HomeMy WebLinkAbout2_27_2001 - Council MinutesAPPROVED BY CITY COUNCIL ON MARCH 13, 2001
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING February 27, 2001
The City Council of the City of Orange, California convened on February 27, 2001 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 Bob Dargatz, Immanuel Lutheran Church
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Coontz
1.3 ROLL CALL
PRESENT - Slater, Alvarez, Mayor Murphy, Coontz ABSENT -
None 1.4
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Murphy
announced the Council meeting will be adjourned in memory of Connie Chestnut, community
volunteer.The following
employees received Service Recognition Awards: (C2500J.4.18)Ruben Hernandez -
Water; Daniel Norman - Police; Carol Rook - CommunityServices;John Loertscher - PublicWorks; Mario
Anchante - Community Services;Randy Largent - Water; Glen Waipa - Police.A
Proclamation was presented to Larry Kosmin, DVM, honoring
him as ROP's (Central County Regional Occupational Program) 2001 Business Leader of the
Year. (S 1200.0)A presentation was made by Keith Regan, Executive Director,
Orange Elderly Services,Inc. regarding the financial status of Orange Elderly Services
and the Annual Audit.A2100.0 AGR-0974.P)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 PAGE 1
CITY COUNCIL MINUTES February 27, 2001
3. CONSENT CALENDAR (Continued)
item from the Consent Calendar, all items removed shall be considered immediately
following action on the remaining items on the Consent Calendar.
3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council
agenda of a regular meeting of February 27, 2001 at Orange Civic Center, Main
Library at 101 N. Center Street, Police facility at 1107 North Batavia, the
Eisenhower Park Bulletin Board, and summarized on Time-
Warner Communications, 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.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 February 8 and 15,
2001.ACTION:
Approved.3.3 Receive and file the City Treasurer's Report, period ending January 31,
2001.C2500.
F)ACTION:
Approved.3.4 Request approval of City Council Minutes, Regular Meeting, February 13,
2001.ACTION:
Approved.3.5 Consideration to waive reading in full of all ordinances on the
Agenda.ACTION:
Approved.
AGREEMENTS 3.6 First Amendment to Consultant Agreement between Hirsch and Associates and
City of Orange for Santa Fe Depot Park Improvements. (A2100.0 AGR-
3452.1)SUMMARY: It is recommended that the City Council approve the
first consultant agreement between the City and Hirsch and Associates Inc. in the amount of $2,
346.47.The City is amending the contract to pay the consultant for extra design services
for and purchase of three bronze plaques for the Millennium Clock and Veterans
Fountain. The costs for the extra work and purchase of the plaques are offset by the fundraising
of the Millennium Commission and Veterans Committee. The Santa Fe Depot project
has been completed with the notice of completion and, therefore, all contractual
obligations with the consultant and contractor have
been completed.ACTION: Approved the first amendment of the consultant agreement between
the City and Hirsch and Associates, Inc. for the Santa Fe Depot Park Improvements in
the amount of $2,346.47, and authorized the Mayor and City Clerk to execute
the consultant agreement on behalf of
the City.
CITY COUNCIL MINUTES February 27,2001
3. CONSENT CALENDAR (Continued)
FISCAL IMPACT: Sufficient funds exist for this project in account no. 500-
7021-485100-0970 (Santa Fe Depot Park Improvement) in the amount of $2,
346.
