City Council - Regular Meeting

I'd like to call the March 3rd, 2026 regular city council meeting and special housing authority meeting to order. Let the record reflect that all council members are present tonight. Votes this evening will be recorded using the city's electronic voting system. Move on to public session. At this time, the city council will convene to consider public matters. If you wish to speak, please fill out a blue speaker card and provide it to the clerk. If you wish to submit any written materials, please provide them to the city clerk. They will be distributed to the city council. As required by state law, when speaking on an item listed on the agenda, limit your comments to the subject of that item. If you wish to speak on a subject not listed on the agenda, you may speak under the public comment portion of the meeting. Finally, please address your comments to the city council. Staff will only respond to questions from the city council, not from public speakers. We will know now move on to the invocation. And the invocation tonight will be provided by associate pastor Beth Webb from Foothill Family Church.

Good evening. Who do I face?

Good evening. Thank you for having me. Let's all pray. Dear heavenly father, you said in your word in 1 Timothy 2 that we should pray for our leaders and for all who are in authority so that we would live a quiet and peaceable life in godliness and in honesty. So we pray today for our leaders at the national level, at the state level here in California, and at the local level here in the city of Lake Forest. We pray Lord that you would influence them and give them understanding and wisdom to make decisions that promote peace and prosperity and godliness. We pray that you would open their eyes to truth working in their hearts and in their minds. Lord, put your hand upon our nation and our leaders. Protect our leaders, our community, and our nation. You promised us this divine protection in Psalm 91 to those who trust in you, that you would cover us and protect us, and we would not need to be afraid of the terror of the night or the arrow that flies by day. that a thousand may fall at our right side and 10,000 at our left, but evil would not come near us. Thank you for that, Lord, for our nation, for our state, for our city, our leaders, and for our military. We give thanks for them and we ask you to use them as instruments of righteousness. Grant your wisdom in our city this evening and in this time. We pray for peace and protection for our law enforcement and for all those who serve in our community in Jesus name.

In Jesus. Amen. Amen. Thank you. Thank you, Miss Beth. Tell Pastor Mike that Scott says hi and we love you guys preaching in our city. God bless. [clears throat] We'll move on to the pledge of allegiance to the flag of our country. It'll be led by Scout Troop 818. Hello all, please stand if you are able and face the flag.

I pledge of 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 be seated. Ready? In three.

Sorry. 3 2 1 3 2 1 [applause] I was just saying saying he's got a very nice handshake, right? Nice and firm. I know you taught him that, right?

So, now we'll move on to our student liaison. A report will be provided by Ethan Barrow, student liaison from El Toro High School. [applause] The month of February was a highly eventful at El Toro. It marked the end of winter sports seasons in the beginning of spring sports seasons. Also, our school held events such as going gold week and our model United Nations program's annual trip. At the beginning of this month, student athletes were celebrated at a signing day event in our gym. Students signed to compete at universities such as Cal State Fullerton, Concordia, Biola, and many more. The career expo was also held in the gym just a week later. Careers such as graphic designers, firefighters, medical, business, and even AI were put on presentations at our school. Our school's model United Nations program traveled to Chicago on its annual trip to attend a conference for this program. This was one of the nation's most prestigious conferences held annually and this year is in Chicago. These students represented El Toro with enthusiasm despite the freezing weather. For the first year at our school, we decided to do an event called go going gold week. This week, our ASB and staff held events and fundraisers to encourage students to donate to pediatric cancer research foundation. We received tons of donations and we also exposed students to the dangers of pediatric cancers and raise awareness throughout our school. As for sports, our boys soccer team lost to Sunny Hills High School in the second round of CIF playoffs and our girls soccer team lost in the first round of CIF 4 to zero. Softball finished off the first week of their season with an 0 and1 record, losing to Santa Margarita High School 1 to zero. Finally, baseball ended the first week of their season with a 2-1 record, beating Sonora 4 to3, Catella 9 to7, and losing to Laguna Beach 6 to 5. In conclusion, February marked a month of student involvement and successful student events on campus. Thank you and go Chargers.

Thank you, [applause] Ethan. Thank you for your report. And so, colleagues, if you'll indulge me for a second, when I was in the Marine Corps, we lived by a a set core of VA values of honor, courage, and commitment. Honor demonstrates the maturity to act responsibly and the ultimate in ethical and moral behavior. Courage is the inner strength to do what is right and master fear when facing challenges or authority. Commitment shows a spirit of determination to fulfill moral obligations regardless of personal consequences. I believe that character is not defined by who we follow but what we stand for when the path is difficult. Standing up for yourself against the pressure of adults was not an act of defiance. It was an act of honor. It took courage to bridge the gap between knowing what is right and doing what is right. Your actions represent a commitment to excellence and accountability. You did not seek the e easiest path but the one that honors the values you intend to live your life the rest of your life by. To Mr. and Mrs. Barrow, you clearly raised a brave young man. Thanks, Mayor. And of course, this is just a reminder of how you stood up and you spoke truth in the light of a difficult situation. and we want to recognize and applaud the decision that you made to speak the truth and to stand up for the values that you have have been taught and we're thankful that we have youth like yourself as an example and inspiration to others to do the same and just on that just much gratitude that we want to express to you. Thank you very much for your reports uh every uh month for us and we appreciate that too. So thank you

Ethan, um it's it the the tougher choice not to go with the flow and the fact is to stand up and keep your eyes on the goal and the goal is your education at El Toro. So, we're so all awful proud of you and the way you stood up and corrected what actually happened that day. So, thank you for your reports at El Toro and as always, go Chargers. Thank you.

