08-25-1998 Council MinutesAPPROVED BY THE CITY COUNCIL ON SEPTEMBER 8, 1998
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF A REGULAR MEETING August 25, 1998
The City Council of the City of Orange, California convened on August 25, 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 INVOCATION
Adrienne Gladson, President, Orange Community Historical Society
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilman Spurgeon
1.3 ROLL CALL
PRESENT-Murphy, Slater, Mayor Coontz, Spurgeon,
Alvarez ABSENT-
None 1.4 PRESENTATIONS! ANNOUNCEMENTS!
PROCLAMATIONS a. Employee Recognition Service Awards were presented by the City Manager to
Basil Reyes, Tony Becerra, Geraldine Krencik, and Tom
Jordan.b. Resolution No. 8943 was presented to Alfred Remyn of the Public Works
Department commending him for more than 30 years of loyal and dedicated
service.c. Summer Reading Club Teen Volunteers were recognized by the Department
of Community & Library Services. The 89 teen volunteers gave a total of1,440
hours of service. Over 1,600 children participated in the Summer Reading Club
Program.d. Steve Satuloff, representing Target Stores, presented a $1,000 grant to the
Police Department which will be used for improvements to the interview room at the
Police
Department.e. A Proclamation was presented to Ron Beaulac, United States Youth Athletic
Network USY AN), in celebration of youth
month.Councilman Alvarez requested that Item No. 5.3 on the agenda be deleted and read
the following statement: "As an elected official, I felt that it was necessary to explain
my position concerning the lawsuit that was brought against me by the Mayor. However,
the City Attorney has advised me that this issue cannot be discussed here at a public
meeting.With that, I hope this issue is
closed."PAGE
CITY COUNCIL MINUTES August 25, 1998
1.4 PRESENTATIONS! ANNOUNCEMENTS! PROCLAMATIONS (Continued)
The Assistant City Attorney reminded the public that the same legal issues that prevent
discussion of this item during the Council meeting would also apply to discussion of
campaign issues from the podium as a public comment.
2.PUBLIC COMMENTS Tape 678
Carole Walters, (address on file), questioned the remodeling of City Hall. Why hasn't
she been contacted yet? Why didn't it go out to bid? The City Manager responded staff
is not yet prepared to present the report to Council.
Norm Phillips, 348 Redwood, requested clarification on the Assistant City Attorney's
statement regarding Councilman Alvarez's statement under announcements. The
Assistant City Attorney indicated that issues relating to a campaign are not within the
jurisdiction of the City Council and are not to be discussed at a public meeting. Mr.
Phillips further addressed questions regarding the cable franchise tax. The Assistant City
Attorney noted that members of the public may address any off-agenda items within
the subject jurisdiction of the Council. There will be an opportunity for the public to
speak regarding this issue under Item No. 8.1 on the agenda. (F1100.
0)3.CONSENT CALENDAR Tape
930 3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City
Council agenda of a regular meeting of August 25, 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 ofthe
City Clerk.3.2 Request Council Confirmation of warrant registers dated August 6,11 and
13, 1998.
ACTION:Approved.3.3 Request approval of City Council Minutes, Regular Meeting, August
11, 1998.
ACTION:Approved.3.4 Consideration to waive reading in full of all ordinances on
the Agenda.
ACTION:Approved.
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
AGREEMENTS
3.5 Request by Ruth McDaniel to connect their property to a City of Orange Sewer.
A2100.0 AGR-
3098)SUMMARY: This property, 15632 Cully Drive Alley, is in an unincorporated area
of Orange County. It is located east of Batavia St. and south of Fletcher Ave. There is
a City sewer mainline available on Cully Drive to connect this
property.ACTION: Approved agreement and authorized the Mayor and City Clerk to execute
on behalf of the
City.FISCAL IMPACT: None. All construction costs, connection fees and permit fees
will be at property owners expense. They will also pay a sewer charge as per Item 1 on
Page 2 of the Sewer
Agreement.3.6 Orange County Millennium - "Class of 2000" Project. (OC1300.0)
SUMMARY: The "Class of 2000" millennium project is a two-year
county-wide program that proposes to use the upcoming millennium as the platform for
marketing and promoting of local and
county events.ACTION: Authorized the City's participation in the "Class of 2000" - Orange
County Millennium project and approved the expenditure of$7,500 for the annual contribution
to be a member
city.FISCAL IMPACT: Adequate funds are available in the FY 1998-99 City
Manager's Office
budget (100-0201-426700-0000).3.7 Conrad & Associates, L. L. P. for financial audit
services. (A2100.0 AGR-2617.A)SUMMARY: The current three-year agreement
expires with the close of Fiscal Year 1998. Although not specifically stated
in the agreement, there was an understanding between the parties that the agreement would
be considered for renewal for an additional two years at the end of the initial
three-year term.
The Internal Audit Committee concurs with the recommendations.ACTION: Approved a two-
year agreement for the annual financial audit with Conrad &Associates, L. L. P. for Fiscal Years
1998-1999 in the amount of $38,000, and 1999-2000 in the amount of $40,
300; and authorized the Mayor and
City Clerk
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Adequate funds are available and budgeted in the following accounts
for Fiscal Year 1998-
1999.
100-
1231-
426300
290-
7025-
426300
291-
7026-
426300
293-
7024-426300
310-9640-
426300 910-
9800-426300
911-
9800-
426300
920-
9800-
426300
921-
9800-426300 931-
9800-426300
936-9800-
426300 General
Fund Assessment District
Assessment District Assessment
District CDBG Redevelopment
Housing Redevelopment Housing
Housing Redevelopment 24,
280.00 485.
00 650.00
485.
00 2,500.00 2,112.00 1,056.00 2,112.00
1,056.
00 1,056.00 2,208.00 APPROPRIATION 3.8 Appropriation for continuation of agreement with
Jeff Franzen, CPA. (A2100.0 AGR-2854.3)SUMMARY: The City
has taken a number of steps to protect its interests and to identify all possible
losses pertaining to the Orange Resource Recovery System (ORRS)investigation. As part of
these efforts, the City hired a forensic accountant, a specialist in fraud,
who has been working with the District Attorney for the
past year.ACTION: Appropriated $60,000 from unappropriated reserves in the Sanitation Fund
to Account No. 220-4031-426700 (Sanitation Fund- Police Detectives - Professional and
Consultant Services) to fund for the continuation of services provided by
Jeff
Franzen.FISCAL IMPACT: Adequate funds are available to fund the proposed $60,000 appropriation. The
City will seek reimbursement for these
costs from ORRS.BIDS 3.9 Bid No. 978-50 - Award contract
to Paving Contractors, Inc. for city-wide striping and pavement markings. (
A2100.0 AGR-3096)SUMMARY: Three bids were received for the city-wide contract
to provide traffic striping and pavement marking services. Paving Contractors, Inc. submitted the
lowest responsible bid of Schedule A (solvent-borne paint) in the amount of $90,350.00.
