HomeMy WebLinkAboutCC MINUTES 2.18.25Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E
CITY OF TUSTIN REGULAR MEETING
OF THE CITY COUNCIL
John Nielsen, Mayor Pro Tern
Ryan Gallagher, Council Member
Ray Schnell, Council Member
Lee K. Fink, Council Member
FEBRUARY 18, 2025
300 CENTENNIAL WAY, TUSTIN
COUNCIL CHAMBER
VIDEO CONFERENCE
Austin Lumbard, Mayor Aldo E. Schindler, City Manager
Erica N. Yasuda, City Clerk
David E. Kendig, City Attorney
MINUTES OF THE CLOSED SESSION MEETING OF THE CITY COUNCIL
4:30 P.M.
CALL TO ORDER — #3072 at 4:30 p.m.
ROLL CALL — City Clerk
Present: Mayor Austin Lumbard and Council Members Ryan Gallagher, Ray
Schnell and Lee K. Fink
Absent: Mayor Pro Tern John Nielsen (arrived at 5:13 p.m.)
City Clerk: Erica N. Yasuda, City Clerk
Others Present: David E. Kendig, City Attorney; Aldo E. Schindler, City Manager
PUBLIC INPUT — None
CLOSED SESSION UPDATE — City Attorney David E. Kendig: The Council will convene
to discuss Items 3, 4 and 5, including conference with its labor negotiators Derick Yasuda,
Director of Human Resources, and Peter Brown, Liebert Cassidy and Whitmore.
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:
1. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION -
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): (2
cases)
2. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION - Initiation
of litigation pursuant to Government Code § 54956.9(d)(4): (2 cases)
City Council February 18, 2025
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3. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION —
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): (1
case) — related to the fire at the North Hangar owned by the Navy and the release
of hazardous materials therefrom
4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - [Government Code §
54957(b)(1)]
Title: City Manager
5. LABOR NEGOTIATIONS — [Government Code § 54957.61:
Agency
Negotiators:
Derick Yasuda, Director of Human Resources and Peter Brown,
Liebert Cassidy Whitmore
Employee
Tustin Police Officers Association (TPOA)
Organization:
Employee
Tustin Police Management Association (TPMA)
Organization:
Recessed at 4:31 p.m.
MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL
6:00 P.M.
CALL TO ORDER — #3072 at 6:15 p.m.
INVOCATION — Pastor Kamron Zameni, Mariners Church
PLEDGE OF ALLEGIANCE — Council Member Schnell
PRESENTATIONS —
• Working Wardrobes Chief Executive Officer, Bonni Pomush, provided a PowerPoint
presentation.
• Mayor Lumbard presented a proclamation recognizing Black History Month
Proclamation.
PUBLIC INPUT — None
City Council February 18, 2025
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CLOSED SESSION REPORT — City Attorney David E. Kendig: The Council took no
reportable action.
CONSENT CALENDAR 1-9
Mayor Lumbard announced that Item 10 (2025 Commissioner Appointments) was removed
from the agenda and scheduled for the March 4, 2025, City Council meeting.
Public Input for the Consent Calendar — None
It was moved by Council Member Gallagher and seconded by Mayor Pro Tern Nielsen to
approve the Consent Calendar.
Roll Call Vote — City Clerk
Motion carried: 5-0
1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE
AGENDA
Motion: The City Council waived reading in full of all ordinances and resolutions on
the agenda and declared that said titles which appear on the public agenda shall be
determined to have been read by title and further reading waived.
2. APPROVAL OF MINUTES — THE REGULAR MEETING OF THE CITY COUNCIL
HELD ON FEBRUARY 4, 2025.
Motion: The City Council approved the Action Minutes of the City Council Meeting
held on February 4, 2025.
3. RATIFICATION OF PAYROLL AND DEMANDS
The City Council has approved the use of Government Code Section 37208 to
expedite the payment of City of Tustin obligations that are in accordance with the
approved budget or continued operations authorizations.
Motion: The City Council approved Payroll in the amount of $1,077,024.25 and
Demands in the amount of $6,247,141.18.
4. FISCAL YEAR 2023-2024 AUDIT REPORTS
The financial statement audit for the 2023-2024 fiscal year has been completed by
Davis Farr LLP, which reflects an "unmodified", or clean opinion that the City's
financial statements for the fiscal year are presented fairly. Davis Farr LLP discussed
the results of the audit with the Audit Commission on January 23, 2025.
