MISSION VIEJO MINUTES
City Council, Community Development Agency,
Community Development Financing Authority,
Public Improvement Corporation,
and Library Board of Trustees*
February 5, 2007

A Regular Meeting of the City Council, the Community Development Agency, the Community Development Financing Authority, the Public Improvement Corporation, and the Library Board of Trustees of the City of Mission Viejo, California, was called to order by Mayor Reavis at 5:00 p.m., on February 5, 2007, at 200 Civic Center, Mission Viejo, California.

A complete copy of the agenda for the meeting containing all items as shown herein was posted by 5:00 p.m. on January 31, 2007, on the outdoor bulletin board at City Hall. Copies were also posted at the Montanoso Recreation and Fitness Center, 25800 Montanoso Drive, and the Norman P. Murray Community and Senior Center, 24932 Veterans Way.

*All Board and Agency memberships are reflected in the title "Council Member."

CALL TO ORDER—CITY COUNCIL, COMMUNITY DEVELOPMENT AGENCY, COMMUNITY DEVELOPMENT FINANCING AUTHORITY, PUBLIC IMPROVEMENT CORPORATION, AND LIBRARY BOARD OF TRUSTEES

Present: Council Member Kelley
Council Member MacLean (arrived at 5:05 p.m.)
Council Member Ury
Mayor Pro Tempore Ledesma
Mayor Reavis
Absent: None
Staff Present: Dennis Wilberg, City Manager
Irwin Bornstein, Assistant City Manager/Director of Administrative Services
William P. Curley III, City Attorney
Karen Hamman, City Clerk

Pledge of Allegiance: Council Member Kelley

Invocation: Mayor Pro Tempore Ledesma

RECESS TO CLOSED SESSION

Mayor Reavis recessed the meeting to Closed Session at 5:02 p.m.

CLOSED SESSION

CS1. Conference with City Attorney Concerning One Matter of Existing Litigation Pursuant to Government Code Section 54956.9(a). The Litigation is Jose Guadalupe Gomez Mejia; Orange County Community Housing Corporation; Public Law Center v. City of Mission Viejo.

CS2. Conference with the City’s Real Property Negotiator Pursuant to Government Code Section 54956.8. Property: The Approximate 2.7 Acre Parcel Identified as Assessor Parcel No. 839-161-16, Generally Located at 28715-28841 Los Alisos Boulevard within portion of Mission Foothill Marketplace shopping center. City Negotiators: Dennis Wilberg, City Manager, Charles Wilson, Director of Community Development. Negotiating Parties: Property Owner - M. F. Mission Viejo, LLC by Raymond DeAngelo. Under Negotiation Potential Acquisition of Real Property Interests for Economic Development, Affordable Housing, Commercial Rehabilitation and Improvement, Factors Affecting Price and Terms, Parcel Size, Use and Timing of Acquisition.

