09-10-1996 Council MinutesAPPROVED Hi THE CITi COC~CIL U~S~~__~y~~~ L~:f __~~o.
CITY COUNCIL MINUTES
OF A REGULAR MEETING
ORANGE, CALIFORNIA
SEPTEMBER 10, 1996
The City Council of the City of Orange, California convened on September 10, 1996 at 4:30 p.m.
in a Regular Meeting in the Council Chambers, 300 E. Chapman A venue, Orange, California.
4:30 P.M. SESSION
1. OPENING
1.1 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor pro tern Barrera
1.2 ROLL CALL
PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT -
None 1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Resolution No.
8685 was presented to Gary Conniff, Orange Fire Department,commending him
for more than thirty years of loyal and dedicated service.Bill Neessen
and Bob Landman, representing the Orange County Chapter of Mother's Against Drunk
Driving (MADD) presented awards to Orange Police Officers Jorge Chavez, Fred
Lopez and Simone Mueller recognizing their efforts in drunk driving enforcement.Mayor
Coontz
announced Lindsey Kahler, former Miss Orange, now Miss California would be
competing in the Miss America Pageant on September 14, 1996 in Atlantic City. The
City Council has sent her a message wishing her well.Mayor Coontz
announced the Street Fair Committee reported this year's event ended with records set
despite the heat. People came from all over the country; sales of food soared through canvas
roofs; and most of the arts and crafts booths reported record sales. This year's
fair drew more families. Orange scored high marks for hosting the international event proving
again people smile in the same language. No arrests were reported. The community effort
involved 1200 volunteers.1.4
PROCLAMATIONSA proclamation
declaring September 17-23, 1996 as Constitution Week was accepted by Mary
Crouch, Registrar, Daughters of the American Revolution.A
proclamation declaring September 8-]4, 1996 as National Literacy Week was accepted by
Rosanne Miller, Library.Page
I
CITY COUNCIL MINUTES September 10, 1996
2.CONSENT CALENDAR Tape 568
2.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council
agenda of a regular meeting of September 10, 1996 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 of the City Clerk.
2.2 Request Council confirmation of warrant registers dated August 23 and 27, 1996.
ACTION: Approved.
2.3 Request Council approve City Council Minutes Regular Meeting of August 13, 1996
Continued from August 27, 1996 Meeting), Regular Meeting, August 27, 1996 and
Adjourned Regular Meeting, September 3, 1996.
ACTION: Approved.
2.4 Consideration to waive reading in full of all Ordinances on the Agenda.
Barbara DeNiro, resident, requested an explanation of this item.
The Interim City Attorney advised State Law provides that if this motion is not adopted
before, the ordinance has to be read in its entirety in open session. Every city in
California has adopted this motion to waive the reading in full of the ordinances and read
by titles only.
ACTION: Approved.
BIDS
2.5 Request Council approve plans and specifications and authorize staff to request bids for
landscaping and irrigation systems at Reservoir 9A and 10. (C2500.M)
FISCAL IMP ACT: Sufficient funds have been allocated in the following accounts:
601-8041-484101-8316 -
Reservoir 9A 601-8041-
484101-8317 -
Reservoir 10
14,500
22,500
CITY COUNCIL MINUTES September 10, 1996
2. CONSENT CALENDAR (Continued)
CLAIMS
2.6 I. Erin Ettinger
2. Patricia Wilmoth
ACTION: Denied claims and referred to City Attorney and Adjuster. (C3200.0)
REMOVED AND HEARD SEP ARA TEL Y)
DONATION
2.7 Request Council approve the acceptance of seven (7) bicycles from Outland Designs.
The bicycles will be used for patrol purposes by the Police Department Bike Team.
Retail value of the donated bicycles is approximately $7,000 each. (C2500.K)
FISCAL IMPACT: None.
Teri Martin, President of Outland Designs, described the unique features of the bicycles
which improve longevity while decreasing fatigue. Mr. Martin indicated he was raised in
Orange County and thanked Police Chief Robertson who had been his mentor when he
was in law enforcement.
Barbara DeNiro, resident, asked what happens to the old bikes?
The Police Chief indicated they would be used for training. The unit is proposed to
expand and the bikes could be used for reserve officers.
MOTION - Murphy SECOND -
Spurgeon A YES -
Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.PERMIT
2.8
Request
from Premier Engineering and Grading for a hauling permit to import approximately 171,000
cubic yards of fill material into the Century Stadium/Syufy Promenade site (north
side of Katella Avenue between Main Street and the Santa Ana River). (P1300.0.
9)FISCAL IMPACT: None.
