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01-28-1992 Council MinutesAPPROVED BY CITY COUNCIL ON FEBRUARY 11, CITY COUNCIL MINUTES OF A REGULAR MEETING 1992. ORANGE, JANUARY 421 CALIFORNIA 28, 1992 The City Council of the City of Orange, California convened this 28th 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 OF ALLEGIANCE TO THE FLAG 2. ROLL CALL PRESENT - steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer 1.3 APPROVAL OF MINUTES Regular Meeting - January 14, 1992 MOTION SECOND AYES ABSENT steiner Coontz Steiner, Barrera,Mayor Beyer Coontz, Spurgeon ACTION: Approved. 1.4 PROCLAMATIONS - None 1. 5 PRESENTATIONS/ ANNOUNCEMENTS/INTRODUCTIONS a. Resolution No. 7941 was presented to John Heeks of the Community Development Department commending him for more than eighteen years of loyal and dedicated service.2. CONSENT CALENDAR TAPE 132 All matters on the Consent Calendar are considered by Council to be routine and will be enacted by one motion unless a Councilmember requests separate action, discussion, or removal of the item.This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing in the following agenda.PUBLIC PARTICIPATION: At the conclusion of the meeting on items listed on this agenda, members of the public may address the City Council on items of interest to the public that are within the subject matter jurisdiction of the City Council.Page 1 422 CITY COUNCIL MINUTES JANUARY 28, 1992 2. CONSENT CALENDAR (Continued) 2.1 Declaration of City Clerk Marilyn J. Jensen declaring posting of City Council Agenda of a regular meeting of January 28, 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 Authorize the Mayor and Director of Finance to draw warrants on City Treasurer in payment of demands. ACTION: Approved. 2.3 Request approval to transfer $35,532.00 from Unappropriated Reserves, Fund 355 (Asset Forfeiture) to Account 355-4051-781200-2300 (Capital Improvements) to fund previously approved security gates and fencing for the Police facility.A2100. 0 A. 1849)ACTION: Approved.2.4 Request approval to transfer $13,650.00 from Fund 355 (Asset Forfeiture) to Account 355-4011- 429400 (Local Training) to pay for the Police Officer Driver Training at the San Bernardino Sheriff' s Emergency Vehicle Operation Center.C2500.K)ACTION: Approved.2.5 Award a computer maintenance agreement, "North Net Communications" to Maintech, Division of Volt Delta, Orange,California, in the amount of $36,500. 00, and waive the formal bid process under OMC 3. 08.14, Account No. 370-9601- 427800 Contractual Services). (A2100.0 A.l907)ACTION: Approved.2.6 Request approval from the Antique Association to waive banner fees for the 15th Annual Antique Faire to be held on February 15, 16 and 17, 1992. (P1300.0.9) Discussion: Council indicated they are recognizing some consideration given in support of this request, however these costs cannot be waived 423 CITY COUNCIL MINUTES JANUARY 28, 1992 2. CONSENT CALENDAR (Continued) 2.7 CLAIM FOR DAMAGES FROM: a. GLORIA YOUNG for an alleged incident occurring on or about November 23, 1991. b. BRYAN LENTZ for an alleged incident occurring on or about October 13, 1991. ACTION: Denied and referred to City Attorney and Adjuster for a report. MOTION - steiner SECOND - Coontz AYES - steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer All items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR TAPE 216 OC1300.J, OR1800.0. 89)3. REPORTS FROM MAYOR BEYER The following comments were given by Mayor pro tem Barrera regarding the Thea Lacy Jail Expansion: "This morning I attended a meeting of the Orange county Board of Supervisors along with councilmembers Coontz and Spurgeon, Bob Bennyhoff representing our citizens Against Jails Committee, our legal Counsel Susan Trager and our city Manager and City Attorney. As you may know, the County is once again considering the feasibility of expanding the size of the Theo Lacy Branch Jail in order to solve its jail overcrOWding problem. This is a proposal that gravely concerns all of us."Councilman Spurgeon, designated by Mayor pro tem Barrera as the official spokesperson for the city reported on the results of the meeting: "The County has launched the process of expanding the Theo Lacy Jail even further than has already been approved. The Board of Supervisors this morning, with Supervisor Roth voting against, voted 4 to 1 to begin the environmental documentation for expanding Theo Lacy Jail to a total capacity of 2228 inmates. This would include maximum security inmates.In addition, the City learned last night, and also today it was confirmed this morning by the Sheriff, that already some maximum maximum security inmates under a new classification system he devised in November', November 6th to be exact, have been going to Theo Lacy.In October, those same inmates could only have been held in the main jail in Santa Ana.) Now they are in Orange, even though the jail as it stands today is not certified by the state to house maximum security inmates.Page 3 424 CITY COUNCIL MINUTES JANUARY 28, 1992 3. REPORTS FROM MAYOR BEYER (Continued) In response to legal counsel, security risk. classification this announcement to the Sheriff admitted The Sheriff refused policy. the Supervisors by our special he was uncomfortable with the to provide us with this written This morning, Councilwoman Coontz and I, along with Mr. Bennyhoff, urged the County, in the most forceful terms to honor the city's agreement with the County, which we entered into to prevent exactly this sort of expansion. That agreement was arrived at less than two years ago, and it was designed to protect the citizens of Orange from the presence of the most dangerous criminals. This morning, the County and the Sheriff turned their back on our agreement. The Board of Supervisors voted 4-1 to endorse a report which will make Theo Lacy Jail the County's main jail. Evidently,agreements with the County are no longer honored.It is a matter of integrity, and I emphasize that; Councilwoman Coontz emphasized that and Bob Bennyhoff made an impassioned plea to the County to honor its word. But the County is turning its back on our agreement with us. We can assure you that this will not happen again. The City is taking the offensive on this front. We are going to