9/13/2005 - Council Minutes - CC Minutes Reg Meeting
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APPROVED BY THE CITY COUNCIL ON SEPTEMBER 27,2005
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING September 13, 2005
The City Council of the City of Orange, California convened on September 13, 2005 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
I.1 INVOCATION
Given by Pastor Ron Martin, St. Paul's Lutheran Church
I.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Jon Dumitru
I.3 ROLL CALL
PRESENT - Smith, Ambriz, Murphy, Cavecche, Dumitru
ABSENT - None.
Io4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Presentation recognizing Library Card Sign-Up Month, by Library Services Director
Nora Jacob.
Orange County Transportation Authority (OCTA) presentation on Measure M funded
projects. Mr. Art Leahy, CEO of OCT A gave a report on the status of projects funded
by the Measure M Yz-cent sales tax.
Council discussion on the OCT A presentation included the quarterly event offering free
rides on the Metrolink train to inform citizens of its availability; whether the money
allocated for transit, streets and roads could be used to establish quiet zones; an
explanation of the term design build used in Mr. Leahy's presentation; the fact that the
money collected thus far has been spent and any projects planned for the future will
require the renewal of Measure M by the voters in a future election; and that if a renewal
is approved, the money would not be available to fund projects until the year 2011.
Presentation to the Orange County Red Cross Hurricane Katrina Relief Fund.
Presentation to members of the General Plan Advisory Committee in appreciation of their
service to the City and participation in the Comprehensive General Plan Update project.
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September 13, 2005
PRESENT A TIONS/ ANNOUNCEMENTS/ INTRODUCTIONS (Continued)
Announcements -
POW/MIA Recognition Day event on Saturday, September 17'h, at 9:00 a.m. in front of
City Hall.
Poker Run Motorcycle Ride on Sunday, September 18th, to benefit the Senior Center and
Meals on Wheels Program.
Inner-Coastal Water Shed Clean Up Day on Saturday, September 17'h at Grijalva Park
and Hart Park.
Rotary Clubs and Orange YMCA held a food and clothing drive the past weekend to
benefit the Hurricane Relief Fund.
Football Game on Saturday, September 10th between Orange City rivals Orange High
School and El Modena High School. Councilmember Ambriz noted this inter-city
football game was historically known as the Mayor's Bowl.
2. PUBLIC COMMENTS
Jerome Ryan, 429 N. Lemon, spoke on alleged code enforcement violations in his
neighborhood; and asked for more funding for the Code Enforcement budget. He
displayed photos ofthe alleged violations.
Jen'et Kreitner, Second Harvest Food Bank, spoke on their October food drive; and
Operation Orange County to assist Hurricane victims.
3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion
approving the recommended action listed on the Agenda. Any member of the City
Council, staff or the public may request an item be removed from the Consent Calendar
for discussion or separate action. Unless otherwise specified in the request to remove an
item from the Consent Calendar, all items removed shall be considered immediately
following action on the remaining items on the Consent Calendar.
3.1 Request Council Confirmation of warrant registers dated August 18, 25, and
September 1, 2005.
ACTION:
Approved.
3.2 Request approval of City Council Minutes, Regular Meeting of August 23, 2005 and
Adjourned Regular Meeting of August 23, 2005. (C2500.Do4)
ACTION:
Approved.
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September 13, 2005
3.
CONSENT CALENDAR (Continued)
3.3
Consideration to waive reading in full of all ordinances on the Agenda.
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ACTION:
Approved.
AGREEMENTS
(REMOVED AND HEARD SEPARATELY)
304 Agreement Between City of Orange and Miss Orange Scholarship Association.
(A21 00.0 Agr-0008.V)
SUMMARY: An agreement between the City of Orange and the Miss City of Orange
Scholarship Association for support of the annual Miss Orange Pageant for $5,000 per
year for scholarships for Miss Orange and runner-ups.
Discussion - Councilmembcr Ambriz commented the amount of City support for this
organization is half of what it once was. He suggested that the Mayor could send letters
to educational institutions asking for donation of either revenue or scholarship funds to
the Miss Orange Association.
Mayor Murphy agreed to send letters to Orange educational institutions.
MOTION - Ambriz
SECOND - Murphy
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved approval of the agreement between the City of Orange and the Miss City of
Orange Scholarship Association and authorized the Mayor and City Clerk to execute the
agreement on behalf of the City.
FISCAL IMP ACT: There are sufficient funds budgeted for Fiscal Year 2005-2006 in
account number 100-0101-427800-7016 (City Council - Contractual Services - Miss
Orange Pageant).
3.5
First Amendment to Agreement No. AGR-4401 with Cotton/Bridges/Associates, a
Division of P & D Consultants, to expand the scope of work and budget of the
comprehensive General Plan Update to include an Economic Development Element
and expanded fiscal analysis of land use focus areas. (Continued from Au!!ust 23.
2005) (A2100.0 A!!r-4401.1)
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See related Orange Redevelopment Agency Minutes Item No. 7.1.
