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05-27-1997 Council MinutesAPPROVED BY THE CITY COUNCIL ON JUNE 10, 1997 CITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA May 27, 1997 The City Council of the City of Orange, California convened on May 27, 1997 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 Councilman Slater 1.2 ROLL CALL PRESENT - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - None 1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Mayor Coontz announced the C.O.P.S. Expo at the Mall of Orange on Saturday, June 7,1997 from 10 a.m. -7 p.m. and Sunday, June 8, 1997 from 11 a.m. - 6 p.m.Employee Recognition Service Awards were presented to Ray Bocanegra" Darlene Chandler, Tom Taulbee, Debbie Klein, Linda Berquist, and Neil Millward.C2500.J.4. 18)SergeantJim Anderson introduced and recognized members of the Citizen Police Academy, Graduate Class No.3.1.4 PROCLAMATIONS - None 2. CONSENT CALENDAR 2. 1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of May 27, 1997 at Orange Civic Center, Main Library,Police facility at 1107 North Batavia and 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 confirmationof warrant registers dated May 13 and 16, 1997.ACTION: Approved.PAGE 1 CITY COUNCIL MINUTES May 27,1997 2. CONSENT CALENDAR (Continued) 2.3 Request approval of City Council Minutes, Regular Meeting, May 13, 1997. NOTE: Mayor pro tem Slater abstained from voting due to his absence at the May 13, 1997 meeting. 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 with the State of California Department of Transportation (Caltrans) to receive reimbursement from the State for Department of Public Works staff time associated with the 1-5 Fwy. Widening Project. (A2100.0 AGR- 2829)FISCAL IMP ACT: None. The City will be reimbursed up to $20,000 over the next 4 years.ACTION: Authorized the Mayor and City Clerk to execute on behalf ofthe City.2.6 Request Council approve a Promotional License Agreement with the Orange Mall Development Associates for the C.O.P.S. Expo '97 to be held on June 7th and 8th, 1997.A2100.0AGR- 1372.I)FISCAL IMPACT: None.ACTION: Authorized the Mayor and City Clerk to execute on behalf of the City.REMOVED AND HEARD SEP ARATEL Y)2.7 Request Council approve an agreement with Century 25 Theatres in the amount of 123,000 for construction of a storm drain located at 1501 W. Katella Avenue.FISCAL IMP ACT: Funds are budgeted in the 1997/98 and 2003/04 Seven Year Capital Improvement Program.The City Attorney reported that Century 25 Theatres submitted a request for continuance of the item to June 10, 1997.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Moved to continue this item to the June 10, 1997 Council meeting.PAGE 2 CITY COUNCIL MINUTES May 27, 1997 2. CONSENT CALENDAR (Continued) AMENDMENTS REMOVED AND HEARD SEP ARATEL Y) 2.8 Request Council support OCTA proposed amendment to the Local Streets and Roads Component of the Measure M Expenditure Plan and communicate this action to the OCTA Board of Directors for inclusion in the public hearing record. (OC1300.D.1) FISCAL IMPACT: None. Mayor Coontz commented the amendment to Measure M does not coincide with OCTA's possible extension of Measure M as a further tax measure. The proposed amendment is to the existing program. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.APPROPRIATIONS 2.9 Request Council approve a proposal to appropriate $4,500.00 in grant money awarded to the Orange Police Department by the Amateur Athletic Foundation to sponsor the youth soccer league, and to appropriate $4,500.00 from Account No. 100-4001-264950 (Grants)and transfer to Account No. 100-4001-443700 (Community Support). (C2500. K)FISCAL IMPACT: None.ACTION: Approved. BIDS 2.10 Request Council approve plans and specifications and authorize advertising for bids for waterline relocation in conjunction with the 1-5 Freeway widening (W-578).S4000. S.3.7)FISCAL IMP ACT: Funding for this project in the amount of $788,655 is proposed in the fiscal 1997-98 budget in Account No. 601-8041- 484101-8320 - Pipeline Improvements-I-5 Freeway.ACTION: Approved.2.11 Request Council award Bid No. 967-28 for the recoating of the exterior of Steel Reservoirs No. 5 and No. 9 in the amount of $46,860 to the lowest responsible bidder, CITY COUNCIL MINUTES May 27,1997 2. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funds in the amount of $46,860 are budgeted in Account No. 601- 8041-484101-8222 - Reservoirs No.5 and No.9 Repainting.ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe City.2.12 Request Council approve conceptual plans prepared by CathcartlBegin & Associates Inc.,for the basketball court, tot lot and restroom building at Belmont Park, and authorize staff to advertise for bid of construction. (C2500.M.4. 