do everything in our power to prevent further expansion of the Theo Lacy Jail, and to get the maximum security dregs of society out of our community. This jail is already too big and too risky.In the past ten days we, as a Council have: Reactivated the citizen's Jail Committee; hired a law firm that specializes in environmental law, which guided us in the earlier fights about jail expansion; assigned Sabine Wromar and Vern Jones to coordinate our internal analysis to begin the painstaking assessment of how further expansion of Theo Lacy Jail will interfere with traffic circulation,business and the health and safety of our citizens and our neighbors;begun forming a coalition of our neighboring communities and organizations, such as Anaheim, Garden Grove, Orangewood Home and Tishman; initiated a vocal campaign letting all of the other cities in Orange County know that they can't trust the word of the Board of supervisors.We will use every means available to stop the County to stop this desperate plan, and to stop the expansion of Theo Lacy. We will fight for the city and will see to it that every arm of the city does the same. This is something there is complete consensus on. As more information becomes available through our Executive Sessions, we will continue to update you."Councilwoman Coontz commented she had participated in a petition drive with the citizens committee, when she first was elected to Council. The jail is located at the confluence of three major freeways, along with the Southwest Orange Redevelopment area and the city Shopping Center, which is hoped will become the golden triangle of central Orange County. This will be of great economic benefit to the city. We are disturbed the economic benefit would be tampered with.Page 425 CITY COUNCIL MINUTES JANUARY 28, 1992 3.1 REPORTS FROM MAYOR BEYER (Continued) Because of the agreement with the County, the City has proceeded with major development proposals, which includes Tishman working on a proposal to redeveloped the city Shopping Center area, and IDM Corporation, as well as others. There is a significant investment in infrastructure by the Department of Public Works. A program designed to diversify and solidify the tax increment revenues which are shared by the City and the County. Councilman steiner commented, as Director of the Orangewood Children's Foundation, there are nearly 200 children living as close as 100 feet from Theo Lacy Jail. It is important for people to know that the Chairman of the Board of Directors has gone on record, in writing, to the Board of Supervisors urging them to honor their original commitments, to cap the population at the Theo Lacy Branch Jail and exclude the maximum security prisoners. The charitable dollars cannot be used to litigate this issue. The foundation has to rely on the Council to pursue those measures. Bob Bennyhoff, 10642 Morada Dr., suggested Council adopt a formal resolution requesting from the Sheriff the exact classification used at this time. The Council and Police Chief needs to know this information for security and safety purposes. Mr. Bennyhoff asked if the Library headquarters will be used as a jail warehouse, which is directly adjacent to Orangewood Childrens Home? Councilman steiner indicated it the County Library Headquarters potentially being manned by trustees from Theo Lacy; and yes the original agreement was that the Library Headquarters was to be a buffer between the Children's cottages and the jail wall, which is in the EIR. The City Council complemented Mr. Bennyhoff for all his interest and hard work on this issue. Councilman Spurgeon announced discussions with the City Attorney are ensuing regarding a surplus of beds in San Diego County, and the ability to sent inmates there to alleviate the problem. 4. REPORTS FROM COUNCILMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS - None 6.ADMINISTRATIVE REPORTS TAPE 2074 (C2300.E GPA 2-90-A&B) 6.1 Report on the consideration of request from T. J. Clark, et al, regarding reconsideration of rezoning the 300 Block of North Olive Avenue. (Copy on file in the City Clerk's Office.) The Manager of Advanced Planning indicated the City, approximately one year ago hired Planning and Design Solutions to prepare a land use study for the northwest quadrant of Old Towne addressing a lack of conformance between the General Plan and Zoning for the Cypress Page 5 4 2- 6'.CITY COUNCIL MINUTES JANUARY 28, 1992 6.1 ADMINISTRATIVE REPORTS ( Continued)street area, residential neighborhood and also addressing the change in land use in the railroad depot area from Industrial to Commercial and Residential. Staff was instructed by Council to look at the entire area as a unit.During the Spring of 1990, four public workshops were held, two on the Cypress Street area and two on the Railroad Depot Area. Twenty to thirty property owners and/or residents were present, with the Cypress Street issues drawing a greater number of people. Notices were sent to property owners at addresses listed on the County Assessor's roles. The consultants also hand delivered notices to all residents in the area. The Planning commission also held three study sessions, with notification.The letters and hand written notes submitted by Mr. Clark represent the owners of 12 of the 19 parcels in the 300 block of N. Olive and Lemon Streets. The official notification list for the public hearings before the Planning commission and City Council includes all but one of the properties in the Mr. Clark's group.The existing use of the 19 parcels in the 300 block of North Olive and Lemon Streets is predominantly single family (14) lots, plus 3 duplex lots, one triplex and a 5 unit building. All the lots conform to the R2-6 zoning except for the triplex and 5 unit development.The 5 unit building would be non-conforming even under R4 zoning because the General Plan only allows 3 dwelling units per lot. Out of the 19 parcels being considered, 16 contain contributing historic structures, two of which are duplexes. The existing R2-6 Residential Duplex zoning will allow an additional dwelling unit to be added to the rear portion of the l4 single family home lots while retaining the existing home and low density appearance from the street.Conversely rezoning to R4 will encourage