06-24-1997 Council MinutesAPPROVED BY THE CITY COUNCIL ON JULY 8, 1997.
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING June 24, 1997
The City Council of the City of Orange, California convened on June 24, 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 Alvarez
1.2 ROLL CALL
PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
None 1.3
PRESENTATIONS! ANNOUNCEMENTS! INTRODUCTIONS Resolution No.
8770 was presented to Sergeant Juan A. Marrujo of the Orange Police Department commending
him for more than twenty-eight years of loyal and dedicated service. (
C2500.J.4.18)The
following employees were recognized by the City Manager for their years of service with
the City: Robert Lobato, Keith Marshall and Chief John Robertson.1.
4 PROCLAMATIONS A
proclamation was presented to Gary Wann, Director of Community & Library Services and
Rosanne Miller, Library Services Coordinator commending Partners in Reading and the
Orange Public Library Adult Literacy Program.2.
CONSENT CALENDAR 2.
1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda
of a regular meeting of June 24, 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.
2Request Council confirmation of warrant registers dated June 10 and 13, 1997.ACTION:
Approved.PAGE
1
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
REMOVED AND HEARD SEP ARATEL Y)
2.3 Request approval of City Council Minutes, Regular Meeting, June 10, 1997.
The City Clerk requested clarification of Council's intent on Urgent Item No. 2.24 of the
June 10tl1 minutes.
MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Coontz, Spurgeon, Alvarez Moved to add
the urgent request to the Consent Calendar and approve the recommendation from the
Chief of Police to retain a consultant to assist with the investigation of the
trash haulers and appropriate $36,000 from the unappropriated reserves of the
General Fund to provide accounting services to the Police Department.Mayor Coontz requested
clarification of a statement made by Mayor pro tem Slater on Page 9 of
the June 10th minutes.The City Attorney
commented what Mayor pro tem Slater read was accurate, i.e. that salaries ODS and
ORRS officer's were receiving were 6%, 11 % and 13%. It might have been perceived that
staff permitted excessive percentages to be included as officer's salaries. It is
clear that only 5.5% was includedin the rate study. The rest of the officer's salaries were paid
from revenues outside ofthe City. In no way were the rates of the residents in the
City of Orange affected.Mayor pro tem
Slater responded that the information quoted was from the records. If it was inferred that
they were definitely paid that amount, the only correction was that he definitely did not
feel that staffhad done anything in that regard in paying them more than 5.5%.
It was noted that, in light ofthe fact that he doesn't feel that anything is known for sure,
he did not want to retract his statements. It was noted that minor typographical changes be
made to Page 21 and Page 25 of the minutes.MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez Moved to continue the minutes to
the July 8, 1997 meeting.2.4 Consideration to waive reading
infull of all ordinances on the Agenda.ACTION: Approved.PAGE 2
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
AGREEMENTS
2.5 Request Council approve agreement between the City of Orange and the Orange County
Public Facilities and Resources Department for contract administration of the seismic
retrofit of three bridges: Garden Grove Blvd. at the Santa Ana River (Bridge No. ORA
55C-0046), Orangewood Avenue at the Santa Ana River (Bridge No. ORA
55C-0050)and Ball Road at the Santa Ana River (Bridge No. ORA 55C-0159) as
designated by the Federal Highway Administration and the State of California. (
A2100.0 AGR-2846)FISCAL IMP ACT: The County will prepare the final
plans, specifications and cost estimates, for which Federal-State funding and City
funding are available as follows:5,000 - 272-
5011-483300-3239 (Bridge Seismic Retrofit) Reimbursed 2,500 -
272-5011-483300-3239 (Bridge Seismic Retrofit) City Expense ACTION: Authorized Mayor and
City Clerk to execute on behalf of the City.2.6 Request Council approve
Agreement No. 12-315 with the State of California Department of Transportation (
Caltrans) to receive reimbursement from the State for local street improvements
needed to accommodate detour plans
associated with the I-51N Freeway widening project. (A2100.0 AGR-2847)FISCAL IMPACT:
The City will be reimbursed up to $131,700 for this project.ACTION: Authorized
the Mayor and City Clerk to execute on behalf of the City.2.7 Request
Council approve the first amendment to the Metro Cities Fire Authority Joint
Powers Agreement for Fire Communications and designate the City Manager as the voting member
and the Senior Assistant to
the City Manager
as the alternate board member. (A2100.0 AGR-2603.1)FISCAL IMPACT: None.ACTION:
Authorized the Mayor and City Clerk to execute on behalf of the City.
2.8 Request Council approve the amendment to Financial Agreement D96-170
between City and County of Orange for Handy
Park ConcessionlPicnic shelter improvements in the amount of$115,000. (A2lO0.0
AGR-2737.1)
FISCAL IMP ACT: Funds are budgeted in Account 5lO-7021-481200-00 17, Handy
Park Renovation, $
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
2.9 Request Council approve the agreement between the City and Orange Elderly Services,
Inc., to provide senior citizen services in the amount of$211,000. (A2lO0.0
AGR-0974.
M)FISCAL IMPACT: Funds are budgeted for FY 1997/98 in Account
100-7041-426700 Contract
Services), $211,000.ACTION: Authorized the Mayor and City Clerk to execute
on behalfofthe City.2.10 Request Council approve an agreement with Arthur Andersen
for additional auditing services in connection with the Police investigation of
Orange Resource Recovery Systems and Orange Disposal Services. (A2lO0.
0 AGR-2775.A)FISCAL IMP ACT: Funds are budgeted and
available
in 220-
5022-
426700 (Sanitation Fund).ACTION: Approved.APPROPRIATIONS 2.11 Request Council appropriate $1,500 from
the Asset Forfeiture Fund to provide specialized training for
the Police Forensic
Specialist. (C2500.
K)
FISCAL IMPACT: None.ACTION: Approved.BIDS 2.12 Request Council approve plans and specifications
and authorize advertising for bids for D-126, Community Development
Block Grant storm drain improvements on Glassell from Palm to Sycamore Ave. and Palm from
Glassell to Center St.; SP 3205, street improvement at intersection of Maple and
Orange St. Estimated
cost is $403,000.C2500.M.17)FISCAL IMP ACT: Funds are
budgeted in the Capital Improvement
Program and available in the following accounts:
64,952 - 310-6056-483400-1819 (CDBG
Storm Drain)30,000 - 3lO-6057-483400-
1819 (CDBG Storm Drain)106,990 - 3lO-
6058-483400-1819 (CDBG Storm Drain)lO9,417 - 3lO-6059-483400-1819 (
CDBG StormDrain)
311,359
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
ACTION: Approved plans and specifications and authorized advertising for bids for D-
126 and SP 3205.
