Tustin — 2023-12-05

1. CONFERENCE WITH LEGAL COUNSEL -\nANTICIPATED LITIGATION - Significant exposure\nto litigation pursuant to Government Code §\n54956.9(d)(2): (3 cases)

2. CONFERENCE WITH LEGAL COUNSEL -\nANTICIPATED LITIGATION - Initiation of litigation\npursuant to Government Code § 54956.9(d)(4): (1\ncase)

3. CONFERENCE WITH LEGAL COUNSEL -\nANTICIPATED LITIGATION - Initiation of litigation\npursuant to Government Code § 54956.9(d)(4): (1\ncase) - enforcement, specific performance and/or\nforeclosure for default on affordable housing\ncovenants.

4. CONFERENCE WITH LEGAL COUNSEL -\nANTICIPATED LITIGATION - Significant exposure\nto litigation pursuant to Government Code §\n54956.9(d)(2): (1 case) - related to the fire at the\nNorth Hangar owned by the Navy and the potential\nrelease of hazardous materials therefrom

5. PUBLIC EMPLOYMENT - Cal. Gov’t Code §\n54957(b)(1). Title: City Manager

10. 2024 MAYORAL APPOINTMENTS TO\nCOMMITTEES Annually the Mayor appoints those\nmembers of the City Council who will serve on\nvarious City and Regional committees.\nRecommendation: That the City Council: 1. Confirm\nthe attached appointments as recommended by the\nMayor; and 2. Adopt FPPC Form 806: Agency\nReport of Public Official Appointments and direct\nstaff to post on the City's website.\nAgenda Report

11. PART-TIME NON-BENEFITTED EMPLOYEES\nCOMPENSATION AND BENEFITS Adoption of the\nattached Resolution will authorize modified terms\nand conditions of employment for unrepresented\nPart-Time Non-Benefitted employees as required by\nState law.\nRecommendation: Adopt Resolution No. 23-61 to\nupdate the Part-Time Non-Benefitted Employees\nSalary Resolution. RESOLUTION NO. 23-61 A\nRESOLUTION OF THE CITY COUNCIL OF THE\nCITY OF TUSTIN RELATING TO COMPENSATION\nFOR UNREPRESENTED PART-TIME NON-\nBENEFITTED EMPLOYEES AND SUPERSEDING\nRESOLUTION 22-53\nAgenda Report

13. AUTHORIZING THE COMMENCEMENT OF\nPROCEEDINGS IN CONNECTION WITH THE\nPROPOSED ISSUANCE OF A PRIVATE\nPLACEMENT FINANCING TO FUND CERTAIN\nCAPITAL IMPROVEMENT PROJECTS OF THE\nTUSTIN WATER ENTERPRISE, CONFIRMING\nTHE APPOINTMENT OF PROFESSIONAL\nSERVICES AND AUTHORIZING CERTAIN OTHER\nACTIONS IN CONNECTION THEREWITH As part\nof the Tustin Water Enterprise’s (Enterprise) annual\nreview and its 2023 cost-of-service analysis, the\nCity’s consultants advised that the Enterprise needs\nadditional resources to meet its ongoing\ninfrastructure improvement obligations for the next\nthree years. Staff has determined that the issuance\nof a private placement financing can provide the\nnecessary capital funding. Staff is requesting the\nCity Council’s approval to authorize the initiation of\nproceedings to issue private placement financing of\n$4 million plus issuance costs to fund certain\nimprovement projects that are outlined in the\nEnterprise’s five-year capital plan.\nRecommendation: It is recommended that: The City\nCouncil adopt Resolution 23-60 entitled: Resolution\nAuthorizing The Commencement Of Proceedings In\nConnection With The Proposed Issuance Of A\nPrivate Placement Financing To Fund Certain\nCapital Improvement Projects Of The Tustin Water\nEnterprise, Confirming The Appointment Of\nProfessional Services And Authorizing Certain Other\nActions In Connection Therewith. RESOLUTION\nNO. 23-60 A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, AUTHORIZING THE\nCOMMENCEMENT OF PROCEEDINGS IN\nCONNECTION WITH THE PROPOSED ISSUANCE\nOF A PRIVATE PLACEMENT FINANCING TO\nFUND CERTAIN CAPITAL IMPROVEMENT\nPROJECTS OF THE TUSTIN WATER\nENTERPRISE, CONFIRMING THE APPOINTMENT\nOF PROFESSIONAL SERVICES AND\nAUTHORIZING CERTAIN OTHER ACTIONS IN\nCONNECTION THEREWITH\nAgenda Report\nPUBLIC HEARING ITEM 14