CS3. Conference with Real Property Negotiator Government Code Section 54956.8 and Conference with Legal Counsel Re: Existing Tolling and Standstill Agreement and Potential Settlement, Government Code Section 54956.9(c). The Real Property Commonly Known as The Shops at Mission Viejo (Mall Property) That is Generally Bounded by Crown Valley Parkway to the North, Medical Center Road to the East, Marguerite Parkway to the Southeast, Shops Blvd., to the South, and the I-5 San Diego Freeway to the West and Comprised of Assessor Parcel Nos. (APNs) 740-011-38, 740-011-39, 740-011-43, 740-011-45, 740-121-15 Owned by Mission Viejo Associates, L. P., a California Limited Partnership, With Particular Consideration of the Fifth Pad Proposed Building Area (PBA) and Potential Reuse and Redevelopment of Major Department Store Space. CDA Negotiators: On Behalf of Community Development Agency of the City of Mission Viejo ("CDA"): Dennis Wilberg, City Manager/CDA Executive Director, Irwin Bornstein, Assistant City Manager, Charles Wilson, Director of Community Development, James Williams, Economic Advisor, Celeste Brady, CDA Counsel, William Curley, III, City Attorney. Owner Negotiators: On behalf of Mission Viejo Associates, L.P. (""Owner") From Simon Property Group, the Owner Entity’s Managing General Partner: Arthur Spellmeyer, William Hammer, Bruce Moore, Esq. Under Negotiation and Discussion: The CDA and Owner are Parties to an Existing Tolling and Standstill Agreement (TSA) Dated as of May 15, 2006 Relating to an Alleged Default Under the OPA and Covenants Agreement as Described and Defined in the TSA. CDA will Consider the Proposed Price and Terms of a Real Property Transaction That May be the Basis for Amendment(s) of the OPA and Covenants Agreement (Amendment). The Proposed Amendment Will Address Owner’s Development of the Fifth Pad PBA under the OPA and Covenants Agreement and Potential Reuse of Major Department Store Space and the Price and Terms of Payment, if any, Related to Proposed Modification of the Covenants Agreement, a Real Property Interest. Legal Counsel will Update CDA on the Status of TSA and Seek Direction Related to Both the Real Property Negotiations and the Proposed Settlement of the Alleged Default. Factors Affecting Price and Terms under Negotiation: (i) Modification, if any, of Covenants Agreement; (ii) Scope and Schedule of Development of the Fifth Pad PBA; and (iii) Reuse and Redevelopment of Major Department Store Space.

CS4. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8. Property: The approximate 10.5-acre Parcel Identified as Assessor Parcel No. 809-541-11, Parcel Map No. 81-159 Generally Situated Easterly of the Intersection of Jeronimo Road and Los Alisos Boulevard in the City of Mission Viejo Co-owned by The Steadfast Companies (With Target Corporation). CDA Negotiators: Dennis Wilberg, City Manager/CDA Executive Director, Charles Wilson, Director of Community Development, James Williams, Economic Advisor, Celeste Brady, CDA Counsel, William Curley, III, Esq., City Attorney, Negotiating Parties: CDA Negotiators on Behalf of Community Development Agency of the City of Mission Viejo; and Ralph Deppisch, The Steadfast Companies. Under negotiation: Potential
Acquisition and/or Disposition of Real Property Interests for Long-term Affordable Ownership Housing and the Price and Terms of Payment Therefore Related to the Above-listed Property. Factors Affecting Price and Terms under Negotiation: Recorded Covenants, Scope of Development of Property, Affordable Housing Requirements, Factors Affecting Time of Payment: Conditions to Closing, Due Diligence Period, Schedule of Development and Development of Affordable Housing.

CS5. Conference with the City’s Real Property Negotiator (City Manager/Executive Director Dennis Wilberg and City Attorney William Curley) Pursuant to Government Code Section 54956.8 Concerning Real Property Located Adjacent to the Southern Portion of Gilleran Park at 24960 Felipe Road (Assessors Parcel Number: Portion of 125-095-02) in the City of Mission Viejo. The Negotiating Parties Are the City of Mission Viejo and Chabad Jewish Center of Mission Viejo. Under Negotiation Will Be the Price and Terms of Payment for the Property Interest to Be Acquired. Final Action, if any, on This Matter will be Taken in Public Session at a Future Council Meeting Following Public Comments.

RECONVENE

Mayor Reavis reconvened the meeting at 6:07 p.m. All five City Council Members were present.

REPORT OF CLOSED SESSION

City Attorney Bill Curley announced that for Closed Session items CS1 and CS2, there was no reportable action. For CS3 the City Council provided direction to its real property negotiator but there was no reportable action. Items CS4 and CS5 were continued to Closed Session at the end of the Council meeting tonight.

PRESENTATIONS

P1. Presentation of the Community of Character Award
Mayor Reavis, Crime Prevention Specialist Tammy Descoteaux, and Community Services Manager Steve Bell presented the Community of Character Award to Barbara Schone.

