Council Minutes 03/26/13APPROVED BY THE CITY COUNCIL ON APRIL 23, 2013
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
March 26, 2013
The City Council of the City of Orange, California convened on March 26, 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 Reverend Chineta Goodjoin, New Hope Presbyterian Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor pro tem Mark A. Murphy
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Recognition of 2012 Community Partners
Presentation of Proclamation Honoring Police Sergeant David Vullo
Recognition of Employee Service
2. PUBLIC COMMENTS - None
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CITY COUNCIL MINUTES
3. CONSENT CALENDAR
March 26, 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.
3.1 Confirmation of warrant registers dated February 28, March 7, and 14, 2013.
ACTION: Approved.
(REMOVED AND HEARD SEPARATELY)
3.2 City Council Minutes, Regular Meeting of March 12, 2013 and Adjourned
Regular Meeting of March 12, 2013. (C2500.D.4)
Discussion — Mayor Smith stated that she had additional language she wanted added to
the minutes of the Regular Meeting of March 12, 2013.
MOTION - Smith
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to continue the minutes of the Regular Meeting of March 12, 2013 to April 23,
2013, to amend the language; and approve the Adjourned Regular Meeting Minutes of
March 12, 2013.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Investment Oversight Committee Report, period ending February 28, 2013.
(OR1800.0.27.16)
ACTION: Received and filed.
AGREEMENTS
3.5 Second Amendment to Agreement with Tetra Tech, Inc. for Additional
Engineering Services for the Design of Well 27, in the amount of $42,000.00.
(A2100.0 Agr- 3515.2)
ACTION: Approved the amendment and authorized the Mayor and City Clerk to
execute on behalf of the City.
3.6 First Amendment to Agreement with GKK Works, Inc. for Maintenance
Management Services at the Del Rio Community Facilities District and Santiago
Hills Landscape Assessment District, in an amount not -to- exceed $42,600.00.
(A2100.0 Agr - 5906.1)
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
3. CONSENT CALENDAR (Continued)
March 26, 2013
3.7 Agreement with Bithell, Inc. for Installation of Anti - Graffiti Coating on Park
Structures, in the amount of $117,000.00. (A2100.0 Agr -5979)
ACTION: Approved the agreement and authorized Mayor and City Clerk to execute
on behalf of the City.
3.8 First Amendment to Agreement with Lilley Planning Group for Current Planning
Services including Discretionary Case Processing, in the amount of $20,000.00.
(A2100.0 Agr - 5892.1)
ACTION: Appropriated $20,000.00 from Account No. 100.6021.48210.20096
(Expense Reimbursement) to Account No. 100.6021.51670.20096 (Other Professional
& Consulting Services — Lilley Planning Group) and authorized the Mayor and City
Clerk to execute on behalf of the City.
3.9 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. Karen Andrews
b. Roy Arredondo
C. Patrick D. McNeal
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.10 Award of Contract — Bid No. 123 -24; Annual Pavement Maintenance at Various
Locations, Fiscal Year 2012 -13 to R. J. Noble Company, in the amount of
$2,842,495.00. (A2100.0 Agr -5980)
ACTION: Awarded the contract and authorized the Mayor and City Clerk to execute
on behalf of the City.
GRANTS
3.11 Addendum to 2010 Urban Area Security Initiative (UASI) Grant — Santa Ana /
Anaheim Urban Area Training Allocations. (A2100.0 Agr- 5375.A)
ACTION: Appropriated an additional $12,000.00 to the original allocation of
$35,000.00 from the General Fund revenue Account No. 100.3023.45495.20101 to
Account No. 100.3023.51840.20101 (Fire — Fire Training — 2010 UASI TLO Training).
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CITY COUNCIL MINUTES March 26, 2013
3. CONSENT CALENDAR (Continued)
PURCHASES
3.12 Proposition 69, DNA, Fingerprint, Unsolved Crime, and Innocence Protection Act,
Funding for the Purchase and Installation of Evidence Lockers for the Property
Deposit Room 07, and the Bulk Property Room 08, in the Police Department's
Property Unit. The Total Funding from the County of Orange is $76,859.00.
