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5/22/2007 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON JUNE 12,2007 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING May 22, 2007 The City Council of the City of Orange, California convened on May 22, 2007, at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:30 P.M. SESSION 1. OPENING 1.1 INVOCATION Given by Pastor Tye McClain, Rock On Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Mayor Carolyn Cavecche 1.3 ROLL CALL PRESENT - ABSENT - Smith, Murphy, Cavecche, Dumitru, Bilodeau None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Presentation given on City's electronic utility billing options; and certificate given to Philip Arnold, Orange resident, for being the first to sign up for the program. Presentation by Stu Livingstone, Community Foundation, recognizing support for the Foundation Games Track and Field Meet. Presentation from Cindy Reed, President, Orange Dog Park Association, of annual status report. She submitted petition requesting improvements at the Dog Park and invitations to second year anniversary celebration on June 16. (Marie Knight, Community Services Director, provided an update on the status of Y orba Park and the Dog Park). Employee Service Awards presented Mayor Cavecche announced the COPS Expo on June 2 at The Block. 2. PUBLIC COMMENTS - Mary Dargatz, address on file, requested that the residents in the surrounding neighborhood ofYorba Park receive more information on the status of the Park. Katie Short, address on file, spoke on her request for donations to help with educational trip. P~(Jp.1 CITY COUNCIL MINUTES May 22, 2007 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 May 3 and 10,2007. ACTION: Approved. 3.2 Request approval of City Council Minutes, Regular Meeting of May 8, 2007. 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 April 30, 2007. ACTION: Approved. 3.5 Receive and File the Investment Oversight Committee Report, period ending April 30, 2007. (ORI800.0.27.16.1) ACTION: Approved. AGREEMENTS 3.6 Amendment No. 10 to Cooperative Agreement No. C-9S-986 between City of Orange and Orange County Transportation Authority (OCTA). (A2100.0 Agr- 2397.10) SUMMARY: The Amendment No. 10 to Cooperative Agreement between Orange County Transportation Authority and City of Orange amends the Combined Transportation Funding Program Allocations. ACTION: Approved Amendment No. 10 to Cooperative Agreement No. C-95-986 and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: None. PAGE 2 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) (REMOVED AND HEARD SEPARATELY) 3.7 Three-year Entertainment Services Agreement with Metzger Enterprises, Inc. for audio, lighting, staging, and electrical for the 3rd of July Celebration, Treelighting Ceremony and Candlelight Choir Procession. (A2100.0 Agr-5074) SUMMARY: The three-year Agreement includes a scope of services for audio, lighting, staging, and electrical at 3rd of July Celebration, Treelighting Ceremony and Candlelight Choir Procession and miscellaneous programs for a total compensation not to exceed $182,257.33. Discussion - Councilmember Murphy wanted to ensure that Mike Short was in concurrence with this agreement. Mr. Short indicated he had been included in all discussions and was in support of the agreement. MOTION - Murphy SECOND - Cavecche AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to approve agreement with Metzger Enterprises, Inc. and authorize Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: 2007, as follows: 100-7015-423500 100-7015-427800 The following funds are available in FY 06-07 to cover 3rd of July Other Rentals and Leases Other Contractual Services $ 5,000.00 $ 29,110.82 Upon approval of the FY 2007-08 Budget, funds will be available to cover Treelighting 2007 and yd of July 2008, as follows: Treelighting 2007 100-7015-427800 Other Contractual Services yd of July 2008 100-7015-423500 Other Rentals and Leases 100-7015-427800 Other Contractual Services $ 10,395.10 $ 6,000.00 $ 31,017.30 (REMOVED AND HEARD SEPARATELY) 3.8 Project No. 6304, Award of Consultant Services Agreement to Iteris, Inc. for traffic signal coordination services on various arterial highways. (A2100.0 Agr- 5075) SUMMARY: The contract authorizes the Consultant to complete a traffic signal coordination program to improve traffic flow and minimize delay at 45 intersections along four arterial highways in the City. Discussion - Mayor Cavecche wanted to ensure that the funds negotiated with The Irvine Company for Chapman Avenue were being used. PAGE 3 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) City Traffic Engineer, Tom Mahood indicated that The Irvine Company funds will be used for the construction of the infrastructure; and that this agreement is for signal programmmg. MOTION - Cavecche SECOND - Bilodeau AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to award contract in the amount of $88,966.00 to Iteris, Inc., 1515 South Manchester Avenue, Anaheim, CA 92802, and authorize the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are available in the following account: 272-5032-483100-6304 GasTax $95,000 (REMOVED AND HEARD SEPARATELY) 3.9 First Amendment to Services Agreement between the City of Orange, the Orange Redevelopment Agency and the PM Group, Inc. for the design and printing of the Orange Progress City newsletter/Community Services recreation brochure for FY 2007-08. (A2100.0 Agr-4692.B) (See Related Orange Redevelopment Agency Minutes Item 3.3) SUMMARY: The First Amendment to