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05-12-1998 Council MinutesAPPROVED BY THE CITY COUNCIL ON MAY 26, 1998 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING May 12, 1998 The City Council of the City of Orange, California convened on May 12, 1998 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 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Mayor Coontz Presentation of Colors - Girl Scout Troop 1770, Jamie Sugarman, Scout Leader 1. 2 ROLL CALL PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez 1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz announced the Friends of the Library donated $3,500 to the City from the sale of books. The money will be used for the Summer Reading and Holiday Programs.The City Manager introduced the new Assistant to the City Manager, Barbara Azeka.Mayor Coontz reported on a block party hosted by the Mills Development Corporation which was attended by members of the Council and the community. The Mills Development Corporation is known for the creativity oftheir projects. Councilman Murphy expressed excitement with the new development, which will be called "The Block at Orange." Mayor pro tem Slater commented he is impressed with the plans for the project, especially the Skate Park which will be the largest in the country.Barbara DeNiro questioned the square footage of the Skate Park planned for the Mills project. Ms. DeNiro commented that 400 parking spaces had been eliminated at the Mills and expressed concern that there be adequate parking.The City Manager said the parking issues have been well defined and reviewed. The elimination of the parking places was a result of examining the property for space that would not be leased.PAGE 1 CITY COUNCIL MINUTES May 12, 1998 1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS (Continued) The City Attorney reported the City is beginning to receive a pro-rata distribution from County settlements with various defendants involved in the bankruptcy. The City receives .8% of all settlements. The First Boston settlement was for $52 million, which was approximately $416,000 to the City of Orange. He clarified it may be awhile before the City receives the money. The settlement has to be approved by the court and could be opposed by various defendants.1.4 PROCLAMATIONS A Proclamation honoring National Public Works Week, May 17-23, 1998 was accepted by Harry Thomas, Director of Public Works.2.CONSENT CALENDAR Tape410 2.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of May 12, 1998 at Orange Civic Center, Taft Branch Library at 740 E. Taft Avenue, Police facility at 1107 North Batavia, the Eisenhower Park Bulletin Board, and summarized on Time Warner Communications, all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting.ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk.2.2 Request Council confirmation of warrant registers dated April 23 and 30, 1998. ACTION: Approved.REMOVED AND HEARD SEP ARA TEL Y)2.3 Request approval of City Council Minutes.Adjourned Regular Meeting, April 21, 1998.NOTE: Mayor pro tem Slater abstained due to his absence at the April 21, 1998 meeting.MOTION - Murphy SECOND - Spurgeon AYES - Murphy, Mayor Coontz, Spurgeon ABSTAIN- Slater ABSENT - Alvarez Moved to approve the minutes of April 21, 1998.PAGE 2 CITY COUNCIL MINUTES May 12,1998 2. CONSENT CALENDAR (Continued) Regular Meeting, April 28, 1998. NOTE: Mayor Coontz asked that the minutes be continued as she has questions. MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to continue to May 26, 1998.2.4 Consideration to waivereading in full of all ordinances on the Agenda.ACTION: Approved.AGREEMENTS 2. 5 Consultant Agreement with Thomas M. Pike and Associates for appraisal services.A2100.0 AGR-2714. B)SUMMARY: Additional appraisal services are needed in connection with the Chapman AvenuelMain Street Critical Intersection Widening Project. Thomas M. Pike and Associates has performed similar services under an existing contract with the City. The additional scope of work will increase the contract amount not to exceed $35,000.ACTION: Authorized Mayor and City Clerk to execute consultant agreement with Thomas M. Pike & Associates for real estate appraisal services in an amount not to exceed $35,000. FISCAL IMPACT: Funds are budgeted in Account No. 262-5011-483300-3229 (CIP- Chapman/Main Intersection) - $35,000.REMOVED AND HEARD SEP ARA TEL Y)2. 6 Supplemental Services Agreement with Business Records Corporation ("BRC") to install Internet access for the City's Wide-area Network and Main Library computer systems. (A2100.0 AGR-0978.C. 1)SUMMARY: At the City's request BRC, the contracted network administrator, has submitted a proposal to provide Internet access installation and Web page design services for $55, 000.FISCAL IMPACT: Funds are budgeted in the FY 97-98 MIS budget. 780-1601-426700- 9640 (Data Processing Upgrade).NOTE: Councilman Murphy abstained on this item based on a conflict due to CITY COUNCIL MINUTES May 12, 1998 2. CONSENT CALENDAR (Continued) MOTION - Spurgeon SECOND - Coontz AYES - Slater, Mayor Coontz, Spurgeon ABSTAIN- Murphy ABSENT - Alvarez Moved to approve supplemental services agreement with Business Records Corporation BRC) and authorize the Mayor and City Clerk to execute on behalf ofthe City.2.7 Lease Agreement between the City of Orange and Major League Softball, Inc., for Office Space at Hart Park. (A2100.0 AGR-2242.A)SUMMARY: One year lease agreement between City of Orange and Major League Softball, Inc., for use of City property at Hart Park in the amount of $4,000 per year.ACTION: Approved one year lease agreement with Major League Softball, Inc., for office space at Hart Park in the amount of $4,000 per year.FISCAL IMPACT: Funds will be deposited in Account No. 100-0000-25100 (Rentals).BIDS 2. 