Council Minutes 05/14/13APPROVED BY THE CITY COUNCIL ON MAY 28, 2013
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
May 14, 2013
The City Council of the City of Orange, California convened on May 14, 2013 at 4:30 p.m. in a
Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Given by Pastor Larry DiSimone, Calvary Chapel of the Canyons
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Bradon Walkenhorst, Boy Scout Troop 942.
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Recognition of Sponsors for the Orange 125 Birthday Celebration
Presentation of Proclamation Recognizing Red Shirt Fridays
Presentation of Proclamation Recognizing National Public Works Week, May 19 -25, 2013
2. PUBLIC COMMENTS
Tia Christian - Announced that the Fair Housing Council wants to serve the City of
Orange and invited the City Council to attend their Board meeting.
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3. CONSENT CALENDAR
May 14, 2013
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.
3A. CITY CONSENT CALENDAR
3.1 Confirmation of warrant registers dated April 18 and April 25, 2013.
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of April 23, 2013. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 City Treasurer's Report for the Months of January, February, and March, 2013.
(C2500.F)
ACTION: Received and filed.
3.5 Investment Oversight Committee Report, period ending April 30, 2013.
(OR1800.0.27.16)
ACTION: Received and filed.
AGREEMENTS
3.6 Agreement with Nichols Consulting Engineers for Pavement Condition Survey
and Update, in the amount of $108,000.00. (A2100.0 Agr -5990)
ACTION: Awarded the contract and authorized the Mayor and City Clerk to execute
on behalf of the City.
3.7 Amendment to Agreement with United Security Access & Electric for Installation
of an Access Control System to Park Restroom Buildings at El Camino Real Park,
in the amount of $9,000.00. (A2100.0 Agr - 5841.1)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
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3. CONSENT CALENDAR (Continued)
3.8 Agreement with Friendly Center for use of Killefer Park to provide Community,
Recreation, Social, and Health Resources to the Community.
(A2100.0 Agr- 0867.E)
ACTION: Approved the agreement and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.9 Agreement with Integrity Automated Solutions, Inc. for Installation of a Delta
HVAC Central Control System and Duct Work Upgrades at the Grijalva Sports
Center, in the amount of $29,578.00. (A2100.0 Agr -5991)
ACTION: Approved the agreement and authorized the Mayor and City Clerk to
execute on behalf of the City.
(REMOVED AND HEARD SEPERATELY)
3.10 Agreement between Chapman University and the City of Orange to provide
payment of replacement income. (A2100.0 Agr -5997)
Discussion — Mayor Smith asked the City Manager for further detail on the agreement.
City Manager John Sibley explained Chapman University is looking at purchasing the
Quality Suites in West Orange for student housing. Because the city would lose any
future transient occupancy tax from the hotel, the city has negotiated an agreement with
Chapman for $500,000 annually, for as long as the facility is used for housing, but no
less than ten years. This includes a $5,000 annual fee to cover city costs of film permit
processing for Chapman students. All funds collected will go to the General Fund.
The Council thanked Chapman University for the agreement and their partnership with
the city.
MOTION - Alvarez
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve the agreement and authorize the City Manager to execute the
agreement with Chapman University.
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3. CONSENT CALENDAR (Continued)
3.11 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. CSE Safeguard Insurance Company/Veronica Negrete
b. Mercury Insurance Group as Subrogee of Claudia Negrete
C. Veronica Negrete
d. Veronica Negrete and Claudia Negrete
e. 21 Century Insurance Company as Subrogee of Veronica Negrete
f. 21 Century Insurance Company as Subrogee of Veronica Negrete
g. Kara Zantos
h. Janice Kuhn
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.12 Award of Contract - Bid No. 123 -20; (Proposition 1B) State -Local Partnership
Program (SLPP); Jamboree Road Rehabilitation Project. (A2100.0 Agr -5992)
ACTION: 1) Awarded the contract in the amount of $1,559,443.59 to R.J. Noble
Company, and authorized the Mayor and City Clerk to execute on behalf of the City;
and 2) Approve Change Order No. I in the amount of $326,000.00.
