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6/26/2007 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON JULY 10, 2007 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING June 26, 2007 The City Council of the City of Orange, California convened on June 26, 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 Bubba Lipscomb, First Southern Baptist Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Denis Bilodeau 1.3 ROLL CALL PRESENT - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Resolution to Janice Marchan upon her retirement was presented. Proclamation honoring Parks & Recreation Month, July 2007 was presented. Employee Service Awards presented Annual Report from Orange County Animal Care Services was presented by Director Jennifer Phillips. Mayor Cavecche announced the 3rd of July event at Fred Kelly Stadium. 2. PUBLIC COMMENTS - Genna Aranda, address on file, spoke on a Code Enforcement issue. Justin Weiler, address on file, spoke on the Team Science project at McPherson School on July 27th. PaQ'e I CITY COUNCIL MINUTES June 26, 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 31, June 7 and June 14, 2007. ACTION: Approved. 3.2 Request approval of City Council Minutes, Regular Meeting of June 12, 2007 (as amended) and Adjourned Regular Meeting of June 12, 2007. (C2500.D.4) ACTION: Approved. 3.3 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. 3.4 Receive and file the City Treasurer's Report, period ending May 31,2007. ACTION: Approved. AGREEMENTS 3.5 Agreement with David Evans and Associates Inc., for design services for the El Camino Real Park Renovation project No. 0607. (A2100.0 Agr-5102) SUMMARY: The conceptual plan for the EI Camino Real Park Renovation project has been approved and the next step is to hire an architectural firm to prepare the construction documents. David Evans and Associates Inc. has been selected through an RFP process in an amount not to exceed $466,395. ACTION: Approved agreement with David Evans and Associates Inc. and authorized the Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: Funds are available to cover the costs of the agreement in the FY 07-08 budget as follows: 511-7021-481105-0607 (EI Camino Park Renovation) $466,395 Page 2 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) (REMOVED AND HEARD SEPARATELY) 3.6 Conditional Certificate of Compliance for a portion of certain real property located at 2375 N. Tustin Street in the City of Orange. (A2100.0 Agr-5109) SUMMARY: The Subdivision Map Act (SMA) provides a remedy for an owner of real property where the creation of a parcel was in violation of the SMA. Tustin Ave. Associates, L.P. filed an application with the City for a Certificate of Compliance for a portion of real property (the former Brunswick Bowl property) it acquired from Leiserv, Inc. in 2005 because Leiserv conveyed a portion of the property to Regency Outdoor Advertising, Inc. in 1997 by way of a quitclaim deed, which has never been recorded and had the effect of creating an illegally subdivided lot. Upon application for a Certificate of Compliance, the SMA requires the City to make a determination whether the division of the property was in compliance with the SMA or local City ordinances. Discussion ~ Responding to a question by Mayor pro tem Dumitru, Assistant Public Works Director/City Engineer, Roger Hohnbaum explained that the Subdivision Map Act governs the splitting of parcels. MOTION - Dumitru SECOND - Murphy AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to: 1) Grant a Conditional Certificate of Compliance; 2) Authorize and direct the Director of Public Works/City Engineer to execute the Conditional Certificate of Compliance on behalf of the City and file it for record with the Clerk-Recorder of the County of Orange; and 3) Authorize and direct the City Attorney to proceed with the process to record a notice of violation for the portion of the property owned by Regency Outdoor Advertising pursuant to Section 66499.36 of the Subdivision Map Act. FISCAL IMPACT: None. 3.7 Third Amendment to Consultant Services Agreement with Integrated Design Services, Inc. (IDS). (A2100.0 Agr-4245.3) SUMMARY: Additional work is needed on the Main Library Expansion project now that the new Orange Public Library & History Center is open to the public. IDS, the project management firm on board for the past four years, would provide additional project/construction management services to complete that work in a timely manner through this Third Amendment to the Agreement. Page 3 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) ACTION: Approved the Third Amendment to Consultant Services Agreement with IDS, for an amount not to exceed $10,000.00. FISCAL IMP ACT: Sufficient funds are allocated and available in the following