MISSION VIEJO MINUTES
City Council, Community Development Agency,
Community Development Financing Authority,
Public Improvement Corporation,
and Library Board of Trustees*
April 16, 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 April 16, 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 April 13, 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 (arrived at 5:04 p.m.)
Council Member MacLean
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: Mayor Pro Tempore Ledesma

Invocation: Council Member MacLean

RECESS TO CLOSED SESSION

Mayor Reavis recessed the meeting to Closed Session at 5:04 p.m.

CLOSED SESSION

CS1. 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) Property: 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, Via Curacion 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 potential reuse and redevelopment of certain 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, and William Curley, III, City Attorney. Under negotiation and discussion: The existing Owner Participation Agreement includes recorded covenants, including covenants regarding the use, re-use, and operation of Major Department Store space(s) at the Mall Property. The CDA negotiators seek direction from the City Council/CDA Board regarding discussion with Major Anchor Tenant(s) as potential re-use tenants pursuant to the covenants. The CDA negotiators also seek direction regarding the price and terms of payment, if any, related to proposed modifications, if any, of the covenants, a real property interest. Further, CDA negotiators will update the City Council/CDA Board about the status of the Tolling and Standstill Agreement and business terms of the potential settlement thereunder. Factors Affecting Price and Terms under Negotiation: (i) modification, if any, of the covenants, and (ii) potential reuse of Major Department Store space(s).

RECONVENE

Mayor Reavis reconvened the meeting at 6:00 p.m. All five City Council Members were present.

REPORT OF CLOSED SESSION

City Attorney Bill Curley announced that there was no reportable action from Closed Session.

PRESENTATIONS

P1. Proclaim April 28, 2007, to be "Artes de la Vida" Day
Mayor Reavis presented the proclamation to Director of Public Services, Keith Rattay.

P2. Recognize the Rose Society of Saddleback Mountain for Their Continued Dedication and Volunteerism in Maintaining the Mission Viejo Civic Center Rose Garden
Mayor Reavis presented the Certificate of Appreciation to the Rose Society of Saddleback Mountain volunteers.

P3. Recognize the Canyon Crest Garden Club for Their Continued Dedication and Volunteerism in Maintaining the Florence Joyner Olympiad Park Rose Garden
Mayor Reavis presented the Certificate of Appreciation to the Canyon Crest Garden Club volunteers.

PUBLIC COMMENTS

Dave Gove, M.V.: asked the City Council to reject the pending proposal to develop a dog park at Oso Viejo Park and to remove that park from consideration.

Sivon Kalminov, M.V.: requested the Council address a safety related issue with the proliferation of illegally parked vehicles on the east side of Camden.

Cathy Schlicht, M.V.: asked when the City Council directed the City Attorney to eliminate the public’s ability to pull Consent Calendar items.

CONSENT CALENDAR

Motion made by Council Member MacLean, seconded by Mayor Pro Tempore Ledesma, to approve the Consent Calendar as described below.
On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis, and 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)
(1) Approved the Open Session Minutes for the Regular Meeting of April 2, 2007, as presented; (2) approved the Minutes for the Special Meeting of March 30, 2007, as presented; and (3) approved the Minutes for the Special Meeting of March 31, 2007, as presented.

3. Summary of Fiscal Year 2006-2007 Budget Amendments to Date (0330-30)
Received and filed.

4. Check Register Dated March 23, 2007, in the Amount of $2,442,294.87 (0300-30)
Ratified the accompanying check register.

5. Check Register Dated March 30, 2007, in the Amount of $997,003.88 (0300-30)
Ratified the accompanying check register.

6. City Treasurer’s Monthly Report for February 2007 (0320-80)
Received and filed the report.

7. Community Development Agency Treasurer’s Monthly Report for February 2007 (0320-80)
Received and filed the report.

8. Community Development Financing Authority (CDFA) Treasurer’s Monthly Report for February 2007 (0320-80)
Received and filed the report.

9. Ordinance Prohibiting Land Uses that Contravene State or Federal Law (0480-20)
Adopted Ordinance 07-251 Adding Section 9.01.035(g) to Title 9 of the Mission Viejo Municipal Code Prohibiting all Land Uses That Contravene State or Federal Law.

10. Draft Annual Action Plan for Fiscal Year 2007-2008 Detailing City’s proposed Use of Community Development Block Grant (CDBG) Funds and Establishing CDBG Funding Priorities (0670-10)
Adopted Resolution 07-25 Approving the City’s Annual Action Plan for Fiscal year 2007-2008 Detailing City’s Proposed Use of Community Development Block Grant Funds and Authorizing Submission of Such Plans to the U.S. Department of Housing and Urban Development.

