05-27-1997 Council MinutesAPPROVED BY THE CITY COUNCIL ON JUNE 10, 1997
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
May 27, 1997
The City Council of the City of Orange, California convened on May 27, 1997 at 4:30 P.M. in a
Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilman Slater
1.2 ROLL CALL
PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
None 1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz
announced the C.O.P.S. Expo at the Mall of Orange on Saturday, June 7,1997 from
10 a.m. -7 p.m. and Sunday, June 8, 1997 from 11 a.m. - 6 p.m.Employee Recognition Service
Awards were presented to Ray Bocanegra" Darlene Chandler, Tom Taulbee,
Debbie Klein, Linda Berquist, and Neil Millward.C2500.J.4.
18)SergeantJim Anderson
introduced and recognized members of the Citizen Police Academy, Graduate Class
No.3.1.4 PROCLAMATIONS -
None 2. CONSENT CALENDAR 2.
1 Declaration of
City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular
meeting of May 27, 1997 at Orange Civic Center, Main Library,Police facility at 1107
North Batavia and 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
confirmationof warrant registers dated May 13 and 16, 1997.ACTION: Approved.PAGE 1
CITY COUNCIL MINUTES May 27,1997
2. CONSENT CALENDAR (Continued)
2.3 Request approval of City Council Minutes, Regular Meeting, May 13, 1997.
NOTE: Mayor pro tem Slater abstained from voting due to his absence at the May 13,
1997 meeting.
ACTION: Approved.
2.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
AGREEMENTS
2.5 Request Council approve an agreement with the State of California Department of
Transportation (Caltrans) to receive reimbursement from the State for Department of
Public Works staff time associated with the 1-5 Fwy. Widening Project. (A2100.0
AGR-
2829)FISCAL IMP ACT: None. The City will be reimbursed up to $20,000 over the next
4
years.ACTION: Authorized the Mayor and City Clerk to execute on behalf ofthe
City.2.6 Request Council approve a Promotional License Agreement with the Orange
Mall Development Associates for the C.O.P.S. Expo '97 to be held on June 7th and 8th,
1997.A2100.0AGR-
1372.I)FISCAL
IMPACT: None.ACTION: Authorized the Mayor and City Clerk to execute on behalf of
the City.REMOVED AND HEARD SEP
ARATEL Y)2.7 Request Council approve an agreement with Century 25 Theatres in the
amount of 123,000 for construction of a storm drain located at 1501 W.
Katella Avenue.FISCAL IMP ACT: Funds are budgeted in the 1997/98 and 2003/04 Seven
Year Capital
Improvement Program.The City Attorney reported that Century 25 Theatres submitted a request
for continuance of the item to June
10, 1997.MOTION -
Spurgeon SECOND - Murphy
AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION:
Moved to continue this item to the June 10, 1997 Council meeting.PAGE
2
CITY COUNCIL MINUTES May 27, 1997
2. CONSENT CALENDAR (Continued)
AMENDMENTS
REMOVED AND HEARD SEP ARATEL Y)
2.8 Request Council support OCTA proposed amendment to the Local Streets and Roads
Component of the Measure M Expenditure Plan and communicate this action to the
OCTA Board of Directors for inclusion in the public hearing record. (OC1300.D.1)
FISCAL IMPACT: None.
Mayor Coontz commented the amendment to Measure M does not coincide with OCTA's
possible extension of Measure M as a further tax measure. The proposed amendment is
to the existing program.
MOTION - Spurgeon SECOND -
Mayor Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.APPROPRIATIONS
2.9
Request
Council approve a proposal to appropriate $4,500.00 in grant money awarded to the Orange Police
Department by the Amateur Athletic Foundation to sponsor the youth soccer league, and
to appropriate $4,500.00 from Account No. 100-4001-264950 (Grants)and
transfer to Account No. 100-4001-443700 (Community Support). (C2500.
K)FISCAL IMPACT:
None.ACTION:
Approved.
BIDS 2.10 Request Council approve plans and specifications and authorize advertising for bids
for waterline relocation in conjunction with the 1-5 Freeway
widening (W-578).S4000.
S.3.7)FISCAL IMP ACT: Funding for this project in the amount of $788,655 is
proposed in the fiscal 1997-98 budget in Account No.
601-8041-
484101-8320 -
Pipeline Improvements-I-5 Freeway.ACTION: Approved.2.11 Request Council award Bid No. 967-28
for the recoating of the exterior of Steel Reservoirs No. 5 and No. 9 in the amount
of $46,860 to the lowest
responsible bidder,
CITY COUNCIL MINUTES May 27,1997
2. CONSENT CALENDAR (Continued)
FISCAL IMPACT: Funds in the amount of $46,860 are budgeted in Account No. 601-
8041-484101-8222 - Reservoirs No.5 and No.9
Repainting.ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe
City.2.12 Request Council approve conceptual plans prepared by CathcartlBegin & Associates
Inc.,for the basketball court, tot lot and restroom building at Belmont Park, and authorize
staff to advertise for bid of construction. (C2500.M.4.