CIP account: 500-2001-481200-9901 Main Library Expansion $69,747.11 3.8 First Amendment to Agreement No. 2680 betweeu the City of Orange and Pinnacle Landscape Company for landscape maintenance services for City Facilities, Public Medians and Rights-of-Way. (A2100.0 Agr-2680.B.l) SUMMARY: An amendment to Agreement No. 2680 between the City and Pinnacle Landscape Company to continue performing landscape maintenance services under the current agreement for an amount not to exceed $205,009.20 for FY 2007-08. ACTION: Approved the First Amendment to Agreement No. 2680 with Pinnacle Landscape Company in an amount not to exceed $205,009.20, and authorized the Mayor and City Clerk to execute the amendment on behalf of the City. FISCAL IMPACT: Sufficient funds have been budgeted for landscape maintenance services for FY 2007-08 in the following accounts: 100-7022-424301 (Landscape Maintenance) 262-5021-424301 (Landscape Maintenance) 540-7022-424301 (Landscape Maintenance) 940-9800-427800 (Other Contractual Services) 941-9800-427800 (Other Contractual Services) 940-9800-424500-20063 (Other Maintenance Services) 940-9800-424500 (Other Maintenance Services) Total: $102,616.20 99,986.40 1,209.60 120.58 244.82 415.80 415.80 $ 205,009.20 3.9 Reimbursement Agreement between the City of Orange and the Orange Redevelopment Agency for FY 2007-2008. (A2100.0 Agr-5107) (See related Orange Redevelopment Agency Minutes Item No. 3.3) SUMMARY: The Reimbursement Agreement between the City and Agency will create indebtedness which will enable the Agency to utilize tax increment revenue instead of bond proceeds to pay for operational costs. This will free up bond proceeds for loans or projects. ACTION: Approved the Reimbursement Agreement between the City of Orange and the Orange Redevelopment Agency, and authorized the Mayor and the City Clerk to attest the Agreement on behalf of the City. Page 4 I I CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) FISCAL IMPCT: There is no net fiscal impact on either the City or Agency budget. Interest paid by the Agency on the loan will be offset equally by interest earned by the Agency on the loan proceeds. There are sufficient tax increment revenues and other funds available to repay this loan. 3.10 Agreement to develop Wireless Master Plan and market City Property for Wireless Facility Locations. (A2100.0 Agr-5103) SUMMARY: In order for the City to be more proactive in marketing and negotiating competitive lease agreements for the placement of wireless facilities on City-owned property, it is recommended that the City prepare a municipal wireless facility master plan. After soliciting and reviewing proposals from several vendors, it is recommended that the City hire ATS Communications, which has no up-front cost for the preparation of the plan or on-going marketing activities. A TS has a shared-revenue approach that provides an incentive for A TS to aggressively market and negotiate leases on behalf of the City thereby potentially generating significant revenue to the City. ACTION: Approved the Agreement to develop Wireless Master Plan and market City property for wireless facility locations between the City of Orange and ATS Communications, and authorized the Mayor and City Clerk to execute the agreement on behalf of the City. FISCAL IMPACT: No immediate fiscal impact. Although it is anticipated that this Agreement will result in an increase level of interest in wireless facility placement on City-owned property, it is not known how many new leases will be executed or how much additional revenue will be generated. The Agreement with A TS calls for the City to share 25% of future wireless facility lease revenue with ATS. APPROPRIATION 3.11 Appropriate additional funding for Bid. No. 056-45; Waterline Renewal for Fern Street, Hillside Avenue, Lakeside Avenue, Brookside Avenue, Warbler Place, Hart Street, Mockingbird Place, Oriole Place and Meadowlark Place. (A2100.0 Agr- 4933) SUMMARY: Staff requests additional funding to cover for unaccounted inspection costs in the amount of$65,000. ACTION: Appropriated $65,000 from unallocated reserves to Account No. 601-8041- 484501-8400 (Pipeline Renewal Projects). FISCAL IMP ACT: After appropriation, funds will be available to cover the cost of inspection as follows: 601-8041-484501-8400 (Pipeline Renewal Projects) $65,000 Page 5 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) BIDS 3.12 Bid No. 078-04; SP-3605; Annual Mechanical Maintenance Services Contract for Heating, Ventilation and Air Conditioning (HV AC) of various City facilities. Approval of Plans and Specifications and authorization to advertise for bids. (C2500.M.5) SUMMARY: Plans and specifications have been completed for the Annual HV AC Maintenance Contract for various City facilities under