2/26/2008 - Council Minutes - CC Minutes Reg Meeting
APPROVED BY THE CITY COUNCIL ON MARCH 11, 2008
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
February 26,2008
The City Council of the City of Orange, California convened on February 26, 2008 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 Gene Loeffler, Covenant Community Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Carolyn Cavecche
1.3 ROLL CALL
PRESENT - Smith, Murphy, Cavecche, Dumitru, Bilodeau
ABSENT - None
1.4 PRESENT A TIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Invitation from YMCA of Orange to annual Pancake Breakfast on March 22nd.
Presentation of annual report from the Orange County Human Relations Commission.
Presentation of Employee Service Awards.
The City Council will adjourn in memory of Bill Mertz, retired City of Orange Water
Division employee;
and will also adjourn in memory of Herbert Douglass, lifelong Orange resident.
2. PUBLIC COMMENTS - None.
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February 26, 2008
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 January 31 and
February 7, 2008.
ACTION: Approved.
3.2 Request approval of City Council Minutes, Regular Meeting dated February 12,
2008. (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 January 31, 2008.
(C2500.F)
ACTION: Approved.
AGREEMENTS
3.5 Agreement with Kiesel, Boucher & Larson to represent the City in litigation
against online travel companies for withholding transient occupancy taxes due to
the City. (A2100.0 Agr-5236)
SUMMARY: A number of California cities have retained the Kiesel, Boucher &
Larson law firm to represent them in administrative proceedings and litigation against
various online travel companies (hereafter, OTC) such as Expedia, Orbitz, Travelocity,
etc., for under estimating and under reporting of transient occupancy taxes (hereafter,
TOT). When travelers book hotel reservations on line with an OTC, the OTC is
required to charge and collect the TOT and then remit that amount to the City in which
the hotel is located. Due to the improper manner in which OTCs are calculating TOT,
cities have estimated underpayments in TOT of 20%-25%. The agreement is
contingency based, i.e., attorneys' fees will be based on the amount that is recovered.
If there is no recovery, the City is not liable for any attorneys' fees. However, the City
will be responsible for paying specified costs associated with the litigation irrespective
of whether there is a recovery.
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3. CONSENT CALENDAR (Continued)
ACTION: Approved and authorized the Mayor and City Clerk to execute the
Agreement with Kiesel, Boucher & Larson, pending a decision from the City Attorney
to go forward with the lawsuit.
FISCAL IMP ACT: It is anticipated that the litigation will lead to a net gain for the
City both in recovery and on a going forward basis, which potentially could be in the
hundreds of thousands of dollars per year. If the litigation is unsuccessful, the City will
be liable for costs of the litigation, which are not expected to exceed $40,000. Funds
are available in Fund No. 100-0301-426100, Legal Services.
APPROPRIATIONS
3.6 2007 Urban Area Security Initiative (UASI) Grant - Santa Ana/Anaheim Urban
Area Training Allocations. (C2500.K)
SUMMARY: The Santa Ana/Anaheim Urban Area UASI has authorized a
reimbursement grant award in the amount not-to-exceed $71,154.49 ($14,230.90 for
discretionary training and $56,923.59 for regional training). There is not a cash match
requirement. The goal of the Santa Ana/Anaheim Urban Area UASI is to ensure that
training programs are delivered to accomplish core competencies and awareness levels
among all first responders regarding terrorism. Funds provided through the grant will
be used to cover training, overtime, backfill, travel, and per diem costs associated with
the attendance of Office of Domestic Preparedness approved WMD courses.
ACTION: Appropriated $71,154.49 from the General Fund as follows:
100-4081-429400-2320 $ 8,538.54 Police-Homeland Security-Discretionary Training
100-4081-429400-2321 $34,154.30 Police-Homeland Security-Regional Training
100-3023-429400-2320 $ 5,692.36 Fire-Fire Training-Discretionary Training
100-3023-429400-2321 $22,769.29 Fire-Fire Training-Regional Training
FISCAL IMP ACT: Because the City of Orange was approved for a reimbursable grant
award in the amount of $71,154.49 through the UASI Grant funds, there will be no
fiscal impact to the General Fund.
BIDS
3.7 Bid No. 078-39; Approval of specifications and request authorization to advertise
for bids for the Police Headquarters Exterior Wall Sealing (SP-3643). (C2500.M)
SUMMARY: Specifications have been completed for the Police Headquarters Exterior
Wall Sealing. The project is ready to be advertised. The total estimated construction
cost is $65,000.
