01-14-1992 Council Minutes37'4 APPROVED BY CITY COUNCIL ON JANUARY 28,
CITY COUNCIL MINUTES
OF A REGULAR MEETING
1992.
ORANGE, CALIFORNIA
JANUARY 14, 1992
The City Council of the City of Orange, California convened this 14th
day of January, 1992 at 3:00 p.m. in a Regular Meeting in the Council
Chambers. 300 E. Chapman Avenue. Oranqe. California.
3:00 P.M. SESSION
1. OPENING
1.1 PLEDGE ALLEGIANCE TO THE FLAG
1.2 ROLL CALL
PRESENT - Steiner, Barrera, Coontz, Spurgeon ABSENT -
Mayor Beyer 1.3
APPROVAL OF MINUTES Regular Meeting -
December 10, 1991 MOTION - Coontz SECOND -
Spurgeon AYES - steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer ACTION: continued to
January 21, 1992.Regular
Meeting - December 17, 1991 MOTION - steiner
SECOND - Coontz AYES - Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor
Beyer ACTION: Approved.
1.4 PROCLAMATIONS 1.5 PRESENTATIONS/
ANNOUNCEMENTS/INTRODUCTIONS 2.CONSENT
CALENDAR TAPE
95 2.1
Declaration of city Clerk Marilyn
J. Jensen declaring posting of
City Council Agenda of a regular meeting of January 14,1992,
at Orange Civic Center, Main Library, Police Facility at 1107 N.
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.Page 1
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CITY COUNCIL MINUTES JANUARY 14, 1992
2. CONSENT CALENDAR (Continued)
2.2 Authorize Mayor and Director of Finance to draw warrants on
City ~reasurer in payment of demands.
ACTION: Approved.
2.3 Request from Chapman University students to use portions of
the Orange Plaza sidewalk on January 19 and 20, 1992 during
the hours of 7:00 a.m to 5:00 p.m. for filming a class
project, and to waive all fees. (P1300.0.9)
ACTION: Approved.
REMOVED AND HEARD SEPARATELY)
2.4 Request approval of Agreement for Consulting and Legal
Services provided by the firm of Liebert, Cassidy & Frierson.
A2100.0 A.1899)
Council questioned the background of the law firm. The city
Attorney indicated this is a labor firm specializing in public
agency management and is used on an as-needed basis,
generally not to exceed $7,000.00 per year. The firm also
provides training sessions on disciplinary actions, labor
relations contracts and other personnel matters, within the terms of
the contract. The contract provides for seven full days
of training programs and includes a fee rate increase.
Council was not in favor of approving a rate increase, due to
the current economic
situation.MOTION - steiner
SECOND - Spurgeon AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer ACTION: Denied, due
to the increase in rates.MOTION - steiner SECOND -
Coontz AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer Moved to Direct
Staff to explore the
possibility of competitive bids for these services and return
to Council with recommendations.REMOVED AND HEARD SEPARATELY)2.5
Request
approval of Police Towing
Agreement between the City and tow operators Farwest Towing, Tony's
Unocal and Towing,Tri Star Towing and Tows-R-Russ
for a five-year period.A2100.0 A.1900)
Page 2
37b
CITY COUNCIL MINUTES JANUARY 14, 1992
2. CONSENT CALENDAR (Continued)
Councilwoman Coontz asked how the towing companies were
monitored by the City in terms of customer satisfaction. She
has received a lot of complaints about the way the vehicles
were handled by the towing companies and their communication
or lack thereof, with the people whose vehicles were picked
up. The Director of General Services reported complaints were
handled by their department, or the Police Department. The
new contract has a Evaluation committee to handle complaints
and investigate, if necessary. The new contract is set up on
a demerit system. After a certain number of demerits, the
contractor is out for the balance of the five-year
period.MOTION - Steiner
SECOND - Coontz AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer ACTION: Authorized the
Mayor and City Clerk to execute on behalf of the
City.2.6 CLAIM
FOR DAMAGES FROM: (C3200.0)1. DAMON, PATRICIA
FEATHER, VIRGINIA THORPE AND VERNA SHAFFER for an alleged
incident occurring on or about August 19, 1991.2. JOHN DOWDEN
for an alleged incident occurring on or about October 30, 1991.
3. ALBERT AND
HELEN OTTOBRE for an alleged incident occurring on or about
August 22, 1991.4. SOUTHERN CALIFORNIA
EDISON CO. for an alleged incident occurring on or
about September 26, 1991.5. CARMEN SALAZAR
for an alleged incident occurring on or about June 17,
1991.ACTION: Denied claims
and referred to City Attorney and Adjuster.2.7
Request
approval of Memorandum of Understanding between Orange County Housing Authority
and City of Orange for the Rental Rehabilitation Program. (A2100.
09 A.1901)2.8 ACTION:
Approved.Request
Council approve
Parcel Map No. 91-156 and accept the dedication of
access rights to Chapman Avenue and easement for water line
purposes. (C2500.M.16.1)ACTION: Approved.
o Page
3
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CITY COUNCIL MINUTES JANUARY 14, 1992
2. CONSENT CALENDAR (Continued)
2.9 Request Council approve a Quitclaim Deed to Nicholas Samia,
covering an old abandoned water main easement that is no
longer needed, located south of La Veta and west of Shaffer
street. (D4000.0)
ACTION: Authorized Mayor and City Clerk to execute on behalf
of the City.
2.10 Request Council approve agreement with Larry Faber to connect
8592 and 8594 Orange Avenue in unincorporated County
territory, to city-owner sewer. (A2100.0 A.
