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08-10-1999 Council Minutes APPROVED BY THE CITY COUNCIL ON AUGUST 24, 1999 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING August 10, 1999 The City Council of the City of Orange, California convened on August 10, 1999 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 Pastor Tom Hoover, Covenant Family Fellowship Free Methodist Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Murphy 1.3 ROLL CALL PRESENT -Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz announced Concerts in the Park will be held on August 11 th at 7:00 p.m. at Hart Park and on August 12th at Depot Park. 2. PUBLIC COMMENTS Carole Walters, (address on file), commented residents should not have to pay for services that are not being provided. 3. CONSENT CALENDAR Tape 163 3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of August 10, 1999 at Orange Civic Center, Main Library at 101 N. Center Street, Police facility at 1107 North Batavia, the Eisenhower Park Bulletin Board, and summarized on Time-Warner Communications, 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. ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk. PAGEl CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) 3.2 Request Council Confirmation of warrant registers dated July 22, 27 and 29, 1999. ACTION: Approved. 3.3 Request approval of City Council Minutes, Adjourned Regular Meeting, July 20, 1999 and Regular Meeting, July 27,1999. ACTION: Approved. 3.4 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. APPROPRIATIONS (REMOVED AND HEARD SEPARATELY) 3.5 Appropriation of funds for Jeff Franzen, CPA, forensic accountant in assisting the District Attorney's office with the ORRS investigation. (A2100.0 AGR-2854.3) SUMMARY: The City has taken a number of steps to protect its interest and to identify all possible losses pertaining to the Orange Resource Recovery System (ORRS) investigation. As part of these efforts, the City hired a forensic accountant, a specialist in fraud, who has been working with the District Attorney for the past year and a half. FISCAL IMPACT: Unreserved fund balance is available in the Sanitation Fund to fund this appropriation. The City will seek reimbursement for these costs through current legal action. Discussion: Carole Walters (address on file), asked how much money has been spent on investigators, attorneys, etc. Will the Jeff Hambarian hearing take place in September? The City Manager explained the City will seek reimbursement of costs through the conviction process undertaken by the District Attorney's office. The City is not a part of the hearing process which is being handled through the County District Attorney's office. MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to appropriate $60,000 to Account No. 220-4031-426700 (Sanitation Fund - Police Detectives - Professional and Consultant Services). PAGE 2 CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) BIDS 3.6 Award of Bid No. 989-41 to Paulus Engineering, Inc.; Project No. D-130; 1998-99 Community Development Block Grant (CDBG) Walnut Avenue/Glassell Street Storm Drain Construction. (A2100.0 AGR-3308) SUMMARY: The construction improvements to be completed as part of this project include the installation of new reinforced concrete storm drain piping, catch basin inlets, and manhole junction structures along Walnut Avenue from Lemon to Glassell Streets, and on Glassell Street from Walnut to Lomita Avenues. The Project is funded by the Community Development Block Grant Program. ACTION: Waived as an inconsequential irregularity in the bid received from Paulus Engineering, Inc. that Disadvantaged Business Enterprises was not listed on the form provided in the specifications. Awarded a contract in the amount of $618,000.00 to Paulus Engineering, Inc. and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT: Funds are budgeted and available in the following accounts: 310- 9645-483400-5107 (Detail 16128) $284,414 (Community Development Block Grant); 310-9645-483400-5107 (Detail 16129) $178,854 (Community Development Block Grant); and 310-9645-483400-1819 $230,000 (Community Development Block Grant). 