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08-08-1995 Council MinutesCITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA August 8, 1995 The City Council of the City of Orange, California convened on August 8, 1995 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 Given by Mayor pro tern Fred Barrera. 1.2 ROLL CALL PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 1.3 APPROVAL OF MINUTES Adjourned Regular Meeting July 18, 1995.MOTION - Barrera SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Regular Meeting July 25, 1995. MOTION - Barrera SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz gave the following statement regarding Theo Lacy Jail:I am pleased to announce that the Orange County Board of Supervisors today ratified the Settlement Agreement and certified the Environmental Impact Report for the Theo Lacy expansion. This action moves the City forward financially and puts to rest years of financial court activity which can now be redirected for the good of the citizens of Orange.Supervisor Steiner, in his closing comments, complimented the City for its progressive approach to communication, compromise and commended City staff for its exemplary performance on reaching this agreement.PAGE 1 CITY COUNCIL MINUTES August 8, 1995 1.4 PRESENTATlONS/ANNOUNCEMENTSIINTRODUCTIONS (Continued) I want to thank Bob Bennyhoff for his positive comments which were made at the podium this morning. As we all know Bob has not been a proponent of the expansion but reached a point where he saw it was necessary for the protection of the community as well as an excellent financial benefit for the City. His public comments and support are appreciated. County staff was directed by the Board of Supervisors to begin slating firms for the design work in anticipation of funds possibly being available next year for expansion. In the meantime the City immediately begins receiving the financial compensation for a willingness to compromise." 1.5 PROCLAMATIONS Vanda Bresnin, representative of the Veterans Charities of Orange County accepted the proclamation honoring the 50th anniversary of World War II "Victory in the Pacific". 2.CONSENT CALENDAR TAPE 174 2.1 Declaration of Deputy City Clerk, Cassandra 1. Cathcart, declaring posting of City Council agenda of a regular meeting of August 8, 1995 at Orange Civic Center, Main Library, Police facility at 1107 North Batavia and the Eisenhower Park Bulletin Board; all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting. ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk. 2.2 Authorize Mayor and Director of Finance to draw warrants on City Treasurer in payment of demands. ACTION: Approved. REMOVED AND HEARD SEPARATELY) 2.3 Request Council approve audit contract services with KPMG Peat Marwick for the City and Redevelopment Agency in an amount not to exceed $39,700.00. (previously agendized contract for audit services with Ernst and Young was continued from 6-27, 7-11 and 7-25-95.) (A2100. 0.Agr.2423)FISCAL IMPACT: Funds are available in Account No. 100-1201- 426300 (Audit and Auditing Services).The Acting Finance Director reported she had reviewed the proposals which provided the same basic auditing services and options for additional services. The base fees quoted in the report are for the basic audit services.Councilman Slater asked if this was the fourth year KPMG Peat Marwick has been approved to perform the audit? The Acting Finance Director CITY COUNCIL MINUTES August 8, 1995 2. CONSENT CALENDAR (Continued) Councilman Slater commented Peat Marwick has done a good job, but after this year the City should move toward using a different firm next year in order to have another opinion in this matter. Mayor Coontz indicated this was Council's direction, but Council was unwilling to go for an audit that cost twice as much as this one. MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.2. 4 CLAIMS FORDAMAGES FROM: (C3200.0)a. Orange Park Acres Mutual Water Company b. Southern California Edison FISCAL IMPACT: None. ACTION: Denied claims and referred to City Attorney and Adjuster.2.5 Request Council award contract in the amount of$114,075. for the installation ofa traffic signal and highway safety lighting for LaVeta Ave./Yorba St.; and modification of the traffic signal at Tustin St./Fairhaven Ave., as a mitigation measure for the Fairhaven/SR-55 Fwy. bridge remodel and replacement. Bid #945-37. Low Bid - $114,075.00, Signal Maintenance, Inc., 2283 Via Burton St., Analteim, CA 92806 (A2100.0.Agr.2450)FISCAL IMP ACT: No negative impact. The project is being funded by the Orange County Transportation Authority, and will be processed through DPW Improvements Fund No. 550- 5032-483100-6094. The City has requested a 90% advance of the bid cost fromOCTA. ACTION: Authorized Mayor and City Clerk to execute on behalf of the City. REMOVED AND HEARD SEPARATELY) 2.6 Request Council approve the agreement with Orange Elderly Services, Inc. in the amount of$211,000.00. (A2100.0.Agr.0974.K) FISCAL IMP ACT: Sufficient funds are available in Account No.1 00- 7032-426700.Barbara DeNiro, 1118 E. Adams, asked that the fund be explained. PAGE3 I CITY COUNCIL MINUTES August 8, 1995 2. CONSENT CALENDAR (Continued) The Director of Community Services reported the account is in the Community Services budget and comes out of the General Fund. This agreement has been on-going for the last four years at no change in the amount. The $211,000.00 represents approximately 70% of the Orange Elderly Services, lnc.'s general operating fund.