1/24/2006 - Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE CITY COUNCIL ON FEBRUARY 14,2006
CITY COUNCIL MINUTES ORANGE, CALlFORNIA
OF A REGULAR MEETING January 24,2006
The City Council of the City of Orange, California convened on January 24,2006 at 4:30 p.m. in
a Regular Meeting in the Council Chambers, 300 E. Chapman Avenne, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Pastor Ed Trenner, Grace Brethren Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Teresa Smith
1.3 ROLL CALL
PRESENT - Murphy, Cavecche, Ambriz, Dumitru, Smith
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Presentation of Proclamation to Police Services Dog, Titus, and Orange Police Officer
David Pasino, upon Titus' retirement.
Presentation - Acceptance of donation from the Mom's Club of Orange North to help
fund the installation of the fence near the tot lot area at La Veta Park.
Presentation - Acceptance of donation from the Renaissance Lodge and Foundation of
the Sons of Italy to the Main Library Expansion project.
Employee Service Awards presented to:
Gary Sheatz, City Attorney's Office; Pamela Galera, Community Services;
Jan McGovney, Community Services; Anthony Bui, Finance;
Joseph Albers, Fire Department; Valerie Chan, Library; Patricia Roth, Personnel;
Rebecca Serna, Personnel; Brent Taylor, Police; Marilyn Evans, Police;
Sheryn Mauerhan, Police; Joyce Hansen, Public Works
2. PUBLIC COMMENTS - None
CITY COUNCIL MINUTES
January 24, 2006
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
Councilor staff 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 January 5, 2006 and
January 12, 2006 .
ACTION:
Approved.
3.2 Request approval of City Council Minutes, Regular Meeting of January 10, 2006,
and Adjourned Regular Meeting of January 17,2006. (C2500.D.4)
NOTE: Mayor Murphy abstained from voting on the Minutes of January 10,2006.
Councilmember Dumitru abstained from voting on the Minutes of January 17, 2006.
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 December 31, 2005
(C2500.F)
ACTION:
Approved.
CITY COUNCIL MINUTES
January 24,2006
3. CONSENT CALENDAR (Continued)
AGREEMENTS
(REMOVED AND HEARD SEPARATELY)
3.5 Award of Consultant Services Agreement to Integrated Design Services, Inc. (IDS)
for the design and construction management services for Grijalva Park at Santiago
Creek Extension Project, Phase I, design and construction of the Gymnasium/Sports
Center and supporting facilities. (A2100.0 Agr-4829)
SUMMARY: On December 13, 2005, the City Council approved the conceptual master
plan for the City's Grijalva Park extension property and the conceptual architectural plans
for the gymnasium/sports center. Staff is moving forward to hire the projcct/construction
manager that will oversee the design and construction of the first phase of the Grijalva
Park at Santiago Creek Extension Project, which is the Gymnasium/Sports Center. IDS
has been chosen in an amount not to exceed $222,821.
Discussion
Mayor pro tem Cavecche asked about the qualifications of IDS; and wanted to ensure that
in the future, more detailed information would be provided to the Council on award of
bids. She will ask for a criteria to be used on all consulting agreements showing what
departments were involved in the decision and what the ratings were for each bid, and she
asked that a policy be put in place regarding all consulting agreements. She asked if
there would be any problems with time overlap since IDS is also doing work on the
Library until the end of this year.
Councilmember Ambriz asked who would actually oversee the project. He asked about
the rating process on the bids, and suggested that rating sheets have attachment sheets for
rater's comments. He stated that it would be helpful to see comments; and asked if the
rating sheets could be shared with council.
Bonnie Hagan, Interim Community Services Director, stated that the Public Works
representative on the Grijalva team will oversee the contract; and that IDS scored well in
the review process and the timing of this project works well with the timing of the
Library.
City Manager, John Sibley stated that he would like to review the request for review of
the rating sheets of individual raters with the City Attorney.
CITY COUNCIL MINUTES
January 24, 2006
3. CONSENT CALENDAR (Continued)
MOTION - Cavecche
SECOND - Smith
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
ACTION: Approved professional services agreement between the City and IDS in an
amount not to exceed $222,821 for the design and construction management services for
Grijalva Park at Santiago Creek Extension Project; and, authorize the Mayor and the City
Clerk to execute the agreement on behalf of the City.
FISCAL IMP ACT: Sufficient funds exist in the following account:
550-7021-481200-1606 Gym/Sports Center, Proposition 40
$222,821
3.6 CLAIMS (C3200.0)
SUMMARY: The following claim(s) have been received and investigated by the City
Attorney's Office and/or the Risk Manager. After a thorough investigation with the
involved departments, it is the recommendation of the City Attorney's Office that the
claim(s) be denied.
a. Linda Grajeda
b. Jeffrey Trott
ACTION: Denied Claim(s) for damages and refer to City Attorney and Adjuster.
CONTRACTS
3.7 Award of Contract - Bid No. 056-14; D-153 Cambridge Street/Palm Avenue Storm
Drain Inlet Improvement and Windes Drive/Grovewood Lane Drainage Facility
Improvement. (A2100.0 Agr-4830)
SUMMARY: The bids were opened on December 15, 2005. Six (6) bidders responded
to the invitation for bids. The apparent low bidder is B.R. Day Construction, Inc., for
$77,454.00. The Engineer's Estimate is $80,000.
ACTION: Awarded a contract in the amount of $77,454.00 to B.R. Day Construction,
Inc., 1686 E. Palm Drive, Covina, CA 91724, and authorize the Mayor and City Clerk to
execute on behalf of the City.
FISCAL IMP ACT: Funds are budgeted and available in the Capital Improvement
Program in the following accounts:
271-5021-483300-5111 Cambridge/Palm Storm Drain Inlet Improvement $60,000.00
271-5021-483300-5112 Windes/Grovewood Drainage Facility Improvement 20,000.00
CITY COUNCIL MINUTES
January 24, 2006
3. CONSENT CALENDAR (Continued)
3.8 Final Acceptance of Bid No. 056-03; Well 22 Rehabilitation and authorization to
file Notice of Completion with the County Recorder (No staff report reQuired).