2.13 Request Council approve plans and specifications and authorize advertising for bids for
Sewer Improvements on Flower Street from Chapman Avenue to La Veta Avenue and
Chapman Avenue from Flower Street to Eckhoff Street (S-190). Estimated cost for
this project is $530,000. (C2500.M.
3)FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program
Account:506,915 - 520-5011-483200-5544 (
Sewer Deficiency Upgrade)ACTION: Approved plans and specifications and authorized advertising for
bids for the
Sewer Improvements (S-190).2.14 Request Council authorize advertising for bids for
future demolition and right-of-way clearance in connection with the La Veta/
Glassell critical intersection project at 205 through 235 W. La Veta Avenue, 495 S. Olive Street
and immediate demolition at 127 E.La Veta Avenue, subject to the Historic
District Guidelines. Estimated cost for this project
is $165,000. (C2500.M.16)FISCAL IMP ACT: Funds for this project are
budgeted
and available in the following accounts:809,040 -
271-5011-483399-3017 (City Gas Tax Fund)
185,724 - 271-5011-483300-3017 (City Gas Tax Fund)NOTE: Mayor pro tem
Slater abstained
on this item due to a property interest.ACTION: Approved.2.15 Request Council
authorize purchase of eight exhaust filtration systems for four rescue unitsand four fire engines in the amount
of $71,845.32, and waive the bid process as Ward Diesel Systems, Inc.
is a
single vendor/provider for the exhaust filtration system.C2500.H)
FISCAL IMPACT: Funds are budgeted in Capital Outlay Accounts 720-
5023-471301-2507Diesel
Exhaust Filters ($
31,
905.00) and 125-3015-471301-0000 Furniture &Machinery ($39,940.32).ACTION: Approved.CONTRACTS 2.16 Request
Council award a contract to Marden Susco in the amount
of $42,
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Sufficient funds have been allocated in the following accounts:
40,061.77 - 601-8041-484lO1-8320 (pipeline Improvements at
1-5Fwy.)2,164.38 - 600-8011-424101 (Repairs
to Building And Equipment).ACTION: Authorized Mayor and City Clerk to execute
on behalf ofthe City.2.17 Request Council award a contract in the amount of $49,385 to
Joseph C. Truxaw and Associates, Inc. for street improvement plans for The City
Drive from Medical Center Drive to Dawn Way and Manchester Avenue from Chapman
Avenue to The City
Boulevard. (A2lO0.0 AGR-2849)FISCAL IMP ACT: Funds in the amount of $840,796 are
budgeted in the CIP and available in the
following account: 284-5011-483300-3235 (Measure M).ACTION: Authorized Mayor and City
Clerk to execute on behalf of the City.2.18 Request Council award a contract to Paradigm
Imaging Group in an amount not to exceed 46,000 for the scanning of
design drawings to digital format. (A2lO0.0 AGR-2850)FISCAL IMP ACT: Funds in the
amount of $
46,000 have been appropriated in Account No. 100-5032-422301.ACTION:
Authorized Mayor and City Clerk to
execute on behalf ofthe City.REMOVED AND HEARD SEP ARATEL Y)2.19 Request Council award a contract
with CRW Associates in the amount of $99,845.00 for
purchase of an Automated Permit Management Software System for Building, Code
Enforcement,
Planning and Public Works Department. Bid No. 967-23. (A2100.
0 AGR-
2840)FISCAL IMPACT: Funds are available in Account No. 780-1601-470000-9640,
DP Upgrade Project.NOTE: Councilman Murphy abstained
from voting due to a potential conflict with his employment and excused
himself from the dais.The Assistant to the City Manager reported Business Records Corporation (
BRC) has requested three specific
items (included in
the motion) be
met to staffs satisfaction, prior to execution
of the contract.
MOTION - Slater
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
Moved to 1) approve the contract with CRW Associates with a recommendation that the
following issues be resolved to staffs satisfaction: a) return of hardware; b) performance
on the City's network; and c) the procedure for disputed invoices, prior to execution of
the agreement; and 2) authorize the Mayor and City Clerk to execute on behalf of the
City.
2.20 Request Council award a contact with LaserFiche Document Imaging Software and
related services for the Police Department in the amount of $49,913 to Compulink
Management Center, Inc. (A2lO0.0 AGR-
2851)FISCAL IMPACT: Funds are available in the Police Department's FY 96-
97, Account No. 780-4011-475100-2231 (Information
Systems Fund, Police Administration, Other
Capital Outlay, Computer Upgrade Project).NOTE: Councilman Murphy abstained from this item due to
a
potential conflict with his employment.ACTION: Authorized Mayor and City Clerk to execute
on
behalf of the City.GRANT 2.21 Request Council receive InFoPeople Grant from
the California State Library (Federal Library Services and Construction Act funds) in the amount of$
5,000 to purchase twopublic
access Internet workstations. (C2500.I)FISCAL IMPACT: None. This grant award will augment
the library'
s
Internetservices.ACTION: Approved.RESOLUTIONS
2.22 RESOLUTION NO. 8795 A Resolution of the City Council of the City of
Orange expressing appreciation to Jackie Wayne Brotherton of the Orange Public Works
Department and commending him for more than 28 years ofloyal
and dedicated
service. (C2500.
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
SPECIAL EVENTS
REMOVED AND HEARD SEP ARATEL Y)
2.23 Request from Mr. Norm Phillips to consume alcoholic beverages by one or more
individual(s) while on his front yard, front porch and driveway. Mr. Phillips is requesting
an extension of the normal seven-day special event period, until December 31,
2000.FISCAL IMPACT: The applicant has paid the required $37.50 application fee for
a special event
permit.Mayor Coontz reported Mr. Phillips requested his item be postponed for
approximately two
months.Mayor pro tem Slater commented that he spoke with Mr. Phillips and he agreed
to postpone the matter if it was looked into. Mayor pro tem Slater and
Councilman Spurgeon will meet with Mr. Phillips to discuss the
issue.MOTION - Spurgeon
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to
postpone the item for approximately two months.2.24
Request from Pacific Bantam! Austin Car Club to reserve parking on the northeast quadrant of
the Plaza on July 26, 1997 to display approximately 20 antique cars in the plaza. (P .