18)FISCAL IMPACT: Funds are budgeted for FY 1996/97 in Account No.
510-7021-485100-0750 (Belmont Park
Improvements): $250,
000.
ACTION: Approved.CLAIMS 2.13 CLAIMS FOR DAMAGES
FROM: (C3200.0)a.
The Fieldstone Company
b. Rene Zenteno
c. Carmen Castellanos d. Louis
Zenteno, a minor e. Estrardo
Zenteno, a minor f. Carlos
Zenteno, a minor ACTION: Denied claims for damages and referred to City
Attorney
and Adjuster.CONTRACTS 2.14 Request Council a) approve a transfer of $95,000
from 310-6058-475100-1328 (CDBG ADA Access Ramp Project)
to 310-6058-483400-1381 (CDBG Glassell Street Storm Drain Project),
b) appropriate $30,000 from Unappropriated Reserves, Fund 530-36000
Drainage District fund) to Account No. 530-5011-483400-1381 (Glassell Street Storm Drain) and, c)
award a contract in the amount of $273,000 to Steve Casada Construction Co.,
Inc. Bid No. 967-35, Project No.
D-22, Glassell Street Storm Drain from Adams Avenue to Katella
Avenue. (A2100.0 AGR-2832)FISCAL IMP ACT: Budgeted funds are available
for the recommended transfers.ACTION: Approved transfer and
appropriation of funds and authorized Mayor and City Clerk to execute on behalf of the City.
2.15 Request Council approve a contract in the amount of $50,282
with Holmes & Narver,Inc. for consulting services to provide a Project Study
Report for the proposed
interchange at
CITY COUNCIL MINUTES May 27, 1997
2. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Funds are available for the recommended transfers.
25,141 262-5011-483300-3818 (Rt. 55 Fwy.
at Meats Ave.)25,141 284-5011-483300-3809 (
Rt. 55 Fwy.at Meats Ave.)ACTION: Authorized Mayor and City Clerk to
execute
on behalf of the City.GRANTS 2.16 Request Council approve a Homeowner Participation
Program Grant in the amount of 2,000 for Case #624 and authorize the
Finance Department to prepare a
warrant.C2500.G.1.3.1)FISCAL IMP ACT: Funds are
available in the Homeowner
Participation Program
Account Fund No. 316-6053-427800-1221.ACTION: Approved.2.17 Request Council approve
a Homeowner Participation Program Grant in the amount of 397.50 for Case #630
and authorize theFinance Department
to prepare a warrant.C2500.G.1.3.1)FISCAL IMP
ACT: Funds are available
in the
Homeowner
Participation Program Account Fund No. 316-6053-427800-1221.ACTION: Approved.LOANS 2.18Request Council approve
a Deferred Payment Loan in the amount of $20,450 for Case 618 and authorize
the Finance Department to prepare a warrant. (C2500.G.1.3.3)FISCAL IMPACT:
Funds are available in the Deferred
Payment Loan
Fund 315 and will be recorded
under Account No. 315-6052-811901-0000.ACTION: Approved.REMOVED AND HEARD SEP ARATEL Y)2.
19 Request Council approve a loan from the City of Orange to the Orange Redevelopment
Agency in the amount of $1 ,527,597 regarding acquisition of surplus properties located at the north/
west corner of West La Veta Avenue and South Main Street under the terms and conditions
set
forth in
CITY COUNCIL MINUTES May 27,1997
2. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: The first year of interest on this note, in the amount of $91,656 has
been included in the fiscal year 1997-98 budget as an expenditure under debt service
in the Economic Development Department (922-9811-464201) and interest
income in the General Fund (100-0000-251100). In each of the two subsequent
years of this three year note, appropriations for interest in accordance with the note,
as well as any principal payments to be made, would be part
of the annual budget process.The Finance Director explained the property was purchased by
the General Fund a year ago. Much of the property was to be used for a
street widening project. The surplus property was to be purchased from the City by
the Agency for economic development purposes. The City adopted a Resolution
which authorized a Cooperation Agreement between the City and the Agency for the purchase.
The Promissory Note formalizes the
payment arrangements for the
purchase.MOTION - Mayor
Coontz SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez
ACTION:
Approved.RESOLUTIONS 2.20 RESOLUTION
NO. 8767 A Resolution of the City Council of the City of Orange implementing a
CalPERS Pre-Tax payroll Deduction Plan for Service Credit purchases. (11200.0.
3.4)
ACTION: Approved.2.21 RESOLUTION
NO. 8775 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 northwest corner of Orange Street and Almond Avenue. (C3300.
0 CUP-2146-96)Conditional Use Permit
2146-96,
Applicant: Gary Mead ACTION: Approved.
2.22 RESOLUTION NO. 8776 A Resolution of the City Council of the City of Orange
temporarily closing a section of Chapman Ave. for
construction activity. (
S4000.S.
