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09-26-1995 Council MinutesCITY COUNCIL MINUTES SEPTEMBER 26, 1995 The City Council of the City of Orange, California convened on September 26, 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 Led by Councilman Dan Slater 1.2 ROLL CALL PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 1.3 APPROVAL OF MINUTES Special Meeting - September 6, 1995 MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.Adjourned Special Meeting - September 11, 1995 MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, W..ayor Coontz, Spurgeon, Slater ACTION: Approved.Regular Meeting - September 12, 1995.MOTION - Slater SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ACTION: Approved.1. 4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS Resolution No. 8500 was presented to Richard Block of the Public Works Department,commending him for more than 32 years ofloyal and dedicated service.PAGE 1 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 1.5 PROCLAMATIONS A Proclamation was presented to Sister Suzanne Sassus St. Joseph Health System Foundation, honoring them for their generous donation to Orange Cares. 2.CONSENT CALENDAR TAPE 256 2.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of September 26, 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 Request Council confirmation of warrant registers dated September 8 and 12, 1995. ACTION: Approved. 2.3 RESOLUTION NO. 8520 A Resolution of the City Council of the City of Orange approving the reclassification of one Senior Library Assistant (position #198 at Range 369 - $2246-$2281) to the classification of Librarian I (Range 390 - $2495-$3199); one Senior Library Clerk position #255 at Range 329 - $1840-$2360) to the classification of Library Assistant Range 349 - $2033-$ 2607); and one Library Clerk (position #632 at Range 300 - $1592-2043) to the classification of Senior Library Clerk (Range 329 - $1840-$2360).C2500.I)ACTION: Approved.2.4 RESOLUTION NO. 8521 A Resolutionof the City Council of the City of Orange amending the Fiscal Year 95-96 Budget; approving the reclassification of one Surveyor II (position 373; Range 390 -2495-$3199) to Engineering Technician I ( Range 390 - $2495-$3199) and directing staff to amend the position control system to reflect this change. (C2500.M)ACTION: Approved.2.5 Request from Orange Host Lions Club for permission to conduct a Friendship Festival on the Portola School grounds on October 27, 28, and 29, 1995. (p1300.0.9)FISCAL IMPACT: None. All fees and requirements will have been met prior to the event.PAGE 2 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 2. CONSENT CALENDAR (Continued) Discussion: Carroll Johnson, commented the Friendship Festival raises funds to purchase eyeglasses for blind children. ACTION: Approved. 2.6 Request Council authorize payment of billing from City of Anal1eim for 1-5 Consultant Services and appropriate funds from TSIP unappropriated reserves. (AZI00.0.Agr. 2046)FISCAL IMPACT: Appropriate $15,860.30 to TSIP Area B Fund, Account No. 284- 5011-483300. ACTION: Approved.2.7 Request approval for purchase of land for Metrolink parking lot adjacent to and west of existing Santa Fe Station, running from Chapman Avenue to Palm Avenue. (p2500. 0.1)FISCAL IMP ACT: Funds are available in Southwest Project Area Tax Exempt Redevelopment Fund 924 to be appropriated to 924-9811-485100- 3006 in the amount of 400,000. Additional funding in the amount of $400,000 is available from a state TCI Grant and has previously been appropriated in the DPW Improvement Fund 550-5011-481101-3006.Discussion: Barbara DeNiro, 1118 E. Adams, commented the purchase is $588,000 and asked where the $212,000 went to?The Director of Public Works explained the balance of the funds over the $588,000 is for the design and construction of the improvements to the parking lot for the Metrolink facility. ACTION: Approved.2.8 RESOLUTION NO. 8519 A Resolution of the City Council of the City of Orange approving lot line adjustment LL 95-7 adjusting a lot line of certain real property situated at Lot 19 and Lot C of Tract No.8809. (C2500.M.16.1)ACTION: Approved.2.9 Request Council award Bid No. 956- 06, SP 3143 to B-1 Enterprises Corporation in the amount of $ 129,840.00, for Wheelchair Access CITY COUNCIL MINUTES SEPTEMBER 26, 1995 2. CONSENT CALENDAR (Continued) FISCAL IMP ACT: No impact since Federal ADA Improvement Grant funds have been allocated in Account No. 310-6058-475100-1328 - $143,000 for the contract award,engineering, inspection, contract administration costs and change orders to the contract.ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.10 Request Council approve water service connection agreements for Allen-McColloch Pipeline turnouts OC-67 and OC-69 between the City of Orange and the Municipal Water District of Orange County. ( AZ100.0.Agr. 2280.1)FISCAL IMPACT: None.ACTION: Authorized Mayor and City Clerk to execute agreements on behalf of the City.2.11 Request from Mail Boxes Etc. for a 'median break' on Jamboree Rd. south of Chapman Ave. to provide left-turn access into the Albertson's Shopping Center. (S4000. S.3. 