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HomeMy WebLinkAboutAdopt Resolution No 2015-36 authorizing the City to Levy the Dept ID FN 15-009 Page 1 of 2 Meeting Date 7/20/2015 :.: ; CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/20/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell, Director of Finance SUBJECT: Adopt Resolution No 2015-36 authorizing the City to Levy the Annual Retirement Property Tax For Fiscal Year 2015/16 to pay for pre-1978 Employee Retirement Benefit Levels Statement of Issue The retirement property tax has been levied each year since 1966 The retirement property tax is collected on all real property in the City of Huntington Beach to recover costs related to pre-1978 public employee retirement benefit levels On July 16, 2012, the City Council adopted Chapter 3 07 of the Municipal Code, the Retirement Tax Cap The Retirement Tax Cap states that the tax rate "shall be set at the rate adopted for Fiscal Year 2012/13, which is $0 01500 per $100 of assessed valuation " Financial Impact Pursuant to Chapter 3 07 of the Municipal Code, the Proposed Budget for Fiscal Year 2015/16 reflects the Retirement Tax Cap of $0 01500 per $100 of assessed value As of the most recent audited financial statements, this tax rate resulted in $4 9 million in General Fund revenue in Fiscal Year 2013/14 As this revenue source is included in the Proposed FY 2015/16 Budget, any reductions in the tax rate will likely result in General Fund budget reductions Recommended Action Adopt Resolution No 2015-36, "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2015/2016 to Pay for Pre-1978 Employee Retirement Benefits" of $0 01500 per $100 of assessed valuation The tax rate of $0 01500 would continue the current tax rate included in the Fiscal Year 2014/15 Adopted Budget Alternative Action(s) Do not approve the recommended action and direct staff accordingly Analysis The retirement property tax has been levied since 1966 The retirement property tax is collected on all real property in the City of Huntington Beach to recover costs related to pre-1978 public employee retirement benefit levels that can be legally collected in accordance with court cases, state law, and the City Charter Staff is recommending that the City Council adopt the same assessment rate for Fiscal Year 2015/16 as in Fiscal Year 2014/15 of$0 01500 per $100 of assessed valuation pursuant to Chapter 3 07 of the Municipal Code On July 16, 2012, the City Council voted to permanently cap the tax rate at$0 01500 per$100 of assessed valuation Item 8. - I HB -140- Dept ID FN 15-009 Page 2 of 2 Meeting Date 7/20/2015 Moreover, on June 25, 2012, the Registrar of Voters of the County of Orange certified a measure to be placed on the ballot to repeal the Employee Tax Override in its entirety On November 6, 2012, the ballot measure, known as Measure Z, was defeated by a majority of Huntington Beach voters This tax rate results in an approximately $75 assessment for a property assessed at $500,000 Revenue generated from this property tax helps the City fund CalPERS costs associated with pre- 1978 retirement benefit levels, (i a the estimated value of the costs associated with original benefit formulas) This assessment has not been increased since Fiscal Year 2009/10 and can only be modified by a vote of the electorate as the adoption of the Retirement Tax Cap contained in Chapter 3 07 of the Municipal Code established a permanent cap Please note that based on the most recent CalPERS actuarial valuations, pre-1978 employee retirement benefit costs total $15 6 million As such, the proposed tax rate is recouping only 30 8 percent of eligible retirement costs Due to the County of Orange's timeline for approving the tax rate and the city's budget cycle, the rate must be set before the City Council takes action on its annual budget The recommended assessment rate would maintain approximately $4 9 million in much needed revenue in the General Fund for Fiscal Year 2015/16 Environmental Status Not Applicable Strategic Plan Goal Strengthen Economic and Financial Sustainability Attachment(s) 1 Resolution No 2015-36 "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2015/2016 to Pay for Pre-1978 Employee Retirement Benefits" 2 Ordinance No 3954 "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Adding Chapter 3 07 Relating to Capping the Retirement Property Tax at Fiscal Year 2012/13 Rates" adopted August 20, 2012 HB -141- Item 8. - 2 Al`TACHM 1 u RESOLUTION NO. 2 015-3 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH LEVYING A RETIREMENT PROPERTY TAX FOR FISCAL YEAR 2015/2016 TO PAY FOR PRE-1978 EMPLOYEE RETIREMENT BENEFITS WHEREAS, since 1948, the City has provided for employee pensions through a contract with the California Public Employees Retirement System (CalPERS). Pursuant to the 1966, 1978 and 2010 Charters, the voters of the City authorized the City Council to pay for the cost of employee pensions through a separate retirement property tax. Section 607(b)(2) of the 2010 Charter provides that the City may impose a retirement tax "sufficient to meet all obligations of the City for the retirement system in which the City participates;" and Proposition 13 was added to