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CITY OF RANCHO SANTA MARGARITA
CITY COUNCIL REGULAR MEETING MINUTES
June 22, 2022
The meeting was called to order at 7:01 p.m. in the Council Chambers. Present: Mayor Anne D.
Figueroa (arrived at 7:24 p.m.), Mayor Pro Tempore Jerry Holloway, Council Members L. Anthony Beall, Carol A. Gamble and Bradley J. McGirr (5). Absent: None (0). The Salute to the Flag was led by Council Member Beall.
Staff Present: Jennifer M. Cervantez, City Manager; Greg Simonian, City Attorney; Brendan Dugan, Public Works Director/City Engineer; Cheryl Kuta, Development Services Director; Stefanie Turner, Finance Director; Mihaela Kennedy, Captain; Amy Diaz, City Clerk.
1. PRESENTATIONS AND PROCLAMATIONS
Mayor Pro Tempore Holloway and Council Member Gamble presented the following:
1.1 CERTIFICATE OF RECOGNITION TO MARK McQUAID FOR HIS SERVICE ON THE
PLANNING COMMISSION
Mayor Pro Tempore Holloway announced that Agenda Item No. 1.2 will be presented to the City Council at the July 13, 2022 City Council meeting.
1.2 PRESENTATION - SANTA MARGARITA WATER DISTRICT TO PROVIDE A
DROUGHT UPDATE
2. SCHEDULE OF FUTURE EVENTS
Jennifer Cervantez, City Manager, announced the following:
2.1 INDEPENDENCE DAY- MONDAY, JULY 4, 2022- CITY HALL CLOSED
2.2 SUMMER CONCERT SERIES, LOCATED AT CENTRAL PARK FROM 6:00 P.M. TO 8:00P.M.:
SUNDAY, JULY 10, 2022- THE REFLEXX
SUNDAY, JULY 17, 2022- YACHTY BY NATURE
SUNDAY, JULY 24, 2022- THE FENIANS
SUNDAY, JULY 31, 2022- THE MIGHTY UNTOUCHABLES
SUNDAY, AUGUST 7, 2022- REDNECK RODEO
SUNDAY, AUGUST 14, 2022- 90s ROCKSHOW
SUNDAY, AUGUST 14, 2022- 90s ROCKSHOW
3. PUBLIC COMMENTS
The following individual submitted an eComment to the Council on matters within the jurisdiction of the City Council:
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Beth Heard, City of Rancho Santa Margarita resident, thanked everyone for a very informative r and successful Emergency Preparedness event.
4. CONSENT CALENDAR
Council Member Gamble moved, seconded by Council Member Beall to approve the Consent Calendar (Item Nos. 4.1 through 4.9).
The motion was approved by the following vote:
AYES: Council Members Beall, Gamble, McGirr, Mayor Pro Tempore Holloway (4) NOES: None (0)
ABSTAIN: None (0)
ABSENT: Mayor Figueroa (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 CERTIFICATE OF RECOGNITION
Approved a Certificate of Recognition to Mark McQuaid for his service on the Planning Commission.
4.3 APPROVAL OF MINUTES
Approved the June 8, 2022 City Council Regular meeting minutes.
4.4 APPROVAL OF WARRANT REGISTERS DATED JUNE 6, 2022 AND JUNE 13,2022 Approved the warrant registers totaling $421,169.11.
4.5 INVESTMENT REPORT FOR THE MONTH OF MAY 2022
Received and filed the Investment Report for the month of May 2022.
4.6 AWARD OF A PUBLIC WORKS CONSTRUCTION CONTRACT FOR THE CITY HALL &
BELL TOWER REGIONAL COMMUNITY CENTER HVAC REPLACEMENT - ARPA PROJECT TO SIMCO MECHANICAL, INC. IN THE AMOUNT OF $375,250.00 1) Approved the plans and specifications for the City Hall & Bell Tower Regional Community Center HVAC Replacement- ARPA Project; and
2) Found that the Project is categorically exempt from the California Environmental Quality Act (CEQA), as a Class 1 Existing Facilities, pursuant to CEQA Guidelines, Section 15301; and
3) Awarded a Public Works Construction Contract to the lowest responsive, responsible bidder Simco Mechanical, Inc., of Glendale, California, in the amount of $375,250.00, and reject all other bids; and
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4.7 4) Authorized the Mayor to execute the proposed Public Works Construction Contract.
