HomeMy WebLinkAbout9_13_2005 - Council MinutesI
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APPROVED BY THE CITY COUNCIL ON SEPTEMBER 27,2005
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING September 13, 2005
The City Council of the City of Orange, California convened on September 13, 2005 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
I.1 INVOCATION
Given by Pastor Ron Martin, St. Paul's Lutheran Church
I.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Jon Dumitru
I.3 ROLL CALL
PRESENT - Smith, Ambriz, Murphy, Cavecche, Dumitru ABSENT -
None.Io4 PRESENTATIONS/
ANNOUNCEMENTS/ INTRODUCTIONS Presentation recognizing
Library Card Sign-Up Month, by Library Services Director Nora
Jacob.Orange
County Transportation Authority (OCTA) presentation on Measure M funded projects.
Mr. Art Leahy, CEO of OCT A gave a report on the status of projects funded by
the Measure M Yz-cent sales tax.
Council discussion on the OCT A presentation included the quarterly event offering free
rides on the Metrolink train to inform citizens of its availability; whether the money
allocated for transit, streets and roads could be used to establish quiet zones; an
explanation of the term design build used in Mr. Leahy's presentation; the fact that the
money collected thus far has been spent and any projects planned for the future will
require the renewal of Measure M by the voters in a future election; and that if a renewal
is approved, the money would not be available to fund projects until the year 2011.
Presentation to the Orange County Red Cross Hurricane Katrina Relief Fund.
Presentation to members of the General Plan Advisory Committee in appreciation of their
service to the City and participation in the Comprehensive General Plan Update project.
PAGE 1
CITY COUNCIL MINUTES September 13, 2005
PRESENT A TIONS/ ANNOUNCEMENTS/ INTRODUCTIONS (Continued)
Announcements -POW/
MIA Recognition Day event on Saturday, September 17'h, at
9:00 a.m. in front of City
Hall.Poker
Run Motorcycle Ride on Sunday, September 18th, to benefit the Senior Center and Meals
on Wheels Program.Inner-
Coastal Water Shed Clean Up Day on Saturday, September 17'h at Grijalva Park
and Hart Park.
Rotary Clubs and Orange YMCA held a food and clothing drive the past weekend to
benefit the Hurricane Relief Fund.
Football Game on Saturday, September 10th between Orange City rivals Orange High
School and El Modena High School. Councilmember Ambriz noted this inter-
city football game was historically known as the Mayor's
Bowl.2. PUBLIC
COMMENTS Jerome Ryan, 429 N. Lemon, spoke on alleged code enforcement violations in
his neighborhood; and asked for more funding for the Code Enforcement budget.
He displayed photos ofthe alleged
violations.Jen'et Kreitner, Second Harvest Food Bank, spoke on their October food drive;
and Operation Orange County to assist Hurricane
victims.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 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 Request Council Confirmation of warrant registers dated August 18, 25,
and September 1,
2005.ACTION:
Approved.3.2 Request approval of City Council Minutes, Regular Meeting of August 23, 2005
and Adjourned Regular Meeting of August 23, 2005. (C2500.
Do4)ACTION:
Approved.Page
CITY COUNCIL MINUTES September 13, 2005
3.CONSENT CALENDAR (Continued)
3.3 Consideration to waive reading in full of all ordinances on the Agenda.
I ACTION:Approved.
AGREEMENTS
REMOVED AND HEARD SEPARATELY)
304 Agreement Between City of Orange and Miss Orange Scholarship Association.
A21 00.0 Agr-0008.
V)SUMMARY: An agreement between the City of Orange and the Miss City of
Orange Scholarship Association for support of the annual Miss Orange Pageant for $5,000
per year for scholarships for Miss Orange and
runner-ups.Discussion - Councilmembcr Ambriz commented the amount of City support for
this organization is half of what it once was. He suggested that the Mayor could send
letters to educational institutions asking for donation of either revenue or scholarship funds
to the Miss Orange
Association.Mayor Murphy agreed to send letters to Orange educational
institutions.MOTION - Ambriz
SECOND - Murphy A
YES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved approval
of the agreement between the City of Orange and the Miss City of Orange Scholarship
Association and authorized the Mayor and City Clerk to execute the agreement on
behalf of the City.FISCAL IMP
ACT: There are sufficient funds budgeted for Fiscal Year 2005-2006 in account
number 100-0101-427800-7016 (City Council - Contractual Services - Miss
Orange Pageant).
3.5 First Amendment to Agreement No. AGR-4401 with Cotton/Bridges/Associates,
a Division of P & D Consultants, to expand the scope of work and budget of
the comprehensive General Plan Update to include an Economic Development
Element and expanded fiscal analysis of land use focus areas. (Continued fromAu!!ust
23.2005) (A2100.0 A!!r-4401.1)I See related Orange Redevelopment Agency Minutes Item No.