3.7 Award of Bid No. 990-01 to Sequel Contractors; Project No. SP-3239A; Tustin Street AHRP, Pavement Rehabilitation, Fairhaven to Chapman Avenues, Phase lA and lB. (A2100.0 AGR-3309) SUMMARY: The project will rehabilitate Tustin Street from Fairhaven Avenue to Chapman Avenue. The construction improvements to be completed as part of this project include the rehabilitation of the existing asphalt pavement surfacing, and the construction of concrete approach lanes at the intersection of Tustin Street and Chapman Avenue for northbound Tustin Street, and westbound Chapman Avenue. ACTION: Awarded a contract to Sequel Contractors in the amount of $967,152.00 and authorized the Mayor and City Clerk to execute on behalf of the City. Award of contract subject to Caltrans certification of subcontractor as a Disadvantaged Business Enterprise. FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and available in the following accounts: 262-5011-483300-4037 (Measure M) $400,000; 550-5011-483300-4037 (AHRP) $732,025; 272-5011-483300-4037 (Gas Tax 2105) $1,079,836. PAGE 3 CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) 3.8 Award of Bid No. 990-02 to R. J. Noble Company; Project No. SP-3239B; Tustin Street AHRP, Pavement Rehabilitation Chapman to Collins Avenues, Phase 2. (A2100.0 AGR-3310) SUMMARY: The project will rehabilitate Tustin Street from Chapman Avenue to Collins Avenue. The construction improvements to be completed as part of this project include the rehabilitation of the existing asphalt pavement surfacing, and the construction of concrete approach lanes at the intersection of Tustin Street and Chapman Avenue for southbound Tustin Street. ACTION: Awarded a contract to R. 1. Noble Company in the amount of $767,591.35 and authorized the Mayor and City Clerk to execute on behalf of the City. Award of contract subject to Caltrans certification of subcontractor as a Disadvantaged Business Enterprise. FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and available in the following accounts: 262-5011-483300-4037 (Measure M) 550-5011-483300-4037 (AHRP) 272-5011-483300-4037 (Gas Tax 2105) 3.9 CLAIMS (C3200.0) $ 400,000 $ 732,025 $1,079,836 The City Attorney recommends that the Orange City Council deny the following Claim(s) for damages: a. Catherine Keddie b. Billy Derham FISCAL IMPACT: None. ACTION: Denied claims for damages and referred to City Attorney and Adjuster. CONTRACTS (REMOVED AND HEARD SEPARATELY) 3.10 1999-00 Animal Control Services Contract with the County of Orange. (A2100.0 AGR-0135.L) SUMMARY: The City of Orange contracts with the County of Orange for animal control field and shelter services. The term of this annual renewal is July 1, 1999 through June 30, 2000. (Continued from July 27, 1999 Council meeting.) PAGE 4 CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: The adopted 1999-2000 budget includes a total of $260,232 in the General Fund in Police Department Account No. 100-4031-427100-2350 (Detectives - Contractual Services). This amount was based on previous annual contracts. Approval ofthe 1999-2000 contract amount of $335,400 will require an appropriation of $75,168 from General Fund unappropriated reserves. Note: Mayor pro tern Spurgeon abstained on this item due to a potential conflict with his employment and left the dais. Mayor Coontz reported this item was continued from the last meeting in order to address some of the questions from the public. The City did not feel it was getting the response that was needed in dealing with calls from residents regarding wildlife issues, i.e., coyotes, skunks, barking dogs, loose dogs, and irresponsible pet owners. Residents indicated they are unfamiliar with the process for filing a complaint and find it confusing, cumbersome, and time-consuming. These concerns were addressed in a meeting with Mark McDorman, Interim Director of Animal Control and Len Foster, Interim Director of Public Health, who have assured the City that they will make every effort to provide assistance to the residents. Sergeant Eric Grove of the Orange Police Department and a staff member from the City Manager's office work as liaisons with the County. The County has committed to making information readily available to the public concerning the process of addressing problems and nuisances, which will be posted on the County Animal Control Services web site and through brochures that can be sent to interested residents. The County has hired a new Public Information Officer who will be available to make presentations to the public when the need arises. MOTION - Mayor Coontz SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Alvarez ABSENT - Spurgeon Moved to appropriate $75,168 from General Fund Reserves to Account No. 100-4031- 427100-2350; approve the proposed