Tustin — 2025-06-17

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

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

3.\nCONFERENCE 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.\nLIABILITY CLAIM - [Government Code § 54956.95] Claimant: The Center\nfor Toxicology and Environmental Health, L.L.C Agency claimed against:\nCity of Tustin

5.\nPUBLIC EMPLOYEE ANNUAL PERFORMANCE\n[Government Code § 54957(b)(1)] Title: City Manager\nEVALUATION\n-

10.\nAWARD CONSTRUCTION CONTRACT FOR THE EL CAMINO REAL\nWATER MAIN RELOCATION PROJECT Staff is requesting the City\nCouncil\naward\na\nconstruction\ncontract\nto\nthe\nlowest\nresponsive/responsible bidder for the El Camino Real Water Main\nRelocation Project.\nRecommendation: It is recommended that the City Council: 1. Award a\nconstruction contract to the lowest responsive/responsible bidder, G&A\nNelos Construction, Inc. in the amount of $393,399.10 for the El Camino\nReal Water Main Relocation Project and authorize the Mayor and the City\nClerk to execute the contract documents on behalf of the City; and 2.\nAuthorize the remaining project budgeted appropriation in excess of ten\npercent (10%) above the contract amount as additional contingency.\nAgenda Report

11.\nAPPROVE AMENDMENT TO ATTACHMENT AGREEMENT WITH THE\nSOUTHERN CALIFORNIA GAS COMPANY The Southern California Gas\nCompany has been deploying advanced metering technology throughout\ntheir service area. On February 7, 2023, the City Council approved an\nAttachment Agreement which allowed installation of one metering device\non a City-owned street light pole. The Southern California Gas Company\nis requesting four additional locations be included in the agreement.\nRecommendation: It is recommended that the City Council approve the\namendment to the Attachment Agreement with the Southern California\nGas Company.\nAgenda Report

12.\nAPPROVE THE ANNUAL OC GO (MEASURE M2) ELIGIBILITY\nSUBMITTAL PACKAGE, FISCAL YEAR 2025-2026 To maintain eligibility\nto receive OC Go (also known as Orange County Measure M2 Program)\nfunding, the City is required to annually submit a compliance package to\nthe Orange County Transportation Authority.\nRecommendation: It is recommended that the City Council take the\nfollowing actions: 1. Adopt the attached Measure M2 Seven-Year Capital\nImprovement Program (Fiscal Year 2025-2026 through Fiscal Year 20312032, Attachment "B" of the M2 Eligibility Package); and 2. Approve\nResolution No. 25-47 informing the Orange County Transportation\nAuthority that the City updated a Pavement Management Plan that is in\nconformance with their format; and 3. Approve Resolution No. 25-48\ninforming the Orange County Transportation Authority that there have\nbeen no changes to the City's Circulation Element of the General Plan\nand that it is consistent with the Master Plan of Arterial Highways and that\nthe City concurs with the Mitigation Fee Program for new development;\nand 4. Authorize the Director of Public Works to submit the City of Tustin's\nMeasure M2 eligibility package to the Orange County Transportation\nAuthority. RESOLUTION NO. 25-47 A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, CONCERNING THE\nSTATUS AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR\nTHE MEASURE M2 (M2) PROGRAM RESOLUTION NO. 25-48 A\nRESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, CONCERNING THE STATUS AND UPDATE OF THE\nCIRCULATION ELEMENT, AND MITIGATION FEE PROGRAM FOR THE\nMEASURE M (M2) PROGRAM\nAgenda Report

13.\nRESOLUTION DETERMINING THE NEED TO CONTINUE THE\nPROCLAIMED LOCAL EMERGENCY RELATED TO THE NAVY NORTH\nHANGAR At its meeting on November 10, 2023, the City Council ratified\nthe Acting City Manager’s Proclamation of Local Emergency related to the\nfire at the Navy’s North Hangar and release of chemicals of public health\nconcern, including asbestos. At a special meeting of the City Council on\nJanuary 9, 2024, and at its regular meetings on March 5, 2024, April 16.\n2024, June 4, 2024, June 18, 2024, July 16, 2024, August 20, 2024,\nOctober 15, 2024, December 3, 2024, January 21, 2025, March 18, 2025,\nand May 6, 2025, the City Council reviewed and determined the need to\ncontinue the local emergency. This item recommends that the City Council\nonce again review and determine that the need exists to continue the local\nemergency, as required by State law.\nRecommendation: It is recommended that the City Council adopt\nResolution 25-52 determining the need exists to continue the local\nemergency related to the fire and release of chemicals of public health\nconcern from the Navy's North Hangar, in the form attached hereto as\nAttachment 2. RESOLUTION 25-52 A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING THE\nNEED TO CONTINUE LOCAL EMERGENCY RELATED TO FIRE AND\nRELEASE OF HAZARDOUS MATERIALS FROM NAVY NORTH\nHANGAR\nAgenda Report

