01-21-1992 Council MinutesAPPROVED BY CITY COUNCIL ON FEBRUARY 11, 1992.399
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
JANUARY 21, 1992
The City Council of the city of Orange, California convened this 21st
day of January, 1992 at 3:00 p.m. in a Regular Meeting in the council
Chambers, 300 E. Chapman Avenue, Orange, 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 Continued from 1/
14/92)MOTION - Coontz SECOND -
spurgeon AYES - Steiner,
Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer ACTION: Approved.1.
4 PROCLAMATIONS - None 1.
5 PRESENTATIONS/
ANNOUNCEMENTS/INTRODUCTIONS a. Russ Barrios
presented a check in the
amount of $81,038.87 from members of the Orange International Street Fair
Inc., for City services provided at the 1991 International Street
Fair.OR1800.0.60)b. Introduced new Fire Chief,
Ed Rowlett.c.
Introduced new Assistant Fire Chief, Dave Rudat.
d. Introduced new Water Superintendent, Joel wright.Introduced
new Assistant Water Superintendent, Steve smith.Recessed
at 3:30 p.m. to
a
brief reception in their honor, in the Weimer Room.Page 1
400
CITY COUNCIL MINUTES JANUARY 21, 1992
2. CONSENT CALENDAR TAPE 930
2.1 Declaration of city Clerk Marilyn J. Jensen declaring posting
of city Council Agenda of a regular meeting of January 21,
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.
2.2 Request from Chapman University for a temporary suspension of
Permit Parking restrictions on February 13, 1992 (Area A) due
to General Norman Schwarzkopf as a guest speaker.
S4000.S.3.1)
ACTION: Approved.
2.3 Request for Time Limit parking in front of the barber shop at
446 N. Glassell street. (S4000.S.3.1)
ACTION: Approved.
2.4 Request for the installation of an Intersection Vision Zone on
the south side of Palmyra Avenue at Heatherstone street.
S4000.S.3.1)
ACTION: Approved.
2.5 Request for the Installation of Red Curb markings at the
Mobile Ritz Lodge Mobile Home Park at 300 W. Lincoln Avenue.
S4000.S.3.1)
ACTION: Approved.
2.6 Request for the implementation of a Neighborhood Parking
Permit Program on the west side of the 300 block of N. Elm
street. (S4000.S.3.1)
ACTION: Approved.
2.7 Request for the posting of No Parking 10:00 P.M. to 6:00 A.M.
signs on McPherson Road north of Chapman Avenue.
S4000.S.3.1)
ACTION: Approved.
Page 2
401
CITY COUNCIL MINUTES JANUARY 21, 1992
2. CONSENT CALENDAR (Continued)
2.8 Request for the installation of a One-Way stop control
device at the intersection of Hillside Avenue and
Morningside Street. (S4000.S.3.
3)ACTION:
Denied.2.9 Request for the establishment of School Bus stops on White
Oak Ridge at Deep Springs Road; White Oak Ridge at Ford Road;
and Canyon View Avenue at Handy Creek Road/Aspen
street.S4000.S.3.
1)ACTION:
Denied.2.10 Request approval of a one year extension of time for
Tentative Tract Map 14061, located at the southwesterly extension
of Mountain Avenue, south of Mabury Avenue. (T4000.0 No.
14061)2.
11 ACTION:
Approved.Request approval of Program Supplement No. 013; Local Agency -
State Agreement No. 12-5073. (A2100.0 A.
1903)ACTION: Authorized the Mayor and City Clerk to execute
on behalf of the
City.2.12 Authorize the transfer of $8,560.00 from Account
No.500-2031-781200-9931, EI Modena
Roof Repair, to Account 200-2011-424101, Repairs
to Buildings and Fixed Equipment, for reroofing the Edwards
House and
its garage. (C2500.I)ACTION: Approved.2.13 Request for an expenditure of $3,
000.00 from the Asset Seizure Fund 355 for the conversion of
a Police Vehicle to
a Selective
Enforcement Vehicle. (C2500.K)ACTION: Approved.2.14
CLAIM FOR DAMAGES FROM: (C3200.0)I. STELLA GRAY for an
alleged incident occurring
on or about September 14, 1991.2. CAROLE K. POIRIER for
an alleged incident occurring
on or about October 4, 1991.ACTION: Denied claims
and
referred to City Attorney and Adjuster.2.15 Approve rebate of
arbitrage earned on investment of Assessment District 86-1 Bond proceed
in the amount of $200,
000.00.
T1100.0.
