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CITY OF RANCHO SANTA MARGARITA
CITY COUNCIL REGULAR MEETING MINUTES
April 13, 2022
The meeting was called to order at 7:00 p.m. in the Council Chambers. Present: Mayor Anne D.
Figueroa, Mayor Pro Tempore Jerry Holloway, Council Members Carol A. Gamble and Bradley J. McGirr (4). Absent: Council Member L. Anthony Beall (1). The Salute to the Flag was led by Boy Scout Troop 121.
Staff Present: Jennifer M. Cervantez, City Manager; Greg Simonian, City Attorney; Brendan Dugan, Public Works Director/City Engineer; Cheryl Kula, Development Services Director; Stefanie Turner, Finance Director; Mihaela Kennedy, Captain; Amy Diaz, City Clerk.
1. PRESENTATIONS AND PROCLAMATIONS
Mayor Figueroa and Mayor Pro Tempore Holloway presented the following:
1.1 PROCLAMATION - DEPARTMENT OF MOTOR VEHICLES, DONATE LIFE CALIFORNIA MONTH, APRIL 2022
1.2 CERTIFICATES OF RECOGNITION- STUDENT RECOGNITION PROGRAM 1) ST. JOHN'S EPISCOPAL SCHOOL ELEMENTARY DIVISION- COLE TOFFER AND
ZACK SCHIMMELPFENIG
2) ST. JOHN'S EPISCOPAL SCHOOL MIDDLE DIVISION- KATEL YN CYR AND NIKO
VALASKANT JIS
2. SCHEDULE OF FUTURE EVENTS
Jennifer Cervantez, City Manager, announced the following:
2.1 NATIONAL PRESCRIPTION MEDICATION TAKE BACK DAY- SATURDAY, APRIL 30, 2022 FROM 10:00 A.M. TO 2:00P.M., LOCATED AT THE CITY HALL PARKING LOT
3. PUBLIC COMMENTS
The following individual provided an eComment to the Council on matters within the jurisdiction of the City Council:
Beth Heard, Dove Canyon resident, inquired if the City has received correspondence from the California Department of Housing and Community Development (HCD); asked if the State Auditor's recommendations impact the way the City develops and implements the City's Housing Element; could the information on the auditors controllers report effect the approval of the Housing Element. Mrs. Heard urged the City to reach out to the Orange County Council of Governments, California State Association of Counties and the League of California Cities regarding the State's pursuit to circumvent local government's key responsibilities of ensuring the health and safety of the local population; also asked the Council to support Assembly Bill 1154. 1 City of Rancho Santa Margarita
City Council Regular Meeting Minutes April 13, 2022
City Manager Cervantez provided information related to the Housing Element Update. City Manager r - Cervantez noted that the City received a letter from HCD on Monday, April 11, 2022. City Manager Cervantez confirmed that HCD did not certify the Housing Element. The City is currently reviewing the letter and discussing the findings with the City's Consultant on how to address their concerns.
The following individual addressed the Council on matters within the jurisdiction of the City Council:
Jay Jantz, City of Rancho Santa Margarita resident, expressed his frustration with the increased recycling costs and inquired why the increase was allowed and if the costs were final.
4. CONSENT CALENDAR
Council Member Gamble moved, seconded by Council Member McGirr to approve the Consent Calendar (Item Nos. 4.1 through 4.11 ).
The motion was approved by the following vote:
AYES: Council Members Gamble, McGirr, Mayor Pro Tempore Holloway, Mayor Figueroa (4} NOES: None (0)
ABSTAIN: None (0)
ABSENT: Council Member Beall (1)
4.1 WAIVE READING IN FULL OF ALL ORDINANCES ON THE AGENDA Waived reading in full of all ordinances on the agenda and declared that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.
4.2 APPROVAL OF PROCLAMATION AND CERTIFICATES OF RECOGNITION Approved the following:
1) Proclamation - Department of Motor Vehicles, Donate Life California Month, April 2022; and
2) Certificates of Recognition - Student Recognition Program:
a) St. John's Episcopal School Elementary Division - Cole Toffer and Zack Schimmelpfenig;
b) St. John's Episcopal School Middle Division- Katelyn Cyr and Niko Valaskantjis.
4.3 APPROVAL OF MINUTES
Approved the March 23, 2022 City Council Regular meeting minutes.
