HomeMy WebLinkAbout01 MINUTES SPEC 2007 06 12 - REG 2007 07 03 07-17-07Agenda Item 1
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL
TUSTIN, CALIFORNIA
JUNE 12, 2007
CALL TO ORDER - 4:00 P.M.
Reviewed:
City Manager
Finance Director N/A
ATTENDANCE
Present: Mayor Lou Bone; Mayor Pro Tem Jerry Amante; and
Councilmembers Doug Davert, Tony Kawashima, and Jim Palmer
Absent: None
City Clerk: Pamela Stoker
Others Present: William A. Huston, City Manager
PUBLIC INPUT -None
WORKSHOP -Fiscal Year 2007/2008 Budget
City Manager Huston presented the proposed Fiscal Year 2007-08 Budget:
The draft operating budget for all funds ensures that reserves are at levels that protect the
City's financial interests and provide the flexibility to adjust in the future if needed. In the
past several years through prudent financial planning, the City has been able to sustain
consistent levels of services while:
• Maintaining a 15% General Fund operating reserve for cash flow, investment income
and unforeseen contingencies;
• Absorbing the annual loss of property tax revenue shifted to the Educational Revenue
Augmentation Fund (ERAF) as mandated by the State;
• In fiscal years 2004-05 and 2005-06, absorbing the loss of over one million dollars in
additional General Fund revenue shifts to the State;
• Transferring monies to the capital improvement and park development funds in order
to complete essential projects;
• Transferring monies to the liability fund to meet obligations for the City's self-insured
retention level.
• Cash flow for large-scale CIP projects would not be possible without the use of
Reserves.
Summarized the following:
FY 2007-08 Total Revenues
General Fund $46,259,995
CIP Fund $11,967,123
Measure M Funds $5,439,500
Gas Tax Fund $1,772,500
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CDBG Fund $1,153,206
Special District Funds $11,807,690
RDA Funds $29,652,248
Water Enterprise Funds $30,236,250
Internal Service Funds $2,713,737
All Other Sources $744,000
Park Funds $462,500
Tustin Legacy Enterprise Fund $1,040,000
Community Facilities District Fund $49,206,078
Reserves $16,382,774*
TOTAL= $208,837,601
*Staff noted that cash flow for infrastructure and long-term projects not feasible without
the use of Reserve funds; reserves used for unfunded expenses, as well as special
projects.
FY 2007-08 Total Expenses
General Fund $48,207,029
CIP Fund $14,513,135
Measure M Funds $7,117,842
Gas Tax Fund $1,090,000
CDBG Fund $1,153,206
Special District Funds $12,676,717
Tustin Legacy Enterprise Fund $5,002,727
RDA Funds $29,454,076
Water Funds $34,403,464
Internal Service Funds $1,564,327
All Other Sources $6,337,912
Park Funds $8,110,000
Community Facilities District Fund $39,207,166
TOTAL= $208,837,601
FY 2007-08 Use of Funds -General Funds are discretionary, but majority of funds are
either Capital Improvement Project funds or restricted funds.
State Impacts on General Fund
• Educational Revenue Augmentation Fund (ERAF)--diverts property tax revenue to
education. Since 1992-93 loss totals $20,306,288 (projected through fiscal year
2007-08)
• Proposition 57-Known as the "triple flip." Provides a revenue stream State needs
to secure recovery bonds by:
• Reduced City share of sales tax from 1.0% to .75%
• Lost sales tax is replaced by property taxes (i.e., ERAF)
• Schools are made whole by State general funds
• VLF replacement is enacted pursuant to Proposition 1A. Property tax revenue
(ERAF) is used to replace lost VLF.
• Cities agree to lose VLF revenue in 2004-05 and 2005-06. Tustin's share was $1
million each year.
