HomeMy WebLinkAbout00 CC AGENDA 12.02.25CITY OF TUSTIN MEETING DECEMBER 2, 2025
OF THE CITY COUNCIL 300 CENTENNIAL WAY, TUSTIN
f COUNCIL CHAMBER
VIDEO CONFERENCE
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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. Kendig, City Attorney
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City Council December 2, 2025
Meeting Agenda Page 1 of 12
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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 December 2, 2025
Meeting Agenda Page 2 of 12
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CALL TO ORDER — #3089
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 Closed Session Agenda.
CLOSED SESSION UPDATE — City Attorney David E. Kendig
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)
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): (5 cases)
A. Nicole Aragon v. City of Tustin, et al., U.S.D.C.- C.D. Cal., Case No. 8:25-cv-
01741-H DV-J C.
B. Joaquin Barraza v. City of Tustin, et al., U.S.D.C.- C.D. Cal., Case No. 8:24-
cv-02286-JWH-DFM
C. Edwin Cruz v. City of Tustin, et al. U.S.D.C.- C.D. Cal., Case No. 8:25-cv-
City Council December 2, 2025
Meeting Agenda Page 3 of 12
01735-ADS
D. Kimberley Ann Davis v. Brian Baron, et al., OCSC Case No. 30-2025-
01487435
E. Emily Garcia -Areas v. City of Tustin, et al, U.S.D.C.- C.D. Cal., Case No. 8:22-
cv-00131 SPG
REGULAR MEETING OF THE CITY COUNCIL
6:00 P.M.
CALL TO ORDER — #3089
PRESENTATION OF COLORS, INVOCATION AND PLEDGE OF ALLEGIANCE —
American Legion
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
PUBLIC HEARING ITEM — 1
1. ADOPT RESOLUTION NO. 25-74 FORMING AND LEVYING ASSESSMENT
WITHIN THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT
2025 REPLACING THE EXISTING TUSTIN LANDSCAPE AND LIGHTING
DISTRICT
The Tustin Landscape and Lighting District was formed in 1985 and provides funding
for the maintenance of perimeter landscaping on arterial streets and for the operation
and maintenance of street lighting on public roads within the Tustin Ranch area. The
current assessment revenue is no longer sufficient to cover the cost of maintaining
the public infrastructure. On September 16, 2025, the City Council approved the
Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and
Lighting Reassessment District 2025 and set a public hearing for December 2, 2025.
At the close of the public hearing, all returned ballots will be tabulated to determine if
there is sufficient property owner support for creating Tustin Landscape and Lighting
Reassessment District 2025.
Recommendation: It is recommended that the City Council:
City Council December 2, 2025
Meeting Agenda Page 4 of 12
1. Conduct a public hearing to receive public input on the formation of Tustin
Landscape and Lighting Reassessment District 2025 and associated
assessments to be levied for Fiscal Year 2026-2027; and
2. After tabulation of all returned ballots, and if a majority in support the formation
of Tustin Landscape and Lighting Reassessment District 2025, adopt
Resolution No. 25-74.
Fiscal Impact: Sufficient funds are budgeted and appropriated in the Tustin
Landscape and Lighting Fund for the required property owner's official assessment
ballot proceedings for the proposed reassessment district. The costs for operating
and maintaining the public infrastructure in the Tustin Landscape and Lighting District
are offset through the levy of the annual assessments. The proposed Tustin
Landscape and Lighting Reassessment District 2025 contains the same cost -
recovery structure with proposed annual assessments and a general fund
contribution.
The proposed reassessment district has no impact on the existing Tustin Landscape
and Lighting District Fund's budget for Fiscal Year 2025-2026. If approved by the
property owners, the reassessment district will replace the existing district and levy
assessments commencing Fiscal Year 2026-2027. Similarly, the General Fund
contribution would increase in Fiscal Year 2026-2027 and each year thereafter,
consistent with the proposed schedule outlined in the Engineers Report and Table 2
below. Should the Tustin Landscape and Lighting Reassessment District 2025 fail to
be approved by the property owners, maintenance will remain at reduced service
levels and will be refined annually to ensure expenses do not exceed revenue.
RESOLUTION NO. 25-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
APPROVING THE FORMATION OF TUSTIN LANDSCAPE AND LIGHTING
REASSESSMENT DISTRICT 2025 AND CONFIRMING THE ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2026-2027
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 Items 2-9)
2. 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.
3. APPROVAL OF MINUTES — THE CLOSED SESSION MEETING AND THE
REGULAR MEETING OF THE CITY COUNCIL HELD ON NOVEMBER 18, 2025.