14. ADOPTION OF RETAIL WATER RATES - PUBLIC\nHEARING RESOLUTION 23-59 The City’s\nconsultant, IB Consulting, completed a draft Cost-of-\nService Rate Study (Study) for the City’s Water\nEnterprise (Enterprise) and developed proposed\nwater rates to meet ongoing operational,\nmaintenance, and capital needs while maintaining\nthe requirements of existing bond covenants. City\nstaff requests that the City Council hold a Public\nHearing to consider the adoption of proposed water\nrates. A notice of the proposed water rate\nadjustment was prepared in accordance with\nProposition 218 and mailed directly to 14,852\ncustomers and property owners on October 20,\n2023. As of the published date of this report, the\nCity has received twenty-two written protest to the\nproposed water rates.\nRecommendation: Staff recommends that the City\nCouncil: 1. Conduct a Public Hearing to receive\ntestimony on the proposed water rates for Fiscal\nYear 2023-2024 through Fiscal Year 2027-2028;\nand 2. Adopt Resolution No. 23-59 approving the\nproposed water rates for the Fiscal Year 2023-2024\nthrough the Fiscal Year 2027-2028 with effective\ndates of January 1, 2024; January 1, 2025; January\n1, 2026; January 1, 2027; and January 1, 2028.\nRESOLUTION NO. 23-59 A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, ADJUSTING WATER RATES\nPROVIDED BY THE CITY OF TUSTIN\nAgenda Report\nREGULAR BUSINESS ITEMS 15-16

15. DOWNTOWN COMMERCIAL CORE AND RED\nHILL AVENUE SPECIFIC PLAN REASESSMENT\nREPORT As directed by the City Council during the\nCity’s Midpoint Strategic Plan Update in 2021, an\nanalysis of the Downtown Commercial Core Specific\nPlan (DCCSP) and the Red Hill Avenue Specific\nPlan (RHASP) was initiated in 2022 to identify\npotential plan revisions that align development\nregulations with the real estate market. The City\ncontracted with Economic Planning Systems (EPS),\nInc. to assess the DCCSP and RHASP ("Plan\nAreas") and provide a summary of findings and\npolicy options. EPS presented their initial report to\nthe Mayor’s Economic Development Ad-Hoc\nCommittee, comprised of Mayor Austin Lumbard\nand Councilmember Ryan Gallagher. The following\nrecommendations are presented to the City Council\non behalf of the Mayor’s Economic Development\nAd-Hoc Committee.\nRecommendation: That the City Council: 1. Receive\nand file the Downtown Commercial Core and Red\nHill Avenue Specific Plan Reassessment report\nprepared by Economic Planning Systems, Inc.; 2.\nDirect staff to prepare resolutions for applicable\npolicy options identified in the Ad-Hoc Committee's\nrecommendation list, and agendize those for the\nCity Council consideration on or before February 20,\n2024; 3. Direct staff to prepare an agenda report\nfurther describing and outlining the scope of\namendments to the Specific Plans and/or Tustin City\nCode for applicable policy options identified in the\nAd-Hoc recommendation list, on or before March\n19, 2024; and, 4. Direct staff to prepare an agenda\nreport further describing and outlining the strategy\ninitiatives identified in the Ad-Hoc recommendation\nlist, on or before April 16, 2024.\nAgenda Report

3. RATIFICATION OF PAYROLL AND DEMANDS The\nCity Council has approved the use of Government\nCode Section 37208 to expedite the payment of City\nof Tustin obligations that are in accordance with the\napproved budget or continued operations\nauthorizations.\nRecommendation: It is recommended that the City\nCouncil approve Payroll in the amount of\n$1,009,312.48 and Demands in the amount of\n$1,857,489.03.\nAgenda Report

4. FIRST AMENDMENT TO THE CONTRACTOR\nSERVICES AGREEMENT – TEMPORARY\nSHELTER, INC Request for authorization to enter\ninto a First Amendment to the Contractor Services\nAgreement (“CSA”) with Temporary Shelter, Inc., to\nextend the operations of the Tustin Temporary\nEmergency Shelter (“TTES”) from July 1, 2024\nthrough June 30, 2026 and approve a fund\nappropriation for separate consulting services to\nevaluate long term- shelter options.\nRecommendation: The Tustin Housing Authority\nCommissioners take the following action: * Approve\nthe 1st Amendment to the Contractor Services\nAgreement between Temporary Shelter, Inc. and the\nCity of Tustin and Tustin Housing Authority. The City\nCouncil take the following actions: * Authorize the\nActing City Manager and Acting Housing Authority\nExecutive Director to execute the First Amendment\nto the Contractor Services Agreement with\nTemporary Shelter, Inc. to extend operations of the\nTustin Temporary Emergency Shelter, subject to any\nnon-substantive modifications as may be deemed\nnecessary and/or recommended by the City\nAttorney; and * Appropriate $100,000 from the\nGeneral Fund for City Attorney and consultants as\nneeded to assist in the evaluation, analysis, and\ndevelopment of long-term shelter options.\nAgenda Report

