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10/10/2000 - Council Minutes - CC Minutes Reg Meeting APPROVED BY THE CITY COUNCIL ON NOVEMBER 14,2000 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING October 10, 2000 The City Council of the City of Orange, California convened on October 10, 2000 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 Reverend Ken Macklin, First United Methodist Church 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Presentation of Colors and Pledge led by Boy Scout Troop 241 Scout Master Dan Claypool 1.3 ROLL CALL PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS The Director of Community Services announced John Stratman representing Pacific Bell had a conflict and could not attend the Council meeting. Pacific Bell generously donated money which covered the costs of four concerts in the Park. Mayor Coontz suggested the Director of Community Services send a letter thanking Mr. Stratman for Pacific Bell's generous donation. Councilman Slater presented a proclamation to Warren Johnson, O.c. Fire Authority Chaplain, for heroism during an apartment fire in Orange. Mayor Coontz presented a proclamation to Dr. Eddie Hernandez, Chancellor, Rancho Santiago Community College District and Dr. Mark Rocha, President, Santiago Canyon College for the Joint Use Soccer Facility dedicated on August 25th. The City Manager presented an award from the Municipal Treasurer's Association United States and Canada to Helen Walker, City Treasurer. Mayor's Announcements: Walk Your Children to School Day was held October 4,2000 Millennium Clock Dedication will be held on October 15, 2000 at 3:00 p.m., Depot Park Mayor's Prayer Breakfast will be held October 19, 2000, 7:30 a.m., Phoenix Club PAGE 1 CITY COUNCIL MINUTES October 10, 2000 The Director of Community Services announced the Third Annual Children's Halloween Treats through the Streets will be held in the downtown Plaza area on October 26, 2000 from 4:00 p.m. to 7:00 p.m. 1.4 PRESENT A TIONS/ANNOUNCMENTS/INTRODUCTIONS (Continued) Mayor Coontz announced the Council will adjourn in memory of Beverly Nestande and read the following statement: "It is with deep sadness and loss that we adjourn this meeting in fond remembrance of Beverly Nestande dear friend of Orange who passed away Wednesday, September 27, 2000. Although slight in stature she stood tall in her efforts on behalf of abused children. She was a leader of men and women and her passion for life set a wonderful example for others. Community involvement was paramount to Bev who was an expert in raising funds and raising consciousness for important causes. She was an angel among us and we were all better for knowing her. We extend our sincere sympathy to her family as we adjourn in reverence and tribute to Beverly Nestande at our meeting on the 10th day of October, 2000." Mayor Coontz requested that all Councilmembers sign the letter which will be transmitted to her son. 2. PUBLIC COMMENTS The City Clerk announced she had received a letter requesting it be read into the record. Mayor Coontz asked the City Attorney the correct procedure. The City Attorney indicated the letter could be read into the record under public comments, however, the Council could not take any action on the request. The City Clerk read the following: "Letter received by the City Clerk's Office on October 10, 2000 from the Law Offices of Palmieri, Tyler, Wiener, Wilhelm & Waldron LLP, dated October 10, 2000, regarding: General Plan Amendment No. 3-00, Zone Change No. 1205-00, Conditional Use Permit No. 2339-00, Variance No. 2089-00, Nieupointe Enterprises/Barry Cottle Dear Ms. Cathcart: Please be advised that this firm represents Nieupoint Enterprises and Barry Cottle in connection with their applications pertaining to the above-referenced matters. It is my understanding that a rescheduled public hearing on these matters has been set before the Orange City Council for October 24, 2000. Because of certain opposition which has surfaced since the date of the public hearing before the planning commission on these matters and because of other issues which have arisen which may impact the decision of the City Council to either approve or reject these applications, it is the intention of the applicant on October 24, 2000 to request a further extension until November 28, 2000, which was the applicants' original request, of this public hearing in order to be adequately prepared to address all issues which might affect the decision of the City Council. PAGE 2 CITY COUNCIL MINUTES October 10, 2000 Accordingly, I respectfully request that during the public hearing portion of the 4:30 and 7:00 pm regularly scheduled sessions of the City Council meeting today, that you read into the public record the applicant's intention to request this further extension on October 24,2000. Thank you for your cooperation with this request. Very truly yours, Dennis G. Tyler." 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 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of October 10, 2000 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 ofthe City Clerk. 3.2 Request Council confirmation of warrant registers dated September 21 and 28, 2000. ACTION: Approved. 3.3 Request approval of City Council Minutes, Regular Meeting September 26, 2000. ACTION: Approved. 3.4 Consideration to waive reading in full of all ordinances on the Agenda. ACTION: Approved. AGREEMENTS 3.5 Agreement with LeMar Lundquist for house rehabilitation. (A2100.0 Agr.3617) SUMMARY: The City Attorney's office has negotiated an agreement with Mr. Lundquist to repair/replace the siding on his residential property located 133 South Shaffer Street. The City Council directed staff to negotiate a settlement to repair or replace the siding on Mr. Lundquist's residential property. PAGE 3 CITY COUNCIL MINUTES October 10, 2000 3. CONSENT CALENDAR (Continued) ACTION: Approved Settlement Agreement with Mr. Lundquist and authorized the City Manager to execute Agreement. FISCAL IMPACT: The actual cost of the agreement will not be known until the plywood is removed and an estimate is made of the necessary work. Funds are available in Account No. 740-1412-433100, SelfInsured Liability Fund. If the cost of the repair work exceeds $30,000, it will be brought back to the City Council, but the cost is expected to be less. 3.6 First Amendment to Attorney Services Agreement with Woodruff, Spradlin & Smart for personnel legal services. (A2100.0 Agr. 2886.A.l) SUMMARY: Woodruff, Spradlin & Smart Law Offices was retained to represent the City in two wrongful termination lawsuits. Legal costs have exceeded the City Manager's authority. ACTION: Approved First Amendment to Attorney Services Agreement with Woodruff, Spradlin & Smart and authorized Mayor and City Clerk to execute on behalf of the City. The City Attorney is requesting that an additional $60,000 be approved for continued legal services. FISCAL IMPACT: Funds are available in Account number 100-0301-426100-9865, Personnel Legal Services. 3.7 First Amendment to Berryman Henigar contract in the amount of $10,000 for GASB 34 Infrastructure Valuation Services. (A2100.0 Agr.3S81.1) SUMMARY: The City has previously contracted with Berryman Henigar for the completion of a pavement condition survey to be completed throughout the entire City. This amendment would require additional services to place a valuation upon these City street facilities in order to meet the requirements of Governmental Accounting Standards Board (GASB) Statement Number 34. ACTION: Approved the first amendment for Pavement Management Consulting Services to Berryman Henigar in the amount of $1 0,000. FISCAL IMPACT: Funds are available in Account 100-5001-426700 (Department of Public Works Administration - Contractual Services) in the amount of$2l,980. 3.8 Project No. D-134; CDBG Project - Fernside Street, Crystal View Aveuue, and Glenside Street Storm Drain Improvements, approval of plans and specifications and advertising for bids. (C2S00.M.17) SUMMARY: Plans and specifications have been completed for the storm drain construction on Fernside Street from Brentwood Avenue to Crystal View Avenue, on Crystal View Avenue from Fernside Street to Glenside Street, and on Glenside Street PAGE 4 CITY COUNCIL MINUTES October 10, 2000 3. CONSENT CALENDAR (Continued) from Crystal View Avenue to 180 feet northerly. The project is ready to be advertised for bids. The estimated construction cost is $328,680.00 ACTION: Approved plans and specifications and authorized advertising for bids for the CDBG storm drain construction project. FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and available in the following account: 310-9645-483400-1819 (Detail 16130) $435,000 (Community Dev. Block Grant) BIDS 3.9 Reject all bids received for Bid No. 001-08, and request authorization to re-advertise the project. (S4000.S.3.3) SUMMARY: The City received 8 bids for Bid No. 001-08 (Traffic Signal & Striping Modifications at various locations). Staff recommends that all bids be rejected and the project be re-advertised. ACTION: Rejected all bids received for Bid No. 001-08; authorized re-advertising the project. Katella & Handy Signal Lincoln & Orange-Olive Signal Chapman/Chandler Ranch Rd. Striping FISCAL IMPACT: Funding for the project is available in the following accounts: Lincoln & Canal Signal 284-5032-483100-6059 $105,000.00 Glassell & Taft Signal 284-5032-483100-6122 12,519.00 284-5032-485100-6122 38,000.00 550-5032-483100-6147 45,000.00 284-5032-483100-6146 48,691.24 272-5032-483300-3406 14,905.00 $264,115.24 3.10 Projects No. 2974 & No. 2975 - Approval of plans and specifications and authorization to advertise for bids the seismic retrofit of the City Yard Garage and Warehouse buildings. (P2S00.0.2) SUMMARY: Plans and specifications have been completed for the seismic retrofit of the City Yard Garage and Warehouse buildings. The project also comprises re-roofing of both buildings and ADA improvements, which included installation of a new elevator in the Garage building. The project is ready to be advertised for bids. The estimated construction cost is $875,340. ACTION: Approved plans and specifications and authorized advertising for bids for the seismic retrofit of the City Yard Garage and Warehouse buildings. PAGE 5 CITY COUNCIL MINUTES October 10, 2000 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funds