Tom Kisela
City Manager
Mike Vigliotta
City Attorney
Pamela Coleman
City Clerk
DAN SLATER
Mayor
ARIANNA BARRIOS
Mayor pro tem, District 1
JON DUMITRU
Councilmember, District 2
KATHY TAVOULARIS
Councilmember, District 3
DENIS BILODEAU
Councilmember, District 4
ANA GUTIERREZ
Councilmember, District 5
JOHN GYLLENHAMMER
Councilmember, District 6
AGENDA
City Council
April 16, 2024
Notice and Call
of a Special Meeting
5:00 PM Budget Study Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this Special Meeting. Special Meetings are held for a specific purpose and when action is needed prior to the next Regular Meeting. The Mayor or a majority of the City Council may call a special meeting of the City Council with a minimum 24 hours notice.
Agenda Information
The agenda contains a brief general description of each item to be considered. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda. The agenda and supporting documentation for a special meeting is available no later than 24 hours prior to the Council meeting on the City's website at www .cityoforange.org, at the City Clerk's Office located at 300 E. Chapman Avenue, and at the Main Public Library located at 407 E. Chapman Avenue.
Public Participation
Public Comment shall be limited to only those items described on this Special Meeting Notice /Agenda (Government Code Section 54954.3(a)).
Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced. It is requested that you state your name for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior.
ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (714) 744-5500. When possible, notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting.
REMINDER: Please silence all electronic devices while City Council is in session.
1 City Council Agenda April 16, 2024
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the California Government Code, that a Special Meeting of the Orange City Council is hereby called for the following purpose:
5:00 PM BUDGET STUDY SESSION
1. OPENING/CALL TO ORDER
1.2 PLEDGE OF ALLEGIANCE
Councilmember John Gyllenhammer
1.3 ROLL CALL
2. ADMINISTRATIVE REPORTS
2.1. Second Budget Study Session for the Proposed Fiscal Year 2024-25 Budget.
Receive and file the report and provide direction to staff.
Recommended Action:
Staff Report
FY 25 Draft Five-Year Improvement Plan
Attachments:
3. ADJOURNMENT
The next Regular City Council meeting will be held on Tuesday, April 23, 2024, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.
I, Pamela Coleman, CMC, City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this agenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange City Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library at 407 E. Chapman Avenue, Police facility at 1107 N. Batavia Street, and uploaded to the City's website www.cityoforange.org.
Date posted: April 11, 2024
2 Agenda Item
City Council
Item #: 2.1. 4/16/2024 File #: 24-0250
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Second Budget Study Session for the Proposed Fiscal Year 2024-25 Budget.
2. SUMMARY
This is the second budget study session in support of the preparation of the Fiscal Year 2024-25 Budget. This study session is intended to provide the draft of the Five-Year Capital Improvement Plan for the period of Fiscal Year 2024-25 through Fiscal Year 2028-29.
3. RECOMMENDED ACTION
Receive and file the report and provide direction to staff.
4. FISCAL IMPACT
Fiscal impact will be determined with final budget adoption.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.
6. DISCUSSION AND BACKGROUND
This is the second budget study session in support of the preparation of the City’sFiscal Year 2024- 25 (FY 25) Budget and is intended to focus on presenting the draft Five-Year Capital Improvement Plan for the period of FY 25 through FY 29.
The Five-Year Capital Improvement Plan (CIP) serves as a comprehensive budget and strategic planning tool used to determine the extent of future needs and identify sources of funding. Funding is provided by a variety of sources including development impact fees, transportation funds, grants, reimbursement agreements, and long-term financing.
The City continues to provide its residents and businesses with much-needed capital improvements and infrastructure, despite budgetary challenges. While several projects have been deferred in recent years, the City strives to maintain a steady level of capital improvement activity in Orange.