the California Constitution in 1978. It limits the local property tax to 1% of assessed value, except that the City may levy an override tax in excess of 1% to pay"any indebtedness approved by the voters prior to July 1, 1978" (Cal. Const. Art. 13A, §1(b)); and In the case entitled Carman v. 41vord, 31 Cal.3d 318 (1982), the California Supreme Court determined that under Proposition 13, an override property tax in excess of 1% of assessed value may be levied to pay for employee pension benefits the voters approved prior to 1978 Consequently, after Proposition 13, the Huntington Beach City Council continued to levy an override tax to pay for employee pensions. Since 1983-84, Revenue and Taxation Code Section 96.31(a)(4) has limited the City to levying a maximum override tax of $0 04930 per $100 of assessed value to pay for its retirement system; and In 2003, the Court of Appeal in Howard Jarvis Taxpayers Assn v County of Orange (2003) 110 Cal.AppAth 1375 held that the City may levy a separate property tax to pay for retirement benefits for all retired, current, and future city employees contracted for prior to July 1, 1978, but not enhancements to retirement benefits contracted for after July 1, 1978; and Prior to July 1, 1978, the City entered into collective bargaining agreements with employee associations representing its safety employees providing that, effective July 1, 1978, they would be entitled to a CalPERS retirement benefit known as "2% @ 50." Subsequently, on June 30, 1999, pursuant to collective bargaining agreements the City had entered into with its safety employees, the City provided its safety employees with the CalPERS retirement benefit known as 3% @ 50. Consequently, it is necessary to allocate the employer contribution to CalPERS for safety retirement between 2% @ 50 and 3% @ 50, because only the employer contribution for 2% @ 50 may be paid through the override property tax, and The City has received a report from John Bartel of Bartel Associates, a professional actuary experienced in pension calculations, entitled, "City of Huntington Beach CalPERS Actuarial Issues-Cost of 3% @ 50," dated August 10, 2004. The Report identified the additional cost of 3% @ 50 as what CalPERS refers to as the "normal cost" of the benefit, which represents the present value of future benefits employees earned during the current year. Under this approach, the incremental cost of 3% @ 50 is 4 6% of safety payroll, and the remainder of the employer contribution represents the cost of 2% @ 50, and 15-4816/122948 1 Resolution No . 2015-36 In April 2004, then Assemblyman Harman formally asked the Attorney General regarding the correct method of allocating the employer contribution to CalPERS between its pre-1978 and post-1978 components In his February 7, 2005 Opinion (Opinion No. 04-413), the Attorney General opined that "any reasonable accounting method may be used for purposes of determining which costs are not subject to the 1% property tax limitation of the Constitution;" and The City Council has determined that the allocation approach presented in the Bartel Report is a reasonable accounting method for determining which costs are not subject to the 1% property tax limitation of the Constitution; and For 2015/2016, CalPERS is requiring the City to contribute 42 969% of safety employee payroll as the City's employer's contribution. In order to set the tax override, the City may subtract the 4.6% normal cost of 3% @ 50 from the 42.969% to set the override tax at the equivalent of 38 369% of safety employee payroll. The cost to the City of 34.451% of safety employee payroll for 2015/2016 will be $15,670,538 and pursuant to Proposition 13, the City could have set the override tax for 2015/2016 at $0.04906 per $100 of assessed value; and The City Council added Chapter 3.07 to the Municipal Code which provides that the maximum retirement override tax rate for 2015/2016 shall be set at the rate adopted for Fiscal Year 2012/13, which is $0.01500 per $100 of assessed valuation, which amount is less than the otherwise permitted retirement override tax of$0.04906 per $100 of assessed value. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that a retirement property tax levy of Zero and 0.01500/100th Dollars ($0.01500)per$100 of assessed value shall be levied for employee retirement costs for Fiscal Year 2015/2016. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2 0 t h day of 1 2015. r REVIE /10 // APPROVED: INITI TED AND AP PRO D. y� -C��11 �Cl Cit ag r Finance Director APPROVED FORM: ity torney '\NY ' 7-/ -IS 15-4816/122948 2 Res. No. 2015-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 20, 2015 by the following vote AYES: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson NOES: None ABSENT: O'Connell ABSTAIN: None City rk and ex-officio Ferk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 ORDINANCE NO -1954 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING CHAPTER 3 07 RELATING TO CAPPING THE RETIREMENT PROPERTY TAX AT FISCAL YEAR 2012/13 RATES The City Council of the City of Huntington Beach does hereby ordain as follows SECTION 1. The Huntington Beach Municipal Code is hereby amended by adding new Chapter 3 07 thereto, to read as follows 3.07 Retirement Tax Cap. The tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year as provided in Huntington Beach Charter Section 607 (b) 2, shall be set at the rate adopted for Fiscal Year 2012/13,which is $0 01500 per $100 of assessed valuation SECTION 2. In the event this ordinance is held invalid by a court of competent jurisdiction,the tax shall automatically be reinstated as it existed prior to adoption of this ordinance SECTION 3. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 20th day of q„�„tt , 2012. Mayor ATTEST. APPROVED AS TO FORM. QM20— City Clerk City Attorney rnv- INITIAT VIEWED AND APPROVED: ty anager 12-3407/81687 Item 8. - 5 ATTA HB -144-NT 2 Ord. No. 3954 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing ordinance was read to said City Council at a regular meeting thereof held on July 16,2012, and was again read to said City Council at a regular meeting thereof held on August 20,2012, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council AYES: Shaw, Carchio, Bohr, Boardman NOES: Harper, Hansen ABSENT: Dwyer ABSTAIN: None I,Joan L Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on August 30,2012 In accordance with the City Charter of said City Joan L Flynn,Ci1y Clerk Cit lerk and ex-officio CVffrk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California ATTAHB -145-NT 2 Item 8. - 6 C...1TY OF HUNTINGTON BEACH Finance Department Lori Ann Farrell Director of Finance Via Email Frank DaviesCaD_ac ocgov corn Original Via U.S. Priority Mail July 28, 2015 Frank Davies, Auditor-Controller County of Orange— Property Tax Unit P O. Box 567 Santa Ana, CA 92702-0567 SUBJECT: CITY OF HUNTINGTON BEACH TAX RATE— FISCAL YEAR 2015116 Dear Mr Davies On July 20, 2015, the City of Huntington Beach adopted the Fiscal Year 2015/2016 Tax Rate by Resolution Number 2015-36, which levies a retirement property tax for Fiscal Year 2015/2016 to pay for pre-1978 employee retirement benefits Enclosed are the executed Resolution and staff report Please note this rate has not changed from Fiscal Year 2014/2015 Please continue to incorporate the retirement tax levy of Zero and 0.01500/1001h Dollars ($0 01500) per $100 of assessed value for the City of Huntington Beach If you have any questions or need additional information, please do not hesitate to contact my office Sinc rely90'4-t4 Lori Ann Farrell Director of Finance Enclosures, 1) City of Huntington Beach Resolution Number 2015-36 2) Request for City Council Action Agenda dated July 20, 2015, Item 8 3) Action Agenda, Item 8 cc- Fred A Wilson, City Manager Joan Flynn, City Clerk Carol Molina-Espinoza, Finance Manager— Budget LAF/MKUjI 2000 Main Street, California 92648-2702 0 Phone 714-536-5630 Fax 714-374-5365 www.huntingtonbeachca.gov RESOLUTION NO. 2 015-3 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH LEVYING A RETIREMENT PROPERTY TAX FOR FISCAL YEAR 2015/2016 TO PAY FOR PRE-1978 EMPLOYEE RETIREMENT BENEFITS WHEREAS, since 1948, the City has provided for employee pensions through a contract with the California Public Employees Retirement System (CalPERS). Pursuant to the 1966, 1978 and 2010 Charters, the voters of the City authorized the City Council to pay for the cost of employee pensions through a separate retirement property tax. Section 607(b)(2) of the 2010 Charter provides that the City may impose a retirement tax "sufficient to meet all obligations of the City for the retirement system in which the City participates;"and Proposition 13 was added to the California Constitution in 1978. It limits the local property tax to 1% of assessed value, except that the City may levy an override tax in excess of 1% to pay"any indebtedness approved by the voters prior to July 1, 1978" (Cal. Const. Art. 13A, §1(b)); and In the case entitled Carman v. Alvord, 31 Cal.3d 318 (1982), the California Supreme Court determined that under Proposition 13, an override property tax in excess of 1% of assessed value may be levied to pay for employee pension benefits the voters approved prior to 1978 Consequently, after Proposition 13, the Huntington Beach City Council continued to levy an override tax to pay for employee pensions. Since 1983-84, Revenue and Taxation Code Section 96.31(a)(4) has limited the City to levying a maximum override tax of $0 04930 per $100 of assessed value to pay for its retirement system; and In 2003,the Court of Appeal in Howard Jarvis Taxpayers Assn v County of Orange (2003) 110 Cal.App.4th 1375 held that the City may levy a separate property tax to pay for retirement benefits for all retired, current, and future city employees contracted for prior to July 1, 1978, but not enhancements to retirement benefits contracted for after July 1, 1978; and Prior to July 1, 1978, the City entered into collective bargaining agreements with employee associations representing its safety employees providing that, effective July 1, 1978, they would be entitled to a CalPERS retirement benefit known as "2% @ 50." Subsequently, on June 30, 1999, pursuant to collective bargaining agreements the City had entered into with its safety employees, the City provided its safety employees with the CalPERS retirement benefit known as 3% @ 50. Consequently, it