HomeMy WebLinkAbout6_8_2004 - Council MinutesAPPROVED BY THE CITY COUNCIL ON JUNE 22, 2004
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING June 8, 2004
The City Council of the City of Orange, California convened on June 8, 2004 at 4:30 p,m, in a
Regular Meeting in the Council Chambers, 300 E, Chapman Avenue, Orange, California,
4:30 P.M. SESSION
1. OPENING
1.1 INVOCATION
Given by Pastor Frank Riley, Orange Covenant Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Mark Murphy
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ABSENT -
None 1.4
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS John Whiteriver,
194 S, Pixley, invited the public to witness the flag retirement of old and tattered
flags on Saturday, June 12 at 10:30 a,m, at the American Legion at 143 S,Lemon,Recognition
of
City of Orange as recipient of Government Finance Officers Association Distinguished Budget
Presentation Award; presented to Leila Hoopii, Financial Analyst and Barbara
Messick, Sr. Assistant to the City Manager.Recognition of
City of Orange as recipient of 2004 American Planning Association,Orange County
Chapter, Award of Merit for Planning Outreach and Education; presented to Anna
Pehoushek, Acting Principal Planner and Tara Finnigan, Business & Public Affairs Manager.
2. PUBLIC
COMMENTS - None.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.PAGE 1
CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
3.1 Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council
agenda of a regular meeting of June 8, 2004 at Orange Civic Center North facing
kiosk, Police facility at 11 07 North Batavia, Shaffer Park; all ofsaid locations being
in the City of Orange and freely accessible to members of the public at least 72
hours before commencement of said regular meeting; and available at the Civic
Center City Clerk's Office and Main Public Library, 101 N. Center Street.
ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a
public record in the Office of the City Clerk.
3.2 Request Council Confirmation of warrant registers dated May 20 and 27, 2004.
ACTION:Approved,
3.3 Request approval of City Council Miuutes, Regular Meeting, May 25, 2004.
ACTION:Approved,
3.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION:Approved,
AGREEMENTS
REMOVED AND HEARD SEP ARATEL Y)
3.5 Award of Consultant Services Agreement - RFP No. 034-44 - FOG Characterization Study.
SUMMARY:
Order No, R8-2002-0014, issued by the California Regional Water
Quality Control Board to all sewer collection agencies within Orange County in the Santa
Ana Region, requires each agency to establish a FOG (fats, oils and greases) Control
Program,To accomplish this, the City of Orange requires the services of a
qualified engineering/consulting firm to conduct a FOG Characterization
Study.
Discussion Councilmember Coontz asked about the FOG (fats, oils, greases) program and
grease recycling process, She referred to newspaper articles on the use of restaurant grease
for diesel fuel; noting that restaurant grease was collected and recycled for use in World
War II. She spoke on the importance of knowing how the grease is recycled as it may
be difficult to monitor the program without this
information.Director of Public Works Harry Thomas reported that the City has required
grease interceptors since 1999. Although the City has no present information on the
current grease recycling process, staff will look into that information; and will include
education on this issue in any information that is provided to
restaurants.PAGE
CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
Mayor pro tem Cavecche commended the Public Works staff for their great cutting-
edge work on this
issue,MOTION - Coontz
SECOND - Alvarez AYES -
Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Awarded
RFP No, 034-44 and approve Consultant Services Agreement with Environmental
Engineering & Contracting, Inc, in an amount not to exceed $110,000 and authorized
the Mayor and City Clerk to execute on behalf of the City.FISCAL
IMP ACT: Funds in the amount of $110,000 are available in Account No. 220-5022-
426700 (Other Professional and Consulting Services),
3.6 Approve an amendment to the agreement with N. Harris Computer Corporation
Harris") which provides funding for maintenance and support services in the
amount of $256,178 over a period of five years.
SUMMARY: The Utility Billing Division of the Finance Department has recently
upgraded its utility billing software and is in the process of training its staff in order to
implement the new program on July 1, 2004, Maintenance and support with the vendor
is critical for the success of the new system and has begun on April I and ends on March
31 annually.
