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10-25-1994 Council MinutesI CITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA OCTOBER 25,1994 The City Council of the City of Orange, California convened on October 25, 1994 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 1.2 ROLL CALL PRESENT - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer 1.3 APPROVAL OF MINUTES Regular Meeting September 27, 1994 - Corrections to Minutes.MOTION - Spurgeon SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved.Adjourned Regular Meeting October 11, 1994.MOTION - Murphy SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved.Regular Meeting October 11, 1994. MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved. PAGE 1 CITY COUNCIL MINUTES OCTOBER 25, 1994 1.3 APPROVAL OF MINUTES (Continued) Adjourned Regular Meeting October 18, 1994. MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved.1.4 PRESENTATIONS/ANNOUNCEMENTS/ INTRODUCTIONSSupervisor Gaddi Vasquez was unable to attend the Council meeting to present two checks in the amount of $100,000.00 and $5,000.00 in Urban Park Grant money to me City of Orange, The presentation will be rescheduled.1.5 PROCLAMATIONS Proclamation honoring the Miss Orange Pageant Association was presented to Phil Giraldin, Executive Director and Dick Ginnaty, Past Executive Director.2.CONSENT CALENDAR TAPE 183 2.1 Declaration of City Clerk Marilyn 1. Jensen declaring posting of City Council agenda of a regular meeting of October 25, 1994, at Orange Civic Center, Main Library, Police facility at 1107 North Batavia and me 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. 2.3 Request Council approvean Exclusive Authorization and Right-to-Sell Agreement and related papers for a 6 month period with Sam Calabrese, Broker of Orange Realty Associates, for the sale of the house and property located at 488 South Glassell.A2100.0. Agr.2308)FISCAL IMP ACT: All sale proceeds to be deposited into Account No. 262-5011-291100- 4012. ACTION: Authorized Mayor and City Clerk to execute agreement, as well as escrow papers and any deeds necessary to convey title upon sale on behalf of City. Page 2 CITY COUNCIL MINUTES OCTOBER 25, 1994 2. CONSENT CALENDAR (Continued) 2.4 Request Council approve agreement with Barbara Durmas to connect 16661 and 16665 Buena Vista to City of Orange Sewer. (A2100.0,Agr,2309) FISCAL IMPACT: None. ACTION: Authorized Mayor and City Clerk to execute agreement on behalf of the City. 2.5 Request for the installation ofa 'I_Way' STOP control device at the intersection of Duo ton Ave, and Hartman St, (S4000.S.3.3) FISCAL IMPACT: None. ACTION: Denied, 2,6 Request to remove the west side of the 400 block ofN. Orange St. and the north side of the 100 block of E. Sycamore Ave. from the Neighborhood Parking Permit Program -Area ' A'. (S4000.S.3.1.2)FISCAL IMPACT: None.ACTION: Denied,2. 7 Request to remove on-street parking from the east side of Santa Ana Canyon Rd. (also known as Santiago Blvd.), from Lincoln Ave./Nohl Ranch Rd. to the north city limits. S4000,S.3. 1. 1) FISCAL IMP ACT: Sufficient funds are available in #250 Traffic Safety funds. ACTION: Approved REMOVED AND HEARD SEPARATELY) 2,8 Request for the installation of a '3-Way' STOP control device at the intersection ofLoma St. and Serrano Ave. (S4000,S.3. 3)FISCAL IMPACT: Sufficient funds are available in #250 Traffic Safety funds.The City Traffic Engineer eXplained the connection for Lama Street is occurring quicker than anticipated. The traffic signal for Loma and Serrano has been funded in the CIP budget. The 3-Way Stop Control device request will be temporary until the signals can be installed early next year,MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Page 3 CITY COUNCIL MINUTES OCTOBER 25, 1994 2. CONSENT CALENDAR (Continued) ACTION: Approved 2.9 Request to approve a City-County Cooperative Agreement No. D94-161 to construct Olive Heights sewer on Buena Vista, Magnolia, and Bixby Streets ( County area),A2100,O. Agr,2310)FISCAL IMP ACT: None, This project is fully funded by the County of Orange,ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.REMOVED ANDHEARD SEP ARATEL Y)2.10 Request Council adopt an amendment to the City's Statement of Investment Policy to expand the Investment Advisory Committee to include three outside professionals with investment expertise. (ORI800.0. 27.13)FISCAL IMP ACT: None.The Assistant City Manager reviewed the policy and indicated the City Manager will appoint the members to the committee consulting with Council before the appointments are made. It was noted a person could be an employee of another public entity outside the City and be considered for membership on the Investment Advisory Committee.MOTION - Spurgeon SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved. 2.11 CLAIMS FOR DAMAGES FROM: (C3200.0)a. Jason Turgasen b. Doris M. Dragan FISCAL IMP ACT: None.ACTION: Denied claims and referred to City Attorney and Adjuster.2.12 Request Council authorize receipt of patron donations in the amount of $1,484.15 to the Magazine "Angel" Program through the Friends of the Orange Public Library to purchase magazines for the Library. (C2500.1)FISCAL IMPACT: Funds should be received in Revenue Account 200-292100-9988 and Expenditure Account 200- 2001-443101- 9988.ACTION: CITY COUNCIL MINUTES OCTOBER 25, 1994 2. CONSENT CALENDAR (Continued) 2,13 Request Council approve an Amended Water Supply and Service Agreement and Sewer and Reclaimed