City Council - Regular Meeting
About this meeting
- Government Body
- City Council
- Meeting Type
- City Council
- Location
- Irvine, CA
- Meeting Date
- May 12, 2026
Transcript
928 sections (from 1,073 segments)
Please come to order. This is the 05/12/2026 adjourned regular meeting and joint special meeting with the Irvine facilities financing authority. The time is 05:08PM. And at this time, I'm going to ask the clerk to please call the roll.
Councilmember Carroll. Here. Councilmember Go. Here. Councilmember Liu. Here. Councilmember Martinez Franco. Here. Councilmember Trusieder. Here. Vice Mayor Mai. Here. And Mayor Agram. Here.
At this time, I'm going to turn to our city clerk, Mr. Carl Peterson, and ask you, Mr. Peterson, to please explain to the public, both those gathered here and those who may be watching the proceedings remotely, how they can participate in today's meeting.
Thank you, mayor. Members of our audience who wish to speak may submit their name into one of the speaker kiosks next to the city clerk or in the main lobby. We also offer the ability to provide live comments via Zoom and submit written comments through our e comment system. For those who wish to participate virtually, visit zoom.us using any web browser or the Zoom app on smartphones or tablets and enter meeting ID 844. The passcode is 272906.
You may also dial in by calling (669) 254-5252 or (669) 216-1590 and entering the same meeting ID and passcode. Those who wish to provide comments via Zoom are asked to enter the speaker queue by raising their hand electronically. The city clerk will call your name and allow you to unmute your microphone at the appropriate time. Those dialing in by telephone will be identified by the last three digits of their telephone number. We ask that you please state your name for the record.
The time limits per speaker are noted in the posted agenda and are established based on the number of requests submitted. All requests submitted after the first speaker is called shall receive ninety seconds. Those who wish to provide written comments may do so by clicking e comment on our new city council meeting agenda webpage at cityofrevine.gov/agendas. All comments will be provided to the city council as part of the meeting record and will be uploaded to the city's website. For technical assistance with Zoom before or during the meeting, please call (949) 724-6078.
For any other questions or assistance, please contact the city clerk's office at (949) 724-6205 or via email at clerkcityofirvine dot org. Thank you, mayor.
Thank you, mister Peterson. This time, in a moment, I'm going to ask the audience to rise and join us in the Pledge of Allegiance, which will be followed by a moment of silence, which I'll introduce after the pledge. And then after that moment of silence, we'll have an appropriate invocation tonight. So with that, I'll turn now to council member Melinda Liu, who will lead us in the pledge this afternoon and evening. Please rise if you're able.
I pledge allegiance to the flag
of The United States Of America and to the republic for which it stands, One nation under God, indivisible, with
liberty and justice for all. Please remain standing if you would. We're going to, have a moment of silence, tonight, in remembrance of, Irvine resident George Lou, who is a father of congressman Ted Liu, who represents a congressional district just a little bit north of Irvine. Mister Liu immigrated to The United States in 1970. He earned a law degree from Sichao University in Taiwan and a master of laws degree at Cleveland State University College of Law in 1971.
Mister Liu, set aside his own plans to become a lawyer and a writer to provide for his family and give his sons opportunities to succeed. He and his wife, Carrie, opened a gift store, and through hard work, they expanded that enterprise to seven stores across multiple states. Mister Lou, eventually realized his dream of being an author, writing three books of poetry between 2004 and 2026. He and his wife were longtime residents here in
Irvine. Mister Lu was known for his wonderful sense of humor and vibrant spirit. He touched the lives of many here in Irvine and elsewhere before his recent passing. Our condolences, of course, go out to his friends and family, his, neighbors, as well as
Congressman Liu and those in his office, whom mister Liu was, so supportive of as well. So now if you would just, please join me in a brief, moment of silence for George Liu. Thank you. Please be seated. Tonight's invocation will once again come to us in the form of a musical presentation.
At this time, it's my pleasure to introduce and call forward Shaya Kallili, a junior from University High School who participates in the marching symphonic and jazz bands. Welcome. Though he well, let me just say this, that Shaiyaz, I'm informed, has been playing the alto saxophone for about four years now. Though he plays both jazz and classical music, his deep admiration for jazz is how he likes to express himself musically. And playing the saxophone has significantly helped inspire that passion.
As part of tonight's invocation, Shaya will be performing two pieces for us. The first is an excerpt from Saxophone Concerto in E flat Major by Alexander Glasanov, followed by the jazz standard Misty by Errol Garner. So thank you, Shaya, for joining us this evening. We want to give you a round of applause and a warm welcome. Alright?
Hold on here. There we are. We're gonna take a photograph at this time. You're gonna be the center of it. We're going to stand behind you here, and we're going to give you a big round of applause thanking you once again for being here.
Thanks so much. Please, everyone else stand. Thank you, Shaya, and we wish you all the best. Thank you so much. At this time, we move on to presentations this evening.
Item 1.1 is a presentation. I'm going to ask the city clerk to identify this presentation by title and subject, if you would. Mr. Peterson.
Thank you, mayor. Our presentation today is to ratify and proclaim 04/24/2026 as Armenian Genocide Remembrance Day.
Thank you. Our presentation this evening is a proclamation recognizing 04/24/2026 as Armenian Genocide Remembrance Day. This has been agendized at the request of council member Melinda Lou. Before we proceed with the presentation, would like to invite those who are participating via Zoom to raise their hand electronically if they would like to be a speaker and comment on this item at this time. Mr.
Peterson, are there any members of the public who wish to speak on presentation item 1.1?
Thank you, Mayor. We do have one request via Zoom.
All right. Why don't we close the queue and recognize that speaker who will be given three minutes. Is that correct?
Correct.
Very well. Go right ahead.
Thank you, mayor. Our speaker is Eric Nashanian. Mr. Nashanian, you may unmute your mic.
Thank you, Mayor Agram, council members. First, I want to let everybody know that the Great Park is upside down and doesn't have the money to implement the framework as of right now, so that any pledging of land for the Armenian Genocide memorial is illusory. This is slide number one. On 04/04/2017, Mayor Wagner declined to recognize Turkish Heritage and Children's Day on April 23 until staff met with the stakeholders and found another date that was suitable and that would not offend the Armenian community. Next slide.
On December 24, the OCTAA, an organization that promotes genocide denial here in Irvine and hangs Ataturk, an architect of the Armenian genocide at schools, parks, sanctioned events here in Irvine, congratulated Mayor Egan on his election as mayor. And you can find that by searching OCTAA and Mayor Lader Egren, congratulations. Next slide. In December 2025, this is former Mayor Stephen Choi, recognizing known Armenian Genocide denier Ergun Kirlik Kavali. Mr.
Kurlik Kavali was brought up in these chambers, and his involvement with Farah Khan caused much controversy in 2022. Next slide. Here, you can see that in early 'twenty two, Mayor Khan had to remove Kirlikovale. This is actually her promoting her advisory committee. And not only is Kirlikovale here, but there's also Erkan Demiracci, who was the president of the OCTAA beneath the circle where I circled it.
No one disputes that the OCTAA promotes genocide denial or hangs at the events that I indicated. Next slide. On 04/23/2026, Mayor Egren gave the OCTAA a certificate recognizing April 23 as Turkish Heritage and Children's Day. There was never a discussion amongst the stakeholders with staff about another date. Mayor Shay and Mayor Khan proceeded to fall back on the April 23 date until the Armenian community once again spoke up for themselves.
Next slide. It's enough with the recognition and the proclamations and the promises. If you're a a fan of the you know, this needs to stop. Local Armenian American community does not need proclamations or pledges of land that are rec tributes recognizing the genocide of their ancestors from Irvine representatives. This does not solve the underlying problem. There are genocide deniers in Irvine, and the city appears to continue to promote that. The city and its representatives need to censure its own, like mayors Egren, Thanh, and Choi to promote or bolster Turkish national genocide deniers and their related organizations like the OCTAA.
Thank you. Your time is up. And mayor, I apologize. There is one person who requested to speak in person, if I may call them forward.
Yes. Why don't you call that person? And that will be our final speaker. Is that correct? Correct. All right.
Thank you, Mayor. Jason Garfield.
Welcome. Welcome, sir.
Thank you. Apologies for the mix up. I just wanted to lend my voice such for whatever worth that may be to this proclamation. I think it's, you know, we Jews have talked about the Holocaust quite a lot. The Armenian Genocide does deserve as much recognition in part because it was the historical prototype for the Holocaust.
I think it is a disgrace that a great many nations out of cowardly appeasement to Turkey have failed to recognize it. And I also think that it's a disgrace that Farrakhan, who sat up right in the middle for four years, made some pretty offensive jokes about the Armenian genocide and received no official censure and no great condemnation for doing so. So, that's all I have to say about that. Thank you.
And that is all, Mayor.
Thank you for those comments. With that, I'll move to ratify and approve the proclamation recognizing 04/24/2026 as Armenian Genocide Remembrance Day. Is there second? Second. That's seconded by council member Lu. Would the clerk please call the roll?
Council member Carol? Yes. Council member Go? Yes. Council member Lu?
Yes.
Council Member Martinez Franco?
Yes.
Council Member Trusieder?
Yes.
Vice Mayor Mai? Yes. And Mayor Egren? Yes. Carries seven zero.
Thank you. And at this time, I'll turn to Council Member Lu to invite forward our special guests this evening and to present the proclamation. Councilmember Lu.
Thank you, mayor. Good evening. Tonight, I'm honored to present this proclamation recognizing Armenian Genocide Remembrance Day. This proclamation commemorates the lives lost during the Armenian Genocide from 1915 to 1923 and reaffirms our commitment to remembering this tragedy and standing against hatred and intolerance in all forms. I would also like to recognize and welcome members of the Orange County Armenian Genocide Memorial Committee and community leaders joining us this evening.
Doctor. I mean, Kev Abijan, Hacob Bedolian, and Gavark Martirosian. I'm sorry if I'm not reading it correctly. Please welcome.
Okay.
Thank you for your continued leadership, advocacy, and dedication to preserving the memory and history of the Armenian community. This evening they also brought a presentation of the proposed memorial sculpture as well as an artistic rendering of the future sculpture planned for the great part of the park. We appreciate the opportunity for our community to learn more about this meaningful project and its vision for remembrance education and healing.
Thank you councilmember Lou, mayor and vice mayor my council members and members of the community. On behalf of the orange county armenian genocide memorial committee, I'm joined by Hagobadulian and Gevork Matryoshian. I wanna thank you for the proclamation of 04/24/2026 as Armenian Genocide Remembrance Day. This year marks the one hundred eleventh annual commemoration of the Armenian Genocide. On April 1915 is the day we observe that the violence reaches back to the Hamidian massacres of the eighteen nineties and continues to this day.
More than one and a half million Armenians perished. We commemorate those lives lost and honor the survivors who rebuilt many of them here in Irvine. This evening, I'm honored to present the clay maquette sculptor Brittany Ryan of Laguna Beach, depicting a mother and child encircled by cranes in flight. Members, they're symbols of survival, memory, and enduring an enduring connection to the Armenian homeland. Alongside it is a rendering of the completed bronze sculpture as it will stand in the heart of the park with installation planned for spring twenty twenty eight together with the poster describing the project.
The maquette was made possible by community partnership fund grants generously supported by councilmember Lou, councilmember Goh, vice mayor Mayor Akron. Thank you for that essential early support. I also want to thank a new community partnership fund grant by council member Betty Martinez Franco. I'd also like to thank council members Betty Martinez Franco and Lou for joining our community's annual commemoration in Santa Ana this past April. Your presence was deeply meaningful.
I also want to thank the perennial support of council member Kathleen Traceter. I would be remiss not to recognize council member Mike Carroll who arranged the memorial site dedication at the Great Park in 2024. A milestone that set this work in motion. The Orange County Armenian Genocide Memorial Committee will stand as the first sorry. The Orange County Armenian Genocide Memorial will stand as the first public memorial to the Armenian Genocide in Orange County As a place of remembrance and reflection for the entire community. Thank you.
And at this point, I'd like to invite my council colleagues to join our guests for photos.
Thank you all and thank you councilmember Liu. I do want to have our staff note that at the next Great Park Board meeting, it would be good if we could have a brief report on the progress toward the installation of the memorial there. Thank you. With that, we move on to public comments for nonagendized items. This is an opportunity at the beginning of our meeting here for members of the public to be heard regarding matters not on the posted agenda.
Up to a half hour of public comment for non agendized public comments, again, as to matters not on the published agenda, but nevertheless within our subject matter jurisdiction, are welcome typically depending on the number of people who wish to be heard. We give up to three minutes. So Mr. Peterson, how many requests are there to be heard under public comments for non agendized items?
Thank you, Mayor. We have 13 requests to speak, 10 in person and three on Zoom.
All right. Why don't we, in light of that, to get within the half hour, let's limit each speaker to two minutes. And let's keep the queue open for just another minute or two. All right?
Thank you, Mayor. If I could call forward Susan Sayer, Alan Meyerson, Jason Garfield, Kevin Trussell, Heidi, Mona, Pam Wyckoff, and Dee Fox. And we'll start with Ms. Sayer.
Welcome, Ms. Sayer.
Thank you. Good afternoon. My name is Susan Sayer, and I'm an Irvine resident. Saying that we currently lack a cohesive city council is a gross understatement. I could not have been more disgusted by the total lack of decorum and unprofessional behavior you all exhibited on the dais during the last April 28 city council meeting.
You were disrespectful of one another and belittle fellow council members like children on the school playground. Your conduct and lack of cohesion will be for all to remember when it comes to filling out our ballots this coming November. You each have the freedom to exercise your right to place discussion items on the agenda, but this power should not be abused. You also have the freedom to remain silent and not to participate in agenda item discussion silence can often speak louder than words. It is the voters that have the power to alter provisions of voter approved initiatives not you.
Your lack of respect for your voters will most certainly be remembered come November. You should show your public commenters that you appreciate their efforts to communicate their concerns. Put away your cell phones, close your laptops, and show that you are listening to your constituents. You can learn a lot from the speakers some have a lot of knowledge and expertise on city matters many of us put a lot of time and effort into researching agenda items including communicating with city staff members and project applicants. You may not be able to respond to the speakers directly but you can show that you are listening to them and appreciate their input by bringing up some of the issues they present during your agenda item discussions.
Voters will also remember your support and recognition when it comes to filling out their ballots. Thank you.
Thank you for your comments.
Alan Meyerson.
Welcome.
Good evening councilmembers. Alan Meyerson. I've been thinking about what I wanted to say here. I want to echo everything that Susan Sarra just said. I also want to say something regarding a video that councilmember Tresidder put out on YouTube and bragged about at the council meeting.
It's amazing that you have the time to do something like this. I imagine your staff was the one they were the ones that put it out, but it was edited and taken out of context and made to look made to make the mayor look bad. I also want to let anyone up there that thinks that the mayor is asking me to come here and speak. No one has ever asked me to come here and speak. I would be coming here to speak no matter who is sitting in that mayor seat and no matter who is sitting on the dais.
I like to speak truth to power and that' why I do this. I want to call into question councilmember traceter s judgment of character since she aligned herself with someone on a past counsel that was charged with seven felony counts for election fraud. Councilmember trecedar has never said anything about this. No one has said anything about this that supported tammy kim. Your judgment of character is faulty apparently.
You never responded to anything that Tammy Kim did, yet you continue to support her. So, anything you have to say about anyone's character called into question by me, and I hope by a lot of other people. With that being said, I just would wish and hope that the people on that dais would start acting in a professional way. Stop trying to find fault with others and do something positive for a change. Thank you.
Thank you for your comments. Jason Gersfield, welcome, sir.
Thank you. So, with regards to Tammy Kim, if we're going to relitigate this, she was railroaded because she took a difficult stand on a difficult issue. Be that as it may, I'd like to speak about development today, not just at Oak Creek, but everywhere. So, you see people all over on Nextdoor talking about how great Irvine was when there were orange groves. Well, those orange groves are gone, and the small Irvine is not coming back. All cities grow. New York was once a small town on the tip of Manhattan. Irvine has gotten three times bigger in my lifetime. It's larger than Cincinnati and Pittsburgh. It's almost as big as Orlando and New Orleans.
If you want the Orange groves back, then you're going to you're in cuts incumbent upon you to explain who you're going to expel from Irvine. Similarly, we can't limit growth to zero any more than we can or should limit immigration to The United States to zero. If anything, I think we should embrace Irvine's status as a big city and allow for more development. And those who don't like it can move to a small town, just like I've been told to move out of Irvine if I can afford it. Irvine should not become a retirement community of a city.
We have Laguna Woods for that. Now with regards to the issue of traffic, I'm as annoyed as any of you. I'm in a bad mood in five minutes driving on this city's roads. And that's why I've spoken about making Irvine a more walkable city. I have the good fortune to live in Woodbridge where you have some hope of walking to the store. But I grew up in an area of this city where the nearest shopping center was an hour walk away. If we want to make traffic manageable, then we need to change that. And by the way, that will also help solve the problem of kids on e bikes, which we've been hearing so much about. So I understand this is a big issue. It can't be done in the next ten years. It can't be done tomorrow or in the next ten years, but we should move forward with that in mind.
Thank you. Your time is up.
Thank you for your comments. Kevin Trussell. Welcome.
Hi. I'm Kevin Trussell. I chair the Community Library and Services Commission for the City Of Irvine. The way the government works here is you're elected and then you appoint commissioners. And you'll appoint them to transportation, the various commissions.
And I think when you do that, you look at finance and you appoint a CPA, some some accountants, somebody who's good at numbers. When you look at planning, you probably appointed an architect or maybe a retired urban planner. And there's a lot of talent there. But unfortunately, and we've talked about this, we are grossly underutilized at the commission level. And it started with our previous city manager who bypassed the commissions, either made his own decisions, or took small decisions to the seven of you to discuss up here, taking up a lot of time, losing efficiency, and something the commissioner should have done.
I'd like to see us return to that let's use the minds and the expertise of these people is about 40 or 50 commissioners and committee members. Could you scroll to council business 6.1 please and mayor if you could just grant me a little latitude here I just want to talk about my framework. No
no problem.
Okay thank you. Let's look at 6.1. Clearly a transportation issue. This should go to our transportation commission and they should come back to you with recommendations. Mayor.
Mayor. Over here.
We're in general public comments. It's not the time to be talking about an agendized item.
Well, I think he was just talking about procedure, not the item per se. So, if you don't mind, Melchino, I'll momentarily overrule you. All right? Go right ahead.
Thank you. That should go to the Transportation Commission. The next two are library items. We have a community library and services commission that's not being utilized on these. We have talent there. Six point four women's conference. Sounds like another community service topic. Send your input to your commissioner. We'll develop it, bring it back to you, see if you like it. Lastly is
the Thank you. Time is up.
Go ahead. Finish your thought if you want.
Lastly is the independent auditor idea. Let's send that to finance. Let them come up with an auditor as needed and then also identify which special projects that should be should be audited by a third party. That's all I have. I'm if you let us do the work, you just saved about an hour or two tonight during your your business.
Thank you very much for your comment. I think we'll be giving real thought and attention to your remarks.
Thank you.
All right.
Thank you for the extra time.
Thank you. Welcome.
Thank you. I'm smiling like this for a reason. I discovered something very interesting. Okay. Good evening members of the council. My name is Heidi. I'm the founder of save oak creek, save Irvine. I'm here to highlight a simple but very real problem with the proposed Oak Creek Nature Park. Just a few miles away in Lake Forest, there is already an official City Of Lake Forest Nature Park. A quiet Oak Grove pocket park with trails along Serrano Creek.
Naming Irvine's new park the exact same thing will create constant confusion for residents, visitors, delivery drivers, first responders, schools, and trail users. GPS mix ups, wrong park arrivals, duplicated signage and marketing costs, diluted search results, and frustrated phone calls to both cities are completely avoidable. It's a sloppy plant. It's sloppy planning that wastes everyone's time and money. Rest assured, I've already sent a courtesy email on behalf of the city of Irvine to Lake Forest's parks and recreation staff, city manager, mayor Robert Pequeno, and council member Benjamin you in District 2 where the park is located in case our city council members are too busy amending more open space zones.
For the record, I respectfully ask you to require a unique name for this project, such as Oak Creek Preserve. Don't let this park go viral for a naming debacle our officials could have avoided. Just Google it. Thank you.
Thank you for your comments. Mona, welcome. Good evening.
I want to start with I agree with Alan and Susan. This has been a circus. This has been a waste of our time as well. We commit to listen to you and we have wasted so much time listening to you babble about nothing. It's a circus. You have a the master of ceremonies, Kathleen. You've got the clowns, and you've got two people that have sense in their heads. We're done. We need you to act like grown ups. You are responsible.
James, I asked you on Tuesday, and this is a reflection on that meeting, special meeting, to provide us, the residents, with your manifesto that you read so fast that was a word salad to all of us. Where is it? Where is it on the website? We need to see what you're talking about. When we talk about being fiduciaries, you've got $4,600,000 at your disposal.
How is it being spent? We need to know. We need to see it line item by line item. You cannot be using this money that is under your direction for you to do, let's say, let me see how can I send stuff to get elected? This is not acceptable.
You don't have to put the burden on the residents. You have to put the burden on you. You, each one of you, have less residents to take care of than the previous city council. There's seven of you. You are approximately responsible for about 50,000, not 340,000 or 320,000. So, you don't need as much staff. Start cutting on your side. 1,300,000 was wasted on a mobility Thank
Our time is up.
Thank you for your comments.
Pam Wyckoff.
Welcome.
Mayor and council members, rigged choice voting is a bad idea. Never try to fix a bad idea. On April 28, I was in line to speak against RCV when the attorney announced a change of the issue. The original agenda subject was that we would discuss a public vote regarding RCV. The lawyer said there was a change in RCV could go through with a simple council majority.
This correction on the agenda is a significant change, which is a violation of the Brown Act. This nullifies the four twenty eight vote to proceed. RCV enables and complicates an already proven corrupt vote tabulation. Now how was our Orange County vote voter center compromised? Well, there was the bomb scare and the counting which started for twenty nine days before election date and ended twenty nine days after our our voting date.
There are the cast vote records discrepancies. We also had 66% of a ballot given to to Biden and to Trump and 32% to Biden. Between the postal service, ballot harvesting, and dropped boxes, there was no proper chain of custody. Orange County farms out their tabulations to heart intercivic. I'm out of time.
This outsource vendor is an investment of HIG capital. Our data was fed through smartmatic and Seidl to Dominion. Dominion has illegally retained control of their source codes. The manufacturing country of origin was China. Even if we get new hard and software elections are not secure unless we enact these four rules. Voter ID and resident verification. Mass mail
Your time is up.
Just finish your thought momentarily.
Second rule. No mass mailed out ballots except for sick, traveling, and military absentee ballots. Ballots must be received by election day and paper ballots only counted in one day at the precinct level.
Alright. Thank you very much for your comments. Dee? Welcome.
