Special Meeting 04/07/11APPROVED BY THE CITY COUNCIL ON APRIL 26, 2011
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A SPECIAL MEETING April 7, 2011
The City Council of the City of Orange, California, convened a Special Meeting at 5:30 p.m. on
April 7, 2011, in the Council Chambers, 300 E. Chapman Avenue, Orange, California.
5:30 P.M. SPECIAL MEETING
1. OPENING
1.2 PLEDGE OF ALLEGIANCE – led by Councilmember Bilodeau
1.3 ROLL CALL
PRESENT - Whitaker, Smith, Cavecche, Dumitru, Bilodeau
ABSENT - None
Note: Councilmember Whitaker arrived at 5:40 p.m.
2. PUBLIC COMMENTS - None
3. RECESS TO CLOSED SESSION
The City Council recessed at 5:40 p.m. to a Closed Session for the following purposes:
a. Conference with Labor Negotiator pursuant to Govt. Code Section 54957.6:
City Negotiators: Assistant City Manager Rick Otto
Human Resources /Employee Relations Director Steven Pham
Assistant Human Resources Director Mike Harary
Attorney Jeffrey Freedman
Employee Organizations: All Bargaining Units
b. Public Employee Performance Evaluation pursuant to Govt. Code Section 54957.
Title: City Manager
4. REPORTS FROM COUNCILMEMBERS
4.1 Councilmember Bilodeau -
Request for Consideration of the following Bill: SB 77 – Community Redevelopment
(Committee on Budget and Fiscal Reform)
Councilmember Bilodeau stated SB 77 is being considered in the State Assembly, passing out of
the State Senate; and currently awaiting a vote. He stated that the bill would wind down
Redevelopment Agencies in California, which he supported. He stated the agencies divert
desperately needed money away from schools, public safety, special districts, and if the bill
passed, the City could see up to a $3 million increase in its property tax increment. He noted his
opposition to the redevelopment set -aside housing increment for low- income housing, stating
that the private sector, through the free market, would develop low- income housing with the
concessions currently provided by the cities. He added the agencies distort free markets—noting
that part of the city's redevelopment funds are provided to two large corporations not needing the
assistance, but that they are paid to ensure they stay in Orange. He requested the Council take a
support position on the bill.
CITY COUNCIL MINUTES April 7, 2011
4. REPORTS FROM COUNCILMEMBERS (Continued)
Speakers —
Assemblyman Chris Norby spoke in support of SB 77. He stated that the abolition of
redevelopment agencies would amount to a $1.7 billion immediate state savings, with additional
long -term savings. He stated that the passage of SB 77 would allow Redevelopment Agencies to
continue for the sole purpose of paying off bonded indebtedness, with their ongoing increment
being restored to education.
Wayne King thanked City staff for their timely response to previous requests he made regarding
the review of redevelopment in the City. He stated that redevelopment has been a success in
Orange, but has caused a parking problem. He summarized his support for SB 77.
Mayor Cavecche stated she would not support the motion. She stated the proponents of this bill
believe that the means justifies the end. She stated her approval of the goal of abolishing
redevelopment agencies, but that she felt this bill would not accomplish that in a correct way.
She noted that it would require the establishment of another housing authority. She stated that
the bill is still being worked on and she could not support a bill without knowing its full
ramifications. She noted this bill would actually punish Orange for its conservative approach,
yet reward cities that have accumulated massive amounts of debt. She stated it punishes the
County as well, due to Orange County being a basic aid county. She stated it would circumvent
the State's need to apply spending caps, and address pension reform. She stated a hope for a bill
she could support that would address all of these concerns.
Councilmember Whitaker stated his agreement with the Mayor, noting that there are still on-
going negotiations to craft a bill that would have a phased -in sunset of redevelopment, as well as
providing for ways to repatriate assets back to the localities instead of a state grab. He stated
hope for the end of redevelopment that favors one business over another.
Mayor pro tem Smith stated she would not support the motion due to her support for the Orange
Redevelopment Agency, and what it has been able to accomplish over the many years it has been
in existence. She stated the list of redevelopment supported projects included parks, community
facilities, roads, wells, and parking. She refuted that it only supports businesses and restaurants.
She stated the need for housing set -aside as an incentive.
Councilmember Bilodeau stated it is one vote away from passage in the Assembly. He stated it
will pass, and he felt it was important for the City to weigh in before its passage.
MOTION - Bilodeau
SECOND - Dumitru
AYES - Dumitru, Bilodeau
NOES - Whitaker, Smith, Cavecche
Moved to take a support position on SB 77, and transmit a letter to the author in Sacramento.
(MOTION FAILED)
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CITY COUNCIL MINUTES April 7, 2011
4. REPORTS FROM COUNCILMEMBERS (Continued)
Councilmember Bilodeau — Request for Consideration of the following Bills:
AB 385 — High -speed Rail (Harkey)
AB 76 — High -speed Rail (Harkey)
Councilmember Bilodeau stated that AB 385 would require that an investment -grade analysis be
done on the project and the resulting business plan be presented to the legislature. He stated the
voters approved Proposition IA in 2008 providing approximately $10 billion in general
obligation bonds to build a high -speed rail project and the cost has now ballooned to $40 billion
to complete the system. He reiterated his concerns leading to his opposition to the project. He
requested support for both bills and the transmittal of a letter to Assemblywoman Harkey, the
author, stating the City position.
Councilmember Whitaker stated that the airports and airlines, which are government- subsidized
high -speed transportation systems, lack ridership levels to fund the profitable operation of the
systems. He stated that transportation studies show a lack of ridership for a high -speed rail as
well.
Councilmember Dumitru emphasized his support to transmit the letter of support, stating that the
project is a fraud on the taxpayers of California. He stated he would never support high -speed
rail, nor its impacts on Orange.
MOTION - Bilodeau
SECOND - Whitaker
AYES - Whitaker, Dumitru, Bilodeau
NOES - Smith, Cavecche
Moved to support both bills and transmit a letter to Assemblywoman Harkey, the author, stating
the City's position.
(MOTION PASSED)
4.2 Councilmember Dumitru — Request for Consideration of the following Bill:
AB 26 — The Secure Immigration Enforcement Act (Donnelly)
NOTE: This item was withdrawn from consideration due to the bill not passing out of the
Assembly Judiciary Committee.
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CITY COUNCIL MINUTES
5. ADJOURNMENT — The City Council adjourned at 9:15 p.m.
April 7, 2011
Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a
special meeting of April 7, 2011 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.
AN LIN ANDRE U S
DEPUTY CITY CLERIC
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