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.REMOVED AND HEARD SEP ARATEL Y)2.7 Request Council approve Letter of Understanding between the City of Orange and the Orange Fire Management Association. (C2500.J.4.3)Barbara DeNiro, 1118 E. Adams, asked if the Orange Fire Management Association was a union?Mayor Coontz indicated it was.MOTION - Mayor Coontz SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Mayor Coontz gave the following statement: "This item was pulled for discussion because forty days ago the Council, in public, accepted the Organization Transitional Plan concept. This concept was part of the discussions we had with our bargaining units when we requested that negotiations be postponed until the first of the year. It is extremely important that the City move ahead with an action plan to be completed in the next two weeks.I believe that as a Council we should direct the City Manager and his appropriate staff to work with our Acting Personnel Director and our Sr. Personnel Analyst to develop a comprehensive action plan to be agendized for the first meeting in September. This action plan, of course, should include input from division heads and line personnel in addition to the plans of determination of present service levels. "MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the request as outlined by Mayor Coontz and to be presented at the September 12, 1995 Council meeting.PAGE 4 CITY COUNCIL MINUTES August 8, 1995 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY) 2.8 Request Council consider a proposal from Robert B. Breskin to purchase the closed public restroom site on the east side of Orange Street, south of Chapman, demolish the building and construct an addition to his office building. He is proposing to purchase the 660 sq. foot site from the City for a net price of$6,300. (A2100.0.Agr.2451) FISCAL IMP ACT: All proceeds will be deposited into City's Parking Meter Fund. Barbara DeNiro, 1118 E. Adams, asked who would pay the demolition costs and when the building is increased, will it require additional parking? The Economic Development Director reported Mr. Breskin is responsible for all construction related activities which includes demolition costs. This is an existing business use so the project is exempt from additional parking requirements. MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Authorized Mayor and City Clerk to execute an Agreement for sale of Real Property and a Quitclaim Deed to Robert B. Breskin on behalf of the City.2.9 Request Council approve a Maintenance and Indemnity Agreement between St. Joseph Hospital, CHOCO Realty Corporation and the City of Orange which provides for the construction of a parking bay on Pepper Street partially in public right-of-way and partially on private property and indemnification of the City. The existing public sidewalk will be realigned around the parking bay on private property. (A2100.0.Agr.2452)FISCAL IMPACT: None ACTION: Authorized the Mayor and City Clerk to execute on behalf of the City.2. 10 Request Council approve an agreement with Serrano Water District for 1000 acre-feet per year of surplus water at a cost of$350 per acre foot. This agreement represents a savings of $80,000 per year over the cost of purchasing a similar amount of water from the Metropolitan Water District. (A2100.0.Agr.2453) FISCAL IMPACT: Annual savings in the cost of purchased water in the amount of approximately $80,000. ACTION: Authorized the Mayor and City Clerk to execute on behalf of the City. PAGE 5 CITY COUNCIL MINUTES August 8, 1995 2. CONSENT CALENDAR (Continued) 2.11 Request Council consider an amendment to an agreement for allocation of proceeds of sale of Allen-McColloch Pipeline which provides for the distribution of payments from the sale to the participating agencies over the next 22 years. The proposed amendment modifies the payment calculation and will provide slightly more annual revenue to the Water Fund than originally projected. (A2100.0.Agr.2281. 