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01-24-1995 Council Minutes Adj RegularAPPROVED BY THE CITY COUNCIL CITY COUNCIL MINUTES OF AN ADJOURNED REGULAR MEETING ON FEBRUARY 14, 1995. ORANGE, CALIFORNIA January 24, 1995 The City Council of the City of Orange, California convened on January 24, 1995 at 4:00 P.M. in an Adjourned Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 400 P.M. SESSION 1. OPENING 1.1 PLEDGE OF ALLEGIANCE TO THE FLAG 1.2 ROLL CALL PRESENT - Murphy, Mayor Coontz, Spurgeon, Slater ABSENT - Barrera 1.3 APPROVAL OF MINUTES - None 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS _ None 1.5 PROCLAMATIONS - None 2. CONSENT CALENDAR 2. 1 Declaration of City Clerk Marilyn 1. Jensen declaring posting of City Council agenda of an adjourned regular meeting of January 24, 1995, at Orange Civic Center, Main Library,Police facility at 1107 North Batavia and the Eisenhower Park Bulletin Board; 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 adjourned regular meeting.ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk.MOTION - Murphy SECOND - Spurgeon AYES - Murphy, Mayor Coontz, Spurgeon, Slater ABSENT - Barrera Item 2.1 was approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS _ None PAGE 1 Adj. Reg. Mtg. CITY COUNCIL MINUTES January 24, 1995 6. ADMINISTRATIVE REPORTS - None 7. REPORTS FROM CITY MANAGER - None 8. LEGAL AFFAIRS - None 9. ORAL PRESENTATIONS - None 10. RECESS MOTION SECOND AYES ABSENT Murphy Slater Murphy, Mayor Coontz, Spurgeon, Slater Barrera The City Council recessed at 4:05 p.m. to a Closed Session for the following purposes:a. Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(a):Citv of Oran2e et al. vs. Donald D. Greek. et aI., Court of Appeal, Fourth District, Case No.GO 13897 b. Conference witl1 Legal Counsel - anticipated litigation.Initiation oflitigation pursuant to Government Code Section 54956.9( c) (one potential case)c. To consider and take possible action upon such other matters as are orally announced by tl1e City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any ofthe matters will not be considered in Closed Session.11. RECESS MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 4:30 p.m. to their regularly scheduled Council meeting, January 24,1995 at 4:30 p.m. in the Council Chambers and reconvened Closed Session at 9:30 p.m.MARIL 1. JE F&Y, CMC CITY CLERK PAGE 2 Adj. Rag. M'g. APPROVED BY THE CITY COUNCIL ON CITY COUNCIL MINUTES OF A REGULAR MEETING FEBRUARY 14, 1995. ORANGE, CALFIORNIA JANUARY 24, 1995 The City Council of the City of Orange, California convened on January 24, 1995 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 Given by Councilman Mark Murphy 1.2 ROLL CALL PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 1.3 APPROVAL OF MINUTES Regular Meeting January 10, 1995.MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Adjourned Regular Meeting January 17, 1995.MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.1.4 PRESENTA TIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Resolution No. 8434 was presented to Philip L. Colin of the Orange Water Department,honoring him for more than 38 years of service to the City of Orange.Presentation of Resolution No. 8425 to Trey Sirks of the Orange Police Department,honoring him for more than 29 years of service to the City of Orange will be rescheduled.Police Officer Sirks was unable to be present due to illness.1.5 PROCLAMATIONS - None PAGE 1 CITY COUNCIL MINUTES JANUARY 24, 1995 2.CONSENT CALENDAR TAPE 194 2.1 Declaration of City Clerk Marilyn J. Jensen declaring posting of City Council agenda of a regular meeting of January 24, 1995, at Orange Civic Center, Main Library, Police facility at 1107 North Batavia and the Eisenhower Park Bulletin Board; 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 Authorize Mayor and Director of Finance to draw warrants on City Treasurer in payment of demands. ACTION: Approved. 2.3 Request to transfer funds in the amount of $14,869.82 for payment of extra work on Public Works Improvement Project, S.P. No. 3070, Bid #934-17. (A2100.0.Agr. 2215)FISCAL IMP ACT: Funds available in the Street Scan Feasibility Study (Account No.284-5032-485100-6207) to be transferred into the Interchange/ Santiago Blvd. at NoW Ranch Rd. (Account No. 284-5032- 483100-6016) forcompletion of this project.ACTION: Approved.2.4 Request for the installation of a '3-Way' STOP control and a school crosswalk at the intersectionof Palmyra Ave. and Lincoln Street. (S4000. S.3.3)FISCAL IMPACT: None.ACTION: Denied.2.5 Request from Orange County Transportation Authority to approve Amendment No. 1 to Cooperative Agreement No. C- 93-515 for the Fairhaven Overcrossing of the Costa Mesa SR-55) Freeway. (A2100. 0.AGr.2179.1)FISCAL IMPACT: None. Funding provided by OCTA.ACTION: Authorized the Mayor and City Clerk to execute the Amended Agreement on behalf of the City. 2.6 Request from Orange County Transportation Authority to approve Cooperative Agreement No. C- 94-873 for the construction of a traffic signal at LaVeta Ave. and Yorba St.; and the modification of a traffic signal at Tustin St. and Fairhaven Ave. CITY COUNCIL MINUTES JANUARY 24, 1995 2. CONSENT CALENDAR (Continued) ACTION: Authorized Mayor and City Clerk to execute agreement on behalf of the City. 2.7 Request from Roger and Rebecca Tsui of 9646 Crestview Circle, Villa Park, CA, to connect to City-owned sewer. (A2100.0.Agr. 2323)FISCAL IMP ACT: None.ACTION: Authorized the Mayor and City Clerk to execute agreement on behalf of the City.REMOVED AND HEARD SEPARATELY)2.8 Request Council authorize payment of billing from City of Anaheim for 1- 5 Freeway Consultant Services. (A2100.0. Agr.2046)FISCAL IMP ACT: Appropriate $50,000.00 from TSIP Unappropriated Reserves to Account No. 284-5011-483300 (TSIP).Barbara DeNiro, 1118 E. Adams, asked why the City was billed $50, 000 for the 1-5 Freeway consulting services. The Director of Public Works/City Engineer reported the City entered into an agreement with the City of Anaheim in January, 1993 to contract for design services for infrastructure and improvements of the 1-5 Freeway corridor. The agreement provided the City was obligated for 20% of the consultant's costs in an amount not to exceed $50,000 in anyone year. The invoice is the City' s share