CITY COUNCIL MINUTES May 27, 1997
2. CONSENT CALENDAR (Continued)
2.23 RESOLUTION NO. 8777
A Resolution of the City Council of the City of Orange adopting the City of Orange
Emergency Management Plan and approving submittal of the Orange Emergency
Management Plan to the State of California Office of Emergency Services by July 1,
1997. (C2500.E.6)
Discussion: Barbara DeNiro, (address on file), requested an explanation of this item.
The Interim Fire Chief responded the City is required to adopt the standardized
Emergency Management Plan in order to be funded in the event of a disaster. The
Emergency Operations Center has to operate under the Plan guidelines.
ACTION: Approved.
2.24 RESOLUTION NO. 8781
A Resolution of the City Council of the City of Orange vacating public service easement
at 1620 North Tustin Street. (S4000.S.4)
ACTION: Approved.
2.25 Request Council approve a Quitclaim Deed to Allan Fainbarg and Sara Fainbarg, as Co-
Trustees of The Fainbarg Trust, for the S.A.V.I. easement located at 1620 N. Tustin
Street. (Refer to Resolution No. 8781.) (D4000.0)
FISCAL IMPACT: The $75.00 fee is to be deposited in Account No. 271-
36000-Unappropriated Reserves for Special Gas Tax
Fund.ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe
City.REMOVED AND HEARD
SEPARATELY)2.26 RESOLUTION NO.
8782 A Resolution of the City Council of the City of Orange finally accepting the
completion of a certain public works and improvement; Bid No. 967-08; S.P.
3166; Hillcrest Contracting Inc.; Santa Fe Depot Parking Lot. (
A2100.0)Mayor pro tem Slater expressed concern and disappointment with the
newly installed light poles at the Santa Fe Depot parking lot; requested an explanation on why
the poles do not match the existing light poles at the depot; stated that he hopes it doesn'
t happen again in the future; and reported that one light pole is broken
and tilted.The Director of Public Works explained that during the course of
construction the contractor had requested a substitution on the light poles due to the long
delivery time.The request was reviewed and subsequently approved by staff as the poles were
found to be in conformance with the specifications. The project consultant performed
an analysis of the substitution light poles and also found the poles to be
in conformance.
CITY COUNCIL MINUTES May 27,1997
2. CONSENT CALENDAR (Continued)
In response to questions raised by Council, it was indicated the illumination levels ofthe
new light poles are equal to or better than the originally specified lights. It would cost
approximately $100,000 to replace and install new matching poles. The damaged pole
addressed by Mayor pro tem Slater will be corrected.
The City Manager suggested a lighting standard be adopted to allow consistency of
lighting in Old Towne.
MOTION - Mayor Coontz SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.REMOVED
AND HEARD
SEPARATELY - FOR DISUCSSION OF THIS ITEM REFER TO REDEVELOPMENT AGENCY
MINUTES ITEM NO. 6.1)2.27 RESOLUTION NO.
8783NOTE: Director Slater abstained
on this item due to a property interest at the 400 block of North Lemon.A
Resolution of the
City Council of the City of Orange approving an Owner Participation Agreement between the Orange
Redevelopment Agency and Chapman University providing, among other things,
for the development of a minimum 700 space parking structure and the acquisition
by the Agency ofthe right to use 350 spaces therein, in common, with Chapman University (
total of $3,250,000 from Southwest and Northwest Project Areas). (A2100.0)
MOTION - Mayor Coontz SECOND -
Spurgeon AYES - Murphy, Mayor
Coontz, Spurgeon, Alvarez
ABSTAIN - Slater ACTION: Approved.SPECIAL EVENTS 2.
28 Request Council
approve request
from Hugs
for Health Foundation for temporary suspension of on-street parking restrictions on both
sides of South Batavia Street from La Veta Avenue to Palmyra Avenue on Wednesday,
June 11, 1997 for a "Hug Holiday Extravaganza" at Hillhaven Convalescent Center. (S4000.S.
3.1.1)FISCAL IMPACT: None.ACTION: Approve.PAGE 8
CITY COUNCIL MINUTES May 27, 1997
2. CONSENT CALENDAR (Continued)
MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Mayor pro tem
Slater abstained on Item Nos. 2.3 and 2.27. Item No.2. 7 was continued to the June
10, 1997 meeting. Item Nos. 2.8,2.19,2.26 and 2.27 were removed and heard separately. Item No.
2.27 was heard subsequent to Redevelopment Agency Item No. 6.1.The remaining Consent
Calendar items were approved as presented.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS
4.1 Status Report
from Councilman Murphy on the Orange County Sanitation District proposed rate changes.Councilman
Murphy reported there
continues to be substantial rate increases for District Nos. 1 and 11. More debt
is being financed and rate increases are scheduled for the next ten years,rather than five years
as are the other districts. Councilman Murphy indicated he will continue to vote against the rate
increases based on the reasons outlined at the May 13th Council meeting.The Board will vote
on the proposed rate changes at the Sanitation District Meeting on May 28th.Mayor Coontz confirmed the
need to send a message to the Sanitation District regarding District No.1, which includes
the Town and Country complex, and realignment/consolidation of the districts as was discussed
at the May 13th Council meeting.5. REPORTS FROM BOARDS,
COMMITTEES, AND COMMISSIONS - None 6. ADMINISTRATIVE REPORTS 6.1
Report from the
Director of Community Development on future status of unincorporated islands within the City
of Orange. (Continued from May 13, 1997).The Director of Community Development
reported there are approximately 17 County islands ranging in size, located throughout
the City of Orange. All of the islands are developed with residential uses, with the exception
of the R. J. Noble and Water District properties and the commercial/industrial portions ofthe Olive
and El Modena areas. There are approximately 2475 dwelling units within the islands.