are budgeted and available in the following accounts: 500-5011-481105-2974 $166,990.00 (City Yard Warehouse) 550-5011-481105-2974 $171,957.00 (City Yard Warehouse) 500-5011-481105-2975 $ 70,000.00 (City Yard Garage) 550-5011-481105-2975 $204,246.00 (City Yard Garage) 725-5028-481105-9851 $130,000.00 (Corporation Yard Improvements) Total $743,193.00 3.11 Award of Contract, Bid No. 001-05, Landscape Maintenance Assessment District Services to Lanco Landscape Management. (A2100.0 Agr. 3615) SUMMARY: It is recommended that the City Council award Bid No. 001-05 to Lanco Landscape Management in the amount of $171,600 for landscape maintenance services at the Santiago Hills (86-2) Shadow Ridge (82-1) and Sycamore Crossing (94-1) Landscape Maintenance Assessments Districts and reject all other bids. behalf of the City. ACTION: I) Approved the award of Bid No. 001-05 to Lanco Landscape Management in the amount of$171,600.00; and 2) authorized the Mayor and City Clerk to execute the contract on behalf of the City. FISCAL IMP ACT: Sufficient funds are available to pay for landscape maintenance services for the remainder of FY 00/01 in the following accounts: 100-7022-424301, Landscape Maintenance, $4,000; Account No. 290-7025-427100, Contractual Services, $2,400; Account No. 291-7026-424301, Landscape Maintenance, $100,000; Account No. 293-7024-424301, Landscape Maintenance, $8,000. CONTRACTS 3.12 Award of Contract - Bid No. 001-01; D-133; Featherhill Subdrain Project north of Meats Avenue. (A2100.0 Agr. 3614) SUMMARY: The project improvements include the installation of new 4 and 8 inch PVC perforated subdrain piping for interception of subsurface water seepage within the public right-of-way. ACTION: Awarded a contract in the amount of $176,000.00 to David T. Wasden, 3220 Star Canyon Circle, Corona, CA 92882, and authorized the Mayor and the City Clerk to execute on behalf of the City. FISCAL IMP ACT: Funds are budgeted and available III the Capital Improvement Program in the following account: 530-5011-483400-5105 $200,000 (Drainage Districts) PAGE 6 CITY COUNCIL MINUTES October 10, 2000 3. CONSENT CALENDAR (Continued) FUND TRANSFER 3.13 Change Order No. One for Hart Park Lighting (A2100.0 Agr.3S43) SUMMARY: It is recommended that the City Council approve change order number one to Building Energy Consultants in the amount of $6,547.92 for additional trenching for conduit and a modification to the switchgear of the main panel as part of the Hart Park Lighting Project. Since the project fund will need additional funding, a transfer from the Park, Acquisition and Development (510) unappropriated reserves in the amount of $6,547.92 is requested. ACTION: I) Approved Change Order No. One to Building Energy Consultants in the amount of $6,547.92; 2) Approved a transfer in the amount of $6,547.92 from Park, Acquisition and Development Fund (510) unappropriated reserves to the Hart Park Lighting Account, 510-7021-485100-0029; and 3) authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMP ACT: After the fund transfer is executed, there will be appropriate funds to pay for this Change Order in the following account: 510-7021-485100-0029 (Hart Park Lighting): $6,547.92. RESOLUTIONS 3.14 RESOLUTION NO. 9338 (A2100.0 Agr. 3616) A Resolution of the City Council of the City of Orange approving a Cooperation agreement with the Orange Redevelopment Agency relating to the Metrolink Station Restroom Improvements on North Atchison Street and approving the award of contract for Bid No. 990-46 to Hollister Construction Company. ACTION: Approved. 3.15 RESOLUTION NO. 9340 (C3300.0) A Resolution of the City Council of the City of Orange upholding the recommendation of the Planning Commission and granting an accessory second housing unit upon property located at 1802 North Kimbark Lane. ACTION: Approved. MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez All items on the Consent were approved as recommended. END OF CONSENT CALENDAR PAGE 7 CITY COUNCIL MINUTES October 10, 2000 4. REPORTS FROM MAYOR COONTZ 4.1 Board of Supervisors new proposal regarding Musick Jail negotiations and remote jail site (three top sites are within the sphere of influence of the City of Orange on the City's eastern borders). Mayor Coontz announced if it was not for newspaper articles she would not know what is being planned for the City's sphere of influence. During the first part of last week there was an article concerning the jail issue. The Mayor received a call from Supervisor Coad's office indicating there was an amendment to their agenda for their October 3' Board of Supervisor's meeting. This went out to the other board members from Chairman of the Board, Supervisor Smith. Most of the offices did not receive this information until Friday and it was a surprise. Mayor Coontz attended the Board of Supervisors meeting on October 3'd and spoke. The agenda item was a request from the cities of Lake Forrest and Irvine who have been involved in the Musick jail issue and tried to push forward issues for their own benefit. Mayor Coontz indicated she did not know why they wanted to form a new committee because there is an existing Blue Ribbon Committee. The City Manager is a member of the Blue Ribbon Committee and they were told they could not reveal their decisions and recommendations. The composition of the new committee was discussed with two representatives from Irvine, two from Lake Forrest, unknown representation from the Sheriff and it was unclear about the Blue Ribbon Committee. Mayor Coontz felt the City of Orange was being left out and this new committee was being formed to supplant the other one. It was announced the members would not vote. Mayor Coontz questioned why the sudden urgency. The goal was to have the new committee return with a report to the Board of Supervisors on Election Day, November 7'h. There was an amendment to the issue by Supervisor Coad which did not get anywhere. Supervisor Spitzer indicated there should be representation from Santa Ana and Orange, however he did go along with the idea. It was changed so there would be two representatives from the Blue Ribbon Committee, one representing Santa Ana and one representing Orange. The City Manager indicated he had not been notified of the first meeting. The question was asked when the court case would be announced and the County Counsel indicated he did not know. Mayor Coontz felt perhaps politically Chairman Smith would like this to be finished on his watch. Also, they would like to make some type of agreement ahead of time before the court decision because the judge may decide the environmental impact report is fine. Councilman Alvarez commented if the County is preparing for what will happen in the courts on Measure F, through the City Manager, as it comes down, the City should come up with its own strategy whatever the ruling is on Measure F. Mayor Coontz instructed the City Manager to discuss this with Council. Mayor Coontz commented Supervisor Coad tried to separate the long term jail from the Musick Jail Facility and was not successful. S. REPORTS FROM COUNCILMEMBERS - None .__.~---_._~..- -"'-"-'-'--. PAGE 8 CITY COUNCIL MINUTES October 10, 2000 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 6.1 Report from the Finance Director on the annual review and approval of the Statement ofInvestment Policy (SIP) for Fiscal Year 2000-01. (ORI800.0.27.16) The Finance Director presented the report. SUMMARY: Per recommendations from the Investment Advisory Committee and the Investment Oversight Committee, it is proposed that several changes be made to the City's and Redevelopment Agency's Statement of Investment Policy. The recommended changes include increasing our authorized investments in the Local Agency Investment Fund (LAIF) and revising the language relating to Money Market Funds to be consistent with the State of California Government Code. Additionally, as a result of having our policy reviewed and certified by the Municipal Treasurers Association of the United States and Canada, more definitive language was recommended for annually reviewing financial institutions and investing in Government sponsored investment pools. Mayor Coontz thanked the Finance Department and the committee. Councilman Alvarez indicated he was pleased with the chapter spelling out the prohibitive investment vehicles and practices. RESOLUTION NO. 9339 A Resolution of the City Council of the City of Orange approving and adopting a Statement of Investment Policy and repealing Resolution No. 9164. MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve Resolution No. 9339. 6.2 Investment Oversight Committee First Quarter Report for the Quarter Ending September 30, 2000. (ORI800.0.27.16) The City Treasurer summarized the activity of the Investment Oversight Committee. Mayor pro tern Spurgeon asked the City Treasurer to identify the members of this committee and the Investment Advisory Committee. The City Treasurer responded the members of the Investment Oversight Committee are: City Treasurer, City Manager, Finance Director. The Investment Advisory Committee members are: Jim Hanson, Hal Jackson and Charles Simons. Ex-officio members are City Treasurer and the Finance Director. Mayor Coontz commented they have done an excellent job and were appointed at a time when it was difficult to get people who had the qualifications to be on this committee. The Mayor suggested they be invited to the next Council meeting so they may be acknowledged for their participation. PAGE 9 CITY COUNCIL MINUTES October 10, 2000 6. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS (Continued) MOTION - Murphy SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and file report. 7. ADMINISTRATIVE REPORTS - None 8. REPORTS FROM CITY MANAGER - None 9. LEGAL AFFAIRS - None 10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 11. RECESS TO CLOSED SESSION The City Council recessed at 5:23 p.m. to a Closed Session for the following purposes: a. Public Employee Discipline/Dismissal/Release pursuant to Government Code Section 54957. 