02
CITY COUNCIL MINUTES JANUARY 21, 1992
2. CONSENT CALENDAR (Continued)
REMOVED AND HEARD SEPARATELY)
2.16 Request approval to increase the amount the city may invest
with the California Local Agencies Investment Fund to
15,000,000.00 each for the City and Orange Redevelopment
Agency (for a total of $30,000,000.00) and to increase the
limit of investments with the Orange County Investment Fund to
a total of $14,000,000.00. (C2500.F)
The Director of Finance reported the California Investment
Pool, which is run by the State Treasurer, has had limits of
10 million for each of the participants. Recently, they
increased that limit from $10 million to $15 million. The
City Staff evaluated the safety/risk of this pool. It is a
7.7 billion fund with top professionals, run by the state but
a separate pool from state finances. At the present time,
because they have long-term investments, they are paying
a much higher yield than governments. Governments are
yielding 4% plus, while these pools are yielding
6-8%.Council felt this decision should be postponed
until the auditors had completed their work. Council felt
the auditors should evaluate the quality of the City'
s investments.However, the Director of Finance indicated the
auditors will not be evaluating the risk factors of the
City investments.This area is very difficult
to evaluate.MOTION -
steiner SECOND - Spurgeon
AYES - Steiner, Barrera, coontz, Spurgeon ABSENT -
Mayor Beyer ACTION: continued
for 30 days to allow the auditing of our investments to
move forward, as well as the other issues identified by
Councilwoman Coontz. To be agendized for February 25,
1992 Council meeting.Regarding the
audit considered under item 4.1, Councilman steiner mentioned
the Audit Committee considered three CPA firms to
conduct the audit of the Treasury function and investment procedures
and policies for the City and the orange Redevelopment Agency:
Ernst & Young, Peat Marwick, and Deloitte & Touche
in the response to the scope of work that was developed
by the Finance Director. They found two of the proposals responding
appropriately to the request. They are recommending the
lower priced of the firms Peat Marwick,priced at $
24,000.MOTION - Spurgeon
SECOND - Coontz AYES -
Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor Beyer Page 4
403
CITY COUNCIL MINUTES JANUARY 21, 1992
2. CONSENT CALENDAR (Continued)
Item 2.16 was removed and heard separately. All other items were
approved/denied as recommended.
END OF CONSENT CALENDAR
3. REPORTS FROM MAYOR BEYER
4. REPORTS FROM COUNClumMBERS
4.1 Report from Councilmembers Coontz and steiner regarding
approval to engage a CPA firm and a legal firm to perform jointly a
comprehensive audit of the Treasury function of the City with
emphasis on investment procedures and policies. (C2500.F)
Councilwoman Coontz commented that she and Councilman steiner are
members of the Council Audit Selection Committee. Her comments were
as follows:
It is seldom that a city Council gets directly involved in the daily
operations of a City. The role of the City Council is to hire a City
Manager, our Chief Executive Officer, and in turn approve his
recommendations for hiring other key personnel to operate the city on
a day-to-day basis. The City Manager and Departments are
paid well and are expected to handle their jobs with the
expertise befitting their
professional categories.In the situation involving the probable loss of $7
million in investment funds, Councilman steiner and I stepped forward
beyond our roles as Councilmembers and offered our recommendations
when we realized that solutions to the problem were not coming
quickly enough
from Staff.It was Councilman steiner and I who insisted on
the early involvement of outside legal assistance from a firm
specializing in investments. It was Councilman steiner and I who insisted
that we obtain outside professional assistance to determine
what procedures and practices need to be instituted to provide
better taxpayer protection for the city'
s finances.The proposal you have before you was prepared by Staff,
not by Councilman steiner and myself. What the request does not
address is the confusion in our present City Codes and City
policies regarding the duties of the City Treasurer or the protection of the
Treasurer's investment program. Neither is there a clear definition of
the dual role of the City Treasurer, who is both an elected
official making 365.00 a month and a Department Head, making nearly $70,000
a year.
404
CITY COUNCIL MINUTES JANUARY 21, 1992
4. REPORTS FROM COUNClumMBERS (Continued)
As a City Treasurer, under yet another Code, the civil Code of the
state of California, the implication is that the Treasurer makes
independent investment decisions. On the other hand, in the role of
a Department Head, the Treasurer reports to the City Manager and
works directly with the Finance Director. This ambiguity results in
confusion, since few can work for two masters.
My question is, will these consultants recommend revisions to our
City Codes, which will clear up the confusion and provide both a
direct line of responsibility and an oversight? Also, we need
clarification of the present position of City Treasurer, now being
held by our Assistant City Manager, who as an appointed Staff member
is additionally receiving the salary of an elected official.
There has been great public interest in the probable loss of $7
million in investment funds, and I believe it is necessary that I
speak on this issue of the role of the city Treasurer. In the past
few weeks, as I shop in the market and attend community events, I am
approached by members of the public who ask me about the financial
health of the city and the role our treasurer played. I am making
every effort to obtain information from Staff so that the City
Council can evaluate the situation and take its next course of
action."
Councilwoman
would not be
the future.
scope of the
Coontz felt if the questions were not
a full picture of the finances of the
She asked if these questions would be
audit.
answered, there
city of orange for
answered in the
The Director of Finance agreed with her comments, but indicated these
specifications were not included in the proposal for the scope of the
audit of the treasury function. They plan to include the following:
I. Confirm all outstanding investments at 12/31/91 and
reconcile the total to the general ledger.
2. Review documents and agreements supporting existing
investments:
A. CPA - verify numbers and adequacy for record keeping purposes.
B.