14.\nCOMMUNITY FACILITIES DISTRICT 2018-01 ZONE 3 Request for\napproval of the implementing documents and resolution related to the\nannexation of property subject to a Disposition and Development\nAgreement between the City and Tustin Legacy Acquisition LLC (Irvine\nCompany) into Community Facilities District 2018-01 and designating the\nproperty as Zone 3.\nRecommendation: It is recommended that the City Council take the\nfollowing actions: 1. Receive and file the unanimous approval of\nannexation into Community Facilities District 2018-01 Zone 3 and related\nmatters signed by the City Manager on behalf of the City of Tustin as the\nproperty owner; and 2. Adopt Resolution 25-40: A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING\nINTENTION TO ANNEX TERRITORY TO THE CITY OF TUSTIN\nCOMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES),\nAPPROVING A BOUNDARY MAP OF THE ANNEXATION PROPERTY\nAND DIRECTING THE CITY CLERK TO RECORD THE BOUNDARY\nMAP, THE NOTICE OF THE SPECIAL TAX LIEN FOR COMMUNITY\nFACILITIES DISTRICT NO. 2018-01 ZONE 3, AND THE NOTICE OF\nCESSATION OF SPECIAL TAX LIEN FOR COMMUNITY FACILITIES\nDISTRICT NO. 2013-01\nAgenda Report

15.\nPROJECT FUNDING FOR ASSEMBLY BILL 2766 (MOTOR VEHICLE\nREGISTRATION SUBVENTION) FUNDING PROGRAM The City Council\nauthorizes the use of the City’s disbursement of Assembly Bill 2766 funds\nto offset costs for vehicle emission reduction programs implemented by\nthe City of Tustin. This year, the City Council is requested to allocate the\nprojected Assembly Bill 2766 disbursements for Fiscal Years 2024-2025\nand 2025-2026 to fund the Main Street Capital Improvement Project.\nRecommendation: That the City Council authorize the use of the City’s\nprojected Assembly Bill 2766 disbursements for Fiscal Years 2024-25 and\n2025-26 to fund the Main Street Capital Improvement Project by minute\norder. Fiscal Impact: Since 1991, Assembly Bill 2766 funds have been\nmade available to local governments for use in offsetting State mandated\nvehicle emissions reduction programs. The use of these funds reduces\nGeneral Fund responsibility to fund State mandated emission reduction\nprograms. Funds are disbursed to cities on a quarterly basis. In addition to\n$121,895.86 in available funds from prior funding periods, a total of\n$78,541.15 has been disbursed in the 2024-25 Fiscal Year, with an\nestimated final disbursement of $25,000 by June 30, 2025. Approximately\n$100,000 is expected to be disbursed for the 2025-26 Fiscal Year, for a\ntotal of approximately $325,437.01 being available by the end of 2026.\nAgenda Report

16.\nANNUAL REPORT ON THE TUSTIN POLICE DEPARTMENT’S USE OF\nMILITARY EQUIPMENT PER CALIFORNIA ASSEMBLY BILL 481\nAssembly Bill (AB) 481 requires the Tustin Police Department\n("Department") to seek City Council approval by ordinance for the funding,\nacquisition, and use of equipment defined by the law as "military\nequipment." This legislation also requires law enforcement agencies to\nsubmit to the City Council an annual report outlining a summary of the use\nof the equipment and the purpose for its use, any complaints or concerns\nreceived concerning the military equipment, results of any internal audits\nor violations and any actions taken in response, the total annual costs for\nthe equipment, the quantity possessed by the agency, and the intention to\npurchase additional equipment in the following year. In addition, within 30\ndays of submitting and publicly releasing the annual report, a wellpublicized and community engagement meeting must be held to allow for\npublic comments. This report outlines staff’s work in complying with the\nlaw and request for continued utilization of the Department’s military\nequipment and approval of the Department’s military equipment policy\nunder Tustin Police Department Policy 706 - Military Equipment Policy\n(formerly identified as Tustin Police Department General Order No. 708).\nRecommendation: 1. To receive and file the annual report on the\nDepartment's use of military equipment for calendar year 2024\n(Attachment 1); 2. To receive and file the proposed version of Tustin\nPolice Department Policy 706 -Military Equipment Policy (Attachment 2);\n3. To direct the Tustin Police Department to post Tustin Police Department\nPolicy 706 (Attachment 2) on the Department's website; 4. To direct the\nTustin Police Department to hold a well-publicized and conveniently\nlocated meeting to give the public an opportunity to discuss the annual\nmilitary equipment report; and 5. To direct staff to set the matter for a\npublic hearing regarding an ordinance to approve Tustin Police\nDepartment Policy 706 which is at least 30 days from today's date.\nAgenda Report\nPUBLIC HEARING ITEMS 17-18