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 Mr. Luis Caballero, 487 S. Grand, spoke regarding the pending proposed second unit addition at 475 S. Grand Street. There are already density problems in that area and requested the Council re-zone portions of the southeast quadrant of the Old Towne Area to R-l; re-zone the 300 and 400 blocks of South Grand Street to R-l; and adopt a moratorium on second units in certain portions of the southeast quadrant of Old Towne until the density issues are resolved. (ZIS00.0) The City Manager reported this item has not gone through the Planning Commission yet and staff will review this matter and report back to Council. Councilman Slater also asked staff to see if there is a discrepancy between the zoning and the General Plan in this area. Councilman Alvarez reported he and Planning Commissioner Tita Smith recently met with this neighborhood to provide general information for the neighbors. PAGE 10 CITY COUNCIL MINUTES October 10, 2000 12 PUBLIC COMMENTS (Continued) Michelle Turner, 400-Block of North Cypress, submitted copies of a letter to the Council. She expressed concern about the gang activity and graffiti problems in her neighborhood, and suggested graffiti removal services be available on weekends. The Police Chief was instructed to work with Ms. Turner in resolving these issues. (C2S00.N.4) Mr. Nick Lall, 6231 E. Mabury, appreciated the Mayor's comments regarding Beverly Nestande, and suggested an appropriate way in which to honor her would be to name Rock Creek Park after her. 13. PUBLIC HEARINGS 13.1 GENERAL PLAN AMENDMENT 2-00, ZONE CHANGE AND PRE-ZONE CHANGE 1204, SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT 1278, THE IRVINE COMPANY - SANTIAGO HILLS II Time set for a public hearing on petition by The Irvine Company proposing to develop 1,746 dwelling units on 494 acres and to consider: · General Plan Amendment 2-00 to change the East Orange General Plan (EOGP) from Mixed Use, Employment, Low-Medium Density Residential, Medium Density Residential and Open Space to Low Density Residential, Low-Medium Density Residential, Medium Density Residential and Open Space. Also to change the Orange General Plan from Public Facility to Low-Medium Density Residential. · Modify various portions of the Circulation Element. · Modify portions of the text ofthe EOGP. · Zone Change and Pre-Zone Change 1204 to zone and pre-zone the entire site to PC (Planned Community) Zoning. The property is generally located east of Jamboree Road, west of the Eastern Transportation Corridor and south ofIrvine Regional Park (in addition, 25 acres of the 494 acres is located west of Jamboree Road and north of Chapman Avenue). NOTE: Supplemental EIR 1278 was prepared to supplement final program EIR 1278 for this project. STAFF PRESENTATION: Mr. Stan Soo Hoo, Community Planning Manager, presented a brief overview of the project. The project area consists of 494 acres, generally located south of Irvine Park, between the Eastern Transportation Corridor and Jamboree, with a plan to develop approximately 1746 housing units. In 1989 the City adopted the original East Orange General Plan (EOGP), which encompassed approximately 7,000 acres. The original theme in 1989 was to divide the total acreage into four PAGE 11 CITY COUNCIL MINUTES October 10,2000 13. PUBLIC HEARINGS (Continued) planning areas, (this project being Planning Area 1) with an urban center and mixed uses within each area. The current plan, however, eliminates the town centers and its mixed use concept, and instead proposes residential development in a manner similar to the existing Santiago Hills community, located immediately west of this location. The General Plan Amendment is necessary to accomplish this. Mayor Coontz pointed out this development proposal is on land owned by The Irvine Company which is a portion of the General Plan approved in 1989, which is a much larger acreage. There was speculation years ago that a proposal would be developed sooner, but the timing to start construction of the Eastern Transportation Corridor and the recession in the mid-90's have contributed to the delay. She also asked speakers to clarifY abbreviations as they speak. The Circulation Element requires an amendment because of the reduction in traffic volumes as a result of the reduction in building density from the original Plan. The text of the of the EOGP requires an amendment also due to uses no longer proposed for this location. A zone change is necessary to establish a PC (Planned Community) zone for the entire area. This zoning allows the applicant to utilize development standards similar to the existing Santiago Hills development rather than generic standards. A pre zone change is necessary as this property is mostly unincorporated area and requires annexation to the City. This pre-zoning is effective only upon annexation. At the Planning Commission hearing, Staff was directed to discuss affordable housing opportunities with the applicant. These discussions did occur, however, it was concluded that more time is needed to develop a specific program, and will be developed prior to annexation. Another issue raised at the Planning Commission was the effect of this development on the nearby existing retail centers. It was concluded that with this development, there is the potential that the existing vacancy factor in the two nearby centers would be reduced by 50%. This will provide increased revenue to the City based on an increase in retail sales. With regard to fiscal impacts, the original proposal included a commercial component in the 25 acre area next to Santiago Canyon College. This has subsequently been eliminated due to strong community sentiment, which results in a fiscal deficit of approximately $80,000 per year at project build out. To remedy this, staff has worked with the applicant to require them to pay the City $400,000. Each unit will be assessed a share of this $400,000 and collected at the time building permits are issued. In response to questions from Councilman Alvarez, Mr. Soo Hoo explained the agreement with the applicant is guaranteed for $400,000 over five years, even if the number of housing units changes, with no continuing payments after that. After five years, the project does suffer a PAGE 12 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) deficit. However, there is additional property to the east of this project that will eventually be annexed to the City, and it is the City's intent to pursue fiscal opportunities with that property in order to achieve an overall balance. Mayor Coontz asked for an explanation of the entire process. Mr. Soo Hoo explained that after Council action on this proposal, the 494 acres will need to be annexed to the City, at which time the zoning becomes effective. The development process then begins with tract maps submitted by the applicant for Planning Commission and City Council review. There will be a minimum of two public hearings for every tract map submitted. Kathleen Brady, Bonterra Consulting, Environmental Consultants, reported an environmental impact report (EIR) was previously certified in 1989 as part of the original East Orange General Plan. The Supplemental EIR focuses on changes in the environment and the project over the last 11 years and incorporates new information since that time. Government Code states that when a project has an EIR, it can be supplemented if there are either major changes to the project area, changes in circumstances or new information is available. Both the original and supplemental EIRs need to be considered. Both EIRs were circulated for review for 45 days and two workshops were held for community input. Key issues raised at the workshops include traffic impacts, fiscal impacts, noise, biological resources and water quality issues. Councilman Alvarez asked about the water runoff management plan and who will be responsible for monitoring development in relation to the wetlands. Ms. Brady explained the applicant will prepare an urban run off management plan. The applicant is also responsible for monitoring the program for five years as established by the Army Corps of Engineers. After five years, the responsibility may go to the Homeowner Associations. APPLICANT PRESENTATION: TAPE 1540 Mr. Dan Young, Applicant, The Irvine Company, stated the original East Orange General Plan was established to guide development in East Orange. This application is a step in a process that will require a great deal of public input and as the tract maps are prepared specific questions will be addressed in much more detail. He then gave a Power Point presentation, highlighting: the location map, history of the 1989 plan and revisions that have occurred, the public meeting and community input process, revisions since the application was submitted earlier this year, responses to community input such as reducing traffic impacts lowering densities, the 68 environmental mitigation measures, the mixture of residential uses from low to medium density, the circulation system, landscape plans, and their commitment to architectural diversity. He reported the project works within the constraints of the East Orange General Plan, which sets a ceiling for development, and the Natural Communities Conservation Plan (NCCP). The applicant has worked with environmental groups in identifYing preserve habitats and are committed to preserving wetlands. PAGE 13 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) He reported they have a commitment to education and are providing an elementary school in the area as well as a business plan for refurbishing existing middle and high schools. They also have a commitment to maintain quality of life by providing trails and parks in both the short term and long term. Councilman Alvarez asked about their proposal to provide $3 million in lieu of park land to be used for the park on Prospect. He asked about using that $3 million to purchase the commercial site next to Santiago Canyon College. Mr. Young stated that option was not discussed as it would not be financially feasible. It was pointed out the value ofthat commercial site could run as high as $15 million to $20 million. Councilman Slater asked about impacts to the intersections of Cannon and Santiago Canyon Road and at Chapman and Prospect, which are already heavily impacted, and requested information on timing and funding of improvements for these intersections. Mayor Coontz also asked for information on how these intersections relate to the 7-year CIP Plan. The Director of Public Works reported at the time the current CIP Plan was prepared and approved by Council, they had not yet submitted applications for the