of the work being performed by the consultant for this past year. This agreement set a fixed cost and if more is spent by the contract, the City has no obligation on the ceiling amount. MOTION - Murphy SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.2.9 Request Council authorize the Police Department to charge a fee to other agencies that use the services of the Department's Forensic Artist. (C2500.K)FISCAL IMP ACT: This would be a revenue- producing program.ACTION: Approved.REMOVEDAND HEARDSEP ARATEL Y)2.10 Approve and authorize the award of Bid No. 945-17 for one window-style cargo van and one five-passenger compact van, to Prestige Ford, San Gabriel, CA. in the amount of 40,456 and reject all other bids. (A2100.0.Agr.2334)FISCAL IMP ACT: There are sufficient funds in Account CITY COUNCIL MINUTES JANUARY 24, 1995 2. CONSENT CALENDAR (Continued) Councilman Spurgeon indicated 2.10, 2.11 and 2.12 all involve bids and awards to car and motorcycle dealerships outside the City of Orange. Councilman Spurgeon asked why there was no response from dealerships within the City. The Purchasing Office explained each time bids go out for vehicles, all Orange dealerships are afforded the opportunity to bid. Villa Ford's Fleet Manager did not submit a bid because of other cities cancelling their purchasing of cars due to the County's bankruptcy. Contact was made to all dealerships in Orange regarding bidding and future bids. Also, the Director of the Chamber of Commerce was invited to meetings that are held with Orange businesses to discuss how business is conducted with the City. No answer has been received from the Chamber. Councilmembers expressed disappointment that Orange car dealerships did not bid. Council discussed scheduling for a future agenda a review of the opportunities that are set up to encourage business in Orange. This information is being compiled at this time. There are parameters and additional incentives which can be given to local businesses vs. those outside the City. It was suggested this should be referred to the City Manager and the Economic Development Manager to discuss the 5% additional incentive and other incentives. A study session was also suggested for further education on this subject. The City Attorney recommended that Council take action with respect to those bids on the Agenda at this time. It would be difficult to go out to bid again since those that did not bid now know what the others have bid. MOTION - Spurgeon SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Moved to authorize the Mayor and City Clerk to execute award of the four bids on behalf of the City.REMOVED AND HEARD SEP ARATEL Y)2.11 Approve and authorize the award of Bid No. 945-18 for 14 black & white police cars and nine solid color police sedans to Downey Ford, Downey, CA in the amount of $474,982 and reject all other bids. (A2100.0.Agr.2335)FISCAL IMP ACT: There are sufficient funds in Account No. 720-5023-472102 (Vehicle Replacement Fund). ACTION: Authorized Mayor and City Clerk to execute award of bid on behalf of the City. NOTE: See vote count on Item 2.10. Page 4 CITY COUNCIL MINUTES JANUARY 24, 1995 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEP ARATELY) 2.12 Approve and authorize the award of Bid No. 945-19 for four police enforcement motorcycles to Y.I.P. Motorcycles, Buena Park, CA in the amount of $29,967 and reject all other bids. (A2100.0.Agr. 2336)FISCAL IMP ACT: There are sufficient funds in Account No. 720- 5023-472102 ( Vehicle Replacement Fund).ACTION: Authorized Mayor and City Clerk to execute award of bid on behalf oftl1e City.NOTE: See vote counton Item 2.10.REMOVED AND HEARD SEP ARATEL Y)2.13 Request Council accept six-month report for Material Recovery Facility, as operated by Orange Resource Recovery Systems, Inc., subsidiary of Orange Disposal Services, Inc.from July I, 1994 through December 31, 1994. ( C2500.M.I. I)FISCAL IMPACT: None.Barbara DeNiro, 1118 E. Adams, asked what the pilot program was for the multi-tenant,and what are the options now for the multi-family total recyclingprogram?The Director of Public Works/City Engineer reported the pilot program has approximately six multiple family complexes that have 2 to 3 bins for co-mingling of recyclables. It is recommended that the contractor expand this program to get greater participation. This has to happen to meet the goal of25% diversion as mandated by State law. The Recycling Coordinator commented Orange Disposal Service has made available to the single family residents the change to co- mingle recyclables in a larger container at this time.MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Received and filed report and directed contractor to implement tl1e following actions:a. Continue co-mingling ofrecyclables for residential program through decal issuance and mailing of new brochure.b. Conclude pilot program for multi- tenant, and implement options available for multi-family total recycling program.c. Continue dry processing of commercial wastes, where possible, and implement new recycling services where feasible.d. Continue researching new and alternate CITY COUNCIL MINUTES JANUARY 24, 1995 2. CONSENT CALENDAR (Con tinned) 2.14 Request Council accept the Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. (C2500.J.1.3) FISCAL IMPACT: None. ACTION: Received and filed. 2.15 CLAIMS FOR DAMAGES FROM: (C3200.0) a. City of Villa Park b. State Farm Insurance FISCAL IMPACT: None. ACTION: Denied claims and referred to City Attorney and Adjuster. REMOVED AND HEARD SEPARATELY) 2.16 Request for extension of time to accept franchise proposal from Cablevision of Orange and extension offranchise to June 30, 1995. (FII00.0) FISCAL IMPACT: None. The Assistant City Manager explained as provided under the Federal Communications Commission guidelines for refranchising, the City has gone out to the cable community asking for bids on a new franchise. Four cable companies and Pacific Bell were contacted. No bids were received within the time period provided. However the City has received a request from Cablevision of Orange to accept a late bid proposal by the end of the month. Staff is recommending this request be granted. The City Attorney's office will be providing the cable company with a draft franchise by February 15th