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12-13-1994 Council MinutesCITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA DECEMBER 13,1994 The City Council of the City of Orange, California convened on December 13, 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 - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 3. REPORTS FROM THE MAYOR MOTION SECOND AYES Coontz Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to bring forward for discussion, Items 3.1, Reports from the Mayor, and Item 7.2 Report from the City Manager ontheOrangeCountyInvestmentPool.3.1 REPORT FROM MAYOR COONTZ (OCI300.0)THE EFFECT OF THE COUNTY' S INVESTMENT LOSSES ON THE CITY OF ORANGE.As you well know, Thursday, December 1st was a dark day for Orange County cities and public agencies when the problems withtheCounty's investment pool began to be revealed. However, it is important for you toknowthatthisCityisnotgoingtogobroke; nor is it going to file bankruptcy because of the County's actions.The 28 million dollars we placed in the County's investment pool amounts to about one-fifth of our total investment portfolio. The latest news from the County is that they are appealing to the Bankruptcy Court to beremovedfromChapter9tobeabletoselltheirremaininginvestmentportfolio. And while itisstillunclearjusthowmuchofthatmoneymaybeatrisk, the City does have the cash flownecessarytopayallofouremployeesandallofourbills.In an effort to protect our taxpayers and employees, our City staff is preparing several analyses to determine the impact theCounty's action will have on the City's operation, including a worst case scenario. Based on theinformationwehavetodate, our City services will continue to be provided.WHAT ARE THENEXT STEPS THE COUNCIL WILL TAKE?I. We already have in place a City Staff Investment Committee. I am requesting that the Council agendize the issue ofanadditionaloversightInvestmentAdvisoryCommittee, composed of PAGE 1 CITY COUNCIL MINUTES DECEMBER 13,1994 3.1 REPORTS FROM MAYOR COONTZ (Continued) volunteer professionals from the private sector, experienced and knowledgeable in the day to daycomplexitiesofmunicipalinvestments. This is a policy I have been advocating for some time.Our new City Treasurer, Helen Walker, is in full agreement with this proposal. 2. We need an Action Plan in place by January, 1995 in time for Council review of the mid-year 1994-95 budget. The goals of the Action Plan must include monetary solutions to theshortfallintheCounty's investment portfolio and solutions to the impacts of the losses on ourpresentbudget,along with priorities to provide continued City services. The City Manager will addressthisissuefurtherin his presentation.3. We will provide updates on the status of our investments with the County ateveryCouncilmeeting. This is, after all, your money, and you have every right to a full and timelydisclosureofouractionsandtheactionsat the County.The City of Orange has a total, safely-diversified investment portfolio of 97milliondollarsinotheraccounts, managed with continuous oversight and emphasis on safety, then liquidity, then yield - in that order. We will continue to carefully scrutinize these investments foradherenceto our guidelines.HOW DO WE PREVENT LOSSES OF THIS NATURE IN THE FUTURE?Both State Senator John Lewis and Assemblyman Curt Pringle (whom I haverecentlytalkedwith) are preparing bills to strengthen the oversight and reporting procedures ofpublictreasurers.The City of Orange will be heard on those matters which affect our finances andour organization directly.THE CITY COUNCIL COMMITMENT You have a commitment from this Mayor and this Council that the City will make recoveryofourinvestmentournumberonepriority. I have confidence in the abilities, dedicationandteamworkofthisnew City Council.Members of the Council worked through the fiscal crisis of the recession andbroughtnewpoliciesofreorganizationtothisforum, resulting in more effective and cost savingoperationsatCityHall, without further taxation. This new Council will tackle the comparablechallengewiththesame "Can Do" spirit and diligence.This message is one of confidence to indicate that we are moving in the right directionandtoassureyouwewillbeanevenstrongerpositionthanweare in today." Page2 CITY COUNCIL MINUTES DECEMBER 13,1994 7.2 REPORT FROM THE CITY MANAGER ON THE ORANGE COUNTYINVESTMENTPOOL. The City Manager gave the following report: "December 1st was a bleak day and we werecertainlysurprisedbythenotificationwehadreceivedthepreviousdaytocometoameetingwithoutanyknowledgeofwhatthatmeetingwasabout. For some years the City had beeninvolvedwiththeCounty's Investment Pool. The City entered the pool in 1991 and like otheragencieshasbeenrewardedbytheCountyTreasurerdevelopingsomegoodreturnsoninvestments. In fact we have copies of his reports dated August 1, 1991, August 1992, September 1993 and September 1994 which indicate no problems. They are glowing reportsfromtheCountyTreasurer. Attached to the reports is the Investment Policy of the County whichisthreefold: safety, liquidity and yield. Our concern is that safety, liquidity and yield were notfollowedinthatorder. In fact we might reverse that and look at what actually took place and thatisyield, liquidity and safety. Staff has taken a great deal of pain and effort reviewing the City's Investment Policy. ThosepoliciesweremandatedbytheCityCouncilandhavebeenfollowedtotheletter, in factreligiously. So as we look at the overall portfolio of the City which, as the Mayor said, totalsapproximately $125,000,000, of that $97,000,000 is not in the County Pool. Today at 3:00 P.M. the County was approaching the Bankruptcy Judge to determine if in fact theexistingportfolioorthatwhichisleftmightbedisposedof, sold, traded, whatever they plan todo. We have been told, it's been rumored that the net effect might be that there will be a 27%loss. No one knows at this point if it's 20%, 25% or even 30%. Ifin fact we are lucky enough tohavethepoolsoldfor75centsonthedollarthentheCitywillreceive, we think, based upon theinformationwehave, approximately $21,000,000 of the $28,000,000 we had invested. Let me share with you where the balance of our money is. Do we have it in good investments? IaskedtheFinanceDirectortopreparethereportformeandIwillgothroughthis. We have fundsinU. S. Treasury Notes, Federal Home Loan Bank Bonds, Federal National MortgageAssociationBonds, Federal Farm Credit Bank Bonds, Bank Acceptance, other Federal agenciesandapproximately $10,000,000 in Corporate notes, and approximately $15,000,000 in the LocalAgencyInvestmentFundwhichismanagedbytheStateofCalifornia. We received a note from Kathleen Brown, State Treasurer, because we called her. The note isdatedDecember7, 1994. She says, 'Government Code Section 16429.3 states that money placedwiththeStateTreasurerfordepositinthelocalagencyinvestmentfundforcities, counties orspecialdistrictsshallnotbesubjecttoimpoundmentorseizurebyanyStateofficialorState agency.' She says, 'I believe that this section clearly prevents the State Pool from ever takingsimilaractionnowcontemplatedbytheCountyofOrangeInvestmentPool.' She further states,The investment practices which precipitated the Orange County bankruptcy filing are prohibitedfromthepoolmoneyprogramoftheState.' She goes on to talk about statutory requirements.She also sent to us, at our request, where their funds are and a large percentage of Page 3 CITY COUNCIL MINUTES DECEMBER 13,1994 7. REPORTS FROM THE CITY MANAGER (Continued) their funds are in Government Bonds, Bills, Notes, Federal Agency Coupons, Certificate of Deposits, Bank Acceptance - they do not have any money in repurchase agreements. They