02-11-1997 Council MinutesAPPROVED BY THE CITY COUNCIL ON FEBRUARY 25, 1997
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
February 11, 1997
The City Council ofthe City of Orange, California convened on 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
1.2 ROLL CALL
PRESENT - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT -
Murphy (Councilman Murphy arrived at 4:35 p.m.)1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS A Certificate
of Recognition was presented to Ray Littrell and Jack Schild, volunteers,for their
efforts in discovering Edison Company overbillings which saved the City of Orange $87,
500. Orange Police Officer Jack Nannigian was recognized for his efforts and assistance. (
S4000.S.3.10)1.4
PROCLAMATIONS A proclamation
was presented to Darrell Opp, Chief Educational Officer, for National Vocational Education
Week, ROP Student, Jamie Sutton Finley was recognized.Proclamations were
presented to Police Dog "Eiko" for eight years of dedicated service police Officer
Randy Thompson) and "Dery" (Police Office Keith Marshall) for five years of
dedicated service to the Orange Police Department.2. CONSENT
CALENDAR 2.1
Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of
a regular meeting of February 11, 1997 at Orange Civic Center, Main Library,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.PAGE 1
CITY COUNCIL MINUTES February 11, 1997
2. CONSENT CALENDAR (Continued)
2.2 Request Council confirmation of warrant registers dated January 24 and 28, 1997.
ACTION: Approved.
2.3 Request approval of City Council Minutes, Regular Meeting of January 28, 1997.
ACTION: Approved.
2.4 Consideration to waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
AGREEMENTS
2.5 Request Council approve an Agreement between the City and Parkridge Partners for the
acquisition of Lot V final Tract Map No. 15027. (A2100.0 AGR-
2751)FISCAL IMPACT: The City will receive $112,500 for the land acquisition of Lot
V.100,000 will be deposited in the Park, Acquisition and Development Fund (510
Fund);12,500 will be deposited in the General Fund (Fund
100).ACTION: Authorized the Mayor and City Clerk to execute on behalf ofthe
City.
BIDS 2.6 Request Council approve Contract Change Order No.1 in the amount of $30,000 to J.
H.Rental Inc. for increase in quantities at contract unit prices. Bid No. 956-37,
SP 3154,Community Development Block Grant Project: Palmyra Avenue and
Sycamore Avenue.FISCAL IMPACT: Appropriation of$30,000 from Account
No. 310-6048-491300-1070 Unallocated Contingencies)
to Account No. 310-6058-483300-3299-16104 (Sycamore Avenue) - $5,
000; and Account No. 310-
6058-483300-
3299-16103 (Palmyra Avenue) -25,000. (A2100.0 AGR-2639)ACTION: Approved.2.7 Request Council approve
Contract Change Order No.1 in the amount of $31,000 to Hillcrest Contracting,
Inc. for extra work beyond the scope of the original contract. Bid No.
967-08, SP 3166, Santa Fe Depot Parking Lot Improvements. (A2100.
0 AGR-2696)FISCAL IMPACT: Funds for
contingencies were
previously approved
CITY COUNCIL MINUTES February 11, 1997
2. CONSENT CALENDAR (Continued)
2.8 Request Council approve plans and specifications and authorize advertising to invite bids
for demolition and right-of-way clearance of property at 127 East La Veta
Avenue and 492 South Orange Street. A recommendation to Council to award a contract
to demolish the houses will be made only after a determination of
negative impact.FISCAL IMPACT: Funds are available in Account No.
271-5011-483399-3017 (OCTA Measure M Funds) and Account No.
271-5011-483300-3017 (City Gas Tax Funds).Mayor Coontz announced the following
letters
of concern regarding this item had
been received:Scott McReynolds, 504 S.
Grand St.Ann Siebert, 340 S. Olive
St.Steven G. McHarris, 485 S. Orange St.Mayor Coontz commented an
article was published in both daily newspapers regarding the rating of intersections in
Orange County. The intersection of LaVeta and Glassell Street was listed as one of the
major intersections with problems in
the County, receiving a classification ofF (lowest possible).The Director of Public Works recommended
this item be removed from the Agenda at this time due to a number of issues of
broad public interest. This project will go before
the Design Review Board within
the
next month.ACTION: Removed from the
Agenda.CLAIMS 2.9 CLAIMS FOR
DAMAGES FROM:a. Automobile Club
of Southern California
b. Lanny's
Hobby Shop c.