Attorney-1)
Review accounts for compliance under California law
as to permissible investments, proper authorization and adequacy of
documentation and recordkeeping.2)
Review investment management accounts and brokerage
accounts for compliance with Federal law.3)
Review all investment account documentation and reporting
procedures for adequacy of cross checks and monitoring procedures.
3.
Review internal and external control procedures and make recommendation
regarding:A.
Transfer and accountability of cash and securities.B.
Segregation and integration of duties.C.
Collection and deposit of cash and securities.Page
6
405
CITY COUNCIL MINUTES JANUARY 21, 1992
4. REPORTS FROM COUNCIumMBERS (continued)
4. Review investment policy for its adequacy and compliance
with regulatory laws.
5. Review for adequacy the reports to Management; i.e. City
Council and city Manager.
6. Submit a report to the city Council on findings and
recommendations.
As far as the duties of the Treasurer and the Ordinances, there is
nothing specifically directed towards clarifying that. Councilwoman
Coontz felt there should be and the contract could be amended to
include that. People want someone to blame, but the tendency is for
everyone to say they had nothing to do with it. That won't solve the
problem. The only way the problem will be solved is to do a review
of the dual role of the Treasurer and straighten it out, so that who
the Treasurer reports to and the line of responsibility and oversight
is very clear. In addition, it is confusing that the Assistant city
Manager, Jim Evans, is acting as the elected Treasurer and someone
else is acting in the other capacity. There is no way to line up the
duties, responsibility and the reporting.
She indicated the codes that refer to this are not readily
available. She asked Staff to research this, and they had difficulty
locating, in the City Clerk's records and those of the City Attorney,
all the components of the City Treasurer's job. It doesn't do any
good to spend the money on an audit and legal assistance if we
haven't straightened out the basic problem. The Director of Finance
mentioned the duties have grown and changed over the years. He
recommended proceeding quickly with some aspects of the audit, in
order to assure everyone of the protection. The Audit committee can
recommend this be added to the audit, either by the auditors
selected, or others. Councilwoman Coontz felt a certain amount of
the work could be done in-
house.Councilman steiner felt the contract should be awarded as
presented.He felt there was merit in the other issues presented, and
there could be an amendment as we move ahead with determining the
internal and external controls to assure the Council that the remainder of
the city's funds are fully
protected.Councilman steiner commented he felt the main problem
was communication to the public did not come quickly enough.
The solutions to the problems were coming quickly from Staff all the
way along. Repeated actions were being taken by the Finance Dept.,
and the city Manager and were being communicated to the Council.
The development of the scope of work was shared with Council by
Ted Schoettger. However, this information was not shared with the
public and city
staff.Councilwoman Coontz felt Council and staff should know what
was happening before the press. In one instance, she
received information from the press, before hearing it from
Staff.Page
406
CITY COUNCIL MINUTES JANUARY 21, 1992
4. REPORTS FROM COUNCInmMBERS (Continued)
Bob Bennyhoff, 10642 Morada Drive, asked what has been happening
since Lorraine Shade resigned. The Asst. City Manager was appointed
City Treasurer, but he does not seem to have much experience in
banking or investments. He presumes the Director of Finance is doing
the job, so he wondered who was making the investments. Councilwoman
Coontz indicated this is exactly what Council is asking.
The City Manager indicated if Council wanted to take action on the
report prepared by the Audit Committee, the City Manager will meet
with the Finance Director and the City Attorney to determine whether
this additional request can be done in-house. They will also
check with the outside auditors on what they would charge as an addendum
to the scope of work being authorized today. Staff indicated the
Fiscal Agent was Lorraine Shade's Deputy. He is making the
investments,with the oversight of the Finance Director. Mayor Pro Tem
thought the City Manager and the Finance Director could do what the
Audit Committee is
requesting.MOTION - Coontz
SECOND - steiner AYES -
Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer Moved to accept
the Staff recommendation to engage KMPG Peat Marwick,CPA's, for
a fee not to exceed $24,000 plus reimbursement for out-of-pocket
expenses and the law firm of Phillips, Haglund, Haddan Jeffers
for a fee not to exceed $5,000 to perform a comprehensive audit
of the Treasury function of the City and the Orange Redevelopment
Agency, with emphasis on investment procedures and policies.
The recommendations and requests made by Councilwoman Coontz
are to be included. These include possible revisions to City Codes
to clear up any confusion and providing a direct line of responsibility
and oversight, as well as clarification of the present position
of City Treasurer. Staff to return to Council by the next Council
meeting with options on having these additional re quests done
in-house or by outside auditors.
5. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS
5.1 Report from the Solid Waste Committee on the Bus Shelter
Program. If accepted, authorize the issuance of a Request for
Proposal for a new Bus Shelter Program incorporating the use of
advertising panels on the shelters. (OR1800.0.34) (S4000.S.3.1.1)
Staff reported if this proposal is accepted, it will save the City
approximately $11,000 - $15,000 per year in maintenance costs. The City
would receive approximately $50,000 or more per year in revenue from
this program. Any advertising deemed unsuitable, at the discretion
of the Council, would be removed within 24 hours.Page
8
407
CITY COUNCIL MINUTES JANUARY 21, 1992
5. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS
council asked how often the shelters would be cleaned. The minimum
Cleaning would be twice a week. city crews are currently cleaning
the shelters once a week. Graffiti would be removed within 24
hours. Damage from accidents is responded to within four hours.
