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Home My WebLink About2011-07-29Minutes City Council/Redevelopment Agency Meeting City of Huntington Beach Friday, July 29, 2011 8:00 AM - Room C and D Central Library 7111 Talbert Avenue Huntington Beach, California 92648 8:00 AM - ROOM C and D, Central Library CALL TO ORDER Mayor Pro Tern Hansen convened the City Council/Redevelopment Agency special meeting at 8:00 a.m. ROLL CALL Present: Shaw, Harper, Hansen, Carchio (arrived at 8:18 a.m.), Bohr, Dwyer and Boardman Absent: None ANNOUNCEMENT OF LATE COMMUNICATION — None PUBLIC COMMENTS (3 Minute Time Limit) — None (City Council) — Meeting to review and update the Strategic Goals of the City Council. Facilitator Marilyn Snider, of Snider and Associates introduced herself and Graphic Recorder Michelle Snider Luna of Snider Education & Communication. Facilitator Snider requested self - introductions of the Department Heads and Council present at the meeting. Facilitator Snider took the group through a review of the City of Huntington Beach Mission/Purpose Statement, Core Values and Three -Year Goals (2009-12). Mission Statement: The City of Huntington Beach provides sustainable quality services to maintain and enhance our safe and vibrant community. Core Values Listing — The City of Huntington Beach Values: • Responsiveness • Accountability • Quality customer service • Honesty and Integrity • Teamwork • Fiscal sustainability • Community involvement • Openness Council/Redevelopment Agency Minutes July 29, 2011 Page 2 of 12 Three -Year Goals for 2009-2012, not in priority order: • Maintain our financial reserves • Maintain, improve and obtain funding for infrastructure and equipment • Maintain public safety • Enhance economic development • . Improve internal and external communication A review of the City accomplishments since the previous Strategic Planning session of January 28, 2011 was conducted, along with a current SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. Below are the results of the brainstorming activity: Accomplishments of the City of Huntington Beach Since the January 29, 2011 Strategic Planning Retreat (brainstormed list of perceptions): • Over 5000 people in the Summer Reading Program • Coastal Commission approval of the Downtown Specific Plan • Incident -free 4th of July • Maintained 99% customer satisfaction for emergency response • Received a clean audit opinion on our Comprehensive Annual Financial report (CAPR) • Provided 25 first time home buyers with the ability to buy a home • Launched ebook collection at the library with the support of Friends of the Library • Completed eight miles of arterial pavement rehab and 26 residential streets • Our employees, for the fourth year in a row, gave of themselves and were top fundraisers for a local charity • Providing funding for a new ten -unit affordable housing project • Submitted six projects to Orange County Transit Authority (OCTA) and awarded $700,000 in projects • Received a $50,000 grant to enhance DUI enforcement • Finished the first phase of clean up at Ascon toxic waste site • Broke ground on Costco • Developed a Public Works Work Order Management System • Implemented citywide fleet maintenance consolidation • Negotiated two new cell tower agreements (one for $123,000 in additional fees and one for $54,000 annually) • Completed 4th Annual HB Reads Program • Completed utility yard rehabilitation • Installed three self-service check out stations at the library • Implemented iPads for paperless agenda process • Got rid of bottled water at the dais • Completed the 8th ball field at the sports complex • New community garden • Re -codified the new charter with the Secretary of State • Successfully transitioned 193 acres of landscape from in-house to contract services • Obtained corporate sponsorship for two lifeguard towers • Contracted to provide outsourced helicopter services to other cities • Developed an online paycheck system for employees • Balanced the FY 2011 budget • Received and managed several federal, state and private grants • Added a new free shuttle service from City Hall to downtown to ease parking issues during Council/Redevelopment Agency Minutes July 29, 2011 Page 3 of 12 the summer (Tuesday night downtown closure) • We implemented our Hometown Hero Program • Implemented a Fire Department Awards Program • Honored ten -time surfing champion Kelly Slater • Created a new Local Vendor Preference Program • Providing summer valet services in downtown parking structure • Received a clean audit option from the federal single audit • Constructed a junior lifeguard storage facility built with private funds • Celebrated the Annual Festival of Folktales at the library • Completed the 2011 CERT (Community Emergency Response Team) with 122 graduates • Approved the formation of a housing authority • Implemented our branding of Huntington Beach • Maintained our financial reserves (approximately $43 million total) despite severe financial challenges • Implemented an Intranet portal in the Fire Department to improve internal communication • Opened