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Council Minutes 06/13/17APPROVED BY THE CITY COUNCIL ON JULY 11, 2017 CITY COUNCIL ORANGE, CALIFORNIA MEETING MINUTES JUNE 13, 2017 The City Council of the City of Orange, California convened on June 13, 2017, at 5:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California. 5:00 P.M. SESSION 1. ROLL CALL PRESENT — Alvarez, Whitaker, Smith, Murphy, Nichols ABSENT — None 2. ORAL COMMUNICATIONS — None 3. RECESS TO CLOSED SESSION — The City Council recessed to Closed Session at 5:00 p.m. with all Members present. a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiators: Laura Kalty, Special Counsel. Employee Organizations: All Bargaining Groups. 4. ADJOURN TO REGULAR MEETING — At 6:15 p.m. the City Council adjourned the Closed Session to its Regular Meeting on Tuesday, June 13, 2017, in the Council Chamber. CITY COUNCIL MINUTES 6:00 P.M. SESSION 1. OPENING JUNE 13, 2017 This Regular Meeting of the Orange City Council was called to order by Mayor Smith at 6:17 p.m. 1.1 INVOCATION Given by Reverend Michelle Harris - Gloyer from First Christian Church. 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Michael Alvarez. 1.3 ROLL CALL PRESENT — Alvarez, Whitaker, Smith, Murphy, Nichols ABSENT — None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Presentation by the Orange Public Library Foundation to the Orange Public Library. Presentation by the Community Foundation of Orange to participants in the Foundation Games. Presentation of Retirement Proclamation to Superintendent Mike Christensen, Orange Unified School District. Recognition of Boy Scouts of America Troop 4235. Presentation of Proclamation in Recognition of Alzheimer's and Brain Awareness Month. Mayor Smith announced a list of summer programs and events taking place at the Orange Public Library. The 3` of July Celebration will be held on July 3, 2017, from 4:00 — 9:00 p.m. at Fred Kelley Stadium; and the Concerts in the Park series at the Hart Park Band Shell will be held every Wednesday from 7:00 — 8:30 p.m. through August 9. 2. PUBLIC COMMENTS Elda Gasga — spoke regarding an effort to reduce driving under the influence and underage drinking in the City of Orange by offering training to those establishments that serve alcohol. Nancy Collins — expressed concerns with the City's Claim for Damages process. Rachel Rolnicki — announced events being hosted by Congressman Lou Correa. PAGE 2 CITY COUNCIL MINUTES 3. CONSENT CALENDAR JUNE 13, 2017 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 Confirmation of warrant registers dated May 4, May 12, May 18, May 26, and June 1, 2017. (C2500.J.1.7) ACTION: Approved. 3.2 City Council Minutes, Adjourned Regular Meeting of March 28, 2017; Special Meeting of May 2, 2017; and Regular Meeting of May 9, 2017. (C2500.D.4) ACTION: Approved. 3.3 Waive reading in full of all ordinances on the Agenda. ACTION: Approved. 3.4 Investment Oversight Committee Report for the period ending May 31, 2017. (OR1800.0.27.16) ACTION: Received and filed. 3.5 City of Orange Hazard Mitigation Plan adoption (a Federal requirement in order for local governments to seek and receive federal mitigation and post- disaster grant funding). (C2500.E.6.2) ACTION: Adopted the City of Orange Hazard Mitigation Plan. 3.6 Agreement with Icon Enterprises Inc., (dba CivicPlus) to provide a Recreation Management Software system (CivicRec) for Community Services class registration and facility reservations. (A2100.0; AGR -6481) NOTE: Mayor pro tem Murphy recorded an abstention due to a potential conflict with employment. ACTION: Approved Agreement with Icon Enterprises, Inc. for recreation software for a not -to- exceed first year cost of $28,820; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.7 Agreement with California Forensic Phlebotomy, Inc. (CFP), for evidence collection services. (A2100.0; AGR- 1626.T) ACTION: Approved agreement with CFP in an amount not -to- exceed $100,000; and authorized the Mayor and City Clerk to execute the agreement on behalf of the City. 3.8 Agreement with Cornerstone Communications for membership to Behind the Badge OC. (A2100.0; AGR- 