10-27-1998 Council MinutesAPPROVED BY THE CITY COUNCIL ON NOVEMBER 10, 1998
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING October 27, 1998
The City Council of the City of Orange, California convened on October 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 INVOCATION
Given by Pastor Ed Trenner, Grace Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor pro tern Slater
1.3 ROLL CALL
PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
None NOTE: Councilman
Spurgeon and Councilman Murphy left the meeting at 6:50 p.m. to attend a
funeral memorial service. The agenda order was changed to begin with Item No.4.1 -
Reports from Mayor Coontz after Presentations.1.4 PRESENTATIONS!
ANNOUNCEMENTS! PROCLAMATIONS A proclamation was
presented to John Sleppy of the Orange Grove Masonic Lodge No.293 in recognition
of their contributions in the area of missing and exploited children.A proclamation recognizing
October 27, 1998 as NET Day was presented to the Police Department's Neighborhood
Enhancement Team for their efforts in obtaining the Community Oriented Policing
Award from Orange County Human Relations Commission. Fred Smoller,
Peggy Calvert, and Rey Regalado, representing the Orange County Human Relations
Commission, joined in the presentation.Mayor Coontz announced
the dedication opening of the sports facility at McPherson Magnet School would
be on October 28, 1998 from 12:00 noon - I :30 p.m.Employee Recognition Service Awards
were presented by the Acting City Manager to Laurie Bartel, Richard Moree,
John Warde, Ricky Anderson, James Van Dalsem, Duane Weiss, Ralph Ybarra, and
Gregory Adams.PAGE 1
CITY COUNCIL MINUTES October 27, 1998
2.PUBLIC COMMENTS Tape 475
Carole Walters, (address on file), commented she provided a request for information to
the City Manager 14 days ago relative to the removal of asbestos from the City Hall
Administration Building and whether or not the project went out to bid. How soon will
her questions be answered?
Mayor Coontz responded the City Manager is at a City Manager's Conference at this time
and staffwill get back to her on this subject.
Norm Phillips, 348 Redwood, spoke regarding his request to Council to agendize the
cable franchise fee for discussion; asked why Orange Resource Recovery Systems
ORRS) does not pay a franchise fee; and whether conflict of interest laws are violated
when COP A and the firefighters organization endorse candidates for the election.
3.CONSENT CALENDAR Tape 5805
3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council
agenda of a regular meeting of October 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.3.2 Request Council Confirmation of warrant registers dated October 8 and 15,
1998.ACTION:
Approved.3.3 Request approval of City Council Minutes, Regular Meeting, October 13,
1998.ACTION:
Approved.3.4 Consideration to waive reading in full of all ordinances on the
Agenda.ACTION:
Approved.PAGE
CITY COUNCIL MINUTES October 27, 1998
3. CONSENT CALENDAR (Continued)
AGREEMENTS
3.5 Approval of Amendment No. 2 in the amount of $12,500 to Hilton, Farnkopf and
Hobson, LLC for review of trash collection and processing rates. (A2100.0 AGR-
2852.A.2)
SUMMARY: The City has engaged Hilton, Farnkopf and Hobson, LLC to analyze and
evaluate the current rate review proposals for trash collection and processing. The scope
of work has been increased to include prior years' rate reviews.
ACTION: Approved Amendment No.2 and authorized.the City Manager to execute on
behalf ofthe City.
FISCAL IMP ACT: Funds are available in Account No. 220-5022-
426700 (Sanitation
and Sewer).REMOVED AND HEARD SEP
ARATEL Y)3.6 Contract Agreement between the City of Orange and U.S. Health Works
for pre-employment physicals and annual physical examinations, effective July
1, 1998 through December 31, 2001. (A2100.
0 AGR-3134)SUMMARY: Personnel Department is currently using the services of U.
S. Health Works Medical Groups for post offer medical examinations and drug
screening. Also, the Orange Fire and Police Departments are currently using U.S. Health
Works to conduct annual
employee physical examinations.FISCAL IMPACT: This service agreement shall not exceed $45,000 for
any fiscal year beginning on July 1 and ending on June 30 of the following year
without prior approval by the City Council. Funds have been budgeted in the following
accounts
for Physical Evaluations:
29,000 100-
1401-426400 10,
000 100-4011-
426400
6,
000
100-3021-426400 Total $45,000 Personnel Police Fire Discussion: Barbara DeNiro, (address
on file), asked how many employees the $45,000 covers? Is each employee required to
have a physical as terms of employment each year?The Personnel Director
explained $45,000 is the maximum amount, which fluctuates based on the amount of employees
processed on an annual basis. Physicals are mostly for pre-employment. Some
employees are required to have physical exams to ensure they can perform their duties. The
total amount of physicals given vary from year to year.Mayor Coontz
suggested statistics
CITY COUNCIL MINUTES October 27, 1998
3. CONSENT CALENDAR (Continued)
MOTION - Mayor Coontz SECOND -
Slater AYES - Slater,
Mayor Coontz, Alvarez ABSENT - Murphy, Spurgeon
Moved to approve the
agreement and authorize the Mayor and City Clerk to execute the contract on behalf of
the City in an amount not to exceed $45,000.00 BIDS 3.7 Award
of
Bid 989-06 to Bakersfield Well and Pump Company for repair of Well No.25 Pump. (A2100.