Water Supply and Service Agreement with the Irvine Ranch Water District. (A2100.0,Agr.0671.1) FISCAL IMP ACT: None. ACTION: Authorized Mayor and City Clerk to execute on behalf of the City. REMOVED AND HEARD SEP ARATEL Y) 2,14 Request Council approve the Medical Service Agreement with Primary Care Doctors of California, dba Convenient Medical Care. (A21 00. O,Agr,2311) FISCAL IMPACT: Sufficient funds in the amount of$15,OOO.00 have been budgeted in Account No, 100- 1401-426400,The Acting Personnel Director was asked to explain why the orthopedic portion of the contract was excluded, and if there was a substitute. It was explained that this contract is to deal with the day-to-day medical problems that occur with the employees which, under the law, need to be addressed immediately. There is another provider that handles the other medical problems.MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Authorized Mayor and City Clerk to execute agreement on behalf of the City. 2.15 Request Council approve Joint Venture Agreement and project with the City of Villa Park for rehabilitating Taft Avenue from Sycamore Street to Loma Street. A2100.0.Agr.2312) FISCAL IMPACT: Funds in the amount of$21,402.00 have been appropriated in Account No. 262-5021-483300-3112 ( Arterial Street Maintenance).ACTION: Authorized Mayor and City Clerk to execute agreement on behalf oftl1e City,REMOVED AND HEARD SEPARATELY)2.16 Request Council adopt the Reserve Policy and AllocatedReserves of $ 15.3 million. C2500.1.l)FISCAL IMP ACT: None.Councilwoman Coontz indicated all her questions had been CITY COUNCIL MINUTES OCTOBER 25, 1994 2. CONSENT CALENDAR (Continued) MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Approved,REMOVED AND HEARD SEP ARATEL Y)2.17 Request from Orangehill Homeowners Association to reconsider the installation of a 3-way stop sign at the intersection of Calle Baja and Calle Grande. (S4000.S.3.3)FISCAL IMPACT: None.The City Traffic Engineer commented there seems to be a difference of opinion relative to who represents the residents in the homeowners association and who was in favor of the original request which was approved by the Council. However, Council's recommendation does not become legally effective until the control device is installed.This control device will not be installed until the subject request is considered by the Traffic Commission for resolution and return to Council.MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer ACTION: Moved to direct this request to the City Traffic Commission and the Traffic Engineer.2.18 A report from Jim Evans, Assistant City Manager and David De Berry, Assistant City Attorney on the transfer of the cable television franchise Community Cablevision to Cox Cable Communications, Inc. (FI100.0)FISCAL IMPACT: None. If approved, adopt: RESOLUTION NO. 8396 A Resolution of the City Council of the City of Orange approving a transfer of the controlling interest in the cable franchise granted to Community Cablevision Company to Cox Cable Communications, Inc.ACTION: That Resolution No. 8396 as introduced be adopted and same was passed and adopted by the preceding vote.Page 6 CITY COUNCIL MINUTES OCTOBER 25, 1994 2. CONSENT CALENDAR (Continued) MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Items 2.8, 2, 10, 2.14, 2.16 and 2.17 were removed andheard separately; all other items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR BEYER - None 4.REPORTS FROM COUNCILMEMBERS TAPE 505 Mayor pro tem Barrera reported he and Councilman Murphy attended the League of California Cities Annual Conference in Long Beach. Councilman Murphy indicated they attended the business section and commented it was important the City of Orange's interest are represented.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS-TAPE 549 5.1 TSIP Fee Appeal Hearing - Self-Storage Facility, Northwest Corner McPherson Road at Chapman (A2500. 0 TSIP Area C)The Assistant City Attorney reported the appeal is concerning the amount offees to be paid by the appellant's proposed construction of a storage facility. This site is located in Area C which is the area east ofthe 55 Freeway. The fees are used to fund various arterial improvements in the City and are generally made in the area where the fees are collected. The fees are based on a square footage basis depending on the type of development. Area C has two rates; residential and non-residential which is $ 2.75 per square foot. As applied to the appellant's proposed 90,000 sq.ft. storage facility, it would result in a TSlP fee of $248,463.00.The appellant felt this fee was excessive in relation to the traffic impacts generated from the self-storage facility. The appellant referred to a United States Supreme Court Case which the appellant contended required the fee be directly proportional to the project's traffic impacts.The Appeal Board determined the current rate structure in Area C did not contemplate an industrial use such as the self-storage facility. During the hearing, the appellant stated from a traffic impact standpoint, the self-storage facility was closely related to an industrial use and the Appeal Board agreed. The Appeal Board determined that the appellant would be permitted to pay an interim TSlP fee based on the industrial rate in Area B, the lowest non-residential rate in the City, in the amount of$166,500. Page 7 CITY COUNCIL MINUTES OCTOBER 25, 1994 5. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS (Continued) The Appeal Board directed the staff to conduct a new study in Area C to determine what the rate in Area C should be for uses that are similar to the appellant. In the meantime the appellant could go forward with ilie project if they paid the industrial fee. At the conclusion of the study, staff would propose new rates for Area C and possibly for oilier areas in the City. If adopted by Council whatever rate would apply to the appellant's project would become the final TSIP fee. The appellant would either be entitled to a refund or would pay ilie incremental difference. Regarding the legal issues, the TSIP requires the fee to be paid prior to the issuance of a Conditional Use Permit or Building Permit, State law requires the cities development fees bear a reasonable relationship to the project's impacts. Since this type of development was not contemplated for Area C the City cannot determine whether a reasonable relationship exists until a new study is completed, The purpose ofilie Appeal Board in implementing the interim fee was to allow the appellant to commence ilie project pending the outcome of the new study and new fees, The Assistant City Attorney commented there is no authority under the TSIP ordinance for the Council to establish a separate rate on a case by case basis, However, the ordinance could be amended if Council wished to do so, but that action could not be taken at this time due to notice requirements. If Council imposes the fee without a study, the City does not have sufficient data to establish a reasonable relationship and the fee would be highly susceptible to challenge. The City Traffic Engineer was asked when the subject study would be completed and it was indicated mid-December. Due to notice requirements, the earliest this action could be brought back to the Council would be mid-December. Staff recommends Council adopt the TSIP Appeal Board's findings with the change that the appellant would retain the right to protest the entire fee.The Assistant City Attorney commented due to Brown Act requirements and notification of the public hearing it would have to be scheduled for the first meeting in January, 1995.Bruce Jordan, 34700 Pacific Coast Highway, Capistrano Beach, architect for the project,speaking on behalf of Hunt Enterprises and The Kerbis Company, requested Council to consider that the fees need to be commensurate with the actual impacts being caused. Mr, Jordan commented self-storage is the lowest generator of any commercial or industrial traffic land use category as shown in the Transportation Engineer's Society Manual. Their project is being overburdened by the $248,000 fee and it represents almost one-third of their hard construction dollars. Staffhas agreed the residential land use category should be assessed at $418.00 per dwelling unit. Mr, Jordan felt their project was not an industrial category. Their equivalent amount of traffic is 24.7 single family homes which calculates out to a fee of$1O,324.00.Another problem is that there is no cap to the fee.Phil Kerbis, 18851 Via Mecina, Irvine, commented between the city's fees and the traffic fees there is $538,000 in fees on a project that costs $1.5 million. This is a 33% tax. Mr. Kerbis indicated he would put up an amount of the $20,000 and negotiate anything above that. However anything much above that would fall out of this Supreme Court ruling which says " CITY COUNCIL MINUTES OCTOBER 25, 1994 5. REPORTS FROM BOARDS, COMMITIEES AND COMMISSIONS (Continued) Council discussion ensued relative to the study including why the City began TSIP fees and the necessity for having some type offee to meet requirements of Measure M for larger funding. The City Traffic Engineer recommended a study session be scheduled before a public hearing because it is an amendment to the ordinance it will be advertised extensively. MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to approve the suggested interim TSIP fee pending the results of the new TSIP study with a continued opportunity for the applicant to appeal the results, and the final results of the TSIP study to be brought before the Council within the month ofJanuary, 1995.TAPE 1829 5.2 Adjustment of the terms of the members of the Orange Public Library Board of Trustees to conform with the Educational Code as follows: (C2500.I.l)Mara Brandman, term to expire 6/30/96 Carolyn Cavecche, term to expire 6/30/96 George Gorham, term to expire 6/30/97 A1etha Clark, term to expire 6/30/95 Joseph Baker, term to expire 6/30/97 MOTION - Spurgeon SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to table this item to December 13, 1994 for discussions with the City Manager and the Library Director on certain matters.REDEVELOPMENT AGENCY ITEM ( See Redevelopment Agency Agenda, Page 1)MOTION SECOND AYES ABSENT Murphy Coontz Spurgeon, Barrera, Coontz, Murphy Mayor Beyer Moved to convene the Orange Redevelopment Agency meeting to hear the award and recognition of the "Slice of Life in Orange" Community Photo Contest winners. Page 9 CITY COUNCIL MINUTES OCTOBER 25, 1994 5. REPORTS FROM BOARDS, COMMISSIONS AND COMMITTEES (Continued) MOTION SECOND AYES ABSENT Murphy Barrera Spurgeon, Barrera, Coontz, Murphy Mayor Beyer Moved to reconvene to the City Council Agenda.TAPE 1863 5. 