18)FISCAL IMPACT: Funds are budgeted for FY 1996/97 in Account No. 510-7021-485100-0750 (Belmont Park Improvements): $250, 000. ACTION: Approved.CLAIMS 2.13 CLAIMS FOR DAMAGES FROM: (C3200.0)a. The Fieldstone Company b. Rene Zenteno c. Carmen Castellanos d. Louis Zenteno, a minor e. Estrardo Zenteno, a minor f. Carlos Zenteno, a minor ACTION: Denied claims for damages and referred to City Attorney and Adjuster.CONTRACTS 2.14 Request Council a) approve a transfer of $95,000 from 310-6058-475100-1328 (CDBG ADA Access Ramp Project) to 310-6058-483400-1381 (CDBG Glassell Street Storm Drain Project), b) appropriate $30,000 from Unappropriated Reserves, Fund 530-36000 Drainage District fund) to Account No. 530-5011-483400-1381 (Glassell Street Storm Drain) and, c) award a contract in the amount of $273,000 to Steve Casada Construction Co., Inc. Bid No. 967-35, Project No. D-22, Glassell Street Storm Drain from Adams Avenue to Katella Avenue. (A2100.0 AGR-2832)FISCAL IMP ACT: Budgeted funds are available for the recommended transfers.ACTION: Approved transfer and appropriation of funds and authorized Mayor and City Clerk to execute on behalf of the City. 2.15 Request Council approve a contract in the amount of $50,282 with Holmes & Narver,Inc. for consulting services to provide a Project Study Report for the proposed interchange at CITY COUNCIL MINUTES May 27, 1997 2. CONSENT CALENDAR (Continued) FISCAL IMP ACT: Funds are available for the recommended transfers. 25,141 262-5011-483300-3818 (Rt. 55 Fwy. at Meats Ave.)25,141 284-5011-483300-3809 ( Rt. 55 Fwy.at Meats Ave.)ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.GRANTS 2.16 Request Council approve a Homeowner Participation Program Grant in the amount of 2,000 for Case #624 and authorize the Finance Department to prepare a warrant.C2500.G.1.3.1)FISCAL IMP ACT: Funds are available in the Homeowner Participation Program Account Fund No. 316-6053-427800-1221.ACTION: Approved.2.17 Request Council approve a Homeowner Participation Program Grant in the amount of 397.50 for Case #630 and authorize theFinance Department to prepare a warrant.C2500.G.1.3.1)FISCAL IMP ACT: Funds are available in the Homeowner Participation Program Account Fund No. 316-6053-427800-1221.ACTION: Approved.LOANS 2.18Request Council approve a Deferred Payment Loan in the amount of $20,450 for Case 618 and authorize the Finance Department to prepare a warrant. (C2500.G.1.3.3)FISCAL IMPACT: Funds are available in the Deferred Payment Loan Fund 315 and will be recorded under Account No. 315-6052-811901-0000.ACTION: Approved.REMOVED AND HEARD SEP ARATEL Y)2. 19 Request Council approve a loan from the City of Orange to the Orange Redevelopment Agency in the amount of $1 ,527,597 regarding acquisition of surplus properties located at the north/ west corner of West La Veta Avenue and South Main Street under the terms and conditions set forth in CITY COUNCIL MINUTES May 27,1997 2. CONSENT CALENDAR (Continued) FISCAL IMP ACT: The first year of interest on this note, in the amount of $91,656 has been included in the fiscal year 1997-98 budget as an expenditure under debt service in the Economic Development Department (922-9811-464201) and interest income in the General Fund (100-0000-251100). In each of the two subsequent years of this three year note, appropriations for interest in accordance with the note, as well as any principal payments to be made, would be part of the annual budget process.The Finance Director explained the property was purchased by the General Fund a year ago. Much of the property was to be used for a street widening project. The surplus property was to be purchased from the City by the Agency for economic development purposes. The City adopted a Resolution which authorized a Cooperation Agreement between the City and the Agency for the purchase. The Promissory Note formalizes the payment arrangements for the purchase.MOTION - Mayor Coontz SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.RESOLUTIONS 2.20 RESOLUTION NO. 8767 A Resolution of the City Council of the City of Orange implementing a CalPERS Pre-Tax payroll Deduction Plan for Service Credit purchases. (11200.0. 3.4) ACTION: Approved.2.21 RESOLUTION NO. 8775 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 Conditional Use Permit to allow sale of beer and wine in connection with a restaurant upon property situated at the northwest corner of Orange Street and Almond Avenue. (C3300. 0 CUP-2146-96)Conditional Use Permit 2146-96, Applicant: Gary Mead ACTION: Approved. 2.22 RESOLUTION NO. 8776 A Resolution of the City Council of the City of Orange temporarily closing a section of Chapman Ave. for construction activity. ( S4000.S. CITY COUNCIL MINUTES May 27, 1997 2. CONSENT CALENDAR (Continued) 2.23 RESOLUTION NO. 8777 A Resolution of the City Council of the City of Orange adopting the City of Orange Emergency Management Plan and approving submittal of the Orange Emergency Management Plan to the State of California Office of Emergency Services by July 1, 1997. (C2500.E.6) Discussion: Barbara DeNiro, (address on file), requested an explanation of this item. The Interim Fire Chief responded the City is required to adopt the standardized Emergency Management Plan in order to be funded in the event of a disaster. The Emergency Operations Center has to operate under the Plan guidelines. ACTION: Approved. 2.24 RESOLUTION NO. 8781 A Resolution of the City Council of the City of Orange vacating public service easement at 1620 North Tustin Street. (S4000.S.4) ACTION: Approved. 