SR - - STUDY SESSIONS AND REGULAR MAY MEETING CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES March 28, 2017
The City Council of the City of Orange, California, convened on March 28, 2017, at 5:00 p.m. in
an Adjourned Regular Meeting in the Weimer Room, 300 E. Chapman Avenue, Orange,
California.
S:OO P.M. BUDGET STUDY SESSION
1. OPENING
This Adjourned Regular Meeting of the Orange City Council was called to order by
Mayor Smith at 5:00 p.m.
1.1 INVOCATION
Irma Hernandez, Deputy City Manager
�I.�AFT NttNU i'ES - NOT aN
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG 4FFICIAL REGC'��a iJ�iTi:.
A�PRCIVFO 3Y TN� Gi�!Y'
Councilmember Michael Alvarez CS jt j���
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy,Nichols
ABSENT -None
1.4 PRESENTATIONS/ANNOUNCEMENTS/INTRODUCTIONS
Mayor Smith announced that she and Councilmember Whitaker attended a ceremony at
the Chapman University Musco Center honoring Placido Domingo. The Mayor thanked
City staff for their hard work in getting the Musco Center built.
2. PUBLIC COMMENTS -None
3. CONSENT CALENDAR—None
4. REPORTS FROM MAYOR SMITH -None
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ITEM: � ' DATE O�MEETING:�..�,.,.,..��.�.,.:,�._.
CITY COUNCIL MINUTES March 28, 2017
5. REPORTS FROM COUNCILMEMBERS—None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS -None
7. ADMINISTRATIVE REPORTS -None
8. REPORTS FROM CITY MANAGER
8.1 First Study Session for the Proposed Fiscal Year 2017-18 Budget.
City Manager Rick Otto and Finance Director Will Kolbow reviewed a series of slides, outlining
the status of the current year budget and the projections for the FY 2017-18 budget. Also
reviewed were the CIP Budget. Departmental work plans have been made available to the City
Council and any questions can be answered by the Department Heads who were all in attendance.
The local economy remains strong and the real estate market is robust. Three high profile
projects will be under construction this fiscal year. Renovations at Yorba Park have already
begun. Renovations at Shaffer Park and the Metrolink Parking Structure are scheduled to begin
soon.
Fiscal challenges do remain for FY 18 and beyond. Rising costs related to the City's share of
CaIPERS costs will reach 21.2 million in FY 18. CaIPERS costs will be even higher in FY 19
and FY 20.
For FY 17 revenues are projected to be $110.9 million. Sales tax from that number is $41.6
million. $4.9 million of the sales tax figure is from one-time sources. Property tax revenue is
projected at $26.0 million. All other sources are also trending up due to the strong economy.
In response to a question from Mayor pro tem Murphy, it was clarified that sales tax revenue
figures are a little down from the estimated FY 17 revenue figures. Approximately 1% of growth
was originally expected. The growth did not occur and future estimates will use more accurate
figures. Councilmember Whitaker pointed out that gasoline consumption as well as fuel prices
are declining and have been since 2009.
For FY 17 expenditures, the adopted budget was $106.3 million. Projected savings will be $3.7
million from expenditures. The City maintains 42 frozen positions that are unfilled. Total
unreserved fund balance is $8.7 million after all transfers are made. $19.6 million is in the
catastrophic reserve fund.
FY 18 revenues are estimated at $107.8 million. Sales tax is estimated to grow by 1.9 percent.
Property tax estimates indicate a 3.8 percent increase.
PAGE 2
CITY COLJNCIL MINUTES March 28, 2017
8. REPORTS FROM CITY MANAGER(Continued)
In response to a question from Councilmember Alvarez, staff explained that TOT was last
increased approximately 25-30 years ago. An increase to the TOT would require a vote of the
electorate.
For FY 18 expenditures are estimated at $107.6 million. This is a 1.3% increase over last year.
83% of General Fund costs are related to staffing. 72% is from PERS contributions.
In response to a question from Mayor Smith, staff explained that a catastrophe would be a
physical act of nature like an earthquake, fire, or flood. A catastrophe might trigger the use of the
catastrophic reserve. Councilmember Whitaker pointed out that the reason for a 25% reserve is
so that the City could operate one full quarter without any revenues coming in. City Manager
Otto reminded Council that no money was put into the reserve during the recession years and
now, for the fourth year in a row, staff plans to place $500,000 in the reserve.