3)FISCAL IMPACT: None.ACTION: Denied.2.12 Request for appropriation of $14,026.35 from Unappropriated Reserves, TSIP Area B _West Orange Funds to be transferred to Account No. 284-5032-483100-0000. The requested appropriation is to pay for signal and street striping work done in conjunction with the construction of FireStation NO. 6 on The CityDrive. (S4000.S.3.3)FISCAL IMPACT: $14,026.35 is available in the TSIP B - West Orange Funds for this appropriation.ACTION: Approved.2.13 Request authorization to approve a Deferred Payment Loan and authorize the Treasurer to prepare a warrant in the amount of $25,000 for Case No. 586. (C2500.G.1.3.3)FISCAL IMP ACT: Funds are budgeted in the Deferred Payment Loan Account, No. 315-6052-811501-0000.ACTION: Approved.2.14 Request Council approve a $30, 000 Small Business Loan to James Harris to assist in meeting economic development objectivesof the Community CITY COUNCIL MINUTES SEPTEMBER 26, 1995 2. CONSENT CALENDAR (Continued) FISCAL IMPACT: Funds in the amount of $30,000 are available to be drawn and transferred from Account No. 310-6042-465702-1290 (CDBG Small Business Loan Program) to Fund 315 (CDBG Loan PrOgranl). The loan account number assigned to this project is 315-6052-840000-20034.ACTION: Authorized Executive Director to execute on behalf of the City.2.15 Request Council approve a $20,000 Small Business Loan to Melinda McKinney to assist in meeting economic development objectives of the Community Development Block Grant Program. (C2500.G.1.3)FISCAL IMP ACT: Funds in the amount of $20,000 are available to be drawn and transferred from Account No. 310-6042-465702-1290 (CDBG Small Business Loan Program) to Fund 315 (CDBG Loan Program). The loan account number assigned to this project is 315-6052-840000- 20033.ACTION: Authorized Executive Director to execute on behalf of the City.2. 16 CLAIMS FOR DAMAGES FROM: (C3200.0)Maria T. Mendoza Jay Photoglou FISCAL IMPACT: None.ACTION: Denied claims and referred to City Attorney and Claims Adjuster.2. 17 Request Council approve allocation of $36,000 from General Fund Unappropriated Reserves for the purchase of emergency medical supplies. (C2500.H) FISCAL IMPACT: Additional appropriation in the amount of$36,000 required from General Fund Unappropriated Reserves.Discussion: Barbara DeNiro, 1118 E. Adams, asked when will the Emergency Transportation System take effect; is this a necessary action; and who gets billed for these supplies?The Acting Fire Chief responded the City can no longer obtain medical supplies from UCI.When the Emergency Transport Program goes into effect, the City will begin charging patients for those supplies and recoup this money. The Emergency Transport Progranl is scheduled to take effect CITY COUNCIL MINUTES SEPTEMBER 26, 1995 2. CONSENT CALENDAR (Continued) 2.18 Request Council approve the purchase of 6 defibrillators in the amount of $49,954.40 from the sole manufacturer/vendor, ZOLL Medical Corporation, for the Fire Department Emergency Transportation Progran1. (C2500.H) FISCAL IMPACT: Funds previously appropriated in Account No. 120- 3022-471301,Prop. 172, Furniture, Machinery, Equipment Additions ($17,954.40) and Account No.125-3015-471301, Emergency Transportation, Furniture, Machinery, Equipment Additions ($32,000).Barbara DeNiro, 1118 E. Adams, asked were these not required before with the Paramedic Service, but needed now? Also an explanation of costs regarding the $36,000 and the $49,000, which were part of the presentation request of August 8th for the loan of 375,000 as well as other costs for the 1995/96 operations, including the operating expenditure of $30, 000 for basic equipment.The Acting Fire Chief reported the purchase of the 6 defibrillators is part of the budget for the Emergency Transport Program. This request is to buy from a sole source in order to have standardization in the Fire Department. According to Federal law hospitals are not allowed to provide medical supplies for emergencyresponse.ACTION: Approved.2. 19 RESOLUTION NO. 8522 A Resolution of the City Council of the City of Orange expressing appreciation to Gilbert Lee Upchurch of the Orange Public Works Department, and commending him for more than 29 years ofloyal and dedicated service. ( C2500.M)ACTION: Approved.2. 20 RESOLUTION NO. 8523 A Resolution of the City Council of the City of Orange extending the effective date of Resolution No. 8324 between the City of Orange and the Police Management Association to May 31, 1996 and further amending said Resolution as described herein.C2500. J.4. 2.1)ACTION: Approved.2.21 Status report on the Katella Avenue Corridor Re-Zoning Study. (C2500. G) CITY COUNCIL MINUTES SEPTEMBER 26, 1995 2. CONSENT CALENDAR (Continued) MOTION - Barrera SECOND - Murphy AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater All items on the Consent Caleodar were approved as recommended. Councilman Slater abstained on Item 2.7. Discussion ensued on items 2.5,2.7,2.17 and 2.18.END OF CONSENT CALENDAR 3.REPORTS FROM MAYOR COONTZ TAPE 508 3.1 Report on Orange County Investment PooL (C2500.F - ND)Mayor Coontz gave the following remarks: "On December 6, 1994 the City's investment in the Orange county investment pool was $28.19 rni1lion which represented 22.25% of the City's total investment portfolio of $126. 