3 Report from the Community Video Advisory Board concerning the community needs assessment regarding Cablevision of Orange. (ORI800.0.28)Pat Buttress, Southern California Eidson Company, 531 E. Chapman, Orange, President of the Community Video Advisory Board, reported the Board assessed Cablevision's past performance and its ability to meet the future needs of the City, A survey was conducted with a total of211 responses from the community. A frequent complaint was many unwanted channels were packaged into tiers and ideally subscribers would like more a la carte channels. It was recommended Council write a letter to representatives in Washington D.C. stating that they did not appreciate the fact that they are forced to have certain channels, but would rather have a choice of channels. MOTION - Murphy SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to receive and file,6.ADMINISTRATIVE REPORTS TAPE 2645 6.1 Consideration of the continued operation ofthe Orange Certified Farmers Market at its present location until the end of April, 1995, subject to Staff conditions. (R1200.0)The Director of Community Services reported the market has operated for a test period of three months in the public parking lot west of City Hall. Communication with Farmers Market representatives, people downtown and the Official City Old Towne Steering Committee has indicated it would be better to relocate the operation to the Lemon Street parking lot, This will allow a temporary extension on the present location while preparations are being made for the move.Don Ebrite, 18131 Lincoln St., Villa Park, local producer of avocados and honey requested the following change to the agreement between the Farmers Market and the City: Page 2, add condition 1, sub a; The trial period for this market at the current site shall be extended only to the last Saturday, February, 1995, four months, thereafter, it shall be expected to move to the Lemon Street Lot or another mutually acceptable site that will allow its expansion to better serve Orange Page 10 CITY COUNCIL MINUTES OCTOBER 25, 1994 6. ADMINISTRATIVE REPORTS (Continued) citizens. Amend and add conditions, Item NO.7 sub a, The certified Farmer's Market Manager shall be required to allow at least three competing sellers of any single product in order to ensure competitive pricing for the direct benefit of Orange citizens. Mr. Ebrite felt if there was no competition between vendors there is no consumer protection in terms of pricing, Council recognized that the site was limited and failed to allow all the people that wanted to, to participate. Decisions on who is allowed to participate is not within the Council's purview, The Farmers Market management is the authority. Mary Lou Lorinzini, 2058 Valley Rd., Costa Mesa, speaking on behalf of the Farm Bureau and Market Manager for the Farmers Market in Orange, indicated they are in support of the continued operation of the market. However, they are not present to review or discuss the bylaws of the Farmers Market. That is between the Farm Bureau, farmers and customers. Ms, Lorinzini was asked by Council where the information originated that Councilor certain members of Council were not in favor of the move. Ms. Lorinzini remarked there were many rumors, however the new site would provide a bigger and better Farmers Market. Council discussion ensued that this move to Lemon Street be expedited so competition can prevail. MOTION - Spurgeon SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to expedite the move as soon as possible.6.2 Report on railroad crossings in the City ofOrange.(A2500.0) TAPE 3235 Councilwoman Coontz requested the report with the understanding that nothing was happening with Southern Pacific and so many people were complaining.The City Engineer reported the City has appropriated money and Southern Pacific has indicated they are willing to work with the City. An agreement is forthcoming and will be forwarded to Council for execution as soon as it arrives.MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to receive the report from the Interim Director of Public Works/City Engineer within 30 days if nothing happens.Page 11 CITY COUNCIL MINUTES OCTOBER 25, 1994 6. ADMINISTRATIVE REPORTS (Continued) 6.3 Report on Chapman University Law School. (SI200.0)TAPE 3316 The City Manager reported Chapman University is in the process of developing a law school and is actively pursuing a location. They have been pursued by a number of other communities with attractive offers. The City of Orange has not gone on record to support this, and based upon that fact, it was suggested the City go on record, not only to support the efforts of developing a law school, but developing the law school in the City of Orange. There will be an interim facility, however the City does not have a lot offacilities available for this. In the long term, the City would like to have Chapman University build their permanent law school facility in the City. Two weeks ago members of the community, Chapman University, OUSD and the City representatives met to discuss opportunities available with the OUSD property across from Chapman University. This issue will go to the school board at their next meeting. The crux of the situation is that OUSD has decided to surplus the property. The City of Orange is first in line as a public entity to acquire the property, and then work can begin with Chapman University to develop that site as a permanent law school. Carole Walters, 534 N. Shaffer, did not think the law school should be located at the old school district headquarters unless they have parking first. Parking from Chapman University is impacting the neighborhoods