HomeMy WebLinkAboutCC Minutes 2010-06-15MINUTES
OF THE JOINT REGULAR MEETING
OF THE CITY COUNCIL, REDEVELOPMENT AGENCY AND TUSTIN PUBLIC
FINANCING AUTHORITY
June 15, 2010
CLOSED SESSION MEETING
5:30 P.M.
CALL TO ORDER -Meeting #2238 at 5:30 p.m.
ATTENDANCE
Present: Mayor/Chair Jerry Amante, Mayor Pro Tem/Chair Pro Tem John
Nielsen, and Councilmembers/Agencymembers Doug Davert, and
Jim Palmer
Absent: Mayor Pro Tem/Chair Pro Tem John Nielsen and
Councilmember/Agencymember Deborah Gavello
City Clerk: Erica Rabe, City Clerk Services Specialist
Others Present: William Huston, City Manager; and Doug Holland, City Attorney
PUBLIC INPUT -None
CLOSED SESSION ITEMS -The Brown Act permits legislative bodies to discuss certain
matters without members of the public present. The City Council finds, based on advice
from the City Attorney, that discussion in open session of the following matters will
prejudice the position of the City in existing and anticipated litigation:
A. CONFERENCE WITH LEGAL COUNSEL -EXPOSURE TO LITIGATION
[Govt. Code § 54956.9(b)] -Two Cases
B. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION [Govt.
Code § 54956.9(a)] -Three Cases
• Tustin Unified School District v. City of Tustin et al., Case No. 30-2010-
00345476, Orange County Superior Court
• City of Newport Beach and City of Tustin v. City of Irvine et al., Case No.
30-2008-00228855-CU-WM-CXC, Orange County Superior Court
• Marble Mountain Partners, LLC v. City of Tustin et al., Orange County
Superior Court Case No. 30-2008-.0011668
C. CONFERENCE WITH LEGAL COUNSEL -INITIATION OF LITIGATION [Govt.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 1 of 14
Code § 54956.9(c)j -Two Cases
RECESSED - At 5:34 p.m. City Council recessed to closed session to discuss matters
listed under Closed Session.
JOINT REGULAR CITY COUNCIL, REDEVELOPMENT AGENCY AND
TUSTIN PUBLIC FINANCING AUTHORITY
MEETING
7:00 P.M.
~~ ~~
CALL TO ORDER -Meeting #2238 at 7:01 p.m.
INVOCATION -Councilmember Palmer
PLEDGE OF ALLEGIANCE -Councilmember Davert
ROLL CALL -City Clerk Stoker
Present: Mayor/Chair Jerry Amante, Mayor Pro Tem/Chair Pro Tem John
Nielsen, and Councilmembers/Agencymembers Doug Davert, and Jim
Palmer
Absent: Councilmember/Agencymember Deborah Gavello
City Clerk: Pamela Stoker, City Clerk
Others Present: William Huston, City Manager; and Doug Holland, City Attorney
CLOSED SESSION REPORT - City Attorney Holland -The Council unanimously
approved settlements on pending cases and provided direction to the City Attorney's office
to resolve those cases:
City of Newport Beach and City of Tustin v. City of Irvine et al., Case No. 30-
2008-00228855-CU-WM-CXC, Orange County Superior Court
Marble Mountain Partners, LLC v. City of Tustin et al., Orange County
Superior Court Case No. 30-2008-.0011668
PRESENTATIONS
Mayor Amante presented certificates with Nancy Barry to the 2010 Tustin
Community Pride Student Essay and Poster Contest Winners:
Madison J. Chang Tustin Ranch Elementary Essay
Gisele Tevy Robinett Tustin Ranch Elementary Poster
Bryan Ho Nelson Elementary Essay
city council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 2 of 14
Anica Flores
Taylor Horton-Pope
Marilyn Nguyen
Alejandro Maldonade
Jessenia Sanchez
Joana Duarte
Nelson Elementary Poster
Utt Middle School Essay
Utt Middle School Essay
Utt Middle School Poster
Utt Middle School Poster
Utt Middle School Essay
ORAL COMMUNICATION /PUBLIC INPUT -
• AI Murray -Acknowledged Don Ropele and Marilyn Esposito for a successful Chili
Cook Off and thanked all staff for their efforts at the event
• Edward Chizkov -Asked staff to explain the foundation of Ordinance No. 1354