8 Approve plans and specifications and authorize advertising bids for modification of six ( 6) traffic signals at various locations. (S4000.S.3.3)SUMMARY: The existing traffic signals at the following intersections are programmed for modifications in the 1997-98 City budget: Chapman Ave. & Prospect St., Glassell St. & Collins Ave., Tustin St. & Palmyra Ave., Glassell St. & Riverdale Ave., Taft Ave. & Glassell St., Main St. & Katella Ave. ACTION: 1) Approved the following fund transfers: 23,450.00 from 284-5032-483199-3126 (TSM ElectronicNisua1 Data Links) into 284-5032-483100- 6140 Collins signal modification account).30,800 from 284-5032- 483199-3126 (TSM ElectronicNisual Data Links) into 284-5032-485100-6137 (Glassel1/Riverdale signal modification account).2) Approved plans and specifications and authorized advertising bids for modification of the existing traffic signals at the locations listed above.FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program utilizing TSIP and 550 developer funds. CITY COUNCIL MINUTES May 12, 1998 2. CONSENT CALENDAR (Continued) 2.9 Contract Change Order No.2 for Project No. D-126, PalmlGlassell Storm Drain.A2100.0 AGR-2883)SUMMARY: A contract in the amount of $405,043 was awarded to David T. Wasden,Inc., August 26, 1997, for the PalmlGlassell Storm Drain. Contract Change Order No. 1 was a "no cost" change in the contract completion time, to delay the start of work to the end of the rainy season.Change Order No.2 will provide for reconstruction of damaged concrete pavement on Grand Street from Almond A venue to Chapman Avenue, and on Palm Street from Orange Street to Center Street resulting from changed subsurface conditions and repair of seriously deteriorated concrete pavement on Grand Avenue outside the original project limits.ACTION: Approved Contract Change Order No.2 in the amount of $50,000 to David T.Wasden, Inc. for the additional quantities at contract unit prices.FISCAL IMP ACT: Funds are budgeted in the following account:262-5021-483300-3120 $ 50,000 (Local Street Maintenance)2.10 Final Contract Change Order for Project No. SP-3215, Fashion Park Screen Wall.A2100.0 AGR-2940)SUMMARY: This Final Contract Change Order authorizes payment to cover additional screen wall removal and reconstruction and extra work beyond the original scope of work. The total contract cost is $140,173.85.ACTION: Approved Final Contract Change Order in the amount of $7,035.70 to Construction Systems for the extra work.FISCAL IMP ACT: Funds are budgeted in the following account:500-5011-485100-3040 $7,035.70 (Capital Improvement)2.11 Award of Contract - Project SP-3218, Critical Intersection Improvement at Main Street and La Veta Avenue. (A2100.0 AGR-3029)SUMMARY: Main Street at La Veta Avenue is a critical intersection identified in the City of Orange GeneralPlan adopted bythe City Council August 22, 1989. Sections 2.3 and 2.4 of the subsequent Main, La Veta, Chapman E.I.R. adopted March 24, 1992,identify Main Street at La V eta Avenue as a significantly impacted intersection due to adjacent development. This project will widen the North and West legs of the intersection to Culver Avenue and Alpine Street, respectively.ACTION: Accepted Bid No. 978-38 in the amount of $449,993.75 from Sequel Contractors, Inc., 12240 S. Woodruff Avenue, Downey, CA 90241 and authorized CITY COUNCIL MINUTES May 12,1998 2. CONSENT CALENDAR (Continued) FISCAL IMP ACT: Funds are budgeted in the following accounts: 550-5011-483300-3227 $336,150.00 (Reimbursable Capital Projects Fund)286-5031-483300- 3227 $113,843.75 (TSIA Fund) Total Funds Available $449,993.75 2.12 Award of Contract - Project SP- 3158, Critical Intersection Improvement at The City Drive and Chapman Avenue. (A2100.0 AGR-3028)SUMMARY: The City of Orange General Plan, adopted August 22, 1989, identifies The City Drive and Chapman Avenue in the Critical Intersection Program component of the circulation element. The improvements at this Critical Intersection are necessary to alleviate congestion and promote a stable circulation system to accommodate future growth. This project is the first segment of the improvements along The City Drive from Chapman Avenue to the Garden Grove Freeway. These improvements will enhance access to the Mills Development scheduled to open in November, 1998.ACTION: Accepted Bid No. 978-33 in the amount of$1,649,833.30 from All American Asphalt, P.O. Box 2229, Corona, CA 91718-2229 and authorized the Mayor and City Clerk to execute the contract.FISCAL IMP ACT: Funds are budgeted in the following account: 550-5011-483300-3235 $1,649,833. 30 (City Drive Widening/Chapman)Total Funds Available 1,649,833.30 2.13 Award of Bid 978-39 for One ArticulatingWheeled Loader, One Wheeled Loader and One Skid Steer Loader. (A2100.0 AGR-3027.I; AGR- 3027.II)SUMMARY: The three loaders are used for construction and maintenance projects by the Public Works Department throughout the City.ACTION: Awarded Bid No. 978-39 to Contractor's Equipment Company in the amount of $125,143.00 for the Articulating Wheeled Loader and Skid Steer Loader; and Cook Equipment Company in the amountof $38,262.03 for the Wheeled Loader.FISCAL IMPACT: Funds in the CITY COUNCIL MINUTES May 12,1998 2. CONSENT CALENDAR (Continued) CLAIMS 2.14 CLAIMS FOR DAMAGES FROM: (C3200.0) a. David A. Young b. Andrew Clayton c. Lorinda Clayton d. Amber Clayton e. Christopher Clayton f. Bryce Clayton g. Brandon Clayton h. Andrew Clayton, Jr. FISCAL IMPACT: None. ACTION: Denied claims for damages and referred to City Attorney and Adjuster. CONTRACTS 2.15 Award of professional service contract to KFM Engineering, Inc. for the Mall of Orange Transit Center Facility and Location Study. (A2100.0 AGR- 3029)SUMMARY: As a result of public testimony from the Wal-Mart site plan approval hearing the City Council authorized a Transit Center and Location Study for the Mall of Orange. This study will examine possible alternatives to the current OCT A bus circulation around the Mall. A thorough analysis of each alternative will ultimately be presented to the City Council for review. KFM Engineering, Inc. has submitted the most responsive proposal to conduct the study.ACTION:1. Authorized the Mayor and City Clerk to execute a contract with KFM Engineering,Inc. in an amount not to exceed $48, 500.00.2. Appropriated funds to the following Account No. 550-5031-486700-6471 Reimbursable Capital Projects-Transit Center Development Program $48,500.00 FISCAL IMP ACT: The above referenced expenditures are reimbursable from the following sources:OCTAGrant Mall of Orange Contribution 85,000. CITY COUNCIL MINUTES May 12, 1998 2. CONSENT CALENDAR (Continued) 2.16 East Chapman Avenue Alignment Study from Crawford Canyon Road to Equestrian Drive. (A2100.0 AGR- 2724)SUMMARY: The City Council authorized an alignment study and right-of-way acquisition for East Chapman Avenue as part of the 1996-97 Capital Improvement Program. A Traffic Study is needed to assess feasible alternatives for the project and aid in selecting the preferred alignment. UMA Engineering, Inc. was retained as a consultant to prepare the study.The Traffic Study will increase the contract cost from $75, 000 to $92,000.ACTION: Approved Contract Change Order No. 1 in an amount not to exceed 17,000.00 to UMA Engineering, Inc. for Professional Engineering Services for completion of a Traffic Study for the East Chapman Avenue Alignment Study.FISCAL IMP ACT: Funds are budgeted in the following account:285-5011-481102- 4009 $263, 000.00 (TSIP East Orange)PARKING RESTRICTIONS REMOVED AND HEARD SEP ARATEL Y)2.17 Time