Doug Mitchell d. Sharon
Reynolds e. Mark
Rolinson f. C.J. Sinclair g. Bernice Wakefield ACTION: Denied claims for
damages and
referred
to City Attorney and Adjuster.C3200.0)CONTRACTS 2.10 Request Council award a contract in the
amount of $986,789.00 to Calfon Construction Inc. of RiaIto, CA. Bid
No. 967-20, D-124, Milford Street, Sycamore Avenue and
Walnut Avenue
CITY COUNCIL MINUTES February 11, 1997
2. CONSENT CALENDAR (Continued)
FISCAL IMPACT: Funds are available in account 530-5011-483400-
5332 (CIP Storm Drains-Costa Mesa Freeway) - $
1,253,723.ACTION: Authorized Mayor and City Clerk to execute on
behalf ofthe City.2.11 Request Council approve a contract with The ORICOM Group for
implementation of the City's Used Oil Opportunity Grant Program as awarded to the Cities of
Orange (lead city)and Garden Grove by the California Integrated Waste Management
Board through June,1998. This is a continuation ofan existing program. (A2100.0
AGR-2224.A.A)FISCAL IMP ACT: All fees for program development and
management will be paid from grant monies and will not exceed the amount ofthe
Grant: Used Oil Opportunity Grant: Revenue Account No. 220-0000-
262900-0000-00153 (Sani. State Grant Funds) -207,
226.00; Expense Account No. 220-5022-
427100-0000-00153 (Sanitation Opportunity Grant Funds) - $207,226.00.ACTION: Authorized Mayor
andCity Clerk to execute on behalf of the City.2.12 Request Council approve
a contract with The ORICOM Group for implementation of the City's Used Oil
Recycling Block Grant Program as awarded by the California Integrated Waste Management Board
for 1997. This is a continuation of an existing program.FISCAL IMP ACT:
All fees for program development management will be paid from grant monies
and not exceed the amount awarded: Revenue Account No. 220-0000-262900-0000-
00150 (Used Oil Block Grant) - $40,582.00; Expense Account No. 220-
5022-427100-0000-
00150 (Used Oil Block Grant) - $40,582.00. (A2100.0 AGR-2224.
B.A)
ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe City.PERFORMANCE REPORT
2.13 Request Council accept performance report on the City of Orange
Residential Phone-In
Used Waste Oil and
Oil Filters
CITY COUNCIL MINUTES February 11, 1997
2. CONSENT CALENDAR (Continued)
RESOLUTIONS
2.14 RESOLUTION NO. 8729
A Resolution of the City Council of the City of Orange fmally accepting the completion
of a certain public work and improvement; Bid No. 956-35; D-121;
Urbantec Engineering Inc.; Batavia Street and Maple Avenue storm drain. (A2100.
0 AGR-
2619)ACTION: Approved.
MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez
Item 2.8 was removed from the Agenda. All other items on the Consent Calendar were
approved as recommended.
END OF CONSENT CALENDAR
3. REPORTS FROM MAYOR COONTZ
3.1 Appointment of a representative to the Corridor Elected Officials Group.
ORI800.0.44.3)
MOTION - Spurgeon SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to appoint
Mayor pro tem Slater.3.2 Update
from Mayor Coontz and the City Manager concerning a proposed 10 year contract with the
County of Orange for landfill disposal services. (OCI300.K.2)Mayor Coontz gave
the following statement: "I have served for several years as the Orange County League of
Cities' appointed representative to the Orange County Solid Waste Management Commission. In
this role, I have consistently worked to protect the interests of the individual cities and
their citizens on issues of trash disposal, and to be mindful that the landfills in Orange County
are owned and operated for the benefit ofthe citizens ofthis county. It is the citizens and businesses
ofthis county who pay the bills for disposal oftrash in county dumps.After the county
bankruptcy, the county began charging less to dump trash from out ofthe county than for
our own local trash. This was done to provide $15 million a year in bankruptcy debt payments.PAGE
5
CITY COUNCIL MINUTES February 11, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
In addition, the County Board of Supervisors considered selling the landfills. This would have
raised money to help pay for the bankruptcy at the cost to all the citizens and businesses in the
county who already paid for the landfills once, and who would be asked to pay for them again
through a debt ofthe purchasing entity. As a member ofthe Waste Management Commission, I
vigorously opposed such a sale.