Barbara DeNiro, resident,
asked where the fill would be coming from?PAGE 3
CITY COUNCIL MINUTES September 10, 1996
2. CONSENT CALENDAR (Continued)
The Director of Public Works reported they have not informed Public Works of that
source other than a site outside the City. This is not a requirement for the permit. The
truck hauling route is from the 57 Freeway down Katella to the site, returning on Katella
to the 57 Freeway.
ACTION: Approved subject to conditions recommended by staff.
RESOLUTIONS
2.9 RESOLUTION NO. 8686
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 general plan
classification of property situated at the northeast corner of Lorna Street and the access
road to the Southern California Edison Serrano Substation. (C2300.E GPA-
2-96)General Plan Amendment 2-96, Applicant:
City of
Orange ACTION: Approved.2.10
RESOLUTION NO. 8689 A Resolution of the City Council of the City of Orange denying the appeal
of approval of Major Site Plan Review No. 9-96 and approving said Major
Site Plan Review for property located on the north side of Katella Avenue between Main
Street and the Santa Ana
River. (A4000.
0 SPR-
9-96)
Century Theaters ACTION: Approved.SPECIAL EVENTS 2.11 Request from the Bikers Connection for a grand opening/
open house in their parking lot at 1657 N. Glassell Street on Saturday,
September 21,1996. (P1300.
0.9)FISCAL IMP ACT: None.Barbara DeNiro, resident, asked
ifthere were any safety precautions necessary?The Director of Community Development indicated
this was a motorcycle store that would be generating approximately
200 people
for the
CITY COUNCIL MINUTES September 10, 1996
2. CONSENT CALENDAR (Continued)
MOTION - Barrera SECOND -
Murphy A YES -
Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Item 2.7
was removed and heard separately; all other items on the Consent Calendar were approved as
recommended.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ - None 4.REPORTS FROM COUNCILMEMBERS
Tape 1007 4.1 Request from
Councilman Spurgeon concerning the Emergency Medical Transportation Program.Councilman Spurgeon
reported approximately
one year ago when Council had debated on whether to begin this
type of program, monetary projections were discussed in order for the program to become self-
sufficient. Status reports from the Fire Chief have indicated response times have improved
and are ahead of expectations in terms of the financial goals.Councilman Spurgeon requested
an update from the Fire Chief on the program to see if there would be an
opportunity to credit or rebate a portion of the annual subscription fee back to the taxpayers. The report
is to be on the October 22, 1996 Council Agenda.Barbara DeNiro, resident,
asked for a comparison on how many households subscribe to the program now as
compared to before; and why is the cost $36.00.The Fire Chief
reported there are 100 subscriptions received per day. It was explained a subscriber is guaranteed
they will have no out-of-pocket costs in association with paramedic or transportation
services the Fire Department provides. The insurance company will be billed and/
or Medicare or any other supplements that are available.Mrs.
DeNiro requested a letter offurther explanation. The Fire Chief will comply.NON-
AGENDA ITEM - Grocery Cart Issue Councilman
Slater requested an explanation from the Police Department regarding how legislation
adopted by the State effective January I, 1997 relating to grocery carts will affect the City'
s recently adopted ordinance on this issue.The
Police Chief will present a report to Council at the September 24, 1996 meeting.PAGE
S
CITY COUNCIL MINUTES September 10, 1996
5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - Tape 1253 5.
1 Report from Investment Oversight Committee on the proposed Statement of Investment
Policy.The
Finance Director presented the revised Statement of Investment Policy, indicating the revisions
have been the result of an intensive three-month effort including significant research on
the part of staff, comprehensive review and recommendations from the Investment Advisory
Committee, and advice from the City's Auditors and Special Investment Counsel. Only those
investments with the highest credit quality and with the greatest liquidity are being recommended
for the portfolio. (C2500.F)
A summary of the most important revisions to the policy include:
Elimination of Commercial Paper, Bankers' Acceptances, Certificates of Deposits, Medium
Term Corporate Notes, Repurchase Agreements and the County Pool Investment Funds from
the list of authorized investments.
Reduction of potential investment in the Local Agency Fund from the current LAIF
maximum of$40 million ($20 million each from City and ORA) to 15% of the portfolio or
approximately $17 million in total.
Reduction in investing in U. S. Agency Bonds from no limit to a maximum of 35% ofthe
portfolio. Also eliminated GNMA's from authorized U. S. Agency investments.
Increase the required credit quality of Money Market Mutual Funds to a AAA rating.
Addition of a concise statement of prohibited investments and investment activities
including: borrowing for investment purposes; buying on margin; purchasing derivatives and
structured notes.
Addition of a section clearly summarizing investment delegation and oversight
responsibilities referencing local and State code provisions.
Addition of a section pertaining to ethical conduct.
Clarification of those institutions which may be authorized to act as our brokers.