limit parking restrictions on Cambridge St. between Almond Ave. and Chapman Ave., and relocation of the bike lane from Cambridge St. to Shaffer St.S4000.S.3.1.2)SUMMARY: Under the City Council's direction the City Traffic Commission considered the relocation of the bike route and implementation of time limit parking on Cambridge St. The Commission, based on staff recommendations and public input,decided that the bike lane is operating at an acceptable level of safety and convenience under the existing configuration, and that the installation of time limit parking would not be in the best interest of the area businesses or residents.FISCAL IMP ACT: None.NOTE: Mayor pro tem Slater abstained due to a property interest on the block. MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Mayor Coontz, Spurgeon ABST AIN- Slater ABSENT - Alvarez Moved to deny the relocation of the existing bike route to an adjacent north-south street and deny the implementation of time limit parking restrictions on CITY COUNCIL MINUTES May 12, 1998 2. CONSENT CALENDAR (Continued) RESOLUTIONS 2.18 RESOLUTION NO. 8924 A Resolution of the City Council of the City of Orange adopting a policy concerning the City's participation in Friend-of-the-Court briefs. (C2500. B)ACTION: Approved.2.19 RESOLUTION NO. 8925 A Resolution of the City Council of the City of Orange summarily vacating a portion of Sycamore Avenue approximately 100 Feet east of GlassellStreet. S4000.S. 4)ACTION: Approved.2.20 RESOLUTION NO. 8926 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 978-15; SP-3215;Construction Systems; Fashion Park Screen Wall. ( A2100.0 AGR-2940)ACTION: Approved.2.21 RESOLUTION NO. 8929 A Resolution of the City Council of the City of Orange authorizing the temporary closure of Center and Grand Streets for the Civic Center Heating Ventilating and Air-Conditioning Systems Retrofit Projecton May 15, 1998. (S4000.S.4)ACTION: Approved.2.22 RESOLUTION NO. 8931 A Resolution of the City Council of the City of Orange expressing appreciation to Jere P.Murphy of the Community Development Department for more than twenty five years of loyal and dedicated service. (C2500.G)ACTION: Approved.2.23 RESOLUTION NO. 8923 A Resolution of the City Council of the City of Orange renaming Handy Creek Road north of Canyon ViewAve. to Aspen Street. ( S4000.S. CITY COUNCIL MINUTES May 12,1998 2. CONSENT CALENDAR (Continued) 2.24 RESOLUTION NO. 8927 A Resolution of the City Council of the City of Orange expressing appreciation to Georgia Minklein of the Orange Fire Department and commending her for more than 17 years ofloyal and dedicated service. (C2500.H) ACTION: Approved. SPECIAL EVENTS 2.25 Request for temporary suspension of permit parking restrictions within Permit Parking 'Area A' (downtown area) for a special event. (S4000.S.3.1.2) SUMMARY: Chapman University is requesting parking relief for their annual Baccalaureate and Commencement Ceremonies to be held at their campus on May 23rd, and May 24th, 1998. Additionally, closure of Walnut Ave. between Orange St. and Center St. is requested on Sunday, May 24th, between the hours of 9:00 a.m. and 11 :00 a.m., and 3:00 p.m. and 5:30 p.m. This request has been approved in prior years. ACTION: Approved the request of Chapman University and suspended the permit parking restrictions 'Area A' on Saturday - May 23"\ 1998 and Sunday - May 24th, 1998.FISCAL IMPACT: None.RESOLUTION NO. 8921 A Resolution of the City Council of the City of Orange authorizing the temporary closure of Walnut Ave. between Orange St. and Center St. for a special event on Sunday, May 24, 1998. ACTION: Approved. WAIVER OF FEES 2.26 Request from the Orange County Fire Authority to waive Transportation Permit fees for oversize loads. (C2500.M.20)SUMMARY: The Orange County Fire Authority is requesting the City Council waive the annual Transportation Permit fees for the movement of their heavy equipment throughout the City. This request is based upon the public benefit received from Authority mutual aid responses to wild land Fires.ACTION: Waived the annual Transportation Permit fees for the Orange County Fire Authority.FISCAL IMPACT: Loss of $270.00 annually to the City.PAGE 10 CITY COUNCIL MINUTES May 12, 1998 2. CONSENT CALENDAR (Continued) MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Item Nos. 2.3, 2.6 and 2.17 were removed and heard separately. Mayor pro tem Slater abstained on Item 2. 3 (April 21, 1998 Minutes) and 2.17. Councilman Murphy abstained on Item No. 2. 6. The remainder of the Consent Calendar was approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS Tape 500 5.1 Reappoint Linda Zehner to the Community Development Block Grant Committee,term to expire April 30, 2000. ( ORI800.0.8.3)MOTION - Murphy SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to approve the reappointment.5.2 The Investment Oversight Committee Quarterly Report for the Quarter Ending March 31, 1998. (ORI800.0.27.16)The City Treasurer presented the report.MOTION - MayorCoontz SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to receive and file the report.6. REPORTS FROM CITY MANAGER - None PAGE 11 CITY COUNCIL MINUTES May 12,1998 7.ADMINISTRATIVE REPORTS Tape 561 7.1 Report from the City Attorney and City Clerk on the proposed Agenda format. C2500.D.3) The City Attorney presented the proposed changes to the agenda format, which are being recommended in order to provide a break between the 4:30 p.m. and 7:00 p.m. sessions. Mayor Coontz expressed concern with the format of the Public Hearing process, suggesting that Council comments and questions be heard prior to the Public Comments as it provides Council the opportunity to ask questions. There is the question of mastering the agenda and the way things are scheduled and whether there should be a third meeting. Councilman Murphy suggested that Public Comments be heard at the beginning of the 7:00 p.m. session, prior to the public hearings. Public comments at the 4:30 p.m. session only could put undue constraints on people that work being given the opportunity to speak. He expressed support of a third meeting on an as-needed basis only.Mayor pro tem Slater expressed concern with the Public Comment portion of the agenda and clarified there is only one meeting with a recess in the middle. He spoke in favor of having Public Comments at the beginning of the 4:30 p.m. and the 7:00 p.m. session.Councilman Spurgeon expressed support of having Public Comments prior to the 7:00 p. m.session public hearings and would support a third meeting on an as-needed basis only.Mayor Coontz indicated Ordinance No. 18-94, approved by the City Council on August 23,1994, states that the meeting "continue until