City Council February 18, 2025
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The City's investment portfolio which includes investments in US Treasury bonds,
agency securities, corporate bonds, and local government investment pools of
California Asset Management Program (CAMP) and Local Agency Investment Fund
(LAIF) have also been reviewed as part of the audit.
Motion: The City Council received and filed the fiscal year 2023-2024 audit reports.
Fiscal Impact: The total contractual cost of the annual audit with Davis Farr LLP is
$45,300. Of this amount, $9,060 is charged to the Water Enterprise Fund, and
$36,240 is charged to the General Fund. In addition, $3,300 was paid to CalPERS
and charged to the General Fund for the required GASB 68 information related to
pension liabilities and expenses.
5. APPROVE AMENDMENT NO. 2 TO CONSULTANT SERVICES AGREEMENT
WITH NMG GEOTECHNICAL, INC.
Staff is recommending the City Council approve Amendment No. 2 to Consultant
Services Agreement with NMG Geotechnical, Inc. for additional design and
construction services for the Tustin Legacy Neighborhood "D" South Phase 2
Infrastructure (Capital Improvement Project No. 70256) Construction Project —
Package No. 1. The project is currently under construction and additional
geotechnical services are required to complete and close out the project.
Recommendation: Approved Amendment No. 2 to Consultant Services Agreement
with NMG Geotechnical, Inc. for design and construction services in an amount not
to exceed $39,464.00, and authorized the City Manager to execute the Agreement
on behalf of the City.
Fiscal Impact: Sufficient funds have been appropriated in the Fiscal Year 2024-2025
Capital Improvement Program Budget. The proposed Amendment No. 2 to
Consultant Services Agreement with NMG Geotechnical, Inc includes a not to exceed
total compensation amount of $39,464.00.
6. LEGISLATIVE UPDATE
Consideration of 2025 Legislative Platform and updates on legislative activity at the
state and federal level.
Motion: The City Council took the following actions:
1. Adopted 2025 Legislative Platform
2. Received and filed legislative update prepared by Townsend Public Affairs
Fiscal Impact: There was no fiscal impact associated with this item.
City Council February 18, 2025
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7. SECOND READING AND ADOPTION OF ORDINANCE NO. 1560 -
DEVELOPMENT AGREEMENT 2024-0007, AMENDING DEVELOPMENT
AGREEMENT 2020-0001 REGARDING TERMS AND PUBLIC BENEFIT
Adoption of Ordinance No. 1560 approves Development Agreement (DA) 2024-0007
amending the term and sponsorship contributions previously established in DA 2020-
0001. The proposed amendment will extend the term of the agreement and establish
a methodology for calculating the annual sponsorship contribution.
Motion: The City Council had second reading by title only and adoption of Ordinance
No. 1560.
ORDINANCE NO. 1560
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0007
AMENDING THE TERM AND SPONSORSHIP CONTRIBUTION PREVIOUSLY
ESTABLISHED BY DEVELOPMENT AGREEMENT 2020-0001 BETWEEN THE
CITY OF TUSTIN AND TUSTIN AUTO CENTER MERCHANTS ASSOCIATION FOR
A FREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT THE TUSTIN AUTO
CENTER
Fiscal Impact: The amendment would have a positive fiscal impact, as it includes
an escalated financial contribution from the Tustin Auto Center Merchants
Association based on the average annual growth rate of car sales tax, providing
proportional increases to the City's public benefit funding for Parks and Recreation
events and programming.
8. SECOND READING AND ADOPTION OF ORDINANCE NO. 1556 - CODE
AMENDMENT 2024-0005 TO IMPROVE THE EFFICIENCY AND CLARITY OF THE
CITY'S ENTITLEMENT PROCESSES RELATED TO ALCOHOL PERMITS, SOIL
REMEDIATION, MURALS AND GRAPHICS, AND TEXT ERRORS
Adoption of Ordinance No. 1556 (Code Amendment 2024-0005) approves a City -
initiated update to Section 9299 of Part 9 (Administration) of Chapter 2 (Zoning) of
Article 9 (Land Use) of the Tustin City Code. The amendments, part of the ongoing
"Streamline Tustin" program, aim to enhance the efficiency, clarity, and modernity of
the Zoning Code in alignment with the City's Strategic Plan.
Motion: The City Council had second reading by title only and adoption of Ordinance
No. 1556.
