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HomeMy WebLinkAbout2017-06-19Minutes City Council/Public Financing Authority City of Huntington Beach Monday, June 19, 2017 4:30 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:30 PM and 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/governmenVagendas! Based on the limited amount of time needed to cover items in Study Session and Closed Session, the meeting was called to order at 4:30 PM 4:30 PM - COUNCIL CHAMBERS CALLED TO ORDER — 4:31 PM ROLL CALL Present: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: For Study Session Item No. 1, a PowerPoint communication entitled City Regulation of Marijuana Distribution, Use, and Sales, and Prop 64 Update. PUBLIC COMMENTS PERTAINING TO STUDY SESSION 1 CLOSED SESSION ITEMS (3 Minute Time Limit) — None STUDY SESSION 1. City Regulation of Marijuana Sales and Distribution and Prop 64 Update from City Attorney and Police Chief City Attorney Michael Gates and Police Chief Robert Handy made a PowerPoint presentation entitled City Regulation of Marijuana Distribution, Use, and Sales, and Prop 64 Update with slides entitled: City's Existing Regulation of Marijuana through Land Use Federal Law, California's Proposition 64, Prop 64 - Personal Use, Under Prop 64, Areas of Possible City Regulation, Impacts of Legalization in Colorado (2), Other Impacts, Under Prop 64, City's Proposed Express Regulation of Distribution, Use, and Sales of Recreational Use Marijuana, and Questions. Mayor Delgleize and Councilmember Hardy discussed with Attorney Gates state certification for dispensaries and zoning within the City and various requirements. Council/PFA Regular Minutes June 19, 2017 Page 2 of 15 Mayor Pro Tern Posey and Attorney Gates discussed dispensary banking services (all cash business) and how taxes would be tracked. Councilmember Semeta and Chief Handy discussed statistics related to the intoxication limit regarding marijuana for a DUI. Mayor Pro Tem Posey, Attorney Gates and Police Chief Handy discussed medical marijuana vs. prescriptions and how dosage levels are determined, recommended and controlled. Councilmember Brenden, Chief Assistant City Attorney Mike Vigliotta and Police Chief Handy discussed upcoming legislation regarding lot control and chain of custody requirements. Councilmember Brenden and Police Chief Handy also discussed regulations for child or tamper -proof packaging for edibles. Councilmember Brenden and City Attorney Gates further discussed current City regulations regarding sales, delivery and cultivation. Councilmember O'Connell and Chief Handy discussed unrealistic sales tax benefits for approved marijuana sales locations when statistics indicate increased expenses resulting from increased crime rates. Councilmember Peterson shared his knowledge of three other cities that are determining municipal regulations related to marijuana use and statistics from presentations at several Southern California Association of Government (SCAG) meetings. City Attorney Gates stated that Proposition 64 allows for the taxing of recreational sales, but does not allow taxing of medical sales. Councilmember Brenden, City Attorney Gates and Chief Handy discussed generally how other area cities are governing medical and recreational sales. Councilmember O'Connell and Chief Handy discussed the percentage of fatal traffic accidents involving drugs and/or alcohol use. Mayor Pro Tern Posey and Chief Handy discussed that marijuana sales (whether medical or recreational) is a growth industry, and police chiefs from other states that have approved sales compare it to big tobacco. Councilmember Peterson stated that according to reports through SCAG, the state of California is the biggest consumer, even before it became legal. Councilmember Semeta and Chief Handy discussed the difficulty of being able to distinguish medical versus recreational cultivation and enforcement. RECESS TO CLOSED SESSION -- 5:05 PM A motion was made by Posey, second Brenden to recess to Closed Session for Item Nos. 2 — 4. With no objections, the motion passed. Mayor Delgleize Announced: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator, City Manager Fred Wilson, who will be participating in today's Closed Session discussions regarding labor negotiations with: Huntington Beach Firefighters' Association (HBFA), Huntington Beach Police Officers' Association (POA), and/or Surf City Lifeguard Employees' Association (SCLEA). Council/PFA Regular Minutes June 19, 2017 Page 3 of 15 CLOSED SESSION 2. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: George and Kathleen Pickett v. City of Huntington Beach/Steven Tilton, Orange County Superior Court Case No. 30-2014-00754342. 3. Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Huntington Beach Firefighters' Association (HBFA), Huntington Beach Police Officers' Association (POA), and/or Surf City Lifeguard Employees' Association (SCLEA). 4. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Michael Johnson vs. City of Huntington Beach, WCAB Case Nos. ADJ9771842; ADJ977184; ADJ9771638; ADJ9771698; & ADJ9771844; Claim Nos. COHB-12-0277; 13-0178; 14-0052; 14-0108; & 14- 0302. 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:10 PM ROLL CALL Present: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None PLEDGE OF ALLEGIANCE -- Led by Councilmember Brenden INVOCATION - Rev. Kelly Frankiewicz of Leisure World Community Church, Seal Beach and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS Mayor Delgleize called on Victoria Alberty who presented the Adoptable Pet of the Month. Karen of Top Dog Barkery introduced 6-month old Jelly Belly who is half Husky and needs lots of running room, but is very social. Ms. Alberty also invited everyone to the Sunday, June 25, Wags and Wine Fundraiser, at Pasea Hotel. Mayor Delgleize presented commendation to Dr. Watt "Doc" for his years of service at Smith Middle School. Doc shared his appreciation for the team he has worked with for the last 28 years at Smith Middle School. During his 40 year career in education he has been able to reach over 1,000 kids and mentor 200 - 300 student teachers. He also thanked the City Council for their support of education. Mayor Delgleize presented commendation to Band Director Thomas Ridley of the Huntington Beach Concert Band for his 40 years of leadership. Linda Couey, General Manager, Huntington Beach Concert Band, highlighted Mr. Ridley's service as Band Director. Mr. Ridley expressed appreciation for the unexpected recognition, and announced that the summer concert series for this year will begin on Sunday, June 25 in Central Park. Council/PFA Regular Minutes June 19, 2017 Page 4 of 15 Mayor Delgleize called on representatives of Mothers Against Drunk Drivers (MADD) who honored members of the Huntington Beach Police Department with the annual Law Enforcement Recognition and Deuce Awards for DUI arrests. Robert Cox, Program Manager for MADD, announced the following award recipients: Law Enforcement Recognition (LER) Award (100 or more DUI arrests) Officer Doug Demetre — 215 arrests Officer Tai Huynh --143 arrests MADD Deuce Award (25 — 99 DUI arrests) Officer Bryn Fedderson — 35 arrests Officer Grant Hasselbach — 34 arrests Officer Stefani Williams — 32 arrests Officer Steven Tennant — 25 arrests Mayor Delgleize called on Community Services Commissioner and Committee Chair Roy Miller who announced the Youth Sports Grants Awardees. The Youth Sports Grant Program is designed to improve facilities for youth sports in Huntington Beach through capital improvement projects. Grants are funded through annual park fees, which totaled $52,000 this year. The 2016/17 awardees are: • AYSO 55, $12,000 for the renovation of a grass area at College View School; • HB Girls Softball, $8,500 for the expansion of safety fencing and moving a practice backstop at Circle View Elementary School; • HB High School Softball Boosters, $1,500 for permanent fencing for the varsity softball field at Huntington Beach High School; • Huntington Valley Little League, $10,000 for installation of a new irrigation system for baseball fields at Wardlow Park; • Ocean View Little League, $10,000 for installation of a new batting cage at Parkview School; and Seaview Little League, $10,000 for installation of a new batting cage at LeBard School and Park. Mayor Delgleize presented a commendation to representatives of Ricos Tacos for their participation in the Sustainable Business Certification Program. Mayor Delgleize called on Community Services Director Janeen Laudenback who presented the Mayor's Award to Facilities, Development & Concessions Manager, David Dominguez. Director Laudenback described Mr. Dominguez as being instrumental, usually behind the scenes, in utilizing his people skills and expertise to work with multiple departments to ensure that projects are completed. Mr. Dominguez has served with the Community Services Department at Oak View Community Center, the City TEAM, the City Gym and Pool, in Park Development and Facilities and Concession Management. Director Laudenback stated that David's work, particularly in the area of Park Development, creates a legacy for generations to come. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: Council/PFA Regular Minutes June 19, 2017 Page 5 of 15 For Consent Calendar Item No. 17, nine (9) email communications received from: Autumn DiGiovanni, Nancy Duremdes, Bill and Elaine Gailing, Jo Ellen Pendergraft, Rob Pool, Cari Swan, Ann Takington, Deanne Thompson, and Linda Wentzel. PUBLIC COMMENTS (3 Minute Time Limit) — 21 Speakers The number(hh:mm:ss] following the speakers` comments indicates their approximate starting time in the archived video located at http://www.sun`city-hb.org/government/agendas. Stephanie Deagle, Chair, American Cancer Society HB Relay for Life, was called to speak and shared details for this year's 24-hour event in Central Park West, on August 12, 10 a.m. to August 13, 10 a.m., with activities for all ages. Details for this event and other fundraisers can be found at relayforlifehb.com. (01:15:05) Carl Swan was called to speak and stated her opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be approved for the site. (01:16:34) Nancy Buchoz was called to speak and stated her opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be approved for the site. (01:19:40) Shawnee Miller was called to speak and stated her opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be permitted for the site. (01:21:13) Tad Buchoz was called to speak and stated his opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be permitted for the site. (01:21:46) Alan Walls was called to speak and stated his support of Consent Calendar Item No. 17, and his opinion that the Environmental Impact Report (EIR) is necessary to determine the independent pros and cons for the Magnolia Tank Farm project. (01:23:12) Natalie Buchoz was called to speak and stated her opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be permitted for the site. (01:25:44) Jo Ellen Pendergraft was called to speak and stated her support for Consent Calendar Item No. 17, and her opinion that the Environmental Impact Report (ElR) is necessary to determine the independent pros and cons for the Magnolia Tank Farm project. (01:27:27) Liz Howell was called to speak and stated her support for Consent Calendar Item No. 17, and her opinion that the Environmental Impact Report (EIR) is necessary to determine the independent pros and cons for the Magnolia Tank Farm project. (01:29:00) Connie Mandic was called to speak and stated her opposition to Councilmember Item No. 19, Zoning Text Amendment to the Holly Seacliff Specific Plan, which in her opinion is by-passing the normal neighbor notification and public comment process for zoning changes. (01:30:00) Dr. Mikel Hogan, Residents for Responsible Desalination, was called to speak and shared her opinions about issues with the Poseidon Desalination project. (01:33:09) Council/PFA Regular Minutes June 19, 2017 Page 6 of 15 Kathy Carrick was called to speak and shared her opinion about the conditions at Murdy Park, and that it might be beneficial to use park improvement funds to address cleanliness and safety issues throughout the City. (01:36:20) Dominc Menaldi was called to speak and stated his opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be permitted for the site. (01:39:23) Amory Hanson, Candidate for City Council in 2018, was called to speak and shared his opinions on ways to address the issues in the Downtown area. (01:41:56) Robert Vale, Citizens Against Tank Farm Development, was called to speak and stated his opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and that high density zoning should not be permitted for the site. (01:44:58) Andrissa Dominquez was called to speak and shared her opinion that, as a resident of the Downtown area, living conditions have deteriorated in the last ten years, and she described a recent personal assault situation. (01:46:22) Deryl Robinson was called to speak and stated his support for Consent Calendar Item No. 17, and his opinion that the Environmental Impact Report (EIR) is necessary to determine the independent pros and cons for the Magnolia Tank Farm project. (01:49:56) Gina Clayton-Tarvin, President, Ocean View School District Board of Trustees, was called to speak and stated her concerns about the General Plan Update and Draft Environmental Impact Report related to industrial intensification near schools, the impact of residential development and environmental justice. (01:50:28) John Briscoe, Elected