Tustin — 2025-02-04

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -\nSignificant exposure to litigation pursuant to Government Code §\n54956.9(d)(2): (2 cases)

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -\nInitiation of litigation pursuant to Government Code § 54956.9(d)(4): (2\ncases)

3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION –\nSignificant exposure to litigation pursuant to Government Code §\n54956.9(d)(2): (1 case) – related to the fire at the North Hangar owned by\nthe Navy and the release of hazardous materials therefrom

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - [Government\nCode § 54957(b)(1)] Title: City Manager

5. LABOR NEGOTIATIONS - [Government Code § 54957.6]: Agency\nNegotiators: Derick Yasuda, Director of Human Resources and Peter\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nBrown, Liebert Cassidy Whitmore Employee Organization: Tustin Police\nOfficers Association (TPOA) Employee Organization: Tustin Police\nManagement Association (TPMA)

10. DEVELOPMENT AGREEMENT 2024-0007, AMENDING DEVELOPMENT\nAGREEMENT 2020-0001 REGARDING TERMS AND PUBLIC BENEFIT\nThe applicant, the Tustin Auto Center Merchants Association, is\nrequesting approval of Development Agreement (DA) 2024-0007 to\namend the term and sponsorship contributions previously established in\nDA 2020-0001. The proposed amendment will extend the term of the\nagreement and establish a methodology for calculating the annual\nsponsorship contribution. The Planning Commission held a public hearing\non December 10, 2024, and adopted Resolution No. 4511, recommending\nthat the City Council adopt Ordinance No. 1560 to approve DA 2024-\n0007. Property Owner and Applicant: John Patterson, Tustin Auto Center\nMerchants Association C/O Powerstone Property Management, 9060\nIrvine Center Drive Irvine, CA 92618 Location: Assessor Parcel No. 500-\n181-08 (Rear of 40 & 44 Auto Center Dr.; No Street Address) General\nPlan: Planned Community Commercial Business Zoning: Planned\nCommunity Commercial\nRecommendation: That the City Council: 1. Conduct first reading by title\nonly for Ordinance No. 1560, approving DA 2024-0007 to amend the term\nand sponsorship contribution previously established by DA 2020-0001,\nand, 2. Set the second reading for the next available Council meeting.\nORDINANCE NO. 1560 AN ORDINANCE OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT\nAGREEMENT 2024-0007 AMENDING THE TERM AND SPONSORSHIP\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nCONTRIBUTION PREVIOUSLY ESTABLISHED BY DEVELOPMENT\nAGREEMENT 2020-0001 BETWEEN THE CITY OF TUSTIN AND\nTUSTIN AUTO CENTER MERCHANTS ASSOCIATION FOR A\nFREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT THE TUSTIN\nAUTO CENTER Fiscal Impact: The proposed amendment would have a\npositive fiscal impact, as it includes an escalated financial contribution\nfrom the Tustin Auto Center Merchants Association based on the average\nannual growth rate of car sales tax, providing proportional increases to the\nCity's public benefit funding for Parks and Recreation events and\nprogramming.

