Council Minutes 03/27/12APPROVED BY THE CITY COUNCIL ON APRIL 10, 2012
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
March 27, 2012
The City Council of the City of Orange, California convened on March 27, 2012 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 Finance Director Rich Jacobs
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Fred Whitaker
1.3 ROLL CALL
PRESENT - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
Community Services Department - Recognition of 2011 Community Event Sponsors
Recognition of Employee Service
2. PUBLIC COMMENTS -
Matthew Dragas, Buffalo Wild Wings at The Outlets, spoke on their plans to re -open
their Conditional Use Permit to amend their hours of operation.
Will Heilbut, AIDS Walk OC, spoke on the event to be held on May 6 th at Disneyland.
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CITY COUNCIL MINUTES
3. CONSENT CALENDAR
March 27, 2012
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 March 1 and March 8, 2012.
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of March 13, 2012 and Adjourned
Regular Meeting of March 13, 2012. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
APPROPRIATIONS
3.4 Agreement with Midwest Roofing Company, Inc. and Appropriation of Funds for
Removal and Replacement of the Roof on the Community Building at Hart Park.
A2100.0 Agr -5855
ACTION: Appropriated $51,880 from unreserved Fund 511 to Account No.
511.7021.56015.20138 (Hart Park Community Building Roof Replacement); and
awarded contract to Midwest Roofing Co., Inc. and authorized the Mayor and City
Clerk to execute on behalf of the City.
BIDS
3.5 Bid No. 112 -18; Annual Pavement Maintenance at Various Locations, Fiscal Year
2011 -12; approval of plans and specifications and authorization to advertise for
bids. (S4000.S.7)
ACTION: Approved plans and specifications and authorized advertising for bids for
the Annual Pavement Maintenance at Various Locations, FY 2011 -12 Project.
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CITY COUNCIL MINUTES March 27, 2012
3. CONSENT CALENDAR (Continued)
3.6 CLAIMS (C3200.0)
SUMMARY: 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. First United Methodist Church
b. Lisa Gange
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
CONTRACTS
3.7 Final Acceptance of Bid No. 112 -02; Street Rehabilitation and Reconstruction
Projects: Lemon Street, Olive Street, Palmyra Avenue, Century Avenue,
Norwood Street, Burly Avenue, Alanda Avenue, Thomas Street and Lemon Street
performed by Hardy & Harper, Inc.; and authorization to file the Notice of
Completion with the County Recorder. (No staff report required.) (A2100.0 Agr -
5805)
ACTION: Accepted public work improvements, authorized release of International
Fidelity Insurance Company, Bond No. 0572633 in the amount of $633,000.00 to the
contractor on said job, and authorized the Mayor and City Clerk to execute the Notice
of Completion.
3.8 Final Acceptance of Bid No. 112 -08; Automatic Retractable Screens Phase I / Old
Towne Retractable Screens: Various Locations performed by West Coast Storm,
Inc.; and authorization to file the Notice of Completion with the County Recorder.
(No staff report required.) (A2100.0 Agr -5834)
ACTION: Accepted public work improvements, authorized release of Westchester Fire
Insurance Company, Bond No. K08349976 in the amount of $76,972.00 to the
contractor on said job, and authorized the Mayor and City Clerk to execute the Notice
of Completion.
3.9 Final Acceptance of Priority Improvements; Steve Ambriz Memorial Park, Storm
drainage through the Park, Lincoln Avenue /Riverbend Parkway Intersection,
Slurry Paving of Riverbend Parkway, and the Bioswale and Water Quality Basin
performed by ITX Construction /Consultants, Inc.; and authorization to file the
Notice of Completion with the County Recorder. (No staff report required.)
(A2100.0 Agr -5725)
ACTION: Accepted "Priority Improvements" as outlined in the Acquisition
Agreement dated December 1, 2009 and any subsequent amendments and; authorized
the Mayor and City Clerk to execute the Notice of Completion.
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CITY COUNCIL MINUTES March 27, 2012
3. CONSENT CALENDAR (Continued)
RESOLUTIONS
3.10 RESOLUTION NO. 10639 (C2500.E)
A Resolution of the City Council of the City of Orange Expressing Appreciation to
Virginia Nerio Commending Her for More than Ten Years of Loyal and Dedicated
Service to the City of Orange and Over Twenty Years of Public Service.