4.4 RECORDS MANAGEMENT- APPROVAL OF RESOLUTION OF AUTHORIZATION TO
DISPOSE OF CERTAIN CITY RECORDS (ANNUAL RECORDS DESTRUCTION) Adopted Resolution No. 22-04-13-01 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA
MARGARITA, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY CLERK 2 - ---·-- - --- ---·----- --- _______ _J
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City Council Regular Meeting Minutes April 13, 2022
4.5 TO DISPOSE OF CERTAIN CITY RECORDS IN ACCORDANCE WITH THE
CITY'S RECORD RETENTION SCHEDULE
RECORDS MANAGEMENT- APPROVAL OF RESOLUTION OF AUTHORIZATION TO
DISPOSE OF CERTAIN CITY RECORDS (BUILDING PLANS DESTRUCTION) Adopted Resolution No. 22-04-13-02 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA
MARGARITA, CALIFORNIA, AUTHORIZING AND DIRECTING THE CITY CLERK
TO DISPOSE OF CERTAIN CITY RECORDS IN ACCORDANCE WITH THE
CITY'S RECORD RETENTION SCHEDULE
4.6 APPROVAL OF WARRANT REGISTERS DATED MARCH 21, 2022 THROUGH APRIL 4, 2022
Approved the warrant registers totaling $585,623.95.
4.7 STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2022/23 1) Conducted the annual review of the City's Statement of Investment Policy; and 2) Adopted Resolution No. 22-04-13-03 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA MARGARITA, CALIFORNIA, APPROVING THE FISCAL YEAR 2022/23
STATEMENT OF INVESTMENT POLICY AND DELEGATING INVESTMENT
AUTHORITY AND RESPONSIBILITY TO THE CITY TREASURER
4.8 NOTICE OF COMPLETION FOR THE FISCAL YEAR 2021/2022 ANNUAL CONCRETE
REPAIR AND PLANO TRABUCO CATCH BASIN AND SIDEWALK REPAIR PROJECT 1) Accepted the improvements for the Fiscal Year 2021/2022 Annual Concrete Repair and Plano Trabuco Catch Basin and Sidewalk Repair Project; and 2) Authorized the City Clerk to file a Notice of Completion with the County of Orange Recorder's Office within fifteen (15) calendar days, as required by Section 9204 of the California Civil Code; and
3) Authorized the retention monies to be released thirty-five (35) days after the Date of Recordation of the Notice of Completion, if all Stop Notices have been resolved and all potential claims are settled.
4.9 NOTICE OF COMPLETION FOR THE FISCAL YEAR 2021/2022 ANNUAL
RESIDENTIAL OVERLAY PROJECT
1) Accepted the improvements for the Fiscal Year 2021/2022 Annual Residential Overlay Project; and
2) Authorized the City Clerk to file a Notice of Completion with the County of Orange Recorder's Office within fifteen (15) calendar days, as required by Section 9204 of the California Civil Code; and
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City Council Regular Meeting Minutes April 13, 2022
3) Authorized the retention monies to be released thirty-five (35) days after the Date of r-- Recordation of the Notice of Completion, if all Stop Notices have been resolved and all potential claims are settled.
4.10 CITY REPRESENTATIVE REPORT FOR THE ORANGE COUNTY MOSQUITO AND
VECTOR CONTROL DISTRICT
Received and filed the report submitted by the City Council's appointed representative to the Orange County Mosquito and Vector Control District.
4.11 APPOINTMENT OF LABOR NEGOTIATOR
CITY MANAGER ANNUAL PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957.6, selected and appointed Mayor Pro Tem Holloway to serve as the City Council's designated representative for purposes of (a) facilitating the annual performance evaluation of the City Manager and (b) conducting labor negotiations with the City Manager, an unrepresented employee.
ITEMS REMOVED FROM THE CONSENT CALENDAR- None.
5. PUBLIC HEARING ITEMS - None.
6. CONTINUED ITEMS- None.
7. NEW BUSINESS
7.1 DRAFT 2022-2023 ANNUAL ACTION PLAN DETAILING THE PROPOSED USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Mayor Figueroa introduced Cheryl Kula, Development Services Director who invited Mike Linares, Community Development Block Grant (CDBG) Consultant, to provide a brief overview of the staff report.
Mayor Figueroa opened the item to City Council questions of staff.
Council Member Gamble inquired how the City assesses the housing assistance program through Habitat for Humanity; is it income limited; does the money get utilized each year or does it carryover to the following year. Council Member Gamble encouraged the City to advertise the program on the Bell Tower Regional Community Center (BTRCC) Newsletter.
Mayor Figueroa asked if there was a different approach this year in regards to reviewing the CDBG funds in relation to the pandemic.
Blaine Nelson, CDBG Planning Commissioner Representative, shared that the approach the CDBG took was not much different from previous years.
