Tustin — 2026-01-20

1.\nCONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION -\nSignificant exposure to litigation pursuant to Government Code §\n54956.9(d)(2), (e)(2), (e)(3), (e)(5): (3 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

10.\n\nRESOLUTION ADOPTING THE CITYWIDE COMPREHENSIVE FEE SCHEDULE AND COST ALLOCATION PLAN\n\nThe City’s last Comprehensive User Fee Study was adopted in 2021, and user fees have been adjusted annually based on changes in the Consumer Price Index (CPI). However, the City has not formally adopted a Cost Allocation Plan, which restricts its ability to fully recover costs for specific services. Industry best practices recommend a comprehensive review of service costs and fees every three to five years.\n\nThe City recently completed a new Comprehensive User Fee Study and Cost Allocation Plan (collectively “Studies”) to determine the current costs of providing specific services and ensure that user fees and charges do not exceed these costs. The Mayor-appointed User Fee Ad Hoc Committee, composed of Councilmembers Ryan Gallagher and Lee Fink, reviewed the Studies’ results and, after consulting with a hired consultant and City staff, recommended that the City Council hold a public hearing to consider adopting the Proposed 2026 Comprehensive User Fee Schedule, which incorporates the Studies’ findings. If approved, the new user fees will take effect on April 1, 2026.\n\nRecommendation: 1. Conduct a public hearing on the proposed adoption of the 2026 Comprehensive Fee Schedule and Cost Allocation Plan.\n2. Adopt Resolution No. 26-05, Establishing and Adopting New\nDevelopment Processing Fees and Other City Rates, Charges, and User Fees for Various Government Services. RESOLUTION NO. 26-05 A\n\nThe City Council of the City of Tustin, California, hereby resolves to establish and adopt new development processing fees and other city rates, charges, and user fees for various government services.\n\nThe proposed 2026 Comprehensive User Fee Schedule is estimated to generate approximately $370,000 in additional revenue, primarily for the General Fund.

2.\nAPPROVAL OF MINUTES - THE SPECIAL MEETING AND THE

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 $1,155,713.36, $1,208,751.60, and 1,634,582.63\nand Demands in the amount of $4,184,843.73.\nAGENDA REPORT

4.\nPUBLIC ART COMMISSION APPOINTMENT City Council approval is\nrequired for the Mayor’s Public Art Commission appointment.\nRecommendation: Approve the Mayor’s appointment of Kristi Martin to the\nPublic Art Commission.Fiscal Impact: There is no fiscal impact associated\nwith this item.\nAGENDA REPORT

5.\n2026 LEGISLATIVE UPDATE Recap of 2025 Legislative activities by the\nCity’s advocacy consultant Townsend Public Affairs, consideration of the\n2026 Legislative Platform, and updates on legislative activity at the state\nand federal level.\nRecommendation: Recommend City Council take the following actions: 1.\nAdopt the 2026 Legislative Platform; and 2. Receive and file the legislative\nupdate prepared by Townsend Public Affairs. Fiscal Impact: There is no\nfiscal impact associated with this item.\nAGENDA REPORT

6.\nRECOMMENDATION TO SELECT DEVELOPER FOR THE 11 ACRE\nCOMPETITIVE OFFERING WITHIN THE PACIFIC CENTER EAST\nSPECIFIC PLAN Recommendation to select developer Lincoln Property\nCompany to negotiate for the disposition and development of Planning\nArea 10 of the Pacific Center East Specific Plan. The recommendation is\nmade by a staff supported, Mayor appointed Ad Hoc Committee\ncomposed of Councilmember Ryan Gallagher and Mayor Pro Tem Ray\nSchnell.\nRecommendation: It is recommended that the City Council authorize staff\nand the City’s broker Jones Lang LaSalle to negotiate an Exclusive\nNegotiation Agreement with Lincoln Property Company for future City\nCouncil consideration for the disposition and development of Planning\nArea 10 of the Pacific Center East Specific Plan.Fiscal Impact: There is no\nfiscal impact associated with this item.\nAGENDA REPORT

