Orange City Council

Summary

This agenda item requests the City Council to waive the full reading of all ordinances listed on the agenda. State law requires ordinances to be read in full either at introduction or passage, unless a majority of the Council votes to waive this requirement and approve reading by title only. This is a procedural step to streamline meetings.

Citizen Impact

This is a procedural matter that does not directly impact residents; it only affects how council meetings are conducted.

Confidence

high

Summary

The City Council is considering an agreement with AGA Engineers, Inc. for traffic engineering services to review and potentially reestablish speed limits across the city. This initiative is prompted by California Assembly Bill 43 (AB 43), which grants local authorities more flexibility in setting speed limits. The project involves conducting engineering and traffic surveys (E&TS) for approximately 186 roadway segments to validate existing speed limits or recommend changes. This process will consider factors such as traffic speeds, roadway conditions, and the new provisions under AB 43, which may allow for further speed reductions, designation of safety corridors, and extended validity periods for surveys (up to 14 years). The total cost for these services, including a contingency and an optional task for sign change sketches, is $150,000.

Citizen Impact

This agreement could lead to changes in posted speed limits on city streets, potentially resulting in lower speeds in some areas. Residents may experience improved traffic safety, but the process also involves a significant expenditure of public funds for the engineering study.

Confidence

high

Summary

The City Council is considering an Attorney Services Agreement with Bordin Semmer, LLP to provide legal defense for the City in the case of Ayoleone Amani Bufkin, et al. v. Vista Del Rio Housing Partners LP, et al. The agreement is for an amount not to exceed $350,000. This litigation stems from a vehicle collision on May 1, 2023, where a vehicle allegedly entered the Vista Del Rio Apartment complex parking lot at high speed, colliding with an apartment and causing significant injuries to the plaintiffs. The plaintiffs allege a dangerous condition of public property due to inadequate signage and traffic control. The City has a self-insured retention of $350,000, after which its insurance with the California Insurance Pool Authority will cover additional costs. The City Attorney's office is contracting outside counsel due to the case's complexity and the extensive damages claimed, which include millions of dollars in alleged losses and medical expenses for the plaintiffs.

Citizen Impact

This agreement represents the City's commitment to defending itself in a significant personal injury lawsuit that could potentially result in substantial financial liability for the city, impacting future budgets and services if a large settlement or judgment is awarded.

Confidence

high

Summary

This item approves a First Amendment to the Professional Services Agreement with MNS Engineers, Inc. The amendment modifies the original agreement (Agreement No. 7727.A, dated August 12, 2025) to update the scope of services and increase compensation. The total not-to-exceed compensation is increased by $40,000, bringing the total to $70,000. The services provided by MNS Engineers, Inc. relate to administration support for the Community Development Block Grant (CDBG), Home Investment Partnership Act Program (HOME), and Housing Set-Aside programs. The original agreement was for $30,000, and this amendment adds $40,000 for continued support, including project close-outs, CAPER reports, environmental reviews, staff support, and technical assistance for housing developments.

Citizen Impact

This amendment allows the city to continue receiving expert support for federal housing and community development grants. This ensures proper administration and compliance with HUD regulations, which indirectly benefits residents by helping to secure and effectively utilize funds for housing and community uplift programs.

Confidence

high

Summary

The City Council is asked to authorize an increase of $85,000 to an existing purchase order with Ferguson Waterworks. This additional funding is for the annual maintenance subscription of the Neptune 360 Data Management Platform, which enhances the capabilities of the city's remote read water meters. Neptune meters are the city's standard, and the 360 platform improves data accuracy, speed, and allows for the identification of potential leaks and consumption issues. This increase brings the total purchase order amount to $785,000. The expense is funded through the Water operating budget.

Citizen Impact

This action ensures the continued accuracy and efficiency of the city's water meter system, potentially leading to earlier detection of water leaks and more precise billing for residents.

Confidence

high

Summary

This item approves Resolution No. 11657, which ratifies a Side Letter Agreement between the City of Orange and the City of Orange Police Association. The agreement, effective retroactively from January 1, 2021, through June 30, 2026, modifies the 'Holidays' provision within the existing Memorandum of Understanding (MOU).