no later than 10 p.m.; provided, however, that the City Council may extend such hour of adjournment by a majority vote." The City Council can exercise that option.The City Attorney explained additional meetings can be scheduled by the City Council by calling for a Special Meeting. The City Manager added that additional meetings can be set either by a special or an adjourned meeting. The City Clerk explained traditionally the 7:00 p.m. session has been for public hearings.Barbara DeNiro, (address on file), spoke in support of the Public Comment section being held prior to the 7:00 p.m. session, ifthere is to be only one.Carole Walters, (address on file), spoke in support of two Public Comment sections and commented on the role of the City Council.The City Attorney will draft a Resolution changing the agenda format as recommended by Council. MOTION -Mayor Coontz SECOND -Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez PAGE CITY COUNCIL MINUTES May 12,1998 7. ADMINISTRATIVE REPORTS (Continued) Moved to accept recommendations; move the invocation and the Public Comments to the beginning of the 4:30 agenda; add Public Comments at the beginning of the 7:00 p.m. Session; change the order of the agenda for Public Hearings to include Staff Report, Open Public Hearing, Applicant Report, Council Comments and Questions, Public Comment, Close Public Hearing, and Council Action; and acknowledge meetings can be continued if additional work needs to be done on a subject or an agen~a item needs to be heard at a more timely time of the month. 7.2 Request by the City Attorney for the City Council to recast its votes on the Quadrant Plan, the Conceptual Plan for the Plaza Park and Old Towne District Street Lighting Master Plan to remove the impact of a potential conflict of interest. a. Quadrant Plan and Conceptual Plan for the Plaza Park NOTE: See further discussion of this item in Council Minutes of April 28 and May 26,1998 Tape 1239 The City Attorney reported the reason for bringing this item back to Council, and this has been with the concurrence of Councilman Alvarez, is that in discussions with himself and the FPPC, Councilman Alvarez determined that he should not have voted on two projects that were before the Council at the last public meeting. Under the Brown Act, since there was already a public meeting and public hearing on this matter, and it was before the body, there is no requirement to have an additional public hearing or repeat what was already done. He indicated the only action Council is being ask to take is to cast their vote on the project. A possible ramification from a vote in which a Councilmember had a potential conflict, or if a conflict is found, is that the court could void the action. By recasting votes, a clear message would be sent to the court, if it ever should get that far, that the Council would have acted this way without the participation of the Councilmember. He noted that all of this will come back to the Council for approval during the bid process. COUNCIL COMMENTS Mayor Coontz asked the City Attorney to explain what it is that the City Council, as elected members of the Council, must follow by State law? Whose responsibility is it to make the decision that they have a conflict of interest? The City Attorney explained the provision which addresses the issue for Councilman Alvarez is if a project is within 300 feet of property you own, you have to abstain unless it will not have any foreseeable financial affect upon your property. Based upon his discussion with Councilman Alvarez, after the meeting, Councilman Alvarez determined that he wanted to abstain. The City Attorney apprises the Councilmembers of what the rules are and ultimately it is up to the individual Councilmember to make that decision. Councilman Spurgeon commented he has been on Council for eight years and he cannot ever remember having to revote because of a tainted vote before or a vote that was illegal and that he was not real clear on that. He said that sitting next to Councilman Alvarez he reminded him of the fact, and said "aren't you going to disqualify yourself," as the hearing began. Councilman Alvarez said no. Councilman Spurgeon asked if Councilman Alvarez had conversations with the City Attorney or his staff prior to the hearing? Who contacted the Fair Political Practices Commission? PAGE 13 CITY COUNCIL MINUTES May 12,1998 7. ADMINISTRATIVE REPORTS (Continued) The City Attorney responded the communication he has with Councilmembers is subject to attorney-client privilege. It would be his preference that if the majority of Council wanted him to answer that question, that Councilman Alvarez be present. If it is the direction of Council to answer that question, he would request that it be put off until the next meeting. The item could be placed on the agenda. All Councilmembers are entitled to know any conflict of interest advice that may have been given to other Councilmembers. He indicated he could tell Council individually and privately what advice was given. Due to the attorney-client privilege, he has a professional responsibility not to disclose confidential communications. Councilman Alvarez contacted the FPPC on his own.Mayor Coontz asked for what purpose the FPPC was contacted? It was her understanding this is a violation of State law. The City Attorney said he and Councilman Alvarez had a discussion afterward about this issue and he believed Councilman Alvarez wanted to contact the FPPC to see if they agreed with the recommendations that he had made. The City Attorney explained this is a conflict of interest issue.Councilman Murphy commented that seven speakers cards have been submitted. He is not comfortable with the items being discussed unless the consultant is present and both sides of the issue can be discussed.The Director of Community/Library Services said the Plan is to start this project after the Street Fair, which allows them time to make any necessary adjustments.Mayor pro tem Slater commented he spoke with the consultant, Mr. Cathcart, who confirmed the plan is to commence the project after the Street Fair. He indicated he would have been in favor of proceeding with Item No. 7.2a on the agenda. However, since the Plaza is so important to the community, he concurs with the two-week continuance and giving the opportunity for additional public input.At the request of Councilman Alvarez, the City Attorney read his letter into the record:Dave,Since April 28th I have been researching the possibility that I may have erred in voting during the Public Hearings. Having reviewed the material you provided, I called the FPPC and my personal attorney to discuss this situation with them. They