0 AGR-3135)SUMMARY: Well
No. 25 Pump requires replacement of the vertical turbine pump assembly and
a new 450 H.P. Electric Motor to continue operation at maximum efficiency.ACTION:
Approved
agreement with Bakersfield Well and Pump Company in the amount of $
62,421.00and authorized the Mayor and City Clerk to execute on behalf of the City.
FISCAL IMPACT:
Funds in the amount of $62,421.00 are budgeted and available in Account No.
601-8011-484101-8117 (Water
Production).3.8
CLAIMS a. Fireman's Fund on behalf of Hasenjaeger, Finley and Welsh
Properties b. Farmers
Insurance ACTION: Denied claims for damages and Application to Present a Late Claim
and referred to City Attorney and Adjuster. (C3200.
0)
CONTRACTS 3.9 Contract Change Order No. One for Handy Park Renovation. (A2100.0
AGR-3003)SUMMARY: Contract Change Order Number One in the amount of $24,177.62
for the Handy Park Renovation Project is for improvements to the interior of
the restrooms,additional concrete and other minor improvements. The change order is
within budget and 9% of the
contract amount.
ACTION: Approved.
CITY COUNCIL MINUTES October 27, 1998
3. CONSENT CALENDAR (Continued)
FISCAL IMPACT: Sufficient funds are budgeted in the following account: 510-
7021-481200-0017 (Handy Park Renovation): $297,
577.62.
TRACT MAP 3.10 Recordation of Final Tract Map No. 15519. (T4000.
0 TRM-15519)SUMMARY: TNR Development Corporation is requesting that
the City Council approve the recordation of Tract Map No. 15519. This project was
approved by Council as a Tentative Tract Map. All plans have been approved, fees paid and
bonds posted to guarantee improvements. Location: La
Veta and
Esplanade.ACTION: Approved.
FISCAL
IMPACT: None.RESOLUTIONS 3.11 RESOLUTION NO.
9033 (S4000.0)A Resolution of the City Council of the City of Orange expressing appreciation
to Raul P.Ramirez of the Public Works Department for more than 17 years of
loyal
and dedicated
servIce.ACTION: Approved.
MOTION - Slater SECOND -
Alvarez AYES - Slater, Mayor Coontz, Alvarez
ABSENT - Murphy, Spurgeon Item
No. 3.6 was removed and heard separately. The remainder of the Consent Calendar was
approved as recommended.END
OF CONSENT CALENDAR 4.
REPORTS FROM MAYOR COONTZ Tape 866 4.
1 County Proposal to build a jail in East Orange.Mayor
Coontz reported comments were made at a recent Board of Supervisor's meeting about the
possibility of building ajail in East Orange. Unfortunately, ten years ago a proposal came to the
County of Orange. At that time, the City of Orange was battling the Theo Lacy issue on the City'
s west end, which cost the City a great deal of money. The City began a program to end the PAGE
5
CITY COUNCIL MINUTES October 27, 1998
4. REPORTS FROM MAYOR COONTZ (Continued)
court battles, come up with contributions to the City, listen to the community, and protect the
citizens and businesses in that area. The restrictions the City placed on Theo Lacy were very
important to the City's future.
The City then began to battle the proposal to put a jail in Gypsum Canyon in East Orange. In
approximately 1990, with the consent of environmental and East Orange groups, the City
approved the General Plan for the development of 18,000 acres in East Orange, which would be
east of the new Eastern Transportation Corridor. The proposal included the enhancement of
Irvine Lake to be a recreational project in the future. The lands are owned by The Irvine
Company. The planning process took place 10 years.
The City will not tolerate any jail proposal that may come up in East Orange. The General Plan
on the land is the most specific General Plan that was ever put together in the State of California,
covering all the residential, commercial, and industrial aspects. It is a stand alone project that
will not hurt the City of Orange taxpayers and includes facilities for schools, fire and police, and
circulation and environmental elements. Retractions have been heard of the remarks that were
made.
Carole Walters, (address on file) commented residents were opposed to the Theo Lacy jail
expansion. How do we know City officials will listen to the residents now if the County
proposes ajail in East Orange?
Councilman Alvarez commented he was assured by Supervisor Spitzer's office that the
newspaper made an error. A study was not suggested, nor is there a proposed study, specifically
in the City's sphere of influence.
Dennis Bilodeau, Assistant to Supervisor Spitzer, commented Supervisor Spitzer recognizes the
City of Orange had shouldered its burden in terms of jail construction. He would not support the
construction of a jail in any residential areas. The Los An~eles Times did misquote him and
have retracted their story. Supervisor Spitzer is not proposing nor is there any proposal or study
going on to place ajail in East Orange or Anaheim Hills.
4.2 Questions that need to be answered regarding the EI Toro Demonstration air flights.
Mayor Coontz commented the cities of Costa Mesa, Garden Grove, Los Alamitos, Newport
Beach, Seal Beach, Stanton, and Villa Park have joined the Orange County Regional Airport
Authority (OCRAA), a support group for an EI Toro airport. The City of Orange has not joined
OCRAA because the City has questions regarding air flights, patterns, and sound.
Demonstration air flights have been requested.
Councilman Murphy commented the City passed a Resolution in 1996 in support of the concept
of an airport at EI Toro. However, the City needs to continue to monitor what the environmental
impacts might be to the City as it proceeds forward. If EI Toro airport is not built, what would
be the impact of John Wayne Airport operating 24 hours a day and the potential ofa second
PAGE 6
CITY COUNCIL MINUTES October 27, 1998
4. REPORTS FROM MAYOR COONTZ (Continued)
runway It is Council's responsibility to continue to follow, monitor and participate in the
process to make sure that the interest of the City of Orange is represented.
