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02-14-1995 Council MinutesAPPROVED BY THE CITY COUNCIL ON CITY COUNCIL MINUTES OF A REGULAR MEETING MARCH 14, 1995. ORANGE, CALIFORNIA FEBRUARY 14, 1995 The City Council of the City of Orange, California convened on February 14, 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 Councilmember Dan Slater 1.2 ROLL CALL PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 1.3 APPROVAL OF MINUTES Adjourned Regular Meeting January 24, 1995.MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Regular Meeting January 24, 1995. MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Adjourned Regular Meeting January 31, 1995. MOTION - Spurgeon SECOND - Coontz AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Adjourned Regular Meeting February 2, 1995.MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater PAGE 1 CITY COUNCIL MINUTES FEBRUARY 14, 1995 1.3 APPROVAL OF MINUTES (Continued) ACTION: Approved. Adjourned Regular Meeting February 7, 1995. MOTION - Barrera SECOND - Spurgeon AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.1. 4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS - Noue 1.5 PROCLAMATIONS - None 2. CONSENT CALENDAR 2.1 Declaration of City Clerk Marilyn J. Jensen declaring posting of City Council agenda of a regular meeting of February 14, 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.REMOVED AND HEARD SEP ARATEL Y)2.3 Request Council accept Loma Street right-of-way from Southern California Edison Company. (D4000.0) FISCAL IMPACT: None. Nick Lall, 6231 Mabury, commented it would be a bad decision to open Loma Street until all other improvements are made.The Director of Public Works/City Engineer reportedthe projected opening date for Loma Street is February 22, 1995 with Via Escola opening on March 1, 1995. The Santiago Canyon project is expected to commence within the near future. Interim traffic control on Loma Street will be installed and will be replaced with traffic signals by summer. A two- lane roadway can accommodate up to 10,000 cars per day.Bob Bennyhoff, 10642 Morada Dr., spoke in favor of opening Loma as soon as possible.Page 2 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.REMOVED AND HEARD SEP ARATEL Y)2.4 Request Councilapprove agreement with Jeffers, Wilson & Shaff at the rate of $210.00 per hour for legal services relating to City's investment policy. (A2100.0.Agr.2247.1)FISCAL IMPACT: There are funds available in Account No. 100-1204-426700-0000 Other Professional and Consulting Services). Nick Lall, 6231 Mabury Ave., asked why Council was approving this agreement at this time since the work has already been done. The costs should have been reviewed with estimates on hours prior to having the work commence. Mr. Lall further commented there is no dollar amount under Fiscal Impact which should be more specific. The City Manager reported in December, it was felt the Investment Policy needed to be reviewed because of the County bankruptcy. Mr. Jeffers was contacted because he had done work with the City. Mr. Jeffers was part of the process of the City's current investment policy. According to the Orange Municipal Code the City Manager has the right to contract up to a certain amount. The prerogative was taken and this item is to confirm that decision. The City Attorney opined this agreement is on an as needed basis and the City Attorney can control the services that are requested. Also, the agreement has a provision to terminate for any reason at any time. Budget constraints limit the amount of services. Mr. Lall asked if the fiscal impact would be from 0 to $30,000? The City Manager replied in the affirmative. MOTION - Barrera SECOND - Slater AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.5 CLAIMS FOR DAMAGES FROM: (C3200.0)a. Dion J. Mitchell b. Steve and Diana Enright c. Magda Alfonzo d. Levon Atarian e. L.A. Fitness Page 3 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) FISCAL IMPACT: None. ACTION: Denied claims and referred to City Attorney and Adjuster. REMOVED AND HEARD SEPARATELY) 2.6 Request Council exempt Christian Learning Center-Time Release Trailer from street sweeping citations for the remainder of this school year, and the Police Department furnish them with the City's street sweeping schedule so they can arrange their schedule to comply with the Street Sweeping Ordinance beginning with the new school year in September,1995. (S4000.S.3.1. 3)FISCAL IMPACT: None.Barbara DeNiro, 1118 E. Adams, asked how long the City had been ticketing the trailers.Police Chief Robertson indicated the trailers have received two citations. When the Police Department took over the Street Sweeping Program the trailers received the tickets. The Police Department is working with the Christian Learning Center to plan their program and park the trailer on non-street sweeping days beginning next school year.Chief Robertson was not sure if any other entity was exempt except for the Post Office.Any requests for exemptions will go through Council. Mayor Coontz requested the Police Chiefkeep Council abreast of this situation. They may have to opt for another solution.Mrs. DeNiro commented the Orange Unified School District has been trying to get rid of this program for years and it is her hope this situation is not part of that endeavor.MOTION - Spurgeon SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.REMOVED AND HEARD SEPARATELY)2. 7 Request Council approve issuance of grading and hauling permits to allow grading and import of fill material for Tract 14752, located along Santiago Creek between Tustin Street and Cambridge Street. (T4000.0)FISCAL IMPACT. None.MOTION - Murphy SECOND - Slater AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Moved to continue this item to the 7:00 p.m. Session, Item 13.3.Page 4 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY) 2.8 Request for the installation of an 'All-Way' STOP control device at the intersections of Walnut Ave. at California St., and at Walnut Ave. at Maplewood St. (S4000.S.3. 3)FISCAL IMPACT: None.Mayor Coontz recognized the following speakers voicing their concerns regarding traffic and speeding:Vivian Cuddhey, 1212 E. Walnut Bea Herbst, 1435 E. Walnut Toni Monzon, 1275 E. Walnut The Director of PublicWorks/City Engineer explained the criteria for the all way stop signs indicating stop signs do not control speed. The most effective means to deal with speeding is more law enforcement.Ms. Monzon asked there were three stop signs from Walnut to Glassell?Councilman Slater explained the stop signs were school generated (Orange High School and Chapman University) and were in conjunction with crosswalks.Council discussed the speeding problem and indicated this would be a cooperative effort between the Traffic and Police Departments.Carole Walters, 534 N. Shaffer, commented as oflast week there are only two stop signs on Walnut from Cambridge west to Glassell. The stop sign on Grand has been removed.MOTION - Barrera SECOND - Slater AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Denied. 