HomeMy WebLinkAbout17 SUPPLEMENTAL APPROPRIATION FOR CLEAN-UP AND MAINTENANCE ON REUSE PARCEL 18DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
G1zY ��
AGENDA REPORTS� 1
MEETING DATE
TO
FROM
NOVEMBER 16, 2021
Agenda Item S
Reviewed: ?n��
City Manager DS
Finance Director
MATTHEW S. WEST, CITY MANAGER/LOCAL REUSE AUTHORITY
EXECUTIVE DIRECTOR
ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: SUPPLEMENTAL APPROPRIATION FROM FUND 189 FOR
INITIAL CLEAN-UP AND ONGOING MAINTENANCE ON REUSE
PARCEL 18 AT FORMER MCAS TUSTIN FOR FY 21/22
SUMMARY
Request for a supplemental appropriation of $330,000 from Fund 189 (Land Sale
Proceeds) for a Phase 1 initial cleanup and ongoing maintenance activities on Reuse
Parcel 18 at former Marine Corps Air Station (MCAS) Tustin.
RECOMMENDATION
It is recommended that the City Council, acting as the Local Reuse Authority (LRA) for
former MCAS Tustin, take the following actions:
1. Appropriate $330,000 from Fund 189 to the Economic Development Department
property management budget for the balance of FY 21/22 for a Phase 1 initial
clean-up and ongoing maintenance on Parcel 18
2. Direct staff to return to the City Council/LRA with progress updates and
recommendations for future phases of additional site work and budget requests for
Reuse Parcel 18
FISCAL IMPACT
Fund 189 has sufficient budgetary reserves to fund the requested supplemental
appropriation of $330,000. Any additional appropriations will be requested through the
mid -year or yearly budget process, or at a separate meeting of the City Council/LRA.
BACKGROUND
On August 11, 2021 the City Council (acting as the LRA) held a public meeting focused
on Reuse Parcel 18 at former MCAS Tustin. At this meeting, the City Council (acting as
the LRA) made certain findings based on the County of Orange's (County) inadequate
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Agenda Report — Supplemental Appropriation for Reuse Parcel 18
November 16, 2021
Page 2
responses to the City/LRA March 30, 2021 letter, and the County's refusal to take
responsibility for the site by accepting a license, interim lease and/or LIFOC for
maintenance and security of Reuse Parcel 18. On August 11, 2021, the City Council/LRA
took the following actions:
- Adopted LRA Resolution 21-01, revising the Federal Reuse Plan for former MCAS
Tustin to exclude the Orange County Regional Park from Reuse Parcel 18
(resolution attached)
- Directed staff to inform the Department of the Navy (Navy) and the Department of
the Interior (DOI) of the intent to adopt a revised Federal Reuse Plan for Reuse
Parcel 18 and to request that the Navy and DOI revoke the County's Public Benefit
Conveyance (PBC) application
- Directed staff to work with the Navy on an amendment to the existing City license
or an interim lease for the City/LRA to assume maintenance and security on Reuse
Parcel 18
- Directed staff to return to the City Council/LRA with several Federal Reuse Plan
alternatives for Reuse Parcel 18 at a later date
Since August 11, 2021, in accordance with City Council/LRA direction, staff has:
- Sent a letter to the Navy and DOI informing them of the August 11, 2021 City
Council/LRA findings and actions taken, and requesting a formal revocation of the
County's PBC application (letter attached)
- Requested that the City's Congressional representative Katie Porter submit an
inquiry letter to DOI regarding the status of the City/LRA revocation request
- Received an amended license from the Navy for the City/LRA to perform enhanced
maintenance and security on Reuse Parcel 18
- Developed a phasing plan and preliminary cost estimates for initial and future
phases of property maintenance, security and cleanup work to be performed by
the City/LRA
DISCUSSION
Staff will be presenting a phasing plan for City/LRA responsibilities on Reuse Parcel 18
with prerequisites required and preliminary associated costs for City Council/LRA
consideration. The phases are broken down as follows:
- Phase 1: Initial Cleanup (FY 21/22)
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Agenda Report — Supplemental Appropriation for Reuse Parcel 18
November 16, 2021
Page 3
o Large container removal
o Various piles removal
o Various equipment removal
o Interior fencing removal
o Repair and replace perimeter fencing
o Tree removal and maintenance
o Incorporation of site into regular Tustin Legacy property maintenance
contract
o Hazardous materials assessment to determine any abatement necessary
for all buildings (excluding hangar)
- Phase 2: Reuse Planning (Timing TBD)
o Begin City/LRA reuse planning process upon decision from DOI on
revocation of County PBC application
o Explore potential for revenue generation opportunities
o Perform ongoing site and tree maintenance
- Phase 3: Demo and Site Prep (Timing TBD)
o Hazardous materials abatement of buildings (other than hangar)
o Initial buildings demolition (to slab)
o Hardscape and utility demolition
o Grading
o Perform ongoing site and tree maintenance
Staff recommendation for consideration is that the City Council/LRA appropriate $330,000
from Fund 189 into the Economic Development property management fund to accomplish
the site activities listed under Phase 1. This phase focuses on initial clean-up and securing
of Reuse Parcel 18 and incorporating the site into the larger Tustin Legacy property
maintenance contract. All of the items for Phase 1 will be performed by existing City
contractors that are familiar with the site, and have provided reasonable cost quotes to
accomplish the Phase 1 work.
