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Council Minutes 06/09/15APPROVED BY THE CITY COUNCIL ON JULY 14, 2015 CITY COUNCIL ORANGE, CALIFORNIA MEETING MINUTES JUNE 9, 2015 The City Council of the City of Orange, California convened on June 9, 2015, at 4:00 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:00 P.M. SESSION 1. ROLL CALL PRESENT — Alvarez, Whitaker, Smith, Murphy, Nichols ABSENT — None 2. ORAL COMMUNICATIONS — None 3. RECESS TO CLOSED SESSION a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiators: Laura Kalty, Special Counsel, Mike Harary, Assistant Human Resources Director, Will Kolbow, Finance Director and Lisa Kim, Economic Development Manager. Employee Organizations: All bargaining groups. 4. ADJOURN TO REGULAR MEETING — At 6:13 p.m. the City Council adjourned the Closed Session to its Regular Meeting on Tuesday, June 9, 2015, in the Council Chambers. CITY COUNCIL MINUTES 6:00 P.M. SESSION 1. OPENING 1.1 INVOCATION Given by Pastor Rick Olsen, Beacon Church. 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilmember Mark A. Murphy. 1.3 ROLL CALL PRESENT — Alvarez, Whitaker, Smith, Murphy, Nichols ABSENT — None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS JUNE 9, 2015 Mayor Smith announced that personalized bricks can be purchased from the Community Services Department for placement at the Hart Park Bandshell. Mayor Smith announced the 3` of July celebration at Fred Kelly Stadium. Mayor Smith announced the Concerts in the Park series at Hart Park every Wednesday evening beginning on June 24, 2015. Presentation of a Military Banner to Michael Paulsen. Presentation of a Retirement Resolution for Pat Buttress, Orange Planning Commissioner. Memorial Adjournment for Jo Barrera, wife of Mayor Pro Tem Emeritus Fred Barrera. 2. PUBLIC COMMENTS Brian Lochrie — spoke in opposition to the proposed changes to the Chapman University Specific Plan. Nancy Collins — spoke in opposition to the proposed changes to the Chapman University Specific Plan. Brian Weitz — spoke in opposition to the proposed changes to the Chapman University Specific Plan. PAGE 2 CITY COUNCIL MINUTES 2. 3. 3.1 3.2 3.3 3.4 3.5 PUBLIC COMMENTS (Continued) JUNE 9, 2015 Carol Kennedy — spoke in opposition to the proposed changes to the Chapman University Specific Plan. Aaron Shahrestani — spoke regarding concerns related to soccer programs in Orange. Janet Offhaus — spoke regarding mobile home park space rent increases and the need for affordable housing protections in the City of Orange. Judy Schroeder — spoke in opposition to the proposed changes to the Chapman University Specific Plan. Arianna Barrios — spoke in opposition to the proposed changes to the Chapman University Specific Plan. 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. Confirmation of warrant registers dated, May 7, 14, 21, and 28, 2015. ACTION: Approved. City Council Minutes, Regular Meeting of May 12, 2015. (C2500.D.4) ACTION: Approved. Waive reading in full of all ordinances on the Agenda. ACTION: Approved. Investment Oversight Committee Report for the period ending May 31, 2015. (OR1800.0.27.16) ACTION: Received and filed. City of Orange "Standards of Cover Assessment 2015" study conducted by Citygate Associates, LLC on behalf of the Orange City Fire Department. (C2500.H) ACTION: Received and filed. PAGE 3 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 9, 2015 3.6 Approval of expenditure for City of Orange Fire Department's Strategic Plan. (C2500.A.2) ACTION: 1) Approved the expenditure for the Fire Department's Strategic Plan to be performed on a sole source basis by Citygate Associates, LLC; and 2) Authorized the purchase of the Strategic Plan study from expenditure account 100.3011.51670.00000 (Other Professional and Consulting Services) in the amount of $49,360. AGREEMENTS 3.7 Agreement with California Forensic Phlebotomy (CFP), Inc. to take evidence in incidents that involve DUI and drugs for the Police Department. (A2100.0 Agr- 1626.R) ACTION: Approved the Consultant Services Agreement between the City of Orange and CFP in an amount not to exceed $100,000 and authorized the Mayor and the City Clerk to execute on behalf