06-10-2014 Council MinutesAPPROVED BY THE CITY COUNCIL ON JULY 8, 2014
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
June 10, 2014
The City Council of the City of Orange, California convened on June 10, 2014, 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. ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT - None
2. ORAL COMMUNICATIONS - None
3. EMPLOYEE RECOGNITION
Recognition of 2014 Orange Leadership Academy Graduates
Recognition of Employee Service
4. RECESS
The City Council recessed at 5:15p.m. to the Closed Session. The next regular City
Council meeting will be held on Tuesday June 10, 2014, at 6:00 p.m. in the Council
Chambers.
CITY COUNCIL MINUTES
5:00 P.M. SESSION
1. ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT - None
2. ORAL COMMUNICATIONS - None
3. RECESS TO CLOSED SESSION
Note: The City Attorney announced that Section a would not be discussed.
June 10, 2014
a. Conference with Legal Counsel — Existing Litigation pursuant to Government Code
Section 54956.9(a).
Case: City of Orange v. County of Orange, et. al.
Orange County Superior Court Case No. 30- 2010- 00338820CU -TT-
CXC.
b. Public employee performance evaluation pursuant to Government Code Section
54957:
Title: City Manager
4. ADJOURNMENT
The City Council adjourned the Closed Session to its Regular Meeting on Tuesday,
June 10, 2014, at 6:00 p.m. in the Council Chambers.
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CITY COUNCIL MINUTES
6:00 P.M. SESSION
1. OPENING
1.1 INVOCATION
Given by Father Neil Edlin, St. Mary Magdalene Anglican Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Mark A. Murphy
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT -None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Presentation by the Sons of Italy to the Orange Public Library
June 10, 2014
Presentation of Retirement Resolution to Finance Director Richard K. Jacobs
Foundation Games: The Community Foundation of Orange honored the Police and Fire
Departments
Mayor Smith announced the Concerts in the Park series begins on June 25 at 7:00
p.m. in the Hart Park band shell area.
Mayor Smith announced that the 3 of July celebration will be held at the Fred Kelly
Stadium beginning at 4:00 p.m.
Memorial Adjournment for Jess Fuentes Perez a longtime Councilmember and former
Mayor of the City of Orange
2. PUBLIC COMMENTS
Michael Gaughen — Spoke concerning the need for a marked, paved bike lane on
Chapman Avenue between Cannon and Lewis. Mayor Smith stated that staff would
contact him.
Martha Espiritu, Project Path Health Educator — spoke on efforts to control drinking
and driving through a program for drink servers.
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CITY COUNCIL MINUTES
3. CONSENT CALENDAR
June 10, 2014
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 8, 15, 22, 29, and June 5, 2014.
ACTION: Approved.
(REMOVED AND HEARD SEPARATELY)
3.2 City Council Minutes, Special Meeting of April 22, 2014, and Regular Meeting of
May 13, 2014. (C2500.D.4)
NOTE: Councilmember Bilodeau requested the minutes from April 22, 2014, be
changed on page 3 to replace the words "asked about the wisdom" to "advocated" in
regard to sending money to PERS ahead of schedule.
MOTION - Bilodeau
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve with the change to the April 22 minutes.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Investment Oversight Committee Report, period ending May 31, 2014.
(OR1800.0.27.16)
ACTION: Received and filed.
AGREEMENTS
(REMOVED AND HEARD SEPARATELY)
3.5 Agreement with TriTech Software Systems for Software Upgrades and
Maintenance for the Police Department's Computer -aided Dispatch and Records
Management System, in the amount of $102,915.78. (A2100.0 Agr- 3217.M)
NOTE: Councilmember Murphy recused himself due to a potential conflict with his
employment and left the dais.
Discussion — Mayor pro tem Whitaker stated the management assessment had
identified the need to look at new systems. He asked that a one -year term provision be
added to this agreement and requested a report back in one year on whether this system
would be kept, or there is a need to go out to bid for a new system.
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
MOTION - Whitaker
SECOND - Smith
AYES - Alvarez, Whitaker, Smith, Bilodeau
ABSENT (RECUSED) - Murphy
Moved to approve agreement with the inclusion of a one -year term provision and
authorize the Mayor and the City Clerk to execute on behalf of the City.
3.6 Agreement with Judicial Data Systems Corporation for Parking Citation
Processing for the Police Department, in an amount not -to- exceed $50,000.00.
(A2100.0 Agr- 3553.N)
ACTION: Approved the agreement and authorized the Mayor and the City Clerk to
execute on behalf of the City.
3.7 Agreement with California Forensic Phlebotomy, Inc., for Evidence Collection in
Incidents that involve DUI and Drugs, in an amount not -to- exceed $123,000.00.