1902)ACTION: Authorized Mayor and City Clerk to execute on
behalf of the
City.MOTION - steiner
SECOND - Barrera AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Items 2.4
and 2.5 were removed and heard separately. All other items on the Consent
Calendar were approved as recommended.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR BEYER 3.1 Approve
the appointment of the following persons to the orange International Street Fair
Board of Directors, based on the Orange International Street Fair
Committee's recommendations, term to expire 12/31/92: (
OR1800.0.60)Gail Hewitt Kenneth
Levy Hank
Mascolo Al
Ricci MOTION -
Barrera SECOND -
Spurgeon AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer Moved to confirm
the aforementioned appointments to
the Orange International Street Fair Board of Directors, term
to expire 12/31/92.Page 4
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CITY COUNCIL MINUTES JANUARY 14, 1992
4.REPORTS FROM COUNCILMEMBERS TAPE 495
4.1 Report from Councilman steiner regarding Child or Parental
Emergency Services (COPES). (C2300.I)
Councilman steiner reported this project is set for a public hearing
on January 21, 1992, for approval of the Development Disposition
Agreement. There were a number of barriers to the successful
completion of this partnership; theses issues were dealt with. One
outstanding issue remained, which is now at an impasse:
environmental indemnification - the indemnification by COPES of the Agency
and the city for environmental liabilities. This means that in
the event that hazardous materials contamination is found on the site
at any time in the future, that was not caused by the Agency,COPES
would want the Agency to be environmentally liable, because COPES
will not assume that risk to themselves.COPES
has written a letter to Councilman steiner dated January 14,formally
withdrawing their request for use of the Queen Anne House for
a group care facility for substance-addicted infants. The
Redevelopment attorney and Staff are absolutely adamant regarding the
requirement for the indemnification. This has not been waived in the
past, and they feel it is not good public policy to waive that
requirement. COPES still believes there is a significant need for a
group care facility of this type, hopefully in the City of Orange,
and he will continue to work with them to have them establish that
facility.
Council had offered it to someone in the community to move it,
restore it for a dollar. The partnership was put together with good
intentions, to solve many issues and problems. Whatever decision is
made on disposition of the home, it should be done quickly. The
house is significant from a historical standpoint, at least from the
exterior.
Mike Alvarez, 360 S. Glassell, expressed support of whatever action
Council may wish to take. The house was moved with no strings
attached, since they would have incurred costs in demolition. He
felt whatever action was taken, it should be done quickly, hopefully
within about 30 days.
Wendy Michelson, 2122 N. Broadway, Santa Ana, spoke on behalf of
COPES. She expressed gratitude to Councilman steiner for offering
the project to COPES. They felt they could not expose COPES to an
unknown and potentially hazardous liability in the future.
Bill Arnopp, Executive Director of COPES, 2025 N. Broadway, Santa
Ana, also expressed thanks to Councilman Steiner and the City Council
for voting for the project and their patience while trying to bring
the project to completion.
Alice Clark, 205 N. pine Street, expressed her feeling that whatever
is done at this point, it should be done expeditiously. .
Page 5
379
CITY
COUNCIL MINUTES JANUARY 14, 1992 4.
REPORTS FROM COUNCILMEMBERS (Continued)T.
J. Clark, 811 E. Chapman Avenue, said the time has come to make a decision.
He recommended the house be demolished immediately and the taxpayers'
money be spent on something else.Councilman
Spurgeon noted there were two issues involved: one being disposition
of the property, the other being disposition of the house.
The Director of Economic Development indicated Staff needed some
direction as to disposition of the lot. Councilman Steiner felt the
public hearing was no longer necessary, since it was to be for consideration
of the Development Disposition Agreement on Queen Anne House.
He asked if Council needed to vote to reaffirm staff's recommendation
that there must be indemnification for this to move forward.
Councilwoman
Coontz felt other avenues could be pursued in the meantime
and Staff could be ready with other alternatives at the time of
the public hearing. She felt Council should be aggressive in pursuing
other alternatives, having them ready, with any legal questions
answered, on a decision as to how the property can be utilized
in the future, and what to do with the house. The house could
be offered first to a citizen of Orange, and then to someone from
another city. It will cost the city to demolish it, so she felt it
would be better to have someone come pick it up and take it somewhere
else to restore it, than paying for demolition.MOTION -
steiner SECOND - Coontz
AYES - steiner, Barrera,
Coontz, Spurgeon ABSENT - Mayor Beyer Moved
to receive and file
the oral report on the Queen Anne House.At the January 21, 1992
public hearing, he would make a motion to set aside the Development Disposition Agreement,
in the absence of any further direction by the Council,
that the Council wish to waive indemnification. Council will then go
to the recommendations by the Staff for a time-certain
decision on the ultimate disposition of the Queen Anne House and
the use of the property.VERBATIM: Councilman steiner made
the following comments:OR1800.0.76)Honorable
Mayor Pro Tem
and Members of the city Council, I would like to take this
opportunity to make some remarks concerning the fiscal condition of the
city of Orange on behalf of the Audit Committee, comprised of myself
and Councilwoman Joanne Coontz.Page 6
sO
CITY COUNCIL MINUTES JANUARY 14, 1992
4. REPORTS FROM COUNCILMEMBERS (Continued)
As you are aware, when the fiscal year 1991-92 budget was adopted
by this body, it was with the understanding that $2.1 million of
our unrestricted reserves would be combined with approximately $900,
000 in salary savings, due to a hiring freeze, in an effort to
mitigate the impact of the recession on City
services.Subsequently, it was learned that, as a result of worsening
economic conditions and a further decline in sale tax revenues and other
fees,our operating deficit would grow by another $2.75
million.To address this problem, the Audit Committee has been working
with Staff to establish priorities for funding, identify
additional reductions in expenses and give direction to staff in terms of
a variety of public policy
issues.Last Tuesday, we were involved in a day-long detailed
and exhaustive process with each Department Head and other Staff to
develop mid-year budget adjustments which we will submit to you
in detail for concurrence and action on January 28, 1992. I can tell
you at this time, however, that we achieved our
objectives without compromising the fiscal health of the City or the level of
services which are being provided
for our citizens.Of course, the Audit Committee, City staff and
many residents and community leaders have been concerned about the
impact of the fraudulent diversion of approximately $7.1
million from our investment portfolio and whether this would
exacerbate our
existing deficit situation.As you are aware, on December 11th, the City of
Orange learned that it was among a number of cities, counties and
other public agencies which had been defrauded in the amount of $7.1
million in a sophisticated scheme contrived by Denman & company,
a company owned and controlled by steven Wymer. This occurred in spite
of the fact that the City believed it was investing in safe,
risk-free U. S.Treasury securities and that its funds were
held by a third-party custodian. Additionally, the
Council's outside, independent auditors obtained verification that, both in 1990 and 1991,
all of the city's funds were in a segregated custodial account
in the City'S name.The city Council took immediate steps
to retain legal counsel that specializes in securities investments
to begin discovering how the misappropriation of the City'S funds occurred.