Trustee, Ocean View School District, was called to speak and stated his personal concerns about environmental justice, industrial intensification, and high density development in the City as stated in the General Plan Update and Draft Environmental Impact Report. (01:53:35) Milt Dardis was called to speak and stated his opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, and his opinion that a majority of neighboring residents are also against this project. (01:56:46) Bobbi Ashurst was called to speak and stated her opposition to Consent Calendar Item No. 17, regarding the Magnolia Tank Farm, for all of the reasons stated by previous speakers in opposition. She also expressed her disappointment that all medical marijuana dispensaries are being closed down in the City, making it more difficult to secure her medical marijuana. (01:59:59) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Hardy reported meeting with members of the Police Officers' Association (POA). Mayor Pro Tern Posey reported meeting with members of the POA and attending County Vector Control Board and Budget and Finance meetings. Out of twenty-one (21) Vector Control traps, none have shown evidence of West Nile virus. Councilmember O'Connell reported meeting with members of the POA as well as with representatives of the Fire Department Union. Council/PFA Regular Minutes June 19, 2017 Page 7 of 15 Councilmember Brenden reported attending meetings of the Homelessness Sub Committee, 4th of July Executive Board, Downtown BID Board, and School District Board, as well as meeting with members of the POA. Mayor Delgleize reported meeting with members of the POA. CITY MANAGER'S REPORT 1. Community Development Department, Building Division Overview provided by Building Manager Mark Carnahan City Manager Fred Wilson introduced Building Manager Mark Carnahan who made a PowerPoint presentation entitled Community Development Department Building Division Overview, with slides entitled We Enforce the State Code, Code Compliance, Plan Check, Plan Check Guidelines, Permits, Inspections, Services Offered, Online Services, and The Best Advice: Please Contact the Building Division Earlier Than Later. CONSENT CALENDAR Councilmember Peterson pulled Consent Calendar Item Nos. 3, 10, 12, and 17 for further discussion. Councilmember Brenden pulled Consent Calendar Item No. 13 for further discussion. 2. Approved and adopted minutes A motion was made by Brenden, second Posey to review and adopt the City Council/Public Financing Authority regular meeting minutes dated June 5, 2017, as written and on file in the office of the City Clerk. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 3. Received and filed the City of Huntington Beach Strategic Plan Grid Updates Councilmember Peterson pulled this item to state his "No" vote because in his opinion the Strategic Plan does not get a proper detailed review by the public. Councilmember O'Connell stated his concurrence with Councilmember Peterson's statement and therefore will also be voting "No". A motion was made by Hardy, second Posey to receive and file the Six -Month Strategic Objectives. The motion carried by the following vote: AYES: Posey, Delgleize, Hardy, and Brenden NOES: O'Connell, Semeta, and Peterson 4. Received and filed City Clerk's Quarterly listing of Contracts filed in the City Clerk's office between January 1, 2017, and March 31, 2017 Council/PFA Regular Minutes June 19, 2017 Page 8 of 15 A motion was made by Brenden, second Posey to receive and file the "List of Contracts Approved by Department Heads and Submitted to the Office of the City Clerk During the Period of January 1, 2017, through March 31, 2017." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 5. Approved reappointments to the Historic Resources Board (HRB) with terms to expire July 2021, as recommended by City Council liaisons to the Board, Councilmembers Hardy and Peterson A motion was made by Brenden, second Posey to approve the reappointment of Kathie Schey, Ronald Knowles, and Duane Wentworth to the Historic Resources Board as recommended by City Council liaisons to the Board, Councilmembers Hardy and Peterson, with terms to expire on July 1, 2021. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 6. Approved appointments and reappointments to the Huntington Beach Youth Board (YB) with terms to expire June 2018, as recommended by the City Council liaisons to the Board, Councilmembers Hardy and Semeta A motion was made by Brenden, second Posey to as recommended by City Councilmember liaisons Hardy and Semeta, approve the appointment of the following students to a one-year term on the Huntington Beach Youth Board with terms to expire June 2018: Tatum Osborne - Marina High School Amy Zeng - Huntington Beach High School Vincent Tseng - Edison High School Savannah Eljaouhari - Ocean View High School Anthony Novelli - Edison High School And as recommended by City Councilmember liaisons Hardy and Semeta, approve the reappointment of the following students to a one-year term on the Huntington Beach Youth Board with terms to expire June 2018: Micayla Shook - Ocean View High School, Representative Devin Hughes - Edison High School, Representative Ella Thomas - Huntington Beach High School, Representative Briana Spainhour - Marina High School, Representative The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None Council/PFA Regular Minutes June 19, 2017 Page 9 of 15 7. Approved the Infrastructure Fund Annual Report for Fiscal Year 2015-2016 A motion was made by Brenden, second Posey to approve the Infrastructure Fund Annual Report for FY 2015-2016. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 8. Received and filed the Commercial Solid Waste Rate Schedule Effective July 1, 2017 A motion was made by Brenden, second Posey to receive and file the rate sheet for Commercial Solid Waste collection and disposal service effective July 1, 2017, which becomes the new Exhibit A of the Revised and Restated Refuse Collection and Disposal Services Franchise Agreement. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 9. Adopted Resolution No. 2017-14 concerning the status and update of the City's Circulation Element, Local Signal Synchronization Plan (LSSP), and Mitigation Fee Program for the Measure M (M2) Program A motion was made by Brenden, second Posey to adopt Resolution No. 2017-14, "A Resolution of the City Council of the City of Huntington Beach Concerning the Status and Update of the Circulation Element, Local Signal Synchronization Plan, and Mitigation Fee Program, for the Measure M (M2) Program." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 10. Adopted Resolution No. 2017-23 authorizing the City to levy the Annual Retirement Property Tax for Fiscal Year 2017118 to pay for pre-1978 Employee Retirement Benefit Levels Councilmember Peterson pulled this item to state his "No" vote because he will not support this tax. A motion was made by Hardy, second Posey to adopt Resolution No. 2017-23, "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2017/18 to Pay for Pre-1978 Public Employee Retirement Benefits of $0.01500 per $100 of assessed valuation." The tax rate of $0.01500 would continue the tax rate included in the current Fiscal Year 2016/17 Adopted Budget. The motion carried by the following vote: AYES: O'Connell, Posey, Delgleize, Hardy, and Brenden NOES: Semeta, and Peterson Council/PFA Regular Minutes June 19, 2017 Page 10 of 15 11. Adopted Resolution No. 2017-24 authorizing certain City Employees and Hinderliter, Del -lamas & Associates (HDL) access to Sales and Use Tax Records A motion was made by Brenden, second Posey to adopt Resolution 2017-24, "A Resolution of the City Council of the City of Huntington Beach Repealing Resolution No. 2014-27 and Authorizing Certain City Employees and Hinderliter, de Llamas & Associates Access to Sales and Use or Transactions and Use Tax Records Pursuant to Section 7056 of the Revenue and Taxation Code." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 12. CONTINUED TO A DATE UNCERTAIN — Adopt Resolution No. 2017-25 establishing its policy for the naming of City Parks, Park Features, and Community Facilities and repealing conflicting resolutions Councilmember Peterson pulled the item to confirm with Director of Community Services Janeen Laudenback the Historic Resources Board's (HRB) level of involvement in the process for historical naming situations. A motion was made by Peterson, second Delgleize to continue to date uncertain request to adopt Resolution No. 2017-25, "A Resolution of the City Council of the City of Huntington Beach establishing its policy for the Naming of City P arks, Part Features and Community Facilities and Repealing Conflicting Resolutions, amended to include language indicating that if a park, or other community facility is to receive a name with historical significance, the Historic Resources Board will be consulted. The amended motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 13. Adopted Resolution No. 2017-28 amending Resolution No. 2016-59 which established a Consolidated Comprehensive Citywide Master Fee and Charges Schedule for parking rate modifications for the 2017 Fourth of July weekend (Supplemental Fee Resolution No. 1) Councilmember Brenden pulled this item to clarify that an Annual Beach Parking Pass can be used during times of temporary increased parking rates. A motion was made by Brenden, second Hardy to adopt Resolution 2017-28, "A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59 Which Established a Consolidated Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 1)," related to temporary parking rates for 4th of July activities at the South Beach lots and Main Promenade Parking Structure. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None Council/PFA Regular Minutes June 19, 2017 Page 11 of 15 14. Approved and authorized execution of Contract Amendment No.1 with Rosenow Spevacek Group, Inc. (RSG) in the amount of $30,000 through June 15, 2018, for Affordable Housing Compliance Monitoring of HOME Projects A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Professional Services Contract between the City of Huntington Beach and Rosenow Spevacek Group, Inc. for Affordable Housing Compliance Monitoring" to June 15, 2018, in the amount not -to -exceed $30,000. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 15. Approved and authorized execution of Amendment #1 to Professional Services Contract with Jensen Hughes, Inc. in the amount of $176,000 for Fire Prevention Inspection and Plan Review Services A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to execute "Amendment No.1 to Professional Services Contract Between the City of Huntington Beach and Jensen Hughes, Inc. for Fire Prevention inspection and Plan Review Services;" the recommended action will also increase the Fire Department's professional services listing authority by a commensurate amount to ensure compliance with Administrative Regulation No. 228. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 16. Approved and authorized execution of Memorandum of Understandings (MOUs) between the City of Huntington Beach and grant partners Peter's Landing Marina and Huntington Harbour Marina for the installation and maintenance of seven Marina Trash Skimmer (MTS) units in Huntington Harbour A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to execute "Memorandum of Understanding Between the City of Huntington Beach and Peter's Landing Marina for the Installation and Maintenance of Marina Trash Skimmer(s) in Huntington Harbour;" and, approve and authorize the Mayor and City Clerk to execute "Memorandum of Understanding Between the City of Huntington Beach and Huntington Harbour Marina for the Installation and Maintenance of Marina Trash Skimmer(s) in Huntington Harbour." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 17. Approved and authorized execution of a 3-year Professional Services Contract with Psomas in the amount of $510,213 for preparation of the Magnolia Tank Farm Environmental Impact Report; approved and authorized execution of a Reimbursement Agreement with SLF - HB Magnolia, LLC (Shopoff) in the amount of $510,213; approved an Council/PFA Regular Minutes June 19, 2017 Page 12 of 15 increase in the Community Development Department's Professional Services listing authority by $510,213; and appropriated funds to be fully reimbursed Councilmember Peterson pulled this item to state his concern about the City fronting the money for the Environmental Impact Report (EIR) for three years. Community Development Director Scott Hess explained the developer's process of making an initial deposit for the Professional Services Contract, and drawing down funds before an additional deposit is made, indicating that the City does not front the funds for the Environmental Impact Report. Councilmember Peterson stated a motion to move the project forward with a revised agreement that directs the developer to pay EIR costs up front. Councilmember O'Connell, City Manager Wilson and Director Hess discussed the process of drawing down funds from the initial deposit. In response to Councilmember Semeta's inquiry, City Attorney Gates confirmed that the terms and conditions of the contract were approved as to form only. Councilmember Semeta and Director Hess discussed how the City is not obligated to complete the EIR if the applicant drops the project mid -stream. Director Hess also explained that the EIR cost includes the developer's preferred plan plus two alternatives, and Councilmember Semeta expressed her interest in having the consultant