Services Agreement memorializes the City and Agency's exercise of their option to extend the term of the original agreement and authorizes the consultant to design, oversee printing and coordinate delivery of the next four quarterly editions of the Orange Progress. MOTION - Bilodeau SECOND - Smith AYES - Smith, Murphy, Cavecche, Bilodeau NOES - Dumitru NOTE: Mayor pro tern Dumitru voted No as he wanted to wait until the status of the FY 2007-08 budget was known before taking action. Moved to approve the First Amendment to Services Agreement between the City of Orange, the Orange Redevelopment Agency, and the PM Group, Inc. for the design and printing of four quarterly issues of the Orange Progress in an amount not to exceed $111,647 and authorize the Mayor and City Clerk to execute the agreement on behalf of the City. PAGEd CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: Sufficient funding has been included in the proposed FY 2007- 2008 budget through the following sources: General Fund: $61,647 (this amount includes $40,000 contribution from Waste Management) 100-0201-426600-7009 (City Manager's Office-Publicity & Advertising-Orange Progress); and Redevelopment Agency: $50,000 - 940-9800-426600 (Merged and Amended Project Area - Publicity and Advertising - Orange Progress). (REMOVED AND HEARD SEPARATELY) 3.10 Agreement between the City of Orange and Trauma Intervention Programs, Inc. (TIP), a national non-profit organization that provides immediate on-scene support to victims of tragic events. (A2100.0 Agr-4914.A) SUMMARY: Approval ofan annual agreement in the amount of$16,560 with Trauma Intervention Programs, Inc. to provide immediate on-scene support to victims of tragic events, FY 2007-08. Discussion - Councilmember Smith asked about the status of any formal agreement between TIP and St. Joseph Hospital or Children's Hospital of Orange County. Wayne Fortin, TIP representative, reported TIP has been meeting with St. Joseph to establish a formal relationship; and they hope to accomplish this soon. A formal relationship would mean that the hospital can contact TIP directly instead of going through Police and Fire representatives. MOTION - Smith SECOND - Dumitru AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to approve the Agreement between the City and Trauma Intervention Programs, Inc.; and authorize the Mayor and City Clerk to execute the Agreement on behalf of the City. FISCAL IMPACT: Sufficient funds exist in the following account for FY 2007-08: 100-0000-426700 Non Department - Other Professional Services $16,560 PAGE 5 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.11 A Consultant Services Agreement with Hogle-Ireland, Inc., a private planning consulting firm, to provide work in the areas of current planning and environmental review related to processing of a Tentative Tract Map for East Orange Area 2. (A2100.0 Agr-5076) SUMMARY: Staff anticipates that development applications will soon be submitted by The Irvine Company for a tentative tract map for East Orange Area 2. Coordination of the review of this application will require extensive staff resources. This Consulting Services Agreement will augment the existing staff in order to provide for adequate staffing to properly evaluate the proposal. ACTION: Approved and authorized the Mayor and City Clerk to execute the consultant services agreement with Hogle-Ireland, Inc. for contract planning staff to work on Santiago Hills II and East Orange. The contract amount is not to exceed $70,000. FISCAL IMPACT: None. The cost of the contract planner will be reimbursed by the applicant and funds to cover the expense in the amount of $70,000 are available in account 100-6021-411102. 3.12 A Second Amendment to an existing Consultant Services Agreement with Hogle- Ireland, Inc., a private planning consulting firm, to provide current planning assignments and prepare planning studies or reports for the Planning Division. (A2100.0 Agr-4954.2) SUMMARY: The goal of the Planning Division is to provide quality professional planning services. As the division reaches full staffing in current planning, staff seeks to provide continuity for longer term projects currently under study and to transition other proj ects to the new Senior Planner. This contract will augment existing staff with the use of professional planning consultants for the next two months. ACTION: Approved and authorized the Mayor and City Clerk to execute an amendment to an existing professional service contract with Hogle-Ireland, Inc., not to exceed an additional $50,000 for a total contract amount of $280,000. FISCAL IMP ACT: Funds in the amount of $50,000 are available in the following account of the Current Planning Division's budget - 100-6021-426700 (Other Professional and Consulting Services) These funds are from salary savings based on current vacancies. For the Current Planning work, the cost for the contract planners will be reimbursed by the applicants. PAGE 6 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.13 A Fourth Amendment to an existing Professional Service Contract with a private consulting firm, Willdan Associates, to perform the duties of Chief Building Official including administration and management of the Building Division including plan check, permit services, inspection and code enforcement. (A2100.0 agr-4679.A.4) SUMMARY: The goal of the Building Division is to provide quality customer service at the public counter throughout the business day. The Community Development Department is experiencing a staff