11. CODE AMENDMENT 2024-0005 (ORDINANCE NO. 1556) TO IMPROVE\nTHE EFFICIENCY AND CLARITY OF THE CITY’S ENTITLEMENT\nPROCESSES RELATED TO ALCOHOL PERMITS, SOIL REMEDIATION,\nMURALS AND GRAPHICS, AND TEXT ERRORS The proposed Code\nAmendment 2024-0005 (Ordinance No. 1556) is a City-initiated update to\nSection 9299 of Part 9 (Administration) of Chapter 2 (Zoning) of Article 9\n(Land Use) of the Tustin City Code. The amendments, part of the ongoing\n"Streamline Tustin" program, aim to enhance the efficiency, clarity, and\nmodernity of the Zoning Code in alignment with the City’s Strategic Plan.\nProposed updates include: 1. Alcoholic Beverage Sales Establishments:\nStreamlining the Conditional Use Permit (CUP) process by allowing\napproval without a public hearing if no objections are received within 10\ndays of public notice. 2. Soil Remediation: Removing the requirement for\nZoning Administrator approval, given oversight by State and county\nagencies. 3. Murals and Graphics: Clarifying language to accommodate\nnew technologies and media for murals. 4. General Updates: Eliminating\nduplicate text and correcting typographical errors for improved clarity. On\nOctober 8, 2024, the Planning Commission reviewed and recommended\nCity Council approval of proposed Code Amendment 2024-0005.\nRecommendation: That the City Council: 1. Conduct the first reading, by\ntitle only, of Ordinance No. 1556. 2. Schedule the ordinance for a second\nreading and adoption at the next regular City Council meeting.\nORDINANCE NO. 1556 AN ORDINANCE OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 9299 OF\nPART 9 (ADMINISTRATION) OF CHAPTER 2 (ZONING) OF ARTICLE 9\n(LAND USE) OF THE TUSTIN CITY CODE, CODE AMENDMENT (CA)\n2024-0005 TO IMPLEMENT THE STREAMLINE TUSTIN PROGRAM.\nFiscal Impact: The proposed amendments are anticipated to have a\nneutral to positive fiscal impact on the City's General Fund. Cost Savings:\nStreamlining the CUP process for alcoholic beverage sales\nestablishments will reduce administrative costs by minimizing staff time\nspent preparing reports and conducting public hearings for uncontested\napplications. Revenue Neutrality: The removal of soil remediation CUP\nrequirements is not expected to significantly impact revenue, as the City\nhistorically receives few applications for such projects. Other permitting\nagencies, such as the California Department of Toxic Substances Control,\nretain primary jurisdiction over these activities. Operational Efficiency:\nImprovements to the clarity and organization of the Zoning Code will\nenhance staff efficiency, allowing resources to be allocated more\neffectively without requiring additional funding. Overall, the amendments\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nsupport operational efficiency and reduce unnecessary regulatory costs\nwithout negatively affecting the City's revenue streams.

12. DEVELOPMENT AGREEMENT 2024-0003, VESTING TENTATIVE\nTRACT MAP 19353, DESIGN REVIEW 2024-0013 AND DENSITY\nBONUS REQUEST The Irvine Company is requesting approval of\nDevelopment Agreement (DA) 2024-0003, Vesting Tentative Tract Map\n19353 (SUB 2024-0004), Design Review (DR) 2024-0013 and a Density\nBonus request related to the development of a total of 1,336 apartment\nunits, which includes 334 affordable units within Neighborhood D South of\nthe Tustin Legacy Specific Plan. The Planning Commission held a public\nhearing on January 14, 2025, and adopted Resolutions No. 4514 and\n4515, finding the location, purpose, and extent of the proposed disposition\nof real property is consistent with the General Plan and Tustin Legacy\nSpecific Plan, and recommending that the City Council adopt Resolution\nNo. 25-07 to approve DR 2024-0013, SUB 2024-0004, and a Density\nBonus request and related deviations, and adopt Ordinance No. 1561 to\napprove DA 2024-0003. Applicant: Irvine Company Attn: Kevin Roberts,\n550 Newport Center Drive, Newport Beach CA 92660 Location: Lots 11,\n12 And 13 Of Tract 18197; Generally Bounded By Warner Avenue To The\nNorth, Legacy Avenue To The East, Compass Avenue To The West And\nTustin Ranch Road To The South, Within Planning Area 13 And 14 Of\nNeighborhood D, Tustin Legacy Specific Plan. General Plan: Tustin\nLegacy Specific Plan Zoning: Tustin Legacy Specific Plan\nRecommendation: That the City Council: 1. Adopt Resolution No. 25-07\napproving Design Review (DR) 2024-0013, Vesting Tentative Tract Map\n(VTTM) 19353 and a Density Bonus request. 2. Conduct first reading by\ntitle only for Ordinance No. 1561, approving Development Agreement\n(DA) 2024-0003 to facilitate the development and conveyance of a 19.4-\nacre project site and set the second reading at a future Council meeting.\nRESOLUTION NO. 25-07 A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, APPROVING SUB 2024-\n0004/VESTING TENTATIVE TRACT MAP 19353, DESIGN REVIEW\n2024-0013, AND A REQUEST FOR DENSITY BONUS, FOR THE\nDEVELOPMENT OF 1,336 APARTMENT HOMES ON LOTS 11, 12, AND\n13 OF TRACT 18197 WITHIN PLANNING AREA 13 and 14\n(NEIGHBORHOOD D) OF THE TUSTIN LEGACY SPECIFIC PLAN.\nORDINANCE NO. 1561 AN ORDINANCE OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, APPROVING DEVELOPMENT\nAGREEMENT 2024-0003 BETWEEN THE CITY OF TUSTIN AND IRVINE\nCOMPANY FOR THE DEVELOPMENT OF A 19.4-ACRE SITE WITHIN\nTUSTIN LEGACY WITH 1,336 APARTMENT HOMES INCLUDING 334\nAFFORDABLE UNITS Fiscal Impact: The applicant has paid the required\napplication fees for the proposed project. The fiscal impact resulting from\nthe sale of the property, and other actions related to the sale, will be\naddressed within the City Council's consideration of the project's\nDisposition and Development Agreement (DDA), which is not a part of this\nrequest.