7.1.SUMMARY: The City of Orangc 2003-2004 to
2009-2010 Capital Improvement Program includes the General Plan Update as Land Use Project
No. 9801. The proposed project involves a complete update of the City's 1989
General Plan, including the integration ofthe East Orange General Plan into a
single, comprehensive
CITY COUNCIL MINUTES September 13, 2005
3. CONSENT CALENDAR (Continued)
document. Preparation of an environmental impact report for the updated General Plan is
also included in the work effort. The Economic Development Department has requested
that an Economic Development Element be included in the updated General Plan to
ensure that an economic development strategy is integrated into the City's long-
range comprehensive planning efforts. To achieve a more thorough understanding of the
fiscal implications of potential land use changes and their relationship to the
Economic Development Element, the Economic Development Department has also requested
an expanded fiscal evaluation of these changes. Execution of the First Amendment to
the Agreement is contingent upon the Redevelopment Board approving a
budget appropriation in the amount of $93,579.00 under a companion Agency Agenda
Item.ACTION: Approved an amendment to the City's existing agreement
with Cotton/Bridges/Associates, a Division of P & D Consultants, to expand the scope of
the fiscal analysis of land use alternatives contained in the existing agreement and include
the preparation of an Economic Development Element in the scope of work and budget
for the comprehensive General Plan update in the amount of $93,579.00; and authorized
the Mayor and City Clerk to execute on behalf of the
City.FISCAL IMPACT: The $93,579.00 needed to cover the cost of the
Economic Development Element is available in account number 943-9800-
485100-9801. The cost to prepare the fiscal analysis is $106,150 (including a
10% contingency) of which 51,500 is already included in theoriginal agreement
with Cotton/Bridges/ Associates.The cost to prepare the Economic Development Element is $38,
929 (including a 10%contingency). Therefore, the net increase to prepare
the Economic Development Element and related fiscal
analysis is $93,579.3.6 FY 2005-06 Animal Control Services Contract with the
County of
Orange. (A2100.0 Agr-0135.R)NOTE: Councilmember Ambriz abstained on this
item due to
a possible conflict with his employment.SUMMARY: The City of Orange contracts with
the County of Orange for animal control field and shelter services. The term of this annual
renewal is July 1,2005 through June 30, 2006.
The contract amount is $366,798.ACTION: Approved the proposed contract for
animal control services between the City of Orange and the County of Orange in the amount
of $366,798 and authorized the Mayor and City Clerk to execute the
agreement on behalf of the City.FISCAL IMP ACT: There are sufficient funds
budgeted for Fiscal Year 2005-2006 in account
number 100-
0000-427100-
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CITY COUNCIL MINUTES September 13, 2005
3. CONSENT CALENDAR (Continued)
3.7 Award of Consultant Services Agreement to Merit Civil Engineering for
Engineering Design Services for Project No. SP-3530, Lincoln
Avenue Rehabilitation. (A2IOO.0
Agr-4749)SUMMARY: This contract authorizes Merit Civil Engineering to
perform design engineering services for preparing a bid schedule, plans, and contract
specifications for the rehabilitation of Lincoln Avenue from Berkeley Street to
Tustin Street.ACTION: Awarded the contract in the amount of$68,950 to Merit Civil
Engineering and authorized the Mayor and City Clerk to execute on behalf of
the City.FISCAL IMP ACT: Funds are budgeted and available in the
following accounts:272-5011-483300-3059 $26,500 Gas Tax
Lincoln Ave: Orange-Olive to Palm 272-5011-483300-3060 $
19,450 Gas Tax Lincoln Ave: Palm to Tustin 272-
5011-483300-3061 $23,000 Gas Tax Lincoln Ave: Glassell to Orange-
Olive 3.8 Award of Consultant Services Agreement to Kabbara
Engineering for Engineering Design Services
for Project No. SP-3533, Sycamore Avenue Reconstruction and
Sewer Improvements. (A2100.0 Agr-4750)SUMMARY: This contract authorizes Kabbara Engineering
to perform Design Engineering Services for preparing a bid schedule, plans,
and contract specifications for the rehabilitation of Sycamore Avenue from Main Street to Batavia
Street.ACTION: Awarded the contract in the amount of $38,700 to Kabbara
Engineering and authorized the Mayor and City Clerk to execute on behalf
of the City.FISCAL IMP ACT: Funds
are budgeted and available in the following accounts:
310-
9645-483300-3012 $36,000 CDBG: Sycamore Ave Reconstruction 310-9645-483200-5505 $
11,000 CDBG: Sycamore Ave Sewer
Improvements BIDS 3.9 Approve plans and specifications and authorize advertising
for bids for Reservoir 2A Slope Remedial construction. (C2500.P)SUMMARY: Plans and
specifications have been completed for Reservoir 2A
Slope Remediation, and the project is ready to be advertised for bids.
The preliminary engineering cost estimate is $100,000.00.ACTION: 1)
Approved plans and specifications and authorized
advertising for
CITY COUNCIL MINUTES September 13,2005
3. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Funding for this project with the recommended appropriation is:
601-8011-484400-8303 $100,000.00 Reservoir
2A Slope Restoration Staff may request an additional appropriation when returning to Council
for approval to award the construction contract when exact costs of the construction
project
can be identified.REMOVED
AND HEARD SEPARATELY)3.10 Bid No. 056-09; SP-3531; The City of Orange
Civic Center Finance and Public Works Building Offices Interior Painting. Approval
of plans and specifications, and request for authorization to advertise
for bids. (C2500.M.5)SUMMARY: Plans and specifications have been completed for
The City of Orange Civic Center Finance and Public Works Building Offices Interior
Painting. The project is ready
to beadvertised for bids.Discussion - Mayor pro tem Cavecche indicated that her
comments addressed both Items 3.10 and 3.11. She asked whether the funds could be used to
purchase smoke alarms for the safety of the employees. She commented on the need to
address life safety and liability issues first
before paint and carpeting.City Manager, John Sibley responded that steps have been taken to
improve the safety of the buildings~intercom system, fire alarm, practice of safety plans,
and that the paint and carpet would improve the livability of the work environment,
noting that carpet does in fact address safety. He stated that the Public Works and
Finance buildings do have smoke alarms, and he would provide the Council with a report
on a smoke detector system along with what can be done minimally to address safety
issues in
the Civic Center buildings.Council discussed the matter of addressing short term safety
and livability issues for employees and citizens versus long range plans
for the Civic
Center.MOTION - Cavecche
SECOND - Smith AYES - Smith, Ambriz, Murphy, Cavecche,
Dumitru Moved approval of plans and specifications and authorized advertising of bids for
The City of Orange Civic Center Finance and Public Works Building Offices
Interior
Painting.FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and
are available in the following
account:725-5028-481200-9811 $44,
000 (Major
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CITY COUNCIL MINUTES September 13, 2005
3. CONSENT CALENDAR (Continued)
REMOVED AND HEARD SEPARATELY)
3.11 Bid No. 056-10; SP-3532; The City of Orange Civic Center Finance
and Public Works Building Offices Carpet Replacement. Approval of plans
and specifications,and request for authorization to advertise for bids. (C2500.
