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01-27-1998 Council MinutesAPPROVED BY THE CITY COUNCIL ON FEBRUARY 10, 1998 CITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA January 27, 1998 The City Council of the City of Orange, California convened on January 27, 1998 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 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Murphy 1.2 ROLL CALL PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - None 1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz made the following announcements:The Walmart store at the Mall of Orange opened on Monday, January 26, 1998.The prestigious William T. Glassell award, given by the Orange Community Historical Society, was awarded on January 22, 1998 to Bill Austin.A letter was received from Orange Elderly Services on behalf of the seniors, participants, and staff at the Orange Senior Center extending their gratitude and thanks for the beautiful remodel and renovation of the Senior Center.The Orange County Narcotics Officers' Association presented the Orange Police Department recently with a plaque honoring the narcotics unit as Unit of the Year in recognition of their excellence in law enforcement in the County of Orange. Sargent Brad Davis explained the work of the narcotic unit detectives and recognized members of the unit and the department secretary.Arlene Miner, 384 N. Shattuck Place, Director, and Helen Viviano, 1442 Albion, President,Friends of the Orange Public Library, presented a check for $10,000 to the City from the sale of used books. Friends of the Orange Public Library volunteers were acknowledged. (C2500.I)TheCity Manager presented Employee Recognition Service Awards to Bob Skinner, Jerry Carter, John Godlewski, Jim Donovan, Chris Huddleston, John Richard, Tom Groseclose, and Adrian Montoya. ( C2500.JA.18)RichardCarlson, 159 S. Cambridge, thanked the narcotic officers for removing the pay phone in front ofP. J. Mead's.PAGE 1 I~I! 1 III CITY COUNCIL MINUTES January 27, 1998 1.4 PROCLAMATIONS - None 2. CONSENT CALENDAR Tape 555 2. 1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of January 27, 1998 at Orange Civic Center, Taft Branch Library at 740 E. Taft Avenue, 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.2. 2Request Council confirmation of warrant registers dated January 8 and 15, 1998.ACTION: Approved.REMOVED AND HEARD SEPARATELY)2. 3Request approval of City Council Minutes, Special Meeting of January 6, 1998 and Regular Meeting of January 13, 1998.Mayor pro tem Slater requested that the words "similar to costs charged" be added for clarification to the minutes of January 13, 1998, Page 10, Item No. 4.1, Line 11.MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Move to approve the City Council Minutes, Special Meeting January 6, 1998 as presented, and Regular Meeting, January 13, 1998, as amended.2.4 Consideration to waivereading in full of all ordinances on the Agenda.ACTION: Approved.AGREEMENTS 2. 5 Request Council approve Second Amendment to consultant agreement with Purkiss-Rose-RSI in the amount of $29,182 for additional architectural services for McPherson Athletic Facility.A2100.0 AGR-2722)FISCAL IMPACT: Sufficient funds are budgeted in the following accounts:510- 7021-4811 03-0143 (Ballfield Relocation): $ 674,028 510-7021-485100- 0143 (Ballfield Relocation): 485.962 1,159,990 PAGE 2 1111 II! I CITY COUNCIL MINUTES January 27, 1998 2. CONSENT CALENDAR (Continued) ACTION: Authorized Mayor and City Clerk to execute on behalf of the City. 2.6 Request Council approve First Amendment to consultant agreement with Robert R. Coffee, Architect and Associates in the amount of $7,500 for the Main Library Renovation. (A2100.0 AGR-2885. 1)FISCAL IMP ACT: Sufficient funds are budgeted in Account No. 500- 7028-481105- 9900 (Main Library Renovation).ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.7 Request Council approve Agreement No. 2790, Amendment No.1 with Robert Bein, William Frost & Associates in the amount of $59,395 to provide professional services for preparation of a Project Study Report (PSR) for SR-22 Freeway/City Drive Interchange modification. (A2100.0 AGR-2790.1 )FISCAL IMPACT: Sufficient funds are available in Account No. 284-5011- 483300-3823 (SR-22/City Dr. Ramp Feasibility Study).ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe City.CLAIMS REMOVED AND HEARD SEP ARA TEL Y) 2.8 CLAIMS FOR DAMAGES FROM: a. Robert Audiss b. Richard Carlson c. Rafael Fraga d. Gary Meserve e. J.B.L. Enterprises, Inc.f. Shelton & La Monica Properties ( No.1)g. Shelton & La Monica Properties (No.2)h. Eric Pittman FISCAL IMPACT: None.Richard Carlson, 159 S. Cambridge Street, urged the City Council to deny his claim. This enables him to go to court and show his four years of evidence on the illegal change of non-conforming use ofP. J. Meads, located at 135 S. Cambridge. He has been damaged financially and unable to sell his home. Persons have said he has a parking CITY COUNCIL MINUTES January 27, 1998 2. CONSENT CALENDAR (Continued) NOTE: At the advice of the City Attorney, Mayor pro tem Slater abstained on this item due to a property interest on Cambridge Street. MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN- Slater Moved to deny claims for damages and refer to City Attorney and Adjuster. (C3200.0)CONTRACTS 2.9 Request Council approve Contract Change Order No.1 in the amount of $6,362 with C. A.Granger Construction Company for Senior Citizen Center improvements. Bid No. 978-10 A2100.0 AGR-2935)FISCAL IMPACT: Sufficient funds are budgeted in Account No. 310-6057- 481200-1601 CDBG-Senior Citizens Building) $78, 000 ACTION: Approved.DONATION REMOVED AND HEARD SEP ARA TEL Y)2.10 Request Council accept the donation of six (6) electric bicycles from Southern California Edison to be used for patrol purposes by the Orange Police Department. (C2500.K)Acting Police Chief Dean Richards displayed one of the donated bicycles and explained its operation. The Police Department plans to use the bicycles for enforcement at the Orange Mills.Gaddi Vasquez, representing Southern California Edison, explained how the bicycles are distributed to law enforcement agencies and presented six EV Warrior bicycles to the City. FISCAL IMPACT: None. MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to accept the donation. PAGE 4 II I~ 1m I CITY COUNCIL MINUTES January 27, 1998 2. CONSENT CALENDAR (Continued) FINANCIAL REPORTS 2.11 Request Council approve the Annual Financial Reports for Development Impact Fees. C2500.J.l.0.2) FISCAL IMPACT: None. ACTION: Received and filed. FUND TRANSFER 2.12 Request Council approve fund transfer for minor supplemental expenses for seismic retrofit of three bridges on the Santa Ana River in the City of Orange: Garden Grove Blvd. Bridge No. ORA 55C-0046, Orangewood Ave. Bridge No. ORA 55C-0050, Taft Ave. (Ball Rd.) Bridge No.ORA 55C-0159 as designated by the Federal Highway Administration and the State of California. (C2500.M)FISCAL IMPACT: Funds are available in Account No. 272-5011-483300-3239 (Bridge Seismic Retrofit) to be transferred to Account No. 272-5011- 483300-3239 ( Bridge Seismic Retrofit) -9,000.00. ACTION: Approved.RESOLUTIONS 2.13 RESOLUTION NO. 8876 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 978-20; SP 3200; Austin Court; demolition and right of way clearance at 495 South Olive Street, Orange. (A2100.0 AGR- 2956)ACTION: Approved.REMOVED AND HEARD SEP ARA TEL Y)2.14 RESOLUTION NO. 8873 A Resolution of the City Council of the City of Orange amending a Deferred CompensationPlan and Trust with ICMA Retirement Corporation. (C2500.J.l.2)Mayor Coontz commented the Resolution clearly outlines the recommended action, but stressed the importance of the agenda and staff report also providing clear information for CITY COUNCIL MINUTES January 27, 1998 2. CONSENT CALENDAR (Continued) MOTION - Mayor Coontz SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve. 2.15 RESOLUTION NO. 8874 A Resolution of the City Council of the City of Orange adopting a Deferred Compensation Plan and Trust with Great Western Bank. (C2500.J.1.2)ACTION: Approved.SURPLUS PROPERTY 2. 16 Request Council approve authorization of designated personnel to acquire federal surplus property from the California State Agency for surplus property. (C2500.J.3)FISCAL IMPACT: None ACTION: Approved.MOTION - Spurgeon SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Items Nos. 2.3, 2.8, 2.10, and 2.14 were removed and heard separately. Mayor pro tern Slater abstained on Item No. 2.8. The remainder of the Consent Calendar was approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ Tape 994 3.1 Questions of liability, renovation, reuse or disposition of the Ainsworth House.ORI800.0.15.2)Mayor Coontz reported the Ainsworth House, located one block east of City Hall, was purchased during the period of the 1976 Nationwide Bicentennial celebration. The home had special historic significance to the City of Orange, having been the residence of an early mayor. It was the first building in Orange to be recognized in the National Register of Historic Places. The Ainsworth Commission was created because of the great interest in local history at the time. A docent program was established and young people from the Orange Unified School District composed most of the visiting public. The successful PAGE 6 II~ n lIlT I CITY COUNCIL MINUTES January 27, 1998 3. REPORTS FROM MAYOR COONTZ (Continued) program also included tours of the Plaza area, and other historic landmarks. With school district cut- backs in field trip bussing and City budget cut-backs, the activities were abandoned.Today, more than twenty years later, the house and grounds are in need of extensive repair. City staff has indicated the estimated costs would be $90,000, and there are no funds budgeted for this purpose. In the meantime, at least two dozen non-profit groups and individual business owners have approached the city to use the property, which has limited parking, is zoned residential, and has liability problems because of the condition of the house.After discussion with the City Manager and one other Councilmember, the Mayor has asked that each member of the Council submit suggestions to her of possible appointees to a five- member committee to review the questions of liability, renovation, re-use or disposition of the Ainsworth House. The Committee would make recommendations to the City Council on what actions should be taken. It was suggested a building official or someone with building experience be one ofthe individuals appointed by the City Manager, plus a representative from Community Services, which currently oversees the house.A brief overview was provided to Council of similar city-owned historic structures located in the City of Monterey and their experience with same.Fred Gillett, 205 E. Palmyra, member of the Old Towne Preservation Association, commented the Association is interested in the Ainsworth House for historical preservation purposes for the City, and volunteered himself, or a member of the Association, to serve on the Committee. MOTION -Mayor Coontz SECOND -Slater AYES -Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Council provide Mayor Coontz with names of possible appointees to a five-member committee and the City Manager provide the names for the appointed staff committee members. The Committee would report back to the City Council with their recommendations. 4. REPORTS FROM COUNCILMEMBERS - None 5.REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS Tape 1150 5.1 Designate Rick Otto, Assistant to the City Manager, as the City's alternate voting board member to the Metro Cities Fire Authority. ( OC1300.A)MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve.6. REPORTS FROM CITY MANAGER - None PAGE 7 Ti: r I i- CITY COUNCIL MINUTES January 27, 1998 7.ADMINISTRATIVE REPORTS Tape 1180 7.1 Report from the Community Development Director requesting approval of special events/pageants that will close the Plaza public streets during 1998. (P1300.0.9) NOTE: Councilman Alvarez abstained on the item due to a property interest and stepped down from the dais. The Director of Community Development explained the special events are only those that close the public street and Plaza to through traffic and reviewed the events and dates. All departments will be included in the planning process for each event. The Council will be advised prior to each event and provided with follow-up memos outlining the activity and problems/successes. The listing of events was sent to all property owners and hand delivered to each address within the eight block area downtown.RESOLUTION NO. 8872 A Resolution of the City Council of the City of Orange temporarily closing sections of Glassell Street and Chapman Avenue immediately abutting the Plaza area of the Downtown Business District for special events in 1998.MOTION - Murphy SECOND - Slater AYES -Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to approve the events and dates as listed in Resolution No. 8872 that will occur during 1998 and Resolution No. 8872 as