City Council December 2, 2025
Meeting Agenda Page 5 of 12
Recommendation: That the City Council approve the Action Minutes of the City
Council Closed Session Meeting and Regular Meeting held on November 18, 2025.
4. 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 $1,169,867.70 and Demands in the amount of $3,470,794.02.
5. RENTAL AGREEMENT WITH KYA SERVICES, LLC
Request for approval of a new Rental Agreement with KYA Services, LLC for the
84,000-square-foot, City -owned warehouse building located at 15171 Del Amo
Avenue for the term of August 2026 through July 2031.
Recommendation: It is recommended that the City Council authorize the City
Manager to execute the new Rental Agreement between the City and KYA Services,
LLC subject to any non -substantive modifications as may be deemed necessary
and/or recommended by the City Attorney.
Fiscal Impact: Pursuant to the new Rental Agreement, KYA Services, LLC will pay
the following annual rent amounts to the City to be deposited into the General Fund:
- August 2026-July 2027: $1,395,924
- August 2027-July 2028: $1,521,552
- August 2028-July 2029: $1,597,632
- August 2029-July 2030: $1,677,516
- August 2030-July 2031: $1,761,396
City costs will be limited to capital improvements such as parking lot maintenance or
roof repairs (if needed) during the term of the Rental Agreement.
6. MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT
The Local Transportation Authority Ordinance No. 3 requires the City to adopt an
annual expenditure report detailing Net Revenues, developer/traffic impact fees, and
City expenditures that meet the Maintenance of Effort (MOE) requirements. The
Orange County Transportation Authority (OCTA) established the MOE benchmark
with the original passage of Measure M. Under the MOE requirement, the City must
spend local funds on transportation -related projects each fiscal year to remain eligible
to receive Measure M2 Fairshare funds. For Fiscal Year 2024-25, the City's required
MOE expenditure is $1,938,025.
City Council December 2, 2025
Meeting Agenda Page 6 of 12
7.
Recommendation: It is recommended that the
25-73, adopting the Measure M2 Expenditure
(attached), and direct staff to file the report with
Authority.
RESOLUTION NO. 25-73
City Council adopt Resolution No.
Report for Fiscal Year 2024-2025
the Orange County Transportation
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
CONCERNING THE MEASURE M2 (M2) EXPENDITURE REPORT FOR THE CITY
OF TUSTIN, CALIFORNIA
Fiscal Impact: There is no fiscal impact associated with this item.
ACCEPT IMPROVEMENTS AND FILE A NOTICE OF COMPLETION FOR THE EL
CAMINO REAL WATER MAIN RELOCATION PROJECT
Construction of the El Camino Real Water Main Relocation 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:
Adopt Resolution No. 25-72 accepting the improvement of the El Camino Real
Water Main Relocation Project; and
2. Authorize the City Engineer to execute and file the Notice of Completion with
the Orange County Recorder's Office.
RESOLUTION NO. 25-72
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 EL CAMINO
REAL WATER MAIN RELOCATION PROJECT, (CIP NO. 60178)
Fiscal Impact: A total of $596,555.30 was appropriated in the Fiscal Year 2025-2026
Capital Improvement Program Budget for this project. The final construction cost for
the El Camino Real Water Main Relocation Project is $557,049.32. This cost consists
of the original contract with Nelos Construction, Inc., in the amount of $ 393,399.10,
a change order for $96,555.30 for additional work requested by the partner agencies,
and additional project change orders totaling $67,094.92 outside the original scope
of work. Agreement COT-56 between the City of Tustin and the Orange County
Transportation Authority authorizes the full reimbursement for final design and all
construction costs, minus an accrued depreciation credit of $2,650.
EXTENSION AND AMENDMENT OF EXCLUSIVE NEGOTIATING AGREEMENT
WITH CD-CW (TUSTIN) LLC FOR A PORTION OF LAND AT TUSTIN LEGACY
City Council December 2, 2025
Meeting Agenda Page 7 of 12
Request for approval of an extension of the Exclusive Negotiating Agreement with
CD-CW (Tustin) LLC to continue the negotiating period for the disposition and
development of a portion of Disposition Area 8B at Tustin Legacy for up to an
additional 180 days.
Recommendation: It is recommended that the City Council take the following
actions:
1. Approve an extension of the Exclusive Negotiating Agreement for an
additional period of 120 days with a secondary 60-day extension subject to
the approval of the City Manager in their sole discretion in accordance with
Section 4.2 of the Exclusive Negotiating Agreement, as amended.