M.5)SUMMARY: Plans and specifications have been completed for The City of
Orange Civic Center Finance and Public Works Building Offices Carpet Replacement. The
project is ready to be advertised
for bids.Note: See Item 3.
10 discussion.MOTION -
Cavecche SECOND - Smith
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved
approval of plans and specifications and authorized advertising for bids for The City
of Orange Civic Center Finance and Public Works Building Offices Carpet Replacement.
FISCAL
IMP ACT: Funds are budgeted in the Capital Improvement Program and are available
in the following account:725-
5028-481200-9812 $132,000 (Major
Building Improvements)REMOVED AND
HEARD SEPARATELY)3.12 Santiago Creek Bike Trail Bridge, SP-3286B; Bid No. 056-
11; Approval of Plans and Specifications and Authorization to Advertise
for Bids. (C2500.N)SUMMARY: The plans and specifications for the renovation
of Santiago Creek Bike Trail Bridge Bid No. 056-11 are complete and the
project is ready to bid.Discussion - Councilmember Ambriz asked for a report on the
Hart Park field renovation proj ect being preempted
for this proj ect.City Manager, John Sibley explained that a shift of priorities
occurred to use these specific TEA federal funds for this key segment of the bike
trail, resulting in the deferment of the
Hart Park field
renovation.MOTION - Ambriz
SECOND - Cavecche AYES - Smith, Ambriz, Murphy, Cavecche,
Dumitnt Moved approval of plans and specifications and authorized advertising for
Santiago Creek Bike Trail Bridge Bid No.
056-11.FISCAL IMP ACT: Sufficient funds are available in the
following account:550-7021-485100-6102 Santiago Creek
Bike Trail
CITY COUNCIL MINUTES September 13,2005
3. CONSENT CALENDAR (Continued)
3.13 Rejection of Bids - Bid No. 045-45; SP-350I; Police Headquarters
Heating,Ventilation, Air Conditioning (HV AC) System Renewal, Phase I, and
Authorization to Re-advertise for Bids. (
C2500.K)SUMMARY: The City received two (2) bids with the low bid for a contract
total of 377,000, which was higher than the current $314,
000 budget.ACTION: Rejected all bids received and authorized the re-
advertisement ofthis project.FISCAL IMPACT: Funds are budgeted in the Capital Improvement
Program and are available in
the following account:725-5028-481200-9823 (Police HQ
HV AC System
Renewal) $314,000 CLAIMS (C3200.0)3.14 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.
Gregoria Bugarin b. County of Orange
c. Farmers Insurance Group/
Edward Imfeld d. Leonel O.
Marroquin e. V incenz C. Schultz ACTION: Denied Claim(s) for damages and
referred
to City Attorney and Adjuster.CONTRACTS 3.15 Award of Contract - Bid No.
