CITY OF TUSTIN REGULAR MEETING
OF THE CITY COUNCIL
Letitia Clark, Mayor Pro Tem
Ryan Gallagher, Councilmember
Rebecca Gomez, Councilmember
Ray Schnell, Councilmember
Austin Lumbard, Mayor
DECEMBER 5, 2023
300 CENTENNIAL WAY, TUSTIN
Nicole Bernard, Acting City Manager
David E. Kendig, City Attorney
Erica N. Yasuda, City Clerk
AGENDA
PUBLIC INPUT INSTRUCTIONS
PRESENTATION - NAVY NORTH HANGAR STATUS REPORT
PRESENTATION - ITEM 14 (WATER RATES)
PRESENTATION - ITEM 15 (DOWNTOWN COMMERCIAL CORE & RED HILL SPECIFIC PLAN)
CLOSED SESSION MEETING OF THE CITY COUNCIL
- 5:30 P.M.
CALL TO ORDER #3049
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): (3 cases)
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 - Initiation of litigation pursuant to Government Code § 54956.9(d)(4): (1 case) - enforcement, specific performance and/or foreclosure for default on affordable housing covenants.
4. 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 potential release of hazardous materials therefrom
5. PUBLIC EMPLOYMENT - Cal. Gov’t Code § 54957(b)(1). Title: City Manager
REGULAR MEETING OF THE CITY COUNCIL AND TUSTIN HOUSING AUTHORITY - 7:00 P.M.
CALL TO ORDER – #3049
INVOCATION - Deacon Bill Weeks, St. Cecilia Church
PLEDGE OF ALLEGIANCE – Mayor Lumbard
PRESENTATION - Navy North Hangar Status Report
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 ITEMS - 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 - 13)
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 REGULAR MEETING OF THE CITY COUNCIL HELD ON NOVEMBER 21, 2023.
Recommendation:
That the City Council approve the Action Minutes of the Regular Meeting of the City Council held on November 21, 2023.
Agenda Report
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 $1,009,312.48 and Demands in the amount of $1,857,489.03.
Agenda Report
4. FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT – TEMPORARY SHELTER, INC Request for authorization to enter into a First Amendment to the Contractor Services Agreement (“CSA”) with Temporary Shelter, Inc., to extend the operations of the Tustin Temporary Emergency Shelter (“TTES”) from July 1, 2024 through June 30, 2026 and approve a fund appropriation for separate consulting services to evaluate long term- shelter options.
Recommendation:
The Tustin Housing Authority Commissioners take the following action:
* Approve the 1st Amendment to the Contractor Services Agreement between Temporary Shelter, Inc. and the City of Tustin and Tustin Housing Authority.
The City Council take the following actions:
* Authorize the Acting City Manager and Acting Housing Authority Executive Director to execute the First Amendment to the Contractor Services Agreement with Temporary Shelter, Inc. to extend operations of the Tustin Temporary Emergency Shelter, subject to any non-substantive modifications as may be deemed necessary and/or recommended by the City Attorney; and * Appropriate $100,000 from the General Fund for City Attorney and consultants as needed to assist in the evaluation, analysis, and development of long-term shelter options.
Agenda Report
5. MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT
The Local Transportation Authority Ordinance No. 3 requires the City to adopt an annual Expenditure Report to account for the Net Revenues, developer/traffic impact fees, and funds expended by the City, which satisfy the Maintenance of Effort (MOE). The Orange County Transportation Authority (OCTA) established the MOE benchmark in conjunction with passage of the original Measure M. MOE is a requirement that the City expend local funds on transportation related projects each fiscal year in order to be eligible to receive Measure M2 Fairshare funds; the City’s required MOE expenditure for Fiscal Year 2022-23 is $1,697,045.
Recommendation:
It is recommended that the City Council adopt Resolution No. 23-62, adopting the Measure M2 Expenditure Report for Fiscal Year 2022-2023 (attached), and direct staff to file the report with the Orange County Transportation Authority.
RESOLUTION NO. 23-62
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 Agenda Report
6. FISCAL YEAR 2022-2023 DEVELOPMENT IMPACT FEE REPORT (AB 1600) 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.
Recommendation:
Receive and file.
Agenda Report
7. APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT FOR BIDS FOR THE CENTENNIAL PARK IMPROVEMENT PROJECT CIP NO. 20090 The plans and specifications for the Centennial Park Improvement Project (CIP No. 20090) have been substantially completed pending final approval by the City Engineer.