73 rni1lion at that time. To date, the City has received $22.4 rni1lion,or 80"10, of the City's investment back. In accordance with the generally accepted accounting practices, as of June 30, 1995 the City has written off the books the remaining 20%. Under this practice receivables must be due within one year and it is unlikely the City will receive any recovery of the remaining 20"10 within the year.The City has an agreement in place which the bankruptcy court has approved which gives the City a secured claim amounting to 9.54% of the City's investment. These secured claims amount to 2.69 million for the City. In a spirit of compromise, the Consensus Plan, crafted by the Business Council and approved by the Legislature, places the secured claim behind other claims. As of this writing the authorizing bills have not yet been signed into law by the Governor.Assuming the plan is signed into law, it must still be approved by parties to the bankruptcy,bankruptcy court, and survive several implementation challenges, including a plan to import trash from outside the county and a significant County borrowing in the municipal bond market. The parties to the bankruptcy include, but are not limited to, all of the cities.Under the Consensus Plan, the City is entitled to participate in the net litigation proceeds from the lawsuit against Merril Lynch after the first net $53 million is distributed to the schools. The Consensus Plan will follow the four basic principles of the City: 1) Tax fee charge or rate increases should not be any part of the bankruptcy recovery solution whatsoever. 2) The municipal revenues should not be used to bail out the crirninal acts of the former County Treasurer. 3) That the largest portion of the solution should come from within Orange County Government itself. 4) That municipal investors should retain at least a partial priority position with respect to litigation proceedings.There are several areas of impacts beyond the investment end of the pool. The City of Orange has an intersection widening project where the City needed to condense some property. A $1.5 rni1lion condemnation deposit was made with the Court system by the court just one week prior to PAGE 7 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 3. REPORTS FROM MAYOR COONTZ(Continued) the bankruptcy. Under the Consensus Plan the City should be able to receive 100% repayment on these funds deposited with the County Court. Cities with large county operations within their city limits can be general creditors for city services provided the County prior to December 6th. The county owes the City of Orange $24,000 in water bills. Under this Consensus Plan this amount would be paid back. Regarding the City's share of the 1% property tax, the County is witWlolding more than $130,000. Under the Consensus Plan the City would receive this money over a 20 year period without interest which is approximately .50 cents on the dollar. Overall the City faired pretty well in the bankruptcy recovery legislation. " NOTE: For motion, see Item 3.2. TAPE 662 3.2 Report on Orange County League of Cities' proposal for restructuring local government. (ORI800.0.12 - ND)Mayor Coontz reported the proposal focuses on how local government might be restructured to provide greater accountability to achieve greater efficiency and effectiveness in delivering local government services and to better prepare the local government's structure for service requirements for the next century. When the final report arrives, the Council should review it and be prepared to vote on this issue.Carole Walters, 534 N. Shaffer, commented that the League of Cities members have a conflict of interest because they participate on other boards. The residents will be attending the Board of Supervisors meeting tonight to present another charter which will bring government back to the people. Mayor Coontz indicated the report will be available shortly and a copy will be made available for Carole Walters.MOTION SECOND AYES Barrera Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to receive and file Item 3.1 and 3.2.3.3 Update on railroad crossings. (S4000.S.7)TAPE 783 The Director of Public Works was requested by the Mayor to report on this issue. Senator John Lewis and Assembly member Conroy have been enlisted to assist the City on this issue. There are seven railroad crossings that need to be upgraded. The crossing on Glassell near KateUa was completed and a tentative schedule for the week of October 2nd for the next crossing on Main near Katella and Taft. Also spur lines are in need of repair. The schedule for the remaining five PAGE 8 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) crossings is undetermined and the railroad's requirement for a closure ofKatella for 5 days has not been resolved. Additional costs have been incurred on the first crossing which amounted to 10,000. Additional funds for the rest of the crossings will be needed, however Measure M funds are available. The City is pursuing the possibility of abandoning crossings at Glassell south of Fletcher and Tustin north of Trenton. Mr. Norm Philips has been very involved and committed to solving these problems. Mayor Coontz acknowledged stafi's work on this issue and thanked Mr. Philips for his tenacity and assistance. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept the oral report.4.REPORTS FROM COUNCILMEMBERS TAPE 1005 4.1 Update from Abandoned Grocery Cart Ad Hoc Committee. (OR1800.0.1.11)Councilman Slater reported the committee has met twice and the next meeting is scheduled for October 4th. The committee is moving toward an abatement ordinance where the City would require grocery stores to provide a plan of retrieval. This committee is committed to resolving this situation. Police Lieutenant Bob Gustafson indicated a draft abatement ordinance will be sent to the City Attorney's office by next week, and distributed to Council for their comments. Sections from Costa Mesa, Glendale and Downey's abatement ordinances were included. It was reported that some of the cart services are going out of business. The 800 number has been disconnected for cart retrieval. Discussions have taken place with the Community Services Manager for cart collection by his staff.Chief Robertson commented that the cities that have the abatement ordinances still have this problem. The abatement ordinance is the first step in getting the stores to be responsible for getting the carts back.Mayor Coontz instructed the 800 number posters be removed wherever they are posted.PAGE 9 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 3. REPORTS FROM MAYOR COONTZ (Continued) MOTION SECOND AYES Barrera Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept the oral report.NON-AGENDA ITEMS Councilman Spurgeon - Senate Bill 2 - Term Limits, effective January 1, 1996.Councilman Spurgeon requested the City Attorney provide Council with a report on the City's options regarding this issue. The City Attorney responded the report will be on the October 10th Agenda.Councilman Slater - Placement of City Treasurer on the ballot.Councilman Slater requested this item be agendized in the near future. Mayor Coontz indicated she had talked to a person that was interested in presenting this to Council.Councilman Slater - Request Permission to leave the State from October 13 through the 22,1995.MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the request.Councilman Spurgeon - Water Service/Paramedic Subscription Service Complaint. Councilman Spurgeon indicated the followingcomplaint had come to his attention. When a person signs up for water service there is nothing on the application that indicates there is an option to pay for paramedic subscription service. Apparently, this person had to call the paramedics and was unaware of the service and received a bill. Representatives from the Fire and Water Department resolved the problem.The Interim City Manager indicated it is an annual subscription program, but will be offered on an ongoing basis with a smaller amount of$6.00 on each water bill throughout the year.Council discussion ensued that a report be provided on revisions to the application, with a signature block that would allow the person to indicate whether they want tho service or not. The whole issue needs to be addressed. The Interim City Manager will provide the report.PAGE 10 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 NON-AGENDA ITEMS ( Continued)Carole Walters, 534 N. Shaffer, commented there is no application fonn. This problem has happened to a lot of people. Also, the Water Department is not open on Friday which is an inconvenience. People have to be told of the Paramedic subscription service.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS- TAPE 1527 5.1 Accept the resignations of Beau Shigetomi and Robert Hornacek from the Design Review Board. (OR1800.0. 8. 1) MOTION SECOND AYES Spurgeon Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to accept the resignations. 5.2 Reappointment of the following members of the Design Review Board, terms to expire 9/30/99: (OR1800.0.8.1) Erika Wolfe, Steven Prothero, Steve McHarris Discussion: Council requested the following issue be agendized and requested a report containing how many DRB appeals have occurred throughout the years, how DRB can be more user friendly, and an activity level history. DRB minutes should be submitted and should reflect both sides of the issues presented. The Director of Community Development indicated the report would be available within the next week. MOTION SECOND AYES Spurgeon Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the reappointments as listed.6.ADMINISTRATIVE REPORTS TAPE 1769 6.1 Treasurer's Report for August, 1995. (C2500.F)MOTION SECOND AYES Barrera Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Salter Moved to accept the report. PAGE 11 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 6. ADMINISTRATIVE REPORTS (Continued) Discussion: Councilman Spurgeon asked the status of the recruitment efforts for the Advisory Investment Manager. The Interim City Manager responded he is working with the Finance Director on the RFP guidelines and proceeding as directed by Council to search for an outside agency to assist with the selection. TAPE 1855 6.2 Request from Robert Mickelson of Parkridge Development to complete ultimate street improvements and landscaping ofLoma Street - Mesa Drive to Via Escola.T4000. 