The largest island is the North Tustin area east of Hewes Street that includes about 675 units.
The population of all the units is approximately 7175 residents.PAGE 9
CITY COUNCIL MINUTES May 27,1997
6. ADMINISTRATIVE REPORTS (Continued)
Annexations may increase the City's service costs and do not always provide a comparable
increase in revenue. Commercial and industrial uses provide the most revenue from a revenue
perspective to the City, however, there are not many of these uses in the County islands. The
Master Tax Agreement between the City and County has a great impact on the cost and revenue
balance. The County has recently established a subcommittee of Board Members and city
representation that will look at issues facing the County and cities. City Manager Dave Rudat
has been active on the staff working group subcommittee which is looking at County service
costs associated with each of the islands. A task force within the City Manager's Association
will look at specific issues facing islands that contain County redevelopment project areas.
The procedure for annexation requires application to the Local Agency Formation Commission
LAFCO) and a protest hearing before the City Council. The percentage ofland owners
protesting the annexation determines whether an election is required or the annexation
proceedings are terminated.
Pending Assembly Bill (AB694), sponsored by Assemblyman Curt Pringle, could have an effect
on the unincorporated county islands. AB694 would require county LAFCO's to approve island
annexations of75 acres or less, without the need for a public hearing. Assembly Bill 1502
AB1502) addresses the County islands which are in redevelopment project areas and would
allow those areas, upon annexation, to change from a county redevelopment area to a city
redevelopment area.
Mayor pro tem Slater suggested a letter in support of AB694 be sent to Assemblyman Curt
Pringle and that Council consider the appointment of a citizens committee of individuals that live
in unincorporated areas who are interested in annexing to the City of Orange. The citizens
committee could provide a cost benefit assessment from a taxpayer's perspective; be an advocacy
group for an incorporation with the State and County; promote citizen interest in annexation
issues; provide information to the Council; and educate the residents in the unincorporated areas.
The City Manager reported the County is undergoing a study that looks at the costs of providing
services from the County's point of view. Every island in the County will be viewed differently.
The major County islands have been pledged to solve part of the bankruptcy problem and the tax
increment revenue goes to the bankruptcy, further complicating and diminishing any economic
incentive for a city to annex that island. Tax increments have been pledged in the El Modena
area. As more information is gathered, a report will be presented to Council.
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to 1)
direct staff to monitor State Legislative and County of Orange activities related to the ability of
the City of Orange to incorporate County Islands in the future; 2) a letter of support of AB694 be
sent to Assemblyman Curt Pringle and 3) receive and file the staff report.PAGE 10
CITY COUNCIL MINUTES May 27, 1997
6. ADMINISTRATIVE REPORTS (Continued)
6.2 Report from the Director of Community Development on criteria for future
Downtown special events. (C2500.G.2.0)
NOTE: Councilman Alvarez indicated he has a possible conflict of interest and excused himself
from the dais on this issue.
The Director of Community Development reported the proposed criteria would include events
that close the Plaza and the public streets to vehicles and does not include filming and events
which do not close the public streets. The proposed policy has been reviewed by the Downtown
Merchants Association (Business and Professional Association), Downtown property owners
groups and the Chamber of Commerce. The primary goal is to limit the number of events
closing the Plaza and public streets during the year and to provide a once a year approval process
for the events. Over the past year, the Plaza has been closed down approximately eight times for
special events. The proposed policy would allow street closure ofthe Plaza to not exceed a
cumulative total of 12 Fridays, Saturdays and/or Sundays per calendar year nor more than 20
days total. There would be exceptions to special events that arise throughout the year
Mayor Coontz commented a letter was received under Orange High School letterhead from Judy
Sollee expressing concerns. (Letter on file in the City Clerk's office). It was indicated that the
City needs to be flexible with events that will be positive for the City of Orange.
Councilman Murphy agreed with the proposed policy for special events to be approved once a
year and suggested a clause be added to the policy for special events that could arise throughout
the year.