Recommendation:
It is recommended that the City Council:
1. Adopt Resolution No. 23-58 approving the plans and specifications for the Centennial Park Improvement Project (CIP No. 20090); and
2. Authorize the City Clerk to advertise to receive bids; subject to the final approval by the City Engineer.
RESOLUTION NO. 23-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING PLANS AND SPECIFICATIONS FOR THE CENTENNIAL PARK IMPROVEMENT PROJECT CIP NO. 20090 AND AUTHORIZING ADVERTISEMENT FOR BIDS Agenda Report
8. SECOND READING AND ADOPTION OF ORDINANCE NO. 1539 (DEVELOPMENT AGREEMENT 2023-0001 BETWEEN THE CITY OF TUSTIN AND OUTFRONT MEDIA, LLC. - 1021 EDINGER AVENUE) Adoption of Ordinance No. 1539 approves Development Agreement 2023-0001 between the City of Tustin and Outfront Media, LLC. in association with Conditional Use Permit 2023-0008 for a freeway adjacent digital display billboard at the city-owned property located at 1021 Edinger Avenue.
At the last meeting, Councilmember Schnell asked about the ability of the digital billboard to transmit an emergency message immediately upon notice. While the actual process and timing on displaying emergency messages is still being developed, Outfront Media is committed to working with the City on displaying emergency messages as soon as possible.
Recommendation:
That the City Council have second reading by title only and adoption of Ordinance No. 1539.
ORDINANCE NO. 1539
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, APPROVING DEVELOPMENT AGREEMENT 2023-0001 BETWEEN THE CITY OF TUSTIN AND OUTFRONT MEDIA, LLC. IN ASSOCIATION WITH CONDITIONAL USE PERMIT 2023-0008 FOR A FREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT THE CITYOWNED PROPERTY LOCATED AT 1021 EDINGER AVENUE Agenda Report
9. OVERVIEW OF LAND USE OPTIONS FOR HOUSING ELEMENT REZONING PROGRAM The City’s adopted Housing Element currently identifies a Rezoning Program that establishes eighteen (18) housing element sites zoned for mixed-use development. These eighteen (18) sites accommodate the City’s obligation under the Regional Housing Needs Allocation (RHNA). This report addresses how City staff intends to propose to comply with the Housing Element Law’s restrictions on rezoning sites that include mixed-use zoning.
This report clarifies that City staff proposes to designate a few of the housing inventory sites for “residential use only” development in accordance with the Housing Element, such that non-residential uses would be prohibited on those sites. By doing so the remaining housing inventory sites will maintain the land use flexibility currently allowed by the City Code. The sites to be designated for residential uses only include a portion of land at The Market Place shopping center that is currently used for parking and a portion of Neighborhood D North within the Tustin Legacy Specific Plan (TLSP).
Recommendation:
That the City Council receive and file this staff report.
Agenda Report
10. 2024 MAYORAL APPOINTMENTS TO COMMITTEES
Annually the Mayor appoints those members of the City Council who will serve on various City and Regional committees.
Recommendation:
That the City Council:
1. Confirm the attached appointments as recommended by the Mayor; and
2. Adopt FPPC Form 806: Agency Report of Public Official Appointments and direct staff to post on the City's website.
Agenda Report
11. PART-TIME NON-BENEFITTED EMPLOYEES COMPENSATION AND BENEFITS Adoption of the attached Resolution will authorize modified terms and conditions of employment for unrepresented Part-Time Non-Benefitted employees as required by State law.
Recommendation:
Adopt Resolution No. 23-61 to update the Part-Time Non-Benefitted Employees Salary Resolution.
RESOLUTION NO. 23-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN RELATING TO COMPENSATION FOR UNREPRESENTED PART-TIME NON-BENEFITTED EMPLOYEES AND SUPERSEDING RESOLUTION 22-53 Agenda Report
12. 2024 LOCAL APPOINTMENTS LIST
Prior to December 31st of each year, the Maddy Act requires municipal agencies to prepare and post a listing of all Commission/Committee vacancies for the upcoming year.
Recommendation:
Approve the 2024 Local Appointments List for the Planning Commission, Community Services Commission, Audit Commission, Building Board of Appeals and Public Art Committee and post notice as required by law.
Agenda Report
13. AUTHORIZING THE COMMENCEMENT OF PROCEEDINGS IN CONNECTION WITH THE PROPOSED ISSUANCE OF A PRIVATE PLACEMENT FINANCING TO FUND CERTAIN CAPITAL IMPROVEMENT PROJECTS OF THE TUSTIN WATER ENTERPRISE, CONFIRMING THE APPOINTMENT OF PROFESSIONAL SERVICES AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH As part of the Tustin Water Enterprise’s (Enterprise) annual review and its 2023 cost-of-service analysis, the City’s consultants advised that the Enterprise needs additional resources to meet its ongoing infrastructure improvement obligations for the next three years. Staff has determined that the issuance of a private placement financing can provide the necessary capital funding. Staff is requesting the City Council’s approval to authorize the initiation of proceedings to issue private placement financing of $4 million plus issuance costs to fund certain improvement projects that are outlined in the Enterprise’s five-year capital plan.