latest round of Measure M grants. Those applications were filed in June and they have received some preliminary information, but it is not definite until it goes to the OCT A Board. The City submitted a total of 12 projects for grants, the first priority being the realignment of Cannon Street which encompasses the intersection at Santiago Canyon Road. That project is estimated at a total cost of $2.4 million, with the grant application being $722,000. Construction funds are expected in FY 2005/06 under the grant program, and it is expected to have that project under construction in that time frame. The intersection at Chapman and Prospect was the third priority submitted. That project is estimated at approximately $2 million, with the grant application at $1.2 million. Construction funds are expected in FY 2003/04. The intersection at Chapman and Y orba, which is also impacted, has previously been funded through grants. Construction is expected in FY 2002/03. The Irvine Company is paying fees for these improvements, either through the Transportation System Improvement Program or a fair share contribution. The impact at these intersections from this project is a small portion of the total traffic volumes at these locations. Mayor Coontz asked about the completion of these improvements and how they will fit into development timing, as these improvements are necessary even though the increased traffic impacts are minimal in relation to the entire problem. PAGE 14 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) The Director of Public Works reported the construction at Santiago Canyon and Cannon is scheduled for completion in FY 2006/07, which was contemplated in the CIP for a project about half the size indicated here. However, the project was expanded to include entire intersection. For the intersection at Chapman and Prospect, the schedule is compatible with what is in the CIP. Councilman Alvarez asked about the traffic capacities along Chapman and Santiago Canyon Road and what will occur if these improvements are not made; and what volumes will be added with this development. The Director of Public Works reported the present volume on Chapman is at 25,000 cars per day at Crawford Canyon, dropping to 18,000 and 13,000 further east. Capacity for a 4-lane highway is approximately 25,000. Current volume on Santiago Canyon Road is 23,000 at Cannon dropping to 15,000 further east. Capacity is also approximately 25,000. TAPE 2850 Mr. Kendall Elmer, representing Austin Foust & Associates, Traffic Consultant, reported the development would increase traffic on Santiago Canyon Road by 3,000 cars per day over the existing 23,000 and on Chapman it would increase by 10,000 over the existing 25,000. (These figures were corrected later in the meeting to 2,000 cars on Santiago Canyon and 6,000 cars on Chapman Avenue). He also noted it was his understanding that capacity for these types of 4- lane highways was approximately 37,000. MAYOR COONTZ OPENED THE PUBLIC HEARING Those speaking in favor: Barbara DeBoom, President CEO, Orange Chamber of Commerce Anthony Torres, 218 Sweetwater, Chairman East Orange Neighborhood Committee Alan Burns, 8203 E. Hillside Cecilia Bustamonte, 1100 W. Steward Dr. Marilyn Ganahl, 2035 Lewis Dr. Kim Nichols, 317 Mominglory Way Shirley Grindle, 5021 E. Glen Arran Sister Kathleen Maloney, St. Joseph Health System 500 S. Main St. Jaquie Woolsey, 7930 E. Elderwood Ave. Bob Bennyhoff, 10642 Morada Dr. The following comments were expressed: - Members of the East Orange Neighborhood Committee (EONC) have met with The Irvine Company numerous times and have been very involved in reviewing and critiquing the EIR. - They have helped develop a comprehensive set of mitigation measures. - This is a realistic course of action and the best possible plan for this area. - The project will be monitored throughout all phases. PAGE 15 -- -- -'._~_.'------'--~--_,_,_--- CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) - The Irvine Company has addressed School District issues in providing for a new school and the refurbishing of existing schools. - Details will be addressed and monitored as tract maps are developed. - Shirley Grindle requested the City Council direct staff to work with The Irvine Company, the County, OCTA and the community to relax standards so that Santiago Canyon Road can be pulled back from impacting Irvine Park, without impacting safety. She also recognized the need to improve already impacted intersections at Chapman and Prospect and at Cannon and Santiago Canyon Road. - Representatives from St. Joseph Health Systems asked that affordable housing opportunities be provided with this project. Suggested that five acres or 150 units be dedicated for affordable housing as a condition of approval. - Mr. Bennyhoff suggested developing a plan for the entire 7,000 acres; and also recognized that water issues still need to be addressed. The Chamber of Commerce was in support of new housing which is needed for increasing employment and suggests a commercial center in the next Phase. The Council recessed at 9:06 p.m. and reconvened at 9:20 p.m. Speaking in a neutral position: TAPE 4300 Mara Brandman, address on file, addressed the need for multi-purpose recreation trails and linkages throughout the entire area; and supported the suggestion to develop a plan for the entire 7,000 acres. Those speaking in opposition: David Newton, 9823 Brier Lane, Cowan Heights, Santa Ana, asked that noise concerns be addressed by the noise consultant. Red Bauer, 11062 Meads Ave., Orange Park Acres, asked about the trail undercrossing to Irvine Park, which is necessary as part of the overall trails network. It is a widely used trail system, and Council needs to consider the unsafe aspect of trying to cross the streets. Councilman Slater asked Mr. Bauer if he was referring to the proposed crossing near the Holy Sepulcher Cemetery. Mr. Bauer indicated the one near the cemetery is necessary also, but he is referring to the undercrossing that was taken out during the construction of the toll road which was supposed to continue from Canyon View into the Park. Mayor Coontz pointed out there is information on a web site inferring that she took the crossing out as a member of the Eastern Transportation Corridor. Extensive research was done on this subject and it was a staff activity that never came to the Board. There was supposedly a quote on the website which was not the style of how she talks. This is a gross error and typical of what happens during election time. The trail is gone, but mostly because of the issue of Canyon View being removed in The Irvine Company plan before us. PAGE 16 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) David Hayward, 9761 Rangeview Dr., Cowan Heights, Santa Ana Kathy Quizling, 9761 Rangeview Dr., Cowan Heights, Santa Ana Sparky McGraw, 7329 E. Morninglory Tom Anderson, 1392 N. Stallion St. Nick Lall, 6231 E. Mabury Niles Koines, 18022 Western PI., Tustin Christopher Koontz, address on file, expressed concern that the replacement oak trees are not comparable in size to those being removed. This does not represent a reasonable range of a variety of size of oak trees. Janet Koepke, 20162 Santiago Rd. Marty Poort, 11021 Meads Ave. Sybil Leffler, 10693 S. Orange Park Blvd., speaking on behalf of Oak Trees Alex Mintzer, 465 N. Christine St. Charles Leffler, 10693 S. Orange Park Blvd, Orange Park Acres Laura Thomas, 7211 Clydesdale, Orange Park Acres Julie Jones Ufkes, 20121 E. Clark St. Dave Belardes, San Juan Capistrano Craig Attanasio, 5744 E. Creekside #47 Sandy Rickard, 4615 E. Walnut (was not present - July Ufkes read one sentence in the letter) Erich Figley, 1822 Sirrey Dr. Cowan Heights Juan Pablo Serrano Nieblas, Ellen Toth, 20091 E. Clark, submitted a petition requesting postponement Richard Siebert, 1388 N. Kennymead Mark Sanford, address on file Sherri Meddick, Silverado - submitted a letter dated October 8th "Preface and Request for 30-day Continuance" Theresa Sears, 7733 Santiago Anita Bennyhoff, 10642 Morada Dr. Doug LeMieux, 1387 Kennymead, Charles McNees, 11211 Orange Park Blvd. Carolyn Noble Petition dated October 5,2000, containing approximately 150 signatures, was submitted. Petition dated October 2000, containing approximately 49 signatures, was submitted. The following comments were expressed: - This project will have significant County wide impacts with irrevocable wildlife damage. This is one of the few rural areas left in Orange County. - This is not a small part of the process, because if approved, density is cast in concrete. - The OPA Board has not been included in the East Orange Neighborhood Committee (EONC) meetings with The Irvine Company, and would like a direct meeting with the Company. - The EONC does not represent the entire community. PAGE 17 CITY COUNCIL MINUTES October 10,2000 13. PUBLIC HEARINGS (Continued) - Objections were raised to taking park money in lieu of park land, as land can never be recovered. - Stop comparing this project with Santiago Hills I project. - More active parks are needed in East Orange. - City services will be impacted, including Police and Fire and also new schools will be needed. - New development shouldn't begin until after traffic improvements at intersections are complete. The original 1989 Plan should not be used as a base line. - Traffic and safety impacts to residents along Santiago Canyon Road. Comments were made that the City is "settling" for the "best deal" they can. - Environmental concerns include: Oak trees will be destroyed and replacement trees are not comparable to original ones. Wetlands are being impacted. Hydrology and watersheds issues have not been addressed. Archeological resources need to be saved. Traffic was not addressed throughout the canyons. Water run off management plan should be completed. - Suggestions were made to continue this matter until traffic and environmental concerns are addressed and a water run off management plan is provided. Handy Creek already has problems with water shed - request postponement until an independent firm can do a water run off management plan The following correspondence was received prior to the Council meeting: . Richard Statuto, St. Joseph Health System - requesting specific options for affordable housing . John H. F. Ufkes, 20121 E. Clark, Orange - pointing out deficiencies of the SEIR . Kathy Eckstaedt . (e mail) - in opposition . Julia A. Jones-Ufkes, 20121 E. Clark, Orange . Christopher Koontz (dated October 4, 2000),10242 Lolita, Orange . Christopher Koontz (dated October 8, 2000), 10242 Lolita, Orange . Anthony Torres, East Orange Neighborhood Committee, 218 N. Sweetwater Lane, Orange . Ken Osborne, 7451 Mt. Vernon Street, Riverside . Charles Leffler, 10693 S. Orange Park Boulevard . Sybil Leffler, 10693 S. Orange Park Boulevard . Eleanor V. Brewer, St. Joseph Health System, requesting an opportunity for affordable housing in the project . Jamie Goodding, 11041 Meads Avenue . Scott Mather, Orange Cares, 480 S. Batavia, requesting inclusion of affordable housing . Laura Simonek, Metropolitan Water District of Southern California, regarding the Allen McColloch Pipeline . Friends of County Ridges, Parks and Wildlife . Wanda Smith, California Regional Water Quality Control Board . Laurie Marine, 2335 Oakmont, Santa Ana . D. Hood (e-mail) . 