47 APPROPRIATIONS 3.7 Appropriation for Consultant Agreement for Master Plan of Parks,
Recreation and Facilities. (
C2300.H)SUMMARY: Approval of an appropriation in the amount of $9,680 for
the consultant agreement between the City and Purkiss-Rose, RSI for the Master
Plan of Parks,Recreation and Facilities. The second amendment was for a fee
increase for Purkiss-Rose, RSI's sub-consultant, Hogle-Ireland, to perform additional
work on the fee study.ACTION: Approved an appropriation in the amount of $
9,680 from Park, Acquisition and Development Fund (510) unappropriated reserves to
the Master
Plan of Parks account 510-7021-485100-0008.FISCAL IMPACT: Adequate unrestricted
fund balance is available in Fund 510 (
Park Acquisition and Development Fund) for this appropriation.3.8 Appropriation of funds to initiate the
design of traffic signals at the intersections of Serrano and Yellowstone and
Serrano and Mt. McKinley. (S4000.S.3.3)SUMMARY: In anticipation of
the increase in traffic volumes on Serrano Avenue following its extension to Nohl
Ranch Road, City staff recommends the installation oftwotraffic signals atthe intersections
of Serrano/Y ellowstone and Serrano/
Mt. McKinley to replace the existing all-way stops.ACTION: Appropriated $
4,700 from Fund 285 UnappropriatedReserves into
account no. 285-5032-483100-6075 (Traffic Signal at Serrano/Yellowstone).
Appropriated 4,700 from Fund285 Unappropriated
Reserves intoAccount No. 285-5032-483100-6192 (Traffic Signal at Serrano/Mt.
McKinley).FISCAL IMP ACT: There is
an adequate fund
balance for Fund 285 Unappropriated Reserves to cover the recommended appropriations.CLAIMS C3200.0)
3.9 The City
Attorney recommends that
the Orange City
Council deny the
following Claim(s) for damages:a. Colin Gee b. Stephanie Chang FISCAL IMPACT:
None.ACTION:
CITY COUNCIL MINUTES February 27,2001
3. CONSENT CALENDAR (Continued)
CONTRACTS
3.10 Project S.P. 3354 - Award a Professional Services Design Contract to Integrated Design
Services, Inc. for the seismic retrofit design of City Hall and renovation of the
Administration building and basement.SUMMARY:
This contract authorizes the design consultant to review existing building plans,
reports, conceptual architectural plans, and structural calculations and provide structural
engineering and architectural construction documents for the seismic retrofit of the
City Hall complex and renovation of the Administration building and basement. Re-roofing
of all buildings will also be accomplished with the retrofit and remodel project.The
approval of a 20% contingency ($64,000) for additional design services will help mitigate
unforeseen conditions in the existing buildings.ACTION:
Continued to March 13,2001.FISCAL
IMP ACT: Funds are budgeted or are available in the following accounts:500-
5011-
481105-
2976 550-5011-
481105-2976
3,995,493 620,
403 Total $4,615,
896 City Hall Seismic
Retrofit)City Hall Seismic Retrofit)3.11 Award of contract to Baxter-Griffin Company, Inc.
for the installation of LED units at traffic signals City
wide. (A2100.0 AGR-37 I I)SUMMARY: The City is planning to replace
the existing traffic signal heads with LED units throughout the City using a rebate
program from SCE. Following an invitation to bid, Baxter-Griffin Company, Inc. has been
found to be
the lowest responsible bidder to perform this project.ACTION: Appropriated $72,
414.00 from Fund 340 Unappropriated Reserves into Account No. 340-
5032-483100-6464 (LED Replacement Rebate Program) to be used for the installation cost of
the LED units. Authorized the award of acontract to Baxter-Griffin Company, Inc. in the amount
of $72,414.00 for the installation of LED units for traffic signals,
and
authorized the Mayor and City Clerk to execute the contract accordingly.FISCAL IMPACT:
Funds for this project will be
available
in account number 350-
5032-483100-6464 following the Council'saction.RESOLUTIONS
REMOVED AND HEARD SEPARATELY)3.12 RESOLUTION NO. 9396 (C2500.J.4.6)A Resolution
of the City Council of the City of Orange relating to
the Classification Compensation, and Terms of Employment of Executive
Directors and
CITY COUNCIL MINUTES February 27, 2001
3. CONSENT CALENDAR (Continued)
Philip Knypstra, 5701 Rockinghorse Way, commented the salaries for Top Management
personnel are too high based on his research; and felt the salaries should be published.