contract; and authorize the Mayor and City Clerk to execute the contract on behalf of the City. FINDING OF PUBLIC CONVENIENCE AND NECESSITY 3.11 Request to determine whether the issuance of a new license to sell pre-packaged alcoholic beverages, from a retail store, serves the interest of Public Convenience and Necessity, as required for license approval by the State Alcoholic Beverage Control Board. (C3300.0 CUP-2286-98) PAGE 5 CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) SUMMARY: Rite Aid Corporation intends to construct a new retail store and pharmacy in a shopping center at the northwest corner of Main Street and La Veta Avenue. The Planning Commission reviewed and approved a request to sell pre-packaged beer, wine and distilled spirits through Conditional Use Permit 2249-98. City Council action is required by Section 23958.4 of the California Business and Professions Code. ACTION: Declared a finding of public convenience and necessity for authorization of a new retail license as required by California Department of Alcoholic Beverage Control. FISCAL IMP ACT: If approved, an undetermined amount of retail sales tax revenue may be generated by applicant sales. The applicant paid a filing fee to offset city personnel costs in processing this request. RATIFICATION OF DECLARATION OF EMERGENCY 3.12 Review the existence of a local emergency as declared on April 1, 1999. (Vista Royale Tract). ACTION: Approved. RESOLUTIONS 3.13 RESOLUTION NO. 9158 (HI200.0) A Resolution of the City Council of the City of Orange consenting to the designation of a portion of Newport Boulevard as a County Highway for road widening improvements. ACTION: Approved. 3.14 RESOLUTION NO. 9155 (A2100.0 AGR-3173) A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work improvement. Bid No. 989-11, Cathodic Protection Systems for Reservoir Nos. 1, lA and 2, American Construction and Supply, Inc. ACTION: Approved. PAGE 6 '------------. CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) 3.15 RESOLUTION NO. 9156 (S4000.S.4) A Resolution of the City Council of the City of Orange temporarily closing Batavia Street from LaVeta Avenue northerly to Palmyra Avenue, and removing on-street parking from both sides of Batavia Street from LaVeta Avenue to Palmyra Avenue from 10:30 a.m. to 1 :30 p.m. on September 11, 1999, for a special event ACTION: Approved. (REMOVED AND HEARD SEPARATELY) 3.16 RESOLUTION NO. 9160 (A4000.0 APP-456) A Resolution of the City Council of the City of Orange denying Appeal No. 456 and upholding the decision of the Planning Commission and the Community Development Director to allow a change of nonconforming use of a building located at 135 South Cambridge Street. Appeal No. 456 Appellant: Gary Meserve Action was taken by Council on July 27,1999 to deny Appeal No. 456. Note: Councilman Slater abstained on this item due to a property interest on S. Cambridge Street. Carole Walters, (address on file), commented on issues relative to the July 27th public hearing process relative to this item. Gary Meserve, 153 S. Cambridge, commented that the City should investigate and pursue its loss of revenues from the sale of goods at 135 S. Cambridge. The chronology of use for the property is erroneous. Mr. Meserve presented Council with what he called a "real chronology of the land use". If the new art gallery business is less than a grocery store, restaurant, and book store, can it ever go back to either of these uses? The City Manager responded the State Board of Equalization is the enforcement agency on sales tax.. The City Attorney explained once the use of the property has gone to a less intensive use, it can not go back to a more intensive use. MOTION - Murphy SECOND - Alvarez AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN-Slater ACTION: Approved. PAGE 7 CITY COUNCIL MINUTES August 10, 1999 3. CONSENT CALENDAR (Continued) 3.17 RESOLUTION NO. 9161 (A4000.0 APP-463) A Resolution of the City Council of the City of Orange denying Appeal No. 463 and upholding the decision of the Planning Commission to approve a Conditional Use Permit to allow the operation of a swap meet as a commercial recreation use in an industrial district, upon a 12.3 acre portion of a former drive-in theater site located northeast of Interstate 5 on State College Boulevard and addressed as 291 North State College Boulevard. Appeal No. 463 Conditional Use Permit No. 2290-99 Appellant: Mayor Joanne Coontz Applicant: Pacific Theatres Corporation/Pacific's Swap Meets & Marketplace Action was taken by Council on July 27,1999 to deny Appeal No. 463. ACTION: Approved. 