0)Bob Mickelson, 121 W. Rose, representing Tracy and Parkridge Development commented as the new tracts come on sale, that the prospective buyers will drive past a nicely landscaped median rather than what has been there. The landscaping plan is to be submitted to the DRB, but paving can begin as soon as possible.The Director of Public Works gave an overview of the project's history. The request is that the ultimate street improvements be made at this time, including the landscaping, but the work will adhere to the original decision made by Council in 1985. In addition to striping out the area, it was proposed to leave the berm in place along most of the edge of the roadway; add some additional pilions and extend the berm if there are some areas where access could occur that are not properly controlled. It was also noted that the area will have to have new sandbags at this time. Bob Bennyhoff, 10642 Morada Dr., spoke in favor of the request.MOTION SECOND AYES Murphy Mayor Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the request.7. REPORTS FROM CITY MANAGER - None 8. LEGAL AFFAIRS 8. 1 ORDINANCE NO. 14-95 An Ordinance of the City Council of the City of Orange amending Chapter 10.06 of the Orange Municipal Code regarding the City Traffic Commission. (A2500.0. City Traffic Commission)MOTION SECOND AYES Murphy Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 14-95 have second reading waived and be adopted and same was passed and adopted by the preceding vote.PAGE 12 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 8. LEGAL AFFAIRS (Continued) 8.2 ORDINANCE NO. 15- 95 An Ordinance of the City Council of the City of Orange amending Section 10.14.050 of Chapter 10.14 of the Orange Municipal Code Pertaining to Speed Limits. (A2500.0 - Speed Limits) MOTION SECOND AYES Slater Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 15-95 have second reading waived and be adopted and same was passed and adopted by the preceding vote.8. 3 ORDINANCE NO. 16-95 An Ordinance of the City Council of the City of Orange amending Section 17.14.060 to the Orange Municipal Code relating to Accessory Second Housing Units. (A25oo.0.Second Unit Housing) Amendment: 3- 95 MOTION SECOND AYES Barrera Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater That Ordinance No. 16-95 have first 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 Barbara DeNiro, 1118 E. Adams, ren1inded Council it is not the grocery stores that are stealing the carts, but the people. Ms. DeNrro suggested a clock be installed in order for the public to see the time when speaking at the podium. Also, it was asked who follows up on conditional use permit conditions, that they are in place before projects proceed? What happens to the $36.00 fee paid since the inception of the Paramedic Program and never used?Mayor Coontz indicated the staff follows up to make sure conditional use permit conditions are met. The Interim City Manager explained the $36.00 paramedic fees collected are used to help balance the budget and are expended on certain programs.Carole Walters, 534 N. Shaffer, requested a study session with Council on the conditional use permit process as it would relate to nightclubs for teens.PAGE 13 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 10. ORAL PRESENTATIONS (Continued) The Chief of Police reviewed the process to revoke the CUP. Council discussed having some type of trigger for a review of the CUP conditions. The Interim City Manager was instructed to provide Council with a review of the CUP process and legal implications. Nick Lall, 6231 Mabury, expressed concern regarding the rules being changed on the Consent Calendar. It limits the speakers time to three minutes, not per issue on the Consent Calendar. Mayor Coontz responded this has been the way it has always been done. The staff reports are available and staffis always available to answer questions citizens might have before the Council meeting. 11. RECESS MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 6:15 p.m. to a Closed Session for the following purposes:a. Conference with Legal Counsel - existing litigation pursuant to GovernR1ent Code Section 54956.9(a): City of Orange vs. James Daum, et aL, Orange County Superior Court Case No. 73-86-30.Bankruptcy Petition of County of Orange, U. S. Bankruptcy Court Case No. SA 94-22272. Claim of Lara Lee Bevington b. Conference with Legal Counsel - anticipated litigation.Initiation oflitigation pursuant to GovernR1ent Code Section 54956. 9( c) (one potential case).c. Employee appointments pursuant to GovernR1ent Code Section 54957: Pennanent City Manager. d. To consider and take possible action upon such other matters as are orally am10unced 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.PAGE 14 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 7:00 P.M. SESSION 12. INVOCATION Pastor Steve Janssen, First Presbyterian Church 12.1 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Dan Slater 12.2 ANNOUNCEMENTS - None 12. 