Agenda packet — Orange City Council, March 25, 2025

Tom Kisela
City Manager
Wayne Winthers
Interim City Attorney
Pamela Coleman
City Clerk

DAN SLATER
Mayor

DENIS BILODEAU
Mayor pro tem, District 4

ARIANNA BARRIOS
Councilmember, District 1

JON DUMITRU
Councilmember, District 2

KATHY TAVOULARIS
Councilmember, District 3

ANA GUTIERREZ
Councilmember, District 5

JOHN GYLLENHAMMER
Councilmember, District 6
AGENDA
City Council
March 25, 2025
5:00 PM Closed Session
6:00 PM Regular Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this meeting and encourages your participation. Regular City Council meetings are held on the second and fourth Tuesday of each month at 6:00 p.m.

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 is available after 4:00 p.m. on the Thursday 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. Written materials relating to an item on the agenda that are provided to the City Council after agenda packet distribution and within 72 hours before Council is to consider the item will be made available for public inspection in the City Clerk’s Office during normal business hours; at the City Council meeting; and made available on the City's website.

Public Participation
Regular meetings are televised live on Spectrum Cable Channel 3 and AT&T U -verse Channel 99, and streamed live and on-demand on the City's website at www.cityoforange.org.

Pursuant to Government Code Section 54954.3, members of the public may address the City Council on any agenda item before or during Council ’s consideration of the item, and on any other matters within the City Council’s jurisdiction by using any of the following methods:
1) In-Person
To speak on an item on the agenda, complete a speaker card indicating your name, address, and identify the agenda item number or subject matter you wish to address. The card should be given to the City Clerk prior to the start of the meeting. General comments are received during the “Public Comments” section at the beginning of the Regular Session. No action may be taken on off -agenda items unless authorized by law .

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.
(Continued on page 2)

Page 1 of 7 ends

1 City Council Agenda March 25, 2025
2) Written Public Comments via eComment
Members of the public can submit their written comments electronically for City Council consideration by using the eComment feature on the Agenda page of the City's website at www .cityoforange.org. To ensure distribution to the City Council prior to consideration of the agenda, we encourage the public to submit written comments by 3:00 p.m. the day of the meeting. All written comments will be provided to the Council for consideration and posted on the City’s website after the meeting. 3) Public Comments via recorded voicemail message
Finally, the public can record their comments by calling (714) 744-2234 no later than 5:00 p.m. the day of the meeting. Recorded messages will not be played at the meeting, but will be provided to the Council.

In accordance with Ordinance No. 10-01, any person making personal, impertinent, slanderous or profane remarks or who becomes boisterous while addressing the Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council further during that meeting, unless permission to continue is granted by a majority vote of the Council.

Please contact the City Clerk’s Office at (714) 744-5500 with any questions.

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. 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.

Page 2 of 7 ends

2 City Council Agenda March 25, 2025
5:00 PM CLOSED SESSION

1. CALL TO ORDER

1.1 ROLL CALL

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, members of the public may address the Council on Closed Session items only. Public Comments are limited to three (3) minutes per speaker.

3. RECESS TO CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9. (One potential case)
b. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a) & (d)(1) – One case Name of Case: Mark Blickhahn v. Ana Cadman, et al.

Orange County Superior Court Case No. 30-2024-01441466
c. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1.

Title: City Manager
d. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
City Negotiators: Tom Kisela, City Manager; Monica Espinoza, Human Resources Director
Employee Organizations: Orange Management Association, Orange Municipal Employees’ Association, Orange Maintenance and Crafts Employees’ Association, and International Brotherhood of Electrical Workers (IBEW) Local 47

4. CLOSED SESSION REPORT

5. ADJOURNMENT
The City Council will adjourn to the 6:00 p.m. Regular Session in the Council Chamber.

Page 3 of 7 ends

3 City Council Agenda March 25, 2025
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER

1.1 INVOCATION
Reverend Nicky Stade, Refuge OC

1.2 PLEDGE OF ALLEGIANCE
Councilmember John Gyllenhammer

1.3 ROLL CALL

1.4 ANNOUNCEMENTS

1.5 REPORT ON CLOSED SESSION ACTIONS

2. PUBLIC COMMENTS
At this time, members of the public may address the Council on matters not listed on the agenda within the subject matter jurisdiction of the City Council, provided that NO action may be taken on off -agenda items unless authorized by law. Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced.

3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion approving the recommended action listed on the Agenda. Any member of the City Council, staff, or the public may request an item be removed from the Consent Calendar for discussion or separate action. Unless otherwise specified in the request to remove an item from the Consent Calendar, all items removed shall be considered immediately following action on the remaining items on the Consent Calendar.

3.1. Waive reading in full of all ordinances on the Agenda.

Approve.

Recommended Action:

Staff ReportAttachments:

3.2. Approval of minutes of the City of Orange City Council Regular Meetings held on February 25 and March 11, 2025.

Approve minutes as presented.

Recommended Action:

Staff Report
February 25, 2025, Regular Meeting minutes
March 11, 2025, Regular Meeting minutes
Attachments:

Page 4 of 7 ends

4 City Council Agenda March 25, 2025

3.3. First Amendment to Agreement with Willdan Engineering for on -call building services.

Approve amendment to the agreement with Willdan Engineering in the amount of $305,000, for a total not -to-exceed amount of $ 405,000, for on -call building services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
First Amendment to Agreement with Willdan Engineering
Attachments:

3.4. Second Reading and adoption of an Ordinance of the City Council of the City of Orange repealing and replacing Chapter 10.10 of the Orange Municipal Code pertaining to bicycles. Ordinance No. 05-25 .

Adopt Ordinance No. 05-25.

Recommended Action:

Staff Report
Ordinance No. 05-25
Attachments:

END OF CONSENT CALENDAR
* * * * * * * *

4. AB 1234 REPORTS
This is the time for all AB 1234 reports required pursuant to Government Code Section 53232.3(d) on meetings and conferences attended at the City's expense.

5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS

5.1. Appointments to the Investment Advisory Committee. (Continued from February 25, 2025)
Confirm Mayor Slater ’s recommendation to appoint: Brian Beelner, Mark Mittmann, Paul Mittmann, Jordan Prell, and Richard Madrigal to the Investment Advisory Committee for two-year terms respectively ending June 30, 2027.

Recommended Action:

Staff ReportAttachments:

6. ADMINISTRATIVE REPORTS

6.1. Orange Police Department 2024 Crime Report/General Overview.

Receive and file.

Recommended Action:

Page 5 of 7 ends

5 City Council Agenda March 25, 2025
Staff Report
2024 Crime Report
2024 Police Annual Report
2024 Homeless and HEART Report
Attachments:

6.2. First Amendment to Agreement for Employment with City Manager Thomas C .

Kisela to revise the termination and severance.

Approve the First Amendment to Agreement for Employment with City Manager Thomas C. Kisela; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
First Amendment to Agreement for Employment of City Manager Attachments:

6.3. Status of the Fiscal Year 2024-2025 budget.

1. Receive and file report.

2. Authorize the continuing appropriation of $119,433.27 to the following accounts:
a. 100.3023.51840.20234 Local-Training Santa Ana College $113,468.02 b. 220.5022.53001.20536 Materials and Supplies-Bev FY23 $4,365.25 c. 100.2016.53340.19322 Craft Supplies - Patron Donations $250 d. 100.2016.53340.19986 Craft Supplies - Patron Donations $1,350

3. Authorize the transfer of $176,328 from the unreserved fund balance of the Major Building Improvements Fund (725) to the General Fund (100) unreserved fund balance.

Recommended Action:

Staff ReportAttachments:

7. STUDY SESSION

7.1. First Budget Study Session for the Fiscal Year 2025-26 General Fund Budget.

Provide direction to staff to prepare the Fiscal Year 2025-26 Preliminary General Fund Budget.

Recommended Action:

Staff Report
First Budget Study Session
Attachments:

8. ADJOURNMENT
The next Regular City Council meeting will be held on Tuesday, April 8, 2025, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.

Page 6 of 7 ends

6 City Council Agenda March 25, 2025
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: March 20, 2025

Page 7 of 7 ends

7 Agenda Item
City Council
Item #: 3.1. 3/25/2025 File #: 25-0174
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

State law requires that all ordinances be read in full either at the time of the introduction or at the time of passage, unless a motion waiving further reading is adopted by a majority of the City Council (Gov.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
8 Agenda Item
City Council
Item #: 3.1. 3/25/2025 File #: 25-0174
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
9 Agenda Item
City Council
Item #: 3.2. 3/25/2025 File #: 25-0132
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Regular Meetings held on February 25 and March 11, 2025.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meetings.

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· February 25, 2025, Regular Meeting minutes
· March 11, 2025, Regular Meeting minutes
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
10 Agenda Item
City Council
Item #: 3.2. 3/25/2025 File #: 25-0132
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Regular Meetings held on February 25 and March 11, 2025.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meetings.

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· February 25, 2025, Regular Meeting minutes
· March 11, 2025, Regular Meeting minutes
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
11 City of Orange
City Council
February 25, 2025

MINUTES - DRAFT
The City Council of the City of Orange, California convened on Tuesday, February 25, 2025, at 5:00 p.m. in a joint Regular Meeting with the Industrial Development Authority of the City of Orange in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

Pursuant to Government Code Section 54953(b), Councilmember Barrios participated in this meeting via teleconference from 701 E. Chapman Avenue, Orange, CA 92866. A copy of the agenda was posted at this location.
5:00 PM CLOSED SESSION

1. CALL TO ORDER
Mayor Slater called Closed Session to order at 5:02 p.m.

1.1 ROLL CALL

Present: Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and Slater

Absent: None
Councilmember Barrios joined Closed Session via teleconference at 5:04 p.m.

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:04 p.m. with all Members present to discuss the following:
a. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9. (One potential case)
b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property Location: 307 E Chapman Avenue
Agency Negotiator: Aaron Schulze, Economic Development Manager Negotiating Parties: Hicham Semaan, Mike Hernandez, Adam Chez Under Negotiation: Price and terms of payment

Page 1 of 9 ends

Draft
12 City Council Minutes - Draft February 25, 2025
c. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1.

Title: Police Chief

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
Closed Session was adjourned at 6:05 p.m.
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor Slater called the joint meeting of the City Council and Industrial Development Authority to order at 6:14 p.m.
(Note: Hereinafter the titles of Mayor, Mayor pro tem, Councilmember, City Attorney, and City Clerk shall be used to indicate Mayor /Chair, Mayor pro tem /Vice Chair, Councilmember /Authority Member /Governing Board Member, City /Authority/Governing Board Attorney, City Clerk /Authority Secretary /Governing Board Clerk.)

1.1 INVOCATION
Given by Pastor Marco Salinas from Spirit and Truth Worship Center.

1.2 PLEDGE OF ALLEGIANCE
Led by Mayor pro tem Denis Bilodeau.

1.3 ROLL CALL

Present: Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and Slater

Absent: None
Councilmember Barrios participated via teleconference.

City Clerk Coleman announced roll call votes would be taken for all action items as long as Councilmember Barrios was participating via teleconference.

1.4 PRESENTATIONS/ANNOUNCEMENTS
Orange High School Student Liaison Nadia Flores and El Modena High School Student Liaison Ximena Quijano Espinoza had scheduling conflicts and were not able to attend the meeting.

1.5 REPORT ON CLOSED SESSION ACTIONS
None

Page 2 of 9 ends

Draft
13 City Council Minutes - Draft February 25, 2025

2. PUBLIC COMMENTS
Councilmember Barrios verified there was no one present that wanted to speak at her location.

Public Speakers:

John Nelson expressed concerns with the City's waste service and street sweeping contract.

Doug Redding commended the CERT program.

Charles Brauer commented on the need for more affordable housing in Orange.

Allis Druffel commented on the need for more affordable housing in Orange.

Gregory Mathes commented on the need for more affordable housing in Orange.

Karen Rutledge commented on the need for more affordable housing in Orange.

Sister Diane Hejna commented on the need for more affordable housing in Orange.

Ben Figueroa stated he received a parking ticket on February 17 which he thought was a holiday.

Mark Lowry commented on the need for more affordable housing in Orange.

Alexis Gutierrez spoke about the division in our country.

James Kushon announced the Orange Dog Park is hosting a K 9 Veterans Day celebration on March 13.

Written Public Comment
Janice Brownfield submitted an email detailing the importance of clean air and air quality.

3.1. Waive reading in full of all ordinances on the Agenda.

ACTION: Approved.

3.2. Agreement with Iteris, Inc. for on -call traffic engineering services and plan review.

ACTION: Approved the agreement with Iteris, Inc. in the amount of $ 250,000 for on-call traffic engineering services and plan review; and authorize the Mayor and City Clerk to execute on behalf of the City.

3.3. Extension of Tolling Agreements between the City and Milan REI X, LLC to further evaluate non -residential uses for the “Brandman site” and the “Creekside Village site.”
Speaker cards were submitted for Item 3.3; therefore, the item was removed from the Consent Calendar for separate consideration.

Page 3 of 9 ends

Draft
14 City Council Minutes - Draft February 25, 2025
Public Speakers:

Dru Whitefeather spoke in opposition of approval.

Bonnie Robinson spoke in support of approval.

ACTION: A motion was made by Mayor pro tem Bilodeau, seconded by Councilmember Gyllenhammer, to approve the extension of the Tolling Agreements with Milan REI X, LLC, for 90 days; and authorize the City Manager to execute the agreements on behalf of the City. The motion carried by the following vote:

Bilodeau, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

BarriosNoes:

NoneAbsent:

3.4. Approval of plans and specifications for Annual Pavement Maintenance at various locations, Fiscal Year 2024-2025; authorization to advertise for bids; and finding of California Environmental Quality Act exemption.

ACTION: 1) Approved the plans and specifications and authorize advertising for Bid No. 24-25.09 (SP-4291), Annual Pavement Maintenance at various locations, Fiscal Year 2024-2025.
2) Found that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1(c) - Existing Facilities).

3.5. Notice of Completion and Acceptance for Glassell Street & La Veta Avenue Water Quality Storm Drain Improvement Project; Bid No. 23-24.38.

Written Comment
Jake Comer submitted an eComment thanking the City for making storm drain improvements and suggested the City conduct public outreach educating residents and businesses about proper recycling and organic waste collection to further reduce trash pollution from entering drains and waterways.