SUMMARY: The City of Orangc 2003-2004 to 2009-2010 Capital Improvement
Program includes the General Plan Update as Land Use Project No. 9801. The proposed
project involves a complete update of the City's 1989 General Plan, including the
integration ofthe East Orange General Plan into a single, comprehensive General Plan
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3. CONSENT CALENDAR (Continued)
document. Preparation of an environmental impact report for the updated General Plan is
also included in the work effort. The Economic Development Department has requested
that an Economic Development Element be included in the updated General Plan to
ensure that an economic development strategy is integrated into the City's long-range
comprehensive planning efforts. To achieve a more thorough understanding of the fiscal
implications of potential land use changes and their relationship to the Economic
Development Element, the Economic Development Department has also requested an
expanded fiscal evaluation of these changes. Execution of the First Amendment to the
Agreement is contingent upon the Redevelopment Board approving a budget
appropriation in the amount of $93,579.00 under a companion Agency Agenda Item.
ACTION: Approved an amendment to the City's existing agreement with
Cotton/Bridges/Associates, a Division of P & D Consultants, to expand the scope of the
fiscal analysis of land use alternatives contained in the existing agreement and include the
preparation of an Economic Development Element in the scope of work and budget for
the comprehensive General Plan update in the amount of $93,579.00; and authorized the
Mayor and City Clerk to execute on behalf of the City.
FISCAL IMPACT: The $93,579.00 needed to cover the cost of the Economic
Development Element is available in account number 943-9800-485100-9801. The cost
to prepare the fiscal analysis is $106,150 (including a 10% contingency) of which
$51,500 is already included in the original agreement with Cotton/Bridges/ Associates.
The cost to prepare the Economic Development Element is $38,929 (including a 10%
contingency). Therefore, the net increase to prepare the Economic Development Element
and related fiscal analysis is $93,579.
3.6 FY 2005-06 Animal Control Services Contract with the County of Orange. (A2100.0
Agr-0135.R)
NOTE: Councilmember Ambriz abstained on this item due to a possible conflict
with his employment.
SUMMARY: The City of Orange contracts with the County of Orange for animal
control field and shelter services. The term of this annual renewal is July 1,2005 through
June 30, 2006. The contract amount is $366,798.
ACTION: Approved the proposed contract for animal control services between the City
of Orange and the County of Orange in the amount of $366,798 and authorized the
Mayor and City Clerk to execute the agreement on behalf of the City.
FISCAL IMP ACT: There are sufficient funds budgeted for Fiscal Year 2005-2006 in
account number 100-0000-427100-2350 (Non-departmental - Contractual Services -
Animal Control).
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3. CONSENT CALENDAR (Continued)
3.7
Award of Consultant Services Agreement to Merit Civil Engineering for
Engineering Design Services for Project No. SP-3530, Lincoln Avenue
Rehabilitation. (A2IOO.0 Agr-4749)
SUMMARY: This contract authorizes Merit Civil Engineering to perform design
engineering services for preparing a bid schedule, plans, and contract specifications for
the rehabilitation of Lincoln Avenue from Berkeley Street to Tustin Street.
ACTION: Awarded the contract in the amount of$68,950 to Merit Civil Engineering and
authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMP ACT: Funds are budgeted and available in the following accounts:
272-5011-483300-3059 $26,500 Gas Tax Lincoln Ave: Orange-Olive to Palm
272-5011-483300-3060 $19,450 Gas Tax Lincoln Ave: Palm to Tustin
272-5011-483300-3061 $23,000 Gas Tax Lincoln Ave: Glassell to Orange-Olive
3.8 Award of Consultant Services Agreement to Kabbara Engineering for Engineering
Design Services for Project No. SP-3533, Sycamore Avenue Reconstruction and
Sewer Improvements. (A2100.0 Agr-4750)
SUMMARY: This contract authorizes Kabbara Engineering to perform Design
Engineering Services for preparing a bid schedule, plans, and contract specifications for
the rehabilitation of Sycamore Avenue from Main Street to Batavia Street.
ACTION: Awarded the contract in the amount of $38,700 to Kabbara Engineering and
authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMP ACT: Funds are budgeted and available in the following accounts:
310-9645-483300-3012 $36,000 CDBG: Sycamore Ave Reconstruction
310-9645-483200-5505 $11,000 CDBG: Sycamore Ave Sewer Improvements
BIDS
3.9
Approve plans and specifications and authorize advertising for bids for Reservoir
2A Slope Remedial construction. (C2500.P)
SUMMARY: Plans and specifications have been completed for Reservoir 2A Slope
Remediation, and the project is ready to be advertised for bids. The preliminary
engineering cost estimate is $100,000.00.
ACTION: 1) Approved plans and specifications and authorized advertising for bids for
Reservoir 2A Slope Remediation; and 2) Appropriated $100,000 from unallocated
reserves to account number 601-801 1-484400-8303.
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3. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Funding for this project with the recommended appropriation is:
601-8011-484400-8303 $100,000.00 Reservoir 2A Slope Restoration
Staff may request an additional appropriation when returning to Council for approval to
award the construction contract when exact costs of the construction project can be
identified.
(REMOVED AND HEARD SEPARATELY)
3.10 Bid No. 056-09; SP-3531; The City of Orange Civic Center Finance and Public
Works Building Offices Interior Painting. Approval of plans and specifications, and
request for authorization to advertise for bids. (C2500.M.5)
SUMMARY: Plans and specifications have been completed for The City of Orange Civic
Center Finance and Public Works Building Offices Interior Painting. The project is ready
to be advertised for bids.