3 INTRODUCTIONS - None 12.4 PROCLAMATIONS - None 12.5 PRESENTATIONS a. Resolution No. 8522 was presented to Lee Upchurch, honoring him on his retirement after more than 29 years of service to the City of Orange.b. Presentation of Miss Orange portraits.Jill Connolly, 1995, Angela O'Neil, 1994, ChristyHayes, 1993 13.PUBLIC HEARINGS TAPE 3236 13.1 TRANSPORTATION SYSTEM IMPROVEMENT PROGRAM, CITY OF ORANGE: (A2500.0 - TSIP Fees)Time set for a public hearing on petition by the City of Orange to consider the Transportation System Improvement Program (TSIP) and adoption of a new fee structure.FISCAL IMPACT: Program designed to generate $67,872,000 in fee revenue to be used for approved street and highway improvement projects in TSIP Aeas B and C.MAYOR COONTZ OPENED THE PUBLIC HEARING.The City Traffic Engineer gave an overview of the Transportation System Improvement Program TSIP Area A includes the Town & Country, Main Place and LaVetalMain Corridor area. TSIP Area B is the area west of the Costa Mesa (SR-55) Freeway, TSIP Area C is the area east of the Costa Mesa (SR- 55) Freeway.Since the 1988 program revisions, the following two mandates relative to transportation fees have occurred: 1) Measure M requirement that a transportation impact fee be in effect for City eligibility in that program, and 2) the am1ual adjustment offee rate changes would require a noticed public hearing.PAGE 15 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 13. PUBLIC HEARINGS (Continued) The proposed 1995 program revisions are as follows: As the current TSIP has matured over the past seven years, both staff and program participants have found areas within the program fonnat that would benefit from change, additions and refinement. Program revisions for Area A, which is a Joint Powers Authority (JP A) will be reviewed by the Cities of Orange and Santa Ana and modifications similar to those proposed for Areas B and C may be submitted to their respective Council for consideration. It should be noted that projects appearing on the respective Area project list are not exempt from any City Councilor enviromnental approval. A Policy and Procedures Manual has been developed. The project list has been revised for Areas Band C. These projects would be needed as a result of increasing local or regional traffic. Also, those projects that are mitigation measures for approved development or redevelopment. This new project list includes project costs and estimated year of development or implementation and participating funding as applicable. Also, included is the added cost of all project right- of-way.Right-of-way can constitute more than 75% or more of a project cost.Table I for TSIP Areas B and C was explained and it was noted fee revenue, estimated at 67,800,000 with Measure M participation could be leveraged to a total project fund available at 149,179,000.Table 2 depicting the revised land use designations was explained. There are three new land use designations in TSIP Area B: Medical Office, Educational and Warehousing.Table 3 - outlined four fee rate alternatives for Area B. The actual fair share cost represents a fee structure where each land use is responsible for only its respective share of the program cost. The residential fee rate was established below the fair share rate by Council. It was also the decision by the Council to maintain a lower than actual commercial rate with the fee revenue reduction being subsidized by the Redevelopment Agency. There were no adjusted fee rates for Area C.The accrued Redevelopment Agency subsidy of Area B todate is approximately $ 865,000. The TSIP has not requested that this subsidy be reimbursed. The agency does have funds available to make this reimbursement if the need arises.Table 10 _ Comparative Transportation Fees - compares Area B and C with the City of Anai1eim,high rate - the Stadium area; the low rate - spread throughout the City, City of Santa Ana, highest and lowest rate, City of Irvine, high rate and flat rate, and with the City of Fullerton that has a single city rate. However, infOffi1ation was not available to us on their land use classification TSIP rates or their alternate funding sources. Staff's recommendation is to approve the revised TSIP policy and procedures document, the project list and fee structures for Areas B and C, and direct the City Attorney to prepare the ordinance and resolution, setting the ordinance for frrst reading. Four alternatives recommended by staff depicted on Table 3 were reviewed. PAGE 16 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 13. PUBLIC HEARINGS (Continued) Alternatives 3 and 4 reflect the Study Session concerns from Council regarding the comparison of commercial and medical fees. Hoag Memorial Hospital in Newport Beach is $5.58 per sq. foot, and the Fullerton medical area is indicated on Table 10. Council discussion ensued that based on the assumed subsidies, what is the total amount of tax increment funds needed from the Redevelopment Agency? A further discussion item was what impact was a $50 increase in the Area B rate for residential would have on the office rates. The Director of Public Works commented that the residential land use is approximately 