NOTE: Mayor Murphy abstained on this item.
ACTION: Approved the terms and provisions of the First Amendment to the Agreement
for the Acquisition and Supply of Customer Information System Software, Hardware and
Related Professional Services which provides funding of $256,178 over the next five
years for maintenance and support of the Public Utility Billing Software (PUBS) used by
the Utility Billing Division; and authorized the Mayor and City Clerk to execute on
behalf of the City,
FISCAL IMP ACT: Funds for the services in year one are available in accounts 220-
1601-424102-0000 for $17,775,00 - Sanitation Fund - Repairs; and 600-
1601-424102-0000 for $17,775 - Water Fund - Repairs, Total $35,550
3.7 Attorney Services Agreement with the Law Firm of Palmieri, Tyler, Wiener,
Wilhelm & Waldron, LLP to provide legal services in connection with
condemnation matters.
SUMMARY: The City entered into an agreement with Palmieri, Tyler, Wiener, Wilhelm
Waldron, LLP, to provide legal services in connection with eminent domain matters,
specifically the case of City of Orange v, Ultramar. The current agreement has a not to
exceed amount of $30,000 which will likely be exceeded shortly.
PAGE 3
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CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
ACTION: Approved and authorized the Mayor and City Clerk to execute the proposed
contract with Palmieri, Tyler, Wiener, Wilhelm & Waldron, LLP for a total sum of
100,000.
FISCAL IMPACT: Sufficient funds are available in Account No, 284-
5011-483300-4038 - Chapman Widening - 57 Fwyto Main St.
REMOVED AND HEARD SEPARATELY)
3.8 Approve a Specific Term Employment Agreement with Edward Knight to provide
expertise as it relates to The Irvine Company and East Orange planning issues.
SUMMARY: The City has been utilizing the services of Mr. Edward Knight as a
plarming consultant through the consulting firm of Hogle-Ireland, Inc, on a full-
time basis since September 5, 2003, Mr. Knight's services are focused entirely on
plarming and development issues as they relate to The Irvine Company and the East
Orange plan,These services are fully reimbursed by The
Irvine
Company.Discussion Councilmember Coontz asked for more clarification on this agreement as
she understood that a number of people were already working on
this project.City Manager David Rudat explained that the Irvine Company pays for the
staffing on this project, and this staff position is required due to the work load particulars
staff beings to look at maps and more detailed information, This person, who was
working on contract through a consulting firm, is being brought on under contract and
will be working directly for San
Soo Hoo,Steven Pham, Personnel Director, clarified this contract will unsure compliance
with IRS regulations for
contract employees,Councilmember Alvarez inquired where the considered position fits into the
East Orange organizational chart; and requested a new
updated chart.Stan Soo Hoo, Assistant Community Development Director, reiterated
that the consultant has been acting in the capacity of a full time
City employee.Councilmember Coontz remarked on the need for clarification between City
staff and consultants, She stressed the importance of Council and the community
knowing who serves as a consultant and whether they serve under the City or applicant'
s purview.City Manager David Rudat assured Council that a significant arms
length relationship exists between the Irvine Company and their consultants and the City of Orange
and the City'
s consultants,
CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
Councilmember Ambriz asked for clarification on the payment of funds from The Irvine
Company,
City Attorney David De Berry explained that the City of Orange charges all applicants
for staff time in processing applications, In this way, Irvine Company is responsible for
reimbursing the City for all processing,
MOTION - Alvarez SECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved a
