CITY OF RANCHO SANTA MARGARITA
CITY COUNCIL REGULAR MEETING MINUTES
May 24, 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 Council Member McGirr.
Staff Present: Jennifer M. Cervantez, City Manager; Gregory Simonian, City Attorney; Cheryl Kuta, Assistant City Manager/Development Services Director; Stefanie Turner, Finance Director; Brendan Dugan, Public Works Director/City Engineer; Mihaela Kennedy, Captain; Amy Diaz, City Clerk.
1. SCHEDULE OF FUTURE EVENTS
Jennifer Cervantez, City Manager, announced the following:
1.1 MEMORIAL DAY HOLIDAY, MONDAY, MAY 29,2023- CITY HALL CLOSED
1.2 FIRE SAFETY & PREPAREDNESS COMMUNITY MEETING - TUESDAY, JUNE 6, 2023, FROM 6:30-8:00 P.M., LOCATED AT THE BELL TOWER REGIONAL
COMMUNITY CENTER
1.3 FLAG DAY- WEDNESDAY, JUNE 14, 2023, AT 7:40 P.M., LOCATED AT THE CIVIC PLAZA
2. PRESENTATIONS AND PROCLAMATIONS
Mayor Holloway announced the RSM Chamber of Commerce was unable to attend the Council meeting due to an event held the same evening.
2.1 RSM CHAMBER OF COMMERCE- SCHEDULE OF FUTURE EVENTS AND REPORT Mayor Holloway and Mayor Pro Tempore Gamble presented the following:
2.2 CERTIFICATES OF RECOGNITION- STUDENT RECOGNITION PROGRAM 1) MELINDA HEIGHTS ELEMENTARY SCHOOL- AVA ROBERTS AND BENNETT RUDGE
2) ROBINSON ELEMENTARY SCHOOL- SEVILLA CUENCA AND ADDISON TAYLOR
2.3 CERTIFICATES OF RECOGNITION- SANTA MARGARITA CATHOLIC HIGH SCHOOL
GIRLS LACROSSE TEAM, TRINITY LEAGUE CHAMPIONS
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3. PUBLIC COMMENTS
The following individuals submitted eComments to the Council on matters within the jurisdiction of the City Council:
Kevin Shaw, Dove Canyon resident, noted that on behalf of the RSM Voice Group, he thanked the City Council and supporting staff for their outstanding performance and hard work in keeping them safe and content.
Nina Mehrnouche, City of Rancho Santa Margarita resident, expressed that the City needs to fly the pride flag during the month of June.
Chris Mclaughlin, City of Rancho Santa Margarita resident, expressed his support flying a rainbow flag at City Hall during the month of June.
Amy Mendelson, City of Rancho Santa Margarita resident, asked the City to fly the pride flag during the month of June.
Chris Mclaughlin, City of Rancho Santa Margarita resident, noted that the May 10, 2023 Special Meeting minutes are light and suggested they include more detail relating to the budget items discussed.
The following individuals addressed the Council on matters within the jurisdiction of the City Council:
Ethan Murray, District 38 Representative for Senator Catherine Blakespear, noted he is assigned to the City of Rancho Santa Margarita and provided a Legislative Update to the City Council.
Soheyla Torabi 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.
Anastasia Surch, City of Rancho Santa Margarita resident, asked the City to fly the pride flag during the month of June, and asked Council Member McGirr to delete a tweet made on Twitter.
Pezhmun Ghiass, City of Irvine 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.
Tannaz, City of Irvine 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; and to write a letter to Senator Feinstein and Senator Padilla to introduce Bill 589, The MAHSA Act.
Benjamin Gelgart, City of San Diego resident, spoke regarding the Habad within the City, 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.
Chris Mclaughlin, City of Rancho Santa Margarita resident, followed up on his eComment expressing his support flying a rainbow flag at City Hall during the month of June and shared that he does not believe a rainbow flag is a political statement.
Ali Javaheri, Human Rights Advocate, noted that he is grateful for his freedom and to be able to voice his opinion; and noted that he does not expect the Council to help people in Iran but shared that evil is brewing and asked the Council to not take it lightly. 1-
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Mona Sedaghat 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.
In response to the Iranian constituent public speakers, Council Member Beall shared that the City Council issued a letter to Congresswoman Young Kim, urging her to be supportive of the positions they have taken and the letter is available at City Hall.
4. CONSENT CALENDAR
Mayor Holloway removed Agenda Item No. 4.3 from the Consent Calendar for further discussion.
Council Member McGirr moved, seconded by Council Member Figueroa to approve the Consent Calendar (Item Nos. 4.1, 4.2 and 4.4 through 4. 7).