introduced, be adopted and same was passed and adopted by the preceding vote.7.2 Report from Doy Henley, Randy Bosch and Bill Cathcart concerning the long range Library Master Plan for parking and the Library facility. (C2500. I)Randy Bosch reported upon completion of the review by the study committee, the conceptual review concluded that the Bank of America property can accommodate all the parking that would be required to support a new Main Library with ancillary uses. Access would be from a conversion of portions of Center Street to conserve and preserve neighborhood life on Center Street north of the library, as well as provide a new main access entrance and address for the library. This would be in the form of a parking structure that could be accommodated within the overall funding of the library on an economical basis.The site provides the opportunity for retail or community activities on the Chapman Avenue frontage to assist in a design that would be complimentary to the Royer Mansion, connect to downtown Orange, and draw the library closer to the Plaza core. Retail uses could help offset the costs of the parking structure.The property between Center Street and Shaffer Street, including the existing Library site, Edwards House and the Holland building, could accommodate a library footprint of about 33,000 square feet, not including landscape setbacks, to provide adequate separation and protection of houses to the north, and to set up a good streetscape that connects to the lands to the east and south. Reading courtyards,delivery areas, and other amenities would make an excellent library for the City. A three- level library,including courtyards but not setback spaces, could be designed up to 99,000 square feet. PAGE 8 i,ll: Ii CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) Implementation is a key concern. Three options would be: 1) Move the Main Library offsite as soon as possible, into leased facilities. A large cost goes along with this. Finding the facilities, improving them, as well as the cost of several moves must be taken into account; 2) Continue use of the existing Library without improvements. The study committee finds this not an acceptable option because of the constraints on meeting the needs of patrons, the poor conditions under which staffhas to operate, and the life safety and health concerns. Over the time necessary to raise funds and prepare for construction of a new Main Library, the City could spend significant funds on repairs that would be necessary i.e. roofing, water leaks, air conditioning, safety improvements, etc.; or 3) Perform the interim improvements. The site should be cleared at the time of construction of a new Main Library, rather than trying to phase around the existing facility. Keeping the library in place as an interim facility could be a sound move for the City, given that it may be the least cost option, keeps services intact, and recognizes that several years will be necessary to do a full fundraising effort for the new library. Mr. Bosch expressed the committees interest and enthusiasm in continuing to work with the Council as a citizens ad hoc group and to interface with the library foundation. Mayor Coontz acknowledged the contributions made by Randy Bosch, the City's Planning Commission Chairman and well-known architect; Bill Cathcart, a landscape and space planning architect well known for his contributions to the community; and Doy Henley, a long-time successful Orange County businessman who has received recognition through his efforts on major fundraising and facility planning projects for not-for-profit institutions. The group contribution was even more valuable as they listened to the Council, the staff, and the community. Councilman Murphy recognized the committee members and the benefits the City will derive from their volunteer efforts. Councilman Spurgeon expressed his appreciation and confidence in the committee members. Councilman Alvarez commented he looks forward to the efforts of the Committee in facing the challenges ahead.MOTION - Mayor Coontz SECOND -Murphy AYES -Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to formally designate the volunteer group as an Ad Hoc Facility Advisory Planning Committee for any future expansion and development of new library facilities with the goal of attaining a high quality facility at reasonable costs.7.3 Report fromthe Director of Community/Library Services on theMain Library Renovation. ( C2500.I)Tape 1770 Mayor Coontz reported the actions taken by the Council at the December 9, 1997 were as follows:1. To address the necessary issues regarding the basic needs of the library remodeling project proposal,including all safety ADA requirements, reallocation of space, replacement of heating/air conditioning system, lighting improvements, and the inclusion of the Information Technology Center (ITC) in an amount of $1. 5 million.PAGE 9 r Iii CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) 2. Council to make the first large contribution to the Library Foundation for the new main library. A motion was made to commit a substantial amount of dollars yearly to the new library.. 3. The archives be moved to the basement of the Community Services Department as a permanent collection, utilizing monies donated for that purpose from the Centennial Commission and the Friends of the Library and any other donation for that purpose. Mayor Coontz commented the issue today is a report from the Facility Planning Committee and the Community Services' Departments efforts to keep the expenditures under the $1.5 million targeted by the City Council. The City Manager recommended the Information Technology Center (IT C) portion of the main report, the PC's in the amount of $12,500, and the HP hardware in the amount of $64,110, be separated out from add-alternatives section of the report, to allow Councilman Murphy to participate in the discussion of the issues and avoid a conflict of interest.The Director of Community/Library Services presented the report. The recommendation is to approve funding for the Main Library Remodel project in the amount of$I,576,974. The conceptual plan has not changed. The add-alternatives included in the report exceed the proposed funding amount of 1, 576,974.The major features of the plan are:1. Relocation and new theme for the Children' s area.2. Creation of an Information Technology Center.3. Redesign and relocation of reference desk for better supervision and service of the Library.4. Elimination of centralized offices and create