HomeMy WebLinkAboutCC MINUTES 3.18.25Docusign Envelope ID: 61 ABA651-71 1 B-4682-8E58-6E98DBFCF851
CITY OF TUSTIN REGULAR MEETING MARCH 18, 2025
OF THE CITY COUNCIL 300 CENTENNIAL WAY, TUSTIN
COUNCIL CHAMBER
VIDEO CONFERENCE
John Nielsen, Mayor Pro Tern
Ryan Gallagher, Council Member Austin Lumbard, Mayor Aldo E. Schindler, City Manager
Ray Schnell, Council Member Erica N. Yasuda, City Clerk
Lee K. Fink. Council Member David E. Kendia, Citv Attornev
MINUTES OF THE CLOSED SESSION MEETING OF THE CITY COUNCIL
4:30 P.M.
City Clerk Erica Yasuda announced the Closed Session Meeting was cancelled.
MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL
6:00 P.M.
CALL TO ORDER — #3074 at 6:00 p.m.
PRESENTATION OF COLORS, INVOCATION AND PLEDGE OF ALLEGIANCE —
American Legion
ATTENDANCE — City Clerk Erica Yasuda announced that Mayor Lumbard and Council
Member Schnell were absent.
PUBLIC INPUT — None
CONSENT CALENDAR 1-13 —
Council Member Fink requested to pull Item No. 6.
The City Clerk announced that the City Council received eight public comments that were
distributed to the Council and made available to the public on the website.
Public Input for Consent Calendar Items 1-5 and 7-13 — None
It was moved by Council Member Gallagher and seconded by Council Member Fink to pull
City Council March 18, 2025
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Item 6 and approve the balance as recommended by staff.
Roll Call vote — City Clerk
Motion carried: 3-0
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 MARCH 4, 2025.
Motion: The City Council approved the Action Minutes of the City Council Meeting
held on March 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 $1,015,662.70 and
Demands in the amount of $6,044,434,82.
4. APPROVAL OF CONTRACT WITH HEWLETT PACKARD ENTERPRISE
COMPANY FOR A NEW DATA STORAGE SOLUTION
The City uses Dell SC, also known as Compellent, for data storage. The Compellent
platform has reached the end of its life and Dell will no longer provide technical
support after 2026. Staff have identified a replacement solution and are requesting
the City Council's approval to execute a contract with Hewlett Packard Enterprise for
a new data storage solution.
Motion: The City Council approved Resolution 25-20 to authorize the City Manager
to execute necessary contract documents with Hewlett Packard Enterprise for a new
data storage solution.
RESOLUTION NO. 25-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
AUTHORIZING USE OF THE NATIONAL ASSOCIATION OF STATE
PROCUREMENT OFFICIALS (NASPO) VALUEPOINT PURCHASING PROGRAM
TO PURCHASE DATA STORAGE EQUIPMENT
City Council March 18, 2025
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Fiscal Impact: The proposed Hewlett Packard data storage solution has a no -to -
exceed amount of $325,000. Sufficient budget has been appropriated in the Fiscal
Year 2024-2025 Information Technology Fund to support this project.
5. AUTHORIZE USE OF THE OMNIA PARTNERS PURCHASING PROGRAM FOR
THE POLICE DEPARTMENT IMPROVEMENTS PROJECT
Staff is requesting authorization to utilize OMNIA Partners Purchasing Program to
acquire furniture for the Police Department Improvements Project.
Motion: The City Council:
1. Adopted Resolution No. 25-14 authorizing use of the OMNIA Partners
Purchasing Program to purchase furniture and installation services for the
Police Department Improvements Project in the not -to -exceed amount of
$356,007.57; and
2. Authorized the City Manager and the City Clerk to execute the contract
documents on behalf of the City.
RESOLUTION NO. 25-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
AUTHORIZING USE OF THE OMNIA PARTNERS PURCHASING PROGRAM TO
PURCHASE FURNITURE AND INSTALLATION SERVICES FOR THE POLICE
DEPARTMENT IMPROVEMENTS PROJECT, CIP NO. 10086
Fiscal Impact: Sufficient funds have been appropriated in the Fiscal Year 2024-2025
General Fund Capital Improvement Program Budget for the Police Department
Improvements Project, Capital Improvement Program project 10086.
