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10/25/2005 - Council Minutes - CC Minutes Reg Meeting I I APPROVED BY THE CITY COUNCIL ON NOVEMBER 8, 2005 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING October 25,2005 The City Council of the City of Orange, California convened on October 25,2005 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 1.1 INVOCATION Given by Sister Joan Cunningham, Police Chaplain 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Boy Scout Troop 241, St. Paul's Lutheran Church 1.3 ROLL CALL PRESENT - ABSENT - 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Recognition of the American Legion Post 132, Michael and Gayle Merino and Rodney Luker for their involvement with the installation of the Veterans Memorial Flag Pole at Depot Park. Employee Service Awards presented to Mary Murphy - City Clerk; Alice Angus - Community Development; Nora Jacob - Library; Damitri Langhoff - Library; Lorna Adkins - Library; Fedgy Casapulla - Police; John Lopez - Public Works. The Mayor announced the Treats in the Streets event on October 27'h. 2. PUBLIC COMMENTS Mary Dargatz, Burly A venue, asked about the passive portion of Y orba Park; the hours of the dog park; and spoke on concerns with the BMX facility. Calvin Kreitner, spoke on the Second Harvest Food Bank annual food drive. Tobi Adaro, 426 W. Almond, spoke on the Second Harvest Food Bank annual food drive. Je'net Kreitner, Second Harvest Food Bank, spoke on the annual food drive. CITY COUNCIL MINUTES October 25,2005 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 October 6 and 13,2005. ACTION: Approved. 3.2 Request approval of City Council Minutes, Regular Meeting, October 11, 2005. (C2500.D.4) ACTION: Approved. 3.3 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. 3.4 Receive and file the City Treasurer's Report, period ending September 30, 2005 . (C2500.F) ACTION: Approved. 3.5 Receive and file the Investment Oversight Committee Report for the period ending July 31, 2005. (ORI800.0.27.16) ACTION: Approved. AGREEMENTS 3.6 Approval of Consultant Services Agreements with Empire Economics, Inc. and Stephen G. White MAl for the preparation of a market absorption study and appraisal report, respectively, for the proposed formation of a Community Facilities District (CFD) for the Del Rio residential development project. (A2100.0 Agr-4773- 4774) SUMMARY: North Orange Del Rio, LLC, a California limited liability company, the developer of a 716 unit residential development project commonly referred to as the Del Rio residential development project, has asked the City to form a CFD pursuant to the Mello-Roos Community Facilities District Act of 1982 (California Government Code Sections 53311 et seq., as amended; herein the "Act") for the purpose of financing the cost of certain public improvements proposed to be constructed as part of the Del Rio PAGE 2 CITY COUNCIL MINUTES October 25,2005 3. CONSENT CALENDAR (Continued) I project. Before a resolution of intention to form the CFD is brought before the City Council for consideration, we need to obtain a market absorption study and appraisal. ACTION: Approved a Consultant Services Agreement for Market Absorption services with Empire Economics Inc., a California Corporation; and, approved a Consultant Services Agreement with Stephen G. Whitc; and, authorized the Mayor to execute and the City Clerk to attest both agreements on behalf of the City. FISCAL IMPACT: The Developer has previously deposited funds with the City to be used by the City to pay the fees and expenses of any consultants to the City employed in connection with the formation of the CFD (including the costs of appraisals, absorption studies and other reports necessary or deemed advisable by City staff in forming the CFD) and issuing bonds for the CFD. If the CFD is formed and bonds are issued, the City shall provide for reimbursement to the Developer, without interest, of all amounts charged against the amount deposited with the City, said reimbursement to be made solely from the proceeds of such bonds. 3.7 Request to authorize execution of two agreements with Vernon Library Supplies, Inc. dba Integrated Technology Group (ITG), for purchase of Radio Frequency Identification (RFID) and Automated Materials Handling (AMH) systems consisting of RFID tags, patron self-check machines, automated book check-in and sorting, and inventory functions, for a combined amount not to exceed $577,324. (A2100.0 Agr-4775) I SUMMARY: With next year's opening of an expanded new Main Library building that will be two and a half times the size of the previous facility, Library staff anticipates that both patron visits and library materials borrowing will, at minimum, double. For the past three years, a Library team has been researching technology solutions that will assist with meeting the new service-level demands without a commensurate increase in Circulation staffing levels. The Library has identified Radio Frequency Identification (RFID) tags and equipment as the backbone of a new infrastructure that will allow for streamlined patron self-checkout and payment technologies, with a goal of having 100% self- checkout by Orange Public Library users. Automated materials handling (AMH) - a smart conveyor and sorting system -- will enable automated check-in and sorting of returned library materials, as well as collection management, security and inventory functionality. With the guidance of Richard Boss, the nation's leading library automation consultant, Library staff has in 2005 conducted a thorough evaluation ofRFID and AMH technology, surveyed the marketplace, issued a Request For Proposal (RFP), evaluated proposals from six vendors, issued a second RFP to the three finalists selected, participated in on-site vendor demonstrations, and visited library sites that have installed systems from the top two vendors. The Library now seeks to move forward with purchasing RFlD, AMH and patron self-service checkout and payment systems for installation in the expanded new Main Library facility. PAGE 3 CITY COUNCIL MINUTES October 25,2005 3. CONSENT CALENDAR (Continued) ACTION: a) Authorized expenditure not to exceed $577,324 in one-time costs for RFID, AMH, and patron self-checkout systems for the expanded new Main Library, including hardware, software, professional services (including maintenance and support) and supplies; and b) Authorized the Mayor and City Clerk to execute the following two agreements with Vernon Library Supplies, Inc. dba Integrated Technology Group (ITG), on behalf of the City of Orange: 1) For the purchase of hardware, software, supplies and professional services from ITG that will provide the Library with a turnkey solution for these systems; and II) For annual maintenance and support for all systems purchased from ITG under the RFID and AMH Purchase Agreement. FISCAL IMP ACT: following accounts: 500-2001-481200-9901 CIP Bldg and Improvements, Main Library Expansion 100-2004-443400-9302 Craft Supplies ~ Automated Library System (RFID tag labels) 100-2004-443410-0000 Book Processing Supplies (RFID tags) 100-2004-471301-0000 Furniture, Machinery, Equip. Additions (conversion equip.) Total A total of $577,324 is currently allocated and available in the $412,024 $ 8,800 $124,000 $ 32,500 $577,324 3.8 Award of Consultant Services Agreement to Kabbara Engineering, Inc. for Engineering Design Services for Project No. SP-3539 and SP-3540, Cambridge Street Rehabilitation from SR-22 to La Veta Avenue and Collins Avenue to Adams Avenue, respectively. (A2100.0 Agr-4776) SUMMARY: This contract authorizes Kabbara Engineering to perform engineering design services for preparing a bid schedule, plans, and contract specifications for the rehabilitation of Cambridge Street from SR-22 to La Veta Avenue and from Collins Avenue to Adams Avenue. ACTION: Awarded the contract in the amount of $39,790.00 to Kabbara Engineering, Inc. 121 North Harwood Street, Orange, CA 92866 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 account: 272-5011-483300-3044 $50,000 Gas Tax Cambridge Street, Collins to Adams 3.9 Reciprocal Easement Agreement between Orange Unified School District and the City of Orange for vehicle access and parking at 250 South Y orba Street. (A2100.0 Agr-4777) SUMMARY: An Agreement to establish reciprocal easements between Orange Unified School District (OUSD) and the City of Orange to allow: OUSD to have vehicular access through the parking lot at Yorba Park to OUSD's newly constructed parking lot at the Career Education Center (Parkside School), which is located at 250 South Y orba Street; PAGE 4 I I CITY COUNCIL MINUTES October 25, 2005 3. CONSENT CALENDAR (Continued) and