Mara Brandman, 7319 Equitation Way, suggested a citizens committee be part of the decision
making process for the EI Toro airport. There should be a plan to take care of both the El Toro
airport and the millennium plan.
4.3 Update on the opening of the Eastern Transportation Corridor.Tape 1129
Mayor Coontz reported on the successful opening on October 18, 1998 of the north and east
branch of the Eastern Transportation Corridor extending from the 91 Freeway to Irvine. Staff
continues to observe the corridor. The peak hour congestion is noticeably reduced on portions of
Cannon Street and the Santiago Canyon Road. There has not been a noticeable increase in traffic
on Chapman, Canyon View, and Newport. The City continues to move forward with solutions to
the neighborhood traffic problems that were addressed at the community meetings. Traffic
monitoring is being provided continually during the peak hours of 6:30 a.m. to 9:30 a.m. and
4:00 p.m. to 7:00 p.m. at already designated locations. The City will monitor and evaluate the
west leg of the corridor when it opens in early 1999.
Carole Walters, (address on file), expressed safety concerns with deer crossing the corridor.
Mayor Coontz responded the Transportation Corridor Agency (TCA) has spent millions of
dollars on environmental issues and provided passageways for the animals. The Director of
Public Works indicated the project has had the most extensive environmental mitigation of any
highway system built in the State of California, both in terms of the amount of money and the
habitat preservation relocation they have accomplished.
4.4 Announcement of a Work Study Session regarding the Plaza Preservation Project
scheduled for December 2, 1998 at 5:00 p.m., and an update on the progress of the Plaza
Committee.
Mayor Coontz reported the Plaza is the historic center ofthe City and a source of identity in civic
pride which carries on from generation to generation. The City must act now to save the historic
plaza. Mayor Coontz will fight to save and preserve the truly historic elements, fix what is
broken, restore what was lost, and enhance those areas that are not historic so they can contribute
to and not detract from the Plaza. The committee members represent a broad spectrum of deeply
rooted community organizations and are actively working with consultants and staff to assure
that the Plaza is treated right. The Council supports the Plaza Committee's efforts to help guide
Council to the best maintenance, restoration, preservation and enhancement efforts to save the
historic Plaza, but not to overlook the importance of other factors in the Plaza square, i.e. the
historic trees, flowers, fountains, sidewalks, and planters. The maintenance, restoration and
improvement efforts will have appropriate review. The City needs to look at ways to achieve
this goal, working together and arriving at the best solution for the historic plaza.
PAGE 7
CITY COUNCIL MINUTES October 27, 1998
4. REPORTS FROM MAYOR COONTZ (Continued)
There is a great misunderstanding in the community about the project. A number of articles,
fliers, and signs have been distributed throughout the City. The message on the sign reads
Don't demolish it. Polish it." This is what the goal of the City of Orange is. The Council has
not yet made a final determination on the Plaza. A study session will be held and it will come
back to council for the fmal determination.
Members ofthe Plaza Committee include:
Consultant
Orange Community Historical Society
Old Towne Preservation Association
Orange Taxpayer's Association
Orange Planning Commission
Downtown Merchant's Association
Design Collaborative
Public at Large
Bill Cathcart
Judy Schroeder, Adrienne Gladson, Alternate
Brady McDonald, Joan Crawford, Alternate
Carole Walters
Randy Bosch
Carol Collis, Lisa Ackerman
Susan Secoy
David Hart
Hank Mascola
Councilman Murphy commented no one has any intention of putting anything in the Plaza at risk
in terms of historic designation or registration. Anyone that indicates through a flier or other
means that it is Council's intent to put the Plaza at risk is misinformed. The intent is to polish
and preserve the Plaza, not to renovate or remove it.
Councilman Alvarez suggested Dan Ryan on the City staff be considered as he is recognized
statewide for his educational background and knowledge in historic preservation. Mayor Coontz
responded that although Mr. Ryan does a fine job, the community needs the confidence and
assurance that the preservation expert is someone who is not representing the City. The hiring of
a preservation consultant will not be an expensive endeavor for the City.
Randy Bosch, representing the Plaza Committee, commented key areas of discussion by the
Plaza Committee with resolution yet to be determined include:
Preserving the City's historic buildings
Drainage and settlement problems
Historic trees in the Plaza Park - Every historic tree in the Plaza Park can be saved. The only trees
that are not historic are the avocado tree and a number of brutalized Cypress around the fountain.
