03-25-2014 Council Minutes Adj RegularAPPROVED BY THE CITY COUNCIL ON MAY 13, 2014
CITY COUNCIL MINUTES
OF AN ADJOURNED SPECIAL MEETING
ORANGE, CALIFORNIA
March 25, 2014
The City Council of the City of Orange, California, convened an Adjourned Special Meeting at
5:00 p.m. on March 25, 2014, in the Weimer Room, 300 E. Chapman Avenue, Orange,
California.
5:00 P.M.
SPECIAL MEETING
1. OPENING
1.1 INVOCATION
Given by Richard Jacobs, Finance Director
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Mark A. Murphy
1.3 ROLL CALL
PRESENT — Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT — None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS - None
2. PUBLIC COMMENTS - None
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CITY COUNCIL MINUTES
3. CONSENT CALENDAR
GRANTS
March 25, 2014
3.1 Emergency Management Performance Grant (EMPG): Emergency Preparedness
Fund Allocation.
ACTION: 1) Accepted into the City's revenue budget a $21,542.00 grant from the
Orange County Sheriff's Department Emergency Management Bureau, into revenue
Account No. 100.3021.45495.30062 (EMPG Grant 2013); and 2) Authorized the
appropriation of $21,542.00 into expenditure Account No. 100.3021.50221.30062
(EMPG Grant 2013).
RESOLUTIONS
3.2 RESOLUTION NO. 10762
A Resolution of the City Council of the City of Orange Approving the Memorandum of
Understanding Between the City of Orange and the Orange Maintenance and Crafts
Employees Association (OMCEA) Concerning Wages, Hours, and Other Conditions of
Employment Effective July 1, 2013 through and including June 30, 2015 and Repealing
Resolution No. 10691 and Amendments Thereto for Said Employees.
ACTION: Approved.
3.3 RESOLUTION NO. 10775
A Resolution of the City Council of the City of Orange Establishing a Letter of
Understanding between the City of Orange and the Orange Fire Management Association
Effective July 1, 2013 through June 30, 2015.
ACTION: Approved the resolution and authorized staff to make the necessary budget
adjustments and /or appropriations to the departments' salary and benefit accounts to fund
the increased costs of the contract.
MOTION - Whitaker
SECOND - Murphy
AYES - Alvarez, Whitaker, Smith, Murphy, Bilodeau
All items on the Consent Calendar were approved as recommended.
END OF CONSENT CALENDAR
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CITY COUNCIL MINUTES March 25, 2014
4. REPORTS FROM MAYOR SMITH — None
5. REPORTS FROM COUNCILMEMBERS - None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
7. ADMINISTRATIVE REPORTS - None
8. REPORTS FROM CITY MANAGER
8.1 Update on the Proposed FY 2014 -15 Budget and Capital Improvement Plan.
Rick Otto, Assistant City Manager, presented the staff report. The report includes: A status of the
current fiscal year budget, a look at the proposed FY 14 -15 budget, and a review of the seven
year capital improvement program.
Mr. Otto stated the current fiscal year's revenues are estimated at $93.0 million which is a 3.1
percent increase over budgeted revenues. General Fund expenditures are estimated at $91.5
million. The estimated ending fund balance will be $9.0 million.
He added that for FY 14 -15 the General Fund revenue estimate is $95.1 million, an increase of
2.2 percent, over the current fiscal year revenue. FY 14 -15 expenditures are estimated at $95.0
million. The expenditure projection is an early estimate and is still being refined. The estimate
assumes that the City will continue to maintain frozen positions and maintain a status quo for
departmental expenditures. Increases to FY 14 -15 expenditures will come from labor
agreements, impacts from the dissolution of the Redevelopment Agency, sales tax sharing
agreements, and increases in PERS costs.
Frank Sun, Deputy Director Public Works, presented an update on the Capital Improvement
Program. There are 147 projects in the seven year planning period. Funding comes from 35
different funding sources including Gas Tax, Measure M, Developer Impact Fees, Water Capital
Funds, Grants, and CDBG Funds. A few of the program projects are: Installation of outdoor
exercise equipment at Grijalva Park, replacement of tot lots at Handy Park, and installation of a
shade sail at Belmont Park. The plan also commits $6.0 million to the Pavement Management
Program and the completion of the design for the Metrolink Parking Structure.
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CITY COUNCIL MINUTES March 25, 2014
8. REPORTS FROM CITY MANAGER (Continued)
Councilmember Bilodeau requested staff look at upgrading the medians around town. He asked
for additional landscaping around town and for lighting to be added to the undercrossing at Taft
Avenue and the 55 freeway. Mayor Smith agreed with the need for lighting and the additional
landscaping and medians.
Councilmember Bilodeau asked how carryovers impacted the budget? Mr. Otto explained that
due to large projects taking multiple years to complete, the money is spent across the years and
at uneven amounts. Councilmember Bilodeau asked about how PERS increases, and how
potential changes in employee contributions, will impact the budget. Mr. Otto explained the City
is monitoring the State for any changes and that increases to employee contributions will have to
be a negotiated change. Councilmember Bilodeau mentioned that the proposed freeway
interchange at Meats Avenue and the 55 freeway will generate new traffic to the Village at
Orange and help increase revenues.
Mayor pro tem Whitaker asked what the City's contribution to the CIP budget will be? Mr. Otto
responded that the FY 15 amount will be $30 million.
Councilmember Murphy requested a succession plan for City staff. He indicated the internal
candidates have often been more successful. He asks the Police Department to restore the third
Captain position. He indicated that staff has been stretched to the breaking point and the City
needs to start filling open positions slowly. He asked staff to look outside the box for additional
revenue sources.
Councilmember Alvarez suggested the City investigate using the Yorba Park site as a
development opportunity. He also mentioned that the school board has properties for sale in
Orange.
Mayor Smith also indicated a desire to see a succession plan for City staff and the third Captain
position for PD restored. She stated her desire to make emergency preparedness a higher priority
and add a CERT program. She asked whether the backup generator for City Hall works. City
Manager Sibley responded that, yes, the generator was recently tested and is in working order.
Mayor Smith asked when will the City be "out of the woods" in relation to the budget? Mr.
Sibley explained in order to return to full fiscal health, revenues will need to increase so that all
positions are funded, future PERS costs are funded, and all the City funds are fully funded.
9. LEGAL AFFAIRS — None
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CITY COUNCIL MINUTES March 25, 2014
10. ADJOURNMENT — The City Council adjourned at 6:20 p.m.
The next Regular City Council Meeting will be held on Tuesday April 08, 2014, at 6:00 p.m. in
the Council Chambers with Closed Session beginning at 5:00 p.m., if necessary.
Declaration of Chief Clerk, Robert Zornado, declaring posting of the City Council Agenda of a
Budget Study Session on March 25, 2014 at Orange Civic Center kiosk, Police Facility at 1107
North Batavia, and Orange Public Library at 407 N. Chapman; all of said locations being in
the City of Orange and freely accessible to members of the public at least 72 hours before
commencement of said Study Session.
i
R ERT ORNADO
HIEF CLERK
TERESA E. SMITH
lu •
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