Agenda Item _______
Reviewed:
City Manager _______
Finance Director _______
MEETING DATE: SEPTEMBER 1, 2026
TO: ALDO E. SCHINDLER, CITY MANAGER
FROM: DAVID KENDIG, CITY ATTORNEY
SUBJECT: FIRST READING OF ORDINANCE 1582 AMENDING TUSTIN CITY CODE CHAPTER 4, SECTION 1415 - POWERS AND DUTIES GENERALLY
SUMMARY
Ordinance No. 1582 proposes updates to the Tustin City Code necessary to achieve consistency with prior voter-authorized amendments to the City Code and with existing practices established in the City’s Personnel Rules and Memoranda of Understanding.
RECOMMENDATION
It is recommended that the City Council:
1. Introduce and approve first reading by title only of Ordinance No. 1582 amending Tustin City Code section 1415; and
2. Schedule adoption of Ordinance No. 1582 at the City Council’s Regular Meeting on September 15, 2026.
FISCAL IMPACT
No direct fiscal impact is anticipated as a result of adopting Ordinance No. 1582.
STRATEGIC PLAN
Updating the Tustin City Code to conform to the City’s established Personnel Rules, and the adopted MOUs with all of the City’s bargaining units advances Goal E of the City’s Strategic Plan (“Organization Excellence and Customer Service”) to be a high performance organization with effective customer service provided by a professional workforce.
BACKGROUND AND DISCUSSION
Prior Voter Approval and Council Direction
In November of 2010, the voters of the City of Tustin approved an initiative that changed the position of City Clerk from an elected position to an appointive position effective
AGENDA REPORT
10 N/A
Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D City Council Agenda Report
First Reading of Ordinance 1582 Amending Tustin City Code September 1, 2026
upon the expiration of the term of the then-elected City Clerk in 2012. The initiative ordinance approved by the voters provided that the City Council could, by adoption of an ordinance, authorize the City Manager to appoint the City Clerk. Accordingly, in September of 2012, the City Council approved Ordinance No. 1417 amending Tustin City Code section 1413 to vest the City Manager with the authority to appoint the City Clerk.
On February 18, 2020, the City Council unanimously approved a motion appointing the City’s Finance Director to be the City’s Treasurer, and the functions have been performed by the Finance Director position ever since.
A separate section of the Tustin City Code designates the City Manager as the Director of Personnel with the authority to appoint, promote, discipline, demote, remove, reassign, or dismiss all department heads, officers, and employees of the City – except the City Clerk, City Treasurer (and City Attorney). (Tustin City Code section 1415c.)
To achieve consistency with the City Council’s past delegation of authority to the City Manager to appoint the City Clerk, and to achieve consistency in the authority over management of the City Clerk and the City Treasurer (a position which is currently appointed by the City Council), it is recommended that the City Council adopt the attached ordinance to amend section 1415 such that the City Manager will have the authority to appoint, promote, discipline, demote, remove, reassign, or dismiss both the City Clerk and the Finance Director/Treasurer in the same manner as all other department heads and employees of the City.
Merit Pay Provisions
An additional proposed amendment of section 1415 is intended to conform that section’s merit pay provisions to the City’s existing and proposed Personnel Rules as well as the adopted MOUs for all of the City’s bargaining units. In practice and in accordance with these policies, the City Manager is ultimately responsible for approving all merit increases.
As authorized by the Personnel Rules, the City Manager can delegate any of his powers as Personnel Officer. The practice for several decades is that the City Manager has delegated authority to department heads to approve ordinary merit increases, i.e. moving from one step to the next on the timeline specified in the Personnel Rules.
It is rare that an employee receives a merit increase that deviates from the normal process, but it does happen occasionally. The following is the language in the Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D City Council Agenda Report
First Reading of Ordinance 1582 Amending Tustin City Code September 1, 2026
Memoranda of Understanding with the labor organizations and updated Personnel Rules that provides the City Manager with authority for these “special salary adjustments” (with similar language in the current Personnel Rules):
Notwithstanding anything in these Rules to the contrary, the City Manager may, upon recommendation of the Department Head, adjust the salary rate of an incumbent of a particular position to any step within the salary range for that class. A special salary adjustment will only be approved in limited circumstances, such as to retain an employee who has received a confirmed offer of employment from another employer, to correct gross inequities, or to reward outstanding achievement and performance.