The
rose garden is in decline, in the shade of the historic trees. The rose garden can be restored
to healthy condition in a sunny location near the fountain, and kept in the Plaza.PAGE
8
CITY COUNCIL MINUTES October 27, 1998
4. REPORTS FROM MAYOR COONTZ (Continued)
Safety is critical for all who walk, park or drive through the Plaza - crosswalks, walkway services,
handicapped and elderly accessibility, safe parking access, and an unobtrusive safety
lighting.The
fountain tile base and restoration identification of the most historic fountain head, will enhance
it as a key point of the Plaza.Monuments
in the Plaza must be securely placed for visibility and enjoyment of the fountain,as
well as protection of the centennial plaques around the perimeter, so they can be observed and
removed from damage by the cars, but kept in place for everyone to find the ones they have
placed and share the City's history.H
pattern walks and planter curbing within the Plaza are critical and very historic. Many have
been damaged, eroded away, or badly replaced, but can be restored to be contributing areas
within the Plaza.The
National Register status must be maintained. Full review of plans by oversight agencies are
underway, as well as specialized consultants that do not seem to have a conflict.Carole
Walters, representing the Plaza Committee, said she suggested a flier be distributed for public
input on the committee's three ideas for the fountain. The individuals with the "Don't demolish
it. Polish it" signs are expressing their concern with Old Towne. The Council should put
this issue on the ballot for the vote of the people.Mara
Brandman, 7319 Equitation Way, commented the Plaza belongs to the entire City and all parts
of the City should be represented on the Committee.Mayor
Coontz noted the study session and public hearing will provide the entire community an opportunity
to address this issue.MOTION -
Mayor Coontz SECOND - Slater
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon ABST AIN- Alvarez Moved
to: 1) hire
a preservation consultant who can verify the requirements of the State historic office and the National
Register of Historic Places to be sure that everything is correct in what the proposals are before
any physical work is done; and 2) a joint study session with the Planning Commission be held on
December 2, 1998 at 5:00 p.m.NOTE: Councilman Alvarez noted
he abstained on this item due to a property conflict. The City Attorney commented if
Councilman Alvarez believed he had a financial interest, then he should have stepped down
from the dais and not participated on this item.PAGE 9
CITY COUNCIL MINUTES October 27, 1998
5.REPORTS FROM COUNCILMEMBERS Tape 2005
5.1 Mayor pro tern Slater - Request consideration for walvmg application fee to reinstate
and extend No Parking, Permit Only area to include 200 block of North Shaffer Street.
Mayor
pro tern Slater reported several years ago a neighborhood parking program was put in place
to discourage Chapman University students from parking in the residential neighborhoods.Shortly
thereafter, Renee Cahill, a neighbor on the 200 block of North Shaffer Street, requested before
the Traffic Commission to opt out of the parking program. Since the block is now inundated
with Chapman University students, Ms. Cahill would like to be put back into the program.
Ms. Cahill has indicated she is willing to pay the $300 fee to reinstate her block.The
City Attorney indicated there is no provision in the Ordinance for the Council to waive the fee.
Renee
Cahill, 280 N. Shaffer, requested Council consider reinstating the parking by permit only.It
is the performing arts staff, and the theater people that park on her street.Carole
Walters, (address on file), expressed opposition to Ms. Cahill having to pay the fee.Carolyn
Cavecche, 275 N. Shaffer, requested Council make a motion to waive the $300 fee as the
parking situation on North Shaffer is different than it was eight years ago.Charles
Gordon, 285 N. Shaffer, expressed opposition to Ms. Cahill having to pay the $300 fee.Doy
Henley, representing Chapman University, commented the parking plan has not been implemented
because of the structure opening, new students coming in, and the semester break does
not phase in. The plan will not take place until the next semester starts in early, 1999. In a very
short amount of time they will be more specific with the parking plan and the way it is going
to work.Mayor
Coontz indicated the Director of Community Development has been asked to look into the
operation plan of the parking structure at Chapman University and other changes to the campus
parking plan, especially with the structure opening; who would be using the structure;public
use of the structure; and the situation with student parking.MOTION -
Slater SECOND - Alvarez
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon, Alvarez Moved to direct staff
to move ahead with expediting the inclusion of the 200 block of North Shaffer back into the
permit parking zone and that a $200 fee be charged for same.PAGE 10
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
5.2 Mayor pro tem Slater - Consideration for one time sale of safe and sane fireworks by
Orange non-profit organizations in the City for the millenium celebration. (A2500.0
Fireworks)
Mayor pro tern Slater reported on August 24, 1998, AB 2090 was signed by the Governor which
provides a special one time option for cities to permit the sale of safe and sane fireworks between
9:00 a.m. on December 26, 1999 through January 1,2000. If Orange adopts an Ordinance to that
effect, Council would have the authority to restrict the hours of use. The City's current
ordinance prohibits the sale and discharge of safe and sane fireworks between July 1 and July 4
each year. The City Attorney has stated the one time option would not conflict with the ballot
referendum which prohibits the sale of safe and sane fireworks on Independence Day. Next
year's millennium celebration promises to be an exciting, once in a 1000 year celebration. The
sale and discharge of safe and sane fireworks would allow the City to have more (legal) options
and freedom to celebrate this rare event as well as California's 150th birthday. The adoption of
the one-time ordinance would also make Orange proactive in planning the celebration. It
would be naIve to assume that there won't be illegal fireworks discharged. The one time sale is
a positive approach to the problem, while penalties against users of illegal fireworks must
be strongly enforced. This is how Orange citizens can celebrate with the utmost safety. It will
raise money for many local nonprofit, charity and education groups. Additionally, brush fire risk
with the cool damp weather and the likely start of the rainy season should be greatly reduced
or minimal versus higher risk summer conditions. Mayor pro tem Slater urged Council'
s consideration of the proposal and instruction be given staff to prepare the necessary
ordinance.Mayor Coontz commented on how long it took the City to achieve the ban on fireworks.