and negotiations will begin thereafter. Staff is also suggesting the current franchise period be extended to June 30, 1995 to ensure there is adequate time for public hearings. Mayor Coontz made the following announcement: "One of our interests in the extension of the franchise period was resolution of the questions Council had regarding the programming. During Closed Session, just before this meeting, a tentative settlement agreement was discussed with Cablevision of Orange and its parent company, Time- Warner, to address complaints from local subscribers concerning the transmission of sexually explicit programming on Channels 44 and 45. Council all accepted the agreement. The agreement provides that Cablevision will either remove the current programming of these channels or install additional positive trapping technology. The City will withdraw its civil penalty which is in effect right now only upon successful completion of the positive trapping or removal of the programming. " Page 6 CITY COUNCIL MINUTES 2. CONSENT CALENDAR (Continued) JANUARY 24, 1995 MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.2. 17 RESOLUTION NO. 8437 A Resolution of the City Council of tl1e City of Orange finally accepting the completion of a certain Public Work and improvement; Bid No. 934-30; Mladen Grbavac Construction Company; Maple Street Storm Drain across SCRRA Right-of-Way. (A21 00. 0.Agr.2227) ACTION: Approved. REMOVED AND HEARD SEP ARATEL Y - NOTE: Councilman Slater abstained from this item due to interest in adjoining property.)2. 18 RESOLUTION NO. 8439 A Resolution of the City Council of the City of Orange authorizing execution of a Public Works Cooperation Agreement with the Orange Redevelopment Agency relating to property acquisition, design and construction of a public parking lot in an amount not to exceed $ 400,000 located immediately across the railroad tracks (west side) from the Metrolink Train Station, at 184 N. Atchison St. (A2100.0.Agr.2337)Barbara DeNiro, 1118 E. Adams, asked if the parking lot will be costing $800,000 because there is an identical item on the Redevelopment Agenda of matching funds for 400, 000.The Director of Public Works/CityEngineer reported this is a matching grant, $400,000 is a grant from Cal Trans and $400,000 is from Redevelopment funds.The City Manager reported this will allow the City to match the Cal Trans funds for the Metrolink station.The Traffic Engineer gave a brief history of the parking lots in the downtown and depot area. It was explained that once the parking lot is developed and parking facilities located on both sides of the railroad the problem of passengers only getting off on the west side can be corrected. The railroad tracks are owned by Metrolink and the other is owned by Atchison, Topeka and Santa Fe Railroad.Mayor Coontz suggested a review of this project for Councilmembers.MOTION - Murphy SECOND - Coontz AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAIN - Slater Page 7 CITY COUNCIL MINUTES JANUARY 24, 1995 2. CONSENT CALENDAR (Continued) ACTION: Approved and authorized Mayor and City Clerk to execute on behalf of the City. 2.19 RESOLUTION NO. 8440 A Resolution of the City Council of the City of Orange approving an application for grant funds from the California Used Oil Recycling Block Grant Programs to expand existing program for certified collection of used oil and accompanying education of residents. C2500.M.1.l ) ACTION: Approved. MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Items 2.8, 2.10, 2.11, 2.12, 2.13, 2.16and 2.18 were removedand heard separately; all other items on the Consent Calendar were approved/denied as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ 3.1 Report on County Investment Pool from Mike Jeffers. TAPE 1360 C2500.F)Mr. Jeffers requested the final report be delayed until the next Council meeting, February 14,1995.Council discussed the status of the interviewing process for tl1e prospective members of the outside oversight committee. Mr. Jeffers explained criteria is being formulated for membership and will be included in the report. The process can begin at any time. The City management should decide who should be on the committee to recommend the appointment of the members of the committee. The City Manager suggested the committee membership should total no more than five. The interviews can be conducted and recommendations will be sent to Council for appointment. The City Manager indicated he would contact Mr. Jeffers to expedite the process.MOTION SECOND AYES Barrera Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept Mr. Jeffer's request to place the final report on the February 14, 1995 Council meeting.Page 8 CITY COUNCIL MINUTES JANUARY 24, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) Mayor Coontz announced she and the City Manager have attended many meetings regarding the County Investment Pool with no resolution on the disbursement of pool funds, just speculation. Strong feelings have been indicated about the City getting 100"10 of their money returned plus interest. Also, addressing the overall county pool, not the investment pool, the City needs to be assured the funds will be returned. There are approximately $2 million of public works projects. No response has been given to this because the main focus is on the Investment Pool. Mayor Coontz recognized Nick Lall, 6231 E. Mabury Avenue, who suggested the following: I. Enact an ordinance that makes it a criminal violation to invest in any investment that does not conform to City investment policy. If a conflict exists within the Investment Policy the most conservative interpretation should apply. 2. Have the Investment Advisory Committee meet in open public forum, no closed door meetings. There is pleanty of input from citizens of the City that could be helpful. 3. Require the City budget to be balanced and that interest income is not used in the calculations. Interest income will then be rebated to the property taxes in the form of credits which should take away some of the incentive of the Council to feel extra pressure to try to get as many pennies out of our dollars as we can. 4. If the Investment Policy prohibits a direct investment in a particular type of investment, then it also should prohibit indirect investment in a similar type of investment. 