reminded me that my statement of economic interest has been a complicated one from the very beginning. Having now gained some new information on the matter of my potential conflict, I feel it's necessary to correct the public record.Since I will be on vacation for the next council meeting, I need you to do the CITY COUNCIL MINUTES May 12, 1998 7. ADMINISTRATIVE REPORTS (Continued) Place the Plaza renovations and master plan oflighting on the agenda for a new vote of the City Council. We believe that it will not be necessary to open it to a public hearing or to hear any testimony. The vote is simply to correct the public record, so I can correct my vote to show an abstention due to my ownership interests in real property and my need to disclose the nature of any potential conflicts. And finally, I want you to disclose this letter to the public, so that everyone will understand that I want the public record to be correct and that I am working hard to insure the public that I hold myself accountable. Councilman Mike Alvarez" (Letter on file in the City Clerk's Office) Barbara DeNiro, (address on file), indicated she will address her questions under Oral Presentations. Janine McCormick, 240 N. California Street, recommended revisiting the issue. Carole Walters, (address on file), commented she admires Councilman Alvarez for checking with his attorney and the FPPC relative to his potential conflict of interest. MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to continue Item No. 7.2a to May 26, 1998 with the City Clerk to notify the consultant and everyone who submitted a speaker card.7.2 b. Old Towne District Street Lighting Master Plan (C2300.l)Tape 2171 MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to make the finding that this project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 ofthe State CEQA Guidelines MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez PAGE 15 CITY COUNCIL MINUTES May 12, 1998 7. ADMINISTRATIVE REPORTS (Continued) Moved to approve the acorn head design theme. MOTION - Slater SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to approve the four proposed street lights and drop the industrial light; 2) include the mile square in the boundary to include the Nutwood Tract; and 3) the emblem be adopted but not painted; and 4) approve the Master Lighting Plan for the Old Towne Historic District.Warren Euchler, 241 Cleveland, referred to a newspaper article and expressed concern with monies being spent on the Plaza renovation and said the businesses in the Plaza are not conducive to a pleasant evening walk. The City Manager explained the article is misleading.The $250,000 issue is related to a Capital Improvement Project for the Plaza Park which will be in next year's budget. A public hearing was held on April 28th relating to the other expenditure,which will be agendized for May 26th.Mayor Coontz referred Mr. Euchler to the Director of Community Development to discuss his issues of concern.7. 3 Report from the Finance Director concerning refunding outstanding bonds for Assessment District No. 86- 1 (East Orange). (A2100.0 AGR-3030; AGR-3031; AGR-3032) The Finance Director presented the report. The proceeds from the original bonds were used to construct the infrastructure that completed the Santiago Hills Development in East Orange. Mayor pro tem Slater asked if the monthly assessment will go down or the length of the bond issue will shorten? The Finance Director responded the assessments put on the annual tax bill will be significantly reduced. If the homeowner pays on a monthly basis for taxes along with their mortgage payment, it would be on a monthly basis. Mayor Coontz commented the development was unusual for the City as it included a Mello Roos, which is the only Mello Roos in the City of Orange. RESOLUTION NO. 8930 A Resolution of the City Council of the City of Orange declaring its intention to refund the outstanding bonds of Assessment District No. 86-1 (East Orange); to levy reassessments as security for the refunding bonds; to continue the lien of the original assessments on certain parcels of property in the assessment district, and to employ bond counsel, disclosure counsel and financial advisor.PAGE CITY COUNCIL MINUTES May 12, 1998 7. ADMINISTRATIVE REPORTS (Continued) MOTION - Murphy SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved that Resolution No. 8930 as introduced by adopted and same was passed and adopted by the preceding vote.8. LEGAL AFFAIRS Tape 2304 8.1 City of Orange Uniform Bail Schedule (A2500.0)SUMMARY: The proposed Uniform Bail Schedule is a schedule utilized by the court to impose bail amounts, mandatory appearances and penalty assessments.FISCAL IMP ACT: The percentage of reimbursable revenue will increase from bail forfeiture and penalty collection by the Municipal Court due to the extent of increases in bail of some existing sections and other sections being added to the revised Uniform Bail Schedule.MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to approve the revised Uniform Bail Schedule and instruct the City Attorney to submit the Bail Schedule to the Orange County Municipal Court, Central District, for approval by the presiding Judge.8.2 ORDINANCE NO. 7-98 An Ordinance of the City Council of the City of Orange adding Chapter 12.18 of the Orange Municipal Code, Outdoor Dining on Public Walkways. ( A2500.0)MOTION -Murphy SECOND -Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved that Ordinance No. 7-98 be read by title only and same was approved and adopted by the preceding vote.8.3 ORDINANCE NO. 8-98 An Ordinance of the City Council of the City of Orange amending Chapter 17.34 of the Orange Municipal Code relatingto in-lieu parking fees in the Downtown Plaza District. (A2500.0)Discussion: Barbara DeNiro, (address on file), said she will not discuss this, but will write a letter to each Councilmember and wants an answer in writing.PAGE 17 CITY COUNCIL MINUTES May 12, 1998 8. LEGAL AFFAIRS (Continued) MOTION - Spurgeon SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved that Ordinance No. 8-98 be read by title only and same was approved and adopted by the preceding vote.9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS Don Ebrite, 18131 Lincoln Street, Villa Park, representing Villa Park Homeowners, expressed concern with alternatives proposed to address excessive traffic volume in the area of Vita Drive and Francisco Drive in the southeast portion of Villa Park. It is their opinion the alternatives will severely impact Villa Park to Orange and Orange to Villa Park traffic. Council was asked to voice concern to the Villa Park City Council before their May 26th meeting. (Letter