05-26-1998 Council Minutesr~II APPROVED
BY
THE
CITY COUNCIL ON JUNE 9, 1998 CITY COUNCIL MINUTES
ORANGE, CALIFORNIA OF A REGULAR
MEETING May 26, 1998 The City Council
of the City of Orange, California convened on May 26, 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 Mayor
pro tern Slater 1.2 ROLL
CALL PRESENT - Murphy, Slater,
Mayor Coontz, Spurgeon, Alvarez ABSENT - None 1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
The City Manager introduced the
City's new Internal Audit Manager, Jim Benuzzi.The City Manager presented Employee
Recognition Service Awards to Virginia Powell and Jack Thomas. (C2500JA.18)
Linda Romero, on behalf of
the National Arbor Day Foundation and the California Department of Forestry and Fire
Protection, presented to the City of Orange the 1997 Tree City U.S.A
award. Doug Kokesh was introduced as the City's new certified arborist.Mayor Coontz announced the
upcoming
C.O.P.S. Expo on June 6-7 at the Mall of Orange. The Gogh Van
Orange event has been rescheduled to June 6-7. American Legion Orange Post
132 will celebrate their 70th Anniversary in front of 143 S. Lemon Street on June
6th.Mayor Coontz noted
the following events have occurred since the last Council meeting:The Citizen's
Police Academy Graduation Funfest at the
Senior Center Orange Lutheran High
School 25th Anniversary Celebration National Public Works
Week at the Corporation Yard Chapman Law School
Inaugural Hooding Ceremony Fairhaven Memorial Park
Farewell Recognition of the Marines in EI Toro Councilman Alvarez announced
he will be holding a community forum at Santiago Canyon College in
East Orange on Saturday, May 30, 1998 at 10 a.m.PAGE 1
CITY COUNCIL MINUTES May 26,1998
2.CONSENT CALENDAR Tape 365
2.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council
agenda of a regular meeting of May 26, 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.
2.2 Request Council confirmation of warrant registers dated May 7 and 14, 1998.
ACTION: Approved.
2.3 Request approval of City Council Minutes, Regular Meeting, April 28, 1998
continued from May 12, 1998) and Regular Meeting, May 12,1998.
NOTE: Councilman Alvarez recorded an abstention on the minutes of May 12th due to
his absence.
ACTION: Approved.
2.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
AGREEMENTS
REMOVED AND HEARD SEPARATELY)
2.5 Establish "Pass Through Fund" of $70,000 for Annual Subdivision Plan Checking
Services. (A2100.0 AGR-
3040)SUMMARY: Appropriation of this fund establishes a mechanism to pay for
services invoiced by the City's consulting plan checking engineer firm for work performed
on private development projects. Invoiced amounts are collected from private developers
as a reimbursement to the City. A contract with Gong Enterprises Inc. is presented
for approval at this time. A second consultant will be considered if the demand
dictates another is
needed.FISCAL IMPACT: Expenditure Account No. 100-5012-426700 $70,
000 - Revenue Account No. 100-
5012-292100 $70,000.Discussion: Barbara DeNiro, (address on file), requested an
explanation. The Director of Public Works explained a heavy plan check load is anticipated due
to the Serrano Heights Project and other activity within the City. All expenses will be
reimbursed from the fees
collected from
the developers.
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
MOTION - Spurgeon SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to appropriate $
70,000 to Account Number 100-5012-426700 and increase the revenue
budget by $70,000 in Account Number 100-5012-292100 to
reflect reimbursement from developers. Authorized the City Manager to execute
Consultant Services Agreement with Gong Enterprises Inc. for plan checking services in the
amount of $30,
000.2.6 Consultant Agreement with Willdan Associates for Construction Inspection
and Public Relation Services for The City Drive Widening (SP-3210) and
The Critical Intersection Improvement at The City Drive and Chapman
Avenue (SP-3158).
A2100.0 AGR-3051)SUMMARY: The Public Works Department solicited
written proposals from four construction management firms. Two consultants responded
and were ranked according to the quality of proposal, qualifications, experience, cost, and
ability to meet the conditions of the Consultant Agreement. One more month has been
added to the contract because of the staggered starting dates of the two projects which
was not contemplated at the time proposal requests were issued. The Public
Works Department negotiated the revised work scope with the top ranked consultant, Willdan Associates,
and arrived at a final cost of $125,994.00 for 5 months inspection
and public relations services.ACTION: Authorized Mayor and City Clerk to execute
a Consultant Agreement with Willdan Associates for construction inspection and public relations
services in an amount
of$125,994.00.FISCAL IMPACT: Funds are available in
the following account: 550-5011-483300-3235 $125,
994.00 (City Drive Widening/Chapman).2.7 A request by Michael and Janet Bair to connect their
property to a City
of Orange sewer. (A2100.0 AGR-3050)SUMMARY: The parcel, 20402 Amapola Alley,
is in an unincorporated area of Orange Park Acres. It is located along
the northerly boundary of the City-owned recreational trail running easterly from Ranchwood
Trail to Santiago Canyon Road. Mr. And Mrs.Bair have received approval from the City
for construction of a sewer in the recreational trail. They will be
dedicating that sewer to the City of Orange.ACTION: Approved the request and authorized
the Mayor and City
Clerk to execute on behalf of the City.FISCAL IMP ACT: None. Mr. And Mrs.
Bair have posted the deposit as stipulated in item 3 of page 1 of the sewer
agreement. Construction of the sewer and all connection and permit fees will be at their expense and they will
also pay a sewer charge as per item
1 on
page
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
BIDS
2.8 Bid No. 978-39 - Three Backhoe Loaders (A2100.0 AGR-3027.
III)SUMMARY: The three loaders are used for construction and maintenance projects by
the Public Works Department throughout the
City.ACTION: Awarded Bid No. 978-39 to SMA Equipment Company in the
amount of174,296.40 and authorized the Mayor and City Clerk to execute the contract on
behalf of
the City.FISCAL IMPACT: Funds are budgeted In Account No.
720-5023-
472102 (Motor Vehicle Replacement).2.9 Bid No. 978-45 - One Six-Wheeled
Dump Truck (A2100.0 AGR-3045)SUMMARY: The six-wheeled dump
truck is used for construction and maintenance projects by
the Public Works Department throughout the City.ACTION: Awarded Bid No. 978-
45 to Westrux International in the amount of 63,382.86 and authorized the Mayor and City
Clerk to
execute the contract on behalf of the City.FISCAL IMPACT: Funds in the amount of$63,
382.86 are budgeted
in Account No. 720-5023-472102 (Motor Vehicle Replacement).2.10 Bid No. 978-32 - Project
SP-3210, The City Drive Widening from the Garden
Grove Freeway to Dawn Way/City Way. (A2100.0 AGR-3046)SUMMARY: The
City of Orange General Plan adopted August 22, 1989 identifies The City Drive
and Chapman Avenue in the Critical Intersection Program component of the circulation
element. The City Drive widening is necessary to alleviate congestion and promote a
stable circulation system to accommodate future growth. This project is the second segment of
the improvements along The City Drive from Chapman Avenue to the Garden
Grove Freeway. The first segment is the improvements at the Critical Intersection
of The City Drive and Chapman Avenue. These improvements will enhance
access to the Mills Development scheduled to open in November, 1998.ACTION: Awarded Bid No. 978-
32 in the amount of $1,531,553.60 to All American Asphalt and authorized the
Mayor
and City Clerk to execute the contract on behalf of
the City.FISCAL IMPACT: Funds are budgeted inthe
following account:
550-5011-
CITY COUNCIL MINUTES May 26,1998
2.CONSENT CALENDAR (Continued)
2.11
REMOVED AND HEARD SEP ARATEL Y)
Bid No. 978-43 - Picnic Shelters at La Veta and EI Modena Parks. (C2500.M.4)
NOTE: The City Attorney indicated staff requested the removal of this item as
modifications need to be made to the report.