6400.A) ACTION: Approved agreement with Cornerstone Communications in an amount not -to- exceed $53,000; and authorized the Mayor and City Clerk to execute on behalf of the City. PAGE 3 CITY COUNCIL MINUTES JUNE 13, 2017 3. CONSENT CALENDAR (Continued) 3.9 Agreement with TriTech Software Systems for software upgrades and maintenance of the Police Department's Computer Aided Dispatch and Records Management System (CAD/RMS). (A2100.0; AGR- 3217.P) NOTE: Mayor pro tern Murphy recorded an abstention due to a potential conflict with employment. ACTION: Approved agreement with TriTech Software Systems in an amount not -to- exceed $107,014; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.10 Agreement with Judicial Data Systems Corporation (JDS) for parking citation processing. (A2100.0; AGR- 3553.Q) ACTION: Approved agreement with JDS in an amount not -to- exceed $50,000; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.11 Agreement for painting the exterior of the Santa Fe Train Depot (Depot)/ Ruby's Restaurant Building and Depot train platform facilities and appurtenances. (A2100.0; AGR -6483) NOTE: There was a slight revision in the recommended action per a memo distributed to Council in the Late Agenda Items (Hot File) packet. ACTION: 1) Authorized an appropriation of up to $64,680 from the AQMD AB2766 Air Pollution Reduction unreserved Fund 245 to account 245.7022.51401.20349 (Repairs to Buildings and Fixed Equipment); and 2) Approved agreement with Stolie Painting in the amount not -to- exceed $64,680 and authorized the Mayor and City Clerk to execute on behalf of the City. 3.12 Agreement with Nieves Landscape, Inc. for landscape maintenance services, repairs and improvements for city facilities and districts. (A2100.0; AGR -6485) NOTE: Councilmember Nichols recorded an abstention due to a potential conflict. ACTION: Approved four -year agreement with Nieves Landscape, Inc. for a total not -to- exceed amount of $2,117,598.95; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.13 First Amendment to Agreement 6307 with KOA Corporation for professional services to provide design revisions for the Glassell Street and Walnut Avenue left turn signal modifications. (A2100.0; AGR- 6307.1) ACTION: Approved the First Amendment to the professional services agreement in the amount not -to- exceed $3,600 to KOA Corporation of Orange, CA; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.14 First Amendment to Agreement 6378 with Siemens Industry, Inc. to provide emergency response services for traffic signals /flashers and street lighting. (A2100.0; AGR- 6378.1) ACTION: Approved First Amendment to agreement for emergency response services for the traffic signals /flashers and street lighting in an amount not -to- exceed $40,000 and authorized the Mayor and City Clerk to execute on behalf of the City. 3.15 First Amendment to Consultant Services Agreement with The Code Group, Inc. to provide field inspection services for the Building Division of the Community Development Department. (A2100.0; AGR- 6459.1) ACTION: Approved First Amendment to agreement with The Code Group, Inc. not -to- exceed an additional $105,000, for a total contract amount of $135,000; and authorized the Mayor and City Clerk to execute on behalf of the City. PAGE 4 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 13, 2017 3.16 Third Amendment to Agreement No. 6002 with Common Area Maintenance Service, Inc., dba CAM Services, for sidewalk steam cleaning services. (A2100.0; AGR- 6002.3) ACTION: Approved Third Amendment to the Agreement with CAM Services for an amount not -to- exceed $32,202; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.17 Agreement between the City of Orange and The Jungle Nursery, Inc. for Weed Abatement Services for Fiscal Year (FY) 2017 -18. (A2100.0; AGR- 6044.D) ACTION: 1) Approved the renewed agreement between the City of Orange and The Jungle Nursery, Inc. for weed abatement services in an amount not -to- exceed $96,250 for FY 2017 -18; and 2) Authorized the Mayor and City Clerk to execute the agreement on behalf of the City. 3.18 Consultant Services Agreement between the City of Orange and Bureau