now. The building went on the historic list and lost money for the kids. Ms, Walters further asked when will Chapman University install the traffic signal at Walnut? Mrs. Walters requested a study session with the neighbors before Council votes. Mayor pro tem Barrera indicated the City Manager would handle the situation. Dennis Johnson, President of the Chamber of Commerce, 1104 E. Del Mar, commented the Board of Directors has taken a position to ask OUSD, Chapman University, and the City Council/Redevelopment Agency to work together with urgency on this issue and keep the law school located in the City of Orange. Bob Mickelson, 328 N. Glassell, spoke in favor of the law school being located in the City of Orange. Dick Cheshire, 333 N, Glassell, Vice-President of Chapman University, commented Chapman University would like to locate its law school in the City of Orange. The law school will open September, 1995 probably in a temporary site. They have looked for sites with the City' s assistance and there are not any sites that would accommodate their needs. To date, three cities have approached Chapman University, however the permanent site decision will be made by the Board of Trustees, There is no requirement by the Bar Association that the site be contiguous to Chapman University. Mr. Cheshire requested Council's support on parking and the OUSD site.Page CITY COUNCIL MINUTES OCTOBER 25, 1994 6. ADMINISTRATIVE REPORTS (Continued) MOTION - Coontz SECOND - Murphy Moved to receive and file,Councilwoman Coontz removed the previous motion with the consent of Councilman Murphy and gave the following motion:MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to accept the report, direct the City Manager and staff to work closely with Chapman University in facilitating the establishment ofa law school in the City of Orange.7. REPORTS FROM CITY MANAGER - None 8.LEGAL AFFAIRS TAPE 3982 8.1 RESOLUTION NO. 8395 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement. (A2100.0. Agr.2217)Bid No. 934-22, S. J. Burkhardt, Inc" Main Street and Town & Country Road MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer That Resolution No. 8395 as introduced be adopted and san1e was passed and adopted by the preceding vote.8.2 RESOLUTION NO. 8397 A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 94-7 adjusting a lot line of certain real property situated at 1281 and 1285 N. Morada Drive.C2500,M.16.1)Owners: Mid City Bank, and Steve andTeresa Reed Page 13 CITY COUNCIL MINUTES OCTOBER 25, 1994 8. LEGAL AFFAffiS (Continued) MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer That Resolution No, 8397 as introduced be adopted and same was passed and adopted by the preceding vote,8.3 RESOLUTION NO. 8398A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 934-28; M. A. Electric; design and construction of lighting improvements of city parking lot at Chapman Ave. and Santiago Creek.A2100.0.Agr. 2228)MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer That Resolution No, 8398 as introduced be adopted and same was passed and adopted by the preceding vote, to include the additional appropriation of$415.00 for lighting improvements to the City parking lot at Chapman Avenue and Santiago Creek..8.4 RESOLUTION NO. 8400 A Resolution ofthe City Council of the City of Orange expressing appreciation to Mayor Gene Beyer and commending him for fourteen years of dedicated and outstanding service to the City of Orange as a member of the City Council and as Mayor of the City. (C2500.D.l)MOTION - Coontz SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer That Resolution No. 8400 as introduced be adopted and same was passed and adopted by the preceding vote.9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY Recess City Council Meeting; reconvened Orange Redevelopment Agency.Page 14 CITY COUNCIL MINUTES OCTOBER 25, 1994 10. ORAL PRESENTATIONS FARMERS MARKET Gene Somers, 1539 E. Candlewood, brought to Council's attention that over the last few weeks there seemed to be a falloff on the number of stalls at the Farmers Market. Mr. Somers realized they were all jarnn1ed down at the Redevelopment parking lot with cars parked in the lot, The Farmers Market Director indicated the Methodist Church needed the six parking spaces. Mr. Somers did not understand why the church got the spaces when the original agreement indicated only one space would be needed for the Church. The Director of Community Development reported from the beginning it was understood the Church needed access to their kitchen and other facilities directly adjacent to the parking lot. The agreement stated six spaces would be made available when needed. Communication between the Church and Farmers Market did not work too well and it was modified so the six spaces would be available all the time. This is one of the reasons there is not enough space and they need to move. THEOLACY Bill Leming, 2720 E. Walnut, expressed comments regarding the Thea Lacy expansion and the following recommendations were given: 1) Notice to all residents in the area of public hearings on the expansion. 2) Use of Cablevis ion of Orange to inform residents, 3) Staff reports on a regular basis to the community as to what is happening. 4) All agreements should be made public before they are agreed to. Bob Bennyhoff, 10642 Morada Dr., commented there are negotiations going on now and if they can succeed and certain agreements are reached the amount of damage to the City would be minimized. 