SUMMARY: Award Bid No. 978-43 to Varkel Construction, Inc. for the construction
of picnic shelters at La Veta and El Modena
Parks.FISCAL IMP ACT: Funds are budgeted in FY 1997/98 in the following
accounts:510- 7021-481105-0086 (El Modena Park
Renovation) $44,657 510-7021-481105-0134 (
La Veta Park
Renovation) $60,120
MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez Moved to remove this item
from the agenda.REMOVED
AND HEARD SEPARATELY)2.12 Bid No. 978-52 - Approve plans and specifications and authorize
advertising bids for street lighting modifications
in Old Towne.NOTE: The City Attorney indicated staff requested the continuance of this
item to
June 9,1998.SUMMARY: This project will modify, replace or upgrade the existing
street lights in Old Towne at the following locations: Northeast area (Orange St.,
Center St., Cleveland St. and Pine St.); Northwest area (Maple Ave., Lemon St., Olive St.
and Palm Ave.);Intersection of Chapman Ave.
and Center St.FISCAL IMPACT: Funds are budgeted in the Capital
Improvement Program utilizing TSIP and CDBG funds. The Engineer'sEstimate is $
397,400.00.
MOTION - Murphy SECOND -
Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved to continue to the June 9, 1998 Council meeting.
2.13 Approve plans and specifications and authorize advertising for bids for the Annual
Street Maintenance Slurry Seal Contract at various locations for the fiscal year
1997-1998. (S4000.
0)SUMMARY: Plans and specifications have been completed for the annual
street maintenance slurry seal at various locations. The project is ready to be advertised
for bids. The estimated construction cost is $742,
000.PAGE
5
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
ACTION: Approved plans and specifications and authorized advertising for bids for the
1997-1998 Street Maintenance Slurry Seal at various
locations.FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program in
the following
accounts:262-5021-483300-3120 $611,
208 (Local Street Maintenance)262-5021-
483300-3112 $194,107 (Arterial
Street Maintenance)245-5021-473300-3190 $
15,000 (Bikeway Maintenance)REMOVED AND HEARD SEP ARATEL Y)2.14
Bid No. 978-35 for McPherson Athletic Facility (A2100.0 AGR-3044)SUMMARY: Construction
will be completed in two phases. Phase I will begin June 8,
1998 and includes grading, construction of the four soccer fields, outdoor multipurpose courts, hardscape,
play equipment, walking path, tot lot and new parking lot. Phase II will be
completed by December 31, 1998 and includes construction
of the two concession buildings, baseball facility, block walls, landscaping
and hardscape.FISCAL IMP ACT: Funds are budgeted
in the following accounts:510-7021-485100-0143 (park,
Acquisition & Dev. Ballfield Relocation) $393,000
550-7021-485100-0143 (County from Strawberry Field Funding) $2,713,000
510-7021-485100-0143 (Ballfield Relocation Account) $25,200 Discussion: Barbara DeNiro, (address on file), asked
what the total Strawberry Field funding was? What else will it be used
for? The
City Manager indicated he met with County representatives to discuss the funding and an additional $2
million for another City project.Mayor pro tern Slater noted that Valley Crest
was the only contractor that bid on
the project. He expressed concern with the add-alternates and hopes that savings can
be found to absorb some ofthe add-alternate items.The City Manager expressed the same concerns and
explained with the delays to the project, the $145,000 is needed to sod the fields. The hydro
seed process requires 90 days to mature and the fields would not
be ready for
school use or
soccer season. It is hoped that most of
the block
wall is
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
Moved to award Bid No. 978-35 to Valley Crest in the amount of $3,131,200 for
the construction of McPherson Athletic Facility; 2) approve a transfer in the amount
of 25,200 from Park Acquisition and Development Fund (510) Unappropriated
Reserves and appropriated funds to the Ballfield Relocation Account No.
510-7021-485100-0143;and 3) authorize the Mayor and City Clerk to execute the contract on
behalf of the City.REMOVED AND
HEARD SEP ARATEL Y)2.15 Bid No. 978-36 for Main
Library Renovation (A2100.0 AGR-3043)SUMMARY: The City Council on January 27, 1998
approved funding in the amount of 1,614,974 for the construction of
the Main Library, including the Information Technology
Center, moving costs and new shelving.FISCAL IMP ACT: Funds are budgeted for FY
1997/98 in the
following accounts:310-9645-481105-9900 (
CDBG) $325,000 500-7028-481105-9900 (Main Library Renovation) $803,241 NOTE:
The remaining fund balance of $83,733
will include architectural fees, moving costs, new shelving and Information Technology Center.Councilman Alvarez asked
if monies saved on the bid could be set aside for a contingency
or emergency fund. He expressed concern that more cabling may be needed
after the completion of the remodeling for additional computer workstations. The City
Manager explained the approximate $48,000 difference between the engineer's estimate and the bid
will be for
change orders. The cabling
is sufficient; additional
cabling will not be needed.MOTION - Mayor Coontz
SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to award Bid No. 978-
36 to Great West Contractors, Inc. in the amount of 1,128,241 for the
Main Library Remodel and reject all other bids. Authorized the Mayor and City
Clerk to execute the contract on behalf of the City.2.16 Bid No.
978-50. Approve plans and specifications and authorizeadvertising
bids for city-wide striping and pavement marking. (S4000.S.
3.3)SUMMARY:
This invites competitive bids for providing city-wide striping and pavement
marking services.ACTION: Approved plans and specifications and authorized advertising Bid No.
978-
50 for
the installationof
traffic striping,
CITY COUNCIL MINUTES May 26, 1998
2. CONSENT CALENDAR (Continued)
FISCAL IMPACT: $91,250 in next fiscal year's budget in the Contractual Services
Account No. 100-5031-427100 will be appropriated for this contract. The
contract will not be awarded until after approval ofthe
1998-
99 Budget.CLAIMS 2.17 CLAIMS
FOR DAMAGES FROM:a. Susan Salgado, dba The Purple
Turtle (C3200.0)
FISCAL IMPACT: None.ACTION: Denied claim for damages and referred to City
Attorney
and Adjuster.CONTRACTS 2.18 Contract with the Mall of Orange to hold annual C.O.P.S.
EXPO. (A2100.
0 AGR-1372.J)SUMMARY: The Annual C.O.P.S. EXPO will be conducted at the
Mall of Orange June 6th from 10:00 a.m. to 7:00 p.m. and June 7th from 1l:00 a.m. to
6:00 p.m.ACTION: Authorized the Mayor and City Clerk to execute
on behalf ofthe
City.
FISCAL IMPACT: None.GRANTS 2.19 City of Orange Homeowner ParticipationProgram. (C2500.
