HomeMy WebLinkAbout08-10-2010 Council MinutesAPPROVED BY THE CITY COUNCIL ON AUGUST 24, 2010
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REtiULAR MEETING August 10, 2010
The City Council of the City of Orange, California convened on August 10, 2010 at 4:30 p.m.
in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Given by Pastor John Rose, Orange City Police Chaplain
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Denis Bilodeau
1.3 ROLL CALL
PRESENT - Smith, Murphy, Cavecche, Dumitru, Bilodeau ABSENT -
None 1.4
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Presentation of $
304,000 from the Community Foundation of Orange for the Grijalva Park Gymnasium
project, presented by Bill Steiner.2. PUBLIC
COMMENTS -None Page 1
CITY COUNCIL MINUTES
3. CONSENT CALENDAR
August 10, 2010
All items on the Consent Calendar are considered routine and are enacted by one
motion approving the recommended action listed on the Agenda. Any member of the
City Council, staff or the public may request an item be removed from the Consent
Calendar for discussion or separate action. Unless otherwise specified in the request to
remove an item from the Consent Calendar, all items removed shall be considered
immediately following action on the remaining items on the Consent Calendar.
3.1 Confirmation of warrant registers dated July 22, 27 and 29, 2010.
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of July 27, 2010. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
AGREEMENTS
REMOVED AND HEARD SEPARATELY)
3.4 Cooperative Agreement between the City of Orange and the City of Garden Grove
for street improvements on Chapman Avenue between Haster Street and Lewis
Street. (A2100.0 Agr-
5611)Discussion - Councilmember Dumitru questioned the delay in payment since 2006, and
received reassurance that this was aone-time
oversight.MOTION -Dumitru
SECOND Murphy
AYES Smith, Murphy, Cavecche, Dumitru, Bilodeau
ACTION: Approved the Cooperative Agreement in the amount of $93,730.45; and
authorized the Mayor and City Clerk to execute on behalf of the City.
Page 2
CITY COUNCIL MINUTES - August 10, 2010 3.
CONSENT CALENDAR (Continued)3.
5Fifth Amendment to Agreement No. 4887 with Hall & Foreman, Inc. for the Santiago
Creek Bike Trail, Tustin-to-Collins segment, CIP Project No.
6100.A2100.0 Agr-
4887.5)ACTION: Approved fifth Amendment to Agreement No. 4887; and
authorized the Mayor and City Clerk to execute the amendment on behalf of
the City.3.6 Fourth Amendment to Consultant Services Agreement with
AEF Systems Consulting, Inc., to provide software implementation oversight of
the Eden System. (A2100.0
Agr-5017.4)NOTE: Councilmember Murphy recorded an abstention due to a
possible conflict of interest related
to his employment ACTION: Approved fourth amendment to consultant services agreement
in an amount not to exceed $50,000; and authorized Mayor and City Clerk to execute on
behalf
ofthe City.3.7 First Amendment to the 2007 Agreement with the
Orange International Street Fair, Inc. (OISF) for production of the Orange
International Street Fair.Continued from July 27, 2010) (AZ100.0
Agr-1071.G.1)ACTION: Approved the First Amendment to the
OISF 2007 Agreement; and authorized the Mayor and City Clerk to execute on
behalf of the City.3.8 License Agreement between the City of Orange
and the Orange Redevelopment Agency for the use of certain Agency-owned
Parking Lots for the Orange International
Street Fair. (A2100.0 Agr-5612)See related OrangeRedevelopment
Agency Minutes Item No. 3.3.)ACTION: Approved the License Agreement; and
authorized the Mayor and City Clerk to
execute
onbehalf of the City.BIDS 3.9 Rejection of Bids -Bid No. 090-42;
Construction of the City of Orange Fire Station No. 3 Solar Power
Project funded by Energy Efficiency
and Conservation Block Grant (EECBG). (C2500.H)A~:TION: Rejected all bids
received;
and authorized
CITY COUNCIL MINUTES August 10, 2010
3. CONSENT CALENDAR (Continued)
3.10 Bid No. 090-44; Approval of plans and specifications, and request authorization
to advertise for bids for construction of the emergency power generators for
Fire Stations No. 2, 3, and 5 and one1,000 gallon diesel tank for Fire Station No.
2.C2500.
H)ACTION: Approved plans and specifications, and authorized advertising for bids,
for construction of Fire Stations No. 2, 3, and 5 and one1,000 gallon diesel tank for
Fire Station No. 2
project.3.11 CLAIMS (C3200.