11. RECESS MOTION - Barrera SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer The City Council recessed at 6:57 p.m. for a 10 minute recess. The Closed Session was delayed until the end of the 7:00 p.m. Session,7:00 P.M. SESSION 12. INVOCATION Captain Antonio Horta, Salvation Army was not present, The Assistant City Manager gave the invocation.12. 1 PLEDGE OF ALLEGIANCE TO THE FLAG Page 15 CITY COUNCIL MINUTES OCTOBER 25, 1994 12.2 ANNOUNCEMENTS - None 12. 3 INTRODUCTIONS - None 12.4 PROCLAMATIONS - None 12.5 PRESENTATIONS Recognition was given to the following owners of the Tustin/Mayfair Shopping Centerfor their cooperation and outstanding contribution during the rehabilitation of the center and maintaining the economic viability in the Tustin Street Project Area: (R3500.0.4)Mr, RayVan Couvering Wanda Marta Ms. Marilyn Quist Mr. Glen Nelson Mr. & Mrs. Vernon L. Valentine Mr. & Mrs. Robert Robinson Mr. Bud Quist Mr. Steve Nelson Mr. David Valentine Fred R. Waugh 13.PUBLIC HEARINGS TAPE 5353 13.1 CABLE TELEVISION BASE RATES AND CHARGES, FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT, CITY OF ORANGE: (FllOO.O)The public hearing to consider the rates and/or charges whichexist and are proposed to be implemented by Cablevision of Orange for cable television Basic Service Tier and associated equipment has been continued from August 23, 1994 and September 27, 1994 to this time.THE PUBLIC HEARING REMAINS OPEN.MOTION SECOND AYES ABSENT Spurgeon Murphy Spurgeon, Barrera, Coontz, Murphy Mayor Beyer Moved that due to a delay in the supplying of requested information, the City is unable to render a determination concerning rate reductions in accordance with the Federal Communication Commission's Form 1200. Thus, Cablevision of Orange is directed to keep an accurate account of all amounts received for the basic service tier and associated equipment and on whose behalf such amounts were paid. Such records shall be kept in accordance with the rules and regulations of the Federal Communications Commission and the franchise agreement. Continue this item to no date certain,TAPE 5419 13. 2 CONDITIONAL USE PERMIT NO. 2075-94, VARIANCE NO. 1976-94,ADMINISTRATIVE ADJUSTMENT 94-07, ST. JOSEPH HOSPITAL: (C3300.0)Time set for a public hearing on petition by St. Joseph Hospital to consider Conditional Use Permit 2075-94 to allow the expansion of an existing hospital (St. Joseph), Variance No. 1976-94 Page 16 CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) to waive the landscape setback requirement along Pepper Street and Administrative Adjustment 94-07 to allow a 10% reduction of the landscape setback along La Veta Avenue, Subject property is located on the northeast corner of La Veta Avenue and Pepper Street.NOTE: Negative Declaration 1459 has been prepared to evaluate the environmental impacts of this project,MAYOR PRO TEM BARRERA OPENED THE PUBLIC HEARING.The Director of Community Development reported the 20,000 sq, ft. emergency room expansion will be used by St. Joseph Hospital and CHOC Hospital jointly. The parking lot located at the corner of La Veta and Pepper Streets will be improved along with the access to the facility. The future widening of La Veta has been accounted for in the design. There will changes made to the parking lot with the street expansion at whatever point in the future this may occur, Parking will still be within the code requirements. The only code deviation is the location of the ambulance entry adjacent to Pepper Street. Pepper Street operates almost as a private street given that the major users are St. Joseph and CHOC.All City departments have reviewed the application and have signed off. The Planning Commission recommended approval.THERE BEING NO FURTHER COMMENTS, MAYOR PRO TEM BARRERA CLOSED THE PUBLIC HEARING.MOTION- Murphy SECOND- Coontz A YES- Spurgeon, Barrera, Coontz, Murphy ABSENT- Mayor Beyer Moved to approve Negative Declaration 1459, finding no substantial evidence that the project will have a significant impact on the environment or wildlife resources.MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to Approve Conditional Use Permit 2075-94 as outlined in Planning Commission Resolution No. PC-32- 94.MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Page 17 CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) Moved to approve Variance No. 1976-94 as outlined in Planning Commission Resolution No. PC-33-94, MOTION - Murphy SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to approve Administrative Adjustment 94-07 as outlined in Planning Commission Resolution No. PC- 33-94, TAPE 5689 13.3 AMENDMENT NO.1 TO DEVELOPMENT AGREEMENT NO. 1-88, SERRANO HEIGHTS SPECIFIC PLAN SITE, CALIFORNIA QUARTET: (A2100.0. Agr.1416.1)Time set for a public hearing on petition by California Quartet to consider an amendment to Development Agreement No. 1-88 entered into by the City of Orange and California Quartet, a California Limited Partnership, as successor-in- interest to Woodcrest Development, Inc. This Amendment to the Development Agreement proposes to amend sections referencing the Duration of the Agreement, Beginning of Construction, Progress Reports, Reservations or Dedications of Land for Public Purposes and Construction of Serrano Avenue.The subject site commonly known as "Serrano Heights" is located on both sides of the planned extension of Serrano Avenue (which will connect those portions of Serrano Avenue in Orange,east ofLoma