of the City. 3.8 Agreement with TriTech Software Systems (formerly VisionAIR) for software upgrades and maintenance for the Police Department's computer -aided dispatch and records management system (CADIRMS). (A2100.0 Agr- 3217.N) NOTE: Councilmember Murphy recorded an abstention due to a potential conflict with employment. ACTION: Approved the Consultant Services Agreement between the City of Orange and TriTech Software Systems in the amount of $103,068.58 and authorized the Mayor and the City Clerk to execute on behalf of the City. 3.9 Agreement with Judicial Data Systems Corporation (JDS) for parking citation processing for the Police Department. (A2100.0 Agr - 3553.0) NOTE: Councilmember Murphy recorded an abstention due to a potential conflict with employment. ACTION: Approved the Consultant Services Agreement between the City of Orange and JDS in an amount not to exceed $50,000 and authorized the Mayor and the City Clerk to execute on behalf of the City. 3.10 Agreements with County of Orange for Provision of Point of Dispensing (POD) Site Equipment Services and Provision of Point of Dispensing Site Services. (A2100.0 Agr - 6229) ACTION: When received from the County, approve the Agreements between the City of Orange and County of Orange Provision of Point of Dispensing (POD) Site Equipment Services and Provision of Point of Dispensing Site Services and authorized the Mayor and the City Clerk to execute the agreement on behalf of the City. PAGE 4 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 9, 2015 3.11 Affordable Housing Loan Agreement by and between the City of Orange and Lemon Grove, LP Relating to 1148 North Lemon Street. (A2100.0 Agr -6230) ACTION: 1) Approved Resolution No. 10869 - A Resolution of the City Council of the City of Orange Approving an Affordable Housing Loan Agreement by and between the City of Orange and Lemon Grove, LP relating to 1148 North Lemon Street and Making Certain Findings; and 2) Authorized the City Manager to execute the Agreement and all related documents on behalf of the City. 3.12 Agreement with Willdan Financial Services to perform special district administration, delinquency management, arbitrage rebate, and municipal disclosure services. (A2100.0 Agr- 5596.A) NOTE: Councilmember Nichols recorded an abstention due to a nearby property interest. ACTION: Approved and authorized the Mayor and City Clerk to execute the agreement with Willdan Financial Services on behalf of the City. 3.13 Second Amendment to SirsiDynix Migration to Unicorn Software License and Purchase Agreement (AGR #4384) for maintenance support of SirsiDynix online library catalog software. (A2100.0 Agr- 4384.A.2)) NOTE: Councilmember Murphy recorded an abstention due to a potential conflict of employment. ACTION: Approved the amendment and authorized the Mayor and City Clerk to execute on behalf of the City. BIDS 3.14 Bid No. 145 -37; Sewer Line Cleaning and Video Inspection, rejection of all bids. (C2500.M.3) ACTION: 1) Rejected all bids received; and 2) Authorized staff to re- advertise this project with a reduced scope of work. 3.15 Bid No. 145 -52; Bus Stop Enhancements at Seven Locations Citywide Project, rejection of all bids. (S4000.S.3.1.4) ACTION: 1) Rejected all bids received; 2) Accepted into the City's revenue budget a $145,446 grant from Orange County Transportation Authority (OCTA) into revenue account number 550.5011.45110.30076 Bus Stop Enhancements; and 3) Authorized the appropriation of $145,446 into expenditure account number 550.5011.56100.30076 for the Bus Stop Enhancements. PAGE 5 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 9, 2015 3.16 Bid No. 145 -57; Drought Resistant Landscape Renovation of the Water Plant Headquarters and South Yard (W -673); and approval of plans and specifications and authorization to advertise for bids. (C2500.M) ACTION: Approved plans and specifications and authorized advertising for bids for the Drought Resistant Landscape Renovation for Water Plant Headquarters and South yard Project (W -673). 3.17 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. Thomas James Dawkins, Jr. ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. CONTRACTS 3.18 Award of Contract - Bid No. 145 -53; Sewer Line Replacement at Various Locations Project, FY 2014 -15. (A2100.0 Agr -6231) ACTION: 1) Approved Vasily Company, Inc. of Shadow Hills withdrawal bid request; and 2) Accepted the next lowest bid, and awarded the contract to Vasiy, Inc. of Irwindale, California, in the amount of $1,043,300 and authorized the Mayor and City Clerk to execute the contract on behalf of the City. 3.19 Award of Contract - Bid No.145 -39; Well No. 27 Equipping Plan (W -659). (A2100.0 Agr -6232) ACTION: 1) Transferred $300,000.00 from Account No. 600.8011.56411.18120 (Well 28 Construction) to Account No. 600.8011.56411.18119 (Well 27 Construction); 2) Authorized the appropriation of $200,000.00 from the Water Fund Unreserved Fund Balance to Account No. 600.8011.56411.18119 (Well 27 Construction); and 3) Awarded a contract in the amount of $2,244,587.00 to Cora Constructors, Inc. and authorized the Mayor and City Clerk to execute the necessary documents on behalf of the City. 3.20 Final Acceptance of Bid No. 145 -03; Glassell St. and Palm Ave. Intersection Traffic Signal Installation project performed by Elecnor Belco Electric, Inc., and authorization to file the Notice of Completion with the County Recorder. No staff report required.) (A2100.0 Agr -6169) ACTION: Accepted public work improvements, authorized release of Fidelity and Deposit Co. of Maryland Bond No. PRF9172210 in the amount of $293,000.00 to the contractor on said job, and authorized the Mayor and City Clerk to execute the Notice of Completion. PAGE 6 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) JUNE 9, 2015 3.21 Contract Change Order No. 2 and Final for Agreement No. 6168; Installation of network cabling for Civic Center Administration, Public Works, Community Services, Corporation Yard Fleet, and other City off - campus buildings Project. (A2100.0 Agr -6168) ACTION: Approved Contract Change Order No. 2 and Final in the amount of $11,500 to GA Technical Services, Inc. PURCHASES 3.22 Purchase of Winchester Law Enforcement ammunition from Dooley Enterprises, Inc. as a sole source vendor for fiscal year 2015 -16. (C2500.K) ACTION: Authorized the purchase of Police Department ammunition from Dooley Enterprises, Inc. in the amount of $70,000 for fiscal year 2015 -16. 3.23 Purchase of Police Department uniforms and accessories from Keystone Uniforms OC through a cooperative purchasing agreement for fiscal year 2015 -16. (C2500.K) ACTION: Authorized purchase of Police Department uniforms from Keystone Uniforms OC in the amount of $90,000. 3.24 Approve the purchase of two aerial lift trucks for a total amount of $291,007.20. (C2500.M) ACTION: Authorized the purchase of two aerial lift trucks from Altec Industries, Inc. and authorized the City Manager to surplus the replaced vehicles. RESOLUTIONS 3.25 RESOLUTION NO. 10866 (OR1800.0.27.16.2) A Resolution of the City Council of the City of Orange approving and adopting a Statement of Investment Policy for Fiscal Year 2015 -16. ACTION: Approved. 3.26 RESOLUTION NO. 10872 (C2500.M) 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 Orange County Local Transportation Ordinance No. 3 for installation of a Bio Clean Hydrodynamic Separator Unit and Connector Pipe Screens. ACTION: Approved. PAGE 7 CITY COUNCIL MINUTES JUNE 9, 2015 3. CONSENT CALENDAR (Continued) 3.27 RESOLUTION NO. 10873 (C2300.E) A Resolution of the City Council of the City of Orange concerning the status of the Circulation and Mobility Element and Mitigation Fee Program for the City of Orange. ACTION: Approved. (REMOVED AND HEARD SEPARATELY) 3.28 RESOLUTION NO. 10874 (C2500.G.2.5.2) A Resolution of the City Council of the City of Orange expressing appreciation and commending Patricia "Pat" Buttress for four and one -half years of dedicated service to the Planning Commission. NOTE: Item 3.28 was removed from the Consent Calendar and approved prior to Presentations. MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution 10874. SPECIAL EVENTS 3.29 Request to close the Orange Public Libraries to accommodate various events and holidays in FY 2015 -16. (C2500.I) ACTION: Approved the closure of the Orange Public