Addition of a section summarizing our standards for mitigating risk in the portfolio.
Addition of new reporting requirements in accordance with the California Government Code
and the addition of enhanced performance and benchmark reporting standards unique to our
City.
Expansion of the annual policy update requirement to be made within 120 days of the end of
the Fiscal Year.
Reorganization of the policy and new legislative format.
Addition of a glossary to aid readers and users of the policy.
The City Treasurer expressed her support of the proposed Investment Policy.
Dr. Rick Ulivi, 369 So. Glassell, Investment Advisory Committee member, recommended the
Statement ofInvestment Policy be approved and addressed major improvements to the policy.
PAGE 6
CITY COUNCIL MINUTES September 10, 1996
5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS (Continued)
Nick Lall, 6231 Mabury Avenue, recommended changes to the Statement of Investment Policy
as follows:
Page 2, Section 1.4, Prudence, last sentence - "timely fashion" should be more specific.Page
2, Section 1.5, Ethics, first and last sentences - the words "refrain" be changed to "be prohibited."Page
3,
Section 2.2c, Delegationof Authority - action should require Council approval.Page 4, Section
2.3c, Investment Oversight Committee - violations of the City Investment Policy should carry criminal
penalties.Page 4, Section 2.
4(b), Authorized FinancialInstitutions and Dealers - selection of financial institutions and broker/dealers authorized
to engage in transactions should be approved by the City Council.Page 6 & 7,
Section 3.
l(d), Investments Authorized, second sentence - the reports from the State Treasurer be received on a
quarterly basis, rather than annually.Page 7, Section 3.3(a)(
2), Mitigating Risk in the Portfolio, Credit Risk - yield is being placed before security.Mike Jeffers, Special Investment Counsel,
indicated the
State Government Code protects public officials who are acting within the scope
of their employment. The Statement ofInvestment Policy does fully comply with California Government
Code and is more restrictive in terms of investment authorization than is required of the
code.Carole Walters, 534 N. Shaffer, expressed concern
with the City adopting the Statement of Investment Policy prior to reviewing Mr. Lall'
s comments and suggestions.Mayor Coontz assured Orange residents that the
taxpayers money is being carefully guarded through a good and strong investment policy,
security is emphasized and risks are avoided.RESOLUTION NO. 8688 A Resolution of the
City Council of
the City of Orange approving and adopting a Statement of Investment Policy.MOTION SECOND AYES Slater Coontz
Murphy, Barrera,
Mayor
Coontz,
Spurgeon,
Slater Moved
that Resolution
No. 8688 as introduced, be adopted and
same was passed and adopted by the preceding vote. The City Manager to direct staff to
review comments and suggestions made and report back to Council on October 8, 1996; additional
wording to Page 10, Item No. 4.3 to read "The audit shall be presented to theCity Council
upon its completion".PAGE 7
CITY COUNCIL MINUTES September 10, 1996
6.ADMINISTRATIVE REPORTS Tape 2802
6.1 Report from the Director of Public Works to exchange gas tax funds for general
funds that could be used for bus service, as part of the consensus plan for the Orange
County bankruptcy; approve an agreement between Orange County Transportation
Authority and the City of Orange for a fund exchange; and authorizing the Mayor and
City Clerk to execute on behalf ofthe City. (A2l00.0 AGR-
2671)The Director of Public Works reported $38 million per year for a 15 year period was
diverted from the Orange County Transportation Authority (OCTA) bus operations to the County
general fund and $23 million of County gas taxes per year is to be provided to the Orange
County Transportation Authority beginning in 1997-98. The State Constitution does not allow the
use of gas tax funds to finance bus operations and OCTA has proposed an exchange of funds
so that cities may use the gas tax funds for eligible purposes and city general funds would be
provided to OCTA. The City has a requirement under Measure M provisions to fund approximately $
2.2 million a year in transportation related activities from unrestricted funds. OCTA is
proposing to exchange approximately $1.1 million with the City of Orange for fiscal year
1997-98, which would be determined on an annual basis. The City has approximately $1.9 million
that is eligible for
gas tax funding.
MOTION - Murphy SECOND -
Slater AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater
Moved to approve and authorize the Mayor and City Clerk to execute on behalf ofthe City.
7. REPORTS FROM CITY MANAGER - None 8.
LEGAL AFFAIRS Tape 2950 8.
