Agenda

City Council, Successor Agency to the
Brea Redevelopment Agency, Brea Public
Financing Authority, Brea Community
Benefit Financing Authority Agenda

Tuesday, June 6, 2023

5:30 p.m. - Closed Session
6:00 p.m. - Study Session
7:00 p.m. - General Session

Marty Simonoff, Mayor

Christine Marick, Mayor Pro Tem

Cecilia Hupp, Council Member

Blair Stewart, Council Member

Steven Vargas, Council Member

This agenda contains a brief general description of each item Council will consider. The City Clerk has on file copies of written documentation relating to each item of business on this Agenda available for public inspection. Contact the City Clerk’s Office at (714) 990-7756 or view the Agenda and related materials on the City’s website at www.cityofbrea.net. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 1 Civic Center Circle, Brea, CA during normal business hours. Such documents may also be available on the City’s website subject to staff’s ability to post documents before the meeting.

Procedures for Addressing the Council
The Council encourages interested people to address this legislative body by making a brief presentation on a public hearing item when the Mayor calls the item or address other items under Matters from the Audience. State Law prohibits the City Council from responding to or acting upon matters not listed on this agenda.

The Council encourages free expression of all points of view. To allow all persons the opportunity to speak, please keep your remarks brief. If others have already expressed your position, you may simply indicate that you agree with a previous speaker. If appropriate, a spokesperson may present the views of your entire group. Council rules prohibit clapping, booing or shouts of approval or disagreement from the audience. Please silence all cell phones and other electronic equipment while the Council is in session. Thank you.

Written comments may be submitted in advance of the meeting by emailing cityclerksgroup@cityofbrea.net. Written comments received by 3 p.m. on the day of the meeting will be provided to the Council, will be made available to the public at the meeting, and will be included in the official record of the meeting.

Special Accommodations
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (714) 990-7757. Notification 48 hours prior to the meeting will enable City staff to make reasonable arrangements to ensure accessibility. (28 CFR 35.102.35.104 ADA Title II)

Important Notice
The City of Brea shows both live broadcasts and replays of City Council Meetings on Brea Cable Channel 3 and over the Internet at www.cityofbrea.net. Your attendance at this public meeting may result in the recording and broadcast of your image and/or voice as previously described.

CLOSED SESSION

5:30 p.m. - Executive Conference Room
Level Three

CALL TO ORDER / ROLL CALL - COUNCIL

Public Comment

Closed Session may convene to consider matters of purchase / sale of real property (G. C. §54956.8), pending litigation [G.C.§54956.9(d)(1)], potential litigation [G.C. §54956.9(d)(2)(3) or (4)], liability claims (G. C. §54961) or personnel items (G.C.§54957.6). Records not available for public inspection.

Conference with City's Labor Negotiator Pursuant to Government Code §54957.6 Regarding the Brea Management Association (BMA), Brea City Employees' Association (BCEA), and Administrative, Professional Employees' Association (APEA) and Executive Managers - Bill Gallardo, Negotiator and Laura Kalty and Oliver Yee LCW Attorneys.

Conference with Legal Counsel Pursuant to Government Code §54956.9(d)(2) – Robb Block v. City of Brea, WCAB ADJ15190616 - Compromise and Release (C&R)

STUDY SESSION

6:00 p.m. - Executive Conference Room
Level Three

CALL TO ORDER / ROLL CALL - COUNCIL

Public Comment

Clarify Regular Meeting Topics

DISCUSSION ITEMS

Mayor Appointments - Second Alternate to the Finance Committee

FY 2023-25 Budget Workshop: Preview of Operating and Seven-Year Capital Improvement Program Budgets - Review and approve the proposed recommended decision packages for inclusion within the FY 2023-25 Operating Budget scheduled for public hearing adoption on June 20, 2023; Appropriate General Fund Excess Reserves to close the General Fund budget gap for FY 2024-25 as presented in the FY 2023-25 Operating Budget Workbook; and Review and receive presentation for the City's Seven-Year Capital Improvement Program Budget scheduled for public hearing adoption on June 20, 2023

REPORT

Council Member Report/Requests

GENERAL SESSION
7:00 p.m. - Council Chamber
Plaza Level

CALL TO ORDER/ ROLL CALL - COUNCIL

Pledge of Allegiance: Boy Scout Troop 707

10.