Staff has checked with cities currently using these private shelter
companies, and they have confirmed the response times are actual.
Councilwoman Coontz recommended political signs be prohibited. There
would be a minimum of 30 shelters installed in the City, with 10% of
all advertising reserved for public service announcements.
MOTION - spurgeon SECOND -
Coontz AYES - steiner,
Barrera, Coontz, spurgeon ABSENT - Mayor Beyer
Moved to accept the
report and authorize the issuance of a Request for Proposal for a
new Bus Shelter Program incorporating the use of advertising panels on the
shelters.5.2 a. Reappointment
of Bobbie Druilhet to the Orange county Office of Protocol for
a term to expire January, 1994. (OR1800.0.3.19)MOTION - Barrera SECOND - spurgeon
AYES - steiner, Barrera,
Coontz, spurgeon ABSENT -
Mayor Beyer Moved to confirm the
reappointment of Bobbie Druilhet
to the orange county Office of protocol, term to expire January,
1994.b. Reappointment of Jerry Smith to the Senior
Citizens Monitoring committee for a term to expire January,
1994.OR1800. 0.21.1)MOTION - spurgeon SECOND - Barrera
AYES - steiner, Barrera, Coontz,
spurgeon ABSENT - Mayor
Beyer Moved to
confirm the reappointment of Jerry Smith
to the Senior citizens
Monitoring Committee, term to expire January, 1994.Page 9
408
CITY COUNCIL MINUTES JANUARY 21, 1992
6. ADMINISTRATIVE REPORTS
6.1 Status report on the City'S efforts to comply with the
Environmental Protection Agency's (EPA's) Non Point Discharge
Elimination system (NPDES) Stormwater Runoff Permit Program. (Report
on file in City Clerk's Office.) (OC1300.K)
MOTION - Spurgeon SECOND -
Coontz AYES - steiner,
Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer
Moved to receive and
file report.7. REPORTS FROM THE
CITY MANAGER - None 8.LEGAL AFFAIRS TAPE 55
8.1 RESOLUTION NO. 7938
A Resolution of the City
Council of the city of Orange finally accepting the completion of a
certain public work and improvement;Bid No. 912-05; S.
P. 2973; Inland Constructors; Main Street and La Veta Avenue. (A2100.0
A.1837)MOTION - steiner SECOND - Coontz
AYES - steiner, Barrera,
Coontz, spurgeon ABSENT -
Mayor Beyer That Resolution No. 7938
as introduced be adopted
and same was passed and adopted by the preceding vote.8.2
RESOLUTION NO. 7939 A Resolution of
the City council of the
city of Orange approving the deletion of one Fire Battalion Chief position (#1327),
and granting the reclassification of another Fire Battalion Chief Position (#
5) at Range 515 ($4653-5967) to the classification of
Assistant Fire Chief at Range 545 ($5404-6930) to be
added to Schedule B, Top Management Resolution. (C2500.H)MOTION - Spurgeon SECOND -
Coontz AYES - steiner,
Barrera, Coontz, spurgeon
ABSENT - Mayor Beyer
That Resolution No. 7939 as introduced
be adopted and same
was passed and adopted by the preceding vote.Page 10
CITY COUNCIL MINUTES JANUARY 21, 1992 409
8. LEGAL AFFAIRS (continued)
8.3 RESOLUTION NO. 7933
A Resolution of the City Council of the City of Orange approving the
reclassification of one Engineering Technician 1/11 (Position No.
713), Range 390 ($2495-3199) to Assistant/Associate civil
Engineer,Range 447 ($3315-4251), and the reclassification of
one Engineering Technician I/II (Position No. 91), Range 370 ($2258-
2895), to Senior Administrative Clerk, Range 324 ($l795-
2302), effective January 13,1992, and directing staff to amend the
budget and the position control system to reflect
these changes. (C2500.
M)MOTION - Barrera
SECOND - Coontz AYES - Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor Beyer
That Resolution No. 7933 as introduced be adopted and same was passed
and adopted by the preceding vote.
8.4 RESOLUTION NO. 7935
A Resolution of the City Council of the City of Orange authorizing
the execution of a Public Works Cooperation Agreement with the Orange
Redevelopment Agency relating to Public Improvements (Santa Fe Depot
Specific Plan - Southwest Funding). (A2100.0 A.1904)Transfer
from Fund No. 922-9813-481104-3006 (
Property Acquisition)to Fund No. 922-9813-426700-
3006 (
Other Professional and
Contractual Services)MOTION -
spurgeon SECOND - steiner AYES - steiner, Barrera,
Coontz, Spurgeon ABSENT - Mayor
Beyer That Resolution No. 7935 as introduced be adopted and same was
passed and adopted by the preceding
vote.8.5 RESOLUTION NO.
