CITY COUNCIL
Dennis Hoffman, Mayor
Jeffrey A. Tolley, Vice-Mayor
Bruce T. Roundy
William "Billy" Irvin
Chris Dobbs
CITY OFFICIALS
Jennifer Schmitke
City Clerk
Leticia Espinosa
City Treasurer
C Y OA
INCORPORATED 1909
815 Fourth Street
ORLAND, CALIFORNIA 95963
Telephone (530) 865-1600
Fax (530) 865-1632 CITY MANAGER
Peter R. Carr
AND
AGENDA
REGULAR MEETING, ORLAND CITY COUNCIL
Tuesday, November 1, 2022 at 6:30 PM
This meeting will be conducted pursuant to the provisions AB361 which suspends certain requirements of the Ralph M. Brown Act.
This City Council meeting will be held at Carnegie Center, 912 Third Street, Orland and teleconferenced using Zoom technology. Councilmembers and City staff may choose to be in person or remote.
The public is encouraged to participate in the meeting via Zoom or can participate at Carnegie Center.
ZOOM Link: www.zoom.us WEBINAR ID# 869 8051 6236
ZOOM Telephone - Please call: 1 (669) 900-9128
1. CALL TO ORDER — 6:30 P.M.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. ORAL AND WRITTEN COMMUNICATIONS
Public Comments:
Members of the public wishing to address the Council on any item(s) not on the agenda may do so at this time when recognized by the Mayor. However, no formal action or discussion will be taken unless placed on a future agenda. Public is advised to limit discussion to one presentation per individual. While not required, please state your name and place of residence for the record. Please direct your comments to the Mayor or Vice Mayor. (Oral communications will be limited to three minutes).
5. CONSENT CALENDAR
A. Warrant List (payable obligations) (p.1)
B. Approve City Council Minutes for October 18, 2022 (p.6) C. AB361 Compliance (p.10)
D. Vacation of a Portion of Central Street (Agreement and Resolution, No staff report) (p.12) E. Receive and file Recreation Commission Minutes from June 22, 2022 (p.17) Orland City Council
November 1, 2022
6. ADMINISTRATIVE BUSINESS
A. Pension Funding Update & Public Safety Center Funding Options (Discussion/Direction) —Jeffery Small, Capitol PFG (p.19)
B. Treasurer and Investment Committee Report (Discussion/Action) — Leticia Espinosa, City Treasurer (p.26)
C. Water & Sewer Rates (Discussion/Action) — Paul Rabo, City Engineer (p.29) D. Verbal Update on Drought Conditions and Water Supply Project (Discussion) — Pete Carr, City Manager
7. CITY COUNCIL COMMUNICATIONS AND REPORTS
8. ADJOURN
CERTIFICATION: Pursuant to Government Code Section 54954.2(a), the agenda for this meeting was properly posted on October 28, 2022.
A complete agenda packet is available for public inspection during normal business hours at City Hall, 815 Fourth Street, in Orland or on the City's website at www.cityoforland.comwhere meeting minutes and audio recordings are also available.
In compliance with the Americans with Disabilities Act, the City of Orland will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk's Office 865-1610 to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
CITY COUNCIL
CI H o
CITY MANAGER
Peter R. Carr
Yo
INCORPORATED 1909
815 Fourth Street
ORLAND, CALIFORNIA 95963
Telephone (530) 865-1600
Fax (530) 865-1632
Dennis Hoffman, Mayor
Jeffrey A. Tolley, Vice-Mayor
Bruce T. Roundy
William "Billy" Irvin
Chris Dobbs
CITY OFFICIALS
Jennifer Schmitke
City Clerk
Leticia Espinosa
City Treasurer
Item 5.A
WARRANT LIST
November 1, 2022
Warrant 10/27/22 $ 222,469.51
Payroll Compensation 10/20/22 $ 119,932.68
$ 342,402.19
APPROVED BY
Dennis Hoffman, Mayor
Jeffrey A. Tolley, Vice-Mayor
Bruce T. Roundy, Councilmember
William "Billy" Irvin, Councilmember
Chris Dobbs, Councilmember
001
REPORT.: Oct 27 22 Thursday
RUN • Oct 27 22 Time: 15:01
Run By.: Leticia Espinosa
Check Check Vendor
Number Date Number Name
CITY OF ORLAND
Cash Disbursement Detail Report
Check Listing for 10-22 thru 10-22 Bank Account.: 1001
Net
Amount Invoice # Description
PAGE: 001
ID #: PY-DP
CTL.: ORL
056134 10/26/22 ORLO8 ORLAND UNIT WATER USERS
056135 10/27/22 CAR02 CARDMEMBER SERVICE
056136 10/26/22 CAR02 CARDMEMBER SERVICE
056137 10/27/22 4LE00 4 LEAF INC.
056138 10/27/22 ABDOO ADVANCED DOCUMENT
056139 10/27/22 AIROO AIR RITE HEATING & AIR
056140 10/27/22 ALT02 Alternative Energy System
200.00 10202022H PW-DWR/WATER PROJECT APPLICATION FEE
662.98 OCT220PDH OPD/MISC. SUPPLIES/ ARPA #3 EQUIPMENT EVIDENCE RN 578.69 10202022H REC/FIELD PAINT AND CLOUD STORAGE
10297.00 J0741-22H BD/PLAN REVIEW LINWOOD, NEWVILLE, TEHAMA & 5TH
16.00 82888 FD/MEASURE A-PRINTER & COPIER
725.00 12501 BUILDING MAINTENANCE ON CITY HAIL AC UNIT
310.00 13361 PM/PREVENTATIVE MAIN ON WELL SOLAR
580.00 13362 PM/SOLAR LABOR SERVICE
Check Total
056141 10/27/22 AME00 AMERICAN FAMILY LIFE
056142 10/27/22 AME05 American River College
056143 10/27/22 ANDO6 EDGAR ANDRADE
056144 10/27/22 ANDO7 EDGAR ANDRADE
056145 10/27/22 ANI00 ANIXTER, INC.