Specific Term Employment Agreement with Mr, Edward Knight and authorized the
Mayor and City Clerk to execute on behalf of the City; and authorize staff to adjust
the Community Development Department's salary and benefit budget and amend the revenue
budgets in anticipation of the reimbursements in the FY 2003-04 budget and
the proposed FY 2004-05 budget to reflect the cost of the agreement.FISCAL
IMP ACT: Salary and fringe benefits costs for a Principal Planner at top step are roughly $
118,000 for FY 2004-05. These costs are fully offset (reimbursed) by The
Irvine Company,
3.9 CLAIMS
SUMMARY: The following c1aim(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
c1aim( s) be denied,
a. Scott Parker dba Watson Drug Store
NOTE: Councilmember Alvarez abstained due to property interest at 131 S, Glassell,
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster
CONTRACTS
3.10 Award of Contract - Bid No. 034-43; Project No. SP-3475; Municipal Parking
Lot at 190 S. Olive
Street.SUMMARY: The bids were opened on May 13, 2004, Eight (8) bidders responded to
the invitation for bids, The apparent low bidder is Popular Paver Rental for $130,597,
21.ACTION: Awarded the contract in the amount of $130,597,21 to Popular Paver
Rental,840 Obispo Avenue, Long Beach, CA
90804,FISCAL IMP ACT: Funds are budgeted and are available in the following
account:940-9800-485100-920 I $173,200 (
Merged Capital
Proj
ects)PAGE 5 T' - '--"~'---'-'
CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
3.11 Final Acceptance of Bid No. 034-29 - Hart Park Pool Equipment Replacement and
authorization to file Notice of Completion with the County Recorder (No Staff
ReJlort required)
SUMMARY: Bid No, 034-29 - Hart Park Pool Equipment Replacement, Contractor:
California Commercial Pools. Staff recommends acceptance of improvements.
ACTION: Accepted public work improvement, authorized release of XL Specialty
Insurance Company, Bond No, SB0081708, in the amount of $138,000, and authorize the
Mayor and City Clerk to execute the Notice of Completion,
FISCAL IMPACT: None,
PURCHASES
3.12 Purchase of five (5) GrimmerSchmidt portable air compressors.
SUMMARY: Purchase five (5) GrimmerSchmidt 175 portable air compressors from
GrimmerSchmidt Compressors, per Bid No, 034-38, to replace current unit numbers
760,767,893, 1023, and 1024 in the Public Works
Department.ACTION: Authorized purchase of five (5) GrimmerSchmidt 175 portable
aIr compressors from United Rentals Northwest Inc, (inadvertently identified
as GrimmerSchmidt Compressors) in the amount of $70,606.80; and authorized the
Mayor and City Clerk to execute contract on behalf of the City; and authorized the City
Manager to surplus the replaced compressors at an
auction,FISCAL IMPACT: There are sufficient funds in Account No, 720-
5023-472102
Motor
Vehicle Replacement.RESOLUTIONS 3.13
RESOLUTION NO. 9868 A Resolution of the City Council of the City of Orange concerning
the purpose of obtaining Federal financial assistance under the California Board
of Corrections (BOC)Juvenile Accountability Block Grant (
JAB G)
Program,ACTION: Approved 3.14
RESOLUTION NO. 9869 A Resolution of the City Council of the City of Orange
expressing appreciation to William E, Mertz of the Public Works Department and commending him for
36 years of loyal
and dedicated
service,ACTION:
CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
3.15 RESOLUTION NO. 9871
A Resolution of the City Council of the City of Orange concerning the status of the
Circulation Element for the City of Orange,
ACTION: Approved,
3.16 RESOLUTION NO. 9872
A Resolution of the City Council of the City of Orange expressing appreciation to Steve
W, Hartman of the Public Works Department and commending him for more than 32
years of loyal and dedicated service,
ACTION: Approved.
3.17 RESOLUTION NO. 9873
A Resolution of the City Council of the City of Orange expressing appreciation to LeRoy
D, Striegel of the Public Works Department and commending him for more than 35 years
of loyal and dedicated service.