3.13 Final Acceptance of Bid No. 123 -21; Annual Concrete Replacement at Various
Locations, FY- 2012 -13 performed by Kalban, Inc.; and authorization to file the
Notice of Completion with the County Recorder. (No staff report required
(A2100.0 Agr -5970)
ACTION: Accepted public work improvements, authorized release of the Guarantee
Company of North America USA of Michigan, Bond No. 12089331 in the amount of
$404,000.00 to the contractor on said job, and authorized the Mayor and City Clerk to
execute the Notice of Completion.
3.14 Award of Contract - Bid No. 123 -28; Sewer Line Replacement at Various
Locations Project, FY 2012 -13. (A2100.0 Agr -5993)
ACTION: Awarded the contract in the amount of $742,000.00 to SND Construction, Inc.
and authorized the Mayor and City Clerk to execute on behalf of the City.
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3. CONSENT CALENDAR (Continued)
3.15 Award of Contract - Bid No. 123 -32; Community Development Block Grant
(CDBG) Project — Americans with Disabilities Act (ADA) Wheelchair Access
Ramps at Various Locations, Fiscal Year 2012 -13. (A2100.0 Agr -5994)
ACTION: 1) Rejected Rakan, Inc.'s bid; and 2) Awarded the contract in the amount of
$68,333.00 to Mora's Equipment and Construction, Inc., and authorized the Mayor and
City Clerk to execute on behalf of the City.
3.16 Award of Contract - Bid No. 123 -33; Emergency Power Generator for Fire Station
No. 4. to TSR Construction and Inspections, in the amount of $87,400.00.
(A2100.0 Agr -5995)
ACTION: Awarded the contract and authorize the Mayor and City Clerk to execute on
behalf of the City.
RESOLUTIONS
(REMOVED AND HEARD SEPERATELY)
3.17 RESOLUTION NO. 10711 (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 2013 -14.
Discussion — Councilmember Alvarez asked for clarification on the credit ratings being
changed. Finance Director Rich Jacobs explained that the change was to reflect that the
AAA rating language be lifted, and that any downgrade would generate a review to
determine whether the City should retain a specific fund.
Councilmember Whitaker mentioned that a year ago the City Council discussed this
policy to include a review of any fund that has its credit rating downgraded.
MOTION - Alvarez
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve.
3.18 RESOLUTION NO. 10712 (P2500.0.1)
A Resolution of the City Council of the City of Orange finding that certain City -Owned
Real Property Located at 1314 North Cannon Street in the City of Orange is Surplus to
the City's needs and Authorizing the Sale of Said Property.
ACTION: Approved.
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3. CONSENT CALENDAR (Continued)
(REMOVED AND HEARD SEPERATELY)
3.19 RESOLUTION NO. 10716 (C2500.J.4.2.1)
A Resolution of the City Council of the City of Orange Resolving a Failure By
Representatives of the City and the Orange Police Management Association to Agree
Upon the Terms and Conditions for a Fiscal Year 2012 -2013 Memorandum of
Understanding Between Representatives of the City and the Orange Police
Management Association.
Discussion — Councilmember Alvarez and Mayor Smith both indicated they thought
the two sides are very close to an agreement and a continuation might be best.
Councilmembers Whitaker and Bilodeau suggested the Council stay the course and
continue with action on the item.
Mayor pro tern Murphy asked if any new proposals had come in. City Manager John
Sibley explained that a new proposal had been received which exceeded any previous
proposals.
Upon questioning by Council, Special Counsel Jeff Freedman indicated this
information could be discussed in Closed Session.
MOTION - Murphy
SECOND - Alvarez
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved the consideration of the item to the end of the agenda after Closed Session.
NOTE: The City Council re- convened at 7:40 p.m. after the Closed Session.