APPROVAL OF PROPOSED AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH GLENN A. RICK ENGINEERING AND DEVELOPMENT CO., FOR PROFESSIONAL CIVIL ENGINEERING AND LANDSCAPE
ARCHITECTURAL DESIGN CONSULTING SERVICES RELATED TO THE ANTONIO
PARKWAY GATEWAY IMPROVEMENTS PROJECT
1) Adopted Resolution No. 22-06-22-01 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA
MARGARITA, CALIFORNIA, APPROVING THE CARRYOVER OF ANTONIO GATEWAY ENHANCEMENT FISCAL YEAR 2021-22 APPROPRIATION AND AMENDING THE FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT
PROGRAM BUDGET TO INCLUDE DESIGN EXPENDITURES FOR THE
ANTONIO PARKWAY GATEWAY ENHANCEMENTS (FISCAL YEAR 2022-23) 2) Approved proposed Amendment No. 1 to the current Professional Services Agreement with Glenn A. Rick Engineering and Development Co., to extend the term of the agreement for an additional two years through December 7, 2024, to provide for additional work and services, and to increase the total contract amount by $40,476.00 from $61,957.00 to $102,433.00 in order to provide for additional services and continued civil engineering and landscape architectural design and as-needed construction support services necessary for completion of the Antonio Parkway Gateway Improvements Project; and
3) Authorized the Mayor to execute the proposed Amendment No. 1 to the Professional Services Agreement with Glenn A. Rick Engineering and Development Co.
4.8 RESOLUTION TO ALLOCATE THE APPROPRIATE ROADWAY MAINTENANCE AND
REHABILITATION ACCOUNT (RMRA) FUNDS, IN THE ESTIMATED AMOUNT OF $1,000,000 TOWARD THE ANNUAL RESIDENTIAL OVERLAY PROJECT (ZONE 5), $590,000 TOWARD THE ARROYO VISTA PAVEMENT REHABILITATION PROJECT (AVENIDA EMPRESA TO TIJERAS CREEK GOLF COURSE) AND $549,000 TOWARD
THE ANTONIO PARKWAY/ALAS DE PAZ OVERLAY PROJECT (ANTONIO PARKWAY
FROM SANTA MARGARITA PARKWAY TO ALAS DE PAZ AND ALAS DE PAZ FROM ANTONIO PARKWAY TO PLANO TRABUCO) TO THE FISCAL YEAR 2022/23 CAPITAL
IMPROVEMENT PROGRAM
Adopted Resolution No. 22-06-22-02 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA
MARGARITA, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-2023 FUNDED 1BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
4.9 APPROVAL OF PROPOSED JANITORIAL SERVICES AGREEMENT WITH DYNAMIC BUILDING MAINTENANCE, INC. FOR CITY HALL, THE BELL TOWER REGIONAL
COMMUNITY CENTER, AND CENTRAL PARK SPLASH PAD
1) Approved the proposed Janitorial Services Agreement with Dynamic Building Maintenance, Inc. for the City Hall and Bell Tower Regional Community Center 3 City of Rancho Santa Margarita
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Buildings and Central Park Splash Pad in the total maximum not-to-exceed contract r · amount $196,274.65 for an initial three-year term; and
2) Authorized the Mayor to execute the proposed Janitorial Services Agreement with Dynamic Building Maintenance, Inc.
ITEMS REMOVED FROM THE CONSENT CALENDAR- None.
5. PUBLIC HEARING ITEMS- None.
6. CONTINUED ITEMS
6.1 REVIEW OF THE CITY'S GENERAL FUND RESERVES POLICY
Mayor Pro Tempore Holloway introduced Stefanie Turner, Finance Director, who provided a brief overview of the staff report.
Mayor Pro Tempore Holloway opened the item to City Council questions of staff.
Mayor Pro Tempore Holloway announced that Mayor Figueroa arrived at the meeting at 7:24 p.m. and that he would complete Agenda Item No. 6.1.
Council Member Beall stated that the City of Rancho Santa Margarita is a model of financial strength and security. Council Member Beall stated that his priority would be to provide the residents and businesses with the safest community, finest infrastructure, latest technology, most desirable amenities, and keeping up with neighboring communities to continue to make the City a desirable place to live. Council Member Beall suggests governing with conservative fiscal policies while maintaining a strong stable secure financial condition.
Mayor Figueroa inquired if there are other types of software that can be added for building permits. Mayor Figueroa suggested keeping up with current technology software and completing capital improvement projects (CIP).
City Manager Cervantez noted that a new Finance software would need to added in the near future.
Council Member McGirr suggested accelerating the pay down of the unfunded accrued liability (UAL) program.