ACTION: Approved,
3.18 RESOLUTION NO. 9874
A Resolution of the City Council of the City of Orange expressing appreciation to
Charles H, Glass of the Public Works Department and commending him for 16 years of
loyal and dedicated service,
ACTION: Approved,
3.19 RESOLUTION NO. 9875
A Resolution of the City Council of the City of Orange expressing appreciation to
Richard Barnes of the Public Works Department and commending him for more than 34
years ofloyal and dedicated service,
ACTION: Approved,
3.20 RESOLUTION NO. 9876
A Resolution of the City Council of the City of Orange approving Lot Line Adjustment
LL 2004-02 combining two parcels of certain real property situated at 326 West
Palm Avenue in the City of Orange, County of Orange, State of
California.Owner: Chapman University, A California
Corporation,NOTE: Mayor pro tem Cavecche abstained on this item to stay consistent with
her previous votes on Chapman
University.ACTION:
Approved,PAGE
7
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CITY COUNCIL MINUTES June 8, 2004
3. CONSENT CALENDAR (Continued)
REMOVED AND HEARD SEPARATELY)
3.21 RESOLUTION NO. 9877
A Resolution of the City Council of the City of Orange temporarily closing and
restricting parking on Chapman Avenue from Shaffer Street to Glassell Street, on
Glassell Street from Chapman Avenue to Almond Avenue, and on Almond Avenue from
Glassell Street to Lemon Street to facilitate the Historic Edwards House move on June
21,2004 to 242 W. Almond Avenue,
Discussion
Linda Day, 1103 E, Wilson, thanked the City and Council for supporting the Edwards
House move, particularly with the removal and trimming of appropriate trees along the
route. She provided an update on the house move, reporting that they have been able to
save and store the bricks from the Edwards House porch and will build a new porch with
these old bricks,
In response to Council questions, Mr. Thomas explained it is the height of the trees along
South Glassell that will interfere with the house move because the house is wider at the
top than at the bottom,
MOTION - Murphy SECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Approved,3.
22 RESOLUTION
NO. 9884 A Resolution of
the City Council of the City of Orange expressing appreciation to Sergeant James W,
Pyne of the Orange Police Department for his 33 years of loyal and dedicated service to
the City of Orange,ACTION: Approved.MOTION -
Murphy SECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy,
Coontz, Cavecche Items 3,5, 3,8 and
3,21 were removed and heard separately. Mayor Murphy abstained on Item 3.6, Councilmember Alvarez abstained
on Item 3,9. Mayor pro tem Cavecche abstained on Item 3,20, All
other items on the Consent Calendar were approved as recommended,END OF CONSENT CALENDAR PAGE
8
CITY COUNCIL MINUTES June 8, 2004
4. REPORTS FROM MAYOR MURPHY - None.5.
REPORTS FROM COUNCILMEMBERS 5.
1 Councilmember Coontz - Request staff to agendize both a thorough written and oral update
to the City Council, at a future Council meeting, on the progress of the Master Plan of
Recreational Trails.Councilmember Coontz
reported she had spent time researching Council Minutes and found that she had
made requests of staff ten times for information and action on the Master Plan of Recreational Trails
dating back to May 2000,In one
request she stated that "over a number of years, the City Council has been approached by the community
to address the many unresolved issues regarding existing and potential recreational trails,
including their construction, connections, funding of maintenance, safe road crossing, and
trail hazards,"She recalled
numerous residential developments that occurred over the years on which the city required such
trails; and she had been told that the requirements probably go back over 40 years,so it
can be acknowledged that the City had a responsible hand in their existence,In September
2000 the Council approved a consultant agreement for a review and update of the Master Plan
of Recreational Trails for $22,000, The purpose of the contract with Purkiss Rose was to
update the Master Plan, However, staff indicated at a later date the Plan would not be revised, That
is a curious turn of events because the Plan is part of the Open Space Element of the General
Plan, and she assumed most if not all of the Elements of the General Plan would soon be
updated, She also questioned what happened to the Purkiss Rose accomplishments,including results
of the public input and discussions at the open meetings. She understands they have not
been put forward publicly.In talking
with a member of the Park Commission, she was told that the Commission has requested a
continuation of their study of the Recreational Trails because of the enormous detail involved and
there was an assumption on their part that the City Council was also being updated,She indicated
that the Council is not updated, other than the Minutes they receive,The Commission
minutes indicate that the City Council will experience a power point presentation at
a joint study session with the Commission, As a matter of record, the City Council previously
asked for more than that. She questioned how one power point study session can be
justified as sufficient preparation for Council policy decisions that will last yet another 10 or 20
years,There are
other related issues on which the Council needs an update and an opportunity to make decisions. The
Diocese of Orange has applied for a Conditional Use Permit for establishment of a trail.
