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HomeMy WebLinkAbout02 CC MINUTES 12.16.25 Agenda Item 2 Reviewed: City Manager______ Finance DirectorN/A CITY OF TUSTIN MEETING DECEMBER 16,2025 OF THE CITY COUNCIL300 CENTENNIAL WAY, TUSTIN COUNCIL CHAMBER VIDEO CONFERENCE Ray Schnell, Mayor Pro Tem Ryan Gallagher, Council Member Austin Lumbard, Mayor Aldo E. Schindler, City Manager Lee K. Fink, Council MemberErica N. Yasuda, City Clerk John Nielsen, Council MemberDavid E. Kendig, City Attorney MINUTES OF THE CLOSED SESSION MEETING OF THE CITY COUNCIL 4:30 P.M. CALL TO ORDER–#3090at 4:30 p.m. ROLL CALL–City Clerk PUBLIC INPUT–None CLOSED SESSION UPDATE–City Attorney David E. Kendig: The City Council will convene to discuss Items 1-5 as they appear on the Closed Session agenda, including under Item 1-anticipated litigation –discussion of a written threat of litigation received from legal counsel from CTEHregardingtheir invoices which are being reviewed by the Navy; discussion of written threat received from legal counsel for Travelers Insurance regarding cleanup of property owned by its policy holder, Meta Housing; discussion of a letter threateninglitigation from ATI Restoration LLC regarding their invoices which are being reviewed by the Navy.As well as Item No. 4, conference with Council’s designated real property negotiators Aldo E. Schindler, City Manager; Nicole Bernard, Assistant City Manager; Brian Moncrief, Deputy City Manager/Real Property. Council will discuss Items 3 and 5, as they appear on the agenda. Council will not discuss Item 2. 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), (e)(2), (e)(3), (e)(5): (5cases) CityCouncilDecember 16,2025 Meeting MinutesPage 1of 12 2.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -Initiation of litigation pursuant to Government Code § 54956.9(d)(4): (1case) 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. CONFERENCE WITH REAL PROPERTY NEGOTIATORS - \[Government Code § 54956.8\] (2 cases) A.Property 150 E. First St. Address/Description Agency City of Tustin City Negotiators Aldo E. Schindler, City Manager; Nicole Bernard, Assistant City Manager; Brian Moncrief, Deputy City Manager/Real Property Negotiating Parties CAZ LLC Under Negotiation Price and Terms of Payment B.Property APN 430-251-23 Address/Description Agency City of Tustin City Negotiators Aldo E. Schindler, City Manager; Nicole Bernard, Assistant City Manager; Brian Moncrief, Deputy City Manager/Real Property; Ryan Swiontek, Deputy Director/Real Property Negotiating Parties Lincoln Property Company and Pacific Industrial Under Negotiation Price and Terms of Payment 5.THREAT TO PUBLIC SERVICES OR FACILITIES \[Government Code § 54957(a)\] (1 case) Consultation with Tustin Police Department, Chief of Police Recessed at 4:31 p.m. City Council December 16, 2025 Meeting Minutes Page 2 of 12 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND TUSTIN HOUSING AUTHORITY AND SPECIAL MEETING OF THE CITY COUNCIL 6:00 P.M. CALL TO ORDER – #3090 at 6:00 p.m. INVOCATION – Major Ken Perine, Salvation Army Tustin Ranch Corps PLEDGE OF ALLEGIANCE – Council Member Nielsen PUBLIC INPUT – 1. Pete Beatty PRESENTATION – Director of Parks and Recreation, Chad Clanton, provided a PowerPoint presentation on the department’s 2026 branding. CLOSED SESSION REPORT – City Attorney David E. Kendig: Council Member Nielsen, out of an abundance of caution, recused himself from the Travelers Insurance November 21, 2025 demand letter in light of his financial interest in a potential dispute involving Travelers policy that will come to court. Other than that, there was no reportable action. CONSENT CALENDAR OF THE REGULAR MEETING ITEMS 1-11 AND CONSENT CALENDAR OF THE SPECIAL MEETING ITEM 1 PUBLIC INPUT FOR CONSENT CALENDAR ITEMS –None Council Member Fink requested to pull Item 8. It was moved by Council Member Finkand seconded by Mayor Pro Tem Schnell to pull Item 8 and approve the balance as recommended by staff. Roll Call Vote – City Clerk Motion carried: 5-0 1.WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE AGENDA City Council December 16, 2025 Meeting Minutes Page 3 of 12 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. SPECIAL MEETING ITEM 1 1.SURPLUS LAND ACT EXEMPTION FINDINGS FOR VACATION OF A PORTION OF AUTO CENTER DRIVE The Council is requested to adopt Resolution 25-77 to correct a typographic error in an Assessors Parcel Number in Resolution 25-69. Resolution 25-77 sets forth the required findings pursuant