have fundsinFederalAgencyTimeDeposits, Ginny Mae, some corporate paper, etc. They have been carefulintermsoftheirinvestments.The Investment Committee will be looking closely at the funds we will receive as a result of property tax payments in the months of December and January. It is our hope now that those can go into U.S. Treasury Notes based upon a 90 day or 120 day schedule so they can be developed andcomedueatdifferenttimes.What are we doing? The Mayor made it clear we are taking a second and third look at our approach. In terms of staff - we are working diligently at developing scenarios as to what it means in having our money tied up in the Orange County Pool. The scenarios were, we lose all the money; or not only would we lose all the money but we would not receive any property tax;this isworstcase, as far as the pendulum can swing. We've looked at a lesser worse case in terms of apercentageofthefundscomingbacktousfromthepool; property taxes that we have paid, a portion ofthosepriortothefilingofbankruptcy. If they were paid prior to that time they are in the CountyPool. If they were paid after that they would go into a different fund and are distributed totheagencies. I received a small check today for $25,000.00, not a whole lot, but it shows thatthesystemdoesworkandthosefundswillflowtothecitiesandagencies.This morning I met with Management Classifications A and B, approximately 70 employees and talked ofthissituation. They have been asked to go back and look at what effect this might have on their operations. This morning I also met with the Department Heads and that same challenge was giventothemtocomebackandmeetonThursdaymorningwithalistingofitemsthatmaybeaffectedbytheCounty's action so that we can develop a short term plan, 30 days, and a long term plan, 90 days, and an extra long plan that may take us into next year's budget period. I am also meetingwithemployeegroupsandwillsendeachemployeealetterstatingthefactsoftheIssues.I want to reconfirm what the Mayor has said in her statement. The City will pay its bills. The City hasapositivecashflowandisnotgoingtodeclarebankruptcy. The City will carry on the operations ofthisCityinamannerthatisacceptable. Does that mean that everything will be the same? I wish it was. I don't really know. I will be honest with you, I do not know the total effect. Iknowthatinthe1994/95 Budget adopted last July, we had anticipated certain amounts in propertytaxandweknowthat15to20% of that is in the County Pool that we cannot touch because theyhavealreadydepositedthatmoneyinthepool. We may only receive 80% of that which wehadanticipated. We know that the $28,000,000 that we had in the pool was anticipated for interestincomewhichmaynotbederivedatall. In fact, we may lose some of our principle.Irrespective ofthat, is the City sound? Yes. Will we have to curtail services? We may, but first of allwewilllookatifwecantightenourbeltanddothingsdifferently. It won't be a easy road and itmaytakeusseveralyearstoovercomethisproblem.Page 4 CITY COUNCIL MINUTES DECEMBER 13,1994 7. REPORTS FROM THE CITY MANAGER (Continued) Let me close by saying there is a commitment on the part of the management of this City to do the right thing - to bring about an orderly transition from what we thought we had one month ago to what we have now. We will work diligently and take as much time as we need to spend on solving the problem. We will keep the citizens of Orange informed. As a parting shot, this is one of the problems we've had, that we have had dis-information, lack of information or no information. We have had to look at the sources of the Los Angeles Times, Orange County Register. Wall Street Journal has done an outstanding job and Barrons also. We have asked for information and we've not received it. We can point fingers, but I've always been told that if youpointonethere's three pointing back at you, so let's not do that. Let's pull up our boots and godownthisroad. We will keep you informed and not hide anything from you at all and be honest in our dealings. " The City Manager indicated the investment item can be agendized through the City Clerk as an on-going item. The City Manager and City Attorney will prepare staff reports for the nextagendaregardingtheMayor's request for an Action Plan, the new Advisory Investment Committee and the updates on the status of the City's investment at every Council meeting.Mayor Coontz recognized the following speakers:Carole Walters, 534 N. Shaffer, expressed concern over the City's money loss, and that it might create a severe impact on City employees and services. Mrs. Walters referred to the past seven million dollar loss and how it caused layoffs and affected City services. The City officials should watch the City's finances more carefully.Carole Walters, 534 N. Shaffer, President of the Orange Taxpayers, asked the following questions: 1) Where did the City borrow ten million dollars and when is the replacement due? 2)Where is the General Fund money invested? 3) What is the safe process for investing and who makes the decision to invest?1. The City Manager reported in 1993 ten million dollars was borrowed and invested in the County Pool. Net interest income earned was in excess of $300,000.00 and paid back lastJuly.July, 1994,8.7 million dollars was borrowed and in the County Pool with an interest rate of 4 3/4% and anticipated it would have a return of approximately 7%. The difference between 7%and 4 3/4% was the arbitrage that was planned to be realized.2. The City's portfolio is 125 million dollars. 97 million dollars was invested in diversified investments. Along with the 97 million is 28 million that is in the County Pool.Mayor Coontz asked Mrs. Walters to submit her questions to the City Manager for response at a later time.Nick Lall, 6231 E. Mabury Ave., expressed concern of the failure of the Investment Committee to follow City policy and failure of the Council to enforce the policy. Mr. Lall felt the City has failed somewhere and are out eight million dollars.Page CITY COUNCIL MINUTES DECEMBER 13,1994 7. REPORTS FROM THE CITY MANAGER (Continued) The City Manager reported in April, 1994 the Investment Committee determined that the CitywouldreduceitsexposureandreducedtheCity's share from 33 million to approximately 20milliondollars. The City Treasurer was instructed to keep a cap on the investments at 20 milliondollars. One of the problems is the County continued to take the income earned on theinvestments, property tax receipts and there was an automatic transfer into the County Pool. Barbara DeNiro, 1118 E. Adams, asked how did the City get caught in the County Pool andexpressedcommentsrelatingtothesituation. 1.3 APPROVAL OF MINUTES Regular Meeting November 22, 1994 MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAINED - Slater ACTION: Approved.Adjourned Regular Meeting November 29, 1994 MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Special Meeting December 6, 1994 MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved. 1.4 PRESENTATIONS! ANNOUNCEMENTS! INTRODUCTIONS a. Mayor Coontz presented a certificate to Arlene Minor, Board Member for the Friends of the Orange Public Library from the Friends of CaliforniaLibraries.b. Assistant Pastor Dale Newcomb of the Immanuel Lutheran Church presented a check in the amount of $625.00 as a donation totheOrangePublicLibrary.Page 6 CITY COUNCIL MINUTES DECEMBER 13,1994 1.4 PRESENTATIONS/ANNOUNCEMENTSIlNTRODUCTIONS (Continued) c. Judy Solee, Nick D'Amico and Caroll Johnson, members of the Orange International Street Fair, presented a reimbursement check for City services during the 1994 International Street Fair in the amount of$63,882.29. INTRODUCTIONS The City Manager introduced newly-hired Director of Public Works/City Engineer, Harry Thomas and Finance Director, Ann Marie Gallant.1.5 PROCLAMATIONS - None 2.CONSENT CALENDAR TAPE 1665 2.1 Declaration of City Clerk Marilyn J. Jensen declaring posting of City Council agenda of a regular meeting of December 13, 1994, 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. 