Thanks again. And we have a young marine here sitting in front that he's he's going to be following those footsteps pretty soon. So, we're going to move on to public comment. If you would like to make a comment, please fill out a blue speaker card and give it to the city clerk and your name would be called. Comments will be limited to three minutes per person. The council and staff will not respond to questions or comments during the comment period. If you leave your contact information, staff may contact you to address your issues raised during the comment. When you are called to speak, come to the podium. Your three minutes will beun will begin. When the green light is on, the green light will remain on for two minutes. When the light changes from green to yellow, speakers will have one minute left to conclude their comments. When the light changes from yellow to red, your time has concluded and please return to your seat. A timer is not displayed on the screen. Madame clerk, have we received any re request to speak?

We have, mayor. Um, our first public commenter is Walter Norrega.

Thank you. Good evening, Mayor, Mayor Prom, City Council members and staff. Walt Narria Lake Forest residents since 1978. My grandfather, grandmother, and my father were immigrants. My mother's parents were also immigrants. They all came through Ellis Island and had to go through a cursory medical inspection before they could enter the US. They also had to have families based sponsors who agreed that they would be legally bound to support them. Sponsors also agreed to be liable for repaying the government if the immigrants they sponsored received government benefits. These requirements are still in effect today and have not changed. My grandparents were legal immigrants and appreciated the chance to settle in this country. They were not scoff laws like today's non-citizen illegal border border border crosses crosses and visa overstay abusers. I understand why non-citizens want to come to our country. It is probably for the same reason my grandpa my grandparents wanted to come to our shores. Opportunity, freedom, and jobs to support their family. Unfortunately, hundreds of thousands if not millions in this world want to come here, but most are in the lowskilled category. H2A and H2B visas are issued but not but for obvious reasons are not in the millions. I am a firm believer in the rule of law. The unlawful CI non-citizen entrant who evaded immediate detection needs to self-deport and attempt to reenter legally. They are here without legal authorization are subject to ICE enforcement under the federal law. That

being said, [clears throat] I have sent the council a formal request to place the following item on the agenda for discussion and possible action. I respectfully ask the council to consider a resolution expressing support for a US immigration and customs enforcement actions while they are admin administering federal immigration laws. This would be cons consistent with the city council's unanimous 2018 resolution opposing sanctuary policies and supporting federal enforcement of immigration laws. These actions promote public safety and the rule of law. Additionally, for those who don't understand how a bystander should act during the apprehens apprehension of a subject, I will enlighten you. When you are told by officers of the law to stand back and not to interfere, that is a lawful order and must be obeyed. If you interfere, you can be arrested. If you put your hands on an officer, you can be forcibly taken to the ground and seriously injured. If you attempt to cause bodily ham to an officer, you can possibly be severely injured and even lose your life. lose your life dependent on the severity of the attack. Let law enforcement do their job and everybody will be safe. Thank you.

Thank you for your comments. Our next public commenter is Connor T. Hearn.

Hi, my name is Young Marine Corporal Hearn and I'd like to talk to you about the MCS test in Young Marines. We are more than just a youth group. We are a leadership program for boys and girls ages 8 to 18. Our program focuses on three pillars: leadership, teamwork, and discipline. Through rigorous recruit training and ongoing training, participants learn the Young Marines obligation, which emphasizes leading by example and living with integrity. In a world full of distractions, the MCS Tustin Young Marines Unit teaches the fundamental values of the Marine Corps honor, courage, and commitment. By embracing these values along with the core principles of the program, participants can achieve success in anything. Leadership is not merely a title. It is self-discipline to do what is right, even when no one is watching. The MCS Tustin unit exemplifies service and action through my involvement. I have had the honor of attending encampments at Camp Hamilton, California, traveling to Window Rock, Arizona to honor the Navajo code talkers and visiting Pearl Harbor to spend the night on the USS Missouri and to layered wreath at the Punch Bowl memorial on Pearl Harbor Remembrance Day. The young Marines often honor veterans, one of my favorite things to do. We also give back by performing color guards and marching in holiday parades such as the Fourth of July Tustin parade. As the official drug pro prevention program of the United States Marine Corps, the MCS Tustin Young Marines also promote a healthy drug-free lifestyle among their peers. They are not just students. They are the responsible American citizens that our future requires. Lake Forest serves as an ideal training ground for these young leaders.

The city's 32 public parks and trails of Whiting Ranch provide spaces for practicing teamwork, physical fitness, and endurance. There's a direct link between this program and Lake Forest commitment to helping youth become the leaders of tomorrow. The accountability and discipline learned at at MCS Tustin are the same traits that drive local businesses to thrive. Whether it's a small startup or global headquarters, Lake Forest succeeds because it's prioritized excellence at every level. From business development program to young initiatives, it is one of the best cities in Orange County for pursuing innovation and enjoying a fulfilling lifestyle thanks to its investment in the people. By supporting the MCS Tustin Young Marines, you ensure the future of the community are prepared and ready to lead. Thank you for being part of a city that values both progress and principle.

Thank you. [applause] Our next public comment, promote him to sergeant right now. [laughter] Our next public commenter is Mark Hermanson.

By the way, Lauren,

good evening everyone. um $59, $118, and $74. Why are those numbers important? Because according to Google, as of 2008, that's what we pay our commissioners and our council. Now, this city runs on multiple levels. You have the people here who, as long as nothing bothers them, they never show up. They go through their life. You have the people that show up to yell and scream or protest about something, get their little Facebook Tik Tok moment, then they leave. We have people who come in, speak about a problem, then they leave. We have people like uh Mr. Okconor back here who's here at every single meeting. Uh and he generally stays till the end. Like him, love him or hate him, he's here all the time. Then we have our commissioners that guys, I'm telling you, we're not paying them enough to even buy a Toyota Corolla. So, they're Why are they doing that? And I was speaking to one of our commissioners the other night. I'm sure we have some people that just love having the title, maybe some that have a perceived sense of authority. And then we have some that they actually care about the city they live in. And we seem to forget that they're giving up their personal lives. They're doing have to do research. They're showing up to things and they're out here for our city. Everybody forgets our city council is not full-time. Everybody has jobs. Everybody has lives they have to live. And when we come up here and demand that you proclaim something and demand that you say this or you say that, a lot of times we tend to forget in this climate, that can hurt your personal businesses. That can affect your personal lives. And sometimes there's just legally nothing you can or cannot do. But I got to ask, how many people in a city of 90,000 are stepping up for $700 a month to give up

a lot of their lives to serve their city? Well, I think it's pretty obvious when you look in this room, there's about 20 people who show up on a regular basis. So, what I would tell people is when you run into our commissioners, when you run into our council out in public, be a little respectful. It may not be time for them to discuss city business. Maybe it's time to just walk up, shake their hand, thank them for serving, or asking how their day goes. Their whole lives do not revolve around city business. That's what these meetings are for. That's what the blue cards are for, and that's how it should be handled. So, please have a little respect for the people that do serve us. Thank you.