1)FISCAL IMP ACT: Small increase in revenue to Water Fund from the previously projected amount of about $365,000 annually.ACTION: Authorized the Mayor and City Clerk to execute on behalf of the City.2.12 Request Council consider a request from Orange Hill Restaurant for an encroachment permit to construct a monument sign in public right-of-way. ( C2500.M.14)FISCAL IMP ACT: No impact on budget. Permittee will post a bond to insure no costs to the City.ACTION: Authorized Mayor and City Clerk to execute encroachment permit and accept passbook security.REMOVED AND HEARD SEPARATELY)2.13 Request Council approve the Department of Public Works to invite bids for construction ofS.P. 3143 Wheelchair Access Ramps - in low to moderate income areas. The estimated cost for this project is $143,000 and will be funded through Community Development Block Grant. (S4000.S. 3.2)FISCAL IMP ACT: Sufficient funds have been appropriated and are available for this purpose under Account No. 310-6058- 475100-1328. (CDBG-ADA Improvements). No additional appropriation is requested.Barbara DeNiro, 1118 E. Adams, asked how are the low to moderate income areas determined?The Director of Public Works reported there are certain areas of the City that have been identified by Community Development where the median income is within the ranges defined by the Federal Government as being low to moderate income areas. These projects are located within the boundaries of those areas. This is also on a census track basis. MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: CITY COUNCIL MINUTES August 8, 1995 2. CONSENT CALENDAR (Continued) 2.14 RESOLUTION NO. 8507 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 945- 24;Street Maintenance - Various Locations 1994-95. (A2100.0.Agr. 2362)The City of Orange has a contract with R.1. Noble Company for Street Maintenance. The resurfacing and slurry seal work has been completed satisfactorily and it is necessary to accept the work and file a Notice of Completion. Original amount of Purchase Order was 816,000.00 of which $685,464.32 was spent.ACTION: Approved.2.15 Request Council approve the award of Phase II and Phase III of Proposal No. 945- 28 to Pacific Bell in the amount of $81,944.92 for Police Department's Local Area Network LAN) project. (A2100.0.Agr.2405.1, 2405.2)FISCAL IMP ACT: No impact on the General Fund. The Police Department LAN is one component of the Police Department's Three Year Laptop Computer Capital Improvement Project. The project is funded by revenues from Proposition 172 (Fund 120). This expenditure has been budgeted in the 1995-96 Budget in Account 120- 4011-491601- 2231 police Laptop Computers).ACTION: Approved.2.16 Request Council consider Legal Services Agreements with the law firms of Brown &Wood and Kane, Ballmer & Berkman to provide legal services in connection with the rehabilitation of Villa Santiago Apartments. (A2100.0.Agr.2454,2455)FISCAL IMP ACT: There will be no fiscal impact since compensation to both firms will be paid from bond funds.ACTION: Authorized the Mayor and City Clerk to execute the agreements on behalf of the City. MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Items 2.3,2.6,2.7,2.8 and 2.13 were removed and heard separately; all other items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR PAGE CITY COUNCIL MINUTES August 8, 1995 3.REPORTS FROM MAYOR COONTZ TAPE 556 3.1 Disbanding of ViII a Santiago Apartments Ad Hoc Committee. (OR1800.1.l2) Mayor Coontz thanked Councilmembers Murphy and Slater for an excellent job. They provided preliminary assistance during negotiations with the developer. MOTION SECOND AYES Murphy Mayor Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Approved.4. REPORTS FROM COUNCILMEMBERS TAPE 587 4.1 Report from Mayor Pro Tem Barrera regarding a grant from St. Joseph Health System Foundation to Orange Cares. (A2100.0.Agr.2059)Mayor pro tern Barrera acknowledged the grant for $35,000 to purchase two modular units to assist Orange Cares in their endeavors to feed the homeless.MOTION SECOND AYES Mayor Coontz Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to receive and file the report.4.2 Update from Councilman Slater regarding abandoned Grocery Carts. TAPE 664 OR1800.1.11)Councilman Slater reported the ad hoc committee met on July 12, 1995 with the Police Chief and the main topic of discussion was Assembly Bill 182 which would have tied the hand of the cities in terms of what could be done to address this problem. Governor Wilson recently vetoed this bill,which will give the cities more options. A meeting is schedule for September 6, 1995. In the meantime the Police Department is gathering information from other cities on their ideas.Councilman Slater announced if anyone has ideas on ways to fight this problem to contact him or Mayor pro tem Barrera. Also Code Enforcement Officers will now be available on Fridays and Saturdays beginning this weekend for enforcement.Mayor pro tern Barrera reported at the recent ad hoc committee meeting, an idea was presented of a lock on each grocery cart which would keep them from being taken off the store lot.Barbara DeNiro, 1118 E. Adams, referred to a newspaper article, Orange City News on August 3rd by Bob Hardin regarding the problems of stealing shopping carts.PAGE 8 CITY COUNCIL MINUTES August 8, 1995 4. REPORTS FROM COUNCILMEMBERS (Continued) MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept the report.OFF AGENDA ITEM - COUNCILMAN SLATER - PARKING PLAN Councilman Slater commented there are several projects commencing for downtown and there is no parking plan in place. There are several groups working on proposals. It was requested that the City Manager provide a timeline for a plan.The City Manager referred the question to the Community Development Services Manager who indicated there is no precise date, however staff has met and is discussing ideas such as forming a committee that will include merchants from downtown. Possibly a report could be forthcoming within 60-90 days. Mayor Coontz expressed her concern about the parking study. There needs to be a plan with a definite deadline. The Architectural Collaborative, Traffic Engineer and others are working on this plan. Mayor Coontz instructed the City Manager to assemble these entities and report back on the activities being pursued on this issue and set a date.The City Manager indicated he would ask the Community Development Services Manager to redefine and clarify the plans.