By accomplishing the items listed under Phase 1, the City/LRA will be undertaking the
most comprehensive clean-up, site security, property maintenance and assessment of
Reuse Parcel 18 since MCAS Tustin closed in 1999. Phase 1 will allow for greater site
visibility for public safety personnel, bring the site into a regular and ongoing maintenance
schedule, and demonstrate the City/LRAs immediate and future commitment to the site
on behalf of the Tustin community.
Staff will return to the City Council/LRA with updates on Phase 1 progress, as well as
recommendations and appropriation requests for Phase 2 and/or Phase 3 work at a future
date.
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Agenda Report — Supplemental Appropriation for Reuse Parcel 18
November 16, 2021
Page 4
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Signed by:
(,6sf ,v�3'd'Rt1'S6Bfil"F4...
Christopher Koster
Director of Economic Development
Attachments
DocuSigned by:
Kc Ng4."
Kenneth Piguee
Senior Management Analyst
- August 11, 2021 adopted LRA Resolution 21-01, revising the Federal Reuse Plan
for former MCAS Tustin
- Letter from the City/LRA to Navy and DOI dated August 19, 2021
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
RESOLUTION NO. 21-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, ACTING AS THE FEDERALLY DESIGNATED LOCAL REUSE
AUTHORITY FOR FORMER MARINE CORPS AIR STATION TUSTIN REVISING
THE EXISTING REUSE PLAN FOR FORMER MCAS TUSTIN REGARDING
REUSE PARCEL 18
WHEREAS, former Marine Corps Air Station (MCAS) Tustin was designated for
realignment and closure in 1991 by the Defense Base Closure and Realignment
Commission, and confirmed for realignment and closure by the Department of Defense
in 1993, pursuant to and in accordance with the Defense Base Closure and Realignment
Act of 1990, as amended; and
WHEREAS, prior to the closure and disposal of military installations, the Office of
Local Defense Community Cooperation (OLDCC) within the Department of Defense
(DOD), formerly known as the Office of Economic Adjustment (OEA), recognizes a local
governmental entity to be the Local Reuse Authority (LRA) to prepare a Reuse Plan for
closed or realigned military installations; and
WHEREAS, in 1992, the City of Tustin (City) was designated as the LRA for former
MCAS Tustin by OEA (now OLDCC) to prepare a Reuse Plan for former MCAS Tustin in
order to facilitate the closure and disposal of MCAS Tustin and its reuse in furtherance of
the economic development of the City and surrounding region; the City was re -confirmed
as the LRA in 1994; and
WHEREAS, during the LRA Reuse Planning process, the County of Orange
(County) sought to acquire former MCAS Tustin Reuse Parcel 18 to create and operate
a Regional Park through a Public Benefit Conveyance (PBC); and
WHEREAS, the City considered and supported the County PBC application
through Resolution 94-20, and the LRA included a County Regional Park in Parcel 18 in
the formal MCAS Tustin Reuse Plan submitted by the LRA to the United States
Department of Housing and urban Development for review and approval, which Reuse
Plan was subsequently approved; and
WHEREAS, in 1995, and in accordance with the MCAS Tustin Reuse Plan, the
County submitted a PBC application to acquire Parcel 18 to the Department of the Interior
(DOI) that identified the County's proposed plan for a Regional Park, and the funding
mechanism intended to address the costs of creating and operating the proposed
Regional Park which was approved by DOI; and
WHEREAS, in October 1996, the City approved the MCAS Tustin Specific
Plan/Reuse Plan after numerous meetings and community input which incorporated the
County Regional Park PBC on Reuse Parcel 18; and
Resolution 21-01
Page 1 of 4
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WHEREAS, former MCAS Tustin officially closed in 1999; and
WHEREAS, in 2012, the County submitted to the DOI an alternative Program of
Utilization (POU) that proposed changes to the previously approved PBC application by
seeking additional and more expansive revenue -generating activities which has never
been approved by DOI; and
WHEREAS, in 2013, the North Hangar (Hangar 1) on Reuse Parcel 18