(C2500.K)
ACTION: 1) Appropriated $71,050.00 from Account No. 100.4034.45495.20209 to
Account No. 100.4034.55131.20209 (Lab /Property- Equipment -2012 Prop 69 DNA
Initiative); and 2) Appropriated $1,607.00 from Unreserved Federal Asset Forfeiture
Fund to Account No. 355.4034.55131.20209 (Federal Asset Forfeiture- Lab /Property-
Equipment -2012 Prop 69 DNA Initiative) for the purchase of equipment for the
Property unit from McMurray -Stern as a sole source vendor.
REPORTS
(REMOVED AND HEARD SEPARATELY)
3.13 Audited Financial Statements and Related Financial Reports for the Fiscal Year
ended June 30, 2012. (C2500.J.1.3)
Discussion — Councilmember Whitaker asked for a verbal report from the Finance
Director on the audit letter, material weaknesses in several of the fund balances, and the
reporting of the unfunded pension liability.
Finance Director Rich Jacobs provided an overview of the FY 2011 -12 statements and
reports, stating that the City adjusted journal entries identified by the auditor, will file
CDBG quarterly reports at the end of this month, and acknowledged the need for a
future journal entry on unrealized gains and losses of funds held by the City's trustee.
He further addressed questions on HUD funds, reporting on assets, and PERS liability
issues. He added that the City has taken measures to address the pension liability issue
including reduced staffing, the furlough program, and requiring employees to pay more
on the PERS benefit, as well as implementing lower employee benefit rates and
policies.
Council further clarified with Mr. Jacobs that the City has responded to the external
auditor's findings, and an accountant will be assigned to track and monitor federal
grants, and follow up with the departments responsible for filing the reports.
Councilmember Whitaker stated his desire to keep these issues high on the City's radar.
MOTION - Whitaker
SECOND - Smith
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to receive and file.
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CITY COUNCIL MINUTES March 26, 2013
3. CONSENT CALENDAR (Continued)
RESOLUTIONS
3.14 RESOLUTION NO. 10695 (C2500.J.4.6)
A Resolution of the City Council of the City of Orange Amending Resolution No.
10589 Relating to the Classification, Compensation, and Terms of Employment of
Executive Directors and Top Management Employees for the period July 1, 2012
through June 30, 2013.
ACTION: Approved.
SPECIAL EVENTS
3.15 Consideration of Approval of two Special Event Permits: (P1300.0.9)
1) Motorsports Industries to host their annual Z -Car Exhibition Car Show and to
authorize the closure of Collins Avenue from Batavia to Main; and
2) Orange Blossoms, an Auxiliary of Assistance League of Orange, California, Inc.,
to hold their annual "Taste of Orange" and to authorize the sale, and permit the
purchase, possession, and consumption of alcoholic beverages on a portion of the
South Orange Street public parking lot during this event.
ACTION: 1) Approved the Special Event Permit with Motorsports Industries to host
their Annual Z -Car Exhibition Car Show on April 28, 2013, and authorized the closure
of Collins Avenue from Batavia to Main, pursuant to the requirements of OMC
§ 12.58.015; 2) Approved the Special Event Permit with Assistance League of Orange,
California, Inc., to hold their Annual "Taste of Orange" on April 28, 2013; and 3)
Authorized the sale and permit the purchase, possession, and consumption of alcoholic
beverages at the annual "Taste of Orange" event on a portion of the South Orange
Street public parking lot pursuant to the requirements of OMC §5.72.080.
MOTION - Alvarez
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Item 3.2 and 3.13 were pulled and heard separately. All other items on the Consent
Calendar were approved as recommended.
END OF CONSENT CALENDAR
4. REPORTS FROM MAYOR SMITH —
Mayor Smith asked Community Services Director Marie Knight for an update on the City's
birthday celebration event. Ms. Knight detailed the event's activities scheduled for April 6 th at
noon in the Plaza, and events at the Public Library to follow. Mayor Smith announced the
closure of the Plaza and that the event will promote business for the downtown businesses.
