City Council - Successor Agency - Housing Authority - Regular Meeting

Opportunity compassion safety and hope for a generation to come we work all the things we do gratitude and humility I Pray in the name of Jesus everyone say Amen Chaplain thank you very much.

We're blessed to have you sir At this time. I'll call on councilmember Charles to please lead us in the Pledge of Allegiance. I

Thank You councilmember

Any expert aid communications to report? I've met with all the bargaining units. Anybody else? Very good. We'll go to our presentation. I'm going to call on the good folks at Grant Thornton. But before we begin, I just want to make sure that we outline both to the council, the public, and our staff. This is the first time any one of us are hearing this presentation, correct?

Correct.

And none of us have had an advance on any of this that we're hearing right now. We're getting it all in real time, just like the members of our public, right? Correct. Very good. All right. Please continue.

I'd like to, Mr. Mayor, just expand on that a little bit and just do just a little bit of introduction. IN THE FIRST MEETING IN MARCH I PRESENTED TO THE COUNCIL THE REALITY THAT OUR GENERAL FUND RESERVES WERE SIGNIFICANTLY LOWER THAN WE HAD PREVIOUSLY BELIEVED. OVER $10 MILLION DIFFERENCE. THIS ALSO FOLLOWED THE COMPLETION OF OUR ANNUAL AUDIT AND THE PRESENTATION OF THE ACFER WHICH ALSO IDENTIFIED A $2.9 MILLION ACCOUNTING ERROR. SO DURING THAT DISCUSSION WE I was directed by council to look further into these matters. And we did retain Grant Thornton to do an independent audit of this situation. And that is the presentation you'll see in a few minutes. other than producing information that was requested by the auditors staff has had no input into the presentation of this material or their conclusions or their recommendations so this is their independent work so I just wanted to say that all right thank you go ahead

Thank you Mr. Mayor and thank you members of the City Council. My name is Anne Lane. I'm a director at Grant Thornton and this is our readout to the City Council regarding the engagement we have that we have labeled Task 1. This presentation supplements a written report that will also be provided that does get a little more in the weeds with some of the mostly accounting descriptions. So that will be received as well. If we want to go to the next page please. So as the city manager mentioned, we were engaged to analyze specific accounting transactions and budget items. And this included assessing whether transactions were conducted at arm's length, that they were aligned with generally accepted accounting principles, they followed city policies, and supported a legitimate and reasonable city purpose. We were not retained to do an investigation. We were not retain to do a fraud examination or anything along those lines we looked at 2 specific areas related to the city's finance one was a 2.9 million dollar prior period adjustment that was tied to some accounting errors and depletion of a 10 million dollar 10 million dollars in unassigned fund balance. We could go to the next slide, please. So key takeaways. And what I'm going to do is summarize these items here, and then we're going to get into a lot more detail on these items in the subsequent slides. So first of all, the $2.9 million adjustment reflects accounting errors and how a transaction was recorded in the books and records of the city. There's no underlying issues that we were able to see with the transaction or its purposes. There was a $10 million decline in unassigned fund balance that was primarily driven by a planned budget deficit, along with transfers, accounting adjustments, and changes in fund balance classifications. Based on the work that we did, we did not find any indicators of fraud or intentional misconduct. And all of the issues that we identified relate to financial policy, accounting presentation, accounting errors, and governance over the finance process. So the primary issues we identified relate to a lack of clear governance structure over finance, clear reconciliations, knowledge related to how transactions should be recorded, and presentation of the financial information, which has limited the city council's ability to understand the city's financial position. We're going to start with the $2.9 million accounting adjustment. So the $2.9 million was related to a property. and how that property was recorded on the books and records of the city. The property was purchased in 2004 and was purchased by the Fullerton Redevelopment Agency. As I'm sure people here are aware, in I believe it was 2012, the state of California dissolved all the redevelopment agencies and created what is known as a successor agency, which is a fund of the city. Again, as I know council is aware, as it has been presented in financial information and budget that's presented to the city, the city's government financial statements are comprised of multiple funds, one of which is the general fund. The general fund captures the activity of all of the operations of the city. There's additional funds that are also part of the overall financial picture of the city. Some of these are utilities like water. Some of them relate to capital projects. Some of them relate to roads. One of those funds is the successor agency. So when this redevelopment agency was dissolved, the successor agency became a fund under the city's financial statements, which means the city was responsible for the financial reporting for the successor agency. The same property was later sold in 2022. It was sold in what appears to be an arm's length transaction. It was presented to council. The sale was approved by council in a unanimous vote. Based on that, we don't have any issue with the purchase or the sale of the property itself. Where we run into issues is how some of that was treated in the books and records of the city. So if we can go to the next slide. In 2020, while the city was undergoing an audit, the auditors questioned the Administrative Services Department regarding this property that was included in the successor agency fund as assets held for resale. They asked if there was a plan to dispose of the property, so to eventually sell it. Administrative services reached out to other city employees inquiring about what the status of the property was at that time as you can see in the email on my right, so Don't know if it's everybody else's left or how you're looking at it gets a little confusing up here But on my right red box around the text the communication was that the property was supposed to be titled to the city and that was supposed to happen prior to somebody leaving and Administrative services took that as that property should be recorded in the general fund instead of the successor agency fund and That transfer was recorded at the end of 2020 if we can go to the next slide This is the email communication that requests the transfer of That land from the successor agency fund to the general fund now When this happens between funds, in governmental accounting, each fund has to balance independently. So when I say balance, I mean in accounting speak, all of the debits have to equal all of the credits. So at the end of the day, the balance is zero. So when you're transferring from one fund to another, you can't debit one fund and credit the other fund. because then those funds aren't going to zero out. In this email, the instruction is to do exactly that. Debit the general fund, credit the successor agency fund. So what needed to happen in between there is an offsetting entry. So in the general fund, it would have been a debit to assets held for resale because we're recording that as an asset. And it would be credited to what we call an inner fund account. So it'd be a due to or due from another fund. And the opposing entry should have been recorded on the successor agency. That's not what happened either. In the middle, I show the journal entries as recorded. So in the general fund, we recorded the property, but our offset, so the other side of that entry, went to claims on cash, which should not have happened because no cash exchanged hands. And then a second entry was posted that reduced the claims on cash, so basically zeroed out the balance and claims on cash, and recorded it to fund a balance, which again is not what should have occurred. It should have gone to an inter-fund account on the balance sheet, not to fund balance. Two years later, It was determined that that property should not be recorded in the general fund. It should be in the successor agency. So a journal entry was recorded to reverse the transfer, but it didn't capture all of the original entry. So the reversing entry hit claims on cash, even though there was no balance remaining in that account, and assets held for resale But there was no journal entry to correct the amount that was sitting in fund balance. That is the amount that was recorded during the fiscal year 2025 audit as an audit adjustment for $2.9 million. So from 2022 well from 2020 forward and After adjustments in 2022 there was an additional so fund balance in the general fund was overstated by that 2.9 million dollars. Pause and let that sink in because that was a lot of information. OK. Seeing nods so I think we can we're safe to go. So I mean that's the mystery of the 2.9 million dollars. It was an accounting error. Somebody recorded it incorrectly. It was caught by your auditor. It was corrected. With that, we'll move on to the topic that's a little more tricky, and that is the depletion of the $10 million in unassigned fund balance. So as I mentioned, the city has multiple funds. Each fund has fund balance. What fund balance is is what's left over after you take the assets of the city and you reduce it by all the liabilities. What's left is fund balance. For those of you who are a little more familiar with private company accounting, that would be the equivalent of equity in a private company. Government, we call it fund balance. Each fund has its own fund balance. Fund balance can be categorized in multiple ways. There's five categories of fund balance in governmental accounting. One is what's called non-spendable. And this includes anything that would be a resource in fund balance that cannot easily be converted to cash. So think inventory, think capital assets, think prepaids. So for example, if the city pays for its insurance a year in advance and some of that's recorded as a prepaid asset, that would be considered non-spendable. The next category is restricted. Restricted fund balance is resources that are provided to the city from somebody else who can say what that money is for. An example is federal grant money. If you receive federal funds for a specific purpose, that is restricted fund balance because you cannot spend it on something else. Then you have committed fund balance. Committed fund balance is fund balance that is reserved for a specific purpose through official action of the governing body. So when you all make a decision and pass a motion that certain money is going to be allocated to a certain place, that is committed fund balance. Assigned fund balance is something that can be decided by staff based off of historically what the city has done or by the city council is something that should be held aside for a specific purpose. The contingency reserve sits in assigned fund balance. And then you have unassigned fund balance, which is basically whatever doesn't fit into the other four categories. It's the catch-all. So beginning in 2022, the city had about $4 million in unassigned fund balance. And that increased to just over $10 million in 2023 and in 2024. And then, as I'm sure everybody is aware, in 2025 that fund balance amount was completely depleted. And if we go to the next slide, we can show why. So the depletion of the unassigned fund balance occurred through operations of the city, to say it in plain language. There was an operating deficit in fiscal year 2025 of $7.4 million. What that means is that the outflows, so the expenditures, were higher than the revenues to the tune of $7.4 million. We also had transfers. What transfers are is when money from one fund moves to another fund of the city. So it's not going outside. It's going from, let's say, the general fund to the capital projects fund, the general fund to the IT fund, the general fund to the water department. Those are the transfers that we're talking about. And it's very common to see transfers to and from various funds within a city government. In this year, the transfers out were $4.5 million. So net transfers in and out to the general fund were a net out of $4.5 million. Then we add back in. what we've labeled as other financing sources. And what the other financing sources were it's not it was not additional money coming into the city to be very clear. A lot of what is categorized in there is related to adjustments that are made to the financial statements based on rules in accounting. So accounting has accounting standards have not always an intuitive way of determining what certain balances should be. I think a good example of that is the notion of depreciation, when you purchase an asset and then you expense that asset out over a 10-year timeframe, depending on the asset. That's an accounting rule that is used specifically. In this instance, what is comprising that $6.2 million is related to how you account for leases according to the governmental accounting standards board and how you account for subscriptions. And it's rather complicated, so I'm not going to get into the weeds on that. But we took a look at it, and that balance appeared reasonable based on what we looked at. Then we have the reduction for the $2.9 million that we just discussed. In addition to what we've just talked about, there was reclassification of $2.7 million from unassigned fund balance to either an assigned or committed or restricted category. So we're saying we looked at the unassigned and determined that this amount should be assigned, this amount should be committed, or this amount should be restricted based on the nature of those transactions. When all was said and done, we had remaining unassigned fund balance, which was a deficit of $1.2 million. So $1.2 million from the contingency reserve was used to offset that balance and we were unable to locate $290. We want to go to the next slide. As we said part of why this occurred was due to a planned budget deficit. What we're showing on this slide is the budget that was presented to council during the study session on April 20th 2024. And as you can see in the net operating surplus deficit column, there is a deficit of $9.36 million. On the right-hand side, my right at least, we show the approved budget for fiscal year 2025, which was approved on June 4, 2024. And that shows a deficit of $9.42 million. And that budget was passed by city council with a vote of 4 to 1. So that meant immediately that we knew there was going to be an effect on fund balance because the budget showed a deficit. We want to move to the next slide. Understanding that that is what is presented looking at how the numbers were presented there are ways that this presentation can be improved to improve the clarity of what is going on in the budget and what the city's financial status is. So the first thing we're going to talk about is beginning fund balance and I'm specifically talking about the beginning fund balance for the adopted FY 23 to 24 budget. That dollar amount should tie to audited financial statements. Because you want to say, hey, we've been audited. We know what those results are. Let's start from what we know the results are and then build out the budget going forward. That amount does not tie to the audited financial statements. There's a difference of about $468,000. So not millions, but not insignificant either. The other thing of note in the beginning fund balance in the budget presentation, and this is also true for the ending fund balance, is what is reflected in this spreadsheet only shows the unassigned fund balance and the contingency reserve. This does not show anything that would be classified as restricted, as committed, or any additional assigned classifications, only the contingency reserve. So the fund balance is actually far higher than that $29 million if you include all of the assigned, committed, and restricted fund balances. I'll get to why that's important in a minute. The second thing I want to call out is that the net operating surplus and deficit combines the operating results, which would be your revenues less your expenditures. So that's what the operations of the general fund look like. And it combines transfers. So with the way it's presented, it's difficult to isolate what the actual operational results would be because the transfers are lumped in. A MORE CLEAR PRESENTATION WOULD SHOW REVENUES, LESS EXPENDITURES, YOUR OPERATING SURPLUS OR DEFICIT, AND THEN YOUR TRANSFERS. AND WHAT THAT COMMUNICATES TO COUNCIL AND TO THE PUBLIC IS ARE WE OPERATING IN THE BLACK? ARE WE DOING A GOOD JOB WITH OPERATIONS AND THEN WE'RE TRANSFERRING THINGS OUT TO ROADS OR AIRPORT OR THE VARIOUS OTHER FUNDS? OR ARE WE OPERATING IN THE RED AND THEN STILL TRANSFERRING THINGS OUT? And that can affect your decisions when it comes to making fiscal policy calls. The next thing I will call out on this presentation is the MOE reserve. So going through the documents related to these budget presentations and listening to both meetings where these were presented, there was a reserve that was held aside for measure of effort related to roads. So a matching program related to funds that come in from the county. In 2024, that amount should have been moved from unassigned fund balance to assigned fund balance. And that move did not occur. It stayed in unassigned fund balance. So at the end of 2024, that unassigned fund balance of $10 million should have been $5 million if that $5 million had been moved. Okay, I see nods. This is good. So when we're looking at the proposed 2025 budget and we're showing a $9.4 million deficit and then we're adding back in $5 million, we couldn't really add back in that $5 million because it was never moved out. So that would have changed the ending results of the budget. of the budget. And then when it comes to ending fund balance again this only includes contingency reserves and unassigned fund balance. And why that's important is because particularly assigned and committed fund balances those are not concrete. They are not set in stone. Staff and council can make a decision to say, OK, well, last year we thought it would be a good idea to assign $2 million for this purpose. But now that we're looking at it and we have an operating deficit, maybe that's not the best idea and we can move it someplace else. So a better presentation of this information would be to show a full breakout of how everything is classified in your fund balance so you can see how much is set aside for various assignments and commitments and make a decision as to whether or not those should move. Next slide please. In conclusion no indicators of fraud or intentional misconduct were identified based on the procedures that we performed. We have issues related to financial governance and oversight accounting treatment financial reporting and budget presentation. The decline in unassigned fund balance was driven by operating results including a planned budget deficit and. The numbers and the factors adding to the decline in fund balance were not clearly reconciled or presented, which limited the ability of the city council to understand the city's financial position. Based on the work that we've performed, we do have some recommendations. If we can go to the next slide. So our first recommendation would be to improve the financial governance and oversight at the city of Fullerton. And we have two specific recommendations related to that. The first is to hire a chief financial officer, specifically one that has significant experience in governmental accounting. Because as you've heard, it's not easy. And it's not necessarily intuitive. So preferably a CPA, preferably a CPA with significant governmental experience. Another action the city can take is to have a finance committee. So a standing committee that spends more time in the weeds, so to speak, over the finances of the city and can ensure that things are being approved and things are being presented and errors are being caught and all the things that would clear up what we've seen in this presentation. Another recommendation would be to make sure that there are standardized accounting practices for recording Interfund transactions. Make sure that the accounting staff understands how those should be recorded and that it's done the same way every time and that it's hitting the hitting the appropriate general ledger accounts. We would recommend improving budget presentation and transparency. Reconcile the budget at the beginning to audited financial statements as soon as those numbers are available. and make sure that the fund balance classifications are clearly presented and that we're segregating the actual operating results from transfers so that that is a little more clear for decision makers. And then finally as part of our as part of our procedures we reviewed the city's financial policy And the financial policy could use some improvements. There's not a lot of operational guidance for how things should be recorded and what the processes are. There are some what we what those of us who live in policy land call aspirational phrases. So we strive to do this. We want to do this whereas policy policies should really be based in reality. We're going to do this. this is what our process is as opposed to what goals are. So we would recommend that the financial policy be revisited and revised to be worded in a way that would prevent future issues related to the finances. And with that, I will entertain questions.

Thank you for your in-depth presentation You know the recommendations. I'm sure this council will support implementing To your experience you mentioned a CFO Is that not the department head for finance have your experience with city? Municipalities is not is that not a carryover into their duties or are they outsourcing this? How are they doing that usually?

Some of it depends on the size of the city. But you can have, in cities I've worked with previously, you have a chief financial officer that oversees the budget process, oversees the accounting process, and oversees usually the procurement process. Underneath that, you have a head of accounting, a head of budget. and a head of procurement. So they're sort of overseeing all of the financial functions. And then you have people who are subject matter experts who really understand how those work underneath them. But what I would expect from a chief financial officer position, as I said, is somebody with really strong finance and accounting background, preferably a CPA, and preferably somebody with lots of governmental experience.

Now, beyond the recommendations that you've disclosed today, Are there any actions that this council can take to optimize the accounting process so something like this doesn't occur in the future beyond what you recommended?

I would suggest a thorough review of any of the processes related to finance. So taking a look at things like How are journal entries recorded? What is the approval process? Are the people who are approving the journal entries, do they have the knowledge to be able to understand when there is an error and make sure that it's corrected? So just making sure that there is enough review, approval, and reconciliation occurring that these things will be cut in a timely fashion.

Okay.

Sure. Go ahead, Councilman. Thank you for the work on this. I think this is very important work. And I do like all the recommendations, and I do agree that we have to work on our processes a little bit better, for sure. I do have just a question. You mentioned here that in your overview that you were not retained to investigate any specific allegations of fraud or misconduct, but then you are quite confident in saying that there are no indicators of fraud or intentionality. If you're not investigating this, how could you come to that conclusion?

So the conclusion is based off of the procedures that we performed so based off of what we've looked at related to those transactions which included a review of underlying documentation included review of communications as you can see in the presentation and included discussions with City Council and city staff that we did not see anything specifically related to those 2 transactions that would be an indicator of fraud.

Just those two transactions, but not the later presentations of the budget, right? And what you call the lack of clear governance, right?

So to... To restate that included the transactions themselves the depletion of the fund balance so we will what we looked at related to the depletion of the fund balance and the budget presentations that we discussed that occurred on April 23rd 2024 and June 4th 2024.

Could it be possible. I mean I I'm assuming that you're looking at the legal definition of fraud and misconduct. But could it be possible that this is a case where budget was presented. As a feel good budget. So sort of politically motivated to. Make it seem like it's better than it is.

What I can say is that I didn't find any indicators of. Fraud as that's defined within the standards that we we go off of and I can't really speak to any sort of additional motivations.

Do you. In the 2.9 million, it was not detected until 2005. Do you know why or whether it could have been detected in between in that period of time?

I don't know why it was not detected. It was detected in 2025 as part of the financial statement audit and I can't speak to why it was not detected prior to that time.

Did you look at previous financial audits because I think we've had at least a couple of those in that time right.