056146 10/27/22 ATTO5 A T & T
056147 10/27/22 ATTO6 A T & T
890.00
736.24 267071 SUPPLEMENTAL INSURANCE
155.00 10212022 PD/BASIC TRAINING SACRAMENTO DEC. 5-9
100.00 NOV2022 Measure A UNIFORMS
96.00 0CT172022 PD/GYM MEMBERSHIP REIMBURSMENT
1702.66 194487120 PD/EVIDENCE ROOM
154.28 18888630 FD/MEASURE A-PHONES
24.87 10122022 PW/WH LIFT STATION -843
888.69 18923971 MULTI-DEPTS/PHONE
Check Total
056148 10/27/22 ATTO7 A T & T
056149 10/27/22 ATT10 AT&T MOBILITY (FIRST NET)
913.56
33.97 10072022 PM/SHOP
98.51 10022022 FD/MEASURE A-PHONES FOR ENGINE
144.35 X10102022 PW/CELL PHONE USAGE OCTOBER
Check Total 242.86
056150 10/27/22 AUTOO Auto Zone Inc. 10.75 409464658 PD/SUPPLIES' 056151 10/27/22 BRY02 BRYANT ENTERPRISES, LLC 1235.82 1648082 FD/MEASURE A-REPEATER SALES TAX FOR RADIOS 056152 10/27/22 BUR04 Burnham Vet 62 .50 151720 PD/FERAL CAT DISPOSAL 056153 10/27/22 BUTO4 Butte College 1918.54 2348 PD/147TH BASIC LE ACADEMY 056154 10/27/22 CAMOO Gary Campbell 591.63 10242022 FD/MEASURE A-REIMBURSEMENT FOR PARTS FOR REPEATER 056155 10/27/22 CES00 Kyle Cessna 100.00 NOV2022 Measure A UNIFORMS 056156 10/27/22 CHA01 Justin Chaney 100.00 10272022 FD/MEASURE A- UNIFORM NOVEMBER 2022 056157 10/27/22 COM02 Comcast 291.40 10202022 MULTI-DEPT/INTERNET CONNECTION 056158 10/27/22 COR04 CORBIN WILLITS SYSTEMS 508.34 10272022 MULTI-DEPTS/MONTHLY SOFTWARE SUPPORT 056159 10/27/22 CRE00 CREATIVE COMPOSITION 886.06 19983 WATER/SEWER BILLING ENVELOPES 056160 10/27/22 CSA00 CSAC-EIA 460.24 23400700 EMPLOYEE ASST PROGRAM OCT-DEC 2022 056161 10/27/22 DOJO3 DEPARTMENT OF JUSTICE 66.00 609617 PD/FINGERPRINT APPS,CHILD ABUSE, PEACE OFFICER 056162 10/27/22 ECLOO ECLECTIC HORSEMAN COMM., 255.00 59385 AC/WEBSITE HOSTING 4TH QUARTER 2022 056163 10/27/22 EINO2 Gregory P. Einhorn 4000.00 14733AUG CA/CONTRACT SERVICE 056164 10/27/22 ENJO0 ENJOY 459.00 202227207 AC/AD 1/2 PG. MAGAZINE NOV.ISSUE 2022 056165 10/27/22 ENLOO ENLOE MEDICAL CENTER 647.00 09082022 PD/PRE-EMPLOYMENT PHYSICAL 494.00 09222022 PD/PRE-EMPLOYMENT PHYSICAL
Check Total 1141.00
056166 10/27/22 FIRO2 FIREPENNY-FIREFIGHHTER EQ 1719.87 52246 PW/VACCON #69 EQUIP MAINTENANCE 056167 10/27/22 FLE04 FLEMING, JOHN 1825.00 10/12-25 BD/INSPECTION SERVICES 056168 10/27/22 FL003 JOSE FLORES 100.00 NOV2022 Measure A UNIFORMS 056169 10/27/22 FLOO4 JOSE FLORES 250.00 10212022 PD/PER DIEM 40HR FTO BASIC TRNING DEC. 5-9 002
REPORT.: Oct 27 22 Thursday
RUN • Oct 27 22 Time: 15:01
Run By.: Leticia Espinosa
CITY OF ORLAND
Cash Disbursement Detail Report
Check Listing for 10-22 thru 10-22 Bank Account.: 1001
PAGE: 002
ID #: PY-DP
CTL.: ORL
Check Check Vendor Net
Number Date Number Name Amount Invoice # Description
056170 10/27/22 FULOO KRISTOPHER FULLMORE 100.00 NOV2022 Measure A UNIFORMS 056171 10/27/22 GANO0 Gandy & Staley Oil Co. 2154.22 139783 PM-PD/OIL 056172 10/27/22 GLE02 GLENN COUNTY SHERIFF 20.00 092722-BS PD/LIVE SCAN ROLLING FEE 056173 10/27/22 GOLO1 GOLDEN STATE RISK 50671.02 ANC & EB DENTAL VISION AND HEALTH INSURANCE 056174 10/27/22 GRA02 GRAINGER, INC. 2388.31 146,153, PW/SHOP,FLEET & SAFETY SUPPLIES 056175 10/27/22 GR000 Ferguson Enterprises Inc 18409.70 005,905, PW-DWR/SUPPLIES 056176 10/27/22 HINO3 Hinderliter deLlamas & As 2950.00 5IN022107 ADMIN/#18 COMMUNITY QB CARD BUCKS SETUP 056177 10/27/22 HOMOO HOME DEPOT CREDIT SERVICE 599.75 3911723 FINANCE/DESK - PD/BUILDING MAINTENANCE 056178 10/27/22 HOU05 HOUSING TOOLS 2540.00 2496 LIBERTY BELL HOME MONITORING 056179 10/27/22 INS01 INSTRUMART 3567.94 609353 PM/WELL PUMP 056180 10/27/22 JOH02 SEAN JOHNSON 100.00 NOV2022 Measure A UNIFORMS 056181 10/27/22 KEL01 KELLER SUPPLY COMPANY 968.90 72233.001 PW/MULTI-CHLOR (WELLS) 056182 10/27/22 LINO° LINCOLN AQUATICS 3205.23 SN089318 REC/POOL SUPPLIES & EQUIPMENT 056183 10/27/22 LOW00 Katherine Lowery 100.00 NOV2022 Measure A UNIFORMS 056184 10/27/22 MAR17 MARTINakLE, RYAN 100.00 NOV2022 Measure A UNIFORMS 056185 10/27/22 MCM00 McMaster-Carr 159.05 460,023 PW/SEWER SUPPLIES 056186 10/27/22 MIL07 MILLS, DARYL 100.00 NOV2022 Measure A UNIFORMS 056187 10/27/22 MTS00 Mt. Shasta Spring Water 21.45 430233 FD/KEURIG RENT 056188 10/27/22 N0R37 NORTH STATE SCREENPRINTIN 29.82 195085 REC/SOCCER SHIRTS 056189 10/27/22 OHS00 OHS Student Body 405.00 10182022 REC/WRESTLING CAMP PARTNERSHIP 056190 10/27/22 PAC07 PACE ANALYTICAL SERVICES, 1210.03 815,079 PM/LAB SERVICES 056191 10/27/22 PAP01 PAPE MACHINERY 104.50 13996466 PARKS/MOWER PARTS 056192 10/27/22 PGE00 PG&E 23770.89 10172022 MULTI-DEPTS/UTILITY USAGE
89.56 10182022 PM/TRAFFIC CONTROL
Check Total
056193 10/27/22 PINO1 EDGAR PINEDO
056194 10/27/22 QUI02 QUILL CORP.
23860.45
100.00 NOV2022 Measure A UNIFORMS
153.34 27931776 CITYHALL/OFFICE SUPPLIES
263.01 27992707 MULTI DEPTS-SUPPLIES
Check Total
056195 10/27/22 RAWOO Keith Rawlings
056196 10/27/22 RICOO GERALD RICE
056197 10/27/22 RIVO2 ISRAEL RIVERA
056198 10/27/22 ROE02 Thomas Roenspie
056199 10/27/22 ROU01 Bruce Roundy
056200 10/27/22 SAC01 SACRAMENTO VALLEY MIRROR
056201 10/27/22 SCH18 JENNIFER SCHMITKE
056202 10/27/22 SHAO8 Shasta Safety Supply
056203 10/27/22 SUNOS Sun Life Financial
056204 10/27/22 SUTO2 SUTTON, BRANDON
056205 10/27/22 TOLO5 JEFFREY A. TOLLEY
056206 10/27/22 TOW00 TOWNE CARPET
056207 10/27/22 TRA02 TRANSAMERICA
056208 10/27/22 TUR01 Rae Turnbull
416.35
2039.64 10242022 AC/FACILITY RENOVATION
182.30 10142022 BOOT REIMBURSEMENT
200.00 OCT,N0V22 Measure A UNIFORMS
100.00 NOV2022 Measure A UNIFORMS
35.94 10212022 COUNCIL/MILEAGE REIMBURSEMENT
82.00 1035 CLERK/ELECTION- COUNCIL NOMINEES NOTICE
21.44 10182022 CLERK/MILEAGE REIMBURSEMENT