the Facilities Maintenance Program and the contract is ready to be advertised. The annual contract cost is estimated to be $85,000. ACTION: Approved plans and specifications and authorized advertising for bids for the Annual HV AC Maintenance Contract for various City facilities. FISCAL IMP ACT: Funds are budgeted and available in the following account: 100-5028-424203-0000 (Public Works, Maintenance) $90,000 3.13 Award of Bid No. 067-38 and appropriation of funds for Landscape Maintenance Services - Sycamore Crossing Landscape Maintenance Assessment District 94-1. (A2100.0 Agr-5104) SUMMARY: Bids for full landscape maintenance services for Sycamore Crossing Landscape Assessment District 94-1 were received and opened on April 5, 2007. The selected bidder is Nieves Landscape, Inc. in the amount $19,240.08. ACTION: Approved and awarded Bid No. 067-38 in the amount of $19,240.08 to Nieves Landscape, Inc., and authorized the Mayor and City Clerk to execute the contract on behalf of the City. FISCAL IMPACT: Sufficient funds have been budgeted for landscape maintenance services for FY 2007-08 in the following account: 293-7024-42430 I (Landscape Maintenance) $19,240.08 Note: This is a partial award of this bid with Agreement No. 5114 receiving the remainder for the Santiago Hills Landscape Maintenance Assessment District No. 86-2. Page 6 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) 3.14 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; and the Application for Leave to File a Late Claim be denied. a. State Farm Insurance - Incident Date: May 15,2007 b. AAA-Eva Armstrong c. Danielle and Chester Farris d. Kay Hagen - Incident Date: December 7, 2006 e. Kay Hagen - Incident Date: January 23, 2007 f. Mark and Sherri Clemens ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. CONTRACTS 3.15 Award of Contract - Bid No. 067-52; Installation of aboveground storage tanks at Fire Station No.7, Police Sub-station, and fuel system upgrades to the Water Yard underground fuel tanks Project. (A2100.0 Agr-5105) SUMMARY: Bids for Installation of aboveground storage tanks at Fire Station No.7, Police Sub-station, and fuel system upgrades to the Water Yard underground fuel tanks Project were received and opened on June 14, 2007. Five bidders responded to the Notice Inviting Bids. The apparent low bidder is Jem Industries, Inc. of Tustin, CA for $306,024. ACTION: Awarded the Contract in the amount of $306,024 to Jem Industries, Inc. and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Sufficient funds are available to cover the award of this contract in the following accounts: 720-5011-481105-9855 720-5023-484400-9855 (Fuel Stations Renovations) (Fuel Stations Renovations) $359,729 $ 40,006 Page 7 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) 3.16 Rejection of low bidder and award of contract to second low bidder - Bid No. 067- 48; Removal of underground storage tanks at Fire Stations No.5, No.7, Police Headquarters and Police Substation. (A2100.0 Agr-5106) SUMMARY: Bids for removal of underground storage tanks at Fire Stations No.5, No.7, Police Headquarters, and Police Substation were received and opened on May 17, 2007. Eight bidders responded to the Notice Inviting Bids. The apparent low bidder, ABC Environmental at $28,766.40, was unresponsive by not furnishing required insurance and will be rejected. Bid will be awarded to the second lowest responsible bidder Metro Environmental Services, Inc. of Ontario, CA for $39,870. ACTION: 1) Rejected the low bidder ABC Environmental for failing to provide proper insurance; and 2) Awarded the contract in the amount of $39,870 to Metro Environmental Services, Inc. and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Sufficient funds are available to cover the award of this contract in the following accounts: 720-5011-481105-9855 720-5023-484400-9855 (Fuel Stations Renovations) (Fuel Stations Renovations) $359,729 $ 40,006 3.17 Final Acceptance of Bid No. 067-32; SP-3588; ADA Wheelchair Access Ramps at Various Locations, FY 2006-07 and authorization to file Notice of Completion with the County Recorder (No staff report required). (A2100.0 Agr-5054) SUMMARY: Bid No. 067-32; SP-3588; ADA Wheelchair Access Ramps at Various Locations, FY 2006-07. Staff recommends acceptance of improvements. The contractor on said job was Nobest, Inc. ACTION: Accepted public work improvements; authorized release of Contractors Bonding and Insurance Company of Washington, Bond No. CE 7765 in the amount of $63,200.00, and authorized the Mayor and City Clerk to execute the Notice of Completion. FISCAL IMPACT: None. 3.18 Award of Contract - Bid No. 067-42; Old Towne Lighting Improvements on Cypress Street, Lemon Street and Olive Street from Sycamore Avenue to Walnut Avenue. (A2100.0 Agr-5108) SUMMARY: Bids for Old Towne Lighting Improvements on Cypress Street, Lemon Street and Olive Street from Sycamore Avenue to Walnut Avenue were received, and opened on May 10, 2007. Four bidders responded to the Notice Inviting Bids. The apparent lowbidder is Pouk & Steinle of Riverside, CA in the amount of $134,490.00. Page 8 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) ACTION: I) Appropriated $19,905.00 from Fund 500, Unreserved Fund Balance of the Capital Project General Fund to Account 500-5032-483300-3041, Old Towne Lighting Improvements; 2) Approved transferring $55,970 from Fund 310 Contingency, to Account 310-9645-483300-3041 Old Towne Lighting Improvements; 3) Awarded the contract in the amount of $134,490.00 to Pouk & Steinle and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Upon appropriation, funds will be available III the Improvement Program in the following accounts: 550-5032-483300-3041 Developer Contribution (Chapman University) 310-9645-483300-3041 Community Development Block Grant (CDBG) 500-5032-483300-3041 Capital Project General Fund Capital $28,995.00 97,800.00 19,905.00 PERMITS 3.19 Request for NO FEE parking permits for the Assistance League of Orange (10), First United Methodist Church (2) and Orange Elderly Services (4). (Continued from May 22, 2007) (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. ACTION: Approved the request and issue the parking permits, valid July 1,2007 thru December 31, 2007. FISCAL IMP ACT: Loss of $2,880 annual parking permit fees. RESOLUTIONS 3.20 RESOLUTION NO. 10203 (C2500.M) A Resolution of the City Council of the City of Orange expressing appreciation to Bill Wagner of the Public Works Department and commending him for more than thirty- five years ofloyal and dedicated service. ACTION: Approved. 3.21 RESOLUTION NO. 10174 (C2500.J.1.0.1) A Resolution of the City Council of the City of Orange adjusting the amount of the Park and Recreational Facilities Development Impact Fees for the implementation of Chapter 3.40 of Title 3 of the Orange Municipal Code and amending the City's Master Schedule of Fees and Charges. ACTION: Continued to July 24, 2007. Page 9 CITY COUNCIL MINUTES June 26, 2007 3. CONSENT CALENDAR (Continued) 3.22 RESOLUTION NO. 10183 (C2500.J.1.0.1) A Resolution of the City Council of the City of Orange adjusting the amount of the Fees in Lieu of Dedication of Land for Park or Recreational Facilities under Chapter 16.60 of Title 16 of the Orange Municipal Code and amending the City's Master Schedule of Fees and Charges. ACTION: Continued to July 24, 2007. 3.23 RESOLUTION NO. 10181 (C2500.J.1.0.1) A Resolution of the City Council of the City of Orange adjusting the amount of the Library Facilities Fees under Chapter 3.50 of Title 3 of the Orange Municipal Code and amending the City's Master Schedule of Fees and Charges. ACTION: Continued to July 24, 2007. MOTION - Murphy SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Item 3.2 was approved as amended; Item 3.6 was removed and heard separately; Items 3.21,3.22 and 3.23 were continued to July 24. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR ******** 4. REPORTS FROM MAYOR CA VECCHE - None. 5. REPORTS FROM COUNCILMEMBERS - None. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None. Page 10 CITY COUNCIL MINUTES June 26, 2007 7. ADMINISTRATIVE REPORTS 7.1 Report from Personnel Director - Appropriation increases for Self Insured Employee Dental Program. (C2500.J.4) SUMMARY: Increases in Delta Dental insurance expenditures reqUire an appropriation increase for both the current and upcoming fiscal years. MOTION - Dumitru SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to authorize the following appropriations from the unreserved fund balance of the Self Insurance-Dental (752) Fund: . An appropriation of$15,000 to 752-1413-426700, Delta Dental Admin. Fees, FY 06-07; . An appropriation of $100,000 to 752-1413-433400, Delta Dental Claims, FY 06-07; . An appropriation of$15,000 to 752-1413-426700, Delta Dental Admin. Fees, FY 07-08; . An appropriation of$lOO,OOO to 752-1413-433400, Delta Dental Claims, FY 07-08. FISCAL IMP ACT: Upon approval of the requested appropriation, funds will be available for Delta Dental insurance expenses as follows: FY 06-07: 752-1413-426700 752-1413-433400 FY 07-08: 752-1413-426700 752-1413-433400 Delta Dental Admin Fees Delta Dental Claims $ 15,226 $ 77,967 Delta Dental Admin Fees Delta Dental Claims $ 57,400 $352,600 Adequate unreserved fund balance is available in the SelfInsurance-Dental Fund (Fund 752) to cover the requested appropriation increases. 