removal of the existing homes (historic structures so that new multi family units can be built.The City Clerk read a faxed message received from Jewel Decker property location, 332 N. Olive Street, requesting the zoning be reinstated and that he be officially notified of Council's future intentions for the district immediately. The fax was signed by Jewel Decker and Carol Peterson.The following people spoke, indicating they had received no official public notice, and requested reconsideration to zone their properties to R-4. Maxine Quirk, 331 N. Olive Gladys Williams, 320 N. Olive st. and 233 W. Palm Ted Williams, 233 W. Palm Royal Lord, 13552 Malena Dr., Tustin, owns property at 349 N. Olive Also, expressed comments regarding the Theo Lacy Jail issue.)The following people requested their comments be placed 427 CITY COUNCIL MINUTES JANUARY 28, 1992 6. ADMINISTRATIVE REPORTS (Continued) Alice Clark, 205 N. pine st., "We also did a lot of research on this. I submit that the original notice supposedly mailed to everyone and probably mailed to everyone said this, "On April 6, 19990, Dear Residents, property owners, business owners, interested citizens: The City of Orange invites you to attend a community workshop on Wednesday, April 18, 1990 at 7:00 P.M. at the Friendly Center, 615 A North Lemon street, to discuss proposed land use changes in the Cypress street area. I would like to state right now that I have lived here since 1952 and never knew that part of the northwest quadrant as the Cypress street area until this came up. I submit that many people living there did not recognize that their street was the Cypress street area, if it wasn't named Cypress street. Not once in this notice is it bounded, just called the Cypress street area. I have no quarrel with your desires to improve the area, I just submit that there were people on that block that never received any notice that they could relate to to this first study session. Some where in the records that I looked at, many times, but recently they have been neated up and put into folders, and I can no longer find it - it said that the people who came to the first workshop were invited back to the second workshop. It's very interesting to me that of the 28 people who attended the first workshop, 10 were members of the Old Towne Preservation Association, obviously very interested in keeping this area nice. Many of the other people there were not owners of property, and I feel that going back to the very beginning, people did not really know what was going on. From that time on from probably before the first workshop, but I'm not sure,there was a petition circulated, I don't know, I can't say or prove that the Old Towne Preservation Association had it circulated; but that' s our feeling. It was circulated to the people who would vote for this down zoning, and it was never presented to these owners who are here today, and those who are not here that signed petitions to think this over again. It was never presented to them at all. They were just left out of the whole process. Once it got started, it just zoomed along without them. In the consultant's report, no it is not there at all, it's in a letter from a preservation member.It tells you how we feel about this too. This letter was received by the City on May 4, 1990. It says, and I don't need to name the name of the writer, but I'll give it to you if you want it. "I also think it is interesting to note that none of the landlords have come forward to oppose or endorse the proposed plans for the area. Well,I wonder why? Those residents that are coming to the study sessions and I think so far there were more workshops than study sessions, and are genuinely concerned about their living conditions are the ones that should be listened to. They are overwhelmingly in favor, and so on and so on.It bothered me that you felt that you did not have a consensus of the neighborhood. Obviously, the City at that time felt they did not have that consensus. If that bothered you, then you should devise some kind of a system to gather that information rather than assuming yourselves that there's not consensus."Page 7 428 CITY COUNCIL MINUTES JANUARY 28, 1992 6. ADMINISTRATIVE REPORTS (Continued) I agree they should have devised some kind of a system, they should have looked at this sign-in sheet from the first workshop and said,Hey, wait a minute, this doesn't look normal, there is something wrong here." Also, when the consultants who they cannot trace the lady that was supposed to have passed these things out door-to-door did she? No body in these addresses we have been working with has ever received any of that kind of notice. I submit it was done most unfairly, not deliberately unfairly on the city's part, but it just got away from them because of the pressure of a special interest group who took over and sort of ran things from then on."T. J. Clark comments are as follows: "In referring to Mr. Jere Murphy's presentation on our request for reconsideration on the down zoning of the 300 block of North Olive, we notice in Mr. McGee's letter, page 2, paragraph 2, that the consultants on this project had hand delivered notices to residents within the Cypress street area as a means of insuring that the residents of the area were aware of the public workshops.All the property owners who have submitted statements, say they were never at any time hand delivered any notices. Several owners outside of Olive street advised me that they never received hand delivered notices. It should only be right that the City staff produce the consultant. Also, Ann Freitas who could not be here today because she broke a foot and is on the couch. She lives at 321 N. Olive,could not possible have received a hand delivered notice because she was in Europe during the month of April and May.Further, in paragraph 7, it is stated, 11 of the 12 property owners received notice of the public hearings according to City records.Upon requesting who the owner was and why, I was told he was not on the list and was not sent a notice. Something appears to me very wrong there. The notices were not received, we presume they were sent registered mail, apparently not though. The City should have some record of this verification some way. Since