Veritas North America, Inc. for Plan Review Services for Fiscal Year (FY) 2017 -18. (A2100.0; AGR- 3100.N) ACTION: 1) Approved the renewed agreement between the City of Orange and Bureau Veritas North America, Inc. in an amount not -to- exceed $50,000 for FY 2017 -18; and 2) Authorized the Mayor and City Clerk to execute on behalf of the City. 3.19 Consultant Services Agreement between the City of Orange and Code Consulting Group, LLC, for Plan Review Services for FY 2016 -17 and FY 2017 -18. (A2100.0; AGR- 5285.G.2 & 5285.H) ACTION: 1) Approved the Second Amendment between the City of Orange and Code Consulting Group in an amount not -to- exceed $110,000 for FY 2016 -17; 2) Approved the renewed agreement between the City of Orange and Code Consulting Group in an amount not -to- exceed $40,000 for FY 2017 -18; and 3) Authorized the Mayor and City Clerk to execute both agreements on behalf of the City. 3.20 Appropriation of $64,944.84 in revenue for Community Garden plot leases, military banner donation revenue, sponsorship donations revenue, and sports field maintenance and renovation at McPherson Athletic Facility, El Modena and Handy Parks. (C2500.N) NOTE: Mayor pro tern Murphy recorded an abstention due to a potential conflict with employment. ACTION: 1) Authorized the appropriation of $253 from revenue account 100.7001.44210.20227 (Garden Plots) to expenditure account number 100.7001.51700.20227 (Garden Plots); 2) Authorized the appropriation of $360 from Revenue Account 100.7001.48390.20054 (Military Banners) to expenditure account number 100.7001.51780.20054 (Military Banners); 3) Accepted in the City's revenue budget three $10,000 donations for a total of $30,000 from Chapman University, Ricci Reality, and St. John's Lutheran, into revenue account number 100.7015.48390.20309 (Special Event Donations); 4) Authorized the appropriation of $30,000 from revenue account 100.7015.48390.20309 (Special Event Donations) to expenditure account number 100.7015.51355.20309 (Special Events — Contractual Services) in the amount of $20,000 and to expenditure account number 100.7015.53380.20309 (Special Events — Supplies) in the amount of $10,000; and 5) Authorized the appropriation of $17,550 from revenue account 100.7001.42480.00000 (User Group Maintenance Fees) and $16,781.84 from revenue account 100.7022.42480.00000 (User Group Maintenance Fees) for a total of $34,331.84, to expenditure account number 100.7022.51700.00000 (Contractual Services). PAGE 5 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 13, 2017 3.21 Appropriation for Microsoft Enterprise Agreement. (C2500.J.1.5) ACTION: Authorized the appropriation of $350,000 from Information Technology (790) unreserved fund balance to expenditure account 790.1601.56033.19640. 3.22 Appropriation of funds received from State of California Office of Emergency Services. (C2500.H) ACTION: Accepted into the City's revenue budget a total reimbursement of $258,240.57 in reimbursement payments into account number 100.3021.48212 — Reimbursement from OES, within the following project numbers: Description of Reimbursement Project Account Revenue Amount Holy Fire 40146 $21,524.00 Soberanes Fire 40132 4,284.80 Soberanes Fire 40132 232,431.77 Total: $258,240.57 Authorized the appropriation into expenditure account number 100.3021.50221 — Overtime- Safety, within the project numbers and amounts as follows: Description of Expenditure Project Account Expenditure Amount Holy Fire 40146 $21,524.00 Soberanes Fire 40132 4,284.80 Soberanes Fire 40132 231,224.23 Total: $257,033.03 Authorized the appropriation into expenditure account number 100.3021.53860 — Strike Team Expenditures, within the project numbers and amounts as follows: Description of Expenditure Project Account Expenditure Amount Soberanes Fire 40132 $1,207.54 Total: $1,207.54 3.23 Appropriation of funds received from Rancho Santiago Community College District (Santa Ana College) for Fire Department training hours. (C2500.11) ACTION: 1) Accepted into the City's revenue budget a $5,535.35 payment from Rancho Santiago Community College District, into revenue account 100.3023.48210.20234 — (Expense Reimbursement Santa Ana College Fire Training); and 2) Authorized the appropriation of $5,535.35 into expenditure account 100.3023.51840.20234 — (Local - Training Santa Ana College). PAGE 6 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 13, 2017 3.24 Appropriation of funds from the County of Orange for local law enforcement overtime costs. (C2500.K) ACTION: Authorized the appropriation of $21,334.41 from Other Grant Revenue unreserved fund balance to expenditure account 100.4031.50221.20159, General Fund — Post Release Community Supervision. 