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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 r 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 NOTICE REGARDING PUBLIC PARTICIPATION To watch the meeting, the public may observe the meeting in person in the Council Chamber or via the City's Granicus service at: https://www.tustinca.org/282/Meetings-Agendas or on the local Cox Channel 851. To participate and/or comment on one or more items, do the following: 1. PARTICIPATING DURING A MEETING Community members who wish to address the City Council during a public meeting may attend the meeting in person or join through Zoom. By joining the meeting through Zoom, you will be able to speak but your video will not be enabled. Please see further instructions below. HOW TO CONNECT TO THE ZOOM WEB CONFERENCE BY COMPUTER OR SMART DEVICE Community members may provide live public comments via Zoom during City Council meetings. To join the meeting, click here and use the passcode below. You can also join via the Zoom app on your smartphone or tablet, or in a web browser at https://zoom.us/join, by entering the Meeting ID and Passcode below. Meeting ID: 940 8640 1921 Passcode: 600222 Please provide your name in the Zoom application to allow the City Clerk to identify you when it is your time to speak. We suggest installing and testing the Zoom software on your device prior to the commencement of the meeting. HOW TO CONNECT TO THE ZOOM WEB CONFERENCE BY TELEPHONE To join to the Zoom web conference from any phone (landline or wireless), dial 669-900-6833. City Council December 2, 2025 Meeting Agenda Page 1 of 12 When prompted use the below Meeting ID and Passcode: Meeting ID: 940 8640 1921 Passcode: 600222 The City Clerk will identify you by the last 4 digits of your phone when it is your time to speak. When requested by the City Clerk, call -in users can unmute and mute their phones by pressing *6. Call -in users can raise their hand by pressing *9 but may not lower their hand once raised. 2. PROVIDE WRITTEN COMMENTS THROUGH THE E-COMMENT SYSTEM 1. Proceed to the SpeakUp comment system: A. To submit an e-comment on an upcoming meeting agenda go to https://tustin.granicusideas.com/meetings?scope=upcoming and select the agenda item. B. Follow the links to type and submit your comment(s) on one or more items: a. The items may be on the agenda or not on the agenda. b. Your comments will be forwarded electronically and immediately to the members of the City Council. c. Comments related to a particular agenda item will only be considered prior to the close of public comments on that item d. Comments on matters that are not on the agenda may be submitted only until the "Public Comment" portion of the agenda is concluded. For Individuals with Disabilities: The City is dedicated to ensuring accessibility to the meetings for those individuals with disabilities, so the City has established a process to request a reasonable modification or accommodation consistent with the Americans with Disabilities Act (ADA). If you would like to request a modification or accommodation due to a disability, please call (714) 573-3025 as soon as is feasible, and identify the need and the requested modification or accommodation. The City's ADA Coordinator or her designee will receive the request and communicate in response to the request. 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 M- :2*91 =1 II&I **I. ICkiI►Til=1 =111101kiLae] a0:I*aIllWK61611P►[al11111111miIl7a►TiI 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