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) Melinda Heights Elementary School -Ava Roberts and Bennett Rudge b) Robinson Elementary School- Sevilla Cuenca and Addison Taylor 2) Santa Margarita Catholic High School Girls Lacrosse Team, Trinity League Champions.
4.4 APPROVAL OF WARRANT REGISTERS DATED MAY 8, 2023 AND MAY 15,2023 Approved the warrant registers totaling $1 ,228,714.95.
4.5 INVESTMENT REPORT FOR THE MONTH OF APRIL 2023 (Turner) Received and filed the Investment Report for the month of April 2023.
4.6 STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2023/24 1) Reviewed the City's Statement of Investment Policy; and 2) Adopted Resolution No. 23-05-24-01 entitled:
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO SANTA MARGARITA, CALIFORNIA, APPROVING THE FISCAL YEAR 2023/24
STATEMENT OF INVESTMENT POLICY AND DELEGATING INVESTMENT
AUTHORITY AND RESPONSIBILITY TO THE CITY TREASURER
4.7 PROPOSED PROFESSIONAL SERVICES AGREEMENT WITH SAGECREST PLANNING & ENVIRONMENTAL, INC. FOR ON-CALL PLANNING CONSULTING
SERVICES
1) Approved a proposed Professional Services Agreement with Sagecrest Planning & Environmental, Inc. to provide On-Call Planning Consulting Services on an on-call, asneeded basis for a three-year, five-week term in a maximum not to exceed contract amount of $84,000; and
2) Authorized the Mayor to execute the proposed Professional Services Agreement for on-call planning consulting services with Sagecrest Planning & Environmental, Inc.
ITEMS REMOVED FROM THE CONSENT CALENDAR
4.3 APPROVAL OF MINUTES
Mayor Holloway announced that the following individual submitted an eComment to the Council on matters within the jurisdiction of the City Council:
Chris Mclaughlin, City of Rancho Santa Margarita resident, noted that the May 10, 2023 Special Meeting minutes are light and suggested they include more detail relating to the budget items discussed.
Mayor Holloway moved, seconded by Mayor Pro Tempore Gamble to approve the following staff recommendations:
Approved the following:
1) May 10, 2023 City Council Special meeting minutes; and 2) May 10, 2023 City Council Regular meeting minutes; and 3) May 16, 2023 City Council Special meeting minutes.
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)
5. PUBLIC HEARING ITEMS- None.
Mayor Holloway, with the consensus of the City Council, announced the City Council would hear Agenda Item No. 7.1 first, then Agenda Item No. 6.1, and lastly Agenda Item No. 7.2. 4 --- ·--· ---
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City Council Regular Meetin Minutes May 24, 2023
7. NEW BUSINESS
7.1 REVIEW OF THE CITY OF RANCHO SANTA MARGARITA'S CALPERS UNFUNDED
ACCRUED LIABILITY
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 confirmed that the staff report noted that CaiPERS recommends 90 percent funded ratio in order to allow room to absorb positive market years and the reduction to the annual Unfunded Accrued Liability (UAL). Council Member McGirr inquired about Option 5; and what the total savings would be over five years.
Council Member Beall asked what the goal should be and what happens after year five.
City Manager Cervantez stated CaiPERS provided a ballpark goal without taking a look at the City's portfolio or circumstance; and it all depends on the market after year five.
Council Member Figueroa stated she agrees with staff's recommendation of Option 4.
Mayor Pro Tempore Gamble inquired on the amount of the City's payment this year; and how the total savings for Option 3 was calculated.
Finance Director Turner advised that CaiPERS provided a worksheet to calculate the different options provided.
City Manager Cervantez clarified the total savings amounts are calculated over a period of years.
Mayor Pro Tempore Gamble questioned the possibility of investing the money earmarked for payment to gain a better rate of return.
Finance Director Turner advised investments in the Local Agency Investment Fund (LAIF) currently have a 2.9 percent return on investment.
Mayor Pro Tempore Gamble spoke on Council Member Beall's suggestion from a previous Budget meeting, to use the additional American Rescue Plan Act (ARPA) funds earmarked for future years, this year, towards the Police Services budget, freeing up additional funds, which can be invested with the greatest rate of return.
Mayor Pro Tempore Gamble stated she prefers Option 1, which gives the City a 101.2 percent return on investment, does not hurt the City, and insulates the residents of Rancho Santa Margarita from mistakes that could potentially be made by future council members.
Mayor Pro Tempore Gamble moved Option 1.
City Manager Cervantez clarified that staff is already in the process of implementing Council Member Beall's suggestion to move ARPA funds towards the Police Services contract.
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Mayor Holloway stated council is just providing direction to staff and not voting on a '1-1 particular plan.
Mayor Holloway clarified with Finance Director Turner that unfunded liability is the same as debt.