3.25 Bid No. 167 -47; Approval of plans and specifications for Emergency Generator for Reservoir 9A Pump Station (W -680); and authorization to advertise for bids. (C2500.M) ACTION: Approved plans and specifications and authorized advertising for bids for Emergency Generator for Reservoir 9A Pump Station. 3.26 Bid No. 167 -43; Approval of plans and specifications for Walnut Avenue Street Improvements 400 feet east of Malena Street (SP- 3988). (S4000.S.7) ACTION: Approved plans and specifications and authorized advertising for bids for Walnut Avenue Street Improvements. 3.27 CLAIMS (C3200.0) The following claim(s) have been received and investigated by the City Attorney's Office and /or the Risk Manager. After a thorough investigation with the involved departments, it is the recommendation of the City Attorney's Office that the claim(s) be denied. a. Allstate a/s /o Lilia M. Lefeber b. Maria Fernanda Grey c. Daniel Cornwell d. Jerry D. Morton e. Jason Gardner f. Jason Gardner ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. 3.28 Award of Contract for Bid No. 167 -38; Federal Highway Safety Improvement Program (HSIP) Pedestrian Crossings Upgrade at Fourteen Intersections. (A2100.0; AGR -6487) ACTION: Awarded the contract in the amount of $184,637 to ND Construction Company, Inc. of Anaheim, CA; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.29 Contract Change Order No. 1 and Final for Bid No. 156 -47; Collins Avenue Storm Drain Improvements Project (D -170). (A2100.0; AGR- 6377.1) ACTION: 1) Approved Contract Change Order No. 1 in the amount of $25,000.00 to GRBCON, Inc.; and 2) Authorized the appropriation of $19,000 from the Sanitation Fund (220) unreserved fund balance to expenditure account 220.5022.56330.30078, Streets -Bio Clean Hydro Unit Collins. PAGE 7 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 13, 2017 3.30 Award of Contract for Bid No. 167 -39; CDBG 2016 -2017 Senior Center Ceiling Improvements. (A2100.0; AGR -6489) ACTION: Awarded the contract in the amount of $30,000 to Sandwood Enterprises, Inc.; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.31 Award of Contract for Bid No. 167 -45, Glassell Street Water Quality Storm Drain Improvements, FY17. (A2100.0; AGR -6490) ACTION: 1) Appropriated $80,000 from Fund 220 (Sanitation) unreserved fund balance to project 220.5011.56330.20311; and 2) Awarded the contract to Paulus Engineering, Inc. of Anaheim, CA, in the amount of $255,068; and authorized the Mayor to execute and the City Clerk to attest the contract on behalf of the City. 3.32 Purchase of Winchester Law Enforcement ammunition from Dooley Enterprises, Inc. (C2500.K) ACTION: Authorized the sole source purchase of ammunition from Dooley Enterprises, Inc. in an amount not -to- exceed $75,400. 3.33 Purchase of Police Department uniforms and accessories from Keystone Uniforms Orange County. (C2500.K) ACTION: Authorized the purchase of uniforms and accessories from Keystone in an amount not -to- exceed $90,000. 3.34 Purchase of Firefighter safety gear and associated equipment from Allstar Fire Equipment, Inc. (C2500.H) ACTION: Authorized the purchase of Firefighter safety gear and equipment from Allstar Fire for a total of $50,000 in Fiscal Year 2017 -18. 3.35 Purchase of Firefighter turnout safety gear and additional Fire Department equipment from L.N. Curtis & Sons for Fiscal Year 2017 -18. (C2500.H) ACTION: Authorized the purchase of Firefighter turnout safety gear and equipment from L.N. Curtis & Sons for a total of $110,000 in Fiscal Year 2017 -18. 