1300.0.9)FISCAL IMP
ACT: None. A check for $100 has been posted as a bond.ACTION: Approved.
2.25
Request Council waive the No Parking Anytime restrictions on the south side of Struck Avenue adjacent
to Orangeland RV Park located at 1600 W. Struck Avenue for a 24 hour period on
June 30, 1997. (S4000.S.3.1.1)FISCAL IMPACT:
Funding for this type of work is provided in the Department's normal operating
budget Account No. 100-5032-42700 Contractual Services.
Discussion: Cindy Wimbish, 1600 W. Stuck Avenue, Orange, invited Council to
Orangeland R.V Park's 25th Anniversary celebration on June 30th from 2-5 p.
m.ACTION:
Approved.PAGE
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
2.26 URGENT ITEM
The Director of Public Works reported Council had previously approved a Transportation
Permit for removal of demolition material for the WalMart project at the Mall of Orange,
with a condition limiting the operation to the use of five trucks. After citations were
written, it was discovered that the contractor was utilizing fifteen trucks in the process.
As a result, it has been requested that the permit be amended to expand the number of
trucks to be used in the operation for the removal of demolition debris and the import of
fill material. The trucks can only enter and exit the site via Tustin Street. Citations were
issued by the Police Department for trucks that did not have permits, were not in
compliance with the permit, and for trucks that were exiting on to Heim Avenue and
Canal Street.
Mayor Coontz commented that conditional use permits are needed for grinding on-
site and the Planning Commission will be looking at that issue
soon.MOTION - Slater
SECOND - Spurgeon AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
there is a need for immediate action and the need to discuss the item arose after the
posting of the agenda.Carole Walters,
534 N. Shaffer, Orange, asked ifmore trucks are being added; if the residents in
the area were notified, indicating that the residents should be notified ofthis request.Request
for
an Addendum to Transportation Permit No. 10078, concerning the Wal-Mart project
under construction at The Mall of Orange to increase the number of trucks from 5 to
15.MOTION -
Murphy SECOND - Spurgeon
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon, Alvarez Moved for a continuance
to the July 8th meeting.PAGE 9
CITY COUNCIL MINUTES June 24, 1997
2. CONSENT CALENDAR (Continued)
MOTION - Spurgeon SECOND -
Mayor Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Item Nos. 2.
3, 2.19, and 2.23 were removed and heard separately. Councilman Murphy abstained from voting
on Item Nos. 2.19 and 2.20. Mayor pro tem Slater abstained on Item No. 2.
14. Item No. 2.26 was added as an Urgent Item.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS -
None 5. REPORTS FROM BOARDS, COMMITTEES,
AND COMMISSIONS - None 6. ADMINISTRATIVE REPORTS 6.1 Status
report from the
Director of Public Works on traffic conditions on Shaffer Street between Taft Ave. and Meats
Ave. (S4000.S.3)The Director of Public Workspresented
a brief overview of the traffic conditions since Council's last discussion five months ago. The
traffic volumes are about the same, approximately 1800 to 2000 vehicles per day, with about
lOOO vehicles in the morning period. It is staffs opinion that these are not excessive volumes for
this roadway and it is recommended that no further action be taken. Speed, accident rates, and traffic
volumes will continue to be monitored. A proposed Neighborhood Traffic Management Program will come
before Council the first meeting in September for review and approval. Enterprise
Rental Cars could be asked to cooperate by using Orange-Olive Road and Meats, rather
than Shaffer, when moving cars from their lot on Tustin Street.Bill Feliciano, 2009 N.
Shaffer
Street, commented that changing the traffic pattern on Meats on to Orange-Olive Road did
not increase or decrease the number of vehicles on Shaffer; indicated that 2000 vehicles per
day is a lot of traffic; Shaffer is being used as a cut-off route for Cambridge and Orange-
Olive Road; expressed appreciation to the Police Department for their efforts; and
requested Council consider doing something residents have suggested in the past to resolve the
dangerous situation.Carmen Saldana,
1903 N. Shaffer, commented that she does not feel that there is a major problem on
Shaffer Street.PAGE 10
CITY COUNCIL MINUTES June 24, 1997
6. ADMINISTRATIVE REPORTS (Continued)
MOTION - Murphy SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
the report with the comments noted.6.2 Appeal
by Mr. Joseph Gabrill of the City Traffic Commission's recommendation to install parking restrictions
adjacent to the driveway that services the apartments at 271/283 S. Oak St.
It was noted
the appellant was not present.MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez Moved to continue to July 8th
meeting.6.3 Request Council a) designate
the Orange Housing Development Corporation OHDC) as a Community Housing Development
Organization (CHDO); b) approve in concept a loan of federal HOME
funding to the CHDOIOHDC in an amount not to exceed 124,200 for the acquisition and
rehabilitation of a triplex in the City; and c) authorize staff to negotiate the terms of
the loan and draft a HOME Assistance Agreement between the City and OHDC. (C2500.G.
1)FISCAL IMPACT: HOME funding is available
for this purpose in the 317 (HOME Program)Fund. Authorization to appropriate the funding
will be requested at the time the HOME Assistance Agreement is presented for consideration.
The Director of Economic Development explained
the rules and regulations associated with the use of HOME funds which the
City receives from the Department of Housing and Urban Development (HUD) each year. The Orange
Housing Development Corporation meets the formula that HUD sets out for
a Community Housing Development Organization (CHDO),which is to make the organization
accountable to low income community groups. The funds can also be used for neighborhood beautification.