11% of the total, and if there was a 10"10 increase in the residential rate the other rates would be affected by 1 or 2%. Further, the total Redevelopment subsidy is estimated at $6.6 million over a 20 year period. $865,000 has been accrued to date. Most of that expenditure would be in the later years. The average would be approxinlately $330,000 per year. The City Traffic Engineer explained that all four alternatives produce identical fee revenues. The only difference between the four is how the distribution of payment is affected by adjustments and subsidies. Council always has the option of approving any TSIP project and it has to be included in the Capital Improvement Program, which offers a double review. The following people spoke: Bob Mickelson, 121 W. Rose, representing the Chamber of Commerce, distributed a letter to Council. It is the chamber's goal to have the City at a competitive advantage with other cities regarding development fees. The Chamber would request a compromise for Medical Office rates; the $7.25 was too high. Altemate 4 places this rate at $2.95, the same as General Office. Mr. Mickelson felt the Chamber would support Alternate 4 as a reasonable approach to move forward. Paul Pursell, 2700 Dunston Avenue, Tustin, representing St. Joseph Hospital, indicated a letter is forthcoming outlining the hospital's concerns. It was suggested that they would be in support of Alternative 4 as a being reasonable, but requested additional time to work with the City if Council does not support Alternative 4. THERE BEING NO FURTHER COMMENTS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION SECOND AYES Murphy Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve the revised TSIP Policy and Procedures Document, Project List and Fee Structure for Area B, Alternative 4 with adjusted medical and subsidized Commercial and Area C as proposed, and direct the City Attorney to prepare the effectuating Ordinance and Resolution and set for first reading.PAGE 17 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 13. PUBLIC HEARINGS (Continued) TAPE 5213 13.2 CONDmONAL USE PERMIT 2114-95, ACCESSORY SECOND DWELLING UNIT, ROBERT L. SETTEN, SR.Time set for a public hearing on petition by Robert L. Setten, Sr. to consider Conditional Use Permit 2114-95, a proposal to convert the second story ofan accessory building into a dwelling unit on a single family residential property. The property is located at 282 N. Magnolia St. C33oo.0)NOTE: This project is categorically exempt from California Enviromnental Quality Act (CEQA)per State CEQA Guidelines Section 15303.MAYOR COONTZ OPENED THE PUBLIC HEARING The Director of Community Development reported the applicant has a one story single family residence, 1,000 sq. ft. in size. Additionally, there is a two-story second building to the rear of the single fan1i1y residence with a 3-car garage, workshop, kitchen and other living space. This accessory structure is not legally considered a living unit. A modification is proposed to allow it to be occupied as an accessory second unit and to address several of the long standing neighbor complaints. If approved, the accessory second unit would be a separate living unit and allowed to be rented out to an additional family. It or the primary unit would be required to be occupied by the property owner. This proposal is consistent with the State of California requirements and is consistent with development standards of City ordinance.Modifications to the structure would include removal of the stairs located on the west side of the structure, south side balcony, a portion of the second floor roof creating a sun deck screened by a four foot screen wall. Eves on the north side of the structure would be shortened to address a concern by a property owner. Windows would be changed on the north and west sides of the property to be smaller and higher off the floor level to address a privacy and security concern of adjacent neighbors. The kitchen on the first floor would be removed and the interior stairway would be removed. The three-car garage and workshop would remain and above that, a 640 sq.ft. accessory second unit with a sun porch.The Planning Commission held their public hearings and have recommended approval of the proposal with conditions.The following people spoke in favor:Tom Terry, Architect, Western Pacific Rim, 520 Labor, Newport Beach Bob Mickelson, 121 W. Rose Robert Setten, Sr.THERE BEING NO FURTIlER SPEAKERS, MAYOR. COONTZ CLOSED CITY COUNCIL MINUTES SEPTEMBER 26, 1995 13. PUBLIC HEARINGS (Continued) MOTION SECOND AYES Slater Mayor Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that this project is categorically exempt from California Environmental Quality Act CEQA) per State CEQA Guidelines Section 15303.MOTION SECOND AYES Slater Mayor Coontz Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to approve Conditional Use Permit No. 2114-95 as outlined in Planning Commission Resolution No. PC-23-95. TAPE 5875 13. 