318.92 22525 PM/SAFETY SUPPLIES
4431.80 OCT 2022 GAP MEDICAL INSURANCE
100.00 NOV2022 Measure A UNIFORMS
13.75 10212022 COUNCIL/MILEAGE REIMBURSEMENT
1418.69 CG201883 AC/INSTALLATION OF NEW CARPET
594.00 OCT 2022 SUPPLEMENTAL INSURANCE
950.00 10272022 AC/PURCHASE PAINTING
003
REPORT.:
RUN •
Run By.:
Check
Number
Oct 27 22 Thursday CITY OF ORLAND PAGE: 003
Oct 27 22 Time: 15:01 Cash Disbursement Detail Report ID #: PY-DP Leticia Espinosa Check Listing for 10-22 thru 10-22 Bank Account.: 1001 CTL.: ORL Check Vendor Net
Date Number Name Amount Invoice # Description
056209 10/27/22 UNI01 UNITED RENTALS 2009.75 68740-001 PW-DWR/SUPPLIES 056210 10/27/22 VAL02 VALLEY ROCK PRODUCTS 1674.72 389,432 PW/DWR- SUPPLIES 056211 10/27/22 VANO0 VANTAGE POINT TRANSFER AG 1669.66 6111596 457 PLAN/304591 1669.66 6266668 457 PLAN/304591
Check Total 3339.32
056212 10/27/22 VER03 Verizon Wireless 304.08 918371311 PW/SCADA COMPUTER,IPADS, PD/LAPTOP
78.47 918371312 EEC/COMMUNICATIONS
164.04 918371313 FD/MEASURE A RESPONSE SERVICE FOR CITY ENGINE Check Total 546.59
056213 10/27/22 VLA00 RAYMOND J. VLACH 100.00 NOV2022 Measure A UNIFORMS 056214 10/27/22 WEL02 Wells Fargo Vendor Fin Se 148.70 022239468 BD-PLAN/COPIER LEASE 056215 10/27/22 WEX00 WEX BANK 84.85 551176BD BLDG/FUEL 1181.28 551176FD FD/FUEL
6584.82 551176PD PD/FUEL
3817.54 551176PW PM/FUEL
216.53 551176REC EEC/FUEL
Check Total 11885.02
056216 10/27/22 XYLOO Xylem Water Solutions USA 19489.82 556C44079 PW/SEWER PUMP LIFTSTATION 056217 10/27/22 YIFOO YIFTEE, INC 25000.00 4589 COMMUNITY E-GIFT CARDS Cash Account Total 222469.51
Total Disbursements 222469.51
Cash Account Total .00
004
REPORT.: 10/20/22
RUN • 10/20/22 Time: 14:39
Run By.: Deysy Guerrero
CITY OF ORLAND
Warrant Register
Warrant Payroll **Employee** Actual Fiscal Gross
Number Date Date Num Name Period Period Amount
14459 10/20/22 10/19/22 COX00 COX, PAYTON 10-22 04-23 172.50 14460 10/20/22 10/19/22 ESQ01 ESQUIVEL, ITZEL 10-22 04-23 82.50 14461 10/20/22 10/19/22 MAR03 MARTINS, PAULINA 10-22 04-23 90.00 14462 10/20/22 10/19/22 ST000 STORY, ZACHARY 10-22 04-23 82.50 14463 10/20/22 10/19/22 WATO4 WATHEN, MIDASIA 10-22 04-23 180.00 Z05645 10/20/22 10/19/22 ALV01 ALVA, MICAELA 10-22 04-23 2027.61 Z05646 10/20/22 10/19/22 ANDOO ANDRADE, EDGAR 10-22 04-23 3148.03 Z05647 10/20/22 10/19/22 BOW00 BOWERS, LINDA 10-22 04-23 408.00 Z05648 10/20/22 10/19/22 CAR03 CARR, PETER R 10-22 04-23 6153.85 Z05649 10/20/22 10/19/22 CES00 CESSNA, KYLE A 10-22 04-23 4168.00 Z05650 10/20/22 10/19/22 CHA01 CHANEY, JUSTIN 10-22 04-23 4633.08 Z05651 10/20/22 10/19/22 CRA00 CRANDALL, JEREMY 10-22 04-23 2606.67 Z05652 10/20/22 10/19/22 ESPOO ESPINOSA, LETICIA 10-22 04-23 2047.63 Z05653 10/20/22 10/19/22 FEN03 FENSKE, JOSEPH H 10-22 04-23 2988.19 105654 10/20/22 10/19/22 FL000 FLORES, JOSE D 10-22 04-23 3166.62 Z05655 10/20/22 10/19/22 FULOO FULLMORE, KRISTOPHER 10-22 04-23 3383.45 Z05656 10/20/22 10/19/22 GAMOO GAMBOA, YADIRA 10-22 04-23 302.10 Z05657 10/20/22 10/19122 GUE01 GUERRERO, DEYSY D 10-22 04-23 2596.16 Z05658 10/20/22 10/19/22 GUE02 GUERRERO, JORGE 10-22 04-23 2234.12 105659 10/20/22 10/19/22 HAROO ZOLLERHARRIS, TRAVIS 10-22 04-23 2111.69 Z05660 10/20/22 10/19/22 JOH01 JOHNSON, SEAN KARL 10-22 04-23 4632.76 Z05661 10/20/22 10/19/22 LOW00 LOWERY, KATHERINE 10-22 04-23 3669.27 Z05662 10/20/22 10/19/22 MAR02 MARTINDALE, RYAN EUGENE 10-22 04-23 3760.29 Z05663 10/20/22 10/19/22 MEJ00 APARICIO, LILIA MEJIA 10-22 04-23 2664.90 105664 10/20/22 10/19/22 MEZOO MEZA, JODY L 10-22 04-23 3859.13 105665 10/20/22 10/19/22 M/L00 MILLS, DARYL A 10-22 04-23 3239.52 Z05666 10/20/22 10/19/22 MONO3 MONDRAGON, MEAGAN N 10-22 04-23 1037.07 105667 10/20/22 10/19/22 MOR03 MORECI, RORY 10-22 04-23 165.00 Z05668 10/20/22 10/19/22 MYE00 MYERS, KEVIN 10-22 04-23 658.54 1,05669 10/20/22 10/19/22 OLIO° OLIVER, LINDA 10-22 04-23 408.00 Z05670 10/20/22 10/19/22 OVA00 OVARD, CONNOR 10-22 04-23 91.80 Z05671 10/20/22 10/19/22 PAI01 RAILLON, MICHAEL 10-22 04-23 2356.28 105672 10/20/22 10/19/22 PANO0 PANIAGUA, BLANCA A 10-22 04-23 698.82 205673 10/20/22 10/19/22 PEN01 PENDERGRASS, REBECCA A 10-22 04-23 3090.00 Z05674 10/20/22 10/19/22 PER00 PEREZ, MARGARITA T 10-22 04-23 2006.14 Z05675 10/20/22 10/19/22 PINO0 PINED°, EDGAR ESTEBAN 10-22 04-23 3295.94 105676 10/20/22 10/19/22 PORN PORRAS, ESTEL 10-22 04-23 1914.97 105677 10/20/22 10/19/22 PUNO0 PUNZO, GUILLERMO 10-22 04-23 2068.88 Z05678 10/20/22 10/19/22 PUR01 PURCHASE, HEATHER. 10-22 04-23 1575.44 105679 10/20/22 10/19/22 RIC01 RICE, GERALD W 10-22 04-23 2118.13 205680 10/20/22 10/19/22 RIVO0 RIVERA, ISRAEL 10-22 04-23 1354.07 105681 10/20/22 10/19/22 RODOO RODRIGUES, ANTHONY 10-22 04-23 2709.76 Z05682 10/20/22 10/19/22 ROE00 ROENSPIE, THOMAS LUKE 10-22 04-23 3877.71 105683 10/20/22 10/19/22 ROMOO ROMERO, ARNULFO 10-22 04-23 2812.16 Z05684 10/20/22 10/19/22 SANO2 SANDOVAL, LUCILA 10-22 04-23 1901.97 Z05685 10/20/22 10/19/22 SCH03 SCHMITKE, JENNIFER 10-22 04-23 2400.72 Z05686 10/20/22 10/19/22 SHAO2 SHANNON, KYLE ANTHONY 10-22 04-23 532.50 Z05687 10/20/22 10/19/22 STE01 STEWART, ROY E 10-22 04-23 2944.75 105688 10/20/22 10/19/22 SUA02 SUAREZ, BRYAN E 10-22 04-23 2097.71 Z05689 10/20/22 10/19/22 SUTOO SUTTON, BRANDON KIJANA 10-22 04-23 1675.84 105690 10/20/22 10/19/22 SWI00 SWINHART, ROBERT 10-22 04-23 1970.36 05691 10/20/22 10/19/22 VALOO VALENZUELA , BRENDA 10-22 04-23 316.54 605692 10/20/22 10/19/22 VLA00 VLACH, RAYMOND JOSEPH 10-22 04-23 5061.08 605693 10/20/22 10/19/22 VON00 VONASEK, EDWARD J 10-22 04-23 4383.93 119932.68
005
Item 5.B.