3.36 Purchase of Medical supplies from UC Regents UCI Medical Center. (C2500.H) ACTION: Authorized the Fire Department to purchase medical supplies from UC Regents UCI Medical Center in an amount not -to- exceed $50,000 for Fiscal Year 2017 -18. 3.37 Purchase of Medical supplies from Life Assist, Inc. (C2500.H) ACTION: Authorized the Fire Department to purchase medical supplies from Life Assist in an amount not -to- exceed $187,000 for Fiscal Year 2017 -18. PAGE 8 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 13, 2017 3.38 Purchase Firefighter uniforms from Keystone Uniforms Orange County. (C2500.11) ACTION: Authorized the purchase of Firefighter uniforms for an amount not -to- exceed $50,000 for Fiscal Year 2017 -18. 3.39 Purchase and installation of the PAX mixers from D &H Water Systems for Reservoir 2 and Reservoir 10. (C2500.M) ACTION: Approved the purchase and installation of the PAX mixers from D &H Water Systems in an amount not -to- exceed $98,374. 3.40 Quitclaim of drainage easement at Lemon Grove Apartments located at 1148 N. Lemon Street. (D4000.0) ACTION: Approved the quitclaim of the drainage easement quitclaim deed to Lemon Grove LP and authorize the Mayor to sign the quitclaim deed. 3.41 General Plan Annual Progress Report to the State of California. (C2300.E) ACTION: Received and filed the 2016 General Plan Annual Progress Report for submittal to the State. 3.42 Approving and adopting a statement of investment policy for Fiscal Year 2017 —18. Resolution No. 11005. (OR1800.0.27.16.2) A Resolution of the City Council approving and adopting a statement of investment policy for Fiscal Year 2017 —18. ACTION: Approved Resolution No. 11005. 3.43 Local Signal Synchronization Plan Update. Resolution No. 11006. (S4000.S.3.3) A Resolution of the City Council of the City of Orange concerning the status and update of the circulation element, local signal synchronization plan, and mitigation fee program. ACTION: 1) Approved Resolution No. 11006, 2) Approved M2 Seven -Year Capital Improvement Program; and 3) Authorized staff to submit M2 Eligibility documentation to OCTA. 3.44 Application for funds for the Environmental Cleanup, Tier 1 Grant Program under Orange County Local Transportation. Resolution No. 11007. (T2200.0) A Resolution of the City Council of the City of Orange authorizing an application for funds for the Environmental Cleanup, Tier 1 Grant Program under Measure M and further agreeing to fund project costs and additional costs over the identified program amount for installation of a bioclean hydrodynamic separator unite and connector pipe screens. ACTION: Approved Resolution No. 11007; and approved the submittal of an application for funds for the Environmental Cleanup, Tier 1 Grant Program under Orange County Local Transportation. PAGE 9 CITY COUNCIL MINUTES JUNE 13, 2017 3. CONSENT CALENDAR (Continued) MOTION — Alvarez SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Mayor pro tern Murphy recorded an abstention on Items 3.6, 3.9, and 3.21. Councilmember Nichols recorded an abstention on Item 3.12. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM MAYOR SMITH — None 5. REPORTS FROM COUNCILMEMBERS Mayor pro tem Murphy reported that the Orange County Transportation Authority approved a contract for the Metrolink Parking Structure. Construction should start this summer. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 6.1 Audit Committee; Post Vacancy Notice Pursuant to the Maddy Act. City Manager Rick Otto presented a brief staff report. The Audit Committee last met in 2011. The Committee has seven members consisting of five citizen appointed members and two staff members (Internal Audit Manager and City Manager). Currently, there are two vacancies. To reinstate the committee, Council must fill the two vacant positions. Staff also recommends asking the existing members to reapply if they are still interested in serving. During discussion, Council determined that, since the Committee has not met since 2011, all five citizen appointed positions should be posted as vacant with the three existing members reapplying if still interested in serving. There was also discussion about adding the Treasurer as a staff member to the Committee. MOTION — Whitaker SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to direct staff to post a Vacancy Notice for all five citizen appointed positions on the Audit Committee pursuant to the Maddy Act, and to add the City Treasurer as a staff member on the Committee. PAGE 10 CITY COUNCIL MINUTES JUNE 13, 2017 7. ADMINISTRATIVE REPORTS — None 8. REPORTS FROM CITY MANAGER — None 9. LEGAL AFFAIRS 9.1 Approving Zone Change No. 1280 -16 for a vacant lot located at 140 N. Hewes Street. Ordinance No. 03 -17 (Second Reading) (A2500.0) An Ordinance of the City Council of the City of Orange approving Zone Change No. 1280- 16 for the establishment of Multi - Family Residential (R -3) zoning consistent with the existing Low Medium Density Residential (LMDR) General Plan Land Use Designation for a vacant lot located at 140 N. Hewes Street. MOTION — Whitaker SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved that Ordinance No. 03 -17 be read by title only and same was approved and adopted by the preceding vote. 10. ITEMS RELATING TO THE SUCCESSOR AGENCY OF THE ORANGE REDEVELOPMENT AGENCY — None 11. PLANNING AND ENVIRONMENT 11.1 Appeal of a denial of a tree removal permit at 513 E. Chapman Ave. (A4000.0) City Manager Otto introduced the item, and Community Services Director Bonnie Hagan provided the staff report. Councilmember Alvarez provided an explanation as to why he filed the appeal citing that the trees in question are not listed on the historical tree list. Public Speakers Gina Oklejas, property owner — spoke in support of approving the tree removal permit. Tony Trabucco, Old Towne Preservation Association — opposes the removal of the trees and supports denying the appeal. Bee Kight- Herbst — spoke in support of removal of the trees. Suzy Wallace — opposes the removal of the trees and supports denying the appeal. Megan Penn — opposes the removal of the trees and supports denying the appeal. PAGE 11 CITY COUNCIL MINUTES JUNE 13, 2017 11. PLANNING AND ENVIRONMENT (Continued) Keely Ratzlaff — opposes the removal of the trees and supports denying the appeal. Jacob Ratzlaff — opposes the removal of the trees and supports denying the appeal. Angela Nichter — opposes the removal of the trees and supports denying the appeal. Janine McCormick — opposes the removal of the trees and supports denying the appeal. Ana Sonco — opposes the removal of the trees and supports denying the appeal. Tim McCormack — opposes the removal of the trees and supports denying the appeal. Katie Schroeder — spoke in support of removal of the trees. During discussion, Council discussed the tree ordinance and the health of the trees in question. The trees appear to be healthy and firmly rooted. Council values the rights of the property owner; however, there are rules and regulations that property owners in Old Towne must abide by. Council could not support the appeal, but agreed that the language within the tree ordinance needs to be reviewed. After further discussion Councilmember , Alvarez decided to withdraw the appeal. MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to withdraw the appeal. PAGE 12 CITY COUNCIL MINUTES 12. PUBLIC HEARINGS JUNE 13, 2017 12.1 Proposed Fiscal Year 2017 -18 (FY 18) City of Orange Budget and Five Year Capital Improvement Program including approval of recommended personnel action. (C2500.J.1.1) Time set for a public hearing to consider the Proposed Fiscal Year 2017 -18 (FY 18) City of Orange Operating and Capital Improvement Program Budget. City Manager Otto introduced the item and Finance Director Will Kolbow provided a staff report and answered Council's questions. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. For Fiscal Year 2016 -17: MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to authorize the appropriation of $44,000 from the AB 2766 Air Pollution Reduction Fund (245) unreserved fund balance to expenditure account 245.1401.50002.00000, Regular Salaries- Miscellaneous, and; authorize the appropriation of $75,000 from the Public Education and Government (PEG) Fund (13 0) unreserved fund balance to expenditure account 130.0000.51700.20067 Contractual Services - PEG Program for Chapman University. For Fiscal Year 2017 -18: 1) RESOLUTION NO. 11013 A Resolution of the City Council of the City of Orange amending the Citywide Salary Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5. MOTION — Whitaker SECOND — Alvarez AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11013. 