HomeMy WebLinkAbout1_24_2006 - Council MinutesAPPROVED BY THE CITY COUNCIL ON FEBRUARY 14,2006
CITY COUNCIL MINUTES ORANGE, CALlFORNIA
OF A REGULAR MEETING January 24,2006
The City Council of the City of Orange, California convened on January 24,2006 at 4:30 p.m. in
a Regular Meeting in the Council Chambers, 300 E. Chapman Avenne, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Pastor Ed Trenner, Grace Brethren Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Teresa Smith
1.3 ROLL CALL
PRESENT - Murphy, Cavecche, Ambriz, Dumitru, Smith 1.
4PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Presentation
of Proclamation to Police Services Dog, Titus, and Orange Police Officer David
Pasino, upon Titus' retirement.Presentation -
Acceptance of donation from the Mom's Club of Orange North to help fund the
installation of the fence near the tot lot area at La Veta Park.Presentation - Acceptance
of donationfrom the Renaissance Lodge and Foundation of the Sons of
Italy to the Main Library Expansion project.Employee Service Awards
presented to:Gary Sheatz, City
Attorney's Office; Pamela Galera, Community Services;Jan McGovney, Community
Services; Anthony Bui, Finance;Joseph Albers, Fire
Department; Valerie Chan, Library; Patricia Roth, Personnel;Rebecca Serna, Personnel;
Brent Taylor, Police; Marilyn Evans, Police;Sheryn Mauerhan, Police;
Joyce Hansen, Public Works 2. PUBLIC COMMENTS -
None
CITY COUNCIL MINUTES January 24, 2006
3. CONSENT CALENDAR
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
Councilor staff 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 Request Council Confirmation of warrant registers dated January 5, 2006 and
January 12, 2006 .
ACTION:Approved.
3.2 Request approval of City Council Minutes, Regular Meeting of January 10, 2006,
and Adjourned Regular Meeting of January 17,2006. (C2500.D.4)
NOTE: Mayor Murphy abstained from voting on the Minutes of January 10,2006.
Councilmember Dumitru abstained from voting on the Minutes of January 17, 2006.
ACTION:Approved.
3.3 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION:Approved.
3.4 Receive and file the City Treasurer's Report, period ending December 31, 2005
C2500.F)
ACTION:Approved.
CITY COUNCIL MINUTES January 24,2006
3. CONSENT CALENDAR (Continued)
AGREEMENTS
REMOVED AND HEARD SEPARATELY)
3.5 Award of Consultant Services Agreement to Integrated Design Services, Inc. (IDS)
for the design and construction management services for Grijalva Park at Santiago
Creek Extension Project, Phase I, design and construction of the Gymnasium/Sports
Center and supporting facilities. (A2100.0 Agr-
4829)SUMMARY: On December 13, 2005, the City Council approved the conceptual
master plan for the City's Grijalva Park extension property and the conceptual architectural
plans for the gymnasium/sports center. Staff is moving forward to hire the projcct/
construction manager that will oversee the design and construction of the first phase of the
Grijalva Park at Santiago Creek Extension Project, which is the Gymnasium/Sports Center.
IDS has been chosen in an amount not to exceed $222,
821.
Discussion Mayor pro tem Cavecche asked about the qualifications of IDS; and wanted to ensure
that in the future, more detailed information would be provided to the Council on award
of bids. She will ask for a criteria to be used on all consulting agreements showing
what departments were involved in the decision and what the ratings were for each bid, and
she asked that a policy be put in place regarding all consulting agreements. She asked
if there would be any problems with time overlap since IDS is also doing work on
the Library until the end of this
year.Councilmember Ambriz asked who would actually oversee the project. He asked
about the rating process on the bids, and suggested that rating sheets have attachment sheets
for rater's comments. He stated that it would be helpful to see comments; and asked if
the rating sheets could be shared with
council.Bonnie Hagan, Interim Community Services Director, stated that the Public
Works representative on the Grijalva team will oversee the contract; and that IDS scored well
in the review process and the timing of this project works well with the timing of
the
Library.City Manager, John Sibley stated that he would like to review the request for review
of the rating sheets of individual raters with the City
CITY COUNCIL MINUTES January 24, 2006
3. CONSENT CALENDAR (Continued)
MOTION - Cavecche SECOND -
Smith A YES -
Smith, Ambriz, Murphy, Cavecche, Dumitru ACTION: Approved professional
services agreement between the City and IDS in an amount not to
exceed $222,821 for the design and construction management services for Grijalva Park at
Santiago Creek Extension Project; and, authorize the Mayor and the City Clerk to execute
the agreement on behalf of the City.FISCAL IMP ACT:
Sufficient funds exist in the following account:550-7021-481200-
1606 Gym/Sports Center, Proposition 40 222,821
3.6 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
claim(s) be denied.
a. Linda Grajeda
b. Jeffrey Trott
ACTION: Denied Claim(s) for damages and refer to City Attorney and Adjuster.
CONTRACTS
3.7 Award of Contract - Bid No. 056-14; D-153 Cambridge Street/Palm Avenue
Storm Drain Inlet Improvement and Windes Drive/Grovewood Lane Drainage
Facility Improvement. (A2100.0
Agr-4830)SUMMARY: The bids were opened on December 15, 2005. Six (6)
bidders responded to the invitation for bids. The apparent low bidder is B.R. Day Construction,
Inc., for 77,454.00. The Engineer's Estimate is $
80,000.ACTION: Awarded a contract in the amount of $77,454.00 to B.R.