decentralized staff work area.5. Relocation of reference area, and fiction and non-fiction stacks.6. Exchange community room for a new conference room.7. Enhance aesthetics of ceiling to create a better design element and improve lighting.8. New signage and graphics to enhance patron needs and more modern design.9. New entry with the elimination of the existing wall and landscape improvements to enhance the entrance area.10. Restroom improvements and aisles to meet ADA requirements.Adrienne Gladson, 700 E. Lake Drive, #97, President of the Orange Community Historical Society,distributed a letter to Council from the Society lending their support for the remodel of the Main Library facility and expressing their interest in moving the local history collection to the Bank of America site.Carolyn Cavecche, 275 N. Shaffer Street, representing the Orange Public Library Board of Trustees,thanked the Council for their support of the renovation and the purchase of the Bank of America building. The Board is concerned with the lowering of the contingency amount from 20% to 10%. It is hoped that Council will consider the add-alternatives outlined in the report, as it is felt that some of the alternatives are a necessity.PAGE 10 ji CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) Mayor Coontz commented on the importance of focusing on the library facility at this time. The best time to look at the alternatives may be once the bids are received for the project, as they may be less than the projected cost. In response to Council's questions: Robert Coffee, architect for the project, explained one quote for the shelving was received from a gentleman who has been working with the library for several years. His cost to disassemble, store, and re-install the existing shelving would be $65,100. To disassemble, paint, store, and re- install the existing shelving would be $93,000. To purchase new book stacks with metal end panelswas $ 98,400.Mr. Coffee recommended the purchase of new basic shelving. With the new design, the shelving would be down about 17% from what currently exists. The prices were based on the new space plan and a quantification of the space plan, the height and length of the shelving units. The space plan took the existing furniture and put it back in place. New furniture included a new conference table, a few reader seats and tables, and one or two new study carrels.The Director of CommunitylLibrary Services explained the new shelving would include the total cost to purchase and install, totaling approximately $38,000. The City Manager clarified the shelving cost of 40,000 in the add-alternatives is for all new shelving.Richard Carlson, 159 S. Cambridge, asked if ADA requirements have to be met when plans are submitted on all remodels?The City Attorney clarified that ADA requirements only apply to public facilities and public programs.It does not apply to private entities.Mayor Coontz commented the City Manager has recommended Council separate out the issue of the Information Technology Center from the main body of the Library remodel report, and that Council also separate out the section under Library Additional Alternatives regarding Personal Computer' s in the amount of $12,500 and HP hardware in the amount of $64,110 in order that Councilman Murphy can participate in the discussion of the issues and avoid a conflict of interest.MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to accept the recommendations of the Community Services Department to renovate the library for a total of$I,354,889 (includes incremental cost of shelving of $38,000). NOTE: Councilman Murphy commented this is money well-spent and suggested that other furniture related items be brought back to Council as a contingency item for the following reasons: 1) after bids PAGE 11 Ti~ !.~ CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) are received, and hard costs for remodeling will be known, and 2) input to be provided from a new building perspective is needed because the reuse issue will have to be taken into consideration. MOTION - Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon NOES - Alvarez Moved that:All expenditure issues approved today, plus any potential additions return to Council for final decision after receipt of bids, review and recommendation by the City Manager, with any additions to be considered in light of the recommendations made by the Ad Hoc Committee.Direct the City Manager to look into the incorporation of furniture expenditures into next year's operating budget, if not appropriate to purchase at this time, keeping in mind the applicability of reuse of the furniture to the new building.A building department representative be assigned to this project.MINUTE ORDER: Councilman Murphy - " Anything we don't do from a furniture perspective in terms of this contingency will be looked at as a budget item for next year, taking those same considerations into account."MINUTE ORDER: Councilman Alvarez explained his no vote - "I think to the public it appears as more of a piecemeal project and I would rather see us just launch this and get going because of some of the issues that Mr. Coffee mentioned in terms of timing. The more we begin to drag this on, the more we are going to drag when we reopen this thing. And, I would rather have seen us move ahead."NOTE: Mayor Coontz explained the $64, 110 comes out of operational budget savings and is not related to the $1.5 million goal that Council set.Mayor pro tern Slater asked that the City Manager provide a clear picture of what the City's Unappropriated General Reserves are when the bids come back to Council for final approval, so a determination can be made relative to seed money, which will hopefully be approximately $1.1 million to be used towards the foundation and the start of a new library.Mayor Coontz commented on the importance of the City finally reaching this goal because a good library is an indication of a good city. Members of the Library Board in attendance at the meeting were recognized.NOTE: Council discussed the Information Technology Center portion of the report at this time.Councilman Murphy left the dais on this item due to a conflict as a result of his employment.PAGE 12 Iill II i:il I:lIT I CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) MOTION - Mayor Coontz SECOND - Slater AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to cover the request for the Information Technology Center (ITC) in the amount of $260,085,plus an additional $64, 110 for the Hewlett Packard hardware identified in the add-alternatives of the staff report. The $ 64,110 comes out of operational budget savings and is not related to the $1.5 million goal that was set.Councilman Murphy returned to the dais.7.4 Treasurer' sReport for the period ending December 31,1997. (C2500.F)MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and file.7. 