Challenges include the Ca1PERS contributions increases. Pension costs are related to payroll
while the unfunded liability for past shortfalls will be a fixed dollar amount. The FY 18 increase
will be $2.3 million. The City will see increases of$3.0 million each year for the next several
years as the Ca1PERS costs are fully realized.
Contractual obligations will increase by approximately $500,000. Departmental operating
budgets will also increase. Mayor pro tem Murphy noted that no cost of living increases or
benefit enhancement are included in this budget.
Budget priorities include no new positions. The City has approximately 40 frozen positions and
currently, approximately 20 — 30 open positions. Mayor Smith noted that most of her contact
with residents are complaints due to reduced staffing levels. Yet, most residents in the City of
Orange are satisfied. The Mayor wants the Council to be kept up to date on staffing issues as
keeping the City workers happy and not too overworked is a priority.
Councilmember Nichols noted that the savings on the expenditure side of the budget comes
partly from the 40 frozen positions the City is carrying. The Police Department has three
vacancies with a few more coming due to retirements. Councilmember Nichols would like a
breakdown of where the savings are by department from staffing shortages.
Economic indicators indicate that the economy is still strong. For the next 12 -18 months the
economy looks healthy. Auto sales should slow but overall the City economy should remain
strong. Planning activity is still strong.
The five year CIP budget includes 154 projects (123 projects are continuations of existing
projects and 31 projects are new to this budget). For FY 18 the City Council is investing $23.2
million and $83.5 million over the five year term for the City's infrastructure.
PAGE 3
CITY COUNCIL MINUTES March 28, 2017
8. REPORTS FROM CITY MANAGER(Continued)
Projects include renovations at Shaffer Park, renovations at Yorba Park and improvements of the
trail system. Mayor Smith noted that OPA does a wonderful job raising funds and maintaining
the trails out in East Orange. City Manager Otto noted that the City is working with accepting
easements which is making the trails project easier with OPA.
Mayor pro tem Murphy noted that the OCTA project had a bid protest due to an America First
provision in the contract and an elevator that was made in Germany. This protest caused OCTA
to re-bid the project causing delay.
Gas Tax revenue and OC Measure M revenues are down this current year. There will be a little
less available for road repair and pavement plan projects. $1.3 million will be spent on the
Pavement Management Program. Eleven projects are planned for water production.
Mayor pro tem Murphy asked staff to note the Orange County wide OCTA signal modification
projects that impact the City of Orange.
Phase two of the City Council Chamber project is progressing. A replacement of six servers and
a network overhaul will occur in FY 18. Plans are being developed to build one unified access
program for all employees into City facilities.
Strong support exists from downtown merchants and businesses for the building of a second
parking structure to support downtown parking. Strong support exists for paid parking in the
downtown area.
Mayor Smith asked if an assessment will be completed to decide if a parking structure is justified
in that area. She wants to see what the impact of the new Metrolink parking structure will mean
for downtown and what concerns the close by residential neighborhood will have.
Department work plans are available for review and any comments can be forwarded to the City
Manager.
Mayor Smith thanked the City Manager and staff for all their hard wark. Mayor Smith also
acknowledged the City Treasurer, Richard Rohm, for his work.
ACTION: Received and filed report.
PAGE 4
CITY COLJNCIL MINUTES March 28, 2017
9. LEGAL AFFAIRS—None
10. RECESS TO CLOSED SESSION
a. Conference with Labor Negotiator pursuant to Government Code Section
54957.6:
City Negotiators: Laura Katy, Special Counsel.
Employee Organizations: All Bargaining Groups.
11. ADJOURNMENT — The Study Session adjourned at 7:20 p.m. The next Regular City
Council Meeting will be held on Tuesday April 11, 2017, at 4:30 p.m. for an Employee
Recognition, 6:00 p.m. in the Council Chamber for a Regular Session with a Closed
Session beginning at 5:00 p.m., if necessary.
ROBERT ZORNADO TERESA E. SMITH
CHIEF CLERK MAYOR
PAGE 5
CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES May 2, 2017
The City Council of the City of Orange, California, convened on May 2, 2017, at 5:00 p.m. in a
Special Meeting in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
S:OO P.M. BUDGET STUDY SESSION
l. OPENING
This Special Meeting of the Orange City Council was called to order by Mayor Smith
at 5:12 p.m.