(A2100.0 Agr- 1626.Q)
ACTION: Approved the agreement and authorized the Mayor and the City Clerk to
execute on behalf of the City.
3.8 Agreement with The Jungle Nursery, Inc., for Weed Abatement Services, FY2014-
15, in the amount of $96,250.00. (A2100.0 Agr- 6044.A)
ACTION: Approved the agreement and authorized the Mayor and the City Clerk to
execute on behalf of the City.
3.9 Agreement with Fleming Environmental Inc., for Installation of an Irrigation
Booster Pump at La Veta Park, in the amount of $78,388.00. (A2100.0 Agr -6105)
ACTION: Approved the agreement and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.10 Agreement with J &S Construction to provide Demolition and Hardscape
Installation work at El Modena Park, in the amount of $43,792.00 (A2100.0 Agr -
6106)
ACTION: Approved the agreement and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.11 First Amendment to Agreement with Mary's Kitchen for Food and Human
Services Program. (A2100.0 Agr- 2059.C.1)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
3.12 Lease Agreement with Selman Chevrolet to Ground Lease the Vacant City -owned
Remnant Parcel located at the Southeast Corner at Chapman Avenue and Tustin
Street. (A2100.0 Agr -6107)
ACTION: Approved the lease agreement and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.13 First Amendment to SirsiDynix Migration to Unicorn Software License and
Purchase Agreement for Maintenance and Support of SirsiDynix Online Library
Catalog Software. (A2100.0 Agr- 4384.A.1)
NOTE: Councilmember Murphy abstained due to a potential conflict with his
employment.
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.14 Fourth Amendment to Agreement with Major League Softball, Inc., for Sports
Field Maintenance Services, in an amount not -to- exceed $40,000.00. (A2100.0
Agr - 5544.4)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.15 Third Amendment to Agreement with Merchants Building Maintenance, LLC, for
Custodial Services for All City Buildings, in the amount of $534,706.96. (A2100.0
Agr- 5776.3)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City
3.16 Third Amendment to Agreement with Innerline Engineering, Inc., for Sewer Line
Cleaning, Video Inspection, and Emergency Response Services, in the amount of
$250,000.00. (A2100.0 Agr - 5788.3)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City
3.17 Second Amendment to Agreement with CSG Consultants, Inc., for Plan Review
and Field Inspection Services for the Building Division, in an amount not -to-
exceed $20,000.00, for a total contract amount of $110,000.00. (A2100.0 Agr -
3375.L2)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
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CITY COUNCIL MINUTES
June 10, 2014
3.18 Second Amendment to Agreement with Chattel, Inc., for Historic Preservation
Customer Service, in an amount not -to- exceed $5,000.00, for a total contract
amount of $65,000.00. (A2100.0 Agr- 6008.2)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City
3.19 First Amendment to Agreement with HR Green California, Inc., for an Interim
Chief Building Official to Advise and Provide Leadership to the Building Division,
in an amount not -to- exceed $60,000.00, for a total contract amount of $90,000.00.
(A2100.0 Agr- 6068.1)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.20 Third Amendment to Agreement with Orange County Striping Service for the
Installation of Traffic Striping, Pavement Markings, and Raised Pavement
Markers at Various Locations, in an amount not -to- exceed $116,150.00. (A2100.0
Agr - 5785.3)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.21 Third Amendment to Agreement with Siemens Industry, Inc./Republic Intelligent
Transportation Services to provide Emergency Response Services for Traffic
Signals /Flashers and Street Lighting Maintenance, in the amount of $40,000.00.
(A2100.0 Agr - 5713.3)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
(REMOVED AND HEARD SEPARATELY)
3.22 Agreement with HdL Coren & Cone for Property Tax Consulting /Audit Services.
(A2100.0 Agr- 4938.B)
Discussion — Finance Director Rich Jacobs responded to a question by Councilmember
Bilodeau stating that the purpose of the agreement was to ensure that property taxes
end up in the coffers of the correct jurisdiction.
Councilmember Bilodeau requested that Mr. Jacobs monitor the services so that the
sales tax from inmate's purchases at the Theo Lacy jail ends up in Orange's coffers.
MOTION - Bilodeau
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve the agreement and authorized the Mayor and City Clerk to execute
on behalf of the City.
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
APPROPRIATIONS
3.23 Appropriation of Payment from the Santiago Library System of $6,283.00.
(C2500.I)
ACTION: 1) Accepted in the City's revenue budget a $6,283.00 payment from the
Santiago Library System into revenue Account No. 100.2001.48390.19988
(Donations); and 2) Appropriated the Santiago Library System payment to expenditure
Account No. 100.2001.53301.19988 (Library Books).