5 Report from the Finance Director regarding the refunding of the City's Certificates of Participation. (A2100.0 AGR-2975, 2976, 2977)Tape 3512 The Finance Director reported the Resolution authorizes the hiring of the firms of Best, Best & Krieger LLP as Bond Counsel, Richards, Watson & Gershon as Disclosure Counsel, and Fieldman, Rolapp &Associates as Financial Advisor for the proposed refunding of the City's 1989 Certificates of Participation. The fees of the financing team will be paid from the cost of issuance from the bonds. If the City does not go through with the bonds, there would not be an outflow of City funds.RESOLUTION NO. 8877 A Resolution of the City Council of the City of Orange authorizing the hiring of firms and professionals for the proposed issuance of the City's 1998 Refunding Certificates of Participation.MOTION - Alvarez SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Resolution No. 8877, as introduced, be adopted and same was passed and adopted by the preceding vote.PAGE 13 J il~ II II I CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) 7.6 Report from the Director of CommunitylLibrary Services requesting Council approve Financial Assistance Agreement No. D97-070 in an amount not to exceed $2,713,000 between the City and County of Orange for the McPherson Athletic Facility, authorizing the Mayor and City Clerk to execute on behalf ofthe City. (A2100.0 AGR-2974) Tape 3614 FISCAL IMP ACT: Approval of this agreement secures the funding for the McPherson Athletic Facility Improvements.The Directorof Community/Library Services reported this is the final phase of the McPherson project.Construction is expected to begin in April, 1998 and be completed by December, 1998. The County will be provided with monthly reports and a final account detailing the expenditures of the project.COUNCILMAN SPURGEON COMMENTED FOR THE RECORD: "Mr. Attorney. Just for the record. Prior to myself participating or voting on this. I am a County employee and a staffer in the 4th District which this includes. Although I heretofore have not had any roles in negotiations with the County staff in terms of this money, Ijust wanted to make sure that I was able to vote on this, or should I abstain?"The City Attorney responded Councilman Spurgeon would be able to vote because the salary from a public agency is not considered income under conflict of interest laws.Mayor Coontz asked when recognition will be given to the County and the Orange Unified School Board for their cooperation and participation in this project? The Director of Community/Library Services responded that nothing has officially been planned yet. The youth groups and neighbors will also be included when the recognition is given.MOTION - Mayor Coontz SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve and authorize the Mayor and City Clerk to execute on behalf of the City.7. 7 Report from the City Attorney requesting Council appropriate $150,000 to Account No.100- 0301-426100 (Legal Services) to pay for current and anticipated contract legal services and amend the City's current agreement with Pillsbury, Madison & Sutro. (A2100.0AGR- 2765.2)FISCAL IMPACT: Sufficient funds are available in the general fund unreserved fund balance to cover the appropriation.The City Attorney reported the appropriation is required exclusively for the City's ongoing lawsuit against KPMG Peat Marwick. The current billing is at $ 130,000. PAGE 14 r.l1[t III1 CITY COUNCIL MINUTES January 27, 1998 7. ADMINISTRATIVE REPORTS (Continued) MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Approved to appropriation $ 150,000 to Account No. 100-0301-42600 (Legal Services) to pay for current and anticipated contract legal services and authorize the Mayor to execute an amendment to the City's current contract with Pillsbury, Madison & Sutro. The proposed amendment will eliminate the "not to exceed amount," but all payments will be subject to the approval of the City Attorney.8. LEGAL AFFAIRS Tape 3820 8. 1 ORDINANCE NO. 2-98 An Ordinance of the City Council of the City of Orange amending Chapter 17 of the Orange Municipal Code relating to signs and abatement of non-conforming signs. (A2500.0 Signs)Mayor pro tern Slater noted a typographical error in the Ordinance. In response to his question relative to staffs enforcement of the removal of illegal signs, the Director of Community Development explained a substantial amount of time has been spent by staff and volunteers in enforcing the A-frame and banner regulations. The Code Enforcement and Public Works staff, with the assistance of volunteers, have been removing the temporary and promotional signs posted on poles and public places as they have the opportunity. Volunteers that are interested should contact the Building Division of the Community Development Department at ( 714) 744-7220.Mayor Coontz asked what the training program involves, noting it is extremely important when dealing with the public and representing the City. The Director of Community Development explained the current volunteers have come through the Police Department's volunteer program. Mayor Coontz directed the City Manager to address the issue of training of volunteers in public relations. The Director of Community Development will provide Mayor Coontz with information on who approves some of the signs in the City.The City Attorney explained the ordinance attempts to make the individuals responsible for making and posting the signs, or those benefiting from the signs, i.e. paying to have the signs put up, responsible for the City's costs of abatement. MOTION - Spurgeon SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 2-98 be read by title only, as amended, and same was set for second reading by the preceding vote.PAGE 15 r.. '. ~. CITY COUNCIL MINUTES January 27, 1998 8. LEGAL AFFAIRS (Continued) 8.2 ORDINANCE NO. 3- 98 An Ordinance of the City Council of the City of Orange amending Sections 5.36.060 and 9.12.010 of the Orange Municipal Code relating to arcade games. (A2500.0 Amusement Devices, Coin Operated)MOTION - Slater SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 3-98 be read by title only and same was set for second reading by the preceding