2.25 Request Council approve a Quitclaim Deed to Allan Fainbarg and Sara Fainbarg, as Co- Trustees of The Fainbarg Trust, for the S.A.V.I. easement located at 1620 N. Tustin Street. (Refer to Resolution No. 8781.) (D4000.0) FISCAL IMPACT: The $75.00 fee is to be deposited in Account No. 271- 36000-Unappropriated Reserves for Special Gas Tax Fund.ACTION: Authorized Mayor and City Clerk to execute on behalf ofthe City.REMOVED AND HEARD SEPARATELY)2.26 RESOLUTION NO. 8782 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public works and improvement; Bid No. 967-08; S.P. 3166; Hillcrest Contracting Inc.; Santa Fe Depot Parking Lot. ( A2100.0)Mayor pro tem Slater expressed concern and disappointment with the newly installed light poles at the Santa Fe Depot parking lot; requested an explanation on why the poles do not match the existing light poles at the depot; stated that he hopes it doesn' t happen again in the future; and reported that one light pole is broken and tilted.The Director of Public Works explained that during the course of construction the contractor had requested a substitution on the light poles due to the long delivery time.The request was reviewed and subsequently approved by staff as the poles were found to be in conformance with the specifications. The project consultant performed an analysis of the substitution light poles and also found the poles to be in conformance. CITY COUNCIL MINUTES May 27,1997 2. CONSENT CALENDAR (Continued) In response to questions raised by Council, it was indicated the illumination levels ofthe new light poles are equal to or better than the originally specified lights. It would cost approximately $100,000 to replace and install new matching poles. The damaged pole addressed by Mayor pro tem Slater will be corrected. The City Manager suggested a lighting standard be adopted to allow consistency of lighting in Old Towne. MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez ACTION: Approved.REMOVED AND HEARD SEPARATELY - FOR DISUCSSION OF THIS ITEM REFER TO REDEVELOPMENT AGENCY MINUTES ITEM NO. 6.1)2.27 RESOLUTION NO. 8783NOTE: Director Slater abstained on this item due to a property interest at the 400 block of North Lemon.A Resolution of the City Council of the City of Orange approving an Owner Participation Agreement between the Orange Redevelopment Agency and Chapman University providing, among other things, for the development of a minimum 700 space parking structure and the acquisition by the Agency ofthe right to use 350 spaces therein, in common, with Chapman University ( total of $3,250,000 from Southwest and Northwest Project Areas). (A2100.0) MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Slater ACTION: Approved.SPECIAL EVENTS 2. 28 Request Council approve request from Hugs for Health Foundation for temporary suspension of on-street parking restrictions on both sides of South Batavia Street from La Veta Avenue to Palmyra Avenue on Wednesday, June 11, 1997 for a "Hug Holiday Extravaganza" at Hillhaven Convalescent Center. (S4000.S. 3.1.1)FISCAL IMPACT: None.ACTION: Approve.PAGE 8 CITY COUNCIL MINUTES May 27, 1997 2. CONSENT CALENDAR (Continued) MOTION - Spurgeon SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Mayor pro tem Slater abstained on Item Nos. 2.3 and 2.27. Item No.2. 7 was continued to the June 10, 1997 meeting. Item Nos. 2.8,2.19,2.26 and 2.27 were removed and heard separately. Item No. 2.27 was heard subsequent to Redevelopment Agency Item No. 6.1.The remaining Consent Calendar items were approved as presented.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS 4.1 Status Report from Councilman Murphy on the Orange County Sanitation District proposed rate changes.Councilman Murphy reported there continues to be substantial rate increases for District Nos. 1 and 11. More debt is being financed and rate increases are scheduled for the next ten years,rather than five years as are the other districts. Councilman Murphy indicated he will continue to vote against the rate increases based on the reasons outlined at the May 13th Council meeting.The Board will vote on the proposed rate changes at the Sanitation District Meeting on May 28th.Mayor Coontz confirmed the need to send a message to the Sanitation District regarding District No.1, which includes the Town and Country complex, and realignment/consolidation of the districts as was discussed at the May 13th Council meeting.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 6. ADMINISTRATIVE REPORTS 6.1 Report from the Director of Community Development on future status of unincorporated islands within the City of Orange. (Continued from May 13, 1997).The Director of Community Development reported there are approximately 17 County islands ranging in size, located throughout the City of Orange. All of the islands are developed with residential uses, with the exception of the R. J. Noble and Water District properties and the commercial/industrial portions ofthe Olive and El Modena areas. There are approximately 2475 dwelling units within the islands. The largest island is the North Tustin area east of Hewes Street that includes about 675 units. The population of all the units is approximately 7175 residents.PAGE 9 CITY COUNCIL MINUTES May 27,1997 6. ADMINISTRATIVE REPORTS (Continued) Annexations may increase the City's service costs and do not always provide a comparable increase in revenue. Commercial and industrial uses provide the most revenue from a revenue perspective to the City, however, there are not many of these uses in the County islands. The Master Tax Agreement between the City and County has a great impact on the cost and revenue balance. The County has recently established a subcommittee of Board Members and city representation that will look at issues facing the County and cities. City Manager Dave Rudat has been active on the staff working group subcommittee which is looking at County service costs associated with each of the