Many devastating fires have occurred in East Orange. The millennium celebration with
the participation of the City of Orange can have the same or a better fireworks show than was
held on July
3rd.Councilman Spurgeon expressed his desire to reserve his opinion on fireworks until a
report comes back to
Council.Councilman Alvarez asked that staff be directed to provide information on educational
material that could be given out to the public. Mayor pro tern Slater added that input would be needed
on how many and which nonprofit organizations would like to
participate.SPEAKING IN
FAVOR:Lorna Deshane, 205
River Nick Lall, (address on
file)PAGE
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
Reasons: People will set off fireworks anyway - let them do it legally this time. It is a privilege to
residents. The millennium is a special occasion which occurs once in 1,000 years. People should
be trusted to be responsible enough with fireworks. Fires have occurred in East Orange since
fireworks were banned in the City.SPEAKING
IN OPPOSITION:Judy
Schroeder, 1041 N. Elizabeth Place Barbara
DeNiro, (address on file)Reasons:
The long fight to ban fireworks. Concern for children's safety. A unique firework celebration
could be held by the City.SPEAKING
IN NEUTRAL POSITION:Mara
Brandman, 7319 Equitation Way, commented she was evacuated twice during fires in East Orange.
People from all areas of the City should be involved in providing input on this issue.MOTION -
Slater SECOND - Alvarez
AYES - Murphy, Slater,
Spurgeon, Alvarez NOES - Mayor Coontz Moved
to direct staff to
come back to Council with a report and provide other plans for the millennium celebration.Mayor Coontz explained
her no
vote on this issue is a matter of principal. The City does not need to convey the idea
they might even be doing this. The centennial celebration of the City of Orange, which had participation from
all over the community, took almost a year of planning.What the City will experience
with pyrotechnic companies is a lot of pressure over a period of time, money, promises, etc.5.
3 Councilman Alvarez - Consideration
of an investigation regarding the propriety of a mass mailing of a letter dated
October 12,1998 and sent to Santiago Hills Homeowners and signed by the Mayor. (S3500.A.
6) Tape 3243 NOTE: Mayor Coontz indicated the City
Attorney has advised her not to be present during this item. This is a political and
not a Council issue. This advice was given by the City Attorney to Councilman Alvarez and herself. Mayor Coontz
stepped down from the Council dais.PAGE 12
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
COUNCILMAN ALVAREZ COMMENTED FOR THE RECORD: "The reason I put this on the agenda was
back in June of 1998, Proposition 73 had been passed concerning mass mailers and how they
would be handled. I want to begin, before I go any deeper in this, to assure the public that this is
not, as the Mayor said, a political issue. This is an issue of taxpayer material being used for
private use as opposed to the public use. I have had meetings with the City Attorney, and that is
why I have brought it forward. Let me summarize very quickly for you that a mass mailing had
taken place to homeowners out in East Orange Santiago Hills, as I had mentioned, Crawford
Canyon, and that a letter had been signed by the Mayor which is in direct conflict with
Proposition 73. Proposition 73 it states that there is three tests that is needed to be met in order
for a mass mailing violation to take place. One is that over 200 copies would have to have been
sent out to homeowners. I had learned through the help of Mayor pro tern Slater that 1700 letters
were sent out to homeowners. Thus, it violates Proposition 73. The second test. If you turn to
the next page where it's marked Page No.3, go down to the 4th paragraph, second from the
bottom. If I can read it for the record. It says definition of "features" also provides that the item
distributed may not include the elected officer's photograph or their signature. Therefore, even if
the document was developed independently from the elected officer whose name is referenced in
the text of the article, that mailing may not include their signature or their photograph. That is
the second test under Proposition 73 that was violated. If you look at the letter that I provided
you. These are copies of the letter that was sent out. A couple of things I want to point out that
are problems with the letter, other than the signature. If you look at the top, it is City stationary
marked Director of Finance. If you look down towards the bottom that it is signed by the Mayor,
thus.. .."
The City Attorney interjected and advised Councilman Alvarez that it is somewhat unfair for him
to conclude that violations of mass mailings have occurred with the Mayor not present to defend
herself. The item is to consider whether or not an opinion should be requested from the FPPC.
He disagrees with a lot of the conclusions that Councilman Alvarez has drawn. In particular, that
the mailer was for private vs. public use. The City Council voted 5-0 to direct the City to
send the notice. It was public information. Perhaps there was a violation of the mass mailing
rules relative to whether or not public funds were used to finance the mailer. In this case, City
staff prepared the letter and asked the Mayor to sign it. It was suggested that Councilman Alvarez
go over what occurred and not draw any conclusions as to whether there is a violation or
not.Councilman Alvarez continued: "Let me just point out some other things that are on
the envelope. The letter is marked October 12, 1998. The action taken by the Council was June
23rd,almost four months before that letter was actually sent out. I want you to turn to the next
page which shows a copy of the envelope itself. The envelope also has some red flags to it as well.
I made a color copy of the envelope so that you could see that it was, in fact, a City
envelope which was one of the red flags that was brought to my attention. The second red flag was
post meter on the right hand side where it was postmarked in the City of Temecula. Also, at
the bottom, just the scanning numbers and bar codes to show that it was a mass
mailing.PAGE
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
Again, under Proposition 73, that it appears, if I can say that City Attorney, it appears that there
may have been a violation. There is also Code 4.54 which discusses the use of City stationary.
Through the help again of Mayor pro tern Slater, I tried to determine either what the staff time
costs would be to design the letter or the cost ofthe envelopes that were given to the bondholder.
We reached a preliminary number of 198. That is important, because again, if you look in
Proposition 73, the threshold is $50 of public monies. Anything above that appears to be a
violation.