Library & History Center (OPL & HC) and the two branches (Taft & El Modena) as follows: Friday & Saturday, July 3 d & 4th (all branches closed); Friday, September 4 (OPL & HC closed from 2:30 - 6 p.m.); Saturday, September 5 th (OPL & HC closed all day); and Monday, January 18 (all branches closed all day). MOTION — Alvarez SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Councilmember Murphy recorded an abstention on Items 3.8, 3.9, and 3.13. Councilmember Nichols recorded an abstention on Item 3.12. Item 3.28 was removed from the Consent Calendar and approved prior to Presentations. All other items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR PAGE 8 CITY COUNCIL MINUTES JUNE 9, 2015 4. REPORTS FROM MAYOR SMITH 4.1 Appointment(s) to the City of Orange Planning Commission. Councilmember Murphy recommended appointing Doug Willits to fill Pat Buttress' unexpired term to the Planning Commission. MOTION — Murphy SECOND — Smith AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to appoint Doug Willits to the City of Orange Planning Commission. 5. REPORTS FROM COUNCILMEMBERS Councilmember Alvarez reported that he attended the International Council of Shopping Center Developers (ICSC) Show; the malls and shopping centers in Orange are doing very well; and the City is working with Costco to bring a store to Orange. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 6.1 Accept the Resignation of William Steiner from the Planning Commission, Effective June 30, 2015; Post Vacancy Notice Pursuant to the Maddy Act. MOTION — Whitaker SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to accept the resignation of William Steiner from the Planning Commission effective June 30, 2015, and post the Notice of Vacancy. 7. ADMINISTRATIVE REPORTS 7.1 Resolution of Support for a Year - Around Homeless Emergency Shelter and Multi Service Center for North Orange County. (C2500.E) NOTE: Councilmember Alvarez recorded an abstention due to a nearby property interest and left the dais. PAGE 9 CITY COUNCIL MINUTES JUNE 9, 2015 7. ADMINISTRATIVE REPOPRTS (Continued) Public Speakers The following all spoke in opposition to the proposed shelter: Chris Vance Michael Chew Karen McMahon Tim Nichelson William Abbott Discussion — Council discussed how the shelter is proposed to be a multi - service center; the location is an industrial area zoned for this purpose with the freeway acting as a natural barrier; and the proposed shelter is still in the early planning stages. Council asked staff to facilitate providing the community with information regarding the proposed shelter including the community town hall meeting dates and locations. Interim City Manager Otto stated that staff would post information as it became available. RESOLUTION NO. 10875 A Resolution of the City Council of the City of Orange offering support for the County of Orange's efforts to develop a year -round homeless emergency shelter and multi - service center for North Orange County. MOTION — Whitaker SECOND — Smith AYES — Whitaker, Smith, Murphy, Nichols ABSENT (RECUSED) — Alvarez Moved to approve Resolution No. 10875. NOTE: Councilmember Alvarez returned to the dais at 8:06 p.m. 8. REPORTS FROM CITY MANAGER 8.1 Irvine Ranch Water District (IRWD) application to Local Agency Formation Commission (LAFCO) regarding provisions for Sewer Service in the City of Orange Sphere of Influence specifically Orange County Sanitation District (OCSD) Area 7. (OC1300.G.3) Public Speaker Lisa Ohlund, East County Water District — requested that Council only support the East Orange County Water District application. PAGE 10 CITY COUNCIL MINUTES JUNE 9, 2015 8. REPORTS FROM CITY MANAGER (Continued) Discussion — Mayor pro tem Whitaker discussed the timing of the letter and his preference for East County Water District. Mayor Smith agreed with Mayor pro tern Whitaker and stated she was going to stay consistent with how she has already voted as a member of the Orange County Sanitation District. Councilmember Alvarez and Councilmember Murphy thought the intent of the Council was to support both agencies' (IRWD and East Orange County Water District) applications. Although Councilmember