The Council was not told of that application but it was referenced in the Commission's minutes. Another
issue is the proposal by Supervisor Campbell to retain the "bat bridge" as a crossing over
Santiago Canyon Road for trail use, She wondered if the Council was supporting this proposal.
PAGE 9
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CITY COUNCIL MINUTES June 8, 2004
S. REPORTS FROM COUNCILMEMBERS (Continued)
She requested the Council's support in asking staff to sufficiently prepare the Council for the
decisions they must make on the Master Plan of Recreational Trails and give the Council
information on both the Diocese of Orange application and the issue of the "bat bridge",
She noted the importance of keeping the Council and the community informed before the
Council is asked to make policy decisions on a beneficial issue, It is important to have strong
informational background delivered beforehand and in a timely manner.
City Manager David Rudat assured Council that staff will prepare a sufficient trails report.
Councilmember Alvarez also requested information be provided on grant activity for trails.
Councilmember Ambriz reiterated the need for information on what the City is doing to pursue
grant opportunities; noting that the City Council has verbally expressed the importance of trails
to the community, He thanked Councilmember Coontz for bringing the trails issue forward as
the City is behind in this issue.
Councilmember Coontz pointed out the Council has taken responsibility to require trails but
needs to step forward in funding the trails, She spoke on the need to budget for trail connections
and promote the areas beneficial to the City,
Councilmember Alvarez noted there is an upcoming Study Session on Grijalva Park which will
help in bringing this information forward.
Mayor Murphy suggested a report to track progress on individual trail projects which will allow
the Council to prioritize trail projects. He commended staff for pursuing grants, including a $2
million grant for Grijalva Park.
Councilmember Coontz further noted it is important to look at new parks, but at the same time, it
is also important to review existing parks to see what can be done. It is also important to note
there are different types of trails throughout the City,
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.7.
ADMINISTRATIVE REPORTS - None.8. REPORTS
FROM CITY MANAGER Off Al!
enda Item City Manager
David Rudat asked for a report from the Police Department on a new grant opportunity,PAGE
10
CITY COUNCIL MINUTES June 8, 2004
8. REPORTS FROM CITY MANAGER (Continued)
Captain Bob Gustafson reported on a grant from the Office of Traffic Safety for $433,000 to the
Police Department for the ROAD (Repeat Offender Apprehension Detail) program, The grant
will allow traffic citation tracking and license suspension reviews as drivers with revoked,
suspended, and/or unlicensed drivers are involved in a large number of injury accidents, He
further explained that the grant provides for a full time two year Dur team, including a DUI
trailer with new technology. He further provided statistics to support the grant program, pointing
out that 20% of all collisions involve unlicensed drivers and 60% of hit and run accidents involve
one of these types of drivers.
8.1 Presentation of the FY 2003-04 Third Quarter Budget Report which includes
the period July 1,2003 through March 31,
2004.SUMMARY: This Third Quarter Report helps inform the City Council of
departmental performance for the quarter, including progress towards the achievement of departmental
goals and completion of major capital improvement projects, and summarizes the results of the City'
s financial
operations,MOTION - Cavecche
SECOND - Ambriz AYES -
Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ACTION: Received
and filed the FY 2003-04 Third Quarter Budget Report,9.
LEGAL AFFAIRS 9.