ACTION: Accepted the bid submitted by Paving
Contractors, Inc.
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
FISCAL IMP ACT: Funds were appropriated in the 1998-99 Budget utilizing
the Contractual Services Account No. 273-5032-427100 of the Gas
Tax Exchange funds.3.10 Bid No. 978-55 - Award contract to Burt C. Gentle Company, Inc.
for purchase and installation of book shelving - Main Library Renovation. (A2100.
0 AGR-3097)SUMMARY: Approval of the award of Bid No. 978-55 to
Burt C. Gentle Company,Inc., in the amount of$95,213.20 for the purchase and installation of
the book shelving as part
ofthe Main Library Renovation.ACTION: Awarded Bid No. 978-55 to Burt C. Gentle Company,
Inc., in the amount of 95,213.20 for the purchase and installation of the
book shelving; and authorized the Mayor and the City Clerk to execute the contract
on behalf of the City.FISCAL IMP ACT: Funds are budgeted for FY 1998-
99 in the following account: 500-7028-
481105-9900 (
Main Library Renovation): $98,400.00.FUND TRANSFERS 3.11 Proposalto
Expend Funds Collected for Library Donations. (C2500.l)SUMMARY: Donations from patrons are
collected over a period of time. When funds have reached a sufficient amount,
they are appropriated to an expenditure
account to purchase books, videos and CD's.ACTION: Approved the appropriation of $
4,149.15 in Patron Donations from Account
No. 100-0000-293900-
9986 to Account No. 100-2001-443101-9986 (Library Materials)to purchase
library books.FISCAL IMP ACT: The accounts where these funds currently reside are revenue
accounts. In order to expend these amounts on the materials for
which they were intended, they must be appropriated into
Library Materials expenditure accounts. This
transfer has no fiscal
impact on the overall budget.PERMIT PARKING AREA EXTENSION REQUEST REMOVED AND HEARD SEPARATELY)
3.12 Request to waive
application fee for expanding an existing permit parking area.S4000.S.3.1.2)SUMMARY:
This is a request by six homeowners on Everett PI. and Mayfair Ave. to waive
the $400 application fee adding a segment of Grand St. (from the terminus of
existing permit parking limit to Mayfair Ave.)
to the
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
Discussion: Cindy Groom, 303 E. Everett Place, spoke in support and thanked Council
for expediting her request.
Gary Meserve, (address on file), spoke in support. A fee waiver request was made earlier
this year for the 100 block of South Cambridge and was not granted. He feels the
decision is biased and asked that the $400 application fee be retroactively refunded.
The Public Works Director explained the current request is for a minor expansion of an
existing permit parking area. The request on South Cambridge was for a new permit
parking zone, which required a petition, circulation, notification, etc., that was
reimbursed by the application fee. This same type of expenditure is not incurred in the
process of expanding an existing zone.
MOTION- Spurgeon
SECOND- Murphy
AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION:
Waived the $400 application fee; directed staff to proceed with preparation of an
Ordinance modifying Permit Parking Area "A"; and an Ordinance be brought back to the
City Council for adoption.RESOLUTIONS
3.
13 RESOLUTION NO. 8990 A
Resolution of the City Council of the City of Orange approving the memorandum of understanding
between the City of Orange and the Orange City Fire Fighters, Inc. Local 2384
of the International Association of Fire Fighters, AFL-CIO concerning wages,
hours, and other conditions of employment for the period of March 1, 1998 through and
including February 28,2001 and repealing Resolution No. 8695 and amendments thereto
for said employees. (C2500.J.4.3)
ACTION: Approved.
REMOVED AND HEARD SEPARATELY)
3.14 RESOLUTION NO. 8992
A Resolution of the City Council of the City of Orange upholding the recommendation of
the Planning Commission of the City of Orange and approving the reclassification of
property situated on the southwest comer of Cypress Street and Maple Avenue, from
Santa Fe Depot Area Public Facilities Zone to Santa Fe Depot Area Commercial Zone.
Z1500.0 ZCG-
1190-97)Zone Change 1190-97 - Gary Mead (P.J.'s
Depot Express)
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
Discussion: Carole Walters, (address on file), addressed questions relating to adequate
parking. The Director of Community Development explained the approximate 400
square foot portion of the building to be used for retail use is satisfactory without the
need for additional parking.
MOTION - Murphy SECOND -
Spurgeon AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.3.
15 RESOLUTION
NO. 8994 A Resolution of
the City Council of the City of Orange upholding the recommendation of the Planning Commission
of the City of Orange and granting a variance to allow a waiver of additional parking
spaces required for the conversion of 480 square feet of industrial space to commercial
use and a waiver of the maximum height limit for a fence located in required yards upon
property located on the southwest comer of Cypress Street and Maple Avenue. (V1300.
0 V AR-2035-97)Variance
2035-97 - Gary Mead (P.J.'s Depot Express)ACTION:
Approved.3.
16 RESOLUTION NO. 8995 A
Resolution of the City Council of the City of Orange denying Appeal No. 441 and upholding
the decision of the Planning Commission of the City of Orange to deny a conditional
use permit to allow the off sale of beer and wine upon property located at 1100
West Chapman Avenue. (C3300.0 CUP-2194-
97)Appeal No. 441 - Conditional Use Permit 2194-97 - Mr. K's, Inc.
ACTION: Approved.
REMOVED AND HEARD SEPARATELY)
3.17 RESOLUTION NO. 8996
A Resolution of the City Council of the City of Orange amending and revising the
Historic Preservation Design Standards for Old Towne. (C2300.I)
PAGE 7
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
Discussion: Carole Walters, (address on file), asked why the boundaries were not
included on the State Register of Historic Places? The Director of Community
Development explained an application was made to the State and Federal government for
a historic district, which included areas outside of what the City had previously
designated as the mile square historic area.
MOTION - Slater SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.3.
18 RESOLUTION
NO. 8997 A Resolution of
the City Council of the City of Orange approving Lot Line Adjustment LL 98-1
adjusting lot lines of certain real property situated at 416 and 484 S. Esplanade Street in
the City of Orange, County of Orange, State of California, more particularly described in
Exhibits "A" and "B". (C2500.M.16.1 LLN-98-1)
ACTION: Approved.