7936 A Resolution of the City Council of the city of orange
authorizing the execution of a Public Works Cooperation Agreement with the
Orange Redevelopment Agency relating to Public Improvements (Santa Fe
Depot Specific Plan - Northwest Funding). (A2100.0 A.1905)
Appropriated from Fund No. 932-9823-426700-
3006 (Other Professional
and Contractual services)
MOTION - Steiner SECOND -
Spurgeon AYES - Steiner, Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer Page
11
4 10
CITY COUNCIL MINUTES JANUARY 21, 1992
8. LEGAL AFFAIRS (Continued)
That Resolution No. 7936 as introduced be adopted and same was passed
and adopted by the preceding vote.
8.6 RESOLUTION NO. 7937
A Resolution of the City Council of the City of Orange authorizing
the execution of a Public Works Cooperation Agreement with the Orange
Redevelopment Agency Relating to Public Improvements. (A2l00.0 A.1906)
La Veta and Glassell Street Storm Drain - Southwest Project Area.Funds
are appropriated in Southwest Project Area Funds, Account No.920-
9811-
783400-5001.)MOTION -
Coontz SECOND - Spurgeon
AYES - Steiner, Barrera, Coontz, Spurgeon ABSENT -
Mayor Beyer That Resolution
No. 7937 as introduced be adopted and same was passed and adopted
by the preceding vote.8.7
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 - steiner
AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT - Mayor Beyer That
Ordinance No. 25-91
have second reading waived and be adopted and same was passed
and adopted by the preceding vote.8.8 RESOLUTION NO.
7941 A Resolution of the
City Council of the City of Orange expressing appreciation to John Heeks
of the Community Development Department and commending him for
more than eighteen years of loyal and dedicated service. (C2500.G)
MOTION - Coontz SECOND - Spurgeon
AYES - Steiner, Barrera,
Coontz, Spurgeon ABSENT -
Mayor Beyer That Resolution No. 7941
as introduced be adopted
and same was passed and adopted by the preceding vote.Page 12
CITY COUNCIL MINUTES JANUARY 21, 1992
4 11
8. LEGAL AFFAIRS (Continued)
8.9 RESOLUTION NO. 7942
A Resolution of the city council of the city of Orange electing to
exclude amounts earned on the Debt service Fund for the City of
Orange Improvement Bonds AD 86-1 (East Orange) from the
calculation of amounts subject to arbitrage rebate under Internal Revenue
service Code section 148. (C2500.
F)MOTION - spurgeon
SECOND - Barrera AYES -
Steiner, Barrera, Coontz, spurgeon ABSENT - Mayor
Beyer That Resolution No.
7942 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 -
None 11. RECESS MOTION - Steiner
SECOND - Barrera
AYES - steiner, Barrera,
Coontz, spurgeon The
city Council recessed at 5:15
p.m. to a Closed session for the following purposes:a. To confer with its
Attorney regarding
pending litigation pursuant to Government Code Section 54956.9(
a), to wit:Everson vs city of Orange, Orange county
Superior Court Case 63 83 32.b. To confer
with its attorney to
decide whether to initiate litigation pursuant to Government Code section 54956.
9(C).c. To confer with its attorney regarding
potential litigation pursuant to Government Code section 54956.9(
b) (1).d. To consider and take possible action
upon personnel matters pursuant to Government Code Section 54957.
e. 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.Page 13
412
CITY COUNCIL MINUTES JANUARY 21, 1992
7:00 P.M. SESSION
12.
sixth
Faith
INVOCATION - given by Sahar grader
at La Veta Elementary of
Orange.Sattarzadah,
11 years old, a School,
representing the Bahia 12.
1 PLEDGE OF ALLEGIANCE TO THE FLAG 12.
2 ANNOUNCEMENTS - None 12.3
INTRODUCTION - None 12.4 PROCLAMATIONS -
None 12.5 PRESENTATIONS - None
13.PUBLIC HEARINGS 13.1
JOINT PUBLIC HEARING,
DISPOSITION AND DEVELOPMENT AGREEMENT,CHILD OR PARENTAL EMERGENCY SERVICES (
COPES): TAPE 1-3565 The joint public hearing
with the Orange Redevelopment Agency to consider approval of a
Disposition and Development Agreement by the City of orange, Orange
Redevelopment Agency and Child or Parental Emergency Services (COPES) has
been continued from December 10,1991. (C2300.I)Councilman
steiner reported this
issue was scheduled for a public hearing at Council direction
with regard to the COPES' use of the Queen Anne House for
a group care facility. On Tuesday, January 14,1992 at the 3:
00 p.m. meeting, council was informed that the negotiations between the Redevelopment
Agency, the City of Orange and COPES had broken down.