5. Form a Citizens Review Committee to make an independent review of the City of Orange's investment within the County Pool. Mayor Coontz replied some of the questions have been answered in the past. The City budget being balanced will be answered by the City Manager and the citizens review committee and outside consultant is independent. The suggestions will be taken under consideration. Mr. Lall asked the following questions: I. To City Manager, Mr. Dixon - On May 10, 1994, the Council minutes state you believe that investing in the Orange County Pool did not conform to City Investment Policy. On September 13, 1994, you acknowledged that the City is continuing to invest in the County Pool and no funds were being taken out. At that time you also stated the policy is being handled and followed. The question is, "How do you reconcile the contradiction of your statements from May to those statements you made in September?"2. Addressed to City Attorney or Mayor - City Ordinance No. 2.50.00 requires an Annual Investment Policy Compliance Report be submitted to the City Council. One has been submitted for the 1993 period and is dated September 28, 1993. As of December 19, 1994 the report for the 1994 period has not been filed. "When will it be filed? Is this not a violation of the Orange Municipal Code since it has not been filed as of yet?3. Addressed to Mr. Jeffers - Mr. Jeffers stated the City lacked the expertise to invest directly in reverse repurchase agreements. " If they lack the expertise to invest directly, do they have the expertise to properly evaluate the risk and conformity to our City policy of safety, liquidity and yield to invest indirectly and make an inteligent decision in doing so?'Page 9 CITY COUNCIL MINUTES JANUARY 24, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) Regarding question number 1, the City Manager indicated he would like to review the minutes and Council tapes before responding. A complete response will be given in a report. Regarding question number 2, the City Attorney opined it is imminent that the report will be filed. He did not think the Municipal Code ever contemplated that if a report is filed late there would be some sort of criminal charge brought against the person who filed it late, especially in light of the Treasurer who was supposed to file the report resigning on October 28, 1994 when the report was due. Regarding question number 3, Mr. Jeffers indicated he had already covered this concern at the January 10th Council meeting and it is in their report. The City recognized it did not want to operate a complicated investment program. The City believed the County Treasurer, as advertised, was using reverse repurchase agreements in a prudent, safe manner. The problem is the County Treasurer was apparently abusing his use of reverse repros by investing long term. This was not disclosed and was contrary to the express statements in the County Investment Policy and other assurances given to the City and the 185 other municipalities. They were appropriately prudent in relying on the statements that were published that they were using the repurchase agreements in a prudent manner at the County level and that they did have the necessary expertise to manage their reverse repurchase agreement borrowing program. Regarding the May 10th resolution, Mr. Jeffers did not believe it was appropriate to say Mr. Dixon said in the May 10th minutes that investing in the pool did not conform to the City Investment Policy. The question was raised on May 10th and raised on two or three other occasions which was, in Mr. Jeffers opinion, a very prudent, proper exercise of diligence by members of the Advisory Committee at the time. The determination was that the City cannot directly invest in reverse repurchase agreements but that the pool was a specifically authorized investment with the knowledge that the pool did, to some extent, use reverse repurchase agreement borrowings. There was never a statement that the investment in the pool did not conform to the City's investment policy. On one later occasion, the City consulted with experts from the City's auditors. They said if there was any issue in this regard, their recommendation was to clarify that the investment in the pool could be made with the knowledge that they were using reverse repurchase agreement borrowings at the County level. There was never a challenge that it was an improper practice. The City Attorney announced the City Council took action at its Adjourned Regular meeting of January 17, 1995 to adopt a resolution placing the County on notice that the City expects 100"10 of its investment in the Pool to be returned to the City. There was also an additional item in the resolution regarding release of documentation by the County to financial advisors in order to allow them to perform their work. The City Clerk has copies of this resolution on file (Resolution No. 8441). Page 10 CITY COUNCIL MINUTES JANUARY 24, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) TAPE 2006 3.2 Response to requests from Orange Tax Payers Association. (ORI800.0.24.1) Mayor Coontz read the following draft response by Mayor Coontz and Councilman Murphy: "As representatives of the City of Orange, elected by the people, we embrace a policy of open government promoting the exchange of ideas and the free flow ofinformation. The City Council recently received a request from the Orange Tax Payers Association to answer a questionnaire. This response is addressed not only to the Orange Tax Payers Association but to the entire community. I. QUESTION: No new taxes or fees assessed on citizens of Orange. Also, City Council must notifY the Orange Tax Payers Association 30 days in advance of any attempt to do so. REPLY: The City Council has no plans to impose any new taxes or fees and State law requires a minimum of30 days public notice prior to imposing any new tax and certain fees if we were to do so. 2. QUESTION: There shall be downsizing of unnecessary and costly City government. REPLY: Efficiency and cost effectiveness is an ongoing responsibility of our City. Beginning in 1990, through the City budgetary process, we downsized City government in response to declining economic conditions and continued to do so through fiscal