7.2 Report from Sr. Assistant to the City Manager - Eighth Amendment to Information Technology (IT) Services Agreement with ACS, Inc. for extending the agreement for an additional two years. (A2100.0 Agr-0978.C.8) SUMMARY: In August 2004, the City of Orange entered into a three-year agreement with ACS for information technology support services. The proposed Eighth Amendment extends the Agreement for an additional two years. Discussion Rick Otto, Sr. Assistant to the City Manager, reported that because the City is in the early stages of implementing a new financial management system, staff is recommending an extension of the current contract; but will begin an RFP process within the next six months. Page 11 CITY COUNCIL MINUTES June 26, 2007 7. ADMINISTRATIVE REPORTS (Continued) Councilmembers Bilodeau and Murphy discussed the timing of the need to implement the citywide FMIS system by the Finance Department, and going out to bid on IT services; noting the problems that can occur ifthey are done simultaneously, and suggested a cautious approach to these changes. MOTION - Murphy SECOND - Bilodeau AYES - Murphy, Dumitru, Bilodeau NOES - Cavecche ABSENT - Smith Moved to approve the Eighth Amendment to the Information Technology Services Agreement between the City of Orange and ACS Enterprise Solutions, Inc., and authorize the Mayor and City Clerk to execute the agreement on behalf of the City. NOTE: Mayor Cavecche voted No because this contract has not been put out to bid in approximately 23 years. She stated she would have been agreeable to a one year contract with a one year extension. 8. REPORTS FROM CITY MANAGER - None. 9. LEGAL AFFAIRS 9.1 ORDINANCE NO. 14-07 (FIRST READING) (A2500.0 Public Utilities) An Ordinance of the City Council of the City of Orange Amending Article III (Cable Television System) of Title 13 of the City of Orange Municipal Code by adding a new Chapter 13.81 and amending the title of Chapter 13.82. MOTION - Murphy SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved that Ordinance No. 14-07 be read by title only and same was set for second reading by the preceding vote. Page 12 CITY COUNCIL MINUTES June 26, 2007 9. LEGAL AFFAIRS (Continued) 9.2 RESOLUTION NO. 10204 (A4000.0 APP-0518-07) A Resolution of the City Council of the City of Orange Adopting Mitigated Negative Declaration No. 1786-07, and Approving Conditional Use Permit No. 2647-07 and Design Review Committee No. 4214-07 to Allow the Remodel of an Existing Commercial Structure Including Related Site Improvements to Create a 52-bay Service Facility as an Ancillary Use to an Existing Toyota Automotive Sales Business on a Parcel Located at 1485 North Tustin Street. (Applicant: Sauers Construction, Inc.) NOTE: Councilmember Murphy noted an abstention on this item due to a conflict of interest with his wife's employment; and left the dais. MOTION - Cavecche SECOND - Dumitru AYES Cavecche, Dumitru, Bilodeau ABSTAIN (RECUSED) - Murphy ABSENT - Smith Moved to approve Resolution No. 10204. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 5:30 p.m. NOTE: The City Council did not recess to a Closed Session and did not discuss this item. a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiators: Personnel Director Steven Pham and Personnel Manager Mike Harary Employee Organizations: Orange Management Association Orange Maintenance and Crafts Employees Association Orange Municipal Employees Association Water Department Employees Association 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. Page 13 CITY COUNCIL MINUTES June 26, 2007 7:00 p.m. Session 12. PUBLIC COMMENTS Karen Finn, spoke on crime and code enforcement issues in West Orange. 13. PUBLIC HEARINGS 13.1 LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT 86-2 - SANTIAGO HILLS. (L1200.0 LMD-86-2) Time set for public hearing on the levy of annual assessments for costs of maintenance and improvements for Landscape Maintenance District 86-2, which is located within the Upper Peters Canyon Specific Plan Area (Santiago Hills). Discussion - Assistant Public Works Director/City Engineer, Roger Hohnbaum explained that the increase to fund labor and utilities is raising the FY 2007-08 cost of landscaping services above the current maximum assessment, requiring the residents to vote on a fee increase. He added that a property owner's vote is proportional to the dollar amount of the assessment paid. MAYOR CA VECCHE OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR CA VECCHE CLOSED THE PUBLIC HEARING. Responding to a question by Councilmember Bilodeau, Mr. Hohnbaum reported that the City- owned parcel includes a greenbelt and the fire and police substation. Councilmember Bilodeau wanted to ensure that the City would not be accepting dedication of rights~of-way for landscape purposes in future developments. Mayor Cavecche reiterated her opposition to landscape assessment districts in general, but cited the difficulties with this district in that it includes multiple