the City and members of the general public to use OUSD's parking lot on such days and times that the Career Education Center is not open and operating for school purposes. Note: Staff requested this item be removed from the Agenda. MOTION - Murphy SECOND - Ambriz AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru ACTION: Removed this item from the Agenda. (REMOVED AND HEARD SEPARATELY) 3.10 Approval and authorization to award a third one-year extension of Service Contract AGR 4201 with Recovr X, Inc. for sidewalk cleaning services in the Plaza, Plaza Park and Metrolink Station. (A21 00.0 Agr-4201.3) SUMMARY: The City currently has a contract 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 of the outdoor dining areas in the Plaza. A portion of the funding for this contract is the revenue received from the outdoor dining permits. The contract provides for four one-year extensions. Discussion - Councilmember Smith asked about the frequency of sidewalk cleaning and the type of cleaning that is done. Bob Von Schimmelmann, Maintenance Division Manager, explained the dining areas in the Plaza are cleaned twice per month, except for Felix Cafe who pays an additional fee to have that area cleaned weekly. The sidewalk areas in the quadrants and the spoke streets are cleaned every other month. It is an environmental cleaning of pressure washing which does not allow any run off. Councilmember Smith suggested more frequent cleaning of the sidewalks - maybe monthly; and wanted to ensure that the Downtown businesses are informed of how to contact the Public Works Department for additional assistance if needed. MOTION - Smith SECOND - Murphy AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru ACTION: Approved a third one-year extension of contract AGR 4201 with Recovr X, Inc. commencing on July I, 2005 and continuing to and including June 30, 2006, at current rates in an amount not to exceed $45,230.00; with direction to staff to provide a report back to Council on the costs for ore frequent cleaning of the Plaza sidewalks in the future. PAGE 5 CITY COUNCIL MINUTES October 25, 2005 3. CONSENT CALENDAR (Continued) FISCAL IMP ACT: Contract total not to exceed $45,230.00. Funds are available in the current budget in the following accounts: 100-5022-427100 General Fund - Sanitation/Contractual Services 220-5022-427100 Sanitation & Sewer - Sanitation/Contractual Svcs 940-9800-424500 Merged & Capital Projects - Contractual Services $29,120.00 8,700.00 7,410.00 3.11 Award of Professional Services Agreement with Joseph C. Truxaw for Surveying and Base Plans for water main line replacements for Via Escola/Rosemere Street/Townsend Avenue area. (A2100.0 Agr-4778) SUMMARY: This Agreement authorizes the Consultant to provide field surveying, underground utilities research, and prepare base plans for future water main line replacements in the Via Escola/Rosemere/Townsend area. ACTION: Awarded an Agreement in the amount of $6,000.00 to Joseph C. Truxaw & Associates, Inc., 265 S. Anita Drive, Suite Ill, Orange, CA 92868, and authorized the Mayor and the City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are budgeted and are available in the following account: 601-8011-484501-8402 Via Escola Pipeline $6,0000.00 3.12 Award of Consultant Services Agreement to Kabbara Engineering Inc. for Bond Engineering Design Services for Project No. SP-3535, Bond Avenue Rehabilitation from Prospect Street to 400 feet east of Little Lane (City Boundary). (A21 00.0 Agr- 4779) SUMMARY: This contract authorizes Kabbara Engineering to perform engineering design services for preparing a bid schedule, plans, and contract specifications for the rehabilitation of Bond Avenue from Prospect Street to 400 feet east of Little Lane. ACTION: Awarded a contract in the amount of $36,385.00 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 account: 272-5011-483300-3045 $45,000.00 Gas Tax 2105 APPROPRIATION 3.13 Appropriation of revenue for special events and youth programs. (C2500.N) SUMMARY: City Council is being asked to accept and appropriate sponsorships, donations and grants received between January 2005 and September 2005 in the amount PAGE 6 I I CITY COUNCIL MINUTES October 25, 2005 3. CONSENT CALENDAR (Continued) of $5,141.78 for the purchase of supplies, equipment and entertainment for annual special events and youth sports, and appropriate the final $29,314.05 Signs of Support funds for youth programs. Note: Staff requested this item be removed from the Agenda. MOTION - Murphy SECOND - Ambriz AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru ACTION: Removed this item from the Agenda. BIDS 3.14 Project No. SP 3542: Fuel system upgrades at the Corporation Yard, installation of new above ground storage tanks at Fire Stations No.3 and No.6, and removal of outdated tanks at the Fire Headquarters. (C2500.M) SUMMARY: Plans and specifications have been completed for Fuel system upgrades at the Corporation Yard, installation of new above ground storage tanks at Fire Stations No. 3 and No.6, and removal of outdated tanks at the Fire Headquarters. The project is ready to be advertised for bids. The estimated construction cost is $350,000 including contingencies and administration. ACTION: Approved plans and specifications and authorized advertising for bids for Fuel system upgrades at the Corporation Yard, installation of new above ground storage tanks at Fire Stations No.3 and No.6, and removal of outdated tanks at the Fire Headquarters. FISCAL IMP ACT: Funds are budgeted and available in the following accounts: 120-5011-484400-2632 $ 25,200 Fuel Tank installation- Fire Station 3 (Prop. 172) 720-5011-481105-9855 $ 226,709 Fuel Tank Storage Replacement 720-5023-484400-9855 $ 175,161 Fuel Tank Storage Replacement CONTRACTS 3.15 Final Acceptance of a certain public work and improvement; Bid No. 045-01, traffic signal interconnect and fiber optic cable installation from the City Corporation Yard to City Hall, via Chapman Avenue, Main Street and Katella Avenue. (No staff report required.) (A2100.0 Agr-4577) SUMMARY: Moore Electrical Contracting, Inc. was awarded a contract on November 9, 2004 providing an interconnect communications link for the traffic signals on Main Street from Chapman Avenue to Katella Avenue, and on Chapman Avenue from Main Street to City Hall. This project also provides opportunities for video monitoring of PAGE 7 CITY COUNCIL MINUTES October 25, 2005 3. CONSENT CALENDAR (Continued) intersections and communications links between City Hall and the Traffic Management Center at the Corporation Yard. Total cost of this project was $549,150.30. ACTION: Accepted public work improvement, authorized release of retention funds, and authorized the Mayor and City Clerk to execute the Notice of Completion. FISCAL IMP ACT: None. PURCHASE 3.16 Purchase of two (2) Holmatro Hydraulic Rescue systems. (C2500.H) SUMMARY: This is a request that the City Council authorize purchase of two (2) Holmatro Hydraulic Rescue systems for a total of $ 60,111.57. ACTION: Authorized purchase of two (2) Holmatro Hydraulic Rescue systems from FS3 (Fire Service Specification & Supply). FISCAL IMPACT: Sufficient funds are available in the following accounts: 100-3022-471301 (Machinery & Equipment) $40,253.00 120-3022-471301 (Machinery & Equipment) $ 4,858.00 Additionally, $15,000 in Cal JAC (California Joint Apprentice Committee) funds will be utilized for this purchase. Cal JAC is a partnership between the California Professional Firefighters and the California Fire Chiefs Association. RESOLUTIONS 3.17 RESOLUTION NO. 10000 (C2500.J.4.2.1) A Resolution of the City Council of the City of Orange Approving the Memorandum of Understanding Between the City of Orange and the Orange Police Management Association Concerning Wages, Hours, and Other Terms and Conditions of Employment Effective July I, 2005 through June 30, 2008, and Repealing Resolution No. 9386 and Amendments Thereto for Said Employees. ACTION: Approved. (REMOVED AND HEARD SEPARATELY) 3.18 RESOLUTION NO. 10016 (A4000.0 APP-501-05) A Resolution of the City Council of the City of Orange denying Appeal No. 501-05 and Upholding the Decision of the Planning Commission Adopting Mitigated Negative Declaration 1748-05 and Approving Conditional Use Permit 2511-04 to allow the PAGE 8 I I CITY COUNCIL MINUTES October 25,2005 3. CONSENT CALENDAR (Continued) expansion of a Private School from 75 Students to a Maximum Enrollment of 150 Students at the property located at 1130 East Walnut Avenue Applicant: Creekside Christian School Note: Mayor pro tem Cavecche abstained on this item due to the proximity of her residence; and left the dais. Councilmember Ambriz abstained on this item as he was not present at the public hearing. Discussion - Councilmember Smith cited this project as a great example of the community and the church working together, noting that the neighbors had provided some financial assistance for the fencing. MOTION - Smith SECOND - Dumitru AYES - Smith, Murphy, Dumitru ABSTAIN - Ambriz ABSENT - Cavecche ACTION: Approved. 