ACTION MINUTES OF THE CITY COUNCIL
CITY OF VILLA PARK, CALIFORNIA
April 18, 2022
Special Meeting
SPECIAL SESSION
5:00 p.m. - City Council Chambers
CALL TO ORDER / ROLL CALL - Mayor Zimmerman called the General Session to order at 6:32 p.m.
COUNCILMEMBERS
PRESENT: Collacott, Miles, Pitts, Rossini, and Zimmerman ABSENT: None
PLEDGE OF ALLEGIANCE TO THE FLAG - The Pledge of Allegiance was led by Mayor Zimmerman.
NEW BUSINESS
1. 2022-23 First Budget Workshop Presentation. •
Mayor Zimmerman opened public comments and hearing no speakers, closed public comment.
City Manager Steve Franks advised this is the first Budget Workshop for Fiscal Year 2022-23 and noted the second will be held on May 16, 2022, with budget adoption in June.
Finance Director Jim Gorzo presented the Fiscal Year 2021-22 Year-End Projections. He advised revenue projections are $150,000 under budget while expenditures are $1.2 million under budget. He presented a brief overview of the Fiscal Year2022-23 Revenue Assumptions.
Councilmember Collacott inquired about funding from the Orange County Transportation Authority (OCTA) that the City uses to maintain the roads. City Manager Franks advised the disbursement happens in July but the City will not know if it receiving funding at this time. Finance Director Gorzo explained the City would have to contribute funds to receive the funds from OCTA.
April 18, 2022 Villa Park City Council Meeting Minutes
Councilmember Miles inquired if the Local Early Action Planning (LEAP) Grants can be used to offset the cost of the consultant. City Manager Franks clarified the LEAP grant funds will be used for that purpose.
Mayor Zimmerman inquired if the State Park Grant can only be used for the change order for Villa Park Knowles or if it can be used for other projects and maintenance. City Manager Franks advised it can only be used for construction projects and cannot be used for maintenance. He clarified it can be used for landscape.
Finance Director Gorzo reported the Fiscal Year 2022-23 Net Revenue change is a $77,000 increase over the Fiscal Year 2021-22 budget.
Councilmember Rossini inquired if the City's permit fees will be adjusted to reflect current inflation. City Manager Franks explained a fee study was conducted last year and they have been updated but do not reflect the current Consumer Price Index (CPI). He advised the study is conducted every two years.
Councilmember Pitts inquired if the City has made adjustments to fuel costs and other items due to the state of the economy. City Manager Franks advised CPI has been incorporated into the City's costs as part of expenditures.
Finance Director Gorzo presented a brief overview of the estimated financing for the Fiscal Year 2022-23. He reported that $8.3 million is available in Fiscal Year 2022-23 to cover operational costs and Capital Improvement Projects (CIP).
City Manager Franks reported the Fiscal Year 2021-22 projects that are continuing are Villa Park Knowles, Handicap Accessibility Ramps, and the Housing Element completion.
He explained the accessibility ramps are being replaced as part of road projects but these are those the City has identified as needing replacement.
Councilmember Collacott inquired how many curbs have not been retrofitted with the ramps. City Manager Franks advised he does not have the information at hand and will provide it to the City Council.
City Manager Franks provided an overview of the City Council priorities that would be continuing. He reported the Sewer Maintenance/Pump Station Improvement Project will continue and a firm will evaluate the City's sewer system. He noted this was important information for the City because under Senate Bill (SB) 9, the City can deny a lot split if there is not sufficient sewer capacity.
Mayor Pro Tem Rossini inquired if the City has a mechanism in place to work with the Serrano Water District when homes are built or expanded. City Manager Franks explained that a Notice of Service must be received from Serrano Water District before the City can issue a Notice of Occupancy.
April 18, 2022 Villa Park City Council Meeting Minutes
Councilmember Collacott inquired if there is an additional recovery mechanism for the additional load on the City's wastewater system. City Manager Franks explained residents can be charged for the increase and the point of the study is to obtain that information.