3.24 Appropriation of a $221,325.00 Grant from the Federal Bridge Preventive
Maintenance Program to the Structural Evaluation of City Bridges Project (CIP
No. 13816) to cover project costs. (C2500.M)
ACTION: 1) Accepted a $221,325.00 grant from BPMP into revenue Account No.
550.5011.45150.13816; 2) Appropriated the $221,325.00 into expenditure Account No.
550.5011.56670.13816 (BPMP — Structural Evaluation of City Bridges); and 3)
Appropriated $8,675.00 from the Gas Tax unreserved fund balance (Fund 272) to
Account No. 272.5011.56670.13816 (Gas Tax — Structural Evaluation of City Bridges).
BIDS
3.25 Bid No. 145 -02; Annual Pipeline Renewal Project. Approve plans and
specifications and authorization to advertise for bids. (C2500.P)
ACTION: Approved plans and specifications and authorized advertising for bids for
the construction of the Annual Pipeline Renewal Project.
3.26 Bid No. 145 -01; Asphalt Replacement at Various Locations for Fiscal Year 2014-
15. Approve plans and specifications and authorization to advertise for bids.
(S4000.S.7)
ACTION: Approved plans and specifications and authorized advertising for bids for
the Asphalt Replacement at Various Locations for Fiscal Year 2014 -2015.
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.
Lou Ann Kelly
b.
Sherry J. Haviland
C.
Julian Cabrera
d.
Deborah McClain
e.
Joaquin Zepeda
f.
Robert James Zepeda
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
CONTRACTS
3.28 Final Acceptance of Bid No. 134 -15; Pipeline Replacement for Chapman Avenue
from Lemon Street to Grand Street project performed by Atlas- Allied, Inc.; and
authorization to file Notice of Completion with the County Recorder No staff
report required (A2100.0 Agr -6065)
ACTION: Accepted public work improvements, authorized release of contractors
bonding and Insurance Company, Bond No. 024046230, in the amount of $411,499.00
to the contractor on said job, and authorized the Mayor and City Clerk to execute the
Notice of Completion.
3.29 Award of Contract, Bid No. 134 -23; Hart Park & Stacey Lee Lane Lift Station
Rehabilitation. (A2100.0 Agr -6108)
ACTION: 1) Appropriated $1 16,370.00 from Fund 220 to project Account No.
220.5022.56510.20186; and 2) Awarded the contract in the amount of $236,880.00 to
Tamang Electric, Inc., and authorized the Mayor and City Clerk to execute on behalf of
the City.
PARKING PERMIT
3.30 Approval of "NO FEE" Parking Permits in Municipal Parking Lot No. 2 on S.
Orange St. for the Assistance League of Orange (10 permits), and First United
Methodist Church (2 permits). (S4000.S.3.1.2)
ACTION: Approved the request and authorized issuance of the permits to be valid
from July 1, 2014, through December 31, 2014; and also from January 1, 2015, through
June 30, 2015.
PURCHASES
3.31 Purchase of Police Department Winchester Law Enforcement Ammunition from
Dooley Enterprises, Inc., as a sole source vendor, Fiscal Year 2014 -15, in the
amount of $70,000.00. (C2500.K)
ACTION: Authorized the purchase.
3.32 Purchase of Police Department Uniforms and Accessories from Keystone
Uniforms OC through a Cooperative Purchasing Agreement, Fiscal Year 2014 -15,
in the amount of $90,000.00. (C2500.K)
ACTION: Authorized the purchase.
3.33 Purchase of Firefighter Uniforms and Accessories from Keystone Uniforms OC
through a Cooperative Purchasing Agreement, Fiscal Year 2014 -15, in an amount
not -to- exceed $50,000.00. (C2500.H)
ACTION: Authorized the Fire Department to establish a Blanket Purchase Order with
Keystone Uniforms OC.
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CITY COUNCIL MINUTES
3. CONSENT CALENDAR (Continued)
June 10, 2014
3.34 Purchase of Firefighter Safety Gear from L.N. Curtis & Sons, Fiscal Year 2014-
15, in the amount of $80,000.00. (C2500.H)
ACTION: Authorized the purchase.
3.35 Purchase One Set of Holmatro Hydraulic Rescue Tools from Fire Service
Specification & Supply, a sole- source vendor, for the New "Quint" Fire
Apparatus, in the amount of $41,052.96. (C2500.H)
ACTION: Authorized the purchase.
3.36 Purchase of Replacement Desktop Computers from HP, in an amount not -to-
exceed $135,303.00. (C2500.E)
NOTE: Councilmember Murphy abstained due to a potential conflict with his
employment.