57 postcards PAGE 18 CITY COUNCIL MINUTES October 10,2000 13. PUBLIC HEARINGS (Continued) NOTE: Councilman Alvarez left the podium at 10:50 p.m. and returned at 11:00 p.m. MAYOR COONTZ CLOSED THE PUBLIC HEARING RECESS - The Council recessed at 11:06 p.m. and recouvened at 11:12 p.m. RESPONSES TO ENVIRONMENTAL COMMENTS AND CONCERNS TAPE #2 - 1330 NOISE IMP ACTS Matt Jones, Manager of Environmental Services at Mestre Greve Associates, addressed noise impacts. Subsequent issues from the initial noise analysis have revolved around impacts on Cowan Heights and Peters Canyon Reservoir and the elimination of the hill ridgelines. A letter dated July 24th addressed initial concerns and additional concerns of noise impacting wildlife in the parks were addressed in a letter dated August 25th. The criteria used for determining significant noise increase was, I) significant noise increase of 3 decibels which is the level noticeable by most people, and 2) the future results of noise increase being more than the City standard, which is a 65 community noise equivalent level (CNEL) standard. This is a 24 hour average noise level. In the initial EIR they looked at how the change in traffic will impact noise levels. It was found not to be a significant impact, in that it was less than a decibel change. They looked at the increase in noise in Cowan Heights as a result in the removal of the ridgelines, which act as a noise barrier from the Eastern Transportation Corridor (ETC) to those areas, but only reduces it for a certain segment. The whole length of the ETC contributes to the noise level. They did an analysis and found in some instances the noise level would increase up to 5 decibels but the resulting noise level was well below the 65 CNEL. They concluded there was not a significant impact. For all noise modeling on the ETC, they have used 65 mph speed limit and a 55 mph on Jamboree. In looking at Peters Canyon Reservoir and the impact on wildlife, they found levels from the ETC would increase by only approximately 3 to 6 decibels, but will be no significant impact to wildlife. There is no good standard on what is a significant noise impact to wildlife, but the argument is usually that it interferes with bird calls. There was an assertion that noise levels from vehicles have changed in recent years - but they have seen no indication of this. There was also an assertion that the General Plan calls for a 40 decibel level for a quiet and rural area. However, they found that both the County and City General Plans have set 65 CNEL as acceptable criteria. They were asked if they could possibly use Noise Ordinance criteria, which is used to control noise being generated on private property from impacting adjacent property. However, the State precludes from controlling noise on a roadway. Noise levels can be controlled for planning purposes for how much noise is acceptable on a residential area, and that's the 65 CNEL level. PAGE 19 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) HYDROLOGY IMPACTS Mark Anderson, RBF Consulting, addressed hydrology impacts, specifically for Handy Creek flooding and Handy Creek Wash. When the Santiago Hills I development was proposed, there was a Master Plan of Drainage developed for that project and they recognized that Handy Creek had limited capacity, especially through Orange Park Acres. As a result, there was an extensive study done to deal with the tension of storm water runoff. Within Phase I, there is a park site, which is actually a detention facility. The function of that is to take the peak off of any storm and release it at a controlled rate so that rate matches the capacity of the downstream facilities. They also recognized they were the receiver of water from upstream which is basically the area of East Orange. They recognized that area would be developed. The EOGP had not been developed, but there were assumptions regarding how that land might ultimately utilized. Those assumptions were fairly accurate to the current proposal. In making those assumptions, they recognized that water would create a problem for them, so they incorporated the Peters Canyon Reservoir as a detention facility as well. In looking at the project there are two major water sheds from the future Santiago Canyon Road, that area to the north generally drains through Irvine Park into Santiago Creek. The area south of the future Santiago Canyon Road generally drains south to the Peters Canyon Reservoir. The difference between this project and Phase I, is that since 1992 there has only been a spill from Peters Canyon Reservoir - a controlled release - to Phase I three times. So the impact from the East Orange area has only contributed to Phase I three times in that time period. The rest of it has actually gone into the reservoir and been contained. However the water in Phase I functions independently because it has it's own detention facility. They work in cooperation with each other, but there are issues related to OP A that could be isolated to Phase I and really not be a part of the upper General Plan area. Another point is the discharge to Peters Canyon Wash. They have been in contact with the dam operator for Peters Canyon Reservoir. There is a dam at Peters Canyon Reservoir with an outlet controlled by a valve. It is required by dam safety that in the event there is any failure that within a set period of time the dam could be lowered to 50% of its capacity. That's why that outlet exists. The operating instructions to the operator used to be that they do not release water from this reservoir, until several years later when the County received complaints of mosquitoes in the area. Vector Control asked dam operators to lower the water level in the Reservoir to eliminate the breeding ground for mosquitoes. They explored alternatives other than releasing the water, but decided the best means for dealing with the mosquito problem is lowering the reservoir. They have done this four times since 1992 for mosquito abatement purposes. There is no way for that water to reach Peters Canyon Wash unless someone physically releases the water to go that direction. Also, since 1992 the Reservoir is continuing to decline in elevation in storage. There is not adequate runoff to maintain the water level in the Reservoir. Without major supplemental water, that Reservoir will start to dry out - perhaps completely. It needs a supplemental water source, PAGE 20 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) or with this development it will increase the volume of water runoff that will reach the lake and actually provide more water to that Reservoir. If water is released, it is by choice _ choice by the County. They do so now for mosquito purposes. Councilman Alvarez asked about the storm runoff water. What will its impact be to the wetlands east of Jamboree as well as to Peters Canyon Reservoir. Because of a retention basin, is it supposed to be capturing material and essentially screening out water before it gets to those areas? Mr. Anderson first stated there are many competing interests and the purpose of the runoff management plan is to deal with the various interests. In the two drainage areas described, Irvine Park and Peters Canyon Reservoir, they normally would not divert water but let it go its normal direction. They might detain it but not redirect it. However, they have been encouraged by the County to do a diversion. The Irvine Park's facilities are undersized and there is a concern for the habitat in Peters Canyon Reservoir and the intent of the plan is to take the runoff from their project and also from easterly of the Corridor and release it at a controlled rate and have the low flows diverted into the wetland areas. That helps replenish and provide water to the wetlands and the wetlands also provide a water quality function in that they help clean out the low flow water entering into those wetlands. TRAFFIC CONCERNS Mr. Kendall Elmer, Austin Foust & Associates, corrected an earlier statement about traffic volumes. This project would increase traffic by 2,000 cars on Santiago Canyon Road and 6,000 cars on Chapman Avenue. With regard to the impacts on Santiago Canyon Road east of the project, first, it is a requirement that the applicant pay fees pursuant to the City of Orange TSIP Program, the Foothill Eastern Major Thoroughfare and Bridge Fee Program and the Santiago Canyon Road District. With regard to the general impact assessment on Santiago Canyon, particularly the ingress and egress locations, it was suggested that the study area be expanded to include those intersections. The reason the study area was not extended was that the findings of the traffic impact analysis essentially did not identifY significant impacts east of the site. The distribution pattern of traffic that is projected to and from the site estimates that only about 2% of the project trips will travel easterly of the site. That equates to approximately 20 to 30 trips during peak hours. That is not classified as a significant impact according to either City or County standards. With regard to vehicle capacities on Santiago Canyon Road, the most recent study assumed a capacity of 18,750. Santiago Canyon Road was not classified as a local commuter street, as it does not have much side traffic, and has significantly higher travel speeds. Because of this, for calculations, they used half the capacity normally used