Hi. My name is Steve Fox, and the folders that are being passed out to you now have something entirely different than what I'm going to talk about because unfortunately what I'm going to speak about is more pressing. I strongly object to council member Melinda Lou's nomination of the Irvine Wall Of Recognition. Being appointed to serve on a few boards around Orange County or teaching a foreign language to a selected group of people does not automatically rise to the level of extraordinary service worthy of permanent recognition by the city. What is known about Anne Hugh is her close association with disgraced former council member Tammy Kim and involvement in the failed EV charging station project at The Great Park, a ten year deal that has left more than 100 unusable charging stations taking up valuable parking spaces.
Also known is her as a defendant in a civil rights lawsuit involving her Oceanside motel that resulted in a settlement being paid to plaintiffs. Permanent civic honor should not go to individuals whose records are beyond serious public controversy not nominations that immediately create distrust and concern throughout the community. This
should
not be a political favor system for insiders, friends, and connected allies. Do the honorable thing, Melinda Lou, and remove her name from the nomination list so her name isn't dragged through the mud by me at every city council meeting. Okay. And I just want to take a couple more seconds to tell you that the folders in front of you is Melinda Lou's data information on OCPA that she claims she doesn't have and her reason for deleting Kathleen Trecedar's mayor's agenda item about the OCPA that's charging all the customers in Irvine more money every month than SCE. It's crazy. It's ludicrous.
Thank you, your time is up.
Thank you for your comments. Helen. And Helen, you have ninety seconds. Welcome.
Distinguished chairman, mayor Larry Egan, council members, good afternoon. My name is Helen Wang, but my English is very poor. I try my best to impress me clearly. I live at Parkhurst Apartment in Irvine. The city of Irvine is famous for its wonderful living environment for all residents.
First of all, I would like to express my gratitude to you. However, it is being destroyed today by terrorist organization. First, the food available in in our local supermarkets had been severely polluted by harm drugs. Our drinking water has been polluted. And the the fake eggs emergence in supermarket.
The milk, cheese, beef, and pork sold at the supermarket has been piloted. And they also committed all kinds of violent Thank you.
Time is up. Why don't you take fifteen seconds to finish your thought, if you would?
Okay. Thank you. Awareness crimes on campus. I was threatened. If I tell you the truth, my family will be poisoned or murdered.
I think we're gonna have
My child has been struck by vehicles and injured several times.
I think we're going to have to leave it right there. All right? You for coming forward. Thank you for your comments.
Thank you.
Mr. Mayor, our last two in person speakers have AV materials. So if I may take the Zoom comments and we'll come back to those individuals.
Yes. So, it's just the two who are left? I'm sorry? It's just two more. No, we
have actually four on Zoom and then, yeah, two in person that have AVs. Total is six.
The queue is closed now, is it not? All right. Go right ahead.
Thank you, Mayor. Our next speaker is Eric Nashanian. Mr. Nashanian, you may unmute your mic.
Thank you, Council Members, Mayor Agram. I wanted to give a recap of the twenty three, twenty twenty six DEI meeting, which had the same agenda as the March meeting that was canceled for lack of quorum. At this meeting, only four of the seven, committee members attended. There was no participation by the public on agenda items or during public comments. The only agenda item other than, approving the minutes for the previous meeting was a discussion about the women's conference.
No actual items were voted on during the meeting other than approving the minutes. Lastly, Wendy Bacota, Councilmember Liu's committee member, demonstrated a desire to hijack the committee or future committee meetings to pursue her own agenda on behalf of the local Jewish community regarding a protest that occurred outside of City Hall on a Sunday in April where a banner was erected with provocative language about Israel. She inquired if the committee was authorized to make statements regarding such incidents to which she was informed only the mayor was authorized to speak officially for the city and such statements would have to be approved by him and go through him. You heard me talk about genocide denial here in the city and that the mayor is enabling genocide deniers by formally recognizing them. He didn't deny that.
He had an opportunity to here in public, and he did not deny that. He should be censured. I hope that our members on the diocese that are representatives of the OCPA will announce make announcements about OCPA conduct. Apparently, they're not speaking about the OCPA because there's nothing good to say about the OCPA. And on top of it, what they want to do is they want to suppress speech by the public about the failures of the OCTA so that they can prevent the public from being fully informed.
Melinda Liu, if you really cared about the Armenian genocide, you would have recognized it in April. You would have done something about it in April. You made two announcements about this memorial and the event that happened was happening in a city other than Irvine. But you didn't do anything about this proclamation in April.
Thank you. Your time is up. Our next speaker is Jo Anne Slobodian. Jo Anne, you may unmute your mic.
Thanks, Carl. Hi, everyone. I'm Joanne Slobodian. Thank you, Council Member Carroll, for including the Office of Inclusion in the audit discussion. You were very impressive at the last meeting. Later this evening, I will be asking that Oak Creek easement tracking and trigger mechanisms be included within that audit scope. But right now, I wanna focus on something bigger. In July, this council unanimously voted for the future of the 88 dash one Oak Creek protections to go before the people of Irvine. Now residents are hearing something very different, and we deserve to know what's changed. Mayor Agrin appears to be the only member of this council still publicly saying this issue should go to a ballot measure.
I appreciate knowing where he stands, and I would like to know where the rest of this council stands too. Some council members believe the Irvine Company fulfilled its 88 dash one obligations by proposing a smaller 50 acre nature park and avocado grows. That is their opinion, but that opinion should not become the decision for an entire city. Your job is to represent us, not to replace us. The voters already approved 88 dash one, and residents deserve the right to decide whether these protections were truly fulfilled.
And Mayor Agrin, since you helped create 88 dash one and if you truly believe in it, then put the easement acceptance and the unanswered 75% threshold questions on a future agenda so the public can finally get clear answers. Thanks everyone.
Our next speaker is Vicki Johnson. Ms. Johnson, you may unmute your mic.
Hello, I have a video. I hope we got into the system there.
We can hear you.
I submitted a video.
We don't have a video for you, Ms. Johnson.
All right. I guess some technical glitch. Thank you.
If I may go back to the in person speakers, mayor, if I could call forward Max E and Mikaela Montanair. And we'll start with Max.
Welcome.
Hello. I would like to start with Senate Bill 79. This bill clearly states that transit oriented development must be located within one half mile of a transit stop. Next slide. On this slide, you can see that the closest age of the golf course is more than 2.5 miles from the Metrolink station. If you intend to build a house on a golf course, I don't think you follow what the state is asking you to do. And I don't believe that Irvine Connect shuttle stop qualifies as a major transit stop. Next slide. On this slide I showed you before, only a small portion of Plain Area 12 remains undeveloped. Mister Melchin, you're clearly an intelligent person.
Instead of explaining why the easement is not part of resolution 88 dash one, please use the same level of intelligence and answer a real question before the council and the public. Why has the easement still not been formally accepted and recorded recorded? Next slide. According to my Google Maps estimate, the area is approximately 82 acres, not 50 acres. And I also showed you the slide before.
This issue began almost a year ago. If I remember correctly, it all started on May 15, and now we are approaching one year anniversary. Over time, the proposal changed from full scale redevelopment to promised 50 acres park, But when I measured the map, I got a different number. This proposal is misleading in many ways, and I believe you all know that. I'm tired of watching council members argue with each other.
It was really circle last meeting. No one is willing to challenge a powerful developer. It's very sad to see that all of you seems to agree and destroy open a city's open space from work or at least consider to destroy it. Some of you pushed very hard for audit. How about the push for audit for the easement?
Thank you. Your time is up. Mikaela?
Welcome.
Thank you. I just have a couple of pictures from the party that we had this weekend. And I wanted to say, well, we had a library advisory committee celebration at University Park, Community Park. And I wanted to thank all of you for your participation or acknowledgment in the celebration. And say, of course, that we were honored to have council members Betty Martinez Franco and Kathleen Traceter join us, along with chiefs of staff from council member Traceter, my and mayor team.
The availability meant a lot to the community. We had people from across town and I think they were all touched as well. We shared your support with the near 200 folks that have now joined the cause. Just to briefly repeat one part of what I said on Saturday, I think we're really lucky to be working with all of you. This is a council that united in delivering a fantastic library system for Irvine. And while sometimes it might be a bit sticky as we get there, we really appreciate that we can have this ongoing open dialogue. It is a big deal, and we're excited about it. So, thank you very much.
Thank you. That concludes
our public comments for nonagendized items. Taking us to the next item on the agenda which is the city manager's report. I'll turn now to city manager Sean Crombie and ask if he has a report for us this evening.
Just one item tonight, Mayor. Our police chief Mike Kent will provide a brief update on immigration enforcement.
Thank you.
Thank you, City Manager Krumovi. Good evening, Mayor and City Council. Since our last meeting, City Council meeting back on April 28, we've had one incident that I'd like to report that occurred on Wednesday, April 29. It happened in a business in the area of Bacon Rockfield. An employee was taken into custody for an immigration violation related to gang and narcotic violations. The person was taken into custody by Immigration and Customs Enforcement. And that is all I have.
If I might, Chief, was that person the subject of a judicial warrant?
They had a warrant for their arrest, yes.
A judicial warrant.
I'm not sure what kind of warrant, but I know they had a warrant for their arrest based on information they provided us.
All right. If you could let us know if that was a judicial warrant or simply an administrative warrant. Sure. Think we would want to know that, all right? No problem. Thank you very much. Nothing further, Mr. Crumby? That's correct, Mayor. All right.
With that, we'll turn to announcements, committee reports, council reports. This is an opportunity for council members to briefly report to the public what they have been doing beyond the participation in these meetings. We have a number of duties and responsibilities and council members are asked to make brief reports to the public from the dais here. I have three requests. Councilmember Martinez Franco, followed by Council Member Liu, followed by Council Member William Goh. Council Member Martinez Franco.
Thank you. Good evening, everyone. I have a few quick updates to share from my office tonight. Next slide. My office is giving free groceries to those in need in our communities by partnering with Tree of New America on Saturday, May 23 from three to five p. M. At My Car Community Park. Food will be distributed on a first come, first served basis, and we encourage attendees to bring their own reusable bags. Next slide. At Ciclo Irvine, I shared exciting news of a new bike share program coming to Irvine this summer.
The program will feature 20 electric bicycles and two docking stations, one at the Irvine Civic Center and the second just near UC Irvine. This pilot program is a step toward creating more ways for residents, students and visitors to move around Irvine with ease while supporting a healthier, more sustainable future. Next slide. Last week, I attended the SCAG Regional Conference and General Assembly to join regional leaders in conversations about the issues shaping Southern California's future. This conference brought together elected officials, agency leaders, and industry partners to focus on topics like housing, transportation, infrastructure, and resilience.
These are all issues that directly affect our city as we continue to grow. Next slide. Last, I invite you to stay connected by following me on social media. Next slide. You can also stay up to date by subscribing to our monthly newsletter where I'm sharing updates from District 5 and the city of Irvine. Please reach out if you have any questions or concerns. Thank you.
Thank you, councilmember Martinez Franco, councilmember Liu.
Thank you. Good evening, everyone. I have a few updates to share from the last two weeks. May is Asian American, Native Hawaiian, and Pacific Islander Heritage Month, with 44% of Irvine's residents identifying as AA in HPI, I was proud to submit a proclamation honoring their contributions to our city, from our school, to our businesses, to public service. Next slide.
The Irvine Child Care Project Board approved the fiscal year twenty twenty six-twenty seven budget and renew all 29 provider leases across every ISD K through six campuses. Accessible childcare at every school site is how we support working families in Irvine. Next slide, please. At Ciclo Irvine, we connected with residents and visitors about alternative transportation options available here in Irvine. Events like this help us understand what sustainable transport can look like in Irvine.
Next one, please. On June 3, our office is hosting a fire prevention town hall at OCFA headquarters from seven to 09:30 p. M. One of the best ways to stay safe is through prevention, and we want residents to learn directly from fire professionals about how to protect their homes and families. Next one, please. On June 11, our office is hosting a project and development town hall at Portola Springs Community Center. From six to 07:30 p. M, we will share with residents updates on projects planned in their neighborhoods. Join us and learn about what's being built. Next one, please. And thank you. And please contact our office if you have any concerns and need.
Thank you, councilmember Liu. Councilmember Goh.
Thank you, mayor. Hello, everyone, and thank you for joining us tonight. I have board updates from SCAG, Metrolink, OCTN, and event recaps from the past week. I attended the Southern California Association of Governments regional conference and general assembly at Palm Desert last week. I was honored and proud to represent our great city of Irvine.
Last week we also hosted tech day at City Hall showcasing Irvine's technology and innovation through a pop up market and start up pitch competition. I participated in the economic development panel alongside local founders and business leaders to encourage investments in Irvine. Next slide. Director of community and library services Chris Swammer will be joining us at our virtual town hall monthly district two, 05:30 p. M.
On May 26. We will be discussing the department's impact on Irvine from public libraries to open space and trails. Next slide. As CAG, we approved support for the basic act which will expand opportunities for local planning and transportation grants funding. At Metrolink we passed the three month continuing resolution for fiscal year twenty six-twenty seven budget in order to adjust from reductions in funding from member agencies. At OCTA we reviewed budget priorities and plan for the twenty six-twenty seven budget. Next slide. Finally, you can scan the QR codes to stay up to date with our newsletters and social media. That concludes my council update. Thank you.
Thank you. Are there other announcements? There being none, let me give
several concluding announcements. Public works week is ahead of us. The community is invited to explore the essential services that keep our city running at the twenty twenty six Public Works Week celebration. This free event will take place on Thursday, May 21, from 10AM to 2PM at the Great Park in Hanger 244. It's become a real Irvine tradition now, where you can get an up close look at public works equipment, dump trucks and street sweepers.
There will also be interactive exhibits and staff demonstrations highlighting the vital role public works operations play in daily life. Meet city staff, learn about upcoming projects, and gain insight into career pathways in public service. For more information about the event, visit cityofirvine.org/publicworksweek. Pride in Irvine. In honor of Harvey Milk Day and June Pride month, the city of Irvine invites the community to attend the fifth annual Pride in Irvine event on Friday, May 22, five to 7PM at the Irvine Civic Center Piazza right here at City Hall.
Join us as we raise the progress flag in recognition and support of our LGBTQIA plus community. This free event will feature live music, refreshments, activities, and opportunities to connect with local advocacy and support organizations while learning about valuable community resources. For more information, visit cityofirvine.org/pride. Game, basketball, and contemporary art. This provocative title relates to a city of Irvine invitation to, the entire community to experience game, basketball, and contemporary art, an art exhibit opening Sunday, May 17 at the Great Park Gallery.
Join us for an opening reception from one to 3PM. You can also take part in a free art activity and enjoy live jazz music in the Palm Court Arts Complex. Admission to each event is free. This exciting art exhibition celebrates basketball as both a sport and a form of creative expression. Explore contemporary artwork inspired by basketball culture.
The exhibition showcases basketball courts that have been transformed into works of art throughout The United States and around the world. It also highlights the newly renovated Great Park Basketball Courts featuring original artwork by California artist Katie Ann Gilmore. For more information, visit yourgreatpark.org/arts. And, finally, we have Memorial Day events of real note. The city is hosting two Memorial Day events to honor and remember the sacrifice of fallen American service members.
A special candle lighting ceremony will be held at the Northwood Gratitude And Honor Memorial at Northwood Community Park on Sunday, May 24, at 4PM. This event pays special tribute to fallen service members who served in Afghanistan and Iraq. The ceremony is held in partnership with the Northwood Memorial Committee. Guests are encouraged to bring lawn chairs or blankets for comfortable seating. We are also hosting the annual Memorial Day ceremony in the formal garden at Colonel Bill Barber Marine Corps Memorial Park on Monday, May 25 at 10AM.
A commanding officer from Irvine's adopted two eleven Marine Battalion will speak to recognize fallen service members and their sacrifice. Guests can honor family and friends who died in service to the nation by posting a brief remembrance on a memory board at the event. And cards will be available for anyone who would like to send a message of appreciation and support to members of our adopted two eleven Marine Battalion. For more information about these Memorial Day events, please visit cityofirvine.org/specialevents. Thank you to my colleagues for your reports.
That concludes reports and announcements. And we now move on to the next item on the agenda, which is additions and deletions. I'll turn to our city manager to ask if there are additions or deletions worth noting at this time.
Yes, mayor. There's two requests. First, I'd respectfully ask that item 4.1 be continued to June 23. Additionally, item 6.2 be deleted from the agenda to be brought back at a future date.
All right. Without objection, those changes will be made. Mr. Melchin, do we need to do anything by way of a formal motion?
It would be helpful because 4.1 is a public hearing to have a motion and a second from the council to continue to June 23. That will avoid us having to redo the public notice for
the matter. And we don't have to open the matter now No. For All right. I'll move that item 4.1 be continued to when?
June 23.
June 23. Is there a second?
I'll second.
That was seconded by Council Member Liu. Will the clerk please call the roll?
Mr. Mayor, just as a formality Yes. This would be a vote of both the board and the city council.
Or the authority. Excuse me. Yes. Council member board member Carol. Yes. Council member board member Go. Yes. Council member board member Lu. Yes. Council member board member Martinez Franco. Yes. Council member board member Trishida. Yes. Vice mayor, vice chairman Mai.
And Mayor Chairman Egren? Yes. Carries seven zero.
Thank you. That takes us to the point in our agenda, and I may need a little bit of help from our city attorney or from Mr. Peterson, but we are now convening to the special joint meeting with the Irvine Facility Financing Authority. Is that correct?
Mayor, because we just continued the sole item that involved the facilities financing authority, there's no need to convene the meeting.
Were there not minutes, though, also?
We do have a set of minutes for the authority on the agenda as part
of I the apologize.
You trust Carl.
All right. We'll go with Carl on this one then. So we're now convened to the special joint meeting with the Irvine Facilities Financing Authority. I think we need a roll call vote on that.
Sure. Council member, board member Carol.
Yes. All right.
Council member, board member Go. Yes. Council member, board member Lu. Here. Council member, board member Martinez Franco. Here. Council member, board member, Trisheeder.
Here.
Vice mayor, vice chairman Mai. Yes. And mayor, chairman, Agram?
Yes. Just to keep people advised procedurally by way of that little bit of magic and whiz bang activity, we are now meeting in what amounts to a joint meeting with the Irvine facilities financing authority, which as I understand it only has on the agenda now remaining the minutes. Is that correct?
You have item 2.1 through 2.4 for city council, and then one item for the authority, which is 3.1, as you mentioned, a set of minutes.
Should those be taken separately or sequentially? What do you suggest? Or altogether? You can take one vote. All right.
Why don't we move on then to the consent calendar, which consists on the council agenda of items 2.1 to 2.4. Consent calendar items are typically considered to be routine items that are handled by a single roll call vote For the Irvine facilities financing authority, the only consent calendar item is item 3.1, which is the minutes. I think we'll just handle them together and open those matters 2.1 to two point four and three point one will be open to public comment at this time. Do we have requests for citizens to be heard?
We do not, Mr. Mayor.
Alright. There being no requests, I'll move adoption of, well, let's do it in one fell swoop. I'll move items 2.1. Measure. Oh, wait. 2.1, two point two, two point three, and 2.4, as well as item 3.1. Measure. Yes.
I would like to put 2.4.
2.4. That's all right. The motion will be modified to pull 2.4 and simply move items 2.1 to two point three and three point one.
Second.
Seconded by council member and vice mayor James Mai. Will the clerk please call the roll?
Council member, board member Carol. Yes. Council member, board member Go. Yes. Council member board member Lu? Yes. Council member board member Martinez Franco? Yes. Council member board member Trusieder?
Vice mayor, vice chairman Mai? Yes. And mayor chairman Agram? Yes. Carries, seven zero.
Thank you. That concludes those items. With the exception of 2.4, I'll recognize now council member Martinez Franco.
Yes, thank you so much. I wanted to put 2.4 because it has so much good information that our residents deserve to know all the good things that we are doing for affordable housing. So many times we don't hear all the things that we are doing and we think that we are not doing enough for affordable housing. So this presentation is going to show us all the good thing that the staff has been fighting the grants the staff is fighting for grants at the state level and all the good things that are coming. Thank you.
Thank you. Thank you for bringing that to our attention. And with that, would you like to make the motion to adopt item 2.4?
I move the motion to adopt item 2.4.
I'll second that. And staff can come forward now and speak to the motion and the item.
Good evening, mayor and vice mayor, members of the council. My name is Hita Mosesman. I am the housing manager for the city. And joining me is Valeria Ramos. She's part of the housing team as a senior management analyst. And we did prepare a presentation to summarize this grant. We're happy to do the presentation or answer questions. It's your choice.
Why don't you move ahead with the presentation? I assume it's fairly brief.
It is.
But this is, as Council Member Martinez Franco said, a very important matter. We are making extraordinary progress here in Irvine. Actually, there's tremendous progress being made statewide. And, I think it's important that we take five or ten minutes to hear from you, Anna.
Thank you. And, I'll start. So, the presentation is regarding a grant called the permanent local housing allocation grant. This grant is provided by the California department of housing and community development. And it's to fund unmet housing need in communities. It is offered to every jurisdiction in California. It is noncompetitive and the amount is based on the population of the jurisdiction. The annual funding comes in five year increments And it is a really, really flexible grant. It can be used for rental or ownership housing. It can be used for predevelopment costs, construction, or preservation of affordable units.
By way of background, the city has already applied for this grant in 2020. That was the first application date. And the year one funding out of that five year period went to partially assist the cartwright family apartments 100% affordable housing project in the Irvine Business complex area of the city. In 2024 the application was amended again the flexibility on this grant you can amended it appears as many times as you need to as things change. And that was amended to accommodate the bridge housing facility but that project did not move forward and so no funding was used for that.
In order to capture years two through five we have a second amendment before you on the consent calendar and that is to change the application again to fund 60% of the revenue for the proposed gateway project or a rental project to provide assistance 100% affordable project and 40% for a new program workforce housing down payment assistance program. There is a new requirement that 40% of the grant funds do need to go to ownership housing now that' a change from the previous amendment. Amended application is before you this evening It has attached to it draft policies and procedures related to the down payment assistance program. We are on a bit of a deadline. The state requires us to submit this amended application by June 30.
So, we can hold on to all of that funding. If we did not make that deadline, we would miss the year two funding, which is about $1,000,000 And, next slide, please. So, the proposed workforce housing down payment assistance program, again, 40% of this grant we're estimating at $1,700,000 over the next four years would be allocated to this. It's modeled after a similar program in the city of Simi Valley. They're also using this grant for this purpose.
And, what's interesting about this grant and the flexibility is we can actually target the missing middle people who wouldn't normally qualify for affordable housing. There's this area median income that dictates whether you qualify or not, where you fall within that. And so, traditional affordable housing with a capital A is for 120% of area median income and below. This program would serve those at 120% to 150%. So, it's really the only funding source for ownership, especially at that income level.
It would operate as a revolving loan fund. So, the city would provide town vein assistance but it would be paid back. And also the city would retain a share of the equity from the home that would be sold. Again, you do have a draft policies and procedures document. This can be thought of as kind of a living document.