1.1 INVOCATION
Greg Warren, Public Works Department '`�'�� Mt��4��E� - NOTAN
OFFICIA� ��GCti4D UNT�L
APPRQVEG i3Y �"!-!E GIYY"
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG CO�JII�C�L
Mayor Teresa E. Smith
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy,Nichols
ABSENT -None
1.4 PRESENTATIONS/ANNOUNCEMENTS/INTRODUCTIONS
Mayor Smith shared how honored she feels to serve as the elected leader of Orange.
2. PUBLIC COMMENTS -None
3. CONSENT CALENDAR-None
4. REPORTS FROM MAYOR SMITH
Mayor Smith announced the loss of her brother, Mathew Robert Smith. He passed away
suddenly at home on Apri127, 2017. Please keep the family in your prayers.
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ITEM: ` DATE 0�'M��1'ING: � _ ��� - ,'� PAGE 1
CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES May 2, 2017
5. REPORTS FROM COUNCILMEMBERS -None
6. REPORTS FROM BOARDS, COMMITTEES,AND COMMISSIONS -None
7. ADMINISTRATIVE REPORTS -None
8. REPORTS FROM CITY MANAGER
8.1 Second Study Session for the Proposed Fiscal Year 2017-18 Budget.
City Manager Rick Otto presented the second budget study session. The figures for tonight's
study session will be very similar to the first study session with a few slight revisions. Staff is
pleased to present a balanced budget.
Finance Director Will Kolbow presented a series of slides. For FY 17, staff estimates that the
City will have $5.4 million revenues over expenditures. With transfers out that were previously
approved, the estimated unreserved fund balance will be $8.6 million. Revenues are up by 1.2%
not counting one time revenues related to property sales. Sales tax revenue is estimated at $42.3
million. Orange is 25th in the State in terms of sales tax revenue and Sth in Orange County.
Councilmember Whitaker noted how the Board of Equalization fee dropped and is now
increasing slightly in this year's budget, a 1.4% increase. The higher rates from two budgets back
were due to fees charged by the State to administer all the transfers the State requires.
For FY 18, property tax revenues are trending up for commercial properties. There has been an
increase in the number of transactions. Staff expects a bump in revenue due to this uptick in
transactions. Transient Occupancy Tax remains at 10% in Orange.
Property tax revenue for FY 18 is estimated to be $26.9 million.
Mayor pro tem Murphy asked if the City receives reports on how many night stays are occurring
at Orange hotels. Staff believes that the TOT reports the City receives from hotels includes how
many stays. Murphy noted that visitors that stay in Anaheim pay a 15% TOT and a 2%resort fee.
Councilmember Nichols noted that while counter visits are up, the revenue for licenses and
permits is down a little. Staff indicated that they are very conservative with estimates for the
revenue numbers at the counter, as this is the first area to drop in a down economy.
FY 18 expenditures are estimated at $107.5 million. One factor is the animal control contract has
increased from the County. $1.2 million is the estimate from the County for animal control
services. The County indicates that salaries, benefits, services and supplies along with overtime
are the main drivers of the increase. Mayor pro tem Murphy notes that the cost for animal control
services have doubled in the last two years.
PAGE 2
CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES May 2, 2017
8. REPORTS FROM CITY MANAGER(Continued)
Councilmember Nichols noted that the new animal control facility will be completed by the end
of 2017.
Thirty-six full time frozen positions are not included in the budget. Forty full time vacant
positions, are in this budget. Estimates indicate $234,000 revenues over expenses for the FY 18
budget. The total available fund balance is estimated at $4.6 million after transfers out.
For the water fund, due to the end of the drought and a small increase in consumption in the City,
the fund will not run out of money this budget. A water study is being completed to analyze the
current rate structure.
Public Comments:
Marshall Krupp — Has concerns with the streets in his neighborhood. They are not in good
condition. The streets need to be re-surfaced.
Reserve Policy: Currently the City's catastrophic reserve is at 18.7% of the budget. The current
reserves are $20,067,960. The recommended goal is 20% of the budget with a minimum of 12%.
The reserves are for economic uncertainties.