MOTION - Mayor Coontz SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon ABSTAIN - Alvarez Moved
to table consideration
for 60 days to obtain input from all groups involved, downtown business owners, and representatives
from various City departments that have the most interest in the events.6.3
Report from
the Interim Fire Chief recommending the City agree to become a participating agency with the
Orange County Health Care Agency, Certified Unified Program Agency (CUP A),
for hazardous waste management pending a review of an MOU and formal adoption of
a resolution. (A2100.0)The Interim Fire Chief
reported the City applied to the California Environmental Protection Agency (CALIEPA) to become
a Certified Unified Program Agency (CUP A). The application was denied; appealed by
the City; and the appeal was denied. CUP A is a single agency that regulates all six parts
of the hazardous waste program. The City currently does four of the programs in the Fire
Dept. The State Water Resources Board regulates above ground storage tanks and the Orange
County Health Care Agency regulates hazardous waste generators. The intent of the Senate
Bill passed in 1993 was to consolidate all the agencies into one.PAGE 11
CITY COUNCIL MINUTES May 27, 1997
6. ADMINISTRATIVE REPORTS (Continued)
It was indicated that some cities that had expressed opposition had joined with the Orange
County Health Care Agency and others had not. Letters of support have been sent on Senate Bill
659, sponsored by Sher, to start the process over and allow cities, like the City of Orange, that
have been involved since the beginning, to reapply to become CUP A. By joining with the
County, the City has the ability to reapply to CALIEPA to become a CUPA and continue to
manage the current programs. The annual revenue loss to the City by going with the County is
approximately $20,000 at a 90% collection rate and $10,000 at a 95% collection rate.
MOTION - Spurgeon SECOND -
Mayor Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to authorize
the Mayor and City Clerk to execute on behalf of the City an agreement to become a Participating
Agency with the Orange County Health Care Agency CUP A.6.4 Report
from the Finance Director regarding background information and recommendations relating to
the Investment Advisory Committee.The Finance Director
summarized the results of a survey done on citizen participation on Investment Advisory Committees
in various Orange County cities. The City's Investment Advisory Committee functions
very similar to others in the County. Staffs recommendations explained in detail
in Attachment B ofthe staffreport on file in the City Clerk's office) are as follows:1) Delineate
more
specific background qualification for candidates.2) Specify residency
requirements.3) Include a
provision for City Council notification for 3 or more absences of a committee member in a
twelve month period.4) Include a
provision for conflict of interest.5) Clarify specific
operational activities that the committee may not be involved in.6) Provide for
staggering ofterms of committee members to facilitate continuity within the committee.7) Extend
the
current committee terms until August 31, 1997, to allow time for advertising,qualification, and appointment
of the new members.Mayor Coontz commented
the formation ofthe original committee was discussed on December 13, 1994, just
after the bankruptcy, and formed February 14, 1995. Concern was expressed that in today's
world, anyone in a major firm must get permission to be involved in community activities; the difficulty
is getting people to serve on the Committee when they cannot act as a broker for the
City; and the proposed residency requirements.Mayor pro tem
Slater suggested that serious consideration be given to increasing membership to five members, or
language that states "up to five members, but not less than three"; and that language be added
that "preference be given to Orange residents".PAGE 12
CITY COUNCIL MINUTES May 27, 1997
6. ADMINISTRATIVE REPORTS (Continued)
Councilman Spurgeon commented it is important to give preference to Orange residents and
Orange business owners. However when it comes to the investment and safeguarding of the
City's money, qualifications of committee members are very important.
Councilman Alvarez commented the committee should be increased to five members.
Suggested Councilmembers appoint a Committee member rather than advertise for applicants;
the focus of the Committee be reevaluated; asked ifthe scope of the Committee will be
broadened to include the new Fiscal Agent position; requested more information be provided
from staff on committees in cities that the City of Orange does joint ventures with, Anaheim,
Tustin and Irvine as well as the County; discuss with the County their investments to see if it is
in line with the City's and apply it to the committee's focus; and suggested that the Investment
Advisory Committee report directly to the City Council.
Councilman Murphy supported five qualified members on the committee; have an independent
interview prior to Council's concurrence ofthe committee; and suggested Council not be
involved in the interview process.
Council concurred the interview committee consist of the Finance Director, the City Manager
and three citizens-
at-large.Nick Lall, 6231 Mabury Avenue, spoke in support of the Investment
Advisory Committee reporting directly to the
City Council.MOTION - Mayor
Coontz SECOND - Alvarez
AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved
to continue to the June 10, 1997 Council meeting.6.
5 Treasurer's report for the period ending April 30, 1997. (C2500.F)The
Finance Director reported the Cash and Invested Balance was $117.1 million. Cash receipts exceeded
cash disbursements by approximately $4.7 million. The excess receipts were due to the receipt
oflarge semi-annual property tax revenues received in April. The excess proceeds were
invested in Treasury bonds. The Local Agency Investment Fund Balance was $14.1 million; the
Portfolio Yield to Maturity was 5.54%. There was a slight increase of 8/1 Oths of 1 % in market
values; market values were 99.64% of book value. The Weighted-Average to Maturity was 1.