17.\nADOPTION OF A RESOLUTION UPDATING THE COMPREHENSIVE\nFEE SCHEDULE A Comprehensive User Fee Study determines the cost\nof providing governmental services and ensures that user fees and\ncharges do not exceed the costs of providing these services. Per City\nCouncil Resolution No. 21-54, the City’s Finance Director is to annually\nreview and recommend to the City Council adjustments to fees set forth in\nthe Comprehensive Fee Schedule in accordance with the Consumer Price\nIndex (CPI). If approved by the City Council, fee adjustments will take\neffect on September 1, 2025.\nRecommendation: 1. Conduct a public hearing on the proposed adoption\nof an update to the City's Comprehensive Fee Schedule; and, 2. Adopt\nResolution No. 25-50, Establishing and Adopting Updated Development\nProcessing Fees and Other City Rates, Charges, and User Fees for\nVarious Government Services. RESOLUTION NO. 25-50 A RESOLUTION\nOF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,\nESTABLISHING AND ADOPTING\nUPDATED\nDEVELOPMENT\nPROCESSING FEES AND OTHER CITY RATES, CHARGES, AND\nUSER FEES FOR VARIOUS GOVERNMENT SERVICES\nAgenda Report

18.\nAUTHORIZATION TO PARTICIPATE IN THE CALIFORNIA MUNICIPAL\nFINANCE AUTHORITY’S BOND OPPORTUNITIES FOR LAND\nDEVELOPMENT PROGRAM FOR COMMUNITY FACILITIES DISTRICT\nFORMATION A request that the City Council authorize participation in the\nCalifornia Municipal Finance Authority’s Community Facility District Bond\nOpportunities for Land Development program, which enables land\ndevelopers to finance public improvements and/or pay development\nimpact fees from the issuance of tax-exempt bonds.\nRecommendation: Staff recommends that the City Council: 1. Adopt\nResolution 25-44, authorizing participation in the California Municipal\nFinance Authority's (CMFA) Bond Opportunities for Land Development\n(BOLD) program, which allows the California Municipal Finance Authority\nto accept applications, conduct proceedings, and levy special taxes within\nthe City of Tustin, pursuant to the Mello-Roos Community Facilities Act of\n1982. 2. Authorize the City Manager and/or Finance Director, or their\ndesignee(s), to negotiate, execute, and deliver acquisition,\nreimbursement, or joint community facilities agreements required in\nconnection with any BOLD Community Facilities District formed pursuant\nto Resolution 25-44. RESOLUTION NO. 25-44 RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,\nAUTHORIZING USE OF THE BOND OPPORTUNITIES FOR LAND\nDEVELOPMENT PROGRAM AND AUTHORIZING THE CALIFORNIA\nMUNICIPAL FINANCE AUTHORITY TO ACCEPT APPLICATIONS FROM\nPROPERTY OWNERS, CONDUCT PROCEEDINGS AND LEVY\nSPECIAL TAXES WITHIN THE CITY OF TUSTIN PURSUANT TO THE\nMELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED;\nAND AUTHORIZING RELATED ACTIONS\nAgenda Report\nOTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY\nMAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND\nREPORTS

3.\nRATIFICATION 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 $1,043,731.65 and Demands in the amount of\n$1,510,596.02.\nAgenda Report