3.19 RESOLUTION NO. 9000
A Resolution of the City Council of the City of Orange approving Lot Line Adjustment
LL 98-9 adjusting lot lines of certain real property situated at the northeast comer
of Main Street and Town & Country Road in the City of Orange, County of Orange, State
of California, more particularly described in Exhibits "A" and "B". (C2500.M.16.1
LLN-
98-9)
ACTION: Approved.REMOVED AND
HEARD SEPARATELY)3.20 RESOLUTION
NO. 9001 A Resolution of the City Council of the City of Orange supporting
the California Department of Transportation installation of signs on State Route 22
identifying the location of the Old Towne Orange HistoricDistrict. (
C2300.I)Mayor Coontz commented a signage application was made
through CalTrans approximately two years ago for all of the freeways. After a lengthy
process involving Senator John Lewis, Governor Pete Wilson, Assemblyman Bill Campbell, and
the new CalTrans Director, the signs will be mounted on the 22 Freeway below the
existing green sign reading "Chapman University, Next Right". The signs will have
a brown background with white lettering and read "Old
Towne Orange".
CITY COUNCIL MINUTES August 25, 1998
3. CONSENT CALENDAR (Continued)
Mayor pro tern Slater asked if the City had input on whether the sign would say "Old
Towne Orange" or "Old Towne Orange Historic District?" When can we expect the
signs to be installed? The Redevelopment Project Manager explained CalTrans tries to
limit the number of words and signage on the freeway, as they feel too much signage is
distracting to drivers. The signs should be installed in the next 30-60
days.Lisa Ackerman, 151 N. Glassell, on behalf of the Downtown Orange Business
and Professional Association, thanked Mayor Coontz, Victoria Cleary, Senator
Lewis,Assemblyman Campbell, and those involved with obtaining the
signage.MOTION - Mayor Coontz
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.
MOTION - Murphy
SECOND - Slater AYES -
Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez Item Nos. 3.12, 3.
14, 3.17, and 3.20 were removed and heard separately. The remainder of the Consent Calendar was
approved as recommended.END OF CONSENT CALENDAR 4.
REPORTS FROM MAYOR COONTZ
Tape 1404 4.1 Report from Mayor
Coontz on community input and the Request for Proposals RFP) for trash services.Mayor
Coontz reported that in
a recent meeting with the Apartment Owners' Association,questions were asked about the
Hilton, Farnkopf & Hobson report. They expressed interest in giving their input to the
RFP process. They also had some thoughts which will come forth in correspondence addressing changes or additions
they would like the City to consider. The City is negotiating with Hilton, Farnkopf &
Hobson to develop specifications for proposals for trash services. The Downtown Business Group
also spoke about special needs in the Plaza area regarding trash pick-up. The
Public Works Director will receive recommendations or input from other organizations. The Public
Works Director indicated it will take six months or more to go through the RFP process.
Harry Astor, 333 City
Blvd. West, representing ODS and ORRS, distributed copies of a response to the Hilton, Farnkopf &
Hobson report which was prepared by their accountant, Alder, Green,PAGE 9
CITY COUNCIL MINUTES August 25, 1998
4. REPORTS FROM MAYOR COONTZ (Continued)
and Hasson. The City Manager suggested Mr. Astor address this issue under Public Comments
at the 7:00 p.m. Session, as this agenda item does not address the RFP process.
Carole Walters, (address on file), President of Orange Taxpayer's Association, asked to be on the
committee and be notified of meetings. The City Manager encouraged Ms. Walters to provide
input to the Public Works Department so recommendations can be formulated for the Council.
Brent Sakamoto, P. O. Box 5046, Orange, commented he oversees a business in Orange and
Costa Mesa and expressed support for the RFP process.
MOTION - Mayor Coontz SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file.5.REPORTS FROM
COUNCILMEMBERS Tape 1648 5.1 Request
from Councilman Alvarez requesting permission on behalf of the Orange County Central Lions
Club to use the Bank of America parking lot for a fund raising event during the Orange
International Street Fair. In addition, direct the City Attorney to prepare a contract
between the City and the Orange County Central Lions Club for this event. (A2100.0
Councilman Alvarez reported
the Orange County Central Lions Club have used the Bank of America parking lot
as a fundraiser for the last 7 years. It was hoped that something could be worked out with
the Friends of the Library. It was noted that a lane needs to be provided for ATM access for
Bank of America.Jim Gunn, 15
Southwind, Alisa Viejo, representing the Board of Directors of the Orange County Central Lions Club,
commented that funds raised are put back into the community. They believe they still have
an arrangement with the Friends of the Library to donate part of the proceeds. He noted he has
a $2 million liability Certificate of Insurance from Lions International, naming the City of Orange
as insured. Orderly ingress and egress for the ATM will be maintained. The Lions Club has
been charging $5.00 per car, which has not been raised since they started. Lots held by other
charitable groups charge a comparable rate. He suggested this lot be established so that any group
could make application for its use.The City Manager
commented public service organizations are essential to the community.When this issue
came up before, the City Attorney advised that the City can grant this opportunity. The City
Council would have to approve and set the charges. The City would also PAGE 10
CITY COUNCIL MINUTES August 25, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
have to receive a fair market rate from the organization that proposed to lease it from the City.
The Council can consider waiving the rate if there is direct public benefit. If the parking lot is
used for a charitable fundraiser by charging for parking during the Street Fair, Council must
consider that there may be other non-profit organizations that could approach the City about
the use of this lot and/or other lots in the
future.The Assistant City Attorney summarized: 1) there would be a determination by Council that it
is necessary or convenient for the public that this be used as a public parking lot; 2) the
Council would, based on information from the Lions Club, determine what fee they are planning
to charge (part of Council's action is to set the fee); and 3) if approved, the Council would
authorize the City Attorney's office to prepare a lease or franchise
agreement.Mayor Coontz expressed concern that proposals presented from other organizations in the
past had been turned down on the basis that the City needs a certain number of public
parking facilities in the City during the Street Fair. Approval of this request could also set a
precedent.Since the Bank of America site will be used by the library, it seems a group established to
raise money for the library would take
preference.Jim Gunn responded they intended to split the proceeds with the library. However, the
library does not have the manpower. The Lions Club is committed to giving 20% of their proceeds
to the Friends of the Library. Approximately $3,000 is generated each
year.Arline Minor, 384 N. Shattuck, Member of Friends of the Library, commented when the
proposal was made to the Friends of the Library, they indicated they could not stay in the parking lot.
