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HomeMy WebLinkAbout2017-11-06Minutes City Council/Public Financing Authority City of Huntington Beach Monday, November 6, 2017 4:00 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:00 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at www.surfcit -hb.or / overnment/a endasl 4:00 PM - COUNCIL CHAMBERS CALLED TO ORDER — 4:01 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: Study Session Item #1: PowerPoint presentation entitled City of Huntington Beach Water System Infrastructure and Rates Study submitted by Director of Public Works, Travis Hopkins. PUBLIC COMMENTS PERTAINING TO STUDY SESSION I CLOSED SESSION ITEMS (3 Minute Time Limit) — None STUDY SESSION 1. The Public Works Department presented the results and recommendations of a water rate study. Travis Hopkins, Director of Public Works, introduced Tom Herbel, City Engineer, Ken Dills, City Project Manager, and Sanjay Gaur of Raftelis Financial Consultants, Inc. who presented a PowerPoint communication entitled: Water System Infrastructure and Rates Study, Investing in Our Future with slides entitled: Importance of Water System, Priorities and Goals, Cost to Replace our Water Infrastructure? (2), Infrastructure Planning (2), Water Master Plan, WMP Projects & Costs, Near Term Projects (5 Years), Water Rates Study, Water Rates Background (2), Water Master Plan, Rate Study Recommendations, Rate Recommendation, Recommended Reserve Policy, Beginning Reserve Balance Water and Water Master Plan, Proposed FY 2018-19 Water Rates, Average Single -Family Residential Bill, Comparison of Regional Agencies` SFR Water Rates, Next Steps and Questions? Council/PFA Regular Minutes November 6, 2017 Page 2 of 27 Councilmember Brenden and Director Hopkins discussed details related to the rates compared to other groundwater area agencies. Councilmember Brenden and Manager Dills discussed the "other" cost increases such as the new "capacity" and "readiness to serve" charges, as well as the "connection fee". There was further discussion with Engineer Herbel regarding asset replacement costs. Mayor Pro Tem Posey and staff discussed the "readiness -to -serve" and "capacity" increase of 56% from Metropolitan Water District (MWD), and the "connection" fee increase of 62% from Municipal Water District of Orange County (MWDOC), amounting to approximately $600,000. Also, staff confirmed that every period of drought basically sets a new "normal" for water usage. Councilmember Semeta and staff discussed costs related to the 405 Freeway improvement project. RECESSED TO CLOSED SESSION FOR ITEM NOS. 2-6 — 4:37 PM A motion was made by O'Connell, second Posey, to recess to Closed Session for Items 2 — 6. With no objections, the motion carried. 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 Police Officers' Association (POA), Police Management Association (PMA), Municipal Employees' Association (MEA) and Management Employees' Organization (MEO). CLOSED SESSION 2. Pursuant to Government Code §54956.9(d)(2) the City Council recessed into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, one (1). 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 Police Officers' Association (POA), Police Management Association (PMA), Municipal Employees' Association (MEA) and Management Employees' Organization (MEO). 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: Eric Hill v. City of Huntington Beach, Claim No. COHB-15-0004. 5. 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: Judy Hall v. City of Huntington Beach, Orange County Superior Court Case No. 30-2016-00884770. 6. 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: Steve Millington v. City of Huntington Beach, Jonathan H. Deliema, Joseph E. Schloss, United States District Court Case No. SACV15-1590 RGK. Council/PFA Regular Minutes November 6, 2017 Page 3 of 27 6.00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:00 PM ROLL CALL Present: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None PLEDGE OF ALLEGIANCE — Led by Girl Scout Troop 3042 from Hawes Elementary INVOCATION — Given by Kelly Frankiewicz, Master of Divinity, Leisure World Community Church, Seal Beach and member of the Greater Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not Intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS Mayor Delgleize proclaimed November 13 as "World Kindness Day". Mayor Delgleize provided examples of acts of kindness and stated that an act of kindness does not need to cost anything. She encouraged people to track their acts of kindness at cityofkindness.org or use #hbkindness. Mayor Delgleize called on nurse practitioner Jill Olmstead and proclaimed November 12-18 as "National Nurse Practitioner Week". Mayor Delgleize called on Community Services Manager, Dave Dominguez, to introduce Peter Brunner from the Rotary Club of Huntington Beach and Cynthia Varnell from the Kiwanis Club of Huntington Beach, who presented their generous donations for the "All Inclusive Beach Playground". Former Mayor Joe Carchio provided some background details on the project which began in 2007. Manager Dominguez added to the details of the project, and showed samples of the signage that will acknowledge the generous contributions of the Rotary and Kiwanis Clubs of Huntington Beach. Manager Dominguez also invited the community to the groundbreaking ceremony on Sunday, December 3, at 1 PM. Mr. Brunner, President, Rotary Club of Huntington Beach, presented a check of $50,000. Ms. Varnell, Immediate Past President, Kiwanis Club of Huntington Beach, presented a check of $25,000. Mr. Carchio also presented Certificates of Acknowledgement on behalf of California State Assemblyman Travis Allen, 72nd Assembly District, to the Rotary and Kiwanis Clubs of Huntington Beach for their contributions to this project. Mayor Delgleize presented commendations to newly crowned Miss Huntington Beach Queen Alyssa Welfringer and her court, Stephanie Miller and Mara James. Mayor Delgleize recognized Dr. Constance E. Polhemus, Principal of Peterson Elementary School, for her accomplishment in running the New York City Marathon. Dr. Polhemus described the honor of being one of 26 runners selected from across the United States to represent retiring medalist Meb Keflezighi. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental Council/PFA Regular Minutes November 6, 2017 Page 4 of 27 communications that were received by her office following distribution of the Council Agenda packet: City Manager's Report: Item No. 1 — PowerPoint presentation entitled Introduction to the Office of the City Attorney submitted by City Attorney, Michael E. Gates. Consent Calendar: Item No. 7 — Email communications regarding Oscar Rodriguez's possible appointment to the Environmental Board received from: Joe De Vore, Shayna Lathus, Stephanie Erickson, Judy White, Pat Roberts, Judy Gustafson, and Michelle Marciniec Item No. 11 — Email Communications regarding removing Sunflower Lane from Residential Permit Parking District "O" received from: Katie Barry, and Dory Formiller Item No. 19 — Email communications regarding Beach Cities Interfaith Services (BCIS) lease termination received from: Mary Martin, Sue Wilkinson, and Adyn Lee PUBLIC COMMENTS (3 Minute Time Limit) —42 Speakers The number [hh: mm: ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. Brian Burley, Huntington Beach City Council Candidate in 2018, was called to speak and shared his opinions about changes he would like to see related to the City's long-term financial planning. (02:15:05) Randy Wooten, owner of a building in Huntington Beach, was called to speak and voiced concerns about unknowingly leasing the space to a tenant who illegally operated a medicinal marijuana business at that location that resulted in enormous fines. At the advice of Code Enforcement, he evicted the tenant, but fearing the loss of his property, requested assistance by the City to resolve payment of civil fines now attached to his property tax bill. Mayor Delgleize asked him to complete a blue card for follow-up. (02:16:54) Father Christian Mondor, Vicar Emeritus, Sts. Simon and Jude Catholic Church, and Member, Huntington Beach Interfaith Council, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (BCIS). (02:18:53) Karen D. Maurer, Executive Director, Beach Cities Interface Services, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. and asked that the City allow them time to find an alternate location. (02:20:54) Shirley Dettloff, resident of Huntington Beach for 53 years, was called to speak and shared her opinion that the City needs to develop an action plan to address the issues related to homelessness, and the process for developing the plan needs to include open forum discussion for all parties, before taking action to terminate the City's sub -lease agreement with BCIS. (02:23:53) Ken Stanford, resident of Huntington Beach for over 35 years, was called to speak and voiced his opposition to Councilmember Item 25, regarding Censure of a Public Official. (02:26:58) Mary Ellen Barnes, a resident of Huntington Beach for over 30 years, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (02:30:29) Council/PFA Regular Minutes November 6, 2017 Page 5 of 27 Eilene Dubel was called to speak and stated her opinion that Huntington Beach Police Chief Handy is not performing satisfactorily. (02:33:48) Cheri Atkinson, resident of Huntington Beach for 39 years, clinical social worker for 46 years, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (02:37:08) Dennis Hashin was called to speak and congratulated Councilmember O'Connell for the recent successful fundraiser for Colette's Children's Home. He continued by sharing his opinion that the City