4.\nSECOND READING AND ADOPTION OF ORDINANCE NO. 1566 - AN\nORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 2024-0004 COMPASS AT RED HILL BY MERITAGE HOMES, INC. - A 73 UNIT\nCONDOMINIUM PROJECT Adoption of Ordinance No. 1566 approves\nDevelopment Agreement 2024-0004 for a residential development project\nthat would include 73 condominium units, four of which will be set aside\nas affordable units on approximately 3.4 acres site located at 13751 and\n13841 Red Hill Avenue.\nRecommendation: That the City Council have second reading by title only\nand adoption of Ordinance No. 1566. ORDINANCE NO. 1566 A\nORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, APPROVING DEVELOPMENT AGREEMENT (DA) 20240004 BETWEEN THE CITY OF TUSTIN, CALIFORNIA, AND MERITAGE\nHOMES OF CALIFORNIA, INC. TO ACCEPT THE VOLUNTARY\nPROVISION OF COMMUNITY PUBLIC BENEFITS, BY INCLUDING\nFOUR AFFORDABLE HOUSING UNITS FOR VERY-LOW INCOME\nHOUSEHOLDS, A PUBLIC AMENITY SPACE INCLUDING PUBLIC ART\nAND GATEWAY SIGNAGE AT THE CORNER OF RED HILL AVENUE\nAND SAN JUAN, ON-STREET PUBLIC PARKING BAYS ALONG RED\nHILL AVENUE, A NEW TRAFFIC SIGNAL, AND ASSOCIATED OFF-SITE\nIMPROVEMENTS FOR A NEW RESIDENTIAL CONDOMINIUM\nDEVELOPMENT PROJECT THAT WOULD INCLUDE 73 RESIDENTIAL\nCONDOMINIUM UNITS, INCLUDING FOUR (4) AFFORDABLE UNITS,\nON APPROXIMATELY 3.39 ACRES AT 13751 AND 13841 RED HILL\nAVENUE\nAgenda Report

5.\nSECOND READING AND ADOPTION OF ORDINANCE NO. 1568 DESIGNATING THE STATE FIRE MARSHAL’S 2025 LOCAL\nRESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONES AS\nREQUIRED BY CALIFORNIA LAW Adoption of Ordinance No. 1568\ndesignates the State Fire Marshal’s 2025 local responsibility area fire\nhazard severity zones as required by California law.\nRecommendation: That the City Council have second reading by title only\nand adoption of Ordinance No. 1568. ORDINANCE NO. 1568 AN\nORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN\nDESIGNATING THE STATE FIRE MARSHAL'S 2025 LOCAL\nRESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONES AS\nREQUIRED BY CALIFORNIA LAW\nAgenda Report

6.\nBUILDING BOARD OF APPEALS APPOINTMENTS City Council approval\nis required for the Mayor’s appointment of two Building Board of Appeals\nmembers.\nRecommendation: That the City Council approve the following\nappointments by the Mayor: Douglas Armstrong (first four-year term) and\nCristian Arranaga (first four-year term).\nAgenda Report

7.\nADOPT RESOLUTION NO. 25-46 APPROVING FISCAL YEAR 20252026 SENATE BILL 1 PROJECT LIST TO BE SUBMITTED TO THE\nCALIFORNIA TRANSPORTATION COMMISSION To be eligible to receive\nnew funding under Senate Bill 1, the City is required to submit a Project\nList to the California Transportation Commission no later than July 1,\n2025.\nRecommendation: 1. Adopt Resolution No. 25-46 identifying projects to be\nsubmitted to the California Transportation Commission for Senate Bill 1\nfunding; and 2. Direct staff to submit the Project List to the California\nTransportation Commission on behalf of the City. RESOLUTION NO. 2546 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR\n2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND\nACCOUNTABILITY ACT OF 2017\nAgenda Report

8.\nSET PUBLIC HEARING FOR WATER QUALITY REPORT ON PUBLIC\nHEALTH GOALS 2022-2024 The California Health and Safety Code\nrequires that water systems with more than 10,000 service connections\nprepare a report every three years and conduct a public hearing to\nprovide information to consumers on levels of contaminants in the City’s\ndrinking water.\nRecommendation: It is recommended that the City Council set a public\nhearing for August 5, 2025, at 6:00 p.m. to receive and respond to public\ncomments on the 2025 Public Health Goals Report.\nAgenda Report

9.\nACCEPT IMPROVEMENTS AND FILE A NOTICE OF COMPLETION\nFOR THE BENETA WELL NO. 2 - PHASE II EQUIPPING PROJECT\nConstruction of the Beneta Well No. 2 - Phase II Equipping Project has\nbeen completed to the satisfaction of the City Engineer and is now ready\nfor City Council acceptance.\nRecommendation: It is recommended that the City Council: 1. Adopt\nResolution No. 25-49 accepting the improvement of the Beneta Well No. 2\n- Phase II Equipping Project; and 2. Authorize the City Engineer to\nexecute and file the Notice of Completion with the Orange County\nRecorder's Office. RESOLUTION NO. 25-49 A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACCEPTING\nTHE PUBLIC WORKS AND IMPROVEMENT AND AUTHORIZING THE\nRECORDATION OF THE NOTICE OF COMPLETION FOR THE BENETA\nWELL NO. 2 - PHASE II EQUIPPING PROJECT, (CIP NO. 60151)\nAgenda Report