on file in the City Clerk's office - R-3500.0)Carole Walters, (address on file), expressed concern for her life because of statements overheard at the Police Department. Ms. Walters demanded a meeting with the City Manager, Mayor pro tem Slater and Councilman Murphy. She also spoke regarding former Chief Robertson and Lieutenant Tunstall.The City Manager responded he has not received a request from Ms. Walters to have a meeting,but would be happy to meet with her and Council to clarify some of these issues. Ms. Walters was told that such comments were not terrorists threats that could be investigated. Chief Richards is looking into this issue. The City does not tolerate threats from anyone. Employees have been terminated and will continue to be disciplined for such comments or threats against anyone. No substantiation has been found to any complaint that has been brought forward to this date. Mayor pro tem Slater and Councilman Murphy indicated they would be happy to meet with Ms. Walters. Mayor Coontz commented a form is available to file complaints against the Police Department.Barbara DeNiro, (address on file), spoke regarding a proposal made by Ken Hawkins of Super Sports to OUSD for an after school sports program at various schools. Will there be a complex with these added proposed programs? Are we asking school facilities and surrounding neighborhoods to accept unreasonable interruptions of quality oflife in those areas? Is there a conflict by adding these new programs at our school facilities? Mayor Coontz responded there needs to be some communication between the City and OUSD. It is not known if the proposal was just a presentation or if the OUSD is truly considering those activities.Norm Phillips, 348 Redwood, commented on the Library renovation, former Police Chief Robertson, Lieutenant Ed Tunstall, and extension of the City Manager's contract.PAGE 18 CITY COUNCIL MINUTES May 12, 1998 10. ORAL PRESENTATIONS (Continued) Mara Brandman, 7319 Equitation Way, commented she heard that crime is up and on the rise, i.e. graffiti, gang activity, and school vandalism. She expressed concern that the City Manager's contract was renewed. Mayor Coontz responded crime reports were addressed by the Police Chief at the last Council meeting and suggested Ms. Brandman talk to the Acting Police Chief regarding her concerns. 11. RECESS URGENT ITEM: The City Attorney requested the following item be added to the Closed Session: 1) City of Orange vs. KPMG Peat Marwick MOTION SECOND AYES ABSENT Spurgeon Mayor Coontz Murphy, Slater, Mayor Coontz, Spurgeon Alvarez Moved to add the item to Closed Session as the need to take action arose after the posting of the agenda and there is a need to take immediate action.The City Council recessed at 6:19 p.m. to a Closed Session for the following purpose(s):a. Conference with Legal Counsel- anticipated litigation.Significant exposure to litigation pursuant to Government Code Section 54956.9(b) (two potential cases). Contract with ORRS b. Conference with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation; Kobzoff v. HarboIjucla Medical Center, California Supreme Court Case No. S066874 Amicus Request San Bernardino Public Employees Assoc. v. City of Fontana San Bernardino Superior Court Case No. SCV 36883 - Amicus Request c. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiator: Personnel Director Steven Pham; Employee Organization: Orange City Firefighters d. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session.PAGE 19 CITY COUNCIL MINUTES May 12, 1998 7:00 P.M. SESSION 12.1 INVOCATION Angie Atwood, Vice President, Orange Chamber of Commerce 12.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Mayor Coontz 12.3 ANNOUNCEMENTS A presentation was made by Chuck Burwell, President of the Orange Chamber of Commerce, sharing their new brochure which will help promote the City. Signs will also be placed at four strategic locations off the 57 Freeway which direct individuals to the City and to the Visitors Information Bureau at the Chamber. (C2100.0) John Silverman announced the Gogh Van Orange event will be held on Saturday, May 16th from 11 :00 a.m. to 7 :00 p.m. and Sunday, May 17th from 11 :00 a.m. to 6:00 p.m. 12.4 INTRODUCTIONS - None 12. 5 PROCLAMATIONS - None 12.6 PRESENTATIONS Resolution No. 8927 was presented to Georgia Minklein for 17 years ofloyal and dedicated service. 13.PUBLIC HEARINGS Tape 3700 13.1 APPEAL NO. 442, CONDITIONAL USE PERMIT, 2195-97, RALPH ZEHNER:The public hearing on petition by Ralph Zehner to appeal the decision of the Planning Commission on January 5, 1998 denying Conditional Use Permit 2195-97 which would allow the construction of a structure in excess of 1 Y'2 stories in Old Towne, required by OMC 17.14.070(y) and Old Towne Design Standards Chapter 5.B.2.b. and Mitigated Negative Declaration 1540-97 was continued from March 10, 1998, and April 14, 1998 to this time.The property is located at 630 East Culver Avenue. NOTE: Mitigated Negative Declaration 1540-97 was prepared to evaluate the environmental impacts of this project.THE APPELLANT STATES THE FOLLOWING REASONS FOR THE APPEAL: "PC change of requirements once again. The project was redesigned, meeting all State, City codes,Old Town Standards. The PC could not be more specific, so I request that this move on."NOTE: The appellant has requested the public hearing be continued to June 9, 1998. CITY COUNCIL MINUTES May 12,1998 13. PUBLIC HEARINGS (Continued) The Director of Community Development read the appellant's letter into the record: "Mayor Coontz and Council Members: Upon advisement of legal counsel, we are requesting a delay of the public hearing on the project at 630 East Culver Avenue until June 9, 1998. This request is to ensure that the full Council is in attendance due to the Mayl2, 1998 vacation of Councilman Alvarez. We thank you for your time and effort in this manner. Ralph and Linda Zehner." MOTION - Murphy SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSENT - Alvarez Moved to continue to June 9, 1998.13.2 MILLS ACT PROGRAM:The public hearing to consider the adoption of the Mills Act, which is a program that will authorize the City to enter into future Historic Property Preservation Agreements with individual property owners was continued from April 28, 1998 to this time. All such agreements will be on a voluntary basis, initiated by request of a property owner. By adopting the Mills Act, the City will be able to assist property owners in obtaining tax relief, in exchange for their guarantee to preserve historic properties. This action is categorically exempt from the provisions of the California Environmental Quality Act ( CEQA) pursuant to Section 