• Stephen Ignathis - Reqested police patrol at the intersection of AnaTree and
Raintree
PUBLIC HEARING ITEMS
ADOPTION OF RETAIL WATER RATES -PUBLIC HEARING RESOLUTION
N O. 10-57
Presentation by Public Works Director Doug Stack and Finance Director Pam
Arends-King
The purpose of the public hearing, under the California Constitution
("Proposition 218") is to permit the property owners to comment upon or present
objections to the proposed water rate increases. The proposed rate increases
will (1) generate the necessary revenues to meet ongoing operations and
maintenance expenses and eliminate a General Fund subsidy; (2) generate the
necessary revenues to meet ongoing operations, maintenance expenses and
debt financing for major capital projects; and meet current bond covenant
requirements; (3) expand the current rate structure from four to seven tiers; (4)
establish a capital project fee solely dedicated for non-debt financed capital
improvement projects; (5) provide for a new pass-through provision to account
for unanticipated third party charges related to the purchase of electricity and/or
imported water; and (6) establish Water Demand Reduction Stages (WDRS)
that would enable the City to comply with wholesale water use restrictions in
response to regional water shortage conditions as necessary. The WDRS was
included within the official Proposition 218 notice of Public Hearing to ensure
proper noticing and compliance. Only upon specific City Council authorization
can a WDRS be declared and put into action.
The proposed rate increases would be effective July 1, 2010 for fiscal year
2010-11 and July 1St in subsequent fiscal years. The typical residential customer
(a residential user with a 5/8 or 3 / 4 inch meter and consuming about 40 units)
would experience an increase of 17.8% in FY 2010-11, 14.13% in FY 2011-12,
6.31 % in FY 2012-13 through FY 2014-15. Additionally, the pass-through
provision is restricted to-not-exceed 7% of the annual water charges.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 3 of 14
Public hearing opening at 7:57 p.m.
Public Input -
In opposition:
• Dale Stark
• David Ash
• Douglas Chapman
• Ken Weir
• Richard Nelson
Neutral:
• Ryder Todd Smith
In opposition:
• Robert Morton
• Berklee Maughan
Public hearing closed at 9:09 p.m.
RECESSED at 9:09 p.m.
RECONVENED at 9:20 p.m.
Motion: It was moved by Mayor Amante and seconded by Councilmember
Davert to approve Resolution 10-57 approving the rate increases with the
following change: modify the proposed rates by reducing the rates in the first
two years by a total of 5% and increasing the rates in years three through five
by an .amount not-to-exceed a 1 % per year to offset but not exceed the 5%
reduction in the first two years. The Finance Director is authorized to make
such changes in the fee schedules consistent with the Council direction as
provided in this motion.
Motion carried 3-1 (Councilmember Palmer dissenting)
CONSENT CALENDAR ITEMS - It was moved by Councilmember/Agencymember Davert
and seconded by Councilmember/Agencymember Palmer to pull consent calendar items
7, 8, 9, and 12 and to approve the balance of the consent calendar items as recommended
by staff.
Motion carried 4-0
2. APPROVAL OF MINUTES -REGULAR MEETING OF THE JOINT CITY
COUNCIL AND REDEVELOPMENT AGENCY HELD ON JUNE 1, 2010
Recommendation: Approve the Action Minutes of the Regular Meeting of the
Joint City Council and Redevelopment Agency held on June 1, 2010.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 4 of 14
3. APPROVAL OF DEMANDS AND RATIFICATION OF PAYROLL
Recommendation: Approve demands in the amounts of $2,155,510.53,
$15,864.86, $474,333.55, and Payroll in the amount of $677,828.59.