MINUTES OF THE ORLAND CITY COUNCIL
REGULAR MEETING HELD OCTOBER 18, 2022
CALL TO ORDER
Meeting called to order by Mayor Hoffman at 6:30 p.m.
Meeting opened with Pledge of Allegiance led by Mayor Dennis Hoffman.
ROLL CALL
Councilmembers present: Councilmembers Bruce Roundy, Chris Dobbs, Billy Irvin, Vice Mayor Jeffrey Tolley and Mayor Dennis Hoffman
Councilmembers absent: None
Staff present: City Manager Pete Carr; Assistant City
Manager/Director of Administrative Services Rebecca
Pendergrass; City Clerk Jennifer Schmitke; City Planner, Scott Friend; Police Chief Vlach
Staff via Zoom: Fire Chief Justin Chaney
ORAL AND WRITTEN COMMUNICATIONS
PUBLIC COMMENTS: None
CONSENT CALENDAR
A. Warrant List (payable obligations)
B. Approve City Council Minutes for October 4, 2022
C. Receive and file Arts Commission minutes of September 28, 2022 D. Accept Glenn Educational Center Utility Easement
E. CV2/3 Realignment of Allocations
Councilmember Bruce Roundy pulled Item B and Vice Mayor Jeffrey Tolley pulled Item D from the consent calendar.
Action: Vice Mayor Tolley moved, Councilmember Roundy seconded, to approve items A, C, and Eon the consent calendar. The motion carried by a voice vote 5-0.
Councilmember Roundy requested that the minutes from the October 4, 2022 meeting be amended to reflect his statement regarding the reduction of development impact fees for the Habitat for Humanity project. Councilmember Roundy suggested the 29% reduction spread equally across all categories (so all departments would share the cost), which was later approved by majority vote.
Action: Councilmember Roundy moved, Councilmember Dobbs seconded, to approve item B as amended. The motion carried by a voice vote 5-0.
Vice Mayor Tolley wanted to make note that the packet was missing the attached plat that was mentioned in the staff report for item 5.D., he stated he did receive the attachment at the meeting.
Orland City Council Minutes — October 18, 2022 Wage
006
Action: Councilmember Tolley moved, Councilmember Dobbs seconded, to approve item D on the consent calendar. The motion carried by a voice vote 5-0.
ADMINISTRATIVE BUSINESS
A. CHANGES IN HOUSING DEVELOPMENT LEGISLATION
City Planner Scott Friend briefly updated Council on new legislation that has passed recently that could someday affect Orland. Mr. Friend spoke about Senate Bill 9 (SB9) Housing Development: Approvals; AB 2011: Affordable Housing and High Road Jobs Act; SB897: Junior Accessory Dwelling Units; AB2344:
Wildlife Connectivity and Transportation Projects; AB 2449, AB2647 and SB 932. Mr. Friend shared that Legislature did not pass anything of substantial significance related to the environment and applicable to Orland.
Mayor Hoffman wanted on record that these are state laws and nothing that the City can change.
B. CITY-SPONSORED COMMUNITY E-GIFT CARDS
City Manager Pete Carr shared an update on the City-sponsored community e-Gift Card program to Council. Mr. Carr briefly went over the e-Gift card programs including branding, eligibility, marketing, incentives, and accountability. Mr. Carr shared that this week notifications have been sent out to all qualifying merchants. Qualifying merchants were sent an invitation to a virtual webinar to learn how to participate and how the Orland Queen Bee Bucks e-Gift Card Program will work on Wednesday October 19, 2022 at 3:00 PM, this was also posted on the City's Facebook page.
Mayor Hoffman asked if the merchants that will be participating will have a sign or sticker in their windows to let patrons know they accept Queen Bee Bucks. Mr. Carr shared that Yiftee will produce marketing materials to all qualifying merchants to allow patrons to know they are part of the gift card program.
Mr. Carr shared what the Queen Bee Bucks digital e-Gift card webpage could look like and explained that the site would be run completely by Yiftee.
Barry Foster, HdL consultant shared that his company's goal is to launch the site by November 1, 2022 as long as there are at least 12 merchants signed up for the program.
Two Councilmembers stated concerns and asked questions regarding the exclusion of businesses that are mobile or home based. Mr. Carr shared that the parameters of the program can always be modified by the majority of Council.
Councilmember Roundy asked for clarification of how to use the Queen Bee Bucks website and how he would get the bonus. Mr. Foster explained how purchases will get their card and bonus card through their email and explained they can save the image on their phone or print out a piece of paper.
Assistant City Manager Rebecca Pendergrass pulled up an example of YUBA BUCKS e-Gift card program that is also currently working with HdL and walked Council through the steps of purchasing a gift card.
Councilmember Irvin asked if there was an age limit on who you can send an e-Gift card to, and Mr.
Foster clarified that anyone with an email address can receive an e-Gift card.
Orland City Council Minutes — October 18, 2022 Wage
007
C. VERBAL UPDATE ON DROUGHT CONDITIONS AND WATER SUPPLY PROJECT City Manager Pete Carr provided an update on reported dry wells, stating there have been 4 additional well reported since the last City Council meeting. Currently the total of dry or at-risk wells being reported this year is 120. The total number of wells affected for this drought is now listed at 417.
Mr. Carr shared with Council that connections within City Limits are in progress (phase 1) and about 15% complete. Public Works Department is working on the project in between other weekly projects, today 60 feet of main line was installed. Mr. Carr shared the Public Works Director, Ed Vonasek is hopeful that phase 1 will be complete by January.
Mr. Carr stated that phase 2 (the yellow line that goes out into the County showing where the main lines are going to be) is about 90% completed between engineers and environmental considerations. Mr. Carr shared that he is hopeful phase 2 will be at 100% complete this fall and bids will be able to go out then.
Mr. Carr shared that the well that the Department of Water Resources (DWR) is building at west Walker Street is almost at 100% design ready, just waiting on a few engineering reviews that are needing to be addressed.
Mr. Carr stated that the City's municipal wells remain stable. Mr. Carr shared a 10-year review graph of the municipal well water level from October and March reads from 2013-2022.
CITY COUNCIL COMMUNICATIONS AND REPORTS
Councilmember Roundy:
• Attended the LAFCO meeting October 10, 2022.
• Will be attending the Glenn Groundwater Authority meeting October 21, 2022. • Will be attending the Golden State Risk Management Authority (GSRMA) training session October 21, 2022.
• Will be attending an investment meeting at City Hall October 21, 2022. • Thanked Councilmember Irvin for his kind words in a recent newspaper article. • There is a monthly meeting with the Superintendent of Orland schools; Councilmember Roundy felt a Councilmember should be present to represent the City and show partnership between the two groups.
Councilmember Dobbs:
• Shared that the new fire truck is almost complete and should be in Orland by mid-November.
Councilmember Dobbs thanked Assistant Chief McDermott and City staff for all the help on the grant, that helped make it possible to get the new fire truck.
Councilmember Irvin:
• Shared he has been interviewed a few times for newspapers for the upcoming elections. • Will be attending the Golden State Risk Management Authority (GSRMA) training session October 21, 2022.
Vice Mayor Tolley:
• Nothing to report.
Mayor Hoffman:
Orland City Council Minutes — October 18, 2022 Wage
008
• Will be attending the Chamber of Commerce meeting October 19, 2022. • Will be attending the Planning Commission meeting October 20, 2022. • Will be attending the Golden State Risk Management Authority (GSRMA) training session October 21, 2022.
• Will be attending the Chamber of Commerce Rib Cook-Off October 22, 2022.
MEETING ADJOURNED AT 7:39 P.M.
Jennifer Schmitke, City Clerk Dennis G. Hoffman, Mayor
Orland City Council Minutes — October 18, 2022 Wage
009
Item 5.C.