We can make changes to it. It is in draft form, but we needed to provide that to the state to show them at least a template of how this program would work. And speaking of how it would work, the city would provide a maximum down payment assistance of 15% of purchase price. The homeowner would find their own home that would not be income restricted. They would go to the open market and find a home that would be no more than 70% of median home price.
So, think of a first home, perhaps a condominium. And then, again, they select their own home. They provide and select their own mortgage on the open market from a qualified lender. And then, when the home is then sold, we as a city get our loan back 0% interest it's a second mortgage they don't have to make any payments on it they pay back the original loan plus a percentage of equity And the next slide illustrates a hypothetical example. Because I know it's hard to wrap your head around what those numbers would look like.
Thinking about someone buying a home this year for a purchase price of $1,000,000 They would hopefully bring some savings with them, potentially. Even if they didn't, it would be okay. But in this scenario, 50,000 would be brought in as their share of the down payment. The city would loan 150,000 so that the homeowner would have a 20% down payment keeping the payment a little bit lower with the larger down payment. And so the city would be providing in essence 15% assistance And that percentage is we refer to as the ratio of program assistance is important in the formula on how we are paid back and on the equity share as well.
So, if that home was lived in for five years and the homeowners decide they're going to sell and move to a different home, let's just say they sold it for $1,200,000 after they pay all of their commissions closing costs, whatever remaining mortgage is there. And then they get their original down payment of $50,000 back. We get our $150,000 from the down payment assistance. It leaves an extra that we're calling the net equity of $190,000 The homeowner would get 75% of that amount. So, in this hypothetical example, that would be about $143,000 The city would get that ratio of original assistance, which is 15%, plus a static 10% added on.
So, that would be a constant number for a total of 25% share of the equity in total with the original loan. And next slide please. So, on the rental side, we covered the ownership side. The proposed project would be the affordable portion of the Gateway Village project. That would be nearly 300 units of affordable housing at lower incomes.
80% of area median income and below. The projects affordable housing typically does require some type of financial assistance to get it off the ground. And so, we would have about $2,500,000 available to us. And, again, it's a flexible grant. If that doesn't need to be spent for that purpose, we can allocate it to another project and amend the application.
It can be used for predevelopment, construction, many different things. And, again, we're estimating $2,500,000 over four years. And next slide, please. This last slide just shows you sort of a pie chart of the funding. So, 1,700,000 over four years for the ownership portion of the program, dollars 2,500,000 for the rental. And we also get an administrative allowance that we can use for staff time and other costs as part of the grant. And that concludes our presentation. We're happy to answer any questions you might have.
Well, thank you very much for that report. Thank you, Councilmember Martinez Franco, for pulling this item and bringing to everyone's attention just how much we're doing. I, in my State of the City remarks recently and last year as well, stated the goal of reaching 10,000 affordable housing units in the city of Irvine. I don't have to tell folks there's an endless need for affordable housing. We can't take care of the entire world, the entire state, even Orange County on our own.
But we can do our fair share and then some. And I just want to take this opportunity to thank you, Hida, and your colleagues and others for all the creative, innovative work you're doing to take advantage of every single dollar that we can and to integrate affordable housing into the mix of housing in the Irvine community, which I think is a stellar example for other communities. And thank you for what you do. With that, I want to turn to council member or vice mayor James Mai, followed by concluding words from Councilmember Martinez Franco and then Councilmember Liu. Councilmember Mai.
Thank you, Mayor. And I'd like to echo a lot of the words that the mayor said as well with this program. I think the important thing here is a lot of people believe that some of these programs are prepackaged from the state and we just accept them. But in this case, think lot of credit goes to Hida, your team, and then also you and the entire team here on the creativity of this. Because this I've worked with a lot of HCD departments over the years at the county level, state level, but I haven't seen somebody take a proactive approach to something like this and create a program that actually benefits the community, but also builds equity for the city as well, develops revenue for the city.
And that's amazing where we don't have to spend $1 but we're sharing the equity with the residents as well. So, job on this and I hope we can expand this. Thank you.
Thank you, Councilmember Mai. Councilmember Martinez Franco.
Thank you so much. The first day that I got into the office, it was one of my purposes as well, to increase workforce housing because it's not only people that are about to lose their homes, it's people that are in the workforce, people that work here in Irvine that cannot afford to pay their mortgage or just to live in the city. So when I know for those of us who have lived so many years in the city knows that there was a program similar to this back in the day, early 2000s still. And a lot of people were able to get their homes that way. So to bring back the opportunity to young professionals to buy their homes, that's going to be really cool.
And not only that, to keep on building into that with the equity that you're going to recover from that loan to keep on helping people, it's I think this is the way to do it. So thank you so much for all the work and for finding those grants from the state. Thanks.
Thank you, Councilmember Martinez Franco. Councilmember Liu, I think you'll have the last word.
Thank you. Well, first of all, thank you. I really am looking forward to this program being launched. So, just believe that we kind of raised this question a little bit before about whether this will be a program that will eventually, if we will be able to find private funding, would we be able to accept that? Or that will be a restriction of some of the grants that we receive?
That's a good question. And there is an option for the city to potentially form a housing trust. That would be designated funds that the grant could go into and then that would allow for private donations from companies, employers, etcetera, which I think would resolve any issues of giving funds directly to city may trigger some issues with gifting and things like that. And so, it's for a primary purpose, and it would be a restricted fund. But, I do think that's an option to look into.
And, with regards to using this a portion of this into a development affordable housing development, we will be able to support something in collaboration with other housing finance trust or funds? Yes, that
we could have those funds, our funds, these grants funds, plus any kind of donations for workforce housing in the fund together. And, that would give it the sort of designated purpose for down payment assistance for local folks who work in Limp and Irvine. Okay, great. Thank you.
Thank you very much for the report. There is a motion that is properly in front of us. Would the clerk please call the roll? Council Member Carroll?
Yes. Council Member Go? Yes. Council Member Liu? Yes. Council Member Martinez Franco? Yes. Council Member Trecedor? Yes. Vice Mayor May? Yes. And Mayor Egren? Yes. Carry seven zero.
Thank you again to our very, very capable staff. Appreciate it. With that, we have covered the consent calendars. Item 4.1 has been continued. We now move, I believe, well, no, we have to adjourn the special joint meeting at this time.
I'm trying to keep track of all this. Having been in a special joint meeting, we want to adjourn that joint meeting and return simply to the city council meeting, the regular city council meeting. I will also move that adjournment of the special joint meeting. Is there a second?
Second.
Seconded by Council Member Mai. Would the clerk please call the roll?
Council Member, Board Member Carroll?
Council member board member Go? Yes. Council member board member Lu? Yes. Council member board member Martinez Franco? Yes. Council member board member Trusieder?
Vice mayor, vice chairman Mai? Yes. Mayor, chairman Agram? Yes. Carries seven-zero.
Thank you. We're now reconvened to the regular city council meeting, taking us to item five, which is public hearings. Public hearings are a slightly more formal procedure, but otherwise are pretty much in the nature of counsel business. Public hearings tonight consist of simply one, item 5.1. Will the clerk please identify this public hearing item by subject and title?
Item 5.1 is approval of the Community Development Block Grant, Home Investment Partnerships, and Emergency Solutions Grant twenty twenty six to twenty twenty seven action plan funding
recommendations. Thank you. This is a public hearing which I now declare open. We have our staff available. Please identify yourselves and if you would make the presentation. Thank you.
Thank you. Good evening, members of city council. My name is Sarah Scobedo, management analyst, part of the office in health and wellness. With me tonight is Valiquette Sio, program assistant, and via Zoom is the city's federal grant consultant, Frank Perez of NBG Associates. Thank you for the opportunity to present the recommended funding allocations for the city's community development block grant, home investment partnerships, and emergency solutions grant.
As you know, the US Department of Housing and Urban Development or HUD provides our city with the following entitlement grants. CDPG, which funds community programs and capital improvement projects. The home investment partnership program, which focuses on the creation of affordable housing and ESG, which addresses homelessness prevention and rapid rehousing needs. These grants are essential to our ability to address critical needs in our community, particularly for our low and moderate income residents. HUD provides annual entitlement grants to the city.
These funds support a wide range of activities that benefit our citizens, residents, including affordable housing, public services, capital improvement projects, and homelessness prevention. To remain eligible for these funds, the city must follow all federal regulations and program guidelines, conduct a public hearing tonight, and submit the annual action plan by May 15. The twenty twenty six through twenty seven action plan outlines how the city will allocate the CDBG home and ESG funds during the program year beginning July 2027. It describes how each funded activity and addresses priorities in our consolidated plan and establishes measurable goals for each project. I want to acknowledge that the thorough review process conducted by our community and library services commission, they held three public meetings to review all funding applications, hear oral presentations from the applicants, and carefully evaluate each proposal against our established criteria.
Commission considered factors such as each program's alignment with the consolidated plan, the efficiency of the proposed services, the organization's capacity to deliver results, and the number of residents who would benefit. Had released the city's allocation on 04/03/2026, the total funding available for this program year is about $3,700,000. It is important to note that the funding of these programs have no bearing to the city's general fund. These figures include the exact allocations and are fully accounted for in the proposed budget. The commission reviewed 14 applications for CDBG public services and is recommending funding for 11 organizations.
Moving to our funding let's look at first the CDBG which is before you here.
The full list and recommended amounts are shown here in attachment one of the staff report or recommendations to stay within the available budget. For cdbg capital improvements we received one application from the public works and sustainability department of ada improvements at various citywide locations. The commission recommended fully funding this project at their full request. ESG funds focus on homelessness prevention and rapid rehousing. We received four applications and the commission recommends funding all.
All agencies have committed the required 100% match were also recommending $17,500 for the regional hMIS data systems operated by the orange county united way which will be paid out of the ESG administrative agency. For home capital funds no applications were reviewed during the nova process the commission recommends earmarking the available amount for future affordable housing development project. As noted in the staff report city staff recommends issuing a targeted affordable housing focus notice of funding availability to include these home capital funds. Applications will be better for eligibility and brought back to the committee and library services commission and city council for consideration at a future meeting. This approach will help us maximize the creation and preservation of affordable housing units for low income residents.
In conclusion we are recommending that the city council approved by resolution the twenty twenty six twenty seven action plan and the cdbg home and ESG funding allocation as presented. These plans and allocation represent our commitment to addressing the needs of our low and more income residents while complying with all of the hard requirements. This concludes our presentation. We believe these recommendations align well with the priorities in our consolidated plan and will make a meaningful difference for urban residents who need these services the most. We happy to answer any questions from the council. Thank you.
Thank you for your report. Thank you for all the good work that went into it, both from the staff and, of course, from the commission. We assume we will be hearing a little bit about that in a moment. But it's just important, I think, for us to note just how much our staff and our commissioners and nonprofit organizations are doing to meet unmet human need in this city, helping thousands and thousands of people. I want us to pass this thinking it's just business as usual.
I think everybody's stretching to do more and more to really create an exemplary community here and see to it that unmet human need is in fact being met, whether it's childcare, housing, a variety of social support systems. Very, very impressive. Thank you. I'm going to turn to my colleagues to see if they have any questions of staff or comments at this time. And then we will turn to the public at large for comments. One quick round of questions or comments. Councilmember Liu.
Thank you. Thank you for the presentation. I wanted to highlight this part. A lot of residents aren't aware that these are very worthwhile organizations, like the mayor mentioned, covering child care, after school care, child development, senior services, food services, housing, and all kinds of well, domestic violence and all kinds of quality of life issues, such as support to residents. And so, I wanted to thank all the commissioners And for spending the I know how much time you've worked on this, and also the staff for working on this to really find an equitable way to meet everybody's needs.
And, I wish we had more to give. And, if anybody's out there willing to donate, please look up these organizations and help them and support them financially.
Thank you, Councilmember Liu. With that, and seeing no further requests at this time, I'll turn to our city clerk, Mr. Carl Peterson. Are there requests from citizens to be heard?
Thank you, Mayor. We do have one request to speak.
All right. Is that person present?
They are, Mayor. If I could call forward Kevin Trussell.
Welcome back, Mr. Trussell.
Thank you. It's been a while.
Since you're the, loan, requester here. I know I know you and the commissioners did so much work. Do not feel yourself constrained to three minutes, please.
I need more time on the last speech than this one. Okay. But, as stated, I chair the Community Library and Services Commission. I'd like to thank the staff for all their hard work, Sarah and Vali, and I sure appreciate the guidance of Director Slama. Thank you. I'd also like to thank all the commissioners. They're fun to work with. They're great people. You've done made great selections, your appointees. It's a big project as mayor mentioned, as staff mentioned.
If you double sided the pieces of paper, the stack would be that high for those of us who need paper. Everybody else uses thumb drive. But tremendous amount of work. These are the results of our hard work. We're recommending the distribution of almost $3,700,000 and you'll be happy to know that this recommendation was voted 100% unanimous across the commissioners.
Couple of highlights. We have two new charities we're funding. One is the City of Irvine I Care program, which is an outreach program with Irvine PD because the police are out in the field every day and they're able to identify those in need of an emergency shelter grant or like services. The second new one, the Boys and Girls Club College Bound program, that's new, and they're going to assist our high schoolers with selecting the right school, whether it be a trade school or a four year college, help them with the application, the essays, those kinds of things. So, giving them a hand.
The nine other charities that we are recommending are experienced. They've already done great things in Irvine, and we assume they will continue to do so. This is an example of where a commission does a lot of heavy lifting and we bring to you a recommendation. We hope that you'll respect our process and our efforts and that you'll approve the funding levels as recommended. I'm available for questions.
Thank you. If you'd just wait a moment. How many applicants were there altogether? And I want to make a point here, which is over the years, nonprofits, they come and they go. It seems to me we have identified a really stellar collection of nonprofits that we can rely on year after year after year, and they rely on us.
Is that a fair statement of where we've been with this We're 14
applicants this year. We're recommending the funding of 11 of them. The paperwork process is pretty inundating. There's a lot of work to do. So, some charities will get a funding one year and they just can't keep up with the work and they pass on it. Not stated in here, but we also fund a fair housing element as well. That's required by HUD.
Great. And everybody's happy? I notice
the Everybody wants more money.
But I notice I notice they were asking for a certain amount and were in fact granted that amount.
Some of them are very close to their ask. Some are a little distant. I can't speak for every commissioner, but I look at the financial statements. And if we gave them $50,000 last year and now on their financial statement they have $100,000 more, I would say they're not putting the money into the field. They're not buying the meals, the homes, the housing, whatever. So, I would hold that against the charity. They're not using the money in a timely manner. And then I also look at track record. And I look at did they do the paperwork on time or staff having to chase them.
Those are criteria.
And at these commission meetings, is there a fair amount of give and take or is that kinda behind the scenes that
There's some give and take, but most votes that we have at the commission, 90%, 95% unanimous. So, we give and take on all issues until there's a level of satisfaction.
All right. Well, I'll tell you what. Stand by here. I'll ask last call for any questions of Commissioner Tercel. Nothing further? Then I think at this time there are no further requests from anyone to be heard. Is that correct, Mr. Peterson?
That's correct, Mayor.
All right. I think it would be appropriate then for me to move that the public hearing be closed? Is there a second? Second. Seconded by Council Member Liu. Would the clerk please call the roll?
Council Member Carroll? Yes. Council Member Goh? Yes. Council Member Liu? Yes. Council Member Martinez Franco? Yes. Councilmember Trecedor?
Vice Mayor Mai? Yes. Mayor Agram? Yes. Carries seven zero.
Thank you. And with that, I'll move adoption of the staff recommended resolution, which I will read not because we are required to but I just want everybody to know what we are doing. A resolution of the city council of the City Of Irvine California approving the twenty twenty six-twenty twenty seven action plan and federal community development block grant home investment partnerships and emergency solutions grant entitlement programs. Is there a second?
Second.
Seconded by Councilmember Liu. No request to be heard. Would the clerk please call the roll?
Councilmember Carroll? Yes. Councilmember Goh? Yes. Councilmember Liu?
Council Member Martinez Franco? Yes. Council Member Traceter?
Vice Mayor Mai? Yes. And Mary Agram? Yes. Carry seven zero.
There we are. And thank you once again, everyone, for your hard work. And it's making a real difference in people's lives. We really appreciate it. Thank you.
That takes us to council business. Council business on this agenda tonight includes items 6.1 through 6.5. Which ones did we remove earlier? Item 6.2 was removed. 6.2, the Irvine Public Library Foundation proposed framework. Was that continued to a date certain? No. Just continued indefinitely. Just continued. All right.
And what was the other one? The other one was item 4.1, Mayor. Oh, that's behind us. Alright. We've got it. Then, items 6.1 through 6.5 on the agenda, not including however 6.2 which has been continued. With that, we will turn to item 6.1 with the clerk under counsel business please identify this item by title and subject?
Thank you, mayor. Item 6.1 is response to Orange County grand jury report regarding connecting Orange County to LAX, evaluating transportation options.
Thank you. I see we have very capable staff with us. Do you have a presentation?
We do have a brief presentation.
Thank you. We'll call on you then. Please identify yourselves, introduce yourselves, this subject, which is an important matter, although I don't think there'll be much in the way of debate about it tonight. Go right ahead.
Very good. Good evening, Mayor Agron and council members. I'm Mike Davis, the transit administrator for the city. With me is Kermin Lau, the deputy director of transportation. And, we're here to discuss the connecting Orange County to LAX grand jury report and the suggested city's response to it.
As background, on February 23, the OC Grand Jury released the Connecting Orange County to LAX Evaluating Transportation Options Grand Jury Report. The report looked at transportation from Orange County to LAX. It identified a reasonably affordable and reliable public transportation option to LAX using the Metrolink train to LA Union Station and the FlyAway shuttle to LAX. The cost for this is $23.75 combined. If you take Amtrak and FlyAway, it's $31.75 combined.
Both take about one point nine hours to do. While the grand jury report acknowledges the existing public option, they also looked at five cities in Orange County for potential direct to LAX services. And those include Anaheim, Irvine, Fullerton, Buena Park, and Westminster. From 2009 to 2012, Los Angeles World Airports funded and operated a fixed schedule flyaway bus service that went out of the Irvine Station. The city did not provide any funding for the service, but did dedicate a bus stall at the Irvine Station for use with the program.
The flyway offered six round trips per day, which cost at that time $25 per passenger. During the three years of service, the ridership was low, averaging 48 riders per day or four riders per trip. The service was terminated on 08/31/2012, leaving an operating loss of $382,337. The grand jury report offered one finding and one recommendation related to the city of Irvine. The finding, which was finding three, states, the Irvine Transportation Center is a viable potential location for direct bus service to LAX due to its location near South Orange County, freeway access, and multimodal connectivity, despite being 50 miles from LAX.
And, according to the grand jury's response options, the city can respond in one of two ways. Either finding that the respondent, we agree with the finding, or the respondent disagrees wholly or partially with the finding. Staff suggested the city answer with the first response. The respondent agrees with the finding. We would explain that the city agrees that the Irvine Station would be a viable potential location for direct bus service to LAX.
And, we would cooperate with an interested operator, helping with outreach and dedicating a bus stall at the Irvine Station for flyaway or other direct transportation to LAX. The grand jury report also includes recommendations. Recommendation five relates to Irvine and states, by 09/30/2026, the Irvine City Council should direct its transportation department to review the previous flyway service that ended in 2012, engage with Los Angeles World Airport's LAWA Mobility Unit or any other express bus service of their choice, and, upon receiving the City Council approval, submit a business case study to LAWA or other express bus service or services. This study should include projected ridership, financial sustainability, infrastructure readiness, and community benefits to support funding of the proposed service. The response options for the city, there are four.
One would be the recommendation has been implemented. Two, the recommendation has not yet been implemented but will be implemented. Three, the recommendation requires further analysis. Or, four, the recommendation will not be implemented. In preparation for the response, staff contacted LAWA flyaway staff and learned that LAWA is not looking to resume Irvine Flyaway service.
This is due to the Irvine Flyaway's low ridership when it ran, the fact that it operated at a loss of more than $382,000, and an expectation that resumed service would have continued low ridership. Also, fact that FlyAway lacks funding to resume resume service. LAWA indicated that they terminated FlyAway services in Irvine and other locations also due to the success and takeoff of ride share services like Uber and Lyft, changing transportation plans at LAX. And they also noted that they are not aware of any private sector interest to provide the service. And if you do look, shuttle van services now have all gone to group reservations only.
There are also challenges of driver shortages and wage increases. Staff has engaged LAWA. We've also been in contact to other operators to determine interest. To date, there doesn't appear to be interest to provide direct bus service from Irvine to LAX. Given the fact that LAWA is not interested in resuming flyaway service from Irvine, staff suggests the following response to recommendation five.
And that would be number four. The recommendation will not be fully implemented because it is not warranted or is not reasonable. We would then also explain that the city will engage with LAWA or other providers to discuss possibilities. With the city's limited transit funding, feel the city cannot pursue the business case study or funding for the service. Funding for a business case study or for operations of the service would need to be provided by LAWA or other interested party.
Since the prior flyaway service proved to have low ridership and ended in bankruptcy, the city questions its sustainability and likelihood for success, especially considering the prevalence of on demand rideshare services. If LAWA or other providers are willing to conduct this study and decide to resume direct service, the city will work with them on outreach and dedicate a bus stall at the Irvine Station for this purpose. And that concludes our presentation. We'd be happy to answer any questions you might have.
Thank you. Let me just comment very briefly. When did we have that service available? Was the early two thousand's?
That service ran for three years from 2009 to 2012. All right.
The city has grown significantly since then. And certainly the business community and the spectrum and transportation center area has grown tremendously as has the Great Park. My guess is this is one of those situations where the timing was simply not right. The service was terrific. Those who used it commented over and over how great it was.
They basically could get to LAX in about forty five minutes, fifty minutes, because they use the special designated lanes for bus service and so forth. I would hope that we would maybe just stay in touch with LA World Airways, see if there is renewed interest. And I think it might be worth speaking with some of the bigger businesses as well. I wouldn't invest a lot of staff time, but with the Olympics coming up in 2028 and with the continuing astounding growth of the business community, my guess is if there were a renewed service established, it would be very successful. But those are just my subjective views.
I did, I think, in reading the letter that we're sending back, appreciate you, massaged it a little to soften it so that it didn't indicate we're a hard no on any of this.
Yes. Yeah, think we, we are, we would be very interested in continuing conversations with whatever parties would be interested in seeing what could occur.
I think it might be worth talking to the Chamber of Commerce as well. I'll tell you, being able to get to LAX for anything less than $50 in a reasonable amount of time with free parking at this end,
I think
is unattractive service. Keep your eyes and ears open. That's my view of it. And I did read the letter and found it satisfactory. Presuming this passed tonight I will be signing that letter. Anything further councilmember James Mai.
Thank you mayor and thank you for the presentation as well. I'm just making sure here, we're just this motion and this recommendation is just to respond with option number four, which is basically a hard no. I'm glad it's a hard no. It doesn't take a they may do some things differently in Los Angeles, but in Irvine, we don't need to spend 80,000 to $100,000 to do a formal study to know that the program ended in bankruptcy and negative 365,000 So, thank you for doing the right thing here. And yes, I guess we got to keep our options open, but it doesn't look like things are going to change in the future for this program. Thank you.