0)SUMMARY: The following claim(s) have been received and investigated by the
City Attorney's Office and/or the Risk Manager. After a thorough investigation with
the involved departments, it is the recommendation of the City Attorney's Office that
the Application to Present a Late Claim and the following claim be
denied.1. Deny the following Application to Present a Late
Claim:a. Tsering
Asola-Wright 2. Deny the following Claim
for Damages:b.
Harry Fookes ACTION: Denied the Application to Present a Late Claim andthe Claim(
s) for damages anal referred to City Attorney
and
Adjuster.CONTRACTS 3.12 Award of Contract -Bid No. 090-22; Santiago Creek Bike Trail
North Project -Hewes Street from Bond Avenue to Villa Park Road and Villa Park
Road from Hewes Street to SantiagoBoulevard. (A2100.
0 Agr-5613)ACTION: Awarded the contract in the amountof $2,654,452.
00 to 4-Con Engineering, Inc. of Riverside, CA; and authorized the Mayor
and City Clerk to execute on
behalfof the City.3.13 Contract Change Order No. 1 -Bid No. 090-15; Fire
Station No. 4 Apparatus Bay Expansion andMinor Tenant
Improvements Project. (A2100.0 Agr-5523)ACTION: Approved Contract Change Order No. 1in the
amountof $38,780.00
to W.
CITY COUNCIL MINUTES August 10, 2010
3. CONSENT CALENDAR (Continued)
3.14 Contract Change Order No. 1 and Final; Bid No. 090-27; Annual
Concrete Replacement at Various Locations, Fiscal Year 2009-10. (A2100.
0 Agr-5548)ACTION: Approved Contract Change Order No. 1 and Final in
the amountof 196,016.14 to C.J. Concrete Construction, Inc. for
theextra work.3.15 Final Acceptance of Bid No. 090-27; Annual
Concrete Replacement at Various Locations, FY2009-10 -performed by C.
J. Concrete Construction, Inc.; and authorization to file the Notice of Completion with
the County Recorder. No staff
reaort required). (A2100.0 Agr-5548)ACTION: Accepted public work
improvements, authorized release of First National Insurance Company of America of Washington, Bond
No. 6698074in the amount of 291,300.00 to the contractor on said job; and authorized
the Mayor and City Clerk
to
executethe Notice of Completion.FACILITIES 3.16 Closure of the Orange Public Library and
History Center for FY 10-11 on Saturday, September 4, 2010and Wednesday, November
24, 2010
at 6:00 p.m.C2500.I)ACTION: Moved to close Orange Public
Library
facilities
tothe public as requested,FY10-11.PAYMENTS 3.17 Authorization to pay in lieu
fee to Santa Ana Watershed Association (SAWA) for invasive weed removal and
restoration required for the Santiago Creek
Bike Trail,Tustin to Collins project. (C2500.N)ACTION: Approved payment of the
in
lieufee to Santa Ana Watershed Association.PURCHASES 3.18 Purchase of print
materials for Orange Public Library &
History Center from Baker & Taylor, Inc. (C2500,I)ACTION: Authorized purchase
of print materials for Orange Public Library facilities from Baker &
Taylor, Inc.
CITY COUNCIL MINUTES August 10, 2010
3. CONSENT CALENDAR (Continued)
3.19 Purchase of water meters from Neptune Technology Group, Inc. on an as needed
basis for repair and replacement of existing system meters. (C2500.P)
ACTION: Authorized purchase of Neptune replacement water meters from Neptune
Technology Group, Inc, on an as needed basis in the amount not to exceed $157,963.
3.20 Purchase of a computer/software package for providing the fastest access to vital
crime data held in COPLINK, from Environmental Systems Research Institute
ESRI), Inc. and the software from i2 Inc., parent company of COPLINK.
C2500.K)
NOTE: Councilmember Murphy recorded an abstention due to a possible conflict of
interest related to his employment
ACTION: Appropriated $32,000 to 357.4011.55131 (State - 15%) Asset Forfeiture-Equipment);
and approved the computer purchase from ESRI in the amount of 7,
884.37and the software purchase from i2 Inc. in the amount of $21,745.65.SPECIAL
EVENTS 3.
21 Temporary closure of the municipal parking lot at 170 S. Olive St. (adjacent to Orange
Senior Center), on Sunday, September 19, 2010 for a special event.P2500.
