07-08-1997 Council MinutesApPROVED BY THE CITY COUNCIL ON JULY 22, 1997
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
July 8, 1997
The City Council of the City of Orange, California convened on July 8, 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 Mayor Coontz
1.2 ROLL CALL
PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
None 1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz
introduced Mayor Vladimir Chernov and his wife, Lillian, visiting from Novo Kosino,
Moscow, Russia. Mayor-to-Mayor gifts were exchanged as a reminder of
their lasting friendship and continuing Sister City relationship.
Maryanne Gillespie, representing Child Abuse Services Team (CAST) explained the
purpose ofthe program is to ease the trauma for sexually abused children in Orange
County, and the Orange Police Department's interaction with CAST.
Mayor Coontz announced the tremendous success ofthe Second Annual Fourth of July
celebration, held on July 3rd at Kelly Stadium, which had an attendance of over 7,000.
The goal was to give the non-profit organizations in town an opportunity to use the
event as a fund raiser and provide a quality event for the residents of Orange. Steve Ambriz,
an employee of the Community Services Department, was recognized by Council for
his outstanding efforts in coordinating the event and wished success with his new job
at Children's Hospital of Orange
County.Mayor Coontz announced that the City provides a brochure on the Concerts in the
Park series which begins on July 9th and will be held on July 16th, 23rd, and 30th, August
6th and 14th. The Community Services Department sponsors the event and can be
contacted for more
information.1.4
PROCLAMATIONS A proclamation was presented to Ashley Marie Gannon, Miss Southern
California American Pre-
Teen 1997.
CITY COUNCIL MINUTES July 8, 1997
2. CONSENT CALENDAR
2.1 Declaration of City Clerk, Cassandra 1. Cathcart, declaring posting of City Council
agenda of a regular meeting of July 8, 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 ofthe public at least 72 hours before commencement of said
regular meeting.
ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a
public record in the Office of the City Clerk.
2.2 Request Council confirmation of warrant registers dated June 24 and 27, 1997.
ACTION: Approved.
2.3 Request approval of City Council Minutes, Regular Meeting, June lO, 1997 (continued
from June 24, 1997) and June 24, 1997.
ACTION: Approved.
2.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
BIDS
2.5 Request Council award Bid No. 967-39 to Tri-Pacific Maintenance Services, Inc.
for City custodial services in the amount of $226,990, and reject all other bids. (A2100.
0
AGR-2856)FISCAL IMPACT: Funds are budgeted in Account No.
100-7028-424202 (Janitorial Services) in the 1997/98 Budget of each
department receiving these services.ACTION: Authorized Mayor and City Clerk to execute
on
behalf ofthe City.CLAIMS 2.6
CLAIMS FOR DAMAGES FROM:a. Vista Royale
Homeowners Association (C3200.
0)FISCAL IMPACT: None.ACTION: Denied claim for damages and referred to
City Attorney
CITY COUNCIL MINUTES July 8, 1997
2. CONSENT CALENDAR (Continued)
CONTRACTS
2.7 Request Council award a contract in the amount of $88,894.17 to R. J. Noble Company
for street reconstruction on Cherry Drive from Main Street to 661.5 ft. east, and Lime
Street from Palm to Sycamore Avenue; and appropriate $18,000 from the Unallocated
Reserve CDBG Contingency Account No. 310-6059-491300-lO70. (
A2lO0.
0 AGR-2857)FISCAL IMP ACT: Funds are budgeted in
the following accounts:42,433.00
Account No. 3lO-6059-483300-1814-
16114 CDBG Street Reconstruction - Cherry Dr.)
35,166.00 Account No. 3lO-
6059-483300-1814-16115 CDBG Street Reconstruction - Lime St.)Appropriate $18,000.
00 from the Unallocated Reserve
CDBG Contingency Account No.310-
6059-491300-1070 into the following
accounts:9,900.00 to
3lO-6059-483300-1814-16114 CDBG
Street Reconstruction - Cherry Dr.)8,lOO.00 to 3lO-6059-483300-1814-16115
CDBG Street Reconstruction - Lime St.)
ACTION: Approved
the appropriation of funds and authorized Mayor and City Clerk to execute on behalf ofthe
City.SENATE BILL 2.8 Request that City Council support SB
854 (O'Connell) to
return approximately $3
million in
previously diverted
property tax to the Orange County Transportation Authority. (OC1300.D.l)FISCAL IMPACT: None.ACTION: Approved.
TRACT MAP 2.9 Request Council approval for recordation of Final Tract
Map No. 15398
located at
the northeast
CITY COUNCIL MINUTES July 8, 1997
2. CONSENT CALENDAR (Continued)
MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez The Consent Calendar
was approved as recommended.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ Mayor Coontz reported
that the Orange Police Department, with the assistance of the Orange County District Attorney,
is in the midst of an investigation of Orange Resources Recovery Systems (ORRS). The
City Manager was asked to briefly explain the current situation; what actions may lie
ahead; where the City has been; and where the City is going. Questions were presented to the
City Manager as follows:What actions has
the City taken regarding the entire issue?What specifically has
the City done to protect City and rate payer funds?What alternative provisions
have been made for trash and recycling services?How can the
City be certain that it can maintain its low trash rates?What are your
plans, or goals, as we move forward through this issue?The City Manager
explained ORRS's operation of their recycling program and Materials Recycling Facility (MRF)
under the City contract. It is expected that the police investigation will continue for
some time. The investigation came about, in part, because of irregularities discovered in an
ORRS audit, which is required by the City's 1994 contract. The City staff reacted to some
of the increasing evidence of problems first touched upon by ORRS's auditor, by hiring its own
independent outside audit firm to review specific ORRS financial information.Information from this
work led to the current police investigation.The City staff
ultimately recognized and addressed the problem and continues to take action each week to ensure
that the City and the rate payers' interest are protected. Staff has prepared a two-page summary document
of actions that the City has taken to date which will be made available in the City
Clerk's office. Staffhas made it a priority to ensure that Orange residents and businesses will continue
to receive uninterrupted trash collection and recycling service. The City Attorney wrote Orange
Disposal Service (ODS) and Orange Resource Recovery Systems ORRS) to advise
them of several matters in which the City considers them to be in default of contractual requirements. The
staffhas negotiated proposed contracts with expert consultants in the trash and
recycling business. The consultants would undertake an independent study of current operations and
rate structures and recommend changes (Item No. 6.2 on the agenda).PAGE 4
CITY COUNCIL MINUTES July 8, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
The City Manager stated the following goals:
to get the City's money back and recover the cost of the investigation;
continue to keep the rates low and well accounted for;
assure continuous trash pick-up and recycling
service;attend to the many other important and positive projects that the City is
undertaking,especially in the area of economic development;
and review the city's own internal controls on operations, contract management, and
compliance.The City Manager indicated the current plans are as
follows:1. The City hire its own independent accounting fIrm to re-audit and render an opinion
on the ORRS fiscal year ending June 30, 1996. The firm will be asked to audit and
render an opinion on the internal controls and procedures. The City has concerns and questions
with a recent report that
was received.2. The July 22nd agenda will likely include downward rate adjustments. Adjustments
come due this time of year and are not associated with the ORRS investigation. The
rate reductions will be for collection and recycling and will include a one-time rebate
associated with the revenue the City has earned to date through the sale
of recyclable materials.3. Timely reviews will be made ofthe internal control procedures that can
be observed and tested by the City staff to ensure
full contract compliance.4. Internal auditors, when brought on board, will be familiarized with the
entire City operation and its history. Risk assessment will be the tool used by the internal auditors
to monitor the City's operations. The auditors will report directly to the City Manager.