All right, Councilmember Mai. Thank you. And no further requests. With that, I'll tell you what, I'll just are there any requests from the public to be heard?
No, Mr. Mayor.
There being none, I'll move staff recommended action to approve and authorize the mayor to sign the response letter to connecting Orange County to LAX Evaluating Transportation Options Grand Jury Report. Is there a second?
Second.
Seconded by Council Member Mai. With that, would the clerk please call the roll?
Council Member Carroll? Yes. Council Member Go? Yes. Council Member Liu? Yes. Council Member Martinez Franco?
Council Member Trusieder?
Vice Mayor Mai? Yes. And Mayor Akron? Yes. Carry seven-zero.
Let me also just take this opportunity to just thank you for all the great work you're doing with Irvine Connect and other efforts to bring our transit system up to where it needs to be. Much appreciated. Thank you. With that, we've disposed of item 6.1. 6.2 has been continued. Item 6.3, would the clerk please identify that item by title and subject?
Exploration of purchase of University Park Library property from County Of Orange.
Thank you. Welcome to our city staff here. Our director, Chris Lama and Julia Zioli, we appreciate you being here. We know you've been hard at work. And wow, we got to you at a reasonable hour. That's pretty good. With that, would you please further identify yourselves and this subject, if you would?
Yes. Thank you, Mayor Agrin, Vice Mayor Maying, City Council members. I am Chris Lama, Director of Community and Library Services, joined here tonight by our city librarian, Julie Zioli. So, we're here as a follow-up to a previous direction from council regarding exploration of the purchase of University Park Library property from the County Of Orange. So, just a little bit of background.
As a reminder, on 07/23/2024, City Council approved the transition of library services from the County to the City, including the assumption of management of the City owned Heritage Park library and a five year lease for the city or I'm sorry, the county owned University Park Library. And then, fast forward to 02/10/2026, following an item submitted by Councilmember Martinez Franco, the City Council directed City Manager and staff to continue exploring the feasibility of purchasing the University Park Library from the County, and returned to the City Council within ninety days with a comprehensive strategy outlining what the city's done to negotiate with the county. Following that city council direction, we initiated discussions with the County Of Orange regarding a potential purchase of the property. During those discussions, the county indicated that while they value the partnership with the city and support continued library services at the University Park location, the property is not available for sale at this time. As indicated in the current lease the county expressed openness to consider potential extension of that five year lease at an appropriate time in the future.
And I'll hand it to Julie for a bit more information.
Thank you, Director Slama. So, given these constraints, staff efforts have focused on identifying strategies including monitoring the lease timeline maintaining a collaborative relationship with the county and understanding market rates in order to prepare for future lease discussions and ensure continuity of library services. In the near term, staff will continue to monitor conditions and engage with the county and will return to this council with updates or recommendations as appropriate if circumstances change or new opportunities arise. To the extent negotiations occur, any proposed lease terms or agreements will be presented to City Council for consideration and direction. And so, tonight's staff recommends that the City Council receive and file this report.
Staff will continue to monitor conditions, engage with the county, and return to council if circumstances change or again if new opportunities arise. And that concludes our presentation and we are happy to answer any questions council may have. Thank you.
All right. I'll turn at this time to my council colleagues. Before I do, are there any public comments requested?
Yes, mayor. We have six requests to speak, five in person and one on Zoom.
All right. We'll hold off on those for the moment and hear from council members at the dais here, Council member Martinez Franco originally pursued this matter and has requested to be heard. So we'll happily turn to her now at this time. Councilmember Martinez Franco.
Thank you. First, I wanna thank our city staff, especially deputy director Julie Zioli for the work that has gone into this report and for continuing to prioritize uninterrupted service at the University Park Library. I also want to thank the residents and the community members who continue to stay engaged on this issue. Your advocacy has helped keep this conversation focused on what matters the most, protecting access to this library for the families, the students, seniors, and neighbors who relied on it. While I understand from the staff report that the county has indicated the property is not available for sale at this time, I don't want us to treat that as the end of the conversation.
The staff report makes it clear that the city will continue operating under the existing five year lease and that the county is open to discussing a possible lease extension in the future. That is helpful. But I think we need to be as proactive as possible now rather than waiting until we are closer to the end of the lease term. The report also refers to contingency planning should lease terms change in the future. So with that, I would like to move to have a motion.
I move to direct staff to conduct a professional appraisal and I don't know if you can put it up conduct a professional appraisal of the University Park Library land, ensuring that the valuation strictly reflects its current recreational zoning. Number two, secure real estate and negotiation to evaluate the property's market position. Number three, identify strategic actions to facilitate a future acquisition or long term lease renewal. Number four, report back to city council within ninety days with a summary of findings and options for further direction.
Is that your motion?
That's a motion, yes.
All right. Is there a second?
Second.
Seconded by Councilmember Treseder. Would you like to speak to the motion, Councilmember Martinez Franco?
Yeah, just
one Could you leave that on the screen, please? I don't see it here on the monitor. There we are. Thank you. Go ahead.
Yeah. No, no. I just wanted to make sure that we are proactive and that we continue negotiations. I know that the zoning of the land, it's recreational. And I know that we were thinking that if there was another lease in another library in a commercial space, it would have been $40,000 So, it doesn't make sense that if we were going to rent a space in a commercial space, now we are renting a space in a recreational place and from the county for $40,000 that doesn't make sense.
And I understand that there might not be we might not be able to negotiate the current lease, but if we appraise the land properly and appraise it as with the current zoning, then we can negotiate in future negotiations. Thank you.
Thank you. Councilmember Carroll.
Thank you, mayor. And I look forward to hearing from public, obviously, too. And I want to thank my colleague, Councilmember Martinez Franco, for really digging in on the University Park Library issue, our home library for the South Of Irvine. I guess I just have some quick can we get that motion back up, please? Just reading this for the first time as it was not circulated prior to this moment. Can we get some detail from staff as to how much it could be a Pete Carmichael question, I don't know. Sorry, you on the spot but how much would a professional appraisal of the site cost us?
Good evening thank you for the question councilmember carol. Usually an appraisal of this type somewhere in the 10 to $12,000 range.
I guess the other items I don' I feel like it would and maybe it's a question for the city matter. Do we have to secure real estate negotiation expertise? I think we have that in house with Mr. Carmichael and Mr. Torelli and others. But is that would that require additional putting aside staff time for a second, would that be additional cost?
I think we have the expertise in house to handle that.
Okay. And then strategic actions to facilitate our future acquisition, not sure what that is. Report back to the City Council, okay. So I guess I'd like to hear from the public. I want to save this library like everyone else. Some of us have heard the supervisor in the area wants to turn that site into affordable housing. I think she has since walked away from that due to protests from the neighbors. I would like to see that to be a library site permanently. The supervisor in the area refused to sell us the library, at least according to my understanding. I would love to support this.
I think given our budgetary constraints and the things we're about to talk to tonight, I'm not sure I could get there. I don't think a professional appraisal, as much as I think it's interesting, I'm not really sure what that's going to do. Let me just ask quickly, just try to get one more piece of information here from the public. The county said what? Can you just tell me, Chris, in one sentence what the county said?
Sure. Pretty much what I said earlier, they said they value the partnership and continued library services at University Park, but the property is not for sale at this time.
So, we have an owner. The owner is the county, Orange County, California. We have a that's a potential seller that doesn't want to sell. So, I don't really see the kind of especially given our budget constraints and that we may have a structural deficit and everything we've been talking about for the last few meetings, I'm not sure why we would expend those funds. Although I'm absolutely supportive of this and doing everything we can, including perhaps a letter from the city council to Supervisor Foley.
I know we've all spoken. I would imagine we all have. I can tell you about my personal conversation with her about it, where she told me that the city got swindled by the county, but that's a different conversation. But she did not express to me any interest whatsoever in selling us this library. Know, people call me out constantly all the time.
I think that we need to make a full court press on our supervisor. I've spoken to the other supervisor that represents Irvine, Supervisor Wagner. He doesn't represent this area. But I do know the way the county works, the supervisors have extreme and strong influence with the county CEO for the matters that occur within their district. If you think about Orange County just as a perspective, especially for the library advocates, of which I'm one, the County of Orange, if it was a state, by population would be the twenty third largest state in the Union.
So, like I like to joke with Supervisor Foley and Wagner and others, every county supervisor is like the equivalent of 20 state senators in another state in the union in that sense. So I think we can really put the full court press on it without having to spend city dollars, but I really do appreciate the effort into really having Irvine essentially flex and tell the county what we want with respect to this library site. And I'm all on board for that. I'm not sure I'm on board for spending Irvine taxpayer dollars on an appraisal to send to a party that doesn't want to sell me anything. With that, I look forward to what everyone else has to say. Thank you, mayor.
Thank you, councilmember Carole, councilmember Martinez Franco, and then councilmember James Mai.
I completely agree with council member Carol. I don't want to spend continue spending tax dollars that we could have saved a long time ago. $40,000 a month, that we shouldn't be paying. And we could we cannot moving forward another twenty years paying $40,000 a year. So I prefer to pay $10,000 now and keep on saving millions and dollars of taxpayer money to our residents.
We will save money in the future and that is our goal given our predictions of losing even 40 something million dollars in the future, if we do this negotiation right in the future, even if it's a lease, we are gonna save millions of dollars of tax payers. So, 10,000 for an appraisal now is a good investment for the future. So, I'm for it.
Thank you. Council Member Mai.
Thank you, Mayor. Hear both sides here. I'm very interested in purchasing University Park Library as well. But the situation that we're in right now is that we have a landlord or a property owner that doesn't want to sell it to us. And has said specifically, if I heard you right, Chris, is that they will never sell it to us.
The the message actually was it's not for sale at this time.
Not for sale at this time. So we have a property owner that doesn't want to sell it, to us and wants to lease it to us, at this time, maybe indefinitely. Who knows? If we do get an appraisal, it will cost us money. Appraisal in hand is just going to say, hey, this is how much it's worth and we negotiate from there. I mean, I don't see the value in that. I mean, I think we need to negotiate without that appraisal because if they're not going to sell, they're not going to sell it for whatever reason. They'd rather just collect rent on it from us. How much is the current rent right now that we're going to pay or the projected that they are proposing?
We're currently paying $40,000 a month and there's a 2% escalator each year of the lease.
Okay. I can see why they don't want to sell it. Let's hear from the public.
Thank you, Council Member Mai. No further requests, so let's, yes, turn to the public at this time. Mr. Peterson, how many requests are there to be heard?
Thank you, mayor. We have six requests in person and one on Zoom.
All right. Each of those will be given up to three minutes. And keep the queue open just for a few more minutes. All right?
Thank you, mayor. If I could call forward Adam Talavas, Alison Walter, Leigh Handy, Michaela Montaner, Mike Stockstill, and Mona. And we'll start with Adam.
Well, evening, Mayor, members of the council. I am Adam Thiambis. I'm the district director for vice chair Katrina Foley of the Orange County Board of Supervisors. She's very proud to represent this community on the board, and she wants to first thank the Save the University Park Coalition, the mayor, and council members for your advocacy. But also, be clear, to set the record straight, supervisor Foley has never wanted this land to be anything but a library.
Let's be very clear here. We are always here and available for open dialogue with city the mayor, city council members, the city manager, and staff. Supervisor Foley shares your commitment to protecting this vital community asset and to ensuring uninterrupted library services for Irvine residents, While supervisor Foley serves as one member of a five member board and cannot speak for the whole board, our office supports moving forward with a long term lease extension for University Park Library. Supervisor Foley stands ready to assist and help and facilitate discussions with the county if the city of Irvine formally requests to enter into negotiations regarding a long term lease extension for the property. Thank you.
Thank you for your comments. Alison, welcome.
Thank you so much. Thank you for all that you do and for the past meetings I've seen. You are very brave. Alright. My name is Allison Walter, and I live in Village Park. I've been an Irvine resident for twenty years. I have two grown sons who love Irvine, and they especially love, just like their mom, University Park Library. I'm also a founding member of the Coalition to Save University Park Library. Last week, we sent a letter to you all with three points I would like to reiterate this evening. First, we made UPL at risk of closure until a long term lease or other solution has been confirmed.
Please know that our coalition will continue to be active until such a solution is finalized. Second, we sincerely appreciate that in the staff report, deputy director Julie Zioli says maintaining uninterrupted library service at UPL remains a priority for the city and that staff will strategically plan for early engagement on potential extension discussions. We ask that staff clearly clarify with a date when they intend to approach the county to discuss a lease renewal, at least at a lower sum. Third, we strongly encourage you to make a motion in support of conducting a property appraisal, engaging a professional negotiator, and taking any other actions you and staff see fit to improve our negotiating position with respect to both the UPL buyout and lease renewal. Thank you so much for your time.
Thank you for your comments. Lee Handy. Welcome.
Thank you. Good evening. Alice and I did not coordinate, so you may hear some of the same sentiments. But I'd like to begin by saying I want to thank the mayor, the council, and the staff for addressing the issue of the future of University Park Library. An issue dear to the heart of so many of us.
That's why you keep seeing us up here week after week, and I really do appreciate the attention you've given to it. It was heartening to read in the staff report that maintaining uninterrupted library service at this location remains a priority for the city. Thank you for confirming that. I really do appreciate seeing that in the staff report. Nonetheless, continuation of the library and University Park is in jeopardy because the current lease expires in about four years.
There are at least two, and others as well, but two possible courses of action available. The city can attempt to negotiate a long term lease, or it can examine whether it's feasible to buy the property. However, there is one crucial action that in my estimation needs to occur before we enter into any negotiations with the county. We've already heard counsel speak to the issue of having an appraisal, a professional appraisal. But in my perspective, a high quality comprehensive appraisal of the value of University Park property must be done.
The appraiser should have expertise in evaluating properties for commercial uses, such as retail and offices, and for public uses, such as for a library or nonprofit because the standards for each are very different. As we all know, we are right now paying a market rate of 40,000 a month. But I believe that, and with the 2% annual increase. However, properties for public uses, which is what I believe the library is, can have nominal or below market rent which prioritizes not the profit but the benefit to the community, which is what we all care about. Appropriate standard should be applied to the University Park property.
And we need to research this before entering into any future negotiations with the county. On another subject, it's also important before we negotiate again with the county to know whether the UPL property would be subject to the surplus land act, which would require the county to prioritize affordable housing.
Thank you. Your time is up.
Why don't you just take fifteen seconds to finish your thought?
Well, the surplus land act would require the county to prioritize housing before selling land it no longer needs. If we want to buy one of the roadblocks might well be that. However, I spent some time researching that act today and there are a number of exemptions to it, including the size of the parcel, which we might fall within.
Thank you.
Again, I thank you so much.
Thank you. Thank you for your comments and your hard work on this subject. Ms. Monteneira? We never get that. Welcome.
Thank you. All right. There's so much to tell you. Yesterday, we had a really productive conversation with councilor, Vice Chair Foley and her team, including Dylan Wright, is the Director of Community Resources for Orange County. I'd be happy to speak at length about the substance of that meeting at anyone's request.
I have two minutes and thirty seconds, so there are a few points that I want to make in light of the motion before us and some of Councilmember Carol's great comments. Before I do, I do want to acknowledge Vice Chair Foley for taking the time to speak with us. And, again, Dylan Wright, they were very generous with their time and their expertise and attention to this matter is truly impressive. So I encourage all of you to avail yourselves of their their generosity of time and information. And I also want to acknowledge the effort of community members who are not typically with us in chambers.
We have a crowd of people who did not want you to think that they are not watching from home. We have we have many people, including the preschoolers who signed that We Heart UPL because they're tired of their parents talking about their library maybe not being around. Alright. Moving along. Shout out to Ali, my daughter.
I think one thing that we don't want to lose here is this appraisal needs to consider permissible uses and include some legal opinion about some statutes the county has explained to us that are justifying the use of market rent here. So, what we're hearing is that because, I'm gonna probably not get this perfectly right, but because a lot of these funds that are being used are from the state library funds, there's some rule about if they're not running the library, their counsel has advised them that it needs to be charging a market rate, and I would welcome Mr. Melching or another legal opinion on that to make sure that it's not been misinterpreted. I believe there will be a return on investment with the appraisal. The county is very confident in their valuation of, or I was, my impression is the county is very confident in their valuation of the property.
I've spoken with real estate developers of great credit who disagree with that valuation, and I wager that there's a discrepancy that we might be able to exploit in these conversations should you be team buy. And, certainly, if you're a team lease or team walk away, I don't think there's any harm in this appraisal. I think it will clarify and justify myriad of positions. I would love to hear more about what supervisor Wagner had to say about the UPL situation, should anyone like to elaborate. And I would also like to also point out that there will be public
Your time is up.
Public relation
Just take a few more seconds, if you would.
Thank you. Much the same way community input has changed the narrative from the county, or at least perceivedly, because Katrina has maintained that, or Supervisor Foley has maintained that her support in all her conversations with me. But, I will say that the, we've made great progress in terms of communicating our issues, and if we have an appraisal that clearly lays bare for the community what is up, we I can promise you I will make good use of it one way or another. So thank you very much for the time.
Thank you for your comments. Mike Stockstil. Welcome.
Mayor, council, Mike Stockstill. I live in Northwood. I'm feeling clairvoyant tonight. I came to speak about the previous issue, and let me just read my comment. I got half of it right.
I recommend that you table the plan before you, that's the foundation, and await the selection of the Irvine Library Advisory Committee this fall. At that time, give the advisory committee the assignment to explore how to stimulate the formation of an independent library foundation not connected to the city. And that's the essence of my argument that I will pass along to the appropriate staff. I am fascinated by what is happening though with the library. I guess my question is why don't we just condemn the land? Is that possible? Does the city have the condemnation power?
The county has more power.
I don't know. I'm sure Mr. Melchin could come up with a good decision. Well, I'm happy to call Katrina. I know her. I've supported her for a long time. I have to believe there is a political solution to this and it's going to be done politically not at the staff level. Katrina may not be around in four or five months. There is going to be two new supervisors as we know. So, I'll be sending comments about the foundation along. Thanks for your time.
Thank you, Mr. Stockstil. And thank you for thank you for all your good work documenting the history here that we've been a part of. So thank you. Mona.
Hi again. I want the three minutes back to the general comments because it's never enough time to say what we need to say. An appraisal at this point makes no sense. Why spend $10,000 $12,000 on an appraisal when you have a seller that doesn't want to sell? It makes absolutely zero sense. We can't do this. We have an appraisal today. Great. We spent 10,012 thousand dollars for it. Well, in a year, we're negotiating with them.
We're going to need another appraisal. So what's the purpose? There's no purpose whatsoever. The other thing that everybody seems to be talking about is if it's just the land thing. The lease is just about the land. But we are leasing more than the land, aren't we? We are also leasing equipment, what's inside. So this is not just like a real estate deal. You're just looking at a building. You walk through, it's empty.
We are actually leasing what's inside as well. So how do you want to make how do you want to do an appraisal now? Makes no sense. We're not in a place where we can do that. And every dollar that we save is important As we know from the meeting on Tuesday, we are not in a good place.
And that all of the things that you guys come up with that you want to spend towards, you have to think about where that how much it's going to cost. We've seen this over and over again. You vote you wanted ranked choice voting. Nobody checked into the price before they presented it. You are doing this over and over and over again. You keep on coming up with things. Oh, I want to do this. I want to do fireworks. 600,000. No big deal.
I want to plant flags all over Irvine for 250,000. No big deal. Those are big big amounts that are being thought about and you guys are responsible. You are responsible. You're fiduciaries.
You are the ones that are going to make these decisions. But most of the time, you're not listening to us. And we need you to listen to us and look at us when we speak, not look into your phone or your computer or whatever. You need to value your residents. I'm tired also of the fact that this, oh, I'm getting abused by the mayor. I'm getting abused blah blah blah. Not a problem. That's not happening. The abuse the one who's claiming abuse is the one who's abusing. And the caffeine, stop throwing people under the bus. Grumby, you're next.
Thank you. Your time is up.
Thank you for your comments. J. Bruce, and you have ninety seconds. Welcome, Mr. Bruce.
Hello, council members.
I just
want to say I appreciate that you weren't answering for your desire to keep University Park running. I think that's a desire shared by everyone here. But, I do think regarding this motion that councilmember Carroll, you're spot on. I mean, looking at this practice practically, the county has not been receptive to a purchase from the very start of discussions before we even operated any libraries. And, I mean, just thinking a bit practically, I mean, an appraisal, I'd be surprised if it doesn't come in at least a few million dollars, maybe like tens of millions of dollars, and I'd be surprised if the county accepts any amount less than that.
I mean, that's just money that we don't have. I mean, that's a fact that anyone knows. So, I don't think it'd really be productive to spend our efforts on that. I just don't think about purchases in the works on the county or city side in the near term. I think that rent discussions might be productive, but I think if we really want those sorts of larger decisions by the county this needs to be an issue.
I mean this is an issue I talked about before when this was discussed, but this is something that the city council should really be leading negotiations and not the city staff because when city staff are negotiating with county staff the county staff aren't just going to agree to sell off county property. This needs to be something that the city council members are communicating our desires to the supervisors for, to make sure that they have actual power in those negotiations. Thank you.
Thank you for your comments.
Our next speaker is Eric Nashanian. Mr. Nashanian, you may unmute your mic.
Thank you, Councilmembers, Mayor Agram. I just want to correct the record. Last meeting, Kathleen Crusader said that it was Larry's idea to take the libraries back from Orange County. It wasn't. It was Tammy Kim's idea.
I'm not sure if Larry voted on it, but I want to say that we're here now because there was not any forethought before this passed during the previous City Council that passed it. I don't think this was ever discussed about what it was going to cost us, but with regard to budgetary restraints as far as property maintenance and leases and that kind of stuff. So maybe this should be added to the audit also as far as what it cost us to remove ourselves from the library system. The way you're going to make the county try to sell that property is by making it look like you're going to go elsewhere. This should have been tabled or removed from the agenda.
It's a waste of your time. What you guys should really be talking about is, is there any open space that you guys can use to maybe open up a central library and at least take some control back from the county where you're not wasting resources, money and the like? That's what you guys should be talking about because that's the only way you're going make the county interested in selling to you or maybe negotiating the lease again. You guys put yourself in a dead end situation here. Maybe the Great Oak would be a great location for a central library.
But this should have gone through commission also. This should have went to the Finance Commission and the Planning Commission and those things before it came here. It was not this is not ready yet. It was not seasoned to discuss because it's a dead end. Until you make the county think that you have another option, they're not going to deal with you. They're going to
take your money. You have no leverage.
But Larry didn't this was not Larry's idea. This was Tammy Kim's idea. Who voted for it? That's what should be audited. How much is it going to cost us? That should be audited since we're doing this selected audit stuff. Thank you. And
that is all, Mr. Mayor.
Thank you, Mr. Peterson. I have three requests here. I'll start with Councilmember Carroll, then Councilmember Martinez Franco, then Councilmember Tresidar. Councilmember Carroll.