The reason why I am bringing this up is I wanted to bring it to our Council's attention that it
appears that an impropriety has taken place. I think I have demonstrated by showing you what
was mailed out there is a possibility. It is my feeling that public policy should always be that the
Mayor or any Councilperson should never really mail any correspondence over 200 copies, and
that was really what Proposition 73 was aimed at. And that as a general rule of government, that
it shouldn't be used, because past history shows in this County, that has been used by elected
officials, and they have been found to have violated the law.
What I propose for the Council, at this point, is to put the City Manager in a little bit of a
precarious position. And that is, (excuse me, the City Attorney), to direct the City Attorney, to
again, look at the evidence that I have provided, as well as the staff, and to draft a response to
this that would in the second motion, this report would be sent up to the Fair Political Practices
Commission (FPPC) and that they would advise us on what we would do from that point."
The City Attorney indicated he could put together a fact pattern but does not feel he should be
doing the investigation. Council should consider whether these violations are going to be of
significance or not. He indicated he thinks every candidate for office has violated the law at
some point or another, either through a conflict of interest or through a campaign violation.
Those items are brought to their attention and are corrected.
The following facts were presented by the City Attorney: "On June 2300 the City Council
authorized the issuance and sale refunding of the bonds for the assessment districts. At the same
meeting, the City Council, directed by a 5-0 vote, to send notice to the affected homeowners
of the lowered assessments. Staff then drafted a letter for the Mayor's signature, notifying
the residents of the lowered assessments on behalf of the City Council. The letter was sent to
the City's consultant who lives in Temecula (that's why it is postmarked Temecula), for mailing
on August 28, 1998. About one month later, staff learned the consultant had failed to mail
the notices and he was directed to send the letters again. I believe the City Council received a
letter from the consultant to apologize for the time lapse. The letters were then sent on October 12th.
I believe all Councilmembers received a copy of that letter. The cost of the mailing will be
paid for from the cost of the bond issuance, and those City funds will be used. Apparently, a
resident in East Orange raised the question as to whether this letter should have gone out under
the Mayor's signature and brought it to the attention of Councilman Alvarez. Even the cost of
the envelopes are going to be paid out of the cost of the issuance of the bonds. There are a
few issues that need to be reviewed. But in any case, if the City Council wants to have those
issues PAGE
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
reviewed, I think I would prefer that the direction be that I just request an opinion from the
FPPC, and I would essentially be sending them a fact pattern, and then they could opine on it."
Mayor pro tern Slater commented errors may have been made, but did not believe that staff did
anything wrong intentionally. However, ignorance of the law is no excuse for these types of
things to be done. It deserves some kind of facts prepared that could be forwarded to the FPPC
to see ifthere are any issues or violations.
Councilman Murphy expressed support for a fact pattern being sent to FPPC for their opinion. It
was suggested a policy or guidelines be brought back for mailings that go out under any
Councilmember's signature. Councilman Spurgeon expressed support for the fact pattern being
sent to the FPPC.
Carole Walters, (address on file), expressed support in having the report sent to the FPPC.
MOTION - Alvarez SECOND -
Spurgeon AYES - Murphy,
Slater, Spurgeon, Alvarez ABSENT - Mayor Coontz
Moved to: 1) direct
the City Attorney to develop a fact pattern concerning this issue as explained;2) send a copy
of the minutes; and 3) include a ruling on the bond proceeds concerning the legality of this mass
mailing.MOTION - Alvarez SECOND - Murphy
AYES - Murphy, Slater,
Spurgeon, Alvarez ABSENT -
Mayor Coontz Moved to direct the
City Attorney to send
a copy of the fact finding pattern to the City Council,City Manager, and to the Fair Political Practices
Commission, once the investigation has been completed for a final disposition from them, and
a ruling on the bond proceeds as to their disposition of being either public funds or non-
public funds.5.4 Councilman Alvarez - Consideration of the
City Council to send a request to the Orange County District Attorney's Office for a
formal update on the progress of the trash investigation and the City Manager investigation being conducted
by their office.Councilman Alvarez requested a written request be sent
to the Orange County District Attorney's Office asking for an update, being confidential or
otherwise, which would be left up to the City Attorney. He wants a written response from the
District Attorney's office so there is a written record.PAGE 15
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
The City Attorney responded: "We can do that. Just a couple of comments. I believe in the past
that I have informed the City Council that the District Attorney's office policy is not to comment
on pending investigations. To confirm this, I called the Deputy District Attorney who is heading
up the trash investigation last week. He confirmed that they would not comment - that they could
not comment. And one of the reasons is that all the facts and documents are under seal of the
court by their request. And they believe that if they did comment, it might constitute a contempt
of court. I know that despite the significant impact of this case to the City, and the concerns
expressed over the lack of information, the District Attorney's office position is that we are
just another member of the public making another request. So, they certainly wouldn't send us
anything confidentially. I think when and if criminal charges are filed, it may be of some significance
to the District Attorney's office to show that they have done this investigation free of
any interference from any outside influences. And, I believe that the time being devoted by the
District Attorney's office will prove to be the best thing in the long run. I think it will ensure that
the persons who are responsible will be charged and convicted. And also it will best result in
the City getting their funds back. We can go ahead and make the request, if you would like,but
again, I think their position is going to be, and I was informed that their position is going to be,
that they can not comment on the case. And if that has some significance or some benefit to let
the public know that this is essentially out of our hands and the District Attorney is handling it,
then we can certainly do that."Mayor
Coontz commented the Council has spoken to the issue and it is out of their hands. Have you
called the District Attorney's office yourself for the progress? The City Attorney replied:They
are not likely to share too much information with me either. I think one of the arguments that
has been posited by Jeff Hambarian's attorneys in some of the hearings is that the District Attorney
is leaking information. And, I don't know exactly how he established a nexus, but this is
one of the reasons they have been seeking to return the $1.1 million that was confiscated. So,that
is one of the reasons why they are not able to share much information with me."Mayor
Coontz confirmed from the City Attorney that the District Attorney's office has to protect the
criminal investigation. They don't want the investigation to fall apart by accusations that certain
information is being shared with some, but not with others.Mayor
pro tern Slater expressed his support for requesting information from the District Attorney'
s office.Councilman
Spurgeon and Mayor Coontz noted the information has already been asked for through
the City Attorney. Councilman Spurgeon further commented that the City Attorney has asked
for the information from the person at the District Attorney's office who is in charge of the investigation
and understands they have no comment. The City Attorney responded that is correct.