056-02; Community Development Block Grant CDBG) Project _ Palm Avenue Reconstruction Phase
I and Phase II from Batavia Street to east of Southern
California Railway (SP-3503). (A2100.0 Agr-4751)SUMMARY: Bids for the rehabilitation
of Palm Avenue were received and opened on July 28, 2005. Three (3) contractors
responded to the NoticeInviting Bids. The apparent low bidderis
R.I. Noble Company for $370,215.45.ACTION:
1) Transferred $155,000 from 310-9640-431000-1070 (
CDBG -Contingencies) to 310-9645-483300-3029 (Palm Avenue Rehabilitation); 2) Awarded the contract in the amount
of $370,215.45 to R.I. Noble Company, 15505 E. Lincoln Ave.,Orange, CA 92856
and
authorized the Mayor and City Clerk to execute on behalf of the City.FISCAL
IMP ACT:
Funds are budgeted and will be available upon
transfer to
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CITY COUNCIL MINUTES September 13, 2005
3. CONSENT CALENDAR (Continued)
REMOVED AND HEARD SEP ARA TEL Y)
3.16 First Amendment to Contract AGR-4552 extending contract with
Southwest Coatings, Inc., to re-paint traffic signal indications and
controller cabinets.A2100,0
Agr-4552.1)SUMMARY: Southwest Coatings, Inc. was awarded a contract, on
a competitive basis,to re-paint traffic signal indications and controller cabinets
in September, 2004. The contract allows for annual renewal for up to one (1) year based
on mutual agreement. It is proposed to renew the contract for FY 2005-2006 in
an amount not
to exceed 84,000.00.Discussion - Councilmember Ambriz stated that he was informed by
staff that in addition to the traffic signals and controller cabinets being repainted,
his concern for the restoration of traffic striping, stop signs and crosswalk lines would
be handled as
well.MOTION - Ambriz
SECOND - Murphy A YES - Smith, Ambriz, Murphy, Cavecche,
Dumitru Moved approval of First Amendment to Contract AGR-4552 with
Southwest Coatings,Inc. in an amount not to exceed $84,000.00 to re-paint traffic
signal indications and controller cabinets, and authorized the Mayor and City Clerk to
execute the Amendment on behalf
of the City.FISCAL IMP ACT: Funds in the amount of $84,000.00 for this contract
are budgeted in the 2005-2006 fiscal year and are available utilizing Gas Tax
Exchange Funds in the Contractual
Services Account 273-5032-4271 00.3.17 Award of Contract - Bid No. 056-07;
SP-3529; Slurry Seal at Various
Locations,Fiscal Year 2005-2006. (A2IOO.0 Agr-4752)SUMMARY: The bids were opened
on August 18,2005. Four (4) bidders responded to the invitation for bids. The
apparent low bidder is American Asphalt South, Inc., for 285,197.00. The Engineer's Estimate is $278,
500,
which is 2.5% lower than the low bid.ACTION:
1) Transferred $250,000 from 262-5011-
483300-3127 (SR-22/City Drive Interchange Improvements) to 262-5021-483300-3120 (Local Street Maintenance);
2) Awarded a contract in the amount of$285, 197 to American Asphalt South, Inc.,
14436 Santa Ana Ave.,
Fontana, CA 92337, and
authorized the
Mayor
and
City Clerk to execute on behalf ofthe City.FISCAL IMP
ACT: Funds following accounts:262-5021-
483300-3120 540-5028-
481105-9607
are budgeted
and will
CITY COUNCIL MINUTES September 13,2005
3. CONSENT CALENDAR (Continued)
3.18 Final Acceptance of Bid No. 045-41, Hart Park furniture removal and
installation,and authorization to file Notice of Completion with the County Recorder (No
staff report required). (A2100.0
Agr-4653)SUMMARY: Granger Construction was awarded a contract on March 22,
2005 to remove and install furniture at
Hart Park.ACTION: Accepted public work improvement known as Bid No. 045-
41, and authorized Hartford Insurance Company, California Performance Bond No.
72BCSDAI697, in the amount
of$31,569.FISCAL
IMP
ACT: None.GRANTS 3.19 Assembly Bill (AB) 3229 grant money for funding of
Police support
personnel.C2500.K)SUMMARY: AB 3229 makes funds available under the Citizen's
Option for Public Safety (COPS) Program in the Governor's budget. The City
of Orange anticipates receiving $200,000 of these funds and proposes to continue funding
six civilian police support positions. These positions enhance the Police Department's
ability to place sworn Police Officers
in the field.ACTION: Upon receipt, allocated the FY 2005 COPS grant award
to continue funding four (4) full-time and two (2) part-time civilian
positions through June 30, 2006.FISCAL IMP ACT: Since 1997, the City of Orange has
received funds through the COPS grant program. These funds have been placed in a separate
fund (354 - AB 3229 Supplemental Law Enforcement Services) and cannot be
transferred to or intermingled with other funds, except to facilitate appropriation and
expenditures by the statute.Interest earnings in Fund 354 will also be allocated to payroll expenditures
for the six (6)positions. The anticipated award of $200,000 will support the
allocation plan and the approval does not
require a
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CITY COUNCIL MINUTES September 13, 2005
3. CONSENT CALENDAR (Continued)
REPORTS
REMOVED AND HEARD SEPARATELY)
3.20 League of California Cities Annual Conference Resolutions. (ORI800.0.12)
SUMMARY; At the October 2005 League of California annual meeting, eight proposed
policy resolutions are being brought forward for consideration.
Discussion - Mayorpro tem Cavecche asked for input from the Council as she wanted to be
sure she represented the entire Council in voting on the League's resolutions.City
Manager, John Sibley stated that all of the eight resolutions currently being considered
in committee may not make it to the general assembly. He reviewed the resolutions
that may be voted on at the assembly; noting that none are counter to the policies
of the Council.Mr.
Sibley stated that the California League of Cities is a group representing all 460 cities in
California, which collectively represents interests at the state legislature.Councilmember
Ambriz requested continuance of the item to the next Council meeting to further
review the issues.Mayor
Murphy suggested that it be brought back to Council only if, upon review, a Councilmember
had a specific resolution that needed to be discussed by the full Council to
determine how the Mayor pro tem is to vote.MOTION -
Murphy SECOND - Dumitru
A YES - Smith,
Ambriz, Murphy, Cavecche, Dumitru Moved to direct the
City Manager to report back at the September 27 Council meeting only if there are
specific concerns of individual Councilmembers on the League resolutions; and authorized Mayor
pro tem Cavecche to vote on each Policy Resolution that goes to the
League of California Cities General Assembly at their annual conference.FISCAL IMPACT: None RESOLUTIONS
3.21 RESOLUTION
NO.
10011 (C2500.K)A Resolution of the
City Council of the City of Orange expressing appreciation to Jorge DeSouza of the Orange
Police Department and commending him for twenty five years of dedicated service.ACTION: Approved.