0.9)ACTION:
Approved the request of Orange Elderly Services to temporarily close M~
inicipal Parking Lot No. 8 at 170 S. Olive Street on Sunday, September 19, 2010 for a
special event.MOTION -
Smith SECOND -
Cavecche AYES -
Smith, Murphy, Cavecche, Dumitru, Bilodeau Item
3.4 was removed and heard separately. Councilmember Murphy recorded an abstention
on Items 3.6 and 3.20due to a possible conflict of interest related to his employment.
All other items on the Consent Calendar were approved as recommended.
END
OF CONSENT CALENDAR Page
6
CITY COUNCIL MINUTES August 10, 2010
4. REPORTS FROM MAYOR CAVECCHE -Mayor
Cavecche spoke on concerns with the congregation of day laborers in the Taft/Tustin area;
and requested, with Council concurrence, the City Attorney bring back a report on broadening
and strengthening regulations on congregation of day laborers. City Attorney David
DeBerry noted a recent court case in Redondo Beach that may allow broadening of the city'
s ordinance.Mayor
Cavecche requested, with Council concurrence, that employee salaries and Council stipends
be placed on the City's Internet page with auser-friendly application that is easy to
navigate.
5. REPORTS FROM COUNCILMEMBERS -Councilmember
Dumitru reported that other cities throughout California are showing an interest
in resolutions similar to Orange's recently adopted Resolution opposing the California High
Speed Rail Authority project.6.
REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS -None 7.
ADMINISTRATIVE REPORTS -None 8.
REPORTS FROM CITY MANAGER -None 9.
LEGAL AFFAIRS 9.
1 ORDINANCE NO. 07-10 (SECOND READING)
An Ordinance of the City Council of the City of Orange Prohibiting the Business of Selling,
Cultivating or Distributing Marijuana. (A2500.0 Ord-07-10
Medical Marijuana)
MOTION -Smith
SECOND -Murphy AYES -Smith, Murphy, Cavecche,
Dumitru, Bilodeau Moved that Ordinance 07-10 be read by title only and same was approved and
adopted by
the preceding
CITY COTJNCIL MINUTES August 10, 2010
10. HEARINGS
10.1 CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY REVENUE
REFUNDING BONDS FOR THE BENEFIT OF LUTHERAN HIGH SCHOOL
ASSOCIATION OF ORANGE COUNTY. (53500.A Agr-
5614))Time set for public hearing to consider an application from Lutheran High School
Association of Orange County for the issuance of bonds in an aggregate principal amount of
approximately 20,000,000 to complete the Lutheran High School campus, including classrooms, office
space and a new entrance, which is located at 2222 North Santiago Boulevard in the City of
Orange.Discussion -Rich Jacobs gave the staff report. He noted that the correct name of the
authority is the California Enterprise Development Authority. In response to Council questions,
he confirmed that the City was not responsible for the repayment of the bonds and there was
no fee involved with the associated membership in the Authority, but that the City is required
to conduct this hearing in conformity with federal tax
laws.THE MAYOR OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS,
THE MAYOR CLOSED THE PUBLIC
HEARING.RESOLUTION NO.
10503 Resolution of the City Council of the City of Orange approving associate membership by
the City of Orange in the California Enterprise Development Authority and the execution of
an Associate Membership Agreement relating to associate membership of the City in
the
Authority.MOTION -
Bilodeau SECOND -
Smith AYES -Smith, Murphy, Cavecche, Dumitru,
Bilodeau Moved to approve Resolution No.
10503.RESOLUTION NO.
10504 Resolution of the City Council of the City of Orange approving the issuance by
California Enterprise Development Authority of not to exceed $20,000,000 aggregate principal amount
of the Authority's revenue obligations for the purpose of refinancing and financing the cost
of acquisition, construction, renovation, installation, equipping and furnishing of facilities for
the benefit of Lutheran High School Association of Orange County, providing the terms
and conditions for such obligations and other matters relating thereto herein
specified.MOTION -
Bilodeau SECOND -
Smith AYES -Smith, Murphy, Cavecche, Dumitru,
Bilodeau Moved to approve Resolution No.