G.1.3.1)SUMMARY: A proposal to approve a Homeowner
Participation Program (HOPP) grant for Case No. 640 and to authorize the Finance Department
to prepare a warrant.ACTION: Approved a HOPP grant in the amount of $2,000 for
Case No. 640 and authorized the Finance Department
to prepare a warrant.FISCAL IMPACT: Sufficient funds are available in the HOPP
Fund 315. The HOPP grant will be recorded
under Account No. 315-9653-427800-1221.2.20 City of Orange Homeowner
Participation Program. (C2500.G.1.3.1)SUMMARY: A proposal to
approve a Homeowner Participation Program (HOPP) grant for Case No. 644 and to authorize
the Finance Department to prepare a warrant.ACTION: Approved a HOPP grant in the amount of $
2,000 for Case No. 644 and authorized
the Finance
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Sufficient funds are available in the HOPP Fund 315. The HOPP
grant will be recorded under Account No. 315-
9653-
427800-1221.RESOLUTIONS 2.21
RESOLUTION NO. 8932 A Resolution of the City Council of the City of Orange approving
Lot Line Adjustment LL98-4 adjusting lot lines of certain real property situated at
3903 and 3908 E.Mandeville Place in the City of Orange, County of
Orange, State of California.C2500.
M.16.1 LLN-98-
4)Owners:
Pat and Kay Boland ACTION:
Approved.2.22 RESOLUTION NO. 8928 A Resolution of the City Council of the City
of Orange upholding the recommendation of the Planning Commission of the City of
Orange and approving the subdivision of property situated north of Santiago Oaks Regional
Park, East of the Southern California Edison Serrano Substation, south of Anaheim Hills and west
of Nohl Ranch Road in the Serrano Heights
Specific Plan Area. (T4000.
0 TRT-14359)Tentative Tract Map 14359
Applicant: California
Quartet, a California limited partnership
ACTION: Approved.2.23 RESOLUTION NO. 8933 A Resolution of the City Council of the
City of Orange approving Lot Line Adjustment LL98-5 adjusting lot lines of certain real
property situated at 1730 and 1878 N. Main Street in the City of Orange, County of
Orange,
State of California. (C2500.M.16.1
LLN-98-
5)Owners: Arden Engineering
Inc., and Southdown Inc.ACTION:
Approved.REMOVED AND HEARD SEPARATELY)2.24 RESOLUTION NO. 8934 A Resolution of the City Council
of the City of Orange declaring weedsas
a public
nuisance
and
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
Discussion: Barbara DeNiro, (address on file), requested the weeds be abated at the
Southern California Presbyterian property on Taft and an updated report on the project.
The City Manager responded the Fire Department will look at the property. Councilman
Spurgeon asked that a report be provided once the weeds have been removed.
MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve.
2.25 RESOLUTION
NO. 8935 A Resolution of
the City Council of the City of Orange relating to the classification,compensation, and terms
of employment for Part-time and Seasonal Employees of the City of
Orange, and repealing Resolution No. 8669 and amendments thereto, for said employees. (C2500JA.
7)ACTION: Approved.
2.26
RESOLUTION NO. 8943 A Resolution
of the City Council of the City of Orange expressing appreciation to Alfred Remyn of
the Public Works Department and commending him for more than 30 years of loyal and
dedicated service. (C2500.M)ACTION: Approved.
2.27
RESOLUTION NO. 8938 A Resolution
of the City Council of the City of Orange upholding the recommendation of the Planning
Commission of the City of Orange and granting a Conditional Use Permit to allow sale
of beer and wine in connection with a restaurant upon property situated at the northeast corner
of State College Boulevard and Rampart Street. (C3300.0 CUP-2200-97)
Conditional
Use Permit 2200-97
Applicant: Manila Peninsula Restaurant
ACTION: Approved.
2.28 RESOLUTION NO. 8939
A Resolution of the City Council of the City of Orange upholding the recommendation of
the Planning Commission of the City of Orange and approving the subdivision of
property situated west of Esplanade Street and north of La Veta Avenue. (T4000.0 TRT-
15519)
PAGE 10
I'
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
Tentative Tract 15519, Minor Site Plan Review 39-
97 Applicant: TNR Development
Corporation ACTION:
Approved.2.29 RESOLUTION NO.
8944 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 a special event. (S4000.
SA)SUMMARY: The Orange Chamber of Commerce has requested the postponement
of this year's Gogh Van Orange Arts & Music Festival to June 6-7, 1998, due
to anticipated weather conditions. Council previously approved the closure of the Plaza for
this event to occur on May
16-17,
1998.ACTION: Approved.REMOVED
AND HEARD SEPARATELY)2.30
RESOLUTION NO. 8946 A Resolution of the City Council of the City of Orange establishing a
new agenda format for all Regular, Adjourned, and Special Council Meetings and
repealing Resolution No.
3862. (C2500.D)Discussion: Barbara DeNiro, (address on file), asked for an
explanation. The City Attorney explained Public Comments will be heard at the beginning of the 4:30
and 7:00 session. The Pledge of Allegiance and Invocation will be held only at the
4:30 session.MOTION -
Mayor Coontz SECOND -
Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved to approve.
SPECIAL EVENTS
REMOVED AND HEARD SEPARATELY)
2.31 Request for temporary suspension of permit parking restrictions within Permit
Parking Area "A", (Downtown Area) for a special event. (S4000.S.3.1.2)
SUMMARY: The Orange Chamber of Commerce has requested the postponement of
this year's Gogh Van Orange Arts & Music Festival scheduled to occur in the Historic
Plaza area on Saturday and Sunday - June 6-7, 1998, due to anticipated weather
conditions. Council had previously approved the temporary suspension of permit parking
restrictions for this event to occur on May 16-17,
1998.FISCAL IMPACT:
None.PAGE
CITY COUNCIL MINUTES May 26,1998
2. CONSENT CALENDAR (Continued)
Discussion: Carole Walters, (address on file), asked if permit parking will be suspended
in all of Area A? The Director of Public Works explained the restriction would apply to
the entire area.
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve.
2.32 Request
for temporary removal of on-street parking in front of 143 S. Lemon St.S4000.S.
3.1.1 )SUMMARY: American
Legion Orange Post 132 of 143 S. Lemon St., has requested the temporary removal
of on-street parking in front of their building on Saturday - June 6th,1998, for
the rededication of their facility.ACTION: Approved.
FISCAL IMPACT:
None.MOTION -Murphy
SECOND -Mayor
Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Item Nos. 2.
5, 2.11, 2.12, 2.14, 2.15, 2.24, 2.30, and 2.31 were removed and heard separately. Councilman Alvarez
abstained on Item No. 2.3. Item Nos. 2.11 and 2.12 were continued for
modifications to be made to the staff reports. The remainder of the Consent Calendar was
approved as recommended.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS -
None 5. REPORTS FROM BOARDS, COMMITTEES,
AND COMMISSIONS - None 6.REPORTS FROM CITY MANAGER Tape
904 6.1 Presentation of the Third
Quarter 1997-98 Budget Report for the period July 1,1997 through March 31, 1998. (
C2500.E.4)The City Manager presentedthe
report.Mayor Coontz requested that the
columns in the Consolidated Revenues and Expenditures table be more explanatory in future
reports.PAGE 12 r-- ~.II
CITY COUNCIL MINUTES May 26,1998
6. REPORTS FROM CITY MANAGER (Continued)
Councilman Alvarez asked about the delay with the new utility billing software. The City
Manager responded that staff has been working diligently with the contractor on this issue.