The city has been audited every year that I looked at from 2021 going forward. And that was not addressed in any of the communication that I saw related to the audit, which included the ACFR itself and then any additional communications that are the report to management issued by the financial statement auditors.

So the previous ACFRs and those are the annual audits that happened, they did not detect this either?

It was not included in the prior audits or any of the communication from the auditors to those charged with governance.

Could you explain how these annual audits occur when these groups come in and do this?

I can't speak to the procedures performed by your auditors. Audits are performed on a risk based on a risk based audit procedures are performed using risk risk based auditing procedures. Trying to think of a way to say that clearly. So I don't know what risk assessment process your auditors took or what they looked at or what their determinations were as to what their procedures would be. So I cannot explain why this was not caught previously.

Right. So is it is it. I WAS TALKING TO ANOTHER CITY MANAGER AND THEY SAID THAT THESE ACFER REPORTS, THE AUDITS, TEND TO BE DIRECTED BY STAFF THEMSELVES. SO HERE ARE SOME THINGS THAT WE WANT YOU TO LOOK AT AS OPPOSED TO JUST A FULL OVERVIEW INDEPENDENT FROM THAT. IS THIS ACCURATE IN ANY WAY?

I CAN TELL YOU THAT THAT IS NOT CONTEMPLATED IN AUDITING STANDARDS. Auditing standards require you to be independent and objective.

OK. And then I have, I think, in looking at some of these recommendations, some of these will cost money to implement. Do you think that this is something that we can manage? I know you're going to go through phase two, which is some of the recommendations on our budgeting and revenue and so on. But when you made these recommendations, did you consider our current financial situation?

We have and we've discussed with city staff about a. Amendment to task 2 to allow us to look at the budget but make additional step away from some of the economic development portion of it and free up funds for the city to be able to prioritize things like hiring a chief financial officer.

Anne's our expert in the engagement, but I'll talk about addressing your question. I think you're asking a really good question.

We did look at the financial implications of the recommendations.

And so as we look at, for example, putting in a CFO who has municipal accounting background, fund accounting background, and has a CPA, you currently have an interim CFO. That's not that individual's background. As Anne mentioned, this is a complicated area, so you need more expertise. So when we looked at our task two, as opposed to going forward with task two as planned, we thought it would be more prudent to allow you to hire the right CFO and allow that person to go back and look through the accounting processes The internal controls, whenever you have a breakdown of a transaction that's identified in an audit, typically there's some kind of internal controls that would have helped you identify, detect, correct that problem. And so there's probably a lack of some internal controls where things weren't detected internally. And so as opposed to having our firm come in and do that work at probably a higher cost because we're consultants, if you were to find the right CFO candidate, that would be their job. That's what their definition would be. they would likely be able to do that in a more thorough manner and at a better price point than what we would. So what we've discussed with management would be take the funding that you need, find the right CFO, let them correct the accounting program within the city, and don't use the funds you would have spent on consultants, right? and put that to better use for the public's interest. So we would propose then to change test 2 in that direction versus paying us money that really doesn't benefit you to the extent you need to be benefited. Additionally we've looked at the economic development situation of the city and normally when we go into a city there's already been a lot of a economic development plan conducted so we are there's a very thorough analysis like we can name other cities some that are very close in proximity to you where we've gone in we've looked at that they've already done a pretty detailed analysis and have a pretty solid economic development plan we feel like as opposed to having us continue with the look at economic development we were contemplating you would be better served to start with a very deep dive in economic development and really to do the right analysis and to flesh out a plan We could do that, but there are firms that focus on that, that are more equipped, that would give you a greater value than what we would give you. And so that's another element we're talking about with the city. Again, trying to think how you can more appropriately use your money to the benefit of the city versus just paying us the money as consultants. So I think our recommendations would be modify task two in order to put that money to use in acquiring the right CFO having the respect for that person let them go through uh scrutinize those accounting processes in detail look at the staffing that's needed look at the internal control environment to make sure that you're naturally detecting correcting the transactions that they happen so we don't see a future like this and also look at the budgeting process and make sure that's outlined consistent with the recommendation that hans mentioned And then as opposed to us looking at ways to help you in economic development, which you need, we need to increase the economic activities of the city. Really do a more thorough, detailed dive into that with people that do that for a living and get into that for the detailed purpose, which we also think could be more economical than what we would do at a greater value point for the city. So I'm not a very good salesman because I'd probably be here trying to convince you to do more work with us. But the reality, I think, is that the city will have a greater benefit by going that other direction. So hopefully that answers your question. But we are trying to think about the right thing for the city. It's not about just selling more consulting work.

Yeah, no, I appreciate that. It does answer my question. And you go a little bit further into it. So I appreciate that. And that brings me to my last question, which is on phase three of the audit, you don't see any reason for us to do that.

No. To remind everybody, the potential task three would be a forensic investigation of potential issues at the city. And based off of the procedures that we have performed for task one and based on the results of those procedures for those transactions, we would not recommend that at this time.

Okay.

All right. I don't have any further questions, but I have a one to our city manager to see if you know, how would we implement these or what the next steps would be for us, the council, to move forward with some of these recommendations and changes.

Yeah, let's get through council comments and questions first.

Sure.

Go ahead.

I guess first, thank you. It's always nice to have a consultant come up here and turn down, you know, money. Usually we're getting hit up for that left and right. So thank you for that. You know, first, I wanted to ask, I mean, with respect to the report, did we also look at, I know it was an internal audit focused mostly on some of the internal controls. Did we also look at, capital, I guess the outflow of capital specifically related to some of these redevelopment transactions?

We did look at the $2.9 million property purchase, which I mentioned in the presentation. We saw when it occurred, we saw when the sale was recorded, and we did watch the video footage of the presentation and approval of that sale of property just to make sure that it occurred and it was approved. So that was the extent of what we did for that transaction.

So there was nothing that looked at like what the capital, you know, basically how those funds were accounted for once they were dispersed to like the taxing or basically the successor agency.

I did review a agreed upon procedures report that was performed by the same firm that does the financial statement audit in 2025. And understanding is that that is still either being held by the city or held by the successor agency in anticipation of disbursement.

Okay, so those funds have likely not been dispersed by the city then at this point.

That was my understanding at the time.

Okay, is that, Director, is that safe to say?

No, recently we did release the amounts that were required for the taxing entities. We took this to the oversight board back in 2025 With the discrepancy it was identified in a prior year act for and we actually just got the Department of Finance clearance on this as well because those funds were Related to the recognized obligations as part of the successor agency. So everything related to successor agency Department of Finance approved it back in 2012 and So our role is to make sure that that is being executed. But the funds that needed to be remitted were the sales from Foxblock, as well as the West Park and TA partner project. Those were just recently remitted.

And as a result from the oversight board. There's no other potential liabilities on our books related to successor agency debts that we could have to account for somehow that would result in further unforeseen or unanticipated losses?

At this time, no. And we took this to the Department of Finance. The reason we took it to Department of Finance is the funds that we have available under the successor agency is related to the bond repayments that we have to make. And Department of Finance releases a certain amount of funds every year based on our reporting. We were short on that because of this misclassification and accounting issue. when we did other properties and we recognize that in 2025 we brought it to the oversight board then and we brought it again in 2026. We did a meet and confer with the Department of Finance and we received an issuance of clearance and they'll be releasing the funds necessary for us to meet our 2020 bond as well as there's one more year but we'll have enough to make those payments.

DIRECTOR DEWOLF. OK. Thank you. The other question or comment that I had you know I think there was there was a comment you know, made about, you know, kind of the establishment of some kind of a finance committee. I definitely think that's important. I also think, you know, really, you know, because I've obviously in the weeks and months since this initial situation had many people ask me about, you know, kind of the city's finances and kind of what we get as council members. And I think what's important to note, you know, really the extent of our, the financials we receive is an expense register that shows checks that were paid, you know, to various Vendors or employees and such and so I think it I really think we could do a better job As a city presenting those financials almost in some sort of a budget variance report where you know We set the budget obviously once a year and then we agree to those expenses and we understand the income that's projected at that time but the reality is I Think the extent of what we get is an occasional update by staff and we get an expense register each month Which really doesn't tell us how we're performing and it's in accordance with the budget So I think that would be one recommendation that I have. And I don't know if that's something that the financial software we utilize as a city, maybe that's a question for Mr. Avalos here, but I definitely think that's something that would be helpful for me because, again, we review the budget once a year, we get maybe a quarterly update, and then the extent of the financials that we get are these ongoing expense registers, which really only tells us, hey, that there was money spent and here's where it went. It doesn't actually say, where it was in relation to budget, if it was above or below what we expected. And so I know for me, that would be very helpful. And I think that would be a lot of helpful, because I know we have a lot of informed people who follow along at home. So that's very much in line with what you would see, I think, in the private sector with any kind of investment property or any other such interest.

OK. We'll definitely look into our financial system. And we do have other extensive reports that I'll work with the city manager's office and looking to provide in the future.

Thank you. All right. Any other? Go ahead, Council Member.

Thank you. And as the Mayor pointed out, this is the first time we're seeing this, and we haven't read the report. So I'm just going to ask you about some things that might be in the report. And I appreciate the comments from my colleagues who answered and asked a lot of the questions and points that I would have made. But in the report, you mentioned that you, the third recommendation here is that there's greater classifications in our overall budget presentation. And then you showed what we had seen before. Do you have an example of what the 2023-24 or the 2024-25 budget would have looked like if those procedures had been implemented then so that we could get a good idea of what we should be looking at?

Yes in the report there is a detailed table that has that broken out that shows it shows the transfers broken out from the operating results. It shows how much the contingency fund is. And then if you want to see an example of how fund balance is broken out it says Not meaning to be contrite here, but in the ACFER note 17 to the financial statements has it all broken out by all the various assigned, unassigned, committed. So I didn't put that note in the report, but that's where it would be located.

Yeah, and maybe the ACFER would be something that we could, that report, which is a separate report, might be something that would be more publicized than it has been in the past. Usually it's published and then not really discussed very much. I think that That might be helpful to have a clear presentation on that kind of thing later. And then my question, maybe for the city manager here, is that you're recommending that we hire someone. Today is June 16th, and our budget year starts July 1st, although it's going to be pushed into July this year. Hiring takes months. Do we have any capability of putting any of this into place for this year, even in the absence of that person that they're recommending?

I'm not sure I understood the last part of your question.

Well, the breakouts that they're talking about, the new budget, the way that it's going to be presented. So on July 14th, we're not going to hopefully see something that looks like what we saw before when we were at the budget study session, but maybe something more along the lines of what they're talking about that we have an example of in the report that's much more detailed and broken out. And members of our public have been asking for this in public comment quite a few times, saying that we're not getting the information that we need about what's going on with the operations budget, exactly what you're talking about. Are we able to do that more detailed look for our upcoming budget, or do we really have to kind of wait to hire the CPA who's going to be able to do this?

Well, to your point, Council Member, and I think you're correct, I think all the recommendations that Grant Thornton presented this evening are within our purview and scope, and I would certainly expect that as we go through the robust budgetary process that we're about to go through, with the exception of not limited to but the CFO which is I think not the scope of this council but rather the city manager and HR in our city but that would be my expectation I would hope that you would concur with that as well

So I'll just offer a few a few comments to the extent that today is June 16th and we're hoping to have a budget adopted by July 21st I cannot tell you right now that we're going to completely revamp our budget. Document. what i can say is that through this audit we are now in a place where we at least know that our starting position is accurate so it will take me some time as it will this council to digest the full information in this report and to determine best course of action going forward i think a lot of the recommendations are ones that we can certainly Look at our budget process today and start incorporating just to make sure that we're being as transparent as possible in particular with the presentation that ultimately that ultimately comes before you with regards to personnel matters those do take time. And I need to to discuss with my team Kind of how best to address these recommendations, so This is important and very useful and eye-opening Information and so I know the expectation of this council is that I will take all this information to heart and put it into motion so I But it is again. I don't know how much the budget Document is going to look different between now and July 21st All right Mr.. Mayor Rotem.

Yeah, I did have one other question and sorry I guess this might be more for the city manager But you know we did talk initially about going back to the auditor who had signed off on multiple years of the obviously the Kaffir report and Indicating that there were no issues and everything was fine have we gone back to them to seek some kind of like recompense for the services or to Notify of a potential claim. Where are we at in that process?

I know that Mr. Avalos did Have some communications with with our other auditor They didn't commit to anything in particular as follow-up to tonight I will want to talk a little more with Grant Thornton and see if there's any observations of the work of prior auditors and if there is any potential recourse. I do know, and maybe this can be addressed a little more this evening, these audits The annual audits in addition to looking at just you know basic fund balance numbers They do tests and they pick particular areas of the budget where they test transactions and look for vulnerabilities or inconsistencies and I think the question I keep hearing over and over again is why was the $2.9 million transaction not identified by auditors in prior audits? And I don't know the answer to that. If they weren't looking for, if they weren't actually testing successor agency transactions, it just never would have been part of the scope of any given year's work. And I don't know if you can comment on that further.

I can only provide the same information that I provided during my presentation, is that audit procedures are risk-based. So your auditor takes a look at what they're doing, sees where the risks are, and tests based on those risks. So without being a part of the audit, without knowing what those procedures were, without knowing what those processes were or what they looked at, I really cannot speak to why or why not. That was not discovered.

Okay. Any other questions or comments?

Yes. Thank you. Based on our short window of opportunity of time with all of your amazing recommendations thank you so much for the presentation. What are the next steps? What do you propose we look at first? What can finance do in the meantime before we get our budget in public's views?

I would say as far as prioritizing the five recommendations that are included in the report While having a CFO is certainly higher priority, it does take time. I think some of the budget clarification, I think it was recommendation three, is something that staff can look at to implement sooner, particularly when it comes to how it's presented. Of course, as the city manager mentioned, it's really just going to depend on timeframes and tight timeframe and making sure, because the supporting documents behind that Budget presentation are fairly robust, so there's a lot that rolls up into that. And just you don't want to rush changes to that and have it contain a bunch of errors. So it can be done quickly and accurately. I would say do it quickly and accurately. If it needs more time to be accurate, then take the time to make it accurate.

Thank you.

Moving on we've got two public hearings. We'll go to the first one appeal of Planning Commission denial of major site plan and Vesting tenant track map to construction third to construct 32 residential townhomes at one one one Westermost Drive and We'll have mr. Lopez present again good to see you in a tie again, sir Good evening mayor members of the City Council

On May 5th, 2026, the City Council voted 3-2 to deny the appeal filed by the project applicant and uphold the Planning Commission's denial. As such, a draft resolution has been provided as Attachment 1 to the City Council Staff Report. On May 19th, Cox, Castle, and Nicholson, representing City Ventures, the project applicant, provided a letter that agreed to extend the appeal deadlines. This letter is included as Attachment 4 to the Staff Report. And on June 1st, City Ventures provided a letter requesting that the City Council reconsider the project and, as the project applicant, voluntarily prepare a traffic impact analysis for the intersection of Harbor Boulevard and Hermosa Drive to analyze level of service, queuing, and collision history. The traffic impact analysis will be required to be approved by the City Traffic Engineer. The applicant's request has been included as condition number three on attachment two, which is the draft major site plan appeal approval resolution. Next slide, please. And as a project overview, it involves a major site plan, a vesting tentative track map for condominium purposes for the construction of three-story, 32 residential townhomes with 13% of the units or five of the units deed restricted to low-income households on property zoned R1-20. The project was submitted as a builder's remedy project pursuant to the Housing Accountability Act. Next slide, please. The recommended action is for the City Council to consider and act as it deems appropriate by denying the appeal or reconsider and approve the appeal subject to the added condition of approval requiring the preparation of a traffic impact analysis. This concludes staff's presentation.

All right. City attorney did advise me that As we have closed the public hearing there wasn't a need to reopen it I am however going to reopen the public hearing give the public an opportunity to make public comment So let's go ahead and do that open the public hearing

Let's hear from let's hear from the folks Mr. Before we did proceed one more point and that is that with respect to those who did testify at the prior public hearing? You're allowed in this proceeding to testify again because it's based upon the proposed resolution All right Oh one more thing if any of you have had contact with anybody regarding this project since the last Council meeting that requires public disclosure. You should disclose those communications. I

Okay. Anybody?

Actually, I had no contact with City Ventures. I did receive correspondence from a number of concerned homeowners, as I believe some of my fellow council members may have as well.

And those correspondence will be part of the public record?

Right. Yeah, and I had a brief discussion with City Venture folks as well as residences, too, which are e-mailed.

Go ahead. May I just ask a quick question on ? Is there a purpose to reopen? What is the stated purpose to reopen the public hearing? So we can hear from the public.

It allows public comment regarding the proposed resolution. They can speak either in favor or opposed to the resolution, which is essentially in favor or opposed. And the city measures the appellate. If you don't have that public hearing, you get no public discourse on the proposed resolution.

And the appellate will get an opportunity to respond as well. Okay. Thank you. Thank you for your patience. Please.

Hello and thank you for this opportunity to again voice our objections to the Harbor Hermosa Development Project. I'm Diane Siegfried and my husband Jim's in the back. I didn't make him walk all the way up this time. We are residents of the Laguna Lake area and we've lived in Fullerton for the past 40 plus years in multiple Fullerton neighborhoods. I spoke at the May meeting where the project was considered by the council. We were here as the vote was taken and the council upheld the Planning Commission's no vote on the project. It's our understanding that this agenda item is intended to formalize the council's support of the Planning Commission's denial of the project. If that's the case, the vote you're about to take should be identical to your original vote to get it officially on the record. If this instead is a reconsideration and re-vote, let me restate our concerns. We're very concerned about the safety and traffic impacts of the proposed project. For purposes of these remarks, I will focus primarily on the health and safety issues that will be directly caused by the new 32 unit 96 resident development. These are incremental effects on both the residents of the area as well as the many visitors to Laguna Lake. There will be additional traffic at all hours of the day as each of the residents come and go for work or other normal activities. The neighborhood streets are not designed for high volume. They are two-way roads. They are narrow with constrained sight lines. Additional traffic will mean additional accidents and additional pedestrian risks. The proposed traffic report is intended to look at the intersection of Harbor and Hermosa. and that's not the area that we're talking about. There will be additional traffic both by car and foot as the new neighbor's children commute to school at either Laguna or Hermosa elementary schools. If driving, many will turn west and cut through the Hermosa Lake area, again, the narrow highway. If walking, the kids may not be safe. There will be additional parking needs as the new residents Residents' guests arrive to visit them or see the lake. Parking is already an issue and it will be exacerbated by the additional multi-unit development with meager visitor parking. There will be interference with the fire truck and emergency vehicle in entrance and egress as a result of the placement. There will be substantial interference and backup of the cars that are turning onto Hermosa or across harbor. as a result of the location and there will be significant incremental traffic from the additional trash service providers and delivery trucks. In closing, this project is flawed. A traffic study will not begin to address all the issues caused by the proposed development. The 32 units of which only five are affordable will not solve the full the Fullerton homeless or housing issues. This neighborhood is not appropriate for a three-story development. Three-story developments have been confined to commercial units and apartments up until this proposal, and the fact that this project is coming in under a builder's remedy should not change that. The Planning Commission evaluated all these issues and, just last sentence, and decided the project in its current form was not appropriate for the site. The council did the same in May, and we ask that you vote for the safety and protection of this community by again supporting the Planning Commission with a no vote on this project. Thank you.