4. CONSIDERATION OF CLAIM OF JACOB SOUTSO, CLAIM NO. 09-37
The Claimant sustained personal injuries and property damage as a result of an
auto vs. motorcycle accident that occurred on April 15, 2009 at the intersection
of Tustin Ranch Road and EI Camino Real. The claimant is alleging that the
City created and/or maintained a dangerous condition at the intersection,
including but not limited to a dangerous traffic signal. The claimant/motorcyclist
was found at fault in the accident, as opposing traffic still had a yellow signal
and he did not wait for the intersection to clear before entering it.
Recommendation: That the City Council deny Claim Number 09-37, Jacob
Soutsos, and direct Staff to send notice thereof to the Claimant.
5. CONSIDERATION OF CLAIM OF ALEX NAGHIBI, CLAIM NO. 10-04
The Claimant alleges that roots from a City tree created blockage in his sewer
lateral.
Recommendation: That the City Council deny Claim Number 10-04, Alex
Naghibi, and direct Staff to send notice thereof to the Claimant.
6. SET A PUBLIC HEARING FOR PUBLIC HEALTH GOALS (PHGs) 2007-2009
REPORT
The California Health and Safety Code requires that water utility agencies with
more than 10,000 service connections prepare a report every three years and
conduct a public hearing to provide information to consumers on the levels of
contaminants in the City's drinking water.
Recommendation: It is recommended the City Council set a public hearing for
July 6, 2010 at 7:00 p.m. to receive and respond to public comments on the City
of Tustin 2007-2009 Public Health Goal Report.
7. APPROVE A LICENSE AGREEMENT FOR LEMON GROVE MAINTENANCE
AT CITRUS RANCH PARK
In order to preserve the lemon grove at Citrus Ranch Park, staff has negotiated
a license agreement with a qualified vendor to maintain the grove and the
agreement is now ready for City Council approval.
Motion: It was moved by Mayor Pro Tem Nielsen and seconded by
Councilmember Davert to approve the recommended action.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 5 of 14
Motion carried 4-0
8. APPROVAL OF CONTRACT AMENDMENT NO. 4 FOR SPECTRUM CARE
LANDSCAPE AND IRRIGATION MANAGEMENT, INC. FOR LANDSCAPE
MAINTENANCE SERVICES IN THE TUSTIN LANDSCAPE AND LIGHTING
DISTRICT
Staff is requesting the City Council to approve a contract amendment with
SpectrumCare Landscape and Irrigation Management, Inc. (SpectrumCare) to
provide a one (1) year extension to the existing landscape maintenance contract
for the Tustin Landscape and Lighting District. The proposed amendment will
result in a 4% decrease from the existing contract fee and will also require the
performance of additional maintenance by the Contractor at no additional cost
to the District.
Motion: It was moved by Mayor Amante and seconded by Councilmember
Davert to approve the recommended action.
Motion carried 4-0
9. APPROVAL OF CONTRACT AMENDMENT NO. 5 FOR SPECTRUM CARE
LANDSCAPE AND IRRIGATION MANAGEMENT, INC. FOR LANDSCAPE
MAINTENANCE SERVICES IN THE GENERAL FUND AND TUSTIN LEGACY
AREAS OF THE CITY
Staff is requesting the City Council to approve a contract amendment with
SpectrumCare Landscape and Irrigation Management, Inc. (SpectrumCare) to
provide a one (1) year extension to the existing landscape maintenance contract
for the General Fund and Tustin Legacy areas in the City. The proposed
amendment will result in a 4% decrease from the existing contract fee and will
also require the performance of additional maintenance by the Contractor at no
additional cost to the City.
Motion: It was moved by Mayor Amante and seconded by Councilmember
Davert to approve the recommended action.
Motion carried 4-0
10. APPROVE THE ANNUAL MEASURE M ELIGIBILITY SUBMITTAL PACKAGE,
FISCAL YEAR 2010-2011
In order to maintain Measure M eligibility, the City is required to annually submit
a compliance package to the Orange County Transportation Authority (OCTA).