Part of their mission will be to review the City's own internal controls on
contracts, financial operations,and to recommend improvements and/or changes throughout the entire
system. It is anticipated the report will be brought before Council at the July
22, 1997 meeting.5. The Hilton Farnkopf & Hobson contract will provide the City with
significant guidance on deciding the City's future solid waste and recycling operations. The
contract will include ways to improve the City's diversion rates as
mandated by AB939.6. The City must patiently await the outcome of the criminal investigation. The
City does not want its actions or words to jeopardize the investigation
in any way.7. Upon completion ofthe investigation and/or subsequent litigation, the
City will conduct another rate review and place the appropriate revisions, if any, before
the
Council for consideration.Council discussion ensued relative to a management audit completed by an
independent firm or augmenting the audit with a contract currently in place which would
provide an independent assessment of how the organization is working today. This would give the
internal auditors a reference document that will assist them as they begin their own assessment.
Timing was an important issue because the City would not want to jeopardize the
investigation. It was suggested the Council Waste Management Committee be brought back to run
parallel with the management audit. The City Manager was instructed to provide a chart to
show exactly
CITY COUNCIL MINUTES July 8, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
each audit contract is to achieve and to track the success of changes made according to the
recommendations.
The City Manager clarified the City is in negotiations with an auditing firm to revisit the current
audit the City has just received on ORRS from Alder, Green, and Hasson. The City has accepted
the audit completed by Mr. Steven Nakada of ODS, which contains a rate analysis
recommending a decrease. It is believed that it is in the best interest of the taxpayers that the
City re-audit and also review the ODS audit. It was indicated that the management audit is
an excellent idea, as it has been eight or nine years since the last management audit done by
Arthur
Young.A Request for Proposal will be developed with goals and objectives the City hopes to
accomplish and will be brought back to Council for further discussion and guidance. A great deal
will depend on how the City moves forward in working jointly with the Police Department,
District Attorney's office, and the City Attorney. It is important that the process does not interfere
with or compromise the City. The system of checks and balances will take care of itself, if
properly carried out in an internal control system. Systems will be looked at on how each contract
needs to be
monitored.Carole Walters, 534 N. Shaffer Street, commented that the residents of Orange have no faith
in the Mayor and Council; referred to previous cases in which the City lost money; spoke
in opposition to residents having to pay recycling fees; requested the water bill be itemized
and residents be refunded recycling monies paid for the last year and a half; suggested the
contract with the Hambarian's end immediately, indicated one company should not have both the
trash and recycling contract; reported residents have expressed their support for a class-action
suit; and stated that the City Attorney needs to find time to review all documents that come
through
his office.Carole Walters, speaking on behalf of the Orange Taxpayer's Association, asked that the
City go out for bid on recycling; that money be paid back, with interest, that was made off the
money that was used; would like the contract with the Hambarian's be pulled; requested the water
bill be broken down so residents know what they are paying for; and asked why a member
of the Orange Taxpayer's Association doesn't have a seat on the oversight
committee. Numerous questions and issues of concern were raised relating to Orange Resource Recovery
Systems and Orange Disposal Service. (Letter is on file in the City Clerk'
s office.)Barbara DeNiro, (address on file), referenced her written comments submitted to Council
at the June 24th meeting; asked who is monitoring the City's contracts; expressed the need for
a paper trail; and commented that the elected officials need to be
held accountable.Herman Martinez, 2034 W. Orchard, expressed his disturbance over the trash issue and
the City losing money, indicating he hopes it doesn't
happen again.
CITY COUNCIL MINUTES July 8, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
Nick Lall, 6231 Mabury Avenue, expressed his comments and concern for the residents of
Orange due to the recent allegations concerning ODS and ORRS.
Z. Harry Astor, 333 City Blvd. West, Counsel for ODS and ORRS, stated that exception is taken
to the criticism of both corporations. Mr. Aster commented the Hambarian's take exception to
the criticism of the City Council and City staff. Incorrect statements are made when somebody
concludes that the citizen's of the City of Orange have been hurt. The City Council and staff are
acting responsibly in their endeavor to investigate the facts before making final decisions and the
citizen's ofthe City of Orange should do the same. Both corporations have acted responsibly.
ORRS has not committed fraud. The allegations, based upon reports in the press, are that an
employee has mishandled funds and that revenues have not reached ORRS. What this is all
about will be found out when the investigation is finished. Whatever funds that the auditor has
advised us have been missing, Sam and Alyce Hambarian personally have placed those funds
into corporate coffers, in the bank accounts, so that the citizen's of Orange and the City Council
need not worry that there are funds missing in some way that affects the rate paying situation.
The Hambarian family is acting responsibly, to the best of their ability, to see that this matter is
resolved quickly and responsibly. The City has an obligation to its contractors; the contractors
have an obligation to the City, which includes the official staff of the City, the City Council, and
the citizens of the City of Orange, to come to a conclusion, before the investigation is totally
unwarranted. At this particular time, neither corporation is aware of any funds that are missing.
It may be, when the investigation is finished, there will be additional funds. Sam and Alyce
Hambarian are willing, and they are presently in negotiations with the City Attorney, to deposit
funds, equity funds, that will support any possible shortfall.
Adele Graves, (address on file), commented it would be nice to hear from the City Council that a
mistake was made and indicated that the citizens have a right to comment.
Richard Carlson, 159 S. Cambridge, reported he contacted two United States Senators and a
Congressman about the City Charter; indicated he was curious if Council was aware that a
separate criminal investigation is going on within the City; asked how Mr. Loertscher knew what
pocket the money went to, and how long he knew it?
The City Attorney reiterated that it is not within the long term interest ofthe City to answer
questions that involve the criminal investigation.
Luci Grismer, 445 Normandy, P1acentia, asked why ORRS was given three extensions to rectify
the problem; who was dragging their feet; and why the contract wasn't sent out to bid in 40
years?