we do not have proof of the original notice that was supposedly sent to the property owners within the 300 block of North Olive Street, we respectfully request that R-4 zoning be reinstated immediately without any further delay. I further request on the advice of Council, that I want my statement put in the minutes."The City Clerk read and exhibited the city Council notice of public hearing sent to the affected property owners, and property owners within 300 ft. around the area, and verified the list was obtained from the Tax Assessor's parcel list. The City Clerk has kept a record of all returned postcards for any reason. The postcards were not sent certified, but enough postage was paid to ensure the Post Office would return all undeliverable postcards.Council discussion ensued regarding acknowledgment that the legal public hearing notices were mailed according to the purview of the requirements of the Government Code. Reconsideration of the request was considered because of their property rights and values. The Director of Community Services was asked to estimate costs relative to staff time to process a normal zone change application. He indicated approximately $ 429 CITY COUNCIL MINUTES JANUARY 28, 1992 6. ADMINISTRATIVE REPORTS (Continued) The Director of Community Development commented with the assumption that Council would want to reconsider the zoning on the property, the area would include the three one-half block areas Mr. Murphy referred to in his report. Some of the owners within that area, have not given the City authorization to initiate a zone change. It will take the direction of Council to initiate it.MOTION - Coontz SECOND - Barrera AYES - Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved to initiate a public hearing to consider a rezoning from R2 to R4 of the three half-block areas (east and west sides of 300 block of North Olive Street and the east side of the 300 block of North Lemon Street. )The Director of Community Development commented it would take approximately 60 to 90 days for processing.7. REPORTS FROM THE CITY MANAGER TAPE 2336 - C2500.J.1.1)7.1 Report from the City Manager on the Mid-Year Budget Adjustments.The City Manager presented the following report: "In presenting the proposed 1991- 92 Orange City Budget to you last June, I recommended that you balance the 1991-92 general operating budget of $53 million by using $2.1 million in general operating fund reserves. Since last June, the economy has continued its decline. It is now projected that revenues for the fiscal year ending June 30, 1992, will be $2.75 million dollars less than we anticipated seven months ago. To address this growing shortfall, last month, I asked each of the City'S department heads to propose reductions in their departmental budgets for the balance of this fiscal year amounting to 5% of their approved operating appropriations. Departmental responses were shared with the Management Audit Committee, consisting of Councilman steiner and Councilwoman Coontz, in a day long session on January 7th. During that session, Council Members Coontz and Steiner proposed more than $175,000.00 in additional reductions beyond the nearly $1.1 million in reductions recommended by staff. The item before you this afternoon is a proposal developed jointly by department management, the City'S budget team and the Council's Management Audit Committee. I will be briefly reviewing the first part of the proposal, the budget reductions and Councilwoman Coontz and steiner will be presenting the second part of the proposal, a series of policy recommendations to help the City better manage our budget deficit the balance of this fiscal year and into next year. Page 9 430 CITY COUNCIL MINUTES JANUARY 28, 1992 7. REPORTS FROM THE CITY MANAGER (Continued) with respect to the proposed reductions, which are detailed on Attachment B of the Budget report, I would briefly like to highlight just a few of the more important reductions as they affect each department or major activity. City Council - First, on a percentage basis, the Audit Committee has recommended that the city Council's three budget activities be reduced by a greater percentage than any other department. The recommended reductions represent 17% of the appropriations for Council operations, for Community Promotion, and for Public Communications. The recommended reductions in these Council activities totals more than $143,000.00.In the community promotion and special event areas, proposed reductions total more than $110,000.00. six programs are recommended to be postponed or discontinued, City-sponsored parade floats, the printing of new city maps, the Business and Industry Beautification Award Program, the City contribution to the Pattison Youth Leadership Program, the community Pride Program, and the 1992 May Festival. City Manager - Second, in the City Manager's office, with the understanding of the affected employee, one presently filled position is proposed for elimination as of the first of March. The entire City wishes Mark Hamilton well as he leaves City employment to compete for a place on the 1992 U. S. Olympic Kayak Team. Other contemplated personnel moves in the future will serve to further reduce the staffing in the City Manager's Office. The total recommended reduction in the City Manager's office is $31,191.00 or 5% of the departmental operating budget.Data Processing - Third, in the Data Processing area, $10,000.00 in contractor-provided training on specialized software will be eliminated in favor of an in-house training program focusing on standard City software such as Ashton Tate, MUltimate, Microsoft Word and Word for windows, Lotus 1-2-3 and Microsoft Excel and Excel for Windows. The total recommended reduction in Data Processing is 62,000.00. This represents 5% of the departmental operating budget.City Attorney - Fourth, in the City Attorney's office, reductions in appropriations for outside legal counsel for certain tort liability cases can be made as some of this work is brought in-house. The Audit Committee would like to see even more cases brought in-house in the future, as it is in almost all cases less expensive to have City Attorney staff handle cases then to contract for outside Counsel. The total recommended reductions in the city Attorney's office is in excess of $37,000.00. This represents 5% of the Attorney' s departmental budget.city Clerk - Fifth, salary savings from one vacant position,together with reductions in travel and training accounts, represents the recommended reductions for the smallest department in the City,the City Clerk's office. Together, these items represent 7% of the department's operating budget. They total $30, 800.00. 