6. DISPOSITION AND DEVELOPMENT AGREEMENT WITH TUSTIN LEGACY
ACQUISITION LLC (IRVINE COMPANY) FOR PORTIONS OF DISPOSITION
AREAS 2113, 2C AND 8 AT TUSTIN LEGACY
Request for authorization to approve the Disposition and Development Agreement
(DDA) between Tustin Legacy Acquisition LLC (Irvine Company) and the City for the
development of a residential apartment community consisting of 1,336 rental units
on approximately 19.4 acres with a total of 25% of the residential units affordable to
lower income households. The DDA specifies the terms and conditions under which
the City owned property, known as portions of Disposition Areas 2B, 2C and 8, and
bounded by Warner Avenue, Legacy Road, Tustin Ranch Road and Compass
Avenue in Planning Areas 13 and 14 of Tustin Legacy, will be conveyed to and
developed by Tustin Legacy Acquisition LLC. The purpose of the DDA is to
implement the Reuse Plan for Marine Corps Air Station Tustin (MCAS Tustin) and
the Specific Plan for Tustin Legacy through the development and maintenance of the
property.
Public Input — Laura Keirstead
City Council March 18, 2025
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It was moved by Council Member Gallagher and seconded by Council Member Fink
that the City Council:
Authorize the City Manager to execute the DDA between Tustin Legacy
Acquisition LLC and the City in the form attached hereto subject to any non -
substantive modifications as may be recommended by the City's special real
estate counsel or the City Attorney; and
2. Authorize the City Manager to take all actions and execute all other
agreements necessary or appropriate to implement the DDA.
Roll Call Vote — City Clerk
Motion Carried: 3-0
Fiscal Impact: The property will be disposed of in a single takedown for a purchase
price of $42,100,000.00. In addition to the purchase price, Tustin Legacy Acquisition
LLC will also pay to the City a Project Fair Share Contribution of $9,584,714.53 to
fund backbone infrastructure improvements at Tustin Legacy. A brokerage
commission of 1 % of the purchase price will be paid by Tustin Legacy Acquisition
LLC to the City's broker, CBRE, at the close of escrow. Upon execution of the DDA,
Tustin Legacy Acquisition LLC will submit a $5,000,000.00 good faith deposit into
escrow, which will be applicable towards the purchase price at the close of escrow.
The Tustin Unified School District (TUSD) created Community Facilities District
(CFD) 15-2 for portions of Tustin Legacy to fund new facilities such as the new middle
school and high school (Legacy Magnet Academy). The source of funds for
constructing facilities are: 1) statutory and development fees collected when building
permits are issued and 2) Community Facilities District fees collected on a project -
by -project basis either at the time of conveyance to a developer or assessed to the
property owners in the form of bonds. The transaction has been structured to allow
the developer/owner to assume the obligation of paying special taxes associated with
bonding under CFD 15-2; however, the City maintains the option, in its sole
discretion, to make a prepayment of an agreed upon sum at the close of escrow to
release the lien of CFD 15-2 on the subject property.
Negotiation costs, such as legal, third -party consultants and staff costs incurred by
the City are reimbursed by Tustin Legacy Acquisition LLC in accordance with the
Exclusive Negotiation Agreement (ENA). Upon execution of the DDA, Tustin Legacy
Acquisition LLC shall submit an additional City Costs Deposit to bring the deposit
account balance up to $50,000.00 to pay for the City's staff costs and third -party out-
of-pocket expenses incurred by the City in implementing the DDA through issuance
of a final Certificate of Compliance or in the event the DDA is terminated prior to
conveyance. Tustin Legacy Acquisition LLC shall replenish the City Costs Deposit as
needed to cover all of the City's Transaction Expenses.
