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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 r 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 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 April 21, 2026 Meeting Agenda Page 1 of 9 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 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 Meeting Agenda Page 3 of 9 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. City Council April 21, 2026 Meeting Agenda Page 4 of 9 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 - City Council April 21, 2026 Meeting Agenda Page 5 of 9 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 Meeting Agenda Page 6 of 9 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 Meeting Agenda Page 7 of 9 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 Meeting Agenda Page 8 of 9 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 Meeting Agenda Page 9 of 9