Day Construction,Inc., 1686 E. Palm Drive, Covina, CA 91724, and authorize the Mayor and City
Clerk to execute on behalf of
the City.FISCAL IMP ACT: Funds are budgeted and available in the
Capital Improvement Program in the
following accounts:271-5021-483300-5111 Cambridge/Palm Storm Drain
Inlet Improvement $60,000.00 271-5021-483300-5112
CITY COUNCIL MINUTES January 24, 2006
3. CONSENT CALENDAR (Continued)
3.8 Final Acceptance of Bid No. 056-03; Well 22 Rehabilitation and authorization
to file Notice of Completion with the County Recorder (No staff report
reQuired).A2100.0 Al!
r-4736)SUMMARY: Bid No. 056-03; Well 22 Rehabilitation. The contractor on
said job was General
Pump Company, Inc.ACTION: Accepted public work improvements, authorize release
of Travelers Casualty and Surety Company of America of Connecticut, Bond No. 104442157, in
the amount of 115,800.00 and authorize the Mayor and City Clerk to execute
the
Notice of Completion.
FISCAL IMPACT: None.3.9 Request to authorize execution of an agreement with Baker & Taylor,
Inc. for purcha~of an Opening Day Collection for the expanded new Main
Library facility consisting (books and audio-visual materials, for an amount not to exceed $
434,
000.00. (A2100.Agr-4831)SUMMARY: With the 2006 opening of an expanded
new Main Library building that will be two and a half times the size of the previous
facility, staff anticipates that public demand for library material will double. The City's
successful Library Bond Act grant application in 2002 included a pledge to purchase
substantial numbers of new library books and audio-visual materials to meet
that anticipated demand. Library Bond Act funding includes $550,000 to purchase, catalog,
and process new materialsfor the expanded new Main Library/History
Center. Approximately three-quarters of this amount 434,000) is to outsource with a single major
book jobber or provider of materials that draws from a wide variety of publishers. Library
staff prepared and issued a Request For Proposals (RFP), evaluated proposals
from three major vendors, and recommends the vendor which best meets the Library's
needs. This recommendation is to contract with Baker & Taylor, Inc., the low bidder, to
purchase, catalog, and process new books and other materials for
the expanded new Main Library/History Center.ACTIONS: 1) Authorized expenditure no! to exceed $
434,000.00 in one-time costs for the purchase of new library materials
for the expanded new Main Library/History Center,including
cataloging, processing, Radio Frequency Identification (RFID) tagging, and storage until the library opens; and 2) Authorize
the Mayor and City Clerk to execute an agreement with Baker & Taylor,
Inc., on behalf of the City of Orange.FISCAL IMPACT: A total of $434,
000.00 iscurrently allocated and available in Account 500-
CITY COUNCIL MINUTES January 24,2006
3. CONSENT CALENDAR (Continued)
PARKING
3.10 Request for temporary suspension of on-street parking restrictions on Old
Camp Road from Canyon View Avenue northerly to the end of the cul-
de-sac; on Saturday, January 28, 2006, from 6:00 p.m. through 11:00 p.m. (S4000.S.
3.1.1)SUMMARY: The Canyon Hills Neighborhood will host a party on
January 28, 2006.Due to anticipated attendance, it may be necessary to park on the
street, which is currently posted for No
Parking Any Time.ACTION: Approved the request and temporarily suspend
the on-street parking restrictions on Old Camp Road from Canyon View Avenue northerly to
the end of the cul-de-sac; on Saturday, January 28,2006, from 6:00 p.
m. through 11 :00
p.
m.FISCAL IMP ACT: None.RESOLUTIONS 3.
11 RESOLUTION NO. 10056 (C2500.M)A Resolution of the City Council of the City
of Orange authorizing applicationfor the Fiscal Year (FY) 2005/2006 SB
1346 Rubberized
Asphalt Concrete Grant
Program.ACTION: Approved.
MOTION - Smith SECOND - Cavecche AYES - Smith, Ambriz,
Murphy, Cavecche, Dumitru Item 3.5 was removed
and heard separately.Councilmember Dumitru abstained on
Item 3.2.were
approved as recommended.Mayor Murphy abstained on
Item 3.2.All other items on
the Consent Calendar END
OF CONSENT CALENDAR 4. REPORTS FROM MAYOR
MURPHY - None.5. REPORTS FROM COUNCILMEMBERS -
CITY COUNCIL MINUTES January 24, 2006
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
6.1 Accept resignation from Victoria James from the Community Development Block
Grant Committee, effective immediately; and direct City Clerk to post Notice of Vacancy.
OR1800.0.8.3)
MOTION - Smith SECOND -
Cavecche A YES -
Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to accept,
with regrets, the resignation of Victoria James from the Community Development Block Grant
Committee.7. ADMINISTRATIVE REPORTS
7.1 Report
fromInterim Community Services Director - Award of Bid for Hart Park Pool Building Renovation Bid
No. 045-29, appropriation of funds, and contract amendment for construction management
services. (A2100.0 Agr-4832; 4375.A.1)SUMMARY: The
bids for Hart Park Pool Building Renovation were opened on January 10,2006 and
two (2) formal bids were received for this project. The low bidder was Abeam Construction, Inc.,
267 E. Badillo Street, Covina, CA 91723, in the amount of $632,106. The current contract
with Rengel+Co. Architects will be amended to include construction management services
in an amount not to exceed $19,305.Speakers Don
Zweifel,
DBE Advocate, questioned the award of bid to Abeam Construction.Eddie Qadar,
California Building Evaluation, questioned bidding practices, and asked that the award of
bid be delayed for further evaluation.Discussion Bonnie
Hagan,
Interim Community Services Director reviewed the staff report and pointed out that the
actual amount of contract is $642,106 not $632, I 06.Councilmember Smith
noted that there are important historic aspects to the building such as the windows and
window frames which are noted to be replaced if they cannot be repaired. She asked who
determines if the window frame is repairable. She noted that the staff report states that removed
items will be evaluated and salvaged if they are of historic significance and she asked how
historic significance is determined. She asked for an update on the upstairs section.She asked
if there was an opportunity for replacement of kitchen appliances.
CITY COUNCIL MINUTES January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
Ms. Hagan responded that staff shared the same concerns and stated that all windows will remain
if there is no damage, and if it is broken it will be replaced. In response to the question of
salvaged items, Ms. Hagan stated that all removed pieces will be evaluated, restored and kept
within supplies to possibly be used at future renovations. There is also a possibility some items
could be donated to OTPA.