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5. REPORTS FROM COUNCILMEMBERS — None
March 26, 2013
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
6.1 Accept letter of resignation from Raymond Grangoff from the Orange Planning
Commission, effective March 31, 2013.
MOTION - Smith
SECOND - Whitaker
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to accept resignation.
7. ADMINISTRATIVE REPORTS
7.1 2012 -13 Mid -Year Budget Adjustments. (C2500.E)
Discussion — Finance Director Rich Jacobs provided a staff report.
Recommendation No. 1 —
Councilmember Whitaker stated that a year ago he had spearheaded the moving of $1 million
into the pension liability reserve mostly for pension costs, the ACLU gang injunction court
case, and Serrano Woods. He further stated that there is a need for staff to meet internally to
go over loss runs, the profit and loss statement, and look at the trends to take steps to stem the
tide.
Mr. Jacobs addressed Councilmember Whitaker's remarks, and further stated that the City is
doing better in the liability side than the Worker's Compensation side. He added that the costs
for the Serrano Woods case may not be coming from the liability fund, and that the gang
injunction court case may not involve the City. He also explained that worker's compensation
claims can be filed up to two years after an injury, which creates a moving target.
Discussion ensued with the Human Resources Director and the Fire Chief regarding the rise in
worker's compensation costs in the Fire Department. Chief Dibb stated that injuries rise as the
workforce ages, but added that recently nine new firefighters have been hired. Human
Resources Director Steven Pham stated that this should help to reduce overtime costs.
Fire Chief Dibb explained the action that the Fire Department has taken to hopefully offset
further injuries:
• Daily Safety Committee meetings;
• Weekly updates on the Worker's Compensation claims;
• Use of technology, e.g., electric lifts on gurneys;
• Instituted a wellness program to keep employees fit;
• Implementation of a light duty work program.
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CITY COUNCIL MINUTES
7. ADMINISTRATIVE REPORTS (Continued)
March 26, 2013
Council requested monthly updates on the worker's compensation losses be provided to them,
as well as be informed of results of the implementation of the light duty program.
Recommendation No. 2 –
Finance Director Rich Jacobs responded to questions from Councilmember Whitaker and
stated that the City's General Fund balance would be at $5 million at the end of FY 2012 -13,
resulting somewhat from the wind down of the Redevelopment Agency.
Councilmember Whitaker suggested that most of the $4 million coming from the State Finance
Office be transferred to a future infrastructure costs fund.
City Manager John Sibley stated that this will be considered at the next budget Study Session
and that he expected to have a balanced budget at the end of the year.
Council and staff discussed the correlation between employees working overtime being more
susceptible to injury, resulting in worker's compensation claims. The leave balances and
vacancy rates were considered as well.
City Manager John Sibley stated that the City's Safety Committee is very active in looking at
the worker's compensation issue in the Fire Department; that it is hoped that the
implementation of the light duty program will decrease worker's compensation claims; and
that negotiations resulted in certain service level staffing at the eight fire stations.
Chief Dibb responded to a question by Councilmember Whitaker stating that the operating
budget can double with three times the staffing levels to cover eight -hour shifts as practiced on
the East Coast.
MOTION - Smith
SECOND - Alvarez
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
Moved to:
1) a. Authorize the transfer of $1,000,000 from the unreserved fund balance of the Liability
Fund (740) to the Worker's Compensation Fund (730); and
b. Appropriate $500,000 from the unreserved fund balance of the Worker's Compensation
Fund (730) to Account No. 730.1412.52210.00000, Claims Compensation.
2) Authorize the appropriation of $400,000 from the unreserved fund balance of the General
Fund to Account No. 100.3021.50221.00000, Regular Salaries—Safety Overtime; and
3) Authorize the actual transfer of $347,746 from the unreserved fund balance of the General
Fund to the PEG (Public, Educational, and Government Access) Program Fund (130).