In response to the three extensions, the City Attorney responded, the City was requested by the
ORRS auditor for the three extensions. ODS has done business with the City for 40+ years and
no problems had been noted in the past. At the time the City was assured that the audits would
be brought in. A response could not be provided on who was dragging their feet as it touches
PAGE 7
CITY COUNCIL MINUTES July 8, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
upon the criminal investigation and the comments made by Mr. Carlson. It is not known that the
contract was not sent out to bid, or if anyone in the City is aware of what did or didn't occur
during the past 42 years. Staff has spent several days contacting other industries for the
recycling portion and has received some proposals. The recycling contract was not put out to a
formal competitive bid, but staff did request and receive proposals from other companies, which
is just now being uncovered. Numerous factors led staffto recommend that the City contract
withORRS.
4. REPORTS FROM COUNCILMEMBERS - None 5.
REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 5.
1 Accept resignation submitted by Joseph Baker, effective June 30, 1997, from the Orange
Public Library Board of Trustees and direct the City Clerk to advertise for applicants. (
C2500.l.1)MOTION -
Spurgeon SECOND - Murphy
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon, Alvarez Moved to accept the
resignation, with regrets.6. REPORTS FROM CITY
MANAGER 6.1 Update on
the Orange Disposal Service/Orange Resource Recovery Systems.A2lO0.0 AGR-2188)
NOTE: Refer to
Item No.3 for the City Manager's Report and discussion.6.2 Award
of an independent consultant contract to Hilton, Farnkopf & Hobson, LLC,in an amount
not to exceed $137,000 for a comprehensive solid waste and recycling analysis, and to
provide recommendations for changes in delivery of these services. This study will include:
Review of general
company practices, including management structure, personnel policies and billing
and revenue procedures.A cost of
service review.Review of collection
services.Evaluation of Materials
Recovery Facility (MRF) services, including an independent estimate of MRF
construction costs.Review of existing
contracts.Recommendations on meeting
state mandated landfill requirements. (A2lO0.0 AGR-2858)PAGE
8
CITY COUNCIL MINUTES July 8, 1997
6. REPORTS FROM CITY MANAGER (Continued)
FISCAL IMP ACT: Funds for this contract are budgeted in Sanitation Fund Account No. 220-
5022-
426700.The City Manager reported that the proposed scope of services and contract price have
been modified. The most significant proposed changes to the scope of services are as
follows:The deletion of original Task 4.1 which was a review of the ODS and ORRS
customer complaint
system;The deletion of original Task3.3, which was an evaluation of ODS and ORRS's
equipment maintenance
procedures;The deletion of the original Task 4.2, an evaluation ofORRS's proposed Materials
Recovery Facility
Plan;The addition ofa new engineering oriented task to evaluate ORRS's Materials
Recovery Facility (MRF) construction costs and site evaluation ofthe
MRF;The addition of a new task to provide the City with up to three mid-project status
reports; and The addition of a $25,000 contingency in the proposed contract to
provide additional available contract work hours which may be applied to tasks not currently identified, or
to be applied to additional testing work not presently envisioned, but which
may potentially become necessary as the Hilton Farnkopf & Hobson work progresses and new
information
is revealed.The net result of the proposed amendment to the consultant's scope of services, and
the contract price negotiations, is the proposed base contract of $112,000, plus a contingency of $
25,000.The total proposed maximum contract amount is $
137,000.Despite the net addition in work hours negotiated for the project, the contractor has
agreed to retain the original project time schedule of six months. If the project goes
as currently anticipated, the consultant's work would be completed in January, 1998, and their
final report would be presented to Council in February, 1998. The time frame is dependent
upon the continued cooperation of ODS and ORRS management in providing the needed information
in a timely manner, and whether there is a need to broaden the scope as the City
moves forward.Mayor Coontz expressed concern with the expenditure of$137,000 before the
investigation has concluded; asked if the evaluation is similar to a management audit; what the expected
result of the study will be; and how the City will
use it?The City Manager explained the City's current contract structure has a number of
future options,i.e., the contract could be continued with the current holders, the contract could
be terminated and another contractor come in, or the contract could be sold and assumed with the
City'
s permISSIon.
CITY COUNCIL MINUTES July 8, 1997
6. REPORTS FROM CITY MANAGER (Continued)
The Director of Public Works added a key element in the process is a baseline needs to be
established as to what trash collection and processing services should cost the community. With
the information the consultant provides, the City would be in a position to evaluate future
proposals more effectively. In order to proceed to get the best service the City can at the best
price, an evaluation is needed of the City's rate structure and an assessment of where the City's
operations stand with respect to what is common industry practice. Hilton Farnkopf & Hobson is
being recommended because of their broad-based knowledge and experience in the solid
waste industry and strong financial
background.Mayor Coontz inquired whether Hilton Farnkopf & Hobson could provide a comparative
report of the different cities and systems, without a specific study being done; requested clarification
on whether or not the City of Orange is the only city in the County where the City sets the rates
and requires an audit; and if so, why would the information be applicable ifthe City goes
with another trash
contractor?Laith Ezzet, Vice President, Hilton Farnkopf & Hobson, LLC, Newport Beach, reported that
in order to provide a comparison, information and specifics about the City and contractor's
existing methods of operation are needed. The study would be immensely helpful and could be
made available to contractors proposing bids, if the City should decide to go out for competitive
bids,by providing information on how many routes are being run, the existing costs, and whether
the routes are efficient. Uncertainty increases the costs to bidders to propose a bid. In
Southern California, it is more prevalent that cities contract the price. The City of Orange is probably
the only city in the County of Orange that sets its rates. In Northern California there are
many jurisdictions that have cost-plus contracts like the City
of Orange.Councilman Murphy confirmed from Mr. Ezzet that the study provides a baseline and
level of information that the City currently does not have in measuring the operations, the
costs, the collection services, the building costs ofthe facility, the existing contract, and the
state mandated landfill
type requirements.Councilman Spurgeon requested, through the City Manager, that the report be
written in layman's language, contain an executive summary, the highlights be understandable,
and the supporting data be
easily found.Mayor pro tem Slater commented that although $137,000 is a lot of money, it is a
very good investment, considering all the money involved in the trash industry; stated it is
important to know what all the financial implications are surrounding the crisis for ORRS and
ODS; indicated that he is anxious to move forward with the study and know every little detail of
the contracts and the whole situation; and that the report has to be done ifthe City winds up going out
to bid.
CITY COUNCIL MINUTES July 8, 1997
6. REPORTS FROM CITY MANAGER (Continued)
Councilman Alvarez asked Mr. Ezzet ifthere is a reason for the six month time table; what
happens with the contract if cooperation is not received; and because of the public/private
venture, will recommendations be made on how the City should have structured its relationship
with the current company and recommendations on how a new relationship should be structured?