for a four lane primary arterial. In fact the County is currently updating the Santiago Canyon Road Fee Program to assess what types of improvements can be constructed and also reassessing the current operating capacity. PAGE 21 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) Another issue raised was confusion over the hours used for study purposes in the traffic analysis. For each intersection studied they took traffic counts for two-hour periods to capture the one highest hour, and at each location, wherever the highest hour occurred for those two-hour counts, that was considered to be the peak hour. They did not stick with a set peak hour. Stan Soo Hoo spoke to an issue raised about the City's relationship with Bonterra Consulting, the environmental consultants. There was an agreement executed by the City, Bonterra and The Irvine Company outlining the responsibilities of the consultant, to be responsible exclusively to the City; and Mr. Soo Hoo personally oversaw the work of the consultant. Councilman Alvarez asked why so many mitigation measures needed to be adopted if the project was done correctly in the first place. Mr. Soo Hoo stated that some of the measures were strengthened, reworded or made more acceptable to the community and doesn't necessarily mean the program was deficient. They are now more customized to meet the community needs. ENVIRONMENTAL ISSUES Kathleen Brady, Bonterra Consulting, stated that there were originally 50 mitigation measures and that has been increased to 68, many of which deal with biological resources. Also, the Natural Communities Conservation Program (NCCP) requirements were not originally included as mitigation measures since they were already a requirement, but the County required that they be included as measures. She also clarified the Santiago Canyon Road Fee Program. The mitigation measure in the original EIR indicated the method of the project's participation in the Fee Program was to be determined prior to or concurrent with the approval of the first zone change application. However, at that time, the Road Fee Program had not been developed. The supplemental EIR does incorporate that measure by requiring that the applicant participate in the Fee Program which has now been developed. With regard to cultural resources, the mitigation measure does require a testing program before grading and also grading observation, which was referred to as the need to have monitors on site. Regarding trail crossings, all trails will be designed to full standard. There was also the question of having them underneath Chapman Avenue. Because there is such a substantial elevation difference between the north and south sides of the roadway, this would create an extremely long tunnel and there would also be extensive impact to the wetlands in the area. Councilman Alvarez asked how the wetlands will be protected during the grading process. Ms. Brady eXplained the area is marked off with fencing so as not to infringe onto other areas; and monitors will be on site at all times. There are also mitigation measures for controlling dust as well as the use of water trucks, and they meet all AQMD requirements. Monitoring can be done in a variety of ways, and the Mitigation Monitoring Program requires the City Engineer to make PAGE 22 CITY COUNCIL MINUTES October 10,2000 13. PUBLIC HEARINGS (Continued) sure it is implemented. It is usually included in the construction specifications so they are contractually responsible for implementing it. APPLICANT'S RESPONSE TAPE 2600 Mr. Dan Young asked to clear up a misunderstanding, explaining that he is not aware of any comment made by The Irvine Company that a hydrology mistake was made in Santiago Hills Phase I. In response to citizen requests for a continuance, he suggested that by moving forward with the approval process, they can start to address the issues raised at the meeting. Once this process is approved for example, they will do a detailed hydrology study based upon an approved zoning plan and EIR that has the mitigation measures that tells them how to go about doing that plan. The applicant will return with information about water quality, water shed, the run off management plan, the impact on the habitat, and how to pull all that together. This information has been asked for by the County and imposed on them by the Planning Commission, but the time to do this is at the tract map phase when they have the specifics and engineering. This will address many of the concerns made. On the issue of the trails, they will continue to work with the Trails Committee and the community on an overall trails plan, as they already have a working relationship with these groups. They will work with the City and community in developing an update of the Master Plan of Trails for their portion of the property. They will be proactive in working through the remainder of the 7,000 acres and have already moved this project through the process with any and all groups that were present. There were public hearing processes that everybody was invited to and they will continue to do this. The issues raised will be addressed prior to construction and will be a matter of public hearing and additional environmental review. If allowed to move forward they can get the answers to the community's questions. They will work with the City on creative and innovative ways to extend Santiago Canyon Road with as little impact as possible, and on other traffic and intersection improvements. Councilman Slater asked about the possibility of Santiago Canyon College purchasing the 25 acres adjacent to it; and asked for some history on this property. Mr. Young stated they met with the College and asked them if they wanted to purchase that property. The College responded they do not have any funding opportunities either in the short or long term to do so. They would like to have the property but are not in a position to purchase it. The Irvine Company asked the College if their long term plans are adequate to meet the growth of this area and the College assured them they can; and the College has stated for the record they do not object to this proposed re-zoning. The Irvine Company has had option agreements for nearly 20 years with the College, but the College has never exercised any of the options. The Irvine Company has also assisted the College in reconfiguring their Master Plan. Mayor Coontz asked Mr. Young to explain the process involved, what will happen in the future and how issues will be addressed. PAGE 23 CITY COUNCIL MINUTES October 10,2000 13. PUBLIC HEARINGS (Continued) Mr. Young explained if they receive an approval tonight for the General Plan Amendment and zone change, they will assemble a team that will include engineers, planners, architects, experts, etc. who will work for approximately six months to develop tentative tract maps showing lot locations, street locations, how they will interface with wetlands, cultural resources and other questions raised. This will all be laid out as they develop the tentative tract maps. They will also do a water run off management plan for the whole area. As part of the run off management plan, and outlined in the mitigation measure, they are required to survey sensitive habitat areas as they develop ideas on how to handle urban water run off and storm water in a comprehensive hydrology plan. They will also look at the Santiago Canyon Road extension. Also, during this time, they will work with all community groups and exchange ideas for design guidelines, architectural ideas, etc. Mayor Coontz asked how many acres are included in this vision. Mr. Young stated the tentative tract map phase focuses on the current Santiago Hills application. However, once it is approved, they will immediately begin work on the master planning process and will look at the property across the Corridor including the entire 7,000 acres. Mayor Coontz asked if the City's costs and needs have been determined to address the City's responsibilities; and who will manage the City responsibilities overall. It is extremely important there be teamwork, with oversight, for all the individuals involved with these responsibilities. The City Manger stated they have not assessed the entire costs and needs. The City will use outside consultants to actually review this work, as the Public Works Department is already prepared for specific issues regarding grading consultants and other environmental consultants. If the City's costs are above and beyond normal costs, they will be passed on to the applicant. Management of the City's responsibilities will be staffed accordingly. Councilman Slater asked for an explanation of the City's decision to accept the park fees in lieu of park land, when there is already a park shortage in the City, and how it relates to the proposed park on Prospect Street. The City Manager explained when the applicant's proposal was reviewed with areas identified as parks, the City looked at the usability, the future and the immediate needs. Even with land, money is still needed to develop the land. In this particular case, the City is attempting to build a regional park facility in the area of Prospect, one that can be developed immediately because of the shortage of parks. However, the City does not have the money to develop this project without stretching it out over several years. In consideration of where The Irvine Company will be taking their planning process, should this phase be approved, there have been discussions of a much larger facility, at least 35 acres, on the east side of the Corridor to help absorb the need in that area. But in order to meet the immediate financial need to get the Prospect Park developed at this time, the City has negotiated an in-lieu fee to be paid up front. PAGE 24 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) Councilman Alvarez agreed there is an immediate need for a sports park and the City should balance that need against the in-lieu fees; and asked how the City will ensure those fees are paid. The City Attorney explained there will be language included in any annexation agreement or development agreement to ensure a sports park in future phases. Mr. Dan Young explained that as part of this entire process, the City has to agree to annex this property to the City, and a pre-annexation agreement will secure the fees. Mayor pro tern Spurgeon