islands. A task force within the City Manager's Association will look at specific issues facing islands that contain County redevelopment project areas. The procedure for annexation requires application to the Local Agency Formation Commission LAFCO) and a protest hearing before the City Council. The percentage ofland owners protesting the annexation determines whether an election is required or the annexation proceedings are terminated. Pending Assembly Bill (AB694), sponsored by Assemblyman Curt Pringle, could have an effect on the unincorporated county islands. AB694 would require county LAFCO's to approve island annexations of75 acres or less, without the need for a public hearing. Assembly Bill 1502 AB1502) addresses the County islands which are in redevelopment project areas and would allow those areas, upon annexation, to change from a county redevelopment area to a city redevelopment area. Mayor pro tem Slater suggested a letter in support of AB694 be sent to Assemblyman Curt Pringle and that Council consider the appointment of a citizens committee of individuals that live in unincorporated areas who are interested in annexing to the City of Orange. The citizens committee could provide a cost benefit assessment from a taxpayer's perspective; be an advocacy group for an incorporation with the State and County; promote citizen interest in annexation issues; provide information to the Council; and educate the residents in the unincorporated areas. The City Manager reported the County is undergoing a study that looks at the costs of providing services from the County's point of view. Every island in the County will be viewed differently. The major County islands have been pledged to solve part of the bankruptcy problem and the tax increment revenue goes to the bankruptcy, further complicating and diminishing any economic incentive for a city to annex that island. Tax increments have been pledged in the El Modena area. As more information is gathered, a report will be presented to Council. MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to 1) direct staff to monitor State Legislative and County of Orange activities related to the ability of the City of Orange to incorporate County Islands in the future; 2) a letter of support of AB694 be sent to Assemblyman Curt Pringle and 3) receive and file the staff report.PAGE 10 CITY COUNCIL MINUTES May 27, 1997 6. ADMINISTRATIVE REPORTS (Continued) 6.2 Report from the Director of Community Development on criteria for future Downtown special events. (C2500.G.2.0) NOTE: Councilman Alvarez indicated he has a possible conflict of interest and excused himself from the dais on this issue. The Director of Community Development reported the proposed criteria would include events that close the Plaza and the public streets to vehicles and does not include filming and events which do not close the public streets. The proposed policy has been reviewed by the Downtown Merchants Association (Business and Professional Association), Downtown property owners groups and the Chamber of Commerce. The primary goal is to limit the number of events closing the Plaza and public streets during the year and to provide a once a year approval process for the events. Over the past year, the Plaza has been closed down approximately eight times for special events. The proposed policy would allow street closure ofthe Plaza to not exceed a cumulative total of 12 Fridays, Saturdays and/or Sundays per calendar year nor more than 20 days total. There would be exceptions to special events that arise throughout the year Mayor Coontz commented a letter was received under Orange High School letterhead from Judy Sollee expressing concerns. (Letter on file in the City Clerk's office). It was indicated that the City needs to be flexible with events that will be positive for the City of Orange. Councilman Murphy agreed with the proposed policy for special events to be approved once a year and suggested a clause be added to the policy for special events that could arise throughout the year. MOTION - Mayor Coontz SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon ABSTAIN - Alvarez Moved to table consideration for 60 days to obtain input from all groups involved, downtown business owners, and representatives from various City departments that have the most interest in the events.6.3 Report from the Interim Fire Chief recommending the City agree to become a participating agency with the Orange County Health Care Agency, Certified Unified Program Agency (CUP A), for hazardous waste management pending a review of an MOU and formal adoption of a resolution. (A2100.0)The Interim Fire Chief reported the City applied to the California Environmental Protection Agency (CALIEPA) to become a Certified Unified Program Agency (CUP A). The application was denied; appealed by the City; and the appeal was denied. CUP A is a single agency that regulates all six parts of the hazardous waste program. The City currently does four of the programs in the Fire Dept. The State Water Resources Board regulates above ground storage tanks and the Orange County Health Care Agency regulates hazardous waste generators. The intent of the Senate Bill passed in 1993 was to consolidate all the agencies into one.PAGE 11 CITY COUNCIL MINUTES May 27, 1997 6. ADMINISTRATIVE REPORTS (Continued) It was indicated that some cities that had expressed opposition had joined with the Orange County Health Care Agency and others had not. Letters of support have been sent on Senate Bill 659, sponsored by Sher, to start the process over and allow cities, like the City of Orange, that have been involved since the beginning, to reapply to become CUP A. By joining with the County, the City has the ability to reapply to CALIEPA to become a CUPA and continue to manage the current programs. The annual revenue loss to the City by going with the County is approximately $20,000 at a 90% collection rate and $10,000 at a 95% collection rate. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to authorize the Mayor and City Clerk to execute on behalf of the City an agreement to become a Participating Agency with the Orange County Health Care Agency CUP A.6.4 Report from the Finance Director regarding background information and recommendations relating to the Investment Advisory Committee.The Finance Director summarized the results of a survey done on citizen participation on Investment Advisory Committees in various Orange County cities. The City's Investment Advisory Committee functions very similar to others in the County. Staffs recommendations explained in detail in Attachment B ofthe staffreport on file in the City Clerk's office) are as follows:1) Delineate more specific background qualification for candidates.2) Specify residency requirements.3) Include a provision for City Council notification for 3 or more absences of a committee member in a twelve month period.4) Include a provision for conflict of interest.5) Clarify specific operational activities that the committee may not be involved in.6) Provide for staggering ofterms of committee members to facilitate continuity within the committee.7) Extend the current committee terms until August 31, 1997, to allow time for advertising,qualification, and appointment of the new members.Mayor Coontz commented the formation ofthe original committee was discussed on December 13, 1994, just after the bankruptcy, and formed February 14, 1995. Concern was expressed that in today's world, anyone in a major firm must get permission to be involved in community activities; the difficulty is getting people to serve on the Committee when they cannot act as a broker for the City; and the proposed residency requirements.Mayor pro tem Slater suggested that serious consideration be given to increasing membership to five members, or language that states "up to five members, but not less than three"; and that language be added that "preference be given to Orange residents".PAGE 12 CITY COUNCIL MINUTES May 27, 1997 6. ADMINISTRATIVE REPORTS (Continued) Councilman Spurgeon commented it is important to give preference to Orange residents and Orange business owners. However when it comes to the investment and safeguarding of the City's money, qualifications of committee members are very important. Councilman Alvarez commented the committee should be increased to five members. Suggested Councilmembers appoint a Committee member rather than advertise for applicants; the focus of the Committee be reevaluated; asked ifthe scope of the Committee will be broadened to include the new Fiscal Agent position; requested more information be provided from staff on committees in cities that the City of Orange does joint ventures with, Anaheim, Tustin and Irvine as well as the County; discuss with the County their investments to see if it is in line with the City's and apply it to the committee's focus; and suggested that the Investment Advisory Committee report directly to the City Council. Councilman Murphy supported five qualified members on the committee; have an independent interview prior to Council's concurrence ofthe committee; and suggested Council not be involved in the interview process. Council concurred the interview committee consist of the Finance Director, the City Manager and three citizens- at-large.Nick Lall, 6231 Mabury Avenue, spoke in support of the Investment Advisory Committee reporting directly to the City Council.MOTION - Mayor Coontz SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to continue to the June 10, 1997 Council meeting.6. 5 Treasurer's report for the period ending April 30, 1997. (C2500.F)The Finance Director reported the Cash and Invested Balance was $117.1 million. Cash receipts exceeded cash disbursements by approximately $4.7 million. The excess receipts were due to the receipt oflarge semi-annual property tax revenues received in April. The excess proceeds were invested in Treasury bonds. The Local Agency Investment Fund Balance was $14.1 million; the Portfolio Yield to Maturity was 5.54%. There was a slight increase of 8/1 Oths of 1 % in market values; market values were 99.64% of book value. The Weighted-Average to Maturity was 1. 28 years.MOTION - Slater SECOND - Murphy AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and file.PAGE 13 CITY COUNCIL MINUTES May 27,1997 6. ADMINISTRATIVE REPORTS (Continued) 6.6 Report from the Director of Public Works on the disposallborrow site adjacent to Santiago Creek at Cambridge Street. (C2500.M.17) The Director of Public Works reported there has been an informal agreement with Fairhaven Memorial Park for over twenty years concerning the dumping of clean fill material on City- owned property adjacent to Santiago Creek. Over the years, regulatory requirements by various governmental agencies have made this operation inappropriate within a wetlands area and staff is proposing that the practice be discontinued. MOTION - Slater SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to receive and file.7. REPORTS FROM CITY MANAGER - None 8. LEGAL AFFAIRS 8. 