shortage with the absence of a Chief Building Official. The fourth amendment to the contract will augment this shortage with the use of a consultant through the end of July 2007. ACTION: Approved and authorized the Mayor and City Clerk to execute an amendment to an existing professional service contract with Willdan Associates not to exceed an additional $52,000, for a total contract amount of $591,700. FISCAL IMPACT: Funds in the amount of $52,000 are available in the following account of the Plan Check Administration budget: 100-6033-427800 (Other Contractual Services). BIDS 3.14 Project No. SP 3577; Approval of plans and specifications and request authorization to advertise for bids for construction of Arterial Highway Rehabilitation Program (AHRP) Projects - Glassell Street from Collins Avenue to Katella Avenne. (S4000.S.7) SUMMARY: Plans and specifications have been completed for the Glassell Street Arterial Highway Rehabilitation Program. The project is ready to be advertised for bids. The estimated construction cost is $720,000. ACTION: Approved plans and specifications and authorized advertising for bids for the Glassell Street Arterial Highway Rehabilitation improvements. FISCAL IMPACT: Funds are budgeted and available in the following accounts: 272-5011-483300-3053 Gas Tax 2105 Glassell St.; Katella to Collins $351,104 550-5011-483300-3053 AHRP Glassell St.; Katella to Collins $351,104 Once the bids are opened and actual bids are known, staff will make recommendations on the award based on available funding, including request for fund transfer from other unbudgeted funds, and re-scoping of construction items, if necessary. PAGE 7 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.15 Bid No. 067-44; Approval of plans and specifications and request authorization to advertise for bids for construction of Community Development Block Grant (CDBG) Projects - Grand Street, Center Street, Blake Street, Harwood Street, and Pine Street Reconstruction (SP-3600). (S4000.S.7) SUMMARY: Plans and specifications have been completed for the reconstruction of Grand Street, Center Street, Blake Street, Harwood Street, and Pine Street under the CDBG Program. The project is ready to be advertised. The total estimated construction cost including contingencies and construction engineering (15%) is $465,000. ACTION: Approved plans and specifications and authorized advertising for bids for the Grand Street, Center Street, Blake Street, Harwood Street, and Pine Street Reconstruction Projects. FISCAL IMPACT: Funds are budgeted in the Capital Improvement Program and are available in the following accounts: 310-9645-483300-4056 (CDBG Blake Street Reconstruction) 310-9645-483300-4057 (CDBG Center Street Reconstruction) 310-9645-483300-4058 (CDBG Grand Street Reconstruction) 310-9645-483300-4059 (CDBG Harwood Street Reconstruction) 310-9645-483300-4060 (CDBG Pine Street Reconstruction) $ 89,000 $ 85,000 $ 86,000 $ 102,000 $ 103.000 $ 465,000 Total 3.16 Rejection of Bids - Bid No. 067-41; Security Fence Replacement for the Water Plant (W-640). (C2500.P) SUMMARY: Bids for the Security Fence Replacement for the Water Plant were opened on April 19, 2007. One bidder responded to the notice inviting bids. The bidder is Southland Construction of Irvine for $155,000.00. Since the bid is substantially higher than the engineer's estimate and available budget, staff recommends rejection of the bid. ACTION: Rejected all bids received. FISCAL IMPACT: Funds are budgeted and are available in the following account: 601-8011-481200-8101 (Water Utility Security Improvements) $100,000 PAGER CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.17 Bid 067-47; Project No. W-644; Water Plant Public Counter Security Improvements. Approval of plans and specifications and request authorization to advertise for bids. (C2500.P) SUMMARY: Plans and specifications have been completed for the Water Plant Public Counter Security Improvements. The plans call for an addition of 842 square feet to the existing building to accommodate a security front counter with waiting area for the public, a meeting room, and three new offices. Improvements to the Water Building will include retrofitting of the restrooms to comply with ADA codes, replacement of the perimeter block wall, construction of additional handicapped parking along with paving, and landscaping. Plans and specifications have been completed and the project is ready to be advertised for bids. The Engineer's Estimate of cost for construction is $490,000. ACTION: 1) Transferred $188,249 from Account No. 601-8011-481200-8101 (Water Utility Security Improvements) to Account No. 601-8011-481200-8212 (Water Plant Public Counter Security Improvements); 2) Transferred $14,749 from Account No. 601-8011-481200-8932 (Water Plant Painting) to Account No. 601-8011-481200-8212 (Water Plant Public Counter Security Improvements); 3) Transferred $95,935 from Account No. 601-8011-481200-8933 (Water Plant Roof Replacement) to Account No. 601-8011-481200-8212 (Water Plant Public Counter Security Improvements); and 4) Approved plans and specifications and authorized advertising for bids for the Water Plant Public Counter Security Improvements. FISCAL IMPACT: After transfer, funds are available, as follows: 601- 8011-481200-8212 Water Plant Public Counter Security Improv. $445,593 CONTRACTS 3.18 Contract Change Order No.1; Bid No. 067-32; Project No. SP-3588; CDBG Project - Americans with Disabilities Act (ADA) Wheelchair Access Ramps at Various Locations, FY 2006-07. (A2100.0 Agr-5054) SUMMARY: This Contract Change Order authorizes payment for extra work at agreed unit prices. The extra work consists of 13 additional ramps. The total cost for this change order is $36,300.00. ACTION: 1) Transferred $35,000 from 310-9645-491300-1070 (CDBG contingency fund) to 310-9645-483300-1328 (ADA Ramp Improvements); and 2) Approved Contract Change Order No. 1 in the amount of $36,300.00 to Nobest, Inc. for the extra work. FISCAL IMPACT: Funds will be available upon transfer in the Capital Improvement Program in the following account: 310-9645-483300-1328 CDBG - ADA Improvements $36,300 PAGE 9 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.19 Contract Change Order No.2 and Final Payment; Bid No. 067-09; Taft Avenue and Glassell Street Storm Drain Improvements (D-146). (A2100.0 Agr-4964) SUMMARY: This Contract Change Order authorizes final payment for additional work at agreed lump sum prices. The total cost for this change order is $56,155.00. ACTION: 1) Transferred $10,967.49 from 550-5011-483300-3058 (Orange-Olive Road Storm Drain) to 550-5011-483400-5324 (Taft and Glassell Storm Drain); 2) Transferred $45,187.51 from 272-5032-483100-6193 (Orange-Olive Road and Heim Ave Signal) to 272-5011-483400-5324 for storm drain construction; and 3) Approved Contract Change Order No.2 and final payment in the amount of $56,155.00 to Mike Prlich & Sons, Inc. for the additional work. FISCAL IMPACT: Funds will be available upon transfer in the following accounts: 272-5011-483400-5324 Gas Tax $45,187.51 550-5011-483400-5324 County of Orange Cooperative Project $10,967.49 3.20 Contract Change Order No.1 and Final Payment; Bid. No. 056-45; Waterline Renewal for Fern St., Hillside Ave., Lakeside Ave., Brookside Ave., Warbler Pl., Hart St., Mockingbird PI., Oriole PI., and Meadowlark PI. (A2100.0 Agr-4933) SUMMARY: This Contract Change Order authorizes final payment for additional work at agreed lump sum prices. The total cost for this change order is $45,147.39. ACTION: 1) Appropriated $16,200 from unallocated reserves to Account 601-8041- 484501-8400 (Pipeline Renewal projects); and 2) Approved Contract Change Order No.1 and final payment in the amount of $45,147.39 to West Valley Construction, Inc. for the additional work. FISCAL IMAPCT: After appropriation, funds will be available to cover the cost of the contract as follows: 601-8041-484501-8400 Pipeline Renewal Projects $45,147.39 PAGE 10 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.21 Award of Bid No. 067-40; Reservoirs 1, lA, 9A and 10 Exterior Recoating. (A2100.0 Agr-5077) SUMMARY: Bids for the exterior recoating of Reservoirs 1, lA, 9A and 10 were received and opened on April 26, 2007. Nine bidders responded to the Notice Inviting Bids. The apparent low bidder is Techno Coatings Inc. for $482,000.00. ACTION: Awarded the contract in the amount of $482,000 to Techno Coatings Inc., 1391 S. Allec Street, Anaheim, CA 92805 and authorized the Mayor and the City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: Funds are budgeted and are currently available as follows: 601-8041-484400-8302 Reservoir Recoating $482,000 3.22 Contract Change Order No. 1 through No. 6 and Final; Bid No. 045-48; Fire Station 8 and Carver Pump Station Project (Reservoir 6 Pump Station). (A2100.0 Agr-4740) SUMMARY: These Contract Change Orders authorize final payment for additional work at agreed lump sum prices or time and material. The total cost for project change orders is $62,476.46. ACTION: 1) Transferred $8,528 from 601-8011-484102-8314 (Reservoir Pump Station No.4) to 601-8011-484201-8207 (Carver Pump Station); and 2) Approved Contract Change Order No.1 through No.6 and Final in the amount of $62,476.46 to Gamut Construction Company for the additional work. FISCAL IMPACT: Funds will be available upon transfer in the following accounts: 601-8011-484201-8207 Carver Pump Station $ 8,528.00 594-3011-481200-2681 Fire Station No.8 $53,948.46 3.23 Final Acceptance of Bid No. 067-22; SP-3531; The City of Orange Civic Center Finance and Public Works Building Offices Interior Painting Located at 300 E. Chapman Avenue and authorization to file Notice of Completion with the County Recorder (No staff report reQuired). (A2100.0 Agr-5019) SUMMARY: Bid No. 067-22; SP-3531; The City of Orange Civic Center Finance and Public Works Building Offices Interior Painting Located at 300 E. Chapman Avenue. Staff recommends acceptance of improvements. The contractor on said job was Mear Construction, Inc. PAGE 11 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) ACTION: Accepted public work improvements; authorized release of Fidelity and Deposit Company of Maryland, Bond No. 08871013 in the amount of $35,000, and authorized the Mayor and City Clerk to execute the Notice of Completion. FISCAL IMPACT: None. PARKING (REMOVED AND HEARD SEPARATELY) 3.24 Request for NO FEE parking permits in Municipal Parking Lot J - South Orange Street, for the Assistance League of Orange (10), and First United Methodist Church (2). Orange Elderly Services (4) would utilize parking in Municipal Parking Lot E - South Olive Street. (S4000.S.3.1.2) SUMMARY: The Assistance League of Orange, First United Methodist Church and Orange Elderly Services are requesting issuance of NO FEE parking permits to accommodate their charitable medical and community activities. This request is reviewed annually by the City Council. Discussion - Councilmember Smith asked for a continuance on the request for permits in the South Orange Street parking lot. She had questions about the use