3.19 RESOLUTION NO. 10032 (OR1800.0.27.16.2) A Resolution of the City Council of the City of Orange Approving and Adopting a Statement of Investment Policy for Fiscal Year 2005-06. ACTION: Approved. MOTION - Dumitru SECOND - Ambriz A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru Items 3.10 and 3.18 were removed and heard separately. Items 3.9 and 3.13 were removed from the Agenda. Mayor pro tem Cavecche left the dais for Item 3.18; and Councilmember Ambriz abstained on Item 3.18. All other items were approved as recommended. END OF CONSENT CALENDAR ******** 4. REPORTS FROM MAYOR MURPHY - None. 5. REPORTS FROM COUNCILMEMBERS - None. PAGE 9 CITY COUNCIL MINUTES October 25, 2005 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. 7. ADMINISTRATIVE REPORTS - None. 8. REPORTS FROM CITY MANAGER- None. 9. LEGAL AFFAIRS - None. 10. NOTICED HEARINGS 10.1 PROPOSED STREET VACATION - PORTION OF MANCHESTER AVENUE ON THE WESTERLY SIDE OF MANCHESTER AVENUE AND NORTH OF COMPTON AVENUE. (S4000.S.4) The City Council adopted Resolution No. 10017 on September 27, 2005 stating the City's intent to vacate a portion of Manchester Avenue. Having duly noticed and posted notice of a hearing, the City Council has set this time for all persons interested in the proposed vacation and to consider whether to adopt Resolution No. 10031. RESOLUTION NO. 10031 A Resolution of the City Council of the City of Orange vacating a portion of an easement for public road and highway purposes on real property generally located on the westerly side of Manchester Avenue and north of Compton A venue. MOTION - Smith SECOND - Ambriz A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to approve Resolution No. 10031. 11. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 12. RECESS TO CLOSED SESSION Note: The City Council recessed at 5:30. They did not meet in Closed Session. The City Council will recess to a Closed Session for the following purposes: a. 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. PAGE 10 I I CITY COUNCIL MINUTES October 25, 2005 7:00 P.M. SESSION 13. PUBLIC COMMENTS - Marty Poort, Address on File, spoke on evacuation plans for East Orange; and asked to participate on a Committee for this purpose. 14. PUBLIC HEARINGS 14.1 CITY OF ORANGE 2005 URBAN WATER MANAGEMENT PLAN (C2300.K) Time set for public hearing to consider adoption of the City's Urban Water Management Plan. Per State law, the Plan must be updated every five years. The Plan discusses current and future water demands, the availability and reliability of water supplies, various water demand management measures to reduce water use, and a water shortage contingency plan. NOTE: Staff has requested this hearing be continued to November 8, 2005. RESOLUTION NO. 10030 A Resolution of the City Council of the City of Orange adopting the 2005 Urban Water Management Plan. MOTION - Cavecche SECOND - Smith AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to continue to November 8, 2005 at the 4:30 p. m. Session. 14.2 GENERAL PLAN AMENDMENT NO. 2004-0006, SANTA FE DEPOT SPECIFIC PLAN AMENDMENT NO.2, ZONE CHANGE NO. 1230-04, TENTATIVE TRACT NO. 16786, MAJOR SITE PLAN REVIEW NO. 358-04, DESIGN REVIEW COMMITTEE NO. 3944-04, DEMOLITION REVIEW FOR NON-CONTRIBUTING STRUCTURE IN OLD TOWNE HISTORIC DISTRICT, MITIGATED NEGATIVE DECLARATION NO. 1737-04, MITIGATION MONITORING PROGRAM - 501 WEST MAPLE - OLSON COMPANY (C2300.E GPA-2004-0006) Time set for public hearing to consider a proposal for a Transit Oriented Development adjacent to the Santa Fe Depot, which will include 32, for-sale, residential units, with three of the units fronting on Maple Avenue designed as live/work units. The project is providing five (15%) of the units as affordable, for-sale units to persons of moderate income, for a period of 45 years. Total parking for the units is 81 parking spaces, which is one space over the required number of 80 spaces. Each of the units will have a two-car garage, resulting in 64 covered garage spaces. Additionally, seven open guest parking spaces will be provided onsite, as well as nine open retail parking spaces, serving as the parking for the commercial component of the three-live/work units. PAGE 11 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Finally, one additional open parking space is provided. The proposed units are a maximum of 32 feet in height, each unit having two stories, with a partial mezzanine (or third story). Alice Angus, Community Development Director, provided a brief staff report. Councilmember Ambriz expressed concern on some of the types of uses that could be allowed in the work units; and asked about the compatibility of the project with the surrounding neighborhood. Ms. Angus explained that the Council can refine or restrict the types of uses for the work units. She explained that this project is meant to be transit oriented and a transition area between the residential neighborhood and the industrial area, which is why the architecture has picked up some of the industrial elements. Councilmember Smith asked about the front windows in the work units and the windows along the property lines; expressing concern that the windows along the south and west property lines need to be configured for privacy. She asked about restricting the work units so they are not sublet for residential purposes; and asked about the condition for underground utilities. Ms. Angus explained the windows in the front are storefront type windows and meant to be transparent, not opaque. She stated the intent of the work units is for them to remain as work units and there can be a deed restriction to that affect. Also, with regard to the underground utilities, the applicant will need to work on a plan with Public Works and Edison and develop a feasibility study for this. Public Works has the ultimate decision for undergrounding the utilities based on consultations with the utility companies. Councilmember Dumitru confirmed that the garages will not be used as storage for the work units, and also that all tandem parking was eliminated from the original plan. MAYOR MURPHY OPENED THE PUBLIC HEARING Kim Prijatel, Olson Company, reported they have worked with the community to refine this project; and are in agreement with a deed restriction on the work units. Councilmember Smith clarified her request that a plaque be installed on the property generally paying tribute to the history of that site. Ms. Prijatel stated they are anticipating more professional uses for the work units and would agree to a more restricted list of possible uses; she noted that all city fees which are typically paid, have been paid; that there should not be any impact to the schools as all but three of the units are one bedroom; they are all for-sale units; and there is no requirement for owner occupied units, except for the five affordable units. PAGE 12 I I CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) Speakers - . John Baker, Address on File, spoke in opposition, asking about a loading zone, lack of motorcycle parking and bicycle racks, and expressed concern about the height of the buildings and the compatibility with the surrounding areas. . Pat Hetherington, Address on File, spoke in opposition, citing problems with increased traffic and the impact to the neighborhood. . Mitch Tanner, Parker Avenue, spoke in opposition. . Todd Denning, 620 W. Maple, spoke in opposition, citing problems with the height and the types of businesses that could be allowed in the work units. . Jeff Frankel, Old Towne Preservation Association, expressed concern with this project setting a precedence in the Historic District. Ms. Prijatel explained that all City codes have been met; the project has been lowered in height substantially from the original proposal; and they will look at the window configuration for pnvacy Issues. Councilmember Dumitru expressed concern on the railroad noise issues, noting that the trains can sound their horns for miles. John LoVerde, Acoustical Consultant, stated the sound study was a 24-hour study, indicating there will be dual paned windows on the eastern side of the project, both for sound and heat control, and which are sufficient to reduce the noise to an acceptable level. MAYOR MURPHY CLOSED THE PUBLIC HEARING Mayor pro tem Cavecche wanted to ensure that the mechanical