HomeMy WebLinkAbout00 CC AGENDA 5.20.25CITY OF TUSTIN SPECIAL AND REGULAR
MEETING OF THE CITY COUNCIL
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John Nielsen, Mayor Pro Tern
Ryan Gallagher, Council Member Austin Lumbard, Mayor
Ray Schnell, Council Member
Lee K. Fink, Council Member
MAY 20, 2025
300 CENTENNIAL WAY, TUSTIN
COUNCIL CHAMBER
VIDEO CONFERENCE
Aldo E. Schindler, City Manager
Erica N. Yasuda, City Clerk
David E. Kendig, City Attorney
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City Council May 20, 2025
Meeting Agenda Page 1 of 10
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Meeting ID: 940 8640 1921
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Items Distributed To The City Council Less Than 72 Hours Prior To Meeting: Pursuant to
Government Code section 54957.5, non-exempt public records that relate to one or more
open session agenda items and that are distributed to a majority of the City Council less
than seventy-two (72) hours prior to the meeting will be available for public inspection on
the electronic posting board located at 300 Centennial Way, Tustin, CA 92780.
City Council May 20, 2025
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SPECIAL MEETING OF THE CITY COUNCIL
4:30 P.M.
CALL TO ORDER —
ROLL CALL — City Clerk
PUBLIC INPUT —Members of the public may provide comments in writing, in person or in
real time via Zoom to address the City Council on items on the Special Meeting Agenda.
BUDGET WORKSHOP
1. FISCAL YEARS 2025-2027 BUDGET WORKSHOP
This report presents two options intended to frame numerous potential scenarios
for the Proposed Biennial Operating Budget and Capital Improvement Program for
Fiscal Years 2025-2026 and 2026-2027. The purpose of providing options is to
facilitate community input for City Council consideration and allow time for potential
adjustments or other changes to be incorporated into the proposed budget, which
will be considered for adoption at a June City Council meeting. Additionally, this
report presents a proposed 10-Year Fiscal Sustainability Strategy intended to align
annual revenues and expenses.
Recommendation: Staff recommends that the City Council:
1. Provide direction to staff regarding the proposed 10-year Fiscal
Sustainability Strategy and the budget option to be considered by the City
Council for adoption.
Fiscal Impact: The proposed Biennial Budget for Fiscal Years 2025-2027 allocates
resources to support delivery of citywide public services.
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)
City Council May 20, 2025
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2. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION - Initiation
of litigation pursuant to Government Code § 54956.9(d)(4): (2 cases)
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. LIABILITY CLAIM - [Government Code § 54956.95]
Claimant: The Center for Toxicology and Environmental Health, L.L.0
Agency claimed against: City of Tustin
5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to
Government Code § 54956.9(a): (1 case)
A. Gonzalez and Duran v. City of Tustin Case No. 8:23-cv-01274-FWS-ADS
REGULAR MEETING OF THE CITY COUNCIL AND TUSTIN PUBLIC FINANCING
AUTHORITY
6:00 P.M.
CALL TO ORDER — #3078
INVOCATION — Deacon John Reza, St. Cecilia Church
PLEDGE OF ALLEGIANCE — Council Member Schnell
PUBLIC INPUT — At this time, any member of the public may address the Council on
matters which are not on this evening's agenda, provided the matter is within the subject
matter jurisdiction of the City Council.
CLOSED SESSION REPORT — City Attorney David E. Kendig
CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to
be routine and will be enacted by one motion without discussion. Persons wishing to speak
regarding Consent Calendar matters should file a "Request to Speak" form with the City
Clerk. (Agenda Item 1-11)
City Council May 20, 2025
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1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE
AGENDA
Recommendation: That the City Council waive reading in full of all ordinances and
resolutions on the agenda and declare 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 SPECIAL CLOSED SESSION MEETING AND
THE REGULAR MEETING OF THE CITY COUNCIL HELD ON MAY 6, 2025.
Recommendation: That the City Council approve the Action Minutes of the City
Council Meeting held on May 6, 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.