to the Surplus Land Act for the vacation of the 12-foot wide strip of right-of-way around the perimeter of the Auto Center Drive cul-de-sac adjacent to the Tustin Lexus and Tustin Cadillac properties, reducing the curb radius to 40 feet. Pursuant to the Surplus Land Act, Resolution 25-77 would make the necessary findings to declare the conveyed property as exempt surplus land. Motion: The City Council took the following actions: 1. AdoptedResolution No. 25-77 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), and superseding Resolution 25-69 attached as Attachment 1; and 2. Authorized the City Manager to submit the appropriate documentation to the California Department of Housing and Community Development in connection with Resolution No. 25-77; and 3. Authorized the City Manager to take all actions and execute agreements necessary or appropriate to complete the vacation and transfer. Fiscal Impact: There was no fiscal impact associated with this item. The City Council previously approved the vacation of the portion of Auto Center Drive for its appraised market value. RESOLUTION NO. 25-77 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) AND SUPERSEDING RESOLUTION 25-69 City Council December 16, 2025 Meeting Minutes Page 4 of 12 2.APPROVAL OF MINUTES –THE SPECIAL CLOSED SESSION MEETING AND THE REGULAR MEETING OF THE CITY COUNCIL HELD ON DECEMBER 2, 2025. Motion: The City Council approved the Action Minutes of the City Council Special Closed Session Meeting and Regular Meeting held on December 2, 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 $1,162,054.04 and Demands in the amount of $7,504,776.18. 4.SECOND READING AND ADOPTION OF ORDINANCE NO. 1573 -THE DEVELOPMENT OF 145 RESIDENTIAL UNITS AT THE SOUTHEAST CORNER OF 17TH STREET AND PROSPECT AVENUE (CYPRESS GROVE PROJECT) Adoption of Ordinance No. 1573 approves Zone Change 2025-0001 to rezone the Cypress Grove project 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. Motion: The City Council hadsecond reading by title only and adoption of Ordinance No. 1573. 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 Fiscal Impact:There was no fiscal impact associated with this item however, the applicant has provided a Fiscal Impact Analysis 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. 5.ADOPTION OF THE 2026 INVESTMENT POLICY The City's Investment Policy is reviewed on an annual basis for submission and approval by the City Council. On November 25, 2025, the Audit Commission reviewed the proposed 2026 Investment Policy, in which staff recommend a minor change to extend the maximum maturity of allowable commercial paper investments City Council December 16, 2025 Meeting Minutes Page 5 of 12 from 270 days to 397 days, as allowed under Senate Bill 595. The Commission found the policy to contain relevant provisions from the California Government Code, and the one proposed change will add flexibility to invest idle cash while maintaining safety and liquidity of assets. Therefore, the Audit Commission recommends that the City Council adopt the 2026 Investment Policy with the proposed change. Motion:The City Council adoptedthe City's 2026 Investment Policy with one change related to the maximum maturity of allowable commercial paper investments. Adoption of the Investment Policyalso delegates to the City Treasurer for a period of one year the authority to invest the funds of the City in accordance with the Investment Policy. Fiscal Impact:Consistent with State Law, the City's primary investment objective is to invest in a manner aimed to safeguard principal and maintain liquidity where the secondary objective is to achieve a market rate of return. The 2026 Investment Policy continues to provide for safety and liquidity of public funds while earning a reasonable rate of return. 6.FISCAL YEAR 2024-2025 DEVELOPMENT IMPACT FEE REPORT The attached report is prepared to comply with California Government Code Section 66006, which requires an annual disclosure and review of collected development impact fees and expenditures within 180 days after the last day of the fiscal year. Motion: The City Council receivedand filedthis report. Fiscal Impact:There was no direct impact associated with this item. 7.RESOLUTION DETERMINING THE NEED TO CONTINUE THE PROCLAIMED LOCAL EMERGENCY RELATED TO THE NAVY NORTH HANGAR 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, January 21, 2025, March 18, 2025, May 6, 2025, June 17, 2025, August 5, 2025, September 16, 2025, and November 4, 2025, theCity 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 25-75 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. City Council December 16, 2025 Meeting Minutes Page 6 of 12 RESOLUTION 25-75 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. 