There is not a specific address in mind for the triplex, however, the area behind Highland
is being looked at for acquisition and rehabilitation of a triplex, in order to expand
the work that the City has started so successfully.MOTION - Mayor Coontz SECOND - Murphy AYES -
Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez PAGE
11
CITY COUNCIL MINUTES June 24, 1997
6. ADMINISTRATIVE REPORTS (Continued)
Moved to a) designate the Orange Housing Development Corporation (OHDC) as a Community
Housing Development Organization (CHDO); b) approve in concept a loan of federal HOME
funding to the CHDO/OHDC in an amount not to exceed $124,200 for the acquisition and
rehabilitation of a triplex in the City; and c) authorize staff to negotiate the terms of the loan and
draft a HOME Assistance Agreement between the City and OHDC.
6.4 Treasurer's Report for the period ending May 31, 1997. (C2500.F)
The Finance Director reported the Cash and Invested Balance was $116 million, which was $1.2
million less than the prior month, due to May being a three payroll month. The investment
activity was minimal; money was withdrawn and deposited into LAIF, which had a balance of
12.3 million. The Portfolio Yield to Maturity was 5.54%. Market values decreased slightly to
99.35% of book. The Weighted-Average Maturity was 1.23
years.Mayor Coontz requested that Council review the text for the advertisement of the
Investment Advisory Committee, prior to it being sent to the newspaper for
publication.MOTION - Slater
SECOND - Spurgeon AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to
receive and file.7. REPORTS
FROM CITY MANAGER 7.1
Update on new contract discussions with Business Records Corporation and a proposed two
month extension of the City's current contract with BRC (continued from June 10,
1997). (A2100.0 AGR-0978.B.10)FISCAL
IMP ACT: Funds in the amount of $71 ,264.42per month are budgeted in FY 1997/98 Account
No. 780-1601-426700-0000 (Other Professional and
Consulting Services).NOTE: Councilman Murphy abstained from voting due to a potential conflict
with his employment and excused himself from
the dais.The Assistant to the City Manager reported the existing contract needs to be extended
as more time is needed to define the
performance measures.MOTION -
Spurgeon SECOND - Alvarez
AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
Murphy Moved to
approve the two month extension.PAGE 12
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
7.2 Update on the Orange Disposal Service/Orange Resource Recovery Systems.
A2100.0 AGR-
2188)The City Manager updated the Council and the public on the City's actions relating to
the Orange Resource Recovery Systems (ORRS) investigation. The investigation is ongoing and
the City will have no comments on the investigation until after it is completed. As of last
week,personnel who formerly dealt with ODS and ORRS have been rotated to other assignments
that do not bring them into direct contact with ODS and ORRS. It was noted that this is not
a negative or punitive action against these employees, but a management tool that allows them
to have a different set of eyes and ears to address the day-to-day contract issues
during this period.It will be recommended that the City bring in a qualified independent
consulting firm with expertise in the areas of trash, landfill, and recycling operations to reevaluate the
City's entire trash and disposal operations. Additionally, a recommendation will be made that
the City move forward in the area of expanded internal auditing as it applies to other
City funds, internal operations, and selected contracts and their operations. It was noted that
trash service continues to be provided in an efficient manner, and that both ORRS and ODS have
been
cooperative to date.Mayor pro tem Slater commented for the record: "I feel that in support of what
the Manager just said, we need to do everything we can to support the criminal
investigation without interfering with it in any way. But there is a criminal side to this and there is also a civil side,
and we've been walking on eggshells with this criminal investigation. But I feel that we're
delinquent if we don't look at this from a civil perspective, at least, at this time. 1 have some
questions that I would like to have answered. I brought this up the last time, but the first one is, I
want to be assured by staff that we have full control over all our accounts that this company
has in their name which are City funds. Secondly, what is happening to the money that is
coming in now,and who is collecting it, on
the day-to-day operations?"The City Manager indicated at this time the City does
have control over the accounts.Approximately two weeks ago, the Finance Director and the
Mayor became signatories on the gate fee accounts. If any other monies/accounts come to the City's
attention, the City would try to take custody and/or protect that money and report
back to Council. Residential customer monies are forwarded to the City through the utility bill. The money that
needs to go to the payment of the Materials Recovery Facility (MRF) loan is wire
transferred to Wells Fargo Bank,which holds the loan for the recycling facility. The gate fees are
set by contractual amount and are paid to
ODS on a monthly basis.The Finance Director clarified that money is transferred into the Wells
Fargo Bank account on a monthly basis and approximately $80,000 is taken to pay for the
debt service. The City collects only for the residential portion of the collection efforts, which
is approximately 43% ofthe total operation. The company bills and collects for the commercial portion
ofthe operation, i.e. drop-off bins. The City does not handle all the funds here. Any of the
sales of
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
dump, or the buy-back, would be handled at ORRS. The contract that the City has with
ORRS does not provide for the City to intercede in any of those financial
transactions.The City Attorney commented the Hambarian's were more than willing to have co-
signatures on that account and, as far as he knows, that is the only account he would classify as
City funds.Mayor pro tem Slater: "I understand about the gate fee account, but day-
to-day operations, the officer's salaries, profits. Has anything changed in that area or is there
anything that can
change at this point?"The City Manager explained the City is asking and working with the company
and staff to make sure the City has full compliance with the existing contract. Those messages
are being carried to the company
through the City Attorney.Mayor pro tem Slater: "In the process of all of this coming forward,
has there been any discussion of setting up escrow accounts in case there are deficiencies that
are found down the road, by any chance. Basically, I just want to be sure that, after all the dust
has settled and the time does come to collect any potential losses, that the money
is, in fact, there."The City Attorney indicated there have been some discussions, but
no
agreements have been reached.Mayor pro tem Slater: "Just to proceed a little bit further, I want to look
at the contracts also from a City perspective, and, City Attorney, I know that there
is probably some more investigation that you will want to do on this, but, at this point here today and
now, are there any places that you have definitely seen that these contracts have been breached?
There is an issue that I have, at least, that seems quite obvious, but I'm not sure I have the
whole story on that.Even in the information that we gave to the consultant that we're
considering hiring, we are saying that only about 14% of the garbage is being diverted at this point. And
I know that, I believe, the contract says it should be 25%. Is that something that is a
breach of the contract?"The City Attorney responded there will be a number of issues with respect
to the contracts that will be addressed. A lot of the things that the City would anticipate ORRS
or ODS to do temporarily, at least, would be to rectify those breaches, which they are willing
to do at this point. State law mandates that 25% of the waste stream be diverted
from landfills. The contract speaks of25% diversion through the materials recovery facility. To the
extent that they meet that 25% diversion through the materials recovery facility determines
how the
recycling revenues are shared.Mayor pro tem Slater: "So, what you are telling me right now is that you
cannot cite any specific examples of where this contract has been breached
from a
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
The City Attorney replied that the recycling aspect is one ofthe areas that would be looked at,
whether or not the current diversion meets the contractual requirements. A lot of issues are
potential issues that need to be discussed with ORRS and ODS. A list of contract issues that
need to be discussed will be provided next week.