Recommendation: It is recommended that the City Council approve Payroll in the
amount of $1,045,360.64 and Demands in the amount of $4,891,671.79.
4. FIRST READING OF ORDINANCE TO REPEAL TUSTIN CITY CODE
PROVISIONS REGARDING BICYCLE REGISTRATIONS
This item recommends first reading by title only of Ordinance 1567 to repeal of the
bicycle registration provisions in Tustin City Code sections 5400 - 5411.
Recommendation: Conduct first reading by title only of Ordinance 1567 entitled "An
Ordinance of the City Council of the City of Tustin Repealing Chapter 4 of Article 5
of the Tustin City Code Concerning Bicycle Registration", and direct staff to place the
Ordinance on the next regular meeting agenda for second reading and adoption.
ORDINANCE NO. 1567
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN REPEALING
CHAPTER 4 OF ARTICLE 5 OF THE TUSTIN CITY CODE CONCERNING
BICYCLE REGISTRATION.
Fiscal Impact: There is no fiscal impact associated with this item.
5. ACCEPT IMPROVEMENTS AND FILE A NOTICE OF COMPLETION FOR THE
JOHN LYTTLE RESERVOIR IMPROVEMENTS PROJECT
Construction of the John Lyttle Reservoir Improvements Project has been completed
to the satisfaction of the City Engineer and is now ready for City Council acceptance.
Recommendation: It is recommended that the City Council:
City Council May 20, 2025
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Adopt Resolution No. 25-12 accepting the improvement of the John Lyttle
Reservoir Improvements Project; and
2. Authorize the City Engineer to execute and file the Notice of Completion with
the Orange County Recorder's Office.
RESOLUTION NO. 25-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
ACCEPTING THE PUBLIC WORKS AND IMPROVEMENT AND AUTHORIZING
THE RECORDATION OF THE NOTICE OF COMPLETION FOR THE JOHN
LYTTLE RESERVOIR IMPROVEMENTS PROJECT, (CIP NO. 60148)
Fiscal Impact: The final construction cost for the John Lyttle Reservoir
Improvements Project is $741,596.41, including contract credits and change orders,
and approximately 2% lower than original contract amount of $758,088.92. Sufficient
funds were budgeted and appropriated in the Capital Improvement Program using
2024 Water Bond Fund (Fund 307).
6. QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE
SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT
AGENCY FOR THE QUARTER ENDED MARCH 31, 2025
Government Code Section 53646 requires that the Treasurer make an Investment
Report to the City Council at least quarterly showing balances by authorized
investment and certifying its compliance with the adopted Investment Policy.
Recommendation: Receive and file.
Fiscal Impact: There is no fiscal impact associated with this item.
7. CITY COUNCIL CONSIDERATION AND APPROVAL TO RELEASE A
COMPETITIVE OFFERING FOR APPROXIMATELY 52 ACRES OF CITY -OWNED
REAL PROPERTY WITHIN NEIGHBORHOOD E (PLANNING AREAS 9-12) OF
THE TUSTIN LEGACY SPECIFIC PLAN
Staff is requesting City Council consideration and approval to release a competitive
offering for approximately 52 acres of City -owned real property within Neighborhood
E (Planning Areas 9-12) of the Tustin Legacy Specific Plan pursuant to the
procedures recently approved by the City Council in Resolution 25-10.
Recommendation: It is recommended that the City Council take the following
actions:
1. Authorize staff to release a competitive offering for approximately 52 acres of
City -owned real property within Neighborhood E (Planning Areas 9-12) of the
Tustin Legacy Specific Plan pursuant to the procedures recently approved by
the City Council in Resolution 25-10; and
City Council May 20, 2025
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2. Authorize the City Manager to continue and/or enter into temporary leases
and licenses prior to final disposition.
Fiscal Impact: There is no fiscal impact associated with this item.