Recommendation: It is recommended that the City Council take the following
actions:
1. Adopt Resolution No. 10-65 concerning the City's Circulation Element for
Master Plan of Arterial Highways consistency; and
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 6 of 14
2. Adopt the attached draft Measure M Growth Management Program
Seven-Year Capital Improvement Program (Fiscal Year 2010-2011
through Fiscal Year 2016-2017); and
11
12.
3. Authorize the Director of Public Works/City Engineer to submit the City
of Tustin's Measure M eligibility package to the Orange County
Transportation Authority.
RESOLUTION NO. 10-65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA CONCERNING THE STATUS OF THE CIRCULATION
ELEMENT FOR THE CITY OF TUSTIN
STATUS REPORT ON REDEVELOPMENT AGENCY PROJECTS
Redevelopment Agency staff provides on a monthly basis an update of
redevelopment related projects.
Recommendation: Receive and File.
CROSSING GUARD PROGRAM CONTRACT RENEWAL
The crossing guard contract with All City Management Services, Inc. is up for
renewal for the 2010-2011 school year.
Motion: It was moved by Mayor Amante and seconded by Councilmember
Davert to approve the recommended action.
Motion carried 4-0
REGULAR BUSINESS ITEMS
13. RESOLUTION NO. 10-67 & RDA RESOLUTION NO. 10-06 APPROPRIATING
FUNDS FOR VARIOUS CITY BUDGETS FOR THE FISCAL YEAR 2010/2011
The City Council is requested to approve the attached Resolution adopting the
budgets for the City and the Water Enterprise for Fiscal Year 2010/2011.
Motion: It was moved by Councilmember/Agencymember Davert and seconded
by Mayor Pro Tem/Chair Pro Tem Nielsen to approve the recommended action.
RESOLUTION NO. 10-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, ADOPTING THE CITY BUDGET AND APPROPRIATING
FROM THE ANTICIPATED REVENUES OF THE CITY FOR THE FISCAL
YEAR 2010- 2011
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 7 of 14
RDA RESOLUTION NO. 10-06
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF TUSTIN, CALIFORNIA, ADOPTING THE AGENCY BUDGET
AND APPROPRIATING FROM ANTICIPATED REVENUE OF THE
AGENCY FOR THE FISCAL YEAR 2010-2011
Motion carried 4-0
14. APPROPRIATION LIMIT FOR FISCAL YEAR 2010/2011
Article XIII B of the State Constitution requires each City to annually adopt a
limit on appropriations for all governmental funds. The following
recommendation and attached worksheets are based on the Proposed Budget
as presented to the City Council.
Motion: It was moved by Councilmember Davert and seconded by Mayor Pro
Tem Nielsen to approve the recommended action.
RESOLUTION NO. 10-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DETERMINING AND ADOPTING AN APPRPRIATION LIMIT
FOR THE FISCAL YEAR 2010-2011 IN ACCORDANCE WITH ARTICLE
XIII B OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, AND
SECTION 7910 OF THE GOVERNMENT CODE
Motion carried 4-0
15. SALARY RESOLUTION FOR THE ELECTED CITY CLERK
Adoption of the attached Resolution will authorize compensation and benefits
adjustments for the elected City Clerk in accordance with Council direction.
Motion: It was moved by Councilmember Davert and seconded by
Councilmember Palmer to approve the recommended action.
RESOLUTION NO. 10-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING COMPENSATION AND BENEFITS FOR THE
ELECTED CITY CLERK
Motion carried 4-0
16. INTRODUCTION OF ORDINANCES AMENDING COMPENSATION AND
BENEFITS PROVIDED TO CITY COUNCIL MEMBERS
Adoption of the attached Ordinances will amend compensation and benefits
provided to members of the City Council pursuant to Council direction.
Motion: It was moved by Councilmember Davert and seconded by
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 8 of 14
Councilmember Palmer to approve the recommended action.