8.2026 MAYORAL APPOINTMENTS TO COMMITTEES AND CITY COUNCIL AD HOCS Annually the Mayor appoints those members of the City Council who will serve on various City and Regional committeesand Mayor-appointed Ad Hocs. It was moved by Council Member Fink and seconded by Council Member Nielsen that the City Council: 1.Approved the attached committees and appointments as appointed by the Mayor; and 2.AdoptedFPPC Form 806: Agency Report of Public Official Appointments and direct staff to post on the City’s website. Roll Call Vote – City Clerk Motion carried: 5-0 Fiscal Impact:There was no fiscal impact associated with this item. 9.HOUSING SUCCESSOR ANNUAL REPORT FOR FISCAL YEAR2024-2025 In accordance with Health & Safety Code Section 34176.1(f), the Tustin Housing Authority, as the Housing Successor to the former Tustin Community Redevelopment Agency, has prepared an annual report for filing with the Tustin Housing Authority and the Tustin City Council. Motion: The Tustin Housing Authority Commissioners took the following actions: 1.Receivedand filedthe Housing Successor Annual Report for Fiscal Year 2024-2025 and transmit such report to the Tustin City Council. The City Council take the following actions: City Council December 16, 2025 Meeting Minutes Page 7 of 12 1.Receivedand filedthe Housing Successor’s Annual Report for Fiscal Year 2024-2025. 2.Directeda copy of the Housing Successor Annual Report be posted on the City of Tustin’s website at www.tustinca.org. Fiscal Impact:There wasno fiscal impact associated with this item. 10.DECLARATION OF SURPLUS COMPUTER EQUIPMENT The City has accumulated a collection of obsolete and/or damaged equipment, including but not limited to desktop and laptop computers, access points, servers, network equipment, camera equipment, printers, scanners, tablets, and phone devices that are nolonger functional or needed for public use. Motion: 1.Declared the listed computer equipment as surplus and not required for public use; and 2.Authorizedstaff to dispose of the equipment. Fiscal Impact: The listed computer equipment has been determined to have zero salvage value and will be disposed of by an electronic waste service provider. This item has no direct fiscal impact. 11.2026 LOCAL APPOINTMENTS LIST Prior to December 31st of each year, the Maddy Act requires municipal agencies to prepareand post a listing of all Commission/Board vacancies for the upcoming year. Motion: Approved the 2026 Local Appointments List for the Planning Commission, Community Services Commission, Audit Commission, Building Board of Appeals and Public Art Commission and post notice as required by law. Fiscal Impact:There was no fiscal impact associated with this item. REGULAR BUSINESS 12.AUTHORIZING THE TEMPORARY POST-RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ Adoption of the attached Resolution will authorize the City to employ Robert Hernandez as a retired annuitant in the classification of Water Meter Reader sooner than 180 days after his upcoming retirement, pursuant to Government Code sections 7522.56 and 21224. Public Input - None City Council December 16, 2025 Meeting Minutes Page 8 of 12 It was moved by Mayor Pro Tem Schnell and seconded by Council Member Nielsen to adopt Resolution No. 25-76 authorizing the City to employ Robert Hernandez as a retired annuitant to fill the critically needed extra help assignment of training the next employee hired into the classification of Water Meter Reader. Roll Call Vote – City Clerk Motion carried: 5-0 RESOLUTION NO. 25-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE POST-RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ SOONER THAN 180 DAYS AFTER RETIREMENT Fiscal Impact: Authorization of this appointment will result in an estimated cost of $14,000 over the next few months. Staff is not requesting any supplemental budget appropriations associated with this action at this time; any supplemental appropriations will be incorporated with the mid-year budget review, which will be presented to the City Council in February 2026. OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY City Manager Aldo E. Schindler Announced the Public Works Department, led by the City’s Engineering Division, was awarded $21 million