Councilman Slater stated he supports this Resolution because of the need to keep Top
Managers fairly compensated. However, this also includes benefits to the City Council
which he does not agree with; but that is such a minor part of the package that he will
support the Resolution.
MOTION - Alvarez SECOND -
Coontz AYES - Slater,
Alvarez, Mayor Murphy, Coontz ACTION: Approved.3.
13 RESOLUTION
NO. 9415 (A2100.0 AGR-3642)A Resolution
of the City Council of the City of Orange finally accepting the completion of a
certain public work and improvement; Bid No. 001-03; D-134; R&L Sewer; Fernside
Street, Crystal View Avenue, Glenside Street Storm Drain Improvements.
ACTION: Approved.
3.14 RESOLUTION NO. 9416 (A2100.0 AGR-
3630)A Resolution of the City Council of the City of Orange finally accepting the
completion of a certain public work and improvement; Bid No. 990-46;
Hollister Construction Company; Metrolink Station
Restroom Improvements.
ACTION: Approved.REMOVED AND
HEARD SEPARATELY)3.15 RESOLUTION NO. 9417 (S4000.
S.4)A Resolution of the City Council of the City of Orange temporarily closing a
section of Collins Avenue from Main Street to Batavia Street for a
special event.
Z-Car Exhibition)The Director of Public Works explained there has been a complaint
from a neighboring business of this special event. However, there have been no other
reports of incidences and the event has always been successful
and handed effectively.Mr. Greg Smith, Motorsports Industries, thanked City staff for their
efforts in assisting with their annual event. They have always tried to have as little impact as
possible to the surrounding businesses and work closely with their neighbors. He
outlined steps they have taken to minimize impacts
to adjacent
CITY COUNCIL MINUTES February 27, 2001
3. CONSENT CALENDAR (Continued)
MOTION - Slater SECOND -
Alvarez AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to approve
Resolution No. 9417.3.16 RESOLUTION
NO. 9418 (C2300.E. GPA-5-00)A
Resolution of the City Council of the City of Orange upholding the recommendation of
the Planning Commission and amending the Circulation Element of the General Plan by
updating the Bikeways Master Plan.General
Plan Amendment No. 5-00, Applicant: City of Orange
ACTION: Approved.
3.17 RESOLUTION NO. 9419 (A2100.0 AGR-3706.
I)A Resolution of the City Council of the City of Orange establishing a
Deferred Compensation Plan under Section 457 of the Internal Revenue Code; approving (I)
a Service Provider Agreement by and between the City of Orange and American
General Retirement Services Company and (2) a Custodial Agreement by and between the City
of Orange andV ALIC Trust Company; and authorizing certain individuals to act on
behalf of the Deferred Compensation
Plan.ACTION:
Approved.MOTION - Alvarez
SECOND - Coontz AYES -
Slater, Alvarez, Mayor Murphy, Coontz Item 3.
10 was continued to March 13,2001. Items 3.12 and 3.15 were removed and heard separately.
All other items on the Consent Calendar were approved as recommended.END
OF
CONSENT CALENDAR 4. REPORTS
FROM MAYOR MURPHY - None.5.REPORTS FROM
COUNCILMEMBERS TAPE 1070 5.1 Councilmember
Slater - Request Council send a letter to the Board of Supervisors requesting a formal response
and explanation for an apparent eastern shift in landing patterns into the John
Wayne Airport. (Tl200.1.1.B)PAGE 6
CITY COUNCIL MINUTES February 27, 2001
Councilman Slater reported a draft letter had been prepared to be sent to the County Board of
Supervisors regarding the flight patterns into John Wayne Airport; and with a few modifications
to the letter, he suggested it be sent with the Mayor's signature. In addition, the cities of Villa
Park, Costa Mesa, Newport Beach and Tustin have adopted Resolutions requesting continued
restrictions of operations at John Wayne Airport. He suggested a similar Resolution be
agendized for the next Council meeting.