This impasse had to do with environmental indemnification and the inability
of COPES to meet that requirement of the city and
the Redevelopment Agency. Therefore, COPES withdrew its request to use
the Queen Anne House for that purpose. The public hearing is still on
this evening. Further direction was given last Tuesday by the Council
that the Redevelopment Agency come back with a recommendation on the use/
disposition of the Queen Anne House in light of the inability
to conclude an agreement with COPES.The Director of Economic
Development reported COPES has submitted a letter of withdrawal. The
acceptance of the withdrawal letter terminates the public hearing
and the negotiations between the three parties.councilman steiner asked
council
to consider waiving City fees to COPES in the future,
to equal the amount they have already expended with the city, if
they do establish their group care facility in Orange.Page 14
4 13
CITY COUNCIL MINUTES JANUARY 21, 1992
13. PUBLIC HEARINGS (Continued)
MOTION - steiner SECOND -
Coontz AYES - Steiner,
Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer
Moved to accept the
letter of withdrawal from Child or Parental Emergency Services.The Director
of Economic
Development reported on the matter of disposition of the house
and the property. with regard to the house,Staff understands Council's
desire to have it disposed of within 30 days. Staff recommends the
house be advertised for sale to the highest bidder. The deadline
for close of the bids would be 30 days. The removal/relocation
arrangements may take longer than 30 days. If there is
no interest in the purchase of the house,demolition of the structure
is recommended. Council mentioned saving some of the artifacts
of the building, which might have historic significance. That could be
part of the demolition contract.However, this would likely
increase the cost of demolition, because the full salvage value
isn't there and special care would have to be taken to remove certain
items. Immediate demolition is a second alternative.The second question
is
the disposition of the land. This will take more than 30 days,
unless Council wants to return the parcel to the Water Department. The second
option is the purchase by the Redevelopment Agency for development
as affordable housing. Senior housing is recommended, because
of the proximity to the Senior citizens' Center. This choice
offers three alternatives, all of which will have to
be processed in the normal course of business, and will take more than
30 days:1) Develop a Request
For Proposal to private developers.2) Negotiate an agreement
with the Orange Housing Development Corporation for them to
develop the land.3) Resurrect negotiations with
the Orange County Housing Authority for some affordable
housing they might construct on the site.Councilwoman Coontz mentioned
the
preservation of the home had to do with the historic exterior.
Should the house be purchased and moved,this should be a
condition of purchase, but not if the house is demolished. Council asked the
lowest bid, because $1.00 was mentioned before. Staff felt
it best to say the highest bidder.Council felt preference should
be given to bidders locating the house in the City of
Orange.MAYOR PRO TEM BARRERA
OPENED THE PUBLIC HEARING.The following people spoke:
Alice Clark, 205 N.
pine Street.Mike Fogelberg, 288 Nordall.
T. J. Clark, 811
E. Chapman Avenue.Page 15
414
CITY COUNCIL MINUTES JANUARY 21, 1992
13. PUBLIC HEARINGS (Continued)
They made the following points:
It was asked if the return of money spent on fees for non-profit
organizations would become a permanent policy. Councilman steiner
felt each project should be decided on its own merit.
It was asked if the bidding would be open to anyone. Council confirmed
it would be open to any interested party.The
Queen Anne House has cost the City of Orange $25,553.14 to date. When
it was offered for sale previously, there were 25 offers. However,
none were able to find a suitable lot in Old Towne. If
no one took it then, why would someone take it now? It was felt
the house should be demolished immediately to minimize losses.Linda
Boone,
Executive Director of the Orange Housing Development Corporation, 217
E. Chapman Avenue, indicated they are in a position to develop
this property into some high-quality affordable units for the
City of Orange. There are a great deal of funding sources available
for this kind of project at the present time. Everyone seems
to agree that senior housing is the most appropriate for this site.
The OHDC Board of Directors is very cognizant of the fact that when
they do housing, it will be an asset and will fit in with the existing
neighborhood.Councilwoman
Coontz mentioned for the record that she and Councilman Spurgeon
are on the Orange Housing Development Committee, although they
are no longer voting members. The City Attorney confirmed there was
no conflict of interest and they could both vote on this issue.The
Director of Economic Development indicated they would contact any parties
who had expressed an interest in the house in previous years,as
well as publish in trade papers. This would probably take a couple
of weeks to arrange.MOTION
SECOND
AYES
ABSENT
Steiner
Coontz Steiner,
Barrera, Coontz,
Spurgeon Mayor Beyer Moved that
the City Council
and the Orange Redevelopment Agency authorize the sale of the
Queen Anne House to the highest bidder,with first priority being given
to a bidder who will restore the house in terms of its
historic qualities, and an additional priority to a bidder who would
move the home to a location in the City of Orange. The City Clerk to
advertise the bid within 14 days. From that time, there will be
a maximum of 30 days allowed for bidding, at which time if there is
not a successful bidder, the house is to be demolished. If there is a
successful bidder, an additional 30 days will be given to move
the home.Page 16
415
CITY COUNCIL MINUTES JANUARY 21, 1992
13.PUBLIC HEARINGS (Continued)
MOTION
SECOND
AYES
ABSENT
Coontz steiner
Steiner, Barrera,
Coontz, Spurgeon Mayor Beyer Moved
that the City
of Orange and the Orange Redevelopment Agency assist the Orange Housing
Development Corporation in the negotiations for the purchase of
the property from the Water Department and the possible development of affordable
senior housing.Council asked the Director
of Economic Development to keep them apprised regularly on the
status of the property and the house.13.2 PRE-ZONE
CHANGE 1144-91, CITY OF ORANGE:Time set
for a public hearing on petition by the City of Orange to consider Pre-
Zone Change 1144-91 to reclassify 25 incorporated
parcels from the existing County of orange Zoning District of
100E4-20,000 Single Family Residential, minimum lot size 20,000
sq.ft. minimum lot width 100 ft. to the City of Orange zoning
district of R-1-20 Single Family Residential, minimum lot size 20,
000 sq. ft.Subject properties are located east of Rancho
santiago Boulevard and south of Santiago Canyon Road. The majority of
the properties front onto Glen Arran Lane. The pre-zone
request is for annexation purposes (Annexation 395). (
Z1500.0 No. 1144-91)NOTE: This project is categorically
exempt from the provisions of the California Environmental Quality
Act (CEQA) per
State CEQA Guidelines section 15319.Council asked if this proposed annexation
would involve any cost to the City. The Director of Community
Development indicated this was a very difficult question to answer. While there
is an income to be derived for the City from property taxes, there
are also costs to be expended in providing public services.