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 6.ADMINISTRATIVE REPORTS TAPE 845 6.1 Presentation by Fire Chief Rudat concerning the creation of Paramedic Assessment Units and the establishment of an Emergency Transportation Program. (C2500.H)Mayor Coontz gave the following statement: "As Mayor and a Councilmember it is my duty and responsibility to consider every decision made by this Council to be of major significance. Issues that pertain to public safety and the economic growth oflocal business are a high priority for myself and the other Councilmembers. It is for this reason that when an issue as important as this presents itself, we expend an extraordinary amount of staff and Council time to consider all aspects of proposals, whether they are internal or external. Admittedly, it has been a confusing journey for those of us who are not in the emergency services provider business. It is partially that unfamiliarity that has created some of the misrepresentation of costs and services by some parties. To my knowledge each Councilmember has spent at least two hours with independent providers, Fire Department and City Management staff considering the options before us today.The Council held two study sessions; one devoted entirely to the private sector comments and proposals upon their request. PAGE 9 1---I CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (CoDtinued) I believe that many decisions we make are difficult; this one is no different. While I understand the request to assist private industry, I also feel that a first priority is to offer the citizens of this City the maximum security and safety services possible. This is part of our oath and understanding of our job. I believe this two year pilot project benefits the citizens and City budget. It actually will save General Fund money and ultimately benefit the private ambulance providers to a greater extent than they are enjoying in the current clinlate. This is a win/win proposal for the citizens, the City and private industry." The Fire Chief gave the presentation, reporting that public safety decisions must be directed at maximizing patient care and cost efficiency. Pre-hospital care is an integral part of the entire public safety challenge.The Emergency Medical Services proposal provides the following:Improves public safety through improvement of response time Less on scene time in critical emergencies thereby improving survival rates of patients Improves continuity of patient care and medical control over the patient, reducing the potential for liability claims It is self-supporting from fee for service revenues, not tax revenues and will relieve the General Fund of over $280,000 in current operating costs. These would be transferred to the transportation program budget, freeing up public dollars to be spent elsewhere.No increase in taxes and no increase in fees Does not create a standalone ambulance program requiring additional personnel. The Orange Fire Department is fully utilizing existing staff, taking on more duties, thereby stretching the tax dollar to offer the public more inlprovements in public safety.Maintains the $36.00 subscription fee. This proposal will include the cost of transportation for those who subscribe to the program.Provides the City an opportunity to capture pre-hospital care, reimbursement dollars that the City is entitled to from Medicare, MediCal and insurance company reimbursements.Battalion Chief Ray Montoya used slide exhibits to explain the creation of the Paramedic Assessment Units.ChiefRudat indicated the recommendation is for $30,000 from unappropriated reserves, Prop 172 funds, which are designated for public safety improvements. This is to purchase the basic equipment only.ChiefRudat presented the Emergency Transportation Proposal indicating it would utilize existing staffing. Task forces would be in three different locations in the City which would allow for improvement of response times because these would become Paramedic Assessment Units. CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (Continued) It is recommended that transportation be included as an additional benefit of the Paramedic Subscription Program, maintaining the subscription rate at $36.00. It would create an enterprise fund for this program, thereby keeping the revenues and expenses isolated. Also, it would entail reprinting the City's fee schedule to reflect all the fees