1 ORDINANCE NO. 12-04 (FIRST READING)
An Ordinance of the City Council of the City of Orange amending the Amended and Restated
Redevelopment Plan for the Orange Merged and Amended Redevelopment Project Area to
extend certain time limitations,
MOTION - Alvarez SECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche Moved that Ordinance
No, 12-04 be read by title only and same was set for second reading by the preceding
vote,9.2
ORDINANCE NO. 16-04 (SECOND READING)An
Ordinance of the City Council of the City of Orange amending Chapter 5,92 of Title 5 of the Orange
Municipal Code Relating to Regulations for News Racks on Public Property,MOTION -
Coontz SECOND - Alvarez
AYES - Ambriz, Alvarez,
Mayor Murphy, Coontz, Cavecche Moved that Ordinance No,
16-04 be read by title only and same was approved and adopted by the preceding vote,
PAGE 11 T ----.------"--~----..-------
CITY COUNCIL MINUTES June 8, 2004
10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY
11. RECESS TO CLOSED SESSION
The City Attorney reported that pursuant to Government Code Section 54954.2, the City Council
may take action on items of business not appearing on the Agenda, if the City Council finds by a
4/5 vote that there is a need to take irnmediate action and that the need for action came to the
attention of the City after the posting ofthe Agenda, One June 6th, President Bush declared June
11 th
as a National Day of Mourning for former President Ronald Reagan, The State has also
declared Friday a state holiday, If the City is to close in conjunction with this State holiday, the
City needs to take irnmediate action, including any impacts on the City's current labor
agreements, which would be considered in Closed Session,
MOTION - Murphy SECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche Moved that there
is a need to take immediate action on the matter to consider Friday, June 11 th as a National
Day
of Mourning and to close City Hall; and the need for this action came to the attention of the
City after the posting of the Agenda,The City Council
recessed at 5:15 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):
City of Orange v,
UltraMar, Inc. et a!., Orange County Superior Court Case No, 02CC03241 b, Public
Employee Appointment
pursuant to Government Code Section 54957 Title: Police Chief and
Economic Development Director c, Conference with Labor
Negotiator pursuant to Government Code Section 54957.6 City Negotiator: Steven Pham
Employee organizations: AlIlabor organizations.
d. 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,PAGE 12
CITY COUNCIL MINUTES June 8, 2004
7:00 P.M. SESSION
Mayor Murphy announced there was discussion during Closed Session to close City Hall on
Friday, June 11 th
as a National Day of Mourning for former President Ronald Reagan,
MOTION - MurphySECOND -
Coontz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche Moved to close
City Hall on Friday, June 11,2004 in honor of the National Day of Mourning for Ronald Reagan, 40th
President of the United States,12. PUBLIC COMMENTS
Arlen Craig, Address
on File, spoke on Santiago Creek and enviromnental considerations and policies,13. PUBLIC
HEARINGS
13.1 PROPOSED
FISCAL YEAR 2004-05 CITY OF ORANGE BUDGET AND SEVEN YEAR CAPITAL
IMPROVEMENT PROGRAM Time set
for public hearing to consider the proposed Fiscal Year 2004-05 City of Orange Budget and
Seven Year Capital Improvement Program,City
Manager David Rudat announced the presentation of a balanced budget for the 2004-05
year that pursues policies of excellence committed to residents, businesses and visitors of the
City of Orange,
Barbara Messick, Sf. Assistant to the City Manager, reported that each year, the City of Orange
conducts three Study Sessions in addition to the public hearing to review Budget Goals and
Objectives, the Capital Improvement Program and Revenues and Expenditures,
She reviewed strategies for a balanced budget, which include programmed savings, amortization
of PERS safety rates over 25 years, planned use of reserves and a reduction in funding of special
workers comp safety allocation. She reviewed the highlights of the Capital Improvement
Program, including construction of the new Main Library and Fire Stations One and Eight. She
reported the projected Total Revenues is $150.2 million and all Funds Expenditure is $163.4
million, She reviewed recommended staffing changes, with a net change of an additional four
positions, for a total of 683, She reviewed the General Fund Balance, noting Reserves of $16,6
million, This is derived from 25% of General Fund expenses ($15,6 million) which is
established as a catastrophic reserve and an additional $1 million reserved for debt service on the
Police facility building, She noted the City of Orange has the second highest reserve policy of
all cities in Orange County.