2.3 Request Council approve Program Supplement No. 017; Local Agency - State Agreement No. 12-5073, Glassell Street Bridge No. 55C-0130 - Reimbursement of Preliminary Engineering Expenses. (A2100.0.Agr.0343.P) FISCAL IMPACT: None. City to reimburse County from State disbursements. ACTION: Authorized Mayor and City Clerk to execute on behalf of City. 2.4 Request for the installation ofa '3-Way' STOP control device at the intersection of White Oak Ridge and Trails End Lane. (S4000.0.S.3. 3)FISCAL IMPACT: None.ACTION: Denied.2.5 Request Council approve appropriation of funds for La Veta, Main, Chapman Street projects. (S4000.S.3. 7)FISCAL IMPACT: $55,000 from Account No. 262-5011-483300- 3227; $45,000 from Account No. 262-5011-483300- 4012 for a CITY COUNCIL MINUTES DECEMBER 13, 1994 2. CONSENT CALENDAR (Continued) ACTION: Approved. REMOVED AND HEARD SEPARATELY) 2.6 Request Council approve acquisition of house at 491 S. Alpine (Owner - Geneva Fulton)in connection with La Veta - Main St widening project. (p2500.0.1)FISCAL IMPACT: Funds budgeted in Account No. 271-5011-483300-3227, at a cost of 165,000 plus all escrow costs to be paid by City.Councilman Slater expressed concern that the staff report indicated as soon as the home was purchased and closed escrow, it would be torn down. The property is currentlybeingrentedandisgeneratingincome. It was felt that by tearing down a house before it needs to be, the City would lose the income, as well as produce a vacant lot which is a blight on the block. It was recommended to hold off demolition and continue the rental of the property until the project is ready to commence.The City Manager commented the renter has been there for many years and will be moving as the transaction takes place to another location. The possibility of holding the house as a rental was discussed. Unfortunately the City does not do a very good job ofrentinghomes. However, Councilman Slater's suggestion will be considered an option and before the house is demolished this item will return to Council.MOTION - Slater SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Moved to authorize Mayor and City Clerk to execute all escrow and related papers on behalf of City.2.7 Request Council approve authorization for advertising to invite bids for construction of sanitary sewer improvements on Cully Drive, from Batavia Street to 1185' East.C2500.M. 3)FISCALIMPACT: Funds are available and budgeted as follows: 550-5011-483200- 5560 - $95,000 (County HCD Fund); 520-5011-483200-5560 - $60, 000.ACTION: Approved.2.8 Request Council award a one-year contract for tank site monitoring at 1350 W. Katella Ave. to Wilbert P. Gaston in an amount not to exceed $18,645.00. (A2100.0. Agr.2326)FISCAL IMP ACT: Sufficient funds have been appropriated and are available for this purpose in Account No. 930-9821-485100-4014.ACTION: Authorized Mayor and City Clerk to execute on behalf CITY COUNCIL MINUTES DECEMBER 13,1994 2. CONSENT CALENDAR (Continued) 2.9 CLAIMS FOR DAMAGES FROM: (C3200.0) a. Arnold I. Kirchenberg b. State Farm Insurance for Ladd and Associates FISCAL IMPACT: None. ACTION: Denied claims and referred to City Attorney and Adjuster. 2.10 Request Council accept the Changes and Modifications Feasibility Study and direct staff to initiate the Changes and Modifications Proceedings. Crawford Hills Assessment District No. 90-1. (Tl100.0. 1)FISCAL IMPACT: The Feasibility Study was paid for by Bank of America. The Changes and Modifications proceedings will be paid for with Assessment District 90-1 funds in Account No. 592- 5015-426700-0000.ACTION: Approved.REMOVED AND HEARD SEP ARATEL Y)2.11 Request Council accept the findings of the Fire Department in compliance with the requirements of Assembly Bill 337, and direct the Fire Chief to notifY the California Division of Forestry of these findings. (C2500. H)FISCAL IMP ACT: None.The Fire Chief recommended the City notifY the Division of Forestry that the City does not need to participate because of the City's proactive stance in the past.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Received and filed, and approved the Fire Chief' s suggestion.2.12 Request Council direct Staff to amend the existing license agreement between the City and Heart for the People, Inc. (Mary's Kitchen) to allow use of the premises and facilities located at 517 West Struck Avenue until January 18, 1999. (A2100.0.Agr. 2059.A)FISCAL IMPACT: None.ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.13 Request Council approve a Homeowner Participation Program Grant and authorize the Treasurer to prepare a warrant in the amount of$999.00. (C2500.G.1. 3.1) CITY COUNCIL MINUTES DECEMBER 13,1994 2. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funds are available in Account No. 316- 6053-427800-1221 Homeowner Participation Program). Case # 576.ACTION: Approved.2.14 Request Council approve a Homeowner Participation Program Grant and authorize the Treasurerto prepare a warrant in the amount of $2,000.00. (C2500.G. 1.3.1)FISCAL IMPACT: Funds are available in Account No. 316-6053-427800- 1221 Homeowner Participation Program). Case #578.ACTION: Approved.2.15 Request Council approve an Operating Agreement between the City of Orange and Bank of America for the continuation of the Interest Subsidy Loan Program. (A2100.0.Agr 2327)FISCAL IMPACT: None. Funds are on deposit in the revolving loan account.ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.16 Request Council approve the request from Tender Hearts, Inc., dba Children's Treasures to conduct their annual "Thank God for Babies Festival" on January 21, 1995 from 10:00 a.m. to 3: 00 p.m. (P1300.0.9)FISCAL IMP ACT: None. All fees will be paid prior to the event and an insurance certificate provided.ACTION: Approved.2.17 Request Council approve the request of Orange CARES to conduct their Move-Along-A-Thon on March 18, 1995 from 7:00 a. m. to 12:00 noon. (P1300.0.9)FISCAL IMP ACT: None. All fees will be paid prior to the event and approved by the Police Department.ACTION: Approved.2.18 Request Council approve the request of the North Orange County National Organization for Women to hold their "Candlelight Vigil" in the Plaza of Orange on January 22, 1995 from 6:00 to 7:00 p.m. (P1300.0.9)FISCAL IMP ACT: None. All requirements will have been met CITY COUNCIL MINUTES DECEMBER 13,1994 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY) 2.19 Request Council authorize the temporary closing of the Main Library from December 23, 1994 through January 8, 1995, for structural and aesthetic modifications in the lobby area. C2500.I) FISCAL IMPACT: $20,628.02 has previously been carried over from fiscal year 1993/94 to finance this remodeling. Mayor Coontz asked how the community will be advised of the temporary closing. The Library/Community Services Director indicated notices have been placed on all Library doors for the past three weeks. Also all the schools have been contacted. MOTION - Barrera SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.2. 20 Request Council approve transfer of $12,289.49 from theLibrary's Patron Donations Account to the following accounts: Library Books, General Office Supplies and Minor Office Equipment. (C2500. I)FISCAL IMPACT: Transfer $ 12,289.49 from AccountNo. 