MOTION - Mayor Coontz SECOND -
Murphy AYES - - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and
file.7.ADMINISTRATIVE REPORTS Tape
1015 7.1 Request by
the City Attorney for the City Council to consider whether or not to recast its votes on
the Quadrant Plan, the Conceptual Plan for the Plaza Park and Old Towne District Street Lighting
Master Plan to remove the impact of a potential conflict of interest (continued from 5/
12/98). (N1200.0NEG-1553-98)The City
Attorney explained at the April 28, 1998 meeting the City Council voted 5-0 to approve the
Quadrant Plan and the conceptual plan for the Plaza Park. Subsequent to the meeting, he had discussions
with Councilman Alvarez. Councilman Alvarez decided that he should not have participated
in the decision and that he would like to record an abstention. The sole purpose of bringing
this back to the Council was so that Councilman Alvarez could record an abstention.Councilman
Alvarez commented: "Mayor, due to my ownership of properties located at 112 E.Chapman,
60 Plaza Square, and 131 and 129 S. Glassell, I will be abstaining from this for the record.
I also wanted to clarify, or state for the record, that I had submitted a letter on May 5th stating
that I had continued to review my vote after the April 28th meeting. I met with our former City
Attorney Alan Bums in discussions with him in terms of conflicts of interests for me around the
Plaza area. The reason, actually, what I didn't state in the letter, the reason why I felt I could vote
on it, was in reviewing the conflict of interests laws, you begin to realize, in looking at the case
law, that the 300 foot rule is really what they consider a litmus test. It is not an absolute in having
to disqualify yourself. I think that needs to be made clear because, in this case, you have to
make a decision whether there is a financial impact on property that I own, whether it is positive
or negative.I
felt that because of the nature of changing the street lamp post, I could not, in my investigation,determine
how a new street lamp post could affect my property, and that is the reason why I had voted
on that. But, in talking with Alan Burns, I felt that the project is so positive in terms of trying
to do something for the City that the Plaza really is seen as the face of our City. And its that
important that I didn't want to get into an argument with the staff over lamp posts.So,
because of that, and in supporting the project, simply as a property owner, that I felt that the proper
thing to do was to go back, ask the Council to do something that I understand hasn't been done
before. And that was to ask the Council to come back, bring it back, actually to just cast their
votes, so that I could show an abstention for it for the record. But, I think in the future what I
intend on doing is, through the recommendation of my attorney, is to get an appraiser involved,because
I feel it is very important for me to continue to vote. It's just that I want to continue to PAGE
13 L...--.,...--
CITY COUNCIL MINUTES May 26, 1998
7. ADMINISTRATIVE REPORTS (Continued)
vote and at the same time adhere to the conflict of interest laws. So, I am going to continue to
look into this as it is a complicated issue. That is the reason why I have asked to bring it back. I
guess it's provided an opportunity for everybody who loves the trees down there for a second
chance. So that's basically where I was coming from at that point. And with that I need to step
down."
Councilman Spurgeon asked Councilman Alvarez: "You indicated Mr. Bums as being your
attorney. Did you consult prior to the hearing with our attorneys here in the City who are
supposed to advise us?"
Councilman Alvarez responded: "Yes, I did. Just barely prior to the meeting. It's a good point.
Because I felt, at that point, when I just briefly talked with him over it. In my fourteen years in
real estate, I could not determine in any way possible, any formula used, that by changing a street
lamp we would change the property value, either good or bad, to the properties that I am
involved with. And that is really the litmus test for the conflict of interest, the 300 foot rule. It's
not an absolute, it's simply to make a public official stop, re-Iook at an issue that he is going
to vote on, to determine ifthere is a financial impact, either positive or negative. To this time,
I cannot determine that, and even in talking to other appraisers since the vote, they wouldn't
even know how to try to get actually an opinion for me with that. So, that's the reason why I felt that
I was well within my right to vote on that. The City Attorney did express his concern. But, as
I said before, it's not an absolute, that is the way the law is
written."Mayor Coontz: "I understood that he spoke with you three times. And one of the times was
just before you got on the podium. And, if I had known as Chairman that there was a problem
going on, because I was trying to run the meeting, I myself would have stepped in because this is
the first time this has ever happened in the City of Orange where an issue like that, a conflict
of interest, which is something that we are all told about when we run for
office."NOTE: Councilman Alvarez stepped down from the dais at 5 :20 p.
m.The City Attorney explained the reason for bringing this item back to Council was to
allow Councilman Alvarez to abstain and to show any court, in case there was litigation, that the
City Council would have acted with or without the Councilmember's participation. At the May
12,1998 meeting, the matter was continued to solicit public comments concerning the pine
trees.Under the City's Ordinance, for the City Council to reconsider its action, a motion to
reconsider has to be made, adopted, and then approved by a majority of the Council, i.e. three members.
If the motion for reconsideration is not adopted and approved, it dies and the last action taken
by the Council stands. If the motion for reconsideration is adopted, the Council would have to
take action on the Quadrant approval again. If consideration is given to the pine trees, it
would significantly alter the Plan and staff would have to come back with a new plan for the
Quadrants.Mayor Coontz commented that letters were received both pro and con, noting there was
some confusion about the location of the pine trees. She clarified that the trees being addressed
are located in the quadrant area, not in the Plaza
Park.PAGE
14 r ii
CITY COUNCIL MINUTES May 26, 1998
7. ADMINISTRATIVE REPORTS (Continued)
SPEAKING IN FAVOR OF REMOVING THE PINE TREES:
Ramon Calderon, 146 N. Pine Street Hank
Mascolo, (address on file)Pat Buttress,
3434 E. Westridge Drive Chuck Burwell, 4249
E. Cornwall Avenue, President of Chamber of Commerce Carroll Johnson, 100 So.
Glassell REASONS FOR SUPPORTING REMOVAL OF
THE PINE TREES: Pine trees are messy and create safety issues; not the right place
for the Pine trees; would be better saved and transported elsewhere;removal of trees would allow
more pedestrian room and easier egress and ingress into the center of the Plaza; Palm trees
would utilize historical aesthetics; their removal will highlight businesses and lower maintenance costs.
SPEAKING IN SUPPORT OF KEEPING
THE PINE TREES:Carole Walters, (address on file)
Ray Hall, 237 N. California Street
Jim Barry, President of Orange for Trees,
4705 E. Chapman Antonia R. Monzon, 1275 E. Walnut Avenue B.
L. Herbst, 1435 E. Walnut Street, spoke regarding
petition which was submitted to Council with 231 signatures of individuals opposed to removal of the
pine trees.Jim Hathcock, 5739-13 E. Stillwater Avenue Robert Boice, 143
N. Pine Street, addressed CEQA Janine McCormack,
240 N. California Street Irene Malmgren, 280 N. California
Street Anne Siebert, 340 S. Olive Warren
Euchler, 241 Cleveland Street Todd Wallace, 1325
Dana Place, indicated he would donate
his time to come up with
a cost effective solution to save the pine trees.Susie Wallace, 1325 Dana Place Warren D' Ajirro, 270
N. California Street, read a letter of
protest from Thomas Jackson,President of
World Travel Carroll Johnson, 100 So. Glassell Monica Hall, 914 E. Rose Avenue, spoke regarding plumbing
problems from a Sycamore
tree in the City parkway in
front of her house.REASONS FOR OPPOSITION TO THE PINE TREES REMOVAL: The City should
take responsibility for the trees; pine trees are
suitable because of deep-rooted nature; trees are tall, narrow, and majestic with a
canopy that extends from 10-15 to 60 feet; litter can be controlled by pruning
and deep irrigation; a drain line could be installed close to trunk or grade changed without impacting the
trees; pine trees are part of history; trees are healthy and provide a visual connection to
the buildings; financial burden to City by removing them; the Design Review Board originally recommended pine trees be
included in the design for the quadrants but a plan was never presented
to them; important community issue; handling this under a Negative Declaration violates CEQA.PAGE 15 T -~
lr i~ I IJ I
CITY COUNCIL MINUTES May 26,1998
7. ADMINISTRATIVE REPORTS (Continued)
In response to Mayor Coontz, the Community Services Manager explained Phase I of the
Quadrant Plan includes the removal of the planter boxes, removal of the Pine trees and
replacement with Palm trees; street furniture and lighting as approved by Council; and the brick
pavers being replaced with scored concrete. The potential expansion ofthe curb line not to
exceed 13 feet will have further review. Funding will be allocated after July 1, 1998 for Phase II,
the Park Plaza, which includes the improvements of landscape and hardscape elements inside the
Park Plaza. Council approved the formation of an ad hoc committee which will provide further
input into the design and development of the Park Plaza. The names of individuals selected will
be brought back to Council.