(A2100.0 Al!r-4736)
SUMMARY: Bid No. 056-03; Well 22 Rehabilitation. The contractor on said job was
General Pump Company, Inc.
ACTION: Accepted public work improvements, authorize release of Travelers Casualty
and Surety Company of America of Connecticut, Bond No. 104442157, in the amount of
$115,800.00 and authorize the Mayor and City Clerk to execute the Notice of
Completion.
FISCAL IMPACT: None.
3.9 Request to authorize execution of an agreement with Baker & Taylor, Inc. for purcha~
of an Opening Day Collection for the expanded new Main Library facility consisting (
books and audio-visual materials, for an amount not to exceed $434,000.00. (A2100.
Agr-4831)
SUMMARY: With the 2006 opening of an expanded new Main Library building that
will be two and a half times the size of the previous facility, staff anticipates that public
demand for library material will double. The City's successful Library Bond Act grant
application in 2002 included a pledge to purchase substantial numbers of new library
books and audio-visual materials to meet that anticipated demand. Library Bond Act
funding includes $550,000 to purchase, catalog, and process new materials for the
expanded new Main Library/History Center. Approximately three-quarters of this amount
($434,000) is to outsource with a single major book jobber or provider of materials that
draws from a wide variety of publishers. Library staff prepared and issued a Request For
Proposals (RFP), evaluated proposals from three major vendors, and recommends the
vendor which best meets the Library's needs. This recommendation is to contract with
Baker & Taylor, Inc., the low bidder, to purchase, catalog, and process new books and
other materials for the expanded new Main Library/History Center.
ACTIONS: 1) Authorized expenditure no! to exceed $434,000.00 in one-time costs for
the purchase of new library materials for the expanded new Main Library/History Center,
including cataloging, processing, Radio Frequency Identification (RFID) tagging, and
storage until the library opens; and 2) Authorize the Mayor and City Clerk to execute an
agreement with Baker & Taylor, Inc., on behalf of the City of Orange.
FISCAL IMPACT: A total of $434,000.00 is currently allocated and available in
Account 500-2001-481200-9901 - CIP Bldg and Improvements, Main Library Expansion
CITY COUNCIL MINUTES
January 24,2006
3. CONSENT CALENDAR (Continued)
PARKING
3.10 Request for temporary suspension of on-street parking restrictions on Old Camp
Road from Canyon View Avenue northerly to the end of the cul-de-sac; on
Saturday, January 28, 2006, from 6:00 p.m. through 11:00 p.m. (S4000.S.3.1.1)
SUMMARY: The Canyon Hills Neighborhood will host a party on January 28, 2006.
Due to anticipated attendance, it may be necessary to park on the street, which is
currently posted for No Parking Any Time.
ACTION: Approved the request and temporarily suspend the on-street parking
restrictions on Old Camp Road from Canyon View Avenue northerly to the end of the
cul-de-sac; on Saturday, January 28,2006, from 6:00 p.m. through 11 :00 p.m.
FISCAL IMP ACT: None.
RESOLUTIONS
3.11 RESOLUTION NO. 10056 (C2500.M)
A Resolution of the City Council of the City of Orange authorizing application for the
Fiscal Year (FY) 2005/2006 SB 1346 Rubberized Asphalt Concrete Grant Program.
ACTION: Approved.
MOTION - Smith
SECOND - Cavecche
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Item 3.5 was removed and heard separately.
Councilmember Dumitru abstained on Item 3.2.
were approved as recommended.
Mayor Murphy abstained on Item 3.2.
All other items on the Consent Calendar
END OF CONSENT CALENDAR
********
4. REPORTS FROM MAYOR MURPHY - None.
5. REPORTS FROM COUNCILMEMBERS - None
CITY COUNCIL MINUTES
January 24, 2006
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
6.1 Accept resignation from Victoria James from the Community Development Block
Grant Committee, effective immediately; and direct City Clerk to post Notice of Vacancy.
(OR1800.0.8.3)
MOTION - Smith
SECOND - Cavecche
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to accept, with regrets, the resignation of Victoria James from the Community
Development Block Grant Committee.
7. ADMINISTRATIVE REPORTS
7.1 Report from Interim Community Services Director - Award of Bid for Hart Park
Pool Building Renovation Bid No. 045-29, appropriation of funds, and contract amendment
for construction management services. (A2100.0 Agr-4832; 4375.A.1)
SUMMARY: The bids for Hart Park Pool Building Renovation were opened on January 10,
2006 and two (2) formal bids were received for this project. The low bidder was Abeam
Construction, Inc., 267 E. Badillo Street, Covina, CA 91723, in the amount of $632,106. The
current contract with Rengel+Co. Architects will be amended to include construction
management services in an amount not to exceed $19,305.
Speakers
Don Zweifel, DBE Advocate, questioned the award of bid to Abeam Construction.
Eddie Qadar, California Building Evaluation, questioned bidding practices, and asked that the
award of bid be delayed for further evaluation.
Discussion
Bonnie Hagan, Interim Community Services Director reviewed the staff report and pointed out
that the actual amount of contract is $642,106 not $632, I 06.
Councilmember Smith noted that there are important historic aspects to the building such as the
windows and window frames which are noted to be replaced if they cannot be repaired. She
asked who determines if the window frame is repairable. She noted that the staff report states
that removed items will be evaluated and salvaged if they are of historic significance and she
asked how historic significance is determined. She asked for an update on the upstairs section.
She asked if there was an opportunity for replacement of kitchen appliances.
CITY COUNCIL MINUTES
January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
Ms. Hagan responded that staff shared the same concerns and stated that all windows will remain
if there is no damage, and if it is broken it will be replaced. In response to the question of
salvaged items, Ms. Hagan stated that all removed pieces will be evaluated, restored and kept
within supplies to possibly be used at future renovations. There is also a possibility some items
could be donated to OTPA.