PAGE 13
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CITY COUNCIL MINUTES
June 8, 2004
13. PUBLIC HEARINGS (Continued)
City Manager David Rudat noted that the state budget deficit creates concerns and unknowns in
the City budget; noting it is anticipated there will be a revenue loss of $1,8 million to the General
Fund and $1.3 million to the Redevelopment Agency, Since the State budget has not yet been
adopted, he recommended the Council approve the budget as proposed, with the ability to revise
budgetary estimates as needed in January 2005 at a mid-year review, He did not anticipate
the state budget issue to be settled until November when there will be one, or maybe two,
initiatives on the ballot; and noted the City's economy should improve as the general economy
improves,In the meantime, the budget process will continue with programmed savings, vacant
positions,and consideration of catastrophic reserve funds, Finally, he acknowledged and thanked
all budget staff, department heads, and other staff who for their efforts in the preparation of
this
budget.MAYOR MURPHY OPENED THE PUBLIC
HEARING Arlen Craig, Address on File, spoke on the need for more funding for parks and
park
development.MAYOR MURPHY CLOSED THE PUBLIC
HEARING
Discussion Mayor pro tem Cavecche commended the City staff on the beautiful easy-to-
read budget. She expressed her appreciation that the staff had foresight to set reserve funds aside
to cover this expenditures this year. She requested a report on all Orange County cities,
with information on their reserve policies, budgets and
reserve fund amounts,City Manager David Rudat reported that information
will be provided,Mayor pro tem Cavecche stated that the next two years will be tight, based on
an anticipated loss of an additional $1 million from the state; which will require the Council
to make tough decisions on the use of catastrophic reserves, She appealed to the community to
vote to protect local govemment funds on a November ballot initiative, as local agencies do a
better job in providing services and being responsive to the needs
of the community.Councilmember Ambriz commented that the new more user-friendly web site
for the City of Orange will provide an exciting communication tool to the public regarding
the budget and other City information, He agreed the budget situation presents a scary picture for
the next two years.He stressed that the City needs to carefully review how it is spending
money and time; and commended staff for putting
the budget information together,Councilmember Coontz commented that she has observed the budgetary process
for a few years,noting that every ten years the City experiences the need to
address difficult issues, She commended the staff for their easy to read budget and dedicated
work. She
CITY COUNCIL MINUTES June 8, 2004
13. PUBLIC HEARINGS (Continued)
the Council prioritize projects and specify items considered most important as sometimes
projects can get shelved and not be returned.
Councilmember Alvarez asked about the decrease over last year in the emergency transport
program.
City Manager David Rudat assured Council that the emergency transport program is exceeding
its original goals of being self-sustaining, He reported that in past years, Medicare paid a
higher proportion of the fees charged, but the Federal government has reduced reimbursements
of Medicare, The budget reflects a decrease, but is still above what the staff originally
proposed.A study on the emergency transport program will be forthcoming to the
Council.Mayor Murphy commented on the budget document being easy to read with a great deal
of documentation; and agreed that the budget will create a tough situation for the City over the
next couple years, He further remarked on the unfortunate reality that local agencies are having
to pay for past problems at the state level. He suggested a modification to the General
Fund Balance table which would give an estimated reserve and unreserved fund balance as of June
30,2005, which would provide a more clear reflection of the
totals.He referred to the budget as well thought out with a distinct plan of action, He also
commented that the City would love to spend more on a variety of projects, however the City needs to
keep in mind the possibility of things getting worse before improving. He expressed concern over
a state proposal to exchange funds at the city level with property tax versus sales tax; as he did
not want the City to lose its impetus in being active with the business community and its
investment in that important
community,Council
Action:RESOLUTION NO.