Thank you. Next speaker, please.

We do have one more registered speaker, Karen Laurida. Anybody else who'd like to speak now as you're tying the line up on the wall opposite me? And then we do have a couple hands in Zoom.

Okay. Thank you.

Karen Lareda, resident of Fullerton. Tonight, you can confirm your previous position to uphold the planning commission and deny the project, or you can reconsider and approve it. You guys really boxed yourself in with this one and everyone who pays any type of tax in Fullerton is going to pay the price. We can thank the council majority as this is an issue of their own making. Our housing plan has been out of compliance for some time, and little effort has been made to address it. Having shrugged off that responsibility, the city is left with virtually no options. The state may now implement the builder's remedy, essentially allowing it to override the council. Other cities have chosen to disregard state housing requirements and have paid thousands of dollars in related costs. Fullerton is hardly in a position to do the same. While I personally think that this site lends itself to a transition from single-family to multi-family housing, I would have liked to have seen a better design and perhaps fewer units, though I believe at one point there were 42 units proposed here. Better design goes a long way to making a project more acceptable. Councilwoman Valencia Once again, you are presented with an important and yes complicated decision I hope you have taken this opportunity to meet with the appropriate staff not the mayor To ensure that you understand the issues thoroughly that you understand the options that are available and the consequences of your vote this evening You need to step up your game

good evening elected council members department heads and dedicated fullerton staff my name is z i became familiar with the city of fullerton when i relocated here in 1978. i want to talk about the nuts and bolts issue of any housing project within the last five years a relative of mine bought a home in fullerton that home had been lived in for 65 years. The tax rate was $1,000 annually. The current resident pays nine times that much in property tax. I don't know how much that goes to the city, but here you got one property at 111 West Hermosa, and if you put in 32, I'm of the belief that your tax base is going to go up. Now, this is a legacy city. Some of the research I've done, you know, Disneyland considered putting their property here, but families didn't want that. So Anaheim got it, and their school district is the third, is in the top three districts in the whole county of Orange County. Top paid teachers, counselors, administrators, Because they have a tax base. They have a helicopter that the city of Fullerton uses when they look for missing children. Why? Because they have a tax base. Next thing, Brea Mall wanted to build a mall in Fullerton, but legacy families said no. So Brea got the mall and they got the tax base. I live in Fullerton. Do I want a high-rise next door? No, but if you're telling me I'm going to lose the police and fire because we've lost $13 million in accounting, I'd have the building go in so I could have some safety and security on my block. So for the people living around Laguna Lake, you can continue to oppose this, and the majority can continue to be a legacy family where you don't invite any business into the city that you have no clue about. about a development agency and how to get an automobile in here would solve all your problems which I presented for four years now and I've presented tax base data from Santa Ana and it's been passed out to every member and maybe you don't have eight acres for that but you have a chance to put some housing in and I'm sure you're going to draw more than that one house property tax on 32 units and at this point with what I just heard from Ann's presentation we might be in need of a few extra bucks. So for the eight or ten or fifteen families around Laguna Park I'm sorry But do you want to have a police department to come and respond when someone's breaking your door down? Do you want to have a fire department to come and put your house out on fire? It's on a corner far away from you. And yes, Anaheim didn't want traffic or children either when they were proposing Disneyland, but they got it. And not only do they have extra traffic and children around. But they have the schools and the tax base to pay for their needs. So sometimes you got to have a bigger view of life than just your little conclave of where you live. Go Titans, go Hornets.

Hello, Bill Redden. I think I've been coming here on and off for about a year and a half, and I'm kind of having a hard time coming up with new material. I want it to be reasonably entertaining if possible. I feel like I'm starting to live in a dystopian future where pickleball courts are replacing my tennis courts. This has really happened. Well, it's already happened. a two-story STEM vocational building is plunked down into the horticultural department at Fullerton College. And if you've seen diagrams of that, it's going to pretty much be the demise of the Hort department, which has been around since the 1930s with volunteers and student interns, plant sales, a lot of community activities. So they're probably toast. And then there is the three-story condo, which will pretty much overwhelm our neighborhood. So my question is, what do these three situations have in common with the pickleball courts, the STEM building, and the condo? They all involve disrupting various parts of our community to develop new projects. And these new projects, there's, you know, in general, no problem with that. My main point is it's a shame that there's not enough creativity around to save established community assets while developing new projects.

evening city council elijah manacero i just want to start that if if anybody has a problem with new housing they should go protest at st jude's maternity ward and not city council because populations grow so i just wanted to start with that but um i also wanted to make the point i used to live in mission viejo when i first moved to the united states And I lived in a suburban neighborhood in a track home. And right on the entrance to that suburban neighborhood was a apartment complex of over 150 units. So to hear people complaining about 32 condos sounds a bit ridiculous to me because I lived in that track home. I never had issues with traffic, with parking, or with anything like that. IT WAS OVER 150 UNITS. SO WE'RE TALKING ABOUT 32 CONDOS HERE. BUT LAST MEETING, NOT LAST MEETING, ON MAY 5TH, STAFF, THEY GAVE A PRESENTATION AS TO WHAT CAN CONSTITUTE A DENIAL FOR A BUILDER'S REMEDY PROJECT. AND DESPITE WARNINGS FROM STAFF, FROM RESIDENTS, AND EVEN FROM THE STATE, FROM HCD, THIS COUNCIL VOTED TO DENY THAT PROJECT AND TO NOT APPROVE THE APPEAL. YOU DID NOT HAVE THE FINANCE TO DO SO. SO NICK IN PARTICULAR WAS THE ONE WHO PROVIDED THE JUSTIFICATION, BRINGING UP TRAFFIC DEBTS, TRAFFIC ACCIDENTS, WHICH HE STATED WERE HE STATED HE DOES NOT HAVE THE FINANCE TO TIE THAT TO THIS SPECIFIC DEVELOPMENT. And I first I was going to come up here and talk about the fiscal reasons why you should not get us into an unwinnable lawsuit. But I have 13.7 million reasons to believe that you that argument will work on you because I don't think that you care about those kinds of issues. So instead I just wanted to point out that before Nick DUNLAP SERVED ON THIS COUNCIL. HE SERVED AS AN EXECUTIVE FOR THE APARTMENT ASSOCIATION OF ORANGE COUNTY, WHICH IS NOT A DEVELOPER, A LOBBYING FIRM, BUT IT'S ACTUALLY A LOBBYING FIRM FOR LANDLORDS WHO FINANCIALLY BENEFIT FROM KEEPING HOUSING SCARCE. SO APARTMENT ASSOCIATION OF ORANGE COUNTY HAS NOT CONTRIBUTED TO ANY LOCAL CANDIDATE, HAS NOT CONTRIBUTED MORE TO ANY LOCAL CANDIDATE THAN NICK DUNLAP. NICK DUNLAP WAS THE PRESIDENT OF THIS ORGANIZATION FOR THREE CONSECUTIVE YEARS. SO I JUST THINK THAT THERE IS SOME FINANCIAL BENEFIT that Nick Dunlap has to gain from his decision that is making the city legally liable, that is a conflict to say the least. Lastly, I've got 10 seconds. I would just like to say that staff needs to make their professional recommendations and not just put out two options. You guys are the subject matter experts and you need to say whether this meets the legal standard or not. You can't just put out both options. Thank you.

Hi Nan Harold District 4 I just wanted to speak as someone who is a resident of a very dense portion of Fullerton that has numerous apartment or condo complexes and large developments go in as opposed to the area where the Hermosa project is going in. So I have when we first moved in there was a large condo development or housing development that went in at the corner of Orangethorpe and Euclid. I don't know the number of units but what I've seen since that was constructed over a decade ago is that the issues with traffic and cars speeding through our neighborhood are not coming from that complex. It is right on the corner similar to the Homrosa neighborhood and I realize this is anecdotal evidence but just wanted to give you my experience and put that on the record. The vast majority of issues we have in our neighborhood is that housing is so unaffordable that you're now seeing multi-generational households that move into the same household together. You've got grandmothers going all the way down to grandbabies. Some of my neighbors have grandparents as well. The tax base is not expanding but every morning when I walk my dog I've started to count the number of cars that have that are in the driveways of each of these houses. The most I've counted is seven. The average in my neighborhood I would say about four. So your options in a way are whether or not you want to build more housing people are going to move in somehow. And I don't think that my neighborhood is any different from the neighborhoods in North Fullerton. This is happening because people can't afford housing. So you can either choose to have this regulated development that has an HOA that will provide adequate parking that has rules that will regulate itself. Or you can have residents moving in multiple families, building ADUs, bringing in multiple residents into a single household with no control over that, very little regulation that is possible from the city in terms of impacting neighbors. And I think the choice is clear about what would be preferable. So that's just something I want everyone in the north part of Fullerton to consider coming from the experience of a South Fullerton resident.

I wanted to express my support for this project. I can appreciate the concerns of local homeowners. However when you're a homeowner you don't own the area around you. I can understand the concerns about changes to things like local character but at the same time those need to be balanced against the needs of an entire population and our community is changing and our housing needs in this country and in our area are changing. Young people can't afford to live here. We don't have enough housing. No area is exempt from those needs. Now people who move into townhomes and condos are not inferior. They're not criminals. They're just people who need housing. All of my adult life I lived in apartments and now as a young professional I'm grateful that I at least have the means to kind of barely scrape by and have a home but I know that a lot of my peers are not in such a fortunate position and part of the reason for that is that we restrict housing so much that it drives up prices. It's hard for a homeowner who purchased their home decades ago to understand what it's like to be in this generation trying to afford their home. It's hard for them to understand what happens when they oppose legitimate housing projects. Now, I love Fullerton. I love its character. I don't think this project is going to change the character of Fullerton in any way. If you're worried about how it's going to make things look, you drive past it for about two seconds and it's gone. I don't believe that weaponizing False concerns about traffic safety are a legitimate answer to the stipulations about safety that would block this as a builder's remedy project. If you want to talk about concerns about traffic safety, come and talk to me. I haven't heard anyone mention that aside from myself. So this is a legitimate project. It addresses real needs in the community, real needs that are affecting poverty, homelessness, so many things in our community. If you want to complain about homelessness, I don't think you can simultaneously complain about new housing projects because that's logically inconsistent. Please go ahead and approve this project. Our city cannot afford a lawsuit from the state. We know that. This will bring in tax revenue. Our city definitely needs that. And people need housing and it's the only humane thing to do to provide additional housing. Thank you.

Hello my name is Kurt Johnston. Many times I cut through this neighborhood from Harbor to get over to Euclid and the streets in that neighborhood are very narrow even for a residential area. I feel like it's already unsafe. My opinion about a 32-room apartment is that we put it in a different location on some of our city-owned land. There's lots of places that are good for housing. This neighborhood just doesn't seem like the right location. Thank you.

Good evening, Mr. Mayor, city council members. My name is Curtis Gamble, activist for the homeless, veterans, the community as a whole. I'm a former real estate broker. I was a broker for 14 years. Joe Buss for OCTA, 14 years. I just wanted to share that with you. I'd just like to say I... I approve of this project. And the reason I approve of it is because we're in no position to say no to any housing. We have 300 homeless people here in Fullerton. And when I say homeless, I'm talking about the low income who are living with their family, barely making it because they can't find affordable housing. This is a real, real problem. It's a problem in the daytime. It's a problem at night because I hang out at night also, and it's just lots of homeless people in the streets and families hiding from you because they can't find housing. I think this Hermosa property is a great opportunity. You're just in no position to say no. You know, we have an emergency shelter here. It holds 150 people, but we have 300 homeless people here. We've been waiting for more beds, more housing. Everybody wants housing. Every opportunity we get, we must have housing. We're in no position to say no. I know you want to stick with your friends and do what your little buddies say. You know how you three guys stick together all the time. But this is very, very important. You wonder why we have $10 million in the hole. Because of decisions like this. This is not going to make us any money by saying no. Housing, it would rent out in one day. You know, we did real well with... The housing project right here on Commonwealth that we just opened. What's the name of that project? Right here on Commonwealth. Well, anyway. That 65 unit, it filled up just right away with no problem. Beautiful families living there. Go down, check it out. It just opened up a couple months ago. We didn't even have open house for that. But it's a good thing to do this. Let me say this. Do not stick together tonight. You're $10 million in the hole. You need to get out the hole, Fred. You're looking bad. You lost your board of supervisor. I've never seen anyone lose so badly in my life. And it's because you don't do what we're talking about doing tonight. You do what you want to do, and you see what it costs you. It's going to cost you more. That was the worst loss I've ever seen from a man who had way more money than anybody. Way more. And you still lost. Fred, stick with me. Listen. Don't do this. Go for it. Do the right thing. You're going to lose every election you try to go if you don't. You see how it feels to lose, Fred? Thank you.

Council my name is Andrew Reyes. I'm in district 2. I would like you to approve the appeal and support building these This 32 unit condo building on their Mosa So affordability is a big issue for a residence in Fullerton, especially for young folks in the in in the city So there's no way for there's no pathway for ownership for us if you guys keep denying projects like this and And not just are apartments super expensive, but you're also restricting the supply of homeownership. So these 32 units would help us out, especially with the partial affordable units. District two, we need to add more housing. So park dwelling fees are assessed on each unit of development, and this part of the city does the least amount of additional housing. So District 2, we're essentially being subsidized by the rest of the city because everybody else is building housing, and we're over here taking funds from everybody else to replace turf at Lyons Field for $2 million or support the maintenance of parks such as Laguna Park. So not just, we wouldn't just lose thirty two units but we'd lose the park dwelling fees associated with thirty two units which would amount to three hundred eighty four thousand dollars that money would be used to support parks such as Laguna Park and would also result in district two finally picking up the slack here lastly it was previously mentioned that there's certain break-ins that happen in the neighborhood this is a result of Everybody in the same area having the same income levels or same type of jobs. If everybody has a 9 to 5 then you know somebody is breaking into your home then they know where to when when to go. Everybody's going golfing at the same time then they know when to go. So having people of different income levels helps keep more eyes on the street helps reduce crime. So I support this project. Please do the right thing and build it. Thank you.

Hello, Mayor and Council Members. Sorry, you're having to listen to comments again. I apologize for that. I am Olga. I live in the Laguna Lake area. The neighborhood understood that the corner parcel would change someday, but not the single family home next to it knocked down and included to build 32 units. I don't understand the traffic estimates of only 16 cars coming and going that were listed for a three and four bedroom townhomes, which will have more than two people and two cars. The tandem parking homes, historically, people who have tandem parking do not use them for two cars. They use one, and then they use the guest parking, which takes away the parking for the guest. People leaving to work in the morning are not going to be pulling out two cars to get out if they have a tandem parking garage, which reduces the guest parking. My concern also is with how will public sanitation handle picking up the trash for 32 units? With the opening on Hermosa Drive, the sanitation truck will block traffic during its pickup for one or two bins. It's either going to pull in and end up backing up unsafely, or the bins are going to be out on the street. Will it back up from the complex, or will there be two or more dumpsters on Hermosa Drive on trash day, causing a narrow blind pass on Hermosa Drive? The trash trucks come three times a day, or trash, yard waste, and recycling. Also, there's a complex on bassin cherry near Stater brothers that the that's new and the X it does exit on to bassin cherry Which the speeds are just as fast as Harbor. So the entrance I don't know why it's not on Harbor instead of from Hermosa, which is just a small street Anyway, we want to be proud of what we build in Fullerton We want to build safe townhomes and homes that last and add to our community not create safety concerns traffic nightmares and infrastructure issues and There are so many unknowns with this project, as large as it is. The community, like I said, expected for the corner to be built someday. But taking down that single family just wasn't expected. That was never expected. Anyway, the issue is still health and safety. They haven't gone away. I do know that we are building a lot. We're building tremendously over on Rosecrans and everywhere. And I hope with all the housing we've added that staffing for both fire and police have been increased. And I believe that their budget should be increased so that they can accommodate for that. Thank you very much.

Good evening, Helen Higgins, District 2. I never expected that I would come up and speak in favor of that housing development, but as the previous speaker just mentioned, that development on the corner of Brea and Bastonchury I, too, was hesitant about that one. And now that it's been there for the last two or three years, I see no significant increase in traffic. It is lovely kept. The housing units are very nice looking. And as the proponents for this development have mentioned, Having more housing stock is just needed. There's no doubt about it whether you like it or not population is increasing and We certainly don't want to put them out on the street Let's provide some housing And I have to admit, I'm a little disappointed. It's only going to be five units that are affordable for lower income. I wish it could be more, but we'll start there. And so I would like to register my vote for the housing unit.

Thank you. Seeing no further comments. Go ahead, sir. Anything online while the speaker is coming? Two hands? Very good. All right. Good evening, sir.

GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. GOOD EVENING. OF THE FULLERTON POLICE AND COMMUNITY FOUNDATION AND I HAVE SERVED ON THE ADVISORY BOARD FOR THE FULLERTON POLICE DEPARTMENT HAVING HELPED SEVERAL POLICE CHIEFS OVER THE YEARS. I HAVE BEEN A RESIDENT OF FULLERTON FOR 46 YEARS AND MY FAMILY RESIDES IN THE LAGUNA LAKE AREA ON HERMOSA DRIVE. I'M HERE TONIGHT TO RESPECTFULLY REQUEST AND URGE THE CITY COUNCIL TO ADOPT the resolution before you and formally uphold your prior decision denying the project. Tonight is not about reconsidering the merits of this project. The Planning Commission has already conducted a thorough review and has denied the application. The City Council has carefully considered the evidence, the public testimony, staff reports, community concerns, and has already voted to deny the developer's appeal. The purpose of tonight's resolution is simply to memorialize and implement the decision that has already been made. The facts have not changed. The concerns have not changed. The reasons supporting denial have not changed. They remain just as valid today as they were when the council recently voted. As both an engineer and a longtime resident of this neighborhood, I remain concerned about the impact of public safety and health and the neighborhood compatibility. A 32-unit townhome development is out of scale with the surrounding community and would permanently alter the character of the area. But most importantly, the unresolved health and safety concerning residents that have raised consistent concerns regarding traffic issues, collision risks, pedestrian safety, we've already addressed all of these issues. THIS PROCESS HAS ALSO DEMONSTRATED AN OVERWHELMING COMMUNITY OPPOSITION. 160 RESIDENTS HAVE ALREADY SIGNED A PETITION, WHICH I EMAILED EARLIER TODAY. AND APPROVING THIS RESOLUTION SENDS AN IMPORTANT MESSAGE THAT COMMUNITY PARTICIPATION MATTERS, THAT THE CITY'S REVIEW PROCESS HAS MEANING, AND THAT DECISIONS REACHED PREVIOUSLY HAVE EXTENSIVE PUBLIC REVIEW WILL BE HONORED. SIMPLY PUT, THE PLANNING COMMISSION HAS SPOKEN. The City Council has spoken, and the reasons for denial remain unchanged. I respectfully request that you approve the resolution, deny the appeal, uphold the Planning Commission's decision, and bring this matter to a final and appropriate close. Thank you for your time and your service to our city.