3.18 RESOLUTION NO. 9162 (p1300.0.9) A Resolution of the City Council of the City of Orange authorizing the temporary closure of Atchison Street from Chapman Avenue north to Maple Avenue on August 12, 1999 from 5:00 P.M. to 9:00 P.M. for a special event. ACTION: Approved. MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Item Nos. 3.5, 3.10 and 3.16 were removed and heard separately. Mayor pro tern Spurgeon abstained on Item No. 3.10. Councilman Slater abstained on Item No. 3.16. The remainder of the Consent Calendar was approved as recommended. END OF CONSENT CALENDAR ******** 4. REPORTS FROM MAYOR COONTZ URGENT ITEM TO ADD TO CLOSED SESSION Mayor Coontz reported that based upon a meeting with the Orange County Sheriff yesterday, she became aware of a proposal to locate a future maximum security jail on a site within the City of Orange's sphere of influence. Several sites are being considered which are all close to the Eastern Transportation Corridor. It was the City's understanding that when the agreement was PAGE 8 L-__ CITY COUNCIL MINUTES August 10, 1999 4. REPORTS FROM MAYOR COONTZ (Continued) reached for the expansion of the Theo Lacy jail, after years of litigation and discussion, that this would be the City's final contribution to jails in Orange County. Mayor Coontz stated she does not want this to occur under her watch as Mayor. The residents of Orange will not look upon this proposal with any favor. MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that there is a need to take immediate action on this item and the issue arose subsequent to the posting ofthe agenda. 4.1 American Legion Post No. 132Neterans of Foreign Wars Post No. 7245- Proposal for a memorial honoring veterans at Santa Fe Depot Park. Tape 537 Jolm Whiteriver, 194 S. Pixley Street, on behalf of the Public Relations Chairman for American Legion Post No. 132, proposed that a veterans memorial be located at Santa Fe Depot Park. This site was selected because during World War I and II, servicemen departed and arrived at this location. This can be a very positive and cooperative endeavor between the veterans and the City. They have already begun to seek funds and asked Council to approve the idea; would like to break ground on Veterans Day, November 11, 1999, with a final completion date of November 11,2000. Mayor Coontz indicated all Councilmembers have been involved and have expressed an interest in a veterans memorial over a period of time. In response to Mayor Coontz, the City Manager indicated staff will work with the veterans on the project and provide a report back to Council. Councilman Slater commented on how he became involved in the effort for a memorial. The veterans have expressed interest in renaming Depot Park to Veterans Park, although this may not be feasible from a historical perspective. An idea may be to name the new park in East Orange Veteran's Park. Mayor Coontz commented several locations were considered, but the Depot Park seemed like the logical location because ofthe importance of the railroad in World War I and II. Councilman Alvarez asked the City Manager include in his report an accounting of what other memorials the City has to this service. Don Zweifel, 2110 Larkspur Drive, American Veterans member, expressed support for the memorial, suggesting it include the veterans names. PAGE 9 CITY COUNCIL MINUTES August 10, 1999 4. REPORTS FROM MAYOR COONTZ (Continued) MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to give American Legion Post No. 132Neterans of Foreign Wars Post No. 7245 the opportunity to pursue and present their idea to Council. 5. REPORTS FROM COUNCILMEMBERS Tape 896 5.1 Report from Councilman Alvarez concerning the EI Toro Reuse Planning Authority Trip to Washington DC. Councilman Alvarez reported on information he obtained from meeting with various representatives during his recent trip to Washington DC. An issue he felt of concern and importance to the City of Orange was the disclosure that the County of Orange was negotiating to some extent with the Justice Department in accepting all liability for the cleanup of the ground water beneath EI Toro airport. Congressman Cox recommended to him that the City watch how monies are being spent, either by the County, or other public agencies, but particularly how the toxic waste will be mitigated. Tom Wall, 2900 Park