ACTION: 1) Accepted Notice of Completion and Acceptance for Glassell Street & La Veta Avenue Water Quality Storm Drain Improvement Project (D-182) as complete. 2) Authorized City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

3.6. Notice of Completion and Acceptance for Main Library HVAC Replacement Project; Bid No. 22-23.34.

ACTION: 1) Accepted Main Library HVAC Replacement Project (SP-4049) as complete; and 2) Authorized City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

3.7. Second Reading and adoption of an Ordinance of the City Council of the City of Orange establishing parking meter zones, operations, fees, and procedures .

Ordinance No. 02-25. (Continued from February 11, 2025) Speaker cards were submitted for Item 3.7; therefore, the item was removed from the Consent Calendar for separate consideration.

Councilmember Barrios recused herself from Item 3.7 due to a potential conflict with a nearby property. She was muted from the call at 6:52 p.m. and did not participate in the discussion.

Page 4 of 9 ends

Draft
15 City Council Minutes - Draft February 25, 2025
Public Speakers:

Peter Wetzel spoke in opposition of adopting the ordinance.

AJ Ricci spoke in support of adopting the ordinance.

Brandy Romero expressed concerns with parking enforcement.

Staff responded to Council's questions regarding time constraints and exploring solutions for the Main Library if parking becomes an issue.

ACTION: A motion was made by Councilmember Tavoularis, seconded by Mayor Slater, to adopt Ordinance No. 02-25. The motion carried by the following vote:

Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

Bilodeau, and DumitruNoes:

NoneAbsent:

BarriosRecuse:

Councilmember Barrios was unmuted and returned to the meeting at 7:06 p.m. via teleconference.

3.8. Second Reading and adoption of an Ordinance of the City Council of the City of Orange containing administrative updates to various sections of Titles 9, 10, 12, and 13 of the Orange Municipal Code. Ordinance No. 03-25.

ACTION: Adopted Ordinance No. 03-25.

3.9. Authorize single source purchase and installation of four Opticom GPS Emergency Vehicle Preemption Systems from DDL Traffic, Inc.

ACTION: Approved the single source purchase and installation of four Opticom GPS Emergency Vehicle Preemption Systems from DDL Traffic, Inc. for an amount not to exceed $47,500.

3.10. Authorize purchase of second year maintenance of Assureon Trusted System and support from Complete Paperless Solutions, LLC as a single source vendor.

ACTION: Approved the purchase of second year maintenance of Assureon Trusted System and support services from Complete Paperless Solutions, LLC for $34,926.00.

3.11. Authorize purchase for repairs to the Fire Department aerial truck and other apparatus and designate Fire Apparatus Solutions as a single source vendor.

ACTION: Authorized purchase for repairs from Fire Apparatus Solutions for Fiscal Year 2024-2025 in an amount not to exceed $ 100,000, funded through the Equipment Expense Fund (710).

ITEMS RELATED TO THE INDUSTRIAL DEVELOPMENT AUTHORITY

3.12. Adoption of a resolution amending the Bylaws of the Industrial Development Authority of the City of Orange. Resolution No. IDA-006.

ACTION: Adopted Resolution No. IDA-006. A Resolution of the Industrial Development Authority of the City of Orange, California amending the Bylaws of the Industrial Development Authority of the City of Orange.

Page 5 of 9 ends

Draft
16 City Council Minutes - Draft February 25, 2025
Approval of the Consent Calendar
Items 3.3 and 3.7 were removed from the Consent Calendar and heard separately .

Councilmember Barrios recused from Item 3.7. All other items were approved as recommended.

A motion was made by Councilmember Gutierrez, seconded by Councilmember Dumitru, to approve the Consent Calendar as recommended. The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

END OF CONSENT CALENDAR
* * * * * * * *

4. REPORTS FROM MAYOR SLATER
Mayor Slater requested policy changes regarding specification of street sweeping holidays. With Council consensus, staff was directed to draft a resolution listing official observed street sweeping holidays.

5. REPORTS FROM COUNCILMEMBERS

5.1. Highlight Local Business (Gutierrez)
Councilmember Gutierrez highlighted the following local business: Dulceria Cami Yoli.

5.2. Other Councilmember Reports
Councilmember Gutierrez reported the Orange City/ Schools Coordinating Committee discussed the crossing guard program and use of city facilities at their last meeting.

Mayor pro tem Bilodeau reported the Foothill /EasternTransportation Corridor Agency successfully managed an early pay down of $ 200 million of bond debt and plan to pay down another $ 720 million of bonds over the next five years resulting in a $ 3.1 billion reduction in debt of the toll roads.

Mayor pro tem Bilodeau also requested updates to the current backyard chicken ordinance. With Council consensus, staff will schedule the ordinance for consideration on a future meeting agenda.

6. AB 1234 REPORTS
None

7. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS

7.1. Appointment to the City Traffic Commission.

A motion was made by Mayor pro tem Bilodeau, seconded by Councilmember Dumitru, to appoint Doug Redding to the City Traffic Commission to fill an unexpired term ending June 30, 2027. The motion carried by the following vote:

Page 6 of 9 ends

Draft
17 City Council Minutes - Draft February 25, 2025
Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

7.2. Appointments to the Investment Advisory Committee.

A motion was made by Councilmember Dumitru, seconded by Mayor pro tem Bilodeau, to continue this item to a future meeting date to allow the City Treasurer time to review the applications. The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

7.3. Appointment of Orange County Mosquito and Vector Control District Board of Trustees representative.

Entered into the record: Sean Chavarria's resume for consideration as appointee to the OC Mosquito and Vector Control Board of Trustees.

A motion was made by Mayor Slater, seconded by Councilmember Dumitru, to appoint Sean Chavarria to the Orange County Mosquito and Vector Control District Board of Trustees to fill an unexpired term ending January 5, 2026. The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

8. REPORTS FROM CITY MANAGER

8.1. Audit and Organizational Assessment
City Manager Kisela recommended using the City's Audit Advisory Committee to review budget and audit reports from 2008 to the present and then summarize their findings at a Council meeting.

Public Speaker:

Reggie Mundekis spoke in support of the City Manager's recommendation.

Council discussed conducting an organizational assessment, the cost, and using the Audit Committee to review financials.

With Council consensus, staff was directed to use the Audit Advisory Committee to review financial reports and Prop 218 as it relates to the City's waste service and street sweeping agreement. In addition, staff was directed to prepare a Request for Proposals for an organizational assessment.

City Manager Kisela also discussed creating a 5-10 year Fiscal Strategic Plan. The plan would establish a roadmap for the City to obtain fiscal stability. Staff was directed to schedule a presentation at a future Council meeting.

Page 7 of 9 ends

Draft
18 City Council Minutes - Draft February 25, 2025

9. ADMINISTRATIVE REPORTS

9.1. Amendments to Memorandum of Understanding between the City of Orange and the Orange City Fire Management Association, Executive Management and Senior Management employees’ classification terms, and Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2 Section 570.5. Resolution Nos. 11598, 11599, and 11600.

A motion was made by Councilmember Dumitru, seconded by Councilmember Gutierrez, to:
1) Adopt Resolution No. 11598. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11494 and all amendments thereto and approving the Memorandum of Understanding between the City of Orange and the Orange City Fire Management Association concerning classification matters effective July 1, 2023, through and including June 30, 2026.
2) Adopt Resolution No. 11599. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11577 and all amendments thereto and approving provisions relating to the classification terms of employment of Executive and Senior Management employees.
3) Adopt Resolution No. 11600. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11588 and amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2 Section 570.5.

The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

9.2. Employment Agreement of a retired annuitant for the vacant position of Interim City Attorney pursuant to Government Code Section 21221(h). Resolution No . 11601.

A motion was made by Mayor pro tem Bilodeau, seconded by Councilmember Tavoularis, to adopt Resolution No. 11601. A Resolution of the City Council of the City of Orange approving the Employment Agreement of a retired annuitant for the position of Interim City Attorney, pursuant to Government Code Section 21221(h). The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

9.3. Fiscal Year 2025-2030 Citywide Strategic Plan Quarterly Update.

Senior Assistant to the City Manager Jack Morgan provided an update utilizing a PowerPoint presentation and answered Council's questions.

The report was received and filed.

9.4. Monthly Treasurer’s Reports for October, November, and December 2024.

City Treasurer Garrett Smith presented the report.

The report was received and filed.

Page 8 of 9 ends

Draft
19 City Council Minutes - Draft February 25, 2025

10. ADJOURNMENT
There being no further business, the meeting was adjourned at 8:13 p.m.

The next Regular City Council Meeting will be held on Tuesday, March 11, 2025, at 6:00 p.m. in the Council Chamber, with Closed Session beginning at 5:00 p.m. if necessary.
______________________ _________________________ PAMELA COLEMAN DANIEL R. SLATER

CITY CLERK MAYOR

Page 9 of 9 ends

Draft
20 City of Orange
City Council
March 11, 2025

MINUTES - DRAFT
The City Council of the City of Orange, California convened on Tuesday, March 11, 2025, at 5:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.
5:00 PM CLOSED SESSION

1. CALL TO ORDER
Mayor Slater called Closed Session to order at 5:02 p.m.

1.1 ROLL CALL

Present: Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and Slater

Absent: Bilodeau
Councilmember Dumitru joined Closed Session at 5:05 p.m.

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:03 p.m. with all Members present, except Councilmember Dumitru who joined Closed Session at 5:05 p.m. and Councilmember Bilodeau who was absent, to discuss the following:
a. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1
Title: City Manager
b. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1
Title: City Attorney
c. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9. (One potential case)

4. CLOSED SESSION REPORT
None

Page 1 of 8 ends

Draft
21 City Council Minutes - Draft March 11, 2025

5. ADJOURNMENT
Closed Session was adjourned at 5:50 p.m.
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor Slater called the meeting to order at 6:02 p.m.

1.1 INVOCATION
Given by Reverend Dr. Timothy Klinkenberg from St. John’s Lutheran Church.

1.2 PLEDGE OF ALLEGIANCE
Led by Councilmember Ana Gutierrez.

1.3 ROLL CALL

Present: Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and Slater

Absent: Bilodeau

1.4 PRESENTATIONS/ANNOUNCEMENTS
El Modena High School Student Liaison Ximena Quijano Espinoza provided Council with a brief update on school happenings.

Orange High School Student Liaison Nadia Flores provided Council with a brief update on school happenings.

1.5 REPORT ON CLOSED SESSION ACTIONS
None

2. PUBLIC COMMENTS
Public Speakers:

John Nelson commented on the street sweeping fee structure.

Greg Arrowsmith spoke about his meetings with City staff.

Cesar Grijalva spoke about maintenance issues with a tree at Handy Park.

Brandy Romero discussed a New York Life Women's Month event.

Written Public Comment
Janice Brownfield emailed about the importance of recycling organic waste.

Martha Torres submitted an eComment informing Council of the services Fair Housing Foundation provides residents.

Page 2 of 8 ends

Draft
22 City Council Minutes - Draft March 11, 2025

3.1. Waive reading in full of all ordinances on the Agenda.

ACTION: Approved.

3.2. Confirmation of accounts payable warrant registers dated February 6, 13, 20, and 27, 2025 and payroll check warrants dated January 31, 2025 and February 14, 2025.

ACTION: Ratified the accompanying registers.

3.3. Approval of minutes of the City of Orange City Council Regular Meeting held on February 11, 2025.

ACTION: Approved minutes as presented.

3.4. Agreement with HASA, Inc. for maintenance of Hart Park Pools; Bid No. 24-25.10.

ACTION: Approved the four -year agreement with HASA, Inc. in the amount of $223,222.80 for maintenance of the Hart Park pools; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.5. Agreement with Protel Communications, Inc. DBA ProTelesis for telephone service support.

ACTION: Approved the agreement with Protel Communications, Inc. DBA ProTelesis in the amount of $ 198,660.12 for telephone service support; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.6. License agreement for the use of public parking lots by the Rotary Club of Orange Plaza during the Orange Plaza Rotary Club Car Show.

A speaker card was submitted for Item 3.6; therefore, the item was removed from the Consent Calendar for separate consideration.

Public Speaker:

Tracey Curtis spoke in support of approval and requested the Mayor serve as a judge in the upcoming car show.

ACTION: A motion was made by Councilmember Gutierrez, seconded by Councilmember Gyllenhammer, to approve the license agreement with the Rotary Club of Orange Plaza to sell parking spaces at the Main Branch Library lot and West City Hall lot during the annual car show on April 13, 2025; and authorize the City Manager and City Clerk to execute on behalf of the City. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

Page 3 of 8 ends

Draft
23 City Council Minutes - Draft March 11, 2025

3.7. Accept U .S. Department of Justice, Office of Community Policing Services, Fiscal Year 2023-2024 Technology and Equipment Program grant in the amount of $825,000 (Award No. 15JCOPS-24-GG-02118-TECP).

ACTION: 1) Approved grant agreement with the U .S. Department of Justice in the amount of $ 825,000 for the Technology and Equipment Program and authorize the City Manager to execute on behalf of the City.
2) Accepted into the City ’s Reimbursable Capital Projects (550) revenue budget $825,000 in grant funds from the U.S. Department of Justice to:
550.4011.45495.30261 Other Grant Revenue - TEP Grant FY24 3) Authorized the appropriation of $825,000 into Reimbursable Capital Projects (550):
550.4011.56032.30261 Equipment Additions - TEP Grant FY24

3.8. Award of Contract to CJ Concrete Construction, Inc. for Annual Concrete Replacement at Various Locations, Fiscal Year 2024-2025; Bid No. 24-25.11 (SP-4297).

ACTION: Approved the contract with CJ Concrete Construction, Inc. in the amount of $1,193,610, representing an original amount of $ 1,085,100 plus a 10% contingency of $108,510 for Annual Concrete Replacement at Various Locations, Fiscal Year 2024-2025; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.9. Purchase and installation of Mobile Data Computers and vehicle docking stations for Police patrol fleet.

ACTION: 1) Approved the purchase of 40 Mobile Data Computers and vehicle docking stations from CDCE, Inc. for a total amount of $ 322,961 representing equipment and labor of $313,961, plus a contingency of $9,000.
2) Authorized the appropriation of $ 100,000 from the Federal Asset Forfeiture (355) unreserved fund balance to:
355.4011.56032.20335 Federal Asset Forfeiture - Equipment

3.10. Annual Comprehensive Financial Report and Related Financial Reports for the Fiscal Year ended June 30, 2024.

Item 3.10 was removed from the Consent Calendar for separate consideration by Councilmember Gyllenhammer.