Recommendation:
It is recommended that: The City Council adopt Resolution 23-60 entitled: Resolution Authorizing The Commencement Of Proceedings In Connection With The Proposed Issuance Of A Private Placement Financing To Fund Certain Capital Improvement Projects Of The Tustin Water Enterprise, Confirming The Appointment Of Professional Services And Authorizing Certain Other Actions In Connection Therewith.
RESOLUTION NO. 23-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE COMMENCEMENT OF PROCEEDINGS IN CONNECTION WITH THE PROPOSED ISSUANCE OF A PRIVATE PLACEMENT FINANCING TO FUND CERTAIN CAPITAL IMPROVEMENT PROJECTS OF THE TUSTIN WATER ENTERPRISE, CONFIRMING THE APPOINTMENT OF PROFESSIONAL SERVICES AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Agenda Report
PUBLIC HEARING ITEM 14
14. ADOPTION OF RETAIL WATER RATES - PUBLIC HEARING RESOLUTION 23-59 The City’s consultant, IB Consulting, completed a draft Cost-of-Service Rate Study (Study) for the City’s Water Enterprise (Enterprise) and developed proposed water rates to meet ongoing operational, maintenance, and capital needs while maintaining the requirements of existing bond covenants. City staff requests that the City Council hold a Public Hearing to consider the adoption of proposed water rates. A notice of the proposed water rate adjustment was prepared in accordance with Proposition 218 and mailed directly to 14,852 customers and property owners on October 20, 2023. As of the published date of this report, the City has received twenty-two written protest to the proposed water rates.
Recommendation:
Staff recommends that the City Council:
1. Conduct a Public Hearing to receive testimony on the proposed water rates for Fiscal Year 2023-2024 through Fiscal Year 2027-2028; and
2. Adopt Resolution No. 23-59 approving the proposed water rates for the Fiscal Year 2023-2024 through the Fiscal Year 2027-2028 with effective dates of January 1, 2024; January 1, 2025; January 1, 2026; January 1, 2027; and January 1, 2028.
RESOLUTION NO. 23-59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADJUSTING WATER RATES PROVIDED BY THE CITY OF TUSTIN Agenda Report
REGULAR BUSINESS ITEMS 15-16
15. DOWNTOWN COMMERCIAL CORE AND RED HILL AVENUE SPECIFIC PLAN REASESSMENT REPORT As directed by the City Council during the City’s Midpoint Strategic Plan Update in 2021, an analysis of the Downtown Commercial Core Specific Plan (DCCSP) and the Red Hill Avenue Specific Plan (RHASP) was initiated in 2022 to identify potential plan revisions that align development regulations with the real estate market. The City contracted with Economic Planning Systems (EPS), Inc. to assess the DCCSP and RHASP ("Plan Areas") and provide a summary of findings and policy options. EPS presented their initial report to the Mayor’s Economic Development Ad-Hoc Committee, comprised of Mayor Austin Lumbard and Councilmember Ryan Gallagher.
The following recommendations are presented to the City Council on behalf of the Mayor’s Economic Development Ad-Hoc Committee.
Recommendation:
That the City Council:
1. Receive and file the Downtown Commercial Core and Red Hill Avenue Specific Plan Reassessment report prepared by Economic Planning Systems, Inc.;
2. Direct staff to prepare resolutions for applicable policy options identified in the Ad-Hoc Committee's recommendation list, and agendize those for the City Council consideration on or before February 20, 2024;
3. Direct staff to prepare an agenda report further describing and outlining the scope of amendments to the Specific Plans and/or Tustin City Code for applicable policy options identified in the Ad-Hoc recommendation list, on or before March 19, 2024; and,
4. Direct staff to prepare an agenda report further describing and outlining the strategy initiatives identified in the Ad-Hoc recommendation list, on or before April 16, 2024.
Agenda Report
16. MAYOR PRO TEM SELECTION
The City Council selects a member of the Council who will serve as Mayor Pro Tem for the following year.
Recommendation:
Pleasure of the City Council.
Agenda Report
ITEM FROM THE SPECIAL MEETING OF THE CITY COUNCIL
CITY COUNCIL ACTION TO DEMAND NAVY ACCOUNTABILITY AND ENVIRONMENTAL/PUBLIC HEALTH AGENCY GUIDANCE CONCERNING THE NAVY NORTH HANGAR INCIDENT
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
COUNCIL MEMBER COMMENTS AND REPORTS
ADJOURNMENT
- The next meeting is scheduled on Tuesday, December 19, 2023, for the Closed Session Meeting at 5:30 p.m. and the Regular Business Meeting at 7:00 p.m.