FY 2007-08 General Fund Revenue
Property Taxes $9,369,844 19.6%
Property Taxes in Lieu VLF $5,089,957 10.7%
Motor Vehicle in Lieu $400,000 0.8%
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Franchise Fees $1,380,000 2.69%
Sales Tax $16,155,591 33.8%
Sales Tax Backfiil $4,959,409 10.4%
Fines & Forfeitures $700,000 1.5%
Recreation Fees $764,445 1.6%
Transfers from other funds $2,722,450 5.7°l0
Interest Income $450,000 0.9%
Reserves $1,947,034 4.1 %
All other sources $2,080,813 4.4%
Licenses Permits Fees $1,767,640 3.7%
FY 2007-08 General Fund Expenses
Police 21,266,752 44.1 %
Fire 5,003,200 10.4%
Parks and Recreation 2,865,868 5.9%
Non-Departmental 812,550 1.7%
Legislation 956,412 2.0%
Administration 3,555,457 7.4%
Community Development 3,841,092 8.0%
Public Works 9,905,698 20.5%
Proposed New Positions
• Assistant Director, Public Works
• Engineering Aide
• Maintenance Worker
• Water Distribution Operator
• Senior Planner
• Police Officer
• Police Service Officer I 2
Additional staffing needs, i.e. Code Enforcement Officers, Maintenance Workers,
Police Officers etc., may be added in the future to keep up with City growth.
Expenditures-5 Years of Budgeted Vs. Actual General Fund
Comparison of CIP ($103,808,171) and Operating Expenses ($105,029,430) -
approximately 50/50 spent on each category.
Property Tax Distribution -City receives $0.126 of every dollar. Staff noted that property
assessment amounts set by County.
Sales Tax Review: FY 2000/01 to FY 2007/08 -gradual increase over years; growth
expected when The District at Legacy is completed. Beginning in FY 04-05, 25% of
sales tax revenue diverted to the State {Proposition 57}. The amount diverted is
"backfilled" by the State each year in the form of property taxes.
Educational Revenue Augmentation Fund total losses since 1993 have equaled
$20,306,288. Staff commented that Redevelopment Project Areas have state
mandated distribution formulas that differ from general city areas. Property tax rate at
the Legacy site is 3.9% compared to 12.6% in general fund areas. Council requested
pie chart with distribution amounts for Legacy project area and non-legacy area.
FY 2007-08 Public Safety Cost versus Sales Tax Revenues Total Public Safety Costs
equal $26,269,952
FY 2007-08 Capital Improvement Projects
Transportation Facilities $23,879,861
Public Facilities $22,258,428
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Water Facilities $20,852,214
Park Facilities $7,155,000
Traffic Control Facilities $1,226,653
Reassessment District 95-1 $346,102
Tustin Legacy $27,359,913
Flood Control Facilities $730,000
Seven Year CIP Projects 2007/08 through 2013/14
Transportation Facilities $186,359,861
Flood Control Facilities $9,050,000
Park Facilities $11,662,000
Water Facilities $37,680,214
Re-Assessment District 95-1 $596,102
Traffic Control Facilities $2,279,653
Public Facilities $23,901,404
Tustin Legacy $41,338,768
*Does not include expenses by TLCP, estimated to be $400 million
Year End Projected Fund Balance Fiscal Year 2007-08 -City Manager noted that
Reserves set at 19°l0, Council policy is 15%. Council requested percentage change
with dollar amounts on charts as well as actual fund balance amounts.
Proposed Capital Improvement Program FY 07/08 to FY 13/14 -Legacy Project does not
include developer's share of expenses. Revenue amount of $193 million is not liquid
cash, includes bond debt, reserves, property value, and fixed assets. Citrus Ranch
Park includes carry-over funds from FY 06-0?; costs were higher than estimated -
project was scheduled to be completed in phases, but was later consolidated into
one phase. Council requested narrative on GIP Programs. The budget will have
adjustments made throughout the year, as the Council considers new projects.
Councilmember Kawashima left the meeting at 5:10 p.m.
Council discussion ensued. Property taxes depicted with ERAF back-fill and without.