Michael Morell of Rengel Architects stated that the glass is considered separately from the
window frames, and when part of a window frame is damaged, only the damaged part will be
replaced. As an update to the upstairs, Mr. Morell explained that there would be no change or
demolition in the walls, and there will be replacement of carpet, floor, light fixtures, and
windows. He stated that the kitchen appliances will be cleaned and refurbished.
Councilmember Ambriz stated that because this is a historic building, he hopes the consultant is
exploring grant opportunities to offset these costs.
Rich Jacobs, Finance Director responded to questions regarding the Fund Balance 511 by stating
that $603,000 is to be appropriated from the 511 Fund and did not show up on a listing because
it had not yet been appropriated.
In response to the two speakers opposing the award of bid, City Attorney, David DeBerry had
reviewed and investigated the complaints and determined that irregularities did not work a
competitive bid advantage for lowest responsible bidder or affect the bid amount. He informed
City Council that they could award the contract to Abeam Constructiclll and in doing so, waive
the bid irregularities.
It was clarified that the DBE form was submitted in the original packet, but it was not complete.
The same consideration would be given to other bidders if the city feels it is a minor mistake in
the bid; and if it is made by the lowest responsible bidder., then the city would ask the lowest
responsible bidder to provide the information to ensure compliance with the bid requirements.
Mayor pro tem Cavecche stated a concern about the bids coming in significantly higher than the
engineer estimates, and she stated that the engineers need to get a better feel of costs; asking that
staff investigate how the engineers come to the bid estimate.
Ms. Hagan addressed a question from Mayor Murphy in stating that this was not bid in one lump
sum to allow for the possibility of only doing one part of the project, and it seemed the best
option was to do it as an add-alternate.
CITY COUNCIL MINUTES
January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
MOTION - Dumitru
SECOND - Smith
A YES - Smith, Murphy, Cavecche, Dumitru
NOES - Ambriz
ACTION:
I) Approved the Award of Bid No. 045-29 Hart Park Pool Building Renovation, to Abeam
Construction, Inc. 267 E. Badillo Street, Covina, CA 91723, in the amount of$642, I 06.
2) Approved the professional services contract amendment between the City and Rengel+Co
Architects in an amount not to exceed $19,305 for the construction management services for Hart
Park Pool Building Renovation;
3) Authorized an appropriation of $603,000 from Fund 511 to 511-7021-481200-0027 (Par
Acquisition & Development - Quimby); and,
4) Authorized the Mayor and City Clerk to execute the contracts on behalf of the City.
FISCAL IMP ACT: Upon appropriation, sufficient funds are available in the following
accounts:
511-7021-481200-0027
310-9645-481200-0027
Hart Park Renovation
Hart Park Renovation CDBG
$603,000
$111,000
7.2 Report from Police Chief - Purchase a total of 14 Police pursuit vehicles from
Wondries Fleet Group per City of Los Angeles Bid No. 0000495569. (C2500.K)
SUMMARY: The Police Department would like to purchase 14 black & white Ford Crown
Victoria Police Pursuit Sedans, including 14 ESP premium care warranties for a total cost of
$359,478 from Wondries Fleet Group per City of Los Angeles Bid No. 0000495569. This
acquisition will replace nine current units and add five more units to the Police Department fleet.
An appropriation of $231,092 from Equipment Replacement funds (including $32,950 for the
cost of emergency equipment necessary for five additional cars) and $161,336 from the General
Fund is requested for the purchase of the 14 vehicles. In addition, an appropriation of $66,000
from unreserved Federal Asset Forfeiture funds is needed to purchase and install radios,
computers and modems, and monthly cost of wireless airtime and decals.
NOTE: Mayor Murphy abstained on this item due to a potential business conflict; and left the
dais.
CITY COUNCIL MINUTES
January 24,2006
7. ADMINISTRATIVE REPORTS (Continued)
Discussion
Councilmember Dumitru asked about the gas tank issues with the Crown Victoria, recognizing
the problems with puncturing in rear end collisions.
Police Chief Bob Gustafson stated that the spare tire will be placed between the trunks entrance
and the gas tank. This is a CHP recommendation to prevent spontaneous fire in an accident.
The CHP consulted with the National Traffic Highway Administration in determining their
recommendation.
Mayor pro tem Cavecche asked about purchasing the vehicles with the City of Los Angeles' bid
City Manager John Sibley stated that there is a need for vehicles. It was not issue of lowest
price, but an issue of availability and the price was just a few hundred dollars higher than a bid
received about 18 months ago.
MOTION - Cavecche
SECOND - Smith
AYES - Smith, Ambriz, Cavecche, Dumitru
ABSENT - Murphy
ACTION:
1. Authorized the purchase of 14 Police Patrol Sedans for the Orange Police Department,
including the ESP premium care 100,000-mile warranty, from Wondries Fleet Group in the
amount of$359,478.
2. Appropriated $458,428 to the following accounts from the unreserved fund balances of
the funds shown below:
100-4021-472102 $161,336
720-5023-472102 $231,092
355-4021-471301 $ 55,000
355-4021-426700 $ 5,000
355-4021-427800 $ 3,000
355-4021-447600 $ 3,000
Police Vehicle Replacement, General Fund
Police-Vehicle Replacement, Equip. Replacement Fund
Police-Equipment, Federal Asset Seizure Fund
Police-Other Professional Services, Asset Seizure Fund
Police-Other Contractual Services, Asset Seizure Fund
Police-Accessories, Asset Seizure Fund
3. Authorized the City Manager to declare the nine replaced vehicles surplus and dispose of
them at an auction.
FISCAL IMP ACT: Unreserved fund balances are available for the purchases. After
appropriation, funds will be available.