Newport #229, Newport Beach, commented on the importance of the City of Orange participating in the process. The County withdrew from ETRPA in 1994 as it was felt the County was responsible for long-term infrastructure planning, i.e. road, toll roads, freeway widening, and air transport in the future. The aviation demand issue is a regional issue. Mr. Wall further addressed the impact on Orange County residents ifEI Toro airport were not built. Don Saltarelli, 7603 E. Skylark, expressed support for the El Toro airport. Studies have been ongoing for thirty years or more on how adequate air transportation would be provided to the County of Orange. During this period of time the County population has more than tripled. Orange County statistics were cited to justify the need for air transportation in Orange County. Carole Walters, (address on file), thanked Councilman Alvarez for obtaining the information on the airport. Don Zweifel, 2110 Larkspur Drive, commented than everyone can benefit from an airport. Councilman Slater commented that OCCRA members will be visiting the ETRP A meetings on a rotating basis to get a dialogue going and to gather facts and information. Councilman Murphy commented on the benefits of an airport at El Toro, rather than a full expansion of Jolm Wayne Airport. PAGE 10 CITY COUNCIL MINUTES August 10, 1999 5. REPORTS FROM COUNCILMEMBERS (Continued) Mayor Coontz commented on the opportunities that an airport will have at El Toro, not only with its size, but with the positive planning which will include concerns of the residents and businesses. The County of Orange will not be the economically fruitful county that we see today if we don't move forward on this issue. Councilman Spurgeon commented the initiative next Spring will not only be the airport, but also j ails and landfills. Councilman Alvarez concluded that Federal government Record of Decision (ROD) will carry a lot of weight. It is unfortunate that this issue has split the County. It is hoped as time goes on the County will come back together and make a decision that all can accept. 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS Tape 1879 6.1 Report from the Investment Oversight Committee on the Investment Oversight Committee Quarterly Report for the quarter ending July 31,1999. (ORI800.0.27.16) The City Treasurer presented the report. MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and file. 6.2 Appoint Jan Mickelson to the Community Development Block Grant Committee to fill the vacancy created by Linda Zehner. Term to expire 1/2001. Tape 1947 MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Move to approve. 6.3 Request by members of the East Chapman Improvement Committee to disband. Mark Sandford, 10591 S. Meads Avenue, on behalf of the Orange Park Acres Board of Directors, requested Council maintain the Committee. Issues, developments, etc. that arise on East Chapman from Prospect to Rancho Santiago are important to the City of Orange and the people that live in the east part of the City. Individuals in the Orange Park Acres area would be interested in serving on the Committee. PAGE 11 CITY COUNCIL MINUTES August 10, 1999 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS (Continued) Mara Brandman, 7319 Equitation Way, suggested a new committee be created if Council accepts the request to disband the East Chapman Improvement Committee. Mayor Coontz explained the Committee was formed in 1977 by Councilman Jess Perez for architectural interests. It was noted that the changes occurring to Vons on East Chapman have been reviewed by the Committee. Bob Torres, 4525 Aqua Way, East Chapman Improvement Committee, introduced Committee Members Sylvia Caigoy, Jessie Ledesma and Nora Razo, indicating that his interest in serving on the Committee was for the El Modena area and building a good community. Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, requested this item be continued due to developments and changes on East Chapman, suggesting an advisory committee be formed comprised of people who live in the area. Mayor Coontz commented she would prefer disbanding the Committee and have the Planning Commission review the entire East Chapman Corridor. If it is then felt that a Committee is needed, Council could proceed in that direction. Councilman Slater expressed concern with continuing redevelopment on Chapman Avenue, in particular the SavOn Shopping Center with Rite Aid going in. A plan is needed for East Orange, in particular between Prospect and Crawford Canyon Road in which specific guidelines could then be provided to a developer. He is not in support of disbanding the Committee because of ongoing issues facing the EI Modena area. The Committee needs to take on a new emphasis and perspective. MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to continue to the August 24th meeting. In the meantime, research the idea of addressing the East Chapman Plan with the Planning Commission and other issues that are specific to the El Modena Committee. 