Councilmember Coontz stated she has been told the flight patterns are under the control of the
FAA; and suggested sending the letter to the FAA.
MOTION - Slater SECOND -
Murphy AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to send
a letter to the FAA addressing specific questions such as landing patterns at John Wayne Airport, with
a copy to the Orange County Board of Supervisors requesting their assistance.6. REPORTS
FROM
BOARDS, COMMITTEES, AND COMMISSIONS TAPE 1270 6.1 Re-
appointment of citizens to the following Committees; all terms to expire June 30,2003. (Continued
from February 13, 2001.)AUDIT COMMITTEE (
terms to expire January, 2003)Eric H.
Woolery, David E. Sundstrom, Dwight Nakata, G. David Piper (alternate)BUILDING BOARD
OF APPEALS/HOUSING BOARDOF APPEALS Frank Bauman,
Jim Brennan, Jack Selman COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM COMMITTEE Victoria James,
Mary Ellen Manning, Bea Vega, Richard Ledesma, J an MickelsonCOMMUNITY VIDEO
ADVISORY BOARD Marcia Salley,
Jerry Coker, Pat Buttress, Bob Mickelson INVESTMENT ADVISORY
COMMITTEE (terms to expire January, 2003)James Hansen,
Harold Jackson, Charles Simons Mayor Murphy
noted the expiration dates for the terms of the Investment Advisory Committee and the
Audit Committee will be January 2003 per Resolutions 8801 and 8802 respectively.The terms
for all other Committees will expire June 30, 2003.MOTION - Murphy
SECOND - Alvarez AYES -
Slater, Alvarez, Mayor
Murphy, Coontz Moved to approve re-appointments,
with terms to expire as noted.PAGE 7
CITY COUNCIL MINUTES February 27, 2001
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS(continued)
6.2 Investment Oversight Committee Second Quarter Report for the Quarter Ending
December 31, 2000. This report summarizes the activity of the Investment Oversight
Committee. (ORI800.0.27.16)
MOTION - Coontz SECOND -
Alvarez AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to receive
and file report.7.ADMINISTRATIVE REPORTS
TAPE 1450 7.1 Report
from the City Attorney concerning a candidate's request for the City to waive debt owed
for the cost of his candidate's statements. (EIIOO.O)The City Attorney
reported that Mr. Juan Pablo Serrano-Nieblas, a former City Council candidate, currently
owes $1239 for the printing of past candidate statements. He explained that candidates are
required to prepay an estimated fee to have their candidate statement printed on the ballot.
However, if a candidate is proved to be indigent they are not required to pay the cost in advance,
but are billed on a monthly basis for the actual cost after the election. Mr. Serrano-Nieblas was
informed of the policy and signed a statement to this effect.Mr. Juan
Pablo Serrano-Nieblas, 224 N. Olive, pointed out the law merely states he can not be charged
prior to the election, but can be charged after the election; and felt his freedom of speech and
civic participation is being hindered. He has been running for CouncillMayor seats since 1982,
but his current financial condition precludes him from making his monthly payments.Council
discussed the fact that no candidate is prohibited from putting their name on the ballot,as
long as they meet minimum requirements, regardless of financial circumstances; and there is no
obligation to present a candidate statement. Candidates have the option to collect campaign contributions
and spend those contributions on advertising, including a candidate statement.Once
an obligation is entered into, it should be honored; and there are many other opportunities available
for free speech.Councilman
Alvarez stated that he would make a contribution to Mr. Serrano-Nieblas' debt so as
not to discourage him from running again.