Council requested a list of priorities for CiP Projects from 2003-2004 and 2005-2006 as
well as staff recommended priorities for 2007-2008. EI Gamino Real Park tot lot and
parking to be addressed in coming year. Red Hill Quiet Zone project priority because of
increasing train traffic. Grade separation improvements at Red Hill expected in FY
2012/13 and Newport Avenue extension in progress, together over $100 million in
infrastructure costs. Tim Serlet, Public Works Director noted that Metrolink Station
Parking Structure design included in 2007-08 budget, but construction scheduled for the
following year. Grants actively sought when available. Streaming video, website
revamp, and community survey included in non-departmental expenses for FY 07-08.
Final Budget meets the GFOA standards. Focus of the Council is to provide quality
services and improve communication to community; examples of projects include
broadcasting of all commission meetings and mapping CIP Projects. Council requested
that department directors present department's goals and objectives. Council suggested
that employee succession planning, customer service training for employees, and
measurable outcomes, goals and objectives be included in future budgets.
Council highlights in FY 07-08 include full funding for library expansion project, Senior
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Center Kitchen Renovation, and Citrus Ranch Park project; improved policing; improved
grade improvements; enhanced reserves; and transit improvements that all address
quality of life issues with no new taxes.
Council thanked staff for efforts in bringing forward a balanced budget and requested that
budget adoption be placed on the next regularly scheduled council meeting, which will
take place on June 19, 2007.
ADJOURNED-6:10 p.m.
City Council Meeting June 12, 2007
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Agenda Item
MINUTES OF THE REGULAR MEETING Reviewed:
OF THE CITY COUNCIL City Manager
TUSTIN, CALIFORNIA Finance Director
JULY 3, 2007
CALL TO ORDER - 5:30 P.M
ATTENDANCE
Present: Mayor Lou Bone; Mayor Pro Tem Jerry Amante; Councilmembers
Doug Davert, Tony Kawashima, and Jim Palmer
Absent: None
City Clerk: Maria R. Huizar, Chief Deputy
Others Present: William A. Huston, City Manager and Doug Holland, City Attorney
PUBLIC INPUT -None
CLOSED SESSION ITEMS
A. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION pursuant
to Government Code Section 54956.9 (b) - 2 Cases
B. CONFERENCE WITH LEGAL COUNSEL - POSSIBLE INITIATION OF
LITIGATION pursuant to Government Code Section 54956.9 (c) - 2 Cases
C. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code
Section 54957.6
Agency Negotiators: Kristi Recchia, Director of Human Resources and
Linda Jenson
Employee Organization: Tustin Police Officers Association (TPOA)
RECESS - At 5:30 p.m. City Council recessed to closed session to discuss matters
listed under Closed Session.
RECONVENE - At 6:57 p.m. City Council reconvened in public session.
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N/A
City Council Meeting July 3, 2007
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PUBLIC MEETING
CALL TO ORDER - 7:00 p.m.
INVOCATION, PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE -
Tustin American Legion
ROLL CALL
Present: Mayor Lou Bone; Mayor Pro Tem Jerry Amante; Councilmembers
Doug Davert, Tony Kawashima, and Jim Palmer
Absent: None
City Clerk: Pamela Stoker
Others Present: William A. Huston, City Manager and Doug Holland, City Attorney
CLOSED SESSION REPORT -Nothing to report.
PRESENTATION -Mike Gartlan and Judy Woolen of KB Home presented housing
affordability report
FIRST PUBLIC INPUT -Douglas DiGiore, President of the Cantada Homeowners
Association reported that annual maintenance cost for eucalyptus trees is prohibitive and
inquired if Association could deed back trees to City or use same tree maintenance
agreement as City to lower cost.
PUBLIC HEARINGS
PUBLIC HEALTH GOALS (PHGs) 2004-2006 REPORT
Provisions of the California Health and Safety Code specify that California
water utility systems periodically prepare a report and conduct a public
hearing if contaminants are detected above the public health goals (PHGs)
adopted by the California Environmental Protection Agency's Office of
Environmental Health Hazard Assessment (OEHHA) or above the maximum
contaminant level goals (MCLGs) adopted by the United States
Environmental Protection Agency (USEPA). For the reporting period 2004-
2006, Tustin's water system exceeded the PHGs for lead, copper and
coliforms, but was below the EPA's action level of the mandatory MCL.
Overall, the City is in compliance with all regulatory water quality standards.