The book store will be operated by the Friends of the Library all day on Saturday. People do
need some free
parking.MOTION-
Spurgeon SECOND- Mayor
Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved to: 1) approve the request on a one-time only basis, until further policy can be
developed on the property; 2) that the necessary legal requirements be done in order to have the Lions
Club operate the parking lot this year and charge of $5.00 per car; and 3) the Lions Club give 20%
of their profits to the Friends ofthe
Library.5.2 Report from Councilman Alvarez on the findings of the Fair Political
Practices Commission report concerning the Plaza District
Renovation.Councilman Alvarez reported: "Some months ago, I had asked the City Council to bring back
for a second vote the improvements that were going to take place around the Park Plaza and
the surrounding comers. We had, through our City Attorney Dave DeBerry, requested that
three PAGE
CITY COUNCIL MINUTES August 25, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
questions be answered in terms of the discussion that had taken place. And the reason that I had
brought it back, Mayor, was on a couple of things. I think the memorandum that we received
definitely demonstrates that the conflict of interest issues are quite complicated. One of the
things that I found interesting was the burden of proof would fall on the FPPC on some issues if
they were seen as a material gain for a public official. However, they discussed in here the
benefits where there is no material gain that would violate what they call the one penny rule.
The reason why I am just bringing it up again is the fact that I know I had received some
criticism in having the Council come back and re-vote on it. Based on this report, I am glad
that both myself and City Attorney Dave DeBerry continued to pursue this. I think that, based on
this report, it shows that even though it was something that we had done that was unprecedented
in bringing it back, I am glad that we did, because this report supports that motion. That is
the reason why I wanted to clarify
that."Mayor Coontz: "Why were you glad that we voted
again?"Councilman Alvarez: "I was glad because in this report it spelled out quite clearly that in
the case of the three votes that we had, the burden of proof on (see, I don't want to go into this
that deep). For instance, the cutting down of the Pine trees. Basically, I think, had the report
shown that this was not a benefit to promote business in downtown Orange I could have voted on
it,because it would not have violated the one penny rule. The one penny rule meaning that I
would not have gained either positively or negatively from my business having the Pine trees
removed at that
point."Assistant City Attorney: "I'll just clarify just to harken back to one of the first things
you mentioned was that it was good because this shows how complicated these issues are. The
FPPC did not address in this letter any circumstances surrounding that particular vote, and
especially the Pine trees. So, I get very nervous to draw any kind of conclusion on any matter than wasn'
t submitted to them to specifically
answer."Mayor Coontz: "So you're saying the Pine tree question wasn't submitted to them. That was
a general
question?"Assistant City Attorney: "That's true. Right. And we have the exact questions that are set
forth at the very beginning of the letter. And those were the only questions that they addressed.
We did not ask them to draw a conclusion on the
vote."Councilman Spurgeon: "I think something that all of us go on around here, and I have, and it's
a formal legal, or informal, and it's called the one penny rule as mentioned earlier. And this is
a quote from the City Attorney, My recommendation is to abstain if you either own
property within 300 feet of a project, or a person who is of a source of income to you owns
property within 300 feet ofthe project. To me, that's real simple, and it's a real simple rule to go by.
And I think most of us have gone by that rule. The only thing is I think I asked you (
Councilman Alvarez) the last time we had discussed this, before you abstained the second round of
voting,PAGE
CITY COUNCIL MINUTES August 25, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
was did, in fact, you consult with any of our City Attorney staff prior to making the first vote.
And I believe you indicated to me that you had, that you discussed it with two of them and you
proceeded then to vote the first time. And then later, you decided to rescind your vote and ask
for another vote. I just think a general rule of thumb is you have to check with your own legal
staff. When in doubt, go with them. That would be my suggestion in the future of anything. If it
is 300 feet plus 10 yards, you know, I think I would take the extra measure and take a walk, so
there is no perception."
Councilman Alvarez: "To follow up on that Councilman Spurgeon, the discussion that we had
gone into on the one penny rule with Dave DeBerry was basically looking at it from a real
property aspect. So, we were looking at it in terms of, for one example, the change of the street
poles, how that impacted my net worth, so to speak, for a property if it was changed. And,
basically, we both agreed that it was tough to determine that and this report basically put the
onus in trying to have the burden of proof, not only on the FPPC to try to draw that conclusion,
but it also puts it on the official to show that this (unintelligible) hadn't been met. And if you
remember back then, I had talked about how, in order to meet this, that I would need to have an
appraiser tell me that to change the street lamps would not impact me either financially or
whether its negative or positive. The point I was trying to push here, basically, was the need not
to abstain simply because I'm within either 300 feet or the next level, which would be beyond
that. Or, to meet the threshold of a $1,000 gain. So, those were the issues that City Attorney
Dave DeBerry and I had worked on. And, basically, when we looked at this, we determined that
it boiled down to more of a benefit that was, as they put it, something that is presumed as a
material effect, as to one that is an actual. And, based on that, that it the reason why he had
recommended that I bring it back for a vote."
In response to Mayor Coontz, Councilman Alvarez responded: "The bottom line, Mayor, is I told
him to prove it to me. That I needed it proven, and basically said, in order to do that, we would
essentially have to order the staff to determine the effects of either taking trees down or changing
light poles. And, at that point, we thought it was basically a waste of time to have them do that.
But I wanted to at least push the envelope out a little bit to determine for me basically what the
boundaries were in abstaining. I didn't simply want to do it because of his recommendation, but
base it on something a little bit more solid."
Assistant City Attorney: "If there are further specific questions, it never hurts to present detailed
questions to the FPPC, if this might be a subject where we all sit up here and wonder what the
FPPC would say. Maybe it's a good idea to submit that question to the FPPC."
Councilman Alvarez: "I'm glad you brought that up. Because that was the reason why I am glad
this came back. Because we seem to vote so much on things that go on in Old Towne, that I
needed more of a clarification. With this document, I have it. So, I'm quite happy with it."
PAGE 13
CITY COUNCIL MINUTES August 25, 1998
5. REPORTS FROM COUNCILMEMBERS (Continued)
Carole Walters, (address on file), expressed support and concern for Councilman Alvarez. Who
sent the questions to the FPPC? Councilman Spurgeon responded the City Attorney sent the
questions to the FPPC.
Mara Brandman, 7319 Equitation Way, expressed concern that questions being sent to larger
organizations could cast a negative light on one particular person or several people. How does it
happen that questions go to the FPPC?
The City Manager responded the City Attorney wanted to inquire whether his rulings were
consistent with the opinion of the FPPC. The integrity of the office of the City Attorney and
City Manager's office stands for itself. Action will be taken as is thought to be prudent in the
best interest of the Council and the City as a whole. The questions to the FPPC were as follows:
Question 1: Should a lighting renovation plan be analyzed under Regulation 18702.3(a)(2) and
does the regulation apply whether or not such improvements have any financial affect?
Question 2: Do the comments in the attached minutes interpreting Regulation 18702.3(a)(1)
accurately portray how the 300 foot rule is applied?
Question 3: In an enforcement action, who carries the burden showing whether a materiality
threshold has or has not been reached of the official or the Commission?