2.9 Request for the installation of a '3-Way' STOP control device at the intersection of Calle Grande and Calle Baja. (S4000.S.3.3)FISCAL IMPACT: Provided in the department's normal operating budget using #250 Traffic Safety funds.Mayor Coontz recognized the following speakers opposing the stop control device due to minimal traffic generated from the nine homes in this area:Page 5 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) William Earnest, 13 8 Calle Alta Rollin Mahoney, 307 Calle Grande Mary Fox, 146 Calle Alta Their comments focused on the cutting of shrubs which impede vision at the intersection. The shrubs are on private property and it was suggested the City contact the property owner to trim tl1e shrubs thereby improving the site line. Speaking in favor: A. T. Reid, 321 Calle Baja The Director of Public Works/City Engineer reported based on traffic volumes, there is no need for stop signs at this location. However, there is one overriding consideration, the adequacy of sight distance at the intersection and tl1e public liability which is imposed. Staff considered alternatives to establish a better sight distance through moving the limit line further into the intersection, trimming the shrubs, however under the code there is no ability to compel the property owner to trim or remove the shrubbery. There is also a wrought iron fence at that location and because of the angle of the sight distance from the intersection, it can appear solid and is part of tl1e visual obstruction. The exposure at this location is very low which is why the safety record is good. The other option is to acquire from the property an easement or right-of-way for sight distance and remove the fence and shrubbery and incorporate the sight distance triangle area.The Traffic Engineer indicated the former property owners were contacted and they were opposed to any cutting. However, the property was sold and staff has not been able to make any contact with the new property owners.The City Attorney opined the City would need some sort of permanent easement through the property to obtain a permanent solution.MOTION - Murphy SECOND - Coontz AYES - Murphy, Barrera, Mayor Coontz, Spurgeon NOES - Slater ACTION: Moved to continue this item this item to February 28, 1995 meeting. During the interim period staff is instructed to go out and solicit contact with the property owners to try and provide either a temporary or permanent solution, but witl1 an alternate/permanent solution for the right of vision to the intersection of Calle Baja and Calle Grande. Page 6 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) 2.10 Request for the installation of an 'All-Way' STOP control device at the intersection of Walnut Ave. and Emerald St. (S4000.S.3. 3)FISCAL IMP ACT: None.ACTION: Denied.2.11 Request for the installation of an interim '3- Way' STOP control device at the intersection ofLoma St. and Via Escola. (S4000.S.3. 3)FISCAL IMPACT: Provided in the department's normal operating budget using # 250 Traffic Safety funds.ACTION: Approved.2.12 Request for the installation of a traffic signal at the intersection of Chapman Ave. and Eckhoff St. (S4000.S.3. 3)FISCAL IMPACT: None.ACTION: Denied.2.13 Request for the removal of on-street parking from the west side of Santa Ana Canyon Road northerly of the northbound SR-55 Freewayon-ramp. (S4000. S.3.1.1)BUDGET IMP ACT: Provided in the department's normal operating budget using # 250 Traffic Safety funds.ACTION: Approved.2.14 Request Council approve and authorize the award of Bid No. 945-13, 6" & 8" water mains. To Steve Casada Construction, Anaheim, CA, in the amount of $104,237 and reject all other bids. (A2100.0.Agr.2345)FISCAL IMP ACT: Sufficient funds have been allocated in Account No. 310-6057-474501-1812 (Water Main Replacement).ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.15 Request Council approve and authorize the award of Bid no. 945-23, five half-ton pick-up trucks, one one-ton crew cab pick-up and one one-ton cab and chassis, to Villa Ford,Orange, CA, in the amount of$121,208 and reject all other bids. (A2100.0. Agr.2346) FISCAL IMPACT: There are sufficient funds in Account No. 720-5023-472102 (Vehicle Replacement Fund). CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEP ARATELY) 2.16 Request Council authorize the operation of bingo games at City-owned facility utilized by Orange Elderly Services (O.E.S.), pending approval of the application process and direct Staff to proceed with the review ofO.E.S.'s bingo application. (C2500. N)FISCAL IMPACT: Possible budget savings due to anticipated revenues generated through bingo operation.Barbara DeNiro, 1118 E. Adams, asked why this request was on the Consent Calendar before the application would be approved. Mrs. DeNiro expressed opposition to the smoking in a City building and the playing of bingo for money. It was asked about additional fire hazards and insurance premiums regarding smoking in the building, as well as the ventilation system's performance.The Director of CommunityServices/Library indicated this request is for Council to decide whether bingo can be operated at a City facility.Keith Regan, Executive Director of the Orange Senior Center addressed the smoking issue. There is no City ordinance regarding smoking in city buildings oilier than the Council Chambers. AB 13 regarding smoking in public buildings indicates OES would be exempt with bingo because it is for gaming purposes. The plan is for bingo to operate on Friday nights. There is ventilation in the air conditioner which will filter the smoke out of the building. There will be smoking and non smoking rooms. Rio and the Temple have successfully operated bingo with smoking and non- smoking rooms.The City Attorney reported there is a new State law regarding smoking. Research would have to be conducted as to how it would apply to the senior citizens center.MOTION - Coontz SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAIN Slater ACTION: Moved to authorize the departments to proceed with the review of the OES bingo application and answer the questions the community and Council has asked and any other questions that need answers.2. 17 RESOLUTION NO. 8442 A Resolution of the City Council of the City of Orange approving Lot Line Adjustment LL 94-6 adjusting a lot line of certain real property situated at Parcels 1 and 2 of Lot Line Adjustment 90-9. (C2500.M.16. 