Mayor pro tem Murphy noted that the current reserves in the CIP program is over the
recommended amount of two times the highest year. Average life of equipment varies based on
the type of vehicle. Use of a weighted average would help account for the different vehicle types
and life expectancies.
Mayor Smith noted that a catastrophe is for emergency purpose. Acts of God. Earthquakes.
Floods. Financial meltdowns not caused by an act of God should also be planned for. Three
months of operating expenses to cover during emergencies is the minimum goal of the
catastrophic reserve.
City Treasurer Richard Rohm agrees that the idea of a reserve policy is an excellent one.
City Manager Otto mentioned the PERS cost issues that will hit hard in FY19 and beyond. PERS
costs will increase by $3 million just for PERS increases in FY 19. Revenue projections will not
cover these higher levels. The City Manager will work with the Department Heads to strategize
how to close these gaps. Thank you to the Council for the feedback and to staff for the effort in
providing the budget. Finally the City Manager introduced Robert Moya as the new budget
officer.
Mayor Smith thanked staff for the great look at the budget. Wants to ensure that staff has the
tools needed to do the accurate forecasts. Thank you to staff for your efforts. Please keep the
Council informed of any changes to forecasts or the budget.
ACTION: Received and filed report.
PAGE 3
CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES May 2, 2017
9. LEGAL AFFAIRS—None
10. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 6:50 p.m.
a. Conference with Labor Negotiator pursuant to Government Code Section
54957.6:
City Negotiators: Laura Kalty, Special Counsel.
Employee Organizations: All Bargaining Groups.
b. Conference with Legal Counsel—Potential Litigation—Significant exposure to
Litigation pursuant to Government Code Section 54956.9(d)(2).
1) One potential case.
c. Conference with Real Property Negotiator—Real property negotiations pursuant
to Government Code Section 54956.8:
Property: 171 and 177 N. Cypress Street.
11. ADJOURNMENT—The City Council adjourned at 9:05 p.m.
The next Regular City Council Meeting will be held on Tuesday May 9, 2017, at 6:00
p.m. in the Council Chamber with a Closed Session beginning at 5:00 p.m., if necessary.
ROBERT ZORNADO TERESA E. SMITH
CHIEF CLERK MAYOR
PAGE 4
CITY COUNCIL ORANGE, CALIFORNIA
MEETING MINUTES MAY 9, 2017
The City Council of the City of Orange, California convened on May 9, 2017, at 5:00 p.m. in a
Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.
5:00 P.M. SESSION
1. ROLL CALL
PRESENT —Alvarez, Whitaker, Smith, Murphy,Nichols
ABSENT —None
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2. ORAL COMMUNICATIONS—None pFFICiAL RECC�►
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3. RECESS TO CLOSED SESSION—The City Council recessed to Closed Session at 5:00
p.m. with all Members present
a. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:
City Negotiators: Laura Kalty, Special Counsel.
Employee Organizations: All Bargaining Groups.
4. ADJOURN TO REGULAR MEETING —At 6:10 p.m. the City Council adjourned the
Closed Session to its Regular Meeting on Tuesday, May 9, 2017, in the Council Chamber.
��°_" - -�
�M� DATE 0�MEETING�
CITY COLTNCIL MINUTES MAY 9, 2017
6:00 P.M. SESSION
1. OPENING
This Regular Meeting of the Orange City Council was called to order by Mayor Smith at
6:11 p.m.
1.1 INVOCATION
Given by Pastor Brenton Fessler from Refuge OC.
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Kimberlee Nichols.
1.3 ROLL CALL
PRESENT —Alvarez, Whitaker, Smith, Murphy,Nichols
ABSENT —None
1.4 PRESENTATIONS/ANNOUNCEMENTS/INTRODUCTIONS
Presentation by Michael Markus, Orange County Water District.
Proclamation Recognizing Donate Life Month.
Proclamation Recognizing National Public Works Week, May 21-27, 2017.
Presentation to Willie and Ann Mattern.
Presentation of a Retirement Resolution to Rebecca Serna.
Mayor Smith announced events taking place at the Orange Public Library.
2. PUBLIC COMMENTS
Jack Raubalt—introduced Chapman University Student Government Association President
Mitchell Rosenberg
Mitchell Rosenberg—introduced himself as the new 2017-18 Chapman University Student
Government Association President.