Mr. Ezzet responded, six-months is an estimate based on performing this type of study.
There has never been an experience where the information was not available. In the event that
did occur, he would meet with the City Manager and return to the City Council. The contracts
with ODS and ORRS are being evaluated and recommendations will be made on how to revise
the contracts, as may be appropriate. Once the project plan and executive summary are
complete,they will be brought back to Council for review. All Councilmembers will receive
original copies of the consultants
report.Carole Walters, 534 N. Shaffer, commented she understands the consultant has a very
good relationship with the Hambarian's and their attorney and suggested the City Manager look
into the relationship before a contract is
signed.Z. Harry Astor, on behalf of ODS and ORRS, commented that any kind of responsible
audit consultant is welcomed. It was indicated that the bottom line with these kinds of contracts
are what the price that is charged to the citizen of the particular city, and what the service consists
of.It was suggested that the City examine services in the City of Orange with the other cities in
the County of Orange, or elsewhere, as to the rates and to the unlimited service which ODS
has supplied. ODS and ORRS have an existing staff and a contract they are working at. The City
is placing a burden on itself and a tremendous logistics problem for the people at ODS and
ORRS.If there is some way that the police investigation is done, the City could make a comparison
of what other cities do. If the comparison is between a cost plus vs. a bid contract, they are
two totally different animals. More facts should be in place before doing additional consulting,
but ODS and ORRS have no objection to doing it at the proper
time.Councilman Spurgeon asked the following question for the record: "Do you have any
kind of a personal relationship or acquaintance with any member of the Hambarian family, or
Mr.Astor, or his
firm?"Laith Ezzet responded: "No, we don't. I know who Mike Hambarian is through the
California Resource Recovery Association, which is one of the trade associations that a lot of
local governments belong to, that we belong to, and some haulers belong to. I have met him at
that,but I know most of the garbage companies through those organizations. I know who he is, but
I have no relationship with
him."Councilman Spurgeon: "Nor does any other member of your firm, to your
knowledge?"PAGE
CITY COUNCIL MINUTES July 8, 1997
6. REPORTS FROM CITY MANAGER (Continued)
Laith Ezzet responded: "No". Hilton Farnkopf & Hobson provides solid waste consulting
services exclusively to public agencies, cities and local government, and special districts. They
do not work for the private sector, or any garbage company. They do that to avoid conflicts of
interest in exactly these types of situations, which it is believed is one of the reasons they were
selected.
The City Manager reported other City Manager's in the County were contacted regarding the
firm of Hilton Farnkopf & Hobson. The firm was hired by the Orange County City Manager's
Association to negotiate with the County on the landfill. The City Manager's Association
benefited from their work.
Councilman Spurgeon wanted to establish the fact that there is no personal or professional
relationship with the consultant and the Hambarian' s and requested that an appropriate clause be
added to the contract.
The City Attorney indicated every consultant agreement with the City has a provision which
provides that the consultant guarantees there are no conflicts of interest. If it is later determined
that there is a conflict of interest, the consultant would be in breach of their agreement, and the
City would have cause to terminate.
MOTION - Mayor Coontz SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to:Approve
a consulting
services contract with Hilton Farnkopf & Hobson, LLC;Authorize the Mayor
and City Clerk to execute on behalf ofthe City;The consultant provide
for Council's review and approval: the project plan; executive summary; and the
goals and objectives;The project plan
clarify what the goals and objectives are.NOTE: The City
Council recessed at 6:55 and reconvened at 7:05 p.m.7. ADMINISTRATIVE REPORTS
7.1 Report
from the Director of Public Works on the composition of an Ad Hoc "Handy Neighborhood Preservation Committee"
to study traffic conditions at the intersection of Handy St. and
Collins Ave. (OR1800.1.17)The Director of
Public Works reported staff is recommending that citizen membership on the Committee be limited
to residents living within the immediate area of Collins Avenue and Handy Street, which is
the area bounded by Wanda, Walnut, and the SR55 Freeway. It is recommended PAGE 12
CITY COUNCIL MINUTES July 8, 1997
7. ADMINISTRATIVE REPORTS (Continued)
that representatives from Public Works, Community Development, Community Services, and the
Police Department be selected for the Committee. Further, it is recommended that a
representative from the Handy Elementary School staff and the Handy Elementary School
Parents Teachers Association serve on the committee. The scope of the study should be limited
to the following topics:
1. Speed and volume of traffic on Handy St. and Collins Ave.
2. The installation of bike lanes on Collins Ave. between Tustin St. and Wanda Rd.
3. Traffic patterns around Handy Elementary School.
4. Pedestrian safety around Handy Elementary School and Handy Park.
5. Neighborhood parking conditions.
6. Design features of the traffic signal at the intersection of Handy/Collins.
It is anticipated that most of the effort will be after normal working hours and recommended that
a consultant be hired by the City to facilitate the work of the Committee and to formulate the
Committee's recommendations. If Council concurs with the proposal, staff would bring a report
back to Council with a "Scope of Work" and a budget estimate for the services. Additional
budget authorization/appropriations will be needed to retain the services. It is expected it will
take 60 days to retain consultant services and four to six months, possibly longer, depending
upon the depth and scope of data collection involved, to complete the study. An outside time
frame could be as long as one year. Four people volunteered for the Committee at the last
Council meeting, however, no recruitment attempts have yet been made.
Council discussion ensued relative to cost of the consultant; the little accident history at this
intersection; and the time frame when residents will be notified. It was suggested notices be sent
the first week in September when school begins which would allow the opportunity for more
participation from residents and the school association.
Tom Van Ouse, 911 N. Clinton, a volunteer on the Handy Neighborhood Preservation
Committee, spoke in support of the consultant and suggested the parents ofthe Handy School
children be involved on the Committee.
MOTION - Mayor Coontz SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez PAGE 13
CITY COUNCIL MINUTES July 8, 1997
7. ADMINISTRATIVE REPORTS (Continued)
Moved to:
Approve the formation of the "Handy Neighborhood Preservation Committee" as outlined in
the report, with the stipulation that communication go out through the schools to the parents
and the Parents Teachers Association to obtain more volunteers and that the City is
proceeding with the Committee; and
Authorize the Public Works Director/City Engineer to develop a "Scope of Work" and an
estimate for Consultant Services to facilitate the Committee's study and recommendations.
7.2 Report from the Director of Public Works on the adoption of a policy for the
implementation of a Neighborhood Parking Permit Program.
The Director of Public Works summarized the proposed features being recommended:
The Traffic Engineering Division receive the request for permit parking.
The Traffic Engineering Division determine the boundaries of the permit area, prepare the
petitions and return it to the proponent(s) to circulate for signatures and return to Traffic
Engineering Division.