Thank you, Mayor. Just a couple of things, and maybe a friendly amendment to my colleague and Mr. Carmichael, if I could ask you, as our resident real estate expert, if I could ask you one other question as you're walking up. I just wanted to say, with regard to timing, and this is just my opinion, four years left on a five year lease, and I know it's a little bit of a disagreement with one of our speakers, but is a long time. It's four years in corporate transactional real estate speak.
That's a pretty long time to try to get a result. Second thing I want to say is I just want to clarify a little bit with our supervisor. I probably came out a little too hard there. I think that our supervisor does advocate pretty darn hard for our district, that'd be my supervisor, Supervisor Foley. And with regard to the Surplus Lands Act, that is a real land mine, a real thorny issue.
We dealt with that a lot with the Great Park real estate. Doesn't mean that the county and the city can come together in good faith on a mutual agreement to get something done a longer term. It may end up being an extension of a lease where we'd rather probably have the real estate. And again, the source of the funds that we would use to buy the real estate, of course, is a completely separate question. But really, for Mr. Carmichael oh, and I apologize for not making your event. I was moving my daughter out of her dorm. I don't know. I think some of you know that. Okay.
And that would be the 19 year old that spent her first eight years in the children's section of the library we're talking about every Saturday. So Pete, one thing that maybe if you could just educate the council, and I don't expect everybody to understand it or know it, but and this is a council initiated motion, so that's why staff's not probably recommending it. But short of them at appraisal, short of spending taxpayer dollars, we can get what's called a broker's opinion of value, what's called a BOV. It's very common, and you all don't have to take the political guy up here's experience. We can listen to the staff, our real estate a resident real estate expert.
Can you just talk a little about what would be and if you don't think this is an idea, just please no pride of recommendation, authorship anywhere, Pete. But if you think that could potentially be a solution that won't spend money where we go out to, you know, real Cushman and Wakefield, Jones Lang LaSalle, real brokers that work in our community, and get a BOV. Could you just spend a second on what that is, what that might cost? I think I know the answer. And what that would be compared to an appraisal?
Yeah, happy to. A broker opinion of value usually a less formal version of evaluation on a property. So, appraisals, as you may know, usually follow a very prescriptive set of steps and can only be performed by a licensed appraiser. Oftentimes, brokers are in the market, they see transactions, they have a very good handle on what's going on, and can give you a less formal opinion of the value of a property in usually a shorter period of time and for less cost.
Any idea around the cost of a BOV, or is that something that we can maybe get on the house, given our relationship with real estate brokers?
I think it's potential. Certainly less. I don't know off the top of my head. But sometimes, they'll do it for the relationship, future business. Sometimes, it's a set fee, but something significantly less than an appraisal.
Yeah. Okay. Great. Well, I appreciate that. Well, if I could, through the chair, to my colleague making a motion, if we could possibly consider a friendly amendment that in lieu of a professional appraisal that we seek and direct our staff to see if they can get a broker's opinion of value that would provide some support and some numbers to the community and everybody involved here. And I believe that's probably something we can get, if not for free, practically for nothing, since we do use brokers, and we have used brokers for some very extremely large real estate transactions in our city. But through the chair, if that's Why
don't I see if the maker of the motion would accept that suggestion?
Am I allowed to just make clarification before I speak to your so a few things. This is just to report back. This is not to go ahead and just get it, like just report back before you get it, right? This motion is not going to just go get the appraisal right now. But one of the things that I'm asking you this, and probably I wouldn't have asked you about the appraisal, When we met, I asked you in the presentation, please come with appraisal.
Sean told us that it was really hard to do an appraisal with real estate versus recreational. So, there's no apples to apples to compare. So, that was something that I asked you during to bring in the presentation. The other thing I ask you, that there are some council members here sitting that went through this process. They approved it.
Although a lot of them probably were close negotiations when they approve it. But I wanted the history on how did we get into this lease. And you say that you were going to provide us some history on how did we get to the lease. So, we didn't have any of those. Therefore, the motion is there. So, with those points, I don't know if you still want to do your motion. And first, I want explanation from the staff why they didn't bring back the appraisal that I asked to bring. And it was just appraisal that you guys did already.
Wait a second. Is there a question of our staff about an appraisal? I'm trying to conduct a meeting and understand what's going on here.
I made a friendly amendment.
Yes, you did. There was no response to that. At least not a direct one. Council member Martinez Franco, you're now directing a question to staff. And what is the question of staff?
That I asked them to bring an appraisal and maybe it was appraisal that was done when the negotiations happened. So, we didn't have to spend any money. And again, this motion is just to bring back in the recommendations that you're going to bring us with the appraisal including, and recommendations on acquisition or long term lease So, this is not going to be let's go buy it or let's go long term lease renewal, let's find out. Again, I know negotiations doesn't take one year or two years. And maybe there is an opening to negotiate at long term lease starting next year.
Councilmember Carroll, I'll come back to you. This is really veering off. The motion incidentally, is right in front of us, is to conduct, direct staff to conduct a professional appraisal. I just want to be clear. That's the motion. Council member Carol has made a suggestion, no, not to conduct a professional appraisal, but a broker's opinion of value that would basically be a little different from the first point in the motion. Is that correct, Mr. Caro?
Well, point of order. I haven't finished my comment here, and staff hasn't answered the question that I asked.
I'll recognize your point of order and grant you the latitude. But the discussion about what went on historically by way of an appraisal, I don't know. Go ahead if you wish to answer that. I'm, I'm not sure if it's relevance to the motion at this point.
Sure. Thank you, Councilmember Martinez Franco. I think the short answer to that is, is the previous council direction ninety days ago was, was to come back and report on the negotiations with the county in terms of the sale. And, and they told us it was not for sale. And so, what we want to do is come and report on that, as well as what we would do kind of looking into the future. I apologize if I misunderstood that direction. But, again, if this is the direction the council is looking for, then certainly I think we can work with the city manager's office to go ahead and do that.
Well, I'm consistently being told that I don't need to put a memo to put something, that I can just request the staff to do something that is not going to cost money, that I can request the staff. So this tells me that everything has to be put on memo. Everything has to be on record from now on. And therefore, I don't accept the substitute motion.
I'm sorry, what was that last point you made? Is that a no? You said
All right. Let's just move on here for a moment. Councilmember Carroll, I didn't want to cut you off. If you're done, I'm going to move on to the next speaker.
Yeah. I have a few more minutes, but I'll just take less than a minute. Thank you, Mayor. I would just say, Councilmember, that if we're we may be in a more in alignment than you think. If number one is no expenditure of taxpayer dollars, then I'm happy to vote yes with you on all four items.
But number one appears to be an expenditure of taxpayer dollars, and I just think given our budget ary situation with a structural deficit and everything they were supposed to get back in ninety days, I just can't see through. I just thought a broker opinion of value, I was just using my expertise and my background to try to plug something in that could do the same exact thing. And again, I would just say the seller doesn't want to sell right now. And I think, in my humble opinion, that spending taxpayer dollars on a professional appraisal is not a wise expenditure of taxpayer dollars, especially at this time. And if we really as one of the speakers talked about the political solution, if we really do feel that four years left on the lease and I guess I could be persuaded, but I think that's all and we have a real estate expert and council member Go who could tell us.
But four years left on a lease is a pretty long time. But if it's not, and it's not sufficient for the community, then, you know, I'd be happy and willing to serve, although I don't need to. But Council Member Martinez Franco and whomever, you know, we've formed subcommittees in the past to solve things, we can go full court press, starting with Supervisor Foley and work on the Board's supervisors. But I just, you know, I don't, I think a broker's opinion of value makes a lot of sense. I won't make a substitute motion. I don't want to appear hostile council member. But I think that's the better approach. Thank you.
Thank you.
Mayor, if I might chime in. Apologize if there was any miscommunications about direction in the past. In discussion with our city attorney, there was an appraisal done two to three years ago based on the valuation of the lease that was established through our city attorney's office. So, we will dig that up and provide it to the council as soon as we possibly can. Although it is dated more than two years ago, we will locate that.
Thank you, Mr. Crumby. Council Member Trusieder.
Thank you. I appreciate all the discussion here. I'm in favor of council member Martinez Franco's motion. I think it could be a very worthwhile use of funds. Say it costs $10,000 to do an independent appraisal compared to what we are spending every month for rent for this library, again $40,000 a month, if we are able to save any of that money it could pay for itself pretty quickly.
Now, I take Mr. Tayaba's point about the supervisor being willing to offer a twenty year lease potentially, and to me, this seems like a really great opportunity to try to renegotiate this lease agreement that we have. And I think having an independent appraisal would be very, very helpful for this. It does give us something in our toolbox to work with. I do have to say that yeah, leaving the OC libraries, in my opinion, was a mistake.
I voted for it to be sure. In terms of the votes I've taken while I've been on council, I can count on maybe one hand the votes I regretted, but that is very much one of them. That's that's at the top. The problem is that, at the time, I was not given the true information about what the county was willing to do for us, the money that they were willing to actually spend in the city, and also many aspects of the agreement. I was given over and over this bad information, unfortunately, by the previous city manager.
And so I respect councilmember Martinez Franco's concern in wanting to understand what happened. I also want to know what happened. And I think that just getting a true appraisal of this property could really help, assuage some of my concerns. Anyway, thank you.
Thank you, Councilmember Traceter, Councilmember Liu, then Councilmember Mai, then Councilmember Goh.
If you don't mind can you let me know how long the Katie wheeler leases? I think it is three years when does it expire? I guess it is more important when it expires.
Thank you councilmember lu. The three year lease for the Katie Wheeler library began in January. It will expire three years from then. So, December 2029.
And what about University Park?
University Park was a five year lease that was signed. That lease was activated in July 2025. So, it would expire in, June 2030.
June 2030. I tend to agree with some of my counsel colleagues on the timing of this matter. I'm assuming both lease agreements contain a renegotiation clause that we can start maybe six months. Is that correct, if my memory serves me right? Okay. Yes. Sorry. Yes. That's correct. Okay.
So, yeah, I understand that investing a little bit of money to save something something bigger, that that sounds like common sense. But my question is, we've all taken the call from some realtor asking if we're gonna sell our homes. But the question is, we're not. So, we're talking about a landowner who is not willing to sell. So, I feel like the timing of this is a little premature as much as I want to save University Park and as much as I want to save Katie Wheeler, same thing.
My concern is by putting in this money right now to get this appraisal, market rates may change. This is a unique property. This is really hard for us to to to evaluate. I mean, council member go and I both have brokers license, so we all have to learn a little bit about appraisal. And I agree with councilmember Carroll on having a brokers valuation opinion will be a lot cheaper.
But my concern is one is a unique use unique land. Two, it's the timing. It's too early. What if there's changes in in market conditions? And then we're gonna have to do this all over again.
If the supervisor is willing to help us look for a long term lease, I believe she's committed to it. And, again, we could talk to all five of the supervisors and try to lobby. And all of us, I'm sure, on the dais are willing to do that. So I I I just question what the timing is in in whether this $10,000 or $20,000 is worth investing at this point in time. And congratulations to your daughter for finishing her first year.
I just went up to pick up my daughter for graduating from college. So, to miss the party, but we both had something to celebrate. So, that is some well, another library user. So, yeah. So, we are very willing to help. But, it's just the timing is premature, in my opinion.
Thank you, Councilmember Lu, Councilmember Go, and Councilmember Mai. Go ahead. Councilmember Gogh.
Thank you, Mayor. I generally agree with getting an appraisal. But typically that happens when two parties have an agreement. One-sided appraisal would would not work in this case, unfortunately. I would like to go back and maybe make a friendly amendment to pre negotiate some terms with you know, in terms of the the rent factor with the county and agree upon some predicated numbers.
Like, if the lease comes out at this or the appraisal comes out XYZ we both agree you know we'll hire a second appraiser and we'll average. So, that's typically how it works and I'm supportive of that rather than just hey let's do a one-sided appraisal and here is my take in the value of the lease reassess the rent factor I think that would be foolish in our end. If you guys would agree to the amendment of perhaps going to the county first and pre negotiating some type of term based on that appraisal that the rent factor would be adjusted lower if the agreed upon terms came about at such price. That would be my ask.
Just so I can keep some kind of procedural order here, are you asking that the motion be amended that there be acceptance of a friendly amendment?
Correct. We would do a professional appraisal once we approach the county and have agreed upon that we would readjust rent based on this appraisal terms. So, you're suggesting that item one be changed in that regard. Is that correct? Correct. It's just a prerequisite. Work with the county first. I understand. And pre agree on something before we go spend the 10,000 or $15,000 on the
I understand. So, is a suggestion of a friendly amendment. Councilmember Martinez Franco, I'll call on you to ask if you're receptive to that at this point.
Can I call Michaela to ask her a question really quick?
Can you what?
Can I call Michaela to ask a question about her conversation with Supervisor Foley?
Okay. Go ahead.
So I just wanted to know through your conversation, Supervisor Foley was open to negotiate long term lease early?
Yes. So, we specifically asked what the appropriate timeline is for this lease conversation when we were talking under that heading. And she said that in her estimation, it would make sense for the city of Orion to pursue something like a twenty year lease and that she would entertain that conversation anytime you guys wanted to have it. And Dylan Wright said specifically if you just want to sort of play it slow or like typical that it would be they would expect that conversation to start no later than two years before the expiration of our lease.
Thank you. Thank you, Michaela. Now going back to Councilmember Goh. So since they are open for negotiations, they don't they need appraisal to go and just to negotiate? They are already open for negotiations.
They wouldn't need an appraisal for the negotiation. But as part of renegotiation, that's the time when, you know, if we want to extend the lease, we want to mention, yes, we'll extend the lease, but do a professional appraisal, and we will tie the lease price for the extension based on that professional appraisal. So, that's when you would bring it. Not prior to.
Okay. I'm open to the Friendly Amendment. But let me see. So, that will be first. Then go to Supervisor Foley and tell her that we are open for negotiation.
Right? So, how will be the friendly amendment? Can you repeat that for me?
I would just put a condition that we would request the professional appraisal upon working with the county prior to some agreement on a value based on
that professional appraisal. Okay. That sounds good.
All right. You accept that? Who seconded the motion?
I did and I accept.
Councilmember Cecilia accepts it as well. Councilmember mye and then I' going say a few words. I think we should move on if we possibly can. Councilmember Mai.
Yeah. Thank you, mayor. Yeah. And I think this is a good outcome here. I think we could have got here sooner as well. Property is not for sale. Let's negotiate the lease. They have the lease. They want us. They are even talking about a twenty year lease. They say they support Irvine. Let's make them prove it. We have three lawyers up here, three business people and one professor. I think we can do it. So, I'm glad that we're going to negotiate with them. And the county needs a lease, so maybe we can get a better lease deal. I mean, twenty years is great too. So, I'm glad we're here. So, I'll be supportive of this.
Alright. Councilmember Carol, you want to hear from me first?
Well, just want It's really just a clarification. So the new if I vote yes, am I voting to have the city conduct a engage an appraisal and conduct a professional appraisal? Can we get that clarified?
Sounded to me like there has to be further discussion with the county first, which, let me make my comment if I might in responding to you.
Well, I just have
to know if I'm voting for taxpayer dollars being expended or not. If somebody can clarify that. I want the answer before I vote. Thank you.
All right. Let me just comment here a little bit. There's going to be an election June 2. All this talk about what supervisor Katrina Foley said or didn't say or whatever, she may not be our supervisor by the end of this year. Who knows?
If she is, great. I would say that really taking just a little bit of time, talking to her, not trying to take any definitive action now, Speaking with her after the June makes sense. Let me just sort of give my impression too. This has been a useful discussion. I mean, everybody wants the same thing, which is an enhanced library system, library services.
Unlike council member Treseder, I'm not in the slightest bit sorry that we broke away from the county. The service that we were getting was outrageous. You couldn't even get a damn light bulb replaced on request by the county. So, they were not a an easy negotiating partner in all of this and trying to, throw the previous city manager under the bus. I salute him for having pushed me and others into the idea that it was time for Irvine to have its own independent library system, getting the best deal that we could, and transitioning as quickly as we could.
I want to pause for a moment to thank everybody who has been involved in the transition. This is a Herculean task that we move forward. We do have a master plan that is going to be in the works that will inform us in so many ways about insights we might have for the future of the library system, and incidentally, how to fund them. So, I understand the impatience that people have and the concern. Believe me, we are involved in so many deals with the county, negotiations about this, that, and the other.
There is absolutely no doubt in my mind that we will have productive discussions about this item over the course of the next year or two. I don't want us to be basically negotiating with ourselves and publicly sounding like we're desperate. This library will not close. It will not be closed. So my feeling is, should we poke around and try to get a little information now?
Yes. But do we really want to almost beg the county to negotiate with us? No. That's not the kind of negotiation I would recommend to anybody. So while this motion, if it's passed, as I understand it, it would just open up a near term further channel of communication with the county to see if there is interest in negotiating lease terms or whatever.
I think that there might be a possibility the response that you got back was the county did not want to talk about selling the property at this time. I think we need to take them at their word. Might they wanna talk about different lease terms? It's, as far as I'm concerned, an appropriate line of questioning to pursue with them. So I think if we just kind of, if we adopted this and maybe Council Member Martinez Franco, maybe you could negotiate with the supervisor not negotiate, but speak with the supervisor or with our staff and the supervisor, fine.
But the idea that we're desperate here is not an idea we want to convey, because I don't feel desperate at all. And again, I want to salute everybody who's been involved in the transition. We're on our way to building a terrific library system here in Irvine, a library system that we never would have been able to get had we stayed with the county. So, with that, Councilmember Liu, then Councilmember Mai, then sounds to me like we might be ready to vote on the motion as I understand it. Councilmember Liu.
I have the same question that Council Member Carroll had about what exactly was amended. Are we renegotiating the rent?
We sounded to me Well, can actually get the wording of the friendly amendment as accepted. But it sounded to me like, let's talk to the county about a rental, a renegotiation on the lease of some kind, at least opening the door to that discussion before going out and doing any appraisal business whatsoever?
Right. So, are we voting if we vote yes? Are we going straight to a professional appraisal if county agrees to renegotiate the lease? Or does it come back
for own feeling is should
be brought back to us, of course. I mean, if there's some kind of a breakthrough with the county we're talking with the county every day about a myriad of issues. But in this regard, if there's some kind of a breakthrough, sure, bring it back and we'll put it on the agenda and we'll talk about it.
Okay.
Did I misstate your friendly amendment?
No, it's accurate. We would work with them. I think our city attorney would like to add in something. There's no,
nobody's running out and doing an appraisal. Is that correct?
I think that's correct, Mayor. Would you mind if I try and state what I think the motion is?
Staff Please
is going to actually have to do this after tonight, assuming it passes. First is we're going to commence a dialogue with the county about a lease extension. The rental amount is going to be one of the things that you're going want to solve in that negotiation. It's not the only thing. You're want talk about taxes and insurance and the use of the property and how the community rooms access is shared and maybe the hours of operation.
All these things, a lot of them are in the current lease, maybe some of them are working, maybe some of them aren't. It's a big discussion. A lot of issues that get discussed. Rent is one of them. As part of the rental discussion, once we are having a dialogue with a county, that's the right time to start talking about the valuation of the property. And
reason you value the property is because you can derive a rent from the value of the property. The reason that you do that once the dialogue has begun is because then you don't end up fighting with the county about the assumptions that go into your valuation analysis. You talk about them before you do the valuation analysis. Then you agree with
county, subject to caveats and out clauses, that the valuation is going to help set the rent. So whatever the value of the land is, you're going to back that into a rent, and that's going to set the rent. That's how that process would work. Now, how does that translate to the motion? Step one is begin the dialogue.
Step 2a as part of that dialogue is figure out what the parameters of this property valuation are going to be. Now, if I heard Councilmember Martinez correctly, her motion wasn't intended to then have city staff run off and go do that valuation without coming back to the council. Rather, what will happen is we'll get far enough to start the valuation, and then we will come back to the council. We'll tell the council, this is how the valuation is going to work. We'll also know at that point in time whether we have the in house expertise to complete the negotiation.
The city manager says that we do. We'll also be able to identify strategic actions to facilitate future acquisition of a long term lease renewal, and we'll be able to bring that all back to the council for its consideration before anything progresses. I think that's what the motion amounts to. I'm sorry I used so many words, but I'm trying to articulate it all as one package. I have serious misgivings. It's of course the council's prerogative 100%. I have serious misgivings about whether that can be done in ninety days. But we certainly can start down that path.
I guess my question is, we've had many, many, many memos passed thinking that it's going to come back for approval. And then there's questions about whether there's any action item being approved. So, I want to make sure we are voting on this whether we approve or not. We are not going to say yes once county says yes we are willing to renegotiate our lease. A professional appraisal is going to be next. And, without us negotiating or reconsidering
that.
Councilmember Lu, I say there are two sides to that coin. All of the people sitting on this side of the room are thinking the same thing for a different reason, which is they don't want to go out and procure an appraisal if they're not sure if the council authorized it. So that's why I restated the motion. I think the reality of the situation is that we would get into the negotiation, we'd figure out the parameters for whatever the valuation is, maybe it's broker opinion value, maybe it's an appraisal. And then we'd come back to the council, get a further authorization to do that valuation before we move further through the negotiation. That's what I understand the motion to be. And I see council member Martinez Franco nodding her head. I think council member may agree, but that's for her to say, And
just to add, we could do that part in closed session since it is a lease negotiation?
In closed session, we can talk about the price in terms of payment for
a real I property think that would make it easier. Thanks.
That is what we are doing.
Councilmember Mai.
Thank you mayor. Jeff I want to respond to you on that. Will quote something you always say. Is that intent doesn't matter in the eyes of the law. So, I don't know why that was read back to us already. I think we were good at one point and then it kind of shifted away from it, from that motion because it was amended. So, we're not talking about that original one there. Yeah. We're not talking about that one. I mean, you're talking about that, the intent there, but we've already had an amendment and a second. So we're moving forward on that. So I want clarification now because I know after about an hour on the same topic, everyone gets brain fried. Alright. So basically, there's not going to be an appraisal. We're not going to go to an appraisal.
We're going to go to negotiation on the lease. And then at the time, if it needs be, we'll go to the appraisal at the time. There's going to be no appraisal at all discussion of spending money on appraisal. That was the amendment to go talk to the supervisors. And I want to be that I want to make that very clear because it was a little funky here. So, I mean, basically, I want clarification that we are not going to an appraisal at all. We are just going to go talk to the supervisors, renegotiate potentially an extension of the lease, and that's it.
I'll say it back to you Vice Mayor Mai. There won't be an appraisal now. If there ever is an appraisal, it'll be because the city council authorized it after we've commenced a discussion with the county.
Correct. Great. That's all I needed. And also, I just want for just to put things in perspective, we're paying $4 a square foot on the lease right now. It's at 10,000 square feet, correct? All right. Great. And so, that's it. Thank you.
Alright. Is there a motion before us actually? I'm not going to ask the court to read it back because you spoke for about three minutes, Mr. Melchin. Apologize.