2) RESOLUTION NO. 11014 A Resolution of the City Council of the City of Orange adopting said City's Budget for the Fiscal Year 2017 -18 (FY 18) City of Orange Operating Budget. MOTION — Whitaker SECOND — Alvarez AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11014. PAGE 13 CITY COUNCIL MINUTES 12. PUBLIC HEARINGS (Continued) JUNE 13, 2017 3) RESOLUTION NO. 11015 A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2017 -18. 4) Find that the portion of the Fiscal Year 2017 -18 Budget subject to the Gann limit is $95,127,861 and therefore within the limit. MOTION — Whitaker SECOND — Alvarez AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11015 and find that the portion of the Fiscal Year 2017- 18 Budget subject to the Gann limit is $95,127,861 and therefore within the limit. 5) RESOLUTION NO. 11016 A Resolution of the City Council of the City of Orange authorizing staff to submit to the Orange County Transportation Authority the Measure M2 Seven -Year Capital Improvement Program for Fiscal Year 2017 -18 through 2023 -24 to comply with Measure M2 eligibility criteria. MOTION — Smith SECOND — Nichols AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11016. 6) RESOLUTION NO. 11017 A Resolution of the City Council of the City of Orange relating to classification, compensation, and terms of employment of Executive Directors and Top Management employees and repealing Resolution No. 10946 and amendments thereto. MOTION — Nichols SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11017. PAGE 14 CITY COUNCIL MINUTES 12. PUBLIC HEARINGS (Continued) JUNE 13, 2017 12.2 Sanitation Rate Adjustment. (A2500.0) Time set for a public hearing to consider amending and revising the Master Schedule of Fees and Charges to adopt new sanitation rates. City Manager Otto introduced the item and City Engineer Frank Sun provided a staff report and answered Council's questions regarding the proposed adjustments to the residential and commercial rates. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. Chief Clerk Robert Zornado announced that 14 written protest letters were received. During discussion, Mayor pro tem Murphy brought up concerns with the proposed increase to the commercial rates if funded at the $2 million capital expenditure rate. Councilmember Whitaker realizes that the Council wants to be sensitive to rate increases, but raised concerns that if not funded at the $2 million rate, a future Council will have to increase the rates even higher to make up for the deficit. ORDINANCE NO. 04-17 (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 — Smith SECOND — Whitaker During further discussion, Council clarified that the motion was to fund the proposed sanitation rate at the $2 million capital expenditure rate. Mayor pro tem was not comfortable voting on such an aggressive five year plan especially relating to the commercial rates and would prefer a more gradual approach. Mayor Smith withdrew her motion to allow for further Council discussion. Councilmember Whitaker withdrew his second. City Manager Otto clarified that Council could decide to fund at a lower rate and gradually increase it over time. In reply to Councilmember Whitaker's question, Mr. Sun stated that it costs $1 million to repair a half mile of sewer. Council discussed funding at a lower rate; however decided it was not a viable option for the projected upkeep to the sewer lines. After further discussion Councilmember Alvarez stated he would not be able to support the Ordinance because of the proposed increase to the commercial rates. MOTION — Smith SECOND — Nichols AYES — Whitaker, Smith, Nichols NOES — Alvarez, Murphy Moved that Ordinance No. 04 -17 be approved for First Reading and same was set for Second Reading by the preceding vote. PAGE 15 CITY COUNCIL MINUTES 12. PUBLIC HEARINGS (Continued) JUNE 13, 2017 12.3 Landscape Maintenance Assessment District 86 -2 (Santiago Hills). (L1200.0) NOTE: Councilmember Nichols recorded an abstention on Items 12.3 and 12.4 due to a potential conflict with a nearby property interest. She left the dais at 10:29 p.m. Time set for a public hearing to consider the Engineer's Report for the Annual Assessment for Landscape Maintenance Assessment District 86 -2, which is located in Santiago Hills. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. 1) RESOLUTION NO. 11008 A Resolution of the City Council of the City of Orange approving the Engineer's Report and providing for the Annual Assessment for Landscape Maintenance District 86 -2 (Santiago Hills). 2) Establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 86 -2 at $369.44 per single family detached unit per year. MOTION — Whitaker SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to approve Resolution No. 11008 and establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 86 -2 at $369.44 per single family detached unit per year. 12.4 Landscape Maintenance Assessment District 15 -1 (Santiago Hills Overlay) (L1200.0) NOTE: Councilmember Nichols recorded an abstention on Items 12.3 and 12.4 due to a potential conflict with a nearby property interest. She left the dais prior to Item 12.3 being heard. Time set for a public hearing to consider the Engineer's Report for the Annual Assessment for Landscape Maintenance Assessment District 15 -1, which is located in Santiago Hills. THE MAYOR OPENED THE PUBLIC HEARING. Public Speakers Morgan Nelson — spoke in opposition to the proposed increase in the assessment. THE MAYOR CLOSED THE PUBLIC HEARING. PAGE 16 CITY COUNCIL MINUTES JUNE 13, 2017 12. PUBLIC HEARINGS (Continued) 1) RESOLUTION NO. 11009 A Resolution of the City Council of the City of Orange approving the Engineer's Report and providing for the Annual Assessment for Landscape Maintenance District 15 -1 (Santiago Hills Overlay). 2) Establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 15 -1 at $244.49 per single family detached unit per year. MOTION — Whitaker SECOND — Alvarez AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to approve Resolution No. 11009 and establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 15 -1 at $244.49 per single family detached unit per year. Councilmember Nichols returned to the dais at 10:45 p.m. 12.5 Landscape Maintenance Assessment District 94 -1 (Sycamore Crossing) (L1200.0) Time set for a public hearing to consider the Engineer's Report for the Annual Assessment for Landscape Maintenance Assessment District 94 -1, which is located along Santiago Creek. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. 1) RESOLUTION NO. 11010 A Resolution of the City Council of the City of Orange approving the Engineer's Report and providing for the Annual Assessment for Landscape Maintenance District 94 -1 (Sycamore Crossing). 2) Establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 94 -1 at $293.08 per single family detached unit per year. MOTION — Murphy SECOND — Nichols AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11010 and establish the Assessment for Fiscal Year 2017 -18 for Landscape Maintenance Assessment District 94 -1 at $293.08 per single family detached unit per year. PAGE 17 CITY COUNCIL MINUTES 12. 12.6 13. PUBLIC HEARINGS (Continued) JUNE 13, 2017 Solid waste collection and disposal services rate adjustment. (C2500.M.1) Time set for a public hearing to consider approving revised rates for solid waste collection and disposal services. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. RESOLUTION NO. 11011 A Resolution of the City Council of the City of Orange approving the revised rates for solid waste collection and disposal services. MOTION — Murphy SECOND — Alvarez AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 11011. ADJOURNMENT — The City Council adjourned at 10:56 p.m. The next Regular City Council Meeting will be held on Tuesday, July 11, 2017, at 4:30 p.m. for an Employee Recognition and the Regular Meeting at 6:00 p.m. in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary. C4, M URPHY CITY CLERK TERESA E. SMITH MAYOR PAGE 18