Page 11
CITY COUNCIL MINUTES September 13,2005
3. CONSENT CALENDAR (Continued)
3.22 RESOLUTION NO.10014 (A2100.0 Agr-
4754)A Resolution of the City Council of the City of Orange approving a Joint
Community Facilities Agreement with the Orange Unified School District and Serrano Heights
East,
LLC.ACTION:
Approved.3.23 RESOLUTION NO. 10015 (A4000.0
APP-500-05)A Resolution of the City Council of the City of Orange
approving Conditional Use Permit No. 2517-04, Minor Site Plan Review No.
360-04, Negative Declaration No.1738-04, and Design Review Committee No. 3943-04,
to allow the construction of a new two-story addition upon property located at
260 S. Shaffer
Street within the Old Towne
Orange Historic
District Applicant:
Scott and Denise Bolt ACTION: Approved.TRACT MAP 3.24 Tract Map No.
16853 - Request for approval. (T4000.0 TRM-16853)SUMMARY: Tract Map No. 16853
creates fifty single-family parcels
as the first phase of the Del Rio development.ACTION: Approved the Final
Tract Map
No. 16853, and
accepted dedication offered
on the map.
FISCAL IMPACT: None.MOTION - Smith SECOND - Cavecche
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Items 3.4, 3.10, 3.11, 3.12, 3.16 and 3.
20 were removed and heard separately.Councilmember Ambriz abstained on Item 3.6. All
other items on the
Consent Calendar were approved
as recommended.
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CITY COUNCIL MINUTES September 13, 2005
4. REPORTS FROM MAYOR MURPHY
Mayor Murphy recognized and thanked the Street Fair Committee and Committee President
Mike Winger for a successful event over the Labor Day weekend.
5. REPORTS FROM COUNCIL MEMBERS - None.6.
REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.7. ADMINISTRATIVE
REPORTS - None.8. REPORTS FROM
CITY MANAGER-The City Manager
thanked Roger Hohnbaum for acting as Interim Public Works Director and announced a new
Director was hired and will begin work on Monday, September 19.9. LEGAL AFFAIRS
9.1 ORDINANCE
NO. 11-05 (SECOND READING) (A2500.0 Ord-11-05 CUP's)
An Ordinance of the City Council of the City of Orange amending Section 17.10.030(1) of the
Orange Municipal Code regulating the expiration of conditional use permits.
MOTION - Cavecche SECOND -
Smith A YES -
Smith, Murphy, Cavecche, Dumitru NOES - Ambriz Moved
that Ordinance No.
11-05 be read by title only and same was approved and adopted by the preceding vote.
10.RECESS TO
THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY Page 13
CITY COUNCIL MINUTES September 13, 2005
II. RECESS TO CLOSED SESSION
The City Council recessed at 6: 15 p.m. to a Closed Session for the following purposes:
a. Conference with Legal Counsel - Existing Litigation pursuant to Government Code Section 54956.
9(a):1)
City of Orange v. Jeffrey Hambarian, Orange County Superior Court Case
No. 807419;2)
Claim of Duane Morse;3)
Appointment of Community Services Director and Economic Development Director.
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.7:
00 p.m. Session 12.
PUBLIC COMMENTS John
Ufkes, 20121 E Clark Street, submitted documents and spoke on the fiscal analysis of the proposed
East Orange development;Robert
Ward, 340 N. Newport Boulevard, spoke on the issue of open space;Alex
Mintzer, Address on File, spoke on the public meeting process;Julie
Jones-Ufkes, 20121 E. Clark Street, spoke on the availability of Planning documents;
Theresa Sears, Address on File, commended Mayor pro tem Cavecche for her request to amend
an area of the proposed East Orange development;
Bruce W oockman, 516 E. Lincoln Avenue, spoke on the General Plan process.
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CITY COUNCIL MINUTES September 13, 2005
13. PUBLIC HEARINGS
13.1 SPECIFIC PLAN AMENDMENT NO. I TO THE PINNACLE AT UPTOWN
ORANGE SPECIFIC PLAN; TENTATIVE TRACT MAP NO. 1685I; AND ADDENDUM
TO ENVIRONMENTAL IMPACT REPORT NO. 1710-02 - BRE PROPERTIES, INC.
C2300.E)
Time set for public hearing to consider a proposal to convert 122 apartments (of 460 total) to
condominiums, for the Pinnacle at Uptown Apartments, renamed the Renaissance at Uptown
Orange, at 3603 W. Chapman A venue.
Note: An assessment of the potential environmental impacts of Specific Plan Amendment No. 1
to the Uptown at Orange Specific Plan and Tentative Tract Map No. 16851, was prepared in
accordance with the California Environmental Quality Act, in the form of an Addendum to
Environmental Impact Report No. 1710-
02.Staff Report - Community Development Director, Alice Angus gave the staff report, stating the
condominiums are located in the back of the complex; with reciprocal agreements for access and
easement between both rental and ownership portions of the site; use of common recreation
facilities; and adequate parking. She stated that an in-lieu fee of $2,850.00 per unit has been
paid on all 460 units for the purpose of providing affordable housing elsewhere. She added that
staff is recommending 5% (or 6) of the condominiums be restricted for moderate income
households.Council
Ouestions In response to questions by Councilmember Ambriz, it was noted that the in-lieu fees
paid were based on the land values of three years ago; and that the land value three years ago was $
35,000 per unit and today, $90- 100,000
per unit.MA YOR MURPHY OPENED THE
PUBLIC HEARING Mr. David Powers, BRE Properties stated that BRE paid a total of $1.3 million in-
lieu fees. He commented on the rising construction costs putting the success of the
development in jeopardy.This caused the sale of a small portion of the project to mitigate the
construction cost increases.He added that the request that six of the condominium units be offered as
affordable units does not meet the profit threshold established by the shareholders of the company.