15308 of the State CEQA Guidelines.NOTE: Mayor pro tem Slater announced he is regretful, but in accordance with State law, he has to abstain from any discussion or from voting on this item, and stepped down from the dais.The Director of Community Development reported the Mills Act is a piece of State legislation adopted by the legislature in 1976 as a tax incentive for historic preservation. The Act allows voluntary agreements between a local jurisdiction and owners of historic property. The agreements offer a property tax reduction using an established formula which is a part of the Mills Act. The City has no ability to change that formula; it is set within the agreement. The public benefit obtained includes preservation of historic structures and neighborhoods, and improvements of the historic resources within the City, consistent with the Old Towne Design Guidelines. The property tax savings can be substantial depending upon the individual circumstances.If adopted, the agreements last for a minimum of 10 years. At each anniversary, the agreement is automatically extended one year unless a Notice of Non-Renewal is filed. These contracts are commonly known as evergreen contracts. The tax savings for the individual equals a tax loss for government agencies. The annual property tax loss to the City, depending upon the number of contracts entered into, would range between $7,000 - $21,000 a year. It is unknown how many agreements would be requested. There are approximately 800-900 eligible historic properties within the City. It is estimated that approximately 10% of the eligible properties would request to take advantage of the program. To contain the tax loss, some cities have limited the number of agreements to exist within their jurisdiction. The agreements address what is required of the PAGE 21 CITY COUNCIL MINUTES May 12, 1998 13. PUBLIC HEARINGS (Continued) owner to improve the historic property. With the initial application request, the owner is to include a list of property owner improvements along with their estimated costs and approximate times in which they would be completed. The agreement includes a requirement for a five year review to insure progress and to update the improvement list. The improvement list with the initial application would be intended for an approximate 10 year period of time. As the agreements can be extended for longer periods of time, they need to be updated to make certain that there is a public benefit being created in their extension. If this program is adopted, each agreement will require Council action. Annual status reports will be provided by the owner. The fee with the initial application is estimated to be $450, with an annual inspection fee of approximately $35. The fees would cover the basic staff cost to administer the program. It is voluntary for the City to enter in the Mills Act program. The local jurisdiction is responsible for administering the program. COUNCIL COMMENTS MA YOR COONTZ Mayor Coontz asked what affect the tax would have on the Orange Unified School District ODSD)? Will OUSD know they will experience a tax reduction? The Director of Community Development responded the tax loss to OUSD would be more substantial than to the City. At this point, they are not aware of the program. Concern was expressed that a property owner may commit to the program but not achieve the list of improvements. The Director of Community Development explained every five years the City would review the contract to insure the items on the list are being completed. Items could be added as needed to make sure it is consistent with being extended the additional period of time. If an individual did not complete the work which should have been done in the initial five years, the City could file a Notice of Non-Renewal and end the contract. If during the five year period of time, the property owner let the property deteriorate so that a nuisance existed and was not consistent with Old Towne Design Standards, or the basic maintenance standards included, they could be found in breach of the contract. After a public hearing, the contract could be terminated.Mayor Coontz said that criteria should be established for basic structural categories., i.e. roof,foundation, electrical wiring, termites, etc. The Director of Community Development responded a priority list of types of systems within the structure that would be given priority consideration could be included in the procedures portion of the program.Concern was expressed that the property owner carry insurance coverage. The City Attorney indicated it is recommended the City not require insurance naming the City as an additional insured or indemnity language, agreeing the homeowner should be required to carry homeowner's insurance. He noted that once the City enters into these contracts, any attempt by the City to terminate the contract could result in litigation. The Director of Community Development indicated he has not heard that litigation has been a problem in other cities.PAGE CITY COUNCIL MINUTES May 12, 1998 13. PUBLIC HEARINGS (Continued) COUNCILMAN MURPHY Councilman Murphy asked what discretion the Council would have on each individual request? Why shouldn't business properties be included in the program, as well as the residential and office professional? Does the Act preclude business properties? Would the owner of a residential rental property have the benefit ofthe tax break also? The Director of Community Development explained Council would review the list of improvements and certify they create a public benefit. The program is aimed principally at single-family residentially occupied structures. There are other tax incentive tools available to commercial or non-residential uses, and apartment residential properties. The Mills Act does not exclude any group of property owners; it was structured this way to limit the number of contracts which might be entered into. Property that is single-family residentially occupied, either owner or tenant, would qualify for the program.COUNCILMAN SPURGEON Councilman Spurgeon expressed concern with the amount of agreements that would need Council approval. The Director of Community Development said the proposed agreements would likely be listed on the agenda under Administrative Reports or on the Consent Calendar.There is no requirement that there be a noticed public hearing.Concern was expressed with the amount of administrative involvement that may be needed for the program. He felt the program may be more popular in the City of Orange, with the demographics of Old Towne and the interest and activity ofthe people involved. The Director of Community Development responded