P2. Recognition of the Mission Viejo Company Alumni for their Assistance to the City with the Documenting and Preserving the Mission Viejo Heritage Collection
Mayor Reavis presented commendations to the Mission Viejo Company alumni.

P3. Recognize 2006 Employees of the Year (0410-80)
Mayor Reavis presented plaques to (1) Senior Librarian Gail Meldau, City of Mission Viejo Employee of the Year; (2) Deputy Sheriff Carl Bulanek, Orange County Sheriff’s Department Employee of the Year; and (3) Fire Captain Ed Harrod, Orange County Fire Authority Employee of the Year.

P4. Recognize Mission Viejo’s Community Recycling Program Award Winner (0410-80)
Mayor Reavis and Michelle Clark, Community Relations Manager for Waste Management of Orange County, presented the Recycling Program Award to Isaiah Mickelson, Meyers, Stevens and Tooey and Company.

RECESS

Mayor Reavis recessed the meeting at 6:48 p.m. and reconvened at 6:53 p.m. All City Council Members were present.

PUBLIC COMMENTS

Larry Gilbert, M.V.: expressed opposition to the discussion at last week’s budget meeting to revisit the idea of installing an electronic message board at La Paz and Marguerite. Expressed concern that the Sheriff’s Department and the City did not publicize a rash of car thefts at the Mission Viejo mall.

Stanley Miller, M.V.: complained, for the third time, about noise coming from Tortilla Flats restaurant and asked the City or the Sheriff’s Department to get involved in resolving the problem.

Linda Pauwels, M.V.: expressed an interest in leasing the Potocki Conference Center for the Alas de America wellness program.

Colonel Darcy Kauer, USMC: asked the City to support the Alas de America program to help successfully transition military personnel from combat back into the community.

Cathy Schlicht, M.V.: stated that freedom requires members of a community to question the actions of government officials and urged the City’s “watch dogs” to treat others with respect.

Steven Guess, M.V.: suggested that the City get public feedback on various issues through surveys in the City Outlook newsletter.

Owen Butler, M.V.: discussed parking problems at the Shops at Mission Viejo and stated that the mall owners should be responsible for security through controlled entrance and exits. He further expressed disappointment with an increase in parking fees at Mission Hospital and asked the City to get involved in the matter.

Dale Sandore, M.V.: expressed concern that the Sheriff’s Department may massage numbers regarding stolen vehicles at the mall and asked the City Council to get back to interested citizens and keep them informed.

Allan Pilger, M.V.: thanked the City Council for spending tax dollars in a more frugal manner than some Councils did in the past and discussed his discomfort with redevelopment subsidies.

CONSENT CALENDAR

Items 12, 13, 14 and 16 were removed from the Consent Calendar for separate discussion.

Motion made by Mayor Pro Tempore Ledesma, seconded by Council Member MacLean, to approve the Consent Calendar as described below.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

1. Waive Reading of Ordinances and Resolutions
Approved the reading by title of all ordinances and resolutions and declared that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

2. City Council Minutes (0410-60)
Approved the Open Session Minutes for the Regular Meeting of January 15, 2007, as presented.

3. Number not used.

4. Check Register Dated January 5, 2007, in the Amount of $1,103,702.59 (0300-30)
Ratified the accompanying check register.

5. Check Register Dated January 12, 2007, in the Amount of $1,849,720.35 (0300-30)
Ratified the accompanying check register.

6. Check Register Dated January 19, 2007, in the Amount of $2,438,862.97 (0300-30)
Ratified the accompanying check register.

7. Change in Meeting Time for Regular Planning Commission Meetings (0120-10-05)
Adopted Resolution 07-08 Changing the Established Meeting Time for the Planning Commission.

8. Norman P. Murray Community and Senior Center Expansion (CIP 994) (0400-10)
Awarded the alarm services contract for the subject project to Pyro-Comm Systems, Inc., in the amount of $23,010.

