Tustin — 2026-04-21

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): (1 case)

2.\nCONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION -\nInitiation of litigation pursuant to Government Code § 54956.9(d)(4): (1\ncase)

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 REAL PROPERTY NEGOTIATORS - [Government\nCode § 54956.8] (1 case)\nA.\nProperty Address/Description: APN 430-251-23 Agency: City of\nTustin City Negotiators: Aldo E. Schindler, City Manager; Nicole\nBernard, Assistant City Manager; Brian Moncrief, Deputy City\nManager/Real Property; Ryan Swiontek, Deputy Director of Real\nProperty Negotiating Parties: Lincoln Property Company Under\nNegotiation: Price and Terms of Payment

2.\nAPPROVAL OF MINUTES -THE SPECIAL CLOSED SESSION MEETING

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 $1,138,859.73 and Demands in the amount of\n$3,914,794.08.

4.\n2026 CITYWIDE RECORDS RETENTION SCHEDULE AMENDMENT\nStaff is proposing the adoption of a revised Records Retention Schedule.\nRecommendation: Recommend the City Council adopt Resolution No. 26-\n18 (Attachment 1), amending the City's Records Retention Schedule.\nRESOLUTION NO. 26-18 A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, ADOPTING AN AMENDED\nRECORDS\nRETENTION\nSCHEDULE,\nAUTHORIZING\nTHE\nDESTRUCTION OF CERTAIN CITY RECORDS, AND RESCINDING\nPREVIOUS RESOLUTION NO. 25-32 Fiscal Impact: There is no fiscal\nimpact associated with this item.

5.\nREINSTATEMENT AND AMENDMENT OF EXCLUSIVE NEGOTIATING\nAGREEMENT WITH CD-CW (TUSTIN) LLC FOR A PORTION OF LAND\nAT TUSTIN LEGACY Request for approval to reinstate, amend and\nextend the Exclusive Negotiating Agreement with CD-CW (Tustin) LLC to\ncontinue the negotiating period for the disposition and development of a\nportion of Disposition Area 8B at Tustin Legacy in order to facilitate a\nclose of escrow of the property by the end of this year.  The extension\nwould provide an initial 60-day period for CD-CW (Tustin) LLC to secure\nan equity partner for the project with an executed Letter of Intent.  Further\nextensions of the Exclusive Negotiating Agreement through October 2026\nwould be permitted, as needed, for CD-CW (Tustin) LLC to achieve\nmilestones consisting of entitlement approvals, completion of DDA\nnegotiations and execution, and completion of construction plans for\npermit review submittal.\nRecommendation: Recommended that the City Council take the following\naction: 1. Authorize the City Manager to execute a reinstatement and\namendment to the Exclusive Negotiating Agreement reflecting the\nextensions as requested by CD-CW (Tustin) LLC, establish a milestone\nschedule of performance for CD-CW (Tustin) LLC to adhere to, and make\nany non-substantive additions or modifications as may be deemed\nnecessary and/or recommended by the City's special real estate counsel\nor the City Attorney. Fiscal Impact: The Exclusive Negotiating Agreement\nwill be amended to require a $300,000 extension deposit for the first 60-\nday extension and a $100,000 monthly extension deposit for the\nremainder of the ENA Negotiating Period. The extension deposits are\nnon-refundable, however, if the Disposition and Development Agreement\nis executed and close of escrow occurs, the extension deposits (without\ninterest accrued) are applicable to the purchase price and the purchase\nprice deposit. CD-CW (Tustin) LLC also has a deposit account with the\nCity that will continue to fund the City transaction expenses incurred by\nstaff and third-party consultants including the retention of legal counsel\nassociated with the negotiation and drafting of the transaction documents.

6.\n2025 YEAR IN REVIEW – COMMUNITY DEVELOPMENT The 2025 Year\nin Review summarizes the Community Development Department’s\nprograms and activities conducted from January 2025 through December\n2025.\nRecommendation: Recommend the City Council receive and file the\nreport. Fiscal Impact: There is no fiscal impact associated with this item.

7.\nAWARD CONSTRUCTION CONTRACT FOR THE HEIDEMAN SCHOOL\nPARK PROJECT Staff is requesting the City Council award a construction\ncontract to the lowest responsive/responsible bidder for the Heideman\nSchool Park Project. Construction is anticipated to begin June 2026, with\ncompletion estimated in Summer 2027.\nRecommendation: Recommended the City Council: 1. Award a\nconstruction contract to the lowest responsive/responsible bidder,\nHorizons Construction Company Int'l Inc. in the amount of $6,324,767.70\nfor the Heideman School Park Project and authorize the Mayor and the\nCity Clerk to execute the contract documents on behalf of the City; and 2.\nAppropriate $2,583,196 from Park Development Fund (Fund 131). Fiscal\nImpact: The adopted Fiscal Year 2025-2026 Capital Improvement\nProgram budget includes funding in the amount of $5,042,804 from\nProposition 68 Statewide Parks Program Grant for the Heideman School\nPark project. Of this grant amount, $200,000 has been spent on pre-\nconstruction activities and the remaining $4,842,804 is available for the\nconstruction phase. The total construction cost as outlined below is\n$7,426,000. The requested appropriation of $2,583,196 is required to fully\nfund the Heideman School Park Project, the Park Development Fund\n(Fund 131) has sufficient funds to support the above appropriation\nrequest.\nConstruction\nexpenses\ninclude:\nConstruction\nContract...............................................................$6,324,767.70\nContingency\n(10%)......................................................................$633,232.30\nConstruction\nSupport...................................................................$468,000.00\nTotal\nBudget.............................................................................$7,426,000.00