Let's go to our two commenters on Zoom.

OK, Rick, you should be able to unmute.

Good evening, Mr. Mayor, city council members. Rick, can you speak up a little bit?

You're hard to hear.

Oh, sure. Can you hear me better now?

That's a little better. And the closed captioning is picking you up so we can read along.

Okay. With all due respect, the issue here isn't homelessness, housing, crime. local character or revenue, the issue has been and continues to be public safety and emergency response times. The developer tonight is offering to prepare a TIP, a traffic impact report. And if the council is considering reconsidering its earlier decision, well, we need to be aware that the TIP is just an exterior study. I've attended the Planning Commission meeting and the 5-5 Council meeting, and I haven't seen anything discussing how a fire engine and fire equipment navigates the actual site of this project. All I've seen is a flat aerial view with a boundary line drawn around it. There's nothing about emergency ingress and egress out of this particular project. And I may be using the wrong terms, but I think if the Council is intending on reconsidering, what we need is a comprehensive traffic and emergency access study. And that would be a study of, I think, based on the California Fire Code, of whether or not there's appropriate sight lines and queuing modeling to see if the fire engine for equipment can get in and out safely, especially since we're talking about a three-story apartment. apartment complex I know that there's issues that can be a model like fire department apparatus maneuverability and things like that and and if that hasn't been done and the City Council is considering reconsidering then I think that needs to be done first because I have not seen or heard any commentary or any presentation on getting in and out of the complex itself with heavy-duty fire equipment just getting in and out of Fire Station 4. So I would hope that if there is going to be reconsideration, this would be something that should be done first. Thank you.

Thank you.

And one more caller. Ben, you should be able to unmute.

Yes. Good evening, City Council members. My name is Ben Sexton, and I'm a resident in a nearby neighborhood. And I am in opposition to this project. The main thing I want to highlight is the safety issues here. If you're familiar with the neighborhood, and I think you really do need to be familiar with the neighborhood if you're going to vote here, which I heard some city council members mention in the last meeting that they were not familiar with the neighborhood and had not spent much time up here, yet we're voting in favor of this project. The streets are very narrow in our neighborhood. There's no lighting in the streets. There's no sidewalks. It's an active community. There is a lake down the street. There's a lot of bikers, a lot of people walking. I think if we bring excess traffic to this area, it's going to raise a major safety issue. especially at night. A lot of families like to walk the streets at night, and it can be quite dangerous if you add traffic to this area. It's going to present a problem, and it only takes one tragic event to look back and say, we made a pretty serious bad decision if we let this development happen. And I hope we all keep that in mind. I'd also like to point out that 32 units is not going to save the housing crisis that we have. Only five units are set aside for low-income residents. And the person running this product, City Ventures, is not here to save the housing crisis either. They're here to make a profit, and they're going to make a profit. And what they're going to do is they're going to make a pretty significant profit on the other 27 units that they're going to sell that are going to basically subsidize the five units. So I don't think this is going to solve homelessness. I just think it's, I just think someone's trying to make a profit here and take advantage of a state loophole that allows them to try to get in here and develop something by putting five units in here for low income housing. But let's really consider the road infrastructure we have and the safety concerns. Thank you.

No more callers.

All right, very good. Let me go ahead and give the City Ventures folks an opportunity to respond, make comment. Certainly, they were kind enough to listen to the public. Good evening.

Mayor, council members, we appreciate your continued time and consideration of this project. I went back and looked. It's been about two years, two and a half years, and the project in front of you has been shaped by, I'll call it intentional design, neighborhood outreach, public hearings, and throughout that process, just want to give a quick recap, we received numerous comments and implemented feedback that made sense for the project that we were able to, such as pushing these buildings as far east as possible to buffer that single family neighborhood, lowering the elevation of the site to minimize the scale of the buildings, We've increased the landscaping, planting density, and the size of the trees and shrubs for screening. We'll be improving pedestrian safety along Hermosa with a dedicated sidewalk and parkway. We also studied relocating the project entrance to Harbor instead of Hermosa, but we believe, along with the city staff, believe that this would actually result in less safe conditions for Harbor traffic as the cars would queue and slow down on Harbor Boulevard. Other improvements are also included in the conditions of approval that the neighborhood may benefit from. So upgraded lighting, we'll be installing street lights on the Harbor Hermosa frontages, replacing the ADA signals and repaving parts of Hermosa Road, to name a few. The project is also exceeding minimum parking requirements set by the city. And regarding the concerns related to traffic that we heard throughout the process, Again, to recap, the city traffic engineer had completed a traffic screening analysis that satisfied our traffic requirements under CEQA and stated that no further studies were required. However, based on the feedback and concerns we heard in addition tonight in the public, we have worked with staff and are committing to conduct a limited traffic study at the Hermosa Harbor intersection as a condition of approval. The scope of this study is to focus on queue lengths, level of service, and collision history in response to some of that feedback. So we still believe that this project after completion will create a better intersection for both cars and pedestrians by increasing visibility, creating safe pedestrian paths, getting them off the road. However, with this additional study and data, we hope that this directly addresses some of the remaining concerns about that traffic. I can touch upon some of the other, so the parking, you know, we mentioned some of this in the previous public hearings, but the The guest parking, the CC&Rs, those are all drafted very tightly so that if anybody violates those, anybody can report this to HOA and self-regulate to remove those cars. The HOA has the ability to place fines and liens on these units if they do not comply with the guest parking and keeping the cars in the garages. I'll address some of the comments too. So the trash pickup is through individual bins. not through dumpsters. And so we won't be blocking any of Hermosa. I believe that's in our conditions of approval as well. One of the last speakers had mentioned about the fire department emergency access. I can let the fire department speak closely to that, but they've reviewed the plans through the application process. And then on our, I think it was on our May 5th hearing, we went pretty in depth on that as well.

So

Overall, you know, we hope and urge the council reconsider our appeal to overturn the planning commission's decision and let us continue this process to provide much needed for sale housing, both market rate and affordable in this city of Fullerton. Thank you.

Thank you. All right. With that, I'll go ahead and close the public hearing. This is just a formality for us. We'll do the go around. And this is for a resolution to get this right resolution to denial. deny the appeal and uphold the Planning Commission's denial of major site plan and tentative track map for 32 residential townhomes on 111 West Formosa Drive. Anybody else want to add anything that wasn't added the previous?

Yes, please. I would love to. Thank you. And I'm sorry to hear you say formality because I really had hoped that some folks would have some open minds to new information, which they are agreeing to.

I meant the formality of the resolution, Madam Council Member.

Okay, thank you. I appreciate that folks are really listening because I do think City Ventures just said that they are going to do a traffic study, which was something that was asked for by council, and they don't have to do under state law, so they're going above and beyond. I just want to point out a few new things, and it did sadden me to hear that someone said that they were here on 5-5 and did not hear the incredible amount of information that our fire chief, gave when I asked the question about the emergency services, because that is important, absolutely. And just to summarize, they did a very in-depth study on it, and they don't believe that there's any issues. Public Works also did an in-depth study on the trash, and they worked with our trash hauler talking about this, and that's not an issue as well. Some new information that I would like to point out that I did not point out before. I just do want to tell folks where I do live. And I understand that it's a problem having very small streets with no sidewalk and no lighting. Absolutely. I really like that City Ventures is including in their plan that they want to improve the street, create a sidewalk, and put in lighting. And I think that we should be looking at that when we have our infrastructure projects. If that's a big problem over by Laguna Lake, I don't want any family walking in the dark to get hit either. Of course not. So of course we want something like that to be improved. But I do want to tell you my lived experience, because your lived experience for maybe 46 years has been in a single-family home. I grew up in a single-family home neighborhood in a 3,500-square-foot house. That was my experience growing up. But as an adult, I was not able to do that, even being someone with a master's and a PhD, public university professor. It is what it is. I got killed in the crash of 2008, so I lost my own townhome that was 2,500 square feet at that time in a single-family home. And so I ended up in apartments. And now I currently live in Fullerton, of course, in a townhome complex where the townhomes are 69 townhomes in my complex. So it's more than double the size of what you're talking about, 69 townhomes. The complex is as old as me. So right across the street from us is all single-family homes. My side, 69 townhomes. The other side of the street that is small enough to not have it, right, it's just a two-lane kind of thing. It does have a sidewalk, though. But it's all single-family homes. Many cul-de-sacs. There's no problems with traffic. We have a street that goes behind us. By the way, my townhomes are four-story. I live in a four-story unit. But from the outside, it actually looks like a two-story house. And it's the same size as a two-story house. And maybe for somebody who lives in a very large house, you can't conceive of what that would look like. But my four-story townhome, people are shocked to learn that it's four-story. Because it's a garage, and then it goes up. They know how to build these things so that it actually looks compact and it works with the neighborhood. And my complex is beautiful. When people walk into it, they always comment on how gorgeous it all is and the landscaping is and everything else. It's beautiful. Right next to us, across from a tiny street called Sapphire, OK, which, again, does not even have a lane going down it, which on both sides, it has to say no parking because there's not enough. You can't have cars there and go around. And there's also some commercial stuff right there, too. So it's, again, pretty crowded. Sapphire, right across from Sapphire from us, is an apartment complex with 210 units. Again, we're all right across from single-family homes. And if you've never been to that part of Fullerton, I invite you to come over to the east side and see over there, where we have single-family and townhomes and apartments all together. And we do not sit in traffic jams all day. I lived for a time in West Los Angeles. Trust me, I know what that's like. I have been in a place where to go 3 fourths of a mile, it takes half an hour. I know what that's like. This is not that. And a 32-unit townhome complex is not going to turn your neighborhood into that. I promise you. You might be scared of it, I understand that, but I promise you it will not. It just won't. The other thing I would like to point out that wasn't brought up last time, and I really feel like we are being derelict in our duty if we do not talk about this, is that before the last meeting, just before, HCD did send us a letter. And it has been posted. You can see it. It was on the 5-5 meeting, posted as supplemental material. And I reviewed this letter after the meeting, too. And I've been very afraid that HCD was going to implement what they said in this letter. But my understanding is they're waiting to see what happens tonight. But at the very end of this letter, It says, and I'm just going to read it, under government code section 65585 subdivision J, HCD must notify a local government when that local government takes actions that violate the HHA, SBDL, housing element law, and other laws that HCD enforces, and may notify the California Office of the Attorney General of these and other violations of state housing laws. HCD will monitor the city council appeal hearing to assess actions responsive to the findings in this letter. Additionally, HCD informs the city that AB 712 went into effect on January 1, 2026, so new law this year. Among other things, the new law increases penalties that a court may impose on local government. And again, we know that a court imposed $14 million worth of penalties already on one local government that tried to do this and was found to be liable. may impose on local government if the local government was advised in writing prior to the commencement of a lawsuit brought by the Attorney General or HCD that the local government's decision, action, or inaction would represent a violation of specified state housing laws, this letter serves to inform the city of that fact, that improper denial of processing of the project would violate state housing law as specified above. So we've been warned. We've been warned. And if we uphold this denial... All I can say is God help us.

Okay. Any other? If I may, I'd like to say a few words. I just wanted to clarify a few things that were said. I know that affordability is an issue, and especially for our younger generation, but it's also an issue for families and seniors. So a lot of seniors are losing their homes because they're not able to find because the cost of living is going up. I also want to correct another point that 70 to 80 percent of new housing, according to our housing element, is going to be on the south and southeast side of Fullerton. So I didn't see many people come and complain about that. the these housing units the 32 units they're for purchase they're they're not rentals they're for purchase and these are considered entry-level families with maybe a new family coming in uh and with their kids and they'll enroll in schools and so on we saw that same model on the Baston Sherry project that back in 2019 I think or 2020 something like that was approved and there were similar concerns then and again over time all they did was bring new families into the into the area so new neighbors will come into the area but I also want to point out that changing of characteristics is not and it's it's a subjective issue so cannot be used in this particular case where we're looking for objective. Issues that could that that are based on data and facts and studies. The planning commission decision was a 3, 2 decision was not unanimous and the PRESENTATE THE REASONS WERE NOT CONSIDERED OBJECTIVE. THE RECOMMENDATIONS OF STAFF WERE NOT FOLLOWED RECOMMENDATIONS OF STAFF WHO ARE THE SUBJECT MATTER EXPERTISE THEY ARE THE PEOPLE WE HIRE TO PROVIDE THEIR INPUT THEY RECOMMENDED THE PROJECT AND THEY ALSO ADVISED AGAINST DENYING IT BASED ON THE FACT THAT THERE WERE NO OBJECTIVE DATA ON HEALTH AND SAFETY AND TRAFFIC PRESENTED. OUR COUNCIL ALSO AT THE LAST DECISION THAT WAS A SPLIT DECISION. IT WASN'T UNANIMOUS AS WELL. AND SO TO ME I HAVE TO GO BY WHAT THE FACTS ARE AND NOT BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY GOVERNING BY Are all these are any of these. Issues that were brought up subjective and the or objective and the answer was no there are no findings that to justify denying this project so I think. The denial of this if we continue down this path yes there will be consequences it will be financial consequences. We could face even a decertification of our housing element, which at this time protects the city from more builders remedy projects. And so it could open us up to even more of these types of projects that may not have developers who are kind enough to make adjustments like the developer here that we have currently. So I think we need to look at the overall best interest of the city. And I hope we can all act as one community and then just move forward with this as is, with the new recommendations that the city ventures were gracious enough to do.

All right. I'm assuming we don't need a motion. The resolution is on the table. The vote's just to deny or to approve.

We would read the resolution title into the record. And if there's a motion to approve that, there's been no motion on the floor yet to approve the resolution.

OK, let's go ahead and read the resolution to approve the denial.

Resolution of the City Council the city of Fullerton, California denying an appeal and upholding the Planning Commission's denial of a major site plan investing tentative track map One nine three four two for condominium purpose for the development of a 32 residential townhomes and property zone are 120 one family residential minimum lot size of 20,000 square feet located at 111 West Hermosa Drive.

All right, I'll go ahead and move that tonight. I Will second and I do have comments though. I would like to say I First, I want to address a few comments that were made about me. First of all, I think anybody here who is in attendance and maybe some of the folks that are a little more political savvy and for those who maybe are not, you should know that any of the forms that were referenced related to my occupation, how I make a living, obviously it's no surprise. I work in the real estate investment and property management business. I'm second generation. I was born and raised here. You can see my name on buildings around town, although my dad will point out that those are his buildings, not mine. And I say that because I think importantly, you know, and kind of having been a leader in that industry, I had been involved with a nonprofit trade association. Again, none of these are secrets. These have all been, I mean, advertised as part of my professional biography. They're on social media networks and such. So I say that because I think it's important to bring that up tonight and to let everybody know if you do have concerns about, you know, any kind of disclosures related to my profession, my occupancy, Form 700 is filed at the city clerk's office. You can also access those forms online. Additionally, there was, I think, reference made to campaign contributions as well. I do think it's a bad form to discuss those at council meetings. However, those forms are also filed at the city clerk's office. You can access those online as well. And you can review and YOU KNOW, ANSWER YOUR OWN QUESTIONS ABOUT, YOU KNOW, THE AMOUNT OF MONEY THAT I RAISED OVER TWO CAMPAIGNS FOR COUNCIL. AND SO I DID WANT TO ADDRESS THOSE TWO ITEMS BEFORE THE VOTE. YOU KNOW, AND I ALSO WANTED TO SAY WE'VE HEARD A LOT, I THINK, YOU KNOW, IN THE PAST FEW WEEKS AND MONTHS, AND CERTAINLY THIS IS SOMETHING THAT I'VE BEEN, I MEAN, I THINK FROM THE MOMENT WE FIRST HEARD ABOUT THIS PROJECT, BOTH FROM THE COMMUNITY AND ALSO FROM CITY VENTURES, HAVE BEEN INVOLVED IN A NUMBER OF DIFFERENT MEETINGS AND CONVERSATIONS, PROBABLY AT THIS POINT, I MEAN, UPWARDS OF MAYBE EIGHT TO TEN MEETINGS THAT WE'VE HAD. I THINK IT'S REALLY IMPORTANT TO NOTE THAT THE CONCERNS HAVE BEEN SHARED OPENLY FROM THE COMMUNITY AND I THINK CITY VENTURES HAS HAD EVERY OPPORTUNITY TO LISTEN TO AND INCORPORATE THOSE CHANGES INTO THEIR PLAN AS IT'S COME FORWARD. I THINK MOST IMPORTANTLY WHAT WE'VE HEARD TONIGHT WITH THIS DIALOGUE AND THIS DISCUSSION, I THINK IT'S REALLY POOR FORM TO MAKE DECISIONS or determinations based on a North Fullerton versus South Fullerton or East Fullerton versus West Fullerton. Those are just bad decisions all around. And I think as we approach something that's so important, we need to make sure that we can put that kind of nonsense aside and really focus on the facts. So at the end of the day, I think that's why I'm supporting the resolution here tonight. So with that, Mr. Mayor, those are my comments.

motion we're ready for the vote best time is now councilmember Charles and let me just clarify a no vote is no on the denial is that's the motion is to uphold the denial so no councilmember Valencia thank you to City Ventures for agreeing to the traffic study so I'll be voting no on

With the deny the appeal.

Okay.

Okay.

Council Member Zahra?

I will vote no to deny the appeal, right? Is that what it is? I think you have that right.

Yes. Mayor Young.

Aye.

Motion fails, 3-2.

I'll make the motion to the second alternative option, right?

That includes the adoption of two resolutions. We'd have to have those two resolutions read into the record by the city clerk.

Do we have a second? I'll second. Okay. I do not have those in front of me, so... Should we take a break while you find those? I will pull them up very quickly here.

I'm sure Sunayla has them right there.

Okay, we are doing a resolution of the City Council of the City of Fullerton approving an appeal and overturning the Planning Commission denial and approving vesting tentative track map one nine three four two four condominium purposes for development of 32 residential townhomes of property zoned are 120 one family residential minimum lot size of 20,000 square feet Located at 111 less West Hormosa Drive and finding the approvals subject to the info category exemption Under secret guidelines section 1 5 3 3 2 and a resolution of the City Council of the City of Fullerton California approving an appeal and overturning the Planning Commission's now improving a major site plan to construct 32 residential townhomes of which five will be deed restricted for low-income houses pursuant to housing accountability and Government code section six five five eight nine point five on property zoned are 120 one family Residential minimum lot size 20,000 square feet located at 111 West Hermosa and finding the approval subject to the infill categoricals exemption under sequel guidelines section one five three two Okay, was there a second on the yes, I seconded it okay, all right very well madam clerk, please call roll I Councilmember Charles. Aye. Councilmember Valencia. Aye. Councilmember Zahra.