CITY COUNCIL MINUTES
January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
7.3 Report from Housing Manager - Second Amendment to Disposition aud
Development Agreement (DDA) with Orange Housing Development Corporation (OHDC)
regarding the housing project on West La Veta Avenue. (A2100.0 Agr-4123.2)
(see Redevelopment Agency Minutes Item No. 7.1)
SUMMARY: OHDC has completed the construction of an affordable six-unit senior rental
housing project known as the Orange Rotary Senior Plaza. The estimated cost of the project was
$1,297,815. The actual cost was $904,450, which was funded with Agency Housing Set-Aside
loans totaling $300,156, a City HOME grant of $484,294, and a Rotary Club of Orange
contribution of $120,000. Given the project's cost savings of $393,365, OHDC is now asking
that the funds already expended by the Agency and City remain as permanent financing. Staff is
proposing a Second Amendment to the DDA to reflect these changes.
RESOLUTION NO. 10052
A Resolution of the City Council of the City of Orange approving a Second Amendment to
Disposition and Development Agreement by and among City of Orange, Orange Redevelopment
Agency and Orange Housing Development Corporation Relating to La Veta Avenue between
Olive Street and Lemon Street and making certain findings.
Discussion
Mayor pro tem Cavecche had asked for a balance sheet of all funds in order to see what has been
set aside for Federal Housing Home Grants to determine what is in the account and what the
predicted expenditures have been for some of the other low income housing costs.
MOTION - Ambriz
SECOND - Dumitru
AYES Smith, Ambriz, Murphy, Cavecche, Dumitru
ACTION:
Approved Resolution No. 10052
FISCAL IMP ACT: The unexpended Housing Set-Aside balance of $358,539.32 appropriated to
this project will be made available for future affordable housing projects. The City Council
authorized the transfer of the unexpended HOME balance of $154,825.91 for this project to the
Hoover Wilson II project on December 13,2005.
CITY COUNCIL MINUTES
January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
7.4 Report from City Attorney - City Council policy for reimbursement of expenses
incurred in performing official duties. (C2500.D.6)
SUMMARY: As part of newly enacted legislation requiring city council members to receive
ethics training, city councils are required to adopt a written policy that specifies under what
circumstances and procedures city council members can be reimbursed for expenses incurred in
the performance of their official duties. In addition, the new legislation requires council
members, in limited cases, to provide brief reports on meetings attended. While the City has a
reimbursement policy in the Administrative Manual that meets most of the requirements of the
new legislation, it has never been formally adopted by the City Council at a public meeting.
Minor modifications to the policy were made to meet the requirements of the new law.
MOTION - Ambriz
SECOND - Cavecche
A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
ACTION: Adopted Section 4.13, Travel and Business Expense Reimbursements, of the
Administrative Manual.
FISCAL IMP ACT: None.
8. REPORTS FROM CITY MANAGER - None.
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 17-05 (SECOND READING) (Continued from Januarv 10. 2006)
(A2100.0 Agr-4818)
An Ordinance of the City Council of the City Of Orange approving an Amended and Restated
Development Agreement by and between the City of Orange and Orange City Mills Limited
Partnership, A Delaware Limited Partnership, for modification of previously approved expansion
uses for The Block At Orange on property generally located west of The City Drive between
Chapman Avenue and Metropolitan Drive.
Discussion
Mayor pro tem Cavecche asked Mr. Brad Beyer, with the Police Department, about his
impressions and opinions of the site after his tour of such. She stated that it did not seem that all
of the lighting needed to be done at the same time, and some could be done sooner, and not tie in
with the completion of the parking structure. She stated that there is a need for security cameras
on the entire east side of the facility as well as the parking structure.
CITY COUNCIL MINUTES
January 24,2006
9. LEGAL AFFAIRS (Continued)
Brad Beyer stated that he and several others from the City went out to the site. He states that
uniformity is needed in the parking lot for safety and to reduce crime. Incidentally, the areas in
which the light was low is where property crimes have occurred. Mills was very receptive to
boosting light levels in those areas. He will meet with lighting consultants. Regarding the
lighting on the east side of the parking lot, the lighting was very low as well as the area near
construction of the offramp.
City Attorney, David DeBerry addressed the lighting and security cameras and stated that under
the proposed language, the lots on the east side will have to be lighted by January 1, 2007. Thc
lots along Metropolitan Drive that are being impacted by the construction will not have to be
lighted until the construction ceases. He clarified that per the original agreement, Mills is still
responsible to bring the lighting up to the minimum requirements.
Councilmember Dumitru asked if the areas that are proposed for shared parking had been
checked for meeting the one-candle requirement.
Mr. Beyer responded that the lighting for the proposed shared parking did not meet the one
candle requirement.
Councilmember Ambriz asked why the lighting which was agreed to in the original agreement
has not been taken care of.
City Manager, John Sibley responded that the city now has the opportunity to sign a
development agreement that ensures that the lighting and security will be brought up to standard.
The cameras are for the entire area and will require the concurrence of Police Chief and the City
Manager. A certified lighting consultant will perform a study, as well as a peer review from an
equally certified expert in order to review the lighting in order to reach a level of confidence that
the job was done to a specific standard.
Councilmember Ambriz suggested that it would be good to get input from community members,
particularly those who frequent The Block.
Councilmember Dumitru asked for confirmation that the cameras will have capability to work in
low light. He also asked if the security cameras will help to reduce the number of officers
needed at The Block - or is it to be used more as a tool to capture and prosecute.
Police Chief, Bob Gustafson confirmed that the cameras would have the capability to work in
low light. He stated the cameras are intended for possible reduction in police force at The Block
as well as a tool to capture and prosecute successfully.
CITY COUNCIL MINUTES
January 24,2006
9. LEGAL AFFAIRS (Continued)
Mayor pro tem Cavecche stated that if OCT A is not maintaining high level of lighting, the city
needs to make sure they do. She stated that the wording needs to be changed in the Agreement
to state that it will be the Police Chief AND the City Manager not OR. In reference to the
financial district, she stated that using 2005-2006 as a baseline of costs may indicate that the city
is happy with three quarters of a million dollars as police costs at the Block, which is not a
baseline she is happy with.