ACTION: Authorized the purchase.
REPORTS
3.37 2013 General Plan Annual Progress Report to the State of California. (C2500.E)
ACTION: Received and filed.
3.38 Time Extension for the Santa Ines Senior Affordable Housing Project Conditional
Use Permit 2790 -10, Major Site Plan 0630 -10, Design Review Committee 4483 -10
and Two Concessions in association with a Density Bonus Housing Agreement
located at 184 North Prospect Avenue. (C3300.0)
ACTION: Approved a one -year time extension.
3.39 Second Extension of HOME Investment Partnerships Funding Commitment for
Santa Ines Senior Villas. (C2500.G.1.9)
ACTION: Authorized the City Manager to execute a letter extending the commitment
of HOME funds for the Santa Ines Senior Villas to July 12, 2015, in the amount of
$928,387.00.
RESOLUTIONS
3.40 RESOLUTION NO. 10787 (C2500.J)
A Resolution of the City Council of the City of Orange Expressing Appreciation to
Richard K. Jacobs and Commending Him for 14 Years of Loyal and Dedicated Service.
ACTION: Approved
3.41 RESOLUTION NO. 10791 (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 Continuous Deflective
Separation (CDS) Unit.
ACTION: Approved
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
3.42 RESOLUTION NO. 10795 (C2500.J.1.0.1)
A Resolution of the City Council of the City of Orange Amending the Master Schedule
of Fees and Charges to Adjust Emergency Medical Services and Ground Ambulance
Transportation Rates.
NOTE: Councilmember Bilodeau registered a "no" vote on this item.
ACTION: Approved
3.43 RESOLUTION NO. 10796 (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 2014 -15.
ACTION: Approved
3.44 Consideration of Resolutions to Conduct the November 4, 2014, General
Municipal Election: (E1100.0)
a) RESOLUTION NO. 10797
A Resolution of the City Council of the City of Orange Calling for the Holding of a
General Municipal Election to be held on Tuesday, November 4, 2014, for the Election
of Certain Officers as Required by the Provisions of the Laws of the State of California
Relating to General Law Cities.
b) RESOLUTION NO. 10798
A Resolution of the City Council of the City of Orange Requesting the Board of
Supervisors of the County of Orange to Consolidate a General Municipal Election to be
held on November 4, 2014, with the Statewide General Election to be Held on the Date
Pursuant to Section 10403 of the Elections Code.
c) RESOLUTION NO. 10799
A Resolution of the City Council of the City of Orange Adopting Regulations for
Candidates for Elective Office pertaining to Candidate's Statements submitted to the
Voters at an Election to be held on Tuesday, November 4, 2014.
d) RESOLUTION NO. 10800
A Resolution of the City Council of the City of Orange Providing for the Conduct of a
Special Runoff Election for Elective Offices in the Event of a Tie Vote at a Municipal
Election.
ACTION: Approved
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CITY COUNCIL MINUTES June 10, 2014
3. CONSENT CALENDAR (Continued)
MOTION - Murphy
SECOND - Alvarez
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Items 3.2, 3.5, and 3.22 were removed and heard separately. Councilmember Murphy
abstained on items 3.5, 3.13, and 3.36 due to a potential conflict with his employment.
Councilmember Bilodeau registered a "no" vote on Item 3.42. All other items were
approved as recommended.
END OF THE CONSENT CALENDAR
* * * * * * * * **
4. REPORTS FROM MAYOR SMITH - None
5. REPORTS FROM COUNCILMEMBERS
Councilmember Bilodeau — Reported that the City had recently received a letter
regarding exchanging the locations of some billboards from residential areas to freeway
areas. He expressed the importance to engage in this discussion to address this issue.
He asked that a report be provided to Council at a future study session.
Mayor pro tem Whitaker suggested that a comprehensive plan be brought back to
Council addressing this issue.
MOTION - Bilodeau
SECOND - Alvarez
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to direct staff to look into preparing a comprehensive billboard management
strategy.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
7. ADMINISTRATIVE REPORTS - None
8. REPORTS FROM CITY MANAGER - None
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CITY COUNCIL MINUTES
9. LEGAL AFFAIRS
June 10, 2014
9.1 ORDINANCE NO. 02 -14 (SECOND READING) (A2500.0 Ord -02 -04 Land Use
Entitlements)
An Ordinance of the City Council of the City of Orange Amending Section 17.08.060 of the
Orange Municipal Code Relating to Extensions to Land Use Entitlements Expiration Dates.
MOTION - Whitaker
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved that Ordinance No. 02 -14 be read by title only and same was approved and adopted by
the preceding vote.