Jerome Ryan—suggested that City Council extend the Public Comment speaker time from
three minutes to five minutes, and move the Public Comment section before all the
Presentations and Announcements.
PAGE 2
CITY COUNCIL MINUTES MAY 9, 2017
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 Confirmation of warrant registers dated April 6, April 14, April 20, and April 28,
2017. (C2500.J.1.7)
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of April 11, 2017. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Monthly Treasurer's Reports for January,February, and March 2017. (C2500.F)
ACTION: Received and filed.
3.5 Number not used.
AGREEMENTS
3.6 Participate in a one-time intergovernmental transfer (IGT) between the City of
Orange and CalOptima. (A2100.0; AGR-6469)
ACTION: 1) Approved agreements and authorize the Mayor and City Clerk to execute on
behalf of the City; and 2) Authorized the transfer of$714,124 of reimbursable funds to the
California State Department of Health Services.
3.7 Fourth Amendment to Agreement with Conduent State and Local Solutions,Inc. for
Information Technology Services. (A2100.0; AGR-5700.4)
NOTE: Mayor pro tem Murphy recorded an abstention due to a potential conflict with
employment.
ACTION: Approved the Fourth Amendment to the Information Technology Services
Agreement with Conduent State and Local Solutions, Inc., extending the Agreement for
one year commencing July 1, 2017, and terminating on June 30, 2018, and authorized the
Mayor to execute the Amendment.
PAGE 3
CITY COLJNCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
3.8 Agreement to replace the Yorba Park Restroom/Storage Building and appropriation
of Park Acquisition revenue. (A2100.0; AGR-6470)
ACTION: 1)Appropriated $322,740 from unreserved Fund 510 (Park Acquisition- Infill)
to Fund 510.7021.56020.20135 (Yorba Park Renovation); and 2) Approved agreement
with KASA Construction, Inc. for the not-to-exceed amount of$322,740 and authorized
the Mayor and City Clerk to execute on behalf of the City.
APPROPRIATIONS
3.9 Appropriation of funds received from State of California Office of Emergency
Services. (C2500.H)
ACTION: Accepted into the City's revenue budget a total reimbursement of$109,084.75
in reimbursement payments into account number 100.3021.48212 —Reimbursement from
OES, within the following project numbers:
Project Revenue
Descri tion of Reimbursement Account Amount
Blue Cut Fire 40136 $48,843.01
Rey Fire 40137 20,310.17
Marshes Fire 40139 19,924.98
Sa e Fire 40130 20,006.59
Total: $109,084.75
Authorized the appropriation into expenditure account number 100.3021.50221 —
Overtime-Safety, within the project numbers and amounts as follows:
Project Expenditure
Descri tion of Ex enditure Account Amount
Blue Cut Fire 40136 $48,420.75
Rey Fire 40137 20,003.29
Marshes Fire 40139 19,924.98
Sa e Fire 44130 20,006.59
Total: $108,355.61
Authorized the appropriation into expenditure account number 100.3021.53860 — Strike
Team Expenditures, within the project numbers and amounts as follows:
Project Expenditure
Descri tion of Ex enditure Account Amount
Blue Cut Fire 40136 $422.26
Rey Fire 40137 306.88
Total: $729.14
PAGE 4
CITY COUNCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
3.10 Appropriation of Donation from the Orange Public Library Foundation
(Foundation) of$30,000. (C2500.I)
ACTION: 1) Accepted into the City's revenue budget a $30,000 donation from the
Foundation into revenue account number 100.2001.48390.19322 (Foundation Donations);
and 2) Authorized the appropriation of $30,000 into the following expenditure account
numbers:
100.2004.55131.19322—Furniture, Machinery, Equip (Foundation) $20,000
100.2017.55131.19322—Furniture, Machinery, Equip (Foundation) $10,000
$30,000
3.11 Number not used.
3.12 Acceptance and appropriation of$21,444 in energy efficiency rebates from Southern
California Gas Company for replacement of Hart Park Pool equipment. (C2500.N)
ACTION: 1) Accepted into the City's revenue budget an $11,994 rebate from Southern
California Gas Company, into revenue account number 511.0000.48210.00000, Park
Acquisition and Development-Expense Reimbursements; 2)Authorized an appropriation
of$11,994 into expenditure account number 511.7021.56032.30043 Park Acquisition and
Development - Hart Park Pool Heaters; 3) Accepted into the City's revenue budget a
$9,450 rebate from Southern California Gas Company, into revenue account number
100.7022.48210.00000, General Fund - Expense Reimbursements; and 4) Authorized an
appropriation of$9,450 into expenditure account 100.7022.53670.00000 General Fund -
Other Maintenance Items.