Aye.

Mayor Proptan-Dumlap.

No.

And Mayor Jones. No. Item passes.

We'll move on to second public hearing item. It's a general plan amendment to adopt open space and conservation element as the Fullerton plan appendix M and to replace chapter 19. All right. Who is our senior planner? And I assume in the presentation somewhere that she is going to conclude and advertise or disclose that this is a dotting an I and crossing the T, correct? Yes? Something we have to do, right? Okay.

I'm sorry. Mayor, could you clarify that question or statement?

That this is something that we have to do and it's a dotting the I and crossing the T Yes, that is correct as part of the general plan.

It is required to have an open space element update. What is new before you? Actually will come later as the environmental plan But yes today is a chapter in our general plan that will need to get updated per HCD requirements Understood is here or senior planner who will be making the presentation today evening.

Good

Good evening mayor and the members of the City Council tonight we're presenting the open space and conservation element update for your consideration and adoption The city is required to update its open space and conservation element, the OSE, to comply with Senate Bill 1425 signed in 2022 with a compliance deadline of January 1, 2026. In Fullerton, open space includes parks, trails, and recreational areas, as well as lands preserved in their natural state for conservation. Chapter 19 serves as the current element, adopted in 2012 and has not received a comprehensive update since. The open space element is a core component of the Fullerton's General Plan, the foundational long-range policy document guiding growth and land use. Adoption is required by state law. The update must specifically address three areas, equitable access to open space correlated with the environmental justice element, climate resilience correlated with the safety element, and the rewilding opportunities correlated with the land use element. Next slide, please. Here's a quick summary of what you are being asked to consider tonight. The primary item before you is the open space and conservation element itself, which replaces chapter 19 of the general plan and will be formally filed as Appendix M. Accompanying it is the Appendix M supplement, which contains the online public survey responses. During the public review period, staff received several public comments. These have been reviewed and integrated into the element and its goals and policies as applicable. Adoption requires a general plan amendment. Importantly, this is primarily a policy integration. There are no direct land use changes or zoning code modifications. The Planning Commission unanimously recommended the element for City Council adoption by a 5-0 vote, approving Resolution No. PC-202606, on April 22nd, 2026. And finally, the element is exempt from CEQA under the common sense exemption section 15061B3 and the draft notice of exemption has been prepared. Next slide please. This slide shows the project timeline. The open space and conservation element and environmental justice element kicked off together in September 2025 with research and analysis, followed by public engagement, including an online survey and a community pop-up event at Oktoberfest. That led into vision and policy development, an administrative draft element, and then an action plan draft. A 30-day public review period ran from February 20th through March 20th, 2026. We then completed a draft notice of exemption and the Senate Bill 18 tribal consultation process. The Planning Commission public hearing was held on April 22nd, 2026, where the commission recommended adoption of the open space and conservation element. We are now here. Tonight's City Council public hearing is our final step before adoption. Next slide please. The element is organized into three main sections. The introduction covers purpose, statutory requirements, and how the OSE relates to other documents. Existing conditions exempt our open space inventory, habitat conservation, wildlife connectivity, and the climate vulnerability. Goals and policies present seven updated goals. And the survey supplement captures online public survey responses as Appendix M supplement. One note, the action plan containing over 130 action items is an internal city document and is not filed with the OIC. Next slide, please. The community engagement program reached residents through multiple channels. Over 35 days, October 27th through November 30th, 2025, our online survey gathered 642 responses across five topic categories. That is a strong turnout, reflecting genuine community interest. We also hosted a pop-up booth at Oktoberfest on October 30, connecting with over 150 residents in person over four hours, distributing 100-plus flyers, and collecting 85 responses across two activity boards. Next slide, please. Here you can see the full range of outreach channels and materials we deployed. A dedicated city webpage, physical banners, social media posts, email blasts, and a SUFA digital display boards at a transit center, all designed to maximize community awareness and participation. Next slide please. Survey results showed strong and active open space use across the community. Over 85% of respondents visit open spaces in Fullerton regularly. Popular destinations include Hillcrest Park, Laguna Lake, Craig Regional Park, and Coyote Hills. The most commonly cited barriers were time constraints, lack of amenities like restrooms and shade, and safety concerns, not cost of transportation. Residents told us that they want cleaner restrooms, better parking, more shaded seating, improved maintenance, e-bike restrictions, and enhanced safety measures. Next slide, please. On the rewilding side, over 78% of respondents are aware of wildlife areas in Fullerton, particularly at Coyote Hills and Laguna Lake. Residents most want to see native planting, expanded tree canopy, and habitat restoration. Over 77% identified areas to preserve or expand, with Coyote Hills topping the list. For ongoing outreach, residents preferred nonprofit and school partnerships, community workshops, and online service. About 58% provided contact information to stay informed on planning updates. Next slide, please. The element includes a full open space inventory. Fullerton has 50 public parks, totaling approximately 665 acres, seven joint-use school parks at about 18 acres, and five habitat conservation areas, totaling approximately 700 acres. This includes the Robert E. Ward Nature Preserve. at approximately 72 acres. The inventory also includes four other open space areas. The maps here show both the open space inventory exhibit 2-1 and the primary recreational trails overlay exhibit 2-2 which illustrates the trail network including regional backbone and connector trails as well as trails not yet constructed or developed. Next slide please. On park access, Fullerton ranks better than 82.4% of California cities, which is a strong foundation. However, several census tracts fall below average, and a number of areas lack a park or open space within a half a mile walkable distance. These gaps inform our equity-focused goals. Next slide, please. Well, extensive urban development does limit wildlife corridors, but smaller-scale rewilding efforts, native plantings, habitat enhancements, wildlife-friendly infrastructure, all still can create meaningful pathways for wildlife movement. On the canopy side, California's urban tree canopy averages 14.5%. Several Fullerton census tracts fall below that benchmark, particularly in districts four and five. Next slide, please. In summary, habitat connectivity areas in Fullerton largely align with existing open space. On access, most census tracts are well served, but five tracts have been identified where 50% of fewer residents live within a half mile of park or open space, a key equity concern the element directly addresses. Next slide, please. The final step in developing this element was drafting seven updated goals. Each goal is supported by detailed policies available in the version for adoption tonight. Let me briefly walk through each. Goal one, promotes responsible management of existing open spaces, balancing public use with ecological health. Goal two, guide planning for future open space acquisition and stewardship. Goal three, protects Fullerton's natural systems, habitats, waterways, and native biodiversity. Goal four, increases accessibility and trail connectivity. Goal five, strengthens open spaces for biodiversity and climate resilience through rewarding and nature-based solutions. Goal six, addresses infrastructure resilience against extreme heat, flooding, and other climate hazards. Goal seven, strengthens community participation and multilingual engagement. Together, these seven goals directly respond to Senate Bill 1425's three mandates. I want to emphasize, no fiscal policies are proposed. There are no new fees, assessments, or financial obligations associated with this element. Next slide, please. Following today's hearing, staff will submit the adopted element to the Governor's Office of Land Use and Climate Innovation in June 2026. The city is working to adopt as close to the January 1st, 2026 statutory deadline as possible. Next slide, please. As required by Senate Bill 18, the city notified all California tribes identified through the Native American Heritage Commission's secret land file search. Initial notification letters went out March 5, 2026. We received four responses from tribal groups, and a consultation has been completed in advance of tonight's adoption hearing. Next slide, please. Staff recommends the city council adopt resolution approving a general plan amendment to adopt the updated open space and conservation element as appendix M of the Fullerton plan and to replace chapter 19 in its entirety. The element is CEQA exempt under the common sense exemption section 15061B3. And staff and our consultant Michael Baker international team are available to answer any questions. Thank you.

Thank you. You get a break for a little bit. That was a lot. Let's go ahead and open up this public hearing. Let's hear from the public. Any members of the public?

I do have one question for staff. I don't know if we can hold it. Can we hold that?

Yeah, if you don't mind. Sure. Thank you, Council Member. All right, let's hear from the public. Madam Clerk?

One person registered, Jensen Hallstrom. Anybody else who'd like to speak in chambers, please line up on the wall opposite me.

good evening council and staff I appreciate this open space element amendment to the general plan to be hopefully an effective guiding document to allow the city to improve management standards and also accessibility especially equitable accessibility to open spaces in Fullerton I would like to say that probably one of the most significant projects in recent history that has improved accessibility and also created opportunities for rewilding has been the Union Pacific Trail. And this is Really amazing to have seen the hundreds of California native oak trees and sycamore trees and hundreds of native sage and and penstemon and buckwheat shrubs, which all provide habitat for local wildlife, all of the families and and people who actively use. the trail, which every time I visited, I do see multiple families. I see individuals jogging, you know, just enjoying this well-designed space. And now you are starting to see the habitat. improvements. When you go on the walk now with the established sage plants, you see hummingbirds, you see birds using this space, you see pollinators. And that is an experience that is so incredibly valuable for young children in South Fullerton to have the experience to be in a ecologically rich area. A lot of the open spaces in South Fullerton do not have many native plants, do not have much intact habitat. In fact, most of the South Fullerton parks are mostly turf grass and there have not been many plantings in a lot of those parks. So I would like to say that For the benefits of especially District 4 and 5, I think the city really needs to take seriously creating the nature park at the former Basinturi tree farm sites, which collectively is over 15 acres of open space that is accessible most easily to the Gilbert Park, Olive Park, and Valencia Park neighborhoods. especially and only really if for pedestrian and bicyclist access to create a linkage across the Bray Creek Channel at Malvern and Gilbert, which I previously mentioned to this council, there is no safe access. This plan said that transportation is not a barrier to access, but if you want to walk or bike from any of those parks across Gilbert, it is not safe. So I'd just like to say that. Thank you.

These tall people. OK. First of all, I'd like to support the update that's being presented here. I believe it was supposed to be done by January 1st. However, we will accept it a little bit late. I do have a couple of issues that I would hope would be addressed in the very near future, perhaps in the budget discussions. The Quimby Act allows cities to collect parking loo fees for new development. And Senate Bill 1425 requires environmental justice and calls for all residents should have equitable access to open space. Given both of these and the clear lack of open space in District 4, I suggest that all park-in-lieu fees collected by the city, whether it be citywide, should be designated for open space improvements in District 4 until such time as there is greater equity in that area. The other issue that I have is in reading the survey, there was mentioned by the AHAJMN And please everyone it is the Hatchiman not the one in use the one in use or what the mission people called them. That is not what they called themselves. These are important people to our our his our history here in the city. And I would hope that somewhere we would find some kind of a space where we could offer a memorial a testimony a space that they could use to recognize their importance and significance in the city. And then lastly, I want to thank some of my friends. We walked and knocked on over 715 doors in this last election, and we will do it again. But in the meantime, I'm going to retire my Connor Trout button until such time as I need it in the fall. So thank you very much for those people that are active.

All right, next speaker.

GOOD EVENING, COUNCIL. MY NAME IS JOSEPH MALDONADO. I'M THE PARKS AND RECREATION COMMISSIONER. I'M HERE TO ASK FOR YOUR APPROVAL FOR THIS AMENDMENT BASED OFF OF WHAT PLANNING COMMISSION the Parks and Rec Commission has recommended as well. Just based off of this year and me being a climate, or me being a scientist as well, it being a El Nino year with the oncoming, Just based off of what the presentation the former speaker has given us, I know for a fact that both the 5th District and the 4th District have a significant lack of canopy coverage, with only the Northwest Fullerton, I think, being around 20%. I believe that this passage of this amendment would help in the long run increase that, canopy coverage, but also harbor as something to go forward with when our parks master plan eventually comes to council. I would also encourage what the last speaker said of developing a memorial for those four native tribes that not only participated but just have taught climate resilience and leadership within the area for all these years. I want to thank you for this time and urge the passing of the amendment. Thank you.

All right. Anything on Zoom.

We have one on Zoom. Jane Reifer you should be able to unmute.

Yes, good evening and thank you for the opportunity to talk about this issue. I can't see the timer in my view of the screen. I wanted to say that or ask if the council knows that there is also a parks and recreation element in the general plan. So that's already existing in the general plan and then now also we're revising this open space and conservation element. So I would like to suggest that we prioritize the habitat conservation areas and over the parks by listing them first on the maps, listing them first in the legend, and in the policy area of the document so that parks don't get double representation in both elements, that the conservation aspect gets higher priority in this element. I'd also like to see, supporting Goal 3, I'd like to see a documentation with just a simple map of the canyons and creeks. In Fullerton, it's often overlooked, but it really supports the open space and the wildlife corridors. And the comments on my request said that the city did not provide a map. This is very easy to provide and I think we should add it in. I'd like to see two very unique circumstances that support goal one with responsible management. The Grace Ministries Open Space Triangle and also the Hunt Center both have a very unique situation where the city actually has jurisdiction over their um plantings and uh even though it was misunderstood in my comments and so i don't think they don't think that the people who wrote the responses understood that the city has the responsibility to take care of these areas and maintain the open space so um i'd like to have that added in so it's not continually overlooked i'm happy to describe that more And also, I don't believe that this should have just a notice of exemption. I think that there should actually be an EIR addendum since there was an original EIR. Just, you know, I don't think that'll go anywhere, but I wanted to state that. And lastly, regarding trees, can there be some stronger, stronger verbiage in here about protecting trees? For example, I know that the policy that it was it was told to me there was the simple to document existing trees on development projects that's something the city can easily do and already does sometimes but i'd like to see it done more regularly um the response to my comment about that said that um that the city already has rules for existing trees but that's it's not quite accurate um so i'd like to see that strengthened in this element thank you very much

All right, go ahead.

I would like to also see some adoptions to this conservation element. I'd like to reinforce that the property that Grace Ministries has received from the city on the corner of Magnolia and Commonwealth has not even been, after that agreement, they have not even maintained or cut the weeds there. It looks pretty bad. The conservation of the trees should not just be preserving trees, but also should be maintaining them by weeding out the large trees that are breaking up the sidewalks and and That makes a city look good when you have the trees will maintain trimmed I like the canopy, but I feel like Fullerton is overgrown. I don't understand why so many trees are necessary. I feel like trimming back the trees and planting some new trees will help encourage the town to look nicer. Thank you.

Anybody else? Good evening elected officials, department heads, and dedicated staff. I want to come up and say that I support a dedication to the native indigenous people of this land, which was presented by another speaker. As an individual who was born outside the Black Hills of South Dakota and who is indigenous and native, I support some sort of a dedication that we recognize the people who not only lived here before the Europeans took our land away and put us on reservations. But recognize that when we lived here for over two million years that we were one with nature and we preserved areas we lived in rather than dig them up, mine them, drill. Our native traditions We're to be one with the land and to honor our space that we lived in rather than to destroy it. So let's dedicate something to the indigenous people that were here long before the invaders arrived.

All right. Seeing no further speakers, we'll go ahead and bring this back. I'll close the public hearing, give this to council comments or questions that you have of our staff. You want to kick us off?

It was just a really simple question. And I do want to point out also that when you look through the documents, the implementation policy and actions detailed table is really great. So thank you for providing that. But one thing that wasn't included in here was the actual responses from the tribes. I saw the summary of the one tribe in the staff report that was mentioned, but I was just wondering what the other ones had said. Did they just acknowledge receipt, or were they generally positive about it in general? I was just curious about that aspect of it.

Just general acknowledgment.

So are we concerned that there might be opposition at any point.

Because there's no there are no land use changes it's only modifications so they just acknowledge receiving the notification letter in the future if there are individual projects with ground disturbance then we'll go to notify them.

Okay so and I I'll just conclude by saying I very much appreciate all the staff's work on this and the community input. I think what you've come up with here is actionable and I look forward to seeing it being implemented as we move forward.

Thank you.

All right. Any other comments? Yes.

Thank you. Yep. So I appreciate the work here. This is something I think everybody in our community will appreciate. So thank you for that. And also, it's great to have state laws that work in favor of our community. And my question, though, here is the funding. Because oftentimes we end up doing some of these really great plans and then nothing happens. They just are shelved. So feel good documents for the moment. What financial plan do we have to implement some of these or hopefully all of these action items?

Can start with that but part of the action plan is to identify the funding options whether it's through grants There's proposition for that has a lot of funding for open space, especially in some disadvantaged communities If there's city funds and then there's an action plan that has different Timelines so it could be phasing too. So part of the next steps would be to evaluate different opportunities for funding and then establish that for each of the different goals and action items and

I appreciate that yeah I mean it seems like we're gonna be looking at grants mostly because these are disadvantaged neighborhoods a lot of them that qualify for these grants I know that I've talked in the past about our park dwelling fees and how they're distributed the I appreciate the the resident who spoke about that I had proposed a more equitable distribution, so like a policy where we can have the park dwelling fees be used in proximity or at least some nexus between them and the the actual development because then you'll have especially that most of the developments are going to be concentrated in certain areas where there is a need uh can those uh park dwelling fees be used can this be something that could be revisited I'll defer to the city on the park dwelling fees

Yes process for the park dwelling fees and policy was I believe done maybe last year but I will defer to Daisy Perez on this one but this the goal of the open space and the element that we have here is just kind of setting that framework and then the action plan comes later so one of the things is the park management plan and the priorities that I believe Parks and Rec is working on so that's that's probably the most appropriate implementation avenue for for that but I will defer to Daisy on whether a prioritization was made and what is coming in the future.

Well the policy didn't pass so there wasn't but but so so there there will be something in the in the parks master plan that addresses the funding as well.

The parks master plan will prioritize the park projects. And then funding would be allocated based on that prioritization. So it will prioritize the need.

Right. Because you see, the issue is that some of these grants, in fact, all of them are very competitive. So while we're looking here and saying, yeah, there's these grants, but there's also other cities, there's 400 some city in California, all looking for these grants. And there are, you know, thousands of cities in the US going for the state grants, the federal grants. So we have to speed up that process because this is where parks end up waiting for decades because they get rejected cycle after cycle after cycle from these grants. We don't get approved. And that's why you have parks like Union Pacific Park that waited 20 years to get some money. So we have to have a mechanism that allows us to use some of our local funds. The new development coming up that was just approved, that's going to generate product AND THOSE MONEYS IF WE DEVISE A GOOD POLICY ON THIS COULD BE USED IN THOSE AREAS TO THE BASTON SHERRY PROJECT OR OTHERS. SO I THINK WE NEED TO REVISIT OUR PARK DWELLING FEE POLICY IN ORDER FOR US TO REALLY GET SOME OF THESE PROPOSALS ALONG THE WAY. hoping to do I am in favor of doing in a native tribe memorial also I think that is a decent thing to do and and then also as we're looking at not just existing parks but looking at new parks I think it's important that we start identifying parcels that potentially could be purchased for creating parks or even not just They don't have to be large parks. Sometimes you can just do parklets, neighborhood parklets where people can access. We have one on Lawrence and Truslow, the little parklet there. And I was lucky enough to be on council when it was finally approved, but the Pearl Park was one of those that took a decade, I think, because it was complicated, the real estate there. But the city ultimately bought that land and created Pearl Park in an area that really needed some sort of open space. So I hope that we can start looking actively for new properties as well as part of this. Thank you. And I don't know if there's any. I'd like to make the motion to approve this.