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3. CONSENT CALENDAR (Continued)
ACTION: Approved specifications and authorized advertising for bids for the Police
Headquarters Exterior Wall Sealing.
FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and are
available in the following account:
725-5028-481200-9826 Police HQ Exterior Wall Sealing $80,000
3.8 Bid No. 078-38; Approval of plans and specifications; adoption of Addendum to
Mitigated Negative Declaration No. 1776-06; and request authorization to
advertise for bids for construction of Cannon Street and Santiago Canyon Road
Improvements (SP-3233). (S4000.S.7)
SUMMARY: Plans and specifications have been completed for the realignment and
widening of Cannon Street from north of Cerritos Drive to north of Santiago Canyon
Road near Cannon Bridge. The project is ready to be advertised for bids. The
estimated construction cost including 15% contingencies is $3,900,000.
ACTION: 1) Approved plans and specifications and authorized advertising for bids
for the Cannon Street and Santiago Canyon Road Improvements; and 2) Adopted
Addendum to Mitigated Negative Declaration No. 1776-06.
$1,399,148.00
$1,757,852.00
$ 539,000.00
Total $3,696,000.00
Once the bids are opened and actual bids are known, staff will make recommendations
on the award based on available funding including any requests for funding
appropriations.
FISCAL IMPACT: The total project construction cost estimate is $3,900,000. Funds
for construction are budgeted in the following funds:
550-5011-483300-3427 (CTFP - IIP)
550-5011-483300-3427 (Developer Contribution)
285-5011-483300-3427 (TSIP Area C)
3.9 Approval of plans and specifications for the electrical upgrades to El Modena Park
(El Modena Park Renovation II CIP Project 0079), and authorization to advertise for
bids. (C2500.M.4.11)
SUMMARY: The replacement of the main electrical panel at E1 Modena Park was
identified and approved as a CIP project in the current fiscal year's budget. The
Categorical Exemption has been prepared, and plans and specifications have been
completed for the electrical upgrades to E1 Modena Park, which include the
replacement of the main electrical panel. The project is ready to be advertised.
ACTION: Authorized advertising to bid for electrical upgrades to E1 Modena Park
electrical panel.
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3. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: The total estimated construction cost including contingencies is
$185,640. The professional engineering services for design services provided thus far,
and project oversight during construction will be $19,600. Funds are identified in the
FY 07-08 CIP to cover the cost of project management and construction as follows:
511-7021-481105-0079-00000 (Park Acquisition and Development) $60,397.00
550-7021-481105-0079-00000 (Cellular Revenue) $144,843.00
Final fund sources will be determined at the time City Council approves the award of bid.
3.10 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
c1aim(s) be denied.
a. Danielle Lepins
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.11 Award of Contract - Bid No. 078-31; SP-3634; Annual Concrete Replacement at
Various Locations, Fiscal Year 2007-2008. (A2100.0 Agr-5237)
SUMMARY: As the first phase of the annual street maintenance activities, this project
will complete all concrete replacement needs before street overlay and slurry seal work
start. Street rehabilitation overlay and slurry seal will bid out as separate projects later
this fiscal year, encumbering the remainder of program and funds.
ACTION: Awarded a Contract in the amount of $438,000 to Noeticorp, Inc. 15
Cavalier Ave., Laguna Niguel, CA 92677, and authorized the Mayor and the City Clerk
to execute on behalf of the City.
FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and are
available in the following accounts:
262-5021-427100-0000
262-5011-483300-3120
(Measure M - Contractual Services) $ 197,000.00
(Measure M Turnback) $1,149,146.00
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3. CONSENT CALENDAR (Continued)
PURCHASES
3.12 Authorize the purchase of Emergency Roadside Assistance and Tires from Pete's
Road Service on a sole source basis. (C2500.M.7)
SUMMARY: The Public Works Department is requesting approval to purchase tires,
and labor to install tires for the City of Orange Fleet Vehicles from Pete's Road Service
in an amount not to exceed $60,000.
ACTION: Authorized the expenditure of $60,000 to Pete's Road Service from Account
710-15102.
FISCAL IMP ACT: Sufficient funds exist in the following account for the purchase of
Equipment Parts: 710-15102 (Garage - Materials & Supplies Inventory)
3.13 Authorize the purchase of Street Sweeper Replacement Parts from Haaker
Equipment Company and brooms and brushes from American Rotary Broom
Company on a sole source basis. (C2500.M.7)
SUMMARY: The Public Works Department is requesting approval to purchase
replacement parts for the Elgin Street Sweepers from Haaker Equipment Company in
an amount not to exceed a total of $95,000 and from American Rotary Broom in an
amount not to exceed $ 50,000.