6.4 Appointment of Scott Richmond as an active member to the Orange Park Acres Planning Committee (OPA Board appointee). (ORI800.0.26.1) Tape 2809 Mark Sandford, 10591 S. Meads Avenue, on behalf of the Orange Park Acres Board of Directors, thanked Council for the appointment of Scott Richmond. Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, expressed support for the recommended appointment. PAGE 12 '--~_~_._._...__m CITY COUNCIL MINUTES August 10, 1999 6. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS (Continued) MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve. 7. ADMINISTRATIVE REPORTS - None 8. REPORTS FROM CITY MANAGER - None 9. LEGAL AFFAIRS Tape 2960 9.1 ORDINANCE NO. 17-99 (ZI500.0 ZCG-1199-99) An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code and approving the reclassification of property located on the west side of Prospect Street between Walnut Avenue and Spring Street from R-O to R-3. Zone Change 1199-99 Applicant: Beazer Homes California, Inc. Action was taken by the Council on July 13, 1999 to approve Zone Change 1199-99 MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 17-99 be read by title only and same was approved and adopted by the preceding vote. 9.2 ORDINANCE NO. 18-99 (ZI500.0 ZCG-1200-99) An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code and approving the reclassification of property located on the west side of Prospect Street between Walnut Avenue and Spring Street from R-3 to R-O. Zone Change 1200-99 Applicant: Beazer Homes California, Inc. Action was taken by Council on July 13, 1999 to approve Zone Change 1200-99. MOTION - Alvarez SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez PAGE 13 CITY COUNCIL MINUTES August 10, 1999 9. LEGAL AFFAIRS (Continued) Moved that Ordinance No. 18-99 be read by title only and same was approved and adopted by the preceding vote. 9.3 ORDINANCE NO. 19-99 (A2500.0 ORD-19-99) An Ordinance of the City Council of the City of Orange amending Section 10.02.230 of Chapter 10.02 of the Orange Municipal Code pertaining to the definition of school days. MOTION- Slater SECOND- Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 19-99 be read by title only and same was set for second reading by the preceding vote. 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 6:06 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel - anticipated litigation. Significant exposure to litigation pursuant to Government Code Section 54956.9(b) (one potential case: Serrano/School District Mitigation Fees). (This item was not discussed). b. Conference with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation. Vista Royale HOA v. City of Orange, et aI., Orange County Superior Case No. 78 02 84 c. Conference with real property negotiator regarding the sale of real property pursuant to Government Code Section 54956.8: Property: 15+ acre vacant parcel generally located southwest of the intersection of Prospect Street and Walnut Avenue; Negotiating Parties: City of Orange Shepherd Academic, Inc.; Under Negotiation: Price and terms of payment. 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. PAGE 14 CITY COUNCIL MINUTES August 10, 1999 7:00 P.M. SESSION 12. PUBLIC COMMENTS Tape 3088 Barbara DeNiro, (address on file), referring to the East Chapman Improvement Committee discussion, asked if the City has had committees for other areas to seek good planning? Has the City made good use of the TSIP fees there? How will the trash collection and dumpster bin service fees that come directly from Waste Management be audited? Is this a separate contract? Ms. DeNiro does not fully understand the charges on the utility bill, indicating she will be in contact with the City Manager and City Attorney. Carole Walters, (address on file), commented that any decisions made in Closed Session should be announced publically. How many businesses in Orange pay less sales tax so they can advertise in the City? The