MOTION - Slater SECOND -
Alvarez AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to deny
the request from Mr. Juan Pablo Serrano-Nieblas to waive the debt owed for the cost of
his candidate statement.8. REPORTS
FROM CITY MANAGER - None.PAGE 8
CITY COUNCIL MINUTES February 27,2001
9. LEGAL AFFAIRS
9.1 ORDINANCE NO. 4-01 (FIRST READING) (A2500.0 Capital Facilities
Fees)An Ordinance of the City Council of the City of Orange Amending Sections15.38.060
and15.38.080 of the Orange Municipal Code deleting the codified fee rates from the Fire
Protection Facilities Program Areas and providing for the rates to be adjusted annually by Resolution
of City
Council.MOTION - Coontz
SECOND - Alvarez AYES -
Slater, Alvarez, Mayor Murphy, Coontz Moved that
Ordinance No. 4-01 be read by title only and same was set for second reading by the preceding
vote.10.
NOTICED HEARINGS 10.
1 PROPERTY ACQUISITION BY EMINENT DOMAIN, 1201 W. LA VETA AVENUE:A2100.
0 AGR-3707)
Time set for a noticed hearing on resolution of necessity to acquire the following strip ofland for
the West La Veta Avenue Widening Project.
1201 W. La Veta Avenue Assessor Parcel Number: 390-
682-03 Property Owner:PRG Investment Equities, a California
Limited Partnership The Director of Public Works reported this is a strip ofland varying in width from 4 feet
to less than 8 feet. In order for the Council to acquire any property, they need to make
the findings that, 1) the public interest and necessity require the acquisition of the property for
the proposed project; 2) that the proposed project is planned and located in the manner that will
be most compatible with the greatest public good and the least private injury; 3) that the
property is necessary for the proposed project; and 4) that an offer has been made to the 'owner of
record of the property pursuant to California
Government Code.Councilmember Coontz commented she was glad to see that parkway trees will be part
of the project to enhance the taking of
existing landscaping.The City Attorney explained that the property owners have basically agreed to the
amount the City has offered; but other details still need to be
worked out.No public comments on
this item.RESOLUTION
NO. 9410 A Resolution of the City Council of the City of Orange declaring the public
interest and necessity of acquiring certain real property located at 1201 West La Veta
Avenue and authorizing the
acquisition thereof.
CITY COUNCIL MINUTES February 27,2001
10. NOTICED HEARINGS(continued)
MOTION - Slater SECOND -
Coontz AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to adopt
Resolution No. 9410.10.2 PROPERTY
ACQUISITION BY EMINENT DOMAIN, 1120 W. LA VETA AVENUE:A2100.0 AGR-
3708)Time set
for a noticed hearing on resolution of necessity to acquire the following strip ofland for the West
La Veta Avenue Widening Project.1120 W.
La Veta Avenue Assessor Parcel Number: 390-711-02
Property Owner:CRC Real Estate and Business Corporation, a California
Corporation
The Director of Public Works reported this strip ofland varies in width between II and 14.5 feet
and is 1959 square feet along with a temporary construction easement.
No public comments on this item.
RESOLUTION NO. 9411
A Resolution of the City Council of the City of Orange declaring the public interest and
necessity of acquiring certain real property located at 1120 W. La Veta Avenue and authorizing
the acquisition thereof.
MOTION - Alvarez SECOND -
Slater AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to adopt
Resolution No. 9411.10.3 PROPERTY
ACQUISITION BY EMINENT DOMAIN, 455 SOUTH MAIN STREET:A2100.0 AGR-
3709)Time set
for a noticed hearing on resolution of necessity to acquire the following strip ofland for the West
La Veta Avenue Widening Project.455 South
Main Street Assessor Parcel Number: 390-682-06
CHOCO Realty Company, a California Nonprofit
Corporation
Property Owner:
The Director of Public Works reported this strip of land varies in width between 4.5 and 7 feet
and is 2035 square feet.
No public comments on this item.
PAGE 10
CITY COUNCIL MINUTES February 27, 2001
10. NOTICED HEARINGS (Continued)
RESOLUTION NO. 9412
A Resolution of the City Council of the City of Orange declaring the public interest and
necessity of acquiring certain real property located at 455 South Main Street and authorizing the
acquisition thereof.