1 ORDINANCE NO. 19-96
An Ordinance of the City Council of the City of Orange amending Chapter 13.04 through 13.44
of the Orange Municipal Code relating to the provision of water services. (No increases
proposed.) (A2500.0 Water)
Barbara DeNiro, (address omitted at request of speaker), asked how water can be shut off for a
6.00 non-payment for street
sweeping?The City Manager indicated policies must be enforced. Water and street sweeping services are
a combined bill and services for street sweeping are not charged on a per sweep basis. A letter
of explanation of how cost are allocated was provided to Ms. DeNiro from the Public
Works
Department.The City Manager was directed to follow through on the issue with Ms. DeNiro after
the
meeting.PAGE
CITY COUNCIL MINUTES September 10, 1996
8. LEGAL AFFAIRS (Continued)
MOTION - Murphy SECOND -
Coontz AYES - Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater Moved that Ordinance
No. 19-96 have second reading waived and be adopted and same was passed and
adopted by the preceding vote, with an amendment to delete the wording in the second paragraph
of Page I after the word "state law".NOTE: There
are no increases proposed.8.2
ORDINANCE NO. 21-96 An
Ordinance of the City Council of the City of Orange amending Chapter 15.44of the Orange Municipal
Code by deleting said Chapter 15.44in its entirety and substituting therefore the following
new Chapter 15.44. (A2500.0 Swimming Pools)Swimming
Pool Barriers MOTION
SECOND
AYES
Murphy
Coontz Murphy,
Barrera, Mayor
Coontz, Spurgeon, Slater Moved that Ordinance No.
21-96 have second reading waived and be adopted and same was passed and adopted
by the preceding vote.8.3 ORDINANCE
NO. 23-96 An Ordinance
of the City Council of the City of Orange amending Chapter 5.92 of the Orange Municipal Code
relating to the regulation of news racks. (A2500.0 Newsracks)Geneva Fulton,
456 S. Main Street, reported on a newsrack located on city property at the corner of La
Veta Avenue and Main Street which has created a nuisance due to papers scattered and blown into
the streets.MOTION SECOND
AYES
Barrera
Murphy
Murphy, Barrera,
Mayor Coontz,
Spurgeon, Slater Moved that Ordinance No. 23-
96 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 PAGE 9
CITY COUNCIL MINUTES September 10, 1996
10. ORAL PRESENTATIONS
Barbara DeNiro, (address omitted at request of speaker), indicated she would defer her comments
and concerns until the 7:00 p.m. session.
Carole Walters, 534 N. Shaffer, reported campaign signs are illegal on telephone poles and will
be removed; asked if tenants at the Orange Blossom Apartments are allowed to obtain permit
parking; reported on accidents occurring near the dry cleaner on Tustin Street and Palmyra
Avenue and requested the City consider a left-tum signal on to Tustin Street, rather than
on Palmyra
Avenue.The City Manager will provide a response to Ms. Walters on the permit parking issue and
the Public Works Director and City Engineer will evaluate the traffic issue on Tustin Street
and Palmyra
Avenue.Nick Lall, 6231 Mabury, took exception to comments regarding the Investment
Policy,indicating he felt the process was too
slow.Adele Graves, congratulated Councilman Spurgeon on winning his court
case.11.
RECESS
MOTION
SECOND
AYES Barrera
Mayor Coontz Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater The City
Council recessed to a Closed Session at 6:30 p.m. for the following purposes:a. Conference
with Legal Counsel - anticipated litigation.Initiation oflitigation pursuant
to Government Code Section 54956.9 (one potential case).b. Public employee
discipline/dismissal/release, Government Code Section 54957.c. Public employment
pursuant to Government Code Section 54957: City Attorney.Redevelopment Director d.
Public employee
performance evaluation pursuant to Government Code Section 54957: City Manager e. To
consider
and take possible action upon such other matters as are orally announced by the City Attorney, City
Council prior to such recess unless the motion to recess indicates any of the matters will not
be considered in Closed Session.PAGE 10
CITY COUNCIL MINUTES September 10, 1996
7:00 P.M. SESSION
12.1 INVOCATION
Director of Public Works, Harry Thomas
12.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Mayor pro tern Barrera
12.3 ANNOUNCEMENTS
Upon returning from Closed Session, Mayor Coontz announced the City Council is proud to
inform the community that Dave Rudat is now the permanent City Manager.
The City Manager announced the confirmation of the appointment of Linda Boone as Economic
Development Director.