Fred Adjarian, Water Services Manager presented staff report. The public
hearing opened at 7:31 p.m. There were no public speakers and the hearing
closed at 7:31 p.m.
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Motion: It was moved by Councilmember Davert, seconded by
Councilmember Kawashima, to:
1.a. Conduct a public hearing to accept and respond to public comments
on the 2004-2006 Public Health Goals Report; and
1.b. At the conclusion of the public hearing, approve the 2004-2006 Public
Health Goals Report.
Motion carried 5-0.
2. 2007 ALCOHOLIC BEVERAGE CONTROL GRANT
The Department of Alcoholic Beverage Control (ABC) advertised a total of $3
million in state grant money for local law enforcement agencies throughout
California. In the grant announcement. ABC intended to award 35-40
individual grants of up to $125,000 for Fiscal Year 2007-08. The purpose of
the grants was to enable the selected agencies to expand their efforts in
addressing alcohol-related problems through a comprehensive ABC program
encompassing a wide range of strategies.
The Tustin Police Department was awarded one of the grants in the amount
of $43,200. The money will be used primarily for officer overtime to meet the
basic goals outlined in the grant application.
The public hearing opened at 7:32 p.m. There were no public speakers and
the hearing closed at 7:32 p.m.
Motion: It was moved by Councilmember Davert, seconded by
Councilmember Palmer, to:
2.a. Open and close a Public Hearing;
2.b. Authorize usage of the funds as recommended by the Police
Department; and
2.c. Authorize reimbursement from the Department of Alcoholic Beverage
Control (ABC) to the City of Tustin for the investigation of alcohol-
related crimes, and authorize the Chief of Police to sign any grant
related paperwork on behalf of the City.
Motion carried 5-0.
3. AMENDING MUNICIPAL CODE PROVISIONS ADOPTING COUNTY
ANIMAL CONTROL REGULATIONS BY REFERENCE TO CLEAN UP OUT-
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DATED AND INCORRECT REFERENCES
Pursuant to the City's agreement with the County of Orange for enforcement
of animal control regulations in the City, the City Council previously adopted
the provisions in Titles 4 and 5 of the County Code concerning animal control
and licensing by reference into the City's Municipal Code. Since the City last
went through this statutory incorporation by reference process in 1980, Titles
4 and 5 of the County Code have been amended and reorganized.
City Clerk published notice according to law -June 14 and 21, 2007 in the
Tustin News.
Joe Garcia, Police Captain and Jennifer Phillips, Director OC Animal Care
Services presented staff report. Ms. Phillips presented services offered at
Animal Shelter and proposed Barking Dog Program
Council discussion ensued. Council inquired as to implications of not
adopting barking dog program. Ms. Philips indicated that it was either status
quo or adopt provisions of program as proposed. City Attorney indicated that
Council may adopt own rules and policies as they pertain to barking dogs, but
need to be negotiated with County for those services. Council felt that
intervention efforts are a plus, but need additional time to review program
success before implementing in Tustin. Council requested that Animal Care
Services return in 6 months with data collected and Council would review and
consider program at that time.
The public hearing opened at 8:03 p.m. There were no public speakers and
the hearing closed at 8:03 p.m.
Motion: It was moved by Mayor Pro Tem Amante, seconded by
Councilmember Palmer, to re-introduce Ordinance No. 1340 without the
"Barking Dog" provisions (City Attorney Holland clarified that Tustin City Code
Section 4210(d) related to barking dogs will not be included in motion, and
Orange County Board of Supervisors Ordinance No. 06-011 added two
things -new definition of barking dog and barking dog violations and civil
fines, motion would exclude Subarticle 1 of Article 2 of Division 1 of Title 4
and only adopt definition of barking dog); staff to return with proposal on
Administrative Procedures consistent with attempt to intervene; return to
Council in 6 months with data collected on barking dog program; and
requested community outreach. Motion carried 5-0.