We now know that the city's funds, which were invested
in October, 1989, were immediately diverted by Denman into Denman accounts, in spite
of the fact that we regularly received interest
and documentation indicating that the funds were in a segregated account in the City
of orange's name with a third-party custodian.
What occurred is now generally known,although there are still aspects
of the case which are under continuing investigation, not only
by the City, but the Securities and Exchange Commission,
United States Postal Inspection Service
and other
381
CITY COUNCIL MINUTES JANUARY 14, 1992
4. REPORTS FROM COUNCILMEMBERS (Continued)
At this point, the Audit Committee recommends that we take further
steps concerning the recovery of the city's funds, along with
ensuring that our investment policies and procedures are
appropriate. We believe that our special counsel, Michael Jeffers,
should perform a legal review of the City's investment policies and
controls and that independent Certified Public Accountants also
review our investment procedures and internal and external controls
to assure the council and the public that the remainder of our
investments are fully protected.
The misappropriation of these funds represents about 6 per cent of
the City'S total overall $115 million investment portfolio. The
remaining City investments are highly diversified in U. S. government
securities and other high-quality investments. Councilwoman
Coontz and I want it clearly understood that the City's credit or
cash liquidity is not affected in any way, despite the
fraudulent diversion of our funds. There hasn't been, nor will there be,
any delays in paying bills, including payroll. Additionally,
debt service on bonds will not be affected in any by these
events.The Audit committee also wants to emphasize that the City has
over 16.2 million in unallocated, general purpose reserves, including $
5 million needed for cash flow purposes, and other significant
reserves for designated purposes. The impact on the City'S general
purpose reserves if the $7.1 million is not recovered will be about $1.
66 million. The balance would then be spread to the other
reserve accounts on a pro-
rata basis.Finally, councilwoman Coontz and I feel that the City
and our attorneys should continue to work with other cities
and other agencies to recover our investment to the point
of initiating litigation,
if necessary."Councilwoman Coontz commented that the Audit Committee
is continuing in this venture, beyond the report which will be made at the
end of the month. They will be continuing at the level of
inspection and discussion with Staff to get ready for next year's
budget. She doesn't feel we will be out of the current
economic situation immediately, and they are willing as Councilmembers to put
as much time in it
as needed.
J82
CITY COUNCIL MINUTES JANUARY 14, 1992
5.REPORTS FROM BOARDS. COMMITTEES AND COMMISSIONS TAPE 1644
5.1 Recommendation to disband the following inactive committee:
Headstart Board of Trustees ((OR1800.0.3.7)
MOTION - Coontz SECOND -
Spurgeon AYES - Steiner,
Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer
Moved to disband the
Headstart Board of Trustees.5.2 Reappointment of
Mayor Pro Tem Barrera to the Board of Trustees of the Orange
County Vector Control District, for a term ending 12/31/93. (
OR1800.0.3.20)MOTION - Spurgeon SECOND - Coontz
AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT -
Mayor Beyer Moved to confirm the
reappointment of Mayor Pro
Tem Barrera to the Board of Trustees of the Orange County Vector
Control District, for a term ending 12/31/93.6. ADMINISTRATIVE REPORTS
7. REPORTS FROM CITY MANAGER
8.LEGAL AFFAIRS
TAPE 1691 8.1 ORDINANCE
NO. 26-91 An Ordinance
of the city Council of
the City of Orange levying special taxes within the City of Orange
Community Facilities District No. 91-2 (Serrano Heights Public Improvements). (
T1100.0.2 No. 91-2)MOTION - steiner SECOND - Coontz AYES -
Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor
Beyer That Ordinance No. 26-91
have second reading waived
and be adopted and same was passed and adopted by the
preceding vote.Page 9
383
CITY COUNCIL MINUTES JANUARY 14, 1992
8. LEGAL AFFAIRS (Continued)
8.2 ORDINANCE NO. 25-
91 An Ordinance of the City Council of the City of Orange adding
certain speed limits to Section 10.14.050 of the Orange Municipal
Code.S4000.S.3.
4)MOTION - Coontz
SECOND - Spurgeon AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer That Ordinance No.
25-91 have first reading waived same was set for second reading
by the preceding vote.8.3
RESOLUTION NO. 7926 A Resolution
of the City Council of the City of Orange, California,supporting designation
of the county Health Care Agency as the Orange County Local
Enforcement Agency as required by the California Integrated Waste
Management Act of 1989. (OC1300.0)MOTION SECOND
AYES
ABSENT
Barrera
steiner
Steiner, Barrera,
Mayor Beyer
Coontz, Spurgeon That
Resolution No. 7926
as introduced
be adopted and same was passed and adopted by the preceding vote.