This project will be annexed into a future Zone 3 of the City Community Facilities
District 18-01 prior to close of escrow, which has been established to cover service
costs at Tustin Legacy (police and fire; recreation program services; maintenance of
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parks, streets, sidewalks and drainage facilities) due to the discrepancy in property
tax revenue (3% of the basic levy (1.0%) at Tustin Legacy versus approximately
10.5% City-wide). The Rate and Method of Apportionment specific to this project will
require City Council consideration and approval at a later date. The negotiated rate
attributable to market rate apartments will be $1,364.28 per dwelling unit with
affordable dwelling units exempted. The rate will escalate annually based on a
specific Consumer Price Index with a minimum annual escalation of 2% and a
maximum of 3%.
7. 2023-2024 CERTIFIED LOCAL GOVERNMENT ANNUAL REPORT
The City of Tustin is certified by the State of California to carry out the National
Historic Preservation Act of 1966. As a Certified Local Government (CLG), the City
is required to submit to the California State Office of Historic Preservation an annual
report reflecting the participation and qualifications of the City's Commissioners and
information related to historic preservation actions, activities, and programs. The City
of Tustin's 2023-2024 Certified Local Government Annual Report (Attachment 1)
reflects a reporting period of October 1, 2023, through September 30, 2024.
Motion: The City Council:
• Received and filed the 2023-2024 CLG Annual Report; and
• Directed staff to forward the Annual Report to the State Office of Historic
Preservation.
Fiscal Impact: All activities completed during this reporting period received City
Council approval and budget appropriation.
8. 2024 HISTORIC AND CULTURAL RESOURCES ADVISOR ANNUAL REPORT
AND 2025 HISTORIC AND CULTURAL RESOURCES ADVISOR WORK
PROGRAM
This report provides the City Council with the required annual report summarizing the
accomplishments and actions taken by the Planning Commission, acting as the
Historic and Cultural Resources Advisor, during the 2024 calendar year and the
establishment of the 2025 annual work program.
Motion: The City Council received and filed the 2024 accomplishments shown in this
report and the 2025 Historic and Cultural Resources Advisor Work Program, as
described in Attachment C.
Fiscal Impact: All activities completed during the 2024 calendar year received City
Council approval and budget appropriation.
9. RESOLUTION DETERMINING THE NEED TO CONTINUE THE PROCLAIMED
LOCAL EMERGENCY RELATED TO THE NAVY NORTH HANGAR
City Council March 18, 2025
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At its meeting on November 10, 2023, the City Council ratified the Acting City
Manager's Proclamation of Local Emergency related to the fire at the Navy's North
Hangar and release of chemicals of public health concern, including asbestos. At a
special meeting of the City Council on January 9, 2024, and at its regular meetings
on March 5, 2024, April 16.2024, June 4, 2024, June 18, 2024, July 16, 2024, August
20, 2024, October 15, 2024, December 3, 2024, and January 21, 2025, the Council
reviewed and determined the need to continue the local emergency. This item
recommends that the City Council once again review and determine that the need
exists to continue the local emergency, as required by State law.
Motion: The City Council adopted Resolution 25-19 determining the need exists to
continue the local emergency related to the fire and release of chemicals of public
health concern from the Navy's North Hangar, in the form attached hereto as
Attachment 2.
RESOLUTION 25-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
DETERMINING THE NEED TO CONTINUE LOCAL EMERGENCY RELATED TO
FIRE AND RELEASE OF HAZARDOUS MATERIALS FROM NAVY NORTH
HANGAR.
Fiscal Impact: There was no direct impact from a determination that a local
emergency continues to exist. However, the proclamation of emergency may aid the
City in qualifying for emergency assistance from Federal, State and local agencies in
unknown amounts.
10. 2024 ANNUAL REPORT ON THE IMPLEMENTATION OF THE GENERAL PLAN
AND HOUSING ELEMENT
The California Government Code requires the City Council to annually review the
City's progress in implementing the Tustin General Plan, with specific emphasis on
the Housing Element. This includes the progress in meeting Tustin's share of regional
housing needs, and Tustin's efforts to remove barriers that restrict housing
development, maintenance, and improvement.
With Council authorization, staff will forward the General Plan Annual Report and
Housing Element Progress Report to the California Department of Housing and
Community Development and Governor's Office of Land Use and Climate Innovation,
as required by the California Government Code.