experienced a partial roof collapse requiring stabilization by the Department of the Navy
(Navy); and
WHEREAS, since 2013, buildings and improvements on Reuse Parcel 18 have
experienced rapid physical deterioration due to a lack of maintenance and security; and
WHEREAS, due to the deterioration of Reuse Parcel 18, the City has been forced
to expend resources at its own cost and without reimbursement, to respond to safety
concerns involving trespassing, vagrancy, vandalism, and other illicit activities; and
WHEREAS, the Orange County Grand Jury issued a report entitled "What's
Happening with the Historic Tustin Hangars?" dated June 9, 2020 outlining the issues
with Reuse Parcel 18; and
WHEREAS, the County has previously refused to accept a license, interim lease,
or Lease in Furtherance of Conveyance (LIFOC) to maintain and secure Reuse Parcel
18 as the intended property recipient; and
WHEREAS, the County has demonstrated no progress on advancing planning and
financing of the proposed Regional Park in accordance with the County's PBC
Application; and
WHEREAS; on February 23, 2021, the LRA held a public meeting inviting all
property recipients at former MCAS Tustin to give updates on development progress; and
WHEREAS, at the February 23, 2021 meeting, the County indicated an
unwillingness to take an interim license, interim lease, or LIFOC to secure and maintain
Reuse Parcel 18, and also indicated there is no current timeline, plan, or approved budget
for when or how the County proposed Regional Park would be constructed; and
WHEREAS, on March 30, 2021, the LRA sent a letter to the County requesting
additional information based on the February 23, 2021 meeting and requested written
responses within thirty (30) days; and
WHEREAS, on August 10, 2021, the County Executive Officer sent a letter
responding to the March 30, 2021 letter from the LRA indicating an unwillingness to
Resolution 21-01
Page 2 of 4
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
accept an interim lease or LIFOC unless certain conditions are met with an unknown
timeline; and
WHEREAS, the August 10, 2021 letter from the County refers to potential
alternatives to the approved plans that the County would like to discuss. The appropriate
forum for changes in the approved Reuse Plan would be Reuse Plan amendment
proceedings, and the LRA invites the discussion of such alternatives with the County and
others in that context, and
WHEREAS, the LRA held an additional meeting on August 11, 2021 where it
considered the current state of reuse for Reuse Parcel 18; and
WHEREAS, the LRA has determined that action be initiated to (i) remove the
County Regional Park from the MCAS Tustin Reuse Plan, and (ii) consider, review, and
analyze other appropriate alternative uses that may include public park components
amongst other land uses for Reuse Parcel 18.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF TUSTIN ACTING AS THE LOCAL REUSE AUTHORITY FOR FORMER MARINE
CORPS AIR STATION TUSTIN, THAT:
1. The foregoing recitals are hereby incorporated and adopted as the findings of
the City Council acting as the LRA; and
2. The MCAS Tustin Reuse Plan is hereby revised to exclude the County
Regional Park from Reuse Parcel 18, but not to preclude consideration of
Regional or other park uses in connection with future Reuse Plan amendment
proceedings; and
3. The LRA will inform the Navy and DOI of the actions taken and the reasons
such actions were taken, and request Federal revocation of the County
Regional Park PBC for Reuse Parcel 18; and
4. The LRA will work with the Navy to amend the existing City license or seek an
interim lease for Reuse Parcel 18 to ensure the maintenance and security of
Parcel 18.
5. The LRA will commence a Reuse Planning process to consider, review, and
analyze appropriate alternative uses that may include public park components
amongst other land uses for Reuse Parcel 18.
PASSED and ADOPTED by the City Council of the City of Tustin at a special
meeting on the 11 ti, day of August, 2021.
Resolution 21-01
Page 3 of 4
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DocuSigned by:
LETIT �F�14yL/��7Q�}g�j(j� , .
