CITY OF RANCHO SANTA MARGARITA
CITY COUNCIL REGULAR MEETING MINUTES
January 25, 2023
The meeting was called to order at 7:00 p.m. in the Council Chambers. Present: Mayor Jerry Holloway, Mayor Pro Tempore Carol A. Gamble, Council Members L. Anthony Beall, Anne D. Figueroa and Bradley J. McGirr (5). Absent: None (0). The Salute to the Flag was led by Mayor Pro Tempore Gamble.
Staff Present: Jennifer M. Cervantez, City Manager; Greg Simonian, City Attorney; Cheryl Kuta, Assistant City Manager/Development Services Director; Brendan Dugan, Public Works Director/City Engineer; Stefanie Turner, Finance Director; Mihaela Kennedy, Captain; Amy Diaz, City Clerk.
1. PRESENTATIONS AND PROCLAMATIONS
Mayor Holloway and Mayor Pro Tempore Gamble presented the following:
1.1 IRSM CHAMBER OF COMMERCE - SCHEDULE OF FUTURE EVENTS AND REPORT
1.2 CERTIFICATES OF RECOGNITION - STUDENT RECOGNITION PROGRAM 1) ST. JUNIPERO SERRA CATHOLIC SCHOOL - GREYSON BOZORGNIA AND
MCKENZIE HAKIMI
2) TIJERAS CREEK ELEMENTARY SCHOOL - MAYA NABI AND RYLAND JENTSCH Mayor Holloway, Mayor Pro Tempore Gamble and Jennifer Cervantez, City Manager, presented the following:
2022 EMPLOYEE OF THE YEAR RECOGNITION TO LISA GRECI, PERMIT
TECHNICIAN
2. SCHEDULE OF FUTURE EVENTS - None.
PUBLIC COMMENTS
The following individual provided an eComment to the Council on matters within the jurisdiction of the City Council:
Kevin Shaw, RSM Voice Group, expressed his concerns regarding mass killings and noted that the City Council and Orange County Sheriff's Department (OCSD) are the appropriate places to start a conversation about the issue and develop a set of suggestions for mitigation actions in the City.
The following individuals addressed the Council on matters within the jurisdiction of the City Council:
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Juan Gonzalez, Southern California Gas Public Affairs Manager, addressed the City Council regarding the factors contributing to higher natural gas commodity prices and shared tips on how customers can reduce their energy bills.
Henny Abraham, City of Costa Mesa resident and Iranian-American Engagement Director for the Republican Party of Orange County, asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Pezhmun : Ghiass, American-Iranian citizen, asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of Kamiar Nazem, City of Aliso Viejo resident, asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Maryam Mosallaie, City of Mission Viejo resident, asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Hedi Fahami, City of Mission Viejo resident, asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of Bayaneh Nikpour asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Benjamin Gelgart, City of San Diego resident, noted it is International Holocaust Remembrance Day and asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Dave Ghashghai asked the City Council to pass a Resolution condemning the Islamic Republic of Iran and to stand in solidarity with the Iranian constituents of the City.
Mayor Holloway noted that Congresswoman Young Kim has submitted a joint Resolution to Congress condemning the regime and the City Council is supportive of her efforts.
Bobby Cox, City of Rancho Santa Margarita resident, believes the City Council does not have any business within the affairs outside the Unites States.
Mayor Holloway recessed the City Council meeting at 8:05 p.m. for disorderly conduct by resident Bobby Mayor Holloway reconvened the City Council meeting at 8:06 p.m. in the Council Chambers.
Mitra Mosallaie shared she has visited multiple City Council meetings and commended the Rancho Santa Margarita City Council.
4. CONSENT CALENDAR
Council Member Beall moved, seconded by Council Member Figueroa to approve the Consent Calendar (Item Nos. 4.1 through 4.7).
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The motion was approved by the following vote:
AYES: Council Members Beall, Figueroa, McGirr, Mayor Pro Tempore Gamble, Mayor Holloway (5)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: None (0)
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 CERTIFICATES OF RECOGNITION
Approved the following Certificates of Recognition:
1) Student Recognition Program:
a) St. Junipero Serra Catholic School - Greyson Bozorgnia and Mckenzie Hakimi b) Tijeras Creek Elementary School - Maya Nabi and Ryland Jentsch 2) 2022 Employee of the Year Recognition to Lisa Greci, Permit Technician.
4.3 APPROVAL OF MINUTES
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Approved the January 11, 2023 City Council Regular meeting minutes.