And it began to move from the outlines of emotion to a small novel. So if you would like to restate what is before us, and if in fact that reflects what council member Martinez Franco wishes and council member Tresidder wishes, then I think we just move right to a vote.
Alright. Number one, city staff will go out, commence a negotiation regarding a lease extension with the county. As part of that negotiation, city staff and the county will attempt to agree on parameters for a property valuation. Number two, assuming that we get through step one, city staff will come back to the city council to talk about conducting that and getting authorization to do that property valuation. And then, also, number two, whether we need to secure real estate and negotiation expertise to complete that negotiation.
Number three, to identify the strategic actions to facilitate the future acquisition of the long term lease renewal. And number four, is that report back? That's the motion.
All right. Does that reflect your wishes? Councilmember Martinez Franco, very well. And Councilmember Trusieder. Good. We have a motion in front of us. No further requests to be heard. Would the clerk please call the roll?
Councilmember Carroll? Yes. Councilmember Go? Yes. Councilmember Liu? Yes. Councilmember Martinez Franco?
Councilmember Trusieder?
Vice Mayor Mai? Yes. And Mayor Agram? Yes. Carries seven zero.
Well, there you go. All right. Thank you all. And that allows us to move on from this subject to yet one more. Item 6.4, would the clerk please identify this item by title and subject.
Item 6.4 is consideration of a request by Councilmember Martinez Franco to discuss the establishment of an annual City of Irvine Women's Conference.
Very well. Council Member Martinez Franco, I'll turn to you now at this point to further introduce this item.
Thank you. On March 13, we successfully hosted a inaugural women's conference at Urban City Hall as a free day long event focused on education, empowerment, and connection. The conference brought community members together for keynote speakers, panel discussions, and breakout sessions, and topics such as health and wellness, financial literacy, entrepreneurship, domestic violence awareness, and career development. The event also included networking opportunities and on-site resource expo connecting attendees with city programs, community organizations, and local partners. The event was a strong success with almost 400 attendees from across the city, a substantial positive feedback from the community.
There is a clear opportunity for us to continue our commitment to advancing gender equity to the 2021 CEDA resolution by establishing the women's conference as an annual citywide event. Moving forward with this now will give a staff plenty of time to secure sponsorships and other external finding sources ultimately reducing reliance on our general fund. Just a little bit of feedback that I got from everyone that I encountered, every woman that attended this conference. They are very grateful that for the first time, the city has done something for them. And they cannot believe that we have never done anything such as that.
And it was very successful. I only hear good things, and thank you to the staff for their amazing job, as usual. So, my motion is to establish and if you want to put my motion in there Establish the women's conference as an annual event to be held each March in recognition of Women's History Month, pursue external funding sources, including sponsorships, partnerships, and grants to support the conference and reduce reliance on the city's general fund. And number three, engage community partners, local businesses, and nonprofit organizations to expand programming, increase participation, and enhance resources availability for attendees. And that's my motion.
All right. Is there a second?
I'll second.
All right. It's been seconded by Councilmember Tresieder. Do we have any public requests to be heard on this item?
We do, mayor. We have three requests via Zoom.
All right. Let's first take a round of questions or comments at the dais here, if indeed there's interest in commenting at this time. Seeing none, let's turn to the public.
Thank you, Mayor. Our first speaker is Joanne Slobodian. Ms. Slobodian, you may unmute your mic.
Hi, everyone. Thanks for letting me speak. Council, Irvine is facing real financial pressures, and this is not the time for the city to fund conferences, free lunches, swag bags, and event giveaways. If council member Martinez Franco believes this is important, then she needs to go out and find private sponsors to fully fund the event and then bring it back to the council for consideration. Taxpayer dollars should be focused on core city priorities and financial stability, not nonessential events during a budget crunch. You can't establish this until staff figures out funding. Thank you.
Our next speaker is Eric Nashonian. Mr. Nashonian, you may unmute your mic.
Thank you, council members and Mayor Agron. At the DEI committee, no one from the community came and talked about the women's conference and how much they like the women's conference. I don't think there's anybody in the audience here to speak about in favor of the Women's Conference. And I'm not against winning. I spoke about mouthguards being given to football players by a dentist at the university level here in Irvine in front of the IUSD and how it violated Title IX.
But this looks like something that could have gone to commission firsthand. Betty doesn't I don't think Betty even has a finance commissioner or a Finance Advisory Board commissioner. She really doesn't know anybody, you know, when you think about it, if you look at her commissioners and who she's appointed, a lot of retreads. But this should have gotten to commission since there's so much time to really, you know, talk about this and how it could be done and who could who are potential sponsors and all those things that have been done. The staff shouldn't have been have this yet.
And the staff does a horrible job. I'm sorry, but they do a horrible job of social engagement. Look at the Office of Inclusive Excellence. What happened with the social engagement there? Every time that something gets passed here in the last five years that talks about social engagement, it flounders, it flops, it falls apart. It ends in nowhere. It goes to nowhere land. So perhaps you guys should really think about using your conditions. This would have been one of those things that could have gotten conditioned first before it was brought up here. Thank you.
Our next speaker is Janine B. Janine, you may unmute your mic.
Hi. I reviewed this item from the agenda in advance of the meeting. I noticed that there were 400 people who attended the event, but nowhere did I see how much the city spent on this event. So as a member of the public, I would like to know how much did this event cost us? Because it's very nice to say we're gonna look for sponsors and other funding, but was it $4,000, $40,000, $400,000?
How much was it per participant? And how much do we think we're gonna be able to get? I feel like we need to the the city council should push off and vote no on this particular item. And then next year, when we know how our budget is doing, then we can make a decision from year to year and at that time, assign a funding level and a budget, and then the city or private groups can look for other funding to supplement that. So I I encourage the step the council members today to vote no on this item and to turn it into a year to year event.
This will give the council members an opportunity to understand what the costs were
and where the city could look for
other funds to supplement or replace the city council's funding, which is already in a $6,000,000 deficit. Thank you.
And that is all, Mr. Mayor.
Thank you. Let me turn to my colleagues here. First, we'll hear from Councilmember Martinez Franco, then from Councilmember Tresidar.
Thank you. I just want to clarify for the audience. We authorize only $40,000 budget to for these. But I don't think we spent more than that. I don't know if, yeah, Melissa, would you like to just clarify how much we spent on the
Please introduce yourself, if you would. And thank you for sitting in the wings waiting to be called.
Of course. Good evening. Melissa Haley, director of communications and engagement. Absolutely, the city council approved a $40,000 budget for that event and approximately $31,000 of that was spent.
Thank you so much. And with that saying, the motion calls for to be funded all with partnership, grants, and sponsorships. I'm not asking any funds approved for these. I'm asking to be all fully funded with partnerships, grants, and sponsorships. So, I know that it's a big responsibility, and I'm willing to help on that as my office.
And I mean, depending if I'm still here, right, next year. But whatever I can help this year and start securing the sponsorships for next year. And again, I'm not asking for anything from the general fund. Thank you.
Thank you, Councilmember Martinez Franco, Councilmember Treseder.
Thank you. Yeah, I'm happy to support this for two reasons. One is that it seems like it was a successful conference this last time. And I think any time we have a chance to bring the community together, that is wonderful. And then also that it won't be using any money from the city. And I think we have a good role to play as leaders and organizers. I agree that the budget right now, we need to be careful about it. And I appreciate that councilmember Martinez Franco has said that she does not want city money going toward it.
Thank you, Councilmember Tresieder. Councilmember Mai.
Thank you, Mayor. Yes, I was actually at this conference and it was well received. I couldn't count how many people, but it was very well received by the public and very beneficial to business owners and the women that attended the conference. And the cost of this is pretty nominal for the return, I believe, this coming year because the feedback that I received also was very positive. And I believe that most of it and probably more fully could funded by sponsorships.
Just 31,000, I believe that there's so many organizations that were in attendance that the sponsorship should not be even in consideration. I mean you should be able to get more than that. So hopefully, we will be able to and we'll know when we open up the sponsorship packages or when Melissa opens up the sponsorship packages in advance.
Thank you, Council Member Mai. Council Member Carroll.
Thank you, Mayor. Yes, want to thank Council Member Martinez Franco for raising this and bringing the idea forward to make this permanent. It really everything I saw seemed like it was a really fantastic event. Personally, I think this is a great idea on many levels. Again, that being said, similar to the prior issue, I can't support any discretionary spending at this time.
Just reading this week's Orange County Business Journal. Let's see. The city faces a $6,000,000 budget deficit this fiscal year with the shortfall potentially rising to $47,000,000 over the next five years. We're in the midst of reviewing an enormous volume of budget detail, very thorough detail that Vice Mayor May put forward and spent many minutes reading in great detail into the record. We need to let that information be compiled and come back to the city council and to be fully evaluated before we make any additional commitments of Irvine taxpayer dollars in any amount.
Our responsibility as a city is to prioritize what I'm going to start calling the five P's, and I'm going to start using it. Police, public works, parks, permits. These services directly impact public safety infrastructure and the daily lives of our residents. And until we have a clearer picture of our long term fiscal position from the reports that we've requested ourselves, it just, in my opinion, wouldn't be that responsible to commit taxpayer dollars away from those core city priorities. We have to focus, counsel, on the things that the city is supposed to do.
And once we get that house in order, then we can go and talk about all the extra things that we can do, the council led things, the events, and all this other stuff that we all enjoy attending, enjoy participating, and enjoy getting people involved and excited in. And separately, I would just say each of us has, as we're hearing from the public and even from our former mayor, we have very significant budgets. And if that's something that a council member wants to spend money on of their very significant individual budget, That's something, obviously, I wouldn't object to and I could support, but out of respect for taxpayers and to protect public services, police, public works, parks, permits, I just can't support this at this time, although I think it's very well intentioned. I would like to request that this item be continued until we have to receive a full financial picture of the city. And I just would ask if that's something that councilmember through the chair would be willing to accept a friendly amendment that we continue this item until we get the budget report back and we've had a chance to have that study session and we all can make an informed decision on all the events that we have, including the idea of taking this into an annual event through the chair, if we could do that.
Yes. Was suggested as a friendly amendment that it's not really an amendment, but as a friendly gesture, that the matter be continued and brought back to us after we addressed the budget in early June. Is that correct?
Yes. Would you
be inclined to accept that?
I want to just make sure I don't think Council Member Carroll has paid attention to any of my motions at all. But these motions says precisely there is not gonna be use of budget. There is gonna be pursue external funding sources, including sponsorships, partnerships, and grants to support the conference and to the reduced reliance on city's general budget. We're going to engage community partners, local business, and nonprofit organizations to expand programming, increase participation, and enhance resource availability for attendees. As a matter of fact, I already have talks with Hope Hospital and the other couple organizations that are very interested on sponsoring this event.
So, it is possible to find all fully sponsored event, and we can do it. So, no, I don't accept the motion. Or the friendly amendment, sorry.
Thank you, mayor. Councilmember, you said a lot, and you seem to also imply that I didn't read correctly. But let me just read your motion to you. Number two, pursue external funding sources, including sponsorships, partnerships, and grants, to support the conference and, and I underline, reduce reliance on the city's general fund. Okay.
Council member, with respect to you. So I have read what you put forward. Reduce implies logically, I believe, that we will use taxpayer dollars. And for that reason, I'll be voting no because I think that we need to get our financial house in order before we go ahead and make decisions like this, which is just my opinion on how we ought to practice the city government. Thank you.
Thank you, Councilmember Carroll. Councilmember Liu.
Well, Councilmember Carroll kind of took the words out of my mouth. My question is, are we amending the motion to say no use of city general fund or no use of any city fund?
No. I think I there was think
that's what I
was no amendment of any kind accepted. So what is on the screen in front of us is What we are voting on.
So that means we will be considering using the city's general fund?
I don't want to put words in Councilmember Carroll's But seemed to be the implication. But that's just my interpretation.
I mean, wholeheartedly agree with this event, which my office actually threw one the year before on our office budget. And it was quite successful, well attended, lots of resources. Council Member Go and I did it together at the Great Park area. And it was very resourceful. I mean, was very informative for the residents.
They are asking us to do it again until we have another one that if I didn't have to use my office budget, am all for that. I agree with councilmember Carroll that maybe we should have an idea of what we're looking at with city budget discretionary spending might not be ideal at this point. But, the way it's read right now, it says reduce reliance on the city's general fund, meaning that we will use some of it. If it's looking for sponsorship and then not you know, use any general funds, then that makes sense to me.
Yes. Let me thank you, Councilmember Liu. Let me insert my own comments here, if I might. Because I think in an odd way, we're sort of moving toward a consensus here. First of all, let me say, both my wife and I had a chance to attend the morning session of the conference.
And what we saw and experienced was stellar. It was a terrific concert, terrific gathering, well organized. And no doubt our staff was largely responsible for that organization. I want to point out something that, you know, sponsorships don't just drop in. Typically, sponsorships, particularly major sponsorships, involve a lot of staff work. Am I correct, Ms. Haley?
That is correct.
All right. So when we speak about sponsorships or grants for that matter, that's staff work. I think, mindful of the concerns that have been expressed about budget and so forth, it's kind of occurred to me that, as a matter of discipline and organization, this matter, which my tendency would be to support it, but not with general funds. And to the extent that there are sponsorships, recognize that there's likely to be a cost associated with securing those sponsorships, a cost to our staff, to our general fund. I think there will be some value as we put together the budget in thinking about all of
events that we take on, give direction to our staff to help organize and execute, which they do in fine fashion, sum up all the costs associated with it, the bandwidth of our staff, whether or not we're taking on too much or burdening the general fund too much. And I think if we look at the budget in that regard, and I'm just going to pick a number, discretionary events, they might add up to $2,000,000 or $1,000,000 in staff time, effort, costs to the city and so forth. If we were to sum up all of that and say, well, you know what, we want to spend a little less this year. And then begin to prioritize what we're taking on accordingly and figure out, as has been suggested, what portions of those events can come out of and should come out of an individual council member's budget? Because we have ample budgets, in my view, to run our offices and to sponsor various events and so forth.
And I think if we looked at all of this in the context of the budget, adopt the budget, and then come back and begin to look at, okay, what are the annual events? What are the nice to have events but shouldn't come out of the general fund, in which case council members may wish to sponsor things themselves. What would require, and we need to be realistic about sponsorships, it's easy to say, but to go out and actually secure a sponsorship is not easy to do. And figure this whole thing out holistically. I would like to assure council member Martinez Franco that if that approach were taken, I certainly would be supportive of including an annual women's conference, at least for the next couple of years or whatever.
But I think it ought to be organized in that context, which would mean kind of returning to this fall, or after the budget is adopted in June. That's my thought. I'll just leave it at that. I see there are other requests here. Council Member Mai, then Council Member Martinez Franco, then Council Member Tresidar.
Thank you, Mayor. Melissa, what was the date on that, again, the conference?
It was March 13.
March 13, okay. You know, I've heard the comments from my colleagues here and I think what if it's acceptable, I'd like to make a friendly amendment to number two there to include no use of Citi's general fund. I'm confident that you'll get the sponsorships. That's why I'm making this friendly amendment to list and itemize no use of city's general fund.
Accept.
Let me understand. Your, so what would the wording of number two be, Council Member Mai?
Pursue external funding sources including sponsorship, partnerships, and grants to support the conference and no use of the city's general fund.
Let me just ask you a quick question for clarification. Sponsorships typically involve staff work. Are you saying including sponsorships without staff work?
Well, not from the city's general fund. Sure, there'll be staff work, but I'm not counting that on the city from the city's general fund in terms of a monetary dollar amount. Now
I'm confused. When our when our staff goes out and helps secure sponsorships, that is staff time that we pay for to do that work?
Sure. So, how about if I amended it to support the conference? That's it. Pursue external funding sources, including sponsorship, partnership, and grants to support the conference. Period.
All right. Well, again, there's, in my mind anyway, the implication that staff will do some work to help with the sponsorships. But that's fine. I mean, if what you're suggesting. And if Council Member Martinez Franco accepts that as a friendly amendment?
I say yes.
I'm sorry, you do? All right. And who was the second? Was it Councilmember Trusieder?
It was me, I accept.
All right. I think we have a motion then that is now with that friendly amendment in front of us. Councilmember Martinez Franco and then Councilmember Tresieder, and Councilmember Carroll.
Yes. Again, I think when I first brought up these two to present, I expressed I mean, this is what I do for a living. I do sponsorships. And I know that the sponsorships can cover the entire event. I have a ton of sponsorships for nonprofit organizations.
And I cover the entire event for them. And I'm offering this time, my help around to bring sponsors. So, it's not that they are not going to have more time. Besides that, and to simplify, I'm not saying I'm going to tell you how to do the work here. But if you put a sponsorship package and you send it to several people with all the events that we have already in place, it's not extra work. It's just adding and if you want, I can just type it for you so you can add it there,
so you don't have to
do it. And it's not extra work. You're already doing the package that for sponsorships, and you're going to put the list of events, and the sponsors can choose which events can they can sponsor. And that will be depending and we want to start right now. This is we cannot leave it until June or July because then that's when we stress out staff. And I don't want staff to be stressed out looking for sponsors last minute. So, it's better if we start right now and just build the sponsorship package right now and send it to sponsors. Thank you.
Thank you, Councilmember Martinez Franco, Councilmember Tresider, followed by Council Member Carroll.
Thank you. Yeah, I appreciate the friendly amendment. I was going to suggest that as well. I think that Council Member Martinez Franco has ample experience in obtaining sponsors, and so I have a lot of confidence that she confident she can do it. My staff, I'm happy to have us help with the event as necessary.
That's no problem. If we're concerned about the cost of the staff's time in working on this, I think probably we could show some self discipline in not asking them to do things that are not requests made from the Council as a body. At least here we know that we are asking for this from the staff. If we start reducing the things that we ask for outside of that, I think that will save a lot of time and probably make up for that amount. Thank you.
Thank you. Councilmember Carroll.
Thank you, mayor. Just briefly for maybe just adding on what the vice mayor's innovative solution on this. I'm often asked to go do this and go draft that and a couple of business people get together and say here's the way we want it and then you go and draft it and put it into a bunch of documents that actually bind people to do things make promises, you know. So, in this regard, I just want to kind of just really call out some practicalities about this. I could get my arms around it, but I think it needs, with respect to our staff, like the person sitting at the table right there, we need a cutoff date.
There needs to be, I think, a certain amount of months before whatever the there'll be a date that will be picked, and then there'll be sponsorship that will be sought. But if the sponsorship is not achieved, that's needed by a certain date, I think the event has to go off the calendar. I think if you don't have that, this is going to be really unwieldy. I don't really know what happens. And I don't want to put you on the spot, Melissa, but do you have any thoughts as to that or how we would do that?
If it's just going to be not no taxpayer dollars that could be used. Again, I think it's more practical to do this on the other side of a budget detailed budget meeting. But if we are going to do this, how determine do that we may have the sponsorship funds that we need and cancel the event?
Our typical practice for sponsorships is we give a deadline. So, when we're seeking sponsors, it's Global Village, Irvine, Somewhere in the City, Illuminate, of those, We do give an end date where we request because we have to move forward regardless. So we have to move forward, we have to plan, we need to know what we have available to us resource wise. So we do give an end date with that in mind so then we can forecast out, all of the details we need to do to get to that day.
Do you have like a time frame that you could suggest that we could maybe put into this?
Well, staff could look at putting together a package, and similar to others that we've done for other comparable events attendance wise and then share that with the council and provide a date. Would prefer to look at a calendar and walk it back, but I would suggest it would be no later than probably August before we get into the fall months when things will pick up for us just with the fall events that the special events team has going on. A lot of our time is spent on those and producing three very large events during that time.
So, would it be like, is it ninety days before the event date that we would have to secure sponsorship dollars?
I would I prefer
think I would prefer for it to be by the August, so like August 30 Just so we I mean, we could be of course flexible. We do it all the time. But just knowing that what the staff has to produce during the fall is monumental. We have our twenty fifth anniversary Global Village Festival, coming up. So, there's just a lot of time where we're not focused on other events and then we'll regear after in January. But at that point in time, we'd like to know what we're working with.
Okay. So, thank you. So, I guess, through the chair, if we could maybe ask for an additional friendly amendment to make this practical to say that I don't know how it's worded exactly, but that the idea would be that, you know, to receive that those partnerships and sources, etcetera, by August 31, that would be great.
Is that directed to me?
I think it's back over to All
right. Well, can we just kinda hold that thought for the moment? Or do you want it included in the motion?
Well, I mean, I I think if you if it's not included, mayor, I think that this creates chaos. Because if we get to a point at which the funds are not being raised and we're short 10,012 thousand $13,000 and we've said, you know, per Vice Mayors May change that was accepted that we will not use city general fund dollars. We're in this kind of weird situation. I'm just trying to make this work. I'm trying to be able to vote yes.
The council member could say sponsorship by x date, or I'll take my budget money and put in the rest of it. I mean, we just have to make this practical. I want to point out one more thing, because I want to put it on the record. This is all being taped. Is that we also run the risk, if we do this, of putting together an event that our amazing events team and city puts on that gets somehow put off. And it was a great event, by way. It was an amazing event. But that it gets put off or somehow shelved because we didn't make a certain I just want to be practical, you guys. Okay? We've got to be practical.
We can't go out and advertise an event, and we don't get the sponsors, and then we've already advertised the event. Is that so wrong for me to speak practicality at 09:15 p. M. On a Tuesday? I mean, seriously, we have to have something in there. There's a deadline for this staff to say, well, we didn't get the money in. We weren't successful. And by the way, I'll help raise the money myself. I'm happy to make calls. Give me a list, or I'll call people myself. I'll probably raise it. Thank you, mayor. But I can't support it unless it has that.
Let me put a question to our staff. When we adopt the budget in June, will there be kind of a cumulative special events line item? Well, we have an appended list of special events and the associated staff costs, maybe by in terms of your department or whatever, how much detail will we have in connection with the budget?
It is baked into our communications and engagement budget. There is a section for special events. And Dale's here to talk more about that.
All right. Yeah, we certainly can put something together just to address this. Typically, it's not lined out on our actual budget, especially because this is our mid cycle. So, our mid cycle doesn't go in that level of detail. We just have adjustments that are made as part of the mid cycle. So, if it's counsel's wish, we can always put something together that details all that.
All right. I think, personally, I think that would be very useful to have. I mean, are certain events we know we're gonna do. We're gonna do the Global Village Festival, and we have experience with what the costs are there. There are other annual events that we do.
And then there would be presumably a list of ad hoc events that came in over the transom or whatever. And we could actually begin to budget for these. I think there's a shared sentiment here too that if something's really important to us as council members, we do have ample budgets of our own and can do some of the hard work of donating funds to an event or being a sponsor, at least one of the sponsors of an event. All that needs to be kind of done by way of policy. I don't want to try to get that in line here with dates and deadlines and all the rest, securing sponsorships.