To every degree possible, it has been the policy of the City Council
to try and minimize those costs. The property owners are willing
to commit to retaining the responsibility of maintaining the private streets
is a large step in minimizing those costs. In this type
of annexation, there is a standardized formula for dispersal of
property tax between the City and County. It is based on the historic
formula for the remainder of the City, as far as the percentage
collected. It would be very similar to what we are
receiving in existing City areas.MAYOR PRO TEM
BARRERA OPENED THE PUBLIC
HEARING.The following people spoke:
Claudia Holloway, 19002 Glen Arran.
Bob Bennyhoff,
41&
CITY COUNCIL MINUTES JANUARY 21, 1992
They made the following points:
Over 90% of the neighborhood supports the annexation to Orange.City
staff came to a neighborhood meeting to answer any questions.There
are
only 2 or 3 households that would not sign the petition in favor ofannexation. These people did not attend the neighborhood meeting.They feel
these
people feel they may lose their rural lifestyle.Had they attended the
meeting they would see this is not true, since Orange has adopted the
same zoning as the County.Their only concern is
that a solution be worked out to either provide trash pickup using a
small truck, due to the sub-standard private street, which cannot
stand the heavy trash truck. Or that they are permitted to
arrange and pay for their own trash pickup.This area is like
Orange Park Acres. There is no intention on the part of the homeowners to
get what downtown Orange has. It fits in with the plan of the
area.Council asked if the trash
service request can be worked out. The Director of Public Works reported
Orange Disposal Service indicated they could make available a
smaller vehicle for pickup in that area.Council asked if the area
was hooked up to sewers. The Director of Public Works indicated part of
the area is under septic tanks and will probably eventually hook up
to sewers, as all of that area is doing, a little at a
time.THERE BEING NO FURTHER SPEAKERS,
MAYOR PRO TEM BARRERA CLOSED THE PUBLIC HEARING.MOTION - Coontz SECOND -
Spurgeon AYES -
Steiner, Barrera, Coontz,
Spurgeon ABSENT - Mayor
Beyer Moved that this project is
categorically exempt from the
provisions of the California Environmental Quality Act.MOTION - Coontz SECOND -
Spurgeon AYES - Steiner, Barrera, Coontz, Spurgeon
ABSENT - Mayor Beyer
Moved to approve
Pre-Zone Change 1144-91 as
outlined in Planning Commission
Resolution No. PC-43-91.Page 18
417
CITY COUNCIL MINUTES JANUARY 21, 1992
13. PUBLIC HEARINGS (continued)
13.3 APPEAL NO. 392, CONDITIONAL USE PERMIT NO. 1941-91,
YOLANDA AND LUIS CASTILLO: TAPE
1-5700 Time set for a public hearing on petition by Yolanda
and Luis Castillo to appeal the decision by the Zoning
Administrator on November 26, 1991 denying Conditional Use Permit 1941-91
to allow an upgrade of an existing off-sale beer and wine
license to an off-sale full alcoholic beverage license. Subject
property is located at 1095 N. Glassell Street. NOTE: This
project is categorically exempt from the provisions of the California
Environmental Quality Act (CEQA) per State CEQA Guidelines, Section
15303. (A4000.0 No. 392)APPELLANTS STATE THE
FOLLOWING REASONS FOR THE APPEAL:We would like to appeal the
decision of the Planning commission based on a misunderstanding. Sitting at
the City Council meeting on specific date and time the hearing was
held at a different location.Due to this, the staff
administration denied our application. At this time we would like to appeal our
application, and would like to have the opportunity
to speak in our behalf."The Director of Community Development
reported the site is currently occupied by a retail building
which includes three businesses: a coin-operated laundry, a takeout
food business, and a market. The market is the
subject of this application. The surrounding properties are R-1-
6, single-family residential to the east, a mobile home park to the
west across Glassell, to the north and south are office
and commercial properties. No change in hours are proposed:currently they are open from 8:
00 a.m. to 12:00 midnight. The
Zoning Administrator denied the application because of undue concentration of off-
sale liquor establishments in the area,
and because the use will detrimentally affect nearby residentially-zoned
properties.Council asked the Police Department for a presentation
on their experience on this property. Police Department Staff indicated their
records since 1988 show 59 calls for service, ranging
from assaults,and drunk-in-publics. In comparison to similar businesses
in the area, the liquor store at Collins and Glassell, has had
approximately 30 events of similar nature. At Glassell and Walnut, they show about
20 incidents. The call for service at that site is a
little higher than the other businesses in the area. Additionally, in the
decoy program, where they attempt to prevent the sale of alcohol to minors
on a city-wide basis, over the past four years they show
sales to minors on August, 1987, August, 1990 and November, 1991. On
the most recent event, the decoy
went to 38 businesses that evening, and 8 businesses actually
sold to that individual.Councilman steiner asked for clarification on
whether the city had the prerogative to make this determination,
rather than the ABC.Police Staff indicated the recommendation comes
from the city, and then the ABC utilizes their
guidelines. The Director
of Community
418
CITY COUNCIL MINUTES JANUARY 21, 1992
13. PUBLIC HEARINGS (Continued)
MAYOR PRO TEM BARRERA OPENED THE PUBLIC HEARING.