MOTION - Coontz SECOND -
Alvarez AYES - Slater,
Alvarez, Mayor Murphy, Coontz Moved to adopt
Resolution No. 9412.10.4 PROPERTY
ACQUISITIONBY EMINENT DOMAIN, 1231 W. LA VETA AVENUE:A2100.0 AGR-
3710)Time set
for a noticed hearing on resolution of necessity to acquire the following strip ofland for the West
La Veta Avenue Widening Project.1231 W.
La Veta Avenue Assessor Parcel Number: 390-682-08
Property Owner:CHOCO Realty Corporation, A California Nonprofit
Corporation, as to an undivided one-half interest;
and PRG Investment Equities, L.P., A California
Limited Partnership, as to an undivided one-
half interest The Director of Public Works reported this strip of land varies in width between 4 and 4.
5 feet and is 790 square feet, along with a temporary
construction easement.No public comments on
this item.RESOLUTION
NO. 9413 A Resolution of the City Council of the City of Orange declaring the public
interest and necessity of acquiring certain real property located at 1231 West La Veta
Avenue and authorizing the
acquisition thereof.MOTION -
Slater SECOND - Alvarez
AYES - Slater, Alvarez, Mayor Murphy, Coontz Moved
to adopt Resolution No. 9413.11.
RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY PAGE
11
CITY COUNCIL MINUTES February 27,2001
12.RECESS TO CLOSED SESSION TAPE 2280
The City Council recessed at 5:47 p.m. to a Closed Session for the following purposes:
a. Conference with Real Property Negotiator pursuant to Government Code Section
54956.8:
NOTE: Item #1 was not discussed)
I) Property: Parcel located at 920 West La Veta Avenue
Negotiating Parties: City of Orange and R.B. Newcom Enterprises
Under Negotiation: Price and Terms of Payment
2) Property: Parcel located at Northwest Corner of Spring and McPherson
Negotiating Parties: Union Pacific Railroad and City of Orange
Under Negotiation: Price and Terms of Payment
b. Public Employment, pursuant to Government Code Section 54957.
Title: Assistant City Manager
NOTE: This Item was not discussed)
c. Conference with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation:
Diane
Thomas v. City of Orange, et aI., Orange County Superior Court Case No.00CC04546.
d.
Conference with Legal Counsel - anticipated litigation pursuant to Government Code Section 54956.
9(b) (one potential case, Employment Solicitation Ordinance).e. 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 ANNOUNCEMENTS - Councilman
Alvarez introduced Timothy Salas, and his father Ed Salas, and announced
the establishment of the Timothy Salas Trust Fund. Timothy is 10 years old and was
diagnosed with a brain tumor last year. He is currently undergoing radiation and chemo therapy. The
Trust Fund was established to collect donations to help defer costs and will be used specifically
for medial and education expenses. The Fund has been set up at the Washington Mutual Bank
at 615 E. 1 st Street, Tustin, CA; or donations can be sent in care of Mike Alvarez at
360 S. Glassell, Orange.13.PUBLIC COMMENTS
C2500.N)Mark Burkhardt, 3447
E. Ruth Place, Chairman of the McPherson Neighborhood Preservation Committee, presented a
petition from the Committee in opposition to the development of the railroad easement located
south of Chapman A venue to LaVeta A venue. They supporta bike/walking path
along the street and not behind their homes. He also read a letter form Mr.David Hepp objecting
to the development of a trail on the railroad property.PAGE 12
CITY COUNCIL MINUTES February 27, 2001
14. PUBLIC HEARINGS
14.1 WATER SERVICES RATES
TAPE 2750
C2500.P)
Time set for a public hearing to consider the adoption of specified rates, fees and charges for
water usage and services. Water rates have not been revised since 1993 and water related fees
and user charges have not been revised since 1990. The proposed ordinance will make changes
to existing rates, fees, and user charges so that revenues will match expenses and adequate
reserves will be maintained within the framework of a seven year plan prepared by municipal
consultant Hilton Farnkopf and Hobson. A water rate increase of 9% per year for the next three
years is recommended. Inequities within the current water rate structure will be adjusted and
charges will be more appropriately apportioned to individual customers. In addition to the
recommended changes to fees and user charges, an indexing method is proposed for water rate
adjustments for those operating expenses determined by other agencies and utilities.
