Loading...
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 Meeting Minutes Page 1 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 2 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 3 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 4 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 5 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 6 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 City Council February 18, 2025 Meeting Minutes Page 7 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 8 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 9 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 10 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Meeting Minutes Page 11 of 12 Docusign Envelope ID: 8FE216FD-5C23-4F1B-B56C-D38F6325CF8E 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 Page 12 of 12