equipment on the roof would be shielded; and there would be a landscape maintenance requirement. She also asked that buyers be made aware that the City does not have a quiet zone, that the City would not be responsible for the noise problems and that they are buying the homes at their own risk. She spoke on the improvements made to the project since it's original submittal, but was concerned that some of the neighbors were still dissatisfied with the project. Ms. Angus indicated that the proposed windows are as good as they can be for that type of window; but that the Olson Company will have to disclose the train noise and vibration. She also explained that the 32 foot height is allowed. She also explained there is no designated motorcycle parking because there are two-car garages and motorcycle parking is not typically an additional requirement. Councilmember Smith noted this project is something new for Old Towne - it is a transit oriented mixed use, trying to accommodate the existing residential neighborhood, attenuate sounds, provide affordable housing and still pencil out for the developer. She thanked the applicant and community for working together on this project. PAGE 13 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Councilmember Ambriz stated he was impressed with the project, especially given the concerns of the neighborhood. It is a new type of project, but will fit in well with what is planned for the downtown area. Councilmember Dumitru stated he would support the project, but only with all the added conditions that have been discussed; but wanted to ensure that the home buyers are made aware of the noise issues from the trains. Mayor pro tem Cavecche stated she appreciated the applicant scaling down the project, but will be watching the project to ensure it is built exactly like what is presented. Council Action RESOLUTION NO. 9973 A Resolution of the City Council of the City of Orange approving Mitigated Negative Declaration No. 1737-04, General Plan Amendment No. 2004-0006, Santa Fe Depot Specific Plan Amendment No.2, Major Site Plan Review No. 358-04, Design Review Committee No. 3944-04, Tentative Tract Map No. 16786, and Demolition Review for a non-contributing structure in the Old Towne Historic District to allow for the development of 32 for-sale residential lofts on 1.82 acres of land located at 501 West Maple Avenue. Applicant: The Olson Company MOTION - Murphy SECOND - Smith AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to approve Resolution No. 9973 with the following added conditions: sound attenuation measures be taken; mechanical units on the roof be shielded from view; landscape maintenance standards be established and maintained by the homeowners association; deed restrictions be applied so that potential buyers be notified of the railroad noise issues through a written disclosure that each owner must sign; deed restrictions be applied so that homeowners are not allowed to sublet work units or convert the work units to residential use; CUPs be required for possible uses of the work units in Categories B, C, D and E as outlined in Attachment No.8, List of Proposed Uses, dated October 25, 2005; opaque windows be used for privacy issues with neighboring residential properties to the north and west; that the proposed art graphics are required fro the east elevation and shall be reviewed by the Design Review Committee and themed to reflect Orange's history; that a bike rack be installed; and that a plaque be installed citing the history of the site. PAGE 14 I I CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) ORDINANCE NO.9-OS (FIRST READING) An Ordinance of the City Council of the City of Orange approving the reclassification of approximately 1.82-acres of property from M-l (Light Manufacturing) to R-3 (SPZ) (Residential MuItiple Family with Mixed Use Santa Fe Depot Specific Plan Overlay Zoning) located at 501 West Maple Avenue. Zone Change No. 1230-04 Applicant: The Olson Company MOTION - Murphy SECOND - Ambriz AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved that Ordinance No.9-OS be read by title only and same was set for second reading by the preceding vote. 14.3 SEIR1278/DEIR 1716 / GENERAL PLAN AMENDMENT 2003-0001 AMENDMENT TO SANTIAGO HILLS II PLANNED COMMUNITY (ZONE CHANGE 1218) ADOPTION OF EAST ORANGE PLANNED COMMUNITY (ZONE CHANGE 1219) PRE-ANNEXATION DEVELOPMENT AGREEMENT RUNOFF MANAGEMENT PLAN DESIGN GUIDELINES FOR SHII AND EOPC AREA I CONCEPTUAL GUIDELINES FOR EAST ORANGE AREAS 2 & 3 TENTATIVE TRACT MAP 16199/ TENTATIVE TRACT MAP 16201 TENTATIVE TRACT MAP 16514/ CONDITIONAL USE PERMIT 2488-03 (C2300.E GPA- 2003-0001 ) The public hearing to consider a request by The Irvine Company for a project known as Santiago Hills II Planned Community (SHII) and East Orange Planned Community (EOPC) was continued to this time from October 11.2005. NOTE: THE PUBLIC HEARING IS CLOSED. Irvine Company Senior Vice-President, Dan Miller addressed comments made during the public comment period in previous meetings. He stated that the suggestion to concentrate development in SHII and Area I known as Alternative 7, includes eliminating the golf course and the equestrian operation that would have greater environmental impacts in terms of land use and water resources, traffic and circulation, recreation, visual and air quality. He stated that the current plan balances the need for housing and at the same time minimizes the environmental impacts. The consultants have determined that the existing plan is environmentally superior to the alternatives that have been proposed. PAGE 15 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) He then addressed comments made regarding fire protection, noting that the requirements for fuel modification zones, building materials required, fire sprinklers and the newly, fully- equipped fire station in Area 2 will afford this project significant fire protection. He added that the upgraded fire protection codes afford newer homes with enhanced protection that older homes do not possess. This protection would extend to the canyons with the on-site fire presence. He stated that the Irvine Company concurs with staff comments to the City of Villa Park's letter commenting on the traffic study. With regard to the fiscal impact of the project, he stated that it was based on City assumptions, City cost factors and worst case scenario~very conservative estimates were used on the revenues in terms of market values of the homes and 100% spend-out of all costs associated with the project. Still the study concluded that in addition to the $35,000 surplus, there is a $636,000 contingency to address anything over 100% of the project costs. He added that in addition there exists $950,000 that has been allocated to cover city government overhead~fixed costs. He concluded that the project is fiscally sound, adding that at build-out, the project will bring in $1 million to the city to be used as needed. He spoke on the $400,000 cash payout, used by the City as it chooses to cover the initial shortfall of revenue, is being given to the City in the early periods of development. He referred to a report from traffic engineer consultant, Les Card who determined that the project is fully consistent with Orange County practices and standards for specifically Santiago Canyon Road, addressing a public comment regarding traffic, being consistent with the County's standards. He added that the County standards are not relevant to analyzing the project which should be based solely on City standards. He stated that in addition to traffic standards, the City is to comply with its own General Plan and CEQA standards. He summarized the efforts made by his company to meet with community members and homeowners associations, from which comments were made for preservation of the character of the community, maximization of public benefit, mitigation of traffic and circulation, more trails and parks, fiscal balance, control of the water run off, schools and other environmental issues. He stated that the Irvine Company's project more than doubles the public improvements required by state laws and local City laws. In addition, he listed the company's fair share in providing: $2.2 million in TSIP fees; road improvements to Santiago Canyon Road; supplemental money of $3.2 million to be used as the City sees fit in the East Orange area; contribution to the completion of the Grijalva Park gymnasium; a sports park in Area 1; trails; and an improved site for 128 low-income, affordable housing units. He articulated that all housing units in Area 3 were being eliminated and the land would be converted to open space. He mentioned the