Discussion - Mayor pro tem Cavecche indicated that her comments addressed both Items
3.10 and 3.11. She asked whether the funds could be used to purchase smoke alarms for
the safety of the employees. She commented on the need to address life safety and
liability issues first before paint and carpeting.
City Manager, John Sibley responded that steps have been taken to improve the safety of
the buildings~intercom system, fire alarm, practice of safety plans, and that the paint
and carpet would improve the livability of the work environment, noting that carpet does
in fact address safety. He stated that the Public Works and Finance buildings do have
smoke alarms, and he would provide the Council with a report on a smoke detector
system along with what can be done minimally to address safety issues in the Civic
Center buildings.
Council discussed the matter of addressing short term safety and livability issues for
employees and citizens versus long range plans for the Civic Center.
MOTION - Cavecche
SECOND - Smith
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved approval of plans and specifications and authorized advertising of bids for The
City of Orange Civic Center Finance and Public Works Building Offices Interior
Painting.
FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and are
available in the following account:
725-5028-481200-9811 $44,000 (Major Building Improvements)
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3. CONSENT CALENDAR (Continued)
(REMOVED AND HEARD SEPARATELY)
3.11 Bid No. 056-10; SP-3532; The City of Orange Civic Center Finance and Public
Works Building Offices Carpet Replacement. Approval of plans and specifications,
and request for authorization to advertise for bids. (C2500.M.5)
SUMMARY: Plans and specifications have been completed for The City of Orange Civic
Center Finance and Public Works Building Offices Carpet Replacement. The project is
ready to be advertised for bids.
Note: See Item 3.10 discussion.
MOTION - Cavecche
SECOND - Smith
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved approval of plans and specifications and authorized advertising for bids for The
City of Orange Civic Center Finance and Public Works Building Offices Carpet
Replacement.
FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and are
available in the following account:
725-5028-481200-9812 $132,000 (Major Building Improvements)
(REMOVED AND HEARD SEPARATELY)
3.12 Santiago Creek Bike Trail Bridge, SP-3286B; Bid No. 056-11; Approval of Plans
and Specifications and Authorization to Advertise for Bids. (C2500.N)
SUMMARY: The plans and specifications for the renovation of Santiago Creek Bike
Trail Bridge Bid No. 056-11 are complete and the project is ready to bid.
Discussion - Councilmember Ambriz asked for a report on the Hart Park field renovation
proj ect being preempted for this proj ect.
City Manager, John Sibley explained that a shift of priorities occurred to use these
specific TEA federal funds for this key segment of the bike trail, resulting in the
deferment of the Hart Park field renovation.
MOTION - Ambriz
SECOND - Cavecche
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitnt
Moved approval of plans and specifications and authorized advertising for Santiago
Creek Bike Trail Bridge Bid No. 056-11.
FISCAL IMP ACT: Sufficient funds are available in the following account:
550-7021-485100-6102 Santiago Creek Bike Trail Bridge $ 443,776
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3. CONSENT CALENDAR (Continued)
3.13 Rejection of Bids - Bid No. 045-45; SP-350I; Police Headquarters Heating,
Ventilation, Air Conditioning (HV AC) System Renewal, Phase I, and Authorization
to Re-advertise for Bids. (C2500.K)
SUMMARY: The City received two (2) bids with the low bid for a contract total of
$377,000, which was higher than the current $314,000 budget.
ACTION: Rejected all bids received and authorized the re-advertisement ofthis project.
FISCAL IMPACT: Funds are budgeted in the Capital Improvement Program and are
available in the following account:
725-5028-481200-9823 (Police HQ HV AC System Renewal) $314,000
CLAIMS (C3200.0)
3.14 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. Gregoria Bugarin
b. County of Orange
c. Farmers Insurance Group/Edward Imfeld
d. Leonel O. Marroquin
e. V incenz C. Schultz
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.15 Award of Contract - Bid No. 056-02; Community Development Block Grant
(CDBG) Project _ Palm Avenue Reconstruction Phase I and Phase II from Batavia
Street to east of Southern California Railway (SP-3503). (A2100.0 Agr-4751)
SUMMARY: Bids for the rehabilitation of Palm Avenue were received and opened on
July 28, 2005. Three (3) contractors responded to the Notice Inviting Bids. The apparent
low bidder is R.I. Noble Company for $370,215.45.
ACTION: 1) Transferred $155,000 from 310-9640-431000-1070 (CDBG -
Contingencies) to 310-9645-483300-3029 (Palm Avenue Rehabilitation); 2) Awarded the
contract in the amount of $370,215.45 to R.I. Noble Company, 15505 E. Lincoln Ave.,
Orange, CA 92856 and authorized the Mayor and City Clerk to execute on behalf of the
City.
FISCAL IMP ACT: Funds are budgeted and will be available upon transfer to the
following account:
310-9645-483300-3029 $ 399,832.69 CDBG Palm Avenue Reconstruction
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3. CONSENT CALENDAR (Continued)
(REMOVED AND HEARD SEP ARA TEL Y)
3.16 First Amendment to Contract AGR-4552 extending contract with Southwest
Coatings, Inc., to re-paint traffic signal indications and controller cabinets.
(A2100,0 Agr-4552.1)
SUMMARY: Southwest Coatings, Inc. was awarded a contract, on a competitive basis,
to re-paint traffic signal indications and controller cabinets in September, 2004. The
contract allows for annual renewal for up to one (1) year based on mutual agreement. It
is proposed to renew the contract for FY 2005-2006 in an amount not to exceed
$84,000.00.