Staff review the petitions and agendize for consideration by the City Traffic Commission.
It is recommended that the $1500 application fee be retained. There is a need for the
professional level position to review the data analysis and make recommendations. The major
criteria approved by the Traffic Commission is as follows:
1. The area must abut an institutional, commercial, industrial or multi-family housing use
which is generating the parking
intrusion.2. A minimum of 55% of the area residents must sign the petition in
favor.3. Any identified problem must be ongoing - not occasional or temporary.
4. The majority of the available on-street spaces in a proposed permit area must be
occupied during the perceived problem
times.Council
discussion:Mayor pro tem Slater gave the following suggestions: A person could make a $500
deposit.After Public Works has made a preliminary field review, the person could then be informed
by Public Works ifit would be feasible to move forward. At that time, if they still wanted to
move ahead, the deposit could be increased to $1500 as a non-refundable
administration cost.The Director of Public Works responded, administratively, the suggestion may
be practical,indicating it is similar to the plan check process. A concern would be
whether enough information would be available at the $500 deposit level of expenditure in order to
determine if the program
should proceed.
CITY COUNCIL MINUTES July 8, 1997
7. ADMINISTRATIVE REPORTS (Continued)
Mayor Coontz expressed concern with the process being cut off before it is completed and the
public not having an opportunity to appear before the Traffic Commission or the City Council.
The City Attorney commented that the correct wording would need to be provided; noting this is
only a preliminary analysis; determinations are made at the sole discretion of the Traffic
Commission; indicating great caution would have to be taken and not overtly discourage people
from going forward.
Carole Walters, 534 N. Shaffer, commented that the residents on Cambridge in the area ofPJ
Mead's Coffee Shop are impacted by the parking and should not have to pay for the permit
parking.
Richard Carlson, 159 S. Cambridge, spoke in opposition to the neighborhood parking permit fee;
indicated that Mayor pro tem Slater should abstain from voting on this issue because of a
relationship; and that the issue needs to be settled as soon as possible.
Mayor pro tem Slater responded this issue is not directed at anyone location but is a policy that
will be applied city-wide so he does not have any conflict of
interest.The City Attorney concurred with Mayor pro tem
Slater.Councilman Murphy suggested considering the option of no fee for data collection and
the review process. If a fee is established, it be added to the costs of the hearing process and
staffs time for report
preparation.Mayor Coontz asked what affect the parking permit fee will have on the City budget?
The Director of Public Works explained that these types of activities are very narrowly focused
and are usually special interest. The public policy issue is how much ofthe cost should be borne
by the person who benefits from it vs. how much should be borne by the general
taxpayer.Barbara DeNiro, (address on file), reported that St. Joseph's Medical Center, located at the
north west corner of Cambridge and Chapman, has only enough parking for its patients and does
not having enough parking for its
employees.Councilman Spurgeon indicated a letter regarding this issue had been sent to the Medical
Group in the past; indicated it may be under new management at this time, and suggested another
letter be sent
out.MOTION - Slater
SECOND - Alvarez AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez PAGE 15
CITY COUNCIL MINUTES July 8, 1997
7. ADMINISTRATIVE REPORTS (Continued)
Moved to:
Continue to July 22, 1997 meeting to allow staff to come back with a choice of options, some
of which were mentioned tonight, with regards to the fee basis for implementing this
program, and
The City Attorney is to provide input on the fee options suggested in relation to the public
not having an opportunity to appear before the Traffic Commission or the City Council.
7.3 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. (Continued from June 24,1997.) (S4000.S.3.1.1)
STAFF RECOMMENDATION: Deny the appeal and approve the City Traffic Commission's
recommendation and direct staff to paint 20 ft. of red curb on both sides of the driveway at
271/283 S. Oak St.
NOTE: The appellant was not present.
MOTION - Spurgeon SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to deny
the appeal and approve the City Traffic Commission's recommendation and direct staff to
paint 20 ft. ofred curb on both sides of the driveway at 271/283 S. Oak Street.8. LEGALAFFAIRS 8.
1 ORDINANCE
NO. 15-97 (SECOND READING)An Ordinance
of the City Council of the City of Orange relating to non-point source storm water
discharges.) (Storm water run-off) (A2500.0 Water
The Director of Public Works reported the County of Orange has developed a Model Water
Quality Ordinance, which must be adopted by the City no later than July 31, 1997, in order for
the City to meet the requirements of the Santa Ana National Pollutant Discharge Elimination
System (NPDES) Permit.
MOTION - Spurgeon SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance
No. 15-97 have second reading and be adopted and same was passed and adopted by
the preceding vote.PAGE 16
CITY COUNCIL MINUTES July 8, 1997
9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
10. ORAL PRESENTATIONS
Carole Walters, 534 N. Shaffer, expressed concern that the City is allowing Fairhaven Memorial
Park to dump fill dirt by Hart Park for ten years.
The Director of Public Works explained, at Council's direction, Fairhaven Memorial Park was
instructed several weeks ago to end the dumping of the clean fill dirt.
Robb Morris, (address on file), expressed his disturbance with Mr. Bob Bennyhoff and his ability
to roam City Hall; indicated he has been observed by citizens entering unauthorized areas; has
free access to private offices of City officials; and questioned his actions.
The City Manager responded that recently the departments have been asked to remind Mr.
Bennyhoff to wait to be invited in or to discuss his issues at the counter.
Barbara DeNiro, (address on file), commented that she is a concerned and responsible citizen;
expressed concern with the 4:30 p.m. agenda going beyond the 7:00 p.m. agenda session;
indicated a better understanding is needed of conflict of interests; stated she will continue to
address addendum's on large contracts, broken contracts; and that companies are responsible for
alleged fraud.
Richard Carlson, 159 S. Cambridge Street, requested a meeting with Mayor Coontz to avoid a
litigation matter; asked ifthe City will be here next year talking about mishandling downtown
redevelopment money; and if Council is aware there is a separate criminal investigation going on
with the redevelopment agency.
Mayor Coontz indicated to Mr. Carlson that she will meet with him and will have someone else
present at the meeting. The City Manager reported he spoke with Mr. Carlson today for the first
time and became aware of the 400-page document. Mr. Carlson was asked to deliver
the document to his office. Staffhas spent a great deal oftime this past year trying to go through
all of the redevelopment accounts and get them straightened out to be sure there is a handle on
the contracts. Many contracts need to be audited for compliance, and that is in part, why it is
being recommended that an internal audit structure be
created.Robert Hill, 975 N. Center Street, spoke regarding his perception of unethical behavior by
some officials and heads of agencies; indicated he had not received a response to certified letters
that were sent approximately a week ago to Mayor Coontz and the City Attorney, regarding
an agency in the City; and requested an acknowledgment that his letter was
received.The City Attorney stated it was a Public Records Act request and he believed the
Police Department did supply Mr. Hill with one report, based upon a completed investigation.