9. Norman P. Murray Community and Senior Center Expansion (CIP 994) (0400-10)
Approved Change Order Number 2 to Douglas E. Barnhart, Inc., in the amount of $25,256 for additional construction costs for the Norman P. Murray Center expansion.

10. Donation Policy for City parks and Recreation Facilities and Programs (0410-90)
Adopted Resolution 07-09 Relating To The Donation Policy For City Parks, Recreation Facilities and Recreation Programs and Amending The City Council Policy Manual.

11. Mission Viejo Paleontological Fossil Contract Agreement (0400-10) Entered into a contract agreement with Saddleback College for the preservation and restoration of the Mission Viejo Paleontological Fossil Collection (A07-04.)

15. Felipe Road Resurfacing Project (CIP 837) (0820-15)
Approved the bid specifications and authorized staff to advertise for construction bids for the subject project.

17. Replacement of Casework and Countertops at the Mission Viejo Animal Services Center (0400-10)
Awarded contract for the subject services to Mica Industries in an amount not to exceed $40,000 (A07-05.)

18. Ratification of Emergency Purchase Order to Replace the Boiler for the Library’s Heating/Ventilating/Air Conditioning (HVAC) System
Ratified Purchase Order #070723 issued under the City Manager’s emergency purchase authority to Emcor Company on January 19, 2007, in the amount of $24,183.00, for the replacement of the roof-top water boiler unit for the Library’s HVAC system.

ITEMS REMOVED FROM THE CONSENT CALENDAR

12. Youth Athletic Park—Change of Time for Ball Field Lights (0730-20)
Director of Recreation and Community Services Kelly Doyle presented the staff report.

The following spoke in favor of extending the turn-off time for lights at the Youth Athletic Park: Mike Balliet, M.V.; Grant Mullen, President of North Mission Viejo Little League, M.V.; Brian Porter, M.V.; Tammy Moore, M.V.; Wayne Tate, M.V.; Renee Bennett, M.V.; and David Engwall, M.V.

The following spoke in opposition to the extension of the turn-off time for lights at the Youth Athletic Park: Joseph Hendrick, M.V.; Michael E. McCarthy, M.V.; Dr. Laura Weatherford, M.V.; and Evelyn Horowitz, M.V.

Motion made by Council Member Ury, seconded by Council Member MacLean, to adopt Resolution 07-10 Establishing a Turn Off Time for Ball Field Lights at the Youth Athletic Park at 10:15 p.m.
On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Ury
NOES: Reavis
ABSENT: None

13. Solid Waste Franchise Agreement with Waste Management of Orange County (0400-
10)
City Manager Dennis Wilberg presented the staff report.
Motion made by Mayor Pro Tempore Ledesma, seconded by Mayor Reavis, to (1) expand the responsibility of the Solid Waste Ad Hoc Committee (Mayor Pro Tempore Ledesma and Council Member MacLean) to include matters related to the extension of the Solid Waste Franchise Agreement, and (2) direct staff and the Ad Hoc Committee to begin discussions with Waste Management of Orange County regarding a two-year extension of
the Integrated Solid Waste Franchise Agreement and report back to Council in 90 days.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

14. Rate Adjustment for Solid Waste Delivered to Southeast Resource Recovery Facility (1030-05)
Senior Management Analyst Denise Matson presented the staff report.
Motion made by Mayor Pro Tempore Ledesma, seconded by Council Member Ury, to delay this matter and allow the Solid Waste Ad Hoc Committee to evaluate Waste Management’s proposed rate adjustment for solid waste delivered to Southeast Resource Recovery Facility and return to the City Council with a recommendation.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

16. Melinda Park Restroom (CIP 308) (0400-10)
Director of Pubic Services Keith Rattay presented the staff report.

Larry Gilbert, M.V.: expressed concern with project delays and increased construction costs as time passes.