ORDINANCE NO. 1383
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING SECTION 1303 OF THE TUSTIN CITY CODE
RELATING TO CITY COUNCIL COMPENSATION AND ADDING SECTION
1308 RELATING TO CITY COUNCIL BENEFITS
ORDINANCE NO. 1384
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING SECTION 9503 OF THE TUSTIN CITY CODE
RELATING TO COMPENSATION AND EXPENSES OF MEMBERS OF
THE TUSTIN COMMUNITY DEVELOPMENT COMMISSION
Motion carried 4-0
17. APPOINTMENT OF INTERIM CITY MANAGER
William A. Huston, the City Manager since 1981, has provided the City Council
with his intent to retire in July. The City has initiated a process to begin an
executive search for a new City Manager. We anticipate a limited period of time
between the City Manager's retirement and the appointment of his replacement
and suggest Mr. Huston remain as a part-time employee continuing to serve as
City Manager.
Motion: It was moved by Councilmember Davert and seconded by Mayor
Amante to approve the recommended action.
Motion carried 4-0
18. SECOND READING OF CODE AMENDMENT 10-003 (ORDINANCE NO.
1380), MASSAGE ESTABLISHMENTS
On September 27, 2008, the Governor signed Senate Bill (SB) 731 into law,
relating to massage therapy. Code Amendment 10-003 is proposed to achieve
consistency with State law, codify new massage regulations, and protect the
public health, safety, and welfare.
Proposed Code Amendment 10-003 (Ordinance No. 1380) would:
1. Require all massage therapists and practitioners in Tustin to be certified
by the California Massage Therapy Council (CAMTC).
2. Provide a grace period to existing massage technicians and operators
holding Valid City of Tustin permits.
3. Require all massage owners and operators to obtain new establishment
permits from the City.
4. Amend the Zoning Code to allow massage establishments as an outright
permitted use in the Retail Commercial (C-1 ), Central Commercial (C-2),
and Commercial General (C-G) zoning districts.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 9 of 14
On May 11, 2010, the Tustin Planning Commission adopted Resolution No.
4146, recommending that the Tustin City Council adopt Ordinance No. 1380,
relating to the regulation of massage establishments and massage therapists
and practitioners.
Motion: It was moved by Councilmember Davert, seconded by Councilmember
Palmer to have second reading by title only and adoption of Ordinance No.
1380 (roll call vote).
ORDINANCE NO. 1380
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, REPEALING PART 2 OF CHAPTER 6 OF ARTICLE 3 OF
THE TUSTIN CITY CODE, ADDING PART 6 OF CHAPTER 6 OF ARTICLE
3 OF THE TUSTIN CITY CODE, AND AMENDING ARTICLE 3 AND
ARTICLE 9 OF THE TUSTIN CITY CODE RELATING TO REGULATION
OF MASSAGE ESTABLISHMENTS AND MASSAGE THERAPISTS AND
PRACTITIONERS
Motion carried 4-0
19. LEGISLATIVE REPORT
At this time, the City Council may take the opportunity to discuss current
legislation of interest.
Mayor Amante:
Council will discuss the issue of Rule of Law city and support for Arizona's
immigration law at the July 6t", 2010 meeting.
Copies of SB 1445 were provided to staff and Council. Mayor Amante
requested to have a discussion at the July 6t", 2010 meeting.
20. CONSIDER ACTIONS WITH RESPECT TO CITY REMEDIES FOR MATERIAL
DEFAULT UNDER THE DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN TUSTIN LEGACY COMMUNITY PARTNERS, LLC., THE CITY OF
TUSTIN, AND TUSTIN PUBLIC FINANCING AUTHORITY.
