LAGUNA NIGUEL CITY COUNCIL
Minutes of the Special City Council Meeting
October 17, 2022 - 5:00 p.m.
CALL TO ORDER - Mayor Gennawey called the Special City Council meeting on October 17, 2022, to order at 5:00 p.m.
ROLL CALL
Mayor Elaine Gennawey - Present
Mayor Pro Tem Sandy Rains - Present
Council Member Kelly Jennings - Present
Council Member Fred Minagar - Present
Council Member Rischi Paul Sharma - Present
PLEDGE OF ALLEGIANCE - Councilmember Sharma
PUBLIC COMMENTS
There were no public comments.
UNFUNDED PENSION LIABILITY OPTIONS
Finance Director Hendrickson provided a brief background report sharing that on June 7, 2022, the City Council adopted a balanced budget for Fiscal Year 22-23, which included a budgetary surplus of $1.1 million, and discussed options for use of the surplus, including addressing the City's unfunded pension liabilities. Following that discussion, the City retained the services of Foster & Foster, Inc., to perform an actuarial analysis of the City's pension valuation. Finance Director Hendrickson also shared actions the City has taken to address pension liabilities, which included changing pension benefits for new hires, reductions in staffing, and establishing a PARS 115 Supplemental Pension Trust to set aside assets to offset pension debt. Finance Director Hendrickson introduced Marybeth Redding, Foster & Foster, Inc.; Rachel Sanders, PARS; and Kerry Worgan, CaPERS.
Ms. Redding provided an overview of CaPERS, Laguna Niguel's CaPERS plan, investment returns, the City's funded liability ratios and status, and contribution projections. Ms. Redding also presented City Council with options to pay down the unfunded liability by making an additional payment to CaPERS or to the Supplemental 115 Pension Trust.
City Council discussion ensued with Ms. Redding, Ms. Sanders, and Mr. Worgan providing clarification and recommendations to City Council inquiries and comments. In conclusion, City Council expressed their consensus to allocate 10% of the City's fund balance (reserves), in the amount of $4.8 million for direct payment to CaPERS; $1 million to the 115 Pension Trust; and $100,000 to fund balance (reserves). City Manager City Council Special Minutes Page 1 of 2 October 17, 2022 Letourneau indicated that staff aims to present the City Council's consensus to allocate funds as discussed for approval at the regular City Council meeting of November 1.
ADJOURNMENT
Mayor Gennawey adjourned the meeting at 7:12 p.m.
Respectfully submitted by:
Marissa J. Asistin, CMC
City Clerk
City Council Special Minutes Page 2 of 2 October 17, 2022
LAGUNA NIGUEL CITY COUNCIL
Minutes of the Regular City Council Meeting
October 18, 2022
5:30 p.m. - Regular Meeting
CALL TO ORDER AND ROLL CALL - Mayor Gennawey called the Regular City Council Meeting to order at 5:30 p.m.
Mayor Elaine Gennawey- Present
Mayor Pro Tem Sandy Rains - Present
Council Member Kelly Jennings - Present
Council Member Rischi Paul Sharma - Present
Council Member Fred Minagar - Present
CLOSED SESSION PUBLIC COMMENTS
There were no public comments on the Closed Session item.
CLOSED SESSION
Interim City Attorney Ghirelli read the City Council into Closed Session.
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant Exposure to Litigation Pursuant to Paragraph 2 of Subdivision (d) of Government Code Section 54956.9: (1 case)
A record of the threat of litigation can be obtained from the City Clerk's office.
2. PUBLIC EMPLOYMENT
Pursuant to Section 54957(b)(1) of the Government Code
Title: City Attorney
PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Section 54957(b)(1) of the Government Code
Title: City Attorney
City Council conducted the Closed Session.
Mayor Gennawey called the Regular meeting back to order at 7:00 p.m.
CLOSED SESSION REPORT
City Manager Letourneau reported there was no reportable action taken.
INVOCATION - Chaplain Serena Cummins, Orange County Sheriffs Department PLEDGE OF ALLEGIANCE - Scout Troop 772
City Council Regular Meeting Minutes Page 1 of 7 October 18, 2022
PRESENTATIONS
Volunteer of the Month
Mayor Gennawey presented Orange County Fire Authority (OCFA) Fire Cadet Christian Clark with a certificate recognizing his volunteer services. She thanked him on behalf of the City Council for his spirit of volunteerism.
2. Proclamation Declaring October Fire Prevention Month Mayor Pro Tem Rains presented a declaration to Orange County Fire Authority (OCFA) Division Chief Mike Contreras and Community Relations and Education Specialist Brandi Najm declaring October Fire Prevention Month. She thanked them on behalf of the City Council for the OCFA's commitment to educating the community on fire prevention.