9.2 ORDINANCE NO. 03 -14 (FIRST READING) (A2500.0 Ord -03 -14 Sex Offenders)
An Ordinance of the City Council of the City of Orange Amending Chapter 9.10 of the Orange
Municipal Code Regarding Registered Sex Offenders.
Discussion — City Attorney Wayne Winthers stated that recent court rulings upheld that state
law preempts most local ordinances regulating the daily life of registered sex offenders. He
stated the City has received a letter from an advocacy group alleging the City's ordinance was
in violation of state laws and threatened a lawsuit. He reported that at least six cities in Orange
County have amended their municipal code accordingly. He further explained the changes and
reassured that the state laws regulate the areas that are being stricken from the local laws such
as registration, residency requirements in relation to proximity of schools and parks, etc. He
added that the City's ordinance still retains the regulations on hotel /motel registration, the
number of sex offender parolees simultaneously at a hotel /motel, and the requirement that the
hotel /motel inform other guests of the presence of the sex offender. He stated that the City
Attorney's office is monitoring future actions in the event these restrictions could be put back
into the local ordinance.
Mayor pro tem Whitaker clarified with Mr. Winthers that the court rulings were as a result of
the challenge to the Orange County ordinance on sex offenders. He stated he was not
comfortable with changing the City laws ensuring protection of children. He clarified with Mr.
Winthers the ramifications of not changing the City's regulations. Mr. Winthers indicated that
the City would be open to costly lawsuits and further stated that the changes to the local
ordinance would not adversely affect the Police Department from protecting children.
In response to questions by Councilmember Alvarez, Mr.Winthers detailed the changes to the
safe zones, restrictions based on whether the sex offender was currently on parole or not, and
that offenders must continue to register with the Police Department who aggressively monitor
their location.
Mayor Smith clarified with the City Attorney that if any regulations could be reinstated into
the local law, he would immediately return to Council with them.
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CITY COUNCIL MINUTES June 10, 2014
9. LEGAL AFFAIRS (Continued)
MOTION - Smith
SECOND -
AYES -
Moved to approve the first reading of Ordinance No. 03 -14.
MOTION DIED DUE TO A LACK OF A SECOND.
Mayor Smith stated that she supported the ordinance amendment not to show any sympathy for
the sex offenders, but rather to protect the City from possible future costly litigation.
Councilmember Alvarez stated he opposed the amendment on a moral basis.
10. ITEMS RELATING TO THE SUCCESSOR AGENCY OF THE ORANGE
REDEVELOPMENT AGENCY
10.1 ISSUANCE OF TAX ALLOCATION REFUNDING BONDS BY THE
SUCCESSOR AGENCY. (SA1000.0 Agr- 6111 -6114 & 6117)
RESOLUTION NO. SAORA -014
A Resolution of the City Council of the City of Orange, Acting as the Legislative Body of the
Successor Agency to the Orange Redevelopment Agency, Approving the Successor Agency's
Issuance of Tax Allocation Refunding Bonds and Authorizing Certain Related Actions.
Discussion — Finance Director Rich Jacobs gave a staff report.
MOTION - Whitaker
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to:
1) Adopt Resolution No. SAORA -014, and thereby:
a) Approve the issuance of the 2014 Bonds, in an aggregate principal amount, not to
exceed $36 million;
b) Approve the execution and delivery of a Fourth Supplement to Indenture of Trust, in
connection with the issuance of the 2014 Bonds;
c) Request the Oversight Board to approve the issuance of the 2014 Bonds, and in that
connection, direct the City Clerk to transmit a copy of the Resolution to the Oversight
Board;
d) Authorize the City Manager and the Finance Director to negotiate the terms of a bond
purchase agreement with the Underwriter (with the bond purchase agreement to be brought
back to the City Council for approval by later resolution);
e) Approve the appointment of Financial Advisor, Bond Counsel, Disclosure Counsel, and
Fiscal Consultant pursuant to the agreements; and
2) Authorize the Executive Director to execute all necessary documents related to the
engagement of the Financial Advisor, Bond Counsel, Disclosure Counsel, and Fiscal
Consultant.
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CITY COUNCIL MINUTES
11. PUBLIC HEARINGS
June 10, 2014
11.1 PROPOSED FISCAL YEAR 2014 -15 (FY 15) CITY OF ORANGE BUDGET
AND SEVEN YEAR CAPITAL IMPROVEMENT PROGRAM INCLUDING
APPROVAL OF SALARY ADJUSTMENTS, POSITION RECLASSIFICATIONS, AND
OTHER PERSONNEL ACTIONS. (C2500.J.1.1)
Time set for a public hearing to consider the Proposed Fiscal Year 2014 -15 (FY 15) City of
Orange Operating Budget.