Mayor Coontz noted the City Attorney's duty is to protect the City of Orange. The Assistant
City Attorney added that the City Attorney represents the City and Council in matters. No
formal action is needed to solicit the opinion of the FPPC.
Shirley Grindle, (address on file), commented she is active in monitoring campaigns and is very
involved with the FPPC. The City Attorney's office is not to be used by any candidate running
for political office to get legal opinions on campaign issues with respect to the State Political
Reform Act. This issue involved a potential conflict of interest which is part of the Political
Reform Act, but has nothing to do with a political campaign. If a conflict of interest provision of
the Act is violated, they are the one who will make that decision, which is made by somebody
filing a complaint. It was recommended that all Councilmembers take the City Attorney's advice
when advice is given on conflict of interest.
5.3 Report from Councilman Alvarez clarifying issues concerning Candidate's
Statement. (C2500.D)
MOTION - Alvarez SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to remove
this item from the agenda.PAGE 14
CITY COUNCIL MINUTES August 25, 1998
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS Tape 3247
6.1 Report from the Internal Audit Committee Meeting summarizing the July 23, 1998
Internal Audit Committee meeting. (OR1800.0.27.17)
The Internal Auditor presented the report and background information on the Committee
members. Each member of the Committee and Councilmember was presented with a copy of
potential audit areas in the City and the FY 1998-99 Audit Schedule and Work
Plan.MOTION-
Spurgeon SECOND- Mayor
Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved to receive and file.
7.ADMINISTRATIVE REPORTS Tape 3357
7.1 Treasurer's Report for the period ending July 31, 1998. (C2500.F)
The Finance Director presented the report.
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file.8.REPORTS FROM
CITY MANAGER Tape 3430 8.1 Report
on Cable TV Franchise Fees. (FI100.0)The Assistant to
the City Manager reported pursuant to Federal law, the City must allow cable operators access to
its streets and other public right of way to install cable television services. A cable operator must
obtain a franchise agreement, which establishes the regulations that are required allowing use
of the streets. The purpose of a franchise fee is to reimburse the City for the value of
the public property that is being used by a private enterprise to further the profit-making business and
for public costs to the City associated with existence of a public enterprise using City facilities.
The franchise fee is the only fee the City is allowed to receive as compensation. Cities are
prohibited by federal law from awarding an exclusive cable franchise.All cable operators
who request a cable franchise in the City must be granted a franchise.The franchise fee
is collected by the cable operators. The cable operators are given authority by the FCC who
oversees them. The FCC allows, but does not mandate, that cable operators pass the franchise fee
on to their customers. In response to Mayor Coontz, it was noted that other cities nationwide have
petitioned the FCC to ask that the fee not be allowed to be passed back to PAGE 15
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
the customers. However, a decision has not yet come through on this issue. In response to
Mayor pro tern Slater, it was noted that a survey done indicates that most cities charge 5%.
Norm Phillips, 348 Redwood, referred to a recent article in the Oran~e City News regarding
cable fees, commenting the fee is actually 5.26%. Where did the other .26% come from? Who
had the authority to put this on the bill? The Assistant to the City Manager explained the press
release was sent regarding a recent court decision that was passed by the FCC. The FCC has
allowed the cable operators to recoup their costs to their customers. The cable company charges
5.26%; the City receives 5%.
Carole Walters, (address on file), commented there should be a public hearing on any tax
imposed.
MOTION - Mayor Coontz SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file.8.2 Report
on stafrs monitoring of operations at Orange Resource Recovery Systems ORRS). (A2100.0
AGR-0119.F.15)The Director
of Public Works reported in June, 1997, two personnel were assigned to provide oversight at
the ODS and ORRS facilities who had not formerly been involved in the administration of
either of the contracts. Their basic responsibility was to observe activities that were occurring,
make observations, receive reports, and make comments they felt were appropriate in
terms of the controls that were in place at the site. This was done on a daily basis for approximately
four months. During that period of time, they did not observe any particular problems that
related to the contract issues. They did observe areas where improvements in operations efficiency
could be made. They reviewed reports of receipts and incoming tonnage that were
provided on a weekly basis.Subsequently, the
frequency of visits was reduced. During that time period, Hilton, Farnkopf, &Hobson was
actively doing research on the site in preparation of the report presented at the August 11,
1998 meeting. Concurrently, there was investigative activity on the part of the District Attorney
relative to their continuing efforts to investigate the fraud allegations. At present, the
site visits continue on a random and unannounced basis. The results of that activity indicate that
the operations are generally conducted in an effective fashion. There are still issues of adequate
documentation of the operation. The random visits will continue. It is anticipated this method
of contact and oversight will be in place as long as the City has contracts with ODS andORRS.PAGE
16
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
MOTION - Spurgeon SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive
and file.8.3 Report
regarding approval of contract with Sage Institute Incorporated, for analysis of OUSD School
Mitigation Fee Report. (A2100.0 AGR-3095)SUMMARY: The
Orange Unified School District (OUSD) commissioned a study prepared by David Taussig
and Associates regarding mitigation for school facilities. The City Manager recommends the
City hire a consultant to analyze the findings ofthe study and report conclusions to the
City, for appropriate action.FISCAL IMP
ACT: This contract would require the appropriation of unappropriated General Fund reserves
in the amount of$15,000.The Assistant
to the City Manager reported OUSD embarked upon a study and subsequently passed a
Resolution in March, 1998 regarding mitigation for the cost of residential development upon school
facilities. OUSD has asked the City to consider the impact, and as appropriate,impose subsequent
fees that would allow them to collect fees from developers who are doing residential development
in the City. Before the City Council could adopt any type of fee, the City would
need to conduct its own nexus study or adopt OUSD's study, the Taussig Study.Sage Institute
Incorporated is a consultant with experience in this area who can analyze the Taussig Study
and prepare information for Council's consideration regarding the appropriate steps required
before the Council could adopt any particular fee to mitigate this issue. The time frame for
the study would be 60-90 days for the work the consultant would be conducting.OUSD
may be called upon to provide additional information during the consultant's analysis, so the
60-90 day time frame is exclusive of any response from OUSD.
Councilman Spurgeon asked for an explanation as to why the City needs to pay $15,000 for a
consultant? Mayor pro tern Slater responded that he and Councilman Murphy currently serve on
the Cities-Schools Coordinating Committee. The school district has expressed a strong
interest in being able to work with the City in trying to resolve this issue. It shows good faith on
behalf of the City to be willing to make an effort to work with the school district. The City should
take a second look at the Taussig
Study.. Councilman Murphy concurred with Mayor pro
tern Slater's comment, indicating he is not comfortable with what he has seen and read so far.