MOTION - Whitaker
SECOND - Bilodeau
AYES - Whitaker, Murphy, Bilodeau
NOES - Alvarez, Smith
Moved to Approve and authorize staff to make the necessary budget adjustments and/or
appropriations to the departments' salary and benefit accounts to fund any increased
costs.
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3. CONSENT CALENDAR (Continued)
3B. SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY
3.20 Final Acceptance of Bid No. 123 -14; Slurry Seal at Various Successor Agency
Owned Parking Lots project performed by Pavement Coatings Company; and
authorization to file Notice of Completion with County Recorder. (No staff report
required. (A2100.0 Agr -5931)
ACTION: Accepted public work improvements, authorized release of The Ohio
Casualty Insurance Company of New Hampshire Labor and Material Bond, Bond No.
6718313 in the amount of $140,637.00 to the contractor on said job, and authorized the
Successor Agency Chairperson and Successor Agency Clerk to execute the Notice of
Completion.
MOTION - Bilodeau
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Item 3.10 and Item 3.17 were pulled and heard separately. Item 3.19 was moved and
voted on after the Closed Session. All other items were approved as recommended.
END OF CONSENT CALENDAR
* * * * * * * * **
4. REPORTS FROM MAYOR SMITH - None
5. REPORTS FROM COUNCILMEMBERS - None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
6.1 Appointment of Mr. Daniel Correa to the Planning Commission.
Discussion — Councilmember Alvarez spoke about Mr. Correa's qualifications.
MOTION - Alvarez
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to approve the appointment of Daniel Correa to the Planning Commission.
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7. ADMINISTRATIVE REPORTS
May 14, 2013
7.1 A Participation Agreement between SFV Diversified Inc. and the City of Orange
which will provide for the incremental sharing of sales tax revenue over a term of twenty
years under the City's Sales Tax Sharing Program. (A2100.0 Agr -5996)
NOTE: Mayor pro tem Murphy and Councilmember Whitaker recused themselves due to
potential conflicts with employment.
MOTION -Smith
SECOND - Bilodeau
AYES - Alvarez, Smith, Bilodeau
ABSTAIN - Whitaker, Murphy
Moved to hear this item at the end of the agenda.
Discussion — Assistant City Manager Rick Otto gave the staff report, indicating this agreement
will be with a new Volkswagen dealership on West Katella.
Councilmember Bilodeau thanked staff for a well crafted agreement that brings a new business
to Orange.
Mayor Smith clarified that the City will receive tax money from the state prior to sending out
payments to the business on a quarterly basis.
Councilmember Alvarez clarified that the agreement is performance based and clarified that
the agreement is for twenty years.
Mr. Otto responded that the business will only get paid if the thresholds are met and the City
receives their money from the State.
Speaker — Applicant Greg Brown thanked the City and staff for the agreement.
MOTION -Smith
SECOND - Bilodeau
AYES - Alvarez, Smith, Bilodeau
ABSENT (RECUSED) - Murphy, Whitaker
Moved to: 1) Approve the Participation Agreement with SFV Diversified Inc.; and 2)
Authorize the Mayor to execute and the City Clerk to attest to the Participation Agreement
with SFV Diversified Inc.
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S. REPORTS FROM CITY MANAGER - None
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 03-13 (SECOND READING) (Z1500.0)
An Ordinance of the City Council of the City of Orange Approving Zone Change 1269 -13,
Rezoning Properties in the Lemon Street Corridor 2010 General Plan Land Use Focus Area to
Residential Multiple Family (R -3), Light Manufacturing (M1), and Industrial Manufacturing
(M2) to Establish Consistency between the Medium Density Residential, Light Industrial, and
Industrial General Plan Land Use Designations and Zoning Classification in Accordance with
State Law.
NOTE: Councilmember Whitaker recused himself due to a potential conflict with his
employment.
MOTION - Murphy
SECOND - Smith
AYES - Alvarez, Smith, Murphy, Bilodeau
ABSENT (RECUSED) - Whitaker
Moved that Ordinance No. 03 -13 be read by title only and same was approved and adopted by
the preceding vote.