200-293900-9986 to Account No. 200-2011-441101 (General Office Supplies), $1,000; Account No. 200-2011-443101 (Library Books), $4,939.49; Account No. 200- 2011-449100 (Minor Office Equipment), $6, 350.00.ACTION: Approved.2.21 Request Council authorize receipt of a $9,601.00 grant from the California State Library Federal Library Service andConstruction Act Funds). (C2500.I)FISCAL IMPACT: This grant award of $9,601.00 will augment the library's budget.Allocate $9,046.090 to Account No. 200-2001-443101-9913 (MURL Project) and 555.00 to Account No. 200-2001- 429400-9913 ( Local Conference/Training) as mandated in the grant.ACTION: Approved.2.22 Request Council accept donation of $625.00 from Immanuel Lutheran Churchto purchase new books for the Orange Public Library. (C2500.I)FISCAL IMPACT: This donation will be placed in Revenue Account 200-293900- 9986 CITY COUNCIL MINUTES DECEMBER 13,1994 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY)2.23 Request Council authorization to invite bids for SP 3118, Annual Street MaintenanceProject1994-95, various locations. (S4000. 0)FISCAL IMPACT: Funds are available and budgeted as follows: Account No. 262-5021-483300-3112, No. 262-5021-483300_3120, No. 262-5021-483300-3121, and No.262-5021-483300_3181.Councilman Slater asked howthestreetsweretoberehabilitated? The Director of Public Works/CityEngineercommentedtherehabilitationwillinclude slurry sealing and overlay,which is a preventative maintenance program.MOTION - Slater SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.MOTION - Spurgeon SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Items 2.6, 2.11, 2.19 and 2.23 were removed and heard separately; allotheritemsontheConsentCalendar were approved as recommended. END OF CONSENT CALENDAR 1 3. REPORTS FROM MAYOR COONTZ 3.1 Appointment of the following people to the Orange InternationalStreetFairBoardofDirectors, terms to expire 12/31/ 95: (ORI800.0.60)Nick D'Amico, Michael Damon, Carroll Johnson, Chuck See, Sr.MOTION SECOND AYES Spurgeon Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Approved.3.2 Appointment of the following to the FoothilllEastern Transportation CorridorJointPowersAuthority, terms to expire 11/30/96: (ORI800.0.49. 2)Page 12 CITY COUNCIL MINUTES DECEMBER 13,1994 3. REPORTS FROM MAYOR COONTZ (Continued) Mayor Joanne Coontz Councilmember Dan Slater (Alternate) MOTION SECOND AYES Approved. Barrera Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 3.3 Appointment of the following to the Orange County Sanitation District, term to expire 11/30/96: (ORI800.0.7)Councilmember Mark Murphy Mayor Joanne Coontz ( Alternate)MOTION SECOND AYES Approved. Spurgeon Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 3.4 Appointment of Mayor Pro Tem Fred L. Barrera to the Orange County Vector Control District, term to expire 11/30/96. (ORI800.3.20)MOTION SECOND AYES Approved.Murphy Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 3. 5 Appointment of Council member Mike Spurgeon to the Joint Powers Fire Training Authority, term to expire 11/30/96. (ORI800.0.38)Barbara DeNiro, 1118 E. Adams, requested an explanation of the Joint Powers Authority.Councilman Spurgeon provided the explanation.MOTION SECOND AYESApproved.Slater Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Page 13 CITY COUNCIL MINUTES DECEMBER 13,1994 3. REPORTS FROM MAYOR COONTZ (Continued) 3.6 Appointment of Mayor Joanne Coontz to the Orange/Santa Ana Joint Powers Authority, Transportation System Improvement Authority, term to expire 11/30/96. Alternate to be handled by seniority and availability. (ORI800.0.44) MOTION SECOND AYES Approved. Spurgeon Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 3.7 Appointment of Mayor Joanne Coontz to the Growth Management Area Committees,term to expire 11/30/96. Alternates to Areas 3, 4, and 7 (only active ones) will be handled by seniority and availability. (OCI300.D.4)MOTIONSECOND AYES Approved. Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater NOTE: Mayor Coontz commented she has asked each member of the outside agencies to provide Council with occasional status reports. 4. REPORTS FROM COUNClLMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 5.1 Accept with regrets the resignation of Aletha Clark from the Orange Public Library Board of Trustees and instruct the City Clerk to advertise the vacancy pursuant to Maddy Act requirements. (C2500.I.l)MOTION SECOND AYES Approved.Slater Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 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: ( Continued from October 25,1994) (C2500.I.l)Councilman Spurgeon commented the reason this was continued was because of the election of a new Mayor and a new Councilmember.Page 14 CITY COUNCIL MINUTES DECEMBER 13, 1994 5. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS (Continued) Carolyn Cavecche, term to expire 6/30/96 George Gorham, term to expire 6/30/97 Joseph Baker, term to expire 6/30/97 MOTION SECOND AYES Spurgeon Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Approved.6.ADMINISTRATIVE REPORTS TAPE 2306 6.1 Request to modify a non-conforming use - P. J. Mead Books and Coffee. Location:182 South OrangeStreet (C3300.0)NOTE: Councilman Slater abstained from this item.The Director of Community Development reported the building is a church which has been in existence for manyyearsandisbeingpurchasedbyP. 1. Mead who would like to locate a restaurant and bookstoreatthelocation. In addition to the church structure the applicant is wanting to purchaseanadjacentparkingareawhichincludes23parkingspaces. The non-conforming property atthepresenttimedoesnotincludeanyparkingonthesite.The City ordinance allows that a non-conforming use may be changed ifit does not impact the community toagreaterdegreethanwhatistherepresently. The church use has a parking requirement ofapproximately70parkingspaces. The proposed use would require a lesser number, butwouldneedtheparkingspacesmoretimesduringtheweek. The primary impact would betheimpactofanyadditionalparkingasaresultofthebusinesswithinthisbuildingandwhereitwouldoccur. With the addition of the 23 parking spaces the impact would be minimized and theapplicantisagreeingtoencourageemployeesandcustomerstoparkinpublicparkingareastothenorthandnotintheresidentialarea. The applicant is in the process of purchasing the church andtheadjacentparkinglot.Staff has recommended that the proposed restaurant retail use of the structure at 182 South Orange willnothavegreaterimpactonthesubjectsitethanthepreviouschurchuseofthestructure. However, without Council's approval, the non-conforming use would not be able to change.Alice Clark, 205 N. Pine St., expressed concern regarding the parking situation. Mr. Mead runs a businessataUhoursinaresidentialdistrictnowandisveryinsensitivetotheharmhedoestohisneighbors.Page 15 CITY COUNCIL MINUTES DECEMBER 13,1994 6. ADMINISTRATIVE REPORTS (Continued) Carole Walters, 534 N. Shaffer, commented Mr. Mead is rude to his neighbors on Cambridge Street and will be just as rude to these neighbors. Mrs. Walters asked why Councilman Slater abstained from this issue. The City Attorney indicated he had discussed this matter with Councilman Slater prior to this meeting and the only requirement of the Conflict ofInterest Code is that an abstention be recorded. Gary Mead Jr., 615 E. Jefferson, commented the church property has been purchased by his family, who are also negotiating for the 23 space parking lot with Mr. Higgins. Mr. Mead indicated he will educate the employees to park in the City parking lot and post notices inside the restaurant so customers will not park in the neighborhood, and