8. REPORTS FROM CITY MANAGER – None
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9. LEGAL AFFAIRS
March 26, 2013
9.1 ORDINANCE NO. 01-13(D) (SECOND READING) (Z1500.0 ZCG- 1267- 12(D))
An Ordinance of the City Council of the City of Orange Approving Zone Change No. 1267 -
12(D) Rezoning Certain Properties in the Old Towne "Focus Area" Generally Located North
of La Veta Avenue, South of Palm Avenue, West of the Railroad Tracks, and East of Batavia
to Single Family Residential (R -1), in order to Establish Consistency Between the Low Density
Residential General Plan Land Use Designation and the Zoning Classification in Accordance
with State Law.
NOTE: Councilmember Whitaker announced that he had recused himself from the first
reading of the ordinance due to a possible conflict with his employment, and abstained from
voting.
MOTION - Smith
SECOND - Alvarez
AYES - Alvarez, Smith, Murphy
NOES - Bilodeau
ABSTAIN (RECUSED) - Whitaker
Moved that Ordinance No. 01 -13(D) 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
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CITY COUNCIL MINUTES
11. RECESS TO CLOSED SESSION
March 26, 2013
The City Council recessed at 6:02 p.m. to a Closed Session for the following purposes:
a. Public Employee Performance Evaluation pursuant to Government Code Section 54957.
Title: City Attorney.
City Negotiator: Mayor Smith.
b. 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: City of Orange Police Association and City of Orange Police
Management Association.
c. To consider and take possible action upon such other matters as are orally announced by
the City Attorney, City Manager, or City Council prior to such recess unless the motion to
recess indicates any of the matters will not be considered in Closed Session.
NOTE:
Mayor pro ten Murphy announced he had a possible conflict of interest with his employment
and he would recuse himself from hearing the 7:00 p.m. public hearing discussion (due to Ford
of Orange being in the area to be rezoned —and they are a client of his employer).
Councilmember Whitaker announced he had a possible conflict of interest with his
employment and he would recuse himself from hearing the 7:00 p.m. public hearing discussion
(due to SC Fuels being in the area to be rezoned —and they are a client of his employer).
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CITY COUNCIL MINUTES March 26, 2013
7:00 P.M. SESSION
NOTE: Mayor Smith reported out from the Closed Session that the Council had voted for an
increase to Step F for City Attorney Wayne Winthers, effective April 1, 2013; and that all
councilmembers were present for the vote.
12. PUBLIC COMMENTS —None
13. PUBLIC HEARINGS
13.1 Zone Change No. 1268 -12 Katella Corridor Between Batavia Street and the
Western City Limit. (Z1500.0 ZCG- 1268 -12)
Time set for a public hearing to consider approval of Zone Change 1268 -12 to rezone
properties in the Katella Corridor 2010 General Plan Land Use Focus Area to Urban Mixed
Use (UMU).
NOTE: Mayor pro tem Murphy and Councilmember Whitaker had previously recused
themselves from this item due to possible conflicts of interest with their employment. They
were not present at the meeting.
Discussion — City Attorney Wayne Winthers announced that the ordinance required a majority
vote, so in order to pass the vote must be 3 -0 in favor.
Principal Planner Anna Pehoushek gave the staff report, stating that the Urban Mixed Use
(UMU) zone designation allows for a broader range of commercial uses. She also stated that
the legal non - conforming status would be covered by the 2010 Municipal Code amendment
addressing this issue. She further stated that the area had been considered for zone change in
2011, but failed by a vote of 2 -2 with one abstention.
The Council discussed the differences in the Commercial Recreation v. Mixed -use zone
designations, the plans that the City of Anaheim had for an Anaheim Regional Transportation
Center (ARTC) that would benefit Orange, the potential for a vast increase of tax revenue in
the area, and housing opportunities.
THE MAYOR OPENED THE PUBLIC HEARING.
Speakers —
James Potter — spoke on concerns with the Floor Area Ratio.
Francine Scinto — spoke in favor of the action, citing flexibility with the new zoning, and stated
support for education and parks.