Key Changes to Holiday Pay:

• All employees in the Association (sworn and non-sworn) will receive 105 hours of holiday pay annually.
• New employees receive prorated holiday pay based on their hire date.
• Sworn PEPRA CalPERS Members: Holiday pay can be taken as time off or cashed out within the calendar year. Effective January 1, 2026, it will be paid in bi-weekly installments and reported as pensionable compensation to CalPERS.
• Sworn Classic CalPERS Members: Holiday pay can be taken as time off or cashed out within the calendar year. It is reported to CalPERS as special compensation.
• Non-sworn PEPRA CalPERS Members: Holiday pay can be taken as time off or cashed out within the calendar year. It is not reported to CalPERS as special compensation.
• Non-sworn Classic CalPERS Members: Holiday pay can be taken as time off or cashed out within the calendar year. It is reported to CalPERS as special compensation.

The modification is necessary to comply with California Public Employees' Retirement Law (PERL) and CalPERS regulations, ensuring proper reporting of compensation for retirement purposes. The agreement covers the period from January 1, 2021, to June 30, 2026.

Citizen Impact

This agreement primarily addresses compliance with CalPERS regulations regarding how holiday pay is administered and reported for retirement benefits for police association members. While it retroactively adjusts language, the direct fiscal impact on residents is minimal, as it clarifies existing benefit structures rather than introducing new costs.

Confidence

high

Summary

This report details the unaudited actuals for the Fiscal Year 2024-2025 General Fund. The City's adopted budget for FY25 was $153.7 million in revenue and $159.7 million in expenditures. The General Fund closed FY25 with total revenues of approximately $158.7 million and expenditures of over $159.4 million, resulting in a deficit of nearly $700,000. The ending fund balance was $28.5 million, with $26.4 million designated as a catastrophic reserve. A significant change this year was the consolidation of four Internal Service Funds (ISFs) into the General Fund to improve transparency and address ongoing deficits, which accounted for an $8.4 million increase in Internal Service Revenues and a $9.6 million decrease in Internal Service Costs compared to FY24. The report also requests approval for $14,746,733 in purchase order carryover requests and $4,312,319.49 in continuing appropriations for all funds.

Citizen Impact

While the General Fund experienced a small operating deficit due to accounting changes, the city's overall financial health remains stable with a significant catastrophic reserve. Residents should note that carryover requests ensure ongoing projects and commitments are funded, and the consolidation of ISFs aims for greater transparency in how city funds are managed.

Confidence

high

Summary

The City Council is considering two agreements with the County of Orange related to properties along the Santa Ana River Trail.

1. OC Riverwalk Project (Katella Avenue Property): An option agreement for a 7.3-acre parcel. This property is crucial for the City's participation in the multi-jurisdictional OC Riverwalk project, which aims to enhance recreation, active transportation, and habitat restoration along the river corridor. The option agreement has a 36-month term, during which the City will work to secure funding (estimated at $1.5 million for design work from the California Coastal Conservancy) and obtain necessary approvals before exercising a lease.

2. Rampart St. Park Project: A lease agreement for approximately 0.9 acres. This property is planned as a passive park with amenities like a walking path, seating, landscaping, and a dog park amenity. The lease is for 30 years, with no rent, but requires a $10,000 administrative fee to the County (which the City will request to be waived). The City will be responsible for all improvements and maintenance, subject to County approval. The estimated cost for this park project is approximately $1.5 million.

An appropriation of $10,000 from Developer Impact Fees - Park is requested to cover the administration of these agreements, to be paid only if the administrative fee waiver is delayed.

Citizen Impact

These agreements pave the way for new park and recreational facilities along the Santa Ana River, including the OC Riverwalk and a passive park with a dog amenity. Residents will benefit from enhanced public spaces and active transportation options, though the Rampart St. Park project has an initial administrative cost of $10,000 funded by park impact fees.

Confidence

high

Summary

The City Council is considering approving a three-year Subscription and Services Agreement with Granicus, LLC, a company that provides various software solutions integral to the City's operations. This new agreement consolidates most of the City's existing Granicus software solutions, including platforms for agenda management, public records, citizen engagement, and digital communications, into a single contract. The agreement will run until November 2028. Notably, the Short-Term Rental (STR) administration software, previously provided by Granicus, will be transitioned to a new provider, Hinderliter, De Llamas & Associates (HdL), after the first year of this agreement (November 2026). However, other STR-related software for code enforcement purposes will continue with Granicus through the full three-year term. The total cost for this three-year agreement is $473,233.42, with annual installments of $147,365.35 for Year 1, $155,175.27 for Year 2, and $170,692.80 for Year 3. Staff recommends approval due to the embedded nature of Granicus's software in daily workflows and existing staff expertise, which would make transitioning to a new provider costly and time-consuming.