1 ORDINANCE NO. 3-97 An Ordinance of the City Council of the City of Orange amending Chapter 12.28 of the Orange Municipal Code regarding street tree plantings, removals and maintenance.A2500.0 Trees) Barbara DeNiro, (address on file), expressed opposition to the tree ordinance and presented a list of questions relatives to trees. (Letter on file in the City Clerk's office).Mayor Coontz referred Ms. DeNiro to the Director of Public Works to set up an appointment for Ms. DeNiro to meet with the Street Division Manager. The Director of Public Works indicated a response will be provided to Ms. DeNiro' s questions in writing.The Director of Public Works recommended the language "a certified arborist from the community and a Council representative" be added to Section 12.28.120 of the Orange Municipal Code, as it had been inadvertently omitted.MOTION - Slater SECOND - Mayor Coontz AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 3-97 as amended, be set for an amended first reading; same was set for an amended first reading by the preceding vote.PAGE 14 CITY COUNCIL MINUTES May 27, 1997 8. LEGAL AFFAIRS (Continued) 8.2 ORDINANCE NO. 12- 97 An Ordinance of the City Council of the City of Orange amending Chapter 2.20 of the Orange Municipal Code relating to Officers' Performance Bonds. (A2500.0 City Employees)MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved that Ordinance No. 12-97 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8. 3 ORDINANCE NO. 13-97 An Ordinance of the City Council of the City of Orange amending Section 17.06.020 of the Orange Municipal Code and approving the reclassification of property associated with the Chapman University Campus, including addition of the former Orange Unified School District Headquarter's Site to the University Campus. (Z1500.0 ZCG- 1187-97)NOTE: Mayor pro tem Slater abstained from voting due to property interest on the corner block of North Lemon Street.MOTION - Murphy SECOND - Mayor Coontz AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Slater Moved that Ordinance No. 13-97 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8. 4ORDINANCE NO. 14-97 An Ordinance of the City Council of the City of Orange upholding the recommendation of the Planning Commission and approving the Third Amendment to the Chapman College Specific Plan. (C2300.J) Chapman University NOTE: Mayor pro tem Slater abstained from voting due to property interest on the comer block of North Lemon Street. PAGE 15 CITY COUNCIL MINUTES May 27, 1997 8. LEGAL AFFAIRS (Continued) MOTION - Murphy SECOND - Mayor Coontz AYES - Murphy, Mayor Coontz, Spurgeon, Alvarez ABSTAIN - Slater Moved that Ordinance No. 14-97 have second reading waived and be adopted and same was passed and adopted by the preceding vote.9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. RECESS TO THE MEETING OF THE INDUSTRIAL DEVELOPMENT AUTHORITY 11. ORAL PRESENTATIONS Barbara DeNiro, (address on file), presented a letter for the record relating to tree issues which was read by Mayor Coontz. (Letter on file in the City Clerk's office).12. RECESS - NOTE: CLOSED SESSION WAS CANCELLED.a. Conference with Legal Counsel - anticipated litigation. Significant exposure to litigation pursuant to Government Code Section 54956.9(b ) (one potential case).b. 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 13.1 INVOCATION Eric Kaelberer, Immanuel Lutheran Church 13.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Slater 13. 3 ANNOUNCEMENTS Mayor Coontz announced that Orange City News reporter Ian Fried is leaving to work for the Orange County Business Journal. 13.4 INTRODUCTIONS Comments were made by Heather Myers, Miss Orange 1997. Retired City Clerk,Marilyn Jensen, introduced the Miss City of Orange 1998 Contestants.13.5 PROCLAMATIONS - None PAGE 16 CITY COUNCIL MINUTES May 27, 1997 13.6 PRESENTATIONS - None 14. PUBLIC HEARINGS 14. 1 JOINT PUBLIC HEARING, 1997-98 FISCAL YEAR BUDGET, CITY OF ORANGE: Time set for a joint public hearing with the Orange Redevelopment Agency to consider the adoption of the 1997-98 Fiscal Year Budget and adopting a limitation on certain appropriations in accordance with Article XIII of the State Constitution. (C2500J.1. 1)The City Manager submitted the budget proposal for the period July 1, 1997 through June 30,1998. Subject to testimony received at the public hearing, adoption of the documents insure that the City has established a set oflegally adopted appropriations, met all the requirements of the Gann Initiative, and complied with the Measure M funding requirements of a Seven Year Transportation Capital Improvement Program.The proposed budget represents the second year of a three year improvement plan for restructuring the City's budget so as to enhance the already strong financial position, to redirect City resources to better serve the citizens and businesses of the community, to help maintain the focus on product and service improvements, and to reinvest in certain aspects of the public' s infrastructure which had been deferred during the recession.The 1997-98's proposed expenditure budget totals $119.73 million. The operating portion of the budget, which excludes debt service payments, redevelopment