Mayor pro tem Slater: "At that time, can you also tell us what is the path, if we do find that the
contract has obviously been breached at this point? What is the path we would take to continue
on?"
The City Attorney explained the process that would be involved if the City believes there is a
breach of the contract, indicating Council would make the fmal determination of whether or not
the contract has been materially breached.
Mayor Coontz reported a chronology of documentation is being gathered to address the above
issues and will be available for the public.
Councilman Murphy suggested the City Attorney conduct interviews for legal assistance in terms
of contractual law as it pertains to waste hauling and recycling type situations. The importance
of time was stressed and suggested this process be done in a parallel mode with the management
audit.
The City Manager indicated as the chronology is being put together those items that are public
documents will be released, and the City Attorney has the key to release that information, the
chronology and any other correspondence will be reviewed by the Police Department and the
District Attorney for their acknowledgment and concurrence in order that the criminal side of the
investigation is not compromised.
Councilman Alvarez presented the following questions, concerns and comments:
1. It had been reported in the papers that a gap of 20 months or so in terms of who participated
in 1995 with Steve Nakada in terms of "the red flags." Are we getting an answer as to what
happened during that time period?
2. Is the fraud audit complete at this time and are you satisfied with the scope in which Arthur
Anderson conducted the fraud audit?
3. It has been reported that the notice which Steve Nakada had reportedly given to the City, do
those, in fact, exist?
4. In terms ofthe internal audit that is being conducted of the City internal controls, has the
scope of the whole investigation included the construction period of the recycling center and
its operation?
5. Are you satisfied with having the two people at ORRS or ODS? My concern is protecting
the public's welfare and interest and that the City may be leaving itself open to where assets
could be removed by normal employees coming in and off the property.
PAGE 15
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
6. When the Police Department went in to seize records, were all the records available to the
agencies that are conducting this investigation? Are they satisfied with that?
The City Attorney reiterated that Council will be provided a chronology ofthe events which
occurred so they have an understanding of the communications that were going back and forth.
In reference to the notice Steve Nakada reportedly gave to the City, it was indicated a lot of the
documents have become part of the criminal investigation, and that he preferred a comment not
be made.
The City Manager noted that public documents will be released and the City Attorney has the
key to release that information. It will respectfully be requested that the Police Department and
the District Attorney review the chronology and any other correspondence the City has for their
acknowledgment and concurrence, so that the City does not compromise the criminal side of the
investigation. The scope of work outlined for Arthur Andersen was to review the work of the
other auditors and to render an opinion on the extent of that work. A report has been provided.
Through the Police Department's investigation, subsequent investigations, and evaluations by the
City's contractor, there may be additional things and items of operations and/or from the
financial side, that the City wishes to examine further. The City will reserve the ability to do that
with other audits. If the construction period of the recycling center and its operation is not part
of the criminal investigation, it will be part of the City's overall investigation. The assets of the
company is the responsibility of the company. It was indicated that he is satisfied with the scope
of work and the attention the Public Works Department has put on this area in the past and what
the current employees are doing. ODS and ORRS are cooperating, on a daily basis, to provide
any and all the information that is needed. The Police Department is at the moment satisfied
with the cooperation they are gaining through their criminal investigation.
Nick Lall, 6231 Mabury Avenue, Orange, asked who is paying for the city staff to monitor the
ORRS/ODS operation; if additional staff is needed as a result of the alleged criminal and civil
actions and are they paid for with taxpayer's money; commented on the importance ofthe
control of the accounts; asked if ODS potentially misused an account that was City money;
indicated he hopes the City looks at rescinding the contract and goes out to bid for trash and
recycling services; and asked who notified the City staff?
The City Manager responded the Public Works staff are paid out ofthe sanitation fund. The City
Attorney indicated that because most of Mr. Lall's questions relate to the criminal investigation,
he could only respond to his question regarding who is paying for staffing and the monitoring of
the ODS and ORRS operations. Historically, staff has been there and the staffing is just different
at this time.
Carole Walters, 534 N. Shaffer, Orange, asked why the City Council did not go out for bid and
expressed support of an oversight committee.
PAGE 16
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
MOTION - Murphy SECOND -
Coontz AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file the oral report.7.3 Report
on the formation of a formal Audit Committee and recommendation as to its member, composition and
its function, including a request regarding direction on the creation of an
independent internal audit function. (C2500.E)The City Manager
reported the proposed Audit Committee would assist the City Council and the staff in safeguarding
City assets by reviewing financial information, the adequacy of accounting and internal control
systems, and related safeguards in overseeing the audit function. It is proposed that the
Committee be formed with five voting members consisting of two members of the City Council,
the City Manager, the proposed internal audit manager (forthcoming in Item 7.4), and
acitizen representative who is a CPA residing in the City. It is proposed that the members would serve
without compensation; the City Council and the City representatives would serve two
year terms; and the Committee would meet on an as-needed basis, but in any event, no
less than twice annually reporting to the full City Council at least annually. The Committee would
be required to hold public meetings in accordance with the Brown Act and the City Conflict
of Interest Code and the State Conflict of Interest laws. If approved by the City Council, staff
would be ready to assist the Council in establishing the Committee and getting the Committee to
work in short order.The establishment
of an independent internal audit function is proposed whereby a new position or positions
would perform independent audits and report directly to the City Manager. If the concept of
an internal audit function is approved by the City Council, a report will be brought back to
the City Council no later than July 22, 1997, with proposed internal audit function duties,responsibilities, and
the related costs.The Audit
Committee is a recognized body by the American Institute of Certified Public Accountants (AICP
A) and recognized by the private as well as the governmental sector. The audit will
address the transient occupancy tax, redevelopment contracts, and other performance and compliance
based contracts. The adequacy of the internal control structure of the City would be monitored
in regards to cash disbursements, cash receipts, and treasury transactions. The Committee would
be looking for control weaknesses and legal compliance violations identified by the
course of any financial statements that are audited. Monies will be requested for contracting out
for auditing services with another agency or for auditing service with another agency with
expertise.Councilman Alvarez
expressed concern regarding the taking of minutes during Executive Sessions. The
Council was not allowed to keep their notes regarding the recent Executive Session concerning
Orange Disposal Service. It was suggested that in Executive Sessions,Councilmembers be
able to keep their notes.PAGE 17
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
The City Attorney stated that there is no legal requirement to keep minutes of Executive
Sessions, and he knows of very few cities that do.
Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, supported the separate auditing
function and the auditor reporting only to the City Manager, who in turn reports to the City
Council; and urged the Council not to take written minutes of Closed Session meetings.
Z. Harry Astor, 333 City Parkway W., Orange, Attorney representing ODS and ORRS, expressed
support of the City's administration and the hiring ofa consultant in connection with the audit
function. The existing contract requires an auditor who is a CPA to review the financial
documents and present them to the City; the existing system produced the identification of the
problems that have been addressed. Mr. Steve Nakada, auditor for ODS and ORRS, advised
management 1 Y2 years ago that there were problems, i.e. inadequate records, possible shortages,
etc. At the very moment management of both corporations became aware that there was a
problem, management gave authority to Mr. Nakada to conduct a full-scale investigation.
The contractors started the investigation, not the City of
Orange.For 42 years the Hambarian's have stood behind their contract with the City. When
the information was developed by the auditor, the Hambarian's first priority was to be sure that
the City of Orange, or its citizens, would not loose any monies by reason of this operation. The
first order of business was to replenish when management found out that there were funds that
should come into the corporations and did not. The funds were replenished as the information
became available, which was done periodically over three different fiscal year periods. To the
best knowledge of the Hambarian family, excluding the individuals whose name is in the press
as being a problem, the other members have continued to acted responsibly. The Hambarians
are honorable people who are meeting the terms of both contracts to the best oftheir ability, and
they run a good operation at the lowest rates in the City of
Orange.The Hambarian family never had any information concerning Jeff Hambarian or the
conversion of funds as the press has reported. The information was seen in the press for the first time.
The proper place for the ORRS and ODS corporations to address these problems has been,
and continues to be, through staff. It is the policy ofthe Hambarian family, and Mr. Astor'
s understanding, that the City will be reimbursed fully for any losses. A particular amount has
not been identified. There are no funds missing from the gate fee account or an account that some
of those funds were transferred into at Wells Fargo Bank. It is believed that whoever looked at
the financial statements misunderstood and misinterpreted something which led to the
allegations that there may have been some misappropriation. To the best knowledge of ODS and ORRS,
the City has not lost one
cent.PAGE
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
THE FOLLOWING RESPONSES WERE PROVIDED BY MR. ASTOR TO QUESTIONS RAISED BY
COUNCILMEMBERS:
It was indicated, to the best of his recollection, in representing people in the waste
management industry since 1949, and in dealing with different cities and contracts, he could
not recall a contract that he is familiar with, that has the specifics of the contracts that ORRS
and ODS has with the City of Orange, i.e. cost plus provisions, separate gate fee account.
JeffHambarian is no longer on the Board of Director's for ORRS or ODS.
It is his understanding that whatever funds the corporation is due from salvaged sales, so
forth, that not only belong to the corporation, but has to be taken into consideration in
defining the City's cost plus contract, and the split of proceeds from recycling revenues and
how those are applied. While the contract does not say that any funds missing would be
replenished, the spirit of the contract is very clear. If Orange Disposal finds out that there
were checks cashed made out to ORRS or Recycle Orange, and those funds did not reach the
contractor, and the contractor submitted financial statements, it is felt the contractor should
replenish those funds and then investigate to see who and when and why.
Nick Lall, 6231 Mabury Avenue, Orange, expressed dissatisfaction with being held strictly to the
three minutes time limit under Item No. 7.2; expressed support ofa seven member Audit
Committee; recommended the Councilmembers serving on the Committee be non-
voting members, and that the Audit Committee report directly to the Council at least once a
year.MOTION - Mayor Coontz
SECOND - Spurgeon AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to:
Approve the
formation of an Audit Committee as outlined in the City Manager's Report.Duties of
the committee include: 1) Selecting the independent financial auditor for the City's
financial statement audit; 2) Monitoring the progress of the financial statement audit; 3)
Evaluating the results of the financial statement audit; 4) Ensuring that control weaknesses and
legal compliance violations identified in the course of the financial statement audit
are promptly and effectively remedied; 5) Serving as a direct communications link
between the Council and the independent auditor; 6) Monitoring the adequacy
of the government's internal control structure on an ongoing basis, such as cash disbursements,
cash receipting, treasury transactions, etc., as examined by the internal audit
function and the independent financial auditor; 7) Maintaining minutes of committee proceedings
and reporting to the council at least annually; and 8) Review results of
contract compliance audits and financial statement reviews conducted by the City's
internal audit function, such as trash contracts, redevelopment agreements and revenue audits.
PAGE 19
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
Direct the City Manager to prepare a report and recommendation for the creation of an
internal audit function and position(s) (Internal Auditor(s) that will be independent of all
departments and report directly to the City Manager.
The Audit Committee will report directly to the City Council and the internal auditors will
report to the City Manager.
The Audit Committee will create a report to identify the source, use and policies of the
reserve funds as they relate to the budget.
The professional CP As on the Audit committee are to have no professional connection with
any member of the Council, the Finance Director, the Internal Audit Manager or any other
staff member.
Orange residents who are CP As will be given preference, qualifications being equal.
The goal shall be up to three CP As on the Committee.
Council to review the text for the advertisement, as required under the Maddy Act, for CPA's
to serve on the Audit Committee, before it is sent to the newspaper.
MOTION - Mayor Coontz SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to appoint
Mayor pro tem Slater and Councilman Mark Murphy to the Audit Committee as ex-officio (
non-voting) members.7.