He supports an independent consultant to determine what the basis of the analysis has been
and where there might be a difference of opinion on how to go about the
evaluation.PAGE
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
Mayor Coontz commented a similar activity with OUSD occurred in 1976 on their projections
for the future. Support was expressed for a consultant to analyze the Taussig Study. It was noted
that in the legislature there is a lot happening regarding school funding. The fee issue continues
to come up. It is hoped if there is anything definitive while this is going on, that it can be
brought back to Council and discussed.
Councilman Spurgeon asked if the law indicates that the City has to collect this fee? The
Assistant City Attorney responded the City is required to collect the statutory fee, which is set by
the legislature. There is also a discretionary additional fee if the City were to find additional
impacts that merited an additional fee. To this point, the City has not made any such finding.
The school district has with their Taussig Study. OUSD cannot require the City to charge for the
finding.
In response to Councilman Alvarez, the Assistant to the City Manager explained the school
district has already done a nexus study. The City will utilize the services of a consultant to
analyze those results. The Taussig Study is indicating a certain amount of growth and a certain
need for school facilities at a certain cost. The proposed consultant contract allows the City to
have an independent technical expert review that information. It is not to conduct the City's own
nexus study. If it is found that the premise for all of the projections is not accurate, it may be
necessary for the City to conduct its own nexus study, if the Council desires to address this issue
through the imposition of a fee. The City would be able to determine during the first task
whether more analysis is needed beyond the scope of this consultants contract. If this were the
case, the City Council could make a policy decision not to pursue it further.
The City Manager summarized that OUSD cannot understand why the City hasn't taken action
on some of their requests. If the City did not review this issue, it would be deferring a land use
authority to the school district.
Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, urged the Council to approve the
recommendation.
Mara Brandman, 7319 Equitation Way, urged Council to support OUSD.
Mayor Coontz commented the purpose of initiating the Cities-Schools Coordinating
Committee in 1994 was for better
communication.MOTION-
Slater SECOND- Mayor
Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved to appropriate $15,000 from unappropriated General Fund reserves to Account No. 100-
6021-426700 (Other Professional Services); and authorize the City Manager to execute
the contract on behalf ofthe
City.PAGE
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
8.4 Report providing answers to smoking enforcement questions. (H1100.0)
The City Manager presented the report.
MOTION- Murphy
SECOND- Spurgeon
AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved
to receive and file.NOTE:
THE CITY COUNCIL RECESSED AT 6:50 P.M. AND RECONVENED AT 7:10 P.M.8.
5 Report on selection process for Chief of Police. (C2500.K)Tape 4918 The
City Manager presented the report with options for Council's consideration. Whatever process
Council desires, it was suggested the four mandatory components outlined in the report be
considered as part of the process. In response to Mayor Coontz, he explained the traditional process
that is followed in selecting a high-profile department head.
Councilman Alvarez distributed a report to Council and the City Manager as an enhancement to
the City Manager's proposal and summarized his recommendations for the process. He indicated
that he supports Option 2 - The Open Forum Process of the staff report but tempered to respect the
confidentiality of the applicants. He would want the committee more involved than what is proposed
in the staff report. The Committee would have a final meeting to ensure to the public that
the finalists would fit the profile.In
response to Council's questions, Councilman Alvarez indicated confidentially would be protected
because they would not be participating on the traditional side of interviewing a Police Chief,
which would be done by the recruiter. The Committee would receive feedback from the community
and would then organize and prioritize the characteristics the public is looking for in a
Police Chief. The Committee would participate one last time as a follow-up to the suggestions
that the characteristics would be incorporated into the Police Chief. The recruiter would be
allowed to do his job under the City contract. Once the recruiters job is completed, the
Committee would come back for questions and answers to be sure in their minds and to assure
the public that the two finalists have more than met the profile of characteristics that they would
like to see in a Police Chief.
COUNCIL COMMENTS AND CONCERNS:
Councilman Murphy expressed concern with confirmation interviews by the Committee at the
end of the process and the confidentiality of the applicants. Support was expressed for the public
participation up front.
PAGE 19
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
Councilman Spurgeon commented a decision has to made whether a professional recruiter would
be involved in the process or whether it will be done in-house. A recruiter would act as
a facilitator as well. Concern was expressed with the Committee meeting with the individuals
at the end of the process. He asked the Personnel Director if his department would be capable
of handling the recruitment and on the front end, facilitating a group of citizens to make sure
their wishes and priorities are laid out in terms of what they envision a Police Chief should
be?Mayor Coontz expressed concern with the confidentiality issue and the selection of a
recruiter,due to the strong role the individual would
have.Mayor pro tern Slater commented a recruiter is needed to facilitate the citizen involvement.
He supports the Citizen's Committee because the Police Department has made a firm commitment
to community-oriented policing. There needs to be as much involvement with the
community as possible, given that the process remains confidential. He expressed support
of Councilman Alvarez's recommendation for a high-bred of the two recommended options that
would involve a community forum and a Committee selected by the Council, if at the end
the Committee would confirm that the individual chosen follows their initial qualifications and has
the type of personality needed to head the Police Department, and that it not be done from a
technical
or job perspective.IN RESPONSE TO COUNCIL'S
QUESTIONS AND CONCERNS:The Personnel Director responded he and his staff are prepared to conduct the
process, if Council desires. Because of the political nature of the process, he suggested an outsider
conduct some of the planning and facilitating the dialogue with the community. Concern was
expressed with the confidentiality of the process and the potential loss of good candidates.
Five proposals from professional recruitment firms that specialize in executive search have been
received. Some have done more Police Chief selections that others. The process requires
a thorough background search, which is where the truth about an individual comes out. If the process
were conducted in-house, it would cost a fraction of the proposed recommendation. If an outside
firm performs the process, they would act as facilitator and recruiter. It is possible to have a facilitator
who was
not a recruiter.Mara Brandman, 7319 Equitation Way, commented she doesn't understand the
fear of public involvement. Mayor Coontz responded that Council needs to discuss the various
steps of the process and what they agree
and disagree on.Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, expressed support of
a public forum.The City Manager should make the final recommendation and the
Committee should not interfere in the selection process. He urged Council to keep the process out of
the political
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
Rodger Young, (address on file), expressed support for Acting Police Chief Andy Romero being
the next Police Chief. He would like Acting Chief Romero retained on a two-year contract.