CONSENT CALENDAR ITEMS- Councilmember Davert requested that item #7 be
continued to the July 17~' Council Meeting. Councilmember Palmer pulled item #4 for
separate consideration. It was moved by Councilmember Davert, seconded by Mayor
Pro Tem Amante, to approve the .balance items on the consent calendar. Motion
carried 5-0.
City Council Meeting July 3, 2007
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4. APPROVAL OF MINUTES – SPECIAL MEETING OF JUNE 12, 2007 AND
REGULAR MEETING OF JUNE 19, 2007
Motion: It was moved by Councilmember Palmer, seconded by
Councilmember Davert, to approve the Minutes of the Regular City Council
Meeting held on June 19, 2007 and requested continuance of the Minutes from
the Special City Council Meeting held June 12,2007 to include additional
comments made by the City Council. Motion carried 5-0.
5. APPROVAL OF DEMANDS AND RATIFICATION OF PAYROLL
Motion: Approve demands in the amounts of $3,365,962.29; $3,577.43; and
$1,900,791.0; and Payroll in the amount of $631,643.99.
6. CONSIDERATION OF CLAIM OF CHRIS TERRANOVA, CLAIM NO. 07-16
The Claimant reported he was driving past a construction site in Tustin when
a truck pulling out of the site dropped or kicked up some rocks which then hit
the windshield of the Claimant's car. An estimate of the cost to replace the
cracked windshield was submitted in the amount of $1,121.00.
Motion: Deny Claim Number 07-16, Chris Terranova, and direct Staff to send
notice thereof to the Claimant.
7.` CONSIDERATION OF CLAIM OF JOE WILLIE TURNER, JR., CLAIM NO.
07-18
The Claimant reported that he turned in three weapons (firearms) for
safekeeping purposes to the Tustin Police Department. He was informed that
a State Justice Department release was needed to re-claim the weapons and
stated he sent in the forms and fees on time but the processing took over a
year. After he received his eligibility, he found the firearms had been
destroyed and he is asking to be reimbursed $2,775.00 for the loss of his
property.
Motion: Continue consideration of item to the July 17, 2007 City Council
meeting.
8. LEAGUE OF CALIFORNIA CITIES VOTING DELEGATE
Motion: Consistent with League bylaws, appoint Jerry Amante as Voting
Delegate and Lou Bone as Alternate for the League of California Cities'
Annual Business Meeting scheduled for Saturday, September 8, 2007.
City Council Meeting July 3, 2007
Minutes Page 5 of 8
9. TUSTIN POLICE SUPPORT SERVICES ASSOCIATION MEMORANDUM
OF UNDERSTANDING (JULY 1, 2007 THROUGH JUNE 30, 2009)
Adoption of the attached Resolution and Memorandum of Understanding will
authorize salary and benefit adjustments, pursuant to previous Council
direction, for employees within the Tustin Police Support Services
Association (TPSSA) bargaining unit.
Motion: Adopt resolution.
RESOLUTION NO. 07-56 - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING THE
CLASSIFICATION AND COMPENSATION PLAN FOR THE CITY OF
TUSTIN AND APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF TUSTIN AND THE
TUSTIN POLICE SUPPORT SERVICES ASSOCIATION,
CONCERNING WAGES, SALARIES, FRINGE BENEFITS AND
CONDITIONS OF EMPLOYMENT
10. CONTRACT AMENDMENT FOR LANDSCAPE MAINTENANCE SERVICES
FOR THE CITY OWNED AND LEASED AREAS AT TUSTIN LEGACY WITH
SPECTRUMCARE LANDSCAPE & IRRIGATION MANAGEMENT, INC.
Approval of the second contract amendment with SpectrumCare Landscape
& Irrigation Management, Inc. is requested to provide for landscape
maintenance services on the remaining City owned and leased parcels at
Tustin Legacy which are located outside of the Master Developer's footprint.
Motion: Approve the Second Amendment to the Agreement between
SpectrumCare Landscape & Irrigation Management, Inc. and the City of
Tustin for landscape maintenance services for City owned and leased
properties at Tustin Legacy, subject to final City Attorney approval.