3.13 CLAIMS (C3200.0)
The following claim(s) have been received and investigated by the City Attorney's Office
and/or the Risk Manager. After a thorough investigation with the involved departments, it
is the recommendation of the City Attorney's Office that the claim(s) be denied.
a. GRBCON, Inc.
b. George H. Witthoeft
c. Timothy Rumford
d. Candida Galvan
e. John Silberstein
f. Amanda Anselmi
g. Jenna Nicole Boyer
h. Kirsten Wallace
ACTION: Denied Claim(s) for damages and referred to City Attorney and Adjuster.
PAGE 5
CITY COUNCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
CONTRACTS
3.14 Final Acceptance of Bid No. 167-15; Water Division Antenna Tower Installation
project performed by Tashjian Towers Corporation; and authorization to file the
Notice of Completion with the County Recorder. (No staff report required.)
ACTION: Accepted public work improvements,authorized release of Indemnity Company
of California, Bond No. 704916P in the amount of$137,303.16 to the contractor on said
job, and authorized the Mayor and City Clerk to execute the Notice of Completion.
3.15 Final Acceptance of Bid No. 167-11; Orange City Hall Mechanical Roof Top Units
Replacement Project performed by NKS Mechanical Contracting Inc; and
authorization to file Notice of Completion with the County Recorder. (No staff report
required.)
ACTION:Accepted public work improvements,authorized release of Old Republic Surety
Company in the State of Wisconsin, Bond No. WCN 2165155 in the amount of
$$256,122.00 to the contractor on said job, and authorized the Mayor and City Clerk to
execute the Notice of Completion.
3.16 Award of Contract - Bid No. 167-34; Annual Pavement Maintenance at Various
Locations, Fiscal Year 2016-2017. (A2100.0; AGR-6471)
ACTION: Awarded the contract in the amount of$4,214,900 to R.J.Noble Company, and
authorized the Mayor and City Clerk to execute on behalf of the City.
3.17 Award of Contract - Bid No. 167-37; Reservoir 5 Valves Replacement. (A2100.0;
AGR-6472)
ACTION: Awarded the contract in the amount of$67,540 to Valverde Construction, Inc.,
and authorized the Mayor and City Clerk to execute on behalf of the City.
3.18 Number not used.
3.19 Rate adjustment for street sweeping services. (A2100.0; AGR-5963)
ACTION: Approved the 2%rate adjustment for CR&R.
MAPS
3.20 Final Map for Tract 17816—Marywood Hills. (T4000.0)
ACTION: Approved Final Tract Map No. 17816 and accepted all dedications.
PAGE 6
CITY COUNCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
PURCHASES
3.21 Purchase new automated payment machines (APMs) used for print cost recovery at
the Main Library, and execute the Smart Access Manager (SAM) End User License
and Maintenance Agreement. (A2100.0; AGR-6473)
ACTION: Authorized the purchase of new payment equipment and associated hardware
and software from Comprise Technologies in an amount not-to-exceed $49,978; and
authorized the Mayor and City Clerk to execute the SAM End User License and
Maintenance Agreement on behalf of the City.
REPORTS
3.22 City Traffic Commission Activity Report for 2016. (OR1800.019)
ACTION: Received and filed.
RESOLUTIONS
3.23 Recognition of Rebecca Serna for 16 years of service to the City of Orange.Resolution
No. 10996. (C2500.,n
A Resolution of the City Council of the City of Orange Recognizing Rebecca `Becky"
Serna for 16 Years of Loyal Service to the City of Orange and the Human Resources
Department.
ACTION: Approved.
3.24 Approval of Tentative Tract Map No. 0034-14, Major Site Plan Review No. 0785-14,
Design Review No. 4768-14,and Mitigated Negative Declaration No. 1841-15,located
at 6231 E. Wimbleton Court. Resolution No. 10999. (T4000.0)
A Resolution of the City Council of the City of Orange approving Tentative Tract Map No.