12.4 INTRODUCTIONS - None 12.
5 PROCLAMATIONS - None 12.6
PRESENTATIONS - None 13. PUBLIC HEARINGS
13.1 JOINT
PUBLIC HEARING WITH THE ORANGE REDEVELOPMENT AGENCY, DISPOSITION AND
DEVELOPMENT AGREEMENT, THE MILLS LIMITED PARTNERSHIP: Tape
3799 Time set for
a Joint Public Hearing with the Orange Redevelopment Agency to consider and take action on a
Disposition and Development Agreement between the Orange Redevelopment Agency and The
Mills Limited Partnership; construction of public improvements to The City Drive; a parking
area lease and a parking area sublease; all of which relate to redevelopment of The City Shopping
Center located in the Southwest Redevelopment Project Area. (RA2l00.0 AGR-2672)The
Economic
Development Director reported the City entered into an agreement with The Mills Corporation in
October, 1995. The goal was to redevelop the economically blighted area,building a
project that would provide income to the City and The Mills Corporation. The key points of
the Disposition and Development Agreement were described as follows:The Redevelopment
Agency would purchase the site from The Mills for $11.7 million. The payment of
that would be in the form of $1 ,000,000 downpayment paid to The Mills Corporation after 500,
000 sq. ft. of retail space is fully rented and operational. The remaining $10.7 million PAGE 11
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
would be paid over time through a note. The payments on the note would equal 100% of the tax
increment generated by the project minus certain expenses outlined in the DDA. If the increment
generated by the project is less than the projected, then the payment for the land would be less,
but $10.7 million is the maximum amount that would be paid.
The Agency would reconvene the site to The Mills who would then lease the parking lot to the
City. This lease would be in an amount equal to 33 1/3% of the sales tax generated from the
project, not to exceed $6.3 million. If the sales tax projections were not as high as predicted the
lease payment would be less. The lease payment is for 12 years. At this time the City would
sublease the parking lot to The Mills for 12 years for one dollar. The net present value of this
assistance would be a maximum of $18 million.
It was projected the annual local sales tax revenue to be approximately $900,000 to $1.2 million
per year. Property tax increment generated by this project could be up to $1,000,000 per year.
The employment during construction is estimated to be 2500-4000 jobs, after completion
3000-4,000 jobs. This project could be the single largest employer in the
City.Wayne Wedin, Consultant for The Mills Corporation gave a presentation of the
development plans and described the unique architectural features of the proposed
mall.Steve Jacobsen, Senior Vice-President, The Mills Corporation, reported the
existing buildings will have to be demolished because the main structural base spacing is not conducive
to the proposed tenants. The cost ofretrofitting the structure along with code
compliance and earthquake requirements, makes using the existing structure cost prohibitive.
Demolition costs are estimated in the range of approximately $2.6 million. Additional
improvements are:asbestos removal; modification to utility infrasctucture systems; upgrades required for
the tunnel;and additional traffic improvements to The City Drive. Total costs of these improvements
is in the range of $
25 million.Elizabeth Link, Senior Manager for The Mills Corporation, explained the tunnel is
a service tunnel running underneath the center. The proposal is to fill in the bulk of it with sand
and bring the remaining to code. The two office buildings will continue to use it
for service.MAYOR COONTZ OPENED THE
PUBLIC HEARING.The following people spoke in favor of
the project:Bob Bennyhoff, 10642
Morada Dr.Alan Diabartolomeo, 600 City
Parkway West Scott Parker, 158
Monterey Rd.Kevin Rice, 3035 N.
Fairbairn St.Howard Austin, 2 City Blvd.
East #180
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
Speaking in a neutral position:
Barbara DeNiro, resident
Nick Lall, 6231 E. Mabury
Their concerns were expressed as follows:
Who are the tenants?
How many project does The Mills operate?
Regarding the Theo Lacy judgment, what happened to the $9 million?
What is the life expectancy of this proj ect?
Who pays for the maintenance of the parking lot?
Mr. Austin asked if The Mills and Orange Redevelopment Agency has made any provisions for
the transition of his office during construction and building a new office when the new center is
completed?
Steve Jacobsen gave the following answers:
Currently there are four existing Mills projects, 11 neighborhood power strip centers, 5.5
million square feet of projects under development at this time, and Ontario Mills, which is
approximately 2.7 million square feet.
The projects are owned and maintained by The Mills. The anchor leases have provisions to go
beyond the 20 years.
The tenants names are not available at this time. When The Mills does a project there usually is
between 65-70% of specialty tenants that stay with The
Mills.Elizabeth Link commented that Met Life, who owns the building, made an offer to Mr.
Austin,the last remaining tenant, to move him to the first floor of the City Tower. However, this did
not meet his needs. When The Mills Corp goes forward, assuming all goes well at this
meeting,They will work with Mr.
Austin.Regarding maintenance, the agreement states The Mills Corporation maintains the project,
both landscaping and parking
lot.Also, the Disposition and Development Agreement has been available to the public in the
City Clerk's Office since August 22,
1996.Jeff Rabin, Richards Watson Gershon, Special Counsel to the Redevelopment Agency
explained the Redevelopment Agency has legal power to purchase and sell real property. It is entitled
to pay fair market value for property and to resell it at less than the fair market value of the
real property at its highest and best use if the property is subject to various restrictions and
conditions upon the sale. Those restrictions are calculated into the reduced value. Therefore,
the Redevelopment Agency, as in this case, could buy property and provide a $10 million subsidy
to PAGE
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
the ultimate user ofthe property because the user is restricted to the use of that property. The
Mills Corporation (user) is going to be obligated to develop a regional shopping center on that
property and to perform certain improvements.