Discussion — Assistant City Manager, Rick Otto gave a staff report for a balanced budget. This
is the third year in a row the City has produced a balanced budget. General Fund revenues are
estimated at 96.2 million dollars and General Fund expenditures are estimated at 96.0 million
dollars. All funds were explained with total dollars in each fund.
Mayor pro tern Whitaker asked for clarification on what budget numbers changed from the
April Study Session figures and the current proposed budget. His questions also addressed
succession planning and the third Captain position in the Police Department and the AL- BLS
fees. He further asked about funding for the internal service funds that support streets, sewers,
water lines etc. Mr. Otto explained that the fund holding the ALS -BLS fees was upside down
and the new monies only make the fund balance. He further explained that the increase in
personnel costs has to do with previously negotiated adjustments.
Mayor Smith also asked about the third captain position in the Police Department. She
suggested funding is available within the budget and the public safety of the City requires it.
She insisted on assurances that the third captain would be added to this budget.
Councilmember Alvarez shared the Mayor's concerns regarding the third captain position,
wanting to see the position re- filled.
Councilmember Murphy asked to confirm that the dollar figure for transfers -out was the same
as the figures given in the Budget study session. Staff responded that an additional $500,000
was added. He also stated his support for adding the third captain position.
Mayor pro tern Whitaker wanted to insure that operational revenue are used to pay for the
operational costs related to the third captain position, and that other funding should not be used
for any operational costs.
City Manager Sibley responded that staff understands the Council's direction on adding the
third captain position to the Police Department, suggesting it could be added at mid -year,
which would give staff six months to advertise and hire for the position.
Councilmember Alvarez suggested setting a deadline of January 15, 2015 for adding the
position.
Councilmember Bilodeau stated his support for the third captain position. He then inquired
about the budgeting for new medians within the City. Mr. Otto explained that the dollars
allocated are seed money to get the project started. Councilmember Bilodeau asked about the
dollars saved for the future PERS increases and the possibility of paying down the city's
unfunded liability.
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CITY COUNCIL MINUTES June 10, 2014
11. PUBLIC HEARINGS (Continued)
Finance Director Rich Jacobs explained this year the City will be prepaying the PERS costs by
prepaying the entire year at once instead of paying a little at a time each pay period, creating a
savings of $600,000 to the City.
Mayor pro tem Whitaker expressed concern that PERS would not be able to hit their promised
returns and that prepaying could be risky because the unfunded liability changes based on
returns. He suggested his preference to keep the money in Orange and pay PERS when it is
required.
Councilmember Bilodeau stated that PERS has hit their rates of return historically, and with
money only earning I% it would make sense to prepay PERS.
1) RESOLUTION NO. 10793
A Resolution of the City Council of the City of Orange Adopting said City's Budget for the
Fiscal Year 2014 -15 and Relating to Transfers of Funds between and within Appropriations,
Transfers between Funds, and additional Appropriations.
MOTION - Murphy
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve Resolution No. 10793 with the addition of funding for a third captain
position for the Police Department by the January 13, 2015 City Council meeting.
2) RESOLUTION NO. 10794
A Resolution of the City Council of the City of Orange Adopting the Appropriations Limit of
$149,458,738.00 for the Fiscal Year 2014 -15.
MOTION - Murphy
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve Resolution No. 10794.
3) Find that the portion of the Fiscal Year 2014 -15 Budget subject to the Gann limit is
$83,520,502, and therefore within the limit.
MOTION - Murphy
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve the budget subject to the Gann limit is $83,520,502, and therefore within the
limit.
FY 2013 -14:
4) Approve a budget transfer of $1,400,000 from Account No. 100.0000.57120.19700,
General Fund - Transfer /Gas Tax Exchange to 273.0000.49010.00000, Gas Tax - Transfer from
Other Funds to offset street maintenance expenses incurred in the Gas Tax Fund (273).
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CITY COUNCIL MINUTES June 10, 2014
11. PUBLIC HEARINGS (Continued)
MOTION - Murphy
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve the budget transfer.
11.2 SOUTHERN COUNTIES OIL COMPANY (SC FUELS) PARTICIPATION
AGREEMENT (A2100.0 Agr -6110)
Time set for a public hearing to consider approval of a Participation Agreement by and among
the City of Orange, Southern Counties Oil Co., a California Limited Partnership, and Orange
Katella, LLC, a California Limited Liability Company for sales tax sharing.
NOTE: Mayor pro tem Whitaker recused himself due to a possible conflict with his
employment.