STAFF REPORT
The Director of Public Works reported water rates have not been revised since 1993 and water
related fees and user charges have not been revised since 1990. A recent study was conducted
and report prepared by municipal consultant Hilton Farnkopf and Hobson. The major goals of
this study were to meet revenue requirements, establish rate equities, and promote water
conservation. Various alternatives were reviewed with the goal to maintain a 25% fund balance.
The findings of the study concluded with a recommendation for a 9% rate increase for the next
three years, an adjustment of the inequities within the current rate structure and a proposed
indexing method for future pass-through
increases.He reviewed the current rates and operating expenditures noting that pass-through
costs represent 58% of the operating expenditures. Pass-through costs are determined by
other agencies and utilities and are specifically limited to four areas - energy costs for electricity and
natural gas,Orange County Water District Replenishment Assessment Charges, purchased water
costs and debt service. He noted that part of the proposal states that if an increase in pass-
through costs are in excess of what is projected, the City Manger would have the authority
to approve an adjustment to the rates, up to 6%,
in anyone year.He compared the current rates and proposed charges, noting that both the
current and proposed rates are lower than the average Orange County city rates for low, medium
and
high use households.Three additional proposals include the elimination of the current $50 deposit
collected on new accounts; establishing a new delinquent penalty fee of 10% and increasing
the turn-off service charge fee
from $20 to $30.He further reported there is no proposal to transfer water fees to the
General Fund. The Water operation should be run as an enterprise account and is not supported
by the
General Fund.TAPE 4150 Councilmember Coontz asked about reviewing the pass-through charges
on a more regular basis,the number of wells in the City, and the degree of the City's
possessive interest
CITY COUNCIL MINUTES February 27, 2001
14. PUBLIC HEARINGS (Continued)
The Director of Public Works stated there is a proposal to do an annual review of pass-
through rates because of the volatility of costs, and any changes can be brought back to Council.
He stated there are 16 wells in the City and the City is limited to pumping 75% of our water
from groundwater. Most of the groundwater basins are in the flat area of the County, and
currently there are no adjudicated water
rights.Councilmember Coontz spoke on the impQrtance of water conservation especially
for developments in East Orange, and the need to ask developers to be involved in
conservation
programs.Councilman Alvarez pointed out a letter had been received from the Apartment Association
of Orange County stating that the water rate proposal will negatively impact multi-
family units.The Director of Public Works stated they randomly polled water bills in order
to make comparisons. They found that in the smaller multi family units, the increase would
range from negative .7% for a duplex to 7.13% for a five-plex. This indicates that the
smaller units are currently subsidizing other customers in the system and would benefit from
the new rate structure. The larger complexes would see a 24% to 28% increase,
indicating they have probably been subsidized all along
by other users.MAYOR MURPHY OPENED THE PUBLIC
HEARING TAPE 4900 Matt Petteruto, Apartment Association of Orange County, requested a
two week postponement as they have not had enough time to fully review the report and the
affect on apartment buildings. The report appears to penalize multi family units with
exceedingly
high rate Illcreases.Councilmember Coontz pointed out that the Association sent letters to the Council
but did not send the letters to City staff; and it was her understanding the Association was
not available to meet with staff prior
to the hearing.Dennis Bilodeau, Cully Drive, Orange County Water District Representative,
clarified that the City could pump 100% of their water from ground water but would have
to pay exceedingly high rates to do so. In reviewing the report, he noticed it assumes that the
Orange County Water District would be raising replenishment rates by about $7 per acre foot per year.
However, it is actually closer to $8 and could be in excess of an additional $2 above that.