agreement state that one of the alternatives is for a single-family community. Mayor Pro Tem Posey and Director Hess discussed the rationale for exploring EIR alternatives, a process which provides for full disclosure of potential impacts if changes are approved during the process. Mayor Delgleize and Director Hess discussed that this item is not a commitment to approve or deny the project, but is only an approval to continue the request as part of the process to acquire facts for analysis. A substitute motion was made by Posey, second O'Connell to approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Psomas for the Magnolia Tank Farm Environmental Impact Report" in the amount of $510,213 as prepared by the City Attorney (Attachment No. 1); and, approve and authorize the Mayor and City Clerk to execute a "Reimbursement - Planning - Agreement Between the City of Huntington Beach and SLF - HB Magnolia, LLC for Costs Incurred for the Magnolia Tank Farm Environmental Impact Report" in the amount of $510,213 as prepared by the City Attorney (Attachment No. 2); and, approve an increase in the Community Development Department's professional services listing authority by $510,213 for the preparation of the Magnolia Tank Farm Environmental Impact Report to ensure compliance with Administrative Regulation Number228, Section 7.1; and, appropriate funds as revenues are received in the amount of $510,213 from the General Fund to the Community Development Department Professional Services Account 10060201.69365 for the Professional Services Contract between the City and Psomas, which is funded by a full reimbursement agreement. The substitute motion carried by the following vote: AYES: O'Connell, Posey, Delgleize, Hardy, and Brenden NOES: Semeta, and Peterson Council/PFA Regular Minutes June 19, 2017 Page 13 of 15 ADMINISTRATIVE ITEMS 18. Approved report submitted on Downtown Huntington Beach maintenance and public improvements as directed by a Councilmember Item submitted by Councilmember Brenden and Mayor Pro Tern Posey Councilmember O'Connell stated that because he has business interest Downtown, he was recusing himself from this vote, and left the dais. City Manager Wilson introduced Assistant City Manager Ken Domer who presented an overview of the Downtown Maintenance and Repair matrix. Councilmember Brenden thanked staff for a prompt and detailed report in response to Council's request. Councilmember Brenden further amended this item to return to Council with an updated report every 30 days for the next 6 months. The City Manager will direct staff to continue working with the Downtown BID to prioritize and refine the list and the associated cost estimates. Future reports to include recommendations for addressing unbudgeted funding needs. Councilmember Peterson suggested that the report be updated with Council every 60 days to reduce the amount of staff time required for this effort. City Manager Wilson confirmed that it will take probably more than 30 days to include details on the projects that require the involvement of other vendors such as Edison. Both Councilmember Brenden and Mayor Pro Tem Posey agreed to the change. Mayor Pro Tern Posey thanked staff for including the colored map in their report, and Assistant City Manager Domer confirmed that the Public Works Maintenance Division and GIS staff were responsible for producing it. There was further discussion and confirmation that the next staff report will include an update on the Malco Maintenance Agreement. Councilmember Semeta confirmed with staff that the next report will show who is responsible for the various identified projects. A motion was made by Brenden, second Posey to receive and file the compiled report on maintenance and public improvement efforts in Downtown Huntington Beach, and, as amended, return to Council with an updated report every 60 days for the next 6 months. The City Manager will direct staff to continue working with the Downtown BID to prioritize and refine the list and the associated costs estimates. Future reports to include recommendations for addressing unbudgeted funding needs. The amended motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None ABSTAIN: O'Connell [1 "0PMURMAul=Uir ' 19. Item submitted by Councilmember Peterson approved — Direct staff to initiate a Zoning Text Amendment to amend the Holly Seacliff Specific Plan regarding Vehicle and RV storage Council/PFA Regular Minutes June 19, 2017 Page 14 of 15 Councilmember Peterson stated that this item is not changing