In response to Council's question, staff provided a brief synopsis of the audit process.

ACTION: A motion was made by Councilmember Gyllenhammer, seconded by Councilmember Tavoularis, to receive and file the following documents for the fiscal year ended June 30, 2024:

1. Annual Comprehensive Financial Report

2. Audit Communication Letter

3. Independent Accountants' Report on Agreed -Upon Procedures Applied to the Appropriations Limit Worksheets

4. Independent Accountants' Report on Agreed -Upon Procedures Applied to the Investment Portfolio

5. Air Pollution Reduction Fund Financial Statements and Independent Auditors' Report

6. Independent Auditors' Report on Internal Control Over Financial Reporting

Page 4 of 8 ends

Draft
24 City Council Minutes - Draft March 11, 2025

7. Housing Successor Fund Financial Statements
The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

Approval of the Consent Calendar
Items 3.6 and 3.10 were removed from the Consent Calendar and heard separately. All other items were approved as recommended.

A motion was made by Councilmember Barrios, seconded by Councilmember Gyllenhammer, to approve the Consent Calendar as recommended. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

END OF CONSENT CALENDAR
* * * * * * * *

4. REPORTS FROM MAYOR SLATER

4.1. Orange celebrates the U.S. Semiquincentennial
Mayor Slater reported there is a nationwide and countywide effort to celebrate the United States' 250th Anniversary during 2026. He suggested designating Orange as an "America250 City" through America 250.org, a nonpartisan initiative. Council discussed having the Park Planning and Community Events Commission coordinate with community organizations to plan events throughout the year.

A motion was made by Councilmember Tavoularis, seconded by Councilmember Barrios, to designate Orange as an America 250 City and task the Park Planning and Community Events Commission to coordinate events throughout the year. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

4.2. Other Reports from Mayor Slater
Mayor Slater also reported that he was contacted by the Chair of the Outreach and Excursions Committee for the Los Angeles Fleet Week. They have invited Orange to be the Orange County host city for this year's Fleet Week scheduled for May 21-26, 2025. The City would hold a welcome ceremony in front of City Hall on Thursday, May

22. 5. REPORTS FROM COUNCILMEMBERS
None

6. AB 1234 REPORTS
None

Page 5 of 8 ends

Draft
25 City Council Minutes - Draft March 11, 2025

7. REPORTS FROM CITY MANAGER

7.1. Parking Enforcement Program Review and Update
Interim Police Chief Dan Adams provided a brief update.

7.2. Budget Risk and Economic Opportunities Advisory Services Presentation.

Jack Morgan introduced Shawn Stewart, Principal Risk Advisory Services, from Grant Thorton. Mr. Stewart presented the staff report and answered Council's questions regarding cost and timeline.

A motion was made by Councilmember Barrios, seconded by Councilmember Dumitru, to move forward with Grant Thorton's services using a sole source agreement. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

RECESS: The City Council recessed at 7:25 p.m. and reconvened at 7:41 p.m. with all Members present, except for Councilmember Bilodeau who was absent.

8. ADMINISTRATIVE REPORTS

8.1. Memorandum of Agreement between the City of Orange and the Mabury Ranch Homeowner’s Association for tree maintenance.

Entered into the record: A report prepared by the City's tree arborist relative to the condition of the trees under consideration to be maintained by the City of Orange.

Public Works Director Chris Cash provided the staff report and a brief history of tree maintenance within the Mabury Ranch Homeowner's Association. Mr. Cash reiterated the City will assume liability of all trees included in the arborist's report once the Memorandum of Agreement (MOA) is approved and fully executed.

Public Speakers:

Nathan Swanek, Mabury Ranch HOA President, spoke in support of approval.

Stephanie Tilhof spoke in opposition of removal of the Canary Island Pine trees.

Leslie Manderscheid requested a continuance to allow residents to review the MOA.

Nancy Edwards spoke in support of approval.

Cathy Clark spoke in support of approval.

Written Public Comments
Mabury Ranch HOA submitted a letter in support of approval.

The following submitted an email in support: Adam Howard and Logan Ascher.

The following submitted an email in opposition: Kelly Herbeck, Jackie Armes, and Jim Herbeck.

Page 6 of 8 ends

Draft
26 City Council Minutes - Draft March 11, 2025
Jake Comer submitted an eComment requesting a continuance.

Bill Melcher submitted an eComment opposing the removal of the Canary Island Pine trees.

During discussion, it was disclosed that the HOA Board has not formerly approved the MOA at a Board meeting. City Attorney Winthers advised Council to continue the item until the Board approves the MOA.

A motion was made by Councilmember Barrios, seconded by Councilmember Dumitru, to continue Item 8.1 until the Board approves the MOA. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

8.2. Review of the proposed Financial Management Policies.

Finance Director Trang Nguyen provided the staff report and answered Council's questions. Staff will return with a final policy for Council's consideration in May.

A motion was made by Councilmember Barrios, seconded by Councilmember Gyllenhammer, to accept the report and direct staff to return with a final Financial Management Policy for Council approval. The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

8.3. Quarterly Update for the Fiscal Year 2024-2025 Economic Development Implementation Plan.

Economic Development Manager Aaron Schulze and Recreation Services Manager Dani Milloy provided the staff report.

The report was received and filed.

9. LEGAL AFFAIRS

9.1. Introduction and First Reading of an Ordinance of the City of Orange repealing and replacing Chapter 10.10 of the Orange Municipal Code pertaining to bicycles .

Ordinance No. 05-25.

Council discussed decreasing the speed limit on bike paths, enforcement, and implementing age restrictions.

A motion was made by Councilmember Dumitru, seconded by Mayor Slater, to introduce and conduct First Reading of Ordinance No. 05-25 with the following revision :
decreasing speed limit to 20 mph and prohibiting Class 3 e-bikes on bike paths /trails.

An Ordinance of the City Council of the City of Orange repealing and replacing Chapter

10.10 of the Orange Municipal Code pertaining to bicycles.

The motion carried by the following vote:

Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

BilodeauAbsent:

Page 7 of 8 ends

Draft
27 City Council Minutes - Draft March 11, 2025

10. ADJOURNMENT
There being no further business, the meeting was adjourned at 9:27 p.m.

The next Regular City Council meeting will be held on Tuesday, March 25, 2025, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.
______________________ _________________________ PAMELA COLEMAN DANIEL R. SLATER

CITY CLERK MAYOR

Page 8 of 8 ends

Draft
28 Agenda Item
City Council
Item #: 3.3. 3/25/2025 File #: 25-0166
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
First Amendment to Agreement with Willdan Engineering for on-call building services.

2. SUMMARY
First Amendment to Agreement with Willdan Engineering to augment existing Building Division staff with the use of professional consultants to maintain service levels at the permit counter, plan check, and building inspection services as needed.

3. RECOMMENDED ACTION
Approve amendment to the agreement with Willdan Engineering in the amount of $305,000, for a total not-to-exceed amount of $405,000, for on-call building services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this amendment is $305,000 and will be funded through department unspent salary budget from General Fund (100) due to vacancies:
100.6031.51670.00000 Other Professional and Consulting Services

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

6. DISCUSSION AND BACKGROUND
Willdan Engineering (Willdan) provides on-call building and safety services for building inspection, plan check, and permit services. On-call services are used during periods of staff vacancies and to assist with high-profile projects requiring additional inspection services. Furthermore, on-call services are utilized to augment current staffing for building inspection, plan check, and permit issuance when backlog occurs to maintain service levels to the community.

In addition, Willdan offers accessibility compliance services for commercial and multi-family development. These services are funded with fees collected through the Certified Access Specialist program when business licenses (or equivalent permits) are issued. The $1 fee is collected as part of California Senate Bill 1186. This state legislation was enacted in 2012 to increase construction- related disability access and compliance as well as to develop federal and state disability law City of Orange Printed on 3/20/2025Page 1 of 2
powered by Legistar™
29 Item #: 3.3. 3/25/2025 File #: 25-0166
educational resources for businesses.

The agreement with Willdan Engineering will be funded with salary savings in the Building Division from the following vacant positions:
· Plan Check Engineer.
· Two Combination Building Inspectors.
· Senior Combination Building Inspector for routine operational needs.

There are currently three candidates in background for the two Combination Building Inspector and the Senior Combination Building Inspector positions. Recruitment is ongoing for the Plan Check Engineer.

The proposed amendment enables the City to sustain essential services while the onboarding process for the new candidates is completed. Furthermore, staff requests funding through August 2025 should a candidate not complete the background process, necessitating the use of continued consultant services.

7. ATTACHMENTS
· First Amendment to Agreement with Willdan Engineering City of Orange Printed on 3/20/2025Page 2 of 2
powered by Legistar™
30 Agenda Item
City Council
Item #: 3.3. 3/25/2025 File #: 25-0166
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
First Amendment to Agreement with Willdan Engineering for on-call building services.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

In addition, Willdan offers accessibility compliance services for commercial and multi-family development. These services are funded with fees collected through the Certified Access Specialist program when business licenses (or equivalent permits) are issued. The $1 fee is collected as part of California Senate Bill 1186. This state legislation was enacted in 2012 to increase construction- related disability access and compliance as well as to develop federal and state disability law City of Orange Printed on 3/20/2025Page 1 of 2
powered by Legistar™
31 Item #: 3.3. 3/25/2025 File #: 25-0166
educational resources for businesses.

7. ATTACHMENTS
· First Amendment to Agreement with Willdan Engineering City of Orange Printed on 3/20/2025Page 2 of 2
powered by Legistar™
32 33
34 Agenda Item
City Council
Item #: 3.4. 3/25/2025 File #: 25-0152
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange repealing and replacing Chapter 10.10 of the Orange Municipal Code pertaining to bicycles. Ordinance No. 05- 25 .

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was discussed, amended and approved at a Regular Council Meeting on March 11, 2025.

The amended Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Barrios, Dumitru, Tavoularis, Gutierrez, Gyllenhammer, Slater
NOES: None
ABSENT: Bilodeau

3. RECOMMENDED ACTION
Adopt Ordinance No. 05-25.

4. ATTACHMENTS
· Ordinance No. 05-25
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
35 Agenda Item
City Council
Item #: 3.4. 3/25/2025 File #: 25-0152
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was discussed, amended and approved at a Regular Council Meeting on March 11, 2025.

The amended Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Barrios, Dumitru, Tavoularis, Gutierrez, Gyllenhammer, Slater
NOES: None
ABSENT: Bilodeau

3. RECOMMENDED ACTION
Adopt Ordinance No. 05-25.

4. ATTACHMENTS
· Ordinance No. 05-25
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
36 ORDINANCE NO. 05-25

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF ORANGE REPEALING AND REPLACING
CHAPTER 10.10 OF THE ORANGE MUNICIPAL
CODE PERTAINING TO BICYCLES.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

Chapter 10.10 is hereby repealed and replaced in its entirety as follows:

Chapter 10.10

BICYCLES ORDINANCE
Sections:

10.10.010 – Definitions.

10.10.020 – Repairs and Sales of Bicycles and Bicycle Parts on Public Property.

10.10.030 – Bicycle Lanes and Trails Established.

10.10.040 – Bicycle Lane and Trails Speed Limit Established.

10.10.050 – Bicycle and Electric Bicycle Registration Optional.

10.10.060 – Registration Fees.

10.10.070 – Riding in an Unsafe Manner.

10.10.080 – Riding on Bicycle Lane or Trails.

10.10.090 – Riding on Sidewalks.

10.10.100 – Improper Parking on Bicycle Lanes.

10.10.110 – Enforcement.

10.10.010 – Definitions.

For purposes of this chapter, the following definitions shall apply:
“Bicycle” means a device propelled exclusively by human power through pedals, having one or more wheels, and designed to transport a person or persons. “Electric Bicycle” (E-Bike) means a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts (1 horsepower), classified as follows:
 Class 1 E-Bike: Pedal-assist with assistance ceasing at 20 mph.  Class 2 E-Bike: Throttle-powered with assistance ceasing at 20 mph.  Class 3 E-Bike: Pedal-assist with assistance ceasing at 28 mph, with a speedometer required.
37 2
If a conveyance does not fall within the above listed categories, it is no longer considered an electric bicycle and may not be permitted on the roadway without proper licensing and vehicle registration requirements. It is unlawful to modify or tamper with electric bicycles in a way that changes the speed capability, unless the rider also changes the bicycle’s classification under the California Vehicle Code.
“Bicycle Lane” means a portion of a roadway designated for bicycles and e-bikes, marked by signage and striping.
“Bicycle Trail” means a separate pathway for bicycles and other non-motorized traffic. “Sidewalk” means a portion of a street intended for pedestrian use. “Business District” means an area primarily used for commercial purposes as defined in the California Vehicle Code.
“Unsafe Manner” means any act or acts in violation of the Orange Municipal Code, California Vehicle Code, or other existing law. An “unsafe manner” can also be defined as operating the conveyance in such a way as to constitute a danger to the operator, a passenger, other motorists, other rider, or pedestrians in the area.

10.10.020 – Repairs and Sales of Bicycles and Bicycle Parts on Public Property.

No person shall assemble, disassemble, sell, offer to sell, distribute, offer to distribute, store, or possess the following items on any street, sidewalk, alley, or public property:

A. A bicycle frame with the gear cables or brake cables cut; B. Three (3) or more bicycles and/or bicycle frames, with or without missing parts (the term “parts” shall mean handles, handlebars, wheels, forks, pedals, cranks, seats, or chains); or C. Five (5) or more bicycle parts that are not attached to a bicycle.

This prohibition shall not apply when:

A. An individual is operating under a valid City of Orange license or permit authorizing such activities; or
B. The owner of a bicycle or bicycle part is present during the repair of their single bicycle or bicycle part. Supporting evidence for a claim of lawful ownership may include, but is not limited to, video or photographic evidence, a bill of sale, the correct serial number, bicycle registration, or bicycle license.

10.10.030 – Bicycle Lanes and Trails Established.

The Public Works Department shall erect and maintain appropriate signs and markings to establish and maintain bicycle lanes, trails, and shared-use paths within the City in accordance with California Vehicle Code Sections 21207 and 21207.5.
38 3

10.10.040 – Bicycle Lane and Trails Speed Limit Established.

The speed limit on bicycle lanes, trails, and shared-use paths within the City, as specified by California Vehicle Code Sections 21207 and 21207.5, is set at 20 mph.