11. Award of Routine Annual Tree Maintenance Contract (0400-10)
(1) Approved the contract extension for the Routine Annual Tree Maintenance Contract to West Coast Arborists, Inc for the period of July 1, 2007 to June 30, 2009, in an amount not to exceed $1,377,498, with three (3) two-year renewals for a total possible contract term of eight (8) years; and (2) authorized staff to issue a purchase order to West Coast Arborists, Inc for the period of July 1, 2007 through June 30, 2008 in an amount not to exceed
$688,749.

12. Mission Viejo Community Foundation Donor Recognition Program (0720-10)
Approved the Mission Viejo Community Foundation Donor Recognition Program for the Norman P. Murray Center Expansion Project.

13. Avery Parkway Resurfacing—Marguerite Parkway to Interstate 5 (CIP 796) (0400-10)
Adopted Resolution 07-26 Approving and Authorizing execution of Program Supplement No. N019 to Administering Agency-State Agreement No. 12-5451R for Federal-Aid Projects between the State Department of Transportation and the City of Mission Viejo.

14. Annual Maintenance Program for Removal and Replacement of Asphalt Pavement and Related Services (0400-10)
Approved Seventh Amendment to the existing contract with Hardy & Harper, Inc to increase the contract in an amount not to exceed $ 60,000.00.

15. Playground Equipment Replacement and Repair Items for Neighborhood Parks (0400-10)
Awarded contract to Miracle Playground Sales of Southern California in an amount not to exceed $34,727.56.

16. Fiscal Year 2006-2007 Residential Asphalt and Concrete Repair and Asphalt Overlay Project (CIP 836/838) (0400-10)
(1) Awarded the construction contract for the subject project to Hardy & Harper, Inc., in the amount of $1,802,120; (2) authorized issuance of a purchase order to Charles Abbott Associates, Inc., in an amount not to exceed $19,000 for contract administration.

17. First Amendment to the Solid Waste Franchise Agreement with Waste Management of Orange County (0400-10)
Adopted Resolution 07-27 Approving the First Amendment to the Solid Waste Franchise Agreement between the City of Mission Viejo and USA Waste of California, Inc., dba Waste Management of Orange County and Authorizing the City Manager to Execute the First Amendment on behalf of the City

PUBLIC HEARINGS

18. Installation of Speed Humps on Bridgeton (0860-50)
Director of Public Works Loren Anderson presented the staff report.
Mayor Reavis opened the public hearing.

The following spoke in favor of speed humps on Bridgeton: Sivon Kalminov, M.V.; Tom Filipcik, M.V.; Jon Jagielski, M.V.; and Tom Kausrud, M.V.
Mayor Reavis closed the public hearing.

Motion made by Mayor Pro Tempore Ledesma, seconded by Council Member Kelley, to approve the installation of speed humps on Bridgeton between Camden and Ridgemark.

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

19. Appeal of Architectural Review AR2006-92 filed by Kate Muller, Ron Denecour, Donald Scott, David and Arlene Brown, and Rick and Lynda Lunzer of the Planning and Transportation Commission’s February 26, 2007 conditional approval of a petition submitted by Brion May of Brion May Consulting, agent for Lori Ghnouly, to add a 1,205 sq. ft., first floor addition to the rear of the existing single story, 1,081 sq. ft. dwelling, for a total of 2,286 sq. ft. at 23732 Calle Hogar, in the RPD 6.5 (Residential Planned Development) zone. The proposed addition includes four bedrooms, three bathrooms, an office, and an expansion of the existing living room (0600-40)
Director of Community Development Chuck Wilson presented the staff report. Associate Planner Tim Martin presented a slide show depicting existing conditions and the proposed addition to the subject property.

Mayor Reavis opened the public hearing.
Brion May, agent for applicant Lori Ghnouly: discussed his client’s plans for the addition to the home at 23732 Calle Hogar. Outlined the approval process they followed with the City and the Planning and Transportation Commission and stated that Ms. Ghnouly’s plans for the property are consistent and compatible with the character of the neighborhood. Asked the City Council to deny the appeal. Appellants Kate Muller, Ronald L. Denecour, Arleen Brown, Lynda Lunzer, David Brown, and Rick Lunzer expressed opposition to the proposed addition and presented reasons for their appeal.

The following spoke in favor of the proposed addition at 23732 Calle Hogar: Winifred Wilson, M.V. and Mimi Johnson, San Clemente.

The following presented written comments in favor of the proposed addition: Jacque Lehn, M.V.; Sam Ranca, Anaheim.