homeowner associations. Council Action: MOTION - Murphy SECOND - Cavecche AYES - Murphy, Cavecche, Dumitru, NOES - Bilodeau ABSENT - Smith Moved that the Council not participate in the ballot vote for Landscape Maintenance Assessment District 86-2, either in favor or opposed to the assessment. Page 14 CITY COUNCIL MINUTES June 26, 2007 13. PUBLIC HEARINGS (Continued) The Election was conducted and the results announced, as follows: YES Votes - $70,068.16 (30%) NO Votes - $162,618.55 (70%) There being a majority of the 566 total ballots cast in opposition to the increase in the assessment, the Council voted on the resolutions needed to levy the FY 2007-08 assessment. RESOLUTION NO. 10202 A Resolution of the City Council of the City of Orange, California, declaring the results of the Property Owner Protest Ballot Proceedings conducted for the Levy of Assessments related to the Proposed New or Increase Assessments for Properties within Landscape Maintenance District 86-2, commencing in Fiscal Year 2007-2008. MOTION - Cavecche SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to approve Resolution No. 10202. RESOLUTION NO. 10200 A Resolution of the City Council of the City of Orange, California, Approving the Final Engineers Report for the Annual Levy of Assessments and the Proposed New or Increase Assessments connected therewith for Landscape Maintenance District 86-2, commencing in Fiscal Year 2007-2008. MOTION - Cavecche SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to approve Resolution No. 10200. RESOLUTION NO. 10201 A Resolution of the City Council of the City of Orange, California, Ordering the Levy of Assessments for Fiscal Year 2007-2008 for Landscape Maintenance District 86-2. MOTION - Cavecche SECOND - Bilodeau AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to approve Resolution No. 10201; noting the assessments will remain at the current level. Page 15 CITY COUNCIL MINUTES June 26, 2007 13. PUBLIC HEARINGS (Continued) 13.2 LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT 82-1 (SHADOW RIDGE). (L1200.0 LMD-82-1) Time set for public hearing to consider the dissolution of Landscape Maintenance Assessment District 82-1 (Shadow Ridge), which is located westerly of Meats Avenue in the vicinity of Marywood and Shadow Ridge Streets. Discussion Mayor Cavecche asked about the possibility of establishing a homeowners association for some of the lots in this area. City Attorney, David DeBerry explained that it is possible to establish an association, but it is more difficult since the passage of Prop 218, and would require a vote of the property owners. Councilmember Bilodeau asked what would happen if the lots were not maintained adequately by the property owners. Assistant City Engineer Roger Hohnbaum explained that any maintenance issues would be addressed through the City's Code Enforcement Division. MAYOR CA VECCHE OPENED THE PUBLIC HEARING Peter Homer, asked about the transition for maintenance of the slopes, the irrigation system and enforcement issues if a homeowner chooses not to maintain their slope. MAYOR CA VECCHE CLOSED THE PUBLIC HEARING Mr. Hohnbaum reported that prior to turning the maintenance over to the property owners, the City can alter the irrigation system so that it is tied to each homeowners' property. He noted there are other slopes in the area that are maintained by private property owners; and that homeowners can be forced to maintain their property through Code Enforcement action. Landscape District Coordinator Howard Morris explained that the City will continue to irrigate the slopes for a period of time; and will work with the homeowners on a transition plan, whether they want to form their own association or maintain the slopes privately. Mayor Cavecche wanted to ensure there was plan in place before the maintenance is turned over to the homeowners; and asked if the homeowners would be able to install fencing on the slope since it is their private property. Page 16 CITY COUNCIL MINUTES June 26, 2007 13. PUBLIC HEARINGS (Continued) Mr. Hohnbaum reported there will be a transition period, but that no set time has been established. He suggested staff can work with the homeowners and report back to Council with an exact date for dissolution; but that a year should be more than enough time for this. He also reported that the homeowners would be allowed to install a six foot fence on their property once the district is dissolved. Mayor pro tem Dumitru expressed concern that the homeowners have not been able to utilize their own property because of the maintenance district. City Attorney Mr. DeBerry explained that the homeowners have not been able to install fences on their property up to this point because when this district was formed to maintain the slopes, that