To achieve consistency between the City Code and the Personnel Rules, MOUs and established practice, it is recommended that the following two sentences in Tustin City Code section 1415 be revised as follows:
Current: For all department heads, officers and employees, normal merit pay increases will be approved or denied by the City Manager. Exceptional merit pay increases for all department heads, officers and employees must be approved by the City Council.
Proposed: For all department heads, officers and employees, merit pay increases will be approved or denied by the City Manager.
Based on the foregoing, it is recommended that the City Council conduct first reading by title only of proposed Ordinance 1582 to make the following revisions to Tustin City Code section 1415 (redlined for ease of review):
“It shall be the duty of the City Manager to act as Director of Personnel. He shall have the authority to appoint, promote, discipline, demote, remove, reassign, or dismiss all department heads, officers, and employees of the City, except the City Clerk, the City Treasurer, and the City Attorney, subject to any and all applicable rules, regulations, position allocations and financial appropriations. All department heads, officers, and employees shall perform their duties subject to the direction of the City Manager or that of the superior to whom the Manager may assign such officer or employer. Provided, that the Manager may delegate to any other department head, officer or employee the authority to hire or discharge any employees or officers so designated by the Manager. For all department heads, officers and employees, normal merit pay increases will be approved or denied by the City Manager. Exceptional merit pay increases for all Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D City Council Agenda Report
First Reading of Ordinance 1582 Amending Tustin City Code September 1, 2026
department heads, officers and employees must be approved by the City Council.
_________________________
David E. Kendig
City Attorney
Attachments:
1. Proposed Ordinance No. 1582 Amending Tustin City Code Chapter 4, Section 1415 - Powers and Duties Generally
Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D ORDINANCE NO. 1582
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING CITY CODE CHAPTER 4, SECTION 1415 - POWERS AND DUTIES
GENERALLY
SECTION I: Subsection c (Powers as Director of Personnel) of Section 1415 (Powers and Duties Generally) of Part 1 (City Administrator) of Chapter 4 (City Officers) of Article 1 (Administration) of the Tustin City Code is amended to read in its entirety as follows:
c It shall be the duty of the City Manager to act as Director of Personnel.
He shall have the authority to appoint, promote, discipline, demote, remove, reassign, or dismiss all department heads, officers, and employees of the City, except the City Attorney, subject to any and all applicable rules, regulations, position allocations and financial appropriations. All department heads, officers, and employees shall perform their duties subject to the direction of the City Manager or that of the superior to whom the Manager may assign such officer or employer. Provided, that the Manager may delegate to any other department head, officer or employee the authority to hire or discharge any employees or officers so designated by the Manager. For all department heads, officers and employees, merit pay increases will be approved or denied by the City Manager.
SECTION II: If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.
SECTION III: The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after adoption.
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this __ day of ___, 2026.
________________________________
AUSTIN LUMBARD,
Mayor
ATTEST:
Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D _________________________
ERICA N. YASUDA,
City Clerk
APPROVED AS TO FORM:
_________________________
DAVID E. KENDIG
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1582
I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify: (1) that the full title of the above and foregoing Ordinance No. 1582 was included on the City Council’s published agendas for its meetings on the 1st day of September 2026, the day of 2026; (2) that a copy of the full ordinance was made available to the public online and in print at the meeting prior its passage; (3) that the whole number of the members of the City Council of the City of Tustin is five; and (4) that the ordinance was duly and regularly introduced at the regular meeting of the City Council held on the 1st day of September 2026 and was given its second reading, passed and adopted at a regular meeting of the City Council held on the day of 2026, by the following vote:
COUNCILMEMBER AYES: ___________________________________ COUNCILMEMBER NOES: ___________________________________ COUNCILMEMBER ABSTAINED: ___________________________________ COUNCILMEMBER ABSENT: ___________________________________ COUNCILMEMBER RECUSED: ___________________________________ __________________________
ERICA N. YASUDA,
City Clerk
Docusign Envelope ID: FAF7A76F-3381-832B-8227-611AD516A797 Docusign Envelope ID: CE755456-64B1-8993-82DD-230CFC1C9D9D