Invocation: Pastor Eddy Vera, Friends Community Church

11.

Presentation: Mayor's Youth Awards

12.

Report - Prior Study Session

13.

Community Announcements

14.

Matters from the Audience

15.

Response to Public Inquiries - Mayor / City Manager

ADMINISTRATIVE ITEM - This agenda category is for City Council consideration of a wide variety of topics related to the City's operations. Public comments regarding items in this section should be presented during "Matters from the Audience."

16.

Brea City Code Amendment to update park, trail, and recreational facility regulations - Introduce by title only and waive further reading of Ordinance No. 1240, An Ordinance of the Brea City Council amending the Brea City Code to update park, trail, and recreational facility regulations and approving a CEQA exemption determination.

CONSENT CALENDAR - The City Council/Successor Agency approves all Consent Calendar matters with one motion unless Council/Agency or Staff requests further discussion of a particular item. Items of concern regarding Consent Calendar matters should be presented during “Matters from the Audience."

CITY COUNCIL - CONSENT

17.

May 16, 2023, City Council Regular Meeting Minutes - Approved.

18.

Second Reading of Ordinance No. 1238 - Zone Change No. 2022-02 (Gaslight Square Redevelopment Project) - Staff recommends that the City Council waive full reading and adopt the Ordinance No. 1238, which is an Ordinance of the City of Brea approving Zone Change No. 2022-02 for the Gaslight Square Redevelopment Project, which would amend the Zoning designation of the Project Site and the entire Gaslight Square Center from C-P (PD) Commercial, Administrative and Professional Office Zone (Precise Development) to MU-III (Mixed-Use III).

19.

Use of Treasury Bills as Local Agency Investment Fund (LAIF) Alternative for Short-term Investments - Approve the use of Treasury Bills as a LAIF alternative for short-term investments.

20.

Outgoing Payment Log and May 12, 19 & 26, 2023 City Disbursement Registers - Receive and file.

ADMINISTRATIVE ANNOUNCEMENTS

21.

City Manager

22.

City Attorney

23.

Council Requests

COUNCIL ANNOUNCEMENTS

ADJOURNMENT


City Council Meeting		Agenda Item 7.
Meeting Date:	06/06/2023
FROM:	Bill Gallardo, City Manager