Discussion — Economic Development Manager Lisa Kim provided a staff report stating that SC
Fuels is the largest taxpayer in the City and generates 150 jobs.
Mayor Smith stated her pleasure in keeping SC Fuels, a homegrown business, in Orange and
commended Councilmember Murphy for his part in working with the company.
Councilmember Murphy noted that the company came to Orange in 1988 and has remained a
wonderful partner with the City.
Councilmember Alvarez stated the company is the largest revenue generator in Orange. He
also commended Ms. Kim for negotiating the agreement.
MOTION - Murphy
SECOND - Smith
AYES - Alvarez, Smith, Murphy, Bilodeau
ABSENT (RECUSED) — Whitaker
Moved to approve the Participation Agreement by and among the City, Southern Counties Oil
Co., a California Limited Partnership, and Orange Katella, LLC, a California Limited Liability
Company and authorize the Mayor and City Clerk to execute on behalf of the City.
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CITY COUNCIL MINUTES
11. PUBLIC HEARINGS (Continued)
June 10, 2014
11.3 RIO SANTIAGO RESIDENTIAL DEVELOPMENT (A4000.0 App- 0533 -14)
Appeal No. 0533 -14 - Environmental Impact Report 1818 -09, General Plan Amendment
2009 -002, Zone Change 1254 -09, Specific Plan 001 -09, Tentative Parcel Map 2012 -101,
Tentative Tract Map 0025 -09 (Also Known as Tentative Tract Map 17344), Development
Agreement 5825, Major Site Plan 0595 -09, and Design Review Committee 4413 -09.
Appellant: JMI Properties /Santiago Partners, LLC. (Continued from May 13, 2014)
Time set for a continued public hearing to consider the Planning Commission's Denial of a
project that would allow a maximum of 130 single family homes; a maximum of 265 senior
(age- restricted) housing units that could include up to a three -story building; pay- for -use
private recreational facilities which could include up to an 81,000 square foot building; and
open space areas north of and including Santiago Creek. Publicly available trails, publicly
available open space, and private streets are also proposed as part of the project.
THE MAYOR RE- OPENED THE PUBLIC HEARING
Public Speakers - The following spoke in favor of project and asked to overturn the Planning
Commission Denial: Chuck Connor, Lynn Canton, Christie Cormack,
The following spoke against the project and asked that the Planning Commission Denial be
upheld: Sherry Meddick, Barbara Weiner, George McFarland, Sue Phillip, Jim Phillip, Marius
VanDerWatt, Emily Bradley, Nick Lall, David Hillman, Ken Kribel, Katrina Kirkeby,
Carolyn Aliotta, Jon Schrank, Scott Breeden, Deborah Pauly, Mark Sandford, Bob Myers, Ann
Myers, Ellen Richards, Kathy Ashford, Debbie Kiepfer, Laura Thomas, Victoria Coonradt,
Deborah Redflyn, Debbie Mongan, Sandra Clark, Christine Rosenow, David Piper, Jason
Phlam
Applicant Ken Ryan spoke in rebuttal and asked the City Council to approve the appeal of the
Planning Commission denial.
Discussion: Mayor Smith asked the applicant about methane monitors from the adjacent
property. Applicant, Ken Ryan responded that the County monitors the methane, with probes
along the property line. Mayor Smith asked if the applicant has anything in writing for who
will manage the creek area on the property. The applicant responded that nothing exists in
writing but there have been discussions. Mayor Smith then confirmed with the applicant that
the project would result in a traffic signal every nine hundred feet along the property.
Mayor pro tem Whitaker asked about alternatives to the project which were not considered.
The applicant responded that there is a need for senior housing in this area, and that with
changes in the real estate market, this project makes sense.
Councilmember Bilodeau asked about the traffic signal increases which are due to the
recreation aspects on the project. He asked about funding for the completion of the creek trail,
as he was not comfortable that the funding is enough to complete the trail project.
Councilmember Bilodeau also inquired about why alternatives were not considered as the high
density does not fit in the area; and that more clarity is needed on the open space issue.
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CITY COUNCIL MINUTES June 10, 2014
11. PUBLIC HEARINGS (Continued)
Councilmember Murphy asked if there was a back -up plan for finding a group to manage the
open space trail area.
Councilmember Alvarez suggested the applicant did not make adequate adjustments to the
plans to mitigate the local residents' concerns.
THE MAYOR CLOSED THE PUBLIC HEARING
Mayor pro tem Whitaker and Councilmember Murphy said they would be uncomfortable with
upholding the appeal and re- designing the project on the dais.
City Attorney Winthers explained that the Council should either uphold the appeal or deny the
appeal of the Planning Commission decision to deny the project.