Discussion - Councilmember Ambriz stated that he was informed by staff that in addition
to the traffic signals and controller cabinets being repainted, his concern for the
restoration of traffic striping, stop signs and crosswalk lines would be handled as well.
MOTION - Ambriz
SECOND - Murphy
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved approval of First Amendment to Contract AGR-4552 with Southwest Coatings,
Inc. in an amount not to exceed $84,000.00 to re-paint traffic signal indications and
controller cabinets, and authorized the Mayor and City Clerk to execute the Amendment
on behalf of the City.
FISCAL IMP ACT: Funds in the amount of $84,000.00 for this contract are budgeted in
the 2005-2006 fiscal year and are available utilizing Gas Tax Exchange Funds in the
Contractual Services Account 273-5032-4271 00.
3.17 Award of Contract - Bid No. 056-07; SP-3529; Slurry Seal at Various Locations,
Fiscal Year 2005-2006. (A2IOO.0 Agr-4752)
SUMMARY: The bids were opened on August 18,2005. Four (4) bidders responded to
the invitation for bids. The apparent low bidder is American Asphalt South, Inc., for
$285,197.00. The Engineer's Estimate is $278,500, which is 2.5% lower than the low
bid.
ACTION: 1) Transferred $250,000 from 262-5011-483300-3127 (SR-22/City Drive
Interchange Improvements) to 262-5021-483300-3120 (Local Street Maintenance);
2) Awarded a contract in the amount of$285, 197 to American Asphalt South, Inc., 14436
Santa Ana Ave., Fontana, CA 92337, and authorized the Mayor and City Clerk to execute
on behalf ofthe City.
FISCAL IMP ACT: Funds
following accounts:
262-5021-483300-3120
540-5028-481105-9607
are budgeted and will be available upon transfer in the
(Measure M - Local Street Maintenance)
(Old Towne Parking Facility)
$250,000
$ 65,000
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3. CONSENT CALENDAR (Continued)
3.18 Final Acceptance of Bid No. 045-41, Hart Park furniture removal and installation,
and authorization to file Notice of Completion with the County Recorder (No staff
report required). (A2100.0 Agr-4653)
SUMMARY: Granger Construction was awarded a contract on March 22, 2005 to
remove and install furniture at Hart Park.
ACTION: Accepted public work improvement known as Bid No. 045-41, and authorized
Hartford Insurance Company, California Performance Bond No. 72BCSDAI697, in the
amount of$31,569.
FISCAL IMP ACT: None.
GRANTS
3.19 Assembly Bill (AB) 3229 grant money for funding of Police support personnel.
(C2500.K)
SUMMARY: AB 3229 makes funds available under the Citizen's Option for Public
Safety (COPS) Program in the Governor's budget. The City of Orange anticipates
receiving $200,000 of these funds and proposes to continue funding six civilian police
support positions. These positions enhance the Police Department's ability to place
sworn Police Officers in the field.
ACTION: Upon receipt, allocated the FY 2005 COPS grant award to continue funding
four (4) full-time and two (2) part-time civilian positions through June 30, 2006.
FISCAL IMP ACT: Since 1997, the City of Orange has received funds through the 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. The anticipated award of $200,000 will support the allocation plan and the
approval does not require a budget adjustment.
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3. CONSENT CALENDAR (Continued)
REPORTS
(REMOVED AND HEARD SEPARATELY)
3.20 League of California Cities Annual Conference Resolutions. (ORI800.0.12)
SUMMARY; At the October 2005 League of California annual meeting, eight proposed
policy resolutions are being brought forward for consideration.
Discussion - Mayor pro tem Cavecche asked for input from the Council as she wanted to
be sure she represented the entire Council in voting on the League's resolutions.
City Manager, John Sibley stated that all of the eight resolutions currently being
considered in committee may not make it to the general assembly. He reviewed the
resolutions that may be voted on at the assembly; noting that none are counter to the
policies of the Council.
Mr. Sibley stated that the California League of Cities is a group representing all 460 cities
in California, which collectively represents interests at the state legislature.
Councilmember Ambriz requested continuance of the item to the next Council meeting to
further review the issues.
Mayor Murphy suggested that it be brought back to Council only if, upon review, a
Councilmember had a specific resolution that needed to be discussed by the full Council
to determine how the Mayor pro tem is to vote.
MOTION - Murphy
SECOND - Dumitru
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to direct the City Manager to report back at the September 27 Council meeting
only if there are specific concerns of individual Councilmembers on the League
resolutions; and authorized Mayor pro tem Cavecche to vote on each Policy Resolution
that goes to the League of California Cities General Assembly at their annual conference.
FISCAL IMPACT: None
RESOLUTIONS
3.21 RESOLUTION NO. 10011 (C2500.K)
A Resolution of the City Council of the City of Orange expressing appreciation to Jorge
DeSouza of the Orange Police Department and commending him for twenty five years of
dedicated service.
ACTION: Approved.
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3. CONSENT CALENDAR (Continued)
3.22 RESOLUTION NO.10014 (A2100.0 Agr-4754)
A Resolution of the City Council of the City of Orange approving a Joint Community
Facilities Agreement with the Orange Unified School District and Serrano Heights East,
LLC.