The FY 25 Five-Year CIP identifies 137 proposed projects. FY 25 itself, there are 66 budgeted projects while the remaining 71 projects are either a continuation of previously approved plans or anticipated to start during the out-years. With these proposed projects, the City Council will be City of Orange Printed on 4/11/2024Page 1 of 6
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3 Item #: 2.1. 4/16/2024 File #: 24-0250
anticipated to start during the out-years. With these proposed projects, the City Council will be investing almost $38.1 million in the upcoming fiscal year and almost $144.8 million over the five-year planning horizon. This is in addition to project appropriations that will be carried over from the current fiscal year. To ease the challenges of the City’sbudgetary operating deficit, 14 projects were deferred or reduced for FY 25, totaling approximately $10.4 million.
As in previous years, the CIP will be funded through several funds. This includes $8.6 million from various transportation funds (Traffic Improvement, Gas Tax Maintenance, Road Maintenance Rehabilitation, and TSIP); $9.6 million from the City’sEnterprise Funds (Sanitation and Water); $4.7 million from the City’sInternal Service Funds (Equipment Replacement and Computer Replacement); $2.9 million from the City’s Capital Project Fund; and, $12.3 million from various funds.
In FY 25, there are 11 identified project categories. The most funded include a $8.8 million investment towards the improvement of road conditions around the City, $1.4 million towards City facility improvements, $3.9 million towards City park improvements, and a $3 million investment in the City’s vehicle replacements.
City of Orange Printed on 4/11/2024Page 2 of 6
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4 Item #: 2.1. 4/16/2024 File #: 24-0250
Five-Year Capital Improvement Plan
The following are highlights of the FY 25 Five-Year CIP projects:
New Park in West Orange
A 2.4 acre piece of property managed by Orange County Flood Control (OCFC) has been identified as a location for a new park on the west side of the City. Based on the conceptual plan and feedback from the County, the next steps include completion of environmental review, design, and construction. The environmental review and design process has already started in FY 24, and staff worked with OCFC to enter into a long-term 50-year lease agreement for the property. City funding leveraged from former Redevelopment Capital Fund has been identified in the amount of $3 million for the project, with the potential for federal grant funding sponsored by Congressman Correa to partially fund the project.
Corporation Yard Renovations
Bids were received for the first phase of the Corporation Yard Renovation project which focuses on building a police storage facility along with other site improvements. Staff plans to move forward with construction in June 2024, if approved by the Council later this month. Multiple construction phases are expected to complete the more efficient layout at the consolidated site.
Pavement Management Program
This program coordinates the comprehensive maintenance needs of the City’s road system.
Maintenance strategies include asphalt resurfacing, slurry seal, and where needed reconstruction.
Approximately $7.6 million is requested in FY 25. Based on the City’sPavement Management Plan, the City should be spending approximately $10 million annually on road maintenance to prevent long- term deterioration. This program is funded by Measure M2, Gas Tax, Community Development Block Grant, Capital Projects, and the Road Maintenance Rehabilitation Account funds.
Water Projects
A commitment of $7.1 million in FY 25 towards ten water infrastructure projects intended to maintain City of Orange Printed on 4/11/2024Page 3 of 6
powered by Legistar™
5 Item #: 2.1. 4/16/2024 File #: 24-0250
A commitment of $7.1 million in FY 25 towards ten water infrastructure projects intended to maintain or improve the City’s water production and distribution. This includes $1.8 million for pipeline replacement, which provides for the design and construction of water mainline replacements for the City's water system. Additionally, $1.4 million is budgeted for the replacement of an aging hydropneumatic tank and $2 million for the drilling of a new water production well. The new well is designed to provide approximately 3,000 gpm and significantly enhance the City’s groundwater production.