immediate addressing of the improvements needed to the Santiago and Cannon intersection and advised the purchase of radar traffic control speed signs and a traffic signal interconnect study for immediate implementation. He ended by stating that the Irvine Company accepts all the findings in the staffreport~the 160 conditions of approval and the 230 required measures in the mitigation monitoring program. PAGE 16 I I CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Council Questions - Councilmember Ambriz asked whether the developer had the option to acquire County approval of this project should the Council deny the project. He requested the details of the ramifications to the City of this scenario. He stated the importance of this information being made public. City Manager, John Sibley articulated that if the Irvine Company did not receive approval from the City and they took their project to the County, the City in effect would lose control of the project. He stated that if approved by the County, the City would have the homes and the traffic in its backyard, but lose all the benefits and incur all the concerns that have been worked on over the years to mitigate. He added that the development agreement would be between the Irvine Company and the County of Orange; the LAFCO annexation process would place the area in the City's sphere of influence, but the County would be in control and the City relegated to the role of a concerned agency. Councilmember Ambriz asked about the alternative to offer commercial-retail in Area 3, but not office-professional. He then asked what concerns existed with this alternative; and whether the deletion of Area 3 from the project would affect the proposed retail establishment. Mr. Miller described the retail as being commercial-recreational~a staging area for a private equestrian facility which would not be affected by the direction to delete planned homes from this area. Councilmember Ambriz asked about trails and stated that the open space currently on the project site is not user friendly due to fencing. He asked for details of the plans to offer trails as part of the proj ect. Mr. Miller described the planned trails as Class I and II bikeways, equestrian, and hiking trails connecting Orange Park Acres (OPA) and the East Side. He indicated that the trails allow connection to the land reserve managed by the nature conservancy. He stated that it would be possible to ride a horse from OP A to Black Star Canyon. He added that the homeowners association, not the City, will maintain the trails and all will be open to the public, ensured by the CC&R's. Mr. Miller responded to a question from Councilmember Ambriz who asked about the possibility of spending some of the funds on the crossing grade at Orange Hill Restaurant and Orange Park Boulevard, indicating that the supplemental traffic contribution could be used to fund this improvement. Councilmember Ambriz asked about the performance of the Albertson's shopping center at Jamboree and added that he drove through the area in the past two weeks and found the traffic not to be a significant issue at the times he was present. He further asked about the City of Tustin agreeing to the improvements that affect the road in their city boundary and their commitment to spend money on their part. PAGE 17 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Mr. Miller stated that the two shopping centers and specifically Albertson's are under- performing. He indicated the hope is that the increased population will stabilize the businesses in the area. Mr. Miller stated that the City of Tustin has the money to make the improvements on the road, but had not acted on it yet. He indicated that it was impossible to force another jurisdiction to address issues within their own borders which is why the project required a Statement of Overriding Consideration on the issue. Councilmember Ambriz brought up the affordable housing issue. He compared a couple of developments recently approved in the west end of town that chose to pay the in-lieu fee rather than build affordable units. He asked why the Irvine Company is proposing the affordable units as part of this project. He also stated that the jobs are mainly in the west end of town and felt transportation from the project to the west end may pose a problem. Mr. Miller responded that The Irvine Company has experience with affordable housing and have established a good track record in that area. He added that the project has placed a lot of controls on the design and the look of the affordable units so they are not set apart from the market-priced units. He then detailed the need to obtain permits which allows pursuing the debt financing for the tax credits, County and City set-aside and other aspects of financing. He added that he believed the transportation issue is workable. Responding to Councilmember Ambriz's question about the water service provider, Mr. Miller stated that the Irvine Ranch Water District will work with the Santiago County Water District to offer sewer and water services and take care of the natural treatment systems and related water Issues. Councilmember Ambriz asked about the noise issue being created by increased traffic to and from the development and what the project will offer to appease the residents affected. Mr. Miller indicated that one idea was to lay rubberized asphalt on Santiago and Chapman streets and reiterated that the supplemental traffic contribution could cover this cost. He added that the noise studies done in connection with the EIR's did not identify a level of significance or exceed a threshold to warrant mitigation. Councilmember Ambriz asked about the number of students expected and whether busses to transport the students to school were being pursued and had they received a buy-in from the schools on accepting these students. Mr. Miller indicated that the schools do a yearly analysis of student populations. He added that the Irvine Company negotiated a $76 million mitigation agreement that allows the schools to get state funding for a new school or spending the money on existing school expansion. He added that the Irvine Company will provide bus cutout areas in the roads, but specific evaluation will occur on this issue once the homes are built. PAGE 18 I I CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Councilmember Smith - stated that questions have been raised as to whether the Council has met with the Irvine Company and toured the area of the project. She stated that the Council has met with the developer and toured the area numerous times giving each of the Councilmembers a thorough familiarity with all aspects of the project issues. She stated that she is not interested in trade-offs of recreation-open space for commercial space, but is looking for convenience-commercial. She requested an understanding of the option proposed around the lake and marina area; and asked for the potential square footage for a convenience-commercial operation for that area if the size of the community warrants it. Mr. Miller responded that the tract map for Area 2 would offer that detail and that the commercial-recreation would be replacing open space to allow for the possibility of a golf course, a 100-unit inn or the marina operation. He added there are a number of recreation- commercial areas that would allow convenience-commercial without taking away open space; and the private equestrian facility is also designated commercial-recreation and would stay that way unless the operation was not successful. Councilmember Smith stated that she preferred nothing south of Santiago Canyon Road and was addressing the north side of the road. She added that commercial operations need visibility from the road and that the equestrian business was desirable for the area being highly compatibility to the project. She added that the Augustine Ranch site has been on the Irvine Ranch for 80 years and she hoped to preserve the area as equestrian. Irvine Company Project Manager, Brian Austin stated that in regard to the area adjacent to Irvine Lake, the Irvine Company owns property between Santiago Canyon Road and the Irvine Ranch Water District and Serrano Water District property. He described the possibility for a 4.2-acre flat pad that would have direct access and visibility from Santiago Canyon Road. He indicated that a 40-43,000 square foot convenience-commercial business could be operated there which would be a small store or informal eating and/or other service shops useful to the residents. Mr. Miller added that these questions will be addressed when the tract maps are processed in a year or two. He added that this area is