The following people spoke in favor of the application:
The Applicant, Luis Castillo, 1095 N. Glassell street.
Ramona Elsempeter, Oakwood Gardens, 1061 Glassell.
David Nunez, 126 E. Quincy.
Raymond Figueroa III, 1067 N. Orange Steet.
He indicated the liquor license would not change the way he was
handling his business. He indicated a willingness to work with the
community/staff to make
The store is clean, orderly and well-run and customers are treated
with courtesy.
There is no reason to believe the Applicant could not be trusted with
a full liquor license.Entrapment
evidence should not be considered in denying this application.Neighboring
businesses
have helped each other to make sure the neighborhood is kept
up. They don't feel this license will hurt the area.The Applicant
is
trying to make this a versatile store. This is just one more addition
to the whole plan.Councilwoman Coontz mentioned receipt
of several letters and a petition written in opposition
to the application. The letters mention broken bottles on
the sidewalk, backyard trash, leaking and staining substances on the
sidewalk, graffiti, people sitting in neighbors' yards consuming food
and beverage and leaving debris,urinating on nearby bushes,
trees and buildings, increase in gang activity, etc.THERE BEING
NO FURTHER
SPEAKERS, THE PUBLIC HEARING WAS CLOSED.MOTION - Coontz SECOND - steiner
AYES - steiner, Barrera,
Coontz, Spurgeon ABSENT -
Mayor Beyer Moved that this project
is categorically exempt from
the provisions of the California Environmental Quality Act.MOTION - Coontz
SECOND - Spurgeon AYES - Coontz, Spurgeon NOES -
Steiner, Barrera ABSENT -
Mayor Beyer Moved
to deny the appeal,
based on the Zoning
Administrator's decision and
the fact that this will cause deterioration to the bordering land
use and create additional problems for the area in which it
is located.MOTION FAILS.Page 20
419
CITY COUNCIL MINUTES JANUARY 21, 1992
13. PUBLIC HEARINGS (Continued)
The City Attorney indicated the matter is still before the Council.
It is automatically continued for the third vote, when there is a
full Council. CONTINUED TO NO DATE CERTAIN.
14. PLANNING AND ENVIRONMENT - None 15.
REPORTS FROM COUNCInmMBERS - None 16.ORAL
PRESENTATIONS TAPE 2-60 RE-
ZONING ISSUE:
Anne Siebert, 340 S. Olive Street, addressed the Council representing
a committee of 300 neighbors in the Southwest quadrant of Old Towne
Orange. She asked Council to agendize the rezoning of the Soutwest
Quadrant. She presented petitions from property owners in the area,
in favor of re-zoning. Council asked Staff to review the zoning
and make recommendations. Public hearing set for February 25, 1992
by the City Clerk. (Z1500.
0)THEO LACY JAIL
ISSUE:Bob Bennyhoff, 10642 Morada Drive, on behalf of the citizens'
Jail Committee commended the Council for their quick action on the
jail
issue.ZONE
CHANGE:Ralph Zehner, 630 E. Culver, presented a petition for a formal
zone change by the property owners in the Southeast Quadrant. The
city Clerk agendized the matter for public hearing on March 10, 1992
at the direction of
Council.GRAFFITI
PROBLEM:John Whiteriver, 194 S. Pixley Street, addressed
the regarding a problem with graffiti on Almond
Street.the City graffiti hotline and nothing has been
done.
Council He has
called SPEEDING
CARS:Mr. Whiteriver also mentioned a problem with cars making
Almond Street a racetrack. This has become more of a problem since
the Police Department moved its
location.Page
420
CITY COUNCIL MINUTES JANUARY 21, 1992
RECESS
MOTION - Coontz SECOND
Spurgeon AYES -
steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor
Beyer The City Council
recessed to Executive Session at 8:45 p.m.17 . ADJOURNMENT The
City Council
adjourned at 9:40 p.m.GENE BEYER,MAYOR
J1dh~/l~ ~ ~~
MARILYN
J. ENSEN
MC. CITY CLERK ByAx:~{FRED L.
BARRERA,
MAYOR PRO TEM Page 22