THERE BEING NO FURTHER COMMENTS, MAYOR COONTZ CLOSED THE PUBLIC
HEARING.
The following comments were expressed by the Council:
Councilman Spurgeon: I just want to assure everyone that this process has been on-going
for well over a year and there has been some very hard bargaining on everyone's part. Everyone
has made concessions to make this work. It has not been taken lightly by this Council, by staff or
by The Mills, and I look forward to its progress and
establishment.Councilman Murphy: I am pleased this day has finally come. I worked in the City
Shopping Center as a 16 year old, and from personal first hand experience, the mall was already five
years behind everyone else. When that mal1 opened, everyone else was building closed malls.
When that mall decided to close, they forgot they needed key tenants to attract shoppers to
spend money and generate sales tax. This is an opportunity to have the largest single source of
sales,property tax and jobs in the City. I want to talk about The Mills at The City Shopping
Center being five years ahead. I have visited The Mills three other sites as well as Ontario, and
can assure everyone I have the utmost confidence of this project delivering on all the promises
that many have heard about over the past several years. The public/private partnership is
unique because it is entirely performanced based. This risk is on The Mills who has to
perform.500,000 sq. feet ofretail opening up generating sales tax before one dollar comes from the
City.This is the kind of deal the City should strive for all the time. I would like to
compliment everyone involved. We will wind up with a unique partnership and a landmark in
Southern
California.Mayor Coontz: A lot of this could have happened if there weren't some other activities
Council pursued, and one important activity was the final resolution of the Theo Lacy Jail law suit
which took place over many years and obviously was a deterrent to improvement of the properties
in that area. It was an extremely successful agreement with improvements to the public works
areas around what will be The City Mills. Another project public works has been involved with
along with the Council is the widening and improvements of the 1-5 Freeway which
when completed will bring many people to the center because it will be a
regional center.It's a tremendous opportunity for the City, its citizens and people all over Orange
County to shop, eat and be entertained at The City Mil1s of Orange. The current vacant center
struggled for years with many problems, and closed its doors in 1995. The economic benefits to the
City of Orange are very positive. Not only will this be a quality project, it's a win/win situation
for both The Mills and the City of Orange. I don't think the City of Orange has ever
worked together with a corporation in a more intense, more detailed project than this
has been.
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
Mayor pro tern Barrera: I helped approve the former City Shopping Center, but I like what I hear
today and think this will be a breath oflife for that area and good for the City. If this is approved
tonight, what is the timeframe?
Liz Link indicated they would be breaking ground at year end. Grand opening would be Fall of
1998.
Councilman Slater: This is a big win for the City of Orange and will give Orange its day in the
sun amongst our central Orange County cities which is long overdue. In terms of comparing
ourselves with Ontario and their Mills project, I think we've shown them how Orange does it
better.
RESOLUTION NO. 8691
A Resolution of the City Council of the City of Orange approving a Disposition and
Development Agreement between the Orange Redevelopment Agency and The Mills Limited
Partnership providing, among other things, for the acquisition by the Orange Redevelopment
Agency of approximately 74.5 acres of real property commonly known as The City Shopping
Center and the disposition of same to The Mills Limited Partnership.
MOTION - Murphy SECOND -
Coontz AYES - Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater Moved that Resolution
No. 8691 as introduced, be adopted and same was passed and adopted by the preceding vote.
RESOLUTION NO. 8692
A Resolution of
the City Council of the City of Orange approving the execution ofa parking area lease between The
Mills Limited Partnership, as Landlord, and the City of Orange, as Tenant,covering the parking
area in the shopping center commonly known as The City Shopping Center,and approving a
parking area sublease between the City of Orange, as Sub landlord, and The Mills Limited Partnership,
as Subtenant, covering the parking area in the shopping center commonly known as
The City Shopping Center.MOTION SECOND AYES
Murphy
Spurgeon
Murphy,
Barrera, Mayor
Coontz, Spurgeon,
Slater Moved that Resolution No. 8692 as
introduced, be adopted and same was passed and adopted by the preceding vote.PAGE 15
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
RESOLUTION NO. 8693
A Resolution of the City Council of the City of Orange approving the Agreement of the Orange
Redevelopment Agency to undertake the obligation to construct or pay for the construction of
certain public improvements to The City Drive adjacent to The City Shopping Center.