Carole
Walters, (address on file), expressed concern that facts are covered up until after the election.
PAGE
16
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCIL MEMBERS (Continued)
Shannon Tucker, 556 E. Culver, commented she does not believe this is a political issue and
expressed support of a letter being written to the District Attorney's office. The No.1 question
being asked from citizens is regarding this issue. Who is handling the investigation? Is it Guy
Ormes now?
The City Attorney responded Guy Ormes is not handling the case. The facts surrounding this
case and the documents are sealed under court order. For the District Attorney to divulge
information contained in the records would be a contempt of court.
Mara Brandman, 7319 Equitation Way, commented questions regarding this issue have been
asked for a year.
MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to direct
the City Attorney to make another call to the District Attorney's office and ask that their response
be put in writing.NON-AGENDA ITEM
Councilman Alvarez
directed the City Clerk to agendize for the November 10, 1998 Council meeting - Consideration
of the City Council to look at the business license retroactive payments that are being
asked of the Orange County Children's Care Association.5.5 Councilman
Murphy - Request Council to consider co-sponsoring New Years event with The Block.
Tape 4600 Councilman Murphy reported
the Mills Corporation has asked the City to participate in a New Years Eve event
they have put together for a safe place to celebrate New Years Eve. This is an opportunity to provide
support through public safety, recreation, etc. on a measured level and an opportunity for a
cooperative effort next year as a potential site for a millennium type celebration.Councilmembers expressed
support
of the idea. Mayor Coontz directed the City Manager explore further the
cost of personnel participation in the event, etc.Barbara DeNiro, (address
on file), expressed concern with City costs involved.MOTION - Murphy SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez PAGE 17
CITY COUNCIL MINUTES October 27, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
Moved to: 1) direct the City Manager that the City does want to participate in the New Years
Event with The Block at Orange; and 2) bring back the finalization of potential costs involved
pertaining to strictly supplying support and safety personnel and related capabilities.
NOTE: Councilman Spurgeon and Councilman Murphy were excused at this time to attend a
funeral memorial service.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS Tape 4780
6.1 Investment Oversight Committee Quarterly Report for the Quarter ending
September 30,1998. (OR1800.0.27.16)
The Finance Director presented the report. Mayor Coontz noted that after the bankruptcy, the
Council suggested the City discontinue investing in the Local Agency Investment Fund (LAIF),
a State pool. Since then, the Investment Advisory Committee and Investment Oversight
Committee have decided it is a very safe pool. It was asked what the restrictions were on those
investments? The Finance Director explained the City is limited to $20 million in LAIF at this
time. LAIF would allow the City to go up to $60 million. The City has an extremely
conservative investment policy that restricts City investments to treasuries, agencies and LAIF.
Councilman Alvarez asked ifit is the City's policy to review the brokers the City is working with
to insure their companies are solid? The Finance Director explained the City only deals with
primary dealers, the top firms found on Wall Street.
MOTION - Slater SECOND -
Alvarez AYES - Slater,
Mayor Coontz, Alvarez ABSENT - Murphy, Spurgeon
Moved to receive and
file.7.ADMINISTRATIVE REPORTS Tape
4989 7.1 Treasurer's
Report for the period ending September 30,1998. (C2500.F)The Finance Director presented
the report.MOTION - Slater SECOND - Mayor
Coontz AYES - Slater,
Mayor Coontz, Alvarez ABSENT -
Murphy, Spurgeon Moved to receive and
file.PAGE 18
CITY COUNCIL MINUTES October 27, 1998
7. ADMINISTRATIVE REPORTS (Continued)
7.2 Report from the Economic Development Director regarding the Affordable Housing
Agreement by and between the Orange Redevelopment Agency and Peter D. Bonello and
Jennifer G. Bonello regarding 136-150 West Mayfair Avenue. (A2100.0
AGR-3136)SUMMARY: The owners have requested a 30-year, three percent loan of $231,
930 for two fourplexes located at 136-150 W. Mayfair Ave. If approved, the
Agency would provide Housing Set-Aside funds of $55,800 to rehabilitate both fourplexes and $
176,130 as permanent financing for the fourplex located at 144-150 West Mayfair Avenue. In
return for the assistance, all eight of the units would remain affordable to very low
income households for a 30-year period.FISCAL IMP ACT: Housing Set-Aside funds in the
amount of $231,930 are available to be
appropriatedto Account No.
