Tustin — 2025-12-02

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

2.\nCONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -\nInitiation 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.\nCONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION\npursuant to Government Code § 54956.9(a): (5 cases)\nA.\nNicole Aragon v. City of Tustin, et al., U.S.D.C.- C.D. Cal., Case No.\n8:25-cv-01741-HDV-JC.\nB.\nJoaquin Barraza v. City of Tustin, et al., U.S.D.C.- C.D. Cal., Case\nNo. 8:24-cv-02286-JWH-DFM\nC.\nEdwin Cruz v. City of Tustin, et al. U.S.D.C.- C.D. Cal., Case No.\n8:25-cv-01735-ADS\nD.\nKimberley Ann Davis v. Brian Baron, et al., OCSC Case No. 30-\n2025-01487435\nE.\nEmily Garcia-Areas v. City of Tustin, et al, U.S.D.C.- C.D. Cal., Case\nNo. 8:22-cv-00131 SPG

10.\nVACATION OF A PORTION OF AUTO CENTER DRIVE California Streets\nand Highways Code authorizes the City Council to vacate all or a portion\nof a street within the City when it is no longer necessary for current or\nprospective public street purposes, either on its own initiative or upon\nrequest of an interested party. A request was received from the owners of\nTustin Lexus and Tustin Cadillac to vacate a 12-foot wide strip of right-of-\nway around the perimeter of the Auto Center Drive cul-de-sac adjacent to\ntheir properties, reducing the curb radius to 40 feet. On November 4,\n2025, the City Council adopted Resolution No. 25-21 declaring its intent to\nvacate and set a public hearing for December 2, 2025. Additionally,\npursuant to the Surplus Land Act, the City Council must make findings\nand adopt a resolution declaring property to be conveyed as exempt\nsurplus land.\nRecommendation: It is recommended that the City Council take the\nfollowing actions: 1. Conduct the Public Hearing to vacate a portion of\nAuto Center Drive; and 2. Adopt Resolution No. 25-68 ordering the\nvacation of a portion of Auto Center Drive; and 3. Adopt Resolution No.\n25-69 declaring the portion of Auto Center Drive to be vacated as exempt\nsurplus land pursuant to California Government Code Section 54221(f)(1)\n(E) and the Final Updated Surplus Land Act Guidelines Section 103(c)(6);\nand 4. Authorize the City Manager to submit the appropriate\ndocumentation to the California Department of Housing and Community\nDevelopment in connection with Resolution No. 25-69; and 5. Authorize\nthe City Manager to take all actions and execute agreements necessary\nor appropriate to complete the vacation and transfer. RESOLUTION 25-68\nA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, ORDERING THE VACATION OF A PORTION OF AUTO\nCENTER DRIVE RESOLUTION NO. 25-69 A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING\nCERTAIN REAL PROPERTY COMPRISED OF PORTIONS OF AUTO\nCENTER DRIVE AS EXEMPT SURPLUS LAND PURSUANT TO\nCALIFORNIA GOVERNMENT CODE SECTION 54221(f)(1)(E) AND THE\nFINAL UPDATED SURPLUS LAND ACT GUIDELINES SECTION 103(c)\n(6) Fiscal Impact: The City obtained an appraisal determining the fair\nmarket value of Parcel A and Parcel B, depicted in Resolution No. 25-68,\nto be $14,000 and $30,000, respectively. If the proposed street vacation is\napproved, the adjacent property owners have agreed to pay fair market\nvalue at the above noted prices with proceeds deposited to the General\nFund.\nAGENDA REPORT