will participate with the City to help finance the City parking structure. The Director of Community Development remarked if Council gives approval it could be contingent upon parking being provided. The current ordinance requires 47 spaces for this use. Council expressed concern with future growth as it relates to parking, and what triggers the return of this project to Council ifit does not work out. Also concern was expressed regarding equating the use of a church and a restaurant retail as being the same. MOTION - Murphy SECOND - Coontz AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABST AlNED - Slater Moved to continue this item to January 10, 1995 Council meeting and request staff to bring forward suggested conditions that might allay fears expressed earlier.7.REPORTS FROM CITY MANAGER TAPE 3095 7.1 Report on Theo Lacy Jail settlement. (OCI300.J)Councilman Spurgeon abstained on this item due to a conflict of interest.The City Attorney reported his office is currently working with the County Counsel's office on court documents regarding a conceptual agreement and additional time is required. The City Attorney suggested an Adjourned Regular Meeting sometime next week to discuss the documents.The City Manager reported the City has shared in major part the positions that have been taken by the County and City. The documents will detail the limitations and have a settlement agreement that will have to be approved by the court. One ofthe questions is what impact the filing of bankruptcy will have on this issue.Page 16 CITY COUNCIL MINUTES DECEMBER 13, 1994 7. REPORTS FROM THE CITY MANAGER (Continued) Edmund Werner, 815 S. Esplanade, Chaplain for Orangewood Children's Home, expressedconcernregardingthesafetyforOrangewood. Barbara DeNiro, 1118 E. Adams, voiced concerns and asked questions regarding the number ofmaximumprisoners. Bob Bennyhoff, 10642 Morada Dr., commented on the past history of this issue and suggestedCouncilapprovetheagreementwhichwasapprovedbythecourt, which is a bargaining positionfortheCity. Mayor Coontz suggested that all speakers receive the "deal points" on Theo Lacy for theirrevIew. MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Slater ABSTAINED - Spurgeon,Moved to accept the report.7.2 Report on the Orange County Investment Pool.See Page 1 of the Minutes for discussion of this item.)8.LEGAL AFFAIRS TAPE 3700 8.1 RESOLUTION NO. 8407 A Resolution of the City Council of the City of Orange revising the conflict of interest code for the City of Orange. (A2500.0)Barbara DeNiro, requested an explanation of the item. The City Attorney explained the resolution is to bringtheCity's designated employees and their titles up to date.MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8407 as introduced be adopted and same was passed and adopted by the preceding vote.Page 17 CITY COUNCIL MINUTES DECEMBER 13, 1994 8. LEGAL AFFAIRS (Continued) 8.2 RESOLUTION NO. 8413 A Resolution of the City Council of the City of Orange upholding the recommendation of thePlanningCOmmissionoftheCityofOrangeanddenyingavariancetoallowwaiverofdevelopmentstandardsforbuildingsetbacks, required number of on-site parking spaces, and residential unit size. (V1300. 0)Variance 1974-94,Applicant: Dwight Clark MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAINED - Slater That Resolution No. 8413 as introduced be adopted and same was passed and adopted by the preceding vote.8.3 RESOLUTION NO. 8414 A Resolution of the City Council of the City Of Orange upholding the recommendation of the Planning CommissionoftheCityofOrangeandgrantingavariancetoallowwaiverofthestreetsidelandscape area along Pepper Street and a 10% reduction of the street side landscape area along LaVetaAvenue. (V1300.0)Variance 1976- 94, Administrative Adjustment 94-07Applicant: St. Joseph Hospital MOTION - Barrera SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAINED - Slater ThatResolutionNo. 8414 as introduced be adopted and same was passed and adopted by the preceding vote.8.4RESOLUTIONNO. 8415 A Resolution of the City Council of the City of Orange upholding the recommendation of the Planning Commission of theCityofOrangeandgrantingaconditionalusepermittoallowexpansionofahospitalUponpropertysituatedat1100WestStewartDrive. (C3300.0)Conditional Use Permit 2075- 94 Applicant: St. Joseph Hospital Page 18 CITY COUNCIL MINUTES DECEMBER 13,1994 8. LEGAL AFFAIRS (Continued) MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAINED - Slater ThatResolutionNo. 8415 as introduced be adopted and same was passed and adopted by the preceding vote.8.5RESOLUTIONNO 8418 A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 94-8 adjusting a lotlineofcertainrealpropertysituatedatLots57and58ofTract14848.C2500.M.16.1 )Owners: Beazer Homes of California, Inc.MOTION SECOND AYES Spurgeon Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8418 as introduced be adopted and same was passed and adopted by the preceding vote.8.6 RESOLUTION NO. 8419 A Resolution of the City Council of the City of Orange consenting to the designation of a certain City Bridge and Highway as aCountyBridgeandHighwayforseismicretrofitandrelatedimprovements. (H1200.0)MOTION SECOND AYESBarreraMurphyMurphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8419 as introduced be adopted and same was passed and adopted by the preceding vote.8.7 RESOLUTION NO. 8421 AResolutionof the City Council of the City of Orange consenting to the approval by the Orange Redevelopment Agency of a second amendment to dispositionanddevelopmentagreementamongtheOrangeRedevelopmentAgency, Home Depot U. S.A., Inc., and XTRA Lease, Inc.A2100.0.Agr 1798.2)Barbara DeNiro, 1118E. Adams, requested an explanation of the resolution.Page 19 CITY COUNCIL MINUTES DECEMBER 13,1994 8. LEGAL AFFAIRS (Continued) The City Attorney eXplained parcel number 2 is being bought by XTRA Lease, Inc. They were concerned with some of the provisions the City had with Home Depot applying to them and requested this clarification. The City is proposing the second amendment be approved by Council to approve the clarification's within the amendment. MOTION SECOND AYES Spurgeon Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8421 as introduced be adopted and same was passed and adopted by the preceding vote. 8.8 RESOLUTION NO. 8422 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 934-13; Santiago Canyon RoadNilIa Park Road from Lemon to Linda Vista. (A2100.0.Agr.2186)MOTION SECOND AYES Slater Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8422 as introduced be adopted and same was passed and adopted by the preceding vote.8.9 ORDINANCE NO. 12-94 An Ordinance of the City Council of the City of Orange setting cable television customer service standards in accordance with the Cable Television Consumer Protection and Competition Act of 1992 and California Video Customer Service Act. (A2500.0)MOTION SECOND AYES Slater Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 12-94 have second reading waived and be adopted and same was passed and adopted by the preceding vote. 9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS Carole Walters, 534 N. Shaffer, requested that at the next Council meeting the 'water in-lieu' fee of 6% for oneyearbeplacedontheagendatodiscussrescindingit.Page 20 CITY COUNCIL MINUTES DECEMBER 13,1994 10. ORAL PRESENTATIONS (Continued) Mayor Coontz commented this item will be reviewed and discussed during the budget processbeginningJanuary, 1995. Mrs. Walters indicated she would wait until January. However, ifit is not rescinded, within 48hoursthepeopleofOrangewillbesigningpetitions. 