ACTION: 1) Authorized the expenditure of $95,000 to Haaker Equipment from
Account 710-15102; and 2) Authorized the expenditure of $ 50,000 to American
Rotary Broom Co. from Account 710-15102.
FISCAL IMP ACT: Sufficient funds exist in the following account for the purchase of
Equipment Parts: 710-15102 (Garage - Materials & Supplies Inventory)
QUITCLAIMS
3.14 Quitclaim of an old Santa Ana Irrigation Company (S.A.V.I.) easement at 1872
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 David
William Anderson and Linda Lou Anderson, Trustees of The Anderson Family Trust,
dated March 17, 1988, for the S.A.V.I. easement located at 1872 North Case Street.
FISCAL IMPACT: None.
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3. CONSENT CALENDAR (Continued)
3.15 Quitclaim of an old Santa Ana Irrigation Company (S.A.V.I) easement at 2218 E.
Palm Avenue. (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
Debbie A. Cahill, for the S.A.V.I. easement located at 2218 E. Palm Avenue.
FISCAL IMPACT: None.
RESOLUTIONS
(REMOVED AND HEARD SEP ARATEL Y)
3.16 RESOLUTION NO. 10258 (OC1300.D.1)
A Resolution of the City Council of the City of Orange approving the submittal of
transportation improvement projects to the Orange County Transportation Authority for
funding under the Combined Transportation Funding Program.
Discussion - Councilmember Bilodeau requested the addition of four arterials for
retrofitting of traffic signals to allow emergency vehicle preemption at:
Chapman Avenue from the City Drive to Cannon Street;
La Veta Avenue from Main Street to Glassell Street;
Main Street from Chapman Avenue to State Route 22;
The City Drive from Chapman Avenue to State Route 22.
Councilmember Bilodeau stated that many cities in the county are using the Opticom
system for emergency vehicle preemption. The Santa Fe Depot Pedestrian Paseo
project was proposed to be added to the list as well.
Mayor Cavecche indicated that the paseo project would be a separate application for
funding that is to be brought back to Council in March.
MOTION - Cavecche
SECOND - Bilodeau
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
ACTION: 1) Approved Resolution No. 10258 with the addition of the two projects as
noted; and 2) Approved the submittal of the proposed transportation improvement
projects listed in Resolution 10258 to the Combined Transportation Funding Program
for Fiscal Years 2008/09 though 2009/10 as administered by OCT A.
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3. CONSENT CALENDAR (Continued)
3.17 RESOLUTION NO. 10260 (S4000.S.4)
A Resolution of the City Council of the City of Orange temporarily closing sections of
public streets for approved special events.
ACTION: 1) Approved Resolution No. 10260 approving the closure of public streets
during the times of approved special events; and 2) Approved suspension of permit
parking, and closure of municipal parking lots for certain events and dates occurring in
FY 2008-09.
3.18 RESOLUTION NO. 10262 (C2500.N)
A Resolution of the City Council of the City of Orange Approving the Application for a
Land and Water Conservation Fund Grant for developing the Tustin-to-Collins branch
of the Santiago Creek Bike Trail.
ACTION: Approved.
REPORTS
3.19 City Traffic Commission Activity Report for 2007. (OR1800.0.19)
SUMMARY: This report represents the issues reviewed and acted upon by the City
Traffic Commission in the last year.
ACTION: Received and Filed report.
MOTION - Cavecche
SECOND - Murphy
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Item 3.16 was removed and heard separately. All items on the Consent Calendar were
approved as recommended, with the modified recommended action on Item 3.5.
END OF CONSENT CALENDAR
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4. REPORTS FROM MAYOR CA VECCHE
4.1 Consideration of Appointments and Reappointments to the Design Review
Committee. (OR1800.0.8.1)
MOTION - Cavecche
SECOND - Smith
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to reappoint/appoint the following members to the Design Review Committee, terms to
expire June 30, 2011:
Reappointed - Bill Cathcart, Joe Woollett and Craig Wheeler.
Appointed - Adrienne Gladson and Tim McCormack.
Council acknowledged the tireless efforts of all members of the Committee, including past
members Donnie DeWees and Jon Califf.
5. REPORTS FROM COUNCILMEMBERS
5.1 Councilmember Bilodeau - Report on California Department of Transportation
Highway Safety Improvement Grant availability.