Presentation by Assistant City Manager, Christine Shingleton
The City and Tustin Public Financing Authority ("Authority") previously entered
into a Disposition and Development Agreement (Master Development) ("DDA")
with Tustin Legacy Community Partners, LLC ("TLCP" or the "Developer"). The
DDA established the parameters of development and conveyance of certain
property at Tustin Legacy to TLCP. TLCP has not performed under the terms of
the DDA. As a result, the City found the Developer in Material Default under the
DDA. Since the Material Defaults have not been cured by TLCP or the
Developer's Permitted Mortgagee, the City and Authority are being asked to
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 10 of 14
consider certain actions in response to the uncured Material Defaults. A
Termination Agreement has been prepared which would permit TLCP to
consensually terminate its obligations under the DDA and Development
Agreement 06-01 and to voluntarily re-convey 335.76 acres of land back to the
City. Absent execution of the Termination Agreement by TLCP, certain
additional actions in response to the uncured Material Defaults with regards to
the DDA and Development Agreement 06-01 are identified for City Council and
Tustin Public Financing Authority consideration.
Public Input -
Elizabeth Cobb -Requested an extension to produce the requested loan documents to
City negotiators
RECESSED -11:00 p.m.
RECONVENED - 11:07 p.m.
Motion: It was moved by Councilmember/Agencymember Davert and seconded
by Mayor Pro Tem/Chair Pro Tem Nielsen that the City Council and the Tustin
Public Financing Authority direct staff to take all actions necessary or
appropriate to implement Option 1 (identified below), provided Condition A
below is satisfied. If Condition A and Option 1 below are not timely satisfied, in
whole or in part, then the City Council and Tustin Public Financing Authority
direct staff to take all actions necessary or appropriate to implement Option 2
(identified below).
Condition A: On or before July 6, 2010 at 5:30 p.m., TLCP shall have provided
full, non-redacted copies of the related loan documents to City negotiators.
OPTION 1:
Approve the Termination Agreement which indicates the terms under which
the City would offer TLCP a consensual termination of the DDA, and
authorize the City Manager and Executive Director of the Tustin Public
Financing Authority to execute the Termination Agreement and take all
actions necessary to implement the Termination Agreement, including the
execution of all related documents and instruments, subject to any non-
substantive modifications as may be determined necessary as may be
recommended by the City Attorney or City's special counsel. Pursuant to the
Termination Agreement, the Phase I Property would be re-conveyed to the
City in lieu of exercise by the City of its Right of Reverter and foreclosure of
an existing Notice of Delinquency and Claim of Lien (the "Lien") recorded
against the Phase 1 Property by the City on April 6, 2010.
In the event that City staff and legal counsel are unable to obtain agreement
and execution of the Termination Agreement by TLCP by July 6, 2010 at
5:30 p.m., City staff and legal counsel are authorized to pursue actions
identified under Option 2.
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 11 of 14
2. Issue to TLCP a written Notice of Non-Compliance under Section 4.2 of the
Tustin Legacy Development Agreement ("DA") 06-02 specifying the grounds
and facts demonstrating TLCP's non-compliance with the terms of the
Development Agreement and all other non-compliance procedures contained
in the Development Agreement.
OPTION 2: If either of the conditions above are not timely satisfied, the City
Council and the Tustin Public Financing Authority direct staff to take all actions
necessary or appropriate to:
1. Terminate the DDA and license granted to TLCP pursuant to Section 5.2 of
the DDA with respect to any and all portions of the Developer Parcels as
defined in the DDA (the "DDA Termination"), effective immediately, and inform
TLCP and TLCP's mortgagee, KeyBank, in writing of the DDA Termination.
The foregoing termination shall not be deemed to terminate or to effect any
rights or obligations of Permitted Mortgagees under the DDA, including,
without limitation, Article 16 thereof.
2. Instruct the City Attorney to take such steps as are necessary to cause the
City to re-enter the 335.76 acres that have been previously conveyed to TLCP
(the "Phase I Property") and to revest title thereto in the City (the "Right of
Reversion", as described in the DDA), such title to be subject to the lien of
any Permitted Mortgage, but also subject to any provisions of the DDA which
take precedence over the rights of a Permitted Mortgage.