4 31 CITY COUNCIL MINUTES JANUARY 28, 1992 7. REPORTS FROM THE CITY MANAGER (Continued) Finance - Sixth, salary savings from four vacant positions, plus an additional $ 4,500.00 in travel and training reductions, represents 6%of the Finance Department's operating appropriations. The total for the department is more than $110,000.00.General Services - Seventh, one vacant position and almost $6,000 in additional reductions in General Services represents 6% of the department's operating budget. The department total is $47,980.00.community Services - Eighth, in Community Services, there is one vacant position. Proposed reductions and transfers in the department total nearly $280, 000.00. Included in this total are proposed reductions in watering and mowing schedules, and a 10% reduction in the number of street trees scheduled for trimming. Over $17,000.00 in energy savings are anticipated through Shutting of selected lights in selected City parks at 11:00 P.M. Substitution of community Development Block Grant reserve funds for general operating funds earmarked for the Youth Alternative Program is also proposed.Community Services Department reductions and transfers total more than $320,000. 00. This represents 7% of the department's operating appropriations.Personnel - Ninth, more than $56,000.00 in reductions are recommended in the Personnel department. This represents 8% of the department's operating budget. Library - Tenth, there are nine vacant positions in the Library department. Additional vacancies may require a reduction in operating hours for the branch libraries, although policy direction from the City Council would be requested prior to any reduction in operating hours. Recommended appropriation reductions in the department totals nearly $53,000. 00. The includes a $45,000.00 savings in the development of the next portion of the Automated Library System, which will now be installed entirely at the vendor's sole cost and expense. In sum, Library vacancies and reductions total more than $217,000. 00, which represents 7% of the departmental operating budget.Community Development - Eleventh, the annualized savings for vacancies in Community Development, including vacancies in partial Redevelopment Division funded positions in other departments, totals nearly $238,000.00 Outside plan check contracts and outside consultant review of fiscal information on the proposed Irvine Co.development are recommended for reduction due to the slowdown in development and planning activity. Salary savings from vacancies plus appropriations reductions totals over $319, 000.00 for the department. This represents 6% of departmental operating appropriations.Public Works - In DPW there are eleven vacant positions, the most of any department. This is causing operational difficulties in some Page 11 CITY COUNCIL MINUTES JANUARY 28, 1992 432 7. REPORT FROM THE CITY MANAGER (Continued) divisions within the department which must be addressed. Transfers within the department, and from other departments are presently under consideration. More than $40,000.00 in reductions and transfers are recommended in Public Works. When combined with the salary savings from the vacant positions in the department it will exceed its 5% reduction target by a full percentage point. Fire Department - In Fire there are presently two vacant positions.In addition, with the promotions of Ed Rowlett to Chief and Dave Rudat to Assistant Chief, one Battalion Chief position has been eliminated. The annualized cost of these three positions is 274, 106.00. In addition to this salary savings, departmental reductions totaling more than $304,000.00 are proposed.Significantly, reductions other than removing the Brush Rig at station # 7 from service are now currently proposed. By reducing its fiscal year 1991-92 contributions to the Vehicle Replacement Fund, the Fire Department was able to meet its 5% reduction goal. Police Department - In the Police Department there are seven vacancies. The Audit Committee recommends that four administrative personnel be assigned to fill vacant positions in the field. Between the salary savings from these vacant positions and nearly $169,000.00 in departmental appropriation reductions, the Police Department was able to come up with a total savings of $538,000.00 or 3.5% of its operating appropriations.Conclusion - The 1.68 million in annualized salary savings from 40 vacant positions, combined with $1.26 million in departmental and Audit Committee- recommended reductions and transfers, means that the budget deficit is being aggressively addressed. Using current assumptions and projections, and assuming Council approval of the reductions and transfer detailed on Attachment B which has been provided to you, before the current year operating budget will be balanced through the use of approximately $2.6 million in reserves.This excludes the use of any of the $3.6 million in a contested one time rebate of City contributions to the Public Employees Retirement System which was authorized under AB 702. Using current projections and assumptions, the City's General Fund Reserve and Disaster Fund Reserve will stand at about $13.8 million on June 30, 1992, or at the end of this fiscal year.While this is still a respectable level of reserves for a City with a 53 million dollar operating budget, the City needs to position itselffor (1992-93 fiscal year) which could easily, in staff's opinion, be another year of declining revenue growth. The City Manager thanked the City's Management Team, the entire Council and the Audit committee for their many hours of hard work. The following is a report from the Council Audit Committee: Councilwoman Coontz reported, "We've experienced a great deal of support for the budgeting review process, which we initiated. Personnel throughout the city family have