The other document was part of an ongoing investigation and is not to be provided under the
Public Records Act. Mayor Coontz indicated she transmitted Mr. Hill's letter to the Police
Department and City Attorney's office. The City Attorney was directed to follow through on the responses
to Mr. Hill's
request.PAGE
CITY COUNCIL MINUTES July 8, 1997
10. ORAL PRESENTATIONS (Continued)
David Casselman, 2924 E. Lomita Avenue, addressed crime and public safety issues in his
neighborhood which were caused by abandoned railroad tracks. The area is an extension of
Wanda which dead ends into Collins, and from Collins to Walnut to the Fire Station. Mr.
Casselman requested the area needs additional lighting and better police access. Council was
asked to visit the area during the day. Lieutenant Ames was contacted at the Police Department.
Mr. Casselman said he would be happy to head a citizen's committee and support improvements.
Mayor Coontz responded the City tried to clean up the area with federal funds and promoting a
bicycle trail, lighting, and other improvements. Mayor Coontz directed Mr. Casselman to speak
with Lieutenant Ed Tunstall.
11. RECESS
NOTE: The Council recessed to the Closed Session after the 7:00 p.m. Session (see Page 25).
7:00 P.M. SESSION
12.1 INVOCATION
Pastor Ray, Church of the Living God
12.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Coontz
12.3 ANNOUNCEMENTS - None 12.
4 INTRODUCTIONS - None 12.5
PROCLAMATIONS - None 12.6 PRESENTATIONS -
None 13. ADMINISTRATIVE REPORTS 13.
1 Report from
the Director of Public Works regarding dirt hauling operations and a request for an Addendum
to Transportation Permit No. 10078 to increase the number of trucks from 5 to
15 for the Wal-Mart development under construction at The Mall of Orange (continued from
June 24,1997). (C2500.M.20)The Director of
Public Works reported trucks had been in violation of the hauling permit issued to the contractor
for the Wal-Mart project by using Canal Street and Heim Avenue and operating more trucks
than the permit allowed. The Police Department has issued citations. A request was received to
approve additional trucks, as the amount of haul was over 30,000 cubic yards, and it requires Council
approval to make changes in the conditions ofthe permit. There have been PAGE 18
CITY COUNCIL MINUTES July 8, 1997
13. ADMINISTRATIVE REPORTS (Continued)
some changes in the subcontractors working at the site. With more trucks, the duration of the
hauling operation would be reduced, which would be beneficial to the adjacent residential area.
Mike Stanley, Spirit Mountain, Oregon, general contractor for the project, explained the truck
drivers are responsible for their own permits. A local subcontractor was hired to do the work,
but has been terminated due to his violations of the permit.
Sharon Rockmore, (address on file), spoke in opposition to increasing the number of trucks;
indicated the dirt flow from the project has not helped her chronic health problem; the trucks
generate a lot of noise; and urged Council to deny any future requests for the Wal-Mart
project.Mr. Stanley assumed the responsibility and apologized for the subcontractors he had hired
and indicated efforts were made to control the dust by using the work pile as a windscreen. It
was indicated that additional trucks are not needed for hauling of dirt or
debris.The Director of Public Works confirmed that only trucks requiring a hauling permit are
those hauling dirt or
debris.Carole Walters, 534 N. Shaffer, asked ifstafflooks at the projects to see ifthe work is
being done as Council approved and suggested the City staffbe
reorganized.The Director of Public Works responded the Police Department enforces traffic regulations
and City inspectors handle the on-site issues, grading, building, etc., to ensure compliance
with
City codes.MOTION - Mayor
Coontz SECOND - Murphy
AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved
to withdraw the item on the basis that the request was not needed.14.
PUBLIC HEARINGS 14.
1 APPEAL NO. 437; CONDITIONAL USE PERMIT 2167-97; STUART'S
ROLLERWORLD
The public hearing on petition by Stuart's Rollerworld to appeal the decision by the Planning
Commission on March 17, 1997 granting a Conditional Use Permit request to allow permanent
installation of the existing fabric covering over the roller hockey rink, with other improvements
proposed to control sound was continued from June 10, 1997 to this date. The applicant is
appealing a condition imposed with the approval which limits the facility's hours of operation.
The property is located at 2190 N. Canal Street (northwest corner of Meats Avenue and Canal
Street). (A4000.0 APP-
437)PAGE
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
Negative Declaration 1511-97 has been prepared to evaluate the environmental impacts of
this
project.THE APPELLANT STATES THE FOLLOWING REASONS FOR THE
APPEAL:The facility operates within City noise
standards.Operating hours for the master complex have been established. The Commission's
discussions and actions were based upon issues inherent in uses of the entire complex and not
specifically related to the applicant's
use.The Commission imposed additional restrictions after closing the public hearing
without allowing the applicant's
response.On April 21, 1997, Chairman Bosch stated his motion restricted only the scheduling
of Organized Games". Other activities before and after the hours stated were allowed.
The Commission then further changed the parameters ofthe applicant's business without
the applicant's
input.The Director of Community Development summarized the history of the "Super Sports"
project,as approved by Council in April, 1994. During the history ofthe project, a number of
problems have been heard by surrounding neighbors, which have included non-compliance with
hours of operations, noise, lights, and errant golf balls. Most ofthe problems have been
resolved. The dome roof covering, which was approved in February or March, 1996, for a six-
month period of time, is the focus
of the application.The reason for the applicant requesting the change to the original approval is to
provide shade for the skaters. The skating surface is sunlight sensitive material that deteriorates
in the direct sunshine. If the application is approved, it is proposed to utilize
the existing dome;modifications would be required to it in order to allow it to conform to
the Uniform Building Code; and a building permit issued. The applicant has proposed that he would
clean the dome and provide a plan for on-going maintenance to improve the exterior
appearance. The ends of the roof covering would be closed to contain the noise within the
structure. The applicant would modify the boards surrounding the skating area to deaden the sound to make
it a more livable situation. Ventilation or air conditioning would be required for
the facility. Landscaping would be installed at the south end ofthe dome facility and along
Meats Avenue between the skateboard ramp area and Meats. Council may wish to enhance the
screening
which would be provided.The Planning Commission recommended decorative flags or trellises that would
add to the dome to make it more festive and attractive for the surrounding area.