Subject:
FY 2023-25 Budget Workshop: Preview of Operating and Seven-Year Capital Improvement Program Budgets
RECOMMENDATION
Review and approve the proposed recommended decision packages for inclusion within the FY 2023-25 Operating Budget scheduled for public hearing adoption on June 20, 2023; Appropriate General Fund Excess Reserves to close the General Fund budget gap for FY 2024-25 as presented in the FY 2023-25 Operating Budget Workbook; and Review and receive presentation for the City's Seven-Year Capital Improvement Program Budget scheduled for public hearing adoption on June 20, 2023.
BACKGROUND/DISCUSSION
City staff is pleased to present for the City Council’s consideration the City’s two-year Biennial Budget covering the annual periods from July 1, 2023 through June 30, 2024 and July 1, 2024 through June 30, 2025. As part of this budget cycle, the organization is shifting from an annual budget to a biennial budget to assist the City Council and City staff focus on long term and strategic considerations as the organization adapts to changes in the economy as well as within the organization. The proposed General Fund budget including decision package requests, as summarized in this Budget Workbook, sets the financial course for the City and defines the priority of services provided to our community. It is the culmination of months of effort from City staff, City departments and City Council. The proposed budget for the coming two fiscal years anticipates continued economic growth and development, increased public safety services, increased infrastructure investments and an emphasis on employee retention and attraction. Looking at the City’s major revenue sources, the sales tax base continues to show positive growth. Sales tax revenues is the largest revenue source for the City’s General Fund and represents 40 percent of the City’s General Fund budget. Sales tax continues to respond to the economy and growth is anticipated to continue in the coming fiscal years. Property tax, which is the City’s second largest General Fund revenue source, also continues to maintain marginal growth as development continues within the City. Staff remain cautiously optimistic as we present you with the proposed FY 2023-25 budget and are closely monitoring the state of the economy as the risk of a recession continues to loom in the coming fiscal years. As more information becomes available, staff will adjust assumptions and be back to City Council at a later date. Overall, this budget workbook provides a preview of the FY 2023-24 and FY 2024-25 budgets and an opportunity for comments, input, and direction from City Council. The information presented tonight is based upon staff’s objective assumptions for both revenues and expenditures on information that is known as of June 6, 2023. The following are key points to consider while reviewing the Budget Workbook: City Mission Statement, Organizational Goals and City Council’s Top Priorities and Projects – The City’s mission statements and City Council’s top priorities and projects are provided as a reference and are the foundation for the City’s budget. Fiscal Policies Statement – The City’s Fiscal Policies Statement sets the financial framework for the City’s budget. Staff is proposing minor revisions to update policy language to reflect a biennial budget process. Staff is also proposing to provide additional language and clarification regarding the budget carryover process as part of the biennial budget process for both operating and capital improvement budgets. Below is the proposed language recommended to be incorporated in the City’s Fiscal Policies Statement: As part of the biennial budget, the City Manager shall have the authority to automatically carry over available appropriation from one fiscal year to another fiscal year for a new expenditure so long as the total appropriation per expenditure does not exceed the City Manager’s authority limit of $50,000. The City will carry over all capital project appropriation balances in the next fiscal year. General Fund Five Year Projections– The Five Year Projections represent staff’s estimate, as of June 6, 2023, of where the General Fund will be for each of the next five fiscal years. The projection serves as a tool to identify financial trends, shortfalls, and issues so that the City can proactively address them. The goal of the Five Year Projections is to assess the City's ability over the next five years to: Continue current service levels based upon the City's operational goals; Preserve the City's long-term fiscal health by aligning operating revenues and costs; and Maintain the City's general fund reserves based upon the City's fiscal policies. It is important to stress that projections beyond Fiscal Year 2024-25 are not a budget and are used to highlight the need to prioritize the allocation of City resources.The purpose of the projection is to provide an overview of the City's fiscal health based on various assumptions over the next five years and provide the City Council, departments and residents of Brea a "snapshot" of the City's financial outlook beyond this budget cycle.The Five Year Projection is intended to serve as a planning tool to bring a long-term perspective to the budget process.The assumptions used in the preparation of Five Year Projections are detailed in this section of the workbook and are categorized by revenue and expenditure assumptions. Lastly, it is important to note that any projected gains/losses to future CalPERS employer rate as a result of changes in the investment market, are amortized over a 20-year horizon with no changes for the first two years; a ramp up over the next five years, and then levels off the remaining 15 years.CalPERS rate of return fluctuates and therefore future year rates are subject to change. The current discount rate is set at 6.8% however there is no guarantee where its value will land at fiscal year-end. General Fund Five Year Projections with Decision Packages– This revised Five Year Projections includes all General Fund Decision Packages listed in the next tab. Included are one-time purchases which have been removed in future years. In addition, there are personnel related requests and other decision packages that incur on-going costs. These on-going costs have been included in future years. Decision Packages– Decision packages are department requests for new programs, personnel, and/or equipment. The decision packages are organized by fund and are not presented in any priority order. There is a total of 26 decision packages recommended to be reviewed and considered. The decision packages presented are for City Council review and feedback, as well as a preview of the needs of the upcoming two fiscal years. Decision Packages On-Hold - There is one decision package submitted by the Police Department that is recommended to be further evaluated and is pending until more information becomes available. The Police Department is currently seeking grant funding for the implementation of an Integrated Crime Center (ICC) and is awaiting grant notification. This request will be brought to the City Council for funding consideration in the coming fiscal year Fund Summaries – This section of the workbook includes the fund summaries of those funds impacted by the proposed decision packages. The fund summaries identify funding availability and includes any associated costs of the proposed decision packages. Successor Agency - The Successor Agency to the Brea Redevelopment Agency’s expenditure summary is presented in this section of the workbook. Tonight's presentation will also provide an opportunity to review the City's proposed Seven Year Capital Improvement Program Budget which is provided as Attachment B.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager Prepared by: Alicia Brenner, Budget Manager Concurrence: Kristin Griffith, Director of Administrative Services

Attachments
Attachment A - FY 2023-25 Budget Workbook
Proposed Seven Year Capital Improvement Program Budget FY 2023-24 through FY 2029-30