10.10.050 – Bicycle and Electric Bicycle Registration Optional.

No person shall be required to register or license a bicycle or electric bicycle to operate it on public streets, sidewalks, alleys, bicycle lanes, trails, or other public property. The City may offer a voluntary registration program to assist in recovery in case of theft.

10.10.060 – Registration Fees.

Any fees for optional registration shall be set by City Council resolution.

10.10.070 – Riding in an Unsafe Manner
No person shall ride a conventional bicycle, electric bicycle, moped, motor-driven cycle, electric motorcycle, pocket bike, or any other electric conveyance not previously named in an unsafe manner on a public roadway, highway, sidewalk, park, off-street parking facility, or private property open to the public.

Prohibited behaviors include, but are not limited to, the following actions:

1. Riding on a sidewalk without due caution for pedestrians.

2. Riding on a sidewalk, bicycle path, or bicycle lane against the flow of traffic.

3. Not yielding to vehicles or pedestrians when required by the California Vehicle Code.

4. Intentionally swerving or riding around stopped or slowed traffic.

5. Carrying passengers on bicycles or e-bikes not designed for multiple riders.

6. Disobeying posted traffic signs or signals.

7. Riding without a properly fitted and fastened helmet when under the age of 18.

8. Intentionally lifting one or more wheels into the air while riding.

9. Riding on a bicycle path, bicycle lane, trail, or sidewalk at a speed greater than reasonable or prudent under the existing conditions, or at a speed which endangers the safety of persons or property.

10. Failing to utilize a bicycle path or trail in City parks. 39 4

11. Holding and operating a handheld wireless telephone or an electronic wireless communications device.

10.10.080 – Riding on Bicycle Lane or Trails.

No Class 3 electric bicycle shall be operated on a bicycle path or trail, bikeway, bicycle lane, equestrian trail, or hiking or recreational trail.

10.10.090 – Riding on Sidewalks.

A. Riding bicycles or e-bikes on sidewalks is prohibited in business districts unless explicitly allowed by signage.

B. Where sidewalk riding is permitted, operators must:

1. Yield to pedestrians and exercise due care.

2. Provide an audible signal before overtaking and passing pedestrians.

3. Operate at a maximum speed of 10 mph and reduce speed to 5 mph when pedestrians are present.

10.10.100 – Improper Parking on Bicycle Lanes.

No operator of a motor vehicle shall park on, along, over, onto or upon, an established and officially designated bicycle lane between the hours of 7:00 am to 9:00 am and 2:00 pm to 4:00 pm, except Holidays, Saturday and Sunday, as permitted by State law, where necessary to park where permitted, to enter or leave the roadway, or to prepare for a turn that is less than 200 feet from an intersection.

10.10.110 – Enforcement.

Nothing in this Chapter shall limit the City from pursuing administrative, civil, or criminal citations or to abate public nuisances or violations of this Chapter in accordance with 1.08 and 1.10 of the Orange Municipal Code.

SECTION II:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
40 5
SECTION III:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.

ADOPTED this ____ day of ___________________, 2025.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:

Wayne W. Winthers, Interim City Attorney

STA TE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 2025, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2025 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
41 Agenda Item
City Council
Item #: 5.1. 3/25/2025 File #: 25-0128

1. SUBJECT
Appointments to the Investment Advisory Committee. (Continued from February 25, 2025)

2. SUMMARY
With the adoption of Ordinance No. 03-24 and Resolution No. 11536 (adopted on March 12, 2024, and April 9, 2024, respectively), the Investment Advisory Committee was reinstated.

Resolution No. 11536 established the Committee’s qualifications for appointment including the number of representatives and terms. The newly reinstated Investment Advisory Committee shall consist of seven voting members with a term of two years. The City Treasurer and Finance Director (or their designee) shall serve as advisory non-voting members.

3. RECOMMENDED ACTION
Confirm Mayor Slater’srecommendation to appoint: Brian Beelner, Mark Mittmann, Paul Mittmann, Jordan Prell, and Richard Madrigal to the Investment Advisory Committee for two-year terms respectively ending June 30, 2027.

4. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
42 Agenda Item
City Council
Item #: 5.1. 3/25/2025 File #: 25-0128

1. SUBJECT
Appointments to the Investment Advisory Committee. (Continued from February 25, 2025)

2. SUMMARY
With the adoption of Ordinance No. 03-24 and Resolution No. 11536 (adopted on March 12, 2024, and April 9, 2024, respectively), the Investment Advisory Committee was reinstated.

4. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
43 Agenda Item
City Council
Item #: 6.1. 3/25/2025 File #: 25-0062
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Dan Adams, Interim Chief of Police

1. SUBJECT
Orange Police Department 2024 Crime Report/General Overview.

2. SUMMARY
The 2024 Crime Report is prepared by the Orange Police Department and includes crime statistics and information on arrests and calls for service.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Objective1.5: Develop plans, policies, and procedures consistent with national standards Goal 1: Maintain Strong Emergency and Safety Services
Objective1.6: Assist those experiencing homelessness

6. DISCUSSION AND BACKGROUND
In preparation for upcoming policy discussions related to the Fiscal Year 2025-2026 budget process, the City Council directed staff to provide a crime report for 2024. The attached report was prepared by the Orange Police Department and includes crime statistics along with the number of calls for service and arrests.

Also included is the Homeless Engagement and Resource Team (HEART) annual homeless report.

The 2024 Homeless and HEART report includes homeless related crime statistics and the progression of outreach services provided to the homeless community.

7. ATTACHMENTS
· 2024 Crime Report
· 2024 Police Annual Report
· 2024 Homeless and HEART Report
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
44 Agenda Item
City Council
Item #: 6.1. 3/25/2025 File #: 25-0062
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Dan Adams, Interim Chief of Police

1. SUBJECT
Orange Police Department 2024 Crime Report/General Overview.

2. SUMMARY
The 2024 Crime Report is prepared by the Orange Police Department and includes crime statistics and information on arrests and calls for service.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

Also included is the Homeless Engagement and Resource Team (HEART) annual homeless report.

The 2024 Homeless and HEART report includes homeless related crime statistics and the progression of outreach services provided to the homeless community.

7. ATTACHMENTS
· 2024 Crime Report
· 2024 Police Annual Report
· 2024 Homeless and HEART Report
City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
45 TRUST ▪ CARE ▪ COMMITMENT

OFFICE OF THE CHIEF OF POLICE

Memorandum
To: Tom Kisela, City Manager

From: Dan Adams, Chief of Police

Date: March 3, 2025

Re: 2024 Crime Report
__________________________________________________________________________________ There was a 10% decrease in crime from 2023 to 2024. The following is a summary of Crimes Against Persons and Crimes Against Property for 2024 in comparison to 2023 (January 1st through December 31st).
2024 Crimes Against Persons Offenses
 HOMICIDE – Homicides decreased 40% from 5 in 2023 to 3 in 2024.

o All three homicides involved vehicular manslaughter.
 Two incidents involved a suspect who was driving under the influence. The suspects were arrested in both incidents.
 One incident involved a suspect who drove recklessly on a motorcycle, killing his passenger.

The investigation is ongoing.
 SEXUAL ASSAULT – Sexual assaults decreased 11% from 9 in 2023 to 8 in 2024. o One incident occurred after the victim met the suspect online and agreed to meet at a hotel. The suspect was arrested and the case was sent to the District Attorney. o One incident occurred during the commission of a robbery at a massage parlor. The suspect was tied to other similar robberies in the county and subsequently arrested by ATF. o One incident occurred after the victim met the suspect and another individual and agreed to go to a motel. The case is pending with the District Attorney. o Five of the incidents involved a suspect known to the victim (friend, boyfriend, and family member).
 In one incident, the case was sent to the District Attorney and rejected for lack of sufficient evidence.
 In one incident, the suspect was arrested, and the case is still pending with the District Attorney.
*Negligent manslaughter including DUI and reckless driving are included per NIBRS. 46  In two incidents, the victims did not desire prosecution.  One incident is still under investigation and will be sent to the District Attorney for review.  AGGRAVATED ASSAULT – Aggravated assaults decreased slightly by 0.5% from 206 in 2023 to 205 in 2024.
o 43 aggravated assaults involved brandishing a weapon. o 58 aggravated assaults involved domestic violence.
o 12 aggravated assaults involved family members.
o 6 aggravated assaults involved child abuse/endangerment/elder abuse. o 7 aggravated assaults were gang related.
o 1 involved a knife.
o 6 involved a firearm.
o 4 aggravated assaults involved road rage.
o 4 aggravated assaults involved the use of a vehicle as the weapon. o 9 aggravated assaults were committed against police officers/medical personnel. o 4 aggravated assaults were related to bars.
o 15 aggravated assaults involved incidents between roommates, friends, acquaintances, co- workers, neighbor, and landlord.
o 36 aggravated assaults involved suspects not known to victims. o 7 aggravated assaults involved the discharge of a firearm which were not gang related.  Suspects were arrested in 84% of aggravated assaults. 21 of them were transients.

2024 Crimes Against Property Offenses
 ROBBERY – Robberies increased by 19% from 97 in 2023 to 115 in 2024.

o 22 out of the 115 robberies occurred at The Outlets.
 18 of The Outlet robberies were “Estes” robberies where the suspect(s) stole an item(s) from a commercial store and threatened force or used force when confronted by an employee. The force ranged from verbal threats, threat of a simulated weapon, brandishing a knife, brandishing a taser, brandishing a firearm, and physical assaults including pushing/punching/etc.
 3 of The Outlet robberies involved groups of juvenile suspects.  1 of The Outlet robberies involved a suspect who punched the victim and stole his phone. o 27 of the 115 robberies were street robberies.
o 1 incident was a home invasion robbery.
o 2 incidents were carjackings.
o 13 incidents were robberies of commercial establishments (gas stations, businesses, bank). o 9 incidents were related to domestic violence.
o 2 incidents occurred as the result of an online arrangement to meet and purchase an item. o 2 incidents occurred as the result of an online arrangement through a dating app. o 7 incidents involved family members/acquaintances/friends. o 30 incidents were Estes robberies that did not occur at The Outlets.  Suspects were arrested in 72 robbery reports. 11 of them were transients. *Robbery is now categorized under crimes against property, per NIBRS. 47  COMMERCIAL BURGLARY – Commercial burglaries decreased by 36% from 364 in 2023 to 234 in 2024.
o There were 66 reported storage burglaries, 14 of which the report was generated online. o 168 commercial burglaries occurred at a variety of commercial establishments such as restaurants, retail/jewelry/department stores, gas stations, pharmacies, schools, medical clinics/hospitals, and other commercial buildings.
 27 suspects were arrested for commercial burglary cases. 8 of them were transients.  RESIDENTIAL BURGLARY – Residential burglaries decreased by 27% from 170 in 2023 to 125 in 2024.
o 30 of the 125 residential burglaries backed up to a greenbelt, horse trail, hillside, or freeway access in which the suspects appeared to utilize. The typical method of operation is to enter the second story rear slider or window.
o Residential burglary crews from South America have been targeting cities across Orange County and all of Southern California. Their typical method of operation is to use rental cars to surveil neighborhoods and break into residences that appear unoccupied and often back up to a greenbelt or open land.
o There were 50 garage burglaries.
 13 suspects were arrested for residential burglary cases. 6 of them were transients.  THEFT FROM VEHICLE – Thefts from vehicles decreased by 12% from 504 in 2023 to 443 in 2024.
o Top locations of thefts include: The Outlets and surrounding areas (25), 850/1000/1055/1110/1235 W. Town and Country (28), and 3063/3099 W. Chapman (17).  Suspects were arrested in 8 of the thefts from vehicles. None of them were transients.  STOLEN VEHICLE – Stolen vehicles increased by 1% from 376 in 2023 to 378 in 2024. o Most common vehicles stolen: Chevrolet (97), Ford (40) and Toyotas (36). o The Outlets and surrounding area had 18 stolen vehicles. o The other common theft locations are Gateway Apartments parking structure (10) and Town and Country parking structures (8).
 Suspects were arrested in 34 stolen vehicle reports. 2 of them were transients.  LARCENY – Larcenies decreased by 6% from 1198 in 2023 to 1128 in 2024. o 480 of the 1128 larcenies involved shoplifting.
 243 of the 480 shopliftings occurred at The Outlets.
o 183 of the 1128 larcenies were theft of motor vehicle parts.  99 were stolen plate reports.
 45 were catalytic converter thefts.
 22 were tailgate thefts. Tailgate thefts saw an increase in 2024 all across Orange County, specifically targeting Toyota Tacomas.
 17 involved the theft of other motor vehicle parts (tires, registration tabs, lights, bumpers, and a battery).
 Suspects were arrested in 330 larcenies. 49 of them were transients.

48 49

50 51

TRUST CARE COMMITMENT
@CityofOrangePD
Assisted in Community Outreach Events

VOLUNTEERS
61 Salary Savings
5,669
Hours Worked by Volunteers
$159,596
2023 20242023 2024

ANNUAL REPORT
TRUST. CARE.

COMMITMENT.

I am honored to present the Orange
Police Department’s 2024 Annual
Report. Our department is built on a
foundation of professionalism,
integrity, and a steadfast commitment
to public safety. We recognize that
trust and collaboration with our
community are essential to effective
policing, and we remain dedicated to
strengthening these relationships to
ensure a safer and more united Orange.

C R I M E R E P O R T

CRIME PREVENTION
Security Assessments,Construction Inspections, PlanChecks and Light Surveys 56 NeighborhoodWatchMeetings
695
Residents Participatedin our CommunityAcademies
133

SUPPORT SERVICES
Comprised of Personnel & Training,
Dispatch, and the Community
Engagement Bureau.
11 Sworn OfficersHired in 2024
6 Professional StaffHired in 2024 Hours of AdvancedOfficer Training 40 52
1,071
Traffic
Collision
Investigations
10,070
Motor OfficerCitations Parking Citations
27,721
H.E.A.R.T. & BIKE TEAM
PATROL
95,570
Calls forService
13,871
Reports Arrests
5,7374 min
Average ResponseTime (Emergency)
JOIN OUR TEAM @CityofOrangePD

DISPATCH
The Homeless Engagement, Assistance & Resource Team
partners with outreach specialists, a clinician, and the Bike Team to address transient issues and improve community well-being.