vote.9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS Carole Walters, 534 N. Shaffer, expressed concern with the house sold by Jeff Hambarian. An article in the paper addressed permit problems. Did any City inspectors go out when the house was sold? Could this cause the City a lawsuit? The inspector was doing his job - people shouldn't be upset with him.Ms. Walters received a call from a resident wanting to know why the City could not find permits for the Jeff Hambarian property in Orange. Councilman Alvarez was asked what he thought of the comment in the Sunday L.A. Times.The City Attorney explained the subsequent buyers to the property wrote a letter to the City and asked one of the building inspectors to come out. They alleged that various things were not permitted and there were also structural defects in one of the decking areas. The building inspector who went out to the property agreed there was a structural defect. However, permits could not be found in the City files for some changes that were made to the house. The defects were brought to the attention of Jeff Hambarian, who came in with some plans which showed a lot of the things the City said were not permitted had been approved in the field by the field inspectors. This was the practice when the house was rebuilt in 1982. The building inspector did find there still was structural defects in the decking and noted that to the subsequent owners' lawyers. The City views this as a private matter between a seller and purchaser of a home, indicating he did not see any liability to the City. Some permits were subsequently found but it is not believed permits were issued for every change. The City's real interest is in whether it was built to code and there was a finding of this. There were things inspected in the field and approved on the original plans.Councilman Alvarez responded he received calls on the Sunday L.A. Times article and shares their same concerns. The issue of behavior of the building inspectors is a real concern. It seems that Jeff Hambarian's behavior is similar to what we heard in the trash scandal in that they tend to come into City Hall demanding things quite differently than the rest of the public.PAGE 16 i !rlil ! I. III! 1 CITY COUNCIL MINUTES January 27, 1998 10. ORAL PRESENTATIONS (Continued) The City Attorney said it would be best if Council did not comment on whether Mr. Hambarian engaged in fraud in the trash issue. It is a private matter and there could be some pending litigation. Based upon his review so far, it has not been found that the building inspector did anything wrong. Richard Carlson, 159 S. Cambridge, expressed concern with City staff doing their jobs relative to permits and inspections. Mr. Carlson referred to the City Attorney's quote in the L.A. Times article regarding the City Manager engaging in conflicting activities to benefit others, including friends or family, and asked the City Attorney if he feels it is appropriate behavior for the City Manager? Is it ethical or legal? Mr. Carlson asked Mayor pro tern Slater for his opinion of the parking situation on Cambridge Street near his residence. The City Attorney replied this was not what the statement said. There was a report given to the District Attorney that said there were apparently some conflicts of interests and that City Manager Rudat may have made or participated in the making of decisions which could have had a financial effect on Jeff Hamb ari an. The article did not address his conclusions in the report that it was all inadvertent. None of the decisions made or not made by Mr. Rudat were different than those that were suggested by staff. None of the decisions appeared to benefit JeffHambarian. Mayor Coontz commented this was a document that was prepared as a confidential document to the City Council. All confidential documents are not to be shared with the public. This is a situation where someone has shared a confidential document with the public and the press. Mayor pro tern Slater responded he spoke only as a private citizen at the Traffic Commission. He could not comment further on the issue at this time. His tenants on Cambridge Street have lived there for approximately 20 years. They were not threatened they could not speak on the parking issue. NOTE: The City Council recessed at 6:54 p.m. and reconvened at 7:10 p.m. NOTE: Closed Session items were heard at the end of the 7:00 p.m. Session. URGENT ITEM MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that the following Closed Session item arose subsequent to the posting of the agenda and there is a need to take immediate action.Bonneville vs. City of Orange, Orange County Superior Court Case No. 751340 PAGE 17 1Iill if IIf I CITY COUNCIL MINUTES January 27, 1998 11. RECESS The City Council recessed at 8:10 p.m. to a Closed Session for the following purposes: a. Conference with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation.City of Orange v. George S. Walker, et aI., Orange County Superior Court Case No. 78 33 77 b. Conference with labor Negotiator pursuant to Government Code Section 54957.6:City Negotiator: Personnel Director Steven Pham; Employee Organization: Top Management, Police Management, Orange City Firefighters, Fire Management 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.12. 1 INVOCATION Reverend Tom Reinhart-Marean, First United Methodist 12.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Murphy 12.3 ANNOUNCEMENTS - None 12. 4 INTRODUCTIONS - None 12.5 PROCLAMATIONS - None 12.6 PRESENTATIONS - None 13. PUBLIC HEARINGS 13. 1 AIRCON ENERGY SERVICES, INC., CITY OF ORANGE:Tape 4900 Time set for a public hearing on petition by the City of Orange to consider entering into an energy conservation contract with Aircon Energy Services, Inc., in the amount of $957,892 to provide design/build mechanical and HVAC (heating ventilation and air conditioning) system improvements at the Civic Center Building. FISCAL IMPACT: Funds in the amount of $891,877 are budgeted in Account No. 725-7028- 481200-1604 (Mechanical). A transfer of $66,015 from Unappropriated Funds for asbestos removal would total $957,892. (A2100.0 AGR-2978) The Community Services Manager explained the current energy system is antiquated and substandard. The system is approximately 37 years old and no longer cools or heats the buildings sufficiently. The new system will be completely automated to provide better energy efficiency and operate during the PAGE 18 CITY COUNCIL MINUTES January 27, 1998 13. PUBLIC HEARINGS (Continued) hours of use of City Hall. The anticipated energy savings with the new system will be approximately 66,000 a year. MAYOR COONTZ OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKER, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION - Spurgeon SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to find and determine that the anticipated cost to the City for the energy conservation facility under the contract with Aircon will be less than the anticipated cost to the City of energy that would have been consumed in the absence of the proposed energy conservation facility.