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Council Minutes 01/25/11APPROVED BY THE CITY COUNCIL ON FEBRUARY 8, 2011 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING January 25, 2011 The City Council of the City of Orange, California convened on January 25, 2011 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 Carl Friedrich, Praise Chapel 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Mayor Carolyn Cavecche 1.3 ROLL CALL PRESENT - Whitaker, Smith, Cavecche, Dumitru, Bilodeau ABSENT - None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Recognition of Employee Service. 2. PUBLIC COMMENTS —None Paae 1 CITY COUNCIL MINUTES 3. CONSENT CALENDAR January 25, 2011 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 January 6 and 13, 2011. ACTION: Approved. 3.2 City Council Minutes, Regular Meeting of January 11, 2011. (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, period ending December 31, 2010. (C2500.F) ACTION: Received and filed. 3.5 Audited Financial Statements and Related Financial Reports for the Fiscal Year ended June 30, 2010. (C2500.J.1.3) ACTION: Received and filed. AGREEMENTS 3.6 Steve Ambriz Memorial Park Construction Management Consultant Services Agreement. (A2100.0 Agr -5706) ACTION: Approved the Consultant Services Agreement with GKK Works, and authorized the Mayor and City Clerk to execute on behalf of the City. Page 2 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) January 25, 2011 (REMOVED AND HEARD SEPARATELY) 3.7 Official Police Towing and Storage Service Agreements. (A2100.0 Agr- 4710.A; 4714.A; 5707; 5710; 5711) In response to Councilmember Whitaker's request, Police Sergeant Dan Adams gave a staff report. He reported that the scoring process included background checks. He addressed a question regarding California Coach, stating the company was performing improvements to their yard, and that the city would enter into an agreement only at the time of approval of the improvements; and that they were selected due to experience; quality equipment; and efforts expended to meet standards. Andy Lujan of California Coach, provided Council with the details on establishing his operation. Police Chief Gustafson recommended the original four companies be awarded a contract — Tows R Russ, Archie's Towing, American All -Star, and California Coach. Councilman Whitaker expressed concern about the California Coach yard, certain financial aspects of American All -Star Towing, spoke in support of competition among vendors, and noted termination clauses are in place if there is any breach of contract. In response to questions from Mayor Cavecche, Sgt. Adams explained how rotation occurs between multiple providers; and that if special equipment is needed, a skip can occur to call upon the company best equipped for the job. Mayor Cavecche noted that residents could get different levels of tow yard facilities if all companies are included in the rotation process. Mayor pro tem Smith supported the recommendation of the Police Department, noting American All -Star met qualifications based on criteria. MOTION - Whitaker SECOND - Dumitru AYES - Whitaker, Dumitru, Bilodeau NOES - Smith, Cavecche Moved to: 1) Authorize the Mayor and City Clerk to execute, on behalf of the City, agreements between the City and Tows R Russ, Archie's Towing, South Side Towing, Authentic Brothers, and California Coach once implementation of improvements completed, effective March 1, 2011, with a review memo on performance of each company in six months; and 2) Approve accompanying Fee Schedule, effective March 1, 2011. Page 3 CITY COUNCIL MINUTES 3. CONSENT CALENDAR (Continued) January 25, 2011 (REMOVED AND HEARD SEPARATELY) 3.8 Agreement with EyeMed Vision Care to provide vision services to employees and retirees effective January 1, 2011 through December 31, 2013. (A2100.0 Agr- 3909.D) In response to Councilmember Whitaker's request, Human Resources Manager Mike Harary stated that bidding process had occurred and there is no fiscal impact to the City. MOTION - Whitaker SECOND - Dumitru AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau ACTION: Approved a three year contract with Eye Med Vision in conjunction with Fidelity Insurance Life Insurance Company for employee and retiree vision insurance coverage benefits, and authorized the Mayor and City Clerk to execute on behalf of the City. 3.9 Adult Basketball Program Services Agreement with Ace5on5 Sports. (A2100.0 Agr- 4136.C) ACTION: Approved the Program Services Agreement for administration of the program at