1)ACTION: Approved.Page CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) 2.18 RESOLUTION NO. 8443 A Resolution of the City Council of the City of Orange finding that a restaurant/retail use of structure at 182 South Orange will have no greater impact than previous church use. C3300.0) Carole Walters, 534 N. Shaffer, expressed concern regarding the hours of operation; 6:30 a.m. to 11 :00 p.m. daily, and its effect on the surrounding neighbors. Also expressed was the concern for not enough parking. Mrs. Walters further asked why Councilman Slater did not give a reason for abstaining from agenda items and leaving the podium. Councilman Murphy explained a condition of approval was a review process within six months ofthe restaurant and its operations. The City Attorney opined that generally if there is a financial conflict of interest because of property or source of income, it should be part of the record. MOTION - Murphy SECOND - Coontz AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAIN - Slater ACTION: Approved.REMOVED AND HEARD SEP ARATEL Y)2.19 RESOLUTION NO. 8444 A Resolution of the City Council of the City of Orange upholding the recommendation of the Planning Commission of the City of Orange and granting a Conditional Use Permit to allow an accessory second dwelling unit in an R-1 district upon property situated at 390 North Maplewood Street. ( C3300.0)Conditional Use Permit 2083-94 William and Genevieve Southgate and Ruth Barrios MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon ABSTAIN - Slater ACTION: Approved.Page 9 CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) 2.20 RESOLUTION NO. 8449 A Resolution of the City Council of the City of Orange upholding the recommendation of the Zoning Administrator of the City of Orange and granting a Conditional Use Permit to allow off-sale of beer and wine upon property situated at the southwest corner of Chapman Avenue and Prospect Street. (C3300. 0)Conditional Use Permit 2071-94 AI Moussavi; " Chapman Texaco" ACTION: Approved.2.21 RESOLUTION NO. 8450 A Resolution of the City Council of the City of Orange upholding the recommendation of the Planning Commission of the City of Orange and denying an Administrative Adjustment to allow reductions in minimum driveway length, minimum garage depth and minimum distance to rear property line and denying an appeal of a Design Review Board denial of the project. ( A4000.0)Administrative Adjustment No. 94-06 Design Review Board Appeal No. 3- 94 Danny F. Shields ACTION: Approved.2. 22 RESOLUTION NO. 8451 A Resolution of the City Council of the City of Orange declaring its intention to order certain changes and modifications in a special assessment district and setting public hearings. (Tl100.0.1) Assessment District No. 90-1 ACTION: Approved. 2.23 RESOLUTION NO. 8456 A Resolution of the City Council of the City of Orange approving a transfer ofthe controlling interest in the cable franchise granted to Time Warner Entertainment Company, L.P., dba Cablevision of Orange, to Time Warner Entertainment-Advance/Newhouse Partnership, dba Cablevision of Orange. (Fll00. CITY COUNCIL MINUTES FEBRUARY 14, 1995 2. CONSENT CALENDAR (Continued) MOTION SECOND AYES Spurgeon Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Items 2.3, 2.4, 2.6, 2.7 (heard at 7:00 P.M.), 2.8, 2.16, 2.18 and 2.19 were removed and heard separately; all other items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ Non-Agenda Item Councilwoman Coontz reported as a member of the Waste Management Commission of the County of Orange, representing the League of Cities, throughout the County there have been problems with scavenging. Councilwoman Coontz remarked she would appreciate it if there was a record of this problem in a City newspaper or through a press release that scavenging has become a profitable business. The scavengers are selling products which should go to the City's Material Recovery Facility. Educational information needs to get to the residents so they understand it is against the law and punishable. The Police Department is trying to address this with cooperation from the Public Works Department. The City Manager has been asked to investigate the changes to the City policy regarding residents placing their recycles out after 6:00 a.m. A meeting is scheduled for March 15, 1995 in the City of Garden Grove with all the representatives from Orange County cities to discuss the extent of this problem and the program.TAPE 2578 3.1 Report on County Investment Pool from Mike Jeffers (Continued from 1-24-95). C2500.F) Mr. Jeffers gave the following report: "We have completed our compliance report to the City and submitted it on the 13th. I understand it has been made available to you and available to concerned citizens of the City. I would like to summarize the report and spend some time commenting on the executive summary which you also have, which addresses the measures we have recommended in response to the motions adopted by the City Council at the meeting in January 10th and are designed further to strengthen and improve the City's management ofits investments. The report deals with a number of issues first of which is an analysis of the compliance with the City's Statement ofInvestment Policy and the responsibility in general for the bankruptcy of the County Investment Pool. We have found that on the City's part, the investment in the pool was legally authorized. The investment was made in compliance with the City's statement of investment policy and we believe ad we recorded earlier and much of what I'm saying on this issue was discussed at the earlier meeting, we found nothing to substantially change those findings, but Page 11 CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) we found that the principle responsibility lies with the County Treasurer in his pursuing his investment policies and not fully or adequately disclosing them to the public. I also believe the fair share of the blame lies with the Board of County Supervisors in failing to exercise its supervisory responsibilities. We also believe and found that the City was justified, along with 185 other municipalities in relying on the public investment reports of the County Treasurer that the fund was in sound financial shape and was a safe and prudent investment. I want to point out too that in re-reviewing these documents, the most recent one was the County Treasurer's 1993/ 94 Fiscal Year Annual Report which was published on October 26, 1994, less than two and onelhalf months before the actual bankruptcy where he again reiterated that the pool was a safe and prudent investment, stress the soundness of his investment practices based in large part on reverse repurchase investment practices, pointed out that the reverse repurchase investment practice policy had produced a very