associated with providing emergency transportation. To fund initial startup cost, $375,000 is requested from the General Fund Unappropriated Reserves for four transport units, capital equipment and other expenses. This is to be amortized with a replacement fund. Create a plan to pay back the General Fund from revenues for the fee service program. No tax moneys will be used to support this program because it will be paid back. An appropriation request of $267,201 will be to cover operating expenditures. This would be paid out of the operating revenues. Councilman Slater asked if the City decides at the end of two years this program is not working, how much in costs will the City lose? Fire ChiefRudat commented the revenues for the first year are underestimated at $675,000. Annualized they are $930,000; nearly a $300,000 cushion that is not shown. More than adequate revenues will be generated from the program. Regarding the purchase of the vehicles, there is a market for used vehicles should the program stop. Mayor Coontz instructed the Deputy City Clerk to read the following letters into the record: Carole Walters, 534 N. Shaffer, voicing concerns and questions Michael Alvarez, 360 S. Glassell, outlined three proposals for a public-private partnership The following representatives from ambulance companies spoke:Mike Dimas, Medix, 310 W. First St., Tustin, commented he had asked his attorney if the City could put him out of the pre-hospital care business, and received the comment that his attorney had completed his preliminary legal research and his opinion was that the proposed system cannot be implemented legally unless the Fire Department is a successful bidder after a competitive process. Mr. Dimas presented his proposal to the Orange Fire Department outlining alternatives to the plan. This proposal has the support of Chapman Hospitaland Y orba Park Medical Group and has been endorsed by the Orange Chamber of Commerce.Council asked the City Attorney for a legal opinion on the City's legality of expanding services to include transport without a request for proposal.The City Attorney commented he had discussed this issue with Mr. Dimas' attorney, who requested a delay in making a decision in order to submit a legal opinion for review. There has been other material submitted asking for a delay pending court cases that are in process.However, as in most cases, differing interpretations of statutes and case law come from reading these cases. The City of Orange's situation is distinguishable from many of the cases that are cited as authority in this matter. CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (Continued) It was indicated to Council there is a unique set offacts that are not applicable to the Health and Safety Code provisions regarding the competitive bidding process that has been cited. It is the City Attorney's understanding that the City has not contracted with any ambulance companies but has been operating on an informal basis. It is also his understanding that the City does not license ambulance companies. The County does that so the ambulance companies do not have to get a license in every separate city where they operate. This procedure seems to be done on a competitive basis because the Council in considering all of the proposals with respect to the quality of service, the rates to be charges, the level of service and the cost to the City. This public safety function is within the police powers ofa municipalityandCouncilultimatelyhastheresponsibilityfordeterminingservicelevelswithinCityboundaries. Blake MacPherson, representing CareLine California, 1890 S. Bentmore Lane, Anaheim outlined the following proposal: It will place more paramedics on the street without additional generalfundexpenditures. County approval can be achieved of paramedics if the Council approvesCareLine's proposal. CareLine must have City approval before they can apply for emergencyALScertificationwiththeCounty. The proposal stipulates a guarantee of $200, 000 each year forfirstresponderfees. It will allow the Orange Fire department assets to return to the City's fire suppression system more quickly and reduce wear and tear on City emergency vehicles. CareLine's paramedics practice pre-hospital emergency medicine seven days a week, 24 hours a day. Patients pay for the proposal that have health insurance carriers and medicare and medical, it is not subsidized by Orange taxpayers. A financial analysis was done by Arthur Anderson, CPA,which states after adjusting potential understatements it indicates the Fire Department will have a 558,000 shortfall over the first five years. This issue should be opened up to competitivebiddingasoutlinedintheOrangeMunicipalCode. Craig Cannizzo sent a letter to the CityAttorneytodaywhichreferredtoacasefromtheSanBernadinoCourtregardingadecisionthatwill come forward by the end of the month regarding this matter and suggested Council wait for that decision.The City Attorney responded that assuming the City wanted to contract with ambulance companies, the Orange Municipal Code does provide that the City will contract