The League of Cities and County Waste Management staff have now reached a tentative
agreement which would provide cities with a reduced fixed landfill charge of $22 a ton over the
next ten years. This is less than that charged by neighboring counties, and it is a good deal for
us. In fact, I recently spoke at the general meeting of the Orange County League of Cities
meeting last month, and I recommended supporting the principles of this agreement. The
principles of this agreement were approved by a unanimous vote of the elected representatives of
the cities in the county.
The final draft of the proposed agreement was just completed last week, and is scheduled to be
considered by city councils throughout Orange County over the next few weeks. Our own City
staff is reviewing the document now, and the Orange City Council will consider the proposed
agreement at our next meeting on February 25th.
The purpose of this agenda item today is for City Manager Dave Rudat to provide a summary of
the proposed agreement to the City Council. His recommendation is to receive and file this
report."
The City Manager reported the Orange County City Manager's Association has been in
negotiations with representatives of the county to negotiate a long term landfill agreement which
would be beneficial to both the cities and the county. On December 24, 1996, the committee
reached a tentative Memorandum of Understanding with the county. This MOD was presented
to the full City Manager's Association on January 8, 1997. The City Manager's Association
unanimously supports this MOD and on January 9, 1997, the elected representatives of the
Orange County Division of the League of California Cities voted unanimously to approve the
MOD also.
Under the terms ofthis MOD, the threshold number of cities are required to approve the long
term landfill agreement prior to March 1, 1997 in order for the contract to take effect. A final
agreement has just been received by the City and is being reviewed by the City Attorney's Office
now for their legal format in order for Council action on February 25, 1997.
The following major proposed portions of the agreement are highlighted as follows:
1) The proposed term is for ten years.
2) The proposed contract price is fixed at $22 per ton. The current rate is $27 and had risen to a
high of$35 per ton.
PAGE 6
CITY COUNCIL MINUTES February 11, 1997
3. REPORTS FROM MAYOR COONTZ (Continued)
3) The cities are given hazardous waste cleanup liability indemnification which will provide
protection in the event there is a problem with hazardous materials cleanup in one of the
landfills.
4) The cities that are a part of this agreement must commit 100% of the solid waste they control
to the county landfills.
5) The revenues :from out of county waste beyond the $15,000,000 per year in bankruptcy
related obligations are to remain in the landfill fund unless directed by a four/fifths vote of the
Board of Supervisors for the bankruptcy debt repayment.
6) The contract price can be raised if in-county waste falls below the cumulative target
tonnage and the County has first sought to reduce its cost to use new out of county waste
revenues beyond the $15,000,000 a year in bankruptcy related obligations and uses unrestricted
landfill reserves including up to 25% of post closure reserves prior to considering any rate
increase.7) The contract price can be raised if out of county waste falls below it annual target
tonnage,only after first utilizing the options listed above. If the county proposes a rate increase in
this circumstance, cities have the option ofterminating the contract without
penalty.8) The county agrees to offer the same contract to other public and private
organizations responsible for solid waste disposal provided they commit 100% of their waste stream for the
ten year
term.9) Charges for non-contract customers will be at least $24.20
per ton.10) No changes to the Waste Management Commission
are proposed.11) The agreement is in effect only if a total of $1 ,842,000 annual in-county
tons is committed by the cities reaching agreement prior to
March 1, 1997.The terms are generally favorable to the City of Orange and the solid waste
rate payers. This agreement provides long-term price stability and an excellent rate which
the City Manager's Association sought in negotiations with the county. Subject to staff and
City Attorney review of the final document, the City Manager will recommend approval