Councilmember Collacott inquired if the City is recovering the costs if that happens today.
City Manager Franks confirmed those fees are currently being recovered now.
City Manager Franks reported the Fiscal Year 2022-23 Street Rehabilitation Project will go out to bid in June and work will begin in late summer. He advised Churchill Lane, Squires Circle, and Dodson Way are now part of the project as per the City Council's priority.
Mayor Zimmerman advised his experience with slurry seal is that it will fill in the cracks and prolongs the life of the road. He inquired if a public campaign needs to be conducted so residents understand the difference between a slurry seal and road repair. City Manager Franks explained slurry seal is a short-term fix and is not the same as repaving the street.
Councilmember Miles inquired if there is a process that determines if the street gets slurry sealed versus rehabilitated. City Manager Franks confirmed there is a process but there is a cap on funds and not every street that needs to be repaired will be repaired.
Mayor Zimmerman inquired if the process could be further broken down. City Manager Franks explained slurry seal is much cheaper than rehabilitation but it has a shorter life span. He advised he would work to break it down for the City Council.
Mayor Zimmerman requested moving forward that the City Council be provided not only the pavement condition index (PCI) but also the year the street was slurry sealed or rehabilitated when the item comes before the City Council.
Councilmember Collacott advised the City no longer has access to some of the records before 1980 due to a purging of records by a previous City Council.
Finance Director Gorzo reported it would cost $700,000 per mile to resurface the City's streets. Councilmember Collacott explained slurry seal is good to keep a road that is already well-maintained from deteriorating further but will not work for roads that are severely deteriorated.
City Manager Franks reported two of the City's vehicles were donated and need replacement. He recommends using Air Quality Management District (AQMD) funds to purchase electric vehicles and install charger stations. He noted it would take approximately one year to obtain the vehicles once the order is placed.
City Manager Franks reported the State of the City has not been pursued and has been pulled from the budget. Mayor Zimmerman noted the State of the City is a great idea but did not materialize due to the pandemic. He hopes to see it resurrected in the future.
April 18, 2022 Villa Park City Council Meeting Minutes
City Manager Franks reported there have been discussions with the Villa Park Community Foundation (VCF) to take over the administration of the Winter Wonderland. He advised that $15,000 had been earmarked for the event and noted VCF has agreed to cover $5,500 of the costs this year. He explained VCF would like to proceed with a gradual takeover of the event.
Councilmember Miles confirmed VCF would like to proceed with a gradual takeover of the event. She advised she would work with VCF during the transition.
City Manager Franks provided a brief overview of the issues within the Contracted/External Mandates. He advised the City's largest contract is with the Orange County Sheriff's Department (OCSD) at approximately $1.9 million for law enforcement and includes the same level of service. He reported the CJPIA Insurance Premium is increasing by $26,000 due to the impact of the City's settlement with the Mesa-Henderson storm drain. He reported the Homeless Shelter Operational Contribution is increasing by $7,500 but there is legal action pending. He advised there will be a $15,000 increase in the budget for Municipal Election costs.
Councilmember Collacott inquired if the City is looking into additional costs associated with getting the City's Housing Element approved. City Manager Franks advised that $83,000 was budgeted for the work needed to approve the Housing Element.
City Manager Franks advised new technology equipment would need to be purchased for any new members of the City Council including computers and cell phones.
Mayor Zimmerman reported that iPads can be purchased through any of the major providers and include upgrades every two years. He recommended City Manager Franks investigate this type of plan for City Council devices. City Manager Franks explained the device chosen is at the discretion of the individual City Councilmember as part of City Council policy. He also clarified that any personal devices used by the City Council are subject to public scrutiny.
City Manager Franks reported City salary ranges were adjusted by $35,000. He recommends 3% for the Merit Pool for City staff. He announced Finance Director Gorzo will be leaving the City this summer. He reported he has hit a stumbling block with hiring his replacement because the City does not offer health benefits. He recommends the City Council offer health benefits for this position to maintain continuity.