City Manager explained there are redevelopment contracts with a few restaurants to help promote business. Mayor Coontz added the Redevelopment Agency developed an extensive set of criteria for anyone interested in redevelopment monies. Tape 3283 13.1 TRANSPORTATION SYSTEM IMPROVEMENT PROGRAM (TSIP); CITY OF ORANGE 13. PUBLIC HEARINGS Time set for a public hearing to consider the adoption of a resolution updating the fee structure for the City's Transportation System Improvement Program. The fee is assessed against new development projects in the City for the purpose of funding transportation system improvements throughout the City. The Director of Public Works reported the Transportation System Improvement Program established in 1988 provides for the payment of fees by developers to fund ,in part, the cost of transportation improvements that are needed as a result of growth and development within the City. Approximately 50% of the costs of the needed improvements are recovered from the transportation fees. The balance of the improvements are funded from Gas Tax, Measure M, and other City resources. The proposed increase in fees is approximately 7.89%. The fees were last adjusted approximately two years ago. The adjustment is based upon a Construction Cost Index for highway construction items that are prepared and maintained by Caltrans. It is only the expansion of the use that is subject to the fee. If a building is demolished and a new building constructed, it would only be the intensification of the use measured by the additional square footage or by the additional traffic generation that would be subject to the fee proposal. Any building that was in existence on January 1, 1988 and demolished is eligible for that kind of a credit. Cities in Orange County are required to have Transportation System Improvement Fees in order to participate in the competitive aspects of the Measure M Program. The fees vary from jurisdiction to jurisdiction reflecting the ultimate development anticipated in the community and the level of transportation facilities needed to serve the future development. PAGE 15 CITY COUNCIL MINUTES August 10, 1999 13. PUBLIC HEARINGS (Continued) In response to Mayor pro tem Spurgeon, the Director of Public Works explained the fee is for new residential units. Room additions or remodeling are specifically exempt from any fees under the Program. Councilman Alvarez asked the reason for the rate increase? The Director of Public Works explained the proposed adjustment is to keep pace with increasing construction costs and to ensure that the amount of fees that are collected will fund the projects in the program, which extends to the year 2009. It is anticipated periodic adjustments will need to be made. The fees do not include any allowance for the acquisition of right-of-way. Councilman Murphy asked if the City has any fee comparisons with neighboring communities? The Director of Public Works responded no recent comparisons have been done. Mayor Coontz asked if other cities work on the same price index for selected highway construction items? The Director of Public Works indicated that are several different indices that could be used. This index most closely matches the types of projects the City has in the Program. MAYOR COONTZ OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. RESOLUTION NO. 9134 A Resolution of the City Council of the City of Orange updating fees for the Transportation Systems Improvement Program and amending and revising the Master Schedule of Fees and Charges as authorized by Orange Municipal Code Chapter 3.10 pertaining to said fees. MOTION - Spurgeon SECOND - Mayor Coontz Councilman Murphy commented he would be voting no on the motion because he would like to see a fee comparison with other cities in the area. Councilman Slater concurred, suggesting the item be continued to another meeting. Mayor Coontz indicated a comparison should be made with cities that have a comparable level of development activities. MOTION WAS WITHDRAWN BY MAYOR PRO TEM SPURGEON. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to continue to the September 14th meeting to allow staff to come back with some preliminary figures. PAGE 16 CITY COUNCIL MINUTES 14. PLANNING AND ENVIRONMENT - None 15. ADJOURNMENT MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez The City Council adjourned at 7:32 p.m dw/dA"-li~d: CASSANDRA J. THCART, CMC CITYCL 7 JOANNE COONTZ MAYOR August 10, 1999 PAGE 17