Michael Morell of Rengel Architects stated that the glass is considered separately from the
window frames, and when part of a window frame is damaged, only the damaged part will be
replaced. As an update to the upstairs, Mr. Morell explained that there would be no change or
demolition in the walls, and there will be replacement of carpet, floor, light fixtures, and
windows. He stated that the kitchen appliances will be cleaned and refurbished.
Councilmember Ambriz stated that because this is a historic building, he hopes the consultant is
exploring grant opportunities to offset these costs.
Rich Jacobs, Finance Director responded to questions regarding the Fund Balance 511 by stating
that $603,000 is to be appropriated from the 511 Fund and did not show up on a listing because
it had not yet been appropriated.
In response to the two speakers opposing the award of bid, City Attorney, David DeBerry had
reviewed and investigated the complaints and determined that irregularities did not work a
competitive bid advantage for lowest responsible bidder or affect the bid amount. He informed
City Council that they could award the contract to Abeam Constructiclll and in doing so, waive
the bid irregularities.
It was clarified that the DBE form was submitted in the original packet, but it was not complete.
The same consideration would be given to other bidders if the city feels it is a minor mistake in
the bid; and if it is made by the lowest responsible bidder., then the city would ask the lowest
responsible bidder to provide the information to ensure compliance with the bid requirements.
Mayor pro tem Cavecche stated a concern about the bids coming in significantly higher than the
engineer estimates, and she stated that the engineers need to get a better feel of costs; asking that
staff investigate how the engineers come to the bid estimate.
Ms. Hagan addressed a question from Mayor Murphy in stating that this was not bid in one lump
sum to allow for the possibility of only doing one part of the project, and it seemed the best
option was to do it as an add-
CITY COUNCIL MINUTES January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
MOTION - Dumitru SECOND -
Smith A YES -
Smith, Murphy, Cavecche, Dumitru NOES - Ambriz ACTION:
I) Approved the
Award
of Bid No. 045-29 Hart Park Pool Building Renovation, to Abeam Construction, Inc. 267
E. Badillo Street, Covina, CA 91723, in the amount of$642, I 06.2) Approved the
professional services contract amendment between the City and Rengel+Co Architects in
amount not to exceed $19,305 for the construction management services for Hart Park Pool Building
Renovation;3) Authorized an
appropriation of $603,000 from Fund 511 to 511-7021-481200-0027 (Par
Acquisition & Development - Quimby); and,4)
Authorized the Mayor and City Clerk to execute the contracts on behalf of the City.FISCAL
IMP ACT: Upon appropriation, sufficient funds are available in the following accounts:
511-
7021-
481200-
0027 310-9645-
481200-0027 Hart Park
Renovation Hart
Park Renovation
CDBG 603,000 111,000 7.2 Report from Police Chief - Purchase a total of 14
Police pursuit vehicles from Wondries Fleet Group per City of Los Angeles Bid
No. 0000495569. (C2500.K)SUMMARY: The Police Department would like to purchase 14
black & white Ford Crown Victoria Police Pursuit Sedans, including 14 ESP premium care warranties for
a total cost of 359,478 from Wondries Fleet Group per City of Los Angeles
Bid No. 0000495569. This acquisition will replace nine current units and add five more units to
the Police Department fleet.An appropriation of $231,092 from Equipment Replacement funds (including $
32,950 for the cost of emergency equipment necessary for five additional cars) and $161,
336 from the General Fund is requested for the purchase of the 14 vehicles. In addition, an
appropriation of $66,000 from unreserved Federal Asset Forfeiture funds is needed to
purchase and install radios,computers and modems, and monthly cost of
wireless airtime and decals.NOTE: Mayor Murphy abstained on this item due to a potential business
conflict;
CITY COUNCIL MINUTES January 24,2006
7. ADMINISTRATIVE REPORTS (Continued)
Discussion
Councilmember Dumitru asked about the gas tank issues with the Crown Victoria, recognizing
the problems with puncturing in rear end collisions.
Police Chief Bob Gustafson stated that the spare tire will be placed between the trunks entrance
and the gas tank. This is a CHP recommendation to prevent spontaneous fire in an accident.
The CHP consulted with the National Traffic Highway Administration in determining their
recommendation.
Mayor pro tem Cavecche asked about purchasing the vehicles with the City of Los Angeles' bid
City Manager John Sibley stated that there is a need for vehicles. It was not issue of lowest
price, but an issue of availability and the price was just a few hundred dollars higher than a bid
received about 18 months ago.
MOTION - Cavecche SECOND -
Smith AYES - Smith,
Ambriz, Cavecche, Dumitru ABSENT - Murphy ACTION:
1. Authorizedthe
purchase
of 14 Police Patrol Sedans for the Orange Police Department,including the ESP premium
care 100,000-mile warranty, from Wondries Fleet Group in the amount of$359,
478.2. Appropriated $458,
428 to thefollowing accounts from the unreserved fund balances of the funds shown
below:100-4021-472102 $
161,336 720-
5023-472102 $231,
092 355-4021-
471301 $ 55,000
355-4021-426700 $
5,000 355-
4021-427800 $ 3,000 355-
4021-447600 $ 3,000 Police
Vehicle Replacement, General Fund Police-
Vehicle Replacement, Equip. Replacement Fund Police-
Equipment, Federal Asset Seizure Fund Police-
Other Professional Services, Asset
Seizure Fund Police-Other Contractual Services, Asset Seizure Fund Police-Accessories, Asset Seizure Fund 3.