year 1994-95. As future budgets are adopted, we will continue our responsibility to ensure cost effective government.3. QUESTION: No City funds shall be invested with the County or State.REPLY: The City will not invest in the Orange County Investment Pool. Each of the City' s investtnents will be carefully analyzed and their appropriateness assessed through a thorough and ongoing process. We will continue our limited investment in the State Pool (LAIF) unless the analysis being conducted by our securities special counsel advises otherwise.4. QUESTION: All Council members and Mayor will take a 10% cut in pay to be reflected as a genuine cut. This cut will be accurately reflected to PERS.REPLY: The City Council initiated a voluntary pay cut beginning in 1992 which is still in effect.City Council pay is reported to PERS in conformance with PERS rules and regulations. We will initiate efforts, through our Finance Department, to make appropriate deductions which will be reported to PERS.5. QUESTION: Council will accept, consider and respond to in a timely manner evaluation reports regarding city operations from citizen groups that are beyond the control of Council.REPLY: The City Council will continue to encourage, accept and respond to input from individual citizens and groups pertaining to any facet of City operations and responsibilities.Page CITY COUNCIL MINUTES JANUARY 24, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) 6. QUESTION: Council will determine and report to the public within 60 days the minimum level of city services and regulations lawfully required. REPLY: The protection of the health, safety and welfare of our citizens is not defined in State law by levels of service. Levels of service are reflected in the operating plan for the City through the annual budget process. Services are determined by the City Council as expressed by the citizenry and/or mandated by other regulatory agencies, balanced against the revenues the City receives. The City Council agrees we will continue, as we have in the past, to review both services and revenues on an ongoing basis during each budget year. 7. QUESTION: Council shall strictly comply with the public meetings Brown Act. REPLY: The City Council has, and will, continue to comply with the Brown Act's open meeting laws. All meetings of the City Council are open and public except for special provisions as defined within the Brown Act. These include pending and anticipated litigation and personnel matters. 8. QUESTION: Orange City Council members and any Investment Advisory Committees formed must be held accountable for their actions of the past and their actions in the future. REPLY: The City Council is accountable to the citizens of Orange for its actions. All commissions and committees (including those related to investments) are accountable to the City Council. Mayor Coontz recognized the following speakers: Carole Walters, 534 N. Shaffer, President of the Orange Tax Payers Association, indicated she would take the response back to the board for review and comments at the next Council meeting. Also, it was asked if the 10% cut would be taken off the top like the employees did. Mayor Coontz commented this was the case. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept the draft response.4. REPORTS FROM COUNCILMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None Page 12 CITY COUNCIL MINUTES JANUARY 24, 1995 6. ADMINISTRATIVE REPORTS - None 7. REPORTS FROM CITY MANAGER The City Manager commented the City has been advised at tl1e end ofthis week there will be an issue brought before the Bankruptcy Court with respect to tl1e distribution of property tax.There is approximately $211 million in tl1e fund that should be distributed to taxing agencies. It is hoped the judge will rule favorable to the City.8. LEGAL AFFAIRS 8. 1 ORDINANCE NO. 21-94 An Ordinance of the City Council oftl1e City of Orange approving first amendment (No.1) to Development Agreement No. 1-88 between the City of Orange and California Quartet, a California limited partnership, as successor-in-interest to Woodcrest Development, Incorporated.A2100.0. Agr. 1416. 1) MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 21-94 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8.2 ORDINANCE NO. 1-95 An Ordinance of the City Council of the City of Orange amending sections 17. 42.040 (0),17.43.030 (0), 17.43.130 (A), 17.44.040 (M), 17.80.030 (A-D), 17.80. 040, 17.92.010,17.94.050 and 17.95.055 of the Orange Municipal Code relating to the processing of applications to allow sale of alcoholic beverages. ( A2500. 0) MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 1-95 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8.3 ORDINANCE NO. 2-95 An Ordinance of the City Council of the City of Orange amending the "Southridge Development Area XX Planned Community" text. ( Z 1500. O- ZC 1171-94)Zone Change 1171- CITY COUNCIL MINUTES JANUARY 24, 1995 8. LEGAL AFFAIRS (Continued) MOTION SECOND AYES Barrera Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 2-95 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8.4 ORDINANCENO. 3-95 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 situated at the northeast corner of Chapman Avenue and CliffwayDrive and property located south of and adjacent to City water reservoir #5. (ZI500.0.ZC 1170-94) Zone Change 1170- 94 Applicant: B.A. Properties MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 3-95 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. ORAL PRESENTATIONS Nick Lall, 6231 Mabury Avenue, commented that he was misquoted recently. In comments made by others it was said the Council might have done something ofa criminal nature. Mr. Lall indicated he had never alleged that in any way and took great pains to be clear that was not what he was alleging. Mr. Lall requested Council meetings be televised. 11. RECESS MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 6:40 p.m. and reconvened at 7:00 p.m.Page 14 CITY COUNCIL MINUTES JANUARY 24, 1995 7:00 P.M. SESSION 12. INVOCATION Given by Pastor Tim K1inkenberg, St. John's Lutheran Church 12.1 PLEDGE OF ALLEGIANCE TO THE FLAG Given by Councilman Mark Murphy 12.2 ANNOUNCEMENTS - None 12. 