The City Manager indicated the recruitment process will be open, once it has been decided upon
by
Council.MOTION - Mayor Coontz
SECOND - Murphy AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to:
1) approve the City Manager's recommendation for the selection process for the Chief of Police
and identify Option 1 for the public participation component; and 2) the Committee be comprised of
seven members. Each member of the City Council to select one person at large,one member
from the Chamber of Commerce, and one member from the Economic Development Partnership who
is not a member of the Chamber of Commerce.MOTION - Slater
SECOND - Alvarez AYES -
Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez Moved to direct the City
Manager to enter into contract negotiations with the recruitment firm that will provide the best
overall services to the City of Orange, giving consideration to cost, but not necessarily the lowest cost,
in an amount not to exceed $30,000; and approve an appropriation from the General Fund
Reserves of $33,500 and transfer this amount to Account No. 100-1401-426700 (Other
Professional and Consulting Services) to cover all anticipated expenses. The City
Manager to look at options on the facilitation process and a report be brought back to Council
before a contract is approved.Council concurred with
Councilman Murphy's recommendation that monies would be best spent in the facilitation
phase up front, and the recruitment and background process done in-house.MOTION - Alvarez
SECOND - Slater AYES -
Slater, Alvarez NOES -
Murphy, Mayor Coontz, Spurgeon
Moved to direct the Committee to
conduct at least one community forum to provide input to the Personnel Department and a priority list
of characteristics of importance that the public would deem important.MOTION FAILED Mayor Coontz
indicated she
felt this
was unnecessary as the Committee could do the job.Councilman Murphy suggested consideration of an
alternative motion that the decision for PAGE 21
CITY COUNCIL MINUTES August 25, 1998
8. REPORTS FROM CITY MANAGER (Continued)
another public forum be left to the discretion of the Committee. Councilman Alvarez desired his
motion to stand.
COUNCILMAN MURPHY - MINUTE ORDER: "I would like it to be noted, the fact that this item was discussed.
If they (the Committee) feel the need for it on their basis, that is under their purview.I
am confident that the Committee we appoint and are selected through the Chamber and the Economic
Development Partnership will do their job."The
City Manager clarified Council will be looking to the Chamber of Commerce and Economic Development
Partnership to do a solicitation and a selection among themselves, and make a recommendation
to the Council. Council concurred.MOTION -
Mayor Coontz SECOND - Alvarez
AYES - Murphy, Slater,
Mayor Coontz, Spurgeon, Alvarez Moved to approve the
four mandatory components as follows: 1) the recruiter would interview the Department Heads for
their input; 2) the recruiter would interview representatives from the Police Department and the
labor group for their input; 3) the recruiter would interview each of the City Council and
the City Manager for their input; and 4) the recruiter reports back to the City Council with the
profile that they have developed for the City Council to review and/or modify before the actual
recruitment process begins.9. LEGAL AFFAIRS 9.
1 ORDINANCE NO.
12-98 An Ordinance of
the City Council of the City of Orange amending Title 17 of the Orange Municipal Code relating
to Site Plan Review Procedures. (A2500.0)MOTION - Murphy SECOND -
Slater AYES -Murphy,
Slater, Mayor Coontz,
Spurgeon, Alvarez Moved that Ordinance No. 12-
98 be read by title only and same was passed and adopted by the preceding vote.9.2
ORDINANCE NO.
13-98 An Ordinance of
the City Council of the City of Orange amending Title 17 of the Orange Municipal Code relating
to Fencing, Roof Mounted Equipment, Paving of Front Yard Areas in Residential District, Rock
Crushing Equipment and Accessory Structures. (A2500.0)PAGE 22
CITY COUNCIL MINUTES August 25, 1998
9. LEGAL AFFAIRS (Continued)
James Beres, 5817 E. Tumbleweed Drive, commented he is considering an unenclosed covered
front porch at his home in Crawford Hills and expressed concern that the amendment may affect
him. The Director of Community Development responded the proposed amendment would not
prohibit this type of structure.
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance
No. 13-98 be read by title only and same was passed and adopted by the preceding vote.
9.3
ORDINANCE NO. 14-98 An
Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal
Code and approving the reclassification of property located on the southwest comer of Cypress
Street and Maple Avenue, addressed 190 North Cypress Street. (Z1500.0 ZCG-1l90-
97)
Zone Change 1190-97; Gary Mead (P. J.'s Depot
Express)MOTION-
Spurgeon SECOND-
Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved that Ordinance No. 14-98 be read by title only, and same was set for second reading
by the preceding
vote.9.4 ORDINANCE NO.
15-98 An Ordinance of the City Council of the City of Orange amending Title 17 of
the Orange Municipal Code relating to the Old Towne Design Standards for Design
and Environmental Review and the boundaries of Old Towne. (
A2500.0)Ordinance
Amendment 1-
98 MOTION-
Alvarez SECOND- Murphy AYES - Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez Moved that Ordinance No. 15-98 be read by title only, and same was set for
second reading by
the preceding
CITY COUNCIL MINUTES August 25, 1998
9. LEGAL AFFAIRS (Continued)
9.5 ORDINANCE NO. 16-
98 An Ordinance of the City Council of the City of Orange amending Section 2.10.070 of
the Orange Municipal Code relating to campaign contributions. (A2500.
0)MOTION-
Alvarez SECOND-
Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Moved that Ordinance No. 16-98 be read by title only, and same was set for second reading
by the preceding
vote.10. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT
AGENCY 11. RECESS TO CLOSED
SESSION URGENT
ITEM The Assistant City Attorney announced the City Manager has requested that a Closed
Session item relating to the Y orbalChapman Park Site be added to the agenda pursuant to
Government Code Section 54954.2(b )(
2).MOTION - Murphy
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
there is a need to take immediate action and the need arose after the posting of the agenda.THE
CITY
COUNCIL RECESSED TO A CLOSED SESSION AT 9:05 P.M. FOR THE URGENT ITEM ABOVE AND FOR
THE FOLLOWING PURPOSES:a. Conference
with Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation.Old Towne
Preservation
Association v. City of Orange, et aI., Orange County Superior Court Case No. 79
64 35 b. Conference with
Labor Negotiator pursuant to Government Code Section 54957.6:City Negotiator: Personnel
Director Steven Pham Employee Organization: Police
Association PAGE 24
CITY COUNCIL MINUTES August 25, 1998
11. RECESS TO CLOSED SESSION (Continued)
c. To consider and take possible action upon such other matters as are orally announced by the
City Attorney, City Manager, or City Council prior to such recess unless the motion to recess
indicates any of the matters will not be considered in Closed Session.
7:00 P.M. SESSION
12.PUBLIC COMMENTS Tape 1147
Harry Astor, 333 City Blvd. West, representing ODS and ORRS, presented copies of comments
prepared by their accounting firm, Alder, Green and Hasson in regards to the Hilton, Farnkopf &
Hobson report presented at the August 11, 1998 Council meeting. The Hilton, Farnkopf &
Hobson report was not only incomplete, but appears to have inaccurate comments. There should
be further study and review, particularly with reference to the $974,000 item of which there were
some questions about. He commented that Council has to be sure that it has all the correct facts
and encouraged Council and staff to read in detail the comments.