Motion made by Mayor Pro Tempore Ledesma, seconded by Mayor Reavis, to issue a purchase order to RJM Design Group, Inc. for the design & development of construction documents for bidding and construction support services for Melinda Park Restroom in an amount not to exceed $29,600.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

PUBLIC HEARINGS

OLD BUSINESS

NEW BUSINESS

STAFF REPORTS

*Items 24, 26 and 27 were taken out of order

City Manager’s Report

24. Urban Land Institute (ULI) Technical Advisory Panel (TAP) Workshop for Mission Viejo Village Center Area Generally Located in Vicinity of the Intersection of Marguerite Parkway and La Paz Road (0660-20)

Director of Community Development Chuck Wilson presented the staff report. Phyllis Alzamora, Director of the Urban Land Institute of Orange County, John Shumway, The Concord Group, and Alex Wong, Red Oak Investments, discussed the proposed Technical Advisory Panel (TAP) and presented a proposed scope of work.

Allan Pilger, M.V.: discussed the Village Center’s vacancy rate of only 3% and stated that he doesn’t see the need for the proposed TAP.

Rick Sandzimier, M.V.: asked the Council to consider engaging the Planning and Transportation Commission in this process.

Dr. and Mrs. Michael Hansen, M.V.: asked if there would be a guarantee for their financial security and expressed concern that their business may be asked to leave or that their rent would be raised.

By consensus, the City Council directed staff to return at the next City Council meeting with an agreement with Urban Land Institute (ULI) for a Technical Advisory Panel Workshop for Mission Viejo Village Center.

COUNCIL MEMBER COMMENTS

26. Response to CUSD Plan for Blanket Environmental Impact Report for District-Wide School Facilities (0150-67)

Wayne Tate, M.V.: expressed support for the proposed letter and asked the Council to move forward and oppose a blanket EIR.

Council Member Kelley asked Mayor Reavis to consider reinstating the CUSD ad hoc committee.

Motion made by Council Member Kelley, seconded by Mayor Reavis, to approve the proposed letter to CUSD, for signature by all five City Council Members, asking for rescission of the prior Board of Trustees approval authorizing the preparation of an Environmental Impact Report covering every CUSD school.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

Council Member MacLean stated for the record that he supports the letter but he is opposed to the use of inflammatory words.
27. Introduction and Consideration of a Loitering Ordinance (0480-20)

The following spoke in favor of the proposed ordinance: Bob Holtzclaw, Lake Forest; Sandra Sweet, M.V.; Terri Graham, Saddleback Valley Neighborhood Alliance, M.V.; Payman Emamian, Pasadena.

The following presented written comments in favor of the ordinance: Dr. Mark E. Waters, D.C., M.V.; Kimanh Tran and Beng Ghee Tan, salon owners, M.V.; Apple Tree Montessori, M.V.; Tom Toansend, Play it Again Sports, M.V.; Don and Betty Darroch, wig shop owners, M.V.; Luis Fernandez and Jesus Olive, service station managers, M.V.; Jeronimo Pet Clinic, M.V.; Book Corral, M.V.; Abbas Mohammad, Mobil station owner, M.V.

Motion made by Mayor Pro Tempore Ledesma, seconded by Council Member MacLean, to introduce Ordinance 07-246 Adding Section 11.16.090 to Chapter 11.16 of Title 11 of the Mission Viejo Municipal Code Prohibiting Trespass on Private Property.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

MAYOR’S, COMMISSION, AND COMMITTEE REPORTS

19. Orange County Fire Authority (OCFA) Report (0410-40)
Received the report from Council Member Kelley.

20. El Toro Reuse Planning Authority (ETRPA) Report (0640-30)
Received the report from Mayor Pro Tempore Ledesma.
Motion made by Mayor Pro Tempore Ledesma, seconded by Mayor Reavis, to adopt Resolution 07-11 Terminating the El Toro Reuse Planning Authority.