10504.Page
CITY COUNCIL MINUTES
10. HEARINGS (Continued)
August 10, 2010
10.2 CIRCULATION AND MOBILITY ELEMENT AMENDMENT FOR
DOWNGRADING THE CLASSIFICATION OF OLD TOWNE ARTERIALS AND
THE PLAZA ON THE CITY'S MASTER PLAN OF STREETS AND HIGHWAYS -GENERAL
PLAN AMENDMENT 2010-0001. (C2300.E GPA 2010-
0001)Time set for public hearing to consider the intent to work with the Orange
County Transportation Authority to downgrade certain features of the Old Towne network on
the County Master Plan of Arterial Highways (MPAH) as a means of avoiding long-
term impacts to
historic resources.Discussion -Community Development Department Director Alice Angus gave the
staff report,reporting that this item was in response to adoption of the General Plan earlier
this year.Mayor pro tem Smith stated that the EIR came through the General Plan update
project, but that it did not address impacts on the historic resources if South Glassell Street,
from Almond to La Veta, were ever widened in the future. She queried how that
documentation evaluation could be obtained for the purpose of protecting the
historic resources.Mrs. Angus responded that the action taken by Council will downgrade the classification
of the street, changing it from an arterial to a collector, two-lane street, so that it would
never be a candidate for widening. She added that leaving the streets in
their existing configuration would ensure the protection; and that the County agreed to the
downgrade as well.THE MAYOR OPENED THE PUBLIC HEARING. THERE BEING
NO SPEAKERS, THE MAYOR CLOSED
THE PUBLIC HEARING.
RESOLUTION NO. 10506 A Resolution of the City Council of the City of Orange approving
General Plan Amendment No. 2010-0001 amending the Circulation and Mobility Element
to downgrade roadway and intersection classifications located in Old TowneOrange on the City's
Master Plan
of Streets and Highways.
Applicant: City
of Orange
MOTION -Smith SECOND -Cavecche AYES -Smith,
Murphy, Cavecche, Dumitru, Bilodeau Moved approval
of Resolution
CITY COUNCIL MINUTES August 10, 2010
10. HEARINGS (Continued)
10.3 PROPOSED FISCAL YEAR 2010-2011 (FY 11) CITY OF ORANGE
BUDGET AND SEVEN YEAR CAPITAL IMPROVEMENT PROGRAM. (C2500.J.1.1) TAPE
877 The public hearing to consider the Final Fiscal Year 2010-11 Operating Budget,
and to consider a Resolution of the City Council adopting a limitation on certain
appropriations in accordance with Article XIII of the State Constitution, was continued to this time
from July 27, 2010. (See related Orange Redevelopment Agency Minutes ItemNo.
9.1.)Discussion -Deputy City Manager Rick Otto gave the staff report. He detailed
the anticipated revenues and expenditures, and provided the four actions taken toward balancing
the budget:Departmental Operating Budget Reductions - $1.3
million;Renegotiated labor agreements - $4.4 million;
Continuation of frozen positions - $5 million;Reduction
in allocations to internal service funds - $4.7 million.In addition
to these actions, he provided two additional measures proposed to balance the budget:One-
time
revenues & transfers - $3.5 million;Use of
unreserved fund balance available - $4.1 million.Mr. Otto also
noted the upcoming highlights in FY 2010-11: Grijalva gymnasium opening;technology enhancements;
economic development activities; roadway projects moving forward; and
the nearly complete quiet zone.City Manager
John Sibley provided a look ahead to the FY 2011-12 budget, and listed the next options
to consider in addressing the projected structural gap of approximately $7.6 million:Restructure
of the organization;Increase
the use of contractual services;Increase
the use of regional services;Adjustment
to service levels;Addressing
rising retirement costs.Mayor
pro tem Smith clarified with staff that the budget includes reserves in the event of a catastrophic
event, and that most cities try to achieve at least a reserve of 10% of the total budget.
Finance
Director Rich Jacobs reported there currently exists a catastrophic reserve of $18 million,
along with a $6.1 million fund balance reserve.Councilmember
Dumitru noted he had asked for information on outsourcing ambulance operations
in the past, and would like to see this RFP process begin as soon as possible, as this could
create significant savings.Page
10
CITY COUNCIL MINUTES August 10, 2010
10. HEARINGS (Continued)
City Manager John Sibley indicated the process for an ambulance privatization RFP can begin
and information on that can be provided to Council along with results of the evaluation of the
Fire Department organization study in an effort to deliver service more efficiently while
cutting costs.
Councilmember Bilodeau thanked staff for their efforts in minimizing the gap and being open
to further budget streamlining. He commented on bargaining units accepting more
responsibility for PERS retirement costs. He also stated support for reviewing the financial
calculations of privatizing ambulance service.
Mayor Cavecche stated she had requested additional reduction possibilities from the City
Manager in the event the Council decided not to allow the use of the unreserved fund balance
to close the budget gap.
Mr. Sibley indicated that a further $3.1 million could be saved by taking steps such as:
closure of a fire station; closure of two branch libraries; cessation of the subsidy to the
Senior Center; further operating cuts by departments; and exploration of revenue ideas.