8. AMENDED LISTING AGREEMENT WITH CCP REAL ESTATE ADVISORS FOR
APPROXIMATELY 52 ACRES OF CITY -OWNED REAL PROPERTY WITHIN
NEIGHBORHOOD E (PLANNING AREAS 9-12) OF THE TUSTIN LEGACY
SPECIFIC PLAN
Amended Listing Agreement with CCP Real Estate Advisors to provide marketing
and solicitation services for approximately 52 acres of City -owned real property within
Neighborhood E (Planning Areas 9-12) of the Tustin Legacy Specific Plan.
Recommendation: Authorize the City
amended Listing Agreement with CCP
substantive additions or modifications
recommended by the City Attorney.
Manager to negotiate and execute an
Real Estate Advisors, subject to non -
as may be deemed necessary and/or
Fiscal Impact: There will be no impact to the General Fund given that commission
to a commercial real estate broker is paid at close of escrow on a land sale or
execution of a ground lease. The City and CCP Real Estate Advisors have negotiated
the following commission:
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 3.0% of the total lease payments for Years 1-10
Lease: *Commission to be capped at first 10 years of ground lease payments.
The final compensation amount to be paid will depend on the success of a future
conveyance. It is undetermined at this time whether property would be conveyed
under a sale or ground lease.
9. SELECTION OF A REAL ESTATE BROKER FOR MARKETING AND
SOLICITATION SERVICES FOR CITY -OWNED REAL PROPERTY AT 150 E.
FIRST STREET
Request for selection of a real estate broker to provide marketing and solicitation
services for approximately 0.4 acres of City -owned real property at 150 E. First Street
within Development Area 2 of the Downtown Commercial Core Specific Plan.
Recommendation: Authorize the City Manager to negotiate and execute a Listing
Agreement with Professional Real Estate Services, Inc., subject to non -substantive
City Council May 20, 2025
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additions or modifications as may be deemed necessary and/or recommended by
the City Attorney.
Fiscal Impact: There will be no impact to the General Fund given that commission
to a real estate broker is paid at close of escrow on a land sale or execution of a
ground lease. The City and Professional Real Estate Services, Inc., have negotiated
the following commission:
Sale: 4.0% of gross purchase price
Lease: 4.0% of the total lease payments for Years 1-10
*Commission to be capped at first 10 years of lease payments.
10. CONSULTANT SERVICES AGREEMENT WITH SECURITAS SECURITY
SERVICES USA, INC.
Staff is requesting approval to enter into a Consultant Services Agreement with
Securitas Security Services USA, Inc. for on -site security guard services for the
South Hangar at Tustin Legacy.
Recommendation: It is recommended that the City Council authorize the City
Manager or designee to execute a Consultant Services Agreement with Securitas
Security Services USA, Inc., subject to non -substantive additions or modifications as
may be deemed necessary and/or recommended by the City Attorney.
Fiscal Impact: The proposed compensation for the Consultant Services Agreement
with Securitas Security Services USA, Inc. is not to exceed $725,000 for June 2025
through May 2026. Sufficient funds have been appropriated in the Fiscal Year 2024-
2025 amended budget and the proposed Fiscal Year 2025-2026 budget.
11. CITY COUNCIL CONSIDERATION AND APPROVAL TO RELEASE A
COMPETITIVE OFFERING FOR APPROXIMATELY 21 ACRES OF CITY -OWNED
REAL PROPERTY WITHIN NEIGHBORHOOD E (PLANNING AREAS 9-12) OF
THE TUSTIN LEGACY SPECIFIC PLAN
Staff is requesting City Council consideration and approval to release a competitive
offering for approximately 21 acres of City -owned real property within Neighborhood
E (Planning Areas 9-12) of the Tustin Legacy Specific Plan pursuant to the
procedures recently approved by the City Council in Resolution 25-10.
Recommendation: It is recommended that the City Council take the following
actions:
1. Authorize staff to release a competitive offering for approximately 21 acres of
City -owned real property within Neighborhood E (Planning Areas 9-12) of the
Tustin Legacy Specific Plan pursuant to the procedures recently approved by
the City Council in Resolution 25-10; and
City Council May 20, 2025
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2. Authorize the City Manager to continue and/or enter into temporary leases
and licenses prior to final disposition.