with licensees on a competitive basis for the provision of ambulance service. Assuming that the code provisions were applicable, and the City Attorney did not concede that it was, this procedure today is in compliance with that section because it is being done on a competitive basis. The two ambulance companies in the City are making presentations to the Council and having the Council decide regarding the quality of service and cost to the City.Mr. McPherson was asked by Council to explain an advertisement placed by CareLine in the newspaper indicating the City would be spending $916, 000.Mr. McPherson commented the figures were taken from the Fire Chiefs proposal. The actual cost of an ALS ambulance on an annual basis is approximately $400,000 per year. As a stand alone, the expenditure would be over $1 million.PAGE CITY COUNCIL MINUTES August 8, 1995 6.ADMINISTRATIVE REPORTS (Continued) Mayor Coontz recognized the following people who asked questions, but did not indicate opposition or approval: Barbara DeNiro, 1118 E. Adams John Volkhoff, 365 N. Cleveland (submitted flier received in the mail on this issue) In answer to a number of questions, the following answers were given by Fire ChiefRudat: 1) Approximately 10% of all calls to the Fire Department are for fires. 2) There is no difference in charges if one pays or does not pay the paramedic fee. 3) The Paramedic Subscription Fee of 36.00 means there is no direct fee for services provided. If you do not pay the $36.00, there is a basic life support charge of$175.00 or $250.00 for advance life support. These fees were established to offset some of the pre-hospital care dollars. 4) The County establishes a fee structure for private providers. It is not incumbent upon the City to go by those charges, but the City is recommending they be the same, not higher. 5) If there is a 911 request for emergency,the Fire Department responds the appropriate number of resources. Upon arrival, the firefighters will assess the situation and detern1ine if more resources are needed. 6) If all Fire Department units are busy, the Fire Department would enlist private enterprise ambulance companies. 7) The Fire Department will continue to provide business licensing, building, building code enforcement inspections and stop any non-emergency operations when an emergency exists. 8) The program is based on a 60% collection rate. 9) The Orange Fire Department responds to Kaiser Hospital and other hospitals outside the City. 10) No more firefighters will be hired, but they will be re deployed to a higher level of utility. 11) Most of the City's costs according to the Orange County Fire Chief's surveys, averages 5th or 6th in the County. 12) An annual report is recommended and also this is proposed as a two- year pilot program.The following people spoke in opposition:Charlie Sorensen, 1785 N. Batavia (work address)Dolores Otting, P. O. Box 9278, Newport Beach Steve Murphy, 1890 S. Betmore Lane, Analteim, employee of Care Line The following letters and faxed messages were received in opposition: Harvey Cohen, fax Victoria Settens, 6001 Elgin PI.Blaine and Laurie Molsberry, 3010 E. Palmyra Nancy C. Thomson, 729 E. Del Mar The following phone calls were received in opposition:Bert & Dee Lawrance, 337 N. Ash E. B. Stevens, 257 N. Main Dwight Clark David & Billie Slade, 1227 Fairway CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (Continued) Mr. Stal1ler, 1885 Lindenholz Gus & Eve Maple, 267 N.Hem1ock Greg Garvin (in favor of going out to bid) Mayor Coontz recognized the following speakers in favor: Angie Gray, Yorba Park Medical Group, 2501 E. Chapman Al Palladino, 761 Park Vine St. Max Schulman, 8571 Harrison Way, Buena Park Nick Waite, 4184 Sunset St. Karen Peters, 2525 N. Bourbon St. M- 2,Bob Bennyhoff, 10642 Morada Dr.The following phone calls were received in favor:Bob Evans Lisa Thomas, 1540 E. Candlewood Robert Boardman, representing numerous residents of Community Garden Towers Emergency Personnel, Community Garden Towers Lola Smith, 3919 Garden Gove Blvd. # 1412 Mike Hall, General Manager, Doubletree Hotel Cloer Family, 3545 Burly Linda Sawyer, 3617 E. Burly Rebuttal:Fire ChiefRudat responded there have been many revisions of how this program is to be implemented. The latest figures include $51,260 of general and administrative overhead charges which are included in the program. The multi-utility of the firefighter is what is being offered to bring forth this program; a multi-faceted individual capable of responding and providing care in a vast number of ways. This program is an investment that will give the City an opportunity to tap into a revenue source from insurance sources that will allow the City to develop cash flow that will relieve general fund tax dollars for Council to spend in other areas they deem appropriate.The focus is on public safety issue trying to bring forth the best available care and service to the community at no additional cost.ChiefRudat was asked by Council what the average response time was. ChiefRudat responded for the Advance Life Support service, the response time would be reduced from a 7 to 10 minute time down to 3.5 to 5 minute response time.THE CITY COUNCILRECESSED AT 6:45 P.M. AND RECONVENED AT 6: 55 P.M.The City Manager commented he has been in a community that has faced these same arguments about private industry being forgotten, and yet, as the first transport unit came on board, the second and third, for three communities that had a joint POWenl .