REGULAR BUSINESS ITEMS
11. ADOPT ORDINANCE NO. 1339 -FORMING COMMUNITY FACILITIES
DISTRICT NO. 07-1 (TUSTIN LEGACY/RETAIL CENTER)
Motion: It was moved by Councilmember Davert, seconded by Mayor Pro
Tem Amante, to have second reading by title only and adoption of Ordinance
No. 1339 (roll call vote).
ORDINANCE NO. 1339 - AN ORDINANCE OF THE CITY OF TUSTIN
LEVYING SPECIAL TAXES WITHIN CITY OF TUSTIN COMMUNITY
FACILITIES DISTRICT NO. 07-1 (TUSTIN LEGACY/RETAIL
City Council Meeting July 3, 2007
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CENTER)
Motion carried 5-0.
12. CITY COUNCIL -LEGISLATIVE REPORTS
- SB375 (Steinberg). Transportation planning: travel demand models:
preferred growth scenarios: environmental review.
Mayor Pro Tem Amante indicated that proposed bill would not alleviate
global warming and suggested that Council oppose said bill.
Motion: It was moved by Mayor Pro Tem Amante, seconded by
Councilmember Palmer, to oppose SB375 and agendized for formal
action. Motion carried 5-0.
- ACAS (Devore). Property taxation: Department of Transportation real
property. Mayor Bone requested that this item be agendized for
consideration.
SECOND PUBLIC INPUT -None
OTHER BUSINESS AND COMMITTEE REPORTS
Councilmember Kawashima:
• Tomorrow will be 231St Birthday of our Nation; Tustin Meadows will hold annual
parade and City will have free fireworks display at Tustin High School; and
• Reported that Senior Center will have extended hours during high heat days and will
continue to do so the rest of the Summer on an as-needed basis.
Councilmember Palmer:
• Congratulated Marissa Charette and Board for Chamber of Commerce Gala success;
• Congratulated winners of the small and large businesses of the year -Doctor's
Ambulance and FastFrame of Tustin, respectively; and
• Reported that the City of San Clemente is setting up a-mail alert system and
encouraged staff to look at feature for our new and improved web site in
development.
Councilmember Davert:
• Echoed Councilmember Kawashima's remarks and wished all a happy Fourth of July;
• Reported that President George Bush signed the confirmation of a unanimous Senate
vote to appoint Councilmember Jim Palmer to the position of member of the Board of
Directors of the Corporation for National and Community Service. Board advises the
President on volunteerism and opportunities for community service across the
country, primarily encompassing three major sections - SeniorCorp, AmeriCorp, and
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Learn and Serve America. Palmer will be key policy leader and is the only elected
official that serves as a Presidential appointee.
Mayor Pro Tem Amante:
• Congratulated Councilmember Palmer on Presidential appointment;
• Wished all a safe and fabulous Fourth of July;
• Commented on presentation by KB Home -cost of affordable housing - OC Business
Council magazine published report on county lagging on affordable workforce
housing programs, but Tustin has focused on the problem and is on leading edge of
providing housing; and
• Reported that OCTA reviewed report prepared by SCAG on train pollution emission
and recommend electrifying all rails.
Mayor Bone:
• As a member of Metrolink Board and LOSAN not aware of electric trains proposed by
SCAG;
• OCTA Committee on Quiet Zone, Tustin ready and willing to be first to implement
program;
• League of California Cities -Transportation, Communication and Public Works
Committee heard presentation on AT&T, they may be changing policy direction;
• State has not approved budget, has $1 billion shortfall and proposing to use Prop 1 B
funds to balance the State budget;
• Concert in the Park in full swing, 4th of July fireworks show tomorrow evening and
Tustin Meadows hosts parade at 10 a.m.;
• Announced that Tustin does not allow fireworks or discharge of firearms, may be fined
or jailed; and
• Adjourn meeting in memory of Brad Bridenbecker.
ADJOURNMENT - 8:34 p.m. -The next regular meeting of the City Council is scheduled
for Tuesday, July 17, 2007 in the Council Chamber, 300
Centennial Way, Tustin, California
Adjourn in Memory of former
La Habra City Manager
Brad C. Bridenbecker
City Council Meeting July 3, 2007
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