CITY OF ORLAND
RESOLUTION NO. 2022-04
RESOLUTION TO IMPLEMENT TELECONFERENCING REQUIREMENTS
DURING A PROCLAIMED STATE OF EMERGENCY
WHEREAS, the Ralph M. Brown Act requires that all meetings of a legislative body of a local agency be open and public and that any person may attend and participate in such meetings; WHEREAS, the Brown Act allows for legislative bodies to hold meetings by teleconference, but imposes specific requirements for doing so;
WHEREAS, on March 17, 2020, in order to address the need for public meetings during the present public health emergency, Governor Newsom issued Executive Order No. N-29-20, suspending the Act's teleconferencing requirements; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order No. N-8-21, continuing the suspension of the Brown Act's teleconferencing requirements through September 30, 2021; and
WHEREAS, these Executive Orders allowed legislative bodies to meet virtually as long as certain notice and accessibility requirements were met; and WHEREAS, the State Legislature amended the Brown Act through Assembly Bill No. 361 (AB 361) on September 16, 2021; and
WHEREAS, AB 361 amended the Brown Act so that a local agency may use teleconferencing without complying with the regular teleconferencing requirements of the Act, where the legislative body holds a meeting during a proclaimed state of emergency and makes certain findings; and
WHEREAS, Government Code section 54953 requires that the legislative body make additional findings every 30 days in order to continue such teleconferencing.
NOW THEREFORE, the City of Orland hereby finds, determines, declares, orders, and resolves as follows:
1. That the foregoing recitals are true and correct and incorporates them by this reference.
2. The City Council of the City of Orland finds, by a majority vote, the following:
a. That there exists a proclaimed state of emergency; and b. State or local officials have imposed or recommended measures to promote social distancing.
010
3. The City Council and any of its committees, joint committees, ad hoc groups, and staff is authorized to take all steps and perform all actions necessary to execute and implement this Resolution in compliance with Government Code section 54953.
4. This Resolution shall take effect November 1, 2022 and shall remain in effect for thirty (30) days thereafter (until December 6, 2022), provided the conditions set forth in Section 2 remain.
PASSED AND ADOPTED by the Orland City Council this first day of November, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Dennis G. Hoffman, Mayor
ATTEST:
Jennifer Schmitke, City Clerk
By:
I, Jennifer Schmitke, City Clerk of the City of Orland, hereby certify that the attached is a true and correct copy of a Resolution duly made by the City Council at a regular meeting of said City Council, at Orland, California, on the first day of November 2022, the original of which is on file in my office and duly and regularly entered in the official records of proceedings of the City Council of the City of Orland.
Dated:
Jennifer Schmitke, City Clerk
011
Item 5.D.
AGREEMENT BETWEEN THE CITY OF ORLAND AND WALTER LEON PONCI
FOR VACATION OF CITY STREET IN EXCHANGE FOR SPECIFIC
CONSIDERATION
The City Orland, a general law city of the state of California (Orland), and Walter Leon Ponci (Ponci) (collectively, Parties), hereby agree as set forth herein (Agreement):
1. Ponci wishes to acquire a portion of Central Street, a city street of and in Orland (Street). The portion of the street sought to be acquired is depicted in Exhibit A.
2. The Street, currently owned in fee by Orland, is not required for street or highway purposes, lies contiguous with property owned by Ponci, and has not been used as a public street for many years. Orland intendeds to abandon the Street.
3. In exchange for the consideration set forth in paragraph 4, Orland shall vacate the Street pursuant to the summary procedure set forth in California Streets and Highways Code sections 8330 et seq., on the ground that this portion of city roadway is a surplus street not required for street purposes. Upon such vacation, title of said property shall be transferred by deed in fee to Ponci, with a utility easement for access to City utilities, including water and sewer, and City services, reserved in favor of the City. Ponci shall prepare any documents necessary for the transfer of title, and for creating and reserving the utility easement, with review by the City, and shall be responsible for recording the same.
4. Consideration: Ponci shall pay to the City the sum of $10.00.
5. To the extent that the matters herein constitute a project, they are categorically exempt from the provisions of the California Environmental Quality Act, pursuant to 14 CCR 15301 (existing facility), 14 CCR 15305 (minor alterations of land use) and 14 CCR 15312 (sale of surplus property).
6. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney's fees, costs, and expenses incurred.
7. All notices, demands, or other communications which this Agreement contemplates or authorizes shall be in writing and shall be personally delivered or mailed to the respective party at the respective party's published business address.
8. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both parties.
9. In the event any term of this Agreement is held invalid by a court of competent jurisdiction, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect.
Agreement between the City of Orland and Walter Leon Ponci Page 1. 012
10. The interpretation, validity, and enforcement of the Agreement shall be governed by and construed under the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Glenn.
11. This Agreement, including all attachments, comprises the entire integrated understanding between the parties concerning the matters stated herein.
IN WITNESS WHEREOF the parties do hereby agree to the full performance of the terms set forth herein.
CITY OF ORLAND WALTER LEON PONCI
By:
Title:
Date: Date:
Attest:
By:
Title: CITY CLERK
Date:
Approved As To Form:
By: Gregory P. Einhorn
Title: CITY ATTORNEY
Date:
Agreement between the City of Orland and Walter Leon Pond i Page 2. 013
Item 5.D.
RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY OF ORLAND
VACATING AN UNUSED CITY STREET
The City Council of the City of Orland does hereby resolve as follows:
WHEREAS, California Streets and Highways Code section 8334 provides that a city may summarily vacate an excess street or highway not required for street or highway purposes; and, WHEREAS, that portion of Central Street, a city street of and in Orland, depicted in Exhibit A (Street), currently owned in fee by the City, is not required for street or highway purposes, lies contiguous with property owned by Walter Leon Ponci (Ponci), and has not been used as a public street for many years; and,
WHEREAS, upon vacation of this surplus street, the City will grant by deed the City's fee interest in the Street to Ponci, reserving a Public Utility Easement and a Public Service Easement for access in favor of the City; and,
WHEREAS, vacation of excess street property is categorically exempt under the California Environmental Quality Act Guidelines (CEQA), pursuant to 14 CCR 15301 (existing facility), 14 CCR 15305 (minor alterations of land use) and 14 CCR 15312 (sale of surplus property); and,
WHEREAS, based on the staff report, staff presentation and having heard all evidence offered by any person interested in the proposed vacation, the City Council of the City of Orland finds that the Street described in Exhibit A attached to this Resolution, is unnecessary for present or prospective public use.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orland, pursuant to California Streets and Highways Code section 8334, it is hereby ordered that the portion of Central Street within the City of Orland, depicted in Exhibit A, is hereby vacated and the City Clerk is authorized and directed to cause a certified copy of this resolution to be recorded in the office of the County Recorder of Glenn County. From and after the date this resolution is recorded, the street vacated no longer constitutes a public street.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute grant deeds to Ponci of and regarding the portion of Central Street within the City of Orland, depicted in Exhibit A.
Resolution Vacating Unused City Street—Portion of Central Street Page 1. 014
Passed and adopted this 1st day of November 2022, by the City Council of the City of Orland by the following vote:
AYES:
NAYS:
ABSENT:
Dennis G. Hoffman, Mayor
ATTEST: APPROVED AS TO FORM:
Jennifer Schmitke, City Clerk Gregory P. Einhorn, City Attorney Resolution Vacating Unused City Street—Portion of Central Street Page 2. 015
Attachment
A
1 016
Item 5.E.
Recreation Commission
Karen Baldridge, Chair
Shannan Ovard, Vice Chair
Larry Carmona
Joser Rosales
Jason Ovitz
City of Orland
Recreation Commission Minutes
June 22nd, 2022, 6:30pm
1. CALL TO ORDER — 6:30 p.m.
Meeting called to order by Chairperson Baldridge at 6:32pm
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
Commission members present — Chair Karen Baldridge, Vice Chair Shannan Ovard, Commissioner Joser Rosales.
Commission members absent — Commissioner Ovitz and Carmona Staff members present — Recreation Director Joe Fenske
4. ORAL AND WRITTEN COMMUNICATIONS
Citizen Comments:
Any person may address the Recreation Commission at this time upon any subject within the authority of the Recreation Commission; however, public is advised to limit discussion to one presentation per individual. Please state your name and address for the record.