3. Presentation to Orange County Fire Authority Division Chief Mike Contreras in Recognition of His Service to the City of Laguna Niguel Mayor Gennawey presented Orange County Fire Authority (OCFA) Division Chief Mike Contreras a proclamation recognizing his years of service to the City of Laguna Niguel.
She thanked him on behalf of the City Council for his dedication to the community and wished him well in retirement.
PUBLIC COMMENTS
William Moorhead spoke on his candidacy for the Moulton Niguel Water District.
Melissa Caldwell thanked first responders and Orange County Fire Authority (OCFA) and spoke in favor of public safety in Laguna Niguel.
CONSENT CALENDAR
Council Member Jennings pulled Item No. 7, Mayor Pro Tem Rains pulled Item No. 8, and Item No. 6 was pulled for discussion.
A MOTION was made by Council Member Minagar, seconded by Mayor Pro Tem Rains to approve the Consent Calendar with the exception of Items No. 6, 7, and 8.
Motion carried 5-0.
1. Warrants of October 18, 2022
Approved as written.
2. Payroll Summary Register
Approved as written.
City Council Regular Meeting Minutes Page 2 of 7 October 18, 2022 Annual Investment Report for Fiscal Year 2021-2022
City Council received and filed the City's Annual Investment Report for Fiscal Year 2021-2022.
Minutes of the Special Meeting of the City Council on September 26, 2022, and October 7, 2022, and Regular City Council Meeting on October 4, 2022 Approved as written.
Update on the City's Legislative Advocacy Efforts
City Council received and filed this update on the City's Legislative Advocacy Efforts.
Approval of a Multi-Year Professional Services Agreement and Amendment for On-Call Professional Services with Park Consulting Group, Inc. for Land Management Systems Services
Approved a multi-year Professional Service Agreement and Amendment No. 1 for On-Call Professional Services with Park Consulting Group, Inc.; and,
2. Authorized the City Manager to execute the Professional Services Agreement and Amendment subject to the City Attorney making non- substantive changes.
ITEMS PULLED FOR DISCUSSION
6. City Grant Funding for Community Services/Cultural Arts Programs, Special Events and School-Based Activity Sponsorships
Human Resources Manager Farhadi provided a brief report.
PUBLIC COMMENTS
Martha McNicholas thanked City Council for offering these grants and spoke on her disappointment that certain school-based activity sponsorships were not funded.
COUNCIL COMMENTS
Mayor Pro Tem Rains inquired as to why the S.H.A.R.K. program was not funded even though it had been funded in previous years. Council Member Jennings and Mayor Gennawey provided clarification that the application this year requested funding for substitute teachers to have planning time, whereas in previous years the applicant requested funding for things such as homework.
A MOTION was made by Council Member Jennings, seconded by Mayor Gennawey, to:
City Council Regular Meeting Minutes Page 3 of 7 October 18, 2022 Approve $75,000 in City grant funding for Community Services/Cultural Arts Programs and Special Events/School-Based Activity Sponsorships, as recommended by the Grants Ad Hoc Committee.
Motion carried 5-0.
7. Award of Contract for City Attorney Legal Services
Mayor Gennawey and Council Member Jennings expressed their concerns with awarding this contract to Aleshire & Wynder and explained why they would be voting no on this item.
A MOTION was made by Mayor Pro Tem Rains, seconded by Council Member Sharma, to:
1. Approve and execute the Legal Services Agreement with Aleshire & Wynder, LLP.
Motion carried by the following vote: Ayes: Council Members Minagar and Sharma, and Mayor Pro Tem Rains, Noes: Council Member Jennings and Mayor Gennawey.
Approval of 3-Year Agreement for a New Land Management System (LMS) Software (EnerGov) with Tyler Technologies, Inc.
Mayor Pro Tem Rains asked Community Development Director Orduna to explain the process the City used in selecting this software. Community Development Director Orduna explained that the City piggy-backed off a Request for Proposals (RFP) for the City of Gilroy and determined that their proposal encompassed all the information needed to move forward with the proposed vendor.
Mayor Gennawey recessed the meeting until 8:00 p.m.
Mayor Gennawey reconvened the meeting at 8:00 p.m.
Mayor Pro Tem Rains requested that RFP numbers be provided in the future so as to promote transparency.
A MOTION was made by Mayor Pro Tem Rains, seconded by Council Member Jennings, to:
Approve a 3-year Agreement with Tyler Technologies, Inc., in the not-to- exceed amount of $663,032 for the procurement of a new Land Management System (LMS) software (EnerGov); and
Authorize the City Manager to execute the Agreement and future amendments to the Agreement, subject to the City Attorney making non- substantive changes.