3. Instruct the City Attorney to pursue on behalf of the City recovery of the
amount of the Developer's deficit in the Fair Share Contribution to the City in
the amount of $269,479,445, and certain attorney fees and consultant fees in
the amount of $39,532 due and owing to the City contained in the Lien
recorded against the Property, including recovery of any additional costs
associated with such Lien recovery, including authorization to foreclose on
such Lien.
4. Instruct the City Attorney to exercise the City's rights under its performance
bonds for certain work not yet completed within the Project, including, but not
limited to:
a. A $353,000 Faithful Performance Bond for required Tract 17144, Warner
Avenue Storm Drain improvements from Red Hill Ave. to Armstrong
Avenue (Safeguard Insurance, No. 5034354).
b. A $176,500 Labor and Materials Bond for the required Tract 17144
Warner Avenue Storm Drain Improvements from Red Hill Ave. to
Armstrong Avenue (No. 5034254).
c. A $500,000 Faithful Performance Bond for required Tract 17144,
Neighborhood E, Phase 1 Local Storm Drain Improvements (Safeguard
Insurance, No. 5034271).
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 12 of 14
d. A $250,000 Labor and Materials Bond for the required Tract 17144,
Neighborhood E, Phase 1 Local Storm Drainage Improvements (No.
5034271).
e. A $50,000 Maintenance Bond for required Tract 17144,Neighborhood E,
Phase 1 Loca Storm Drain Improvements not completed (Safeguard
Insurance, No. 5034272).
f. A $3,435,500 Faithful Performance Grading Bond for mass grading for
Tract 17026 (Safeco Insurance Company of America, No. 6409181).
g. A $1,020,400 Faithful) Performance Grading Bond for rough grading for
Tract 17144, Neighborhood E (Safeco Insurance Company of America,
No. 6409186)
5. Instruct the City Attorney to review and, as appropriate, exercise all other
rights and remedies under the DDA for non-performance and report back to
the City Council to ensure adequate recovery from TLCP of all damages
incurred by the City due to Developer's failure to perForm its obligations under
the DDA.
6. Issue to TLCP a written Notice of Non- compliance under Section 4.2 of the
Tustin Legacy Development Agreement (DA) 06- 02 specifying the grounds
and fats demonstrating TLCP's non-compliance with the terms of the
Development Agreement; and all other non-compliance procedures contained
in the Development Agreement.
Motion carried 4-0
OTHER BUSINESS/COMMITTEE REPORTS -City Manager, City Attorney, City Council
Councilmember Davert:
• Thanked staff for a great time at the Chili Cook-Off
• Congratulated Fountain Valley Mayor, Larry Crandall, as the newly elected Chair
for Orange County Sanitation District
• Mentioned Tustin's schools are out for summer break
• Mentioned that at the Revenue and Taxation Committee meeting on Thursday, July
17, Robin Lowe, President of the State League, will have a presentation on AB 32
and SB 375
Councilmember Palmer: No comments
Mayor Pro Tem Nielsen: No comments
Mayor Amante:
• Reported that Transportation Corridor Agency passed a balanced budget
• Reported that Orange County Transportation Authority passed a balanced budget
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 13 of 14
• Reported that West County Connectors Project broke ground last week
• Mentioned attending a Rating meeting next week where he will present to Wall
Street how the Orange County Transportation Authority is handling tough economic
times
• Invited residents to attend the Fourth of July parade in Tustin Meadows and the
fireworks show at Tustin High School
ADJOURNMENT - 11:35 p.m. The next regular meeting is scheduled for Tuesday, July 6,
2010 at 5:30 p.m. for the Closed Session Meeting followed by the Regular Business
Meeting at 7:00 p.m. in the Council Chamber, 300 Centennial Way, Tustin, California.
Adjourned Meeting in Memory of
Paul Wagner
PAMELA STO R,
City Clerk
City Council/Redevelopment Agency/Public Financing Authority June 15, 2010
Minutes Page 14 of 14