Councilmember Murphy spoke in support of denying the appeal, as it was not a good site for
senior housing, there is not an absolute plan on the creek, the project should be more in tune
with the surrounding neighborhood, and did not like the proposed commercial recreation. He
also asked about the need to recertify and reissue the environmental documents if there were
significant changes to the project.
Councilmember Bilodeau suggested a possible continuance to see other alternatives further
evaluated; that lower density residential would be more appropriate for the area; and that more
work needs to be done on this proposal.
Mayor pro tem Whitaker suggested he would like to have seen lower density which mirrored
the surrounding neighborhood, and no commercial recreation area; and suggested a possible
continuance for further study.
Councilmember Alvarez spoke in support of denying the appeal as the Planning Commission
concerns were not mitigated and the project needs to be pared down.
Mayor Smith spoke in support of denying the appeal, stating her concerns about the open
space and who would assume responsibility; more work being needed on the creek; flood
plain issues; methane gas issues.
MOTION - Smith
SECOND - Alvarez
AYES - Alvarez, Smith, Murphy
NOES - Whitaker, Bilodeau
Moved to deny Appeal 0533 -14 and uphold the Planning Commission denial of the subject
application.
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CITY COUNCIL MINUTES
11. PUBLIC HEARINGS (Continued)
June 10, 2014
11.4 LANDSCAPE MAINTENANCE DISTRICT 86 -2 (SANTIAGO HILLS) (L1200.0
LMD 86 -2 Santiago Hills)
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).
Discussion — Public Works Director Joe DeFrancesco provided a staff report stating that there
is no change to the existing rates.
In response to Mayor Smith's question on the reduced level of services, Community Services
Director Marie Knight explained there have been cut backs on fertilization, trimming
schedules, watering, plant replacement, etc. She indicated that with the drought, more water
has been required, adding that since 2007 the water rates have been increased 31 %. She also
stated that a consultant will be asked to look at what future assessments should be, outreach to
the community, and then a vote of the association would be required to increase the assessment
in the future.
THE MAYOR OPENED THE PUBLIC HEARING.
THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING.
MOTION - Bilodeau
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve:
1) RESOLUTION NO. 10788
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); and
2) Establish the Assessment for Fiscal Year 2014 -15 for Landscape Maintenance Assessment
District 86 -2 at $369.44 per single family unit per year.
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CITY COUNCIL MINUTES June 10, 2014
11. PUBLIC HEARINGS (Continued)
11.5 LANDSCAPE MAINTENANCE DISTRICT 94 -1 (SYCAMORE CROSSING)
(L1200.0 LMD 94 -1 Sycamore Crossing)
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.
Discussion — Public Works Director Joe DeFrancesco provided a staff report stating that there
is no change to the existing rates.
THE MAYOR OPENED THE PUBLIC HEARING.
Speaker — Rich Robertson thanked the Council for their work with the residents on this issue.
THE MAYOR CLOSED THE PUBLIC HEARING.
MOTION - Murphy
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve:
1) RESOLUTION NO. 10789
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); and
2) Establish the Assessment for Fiscal Year 2014 -15 for Landscape Maintenance Assessment
District 94 -1 at $293.08 per single family unit per year.
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CITY COUNCIL MINUTES June 10, 2014
11. PUBLIC HEARINGS (Continued)
11.6 SOLID WASTE RATE ADJUSTMENT (C2500.M.1)
Time set for a public hearing to consider a request from the City's Solid Waste Collector,
CR &R for a Rate Adjustment, Effective July 1, 2014.
Public Works Administrative Manager Greg Warren provided the staff report stating that the
waste collector applied for the rate adjustment according to the agreement provisions and the
new rates are still within the lowest third in Orange County.
THE MAYOR OPENED THE PUBLIC HEARING.
THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING.
MOTION - Whitaker
SECOND - Alvarez
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve:
RESOLUTION NO. 10781
A Resolution of the City Council of the City of Orange Approving Revised Rates for Solid
Waste Collection and Disposal Services.
12. ADJOURNMENT — The City Council adjourned at 11:55 p.m. in memory of Jess
Fuentes Perez a longtime Councilmember and former Mayor of the City of Orange.
The next Regular City Council Meeting will be held on Tuesday July 8, 2014, at 6:00 p.m. in
the Council Chambers, with Closed Session beginning at 5:00 p.m., if necessary.
Declaration of Chief Clerk, Robert Zornado, declaring posting of City Council agenda of a
regular meeting of June 10, 2014, 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; and available at the Civic Center City Clerk's Office.
MAR URPHY
TY ERK
TERESA t. S ITH
MAYOR
Page 22