A security guard primarily responsible for the parking lot area, from the hours of 6 p.m. to one half
hour past the closing time on all days when hockey would be occurring. Also, more restrictive
hours of operation for the roller hockey portion ofthe facility, 8 a.m. to 9 p.m., Monday through Friday; 9
a.m. to 9 p.m. on Saturday; and 10 a.m. to 9 p.m. on Sunday. These hours are
different from the original hours that were required of the "Super Sports" facility, but apply only
to the
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
facility. The Planning Commission approved the project subject to the 12 conditions listed in
Resolution No. PC-
14-97.If not approved, the applicant would be required to remove the dome tent covering and
to operate under the rules of the original conditional use permit, which allows outdoor roller
hockey with hours of operations that would allow the 10 p.
m. closing.Stuart Silver, 2190 Canal Street, appellant, indicated the main concern ofthe facility is
the safety of the children. Losing the dome tent covering would mean loosing the floor, and they
wouldn't be able to play the hours they need to play. Concerns ofthe neighbors were listened to
and on numerous occasions, efforts were made to work with them. Letters were sent out
and sound engineers were hired at $10,000 to show the neighbors what the facility is all about.
It was proposed to close both ends to reduce the noise from 70 dba's to 52 dba's, a 72%
reduction in noise loudness. A sound engineer report has been done which is way below what the City
says is acceptable. Architects and structural engineers have been hired. Mr. Silver indicated
he was willing to live with all the conditions imposed, except the hours, which will hurt
his facility tremendously. Mr. Silver proposed: to spend whatever money it takes to make the
facility 72%quieter than it presently is; to landscape and paint the facility; to install a colored
silver metal tubing, as Disney has; and to start the Saturday and Sunday games at 10 a.m. It
was further proposed, if Council approves the dome tent covering, that the dome tent covering
would be cleaned within a matter of days, or it would be painted with a maintenance
free, polyglycoat spray which would make it look
brand new.Mayor Coontz commented that she and Mayor pro tem Slater served on an Ad
Hoc Committee and had visited the site and discussed some of the following issues: The fence on
Meats has never been repaired; the Fire Department has not ascertained as to whether the treatment
for the tent is acceptable; and the problems are not just the hours and the noise, but also the looks
of
the facility.The Acting Fire Chief stated quite a few conditions would have to be met as far as
the Fire Department is concerned. The requirements of Fire Code is for an air supported
structure for only six months. In order to keep the structure, there is a requirement for sprinkler
systems, and the roof, under the conditional use permit, would have to be
Class A.MAYOR COONTZ OPENED THE
PUBLIC HEARING.Speaking
in favor:Barry Flynn, 2579
N. Franki Alex Bellehumeur, 622 Napoli Court,
Long Beach John Aleccia, 510
N. Orange Lee Fisher, 523
N. Orange Chad Kirkwood, 2190 N. Canal (submitted a card
in favor)Terri Caldwell, 1336 E.
Lawson Lane
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
Reasons for being in favor: Understanding of the cost of investing money into improvements
from a business perspective; impact on concessions ifhours of operation are changed; adults and
children use the facility; it is the nicest facility around.
Speaking in opposition:
Steve Edwards, 1lO6 Cumberland Road (willing to compromise)
Richard and Lucia Elgas, lO32 Cumberland Road (willing to compromise)
Wally and Barbara Pankratz, 836 Cumberland Road (favors reduced hours of operation)
Noreik Zadah, 1044 Cumberland Road
Michael Mikulics, 1119 Cumberland Road
Concerns expressed were the noise coming from the facility, the hours of operation, and the
unattractiveness of the dome.
Kent Hawkins, 2190 N. Canal, project owner of the facility, commented the security company
helps close the facility every night. Roller hockey ends at 10 p.m. and the facility shuts down at
10:30 p.m. An application was submitted to the City relative to the fence on Meats that has not
been repaired, indicating it must have slipped through. The blue tarps near the lockers are used
to block the players when going from the portable showers to the locker rooms.
MAYOR COONTZ CLOSED THE PUBLIC HEARING.
REBUTTAL
Stuart Silver, 2190 Canal Street, commented the only other alternative would be to build another
roller hockey rink and close down at 9 p.m. Mr. Silver indicated he would also be willing to
compromise the morning hours of operation.
The City Attorney indicated that Mr. Silver does have the option of not abiding by the decision,
i.e., he can take the tent down and revert back to his original CUP, which would allow him to
operate untillO p.m. That CUP can be modified or revoked ifthe City can present evidence that
shows the CUP is either being violated or otherwise the operation has created a nuisance.
Councilman Alvarez commented that he could not support this issue as he would like to see the
tent gone.
MOTION - Mayor Coontz SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon NOES - Alvarez PAGE
22
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
Moved to:
Deny the appeal and uphold the recommendations of the Planning Commission excluding the
festive decoration for the tent.
That the screening material shall be installed on the south and east sides of the "extreme
skateboard park" to block the view from the adjacent public areas. The installation shall be
complete within 60 days of CUP approval and to the satisfaction of the Community
Development Director. The screening to be as high as the highest skate ramp and left to the
discretion of staff.
That the applicant shall submit a plan addressing cleaning, treatment and maintaining the
dome in an aesthetically acceptable manner. The plan shall be submitted within 30 days of
CUP approval, for review and approval by the Community Development Director and Fire
Chief. The plan shall include an implementation schedule not to exceed 30 days from plan
approval.
That the roller hockey facility remain open until 10 p.m. until August 18, 1997 because of
League play.
14.2 LANDSCAPE MAINTENANCE DISTRICT 82-1, ANNUAL LEVY
AND COLLECTION OF ASSESSMENTS, CITY OF
ORANGE:Time set for a public hearing on the annual levy of assessments to fund the costs and
expenses for the maintenance of the improvements in Landscape Maintenance District No. 82-1,
which is located westerly of Meats Avenue in the vicinity ofMarywood and Shadowridge
Streets, Tract 10486. (L1200.
0 LMA-82-1)Fiscal Impact: The total assessment for 1997-98 is $9,660.00. All
district costs are funded from the assessments and there is no impact on the General Fund.
Assessments are reduced
30% from Fiscal Year 1996-97.Mayor Coontz announced this is the time and place fixed for
the public hearing relating to the levy of the annual assessment for costs
of maintenance and improvements for Landscape Maintenance
Districts No. 82-1, 86-2 and 92-1.The City Clerk announced the notice has been given
in the manner and form as required by law and a Certificate of Compliance is
on file and open for public
inspection for Landscape Maintenance Districts 82-1, 86-2 and 94-1.The Director
of Public Works reported that Landscape Maintenance Districts 82-1,86-2, and 94-1
are pursuant to the 1972 Landscaping and Lighting Act. All districts are developer districts which means
100% petition at the time of formation, and exempt from the election provisions
of Proposition 218, unless increases in assessments are proposed. It is proposed that the assessments
be reduced in the three districts; reductions which range from 20% - 30%.