Sewer Projects
Commitment of $2.4 million to the Sewer Replacement Program to maintain or improve the City’s sewer pipe network, which provides for the design and construction of sewer mainline replacements for the City's sewer system. Approximately one mile of pipeline is targeted to be replaced annually due to increasing age, substandard sizing, corrosion, or high maintenance. The program will focus on locations such as Grand Street, Glassell Street, Center Street, Culver Avenue, Olive Street, and Maple Avenue
Capital Projects Fund (500)
Prior to FY 20, the City aimed to set aside monies from the unreserved fund balance of the General Fund to support the Capital Projects Fund (500). This funding provided necessary reinvestment in the City’s aging infrastructure. However, due to recent budgetary challenges, monies for these infrastructure needs have not been contributed towards for some time. Several projects have been in deferment despite evaluation of poor condition. As such, the City has continued to prioritize projects that can no longer be deferred due to safety concerns and projects that are partially grant funded.
After careful consideration, there are $2.9 in projects proposed for FY 25:
1. Pavement Management Program ($1,250,000);
2. Minor Traffic Control Devices ($200,000);
3. City Facilities Improvements ($450,000);
4. Santiago Bike Trail Phase IV ($500,000);
5. Streetlight Pole Replacement Program ($470,000);
6. Rolling File Cabinet Replacement ($50,000)
Deferred Projects
To address the City’sbudgetary constraints, several projects that had been recommended from City departments have been deferred and are not included in the FY 25 CIP. The projects and project amounts are listed below:
Project Fund Amount
Deferred/Reduced
Notes
Tot Lot Shade Sails Park
Acquisition
(510)
$430,000 Deferred to FY
26 El Modena Basin Area
Improvements
Park
Acquisition
(510)
30,000 Deferred to FY
26 Rubberized Tot Lot Installation at
La Veta Park
Park
Acquisition
(510)
125,000 Deferred to FY
26 Facilities Condition Assessment Capital
Projects (500)
100,000 Deferred to FY
27 Fire Station Improvements Capital
Projects (500)
400,000 Deferred to FY
27 Community Services Building
Restoration
Capital
Projects (500)
200,000 Deferred to FY
27 El Modena Electric Vehicle
Charging Station
Capital
Projects (500)
50,000 Deferred
Roof Replacement at City
Facilities (rated poor in
condition)
Capital
Projects (500)
500,000 Reduced to
exclude
locations
Depot Building Improvements Capital
Projects (500)
400,000 Deferred
Municipal Parking Lot
Maintenance
Capital
Projects (500)
20,000 Deferred to FY
26 Fire Station 5 Exercise Room
Addition
Capital
Projects (500)
600,000 Deferred to FY
27 Fire Station 2 Remodel Capital
Projects (500)
900,000 Deferred to FY
27 Citywide Bike Lane
Enhancements
Capital
Projects (500)
200,000 Deferred to FY
26 Vehicle Replacements Equipment
Replacement
(720)
6,500,000 Reduced
vehicles to
replace
Total Deferred Projects $10,455,000
City of Orange Printed on 4/11/2024Page 4 of 6
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6 Item #: 2.1. 4/16/2024 File #: 24-0250Project Fund Amount Deferred/Reduced
Notes
Tot Lot Shade Sails Park
Acquisition
(510)
$430,000 Deferred to FY
26 El Modena Basin Area
Improvements
Park
Acquisition
(510)
30,000 Deferred to FY
26 Rubberized Tot Lot Installation at
La Veta Park
Park
Acquisition
(510)
125,000 Deferred to FY
26 Facilities Condition Assessment Capital
Projects (500)
100,000 Deferred to FY
27 Fire Station Improvements Capital
Projects (500)
400,000 Deferred to FY
27 Community Services Building
Restoration
Capital
Projects (500)
200,000 Deferred to FY
27 El Modena Electric Vehicle
Charging Station
Capital
Projects (500)
50,000 Deferred
Roof Replacement at City
Facilities (rated poor in
condition)
Capital
Projects (500)
500,000 Reduced to
exclude
locations
Depot Building Improvements Capital
Projects (500)
400,000 Deferred
Municipal Parking Lot
Maintenance
Capital
Projects (500)
20,000 Deferred to FY
26 Fire Station 5 Exercise Room
Addition
Capital
Projects (500)
600,000 Deferred to FY
27 Fire Station 2 Remodel Capital
Projects (500)
900,000 Deferred to FY
27 Citywide Bike Lane
Enhancements
Capital
Projects (500)
200,000 Deferred to FY
26 Vehicle Replacements Equipment
Replacement
(720)
6,500,000 Reduced
vehicles to
replace
Total Deferred Projects $10,455,000
Conclusion
The FY 25 proposed Capital Improvement Plan reflects the City’schallenges with addressing the General Fund’soperating deficit, while also maintaining a standard level of service and operations for the citizens and businesses of Orange.