3 POTENTIAL REVOCATION OF CONDmONAL USE PERMIT 1998-92, THE TUNNEL (CLUB REMIXX PRODUCTIONS): (C3300.0)Time set for a public hearing on petition by the City of Orange to consider recommendations from the Planning Commission with respect to the potential revocation of a permit that allowed operation of non-alcoholic, non-smoking nightclub, with the shared use of a parking facility located at 612 N. Eckhoff Street. NOTE: This project is categorically exempt from California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15321. MAYOR COONTZ OPENED THE PUBLIC HEARING. The City Attorney remarked very extensive hearings were held by the Plam1ing Commission on August 21st and continued to September 18, 1995. After reviewing all the evidence from both the City and permittee, the Planning Commission adopted a resolution recommending to Council that Conditional Use Permit 1998-92 be revoked. Last week Council received a packet of findings and recommendations from the Planning Commission as well as the record of the proceedings.The Assistant City Attorney summarized the events that led up to the revocation hearing. On September 14, 1995 the City received a letter from Mr. Kaplan, attorney for the applicant,requesting a continuance of the public hearing. However, on September 18, 1995, the city received a letter from Mr. Kaplan stating The Tunnel had ceased operations. The City Attorney' s office faxed a message to Mr. Kaplan that the revocation hearings would proceed on the basis that even if Mr. Kaplan's representations were true the conditional use permit runs with the property and not with the applicant. Either The Tunnel could come back at some future date, or some other applicant could come back in and still try and operate under the conditional use permit, and operate a teenage night club in the same location. No representatives from The Tunnel appeared at the September 18, 1995 hearing and the City was infonned by Janice Grace, the property PAGE CITY COUNCIL MINUTES SEPTEMBER 26, 1995 13. PUBLIC HEARINGS (Continued) manager ofthat facility that her attorney was told by Mr. Kaplan that he is no longer representing The Tunnel. To Ms. Grace's knowledge the building is now vacant. It appears The Tunnel has moved to the City of Anal1eim. The City Attorney's Office in Anal1eim has been notified of this proceeding. What originally appeared to be a healthy entertaimnent alternative for minors degenerated into an underground nightclub where violence, drug and alcohol abuse and adult entertainment became the nonn. According to Police The Tunnel became a magnet for gangs in the City but also from as far away as Los Angeles County. The record before Council contains additional ample evidence that The Tunnel has failed to comply with the reasonable conditions of the conditional use permit and constitutes a public nuisance due to the health and safety threat it poses to the patrons, its employees, City Police Officers and the general public. Staff requests Council adopt the recommendations of the Planning Commission and direct that a resolution actuating the same be brought back on October 10, 1995 Council meeting. THERE BEING NO FURTHER SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION SECOND AYES Mayor Coontz Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved that this project is categorically exempt from the California Enviromnental Quality Act CEQA) per State CEQA Guidelines Section 15321.MOTION SECOND AYES Mayor Coontz Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to revoke Conditional Use Permit 1998-92 and adopt the findings as set forth in Planning Commission Resolution No. PC- 35-95.14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Nonn Philips, 348 Redwood, commented on how he successfully obtained infonnation and had the Southern Pacific Railroad visit the abandoned railroad tracks on Glassell near Flotcher to pave over them. A letter was received by the Director of Public Works today from the Southern Pacific Railroad regarding this site approving the paving over of the tracks.PAGE 20 CITY COUNCIL MINUTES SEPTEMBER 26, 1995 15. ORAL PRESENTATIONS (Continued) Mr. Philips has also obtained information on how to send a complaint to the Public Utilities Commission regarding the other seven railroad tracks in need of repair. Mr. Philips urged all citizens and the City to make sure the railroad keeps their commitment to repair the tracks. These repairs are safety hazards and the railroad company does pay attention when this is mentioned to them. Mayor Coontz commended Mr. Philips on his efforts and asked ifhe could pass on his information to staff. 16. ADJOURNMENT MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council adjourned at 8:48 p.m. to an Adjourned Regular Meeting on Monday, October 2, 1995 at 5:00 p.m. in the Weimer Room for a Closed Session and thereafter, the Council will adjourn to an Adjourned Regular Meeting on Tuesday, October 3, 1995 at 4:30 p.m. in the Weimer Room regarding:I) A Development proposal for The City Shopping Center.2) Municipal Resource Consultants' report on geographic revenue information program findings.3) Bike Trail proposal - abandoned Southern Pacific Railroad easement, Glassell to South City limits.CMMdJ.uJ, Cj~ CASSANDRA 1. THCART, CMC CITY CLERK 1 i/. . /~/.,I ../,/ / I i/' / 1 'x-, cX. fC. {'[le'I."':-cy JOANNE c. COON1&l MAYOR PAGE 21