3 INTRODUCTIONS - None 12.4 PROCLAMATIONS - None 12.5 PRESENTATIONS - None 13. PUBLIC HEARINGS - None TAPE 4104 13.1 APPEAL NO. 424, CONDmONAL USE PERMIT NO. 2064-94, MILT GALBRAITH/JEROME GREUBEL: (A4000. 0)Time set for a public hearing on petition by Milt Galbraith and Jerome Greubel to appeal tl1e Planning Commission's denial of Conditional Use Permit No. 2064-94 on September 19, 1994. A request to allow the construction and operation of a "Senior Citizen Apartment Project" and the construction of buildings exceeding two stories in height. The proposal includes a request for a density bonus in exchange for renting 25% of the units to low or very low income senior households. Subject property is located on the west side of Newport Boulevard, 400 feet soutl1 of Chapman Avenue ( 340 N. Newport Boulevard). The zoning is C-l (Commercial).NOTE: Negative Declaration 1454-94 has been prepared to evaluate the environmental impacts of this project.THE APPELLANTS STATE THE FOLLOWING REASONS FOR THE APPEAL:Orange Park Heights Senior Community requests City Council Appeal based on the following:A. Due to a scheduling confusion, the project architect was absent from tl1e public hearing, hence unable to explain the technical concerns raised by the Planning Commission.B. By the Planning Commission Chairman's admission, the Commission is only able to consider issues relevant to land use and technical issues therein. The Orange Park Heights Senior Community however has significant social, economic and community benefits which are generally Page 15 CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continued) responsibilities of the City Council. In addition, the development team has worked closely with the City Housing and Community Development Staff for twelve months, and issues relevant to those negotiations were also not considered by the Planning Commission. We feel that the City of Orange deserves the quality senior housing our proposal provides. We feel the City Council should have the opportunity to see the project for themselves." MAYOR COONTZ OPENED THE PUBLIC HEARING. The Director of Community Development reported within the city ordinance are regulations regarding senior residential development which are allowed by conditional use permits in the C- I zone. Within the regulations is a 25% bonus density allowed over the site designated density, and 83 units would be allowed. The request is to provide 25% of the units as affordable units for low and moderate income individuals in exchange for consideration of modifications of development standards. Those include a reduction in the parking provided on site. The parking per ordinance is one space per unit. The applicant is proposing a parking ratio of approximately .82 parking spaces per unit, 75 spaces for the 92 living units proposed. Also requested is a modification of the height standard. The proposal includes two and three story development with a maximum structure height of 42 feet. The ordinance establishes height as two story or 30 foot maximum.The proposal has 92 exclusively senior units, which will not be allowed to be converted to normal residential apartment units. The rear building is three story maximum in anyone location, though in the rear portion of the building, the floor level is elevated higher than the front. There has been discussion of whether that represents three or four stories. From a technical zoning code compliance it is a three story building.Elevators are provided in the structure. There is a security gate provided near the entry of the project. There are six parking spaces outside the security gate for guests.The site elevation changes from the street to the southwesterly corner approximately 100 ft.,which is a substantial slope. The terrain dictates that substantial grading is required to provide for development of the building pads on the site. It is estimated that 32,000 cubic yards of material will need to be removed for development. To the rear of the structure is a crib wall, 29 ft.maximum at its highest point to provide the level building pads on the site.The following letters have been received by Council which indicated the senior use was acceptable, however serious concerns regarding the project were expressed:Sherry Ullman, dated l/19, Linda Cross, dated l/17, Mary Haupt, dated 1/21, Terry Sargeant,dated 1/21, Linda Elliott, dated l/23, James L. Onak, Santiago Hills Action Committee dated l/17, Russell & Lori Miura, datedl/24, Keystone Pacific Property Management, Cowan Hills Assoc, dated l/20 and Robert Hahn, dated l/ 13/.Page CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continued) The Planning Commission held a public hearing September 19, 1994 and denied the request based on the following: I) Although the proposed use of this property for senior housing would fulfill a sound principle ofland use in that senior housing is a service needed in this area of the community, the manner in which the construction is proposed would cause deterioriation of bordering land uses and create special problems for the area. 2) The site presents significant physical constraints in regard to its shape, topography and access limitations which run contrary to the applicants' requests for increased density and light and for a decrease in parking. The proposed height and mass of the buildings, the parking reductions and limitations on access combine to create a project which would, ifbuilt, have a negative effect on the community and neighborhood plans adopted for the properties in the area and immediately adjoining the property. 