property tax increment pass through agreement payments to other public agencies, and capital improvement projects, totals 86.4 million, which is a reduction of 3.8%, from the $89.8 million operating budget for 1996-97. Significant changes in expenditures include:The implementation of a new agreement with the Orange County Transportation Authority.This agreement, entered into by the City Council on November 19, 1996, provides for the equal exchangeof $1.35 million in County gas tax funds for City general funds to implement one of the provisions of State legislation addressing the Orange County bankruptcy. An equal reduction in Public Works' general fund expenditures on gas tax eligible items is proposed.A 24% reduction in the City Attorney's Office budget, thanks to the anticipated conclusion of current major litigation involving outside legal counsel.A 19% reduction in the City Clerk's Office budget, thanks to 1996-97 of election costs that will not be repeated in 1997-98.An 18% reduction in the City Treasurer's Office budget, due to a reduction in consulting servIces.A 26% reduction in the Information Management budget, now entering its smaller third and final major upgrade phase.A 12% reduction in the Community Services Department operating budget, due to the planned January 1998 construction closure of the Main Library to conduct a major remodel.Because of this proposed $1.05 million remodel, the overall Library portion of the Community Services Department budget is increased 2% CITY COUNCIL MINUTES May 27,1997 14. PUBLIC HEARINGS (Continued) A 37% reduction in the operating portion of the Economic Development Department budget. This is due to the winding down of the planning phases of several large projects, such as The Mills, in 1996- 97.A significant reduction in property tax pass through payments, which is the result of the County Auditor's interpretation of the impact of State legislation on pass through agreements with the County. This will help offset continued projected declines in assessed valuation in the Southwest Redevelopment Project Area. We project that these declines in assessed valuation will stop in Fiscal Year 1998-99 with the development of The Mills Project, and its associated beneficial impacts on neighboring properties.The 1997-98 estimated revenues, excluding transfers, totals $103.71 million. General fund revenues are projectedto total $50.58 million, a decrease $351,000, or 0.7% from the current year, which is due primarily to the conclusion of a $1.37 million refund from the California Public Employees Retirement System (PERS) in 1996-97 which will not continue into 1997-98.Excepting this one-time item, general fund revenues are projected to increase by $1.01 million,or 2%. The largest general fund revenue is the City's one cent share of the sales tax. General sales tax revenues are projected to total $19.68 million, up 2. 8% over the current estimate of 19.15 million for 1996-97. The second largest general fund revenue is the City's share of the property tax. The City's general fund property tax revenue for 1997-98 is projected to total $9.45 million, up 1% over the current estimate of $ 9.35 million for 1996-97. These property tax projections do not assume any changes in the State's property tax distribution laws.Internal servicefund revenues are projected to decrease 20%, from $7.37 million in 1996-97 to 5.9 million in 1997-98, due to a combination of factors, including a policy change where the City will now be crediting all interest revenues in these funds to the general fund, and adopting a reduction in inflation factor charges for vehicle depreciation.Redevelopment fund revenues are projected to decrease nearly 10%, to $8.83 million, which is primarily due to continued declines in assessed valuation, mostly in the Southwest Project Area,as well as to reduced interest earnings on smaller cash balances due to expenditures of bond proceeds on proj ects.Recommended transfers for 1997- 98 total $4.04 million. The transfers are for the purposes of seeding a new computer replacement fund, providing sufficient funding for required debt service payments of the Redevelopment Agency, providing funding for major capital improvement projects such as the Main Library remodel and the replacement of the mechanical system at the Civic Center Complex, and to account for loans for Community Development Block Grant program purposes.The proposed $50.58 million general fund budget is balanced with no tax, rate, or fee increase proposals. The proposed 1997-98 general fund budget is 2. 9% lower than the 1996-97 general fund budget of$52.12 million. The Organizational Transition Plan (OTP) process continues from last year to take advantage of position vacancies as they occur. OTP's goal is reduce costs and increase services by cutting higher level full-time positions in favor of CITY COUNCIL MINUTES May 27, 1997 14. PUBLIC HEARINGS (Continued) The budget proposes a total of 616 full time and elected positions for 1997-98, and 97.23 full time equivalent part time, temporary and seasonal positions. Full time city employment per one thousand residents is at its lowest level in decades, proposed at 5.04 full time City employees per one thousand residents.The City will increase contract services where private providers can provide quality services at a lower cost than City personnel. In addition to a proposed $24.2 million capital improvement