-IIority, there appeared CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (Continued) marked example oflives being saved. The response time was in minutes that was actually saving people's lives. The Fire Department is being given two years to prove themselves. The City Manager recommended a sunset clause, and that the Fire Department work towards this sunset clause in an efficient manner. The City Manager gave his 100% support to the Fire Department. Councilman Slater commented he appreciated the proposal from the Fire Department, it was well put together. I appreciate it for two reasons. Primarily, I respect any department head's ability to be progressive and come up with new ideas. Change always needs to be made. To assume nothing can ever change means that things go bad and things are not cost efficient, so I want to congratulate the Chief for coming forward with the proposal. The second thing I like about the proposal is that it has elicited other proposals from the privates, meaning that they have looked at his proposal and they said yes, but maybe we can do it even better. That is the bottom line for the City of Orange. It is how can we do it the best. Also, the bottom line is cost which needs to be considered. I guess if we had to raise taxes enough and spend enough money, we can always make something the best. I guess we could pave the streets with gold if we had enough money and the City wanted to spend the money. I'm not convinced that to go with the Fire Department's proposal at this time is necessarily the right thing to do. I definitely do not feel it is the trend when things are moving toward privatization. In fact, an article I read in the Orange County Business Journal says that the trend has gone the opposite way. It says, "In 1980 just over one-third of municipalities contracted with private companies for ambulance service. By 1992 one-half of municipalities did." I'm not sure this is the right way to go at this time. The business community is certainly not behind this and I still have some legal questions as well. My suggestion would be to put out a request for proposals and allow the privates to have a fair shot at bidding what the Fire Department is proposing. It may turn out the Fire Department is the best way to go, but the bottom line is, we need to know what's the best for the City of Orange. Unless we put out the request for proposals to the other companies and give them fair consideration, we will never know what is the best.That is my proposal.Councilman Spurgeon commented he has been in the private sector for the past twenty years.When he first came on the Council, the first budget he participated in was 1991/92. The general budget was $53,000,000 with 746 employees. Recently this Council passed a balanced budget for 48,442,000 with 643 employees. Very few governments and districts in this County can measure up to that. Councilman Spurgeon did not accept the comment that big government is playing a role in this case. The sole issue is public safety.Mayor Coontz commented that having been involved with the budgets and decisions of the City regarding privatization vs. non-privatization, attorney's work has been brought in instead of privatizing as much as in the past, and has been successful. On the other hand, several departments have been dissolved and a number of services in the City have been privatized. The key to privatization is the quality of service. The Council is looking today at the quality of service. It is extremely important. PAGE CITY COUNCIL MINUTES 6. ADMINISTRATIVE REPORTS (Continued) August 8, 1995 Councilman Murphy commented his number one responsibility as a Councilman is public safetyforallcitizens. He is committed, through the election process, to the reduction of taxes and the most efficient delivery of government services. In this instance there are some uniquecircumstancesthataffordtheOrangeFireDepartmenttheabilitytodeliverserviceson a more efficient level than have been demonstrated in the private sector. The inlprovement to responsetimesissomethingnooneelsecanachieve. There never were any contracts in place and the Council was never approached. The proposal from the Fire Department was what incited the private companies to come forward with options to send moneys back to the general fund. Councilman Murphy outlined the following proposal: 1) Assuming the numbers are correct, and at the end of the first year there is a $27,000 surplus, this be translated into a reduction of paramedic fees. Roll the paramedic fee subscription service back to $33.00 from $36.00 so the taxpayer also participates in the savings of this program. 