921-9809-485802-0000-19845 (Southwest Housing Set-Aside/Mayfair Loan Account).The Director of Economic
Development reported the loan will not be a residual receipt loan. The Bonello's are obligated to pay every month on
the loan for the life of the loan at a 3% interest rate. There will be a second
Deed of Trust on the fourplex the Bonello's already have a mortgage on. The first Deed of
Trust will be
the mortgage for the Agency's assistance with the acquisition and rehabilitation.
Mayor Coontz commented between Orange Housing Development Corporation and the City's Affording Housing Department that the
City has made a lot of progress, especially in the last few
years. The success of rehabilitation is important to reduce the crime rate.Mayor pro
tern Slater commented he would rather see money
spent on rehabilitating existing apartments that are depressed than building new ones.Councilman Alvarez asked
what the loan-to-value is on the property? Who is the housing being
provided for? What guidelines are followed on a loan-to-value on fourplexes like this?
The Director of Economic Development explained the units will be for family housing and the rents will be
restricted to the 60% area. Five units will be at $560/month; two units will be 575/month;
and one unit will be $585/month. A
memo will be directed to Council with more definitive figures and their relationship to the
value.Mayor Coontz commented that 20%
of redevelopment monies have to be used for housing or they go back to the State.Barbara
DeNiro, (address on file), asked how the Agency can provide a
3% loan? Is the rent charged for 30 years? What is a very low
income household?The Director of Economic Development explained the Agency determines the income that can be generated, what
the expenses are, and discern how much can be paid back on a loan. Ms.
DeNiro will be provided with a rental income chart from the Department of Housing
and Urban
CITY COUNCIL MINUTES October 27, 1998
7. ADMINISTRATIVE REPORTS (Continued)
HUD levels that are published each year. The loan will be 3% because staff decided that is what
was needed to make the project happen.
RESOLUTION NO. 9032
A Resolution of the City Council of the City of Orange approving an Affordable Housing
Agreement by and between the Orange Redevelopment Agency and Peter D. Bonello and
Jennifer G. Bonello regarding 136-150 West Mayfair Avenue and making certain
findings.MOTION - Slater
SECOND - Alvarez AYES -
Slater, Mayor Coontz, Alvarez ABSENT - Murphy,
Spurgeon Moved that Resolution
No. 9032 as introduced, be adopted and same was approved and adopted by the preceding
vote.8. REPORTS FROM
CITY MANAGER - None 9.LEGAL AFFAIRS Tape
5770 9.1 ORDINANCE NO.
22-98 (A2500.0 Massage Therapy)An Ordinance of
the City Council of the City of Orange, amending Sections 17.04.020,17.04.032,
17.18.030 and 17.18.060 of the Municipal Code of the City of Orange relating to massage establishments.MOTION -
Slater SECOND -
Mayor Coontz AYES -
Slater, Mayor Coontz NOES -
Alvarez ABSENT - Murphy, Spurgeon Moved
that Ordinance No.
22-98 be read
by title only and same was set for second reading by the preceding vote.10. RECESS TO THE
MEETING OF THE
ORANGE REDEVELOPMENT AGENCY PAGE 20
CITY COUNCIL MINUTES October 27, 1998
Mayor Coontz and Councilmembers recognized the following speaker:
Roger Young, (address on file), expressed concern with public safety. He addressed an incident
that occurred in the City approximately five weeks ago in the area of Tustin and Palm Street
involving the police pursuit of a car theft suspect and the cancellation of the police helicopter by
the Watch Commander. Approximately three years a judge was shot at 800 E. Lake Street. A
helicopter was requested and it took one hour to get permission to have a helicopter come from
the City of Santa Ana. Why doesn't the City spend the money to have a helicopter come in when
incidents like this occur?
Mayor Coontz commented she has never heard of this before and directed the Acting City
Manager to have the Police Chief provide a report. In addition, Mayor pro tern Slater asked that
the Police Chief provide a brief report on the two incidents Mr. Young addressed and what the
Police Department's policy is on calling in helicopters.
11. RECESS TO CLOSED SESSION
URGENT ITEM
The City Attorney indicated a matter needs to be added that arose out of a court hearing on
Friday that involved the City's eminent domain case against the Walker's - property on LaVeta.There
is a need to discuss settlement offers and proposals that are being made.MOTION -
Coontz SECOND - Slater
AYES - Slater, Mayor
Coontz, Alvarez ABSENT - Murphy, Spurgeon Moved
that this matter arose
subsequent to the posting of the agenda and there is a need to take immediate action.The City Council
recessed to
a Closed Session at 7:31 p.m. for the following purposes:a. Conference with Legal Counsel -
anticipated litigation. Significant exposure to litigation pursuant to Government Code Section
54956.9(b) (one potential case). Contract withORRSb. Conference with Legal Counsel
pursuant
to Government Code Section 54956.9 -existing litigation. OCM Litigation - City of Orange,
et al. v. Alabama Treasury Advisory Program, et al. - Los Angeles Superior Court Case
No. BC 106 461.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.NOTE: The City Council reconvened to regular session at
8:34 p.m.PAGE 21
CITY COUNCIL MINUTES
12. ADJOURNMENT
MOTION - Coontz SECOND -
Slater AYES - Slater,
Mayor Coontz, Alvarez ABSENT - Murphy, Spurgeon
The City Council adjourned
at 8:35 p.m.ti{}7Jr/~CASSANDRA . ATHCART,
CMC CITY
CLERK October 27,
1998 PAGE
22