The consultant presented a plan to remove the Pine trees in order to return to the historical
character of Orange, targeting the period of the 1880's and 1930's. The brick pavers would be
removed due to slip and fall issues related to the needles and cones from the Pine trees. The Plan
would not be feasible unless the planter boxes were removed. There are storm drain issues. The
public right-of-way needs to be evaluated by a Civil Engineer to improve the
grading and drainage problems in the quadrants. Removing the hardscape would involve trenching
to provide some electrical wiring, irrigation, storm drain connections, and catch basins. Could the
pine trees withstand all of the construction and live during this period? If Council were to
make the change, the Plan would have to be altered and a new plan presented for Council'
s consideration.The consultant has had contact with some companies who would remove the Pine trees at
no cost to the City. There has been limited discussion as to where they would be
re-established. Fifty-two (52) Palm trees, which would be 40 and 25 feet in height, are proposed to be
planted
in the quadrants.Mayor pro tem Slater commented he has come to the opinion that removing the Pine
trees is a drastic move that will significantly alter the look of the Plaza. At the time he
voted for the removal of the Pine trees, he thought it might not be a good idea, admitting he
made a mistake when he voted to remove the Pine trees last month. After gathering
more information and hearing from more people, he thinks an alternative plan should be presented.
The Plan presented is a very good one, well thought out, with a lot of input. However, Council has
not seen or considered an alternative plan. Concern was expressed that all Palm trees
would be overkill.The Pine trees have an estimated appraisal of $430,000, which is an asset to
the City. He understands there has never been a lawsuit resulting from the Pine trees. The
Pine trees provide shade for outdoor dining, which Palm trees do not. Concern was expressed
that something too drastic is being done to an historic district. He further indicated he was under
the impression that the Planning Commission and Design Review Board members had reviewed the
plan, which
they had not.
MOTION - Slater SECOND -
Murphy AYES - Murphy, Slater, Spurgeon
NOES - Mayor Coontz ABST
AIN- Alvarez Moved
to ask that a proposal come before Council that would include saving the Pine trees.PAGE
16 1--
CITY COUNCIL MINUTES May 26,1998
7. ADMINISTRATIVE REPORTS (Continued)
NOTE: Mayor Coontz confirmed with Mayor pro tem Slater that his motion is asking for
reconsideration of Council's action. Councilman Murphy noted he seconded the motion for
reconsideration to recast the votes, based on the City Attorney's request to allow that there be an
accurate vote taken, so there would be no liability issues involved with having a Councilperson
vote who had a conflict of interest.
Mayor Coontz explained she voted no on the reconsideration as she was concerned that this
could happen on any semi-controversial
issue.a. Quadrant Plan and Conceptual Plan for the Plaza
Park MOTION - Spurgeon
SECOND - Mayor Coontz AYES -
Murphy, Slater, Mayor Coontz, Spurgeon ABSTAIN-Alvarez
Approved
Negative Declaration 1553-98 with the finding that the project will not have a
significant adverse impact on the environment.
The Director of Community Development confirmed that Negative Declaration 1553-98
was prepared according to CEQA and includes the information needed to understand
the environmental impacts of the project. The Community Services Manager indicated changes
to the Park Plaza recommended by the Committee in the future may require amending the
Negative Declaration or require a Mitigated Negative Declaration showing mitigation monitoring
issues.MOTION - Spurgeon
SECOND - Murphy AYES -
Murphy, Mayor Coontz, Spurgeon NOES - Slater
ABST AIN- Alvarez
Approved the Quadrant
Plan, except for 1) the location of the trees in movable planters; 2) the installation oflight bollards
at the corners of the intersections; and 3) the street furniture, and referred these specific
items to the Committee to be formed by the consultant.The Community Services
Manager explained the proposal is to remove the trees to do excavation work under the
brick paver areas and extend the curb line. Mayor pro tern Slater indicated in discussions with arborists,
because the Pine trees are so deep-rooted, he understands the excavation would
not pose a problem to the tree. He believes an alternative plan to save the Pine trees should
be considered by Council, with the Palm trees in the corners as they were originally.Councilman Murphy
noted he had confirmation from the consultant that there is an agreement that will
be drafted for a tree service to move the trees. Some of the trees would stay in Orange.The majority
would go to the tree mover in exchange for the services rendered.PAGE 17
CITY COUNCIL MINUTES May 26,1998
7. ADMINISTRATIVE REPORTS (Continued)
MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon ABSTAIN- Alvarez Approved
to proceed
with the conceptual plan for the Plaza Park using the advice ofthe Committee created by
the consultant, and the committee to return to Council within 90 days to indicate their recommendations
for the entire plan.MOTION - Murphy SECOND -
Spurgeon AYES - Murphy,
Mayor Coontz, Spurgeon
NOES - Slater ABSTAIN- Alvarez Authorized staff
to advertise for
bids for
the quadrants and approve a transfer in the amount of 395,000 from the General Fund Unappropriated
Reserves to Fund No. 500 (Capital Projects)and appropriate funds to the Plaza Renovation
Account No. 500-7021-485100-9875.Councilman Alvarez returned to
the dais at 6:40 p.m.7.2 Treasurer's
Report for the period ending April 30, 1998. (C2500.F) Tape 4160 The Finance Director presented
the report.MOTION - Slater SECOND - Murphy
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon,
Alvarez Moved to receive and file.7.3
Refunding Outstanding Bonds for Assessment
District No. 90-1 (Crawford Canyon).A2100.0 AGR-3047; AGR-3048;
AGR-3049)The Finance Director
reported the original bonds were issued in 1990 in the amount of 4,003,000.
The proceeds were used to construct infrastructure for Crawford Canyon Road,including street, storm
drain, lighting, curbs, gutters, and retaining wall improvements. The homeowners would save
approximately 16% annually on their assessments, or $190-250 annually, depending
upon the size ofthe property and assuming the current interest rate is maintained. The
current schedule anticipates Council consider the financing documents and Preliminary Reassessment
Engineering Report at the June 23, 1998 meeting.Mayor Coontz
requested an area map be included with future reports.PAGE 18
rilf .-r----~.
CITY COUNCIL MINUTES May 26, 1998
7. ADMINISTRATIVE REPORTS (Continued)
RESOLUTION NO. 8942
A Resolution of the City Council of the City of Orange declaring intention to refund the
outstanding Bonds of Assessment District No. 90-1 (Crawford Canyon Road), to
levy reassessments as security for the refunding bonds and to continue the lien of the
original assessments on certain parcels of property in the assessment district, and employing
bond counsel, disclosure counsel, financial advisor and ratifying the City Manager's employment
of reassessment
consultant.MOTION - Mayor Coontz
SECOND - Alvarez AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved
that Resolution No. 8942 as introduced, be adopted and same was passed and adopted by the
preceding vote.7.