28
years.MOTION - Slater
SECOND - Murphy AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to
receive and file.PAGE 13
CITY COUNCIL MINUTES May 27,1997
6. ADMINISTRATIVE REPORTS (Continued)
6.6 Report from the Director of Public Works on the disposallborrow site adjacent to
Santiago Creek at Cambridge Street. (C2500.M.17)
The Director of Public Works reported there has been an informal agreement with Fairhaven
Memorial Park for over twenty years concerning the dumping of clean fill material on City-
owned property adjacent to Santiago Creek. Over the years, regulatory requirements by various
governmental agencies have made this operation inappropriate within a wetlands area and staff is
proposing that the practice be discontinued.
MOTION - Slater SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file.7. REPORTS FROM
CITY MANAGER - None 8. LEGAL AFFAIRS 8.
1 ORDINANCE NO.
3-97 An Ordinance of
the City Council of the City of Orange amending Chapter 12.28 of the Orange Municipal Code
regarding street tree plantings, removals and maintenance.A2500.0 Trees)
Barbara DeNiro, (address
on file), expressed opposition to the tree ordinance and presented a list of questions relatives
to trees. (Letter on file in the City Clerk's office).Mayor Coontz referred
Ms. DeNiro to the Director of Public Works to set up an appointment for Ms. DeNiro to
meet with the Street Division Manager. The Director of Public Works indicated a response will be
provided to Ms. DeNiro' s questions in writing.The Director of
Public Works recommended the language "a certified arborist from the community and a
Council representative" be added to Section 12.28.120 of the Orange Municipal Code, as
it had been inadvertently omitted.MOTION - Slater SECOND -
Mayor Coontz AYES -
Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez Moved that Ordinance No. 3-97
as amended, be set for an amended first reading; same was set for an amended first reading
by the preceding vote.PAGE 14
CITY COUNCIL MINUTES May 27, 1997
8. LEGAL AFFAIRS (Continued)
8.2 ORDINANCE NO. 12-
97 An Ordinance of the City Council of the City of Orange amending Chapter 2.20 of
the Orange Municipal Code relating to Officers' Performance Bonds. (A2500.0
City
Employees)MOTION - Murphy
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Ordinance No. 12-97 have second reading waived and be adopted and same was passed
and adopted by the preceding vote.8.
3 ORDINANCE NO. 13-97
An Ordinance of the City Council of the City of Orange amending Section 17.06.020 of the
Orange Municipal Code and approving the reclassification of property associated with the
Chapman University Campus, including addition of the former Orange Unified School
District Headquarter's Site to the University Campus. (Z1500.0 ZCG-
1187-97)NOTE: Mayor pro tem Slater abstained from voting due to property interest on the
corner block of North
Lemon Street.MOTION -
Murphy SECOND - Mayor Coontz
AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN -
Slater Moved that
Ordinance No. 13-97 have second reading waived and be adopted and same was passed
and adopted by the preceding vote.8.
4ORDINANCE NO. 14-97
An Ordinance of the City Council of the City of Orange upholding the recommendation of
the Planning Commission and approving the Third Amendment to the Chapman College
Specific Plan. (C2300.J)
Chapman University
NOTE: Mayor pro tem Slater abstained from voting due to property interest on the comer block
of North Lemon Street.
PAGE 15
CITY COUNCIL MINUTES May 27, 1997
8. LEGAL AFFAIRS (Continued)
MOTION - Murphy SECOND -
Mayor Coontz AYES - Murphy,
Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Slater Moved
that Ordinance No.
14-97 have second reading waived and be adopted and same was passed and adopted
by the preceding vote.9. RECESS TO
THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. RECESS TO
THE MEETING OF THE INDUSTRIAL DEVELOPMENT AUTHORITY 11. ORAL
PRESENTATIONS
Barbara DeNiro, (address
on file), presented a letter for the record relating to tree issues which was read by
Mayor Coontz. (Letter on file in the City Clerk's office).12. RECESS - NOTE:
CLOSED SESSION WAS CANCELLED.a. Conference with Legal
Counsel - anticipated litigation. Significant exposure to litigation pursuant to Government Code Section
54956.9(b ) (one potential case).b. 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.7:00 P.M. SESSION
13.1 INVOCATION Eric Kaelberer,
Immanuel Lutheran Church
13.2 PLEDGE OF ALLEGIANCE
TO THE FLAG Led by Councilman Slater 13.
3 ANNOUNCEMENTS Mayor Coontz
announced that Orange
City News reporter Ian Fried is leaving to work for the Orange County Business Journal.
13.4 INTRODUCTIONS Comments were
made by Heather
Myers, Miss Orange 1997. Retired City Clerk,Marilyn Jensen, introduced the Miss
City of Orange 1998 Contestants.13.5 PROCLAMATIONS - None PAGE
16
CITY COUNCIL MINUTES May 27, 1997
13.6 PRESENTATIONS - None 14.
PUBLIC HEARINGS 14.
1 JOINT PUBLIC HEARING, 1997-98 FISCAL YEAR BUDGET, CITY OF
ORANGE:
Time set for a joint public hearing with the Orange Redevelopment Agency to consider the
adoption of the 1997-98 Fiscal Year Budget and adopting a limitation on certain
appropriations in accordance with Article XIII of the State Constitution. (C2500J.1.