11.\nZONE CHANGE 2025-0001, VESTING TENTATIVE TRACT MAP\n19390/SUBDIVISION 2025-0001, DESIGN REVIEW 2025-0004, AND\nCONSIDERATION OF A FINAL ENVIRONMENTAL IMPACT REPORT\nFOR THE DEVELOPMENT OF 145 RESIDENTIAL UNITS AT THE\nSOUTHEAST CORNER OF 17TH STREET AND PROSPECT AVENUE\nThis item is consideration of the proposed Cypress Grove project, a 145-\nunit for-sale residential community on an 8.5-acre site, presently known as\nTustin Financial Plaza located at the intersection of 17th Street and\nProspect Avenue. Redevelopment of the site will require the demolition of\nfive existing commercial office buildings, a zone change to allow for\nresidential unit development, a tract map for subdivision of the\ncondominium units, design review, and associated environmental\nanalysis. On November 17, 2025, the Planning Commission unanimously\napproved Resolution Nos. 4535, 4536, and 4537, recommending City\nCouncil approval of Zone Change 2025-0001, Vesting Tentative Tract map\n19390/Subdivision\n2025-0001,\nDesign\nReview\n2025-0004,\nand\ncertification of the Final Environmental Impact Report.\nRecommendation: That the City Council: 1. Adopt City Council Resolution\nNo. 25-65, certifying the Final Environmental Impact Report and adopting\nthe Findings of Fact, Statement of Overriding Considerations, and\nMitigation Monitoring and Report Program for Zone Change 2025-0001,\nVesting Tentative Tract Map 19390/Subdivision 2025-0001, and Design\nReview 2025-0004. 2. Introduce and conduct first reading by title only of\nOrdinance No.1573 to approve Zone Change 2025-0001 to rezone the\nsite from Planned Community Business Park to Planned Community\nResidential and adopt a new development plan to establish permitted\nresidential uses and development standards for the construction of 145\nresidential condominiums on approximately 8.5 acres. 3. Adopt City\nCouncil Resolution No. 25-66 to approve: a. Vesting Tentative Tract Map\n19390/SUB 2025-0001 to subdivide the property to construct 145\nresidential condominiums on approximately 8.5 acres. b. Design Review\n2025-0004 for the design and site layout of 145 residential condominiums.\nRESOLUTION NO. 25-65 A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, CERTIFING THE FINAL\nENVIRONMENTAL IMPACT REPORT AND ADOPTING CEQA FINDINGS\nOF FACT, A STATEMENT OF OVERRIDING CONSIDERATIONS, AND\nMITIGATION MONITORING AND REPORTING PROGRAM FOR ZONE\nCHANGE 2025-0001, SUBDIVISION 2025-0001 / VESTING TENTATIVE\nTRACT MAP 19390, AND DESIGN REVIEW 2025-0004 ORDINANCE\nNO. 1573 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF\nTUSTIN, CALIFORNIA APPROVING ZONE CHANGE 2025-0001 TO\nAMEND THE CITY'S ZONING MAP TO APPLY THE PLANNED\nCOMMUNITY RESIDENTIAL ZONING DESIGNATION TO AN 8.5-ACRE\nSITE (ASSESSOR PARCEL NUMBERS (APNS) 401-401-12, -13, -14,\n-15, -16, AND -17) TO ACCOMMODATE THE CONSTRUCTION OF A\n145-UNIT RESIDENTIAL CONDOMINIUM PROJECT RESOLUTION NO.\n25-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF\nTUSTIN, CALIFORNIA APPROVING SUBDIVISION 2025-0001/VESTING\nTENTATIVE TRACT MAP 19390 AND DESIGN REVIEW 2025-0004\nAUTHORIZING THE CONSTRUCTION OF A 145-UNIT RESIDENTIAL\nCONDOMINIUM PROJECT AT AN 8.5-ACRE SITE (ASSESSOR\nPARCEL NUMBERS (APNS) 401-401-12, -13, -14, -15, -16, AND -17)\nFiscal Impact: There is no fiscal impact associated with this item however,\nthe applicant has provided a Fiscal Impact Analysis (Attachment M), that\nconsidered ongoing general fund revenues to the City from property tax\nand sales tax, showing an estimated net positive benefit of about\n$191,000 in the first year.\nAGENDA REPORT\nATTACHMENT A\nATTACHMENT B\nATTACHMENT C\nATTACHMENT D\nATTACHMENT E\nATTACHMENT F\nATTACHMENT G\nATTACHMENT H\nATTACHMENT I\nATTACHMENT J\nATTACHMENT K\nATTACHMENT L\nATTACHMENT M\nREGULAR BUSINESS\n12.\nMAYOR PRO TEM SELECTION The City Council selects a member of\nthe Council who will serve as Mayor Pro Tem for the following year.\nRecommendation: Pleasure of the City Council Fiscal Impact: There is no\nfiscal impact associated with this item.\nAGENDA REPORT\nOTHER BUSINESS/CITY MANAGER AND CITY ATTORNEY\nMAYOR, MAYOR PRO TEM AND COUNCIL MEMBER COMMENTS AND\nREPORTS