Council is responsible for securing public safety and that includes hiring an adequate number of police officers. (02:40:17) Rabbi Stephen Einstein, Founding Rabbi Emeritus of Congregation B'nal Tzedek, and Founder and Past President, Huntington Beach Interfaith Council, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (02:43:04) Chris Kennekuc, Member, Huntington Beach Police Department, was called to speak and stated appreciation for the support that he and his family received recently from Police Chief Handy, fellow officers, Mayor Delgleize, and City Councilmember O'Connell, as he recovered from being shot in the line of duty. (02:47:28) Bianka Spruill, a resident of Huntington Beach for nearly 40 years, and Dispatcher, Huntington Beach Police Department, was called to speak and stated her opinion that more and more calls from the public are coming in asking for assistance, but there are fewer and fewer officers available to respond. (02:49:34) Miguel Prieto, Member of the Huntington Beach Police Officers' Association (HBPOA), was called to speak and shared his opinion that police resources and morale plummet as crime and violence increase. He asked that the City leaders help the Huntington Beach Police Department return to quality of service and address the performance of Huntington Beach Police Chief Handy. (02:53:08) Sean McDonough, three-year Huntington Beach Police Officer, Member, Board of Directors, HBPOA, was called to speak and shared his opinions that police management needs to be reformed and the department is understaffed. He also thanked the community for their support during recent traumatic officer incidents. (02:56:19) Yasha Nikitin, Vice President, Huntington Beach Police Officers' Association (HBPOA), was called to speak and stated his opinion that crime and violence against police officers are on the rise, yet the Police Department is at 1988 staffing levels. In his opinion there is strong community support for the Huntington Beach Police Department issues that need to be addressed by City leaders in order to maintain a city of law and order. (02:59:35) Natalie Moser, Huntington Beach resident for 39 years, and Member, Huntington Beach Interfaith Council and Huntington Beach Human Relations Task Force, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:02:41) Tom Wesley, Site Manager, Beach Cities Interfaith Services, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:05:12) Council/PFA Regular Minutes November 6, 2017 Page 6 of 27 Ralph Bauer was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub- lease agreement with Beach Cities Interfaith Services, Inc. (03:08:29) Mary Hiber, resident of Huntington Beach for over 45 years, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:10:52) Barry Kielsmeier, resident of Huntington Beach for 30 years, Secretary, Board of Directors, Beach Cities Interfaith Services, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:12:09) Margery Lindsey, resident of Huntington Beach for 37 years, was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:15:30) Kyle Scrimgeour was called to speak and stated his qualifications and interest in being re -appointed to the Environmental Board. (03:17:17) Randy Edwards, Huntington Beach business owner, was called to speak and stated he was asked to speak in support of the Huntington Beach Police Officers. He voiced his opinion that Huntington Beach Police Chief Handy should move on, and the City Council should ask him to leave, based on the information that supposedly ninety-two percent (92%) of the officers have no confidence in him. (03:19:24) David Humphreys, President, Huntington Beach Police Officer's Association (HBPOA), was called to speak and expressed condolences to the family and friends of the victims of violence in Sutherland Springs, Texas, at their place of worship. He also stated his opinion that the Huntington Beach Police Department is under staffed, crimes are increasing, and asked that rebuilding the Department become a priority. (03:22:13) Linda Cornejo Rowlson was called to speak and expressed thanks and appreciation to former and current City Council members Debbie Cook, Donald Hanson, Gil Coerper, Keith Bohr, Cathy Green, Joe Carchio and Jill Hardy who all supported the new All Inclusive Beach Playground through the years it took for the project to be completed. (03:25:22) Teresa Carlisle, Chair, Huntington Beach Art Center Steering Committee, was called to speak and invited everyone to the Annual Exhibition opening on November 18, 5:30 - 9 p.m. Ms. Carlisle explained that this is a juried exhibition, showcasing local and area artists using a variety of media. (03:28:32) John Christiana, current resident of Laguna Beach, was called to speak and shared experiences which he described as personal harassment and government abuse by the FBI and Huntington Beach Police Department, which in his opinion is being directed by Police Chief Handy. (03:29:35) Clacy Griswold was called to speak and voiced his opposition to Councilmember Item 25, regarding Censure of a Public Official. (03:32:50) Chris Griswold was called to speak and voiced his opposition to Councilmember Item 25, regarding Censure of a Public Official. (03:34:06) Rev. Doctor Peggy Price, a resident of Huntington Beach for 30 years, Minister, Center for Spiritual Living, and Founding Member of the Greater Huntington Beach Interfaith Council, was called to speak and stated her concerns about how the Beach Cities Interfaith Services sub -lease agreement is, in her Council/PFA Regular Minutes November 6, 2017 Page 7 of 27 opinion, not being handled in a compassionate manner by officials who supposedly share a commitment to kindness as a compassionate city. (03:36:33) Oscar Rodriguez, a resident of the Oak View neighborhood of Huntington Beach for 22 years, was called to speak and asked for the City Council's support by approving his appointment to the Environmental Board as approved by Council Liaisons Council Members Hardy and O'Connell. He further stated his support for Police Chief Handy and the efforts of the Huntington Beach Police Department in the Oak View neighborhood which has resulted in a twenty-four percent (24%) reduction in crime. (03:39.55) Reverend Christopher Montella, Chair, Bishops Commission, LGBTQ Ministry, Episcopal Diocese, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:42:02) Rich Gomez, Southwest Regional Council of Carpenters, a resident of Huntington Beach for 30 years, was called to speak and voiced his opposition to Councilmember Item 25, regarding Censure of a Public Official. (03:44:44) Reverend Michael Archer, Rector, St. Wilfrid of York Episcopal Church of Huntington Beach for the last thirteen years, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub- lease agreement with Beach Cities Interfaith Services, Inc. (03:45:55) Eric Faber, a resident of Huntington Beach for 30 years, was called to speak and stated his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (03:49:06) Pat Goodman was called to speak and stated her opposition to Agenda Item No. 19 to terminate the sub- lease agreement with Beach Cities Interfaith Services, Inc. (03:52:00) Victor Valladares, Oak View ComUNIDAD, was called to speak and stated his support for appointing Oscar Rodriguez to the Environmental Board as approved by Council Liaisons Council Members Hardy and O'Connell. He further stated his opinions about the current situation between Police Chief Handy and Huntington Beach Police Officers' Association (HBPOA) by reading selections from previous HBPOA meeting minutes. (03:55:18) Andrissa Dominquez was called to speak and stated her opposition to Councilmember Item 25, regarding Censure of a Public Official. She also stated her support of Police Chief Handy and his great community outreach approach, and voiced her opposition to Agenda Item No. 19 to terminate the sub- lease agreement with Beach Cities Interfaith Services, Inc. (03:58:40) Doug Martin, former Huntington Beach Police Officer for 22 years, was called to speak and shared his opinion that the Huntington Beach Police Department is under staffed, crimes are increasing, and asked the City Council to take action that will ensure an adequately staffed Police Department. (04:01:51) Omar Siddiqui, Candidate for Congressional District 48, was called to speak and voiced his opposition to Agenda Item No. 19 to terminate the sub -lease agreement with Beach Cities Interfaith Services, Inc. (04:05.31) Kim Kramer, resident of Huntington Beach, was called to speak and shared his opinions in support of Police Chief Handy and thanked him, and the Huntington Beach Police Officers on the street, for their service to Huntington Beach. (04:09:10) Council/PFA Regular Minutes November 6, 2017 Page 8 of 27 COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Brenden reported meeting with Municipal Employees' Association (MEA) members, participating with the Ad Hoc Committee on Coastal Area Odors, and attending a Public Cable Television Authority (PCTA) Board meeting as a Council Liaison from Huntington Beach. PCTA is the agency that monitors federal and state video service provider customer service standards, as well as creating original local programming. Mayor Pro Tern Posey reported attending a Chamber of Commerce Government Affairs Committee meeting which reviews legislation pending in Sacramento, and at the federal government level. These meetings are held at 8 pm every fourth Wednesday of each month and are open to the public. Councilmember Semeta reported attending the Chamber of Commerce Work Smart Conference. Councilmember O'Connell reported attending a meeting of the Commission to End Homelessness, and there will be a report to the County Board of Supervisors recommending disbanding this Commission and creating another organization. He also attended a meeting of the City Selection Committee, the committee that selected him to hold a position on the Commission to End Homelessness. He also reported presenting a proclamation from the Mayor of Houston to Teamsters Joint Council #42 which was responsible for loading up and delivering six big rigs of items from Southern California donors needed by Houston flood victims. He also reported meeting with members of the Huntington Beach Police Officers' Association (HBPOA) and members of the HB Firefighters' Association (HBFA). Mayor Delgleize reported attending Orange County Transit Authority and Regional Transit Authority meetings, and announced that she was re -appointed by the City Selection Committee for a position on the Commission to End Homelessness. CITY MANAGER'S REPORT City Manager Fred Wilson announced that because of time constraints, City Manager's Report Item No. 2 regarding Code Enforcement overview will be tabled to the next meeting. 