CDBG Consultant Linares noted that the City has CDBG-CV Cares Act Funding that HUD allocated in 2020. Some of the agencies, such as, Families Forward and Family Assistance Ministries, have people reaching out in regards to being impacted due to inflation.
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City Council Regular Meeting Minutes April 13, 2022
7.2 The City Council reviewed the proposed use of 2022-2023 Community Development Block Grant Funds; and provided input to staff regarding the Draft 2022-2023 Annual Action Plan.
REVIEW THE CITY'S GENERAL FUND RESERVES POLICY
Mayor Figueroa introduced City Manager Cervantez who introduced Stefanie Turner, Finance Director, both of whom presented the City's General Fund Reserves Policy.
Mayor Figueroa opened the item to City Council questions of staff.
Mayor Pro Tempore Holloway asked what the City's return on investment on the Reserve fund has been within the last 1-2 years; when was the last time the return on investment was at 5 percent; inquired if there is a way to quantify the amount of return on investment on $1.4 million; expressed his support of staff's recommendation to lower the Unfunded Accrued Liability (UAL).
Council Member McGirr inquired how the 1 0-year target was established on the General Fund Reserves Estimate PowerPoint table.
Council Member Gamble shared a five-part plan and recommendation. Council Member Gamble recommends that the City staff define infrastructure and compare and contrast them with facilities; inquire what is in each target, update the chart accordingly; once that occurs then the City Council will know how much is overfunded and in what category; then the City Council can transfer between the funds to equalize the accounts at no more than 110% at the targets; once all the targets are equalized, then the City Council can make a one-time payment to CaiPERS for the UAL; and figure out what the annual escalation is and send extra payments each year to UAL.
Mayor Figueroa inquired regarding the UAL pay-down strategy and asked if the City has an estimate of what the City can expect the future payments to be.
City Manager Cervantez clarified for members of the public that the City does not have a loan with CaiPERs and further explained the payroll and pension system.
Mayor Pro Tempore Holloway left the Council Chambers at 7:45 p.m. Mayor Pro Tempore Holloway returned to the Council Chambers at 7:46 p.m.
Mayor Figueroa concurred with Council Member Gamble regarding itemizing the categories. Mayor Figueroa inquired how difficult it would be for staff to itemize the categories.
Council Member Gamble clarified the process of categorizing the targets.
Mayor Pro Tempore Holloway asked what would happen if the Council overspends on a category; and how much different will this new process be to prepare than a regular fund budget.
Council Member Gamble made a motion for staff to bring the following information back to the City Council: the infrastructure account of $1.3 million should be defined, establish a target; or update the balance, overfunded or underfund; or decide if it will be combined with something else. Council Member Gamble made a second motion to readjust all the targets, bring it back to the Council with updated chart revealing if it is overfunded or 5 City of Rancho Santa Margarita
City Council Regular Meeting Minutes April 13, 2022
underfunded and an explanation of what is in each category; seconded by Mayor Pro Tempore Holloway.
The motion was approved by the following vote:
AYES: Council Members Gamble, McGirr, Mayor Pro Tempore Holloway, Mayor Figueroa (4)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: Council Member Beall (1)
8. PUBLIC COMMENTS - None.
9. CITY MANAGER REPORT- None.
10. MATTERS PRESENTED BY MAYOR AND COUNCIL MEMBERS
10.1 COMMITTEE ASSIGNMENT REPORTS
Received an Oral Report on the following City Council Committee Assignment:
1) ORANGE COUNTY FIRE AUTHORITY
Council Member Gamble reported she attended the Orange County Fire Authority (OCFA) meeting held on March 24, 2022. Council Member Gamble reported the OCFA discussed adding two (2) standing committees to the OCFA; one for Operations and one for Legislative and Public Affairs. Council Member Gamble reported the Board also met in Closed Session regarding three bargaining units.
10.2 COUNCIL MEMBER REPORT/COMMENT
Mayor Figueroa thanked everyone for attending the Central Park Splash Pad Grand Opening. Mayor Figueroa thanked Laura Lopez, Public Information Officer/Senior Management Analyst, for her assistance at the Splash Pad Grand Opening and thanked Brendan Dugan, Public Works Director/City Engineer, and City Manager Cervantez.
ADJOURNMENT
Mayor Figueroa adjourned the meeting in at 8:44 p.m., to the next regularly sc City Council to be held on Wednesday, April 27, 2022, at 7:00 p.m., in the Ci Cou Hall, located at 22112 El Paseo, Rancho Santa Margarita, California. 6 led meeting of the
cil Chambers, City