HomeMy WebLinkAbout00 CC AGENDA 4.21.26CITY OF TUSTIN MEETING APRIL 21, 2026
OF THE CITY COUNCIL 300 CENTENNIAL WAY, TUSTIN
f COUNCIL CHAMBER
VIDEO CONFERENCE
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Ray Schnell, Mayor Pro Tern
Ryan Gallagher, Council Member Austin Lumbard, Mayor Aldo E. Schindler, City Manager
Lee K. Fink, Council Member Erica N. Yasuda, City Clerk
John Nielsen, Council Member David E. Kendig, City Attorney
NOTICE REGARDING PUBLIC PARTICIPATION
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1. PARTICIPATING DURING A MEETING
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City Council April 21, 2026
Meeting Agenda Page 1 of 9
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Meeting ID: 940 8640 1921
Passcode: 600222
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only until the "Public Comment" portion of the agenda is concluded.
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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 April 21, 2026
Meeting Agenda Page 2 of 9
SPECIAL CLOSED SESSION MEETING OF THE CITY COUNCIL
5:30 P.M.
CALL TO ORDER — #3097
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),
(e)(2), (e)(3), (e)(5): (1 case)
2. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION - Initiation
of litigation pursuant to Government Code § 54956.9(d)(4): (1 case)
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 § 54956.951
Claimant: The Center for Toxicology and Environmental Health, L.L.0
Agency claimed against: City of Tustin
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS - [Government Code §
54956.8] (1 case)
A.
Property
Address/Description
APN 430-251-23
Agency
City of Tustin
City Negotiators
Aldo E. Schindler, City Manager; Nicole Bernard,
Assistant City Manager; Brian Moncrief, Deputy City
Manager/Real Property; Ran Swiontek, Deputy
City Council April 21, 2026
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Director of Real Property
Negotiating Parties Lincoln Property Company
Under Negotiation Price and Terms of Payment
REGULAR MEETING OF THE CITY COUNCIL
6:00 P.M.
CALL TO ORDER — #3097
INVOCATION - Pastor Sharon Barnes - Haven of Healing Ministry
PLEDGE OF ALLEGIANCE — Council Member Nielsen
PRESENTATION - Wildfire Awareness and Prevention Proclamation
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 Items 1-7)
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
REGULAR MEETING OF THE CITY COUNCIL HELD ON APRIL 7, 2026.
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Recommendation: That the City Council approve the Action Minutes of the City
Council Special Closed Session Meeting and the Regular Meeting held on April 7,
2026.
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 $1,138,859.73 and Demands in the amount of $3,914,794.08.
4. 2026 CITYWIDE RECORDS RETENTION SCHEDULE AMENDMENT
Staff is proposing the adoption of a revised Records Retention Schedule.
Recommendation: Recommend the City Council adopt Resolution No. 26-18
(Attachment 1), amending the City's Records Retention Schedule.
RESOLUTION NO. 26-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
ADOPTING AN AMENDED RECORDS RETENTION SCHEDULE, AUTHORIZING
THE DESTRUCTION OF CERTAIN CITY RECORDS, AND RESCINDING
PREVIOUS RESOLUTION NO. 25-32
Fiscal Impact: There is no fiscal impact associated with this item.
5. REINSTATEMENT AND AMENDMENT OF EXCLUSIVE NEGOTIATING
AGREEMENT WITH CD-CW (TUSTIN) LLC FOR A PORTION OF LAND AT
TUSTIN LEGACY
Request for approval to reinstate, amend and extend 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 in
order to facilitate a close of escrow of the property by the end of this year. The
extension would provide an initial 60-day period for CD-CW (Tustin) LLC to secure
an equity partner for the project with an executed Letter of Intent. Further extensions
of the Exclusive Negotiating Agreement through October 2026 would be permitted,
as needed, for CD-CW (Tustin) LLC to achieve milestones consisting of entitlement
approvals, completion of DDA negotiations and execution, and completion of
construction plans for permit review submittal.
Recommendation: Recommended that the City Council take the following action:
1. Authorize the City Manager to execute a reinstatement and amendment to the
Exclusive Negotiating Agreement reflecting the extensions as requested by
CD-CW (Tustin) LLC, establish a milestone schedule of performance for CD -
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CW (Tustin) LLC to adhere to, 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.
Fiscal Impact: The Exclusive Negotiating Agreement will be amended to require a
$300,000 extension deposit for the first 60-day extension and a $100,000 monthly
extension deposit for the remainder of the ENA Negotiating Period. The extension
deposits are non-refundable, however, 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.
6. 2025 YEAR IN REVIEW — COMMUNITY DEVELOPMENT
The 2025 Year in Review summarizes the Community Development Department's
programs and activities conducted from January 2025 through December 2025.
Recommendation: Recommend the City Council receive and file the report.
Fiscal Impact: There is no fiscal impact associated with this item.
7. AWARD CONSTRUCTION CONTRACT FOR THE HEIDEMAN SCHOOL PARK
PROJECT
Staff is requesting the City Council award a construction contract to the lowest
responsive/responsible bidder for the Heideman School Park Project. Construction
is anticipated to begin June 2026, with completion estimated in Summer 2027.