0034-14,Major Site Plan ReviewNo.0785-14,Design ReviewNo.4768-14, and Mitigated
Negative Declaration No. 1841-15, located at 6231 E. Wimbleton Court.
ACTION: Approved.
PAGE 7
CITY COIINCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
3.25 Landscape Maintenance Assessment District 86-2 (LMD 86-2 Santiago Hills).
Resolution No. 11000. (L1200.0)
NOTE: Councilmember Nichols recorded an abstention due to a potential conflict with a
nearby property interest.
A Resolution of the City of Orange regarding Landscape Maintenance Assessment District
86-2 (LMD 86-2 Santiago Hills) declaring its intention to provide for an annual levy and
collection of assessments for Fiscal Year 2017-2018.
ACTION: 1)Adopted Resolution No. 11000 to approve the Preliminary Engineer's Report
for Landscape Maintenance District 86-2; 2) Declared the intent to levy an annual
assessment;and 3)Set June 13,2017,as the date for the Public Hearing on the assessments.
3.26 Landscape Maintenance Assessment District 15-1 (LMD 15-1 Santiago Hills
Overlay). Resolution No. 11001. (L1200.0)
NOTE: Councilmember Nichols recorded an abstention due to a potential conflict with a
nearby property interest.
A Resolution of the City of Orange regarding Landscape Maintenance Assessment District
15-1 (LMD 15-1 Santiago Hills Overlay) declaring its intention to provide for an annual
levy and collection of assessments for Fiscal Year 2017-2018.
ACTION: 1)Adopted Resolution No. 11001 to approve the Preliminary Engineer's Report
for Landscape Maintenance District 15-1; 2) Declared the intent to levy an annual
assessment;and 3)Set June 13,2017,as the date for the Public Hearing on the assessments.
3.27 Landscape Maintenance Assessment District 94-1 (Sycamore Crossing). Resolution
No. 11002. (L1200.0)
A Resolution of the City Council of the City of Orange regarding Landscape Maintenance
Assessment District 94-1 (Sycamore Crossing) declaring its intention to provide for an
annual levy and collection of assessments for Fiscal Year 2017-2018.
ACTION: 1) Adopted Resolution No. 11002 declaring the City's intent to provide for an
annual levy and collection of assessments for FY 18; 2) Approved the Preliminary
Engineer's Report; and 3) Set June 13, 2017, as the date for the Public Hearing.
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CITY COUNCIL MINUTES MAY 9, 2017
3. CONSENT CALENDAR(Continued)
3.28 Reauthorization of OMC Chapter 13.81 Relating to Cable Franchise Fees.Resolution
No. 11003. (F1100.0)
A Resolution of the City Council of the City of Orange Reauthorizing OMC Chapter 13.81
Relating to Cable Television Franchise Fees.
ACTION: Approved.
MOTION —Murphy
SECOND —Whitaker
AYES —Alvarez, Whitaker, Smith, Murphy,Nichols
Mayor pro tem Murphy recorded an abstention on Item 3.7. Councilmember Nichols
recorded an abstention on Items 3.25 and 3.26. All other items on the Consent Calendar
were approved as recommended.
END OF CONSENT CALENDAR
* * * * * * * *
4. REPORTS FROM MAYOR SMITH—None
5. REPORTS FROM COUNCILMEMBERS—None
6. REPORTS FROM BOARDS, COMMITTEES,AND COMMISSIONS—None
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CITY COUNCIL MINUTES MAY 9, 2017
7. ADMINISTRATIVE REPORTS
7.1 Consideration of a City sponsored valet parking service in Old Towne. (A2100.0;
AGR-6474)
NOTE: Councilmember Whitaker recorded an abstention due to his law firm having two
clients in Old Towne, and Councilmember Alvarez recorded an abstention due to a
potential conflict with a nearby property interest. They left the dais at 7:01 p.m.
City Manager Rick Otto introduced the item stating that a focus group was created to look
at the parking issues in Old Towne. The focus group consisted of downtown stakeholders
such as restaurant owners,property owners,residents in the area and others with an interest
in Old Towne. A valet parking service program is one of the options that the group
proposed. Senior Economic Development Project Manager Susan Galvan provided the
staff report and answered Council's questions. She explained that an extensive parking
study identified underutilized parking lots that could be used for this valet parking service
pilot program. Residents in the surrounding neighborhood that may be impacted will be
sent a notice prior to the start of the valet service.