3. RATIFICATION OF PAYROLL AND DEMANDS The City Council has\napproved the use of Government Code Section 37208 to expedite the\npayment of City of Tustin obligations that are in accordance with the\napproved budget or continued operations authorizations.\nRecommendation: It is recommended that the City Council approve\nPayroll in the amount of $1,105,278.27 and Demands in the amount of\n$9,480,805.06.\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm

4. ORDER PREPARATION OF THE ENGINEER’S REPORT FOR THE\nTUSTIN LANDSCAPE AND LIGHTING DISTRICT The Tustin Landscape\nand Lighting District provides funding for the maintenance of perimeter\nlandscaping on the arterial streets and for the operation and maintenance\nof street lighting on public roads within the Tustin Ranch area. Resolution\nNo. 25-08 orders the preparation of the Engineer’s Report for the Tustin\nLandscape and Lighting District for Fiscal Year 2025-2026.\nRecommendation: It is recommended that the City Council adopt\nResolution No. 25-08 ordering the preparation of the Engineer’s Report for\nthe Tustin Landscape and Lighting Reassessment District 2025 Levy of\nAnnual Assessments for Fiscal Year 2025-2026. RESOLUTION NO. 25-\n08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA ORDERING THE PREPARATION OF THE ENGINEER’S\nREPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT\nLEVY OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2025-2026\nFiscal Impact: Sufficient funds are budgeted and appropriated in the\nTustin Landscape and Lighting District Fund to cover this work.\nAdditionally, the costs for operating and maintaining the District are offset\nthrough the levy of the annual assessments for the District.

5. APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE\nADVERTISEMENT FOR BIDS FOR THE ANNUAL ROADWAY REPAIR\nPROJECT The plans and specifications for the Annual Roadway\nRehabilitation and Sidewalk Repair Project for Zone 6, Capital\nImprovement Project No. 70024, have been prepared and the project is\nnow ready for bid.\nRecommendation: It is recommended that the City Council adopt\nResolution No. 25-09 approving the plans and specifications for the\nAnnual Roadway Rehabilitation and Sidewalk Repair Project ~ Zone 6,\n(CIP No. 70024) and authorize the City Clerk to advertise to receive bids.\nRESOLUTION NO. 25-09 A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA APPROVING PLANS AND\nSPECIFICATIONS FOR THE ANNUAL ROADWAY REHABILITATION\nAND SIDEWALK REPAIR PROJECT - ZONE 6, CIP NO. 70024 AND\nAUTHORIZING ADVERTISEMENT FOR BIDS Fiscal Impact: The\nengineer’s estimate for CIP No. 70024 is $2,900,000 in total project costs.\nIncluded within the project are improvements to Myford Road, a split\njurisdictional roadway between the City of Tustin and the City of Irvine. It\nis anticipated the City of Irvine, through reimbursement agreement, will\ncontribute $500,000 in fair share cost for these improvements along\nMyford Road. Final Irvine contributions will be determined upon project\ncompletion. The Fiscal Year 2024-25 budget has $415,000 allocated from\nMeasure M2 Fair Share (Fund 139), which funds the annual design, traffic\nstriping, alley repairs, and bridge deck maintenance. The FY 2025-26\nbudget requested $2,000,000 between Gas Tax Fund (Fund 130) and\nFund 139 in construction funding. As bid results are received and verified,\nstaff will bring back a recommendation for the award and if necessary\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nappropriate additional funding from Measure M2 and Gas Tax funds to\ncomplete the proposed CIP No. 70024.