MOTION - Barrera SECOND -
Murphy AYES - Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater Moved that Resolution
No. 8693 as introduced, be adopted and same was passed and adopted by the preceding vote.
13.2 ORDINANCE
AMENDMENT NO. 2-96, SEXUALLY ORIENTED/ADULT BUSINESSES, CITY
OF ORANGE: Tape 6593 Time set
for a public hearing on petition by the City of Orange to consider Ordinance Amendment No.
2-96, a modification to Title 17 of the Orange Municipal Code (Zoning Ordinance),
to amend its provisions regarding sexually oriented/adult businesses and off-street
parking. The Zoning Ordinance is being amended to allow sexually oriented/adult businesses to
locate in the C-3 (Commercial and M-2 Industrial Manufacturing) Districts,
upon demonstrated compliance with criteria contained in Chapter 5.86 of the Orange Municipal Code and
to create an administrative process to approve a plan for shared parking. (
A2500.0)NOTE: Negative Declaration 1498-96 has been prepared to evaluate
the environmental impacts
of this project.The Assistant City Attorney reported Council has adopted regulations to
regulate adult business,Title 5, which are in effect now and fully operational and being imposed
as needed. This exclusive issue is the zoning where those uses would be allowed. The code
now allows adult uses in the C-3 zone subject to a Conditional Use Permit. The courts have
made in clear that Conditional Use Permit will not be effective in regulating adult uses. They
have also said cities must offer a number of sites for these uses. Staff has recommended
taking away the Conditional Use Permit vehicle and allow these uses in the C-3 and M-2
zone. This would create a legally viable method of entertaining the court's direction and also would
protect the City's interest as well. The ordinance also contains a parking
provision which would allow the Community Development Director to act on administrative
adjustments to parking requirements where the property owner will agree to a
deed restriction to offsetting business hours.The Council has enacted an Urgency Ordinance with the
same provisions. However, staff felt it should be adopted in a non-urgency sense. In case
the adoption process is ever criticized, the record
will show
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
MAYOR COONTZ OPENED THE PUBLIC HEARING.
The following people spoke in opposition:
Barbara DeNiro, (address on file)
Carole Walters, 534 N. Shaffer St.
Randall Piepenburg, 2101 E. Orangeview Ln.
Lois Barke, 2022 Spruce
Adele Graves, (address on file)
Jim Wronski, 4605 E. Silverleaf
Their concerns were expressed as follows:
What zone is Tustin Avenue?
Where can these types of businesses be in our City? Where are the C-3 and M-2
zones located?Can we limit
the number?Is this covered in the massage
parlor ordinance?The law is not protective of unwanted garbage in our communities, the courts
determine what we can have and
cannot have.Explain what sexually oriented and adult
business are?Adult business are a blight in
a community.Why isn't the Chamber of Commerce involved in
this issue?Suggest this issue be continued for
two weeks.Business License should be asking more questions rather than allowing the linginere
shops to come into
the city.The City Attorney commented the courts have stated sexually oriented businesses
cannot be banned by any city. The U.S. Supreme Courts has said cities are free to regulate
where they locate and to experiment to protect the citizens against the secondary effects of
these businesses.It is suggested that the businesses could be concentrated creating a red light district or
they can be spread out and made sure they are so many feet away from other kinds of uses.
What has been proposed by staff combines both, with spacing requirements making sure there is not
a red light district. Anaheim, Santa Ana, La Habra, Westminster and Stanton have all fought
the battle in court and have lost spending $100,000 and more and the adult businesses located
where they wanted. The proposed ordinance is the most defensible ordinance that would protect
the citizens and passes
constitutional muster.Councilman Slater asked how close would this type of business be able to locate to
the Katella Avenue Corridor? The Assistant City Attorney commented M-2 is both north and
south of the corridor and
is relatively close.Mayor Coontz asked what is the current status of the report on Council
consideration of the rezoning ofthe City's industrial area to meet the demands ofthe future and
to possibly change some zoning to commercial
or other
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
The Director of Community Development reported the entire 1200 acre industrial area has been
studied. In this year's budget there are goals and objectives in Community Development and
Economic Development to pursue the industrial area to keep the zoning current with current
teclmologies. The next focus will be Taft Corridor looking at an office/research type of use that
is locating there. During the next months of this fiscal year the information will be brought
before Council.