City Council Regular Meeting Minutes Page 4 of 7 October 18, 2022 Motion carried 5-0.
DISCUSSION ITEM
Introduce Ordinances to Adopt, by Reference, Codes Contained in the 2022 California Building Standards Code, including Local Amendments, and Related International Codes
Development Services Manager Morgan provided a report and PowerPoint presentation entitled "2022 California Building Standards Code."
Mayor Gennawey asked for language to be added for clarification to Ordinance No. 2022- 219. Development Services Manager Morgan stated that such changes would be included when the Ordinance was brought back at the second reading.
Council Member Minagar asked whether the homes that burned down in the Coastal Fire had to abide by this code. Development Services Manager Morgan stated that reconstruction of those homes would be subject to the current fire code. Council Member Minagar asked whether the homes that were not burned down but needed certain portions re-built were subject to the current fire code. Building Official Halsey stated that if the re- building met a certain financial threshold, then the re-build would be subject to the current fire code.
PUBLIC COMMENTS
There were no public comments.
Mayor Gennawey closed Public Comments for this item.
A MOTION was made by Council Member Minagar, seconded by Council Member Sharma, to:
Read the title of the proposed Ordinances, which are referenced below:
ORDINANCE NO. 2022-219
AN ORDINANCE OF THE CITY OFLAGUNA NIGUEL, CALIFORNIA,
ADOPTING BY REFERENCE THE 2022 CALIFORNIA BUILDING CODE; THE 2022 CALIFORNIA RESIDENTIAL CODE;
THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE;
THE 2022 CALIFORNIA ELECTRICAL CODE;
THE 2022 CALIFORNIA PLUMBING CODE;
THE 2022 CALIFORNIA MECHANICAL CODE;
THE 2022 CALIFORNIA ADMINISTRATIVE CODE;
THE 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE;
AND THE 2021 INTERNATIONAL SWIMMING POOL AND SPA CODE;
TOGETHER WITH CERTAIN AMENDMENTS, ADDITIONS,
DELETIONS, AND PENALTIES, AND AMENDING TITLE 8 OF THE
City Council Regular Meeting Minutes Page 5 of 7 October 18, 2022
LAGUNA NIGUEL MUNICIPAL CODE
ORDINANCE NO. 2022-220
AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING BY REFERENCE THE 2022 CALIFORNIA FIRE CODE,
TOGETHER WITH CERTAIN AMENDMENTS, DELETIONS, ADDITIONS AND PENALTIES, AND AMENDING TITLE 11 OF
THE LAGUNA NIGUEL MUNICIPAL CODE
2. Waive the reading of the full text of the Ordinances (requires a majority vote of the Council Members present);
3. Consider the proposed Ordinances and schedule public hearing for both for November 1, 2022; and,
4. Direct that the proposed Ordinances be placed on the November 1, 2022 Agenda for adoption at the regular meeting of the City Council immediately following the required public hearing, with the addition of the word "current" to Section 105.9 of Ordinance No. 2022-219.
Motion carried 5-0.
OTHER BUSINESS/COUNCIL REPORTS
1. Council Reports
Council Member Jennings reported on her attendance at the Junior Civics Workshop and reminded everyone that it was Breast Cancer Awareness Month. She encouraged everyone to continue to have important conversations with their children about the dangers of fentanyl and to attend the National Prescription Drug Take Back Day on October 29.
Council Member Sharma invited everyone to attend the Taste for the Troops event on October 20.
Council Member Minagar reported on his attendance at regional meetings and on the City receiving federal aid.
Mayor Pro Tem Rains thanked the Parks and Recreation Department for putting on the Haunted Trails event over the weekend and encouraged everyone to attend the Taste for the Troops event on October 20.
Mayor Gennawey highlighted the City's legislative advocacy report, several bills that passed, and the impact these bills have on the community. She reported on her attendance at the Mayor's Leadership Breakfast, the H2O for HOA event, the Junior Civics Workshop, the Mix and Mingle event, and the Study Session on Unfunded Pension Liabilities. She concluded with thanking Interim City Attorney Ghirelli for his service.
City Council Regular Meeting Minutes Page 6 of 7 October 18, 2022 City Manager Report/Department Reports
Parks and Recreation Director Rivera reported on upcoming Fall events.
ADJOURNMENT
Mayor Gennawey adjourned the Regular City Council Meeting at 8:26 p.m.
Respectfully submitted,
Marissa J. Asistin, CMC
City Clerk
City Council Regular Meeting Minutes Page 7 of 7 October 18, 2022