ACTION: Approved
3.11 RESOLUTION NO. 10640 (C2500.H)
A Resolution of the City Council of the City Of Orange Expressing Appreciation to
Firefighter Roger Fitschen of the Orange City Fire Department for Forty Years of Loyal
and Dedicated Service.
ACTION: Approved
REPORTS
3.12 General Plan Annual Progress Report to the State of California. (C2300.E)
ACTION: Received and filed 2011 General Plan Annual Progress Report for submittal
to the State.
SPECIAL EVENTS
3.13 Special Events Permit with Motorsports Industries to Host a Z -car Exhibition Car
Show on Sunday, April 29, 2012. (P1300.0.9)
ACTION: 1) Approved the Special Events Permit with Motorsports Industries to host a
Z -car Exhibition Car Show on April 29, 2012; and 2) authorized the closure of Collins
Avenue from Batavia Street to Main Street, pursuant to the requirements of Section
12.58.015 of the Orange Municipal Code.
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CITY COUNCIL MINUTES March 27, 2012
3. CONSENT CALENDAR (Continued)
3B. SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY
3.14 Approval of the Proposed Recognized Obligation Payment Schedule (ROPS2) for
the period of July 1, 2012 — December 31, 2012; and authorize the Transmittal of
the ROPS2 to the Oversight Board Pursuant to Assembly Bill 26. (SA1000.0)
Note: The City Clerk read the list of line items and reasons for the Council
abstentions.
RESOLUTION NO. SAORA -003
A Resolution of the Governing Body of the Successor Agency to the Orange
Redevelopment Agency Adopting a Proposed Recognized Obligation Payment
Schedule as referred to in Section 34177(1)(2)(A) of the California Community
Redevelopment Law.
ACTION: Approved resolution and directed minutes to reflect City Council
abstentions and reasons therefore:
Mayor Cavecche — No. 10 due to her position on the Orange County Transportation
Authority Board.
Mayor pro tern Bilodeau — Nos. 1, 2, 3, 4, 28, and 37 due to his employment with the
County of Orange.
No. 7 due to his position on the Orange County Water District Board.
Nos. 8, and 9 due to his position as an alternate on the Orange County Sanitation
District Board.
No. 11 due to his position on the Orange County Vector Control District Board.
Councilmember Whitaker — No. 5 due to his position on the Santiago Canyon College
Foundation Board.
No. 29 due to SC Fuels being a source of income for his law firm.
Nos. 46 — 47, and 57 — 61 due to Metrolink being a source of income for his law firm.
Councilmember Dumitru — Nos. 8 and 9 due to his position on the Orange county
Sanitation District Board.
MOTION - Whitaker
SECOND - Smith
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
All items on the Consent Calendar were approved as recommended with recorded line
item abstentions and reasons therefore on Item 3.14.
END OF CONSENT CALENDAR
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CITY COUNCIL MINUTES March 27, 2012
4. REPORTS FROM MAYOR CAVECCHE
4.1 Consideration of Appointment of Mr. Robert Imboden to the Design Review
Committee, to Fill an Unexpired Term through June 30, 2012.
MOTION
- Cavecche
SECOND
-Smith
AYES
- Whitaker, Smith, Cavecche
NOES
- Dumitru
ABSTAIN
- Bilodeau
Moved to approve the appointment of Mr. Robert Imboden to the Design Review Committee
to fill an unexpired term through June 30, 2012.
5. REPORTS FROM COUNCILMEMBERS - None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
7. ADMINISTRATIVE REPORTS
7.1 Exclusion of All Future Elected Officials from the Public Employees Retirement
System (PERS). (Continued from February 14, 2012.) (A2100.0 Agr- 0281.16)
Discussion — Assistant City Attorney Wayne Winthers gave a brief staff report.
RESOLUTION NO. 10627
A Resolution of the City Council of the City of Orange Giving Notice of Intention to Approve
an Amendment to the Contract Between the Board of Administration of the California Public
Employees' Retirement System and the City Council of the City of Orange to Exclude Future
Elected Officials from Membership in the Retirement System.