Street, and in Anaheim, south ofNohl Ranch Road).NOTE: Previously approved EIR 1305-91 addresses the environmental impacts of this project.MAYOR BARRERA OPENED THE PUBLIC HEARING.The Director of Community Development reported that in November, 1988 Council approved a 15 year Development Agreement with Woodcrest Development that established a schedule of dedication and construction for Serrano Avenue connecting the Anaheim and Orange communities along with development of a residential project in that area. The schedule established has been extended by the Peralta Hills litigation and Serrano Heights bankruptcy. The current owner, California Quartet, is requesting a two to three year extension on the time frames to allow the physical improvements as stated in the agreement be built in a timely manner. The Planning Commission recommended approval on the application.Frank Elfend, Elfend and Associates, 610 Newport Center Dr., Suite 1290, Newport Beach,spoke in favor of the request and praised staff for their efforts on this project.Bob Bennyhoff, 10642 Morada Dr., spoke CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) THERE BEING NO FURTHER SPEAKERS, MAYOR PRO TEM BARRERA CLOSED THE PUBLIC HEARING. Mayor pro tem Barrera remarked he thought it was commendable that the staff feels that the applicant's requested amendments are reasonable. For the record Councilwoman Coontz requested the following amendments be included in the minutes: 1) Since the key public financing tool (the Mello-Roos District) has already been created, the most expedient way to get Serrano Avenue constructed (in all likelihood) is through the proposed extension and amendment to the Agreement. 2) The project (Serrano Heights Specific Plan) for which the Agreement was created has not changed, thus amendments to the Agreement which remain consistent with the City's plans for the area meet the consistency and compatibility findings necessary to amend the subject Development Agreement. 3) As identified, there have been unforeseen legal and economic circumstances which the present, or past, property owner could not have foreseen or controlled,MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to acknowledge that the previously approved EIR 1305-91 addressed the environmental impacts of this project,MOTION - Coontz SECOND - Spurgeon AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved to approve Amendment No.1 to Development Agreement No. 1-88 as outlined in Planning Commission Resolution No. PC- 40-94.TAPE 6103 13. 4 APPEAL NO. 423, VARIANCE NO. 1974-94, DWIGHT CLARK: (A4000.0)Time set for a public hearing on petition by Dwight Clark to appeal the Planning Commission's denial on August 15, 1994 of Variance No. 1974-94. A request to waive the development standards for building setbacks, required number of on-site parking spaces and residential unit size, and to allow the use of an existing structure for a residence. The property is located at 421 S, Olive Street. NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15303(a). Page 19 CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) THE APPELLANT STATES THE FOLLOWING REASONS FOR THE APPEAL: Inasmuch as the staff informed us that there was no alternative to the variance that would fit this request, we filed this variance application. After denial, we appealed this variance to permit the City Council to consider the same reasons submitted to the Planning Commission. We submit that, if the Council concurs in this need for housing, conditions and findings can be imposed to ensure that this proposed apartment will provide decent, safe and sanitary rental housing, Indeed, we have always used a standard rental agreement that has enabled us to control the number of occupants. " MAYOR PRO TEM BARRERA OPENED THE PUBLIC HEARING The Director of Community Development reported the property is zoned R-4 and is 14,000 sq. ft.in size and is occupied by a seven unit apartment building. The garage structure has eight spaces within it and a room which is the question of the application. This garage structure was built in the late 60's as part of the office development which fronts on Glassell Street. It was later split away from the office use, the zoning was changed and the garage was used to satisfy the parking needs for a seven unit apartment building built in the late 70's. When the seven units were built,modification to the garage included 10 parking spaces and 2 open parking spaces, Following that,the end space was converted, or retained, as a room and further occupied as a residential unit.There are no building permits to verify this.The request would allow the residential dwelling unit to legally exist within the former garage or whatever portion of the building. The living unit would be 425 sq. ft. in size. To allow this to occur there are a number of variances required. The Zoning Code requires a minimum unit size of 650 sq. ft. The addition of this unit to the existing seven units would require 14 parking spaces.In the applicant's site plan there are 13 parking spaces provided. The garage structure is placed on a property line with no setback from the rear or side property lines. If approved the building code would require one hour fire walls to separate the residential structure from neighboring properties and the garage area. Also required would be a 30 inch high parapet added to the top of the structure to contain any fire.There are three spaces located at the east end of the