6. APPROVE CONSULTANT SERVICES AGREEMENT FOR\nCONSTRUCTION MANAGEMENT SERVICES TUSTIN LEGACY\nPROJECTS Staff is recommending the City Council approve a Consultant\nServices Agreement with Z & K Consultants to provide necessary\nconstruction management services for the upcoming construction of the\nLegacy Park Improvements, Neighborhood D South - Phase 2 Package 2\nImprovements, and Armstrong Pedestrian Bridge projects. The agreement\nwill also enable the City to move forward with pre-construction activities\nincluding a final constructability review prior to the upcoming bid process\nfor each project.\nRecommendation: It is recommended that the City Council: 1. Approve the\nConsultant Services Agreement (CSA) with Z & K Consultants for\nConstruction Management Services and authorize the City Manager to\nexecute the Agreement on behalf of the City, subject to approval as to\nform by the City Attorney. 2. Authorize the City Manager to approve\nchange orders up to ten percent of the negotiated cost to address\nunforeseen conditions. Fiscal Impact: Sufficient funds have been\nappropriated in the Fiscal Year 2024-2025 Capital Improvement Program\nBudget. The purposed Consultant Services Agreement with Z & K\nConsultants includes a not to exceed total compensation amount of\n$1,575,250.00, unless the agreement is amended by the City Manager in\naccordance with Recommendation 2 above.

7. SECOND READING AND ADOPTION OF ORDINANCE NO. 1557 -\nZONE CHANGE 2024-0002, REMNANT PARCEL AT TUSTIN RANCH\nROAD AND INTERSTATE 5 FREEWAY Adoption of Ordinance No. 1557\napproves the zone change to assign a Planned Community Industrial\nzoning designation to an unclassified remnant parcel. This zone change is\nnecessary to facilitate a lot consolidation with the adjacent industrial\nproperty at 2441 Michelle Drive.\nRecommendation: That the City Council have second reading by title only\nand adoption of Ordinance No. 1557. ORDINANCE NO. 1557 AN\nORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, APPROVING ZONE CHANGE 2024-0002,\nESTABLISHING A PLANNED COMMUNITY INDUSTRIAL ZONING\nDESIGNATION AND SUBJECT TO THE IRVINE INDUSTRIAL COMPLEX\nPLANNED COMMUNITY DISTRICT REGULATIONS FOR A 2.14-ACRE\nVACANT PARCEL (ASSESSOR PARCEL NUMBER (APN) 432-391-59)\nFiscal Impact: There is no fiscal impact associated with this item.

8. QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND\nTHE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY\nREDEVELOPMENT AGENCY FOR THE QUARTER ENDED\n1/31/25, 3:17 PM Regular Meeting of the City Council/Closed Session-4:30 pm/Regular Meeting-6:00 pm\nDECEMBER 31, 2024 Government Code Section 53646 requires that the\nTreasurer make an Investment Report to the City Council at least\nquarterly showing balances by authorized investment and certifying its\ncompliance with the adopted Investment Policy.\nRecommendation: Receive and file.Fiscal Impact: There is no fiscal\nimpact associated with this item.

9. RESOLUTION ESTABLISHING A POLICY REQUIRING CITY COUNCIL\nCONSIDERATION AND APPROVAL OF FUTURE COMPETITIVE\nOFFERINGS FOR THE DISPOSITION OF CITY-OWNED REAL\nPROPERTY Resolution 25-10 will establish a policy requiring City Council\nconsideration and approval of future competitive offerings for the\ndisposition of City-owned real property.\nRecommendation: It is recommended that the City Council take the\nfollowing action: 1. Adopt Resolution 25-10: A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OFTUSTIN, CALIFORNIA,\nESTABLISHING A POLICY REQUIRING CITY COUNCIL\nCONSIDERATION AND APPROVAL OF FUTURE COMPETITIVE\nOFFERINGS FORTHE DISPOSITION OF CITY-OWNED REAL\nPROPERTY. Fiscal Impact: There is no fiscal impact associated with this\nitem.