City Council Meeting		Agenda Item 16.
Meeting Date:	06/06/2023
FROM:	Bill Gallardo, City Manager

Subject:
An Ordinance of the Brea City Council amending the Brea City Code to update park, trail, and recreational facility regulations and approving a CEQA exemption determination
RECOMMENDATION
City Council approve the amendment to the Brea City Code to update park, trail and recreational facility regulations and a CEQA exemption determination, by Ordinance and begin first reading of the proposed Ordinance.
BACKGROUND/DISCUSSION
Over the past several months, staff has partnered with the Parks, Recreation and Human Services Commission, community stakeholders, the Public Works Department, the Police Department, and the Community Services Department, to identify applicable rules and regulations in the December 2007 Park Ordinance that require language modification. The proposed Ordinance was designed to modify current language with respect to regulations related to the use of drones, use of restrooms and washrooms, and use of tennis courts and skate parks. These regulations within the Ordinance are being established to provide rules of conduct for those visiting the parks, trails and facilities, as well as for oversight enforcement at these locations. Lastly, the CEQA exemption determination is due to the proposed changes not having the potential for causing a significant effect on the environment.
COMMISSION/COMMITTEE RECOMMENDATION
The Parks, Recreation and Human Services Commission met on May 24, 2023, and supports the Ordinance language modifications and recommends Council adoption.
FISCAL IMPACT/SUMMARY
There are several park signs that will need to be updated upon approval of this Ordinance. Staff will meet with the Parks, Recreation and Human Services Commission to have new signs approved and purchased out of the Park Development Fund (Fund 250). There is no fiscal impact to the City’s General Fund.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager Prepared by: Sean L. Matlock, Deputy Director of Community Services Concurrence: Chris Emeterio, Assistant City Manager

Attachments
Ordinance Update


City Council Meeting		Agenda Item 17.
Meeting Date:	06/06/2023
FROM:	Bill Gallardo, City Manager

Subject:
May 16, 2023 City Council Regular Meeting Minutes - Approve.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager Prepared by: Victoria Popescu, Deputy City Clerk Concurrence: Lillian Harris-Neal, City Clerk

Attachments
Draft Minutes


City Council Meeting		Agenda Item 18.
Meeting Date:	06/06/2023
FROM:	Bill Gallardo, City Manager

Subject:
Second Reading of Ordinance No. 1238 - Zone Change No. 2022-02 (Gaslight Square Redevelopment Project)
RECOMMENDATION
Staff recommends that the City Council waive full reading and adopt the Ordinance No. 1238 (Attachment A), which is an Ordinance of the City of Brea approving Zone Change No. 2022-02 for the Gaslight Square Redevelopment Project, which would amend the Zoning designation of the Project Site and the entire Gaslight Square Center from C-P (PD) Commercial, Administrative and Professional Office Zone (Precise Development) to MU-III (Mixed-Use III).
BACKGROUND/DISCUSSION
The Applicant, Dwight Manley, has submitted entitlement application request for redevelopment of the Gaslight Square commercial center. The Applicant has proposed the demolition of four commercial/office buildings totaling approximately 18,873 square feet and the construction of two new commercial buildings. The proposed buildings include a 2,000 square-foot drive-through restaurant building and a 6,000 square foot commercial building (2,400 square feet for a sit-down restaurant space and 3,600 square feet of medical or retail space). The project also proposes new landscaping within the project area and would stripe new parking stalls. The project does not include specific tenants or businesses. Approval of the following entitlements are required for the project: Environmental Impact Report (EIR): to analyze the environmental impacts resulting from construction and operation of the project, pursuant to the California Environmental Quality Act (CEQA) Guidelines. General Plan Amendment (GPA): to change the General Plan Land Use designation from Office/Financial Commercial to Mixed Use III. Zone Change (ZC): to change the zoning designation from C-P (PD) Commercial, Administrative and Professional Office (Precise Development) to MU-III (Mixed-Use III). Plan Review (PR): to allow the demolition of 18,873 square feet of commercial offices to construct two new commercial buildings totaling approximately 8,000 square feet. Conditional Use Permit (CUP): to allow a 2,000 square foot drive through restaurant use. On May 16, 2023, the City Council introduced Ordinance No. 1238 for the proposed ZC, in conjunction with adopting Resolution Nos. 2023-036 through 2023-039 certifying the EIR prepared for the Project (State Clearinghouse No. 2022060598) and approving all entitlements associated with the proposed Project. The comprehensive staff report package from the May 16, 2023 City Council meeting can be accessed from the following link: http://weblink.cityofbrea.net/WebLink/0/edoc/148721/05-16-2023%20-%20CC%20Report%2019%20-%20Gaslight.pdf (page 113 to 2,146).
COMMISSION/COMMITTEE RECOMMENDATION
On April 11, 2023, the Planning Commission, on 4-0-1 vote (Commissioner Covey recused), approved a resolution recommending City Council certification of the EIR and approval of all associated entitlements for the proposed project.
FISCAL IMPACT/SUMMARY
There is no request for financial assistance or fee waivers associated with the Project. The Applicant would be responsible to pay for all applicable permit and development impact fees associated with construction of the Project. Therefore, the Project would not have a negative impact on the City’s General Fund.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager Prepared by: Joanne Hwang, AICP, City Planner Concurrence: Jason Killebrew, Community Development Director