precluded anyone from building any structure on the property which would prohibit maintenance of the area. Jim Devore, Associate Civil Engineer, explained the current maintenance contract expires July 2007 but can continue to operate with surplus funds for irrigation, but not maintenance. Mr. Hohnbaum further explained there is currently approximately $10,000 in a surplus account for this area; that approximately $2,000 is needed for yearly utilities; and the remaining $8,000 can go back to the City for maintenance along Meats or it can be used for further maintenance. Council Action: RESOLUTION NO. 10180 A Resolution of the City Council of the City of Orange ordering the dissolution of Landscape Maintenance Assessment District 82-1 (Shadow Ridge). MOTION - Dumitru SECOND - Murphy AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to approve Resolution no. 10180; with direction to staff to work with the homeowners on a transition plan to assume maintenance of the slope area; with the transition to be as timely as possible, but no longer than one year. Page 17 CITY COUNCIL MINUTES June 26, 2007 13. PUBLIC HEARINGS (Continued) 13.3 LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT 94-1 (SYCAMORE CROSSING). (L1200.0 LMD-94-1) Time set for public hearing to consider the levy of annual assessments for Landscape Maintenance District 94-1, which is located in the Sycamore Crossing Tract. Discussion MAYOR CA VECCHE OPENED THE PUBLIC HEARING Mark Sedam, spoke in opposition to the proposed increase; and submitted photos of existing maintenance concerns. MAYOR CA VECCHE CLOSED THE PUBLIC HEARING Roger Hohnbaum, Assistant City Engineer, explained the association will not receive any additional value with the proposed increase; but that the fees will just cover status quo annual maintenance. Mayor pro tem Dumitru spoke on the maintenance of the trail, noting a concern that the homeowners are paying for an amenity that is enjoyed by the entire city. Mr. Hohnbaum explained that this was a condition of approval for the tract. He explained the County maintains the low flow portion of the flood control channel and the high flow portion, which includes landscaping within the channel, is maintained by the District because the County will not maintain landscaping facilities. It would also be difficult to dissolve this district because the association would assume all facilities, which includes the retirement facility and city property. Councilmember Murphy explained that when the development was approved, the concern at the time was to ensure there was adequate landscaping along the channel and not a cement channel. Mayor Cavecche stated she does not usually support these types of districts, but realizes this was a condition of approval when the development was first approved and that it does take care of some of the flood control area; also noting that notices were sent out to homeowners informing them of the hearing and of the proposed assessment increase. She requested staff look at some of the maintenance issues raised by Mr. Sedam. Mayor pro tem Dumitru noted that direction to staff was to speak with each of the homeowner associations to determine if the associations are able to take over maintenance if the districts were dissolved. He confirmed with staff that no in depth discussions have taken place with this homeowners association, noting that he can not make an informed decision if all the information is not available. , Page 18 CITY COUNCIL MINUTES June 26, 2007 13. PUBLIC HEARINGS (Continued) Mr. Morris explained some of the problems associated with the landscaping, stating there was an aggressive ground cover that got out of control and resulted in certain plants being removed. Those plants will be replaced in July. There is also very compacted soil near the channel that makes it difficult for plants to grow. Councilmember Bilodeau agreed there needed to be more input from the members of the homeowners association. Mayor pro tem Dumitru asked staff to arrange a walking tour of this site. Council Action: RESOLUTION NO. 10196 A Resolution of the City Council of the City of Orange Confirming the Diagram and Assessment and Providing for the Levy of the Annual Assessment for Special Maintenance District 94-1. MOTION - Bilodeau SECOND - Dumitru AYES - Murphy, Cavecche, Dumitru, Bilodeau ABSENT - Smith Moved to continue to July 24, 2007 at 4:30 p.m.; with direction to staff to meet directly with the members of the homeowners association for more information. 14. PLANNING AND ENVIRONMENT - None. 15. ADJOURNMENT - The City Council Adjourned at 8:30 p.m. Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a regular meeting of June 26, 2007 at Orange 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 ~~E~Ht ~ , CITY CLERK Page 19