City Council - Regular Meeting

CALL TO ORDER – #3090

ROLL CALL - City Clerk

PUBLIC INPUT

Members of the public may provide comments in writing, in person or in real time via Zoom to address the City Council on items on the Closed Session Agenda.

CLOSED SESSION UPDATE - City Attorney David E. Kendig

Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2), (e)(2), (e)(3), (e)(5): (5 cases)

Initiation of litigation pursuant to Government Code § 54956.9(d)(4): (1 case)

Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): (1 case) – related to the fire at the North Hangar owned by the Navy and the release of hazardous materials therefrom

[Government Code § 54956.8] (2 cases)

A. Property Address/Description: 150 E. First St. Agency: City of Tustin City Negotiators: Aldo E. Schindler, City Manager; Nicole Bernard, Assistant City Manager; Brian Moncrief, Deputy City Manager/Real Property Negotiating Parties: CAZ LLC Under Negotiation: Price and Terms of Payment B. Property Address/Description: APN 430-251-23 Agency: City of Tustin City Negotiators: Aldo E. Schindler, City Manager; Nicole Bernard, Assistant City Manager; Brian Moncrief, Deputy City Manager/Real Property; Ryan Swiontek, Deputy Director/Real Property Negotiating Parties: Lincoln Property Company and Pacific Industrial Under Negotiation: Price and Terms of Payment

[Government Code § 54957(a)] (1 case)

Consultation with Tustin Police Department, Chief of Police

CALL TO ORDER – #3090

INVOCATION – Major Ken Perine, Salvation Army Tustin Ranch Corps

PLEDGE OF ALLEGIANCE – Council Member Nielsen

PUBLIC INPUT

At this time, any member of the public may address the Council on matters which are not on this evening's agenda, provided the matter is within the subject matter jurisdiction of the City Council.

CLOSED SESSION REPORT – City Attorney David E. Kendig

PRESENTATION – Parks and Recreation Department 2026 Branding

WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE AGENDA

Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

APPROVAL OF MINUTES - THE SPECIAL CLOSED SESSION MEETING AND THE REGULAR MEETING OF THE CITY COUNCIL HELD ON DECEMBER 2, 2025.

Recommendation: That the City Council approve the Action Minutes of the City Council Special Closed Session Meeting and Regular Meeting held on December 2, 2025.

RATIFICATION OF PAYROLL AND DEMANDS

The City Council has approved the use of Government Code Section 37208 to expedite the payment of City of Tustin obligations that are in accordance with the approved budget or continued operations authorizations. Recommendation: It is recommended that the City Council approve Payroll in the amount of $1,162,054.04 and Demands in the amount of $7,504,776.18.

SECOND READING AND ADOPTION OF ORDINANCE NO. 1573 - THE DEVELOPMENT OF 145 RESIDENTIAL UNITS AT THE SOUTHEAST CORNER OF 17TH STREET AND PROSPECT AVENUE (CYPRESS GROVE PROJECT)

Adoption of Ordinance No. 1573 approves Zone Change 2025-0001 to rezone the Cypress Grove project site from Planned Community Business Park to Planned Community Residential and adopt a new development plan to establish permitted residential uses and development standards for the construction of 145 residential condominiums on approximately 8.5 acres. Recommendation: That the City Council have second reading by title only and adoption of Ordinance No. 1573. ORDINANCE NO. 1573 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING ZONE CHANGE 2025-0001 TO AMEND THE CITY'S ZONING MAP TO APPLY THE PLANNED COMMUNITY RESIDENTIAL ZONING DESIGNATION TO AN 8.5-ACRE SITE (ASSESSOR PARCEL NUMBERS (APNS) 401-401-12, -13, -14, -15, -16, AND -17) TO ACCOMMODATE THE CONSTRUCTION OF A 145-UNIT RESIDENTIAL CONDOMINIUM PROJECT Fiscal Impact: There is no fiscal impact associated with this item however, the applicant has provided a Fiscal Impact Analysis that considered ongoing general fund revenues to the City from property tax and sales tax, showing an estimated net positive benefit of about $191,000 in the first year.

ADOPTION OF THE 2026 INVESTMENT POLICY

The City's Investment Policy is reviewed on an annual basis for submission and approval by the City Council. On November 25, 2025, the Audit Commission reviewed the proposed 2026 Investment Policy, in which staff recommend a minor change to extend the maximum maturity of allowable commercial paper investments from 270 days to 397 days, as allowed under Senate Bill 595. The Commission found the policy to contain relevant provisions from the California Government Code, and the one proposed change will add flexibility to invest idle cash while maintaining safety and liquidity of assets. Therefore, the Audit Commission recommends that the City Council adopt the 2026 Investment Policy with the proposed change. Recommendation: It is recommended that the City Council adopt the City's 2026 Investment Policy with one change related to the maximum maturity of allowable commercial paper investments. Adoption of the Investment Policy also delegates to the City Treasurer for a period of one year the authority to invest the funds of the City in accordance with the Investment Policy. Fiscal Impact: Consistent with State Law, the City's primary investment objective is to invest in a manner aimed to safeguard principal and maintain liquidity where the secondary objective is to achieve a market rate of return. The 2026 Investment Policy continues to provide for safety and liquidity of public funds while earning a reasonable rate of return.