2) Expedite the process of preparing an RFP to privatize and put out for bid all non-emergency inner-facility transfer and emergency backup service. 3) Will the Fire Department guarantee the taxpayers investment in the transport through a reduction in this year's operational costs should this pilot fail and the City has to revert to some private service after the first year or two year period. Also request a first report either at the break-even portion of the proposal or at the end of the first year.Mayor pro tern Barrera commented he was very impressed with all the presentations, however Mayor pro tem Barrera supports the City of Orange Fire Department.Councilman Slater asked what percentage of potential subscribers now participate in the program? ChiefRudat answered there are approximately 9300 participants in the City. MOTION SECOND AYES NOES Mayor Coontz Barrera Murphy, Barrera, Mayor Coontz, Spurgeon Slater Moved to approve the proposal from the Fire department to enhance, better utilize and improve Emergency Medical Services by utilizing existing staffing to create two paramedic assessment units. Councilman Murphy amended the motion to include the following: 1) a reduction in the paramedic subscription rate as a portion of the net proceeds over costs (the idea was $3.00 per householdbasedonprojectionsthisyear); 2) include the RFP preparation for privatization of the non- emergency inner-facility emergency backup, etc. as to be determined based on policy with a report back to Council. 3) a department guarantee to cover costs of the initial investment and transport through reduction in this year's operational costs should the pilot program fail; and 4) a report at either the break-even point of revenues over cost or at the end of the first six months,which ever occurs first.These proposals will be addressed by the Fire Chief who will report to Council as they become available. CITY COUNCIL MINUTES August 8, 1995 6. ADMINISTRATIVE REPORTS (Continued) MOTION SECOND AYES NOES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon Slater Moved to approve the Fire Department's Emergency Transportation proposal as outlined in the staff report dated August 8, 1995.7.REPORTS FROM CITY MANAGER TAPE 5096 7.1 Discussion of pros and cons of privatization of asset management of City's investment portfolio, including costs for in-house manager and status of Investment Committee. (C2500. F)Mayor Coontz reported today the Investment Committee presented Council a draft report which needs to be addressed after Council confers with the Investment Committee. There are also legal questions to be addressed.MOTION SECOND AYES Murphy Mayor Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to continue this issue to September 12, 1995.8. LEGAL AFFAIRS - None 9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS Al Palladino, 761 Park Vine St., commented on a handbook for the disabled, handicapped and elderly entitled, "Surviving Earthquakes And Other Disasters As A Community," prepared by the City of Orange Fire Department. Mr. Palladino thanked the Fire ChiefRudat and the Fire Department. It was requested that more copies need to be distributed and requested Council's support.Delores Otting, Newport Beach, requested that the agenda packet be available to the public after 5:30 p.m.Max Schulman, 8571 Harrison Way, Buena Park, thanked Council for supporting the Fire Department's Emergency Transport Program. Larry Bonham, 332 S. Olive, complained about being harassed by the Police Department in the park.PAGE 17 CITY COUNCIL MINUTES August 8, 1995 10. ORAL PRESENTATIONS (Continued) Barbara DeNiro, 1118 E. Adams, commented that she felt put down because she talks on a fewdifferentitemsduringtheCouncilmeeting. 11. RECESS MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 7:40 p.m. to a Closed Session for the following purposes:a. Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(a):City of Orange VS. James Daum, et al., Orange County Superior Court Case No. 73-86-30.N.J.P. Enterprises, Inc. vs. Foothill/EasternTransportation Agency, et al., Orange County SuperiorCourtCaseNo. 743 955.b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:CityNegotiator: Acting Personnel Director.Employee Organization: All Employee Organizations (List Available in Personnel Office).c. To consider and take possible action upon such other matters as are orally announced by the CityAttorney, City Manager, or City Council prior to such recess unless the motion to recess indicatesanyofthematterswillnotbeconsideredinClosedSession.NOTE: There was no 7:00 P.M. Session PAGE 18 CITY COUNCIL MINUTES August 8, 1995 12. ADJOURNMENT MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council adjourned at 8:40 p.m. to an Adjourned Regular meeting, August 15, 1995 at 4:00 p.m. in the Weimer Room to discuss the Katella Avenue Corridor Rezoning Project. At 4:45 p.m. the Council will meet with the Planning Commission for a bus tour to observe business signs on Katella and Chapman Avenues.MARILYN J. JENSEN MARILYN J. JENSEN, CMC CITY CLERK j ti2/ f.. 1C(,/ .'-0117 JOANNE C. COONTZ i MAYOR U~~~- C' Ad CASSANDRAJ. CA CART, CMC DEPUTY CITY CLERK PAGE 19