No citizen comments at this time.
5. CONSENT CALENDAR
A. Approve March 23rd, 2022, Recreation Commission minutes.
Vice Chair Ovard moved, seconded by Commissioner Rosales to approve consent calendar. Motion carried 3-0.
6. ADMINISTRATIVE COMMUNICATIONS, REPORTS, AND ACTIONS
A. Skate Park Update — Vice Mayor Tolley
Vice Mayor Tolley presented to the Commission the results from the survey that was sent out through the school district. 257 surveys were returned 85% of the surveys supported a skate park in Orland. Vice Mayor Tolley highlighted positive and negative responses that were written in on the survey. 85% of the responses said they would or someone they know would use the skate park. Orland residents Deborah Fogarty, Dianna Graves and Leilani Miller spoke in favor of the skate park. The Commission discussed how this survey didn't accurately represent the residents of Orland as it was sent out to the schools in the Orland District. Recreation Commission wanted cost estimates of a skate park. Recreation Director Joe Fenske provided information on the current project list and funding allocated for Recreation projects that was approved by City Council on February 1, 2022. After and in-depth discussion the Recreation Commission is recommending the following to City Council; move forward with more information; City staff does a City resident survey, including cost estimate of skate park, bring forward possible locations for skate park, and city provides minimal cost not to exceed 5% of total project cost. Commission Ovard made motion and Commission Rosales seconded. Motion carried 3-0.
B. Summer Programs and Activities Update — Recreation Director Joe Fenske 017 Recreation Director Joe Fenske updated the commission on all summer programs. Mr. Fenske stated all programs are running smoothly and program numbers are up from previous years. Mr. Fenske stated the Parent Code of Conduct that was implemented this year has helped solve some of the issues in the past.
Mr. Fenske stated that he did have to implement the Code of Conduct in adult basketball but overall, it is helping. Mr Fenske said partnership camps with Orland High School are going extremely well.
7. COMMISSIONER REPORTS
A. Miscellaneous reports if any from commissioners.
None at this time.
8. ADJOURNMENT
Meeting adjourned at 8:19pm
018
CITY OF ORLAND
CITY COUNCIL AGENDA ITEM #: 6.A.
MEETING DATE: November 1, 2022
TO: Honorable Mayor and Council
FROM: City Manager Pete Carr
SUBJECT: Pension Funding and Capital Planning Update (Discussion/Direction) City Staff and Consultant are reporting on pension funding and advising on options for risk management and funding future capital facilities.
BACKGROUND
The City retains the services of financial fiduciary Capitol Public Finance Group (PFG), LLC to advise on capital project financing and pension bond funding. The City Council Policy on Pension Funding directs Staff to provide an annual update to Council.
DISCUSSION
Jeff Small of Capitol PFG will discuss and advise the Council on results of the pension obligation bond (POB), including a net savings of approximately $70,000 to date. He will also provide advice to the City on options for risk management for potential future pension obligations as well as the City's objectives of planning for funding of a Public Safety Center (PFC).
Attachment: Pension Funding Update from Capitol PFG for presentation at Orland Council meeting
RECOMMENDATION
No specific action recommendation is presented at this time.
Staff welcomes direction from Council.
Fiscal Impact of Recommendation: N/A
019
CITY OF ORLAND
2022 PENSION FUNDING UPDATE
NOVEMBER 1, 2022
Capitol Public Finance Group, LLC
2436 Professional Drive, Suite 300
Roseville, CA 95661
T (916) 641 2734
F (916) 921 2734
www.capitolpfg.com 020
As of September 21, 2021
Accrued Liability
2021 POB Deposit
Funded Ratio
Safety Plan
$10,522,923
$1,552,910
94.48%
Miscellaneous
Plan
$14,203,292
$10,966,795
$2,420,045
$816,452
94.25%
Market Value of Assets $8,389,013
Unfunded Accrued Liability $581,000
SECTION 1: PENSION FUNDING POLICY
The City Manager will annually review actuarial valuations. As part of the review, the City Manager will take into account criteria such as the affordability of annual contributions, increases or decreases in unfunded liabilities and funded status.
The City Manager will periodically make note of factors that influence the unfunded liabilities such as changes to the discount rate, investment earnings on assets, assumption changes as a result of a new experience study and actual experience changes.
Following the reviews, the City Manager shall recommend to the City Council any changes deemed necessary or desirable.
SECTION 2: FUNDED STATUS
The City has a goal of accumulating sufficient assets held at CalPERS to maintain a minimum funded status of 80% and a target funding status of 100%. The Chart below summarizes the Funded Status from the CalPERS Actual Valuation as of June 30, 2021. ,"•:‘, e,
,
.1.,..4-1.- .-mA,At.-, -- -*I alrig.
,,,..tenvontwildA ,tatusA ‘,. .
.
.
• :,-li,
PEPRA Safety PEPRA Safety Miscellaneous PEPRA Combined
As of June 30, 2021 Safety Plan Fire Police Plan Miscellaneous UAL Accrued Liability $10,522,923 $57,422 $446,847 $14,203,292 $428,287 $25,658,771 Market Value of Assets $8,389,013 $42,004 $470,507 $10,966,795 $443,807 $20,312,126 Unfunded Accrued Liability $2,133,910 $15,418 -$23,660 $3,236,497 -$15,520 $5,346,645 Funded Ratio 79.72% 73.15% 105.29% 77.21% 103.62% 79.16% The City issued a $4,060,000 pension obligation bond (POB) in September 2021 with an interest rate of 2.95%. The most recent actuarial valuation does not account for the POB as it was issued after June 30, 2021. The Chart below summarizes the estimated Funded Status including the POB. The POB refinanced a portion of the Safety and Miscellaneous Unfunded Actuarial Liability (UAL).
Estimated CalPERS Pension Funded Status Including
2021 POB
1 November 1, 2022
'FC; 021
Required Employer Contribution for Fiscal Year 2023-24
Estimated
Normal Cost UAL Payment
Estimated Total
Contribution
Safety $124,810 $71,391 $196,201
PEPRA Safety Fire $12,434 $2,216 $14,650
PEPRA Safety Police $67,718 $0 $67,718
Miscellaneous $157,612 $94,186 $251,798
PEPRA Miscellaneous $50,812 $0 $50,812
Total $413,386 $167,793 $581,179
SECTION 3: AFFORDABILITY
The table below shows the required employer contribution for Fiscal Year 2023-24. It is provided by CalPERS in early fiscal year 2022-23 to allow for budgeting in the next fiscal year.
Note: The UAL payment above is based on making monthly payments. The payment may be reduced approximately 3.3% by paying in full prior to July 31st.
The following tables show the costs of funding the UAL with the 2021 POB and the savings for 2022-23 and 2023-24. To date the City has netted approximately $70,345 in savings. 2022-23 UAL Payments
Actual
2022-23
W/O POB
2022-23
Savings
2022-23
Safety $ 79,934.00 $ 222,309.00
Pepra Safety Fire $ 2,496.00 $ 2,496.00
Pepra Safety Police $ 2,484.00 $ 2,484.00
Miscellaneous $ 108,740.00 $ 339,143.00
Pepra Miscellaneous $ 2,717.00 $ 2,717.00
Total CalPERS $ 196,371.00 $ 569,149.00
8/1/2022 POB $ 338,135.00
2/1/2023 POB $ 56,418.00
Total POB $ 394,553.00
Total UAL $ 590,924.00 $ 569,149.00 $ (21,775.00)
2 November 1, 2022
Capitol I PEG
022
Since 2000, CalPERS Returns Have Averaged 6.43%, with
the Most Recent 10 Years Averaging 8.03%
-15.00%
-20.00%
-25.00% -
-30.00% -
e eq.00,00.,904,0,%.,,,,,00,-.40,,,, 1,.1",0'111.