Councilmember Bilodeau announced the availability of Federal Highway Gas Tax funds
administered by CalTrans for highway safety improvements. He stated that the City will apply
for these funds for the Opticom emergency vehicle preemption system; as well as a project on
Santiago Canyon Road, west of Kennymead to Lolita, for a raised barrier to obstruct vehicles
from crossing the center divide. He noted this as the location where Councilmember Steve
Ambriz lost his life.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
7. ADMINISTRATIVE REPORTS
7.1 Report by Public Works Director - Award of Proposal 078-28: Proposal to
Develop a Solid Waste Franchise Agreement, Request for Proposals and Conduct
Negotiations for Solid Waste Collection. (A2100.0 Agr-5238)
SUMMARY: Last fall, the City issued a Request for Qualifications from qualified solid waste
consultants to assist in the development of a new solid waste franchise agreement, conduct a
request for proposal process, and contract negotiations with either the current service provider
or the competitively lowest bid proposer. An evaluation of all consultant proposals provided
staff with the recommendation of contracting with HF &H Consultants, LLC.
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7. ADMINISTRATIVE REPORTS (Continued)
Discussion - City Attorney, David DeBerry gave the staff report. He noted that the current
contract with Waste Management expires May 31, 2009.
Mayor pro tern Dumitru questioned the reasoning for preparing an RFP, while at the same time
conducting negotiations with the current contractor. He had concern that this approach would
be a money-wasting effort and not the right thing to do.
Mr. DeBerry explained that if the negotiation process failed, the RFP documents would be
ready to go. This would allow for maximum time to transition from one hauler to another if
necessary. In answer to a question from Mayor Cavecche he stated that the RFP could be let in
August.
Mayor Cavecche expressed her concern for recent occurrences in other clt1es in which
companies come in as the low bidder, but once awarded the bid, begin requesting change
orders.
Mr. DeBerry stated that the City does not have to award to the lowest bidder, if it is not the
most responsible bidder.
Councilmember Smith stated that in her time on the Council she has not received one
complaint about Waste Management, the current contractor. She cited that graffiti is cleaned
up on trash bins as soon as reported, and that the company is very involved in City events. She
stated she was in favor of renegotiating the contract with Waste Management, and if that
failed, then follow with an RFP. She asked that the consultant ensure new environmental
regulations would be included in the contract, and asked whether the consultant costs could be
reimbursed to the City by the successful bidder. She also confirmed with staff that the current
contract provides that the rates be in the one-third lowest category county-wide.
Mayor pro tern Dumitru stated he favored testing the market and that he did not support
concurrent negotiation and RFP preparation. He questioned whether the best rates could be
received if limiting negotiation to just one company.
The Council clarified the options being proposed; that the three actions are for developing the
franchise agreement, preparing the RFP and negotiating with the current contractor. They
explored the merits of the process to simultaneously negotiate while preparing the RFP.
Laith Ezzet, Sr. Vice President, HF&H Consultants, explained the breakdown of the costs
associated with negotiations, and the preparation of the RFP. He stated that the total costs for
the consultant would be less than one percent of the overall costs of the contract over the next
ten years. He explained the process his company uses to ensure competitive market rates are
being proposed.
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7. ADMINISTRATIVE REPORTS (Continued)
Councilmember Murphy stated that Waste Management has done a good job in delivering a
service for the City; but since the process of negotiations and an RFP is bifurcated, he did not
see a conflict and was in support of investing some money to negotiate with Waste
Management prior to an RFP going out to explore all possibilities.
Mayor Cavecche stated that although Waste Management is a good corporate citizen and the
city has received incredible service from them, it is important for the city to take another look
at companies that contract with the city in terms of service and price.
Councilmember Smith clarified that she was in favor of negotiating with the current provider
and then going out to bid if that failed - that an RFP was in her vision, but as a second step, not
a first step.
MOTION - Dumitru
SECOND - Cavecche
AYES - Cavecche, Dumitru, Bilodeau
NOES - Smith, Murphy
Moved to 1) Appropriate $150,000 from the unreserved fund balance from the Solid Waste
Fund (222) to Account 222-5022-426700 - Other Professional and Consulting Services; and
2) Approve and award Bid No. 078-28 to HF&H Consultants, LLC to prepare a Request for
Proposal and authorize the Mayor and City Clerk to execute the agreement on behalf of the
City; and
3) not conduct concurrent negotiations with Waste Management, Inc.
7.2 Report by City Attorney - Review of Regulations Governing Hand-held Signs for
consideration and recommendation by the Planning Commission. (A2500.0 Ord-03-08)
SUMMARY: Ordinance No. 3-08 is an amendment to the Zoning Code that would place
limits on the size, location and number of hand-held commercial signs on the public right-of-
ways and require a permit for such signs. Since the ordinance amends the Zoning Code, the
City Council is being asked to consider whether to forward to the Planning Commission for
review and recommendation.