Councilmember Smith concurred that the cost for security at The Block is way too high and also
agrees that community input would be beneficial. She stated that the fact that police security,
without lighting and security cameras costs about $760,000 per year is evidence that something
has to be done as soon as possible to cut costs. She stated that she is not willing to wait until
January I, 2007 to implement those improvements, and incur costs again of $760,000. She
stated that if the baseline can remain at that amount with additions of cars, the deck, and
condominiums, it will somehow balance out if the amount does not go higher. She is extremely
concerned about the high cost of security because it comes directly out of the sales tax revenue.
She is in favor of bringing the lighting equipment up to the higher standard that it was supposed
to be at when the project was approved immediately and the camera equipment in place as soon
as possible.
Councilmember Dumitru inquired about a budget for extra police services at The Village.
Mr. Sibley stated that there is no line item budget for The Village. The police respond as
needed.
Speakers
Mike Merino, Address on File, stated a concern in hiring consultants to study the lighting and
cameras.
Discussion
Mr. Sibley stated that the lighting study will be paid for by The Mills. The peer review study
will be paid for by the city.
Counci1member Ambriz asked about a report showing that there had been a decrease in yearly
expenditures at The Block to about $600,000 a year. He asked for clarification on that at a future
date.
Mr. Sibley stated that he will look into that but it has been verified with the Finance Director
that the average has been between $740,000 and $760,000 over the last five years in police
protection at The Block. He stated that a big reason The Block was first completed was in an
effort to revitalize that area. The sales tax from this project is around $1,300,000. Taking all
expenses from that amount, the city currently nets a little over $15,000 to the General Fund and
$550,000 to the Redevelopment funds. He stated that the new development phase of The Block
CITY COUNCIL MINUTES
January 24, 2006
9. LEGAL AFFAIRS (Continued)
is solely market driven, with no subsidy from the city, and no tax increment from the city. The
new development will pay for itself and pay for any additional policing costs because of the
Financing District. There will be additional sales tax, and property tax available to the city. The
current property tax split with The Block will expire in 2011 or at $6,400,000 (whichever comes
first), and then the entire amount of property tax will come to the city. The current property tax
subsidy will expire in 2019 and the entire amount will accrue to the city. The long term potential
for the area is tremendous and it has revitalized the surrounding area.
Mayor Murphy stated that at the time of the original approval, nobody intended that there would
be such an expense for police security. Whether the new agreement occurs or not it does not
change the fact that $760,000 will continue to be paid to maintain security there. With the new
agreement, the situation is better because it gives additional benefits to the city on the property
tax side, potential for sales tax and the opportunity for better quality of living environment and
additional sources of shopping and retail with no additional encumbrances to the city.
Additionally it puts a cap on what the city will spend based on a mechanism in place with
the Financing District. The Block is a big cause of synergy in the area. There is a high level of
dollars invested privately in that area. He stated that he could only support the agreement with
some modifications. I) The agreement needs AND in place of OR as discussed earlier. 2)The
deadlines for lighting and camera installation are not extended to the time of the new
construction. The lighting in areas unaffected by construction or OCT A activities need to be
remedied within a normal time period that any entity/organization would be required to make
that change. 3) A more expedited plan is needed for introducing some digital cameras on a test
basis for final analysis.
He stated that the issues regarding the lighting and cameras improvements and additions should
happen regardless of additional agreements, and should not be constrained or enhanced because
of this particular agreement.
Mayor pro tem Cavecche stated that she would need to see the baseline dropped to $500,000 in
order to support the agreement.
City Attorney, David DeBerry in response to a question from Mayor Murphy, stated that based
on the Financing District methodology of payment Mayor pro tem Cavecche's request to drop
the baseline to $500,000 is legally enforceable. Financing Districts can be utilized to pay police
costs, and the amount can be set by agreeing parties
Elizabeth Link from the Mills agreed with the changes in wording from OR to AND. The
lighting consultant has already been hired and she will be scheduling a meeting with Mr. Beyer
to upgrade the lighting. It will take some time to design, approve, bid and build. The matter
with OCTA has been resolved and that can now get expedited. She stated that Mills cannot
afford to put a cap of $500,000 on the baseline for police services.
CITY COUNCIL MINUTES
January 24,2006
9. LEGAL AFFAIRS (Continued)
Ms. Link stated that the language can be changed to state that Mills will use the best efforts to
improve the lighting level as soon as reasonably possible, no later than January 1, 2007. This
also requires design of upgrade, approval, bid and construction. Regarding the digital camera,
Mills will work in the areas that are not impacted by construction first, and one of those areas
could be used as a test area. Ms. Link stated that if they can work with the Police Chief on this,
it can be done in stages.
Ms. Link re-stated that the if the City Council wants to move forward with requested cap of
$500,000 on police services, Mills will opt out of the agreement, and all other agreements would
end at that time. She states that it is a financial consideration that Mills cannot bear. She stated
that the camera equipment should be bought all together to assure the system is well integrated.
Mills will use best efforts to proceed with the lighting in existing lots as soon as the design is
approved and the contractor has been hired. Some lighting will be put in the south lot very
quickly, and some temporary lights will be put up right now, and the lot will also be re-striped.
Councilmember Smith asked if Mills could meet the City halfway on the cost of police
protection.
Ms. Link stated that she believes the increase in property taxes received by the project going
forward is significant, and Mills cannot accept any additional costs.
Councilmember Dumitru in reference to the Financial District, asked if it is the sole burden of
the Mills Corporation to make those payments or is it passed down to tenants and homeowners.
Ms. Link stated that it is a property assessment that will be passed on to the property owners and
it is split between the tenants on a lease by lease basis.