And I'll second that. All right.

Madam Clerk, call the roll.

Councilmember Charles aye councilmember Valencia. Aye councilmember Zara.

Aye mayor pretend Dunlap and Mayor John item passes and that most includes the resolution and the exemption with respect to seek wise

All right. Next item is the fiscal year 2025-26 budget appropriations continuing spending resolution of fiscal year 26-27 appropriations limit. I'm going to assume Interim Director Steven Avalos, you're going to make the presentation?

Thank you, Mr. Mayor. All right, sir. Tonight I have a short presentation on the continuing spending resolution and the annual appropriations limit for fiscal year 26-27. A continuing spending resolution is needed to continue municipal services and operations in fiscal year 26-27 while the fiscal year 26-27 budget deliberations take place and the operating budget is considered and approved for adoption in which the fiscal year 26-27 budget is planned to take place in July of next month. The annual appropriations limit is also presented every year With budget adoption as mandated by California state law and tonight we're seeking approval to approve the annual preparations limit for fiscal year 26 27. This slide has background on the need for a continuing spending resolution. So what this does is that it continues the fiscal year 25 26. So the current fiscal year. BUDGET APPROPRIATIONS INTO FISCAL YEAR 2627. THIS WILL ALLOW BUDGET SPENDING AUTHORITY TO CONTINUE EXISTING SERVICE LEVELS AND OPERATIONS ON JULY 1, 2026, AND THEN THEREAFTER UNTIL A BUDGET IS ADOPTED. THIS ALLOWS TEMPORARY SPENDING AUTHORITY TO SUPPORT PERSONNEL COSTS, THE CITY'S CONTRACTUAL OBLIGATIONS FOR APPROVED AGREEMENTS AND CONTRACTS, UTILITIES, maintenance and operating costs, as well as any debt services obligations until, again, the fiscal year 26-27 budget is approved and adopted. This is also consistent with our Fullerton Municipal Code, Section 2.68-070, in which Current year budget will remain in effect until the new fiscal year budget is adopted Well the while the continuing spending resolution is not required per municipal code It is the best practice for cities to approve and cities typically approve this resolution if the fiscal year 20s the new fiscal year is adopted after July 1st and THE ANNUAL APPROPRIATIONS LIMIT IS REQUIRED BY CALIFORNIA STATE LAW PURSUANT TO THE CALIFORNIA CONSTITUTION ARTICLE 13B WHICH REQUIRES LOCAL AGENCIES ANNUALLY TO ESTABLISH AN APPROPRIATIONS LIMIT. THIS IS ALSO REFERRED TO AS THE GAN LIMIT WHICH GOVERNS AND PLACES AN EXPENDITURES LIMIT THAT CAN BE USED BY CITY TAX PROCEEDS. SO THE CITY'S TAX PROCEEDS, THIS IS THE CITY'S PROPERTY TAXES. SALES TAXES AS WELL AS ANY OTHER TAXES SUCH AS TOT OR BUSINESS LICENSE. PER THE GAN LIMIT CALCULATION ALLOWED BY THE STATE, THE CITY'S APPROPRIATION LIMIT IS $305,506,936 IN WHICH THE CITY'S APPROPRIATIONS THAT IS SUBJECT TO THAT LIMITATION IS $105,252,534. So the city is in compliance and well below the limit. And this last slide is staff's recommendations is to approve the continuing spending resolution to continue the prior year budget appropriations to operate in fiscal year 26-27. In addition to approve the annual appropriations limit resolution for fiscal year 26-27.

All right, I'm director of loss. Thank you. Let's go ahead and take public comment Madam clerk have one person registered on this item Jose turn it at Castaneda and anybody else, please line up All right, very well Good evening

Good evening, Mayor and Council. My name is Jose Trinidad Castaneda. I support the proposed resolution authorizing temporary spending authority and the continuation of the prior year's budget while the budget remains under review. So this is prudent. It allows the city to continue funding essential services and meet existing obligations while you're reviewing all the updated financial information and staff recommendations. It doesn't authorize any new programs, new contracts, or new capital projects. It simply ensures continuity while the budget process is completed into July. And frankly, that's okay. Staff needs time to correct those errors and bring back a stronger budget, and we should expect accountability, but we should also respect and trust good faith efforts to get it right. In addition, it's worth noting that had council approved any of the well-intentioned program proposals without identifiable funding mechanisms in the past two years, than our actual budget today, our deficits would pale in comparison. So what concerns me most is not the accounting errors, not this budget resolution. It's how the public discussion surrounding all of this unfolded. And there's a space between stimulus and reaction. In that space lies judgment, restraint, critical thinking, and leadership. Unfortunately, much of the public discourse skipped that space entirely. And a budget discrepancy should have prompted fact-finding, transparency, and corrective action, which has unfolded in tonight's Grant and Thornton presentation earlier. And instead, over the course of the past two years, I witnessed portions of the narrative escalate into speculation, assumptions about motives, allegations of wrongdoing, and theories unsupported by evidence. The result was confusion, mistrust, and unnecessary political turmoil. Even more concerning, some of those narratives appear designed not to inform, but to amplify public anxiety, deepen distrust in local perception, in local government, and create the perception of crisis before the facts are fully understood. And that might be effective politics, but it's not effective governance. The Grant Thornton findings point us in a different direction. Their recommendations focus on stronger internal controls, improved financial reporting, a clear accountability, and stronger governance practices. Those are solutions. Those are reforms. Those are the conversations we should be having. During my time on the Winter Park City Council, very short time, I proposed establishing a finance commission after identifying inconsistencies in budget requests and asking questions about unusual accounting practices. My concern was never about accusing staff of bad intent. My concern was that as a council, we were often asked to oversee highly technical financial processes and systems without sufficient time, 72 hours notice. The public is owed more than political theater, and political disagreement is healthy. Clarity and accountability are essential. Sensationalism is not. And we deserve leaders who can tell the difference. Thank you.

Let's go and see if there's any more. Okay. Bring this back. I'll go ahead and move this item.

I have some questions.

We'll get there. And I'll second it. Very good. Go ahead, sir.

I just want the questions on during this period of time, If there are any projects that need approval will this impede any of that?

Sure The the budget that will be carried over into fiscal year 26 27 does include the city's capital improvement program again the idea behind the spending resolution is that It gives staff time to work and finalize the fiscal year 26-27 budget. We are intending to bring that before you in July at both the study session and the council meeting. And the idea is that staff could proceed with projects provided that You know, we're not You know severely, you know going over budget within the first month or quarter so No, then Yes, I'll Offer my my thoughts on that.

It's a good question So if there's any projects coming up in 26 27 after July 1 and before July 21st that we don't already have kind of contemplated you know, at that spending level with the 25-26 budget, I'll be working with staff to identify those. And if I think we need to bring them forward or just defer them until we have the proper authority in place, then that's what we'll do.

Right, because we're not, we're no longer able to authorize new spending, correct? But we're, because we're operating on the current budget, just kind of pushing it because we don't actually have a budget, a new budget.

That's my understanding as well, and that's what I would be comfortable with. So I'll talk to staff tomorrow morning at our department head meeting about anything in motion that might run into a hiccup with that.

Right. Okay. Thank you. Thank you. That was my only question.

Okay. Madam Clerk, there's a motion and a second. Let's call it.

And the motion includes both resolutions that are presented in the agenda? Indeed. Very good.

Councilmember Charles. Aye. Councilmember Valencia. Aye. Councilmember Zahra.

Aye.

Mayor Pro Tem Dunlap.

No.

And Mayor Jung.

Aye.

Item passes.

All right. We will go ahead and go to public comment right before that. Are there any councilmembers that need to remove an item from the consent calendar?

Yeah, I'm going to pull item, not quite sure if it's 10 or 11, but it's the, let's see here. Exactly. Yeah the tax-exempt bond CSC da issue.

I'll pull that one All right, let's start I have seven people registered Aaron Peral then Yolanda Harrison and Jensen Hallstrom Aaron I'm not seeing anyone get up. So Yolanda's next then Jensen and then Oliver Montecristo. I

I'm outta here. Frajong! Frajong! Empty chair, empty words, seniors screamed and they weren't heard. Frajong!

Frajong. When the wolves came hunting through, public record speaks for you.

Frajong! Frajong! When the seniors begged for mercy, when the ranch sharks smelled their fear. Frajong! Frajong! Your chair was warm but sitting empty, not a goddamn word to hear. Frajong! When the pressure started mounting When the fixed incomes ran thin Built your brand on roads and slogans That's the night you didn't clock in Tightening every screw, seniors trapped with nowhere to run. Council called and where was Freddy? Ghosting folks when work gets done. Todd was holding lines for seniors fighting battles to the bone. Funny how and help was needed. Rancho fought that war alone. Fraud junk! Fraud junk! Todd fought harder in his twilight than you managed in broad daylight. Fraud junk! Fraud junk! Some men leave a better legacy than empty chairs and stage spotlight. Fraud junk!

Fraud junk!

Tough widow has the artist's wit. Grief has sharpened every truth. Fraud junk! Better learn to fear his legacy. Fred will live on in verbal infamy.

My father-in-law would have said that if you piss off an artist, a writer, a musician, you will live on forever in the work and infamy. You're on YouTube.

That was a banger. Next comment.

Jensen Hallstrom, Oliver Montecristo, and then Jose Trinidad Castaneda.

Good evening, council and staff. I would like to... acknowledge some of the really awesome comments regarding the uh the need for recognition of the rich history of indigenous peoples in our area and i'd like to say that i think the future nature park at the former Bassentry tree farm parcels is a very appropriate place seeing that there was a substantial 1939 archeological dig that was partnered with the Fullerton High School and the college at the time, which unearthed indigenous burials. and artifacts right at the intersection of Malvern and Basinturi, just northwest of that intersection. This is called Sunny Hills site number one. And this is just a testament to this one particular creekside settlement of indigenous people historically along what is now known as Basinturi Creek. And I would just like to say that given that this is an extremely important open space in Fullerton, especially for south and southwest Fullerton, to have the opportunity to enjoy a large open space with a major ephemeral stream, which is Bassettree Creek. I'd also like to say that Following my past council comment regarding the Sequoia Memorial at Hillcrest, I had stopped by Hillcrest Park and actually saw that the restoration work had already begun by street tree revival of WCA. Very glad to see restoration work being done to caretake this historic monument. And I'd also like to further ask for there to be an agendized item regarding the future management of that memorial and also the replanting of the completely missing living war memorial of 55 Sequoia trees, one for each name on that memorial. Sequoia, Coast Redwoods, Sequoia sempervirens can be a difficult tree to grow in Southern California, but with proper irrigation design and soil management, it's entirely possible. Everybody is very familiar with the popular redwood grove in Carbon Canyon Park in Brea. That's over 200 trees. This grove would be 55 redwood trees. And there are cultivars of coast redwood, which are more heat and drought tolerant. So I'd like for this to be agendized. Thank you. Thanks, Speaker.

Hello. Good evening. My name is Oliver Montecristo and I'm a Fullerton resident. I wanted to come here tonight to congratulate not only the people of Fullerton, but Orange County as a whole on the loss of Fred Jung and his campaign for OC supervisor. It's no secret that the general consensus on Mr. Jung's leadership is that it has been callous, incompetent, and unbecoming of an elected official. He seemed to believe that he could use his mayoral seat as a launching pad. And after making a fool of himself, after his fellow council members making fools of themselves, And after thousands upon thousands of dollars wasted, it all amounted to nothing, which made it that much more embarrassing. Mr. Jung, in your State of the City address, you said, if your critics find you unworthy of praise, more often than not, it says more about their own self-worth than it does about your own. As if our objections come from some insecurity inside of us. Let me tell you, our reactions to your failure don't say anything about our self-worth. You didn't lose because we just don't understand. The truth is much simpler than that. You lost because you have shown that you are an abysmal leader. And all of Orange County knows it. And you will continue to lose so long as you hide from accountability and self-reflection. I don't say this to be cruel, but when you watch a city, a council majority, consistently ignore the people that was elected to serve, the message has to be stated plainly. We want you out. You have threatened residents with litigation. You shut people down mid-sentence. You carry yourself as though we see you as powerful, and we do not. We see ourselves at the mercy of leadership, not confident enough not to silence the people it serves. Competent, grown men don't feel the need to intimidate the people they represent, nor do they feel the need to move public comment to the end because they don't want to hear what their own people have to say. I hope that a lesson is learned from this loss, a lesson that reminds us of the importance of integrity in not only an office, but any job. A lesson that proves the people of Orange County are not backwards and don't need you to explain to them what is best for them. A lesson that shows that the issue is not that we can't see behind the curtain, but that the curtain exists in the first place. Before I go, first of all, thank you for looking at me this time. I appreciate it. I do want to say one more thing. Two weeks ago, I sat for the law school admission test. As far as how it went, it looks like I'm becoming a lawyer. Not the kind that defends corruption, but the kind that finds and exposes it. Wish me luck. Thank you.

Is Jose here? You're up next. Jose's not here. Okay, Alma Chavez and then Maria Figueroa. Then anybody who's not registered, looks like you know the drill. You're already lined up. And then we have one hand in Zoom.

Good evening Mayor Rangel and members of City Concert. My name is Alma Chavez. I was here on June 2nd to share your concern of our community workers community regarding to problem with the parkings. We need a permit System is cool help us a lot. Please how ours community and provide temporary parking permits is I Read respectful as to City Council to consider those requests and work with our community to find a solution. Thank you so much.

Thank you. One second.

One second.

Did we not

So I'm going to ask Lucinda, was there an actual action item out of the last meeting to bring back like policy options?

Well, there was a dozen people that came looking.

It wasn't an action item, but a direction was provided, no?

It's called paying attention and responding to people. I don't know that it requires formal action. So it's like people shouldn't have to sit through this to get help.

Mayor, this is.

Go ahead, Daisy.

This is something that the city engineer and the public works department are working on. Director Bice can speak to that if needed.

That's the direction for the last meeting, to give it to public works.

OK. So no, there's some confusion here. I think right now the staff believes that the options are limited, if not available at all, given current policies. So if we need to have a new policy put in place, I think I need to bring something forward to council. OK.

Why don't okay? I can't believe this is this difficult to do but all right.

Let's hear the public comment, and then I'll try and I do have some ideas which I can talk in my Common period sure yeah Good good evening Mayor Frey on and members of the City Council My name is Mireya Figueroa, and that's why we are here because we have not received any email back or any response and I understand about the ordinance the overnight parking but we are here with Chris communities here because this thing this problem has been affecting our community that's why we are here we While the city continues to review the possible solutions, we respectfully ask that you consider a temporary parking. Because we used to have that. Thank you, Mr. Amar. We used to have that for a while. But I know maybe the city needs money. Probably that's why we've been getting a lot of parkings, tickets. One of the residents, his name is Mr. Ramiro, He is a handicap. Our apartments complex doesn't have enough parking for the handicapped people. So he got eight tickets already. So that's why as a community we are here to find a solution. If you guys can please help us stop this or maybe we can change the ordinance. But I understand the like our south area, we don't have enough parking. So currently residents, we came together and we are willing to come in to help maintain the parking clean. We as a Woodcrest community, we participate on the event on Love Fullerton. We clean the park every year. So we are willing to comment to if you guys please help us give us a solution as soon as possible. This will help our community, our family. And thank you so much for your time. And please do something for our community. Thank you so much.

All right. Next speaker.

Karen, anybody else would like to speak? Now is your time to line up.

I just wanted to make a comment regarding the idea of a CFO. I think that that's a great idea. So long as we're really looking at the CFO and the economic development in a holistic way. Certainly we need economic development everything here points to that and a CFO would certainly help us a lot. One of the other things in the budget process I find our budget presentation very awkward. It's hard to follow. It's hard to really understand. And I don't like to refer to past experience. But in Dana Point, we always had every department did a report in the budget. And every department had to account for their own budget. So as either a council person or a member of the public, we could go through and see exactly what was happening in each department, and then there would be the overall budget. But it also gave everybody a chance to voice an opinion about something very specific. So I know it's a little late in the process, but if we can tidy up that budget presentation, I think you'll get better feedback. Thank you.

Next speaker.

I have two parts to my comment. One is I would like public comment moved back to the beginning of city council meetings. There's a reason that that was the case. It is so that people can have an audience with the members of their community. And I think moving it toward the end is misguided at best and cowardly at worst. The next thing I wanted to address was I wanted to ask for better security for bicycles parked at the train station. Over the weekend, one of my friends had his bike stolen from one of the bike lockers at the train station. He parks his bike there, takes the train up to work in LA, comes back down, picks up his bike. He's been running the lockers for many years. On Thursday night, he came back and found the lock was broken such that he couldn't open the door. We are worried about this because sometimes bike thieves will use this tactic. They'll break something, wait until the person goes away, tries to get help, and then in the darkness of night comes back and finishes the job. And that's exactly what happened this weekend. He couldn't get his bike out when he contacted maintenance and the police department. Actions were deferred until Monday, but his bike was stolen on Sunday. The worth of the bike is not important to this story per se. Every mode of transportation is important to every person who uses it. However, in this case, the bike was worth over $1,000, which makes this grand theft in the state of California. My friend has now lost his source of transportation and his sense of security. I don't want to blame anybody because he mentioned that staff had been very helpful to the best of their ability. However, I don't think that there was an appreciation of the gravity of the situation or an awareness that this is a common tactic that thieves use, and the situation merited more urgency than it received. What I want to suggest is a few things. Number one, that the city actually maintain the bike lockers that it puts there because these are for commuters who need this to get back home. This isn't for recreation. This is for commuting. These are people's primary sources of transportation. The bike lockers are not well maintained. There are better models out there that are not so conducive to attacks. Number two, I would like the city to name a person or department that is available for after hours urgent issues related to these lockers and to other issues regarding bicycle safety at the train station. It was very hard to find somebody overnight, and the fact that that request was deferred until Monday gave ample opportunity for the thieves to steal his bike. Their bike racks at the train station are also not well secured. Some of them have bolts missing and are very loose. And again, a common tactic that bike thieves use, they will loosen a rack in order to make it easier to remove bikes. All of these things make it harder for people to get around. They make people lose trust in their mode of transportation and then the security. They promote people driving because they feel safer doing that because at least their car is likely to be there. So I really want the city to take concrete measures as soon as possible to please improve bike security at the train station. Thank you.