8.4 RESOLUTION NO. 7927 A
Resolution of the city Council
of the City of Orange approving a transfer of ownerShip interests in American
Cablevision of Orange,pursuant to the City's cable
television franchise. (F1100.0)MOTION - steiner SECOND - Barrera AYES - steiner,
Barrera, Coontz ABSTAINED -
Spurgeon ABSENT - Mayor
Beyer That Resolution No. 7927
as introduced be
adopted and same was
passed and adopted by the preceding vote.Page 10
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CITY COUNCIL MINUTES JANUARY 14, 1992
8. LEGAL AFFAIRS (Continued)
8.5 RESOLUTION NO. 7929
A Resolution of the City Council of the City of Orange approving Lot
Line Adjustment LL 91-10, adjusting a lot line of certain
real property situated at 1660 and 1678 Hunters Way.
Owners:Parcel 1 - William L. Shipley & Nancy D. Presho
Parcel 2 - Frank M. Calta & Angela R. Calta (C2500.M.16.1 No.LL
91-10)
MOTION
SECOND
AYES
ABSENT
Steiner Barrera
Steiner, Barrera,
Mayor Beyer Coontz,
Spurgeon That Resolution
No. 7929
as introduced be adopted and same was passed and adopted by the
preceding vote.8.6 RESOLUTION NO.
7932 A Resolution of the
City Council of the City of Orange setting the time and place for
a pUblic hearing to consider the designation and adoption of an Underground
Utility District requiring the removal of poles, overhead wires and
associated structures within that area of the city generally located
on City Drive from Route 22 freeway to 2,000 feet north,
as is more particularly described in Exhibit "A"attached hereto and on
that certain map attached hereto as Exhibit B", and on file
in the Office of the City Clerk and the Department of Public Works of
the city of Orange. (C2500.M.13)MOTION - Spurgeon SECOND - Barrera
AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT -
Mayor Beyer That Resolution No. 7932
as introduced 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 TAPE 1-2022 10.1
Downzoninq - Olive Street:Presentation by
T. J. Clark regarding down zoning
of 300 block, North Olive Street from R-4 to R-2
in 1990. (Z1500.0 No. 1127-90-A)Mr. Clark, 811 E.
Chapman Avenue, reported that in May, 1973 he and his wife purchased property
at 341 N. Olive Street. At the time, it was zoned R-4.
The downzoning from R-4 to R-2 put the property in financial
jeopardy. It makes the property non-conforming, which
prevents them from securing a loan of true value.
0,
r
Page 11
CITY COUNCIL MINUTES JANUARY 14, 1992
385
10. ORAL PRESENTATIONS (Continued)
He presented statements from property owners in the 300 block of
Olive Street and several on West Palm who claim they did not receive
any notification of downzoning taking place. He did not understand
why they were not notified of this zoning change or any of the
hearings on it. They are requesting that the original R-4 zoning
be reinstated. Council directed Staff to report back on this matter
on January 28, 1992, including all forms of notification, the
featured articles in the newspaper, etc. Staff provided some information,
but indicated there was not sufficient time to completely research
the matter. Council wanted more information, including an oral
request,an indication of the number of meetings that were held prior to
the public hearings. Councilwoman Coontz felt this was needed,
because there was notification of consultants being hired, everything
that was
involved.Leaf
Blowers:Frank Coxe, 19142 Glen Arran Lane, addressed the Council
regarding leaf blowers. Councilwoman Coontz commented that she had received
a letter from Mr. Coxe in December which she forwarded to Planning
for assistance. She did not receive a response back from them, so
she asked Mr. Coxe for a copy of the letter and told him she would
pursue it immediately. She felt he was probably disappointed not to
receive a response from Staff and this is why he is before the Council.
He feels the noise levels are dangerous to the hearing of the
general public. He is requesting Council consider an amendment to the
Orange Municipal Code to prohibit leaf blowers, which are
currently exempted. The problem has escalated greatly since the
water shortage. Councilwoman Coontz mentioned one of the reasons the
noise is so great is they remove the mufflers in the false belief
they won't be using as much gas. He feels they also contribute
to pollution. Council referred Mr. Coxe to Staff to see if
something can be done. (R1200.
0)Staff
Appointments:Bob Bennyhoff, 10642 Morada Drive, asked if Joel Wright had
been appointed Water Manager to succeed John Fonley. He was upset
because the press and the public is having a hard time finding things
out.The Fire Chief was appointed December 17th, and there has been
no formal announcement. The people of Orange have a right to know
what is happening. There should be better communication.
Councilwoman Coontz agreed and commented that this Council feels
that disinformation or no information from City Hall is not a positive
in today's society. The information should be ready to go the
moment anything occurs. He complimented the Audit Committee for having
the good sense to tell the people what is going on with their money.
One of the best ways to prevent rumors is to tell people what you
can.Page
3fl6
CITY COUNCIL MINUTES JANUARY 14, 1992
10. ORAL PRESENTATIONS (Continued)
Leaf Blowers:
Carol Walters, 534 N. Shaffer, mentioned that leaf blowers are a
problem in their neighborhood with the gardeners at Chapman
University. The mess is blown into the street and not cleaned up.
She has complained, but nothing has been done. Councilman Spurgeon
will take the matter up with the committee that discusses problems
with Chapman.
Traffic Complaint:
Mrs. Walters is also concerned about the traffic in front of her
house. She will be unable to attend the 7:00 p.m. session when
Council considers the parking on Collins/Shaffer and Cambridge. She
thinks putting in a light would be a big mistake.
outside Leqal Consultants:
Mrs. Walters thinks it is a shame not to fill Police positions left
available by attrition. She does not understand why the City is
paying four City Attorneys and they still hire outside legal help.
She feels the money would be better spent on Police Officer
salaries.
Aqenda Procedure:
Councilwoman Coontz asked for clarification on the procedure for a
citizen or a group of citizens to get on the Council agenda. She
asked the City Manager's office for a procedure on this. The City
Manager indicated he would follow up on this request.
11. RECESS
MOTION - Spurgeon SECOND -
steiner AYES - Steiner,
Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer
The City Council moved
to recess at 4:40 p.m. to a Closed Session for the purposes listed below.