Discussion - City Attorney, David DeBerry provided the staff report. He reviewed
commercial speech regulations and sign provisions of the Orange Municipal Code. He also
explained the related traffic and safety issues for motorists and pedestrians.
In response to questions by Councilmember Murphy, Mr. DeBerry stated that this ordinance
does not apply to non-commercial signs such as political signs. He further explained that
permits are needed for special promotional signage, unless the sign is displayed on private
property. He added that enforcement would occur by the City's code enforcement personnel
and the police; noting that enforcement of violations would have to be prioritized.
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7. ADMINISTRATIVE REPORTS (Continued)
ORDINANCE NO. 3-08
An Ordinance of the City Council of the City Orange Amending Subsection 17.36.060.F and
Adding Subsection 17.36.060.G to the City of Orange Municipal Code Regulating Hand-Held
Signs.
MOTION - Dumitru
SECOND - Murphy
AYES - Smith, Murphy, Cavecche, Dumitru
NOES - Bilodeau
Moved to forward Ordinance No. 3-08 to the Planning Commission for reV1ew and
recommendation.
7.3 Report by Economic Development Director - Sale and transfer of Three City-
owned Surplus Properties to the Orange Redevelopment Agency for Redevelopment
purposes. (A2100.0 Agr-5239; 5240)
SUMMARY: Several City surplus properties were created in the Uptown Orange area as a
result of the Santa Ana (1-5) freeway widening. Proposed are two Purchase and Sale
Agreements for the sale and transfer of three City-owned surplus properties to the Orange
Redevelopment Agency for redevelopment purposes.
(See related Redevelopment Agency Minutes Item No. 7.1)
Discussion - Sf. Project Manager, Lisa Kim gave the staff report, eXplaining that future sales
of the properties would come before the Agency for approval.
RESOLUTION NO. 10263
A Resolution of the City Council of the City of Orange finding that certain City-owned
unimproved real property consisting of two noncontiguous parcels generally located on the
south side of West Chapman A venue east of Rampart Street in the City of Orange is surplus to
the City's needs and authorizing the sale thereof to the Orange Redevelopment Agency for
redevelopment purposes.
RESOLUTION NO. 10264
A Resolution of the City Council of the City of Orange finding that certain City-owned
unimproved real property consisting of approximately 19,672 square feet and generally located
on the west side of State College Boulevard approximately 235 feet north of the intersection of
State College Boulevard and West Chapman Avenue in the City of Orange is surplus to the
City's needs and authorizing the sale thereof to the Orange Redevelopment Agency for
redevelopment purposes.
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7. ADMINISTRATIVE REPORTS (Continued)
Mayor Cavecche stated that the proceeds of the sale, being a one-time revenue source, should
be used on a CIP project, and not put into the General Fund.
MOTION - Dumitru
SECOND - Bilodeau
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to approve Resolutions No. 10263 and 10264.
7.4 Report by Public Works Director - Bid No. 078-35; SP-3637; Annual Street
Maintenance Asphalt Concrete Overlay at Various Locations, Fiscal Year 2007-08.
Approval of Plans and Specifications and authorization to advertise for bids. Approval
to Adopt Resolution No. 10261. (S4000.S.7)
SUMMARY: Plans and specifications have been completed for the rehabilitation of
miscellaneous City streets under the Annual Street Maintenance Program. The Project is ready
to be advertised. Construction cost is estimated at $3.5 million.
(See related Redevelopment Agency Minutes Item No. 3.3)
Discussion - Deputy Public Works Director, Roger Hohnbaum gave the staff report. He noted
that the slurry seal process of the road maintenance program will be bid at a later time.
RESOLUTION NO. 10261
A Resolution of the City Council of the City of Orange approving a Cooperation and
Reimbursement Agreement with the Orange Redevelopment Agency relating to reimbursement
by the Orange Redevelopment Agency for certain street repairs within the Orange Merged and
Amended Redevelopment Project Area.
MOTION - Cavecche
SECOND - Bilodeau
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to:
1) Approve plans and specifications and authorize advertising for bids for the FY 2007- 08
Annual Street Maintenance Asphalt Concrete Overlay at Various Locations;
2) Appropriate $65,000 from 100-22031 deposit from Granite Myers Rados, lV, dated
11106/07 to 500-5011-483300-3120;
3) Appropriate $129,903.01 from 340-5011-262900 Prop. 1B, State Grant Funds to 340-5011-
483300-3120 Pavement Management Program; and
4) Adopt Resolution No. 10261.