City Manager Franks reported CaPERS contribution rate adjustments have increased by $20,000. He advised the City is 80%-85% funded which is considered well-funded. He noted this included the City's Section 115 Trust. He reported if the City Council wanted to keep the 2022-23 Reserves at 50% funded it would need to come from another source.
Councilmember Miles inquired if the Budget Contingency could be decreased in order to get the Reserves to 50%. City Manager Franks explained that $30,000 of the funding was April 18, 2022 Villa Park City Council Meeting Minutes
already used for another purpose and would only leave the contingency with $60,000 and would not recommend going any lower.
City Manager Franks reported the City received $350,000 from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. He reported the City submitted a claim for $35,000 to Federal Emergency Management Agency (FEMA) but was denied. He advised the City received $1.385 million in American Rescue Plan Act (ARPA) funds. He noted the first installment was received in June 2021 with the next installment anticipated for June 2022. He explained the money must be spent by 2024. He advised ARPA funds require extensive auditing and tracking and will be used to pay OCSD since they already audit and bill the City for their services. He noted that would help free up General Fund monies. He provided a brief overview of the recommended spending plan. He advised staff will return to the City Council to finalize a spending plan. He clarified the City Council has the flexibility to spend the funds over the next several years.
Councilmember Miles requested receiving a list of the Street Rehabilitation recommendations that assumes $2.6 million for the project. City Manager Franks reported the list assuming $1.6 million was available and already approved. He confirmed he could put together a new list for those streets that would be above and beyond the $1.6 million Councilmember Collacott recommended using some of this funding for the ADA ramps that need to be replaced. City Manager Franks advised that would be at the direction of the City Council.
Mayor Pro Tem Rossini recommended increasing the Merit Pool from 3% to 4% and potentially up to 5%. He advised it will help the City remain competitive with other cities and help take care of City employees. City Manager Franks advised the percentage would be at the direction of the City Council.
Mayor Pro Tem Rossini expressed support for using some of the funding for ADA ramps.
He noted the City Council makes decisions conservatively and expressed trust that the current dais will make good decisions for the City.
City Manager Franks reported staff will come back in the future as a separate item and the City Council can determine how to spend the funds.
Councilmember Miles concurred with Mayor Pro Tem Rossini's comment regarding the City Council operating conservatively. She believes it will be best to have this City Council plan for the future.
Mayor Zimmerman recommended increasing the Street Rehabilitation budget annually to help the City get better roads longer.
City Manager Franks reported the forecasts are calling for a recession. He recommends holding the Street Rehabilitation funds in the event of a recession.
April 18, 2022 Villa Park City Council Meeting Minutes
Mayor Pro Tem Rossini recommended the City take this opportunity to get caught up on Street Rehabilitation Project. He noted it also rewards those who have paid their property taxes.
Councilmember Miles inquired how much the ADA ramps would cost. City Manager Franks reported the City has consistently budgeted $25,000 per year for the ramps. He advised there is also an opportunity to use AQMD funds for that purpose in some instances. He recommends staff come back to the City Council on the ARPA funds and allow staff to move forward with the transfers. He explained this will allow the City Council to plan how to use those funds. He noted the public could also be provided an opportunity to provide feedback.
Councilmember Miles recommended staff come up with a ballpark for the ADA ramps.
City Manager Franks announced the next workshop will be Monday, May 16, 2022, at 5:00 p.m. with budget adoption on June 28, 2022, at 6:30 p.m. He advised the PowerPoint presentation is available on the City's website for public review.
Mayor Zimmerman thanked City staff for their work on the budget.
City Manager Franks hopes to have the air conditioner fixed in the City Council chamber at the next City Council meeting.
ADJOURNMENT
The meeting was adjourned at 6:21 p.m. to the next regular Council meeting to be held whether in person or via teleconference on Tuesday, April 26, 2022.
Chad Zimmerman, Mayor
City of Villa Park
City of Villa Park
Note: The above minutes are a summary of actions. A DVD recording of this meeting additionally serves as an official record and is available upon request from City Hall.