4.4 APPROVAL OF WARRANT REGISTERS DATED JANUARY 9, 2023 AND JANUARY 17, 2023
Approved the warrant registers totaling $1,514,838.91.
4.5 INVESTMENT REPORT FOR THE MONTH OF DECEMBER 2022
Received and filed the Investment Report for the month of December 2022.
4.6 RESULTS OF FISCAL YEAR 2022 FINANCIAL STATEMENT AUDIT, SUMMARY
FINANCIAL INFORMATION, REQUIRED AUDITOR COMMUNICATIONS,
APPROPRIATIONS LIMIT REPORT, AND ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Received and filed the City's Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2022.
4.7 NOTICE OF COMPLETION FOR THE CITY HALL AND BELL TOWER REGIONAL
COMMUNITY CENTER HVAC INTERIOR CONTROLS REPLACEMENT - ARPA
PROJECT
1) Accepted the improvements for the City Hall and Bell Tower Regional Community Center HVAC Interior Controls Replacement - ARPA Project; and 3 City of Rancho Santa Margarita
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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.
ITEMS REMOVED FROM THE CONSENT CALENDAR - None.
PUBLIC HEARING ITEMS - None.
CONTINUED ITEMS
6.1 REVIEW OF THE CITY'S GENERAL FUND RESERVES POLICY AND CATEGORIES Mayor Holloway recessed the City Council meeting at 8:09 p.m.
Mayor Holloway reconvened the City Council meeting at 8:21 p.m. in the Council Chambers.
Mayor Holloway introduced Stefanie Turner, Finance Director, who provided a brief overview of the staff report.
Mayor Holloway opened the item to City Council questions of staff.
Council Member McGirr asked for clarification on page 5 of the staff report related to CaPERS anticipating the Unfunded Accrued Liability (UAL) to reduce due to the investment gains; however, is expected to then grow in the following year.
Mayor Holloway inquired what the CalPERS numbers are for Fiscal Year 2021/22; asked what the different scenarios would look like if the City made a one-time payment to the UAL.
Council Member Beall expressed his support in seeking the interest savings for the UAL and making necessary allocations on an annual basis.
Council Member Figueroa expressed interest in getting the UAL paid down and inquired how often the City Council would revisit the General Fund Balance.
Mayor Pro Tempore Gamble inquired regarding the dollar amount difference in the "Current 10-Year Target" column and the "Revised Current 10-Year Target with added Infrastructure" column on page 7 of the staff report, and noted she believes the Vehicle amount is too low. Mayor Pro Tempore Gamble noted that the Council Strategic "Percent of Reserve Balance" is set at 45.64% and does not believe it should be that high; and noted that "Technology" is set too low for the 10-year target.
Finance Director Turner clarified that the last column on page 7 of the staff report has a 2% Growth Factor on the Revised Reserves Balance.
City Manager Cervantez further explained that the target grows 2% higher each year but it is the intent to have the balances remain.
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Mayor Pro Tempore Gamble concurred with Council Member Figueroa regarding the payment plan to pay down the UAL.
City Manager Cervantez shared regarding the presentation and goals for the Reserve Balance as a 10-Year Target; stated that with respect with the UAL it will continue to grow, providing some funding for the UAL is prudent and recommends the 10-Year plan.
City Manager Cervantez stated that staff's recommendation is taking one million dollars out of the Council Strategic bucket and creating a category and put it as a UAL bucket.
Mayor Holloway had additional questions related to the pay down of the UAL and CaPERS. Mayor Holloway noted he likes the annual UAL payments but would like to see what the difference in 10-years would be with a higher yearly amount.
City Manager Cervantez clarified that staff would like to know if the Council would like to create a separate category to pay down the UAL.
Finance Director Turner inquired what scenarios the City Council would like to see regarding paying down the UAL.
Council Member McGirr is in favor of contributing $100,000 per year over the annual required UAL payment over a 10-year period and bringing it down to a projected 97%.
Mayor Pro Tempore Gamble is in favor of being funded at 85%, taking one million dollars from the Council Strategic and putting it into a separate line item for a transfer of $100,000 every year until the City achieves the 85% funding level.
Council Member Beall inquired what the City's current funding level is and expressed his support of $100,000 per year over the annual required UAL payment over a 10-year period for an 85% funding level.
Council Member Figueroa is in favor of staff's recommendation to contributing $100,000 per year over the annual required UAL payment over a 10-year period and revisiting the General Fund Balance.