wanted to ensure this money would not go into the General Fund, as has happened in the past. The City Manager explained that in the past this type of money was used for small park rehab projects in lieu of General Funds, but now there is a policy to target these funds for specific projects. Mr. Young reported there is a mitigation measure which states that prior to the approval of the first tentative tract map for Santiago Hills, The Irvine Company shall develop a program for providing park land that would meet the City's need for active sports facilities. The City Manager explained development of the Prospect Park was discussed as part of the last budget process and is included in the Capital Improvement Budget. Mayor Coontz asked about trails being dedicated to the County, the Master Plan of Trails, and what cooperation will be provided by The Irvine Company for the review of the Master Plan. Also, can the trails come under the same scrutiny, evaluation and determination of cost responsibility. She noted the current policy eliminates any financial responsibility of the City. However, this policy was developed during the recession and at that time the City could not get involved in any issues except the most basic ones. We should not go forward with the trails project indicating we will deny financial participation because that has not been decided yet. We need to have assurance from The Irvine Company that their consultant will work with the City's consultant on this issue. The City Manger indicated in 1993 the policy of the City Council was that they supported the trail system but would not participate financially, but with the change in the economy, this issue will be brought back to the Council. The City has not had a change in policy, but in addressing this issue again, it can only be more generous financially at this point. Mr. Dan Young indicated, for the record, they will participate with the City on the Master Plan of Trails. Councilman Murphy asked about the improvements to intersections that are already substandard prior to any development which will further degrade these intersections. From the schedule that PAGE 25 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) has been discussed, it sounds like the intersections will not be improved any time close to when the houses will be built, and asked if these improvements can be moved ahead? The City Manger pointed out the City is not prepared financially to move the improvements forward. The Director of Public Works reported the City does not have the flexibility to move the projects forward, as they are heavily committed to grant funds, and the current schedule is the most optimistic there is. Mayor Coontz reported when she was a Planning Commissioner, during the development of Santiago Hills Phase I, she had been invited to spend a night at a residence along Chapman Avenue to hear, first hand, the traffic noise. In addition to the normal passenger car noise, what was not anticipated was the noise from semi trucks and the lights shining into homes. This was a problem all along Chapman, and at that time, The Irvine Company was required to provide double-paned windows, air conditioning and buffers for certain homes. This type of impact needs to be addressed during the tract map phase. Other issues learned from Phase I, and which need to be addressed, include architectural style issues such as the design of windows which can be difficult to treat, and length of driveways. She asked for a more detailed explanation of the design guidelines. Mr. Dan Young explained that once the tract map phase begins, they will know where the lots will be located and if additional mitigation measures are necessary. They have taken ideas and issues from Phase I and made changes for Phase II. Some of these changes include traditional driveway lengths, landscaped areas adjacent to the curbs and issues with corner lots and garages. The City Attorney asked to clear up a few issues, pointing out that Mr. Soo Hoo was hired full time to work solely on this project. He is a former Planning Manager and former Assistant City Attorney with the City of Orange, and there have been numerous ongoing discussions and significant review of this proposal by both the environmental consultant and Mr. Soo Hoo. Also, with regard to deferring mitigation measures, it is not unusual for mitigation measures to be in broad terms at this phase in the planning process, especially with a General Plan Amendment or Zone Change. Sometimes there is no real practical method of devising a mitigation measure until there is a specific project. For example, until there is a site specific plan, a water run off management plan cannot be devised. The key is to ensure there are feasible mitigation measure that can be implemented and in force. He also asked for a more detailed explanation, for the record, of why a Supplemental EIR was developed as opposed to a new EIR or subsequent EIR. Ms. Kathleen Brady indicated Section 21166 of the Public Resources Code states that when a project already has an EIR prepared for it, that no subsequent or supplement EIR shall be prepared unless one of the following events occurs: I) substantial changes are proposed for the project that require major revisions to the EIR; 2) substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions in the EIR; or 3) new information which has not been known and could not have been known becomes PAGE 26 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) available. Also, the CEQA guidelines, Section 15163, explains that even if you have one of these three circumstances, that if you can supplement the EIR - basically take the information that is necessary to make the EIR adequate - that that is an acceptable approach, by just having the additions and changes and do a supplementation that the EIR is adequate. That allows building on the previous documentation. In this case, final EIR 1278 looked at the East Orange General Plan area at a programmatic level, looked at a wide range of alternatives, looked at cumulative impacts on a large scale, and it allows this project to be more focused on supplementing the information that is necessary for the Phase II area. Mr. DeBerry explained the initial EIR addressed and reviewed a project which had significantly more and greater environmental impacts than what is proposed. Therefore, the City, along with the environmental consultant, looked at the new project and determined that the impacts were either less or the same than the impacts that were reviewed in the EIR back in 1988. That is why the supplement was chosen. Ms. Brady indicated when they looked at the changes, the elimination of 1.5 million square feet of mixed use, providing more open space. Basically, the type and intensity of the impacts were going to be less because the project proposed less development. So rather than needing to do a new EIR, they were able to document what the changes and impacts would be. COUNCIL COMMENTS TAPE 4360 Mayor pro tern Spurgeon stated although in a perfect world it would be nice to see things stay the same, that is not reality. The City needs to learn from past mistakes and do a better job than what was done in the past. He appreciated the efforts of the community, in particular from Shirley Grindle and Bob Bennyhoff who have both been involved in East Orange land planning for a long time. They both know land planning and understand the East Orange area and are aware of realities. While not representing all of East Orange, they have tried to bridge a gap and force some of the changes that have to be made. We need to move to the next level where some of these specific issues will be addressed, and move ahead with a vision for the entire area and not just for Santiago Hills II. Councilman Slater stated in all the years in this City he has never seen a project scrutinized the way this project has. This project requires a sign-offfrom the California Department ofFish and Game and the Nature Reserve of Orange County, and some of the 68 mitigation measures include plant surveys and inventories of various kinds of birds. These things will take place before any bull dozers set foot on that property. He has always voted independently and always on a project by project basis, and to clear up a statement made earlier, reiterated that he has not received any funds from the Irvine Company. The Irvine Company has provided an opportunity for all members of the community to meet with them and he thanked the members of the community who have spent a great deal of time meeting and negotiating with The Irvine Company. He particularly noted the efforts of Shirley Grindle and Marilyn Ganahl in preserving open space, and how they have reviewed and scrutinized every detail of this project. Every development project should have the same amount of review, including parks, schools and traffic PAGE 27 -~----------_. CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) mitigations. There are many win-win situations with this development. In particular, it was noted the $17.8 million that is being set aside for schools, which the City desperately needs, plus the efforts to possibly obtain another $20 million for schools. He agreed with the removal of the commercial site, because as development occurs east of the Corridor, a viable commercial center and quality sports park can be developed at that point. He agreed the City needs to continue to work with The Irvine Company and look at the remaining 6,500 acres and ensure that future development is appropriate for the entire community. For the record, Councilman Slater wanted to make sure the City requests their desire to preserve the oak grove at the entrance to Irvine Park and instruct staff to seek solutions in cooperation with the County and The Irvine Company to avoid, as much as possible, the impact to this row of oak trees, including the elimination of the sidewalk on the north side and possibly eliminating the median in the middle of the road so there is not too much grading and also consider a split level road. That road should be, if at all possible, aligned slightly to the south so there is as little impact as possible to Irvine Park and the ridgeline to the south side of it. Councilman Alvarez agreed the City will be looking at this project very closely from now on. At this level, the information