substantial boost to the yield of the fund for this most recent year and for the two previous years. There was nothing in that report to indicate that the County was facing a liquidity crisis, an evaluation crisis of the portfolio that now know from reading the public's reports of the press were well known at that time.These were not disclosed to the City nor to the other municipalities and we believe they were entitled to justifiably rely on the statements in the financial report that the County Pool remained a safe and prudent investment for the participating municipalities.In addition to the report, we then moved on to focus on actions by the City to pursue its remedies and recover the amount it has invested in the pool. I'm pleased they have made, or at least a certain portion of the funds have been turned over to the City as I understand it at this point. We have recommended rather than pursue independent legal remedies, the City continue to participate along with the creditors committee and follow the recommendations of the Council for the Creditors committee who seem to be doing a fine job in monitoring the actions and that in general, you continue to follow to participate in the creditor's committee decisions with respect to recovering your money from the County Pool. At this point we see no need for having independent outside counsel, whether it is us or someone else threatening independent legal actions or otherwise actively participating against the County Pool. the Creditor's Committee Counsel seems to be doing that job for you.Another very important part of our analysis was, particularly at the Mayor's request and other members of the Council, is to analyze the present investment, particularly those involved in the LATH pool that the other pooled investment the City participates in. I will comment on that in a minute when I get to the recommendations in the executive summary. But as early as this morning, or as late as this morning, I completed my discussions with the administrator of the LAIF pool. In my judgment it appears to being operated in accordance with its published guidelines regarding it reverse repurchase agreement investment strategies and it does not seem to me that there are any undue risks in the operation of the LATH pool.The LAIF pool is the pool operated by the State Treasurer as a pool investment vehicle for municipalities and other governmental agencies within the State of California. It operates under the direction of the Treasurer of the State. It has published investment guidelines. They have put Page CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) out an additional memorandum as a result of the County bankruptcy specifically dealing with the pool's investment policy regarding reverse repurchase agreements. The City has I believe around 15 million invested in the LAIF pool and it is one of the specifically authorized investment vehicles for the investment of the City's funds. We have made a number of recommendations which I hope are fully responsive to the City Council's resolutions adopted at the January 10th meeting and other findings that we came up during the course of our investigation which are designed to improve the City's investment policies and certain improve the management of its investment funds. I would like to take a minute to summarize those which I have set forth to you in an Executive Summary. We agree with the recommendation that a new independent investment advisory committee of financial experts be established to advise and consult in the City's investment program. I'm please to report that that effort is well underway, that the selection committee is holding initial meetings. I think Mr. Dixon can bring you up to date further on it. That is a very sound suggestion and in this day and age where you have a climate of sophisticated financial instruments we think the idea of having a panel of independent experts who can advise and consult the Treasurer and City Council on the City's investment practices is a very sound one. We've also recommended continuation of the current Advisory Committee which is really an internal committee, consisting of the Finance Director, the Treasurer, the City Manager, we've suggested that you rename it the investment oversight committee. It has performed it's functions we believe in a very responsible manner. Its primary function is to review the actions of the Treasurer in terms of his investment practices on a montWy basis and determine that the Treasurer's investments were in fact made in compliance with the Statement ofInvestment Policy. They do review each transaction, there are check lists in the Investment Policy which they review and they keep minutes and it makes specific findings on a quarterly basis. The Investment Oversight Committee formerly the Investment Advisory Committee should be given credit also for coming up with the decision when inquiries were raised in early 1993 to reduce the City's investment in the County Pool below $33 million or 25% to $20 million or 15%, it was the Investment Oversight Committee that came up with this suggestion and was in fact adopted by the City Council. On that subject, I don't want to sound like I'm trying to avoid it, because our report specifically deals with the fact that there were administrative breakdowns, failure to follow up which led to a failure to completely implement the internal policy adopted which reduced the City's investment down below $20 million. We will deal with the reasons for that basically it was because the City property taxes continued to be automatically deposited to the fund and the 1994 TRAN issue proceeds also went into the fund which raised the investment above the $20 million limit up to the $28.2 million that was at the time of the bankruptcy. The principle cause of that, we believe, was the absence of the City Treasurer due to his very serious illness. We have recommended specific measures to improve the accountability or the procedures for replacing the City Treasurer in the case of absence or illness. Page 13 CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) We believe that along the lines of increasing investment expertise that the City should adopt an appointed Treasurer rather than an elected Treasurer. In that manner the City can establish qualifications and hire/employ a person with the necessary financial expertise that you have to have in the sophisticated economic and financial climate that we live in today. Under the present system the City has no effective control, there are not statutory controls over the qualifications of an elected Treasurer other than he be a resident of the City. An appointed Treasurer can set up qualifications necessary for financial investment expertise and