budget, where projects are entirely put out to bid, the operating contractual services budget for FY 1997-98 is $17.2 million. The budget includes increasing contract services for overflow building inspection and plan check services, park mowing operations,and the YMCA's summer aquatics programs at Orange High School.The budget proposes establishment of a new Computer Replacement Fund to allow the City to buy new computers in a timely manner, helping to reduce staffing, to improve turn around times, and to provide improved access to public information.The budget also addresses several long-needed maintenance items deferred during the recession. The most significant of these is the reconstruction of the mechanical and air conditioning systems in the Civic Center Complex.City employees not represented by the police and fire associations have been working a reduced, 36 hour work week since September 1992. This "temporary" program was adopted at a time when the State of California diverted millions in recurring city revenues to other public agencies to balance its own budget. Even though none of these funds have yet been returned to cities, the 1997-98 budget provides for an end of the work furlough program on September 14, 1997. Concurrent with the end of the furlough program, the City will expand its public service hours by 12.5%, from 80 hours every two weeks to 90 hours every two weeks. For nearly the last five years, City Hall has been open Monday through Thursday 7:30 A.M. to 5:30 P.M., and closed every Friday. Effective Friday September 26, 1997, City Hall will be open 7:30 A.M. to 5:30 P.M. Monday through Thursday and every other Friday.MAYOR COONTZ OPENED THE PUBLIC HEARING.THERE BEING NO SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING.Councilman Alvarez expressed concern regarding funding for the Senior Citizen Center;suggested the Senior Center be a separate line item in future budgets; and requested the City Manager provide a report in July or August on the effectiveness of the seismic retrofit program which sunsets in June.The City Manager responded there has been no funding reduction for the Senior Center. The Senior Center has and will continue to receive $211,000 which is given to the Center annually.There are approximately $86,000-$87,000 of other off-agenda items in the Community Services budget that supports the Senior Center. After discussion of revenues raised by the Senior Center,the City is looking for them to be creative and self- sustaining, while this budget continues to balance against the youth programs provided by this community. The Community Services budget has been reduced by $25,000, and direction has been given to the Director of Community Services to find ways to stretch program dollars for CITY COUNCIL MINUTES May 27,1997 14. PUBLIC HEARINGS (Continued) Mayor Coontz indicated a goal needs to be pursued to work more closely with the Senior Center for an understanding of the value of dollars that are spent in capital improvement program funds and in the budget. Bob Bennyhoff, 10642 Morada Drive, Orange Park Acres, complimented the City Council, the City Manager, and Community Services Department staff, for meeting the needs of the youth in the community. RESOLUTION NO. 8779 A Resolution of the City Council of the City of Orange adopting said City's Budget for the Fiscal Year 1997-98 and relating to transfers of funds between and within appropriations,transfers between funds and additional appropriations.MOTION - Mayor Coontz SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve Resolution No. 8779 approving and adopting the Fiscal Year 1997-98 Budget.RESOLUTION NO. 8780 A Resolution of the City Council of the City of Orange adopting the appropriations limits for the Fiscal Year 1997-98. MOTION - Slater SECOND - Spurgeon AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve Resolution No. 8780 adopting the Gann Appropriations limit of $72,001,522 for fiscal year 1997-98.Adopt a finding that the portion of the budget subject to the Gann limit is within the limit.MOTION - Spurgeon SECOND - Mayor Coontz AYES - Murphy, Mayor Slater, Coontz, Spurgeon, Alvarez Moved to make a finding that the portion of the budget subject to the Gann limit is $40,558,759,and therefore within the limit. Approve the Seven Year Capital Improvement Program.PAGE 20 CITY COUNCIL MINUTES May 27, 1997 14. PUBLIC HEARINGS (Continued) MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez Moved to approve the Seven Year Capital Improvement Program.15. PLANNING AND ENVIRONMENT - None 16. ORAL PRESENTATIONS Norm Phillips, 348 Redwood, expressed opposition to Section 9.16.020 of the Orange Municipal Code which prohibits the drinking of alcoholic beverages in public places. (A2500.0 Alcoholic Beverages)Mayor Coontz directed Mr. Phillips to provide the City Clerk's office a copy of his document which will be copied and provided to the City Council, the City Attorney, and the City Manager.Carole Walters, 534 N. Shaffer, expressed disgust with Council's approval of financial assistance to Chapman University for the parking structure; and asked if anything has been done about the empty railroad box cars. 17. ADJOURNMENT MOTION - Slater SECOND - Alvarez AYES - Murphy, Slater, Mayor Coontz, Spurgeon, Alvarez The City Council adjourned at 8:07 p.m. in memory of Charles Spurgeon McCandless.J;au~~~CASSANDRA . ATHCART, CMC CITY CLERK PAGE 21