Authorized the City Manager
to declare the nine replaced vehicles surplus and dispose of them at
an auction.FISCAL IMP ACT:
CITY COUNCIL MINUTES January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
7.3 Report from Housing Manager - Second Amendment to Disposition aud Development
Agreement (DDA) with Orange Housing Development Corporation (OHDC)regarding
the housing project on West La Veta Avenue. (A2100.0 Agr-4123.2)
see Redevelopment Agency Minutes Item No. 7.1)
SUMMARY: OHDC has completed the construction of an affordable six-unit senior
rental housing project known as the Orange Rotary Senior Plaza. The estimated cost of the project
was 1,297,815. The actual cost was $904,450, which was funded with Agency Housing
Set-Aside loans totaling $300,156, a City HOME grant of $484,294, and a Rotary Club
of Orange contribution of $120,000. Given the project's cost savings of $393,365, OHDC is
now asking that the funds already expended by the Agency and City remain as permanent financing.
Staff is proposing a Second Amendment to the DDA to reflect
these changes.RESOLUTION
NO. 10052 A Resolution of the City Council of the City of Orange approving a Second
Amendment to Disposition and Development Agreement by and among City of Orange,
Orange Redevelopment Agency and Orange Housing Development Corporation Relating to La Veta
Avenue between Olive Street and Lemon Street and making
certain
findings.Discussion Mayor pro tem Cavecche had asked for a balance sheet of all funds in order to see what
has been set aside for Federal Housing Home Grants to determine what is in the account and
what the predicted expenditures have been for some of the other low income
housing costs.MOTION -
Ambriz SECOND - Dumitru
AYES Smith, Ambriz, Murphy, Cavecche, Dumitru
ACTION:Approved Resolution No. 10052
FISCAL IMP ACT: The unexpended Housing Set-Aside balance of $358,539.32 appropriated
to this project will be made available for future affordable housing projects. The City
Council authorized the transfer of the unexpended HOME balance of $154,825.91 for this project to
the Hoover Wilson II project on December 13,
CITY COUNCIL MINUTES January 24, 2006
7. ADMINISTRATIVE REPORTS (Continued)
7.4 Report from City Attorney - City Council policy for reimbursement of expenses incurred
in performing official duties. (C2500.D.6)SUMMARY:
As part of newly enacted legislation requiring city council members to receive ethics
training, city councils are required to adopt a written policy that specifies under what circumstances
and procedures city council members can be reimbursed for expenses incurred in the
performance of their official duties. In addition, the new legislation requires council members,
in limited cases, to provide brief reports on meetings attended. While the City has a reimbursement
policy in the Administrative Manual that meets most of the requirements of the new
legislation, it has never been formally adopted by the City Council at a public meeting.Minor
modifications to the policy were made to meet the requirements of the new law.MOTION -
Ambriz SECOND - Cavecche
A YES - Smith,
Ambriz, Murphy, Cavecche, Dumitru ACTION: Adopted Section 4.
13, Travel and Business Expense Reimbursements, of the Administrative Manual.FISCAL IMP
ACT: None.
8. REPORTS FROM CITY
MANAGER - None.9. LEGAL AFFAIRS 9.1
ORDINANCE NO. 17-
05 (SECOND READING) (Continued from Januarv 10. 2006)A2100.0 Agr-4818)
An Ordinance of
the City Council of the City Of Orange approving an Amended and Restated Development Agreement by
and between the City of Orange and Orange City Mills Limited Partnership, A Delaware
Limited Partnership, for modification of previously approved expansion uses for The
Block At Orange on property generally located west of The City Drive between Chapman Avenue and
Metropolitan Drive.Discussion Mayor pro
tem
Cavecche asked Mr. Brad Beyer, with the Police Department, about his impressions and opinions
of the site after his tour of such. She stated that it did not seem that all of the lighting
needed to be done at the same time, and some could be done sooner, and not tie in with the completion
of the parking structure. She stated that there is a need for security cameras on the entire
east side of the facility as well as the parking structure.
CITY COUNCIL MINUTES January 24,2006
9. LEGAL AFFAIRS (Continued)
Brad Beyer stated that he and several others from the City went out to the site. He states that
uniformity is needed in the parking lot for safety and to reduce crime. Incidentally, the areas in
which the light was low is where property crimes have occurred. Mills was very receptive to
boosting light levels in those areas. He will meet with lighting consultants. Regarding the
lighting on the east side of the parking lot, the lighting was very low as well as the area near
construction of the offramp.
City Attorney, David DeBerry addressed the lighting and security cameras and stated that under
the proposed language, the lots on the east side will have to be lighted by January 1, 2007. Thc
lots along Metropolitan Drive that are being impacted by the construction will not have to be
lighted until the construction ceases. He clarified that per the original agreement, Mills is still
responsible to bring the lighting up to the minimum requirements.
Councilmember Dumitru asked if the areas that are proposed for shared parking had been
checked for meeting the one-candle
requirement.Mr. Beyer responded that the lighting for the proposed shared parking did not meet the
one candle
requirement.Councilmember Ambriz asked why the lighting which was agreed to in the original
agreement has not been taken care
of.City Manager, John Sibley responded that the city now has the opportunity to sign
a development agreement that ensures that the lighting and security will be brought up to
standard.The cameras are for the entire area and will require the concurrence of Police Chief and the
City Manager. A certified lighting consultant will perform a study, as well as a peer review from
an equally certified expert in order to review the lighting in order to reach a level of confidence
that the job was done to a specific
standard.Councilmember Ambriz suggested that it would be good to get input from community
members,particularly those who frequent The
Block.Councilmember Dumitru asked for confirmation that the cameras will have capability to work
in low light. He also asked if the security cameras will help to reduce the number of
officers needed at The Block - or is it to be used more as a tool to capture and prosecute.
Police Chief, Bob Gustafson confirmed that the cameras would have the capability to work in
low light. He stated the cameras are intended for possible reduction in police force at The Block
as well as a tool to capture and prosecute successfully.