ACTION: Approved.
3.23 RESOLUTION NO. 10015 (A4000.0 APP-500-05)
A Resolution of the City Council of the City of Orange approving Conditional Use
Permit No. 2517-04, Minor Site Plan Review No. 360-04, Negative Declaration No.
1738-04, and Design Review Committee No. 3943-04, to allow the construction of a new
two-story addition upon property located at 260 S. Shaffer Street within the Old Towne
Orange Historic District
Applicant: Scott and Denise Bolt
ACTION: Approved.
TRACT MAP
3.24 Tract Map No. 16853 - Request for approval. (T4000.0 TRM-16853)
SUMMARY: Tract Map No. 16853 creates fifty single-family parcels as the first phase
of the Del Rio development.
ACTION: Approved the Final Tract Map No. 16853, and accepted dedication offered on
the map.
FISCAL IMPACT: None.
MOTION - Smith
SECOND - Cavecche
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Items 3.4, 3.10, 3.11, 3.12, 3.16 and 3.20 were removed and heard separately.
Councilmember Ambriz abstained on Item 3.6. All other items on the Consent Calendar
were approved as recommended.
END OF CONSENT CALENDAR
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4. REPORTS FROM MAYOR MURPHY
Mayor Murphy recognized and thanked the Street Fair Committee and Committee President
Mike Winger for a successful event over the Labor Day weekend.
5. REPORTS FROM COUNCIL MEMBERS - None.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
7. ADMINISTRATIVE REPORTS - None.
8. REPORTS FROM CITY MANAGER-
The City Manager thanked Roger Hohnbaum for acting as Interim Public Works Director and
announced a new Director was hired and will begin work on Monday, September 19.
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 11-05 (SECOND READING) (A2500.0 Ord-11-05 CUP's)
An Ordinance of the City Council of the City of Orange amending Section 17.10.030(1) of the
Orange Municipal Code regulating the expiration of conditional use permits.
MOTION - Cavecche
SECOND - Smith
A YES - Smith, Murphy, Cavecche, Dumitru
NOES - Ambriz
Moved that Ordinance No. 11-05 be read by title only and same was approved and adopted by
the preceding vote.
10.
RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
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September 13, 2005
II. RECESS TO CLOSED SESSION
The City Council recessed at 6: 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):
1) City of Orange v. Jeffrey Hambarian, Orange County Superior Court
Case No. 807419;
2) Claim of Duane Morse;
3) Appointment of Community Services Director and Economic Development
Director.
b. To consider and take possible action upon such other matters as are orally announced by the
City Attorney, City Manager, or City Council prior to such recess unless the motion to recess
indicates any of the matters will not be considered in Closed Session.
7:00 p.m. Session
12. PUBLIC COMMENTS
John Ufkes, 20121 E Clark Street, submitted documents and spoke on the fiscal analysis of the
proposed East Orange development;
Robert Ward, 340 N. Newport Boulevard, spoke on the issue of open space;
Alex Mintzer, Address on File, spoke on the public meeting process;
Julie Jones-Ufkes, 20121 E. Clark Street, spoke on the availability of Planning documents;
Theresa Sears, Address on File, commended Mayor pro tem Cavecche for her request to amend
an area of the proposed East Orange development;
Bruce W oockman, 516 E. Lincoln Avenue, spoke on the General Plan process.
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13. PUBLIC HEARINGS
13.1 SPECIFIC PLAN AMENDMENT NO. I TO THE PINNACLE AT UPTOWN
ORANGE SPECIFIC PLAN; TENTATIVE TRACT MAP NO. 1685I; AND ADDENDUM
TO ENVIRONMENTAL IMPACT REPORT NO. 1710-02 - BRE PROPERTIES, INC.
(C2300.E)
Time set for public hearing to consider a proposal to convert 122 apartments (of 460 total) to
condominiums, for the Pinnacle at Uptown Apartments, renamed the Renaissance at Uptown
Orange, at 3603 W. Chapman A venue.
Note: An assessment of the potential environmental impacts of Specific Plan Amendment No. 1
to the Uptown at Orange Specific Plan and Tentative Tract Map No. 16851, was prepared in
accordance with the California Environmental Quality Act, in the form of an Addendum to
Environmental Impact Report No. 1710-02.
Staff Report - Community Development Director, Alice Angus gave the staff report, stating the
condominiums are located in the back of the complex; with reciprocal agreements for access and
easement between both rental and ownership portions of the site; use of common recreation
facilities; and adequate parking. She stated that an in-lieu fee of $2,850.00 per unit has been paid
on all 460 units for the purpose of providing affordable housing elsewhere. She added that staff
is recommending 5% (or 6) of the condominiums be restricted for moderate income households.
Council Ouestions
In response to questions by Councilmember Ambriz, it was noted that the in-lieu fees paid were
based on the land values of three years ago; and that the land value three years ago was $35,000
per unit and today, $90- 100,000 per unit.
MA YOR MURPHY OPENED THE PUBLIC HEARING
Mr. David Powers, BRE Properties stated that BRE paid a total of $1.3 million in-lieu fees. He
commented on the rising construction costs putting the success of the development in jeopardy.
This caused the sale of a small portion of the project to mitigate the construction cost increases.