Thank you for your comments. [applause] Our next public commenter is Bob Holtzclaw.

Bob Holtzclaw, resident of Lake Forest. Uh, I see our illegal alien is still at the bus stop in front of Ralph at El Toro Road. Uh, and still yelling at people walking by. I'm sure he's mentally ill. And uh, I told him that Mayor Peo lives in that district and he raised his hand with one finger and said he was I thought he said he was for number one, but I guess he got confused and raised the wrong finger. uh you mentioned 383 uh uh homeless died uh in Orange County and three of them were from Lake Forest. Well, this man that sits at the bus stop will be our first for 2026 because of city neglect. Now, let's talk about ICE. Uh during the uh two terms of Obama, 3.1 million illegal aliens were deported just for being in the country. He didn't care if there were child molesters, rapist, or just coming over for a freebie. Uh no whistleblowing or protest for that. Obama built uh cages along the border to house these illegal aliens. Still no whistleblowing, no protest. What happened uh Trump and what happened was is when President Trump was elected, all of a sudden everything went wild like uh he built these things and uh the socialist press put it that way. My cousin uh lives in Laredo, Texas,

right near the border. And uh her neighbor is a 20-year veteran of the Border Patrol. his uh his assessment of ICE is that they haven't changed their tactics in years. It's the same the rigged thing that they have always done. But why do we have protests now? Uh today ICE is trying to arrest convicted criminals first and uh they are being blocked by socialist protesters. They throw uh frozen water bottles at ice that I saw on TV. So, I can't deny that. And they also invade uh uh a church uh service and some of them have been arrested. So, you know, we've got to look at this a little bit differently. And uh let's uh these people have been duped because it has nothing to do with I Thank you for your comments. [applause]

Our next public commenter is Andrew O' Conor.

Good luck.

Have a great future. Good evening council city manager staff Andrew Connor Foothill Ranch what almost 40 years coming up on. So I didn't know March [clears throat] 3rd 2026 was groundhog groundhog day in Lake Forest. Why do I say that? Because the five councilmen just acted like groundhogs saying you know congratulating Ethan job well done. But let's go back when that all happened. What? Three weeks ago. Four weeks ago it happened. Where were you guys? You weren't there. But now, now this it's cleared stuff up here. Good job, Ethan. Courage, all that. I know you can't speak, but let me ask you to raise your hand on these two names. Raise your hand if you know Jimmy Martin. Okay, let the record show no. Raise their hand. Crystal Turner. Anybody know Crystal Turner? I should say Dr. Crystal Turner. Let the record show them raise their hand. Jimmy Martin is the principal at Delo High School. Crystal Turner is Dr. Crystal Turner, superintendent of Saddleback Valley Unified School District. Let's go back and listen to Ethan that night that he had to come up a second time and said his life was endangered, his family was endangered, he was threatened. What did you five guys do? Did you go go home and get on the phone and talk to Principal Martin? Did you go home and get on the phone, talk to Superintendent Turner? Were you at the campus the next morning with her little pal pins on? You could even wear your marine outfit if you want. Mayor and Councilman Serbo, you should go to that principal's office and say, "Get all the kids in the

auditorium right now. We're the city council of Lake Forest." Two of us are Marines. This is how we run our city. We don't threaten. We don't do that kind of stuff. And furthermore, don't go bust out of class in 2 o'clock in the afternoon and go up in the corner of El Torren Tribuko and put the American flag upside down because two of them were Marines. You have a picture of it. And you sure as hell don't come to my country waving another flag. If you wave that flag, you love that flag. Go with that country. This is the United States of America. So wildly presented by Walter and by Mr. Holtzclaw who's also military. I'm not military. 100 100% respect. Didn't join the military. But you five guys need to step it up and quit putting your chest out there after the fact.

Thank you for your comments.

Who's the next one? Our [clears throat] next public commenter is Lorena TZ. Um, hello council members. My name is Lena and I've been a resident for Lake Forest since the early 90s. I'm a PTA member on three different schools in this community and I also work here in a school in Lake Forest. I'm expressing concerns today about the level of service we're receiving from Orange County Animal Care. I understand this organization [clears throat] serves many cities spanning a great distance, but the response times that I've experienced have not met the needs of our community. I've seen a bird trapped in a school and were told that no one could come out for this service. We've had a loose rot on my son's campus during the school day. Students had to remain inside the classroom where they were told um that they had to wait. [snorts] Orange County never came out and a staff member and volunteer ultimately had to handle it. There was a dead skunk near my elementary school where it remained for days until one of my neighbors had to remove it himself. These situations um have placed responsibility on the school and the residents rather than the agency that is contacted contracted to provide services to our city. As a longtime resident and school community member, I respectfully ask you to consider to carefully evaluate this contract and prioritize timely and reliable animal control ser animal control services for the city of Lake Forest. Thank you for your time.

Thank you for your comments. [applause] And our last general public commenter is Sean Fletcher.