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7. ADMINISTRATIVE REPORTS (Continued)
7.5 Report by Community Development Director - Second Amendment to Agreement
No. 4401 with TCB/AECOM, doing business as EDA W, to expand the scope of work and
budget of the comprehensive General Plan Update. (A2100.0 Agr-4401.2)
SUMMARY: In October 2005 the Council approved the First Amendment to the General Plan
update contract to add the preparation of an Economic Development Element to the original
scope of work. In June and August 2007 the City Council and Planning Commission
conducted joint study sessions to review the land use alternatives prepared for key focus areas
of the City, as well as other General Plan content. At the conclusion of those study sessions,
staff was directed to make revisions to certain land use alternatives and also to include a future
Meats Interchange as part of the 2030 circulation network of the City. This direction has
resulted in the need for additional consultant services related to revisions to the draft updated
General Plan text, maps, technical analysis, and administrative draft environmental impact
report.
Discussion - Community Development Director, Alice Angus gave the staff report.
Councilmember Smith stated she would not be supporting the item because many of the
General Plan Advisory Committee (GP AC) original recommendations on lower density had
not been heeded or valued by the consultant, but were embraced by the Council; thus creating
the need for some of this additional work.
Mayor Cavecche agreed that the Council had been very succinct with their wishes and the
processes has gone on longer than it should; but noted that legally, the General Plan process
must be completed.
Councilmember Bilodeau stated he preferred not to spend the money to expand the agreement,
but agreed on the need to complete the update.
MOTION - Dumitru
SECOND - Cavecche
AYES - Murphy, Cavecche, Dumitru, Bilodeau
NOES - Smith
Moved to:
1) Approve an amendment to the City's existing agreement with TCB/AECOM, doing business
as EDA W (formerly Cotton/Bridges/Associates, a Division ofP & D Consultants), in the amount
of $218,570; and authorize the Mayor and City Clerk to execute on behalf of the City; and
2) Authorize the transfer of $218,570 from the General Fund (100) to the General Fund-Capital
Projects Fund (500) and appropriate the $218,570 to 500-6011-485100-9801 (General Plan
Update Project).
FISCAL IMPACT: Revenues in the amount of $218,570 from the General Plan Update
Surcharge (100-6011-292802) have accumulated to cover the appropriation.
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7. ADMINISTRATIVE REPORTS (Continued)
7.6 Report by Community Services Director - Award Bid No. 078-22; S.P. 3604
Grijalva Park at Santiago Creek Gymnasium/Sports Center. (A2100.0 Agr-5242)
SUMMARY: Bids were received and opened for the Grijalva Park at Santiago Creek
Gymnasium/Sports Center on December 13,2007. The apparent low bidder is Robert Clapper
Construction in the amount of $8,768,000.
Discussion - Community Services Director, Marie Knight gave the staff report. She explained
that the Redevelopment Agency loan would cover The Irvine Company's portion of the costs,
adding that once The Irvine Company money is received, the loan would be paid back. She
noted that the completion date is scheduled for the Fall of 2009. She stated that the source of
the Theo Lacy funding is the settlement agreement.
Mayor Cavecche confirmed with staff that the low bidder's ability to produce a quality product
had been examined; that the Community Foundation funds would be applied to the loan from
the General Fund; and the possibility of shortfalls, specifying the expected sales tax deficit.
She also confirmed that the City's Investment Advisory Committee would be reviewing this at
their next meeting.
City Manager, John Sibley stated that a shortfall in sales tax is expected but that it is being
addressed currently and also in next year's budget planning process.
Councilmember Murphy commended staff for their team effort and confirmed the need during
an uncertain business environment to use the Redevelopment Agency loan rather than the
General Fund.
MOTION - Murphy
SECOND - Bilodeau
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to:
1) Approve and award Bid No. 078-22 to Robert Clapper Construction, and authorize the
Mayor and City Clerk to execute the contract on behalf of the City;
2) Authorize the City's Director of Community Services to approve and execute any contract
change orders deemed necessary and appropriate during the course of construction in the
amount, in the aggregate, of 10% of the contract amount; and
3) If the City Council desires to fund a portion of the cost of construction by borrowing from
the Orange Redevelopment Agency, it is recommended that the City Council direct the City
Manager to take the necessary steps.