4Report from the City Attorney regarding the renewal of the City Manager's Contract. (
A2100.0 AGR-2501.B)
The City Attorney explained the City Manager's current contract requires the City Council to
meet in March, 1998 and determine whether or not to extend the City Manager's contract for
another three years. The proposed contract would not result in any pay increases to the City
Manager. The current contract expires in March, 1999. The new contract provides for a three
year agreement beginning May 12, 1998 through May 12,2001.
Carole Walters, (address on file), commented that Council should wait until the trash
investigation is over to renew the contract. If the contract cannot be renewed, he should be given
six months to find another job. The City Attorney explained if a conflict of interest situation was
found, and intent was shown, the contract allows the Council to end the contract. This would be
the case with the newly proposed contract or the existing contract. The new contract does not
result in additional benefits to the City Manager.
Mara Brandman, 7319 Equitation Way, asked what the hurry is to renew the contract? Must the
Council take action on the contract now? The City Attorney responded the Council does not
have to grant a three-year extension at this time. He believes the contract does require the
City Council to make a decision at this time whether or not to extend the contract. The City
Manager is entitled to have his performance evaluated in Closed Session according to the Brown
Act.Nick Lall, 6231 E. Mabury Avenue, commented it would be ill-advised and poorly
timed to renew the contract at this time. Multiple conflicts occurred which stemmed from
the contracts with ORRS and ODS. He referred to the May, 1996 memo being a critical issue.
The decision to renew the contract should wait until the investigation is completed. The
City Attorney responded under FPPC regulations any decision that Mr. Rudat made at that time with
respect to the May, 1996 memo would not have constituted a conflict, as the twelve month period
did not begin to run until September, 1996. From the information the City has now, most of
the fraud occurred before
May, 1996.
PAGE
CITY COUNCIL MINUTES May 26, 1998
7. ADMINISTRATIVE REPORTS (Continued)
Norm Phillips, 348 Redwood, commented that the vote to renew the contract should be put off
until after the November election. The contract states that on December 8th the City Manager
would be reviewed again for an increase in salary. Mr. Phillips asked if the disability benefits
increase from $7,500 to $10,000 a month in the new contract? The City Attorney explained the
contract does not change the City Manager's compensation nor change how the Council would
approach any decision by the District Attorney. The disability benefits increase to $10,000.
However, there would be no additional cost to the City. The contract always contemplated the
disability would be set at 70% of salary, but was never adjusted to reflect that.
Mayor pro tern Slater commented the decision should be considered after the November 3rd
election. He expressed concern with the buy-out cost, should a decision to terminate the
contract be made after November,
1998.Councilman Murphy commented he feels it is the right time to vote on the contract. He
referred to a clause in the contract in which the City reserves the right to terminate the agreement for
any reason prior to May 12,2001 by providing the Manager written notice of election to terminate
as authorized by a majority of the City Council. The City Manager works at the pleasure of
the Council. The contract is up for review at any time based on the pleasure of the majority
ofthe Council. The buy-out cost to the City would be the same under the present
and
proposed contract.Mayor Coontz commented the issue was discussed thoroughly in
Closed Session.Councilman Spurgeon asked if there is a Code provision wherein a
Councilmember, newly elected or otherwise, cannot remove or take action to remove a City Manager for at least
90 days after an election? The City Attorney responded it is a
State law.MOTION -
Spurgeon SECOND - Mayor Coontz
AYES - Murphy, Mayor Coontz, Spurgeon NOES -
Slater, Alvarez Moved to
approve a three-year contract with David Rudat to serve as City Manager.MINUTE
ORDER - COUNCILMAN ALVAREZ: "As a minute order, for the record, just to clarify my no vote.
Basically, my position was, I'm trying to stay consistent with what my review was. My personal review
of Dave. And, I felt at this point, there were a lot of things in the contract that I couldn't
agree with. And, apparently, I thought we were going to be taking this back to Closed Session to
discuss it and hopefully get some more changes. But, because of that, at this point, I couldn't
support it."7.5
Report from the City Attorney on the KPMG Settlement.The City
Attorney reported approximately one week ago the County settled with KPMG Peat Marwick for $
75 million for losses associated with the bankruptcy. The City also had filed a separate lawsuit
against KPMG alleging the City had contacted KPMG in Spring, 1994 to get PAGE 20
r i ~
I:
CITY COUNCIL MINUTES May 26, 1998
7. ADMINISTRATIVE REPORTS (Continued)
advice regarding the safety ofthe investment pool. Assurance was received from KPMG that the
investment pool was safe. As part of the $75 million settlement, the City will receive $1.3
million to offset the losses incurred.
Mayor Coontz asked how many participants were involved in the lawsuit? What was the
potential number of participants that did not get involved? The City Attorney responded the
Orange County Transportation Authority (OCTA), Orange County Water District, and the City
of Orange separately sued KPMG. He indicated he believed there were other agencies that
would have had the same causes of action as the City, but was unsure of how many.
Carole Walters, (address on file), commented on the settlement and asked who the City was
getting $480,000 from? How much is it costing for attorneys? The City Attorney responded the
City's pro rata share of$75 million County settlement with KPMG is $480,000. By the City
filing a separate lawsuit, after the attorney fees were paid, the City will receive an additional $1
million that it would not have otherwise received.
8. LEGAL AFFAIRS - None 9.
RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY The
City Council recessed at 7:50 p.m. and reconvened at 8:00 p.m.10.
ORAL PRESENTATIONS Tape 220 Norm
Phillips, 348 Redwood, expressed disappointment that the City Manager's contract was renewed;
commented it looks like there was some kind of pay back; indicated his question regarding
the review of the contract on December 8th was not addressed; and commented on the City'
s web page. The City Attorney responded the compromise was there would be no increase in
salary, but the contract would be reviewed again in December. At that time, it could be better determined
ifthe City Manager's salary is in line with the median. The City Council has the sole discretion
as to whether an increase is appropriate. The maximum allowed under the contract for severance
pay is one year, if the Council decides to terminate the agreement for no cause. The City
Manager responded the City Council recently approved a contract with BRC to assist with the
web site and the City endeavors to improve it.Barbara
DeNiro, (address on file), commented on funding for projects in Old Towne and the parking
in-lieu fee; said the rest of the City is not being dealt with fairly; and asked for an
explanation. Concern was expressed that senior bingo has started again. She thanked the
firemen in the audience who indicated they will check the weeds on Taft, next to the Southern
California Presbyterian Church. Ms. DeNiro asked if The Block at Orange is a different entity
than the Mills Corporation? Councilman Murphy explained the company is the Mills
Corporation. They changed the name to The Block at Orange on the basis of how different the
project is from the rest of the Mills projects. The City Manager briefly explained the parking in-
lieu fees and suggested Ms. DeNiro meet with the Director of Community Development or his
designee if she needs more information. Council saw the need to come forth now with funding
to provide the necessary improvements in the Plaza area. Mayor Coontz said the Senior Center
PAGE 21
I
CITY COUNCIL MINUTES May 26, 1998
10. ORAL PRESENTATIONS (Continued)
previously had operational problems; new arrangements have been made. The Police
Department works carefully with every bingo operation.
Carole Walters, (address on file), commented that laws should not be made if they cannot be
enforced. Since 1990, how much has been paid for attorney fees for lawsuits? Who pays for
City business cards? Ms. Walters indicated she filed papers with the District Attorney naming
people she is afraid of. The City Manager responded business cards are provided and paid for by
the City.