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to award a contract to AirCon Energy and authorized the Mayor and City Clerk to execute on behalf of the City.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve an appropriation of an additional $66, 015 from Unappropriated Funds (Building Maintenance) to Account No. 725-7028-481200-1604 (Mechanical) for asbestos removal.13.2 CONDITIONAL USE PERMIT 2196- 97, JAMES E. PROSSER, JR.:Tape 5175 Time set for a public hearing to consider approval of Conditional Use Permit 2196-97. The applicant is proposing to construct an accessory second unit behind an existing residence. The site is located at the southeast corner of Cambridge Street and Rose Avenue (addressed 904 E. Rose Avenue). (C3300.0 CUP-2196-97)NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15303.The Director of Community Development presented the report, noting the property is zoned R-1-6 Single Family Residential), currently occupied by a single-family residence of approximately 1600 square feet. The accessory second unit will be a 500 square foot separate living unit. All code requirements are being complied with.PAGE 19 Hr 11 lIT.. I I iih L CITY COUNCIL MINUTES January 27, 1998 13. PUBLIC HEARINGS (Continued) MAYOR COONTZ OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION - Mayor Coontz SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that this project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15303.MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve Conditional Use Permit 2196-97 as outlined in Planning Commission Resolution No.PC 54-97.13.3 TENTATIVE TRACT MAP 14359; CALIFORNIA QUARTET, A CALIFORNIA LIMITED PARTNERSHIP:Tape 5327 Time set for a public hearing to consider approval of Tentative Tract Map 14359. The applicant proposes to create 245 lots and develop 223 units on approximately 172 acres in the Peralta Hills,pursuant to the Serrano Heights Specific Plan. The property is located within the Serrano Heights Specific Plan Area, which is located north of Santiago Oaks Regional Park, east of the Southern California Edison Serrano Substation, south of Anaheim Hills, and west of Noh I Ranch Road. NOTE:The project's environmental impacts have been addressed by Final Environmental Impact Report 954 and Supplemental EIR 1305 and Addendum (dated January 21, 1997). (T4000.0 TTM-14359)The Planning Manager gave a brief history of the project. This project will create two residential subdivisions along both sides of Serrano Avenue with 139 units to the south and 84 units to the north.The property has recently been sold to another master builder.MAYOR COONTZ OPENED THE PUBLIC HEARING.Bob Bennyhoff, 10642 Morada Drive, said the people of Mabury and Orange Park Acres generally approve the project. Concern was expressed with fuel modification. Mr. Bennyhoff asked the applicant,Mr. Elfend, to see the fuel modification plan that will need to be approved by the fire department. Mr.Elfend was asked that the street lights be the same as those in Mabury Ranch. Concern was expressed with traffic problems that could result from two areas where condominiums and townhomes will be developed.PAGE 20 m! idl IIf I CITY COUNCIL MINUTES January 27, 1998 13. PUBLIC HEARINGS (Continued) Frank Elfend, Elfend and Associates, 610 Newport Center Drive, Suite 1290, Newport Beach, said he will keep his word on the project. The Mabury Ranch Homeowners Association asked his consideration on two issues: 1) accelerating construction of the wall enclosures along Serrano Avenue as they currently exist; and 2) whether they would agree to install a traffic signal and stop sign. Mr. Elfin told the Association they would agree to the signal and stop signs if the Public Works Department makes the necessary findings to install them. A letter was submitted for the City's public record from Mr. Elfin's attorney to the Mabury Ranch Homeowners Association agreeing to their terms, with the inclusion of their agreement to withdraw their waivers regarding the construction of Serrano Avenue, which was initially four lanes rather than two. The City Attorney said the letter did not seem to effectuate any changes to the agreement that would be of import to the City, however, the City reserves the right to look at it. The letter does not need to be referenced when making the motion on the Tentative Tract Map. MAYOR PRO TEM SLATER COMMENTED FOR THE RECORD: "The last time that this came before us, our Acting City Attorney at the time had some concerns about protecting the City in terms of potential slope subsidence. There have been those types of problems in them there hills, on both sides, I should say. It was suggested that the City consider requiring private utilities, private slope maintenance, and private streets in the area, so that the City has not accepted a dedication of those improvements which do give rights to liability. Another suggestion would be to have an independent geologist review the soils report at the developer's expense, so there would be another level of defending against negligent claims. Also, a CC&R's provision on indemnification and waiver that would run with the property. The purchaser would then buy subject to that. The purchaser would have to indemnify the City, having not only his own maintenance obligation, but look out for the City's interest also. That was the Interim City Attorney's opinion at the time. I have a lot of respect for him. I would like very much for our own Public Works Director and our current City Attorney to give their thought and comments on those issues." The City Attorney responded that he believes what the Interim City Attorney suggested will be done. There will have to be an independent geologist who reviews the soils and makes recommendations to put in protections against slides. The Director of Public Works explained the soils and geology reports for the project are prepared by a licensed civil engineer, who is also a soils engineer and an engineering