1)The City Manager submitted the budget proposal for the period July 1, 1997 through June
30,1998. Subject to testimony received at the public hearing, adoption of the documents insure
that the City has established a set oflegally 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
Program.The proposed budget represents the second year of a three year improvement plan
for restructuring the City's budget so as to enhance the already strong financial position, to
redirect City resources to better serve the citizens and businesses of the community, to help maintain
the focus on product and service improvements, and to reinvest in certain aspects of the public'
s infrastructure which had been deferred during the
recession.The 1997-98's proposed expenditure budget totals $119.73 million. The operating portion
of the budget, which excludes debt service payments, redevelopment property tax
increment pass through agreement payments to other public agencies, and capital improvement
projects, totals 86.4 million, which is a reduction of 3.8%, from the $89.8 million operating budget
for 1996-97. Significant changes in
expenditures include:The implementation of a new agreement with the Orange County
Transportation Authority.This agreement, entered into by the City Council on November 19, 1996, provides
for the equal exchangeof $1.35 million in County gas tax funds for City general funds
to implement one of the provisions of State legislation addressing the Orange County bankruptcy.
An equal reduction in Public Works' general fund expenditures on gas tax eligible items
is proposed.A 24% reduction in the City Attorney's Office budget, thanks to the anticipated
conclusion of current major litigation involving outside
legal counsel.A 19% reduction in the City Clerk's Office budget, thanks to 1996-97 of
election costs that will not be
repeated in 1997-98.An 18% reduction in the City Treasurer's Office budget, due to
a
reduction in consulting servIces.A 26% reduction in the Information Management budget, now entering
its smaller third and
final major upgrade phase.A 12% reduction in the Community Services Department operating
budget, due to the planned January 1998 construction closure of the Main Library to
conduct a major remodel.Because of this proposed $1.05 million remodel, the overall
Library portion of the Community Services Department budget is
increased 2%
CITY COUNCIL MINUTES May 27,1997
14. PUBLIC HEARINGS (Continued)
A 37% reduction in the operating portion of the Economic Development Department budget.
This is due to the winding down of the planning phases of several large projects, such as The
Mills, in 1996-
97.A significant reduction in property tax pass through payments, which is the result of
the County Auditor's interpretation of the impact of State legislation on pass through
agreements with the County. This will help offset continued projected declines in assessed valuation
in the Southwest Redevelopment Project Area. We project that these declines in
assessed valuation will stop in Fiscal Year 1998-99 with the development of The Mills Project,
and its associated beneficial impacts on
neighboring properties.The 1997-98 estimated revenues, excluding transfers, totals $103.71
million. General fund revenues are projectedto total $50.58 million, a decrease $351,000, or 0.7%
from the current year, which is due primarily to the conclusion of a $1.37 million refund
from the California Public Employees Retirement System (PERS) in 1996-97 which will
not continue into 1997-98.Excepting this one-time item, general fund revenues are projected
to increase by $1.01 million,or 2%. The largest general fund revenue is the City's one cent
share of the sales tax. General sales tax revenues are projected to total $19.68 million, up 2.
8% over the current estimate of 19.15 million for 1996-97. The second largest general fund revenue
is the City's share of the property tax. The City's general fund property tax revenue for
1997-98 is projected to total $9.45 million, up 1% over the current estimate of $
9.35 million for 1996-97. These property tax projections do not assume any
changes in the State's property tax distribution laws.Internal servicefund revenues are projected to
decrease 20%, from $7.37 million in 1996-97 to 5.9 million in 1997-98, due
to a combination of factors, including a policy change where the City will now be crediting all interest
revenues in these funds to the general fund,
and adopting a reduction in inflation factor charges for vehicle depreciation.Redevelopment fund revenues are
projected to decrease nearly 10%, to $8.83 million, which is primarily due to
continued declines in assessed valuation, mostly in the Southwest Project Area,as well as to reduced
interest earnings on smaller
cash balances due to expenditures of bond proceeds on proj ects.Recommended transfers for 1997-
98 total $4.04 million. The transfers are for the purposes of seeding
a new computer replacement fund, providing sufficient funding for required debt
service payments of the Redevelopment Agency, providing funding for major capital improvement projects such as the
Main Library remodel and the replacement of the mechanical system at the Civic
Center Complex,
and to account for loans for Community Development Block Grant program purposes.The proposed $50.58
million general fund budget is balanced with no tax, rate, or fee increase proposals. The
proposed 1997-98 general fund budget is 2.
9% lower than the 1996-97 general fund budget of$52.12 million.