Council Member Gamble suggested structural proposals for the Council to consider.
Council Member Gamble recommended inter-fund or inter-category transfers so that there is a level of funding for each category at the same percentage. Council Member Gamble would like to establish a minimum funding percentage of the reserves, suggested funding the reserves at 80 percent of the ten-year target. Council Member Gamble noted that if staff knows what the return of investment is on the pay down then the City Council can make a decision on what is preferential for the community.
Mayor Pro Tempore Holloway agrees to spending money on CIP projects and setting a number the City Council feels comfortable with, and when the reserves go beyond that number then that money goes towards the UAL.
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Council Member Beall stated that he is supportive of paying down the UAL but would like to hear the options, including a lump sum with details so that the Council can make an informed decision at that point.
Mayor Figueroa likes the idea of approaching CaiPERS Analysts about getting their recommendations on a pay down.
Mayor Pro Tempore Holloway noted he agrees with reviewing the UAL options; shared he is not comfortable with the 85% number because of the restrictions.
City Manager Cervantez inquired of the City Council if they believe that the reserves balance should grow from where it is now; and if it should grow, then by how much.
Council Member Gamble noted that the current ten-year target of $20,322,811 does not include the $94,474,085 of Infrastructure replacement value. Council Member Gamble stated that with the infrastructure category amount missing then that makes the Over/Under Target Balance amount incorrect. Council Member Gamble noted that getting the ten-year target straightened out is important so that the City Council knows where we are today.
City Manager Cervantez commented that there seems to be a desire to be protective of the city's finances and to make sure we are planning for future needs and emergencies, but also a desire to use what has been saved and what has been intended to use for community amenities, benefits and services in Ieday's dollars.
City Manager Cervantez noted that staff could run a couple of different scenarios.
Council Member Beall shared that he believes this has been a very helpful discussion especially during this time of the year and not during the budget. Council Member Beall shared that he is not comfortable with the number before the City Council this evening.
Council Member Beall is hesitant to adopt a policy at this time.
Mayor Pro Tempore Holloway believes the reserves balance should grow, but at which rate it should grow will depend on future discussions.
Mayor Figueroa does not believe the reserves balance should grow for the sake of growing. Mayor Figueroa would like to see what the estimated operating budget would be year to year and take into account inflation.
Council Member McGirr stated that the reserves have always grown as a consequence of conservative action. Council Member McGirr noted he would like to see the reserves continue to grow with conservative management and exploration as to buying down the UAL situation and still expanding the CIP availability.
Mayor Pro Tempore Holloway would like more information on the infrastructure replacement value.
The City Council received and filed.
7. NEW BUSINESS- None.
8. PUBLIC COMMENTS - None.
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9. CITY MANAGER REPORT- None.
10. MATTERS PRESENTED BY MAYOR AND COUNCIL MEMBERS
10.1 COMMITTEE ASSIGNMENT REPORTS
Received Oral Reports on the following City Council Committee Assignments:
1) FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCIES
Council Member Beall reported he attended the Foothill/Eastern Transportation Corridor Agencies (TCA) meeting held on June 9, 2022. Council Member Beall reported the TCA adopted the annual budget. Council Member Beall noted that the budget includes the first planned early pay down of bonds totaling $125 million dollars. 2) ORANGE COUNTY PUBLIC LIBRARY ADVISORY BOARD
Mayor Figueroa reported she attended the Orange County Public Library Advisory Board meeting held on June 9, 2022. Mayor Figueroa reported she attended the meeting with members of the Executive Board as well as the regular Library Advisory Board to review the outdated bylaws.
10.2 COUNCIL MEMBER REPORT/COMMENT
Council Member Gamble thanked Mayor Figueroa for her tireless work with Assembly member Laurie Davies for providing a Resolution to outgoing Planning Commissioner Mark McQuaid. Council Member Gamble thanked Mayor Figueroa for a wonderful Emergency Preparedness event.
Mayor Figueroa reported that the Emergency Preparedness meeting will be placed online.
Mayor Figueroa thanked Captain Kennedy for her assistance at the Emergency Preparedness event. Mayor Figueroa also thanked Council Member McGirr for attending the Coffee and Community event.
ADJOURNMENT
Mayor Figueroa adjourned the meeting at 9:06 p.m., to the next regularly sche eeting of the City Council to be held on Wednesday, July 13, 2022, at 7:00p.m., in the City unci! Ch mbers, City Hall, located at 22112 El Paseo, Rancho Santa Margarita, California.
PREPARED BY:
Approved: July 13, 2022
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