The city Attorney reported that items d.and f. would not
be discussed in the Closed Session.a. To confer with
its Attorney regarding pending litigation pursuant to Government Code
section 54956.9(a), to wit:Maver et ale vs.
Citv of Oranqe et al., Orange County Superior Court Case No.
58 55 20.Page 13
CITY COUNCIL MINUTES JANUARY 14, 1992
387
11. RECESS (Continued)
b. To meet with and give instructions to its Negotiator
regarding real property acquisition pursuant to Government
code Section 54956.8
c. To confer with its attorney to decide whether to initiate
litigation pursuant to Government Code section 54956.9(c).
d. To meet and give direction to its authorized representative
regarding labor relations matters pursuant to Government Code
Section 54957.6.
e. To confer with its attorney regarding potential litigation
pursuant to Government Code section 54956.9(b) (1).
f. To consider and take possible action upon personnel matters
pursuant to Government Code Section 54957.
g. 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.
7:00 P.M. SESSION
12.INVOCATION - Furman Roberts, former City Attorney 12.
1 PLEDGE OF ALLEGIANCE TO THE FLAG 12.
2 ANNOUNCEMENTS 12.
3 INTRODUCTIONS 12.
4 PROCLAMATIONS 12.
5 PRESENTATIONS Rich
Alarcon, President of the Orange City Firefighters, presented a check
from the Orange Fire Dept to the Muscular Dystrophy Association Carla
Anderson, Program Coordinator) from the first annual City of Orange "
Fill the Boot" for "Jerry's Kids". (C2500.H)Page
14
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CITY COUNCIL MINUTES JANUARY 14, 1992
13. PUBLIC HEARINGS
13.1 APPEAL NO. 377. CONDITIONAL USE PERMIT NO. 1850-90.
MAYOR BEYER: (A4000.0 No. 377) TAPE
1-3190 Time set for a public hearing on petition by Mayor Beyer
to appeal the decision of the Zoning Administrator on June 14, 1990
to approve Conditional Use Permit 1850-90, applicant, Thrifty
oil company, which will allow the renovation and conversion of
an existing service station to be used as a mini-market and to allow
the retail sale of beer and wine in conjunction with the sale
of motor fuel. Subject property is classified C-
P (Commercial-Professional), with a general plan land use designation of
General Commercial. It is located at 'the northwest corner of Katella
Avenue and cambridge street (825 E.Katella Avenue). (This item
was continued from 11/12/91.This project is
categorically exempt from environmental
review per CEQA Guidelines, section 15301.THE APPELLANT
STATES THE FOLLOWING REASONS FOR APPEAL:The Council in the past has
expressed concerns regarding the sale of beer and wine in conjunction with
the sale of motor vehicle fuel.Staff has already been
directed to draft an ordinance amendment,which would enable the City council to
be the final approval body for such items. This application
merits review by the City Council."The City Attorney reported the
Orange County Superior Court, in the case called Thriftv oil vs. citv
of Oranqe, ordered the annulment of the City Council's former decision
in Resolution No. 7698 and ordered the city Council to hold a
de novo hearing regarding the application on this CUP. Only the record
and the testimony presented tonight is to be considered. No evidence
from a former hearing, including the minutes of the September, 1990
hearing and the resolution, should be be considered in the
Council's determination. That prior decision
has been voided by the court.There are two matters that the
Council should consider: first is the renovation and conversion of an
existing service station to be used as a mini-market, and secondly,
the allowance of the retail sale
of beer and wine at that location.The Manager
of CUrrent Planning reported the Applicant originally requested a
Zoning Administrator Conditional Use Permit to allow renovation and conversion of
an existing service station to include a mini-mart and an additional
request to permit the sale of beer and wine
at this location. The Zoning Administrator approved these requests, with
a number of conditions. Subsequent to the zoning Administrator's approval,
Mayor Beyer appealed this item to the City Council. On September
25, 1990, the Council upheld the appeal, whic;'in effect denied the
request and listed a number of reasons, which are included in the
Staff report. In an effort to overturn the Council denial,
the Applicant petitioned
the court
CITY COUNCIL MINUTES JANUARY 14, 1992
389
13. PUBLIC HEARINGS (Continued)
The court did, however, say there were two issues brought up in the
previous hearing that offered substantial evidence in support of the
denial. First, the site continues to be located along a route
heavily traveled by school children walking to and from schools.
Second, there exists a total of 21 sites within a four-block
area,including 8 off-sale and 13 on-sale sites permitting
the sale of alcoholic beverages, which is an opinion that this
an adequate number of outlets for an area with school children
and homes. Staff presented maps of the schools in the area and the
district covered
by these schools.Additionally, Staff discussed this with the
school Crossing Guard located at Katella and Cambridge to determine the
numbers of school children traversing this area. Children
from California Elementary,Yorba Middle, Orange High and Taft Elementary
Schools traverse the area
north and south.The C-P zone does not extend on both sides of Katella.
It is on the north side of Katella and further east from the
site. It extends on the entire south side of Katella for 3 blocks
in both directions and on the north side, the only C-P zone is at the
subject site and for a few businesses about 200 feet
further west. The remaining property around the subject is R-3 until it
goes further west to Katella and Glassell, which is a C-1
zone. The general flavor north of Katella is far more high
density
residential and on the south C-P commercial.The site plan went
to the Environmental Review Board prior to going to
the Zoning Administrator for their recommendation. The mini-mart
portion of this application was consistent and the Environmental
Review Board recommended approval of that portion of the application.
There are a number of conditions listed with the original
staff report. If Council approves the
use, he recommends adopting all the conditions of approval.
Councilwoman Coontz asked the connection between the number of elementary schools and
the sale of beer and wine. The discussion at the
original hearing was about the proximity of alcohol dispensing activities
and the numerous children that traverse the street. The
potential for conflicts between consumption of alcohol and
the children crossing the streets was a supreme
concern.MAYOR PRO TEM BARRERA OPENED THE PUBLIC
HEARING.Joshua Kaplan, attorney representing the Applicant Thrifty oil Company, referred
to a memorandum filed with the City Clerk, along with
a petition containing 790 signatures in support of this application.