The Assistant City Attorney was asked about the 1,000 ft. setback. The proposed ordinance
amendment allowing the 1,000 ft. setback in the M-2 and C-3 zone is to protect the
interest ofthe City. There are other ways to keep these businesses out of the Katella Corridor by
changing the zoning immediately next to the corridor then they can not locate there. The 1,000 ft.
setback was proposed after researching other cities ordinances on
this issue.Police Chief Robertson reviewed the history of The Tunnel, a christian youth club which
took a different direction and had to be closed. The proposed ordinance will protect the City
and not allow secondary effects (prostitution) of these businesses to ruin Orange like it did
in Garden Grove. The Police Department is being as pro-active as possible, legally
building cases against these types of businesses that try to come into the City. Every application
is reviewed, however the Business License Department's application needs to be
reviewed and discussed.The City Attorney further added the City is only required to zone so there might
be so many spaces available, the City is not required to ensure they can open in the City of
Orange and the landlord is free to say, "I chose not to sell or
rent to you."THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ
CLOSED
THE PUBLIC HEARING.Councilman Murphy commented he holds the staff and Police Department in high
esteem as far as putting together a proactive approach to this reprehensible issue.
The concern is understanding the number of sites required. A more straight forward approach would
be to look at some reduction in terms of an overlay that would reduce the amount of
opportunity, keeping it within the legal limits, but removing it further from other types of zone
requirements. It should be certain that the City has minimized the opportunities for these types
of businesses staying within the legal confines of the law. Councilman Murphy was not 100% confident
of that yet because when the M-2 was mapped out in the City, it covers a large area.
Rather than relying on the best efforts of the staff to try and hurry through rezoning activities,
which could be disruptive to a lot of lives, business and property owners, consider the idea to reduce
this down even further through
an overlay
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
MOTION
SECOND
AYES
Slater Barrera
Murphy, Barrera,
Mayor Coontz, Spurgeon, Slater Moved to
certify Negative Declaration 1498-96.MOTION
SECOND
AYES
NOES
Slater
Barrera Barrera,
Mayor Coontz,
Spurgeon, Slater Murphy Moved to approve
Ordinance Amendment
No. 2-96 as outlined in Planning Commission Resolution No. PC-27-
96 and an Ordinance be brought back for first reading on September 24,1996.Mayor
Coontz
gave the following comments for the record: "I am going to vote yes on this, but I am
voting reluctantly. We have a lot more work to do on this. By the time the second reading is before
Council and it is not strengthened and we don't feel comfortable with it, then I will make my
decision."Councilman Spurgeon
agreed.MOTION SECOND
AYES
NOES
Coontz
Slater
Barrera, Coontz,
Slater, Spurgeon
Murphy Moved that the City
Manager instruct
the appropriate departments to address questions regarding the business applications, education of the
employees regarding same; get a better idea from the Planning Department as to when they
will return with the north/west area zoning proposal with details; provide more assurance through court
experience in Orange County and other places, as well as court documents, before we
believe the issue; and provide zoning maps of the subject areas.14. PLANNING AND ENVIRONMENT - None
15.
ORAL PRESENTATIONS Robyn Nordell, 223 Ventura,
Fullerton, spoke in
opposition to the daytime curfew issue.The following people submitted speaker cards in
opposition of daytime curfew, but did not speak:PAGE 19
CITY COUNCIL MINUTES September 10, 1996
13. PUBLIC HEARINGS (Continued)
Cathy Duffy, 16172 Huxley Circle, Westminster
Jeff Guyer, 2044 W. Spruce
Randall Piepenburg, 2012 E. Orangeview Lane
Paul Cackett, 8006 Eucalyptus
Robert Gnewuch, 455 N. Milford Rd.
John and Shirley Bayard, 2011 Orange Gove
Carolyn Isaacs, 4073 Santa Lucia
Cindy Fennig, 331 E. Dunton
Rich Ignatius, 209 E. Brentwood
Lillian Barke, 2334 W. Palm
Nick Lall, Orange Taxpayers, 6231 E. Mabury
Adele Graves (address omitted at the request of the speaker)
Carole Walters, 534 N. Shaffer
Police Chief Robertson reported the Orange County Police Chiefs, Sheriffs Association, District
Attorney and School Superintendents have developed a plan that would implement a county-
wide ordinance predicated on each municipality adopting a curfew ordinance which would be
uniformally enforced. This issue would require a study session with Council and then be brought
forward at a Council meeting.
Mayor Coontz announced if this item returns to the council, all people who filled out speaker's
cards will be notified.
Barbara DeNiro, 1118 E. Adams, addressed comments relating to the lingerie store on Tustin
Avenue and felt the Business License Department needs to be more careful when issuing
business licenses. Mrs. DeNim expressed further comments on The Mills Project.
16. ADJOURNMENT
MOTION - Barrera SECOND -
Slater AYES - Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater The City Council
adjourned at 10:20 p.m.GAd #_a.at..
J ~/'.n-dCASSANDRA J.
HCART, CMC CITY CLERK
j)I
rM
JOANNEC.
COONTZ MAYOR PAGE
20