8.\nCOMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN\nFOR PROGRAM YEAR 2026–2027 The Housing and Community\nDevelopment Act of 1974 established the Community Development Block\nGrant program to provide federal funding to local communities for viable\nurban development, including decent housing, suitable living\nenvironments, and expanded economic opportunities for low- and\nmoderate-income persons. Every five years, the City of Tustin prepares a\nfive-year Consolidated Plan identifying local needs related to affordable\nhousing, supportive services, community development, and economic\nopportunity.\nThe attached Annual Action Plan implements the\nConsolidated Plan’s goals and objectives for the 2026-27 program year\nand acts as the City’s application for Community Development Block\nGrant funding.\nRecommendation: Recommend the City Council adopt Resolution No. 26-\n14: Approving the program year 2026–27 Annual Action Plan and funding\nallocations totaling $772,043 in Community Development Block Grant\nfunds; and Authorizing the Community Development Director to submit the\nAnnual Action Plan to the federal Department of Housing and Urban\nDevelopment and make minor modifications to the Action Plan including\nexecuting documents, certifications, contracts, or other items as may be\nrequired to carry out the Community Development Block Grant program.\nRESOLUTION NO. 26-14 A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN, CALIFORNIA, APPROVING THE ANNUAL\nACTION PLAN FOR PROGRAM\nYEAR 2026-27 COMMUNITY\nDEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR SUBMISSION\nTO THE U.S. DEPARTMENT OF HOUSING AND URBAN\nDEVELOPMENT Fiscal Impact: The proposed 2026–27 Annual Action\nPlan programs and expenditures will be funded through the Community\nDevelopment Block Grant. The City anticipates a Program Year 2026–27\nallocation of $772,043. No General Fund impact is anticipated.

9.\nCONDUIT FINANCING FOR USA TUSTIN LEGACY 5 & 6 APARTMENTS\nPROJECT Conduct a public hearing under the Tax and Equity Fiscal\nResponsibility Act ("TEFRA") on April 21, 2026 in connection with the\nproposed issuance of revenue bonds by the California Municipal Finance\nAuthority (the "CMFA"), a joint exercise of powers authority and public\nentity of the State of California, in an amount not to exceed $80,000,000,\n(the "Bonds"), to finance and refinance the acquisition, construction,\ndevelopment and equipping of a 334-unit (including four manager’s units)\nmultifamily rental housing project located on an approximately 5.46-acre\nsite generally bounded by Warner Avenue to the north, Compass Avenue\nto the west, Legacy Road to the east and Airship Avenue to the south (the\n"Project") in the City of Tustin.\nRecommendation: Recommend the City Council: 1. CONDUCT A PUBLIC\nHEARING UNDER THE REQUIREMENTS OF TEFRA AND THE\nINTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE");\nand 2. ADOPT RESOLUTION 26-19, A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF TUSTIN APPROVING A PLAN OF FINANCE\nINCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE\nCALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE\nOUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000\nTO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL\nPROJECT FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN\nAFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO\nRESOLUTION NO. 26-19 RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF TUSTIN APPROVING A PLAN OF FINANCE INCLUDING\nTHE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA\nMUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING\nPRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND\nREFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE\nBENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN\nOTHER MATTERS RELATING THERETO Fiscal Impact: The Bonds to be\nissued by the CMFA for the Project will be the sole responsibility of the\nborrower, Tustin 738, L.P., and the City will have no financial and legal\nobligations, liability or responsibility for the Project or the repayment of the\nBonds for the financing of the Project. All financing documents with\nrespect to the issuance of the Bonds will contain clear disclaimers that the\nBonds are not obligations of the City of Tustin, the County of Orange, or\nthe State of California but are to be paid for solely from funds provided by\nthe Borrower. The Board of Directors of the California Foundation for\nStronger Communities, a California nonprofit public benefit corporation\n(the "Foundation"), acts as the Board of Directors for the CMFA. Through\nits conduit issuance activities, the CMFA shares a portion of the issuance\nfees it receives with its member communities and donates a portion of\nthese issuance fees to the Foundation for the support of local charities.\nWith respect to the City of Tustin, it is expected that a portion of the\nissuance fee attributable to the City will be granted by the CMFA to the\ngeneral fund of the City. Such grant may be used for any lawful purpose of\nthe City. The Borrower will be the beneficiary of the CMFA's charitable\ndonation through a 25% reduction in issuance fees.