CITY COUNCIL MINUTES January 24,2006
9. LEGAL AFFAIRS (Continued)
Mayor pro tem Cavecche stated that if OCT A is not maintaining high level of lighting, the city
needs to make sure they do. She stated that the wording needs to be changed in the Agreement
to state that it will be the Police Chief AND the City Manager not OR. In reference to the
financial district, she stated that using 2005-2006 as a baseline of costs may indicate that the
city is happy with three quarters of a million dollars as police costs at the Block, which is not
a baseline she is happy
with.Councilmember Smith concurred that the cost for security at The Block is way too high and
also agrees that community input would be beneficial. She stated that the fact that police
security,without lighting and security cameras costs about $760,000 per year is evidence that
something has to be done as soon as possible to cut costs. She stated that she is not willing to wait
until January I, 2007 to implement those improvements, and incur costs again of $760,000.
She stated that if the baseline can remain at that amount with additions of cars, the deck,
and condominiums, it will somehow balance out if the amount does not go higher. She is
extremely concerned about the high cost of security because it comes directly out of the sales tax
revenue.She is in favor of bringing the lighting equipment up to the higher standard that it was
supposed to be at when the project was approved immediately and the camera equipment in place as
soon as
possible.Councilmember Dumitru inquired about a budget for extra police services at The
Village.Mr. Sibley stated that there is no line item budget for The Village. The police respond
as
needed.
Speakers Mike Merino, Address on File, stated a concern in hiring consultants to study the lighting
and
cameras.
Discussion Mr. Sibley stated that the lighting study will be paid for by The Mills. The peer review
study will be paid for by the
city.Counci1member Ambriz asked about a report showing that there had been a decrease in
yearly expenditures at The Block to about $600,000 a year. He asked for clarification on that at a
future
date.Mr. Sibley stated that he will look into that but it has been verified with the Finance
Director that the average has been between $740,000 and $760,000 over the last five years in
police protection at The Block. He stated that a big reason The Block was first completed was in
an effort to revitalize that area. The sales tax from this project is around $1,300,000. Taking
all expenses from that amount, the city currently nets a little over $15,000 to the General Fund
and 550,000 to the Redevelopment funds. He stated that the new development phase of The
CITY COUNCIL MINUTES January 24, 2006
9. LEGAL AFFAIRS (Continued)
is solely market driven, with no subsidy from the city, and no tax increment from the city. The
new development will pay for itself and pay for any additional policing costs because of the
Financing District. There will be additional sales tax, and property tax available to the city. The
current property tax split with The Block will expire in 2011 or at $6,400,000 (whichever comes
first), and then the entire amount of property tax will come to the city. The current property tax
subsidy will expire in 2019 and the entire amount will accrue to the city. The long term potential
for the area is tremendous and it has revitalized the surrounding area.
Mayor Murphy stated that at the time of the original approval, nobody intended that there would
be such an expense for police security. Whether the new agreement occurs or not it does not
change the fact that $760,000 will continue to be paid to maintain security there. With the new
agreement, the situation is better because it gives additional benefits to the city on the property
tax side, potential for sales tax and the opportunity for better quality of living environment and
additional sources of shopping and retail with no additional encumbrances to the city.
Additionally it puts a cap on what the city will spend based on a mechanism in place with
the Financing District. The Block is a big cause of synergy in the area. There is a high level of
dollars invested privately in that area. He stated that he could only support the agreement with
some modifications. I) The agreement needs AND in place of OR as discussed earlier. 2)The
deadlines for lighting and camera installation are not extended to the time of the new
construction. The lighting in areas unaffected by construction or OCT A activities need to be
remedied within a normal time period that any entity/organization would be required to make
that change. 3) A more expedited plan is needed for introducing some digital cameras on a test
basis for final analysis.
He stated that the issues regarding the lighting and cameras improvements and additions should
happen regardless of additional agreements, and should not be constrained or enhanced because
of this particular agreement.
Mayor pro tem Cavecche stated that she would need to see the baseline dropped to $500,000 in
order to support the agreement.
City Attorney, David DeBerry in response to a question from Mayor Murphy, stated that based
on the Financing District methodology of payment Mayor pro tem Cavecche's request to drop
the baseline to $500,000 is legally enforceable. Financing Districts can be utilized to pay police
costs, and the amount can be set by agreeing parties
Elizabeth Link from the Mills agreed with the changes in wording from OR to AND. The
lighting consultant has already been hired and she will be scheduling a meeting with Mr. Beyer
to upgrade the lighting. It will take some time to design, approve, bid and build. The matter
with OCTA has been resolved and that can now get expedited. She stated that Mills cannot
afford to put a cap of $500,000 on the baseline for police services.
CITY COUNCIL MINUTES January 24,2006
9. LEGAL AFFAIRS (Continued)
Ms. Link stated that the language can be changed to state that Mills will use the best efforts to
improve the lighting level as soon as reasonably possible, no later than January 1, 2007. This
also requires design of upgrade, approval, bid and construction. Regarding the digital camera,
Mills will work in the areas that are not impacted by construction first, and one of those areas
could be used as a test area. Ms. Link stated that if they can work with the Police Chief on this,
it can be done in stages.