1. A report by the City Attorney regarding what the City Attorney's Office does, what services it has to offer, how the public can contact City Attorney Michael Gates presented a PowerPoint communication entitled Introduction to the Office of the City Attorney with slides entitled: City Attorney Team, What We Do, Performance, Contact and Questions. CITY TREASURER'S REPORT 3. Received and filed the City Treasurer's September 2017 Quarterly Investment Summary. Report City Treasurer Alisa Cutchen presented a PowerPoint communication entitled: City of Huntington Beach Quarterly Treasurer's Report with slides entitled: Market Overview - At 9130117, Economic Indicators, Debt/Equity Markets, Overview of City Investments, Portfolio Summary as of 9130117, Investments by Council/PFA Regular Minutes November 6, 2017 Page 9 of 27 Type As of September 30, 2017, Monthly Earnings - October 2016 to September 2017, $ in thousands, Portfolio Earnings - As of September 30, 2017, and Compliance. A motion was made by Brenden, second Posey to receive and file the City Treasurer's Quarterly Investment Report for September 2017, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None CITY ATTORNEY'S REPORT 4. City Attorney Michael Gates provided an update on the Kennedy Commission vs. City of Huntington Beach Appeal City Attorney Michael Gates announced that on October 31, 2017, the Court of Appeals published their final ruling on the City's appeal on this case in favor of the City of Huntington Beach. This victory puts to rest key issues regarding the City's ability to exercise local control on certain zoning matters. As a Charter City, he argued before the Court that Huntington Beach is not bound by certain State zoning requirements, and the Court agreed. This Kennedy Commission case was never about affordable housing, and recent zoning legislation from Sacramento does not impact this Court ruling. City Attorney Gates thanked the City Council and Mayor for their support of his recommendation to file an appeal. CONSENT CALENDAR Mayor Pro Tern Posey pulled Item Nos. 6 and 7 for further discussion. Councilmember Brenden pulled Item Nos. 8, 10, and 11 for further discussion. Mayor Delgleize pulled Item No. 19 for further discussion. 5. Approved and adopted minutes A motion was made by Peterson, second O'Connell to review and adopt the City Council/Public Financing Authority regular meeting minutes dated October 16, 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 6. Approved recommendations B and C for appointments to the Community Services Commission (CSC) with terms to expire June 30, 2018, as provided by the local School Districts Mayor Pro Tern Posey pulled the item to act only on recommended actions B) and C). A motion was made by Posey, second Peterson to approve the appointment of Bridget Kaub, recommended representative of the Huntington Beach City School District, to the Community Services Commission for the remainder of the July 1, 2017, to June 30, 2018, term; and, approve the appointment Council/PFA Regular Minutes November 6, 2017 Page 10 of 27 of Roy Miller, recommended representative of the Huntington Beach Union High School District, to the Community Services Commission for the remainder of the July 1, 2017, to June 30, 2018, term. The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: O'Connell A motion was made by Hardy, second by O'Connell to approve the appointment of Mark Bixby, recommended representative of the Ocean View School District Board of Trustees, to the Community Services Commission for the remainder of the July 1, 2017, to June 30, 2018 term (recommended action A). A substitute motion was made by Brenden to approve the appointment of John Briscoe, recommended representative of the Ocean View School District Board of Trustees, to the Community Services Commission for the remainder of the July 1, 2017, to June 30, 2018 term (recommended action A). The motion failed due to lack of a second. The original motion made by Hardy, second O'Connell, failed by the following vote: AYES: Hardy, and O'Connell NOES: Semeta, Posey, Delgleize, Brenden, and Peterson 7. Approved the reappointments of Donald Kyle Scrimgeour and Michelle Claud -Clemente as recommended by Council Liaisons, Councilmembers Hardy and Billy O'Connell; and, received and filed the 2016 Annual Report Mayor Pro Tern Posey pulled the item to act only on recommended actions B) and C). A motion was made by Posey, second Peterson to re -appoint Donald Kyle Scrimgeour and Michelle Claud -Clemente, both with term expirations of June 30, 2021; and, receive and file the 2016 Environmental Board Annual Report. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None A motion was made by Hardy, second O'Connell to approve the appointment of Oscar Rodriguez to the Environmental Board as approved by Council Liaisons, Councilmembers Hardy and Billy O'Connell to fill the seat left vacant by Kim Nicolson, with a term expiration of June 30, 2019 (recommended action A). The motion failed by the following vote: AYES: Hardy, and O'Connell NOES: Semeta, Posey, Delgleize, Brenden, and Peterson Council/PFA Regular Minutes November 6, 2017 Page 11 of 27 8. Received and filed updated information regarding the status of the commissioning of Public Art at the Senior Center in Central Park Councilmember Brenden pulled the item to confirm with staff that the $100,000 account is restricted to commissioning public art at the Senior Center in Central Park. Staff explained that the funds allocated are part of the bond associated with the project, and to consider alternatives at other locations would require Bond Council involvement. A motion was made by Brenden, second O'Connell to receive and file updated project information regarding the status of the commissioning of public art at the Senior Center in Central Park. Councilmember Semeta inquired, and staff explained the Request for Proposal (RFP) process which involves Community Services and Planning Department review of submitted proposals. Councilmember Semeta and staff discussed the possibility of placing public art by local artists inside the center. Councilmember Peterson inquired, and staff explained why the Allied Arts Board (AAB) is not involved in the process to select public are in new developments. Councilmember Peterson voiced support for involving the AAB, and for commissioning local artists. Councilmember O'Connell stated that he would like to ensure that local artists are provided opportunities and be encouraged to participate in City projects like this. The original motion made by Brenden, second O'Connell, carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 9. Authorized Bond release for public Storm Drain improvements constructed by AvalonBay Communities, Inc. the Developer of HB Lofts (Mixed Use Project located at Gothard Street and Center Avenue) A motion was made by Peterson, second O'Connell to release Guarantee & Warranty Bond No. 106297351 (Attachment 2), and instruct the City Clerk to notify AvalonBay Communities, Inc. and the City Treasurer to notify Travelers Casualty and Surety Company of America, of this action. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 10. Awarded and authorized execution of a construction contract in the amount of $102,488.00 to PaveWest, Inc. for the Park Bench Cafe Parking Lot Improvements, CC-1562, and approve up to 15% in construction change orders Councilmember Brenden pulled.this item to discuss with staff if the surplus (difference between what was budgeted for this project and actual cost) can be used for other Central Park infrastructure items. Director of Community Services Janeen Laudenback confirmed that there is $500,000 budgeted for Central Park, and the Central Park Committee has prioritized projects. They will move projects up the priority list as other projects are completed. Councilmember Brenden asked, and Director Laudenback confirmed, that lake erosion control will be introduced to the Committee as a current issue. Council/PFA Regular Minutes November 6, 2017 Page 12 of 27 A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid submitted by PaveWest, Inc. in the amount of $102,488.00; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; and, authorize the Director of Public Works to approve up to fifteen percent (15%) in construction change orders. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 11. Adopted Resolution No. 2017-48 removing Sunflower Lane from Residential Permit Parking District "O" Councilmember Brenden pulled the item to question whether or not the request should include Briarwood Drive since it resides within the District. Transportation Manager Bob Stachelski explained that the four properties bordering Briarwood did not request its removal. A motion was made by Brenden, second O'Connell to Continue to December 6 request to Adopt Resolution No. 2017-48, "A Resolution of the City Council of the City of Huntington Beach Removing Sunflower Lane from Residential Permit Parking District "O" as amended to verify removal of Briarwood Drive. A substitute motion was made by Peterson, second Hardy to Adopt Resolution N. 2017-48, "A Resolution of the City Council of the City of Huntington Beach Removing Sunflower Lane from Residential Permit Parking District "O." The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: O'Connell Councilmember Brenden and Director of Public Works Travis Hopkins agreed to consider removal of Briarwood Drive from Residential Permit Parking District "O" in order to simplify code enforcement, and present the request at a future City Council meeting. 12. Adopted Resolution No. 2017-49 amending the City's Classification Plan by adding the classification of Assistant Civil Engineer A motion was made by Peterson, second O'Connell to adopt Resolution No. 2017-49, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan by Adding the Classification of Assistant Civil Engineer." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 13. Adopted Resolution No. 2017-51 declaring the City's Intention to Disestablish the Huntington Beach Auto Dealers Association Business Improvement District (BID); and, schedule a Public Hearing for December 4, 2017 Council/PFA Regular Minutes November 6, 2017 Page 13 of 27 A motion was made by Peterson, second O'Connell to adopt Resolution No. 2017-51, "A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Disestablish the Huntington Beach Auto Dealers Association Business Improvement District'; and, direct the City Clerk to schedule a public hearing to be held on December 4, 2017, and send copies of the Resolution of Intention to Disestablish the Huntington Beach Auto Dealers Association Business Improvement District to each auto dealer, and publish the same in a newspaper of general circulation. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 14. Approved the Ocean View Estates Market Rate Rental Agreement and Ocean View Estates Driftwood Rental Agreement extending the park's use through September 2024 (7051 Ellis Avenue) A motion was made by Peterson, second O'Connell to approve an Ocean View Estates Market Rate Rental Agreement extending the closure date until September 30, 2024; and, approve an Ocean View Estates Driftwood Rental Agreement extending the closure until September 30, 2024, and approve a three-year phase -in to achieve market rates starting on October 1, 2019 and ending October 1, 2021. 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 Cooperative Agreement C-7-1828 with the Orange County Transportation Authority (OCTA) and the Cities of Anaheim, Fountain Valley, Fullerton, Garden Grove, Stanton, and Westminster for a traffic signal synchronization project along Magnolia Street; and, approved appropriation of funds A motion was made by Peterson, second O'Connell to appropriate $199,789 from the undesignated Air Quality Management District (201) fund balance to account 201900013.82700; and, approve and authorize the Mayor and City Clerk to execute "Cooperative Agreement No. C-7-1828 Between Orange County Transportation Authority and Cities of Anaheim, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Stanton and Westminster for Magnolia Street Regional Traffic Signal Synchronization Project." 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 Cooperative Agreement C-7-1829 with the Orange County Transportation Authority (OCTA) and the Cities of Anaheim, Fountain Valley, Fullerton, Garden Grove, and Westminster for a traffic signal synchronization project along Brookhurst Street; and, approved appropriation of funds A motion was made by Peterson, second O'Connell to appropriate $214,733 from the undesignated Air Quality Management District (201) fund balance to account 20190012.82700; and, approve and authorize the Mayor and City Clerk to execute "Cooperative Agreement No. C-7-1829 Between Orange Council/PFA Regular Minutes November 6, 2017 Page 14 of 27 County Transportation Authority and Cities of Anaheim, Fountain Valley, Fullerton, Garden Grove, Huntington Beach and Westminster for Brookhurst Street Regional Traffic Signal Synchronization Project." 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 Memorandum of Understanding (MOU) with the State of California Department of Fish and Wildlife for use of the City Lifeguard Boat Dock in Huntington Harbour behind Fire Station 7-Warner A motion was made by Peterson, second O'Connell to approve and authorize the Mayor and City Clerk to execute the "Memorandum of Understanding Between the City of Huntington Beach and the State of California Department of Fish and Wildlife for Use of the City Lifeguard Boat Dock." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 18. Approved and authorized execution of a Memorandum of Understanding (MOU) with the Sister City Association of Huntington Beach (SCAHB) to formalize the working relationship between agencies A motion was made by Peterson, second O'Connell to approve and authorize the Mayor and City Clerk to execute a "Memorandum of Understanding Between the City of Huntington Beach and the Sister City Association of Huntington Beach." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 19. NO ACTION TAKEN ON REQUEST TO Terminate of Sub -License Agreement by and between the City of Huntington Beach and Beach Cities Interfaith Services, Inc. (BCIS) for use of City -Licensed Property located at 18131 Gothard Street Mayor Delgleize pulled the item to thank everyone who expressed their concerns and support for Beach Cities Interfaith Services (BCIS), and shared some background details of meetings she and Councilmember Brenden have had with Rev. Karen Maurer and the BCIS Board. She fully supports the services BCIS provides, but believes a better location can be found. Councilmember O'Connell stated his appreciation for the public speakers and many Council members who support BCIS. A motion was made by O'Connell, second Brenden to allow BCIS to continue service at their current location until they find a new location, and with the assistance of the City, mediate with an independent consultant to identify a site for relocation prior to the current lease expiration date of October 13, 2018. Council/PFA Regular Minutes November 6, 2017 Page 15 of 27 Councilmember Peterson stated his support for BCIS and their services, but acknowledged there are issues that need to be addressed and suggested a meeting which would include representatives from the Police Department, City Council, and City Manager's office to work out solutions and assist in finding a new location in Huntington Beach. The current location is County land for which they are making plans, and the current lease does not expire until October 13, 2018. The plan should be to help BCIS relocate by that date. Mr. Peterson also suggested that action on the item be tabled until staff and stake holders can consider a plan. Mayor Delgleize spoke of extending the lease, and asking for assistance from the public about available properties appropriate for BCIS relocation. Councilmember Brenden expressed his belief in BCIS and their importance to the community. He also believes that the Council's Ad Hoc Committee on Homelessness should get involved and assist BCIS in finding a new location, and therefore supports Councilmember O'Connell's motion as long as the original termination date is honored. He also understands that the safety and crime concerns of nearby residents also need to be addressed. Councilmember Hardy stated her support of the services provided by BCIS, and encouraged BCIS to step up and ensure they have a new location before October 13, 2018. Councilmember Hardy agrees that it is appropriate for City staff to assist with finding a new location, but wanted to be clear that the City is not in the business of running a non-profit, nor providing free space for any non-profit organization. She expressed her interest in keeping BCIS in Huntington Beach, but not extending the lease. Councilmember Semeta thanked the public speakers who support BCIS, and discussed providing services that help those interested in resolving homelessness for themselves and others. Mayor Pro Tern Posey acknowledged that Huntington Beach is a City of Kindness, and in his opinion that means being kind to all, including people utilizing our parks and libraries. He stated his support of Councilmember Hardy's position that the lease continue until October 13, 2018. He further stated that he also believes there should be a committee convened that involves the Police Chief, BCIS staff, library and Park staff to address the issues. City Manager Wilson stated that staff from the Police Department and his office will make it a priority to meet with BCIS staff. A substitute motion was made by Semeta, second Hardy that the City will use its best efforts to try and facilitate finding a new location, without making a formal commitment. Discussion ensued to clarify the City's intentions to assist BCIS in finding a suitable property for relocation, and a consensus was reached to withdraw all motions on the item and take no action. PUBLIC HEARING 20. Continued to February 20, 2018 - Conditional Use Permit No. 13-0221Coastal Development Permit No. 13-014/Recirculated Mitigated Negative Declaration No. 13-008 for Rofael Marina and Caretaker Facility (Appeal of Planning Commission's Denial) - Continued from October 16, 2017 Council/PFA Regular