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CITY COUNCIL MINUTES
February 26, 2008
7. ADMINISTRATIVE REPORTS (Continued)
FISCAL IMP ACT:
Upon ORA loan, funds will be available to cover the cost of the bid as follows:
320-7021-481200-1606
500-7021-481200-1606
511- 7021-481200-1606
550-7021-481200-1606
940- 7021-481200-1606
551-7021-481200-1606
594-7021-481200-1606
(Gym/Sports Center - Prop 40Competitive)
(Gym/Sports Center - General Fund)
(Gym/Sports Center - Park Acquisition)
(Gym/Sports Center -Prop 40 Allocated)
(Gym/Sports Center -ORA Loan/TIC)
(Gym/Sports Center - Theo Lacy)
(Gym/Sports Center - Serrano Heights CFD)
TOTAL:
$ 1,738,445.12
2,120,467.00
1,779,665.56
1,183,527.56
4,250,000.00
489,402.50
400,000.00
$11,961,507.74
8. REPORTS FROM CITY MANAGER-
City Manager John Sibley acknowledged and thanked City staff for their efforts on the Grijalva
Park Gymnasium project.
9. LEGAL AFFAIRS - None
10. PUBLIC HEARINGS
10.1 THE ISSUANCE, SALE AND DELIVERY BY THE ORANGE
REDEVELOPMENT AGENCY OF ITS TAX ALLOCATION BONDS FOR THE
ORANGE MERGED AND AMENDED REDEVELOPMENT PROJECT AREA.
(R3500.0)
(See related Redevelopment Agency Minutes Item No. 9.1)
The joint public hearing with the Orange Redevelopment Agency (RDA) to consider an RDA
proposal to issue bonds netting proceeds of approximately $30,000,000 to finance the cost of
the acquisition of land for and the installation and construction of public capital improvements
of benefit to the Orange Merged and Amended Redevelopment Project Area, was continued to
this time from February 12, 2008.
Discussion - Finance Director, Rich Jacobs gave the staff report; noting that the RDA is
required to have debt in order to receive its property tax increment revenue each year.
In response to questions from Mayor pro tern Dumitru, Mr. Jacobs explained that the last time
RDA bonds were issued was in 2003, and that was to refund other existing bonds. He stated
that the approximate $3 million increment received yearly and the entire $23 million currently
in the bank (minus the money committed on other projects in earlier agenda items) could be
used on the list of projects; however it would take approximately 10 to 12 years to complete
the projects as opposed to three to four with the bond issuance.
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CITY COUNCIL MINUTES
February 26, 2008
10. PUBLIC HEARINGS (Continued)
Councilmember Bilodeau confirmed with staff that the RDA has no power to levy, raise, or
collect taxes so this bond issuance will not raise taxes. He also pointed out that some of the
road improvement projects on the list require matching grant funds and the city would have to
return the grant money if it were not able to match the funds in a timely manner with these
RDA funds. If that match were not available, the projects could not be completed. He also
noted the safety projects on the list, such as the Fire Headquarters.
Rich Jacobs, responding to questions from Councilmember Bilodeau, stated that the RDA is
entitled to the property tax increment it gets currently; and if the Agency were to fold, some of
the property tax revenue would come back to the city, but the vast majority of the revenue
would go to other agencies.
THE MAYOR OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, THE
MAYOR CLOSED THE PUBLIC HEARING.
Councilmember Murphy recognized the RDA staff for their development of business
prosperity in the City, and for providing opportunities such as this project list to take advantage
of market conditions to expedite certain projects, and to have the funds available to move on
projects when the opportunities present themselves. He added that it is prudent not to borrow
to full capacity, that each project will come back to the Council for final review, and that this
process has no implications or impacts on sales taxes or property taxes, and allows for the
speedier completion ofthe important projects on the list.
Councilmember Smith noted that although it is not cast in concrete, the list includes the
establishment of railroad crossings and quiet zones; and although that project would require
matching funds, her hope is that it will enable the city to move in that direction.
RESOLUTION NO. 10257
A Resolution of the City Council of the City of Orange approving the issuance, sale, delivery
by the Orange Redevelopment Agency of its Tax Allocation Bonds for the Orange Merged and
Amended Redevelopment Project Area and making certain findings pursuant to California
Health and Safety Code Section 33445.
MOTION - Murphy
SECOND - Bilodeau
AYES - Smith, Murphy, Dumitru, Bilodeau
NOES - Cavecche
Moved to approve Resolution No. 10257.