the Sports Center at Grijalva Park; and authorized the Mayor and City Clerk to execute on behalf of the City. 3.10 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. Juan Moya b. Parking Concepts, Inc. C. County of Orange ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster. MEMBERSHIP (REMOVED AND HEARD SEPARATELY) 3.11 City Membership in the Association of California Cities — Orange County (ACCOC). (OR1800.0.12.5) Council discussed the positive benefits of having a collective Orange County voice at the state level at a minimal cost, with a review in one year of the services provided. Page 4 CITY COUNCIL MINUTES January 25, 2011 3. CONSENT CALENDAR (Continued) Speakers - Lacy Kelly, ACCOC CEO; Mayor Jerry Amante, City of Tustin. Councilmember Bilodeau expressed concern with money being expended on this membership and on the technical formation of this organization. MOTION - Cavecche SECOND - Dumitru AYES - Whitaker, Smith, Cavecche, Dumitru NOES - Bilodeau Moved to authorize the City Manager to join, and pay membership dues, to the Association of California Cities — Orange County, for a term of one year. NOTICES (REMOVED AND HEARD SEPARATELY) 3.12 Notice of Establishment for Implementation of Quiet Zone at Olive and Orange Subdivisions Rail- Highway Grade Crossings within the City of Orange. (T2200.0) Mayor pro tem Smith thanked the collaborating agencies and concerned citizens who worked on bringing this issue to fruition. Public Works Director Joe DeFrancesco stated that the larger signs will be put up prior to quiet zone designation expected in March. MOTION - Smith SECOND - Bilodeau AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to authorize the City Manager to execute the Notice of Establishment documents related to Quiet Zone implementation for the sixteen rail- highway grade crossings within the City. Page 5 CITY COUNCIL MINUTES January 25, 2011 3. CONSENT CALENDAR (Continued) PURCHASES (REMOVED AND HEARD SEPARATELY) 3.13 Purchase of Firearms for the Police Department's SWAT Team. (C2500.K) Staff provided Council with the benefits of purchasing firearms from a local vendor in Orange County for servicing of the weapons. MOTION - Bilodeau SECOND - Cavecche AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to appropriate $68,730 to account 355.4021.55131 (Federal Asset Forfeiture - Patrol- Equipment) for the purchase of 20 Colt 6933 M4 automatic rifles from Adamson Police Products at a purchase price of $68,730. 3.14 Purchase of Communications Headsets for the Police Department's SWAT Team. (C2500.K) ACTION: Appropriated $13,154 to account 355.4021.55131 (Federal Asset Forfeiture - Patrol- Equipment) for the purchase of 20 Special Forces Liberator II Tactical headsets from Tactical Command Industries, Inc. (REMOVED AND HEARD SEPARATELY) 3.15 Purchase of Cellular Phone Service from Verizon Wireless through a Cooperative Purchasing Agreement. (C2500..n Councilmember Bilodeau wanted to ensure the City was exempt from paying the Federal Excise Tax. MOTION - Bilodeau SECOND - Cavecche AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to authorize purchase of cellular phone service from Verizon Wireless in the amount of $100,000. MOTION - Smith SECOND - Dumitru AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Items 3.7, 3.8, 3.11, 3.12, 3.13 and 3.15 were removed and heard separately. All other items on the agenda were approved. END OF CONSENT CALENDAR Page 6 CITY COUNCIL MINUTES January 25, 2011 4. REPORTS FROM MAYOR CAVECCHE — Mayor Cavecche asked the Public Works department for a report back on a well being dug by Irvine Ranch Water District in the Orange Park Acres area. 5. REPORTS FROM COUNCILMEMBERS — Councilmember Bilodeau asked that the City look at the pros and cons of annexing property recently donated by The Irvine Company, which is within the City's sphere of influence. He asked for a report back from the City Manager in three months. Councilmember Bilodeau requested a workshop be held on the future plans of the City's Redevelopment Agency. It was suggested that the workshop be held at 7:00 p.m. on one of the Council meeting nights in February. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 7. ADMINISTRATIVE REPORTS 7.1 Review of Information Technology Outsourcing Proposals. (Continued from January 11, 2011.) (A2100.0 Agr -5700) Discussion — Acting Assistant City Manager Rick Otto provided a staff report. He addressed the five issues raised by Synoptek regarding the City's evaluation of their proposal and summarized the basis for the IT Steering Committee ranking ACS as the top vendor. Terry Hackelman, NexLevel consultant, responding to Council's questions, reported that the City staff performed due diligence in their assessment of the two proposals. He added that after reviewing the scoring and consulting with the evaluation team, he concurred with the recommendation to select the ACS company. Mr. Otto, responding to a question from Councilmember Whitaker, stated that Synoptek has good experience with IT Infrastructure Library (ITIL) standards, but that ACS is also experienced with ITIL, and in responding to the RFP requirement is proposing to pursue and meet this condition. He then stated that the RFP lists service levels that must be met and that monthly reports are used to evaluate accountability. He explained the evaluation criteria was expanded from six to ten components after only two proposal were submitted — that it was the same criteria, simply drilled down to more specifics. He also apprised the Council that the agreement is for five years with options to extend to a maximum of eight years. At Mayor Cavecche's request, Police Captain Cahill and Fire Chief Lewis, two members of the IT Steering Committee addressed their reasoning for ranking ACS higher than Synoptek in their evaluation. Both indicated that ACS had IT staff with excellent experience in supporting public safety technology, while Synoptek was lacking in this area. Page 7 CITY COUNCIL MINUTES 7. ADMINISTRATIVE REPORTS (Continued) Speakers — Tim Britt, Synoptek; Raja Ammari, Synoptek; Puneet Memru, Synoptek; Glen Park, Synoptek; Edward Holt, Synoptek; January 25, 2011 Eric Codorniz, Synoptek; Thom Owim, Independent Consultant; Robert Whitten, Synoptek President; Paul Dorin, ACS. Council discussed their concerns with awarding the contract to Synoptek because of soft costs, their lack of experience in safety departments, no costs escalator over the years of the agreement, and none of the assessment panel rated Synoptek as No. 1. Synoptek was commended for their efforts and passion in putting forth their proposal. Councilmember Bilodeau suggested in the future that evaluation criteria not be changed, although recognizing that it would not have affected the outcome. MOTION -Smith SECOND - Whitaker AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to direct staff to negotiate an Information Technology Outsourcing Services Agreement with ACS, the top ranked vendor, for future City Council consideration. Added direction to staff to negotiate a reduced Consumer Price Index increased in the out years of the contract and the development of a reasonable path for establishment of an IT Infrastructure Library. 8. REPORTS FROM CITY MANAGER 8.1 Budget Status Report. (C2500.E.4) MOTION - Cavecche SECOND - Bilodeau AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to Continue to February 8 1h meeting at 4:30 p. m. Page 8 CITY COUNCIL MINUTES 9. LEGAL AFFAIRS - None January 25, 2011 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council did not recess to a Closed Session for the following purposes: a. 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. Page 9 CITY COUNCIL MINUTES January 25, 2011 7:00 P.M. SESSION 12. PUBLIC COMMENTS - None 13. PUBLIC HEARINGS 13.1 PROPOSED WATER RATE INCREASE. (A2500.0 Ord -02 -11 Water Rates) Time set for public hearing to consider adopting new rates for providing water service to residential, commercial, industrial and institutional customers. NOTE: Councilmember Bilodeau recused himself from the meeting, citing a possible conflict with his role as a Board Member on the Orange County Water District; and left the dais. Discussion — Acting Water Services Manager Michael Wolfe presented the staff report. He stated the need to raise the City water rates is due, in large part, to the increasing costs to purchase water from Orange County Water District (OCWD) and Metropolitan Water District (MWDOC). He added that currently the City's water fund is operating at a deficit since the City is selling water to its customers for less than what it is costing to produce the water. He explained the reason for the difference between the cost of water from OCWD and MWDOC; adding that other cost factors included pumping costs, electricity costs, maintenance of wells, and employee costs; while noting that the City Water Department has taken measures to minimize expenditures. In response to Council questions, Mr. Wolfe provided information on other cities' practices; and the cost of running the City's water lab. He stated that even with