ofthis long-term solid waste disposal agreement with the county at the
February
25,
1997
Council meeting.MOTION
SECOND AYES
Mayor Coontz Spurgeon Murphy, Slater, Mayor Coontz,
Spurgeon, Alvarez Moved to receive
and file.4. REPORTS FROM COUNCILMEMBERS -
None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
6. ADMINISTRATIVE REPORTS - None 7.
REPORTS FROM CITY MANAGER - None PAGE 7
CITY COUNCIL MINUTES February 11, 1997
8. LEGAL AFFAIRS
8.1 ORDINANCE NO. 1-
97 An Ordinance of the City Council of the City of Orange amending Section 10.14.050 of
Chapter 10.14 of the Orange Municipal Code pertaining to speed limits. (A2500.0 Speed
Limits)The speed limits would be imposed on the following
roadways:Crawford Canyon Rd. from Chapman Ave. to Creekside Ave. 35
MPH Crawford Canyon Rd. at Cannon St. from Creekside Ave. to San Juan Dr. 35
MPH MOTION - Murphy
SECOND - Slater AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Ordinance No. 1-97 have second reading waived and be adopted and same was passed
and adopted by the preceding vote.8.
2 ORDINANCE NO. 5-97
An Ordinance ofthe City Council ofthe City of Orange amending Chapter 12.58 of the Orange
Municipal Code relating to closure of City streets for special events in accordance with the
California State Vehicle Code. (A2500.0 Street Closure)
MOTION - Spurgeon SECOND -
Alvarez AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance
No. 5-97 have second reading waived and be adopted and same was passed and
adopted by the preceding vote.8.3
ORDINANCE NO. 4-97 An
Ordinance of the City Council of the City of Orange declaring the need in the City of Orange,California,
for an Industrial Development Authority and adding Chapter 2.52to the Orange Municipal
Code establishing such an Authority. (A2500.0 Industrial Development Authority)NOTE:
This ordinance does not create a new elected body nor additional compensation for existing
elected bodies. Establishing the Industrial Development Authority is to help facilitate economic
growth.Discussion:
Barbara DeNiro, (address on file) asked if there was a connection between the Council
agenda public hearing item (14.1) on AirCon Energy Inc. and the Industrial Development
Agenda item (5.2) regarding a loan to Control Air Conditioning Corporation?PAGE
8
CITY COUNCIL MINUTES February 11, 1997
8. LEGAL AFFAIRS (Continued)
The City Attorney advised the items both relate to an air conditioning type business, but they do
not have anything to do with each other.
The Director of Economic Development advised Ordinance No. 4-97 establishes an
Industrial Development Authority which is a legal entity that gives the City the power, if they choose,
to issue industrial development bonds on behalf of a specific company. This is a State of
California
Program.MOTION - Spurgeon
SECOND - Alvarez AYES -
Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that
Ordinance No. 4-97 have second reading waived and be adopted and same was passed
and adopted by the preceding vote.8.
4RESOLUTION NO. 8730 A
Resolution of the City Council of the City of Orange declaring the City Council to be the Board
of Directors ofthe Industrial Development Authority of the City of Orange. (11300.0 RES-
8730)
MOTION - Murphy SECOND -
Slater AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Resolution
No. 8730 as introduced, be adopted and same was passed and adopted by the preceding vote.
8.5 ORDINANCE
NO. 6-97 An Ordinance
of the City Council of the City of Orange amending Chapter 17.36 of the Orange Municipal Code
relating to signs. (A2500.0 Signs)MOTION - Slater
SECOND - Murphy AYES -
Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez Moved that Ordinance No. 6-
97 have first reading waived and same was set for second reading by the preceding vote.
9. RECESS TO THE
MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. RECESS TO THE
MEETING OF THE ORANGE INDUSTRIAL DEVELOPMENT AUTHORITY PAGE 9
l
CITY COUNCIL MINUTES February 11, 1997
11. ORAL PRESENTATIONS
Carole Walters, 534 N. Shaffer, expressed concern that the letter sent to the State Commissioner
for the National Register regarding Old Towne was copied to Old Towne Preservation
Association only. All interested parties should be copied, not just one specific group.