given both formal and informal suggestions, which have been very helpful. This is the Page 12 CITY COUNCIL MINUTES JANUARY 28, 1992 433 7. REPORT FROM THE CITY MANAGER (Continued) first time in the recent history of the City, the Council has dealt to the degree that we have into the budgetary process. For the first time, Council is reviewing its own budget, making cuts, and feel by example to keep our own house in order. As a "working Councilwoman," I believe that direct participation is necessary to arrive at fiscally sound policy decisions. Councilman steiner and I offered our services to meet with the City Manager and each Department Head to review their proposals to reduce the FY 1991/92 budget. Through a series of focused interviews, the Department Managers and staff, we were able to achieve an additional 175,559.00 in reductions. We hoped for more, but we can realize more in the next budget session. Many days and hours were spent on this process. The current budget deficit is due to limited revenue growth caused by the recessionary economy and increased demands for local government services. Councilman Steiner and I believe that the Council should provide strong policy direction to staff during the budgetary process. In support of this commitment, we tackled the budget line by line. Our most important task was to develop a new set of policies, to prioritize programs, and to consider new money savingideastoreducetheimpactofnextyear's budget on the taxpayers of Orange. Some of the major policy recommendations of the Management Audit committee are as follows: Place the highest priority for funding on those programs necessary to maintain the health and safety of our citizens. Maintain essential services such as Police and Fire protection, Public Works services including street maintenance and traffic controls and other basic health and safety programs, including code enforcement activities. Direct the City Manager to continue the hiring freeze as necessary and reassign existing City personnel to heavily impacted departments to minimize any disruptions in services. This act alone will save 1.68 million dollars annually. Identify and eliminate unnecessary and obsolete programs, commissions and committees. Establish a policy requiring annual review of all carryover funds. Re-evaluate all City sponsored community programs and assist the organizations in achieving self-sufficiency.Councilman Steiner read the remaining policy recommendations:Minimize out-of- town travel for conferences.Direct staff to utilize an accounting method which identifies all City costs for rendering support to programs and special events, when services are provided by virtually every City Department.Re-evaluate the existing depreciation schedules of the City'S vehicle fleet.Adopt a policy of reducing City expenses for City representation 434 CITY COUNCIL MINUTES JANUARY 28, 1992 7. REPORT FROM THE CITY MANAGER (Continued) Implement a competitive bid process for the selection of outside attorneys, when required to supplement the efforts of our City Attorney's Office. Direct the city Manager to evaluate the policies regarding the use of city vehicles. Councilwoman Coontz reported if the economy does not improve, it may be necessary to consider more drastic budget reduction steps including layoffs or the stabilization (freeze) of salaries. The Audit Committee plans to closely monitor the fiscal health of the city and stay closely involved with setting the Agenda next year. Councilman steiner commented Council would honor the negotiated salary agreements with the employee groups, and want a workforce with good morale and productive. The Management Audit Committee recommends that the Council adopt the policies as a whole set forth in the mid-year budget adjustment report dated January 28, 1992.Carol Walters, 534 N. Shaffer, praised the efforts of the Police Department and does not want them to go to other cities for higher salaries.MOTION - Coontz SECOND - steiner AYES - steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved that Council accept the amended Budget Reduction agenda item,dated January 28, 1992.8.LEGAL AFFAIRS TAPE 3645 8.1 RESOLUTION NO. 7943 A Resolution of the city Council of the City of Orange upholding the recommendation of the Zoning Administrator of the city of Orange and approving a Conditional Use Permit to allow the renovation and conversion of an existing service station to be used as a mini-market and to allow the sale of beer and wine in conjunction with the sale of motor fuel upon property situated at the northwest corner of Katella Avenue and Cambridge Street (825 East Katella Avenue).A4000.0 No. 377)Conditional Use Permit 1850-90, Appeal No. 377, Mayor Beyer MOTION - spurgeon SECOND - steiner AYES - Steiner, Barrera, ABSENT - Mayor Beyer That Resolution No. 7943 as introduced be adopted and same was passed and adopted by the preceding vote.Page 14 CITY COUNCIL MINUTES JANUARY 28, 1992 435 8. LEGAL AFFAIRS (Continued) 8.2 RESOLUTION NO. 7934 A Resolution of the City council of the city of Orange consenting to the admission of the City of Dana Point to the Foothill/Eastern Transportation Corridor Agency. (A2100.0 Al147.C) MOTION - spurgeon SECOND - steiner AYES - steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer That Resolution No. 7934 as introduced be adopted and same was passed and adopted by the preceding vote.8.3 RESOLUTION NO. 7940 A Resolution of the City council of the City of Orange authorizing the Treasurer and the Finance Director to establish a contractual procedure for wire transfers of funds with the Bank of America.C2500.J.1)MOTION - Barrera SECOND - Spurgeon AYES - Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved to continue Resolution No. 7940 to February 11, 1992, as recommended by the Finance Director.9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS corrine Schreck, 443 N. James asked if downzoning property would affect the City losing revenue.The city Manager commented policy information would have to be obtained from the Tax Assessor on the highest and best use.The Street Department Manager remarked Proposition 13 set property values at the sales price of the house, which constitutes the property, not the zoning.Councilwoman Coontz commented