Mayor Coontz asked if a meeting was held with Ms. Walters to resolve her concerns? The City
Manager responded that he, Mayor pro tern Slater and Councilman Murphy met with Ms.
Walters and her husband. They were told if they could provide any substantial proof of
evidence, it would be investigated. The City is truly concerned for the conduct of any of its
employees and deals with personnel issues very seriously.
Mara Brandman, 7319 Equitation Way, expressed her disappointment with the renewal of the
City Manager's contract; commented on tree debris in the streets being swept by the City; and
asked what is going to happen to the plaques in the Plaza? Mayor Coontz responded the plaques
will be relocated in such a way that they will be easier to see and read. The City Manager
responded the City sweeps the streets in the downtown Plaza area and has taken on contracts to
sweep more often.
Mayor pro tem Slater indicated a comment was made to him that the trash cans overflow quite
often in the downtown area. The City Manager responded staff will look into this issue.
However, often times the businesses are using the trash cans.
Robert Boice, 143 N. Pine Street, expressed concern with the conceptual plan for the Plaza Park,
as it calls for a lot of changes downtown. The section of CEQA he is concerned with are
preservation issues. He requested that Council direct staff to provide him a letter with items they
might perceive as needing additional environmental review in this project and how they would
deal with mitigation monitoring. Mr. Boice asked that his wife Gloria Boice be nominated to the
Committee as a citizen-at-1arge. It is important that someone be utilized that can
identify what items involving the traffic circle and Plaza square are historically important enough
to
trigger CEQA.Mayor Coontz suggested Mr. Boice send a letter with his request. She explained
that Council described categories from which the consultant could choose the Committee.
The information will be provided to the Directorof Community/Library Services and the City
Manager
for reVIew.Councilman Murphy suggested the information be prepared; the findings of the
Committee be posted; and the recommendations be brought back to Council. At that time it could
be stipulated whether there are items that may have an environmental impact that would
require mitigation.The Director of Community Development said the issues that are historically important
to the community are those that are going to be most important to the Council in making
an ultimate decision. Mayor Coontz commented that some recognized organizations interested
in historical issues are the Historical Society and the Old Towne
Preservation Association.
PAGE
22 I. .
CITY COUNCIL MINUTES May 26,1998
10. ORAL PRESENTATIONS (Continued)
Tom Landig, 8017 E. Eucalyptus Trail, asked about the status of the CAL ill fingerprint system?
When will there be an up-to-date functioning fingerprinting system? The City
should utilize Fairhaven Cemetary which has a fully qualified arboretum engineer. Every tree is on
a blueprint.Councilman Spurgeon responded the County Board of Supervisors voted 3-2
in support ofthe CAL ill program. Mayor Coontz stated the City has a geobase map for all the trees
in the City.Todd Wallace, 1325 Dana Place, complimented Councilman Alvarez for rescinding
his vote on the tree issue which provided an opportunity for further discussion. Mayor pro
tem Slater was complimented for admitting he
made a mistake.Aleta Bryant, 148 North Waverly Street, expressed disappointment with the vote on
the pine tree issue. She asked that Council address the issue ofthe private party that has
generously offered to remove the pine trees and requested one for the front of her property. She hopes
the party will not profit by relocating them or selling them to developers elsewhere at the expense
of the people in the City of Orange. Ms. Bryant commented the City Clerk's husband is the
consultant on the project, indicating there is an appearance of impropriety on how issues like
this
are being handled.The City Manager reiterated that no trees will be removed until the City Manager
or his designee has reviewed either the agreements, the cost of removing the trees, and/or the
resale value ofthe trees. The City Attorney explained a $400,000 value could not be placed on the
pine trees with respect to when they are removed by a contractor. He explained there would not be
a conflict of interest with regards to the consultant being the husband of the City Clerk, as the
City Clerk does not make or participate in the decision making process with respect to
hiring her husband.Ron Hall, 914 E. Rose, expressed his appreciation to Mayor pro tem Slater for
retaining the large Sycamore tree in front of his rental property at 1309 Birch Street (corner of
Birch and Main).However, the tree has cost him a lot of money in plumbing costs. He
asked consideration be given to allow him to remove the tree. Receipts will be
provided for review.Mayor pro tern Slater explained that prior to serving on the City Council, he had
written a check for $200 to the City in order to save the Sycamore tree, which was marked to be
removed, so that a clean out could be installed to solve the plumbing problems
it was
causing.11. RECESS The City Council recessed at 9:35 p.m. (after the 7:00 p.m. Session) to a Closed
Session for
the following purposes:a. Conference with Labor Negotiator pursuant to Government Code Section
54957.6: City Negotiator: Personnel Director Steven Pham; Employee Organization:
Orange City Firefighters b. City of Orange vs. Metropolitan Life Insurance, et al. Orange County
Superior Court
Case No. 787195.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 ofthe matters will not be considered
in Closed
Session.PAGE23
I
CITY COUNCIL MINUTES May 26, 1998
7:00 P.M. SESSION
12.1 INVOCATION
Allan Stark, Orange North Rotary
12.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor pro tem Slater
12.3 ANNOUNCEMENTS - None 12.
4INTRODUCTIONS - None 12.5
PROCLAMATIONS - None 12.6 PRESENTATIONS -
None 13. PUBLIC HEARINGS 13.
1 JOINT PUBLIC
HEARING, 1998-99 FISCAL YEAR BUDGET, CITY OF ORANGE (C2500.J.
1.1) Tape 2052 Time set for
a joint public hearing with the Orange Redevelopment Agency to consider the adoption of the
1998-99 Fiscal Year Budget and adopting a limitation on certain appropriations in accordance
with Article XIII of the State Constitution.The City
Manager submitted the budget proposal for the period July 1, 1998 through June 30,1999. Subject
to testimony received at the public hearing, adoption of the documents insure that the City
has established a set of legally adopted appropriations, met all the requirements of the Gann Initiative,
and complied with the Measure M funding requirements of a Seven Year Transportation Capital
Improvement Plan.The budget
document represents a balanced spending plan that continues to reinforce the City's financial position;
redirects City resources to better serve the citizens and businesses of the community; helps
maintain the City's focus on organizational, product and service improvements; and
reinvests in certain aspects of the public's infrastructure which has been deferred during
the recession.The 1998-
99 proposed expenditure budget totals $118 million.BUDGET
HIGHLIGHTS Balanced
Budget: The proposed $53.6 million General Fund budget is balanced with no tax increase
and no layoffs or reduction of services. The City continues to aim for improved City services
while simultaneously reducing operating costs. With the goal in mind, the proposed budget
improves City services that directly and indirectly impact the public.Positive
Economic Environment: The City continues to see signs of the state-wide
economy rebounding. As such, the City is able to project a 4.9% increase in sales tax
revenue for FY 1998-99. This is primarily due to a projected 3.5% increase in taxable
sales PAGE
24 r
CITY COUNCIL MINUTES May 26, 1998
13. PUBLIC HEARINGS (Continued)
for the region and the opening of several retail projects such as Walmart. Although The
Block project is expected to open in November, it is not anticipated that the City will receive
any sales tax revenue generated by this project until the first quarter ofFY 1999-
2000.Three New Police Officers: The City is growing in population, in the number of
businesses and in diversity. The Police Department is constantly striving to achieve improved
results.Three new officers will be added in response to the anticipated increase in service
levels generated by The Block at Orange, which is expected to have 10-12 million
visitors annually.Continued Emphasis on Technology: The continued emphasis on
technology city-wide will be seen through the new facilities made available in the Library
remodel, the building permit process, a new utility billing system coming on line this fall, as
well as expanded information on the City'
s Web page.Promoting Orange: The budget includes a new
Community & Marketing Specialist position in the Economic Development Department. The position will
coordinate print and cable media relations in conjunction with the City Manager's
Office, coordinate special events and film productions, work on marketing of Orange to businesses
and residents with input from the Economic Development Partnership and each of the
departments that provide services
to the community.Continued Emphasis on Capital Improvements: The budget includes $18
million to be spent on 90 separate Capital Improvement Program projects for FY
1998-99, which will result in enhanced drainage, improved City streets, and improved park
sites and tot
lots.CAPITAL IMPROVEMENT HIGHLIGHTS McPherson Park. This new park will have 18 acres of recreation
space with five baseball fields and four soccer fields for the City'
s very active youth.Main Library. The renovated Main Library will include 18,000
square feet oflibrary space,with enhanced interior design and lighting, reconfigured book shelving,
a new children's library section, new Information Technology Center, and
improved handicapped access. The grand re-opening is expected
to be in November, 1998.The City Drive Widening. This two-year widening project, worth
over $4.6 million, will be completed in October, prior to The Block
at Orange grand opening in November.Widening of LaVeta/Main Intersection. This
two-year project will include widening of La Veta from Main to
Batavia for better circulation through the area.Widening of Chapman and Main
Intersection. This project will also improve
the circulation through the heavily traveled intersection.Improvement Projects at Eight Park Sites. Over $2.