Good evening, city council members and those attending in person online. My name is Sean Fletcher and I have been a resident for 23 years. I'm here to address what occurred on the January 3rd council meeting. The purpose of a council meeting is to serve as a transparent public forum for setting municipal policy, enacting local laws, adapting budgets, and approving contracts. These meetings exist to ensure accountability to facilitate the open conduct of city business in according with the Brown Act. At that meeting, members of the Canyon Democrats read an anti-CE resolution adopted by King County, Washington. While individuals certainly have the right to express their views, I question whether reading a resolution from a jurisdiction with a very different political and demographic makeup that the then the city of Lake Forest was relevant to the council's work. Add additionally during that public comment period, a speaker criticized Yelour High School student representative for not mentioning the anti-ICE student walkout. In my view, it was inappropriate to single out a student in that matter. The student lays on serves as a representative of the school community and is president to report on student achievements, events, and activities, not to weigh in on campus political matters. Since the walk out was raised, I would also like to bring out another perspective. Participating students exercise their first amendment rights, and that is an important civic lesson. At the same time, students should understand that exercising those rights does not exempt them from school policy or potential consequences. Under state education code, leaving campus during instructional time may be considered a truency and teachers are therefore not required to allow makeup work for assignments missed as a result of the truency. In addition, while school personnel cannot physically restrain students from leaving, a lack of intervention should not be interpreted as a school's permission to participate in the walkout. [snorts] It's also worth reflecting on the purpose and effectiveness of such actions. Did participants believe that the workout would directly influence policymakers? Were these were there meaningful discussions between the student

protesters beforehand about the issues involved or students just using this as opportunity to miss class? Would organizing demonstrations outside of school hours where visibility would be significantly greater have been more impactful to their message? Civic engagement is important, activism can play a meaningful role in shaping public dialogue. How are to par paraphrase Dale Dale Carnegie to truly influence others you must bridge the gap between logic and emotion winning both their minds through clarity and their hearts through connections. If the goal here is to change hearts and minds it is essential to approach this matter thoughtfully and respectfully. Public public uh publicly criticizing a student for fulfilling their role or diverting city council meetings from their intended business is unlikely to advance constructive dialogue or bring our community together. Thank you. Thank you for your comments. [applause]

That's it for public comment. All right. Thank you. We'll move on to the consent calendar. All matters listed on the under the city council and housing authority consent calendars are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless members of the city council or staff request items be removed from the consent calendars for separate action. Have there been any requests to remove an item from the consent calendars? There have not been any requests from council members or staff. However, we do have public comment on item number two. Item number three and item number four.

Mayor, I'll make a motion we um move the rest of the housing authority and the rest of the city council consent calendar. I will second that.

All right, let's vote. And thank you, council members. That motion passes unanimously. And the first consent calendar item with comment is the minutes of the regular meeting of the city council held on February 17, 2026. And the public commenter for that is Andrew O' Conor. Andrew kind of ranch. So, back to the last meeting. Couple of things. I notice there's a m up to the front that wasn't clarified on the yellow sheet about u Councilman Tedimemer if you about his absence. I don't think city clerk broadcast that. So, is that going to happen or not? But we don't know where Mr. Tenemer was last time because yellow sheet up there is saying something different. So I guess we don't announce them public city manager or city attorney. If you don't read the yellow sheet up there, you you don't know where this councilman was. It's interesting. But anyways, the uh Lunar New Year. [snorts] Well, that was pretty interesting. So it's supposed to include Chinese, Indonesian, Korean, Malaysian, Singaporean, Vietnamese, and many others. I counted six, maybe eight. But lo and behold, our disgraced councilman, you know, the one that beats up women, comes up [snorts] and he's going to be the Lunar New Year guy. And he's going to give a proclamation to the homeowner board member over at the Meadows. I'm going scratch my head. Lunar New

Year, board president of the Meadows. How those two go together. Mr. Council Meister, I I just don't get how that crosses over the Lunar New Year, what it's supposed to be all about. And yet this guy is a homeowner from the Meadows. Can we get some clarification on that, sir? Oh, she's going to look at me stupid. I just thought it's bizarre. And as long as I'm talking about the Meadows, let's go back in history. Mr. Vitz, Mr. Tamer, when Nikki was the mayor and everyone in Lake Forest had high hopes that that Mr. Okconor, did that happen at the last meeting? Yeah.

No, it didn't. Talk about the last meeting.

Okay. So, tell All right. See, this is how it works. Shut them down. Democracy, young man, doesn't work. But you saw it yourself. So what I want asked last meeting tenmer wasn't here is to clarify what he said from the meeting before on how you're going to protect my house from going up and this is um 2007 almost 19 years ago. Mr. Gentle, you haven't done anything and you're saying helicopters and this is out of service. You're not clear. And the other thing,

Mr. Okconor, he wasn't here at the last meeting. I know. So, I'm trying to clarify what he said because he wasn't here. And the yellow page up there says completely different. So, I'm holding him accountable. Mayor, he can't just duck out and not be here because I want

Thank you for your comments. The next item with public comment is the award of contract for retail recruitment consulting services. And the first public commenter for that is Mark Hermanson. Good evening, council. Um, reason I wanted to speak on this one is having a business here in Lake Forest, this is something that could, if it's what I think it is, it could be very interesting to me. Uh, the problem is our website's not very uh, I should say intuitive maybe on understanding what's going on with it. To me, it kind of reads uh, like we have a consultant to have retail services in our inner city and to help us find them. Um, if that is correct, it's maybe I just don't know what I'm doing, but it would be nice to be able to gather the information and learn more about it. Um, especially for those of us, like I said, that have businesses in the city. Uh, a improvement to our website would be a huge help on something like that. Uh, so if if it is what I think it is, it is definitely something I would want to uh promote and support. But that little area is just what we have where the issue is. So, thank you.

Thank you for your comments.