2.\nWAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS\nON THE AGENDA\nRecommendation: That the City Council waive reading in full of all\nordinances and resolutions on the agenda and declare that said titles\nwhich appear on the public agenda shall be determined to have been read\nby title and further reading waived.

3.\nAPPROVAL OF MINUTES - THE CLOSED SESSION MEETING AND

4.\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 $1,169,867.70 and Demands in the amount of\n$3,470,794.02.\nAGENDA REPORT

5.\nRENTAL AGREEMENT WITH KYA SERVICES, LLC Request for approval\nof a new Rental Agreement with KYA Services, LLC for the 84,000-\nsquare-foot, City-owned warehouse building located at 15171 Del Amo\nAvenue for the term of August 2026 through July 2031.\nRecommendation: It is recommended that the City Council authorize the\nCity Manager to execute the new Rental Agreement between the City and\nKYA Services, LLC subject to any non-substantive modifications as may\nbe deemed necessary and/or recommended by the City Attorney.Fiscal\nImpact: Pursuant to the new Rental Agreement, KYA Services, LLC will\npay the following annual rent amounts to the City to be deposited into the\nGeneral Fund: - August 2026-July 2027: $1,395,924 - August 2027-July\n2028: $1,521,552 - August 2028-July 2029: $1,597,632 - August 2029-\nJuly 2030: $1,677,516 - August 2030-July 2031: $1,761,396 City costs will\nbe limited to capital improvements such as parking lot maintenance or\nroof repairs (if needed) during the term of the Rental Agreement.\nAGENDA REPORT

6.\nMEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT The\nLocal Transportation Authority Ordinance No. 3 requires the City to adopt\nan annual expenditure report detailing Net Revenues, developer/traffic\nimpact fees, and City expenditures that meet the Maintenance of Effort\n(MOE) requirements. The Orange County Transportation Authority (OCTA)\nestablished the MOE benchmark with the original passage of Measure M.\nUnder the MOE requirement, the City must spend local funds on\ntransportation-related projects each fiscal year to remain eligible to\nreceive Measure M2 Fairshare funds. For Fiscal Year 2024-25, the City’s\nrequired MOE expenditure is $1,938,025.\nRecommendation: It is recommended that the City Council adopt\nResolution No. 25-73, adopting the Measure M2 Expenditure Report for\nFiscal Year 2024-2025 (attached), and direct staff to file the report with the\nOrange County Transportation Authority. RESOLUTION NO. 25-73 A\nRESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA CONCERNING THE MEASURE M2 (M2) EXPENDITURE\nREPORT FOR THE CITY OF TUSTIN, CALIFORNIA Fiscal Impact: There\nis no fiscal impact associated with this item.\nAGENDA REPORT

7.\nACCEPT IMPROVEMENTS AND FILE A NOTICE OF COMPLETION\nFOR THE EL CAMINO REAL WATER MAIN RELOCATION PROJECT\nConstruction of the El Camino Real Water Main Relocation 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. 25-72 accepting the improvement of the El Camino Real\nWater Main Relocation Project; and 2. Authorize the City Engineer to\nexecute and file the Notice of Completion with the Orange County\nRecorder's Office. RESOLUTION NO. 25-72 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 EL\nCAMINO REAL WATER MAIN RELOCATION PROJECT, (CIP NO.\n60178) Fiscal Impact: A total of $596,555.30 was appropriated in the\nFiscal Year 2025-2026 Capital Improvement Program Budget for this\nproject. The final construction cost for the El Camino Real Water Main\nRelocation Project is $557,049.32. This cost consists of the original\ncontract with Nelos Construction, Inc., in the amount of $ 393,399.10, a\nchange order for $96,555.30 for additional work requested by the partner\nagencies, and additional project change orders totaling $67,094.92\noutside the original scope of work. Agreement COT-56 between the City of\nTustin and the Orange County Transportation Authority authorizes the full\nreimbursement for final design and all construction costs, minus an\naccrued depreciation credit of $2,650.\nAGENDA REPORT