Mayor
ATTEST:
DocuSigned by:
`LV'iCa (�aStti�,a
ERICA` I. DA,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No 21-01 was duly
passed and adopted at a special meeting of the Tustin City Council acting in its capacity
as the Federally designated Local Reuse Authority, held on the 11th day of August, 2021
by the following vote:
COUNCILMEMBER AYES: Clark, Lumbard, Cooper, Gallagher, Gomez (5)
COUNCILMEMBER NOES: (0)
COUNCILMEMBER ABSTAINED: (0)
COUNCILMEMBER ABSENT: (0)
DocuSigned by:
E R I CAMIMMA,
City Clerk
Resolution 21-01
Page 4 of 4
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Office of the City Manager
August 19, 2021
Mr. David Siegenthaler
Regional Program Manager
Federal Lands to Parks
333 Bush Street, Suite 500
San Francisco, CA 94104
David SiegenthalerkNPS.gov
Via email and First -Class Mail
Mr. Charles Perry, PE
Base Closure Manager
Navy Base Realignment and Closure
3300 Nixie Way, Building 50, 2nd Floor
San Diego, CA 92147
Charles. L. Perr):kNavy •mil
RE: Reuse Parcel 18 at Former Marine Corps Air Station (MCAS) Tustin
Dear Mr. Siegenthaler and Mr. Perry:
On August 11, 2021, the City of Tustin (City) acting as the Federally recognized Local Reuse Authority
(LRA) for former Marine Corps Air Station (MCAS) Tustin adopted LRA Resolution 21-01 which revises
the existing Reuse Plan for former MCAS Tustin to remove the County of Orange (County) Regional Park
use from Reuse Parcel 18, and to start a new reuse planning process for Reuse Parcel 18.
As you are aware, the County submitted a Public Benefit Conveyance (PBC) application in 1995 to create
and operate a Regional Park which was approved by the Department of the Interior (DOI). The City
supported the County's PBC application through City Council Resolution 94-20 and included a County
Regional Park on Reuse Parcel 18 in the formal MCAS Tustin Reuse Plan that was ultimately approved in
1996.
In 2012, the County proposed an alternate Program of Utilization (POLI) that proposed changes to the DOI
approved application by seeking additional and more expansive revenue -generating activities to subsidize
the costs of creating and operating the proposed Regional Park. This alternate plan has never been approved
by DOI, thus leaving in place the original 1995 DOI PBC application as the only approved plan for a
Regional Park on Reuse Parcel 18.
The County has never assumed any responsibility for Reuse Parcel 18, unlike the City or all other property
recipients or entities awaiting conveyance of property at the former MCAS Tustin. Since 2012, Reuse
Parcel 18 has experienced rapid physical deterioration, including a partial roof collapse of the North
Hangar. In addition to the physical deterioration of the site and structures, the site has experienced
increasing incidents of trespassing, vagrancy, vandalism, and other illicit activities that impacts the
community and has forced the City to respond at its own risk and cost. Some of these issues were
documented in an Orange County Grand Jury report entitled "What's Happening with the Historic Tustin
Hangars?" dated June 9, 2020.
300 Centennial Way • Tustin, California 92780 • www.tustinca.orQ • 7I4 -573-30I2
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Mr. Siegenthaler and Mr. Perry
August 19, 2021
Page 2
Beyond physical deterioration, the LRA and County have had numerous conversations about alternative
uses for Reuse Parcel 18 since 2012. In these conversations, and in communication with the DOI, the LRA
made it clear that any alternative uses would require a Reuse Plan amendment process, as well as any
necessary California Environmental Quality Act (CEQA) and/or National Environmental Policy Act
(NEPA) review.
On February 23, 2021, the LRA held a public forum inviting all former MCAS Tustin property recipients
(or future property recipients) to present updates on development progress given the 20 years since the
closure of MCAS Tustin. A link to the video of this meeting can be found here:
https://tustin.granicus.com/MediaPlayer.php?view id=5&clip id= 1947. At this meeting, the County
presented updates on several projects, including its status to acquire, develop, and operate a Regional Park
on Reuse Parcel 18. During its comments on the Regional Park, the County indicated an unwillingness to
take an interim license, interim lease, or Lease in Furtherance of Conveyance (LIFOC) to secure and
maintain Reuse Parcel 18 as all other property recipients at former MCAS Tustin have done and also
indicated there is no current timeline, plan, or approved budget for when or how the Regional Park would
be constructed.
