CITY OF TUSTIN REGULAR MEETING
OF THE CITY COUNCIL
John Nielsen, Mayor Pro Tem
Ryan Gallagher, Councilmember
Ray Schnell, Councilmember
Lee K. Fink, Councilmember
Austin Lumbard, Mayor
MARCH 18, 2025
300 CENTENNIAL WAY, TUSTIN
Aldo E. Schindler, City Manager
David E. Kendig, City Attorney
Erica N. Yasuda, City Clerk
AGENDA
PUBLIC INPUT INSTRUCTIONS
PUBLIC INPUT - ERIC HIGUCHI (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - GRACE HONG (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - KEVIN JWO (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - BEN LIN (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - JULIE YEH (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - JUSTIN LAM (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - LILI HUANG (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - KUE JAP (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - COCO SHEN (ITEM 6-EMAIL COMMENT)
PUBLIC INPUT - ALEXANDRA SHAW (ITEM 6-EMAIL COMMENT)
CLOSED SESSION MEETING OF THE CITY COUNCIL
- 4:30 P.M.
CALL TO ORDER – #3074
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. CONFERENCE WITH REAL PROPERTY NEGOTIATORS - [Government Code § 54956.8] (1 case) A.
Property Address/Description: APN: 430-481-02, 430-481-03, 430-481-04, 430-481-05 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 of Real Property; Kenneth Piguee, Real Property Manager Negotiating Parties: Irvine Company
Under Negotiation: Price and Terms of Payment
5. LABOR NEGOTIATIONS - [Government Code § 54957.6]:
Agency Negotiators: Derick Yasuda, Director of Human Resources and Peter Brown, Liebert Cassidy Whitmore Employee Organization: Tustin Police Officers Association (TPOA) Employee Organization: Tustin Police Management Association (TPMA)
REGULAR MEETING OF THE CITY COUNCIL
- 6:00 P.M.
CALL TO ORDER – #3074
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
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 Item 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 MARCH 4, 2025.
Recommendation
: That the City Council approve the Action Minutes of the City Council Meeting held on March 4, 2025.
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 $1,015,662.70 and Demands in the amount of $6,044,434,82.
AGENDA REPORT
4. APPROVAL OF CONTRACT WITH HEWLETT PACKARD ENTERPRISE COMPANY FOR A NEW DATA STORAGE SOLUTION The City uses Dell SC, also known as Compellent, for data storage. The Compellent platform has reached the end of its life and Dell will no longer provide technical support after 2026. Staff have identified a replacement solution and are requesting the City Council’s approval to execute a contract with Hewlett Packard Enterprise for a new data storage solution.
Recommendation
: It is recommended that the City Council approve Resolution 25-20 to authorize the City Manager to execute necessary contract documents with Hewlett Packard Enterprise for a new data storage solution.
RESOLUTION NO. 25-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING USE OF THE NATIONAL ASSOCIATION OF STATE PROCUREMENT OFFICIALS (NASPO) VALUEPOINT PURCHASING PROGRAM TO PURCHASE DATA STORAGE EQUIPMENT Fiscal Impact: The proposed Hewlett Packard data storage solution has a no-to-exceed amount of $325,000. Sufficient budget has been appropriated in the Fiscal Year 2024-2025 Information Technology Fund to support this project.
AGENDA REPORT
5. AUTHORIZE USE OF THE OMNIA PARTNERS PURCHASING PROGRAM FOR THE POLICE DEPARTMENT IMPROVEMENTS PROJECT Staff is requesting authorization to utilize OMNIA Partners Purchasing Program to acquire furniture for the Police Department Improvements Project.
Recommendation
: It is recommended that the City Council:
1. Adopt Resolution No. 25-14 authorizing use of the OMNIA Partners Purchasing Program to purchase furniture and installation services for the Police Department Improvements Project in the not-to-exceed amount of $356,007.57; and
2. Authorize the City Manager and the City Clerk to execute the contract documents on behalf of the City.
RESOLUTION NO. 25-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING USE OF THE OMNIA PARTNERS PURCHASING PROGRAM TO PURCHASE FURNITURE AND INSTALLATION SERVICES FOR THE POLICE DEPARTMENT IMPROVEMENTS PROJECT, CIP NO. 10086
Fiscal Impact: Sufficient funds have been appropriated in the Fiscal Year 2024-2025 General Fund Capital Improvement Program Budget for the Police Department Improvements Project, Capital Improvement Program project 10086.