8.\nEXTENSION AND AMENDMENT OF EXCLUSIVE NEGOTIATING\nAGREEMENT WITH CD-CW (TUSTIN) LLC FOR A PORTION OF LAND\nAT TUSTIN LEGACY Request for approval of an extension of the\nExclusive Negotiating Agreement with CD-CW (Tustin) LLC to continue\nthe negotiating period for the disposition and development of a portion of\nDisposition Area 8B at Tustin Legacy for up to an additional 180 days.\nRecommendation: It is recommended that the City Council take the\nfollowing actions: 1. Approve an extension of the Exclusive Negotiating\nAgreement for an additional period of 120 days with a secondary 60-day\nextension subject to the approval of the City Manager in their sole\ndiscretion in accordance with Section 4.2 of the Exclusive Negotiating\nAgreement, as amended. 2. Authorize the City Manager to execute an\namendment to the Exclusive Negotiating Agreement reflecting the two\nextensions as requested by CD-CW (Tustin) LLC, establish a milestone\nschedule of performance for CD-CW (Tustin) LLC to adhere to, clarify\nExclusive Negotiating Agreement extension deposit amounts and that\nthey may be applied to the purchase price deposit but shall remain non-\nrefundable, and make any non-substantive additions or modifications as\nmay be deemed necessary and/or recommended by the City's special real\nestate counsel or the City Attorney prior to the end of the Exclusive\nNegotiating Agreement Negotiating Period. Fiscal Impact: The Exclusive\nNegotiating Agreement will be amended to require a $150,000 extension\ndeposit for the first 120-day extension and a $100,000 extension deposit\nfor the second 60-day extension. Pursuant to the Exclusive Negotiating\nAgreement, the City retains these deposits if the Disposition and\nDevelopment Agreement is not executed, or if the Disposition and\nDevelopment Agreement is executed but close of escrow does not occur.\nIf the Disposition and Development Agreement is executed and close of\nescrow occurs, the extension deposits (without interest accrued) are\napplicable to the purchase price and the purchase price deposit. CD-CW\n(Tustin) LLC also has a deposit account with the City that will continue to\nfund the City transaction expenses incurred by staff and third-party\nconsultants including the retention of legal counsel associated with the\nnegotiation and drafting of the transaction documents.\nAGENDA REPORT

9.\nAPPROVE AMENDMENT NO. 1 TO CONSULTANT SERVICES\nAGREEMENT WITH TY LIN INTERNATIONAL Staff is recommending that\nthe City Council approve Amendment No. 1 to the Consultant Services\nAgreement with TY Lin International to provide design modifications of the\nArmstrong Avenue Pedestrian Bridge Project (CIP No. 70257). The City\nwill be exploring design alternatives in effort to reduce construction costs.\nRecommendation: It is recommended that the City Council approve\nAmendment No. 1 to Consultant Services Agreement with TY Lin\nInternational to provide design modifications of the Armstrong Avenue\nPedestrian Bridge Project, in an amount not to exceed $320,000.00,\nwhich includes a 15% contingency, and authorize the City Manager to\nexecute the Agreement on behalf of the City.Fiscal Impact: The proposed\nAmendment No. 1 to Consultant Services Agreement with TY Lin\nInternational includes a not-to-exceed total compensation amount of\n$320,000.00, which includes a 15% contingency. Sufficient funds have\nbeen appropriated in the Fiscal Year 2025-2026 Capital Improvement\nProgram Budget.\nAGENDA REPORT\nPUBLIC HEARING ITEM