2. Authorize the City Manager to execute an amendment to the Exclusive
Negotiating Agreement reflecting the two extensions as requested by CD-CW
(Tustin) LLC, establish a milestone schedule of performance for CD-CW
(Tustin) LLC to adhere to, clarify Exclusive Negotiating Agreement extension
deposit amounts and that they may be applied to the purchase price deposit
but shall remain non-refundable, and make any non -substantive additions or
modifications as may be deemed necessary and/or recommended by the
City's special real estate counsel or the City Attorney prior to the end of the
Exclusive Negotiating Agreement Negotiating Period.
Fiscal Impact: The Exclusive Negotiating Agreement will be amended to require a
$150,000 extension deposit for the first 120-day extension and a $100,000 extension
deposit for the second 60-day extension. Pursuant to the Exclusive Negotiating
Agreement, the City retains these deposits if the Disposition and Development
Agreement is not executed, or if the Disposition and Development Agreement is
executed but close of escrow does not occur. If the Disposition and Development
Agreement is executed and close of escrow occurs, the extension deposits (without
interest accrued) are applicable to the purchase price and the purchase price deposit.
CD-CW (Tustin) LLC also has a deposit account with the City that will continue to
fund the City transaction expenses incurred by staff and third -party consultants
including the retention of legal counsel associated with the negotiation and drafting
of the transaction documents.
9. APPROVE AMENDMENT NO. 1 TO CONSULTANT SERVICES AGREEMENT
WITH TY LIN INTERNATIONAL
Staff is recommending that the City Council approve Amendment No. 1 to the
Consultant Services Agreement with TY Lin International to provide design
modifications of the Armstrong Avenue Pedestrian Bridge Project (CIP No. 70257).
The City will be exploring design alternatives in effort to reduce construction costs.
Recommendation: It is recommended that the City Council approve Amendment
No. 1 to Consultant Services Agreement with TY Lin International to provide design
modifications of the Armstrong Avenue Pedestrian Bridge Project, in an amount not
City Council December 2, 2025
Meeting Agenda Page 8 of 12
to exceed $320,000.00, which includes a 15% contingency, and authorize the City
Manager to execute the Agreement on behalf of the City.
Fiscal Impact: The proposed Amendment No. 1 to Consultant Services Agreement
with TY Lin International includes a not -to -exceed total compensation amount of
$320,000.00, which includes a 15% contingency. Sufficient funds have been
appropriated in the Fiscal Year 2025-2026 Capital Improvement Program Budget.
PUBLIC HEARING ITEM
10. VACATION OF A PORTION OF AUTO CENTER DRIVE
California Streets and Highways Code authorizes the City Council to vacate all or a
portion of a street within the City when it is no longer necessary for current or
prospective public street purposes, either on its own initiative or upon request of an
interested party. A request was received from the owners of Tustin Lexus and Tustin
Cadillac to vacate a 12-foot wide strip of right-of-way around the perimeter of the
Auto Center Drive cul-de-sac adjacent to their properties, reducing the curb radius to
40 feet. On November 4, 2025, the City Council adopted Resolution No. 25-21
declaring its intent to vacate and set a public hearing for December 2, 2025.
Additionally, pursuant to the Surplus Land Act, the City Council must make findings
and adopt a resolution declaring property to be conveyed as exempt surplus land.
Recommendation: It is recommended that the City Council take the following
actions:
1. Conduct the Public Hearing to vacate a portion of Auto Center Drive; and
2. Adopt Resolution No. 25-68 ordering the vacation of a portion of Auto Center
Drive; and
3. Adopt Resolution No. 25-69 declaring the portion of Auto Center Drive to be
vacated as exempt surplus land pursuant to California Government Code
Section 54221(f)(1)(E) and the Final Updated Surplus Land Act Guidelines
Section 103(c)(6); and
4. Authorize the City Manager to submit the appropriate documentation to the
California Department of Housing and Community Development in connection
with Resolution No. 25-69; and
5. Authorize the City Manager to take all actions and execute agreements
necessary or appropriate to complete the vacation and transfer.
RESOLUTION 25-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
ORDERING THE VACATION OF A PORTION OF AUTO CENTER DRIVE
City Council December 2, 2025
Meeting Agenda Page 9 of 12
RESOLUTION NO. 25-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
DECLARING CERTAIN REAL PROPERTY COMPRISED OF PORTIONS OF AUTO
CENTER DRIVE AS EXEMPT SURPLUS LAND PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 54221(f)(1)(E) AND THE FINAL UPDATED
SURPLUS LAND ACT GUIDELINES SECTION 103(c)(6)
Fiscal Impact: The City obtained an appraisal determining the fair market value of
Parcel A and Parcel B, depicted in Resolution No. 25-68, to be $14,000 and $30,000,
respectively. If the proposed street vacation is approved, the adjacent property
owners have agreed to pay fair market value at the above noted prices with proceeds
deposited to the General Fund.