June 30
25.00%
20.00%
15.00./o
10.00%
5.000/a
-10.00%
2023-24 UAL Payments
Actual W/O POB Savings
2023-24 2023-24 2023-24
Safety $ 69,081.00 $ 229,958.00
Pepra Safety Fire $ 2,144.00 $ 2,852.00
Pepra Safety Police $ - $ 2,569.00
Miscellaneous $ 91,138.00 $ 350,812.00
Pepra Miscellaneous $ - $ 2,811.00
Total CalPERS $ 162,363.00 $ 589,002.00
8/1/2022 POB $ 281,418.75
2/1/2023 POB $ 53,100.00
Total POB $ 334,518.75
Total UAL $ 496,881.75 $ 589,002.00 $ 92,120.25
SECTION 4: EARNING RESULTS
For Fiscal Year ending June 30, 2021, CalPERS reported investment earnings of 21.3%. For Fiscal Year ending June 30, 2022, CalPERS estimates investment earnings of (-6.1%). 3 November 1, 2022
023
CalPERS Discount Rate
Changes
2021 6.800%
2020 7.000%
2019 7.250%
2018 7.375%
2017 7.500%
SECTION 5: DISCOUNT CHANGES
Actuarial valuations are based on assumptions regarding future plan experience including investment return, payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The primary economic assumption is the discount rate.
The discount rate refers to the investment return. As part of the Asset Liability Management process, in November 2021, the CalPERs Board utilized a portion of the investment gain to offset the cost of reducing the discount rate assumption from 7.0% to 6.8%. A lower discount rate has the following impacts:
• Reduces investment risk
• Guards against future investment returns being too low • The change in discount rate results in a higher unfunded liability that is paid for by a portion of the 21.3% investment gain. With the discount rate change, the net return for 2021 was 14.3%.
Below are historical changes to the discount rate.
SECTION 6: ASSUMPTION CHANGES
In addition to the Discount Rate, several demographic assumptions are used to set the contribution schedule of employee and employer contributions. These demographic assumptions include mortality rates, retirement rates, disability rates, and rates of salary increases.
In 2021, CalPERS completed its Experience Study and Review of Actuarial Assumptions.
Significant outcomes of the study include:
CalPERS noted modest improvements in post-retirement mortality rates for healthy male and female recipients. Recommended mortality rate modifications result in increased life expectancy at age 55 of 0.7 years for males and by 0.4 years for females.
Some groups experienced lower numbers of retirements than expected including State Miscellaneous, Schools Pool and Public Agency Miscellaneous plans. Other groups such as 4 November 1, 2022
024
CHP, State Peace Officers and Firefighters and certain public agency safety groups experienced more retirements than expected.
Higher than expected salary increases were observed within certain groups including CHP, POFF, State Miscellaneous, State Safety, and the Schools Pool. Other groups experienced slightly lower than expected increases including State Industrial and Public Agency County Peace Officers.
A new set of assumptions for terminations with vested benefits and refunds is being proposed for all 11 groups. Significant differences were observed between males and females. Females generally terminate at higher rates than males. Separate rates were developed for males and females in this study. The proposed assumptions predict higher rates of termination except for State Industrial.
CalPERS analysis indicated that in general there have been fewer disability retirements for State Miscellaneous Female, State Industrial, State Safety, Schools and public agency members than expected based on the current assumptions. CalPERS recommending slightly reduced non-industrial disability retirement rates for these groups. For all other groups, the actual experience was generally close to expected.
SECTION 7: RECOMMENDATIONS
The City has exercised two methods for addressing its unfunded liabilities at CalPERs:
Prepaying annual UAL payments by July 31; and restructuring most of its UAL with a POB.
The funded status of the Safety and Miscellaneous Plans is approximately 94%.
Although most of the UAL has been eliminated, the City can save approximately $5,430 in 2023-24 by prepaying its UAL payments by July 31, 2023. This allows for a savings of approximately 3.3% of the scheduled UAL payment.
In addition, the City may consider establishing a Section 115 Irrevocable Exclusive Benefit Trust (Pension Trust) to be used exclusively for reimbursing or paying pension benefits and for accumulating funds to help buffer against future pension costs.
Contributions to a Pension Trust are discretionary. The City can utilize the Pension Trust and amounts at CalPERS to maintain its funding target range of 80%-100%. 5 November 1, 2022
025
CITY OF ORLAND
CITY COUNCIL AGENDA ITEM #: 6.B.
MEETING DATE: November 1, 2022
TO: Honorable Mayor and Council
FROM: Leticia Espinosa, City Treasurer
Pete Carr, City Manager/Finance Director
SUBJECT: Investment Report and Debt Reduction Proposal (Discussion/Action) City Treasurer is informing City Council of an adjustment in investment allocations, and seeks authorization to utilize available cash to pay down certain outstanding loans.
BACKGROUND
As noted in Paragraph IV of the City of Orland Investment Policy, the City Treasurer is authorized to invest funds upon the direction of the City of Orland Investment Committee. Paragraph V provides for a quarterly investment report. The financial audit report also provides an audited annual summary of investments (see FY21 audit, pg. 24-25), and the City's financial position is reviewed as part of the annual budget process in May-June.
The City Investment Committee is comprised of the City Treasurer, Administrative Services Director/Accounting Manager, the Mayor and one other Councilmember — currently Mayor Dennis Hoffman and Councilmember Bruce Roundy. The City's CPA also participates and advises, along with the City Manager/Finance Director. The Committee advises the Treasurer on the City's investment portfolio and debt management.
In March 2022, Council directed the Treasurer to pay off certain outstanding loans with available cash and indicated interest in continuing to pay off debt if possible. The result of this action is reflected on the current City Budget page 36.
DISCUSSION
All of the City's reserve cash (approximately $9 million) representing a combination of General, Water, Sewer, Development Impact (DIE) and other funds, is invested with the Local Agency Investment Fund, which is currently paying 1.35% interest on the City's funds. Based on two recent Investment Committee meetings, the Treasurer has researched rates for alternatively investing City funds and is reallocating $1 million into one 12-month certificate of deposit (CD) @ 1.75% interest and $1 million into one 24-month CD @ 2.00%.
Considering the City's current cash position, growing but still relatively low rate of return on investments, and portfolio of outstanding debts, the City Treasurer and Investment Committee 026
propose the City utilize cash resources to pay down or pay off two lease agreements (loans) before their maturity dates. Neither of these agreements has an early payoff penalty.
1. Blue Frog wastewater treatment pond aerators @ 5% interest with current expiration 2024; City will save $9,448.71 in avoided interest plus two annual fees for personal property tax ($7500 per year) for a total savings $24,448.71. Payoff is $ 251,568.36.
2. Fire Ladder Truck @ 3% with current expiration of 2026, saving $15,086.02 in avoided interest. Payoff is $300,262.24.
These items are included in the Fiscal Year 2022-2023 Budget, page 36. Note that the Blue Frog project is a Sewer Fund expense, while the Ladder Truck is a Measure A / Public Safety Fund expense; neither affects the General Fund.
Attachment: Quarterly Treasurer Report as of October 31, 2022 RECOMMENDATION:
Authorize Treasurer to utilize current cash assets to pay off all or a portion of the proposed lease agreement indebtedness.
Fiscal Impact of Recommendation:
Up to $552k in expense which will produce nearly $40k in savings by avoiding future interest payments, less the interest the City might have earned on the invested cash. 027
City of Orland
Report of the Treasury
Schedule of Cash and Investments
As of October 21, 2022
Pursuant to Government Code Section 53646, listed below is a schedule of Cash and Investments held by the City of Orland Description of Security/Financial Institution
Investment
Policy Reconciled
Category Balance
Cash Held on Hand:
City Hall 150
City Pool 25
Public Works 35
Police 100
Subtotal 310
Cash and Investments Held by Banking Institutions:
Umpqua Bank:
Checking Accounts, General and Payroll N/A $ 215,077
Deposit Account N/A $ 501,566
Evidence Fund Account* 14,327
Housing/Economic Development Program Income Account* D $ 848,497 Subtotal $ 1,579,467
*. restricted use
Local Agency Investment Fund (LAIF),Office of the Treasurer, State of CA LAIF Current interest rate 1.276
$ 9,060,855
Total Cash and Investments Held by the City of Orland $ 10,640,632 I Certify that this report reflects all Government Agency cash and pooled investments and is in conformity with the investment policy of the City of Orland as stated in the annual investment policy approved by the City Council.