4Report on the selection of an independent consultant to conduct a comprehensive solid
waste and recycling analysis and provide recommendations for changes in the delivery
of these services. (A2100.0 AGR-2852)
FISCAL IMP ACT: Funds estimated at $100,000 for this analysis are budgeted in Sanitation
Account 220-
5022-426700.Mayor pro tem Slater asked how much the cost will be for evaluating the
proposed expansion plans for the (Materials Recovery Facility (MRF) and whether it should be looked at
this point,considering the companies are only processing about 113rd of capacity from the City
of Orange,and commented that it doesn't seem proper at this point to consider a study of or
the expansion of the
MRF facility.The City Manager responded the City has concerns regarding the diversion rate
that the contractor has been able to achieve to this point. Part of the evaluation will be to see
whether the lack of diversion meeting the benchmark is due to an operational issue or the design
of the current recycling facility. The City will closely monitor whether or not the MRF
should be expanded. Staff began addressing the issues of bringing a consultant on board last year as
a part of meeting the Capital Improvement Program budget for future years and to determine
what the City needs to achieve the best possible diversion ofrecyclables at the
lowest expense.
CITY COUNCIL MINUTES June 24, 1997
7. REPORTS FROM CITY MANAGER (Continued)
In response to Councilman Alvarez, the City Attorney stated that he does not think this report has
anything to do with the investigation as it is more of an operational look at the facilities. The
issue is to look at why diversion is not being met, and if it is not being met, how to correct it.
Councilman Spurgeon commented that when the facility was initially approved, he had requested
that the City go out to other cities without recycling facilities to seek their business in helping to
make the facility more profitable, indicating that this should be looked at as the City moves
forward.
Marilyn Silverstein, property owner of 243-265 Olive Street, Orange, addressed waste
collection complaints and indicated that letters were sent to Councilmembers requesting that an
Apartment Association representative and other concerned citizens have input on waste collection
issues when a waste committee is
formed.Mayor Coontz replied that Ms. Silverstein's letter was forwarded to the Public
Works Department for a response. Ms. Silverstein was asked to leave her name, address and
phone number, and meet with the Director of Public Works and/or his staff regarding her
complaints
immediately.Carole Walters, 534 N. Shaffer, asked why the City didn't go out for
bid?The City Attorney responded the report that will be provided to Council will provide
that
information.MOTION - Slater
SECOND - Murphy AYES -
Murphy, Slater, Coontz, Spurgeon, Alvarez Moved to:
Approve the
selection of Hilton, Farnkopf & Hobson, LLC as primary, and Brown, Vence &Associates, Inc.
as alternate, to conduct a comprehensive organizational, engineering, and financial analysis
of solid waste and recycling operations.Direct the
City Manager to negotiate a contract returning to Council with a recommended contract as
soon as possible.Interviews be
conducted for legal assistance in terms of contractual law as it pertains to waste hauling and
recycling type situations.PAGE 21
CITY COUNCIL MINUTES June 24, 1997
8. LEGAL AFFAIRS
8.1 ORDINANCE NO. 3-97 (SECOND
READING)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)Carole Walters, 534 N. Shaffer, asked why City residents only have ten days to correct
a nuisance while others seem to have more than ten days; cited an incident with
Chapman University which occurred in 1989; and requested the City address the issue of damage
caused by tree
roots.The Director of Public Works responded as problems arise, if there is no other way to deal
with them, the tree is removed. The existing ordinance places a lot ofthe burden for the cost of
repair directly on the property owner; the new ordinance removes that burden. A Street Tree
Master Plan is proposed to be developed which would identify the species which are most suitable
for use as parkway trees, provisions for selection of species on given streets, and trees that
are considered undesirable. It is not proposed that a mass removal be done of undesirable trees.
An audit identifying street trees in the City is available through the City's tree
maintenance contractor. There are approximately 21,000 street trees and about 8,000 locations where trees
are
mlssmg.MOTION - Slater
SECOND - Murphy AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Ordinance No. 3-97 be adopted and same was passed and adopted by the preceding vote.
8.
2 ORDINANCE NO. 15-97 (FIRST READING)
An Ordinance of the City Council of the City of Orange relating to non-point source
storm water discharges. (A2500.0
Water)MOTION - Spurgeon
SECOND - Murphy AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Ordinance No. 15-97 be set for second reading by the preceding vote.9.
RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10.
ORAL PRESENTATIONS - None PAGE 22
CITY COUNCIL MINUTES June 24, 1997
11. RECESS
The City Council recessed at 7:30 p.m. and reconvened at 7:40 p.m. Note: The Council met in
Closed Session after the 7:00 p.m. Session.
7:00 P.M. SESSION
12.1 INVOCATION
Assistant Pastor Josh Dulaney, Calvary Chapel East Hills
12.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilman Alvarez
12.3 ANNOUNCEMENTS - None 12.
4 INTRODUCTIONS - None 12.5
PROCLAMATIONS - None 12.6 PRESENTATIONS -
None 13. PUBLIC HEARINGS 13.
1 NATURAL COMMUNITY
CONSERVATION PROGRAM - CITY OF ORANGE:Time set for a public
hearing on the Natural Community Conservation Program. The Natural Community Conservation Plan (NCCP) is
an outgrowth of the Endangered Species Act and the result of collaborative efforts by
the U.S. Fish & Wildlife Service (USFWS), California Department of Fish & Game (CDFG),
County of Orange and a number of property owners and cities in the County, who
have land containing Coastal Sage Scrub (CSS). The City of Orange is eligible to participate in the
NCCP plan which creates a 37,000 acre "non-developable" Reserve in the County's
central and coastal areas, some of which are located in Orange. If the City decides to become a
participant, properties outside of the Reserve's boundaries would be granted assurances that they could
be developed by utilizing the criteria established in the NCCP. The landowners will be required
to meet all normal city development standards. EIR/EIS 553 has been certified by the
Orange County Board of Supervisors for this project. (A2100.0 AGR-2853)The Planning Manager
presented a brief overview of the Natural Community Conservation Plan NCCP) for the
City of Orange, referring to a map which depicted the Reserve areas and where various habitats exist.