3) The action to deny this project was made in consideration of a revised condition number ten relative to dedication of the recreation/equestrian trail and an additional requirement that any application for development of this property be accompanied by precise dimensions on the site plan and preliminary grading and landscape plans. THE FOLLOWING PEOPLE SPOKE IN FAVOR: Jerry Greubel, Appellant, 12805 Newport Avenue, Tustin Adele Chang, Lynn Chang & Associates, Architects for the project, Pasadena Allen Heller, Real Estate Management System, 1407 N. Batavia, Orange Don Ames, Western States Geotechnical, Anal1eim Ann Hogen Sheresheusky, 2152 Elden Ave., #1 Costa Mesa Rich Katnik, 10452 Orange Park Blvd. Charles Jones, 19255 E. Chapman Ave. Their comments are as follows: There is a demand for senior housing in this area. Seniors have a low crime rate and low impact on the local infrastructure. This site is the only site for a senior project in Orange. It is close to shopping, parks, community college across the street and a 4-line bus line which will provide access for seniors through the City of Orange.Parking has been increased from79"10 to 81 % from the first submittal and more parking can be created, if needed.Ms. Chang reported if the project moves forward, grading and drainage plans will be prepared and drainage should occur without draining onto other people's property. A civil engineer would be retained for these plans.Mr. Ames commented his relationship with this project began in 1990 when engineering began for development of the parcel as a shopping center. Civil engineering, geotechnical and drainage work began with about the same configuration as shown at this time for this project. The plans were approved two years ago, although the project never came to fruition due to financial problems. The drainage problems were solved however, and there is adequate storm drainage Page CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continued) facilities in the area to handle runoff the project would generate. The soil is stable. Construction of the crib wall 27 ft. high is not significant because the material will stand on its own. A fault was found also. The following people spoke in opposition: Bob Hahn, 7620 E. Briarcrest Ln. Sheri Ullman, 371 Brook Glen Ln. Russell Miura, 319 N. Willow Springs Rd. Ron Kuskie, 7702 E. Live Oak Bill Burk, 10051 Sunrise Ln. Terri Sargeant, 137 N. Cobblestone Sheri Shepherd, 7620 E. Cedar Creek Way Beverly Bryant, 169 S. Amberwood Gary Hoffman, 310 N. Willow Springs Rd. Their concerns were expressed as follows: Support senior housing in Santiago Hills, but this particular site is constrained in terms of access, frontage onto Newport Boulevard, steepness of the site and the project is attempting to exceed density requirements that already exist in the code for senior housing. The project tries to go beyond the requirements for building in the area. There are no tlrree and four story buildings in Santiago Hills. This is a rural community. If the project can meet the density requirements at 83 units and meet the building height requirement of 30 ft. and can satisfY the parking requirement of one space per unit, then there will be no problem. This project does not fit into this area. Safety of seniors and other citizens trying to drive on Newport Boulevard is at risk the way the driveway is situated at a 10% grade. This is an extremely steep driveway to negotiate a 90 degree turn at the bottom and then turn into traffic going approximately 45 mph and merging from two lanes down to one at that spot. If there is a fault on the project, the exhibits should show it. Trucks park on Newport Boulevard and will cause traffic problems. Project will impact neighbor's views. Mr. Berke discussed the differences between his shopping center project and the currently proposed project. The Fire Chief was asked what grades were allowable for the Fire Department. ChiefRudat indicated 12% for limited distances. Page 18 CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continned) REBUTTAL Mr. Gruebel commented $75,000 of taxes per year will be paid. There is no senior project within five miles. No one's view will be blocked. Mr. Gruebel indicated he didn't necessarily want four stories but had to try to provide the affordability on this project. Council discussion ensued relative to the need for a civil engineering plan, questions regarding the dimensions, the complexity of a hillside site with many constraints, details and dimensioning throughout needs to be a reviewed in order to make a decision. The project can be a benefit to the community but needs to address the concerns expressed at this meeting. THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that based on the concerns of the community and their support of senior projects we need to give this application another chance and send it back to the Planning Commission,requesting a civil engineer be hired to prepare a plan that shows detail and dimensioning density and building height is still a question,parking is a concern of mine because I helped to draft the senior housing development ordinance and visited many senior projects a number of years ago.grading is another issue, the incline grade of the driveway; the crib wall, retention and appearance; turnaround areas which are important to emergency vehicles,the amount of usable open space. (I'm not too sure that a outdoor swimming pool for seniors is a necessity - it's an option.)storage area for tl1e seniors, which is another aspect of the senior housing code which has not been properly addressed; circulation in general, safety issues of ingress and egress off Newport Boulevard,ADA requirements which may go beyond the senior housing ordinance;guest parking including its location issues concerning the appearance of the building control of the parking spaces through assignments all equipment contained within the roof all speakers to be notified of public hearings for the Planning Commission any other issues the Planning Commission or staff has previously addressed or wishes to address in the future. Statement - Mayor Coontz: " We hoped for a positive result out of this exercise. <<NOTE: The City Council recessed at 8:40 p.m. and reconvened at 8:50 p.m.Page 19 CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continued) TAPE 938 13.2 CONDmONAL USE PERMIT 2071-94, ALMOUSSA VI:Time set for a public hearing on petition by AI Moussavi to consider Conditional Use Permit 2071-94, approval of an Alcoholic Beverage Control "off-sale" license, type 20, pursuant to Section 17.80.030 of the Orange Municipal Code. The property is located at 3232 E. Chapman Avenue. (C3300.0)NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines, Section 15301.MAYOR COONTZ OPENED THE PUBLIC HEARING.The Director of Community Development reported since this is an existing development there are no proposed modifications to the building. The Police Department appeared at the Zoning Administrator's public hearing and identified their intention to protest this according to ABC regulations for overconcentration of the number of alcoholic facilities within the area and for its location within a high crime area.The Zoning Administrator's action dated September IS, 1994 is a recommendation to Council to approve the application. There are eight conditions of approval, however it was suggested that two suggested conditions replace condition number 8, which is as follows: I) This conditional use permit shall be reviewed one year from date of approval and each year thereafter. 