A copy of the investment policy is available at the office of the City Clerk.
The investment program herein provides sufficient cash flow liquidity to meet the estimated expenditures for the next 180 days.
Submitted: Leticia Espinosa/City Treasurer
028
CITY COUNCIL AGENDA ITEM
Item No.: 6.0.
Meeting Date: November 1, 2022
From: Paul W. Rabo, City Engineer
Subject: Annual Review and Possible Adjustment to Water and Sewer Rates Background:
The City of Orland operates and maintains a public water system consisting of six wells, one elevated storage tank, over 400 fire hydrants, 34 miles of water distribution main and over 2,600 metered water services. The City is not responsible for maintenance of water services beyond the water meter. The City's sanitary sewer system includes 30 miles of pipelines, 400 sanitary sewer manholes, and four lift stations. The City is not responsible for maintenance of sewer service laterals beyond the right-of-way.
See Attachment A for an update on the City's water and sewer system Capital Improvement Projects.
Per Municipal Code Section 13.04.350 the City of Orland shall perform an annual review of the water and sewer rates and make adjustments as necessary. The Consumer Price Index for the period beginning September 2021 and ending September 2022 shows an increase of 4.8% in water and sewer maintenance costs. The Engineering News Record shows construction cost increases of 5.7% for the same period.
Current and Proposed Water Rates:
City staff does not recommend an increase to water rates beginning in January 2023. The existing and proposed water rates are:
Inside City Limits Outside City Limits
Existing Proposed Existing Proposed
Fixed Bi-Monthly Charge Rate $63.31 $63.31 $126.63 $126.63 Per 1,000 gallons with more than
15,000 gallons $1.70 $1.70 $1.70 $1.70
Current and Proposed Sanitary Sewer Rates:
City staff recommends an increase to sewer rates beginning in January 2023. The existing and proposed sewer rates are:
Inside City Limits Outside City Limits
Existing Proposed Existing Proposed
Fixed Bi-Monthly Charge Rate $61.61 $64.57 $123.22 $129.13 Per 1,000 gallons with more than
15,000 gallons $0.88 $0.92 $0.88 $0.92
Requested Action:
Adopt Resolution 2022- "A Resolution of the City Council of the City of Orland to Establish Water and Sewer Rates for 2023".
Fiscal Impact:
Increased revenues will be put towards projects shown in the Capital Improvement Plan (CIP) and maintenance operations.
Approved by City Manager: i7 f.
ATTACHMENT A
WATER SYSTEM CAPITAL IMPROVEMENT PROJECTS
In 2014 the City completed a "Water System Capacity Study" and "Meter and Water Loss Management Report". Both reports recommended projects to be included in the City's 15-year Capital Improvement Plan. These projects and estimated costs are shown in the tables below. Since 2015 the City Council has increased water rates to cover operational expenses and generate revenue for the nearly $10 million in anticipated repairs and upgrades. Revenue from rates has covered operational expenses and been sufficient to set aside reserves of $3.5 million to date.
It should be noted that a number of the capacity related improvements are population driven. This means those capacity increasing items may not need to be as large, or could be delayed, should the City's population not increase as projected in the General Plan. On the other hand, adding water service connections, outside City limits as part of the Orland Groundwater Supply Project, has the effect of increasing the population.
Additionally, some of the distribution improvements will increase efficiency and overall production. With reductions to water consumption, it is possible some of the distribution improvements could be delayed.
It can be expected there will be some additional improvements and repairs, not yet identified, which will occur each year.
CAPACITY IMPROVEMENTS
2014 Cost 2022 Cost
Eva Drive well Completed Completed
Central building Completed Completed
Suisun storage (DWR funded storage tank) $1.4M $1.9M
Well 2 (DWR funded well) $1.2M $1.6M
Corp yard storage $1.4M $1.9m
Well 3 (proposed at 6thStreet) $1.2M $1.6M
TOTAL: $5.2M $7.0M
DISTRIBUTION IMPROVEMENTS
2014 Cost 2022 Cost
Leak Detection Cornpleted Completed
Pump efficiency Completed Completed
Well SCADA Completed Completed
Smart irrigation Completed Completed
Main replacement - general $140k $190k
Main replacement - between storage tanks $1.5M $2.0M
Meters & radio data $1.1M $1.5M
Water loss software $50k $70k
TOTAL: $2.79M $3.76M
The City has completed many projects shown in the Capital Improvement Plan including the Eva Drive 030
Well in 2016. The Central Well building improvements including a new variable frequency drive, SCADA interface and numerous other upgrades were completed in 2019. Leak detection, pump efficiency and Supervisory Control and Data Acquisition (SCADA) system improvements have also been completed. The water storage tank proposed for the Suisun Street well site has been relocated to the Sixth Street site which will include another municipal groundwater well.
The Public Works Department is also interested in installing dedicated generators at the Lely, Roosevelt and Central well sites. The generators would allow the municipal well to continue operating during power outages. These projects and construction costs have not been included in the Capital Improvement Plan at this time.
The City is currently working with California Department of Water Resources (DWR) and Glenn County to construct water improvements to serve those in the county that have reported dry wells. This project will add approximately eight miles of water main, fire hydrants, water valves and water services for the City to own, operate and maintain. Two of the project phases are dedicated to the design and construction of a new municipal groundwater well and water storage tank. The proposed DWR funded groundwater well could be considered a replacement for CIP Well 2 and the storage tank could be considered the replacement for the Suisun storage. It should be noted the groundwater well being constructed with DWR funding will be designed to produce enough groundwater to accommodate county residents who will be connected to the City's water system in the coming months.
To the extent that grant funding is being identified and obtained, and customers continue to conserve water, new infrastructure is being installed to meet demand with less pressure on rates to customers.
Current rates are deemed sufficient for current operations and projected near-term capital needs.
SEWER SYSTEM CAPITAL IMPROVEMENT PROJECTS
Similar to the water rates, City Council has increased sanitary sewer rates since 2015 to cover operational expenses and generate revenue for capacity, conveyance and treatment repairs and upgrades. Revenue from rates has covered operational expenses and has been sufficient to set aside approximately $860,000 in reserves.
The City has completed improvements at the sewer ponds including the installation of a Blue Frog system to digest wastewater sludge within the ponds and a bypass channel at the headworks. The new gravity sewer trunk line along County Road MM has also been completed. Additional upgrades and repairs have been occurring at sanitary sewer pump stations within the system as they are needed and the installation of SCADA systems at pump stations will be implemented in the next few years.
The City will be accepting ownership and maintenance of a new lift station located along Cortina Drive in the coming months. The developer has fronted the cost for the design and construction of lift station and will be reimbursed with a combination of ARPA and Sewer Funds. 031
RESOLUTION 2022 -
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ORLAND TO ADJUST
WATER AND SEWER RATES
WHEREAS, the City Council of the City of Orland established the adjustment of water and sewer rates by adopting Ordinances 2005-05 and 2010-01; and WHEREAS, the City of Orland Municipal Code Section 13.04.350.B provides for adjustment of said water and sewer rates; and
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. That the City Council of the City of Orland does hereby adopt the adjusted water and sewer rates.
2. That the adjusted water and service rates will take effect 60 days thenceforth, on January 1,2023.
PASSED AND ADOPTED this 1st day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
Dennis G. Hoffman, Mayor
ATTEST:
Jennifer Schmitke, City Clerk
I, Jennifer Schmitke, City Clerk, of the CITY OF ORLAND, hereby certify that the attached is a true and correct copy of a Resolution duly made by the City Council at a meeting of said City Council, at Orland, California, on the day of , 2022,
the original of which is on file in my office and duly and regularly entered in the official records of proceedings of the City Council of the CITY OF ORLAND.
Dated:
Jennifer Schmitke, City Clerk
032,