of the permits, including - what days of the week the permits are valid; what type of arrangements for church parking exist in other areas; if the permits are used for church staff or the Chapman University child care program at First United Methodist Church; requested an accurate count of available space; and if there have been any complaints or issues that need to be addressed before offering more than 10% of the parking spaces for free. MOTION - Smith SECOND - Murphy AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to approve the request for No Fee parking permits in the South Olive Street parking lot; and continue the request for No Fee parking permits in the South Orange Street parking lot to June 26, 2007. PAGE 12 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.25 Temporary closure of the Civic Center Municipal Parking Lot from 9:00 a.m. to 5:00 p.m. Saturday, October 27, 2007, and from 1:00 p.m. to 5:00 p.m. Sunday, October 28, 2007 for a special event by the Old Towne Preservation Association. (P2500.0.9) SUMMARY: Old Towne Preservation Association is planning to hold their Open House tour on Saturday and Sunday, October 27-28, 2007 from 9:00 a.m. to 5:00 p.m. The Exhibitor's Hall will be held at the Women's Club on North Center Street and use of the Civic Center parking lot would greatly facilitate visitor parking for their event. ACTION: Approved the temporary closure of the Municipal Parking Lot at Almond Avenue and Center Street (Civic Center lot), for duration of a special event by the Old Towne Preservation Association. FISCAL IMPACT: None. QUITCLAIM 3.26 Quitclaim of an old Santa Ana Irrigation Company (S.A.V.I.) easement at 1816- 1838 North Case Street. (D4000.0) SUMMARY: This S.A.V.I. easement has been abandoned for many years and has been offered to the property owners for their private use. ACTION: Authorized the Mayor and City Clerk to execute a Quitclaim Deed to Grove Construction Corporation for the S.A.V.I. easement located at 1816-1838 North Case Street. FISCAL IMPACT: None. RESOLUTIONS 3.27 RESOLUTION NO. 10187 (L1200.0 LMD-94-1 Sycamore Crossing) A Resolution of the City Council of the City of Orange regarding Landscape Maintenance Assessment District 94-1 (Sycamore Crossing) declaring its intention to provide for an annual levy and collection of assessments for Fiscal Year 2007-2008; and to set a time and place for a Public Hearing to receive public testimony on the foregoing matters; and to give preliminary approval to the Certified Engineer's Report for Landscape Maintenance Assessment District 94-1 (Sycamore Crossing). ACTION: Approved. PAGE 13 CITY COUNCIL MINUTES May 22, 2007 3. CONSENT CALENDAR (Continued) 3.28 RESOLUTION NO. 10188 (LI200.0 LMD-82-1 Shadow Ridge) A Resolution of the City Council of the City of Orange regarding Landscape Maintenance Assessment District 82-1 (Shadow Ridge) declaring its intention to dissolve the district; and to set a time and place for a Public Hearing to receive public testimony on the foregoing matter. ACTION: Approved. 3.29 RESOLUTION NO. 10194 (S4000.S.4) A Resolution of the City Council of the City of Orange finding that a portion of Glassell Street near its intersection with Riverdale Avenue is no longer needed by the public, ordering the vacation thereof and reserving all Public Utility Easements. Note: Councilmember Bilodeau recorded an abstention on this item. ACTION: Approved. MOTION - Murphy SECOND - Smith AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Items 3.7, 3.8, 3.9, 3.10, and 3.24 were removed and heard separately. Councilmember Bilodeau abstained on Item 3.29. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR *********** 4. REPORTS FROM MAYOR CA VECCHE 4.1 Update on Tustin Branch Trail. (C2300.H) Community Services Director, Marie Knight provided a brief update on the status of the Trail. She indicated it will take approximately 17 more months to get through the design/approval phase to where there is a project ready to go out to bid, then a construction process of about 10 months, but these are very preliminary figures and can easily vary. PAGE 14 CITY COUNCIL MINUTES May 22, 2007 4. REPORTS FROM MAYOR CA VECCHE (Continued) Speakers - Expressed concern over the possibility of losing funding with the amount of time it was taking to complete the trail. Shirley Grindle Kirk Winterroth Sue Obermayer John Moore Council discussed continual follow-up with the agencies reviewing the technical studies; funding of the project; the project scope being from Wanda and Collins through to La Veta; the need for a grant writer; and the need for discussions with Cal Trans in an effort to get the project moving forward. Mayor Cavecche directed staff to return with a more detailed report, outlining timing of the project and what parallel efforts can be done so as not to lose funding for this project. 5. REPORTS FROM COUNCILMEMBERS 5.1 Councilmember Smith - Study the possibility of R-l Zoning for all areas of the Old Towne District which were historically primarily single family. (A2500.0 Ord-14-00) Discussion - Councilmember Smith clarified that a study ofR-l Zoning in Old Towne will be addressed in conjunction with the General Plan, noting a General Plan Study Session was planned for June 12th. Speaker - Dan Slater, noted zoning inconsistencies in Old Towne, asking that this be addressed as quickly as possible. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS _ None. 7. ADMINISTRATIVE REPORTS 7.1 Report from Public Works Director - Precise Alignment for the Cannon Street and Santiago Canyon Road Intersection Improvement Project. (S4000.S.7) Precise alignment of Cannon Street realignment and widening has been established and plans, specifications, and estimates are currently being finalized. Based upon the Precise Alignment, the City prepared Mitigated Negative Declaration No. ENV 1776-06 to evaluate the potential environmental impacts of the project. The Mitigated Negative Declaration concludes that with the implementation of certain mitigation measures the proposed project would not have significant impacts upon the environment. The estimated construction cost, including additional Right-of-Way acquisition, to complete all work is $6,000,000. PAGE 15 CITY COUNCIL MINUTES May 22, 2007 7. ADMINISTRATIVE REPORTS (Continued) Speakers - Suzanne Joseph, spoke on the unsafe traffic conditions at Valencia between Linda Vista and Cannon; Barry Rodieck, Blue Ri\:>bon Nursery, spoke on unsafe traffic conditions in this area. Mrs. Farber, responding to a question from Mayor Cavecche, suggested that Public Works staff and the Traffic Commission could review the concerns of the speakers as part of the Residential Neighborhood Traffic Management program. Staff also noted they have coordinated with Linda Vista Elementary to close the school for the Summer session, which will allow for roadway widening and reconstruction of the school parking lot without impacting school operations. Mayor Cavecche directed staff to contact the speakers to assist in addressing traffic concerns. RESOLUTION NO. 10190 A Resolution of the City Council of the City of Orange approving Precise Alignment for the Cannon Street and Santiago Canyon Road Intersection Improvement Project and making certain findings in connection therewith. MOTION - Murphy SECOND - Cavecche AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to approve Resolution No. 10190. 8. REPORTS FROM CITY MANAGER - None. 9. LEGAL AFFAIRS 9.1 RESOLUTION NO. 10189 (A4000.0 App-05l5-07) A Resolution of the City Council of the City of Orange upholding Appeal No. 0515-07 and denying Conditional Use Permit 4080-06 and Negative Declaration 1767-06 which would have allowed the demolition of a 380 square foot detached garage and construction of a two story, detached structure with a three-car garage and an accessory second housing unit located at 424 South Grand Street. Applicant: Mark D. Drenner Appellant: Old Towne Preservation Association MOTION - Smith SECOND - Murphy AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to approve Resolution No. 10189. PAGE 16 CITY COUNCIL MINUTES May 22, 2007 10. PUBLIC HEARINGS 10.1 AMENDMENT TO THE ORANGE MUNICIPAL CODE TO DEFINE SINGLE- FAMILY AND DUPLEX RESIDENTIAL UNITS. (A2500.0 Ord-07-07 Zoning) The public hearing to consider an Ordinance defining Single Family and Duplex Residential Units adding language to the definitions to further define such units as dwellings shared by persons acting as a single housekeeping unit (was continued to this time from Mav 8. 2007). NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA guidelines Section 15305 (Class 5 - Minor Alterations in Land Use Limitations). Discussion - City Attorney, David DeBerry stated that the Apartment Association of Orange County indicated the Association had no concerns with the ordinance. THE MAYOR OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. Council Action - ORDINANCE NO. 7-07 (FIRST READING) An Ordinance of the City Council of the City of Orange amending chapter 17.04 of Title 17 of the Orange Municipal Code defining single-family and duplex residential units. MOTION - Murphy SECOND - Cavecche AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved that Ordinance No. 7-07 be read by title only and same was set for second reading by the preceding vote. 11. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY PAGE 17 CITY COUNCIL MINUTES May 22, 2007 12. RECESS TO CLOSED SESSION City Attorney David DeBerry reported there was a need to discuss an item relating to the Jeff Hambarian case. MOTION - Cavecche SECOND - Murphy AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved that there is a need to take immediate action and that the need arose after the posting of the agenda. The City Council recessed at 6:05 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel concerning existing litigation - City of Orange v. Jeff Hambarian, Orange County Superior Court Case No. 807419. b. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session. PAGE1R CITY COUNCIL MINUTES May 22, 2007 7:00 P.M. SESSION 13. PUBLIC COMMENTS - None. 14. PUBLIC HEARINGS TAPE 3050 14.1 PROPOSED WATER RATE INCREASE. (A2500.0 Ord-12-07) Time set for public hearing to consider amending and revising the Master Schedule of Fees and Charges for Water Rates. The City conducted a financial analysis of the water funds to verify balanced revenues and expenditures, while rnaintaining a reasonable fund balance for emergency purposes. This analysis showed a need for rate increases for the next three years based on rising costs for water supply, energy, and construction. Due to the aging ofthe water infrastructure, additional funds are needed for repair and replacement of water facilities. Pursuant to Article 13D of the California Constitution (Proposition 218) and recent court decision interpreting this constitutional provision, the City is required to conduct a majority protest hearing before raising water rates. The proposed increases do not exceed the City's estimated reasonable cost of providing the service. Staff Report - Water