the Treasurer would be fully accountable to the Council replaceable at the Council's discretion and also the replacement procedures on a temporary basis in the event of illness or absence would be established also. Along those lines, we suggest that the City establish written procedures for the performance of the duties of the Treasurer and Finance Director in the case of extended absences or leave. Obviously that was one of the problems with the administrative breakdown that the City experienced last Fall. The City should also establish financial expertise qualifications for the appointment of a Deputy Treasurer so that person would possess the necessary financial investment expertise to perform the duties of the Treasurer in the absence of the Treasurer. We think these measures would improve the accountability procedures which led to the partial breakdown this last Fall. Another action to the City is taking is a complete review of the current investment portfolio. I've had meetings with the City Finance Director and I'm pleased to say that review is well under way and I believe she has some outside expertise available to her also and that will include a complete review of every investment in the current City's investment portfolio including a market value evaluation of each investment. As part of that review, the LAIF pool investment will also be included. I have spent a fair amount oftime on the LAIF pool because that is an area where the City has $15 million invested and again it is under essentially independent management. It is important enough that we have included the investment guidelines and the investment policies of the LAIF pool as an addendum to this report, specifically those dealing with their reverse repurchase strategy. It is a very limited one and we certainly haven't undertaken an audit of the LAIF pool, I have reviewed the montWy report on a three-month basis with the LAIF administrator and it appears the reverse repurchase agreement investments are being made in compliance with the guidelines of the LAIF pool. They are set up in such a manner as to avoid any undue risk ofloss, essentially the investments are matched to the maturities of the borrowings which means that the pool can measure its gain on the transaction at the time it makes the investment.We recommend further that we continue to maintain the separate offices of Treasurer and Finance Director. That has been a historic position of the City of Orange and we think it operates as a natural check and balance on the dynamic between the Finance Director who is primarily concerned with the City's operating budget and the Treasurer who is concerned with the management investment of the City's funds. We suggested in future instances they closely confer Page CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) with each other at the advance of any bond offerings involving the reinvestment of bond proceeds such as the 1993/94 TRANS because it should be the Treasurer's decision as to what is the most prudent investment with the bond proceeds. That's a summary of the actions recommended in the report. We suggest finally the City's Statement ofInvestment Policy be revised to incorporate the changes that are approved by the Council. I think this completes the large part of my firms role in this assignment. We will be available to assist in the revisions in the Statement ofInvestment Policy as you request. We will be available to assist in other areas at your request and discretion. It is our intent that this report deals fully with the City's role in connection with the investment in the Orange County Pool and I hope that it fully identifies and answers your concerns and most importantly that it suggests a number of ways to improve and strengthen the City's investment policies for the future. " The City Manager reported he had met with Mr. Jeffers and reviewed the qualifications of applicants for the Oversight Investment Committee. They have been contacted and interviews will begin the first weekend in March. When this process is complete, the interview committee will submit those names to the Council for appointment. The interview team is made up of the City Manager, Mr. Jeffers, Mayor Coontz and two citizens at large. There are some suggested activities and responsibilities that the Oversight Committee will have based upon the guidelines that have been established, those are recommendations because they can be adjusted by Council, there will be a good committee that will be able to work with the City. The Oversight Committee will report directly to the Council. Mr. Jeffers gave the following answers to questions asked by Councilman Spurgeon regarding the State Pool, LAIF. The LAIF administrators do not engage in any leveraging. The pool guidelines are to limit the reverse repo investments to a total of 10% of the pool and they are all reinvested in short term instruments that are basically matched to the term of the borrowing. They are not borrowing against the reinvested proceeds. The repos are substantially less than 10%, less than half of 10% in terms of the total LAIF portfolio. Mr. Jeffers did not look at the liquidity of the total LAIF investment pool. In general, a substantial portion of the investments appear to be in short commercial paper and CDs. There was not a feeling they were long term investments or there wasn't a risk of substantial market risk because they were long term investments. They seem to be managing that with their investment guidelines and policies. They have no liquidity problems. The LAIF investment guidelines do not invest in inverse floater derivative securities as did the County Pool which magnifY the effect of declining yield, interest rates in a climate of increase market interest rates. They specifically do not invest in those types of securities. Page 15 CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) Councilman Slater asked if Mr. Jeffers had a recommendation on compensation for the Oversight Committee. Mr. Jeffers did not have a specific recommendation, but suggested the City provide indemnification protection for the committee members. Mayor Coontz recognized the following speakers: Carole Walters, 534 N. Shaffer, asked if Mr. Jeffers could be first on the Agenda saving the City money. Bob Bennyhoff, 10642 Morada Dr., asked that the montWy reports list all the securities the City has as shown in the Market to Market. Nick Lall, 1632 Mabury, hopes the report addresses the fact the Council borrowed money to invest in the pool, and the fact that Council voted to increase the participation in the County Pool. The fact that Council has adjusted the policy over the last few years, and the only adjustments have been to increase and borrow money to put in