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Special Meeting 04/07/11APPROVED BY THE CITY COUNCIL ON APRIL 26, 2011 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A SPECIAL MEETING April 7, 2011 The City Council of the City of Orange, California, convened a Special Meeting at 5:30 p.m. on April 7, 2011, in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 5:30 P.M. SPECIAL MEETING 1. OPENING 1.2 PLEDGE OF ALLEGIANCE – led by Councilmember Bilodeau 1.3 ROLL CALL PRESENT - Whitaker, Smith, Cavecche, Dumitru, Bilodeau ABSENT - None Note: Councilmember Whitaker arrived at 5:40 p.m. 2. PUBLIC COMMENTS - None 3. RECESS TO CLOSED SESSION The City Council recessed at 5:40 p.m. to a Closed Session for the following purposes: a. Conference with Labor Negotiator pursuant to Govt. Code Section 54957.6: City Negotiators: Assistant City Manager Rick Otto Human Resources /Employee Relations Director Steven Pham Assistant Human Resources Director Mike Harary Attorney Jeffrey Freedman Employee Organizations: All Bargaining Units b. Public Employee Performance Evaluation pursuant to Govt. Code Section 54957. Title: City Manager 4. REPORTS FROM COUNCILMEMBERS 4.1 Councilmember Bilodeau - Request for Consideration of the following Bill: SB 77 – Community Redevelopment (Committee on Budget and Fiscal Reform) Councilmember Bilodeau stated SB 77 is being considered in the State Assembly, passing out of the State Senate; and currently awaiting a vote. He stated that the bill would wind down Redevelopment Agencies in California, which he supported. He stated the agencies divert desperately needed money away from schools, public safety, special districts, and if the bill passed, the City could see up to a $3 million increase in its property tax increment. He noted his opposition to the redevelopment set -aside housing increment for low- income housing, stating that the private sector, through the free market, would develop low- income housing with the concessions currently provided by the cities. He added the agencies distort free markets—noting that part of the city's redevelopment funds are provided to two large corporations not needing the assistance, but that they are paid to ensure they stay in Orange. He requested the Council take a support position on the bill. CITY COUNCIL MINUTES April 7, 2011 4. REPORTS FROM COUNCILMEMBERS (Continued) Speakers — Assemblyman Chris Norby spoke in support of SB 77. He stated that the abolition of redevelopment agencies would amount to a $1.7 billion immediate state savings, with additional long -term savings. He stated that the passage of SB 77 would allow Redevelopment Agencies to continue for the sole purpose of paying off bonded indebtedness, with their ongoing increment being restored to education. Wayne King thanked City staff for their timely response to previous requests he made regarding the review of redevelopment in the City. He stated that redevelopment has been a success in Orange, but has caused a parking problem. He summarized his support for SB 77. Mayor Cavecche stated she would not support the motion. She stated the proponents of this bill believe that the means justifies the end. She stated her approval of the goal of abolishing redevelopment agencies, but that she felt this bill would not accomplish that in a correct way. She noted that it would require the establishment of another housing authority. She stated that the bill is still being worked on and she could not support a bill without knowing its full ramifications. She noted this bill would actually punish Orange for its conservative approach, yet reward cities that have accumulated massive amounts of debt. She stated it punishes the County as well, due to Orange County being a basic aid county. She stated it would circumvent the State's need to apply spending caps, and address pension reform. She stated a hope for a bill she could support that would address all of these concerns. Councilmember Whitaker stated his agreement with the Mayor, noting that there are still on- going negotiations to craft a bill that would have a phased -in sunset of redevelopment, as well as providing for ways to repatriate assets back to the localities instead of a state grab. He stated hope for the end of redevelopment that favors one business over another. Mayor pro tem Smith stated she would not support the motion due to her support for the Orange Redevelopment Agency, and what it has been able to accomplish over the many years it has been in existence. She stated the list of redevelopment supported projects included parks, community facilities, roads, wells, and parking. She refuted that it only supports businesses and restaurants. She stated the need for housing set -aside as an incentive. Councilmember Bilodeau stated it is one vote away from passage in the Assembly. He stated it will pass, and he felt it was important for the City to weigh in before its passage. MOTION - Bilodeau SECOND - Dumitru AYES - Dumitru, Bilodeau NOES - Whitaker, Smith, Cavecche Moved to take a support position on SB 77, and transmit a letter to the author in Sacramento. (MOTION FAILED) Paize 2 CITY COUNCIL MINUTES April 7, 2011 4. REPORTS FROM COUNCILMEMBERS (Continued) Councilmember Bilodeau — Request for Consideration of the following Bills: AB 385 — High -speed Rail (Harkey) AB 76 — High -speed Rail (Harkey) Councilmember Bilodeau stated that AB 385 would require that an investment -grade analysis be done on the project and the resulting business plan be presented to the legislature. He stated the voters approved Proposition IA in 2008 providing approximately $10 billion in general obligation bonds to build a high -speed rail project and the cost has now ballooned to $40 billion to complete the system. He reiterated his concerns leading to his opposition to the project. He requested support for both bills and the transmittal of a letter to Assemblywoman Harkey, the author, stating the City position. Councilmember Whitaker stated that the airports and airlines, which are government- subsidized high -speed transportation systems, lack ridership levels to fund the profitable operation of the systems. He stated that transportation studies show a lack of ridership for a high -speed rail as well. Councilmember Dumitru emphasized his support to transmit the letter of support, stating that the project is a fraud on the taxpayers of California. He stated he would never support high -speed rail, nor its impacts on Orange. MOTION - Bilodeau SECOND - Whitaker AYES - Whitaker, Dumitru, Bilodeau NOES - Smith, Cavecche Moved to support both bills and transmit a letter to Assemblywoman Harkey, the author, stating the City's position. (MOTION PASSED) 4.2 Councilmember Dumitru — Request for Consideration of the following Bill: AB 26 — The Secure Immigration Enforcement Act (Donnelly) NOTE: This item was withdrawn from consideration due to the bill not passing out of the Assembly Judiciary Committee. Paue 3 CITY COUNCIL MINUTES 5. ADJOURNMENT — The City Council adjourned at 9:15 p.m. April 7, 2011 Declaration of City Clerk, Mary E. Murphy, declaring posting of City Council agenda of a special meeting of April 7, 2011 at Orange Civic Center kiosk, Police facility at 1107 North Batavia, and the Main Public Library at 407 E. Chapman; 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; and available at the Civic Center City Clerk's Office. AN LIN ANDRE U S DEPUTY CITY CLERIC Paue 4