Division Manager, Joe De Francesco provided a staff report, noting that in spite of the proposed increases, the City of Orange will continue to provide water at the second lowest rate in the County; and that the rates would become effective on July 12,2007. City Attorney, David DeBerry explained the Majority Protest Hearing Process as prescribed by Proposition 218, requiring notices be sent to all owners of record in the City. If a majority of the owners protest, then the City cannot assess the increase. He further stated that the increase must pass by a 2/3 vote of the Council. Finance Director, Rich Jacobs explained that the water rates are deposited into an Enterprise Fund which does not receive any tax dollars. Mayor Cavecche clarified that the Enterprise Fund pays for the maintenance of the infrastructure and if there are insufficient funds, then either reserve funds would be used to supplement a shortfall or the infrastructure would be adversely affected due to deferred maintenance. P;Jop.19 CITY COUNCIL MINUTES May 22, 2007 14. PUBLIC HEARINGS (Continued) THE MAYOR OPENED THE PUBLIC HEARING Speakers - . Carol Rudat - asked that all expenses be reviewed. . Robert Bassett - noted excessive fee increase. . Ray Grungoff, Apartment Association of Orange County - asked for a review of the tiered structure for apartment owners. . Louis Divito - requested additional information. . Sister Mary Therese Sweeney - spoke in favor of the increase, noting the rates reflect actual costs only. . Karl Baysinger - spoke in opposition to the tiered system for apartment owners. . Julia Araiza - spoke in opposition to the tiered system for apartment owners. Sheila Harvey - submitted her opposition to the rate increase - but did not speak. Gary Sutliff - did not speak. THE MAYOR CLOSED THE PUBLIC HEARING The City Clerk announced that there are 31,794 parcels in the City and that the City Clerk Office had received 14 written protests; therefore, a majority protest did not exist. In response to the concerns of the speakers, it was noted that the capacity service charge is now indicated on the water bill to give customers a better understanding of cost; and that the capacity charge covers maintenance and the water charge is for water; apartments generally have only one capacity charge per complex; Brown and Caldwell is the firm which conducted the analysis; City staff maintains the system, therefore the charge does cover staff salaries; Capital Improvement projects include the replacement of leaky and aging lines; and developers pay for the water service infrastructure included in their developments. Council Ouestions - Water Division Manager, Joe De Francesco responded to questions by Mayor pro tern Dumitru, stating that the Groundwater Replenishment System will increase the water supply and stabilize rates; and that the amount of rainfall affects the amount of water available to pump, which changes from year to year. He also explained that the decision to use the tiered rates structure was made in 2001 after careful study showed it to be the most fair and equitable. Councilmember Bilodeau stated that the Groundwater Replenishment System is going on line in December, 2007 and will provide water equivalent in price to the imported water from the Colorado River, and that over time it will become cheaper. He explained that the rising costs of water is due in part to the State using Ad Valorem money from the special districts, including the Orange County Water District, but that this practice is ending this year. He reported that the water district charges 1/20th of a penny per gallon of water, compared to the price of bottled water which is marked up 600,000%. He added that this is a pass through account and the money is not used for any other cost. He suggested that the tiered structure for apartment buildings be reviewed at a later date. PAGE 20 CITY COUNCIL MINUTES May 22, 2007 14. PUBLIC HEARINGS (Continued) Mayor Cavecche stated she wanted to ensure that the rate was equitable covering usage and maintenance, and reiterated the need to review the rate being charged apartment complexes and whether the tiered system is the most fair and equitable. She reiterated that the water fund is an enterprise account and the funds collected are used only for water service; and that although it is a tough decision to raise rates, the Council has a responsibility to maintain the water system. Councilmember Smith stated that the increased cost of water would equate to approximately $10 for the next year; that the City's water is good, clean and clear; and that Orange rates are the second lowest rate in the County, which is an indication of good stewardship. In response to a question by Councilmember Dumitru, Mr. De Francesco stated that there are four other water providers to Orange area residents: Golden State, East Orange County Water District, Serrano and Orange Park Acres; and that their rates are higher than the City's rates. Councilmember Murphy noted that homeowner insurance rates can be affected by the level of water service provided by a city. He stated that safety is a number one responsibility, and it is important to be able to effectively deliver water service during emergency times, as well as normal times; and noted that this is not a tax, but a rate increase based on the cost of delivering a service. He agreed with the direction to work with apartment owners on equity issues. Council Action: ORDINANCE NO. 12-07 (FIRST READING) An Ordinance of the City Council of the City of Orange