discussion with several developers regarding our Beach and Edinger corridor • Received a Certificate of Excellence for Financial Reporting from the Government Finance Officers Association • Rehabbed Emerald Cove and solid it to their management company • Installed solar panels • Hosted 100,000 people or more for July 4th parade and fireworks • July 4th parade shown on TV • Developed and implemented a ten point plan to improve customer service for the business community and to be more business friendly • Facilitated a citywide EOC (Emergency Operations Center) table top exercise • Implemented a Volunteer Scheduling System for the library • Enrolled 2800 individuals in our summer Learn to Swim Program • Issued over 6300 building permits (6% over this time last year) • Opened the El Mercado Farmers Market serving the Oak View community • Implemented WiFi services at all branches • Increased Internet speed at all libraries by over 300% • Successfully consolidated reprographic, mail processing and copier maintenance services, saving the City over $100,000 annually • Working with the Public Works Commission, prioritized infrastructure needs and provided them to Council • City is in the process of selling off surplus properties • Building permit construction valuation up 8% ($70.5 million) over same time last year • Received Award of Merit and Outstanding Planning Award from the California and Orange County Chapters of the American Planning Association for the City's Beach -Edinger Corridors Specific Plan • Celebrated the 25th Annual Authors Festival Current Internal Weaknesses/Challenges of the City of Huntington Beach (brainstormed list of perceptions): • Loss of institutional memory and knowledge • Inadequate staff to perform critical functions • Lack of funding for non -mandated training • Inability to successfully negotiate labor concessions Council/Redevelopment Agency Minutes July 29, 2011 Page 4 of 12 • Fear of further layoffs due to fiscal challenges • Lack of funding to replace computer hardware • Lack of funding for employee enrichment • Aging and antiquated business processing system • Lack of funding to maintain and enhance quality services • Increasing expectations of remaining staff • Competing priorities • Unable to get a handle on our RDA during difficult times • Split Council • Low employee morale • Lack of consensus on two-tier pension system • No Community Services Director • Lack of communication and understanding with bargaining associations • Difficult transition from Public Agency Retirement Systems reductions • Lack of funds • Lack of job security • Inability to bring a solution to downtown problems • Unable to get a handle on funds for our aging infrastructure • Unwillingness to look at revenue enhancements External Factors/Trends that Will/Might have a Positive Impact on the City of Huntington Beach in the Coming Year (brainstormed list of perceptions): • Measure M2 grant opportunities • Continuing E-rate grants funding for electronic services • Beginning to see investments by the development companies for the first time in two and a half years • Success of existing events that come to the city • More public involvement • Increasing sales tax revenue • Additional public -private sponsorships • Environmental grant to restore Bolsa Chica • Potential grant for Talbert Lake Project • Changing technological landscape • RDA lawsuit • Sharing services with neighboring cities • Improvement in visitor stream • Increased hotel occupancy • Interest in new events • Some projects starting in the Beach and Edinger corridor and in downtown • Increased events in the off season • Increased property tax values • Costco under construction • Development of the boardwalk • Prop 22 • Increased opportunities for energy efficiency and green projects • Enhanced collaboration among cities (e.g., Association of California Cities for Orange County) Council/Redevelopment Agency Minutes July 29, 2011 Page 5 of 12 • Better than expected investment returns at CalPERS External Factors/Trends that Will/Might have a Negative Impact on the City of Huntington Beach in the Coming Year (brainstormed list of perceptions): • Lack of adult supervision at the state level • RDA going away • Unrealistic investment returns for PERS • Federal budget cuts • Decreasing federal and state grants • Increased regulation • Lack of commercial funding • Increasing demand for services • Increasing workers comp costs • Increasing fuel costs • 24-hour news cycle and the need for an immediate story • Changing technological landscape —possible increasing costs • Increasing senior population • Anger of public against public employees and elected officials • Expectation of immediate response to the public • Redistricting • High health care costs • Ensuing election • Uninformed or misinformed electorate • Lack of confidence in the community • PERS • Debt ceiling stagnation —unable to come to a decision • Further state raid of local fund • Continued increase in lawsuits against the City PRESENTATION BY THE FINANCE DIRECTOR — a presentation regarding the options to address the $1,684,000 Budget Shortfall in FY 2011-2012 (Options Estimated Value 1. Refinance Bonds $1,000,000 2. Reduce Staff/Operations by 50%* $650,000 3. Grant from IVIVB $70,000 4. Partial Deferral of Developer Tax Sharing Agreements** $500,000 5. Short-term Inter -fund Loan TBD 6. Other Revenue*** TBD *Assumes total reduction of 6 FTEs **Up to $2 million available ***As previously presented to City Council (4/18)—up to $300,000 Council/Redevelopment Agency Minutes July 29, 2011 Page 6 of 12 CONSENSUS BY THE CITY COUNCIL ON OPTIONS FOR THE MANAGEMENT TEAM TO EXAMINE FURTHER AND REPORT THE RESULTS, INCLUDING RECOMMENDATIONS, TO THE CITY COUNCIL FOR ACTION Come back to the City Council with more information and recommendations. Remove Option #5 from consideration. There is the least amount of interest in Options #2 and #4. 1. In September 2011, the Finance Director will implement refinancing of bonds. 2. No later than the September 6, 2011 City Council meeting, the Director of Finance and City Manager will recommend to the City Council for action whether or not to implement the redevelopment funding options number 2, 3, 4 and 6. PRESENATION BY THE PUBLIC WORKS DIRECTOR — a presentation was given on infrastructure funding and implementation options. FUNDING OPTIONS • Tax o 2/3 voter approval (1 person, 1 vote) o No nexus or specific benefit analysis legally required o "Flat" tax or "Proportional' tax can be proposed o Tax collected for duration of Program Benefit Assessment District o Majority property owner approval by mail in ballot (based on proposed amount assessed) o Requires cost of improvements be apportioned to parcels that receive benefit IMPLEMENTATION OPTIONS Pay As You Go o Collect Tax or Assessment 1 st year and build the next year Bond o Allows for earlier implementation of improvement o Allows pay back over longer period to reduce annual assessment o However; increases overall cost of program (Due to required benefit analysis, upfront finance charges and debt service) CONSENSUS BY THE CITY COUNCIL REGARDING INFRASTRUCTURE FUNDING OPTIONS 1. By November 15, 2011, the Public Works Director, working with a consultant, will determine the feasibility of an assessment district and make recommendations to the City Council for action. 2. By January 31, 2012, the Public Works Director, working with the Deputy City Manager and consultant, will develop, implement, analyze and distribute results of a public survey regarding funding of the infrastructure. RECESS By consensus, the City Council meeting was recessed for a lunch break at 12:02 p.m. Council/Redevelopment Agency Minutes July 29, 2011 Page 7 of 12 RECONVENE The Meeting was reconvened at 1:00 p.m. with all Council Members present. Facilitator Snider led the group in the identification of the next six -months' strategic objectives, concentrating on how the goals will be addressed — date, accountable individual(s), and specific/measurable results for each. The following is the result of that exercise. Huntington Beach Six -Month Strategic Objectives — July 29, 2011 through February 1, 2012: THREE-YEAR GOAL: MAINTAIN FINANCIAL VIABILITY AND OUR RESERVES WHEN WHO WHAT 1. In September 2011 Finance Director Implement refinancing of bonds. 2. No later than the September Finance Director and City Recommend to the City Council for 6, 2011 City Council meeting Manager action whether or not to implement the redevelopment funding options number 2, 3, 4 and 6. 3. By October 1, 2011 Finance Director and City Finalize recommendations for RDA Manager funding options and present to the City Council for action. 4. By October 1, 2011 Finance Director Present the Long Term Financial Plan update to the City Council for review. 5. By October 1, 2011 City Manager and HR Present to the City Council for Director action how to implement the recommendations regarding the two-tier pension system and employee pick-up of pension costs from consultant John Bartels for future contract negotiations. Council/Redevelopment Agency Minutes July 29, 2011 Page 8 of 12 6. By November 1, 2011 Deputy City Manager and Develop and present to the City Public Works Director Council for action a plan to utilize existing equipment replacement and capital fund balances to replace aging equipment and infrastructure. 7. By January 1, 2012 Deputy City manager and Review existing reserve policies Finance Director and propose possible revisions for City Council review. THREE-YEAR GOAL: MAINTAIN, IMPROVE AND OBTAIN FUNDING FOR INFRASTRUCTURE AND EQUIPMENT WHEN WHO WHAT 1. By November 15, 2011 Public Works Director, Determine feasibility of an working with a consultant assessment district and make recommendations to the City Council for action. 2. By January 15, 2012 Public Works Director Provide an update to the City Council addressing changes in delivery of services and operations as a result of organizational restructuring. 3. By January 15, 2012 Public Works Director Present an evaluation of tiered water rates and provide a recommendation to the City Council for action. 