Attachments
A - Ordinance No. 1238


City Council Meeting		Agenda Item 19.
Meeting Date:	06/06/2023
FROM:	Bill Gallardo, City Manager

Subject:
Use of Treasury Bills as LAIF Alternative for Short-term Investments
RECOMMENDATION
Approve the use of Treasury Bills as a LAIF alternative for short-term investments.
BACKGROUND/DISCUSSION
The City has traditionally used the Local Agency Investment Fund (LAIF) as its source for short-term investments and the City has kept sufficient monies in its checking and LAIF accounts to cover its expenditures for the next six to nine months. LAIF has served as an ideal short-term investment tool due to the accessibility of funds within 24 hours and their return on investment was traditionally competitive. However, in recent years LAIF's annual yields have declined to a point where other short-term investment options, such as Treasury Bills (T-bills), are regularly outperforming LAIF’s returns. At the April 24, 2023 Investment Advisory Committee (IAC) Meeting, Chandler Asset Management (Chandler), the City's investment portfolio manager, recommended to the IAC that the City should take advantage of the higher than normal yields for T-bills. Chandler believes the City will likely generate additional interest income by depositing more of its available funds in T-bills, rather than LAIF. T-bills are currently offering 4.45%, while the most recent LAIF yields are 2.87%. Additionally, a 3 month T-bill yielding 5.10%, while a 6 month T-bill is yielding 4.95%. T-bills are highly liquid and cash can be available to meet the City’s next business day needs. With early notification, Chandler believes the securities may be sold and monies potentially available the same day. Staff recommends to continue using LAIF with a smaller balance to maintain operational flexibility. For instance, over the past nine (9) months, the average LAIF balance has been approximately $6 million, under this scenario staff might recommend investing $4 million in T-bills and leave the remaining balance with LAIF. In this situation, a 3 month T-bill could produce an additional $22,300 in interest income (less account fees) as compared to LAIF. The reduced balance in LAIF will provide staff the flexibility to handle unexpected payment needs. Balances in each account will be monitored monthly and the use of T-bills will require departments to identify in-flows and out-flows to avoid continual cash withdrawals and deposits. Mayor Pro Tem Marick, the Chair of IAC, requested that staff look into the viability of investing in T-bills and if permissible, to bring this item to Finance Committee and the City Council as soon as possible. All three members of the Investment Advisory Committee, Ho-el Park, Dave Penn and Gary Terrazas, and City Treasurer, Denise Eby, agreed to move forward. After a careful review of the City's current Investment Policy, there are no significant concerns with utilizing T-bills. Currently, T-bills are categorized under US Treasury Obligations, where there is no limitation on investment percentages.
COMMISSION/COMMITTEE RECOMMENDATION
Finance Committee reviewed this item on May 30, 2023, and recommended for City Council approval
FISCAL IMPACT/SUMMARY
Based upon the most recent yields and a scenario of $4 million invested in a 3 Month Treasury Bill, the City would expect to accrue an additional $22,300 in annual interest income (less account fees) as compared to LAIF. The City's cash balances and yields are subject to change.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager Prepared by: Faith Madrazo, Financial Services Manager, Revenue and Monica Lo, Deputy Director of Administrative Services Concurrence: Kristin Griffith, Director of Administrative Services