the gateway to all the trails and open space and it makes sense to be maintained as an equestrian site. Councilmember Smith requested the results of the Irvine Ranch Water District board meeting's discussion of the management of the six large water basins. She also asked how the district is paid for their services. Irvine Ranch Water District General Manager, Paul Jones stated the district has been working with staff and the Irvine Company regarding details of the ROMP. He detailed the services to be provided by the district to the development: retail water service, non-potable water for irrigation, management of the ROMP and the large basins, in addition to 20 additional basins located in the project required to be maintained by the homeowners association. He added the need for a water services agreement with the City for urban water runoff treatment services. He concluded by PAGE 19 CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) stating that the board members had given a nod to each of these issues being included in the final draft of the water services agreement. Mr. Jones indicated that the payment for the district's services is obtained througb the water service revenue. He added that the district's review of the 20 water basins is compensated through the water service revenue as well. Additional work required will be reimbursed by the homeowners association. Councilmember Smith asked Mr. Miller if her suggestion for the inclusion of fountains in the project had been added to the design and in some of the green areas. She added that the fountains would be a reprise of the signature plaza in Orange and blend in with the planned architecture of the homes. Richard Roy, Irvine Company, concurred with the fountains fitting into the design and indicated that they would be incorporated into the final designs as appropriate and then reviewed by the Design Review Committee. Councilmember Smith spoke on the engagement letter proposed for the affordable housing. She stated her agreement with it being written in an open-ended fashion. She requested that the currently-proposed 128 units be increased and added that she hoped at least 150-160 affordable units could be offered. Councilmember Smith asked if the children living in the project could attend the Silverado School. Mr. Miller responded that the Silverado School community indicated their desire to not be impacted by additional students attending their school which was agreed to by the Orange Unified School District. He stated that the students would be accommodated within the project area if that decision stood. Councilmember Smith stated that many of the public comments expressed that the eastern night sky was a beautiful sight. She agreed with the suggestion expressed by the speakers who stated a desire for sodium-vapor lighting. Mr. Miller stated that the lighting would be a balance between the public safety requirements of the Police and Fire Departments, but that particularly in Area 2 low lighting was planned. He advised that the lighting in the private streets is flexible; however, on public streets the lighting is dictated by code. Councilmember Dumitru - commented on the process of approving the project~stating that projects that take longer to be reviewed typically become better through the process. He then requested clarification of the two time frames listed in the traffic studies, 2007 and 2010, stating that CEQA disallows segmenting. He also asked whether segmentation and phases were one in the same. PAGE 20 I I CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) Traffic Engineer, Kendall Elmer, Austin Foust and Associates, indicated that the issue of segmentation is not an accurate depiction of the study. He explained that the analysis occurred of traffic conditions in 2007 for the Santiago Hills II and East Orange Area I; and then the subsequent time frame of 2010~the full development. He stated that this was misperceived as segmentation. He explained that no segmentation of the project occurred, but rather an analysis of the two different stages of the project. He explained that phasing is analyzing the project in two different time frames, as the project grows, and segmentation is assuming a part of the project is a given under an early time frame and under a later time frame. He added that for projects ofthis nature, phasing is used for traffic analysis~examining the full development under a given phase v. no development for whichever time frame. Councilmember Dumitru asked if the daily volume counts included trips to and from schools, churches, the boy scout camp, etc. He stated that public comments were made, asking why the County traffic models were not used. Traffic Engineer, Les Card, CEO, LSA Associates in Irvine, stated that the East Orange project's potential impacts were examined as if assessed by the County under their standards. He added that the County when it comes to Santiago Canyon Road, requires a specialized analysis called out in their traffic implementation manual. It requires projects under consideration by the County to apply a special highway capacity manual and a special level of service criteria for Santiago Canyon Road until uninterrupted segments of this road are less than three miles in length. Based on program improvements planned on Santiago Canyon Road, Modjeska and Ridgeline Drive, traffic signals are proposed. Mr. Card reiterated the key issue is there will be no segments less than three miles in length in 2010. Since the three mile segment rule has been met, the methodology and the performance criteria utilized in the Austin Foust report contained in the EIR for the project is appropriate for the analysis and therefore the County's General Plan and implementation criteria are met. City Attorney, David DeBerry explained that a recent Appellate Court decision found that a development going through the County's processing is required to comply with the County's General Plan. He added that the Appellate Court found that the County's General Plan required the use of this highway capacity manual analysis; however, CEQA requires the City to use its General Plan, so the initial methods to analyze traffic impacts on Santiago Canyon Road have to be consistent with the City's General Plan. He added that the General Plan is the local agency's constitution for development and must be followed. He concluded that a request was never made to analyze the traffic volumes on Santiago Canyon Road other than using the City's General Plan. Councilmember Dumitru commented on the traffic report appendices missing a few pages. He asked if this would affect the CEQA process. PAGE 21 CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) Mr. DeBerry indicated that CEQA does not require technical appendices be circulated along with the ElR. He indicated that the technical appendices were circulated at various locations: City Hall, EI Modena library, Main Library, Villa Park branch library and the Silverado County branch library. He added that there was no request for the technical appendices until late August, 2005, for a price quote; and on September, 2005, one request was received for figures not included in one report. He reiterated that the blank pages do not violate the CEQA process and the appendices do not need to be re-circulated. Councilmember Dumitru asked if the traffic report took into consideration the Mountain Park development including trips to and from schools, churches, and the Albertson's Shopping Center. Mr. Elmer stated that the assumption in terms of the land use for that area is the development plan approved by the City of Anaheim, so it was included. was ajoint effort with the City and as part of the Master Plan of Arterial Highways (MPHA) amendment process. It was noted that this was a proposal in the pipeline being considered by the City of Anaheim. In the traffic study, a 2025 horizon that assumes only committed infrastructure and a 2025 build- out scenario with all the City's full Circulation Element Plan and the County MPHA (including unfunded, unplanned, tentative circulation facilities) were examined and verified. He explained that the Weir Canyon extension down to the 241 Corridor, including the interchange ramps to and from the south on the 241 became a committed part of the approved Mountain Park project. He further added that the Mountain Park project was assumed as part of the traffic analysis, but not the extension of Weir Canyon Road and the interchange. He stated that without the interchange there is less, more restrictive access between East Orange area and the Mountain Park area; and with the interchange some of the traffic congestion will be