11. RECESS MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 6:50 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. United Pacific Insurance Company, et aI., Orange County Superior Court Case No. 724236.NOTE: The remaining items were discussed during Closed Session after the 7:00 P.M. Session.b. Conference with Legal Counsel - anticipated litigation.Initiation oflitigation pursuant to Government Code Section 54956.9(c) (three potential cases).c. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City ManagerorCityCouncilpriortosuchrecessunlessthemotiontorecessindicatesanyofthematterswillnotbeconsideredinClosedSession.7:00 P.M. SESSION 12. INVOCATION Pastor Jim Scott, Plaza Bible Church 12.1 PLEDGE OF ALLEGIANCE TO THE FLAG Mayor Pro Tem Fred L. Barrera 12.2 ANNOUNCEMENTS _ None 12.3 INTRODUCTIONS - None 12.4 PROCLAMATIONS - None 12. 5 PRESENTATIONS _ None Page 21 CITY COUNCIL MINUTES DECEMBER 13, 1994 13.PUBLIC HEARINGS TAPE 4478 13.1 NON-DISPOSAL FAClLITY ELEMENT OF THE PUBLIC RESOURCES CODE,CITY OF ORANGE: (C2300. L)Time set for a public hearing to consider the adoption of the Non-Disposal Facility Element of the Public Resources Code, Title 14, Chapter 9, in compliance with Assembly Bill 440, outlining the facility utilized by the City of Orange for processing of materials not designated for disposal at landfills and amending it to the City's Source Reduction and Recycling Element as adopted by Council on March 24, 1994.MAYOR COONTZ OPENED THE PUBLIC HEARING.The Public Works Street Superintendent reported in August, 1992 a non- disposal facility element required by AB 3001 amended AB 939 to include identification offacilities designed to receive the City's recyclable waste not designated to be disposed at the landfill. In July, 1994 the Materials Recovery Facility located at 2050 N. Glassell St., Orange, operated by Orange Resource Recovery Systems Inc., a subsidiary of Orange Disposal Service, opened. The facility was constructed to serve the needs of Orange to meet the requirements of AB 939 and for consolidation of waste to the landfill. In October, 1994 the Non- Disposal Facility Element was prepared. This preliminary draft was sent to the County of Orange Local Task Force and returned with no changes.Upon adoption, the Non-Disposal Facility Element will become part of the Source Reduction and Recycling Element and sent to the State Integrated Waste Management Board for final approval.THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING.RESOLUTION NO. 8420 A Resolution of the City Council of the City of Orange adopting a Non-Disposal Facility Element pursuant to the requirements of the Public Resources Code.MOTION SECOND AYES Spurgeon Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8420 as introduced be adopted and same was passed and adopted by the preceding vote.TAPE 4706 13.2 CABLE TELEVISION BASE RATES AND CHARGES FOR THE BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT: (Fll00.0)The public hearing to consider the rates and charges which exist and are proposed to be implemented by Cablevision of Orange for cable television Basic Service Tier and associated equipment has been continued from 8/23/94, 9/27/94 and 10/25/94 to this CITY COUNCIL MINUTES DECEMBER 13, 1994 13. PUBLIC HEARINGS (Continued) MAYOR COONTZ OPENED THE PUBLIC HEARING. Mayor Coontz read the following statement: The City Council met with the City Attorney this afternoon to discuss possible litigation againstCablevisionofOrangeandTimeWarner, its parent corporation, due to its failure to effectivelyblocksexuallyexplicitprogramming. We have been advised by the City Attorney that this failurepossiblyviolatesfederalandstatelawsbecauseoftheaccessibilityofthistypeofprogrammingtominors. Thus far, Cablevision of Orange, has been unwilling to take remedial action which issatisfactorytotheCity. Based on the recommendations of the City Attorney, the City CouncilhasdirectedtheCityAttorneytoimmediatelytakethefollowingactions: I. Impose a $500 civil penalty against Cablevision per City ordinance.2. Within a week, work with the community to gather evidence and submit formal complaintsagainstCablevisionanditsmanagementtotheCountyDistrictAttorney, the State AttorneyGeneralandtheFederalCommunicationsCommission. These agencies, and not the City, havetheauthoritytoprosecutebasedonthestateandfederallawspossiblybeingviolated.3. Apprise Cablevision of Orange in writing that its current failures constitute a material breachofthefranchiseagreementandpossiblegroundsfornon-renewal of thefranchise.4. Retain a consultant to review Cablevision's claims that the technology to effectively blocktheprogrammingdoesnot exist.5. Request that Cablevision install traps on all non-subscribing homes.6. Request that the programming not be shown until 9 p.m.If the above steps are ineffective, possible future action includes:I. On the effective date of the City's new customer service ordinance, January 12, 1995, begin imposing the civil penalties authorized by that ordinance, which can reach $4,800for repeated violations.2. Require effective blocking of the programming as a condition of any newfranchiseagreement.3. Continue administrative efforts to reach a solution and explore other possible options.Christine McNerney, Communications Support Group, hired by the City to provideatechnicalandfinancialauditonCablevisionofOrange's rates gave the presentation.Mayor Coontz read the following recommendations by staff: Adopt Resolution 8416findingthecurrentratebeingchargedbyCablevisionofOrangeforthebasicservicetierbeingunreasonableinaccordancewiththerulesandregulationsoftheFederalCommunicationsCommissionandorderingareductionofsuchratesandrefundsfor all overcharges.THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSEDTHE PUBLIC HEARING. CITY COUNCIL MINUTES DECEMBER 13,1994 13. PUBLIC HEARINGS (Continued) RESOLUTION NO. 8416 A Resolution of the City Council of the City of Orange ordering refunds and setting rates for Basic Cable Television Service in accordance with Federal Communications Commission Form 1200. MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Resolution No. 8416 as introduced be adopted and same was passed and adopted by the preceding vote.TAPE 5321 13. 3 TRANSPORTATION SYSTEM IMPROVEMENT PROGRAM, AREAS BAND C,CITY OF ORANGE: ( A2500.0-Area B & C)Time set for a public hearing on petition by the City of Orange to consider the adoption of a revised project list and fee structure for the City's Transportation System Improvement Program TSIP), Areas Band C. Area B is generally located west of the Costa Mesa SR55 Freeway.Area C is generally located east of the Costa Mesa SR55 Freeway. The fee is assessed against new development and redevelopment projects in the City for the purpose of funding transportation system improvements throughout the City.The public hearing was not opened.MOTION SECOND AYES Spurgeon Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to continue the hearing to February 14, 1994. No other action was taken.TAPE 5339 13.4 TENTATIVE TRACT MAPS 14983, 14984 AND 14985, CONDITIONAL USE PERMIT 2076-94, ZONE CHANGE 1170-94, MODIFICATION OF CONDITIONS OF APPROVAL OF VESTING TENTATIVE TRACT 13529 AND CONDITIONAL USE PERMIT 1678- 88, B A PROPERTIES (CRAWFORD HlLLS): (T4000.0)Time set for a public hearing on petition by B A Properties to consider a request to modify an approved development plan for this site. The previously approved project (approved in 1988)allowed construction of 400 dwelling units, including a mix of single family attached, single family detached, townhouse and condominium units.This proposal is to construct approximately 298 detached single family dwelling units. The proposed lots