Our next public commenter on this item is Andrew O' Conor. Andrew O' Conor, you know, 20 years in the business and 20 years in education. And whenever I hear the word consulting, it means the organization themselves has lost control of not knowing where the organization's going. So they have to go outside the organization because they're messed up. We got to hire a consultant to figure this out. Well, here we are. We've had Cosmon through here twice. This cost us $180,000. And now we're going to spend $55,000 more with the retail coach to tell us how to get business. Ain't that just dandy? Do you ever hear a guy by the name of Cameron Crowner? Mr. Mr. mayor. His name's all over the buildings down there in the arbors. Yeah. He's a guy that's trying to run all all those spaces down there up here in Fhill Ranch. It's strategic retail advisors trying to run out everything up here. So, is a retail coach working with these people? Are they going behind their back above them? This here, it doesn't tell anything. What it tells me is you guys are lost and and what is it you're trying to do? Take for instance up here at Fiddle Ranch. The dynamics of a Denny's has been there for decades just poof disappears and now we have a the biggest joke on social media. We have a lobster house. They can't even spell the word fantasy

right. Can you imagine that? Fantasy. I think it's fourth grade word. They spell it wrong. We allow that in our city. They're Chinese. He probably loud. He said, "That's okay." I don't understand the dynamics of that. I understand that you guys understand the dynamics of what's changing in the community. You can't see for yourselves that you have to go out and get a consultant to figure things out for 55, thou what do you expect them to do really? Most of the shopping centers are full. We I got a lot of boutique restaurants. You should be really happy. Mayor Piccano that the Brew opened up their garden. I'm sure you'll be a honored guest there. It's they're doing a soft opening, but there it is. The Brew Garden is open. I don't see in the community where we need other restaurants. I see the Chinese coming in pretty strong. The councilman's over at Danny's Beastro every night when I drive by his German sports car with the roof is down. Isn't that right, councilman? You're there every night. Not supporting American restaurants, but I see your car every night. Danny's Beastro, supporting the Chinese. Two-faced. So, I think we're spending our money wrong. They're not going to bring us anything.

Thank you for your comments. Our next agenda item with public comment is agenda item number four and that is the amendment to the classification plan and compensation schedule for fiscal year 2526 and amendment to exhibit A of the personnel rules and regulations and the public commenter for that is Andrea Alexander. Good evening, mayor and council. Um, thank you for my hearing device. Again, I just wanted uh to make sure I'm clear on this that the city ha after extensive study has determined that in-house hiring of building and safety personnel is more cost-effective than entering into a contract for services with an outside agency. I am loving this. I am loving that the staff created that they did a study to make sure that we would save money. And then my feeling is the city would then have more freedom in hiring personnel based on patterns and necessity, not relying on a contractor to do this, someone we contract with. So I just wanted to applaud you, applaud the staff and applaud for the council for approving that. Thank you.

Thank you for your comments. That's it, mayor. Okay. I'll entertain items two, three, and four. The remainder vote.

Thank you, council members. And that motion passes unanimously. Okay, we'll move on to discussion action items. Um, madame city clerk, can you please read the title of item number five? Yes. The title of item number five five is the appointment of planning commissioner to fill vacancy expiring December 2026. Thank you. Madam city manager, can you please introduce this item?

Thank you, mayor. Um, tonight we have a planning commission appointment on the agenda. And so, per city council policy, it is a onetoone appointment. And so, council member Yu's, former planning commissioner, did turn in a letter of resignation. Um, the city clerk advertised the vacancy for the appropriate amount of time and we have received applicants. So, at this time, we would turn it over to council member U to make his appointment. The appointment becomes official when that nomination that council member U makes is seconded by another member of the city council. So, with that, I will turn it over to council member U.

Well, first of all, it's public comment here. All right. I would like to select Jolene Fentes and Miss Fontes long-term service on the planning commission and her background is most suitable for this position here. Thank you. I will second that.

Okay. So, do we have any public comment on this?

We do, mayor. We have one public comment and that is Andrea Alexander. Good evening again. I um I want to share something with you all about uh a friend of mine, a colleague of mine who applied for this position uh when you first appointed people. council member U and uh she came to your office and had an interview and in the course of the interview you were very um taken with her that she was very qualified for the position and you let her know that and you let her know your intention to um to be to nominate her and then you asked her if she'd change her party and I do not think that is an appropriate question. This council is supposed to be nonpartisan. I understand this is hearsay because she's not here telling her story. I'm telling it for her, but I recommend that you call her and you get ver verified get verification of the facts. She then came to the meeting. She denied doing denied that request of changing party. She came to the meeting expecting to be nominated. She was nominated and then no second. No second. So my first when she told me that my first inclination was that was there a violation of the Brown Act and then I thought well maybe they did a one one to one to one call a phone tree or something to get what they wanted to get what you wanted. And then

she sat in the audience here and witnessed that. And you, council member, you had another person, and it happened to be Francisco Barahas, pulled him up just like that. You had him ready. So I suspected something fishy. Can't prove it, but it was awful. It was the way she was handled and treated and I did not like that at all. And to ask her to change her party was appalling. I think our city manager should do a tutorial on what should be done, how what's appropriate and what isn't. Um I I don't know what to say. I'm just Thank you. I guess

thank you for your comments. So, we'll move on to item number six. Madame City Clerk, can you please read the title of item number six? Thank you, Mayor. The title of item number six is the Lake Forest Equestrian Facility Lease. Okay. Madame City Manager, can you please reintroduce this item?