Nichols agreed that the Council was going to consider supporting IRWD's application, she stated that she thought the City would be better served by a local water district. MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Murphy NOES — Whitaker, Smith, Nichols Moved to authorize a letter of support for IRWD's application for the transfer of OCSD Area 7 local sewer service to Orange County Local Agency Formation Commission (LAFCO). MOTION FAILED Other Reports from the City Manager Interim City Manager Otto announced that the community town hall meeting for the Metrolink parking structure project has been scheduled for July 8, 2015, at 5:30 p.m. in the Library Community Room. Interim City Manager Otto introduced Bill Crouch, the new Community Development Director. Interim City Manager Otto announced that the Phase 1 Council Chamber improvements will take place before the next Council Meeting which includes the installation of new high definition cameras. 9. LEGAL AFFAIRS — None 10. ITEMS RELATING TO THE SUCCESSOR AGENCY OF THE ORANGE REDEVELOPMENT AGENCY — None PAGE 11 CITY COUNCIL MINUTES JUNE 9, 2015 11. PUBLIC HEARINGS NOTE: The following item was re- ordered and heard before Item 4.1. 11.1 Landscape Maintenance District 15 -1 (L1200.0) Time set for a public hearing to consider the proposed Landscape Maintenance District No. 15 -1 assessment. NOTE: Councilmember Nichols recorded an abstention due to a potential conflict with a nearby property interest and left the dais. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to close the balloting period, and direct the City Clerk, as tabulator, to tabulate all ballots received. MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to continue the public hearing to July 14, 2015, to announce the results of the balloting and, if successful, to consider levying the assessments. NOTE: Councilmember Nichols returned to the dais at 7:23 p.m. 11.2 Landscape Maintenance District 86 -2 (Santiago Hills). (L1200.0) 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 within the Upper Peters Canyon Specific Plan Area (Santiago Hills). NOTE: Councilmember Nichols recorded an abstention due to a potential conflict with a nearby property interest and left the dais. Deputy Director of Public Works /City Engineer Frank Sun provided a brief staff report stating that there is no change to the existing assessment. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. PAGE 12 CITY COUNCIL MINUTES 11. 11.3 PUBLIC HEARINGS (Continued) JUNE 9, 2015 RESOLUTION NO. 10870 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). MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to approve Resolution No. 10870. MOTION — Murphy SECOND — Whitaker AYES — Alvarez, Whitaker, Smith, Murphy ABSENT (RECUSED) — Nichols Moved to establish the Assessment for Fiscal Year 2015 -16 for Landscape Maintenance Assessment District 86 -2 at $369.44 per single family unit per year. NOTE: Councilmember Nichols returned to the dais at 8:34 p.m. Landscape Maintenance 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 in the Sycamore Crossing Tract. Deputy Director of Public Works /City Engineer Frank Sun provided a brief staff report stating that there is no change to the existing assessment. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. RESOLUTION NO. 10871 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). MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 10871. PAGE 13 CITY COUNCIL MINUTES JUNE 9, 2015 11. PUBLIC HEARINGS (Continued) MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to establish the Assessment for Fiscal Year 2015 -16 for Landscape Maintenance Assessment District 94 -1 at $293.08 per single family unit per year. RECESS: The City Council took a short recess at 8:39 p.m. and reconvened at 8:51 p.m. with all members present. 