Amending and Revising the Master Schedule of Fees and Charges for Water Rates. MOTION - Bilodeau SECOND - Dumitru AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved that Ordinance No. 12-07 be read by title only and same was set for second reading by the preceding vote. Mayor Cavecche directed staff to work with the Apartment Association of Orange County in studying the tiered structure for apartment units, comparing the city's water structure with other cities. MOTION - Bilodeau SECOND - Murphy AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to authorize the annual transfer of 8% of the water rate revenues from Fund 600 (Water) to Fund 601 (Water Capital Projects). PAGE 21 CITY COUNCIL MINUTES May 22, 2007 14. PUBLIC HEARINGS (Continued) TAPE 5200 14.2 PROPOSED SEWER SERVICE RATE INCREASE. (A2500.0 Ord-13-07) Time set for public hearing to consider amending and revising the Master Schedule of Fees and Charges Relating to Sewer Rates. The City conducted a financial analysis of the sewer rates to verify balanced revenues and expenditures, while maintaining a reasonable fund balance for emergency purposes. This analysis showed a need for a sewer rate increase for the next three years based on rising costs for increased sewer maintenance activities and sewer infrastructure needs. Pursuant to Article 13D of the California Constitution (Proposition 218) and recent court decisions interpreting this constitutional provision, the City is required to conduct a majority protest hearing before raising sewer rates. The proposed increases do not exceed the City's estimated reasonable cost of providing the service. Staff Report - Maintenance Division Manager, Bob Yon Schimmelmann stated the sanitation fund supports street sweeping, street tree maintenance, stormwater/environmental compliance and sewer service. After routine analysis, it was determined that the sewer rate needed adjustment. He added that an aging infrastructure and rising construction costs are driving the need to repair/replace the sewer lines. City Attorney, David DeBerry explained the Majority Protest Hearing Process as prescribed by Proposition 218, requiring notices be sent to all owners of record in the City. Ifa majority of the owners protest, then the City cannot assess the increase. He further stated that the increase must pass by a 2/3 vote of the Council. In response to Council questions, Mr. Von Schimmelmann stated that the average home use is 40 hcf (hundred cubic feet) of water every two months; a ratepayer on vacation is charged the lowest of two months average in the year; some of the sewer pipes are nearing 100 years old; clay pipes last between 70 to 100 years; and that there are other entities that have sewer lines going through Orange - Orange County Sanitation District, and the Cities of Anaheim, Santa Ana and Villa Park. THE MAYOR OPENED THE PUBLIC HEARING Speakers - noting the fees should have been raised gradually over time and that the proposed increase is too high a percentage. . Louis Divito . Donald Meyer . Charles Schroeder THE MAYOR CLOSED THE PUBLIC HEARING PAGE 22 CITY COUNCIL MINUTES May 22, 2007 14. PUBLIC HEARINGS (Continued) Maintenance Division Manager, Bob Von Schimmelmann responded to the speakers concerns, stating that because the sewer rate has been historically low, any rate increase would seem like a jump which is due in part to the inclusion of a Capital Improvement component to address the need for maintenance; the City has had to increase cleaning cycles and perform condition assessments of pipes to come into compliance with the Federal Clean Water Act and the State Waste Discharge Requirement. He added that if a City does not adhere to these requirements, it can be fined by the Government agencies. The City Clerk announced that there are 31,794 parcels in the City and that the City Clerk Office was in receipt of 6 written protests; therefore, a majority protest does not exist. Councilmember Bilodeau reiterated that the major reason the rates are increasing is due to the Capital Improvement project to replace the aging sewer lines. Councilmember Murphy stated that a consequence of the new Proposition 218 Majority Protest Hearing is the cost to mail a notice to every parcel owner which runs approximately $25,000. This creates the need to factor the cost over several years so that the mailing cost is not incurred every year. Mayor Cavecche reiterated that the maintenance cost should have been planned tor many years ago; however, since it was not, the current Council must take the responsibility to maintain the system. ORDINANCE NO. 13-07 (FIRST READING) An Ordinance of the City Council of the City of Orange Amending and Revising the Master Schedule of Fees and Charges Relating to Sewer Rates. MOTION - Cavecche SECOND - Murphy A YES - Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved that Ordinance No. 13-07 be read by title only and same was set for second reading by the preceding vote. PAGE 2:l - - ________u_________ CITY COUNCIL MINUTES May 22, 2007 15. PLANNING AND ENVIRONMENT - None. 16. ADJOURNMENT - The Council adjourned at 8:35 p.m. The next Regular Council Meeting is scheduled for June 12,2007. Declaration of City Clerk, Mary E. Murphy, declariug posting of City Council agenda of a regular meeting of May 22, 2007 at Orauge Civic Center kiosk, Police facility at 1107 North Batavia, and the Main Public Library at 407 E. Chapman; 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 Civic Center City Clerk's Office. LA ~~ -- ~ MURPHY CITY CLERK PAGE 24