2) A review shall be conducted jointly by the Community Development Director and Police Chief, or designees. Purpose of the review shall be to identifY uniquely adverse issues ofloitering,vandalism, criminal activity, noise or nuissance resulting from approval of this CUP. If such issues are identified, the CUP shall be presented to City Council for consideration of conditions,modification or revocation. Advisory Note: During its investigation of this application, the Orange Police Department hasdetermined that this proposal is located within a high crime area, an area of over concentration of existing ABC licenses as defined by the rules of the State Alcoholic Beverage Control Board. Unless directed othelWise by the City Council, it is the intention of the Orange Police Department to protest this request as allowed by ABC rules. Speaking in favor:Mr. AI Moussavi, 3232 E. Chapman, agreed to the 10:00 p.m. curfew and indicated all his competition have beer and wine licenses. It is important to stay competitive in this business.THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING.Councilman Spurgeon commented he is opposed to having alcohol sold where gas is pumped,however the City Attorney has educated Council on ABC regulations and conditional use permits for land CITY COUNCIL MINUTES JANUARY 24, 1995 13. PUBLIC HEARINGS (Continued) MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that this project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines, Section 15301.MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Conditional Use Permit 2071-94 based on tl1e Zoning Administrator's recommendations, and amending the conditions to include tl10se under the title of conditions added to all ABC Conditional Use Permit draft that was included in tl1e packet. Also, to include the conditions as outlined in the report of September 15, 1994.TAPE 1566 13. 3 REQUEST FOR RATE INCREASE, COAST YELLOW CAB COOPERATIVE:Time set for a public hearing on petition by Coast Yellow Cab Cooperative to consider the following taxicab rate increases: (P1300.0.4)First 1/6 Mile $1.90 Each Additional 1/ 6 Mile $.30Waiting Time (per hour) $22.00 MAYOR COONTZ OPENED THE PUBLIC HEARING.The Revenue Manager gave the report outlining the State vehicle code requirements.Bill Craig, Manager for the Coast Yellow Cab Cooperative, 17300 Mt. Hermon Street, Fountain Valley, eXplained how the rates would effect the average rider.THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING.MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the request from Coast Yellow Cab Cooperate for the fee increase as noted on Agenda item 13.3.Page 21 CITY COUNCIL MINUTES JANUARY 24, 1995 14.PLANNING AND ENVIRONMENT TAPE 1778 14.1 APPEAL OF A ZONING ADMINISTRATOR DECISION TO DENY ADMINISTRATIVE ADJUSTMENT 94-06, DESIGN REVIEW BOARD APPEAL NO. 3-94, APPLICANT/APPELLANT DANNY F. SHIELDS: (A4000. 0)Request by Danny F. Shields to permit reconstruction of a residential single-car garage and a second-story addition proposed as a workshop, with a view balcony. This project is categorically exempt from environmental review pursuant to Section 15303 of the State of California Environmental Quality Act (CEQA) Guidelines.The Director of Community Development reported the piece of property is zoned R-2 and is approximately 3100 sq. ft. in size. It is currently occupied by a single family residence with a one car garage. Construction on the project began before plans were prepared or plans were issued.There has been a stop work order issued on June 22, 1994. Plans were submitted in July, 1994.It was determined upon submission of the plans there were a number of minor approvals required to allow the plan to be approved. Administrative Adjustments were required due to the shallow depth of the lot, 45 ft. deep lot. The setback dimension from the garage door to the street property line is 16 ft. as opposed to the normal 20 ft. as required by ordinance. The rear setback is 9 ft. as opposed to lOft. required. The rear is a 10% reduction, and the front is a 20%reduction. It was determined 50% of the garage was being removed so a demolition permit was required.The DRB reviewed and denied the application on October 20, 1994. The Zoning Administrator also denied the Administrative Adjustments. These two decisions were appealed to the Planning Commission which also denied the project.Hearing notices were mailed to the applicant and the architect as well as adjacent property owners.Neither the applicant nor the architect were present to address the project.The Director of Community Development was asked if the project was denied by Council could it be torn down? It was recommended if Council denies the project, the property owners would be required to return the property to its original state (put the one car garage back the way it was). MOTION SECOND AYES Murphy Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to deny the appeal.15. ORAL PRESENTATIONS - None Page CITY COUNCIL MINUTES JANUARY 24,1995 16. ADJOURNMENT NOTE: The City Council met in Closed Session at 9:30 p.m. to discuss the following Closed Session items: Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956. 9( a): City of Orange et al. vs. Donald D. Greek, et al. Court of Appeal, Fourth District, Case No. G013897.Conference with Legal Counsel - anticipated litigation.Initiation oflitigation pursuant to Government Code Section 54956.9(c)one potential case)NOTE: Councilman Spurgeon left the Closed Session at 10:00 p.m.MOTION SECOND AYES ABSENT Murphy Barrera Murphy, Barrera, Mayor Coontz, Slater Spurgeon The City Council adjourned at 10:25 p.m. to an Adjourned Regular meeting, January 31, 1995 at 4:00 p.m. to discuss Goals and Objectives.7 I71~M~~~MARIL . JE N; CMC CITY CLERK L.;U:. /? ~JOANNE C. COONTZ MAYOR Page 23