range in size from approximately 3,150 sq. ft. to one acre or more. A condominium Page 24 CITY COUNCIL MINUTES DECEMBER 13,1994 13. PUBLIC HEARINGS (Continued) component is also included. This proposal would revise only portions of the site. The previouslyapprovedplansfor17estatelotsalongthesoutheasternportionofthepropertyandthe33singlefamilyhomesonthenortherlyportionofthepropertywouldremainunchanged. To develop the property as proposed requires approval of the following applications: Tentative Tract Maps 14983, 14984 and 14985 - A request to re-subdivide portions of thepreviouslyapprovedmap. Conditional Use Permit 2076-94 - A request to develop the project as a planned unitdevelopment. Zone Change 1170-94 - A proposal to rezone approximately 2 acres from RO (Recreation OpenSpace) to RI-7 (Single Family residential, minimum lot size 7,000 sq. ft.) or otherdesignationdeterminedappropriate, to allow construction of 3 single family residence in place of atennisfacilityforprivateuseofprojectresidentsandtoadjusttheboundariesbetweentheA-I Agriculture) and R-2-7 (Residential Duplex) Districts relative toCityownedproperty containing a water reservoir.Modification to Vesting Tentative Tract Map 13529 and Conditional UsePermit1678 _ A request to modifY some of the existing conditions of approval. The project areaincludesanextensionofCrawfordCanyonRoadfromitscurrentterminusnorthofChapmanAvenuetoCannonStreetandincludesapproximately182acreseastofthisplannedroadwayand north of Chapman Avenue.ENVIRONMENTAL INFORMATION: Environmental ImpactReport496waspreviouslyapprovedforthisprojectsite. For this modification to the project, anexpandedinitialstudyandaddendumhavebeencompleted. The previous EIR andcurrentaddendumadequatelydescribetheanticipatedenvironmentaleffectsandfeasiblemitigationmeasuresassociatedwiththe project as now proposed.MAYOR COONTZ OPENED THE PUBLIC HEARING.The Director of Community Development reported on the project's historyandthemostrecentapprovalwasin1989whichallowedatotalprojectof400units, acombinationofestatelots,detached single family, condominiums and a 100 acres open space to thewestsideofCrawfordCanyonRoad. The subject request is to modifY those approvals toprovideamoremarketableproductforthecurrentowneroftheproperty. The product type on the 198unitsistobechangedfromattachedtodetachedindividualhomes. Some of those willbeincondominiumtypeownershipandindividuallots. The lot sizes on the 198 range from 3,000 to 7,000sq. ft. Each of these units will have driveways from private streets 18 ft. in length and aminimumofaIDft.setback in the front for the living portions of the units. The remaining 103unitsaresinglefamilywithlotssizesrangingfrom7,000 sq. ft. to one acre. The entire projectis a planned CITY COUNCIL MINUTES DECEMBER 13, 1994 13. PUBLIC HEARINGS (Continued) Crawford Canyon Road is to be completed with this project. The Assistant City Attorney hasprovidedamemorandumtoCouncilregardingfundingwhichsuggestsasubstituteconditionto beplacedinanyapprovalonthetractwhichwouldprotecttheCityinitsrequirementstoconstructthestreet. The Planning Commission recommended approval of the project and made a separate motionrecommendingCouncildirecttheTrafficCommissionandTrafficEngineeringstafftogivespecialconsiderationtotrafficconditionsonCrawfordCanyonRoadandCannonStreetasaresultoftheroadwaylinkage. The Traffic Engineer reported at the Traffic Commission meeting the following concerns byresidentswererecommendedtobeinvestigatedassoonaspossible: 1) Grossly excessive speedsonbothendsoftheexistingroadway. 2) Failure of motorists to stop at the existing stop controlatbothendsoftheroadway. 3) Need for speed enforcement around Linda Vista Elementaryschool. The Traffic Engineer presented additional recommendations: 1) Prior to the opening of theroadwayprovideaschoolagepedestrianprotectionprogram, and place a crossing guard at theintersectionofCannonandSanJuan. 2) At Crawford and Avenida Palomar install a crossingguard. 3) Once the street is open, evaluate 5 intersections along the road: Cannon and San Juan,to see if the crossing guard and three-way stop are adequate; Cannon and Cerritos, intersectionofCrawfordandCreekside, Crawford and Stillwater, and Crawford and Avenida Palomarcheckingtoseeifadditionaltrafficcontrolis needed.The Traffic Engineer explained the signal at the equestrian crossing occurring at the northerlyendofthedevelopmentwouldbeattheresponsibilityofthedeveloper. The PlanningCommissionrecommendedthemaintenanceoftheequestriancrossingbebornebythehomeowners association.Concern was expressed by Councilman Slater regarding cars traveling southbound onCrawfordCanyonatexcessivespeedsandaskedifacrosswalkatAvenidaPalomarwouldbeinvitingdisasterwhichhaveoccuredatotheruncontrolledcrosswalks. The Traffic Engineer commentedacrosswalkwouldnotberecommended, it would be a crosswalk with a crossing guard orsomeothercontrol device.The following people spoke:Kevin Canning, 85 Argonaut, Mission Viejo, representing B A Properties, spoke supportingthecity's efforts on traffic safety and will take immediate action to take care of the erosionproblemsthatoccurredontheproject site.Ralph Dumke, 1314 N. Catalina St., President of the Los Tesaros Homeowners AssociationandBoardofDirector, requested adding a condition that the resulting through road will notbeopenedforpublicuseuntilaCityplanner, City Traffic Engineer and the developers can developaplanacceptabletotheOrangeParkAcres, Villeurbanne and Los Tesaros Homeowners Page CITY COUNCIL MINUTES DECEMBER 13, 1994 13. PUBLIC HEARINGS (Continued) Associations, Linda Vista School PT A, Orange School District and other directly impactedcitizensprovidingsafeaccessfromsidestreetsontothenewthoroughfare. Speed control of thetrafficcomingdowna1/2 mile is for the safety of the children. To ensure funds are available toinstalladequatetrafficcontrolsandbecausethereasonforsuchcontrolsisduetothecompletionoftheroadaspartofthedevelopment, it was further requested that part of Council's actionincludeanadequatebondbepostedbythedeveloperstocovertheirfairshareofthecostor thattheybegiventheopportunityofinstallingwhatevermeasuresaredeemednecessary. James Bradshaw, 1139 Avila Place, asked what was the date for EIR 496? Mr. Bradshaw furthercommentedtheEIRismorethan9yearsoldandhasnotbeenupdatedsincethenandtheneedsshouldbeaddressedagain. It was asked what the total density of population is for the project anditwasfelttheagendawasmisleading. Suzette Gibbs, 5808 E. Muir Dr., expressed concern regarding the blasting that occurred a fewyearsagointheareafortheroad. Roger Long, 5744-38 Creekside, President ofVilleurbanne Homeowners Association, expressed concern with traffic on Crawford Canyon and school children's safety. It was requested atrafficstopsignonCrawfordCanyonRoadbeinstalledandacrosswalkbeinstalledattheonsetoftheopeningofthe road.Bill Ricigliano, 5610 E. Patra, expressed agreement with traffic concerns.The Traffic Engineer commented the traffic volume would not go beyond 14,000 trips per dayonCrawfordCanyonRoad. It was also indicated there is no possibility of Crawford beingextendedto Jamboree.Mark Sanford, 10591 Meads, Orange Park Acres, commented they have been working on thetrailissueinOrangeParkAcresforthepasttwoyears. Contact has been made with the developerandtherearenowacoupleofpotentialcrossingsbeing discussed.The City Engineer reviewed the blasting that was previously done on the road and indicatedthegeologistontheprojectsitebelievestheremainderofgradingcouldbedonewithoutblasting. If blasting were to occur, however, it would be part of a new ordinance the City has composedbuthasnotyetbeenapproved. The City has encouraged the