In the next two months, staff will continue to refine the City’sFY 25 operating and CIP budgets for City of Orange Printed on 4/11/2024Page 5 of 6
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7 Item #: 2.1. 4/16/2024 File #: 24-0250
preliminary review in May 2024 and final adoption in June 2024.
7. ATTACHMENTS
· FY 25 Draft Five-Year Improvement Plan
City of Orange Printed on 4/11/2024Page 6 of 6
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8 Agenda Item
City Council
Item #: 2.1. 4/16/2024 File #: 24-0250
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Second Budget Study Session for the Proposed Fiscal Year 2024-25 Budget.
2. SUMMARY
This is the second budget study session in support of the preparation of the Fiscal Year 2024-25 Budget. This study session is intended to provide the draft of the Five-Year Capital Improvement Plan for the period of Fiscal Year 2024-25 through Fiscal Year 2028-29.
3. RECOMMENDED ACTION
Receive and file the report and provide direction to staff.
4. FISCAL IMPACT
Fiscal impact will be determined with final budget adoption.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.
6. DISCUSSION AND BACKGROUND
This is the second budget study session in support of the preparation of the City’sFiscal Year 2024- 25 (FY 25) Budget and is intended to focus on presenting the draft Five-Year Capital Improvement Plan for the period of FY 25 through FY 29.
The Five-Year Capital Improvement Plan (CIP) serves as a comprehensive budget and strategic planning tool used to determine the extent of future needs and identify sources of funding. Funding is provided by a variety of sources including development impact fees, transportation funds, grants, reimbursement agreements, and long-term financing.
The City continues to provide its residents and businesses with much-needed capital improvements and infrastructure, despite budgetary challenges. While several projects have been deferred in recent years, the City strives to maintain a steady level of capital improvement activity in Orange.
The FY 25 Five-Year CIP identifies 137 proposed projects. FY 25 itself, there are 66 budgeted projects while the remaining 71 projects are either a continuation of previously approved plans or anticipated to start during the out-years. With these proposed projects, the City Council will be City of Orange Printed on 4/11/2024Page 1 of 6
powered by Legistar™
9 Item #: 2.1. 4/16/2024 File #: 24-0250
anticipated to start during the out-years. With these proposed projects, the City Council will be investing almost $38.1 million in the upcoming fiscal year and almost $144.8 million over the five-year planning horizon. This is in addition to project appropriations that will be carried over from the current fiscal year. To ease the challenges of the City’sbudgetary operating deficit, 14 projects were deferred or reduced for FY 25, totaling approximately $10.4 million.
As in previous years, the CIP will be funded through several funds. This includes $8.6 million from various transportation funds (Traffic Improvement, Gas Tax Maintenance, Road Maintenance Rehabilitation, and TSIP); $9.6 million from the City’sEnterprise Funds (Sanitation and Water); $4.7 million from the City’sInternal Service Funds (Equipment Replacement and Computer Replacement); $2.9 million from the City’s Capital Project Fund; and, $12.3 million from various funds.
In FY 25, there are 11 identified project categories. The most funded include a $8.8 million investment towards the improvement of road conditions around the City, $1.4 million towards City facility improvements, $3.9 million towards City park improvements, and a $3 million investment in the City’s vehicle replacements.