there are tremendous costs going to crowded areas in the city with problems that would be beyond any revenues the City would receive. This would be just a small cost to the city, and is not a question that could be answered easily.Page 15 436 CITY COUNCIL MINUTES JANUARY 28, 1992 11. RECESS The City council recessed at 5:10 P.M.to a Closed session for the following purposes: NOTE: The City Attorney requested Item b not be discussed in Closed Session, and added Doyle vs City of Orange to Item Number a. a. To confer with its Attorney regarding pending litigation pursuant to Government Code section 54956.9(a), to wit: Serrano Irrigation District vs. City of Orange, Orange County Superior Court Case No. 61 38 00 Doyle vs the City of Orange, Orange County Superior Court Case No. 54 25 39 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 directions to its authorized representative regarding labor relation 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 - Reverend Eric Kaelberer, Immanuel Lutheran Church 12. 1 PLEDGE OF ALLEGIANCE TO THE FLAG 12. 2 ANNOUNCEMENTS - None 12.3 INTRODUCTION - None 12.4 PROCLAMATIONS None 12.5 PRESENTATIONS None Page 16 437 CITY COUNCIL MINUTES JANUARY 28, 1992 13.PUBLIC HEARINGS TAPE 4021 T4000.0 No. 14544) 13.1 TENTATIVE TRACT MAP 14544, CONDITIONAL USE PERMIT 1721- 88,CLOSURE OF A PORTION OF STATE COLLEGE BOULEVARD, IDM CORPORATION:The public hearing on petition by IDM Corporation to consider Tentative Tract Map 14544 to allow the subdivision of the site into seven parcels of land has been continued from December 17, 1991.Consideration of Conditional Use Permit 1721-88 allowing the modification of the site plan and project phasing as originally approved; a request to close a portion of state College Boulevard in favor of a realignment through the project site; and consider an addendum to Environmental Impact Report 1262- 88, addressing the potential changes in the environmental impacts due to the changes in the project.The project site is located at the intersection of state College Boulevard, The city Drive, Anaheim Boulevard and the Koll Center entrance driveway. site development currently consists of the Orange Drive In Theater located in both the cities of Anaheim ( 5.7 acres)and Orange (12.1 acres). The General Plan designates the site for commercial development at a Floor Area Ratio (FAR) of 1.5 - 2. 5 with a M-1 Light Manufacturing Zoning designation.THE PUBLIC HEARING WAS NOT OPENED.Mayor pro tem Barrera announced a letter was received from IDM Corporation requesting a 30 day continuance. MOTION - Coontz SECOND - steiner AYES - steiner, Barrera, Coontz, spurgeon ABSENT - Mayor Beyer Moved to continue this item to February 25, 1992.C2300. E GPA 4-91) 13.2 GENERAL PLAN AMENDMENT 4-91, PRE-ZONE CHANGE 1140- 91,SOMMERVILLE/MOHLER:Time set for a public hearing on petition by sommerville/Mohler to consider General Plan Amendment 4-91 to change the land use designation from General Commercial to Medium Density Residential 15-24 units per acre); and to consider a pre-zone change from county Commercial to city R-3 (Residential Multiple Family) District.Subject property consists of two parcels of land with a combined area of 2.3 acres located north of the intersection of Lincoln Avenue and Dell street (15631 and 15635 W. Lincoln Avenue).In compliance with the California Environmental Quality Act (CEQA)Negative Declaration 1391-91 has been prepared for this project.NOTE: A letter was received January 14, 1992 from Mr. James Mohler, Applicant, requesting General Plan Amendment 4- 438 CITY COUNCIL MINUTES JANUARY 28, 1992 13.2 PUBLIC HEARINGS (Continued) THE PUBLIC HEARING WAS NOT OPENED. MOTION - steiner SECOND - Spurgeon AYES - Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved to acknowledge the letter from Mr. Mohler, and and withdraw the item from the Agenda, as requested.ZC1500.0 1141-91) 13.3 ZONE CHANGE NO. 1141-91, CONDITIONAL USE PERMIT NO. 1930-91,VARIANCE NO. 1916-91, ROBERT A. SMITH: Time set for a public hearing on petition by Robert A. smith to consider reclassifying a rectangular shaped parcel approximately 2.66 acres in size from C-1 (Limited Business District) to C- 2 (General Business District); Conditional Use Permit 1930-91 to allow the establishment of automotive related businesses in the C-2 Zone,adjacent to a residential district; and Variance No. 1916-91 to allow less than the code required total number of on-site parking spaces,gas pump aisle width, driveway entrance depth, and front yard setback. The project is locatedonthenortheastcorner of Chapman Avenue and Wayfield Streets.In compliance withtheCaliforniaEnvironmentalQualityAct (CEQA)Negative Declaration 1392- 91 has been prepared for this project.NOTE: The City Traffic Commission has requested this item be continued until they have had an opportunity to consider the elimination of left turn restrictions.THE PUBLIC HEARING WAS NOT OPENED.MOTION - Spurgeon SECOND - Coontz AYES - Steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved to continue this item to March 17, 1992.TAPE 4225 (ZC1500.0)13.4 ZONE CHANGE 1142-91, TENTATIVE TRACT MAPS 14549 and 14593,CONDITIONAL USE PERMIT 1932-91, ADMINISTRATIVE ADJUSTMENT 91-26,SOUTHRIDGE DEVELOPMENT COMPANY (TRACY):Time set for a publichearingonpetitionbySouthridgeDevelopmentCompany (Tracy) to consider Tentative Tract Map 14549 to allow the subdivision of 25.6 acres into 105 single family parcels; Tentative Tract Map 14593 to subdivide 71.3 acres into 11 lots, of which 4 lots are for a phased development of condominium units and 7 lots are for 439 CITY COUNCIL MINUTES JANUARY 28, 1992 13.4 PUBLIC HEARINGS (Continued) Zone Change 1142-91 to revise the Development Plan text and map for the Southridge Planned Community Area to accommodate the new alignment for Loma street, to add the land distribution of various densities and product types, and to establish single family detached subdivisions with 5,000 sq. ft. lots, as permitted use in the newly configured Planning Units C and E, and to Pre-Zone approximately 3 acres to PC (Planned Community) District; Conditional Use Permit 1932-91 to allow development of 37 acres with approximately 537 condominium units; and Administrative Adjustment Permit 91-26 to allow the creation