driveway. One of those spaces if occupied by a vehicle, would block the access to the trash bin and another of them would be close to the front entry door of the proposed residential structure.The staff review committee recommended this proposal not be approved due to poor living environment and functional difficulties. In consideration of a variance, the Orange Municipal Code requires certain findings to be made to ensure that special privilege is not being granted and that special circumstances are not deprived subject property enjoyed by the properties in the same zone.The Planning Commission recommended denial of the project.Page CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) Speaking for the appellant, Furman Roberts, 2504 E. Paladin, Anaheim, Attorney for Mr. & Mrs. Dwight Clark, asked the question, "How do you feel about affordable housing provided by the owner at no cost to the City, but involving basically provisions that provide decent, safe and sanitary shelter?" Mr. Roberts gave a brief history of the property. The property owner has had a reputation of never having any overcrowding in any of these units with the type ofIease agreements that are used. Mr. Clark will comply with all conditions of the building. If it is sold there would be a recorded deed restriction with a 60 day written notice for the sale. Mr, Roberts was asked by Council his reasons to grant the variance. If a variance should be granted it would be subject to conditions to ensure that the adjustment would not constitute a special privilege because of the history of the City and of that particular area. Council discussion ensued relative to the City having difficulty dealing with what happens in the older sections of the City. If this is allowed it would set a precedent. Carole Walters, 534 N. Shaffer, spoke in favor of the appeal. THERE BEING NO FURTHER SPEAKERS, MAYOR PRO TEM BARRERA CLOSED THE PUBLIC HEARING, MOTION - Spurgeon SECOND - Coontz AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer Moved that this project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15303(a),MOTION - Spurgeon SECOND - Coontz AYES - Spurgeon, Coontz, Murphy NOES - Barrera ABSENT - Mayor Beyer Moved to deny Appeal No. 423.The following statements were given for the record:Councilman Murphy: "The affordable housing issue has been raised and is something a number of us have been closely involved with including the recently adopted Affordable Plan for the City. I certainly don't question the management ability of the Clarks, the property itself and how its been maintained and actually improved over time. But I, like a couple of the Planning Commissioners referenced in the minutes, have wrestled with finding a legal justification for the variance. The Page 21 CITY COUNCIL MINUTES OCTOBER 25, 1994 13. PUBLIC HEARINGS (Continued) specifics on that are very well defined. I really wrestled with it because I know that the intention of the owners and the intention of everyone involved was not to do something legally non- conforming, This was an acquired piece of property that had an existing use that assumptions would be on it and it would have been legal based on the initial blush. I just can't see the planning and land use types of rationale for findings to justifY the variance, and frankly I can't justifY them on the basis ofthe affordable housing issue despite the fact that it is something I feel very strongly about." Mayor pro tem Barrera: "I can see the Council leaning toward the legality of it and that's a vote right straight from your head, I'm going to vote from my heart on this here. I think it's shelter, so that's the reason I feel the way I do about it." Councilwoman Coontz: I want to say that I believe this Council does have a heart too, but we have to finally make a decision. Councilman Spurgeon, Councilman Murphy and I have been involved in supporting affordable housing. This decision involves very definite State law that we should be following in respect to the need for legally supportive reasons for voting or not voting for variances, 14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS RECESS MOTION SECOND AYES ABSENT Murphy Barrera Spurgeon, Barrera, Coontz, Murphy Mayor Beyer The City Council recessed at 8:25 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):National Advertising vs. City of Orange, United States District Court Case No. CV 85-4968 TJH(Kx).City of Orange vs. United Pacific Insurance Company, et al., Orange County Superior Court Case No. 72 42 36.City of Orange vs. Orange County Sheriff, Orange County Superior Court Case No, 72 97 18.b. Conference with Legal Counsel - anticipated litigation.Initiation oflitigation pursuant to Government Code Section 54956.9(c) (one potential case),Page 22 CITY COUNCIL MINUTES OCTOBER 25, 1994 RECESS (Continued) c. Conference with Real Property Negotiator regarding sale of City property pursuant to Government Code section 54956.8: Property: 488 South Glassell Street Negotiating party: Robert Stolhand, Real Property Representative Under Negotiation: Price and terms of payment 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 of the matters will not be considered in Closed Session. 16. ADJOURNMENT MOTION - Barrera SECOND - Murphy AYES - Spurgeon, Barrera, Coontz, Murphy ABSENT - Mayor Beyer The City Council adjourned at 8:50 p.m.7dAA/~ (I Oo~~.../MARILYN 1. NSEN, aM' c CITY CLERK GENEBEYER GENE BEYER MAYOR BY: G FRED L. BARRERA MAYOR PRO TEM Page 23