ORDINANCE NO. 1556
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
AMENDING SECTION 9299 OF PART 9 (ADMINISTRATION) OF CHAPTER 2
(ZONING) OF ARTICLE 9 (LAND USE) OF THE TUSTIN CITY CODE, CODE
AMENDMENT (CA) 2024-0005 TO IMPLEMENT THE STREAMLINE TUSTIN
PROGRAM
City Council February 18, 2025
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Fiscal Impact: The amendments are anticipated to have a neutral to positive fiscal
impact on the City's General Fund.
9. SECOND READING AND ADOPTION OF ORDINANCE NO. 1561 - APPROVING
DEVELOPMENT AGREEMENT 2024-0003 BETWEEN THE CITY OF TUSTIN AND
IRVINE COMPANY FOR THE DEVELOPMENT OF A 19.4-ACRE SITE WITHIN
TUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334
AFFORDABLE UNITS
Adoption of Ordinance No. 1561 approves Development Agreement (DA) 2024-0003
to facilitate the development of a total of 1,336 apartment units, which includes 334
affordable units within Neighborhood D South of the Tustin Legacy Specific Plan and
conveyance of a 19.4-acre project site.
Motion: The City Council had second reading by title only and adoption of Ordinance
No. 1561.
ORDINANCE NO. 1561
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
APPROVING DEVELOPMENT AGREEMENT 2024-0003 BETWEEN THE CITY OF
TUSTIN AND IRVINE COMPANY FOR THE DEVELOPMENT OF A 19.4-ACRE SITE
WITHIN TUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334
AFFORDABLE UNITS
Fiscal Impact: The applicant paid the required application fees for the proposed
project. The fiscal impact resulting from the sale of the property, and other actions
related to the sale, will be addressed within the City Council's consideration of the
project's Disposition and Development Agreement (DDA).
10. OMITTED
PUBLIC HEARING ITEM 11
11. CODE AMENDMENT 2024-0006, SPECIFIC PLAN AMENDMENTS 2024-0005
AND 2024-0006 — MODIFICATIONS TO THE MULTI -FAMILY RESIDENTIAL
PARKING & PRIVATE STORAGE STANDARDS CITYWIDE, AND IN THE
DOWNTOWN COMMERCIAL CORE & RED HILL AVENUE SPECIFIC PLANS
On October 22, 2024, the Planning Commission recommended that the City Council
adopt amendments to the multi -family residential parking and private storage
requirements in the Tustin City Code, Downtown Commercial Core Specific Plan and
Red Hill Avenue Specific Plan. The subject amendments implement policy actions
addressing potential barriers to housing production identified in an assessment of the
Downtown Commercial Core Specific Plan and Red Hill Avenue Specific Plan, which
were presented to the City Council in December 2023.
The proposed amendments:
City Council February 18, 2025
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Implement a scalable parking requirement for multi -family residential
development based on the number of bedrooms per unit, subject to the
development standards within the Downtown Commercial Core Specific Plan,
Red Hill Avenue Specific Plan and Tustin City Code.
2. Allow tandem parking for resident parking spaces citywide. Tandem parking
would continue to be prohibited for guest parking.
3. Remove the requirement for private storage areas within the Downtown
Commercial Core Specific Plan and Red Hill Avenue Specific Plan, and
remove the citywide requirement for private storage cabinets within carports.
Public Hearing opened at 6:33 p.m.
Associate Planner Jorge Maldonado provided a PowerPoint presentation.
Public Input — None
Public Hearing closed at 6:39 p.m.
It was moved by Mayor Pro Tern Nielsen and seconded by Mayor Lumbard to:
Conduct first reading by title only for Ordinance No. 1553, modifying the
multifamily residential parking and private storage requirements in the
Downtown Commercial Core Specific Plan and as specified (Specific Plan
Amendment 2024-0005), and set the second reading for the next available
City Council meeting.
2. Conduct first reading by title only for Ordinance No. 1554, modifying the
multifamily residential parking and private storage requirements in the Red Hill
Avenue Specific Plan as specified (Specific Plan Amendment 2024-0006),
and set the second reading for the next available City Council meeting.
3. Conduct first reading by title only for Ordinance No. 1555, amending the
multifamily residential parking and carport storage requirements in the Tustin
City Code as specified (Code Amendment 2024-0006), and set the second
reading for the next available City Council meeting.