City Attorney, David DeBerry clarified that the property owner is the party obligated to pay the
cost of the Financing District, and as in any financing district the developer or property owner
may determine, based upon market, if they can pass the cost down to the tenant.
Mr. Sibley, in response to Mayor Murphy, clarified that the threshold is a hard number based on
2005-06 police costs and at the end of the fiscal year the base will be known and any dollar
amount over the base amount will be applied to the Assessment District.
Ted Reynolds, Assistant City Attorney,. reviewed changes made to the agreement. 1) The
language was changed from OR to AND. 2) Open parking lots that are not affected by the
construction of the AMC parking structure will meet the minimum illumination standard as soon
as reasonably possible, but not any later than January 1, 2007. 3) The developer, at its cost will
install a on-site mock-up of the proposed video camera system. Prior to approval of the plans,
the mock up must be installed, giving the City Manager and the Police Chief 10 days to review
it and approve or disapprove. The camera system will not be completed until the completion of
the parking structure, and the parking structure cannot be used until the camera system has been
completed.
CITY COUNCIL MINUTES
January 24, 2006
9. LEGAL AFFAIRS (Continued)
Mr. Sibley stated that he would like the camera system in as soon as reasonably possible. With
the development agreement, this is an opportunity to get a state of the art camera system in to
meeting the security measures. The mock up, the specs, the bidding, will take several months.
The deck needs to be completed, and the security cameras in before occupancy of the parking
deck. He is satisfied with the language.
Police Chief, Bob Gustafson stated that his preference is to have the camera system in as soon as
possible. When talking to the representative from Mills, he is not clear as to when the deck will
be completed. He would like to see something go in before completion of the deck.
Councilmember Ambriz states that proposed agreement implies that the need for security will be
fulfilled by the developer. He asked if the in-house security provided at The Block is up to par.
Police Chief, Bob Gustafson stated that police services will be provided by the Orange Police
Department, and the developer will look at industry standards regarding security personnel
qualifications and the number of security personnel needed. Regarding the quality of the
current security provided by the Mills, the Police Chief stated that it could be improved. It is a
collaborative effort between the Police Department and The Block security.
Counci1member Dumitru asked for clarification that the cameras will be installed and operational
when the parking structure is complete. Because there is no particular date for completion, he is
concerned installation will be pushed back, and the City will continue to pay for police services.
The agreement states that Assessment District will not commence any earlier than the
completion of the construction of the parking structure. For another fiscal year, the city will
incur additional costs for policing.
Mr. Sibley clarified that the city will continue to pay for the current arrangement at The Block
until redevelopment occurs. With redevelopment, the police costs will be assessed against the
Assessment District. The language in the development agreement does state that within 60 days
of the agreement Mills will begin the bid process. The language is written so that cameras have
to go in for project to be complete. If the development agreement goes forward, and based on
the language in the agreement, the city will assess the additional police costs over and above the
2005-06 base to the Assessment District. However, the Assessment District cannot begin until
proj ect is started.
Mayor pro tem Cavecche stated her appreciation to Mills and staff for the effort put into this.
She appreciates how the area has improved from what it was. She states that police costs have
always been an issue for her. There should be a benchmark for the revenue for what the city is
paying and what the development brings in. It is not where she would like to see it. The issue
for her has always been the ratio of cost vs. revenue
CITY COUNCIL MINUTES
January 24, 2006
9. LEGAL AFFAIRS (Continued)
Councilmember Smith stated her agreement with Mayor pro tem Cavecche regarding the costs of
police services. She was hoping to come down to around $625,000 and split the difference but
she hopes that this comes out as a win-win with more retail space. She feels $750,000 on police
costs is high but she recognizes that police cost is not the only monetary figure in this project.
There is potential for this site. It is key to development in the west. She stated that it is
imperative that the lighting be corrected as soon as possible, and that the camera system is
installed.
Mayor Murphy stated that with or without the new agreement, the city is responsible for health,
safety and welfare at The Block. It's a safety issue. Looking at it from a business perspective,
this is an opportunity to increase sales tax, and property tax. It is a continuance of an investment
in an area that has shown synergy since The Block first opened. It has helped several
businesses in the surrounding areas and drawn other business to the area. Secondly, in this
agreement, an absolute cap can be put on the amount of money spent on police safety at The
Block. He supports the agreement with assurances from staff and The Block that there will be a
managed cap on the expense, and in looking at the future increase in tax increments going to the
City of Orange.
Councilmember Dumitru expressed disappointment with the negative responses from Mills. He
stated that setting a number to be reimbursed to the city to make up for differences for policing is
a good idea; but he still feels it is a very high amount. He would be interested to know the cost
to Irvine to police The Spectrum, as well as other large shopping areas. He is disappointed that
cameras cannot go in right now. Everything seems to be tied to completion of the parking
structure. He expressed hope that everything is still on target for January 1, 2007.
Councilmember Ambriz stated that this project was a vision of a past council with a goal of
making the west end the economic engine that it should be. It is questionable if that has been
achieved at The Block itself. But looking at the surrounding areas, it has absolutely been
successful. $750,000 a year breaks down to $125 per hour based on a 16 hour day, 365 days a
year, which is a small investment. He stated that Mills has done a good job listening to what the
city needs and wants. The security cameras and security staff trained is an investment in our city
with a goal of bringing in new business.
Council thanked staff for hard work and diligence, the Police Chief and Brad Beyer for assuring
a safe environment at The Block, and City Manager, John Sibley, and the City Attorney.
CITY COUNCIL MINUTES
J anllary 24, 2006
9. LEGAL AFFAIRS (Continued)
ORDINANCE NO. 17-05
An Ordinance of the City Council of the City Of Orange approving an Amended and Restated
Development Agreement by and between the City of Orange and Orange City Mills Limited
Partnership, A Delaware Limited Partnership, for modification of previously approved expansion
uses for The Block At Orange on property generally located west of The City Drive between
Chapman Avenue and Metropolitan Drive with the substitute language mutually agreed upon and
submitted to council.