in Surface Transportation Block Grant/Congestion Mitigation and Air Quality Improvement Programs funding from the Southern California Association of Governments; the City received the maximum amount of $7 million per project and received funding for three projects, the maximum number of projects that the Orange County Transportation Authority could recommend to the Southern California Association of Governments for a single agency; reported that this award was the highest for a single agency in Orange County for this funding cycle; the grant investment will aid in funding the following projects: the Red Hill Avenue Rehabilitation Project (from Sycamore Avenue to Bryan Avenue), the Jamboree Road Rehabilitation Project (from I-5 to Portola Parkway), and the Tustin Ranch Road Pedestrian Bridge. Answered a follow-up question from Council Member Fink regarding the grant award and clarified that each project has been allotted $7 million in grant funding from the award; added that the City will collapse funds into the three projects and will leverage additional funds from the Capital Improvement Project Fund and General Fund to complete work as projects progress. Wished City Council a Merry Christmas. City Attorney David E. Kendig City Council December 16, 2025 Meeting Minutes Page 9 of 12 No report. MAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND REPORTS Councilmember Fink Thanked all city staff involved in the Red Hill Rehabilitation Project for their work, especially in the leveling and clearing of the vacant, former Del Taco building located on Red Hill Avenue; appreciates that the construction has been cleared for the benefit of the City. December 4 Attended the City’s Employee Appreciation event and thanked the Human Resources team for organizing the event, especially Director of Human Resources Derick Yasuda; many city employees attended; spoke with various city staff, thanking them for their service this year; extended thanks to all staff he was unable to meet for their service to the City. December 5 Attended the City of Tustin’s Annual Christmas Tree Lighting and Holiday Stroll with Council Member Nielsen; enjoyed the event. December 10 nd Attended the 42 Annual Manufactured Housing Education Trust (MHET) Orange County Holiday Luncheon for elected officials; learned more about manufactured housing; announced he won a $500 award at the annual drawing from the MHET, which will be donated to The Arvida Book Company Foundation to aid with funding their Little Free Library installation project. December 11 Attended the Waste Management Commission meeting; shared that the household hazardous waste location off of Sand Canyon Drive in Irvine, scheduled for closure earlier this year, will remain open for an additional year; recommended that community members take hazardous waste to this location to be disposed of and that the center will be searching for a permanent site; announced he was elected Vice Chair for the Waste Management Commission for the coming year. December 14 Attended the annual Menorah Lighting with Mayor Lumbard and Mayor Pro Tem Schnell; enjoyed the event and especially thanked Sergeant Royce Del Merari and the Tustin Police Department for leading the patrol unit, especially in light of the events which occurred in Australia the morning of December 14; thankful to the Tustin Police Department for ensuring safety and easing potential community concerns following the incident. Wished all in attendance a Happy Holidays and thanked everyone for their work this year. Council Member Nielsen December 4 City Council December 16, 2025 Meeting Minutes Page 10 of 12 Attended the City’s Employee Appreciation event and was grateful to see all staff in attendance enjoying bowling; thanked Director of Human Resources Derick Yasuda for organizing the event. Attended Senator Steven Choi’s Holiday Open House in the evening; was grateful to see Senator Choi and enjoyed the Korean cuisine offered at the event; had a great time. December 5 Attended one of his favorite events, the City of Tustin’s Annual Christmas Tree Lighting and Holiday Stroll; especially enjoyed the snow and sledding activities offered; congratulated Director of Parks and Recreation Chad Clanton on a wonderful job organizing the event; appreciated taking part in the tree lighting countdown and seeing Santa greet all attendees, especially the children. Thanked all staff for their kindness during his first year back as a councilmember; mentioned staff do