Good evening. My name is Vanessa Estrella. I wasn't able to make it to the last meeting as some of our school board meetings overlap with city council meetings. But today we finished early. So I was able to make it here and I am here in support of the Woodcrest community. They reached out to me. They're having issues and they haven't heard anything from the city. So I really do want to thank them for continuing to speak up for their neighborhood parking to a lot of people seems like a simple issue, but it really isn't. Many of these families, as they've spoken to you, as they've said at the last school board meeting, are directly impacted. Their safety, accessibility, and their quality of life, as you just heard from one of the representatives here. And so I'm just here to encourage the city to work closely with the Woodcrest residents To identify practical and long-term solutions whether that means reviewing permit programs as you spoke about it earlier or Evaluating enforcement practices practices improving communication Or exploring other options. It is extremely important for that our residents have a voice in the process and that you allow them to have a voice by speaking up, whether it was at the last council meeting or at this current council meeting. And so I do hope that the city considers the impact that this is having on these working families and the long-term residents who simply want a safe and reasonable access to parking near their homes. It's important that we give them that chance to be able to be up here and speak to you. and City Council Dunlap. I'm not sure what that outburst was about when Mayor Jung asked the city city manager about this issue but that outburst you had whether you were calling people incompetent for not paying attention was out of line and really I don't know who you're referring to if you're referring to that doesn't people that are here from the woodcrest community coming to speak to you and have you listen to them which is your job that is what you're getting paid for and got elected to do but that was out of line.

Thank you so it's all address that we I know we're not Mister mayor. So my frustration was specifically the fact that these folks have to come out again. Nobody wants to come to a council meeting to address complaints. There's plenty of avenues for them to do that. And my frustration was that about a dozen people came out the last meeting. We had very specific direction that staff was to work with these folks to find a solution because not everything, you know, some folks think everything needs to come before the council. Most things don't. The reality is there's plenty of practical issues that we can work on solving problems. not at council level that was my concern my frustration was related to what we have to deal with because you're absolutely right we do donate our time fact is I've got kids at home that are on summer break I'm taking meetings with folks trying to solve problems related to this council role because it's a responsibility and my frustration is that our staff who is paid who is here is supposed to do the job is not getting it done so that's my frustration not going to apologize for anything else all right let's uh move on with uh the next comment go ahead

Good evening city council. I watch other city council meetings and there's something unique about this one and it is that a lot of other city councils they try to come to a consensus 50 vote because they recognize that each council member is from a district different district and represents different people within the city. I know that there's a lot of opinions about districts but I live in an apartment. Most people in District 5, I believe, live in an apartment. And my priorities, my needs are different than someone who lives in a suburb. This very different worldview and a very different reality of life for people who live in those two separate bubbles. BUT THIS COUNCIL HASN'T GOVERNED THAT WAY. IN FACT, THE NEEDS AND PRIORITIES OF THOSE IN SOUTH FULLERTON IN DISTRICT 5 AND IN DISTRICT 4 HAVEN'T BEEN HEATED. THEY WANTED A TRAIL AND YOU GUYS TRIED TO JEOPARDIZE A STATE GRANT. YOU GAVE DIRECTION TO EITHER GIVE THE MONEY BACK OR USE IT FOR ANOTHER PROJECT. AND THEN YOU GOT UPSET WHEN IT CAME BACK AND THEY COULDN'T FIND ANOTHER PROJECT TO USE IT FOR. People in District 5 wanted to walk on Wilshire pedestrianized space and you ignored them because one person who you think speaks for District 5 wanted to get rid of it. And he doesn't speak for District 5. Ahmad speaks for District 5 because that's who we elected. And lastly I mean we wanted a mayor. It's just a ceremonial role. You're not the executive. Eddie's the executive. You're just it's just a ceremonial role. You could have given it to someone in District 5 and you didn't. And so I think that you made a mistake, Fred, running for OC supervisor because you bet against Fullerton and you bet against the people of District 5 and District 4 and thinking that just because you have Fullerton mayor on your ballot statement that this city would vote for you, and it didn't. You came in last in District 5. You came in third in the city that you are the mayor of. You have not governed for the rest of the city. You have only governed for District 1. Lastly, just to clarify what I said to Nick earlier, it's not about your occupation or anything like that. I just think it's important for people to know. I don't think it's advertised very much that you are. You were a landlord lobbyist before you were here. The first donation that you got to your campaign when you announced in 2019 was from the Apartment Association of Orange County. And again as stated you served as president three years in a row. So all of your donations are all from landlords whether it's Richard Julian David Jerome you know all the names. That's where you get your money for it that's who you govern for. Thank you.

DIRECTOR HERSEY- Good evening Mr. Mayor council members. My name is Curtis Gamble, activist for the homeless, for our homeless veterans, Cal State Fullerton students, OCTA bus drivers, the senior citizens, and our low-income community. Recommendations. Can a Fullerton Navigation Center or the Rancho La Paz Mobile Home Park, all ages, be used as a daytime low-barrier emergency shelter between the hours of 9 a.m. and 3 p.m.? SB 4 allows all Fullerton churches to build affordable housing on their property by right. FULLETIN CHURCHES, ACCORDING TO THE HART ACT, 578.87, ON MAY 20, 2009, OUR FORMER PRESIDENT OBAMA SIGNED THE HOMELESS EMERGENCY ASSISTANCE AND RAPID TRANSITIONAL TO HOUSING hard to act into law. Churches are allowed to receive funding for affordable housing from the Orange County CoC Continuum of Care Board, $30 million of yearly funding that is provided for nonprofits and churches. Rancho La Paz Mobile Home Park is located in the city of Anaheim and Fullerton. It's located in the Anaheim SB2 Industrial By-Rite Overlay Zone for emergency shelters and recuperative care and medical respite. Rancho La Paz can also offer emergency housing, transitional housing, and permanent supportive housing units. OCTA slash OC bus drivers and the Fullerton churches should be allowed to do shelter referrals when the police department and the Hope Center are not available. The Fullerton Municipal Code reference books should be updated along with updating the online copy of the Municipal Code booklet. The OC Board of Supervisors meeting held on March 24, 2026, just approved contracts with PATH, People Assisting the Homeless, with Yale Navigation Center in Santa Ana for operations and service from July 1, 2026 to June 30, 2029 for $30 million over three years. Approved also was a contract with PATH, People Assisting the Homeless, for Bridges of Kramer's Place Homeless Shelter in Anaheim, For shelter operations and services from May the 1st 2026 to June the 30th 2029 for 15 million dollars over three over three years Mercy house is no longer the operator of the bridges of Kramer shelter of Anaheim again We need to we need to allow rental La Paz mobile home park residents to receive some of the 1 1 million dollars a year funding and housing our shelter residents from bridges of Kramer and the Yale Navigation Center Thank you for your time. Appreciate it.

Good evening council. I would like to ask if we use any pesticides in our waterways here in Fullerton. If so I would like to evaluate that and eliminate them if so. Cancer causing pesticides have been found being spread in Orange County waterways. So I would like for us to Evaluate the use and potentially eliminate them if if we are using them And second I want to thank you guys for performing the audit I think it helps the public understand what's going on with with our budget and it helps regain the trust of the public lastly regarding the parking situation I do have some suggestions for this based on my lived experience. So growing up, I lived in an apartment and it bordered a courthouse parking lot. And so our family was able to park in that parking lot until the courthouse used it in the morning. So I lived in a working class family. There were a lot of working class neighbors. So many of us, we'd wake up, our families would wake up early in the morning so we'd be gone by the time the courthouse would use the parking lot. So that's something I would recommend. That also worked in, I used to live in Irvine in an apartment. And not a lot of students have the funds to pay for parking. So you're actually allowed to park overnight as long as you were out by a certain time in the morning. And I'm not sure if it was just that neighborhood, but that worked really well. I remember I got a parking ticket one time. But most folks in working class families, they're out of there by morning time. So that's my suggestion. Thank you.

good evening city council members i'm miguel alvarez uh i live in district four and as new adus pop up in our you know for approval through planning as well as new how density housing is being constructed in the city primarily in District 4 and 5. I'd like to echo what the residents of the area are stating, not just Woodcrest families, but we're also seeing that in the Valencia Park neighborhood where we are seeing families getting ticketed for overnight policy, and that is impacting our residents in the area. Some of the things that I think we should consider and ask staff to do is to come to council with a new recommendation and looking at where are we seeing a lot of the ticketing happening and really studying what areas and from an equity perspective, primarily impacting low socioeconomic households. And what we're really showing is that there's predatory Really, it's predatory in the city that low income residents are getting ticketed at higher amounts than those on the north side of town. And so it's really important that we actually do a study that is data driven and figure out a policy that's going to be effective. So the recommendation is to agendize this item to actually look at a data driven approach that's looking at revenue coming from poor families, low income families, working families. and ensuring that you are creating a policy that is equitable and representative of the city. So I ask Councilmember Zahra from District 5, Councilmember Valencia to really, let's look at this in a partnership and try to agendize and get that data to be able to create a policy that's going to allow us to have overnight permits or an exemption for the neighborhoods and tracks that we're seeing. Lot of these tickets. Thank you.

I can just add real quick. Sorry, mr Mayor the we did do that about a year and a half ago So there's extensive data on it and maybe the chief actually did a report that Exactly kind of highlights what you're asking about. So you want to share your contact information? We can we can send that to you.

I appreciate it Okay next speaker Good evening City Council I WANT TO START WITH THE COMMENT THAT I JUST WANT TO MAKE SURE I UNDERSTAND NICHOLAS DUNLOP WHO SAID MOST THINGS THAT NEED TO BE DEALT WITH DO NOT HAVE TO COME BEFORE CITY COUNCIL. THAT'S WHAT YOU SAID, RIGHT? THANK YOU. I'M LOOKING FOR YOUR LIST OF MOST THINGS SO I DON'T BREAK YOUR RULES WHEN I COME UP HERE. BUT FOR THESE FAMILIES, who had a parking issue two weeks ago and nothing was done. I think they have every right to come up here and bring it up again no matter what your thoughts are about it and no matter who didn't do their job. They bring light to what's the problem. So if it's got to be addressed in two more weeks or next month, they're invited to come and state their claim. And you can be as frustrated as you want and you can, you know, say whatever you want, but most things do need to come before the city council or things don't get done in this city. All right, I wanted to be more positive tonight. That just threw me off what you said, but that's not the first time you said, it's the same 20 people that come and talk every night. I don't need to hear their comments. Good news, there was a ruck run on Saturday. It was a combination of the Fullerton Police Department, the Fullerton Fire Department, and our National Guard Armory in Fullerton. And over 200 National Guard men with their backpacks from units, Company Alpha and Bravo, ran the course five miles along with at least 50 of the citizens or more participating. It was pancake served at the end of the run with sausage. There were giveaways. But what was most interesting, and I want to share this with everybody, is that our police chief, John Radus, and the captain, Morris, who is in charge of those 200 people National Guard service people from Unit South in Bravo. There was a mutual respect amongst people in high positions in which there was a camaraderie and a melding together to get something done in a positive direction, and that's very nice to see. I do want to say thank you to Annie from Gretchen Thornton for her presentation. And I wanted to say thank you to Dr. Charles for reinstating the Fullerton Fire Department's accessibility report at 111 Hermosa. I wanted to thank you to our city manager, Eddie Manford, for hiring Grant Thornton. I wanted to say thank you to Nick Dunlop for bringing up the question about can we recoup or get restitution for previous audits of 22, 23, 24, when they did not find the error. And I believe the idea of a CFO, a chief financial officer, the question was asked, can we afford it? At $12.9 million lost, how can we not afford it? Have a great night. Go Titans, go Hornets, go Lancers, go Cougars.

Next speaker.

Hi. My name is Cara Saracino. I'm a born and raised Fullerton resident. I didn't intend to speak so sorry in advance if this is scattered. It's just I was here several years ago. I run a local property management business so I deal with all sorts of neighborhoods in our city. I have all residents high density, low density. And this parking ordinance just I feel like for council is like a reoccurring nightmare because it does affect people. They get ticketed. They get upset. That's money. out-of-pockets and then you have others like North Fullerton neighborhoods single-family homes they like the ordinance because they have it in their head that if we get rid of this ordinance all these people are in a park on my street and then you have like my neighborhood where I'm in a single-family neighborhood but everybody's building ADUs and then there's an exemption for that because the parking limits are different and California state law so when I was dealing with this recently with one of the streets where we were trying to get it overturned which we successfully did through the process that is here with the city where we had to pay fees and get signatures and then come and get it approved by you. Through that process talking to the representative of the city I did bring up again just with my knowledge of the new state laws is this ordinance even legal at this point with the new state laws for being able to build ADUs building on these lots with higher density lower parking requirements because I know it needs to come to vote to I think officially get rid of it. And again I didn't come prepared so I'm a little bit ignorant of the process here but I'm just concerned again on the city level is this legal is affecting certain neighborhoods higher than others. I understand the concerns on both sides. So just wanted to bring that up because ultimately when I had that conversation it concerned me as a citizen that if again I'm not an attorney but if someone chose to bring this up in a legal way I mean do we is this ordinance even legal at this point. So I just wanted to make that point tonight. I don't know where it goes from here but just something to consider because again I deal with this too. I get residents that complain consistently. They're in high density neighborhoods. I manage property on Topaz. You can't find parking any time of the day there. Like people just, their cars live there. So that's really problematic for me as someone that manages property. And I'm trying to get people to live in my property because these were built in the 60s with one single car garage. Like there's just no parking. So it's a real problem. Again, I get it from both sides. It's just, how are we going to figure this out to where people don't have to waste their time coming here and help? don't have to waste their time ticketing people. And I get the financial aspect, but it just needs to be figured out. So thank you.

We have two hands in Zoom. Jane Riper, you can unmute.

Jane. Hello again. Thank you. I wanted to, I don't know what the protocol is for pulling consent items anymore. We used to be able to come and ask if they could be pulled. I know that's a little different. So if I'm interested in the local hazard mitigation plan, I think a couple of things, important things were left off that affects local safety. Should I mention those now or can that item be pulled tonight?

That item will not be pulled. Only item number 10 is being pulled by the mayor pro tem, Jane.

So we can no longer, the public can't ask for things to be pulled during public comment anymore, I guess? We have to do that in advance.

You can comment right now on that item if you wish.

Okay. All right. So there are, there's a, on page 89 of the document, there are several dams and reservoirs listed, but there are about six of them that are missing that I think should be on the list because they do affect Fullerton. Even if they're not in Fullerton, they... would inundate in our area. One is actually in Fullerton. It's called the Brea Saddle Dike Dam. It's small, but in poor weather can overflow and has. There's also in Brea, there's the 30 million gallon central reservoir. There is also... Placentia, this is just outside the city, Placentia Retarding Basin, Lakeside Lake, Ralph Clark Park Lake is left out, I believe. Last time I checked. Raymond Basin and also Humboldt Reservoir, all of these affect Fullerton if they overflow in emergency situations, which is exactly the point of the mitigation plan. So I think those should be included. Also, Prado Dam was rated, the rating, the urgency uh risk went up somewhat recently um after spillway problems were discovered and they were planning on rebuilding the spillway higher to address those but i haven't heard whether that project has been completed and when i called during an atmospheric storm situation some years ago, I was pretty shocked that no one at the city was familiar. No one who was available at the city was familiar with this, and we were in the condition where it was reaching up above the spillway area. So I would sleep better at night knowing that the updates were being addressed and that we had a new review of What's going on with the Prado Dam? Has that now been fixed? And what are the remaining concerns? Because events happen and we don't want to be unnecessarily at risk. And I certainly would like to know, you know, to get a report on that every once in a while of what's going on rather than just leaving this to the dam operators. We should have a local response. Lastly, I'll just say that, of course, with the recent events in Garden Grove, there should be some renewed

look into that and if this item could be pulled to discuss these items that would be great all right uh next comment madam clerk ilsa you should be able to unmute go ahead ilsa doesn't look like she has a microphone connected so that's it

All right. Very good. Again, the mayor pro tem has pulled item number 10. Seek a motion to move the balance.

Yeah, I'll move the balance.

Is there a second? Second. Madam Clerk, please call the roll.

I'm sorry, that was Dunlop and Zahra? Yes. Motion and second? Yeah, I can't do three things at once. Okay. Council Member Charles? Aye. Council Member Valencia? Aye. Council Member Zahra?

Aye.

Mayor Pro Tem Dunlop?

Aye.

Mayor Jung?

Aye.

And I do have to read one more title very quickly. This is for item... 7 the ordinance 3 3 5 8 and ordinance of the City Council of the City of Fullerton, California adding Fullerton Municipal Code section 2 0 2 0 2 0 to require electronic and paperless filing for Fair Political Practices Commission FPPC campaign disclosure statements All right.

Thank you for that and Mr. Mayor Pro Tem item number 10 sir.

Yeah, I mean look this is um, I'll try to be brief and concise here So we've got item 10 is issuance of tax-exempt bonds by the California Statewide Community Development Authority for UCA and UCE apartments. I was a little surprised to see this on the consent calendar. We've actually addressed similar items in recent years. They've gotten rejected each time. So to see this on the consent calendar, issuing over $180 million in bonds to finance or refinance two apartment acquisitions for a private real estate company was concerning to me. And I think you know there's a few items that are missing from this agenda report But notably and this was the big thing that we I think you know some of us got hung up on last time the fact that The one we're essentially joining this joint power authority or joint power agreement You know that would then allow these bonds to be issued through the CSC da but also There is there's a financial impact of the city And considering our current financial circumstances, I don't know. Certainly, I don't have an appetite to support something like this. And I think this report doesn't really reflect the true financial impact to the city as it's listed. I mean, this is essentially indicating that, hey, we're going to allow these bonds to be issued. And so we'd like to get some clarification there.

Why don't we do this, Mr. Mayor Pro Tem? Excuse the interruption. Why don't we continue this? have staff bring something more robust, and then as an actual item, have you have a comment?

Yes, Mayor, I believe the representative is here as well, Noah Mayer, I'm not sure if he's remote or, oh, there he is. In terms of the item itself, this is as part of the Tax Equity and Fiscal Responsibility Act, and it's a requirement of their request, which is Foothill Affordable Housing Foundation who will be acquiring both of these sites and for local authority, which would be the council, to approve this. As far as the fiscal component of this, we, as this is provided, oops, sorry, give me a second. We take on no debt and no financial liability. The developer repays the bonds entirely. What council is asked to do tonight is provide the federally required local approval that allows the bonds to be tax exempt. This financing is what makes that affordability work. As far as we're concerned and why we would support this on a, you know, generality for the non-exempt is that it still supports our affordable housing objectives in the city and we're trying to the longevity of what is there now. And so that is the overall purpose of it.

Trust me. I mean, all due respect, sir, I know this issue probably as good as the applicant. And the reality is, we've dealt with this before, essentially this is not doing anything to create new affordable housing. This is not doing anything to preserve affordable housing. This is essentially using a financing mechanism to allow someone to acquire and overpay for an apartment complex is what it's allowing someone to do. And the fact of the matter is, you know, and I think, and that's where again, too, we, I do think, look at our, out of respect, you know, to this person who's, who's obviously spent some money, you know, I don't know. I mean, this is, this is really not a, not a good staff report that we got four pieces of paper, you know, the, the, you know, the last time we were looking at this, they asked for there's, cause we're basically taking properties off of the tax roll because there's a property tax exemption that was at least under the last one was afforded to the, to the applicant. So it's taken tax revenue away from the city. Um, Those things all need to be accounted for as well. And so again, I just think something like this Just given the history. I mean it was always it was presented the last time it came before us several years ago So I think anything like this I think it's just bad form You know to not put on you know for a public hearing director Thomas.