The Organizational Transition Plan (OTP) process continues from last year to take advantage of position vacancies
as they occur. OTP's goal is reduce costs and increase services by cutting
higher level full-time positions in
favor of
CITY COUNCIL MINUTES May 27, 1997
14. PUBLIC HEARINGS (Continued)
The budget proposes a total of 616 full time and elected positions for 1997-98, and 97.23
full time equivalent part time, temporary and seasonal positions. Full time city employment
per one thousand residents is at its lowest level in decades, proposed at 5.04 full time
City employees per one thousand
residents.The City will increase contract services where private providers can provide quality
services at a lower cost than City personnel. In addition to a proposed $24.2 million
capital improvement budget, where projects are entirely put out to bid, the operating
contractual services budget for FY 1997-98 is $17.2 million. The budget includes
increasing contract services for overflow building inspection and plan check services, park
mowing operations,and the YMCA's summer aquatics programs at Orange
High School.The budget proposes establishment of a new Computer Replacement Fund to allow
the City to buy new computers in a timely manner, helping to reduce staffing, to improve
turn around times, and to provide improved access to
public information.The budget also addresses several long-needed maintenance items
deferred during the recession. The most significant of these is the reconstruction of the
mechanical and air conditioning systems in the
Civic Center Complex.City employees not represented by the police and fire associations have
been working a reduced, 36 hour work week since September 1992. This "temporary"
program was adopted at a time when the State of California diverted millions in recurring city
revenues to other public agencies to balance its own budget. Even though none of these funds
have yet been returned to cities, the 1997-98 budget provides for an end of the
work furlough program on September 14, 1997. Concurrent with the end of the furlough program,
the City will expand its public service hours by 12.5%, from 80 hours every two weeks to
90 hours every two weeks. For nearly the last five years, City Hall has been open Monday
through Thursday 7:30 A.M. to 5:30 P.M., and closed every Friday. Effective Friday September
26, 1997, City Hall will be open 7:30 A.M. to 5:30 P.M. Monday through Thursday
and every other Friday.MAYOR COONTZ
OPENED THE PUBLIC HEARING.THERE BEING NO SPEAKERS, MAYOR COONTZ
CLOSED THE PUBLIC HEARING.Councilman Alvarez expressed concern regarding funding for
the Senior Citizen Center;suggested the Senior Center be a separate line item in future budgets;
and requested the City Manager provide a report in July or August on the effectiveness of
the seismic retrofit program
which sunsets in June.The City Manager responded there has been no funding reduction for
the Senior Center. The Senior Center has and will continue to receive $211,000 which is given
to the Center annually.There are approximately $86,000-$87,000 of other off-agenda
items in the Community Services budget that supports the Senior Center. After discussion of revenues
raised by the Senior Center,the City is looking for them to be creative and self-
sustaining, while this budget continues to balance against the youth programs provided
by this community. The Community Services budget has been reduced by $25,000, and direction has been
given to the Director of Community Services to find ways to stretch program
dollars for
CITY COUNCIL MINUTES May 27,1997
14. PUBLIC HEARINGS (Continued)
Mayor Coontz indicated a goal needs to be pursued to work more closely with the Senior Center
for an understanding of the value of dollars that are spent in capital improvement program funds
and in the budget.
Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, complimented the City Council, the
City Manager, and Community Services Department staff, for meeting the needs of the youth in
the community.
RESOLUTION NO. 8779
A Resolution of the City Council of the City of Orange adopting said City's Budget for the
Fiscal Year 1997-98 and relating to transfers of funds between and within
appropriations,transfers between funds and additional
appropriations.MOTION - Mayor Coontz
SECOND - Spurgeon AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to
approve Resolution No. 8779 approving and adopting the Fiscal Year 1997-98 Budget.RESOLUTION
NO. 8780 A
Resolution of the City Council of the City of Orange adopting the appropriations limits for
the Fiscal Year 1997-98.
MOTION - Slater SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve
Resolution No. 8780 adopting the Gann Appropriations limit of $72,001,522 for fiscal year
1997-98.Adopt a
finding that the portion of the budget subject to the Gann limit is within the limit.MOTION - Spurgeon
SECOND - Mayor Coontz
AYES - Murphy, Mayor Slater,
Coontz, Spurgeon, Alvarez Moved to make a finding
that the portion of the budget subject to the Gann limit is $40,558,759,and therefore within the limit.
Approve the Seven Year Capital
Improvement Program.PAGE 20
CITY COUNCIL MINUTES May 27, 1997
14. PUBLIC HEARINGS (Continued)
MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve
the Seven Year Capital Improvement Program.15. PLANNING AND
ENVIRONMENT - None 16. ORAL PRESENTATIONS Norm
Phillips, 348 Redwood,
expressed opposition to Section 9.16.020 of the Orange Municipal Code which prohibits the
drinking of alcoholic beverages in public places. (A2500.0 Alcoholic Beverages)Mayor Coontz directed
Mr.
Phillips to provide the City Clerk's office a copy of his document which will be copied
and provided to the City Council, the City Attorney, and the City Manager.Carole Walters, 534 N.
Shaffer, expressed disgust with Council's approval of financial assistance to Chapman University for
the parking structure; and asked if anything has been done about the empty railroad box cars.
17. ADJOURNMENT MOTION - Slater
SECOND - Alvarez
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon,
Alvarez The City Council adjourned at 8:07
p.m. in memory of Charles Spurgeon McCandless.J;au~~~CASSANDRA . ATHCART, CMC CITY CLERK
PAGE 21