Recommendation: Recommended the City Council:
1. Award a construction contract to the lowest responsive/responsible bidder,
Horizons Construction Company Int'I Inc. in the amount of $6,324,767.70 for
the Heideman School Park Project and authorize the Mayor and the City Clerk
to execute the contract documents on behalf of the City; and
2. Appropriate $2,583,196 from Park Development Fund (Fund 131).
Fiscal Impact: The adopted Fiscal Year 2025-2026 Capital Improvement Program
budget includes funding in the amount of $5,042,804 from Proposition 68 Statewide
Parks Program Grant for the Heideman School Park project. Of this grant amount,
$200,000 has been spent on pre -construction activities and the remaining
$4,842,804 is available for the construction phase.
City Council April 21, 2026
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The total construction cost as outlined below is $7,426,000. The requested
appropriation of $2,583,196 is required to fully fund the Heideman School Park
Project, the Park Development Fund (Fund 131) has sufficient funds to support the
above appropriation request.
Construction expenses include:
Construction Contract...............................................................$6,324,767.70
Contingency(10%)......................................................................$633,232.30
Construction Support...................................................................$468,000.00
Total Budget............................................................................ $7,426,000.00
PUBLIC HEARING ITEMS 8 & 9
8. COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN FOR
PROGRAM YEAR 2026-2027
The Housing and Community Development Act of 1974 established the Community
Development Block Grant program to provide federal funding to local communities
for viable urban development, including decent housing, suitable living environments,
and expanded economic opportunities for low- and moderate -income persons.
Every five years, the City of Tustin prepares a five-year Consolidated Plan identifying
local needs related to affordable housing, supportive services, community
development, and economic opportunity. The attached Annual Action Plan
implements the Consolidated Plan's goals and objectives for the 2026-27 program
year and acts as the City's application for Community Development Block Grant
funding.
Recommendation: Recommend the City Council adopt Resolution No. 26-14:
Approving the program year 2026-27 Annual Action Plan and funding allocations
totaling $772,043 in Community Development Block Grant funds; and
Authorizing the Community Development Director to submit the Annual Action Plan
to the federal Department of Housing and Urban Development and make minor
modifications to the Action Plan including executing documents, certifications,
contracts, or other items as may be required to carry out the Community
Development Block Grant program.
RESOLUTION NO. 26-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
APPROVING THE ANNUAL ACTION PLAN FOR PROGRAM YEAR 2026-27
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR
SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
City Council April 21, 2026
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Fiscal Impact: The proposed 2026-27 Annual Action Plan programs and
expenditures will be funded through the Community Development Block Grant. The
City anticipates a Program Year 2026-27 allocation of $772,043. No General Fund
impact is anticipated.
9. CONDUIT FINANCING FOR USA TUSTIN LEGACY 5 & 6 APARTMENTS
PROJECT
Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act
("TEFRA") on April 21, 2026 in connection with the proposed issuance of revenue
bonds by the California Municipal Finance Authority (the "CMFA"), a joint exercise of
powers authority and public entity of the State of California, in an amount not to
exceed $80,000,000, (the "Bonds"), to finance and refinance the acquisition,
construction, development and equipping of a 334-unit (including four manager's
units) multifamily rental housing project located on an approximately 5.46-acre site
generally bounded by Warner Avenue to the north, Compass Avenue to the west,
Legacy Road to the east and Airship Avenue to the south (the "Project") in the City
of Tustin.
Recommendation: Recommend the City Council:
1. CONDUCT A PUBLIC HEARING UNDER THE REQUIREMENTS OF TEFRA
AND THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE"); and
2. ADOPT RESOLUTION 26-19, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN APPROVING A PLAN OF FINANCE INCLUDING THE
ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING
PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND
REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE
BENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN OTHER
MATTERS RELATING THERETO
RESOLUTION NO. 26-19
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING A
PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS
BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE
OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO
FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT
FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN
OTHER MATTERS RELATING THERETO
Fiscal Impact: The Bonds to be issued by the CMFA for the Project will be the sole
responsibility of the borrower, Tustin 738, L.P., and the City will have no financial and
legal obligations, liability or responsibility for the Project or the repayment of the
Bonds for the financing of the Project. All financing documents with respect to the
City Council April 21, 2026
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issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations
of the City of Tustin, the County of Orange, or the State of California but are to be
paid for solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a
California nonprofit public benefit corporation (the "Foundation"), acts as the Board
of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares
a portion of the issuance fees it receives with its member communities and donates
a portion of these issuance fees to the Foundation for the support of local charities.
With respect to the City of Tustin, it is expected that a portion of the issuance fee
attributable to the City will be granted by the CMFA to the general fund of the City.
Such grant may be used for any lawful purpose of the City. The Borrower will be the
beneficiary of the CMFA's charitable donation through a 25% reduction in issuance
fees.
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, May 5, 2026, for the Closed
Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.
City Council April 21, 2026
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