Minutes November 6, 2017 Page 16 of 27 A motion was made by Brenden, second Semeta to continue appeal of Conditional Use Permit No. 13- 022 and Coastal Development Permit No. 13-014 to the February 20, 2018, City Council meeting at the applicant's request. The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 21. Denied Variance No. 17-003 (Santiago Appeal), which represents a request to deviate from several Zoning Code development standards to accommodate the relocation of a historic single-family residence to property located at 506 7th Street (continued from the October 2, 2017 and October 16, 2017 City Council meetings) Associate Planner Chris Wong presented a PowerPoint communication entitled Historic SFR Relocation with slides entitled: Project Description, Side Setback Variance, Height Variance, Lot Coverage Variance, Eave Setback Variance, Parking Dimension Variance, Nonconforming Expansion Variance, Historic Designation, Public Comments, Applicant Comments, Planning Commission Action, Action Appealed, Analysis, and Recommendation. (05:19:36) Councilmember Hardy and Planner Wong discussed details for both building heights and parking needs. Councilmember Peterson and Community Development Director Scott Hess discussed that staff historically maintains their original findings, but after hearing public comments at the Planning Commission Public Hearing, staff supports the Planning Commission recommendation. Director Hess also stated that zoning for this area has changed through the years which may have included floor area coverage and site ratio standards. Mayor Pro Tern Posey and Director Hess discussed that the Council could require a covenant on the property that stipulates it cannot be used for short-term vacation rentals unless codes change in the future. (05:30:33) Mayor Delgleize opened the Public Hearing for Item No. 21. 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 Public Hearing Item No. 21: PowerPoint presentation entitled City Council Historic SFR Relocation 506 7th Street Variance No. 17- 003, submitted by Associate Planner, Chris Wong. Email communication regarding Variance No. 17-003 received from Ronald M. Cole, Partner, Palmeiri, Tyler, Wiener, Wilhelm & Waldron LLP. Interoffice memo communication regarding revised Attachment No. 11 received from Associate Planner, Chris Wong. Email communications regarding the proposed Denial of Variance No. 17-003 (Santiago Appeal) received from: Althea Santuccu, Danny Santucci, J.D., Michael Stone, M.D., Mrs. Jessica Stone, John Acampora, Kathie A. Schey, Karen Bravata, Curt Huynh, Anita Anderson, Gloria Alvarez, Robert Moore, Council/PFA Regular Minutes November 6, 2017 Page 17 of 27 Michael Hoskinson, Suzanne Hart, Debbie Moore, Kathy Bryant, Tricia Getty, Danielle Carbonetta & Tim Stone, Brad Walker, Tom Shaw, Kim Kramer (2), Marsha Shaw, Marcia Curran, Vince Bravata, Cindi Motis, James Tucker, Chris Hart, Kathy Temmer, Yuanita Tambunan, Irene Briggs, Barbara and Jim McGillivary, Simon A. Stone, J.D., Joe Motis, John Getty, Anonymous, Catherine Johnson, and Darren Schecter. Public Speakers — 39 Ron Cole, Attorney for Applicant, Joseph Santiago, was called to speak and urged the City Council to support Variance No. 17-003 as the home being moved is of historical significance since it was built by a Civil War hero who fought with the Union Army. Mr. Cole stated this project has received broad support from the community (70+ individuals) as well as the Historic Resources Board, the Huntington Beach Historical Society (approximately 200 members), the American Legion Huntington Beach Post 133 (approximately 400 members), and Sons of Union Veterans of the Civil War. Mr. Cole reviewed the history of the approval process, including that staff originally approved the project which was vetted by the Fire Department, Public Works, and Building and Safety. The opposition expressed at the Planning Commission public hearing by approximately 20 people resulted in the Planning Commission voting to deny the application. Mr. Cole does not see any "new" information that was presented as claimed. It is Mr. Cole's opinion that the General Plan contains specific provisions favoring historical preservation projects. Policy LU 4.2.2 permits historically significant buildings to vary from City standards. Policy HCR 1.3.7 states that deviation to setbacks, height, parking and other requirements should be considered. (05:36:46) Joseph Santiago, Appellant, was called to speak and stated that he expects some outrageous claims to be made that are not true, and he hopes to mitigate the genuine concerns. Mr. Santiago stated his opinion that many of the opposition comments expressed at the Planning Commission public hearing were speculation and not based on fact but on fears, suspicions, and exaggerations. Mr. Santiago stated he has the financial backing, a partner with a 30-year development record, and is offering a performance bond to ensure the exterior of the project is completed within one year. The Hearn house will arrive on site prepped and painted, only needing a new roof. Mr. Santiago continued by stating his opinion that the Manning house has not affected neighboring property values, and delays are related to the learning curve for both Mr. Santiago and the Planning Department. Mr. Santiago further stated that current conditions at the Manning house have improved tenfold as shown in presented photographs, and he expects everything to be completed by the end of the year. Mr. Santiago claimed project approval by Fire and Building and Safety departments, and addressed asbestos concerns as safe if shingles are left alone. Mr. Santiago opined concerns about structural collapse are highly exaggerated; and discussed mitigating drainage onto neighboring properties with rain gutters. He discussed retracting false rafter tails to add extra space between the building and the property line, and closed by stating that the Hearn house is grandly historic, urging Council support for this project. (05:41:53) Helen Vanefsky, resident of Huntington Beach for 33 years, stated that she owns an old house that she has remodeled and as an interior designer she will donate her time to this project to help see that it is completed in a timely manner. She stated the City's historical homes are what make Huntington Beach so beautiful, and projects like this will preserve history for future generations. (05:48:18) Chris Hart, a resident of Huntington Beach for 18 years, was called to speak and voiced his objections to Variance No. 17-003 because in his opinion, the house is too large for the parcel, has no historical significance, the project changes the original character and design of the house, and Mr. Santiago's previous project has yet to be completed after 13 years. He also felt that Mr. Santiago is not being forthright with his stated intended use of this property. (05:50:08) Council/PFA Regular Minutes November 6, 2017 Page 18 of 27 Suzanne Hart, 18 year resident, was called to speak and voiced opposition to Variance No. 17-003 because in her opinion, Mr. Santiago has demonstrated a miserable track record for restoring property, and expressed fears that the size of the buildings will create a physical and visual encroachment on neighboring properties. (05:51:56) Marsha Shaw, a Huntington Beach resident since 1971, was called to speak and stated her opposition to Variance No. 17-003 and her opinion that the project will demean the two adjoining properties, that the variances requested are excessive and over reaching, and that the project will not enhance the historic home or the neighborhood. (05:54:13) Kathy Bryant, a resident involved with the Historical Resources Board and Huntington Beach Preserve our Past, was called to speak and stated her opposition to Variance No. 17-003 because in her opinion, this old beautiful three-story home came from a corner lot and will be overbearing when placed on a standard lot. She also opined it is highly unusual to place a historic house so that it faces an alley, and staffed that Mr. Santiago's previous project is advertised as a BNB, and she believes that is what he will do with this project also. (05:56:27) La Rue Moorhouse was called to speak and discussed knowing the original owners of the Hearn house, had visited it many times, and can verify that it was not properly maintained through the years. Ms. Moorhouse believes that the home has experienced further deterioration while in storage, is too large for placement on the proposed lot, and stated her support for the Planning Commission's denial of the project. (05:58:42) Jim Tucker was called to speak and voiced his opposition to Variance No. 17-003. He explained that he is not opposed to restoration of historic buildings, but in his opinion, this building is just too large for the proposed lot, and he certainly would not want to live next door to this project. (06:01:16) Kathy Stemmer, residing directly across the street from the proposed project, was called to speak and stated her opinion that the Hearn home came from a double lot and is too big for the proposed location. She stated she supports restoring historical buildings, but not this building at this location. (06:02:46) Yuanita Tambunan, residing next door to the proposed project, was called to speak and voiced her opposition to Variance No. 17-003. In her opinion, the proposed variances will create significant safety issues and will negatively impact the neighborhood parking. (06:03:41) Cindi Motis was called to speak and stated her support of historical buildings as her home has been in the family since the 1930s. Ms. Motis also stated her opposition to Variance 17-003 because in her opinion, this