City Manager Cervantez explained the amount of unfunded liability changes from year·to year due to numerous factors.
Mayor Holloway inquired how staff came up with their recommendation.
Council Member Beall confirmed if the recommendations provided are based on current market conditions.
Council Member Figueroa inquired if staff had any concerns making the one-time payment in terms of the City's current financial situation.
City Manager Cervantez confirmed the City has funding for any of the options suggested and one of the objectives is to prevent the unfunded liability from growing exponentially.
City Manager Cervantez clarified that the savings noted will be received over a number of years.
Mayor Holloway inquired how often staff would be reporting to council on changes in the unfunded liability.
City Manager Cervantez advised staff could report to council as often as they would like.
Finance Director Turner clarified whatever decision the council makes is an internal one; the City is not committing any amount to CaiPERS.
Mayor Holloway opened the item to City Council comments.
Council Member Beall stated the City should never lose sight of the goal, to be reasonably well funded. Council Member Beall does not believe it is a good idea to be 1 00 percent funded due to market fluctuations; and agrees with staff's recommendation of 85 percent, and up to 90 percent funding. Council Member Beall noted funding should be done relatively quickly, but not necessarily in one year.
Council Member Beall believes it is important to use the ARPA funds in the upcoming budget, but would rather see the funds used for something more visible to the residents, such as the monument sign.
Council Member Beall agrees with approving staff's recommendation of Option 4 or 5, and suggests adopting a policy mandating future funding stay at 85 percent or 90 percent.
Council Member Figueroa reiterated her desire for Option 4, agreeing with Council Member Beall not to be 100 percent funded.
Council Member McGirr agrees with Council Member Beall's advice to keep the goal at 85 percent to 90 percent and wishes to revisit the UAL annually during budget meetings.
Council Member McGirr endorses staff's recommendation of Option 4. 6 l~
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Mayor Pro Tempore Gamble reiterated she is a proponent of Option 1.
Mayor Holloway stated he also supports Option 1.
Council Member McGirr stated he is not opposed to Option 1 and staff's recommendation is reasonable; and is open to further discussion.
Council Member Beall reminded Council how quickly the unfunded liability has grown in a short amount of time and wants the City to be in a reasonably strong position to pay its obligations.
Council Member Figueroa commended current and previous Council Members along with City staff for their diligent work ensuring the city has the money to pay the UAL.
Council Member McGirr clarified with Finance Director Turner that the City has the flexibility to make changes to payments in the future.
Mayor Holloway inquired if the amounts for years 1, 2, and 3 are more accurate than later years.
Mayor Pro Tempore Gamble stated that it appeared all agreed on funding between 85 percent to 90 percent, although she prefers 85 percent. Mayor Pro Tempore Gamble acknowledged if steps are not taken to address the UAL, it could become a problem.
Mayor Pro Tempore Gamble stated if the City was not at 131 percent of its 10 year target for reserves, she would be more conservative in her approach. Mayor Pro Tempore Gamble believes that taking advantage of the opportunity not to pay 6.8 percent for money that could be invested at 2.9 percent is compelling and the savings over 10 to 20 years will become more significant. Mayor Pro Tempore Gamble reiterated she is strongly in favor of Option 1, which gives the City 1 00 percent return on the investment unlike Option 4. Mayor Pro Tempore Gamble believes the 85 percent goal is reasonable but unattainable as evidenced by CaiPERS' performance the last two years and the change in the City's UAL.
City Manager Cervantez thanked Council for their direction and indicated there is always an opportunity in any one year to provide additional payment(s) if desired.
Council Member Beall moved, seconded by Council Member Figueroa to approve the following staff recommendations:
1) Received and filed; and
2) Provided direction for Option 4 pay down payment plan for CaiPERS UAL; and 3) Authorized staff to proceed with preparing all necessary documents and communications with CaiPERS for consideration of Council approval.
The motion was approved by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members Beall, Figueroa, McGirr (3)
Mayor Holloway, Mayor Pro Tempore Gamble (2)
None (0)
None (0)
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6. 7.
CONTINUED ITEMS
6.1 REVIEW OF THE CITY'S GENERAL FUND RESERVES POLICY AND CATEGORIES 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.
Mayor Pro Tempore Gamble noted that Attachment C had pages missing. Mayor Pro Tempore Gamble inquired if the previous reserve policy was included in red-line format.
Finance Director Turner clarified that the red-line copy was not provided due to the amount of changes to the document.
The City Council requested that the item be continued with the addition of the missing pages and a red-lined version of the policy.
NEW BUSINESS
7.2 AUTOMATED LICENSE PLATE READERS PRESENTATION AND DISCUSSION Mayor Holloway introduced Captain Mihaela Kennedy, Police Chief, who provided a staff report and presentation on Automated License Plate Readers (ALPRs).