7. APPROVE plans, specifications, and authorize advertisements for bids for the annual pavement maintenance and sidewalk repair project.\nspecifications for the Annual Pavement Maintenance and Sidewalk Repair\nProject – Zone 7 have been prepared, and the project is now ready for\nbid.\nRecommendation: It is recommended that the City Council adopt\nResolution No. 26-02 approving the plans and specifications for the\nAnnual Pavement Maintenance and Sidewalk Repair Project – Zone 7,\nand authorize the City Clerk to advertise to receive bids. RESOLUTION\nNO. 26-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF\nTUSTIN, CALIFORNIA, APPROVING PLANS AND SPECIFICATIONS\nFOR THE ANNUAL ROADWAY REHABILITATION AND SIDEWALK\nREPAIR PROJECT – ZONE 7, CIP NO. 70025, AND AUTHORIZING\nADVERTISEMENT FOR BIDS Fiscal Impact: The Fiscal Year 2025–26\nCapital Improvement Program Budget includes $700,000 in Senate Bill 1\nfunds for the design and preliminary work of the annual pavement\nprogram. The Fiscal Year 2026–27 CIP Budget earmarks $1,000,000 in\nSenate Bill 1 funds for project construction. As part of the upcoming Mid-\nYear Budget process, staff will be requesting the City Council appropriate\nan additional $169,000 in grant funding which the City successfully\nreceived from the CalRecycle’s Rubberized Pavement Grant Program for\nthis project, bringing the current project budget to $1,869,000. The\nengineer’s construction estimate is $1,900,000. After reviewing the bids\nreceived, staff will return to the City Council with a recommendation to\naward the construction contract and, if necessary, request additional funds\nfrom Measure M2 and the Gas Tax.\nAGENDA REPORT

8.\n\nAPPROVE ADMINISTERING AGENCY-STATE MASTER AGREEMENT FOR FEDERALLY FUNDED TRANSPORTATION PROJECTS\n\nAdopting Resolution No. 26-03 will approve Master Agreement No. 12-5271F15 between the City of Tustin and the State of California. This agreement is a prerequisite for obtaining federal funding for eligible City transportation projects. In conjunction with the Master Agreement, adopting Resolution No. 26-04 will authorize the Director of Public Works or City Engineer to execute various documents required by the California Department of Transportation. These documents are necessary for processing and obtaining federal and/or state funds for eligible projects.\n\nRecommendation: The City Council is recommended to adopt Resolution No. 26-03, which approves Administering Agency-State Master Agreement No. 12-5271F15 for Federal-Aid Projects. Additionally, the Council should adopt Resolution No. 26-04, which authorizes the Director of Public Works or City Engineer to sign the required documents. These documents are essential for processing and obtaining federal and/or state funding for eligible transportation projects.\nImprovement projects. RESOLUTION NO. 26-03, a resolution of the City Council of the City of Tustin, California, approves the administering agency-state master agreement (MASA) number 12-5271F15 for federal-aid projects. RESOLUTION NO. 26-04, another resolution of the City Council of the City of Tustin, California, authorizes the Director of Public Works and City Engineer to sign various documents required by the California Department of Transportation (Caltrans) for federal and/or state-funded transportation improvement projects. There is no direct fiscal impact associated with the recommended actions. Adoption of Resolution No. 26-03 and Resolution No. 26-04 are required administrative actions that will enable the City to receive reimbursement and future allocations of federal transportation funds for eligible projects.

9.\nASSEMBLY BILL 2561 COMPLIANCE Pursuant to Government Code\nsection 3502.3, public agencies are required to present the status of their\nvacancies and recruitment and retention efforts in a public hearing at least\nonce per fiscal year. This presentation ensures compliance with the law.\nRecommendation: Receive and file.Fiscal Impact: There is no fiscal\nimpact associated with this item.\nAGENDA REPORT