MOTION - Murphy
SECOND - Ambriz
AYES - Smith, Ambriz, Murphy
NOES - Cavecche, Dumitru
Moved that Ordinance No. 17-05 be read by title only; and same was approved and adopted by
the preceding vote; with changes as discussed.
MOTION - Murphy
SECOND - Ambriz
AYES - Smith, Ambriz, Murphy, Dumitru
NOES - Cavecche
Authorized and directed City staff to undertake proceedings for the formation of a Financing
District for the purpose of funding the cost of salaries and benefits for police personnel services
incurred or to be incurred by the City during Fiscal Year 2006-07 at The Block at Orange and
subsequent fiscal years in excess of what it costs the City to pay salaries and benefits for police
personnel services assigned to the Project Site during Fiscal Year 2005-06.
10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
11. RECESS TO CLOSED SESSION
The City Council recessed at 9:30 p.m. to a Closed Session for the following purposes:
a. Public Employee Performance Evaluation pursuant to Government Code Section 54957
Title: City Manager
b. Conference with Legal Counsel - Anticipated Litigation
Significant exposure to litigation pursuant to Government Code Section 54956.9(b) - One C2
c. 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.
CITY COUNCIL MINUTES
January 24,2006
7:00 P.M. SESSION
12. PUBLIC COMMENTS
Patrick Hardy, Chapman University Student, asked the Council to join the National League of
Cities.
13. PUBLIC HEARINGS
13.1 APPEAL NO. 0504-05; AN APPEAL OF PLANNING COMMISION APPROVAL
OF CONDITIONAL USE PERMIT NO. 2540-05, MINOR SITE PLAN REVIEW NO.
040S-05, DESIGN REVIEW COMMITTEE NO. 4031-05 AND DENIAL OF VARIANCE
NO. 2151-05, MILLER AUTOSPORTS - APPELLANT CRAIG MILLER.
(A4000.0 APP-504-05)
Time set for public hearing to consider an appeal, by Craig Miller, of the Planning Commission's
approval of Conditional use Permit No. 2540-05, Minor Site Plan Review No. 0408-05 and
Design Review Committee No. 4031-05 granting a request to establish a Used Car Sales
business including related site improvements. Additionally, an appeal of the Planning
Commission's denial of Variance No. 2151-05 related to a request to deviate from the City's
Sign Regulations to allow for a pole sign in excess of the maximum height, to exceed the
maximum number of freestanding signs and to exceed the minimum separation requirements for
freestanding signs on the same parcel located at 1935 East Chapman Avenue.
NOTE: This project is categorically exempt form the provisions of the California Environmental
Quality Act per State CEQA Guidelines Section 15303 (Class 3 - Exemption).
NOTE: Mayor Murphy abstained on this item due to a potential business conflict; and left the
dais.
Reason for Appeal: "The Commission failed to consider the unique nature of the property
directly adjacent to the Chapman off ramp of the 55 Freeway. Due to property constraints the
additional height and sign are needed for visibility. Options are limited for utilizing the most
beneficial and visible locations for signage, thereby creating a land-related hardship. At least
four neighboring properties, under similar zoning classification, already use pole signs and
exceed height limits. Abandoning Chapman drives in public right-of-way is a city request, not
applicant's responsibility. Requiring 8-12 foot King Palms significantly exceeds code required
24 inch box. Both conditions create financial hardship for applicant."
Discussion
Alice Angus, Director of Community Development reviewed the Staff Report and the reason for
the appeal. Planning Commission approved conditional use permit with conditions attached to it.
Planning Commission denied additional signs and sign height. The applicant is appealing the
variance regarding signage. Additionally, a condition related to the application required the
applicant to fill in the curbs and driveways along Chapman Ave. Although applicant has done
that work, he feels it should be a city expense and is asking for reimbursement or relief from that
condition.
CITY COUNCIL MINUTES
January 24,2006
13. PUBLIC HEARINGS (Continued)
Mayor Pro tem Cavecche asked for clarification on the requirement for applicant to fill in the
curbs. She also asked if there is an easement issue with Wayfield. Appellant mentions a
redevelopment program. She asked if there is a program for redevelopment in the area of this
business.
Alice Angus, Director Community Development stated that the condition to fill in the curbs
came from Public Works due to the proximity to the 55-freeway, and the location of the curb
cuts. Public Works requested that the fill-in as a safety and security measure for use as a car
dealership. There is no easement issue with Wayfield.
Jim Reichert, Economic Development Director stated that there is a redevelopment program
known as the West Chapman Reinvestment Program and the boundaries for participation in that
program are the city limits on the west and Batavia Street on the east.
Discussions have taken place with Mr. Miller and he has been told that if, in the future, he would
begin to sell new cars, there is an Automobile Dealership Rehabilitation Program that could
potentially apply to this property.
Councilmember Dumitru stated that he saw no problem with the 15 foot sign, considering the
size of other signs in the area. He asked for the size on the secondary sign. He also asked if the
requirement to fill in curbs was also required of the Arco Station on Katella when that facility
was remodeled.
Alice Angus, Community Development Director stated that the secondary sign is 4 feet high and
6 feet in width and is considered a free-standing sign. She stated that Arco was not required to
fill in the curbs on Katella, as it was a different configuration.
Councilmember Ambriz asked how many businesses have actually taken advantage of the West
Chapman Reinvestment Program. He inquired as to the size of other signs on Chapman such as
the Midas sign, and was informed that it is comparable to what appellant is asking for. It is
important to him that the city be business friendly and work with the small business owners in
order for them to be successful.
Jim Reichert, Economic Development Director stated that no businesses have taken advantage of
the West Chapman Reinvestment Program.