Mayor Holloway opened the item to City Council questions of staff.
Mayor Holloway inquired with City Manager Cervantez how much direction council was being asked to give.
City Manager Cervantez advised staff has a recommendation to proceed with Flock Group Inc.
Council Member McGirr clarified that there is no speed detection or facial recognition capabilities with the ALPR system. Council Member McGirr inquired which ALPR company The Toll Roads uses and if the City should use the same company as neighboring cities to aid in apprehension. Council Member McGirr asked how many Orange County Sheriff's Department (OCSD) contract cities use ALPRs.
Mayor Pro Tempore Gamble thanked Captain Kennedy for the presentation; and inquired if the real-time operation center is complete and functioning.
Captain Kennedy introduced Dave Fontneau, Chief Information Officer, with OCSD who introduced Joe Giese, Senior Manager.
Chief Information Officer Fontneau clarified the real-time operations center is currently in an implementation phase, a temporary location with limited technology. The permanent operations center in Tustin is set to go live at the end of the year.
Mayor Pro Tempore Gamble inquired if any ALPR systems currently in use, which store information on the cloud, have had any breaches; and if integration with other security cameras is possible.
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Mayor Pro Tempore Gamble inquired on the solar powered cameras capability of working on a cloudy day. Mayor Pro Tempore Gamble inquired if there will be any additional costs to the City when the operations center is up and running. Mayor Pro Tempore Gamble asked what the proposed solution is to cover streets with more than one lane of traffic.
Mayor Pro Tempore Gamble inquired what future years' costs would be to maintain the cameras. Mayor Pro Tempore Gamble inquired how Rancho Santa Margarita Deputies receive notifications from neighboring cities ALPRs.
Mayor Holloway inquired how ALPR information is delivered to Deputies via their Mobile Date Computers (MDC).
Council Member Figueroa thanked everyone for the information provided. Council Member Figueroa inquired if there is a hardwired option for the cameras and what the cost difference is. Council Member Figueroa shared Mayor Pro Tempore Gamble's sentiment that more than 1 0 cameras may be needed; asked what the installation time frame would be. Council Member Figueroa supports staff's recommendation to use Flock Group Inc.
Council Member Beall inquired if there are any criminal or civil penalties for inappropriate access and/or use of ALPR data.
Gregory Simonian, City Attorney, shared ALPR data is a public record unless there is a specific statutory exemption.
Council Member Beall inquired who owns the cameras and how it figures into the Sheriff's Department contract.
City Manager Cervantez clarified the cameras are leased by the City.
Council Member Beall inquired if a hardwired option was available and if they are equipped with night vision.
Council Member Beall expressed his support for the project.
Mayor Holloway inquired on the ease of integration with cameras at City Hall.
Mayor Pro Tempore Gamble made two motions:
Mayor Pro Tempore Gamble moved, seconded by Council Member Beall to approve the following recommendation:
That the City of Rancho Santa Margarita explore the use of Automated License Plate Reader (ALPR) cameras.
The motion was approved by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members Beall, Figueroa, McGirr, Mayor Pro Tempore Gamble, Mayor Holloway (5)
None (0)
None (0)
None (0)
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Mayor Pro Tempore Gamble moved, seconded by Council Member McGirr to direct staff to bring back the item with the true needs of the City and estimates from Flock Group Inc. and Vigilant Solutions.
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)
8. PUBLIC COMMENTS - None.
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 Assignment:
1) FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCIES
Council Member Beall reported he attended the Foothill/Eastern Transportation Corridor Agencies (TCA) meeting held on May 11 , 2023. Council Member Beall reported that since 2019 the TCA has reduced its debt by $1.275 billion and plans to pay an additional $980,000,000 worth of bonds within the next seven years. This will save an additional $860,000,000 in interest payments, collectively reducing the TCA's debt by $3.1 billion in the next seven years .
10.2 COUNCIL MEMBER REPORT/COMMENT
Council Member Figueroa reported RSM Cares will be hosting their Memorial Day Food Drive on Saturday, May 27, 2023, from 9:00a.m. to 4:00p.m. at Pavilions.
Mayor Pro Tempore Gamble thanked staff for their hard work at the International Council of Shopping Centers (ICSC).
Mayor Holloway shared staff did a lot of work at ICSC and met with several property managers.
ADJOURNMENT
Mayor Holloway adjourned the meeting at 11 :16 p.m. , to the next regularly scheduled meeting of the City Council to be held on Wednesday, June 14, 2023, at 7:00p.m., in the City Council Chambers, City Hall, located at 22112 El Paseo, Rancho Santa Margarita, California. 10 City of Rancho Santa Margarita
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PREPARED BY:
------- Approved: June 14, 2023
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