He indicated he had a petition containing an additional 715 signatures,
for a total of
approximately 1,
39 0
CITY COUNCIL MINUTES JANUARY 14, 1992
13. PUBLIC HEARINGS (Continued)
The decision of the Zoning Administrator in June of 1990, which held
in favor of this application, should be considered, and the file.
Council should only disregard the previous City Council hearing on
the matter. About 50 of the signatures are from residential
occupants in the area, and about 25 from local businesses. The
remainder of the signatures are from patrons who signed as they came
to use the facility.
The Superior Court held there were only two previous findings that
were supported by any adequate evidence. These were mentioned by
Staff: the presence of school children, and the presence of other
licensed locations.
He opined that while the Court held there may have been two findings
for which this Council had some evidence, those findings were not
sufficient to deny the application. In the Applicant's memorandum,
conditions 3, 4, 6 and 7 are voluntarily proposed by the Applicant,
which will preclude the attractiveness of this site to any minors.
There is every reasonable precaution taken by the Applicant to
preclude any impact upon any minors in the vicinity.
Secondly, the number of alcohol establishments in the area is not a
basis for disqualification of this application. This application is
for an off-sale license. This is substantially the only location
on the north side of Katella that is contemplated to be a
unique operation. It would be more convenient for the residential users
not to have to cross Katella to obtain beer or wine. The Code speaks
of undue concentration of licenses in the area. This is defined
by state Code. Thrifty intends this to be a modern version of a
general store. They will offer a full range of products. The beer and
wine will constitute less than 3% of the gross display floor area
and would consititute a small percentage of the anticipated volume
of sales. In order to reach profitability for this operation, the
beer and wine sales are
necessary.Thrifty operates about 150 locations in Southern California, at
which they sell motor fuel products and alcoholic beverages. The zone
C-P specifically authorizes motor vehicle fuel and off-
sale
beer and wine.Council asked the City Attorney about undue
concentration. He opined the State Dept. of Alcoholic Beverage Control does not
have he final authority in telling a City Council they
cannot consider sound principles
of land use.MAYOR PRO TEM BARRERA OPENED
THE PUBLIC HEARING.The following people spoke in favor
of the project:Linda carlson,
1775 N. Cambridge.They made
the following points:It would be convenient to have a store like this in
the area.
CITY COUNCIL MINUTES JANUARY 14, 1992
391
13. PUBLIC HEARINGS (Continued)
The following people spoke in opposition to the project:
Barbara DeNiro, 1118 E. Adams.
They made the following points:
safety is the relationship of the school children in the area to the
sale of beer and wine at this location.Katella
is a super street.There are
many apartments in the area, with children.It is already
an over-impacted area, with many young people using the crosswalk.It
can create
a hangout and gathering place for individuals,create more trash and
encourage vandalism.There is a noticeable
traffic hazard, created by vehicles trying to cross over to enter
and exit the facility off Cambridge, further complicated by the curve in
the road to the north of Cambridge.Directly across the street is
a service station and a liquor store.It seems counter-productive to
tell
people not to drink and drive,and then advocate the sale of
alcohol with motor vehicle fuel.Since this is an appeal by
Mayor Beyer, Council should postpone the decision on this item until he
returns.Mr. Kaplan indicated he disagrees with the
City Attorney on whether the Council has the right to legislate
locally on this issue.However, if Council could make the decision
on undue concentration,he feels they should use the parameters
defined by state law. He does not feel there is enough evidence
to support this.MAYOR PRO TEM BARRERA CLOSED THE PUBLIC
HEARING.Councilman Steiner asked for clarification on hours
of operation.The business would be open for 24
hours, but alcohol would be sold from 6:00 a.m. to 2:
00 a.m. The Applicant was willing to consider limiting further the hours beer and wine
could be purchased. Council indicated the document presented by the Applicant
showed 1:00 a.m. to terminate the sale of beer and wine.
MOTION - Coontz SECOND - Spurgeon AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT -
Mayor Beyer Moved
to accept the Staff findings that
the project is exempt
from environmental review per CEQA guidelines.MOTION - Spurgeon SECOND - Coontz AYES - Steiner,
Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Moved to
allow the renovation
and conversion of the existing service
station to be used
as a mini market, subject to the conditions in the Staff
report.Page 18
392
CITY COUNCIL MINUTES JANUARY 14, 1992
13.PUBLIC HEARINGS (Continued)
MOTION
SECOND
AYES
ABSENT
steiner Spurgeon
Steiner,
Barrera, Coontz, spurgeon Mayor Beyer
Moved to deny
the appeal and support the Zoning Administrator's approval of Conditional
Use Permit 1850-90, subject to Staff conditions and
those proposed by the Applicant. Sale of alcohol to end at
1:00 a.m. Employees selling beer and wine need to be over 21 years of
age.13.2
GENERAL PLAN AMENDMENT 3-91-A. ZONE CHANGE 1134-91. COUNTY
OF ORANGE: (C2300.E GPA 3-91)
TAPE 1-5830 Time set for a public hearing on petition by the County
of Orange to consider General Plan Amendment 3-91-A
to change the land use designation of property from Open
Space/Parks to Low Density Residential, 2 to 6
dwelling units per acre; and Zone Change 1134-91 to
reclassify property from R-O (Recreation -Open Space) District to
Rl-8 (Residential, Single Family, minimum lot size 8,000 sq. ft.)
the western third portion of the site,approximately
ten acres; and R1-10 (Residential, Single Family,minimum lot size 10,
000 sq. ft.), the eastern
two-thirds portion of the site, approximately twenty acres.The project
site is approximately 30 acres in size, undeveloped, and is located
south of
the intersection of Rancho Santiago Boulevard and Hewes Street.