Motion: The City Council received and filed the General Plan Annual Report and the
Housing Element Progress Report, and authorized staff to submit it to the Governor's
Office of Land Use and Climate Innovation and California Department of Housing
and Community Development.
Fiscal Impact: There was no fiscal impact associated with this item.
City Council March 18, 2025
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11. 2024 TUSTIN LEGACY SPECIFIC PLAN MITIGATION MONITORING AND
REPORTING PROGRAM ANNUAL REPORT
The City Council annually reviews its progress in mitigating environmental impacts
associated with the development of the former Marine Corps Air Station Tustin, which
is currently undergoing redevelopment in accordance with the Tustin Legacy Specific
Plan. This annual review is based on documents prepared pursuant to the California
Environmental Quality Act, including the Program Final Environmental Impact
Statement/Environmental Impact Report for the Disposal and Reuse of Marine Corps
Air Station Tustin, subsequent Supplementals and Addendums to the Environmental
Impact Reports, and their Mitigation Monitoring and Reporting Programs.
Motion: The City Council received and filed the Tustin Legacy Annual Mitigation
Monitoring Status Report.
Fiscal Impact: There was no fiscal impact associated with this item.
12. SECOND READING AND ADOPTION OF ORDINANCE NO. 1563— COMMISSION
APPOINTMENT PROCESS
California law provides that an elected Mayor, with the approval of the City Council,
shall make all appointments to boards, commissions, and committees unless
otherwise specifically provided by statute. Adoption of Ordinance No. 1563 conforms
the provisions in the Tustin City Code regarding appointments to the City
commissions to the requirements of State law.
Motion: The City Council had second reading by title only and adopted Ordinance
No. 1563.
ORDINANCE NO. 1563
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, COMMISSION APPOINTMENT PROCESS IN THE TUSTIN CITY
CODE
Fiscal Impact: There was no fiscal impact associated with this item.
13. SELECTION OF A COMMERCIAL REAL ESTATE BROKER FOR MARKETING
AND SOLICITATION SERVICES FOR PLANNING AREA 10 OF THE PACIFIC
CENTER EAST SPECIFIC PLAN
Request for selection of a commercial real estate broker to provide marketing and
solicitation services for Planning Area 10 of the Pacific Center East Specific Plan
comprised of approximately 11 acres of City -owned real property.
Motion: Authorized the City Manager to negotiate and execute a Listing Agreement
with Jones Lang LaSalle IP, Inc. (JLL), subject to non -substantive additions or
modifications as may be deemed necessary and/or recommended by the City
Attorney.
City Council March 18, 2025
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Fiscal Impact: There will be no impact to the General Fund given that commission
to a commercial real estate broker is paid by the buyer or lessee at close of escrow
on a land sale or execution of a ground lease. However, the following tiered
commission structure has been negotiated with the recommended broker, JLL, which
is consistent with industry standards.
Land Sale:
3.0% of gross purchase price up to the first $10,000,000.00
2.0% of gross purchase price between $10,000,000.00 to $20,000,000.00
1.0% of gross purchase price exceeding $20,000,000.00
Ground Lease:
4.0% of the total lease payments for Years 1-5
2.0% of the total lease payments for Years 6-10
*Commission to be capped at first 10 years of ground lease payments.
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
City Manager Aldo E. Schindler
Provided an update regarding the Heideman School Park project which is a joint project
with the Tustin Unified School District; a fifty percent construction design stage has been
reached for the project; the relevant plan check has been completed; plans will be seen
again at ninety percent completion in the next three to four months; still on track and working
within the project timeline.
Welcomed the new Tustin Police Chief, Sean Thuilliez; his first day with the City of Tustin
was Tuesday, March 18, 2025; the Police Chief Swearing -In Ceremony is scheduled for
Monday, March 24, 2025, at the Tustin Community Center at the Market Place at 10:00 AM.
City Attorney, David E. Kendig
Reported there was no Closed Session Meeting of the City Council on March 18, 2025.
MAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND REPORTS
Councilmember Fink
Reported March is Women's History Month; announced the Tustin Area Historical Society
released a video on the women in Tustin who had an impact in women's sports; the video
highlights Evelyn Furtsch Ojeda who was the first woman in Orange County to receive an
Olympic medal at the 1932 Olympics in the 4x100 meter relay; Caitlin Lowe who won a
silver medal with the 2008 Olympic Women's Softball Team; Brittany Hayes who won a
silver medal with the 2008 Olympic Women's Water Polo Team; and Mary Haggerty who
City Council March 18, 2025
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played for the University of California Los Angeles Women's Basketball Team and was the
head coach for the Women's Basketball Team at Chapman University; the video was put
together by Donna Marsh Peery; encouraged everyone to watch the video.
March 8
Attended the Bark Barracks at Tustin Legacy Park Grand Opening; was a wonderful event
and is a great park for a dog park.
NAarr,h 1 r,
Attended the Orange County Fire Authority Open House event; thanked the Orange County
Fire Authority and Fire Chief Brian Fennessy for hosting a great event.
March 13
Attended the Orange County Waste and Recycling, Waste Management Commission;
discussed the Waste Infrastructure System Enhancement (WISE) agreement, which is a
tipping fee for waste hauling; announced these fees can potentially affect trash rates going
forward; understands the City is complying with California's Senate Bill 1383 on organic
waste recycling.
March 18
Attended the Oh Bloom Gyn Ribbon Cutting and One -Year Anniversary Ceremony.
Announced Assemblywoman Cottie Petrie -Norris is hosting a Women of the Year event on
March 27th; Sirisha Bandla, Vice President of Government Affairs and Research Operations
for Virgin Galactic, will be recognized at the event.
Announced Senator Dr. Steven Choi is hosting a Women of the Year event on March 28th.
Announced Operation Warm Wishes will be hosting an Open House on March 31st from
5:00 PM-7:00 PM.
Announced he is glad to hear the Heideman School Park project is progressing; is hopeful
other school sites can be considered for a similar project.
Council Member Gallagher
March 8
Attended the Bark Barracks at Tustin Legacy Park Grand Opening; was an amazing event;
it was great to see so many people attending the event; thanked the Real Property
Department, Parks and Recreation Department, the Public Works Department, and the
Commissions for working together to have such a wonderful park built; thanked Deputy
Director of Real Property, Ryan Swiontek for his hard work.
Welcomed the new Tustin Police Chief, Sean Thuilliez.
Mayor Pro Tem Nielsen
NAarr.h R
City Council March 18, 2025
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Attended the Tustin Senior Center Advisory Board meeting; discussion topics included:
• Concerns with parking
• Bingo
• Casino Night
• Spring Egg Hunt event
• Mother's Day Luncheon; and
• Meals on Wheels of Orange County program
Stated the Tustin Area Senior Center has wonderful volunteers working at the facility.
March 7
Met with George Boutros Government Affairs Manager for the Orange County Business
Council; discussed what is going on with the local economy.
KAarrh A
• Announced was unable to attend the Bark Barracks at Tustin Legacy Park Grand
Opening; heard it was an amazing event.
• Attended the free Vision Screening event held at Century High School in Santa Ana;
reported at least 325 people left the screening with a free pair of prescription glasses; was
an amazing event.
• Attended the Orange County Council, Scouting America, Annual Council Celebration
Dinner; was a great event; honored the 130 Eagle Scouts that were in attendance.
March 11
Attended the Tustin Host Lions Club Laminating Event at the Tustin Area Senior Center;
was a huge turnout of participants.
KAarrh 19
Attended former Tustin Police Chief Stu Greenberg's Going Away Luncheon; was a
wonderful event.
March 17
Attended the Meals on Wheels of Orange County St. Patrick's Day event with United States
Representative Young Kim.
ADJOURNED at 6:37 p.m. The next meeting is scheduled on Tuesday, April 1, 2025, for the
Closed Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.
FSigned by:
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AU T Tq°LIUMBARD,
Mayor
Signed by: oS
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City Clerk
City Council March 18, 2025
Meeting Minutes Page 10 of 10