an excellent job and put in extra effort to make Tustin the best community in Orange County. Wished all in attendance a Happy Holidays and a Merry Christmas. Council Member Gallagher Recalled Major Ken Perine’s comment during the meeting’s Invocation regarding the work of staff; shared his gratitude for the wonderful work city staff have done in 2025 as the year comes to a close; observes that, after serving as a councilmember for five years, there is a strong camaraderie and energy among city staff and Council; grateful for what the City has accomplished in 2025 and is excited to see what will be accomplished in 2026; commented that staff and Council have moved mountains this year and observes an incredible alignment within the City; thanked all for their hard work and looks forward to celebrating the new year. Mayor Pro Tem Schnell Shared that the holidays are a time for reflection and gratitude; thanked residents for allowing himself and the City Council to be in the position to make decisions on behalf of the City that will have a positive impact for generations; enjoys serving the people of Tustin and enjoys serving as a councilmember; thanked all city staff for helping the City to progress forward so well in 2025 and for rising to all challenges set forth; declared that residents will be the beneficiaries of the work completed by city staff and Council for many years to come. Reflected on the progress made as a city in 2025; commented that the City currently has a better supply of housing at this time than ever before; mentioned Director of Public Works Mike Grisso and Director of Parks and Recreation Chad Clanton worked to renovate, rebuild, and refine city parks this year to keep the spaces safe and beautiful; recalled how the Parks and Recreation Department’s ‘department of fun’ united the community with events such as the Tustin Street Fair and Chili Cookoff, Concerts in the Park, Sunset Market, Tustin Tiller Days, and the Annual Christmas Tree Lighting and Holiday Stroll; City Council December 16, 2025 Meeting Minutes Page 11 of 12 mentioned that Director of Parks and Recreation Chad Clanton and the Parks and Recreation Department bring us together to celebrate what makes Tustin special; added that Tustin supports businesses with a customer-oriented focus and thanked City Manager Aldo E. Schindler and the Economic Development staff for going out of their way to ensure businesses are supported and thriving; added that, this year, Tustin has helped residents in need through providing shelters, meals, Senior Center programs and resources for older adults, have awarded grant funding, and have enhanced public safety; announced that the Tustin Police Department welcomed a new Police Chief, Sean Thuilliez, whose work has noticeably benefited the Department, and has added new technology and new officers to keep residents safe; is excited for what 2026 will bring to residents and wished everyone a Merry Christmas and a Happy Hanukkah; thanked all in attendance for the work completed over the last 12 months. Mayor Lumbard Announced that resident and Building Board of Appeals Member Scoba Rhodes was nd recently appointed by 2 District Supervisor Vincente Sarmiento to the Orange County Veterans Advisory Council; congratulated Scoba on appointment; added that there is a large military and veteran community in Tustin and that Scoba will represent the City well. Thanked Tustin Police Department for Santa’s Sleigh; recognized that the sleigh has been a longstanding program in the City; heard from a number of residents that this year was their first time seeing Santa and enjoyed the sleigh in their neighborhoods; residents were grateful and surprised to see the sleigh; reported that the sleigh is reaching new residents each year and thanked city staff for continuing the program. December 14 Attended the annual Menorah Lighting; shared that residents were impressed to learn of the City’s recognition and celebration of Hanukkah; thanked city staff for the programming, activities, and hard work they provide for residents. Thanked Orange County Fire Authority’s Chief Morganstern for responding to all calls, especially chimney fires, and for keeping residents safe. Adjourned the meeting and wished all in attendance a Merry Christmas. ADJOURNED at 6:30 p.m.The next meeting is scheduled on Tuesday, January 6, 2026, for the Closed Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m. City Council December 16, 2025 Meeting Minutes Page 12 of 12