Public Speakers:
Nate Wisely—expressed concerns with how the program will impact parking on Sundays
during church services and church events.
Sandy Quinn, President of Old Towne Preservation—spoke in support of the program and
thanked staff for forming the Old Towne parking focus group.
Dan Jensen—spoke in support of the program.
During discussion Council requested that staff send information out about the program,
especially to those that have reached out to the City with questions or concerns. Staff
intends on releasing a news article on the City's website and through other various media
outlets with information regarding the program. In addition, local merchants will be
marketing the program to their patrons.
MOTION —Murphy
SECOND — Smith �
AYES —Smithy, Murphy,Nichols
ABSENT (RECUSED)—Alvarez, Whitaker
Moved to: 1) Direct the City Manager to enter into a contract with AmeriPark LLC
(AmeriPark) to provide a City sponsored valet parking service for a three month period
with one three month extension; and 2) Authorize the use of public parking lots for the
valet parking service as needed.
Councilmembers Whitaker and Alvarez returned to the dais at 7:42 p.m.
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CITY COUNCIL MINUTES MAY 9, 2017
8. REPORTS FROM CITY MANAGER—None
9. LEGAL AFFAIRS
9.1 Amending various sections of Title 17 to implement changes for accessory dwelling
units. Ordinance No. 02-17 (Second Reading). (A2500.0)
An Ordinance of the City Council of the City of Orange amending various sections of Title
17 of the Orange Municipal Code to implement changes for accessory dwelling units in
accordance with the provisions of state law.
MOTION —Murphy
SECOND —Smith
AYES —Alvarez, Whitaker, Smith, Murphy,Nichols
Moved that Ordinance No. 02-17 be read by title only and same was approved and adopted
by the preceding vote.
10. ITEMS RELATING TO THE SUCCESSOR AGENCY OF THE ORANGE
REDEVELOPMENT AGENCY—None
11. PUBLIC HEARINGS
11.1 Zone Change No. 1280-16, Minor Site Plan Review No. 0854-16, and Design Review
No. 4853-16, located at 140 N. Hewes Street. (Z1500.0)
Time set for a public hearing to consider Zone Change No. 1280-16, Minor Site Plan
Review No. 0854-16, and Design Review No. 4853-16, located at 140 N. Hewes Street.
Senior Planner Robert Garcia provided the staff report and answered Council's questions.
He explained that the zone change is being made to match that of the surrounding area
which includes commercial development and residential single family and multi-family
uses.
THE MAYOR OPENED THE PUBLIC HEARING.
Public Speakers:
Nick Avalino, applicant — spoke in support of the project and answered Council's
questions.
THE MAYOR CLOSED THE PUBLIC HEARING.
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CITY COUNCIL MINUTES MAY 9, 2017
11. PUBLIC HEARINGS (Continued)
ORDINANCE NO. 03-17 (First Reading)
An Ordinance of the City Council of the City of Orange approving Zone Change No. 1280-
16 for the establishment of Multi-Family Residential (R-3) zoning consistent with the
existing Low Medium Density Residential (LMDR) General Plan Land Use Designation
for a vacant lot located at 140 N. Hewes Street.
MOTION —Whitaker
SECOND —Murphy
AYES —Alvarez, Whitaker, Smith, Murphy,Nichols
Moved that Ordinance No. 03-17 be approved for First Reading and same was set for
Second Reading by the preceding vote.
RESOLUTION NO. 11004
A Resolution of the City Council of the City of Orange approving Minor Site Plan 0854-
16, and Design Review No. 4853-16 for the construction of a one-story single family
residence with an attached accessory second dwelling unit and a detached garage located
at 140 N. Hewes Street.
MOTION —Murphy
SECOND —Alvarez
AYES —Alvarez, Whitaker, Smith, Murphy,Nichols
Moved to approve Resolution No. 11004.
12. ADJOURNMENT—The City Council adjourned at 8:00 p.m.
The next Regular City Council Meeting will be held on Tuesday, June 13, 2017, at 6:00
p.m. in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.
MARY E MURPHY TERESA E. SMITH
CITY CLERK MAYOR
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