NOTE:
Negative Declaration 1376-91 has been prepared for this project.The City
Manager reported not much progress has been made in meeting
with the Environmental Management Agency to resolve some issues Staff is
very concerned about. Before this property would be approved for urban uses,
he asked that Council direct him to meet with Supervisor Vasquez to see
if an agreement can be reached, before this area is removed from park
and open space. There is a need for ball and soccer
fields in this area. This has been accomplished on other
County regional facilities by the City and County working together.Perhaps
other County properties in close proximity can be used. The County has
deed restrictions on Yorba Park, which the City would like them
to remove. The city also needs a branch library site.The
Director of Community Development reported this site has been on the County's Master
Plan of Parks since 1963 and the city's General Plan as an
open space area since 1973. In December of 1990,
the Board of supervisors amended their recreation element to identify
parcels which are no longer
considered feasible
393
CITY COUNCIL MINUTES JANUARY 14, 1992
13. PUBLIC HEARINGS (Continued)
The County is in the process of declaring the site surplus. Staff is
concerned about removing this as a future open space resource to the
community. The value of the land, when it is disposed of by the
County, is to be reused as open space resource in some other location
within the County of Orange. The City staff wants to make sure that
open space is replace in the Orange community, rather than another
area of the County.
The County is discussing possible acquisition of the Barham Ranch
area, east of the Villa Park Dam. The Planning Commission heard this
item on October 21, 1991 and has recommended approval of the General
Plan Amendment and Zone Change.
MAYOR PRO TEM BARRERA OPENED THE PUBLIC HEARING.
Bob Fisher, Director of Harbors, Beaches and Parks for the county of
Orange, spoke in favor of the application. He reported the County is
negotiating with the Orange Unified School District and the Serrano
Irrigation District to exchange these 30 acres for about 560 acres of
the Barham Ranch, which those two districts own. This zone change is
holding up the negotiations, which would establish what the potential
uses of the property are. This proposal is acceptable and supported
by the residents in the area.
Bob Bennyhoff, 10642 Morada Drive, suggested Council approve the zone
change, subject to the land swap being completed. The City might be
able to get a golf course out of the deal.
Councilwoman Coontz commented the City has been trying to work with
the Orange Unified School District on land-use issues for about
10 years and have gotten absolutely
nowhere.The city Manager indicated staff had no intent to kill this
project.The City is about to make a 3D-acre parcel worth millions by
the zone change. The County may have other properties which
would be acceptable to the community for ball and soccer fields. It
may not be on
this property.Councilman steiner commented that negotiation is a
process that involves all the parties working together to
resolve something.Council feels these negotiations are often one-
sided when dealing with the County and the school district. The concessions
the City is asking for are not unreasonable, or that difficult for
the
County to consider.Councilwoman Coontz commented the approval should not be
tied to the approval of a golf course. The City of
Orange is disenfranchised,because we have two Supervisors representing Orange.
When trying to talk to one or the other, they look at the map to see
which end of the City is being discussed and are relegated
to discussing the problem with the one whose jurisdiction it is,
which makes it difficult to accomplish anything
at that
394
CITY COUNCIL MINUTES JANUARY 14, 1992
13.2 PUBLIC HEARINGS (Continued)
The following people also spoke in favor of the project:
Shirley Grindle, 19051 Glen Arran.
Stevan Sydlik, 10622 Rancho Santiago Blvd.
They made the following points:
The residents are afraid this property will be put up for sale to the
highest bidder, probably a developer.The
neighbors do not want a lighted soccer field.The City
is now concerned about park space, but Orange has given away all the
park space in the past, with other people on the Council.HEARING REMAINS
OPEN.
MOTION - Coontz SECOND -
Spurgeon AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer Moved to continue
this item to February
11, 1992. City Manager and Councilmembers Coontz and Steiner to continue negotiations
with the County on this item.13.3 GENERAL
PLAN AMENDMENT 2-91.
GROWTH MANAGEMENT ELEMENT. CITY OF ORANGE: (C2300.E GPA 2-
91) TAPE 2-700 The pUblic hearing on
petition by the City of Orange to consider the adoption of a Growth
Management Element as a requirement of the Revised Traffic and Growth
Management Ordinance (Measure M) approved by Orange County voters
on November 6, 1990, thereby qualifying the City of Orange to
be eligible to receive new Measure M transportation revenues has been continued
from December 17, 1991.NOTE: Negative Declaration 1389-
91 has been filed by the Environmental Review Board
on this project.THE PUBLIC HEARING
IS OPEN.The Manager of
Advance Planning reported Staff asked for this item to be continued from
December 17th to allow the representative of the Woodcrest and Tishman
City projects to consider possible side agreements addressing the
Growth Management Element as an alternative to including those
comments in the element itself. The Staff and Mr.Elfend are working
on proposed language agreements on possible exemptions being sought
through side letter agreements on the two projects. Draft #7
is the current version of the element. Staff is recommending the City
Council adopt this draft. The other issues will be resolved
with Mr. Elfend in the near future.Page 21
CITY COUNCIL MINUTES JANUARY 14, 1992 395
13.3 PUBLIC HEARINGS (Continued)
The Director of Public Works reported the Growth Management Element
is the last item required by the City in order to qualify for Measure
M funds. The City will receive about $48 million over the 20-
year life of Measure
M.Frank Elfend felt the Development Agreement for the Serrano
Heights project would be exempted, and the Growth Management Element can
be approved on that basis. They are currently working with Staff on
the Tishman City project, and these items will be brought to Council
in the near
future.Bob Bennyhoff, 10642 Morada Drive, endorsed the immediate passage
of the Growth Management
Element.THERE BEING NO FURTHER SPEAKERS, THE PUBLIC HEARING WAS
CLOSED.MOTION - Coontz
SECOND - steiner AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Moved to accept
the findings of the Environmental Review Board to file Negative Declaration
1389-91.MOTION - Coontz
SECOND - Spurgeon AYES -
Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor Beyer Moved to
approve General Plan Amendment
2-91, Growth Management Element as outlined in Planning
commission Resolution No. PC-42.91.RESOLUTION NO. 7924 A
Resolution of the
city Council of the City of Orange adopting General Plan Amendment 2-
91, the Growth Management Element.MOTION - Coontz SECOND -
Barrera AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer That Resolution No.