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CITY COUNCIL MINUTES
February 26, 2008
11. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT
AGENCY
12. RECESS TO CLOSED SESSION - The City Council recessed at 6:50 p.m. to a
Closed Session for the following purposes:
a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:
City Negotiators: Personnel Director Steven Pham / Personnel Manager Mike Harary
Employee Organizations: Fire Management and Fire Union
b. Conference with Real Property Negotiators pursuant to Government Code Section 54956.8:
Property: 206 S. Center
City Negotiator: John Sibley, Rick Otto
Negotiating Parties: City and unknown party at this time
Under Negotiation: Price and terms
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.
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CITY COUNCIL MINUTES
February 26,2008
7:00 P.M. SESSION
13. PUBLIC COMMENTS - None
14. PUBLIC HEARINGS
14.1 APPEAL NO. 0524-07 - ALVIN AND GRACE HENSON (DANCE PARTNER)-
BANQUET HALL AND ACCESSORY DANCE FLOOR - CONDITIONAL USE
PERMIT NO. 2618-06, CONDITIONAL USE PERMIT NO. 2635-07, AND VARIANCE
NO. 2184-07. (A4000.0 APP-0524-07)
Time set for public hearing to consider an appeal of the Planning Commission denial of
Conditional Use Permit No. 2618-06 to allow a dance school, Conditional Use Permit No.
2635-07 to allow the operation of a banquet hall with an accessory dance floor; and Variance
No. 2184-07 for required parking with the banquet hall; to be located within an existing
commercial establishment at 347 East Grove Avenue.
Discussion - Community Development Director, Alice Angus gave the staff report. She
confirmed that the business owners originally obtained a business license for a dance school
only but never applied for a Conditional Use Permit (CUP) for the school. They are now
requesting a CUP for a dance school and a separate CUP for a banquet hall. The owners were
directed to cease the banquet hall activities until they obtained the necessary permits.
In response to a question by Mayor pro tern Dumitru, Code Enforcement Officer Michelle
Echeverria stated that the dance hall had been cited for a total of three to four violations since
August 2006. She added that alcohol had been part of the violations.
THE MAYOR OPENED THE PUBLIC HEARING.
Ms. Alma Reyes, attorney representing the business owners, alleged that the City's issuance of
a business license without informing of the need for a conditional use permit has caused the
owners economic hardship. She also alleged the lengthy investigation period, improper
noticing and misleading information as causing further financial damages to the owners.
Council questioned why the owners were not aware that operating a banquet hall and selling
alcohol needed a proper license, citing that code enforcement had given notice to the business
that they needed a CUP back in August 2006; and that the original business license for a dance
studio stated that the owners did not plan to serve food or alcohol.
Speaker - Dennis Sanchez, address on file, spoke of the problems he encountered as a
neighbor of the business, including loud music, alcohol consumption, and litter.
THE MAYOR CLOSED THE PUBLIC HEARING.
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CITY COUNCIL MINUTES
February 26,2008
14. PUBLIC HEARINGS (Continued)
Councilmember Murphy stated that since the owner was allowed to operate the dance studio he
did not see any damage to the business. He further stated that the business owners ignored the
direction given by the City and continued to operate in violation of the rules.
In response to questions by Councilmember Bilodeau, City Attorney David DeBerry clarified
that when the issuance of the business license occurred, there should have been direction to the
business owner to pursue a conditional use permit, but that business owners have the
responsibility to research their operation and obtain all the necessary approvals and permits.
MOTION - Murphy
SECOND - Cavecche
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to deny Appeal No. 0524-07; upholding the decision of the Planning Commission to
deny Conditional Use Permit 2618-06 and 2635-07 and Variance 2184-07.
14.2 WIRELESS COMMUNICATION FACILITIES ORDINANCE AMENDMENT.
(A2500.0 Ord-06-08)
Time set for public hearing to consider an amendment to the Orange Municipal Code to reflect
changes to the Wireless Communications Facilities definitions and provisions.
NOTE: Numerous requests were received to continue this item for further study.
ORDINANCE NO. 6-08 (FIRST READING)
An Ordinance of the City Council of the City of Orange amending Sections 17.04.042 and
17.12.025 of the Orange Municipal Code to update definitions and procedures pertaining to the
placement and design of Wireless Communication Facilities.
MOTION - Bilodeau
SECOND - Murphy
AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau
Moved to continue to March 25, 2008 at the 4:30 session.
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CITY COUNCIL MINUTES
February 26,2008
15. PLANNING AND ENVIRONMENT - None
16. ADJOURNMENT
The City Council adjourned at 8:30 p.m. in memory of Bill Mertz, retired City of Orange
Water Division employee; and also in memory of Herbert Douglass, lifelong Orange resident.
The next Regular Council meeting is scheduled for March 11,2008.
Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a
regular meeting of February 26, 2008 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 meeting.
~
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