City of Orange Printed on 4/11/2024Page 2 of 6
powered by Legistar™
10 Item #: 2.1. 4/16/2024 File #: 24-0250
Five-Year Capital Improvement Plan
The following are highlights of the FY 25 Five-Year CIP projects:
New Park in West Orange
A 2.4 acre piece of property managed by Orange County Flood Control (OCFC) has been identified as a location for a new park on the west side of the City. Based on the conceptual plan and feedback from the County, the next steps include completion of environmental review, design, and construction. The environmental review and design process has already started in FY 24, and staff worked with OCFC to enter into a long-term 50-year lease agreement for the property. City funding leveraged from former Redevelopment Capital Fund has been identified in the amount of $3 million for the project, with the potential for federal grant funding sponsored by Congressman Correa to partially fund the project.
Corporation Yard Renovations
Bids were received for the first phase of the Corporation Yard Renovation project which focuses on building a police storage facility along with other site improvements. Staff plans to move forward with construction in June 2024, if approved by the Council later this month. Multiple construction phases are expected to complete the more efficient layout at the consolidated site.
Pavement Management Program
This program coordinates the comprehensive maintenance needs of the City’s road system.
Maintenance strategies include asphalt resurfacing, slurry seal, and where needed reconstruction.
Approximately $7.6 million is requested in FY 25. Based on the City’sPavement Management Plan, the City should be spending approximately $10 million annually on road maintenance to prevent long- term deterioration. This program is funded by Measure M2, Gas Tax, Community Development Block Grant, Capital Projects, and the Road Maintenance Rehabilitation Account funds.
Water Projects
A commitment of $7.1 million in FY 25 towards ten water infrastructure projects intended to maintain City of Orange Printed on 4/11/2024Page 3 of 6
powered by Legistar™
11 Item #: 2.1. 4/16/2024 File #: 24-0250
A commitment of $7.1 million in FY 25 towards ten water infrastructure projects intended to maintain or improve the City’s water production and distribution. This includes $1.8 million for pipeline replacement, which provides for the design and construction of water mainline replacements for the City's water system. Additionally, $1.4 million is budgeted for the replacement of an aging hydropneumatic tank and $2 million for the drilling of a new water production well. The new well is designed to provide approximately 3,000 gpm and significantly enhance the City’s groundwater production.
Sewer Projects
Commitment of $2.4 million to the Sewer Replacement Program to maintain or improve the City’s sewer pipe network, which provides for the design and construction of sewer mainline replacements for the City's sewer system. Approximately one mile of pipeline is targeted to be replaced annually due to increasing age, substandard sizing, corrosion, or high maintenance. The program will focus on locations such as Grand Street, Glassell Street, Center Street, Culver Avenue, Olive Street, and Maple Avenue
Capital Projects Fund (500)
Prior to FY 20, the City aimed to set aside monies from the unreserved fund balance of the General Fund to support the Capital Projects Fund (500). This funding provided necessary reinvestment in the City’s aging infrastructure. However, due to recent budgetary challenges, monies for these infrastructure needs have not been contributed towards for some time. Several projects have been in deferment despite evaluation of poor condition. As such, the City has continued to prioritize projects that can no longer be deferred due to safety concerns and projects that are partially grant funded.