Ms. Link re-stated that the if the City Council wants to move forward with requested cap
of 500,000 on police services, Mills will opt out of the agreement, and all other agreements
would end at that time. She states that it is a financial consideration that Mills cannot bear. She
stated that the camera equipment should be bought all together to assure the system is well
integrated.Mills will use best efforts to proceed with the lighting in existing lots as soon as the design
is approved and the contractor has been hired. Some lighting will be put in the south lot
very quickly, and some temporary lights will be put up right now, and the lot will also be
re-striped.Councilmember Smith asked if Mills could meet the City halfway on the cost
of
police protection.Ms. Link stated that she believes the increase in property taxes received by the
project going forward is significant, and Mills cannot accept any
additional costs.Councilmember Dumitru in reference to the Financial District, asked if it is the sole
burden of the Mills Corporation to make those payments or is it passed down to tenants
and homeowners.Ms. Link stated that it is a property assessment that will be passed on to the property
owners and it is split between the tenants on a lease by
lease basis.City Attorney, David DeBerry clarified that the property owner is the party obligated to
pay the cost of the Financing District, and as in any financing district the developer or
property owner may determine, based upon market, if they can pass the cost down to
the tenant.Mr. Sibley, in response to Mayor Murphy, clarified that the threshold is a hard number
based on 2005-06 police costs and at the end of the fiscal year the base will be known
and any dollar amount over the base amount will be applied to
the Assessment District.Ted Reynolds, Assistant City Attorney,. reviewed changes made to the
agreement. 1) The language was changed from OR to AND. 2) Open parking lots that are not
affected by the construction of the AMC parking structure will meet the minimum illumination
standard as soon as reasonably possible, but not any later than January 1, 2007. 3) The developer, at
its cost will install a on-site mock-up of the proposed video camera system. Prior
to approval of the plans,the mock up must be installed, giving the City Manager and the Police
Chief 10 days to review it and approve or disapprove. The camera system will not be
completed until the completion of the parking structure, and the parking structure cannot be used until
the
CITY COUNCIL MINUTES January 24, 2006
9. LEGAL AFFAIRS (Continued)
Mr. Sibley stated that he would like the camera system in as soon as reasonably possible. With
the development agreement, this is an opportunity to get a state of the art camera system in to
meeting the security measures. The mock up, the specs, the bidding, will take several months.
The deck needs to be completed, and the security cameras in before occupancy of the parking
deck. He is satisfied with the language.
Police Chief, Bob Gustafson stated that his preference is to have the camera system in as soon as
possible. When talking to the representative from Mills, he is not clear as to when the deck will
be completed. He would like to see something go in before completion of the deck.
Councilmember Ambriz states that proposed agreement implies that the need for security will be
fulfilled by the developer. He asked if the in-house security provided at The Block is up to
par.Police Chief, Bob Gustafson stated that police services will be provided by the Orange
Police Department, and the developer will look at industry standards regarding security
personnel qualifications and the number of security personnel needed. Regarding the quality of
the current security provided by the Mills, the Police Chief stated that it could be improved. It is
a collaborative effort between the Police Department and The Block
security.Counci1member Dumitru asked for clarification that the cameras will be installed and
operational when the parking structure is complete. Because there is no particular date for completion, he
is concerned installation will be pushed back, and the City will continue to pay for police
services.The agreement states that Assessment District will not commence any earlier than
the completion of the construction of the parking structure. For another fiscal year, the city
will incur additional costs for
policing.Mr. Sibley clarified that the city will continue to pay for the current arrangement at The
Block until redevelopment occurs. With redevelopment, the police costs will be assessed against
the Assessment District. The language in the development agreement does state that within 60
days of the agreement Mills will begin the bid process. The language is written so that cameras
have to go in for project to be complete. If the development agreement goes forward, and based
on the language in the agreement, the city will assess the additional police costs over and above
the 2005-06 base to the Assessment District. However, the Assessment District cannot
begin until proj ect
is started.Mayor pro tem Cavecche stated her appreciation to Mills and staff for the effort put
into this.She appreciates how the area has improved from what it was. She states that police
costs have always been an issue for her. There should be a benchmark for the revenue for what the
city is paying and what the development brings in. It is not where she would like to see it.
The issue for her has always been the ratio of cost
CITY COUNCIL MINUTES January 24, 2006
9. LEGAL AFFAIRS (Continued)
Councilmember Smith stated her agreement with Mayor pro tem Cavecche regarding the costs of
police services. She was hoping to come down to around $625,000 and split the difference but
she hopes that this comes out as a win-win with more retail space. She feels $750,000 on
police costs is high but she recognizes that police cost is not the only monetary figure in this
project.There is potential for this site. It is key to development in the west. She stated that it
is imperative that the lighting be corrected as soon as possible, and that the camera system
is
installed.Mayor Murphy stated that with or without the new agreement, the city is responsible for
health,safety and welfare at The Block. It's a safety issue. Looking at it from a business
perspective,this is an opportunity to increase sales tax, and property tax. It is a continuance of an
investment in an area that has shown synergy since The Block first opened. It has helped
several businesses in the surrounding areas and drawn other business to the area. Secondly, in
this agreement, an absolute cap can be put on the amount of money spent on police safety at
The Block. He supports the agreement with assurances from staff and The Block that there will be
a managed cap on the expense, and in looking at the future increase in tax increments going to
the City of
Orange.Councilmember Dumitru expressed disappointment with the negative responses from Mills.
He stated that setting a number to be reimbursed to the city to make up for differences for policing
is a good idea; but he still feels it is a very high amount. He would be interested to know the
cost to Irvine to police The Spectrum, as well as other large shopping areas. He is disappointed
that cameras cannot go in right now. Everything seems to be tied to completion of the
parking structure. He expressed hope that everything is still on target for January 1,
2007.Councilmember Ambriz stated that this project was a vision of a past council with a goal
of making the west end the economic engine that it should be. It is questionable if that has
been achieved at The Block itself. But looking at the surrounding areas, it has absolutely
been successful. $750,000 a year breaks down to $125 per hour based on a 16 hour day, 365 days
a year, which is a small investment. He stated that Mills has done a good job listening to what
the city needs and wants. The security cameras and security staff trained is an investment in our
city with a goal of bringing in new
business.Council thanked staff for hard work and diligence, the Police Chief and Brad Beyer for
assuring a safe environment at The Block, and City Manager, John Sibley, and the City
CITY COUNCIL MINUTES J anllary 24, 2006
9. LEGAL AFFAIRS (Continued)
ORDINANCE NO. 17-
05 An Ordinance of the City Council of the City Of Orange approving an Amended and
Restated Development Agreement by and between the City of Orange and Orange City Mills
Limited Partnership, A Delaware Limited Partnership, for modification of previously approved
expansion uses for The Block At Orange on property generally located west of The City Drive
between Chapman Avenue and Metropolitan Drive with the substitute language mutually agreed upon
and submitted to
council.MOTION - Murphy
SECOND - Ambriz AYES -
Smith, Ambriz, Murphy NOES - Cavecche,
Dumitru Moved that Ordinance
No. 17-05 be read by title only; and same was approved and adopted by the preceding
vote; with changes as discussed.MOTION - Murphy
SECOND - Ambriz AYES -
Smith, Ambriz, Murphy,
Dumitru NOES - Cavecche Authorized and directed
City staff to
undertake proceedings for the formation of a Financing District for the purpose of funding
the cost of salaries and benefits for police personnel services incurred or to be incurred by
the City during Fiscal Year 2006-07 at The Block at Orange and subsequent fiscal years in excess
of what it costs the City to pay salaries and benefits for police personnel services assigned to the
Project Site during Fiscal Year 2005-06.10. RECESS TO THE
MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED
SESSION The City Council recessed
at 9:30 p.m. to a Closed Session for the following purposes:a. Public Employee Performance
Evaluation pursuant to Government Code Section 54957 Title: City Manager b.