AGENDA REPORT
6. DISPOSITION AND DEVELOPMENT AGREEMENT WITH TUSTIN LEGACY ACQUISITION LLC (IRVINE COMPANY) FOR PORTIONS OF DISPOSITION AREAS 2B, 2C AND 8 AT TUSTIN LEGACY Request for authorization to approve the Disposition and Development Agreement (DDA) between Tustin Legacy Acquisition LLC (Irvine Company) and the City for the development of a residential apartment community consisting of 1,336 rental units on approximately 19.4 acres with a total of 25% of the residential units affordable to lower income households. The DDA specifies the terms and conditions under which the City owned property, known as portions of Disposition Areas 2B, 2C and 8, and bounded by Warner Avenue, Legacy Road, Tustin Ranch Road and Compass Avenue in Planning Areas 13 and 14 of Tustin Legacy, will be conveyed to and developed by Tustin Legacy Acquisition LLC. The purpose of the DDA is to implement the Reuse Plan for Marine Corps Air Station Tustin (MCAS Tustin) and the Specific Plan for Tustin Legacy through the development and maintenance of the property.
Recommendation
: 1. Authorize the City Manager to execute the DDA between Tustin Legacy Acquisition LLC and the City in the form attached hereto subject to any non-substantive modifications as may be recommended by the City's special real estate counsel or the City Attorney; and
2. Authorize the City Manager to take all actions and execute all other agreements necessary or appropriate to implement the DDA.
Fiscal Impact: The property will be disposed of in a single takedown for a purchase price of $42,100,000.00. In addition to the purchase price, Tustin Legacy Acquisition LLC will also pay to the City a Project Fair Share Contribution of $9,584,714.53 to fund backbone infrastructure improvements at Tustin Legacy. A brokerage commission of 1% of the purchase price will be paid by Tustin Legacy Acquisition LLC to the City's broker, CBRE, at the close of escrow. Upon execution of the DDA, Tustin Legacy Acquisition LLC will submit a $5,000,000.00 good faith deposit into escrow, which will be applicable towards the purchase price at the close of escrow.
The Tustin Unified School District (TUSD) created Community Facilities District (CFD) 15-2 for portions of Tustin Legacy to fund new facilities such as the new middle school and high school (Legacy Magnet Academy). The source of funds for constructing facilities are: 1) statutory and development fees collected when building permits are issued and 2) Community Facilities District fees collected on a project-by-project basis either at the time of conveyance to a developer or assessed to the property owners in the form of bonds. The transaction has been structured to allow the developer/owner to assume the obligation of paying special taxes associated with bonding under CFD 15-2; however, the City maintains the option, in its sole discretion, to make a prepayment of an agreed upon sum at the close of escrow to release the lien of CFD 15-2 on the subject property.
Negotiation costs, such as legal, third-party consultants and staff costs incurred by the City are reimbursed by Tustin Legacy Acquisition LLC in accordance with the Exclusive Negotiation Agreement (ENA). Upon execution of the DDA, Tustin Legacy Acquisition LLC shall submit an additional City Costs Deposit to bring the deposit account balance up to $50,000.00 to pay for the City's staff costs and third-party out-of-pocket expenses incurred by the City in implementing the DDA through issuance of a final Certificate of Compliance or in the event the DDA is terminated prior to conveyance. Tustin Legacy Acquisition LLC shall replenish the City Costs Deposit as needed to cover all of the City's Transaction Expenses.
This project will be annexed into a future Zone 3 of the City Community Facilities District 18-01 prior to close of escrow, which has been established to cover service costs at Tustin Legacy (police and fire; recreation program services; maintenance of parks, streets, sidewalks and drainage facilities) due to the discrepancy in property tax revenue (3% of the basic levy (1.0%) at Tustin Legacy versus approximately 10.5% City-wide). The Rate and Method of Apportionment specific to this project will require City Council consideration and approval at a later date. The negotiated rate attributable to market rate apartments will be $1,364.28 per dwelling unit with affordable dwelling units exempted. The rate will escalate annually based on a specific Consumer Price Index with a minimum annual escalation of 2% and a maximum of 3%.
AGENDA REPORT
7. 2023-2024 CERTIFIED LOCAL GOVERNMENT ANNUAL REPORT
The City of Tustin is certified by the State of California to carry out the National Historic Preservation Act of 1966. As a Certified Local Government (CLG), the City is required to submit to the California State Office of Historic Preservation an annual report reflecting the participation and qualifications of the City’s Commissioners and information related to historic preservation actions, activities, and programs. The City of Tustin’s 2023-2024 Certified Local Government Annual Report (Attachment 1) reflects a reporting period of October 1, 2023, through September 30, 2024.
Recommendation
: That the City Council:
*Receive and file the 2023-2024 CLG Annual Report; and
* Direct staff to forward the Annual Report to the State Office of Historic Preservation.
Fiscal Impact: All activities completed during this reporting period received City Council approval and budget appropriation.
AGENDA REPORT
8. 2024 HISTORIC AND CULTURAL RESOURCES ADVISOR ANNUAL REPORT AND 2025 HISTORIC AND CULTURAL RESOURCES ADVISOR WORK PROGRAM This report provides the City Council with the required annual report summarizing the accomplishments and actions taken by the Planning Commission, acting as the Historic and Cultural Resources Advisor, during the 2024 calendar year and the establishment of the 2025 annual work program.