I'm gonna I'm gonna ask that You know, I'll move to continue it. We had a public comment earlier about trying to get to a 5-0 Let's not make this decision this evening. Let's get some more info Does that affect the applicant?

That was my question. I would request, since the applicant has been waiting patiently throughout the meeting, that he be able to provide more details regarding their request, as all of these requests are not similar all the time. So I would ask counsel to allow him to present.

No, the applicant is welcome to make comment, but I certainly would advise him not to talk us out of it. You really want a denial now? For me, I think it's better off that... Well, I'm not sure there would be a denial now.

This is in my district. Again, again... We're being told it has no fiscal impact of the city.

I heard Director Thomas as well. All right. Sir, go ahead.

Hi, Council and Mr. Mayor. My name is Noah Mayer. I'm here representing the Foothill Affordable Housing Foundation, the applicant. If you guys want to put this on an agenda item and move to another date, that would be something... that we could handle. I'm happy to talk a little bit about the project right now and that's assuming that that's going to be within the next couple of weeks maybe even the next one is the next meeting.

Our next meeting is mid July and we'll we'll we'll make it for a date certain there sir.

That's a little bit further away. 21st. Okay that's a little bit. I thought it was every two weeks.

We there's no meeting in July 4th.

Got it. Got it. Well if that's what the mayor wants I'm not here to to to to fight you on that I will provide more information right now if anybody wants to hear it.

Is first among equals it's it's what you say is first among equals he doesn't necessarily control the agenda. All the time so the question is is I mean what what is your response to that you are saying that that did mayor pro tem done laps assertion that this would have a fiscal impact on the city.

I wasn't sure exactly what he was referring to. The property would be taken off the tax roll, but we also will be setting aside the units at this property to support very low and low income earners of your community. So we absolutely will be preserving the affordability of certain units that are there, but also creating the rest of the property to become affordable.

And it is an incentive arm that the state gives as a result of that affordability. Anyway, do you have a motion? Is there a second?

It sounds like you guys have it.

Does it increase affordable housing then is what you're saying?

It does. We will be reserving 40% of the units for residents making 60% AMI and the remaining 60 will be for residents at 80% AMI or lower.

I would like to move this item. I'd make a motion to move this item forward tonight to approve the resolution. We'd have to do public comment, yes. Thank you.

Okay. You're okay with the continuance, right? I just want to keep that in my mind. Not until July 21st. And you're okay with July 21st, yeah?

I second the continuance. Does that matter?

Not right now. I have no idea.

It's okay.

Okay. Go ahead and answer, sir.

I guess whatever the council deems to be the right thing, I support. I mean, if we can get it passed tonight, obviously that would be best for us and best for the community.

All right. Very good. Okay. Madam Clerk, let's take some public comments on this. Anybody? OK. Good evening.

Good evening. When Ms. Thomas says that there's no cost to the city, and the gentleman here says there's going to be affordable housing at 60%, 80%, 40% of the units, I have to take them at their word. It's time to move this thing forward. Why do we keep bringing things back over and over and over? I mean, it's just so simple to vote, and I support moving this forward. All right. Anyone on Zoom?

No.

Okay.

Go ahead. Good evening, Mr. Mayor, City Council. I'd just like to say I support this item. I think that... We should approve it tonight. If you needed more time, you should have done it earlier. And all you have to do is just kind of read through things. You can even talk to AI about different things. You shouldn't have to waste so much time on different projects. So I really would appreciate, especially when it comes down to any type of housing or opportunities and things like that, that we take advantage of them and don't wait. We've waited long enough. When opportunities come, I want people to know if they come to the city council meeting, that we're going to hop on it and take advantage of it because we've done enough waiting. So would you please approve this tonight for that young man? Thank you.

Thank you. All right. You've got a motion. Is there a second? I don't have a second, so I have a question. I'll second them. All right.

So the last thing I'll say, I just want to point out for the record, this isn't actually creating any new affordable housing. It's preserving existing housing units. We don't get any additional due credits for it, not to mention, you know, this idea that somehow, you know, renters earning 80% of the area median income, that's essentially workforce housing market rate. There's no, you know, this is basically, I mean, what this is is really a disgrace to people that own and operate rental properties throughout the city that are doing that ordinarily without any kind of subsidy or benefit. And so I think it's playing favorites. I think it's a bad policy, especially looking at our deficit situation. I want to also point out, this has nothing to do, I know that the city is not involved financially in the bonds. That's not the issue. The issue is the reduction in property tax revenue for all of the services that are still provided for the city. So I've said my piece.

All right. So there's a motion. There's a second by councilman.

Excuse me one second, please. Excuse me. Thank you. All right.

So I'll make a substitute motion to continue this to the next council meeting.

I'll second that motion.

All right, let's vote to substitute.

I would like to have more discussion. I just don't want you to call a vote just yet. And I understand we're voting on the continuance, and that's fine. I get it. Substitute motion, great. That's totally fine. And we'll vote on that. I understand. I just have a couple of clarification questions, because I do think this is important just to know for tonight. Does it count? Because the mayor pro tem said something really interesting, and maybe we'll get more into it when we talk about it later. But would this increase affordable housing for our housing element? Do we have that answer? Will that count?

They'll be increasing the affordability for this property. There are a few things that Councilmember Dunlap did bring up that I'd like to go back and take a look into. But in terms of what they're proposing, that is why they're requesting a higher amount.

OK, so thank you for clarifying. And I will say that I will support the continuance, knowing that my fellow councilmembers will be open to hearing about the affordable housing that we could be increasing with this development, OK?

Certainly open to it. All right, Madam Clerk. Please call the roll.

OK, this is a substitute motion for the continuance. Council Member Charles.

Until a specific date? Next meeting, sir.

Thank you. July 21. I'll add that to the motion. Council Member Charles.

Aye.

Council Member Valencia. Aye. Council Member Zahra.

Aye.

Mayor Porton-Dunlap. And Mayor Jones.

Aye.

Item passes 5-0.

All right. We will get to council reports but Mr. City Manager We got to figure out the woodcrest parking situation what I would encourage you to do is set up a meeting with the obvious community leaders here and your staff and You know chief I just I'd pop my head into that meeting and let's see if we can come to some sort of consensus on this if we have to ask and request a Participation and partnership with the school district perhaps. There's an opportunity to park in In or on there the the property of the school district as well. All right, mr. May I just one second sir one second It's on that particular topic that you can during your council comments, please address it again. I'm just throwing things out there for now Last but not least there was a Person that made a comment about the bike lockers Who oversees that just just so I know is that us the city or is that OCTA that Metrolink?

It's referred to director Bison that Yeah, that's us let's see That's all all right.

Let's go to council comments Go ahead. All right. Thank you

On the the woodcrest I know what we had when we did the exempt the parking permit exemptions. It was to allow for additional parking options for the public, especially in areas where the there is an overnight back. One of the concerns I had then was that this particular area there isn't adequate parking. There's not enough parking. So it wasn't an issue of the overnight ban. And the problem with the permit program, is there? OK, because I was hearing that as well. OK. THE ISSUE THAT WE HAD WITH THAT THE ISSUE THAT WE HAD WITH THAT PARKING PROGRAM, THE PERMIT PARKING PROGRAM, THE PERMIT PROGRAM IS THAT IT WAS ONLY FOR PROGRAM IS THAT IT WAS ONLY FOR PEOPLE CLOSE TO THEIR HOMES. PEOPLE CLOSE TO THEIR HOMES. SO ONE OF THE SUGGESTIONS I'D SO ONE OF THE SUGGESTIONS I'D LIKE TO DO IS BRING BACK THAT and agendize it again. Maybe I can get a second for that. To get an update on it again. I know we had an update last year. Maybe we can get another update. But also to look at a different model. So maybe creating a zone where people can park. Because across the street, there's actually plenty of parking. And there is just that under the current program, they can't park there.

I'm happy to support it. Can you clarify for the staff so they have some idea what you're talking about in terms of update?

Well, an update on the program, how successful it has been and how many permits and so on. I think we've done that update before. And I've spoken to Director Bice about this many times, so I think he understands what I'm saying. But that particular area, I think maybe we can create certain zones where we're looking at expanded areas. There's also another option for that particular area, if this doesn't work out, is looking at the parking lot next to it, the Target parking lot. I live there, so it's very open at night. Maybe we can approach the property owners there and see if they can designate a few parking spots for us at the back under a certain permit that we can maybe look at with them. And then I'd like to also ask for a review of the parking tickets right now and see if we can suspend those until this item comes back for a review. So at least give some relief for that neighborhood.

Understood. It's not an agendized item. I don't know that we can actually suspend the tenants. I'm giving direction. No, I understand. And I'm asking if we can. I'm supportive of what you're saying. I'm just saying that I don't think we can do that.

And this is something we have done before in the past. So I don't think, well, we can't do it again. just for that particular street. And then finally on that one, the park itself has some designated areas that I think that's where they're getting the tickets. It's the actual park section of that little street in front of Palm Gardens. So that's where they're getting the tickets because they're parking there. So maybe we can also look at exempting that area and allowing it for, because I think it's after a certain time it becomes no parking. So maybe we can just give that little cul-de-sac there an exemption and remove that time limit. So those are some of the options there, but I'd like that whole ordinance to come back for a review and an update. So that's one thing. The other issue On the bike racks, definitely I'd love to see those. That's a problem solved. Maybe there could be some cameras placed. I don't know if that's going to be a solution, but hopefully we can look into that. And I want to talk about the economic plan a little bit. We have I think I've agendized it twice, an economic business and development plan. I've agendized it formally two times over the last several years, and it never came back to council. I'd like to prioritize that. I'd like to do it one more time, agendize it one more time formally, if I can get a second for that. It's an economic development plan. We started with it, and it never came back. I'd like to see that as a priority. And I'm not going to give a timeline, but within maybe 90 days to come back.

That's tight. That's our budgetary time right now, I think. I'll second.

Thank you. OK. Did you want to say something?

Yeah, just to clarify what you mean by that. So the council, we are fully aware and it is on our action plan to create an economic development strategic plan. The strategic plan takes about, it can take 12 to 18 months, depending shorter. We have one person in that department. Also, we can utilize staff in other divisions as well, but with competing large policy documents similar to the open space, previously the housing element, And we have a couple of other things that are coming down. It's more about the resources. I would like to bring it back as what that time frame would be and what the cost would be. The $50,000 that was originally allocated is not sufficient to assist with that.

Let's bring that and have that discussed.

Let's just dust off the cobwebs and show us what we got. Exactly. Let's bring it to council. Nobody's asking to start over.

Yeah, bring what we have. Let's get an update within whatever time. YOU CAN OVER THE NEXT COUPLE OF MONTHS. BUT WE NEED TO KNOW WHERE WE ARE WITH THIS IF THERE'S ANY ACTION THAT WE NEED. IF YOU LACK STAFFING LET'S LOOK AT THAT. BUT I THINK BECAUSE THAT WHEN I TALKED TO YOU LAST TIME WAS LIKE MAYBE A YEAR AGO AND BEFORE THAT ANOTHER YEAR AGO. SO IT'S BEEN TWO YEARS WITH THE SAME REASONS. SO LET'S JUST BRING IT AND GET IT DONE.

SURE. WE'RE HAPPY TO BRING IT BACK.

AND THEN THE LAST LET'S SEE HERE. I'd like to see also a little quick update for us at the city council. This should not be a big issue, but to maybe bring back a little update on the memorial at Hillcrest Park, the war memorial, just so that the public can see what is being done and if there's any more input from the public and from council to see how we can maintain that. and look at the tree situation there. So maybe Director Bice can bring that to council at some point. And then finally, I'd like to also agendize another item to be brought back, which is creating a lobbyist registry in the city. Other cities have those, the city of Anaheim, LA, San Francisco, other cities have looked into those. There are some really great ordinances There are lobbyists and consultants that are paid to do business on behalf of their clients. They meet with council members. They meet with staff. And they have a lot of activity behind the scenes, and nobody really knows about them. And I think it's important for transparency and rebuilding trust in our community, again, as we're trying now to create all these new initiatives to rebuild trust. I think this is one of those. I'd like us to look at the model of the city of Anaheim because it's a comparable city. It's close by city. But also to see if we can add to it some stronger enforcement components to it because it lacked that. So maybe looking at the model of the city of LA and San Francisco, which are the larger cities, to see what we can combine from all of these and come up with something that is reasonable for us. So if I can get a second on that.

Yeah, I'll second that. Do you have a date certainty you're thinking of?

Actually, if I could interrupt very quickly, there is some legislation right now discussing lobbying issues and potentially a registration. If we could do it after... September 30th and we'll see where that bill lands. We can add that information what we give to you I'd like it to come back before that.

I mean my time is limited on this council So I'd like it to be brought before that if the if state laws change great If not, they'll override us if not that we'll have something in place. So let's bring this back sooner rather than later however, the our legal team and City Manager can do it maybe over the next 90 days maybe But there are plenty of models out there, so it shouldn't really be that complicated to implement. Thank you.

If I could please get some clarification. I didn't want to interrupt you. It seemed like I got direction of some sort to pause enforcement, and if that's the case, I'd like specific direction on what streets you do not want me to enforce.

It's right in front of the Palm Gardens. It's exempt there. That's what I was asking the director. On the park area. So as it goes inside, does the park.

In the park parking lot?

Yeah, the park parking lot.

Okay. So I just want to make sure I'm clear. You're asking for no enforcement on the Orange Thorpe Minor Street west of Palm Gardens Apartments, correct? Correct.

That leads to the park. Yeah, that little parklet of Woodcrest Park.

Okay. Yeah. If I could ask just the city attorney, is that something we can actually do?

No.

Oh, we can't do that. Okay.

Well then in that case, we have to agendize it. Now the chief wants on his own exercise. Okay.

But in that exercise, that's a very slippery slope for me. Yeah. All right.

So that's why I'm asking for specific in that case. That's fine. Then let's bring these items back and, but maybe we can bring that parklet exemption and maybe remove that quick. That's a, that should be an easy one to do.

Yeah. I mean, and seriously kind of to that point, help these folks. I mean, that's, That was my comment and my frustration. I mean, to have to come out again and again, yeah, of course, it's great you're speaking up, but you shouldn't have to. This should have been addressed for you, and that's my point. So my frustration was certainly not directed to the speakers. It's the fact that, hey, we're here dealing with the same thing again. We provided direction the last time. So before I hand the mic over, I do have a few comments myself. First, had the opportunity to attend and celebrate the ribbon cutting at the new pickleball courts up at the Fullerton Tennis Center. So I feel bad for the earlier speaker who apparently took two losses this week with the pickleball courts and also the project getting approved. But having said that, it was actually a great event. I think one of the things I would encourage you all to check out, if you get a chance, the staff really did a great job on the courts. I think one of the interesting things is pickleball is one of the few sports where you could have college athletes and 70-year-olds that play five days a week and it's like an even playing field. So it's a great time and I would encourage you all to get up there and check it out. There's a few community events I'd like to plug that are coming up as well. Obviously, for those of you that know, this Sunday is Day of Music. So there's going to be dozens, if not hundreds, of concerts and performances across the city. You could go to Black Hole Records. You can go to the Museum Center. You can go to the Fox. Any number of places around town, you should go online. You should Google Fullerton Day of Music and make sure that you're tuned in. There's going to be lots of great acts. And so I would encourage you all to check it out. It's always a great day. And it coincides with Father's Day this year. So that'll be nice for those that want to celebrate. Also, another musical plug, August 1st at Fullerton Museum Center is Leo Fender Day, and they've got a couple great acts lined up as well. So we'll encourage you all to be there to celebrate Leo's legacy here in Fullerton. And again, they're going to have some great acts and great musicians there as well. So those are my comments for tonight, and I'll hand it over to Council Member Valencia.

Thank you so much, Mayor Pro Tem. I just wanted to let everybody know, if you haven't seen on social media through the city's website, that we are having a World Cup, I can't say the right words, but viewing of the games. For infringement rights, we can't say certain words. Anywho, that's why it's called Los Angeles Stadium. I don't know if you've noticed or picked up on that. We can't use major trademarks. So we'll start at 9 in the morning. They'll have some events. Then the first game's at 11. Or at 11 to 8, it goes till. So the first game's Switzerland and Bosnia. Then it goes Canada and Qatar and Mexico and Korea is at the night at 6 PM. So please come. Yes, Walk on Wilshire will be closed for driving. And Citi has done that graciously. We have trucks. We have vendors, all the businesses have been involved. It's been a great team effort for the whole city staff. So please come and support. And then on the other side will be the farmer's market. So thank you. Okay. I'm batting cleanup.

All right. So thank you for mentioning those events. Definitely. I'm a little bleary eyed from last night's world cup game. I was able to go out to LA stadium to actually see it in person. It was really exciting. Go. New Zealand. Um, so I'll, I'll keep this short cause I'm last, uh, but I do want to say happy pride month and happy Alzheimer's awareness month. Um, for those of you who are paying attention to that topic, it's a very important one. So please take care of your mental health and those of your family. I want to thank everybody that was involved in putting on an incredible pride celebration a week and a half ago. It really was amazing. And just a wonderful event. And also, I understand the airport days was also wonderful. So I congratulate staff on that. I'm looking forward to the day of music and the other events as well. And happy Father's Day to all the dads. The one thing I would like to say about the bike issue, and I don't know if Dr. Tapadia is still here. It is getting pretty late. she wouldn't have to come to council and do that if we didn't keep canceling our ATC meetings. I noticed that the next one has also been canceled for active transportation committee, which was supposed to be tomorrow. Um, this is exactly what should be on the agenda. And you know, the, the issues that she brings up, it's something like the bike lockers at union state, you know, at our station, um, you know, going, that can go up to, you know, union station LAX and can go through to the entire rest of the system. Now, you know, with the way the LA Metro is built and with OCTA, I mean, That is exactly what the ATC should be talking about and should be on their agenda. And I just want to encourage staff to work with the commissioners on the agenda. And a quorum is going to be present. But even if not, from my time on the infrastructure, I'm sorry, not the infrastructure, it is late, the investment committee, that when we didn't have a quorum, it was still a really informative conversation with staff. And so please do not cancel those meetings any longer and hold the committee meeting that is supposed to be talking about these kind of things. there, and that would be great. And I just want to also announce, just for those of you who come to my office hours, thank you so much. They've been very busy lately, and I appreciate all of the interest. They're usually in City Hall Thursday to 12 to 2. Also, at the end of the month, the last Thursday, I'm always out in the community. And for this month, I will be out at the Hunt Branch Library talking to folks at the dog park from Thursday 12 to 2 on that last Thursday. Also, we will not be meeting really before then, although we are having our study session about the waste proposal on the 30th. But I would like to also wish everybody a happy 4th and hope that you will be coming out to our fireworks celebration as well. Thank you.

All right. With no other business before the council, we're adjourned.