5. MEASURE M2 FAIRSHARE ANNUAL\nEXPENDITURE REPORT The Local Transportation\nAuthority Ordinance No. 3 requires the City to adopt\nan annual Expenditure Report to account for the Net\nRevenues, developer/traffic impact fees, and funds\nexpended by the City, which satisfy the\nMaintenance of Effort (MOE). The Orange County\nTransportation Authority (OCTA) established the\nMOE benchmark in conjunction with passage of the\noriginal Measure M. MOE is a requirement that the\nCity expend local funds on transportation related\nprojects each fiscal year in order to be eligible to\nreceive Measure M2 Fairshare funds; the City’s\nrequired MOE expenditure for Fiscal Year 2022-23\nis $1,697,045.\nRecommendation: It is recommended that the City\nCouncil adopt Resolution No. 23-62, adopting the\nMeasure M2 Expenditure Report for Fiscal Year\n2022-2023 (attached), and direct staff to file the\nreport with the Orange County Transportation\nAuthority. RESOLUTION NO. 23-62 A\nRESOLUTION OF THE CITY COUNCIL OF THE\nCITY OF TUSTIN, CALIFORNIA, CONCERNING\nTHE MEASURE M2 (M2) EXPENDITURE REPORT\nFOR THE CITY OF TUSTIN, CALIFORNIA\nAgenda Report

6. FISCAL YEAR 2022-2023 DEVELOPMENT\nIMPACT FEE REPORT (AB 1600) The attached\nreport is prepared to comply with California\nGovernment Code Section 66006, which requires\nan annual disclosure and review of collected\ndevelopment impact fees and expenditures within\n180 days after the last day of the fiscal year.\nRecommendation: Receive and file.\nAgenda Report

7. APPROVE PLANS AND SPECIFICATIONS AND\nAUTHORIZE ADVERTISEMENT FOR BIDS FOR\nTHE CENTENNIAL PARK IMPROVEMENT\nPROJECT CIP NO. 20090 The plans and\nspecifications for the Centennial Park Improvement\nProject (CIP No. 20090) have been substantially\ncompleted pending final approval by the City\nEngineer.\nRecommendation: It is recommended that the City\nCouncil: 1. Adopt Resolution No. 23-58 approving\nthe plans and specifications for the Centennial Park\nImprovement Project (CIP No. 20090); and 2.\nAuthorize the City Clerk to advertise to receive bids;\nsubject to the final approval by the City Engineer.\nRESOLUTION NO. 23-58 A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA APPROVING PLANS AND\nSPECIFICATIONS FOR THE CENTENNIAL PARK\nIMPROVEMENT PROJECT CIP NO. 20090 AND\nAUTHORIZING ADVERTISEMENT FOR BIDS\nAgenda Report

8. SECOND READING AND ADOPTION OF\nORDINANCE NO. 1539 (DEVELOPMENT\nAGREEMENT 2023-0001 BETWEEN THE CITY OF\nTUSTIN AND OUTFRONT MEDIA, LLC. - 1021\nEDINGER AVENUE) Adoption of Ordinance No.\n1539 approves Development Agreement 2023-0001\nbetween the City of Tustin and Outfront Media, LLC.\nin association with Conditional Use Permit 2023-\n0008 for a freeway adjacent digital display billboard\nat the city-owned property located at 1021 Edinger\nAvenue. At the last meeting, Councilmember\nSchnell asked about the ability of the digital\nbillboard to transmit an emergency message\nimmediately upon notice. While the actual process\nand timing on displaying emergency messages is\nstill being developed, Outfront Media is committed\nto working with the City on displaying emergency\nmessages as soon as possible.\nRecommendation: That the City Council have\nsecond reading by title only and adoption of\nOrdinance No. 1539. ORDINANCE NO. 1539 AN\nORDINANCE OF THE CITY COUNCIL OF THE\nCITY OF TUSTIN, APPROVING DEVELOPMENT\nAGREEMENT 2023-0001 BETWEEN THE CITY OF\nTUSTIN AND OUTFRONT MEDIA, LLC. IN\nASSOCIATION WITH CONDITIONAL USE PERMIT\n2023-0008 FOR A FREEWAY ADJACENT DIGITAL\nDISPLAY BILLBOARD AT THE CITYOWNED\nPROPERTY LOCATED AT 1021 EDINGER\nAVENUE\nAgenda Report

9. OVERVIEW OF LAND USE OPTIONS FOR\nHOUSING ELEMENT REZONING PROGRAM The\nCity’s adopted Housing Element currently identifies\na Rezoning Program that establishes eighteen (18)\nhousing element sites zoned for mixed-use\ndevelopment. These eighteen (18) sites\naccommodate the City’s obligation under the\nRegional Housing Needs Allocation (RHNA). This\nreport addresses how City staff intends to propose\nto comply with the Housing Element Law’s\nrestrictions on rezoning sites that include mixed-use\nzoning. This report clarifies that City staff proposes\nto designate a few of the housing inventory sites for\n“residential use only” development in accordance\nwith the Housing Element, such that non-residential\nuses would be prohibited on those sites. By doing\nso the remaining housing inventory sites will\nmaintain the land use flexibility currently allowed by\nthe City Code. The sites to be designated for\nresidential uses only include a portion of land at The\nMarket Place shopping center that is currently used\nfor parking and a portion of Neighborhood D North\nwithin the Tustin Legacy Specific Plan (TLSP).\nRecommendation: That the City Council receive and\nfile this staff report.\nAgenda Report