Abe Lelande, representing Mrs. Wilkins, owner of Orangeland RV Park — spoke in favor of
the action, citing flexibility with the new zoning, and stated support for development of the
ARTC Center.
Les Maude — spoke on the building next to the shooting range, and in support of the action.
THE MAYOR CLOSED THE PUBLIC HEARING.
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CITY COUNCIL MINUTES
13. PUBLIC HEARINGS (Continued)
March 26, 2013
Councilmember Bilodeau stated he voted `no' on the 2011 General Plan Amendment due to
concerns with the UMU zoning. He spoke on the current situation of slow growth in another
area with the same zoning near this location, citing State College Blvd. as an example of
developers buying cheap land and sitting on it waiting for a better time to develop. He added
that if a project was proposed for the area and needed a zone change, it would be considered.
He addressed the Regional Housing Needs Assessment (RHNA), stating that the demise of
redevelopment will affect the City's RHNA numbers.
Mayor Smith stated her support for the area being a mixed development of housing,
commercial, recreational, etc. to compliment what is going on in Anaheim, noting there are
four General Plan amendments allowed per year. She further asked of staff:
• To address potential for housing, to include hotels, and mixed use retail;
• Where in the City the UMU designation existed, mentioning parking limitations;
• Possibility of lot consolidation of one to two acres, and what happens to existing
buildings that want to expand;
• Requested RHNA numbers;
• Whether the FAR was required to be at 1.5.
Councilmember Alvarez stated the need to continue addressing the consistency of the zoning
to the General Plan to its conclusion. He stated that the action would create more flexibility for
property owners, and that as is, Orange only gets traffic, but no benefit. He added that owners
with small lots are not required to sell. He summarized areas in the city that were revitalized
by mixed use zoning, and added that this action would create a lot of potential.
Principal Planner Anna Pehoushek provided the information requested and answered further
questions.
THE MAYOR RE- OPENED THE PUBLIC HEARING.
Speaker - William Prothero, owner of the Katella Grill - spoke on concerns with the Floor Area
Ratio, and a scenario in which a catastrophe occurred.
Mayor Smith and staff clarified that in the case of a fire or other catastrophe, the code allowed
for what was last on the property to be rebuilt.
THE MAYOR CLOSED THE PUBLIC HEARING.
Council further discussed the possibility of separating the large and small parcels in this action
and agreed to a continuance.
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CITY COUNCIL MINUTES March 26, 2013
13. PUBLIC HEARINGS (Continued)
Council Action
1) Find that the proposed zoning changes are within the scope of the previously- approved
2010 General Plan, which was evaluated in certified Program EIR No. 1815 -09; and find that
the Program EIR adequately describes the zoning changes for purposes of CEQA and no new
environmental documents are required; and
2) ORDINANCE NO. 02-13 (FIRST READING)
An Ordinance of the City Council of the City of Orange Approving Zone Change No. 1268 -12
Rezoning Properties in the Katella Corridor 2010 General Plan Land Use Focus Area between
Batavia Street and the Western City Limit to Urban Mixed Use (UMU) to Establish
Consistency Between the Urban Mixed Use General Plan Land Use Designation and Zoning
Classification in Accordance with State Law.
MOTION - Smith
SECOND - Alvarez
AYES - Alvarez, Smith, Bilodeau
ABSTAIN (RECUSED) - Murphy, Whitaker
Moved to continue to the May 28 City Council meeting.
14. PLANNING AND ENVIRONMENT — None
15. ADJOURNMENT —
NOTE: Mayor Smith announced the City's 125 Birthday Celebration.; and announced the
cancellation of the April 9 th meeting.
The City Council adjourned at 9:20 p.m. The next Regular City Council Meeting will be held
on Tuesday, April 23, 2013, at 4:30 p.m. in the Council Chambers.
Declaration of Chief Clerk, Robert Zornado, declaring posting of City Council agenda of a
regular meeting of March 26, 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 meeting; and available at the Civic Center City Clerk's Office.
1 17 ?J
ROEff RT ZORNADO
CHIEF CITY CLERK
TERE A E. SMITH
MAYOR
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