Thank you, Mayor. Tonight, we have a presentation by our economic development and housing manager, Adrien Grahala. Good evening, mayor and members of the city council. The item before you for consideration is the Lake Forest Equestrian Center lease agreement. The equestrian center is located at 25201 Tribuko Road and encompasses approximately 7.6 acres. The site is bordered by Srano Creek on one side and Serrano Creek Park on another. The current lease was executed in 2006 and expires in August of this year. As you can see from the image above, the site is situated nearby residential and commercial uses as well as an elementary school. The equestrian center has been in operation since the 1970s and the county transferred the lease to the city after incorporation in 1992. The city and Sorrano Creek have entered into its current agreement in August of 2006. It's been amended twice. The first was to simplify rent provisions and expand the optional services and uses the leie may operate at the property. The second amendment reduced maximum number of horses allowed on the property and ensured the implementation, operation, and maintenance of storm water best management practices. The proposed annual rent would increase by 1% annually. The first five years are included in the table on screen. Over the course of the 20-year lease, the city would generate approximately $1.8 million. The proposed lease lists out required and optional services. Some required services include boarding

of horses, horseback riding lessons, and tax storage. Some optional services include rental of tax storage sheds, blanketing, composting, and camps to name a few. The Lake Forest Equestrian Center is a unique recreational asset here in the city. Approximately 30% of its border border accounts are residents and an even greater number of residents interact with the stable by taking lessons, attending summer camps, group functions, purchasing compost, and touring the grounds. The average employee tenure is 19 years. The center recycles a majority of its waste stream. It produces organic compost. It's a designed evacuation center for horses in the canyon areas. And in 2024, OCTA donated pipe corral so it could expand its emergency capacity when emergencies occur. And the center also makes donations to local nonprofits and schools to help promote gardening. At this time, staff recommends the city council approve the lease with the Lake Forest Equestrian Center, Inc., DBA Srano Creek Ranch and authorized the city manager to execute and the city clerk to attest the document. That concludes my presentation. Matt Ra, the operator of the Srano Creek Ranch is here this evening and we're available to answer any questions you may have. Thank you.

Okay. Before we ask you any questions, Madam City clerk, do we have any request to speak on this item? There are none. Okay. Thank you, colleagues. [clears throat]

Yeah. Uh I'm going to make a motion that um we accept the lease opportunity. The fact is that Lake Force has a long history and um one of our mottos is remall the future but remember the past. The fact that it's appropriated that the Sorano Creek stable is right below Heritage Hill which actually is the one of the oldest buildings in all of Orange County being the Elobe home of the Soro family which was granted this valley as a cattle ranch. The fact is that we're losing equestrians um locations throughout the county of Orange and the fact that Lake Forest has a long history of being an equestrian city. Matt keeps that alive. And so um this is a great um part of our city, a historic part of our city. And that fact is many of our young people, my daughter included, have learned how to ride horses at the Sorrano Creek stables. And when there's fires up in the canyon, which we are right in backing up to Cleveland National Forest and the Whiting Wilderness Ranch, that it is a a place where horses can be evacuated from and he takes them in and doesn't charge them a thing. So, um I think that um Matt, we thank you. The community thanks you. I know the little girls and young men that flipping have um gone through your horseback training there have become better people because of the horses they ride. So thank you Matt for doing that. And if you need great fertilizer, he sells it by the bag.

Okay, so we have a motion. Do I get a do I have a second? Okay, we have a motion in a second. Let's vote. Thank you, Adrian. And that motion passes unanimously. Okay. Thank you. We'll move on to item number seven. Madam city clerk, please read the title of item number seven. The title of item number seven is the first amendment to the amended and restated affordable housing loan agreement with the National Community Renaissance of California for the Aspen Court affordable housing project. Thank you. Madam City Manager, can you please introduce this item?

Thank you, Mayor. Um, for this item, we will have our economic development and housing manager, Adrien Ghalava, give you an overview of this proposed amended agreement. Good evening, mayor, members of the city council. The item before you for consideration is a first amendment to the amended and restated affordable housing loan agreement with National Core. National CPS submitted its draft site plan a couple months ago. The site plan lists out the unit count, parking stalls, and community amenities for the project. It includes 20 one-bedroom units, 16 two-bedroom units, 14 three-bedroom units, 69 parking stalls, as well as a dedicated office for police services. In September of 2023, the city and housing authority issued a notice of funding availability to develop an affordable housing project. In March of 2024, the city and authority entered into an exclusive negotiating agreement with National Core. The ENA allowed National Corps to begin looking for a viable project site. Then in March of 2025, the city and authority approved an affordable housing loan agreement. The agreement established the legal terms and conditions governing a $4.35 million loan for the project. And then most recently in November of 2025, the city and authority approved an amended and restated affordable housing loan agreement which modified the city loan to an acquisition loan and was altered so national core could acquire the property and close escrow in January. National Corps was unable to close escrow on the property due to delays and uncertainties with acquiring other project related financing and they've since requested an amendment to the agreement. The proposed first amendment would

adjust the transaction structure so escrow could close on the property. The modifications are intended to position the project to successfully compete for tax credit financing. And here's what the ownership transfer would look like under the First Amendment. The building on the project site is currently being used for office. Upon the close of escrow, National Corps would assign its interest to NCRCAC Holdings LLC. It would own the building and continue to operate it as an office park until tax credit financing is secured. Once the tax credits and other financing sources are awarded, the interim owner would then transfer and assign its interest in the property to NCRC Aspen Court LP, a limited partnership formed specifically for tax credit financing and development of the project. Projects seeking to utilize lowincome housing tax credit financing must be owned by a limited partnership that admits a tax credit investor. Since tax credit awards occur on a competitive schedule, it is unknown when National Core would be able to secure this funding source. Therefore, the ownership structure must be flexible and change depending on the current state of funding.

[clears throat]

The city's investment would continue to be secured by the deed of trust and regulatory agreement. In addition, a recorded covenant would also restrict the interim owner's use of the property and would prevent them from selling or transferring without approval from the city. Construction must begin by March of 2028 unless extended by the city. And lastly, failure to meet required milestones listed in the agreement would constitute a default and there and then the money would be owed back. At this time, staff recommends the city council and housing authority board approve a resolution entitled a joint resolution of the city council of the city of Lake Forest, California, and the housing authority of the city of Lake Forest, California, approving an amendment to the amended and restated affordable housing loan agreement between the city of Lake Forest, Lake Forest Housing Authority, and National Community Renaissance. That concludes my presentation. Alexa Washburn with National Corps is here in the audience and we are available to answer any questions you may have. Thank you.