the administration of the program would be handled through the Planning Division of the Community Development Department. It is difficult to estimate the burden it might place on existing staff, as it is unknown how many applications will need to be processed and in what period of time.The Director of Community Development confirmed to Councilman Spurgeon that he could not benefit from the Mills Act Program. Within the program, use is allowed Citywide for individually designated historic structures listed on the National Register of Historic Places, the California Register of Historic Resources, the California Register of Historic Landmarks, or the City of Orange Historic Register. Councilman Spurgeon indicated his home is listed only on the Aegis Report. The City Attorney added the key issue was whether Councilman Spurgeon's property could benefit from the program. Since the answer is no, there would not be a conflict.MAYOR COONTZ OPENED THE PUBLIC HEARING.Barbara DeNiro, (address on file), thanked Mayor pro tem Slater for stepping down. The program seems like preferential perks for friends or favoritism to a certain area of the City. Who approves the application or upholds the criteria of the applicants and the procedures? Does the tax break apply to rentals or owner occupied properties? Concern was expressed for revenue loss to the schools. The Director of Community Development responded the program is aimed at single-family occupied structures, regardless of what zone they CITY COUNCIL MINUTES May 12,1998 13. PUBLIC HEARINGS (Continued) Carole Walters, (address on file), asked if individuals on the historic listing now can get a tax break without this program being approved? Everyone should be able to get a tax break. Concern was expressed for the impact on OUSD. More study needs to be done. SPEAKING IN FAVOR: Fred Gillett, 205 E. Palmyra, looks forward to benefit of receiving tax monies back. Restoring homes to historic quality is expensive. He thanked Council for their reconsideration of the insurance concern. The tax revenue loss to the City is not greatly significant, as the revenue will come back to the City through fees paid. He recommended there not be a restriction on the number of participants. Joan Crawford, 394 S. Orange, asked Council to support the implementation of the Mills Act, which will allow her and her neighbors to recoup a portion of the funds they have spent on renovating and updating their historic homes. The Mills Act will greatly improve the understanding and the implementation of the Old Towne Design Standards, and is good for Orange and its historic resources. Any tax loss revenue is insignificant. Ms. Crawford requested Council: 1) approve the Mills Act without limiting the number of participants; 2) give consideration to those who have already completed major work and for those to do the work themselves; 3) the indemnity of the City clause include an additional insured or a Hold Harmless Agreement; and 4) consideration be given to a more realistic fee than $450. She doesn't anticipate broken contracts or litigation being a serious problem, and thanked staff for their help and cooperation in bringing the program to the Council. Mary Evans, 221 N. Pine Street, spoke in support of the program. She read from information received from Sacramento regarding the Mills Act, noting benefits of the Mills Act. MAYOR COONTZ CLOSED THE PUBLIC HEARING. COUNCIL COMMENTS Councilman Murphy asked if past work would be given consideration prior to an application being approved? It is his understanding that all applications will be for work not yet accomplished. It was suggested that the program be based on work yet to be accomplished. The Director of Community Development responded the City Attorney would need to get involved in this question. Concern was expressed relative to the issue of what historic buildings or resources in the City would be eligible for the program and what the ramifications are. What would the issues be if everyone had the same eligibility? He expressed discomfort that someone with an historic building that has to spend a lot of money to keep it restored would not be eligible. Discussion ensued and concern was expressed relative to commercial and office professional properties not being eligible unless they are occupied as a residential structure. The Director of Community Development explained that decision was based on an understanding that there were PAGE 24 CITY COUNCIL MINUTES May 12, 1998 13. PUBLIC HEARINGS (Continued) other tax incentives available to the other types of uses. Further information was requested on what tax incentives are available to the other types of uses? Further concern was expressed that the fee must cover the cost of administrating the program, noting that if additional costs are incurred to the City, they should be paid for by the applicant and not by the taxpayers at large. MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Mayor Coontz, Spurgeon ABSENT - Slater, Alvarez Moved to continue to July 28, 1998. Staff to address the following: 1) that the program be reviewed either upon receiving ten applications being approved or one year, whichever comes first; 2) the improvements be basic structural activities, i.e. foundation, roof, painting, termites,etc. and not peripheral improvements like landscaping and hardscape; 3) there be a requirement of homeowners insurance; 4) the fee schedule and a process map with discretionary items when the first application comes in; 5) what the whole process will entail; 6) an incentive program and what other incentive programs exist now; 7) a more definitive role on man hours required and how labor intensive the program will be for staff; and 8) any other questions and suggestions that the members of the City Council have made or expressed concern about.Mayor pro tem Slater returned to the dais and requested the following MINUTE ORDER as to why he could not participate: " I own and live in a home that would be conceivably eligible for this program as well as five other homes that could possibly be eligible as well. That is why I could not participate".14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Barbara DeNiro, ( address on file), expressed disappointment with the Chamber's new brochure.Carole Walters, (address on file), expressed concern with re-zoning of neighborhoods.Councilman Spurgeon requested an update on the Taft property that is supposed to be an assisted care facility. Bob Mickelson may be able to provide the information.16. ADJOURNMENT MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez The City Council adjourned at 8:30 p.m.dTH~CITY CLERK J COONTZ IA.YOR PAGE 25