On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, Ury
NOES: None
ABSENT: None

21. Foothill/Eastern Transportation Corridor Agency Report (0410-40)
Received the report from Council Member MacLean.

22. San Joaquin Hills Transportation Corridor Agency Report (0410-40)
Received the report from Mayor Pro Tempore Ledesma.

Mayor Reavis announced that she intends to step aside as alternate to the SJHTCA and that she will appoint Council Member Kelley as the alternate at the next City Council Meeting.

23. Vector Control Board Report (0410-40)
Received the report from Mayor Reavis.

STAFF REPORTS

City Manager’s Report

Called the Council's attention to two items in his monthly newsletter: the City's upcoming annual report for 2006 and information regarding the change for Tierra Nativa. Announced that he will be absent from the next City Council meeting on February 19th.

City Attorney’s Report

City Attorney Bill Curley informed the City Council that the City of Newport Beach is now accepting registration for the March 2, 2007, group housing conference and he asked the Council Members to see Kathy or Jennifer if they plan to attend. Mr. Curley outlined the recent letter he sent to Frank Wasko at Southern California Edison and announced that Mr. Wasko has responded, indicating that SCE acknowledges the City’s request for identification of the modifications that SCE has made. Finally, the City Attorney discussed ongoing issues at Kaleidoscope and stated that the City is exposed in landlord and tenant disagreements because the City, through the Community
Development Agency, has property rights at Kaleidoscope center.

25. Council Member Reports of Events and Activities Attended (AB 1234) (0480-70)
The City Council Members acknowledged the accuracy of their event and activities calendars as presented in the staff report.

Council Member Kelley

Asked if Lt. Bernardi or the City Manager can provide answers to some of the questions that have been raised about auto thefts at the mall. Outlined her attendance at an art exhibition at Kaleidoscope Gallery and encouraged residents to visit the exhibit. Congratulated Mission Viejo staff member Steve Bell who was recently awarded a Lifetime Achievement Award from the American Cancer Society. Council Member Kelley and Steve Bell are Co-chairs for the 2007 Relay for Life and the kickoff rally will be held on Friday, February 9, 2007, in the Saddleback Room at City Hall from 6:30 to 8:00 p.m.
Announced that former Marine Corps Major Quang Pham will be the special guest speaker on February 21st at 7:00 p.m. at Saddleback College to support the forthcoming Veterans Memorial on the college campus. Invited interested residents to contact her or Dr. Frank Lieberman for more
information on Fun with Chips which will be held on February 24, 2007, as a fundraiser for the Fun With Chalk street painting festival. Congratulated Barbara Schone and the 2006 employees of the year who were honored this evening. Announced that the Community of Character word for the month of February is Unity.

Council Member MacLean

Suggested that the City Council Agendas be reorganized to place "Items Removed from the Consent Calendar" immediately following New Business. By consensus, the City Council agreed to reorder upcoming Agendas on a trial basis.

Council Member Ury

Mayor Pro Tempore Ledesma

Asked for a report from Lt. Bernardi at the next City Council meeting on the SUV thefts at the mall, including a chronology of what has transpired.

Mayor Reavis

Announced that the Norman P. Murray Community and Senior Center will host a tax assistance program from noon to 4:00 p.m. on Thursdays and Fridays to help seniors with low and moderate income.

28. Economic Development Committee (012 Mayor Reavis appointed herself and Council Member Kelley to an Economic Development Committee.

RECESS TO CLOSED SESSION AND RECONVENE

At 9:18 p.m., the City Council recessed to Closed Session. At 10:16 p.m., the City Council reconvened with all five City Council Members present.

ADJOURNMENT TO FEBRUARY 19, 2007, AT 5:00 P.M.

At 10:18 p.m., Mayor Reavis adjourned the meeting to Monday, February 19, 2007, at 5:00 p.m. in memory of Jim Warren, Pastor Rick Warren’s brother, and Dennis Mihelic, President of Viejo Little League.

Karen Hamman, City Clerk