9866 A Resolution of the City Council of the City of Orange adopting said City's Budget for
the Fiscal Year 2004-05 and relating to transfers of funds between and
within appropriations,transfers between funds, and
additional appropriations,MOTION -
Murphy SECOND - Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved
to approve Resolution No, 9866,PAGE
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CITY COUNCIL MINUTES
June 8, 2004
13. PUBLIC HEARINGS (Continued)
RESOLUTION NO. 9867
A Resolution of the City Council of the City of Orange adopting the Appropriations Limit for the
Fiscal Year 2004-
05.MOTION - Murphy
SECOND - Ambriz AYES -
Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to
approve Resolution No, 9867, as revised,MOTION - Alvarez
SECOND - Coontz AYES -
Ambriz, Alvarez, Mayor
Murphy, Coontz, Cavecche Moved to find that the
portion of the FY 2004-05 Budget subject to the Gann Limit IS 54,404,737, and
thereforewithin the limit.MOTION - Alvarez SECOND - Ambriz
AYES - Ambriz, Alvarez,
Mayor Murphy, Coontz,
Cavecche Moved to approve the Seven Year Capital
Improvement Program for the period ofFY 2004-05 to FY 2010-11.13.2
GENERAL PLAN AMENDMENT
NO. 2004-0003 - OPEN SPACE AND CONSERVATION ELEMENT OF THE GENERAL
PLAN - STORM WATER QUALITY Time set for public hearing
to
consider General Plan Amendment No. 2004-0003, amending the Open Space and Conservation Element
of the General Plan to address Storm Water Quality,The City of Orange is
required by the Santa Ana Regional Water Quality Control Board Third Term National Permit Discharge Elimination
System (NPDES) Permit to review its General Plan and make any necessary amendments
to ensure watershed and storm water quality management are considered as specified in
the Permit by July 1, 2004, The proposed General Plan Amendment addresses current deficiencies and
brings the City's General Plan into compliance with the Permit.Director of
Community Development Alice
Angus provided a brief staff report,MAYOR MURPHY OPENED THE PUBLIC
HEARING PAGE 16
CITY COUNCIL MINUTES June 8, 2004
13. PUBLIC HEARINGS (Continued)
THERE BEING NO SPEAKERS, MAYOR MURPHY CLOSED THE PUBLIC HEARING
Discussion:
Mayor pro tem Cavecche inquired about the language in Policy 1.5 added to the Open Space and
Conservation Element. She asked if, in receiving water limitations assigned by the Water
Quality Control Board, the policy refers to amounts or TMDLs (Total Maximum Daily Loads)
not yet assigned,
Director of Public Works Harry Thomas responded that TMDLs are already assigned for San
Diego Creek and Upper Newport Bay; and that the Santa Ana River will likely have that kind of
regulation placed upon it in the near future, He anticipates that the City will need to participate
in more standards within the next ten years,
Councilmember Coontz asked what other general elements are p<L"! of the Open Space and
Conservation Element.
Director of Community Development Alice Angus replied Open Space and Conservation
Element deals with trails, parks, and recreation areas and water bodies; and will be addressed as
part of the comprehensive General Plan update in 2005,
Council Action:
MOTION - Alvarez SECOND -
Ambriz AYES - Ambriz,
Alvarez, Mayor Murphy, Coontz, Cavecche Find the General
Plan Amendment categorically exempt from the provisions of the California Environmental Quality Act
per State CEQA Guidelines Section 15308 (Class 8, Actions by Regulatory Agencies for
Protection of the Environment),RESOLUTION NO. 9878
A Resolution of
the City Council of the City of Orange approving an Amendment to the Open Space and Conservation
Element of the City of Orange General Plan to comply with the requirements of the
Santa Ana Regional Water Quality Control Board Third Term National Permit Discharge Elimination
System Permit.Applicant: City of
Orange MOTION - Alvarez SECOND -
Ambriz AYES - Ambriz,
Alvarez, Mayor Murphy,
Coontz, Cavecche Moved to approve Resolution No, 9878,
PAGE 17 r
CITY COUNCIL MINUTES
June 8, 2004
14. PLANNING AND ENVIRONMENT - None.15.
ADJOURNMENT The
City Council adjourned at 7:45 p,m" in memory of Ronald Reagan, 40th President of the United
States, to a Study Session on June 22, 2004, at 3:00 p,m, in Conference Room C, to review
the Master Plan of Grijalva Park extension property and design of the gymnasium/sports center.
The
next regular Council meeting is scheduled for June 22, 2004 at 4:30 p.m.e-
IH
MARY, HY
CITYCL RK
KfARK A. MURPHY.
MAYOR
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