He added that the request that six of the condominium units be offered as affordable units does
not meet the profit threshold established by the shareholders of the company. He then requested
that the six-affordable units be changed to the rental side as moderate income units.
Mayor pro tem Cavecche asked if the BRE company will remain as the owner/manager of the
apartments and condominiums; and whether the affordable units being offered could be offered
as low-income units.
Mr. Powers indicated that the BRE company would remain owners and managers of the
development; and that they would prefer to increase the amount of moderate-income units above
the six requested than offer low-income units.
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CITY COUNCIL MINUTES
September 13,2005
13. PUBLIC HEARINGS (Continued)
Public Comments - Lois Barke, address on file, stated a preference for owner-occupied units
over rentals. She also asked if the rentals and condominiums would be built as originally
planned and whether there would be a homeowners association.
Mr. Powers indicated that the units will remain as approved and listed the amenities planned for
both the condominiums and the apartments. He also explained a company program called Home
Plan. It provides for qualifying residents to receive $5,000 to cover closing costs when they are
in a position to buy. He further stated that there will be a homeowners association for the
condominiums to address management and maintenance issues.
Councilmember Ambriz questioned why the entire project was not being converted to
condominiums.
Mr. Powers stated that the BRE Properties is an apartment-oriented company and that the
shareholders do not have the revenue stream to buy and sell. He then agreed to offer 12
moderate-income affordable rental units as opposed to six affordable condominium units; and
agreed that the size of the affordable units would be in the same proportion to the mix of all
units.
Senior Housing Manager, Rick Otto responding to Councilmember Dumitru, explained the term
moderate income is based upon the median income for the County. He explained that an
individual who would qualify for a moderate-income rental would have to earn 80-120% of that
median income figure.
MAYOR MURPHY CLOSED THE PUBLIC HEARING-
Council Comments
Mayor pro tem Cavecche stated for the record that she wants to be sure that the City holds this
development to the requirement for a landscaping and maintenance program. She also indicated
her support for the offer of the 12 affordable rental units.
Councilmember Smith commented she would not support the project unless it included some
type of affordable housing; and supported the offer for 12 rentals being offered as affordable.
Councilmember Ambriz stated his desire to have a balance in offering low-income families the
opportunity for home ownership.
Mayor Murphy clarified that the qualifications for both owning and renting moderate-income
units were identical; and stated his support for the offer that 12 of the apartment units would be
offered as moderate-income rental units, rather than six moderate-income ownership units.
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CITY COUNCIL MINUTES
September 13,2005
13. PUBLIC HEARINGS (Continued)
City Attorney, David DeBerry stated that 30% of the apartment units will actually come in at
market rate for moderate income. He made the distinction that 12 will be deed-restricted
moderate-income units.
Council clarified that the designated affordable housing units would occur proportionately to the
mix of all units.
Mayor Murphy noted that the developer was indicating agreement with that formula for the
affordable housing mix.
RESOLUTION NO. 10013
A Resolution of the City Council of the City of Orange approving the Addendum to
Environmental Impact Report No. 1710-02, Specific Plan Amendment No.1, and Tentative
Tract Map No. 16851 to allow the conversion of 122 Units from Apartments to Condominiums
(out ofa total of 460 Units) at 3063 West Chapman Avenue.
Applicant: BRE Properties
MOTION - Murphy
SECOND - Ambriz
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to approve Resolution No. 10013 with recognition that 12 of the rental units will be deed
restricted as affordable to moderate income households; and recognizing that the size and type
of the affordable income units be in the same ratio as the remaining 338 apartment units.
13.2 TENTATIVE TRACT MAP NO. 16880, AMENDED CONDITIONAL USE
PERMIT NO. 2478-03, AND ADDENDUM TO MITIGATED NEGATIVE
DECLARATION NO. 1723-03 - TRAMMELL CROW RESIDENTIAL. (C2300.E)
Time set for public hearing to consider a proposal to convert 279 apartment units into 278
condominium units as part of a previously approved mixed-use development on 4.7 acres. The
project site is located within the Orange Merged and Amended Redevelopment Project Area
(former Southwest Redevelopment Project Area), also identified as an
Underutilized/Redevelopment Site in the City of Orange Housing Element Residential Sites
Inventory. Alexan Pacific Grove (formerly named Trammell Crow Apartments) located at 3091
W. Chapman Avenue.
Note: An assessment of the potential environmental impacts of Tentative Tract Map No. 16880
was prepared in accordance with the California Environmental Quality Act, in the form of an
Addendum to Mitigated Negative Declaration (MND) No. 1723-03.
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CITY COUNCIL MINUTES
September 13,2005
13. PUBLIC HEARINGS (Continued)
Staff Report - Community Development Director, Alice Angus gave the staff report, stating that
there are no significant differences resulting from the conversion to condominiums. She added
that 5%, or 14 units, are being designated as affordable to moderate-income households in
addition to the in-lieu fees paid.
COllncil Ouestions
Councilmember Ambriz asked about park fees; reason for 11 of the affordable units being one-
bedroom; and whether there is a reduction in the traffic impacts by the conversion from
apartments to condominiums.
Ms. Angus indicated that the Quimby Act park fees stay the same with the conversion and have
all been paid; the negotiation over the II one-bedroom units being offered as affordable had
been negotiated with the developer early on; and the traffic impacts for apartments is only
slightly higher.