Following the February 23 meeting, the LRA sent a letter to the County requesting additional information
based on the County's testimony and requested written responses within thirty (30) days, or April 29,
2021. No response was received until August 10, 2021, where the County indicated it (1) would not accept
an interim lease or license at this time to maintain and secure Reuse Parcel 18; and (2) has no budget,
timeline, or funding source to build the Regional Park or preserve the North Hangar.
Because of the outstanding issues and insufficient responses by the County to the LRA letter, the LRA held a
second public meeting focused on Reuse Parcel 18 on August 11, 2021. The LRA invited the County to
participate in a letter dated July 21, 2021. The agenda, staff report, and communications between the City
and County can be found at this link:
https://tustin.gEanicus.com/GeneratedAgendaViewer.phn?view id=5&clip id=2024. A link to the video
of the meeting can be found at this link:
https://tustin.granicus.com/MediaPlayer.php?view id=5&clip id=2024 . The County declined to
participate in the August 11 meeting to provide more information or to answer questions directly from the
LRA in a public setting.
On August 11, the LRA voted unanimously to approve and/or initiate the following actions based on the
County lack of progress and commitment to building the Regional Park and insufficient responses:
- Adopt LRA Resolution 21-01, removing the County Regional Park use from Reuse Parcel 18
- Inform the Department of the Navy (Navy) and DOI of the LRA intention to adopt a revised Reuse
Plan for Reuse Parcel 18, the reasons such actions were taken, and request that the Navy and DOI
revoke the County PBC for Reuse Parcel 18
- Once Federal revocation of the County PBC for Reuse Parcel 18 occurs, begin a new reuse
planning process for Reuse Parcel 18
- Work with the Navy on amendment to the existing City license or an interim lease for the LRA to
undertake maintenance and security for Reuse Parcel 18
DocuSign Envelope ID: 89AB5F7E-7024-41 E5-8A70-595E64F5D32A
Mr. Siegenthaler and Mr. Perry
August 19, 2021
Page 3
With the adoption of Resolution 21-01, the LRA now respectfully requests that DOI and the Navy formally
revoke the County PBC application. This Federal revocation action will allow the LRA to confidently
initiate a formal reuse planning process for Reuse Parcel 18 where the LRA will consider, review, and
analyze alternative uses that may include park and public uses, and other alternative land uses.
Additionally, the LRA respectfully requests the Navy to tender an enhanced license or interim lease to the
LRA as quickly as possible. This enhanced license or interim lease will allow the LRA, on behalf of the
community, to provide sufficient maintenance and security for Reuse Parcel 18. Specifically, the LRA
requests that the enhanced license or interim lease allow (but does not require) the LRA to:
- Provide on-site security or security equipment
- Reconfigure or add new fencing
- Perform enhanced maintenance in line with the balance of former MCAS Tustin
- Repair or secure buildings (excluding Building 28)
- Demolish buildings to slab only (excluding Building 28)
- Repair or replace hardscape and utility systems (via a PERF, if needed)
- Sublicense or sublease for interim uses
The LRA has given the County abundant opportunity to provide input and answer questions for the public
record. While this LRA action removes the County Regional Park use from Reuse Parcel 18, it does not
preclude the County from participating in the forthcoming reuse planning process for a park or other public
use. In fact, the LRA encourages the County to participate in the reuse planning process as the LRA
evaluates potential alternative uses for the site. This LRA action is to remove a dormant and inactive
intended property use proposal and its recipient as an impediment to progress on Reuse Parcel 18 for the
benefit of the community.
The LRA appreciates your attentiveness to this matter and looks forward to a productive partnership with
DOI and the Navy. Should you have any questions, please contact me at 714-573-3012 or
mwest(C/�,tustinca. org.
Sincerely,
*�/V / WAr
Matthew S. West
LRA Executive Director/ City Manager
Attachment: LRA Resolution 2 1 -01
cc: Tustin City Council Laura Duchnak, Department of the Navy
(via email) Congresswoman Katie Porter Alexander Bethke, Department of the Navy
Nicole Bernard, Assistant City Manager Amy Jo Hill, Department of the Navy
David E. Kendig, City Attorney Elizabeth Larson, Department of the Navy
George Schlossberg, Kutak Rock Kyle Olewnik, Department of the Navy
Christopher Koster, Director of Economic Development