But it really does seem to me, if we were just to defer this till after the budget is adopted, and if we really took a good look at the budgets, kind of a granular look in terms of these special events, what they cost, and have a top line number on that. And then we can begin, I think, to more rationally make decisions about these things. And I would think under that scenario, there would be no problem in getting funded the annual women's conference, either through council member contributions or secured sponsorships that we might be instrumental in doing. And maybe we need to, as I say, develop a formula so that we don't just do things here that fall on the general fund, and then we get surprised with, oh my goodness, we really spent too much on these special events. Anyway, I guess in a sense, what I'm asking for is a little forbearance here to get through the budget.
You could actually supply us a list of all the special events, what their costs were? We can. And we would have that assembled going into the budget process?
Certainly.
Well, that would be my preference. It would be very useful to have that. And I would, I think, just ask for a little forbearance tonight. But if there's insistence on moving forward with a motion, then we'll call the roll on that. All right. Thank you. How many people want to be heard on this?
There are no requests to speak, mayor.
None? All right, close the queue. And I'll call on Council Member Mai and then Councilmember Martinez Franco, and then let's move to appropriate action. All right.
Thank you, Mayor, and thank you Councilmember Carroll for the suggestion there. I actually my first comment was when was the date. So, I wanted to see if you guys would have enough time to put together potential sponsorship packages and get it ready early enough in time that we could do that. But the date issue is a great idea as well. It just solidifies we're able to do that. So, have no problem with that if we're able to make that if you're amendable to that as well, Councilmember Franco. But either way, I mean, I'm pretty confident you're going to be able to get sponsorships, Melissa.
right. Councilmember Martinez Franco.
Thank you. Well, the last thing that I'm going to emphasize, we need the time frame before all the events and start slowly getting sponsorships all the way until March. And the event is not going to be advertised before we have the sponsorships. So, obviously, we are going to have sponsorships and then advertise the event. First comes the money, then comes the advertisement. But anyways, I'm ready to make a I'm ready to vote. So, we can just move on and vote now.
All right. Let's be clear what the motion is.
The motion is to establish the women's conference as an annual event to be held each March in recognition of Women's History Month, pursue external funding sources, including sponsorships, partnerships, and grants to support the conference, and no use of the city's general fund. That was the part that you modified, right, James? Yes. Okay. And no use of city's general fund. Engage community partners, local businesses, and organizations to expand programming, increase participation, and enhance resource availability for attendees.
All right. That's the motion that is before us. Would the court please call the roll? Councilmember Carroll.
Pass.
Is that an abstention?
There's nothing in the rules that says I have to vote first. Want to see what everybody else does.
Oh, okay. So you want us to come back to you? That what you're saying? Yes. Go ahead. Keep calling the rule.
Councilmember Go. Yes. Councilmember Lu.
As much as I think this is a good idea, I think the timing is not right. So no for me.
Councilmember Martinez Franco?
Councilmember Cecider?
Vice Mayor Mai? No. One point of clarification. I'll ask the city attorney. The municipal code still says that the mayor goes last, but I guess at the discretion of the mayor, if the mayor wants to vote first before councilmember
I'll go ahead. No.
I'm sorry, councilmember Carroll? No. And mayor Egren? No. Motion fails three to four. Councilmember Carroll, councilmember Liu, vice mayor Mai, and mayor Egren voted no.
That concludes this item. Let me suggest, please, that list be provided to each of us in advance of our deliberations on the budget. Will do. Thank you.
Point of order, mayor. I just want to or a point of personal privilege. Councilmember Martinez Franco, I'm willing to split the event with my budget with you for next year. Thank you, mayor.
That concludes this item. We now have one remaining item. Item 6.5. Would the clerk please identify this item by title and subject?
Item 6.5 is consideration of a request by council members Goh, Lou, and Tresider to discuss an independent audit for select city projects.
Alright. Councilmember Trusieder, I will turn to you. Are there incidentally, there any requests to be heard under this item?
We do have requests, mayor. We have eight in person and five on Zoom. Wow.
Okay. Councilmember Treseder, why don't you proceed to introduce this? I know this originated with a memo that also included councilmembers go and Lou. I let the three of you go first if you wish.
Thank you. I defer to councilmember go who led this item.
Thank you. Can start. I just want to put forward some items. I know we have been talking about the budget the last few weeks, the last few meetings. We just want to make sure we look at all the items that got us to that situation and want to be able to review some of the things that's happened.
Some of the years beyond the times I've served but still would like to know as Irvine taxpayers kind of what happened and how it happened and how do we prevent it moving forward. $6,000,000 I'm sure part of the list here the eight items I can read them out right now that help contribute to some of the shortfalls. First one, number one is how the federal COVID money was spent from '21 to up to date '25. City Hall renovations including the parking lot and 3rd Floor from '22 to '25, six month severance packages offered to city staff back in 2022, the cost of the 2025 state of the great park, the proposed swift cities gondolas project spending, purchase of the all American asphalt plant, the transition from the Orange County library system to the current established Irvine library system, and the failed purchase of 17572 Armstrong Avenue. I believe we added another item with the DEI on the request of councilmember Carroll as well.
Those are just some of the lists. Happy to hear others if they have other concerns or items that they would like to add on this list.
Other requests? Let me understand what is being asked for here. Is there a motion, an audit that's being proposed, a staff report? I'm just a little unclear.
Have a motion prepared, but we'd like to see go on around and let the other council members speak as well prior to us making any definite proposals. There could be more additions to the list that I would anticipate might be coming as well.
All right. Council Member Liu.
Thank you. As I previously stated, and we've talked about the budget for the last month few weeks, we should get a diagnosis before we start treatment. So, this memo is that diagnosis. We're asking staff to come back in sixty days with options, scope, cost, timelines for evaluating well, I guess nine projects with notable fiscal implications. And I want to emphasize that I am looking for a sensible solution to make structural changes to avoid further deficit and improve efficiency.
So, the point of this request is not to assign blame. It is to adjust our way of using taxpayer funds. Even though we weren't on council when this budget was designed, we are on council now. So, we are still responsible. And as such, it would not make sense to request an audit that does not accomplish the two goals of this request, save taxpayer money, and also identify ineffective practices.
So, this brings me to explain the difference between my proposal versus what has been approved. For starters, I see issues with immediately acting on things that we are not quite sure what the issue is, when we are not quite sure what the issue is. And the process so, what we're looking for is a process audit that will assess operational efficiency and compliance with procedures, not a forensic audit, unless that is needed, to which is to a specialized deep dive investigation to detect fraud, embezzlement, or financial misconduct for potential legal proceedings. The difference is process audits will prevent errors. Forensic audits investigate suspected crimes.
We're not saying that there's any crimes or malfeasance that but what we're looking for is to have a process audit and identify where we're losing money and how to fix it. With that being said, this is a matter of fiscal responsibility, and we would like to have this considered and have staff bring back options so we can see where what makes more sense. Instead of spending more money and waste taxpayer money some more, we need to focus on how to fix this structurally to prevent another deficit. And with that, I will turn my time to Councilmember Cecilia.
Alright. Thank you, councilmember Lu. Councilmember Cecider.
Thank you. Yes. I appreciate councilmembers Go and Lu for, supporting this action. I think that the proposed projects that we are interested in evaluating, at least for me, each of these projects rang some alarm bells for me during the previous council and also last year in terms of the process. How are the decisions made to spend this money?
How are the vendors selected? How is the money accounted for and presented to the council as these items were ongoing. I think it's very important to figure out what happened here. As council member Liu said, once we know what may have happened previously, it can help us shore up our practices and make sure that we don't fall prey to them again inadvertently. And so this is the main reason that I want to support this. I just I want to know what happened here so that it doesn't happen again. Thank you.
Alright. Thank you, Councilmember Tresieder. Why don't we turn to the public at this point? Councilmember Goh, would ask you to maybe put the motion you have in mind in front of us so we can hear from the public and they can speak to your motion. Would that be reasonable for you to do at this time?
Yes, that's fine. The motion is I move that within sixty days the city of rivine bring forward options for audits that will include potential scope, estimated cost, timelines for the following identified projects, or an already existing audit for the following projects listed one through nine.
All right. Very well. Do we have that printed to be
put up at all? It's published.
There is one before you, I believe, a copy of it. Have to read the nine items if you'd like to.
is there a printed copy of the motion at the dais?
I believe there is. And if not, I apologize. But I do have a printed copy here.
And can we put it up on the screen so that
people I don't can know if it's see available to put on the screen.
All right. Well, at least get us a copy so we can refer to it, please. All right. With that, let's turn to the public for comment. Do you have a list for us?
We do, mayor. Thank you. We have eight requests to speak in person and six on Zoom.
All right. Let's leave the queue open a few more minutes.
Go ahead. Thank you, Mayor. And I believe Al Meyerson went home. So I'll call forward Suki Kang, Max E, Don Geller, Sandy L, Myra F, Carol L, and J. Bruce. And we'll start with Suki Kang.
Welcome, Mr. Kang.
Well, Mayor Egren and also all the city council members. Once again, my name is Suki Kang, former Irvine Mayor. Let me just begin by saying this. Irvine is facing a budget deficit for the first time in its history. Yet, instead of focusing on practical solutions, three members of council proposing audits of past years when budgets were balanced.
It really shows this council is just fiscally irresponsible. Number one, it diverts time and taxpayers dollars from addressing today's fiscal challenges. Number two, as you all you know, audits are very costly and revisiting balanced budget is not a responsible use of limited resources. So, last week, I raised concerns about a $6,000,000 shortfall this year and a projected $47,000,000 deficit ahead and highlighted a critical area to solve this type of crisis. Before asking residents to pay more in new fees, This council must clean its own house first.
Each council member has over $600,000 annually for staffing and discretionary spending. In total, nearly $4,300,000 combined. No other cities in Orange County come close to this level of spending for elected offices. When I was mayor during the worst economic crisis, we focused on fiscal discipline, prioritizing essential services, and protecting taxpayers. We did so while balancing the budget for four consecutive years without furloughs or cutting core services.
That is the leadership Irvine needs today. Before placing new burden on residents, please lead by example and make things happen. Reduce your own budgets and demonstrate your leadership. Irvine families are already tightening their belts. The city council should do the same. Fiscal responsibility starts at the top. Thank you.
Thank you for your comments. Next. Max. Welcome.
First, I have to say, I completely agree with former mayor. We don't have to spend time and effort, but anyway, hope we will listen. We're all saving library. We just heard that council member regretted the vote on that subject. We're trying to save open space, and I hope we will get the right information on that on that on that subject. Now we're trying to save taxpayers' money. I want to circle back to the easement question. And since we discuss since we discuss an audit tonight, I would agree also with Mike Carroll. He said last time that we need to outage certain committees here. But let's not stop there.
Let's outage the easement situation. Who has the courage to bring this up? We already have an offer on the table, and we're talking potentially about $1,000,000,000. Why all of you keep silent on this subject? Thank you.
Thank you. Mister Geller, welcome.
Good evening mayor, vice mayor, council members. Don Gullahere, chair of the finance commission, but just speaking for myself. First, we already spend over $70,000 on our annual independent audit from Clifton Larson Allen, the eighth largest accountancy firm in The United States. I feel that an additional audit is an unnecessary expense that could cost hundreds of thousands of dollars and it would not reveal anything that you don't already know. This would add significantly to this budget expense ironically at the same time we are looking for budget savings.
Second, this would tie up our staffs time unnecessarily with a policy of not filling vacancies and with the rolling out of the new workday applications across all our departments this is not the time to ask our staff for all the additional work required by a new independent audit firm instead just ask our staff to provide you with any details you need on any of the projects in the past that you have had questions on. They will be more than happy to comply without the necessity of an independent audit. Third, I looked over the list of the concerned projects. I believe that at least half of these projects went through council approval. I think numbers one,
six, seven, and eight
were approved by previous city councils. You might have voted for a different outcome if you were on the council at that time, but these projects were discussed and approved by a majority of the council members, perhaps even in a closed session. No audit is needed on these items. The four others were still legally approved by per municipal code which allows the city's managers, which allows the city managers discretion on projects that are less than $1,000,000. You might feel that this was a waste of money, and you might be right, but it does not mean that anything improper was done to warrant an audit.
If you don't like the Irvine's municipal code the council can change it by looking at all the projects that exceed a certain monetary threshold. And as I've always advocated ask the finance commission to be more involved. I strongly advise the council to not approve this unnecessary independent audit. It is a waste of money and staff resources. By all means ask our staff first for any explanation. Ask them tonight. They're here. Or ask for a staff report before you decide to get an outside audit. Thank you, and good evening.
Thank you for your comments. Candy? Welcome.
Thank you. I want to thank the council members who have brought this up about an independent audit and for Mr. Carroll establishing that the establishment of the Office of Inclusive Excellence be included in that and all of you voting for it. I want to be clear that this is not about the merits of DEI. This is about process, transparency, and accountability.
The council only directed the DEI committee to research the possible creation of a DEI office, including the need, staffing, scope, and implementation. The DEI committee never conducted the research and yet the office was created anyway without meaningful input from either the DEI committee or the public as required by the council's actual vote. Further, positions were reportedly filled without standard hiring procedures, including publicly posting job openings. But even more concerning, this office was given nearly a $1,000,000 budget At a time of a $6,000,000 city budget deficit, residents deserve to know how an office representing roughly one sixth of that deficit was created without vetting, protocols, transparency, and public process the council itself directed. I also respectfully request that the auditors review the actual recordings of the council meetings, not just the minutes, to fully understand what actions were and were not authorized.
An audit is not an accusation. It's a verification tool that ensures transparency and restores public trust. Opposition by many of those who have opposed it to an independent audit only raises further concern. When offices and expenditures appear to be created outside proper procedures, residents naturally begin to question what else may have occurred outside normal processes and procedures. Transparency builds trust. A lack of accountability erodes it. Thank you.
Thank you for your comments. Myra? Welcome.
Thank you, and thank you for putting this motion forward and listening to the concerns that we have. We all agree we're at a $6,000,000 deficit now. We all agree that the proposed budget increases that by 50% to $9,000,000. That's concerning. It's concerning that it was allowed to happen and I find it preliminary concerning that no one knew until recently.
No one knew that this city was operating at a deficit, or at least that's the perception that the public has. Every board I've ever served on has reviewed budgets at least quarterly. I would presume the council would be doing that and be able to evaluate at least quarterly what's being spent and how they're doing it with respect to the budget. I don't know if that was done, but the perception is it was not, which is how this quote surprise came out at $6,000,000 What's more concerning is with the increase in the deficit for the next fiscal year that there are line items in the budget that this city council expressly voted not to include. This council voted not to include an office of inclusion, yet it's in the budget.
How is the budget being created with things that this council and members on this dais decided not to have? Let me give an example. My son comes to me and says, I wanna buy this $5,000 whatever. I say no. Let's look at it.
Let's research. Let's look at other options. What he does, he takes my bank card and buys it anyway. Then he says, I'm gonna go ahead and balance your checkbook, mom, so that I don't see that he's done this expenditure. That's sort of what I see happening with this office of inclusion line item that's put into the budget with the council has said that we're not gonna vote on it now. That's the example. It it I'm not saying it's improper. I'm not saying it's illegal. It doesn't smell right. It's not transparent. I
looked at
the city's website today, and transparency is right on the front page of the website. This budget process does not feel transparent. How does something this council says we don't want yet show up on the budget? We need to have someone other than the individuals who put this budget together do the audit because they're the ones that are putting that are increasing the deficit. They're the ones who are putting light items on the budget this council has not approved. To have them do the audit is just like having my son balance my checkbook after he spent $5
He's $10
I told him not to.
Thank you for your comments. Carol?
So it's been one hundred and thirty six business days. One hundred and thirty six business days that I've been waiting for my Public Records Act. On 11/04/2025 I asked for information on the office of inclusive excellence. I want to say thank you to chairman Geller for exactly highlighting the issue here. We're not getting transparency, we're not getting the information from the commissions the committees and the staff that we should be I could if you would allow me in probably an hour be able to find the emails that I'm requesting in my public records act request but it's been a hundred and thirty six days business days that I have yet to receive a response and that's for the office of inclusive excellence imagine how many of the other listed projects also are not getting full transparency where the public are not able to see what happened, why it happened, what rules were not followed.
Clearly we have something procedurally wrong here on so many levels and the only way to dig into that is to do a proper audit. Not internally, not with commissioners, not with staff, but an external audit that is done to look at the finances, to look at if procedure was followed and laws were followed. It is, I've sat through DEI committee meetings where they were told Office of Inclusive Excellence was going to be brought before council and then magically that never happened and then magically a million dollars was assigned only through some parts of the public records information we received. Found out staff was hired at a million dollars budget that was never disclosed to council or to the committee. So who decided that?
These are the type of things we need to dig into and have clarity on. This is precisely the way that city taxpayers want their money spent. We don't want it spent on pet projects. We want it spent on making sure that the city is being smart and safe and accurate with the money we've entrusted them with. So anybody I have to say of the council members up here and I'm very appreciative that this was brought forth but I have to say that if you do not vote for an audit you're voting against transparency you're saying to the public we don't need to be transparent.
We can have hidden pet projects and nobody has to know how they're run and what kind of money we're spending. We don't owe you that public even though it's taxpayer money. So so know that we see you tonight that's what this vote is about so do what's right by your public thank you
J. Bruce welcome sir
hello city council members just want to say first of all thank you to councilmember Liu for clarifying that this is not going be a forensic audit. I appreciate that change. But still please don't do such an extensive audit. Aside from maybe whatever is going on with the office of inclusive excellence, I think it's facetious to act like this investigation of all of these items is to address this deficit. Auditing anything done prior to the twenty twenty five to twenty six fiscal year, in my opinion, doesn't make sense because we had no budget deficit.
We approved, at least every year, balanced, fiscally healthy, sometimes surplus budgets each year prior to this fiscal year. The problem we're facing now was unexpected and clearly emerged recently in this fiscal year. I'm not saying Oliver Chi was a financial saint, but unless Oliver Chi magically managed to delay the financial impact of his of mismanagement by almost a year, I would rather follow Occam's razor and say maybe it has something to do with external factors. I can think of a few. For example, the, you know, maybe Trump and his war in Iran throwing the economy into turmoil.
Maybe it's the long term effects of his tariffs and resulting volatility in the market. I say this because other local agencies are also facing budget problems. I mean, we've seen this publicly publicized shortfalls in OCTA, Metrolink, LA Metro, resulting in service cuts across the board. That's been a pretty recent event. And IUSD has been facing volatile revenues because of volatility in the stock market for a while now.
You know, this is in the millions across other local agencies. It feels to me like the only real outcome of an internal audit is Councilmember Chesser perhaps receiving a little personal gratification from, you know, against Oliver G. And us hearing the same long term story that the real cause of the deficit is just economic volatility. I mean, I could explain to you what happened with Mayor Khan in the sanctuary at Armstrong Avenue. I could explain to you how we financed the purchase of the asphalt plant through putting it against the Gateway Preserve.
And I could explain to you how we left OCPL. I mean, I could do that. I'm sure Dale Boulissant could do that as well without the need of enough financial audit. This is not done in secret. It was fully transparent, and the public knew about it. This kind of just feels like a personal vendetta. You don't address a financial crisis by spending, like, thousands more. This feels kind of performative for the election year and not a good use of extra money.
Thank you. Your time is up.
Thank you for your comments. Mona, welcome.
Hi again. There was something on the city website. City of Irvine receives national and state budget excellence awards for year 2025 through '27 budget. So I don't know where the shortfalls are. I know I want to see more.
I do think that you guys have to reveal what you're spending, what your own budgets are. Because when I hear Mike say something like, oh, well, I'll I'll use some of my discretionary money to help you, Betty. So what it does for me, it says, you know, there is a lot of money that you guys are able to spend, and maybe we should start looking at what you guys are spending. As far as this list of why are we going backwards? We already everything was fine until you guys came about.
So now we're facing a 6,000,000. Oh, it's not because of 2020. It's not because of 2022. When you look at the 3rd Floor, what's the 3rd Floor? Can somebody please tell me what the 3rd Floor is? The renovation for the 3rd Floor? Mayor, can you answer that? What's on the 3rd Floor for the renovations? Are those your offices?
Oh, okay. So what happened there is did we end up with more city council members? Oh, a renovation that we need to check on because now we have another two council members with their own staff. Now you need to audit it? Really? This is how we're gonna function? It is a vendetta. It's something that you guys are doing that is so useless. And spending money on what? You weren't around for all the discussions.
Maybe you should be going to all those city you should have gone to all those city council meetings. Be woke. We were there. We're tired of this. Stop the vendettas. This you look at the list. And the DEI committee, you wanna you want me to talk about the DEI committee that wants to do nothing? Nothing was done about that. Those are the same people when I call laugh. And you want me to go you want me to to have them respect a DEI committee that doesn't respect diversity?
They attacked Betty while she was there, and I spoke about that. This is your DEI committee that's sitting here telling you you need to audit. Look at your own house first. Don't do audits.
Thank you for your comments.
Our next speaker is Garrett Nishanian. Mr. Nishanian, you may unmute your mic.
Thank you, council members, mayor Akron. I agree with Don Keller. This is something that you can use your committees for to tell you what's happening. I can tell you what happened in the Ostrand properties. You lost $1,000,000 because you didn't use your committees to think about deal before you voted on it. The IRP grand plan, I told you that $500,000 was given away to organizations that weren't qualified to receive donations at the time. God knows how many else was out there, but you don't need an auditor to tell you that. And you guys aren't going to call back anyways if the money was taken wrongfully because I told you that it existed and you guys didn't do anything. This is politics over people. You guys don't know how to use your people, so you have to play politics.
You got you can't play well amongst yourselves, so you have to play politics. You can't meet the needs of your people, so you have to play politics. You can't fight the Irvine company, so all you left to make policy with is your tech projects. What's the use of the audit if you don't have an end result? What are you going do with the audit?
Are you going call back? Honestly, this looks like you guys are trying to divert attention from things like the OCPA that Kathleen Tracita said she's poor no matter what. And it looks like you're trying to divert attention to other things that that may harm your own futures. But this doesn't look like it's gonna go anywhere because, I mean, some of these things, you know, like Don Gillis said, these were already voted on. These were things that already happened. Why why are you gonna go back? What you have to do is determine look. Lack of oversight. That's what happened with the r RRP plan stuff. And lack of forethought.
You guys are dice deciding things without any knowledge of what's gonna happen, without using your finance committee, without using your planning planning committee, without using your people. And you're putting all this stuff on the staff, which is wasting resources. I'm I'm sure they're not happy. They got vacations coming up, and now they gotta come back with all these things that Vice Mayor Mai, items, micromanaging the budget process. These people have been doing the budget process for a long time. But the one thing I want tell you about is the last budget was only balanced. It was actually deficit, but it was only balanced because you guys took $4,000,000 from the surplus fund. So there is there was a problem beforehand. And you guys should have known about it, but you guys ignored it. It was right there in front of your faces.
You took $4,000,000 from the surplus fund to balance the last budget, and somehow you got an award for that. Stop worrying about it. Stop marketing the awards and how we're fully integrated and all this stuff that doesn't solve any things. Start working. Start using your people. Start leaning on staff so much. Thank you.