Items CollectedInto Evidence
13,027
CasesInvestigated
6,183
Special Operationsand ComplianceChecks
89 The Investigative Services Division is comprised of
the Records Bureau, Property & Evidence, Forensic
Services, and several detective units including
Property and Economic Crimes, Crimes Against
Persons, Gang Unit, and Special Investigations Unit.

INVESTIGATIONS

RECORDS
107
California Public
Records Act
Requests
13,869
Reports Processed Employees
14 2,670
Reports Releasedto the Public

TRAFFIC
11 D.U.I.

Checkpoints D.U.I.Arrests
537
49,276
911 Calls Received
911 Calls Answered
Within 10 Seconds

99.18%
127,396
Non-Emergency
Calls Processed
201
Sheltered
5,275Contacts 133Mental HealthFollow Ups
53 TRUST ▪ CARE ▪ COMMITMENT

OFFICE OF THE CHIEF OF POLICE
Memorandum
To: Tom Kisela, City Manager

From: Dan Adams, Chief of Police

Date: March 3, 2025

Re: 2024 Homeless and H.E.A.R.T. Report
__________________________________________________________________________________ The Orange Police Department dedicates significant resources to the homeless community with a sergeant who oversees two officers assigned to the Homeless, Engagement, Assistance, & Resource Team (H.E.A.R.T.), three officers assigned to the Bike Team, and two civilians assigned as Homeless Outreach Specialists (H.O.S.). The teams work together on clean-up efforts, respond to large encampments, conduct enforcement, and collaborate on special projects.

H.E.A.R.T. maintains an effective presence in the community by providing field support to homeless individuals. They are routinely called upon by field patrol officers, specialized units, City departments, and community members for short and long-term solutions related to homelessness. Their solutions include connecting the homeless with various types of shelters, rehabilitation, counseling services, family reunifications, and immediate basic needs. H.E.A.R.T will take enforcement action with persistent, repeat violations, and other issues that generally mandate enforcement (i.e. narcotics, vandalism, theft). The Bike Team’s primary focus is enforcement, but they also handle other community and quality of life issues apart from homelessness.

In 2024, there were 4,575 homeless-related calls for service (CFS) citywide, an 18% increase from 2023.

In 2024, the Bike Team, H.O.S. Team and H.E.A.R.T. made a total of 5,275 contacts throughout the City, which included non-homeless specific contacts and repeated contacts with homeless specific individuals. This was a 14% decrease from 2023. There were 742 arrested for various crimes (e.g., warrants, trespassing, drug related activity, assaults, and theft). This is a 44% decrease from 2023. 69 arrests were made for felony offenses (53% decrease from 2023) and 673 arrests were made for misdemeanor offenses (42% decrease from 2023). The decrease in contacts is due to a change in requirements for Trespassing and Illegal Lodging Letters and greater focus on sheltering individuals.

H.E.A.R.T. sheltered 201 homeless individuals in 2024 compared to 165 in 2023, which is a 22% increase. This is primarily a result of the team’s proactive approach but also includes referrals and relationship building. Approximately 76 individuals were sheltered from the City Resource Provider (The Hub OC) at 517 W. Struck Ave. The other 125 individuals were sheltered from areas throughout our City (Hart Park, El Camino Park, Train Depot, Santiago Creek, etc.). 54 2

Other Shelters include Laura’s House, Yale Navigation Center, Olive Crest Host Families, Veteran Affairs, Salvation Army, Be Well Residential program, Fullerton Navigation Center, and Central City Navigation Center.

The team continues to refer homeless individuals willing to accept shelter into the Buena Park Navigation Center, Bridges at Kraemer Shelter, Placentia Navigation Center, and Home Aid Family Care Center. The Orange Police Department remains one of the highest utilizers of these shelters.

Unfortunately, many of the sheltered individuals leave the shelters after a short time for a variety of reasons, including curfew violations, drug related violations and not wanting to follow the shelters’ code of conduct. Additionally, these shelters periodically close for a variety of reasons such as Home Aid Family Care Center closing for several months due to a remodel and new management operating the facility.

H.E.A.R.T. refers individuals into the Salvation Army Program, 1st Step House of Orange County, College Hospital, and the Be Well Center in Orange for substance abuse-detox programs. In 2024, H.E.A.R.T. and H.O.S. were able to assist 6 individuals (64% decrease from 2023) with admission into rehab programs. H.E.A.R.T also works with the Orange County Outreach Team, offering various services such as shelter, detox, and medical to those in need. The Orange County Health Care Agency provides a Mental Health P.E.R.T. Clinician who accompanies H.E.A.R.T. every Monday. The clinician serves as a valuable mental health resource for members of the homeless community and non-homeless residents. The clinician also brings knowledge reference the county’s mental health and homeless related programs. In 2024, H.E.A.R.T. and the Mental Health Clinician conducted 133 mental health follow ups, 41 mental health evaluations, and placed 15 individuals on mental health holds. These numbers remained consistent with numbers from 2023. These individuals were lodged at local hospitals, UCI Medical Center, St. Joseph Hospital, CHOC, Chapman Global, Be Well and the Crisis Stabilization Unit (CSU) in Santa Ana.

0102030405060708090100Buena ParkNavagationCenterBridges atKraemerPlacentiaNavagationCenterOther Shelters HomeAid Reunification935043861201 Individuals Sheltered at these Locations 55 3

H.E.A.R.T. maintains relationships with private and government outreach groups, such as The Beacon of Orange, One Church in Orange, Micah’s Way, Mercy House, P.A.T.H., The Orange County Rescue Mission, Orange County Outreach Team, Orange County Health Care Agency, and the Volunteers of America who specialize in assisting homeless veterans. H.E.A.R.T. assisted them with acquiring food, showers, clothing, hygiene kits, medical attention, government documents, information on detox programs, and mental health services.

H.E.A.R.T. collaborates with The Beacon of Orange, who maintains funds to be used for the homeless Re-Unification Program and other homeless related needs. This fund is called the HEART Fund and is comprised of cash donations given by different churches and organizations associated with One Church in Orange. In 2024, the HEART Fund had not been replenished and due to the lack of funds, only one subject was reunified compared to the 12 individuals in 2023.

The individual who was reunified was a male Marine and Army veteran with 7 combined years of service. H.E.A.R.T. and H.O.S. were introduced to the individual after a call for service in the area of Cambridge St. and Chapman Ave. to help coordinate potential resources. The veteran recently arrived in the City of Orange after falling asleep on a bus leaving Oceanside and he became stranded in Orange County. The veteran previously lived in Oceanside, where he was placed in a transition housing project thanks to coordination by his local VA affiliate. The veteran was interested in returning home to Oceanside to be reconnected to his VA care team in the Oceanside area. The H.O.S. team assisted the veteran and purchased a bus ticket to Oceanside. H.E.A.R.T. transported the individual to the Hub OC so he could eat breakfast and wait for his departure time. The H.O.S. and H.E.A.R.T. teams then provided the veteran with transportation to the ARTIC station in Anaheim and waited with him until his bus arrived to ensure his safety. The veteran thanked both units and successfully boarded the bus back to his care team in Oceanside.

The HUB OC continues to be well known in the community. H.E.A.R.T. and HOS contacted hundreds of individuals from Orange and surrounding Orange County Cities (primarily from Anaheim, Santa Ana, Garden Grove, Fullerton, Buena Park), states (New York, Washington, Texas, and New Mexico) and countries (Mexico and China). H.E.A.R.T. and H.O.S. continue to work with the HUB OC to provide these individuals with the most applicable resources needed for each specific individual.

Numerous individuals continue to loiter outside of the Hub OC location and along the curb. While there are no laws prohibiting loitering, these individuals have been contacted for smoking marijuana, drinking alcohol, public urination, blocking the roadway with their personal belongings, parking illegally and have warrants. In July of 2024, the Hub OC staff changed the facilities operational hours by opening and closing two hours earlier (7:00am – 1:00pm). This change has made a noticeable improvement to the number of individuals who loiter. Additionally, 3-hour vehicle parking and no overnight parking signs were placed along Struck Ave. to prevent loitering concerns. Approximately 37 citations were issued since July 2024.

The Bike Team and H.E.A.R.T. continue to maintain a working relationship with California Highway Patrol (C.H.P.) and Caltrans for state-related properties in and around the City. C.H.P. has supplemented the teams and helped with outreach and law enforcement along freeway ramps, underpasses, and non-state-related properties throughout the City. They also removed abandoned encampments, trash, and graffiti from multiple areas. Multiple arrests were made for trespassing, drugs, drug paraphernalia and warrants. During 2024, the Bike Team, H.E.A.R.T., and H.O.S. 56 4

participated in several multi-organizational outreach and cleanups. These cleanups took place in January, April, May, August, and September. Additionally, the Bike Team, H.E.A.R.T. and C.H.P. assist each other with suspect identification and additional support for safe operations.

The Bike Team, H.E.A.R.T., and C.H.P. continue to enforce trespassing laws along Santiago Creek between E. Chapman Ave. to the SR 22 freeway under pass. Most of the subjects located along the areas of Santiago Creek are trespassers/repeat offenders who abuse illicit narcotics, illegally lodge, conduct vandalism, and are responsible for various thefts throughout the city. The H.O.S. team provided outreach and resources to multiple individuals with opportunities to go to a shelter. Some were receptive to the resources, but the majority were not willing to go to a shelter. The Bike Team and H.E.A.R.T. made approximately 257 arrests for a variety of offensives including trespassing in the area of the Santiago Creek. This was a 32% decrease from 2023. Bike Team personnel attribute the decrease in arrests to their increased focus in the area and deterrent for subjects who frequent the area. See chart below for a breakdown of major arrest locations which shows 226 arrests out of the 257 arrests. The other 31 arrests in the Santiago Creek were made in less significant areas.

In late 2024, a new Orange Municipal Code (OMC) bicycle law was introduced regarding subjects dismantling and being in possession of multiple bicycle frames and parts while inside a City park. The Bike Team regularly uses this section as a tool to contact repeat offenders and investigate other criminal activities.

During 2024, H.E.A.R.T. and H.O.S. participated in the Point-in-Time (PIT) Count, a count of sheltered and unsheltered people experiencing homelessness on a single day in January. This count occurs for unsheltered people experiencing homelessness every other year though the entire county and is completed with outside agencies and volunteers. The 2024 PIT Count showed 214 unsheltered individuals and 155 sheltered individuals in the City of Orange. H.E.A.R.T. believes the 214 unsheltered individuals are inflated due to Orange being a location which draws homeless subjects for a variety of reasons: hospitals, Be Well, the Hub OC, feeling of safety, cleanliness of parks, proximity of the Santiago Creek, and Santa Ana River. H.E.A.R.T. estimates 40 to 60 subjects go to the Hub OC daily and more when additional resources such as medical services are on-site. Overall, California and all the Orange County Service Planning Areas experienced an increase in the number of homeless individuals from the previous PIT Count in 2022 which was 134 unsheltered for the City of Orange. 1053355191420345372320050100150200250Santiago Creek & 22FWYSantiago Creek & E.Chapman AveSantiago Creek & 55FWYSantiago Creek &Cambridge St.Santiago Creek &Main St.Number of Arrests Along the Santiago Creek20242023 57 5

H.E.A.R.T. has remained up to date with changes in trespassing laws regarding Senate Bill 602 which requires a “request for a peace officer’s assistance, made in a notarized writing on a form provided by the law enforcement agency, may be made to cover a limited period of time not to exceed a time period determined by local ordinance or 12 months.” H.E.A.R.T. with the City Attorney’s Office has created an updated Trespassing and Illegal Lodging Enforcement Letter for businesses suffering from habitual trespassers or illegal lodging. Due to the additional requirements for business owners to have a notary to sign the illegal lodging letter, the number of PC 647(e) – Illegal Lodging arrests went from 107 in 2023 to 30 in 2024, a 72% decrease. H.E.A.R.T. continues to update the current trespassing letter database to be incompliance with SB 602 and illegal lodging arrests are expected to rise.

To help address habitual homelessness in the Santiago Creek under Glassell St. and the 22 Freeway, Hart Park was expanded from Glassell St. to the edge of the Orange/Santa Ana border near the 22 Freeway. In June, Community Services placed new signs in the area to assist with any necessary enforcement. The Bike Team had 55 arrests in that specific area related to camping, trespassing, narcotics possession and subjects with arrest warrants. Additionally, Grants Pass v. Johnson overturned the Martin v. City of Boise 9th Circuit which now allows California agencies to conduct more camping enforcement in public locations. H.E.A.R.T. has maintained an outreach approach while enforcing OMC violations for repeat offenders. A total of 67 subjects were arrested in 2024 for violation of OMC camping compared to 1 subject in 2023.

In accordance with the OMC and the California Vehicle Code (CVC), H.E.A.R.T. conducted outreach and enforcement for homeless subjects living in recreational vehicles throughout the city. H.E.A.R.T. received citizen complaints reference these vehicles congregating in the lots and dumping feces and urine along the pavement and grass areas. H.E.A.R.T. continues to offer outreach services, education of city ordinances, and follow-up with enforcement activity. H.E.A.R.T. used various enforcement methods to gain compliance through citations, OMC abandoned vehicle notices, and vehicle removal through CVC tow authorizations.

In the beginning of the year, the Bike Team, H.E.A.R.T., Public Works, and volunteers assisted with monthly clean ups in the Santiago Creek due to the multiple encampments which results in littering, graffiti, illegal dumping and degradation of the area. The Bike Team and H.E.A.R.T. contacted multiple people in the Santiago Creek, which allowed Public Works and other volunteers to clear the area. Additionally, H.E.A.R.T. has established a collaborative relationship with Public Works due to multiple clean-up operations throughout the year. This relationship has assisted both Public Works and H.E.A.R.T. with removing more illegal encampments and abandoned property.

H.E.A.R.T. continues to collaborate with other Orange County Agencies’ Homeless Liaison Officers (HLO) from Anaheim, Tustin, Santa Ana, Garden Grove, Buena Park, Brea, Placentia, Fullerton, Newport Beach, Huntington Beach, Laguna Beach, Irvine and Orange County Sheriff’s Department.

H.E.A.R.T. and H.O.S. have participated in multiple training courses and networking opportunities throughout the year.

In collaboration with its many public and private partners, H.E.A.R.T., Bike Team, and H.O.S. continue to build partnerships and take action regarding any homeless-related activities to reduce homelessness in the City of Orange.
58 Agenda Item
City Council
Item #: 6.2. 3/25/2025 File #: 25-0175
TO: Honorable Mayor and Members of the City Council
FROM: Wayne W. Winthers, Interim City Attorney

1. SUBJECT
First Amendment to Agreement for Employment with City Manager Thomas C. Kisela to revise the termination and severance.