He then requested that the six-affordable units be changed to the rental side
as moderate income units.Mayor pro tem Cavecche asked if the BRE company will remain as the
owner/manager of the apartments and condominiums; and whether the affordable units being
offered could be
offered as low-income units.Mr. Powers indicated that the BRE company would remain
owners and managers of the development; and that they would prefer to increase the
amount of moderate-income units above the
six requested
CITY COUNCIL MINUTES September 13,2005
13. PUBLIC HEARINGS (Continued)
Public Comments - Lois Barke, address on file, stated a preference for owner-occupied units
over rentals. She also asked if the rentals and condominiums would be built as originally
planned and whether there would be a homeowners association.
Mr. Powers indicated that the units will remain as approved and listed the amenities planned for
both the condominiums and the apartments. He also explained a company program called Home
Plan. It provides for qualifying residents to receive $5,000 to cover closing costs when they are
in a position to buy. He further stated that there will be a homeowners association for the
condominiums to address management and maintenance issues.
Councilmember Ambriz questioned why the entire project was not being converted to
condominiums.
Mr. Powers stated that the BRE Properties is an apartment-oriented company and that
the shareholders do not have the revenue stream to buy and sell. He then agreed to offer
12 moderate-income affordable rental units as opposed to six affordable condominium
units; and agreed that the size of the affordable units would be in the same proportion to the mix
of
all units.Senior Housing Manager, Rick Otto responding to Councilmember Dumitru, explained
the term moderate income is based upon the median income for the County. He explained
that an individual who would qualify for a moderate-income rental would have to earn
80-120% of
that median income figure.MAYOR MURPHY
CLOSED THE
PUBLIC HEARING-Council Comments Mayor pro tem Cavecche stated for the record that she wants to be sure that
the City holds this development to the requirement for a landscaping and maintenance
program. She also indicated her support for the offer of the
12 affordable rental units.Councilmember Smith commented she would not support the project
unless it included some type of affordable housing; and supported the offer for 12 rentals
being offered as affordable.Councilmember Ambriz stated his desire to have a balance in
offering low-income families
the opportunity for home ownership.Mayor Murphy clarified that the qualifications for
both owning and renting moderate-income units were identical; and stated his support for the offer that 12
of the apartment units would be offered as moderate-income rental
units, rather
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CITY COUNCIL MINUTES September 13,2005
13. PUBLIC HEARINGS (Continued)
City Attorney, David DeBerry stated that 30% of the apartment units will actually come in at
market rate for moderate income. He made the distinction that 12 will be deed-
restricted moderate-
income units.Council clarified that the designated affordable housing units would occur proportionately
to the mix of
all units.Mayor Murphy noted that the developer was indicating agreement with that formula
for the affordable
housing mix.RESOLUTION
NO. 10013 A Resolution of the City Council of the City of Orange approving the
Addendum to Environmental Impact Report No. 1710-02, Specific Plan Amendment No.
1, and Tentative Tract Map No. 16851 to allow the conversion of 122 Units from
Apartments to Condominiums out ofa total of 460 Units) at 3063
West Chapman Avenue.
Applicant: BRE Properties
MOTION - Murphy SECOND -
Ambriz A YES - Smith, Ambriz, Murphy, Cavecche, Dumitru
Moved to approve Resolution No. 10013 with recognition that 12 of the rental units will be deed
restricted as affordable to moderate income households; and recognizing that the size and type
of the affordable income units be in the same ratio as the remaining 338 apartment units.
13.2 TENTATIVE TRACT MAP NO. 16880, AMENDED CONDITIONAL USE
PERMIT NO. 2478-03, AND ADDENDUM TO MITIGATED
NEGATIVE DECLARATION NO. 1723-03 - TRAMMELL CROW RESIDENTIAL. (C2300.
E)Time set for public hearing to consider a proposal to convert 279 apartment units into
278 condominium units as part of a previously approved mixed-use development on 4.7
acres. The project site is located within the Orange Merged and Amended Redevelopment
Project Area former Southwest Redevelopment Project Area), also identified
as an Underutilized/Redevelopment Site in the City of Orange Housing Element
Residential Sites Inventory. Alexan Pacific Grove (formerly named Trammell Crow Apartments) located
at 3091 W.