11.4 Proposed Fiscal Year 2015 -16 (FY 16) City of Orange Budget and Seven Year Capital Improvement Program including approval of recommended personnel actions. (C2500.J.1.1) Time set for a public hearing to consider the Proposed Fiscal Year 2015 -16 (FY 16) City of Orange Operating Budget. Interim City Manager Otto introduced the item and Finance Director Will Kolbow presented the staff report utilizing a PowerPoint presentation. Mr. Kolbow reviewed the budget process acknowledging staff's time and effort. This is the fourth consecutive year that the City has produced a balanced budget. He explained that there have not been very many changes since the two budget study sessions that took place earlier this year. General Fund revenues for FY 2016 are estimated at $102.3 million and General Fund expenditures are estimated at $101.6 million. Mr. Kolbow reviewed available reserves and all other major fund budgets, and summarized fiscal year highlights. THE MAYOR OPENED THE PUBLIC HEARING; AND THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING. FY 2015 -16: RESOLUTION NO. 10867 A Resolution of the City Council of the City of Orange Adopting said City's Budget for the Fiscal Year 2015 -16 and Relating to Transfers of Funds between and within Appropriations, Transfers between Funds, and additional Appropriations. MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 10876. PAGE 14 CITY COUNCIL MINUTES 11. PUBLIC HEARINGS (Continued) RESOLUTION NO. 10868 JUNE 9, 2015 A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2015 -16. MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to approve Resolution No. 10868. MOTION — Alvarez SECOND — Murphy AYES — Alvarez, Whitaker, Smith, Murphy, Nichols Moved to find that the portion of the Fiscal Year 2015 -16 Budget subject to the Gann limit is $89,913,761, and therefore within the limit. NOTE: The following item was re- ordered and heard before Item 11.4. 11.5 Appeal 0539 -15 — Century Theatres, 1701 West Katella Avenue. (A4000.0) Time set for a public hearing to consider an appeal of the Planning Commission's denial of a conditional use permit to serve beer and wine at an existing movie theater under a State Alcohol and Beverage Control (ABC) Type 41 License. Senior Planner Chad Ortlieb presented the staff report and read the applicant's statement into the record. Lieutenant Dave Nichols, Orange Police Department, answered Councilmember Alvarez's questions regarding a similar conditional use permit approved at another theater chain location. Public Speaker Steve Rawlings, applicant — requested that Council approve the appeal. He submitted a revised alcohol service policy and reviewed the process for the purchasing and monitoring of alcoholic beverages. Councilmember Alvarez asked if the theater would consider using servers to sell alcoholic beverages rather than a designated concession stand. Mr. Rawlings explained that using servers would be operationally difficult because of the theater layout. Discussion — Mayor pro tem Whitaker stated that he thought the proposed controls would be sufficient and understands that the theater must change to stay competitive. Councilmember Murphy stated that he was concerned with some of the issues that the Police Department had mentioned; however, is willing to support the applicant with the proposed changes and restrictions being put into place along with a 12 month review process. Councilmember Alvarez is still concerned with minors being present in the same theaters as those being served alcohol. Councilmember Nichols was also concerned with minors being present but is inclined to support the application with all the restrictions and safeguards that the applicant is proposing to put into place. PAGE 15 CITY COUNCIL MINUTES JUNE 9, 2015 11. PUBLIC HEARINGS (Continued) MOTION — Whitaker SECOND — Murphy AYES — Whitaker, Smith, Murphy, Nichols NOES — Alvarez Moved to uphold appeal No. 539 -15 with revised conditions. Staff directed to return with a resolution, reviewed by the Orange Police Department, approving CUP No. 2960 -14 with the revised alcohol policy and modifications to condition numbers 13, 19, 21 and 37 pursuant to the staff report. 12. ADJOURNMENT — The City Council adjourned at 10:03 p.m. in memory of Jo Barrera, wife of Mayor Pro Tern Emeritus Fred Barrera. The next Regular City Council Meeting will be held on Tuesday, July 14, 2015, at 6:00 p.m., with Closed Session beginning at 5:00 p.m., if necessary. C- N Or MURPHY CITY CLERK TERESA E. SMITH MAYOR PAGE 16