2. SUMMARY
The proposed First Amendment to Agreement for Employment with City Manager, Thomas C. Kisela, provides for an extension to his agreement on a month-to-month basis. The City Manager’s compensation and benefits will not change from the current agreement.

3. RECOMMENDED ACTION
Approve the First Amendment to Agreement for Employment with City Manager Thomas C. Kisela; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 4: Improve Employee Retention and Recruitment
Objective 4.5: Implement Succession Planning Strategies

6. DISCUSSION AND BACKGROUND
The City Council appointed Thomas C. Kisela (Kisela) as City Manager, effective March 14, 2023, for a two-year term with Kisela expecting to retire at the end of said term. Said term is set to expire on March 26, 2025. City Council is currently engaged in a comprehensive recruitment process for a new City Manager. This search is not yet complete and there is no set date for such completion.

The City Council desires to retain Kisela as City Manager until a suitable replacement can be hired.

To accomplish this in the most fiscally responsible way, City and Kisela agree to an extension of the term on a month-to-month basis with no change in compensation. Either the City or Kisela must give thirty (30) days’notice for the agreement to terminate which will occur upon the hiring of a new City Manager.

7. ATTACHMENTS
· First Amendment to Agreement for Employment of City Manager City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
59 Agenda Item
City Council
Item #: 6.2. 3/25/2025 File #: 25-0175
TO: Honorable Mayor and Members of the City Council
FROM: Wayne W. Winthers, Interim City Attorney

1. SUBJECT
First Amendment to Agreement for Employment with City Manager Thomas C. Kisela to revise the termination and severance.

3. RECOMMENDED ACTION
Approve the First Amendment to Agreement for Employment with City Manager Thomas C. Kisela; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 4: Improve Employee Retention and Recruitment
Objective 4.5: Implement Succession Planning Strategies

The City Council desires to retain Kisela as City Manager until a suitable replacement can be hired.

7. ATTACHMENTS
· First Amendment to Agreement for Employment of City Manager City of Orange Printed on 3/20/2025Page 1 of 1
powered by Legistar™
60 61
62 Agenda Item
City Council
Item #: 6.3. 3/25/2025 File #: 25-0124
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Status of the Fiscal Year 2024-2025 budget.

2. SUMMARY
This report provides a mid-year update and year-end estimates of the Fiscal Year 2024-2025 budget.

3. RECOMMENDED ACTION

1. Receive and file report.

3. Authorize the transfer of $176,328 from the unreserved fund balance of the Major Building Improvements Fund (725) to the General Fund (100) unreserved fund balance.

4. FISCAL IMPACT
These are grants/donations received in FY24 and are restricted for a specific purpose. Sufficient funds are available in the unreserved fund balances of the respective funds to support the requested appropriations.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

6. DISCUSSION AND BACKGROUND
General Fund Revenues
The General Fund received $58.5 million, or 39% of budgeted revenues through mid-year FY25, including transfers. Based on current trends and analysis, the total General Fund revenues for FY25 are estimated to be just over $149.2 million, $2.8 million over the revised budget, see table 1 below.

City of Orange Printed on 3/20/2025Page 1 of 6
powered by Legistar™
63 Item #: 6.3. 3/25/2025 File #: 25-0124
Table 1: FY25 General Fund Revenue
Revenue Source FY24 Actuals
(SPLY)
Revised
Budget
Mid-Year
Actuals
Year-End
Estimates
Variance to
Revised
Budget
Property Tax 54,570,052 55,710,900 15,211,342 56,568,754 857,854 Sales Tax 50,610,366 51,617,688 24,203,702 51,116,470 (501,218) Transient Occupancy Tax 6,092,658 5,858,800 2,220,569 6,211,195 352,395 Franchises 2,981,298 3,220,194 325,212 3,100,203 (119,991) License and Permits 7,206,692 7,110,731 3,294,358 6,805,024 (305,707) Fines and Forfeitures 1,747,538 3,040,600 812,459 1,811,215 (1,229,385) Use of Money and
Property
4,742,556 3,075,251 1,728,505 2,789,348 (285,903)
Rev from Other Agencies 3,580,197 2,328,257 1,063,504 2,653,399 325,142 Fees for Service 6,851,807 6,094,431 3,506,975 6,870,980 776,549 Miscellaneous Revenue 1,958,560 1,254,046 1,061,506 1,238,158 (15,888) Interfund Revenues 3,635,631 7,050,201 3,525,100 7,050,201 - Total Operating
Revenue
143,977,356 146,361,099 56,953,234 146,214,947 (146,152) Transfers In 2,629,049 3,000,000 1,500,000 3,000,000 - TOTAL REVENUES 146,606,405 149,361,099 58,453,234 149,214,947 (146,152) Property Tax, currently the City’slargest source of General Fund revenues, is at $15.2 million mid- year, and anticipated to be just under $56.6 million for FY25, 1.5% over the revised budget and 4.8% over same period last year (SPLY). Despite lower volume of home sales due to low inventory and higher interest rates, the annual increase in assessed property values and more property tax increment distributed from the County of Orange for the Successor Agency are projected to contribute to higher property tax receipts compared to SPLY. In addition, property tax in lieu of motor vehicle license fees are expected to be slightly above budget as this revenue is tied to property tax growth.

Sales Tax, the City’ssecond largest source of General Fund revenue, was at $24.2 million at the mid -year point, and is anticipated to be about $501k or 1% under the budget at $51.1 million. Comparing to SPLY Sales Tax will end the year approximately 1% or $506,000 over prior year’sactuals. Based on information from HDL, our sales tax consultant, the City had an overall decline in actual sales through Q3/24 and our major business group Fuel and Services Stations were down 13.7%. This reduction matched the statewide reduction as fuel and oil pricing dropped during the quarter. The City will be receiving updated Sales and Use Tax information for Q4/2024 by early April. This information will be used to update the year-end projections.

Transient Occupancy Tax (TOT) for the City was approximately $2.2 million at midyear and is estimated to be at $6.2 million at year-end or 6% above the revised budget. However, this category will end the year just slightly over SPLY by $9k or 0.1%. While estimated to exceed the revised budget, which is mostly attributable to the City’s Short Term Rental program, this category is City of Orange Printed on 3/20/2025Page 2 of 6
powered by Legistar™
64 Item #: 6.3. 3/25/2025 File #: 25-0124
estimated to end the year at about the same revenue as the prior year actuals.

License and Permits overall are tracking to be about $6.8 million by year end, under the budgeted amount by $305,000 or 4%. This is primarily due to Business License trending slightly lower than anticipated.

Fines and Forfeitures is estimated to end the year $1.2 million under the budgeted amount but will end the year approximately $65,000 less than SPLY. Staff budgeted $1 million in additional parking enforcement revenue, for a total of $2.5 million, in this category based on a full year of anticipated enforcement. Based on current trends, this additional revenue will not be received, and is not included in the year end estimate. Staff will continue to monitor this revenue category, considering the parking enforcement contract and paid parking program in Old Towne.

Fees for Services is currently projected to end the year higher than budget by $775k primarily due to Intergovernmental Transfer Reimbursements for transport fees. These fees are difficult to estimate as they are a reimbursement from another agency. Staff will continue to monitor this line item to year- end for a closer projection for the FY26 budget estimate.

General Fund Expenditures
At mid-year, the total for General Fund expenditure is approximately $71.9 million, or 45% of the budget, including transfers out, see table 2 below.

Table 2: FY24 General Fund Expenditure
Expenditure Category FY24 Actuals
(SPLY)
Revised
Budget
Mid-Year
Actuals
Year-End
Estimates
Variance to
Revised
Budget
Salaries and Benefits 100,385,131 107,731,951 53,152,455 100,072,349 (7,659,602) Contractual Services 15,545,853 16,632,326 6,843,675 15,883,557 (748,769) Materials and Supplies 2,227,988 2,647,920 882,131 1,892,411 (755,509) Miscellaneous Expenses 282,314 684,861 281,159 698,279 13,418 Capital Outlay 135,064 154,207 51,475 117,273 (36,934) Internal Service Costs 23,636,031 29,837,231 9,562,105 28,951,219 (886,012) Debt Service 1,711,460 1,714,700 1,160,800 1,714,700 - Total Operating
Expenditures
143,923,841 159,403,196 71,933,799 149,329,788 (10,073,408) Transfers Out - - - - -
TOTAL EXPENDITURES 143,923,841 159,403,196 71,933,799 149,329,788 (10,073,408) Salaries and benefits account for approximately $53.1 million of mid-year expenditures, about 49% of the revised budget in this category. The year-end estimate is projected to be $100.0 million, about $7.7 million or 7% below the revised budget. This is mainly due to the high vacancy rate experienced by the City and vacancies being held in accordance with budget reductions identified by the City Council Budget Ad Hoc Committee. Expenditures remain relatively flat compared to the SPLY.

Contractual services totals about $6.8 million at the mid-year point and is estimated to be about $15.9 million at year-end, about $750,000 or 4.5% under the revised budget. This is mostly attributed City of Orange Printed on 3/20/2025Page 3 of 6
powered by Legistar™
65 Item #: 6.3. 3/25/2025 File #: 25-0124
$15.9 million at year-end, about $750,000 or 4.5% under the revised budget. This is mostly attributed to reduced or eliminated scopes of work for several large city contracts including janitorial services, landscape and tree maintenance, modifications to “Our Orange” publication, sidewalk cleaning and contracts supporting community special events. These reductions are slightly offset by an increase in support services for planning and building inspections. Compared to SPLY, contractual services only increased by $338,000 which is relatively low considering built-in annual contractual increases.

The materials and supplies category has about $880,000 expended at mid-year. The year-end estimate for this category is approximately $1.9 million, $755,000 or 28% lower than the revised budget of about $2.6 million. This reduction is mostly attributed to reduced programming in library services, community special events, reduced youth programs, and in-house graffiti abatement. These reductions are also shown in comparison to the SPLY, with a $335,000 decrease in this category after the cancellation of the City’s special events and reducing the library budget.

Internal service costs are estimated to be $28.9 million for FY25, a decrease of $890,000 from the revised budgeted amount. Payouts have been backed out of the General Fund and appropriately placed in the Employee Accrued Liability Fund (760) which reduces the internal service costs funded through the General Fund. Internal service costs account for a majority of the variance from SPLY, at a difference of $5.4 million. These increases fund the City’sIT operating and replacement program, vehicle replacements, large retiree payouts, and liability claims.

Related to the City’s internal service fund, staff continues the process to update the City’s cost allocation plan (CAP) and will present the CAP at a future City Council meeting prior to budget adoption. This will impact how centralized costs are assigned to different funds.

Budget Adjustments
The following additional FY25 budget adjustments are recommended:
· Grant and Donation Funding:
o Fire Training and Education: Rancho Santiago Community College District partners with the Orange City Fire Department to provide reimbursement for mandatory training hours performed by staff. The Rancho Santiago Community College District received state funds to administer this training and can redirect a portion of the funds to fire departments that enroll personnel as students at the college. These funds are used for Fire department training expenses and other operation needs. In FY24, $115,531 was received through this program, with a remaining balance of $113,468. The $113,468 appropriation will continue to fund this program in FY25. o Beverage Container Recycling Program: The Public Works Department received an allocation of per-capita grant funds from the California Department of Resources Recycling and Recovery to utilize towards activities related to beverage container recycling. In FY25, $34,522 was received through this program, with a remaining balance of $4,365. The $4,365 appropriation will continue to fund this program through FY25.
o Library Donations: The Library department receives several donations from patrons and non-profit organizations throughout the year for the purchase of additional books and program supplies. In FY24, there were several donations that were not fully spent and can contribute to program expenses in FY25. The total amount of donations City of Orange Printed on 3/20/2025Page 4 of 6
powered by Legistar™
66 Item #: 6.3. 3/25/2025 File #: 25-0124
and can contribute to program expenses in FY25. The total amount of donations received and not spent was $1,600.
· Transfer from Major Building Improvement Fund: In an effort to improve efficiency, the Finance Department closed out funds that were not necessary and could be consolidated.

Expenditures, mostly consistent of facility capital projects, within this fund were moved to the Capital Projects Fund (500) and the fund has not since been leveraged. The remaining fund balance of $176,328 can now be moved back to the General Fund balance to completely clear out this legacy fund.

The total adjustments affecting the General Fund net $61,260 and have been included in the year- end estimates. The total impact on all other funds is $4,365.

Estimated General Fund Balance for FY25
Based on the mid-year activities through December 31, 2024, and current economic trends, the estimated revenue including transfers for FY25 is just under $149.4 million. This is slightly more than the revised budget by approximately $30,175 or less than 1% difference. However, expenditure is trending lower than budget by about $10.1 million or 6%, from $159.4 million budgeted to an estimated $149.3 million. This results in an estimated operating surplus of $61,487.

Table 3: FY25 General Fund Estimated Fund Balance
FY 2024-25
Revised Budget
FY 2024-25 Year-
End Estimate
Variance to
Revised Budget
Estimated Beginning
Undesignated Fund Balance -
7/1/2024
26,910,980 26,910,980 -
Revenues 146,361,099 146,214,947 (146,152)
Transfers-In 3,000,000 3,176,328 176,328
Total Revenues 149,361,099 149,391,275 30,175
Expenditures (159,403,196) (148,578,594) (10,073,409)
Transfers Out - - -
Total Expenditures (159,403,196) (149,329,788) (10,073,409) Operating Surplus/(Deficit) (10,042,097) 61,487 10,103,584 Estimated Ending Fund Balance
- 6/30/2025
16,868,883 26,972,467 10,103,584
Reserved - Catastrophic 26,460,931 24,788,745 (1,672,186) Estimated Undesignated Fund
Balance - 6/30/2025
(9,592,047) 2,183,722 11,775,770
It is important to note that without the one-time transfers from the Capital Projects Fund and the Major Building Improvement Fund, the year-end estimated fund balance would be ($992,606). Staff will continue to monitor activities in the General Fund and provide an update to the year-end City of Orange Printed on 3/20/2025Page 5 of 6
powered by Legistar™
67 Item #: 6.3. 3/25/2025 File #: 25-0124
estimates and fund balance if there are material variances.

7. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 6 of 6
powered by Legistar™
68 Agenda Item
City Council
Item #: 6.3. 3/25/2025 File #: 25-0124
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Status of the Fiscal Year 2024-2025 budget.