the initial proposed increase, the rates in Orange would still be one of the lowest in the County. THE MAYOR OPENED THE PUBLIC HEARING. Speakers — The following persons raised various points in opposition to the proposed water rates increase: Increase is more than increase from Metropolitan Water District; compounded 76% increase is too high; need to work with Corps of Engineers for use of Prado Dam for more water storage; need to push back to Metropolitan Water District; poor management has resulted in currently selling water for less than it is purchased for; need for new tier structure for multi - family units; suggestion for a citizen's advisory board to assist the city in reviewing water rates and expenditures; need for more water conservation; there should not be an increase on capacity charge; need to look at other charges on water bills; should not compare Orange rates to South County cities; salaries and benefits should not increase; and tiered rates. Werner Deffner John Rau Bob Thielen Richard Hasenohrl Mike Cash Michael Chew Conrad Wyszomirski Stoney Lee Laura Thomas R. Sanchez; Marvin Sobel Peter Friday Richard Drake Michael J. Ryerson Robert Delaney KathyAshford Greg Chilecky Henry Nowakowski Tom Godfrey Page 10 CITY COUNCIL MINUTES January 25, 2011 13. PUBLIC HEARINGS (Continued) THE MAYOR CLOSED THE PUBLIC HEARING. City Attorney David DeBerry explained the Proposition 218 process; and the City Clerk noted there were 83 written protests received. Mr. Wolfe addressed comments made by the speakers, and answered questions posed by Council, explaining the purpose of the capacity charge; the practice of reporting on costs; future costs to purchase water; whether there exists other sources of water; that there are costs to use untreated water; the Corps of Engineers' practices at Prado Dam; that East Orange homes will be served by Irvine Ranch Water District, not the City; calculating tiered rates; the goal of a Water Fund reserve; spoke to the idea of a water advisory board; and that currently the charge to deliver three gallons of water is one penny. He added that multi- family dwellings have the option to request separate meters for each unit. City Manager John Sibley refuted the citizen charge that the City had hired more personnel, stating that the City has lost employees, is currently observing a hiring freeze; and that current employees have incurred a 5% furlough cut in recent years. Mayor pro tem Smith clarified with staff that if the City does not pay the water providers, penalties and interest will occur; and if the rates are not raised, the City's General Fund would have to subsidize the Water Fund. Mayor Cavecche stated that she would not vote for a budget that utilizes the General Fund to subsidize the Water Fund. She requested a model of actual costs for the service capacity charge versus the water consumption charge. She added that she had questioned the service capacity charge, and that she would like to address street sweeping charges. Councilmember Whitaker clarified administrative costs and commented on the need to keep them at 10% of gross revenues to just break even. He stated his desire to de- couple the street sweeping charges from water rates. He also commented on the idea of selling the City's water company if someone else could run it better. He ended with a request for an 11 % increase model, and the possibility of following the Government Code that allows for automatic water rate increases based on cost increases. Councilmember Dumitru entered into the discussion on the positive and negative results of selling the water system, commenting on the City losing control of rates altogether under that scenario. He then asked, if the target fund balance could be lowered, could the water rate increase be lowered; and requested a breakdown of the costs from MWDOC and OCWD. MOTION - Cavecche SECOND -Smith AYES - Whitaker, Smith, Cavecche, Dumitru, ABSENT (RECUSED) - Bilodeau Moved to continue to February 8, at 7:00 p.m. for further information on the ideas presented at this meeting. Page 11 CITY COUNCIL MINUTES January 25, 2011 14. PLANNING AND ENVIRONMENT 15. ADJOURNMENT — The City Council adjourned at 11:30 p.m. The next Regular Council Meeting is scheduled for Tuesday, February 8, 2011, at 4:30 p.m. Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a regular meeting of January 25, 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 co mmencement of said regular meeting; and available at the Civic Center City Clerk's Office. Y AURPHY CITY CLERK Page 12