Roll Call Vote — City Clerk
Motion carried: 5-0
ORDINANCE NO. 1553
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING SPECIFIC PLAN AMENDMENT (SPA) 2024-0005 TO
AMEND THE DOWNTOWN COMMERCIAL CORE SPECIFIC PLAN (SP-12) TO
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MODIFY MULTI -FAMILY RESIDENTIAL PARKING AND PRIVATE STORAGE
REQUIREMENTS
ORDINANCE NO. 1554
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING SPECIFIC PLAN AMENDMENT (SPA) 2024-0006 TO
AMEND THE RED HILL AVENUE SPECIFIC PLAN (SP-13) TO MODIFY MULTI-
FAMILY RESIDENTIAL PARKING AND PRIVATE STORAGE REQUIREMENTS
ORDINANCE NO. 1555
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AMENDING VARIOUS SECTIONS OF TUSTIN CITY CODE
ARTICLE NINE (LAND USE) TO MODIFY MULTI -FAMILY RESIDENTIAL PARKING
AND CARPORT STORAGE REQUIREMENTS (CODE AMENDMENT (CA) 2024-
0006)
REGULAR BUSINESS ITEMS 12 - 13
12. MID -YEAR BUDGET UPDATE FOR FISCAL YEAR 2024-2025
This report provides the City Council with a Mid -Year Budget Review of Fiscal Year
2024-2025, which projects General Fund operating revenues to be $1.57 million
higher than the adopted budget and General Fund operating expenditures to be $1.5
million higher than the amended budget. The report also projects the General Fund's
reserves to be $29 million as of June 30, 2025 (or 29% of General Fund operating
expenditures), excluding the Navy North Hangar Fire incident responses, which the
City anticipates a full reimbursement from the Navy. The projected reserve level
continues to meet the City Council's minimum reserve policy of 15%.
Director of Finance Jennifer King provided a PowerPoint presentation.
Public Input — None
It was moved by Mayor Lumbard and seconded by Council Member Schnell to:
1. Authorize an increase of $1,569,996 to the General Fund's revenue budget
based on projected amounts outlined in this report;
2. Authorize an increase of $5,045,703 to the revenue budget of the Backbone
Fee Fund for development impact fees received;
3. Authorize an increase of $17,135,127 to the revenue budget of the Land Sale
Proceeds Fund for development profit participation revenue received;
4. Authorize supplemental appropriations and revenue adjustments for other
funds as outlined in this report
City Council February 18, 2025
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5. Approve carryover budgets and authorize supplemental appropriations for
capital projects outlined in this report;
6. Approve carryover budgets and authorize supplemental appropriations to the
capital and operation budget of the Water Funds based on amounts outlined
in this report;
7. Approve carryover adjustments of revenue budget of $51,366,047 and
expenditure appropriation of $16,287,482 for the Navy North Hangar Fire
incident responses authorized under the Navy's Co-operative Agreement and
subsequent amendments one to five;
8. Authorize an increase to General Fund's appropriations for City Council
($51,470), City Manager/Real Property ($441,424), Finance ($1,670), Human
Resources ($88,330), Community and Economic Development ($90,217),
Public Works ($208,798), Police Department ($610,568), and Parks and
Recreation ($189,317);
9. Adopt Resolution No. 25-11, updating the Citywide Salary Schedule and
authorizing staffing changes to the Position Control List enclosed with the
attached Mid -Year Budget Review report; and,
10. Approve revenue budget and expenditure appropriation of $15,300,000 for the
Navy North Hangar Fire incident above -ground cleanup work authorized
under the sixth amendment to the Navy's Co -Operative Agreement.
Roll Call Vote — City Clerk
Motion carried: 5-0
RESOLUTION NO. 25-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
UPDATING THE CITYWIDE SALARY SCHEDULE
Fiscal Impact: The General Fund's Mid -Year Review projects that the revenues and
expenditures are experiencing similar increases, resulting in a minor net change to
its fund balance as of June 30, 2025. The Water Funds' Mid -Year Review projects a
$1.6 million positive change to its net position by June 30, 2025 before capital
expenditures. The proposed supplemental appropriations for other funds will be
covered by existing revenues, and available fund balances. As for the proposed
supplemental appropriations for capital projects, they will be funded from available
fund balances.
13. PARKS & RECREATION DEPARTMENT ANNUAL REPORT 2024
The Parks & Recreation Department Annual Report summarizes the Department's
activities throughout 2024.
City Council February 18, 2025
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Director of Parks and Recreation Chad Clanton provided a PowerPoint presentation.