MOTION - Cavecche
SECOND - Whitaker
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved to approve Resolution No. 10627.
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CITY COUNCIL MINUTES March 27, 2012
7. ADMINISTRATIVE REPORTS (Continued)
ORDINANCE NO. 01 -12 (FIRST READING)
An Ordinance of the City Council of the City of Orange Authorizing an Amendment to the
Contract between the Board of Administration of the California Public Employees' Retirement
System and the City of Orange to Exclude Future Elected Officials from Membership in the
Retirement System.
MOTION - Whitaker
SECOND - Smith
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved that Ordinance No. 01 -12 be read by title only and same was set for second reading by
the preceding vote.
8. REPORTS FROM CITY MANAGER - None
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 06-12 (SECOND READING) (Z1500.0)
An Ordinance of the City Council of the City of Orange Amending Title 17 of the Orange
Municipal Code to Allow Homeless Shelters in the M -1 and M -2 Zoning Districts, Subject to
Certain Development Standards and Requirements.
MOTION - Smith
SECOND - Whitaker
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved that Ordinance No. 06 -12 be read by title only and same was approved and adopted by
the preceding vote.
9.2 ORDINANCE NO. 19 -11 (SECOND READING) (A2500.0 Ord- 19 -11)
An Ordinance of the City Council of the City of Orange Amending Chapter 17, Section
17.20.240 of the Orange Municipal Code Regulating Electromagnetic and Radio Frequency
Interference.
MOTION - Whitaker
SECOND - Bilodeau
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved that Ordinance No. 19 -11 be read by title only and same was approved and adopted by
the preceding vote.
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CITY COUNCIL MINUTES
March 27, 2012
10. ITEMS RELATING TO THE SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY
11. NOTICED HEARINGS
11.1 2012 Edition of the Standard Specifications for Public Works Construction.
(A2500.0 Ord- 04 -12)
Time set for a Noticed Hearing to Consider Adoption of the 2012 Edition of the Standard
Specifications for Public Works Construction.
THE MAYOR OPENED THE PUBLIC HEARING.
THERE BEING NO SPEAKERS, THE MAYOR CLOSED THE PUBLIC HEARING.
ORDINANCE NO. 04-12 (FIRST READING)
An Ordinance of the City Council of the City of Orange Amending Chapter 12.02 of the
Orange Municipal Code to Adopt the 2012 Edition of the "Standard Specifications for Public
Works Construction ".
MOTION - Whitaker
SECOND - Smith
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved that Ordinance No. 04 -12 be read by title only and same was set for second reading by
the preceding vote.
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CITY COUNCIL MINUTES March 27, 2012
12. RECESS TO CLOSED SESSION
1. The Successor Agency recessed at 5:05 p.m. to a Closed Session for the following purposes:
a. Conference with Legal Counsel — Existing Litigation — Significant exposure to litigation
pursuant to California Government Code Section 54956.9(b):
One potential case — Cask and Clever, Inc.,
Case No. 30- 2009 - 00121095- CU- UD -CJC
2. The City Council recessed at 5:05 p.m. to a Closed Session for the following purposes:
b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:
City Negotiator: Jeffrey Freedman, Special Counsel, and
David A. DeBerry, Interim City Attorney
Employee Organizations: All Bargaining Units
C. Public employee appointment /employment pursuant to Government Code Section 54957:
Title: City Attorney
d. 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 Cavecche reported out from the Closed Session, regarding Item c, that
Council directed the Assistant City Attorney Wayne Winthers to write, and staff to
execute, a contract with Bob Murray and Associates for recruitment services for a City
Attorney.
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CITY COUNCIL MINUTES
7:00 P.M. SESSION
13. PUBLIC COMMENTS - None
14. PUBLIC HEARINGS
14.1 PROPOSED WATER RATE INCREASE. (C2500.P)
March 27, 2012
Time set for public hearing to consider adoption of new rates to provide water service to
residential, commercial, industrial, and institutional customers.
Discussion — Public Works Director Joe DeFrancesco introduced Larry Dick, Director, and
Kevin Hunt, General Manager, Municipal Water District of Orange County (MWDOC), the
wholesale water provider; as well as Ann Bui, Director, Black and Veatch Corporation,
preparers of the rate model and rate study.