7924 as introduced be
adopted and same was passed and adopted by the preceding vote.Page
22
396
CITY COUNCIL MINUTES JANUARY 14, 1992
14. PLANNING AND ENVIRONMENT
14.1 Report from the Director of Public Works regarding the city's
statement of Compliance of Measure M requirements. (Continued from
12/17/91.) (C2300.E GPA 2-
91)MOTION - Coontz
SECOND - steiner AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Moved to receive
and adopt the memorandum dated December 17, 1991 with the seven
conditions included.RESOLUTION NO. 7925
A Resolution of
the City Council of the city of Orange demonstrating compliance with Measure
M, revised traffic improvement and Growth Management ordinance requirement.
MOTION - Coontz SECOND -
Steiner AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer That Resolution No.
7925 as introduced be
adopted and same was passed and adopted by the preceding vote.MOTION -
Barrera SECOND - Spurgeon AYES - Steiner, Barrera,
Coontz, Spurgoen ABSENT -
Mayor Beyer Moved
to appoint Councilmembers Coontz and Steiner
as Council representatives on
the Tishman project.14.2 Request for the installation
of NO STOPPING ANYTIME - TOWAWAY
restrictions to facilitate the installation of traffic signals and left turn lanes
in proximity to the following intersections:1) Collins Ave.
at Shaffer st.2) Collins Ave. at Cambridge st.
Continued from 10/15/91 and
12/10/91.) (S4000.S.3.
7) TAPE 2-1400 The Traffic Engineering Technician reported this item was continued to a
Study Session with the Traffic Commission. The primary issue
is the No Stopping Anytime - Towaway restrictions that are being requested to
facilitate the installation of left turn lanes and traffic signals
in proximity to the intersection of Collins and Shaffer, and
Collins and Cambridge.Page 23
CITY COUNCIL MINUTES JANUARY 14, 1992 397
14. PLANNING AND ENVIRONMENT (Continued)
At the study Session, another option was presented. This option
would retain on-street parking on both Cambridge and Shaffer
street.On Shaffer street, there would be one lane in each direction.
On Cambridge, a left-turn lane needs to be added, which would
entail the acquisition of additional right-of-way on
the Southwest corner, which would facilitate the bike lane, and installation
of a sidewalk on Collins Ave. A separate issue to be
considered is whether the parking restriction on Collins should be extended
to the area between Cleveland and Harwood. The residents of this
area were notified of this meeting to present their concerns.
The proposal does not increase the number of lanes on Collins,
it only
provides for left-turn pockets.The
following people spoke in opposition:Kathleen
Gutierrez, 648 E. Collins Ave.Tom O'
Neill, 870 N. Lynn Drive.Emery
Owens, 608 E. Collins Ave.Julie
Wiseman, 720 E. Collins Ave.Fred
Cannizzaro, 618 E. Collins Ave.Bob
Pike, 495 E. Collins Ave.Mary
Rajeck, 908 N. Cleveland st.
They made the following points:Traffic will increase
if signals are put in.The noise
level will be unbearable.Property
values will decrease.Collins will become like Chapman Avenue, which used
to
be residential.Lack of parking will be a hardship on the
residents.Do not turn Collins into another cross-town
thoroughfare.The severity of accidents will increase, because people will drive
faster.
There will be an increase in pollutants and the residents in the area
will suffer.It
will be very difficult for residents on Collins to leave their driveway.There
are
four schools in the area, and the safety of the children should be considered.
Council should consider
petitions from neighbors in opposition to the project.The pedestrian
crosswalks would
no longer be safe on Collins.The following people spoke in
favor of approval:Hartford Smith, 750 N. pine
st.Bob Bennyhoff, 10642 Morada Drive.
They made the following points:
Pro$Rect has Deen rerouted
and it will increase traffic flow on Collins.Page 24
398
CITY COUNCIL MINUTES JANUARY 14, 1992
14. PLANNING AND ENVIRONMENT (Continued)
The city Traffic Engineer indicated the traffic signals would
regulate speed. The lights would be self-actuated, where
the pedestrian would press a button and would be accommodated
for crossing the street. The Traffic Engineer mentioned that
crosswalks are no longer considered a safety device. They are a
channelizing device to tell pedestrians where to cross a street and the
motorist they can expect pedestrian activity
ahead.MOTION - Coontz
SECOND - Spurgeon AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Moved to approve
the request for NO STOPPING ANYTIME - TOWAWAY restrictions on Collins Avenue
to facilitate the installation of traffic signals and left
turn lanes in proximity to the intersections of Collins Ave. at
Shaffer st. and Collins Ave. at Cambridge st. The area on Collins between
Harwood and Cleveland not to be affected at this time. Authorized the
acquisition of right-of-way on the Southwest corner
of Cambridge and Collins to facilitate the installation of
left-turn lane, bike lane and sidewalk.15.
ORAL PRESENTATIONS Thomas
O'Neill, 870 N. Lynn Drive, addressing the toxic spill incident
in the City. He suggested the Council take a serious look at
the safety and maintenance of the railroad tracks. It could have been
much worse, and should be investigated before a more serious incident
occurs. (C2500.H)16.
ADJOURNMENT MOTION -
steiner SECOND - Barrera
AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT - Mayor Beyer The
city Council adjourned at
10:35 p.m.GENE BEYER MAYOR MAR~2c~
ERK L.
BAR
RA, MAYOR PRO TEM BY:Page 25