geologist, retained by the developer who has the responsible charge for the work. The City contracts with Earth Mechanics to review the reports and do field reviews as the work progresses. The City's geologist identifies any shortcomings, methodology or deficiencies in the reports and in the field operations and calls them to the attention of the developer's engineers. This is done on a regular basis by the City's geologist. It would be required the issues be addressed in accordance with the City's grading ordinance and acceptable engineering practices. Slope maintenance will be private as it will be homeowners association maintenance only. The City is in conformance with what the Interim City Attorney recommended. He indicated the indemnification and covenants are not normal practice in any type of land development he is aware of. The standards being required of Mr. Elfend are equal of any standards applied in hillside PAGE 21 illf If I CITY COUNCIL MINUTES January 27, 1998 13. PUBLIC HEARINGS (Continued) development. The City's grading ordinance is a very good one. The consultant retained by the City is paid by the developer through fees that are collected. The payments are made by the City to the geologist. Mayor Coontz commented as this project went through the Council years ago, there had been packed audiences and participation from many different groups. Many of these issues were addressed and the City has been consistent in addressing these same types of issues. MOTION - Spurgeon SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that the project's environmental impacts were adequately addressed by Environmental Impact Report 954 and Supplemental Environmental Impact Report 1305, as amended previously.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that the project is consistent with the City's General Plan, Serrano Heights Development Agreement and Specific Plan.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve Tentative Tract Map 14359 as outlined in Planning Commission Resolution No. PC 61-97.MAYOR COONTZ COMMENTED FOR THE RECORD: "There was a side letter that was signed with the Mabury Ranch group and the developer for the record."14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Shannon Tucker, 556 E. Culver, commented she wished to share some correspondence that she received from the District Attorney's office on Thursday and read a portion of the letter into the record as follows: "The transcript of the statements made by Orange City Attorney on November 19, 1997, which you kindly attached to your letter, I read with interest and believe some clarification is required.Although the leaking of the affidavit in and of itself appeared to violate no specific penal statute, it was not the intention of this office to convey the impression that under no circumstances would this constitute a crime. If evidence can be produced which proves each ofthe following, this office would PAGE 22 II ill~ III IIi CITY COUNCIL MINUTES January 27, 1998 15. ORAL PRESENTATIONS (Continued) certainly evaluate it to determine if there was a violation of a penal statute and if it is sufficient to prove that violation beyond a reasonable doubt. 1. The identity of the individual who leaked the affidavit. 2. The date when the affidavit was leaked, before or after the sealing order was signed. 3. The individual's knowledge of the court order prohibiting disclosure of the affidavit at the time it was leaked. 4. The individual's intent in leaking the affidavit, i.e. was it for the purpose ofwaming the individual's who were the subject ofthe search warrant, or was it the purpose of obstructing the ongoing investigation, or was the leak made with the intention really to accommodate an inquisitive reporter. The only opinion given to Chief Robertson and/or Orange Police Department investigators was that insufficient evidence ofthe crime existed at that time. At no time were the investigators nor was the Chief advised to stop the investigation or to refrain from attempting to approve the elements mentioned above. Very truly yours, Jan Nolan, Assistant District Attorney, Director of Superior Court Operations." Ms. Tucker challenged the City Council, staff and citizens to speak and choose their words carefully and act with kindness and respect at all times. Josephine Naya, 2411 N. Cumberland Road, requested the City's assistance and support in making the neighborhood aware of coyotes in the area. Concern was expressed for the safety of the community, family, neighbors, and pets due to coyotes in her area. Mayor Coontz responded the Orange County Animal Control Agency has presentations that are made on coyote awareness. This would not be in the City's purview to address this issue but the message will be conveyed to them. It was suggested there be a community service announcement on cable television with suggestions to homeowners on how to discourage coyotes. Carole Walters, 534 N. Shaffer, expressed disappointment that the Board of Supervisors may vote in favor of the $1 vehicle registration fee which would fund the replacement of the County-wide Cal-ID Fingerprint Identification System. Ms. Walters spoke in support of Chief Robertson; asked who the City is trying to protect; whether the District Attorney is still investigating the conflicts; and indicated Mr.Rudat should not be a part of this.The City Manager responded the information was turned over to the District Attorney. He has been told that when the District Attorney is ready to address it they will, and they have not.Pam Pratt, 1143 E. Oakmont Avenue, requested the City Council place the City Manager on paid administrative leave until his criminal investigation is over. ( C3500.0)Barbara DeNiro, (address on file), commented on the Aircon item and the asbestos problem. The library report should be on the 7 p.m. agenda. She misunderstood the library book sales and asked how the donation money is used. There is graffiti around the antique shops. There are canvas signs in front of the new Century Theater complex at Katella and Main. There is a canvas sign in front of the residence along Collins. She asked ifthey are legal. Will the older bikes still be used by for police patrol? PAGE 23r. .~~-----.- i iii. I CITY COUNCIL MINUTES January 27, 1998 RECESS The City Council recessed to Closed Session at 8:10 p.m. and reconvened at 8:50 p.m. 16. ADJOURNMENT MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez The City Council adjourned at 8:50 p.m.jd1AA~&~~<~CASSANDRA J. HC T, CMC CITY CLERK PAGE 24 fl; 11 III III I