The Irvine Company has signed on and negotiated, as part of the process,to protect the
development areas within the East Orange General Plan. A large area of the East Orange General Plan,
which the Irvine Company refers to as "North Ranch", has been placed in a special study area,
which will be evaluated at some future time for its potential to be included in the Reserve, or
a portion ofthe Reserve. The area is at a higher altitude and the quality of coastal sage scrub is
not the same.PAGE 23
CITY COUNCIL MINUTES June 24, 1997
13. PUBLIC HEARINGS (Continued)
The rural and the State residential categories and a couple of very environmentally sensitive
areas were impacted, affecting less than 250 of the 12,350 residential units. No commercial or
employment areas are impacted by the Plan. The Plan protects the Eastern Transportation
Corridor. The last large remaining property to be developed that has coastal sage scrub is the
Serrano Heights project.
With the adoption of the Plan, the City's responsibility would be: 1) the record keeping
responsibilities of monitoring the loss of coastal sage scrub; 2) insuring that the non-
participating land owners provide evidence of mitigation and/or payment of the mitigation fee; and
3)reviewing project proposals to insure consistency with the NCCP. Benefits of the Plan would
be:1 )the City would be covered if any of the other 39 species of animal or birds that live within
the same habitat should be listed; 2) owners of property not in the Reserve with coastal sage
scrub who want to develop would be able to take advantage of potentially using a mitigation fee;
and 3) the road improvement projects that would remove coastal sage scrub that are in the
Master Plan of Arterial Highways would also be
covered.Tim Nealy, Administrator of Planning and Zoning for the County of Orange, explained that
a mitigation fee has not been established. Currently, the range of fee estimates by the
consultant are from about $47,000 to $53,000, which takes into consideration the cost of raw land
that might be incorporated into the Reserve, along with the cost of restoration of the disturbed land
to get it to have suitable habitat value. It is important to keep the fee as low as possible to
encourage people to use this alternative. However, the fee has to be representative of some of the costs
that have already gone into the development of the Plan and some of the costs of the relative land
that is already in the Reserve, so that it is being established on a proportionate and equitable
basis.The fee is not finalized and will come back before the Board of Directors of the
non-profit corporation at the next quarterly meeting in September. The consultant report will
be circulated in the next two or three weeks for the City
to review.The Plan provides an opportunity for the City to avail itself of some funding, down the
line, if the City becomes owner of some public lands. A provision of the
Implementation Agreement gives "habitat level coverage" which says that certain types of habitat, i.e. coastal
sage scrub,chaparral, and some of the other habitat areas, that if species that are depending
upon those habitats are listed, and they require mitigation above and beyond what is already being
offered by this Plan, the State and Federal governments will pick up the costs of the extra mitigation
at no cost to any of the local participants. The 39 species are automatically covered by
the agreement.MAYOR COONTZ OPENED THE
PUBLIC HEARING.Frank Elfend, lOlO Newport Center Drive, Newport Beach, on behalf of
California Quartet,owner/developers of the Serrano Heights Project, requested confirmation that all the
terms and conditions that are provided for within their Development Agreement and the
fuel modification issue, which was previously negotiated with the City, will not be affected in any way
by the adoption of the Plan. With the City's confirmation, support was expressed for the
City'sdadoption ofthe Plan. It was indicated that during the prior submittal and approval
ofthe PAGE
CITY COUNCIL MINUTES June 24, 1997
13. PUBLIC HEARINGS (Continued)
Tentative Map, there was an agreement that was negotiated with the staff, and reviewed by the
City Council, regarding fuel modification.
The Planning Manager responded that staff does not believe that the adoption ofthe Plan will
impact the Agreements that the City has with Serrano Heights or California Quartet on the
development ofthe project. The fuel modification issue is an unrelated issue that the Fire
Department and the property owners still need to resolve as the project moves forward with
implementation. The adoption of this Plan does not help or hurt that process.
Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, expressed support of the City
accepting the Plan.
THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC
HEARING.
MOTION - Mayor Coontz SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved that EIR/
EIS 553 has been certified by the Orange County Board of Supervisors.MOTION - Mayor Coontz
SECOND - Spurgeon AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez Moved that the City become a
participant in the Orange County Central and Coastal Subregion Natural Community Conservation Plan!Habitat Conservation
Plan Program by authorizing the Mayor to sign the NCCP/HCP
Implementation Agreement.14. PLANNING AND ENVIRONMENT - None 15.
ORAL PRESENTATIONS David A. Lawrence, 507
S. Wrightwood Street,
Orange, made the following complaints about his next door neighbors: 1) lewd conduct, unlawful
drinking in front of his neighbors property,verbal abuse, verbal threats to make him
move, loud parties; 2) constant dog barking nuisance and dog running freely in the front
street, and 3) the parking of six to seven cars and two motorcycles deliberately placed in front of his
residence. His purpose at the meeting was to inform the Council of the wrongs, show
the Council there is an actual person being hurt, and let the Council know, in person, that he
has tried everything short of civil legal action to abate the problems. A written statement will be prepared
this week to request that the curbs in front of his home be painted red as a "no
parking" zone. It was requested that the City Council have the City Engineer come out and look at the
situation and the pictures when they are developed, and place a temporary no parking zone until it
can be abated in August.PAGE 25
CITY COUNCIL MINUTES June 24, 1997
15. ORAL PRESENTATIONS (Continued)
Mayor Coontz requested that Mr. Lawrence provide his written statement to the City Manager
and that the City Manager could take whatever action(s) that he thinks would be helpful.
URGENT ITEM
The City Attorney recommended the City Council meet in Closed Session as a result of several
newspaper reports concerning Orange Resource Recovery Systems (ORRS), indicating the
reports and comments made in the report create potential litigation issues for the City.
MOTION - Mayor Coontz SECOND -
Murphy AYES - Murphy,
Slater, Coontz, Spurgeon, Alvarez Moved that the
need for a Closed Session arose after the posting of the agenda and that there is a need for immediate
action.THE CITY COUNCIL
RECESSED AT 8:25 P.M. TO A CLOSED SESSION AND RECONVENED FROM CLOSED
SESSION AT 9:00 P.M. NO ANNOUNCEMENTS WERE MADE.16. ADJOURNMENT
MOTION -
Mayor Coontz
SECOND - Murphy AYES - Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez The City Council adjourned at 9:
00 p.m.U-CASSANDRAJ CITY CLERK PAGE 26