13. PUBLIC HEARINGS
13.1 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, May 12, 1998, and July 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 ofthe State CEQA Guidelines. (C2300.1.2)
NOTE: Mayor pro tern Slater abstained on this item due to a potential conflict of interest with
real estate owned in Old Towne and left the Council dais.
NOTE: Councilman Alvarez abstained on this item due to a potential conflict of interest with
property owned on Glassell Street, Chapman Avenue, and others and left the Council dais.
The Director of Community Development reported the Mills Act is a State law that allows the
City to enter into contract with property owners of qualified historic properties to reduce property
taxes as an incentive to accomplish historic preservation and neighborhood preservation. The
reduction of property tax that would result from the Mills Act does not impact Orange Unified
School District (OUSD). The district receives funding from the State based on average daily
attendance. Any loss would be back billed by the State. The district was not overly concerned
about residential properties which would participate in the program. However, they did ask to be
notified of any requests for non-residential properties in a redevelopment
area.PAGE
CITY COUNCIL MINUTES August 25, 1998
13. PUBLIC HEARINGS (Continued)
Councilman Murphy commented that OUSD expressed concern that the district may be impacted
by non-residential properties in redevelopment areas and wished to be made aware of any
such requests. OUSD was appreciative that their concerns were taken into consideration prior
to Council's approval of the Mills Act. The Director of Community Development indicated he
will contact OUSD to clarify what requests they wish to be notified of, and his staff will follow-
up to ensure they
are notified.MAYOR COONTZ OPENED THE
PUBLIC HEARING.Joan Crawford, 394 S. Orange, spoke in support. With the success of the program
during the first year, it is hoped the City will consider an expansion of the program and an increase
to the number of participants. An increase would improve the value of historic resources as
well as give additional tax relief benefits to
more citizens.Fred Gillett, 205 E. Palmyra, spoke in support of the program. Concern was expressed
that since the program has been extended to commercial properties, a single applicant could
present ten applications, which would limit anyone else from being able to apply during the initial
stage of the program. Mr. Gillett recommended there be ten individual applicants, rather
than ten applications, and would also like to see unlimited applications at
this time.Corinne Schreck, 446 N. James, asked how the ten-year program works? Has the
City taken in any applications? How will the application process work; when does it begin; and
how are the people selected and chosen? Ms. Schreck said she thinks it would be difficult to
vote on this issue without having something in writing from OUSD and not knowing exactly
what the school board needs to know from the City. If OUSD wants extra money from the State
because of this program, who does
it come from?The Director of Community Development explained the 10-
year evergreen agreement. Every year the agreement is extended for another 10-year period.
The agreement could continue on forever. The agreement will be reviewed on an annual basis to
ensure the plan is being implemented and reviewed every five years to ensure the plan of
improvements is updated. If no further improvements are proposed, a notice would be filed to end
the agreement and ten years following it would terminate. No applications have been taken
as yet. If approved, ten applications only will be date and time stamped as they are received in
the morning. The first ten applications only will be received. OUSD receives funding directly
from the State. The State pays the school district on
an average daily attendance formula.Councilman Murphy indicated it was explained
at the Cities-Schools Coordinating Committee meeting that incremental changes in property tax from year-to-
year at the City level had no affect on the school district because what they
collected was based on average attendance, class size,number of students, etc. The City agreed to
OUSD's request to
be notified
CITY COUNCIL MINUTES August 25, 1998
13. PUBLIC HEARINGS (Continued)
The Assistant City Attorney commented the contract is binding. The property owner does not
have the option to opt out. The property owner would have to essentially stop maintaining their
property, in which case the Council would decide to end the contract, in which there would be a
substantial financial penalty.
MAYOR COONTZ CLOSED THE PUBLIC HEARING.
COUNCIL COMMENTS:
Councilman Murphy commented since he made the motion at the July 28, 1998 meeting to
continue this item, he now feels comfortable with the program having OUSD involved. It looks
like a great opportunity for some homeowners and business owners to get some tax relief on the
basis of maintaining their properties.
Mayor Coontz commented on the importance of the Mills Act Program. Complaints were
received that the Old Towne Design Guidelines cost people money to proceed with what they
need to do. The Mills Act Program gives some relief on the other side of the coin. It is especially
important for the future of Old Towne.
MOTION - Murphy SECOND -
Mayor Coontz AYES - Murphy,
Mayor Coontz, Spurgeon ABSENT - Slater, Alvarez
Moved to find that
this project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA)
pursuant to Section 15308 of the State CEQA Guidelines.RESOLUTION NO. 8920 A
Resolution of the
City Council of the City of Orange, California, authorizing the implementation of a Mills
Act Program in the City of Orange and establishing a policy for Historic Property Preservation Agreements (
Mills Act Contracts).MOTION - Murphy SECOND - Mayor
Coontz AYES - Murphy,
Mayor Coontz, Spurgeon ABSENT -
Slater, Alvarez Moved to approve Resolution
No. 8920 thereby approving
the Mills Act Program as recommended by staff with the one change that
the limit for the first year pilot and review would be either one year or ten individual applicants.
PAGE 27
CITY COUNCIL MINUTES August 25, 1998
13. PUBLIC HEARINGS (Continued)
MOTION - Mayor Coontz SECOND -
Spurgeon AYES - Murphy,
Mayor Coontz, Spurgeon ABSENT - Slater, Alvarez
Moved to appoint the
City Manager or authorized designee as the agent to coordinate, process,and execute each Historic
Property Preservation Agreement following approval of the contract by City Council resolution.
RESOLUTION NO. 8982 A
Resolution of the
City Council of the City of Orange amending and revising the Master Schedule of fees and
charges as authorized by Orange Municipal Code Chapter 3.10 pertaining to administration ofthe Mills Act
Program within the City.MOTION - Mayor Coontz SECOND -
Murphy AYES - Murphy, Mayor
Coontz, Spurgeon ABSENT -
Slater, Alvarez Moved that Resolution No.
8982 as introduced, be
adopted and same was passed and adopted by the preceding vote.NOTE: Mayor pro tern Slater
and Councilman Alvarez
returned to the dais at 9:05 p.m. The City Council recessed to Closed Session (see Page
24).14. PLANNING AND ENVIRONMENT - None 15. ADJOURNMENT MOTION -
Mayor Coontz SECOND - Murphy AYES - Murphy,
Slater, Mayor
Coontz, Spurgeon, Alvarez The
City Council adjourned
at 9:50 p.m.CA~~~~-Ck.LUd
CASSANDRA ATHCART, CMC CITY CLERK COONTZ MAYOR PAGE 28