Chapman Avenue.Note: An assessment of the potential environmental impacts of Tentative Tract Map
No. 16880 was prepared in accordance with the California Environmental Quality Act, in the form
of an Addendum to Mitigated Negative Declaration (MND)
No. 1723-
CITY COUNCIL MINUTES September 13,2005
13. PUBLIC HEARINGS (Continued)
Staff Report - Community Development Director, Alice Angus gave the staff report, stating that there
are no significant differences resulting from the conversion to condominiums. She added that
5%, or 14 units, are being designated as affordable to moderate-income households in
addition to the in-lieu fees
paid.COllncil
Ouestions Councilmember Ambriz asked about park fees; reason for 11 of the affordable units being
one-bedroom; and whether there is a reduction in the traffic impacts by the conversion
from apartments to
condominiums.Ms. Angus indicated that the Quimby Act park fees stay the same with the conversion and
have all been paid; the negotiation over the II one-bedroom units being offered as
affordable had been negotiated with the developer early on; and the traffic impacts for apartments
is only
slightly higher.Mayor pro tem Cavecche asked about the expanded retail area, going from 4.200 to 5,
000 square feet with regard to the
parking situation.Ms. Angus clarified that the 4,200 figure applied to net leasable space and the 5,
000 figure represented the
gross area.Councilmember Smith asked if the vendors in the commercial area were
known yet.MAYOR MURPHY OPENED THE PUBLIC
HEARING -Brad Perozzi, representing the Trammell Crow Company stated that construction began in
July 2004 and the expected date of completion is June 2006. He reported that the conversion
from apartments to condominiums was necessary due to construction defect litigation and that
the housing market is currently driving the condominium market. He indicated that there will be
a homeowner's association and that a maintenance agreement has been signed for upkeep of
the property. He added that there are no commitments for the retail site yet. He explained
the factors that necessitated the change from apartments to condominiums include the purchase of
a an Insurance policy and the eventual lawsuit over construction defects, but not the
construction costs
themselves.Councilmember Ambriz asked who will manage the affordable units for the 45-year term
of the restriction. He also asked if the 14 units would be located together or spread out
throughout
the development.Senior Housing Manager, Rick Otto responded that the deed restnctlOn will
carry the affordability clause for 45 years and that the deed restricting the resale is recorded.
He also indicated that the Redevelopment Agency would be responsible for managing the resale
of
the units.
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CITY COUNCIL MINUTES September 13,2005
13. PUBLIC HEARINGS (Continued)
Speakers - LoisBarke, Address on file, stated her concern for the impact on schools and parks and
commented on Mr. Perozzi's statement that the development has been designed for the young
professional.Mr.
Perozzi responded that the originally approved plan will not change with the conversion from
apartments to condominiums and that he also did not expect changes in the makeup of the occupants.
These are one and two bedroom units, so are geared more for single residents or couples;
and that the 14 affordable units will be spread throughout the entire project.MAYOR
MURPHY CLOSED THE PUBLIC HEARING Council
Comments Councilmcmber
Smith thanked the developer and acknowledged the developer's willingness to come
forward and offer the 5% affordable units.Councilmember
Ambriz agreed and stated the City's need to revitalize the west side of town.RESOLUTION
NO. 10012 A
Resolution of the City Council of the City of Orange approving the Addendum to Mitigated Negative
Declaration No. 1723-03, amended Conditional Use Permit No. 2478-03 and
Tentative Tract Map No. 16880 to allow the conversion of 279 Units from Apartments to
278 Condominiums within a Mixed-Use Development at 3091 West
Chapman Avenue.Applicant: Trammell
Crow Residential MOTION -
Cavecche SECOND - Smith
AYES - Smith, Ambriz, Murphy, Cavecche, Dumitru Moved
approval of Resolution No. 100] 2.13.
3 GENERAL PLAN AMENDMENT NO. 2004-0005; ZONE CHANGE NO. 1229-
04;MAJOR SITE PLAN REVIEW NO. 355-04 (INCLUDING A DENSITY
BONUS); DESIGN REVIEW COMMITTEE NO. 3942-04; VESTING TENTATIVE TRACT
MAP NO. 16787;MITIGATED NEGATIVE DECLARATION NO. I
736-04; AND MITIGATION MONITORING PROGRAM - THE OLSON COMPANY (
C2300.E GPA-2004-0005)Time set for public hearing to consider a proposal for the Manchester
Walk Townhomes, an 18 unit townhome project located at the intersection of Manchester
Place and Compton Avenue,
including 206
CITY COUNCIL MINUTES September 13, 2005
13. PUBLIC HEARINGS (Continued)
Note: a hearing on this matter was originally scheduled for January 11, 2005, but was continued
until the Disposition & Development Agreement between the Olson Company and the Orange
Redevelopment Agency was finalized.
Note: Mitigated Negative Declaration No. 1736-04 was prepared to evaluate the
potential environmental impacts of the proposed project in accordance with the provisions of the
California Environmental Quality
Act.Staff Report - Community Development Director, Alice Angus gave the staff report, stating that
the project is on a former fire station site and consists of 18 units. She stated that 50% of the
units will be sold as affordable~low- to moderate-income~and will remain affordable for
45 years. The Redevelopment Agency will administer the
resale.Council Ouestions - Mayor pro tem Cavecche commented that the City is being asked to become
a financial partner in this project and wanted to confirm that staff has verified items such as the
financial pro forma, the investors, and percentages.
Senior Housing Manager, Rick Otto responded that along with GRC Associates~an economic
and fiscal consultant~staff has assessed this information, and in comparing various costs to
comparable projects in other communities, it was determined that the venture is sound. Mr. Otto
indicated that the original purchase price of the land was $1.2 million with the condition that
50% of the units be affordable.
Councilmember Smith identified several traffic issues in this area which need to be addressed,
such as the need for signage along Manchester at the rear of the Best Buy parking lot, indicating
that a right turn onto Manchester Avenue is prohibited; and wanted to ensure automobile and
pedestrian traffic safety at Compton A venue and Manchester for pedestrians traversing from this
project to Best Buy and possibly the addition of crosswalks to the eating establishments that
residents will access.
Mayor Murphy indicated that these traffic issues would be addressed by staff separately from
this application.
MAYOR MURPHY OPENED THE PUBLIC HEARING -Kim
Prijatel, Vice-President of Development for the Olson Company, commented on community
meetings conducted last year on the project at which concerns were expressed regarding parking
that have since been resolved. She indicated that the construction costs had increased to a point
that not all of the 18 units could be sold at affordable rates.