alleviated. Councilmember Dumitru asked if the study took into account the effects south on Santiago Canyon Road past Silverado. He also asked if there were plans or presumed connectivity that would be accomplished with the extension of Jeffrey or Culver. Mr. Elmer indicated that the effects on Santiago Canyon Road past Silverado were addressed by the study and that Culver was not assumed in any of the scenarios due to a recent action by the City of Irvine to remove it from the MP AH. He added that Jeffrey was included in the MP AH element, but not a funded or committed element. Also, in the 2025 scenario that extension was assumed in the build-out scenario only. Councilmember Dumitru asked if analysis occurred to identify potential long-range improvements needed on Chapman, and Santiago Canyon Road and whether the study showed LOS for existing and future conditions estimated using intersection capacity utilization values that conflict with the current EIR information. PAGE 22 I I CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Mr. Elmer responded that it was not done as part of the study for this project, but rather a traffic study to provide information on traffic forecasts in the future along those roads to give future traffic condition, levels of service, and also configurations of types of improvements including potential downgrades~to delete from the MPAH. He gave the example of Chapman Avenue downgraded from a 6-lane major arterial to a 4-lane primary arterial. He stated that although the study was not prepared for this project it contained helpful information on the MP AH amendments proposed as part of this project. Councilmember Dumitru stated that it was his desire, as a Council, to identify the transportation improvements that will be of benefit to the citizens as part of this project and prioritize the supplemental traffic contribution from the Irvine Company for use on the improvements. City Manager, John Sibley stated that the intersection deficiencies have been identified and the city has taken measures and has included projects in their Capital Improvement Program to address these intersections. The additional mitigation money from the project will help accelerate those improvements. In addition, the City will have a direct contribution from this project, as well as the supplemental fee for those improvements. Without the project, the identification of deficiencies would be addressed and then wait for available funding. Assistant City Engineer, Roger Hohnbaum indicated that the improvements along Chapman Avenue would be at the intersections ofYorba, Prospect, and Hewes, up the grade. He added the downsizing of the project and the changes being proposed to the Master Plan would preclude further City improvements. He then indicated that there is a deficiency in front of the Orange County Mining Company restaurant which is County, unincorporated territory. He indicated that the City and County have been working together for those improvements to add a transition lane in the eastbound direction. Mr. Hohnbaum detailed three more projects in the works 1) Cannon and Santiago Canyon Road intersection, indicating that the improvements are a long-range project requiring right-of-way acquisition and accumulation of funding for the project which may be two years off; 2) An interim project of installing a right-hand turn lane on the westbound to northbound Caunon direction; and 3) At the 55 freeway, one additional lane is needed in the eastbound direction. Councilmember Dumitru clarified that improvements are needed on the east side of the grade~ Chapman Avenue by Orange Hill Restaurant; and from Hewes west to Prospect; but not the stretch of Chapman Avenue that is in between Orange Park Blvd. and Canyon View, speaking of the grade that goes between the two hills. Mr. Hohnbaum responded that the grade is not in need of improvement due to the downsizing of the project. He explained that there are currently four lanes in that area and no further capacity improvement is needed. PAGE 23 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Mr. Miller stated that the project is providing approximately 95% of the TSIP fees, plus the supplemental of $4.1 million for a total of $6.3 million available to address any traffic improvements needed. Councilmember Dumitru asked about police patrol of the project area after annexation of the area; and clarified that before grading begins, the City is responsible for patrolling the area. He asked how many officers will be required to patrol the area; and whether the plan was to hire more officers when the project is completed. Mr. Miller responded that once the property is annexed into the City, the permits can then be pulled to begin grading. He stated that the fiscal report took the issue of patrol and security into consideration. Police Chief Gustafson stated that the manpower to patrol has been determined at each phase of the project at build-out; however, what is not known is what impacts will occur in the off-road and undeveloped areas. Councilmember Dumitru asked if the fee paid by the Irvine Company upon the 557th home's building permit being issued could be paid to the City earlier for improvements to the Police substation. He explained that as soon as it is annexed, the City becomes responsible for the protection of the area and improvement to the substation would be needed immediately. He suggested the money be paid at the time the first grading permit is issued. Mr. Miller responded that the payment of fees was determined upon phases of the development; however, he indicated that the Irvine Company would be open to changing the time frames, if necessary. Mr. Miller responded affirmatively to City Manager, John Sibley's clarification that the Irvine Company agrees to move up the fee to the issuance of the grading permit. Councilmember Dumitru asked about the National Communities Conservation Program (NCCP) providing police or fire services to the dump areas. He asked, upon development of the project, who would take responsibility of the land. Further, he questioned the incurred costs associated with taking over NCCP areas. Mr. Miller explained that the Orange County Fire Authority and the Sheriff have responsibility for the NCCP areas and further stated that they will remain county territory in the SHII and Area 1 areas. He added that Area 2 may require City and County discussion to determine whether NCCP areas in Area 2, containing the lake and open space areas, would become City responsibility. He explained the Orange County Fire Authority received state monies to protect the wild lands, but the City is not eligible to receive these funds, indicating that the property tax exchange be looked at should the City incur responsibility to patrol these areas. PAGE 24 I I CITY COUNCIL MINUTES October 25,2005 14. PUBLIC HEARINGS (Continued) Councilmember Dumitru asked if the Irvine Ranch Land Reserve, the Nature Conservancy and the NCCP cooperate with one another. Further, he expressed concern that the three agencies would decide they no longer wanted responsibility for the area and would place the burden on the City. Mr. Miller stated that the areas have defined boundaries and their managing agencies cannot place the burden of their oversight on the City. He expressed that the agencies cooperate with one another. The Irvine Company is the holder of the fee title and the conservation easements; and that the Irvine Company gave up development rights to these lands and signed an agreement with the Conservancy through 2012 for the stewardship of these areas. He added that anytime between 2007 and 2012 the land is expected to be turned over to the Irvine Ranch Land Reserve Trust which will take over fee title to the land. Councilmember Dumitru asked Fire Chief Bonacker to clarify the ISO rating, analysis of their data, and if the development is approved, the reclassification, which were issues brought up during the public comments. Chief Bonacker responded that ISO stands for Insurance Services Organization and is a nationwide rating service, rating municipal fire protection. The prime criteria is water system effectiveness and availability followed by the number and types of companies that respond, staffing, dispatching efficiency and effectiveness, record keeping on training. He stated that the ISO, using this criteria to assign points, determined that on a scale of 1 to 10, the City is rated a Class 2. He added that this rating system effects commercial property more than residential and any rating changes would not affect the residential homeowners with regard to their insurance rates. Mr. Miller responded affirmatively