of lots around cUl- de-sacs, with lot widths less than the minimum required.The property is an irregularly shaped piece of property,approximately 258.6 acres in size, and located north of Villa Park,south of Anaheim Hills, west of the future extension of Loma street,and east of Meats Avenue.NOTE: Environmental Impact Report 854 was previously approved by Council. MAYOR BARRERA OPENED THE PUBLIC HEARING.The Manager of Current Planning reported on the eastern part of the plan, there was an old alignment of Loma Street that ran through Orange and Anaheim. Subsequent to the approval of the original 1,000 unit development, the alignment of Loma has moved further to the east. This created a no-man' s land between what they had anticipated for development up to Loma, and the new alignment of Loma street.With the realignment of Loma and Via Escola, the subject parcel is cut off from the City of Anaheim, and would be a logical part of the body of the new development.The applicant is proposing to keep the original 1,000 units originally approved on the project, but extend them to take up the area between the old Loma alignment and the new Loma alignment. It is also proposed to change the makeup of the type of produce they are building on the property.The first application is a tract map to take the northerly portion of Via Escola, which was previously zoned for R2-6 (duplex development)or one dwelling unit for every 3,000 sq. ft of lot area. This proposal is to submit a tract that indicates 5,000 sq. ft. lots.Originally it was zoned R- 3, and it is now proposed to rezone to R1-5. There will be less density than what was originally proposed.The 1, 000 units originally proposed will still be retained, but it will be redistributed.In the previous plan, Area B, C and G, Area B was scheduled for Rl-6 development, Area C was R2-6 and Area G was R3. This proposal is to take this area and develop it as a single development area as multiple family. The average density over this entire site is 15 dwelling units to the acres, consistent with the R3. The density ranges from 9.4 440 CITY COUNCIL MINUTES JANUARY 28, 1992 13.4 PUBLIC HEARINGS (Continued) There is a 2.11 acre park site proposed, and a large area, outside of the project area boarders, but under the Edison easements that will be a part of their fuel modification zone and landscaped areas with a trail that connects from the park site to Loma street. The majority of the open space is incorporated in the slope areas surrounding the actual development. Concern was expressed by Councilmembers regarding the 5,000 sq. ft. lots. The Manager of Current Planning commented the 5,000 sq. ft. lots have been discussed with The Irvine Company regarding their projects. Policies did result from these discussions and were incorporated into the East Orange General Plan and were not entirelyincorporatedintothisrequest. staff accepted this request because it is under a PC Text, which is a Planned Community Text. All city departments and the Environmental Review Board have signed off on the plan. Bob Mickelson, 328 N. Glassell, representing the applicant, indicated they are not opposed to a study session to review the past history of the project. The area where the 5,000 sq. ft. lots are being proposed has a holding capacity of approximately 300 units, and 105 units are proposed. The condominium project on the south side of Via Escola is brought in as a single conditional use permit, with four different product typesinanefforttomeetawiderrangeofhousingneedsanddemandsin the community. The overall density is under 15 dwelling units to the acre. It is proposed the cul-de-sacs serving the primary access points to the condominium project be dedicated public streets, with four separate homeowners associations. It is proposed thatalandscapemaintenancedistrictbeformedwhichwouldhandleallopen space in the Edison easement and maintain the landscape in a uniform manner.The entire project, without Belmont Shores, would be assessed for the district. Included in the district is the major slope on the north side between the lots and back lots of Anaheim. A small strip of land by Via Escola will be-a landscape buffer with possibly sound wall, and will be part of the district.The enhanced paving in the street makes a statement of arrival at the entrance points. The Public Works and Water Departments were concerned because of possible utility problems which would create expensive repairs to the concrete. Mr. Mickelson proposed a reserve account in the Landscaped Maintenance District to take care of this problem.Mr. Mickelson was asked about the legal implications of the short public streets and parking problems. Mr. Mickelson indicated staff has agreed the cul-de-sacs havebeendesignedaccordingtopublicstandards. If the City does not want the enhanced paving, Mr.Mickelson indicated they could 441 CITY COUNCIL MINUTES JANUARY 28, 1992 13.4 PUBLIC HEARINGS (Continued) Bob Bennyhoff, 10642 Morada Dr., commented he does not like the 5,000 sq. ft. lots, and recommended a study Session to discuss the density of the project, the Planned Community designation which should conform to the City's zoning standards, the proposed park is not a very big park for the development proposed; and a condition on the map specific commitment on paper what will be done. Council members discussed continuing to a Study Session to consider the project density, the 5,000 sq. ft. lots, PC designation, the square foot lot policy, open space and all other concerns that were presented. The Director of Community Development commented the Planned Unit Developments is one type of development, however in this context, this is a Planned Community, which is totally separate zone. This can be reviewed at the Study Session. THE PUBLIC HEARING REMAINS OPEN. MOTION - Spurgeon SECOND - Coontz AYES - steiner, Barrera, Coontz, Spurgeon ABSENT - Mayor Beyer Moved to continue this item to March 17, 1992, and in the interim,schedule a Study Session to discuss concerns raised regarding the project.14.PLANNING AND ENVIRONMENT None 15. REPORTS FROM COUNCIL MEMBERS - None 16. ORAL PRESENTATIONS - None ADJOURNMENT The City Council adjourned at 8: 01 P.M.GENE BEYER MAYOR 6lAA/",~<T-l) CJ- ~MA ILYN J. JENS~, C " CITY CLERK TEM BY:Page 21