11. ZONE CHANGE 2025-0001, VESTING TENTATIVE TRACT MAP
19390/SUBDIVISION 2025-0001, DESIGN REVIEW 2025-0004, AND
CONSIDERATION OF A FINAL ENVIRONMENTAL IMPACT REPORT FOR THE
DEVELOPMENT OF 145 RESIDENTIAL UNITS AT THE SOUTHEAST CORNER
OF 17TH STREET AND PROSPECT AVENUE
This item is consideration of the proposed Cypress Grove project, a 145-unit for -sale
residential community on an 8.5-acre site, presently known as Tustin Financial Plaza
located at the intersection of 17t" Street and Prospect Avenue. Redevelopment of the
site will require the demolition of five existing commercial office buildings, a zone
change to allow for residential unit development, a tract map for subdivision of the
condominium units, design review, and associated environmental analysis.
On November 17, 2025, the Planning Commission unanimously approved Resolution
Nos. 4535, 4536, and 4537, recommending City Council approval of Zone Change
2025-0001, Vesting Tentative Tract map 19390/Subdivision 2025-0001, Design Review
2025-0004, and certification of the Final Environmental Impact Report.
Recommendation: That the City Council:
1. Adopt City Council Resolution No. 25-65, certifying the Final Environmental
Impact Report and adopting the Findings of Fact, Statement of Overriding
Considerations, and Mitigation Monitoring and Report Program for Zone
Change 2025-0001, Vesting Tentative Tract Map 19390/Subdivision 2025-
0001, and Design Review 2025-0004.
2. Introduce and conduct first reading by title only of Ordinance No.1573 to
approve Zone Change 2025-0001 to rezone the site from Planned Community
Business Park to Planned Community Residential and adopt a new
development plan to establish permitted residential uses and development
standards for the construction of 145 residential condominiums on
approximately 8.5 acres.
3. Adopt City Council Resolution No. 25-66 to approve:
City Council December 2, 2025
Meeting Agenda Page 10 of 12
a. Vesting Tentative Tract Map 19390/SUB 2025-0001 to subdivide the
property to construct 145 residential condominiums on approximately 8.5
acres.
b. Design Review 2025-0004 for the design and site layout of 145 residential
condominiums.
RESOLUTION NO. 25-65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
CERTIFING THE FINAL ENVIRONMENTAL IMPACT REPORT AND ADOPTING
CEQA FINDINGS OF FACT, A STATEMENT OF OVERRIDING
CONSIDERATIONS, AND MITIGATION MONITORING AND REPORTING
PROGRAM FOR ZONE CHANGE 2025-0001, SUBDIVISION 2025-0001 / VESTING
TENTATIVE TRACT MAP 19390, AND DESIGN REVIEW 2025-0004
ORDINANCE NO. 1573
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
APPROVING ZONE CHANGE 2025-0001 TO AMEND THE CITY'S ZONING MAP
TO APPLY THE PLANNED COMMUNITY RESIDENTIAL ZONING DESIGNATION
TO AN 8.5-ACRE SITE (ASSESSOR PARCEL NUMBERS (APNS) 401-401-12, -13,
-14, -15, -16, AND -17) TO ACCOMMODATE THE CONSTRUCTION OF A 145-
UNIT RESIDENTIAL CONDOMINIUM PROJECT
RESOLUTION NO. 25-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
APPROVING SUBDIVISION 2025-0001/VESTING TENTATIVE TRACT MAP 19390
AND DESIGN REVIEW 2025-0004 AUTHORIZING THE CONSTRUCTION OF A
145-UNIT RESIDENTIAL CONDOMINIUM PROJECT AT AN 8.5-ACRE SITE
(ASSESSOR PARCEL NUMBERS (APNS) 401-401-12, -13, -14, -15, -16, AND -17)
Fiscal Impact: There is no fiscal impact associated with this item however, the
applicant has provided a Fiscal Impact Analysis (Attachment M), that considered
ongoing general fund revenues to the City from property tax and sales tax, showing
an estimated net positive benefit of about $191,000 in the first year.
REGULAR BUSINESS
12. MAYOR PRO TEM SELECTION
The City Council selects a member of the Council who will serve as Mayor Pro Tern
for the following year.
Recommendation: Pleasure of the City Council
Fiscal Impact: There is no fiscal impact associated with this item.
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
City Council December 2, 2025
Meeting Agenda Page 11 of 12
MAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND REPORTS
ADJOURNMENT - The next meeting is scheduled on Tuesday, December 16, 2025, for
the Closed Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.
City Council December 2, 2025
Meeting Agenda Page 12 of 12