Citizen Impact

Residents will continue to benefit from Granicus's platforms for accessing public information, submitting comments on agenda items, and engaging with the city. The transition of Short-Term Rental administration services to a new provider after one year may lead to changes in how STR hosts interact with the city for tax collection and registration.

Confidence

high

Summary

The City Council is set to approve an Energy and Performance Contract with Willdan Energy Solutions (WES) to conduct an Infrastructure Investment Grade Audit (IGA) of City facilities. This IGA, costing $70,000, will identify and finalize designs for energy and water efficiency upgrades. This fee is only due if the City decides not to move forward with any proposed projects; otherwise, it will be rolled into the project financing.

This contract represents the second step in a four-step process, following a no-cost preliminary engineering analysis already completed by WES. The IGA is expected to be completed within 3-4 months (by May-June 2026) and will evaluate projects such as:

• HVAC Replacement and Retrofit
• Lighting upgrades
• Solar installations
• Electrical vehicle charging stations
• Advanced water meter upgrades

WES, an experienced Energy Services Company (ESCO) with 42 years of service to the City of Orange, will provide turnkey implementation and guaranteed savings for approved projects, ensuring no upfront capital investment from the City, as authorized by California Government Code Section 4217.10.

Citizen Impact

This contract initiates a process to modernize city facilities and water infrastructure (including ~22,000 water meters) without requiring upfront taxpayer funds. Residents can expect improved comfort and safety in public buildings, reduced water loss, and long-term operational cost savings for the city, potentially supported by community programs for clean energy skills development.

Confidence

high

Summary

The City Council is recommended to approve a "Celebration in the Park" event on July 3, 2026, at Hart Park to commemorate the USA250 initiative (250th anniversary of the Declaration of Independence). This free, family-friendly event will leverage existing park amenities and collaborate with local non-profit organizations. It is envisioned to include live music, a patriotic ceremony, and recreational activities like swimming and pickleball. The event aims to foster community connection and fiscal responsibility, avoiding the high costs associated with a large-scale ticketed event and fireworks. A fundraising subcommittee aims to secure approximately $35,000 in sponsorship funding to fully support the event.

Citizen Impact

Residents can enjoy a free, family-friendly celebration at Hart Park on July 3, 2026, with access to park amenities and community activities. The event is funded through sponsorships, meaning no direct cost to taxpayers.

Confidence

high

Summary

This report provides an update on the City of Orange's investment portfolio for October, November, and December 2025 (Q2 FY26). As of December 31, 2025, the City's total investment portfolio had a book value of nearly $160 million ($159,899,724). Of this, 58% ($92.8 million) was managed by Chandler Asset Management, and the remaining 42% ($67.1 million) was managed by City staff, including investments in the Local Agency Investment Fund (LAIF) and Wells Fargo operating accounts. The portfolio remains in full compliance with city and state regulations.

The Chandler-managed portion of the portfolio outperformed its benchmark over 1, 2, and 3 years, and since inception. For the 12-month period ending December 31, 2025, the City's portfolio achieved a 5.84% total rate of return, slightly exceeding the benchmark's 5.73%. Key shifts in asset allocation for the Chandler-managed portfolio included an increase in US Treasury holdings to 41.01% (from 35.76%) and decreases in Corporate notes to 25.47% (from 27.33%) and Agency securities to 14.05% (from 19.72%).

The economic update highlighted the Federal Reserve's third consecutive 25-basis-point rate cut in 2025, setting the target range at 3.50%–3.75%, and the halting of its balance sheet runoff. The US Treasury yield curve steepened, with the 10-year yield at 4.17%. Job growth was weaker than expected, and inflation (CPI at 2.7% YOY, PCE at 2.8% YOY) remained moderately above the Fed's target. Wells Fargo dividends for the quarter totaled $138,216, and the City's total cash increased by approximately $15.5 million, largely due to annual property tax disbursements.

Citizen Impact

The City's investment portfolio is performing well and is managed responsibly, exceeding benchmarks and complying with regulations. This effective management of public funds helps ensure fiscal stability and supports the City's ability to fund essential services without direct impact on taxes or fees. Dividends from Wells Fargo accounts also contribute to city revenues.

Confidence

high