FISCAL YEAR 2024-2025 DEVELOPMENT IMPACT FEE REPORT

The attached report is prepared to comply with California Government Code Section 66006, which requires an annual disclosure and review of collected development impact fees and expenditures within 180 days after the last day of the fiscal year. Recommendation: It is recommended that the City Council receive and file this report. Fiscal Impact: There is no direct impact associated with this item.

RESOLUTION DETERMINING THE NEED TO CONTINUE THE PROCLAIMED LOCAL EMERGENCY RELATED TO THE NAVY NORTH HANGAR

At its meeting on November 10, 2023, the City Council ratified the Acting City Manager's Proclamation of Local Emergency related to the fire at the Navy's North Hangar and release of chemicals of public health concern, including asbestos. At a special meeting of the City Council on January 9, 2024, and at its regular meetings on March 5, 2024, April 16, 2024, June 4, 2024, June 18, 2024, July 16, 2024, August 20, 2024, October 15, 2024, December 3, 2024, January 21, 2025, March 18, 2025, May 6, 2025, June 17, 2025, August 5, 2025, September 16, 2025, and November 4, 2025, the City Council reviewed and determined the need to continue the local emergency. This item recommends that the City Council once again review and determine that the need exists to continue the local emergency, as required by State law. Recommendation: It is recommended that the City Council adopt Resolution 25-75 determining the need exists to continue the local emergency related to the fire and release of chemicals of public health concern from the Navy's North Hangar, in the form attached hereto as Attachment 2. RESOLUTION 25-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DETERMINING THE NEED TO CONTINUE LOCAL EMERGENCY RELATED TO FIRE AND RELEASE OF HAZARDOUS MATERIALS FROM NAVY NORTH HANGAR. Fiscal Impact: There is no direct impact from a determination that a local emergency continues to exist.

2026 MAYORAL APPOINTMENTS TO COMMITTEES AND CITY COUNCIL AD HOCS

Annually the Mayor appoints those members of the City Council who will serve on various City and Regional committees and Mayor-appointed Ad Hocs. Recommendation: 1. Approve the attached committees and appointments as appointed by the Mayor; and 2. Adopt FPPC Form 806: Agency Report of Public Official Appointments and direct staff to post on the City's website.

HOUSING SUCCESSOR ANNUAL REPORT FOR FISCAL YEAR 2024-2025

In accordance with Health & Safety Code Section 34176.1(f), the Tustin Housing Authority, as the Housing Successor to the former Tustin Community Redevelopment Agency, has prepared an annual report for filing with the Tustin Housing Authority and the Tustin City Council. Recommendation: The Tustin Housing Authority Commissioners take the following actions: 1. Receive and file the Housing Successor Annual Report for Fiscal Year 2024-2025 and transmit such report to the Tustin City Council. The City Council take the following actions: 1. Receive and file the Housing Successor's Annual Report for Fiscal Year 2024-2025. 2. Direct a copy of the Housing Successor Annual Report be posted on the City of Tustin's website at www.tustinca.org. Fiscal Impact: There is no fiscal impact associated with this item.

DECLARATION OF SURPLUS COMPUTER EQUIPMENT

The City has accumulated a collection of obsolete and/or damaged equipment, including but not limited to desktop and laptop computers, access points, servers, network equipment, camera equipment, printers, scanners, tablets, and phone devices that are no longer functional or needed for public use. Recommendation: 1. Declare the listed computer equipment as surplus and not required for public use; and 2. Authorize staff to dispose of the equipment.

2026 LOCAL APPOINTMENTS LIST

Prior to December 31st of each year, the Maddy Act requires municipal agencies to prepare and post a listing of all Commission/Board vacancies for the upcoming year. Recommendation: Approve the 2026 Local Appointments List for the Planning Commission, Community Services Commission, Audit Commission, Building Board of Appeals and Public Art Commission and post notice as required by law. Fiscal Impact: There is no fiscal impact associated with this item.

AUTHORIZING THE TEMPORARY POST-RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ

Adoption of the attached Resolution will authorize the City to employ Robert Hernandez as a retired annuitant in the classification of Water Meter Reader sooner than 180 days after his upcoming retirement, pursuant to Government Code sections 7522.56 and 21224. Recommendation: Adopt Resolution No. 25-76 authorizing the City to employ Robert Hernandez as a retired annuitant to fill the critically needed extra help assignment of training the next employee hired into the classification of Water Meter Reader. RESOLUTION NO. 25-76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE POST-RETIREMENT EMPLOYMENT OF ROBERT HERNANDEZ SOONER THAN 180 DAYS AFTER RETIREMENT Fiscal Impact: Authorization of this appointment will result in an estimated cost of $14,000 over the next few months. Staff is not requesting any supplemental budget appropriations associated with this action at this time; any supplemental appropriations will be incorporated with the mid-year budget review, which will be presented to the City Council in February 2026.