Recommendation
: That the City Council receive and file the 2024 accomplishments shown in this report and the 2025 Historic and Cultural Resources Advisor Work Program, as described in Attachment C.
Fiscal Impact: All activities completed during the 2024 calendar year received City Council approval and budget appropriation.
AGENDA REPORT
9. 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, and January 21, 2025, the 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.
Recommendation
: It is recommended that the City Council adopt Resolution 25-19 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.
RESOLUTION 25-19
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 is no direct impact from a determination that a local emergency continues to exist. However, the proclamation of emergency may aid the City in qualifying for emergency assistance from Federal, State and local agencies in unknown amounts.
AGENDA REPORT
10. 2024 ANNUAL REPORT ON THE IMPLEMENTATION OF THE GENERAL PLAN AND HOUSING ELEMENT The California Government Code requires the City Council to annually review the City’s progress in implementing the Tustin General Plan, with specific emphasis on the Housing Element. This includes the progress in meeting Tustin’s share of regional housing needs, and Tustin’s efforts to remove barriers that restrict housing development, maintenance, and improvement.
With Council authorization, staff will forward the General Plan Annual Report and Housing Element Progress Report to the California Department of Housing and Community Development and Governor’s Office of Land Use and Climate Innovation, as required by the California Government Code.
Recommendation
: That the City Council receive and file the General Plan Annual Report and the Housing Element Progress Report, and authorize staff to submit it to the Governor's Office of Land Use and Climate Innovation and California Department of Housing and Community Development.
Fiscal Impact: There is no fiscal impact associated with this item.
AGENDA REPORT
11. 2024 TUSTIN LEGACY SPECIFIC PLAN MITIGATION MONITORING AND REPORTING PROGRAM ANNUAL REPORT The City Council annually reviews its progress in mitigating environmental impacts associated with the development of the former Marine Corps Air Station Tustin, which is currently undergoing redevelopment in accordance with the Tustin Legacy Specific Plan. This annual review is based on documents prepared pursuant to the California Environmental Quality Act, including the Program Final Environmental Impact Statement/Environmental Impact Report for the Disposal and Reuse of Marine Corps Air Station Tustin, subsequent Supplementals and Addendums to the Environmental Impact Reports, and their Mitigation Monitoring and Reporting Programs.
Recommendation
: That the City Council receive and file the Tustin Legacy Annual Mitigation Monitoring Status Report.
Fiscal Impact: There is no fiscal impact associated with this item.
AGENDA REPORT
12. SECOND READING AND ADOPTION OF ORDINANCE NO. 1563 - COMMISSION APPOINTMENT PROCESS California law provides that an elected Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute. Adoption of Ordinance No. 1563 conforms the provisions in the Tustin City Code regarding appointments to the City commissions to the requirements of State law.
Recommendation
: That the City Council have second reading by title only and adoption of Ordinance No. 1563.
ORDINANCE NO. 1563
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, COMMISSION APPOINTMENT PROCESS IN THE TUSTIN CITY CODE Fiscal Impact: There is no fiscal impact associated with this item.
AGENDA REPORT
13. SELECTION OF A COMMERCIAL REAL ESTATE BROKER FOR MARKETING AND SOLICITATION SERVICES FOR PLANNING AREA 10 OF THE PACIFIC CENTER EAST SPECIFIC PLAN Request for selection of a commercial real estate broker to provide marketing and solicitation services for Planning Area 10 of the Pacific Center East Specific Plan comprised of approximately 11 acres of City-owned real property.
Recommendation
: Authorize the City Manager to negotiate and execute a Listing Agreement with Jones Lang LaSalle IP, Inc. (JLL), subject to non-substantive additions or modifications as may be deemed necessary and/or recommended by the City Attorney.
Fiscal Impact: There will be no impact to the General Fund given that commission to a commercial real estate broker is paid by the buyer or lessee at close of escrow on a land sale or execution of a ground lease. However, the following tiered commission structure has been negotiated with the recommended broker, JLL, which is consistent with industry standards.
Land Sale:
3.0% of gross purchase price up to the first $10,000,000.00
2.0% of gross purchase price between $10,000,000.00 to $20,000,000.00
1.0% of gross purchase price exceeding $20,000,000.00
Ground Lease:
4.0% of the total lease payments for Years 1-5
2.0% of the total lease payments for Years 6-10
*Commission to be capped at first 10 years of ground lease payments.
AGENDA REPORT
OTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY
ALDO E. SCHINDLER, CITY MANAGER
DAVID E. KENDIG, CITY ATTORNEY
MAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND REPORTS
COUNCILMEMBER FINK
COUNCILMEMBER SCHNELL
COUNCILMEMBER GALLAGHER
MAYOR PRO TEM NIELSEN
MAYOR LUMBARD
ADJOURNMENT
- The next meeting is scheduled on Tuesday, April 1, 2025, for the Closed Session Meeting at 4:30 p.m. and the Regular Business Meeting at 6:00 p.m.