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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