The City Manager indicated OTP A was copied because they had made the application to the
State. An apology was given to Mrs. Walters. Copies ofthe letter with attached Council
minutes are available in the City Clerk's Office.
12. RECESS
The City Attorney announced there was no need for the closed session since The Mills Ltd. was
not able to obtain the appraisal report needed for discussion.
The City Council recessed at 5:20 p.m. and reconvened at 7:00 p.m.
7:00 P.M. SESSION
13.1 INVOCATION
Pastor Doug Wright, United Pentecostal Church
13.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Coontz
13.3 ANNOUNCEMENTS - None 13.
4 INTRODUCTIONS - None 13.5
PROCLAMATIONS A proclamation
was presented to George Gorham honoring him for his service to the community as
a Library Board Trustee for the past 17 years.13.6
PRESENTATIONS - None 14. PUBLIC HEARINGS
14.1 ENERGY
CONSERVATION CONTRACT WITH AIRCON ENERGY INC.:Time set for
a public hearing on petition by the City of Orange to consider entering into an energy conservation contract
which includes designlbuild features for energy saving mechanical and lighting systems
with AirCon Energy, Incorporated in the amount of$I,047,819.00 for the City's Police
and Fire Headquarters, Main Library and Senior Center Buildings. (A2100.0 AGR-2753)PAGE
10
CITY COUNCIL MINUTES February 11, 1997
14. PUBLIC HEARINGS (Continued)
FISCAL IMPACT: Funds are budgeted in the following accounts: 725-
7028-481200-1601 Lighting) $200,000; 725-7028-481200-1602 (Mechanical) $829,389 for a
total of$I,029,289, to include a transfer of $59,000 from unappropriated funds, for a
grand total of$I,088.389.
MAYOR COONTZ OPENED THE PUBLIC HEARING.The Community Services Manager reported at the
December 10, 1996 Council meeting, Council approved a series of recommendations from AriCon Energy Inc.
At that time an energy audit was presented with findings supporting the recommendation
to move forward with the heating and air conditioning replacement at above mentioned facilities
and the lighting retrofit at three facilities. The cost was identified as $974,389.00; $40,
000 was for the energy audit.Government Code 4217.10 requires a public hearing
showing that findings through the energy services retrofit justifying the City topursue this. A
savings of $79,490 was identified warranting the finding of energy savings. Further, it
is requested an additional appropriation of 59,000 totaling $1,088,000 as outlined in the staff report. $
59,000 was inadvertently omitted at the December 10th meeting. There are sufficient
funds in the Building Improvement Fund.The Interim City Attorney opined that, if approved, Council
should include in their motion to make a finding there will be a reduced energy cost and that
the public interest will otherwise be served by
entering into this design build contract.Barbara DeNiro, (address on file), asked ifthe project went out
to bid; is the contractor from Sacramento and
how old is the Police facility?The Interim City Attorney indicated the City did not go out for
formal bid, the law allows this type of a
selection process for design build construction.The Community Services Manager reported the consultant
is based on Sacramento and has undergone a request for proposal process
which included a designlbuild alternative. AriCon Energy Inc. was selected based on their level of
experience which spanned twenty years. The Police
Facility is approximately six years old.THERE BEING NO FURTHER
SPEAKERS,
MAYOR COONTZ CLOSED
THE PUBLIC HEARING.MOTION -
Slater SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez Moved to authorize the Mayor and City Clerk to execute the contract on behalf of the
City by the preceding vote. Made a finding there will be a reduced energy cost and the
public interest will otherwise be served by entering into this
design build
CITY COUNCIL MINUTES February 11, 1997
14. PUBLIC HEARINGS (Continued)
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Mayor Coontz, Spurgeon, Alvarez Moved to appropriate
an additional $59,000 from Unappropriated Funds (Building Fund) for the project management by
the preceding vote.15. PLANNING AND
ENVIRONMENT - None 16. ORAL PRESENTATIONS - None
17. ADJOURNMENT MOTION - Murphy SECOND -
Slater AYES -
Murphy, Slater, Mayor
Coontz, Spurgeon, Alvarez
The City Council adjourned at 7:30 p.
m.CASSANDRA J. THCART, CMC CITY CLERK PAGE 12
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