is more general but as the project moves forward, it will get more detailed and more specific. There will be more opportunities to mold this project into something beneficial for everyone. He appreciated the comments from the community as they are important and can be used as guidelines for the Council as the project progresses. He was particularly concerned about policing the mitigations. This is a large scale project and there needs to be adequate staff to monitor the mitigation measures. Councilman Murphy recognized the efforts of the communities and neighborhood committees in creating a project, in cooperation with The Irvine Company, which is a good start on a much larger project to the east. While it is a good project currently, there is still room to make it a great project. He expressed concern about the circulation issues, specifically improving intersections prior to the Santiago Hills II project or the connection of Serrano Avenue; and it was his understanding that the Serrano connection could be as early as next year or the year after. There are questions from a financial standpoint, not only from the funds that are in deficit on this project but also any ability to connect this project and the next project that might come forward. There was a time span of about 12 years between Phase I and Phase II, and although he doesn't expect that to repeat, the City can not afford to wait another 12 years for the promises of projects such as the sports park. He would like to see an active sports park included in this phase or tied to this phase so that it can support the area being developed. Councilman Murphy was especially troubled by a citizen's comment made earlier that, "we got the best deal given the constraints of an election calendar". He was not comfortable voting on a project that anybody infers is tied to the upcoming election. Therefore, he recommended they continue this project to get answers to some of the questions, as he did not see a rush to approve it now. He would like to support it too; and he looks forward to growth - but responsible growth. He wants to make sure anything that comes into the City contributes and doesn't take away from the resources that are already here. He asked for more answers to questions before he PAGE 28 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) could move forward. He would like to see a continuance suggested for no less than 45 days in order to ensure that some of these additional questions get answered. Mayor Coontz stated it shouldn't matter if it is an election year or not, and the Council always has to answer to the community, no matter when it is. The first General Plan is being looked at as not being adequate, which can always be done in hindsight, but there was a great deal of work done on the first Plan. During the Phase I discussions, she tried to get the School District involved, which wasn't happening; so she helped develop the joint use school which has turned out to be very successful. She further stated that, some of the issues important in developing the first General Plan were economic issues, circulation, police and fire service, design guidelines, architectural styles, environmental issues and the involvement of the community. When it was decided to necessitate the economic policy, because it was realized that residential doesn't pay for itself, that was for the entire acreage, not just for one part of it. We are focusing on one part of it, and she would like to have the confidence that in the balance of the original 7,000 acres, they can address that. She pointed out they have never before requested a developer to provide the City with an economic benefit. There needs to be a focus on the balance of the development with the economic policy that was originally established. Other issues unresolved in the original plan were trails and Irvine Lake. The ownership of the Lake involves The Irvine Company and two other agencies; and anything dealing with water is extremely complicated. The Lake has a lot of potential, as outlined in the original General Plan. Mayor Coontz expressed appreciation to all the citizens in attendance and their thoughtful comments. This initial phase has taken a great deal of time and energy and a great deal of time and energy will also be devoted to the balance of the project. The City is more sensitive today about issues such as traffic, the environment and trails, which are important aspects to this community's lifestyle. Councilman Alvarez stated he had a particular concern about the density and any resultant economic shortfall. He also asked Councilman Murphy if there was any specific question he had that might be addressed by staff. Councilman Murphy stated there were not only issues to be addressed by staff, but the issue that community groups would like additional opportunities to meet with The Irvine Company, especially related to the trail plan. There is also the question on circulation improvements, as there are already problems and this development is going to add to those. The project is close, but some of the issues raised at the hearing need to be addressed a little more fully before going forward, and he doesn't want to rush the project. Mr. Stan Hoffman, fiscal consultant, addressed the question raised by Councilman Alvarez regarding density and its affect on the fiscal balance. A fiscal computerized model was developed and essentially if you start to lower the density and move toward more single family PAGE 29 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) homes, the values are higher and the balance is improved. However, the property tax is a small share of the revenues relative to the other factors. It does contribute and move in a positive direction, but the value would have to go higher. If large lots with high-valued houses were built, you could essentially drive it to a positive, but you'd have to raise the value of the house more than what would be necessary in this project. It can be improved, however, with more single family, which has been proposed. It wouldn't be a positive unless it went to a much more radically different density. Councilman Alvarez asked at what point it breaks even. How much more single family would be necessary for the City not to have to pay? Mr. Hoffman stated they only ran the model showing the result of not having residential on the property that was initially proposed for commercial. That alone did not make it break even. There are relatively small changes in the figures due to property taxes, because the City only receives a small percentage, approximately 17%, of property taxes. Councilman Slater again expressed his appreciation for the input from the community, and stated the Council should not consider the election with any decision. He stated he is usually accused of being anti-growth, whereas he is actually for balanced growth, which he thinks this development is. He did not see any reason to continue this any further as it has already been scrutinized. Mayor pro tem Spurgeon did not want to continue this, as he did not believe anything could happen in another month that would make any significant changes. There are numerous safeguards in this proposal and they need to move forward to the next level. Mayor Coontz requested that elements of the EIR be taken out and put together so they are easier to understand, as it is difficult to go back and forth, looking at the complaints, the responses and the letters. With the volume of information in the EIR, this is important, and in the long run, would be helpful for the project. The minutes are in a traditional form, and this way it would be more convenient to see if The Irvine Company is meeting what they put on the record, and what the staff needs to do. She requested this be a part of a motion. MOTION - Murphy Moved to continue this item to get answers to some of these questions that have been raised. MOTION DIED FOR LACK OF SECOND MOTION - Spurgeon SECOND - Slater AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Murphy PAGE 30 CITY COUNCIL MINUTES October 10, 2000 13. PUBLIC HEARINGS (Continued) Moved to certify Supplemental Environmental Impact Report 1278 with the findings listed in Planning Commission Resolution No. PC-57-00. MOTION - Spurgeon SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Murphy Moved to approve General Plan Amendment No. 2-00 as outlined in Planning Commission Resolution No. PC-58-00, and to include the following additional specifications: 1. The applicant will coordinate with the City in the City's updating of the Master Plan of Trails. 2. The City indicates its desire to preserve the grove of Oak trees along the alignment of Santiago Canyon Road, near the entrance to Irvine Park and staff is instructed to work with the County and The Irvine Company to seek solutions to avoid, as much as possible, disturbance to these trees. Possible design measures may include: eliminating the sidewalk on the north side of the arterial, eliminating the center median (to reduce the amount of grading), or designing a split level road. Also, the road should be aligned slightly to the south in order to minimize visual impact to Irvine Park and minimize disturbance to the existing ridgeline. These measures are to be investigated with the understanding that traffic safety must not be compromised. MOTION - Spurgeon SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Murphy Moved to approve Zone Change and Pre-Zone Change 1204 as outlined in Planning Commission Resolution No. PC-59-00, including all issues that come under the zone change agreed to including design guidelines. NOTE: Councilman Murphy abstained because although he is not against the project, he still feels there are a few issues that need to be addressed and can not support it tonight. The City Attorney explained a Resolution and Ordinance will be brought back to the City Council, confirming their actions of this meeting. Mayor Coontz requested after the Minutes are completed, a staff recap be provided to ensure all points are included in the Resolution and Ordinance. 14. PLANNING AND ENVIRONMENT - None. PAGE 31 CITY COUNCIL MINUTES 15. ADJOURNMENT MOTION - Slater SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez October 10, 2000 The City Council adjourned at I :20 a.m. in memory ofBeveriy Nestande. ~1:dc~c CITY CLERK OANNE COONTZ MAYOR PAGE 32