Fiscal Impact: There is no fiscal impact associated with this item.
PUBLIC HEARING ITEM 12
12. PUBLIC HEARING AND APPROVAL BY THE TUSTIN FINANCING AUTHORITY
AND THE CITY OF TUSTIN AS THE LEGISLATIVE BODY FOR THE COMMUNITY
FACILITIES DISTRICTS OF THE ISSUANCE OF SPECIAL TAX REVENUE
REFUNDING BONDS IN AN AMOUNT NOT TO EXCEED $63 MILLION TO
REFUND THE COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN
LEGACY/STANDARD PACIFIC) 2015 SPECIAL TAX BONDS, SERIES 2015A
AND COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN
LEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS, SERIES
2015A AND SERIES 2015B
On April 1, 2025, the City of Tustin ("City") authorized the initiation of proceedings to
issue bonds (the "2025 Refunding Bonds") to refund its outstanding City of Tustin
Community Facilities District No. 2014-1 (Tustin Legacy/Standard Pacific) Special
Tax Bonds, Series 2015A, City of Tustin Community Facilities District No. 06-1
(Tustin Legacy/Columbus Village) Special Tax Refunding Bonds, Series 2015A; and
the City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus
Villages) Special Tax Bonds Series 2015B (collectively, the "2015 CFD Bonds") to
take advantage of lower interest rates to reduce the annual debt service payments
and lower property owners' special tax payments starting in FY 2025-2026. To
maximize savings, the 2025 Refunding Bonds will be issued and publicly sold by the
Tustin Financing Authority ("Authority"), by pooling the underlying refunding bonds of
each community facilities district.
Recommendation: It is recommended that the City Council:
1. CONDUCT A PUBLIC HEARING TO CONSIDER THE ISSUANCE BY
THE TUSTIN FINANCING AUTHORITY OF ITS SPECIAL TAX REVENUE
REFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT
TO EXCEED $63 MILLION TO POOL AND ISSUE DEBT TO FACILITATE
THE REFUNDING OF THE 2015 CFD BONDS;
2. ADOPT RESOLUTION 25-37, A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO.06-
1 (TUSTIN LEGACY/COLUMBUS VILLAGES), AUTHORIZING THE
ISSUANCE OF ITS SPECIAL TAX REFUNDING BONDS, SERIES 2025 IN
A PRINCIPAL AMOUNT NOT TO EXCEED $38 MILLION AND
APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH; AND
3. ADOPT RESOLUTION 25-38, A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO.
City Council May 20, 2025
Meeting Agenda Page 9 of 10
2014-1 (TUSTIN LEGACY/STANDARD PACIFIC), AUTHORIZING THE
ISSUANCE OF ITS SPECIAL TAX REFUNDING BONDS, SERIES 2025 IN
A PRINCIPAL AMOUNT NOT TO EXCEED $25 MILLION AND
APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH.
It is recommended that the Board of Directors of the Tustin Financing Authority:
1. ADOPT RESOLUTION NO. 25-01 AUTHORIZING THE ISSUANCE OF
ITS SPECIAL TAX REVENUE REFUNDING BONDS IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $63 MILLION AND
APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH
Fiscal Impact: The 2025 Refunding Bonds will have no financial impact on the City's
General Fund, as all payments of principal and interest on the 2025 Refunding Bonds
will be paid solely from the special tax revenues levied and collected from properties
located in the affected community facilities districts. All bond issuance costs will be
paid from the proceeds of the Bonds.
It is estimated that the refunding of the 2015 CFD Bonds will reduce annual debt
service payments by approximately $485,000 per year, totaling over $3.6 million in
net present value saving over the remaining term of the 2015 CFD Bonds based on
market conditions as of April 30, 2025.
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
MAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND REPORTS
ADJOURNMENT - The next meeting is scheduled on Tuesday, June 3, 2025, for the Closed
Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.
City Council May 20, 2025
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