He stated that would still leave a $1 million gap, and responding to a question by Mayor
Cavecche, commented that to address additional changes to employee benefits would require
significant changes to the already renegotiated union contracts.
Responding to a question from Mayor Cavecche, Human Resources Director Steven Pham
stated that approximately 28 employees have inquired about retirement this year; and that
overall there are 68 employees meeting the minimum criteria for retirement.
Mayor Cavecche stated that along with adoption of the budget, there is a need for clear
direction on structural changes on how the city conducts business and provides services in the
future. She directed that cost saving plans, strategies, and numbers on restructuring services
provided by the City be brought back to Council in the Fall.
Councilmember Murphy expressed his preference for minimizing fund balance available use
and requested that staff report back once final, actual fund balance available numbers for the
end of FY 10 are known. He expressed support for bringing back the Fire Department
evaluation as soon as possible, and confirmed with staff that potential retirement figures were
not included in the proposed budget.
Council commended City employees for their part in contributing to closing the gap in the
budget, acknowledging sacrifices made with less staffing and resources, while continuing to
serve the community.
Mayor pro tem Smith stated concern for outsourcing City services, stating it is important that
control not be lost in the quality of the service.
Page 11
CITY COUNCIL MINUTES
10. HEARINGS (Continued)
August 10, 2010
THE MAYOR OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, THE
MAYOR CLOSED THE PUBLIC HEARING.
RESOLUTION NO. 10477
A Resolution of the City Council of the City of Orange adopting said City's Budget for the
Fiscal Year 2010-2011 and relating to transfers of funds between and within
appropriations,transfers between funds, and additional
appropriations.MOTION -
Smith SECOND -
Cavecche AYES -Smith, Murphy, Cavecche, Dumitru,
Bilodeau Moved to approve Resolution No.
10477.RESOLUTION NO.
10492 A Resolution of the City Council of the City of Orange adopting the appropriations limit
for the Fiscal Year
2010-11.
MOTION -Smith
SECOND -Cavecche AYES -Smith, Murphy, Cavecche,
Dumitru, Bilodeau Moved to approve Resolution
No. 10492.
MOTION -Smith
SECOND -Cavecche AYES -Smith, Murphy, Cavecche,
Dumitru, Bilodeau Moved to find that the portion of the Fiscal Year 2010-11 Budget subject to the
Gann limitis 65,258,206, and therefore
within the
limit.MOTION -
Smith SECOND -Cavecche AYES -Smith, Murphy,
Cavecche, Dumitru, Bilodeau Moved to direct the City Manager to return in October with information
on increasing savings and the restructure of the organization for implementation in FY
2011-12 through increased use of contractual services with a quality component; increased use
of regional services and enhancing cooperation of neighboring cities; establishment of
a second-tier retirement benefit looking at the possibility of a defined contribution v. a defined
benefit system; as well as additional organizational adjustments
including recommendations from the evaluation currently underway on the Fire Department; and identifying the
actual savings that can be applied
towards the
CITY COUNCIL MINUTES
10. HEARINGS (Continued)
August 10, 2010
10.4 PROPERTY ACQUISITION BY EMINENT DOMAIN OF 2050-2094
AND 2000-2040 NORTH TUSTIN STREET. (C2500.
M.14)Time set for a noticed hearing on resolution of necessity to acquire property located
at 2050-2094 and 2000-2040
North Tustin Street.NOTE: Staff requested continuance to
August 24, 2010.
MOTION - Dumitru
SECOND -Cavecche AYES -Smith, Murphy, Cavecche,
Dumitru, Bilodeau Moved to continue to August 24, 2010, at 4:30
p.m.11. RECESS TO THE MEETING OF THE ORANGE
REDEVELOPMENT AGENCY 12. RECESS TO
CLOSED SESSION The City Council recessed to a Closed Sessionat 6:35 p.m. for the
following purposes:a. Conference with legal counsel -anticipated litigation pursuant to Government
Code Section54956.9(b): Two potential cases -County
of Orange.b. 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.13. ADJOURNMENT -The City Council adjournedat 7:15 p.m. There was no
7:00 p.m. Session. The next Regular Meeting is scheduled for August 24, 2010at 4:30
p.m.Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda
of a regular meeting of August 10, 2010 at Orange Civic Center kiosk, Police facility at
1107 North Batavia, and the Main Public Library at 407 E. Chapman; 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; and available at the Civic Center City Clerk'
s Office.E. MURPHY
V. CAVECCHE CITY
CLERK AYOR