2. SUMMARY
This report provides a mid-year update and year-end estimates of the Fiscal Year 2024-2025 budget.

3. RECOMMENDED ACTION

1. Receive and file report.

3. Authorize the transfer of $176,328 from the unreserved fund balance of the Major Building Improvements Fund (725) to the General Fund (100) unreserved fund balance.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

City of Orange Printed on 3/20/2025Page 1 of 6
powered by Legistar™
69 Item #: 6.3. 3/25/2025 File #: 25-0124
Table 1: FY25 General Fund Revenue
Revenue Source FY24 Actuals
(SPLY)
Revised
Budget
Mid-Year
Actuals
Year-End
Estimates
Variance to
Revised
Budget
Property Tax 54,570,052 55,710,900 15,211,342 56,568,754 857,854 Sales Tax 50,610,366 51,617,688 24,203,702 51,116,470 (501,218) Transient Occupancy Tax 6,092,658 5,858,800 2,220,569 6,211,195 352,395 Franchises 2,981,298 3,220,194 325,212 3,100,203 (119,991) License and Permits 7,206,692 7,110,731 3,294,358 6,805,024 (305,707) Fines and Forfeitures 1,747,538 3,040,600 812,459 1,811,215 (1,229,385) Use of Money and
Property
4,742,556 3,075,251 1,728,505 2,789,348 (285,903)
Rev from Other Agencies 3,580,197 2,328,257 1,063,504 2,653,399 325,142 Fees for Service 6,851,807 6,094,431 3,506,975 6,870,980 776,549 Miscellaneous Revenue 1,958,560 1,254,046 1,061,506 1,238,158 (15,888) Interfund Revenues 3,635,631 7,050,201 3,525,100 7,050,201 - Total Operating
Revenue
143,977,356 146,361,099 56,953,234 146,214,947 (146,152) Transfers In 2,629,049 3,000,000 1,500,000 3,000,000 - TOTAL REVENUES 146,606,405 149,361,099 58,453,234 149,214,947 (146,152) Property Tax, currently the City’slargest source of General Fund revenues, is at $15.2 million mid- year, and anticipated to be just under $56.6 million for FY25, 1.5% over the revised budget and 4.8% over same period last year (SPLY). Despite lower volume of home sales due to low inventory and higher interest rates, the annual increase in assessed property values and more property tax increment distributed from the County of Orange for the Successor Agency are projected to contribute to higher property tax receipts compared to SPLY. In addition, property tax in lieu of motor vehicle license fees are expected to be slightly above budget as this revenue is tied to property tax growth.

Transient Occupancy Tax (TOT) for the City was approximately $2.2 million at midyear and is estimated to be at $6.2 million at year-end or 6% above the revised budget. However, this category will end the year just slightly over SPLY by $9k or 0.1%. While estimated to exceed the revised budget, which is mostly attributable to the City’s Short Term Rental program, this category is City of Orange Printed on 3/20/2025Page 2 of 6
powered by Legistar™
70 Item #: 6.3. 3/25/2025 File #: 25-0124
estimated to end the year at about the same revenue as the prior year actuals.

General Fund Expenditures
At mid-year, the total for General Fund expenditure is approximately $71.9 million, or 45% of the budget, including transfers out, see table 2 below.

Contractual services totals about $6.8 million at the mid-year point and is estimated to be about $15.9 million at year-end, about $750,000 or 4.5% under the revised budget. This is mostly attributed City of Orange Printed on 3/20/2025Page 3 of 6
powered by Legistar™
71 Item #: 6.3. 3/25/2025 File #: 25-0124
$15.9 million at year-end, about $750,000 or 4.5% under the revised budget. This is mostly attributed to reduced or eliminated scopes of work for several large city contracts including janitorial services, landscape and tree maintenance, modifications to “Our Orange” publication, sidewalk cleaning and contracts supporting community special events. These reductions are slightly offset by an increase in support services for planning and building inspections. Compared to SPLY, contractual services only increased by $338,000 which is relatively low considering built-in annual contractual increases.

Budget Adjustments
The following additional FY25 budget adjustments are recommended:
· Grant and Donation Funding:
o Fire Training and Education: Rancho Santiago Community College District partners with the Orange City Fire Department to provide reimbursement for mandatory training hours performed by staff. The Rancho Santiago Community College District received state funds to administer this training and can redirect a portion of the funds to fire departments that enroll personnel as students at the college. These funds are used for Fire department training expenses and other operation needs. In FY24, $115,531 was received through this program, with a remaining balance of $113,468. The $113,468 appropriation will continue to fund this program in FY25. o Beverage Container Recycling Program: The Public Works Department received an allocation of per-capita grant funds from the California Department of Resources Recycling and Recovery to utilize towards activities related to beverage container recycling. In FY25, $34,522 was received through this program, with a remaining balance of $4,365. The $4,365 appropriation will continue to fund this program through FY25.
o Library Donations: The Library department receives several donations from patrons and non-profit organizations throughout the year for the purchase of additional books and program supplies. In FY24, there were several donations that were not fully spent and can contribute to program expenses in FY25. The total amount of donations City of Orange Printed on 3/20/2025Page 4 of 6
powered by Legistar™
72 Item #: 6.3. 3/25/2025 File #: 25-0124
and can contribute to program expenses in FY25. The total amount of donations received and not spent was $1,600.
· Transfer from Major Building Improvement Fund: In an effort to improve efficiency, the Finance Department closed out funds that were not necessary and could be consolidated.

The total adjustments affecting the General Fund net $61,260 and have been included in the year- end estimates. The total impact on all other funds is $4,365.

Table 3: FY25 General Fund Estimated Fund Balance
FY 2024-25
Revised Budget
FY 2024-25 Year-
End Estimate
Variance to
Revised Budget
Estimated Beginning
Undesignated Fund Balance -
7/1/2024
26,910,980 26,910,980 -
Revenues 146,361,099 146,214,947 (146,152)
Transfers-In 3,000,000 3,176,328 176,328
Total Revenues 149,361,099 149,391,275 30,175
Expenditures (159,403,196) (148,578,594) (10,073,409)
Transfers Out - - -
Total Expenditures (159,403,196) (149,329,788) (10,073,409) Operating Surplus/(Deficit) (10,042,097) 61,487 10,103,584 Estimated Ending Fund Balance
- 6/30/2025
16,868,883 26,972,467 10,103,584
Reserved - Catastrophic 26,460,931 24,788,745 (1,672,186) Estimated Undesignated Fund
Balance - 6/30/2025
(9,592,047) 2,183,722 11,775,770
It is important to note that without the one-time transfers from the Capital Projects Fund and the Major Building Improvement Fund, the year-end estimated fund balance would be ($992,606). Staff will continue to monitor activities in the General Fund and provide an update to the year-end City of Orange Printed on 3/20/2025Page 5 of 6
powered by Legistar™
73 Item #: 6.3. 3/25/2025 File #: 25-0124
estimates and fund balance if there are material variances.

7. ATTACHMENTS
· None
City of Orange Printed on 3/20/2025Page 6 of 6
powered by Legistar™
74 Agenda Item
City Council
Item #: 7.1. 3/25/2025 File #: 25-0121
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
First Budget Study Session for the Fiscal Year 2025-26 General Fund Budget.

2. SUMMARY
This budget study session is intended to provide an analysis and assumptions of the proposed budget for the General Fund revenue and expenditure for Fiscal Year 2025-26.

3. RECOMMENDED ACTION
Provide direction to staff to prepare the Fiscal Year 2025-26 Preliminary General Fund Budget.

4. FISCAL IMPACT
Fiscal impact will be determined with final budget adoption.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

6. DISCUSSION AND BACKGROUND
Fiscal Year 2025-26 (FY 26) continues to be a challenging year to present a structurally balanced budget for the General Fund. The two largest revenue sources, Property Tax and Sales Tax, for the City are projected to remain flat in FY 26. Inflation is expected to continue to increase, impacting the cost of the City’scontracts and material purchases. The City, once again, will need to implement several budget balancing measures totaling $13 million, to balance the budget. The following measures are included in the proposed FY 26 budget, and are intended to limit the service impacts to the residents and community:
· leveraging one-time revenues,
· temporarily freezing and partially funding vacant positions, · reducing funding for special events,
· deferring replacements and repairs,
· partially funding overtime,
City of Orange Printed on 3/20/2025Page 1 of 6
powered by Legistar™
75 Item #: 7.1. 3/25/2025 File #: 25-0121
· partially funding the City’s Accrued Liability contributions, · deferring contributions to the General Liability Fund and Workers’ Compensation Fund, and · use the estimated undesignated fund balance from FY 25.

Below are the details of the FY 26 General Fund proposed budget.

General Fund Revenues for FY 26
Based on current trends and analysis, the General Fund revenues are projected to remain flat for FY 26 at approximately $149.4 million, a $19,000 increase from the ending estimated revenue for Fiscal Year 2024-25 (FY 25).

Table 1 (below) is a summary of the General Fund revenues by source type, comparing the changes from the FY 24 actuals, the FY 25 year-end estimates, and the FY 26 proposed budget:

Table 1: FY 26 Proposed General Fund Revenue
Revenue Source FY 24 Actuals FY 25 Year-
End
Estimates
FY 26
Proposed
FY 26
Variance from
Year-End
Estimate
Property Tax 54,570,052 56,568,754 58,213,213 1,644,459 Sales Tax 50,610,366 51,116,470 51,632,216 515,746
Transient Occupancy
Tax
6,092,658 6,211,195 6,315,000 103,805
Franchises 2,981,298 3,100,203 3,316,369 216,166
Licenses and Permits 7,206,692 6,805,024 6,930,106 125,082 Fines and Forfeitures 1,747,538 1,811,215 2,121,276 310,061 Use of Money and
Property
4,742,556 2,789,348 2,814,157 24,809
Revenue from Other
Agencies
3,580,197 2,653,399 1,350,800 (1,302,599)
Fees for Service 6,851,807 6,870,980 5,994,059 (876,921) Miscellaneous Revenue 1,958,560 1,238,158 215,366 (1,022,792) Interfund Revenues 3,635,631 7,050,201 7,000,000 (50,201) Total Operating
Revenues
143,977,356 146,214,947 145,902,562 (312,385)
Transfers In 2,629,049 3,176,328 3,508,000 331,672
TOTAL REVENUES 146,606,405 149,391,275 149,410,562 19,287 Provided below are some key assumptions used for the FY 26 General Fund revenues:
· Property Tax: This is the City’slargest source of revenue, and is projected to be $58.2 million in FY 26, an increase of $1.6 million or 2.9% over FY 25 year-end estimates. Based on information from the City’sproperty tax consultant, staff are projecting modest growth for FY

26. Despite the lower volume of home sales due to low inventory and higher interest rates, the City of Orange Printed on 3/20/2025Page 2 of 6
powered by Legistar™
76 Item #: 7.1. 3/25/2025 File #: 25-0121

26. Despite the lower volume of home sales due to low inventory and higher interest rates, the annual increase in assessed property values and property tax in lieu of motor vehicle license fees are expected to be slightly above budget as this revenue is tied to property tax growth. · Sales Tax: The FY 26 revenue is projected to remain flat at $51.6 million, reflecting a $515,000 or 1% increase over the FY 25 estimate. The City’ssales tax, its second-largest General Fund revenue source, experienced an overall decline in actual sales for the quarter ending September 30, 2024. This decrease was driven by a 13.7% drop in the City’smajor business group, Fuel and Service Stations, mirroring the statewide trend as fuel and oil prices fell during the quarter. Updated sales and use tax data for the quarter ending December 31, 2024, is expected by early April. If necessary, this information will be used to revise the FY 26 projection for the Preliminary Budget presented in May. · Transient Occupancy Tax (TOT): The projected TOT revenue for FY 26 is $6.3 million, reflecting a slight increase of $104,000 or 1.7% compared to the FY 25 estimate. Since the pandemic, consumers have been shifting their spending to experiences, travel, and leisure.

While the U.S. Travel Association is reporting a positive year-over-year growth, they caution that some travel indicators are showing decline, underscoring this category’ssusceptibility to economic conditions.
· Revenue from Other Agencies: FY 26 revenue in this category is projected at $1.4 million, a $1.3 million or 49% decrease from FY 25 year-end estimate. This category is primarily comprised of revenue received from other government agencies, as well as one-time grants from sources such as the California Office of Traffic Safety, California Highway Patrol, and California State Library.
· Fees for Services: Staff is projecting a decrease of $877,000 or 12.8%, compared to FY 25 estimate, for a total of $6.0 million in FY 26. The decrease is primarily due to a decrease in the Intergovernmental Transfer (IGT) reimbursement for medical transport fees. The City received $1.0 million from IGT fees in FY 25, which accounted for reimbursement of two fiscal years.

Therefore, the FY 26 projection is reduced by $500,000, in line with the historical average of reimbursement received from IGT.
· Miscellaneous Revenue: Miscellaneous revenue is projected to decrease by $1.0 million or

82.6%, from an estimated $1.2 million in FY 25 to a projected $215,366 in FY 26. This category includes one-time expense reimbursements, donations, and other miscellaneous revenues. One-time reimbursements and donations are difficult to project and, therefore, has been excluded in the proposed budget.

Proposed General Fund Expenditure for FY 26
The proposed FY 26 General Fund expenditure amounts to approximately $150.6 million. This reflects a $1.3 million or 1% increase in expenditure over the FY 25 year-end estimate.