Peter Wittingham, Curt Pringle and Associates 2400 E. Katella Avenue, Anaheim stated that he
has been working with Mr. Miller throughout the planning process. He reviewed the history of
the purchase of the property and upgrade of the property. There is an existing sign pole on the
southeast corner of the property, and Mr. Miller would like to reface the existing sign for that
sign pole. There are several challenges for this property. It is a severely landlocked site,
severely restraining what can be done on the property after the required set backs and
landscaping factored in. It is obscured by the Self Storage facility located between the off-ramp
and the property. A standard code compliance sign would significantly impair Mr. Miller's
CITY COUNCIL MINUTES
January 24,2006
13. PUBLIC HEARINGS (Continued)
ability to fully market the site, and is the reason for request of a variance. At a height of 25 feet,
the sign will not be out of character as there are at least 3 to 4 signs taller than this less than 500
feet from the site. Mr. Miller is also seeking a second sign at the southwest corner of the site
for frontage on Chapman.
Craig Miller, 12236 Circula Panorama, Santa Ana, stated that he has made every attempt to be a
good neighbor and make things nicer. The driveway abandonment issue was brought to him by
the city and the plans have been made around that, but bollards would have accomplished the
same goal with the addition of landscaping in front of it. The driveways have been filled in, in
order to progress on the project. The curb fill-ins leave the facility with no access whatsoever to
or from Chapman and the property must be entered by a small easement from the storage facility.
He is asking for a reimbursement for the costs incurred in removing the driveways. He stated
that early on he asked for use of the West Chapman Reinvestment program and it could possibly
have been used for this. The conditions state that palm trees had to be palm trees at 8-12 feet,
which is a very expensive tree. He would like to put in 24-inch box trees of any variety. Mr.
Miller clarified that he has no plans of putting in a new car dealership, as the property is not big
enough.
Councilmember Smith asked about the neighboring land and asked if he had thought of
negotiating use of that land with the adjacent property owners. She also asked if he was aware
of the code requirements for signs and landscaping that may be binding on the property before he
purchased the property.
Mr. Miller stated that he has use of a little 10x15 strip on Wayfield in addition to an easement.
Neighboring landowners have said he could landscape some of that property. With regard to
code requirements, Mr. Miller stated that there is an existing sign pole and an existing sign
cabinet, and he thought he could utilize existing pieces. The sign pole has never been taken
down.
Councilmember Ambriz stated his desire be a good partner on this project. He supported the
idea of the Applicant having discussions with neighbors to see if they can help Mr. Miller with
the property issues in some way.
Mr. Reichert stated that the amount of money in the West Chapman Redevelopment Program is
$500,000 and has not been used. The program started in 2002 and rolls over every year, with no
dollars added to it. There are components to the program, including matching funds of 50%for
signage and landscaping, and the match can be forgiven over time. There is also a straight loan
component. He clarified that the intention of the West Chapman Reinvestment Program is to
provide assistance to business and it would be difficult for a business to apply for work that has
already been done.
CITY COUNCIL MINUTES
January 24,2006
13. PUBLIC HEARINGS (Continued)
Councilmember Dumitru asked about other signs in the area, particularly the Chapman Storage
sign, in relation to the 20 foot sign.
Ms. Angus stated that code allows for one free standing sign of 15 feet, so the applicant would
be varying from height, size and quantity along Chapman. More than one sign and a taller sign
is allowed by a variance.
Discussion took place regarding the West Chapman Redevelopment Program and the possibility
of expanding that program for use of the small business owner. There have been initial
discussions about the possibility of expanding the limits of the program to include the entire
redevelopment area. Mr. Reichert stated that although $500,000 is a lot of money it was not
enough to entice one or two potential applicants to take advantage of it.
Councilmember Ambriz suggested discussion as a council to look into the possibility of
increasing funds. He also noted that the Adrays sign on West Chapman is in need of attention.
Mayor pro tem Cavecche stated that she is fine with the signs, that businesses need to be seen.
The curbs are already done, and the fill-in was required as a safety issue.
City Attorney David DeBerry stated in order for the city to reimburse for the curb fill-in, the
expenditure would have to serve some public purpose or it may be considered a gift of public
funds. He stated that the appellant had the opportunity to appeal the requirement before he
actually installed the fill-in.
Councilmember Smith suggested she would be in favor of the appellant having two signs on the
property but she is not in favor the tall sign. The business is not right next to the freeway, and
the business is not dependent on freeway business. It is a busy intersection with a lot of traffic.
She would be in favor of the 4x6 sign as well as another sign as part of the variance, but not up
to 26 feet. By the fact that the curb has already been built it indicates the applicant's intention to
pay for it. She stated that she would leave the decision on the trees to the applicant.
Councilmember Dumitru stated that he has no problem with the requested signage. The large
sign will actually be dwarfed by other signs on the street. He supports the request on the trees;
but cannot support the reimbursement of the cost for the curbs based on the information from the
City Attorney.
Council Action
MOTION - Cavecche
SECOND - Ambriz
A YES - Smith, Ambriz, Cavecche, Dumitru
ABSENT - Murphy
Moved to deny the appeal of Condition No.1 0, which requires the removal of driveways along
Chapman Avenue, and Condition No.7, noting that the applicant is free to put in any 24 inch
box tree.
CITY COUNCIL MINUTES
January 24,2006
13. PUBLIC HEARINGS (Continued)
MOTION - Cavecche
SECOND - Dumitru
AYES - Ambriz, Cavecche, Dumitru
NOES - Smith
ABSENT - Murphy
Moved to approve the request for a Variance to deviate from the City's Sign Regulations to
allow for a pole sign in excess of the maximum height, to exceed the maximum number of
freestanding signs and to exceed the minimum separation requirements for freestanding signs on
the same parcel.
14. PLANNING AND ENVIRONMENT - None
15. ADJOURNMENT
The City Council adjourned at 10:05 p.m. The next Regular Council Meeting is scheduled for
February 14, 2006.
Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a regular
meeting of January 24, 2006 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 to members of the public at
least 72 hours before commencement of said regular meeting; and available at the City Clerk's Office.
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CITY CLERK
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MAYOR