Mayor Holloway inquired of different pay down scenarios and funded balances and asked if staff wants to know what level of funding they prefer.
City Manager Cervantez noted staff wants to know if the Council wants to start the process and if staff should create a UAL category within the Reserves model.
Finance Director Turner clarified that she would revise the written policy and resolution and bring it back to Council.
Mayor Pro Tempore Gamble asked staff to opine in the value of investing in CalPERS in a recessionary economy.
The City Council received and filed; and
The City Council directed staff to revise the City's General Fund Reserves Policy, as appropriate, including categorical allocations, for future Council consideration and approval.
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NEW BUSINESS
7.1 APPROVAL OF SOFTWARE LICENSE AND SUBSCRIPTION AGREEMENT WITH
CITYTECH SOLUTIONS FOR CITYTECH PERMITS AND CODE APPLICATIONS Mayor Holloway introduced Cheryl Kuta, Assistant City Manager/Development Services Director, who provided a brief overview of the staff report.
Assistant City Manager/Development Services Director Kuta noted there is a supplemental item that updates the Fiscal Impact section of the staff report. Assistant City Manager/Development Services Director Kuta stated staff is recommending that funding for the contract come from the use of the California Energy Commission Grant and General Fund rather than the American Rescue Fund Act.
Assistant City Manager/Development Services Director Kuta introduced Mark Abbott with City Tech Solutions to provide an overview of the CityTech Permits and Code Applications software.
Mayor Holloway opened the item to City Council questions of staff.
Council Member Figueroa inquired if the same information is available with the new CityTech software for both General Contractors and Homeowners; asked how questions can be asked within the program; expressed her support for the new software program.
Mayor Pro Tempore Gamble likes how the software includes modules that are applicable and appropriate for our City and is excited for the new software.
Mayor Holloway asked Assistant City Manager/Development Services Director Kuta to share why the City is waiving competitive formal bidding.
Mayor Pro Tempore Gamble made a motion, seconded by Council Member Beall to approve the following staff recommendations:
1) Waived competitive formal bidding requirements and procedures set forth in the City of Rancho Santa Margarita Municipal Code (RSMMC) Section 3.07.060 and authorize the sole source procurement with regards to approval of a Software License and Subscription Agreement with CityTech Solutions, as it is hereby found and determined, pursuant to RSMMC Section 3.07.070, that the proposed service is uniquely suited to the City's needs based on the information presented herein by City staff; and
2) Approved the proposed Software License and Subscription Agreement with CityTech Solutions for CityTech Permits and Code Applications; and 3) Authorized the City Manager to execute the Software License and Subscription Agreement with CityTech Solutions for CityTech Permits and Code Applications.
The motion was approved by the following vote:
AYES: Council Members Beall, Figueroa, McGirr, Mayor Pro Tempore Gamble, Mayor Holloway (5)
NOES: None (0)
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ABSTAIN: None (0)
ABSENT: None (0)
PUBLIC COMMENTS - None.
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 Agency (TCA) meeting held on January 12, 2023. Council Member Beall reported the TCA Board approved an Open Market Bond Buy Back program and will be receiving quarterly results on the progress of the program.
10.2 COUNCIL MEMBER REPORT/COMMENT
Council Member Beall addressed the eComment submitted by Kevin Shaw regarding mass shootings preparation. Council Member Beall asked Captain Kennedy to share how the OCSD prepares for active shooter situations.
Council Member McGirr shared that a recent analysis of the safest cities with the best qualities of life and based upon the FBI crime statistics Rancho Santa Margarita is number one. Council Member McGirr congratulated the residents, businesses and OCSD for keeping us safe.
Mayor Pro Tempore Gamble noted that one of the frequent question she gets is "How do I become a Firefighter?" Mayor Pro Tempore Gamble shared that she spent time at Fire Station No. 45 with Division Chief Cheyne Maule and Battalion Chief Levi Medina in which they shared how one becomes a Firefighter.
Mayor Holloway stated that the number one safest city is a big deal and expressed his appreciation to the OCSD Deputies.
ADJOURNMENT
Mayor Holloway adjourned the meeting at 9:51 p.m., to the next regularly scheduled meeting of the City Council to be held on Wednesday, February 8, 2023, at 7:00 p.m., in the City Council Chambers, City Hall, located at 22112 El Paseo, Rancho Santa Margarita, California elevas
JERRY HOLLOWAY, MAYOR
PREPARED BY:
umy Diay
AMY DIAZ, GUY CLERK
Approved: February 22, 2023
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