City of Orange Printed on 3/20/2025Page 3 of 6
powered by Legistar™
77 Item #: 7.1. 3/25/2025 File #: 25-0121
Table 2: FY 26 Proposed General Fund Expenditure
Expenditure Category FY 24
Actuals
FY 25 YE
Estimates
FY 26
Proposed
FY 26
Variance
from YE
Estimate
Salaries and Benefits 100,385,131 100,072,349 104,851,445 4,779,096 Contractual Services 15,545,853 15,883,557 15,373,375 (510,182) Materials and Supplies 2,227,988 1,892,411 2,285,078 392,667 Miscellaneous Expenses 282,314 698,279 312,000 (386,279) Capital Outlay 135,064 117,273 34,000 (83,273)
Internal Service Costs 23,636,031 28,951,219 26,051,219 (2,900,000) Debt Service 1,711,460 1,714,700 1,715,400 700
Total Operating
Expenditures
143,923,841 149,329,788 150,622,517 1,292,729
Transfers Out - - - -
TOTAL EXPENDITURES 143,923,841 149,329,788 150,622,517 1,292,729 Provided below are the budget assumptions impacting the FY 26 General Fund expenditures:
· Salaries & Benefits: The FY 26 proposed budget for salaries and benefits is $104.8 million, an increase of about $4.8 million or 5% above the FY 25 year-end estimate and $4.5 million compared to FY 24. The increase is attributed to the following factors:
o Negotiated Salary Increase for Safety: The current salaries and benefits budget includes a 2-3% increase for safety employees, varying by bargaining group. This accounted for over $600,000 or 6% of the overall increase. o Increase in Contributions to Accrued Liability, Workers Compensation, and Unfunded Liability: The rates for these contributions have increased significantly, with most of the increase in unfunded liability. These costs contribute to an increase of $7 million and accounts for 74% of the proposed increase to salaries and benefits for FY

26. The City has historically underfunded its Accrued Liability and Worker’s Compensation programs significantly. Additionally, FY 26 is the second year that the City received an unfunded liability invoice from CalPERS. The FY 25 payment was $3 million, and the projected payment for FY 26 is about $5.1 million. Continuing to underfund this program will lead to compounding payments in future years. Due to budget constraints, the proposed budget will continue to underfund its unfunded liability contributions by 40%, resulting in a budget reduction of approximately $2.1 million. o Overtime: Overtime budget is determined by the department’sprojected need annually.

Similar to the item above, the City has historically underfunded this category. The FY 25 overtime budget in the General Fund is $5.2 million and the year-end estimate is almost $8.2 million, a shortfall of about $3 million. Staff is projecting $6.5 million for overtime next fiscal year. More than 70% or $4.6 million of overtime is in the Fire Department and about 25% or $1.6 million is in the Police Department. Again, due to budget constraints, the proposed budget will continue to underfund overtime by 40%, leading to a budget reduction of almost $2.6 million.
o Vacant Positions: During FY 25, there were more than 70 vacant positions, including City of Orange Printed on 3/20/2025Page 4 of 6
powered by Legistar™
78 Item #: 7.1. 3/25/2025 File #: 25-0121
o Vacant Positions: During FY 25, there were more than 70 vacant positions, including vacancies held due to budget constraints. These vacancies result from resignations, retirements, and/or separations that cannot be predicted, which partially contribute to the difference in FY 25 year-end estimates to FY 26 proposed budget.

While these factors have contributed to a proposed increase in salaries and benefits to the City, there have been several cost-reduction measures incorporated in the proposed budget within the salaries and benefits category:
o Part-Time Staff Reduction: Library and Community Services part-time employees have been budgeted at 50% funded due to the cuts in programming within both departments, resulting in a $1.1 million reduction. These departments are maintaining a minimal level of staffing to cover the remaining programs such as the revised aquatics program and coverage for the reduced hours at the Library. o Full-Time Position Vacancies: Holding positions vacant and partially funding vacancies will amount to about a $4.3 million reduction from the proposed budget.

In summary, the total increase in salaries and benefits of $14.9 million is offset by the cost- reduction of $10.1 million for a net increase of $4.8 million or 5% in FY 26. · Contractual Services: FY 26 contractual services included two new contracts, crossing guards and parking enforcement, which were supplemented by one-time funding in FY 25. The reduction in special event contracts, one-time services, and other maintenance contracts attributed to the overall reduction of $510,000 or 3% in this category.

Materials and Supplies: The proposed budget for this category has an increase of over $390,000 or 21% when compared to the FY 25 year-end estimate. This accounts for the reinstatement of the Library department budget for books amounting to $100,000, an increase of $80,000 to Police and Fire uniform costs, and the rising cost due to inflation in materials and supplies.
· Internal Service Costs/Allocations: While the Cost Allocation Plan study is being conducted by the City’sconsultant, staff has made minor adjustments to the General Fund contribution for internal services based on the current available fund balance in the Internal Service Funds.

These proposed adjustments provide a cost reduction of $2.9 million in FY 26. The Cost Allocation Plan will be brought to the City Council for review in April. The approved changes will then be incorporated in the Preliminary Budget presentation scheduled for May.

Overall, the FY 26 operating budget increased by $1.3 million or 1% compared to FY 25 and increased by $6.7 million or 5% compared to FY 24.

Proposed General Fund Balance for FY 26
The proposed FY 26 General Fund budget includes a total revenue of $149.4 million, including transfers and expenditures totaling $150.6 million, including budget balancing measures, resulting in an operating deficit of approximately $1.2 million. The projected ending fund balance at June 30, 2026 is almost $25.8 million, a decrease of just under $1.2 million from FY 25. Accounting for the catastrophic reserve of 16.6% or $25.0 million, the General Fund is projected to have an City of Orange Printed on 3/20/2025Page 5 of 6
powered by Legistar™
79 Item #: 7.1. 3/25/2025 File #: 25-0121
catastrophic reserve of 16.6% or $25.0 million, the General Fund is projected to have an undesignated fund balance of just over $790,000. Table 3 highlights the Proposed General Fund, fund balance, for FY 26:

Table 3: Proposed Fund Balance for the General Fund
FY 2024-25 Year-
End Estimate
FY 26 Proposed Variance to YE
Estimate
Estimated Beginning Fund
Balance - 7/1/2025
26,910,980 26,972,467 61,487
Revenues 146,214,947 145,902,562 (312,385)
Transfers-In 3,176,328 3,508,000 331,672
Total Revenues 149,391,275 149,410,562 19,287
Expenditures (149,329,788) (150,593,824) 1,264,036
Transfers Out - - -
Total Expenditures (149,329,788) (150,593,824) 1,264,036 Operating Surplus/
(Deficit)
61,487 (1,183,262) (1,244,749)
Estimated Ending Fund
Balance - 6/30/2026
26,972,467 25,789,205 (1,183,262)
Reserved - Catastrophic 24,788,745 24,998,575 209,830
Estimated Undesignated
Fund Balance - 6/30/2026
2,183,722 790,631 (1,393,092)
It is important to note that without the one-time transfers of $3.5 million, budget reduction measures of $13.0 million, and using the estimated undesignated fund balance from FY 25, the deficit for FY 26 proposed General Fund budget would have been $18.7 million. These cost reduction measures to balance the budget today will continue to have compounding effects in future years if not addressed.

The next study session is tentatively planned for April 22nd and will focus on the City’s Capital Improvement Program. Staff will incorporate the City Council’sdirections and feedback received from both study sessions in the FY 26 Preliminary Budget for review during a regular City Council meeting in May.

7. ATTACHMENTS
· First Budget Study Session
City of Orange Printed on 3/20/2025Page 6 of 6
powered by Legistar™
80 Agenda Item
City Council
Item #: 7.1. 3/25/2025 File #: 25-0121
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
First Budget Study Session for the Fiscal Year 2025-26 General Fund Budget.

2. SUMMARY
This budget study session is intended to provide an analysis and assumptions of the proposed budget for the General Fund revenue and expenditure for Fiscal Year 2025-26.

3. RECOMMENDED ACTION
Provide direction to staff to prepare the Fiscal Year 2025-26 Preliminary Budget.

4. FISCAL IMPACT
Fiscal impact will be determined with final budget adoption.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

6. DISCUSSION AND BACKGROUND
Fiscal Year 2025-26 (FY 26) continues to be a challenging year to present a structurally balanced budget for the General Fund. The two largest revenue sources, Property Tax and Sales Tax, for the City are projected to remain flat in FY 26. Inflation is expected to continue to increase, impacting the cost of the City’scontracts and material purchases. The City, once again, will need to implement several budget balancing measures totaling $13 million, to balance the budget. The following measures are included in the proposed FY 26 budget, and are intended to limit the service impacts to the residents and community:
· leveraging one-time revenues,
· temporarily freezing and partially funding vacant positions, · reducing funding for special events,
· deferring replacements and repairs,
· partially funding overtime,
City of Orange Printed on 3/20/2025Page 1 of 6
powered by Legistar™
81 Item #: 7.1. 3/25/2025 File #: 25-0121
· partially funding the City’s Accrued Liability contributions, · deferring contributions to the General Liability Fund and Workers’ Compensation Fund, and · use the estimated undesignated fund balance from FY 25.

Below are the details of the FY 26 General Fund proposed budget.

Table 1 (below) is a summary of the General Fund revenues by source type, comparing the changes from the FY 24 actuals, the FY 25 year-end estimates, and the FY 26 proposed budget:

26. Despite the lower volume of home sales due to low inventory and higher interest rates, the City of Orange Printed on 3/20/2025Page 2 of 6
powered by Legistar™
82 Item #: 7.1. 3/25/2025 File #: 25-0121

City of Orange Printed on 3/20/2025Page 3 of 6
powered by Legistar™
83 Item #: 7.1. 3/25/2025 File #: 25-0121
Table 2: FY 26 Proposed General Fund Expenditure
Expenditure Category FY 24
Actuals
FY 25 YE
Estimates
FY 26
Proposed
FY 26
Variance
from YE
Estimate
Salaries and Benefits 100,385,131 100,072,349 104,851,445 4,779,096 Contractual Services 15,545,853 15,883,557 15,373,375 (510,182) Materials and Supplies 2,227,988 1,892,411 2,285,078 392,667 Miscellaneous Expenses 282,314 698,279 312,000 (386,279) Capital Outlay 135,064 117,273 34,000 (83,273)
Internal Service Costs 23,636,031 28,951,219 26,051,219 (2,900,000) Debt Service 1,711,460 1,714,700 1,715,400 700
Total Operating
Expenditures
143,923,841 149,329,788 150,622,517 1,292,729
Transfers Out - - - -
TOTAL EXPENDITURES 143,923,841 149,329,788 150,622,517 1,292,729 Provided below are the budget assumptions impacting the FY 26 General Fund expenditures:
· Salaries & Benefits: The FY 26 proposed budget for salaries and benefits is $104.8 million, an increase of about $4.8 million or 5% above the FY 25 year-end estimate and $4.5 million compared to FY 24. The increase is attributed to the following factors:
o Negotiated Salary Increase for Safety: The current salaries and benefits budget includes a 2-3% increase for safety employees, varying by bargaining group. This accounted for over $600,000 or 6% of the overall increase. o Increase in Contributions to Accrued Liability, Workers Compensation, and Unfunded Liability: The rates for these contributions have increased significantly, with most of the increase in unfunded liability. These costs contribute to an increase of $7 million and accounts for 74% of the proposed increase to salaries and benefits for FY

Similar to the item above, the City has historically underfunded this category. The FY 25 overtime budget in the General Fund is $5.2 million and the year-end estimate is almost $8.2 million, a shortfall of about $3 million. Staff is projecting $6.5 million for overtime next fiscal year. More than 70% or $4.6 million of overtime is in the Fire Department and about 25% or $1.6 million is in the Police Department. Again, due to budget constraints, the proposed budget will continue to underfund overtime by 40%, leading to a budget reduction of almost $2.6 million.
o Vacant Positions: During FY 25, there were more than 70 vacant positions, including City of Orange Printed on 3/20/2025Page 4 of 6
powered by Legistar™
84 Item #: 7.1. 3/25/2025 File #: 25-0121
o Vacant Positions: During FY 25, there were more than 70 vacant positions, including vacancies held due to budget constraints. These vacancies result from resignations, retirements, and/or separations that cannot be predicted, which partially contribute to the difference in FY 25 year-end estimates to FY 26 proposed budget.

Overall, the FY 26 operating budget increased by $1.3 million or 1% compared to FY 25 and increased by $6.7 million or 5% compared to FY 24.

Proposed General Fund Balance for FY 26
The proposed FY 26 General Fund budget includes a total revenue of $149.4 million, including transfers and expenditures totaling $150.6 million, including budget balancing measures, resulting in an operating deficit of approximately $1.2 million. The projected ending fund balance at June 30, 2026 is almost $25.8 million, a decrease of just under $1.2 million from FY 25. Accounting for the catastrophic reserve of 16.6% or $25.0 million, the General Fund is projected to have an City of Orange Printed on 3/20/2025Page 5 of 6
powered by Legistar™
85 Item #: 7.1. 3/25/2025 File #: 25-0121
catastrophic reserve of 16.6% or $25.0 million, the General Fund is projected to have an undesignated fund balance of just over $790,000. Table 3 highlights the Proposed General Fund, fund balance, for FY 26:

7. ATTACHMENTS
· First Budget Study Session
City of Orange Printed on 3/20/2025Page 6 of 6
powered by Legistar™
86 ATTACHMENT A
1 Proposed Budget Reductions
Proposed Budget Reduction Cost Reduction
Eliminate contribution to IT Operating
Fund (780)
($2,000,000)
Eliminate contribution to Computer
Replacement/IT Capital Fund (790)
(900,000)
Budget Overtime at 60% (2,592,201)
Budget Contribution to Unfunded Accrued
Liability (UAL) at 60%
(2,056,402)
Part-Time Positions Funded at 50% (1,098,850)
Vacancies – Frozen and Partially Funded (4,346,295)
Total Proposed Budget Reduction ($12,993,748)

Departmental Personnel Requests (included in the FY 26 proposed budget) Department Description General Fund
Cost
Community Services Reclassify the Administrative Analyst I to Administrative Analyst II
$20,000
Fire Department Reclassify the Office Assistant to
Administrative Assistant
18,000
Fire Department Reclassify the Administrative Analyst I to Administrative Analyst II
20,000
Net Cost/(Savings) to General Fund: $58,000

Overtime – by department
Department FY 26 Budget
Request
FY 26 Proposed
Budget
(with reduction)
Fire $4,667,871 $2,800,723
Police 1,633,132 979,879
Public Works 149,500 89,700
Community Development 30,000 18,000
Total Cost to General Fund: $6,480,503 $3,888,302

Not currently included in the proposed budget are:

Department Description General Fund
Cost
Fire Department Reclassify one Plan Examiner to
Senior Plan Examiner
$20,000
Fire Department Addition of a Training Battalion
Chief
$326,000
Fire Department Addition of a Permit Technician $100,000 87 ATTACHMENT A
2 Information Technology Addition of an Administrative
Analyst I
$120,000
Information Technology Addition of a Network/Security
Analyst
$170,000
Information Technology Addition of a Systems Analyst $150,000 Total Cost to General Fund: $886,000

Orange City CouncilMarch 25, 2025

Orange City Council
March 25, 2025