the County Pool, should be looked at. The following motions were given: MOTION SECOND AYES Coontz Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to establish a new independent Investment Advisory Committee of financial experts to advise and consult on the City's investment program and make regular quarterly reports to the Council. It indicates three independent members selected by the council with the Treasurer and Finance Director as ex-officio members. These people to be qualified people to assist in this endeavor.MOTION SECOND AYES Mayor Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that the current Investment Advisory Committee to be redesignated the Investment Oversight Committee and to continue its role in monitoring the Treasurer's compliance with the Statement ofInvestment Policy on an ongoing basis. The Committee consists of the Treasurer,City Manager and the Finance Director and reviews each investment for compliance with a statement of investment policy. Next regular quarterly reports to the Council.MOTION SECOND Mayor Coontz Barrera Moved to submit for approval by voters the proposal to change from an elected Treasurer to an appointed Treasurer.Page 16 CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) Discussion: Councilman Spurgeon discussed the lack of funds to promote the measure and the lack of past support. The City Clerk reported the next available election would be the consolidated election with the Orange Unified School District. The deadline for submitting the ballot measure to the County is in August, 1995. There might not be enough time to market the proposal. There is a March, 1996 primary in the State of California, and the deadline is around the first of December, 1995. Discussion: Councilman Spurgeon expressed concern that this issue has been on the ballot twice before and the election of a City Treasurer has failed. Mayor Coontz withdrew the previous motion and gave the following motion: MOTION SECOND AYES Coontz Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to direct the City Manager to return to Council at an early date with proposals to submit for approval the question of the directly elected Treasurer, indicating timelines and cost assessments.MOTION SECOND AYES Coontz Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to continue the complete review of the current Investment Portfolio including a current valuation (Market to Market) an interest rate and yield determination on each security and investment portfolio.MOTION SECOND AYES Coontz Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to review the State LAIF pool and any other investment pool to see that there is consistency with the new policy, and that the pool is being managed in accordance with the published investment policies particularly with regard to reverse repurchase agreement transactions.MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Page 17 CITY COUNCIL MINUTES FEBRUARY 14, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) Moved to establish written procedures for the performances of the duties of the Treasurer and Finance Director in the event of extended absence or leave and adopt a line of succession for the appointment of the Deputy Treasurer with necessary financial investment expertise to perform duties ofthe Treasurer. MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to continue to maintain separate offices of Treasurer and Finance Director as a check and balance on separate functions of each office including the coordination of the two offices in the early planning stages of any future bond issuance.MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to revise the City' s Statement ofInvestment Policy to incorporate the recommended changes approved by the Council including reformatting the Treasurer's MontWy Investment Reports as indicated in this report.MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to bring back dates for the expected completion of these recommendations.NOTE: The City Manager instructed the City Clerk to place this item on the February 28, 1995 Agenda.RECESS: The City Council took a five minute recess.3.2 Appointment of the following people to the Orange Public Library Board of Trustees: (C2500.I.l)Kay Massa, term to expire 6/30/98, Charles Hukari, term to expire 6/30/96 MOTION SECOND AYES Approved.Coontz Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 4. REPORTS FROM COUNCILMEMBERS - None Page 18 CITY COUNCIL MINUTES FEBRUARY 14, 1995 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS 5.1 Accept with regrets the resignation of Pat Buttress from the Board of Orange Elderly Services, Inc. (not a Maddy Act committee). (OR1800.0.21) MOTION SECOND AYES Approved. Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater 6. ADMINISTRATIVE REPORTS 6.1 Review of Council commissions and standing committees. (OR1800.0)FISCAL IMPACT: None.Carol Walters, 534 N. Shaffer, complained that she is upset that the Old Towne Steering Committee is being banned. If there is no need for the Old Towne Steering Committee then Dan Ryan should go and the City could save $60,000 a year. Mrs. Walters also requested a Councilmember attend a DRB meeting because they are getting their orders from Old Towne Preservation Association. Mrs. Walters further commented people involved with Pitcher Park are raising funds. Regarding Pitcher Park, Mayor Coontz indicated the committee is attempting to begin a foundation to raise funds.The Director of Community Development indicated the role of the Design Review Board will change during the Zoning Code update process, which is scheduled to go before Council for review and adoption.MOTION SECOND AYES Slater Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Approved all committee changes except the Old Towne Steering Committee MOTION - Slater Moved that the Old Towne Steering Committee sunsets by June, 1995.Motion died for a lack of second.MOTION SECOND AYES NOES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon Slater Page 19 CITY COUNCIL MINUTES FEBRUARY 14, 1995 6. ADMINISTRATIVE REPORTS (Continued) Moved that the Old Towne Steering Committee be sunsetted at June, 1995 or after the completion of the Development Ordinance update decision. 6.2 RESOLUTION NO. 8452 A Resolution of the City Council of the City of Orange adopting a map showing the proposed boundaries ofa special assessment district. (Assessment District No. 94-1) (TlI00. 0) MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.RESOLUTION NO. 8453 A Resolution of the City Council of the City of Orange initiating proceedings and ordering the preparation of an Engineer's "Report" for certain assessment district proceedings. (Assessment District No. 94-1) MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.RESOLUTION NO. 8454 A Resolution of the City Council of the City of Orange, approving the Engineer's "Report" for proceedings for the formation of an assessment district. (Assessment District No. 94-1)MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.RESOLUTION NO. 8455 A Resolution of the City Council of the City of Orange declaring its intention to order the formation of an assessment district and to levy and collect assessments, and setting a time and place for public hearings thereon. (Assessment District No. 94-1)Page 20 CITY COUNCIL MINUTES FEBRUARY 14, 1995 6. ADMINISTRATIVE REPORTS (Continued) MOTION SECOND AYES Barrera Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.7. REPORTS FROM CITY MANAGER - None 8. LEGAL AFFAIRS - None 9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS NOTE: Mayor Coontz recognized speakers to be continued to the end of the 7:00 P.M.Session under Oral Presentations.11. RECESS The City Council recessed at the end ofthe 7:00 p.m. session to a Closed Session (see page 27).7: 00 P.M. SESSION 12. INVOCATION Stuart Waldrip, President of Orange Stake of the Church of Jesus Christ of Latter Day Saints.12.1 PLEDGE OF ALLEGIANCE TO THE FLAG Given by Councilmember Dan Slater 12.2 ANNOUNCEMENTS - None 12. 3 INTRODUCTIONS - None 12.4 PROCLAMATIONS - None 12.5 PRESENTATIONS - None 13. PUBLIC HEARINGS TAPE 6558 13.1 TRANSPORTATION SYSTEM IMPROVEMENT PROGRAM, AREAS BAND C, CITY OF ORANGE:The Public hearing on petition by the City of Orange to consider the adoption of a revised project list and fee structure for the City's Transportation System Improvement Program (TSIP), Areas B and C has been continued from December 13, 1994 to this time. Area B is generally located Page 21 CITY COUNCIL MINUTES FEBRUARY 14, 1995 13. PUBLIC HEARINGS (Continued) west of the Costa Mesa SR55 Freeway. Area C is generally located east of the Costa Mesa SR55 Freeway. The fee is assessed against new development and redevelopment projects in the City for the purpose of funding transportation system improvements throughout the City. (A2500.0) MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to continue the hearing to a date not certain.TAPE 6613 13. 2 ZONE CHANGE 1173-94, HAYNES & OAKLEY ARCHITECTS REPRESENTING, CHOC REALTY:Time set for a public hearing on petition by Haynes & Oakley Architects to consider a request to reclassifY a property from O-P (Office Professional District) to poi (Public Institution District)zone. Subject property is located at 455 South Main Street (Children's Hospital of Orange County). ( ZI500.0)NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines, Section 15305.MAYOR COONTZ OPENED THE PUBLIC HEARING.The Director of Community Development gave the presentation and reported the Planning Commission recommended approval.THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. 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 15305.MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Zone Change 1173-94 as outlined in Planning Commission Resolution No.PC-48-94.Page 22 CITY COUNCIL MINUTES FEBRUARY 14, 1995 13. PUBLIC HEARINGS (Continued) TAPE 6753 13.3 ZONE CHANGE NO. 1174-94, TENTATIVE TRACT MAP 15053,CONDITIONAL USE PERMIT NO. 2088-94, VAN DAELE DEVELOPMENT CORPORATION:Time set for a public hearing on petition by Van Daele Development Corporation to consider Zone Change No. 1174-94 a request for modifications to development standards contained within the Sycamore Crossing Planned Community Text; Tentative Tract Map 15053 a request to subdivide the subject site into 44 lots for the phased development of a 160 dwelling units; and Conditional Use Permit No. 2088-94 to allow the project to be developed as a Planned Unit Development and the creation oflots without direct access to public streets. The approximate 18 acre site is located on the north side of Santiago Creek between Tustin Street and Rosewood Avenue (part of the former Santiago Golf Course property). (ZC1500.0)NOTE: The environmental impacts of this project have been evaluated under previously certified Addendum to Environmental Impact Report No. 1143.MAYOR COONTZ OPENED THE PUBLIC HEARING.The Director of Community Development gave a brief history of the project. The proposed project shows a reduction in the number of units, from 240 condominium units to 160 detached single family units. All units will be detached single family, there will be no attached condominium or townhouse units within the project. This is consistent with the low-medium plan designation and the zoning approved in 1992. The units will be located on individually owned parcels of property and the lots will range in size from over 3,000 sq. ft. to over 7,000 sq. ft. The average lot sizes are approximately 3700 sq. ft. in area. The homes will be two-story and range in size from 13,083 sq. ft. to 19,076 sq. ft., and include two car garages. The residential neighborhood will be a gate guarded community with private streets. Proposed is a common recreation area located within the development and includes a tot lot and swimming pool. The proposal includes a 40 ft. rear setback at the west end of the project where the new homes will abut the adjacent existing single family neighbors.The Planning Commission held a public hearing and added conditions, an additional amount of landscape screening to protect the existing single family neighborhoods from view intrusion from the two-story residential units. With the conditions, the Planning Commission recommended approval.Mayor Coontz announced information was received by Council regarding the Santiago Creek, and it was clarified that the creek was not a part of this application.Speaking in favor:Steven King, representing Van Daele, 2900 Adams Street, Suite C-25, Riverside, gave the project presentation and CITY COUNCIL MINUTES FEBRUARY 14, 1995 13. PUBLIC HEARINGS (Continued) Speaking in opposition: Robert Siebert, 1308 Fairway Dr. Red Merron-Ritzmann and Glenn Ritzmann, 1422 Chalynn Howard Decruyenaere, P. O. Box 1402, Orange, Santiago Creek Greenway Alliance, distributed a letter to Councilmembers Larry Bonhem, 332 S. Olive St.Bill and Carol Shuffield, 1228 Chalynn Ave.Bob Bennyhoff, 10642 Morada Dr.Their concerns were expressed as follows:Hard to have a housing development in this area where there is no access - only road going in and out. Concern with dirt hauling route, access for the trucks, noise, dust, and other problems caused by heavy equipment. Privacy issue - two-story homes will invade privacy of the adjacent single story homes already in the area. Concern about the homeowners landscaping their own backyards and not providing the screening to protect privacy. Instead of the proposed chain link fence, a wrought iron would be more appealing. Tustin