4. By January 31, 2012 Public Works Director, Develop, implement, analyze and working with the Deputy distribute results of a public survey City Manager and regarding funding of the consultant infrastructure. Council/Redevelopment Agency Minutes July 29, 2011 Page 9 of 12 THREE-YEAR GOAL: MAINTAIN PUBLIC SAFETY WHEN WHO WHAT 1. By December 1, 2011, Fire Chief (lead), Marine Finalize and implement transition of contingent upon annexation Safety Chief and Police Public Safety Services. of Sunset Beach Chief 2. By February 1, 2012, Police Chief (lead), Fire Conduct a feasibility study contingent upon City Council Chief and Deputy City regarding providing lifeguard, police approval Manager and fire dispatch, and SWAT services for Newport Beach and Costa Mesa and make a recommendation to the City Council for action. 3. By February 1, 2012 Fire Chief and City Complete discussions with the City Manager of Fountain Valley on opportunities to provide services to them and make recommendations to the City Council for action. 4. By February 1, 2012 Police Chief Conduct an analysis of the Police Department organizational structuring considering current staffing levels and make recommendations for change to the City Council for action. THREE-YEAR GOAL: ENHANCE ECONOMIC DEVELOPMENT WHEN WHO TWHAT 1. By December 31, 2011 Planning and Building Complete the SW corner of Beach Director and Warner EIR and submit to the Planning Commission for action. Council/Redevelopment Agency Minutes July 29, 2011 Page 10 of 12 2. By December 31, 2011 Planning and Building Complete the SE corner of Beach Director and Ellis EIR and submit to the Planning Commission for action. 3. By December 31, 2011 Planning and Building Monitor the sale of the Pacific City Director and Deputy City property and, if sold, work with the Manager new property owner in expediting the development review process. 4. By December 31, 2011 Economic Development Complete the processing of the Director and Planning and Center Avenue Skate Park and Building Director present to the City Council for action. 5. By February 1, 2012 Deputy City Manager Hall Hold three additional workshops (lead), Economic with businesses providing Development Director and information and outreach. City Council Members Shaw, Carchio and Hansen 6. By February 1, 2012 Economic Development Complete the private -public study Director and Deputy City of branding opportunities in the city. Manager Hall THREE-YEAR GOAL: IMPROVE INTERNAL AND EXTERNAL COMMUNICATION WHEN WHO WHAT 1. Weekly Public Information Officer Place on Facebook and Twitter at least two City of Huntington Beach informational postings. 2. The day following each City Public Information Officer Post a summary of City Council Council meeting meeting highlights (e.g., actions by the City Council) to the Surfnet and on a link to all employees. Council/Redevelopment Agency Minutes July 29, 2011 Page 11 of 12 3. By December 31, 2011 Mayor and two City Hold three brown bag lunches with Council members (on a employees to provide updates on rotating basis) City Council priorities and issues. 4. By December 31, 2011 and City Administrator Provide to all employees two March 31, 2012 and Finance Director quarterly updates on the budget situation, in person and with an interactive Q & A session. Facilitator Snider listed Next Steps/Follow-Up Process which had benchmark dates as noted below: NEXT STEPS/FOLLOW-UP PROCESS WHEN WHO WHAT August 1, 2011 City Manager Distribute the retreat record to attendees. Within 48 hours All recipients Read the retreat record. August 9, 2011 Management Team Review the "Internal (City Manager— lead) Weaknesses/Challenges" and "External Threats" lists for possible action items. By August 15, 2011 Department Heads Share and discuss the Strategic Plan with staff. September 6, 2011 City Council Present the updated Strategic City Council meeting (Mayor — lead) Plan to the public. Monthly City Council Monitor progress on the goals and City Manager objectives and revise objectives (Mayor — lead) (add, amend and/or delete), as needed. Monthly City Manager Prepare and distribute the updated Strategic Plan Monitoring Matrix January 27, 2012 Mayor City Council City Manager Management Team Council/Redevelopment Agency Minutes July 29, 2011 Page 12 of 12 Strategic Planning Retreat to: - more thoroughly assess progress on the Goals and Strategic Objectives - identify new Three Year Goals Strategic Objectives for the first six months of the new Strategic Plan. The date of the next strategic plan retreat was set for Friday, January 27, 2012, 8:30 a.m. — 4:00 p.m. at which time the members will assess progress on the goals and strategic objectives, develop a vision statement for the City and strategic objectives for the next 6 months. ADJOURNMENT Council/Agency adjourned at 2:48 p.m. to the next regularly scheduled meeting of Monday, August 1, 2011 at 4:00 PM in the Council Chambers, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: 4&M) ' 0)/-140W) City Itlerk and ex-officio ClerVof the City Council of the City of Huntington Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California City Clerk -CI r- air