9.2 ORDINANCE NO. 04-13 (SECOND READING) (A2500.0)
An Ordinance of the City Council of the City of Orange adding Chapter 3.25 to Title 3 of the
Orange Municipal Code Relating to the Establishment of a Sales Tax Sharing Program.
MOTION - Smith
SECOND - Bilodeau
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved that Ordinance No. 04 -13 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.
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11. PUBLIC HEARINGS
May 14, 2013
11.1 STREAMLINING THE REVIEW OF CERTAIN DEVELOPMENT AND USE
APPLICATIONS. (A2500.0)
Time set for a public hearing to consider Ordinance No. 5 -13 to Streamline City Review of
Certain Types of Development and Use Applications Related to Home Occupations, Recurring
Temporary Uses, Zoning Administrator Variances for Legal Non - Conforming Setbacks,
Access and Garage Dimensions, and Wireless Communication Facilities.
Discussion — Principal Planner Anna Pehoushek gave the staff report.
Mayor Smith clarified with staff the following:
• In a residential zone that has a public use like a park or a school, a CUP could be issued
to allow a new wireless facility;
• Revenues from wireless facilities would belong to the owner of the facility;
• Staff will save time and money in processing these type of requests using the new
streamlined procedures; and
• The CUP process will require a public noticing procedure.
Councilmember Whitaker reminded the Council that staff is following Council's direction to
streamline the process.
ORDINANCE NO. 05-13 (FIRST READING)
An Ordinance of the City Council of the City of Orange Amending Title 17 of the Orange
Municipal Code to Streamline City Review of Certain Development Applications and Types of
Uses Related to Home Occupations, Recurring Temporary Uses, Zoning Administrator
Variances, Legal Non - Conforming Garage Dimensions, and Wireless Communication
Facilities.
MOTION
- Murphy
SECOND
- Whitaker
AYES
- Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to find the Ordinance categorically exempt from the provisions of the California
Environmental Quality Act (CEQA) per State CEQA Guidelines section 15305; and that
Ordinance No. 05 -13 be read by title only and same was set for second reading by the
preceding vote.
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12. RECESS TO CLOSED SESSION
The City Council recessed at 5:58 p.m. to a Closed Session for the following purposes:
a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:
City Negotiators: Jeffrey Freedman, Special Counsel, Rick Otto, Assistant City
Manager, Steven Pham, Human Resources /Employee Relations Director, and Mike
Harary, Assistant Human Resources Director.
Employee Organizations: All Bargaining Units except Orange City Firefighters.
b. Conference with Legal Counsel - Existing Litigation pursuant to Government Code
Section 54956.9(a): Vasquez v. Rackauckas, et. al.
USDC Case No. SACV09 -1090 VBF (RNBx)
C. Conference with Legal Counsel — Potential Litigation — Significant exposure to litigation
pursuant to Government Code Section 54956.9(b).
1) One potential case.
d. Public Employee Performance Evaluation pursuant to Government Code Section 54957.
Title: City Manager.
e. To consider and take possible action upon such other matters as are orally announced by
the City Attorney, City Manager, or City Council prior to such recess unless the motion to
recess indicates any of the matters will not be considered in Closed Session.
13. ADJOURNMENT — There was no 7:00 p.m. Session.
The City Council recessed at 7:45 p.m. to an Adjourned Regular Meeting Study Session in the
Weimer Room at City Hall to review the proposed FY 2013 -14 Budget and Capital
Improvement Plan; and recessed back to Closed Session at 8:45 p.m. The City Council
adjourned the Regular Meeting (Closed Session) at 9:40 p.m.
The Next Regular City Council meeting will be held on Tuesday, May 28, 2013 at 4:30 p.m. in
the Council Chambers.
Declaration of Chief City Clerk, Robert Zornado, declaring posting of City Council agenda of a
regular meeting of May 14, 2013 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 meetin and available at the Civic Center City Clerk's Office.
J
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TERESA E. SMITH
MAYOR
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