Mayor pro tem Cavecchc askcd what the developers are making above the 9% developer fee.
She requested a review ofthc fees to breakdown the hard versus soft costs.
Page 20
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CITY COUNCIL MINUTES September 13, 2005
13. PUBLIC HEARINGS (Continued)
Ms. Prijatel responded that the Olson Company was acting as the general contractor on the
project; noting that the management fee is 2%; corporate management fee is 3%; and a site
supervision fee of $4.00 per square foot. No separate contractor fee was being charged.
Mr. Otto stated that three years ago the land cost was $35,000 per unit to develop an affordable
unit for rental purposes; today the cost is closer to $90,000.
Mayor pro tem Cavecche reviewed the history of the transactions occurring on the site with the
City selling the site to the Redevelopment Agency and yet indicated that the outcome of the
transactions to establish the affordable project was a worthwhile gain. She stated her concern
over whether the City could expect to get back 50% minimum proceeds on the project.
Mr. Otto stated that what the nine market-rate units will sell for and what the development
costs for the project will be, resulted in staff and the developer coming up with the additional
purchase price to counter-balance those two issues~the two unknown assumptions at this point.
Staff is assuming that based on market conditions and construction costs, that there will be
excess profit on the project. The pro forma on the project is based on what is believed the market
units will sell at and what it will take to build the project, resulting in an additional $500,000
in net proceeds. The Agency will share 50% of that with the City. He indicated that the
fees discussed earlier were factored into these numbers and that the overhead
is static.Mr. Otto cited the moderate housing price in Orange County is $303,450 based on
County's median income and interest rates which mayor may not change. He explained
the conditions placed on the nine
affordable units.Councilmember Smith raised her concerns regarding the tot lot on the project,
suggesting that bollards be used to protect the tot lot from the parking lot
and traffic.Mr. John Reekstin, Olson Company, indicated that there are many trees around the tot
lot which sits approximately 30 feet back from the curb. He indicated that there are parking spaces
in front of the tot lot as well and indicated an openness to including bollards to ensure the safety
of the
tot lot.Speakers - John Baker, Arbor Way, spoke on the need to give priority to those qualifying
for affordable units and the process of selling the units in the
future.MA YOR MURPHY CLOSED THE PUBLIC
HEARING Council
Comments Mayor Murphy suggested the item be continued for two weeks. He suggested CouncilgivedirectiononparametersfornegotiationwiththeOlsonCompanyonthelandsalepricebeing
no less than a guarantee of $900,000, which is what the City has invested in the property; and
the percentage of affordable units at no less than
50%.Page
CITY COUNCIL MINUTES September 13, 2005
13. PUBLIC HEARINGS (Continued)
Councilmember Smith indicated that the parcel was an odd shape and she welcomed the Olson
Company accepting the challenge to work out a successful project on it. She favored the
continuance.
Mayor pro tem Cavecche thanked Senior Housing Manager Rick Otto and stated her desire for a
more equitable deal which would still allow the project.
Mr. Reekstin indicated a willingness to negotiate to finalize the project and begin construction. He
agreed to set the land value at $900,000 but asked for elimination of the profit participation clause.
MOTION - Murphy SECOND -
Ambriz AYES - Smith,
Ambriz, Murphy, Cavecche, Dumitru Moved to continue
to September 27, at the 4:30 session, for a further review of the percentage of affordable units and
a property value guarantee; as well as design elements for the tot lot and parking area.13.
4 DISPOSITION
AND DEVELOPMENT AGREEMENT BETWEEN :rHE ORANGE REDEVELOPMENT AGENCY AND
OLSON URBAN HOUSING, LLC. RELATED TO THE SALE OF
PROPERTY AND CONSTRUCTION OF AN 18-UNIT TOWNHOME PROJECT LOCATED
AT MANCHESTER PLACE AND COMPTON AVENUE.A2100.0
Agr-4753)See
related Orange Redevelopment Agency Minutes Item No. 11.1 Time
set for joint public hearing with the Orange Redevelopment Agency to consider approving a
Disposition and Development Agreement between the Orange Redevelopment Agency and the Applicant
that specifies the terms and conditions of the sale and subsequent development of the Manchester
property.In
2003, the Redevelopment Agency acquired the 1.08-acre Manchester property from the City
for the purpose of developing an affordable ownership housing project. Following a Request For
Proposal (RFP) process, the Agency entered into an exclusive negotiation agreement with the
Olson Company to allow them to pursue entitlements and a land sale agreement to develop an
18-unit townhome project on the site. The project provides that nine of the units will be
restricted to moderate income
buyers.MOTION - Murphy
SECOND - Ambriz AYES -
Smith, Ambriz, Murphy, Cavecche, Dumitru Moved to
continue to September 27, at the 4:30 session, for a further review of the percentage of affordable units
and a property value guarantee.Page 22
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CITY COUNCIL MINUTES September 13, 2005
14. PLANNING AND ENVIRONMENT - None.IS.
ADJOURNMENT The
Council adjourned at 9:35 p.m.The
next Regular Council meeting is scheduled for September 27,2005.I
Declaration
of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a I regular
meeting of September 13, 2005 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 I to
members of the public at least 72 hours before commeucement of said regular meeting; and available
at the Civic Center City Clerk's Office.JAt
MARK
A. MURR MAYOR
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