After careful consideration, there are $2.9 in projects proposed for FY 25:
1. Pavement Management Program ($1,250,000);
2. Minor Traffic Control Devices ($200,000);
3. City Facilities Improvements ($450,000);
4. Santiago Bike Trail Phase IV ($500,000);
5. Streetlight Pole Replacement Program ($470,000);
6. Rolling File Cabinet Replacement ($50,000)
Deferred Projects
To address the City’sbudgetary constraints, several projects that had been recommended from City departments have been deferred and are not included in the FY 25 CIP. The projects and project amounts are listed below:
Project Fund Amount
Deferred/Reduced
Notes
Tot Lot Shade Sails Park
Acquisition
(510)
$430,000 Deferred to FY
26 El Modena Basin Area
Improvements
Park
Acquisition
(510)
30,000 Deferred to FY
26 Rubberized Tot Lot Installation at
La Veta Park
Park
Acquisition
(510)
125,000 Deferred to FY
26 Facilities Condition Assessment Capital
Projects (500)
100,000 Deferred to FY
27 Fire Station Improvements Capital
Projects (500)
400,000 Deferred to FY
27 Community Services Building
Restoration
Capital
Projects (500)
200,000 Deferred to FY
27 El Modena Electric Vehicle
Charging Station
Capital
Projects (500)
50,000 Deferred
Roof Replacement at City
Facilities (rated poor in
condition)
Capital
Projects (500)
500,000 Reduced to
exclude
locations
Depot Building Improvements Capital
Projects (500)
400,000 Deferred
Municipal Parking Lot
Maintenance
Capital
Projects (500)
20,000 Deferred to FY
26 Fire Station 5 Exercise Room
Addition
Capital
Projects (500)
600,000 Deferred to FY
27 Fire Station 2 Remodel Capital
Projects (500)
900,000 Deferred to FY
27 Citywide Bike Lane
Enhancements
Capital
Projects (500)
200,000 Deferred to FY
26 Vehicle Replacements Equipment
Replacement
(720)
6,500,000 Reduced
vehicles to
replace
Total Deferred Projects $10,455,000
City of Orange Printed on 4/11/2024Page 4 of 6
powered by Legistar™
12 Item #: 2.1. 4/16/2024 File #: 24-0250Project Fund Amount Deferred/Reduced
Notes
Tot Lot Shade Sails Park
Acquisition
(510)
$430,000 Deferred to FY
26 El Modena Basin Area
Improvements
Park
Acquisition
(510)
30,000 Deferred to FY
26 Rubberized Tot Lot Installation at
La Veta Park
Park
Acquisition
(510)
125,000 Deferred to FY
26 Facilities Condition Assessment Capital
Projects (500)
100,000 Deferred to FY
27 Fire Station Improvements Capital
Projects (500)
400,000 Deferred to FY
27 Community Services Building
Restoration
Capital
Projects (500)
200,000 Deferred to FY
27 El Modena Electric Vehicle
Charging Station
Capital
Projects (500)
50,000 Deferred
Roof Replacement at City
Facilities (rated poor in
condition)
Capital
Projects (500)
500,000 Reduced to
exclude
locations
Depot Building Improvements Capital
Projects (500)
400,000 Deferred
Municipal Parking Lot
Maintenance
Capital
Projects (500)
20,000 Deferred to FY
26 Fire Station 5 Exercise Room
Addition
Capital
Projects (500)
600,000 Deferred to FY
27 Fire Station 2 Remodel Capital
Projects (500)
900,000 Deferred to FY
27 Citywide Bike Lane
Enhancements
Capital
Projects (500)
200,000 Deferred to FY
26 Vehicle Replacements Equipment
Replacement
(720)
6,500,000 Reduced
vehicles to
replace
Total Deferred Projects $10,455,000
Conclusion
The FY 25 proposed Capital Improvement Plan reflects the City’schallenges with addressing the General Fund’soperating deficit, while also maintaining a standard level of service and operations for the citizens and businesses of Orange.
In the next two months, staff will continue to refine the City’sFY 25 operating and CIP budgets for City of Orange Printed on 4/11/2024Page 5 of 6
powered by Legistar™
13 Item #: 2.1. 4/16/2024 File #: 24-0250
preliminary review in May 2024 and final adoption in June 2024.
7. ATTACHMENTS
· FY 25 Draft Five-Year Improvement Plan
City of Orange Printed on 4/11/2024Page 6 of 6
powered by Legistar™
14