developer to complete theprojectwithoutblasting. rfblasting damaged homes, the developer would be responsible.The City Engineer reported the developer has been contacted regarding erosion and theyhavetakenstepstoalleviatethecriticalissues. Chain link fencing has been placed around certainareas.They have been notified effective September, 1994 that they must improve the erosioncontrolplantotakecareoftheonsiteproblems. City staff will work with the developer to abatetheseproblemsassoonaspossibleandnotwaitforthemapto record.The City Engineer commented EIR 496 and subsequent updates meets CEQA standards.Page CITY COUNCIL MINUTES DECEMBER 13,1994 13. PUBLIC HEARINGS (Continued) Councilman Slater asked if the chain link fence would stay in place on the west side of CrawfordRoad. Also, would there be elimination of sidewalks in certain areas of the project so entrancestotheestatesizedlotswouldhavearuralappearance. Mr. Canning indicated the chain link fence would remain and he would work with staff to comeupwithanassessmentregardingtheremovalofsidewalks. The developer will comply with theblastingordinanceandtrytocompletetheprojectwithoutblasting. The City Attorney opined the agenda wording on this item meets the Brown Act requirements. Councilman Murphy, for the record, indicated this proposal reduces the density approximately25% while maintaining the open space. THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLICHEARING. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept previously approved Environmental Impact Report 496 as it adequately describes theanticipatedenvironmentaleffectsandreasonablemitigationmeasuresassociatedwiththeprojectasnowproposed.MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Tentative Tract Map 14983 as outlined in Planning Commission Resolution No. PC-49-94andthisactionshallnotbedeemedasapprovalofthetentativetractmapuntilresolutionsofapprovalareadoptedbytheCityCouncil. The motion includes revised conditions outlined intheCityAttorney's Memorandum dated 12/13/94. The applicant has agreed with the change requiringthatthemoneyfortheroadwouldbeputupwillbetendaysinsteadof5days.MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Tentative Tract Map 14984 as outlined in Planning Commission Resolution No. PC-50-94 asamendedbytheCityAttorney's memorandum dated 12/13/94.MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Page 28 CITY COUNCIL MINUTES DECEMBER 13, 1994 13. PUBLIC HEARINGS (Continued) Moved to approve Tentative Tract Map 14985 as outlined in Planning Commission ResolutionNo. PC-51-94 as amended by the City Attorney's memorandum dated 12/ 13/ 94. MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Zone Change 1170-94 as outlined in Planning Commission ResolutionNo. PC- 52- 94. MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Conditional Use Permit 2076-94 as outlined inPlanningCommissionResolution No. PC- 53- 94. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve modification to conditions of approval of Vesting Tentative Tract13529asoutlinedinPlanningCommissionResolutionNo. PC- 54- 94 as amended. MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve modification to Conditional Use Permit No. 1678-88 asoutlinedinPlanningCommission Resolution No. PC- 55- 94.MOTION SECOND AYES Murphy Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to direct the traffic staff to conduct traffic studies at the intersections ofCannonandSanJuan, Cannon and Cerritos, Crawford and Creekside, Crawford andStillwater, Crawford and Avenida Palomar. Additionally, that the studies include the placement ofcrossingguardsatCannonandSanJuanandCrawfordandAvenidaPalomartobeinplaceupon theopeningoftheroadway. Staff to conduct those hearings before the Traffic Commissionnecessarytopostprovisionalspeedlimits, 25 mph between Santiago Canyon Road and Cerritos, and 35 mph between Cerritos and Chapman Avenue. Staff was directed to study the intersectionofthem<\ior tract entry off Chapman Avenue regarding site distance and the possibility of a traffic signal and CITY COUNCIL MINUTES DECEMBER 13,1994 13. PUBLIC HEARINGS (Continued) each of the above described five intersections on Crawford; that they be evaluated for traffic control devices including stop signs and traffic signals; and deployment of crossing guards as needed to ensure safety from day one. To include the recommendations made by the Planning Commission regarding the issues at their hearing, excessive speed, failure of motorists to stop at existing stop signs and special attention to speed enforcement at local school sites. These issues are to be addressed in a timely manner. 14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Alice Clark, 204 N. Pine Street, expressed concern that Councilman Spurgeon had a conflict of interest by being employed by the County and attending Closed Council Sessions on City and County issues. Mrs. Clark requested the immediate resignation of Councilman Spurgeon.The following people spoke in opposition to the Cable TV channels 44 and 45 - Playboy and pornographic television. ( C2500.D)Brian McHugh, 1531 E. Concord Jonathan Davis, 3624 Green Garden Lane Chris (last name not given), 4530 E. Wickham Ben Bright, 700 N. Westwood Joey Grady, Orange (no address given)Julie Lighthipe, 18456 Lincoln, Villa Park Brandon Davis, 3644 Green Garden Lane Evelyn Bradley, 11913 Arlee Ave., Norwalk Monique Nelson, 38 Amberleaf, Irvine Carolyn Cavecche, 275 N. Shaffer Audrey M. Hoffmann, 1910 N. Woodside Martha Grady, 2828 Maple Tree Patricia D. Christiansen, 33841 Calle Conejo, San Juan Capistrano Kathi Davis, 3644 Green Garden Lane Alice Clark, 205 N. Pine St.Their concerns were expressed as follows:Channels 44 and 45 should not be shown until 12 midnight to 6 a.m. and that this be conveyed to Cablevision of Orange and Time-Warner.The channels should be taken off the air until the traps or some other blocking device works effectively. The second generation traps do not work.Suggested placing a person on the Community Video Advisory Board or creating a community committee to assist with this type of problem.Page 30 CITY COUNCIL MINUTES DECEMBER 13,1994 15. ORAL PRESENTATIONS (Continued) Kristy Casasanta, General Manager of Cable vision of Orange, 154 N. Glassell, introduced Tom Miller, 600 Anton Blvd., #1600 Costa Mesa, Counsel for Cablevision of Orange. Mr. Miller commented Cablevision of Orange and Time-Warner is taking this matter seriously. The scrambling problem and traps is a limited technical problem of incompatibility between scrambling systems and cable ready TV.Council discussion ensued relative to solving these problems in a timely manner. It was suggested the channels be taken off until a device can work properly for everyone. It was asked how pay-for-view channels works and why this couldn't be applied to this type of problem.POST OFFICE BATTLES Barbara DeNiro, 1118 E. Adams, commented she is having a continuing battle with the Post Office. Mrs. DeNiro submitted her comments to the Mayor for Council' s review.Mrs. DeNiro indicated the parkway tree was being removed and the street crew found a major gas line which was unmarked. (S4000. S.3)The City Manager will investigate. RECESS MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon Slater Moved to recess at 9:45 p.m. to closed session to finish the discussions on the page as well as adding the following pending litigation cases which came up after posting the regular agenda: Bankruptcy Petition of County of Orange as Debtor and City of Orange as Creditor, U. S. Bankruptcy Court Case No. SA9422272, and the County Investment Pools, Debtor, City of Orange Creditor, SA 9422273. Page 31