the parcel's zoning, but is providing a use opportunity. Using the land for this purpose will require site improvements to remove hazards, and will require a proposal for grading and temporary fencing that must be approved through the Planning Department. Councilmember Hardy confirmed with staff that the process will require public notification, approval by the Planning Commission, and City Council. She further stated her doubt that this will be an interim or temporary situation, but she will support this item to ensure the proper process is followed. Mayor Delgleize and Director Hess discussed that zoning will not be changed from RMH, but this item, if approved, would add the storage of vehicles and RVs to the existing residential use. Director Hess and Councilmember Hardy discussed that a defined time frame could be included in this item, or it could be added during the approval process. Councilmember Peterson stated that he would amend his recommended action to provide for review every five (5) years. Councilmembers Semeta and Brenden stated their support based on the clarification that the approval process includes public notification and discussion. A motion was made by Peterson, second Posey to approve as amended to direct staff to initiate a Zoning Text Amendment to amend the Holly Seacliff Specific Plan so that vehicle and recreational vehicle storage is an allowable interim use and minimize the required site improvements, as amended to include language that provides for review every five (5) years. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Hardy, Brenden, and Peterson NOES: Delgleize COUNCILMEMBER COMMENTS (Not Agendized) Mayor Pro Tem Posey reported touring Potter's Lane at American Family Housing in Midway City, making an appearance at the 6th Annual Pacific Coast Dreamin' Barefoot Ball to support the Bolsa Chica Conservancy, attending the Association of California Cities - Orange County (ACC-OC) Infrastructure Tour at West Coast Arborists, Inc. in Anaheim, and the 4th Annual Community and Clubs Hall of Fame at the Elks Lodge. Councilmember Semeta reported installing the new Board for The Friends of the Library, attending the Chilli at the Beach, and that she will be -attending the International Museum of Surfing`s attempt at the Guinness record for the Surfing Circle of -Honor. She also encouraged people to visit the Corner Gallery at Huntington Beach Library to enjoy the new art display which includes watercolor art by her friend Carol Wolf. She thanked the Kiwanis for the great pancake breakfast made available on the 4th of July, and wished everyone -a Happy 4th. Councilmember O'Connell reported attending the Opening Ceremony for Operation Surf Huntington Beach at Pier Plaza, the 6th Annual Pacific Coast Dreamin' Barefoot Ball, the (ACC-OC) Infrastructure Tour at West Coast Arborists, Inc., and Chili at the Beach. Also, he will be attending the Surfing Circle of Honor attempt to set a new Guinness record. Council/PFA Regular Minutes June 19, 2017 Page 15 of 15 Mayor Delgleize reported attending the Opening Ceremony for Operation Surf Huntington Beach at Pier Plaza, the Literacy Annual Awards event at Central Library for the volunteers who assist non or limited English speakers, and she will be attending the Surfing Circle of Honor attempt to set a new Guinness record, including the party at the end of the day at the Pasea Hotel. Councilmember Brenden congratulated all of the community's graduates whether elementary or middle school, high school or college, and recognized Spencer Hagerman, an Ocean View High School senior in the audience who is headed to Yale. Councilmember Brenden reported attending many of the events already mentioned, plus the Above and Beyond booth sponsored by Boeing at Discovery Cube Orange County, Santa Ana, the Chamber of Commerce monthly AM Connect Breakfast that featured Mayor Pro Tern Posey's State of the City address, A Few Good Men breakfast provided by Girls Inc. to recognize two men from the community who have helped to empower girls, and the 4th Annual Community and Clubs Hall of Fame luncheon sponsored by the Boy Scouts at the Huntington Beach Elks Lodge. ADJOURNMENT — At 8:20 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, July 17, 2017, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. The regularly scheduled meeting of July 3, 2017, has been cancelled. City Clerkeand ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: L� %•i fig � / _ L� ; � "1- .I Lt�/ � 1 . l � i y� i. 'ii�Y d.:. 1 .:'1 � ' .► 7