to Councilmember Dumitru's clarification that 100% of the costs for the proposed fire station to be built in the project and the related equipment will be paid for by the developer. Councilmember Dumitru stated public comments were made over concern for building in a wild land interface area and requested an explanation of fuel modification plans and zoning modification. He asked for clarification of what the breaks are between the wildland up to the residential area; and whether the City is creating the guideline or using a County, State or Federal guideline. Chief Bonacker explained that development in Wild land Urban Interface (WUI) areas was a result of the Oakland Hills Fire. Legislation came about that new construction in the interface areas would be subject to fuel modification efforts to hopefully eliminate the risk of wild fire moving into residential areas. Zones are designated and direction given as to what is allowed in each zone and how to treat it. He gave the example of a gazebo being installed in an interface area which could not be constructed of flammable material. He indicated that the City's Fire Department's plan checking is consistent with the Orange County Fire Authority's standards. He added that the homeowners associations are expected to follow up on the fuel modification requirements. PAGE 25 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Councilmember Dumitru clarified the fact that wood shake shingles will not be allowed in the project and that the building materials are designated by Fire and Building Codes, as well as some of the homes will be sprinkled in certain zones. Chief Bonacker stated that there exists a 5,000 square foot sprinkler rule. Many of the custom homes larger than this size are automatically sprinkled, and smaller, less accessible homes as well. Councilmember Dumitru asked about paramedic and ambulance services to the areas. He asked about redeployment of assets to the area. Chief Bonacker indicated that the Master Plan study performed earlier in the year identified that there may come a time that a relocation of a transport ambulance or an additional ambulance may be warranted. He added that the City is party to an Automatic Aid Agreement in which the closest aid to an area will respond regardless of boundary lines. Councilman Dumitru noted that many public comments were heard on the issue of evacuation plans; and asked for clarification on that issue. Chief Bonacker responded that a fast-moving wildland fire would be reduced by the fuel modification program and the fire-retardant construction materials of the homes; but that heavy smoke and embers could cause a panic among the residents. There would be a unified command established consisting of Orange County Fire Authority, Orange Police Department, Orange Fire Department and the Orange County Sheriff, adding that any land that is under state responsibility triggers coordinated efforts with the resources of other agencies. Councilmember Dumitru asked how many affordable units were included in the recently approved Mountain Park project and the newly approved project in the City ofIrvine. Mr. Miller responded that no affordable housing units are a part of either of the projects. He added that the East Orange project currently has 128, but if approval of all the units is given, the number could rise to 160. Councilmember Dumitru asked for clarification of the RHNA numbers~who creates them and what are they. Community Development Director, Alice Angus responded that RHNA stands for Regional Housing Needs Assessment. She explained the numbers trickle down from the state based on growth projections and models, variation of different housing types and affordability levels. She added Southern California Association of Governments and Orange County COG examine the numbers; and that Cities do have input based on available land and zoning and areas that are appropriate for growth and future development~generating the RHNA numbers. PAGE 26 I I CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Councilmember Dumitru asked how Mercy Housing was chosen to manage the affordable housing program and whether the Orange Housing Development Corporation was considered. He also asked if the project offered all levels of affordable housing in the low range. Mr. Miller explained that The Irvine Company has past experience with a number of non-profit organizations. He explained that Mercy Housing has done a good job and is a local organization and that The Irvine Company has never dealt with the Orange Housing Development Corporation. He also stated that the very low level is addressed, as well as the moderate levels are addressed, but that no rentals are present. Councilmember Dumitru asked if the $10 million being given to the toll ways was a part of the mitigation to the City~the improvements to the off ramps. Mr. Miller stated that The Irvine Company is required to pay transportation mitigation fees to the TCA. He indicated that The Irvine Company has an agreement with the TCA to make and pay for the improvements in a timely fashion and then get reimbursed for the costs later. Councilmember Dumitru asked if the fiscal consuItant has assessed the fiscal feasibility of the project. He clarified that Mr. Hoffman is a neutral party and analyzed the data with the City's best interest in mind. Stan Hoffman, Stan Hoffman and Associates, indicated that The Irvine Company was requested by the City to hire him to analyze the project, based on the City's budget, to assess the viability of the project. He stated that the fire and police departments had provided their staffing levels, as well as figures for park maintenance and roads. He indicated that he used those facts and figures as part of a fiscal model and calculated the numbers based on the development information provided by The Irvine Company. Mr. Hoffman examined projections of property taxes, based on the agreement provided with the County~and indicated that the City added on a 10% contingency factor to cover uncertainties~ adding that that is an ongoing contingency. He added that some years it would be used to cover expenses and some years it would not be needed, at which time it becomes revenue. Councilmember Dumitru asked if the project could survive off property taxes without commercial sales tax. He asked if the residents will buy locally at Albertson's and Pacific Ranch Market. Mr. Hoffman reported that property tax is the major revenue along with motor vehicle license fees, franchise estimates and gas taxes. He responded that sales at the local markets have increased over the past few years; however, regional shopping will not occur in the area. PAGE 27 CITY COUNCIL MINUTES October 25, 2005 14. PUBLIC HEARINGS (Continued) Councilmember Dumitru asked if there was a possibility that the agreement, allowing the City to receive a higher tax than the County for the increased beds due to the west Orange jail expansion, could be changed, causing a loss of income in property tax to the City. City Manager, John Sibley responded that the property tax split worked out in 2003 was approved by both the Board of Supervisors and the City Council and becomes the new master property tax split for annexation areas in the City, clarifying that the City keeps more tax money locally as opposed to letting the County decide. Mr. Hoffman clarified that the property tax from the west side was not assigned to the east side. He added that it was only on the newly annexed areas. Councilmember Dumitru asked if the homeowner association (HOA) trails may present a conflict in the future between residents wanting exclusive use of them and non-residents wanting to be allowed access. Mr. Miller indicated that the HOA will not be allowed to fence the property and the trails will remain open. He indicated that the CC&R's will prohibit the installation of a fence and if one were constructed, the HOA will be in violation of the CC&R's. Mayor Murphy suggested this item be continued to another date as it was getting late in the evemng. MOTION - Murphy SECOND - Ambriz AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to continue to November 8, 2005 at 7:00 p.m. IS. PLANNING AND ENVIRONMENT - None. 16. ADJOURNMENT - The City Council adjourned at 11: 15 p.m. The next Regular Council meeting is scheduled for November 8, 2005. 'Dec!aration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a regular meeting of October 25, 2005 at Orange Civic Center kiosk, 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 71. hours before commencement of said regular meeting; and available at the Civic ! Center City Clerk's Office. L-- 4<< 7 !v~. MURPHY CITY CLERK PAGE 28