7 million will be spent on various park improvement projects, including those at
Hart Park,
Handy
Park,
CITY COUNCIL MINUTES May 26,1998
13. PUBLIC HEARINGS (Continued)
Improvement to Sacramento Street Storm Drain. The City continues to make great
strides in improving the City's storm drain systems. A number of drainage projects were
completed prior to the start ofEI Nino last year.
City Entryway and Monument Signs/Seed Money for New Library. As the Council
directed at the workshop on the Capital Improvement Program Plan, $300,000 has been
included for City entryway and monument signs. $500,000 in seed money for the new library
was identified that the Council set aside earlier this year. It is hoped that the new library can
be funded by a combination of City funds and private contributions generated through the
Library foundation.
SUMMARY OF REVENUES
Estimated revenues for the FY 1998-99 budget total $108.4 million. The General
Fund represents 49% or $53.6 million of the total budget. Excluding one time revenue such as
the Wymer monies the City has recovered and the sale of the old Fire Station 6 site, the
General Fund revenues are projected to increase by approximately 3.2% for FY
1998-99.Significant revenue
changes include:Sales tax increases at 4.9% which is primarily due to an increase in taxable sales
for the region and the opening of several
retail projects.Property tax increases are estimated to be approximately 1.7% due to a
projected slight increase in assessed valuations. The City continues to feel the impact ofthe early
1990's property tax shift as it amounts to a loss to the City of approximately $2.5
million annually.Fines and forfeitures are scheduled to increase by about 26.9% due to a change in
State law last year which allows cities to keep a greater share oftheir traffic
citation revenue.Miscellaneous revenue decreases at 74.7%. The budget does not
include
anyone-time revenues.State vehicle license fees account for 9% of the General Fund budget, or $4.
8 million dollars.SUMMARY
OF PROPOSED EXPENDITURES The budget expenditures represent a continuation of the high level of services
the community has come to expect from the City and a continuation of the City's investment
in its community assets. The FY 1998-99 expenditure budget totals $118 million.
The General Fund expenditures are approximately $53.6 million, an increase of approximately 1.7%.
The Salary and Benefits portion ofthe budget has increased approximately 5.5%, primarily due to the
funding of the first full year offthe furlough. Costs for contractservices have decreased 10.
4% primarily due to large one-time consultant projects that were reflected in the
1997-98 budget. Police and fire services account for
65% ofthe
City'
s
CITY COUNCIL MINUTES May 26,1998
13. PUBLIC HEARINGS (Continued)
Mayor Coontz expressed concern with the $4.8 million impact on the City's General Fund
budget if Assembly Bill 1776, which relates to the vehicle license fee, should pass. How would
it affect the City's budget? The City Manager responded the legislature is still debating the
issue. The League of Cities and others are pushing hard for the legislative body to reconsider the
issue since it impacts all local governments and the County. If the legislature were to pass the
issue and not back-bill, it would be completely devastating to every local agency and the
County government throughout the State of
California.Mayor Coontz stressed the importance of cleaning up the entrances to the City. Mayor
Hotline calls have been received for two years regarding the looks ofthe outlying areas ofthe City.
Will this issue be addressed specifically by Public Works? Was an amount included in the $18,
000 budgeted? The City Manager responded the plan is to identify the vacant lots, assess how
much it will cost to clean them up, and provide a report to
Council.Councilman Spurgeon commented the total cost for the CAL ID Program for FY 1998-99
will be 123,000. Of the total, $100,000 will come from asset seizure and $23,000 from
Federal Police Grants. The completion date is scheduled for June, 1999. The City Manager noted
the funding is for a second reader in the Police Department. CAL ID will provide the
first one.MAYOR COONTZ OPENE D THE PUBLIC HEARING. THERE BEING
NO SPEAKERS,MAYOR COONTZ CLOSED THE
PUBLIC HEARING.RESOLUTION
NO. 8937 A Resolution of the City Council of the City of Orange adopting said City's Budget
for the Fiscal Year 1998-99 and relating to transfers of funds between
and within appropriations,transfers between funds
and additional appropriations.MOTION -
Mayor Coontz SECOND -
Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved that Resolution No. 8937 as introduced, be adopted and same was passed and adopted by
the preceding vote.
RESOLUTION NO. 8936
A Resolution of the City Council of the City of Orange adopting the appropriations limit for the
Fiscal Year 1998-
99.MOTION - Mayor Coontz
SECOND - Alvarez AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Resolution No. 8936 as introduced, be adopted and same was passed and adopted by the preceding
vote.PAGE 27
11 Ii
CITY COUNCIL MINUTES May 26,1998
13. PUBLIC HEARINGS (Continued)
MOTION - Murphy SECOND -
Mayor Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to adopt
a finding that the portion of the budget subject to the Gann limit is $42,697,948 and therefore is
within the limit.MOTION - Slater SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez Moved to approve the Seven Year
Capital Improvement Program.14. PLANNING AND ENVIRONMENT - None 15.
ORAL PRESENTATIONS Carole Walters, (address on
file), commented people
that address the Council have questions and comments, not complaints. Ms. Walters asked if
Council is aware ofa sign at the Police Department reads "United States of Orange," which
she feels is inappropriate.The Acting Police Chief explained the sign
is in a private briefing room, out of public view, at the Police Department. It was paid for
by the officers. In the 1970's, Orange was recognized as being active in apprehending criminals. Other cities
gave the City this title. Over the years it became a recruitment slogan. It was not
geared towards the community or anywhere else. The phrase "United States of Orange" originated at
a narcotics meeting in 1972. It is a prideful thing for the police officers.The City Council
recessed to Closed Session
at 9:35 and reconvened at 9:57 p.m.16. ADJOURNMENT MOTION - Mayor Coontz SECOND - Murphy
AYES - Murphy,
Slater, Mayor Coontz, Spurgeon,
Alvarez The City
Council adjourned at 9:57 p.m.C~;
T CASSANDRA . ATHCART, CMC CITY CLERK PAGE 28 iT
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