project does not conform to existing planning and building codes. It was her opinion that the project does not preserve the original structure, and therefore should not be called a historical preservation according to Federal standards. (06:04:42) Curt Huynh, residing next door to the project, was called to speak and stated his opposition to Variance 17-003 because the original location for this home was a double sized corner lot, and in his opinion, it is too large to be placed behind another structure and squeezed into a standard interior lot. Mr. Huynh further opined that the applicant is using the guise of historical preservation to request six major variances, and described his existing issues with some flooding on his property during winter rains without having any excess runoff from this proposed project. He voiced concerns about fire safety because of the extreme close proximity of this new structure to his property line, and about a variance that would allow a nonconforming structure that is 600 percent over the building code. (06:07:49) Council/PFA Regular Minutes November 6, 2017 Page 19 of 27 Mike Curran, a resident of 7th Street, was called to speak and stated his opposition to Variance No. 17- 003 because in his opinion, parking is already an issue on any given day, and this project will only exacerbate the issue. He also opined that moving a large house from a large lot onto a standard lot with an existing house will create a crowded situation, and if applicant's past performance is any indicator, this project will create blight in the neighborhood. (06:11:16) Joe Motis, a resident of 7th Street, was called to speak and stated his opposition to Variance No. 17-003. Mr. Motis shared personal experience dealing with flood issues from a neighbor's expansion, and shared his opinion that the applicant's previous project is a good indicator of how this current project will look. (06:14:05) Shelly Leeson, a resident living across the alley from this project, was called to speak and stated her opposition to Variance No. 17-003. In her opinion, this project, placed into the middle of a community of families, will most likely provide transient living conditions. Ms. Leeson encouraged the Council to think about what this structure will do in terms of safety for families and children in the neighborhood, and given Mr. Santiago's history, her neighborhood could expect about 15 years of construction on this project. (06:15:04) John Janis, a resident of 10th Street, was called to speak and shared his frustration from living next door to a 13-year construction project that still isn't finished. Based on this experience, Mr. Janis stated his opposition to Variance No. 17-003. Having a 36-year construction background, he believes both projects could be structurally unsound as related to earthquake safety, and variances granted 13 years ago have not yet been completed. Mr. Janis voiced concerns of precedence should the height variance be approved for the 7th Street project, and shared his observation that the 10th Street project has not yet received a certificate of occupancy, yet Mr. Santiago rents out rooms as an Airbnb. (06:18:13) David Wentworth, Vice Chair, Historic Resource Board, was called to speak and stated that as a private citizen he supports Variance No. 17-003 to save both the Letterman and Hearn houses. He shared his pleasure at being able to see old homes that have been preserved rather than cleared off for new construction in the downtown area. He stated a bit of history about the Hearn home as found in a book written by Mr. Santiago, a member of the Historic Resource Board, in support of his opinion of the historical value. (06:21:38) Michael and Jessica Stone, 20 year residents, former 10th Street homeowners and currently living across the alley from the 7th Street project, were called to speak and stated their opposition to Variance No. 17-003. Dr. Stone described talking to people that claim to rent a room in the Manning house, and his opinion that Mr. Santiago will do exactly the same with the Hearn house on 7th Street. Dr. Stone also felt that the existing home on the 7th Street lot doesn't appear to be a sound structure. (06:23:26) Debbie Moore, a 23-year resident of 7th Street, was called to speak and stated her opposition to Variance 17-003. Ms. Moore stated that after 13 years the 10th Street restoration is far from being completed, and she wonders if the 7th Street restoration will ever be completed, and which of these projects the owner will spend his time on. (06:26:47) Darren Schecter, resident of the 500 block of 7th Street, was called to speak .and shared that he is opposed to Variance 17-003 and already sent a long letter that details the technical reasons that he believes the requested variances fail to meet four basic threshold requirements. Mr. Schecter stated his opinion that it doesn't matter who is leading this project, it just does not make any logical sense, and he cannot see the completed project being described as amazing or charming by supporters as anything but rather ugly. He further stated his opinion that failure to approve this project is not denying the preservation of history, but would be denying the preservation of history that is nonsensical. (06:28:04) Council/PFA Regular Minutes November 6, 2017 Page 20 of 27 Robert Moore, a 37-year resident of Huntington Beach who currently lives in the 400 block of 7th Street, was called to speak and stated his opposition to Variance 17-003. Mr. Moore stated his observation of the Hearn home being moved to a storage lot two years ago — after dormers and roof were removed — and has been left uncovered, unattended and uncared for since. He wonders what condition it really is in. Mr. Moore also stated that just based on Mr. Santiago's history with the 10th Street project in over a decade, the future doesn't look any better for this project. He also stated he wonders how many of the seven bedrooms in the 7th Street project will be rented out as BNBs. (06:31:23) John Acampora, a resident on 6th Street since 2005, was called to speak and stated his opposition to Variance 17-003. He stated his opinion that Mr. Santiago has a right to purchase and build a property, but he also has responsibilities to the community to follow-up by completing the project. Mr. Acampora continued by reading from the Planning Commission minutes of the June 27, 2017, meeting, Page 27, Item 3, which states: "By granting a variance, No. 17-003 will be materially detrimental to the public welfare or injurious to property in the same zone classification." (06:33:46) Mike De La Cruz, a 20-year resident at 8th and Walnut, was called to speak and stated his support of Variance No. 17-003. Mr. De La Cruz stated that in his opinion the concerns expressed by others regarding the structural integrity of the Hearn home are unfounded as the City's Building Department is responsible for that determination. He also stated his observation that many blocks in the downtown area have been impacted by construction projects for years, including his next -door lot, as well as parking issues. In his opinion these are facts of life when living in the area. (06:36:10) Surendra P. Barot, who has worked and lived in Huntington Beach since 1976, was called to speak and stated his support of Variance No. 17-003. He voiced his support for this project at the Planning Commission hearing and was shocked when they recommended denying it. He stated that in his opinion , a majority of the protesters to this project are speaking from a Not In My Back Yard (NIMBY) perspective. Mr. Barot also stated his opinion that history is important, and he has been personally involved in several historical restorations within the City. He handed his printed comments to the Sergeant -At -Arms to deliver to the Council when he reached his 3-minute time limit. (06:39:07) Nesip Turcan, a resident of 10th Street close to Mr. Santiago's house, was called to speak and stated his opposition to Variance No. 17-003. He shared information about the Airbnb ads and rental taking place at Mr. Santiago's house, stated that no interior repairs have been completed, and that renters park on the street and not in the garage. Mr. Turcan further stated his opinion that nothing about this property is up to building or fire codes, and that only two sides of the property were recently painted. It is his opinion that the City should not even consider another project by Mr. Santiago until he completes the 10th Street project and passes all inspections. (06:43:30) Bob Gibson, a 22-year resident of 10th Street, was called to speak and stated his opposition to Variance 17-003. He voiced concerns about another neighborhood being impacted by a debacle of a project that would allow a big house on top of a garage on a small lot. Mr. Gibson also requested that the City help with resolving issues at the 10th Street project. (06:46:33) Kyle Wohlgemuth, a 20-year resident of Huntington Beach, was called to speak and stated his support for Variance No. 17-003. Mr. Wohlgemuth stated that based on his long-term friendship with Mr. Santiago, he believes that Mr. Santiago's efforts to preserve history should be supported. (06:47:35) David Eastman, a veteran who has served in Operation Desert Storm and currently lives in Chicago, was called to speak and voiced his support of Mr. Joe Santiago and Variance 17-003. Mr. Eastman stated he has known Joe for most of his life, and voiced his opinion that Joe is well intended and now has the Council/PFA Regular Minutes November 6, 2017 Page 21 of 27 capital, partners and experience for this unique project that will add to the vitality and enrichment of the City. (06:49:22) Althea