Conference with Legal
Counsel - Anticipated Litigation Significant exposure to litigation pursuant
to Government Code Section 54956.9(b) - One C2 c. To consider andtake 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.
CITY COUNCIL MINUTES January 24,2006
7:00 P.M. SESSION
12. PUBLIC COMMENTS
Patrick Hardy, Chapman University Student, asked the Council to join the National League of
Cities.
13. PUBLIC HEARINGS
13.1 APPEAL NO. 0504-05; AN APPEAL OF PLANNING COMMISION
APPROVAL OF CONDITIONAL USE PERMIT NO. 2540-05, MINOR SITE PLAN
REVIEW NO.040S-05, DESIGN REVIEW COMMITTEE NO. 4031-05
AND DENIAL OF VARIANCE NO. 2151-05, MILLER
AUTOSPORTS - APPELLANT CRAIG
MILLER.A4000.0 APP-504-05)Time set for public hearing to consider an appeal, by Craig
Miller, of the Planning Commission's approval of Conditional use Permit No. 2540-05,
Minor Site Plan Review No. 0408-05 and Design Review Committee No. 4031-05
granting a request to establish a Used Car Sales business including
related site improvements. Additionally, an appeal of the Planning Commission's denial of Variance No. 2151-05
related to a request to deviate from the City's Sign Regulations to allow for a pole
sign in excess of the maximum height, to exceed the maximum number of
freestanding signs and to exceed the minimum separation requirements for freestanding signs
on the same parcel located at 1935 East Chapman Avenue.NOTE: This project
is categorically exempt form the provisions of the California Environmental QualityAct
per State CEQA Guidelines Section 15303 (Class 3 - Exemption).NOTE: Mayor Murphy abstained on this item
due
to a potential business conflict; and left the dais.Reason for Appeal: "The Commission
failed to consider the unique nature of the property directly adjacent to the Chapman off ramp
of the 55 Freeway. Due to property constraints the additional height and sign are needed
for visibility. Options are limited for utilizing the most beneficial and visible locations
for signage, thereby creating a land-related hardship. At least four neighboring
properties, under similar zoning classification, already use pole signs and exceed height limits. Abandoning
Chapman drives in public right-of-way is a city request, not
applicant's responsibility. Requiring 8-12 foot King Palms significantly
exceeds
code required 24 inch box. Both conditions create financial hardship for applicant."Discussion Alice
Angus, Director of Community Development reviewed the Staff Report and the reason for
the appeal. Planning Commission approved conditional use permit with conditions attached to it.
Planning Commission denied additional signs and sign height. The applicant is appealing
the variance regarding signage. Additionally, a condition related to the application required the applicant to
fill in the curbs and driveways along Chapman Ave. Although applicant has done that work, he feels it should
be
CITY COUNCIL MINUTES January 24,2006
13. PUBLIC HEARINGS (Continued)
Mayor Pro tem Cavecche asked for clarification on the requirement for applicant to fill in the
curbs. She also asked if there is an easement issue with Wayfield. Appellant mentions a
redevelopment program. She asked if there is a program for redevelopment in the area of this
business.
Alice Angus, Director Community Development stated that the condition to fill in the curbs
came from Public Works due to the proximity to the 55-freeway, and the location of the
curb cuts. Public Works requested that the fill-in as a safety and security measure for use as
a car dealership. There is no easement issue
with Wayfield.Jim Reichert, Economic Development Director stated that there is a
redevelopment program known as the West Chapman Reinvestment Program and the boundaries for participation
in that program are the city limits on the west and Batavia Street on
the east.Discussions have taken place with Mr. Miller and he has been told that if, in the future,
he would begin to sell new cars, there is an Automobile Dealership Rehabilitation Program
that could potentially apply to
this property.Councilmember Dumitru stated that he saw no problem with the 15 foot sign,
considering the size of other signs in the area. He asked for the size on the secondary sign. He also asked
if the requirement to fill in curbs was also required of the Arco Station on Katella when
that facility
was remodeled.Alice Angus, Community Development Director stated that the secondary sign is 4 feet
high and 6 feet in width and is considered a free-standing sign. She stated that Arco was
not required to fill in the curbs on Katella, as it was
a different configuration.Councilmember Ambriz asked how many businesses have actually taken advantage
of the West Chapman Reinvestment Program. He inquired as to the size of other signs on
Chapman such as the Midas sign, and was informed that it is comparable to what appellant is asking
for. It is important to him that the city be business friendly and work with the small
business owners in order for them
to be successful.Jim Reichert, Economic Development Director stated that no businesses have
taken advantage of the West
Chapman Reinvestment Program.Peter Wittingham, Curt Pringle and Associates 2400 E. Katella Avenue, Anaheim
stated that he has been working with Mr. Miller throughout the planning process. He reviewed
the history of the purchase of the property and upgrade of the property. There is an existing sign
pole on the southeast corner of the property, and Mr. Miller would like to reface the existing
sign for that sign pole. There are several challenges for this property. It is a
severely landlocked site,severely restraining what can be done on the property after the required
set backs and landscaping factored in. It is obscured by the Self Storage facility located
between the off-ramp and the property. A standard code compliance sign would significantly
CITY COUNCIL MINUTES January 24,2006
13. PUBLIC HEARINGS (Continued)
ability to fully market the site, and is the reason for request of a variance. At a height of 25 feet,
the sign will not be out of character as there are at least 3 to 4 signs taller than this less than 500
feet from the site. Mr. Miller is also seeking a second sign at the southwest corner of the site
for frontage on Chapman.
