Citizens Oversight Committee chair Robert McKennell: Placentia needs roughly $5—$8 million per year for capital improvements; council directs staff to fund core

Citizens Oversight Committee chair Robert McKennell presented a 10-to-20-year capital improvement forecast on March 17 that estimated Placentia faces roughly $12 million in identified capital needs and will need about $5—$8 million per year, on average, to sustainably fund that work.

McKennell, who led a six-month committee effort and credited volunteers Glenn Kasterlein and Joe Rasick and multiple departments for data, said the forecast aggregates project-category needs rather than listing every discrete project. He said streets and streetscapes top the list and that the city's pavement condition index has improved to about 80 from roughly 63 eight years ago. "You need to spend about $4,500,000 to $5,000,000 a year on roads to maintain them sustainably," McKennell said.

The presentation enumerated funding sources and shortfalls: Measure M and the state SB1 gas tax cover part of street needs but leave an estimated $1.5—$2.0 million annual gap; Measure U proceeds could supply $3.6M (40%) to $4.6M (50%) toward infrastructure depending on the council's allocation decision. McKennell also recommended splitting vehicle and equipment categories between public-safety and non-public-safety fleets to improve forecasting accuracy.

Why it matters: Council members said the one-sheet forecast will help budget planning and curb what McKennell called the "whack-a-mole" approach of funding capital projects only when money is available. Council members and staff stressed that some projects (storm drains, sewers, public safety vehicles) require multi-year saving or long lead times and are difficult to finance with long-term bonds.

Council budget guidance and debate

Public works staff presented the city's FY26-27 call-for-projects and two Measure U scenarios: (1) a policy-driven 40% allocation to infrastructure (the baseline when reserves are below the 25% target) and (2) a staff-recommended one-time 50% allocation that would use roughly 10% of Measure U reserves on a one-year basis to fund additional projects. Staff said the city's Measure U receipts for FY26-27 are projected at about $9.2 million.

Deputy Public Works Director Gabe Guerrero described the top-ranked projects under the prioritization process (ranked 0—100) and provided estimated construction costs for the three highest priorities: arterial rehabilitation (Palm Drive repaving; estimated $2.2 million), residential street rehabilitation (estimated $2.3 million), and City Hall roof replacement (estimated $1,050,000). The Kevin Way storm drain replacement was estimated at $250,000. Staff said, under a 50% allocation, nine top projects could be funded; under 40% funding the city could fund seven core projects with an $800,000 surplus to apply elsewhere.

Finance consultant and oversight chair Bob McKennell advised caution but said the council may use its discretion to apply part of the reserve this year: "You're still allocating 40% of Measure U because you're below it. But the city administrator is asking you to take 10% of what would otherwise go to the reserve and put it in this year's funding," he said, describing it as a one-time, conscious decision.

Several council members warned against setting a new precedent that would reduce promised infrastructure allocations in future years. Mayor Pro Tem Jeremy Yamaguchi and others flagged the city's exposure to economic volatility and urged prudence. Council members voiced support for funding urgent projects such as the City Hall roof and the police department women's locker-room renovation, citing escalating costs if projects are delayed.

Outcome and next steps

Rather than adopt a permanent 50% allocation, council consensus directed staff to prepare the CIP using the more conservative package (projects above the red line, the 40% Measure U scenario) and bring a full CIP proposal to the formal budget hearings in May and June. Council and staff agreed that if additional revenues materialize, the council can add projects during the budget process.

Votes at a glance (recorded motions from the meeting)

- Facility rental agreement and fee waiver with Influence Church for the helicopter egg-drop at Champions Sports Park: approved (vote recorded as 3 yes, 1 recusal, 1 not voting). - Facility rental agreement with the California Celtic Festival at Kramer Memorial Park: approved (vote recorded as 3 yes, 1 recusal, 1 not voting). - FY26-27 CDBG allocation recommendation (total anticipated allocation $352,527; city expected to receive $317,285; $52,500 housing rehabilitation; $176,679 ADA/pedestrian improvements): approved (vote 4 yes, 1 not voting). - Ordinance No. 02026-03 (Crimson California Pipeline LP franchise) introduced for first reading: approved to introduce (vote 4 yes, 1 not voting). - Multiple commission and committee appointments and reappointments: approved (vote 4 yes, 1 not voting).

What to watch next: Staff will return with a formal CIP proposal as part of the proposed budget (second meeting in May) and with possible adoption in June; the council retains the ability to add projects if Measure U receipts or other revenues increase.

Sources: Council meeting presentation and public hearing record; direct quotes and vote tallies are from council proceedings on March 17, 2026.