The following presented written comments in opposition to the proposed addition: Mark Muller, M.V.; Fred Tharaldson, M.V.; Gordon W. Kent, M.V.; Cheryl Kent, M.V.; Kyle Stedman, M.V.; Donald Scott, M.V; Judy M. Scott, M.V.; Marie E. Yetter, M.V.; Beverly Garner, M.V.; James L. Garner, M.V.; Phillip A. Morris, M.V.; Karen Wood, M.V.; James Yetter, M.V.; Kathy Kirlin, M.V.; Sean and Kim Doran, M.V.; Paul G. Coppes, M.V.; Kristin Orloff, M.V.; and Chris Kirlin, M.V. Brion May, agent for applicant Lori Ghnouly: provided rebuttal comments in response to issues the appellants raised during their testimony.

Mayor Reavis closed the public hearing.
City Attorney Curley advised the City Council that while this is an emotional issue, their decision must be based on fact and must comply with the law and satisfy City codes.

Motion made by Council Member Kelley, seconded by Mayor Pro Tempore Ledesma, to direct staff to prepare a resolution granting the appeal sought for Architectural Review AR2006-92 and return for City Council action at the regular meeting of May 7, 2007. On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, and Reavis
NOES: MacLean and Ury
ABSENT: None
Mayor Reavis stated for the record that the reason for her vote is the scale of the project.

RECESS

Mayor Reavis announced a recess at 8:12 p.m. The City Council reconvened at 6:53 p.m. with all five City Council Members present.

OLD BUSINESS

20. Additional School Sites for Kid’s Factory Program (0950-30)
Director of Recreation and Community Services Kelly Doyle presented the staff report. The following spoke in favor of the Kids Factory Program: Bob Gaebel, School Principal, Saddleback Valley Unified School District; M.V.; Jeff Holton, Kids Factory staff, M.V.; Ron Ruef, M.V.; and Ruben Cruz, Fountain Valley. The following presented a written comment in favor of additional hours and Kids Factory Programs in Mission Viejo: Claire Lindsell, M.V.
Motion made by Mayor Reavis, seconded by Mayor Pro Tempore Ledesma, to add the remaining six schools to the Kids Factory after school program with the following changes:

(1) increase the City portion of subsidy by $90,000.00, making the new subsidy $330,000.00 (plus administration fees); (2) direct staff to negotiate with the Saddleback Valley Unified School District to share the increased cost with another $90,000.000 from the District (this share could be from administration fees of $191,000.00 or tax pass throughs); (3) utilize staff option on page 5 of the staff report to implement a $25.00 registration fee for each of the three semesters; and (4) incorporate the character education program through crafts into the Kids Factory (therefore eliminating the duplicated city cost and staff time).

Mayor Pro Tempore Ledesma withdrew his second.

Motion made by Council Member MacLean, seconded by Council Member Kelley, to add the additional six schools to the Kids Factory after school and drop-in program in the amount of $180,000 and direct that the current fee structure remain in place.
On roll call, said motion carried by the following vote:
AYES: Kelley, Ledesma, MacLean, Reavis and Ury
NOES: None
ABSENT: None

21. Norman P. Murray Community and Senior Center Expansion (CIP 994) (0400-10) (0330-30)
Director of Recreation and Community Services Kelly Doyle presented the staff report.
Motion made by Council Member MacLean, seconded by Council Member Kelley, to (1) approve Change Order #3 to Douglas E. Barnhart, Inc. in the amount of $36,200 for additional construction costs for subject project; (2) approve Change Order #4 to Douglas E. Barnhart, Inc. in the amount of $173,960 for additional construction costs for subject project; (3) approve Change Order #5 to Douglas E. Barnhart, Inc. in the amount of $2,491,302 for additional construction costs for subject project; (4) approve Change Order #5 to Robert R. Coffee Architect & Associates in the amount of $80,520 for additional design costs for subject project; (5) approve Change Order #1 to Friess Construction in the amount of $93,098 for additional construction management costs for subject project; and (6) adopt Resolution No. 07-28 Amending the Fiscal Year 2006-2007 Budget to Increase Estimated Appropriations for the Norman P. Murray Community & Senior Center Expansion Capital Improvements Project (CIP 994).

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

NEW BUSINESS

ITEMS REMOVED FROM THE CONSENT CALENDAR

MAYOR’S, COMMISSION, AND COMMITTEE REPORTS

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

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

24. San Joaquin Hills Transportation Corridor Agency Report (0410-40)
Received the report from Council Member Kelley who attended the recent SJHTCA meeting as alternate for Mayor Pro Tempore Ledesma.