He also questioned the need for a surcharge for residences
in unincorporated areas.Phillip Knypstra, 5701 E. Rockinghorse Way, reviewed a spreadsheet he submitted
and spoke on
promoting water conservation.Marvin Sobel, 411 N. Meadowbrook, wanted to ensure that the rate
adjustments would solve inequities and would not affect low income residents; and spoke
on water conservation.Bob Bennyhoff, Orange Park Acres, spoke in support of the rate increase, and that
it
is long
CITY COUNCIL MINUTES February 27, 2001
14. PUBLIC HEARINGS (Continued)
MAYOR MURPHY CLOSED THE PUBLIC HEARING TAPE 5970
Council discussed the need for on-going reviews of rate adjustments and whether to approve
an annual plan, a 2-year plan or
3-year plan.The Director of Public Works reported this is part ofa larger 7 year financial plan
with a current proposal for just the first 3 years. At the end of the first 3 years, another 3 year
proposal will be brought back at another public hearing. However, the Council would be able to
bring this back for a public hearing at any time if the need arises. A long range plan will
establish stability and predictability for long range financial planning and give the City a basis upon
which to project.Also, the administrative costs of preparing a rate structure report every year would
add to the overall costs. With regard to the indexing model, it is being proposed in order to
react quickly touncontrollable costs - but only in the 4
areas discussed.The Director of Public Works also pointed out that this has been very much a teameffort -
that the Finance Department has been very involved and will continue to be involved in all
future
reviews.Councilman Slater congratulated staff on a great job and agreed with the idea that they have
to plan in advance as long as there are annual reviews. He wished the Apartment Association
had made more of an effort to meet with City staff, but can probably still do that before the
final reading of the
Ordinance.Councilman Alvarez stated that with the oversights in place, he did not have a problem with
a long range
plan.Councilmember Coontz suggested this could be subject to an annual review during the
budget
process.Mayor Murphy stated they have to make sure they are meeting revenue requirements and
pointed out the affect this has on all City services. He supports the equity issue as there is a wide
range of housing and business types and a one-rate scenario
is outdated.Council discussed the fact that as long as there are annual reports, a 3 year plan
would be sufficient. It was also suggested that between the first and second readings of the
Ordinance the Apartment Association meet with
City staff.
TAPE #2 The City Attorney suggested the following additional wording for the proposed
Ordinance: The following sentence be added to Paragraph 2: "Provided that the Director of Public
Works shall report annually to the City Council prior to any annual increase approved by
this Ordinance."He proposed the following sentence be added to Paragraph 3: "However,
prior to implementation, at a regularly scheduled meeting, the City Manager shall prepare a report
to the City Council identifYing the proposed pass through rates and the
need therefore."
CITY COUNCIL MINUTES February 27, 2001
14. PUBLIC HEARINGS (Continued)
ORDINANCE NO. 5-01 (FIRST
READING)An Ordinance of the City Council of the City of Orange amending and revising the
Master Schedule of Fees and Charges to adopt new water rates and new water fees and
charges.MOTION - Slater
SECOND - Coontz AYES -
Slater, Alvarez, Mayor Murphy, Coontz Moved that
Ordinance No. 5-01 be read by title only and same was set for second reading by the preceding
vote, with the following additional language: Paragraph 2 - Provided that the Director of Public
Works shall report annually to the City Council prior to any annual increase approved by this
Ordinance; and Paragraph 3 - However, prior to implementation, at a regularly scheduled meeting, the
City Manager shall prepare a report to the City Council identifYing the proposed pass through
and the need therefore.15. PLANNING AND
ENVIRONMENT - None.16. ADJOURNMENT MOTION - Alvarez
SECOND - Murphy
AYES - Slater, Alvarez,
Mayor Murphy, Coontz
The City Council adjourned at 9: 10
p.m. in memory of Connie Chestnut, community volunteer.L~~~/A'Z CASSANDRA J. C THCART,
CMC CITY CLERK
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