Mayor pro tem Cavecche asked about the expanded retail area, going from 4.200 to 5,000 square
feet with regard to the parking situation.
Ms. Angus clarified that the 4,200 figure applied to net leasable space and the 5,000 figure
represented the gross area.
Councilmember Smith asked if the vendors in the commercial area were known yet.
MAYOR MURPHY OPENED THE PUBLIC HEARING -
Brad Perozzi, representing the Trammell Crow Company stated that construction began in July
2004 and the expected date of completion is June 2006. He reported that the conversion from
apartments to condominiums was necessary due to construction defect litigation and that the
housing market is currently driving the condominium market. He indicated that there will be a
homeowner's association and that a maintenance agreement has been signed for upkeep of the
property. He added that there are no commitments for the retail site yet. He explained the
factors that necessitated the change from apartments to condominiums include the purchase of a
an Insurance policy and the eventual lawsuit over construction defects, but not the construction
costs themselves.
Councilmember Ambriz asked who will manage the affordable units for the 45-year term of the
restriction. He also asked if the 14 units would be located together or spread out throughout the
development.
Senior Housing Manager, Rick Otto responded that the deed restnctlOn will carry the
affordability clause for 45 years and that the deed restricting the resale is recorded. He also
indicated that the Redevelopment Agency would be responsible for managing the resale of the
units.
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CITY COUNCIL MINUTES
September 13,2005
13. PUBLIC HEARINGS (Continued)
Speakers - Lois Barke, Address on file, stated her concern for the impact on schools and parks
and commented on Mr. Perozzi's statement that the development has been designed for the
young professional.
Mr. Perozzi responded that the originally approved plan will not change with the conversion
from apartments to condominiums and that he also did not expect changes in the makeup of the
occupants. These are one and two bedroom units, so are geared more for single residents or
couples; and that the 14 affordable units will be spread throughout the entire project.
MAYOR MURPHY CLOSED THE PUBLIC HEARING
Council Comments
Councilmcmber Smith thanked the developer and acknowledged the developer's willingness to
come forward and offer the 5% affordable units.
Councilmember Ambriz agreed and stated the City's need to revitalize the west side of town.
RESOLUTION NO. 10012
A Resolution of the City Council of the City of Orange approving the Addendum to Mitigated
Negative Declaration No. 1723-03, amended Conditional Use Permit No. 2478-03 and Tentative
Tract Map No. 16880 to allow the conversion of 279 Units from Apartments to 278
Condominiums within a Mixed-Use Development at 3091 West Chapman Avenue.
Applicant: Trammell Crow Residential
MOTION - Cavecche
SECOND - Smith
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved approval of Resolution No. 100] 2.
13.3 GENERAL PLAN AMENDMENT NO. 2004-0005; ZONE CHANGE NO. 1229-04;
MAJOR SITE PLAN REVIEW NO. 355-04 (INCLUDING A DENSITY BONUS); DESIGN
REVIEW COMMITTEE NO. 3942-04; VESTING TENTATIVE TRACT MAP NO. 16787;
MITIGATED NEGATIVE DECLARATION NO. I 736-04; AND MITIGATION
MONITORING PROGRAM - THE OLSON COMPANY (C2300.E GPA-2004-0005)
Time set for public hearing to consider a proposal for the Manchester Walk Townhomes, an 18 unit
townhome project located at the intersection of Manchester Place and Compton Avenue, including
206 N. Manchester Place.
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CITY COUNCIL MINUTES
September 13, 2005
13. PUBLIC HEARINGS (Continued)
Note: a hearing on this matter was originally scheduled for January 11, 2005, but was continued
until the Disposition & Development Agreement between the Olson Company and the Orange
Redevelopment Agency was finalized.
Note: Mitigated Negative Declaration No. 1736-04 was prepared to evaluate the potential
environmental impacts of the proposed project in accordance with the provisions of the California
Environmental Quality Act.
Staff Report - Community Development Director, Alice Angus gave the staff report, stating that
the project is on a former fire station site and consists of 18 units. She stated that 50% of the
units will be sold as affordable~low- to moderate-income~and will remain affordable for 45
years. The Redevelopment Agency will administer the resale.
Council Ouestions - Mayor pro tem Cavecche commented that the City is being asked to become
a financial partner in this project and wanted to confirm that staff has verified items such as the
financial pro forma, the investors, and percentages.
Senior Housing Manager, Rick Otto responded that along with GRC Associates~an economic
and fiscal consultant~staff has assessed this information, and in comparing various costs to
comparable projects in other communities, it was determined that the venture is sound. Mr. Otto
indicated that the original purchase price of the land was $1.2 million with the condition that
50% of the units be affordable.
Councilmember Smith identified several traffic issues in this area which need to be addressed,
such as the need for signage along Manchester at the rear of the Best Buy parking lot, indicating
that a right turn onto Manchester Avenue is prohibited; and wanted to ensure automobile and
pedestrian traffic safety at Compton A venue and Manchester for pedestrians traversing from this
project to Best Buy and possibly the addition of crosswalks to the eating establishments that
residents will access.
Mayor Murphy indicated that these traffic issues would be addressed by staff separately from
this application.