Okay, before we do that, uh, madam city clerk, are there any request to speak on this?

We do have two public commenters and our first public com commenter is Andrea Alexander. Hi again. I just want to say I'm all for this. Um, I remember when um when the metal project was in jeopardy because of the maintenance issue and the city came up with a um a funding plan and we were going to provide a lowcost loan and the property as collateral and you kept that project alive and it's it's occupied now and it's going and I love that we're making this we're allowing we're we're flexible enough to change the the verbiage so that that we can keep this project alive and going. And I just want to thank you for that. We're going from instead of using the money to to build the building, we're using the money to buy the property. And that's the starting point. We need that. So, thank you.

Thank you for your comments.

And our last public commenter on this item is Andrew O' Conor. [clears throat] Correct me if I'm wrong, mayor, but I think you said in January that this project was shovel ready. Remember that it's shovel ready. Aspen Plaza shovel ready. Well, right now it ain't going to start till March 28th, 2028. Long time off. So, are we facing a lawsuit, city manager, from the landlord because I'm sure he told he he's not renting any of that space out because the mayor says it's shovel ready. So, he wasn't bringing any income in because he thought, you know, it's shovel ready. It's going to be leveled. So, between now and then, he's losing income because he thought the building's being knocked down. Are we facing any litigation because of this? Yes or no? I'll see you come up sooner or later. I'm sure he's going to sue us. Someone's got to pay this guy. He can't let his building sit empty because you gave him false pretense. It was shovel ready. So, of course, he wasn't rent any space over there. He's losing revenue. So, he's supposed to sit on this thing for a whole another year and lose money. Is there anything in the contract, Mr. City T, that we have to pay him for that? Bet. Bet you there is. But here's the other thing. I'm against the this Aspen Plaza location. Why? Because we're facing lawsuits. We're going to face lawsuits because of the Los Alisos Reclamation Plant next door. The smell that comes out of that place. You're going to get a resident come in there, find a lawyer. Maybe the lawyer finds resident first. I don't know who, but they're going to sue us because he has headaches and nausea and he's sick to his stomach. Why? because of the air quality coming out of that

plant. You don't put a residential unit next to a reclamation plant. You think I'm exaggerating? Go out there yourself any time of the day, morning, noon, weekend, stand in the parking lot and smell the air. Mr. Tatimer, he's an ex employee there. He should know. I took three different people to that parking lot after lunch, during lunch, something like that. I got said, "What are we doing?" And I said, "Just get out." Okay. We get out and they're looking around. He says, "You know, the first thing they said, "What's that bad smell?" I said, "Yep." Casey's closed. Yeah. Can you believe they're going to put apartments here? He goes, "No way." I go, "Yeah, our city government thinks this is a good location for uh apartments for people to live." says, "Man, it's going to stink like hell." Three people got in the car and said, "That's it." So, I'm just telling you, you think this is a good place. City attorney's happy because he'll make money. But how you going to offend when they show the pictures of a reclamation plant next door with everyone's toilet water going through it and bad air quality? But go ahead, build it. I warn you right now. Thank you for your comments.

A motion to approve. You have any question? Okay. Thank you, mayor. Um, just to clarify, there was a graphic that showed the flowchart of what I believe is ownership. It starts with the current owner and it goes to an interim owner and it says NCRC. I presume that's national core is going to be the interim owner and they're the ones that are going to operate the building for as long as necessary. Correct. That is correct. So there isn't some other third person third party national corps is taking possession with the sole interest of operating it in its current condition until such time as they are able to secure the funding to move the project forward to the affordable housing.

That is correct. Just want to clarify. Thank you. Um, Adrian, I I want to commend um National Corps to come to us and and make this request because the fact is the flexibility that we're showing here is actually keeping this project alive. And so, um, I'm proud to make a second to this project. And so, thank you. Thank you, National Core, for the project you've already done at that location.

All right. Before we did that, Alexa, you're not going to get away without coming up to the mic. So my question to you Alexa is once we do this for you and you put in for these tax credits, we should know by August because the next one is I think June or July where the and then by August you'll know if you get them once you you get this because this is going to move the needle in the direction that you need it to. When will you start uh construction?

Good question, honorable mayor and council members. Alexa Washburn, chief development officer with National Core. Uh to ask uh answer your question about timing, the earliest that we would close construction financing and begin construction would be the end of this year. So this year, correct? So we're applying for tax credits in early April. If we are awarded a tax credit allocation, that would be in June. And then you have six months, 180 days to close financing, pull permits, and begin construction. So that puts us right at the end of the year. Well, thank you. And just uh to clarify, I never said shovel ready.

So uh thank you, Alexa. And we got a motion in a second. Let's go ahead and vote. Thank you, Alexa. Thank you, council members. And that motion passes unanimously. Thank you. And Alexa, I'm look forward to you breaking ground in this year. So, um, madame city clerk, please read the title of item number eight. Title of n of item number eight is the fiscal year 202526 midyear budget review. Madam City Manager, please introduce this item.

Thank you, Mayor. Tonight, we have our assistant director of finance, Amy Lewis, who will review our midyear budget.