Craig Miller, 12236 Circula Panorama, Santa Ana, stated that he has made every attempt to be a
good neighbor and make things nicer. The driveway abandonment issue was brought to him by
the city and the plans have been made around that, but bollards would have accomplished the
same goal with the addition of landscaping in front of it. The driveways have been filled in, in
order to progress on the project. The curb fill-ins leave the facility with no access whatsoever
to or from Chapman and the property must be entered by a small easement from the storage
facility.He is asking for a reimbursement for the costs incurred in removing the driveways. He
stated that early on he asked for use of the West Chapman Reinvestment program and it could
possibly have been used for this. The conditions state that palm trees had to be palm trees at 8-
12 feet,which is a very expensive tree. He would like to put in 24-inch box trees of
any variety. Mr.Miller clarified that he has no plans of putting in a new car dealership, as the property
is
not big enough.Councilmember Smith asked about the neighboring land and asked if he
had thought of negotiating use of that land with the adjacent property owners. She also asked if
he was aware of the code requirements for signs and landscaping that may be binding on the
property before he
purchased the property.Mr. Miller stated that he has use of a little 10x15 strip on Wayfield in addition
to an easement.Neighboring landowners have said he could landscape some of that property.
With regard to code requirements, Mr. Miller stated that there is an existing sign pole and
an existing sign cabinet, and he thought he could utilize existing pieces. The sign pole has
never
been taken down.Councilmember Ambriz stated his desire be a good partner on this project.
He supported the idea of the Applicant having discussions with neighbors to see if they can help
Mr. Miller with the property issues
in some way.Mr. Reichert stated that the amount of money in the West Chapman
Redevelopment Program is 500,000 and has not been used. The program started in 2002 and rolls over every
year, with no dollars added to it. There are components to the program, including matching funds
of 50%for signage and landscaping, and the match can be forgiven over time. There is also
a straight loan component. He clarified that the intention of the West Chapman Reinvestment
Program is to provide assistance to business and it would be difficult for a business to apply for
work that has
CITY COUNCIL MINUTES January 24,2006
13. PUBLIC HEARINGS (Continued)
Councilmember Dumitru asked about other signs in the area, particularly the Chapman Storage
sign, in relation to the 20 foot sign.
Ms. Angus stated that code allows for one free standing sign of 15 feet, so the applicant would
be varying from height, size and quantity along Chapman. More than one sign and a taller sign
is allowed by a variance.
Discussion took place regarding the West Chapman Redevelopment Program and the possibility
of expanding that program for use of the small business owner. There have been initial
discussions about the possibility of expanding the limits of the program to include the entire
redevelopment area. Mr. Reichert stated that although $500,000 is a lot of money it was not
enough to entice one or two potential applicants to take advantage of it.
Councilmember Ambriz suggested discussion as a council to look into the possibility of
increasing funds. He also noted that the Adrays sign on West Chapman is in need of attention.
Mayor pro tem Cavecche stated that she is fine with the signs, that businesses need to be seen.
The curbs are already done, and the fill-in was required as a safety
issue.City Attorney David DeBerry stated in order for the city to reimburse for the curb fill-
in, the expenditure would have to serve some public purpose or it may be considered a gift
of public funds. He stated that the appellant had the opportunity to appeal the requirement
before he actually installed
the fill-in.Councilmember Smith suggested she would be in favor of the appellant having two
signs on the property but she is not in favor the tall sign. The business is not right next to
the freeway, and the business is not dependent on freeway business. It is a busy intersection with a
lot of traffic.She would be in favor of the 4x6 sign as well as another sign as part of the variance,
but not up to 26 feet. By the fact that the curb has already been built it indicates the applicant'
s intention to pay for it. She stated that she would leave the decision on the trees
to the applicant.Councilmember Dumitru stated that he has no problem with the requested
signage. The large sign will actually be dwarfed by other signs on the street. He supports the request
on the trees;but cannot support the reimbursement of the cost for the curbs based on the
information from
the City
Attorney.Council Action
MOTION - Cavecche SECOND -
Ambriz A YES - Smith, Ambriz, Cavecche, Dumitru
ABSENT - Murphy Moved
to deny the appeal of Condition No.1 0, which requires the removal of driveways along Chapman
Avenue, and Condition No.7, noting that the applicant is free to put in any 24 inch box
tree.
CITY COUNCIL MINUTES January 24,2006
13. PUBLIC HEARINGS (Continued)
MOTION - Cavecche SECOND -
Dumitru AYES - Ambriz,
Cavecche, Dumitru NOES - Smith ABSENT -
Murphy Moved to
approve the request
for a Variance to deviate from the City's Sign Regulations to allow for a pole sign
in excess of the maximum height, to exceed the maximum number of freestanding signs and to exceed
the minimum separation requirements for freestanding signs on the same parcel.14. PLANNING
AND ENVIRONMENT - None
15. ADJOURNMENT The City Council adjourned
at 10:
05 p.m. The next Regular Council Meeting is scheduled for February 14, 2006.Declaration of City
Clerk, Mary E.
Murphy, declaring posting of City Council agenda of a regular meeting of January 24, 2006 at
Orange Civic Center kiosk, Police facility at 1107 North Batavia, Shaffer Park; 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 City Clerk's Office.i~tMURPH;'-<~~CITY CLERK flt~1:!~
MAYOR