Street will be a disaster when the trucks begin moving the dirt. Concern about the brick wall not being there when they start to move the dirt. Concern about the soil material that will be dug up and removed from the Rosewood Tract. Concern that the driveway lengths at 18 ft. is too short, and the rear yard at 15 ft. is too small. It was asked how the soil will be removed from the Rosewood Tract? The Director of Public Works/City Engineer reported the estimated amount of dirt to be moved is 100,000 to 150,000 cubic yards. It is estimated it will take between 9 to 12 months to complete. The recommended length for the haul permit is one year. The number of trucks will vary from 40 to 60 trucks per day depending on the availability offill material. Haul Route One is south bound Costa Mesa Freeway to Chapman Avenue, west bound to Tustin, south bound at the site and return. Haul Route Two is east bound Garden Grove Freeway to Tustin, north bound to the site and the same return. Hours of operation are from 9:00 A.M. to 3:00 P.M. Monday through Friday. There is a requirement for flag control at Tustin Street. It was also reported that during construction the contractor is responsible for dust control and compliance with the City's noise ordinance, and will be measured at the property line. The equipment has to be properly muffled. Any damage that occurs to adjacent private property is the responsibility of the contractor. The hauling permit requires sweeping of adjacent streets, periodic washing of the streets to control the dirt and dust within the existing public rights- of-way. If homeowners experience problems they should call the Department of Public Works, 744- 5545.Page CITY COUNCIL MINUTES FEBRUARY 14, 1995 13. PUBLIC HEARINGS (Continued) The improvements proposed for the drainage channel are intended to deal with the flooding problems and to provide a facility that will provide a reasonable level of protection to the adjacent properties. The City Engineer explained the rehabilitation of the pit at the Rosewood Tract and the soil stability will be the responsibility and certified by the geological engineer. The Director of Public Works/City Engineer explained that given the unique nature of the Rosewood Tract pit being a dump site, there needs to be adequate exploration to determine what is there and a plan of how to dispose of the material, which needs to be a condition of approval. REBUTTAL: Mr. King commented they will comply with all conditions regarding the haul routes and truck hauling. There will be adequate dust control on the site and there will be public works inspections on the site throughout the operation. Regarding the setbacks to the north and west and how it relates to the landscaping, it is Van Daele Development's intent to provide 160 homes, a gated community and nice neighborhood. However Van Daele will work with the City to come up with some type of screening or adequate privacy detection for the north side. It is also the intent to salvage some of the Eucalyptus Trees on the north side. The Director of Public Works/City Engineer suggested a tree inventory of the site be prepared identifYing each tree by species, diameter and location, indicating which ones are to be removed and which ones remain. The grading plan should reflect this inventory. THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that the environmental impacts of this project have been evaluated under previously certified Addendum to Environmental Impact Report No. 1143.MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Zone Change No. 1174-94 as outlined in Planning Commission Resolution No.PC-58-94. MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Page 25 CITY COUNCIL MINUTES FEBRUARY 14, 1995 13. PUBLIC HEARINGS (Continued) Moved to approve Tentative Tract Map 15053 as outlined in Planning Commission Resolution No. PC- 59- 94. MOTION SECOND AYES Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Conditional Use Permit No. 2088-94 as outlined in Planning Commission Resolution No. PC-60-94, adding the following conditions:Conditions to be added:Condition NO.6 The approval by the Public Works Director of the process for the clean up of the Rosewood Tract. The developer be required to submit a mediation plan for the removal of unsuitable fill material from the site subject to the approval of the Public Works Director and Community Development Director.Condition NO.7 - that a tree inventory be conducted on the site with indications as to which trees will be saved and which trees will be removed. Eventual goal of the tree inventory is to be sure there is privacy protection of adjacent single family homes through additions of new trees or protection of existing trees. MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Consent Calendar Item 2.7; the issuance of permits for the grading and import of fill materials for the Sycamore Crossing Project and Tustin Street and the Santiago Creek as delineated in the staff report.14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Bob Bennyhoff, 10642 Morada Dr., asked when the Zoning Code update will be scheduled for Council public hearings? The Director of Community Development indicated the Planners are going through the entire document making corrections. It will be presented shortly.Richard Siebert, 1388 N. Kennymead, commented he is interested in the project on Villa Santiago and referred to the agreement with Forest Cities. Mr. Siebert asked for information on the project and has suggestions on other ways of funding rather than spending $6,000,000 of Redevelopment funds.Page 26 CITY COUNCIL MINUTES FEBRUARY 14, 1995 15. ORAL PRESENTATIONS (Continued) The Director of Community Development commented a study session will be scheduled for this project and will inform Mr. Siebert. Howard Decruyenaere, P. O. Box 1402, Orange, expressed concern about the loss of open space along the Santiago Creek. NOTE: Mayor Coontz announced the Study Session scheduled on February 21, 1995 will be rescheduled. RECESS MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Slater ABSENT - Spurgeon NOTE: Councilman Spurgeon did not attend the Closed Session.The City Council recessed at 9:45 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): City of Oran2e vs. County Sheriff. Orange County Superior Court Case No. 72 97 18 b. Conference with Legal Counsel - anticipated litigation. Initiation oflitigation pursuant to Government Code Section 54956.9(c) ( two potential cases)c. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session.16. ADJOURNMENT MOTION SECOND AYES ABSENT Murphy Barrera Murphy, Barrera, Mayor Coontz, Slater Spurgeon The City Council adjourned at 10:25 p.m. 1/7~ 3c~MARILYN J~S ,~C CITY CLERK l.JOANNE C. COONTZ /MAYOR .~v Page 27