Public Input — None
The City Council received and filed this report.
Fiscal Impact: There was no fiscal impact associated with this item.
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
City Manager Aldo E. Schindler
Announced the construction of the new 50,000 square foot Kia Dealership had begun; the
building evaluation is 4.5 million dollars; construction is slated to be completed by the fall of
2025 with the grand opening occurring shortly after.
Announced under the guise of Streamline Tustin, the Community Development Department
has implemented a new e-signature option for building permits; homeowners, business
owners, and contractors can now pull and sign their permits electronically; an inspector will
deliver their permit at the first inspection; this new feature builds upon the enhancement of
Streamline Tustin.
Councilmember Fink
Thanked Mayor Lumbard and city staff for the Legislative Update report; would like to
continue to monitor and update legislative issues; these issues address Tustin as a city.
Thanked city staff for the information provided regarding the commission appointments,
which will be on the next City Council agenda.
Thanked Council Member Gallagher for the Development Study report and the issues
holding the City back from moving forward.
Mentioned the effectiveness of the parking permit program; announced that this program
has helped the City tremendously.
Thanked the Audit Commission for going through the 2024-2025 Mid -Year Budget and
understanding the audit; thanked city staff for putting the report together.
February 8
Attended the Tustin Community Foundation 10th Annual Paper Football Challenge; was the
demonstration referee at the event; announced Mayor Pro Tern Nielsen also participated as
a demonstration player.
Announced the Tustin Community Foundation will be hosting the 12th Annual Sip & Stroll
event on Saturday, February 22nd; encouraged everyone to buy tickets to attend the event.
Highlighted two businesses in Tustin: Dr. Andrea L. Fortes, DDS and Premiere Dry
Cleaners; mentioned Dr. Andrea L. Fortes, DDS is his current dentist and Dr. Anthony
City Council February 18, 2025
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Mumolo, DDS was his dentist in Tustin while growing up; reminded everyone there are good
businesses in Tustin.
Council Member Schnell
February 12 and 18
Announced visited a few Tustin businesses; met with EBS Realty Group and IMpowered
Fitness; IMpowered Fitness is a new business which had their Ribbon Cutting ceremony on
January 30th; both businesses had great things to say regarding having their business in
Tustin as well as the great service city staff provides.
February 13
Attended the Transportation Corridor Agencies (TCA) Board meeting; welcomed new Board
of Directors, William Go City of Irvine, Janice Lim City of Yorba Linda, and Erica Pezold
City of Laguna Hills; discussed the Pacifica Building improvements which is the corporate
headquarters of TCA; announced TCA did an early bond paydown of $200 million dollars
which will save the organization $203 million dollars over the life of the note.
Council Member Gallagher
Attended the Orange County Sanitation District Board meetings; announced the item
discussed most relevant to the City of Tustin was the discussion on cyber security; was
interesting and enlightening to hear how the Orange County Sanitation District is using
cyber security to protect water systems with Supervisory Control and Data Acquisition
system (SCADA) and outside internet; is happy to share the information with city staff.
Announced National Engineers Week from February 16 — February 22.
Announced is speaking on Friday, February 21st to the Pre -Kindergarten class at Red Hill
Lutheran School.
Mayor Pro Tem Nielsen
February 6
Attended the Tustin Host Lions Club Student Speaker Contest; the theme of the contest
was Artificial Intelligence: Friend or Foe?; mentioned the participants are students from the
different high schools within the Tustin Unified School District; the students did an amazing
job with public speaking; was a great event.
February 8
Attended the Tustin Community Foundation 10th Annual Paper Football Challenge; played
for the Tustin Host Lions Club team; was happy to participate in a demonstration against
former Council Member Barry W. Cooper; announced their team placed third overall in the
challenge; had a wonderful time; there were 40 teams competing for their specific non-profit
organization; was a great event.
City Council February 18, 2025
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Mayor Lumbard
Announced how robust the items on the February 18th Consent Calendar was; a lot of
projects have been in the works; these projects were approved at the previous City Council
meeting as well as this evening's City Council meeting; thanked city staff for moving the
projects forward.
ADJOURNED at 7:37 p.m. The next meeting is scheduled on Tuesday, March 4, 2025, for
the Closed Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.
Signed by:
AU PNDLELM(BARD,
Mayor
DS
FSigned by:
%V C. U-Sa.
E R PCA°WYASU DA,
City Clerk
City Council
Meeting Minutes
February 18, 2025
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