MAYOR MURPHY OPENED THE PUBLIC HEARING -
Kim Prijatel, Vice-President of Development for the Olson Company, commented on community
meetings conducted last year on the project at which concerns were expressed regarding parking
that have since been resolved. She indicated that the construction costs had increased to a point
that not all of the 18 units could be sold at affordable rates.
Mayor pro tem Cavecchc askcd what the developers are making above the 9% developer fee.
She requested a review ofthc fees to breakdown the hard versus soft costs.
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CITY COUNCIL MINUTES
September 13, 2005
13. PUBLIC HEARINGS (Continued)
Ms. Prijatel responded that the Olson Company was acting as the general contractor on the
project; noting that the management fee is 2%; corporate management fee is 3%; and a site
supervision fee of $4.00 per square foot. No separate contractor fee was being charged.
Mr. Otto stated that three years ago the land cost was $35,000 per unit to develop an affordable
unit for rental purposes; today the cost is closer to $90,000.
Mayor pro tem Cavecche reviewed the history of the transactions occurring on the site with the
City selling the site to the Redevelopment Agency and yet indicated that the outcome of the
transactions to establish the affordable project was a worthwhile gain. She stated her concern
over whether the City could expect to get back 50% minimum proceeds on the project.
Mr. Otto stated that what the nine market-rate units will sell for and what the development costs
for the project will be, resulted in staff and the developer coming up with the additional purchase
price to counter-balance those two issues~the two unknown assumptions at this point. Staff is
assuming that based on market conditions and construction costs, that there will be excess profit
on the project. The pro forma on the project is based on what is believed the market units will
sell at and what it will take to build the project, resulting in an additional $500,000 in net
proceeds. The Agency will share 50% of that with the City. He indicated that the fees discussed
earlier were factored into these numbers and that the overhead is static.
Mr. Otto cited the moderate housing price in Orange County is $303,450 based on County's
median income and interest rates which mayor may not change. He explained the conditions
placed on the nine affordable units.
Councilmember Smith raised her concerns regarding the tot lot on the project, suggesting that
bollards be used to protect the tot lot from the parking lot and traffic.
Mr. John Reekstin, Olson Company, indicated that there are many trees around the tot lot which
sits approximately 30 feet back from the curb. He indicated that there are parking spaces in front
of the tot lot as well and indicated an openness to including bollards to ensure the safety of the
tot lot.
Speakers - John Baker, Arbor Way, spoke on the need to give priority to those qualifying for
affordable units and the process of selling the units in the future.
MA YOR MURPHY CLOSED THE PUBLIC HEARING
Council Comments
Mayor Murphy suggested the item be continued for two weeks. He suggested Council give
direction on parameters for negotiation with the Olson Company on the land sale price being no
less than a guarantee of $900,000, which is what the City has invested in the property; and the
percentage of affordable units at no less than 50%.
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CITY COUNCIL MINUTES
September 13, 2005
13. PUBLIC HEARINGS (Continued)
Councilmember Smith indicated that the parcel was an odd shape and she welcomed the Olson
Company accepting the challenge to work out a successful project on it. She favored the
continuance.
Mayor pro tem Cavecche thanked Senior Housing Manager Rick Otto and stated her desire for a
more equitable deal which would still allow the project.
Mr. Reekstin indicated a willingness to negotiate to finalize the project and begin construction. He
agreed to set the land value at $900,000 but asked for elimination of the profit participation clause.
MOTION - Murphy
SECOND - Ambriz
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to continue to September 27, at the 4:30 session, for a further review of the percentage of
affordable units and a property value guarantee; as well as design elements for the tot lot and
parking area.
13.4 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN :rHE ORANGE
REDEVELOPMENT AGENCY AND OLSON URBAN HOUSING, LLC. RELATED TO
THE SALE OF PROPERTY AND CONSTRUCTION OF AN 18-UNIT TOWNHOME
PROJECT LOCATED AT MANCHESTER PLACE AND COMPTON AVENUE.
(A2100.0 Agr-4753)
See related Orange Redevelopment Agency Minutes Item No. 11.1
Time set for joint public hearing with the Orange Redevelopment Agency to consider approving
a Disposition and Development Agreement between the Orange Redevelopment Agency and the
Applicant that specifies the terms and conditions of the sale and subsequent development of the
Manchester property.
In 2003, the Redevelopment Agency acquired the 1.08-acre Manchester property from the City
for the purpose of developing an affordable ownership housing project. Following a Request For
Proposal (RFP) process, the Agency entered into an exclusive negotiation agreement with the
Olson Company to allow them to pursue entitlements and a land sale agreement to develop an
18-unit townhome project on the site. The project provides that nine of the units will be restricted
to moderate income buyers.
MOTION - Murphy
SECOND - Ambriz
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to continue to September 27, at the 4:30 session, for a further review of the percentage of
affordable units and a property value guarantee.
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CITY COUNCIL MINUTES
September 13, 2005
14. PLANNING AND ENVIRONMENT - None.
IS. ADJOURNMENT
The Council adjourned at 9:35 p.m.
The next Regular Council meeting is scheduled for September 27,2005.
I Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a I
regular meeting of September 13, 2005 at Orange Civic Center kiosk, Police facility at 1107
North Batavia. Shaffer Park; all of said locations being in the City of Orange and freely accessible I
to members of the public at least 72 hours before commeucement of said regular meeting; and
available at the Civic Center City Clerk's Office.
.~. /JAt
MARK A. MURR
MAYOR
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