Deputy Public Works Director Michael Wolfe provided a staff report, reviewing pass- through
and multi - family residential options, fixed and variable costs, and a 5 -year rate model. He
stated that the Water Department looked at overhead and fixed costs to identify where savings
might occur and reported on the changes to utility billing, the freezing of six positions, and the
deferment of landscape maintenance.
Discussion ensued on the cost of water purchased from water providers, and the differences of
multi - family v. single - family usage of water. City Attorney David DeBerry explained what
constitutes compliance with Prop. 218 regulations.
Councilmember Dumitru asked about the recent water rates case involving the City of
Palmdale, noting that the Second Appellate Court's opinion specifically stated that Palmdale's
rates were unconstitutional by State constitution because it had no showing of disparity
amongst parcels.
Mr. DeBerry responded that as long as the Black & Veatch study supported the reasonable
costs of providing water, the City would be Prop. 218 compliant.
Mayor Cavecche stated that the OCWD directed the maximum percentage of water the City
was allowed to pump, and the balance was purchased import water. Council received
clarification on various aspects of costs, operation, noticing, the water fund, and Orange having
the lowest rates in the County.
Mayor pro tem Bilodeau stated the pass- through option appealed to him, noting it is strictly a
commodity charge, would save Prop 218 mailing costs, and that the Water Fund is a self
sustaining operation. However, if approved, and the pass- through costs would increase, he
would like to see an item on the Council agenda for the public to be able to address Council for
an explanation on the Consent Calendar. Council agreed to this condition being added to the
resolution as Condition No. 6.
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CITY COUNCIL MINUTES March 27, 2012
14. PUBLIC HEARINGS (Continued)
THE MAYOR OPENED THE PUBLIC HEARING.
Speakers —
Mr. John M. Rau spoke on lack of information for the public, the need for a Profit & Loss
Statement, employees salaries, and the Corps of Engineers 100 - year -flood plan;
Mr. Lynn Musgrave wanted confirmation that employee salary and retirement costs were not
part of the reason for the cost increase;
Mr. Ashgrove spoke on whether the savings had been returned to the Water Fund; the proposed
increase of 3% for the next five years; and whether the model was based on actual or projected
costs;
Linda Pamitch spoke on the compounding of the yearly percentage increases.
The City Clerk announced that 73 protest letters had been received from property owners.
THE MAYOR CLOSED THE PUBLIC HEARING.
Council addressed the concerns of the speakers.
Assistant City Manager Rick Otto clarified that if Council wanted to approve the multi - family
residential rate change, they need to reflect this by reference to Attachment Al in the
Resolution.
RESOLUTION NO. 10638
A Resolution of the City Council of the City Of Orange Amending and Revising the Master
Schedule of Fees and Charges for Water Rates.
MOTION
- Whitaker
SECOND
- Cavecche
AYES
- Whitaker, Smith, Cavecche, Bilodeau
NOES
- Dumitru
Moved to approve Resolution No. 10638 with Attachment Al water rates, and that prior to the
implementation of any pass- through adjustments in water rates and fees authorized by this
Resolution, such pass - through adjustments shall be placed on the City Council agenda as a
receive and file item under the Consent Calendar.
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CITY COUNCIL MINUTES March 27, 2012
14. PUBLIC HEARINGS (Continued)
MOTION - Whitaker
SECOND - Cavecche
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved to authorize the annual transfer of 12% of the water rate revenues from Fund 600
(Water) to Fund 601 (Water Capital Projects) for FYs 2012 -13 through 2015 -16, and a 10%
transfer for FY 2016 -17 and thereafter.
MOTION - Whitaker
SECOND - Bilodeau
AYES - Whitaker, Smith, Cavecche, Bilodeau, Dumitru
Moved to receive and file the Water Rate Study conducted by Black & Veatch Corporation.
15. PLANNING AND ENVIRONMENT - None
16. ADJOURNMENT - The City Council adjourned at 8:50 p.m. The next Regular City
Council meeting will be held on Tuesday, April 10, 2012 at 4:30 p.m. in the Council
Chambers.
Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a
regular meeting of March 27, 2012 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.
MARY710AURP
CITY CLK
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