Our next speaker is Joann Slobodian. Ms. Slobodian, you may unmute your mic.
Hi, everyone. I respectfully ask that the mechanisms to monitor the Oak Creek easement be included as a project for the internal audit. This is not a general fund issue. This is an oversight, policy, and accountability issue tied to a valuable public easement rights and voter approve approved protections. I used to be an auditor of Pete Moore work before I became KPMG.
My job was making sure tracking systems and trigger mechanisms were actually in place so obligations were monitored and acted on when thresholds were reached. That's why this concerns me so much. Residents have repeatedly asked Stephanie Fraedy and Eric White who counts towards the 75% commenced towards development thresholds and whether the easement trigger has been met. They don't even know the answers. In planning, mitigation measures and conditions of approval are supposed to be tracked and enforced by the city, not forgotten by for decades and left to the developer to monitor themselves.
So the real order questions are simple. What department was responsible for monitoring the 88 dash one easement obligation over the last thirty five years? What system tracked the 75% commenced towards development threshold? And was there even a functioning trigger mechanism in place? Did the city keep its own records, or was it relying on the Irvine Company's members? Because if those systems were not in place, the consequences are serious. The city could lose the ability to enforce valuable easement rights while development moves forward without proper oversight. And if this happens at Oak Creek, where else is it happening? If the city cannot track and enforce voter approved protections, then who is protecting us? That is why I respectfully ask that the Oak Creek easement tracking and trigger systems be included within the city's internal audit scope.
I still believe our city needs to have an elected order in the future. We can't afford not to. Thank you so much.
Our next speaker is Harvey Liss. Harvey, you may unmute your mic.
Mayor and council members, I am Harvey Liss, a resident of Irvine since 1976 and a former Irvine planning commissioner. I'm confused by the speaker's former speaker's comments on the office of the inclusive excellence, if that's what it is, since I can't find it mentioned on the agenda. Anyway, with this agenda item, demanding audits of eight major projects, it obviously smacks smacks of an item that was provoked by council member Tresidar, although that's not stated in the memo. This is a declaration of war on mayor Larry Agram, the city staff, and the residents and taxpayers of Irvine with the help of council members Go and Liu. It has nothing to do with an actual audit or belief that something is misspent.
Worse, by this call for an audit, they have called the city's financial management staff malingarers, incompetence, and crooks. Ironically, during a budget deficit, this item will cost the city unnecessarily hundreds of thousands of dollars. City staff should be rightly upset to the point of protesting. Council members Liu and Go have been apparently persuaded to take down the entire city along with council member Tresidder. This item shows no concern to the city staff or the residents of Irvine, but only clearly, I'm guessing here, to satisfy council member Tresidar's pet grievances.
What's even more incredible is that council member Tresidar's obvious dislike of mayor Egren, maybe it's because of her jealousy of him, as, and I'm guessing here, has dragged in council members Liu and Go. Why are they going along with this? Are they part of her cult? This has got to stop. Some of us run against her and defeat her at election time. Otherwise, we're risking wasting way more valuable council time than city money. My only question now is whether councilmember James Mai Betty Martinez Franco will save all of us, save the city hundreds of thousands of dollars that these audits will cost, and immense waste of time by city staff, which will be working on critical projects by voting no on this agenda item. I'm sure Councilor McCarroll, who reliably supports city staff and us residents, is a no vote. Thank you.
Our next speaker is telephone number 347. 347, you may unmute your mic.
Yes, this is Steve Boss. Given Kathleen Treseder's long history of hostility toward Mayor Adrian and all of her unfounded accusations, this item looks like political retaliation. At the last meeting Kathleen Tristeater helped remove an agenda item before residents could even speak on it, silencing the public while accusing others of undermining democracy. Then she bullied residents who came forward to support the mayor's item. Residents are tired of selective outrage, political vendettas, and weaponized investigations by Tresidder.
If this council is truly about transparency, then investigate everything equally, not just projects tied to political opponents while ignoring other council members' projects. Mr. Cedar, where is the investigation into the Orange County Power Authority and the rising cost to Irvine taxpayers? Cities undergo independent audit, annual audit. If Kathleen wants to go on a witch hunt, have her do it on her own time and time. She has access to all the records at her fingertips. I would think the public would want more than Kathleen Trusieder's vindictive accusations that have no merit. Why should taxpayers be asked to fund a politically motivated fishing expedition? Thank you.
Our next speaker is AK. AK, you may unmute your mic.
City council and fellow residents of Irvine, we have a serious problem. Our city faces a $6,000,000 budget deficit. That's real money that should be protecting our neighborhoods, fixing roads, addressing the growing homelessness issue we have at Mike Ward Park, and keeping services strong for every family in this community. While we're staring down the shortfall, an unapproved DEI committee was quietly put in place, costing taxpayers $1,000,000. $1,000,000 without proper approval. That's exactly why we must approve a full audit of city spending right now. This isn't about politics. It's about basic accountability. Irvine families balance their checks checkbooks every month. City government must do the same.
The full audit will show us exactly where the money is going, expose any unauthorized spending, and help us close the deficit without raising taxes or cutting essential services. We also need to examine why we have so many people working for the city and examine, as the mayor previously said, why we don't lay off any city employees. That is an unbelievably bad business practice. Mister mayor, with respect, opposing transparency only fuels spec suspicion and speculation. The people of Irvine deserve answers. Let's approve this full audit today, restore fiscal responsibility, and put Irvine's dollars back where they belong, serving Irvine residents. Thank you.
Our next speaker is Janine. Janine, you may unmute your mic.
Hi. So I know we've talked a lot about the city of Irvine's $6,000,000 deficit. And I agree that we need to look at every expenditure of money very, very carefully. Again, I just wanna ask whether we have a budget for this audit or not so that we can have an idea of what we're talking about. But in general, I am fully supportive and I ask the city council to vote yes on this item.
I thought it was very interesting that's to keep paying and a number of other speakers talked about how the city's budget was balanced. Yes. It was balanced recently, but by using one time funds. That should have been an indicator that something was wrong. And at that point, it might have been also good to either have sent or hire an independent audit company to see where the where the city was starting to go off budget.
There are probably a number of good practices that the city council and the city of Irvine could put into practice that would reduce the effects of some of these unbudgeted, unbound cost, city council items that are approved. And it and I do really appreciate the list that council members the the city council members have put forward as places for the audit to look into. I know this is a little bit contrary, but I don't know if you guys know who Nick Shirley is. He is one of my favorite YouTubers. He goes out and looks at government programs and sees where they the reality doesn't appear to match the numbers.
He is, in my mind, a beacon of light for transparency and accountability, and he's being slandered by his government or by by government officials and the press for having a strong one way political opinion. I kind of see that's what's happening with a lot of the speakers tonight. The city council search for transparency and accountability and understanding why we went so far off budget is being seen as a political ploy. I think every city council member should be looking for transparency, should be looking for that accountability, should be looking for where the budget went off the tracks so that we can continue to go back to the time when the city always had a balanced budget, wasn't using so much reserves. I know that we're in a transition.
A lot of
Thank you. Your time is up. And that is all mayor.
Thank you. That concludes the public comment. At this time, let me kick off another round here, if I might, just with a couple of comments, a couple of observations. I really appreciated the mix of public comments. I think there were a number of useful insights both from left, right, and center, and so forth.
Let me point to a couple of things. First of all, the city is in outstanding financial shape. None other than John Morlock, who ranks the fiscal health of cities from one to 34, has ranked Irvine as the number one soundest city in terms of its finances. Let me also point out that while there's a quote deficit of is to say overspending beyond the originally adopted budget of 2%, $6,000,000 is 2%. Relative to our reserves which are $135,000,000 there is no problem in taking care of that as we close out this fiscal year.
The next fiscal year that involves $9,000,000 That will be the subject of the budget deliberations on June 9 when we hold our council meeting and adopt a budget. I can promise you it will be a balanced budget. It will be a reasonable budget. And I would say the vast majority of people would say this makes sense. And it will not be a budget that requires us to reach into our very ample reserves.
In addition, looking ahead, there are structural issues that need to be addressed. The city is moving from a very rapid development phase with escalating real estate prices and property taxes and property tax revenues into an entirely different period in our city's growth and development. And that will require different thinking about how we balance future budgets. I have absolutely no doubt our staff and this council's up to the task, And once we get beyond adopting a budget for the next fiscal year as part of our midyear budget review, Once we get beyond that, we will begin to systematically tackle some of these structural issues. By the way, the city has been in tough budget straits before.
I hesitate to correct my former colleague, council member, and then he was mayor of Suki Kang. Suki, I was there when you and I and others, yes, we managed to balance the budget through the great recession. But fortunately, we had done the planning and were able to call on reserves as part of the bridge plan, 10,000,000 for three years in a row. We adopted a balanced budget, but we recognized the reality, the exigent circumstances at the time, and drew on those reserves. We have the wherewithal to meet these challenges and to meet these challenges without extraordinary dislocations.
I want to say a couple of things because I think I may be able to support this motion if I understand it correctly. The motion, as I understand it, calls for within sixty days for the city staff to bring forward options for further auditing. In other words, not bringing forward a proposal to hire this specific firm or that specific firm to do these and those different things. I am correct in that, I assume, Councilmember Gao, right?
Yeah. This isn't meant to be a witch hunt. I think understanding where we went wrong, how the $6,000,000 hole came about, as well as the 9,000,000 And, I'm also open to the days. It could be $65 It could be, you know, whatever feasible to staff. We just want to be able to understand. Right.
Let me let me just understand this, though. This is to bring forward options. In other words, what kinds of audits might be ordered, what kinds of things might be internal, what kinds of things might be external, and most important, how much would these cost, and how much staff time would be involved. And I'll, on the next round, come back to why that concerns me so much. I would like to just bring forward an open ended question.
I'd like Mr. Crumby and Dale, maybe if you could come forward. Would you give us five minutes worth of what it is that we already do routinely as a matter of audits, reports, reviews, fiscal controls? I think the public needs to understand it's not as though we kind of wing it. We're very rigorous in our financial dealings and our controls. I'll begin with you. And if you wish to call on Dale, that's fine. But take a few minutes if you would. Sure, absolutely. As part of our annual fiscal process, we do have
a series of audits that we go through. And I think we touched on them a little bit last week. But Dale Boulisson, our Chief Financial Officer, can go into detail into those audits and how they're conducted and who does them and when they're done.
Certainly. Yes. So, the audit is done every single year. It's done by Clifton Larson, Allen, our independent auditors. They are licensed to perform these audits.
It's a six month process. There's prescribed generally accepted auditing standards that they follow in order to issue a finding, an opinion about whether or not our financial statements are presented fairly, accurately, in accordance to regulatory requirements. In addition, they look to see they they look at our internal controls to see if there are deficiencies, any sort of issues of noncompliance with government laws and regulations. Again, it's based on generally accepted government auditing standards. Some of the key principles I shared before, independence, professional judgment, competence, quality control, and assurance.
And just a little note on our auditors, they're actually the number one auditors in the government space when it comes to municipalities. So, that's the one thing that we know as we went through the RFP process that they are actually number one in the industry in that respect. And we've gotten in routinely clean audits, unmodified opinion, no audit findings, no deficiencies in internal controls, no issues of noncompliance. In addition, the Government Finance Officers Association, provided us award. This is our forty sixth consecutive year.
We'll go more in detail on on the meeting on the ninth, where we present the results for council review, but it's something that is very thorough. There's, lots of staff hours committed to it, every single year as as we're working through it. I can tell you that the staff works diligently to ensure that we get these types of findings. And it's something that we're very proud about. And it's a routine process that we expect and we ensure that we're complying with all the policies, procedures, government standards.
It looks at all our grants. We have multiple reports that we look at and issue and help the auditors along the way. So, that's a bit about the process. I'm more than happy to answer any
questions. Thank you. I just wanted to add in there the quarterly reviews that we get and the printouts on sales tax revenue at the state level and what' coming back to us at the city and so forth, those are not audits those are regular reports that we get. So, we monitor how the outside economy is affecting our own Irvine economy, and in turn, our own finances. Is that correct?
That is correct. There's several check-in points and the quarterly report is definitely one that we do. It's not a part of our audit, but it's our routine business practice that we update. Council, our finance commission on economics, as you shared about. If costs are going up, we want to be able to share about that as well.
Good. Did you have anything further to add, Mr. Crombie? No. All right.
Let me turn to my colleagues if there are questions or responses to the motion. If I don't see any further requests, I'm gonna begin the second round myself then, alright? I look at the listed nine items here, some of which I think can probably be pretty easily struck from the list. We were audited one way and another, up, down, backwards, sideways by the federal government for all the COVID money. Anything that came to us was subjected to federal audits.
Is that correct?
That is correct.
Do we have any reason to believe that somehow there was unauthorized spending or unauthorized or unaccounted for funds in any way? Was there anything irregular about the way we handled that money?
Not that I know of, no.
I don't know why we would want to go back and audit that other than to look at what the federal government found. I don't recall any recommendations that we ought to do this, that, or the other by way of correcting our practices. And we certainly didn't have to return any money to them. Is that correct?
That is correct.
All right. Some of these other items, too, they're easily kind of answered by our own staff. I would hate to have you come forward and say, well, let's hire an auditor to, an independent auditor to review a decision that would just kind of reaffirm what we did and why and having it cost us tens of thousands of dollars or hundreds of thousands of dollars. And let me me just say that what I'd like to see you come back within ninety days is a realistic a realistic response if this motion's adopted, a realistic response which informs our staff as well as ourselves as to whether an audit is warranted, an independent audit is warranted, and if so, what it would cost. I say this because I lived through an audit which is now known historically as the fraud it.
It was a fraudulent audit that was conducted regarding the Great Park and expenditures. It started with $250,000, and that was doubled, and that was doubled again. By the time the whole thing was over, the city of Irvine had spent $1,700,000, and HSNO, the auditing firm, did such a shoddy job, it was unbelievable because it was a political audit. It wasn't a real financial audit. It started out as a so called forensic audit.
Quickly, they renamed it some kind of review. And 1,700,000 was spent. And then we had special counsel that was brought in, Al Shire and Winder, because Rutan and Tucker recused themselves because Rutan was, to some extent, subject to the audit as well, as I recall. So we talked about $2,500,000 and that audit was so deficient, so defective, didn't find a single penny in unauthorized spending nor did it find a single penny in unaccounted for funds. It was so bad that the state auditor was directed to undertake an audit of the audit.
And the state auditor found, yes, this was politically motivated. It was such a bad audit that the state auditor then referred his findings to the attorney general, who ultimately brought the matter before the board of accountancy. And that firm, HSNO, they had to pay a $500,000 fine, and they had their license taken away. Their license to practice accountancy was taken away. So I've seen these things before spin totally out of control.
I'm very comfortable with doing selective additional auditing or looking into this or that or the other where there's really something to look at. Let me say I agree with one person who called in. The list on the agendized item had eight items. Then was the office of inclusive excellence was added. That's the ninth item.
That's added in the motion. I would suggest that a tenth item be added, which is the Orange County Power Authority. There is no entity that has fleeced the city of Irvine and Irvine businesses and Irvine residents in a greater way than the Orange County Power Authority. Fifty to a hundred million dollars in overcharges to businesses and residents for what it turns out it's not cleaner electricity, just the opposite. It's dirtier.
According to the power content label, it's dirtier. So I would want OCPA on there with an understanding of why we have stuck with this agency to our detriment for so long. So with those comments in mind, I'll turn to my colleagues who now wish to be heard. Councilmember Liu, followed by Councilmember Tresieder.
I think we had already made that pretty clear that we're asking for options to come back. And, obviously, if there are already audits, then please let us see it. I mean, transparency is our goal. I want to say that last week, we voted on a motion to ask for audit, to ask for an audit. And it didn't actually target on any of these.
It was just a general audit. And it was mentioned once in the motion. And so, what I think is more thoughtful is to say these items that were questionable, or at least when we saw the result of them are questionable, that we want to see what happened. And I don't mean it in a malfeasance way that somebody was doing this intentionally. It's a do we make a mistake?
Do we do something wrong? Like I said before, this is about where can we find an ineffective, inefficiency that we need to cut and adjust. So, I want to make it very clear that this memo is not about that. It's not about finding fault, or we're not going to have we don't have a conclusion. We're just it's about fact finding.
And that's the essence of it. So, I hear people say, please don't vote for this. We're spending more money. I'm also not for wasting money. I mean, the last two votes showed that I'm very concerned about how we spend our money. So, I would like to see options come back. And if there is a cheaper option, obviously, that's what we're going to go with. So, I want to make that abundantly clear that the intention is not to blame anybody. It's not a witch hunt. These are things that we see that there's something that did not look right.
We probably wasted something. And so we want to see that. And I don't really want to hear that we are this is about a personal vendetta or anything like that. We're just trying to find out what how we can improve moving forward. That's all I'm saying.
Thank you, Councilmember Liu. Councilmember Tresidder.
Thank you very much, everybody, for your comments. Was listening to you, mayor, and I just wanted to confirm the audit you were talking about was the HSNO audit. Is that what you're talking about?
That's correct.
Okay. There was also an Orange County grand jury report that was done over that same time that examined the planning management, financing, development of the Orange County Great Park from its creation through 2014. And that report concluded that the Great Park project suffered from poor management, excessive political involvement, weak financial oversight, lack of transparency, and unrealistic planning assumptions. So from
I can tell, even if you discount the HSNO audit, it seems like there was there was smoke there for sure. And I would like to be responsible stewards of our taxpayer funds and make sure that we are not repeating any mistakes. I, am very interested that the mayors does not want to look at the COVID money and have made a note of that. I also want to point out that of the many public speakers, which I appreciate all their time, as far as I can tell all but one of them who said they didn't want an audit, they are, yeah, they're allies of the mayor. I also wanna point out that, like, the people who agendized this did not really have an option to bring out a staff member to support what we were saying.
And so I think a lot of this, again, is kind of theater. And I think it is designed to create some chaos where definitely up here, it's hard to know what if what we're seeing is is what really is true. And so I think this is one of the ways that we can try to address this chaos that has been produced by trying to really get to these facts. And I think that is the responsible thing to do. Thank you.
I see no other requests. I would before moving to a vote I would like to ask councilmember go if he would include as item number 10 here OCPA and the city's, at the very least, the city's expenditures on electricity and why they have been excessive.
Yeah, that's fine.
Alright. And then, again, just to be clear, we're directing staff to come back. Mr. Melchin, you have a concern?
I was only trying to make sure that the second to councilmember goes motion
All right.
Consented. That was all. I was trying to figure out who the second was.
All right. I can't remember myself.
I can second it. I'll second it.
All right. Good. So we have items one through 10.
Oh, I'm sorry. I need to say whether I want to add that friendly amendment. Correct?
Yes. You were the second.
I decline.
All right. Well, then what happens then? Then it becomes an unfriendly amendment. I have to actually make a motion? All right. I'll move to amend the motion offered by Councilmember Goh by adding an item 10, which is the Orange County Power Authority, especially the excessive city expenditures for electricity. I'd like to see that audited. Is there a second to my amendment? You're not gonna add the OCPA? Alright. No. I mean, I'll
second it because the maker of the motion said it was okay. So
Well, the maker of the motion Just have it re seconded. Didn't, it has to be
I'll second I'll second William's motion if that whatever the city attorney
It wasn't William's motion. It's my amendment because the second to William's motion did not accept the friendly amendment, which William did accept. Councilmember
Look. The whole thing is being done to skewer you, mayor. It's obvious. Councilmember Yeah. Richard Cedar, it's so late. Who cares? Right? So the maker the guy he says it's okay. So whatever we have to do, procedure, let's just get going.
All right.
If the rest of rest of this council wants to just shove it to the mayor, fine. If not, I'll second it to add that thing that council may go on it. Okay? So do whatever you all gotta do so we can get out
of here.
So I offered an amendment to add number two, CPA, especially the city's excessive expenditures. You have seconded that amendment. Will the clerk please call the roll?
Point of order? Yes. I am signed up to speak, sir.
Yes, you have. Go ahead, Councilmember Traceter.
Thank you. The reason that I declined is because OCPA has already been audited at least three times that I can think of off the top of my head. One is the OC grand jury, the second is the state of California, and the third is the county. They all had findings. This was earlier on in the life of OCPA. OCPA has gone through, addressed all the findings. The state gave them a clean bill of health addressing the audit. I don't see any reason why we should trouble them again. I think if we're gonna talk about political motivations, I think that specifically is very much a political motivation. Thank you.
Let me respond to that with all due respect. This is not to seek an audit of ocpa. It' to seek an audit of our relationship and transactions and decisions that have resulted in these excessive expenditures that have had a direct impact on our budget. And so, my amendment would add that to the list of items that could or should be subject to some kind of audit or review. How do we manage to screw up that decision making?
So, the motion is, you ask to be recognized again? Councilmember Treseder.
just want to point out procedurally. Thank you. All we have to do is vote down this current substitute motion, and then we can go on and vote on the original motion.
It's an amendment. It's an amendment that I offered, not a substitute motion.
That too. We can just vote down on the amendment and then go on support the original motion if we choose.
The amendment is properly before us. Would the clerk please call the roll on the amendment? Councilmember Carroll.
Yes. Councilmember Goh.
I prefer to separate the item if the mayor would like to bring back a separate item. That's my so I would vote no.
Councilmember Liu? No. Councilmember Martinez Franco?
Councilmember Trecedor? No. Vice Mayor Mai? No. Mayor Agram? Yes. Motion fails. Three to four. Councilmember Goh, Councilmember Liu, Councilmember Trecedor, and Vice Mayor Mai voted no.
Alright. We have the main motion in front of us. I do want to ask Mr. Crombie. Councilmember Goh said sixty sixty five seventy days let' just target this for first meeting in September no later than the first meeting in September. I think we do not have a second meeting in August. Is that correct? That's correct. So where are we now? March, let's see, we're May, so June, July, August.
Oh, okay, if we just go two months, we're in July. Is that correct?
There's a council meeting on July 14. That would be sixty three days.
Alright, why don't we target that then? Fair enough? Okay. I assume that that's satisfactory. Okay. And let me just say, because I will be voting for this with the understanding that you're not coming back to us with an RFP or some blown up deal. You're coming back to us with our options for selective audits, reviews, whatever. Is that correct? That's correct. Alright.
With that in mind, would the clerk please yes? Okay. Would the clerk please call the roll?
Councilmember Carroll? Yes. Councilmember Go? Yes. Councilmember Liu? Yes. Councilmember Martinez Franco? Yes. Councilmember Trusieder?
Vice Mayor Mai? Yes. And Mayor Akron? Yes carry 70.
Excellent. That concludes our business. The time is 10:41. With that is there a motion to adjourn Also move. Is there a second? Second. Seconded by councilmember Liu. Will the clerk please call the roll. Councilmember Carroll?
Yes. Councilmember Goh? Council member Liu. Yes. Council member Martinez Franco. Council member Trecedor.
Vice mayor Mai. Yes. And mayor Agram. Yes. Carry 70. Thank you.
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