Santucci was called to speak and stated her opposition to Variance No. 17-003. With the project unanimously denied by the Planning Commission, she feels that the variances do not restore or maintain a historical property, but enlarge an existing property by two -hundred and eighty-three percent (283%), and will materially alter the look and character of the structure. In Ms. Santucci's opinion, the described alterations suggest the creation of a house that will be used as a high -density, multiple unit living space. In addition, Mr. Santiago has told Ms. Santucci that the house is wrapped in asbestos, yet he has no mitigation plans to protect the neighbors and surrounding area from potential toxins. Ms. Santucci stated her support of proper historical preservation efforts, but not for projects which in her opinion abuse the historical process and City codes with exceptions to create otherwise prohibited unsafe, high -density occupation structures. (06:52:32) Marty Davis, a 50-yr. resident of Huntington Beach, was called to speak and described his involvement in helping Mr. Joe Santiago completely remodel the interior of the 7th Street house in three to four months. He also explained that he is working on the 10th Street property and knows that Joe buys good materials, is diligent, and will do a good job completing the project. (06:55:50) Danny Santucci, a resident of Huntington Beach since 1989, was called to speak and stated his opposition to Variance 17-003. Mr. Santucci expressed his opinion that the variances requested show that the building being moved in is not the appropriate size for the lot space, and while Mr. Santiago has done his research, based on his past performance, the 7th Street project will be a disaster and just a continuation of what happened on the 10th Street project. (06:56.59) Jack Tyler was called to speak and stated his support for Joe and his projects. Mr. Tyler stated that in his opinion, the Manning house project was totally different and it isn't proper to expect the same outcome for the Hearn house. (06:58:05) Brian Crain, a 33-yr resident of Huntington Beach, was called to speak and stated his support for Variance No. 17-003, Mr. Crain stated that he is a former resident of another home owned by Mr. Santiago, and in his opinion Mr. Santiago will finish both the Manning and Hearn projects. (07:00:26) Tom Shaw, a 42-yr. resident of Huntington Beach living in a 1905 home next door to the 7th Street project, was called to speak and stated his opposition to Variance No. 17-003. Mr. Shaw stated his full support of restoration and even relocation of historic buildings, but not at the risk of neighborhood blight and adjoining property infringement. Mr. Shaw further stated his support of the Manning house project, but it seems to him that the City has either chosen to look away or is not able to move Mr. Santiago towards completion of this project. It is Mr. Shaw's position that in April of 2003 the Zoning Administrator made requirements of Mr. Santiago for the Manning project which 14 years later have not been completed. (07:03:08) Jim McKay, a 62-yr. resident of Downtown, was called to speak and continued reading Mr. Shaw's statement of opposition to Variance No. 17-003 by listing additional items that the Zoning Administrator required of Mr. Santiago in April of 2003 for the Manning house project which, according to Building . Department permits, 14 years later have not been completed. Mr. Santiago previously stated to the Planning Commission that some of these items listed should not have been listed as a variance and that the City did not have the right to request them. Consequently, they were eliminated from the list of variances. Mr. McKay asked if this can be expected for the current variances, that the City would relieve some of those variances due to pressure from Mr. Santiago. Mr. McKay continued to read differences between Mr. Santiago's two projects such as lot size, building heights and zoning. (07:06:21) Council/PFA Regular Minutes November b, 2017 Page 22 of 27 Barbara Haynes was called to speak, and in opposition to Variance 17-003, continued reading Mr. Shaw's statement and the list of differences between Mr. Santiago's two projects such as the fact that Mr. Santiago has stated that the current house on the 7th Street project will have to be temporarily moved from the lot while the Hearn house is moved in and placed on stilts, and then returned to the lot. The only way to judge a person's capabilities is to look to the past. Mr. Santiago should be asked to complete the 10th Street project before being allowed to proceed with the 7th Street project. This would be in the best interests of the City, and the residents on 7th Street and 10th Street. Ms. Haynes stated, "If it does not fit, you must not permit." (07:09:29) Kim Kramer, a resident of Huntington Beach, was called to speak and shared a picture of the Hearn house as it was being moved by Mr. Santiago on August 1, 2015, into storage. Mr. Kramer noted that the roof and eave tiles had been removed leaving the interior of the house exposed to the elements. Mr. Kramer stated it was expected the structure would be protected with tarps, however one week ago, on October 30, 2017, he and several other local residents viewed the house with Mr. Santiago and it was not protected. This house has been exposed to the elements including rain and standing water for more than two years. In Mr. Kramer's opinion, the house is a disaster, degraded, severely damaged and compromised both on the inside & outside. Mr. Kramer expressed his dismay at the intentional and deliberate neglect and disregard for this historic structure, especially by someone who claims to be a preservationist. Mr. Kramer wondered if it is Mr. Santiago's real intention to preserve history or short-term rental income. Mr. Kramer further stated that the day after his visit to the storage site he noticed that a tarp had been placed over the roof and eaves. Mr. Kramer stated his support for historic preservation, but he cannot support this project. (07:12:15) There being no more speakers, Mayor Delgleize closed the Public Hearing. (07:15:22) At the hour of 11:10 PM, a motion was made by Brenden, second O'Connell, to continue the meeting. Without opposition, the motion was passed. (07:02:13) Councilmember Semeta stated her belief that Mr. Santiago has a true interest in historic preservation, but she supports the Planning Commission's recommendation for denial because of the number of variances for this project, and the fact that the structure is too large for the lot. Councilmember Hardy echoed Councilmember Semeta's comments. In addition, she personally supports historical preservation that includes the proper setting, and in her opinion placing a large structure on a small lot is not preserving true Huntington Beach history. Councilmember Peterson stated that he believes Mr. Santiago has a jewel of a house which needs to be preserved, that maybe the project would work if a performance bond was included, and he encouraged Mr. Santiago to persevere in his efforts to restore the Hearn house. Councilmember Hardy stated that Agenda Item No. 14 regarding the Ocean View Estates Driftwood Rental Agreement that will be expiring in 2024 might create an opportunity for a proper historic preservation site. Mayor Delgleize concurred with the comments of fellow Council members, and will support the Planning Commission's recommendation. (07:16:25) A motion was made by Posey, second Brenden to deny Variance No. 17-003 which contains six requested variances to deviate from the HBZSO with suggested findings for denial (Attachment 1). Council/PFA Regular Minutes November 6, 2017 Page 23 of 27 The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 22. Public Hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986 held to adopt Resolution No. 2017-63 approving a Tax Exempt Bond Financing to be undertaken by the Public Finance Authority of Wisconsin with respect to certain projects of Prime Healthcare Huntington Beach, LLC located in the City of Huntington Beach, California (Huntington Beach Hospital) Deputy Director of Business Development Kellee Fritzal presented a PowerPoint communication entitled Prime Healthcare Huntington Beach LLC with slides entitled: Summary, Public Financing Authority, Huntington Beach Hospital, Public Hearing and Questions. (07:23:44) Mayor Delgleize opened the Public Hearing for Item No. 22. City Clerk Robin Estanislau announced there were no speakers. Mayor Delgleize closed the Public Hearing. (07:25:39) Councilmember Brenden confirmed with Director Fritzal that if Prime Healthcare Huntington Beach, LLC defaults on this bond, there is absolutely no risk to the City and the City would not be held liable. Mayor Delgleize expressed her appreciation to Mr. Rowe, CEO, for his leadership in making this investment in Huntington Beach Hospital. (07:25:54) A motion was made by Brenden, second O'Connell to conduct the Public Hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (Code) to Approve a Tax Exempt Bond Financing by the Public Finance Authority for Prime Healthcare Huntington Beach, LLC (Huntington Beach Hospital); and, adopt Resolution No. 2017-53, "Resolution of City of Huntington Beach, California Approving a Tax Exempt Bond Financing to be Undertaken by the Public Finance Authority with Respect to Certain Projects of Prime Healthcare Huntington Beach, LLC Located in the City of Huntington Beach California." The motion carried by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None ORDINANCES FOR INTRODUCTION 23. Approved for introduction Ordinance No. 4127 amending Chapter 2.28 of the Huntington Beach Municipal Code (HBMC) relating to health benefits for City Council City Manager Fred Wilson introduced this item as a response to Council's direction at the last meeting. Councilmember Peterson stated his opinion that Council Members are public servants who should not be asking for more benefits, and he described this as a benefit in that this allows participation in a larger group. Council/PFA Regular Minutes November 6, 2017 Page 24 of 27 Councilmember Brenden stated his opinion that it is highly unusual for any business entity to offer insurance to an employee and not include an option for family members. Councilmember Brenden further stated that there is no financial impact to the City as all costs for family members will be paid by the Council Member. A motion was made by Brenden, second O'Connell to, after the City Clerk reads by title, approve for introduction Ordinance No. 4127, "An Ordinance of the City of Huntington Beach Amending Chapter 2.28 of the Huntington Beach Municipal Code Relating to City Council." The motion carried by the following vote: AYES: O'Connell, Delgleize, Hardy, and Brenden NOES: Semeta, Posey, and Peterson COUNCILMEMBER ITEMS 24. Submitted by Mayor Pro Tom Posey — Economic Impacts of the 2017 Huntington Beach Air Show Councilmember O'Connell recused himself due to his economic interest in Legends, downtown, and left the dais. Mayor Pro Tern Posey introduced this item by stating he would like to have the City Manager meet with Visit Huntington Beach (HVB), collect the credit card data, and do a high-level fiscal impact financial analysis to demonstrate the benefits to the City from the Air Show, how the increased parking fees impacted the benefits, and what was the return of the City's investment in this event. Mayor Pro Tern Posey realizes it will take at least 90 days to secure all of the details because of the credit card reporting process. City Manager Wilson agreed that the required report should be available towards the end of January. Mayor Pro Tern Posey also stated that the item should also reflect that it is co-authored by Councilmember Brenden. Mayor Delgleize stated that the preliminary information looks very positive. Councilmember Brenden stated that Council authorized $100,000 of parking revenues to be allocated toward public safety costs, up to 50% of public safety costs, this year. The economic impact report will include transient occupancy tax (TOT), sales tax, and parking revenue. In addition, there are businesses hiring more employees because of the increased traffic, but this will not show on the requested report. Mayor Pro Tern Posey stated that the additional bonus of "free" advertising — the images posted on social media and the internet by attendees — is hard to assign a monetary value to. A motion was made by Posey, second Brenden to direct the City -Manager to conduct an Economic Analysis of the 2017 Air Show and report back to City Council in ninety (90) days. The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None Council/PFA Regular Minutes November 6, 2017 Page 25 of 27 RECUSED: O'Connell 25. Submitted by Mayor Delgleize and Counclimembers Semeta and Peterson WITHDRAWN — Censure of a Public Official Councilmember O'Connell stated regrets for the issue at hand, and committed to using the Councilmember "H" Item process for futures requests for action. Mayor Pro Tern Posey and Councilmember O'Connell discussed the situation further as related to procedure and protocol. Councilmember Peterson explained how rules must be followed so that there is transparency and the public is properly informed. City Attorney Michael Gates stated that the Brown Act must be followed, and described how the Mayor announced before every public comment segment on the agenda that Councilmembers are not to comment on or discuss anything that is not already agendized. Mayor Delgleize voiced concerns about Councilmember O'Connell's intentions on October 16 when he described receipt of a sensitive communication that was actually sent to all the City Council prior to the meeting. Councilmember O'Connell stated that as an elected official, he believes in transparency, and that he is responsible to answer to the people and indicating that his intentions were only share his concerns. Councilmember Brenden stated that in reviewing the videotape of the previous meeting, he did not see any reason to censure and expressed his satisfaction with Councilmember O'Connell`s comments tonight that he will proceed differently in the future, concluding that he will not support any action to censure. City Attorney Gates further stated that an issue like this should be addressed internally, not in public, because if an investigation is required it could be compromised. He also added that many issues are discussed and decided behind closed doors, and details are released to the public following a deliberate process. Attorney Gates stated that a Council meeting is not the appropriate place to discuss a complaint or an investigation when the person complaining, the person they are complaining about, and the process used to follow through is deemed confidential. City Attorney Gates also stated that Councilmembers had written communication from him before the Council meeting stating that he would be recusing himself from the issue and selecting outside attorneys to handle, if necessary. Councilmember O'Connell and City Attorney Gates agreed that further conversation should be off line. Councilmember Semeta stated that as long as Councilmember O'Connell is willing to be very careful in the future to follow protocol and not make disparaging remarks about City departments and indicating that they might be compromised, she would withdraw her name from this item. Councilmember O'Connell replied that he did not disparage anyone, and moving forward he has no issues. Mayor Delgeize stated that she supports Councilmember Semeta's comments and is willing to withdraw this item with no action. Councilmember Peterson stated that he also believes Councilmember O'Connell will follow the rules in the future and he supports withdrawing the item with no action. Council/PFA Regular Minutes November 6, 2017 Page 26 of 27 Councilmember O'Connell stated he felt there was some hypocrisy on the part of Councilmember Peterson, and referred to the adoption of a Council Code of Conduct and a prior Council meeting where Councilmember Peterson had made remarks about him as he left the room. Councilmember Peterson could not recall the incident and stated that he has never tried to bring Councilmember "H" Items forward inappropriately, which is the issue he is addressing now. Councilmember Hardy explained that she believes the Council Code of Conduct was adopted because of the spicy language of a former Council Member years back. She also explained that sometimes Council Members make jokes that are picked up by the microphones, and acknowledged her part in the joke that Councilmember O'Connell made reference to and apologized. Councilmember Hardy continued that the current issue deals with a personnel matter and Councilmembers need to be sensitive to following the law so no one's personnel rights are violated. She further stated that following the Councilmember "H" Item procedure keeps everything within the legal guidelines, and she was pleased to know that Councilmember O'Connell has stated he will follow procedures in the future. COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Semeta reported that the trip to Japan was fantastic, and she will save her comments for a future meeting when they receive the report from the Sister City Association. Councilmember Hardy reported that a recent highlight for her was being Principal at Peterson Elementary School for a day and being able to see their amazing technology classroom. Councilmember Brenden reported spending eight days in Seattle on vacation and there wasn't a drop of rain the whole time. Mayor Pro Tern Posey reported attending the William H. Spurgeon Award event where Jeff Snow of Republic Industries received recognition for his volunteer services, the Boys and Girls Club of Huntington Valley 39tt' Annual Benefit Dinner & Auction, and Sumo Sato's Team Challenge surfing fundraising event. He also shared that there is a great calendar that is being sold for $20 online by photographer Michael Latham that has iconic pictures of Huntington Beach and all proceeds go to Sumo Sato's cancer battle. Councilmember O'Connell reported attending a California State Lands Commission meeting, the William H. Spurgeon Award event, a presentation of the Baha'is of Huntington Beach event, the Boys and Girls Club of Huntington Valley 39th Annual Dinner & Auction, CERT graduation at Rodgers' Senior Center, the O. C. Forum Gubernatorial Candidate Breakfast, the Sumo Sato Team Challenge, and Colette's Children's Home 19-Year celebration for providing supportive services and housing for over 4,000 homeless women and children. Councilmember Peterson reported that he also went on the trip to Japan and will make further comments when the Sister City Association report is presented. He also recognized November 10 as the 242nd Anniversary of Marine excellence. In the interest of transparency, Mayor Pro Tern Posey disclosed that he received a Back to School Hello Kitty mirror and a Tokyo 2020 Olympic lapel pin from Councilmember Peterson from his recent trip to Japan. Council/PFA Regular Minutes November 6, 2017 Page 27 of 27 ADJOURNMENT--12:05 AM, to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, November 20, 2017, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. J City Clerk and ex -off icio 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: 4�� �&hwa,&d_ City' Clerk -Secretary