All right. Good evening, mayor and members of city council. Tonight, I will provide a mid-year update for fiscal year 25 to 26. This presentation includes recommended updates to the general fund revenue estimates, a proposed adjustment to general fund cost estimates, revenue and expenditure updates and several other funds, and capital improvement plan updates, including two new project recommendations. I'll begin with general fund revenues. At Midyear, we are recommending several adjustments to better align estimates with current activity and performance trends. Increases include investment earnings reflecting continued strong portfolio performances, property taxes, our largest revenue source, which are trending slightly higher than the original projection. Other revenues, including reimbursements in auction proceeds, intergovernmental revenues, which reflect revenue received from the state of California, and facility rentals at our sports park. Decreases include franchise fees, charges for services, and license and permits, which reflect current development activity levels. Overall, these adjustments result in a net increase of $115,000, $600. The current general fund revenue estimate of 69.4 million would be updated to approximately 69.5 million, representing a very modest overall change of 0.2%. On the expenditure side, we are recommending one adjustment. We are proposing a $60,000 increase in infrastructure maintenance services to fund necessary HVAC upgrades to the city hall server room. This improvement is operationally important to ensure continued reliability of our IT servers. With this adjustment, total general fund expenditures would increase the current 66.6 million by that $60,000. In summary, the proposed mid-year adjustments result in a modest net increase to revenues and a one-time expenditure adjustment. The general fund remains balanced. Now, turning to other funds. In addition

to the general fund, we're recommending several mid-year adjustments and seven other funds. On the revenue side, gas tax estimates have been updated and revised projections from the state of California. We have also adjusted several develop developer funded funds to reflect current development activity and project timing. On the expenditure side, measure M2 senior mobility has been increased to reflect a contract adjustment. The permanent local housing allocation program has been updated to align with ava available grant funding and the foothill circulation phasing plan reflects an updated cost assessment based on current program needs. And now we'll be going to the capital improvement plan where there are three projects to discuss. The first is the Aliso Creek drainage repairs. This is an existing project currently underway. We are recommended recommending an increase in funding to accommodate required environmental review and sequid documentation cost identified during preliminary engineering. The project stabilizes the exposed storm drain and helps prevent more significant erosion and repair costs in the future. The next project is a new project Austrian solar street light project. This project installs additional solar lighting along the pathway to and from Regency Park. The improvements address identified safety concerns, improve visibility for pedestrians, and help deter crime. The goal is to enhance public safety and ensure a safe path for travelers to and from the park. And the final project is the Foothill Ranch Park Slope landscape improvements. This project removes acacia vegetation along the slope adjacent to two homes and replaces it with drought tolerant landscaping and efficient irrigation. Advancing this project now allows us to complete this slope clearing before fire season and it strengthen the existing fire break to reduce wildfire risks to nearby homes. So before you tonight, there is a resolution amending the adopted 2025 to 2027 operating and capital improvement plan and amending the appropriations for fiscal year 2526. And I am here to answer any questions

you may have. Okay. Before we do that, madam city clerk, are there any requests to speak on this item?

We do have one public commenter and that is Andrew O' Conor. So, um, Till's had a popup warehouse over here in this business park for quite a few months, and I reached out to Kevin. I said, "Are we going to be able to capture that sales tax sack?" He goes, "Yeah, there's there's a method to to do it." And I followed up with him again and Kevin never answered back to me. So I'm wondering the tillies pop up. They did a lot of money over there. That sales tax should be staying here in like forest because that's what the law says. And I'd like to know did we ever get that tax revenue for that popup event? Do you even know what I'm talking about? There you have it.

Thank you for your comments.

I I'll move this um staff report midyear budget review. Obviously, it's a great report once again balanced with the surplus and so um staying in the tradition of Lake Forest. Thank you for a great report and I'll move the item. We have a motion in a second. Well,

thank you Amy. And there's a reason that uh before you go T, there's a reason that we score a 95 on that uh on the the scale that that grades us. So, and that motion passes unanimously. All right, that takes us to the city manager report. Madam city manager, do you have anything to report? I have nothing additional. Thank you. Okay. To council comments, council member Tedmer. Nothing tonight. Thank you, mayor. Council member Voites. Nothing tonight. Thank you everybody for being here and have a great evening. Council member Yup. Nothing further. Ray Pro Tim.

Thank you, Mayor. Just a couple quick things. I know that Matt has left from the Lake Forest Equestrian Center, but had an opportunity to go and see one of the best kept secrets in Lake Forest after being here for decades myself and not knowing about that. But my wife actually was in 4 years ago and she knew well about it. But it was very impressive the passion and the the equipment and the personnel that they have there uh for this nice amenity in here. So I'm glad that we were able to get that lease all straightened out for them for another 20 years. Serves our community very well. And then also had an opportunity to take a tour at the Mission Vjo Animal Services as we're looking at some of the things that were mentioned here tonight between that and the Orange County Animal um center there. So just taking a look and seeing all the different things we have before us. council members uh have also done this kind of research and these kind of tours to make sure that we're we're gathering data and information and seeing firsthand these things before we make important decisions uh in our community. And finally, just a quick shout out for my uh son 34th birthday. Happy birthday, Brandon. Want to tell you about that. And we were reminiscing this weekend about when he was a a little boy and he had his bed he had a water bed and he was saying, "Dad, how come my bed's not that bouncy? Can we make it somehow bouncier?" and my wife and I had a conversation and we figured out, yeah, we could just add spring water. Thank you.

All right. Never disappoints. So, um, I had the opportunity to, uh, tour do the open house tour at Applied Medical. Very amazing place, one of the cleanest places on the planet. And I did a ribbon cutting at Amazing Kids. And um it brought back some memories of when I was take when I would take when Angela and I mostly Angela would take Jimmy to u a place to help him with his with his brain injury. And I also went to the Mission VJO animal shelter and did a tour. I uh also called the first pitch on the Lake Forest Little League opening day and I had the extreme pleasure of going to an IFAR dinner uh two week about a week and a half ago and I was thoroughly amazed on on what they do that uh I was I was happy and I actually said a prayer. Um I also had a breakfast over at Forest Gardens. They were happy and uh Embrace Relief and Pacifica Institute. I helped them uh pass out blankets at uh Forest Gardens and at El Toro Mobile Home Estates and uh they they gave out blankets and bags. And by the way, I'll take being number one no matter what finger they use. And with that, I'll adjourn.