All districts involve the maintenance of landscaping and irrigation. There are
no major
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
Sycamore Crossing District 94-1 has three parcels that have not previously had an
assessment.One parcel is the senior housing project on the south side ofthe channel, which was proposed
to be assessed with an equivalent of 12 units, if an assessment were levied. With the passage
of Proposition 218, the City is required to levy an assessment on any parcel within the district
that benefits from the district. The parcel does have benefit of the use, and an assessment of $479.
40 is proposed. Under the allowance in the original formation report, the assessment could be
as high as $3,500 per year. The benefit is significantly less than was originally contemplated in
the formation report with the senior housing use. There are two publicly owned parcels within
the boundaries of the District, a well site and recreation site, which are proposed for $94 and $
47 assessments, which is less than residential unit assessments because of the limited
benefit.There is public testimony on the senior housing project of District 94-1 (
Sycamore Crossing).For the record, the assessed valuation for District 94-1 is approximately $38 million.
In order for a majority protest to exist, there must be protest of record at the close ofthe hearing
in excess of 50%. The senior housing project has an assessed value of approximately $
6 million. There would not be a majority protest, even with a protest from the
Sycamore Crossing District.Mayor Coontz asked to hear from those persons who wish to speak in opposition to
the extent of works of maintenance or the method
of assessment spread.Speaking on Landscape Maintenance District No. 94-1: Scott
Choppin, Project Manager for Kaufman and Broad, 2922 Claremore, Los Alamitos, expressed
concern with the long-term project assessment costs of the senior housing project in District
94-1. The acreage of the community is 1.44 acres. Mr. Choppin indicated he
is protesting the assessment and formally requesting that the annexation process
be started for the following reasons:It is agreed the $476 assessment is nominal, but the larger concern
is that this sets a precedent for this District in that future assessments could be charged against
the property that are not a nominal amount. The project has
no protection against future assessment increases.Because the project is an affordable housing community, it
would not otherwise be able to bear the burden of a higher assessment amount, such
as a senior market rate community.The Director of Public Works stated there is no basis for
the annexation unless there is no benefit. The property is accessed off of a private street
that serves the District and immediately abuts the landscaping. It is felt the assessment spread is
fair and reasonable. The property does have limited benefit and does not benefit to the level of other
properties with its current use. In order to have a de-annexation, it would have to be established that
there is no benefit. It is staffs belief it cannot be established, based on the evidence that
exists at the present time, the original reports prepared, and the findings that were made by
the City Council when District 94-1 was formed. The developer took on the project
knowing it was within the assessment district, and information was available that there was
a potential for assessment.
Since that time, Proposition 218 came into
existence.MAYOR
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
RESOLUTION NO. 8796
A Resolution of the City Council of the City of Orange confirming the Diagram and Assessment
and providing for the levy of the annual assessment for Special Maintenance District 82-
1.MOTION - Murphy
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Resolution No. 8796 as introduced, be adopted and same was passed and adopted by the preceding
vote.14.3
LANDSCAPE MAINTENANCE DISTRICT NO. 86-2, ANNUAL LEVY AND COLLECTION
OF ASSESSMENTS, CITY OF ORANGE:Time
set for a public hearing on the annual levy of assessments to fund costs and expenses for the
maintenance of the improvements in Landscape Maintenance District No. 86-2 within the
Upper Peters Canyon Specific Plan Area (Santiago Hills). (L1200.0 LMA-
86-2)Fiscal Impact: The total assessment for 1997-98 is $317,154.00. All district
costs are funded from the assessment and there is no impact on the General Fund. Assessments
are reduced 25%from
Fiscal Year 1996-97.NOTE: Refer to Item No.
14.2 for
discussion.RESOLUTION NO. 8797 A Resolution of the City Council of the City of Orange confirming
the Diagram and Assessment and providing for the levy ofthe Annual Assessment for
Special Maintenance District
86-2.MOTION - Murphy
SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez Moved that Resolution No. 8797 as introduced, be adopted and same was passed and
adopted by the
precedingvote.14.4 LANDSCAPE MAINTENANCE DISTRICT NO. 94-1,
ANNUAL LEVY AND COLLECTION OF ASSESSMENTS,
CITY OF ORANGE:Time set for a public hearing on the annual levy of assessments to fund the
costs and expenses for the maintenance of the improvements in Landscape Maintenance District No.
94-1 in the Sycamore Crossing
Tract. (L1200.
CITY COUNCIL MINUTES July 8, 1997
14. PUBLIC HEARINGS (Continued)
Fiscal Impact: The total assessment for 1997-98 is $38,390.00. All district costs are
funded from the assessments and there is no impact on the General Fund. Assessments are
reduced 20% from Fiscal Year
1996-97.NOTE: Refer to Item No. 14.2
for discussion.RESOLUTION
NO. 8798 A Resolution of the City Council of the City of Orange confirming the Diagram
and Assessment and providing for the levy of the annual assessment for Special Maintenance
District 94-1.
MOTION - Murphy SECOND -
Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved that Resolution No. 8798 as introduced, be adopted and same was passed and adopted by
the preceding vote.
15. PLANNING AND ENVIRONMENT - None 16.
ORAL PRESENTATIONS Carole
Walters, 534 N. Shaffer, requested to speak with the City Manager; indicating people have
the right to speak and should not be hurt.RECESS
The
City Council recessed at 10:30 p.m. to Closed Session for the following purposes:a.
Conference with real property negotiators pursuant to Government Code Section 54956.8 Property:
SW corner of Chapman Avenue and The City Drive, Assessor's Parcel No. 231-061-
37 & 38
Negotiating Party: Met Life
Under Negotiation: Price of property
Property: SE corner of Chapman Avenue and The City Drive, Assessor's Parcel No. 231-
062-
05 08
Negotiating Party:
Under Negotiation:Regent of the University
of California Price
of property Property: 3737 W.
Chapman Avenue Negotiating Party: Ayres Holdings
Limited Partnership Under Negotiation: Price
of property
CITY COUNCIL MINUTES July 8, 1997
RECESS (Continued)
b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6
Agency Negotiator: Personnel Director Steven Pham
Employee Organization: Maintenance and Operations
c. Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: one
potential case. Orange Resource Recovery Systems investigation.
d. To consider and take possible action upon such other matters as are orally announced by the
City Attorney, City Manager, or City Council prior to such recess unless the motion to recess
indicates any ofthe matters will not be considered in Closed Session.
The City Council recessed from Closed Session at 11 :20 p.m.
17. ADJOURNMENT
MOTION - Mayor Coontz SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez The City Council
adjourned at 11 :20 p.m.Cu-M~~dG~
k~CASSANDRA ATHCART,
CMC CITY CLERK
J:-o _~,/
JSfANNE
COONTZ :'
MAYOR
i PAGE
27