25. Vector Control Board Report (0410-40)
Mayor Reavis announced that there has not been a recent meeting of the Vector Control Board, therefore she has nothing to report at this time.

STAFF REPORTS

City Manager’s Report

City Attorney’s Report
26. Revision to City Council Meeting Process Regarding Limiting Removal of Agenda Items to the Members of the City Council and Review of City Council-City Manager Management Procedures (0410-90)
City Attorney Bill Curley presented the staff report

Cathy Schlicht, M.V.: expressed opposition to the proposal to deny the public the ability to remove items from the Consent Calendar.

Motion made by Mayor Pro Tempore Ledesma, seconded by Mayor Reavis, to reject the recommended action, thereby retaining the public’s ability to remove items from the Consent Calendar.

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

Motion made by Council Member Ury, seconded by Council Member MacLean, to (1) adopt Resolution 07-29 Revising Council Policy 0400-3 Regarding City Council Meeting Protocols That will Allow Only City Council Members to Remove Agenda Items for Discussion; and (2) review process by which City Council Members are authorized to explore opportunities and thereafter direct the City Manager per City ordinance.

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

COUNCIL MEMBER COMMENTS

27. 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. Mayor Reavis, Mayor Pro Tempore Ledesma and Council Member Ury announced that they have changes to their calendars and will provide updates to the City Clerk for the public record.

Council Member Kelley

Announced that the City lost two well-respected members of the community this past week. Barbara Schone was an active volunteer and Linda Mulhaupt was Principal of Barcelona Hills Elementary School. She shared the City Council’s sense of loss and offered condolences to the families. Both of these women were victims of cancer and, as a reminder, the American Cancer Society’s Relay for Life will be held this year on June 23 and 24, 2007. Those interested in forming a team or helping the committee are invited to visit www.mvrelay.org or contact her for more information. Announced that she is wearing purple tonight to remind the community of “Paint our Town Purple” on May 1st. This is also an American Cancer Society event to draw attention to the battle against cancer. Reminded residents and encouraged them to attend the first year of the City’s ten-year Artes de la Vida program on April 28, 2007. Announced that she was disturbed to learn that the Capistrano Unified School District will be bringing additional used portables to the Newhart School campus and that she plans to place an item on the next Agenda to suggest that the City send a letter to CUSD expressing the Council’s concerns with the use of old portable classrooms.

Council Member MacLean

28. Electronic Message Board at the Corner of La Paz and Marguerite (0860-60)

Cathy Schlicht, M.V.: expressed opposition to replacement of the City’s wooden message board and to the proposal to seek new bids for an electronic board.

Motion made by Council Member MacLean, seconded by Council Member Ury, direct staff to re-bid the Electronic Message Board and corner enhancements to the north-east corner of La Paz and Marguerite for consideration at the first City Council meeting in July 2007.

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

29. Sponsorship of Housing Summit Workshop 5/2/07 by the City of Mission Viejo (0160-15)
Motion made by Council Member MacLean, seconded by Council Member Ury, to approve bronze level sponsorship of $2,500 for the Housing Summit workshop on May 2, 2007.

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

Council Member Ury departed at 9:47 p.m. and he and did not return before conclusion of the City Council Meeting.

Council Member Ury

Mayor Pro Tempore Ledesma

Mayor Reavis

Announced that the National Wheelchair Tennis Championships will be held at Felipe Tennis Center from July 2 to 5, 2007. Reminded residents that National Library Week is forthcoming and she invited residents to visit the City’s Library in support. Welcomed Mission Viejo’s new Patrol Sergeant, Bill McGovern. Announced that the City will host a Music of World War II program on Monday May 28, 2007, beginning at 4:00 p.m. Reminded the community that Artes de la Vida will be held on Saturday, April 28th from 8:00 a.m. to 12:00 p.m. at Arroyo Park. Residents can obtain more information on parking by calling city hall. Announced that any member of the public who is interested in applying for a spot on the 2007 Measure M Oversight Committee can obtain information through OCTA or by calling the Mission Viejo City Clerk’s office. Reminded residents that Orange County Fire Authority personnel will be accepting donations for the Muscular Dystrophy Association’s “Fill the Boot” Campaign from April 19 to 21, 2007.

ADJOURNMENT

At the hour of 9:52 p.m., there being no further business to come before the City Council at this session, Mayor Reavis adjourned the meeting in memory of Barbara Schone, Linda Mulhaupt, and David George Howells, to Monday, May 7, 2007, at 5:00 p.m.

Karen Hamman, City Clerk
Approved at the meeting of May 7, 2007