is necessary to allocate the employer contribution to Ca1PERS for safety retirement between 2% @ 50 and 3% @ 50, because only the employer contribution for 2% @ 50 may be paid through the override property tax, and The City has received a report from John Bartel of Bartel Associates, a professional actuary experienced in pension calculations, entitled, "City of Huntington Beach CalPERS Actuarial Issues--Cost of 3% @ 50," dated August 10, 2004. The Report identified the additional cost of 3% @ 50 as what CalPERS refers to as the "normal cost" of the benefit, which represents the present value of future benefits employees earned during the current year. Under this approach, the incremental cost of 3% @ 50 is 4 6% of safety payroll, and the remainder of the employer contribution represents the cost of 2% @ 50, and 15-4816/122948 1 Attachment 1 In April 2004, then Assemblyman Harman formally asked the Attorney General regarding the correct method of allocating the employer contribution to CaIPERS between its pre-1978 and post-1978 components In his February 7, 2005 Opinion (Opinion No. 04-413), the Attorney General opined that "any reasonable accounting method may be used for purposes of determining which costs are not subject to the 1% property tax limitation of the Constitution;" and The City Council has determined that the allocation approach presented in the Bartel Report is a reasonable accounting method for determining which costs are not subject to the 1% property tax limitation of the Constitution; and For 2015/2016, Ca1PERS is requiring the City to contribute 42 969% of safety employee payroll as the City's employer's contribution. In order to set the tax override, the City may subtract the 4.6% normal cost of 3% @ 50 from the 42.969% to set the override tax at the equivalent of 38 369% of safety employee payroll. The cost to the City of 34.451% of safety employee payroll for 2015/2016 will be $15,670,538 and pursuant to Proposition 13, the City could have set the override tax for 2015/2016 at$0.04906 per$100 of assessed value; and The City Council added Chapter 3.07 to the Municipal Code which provides that the maximum retirement override tax rate for 2015/2016 shall be set at the rate adopted for Fiscal Year 2012/13, which is $0.01500 per $100 of assessed valuation, which amount is less than the otherwise permitted retirement override tax of$0,04906 per$100 of assessed value. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that a retirement property tax levy of Zero and 0.01500/100th Dollars ($0.01500)per$100 of assessed value shall be levied for employee retirement costs for Fiscal Year 2015/2016. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2 0 t h day of 1 2015. r- REVIE APPROVED: M7ot, D ANDD APPRP, � D. -6i'll" Cival#r Finance Director APPROVED AVMI FORM: rty orney ON ` 7- 15-4816/122948 2 Attachment 1 Res. No. 2015-36 STATE OF CALIFORNIA COUNTY OF ORANGE } ss: CITY OF HUNTINGTON BEACH } I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmattve vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 20, 2015 by the following vote AYES: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson NOES: None ABSENT: O'Connell ABSTAIN: None City rk and ex-officio Merk of the City Council of the City of Huntington Beach, California Attachment 1 f pyry Dept ID FN 15-009 Page 1 of 2 Meeting Date 7/20/2015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 7/20/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell, Director of Finance SUBJECT: Adopt Resolution No 2015-36 authorizing the City to Levy the Annual Retirement Property Tax For Fiscal Year 2015/16 to pay for pre-1978 Employee Retirement Benefit Levels Statement of Issue The retirement property tax has been levied each year since 1966 The retirement property tax is collected on all real property in the City of Huntington Beach to recover costs related to pre-1978 public employee retirement benefit levels On July 16, 2012, the City Council adopted Chapter 3 07 of the Municipal Code, the Retirement Tax Cap The Retirement Tax Cap states that the tax rate "shall be set at the rate adopted for Fiscal Year 2012/13, which is $0 01500 per $100 of assessed valuation " Financial Impact Pursuant to Chapter 3 07 of the Municipal Code, the Proposed Budget for Fiscal Year 2015/16 reflects the Retirement Tax Cap of $0 01500 per $100 of assessed value As of the most recent audited financial statements, this tax rate resulted in $4 9 million in General Fund revenue in Fiscal Year 2013114 As this revenue source is included in the Proposed FY 2015/16 Budget, any reductions in the tax rate will likely result in General Fund budget reductions Recommended Action Adopt Resolution No 2015-36, "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2015/2016 to Pay for Pre-1978 Employee Retirement Benefits" of $0 01500 per $100 of assessed valuation The tax rate of $0 01500 would continue the current tax rate included in the Fiscal Year 2014115 Adopted Budget Alternative Action(s) Do not approve the recommended action and direct staff accordingly Analysis The retirement property tax has been levied since 1966 The retirement property tax is collected on all real property in the City of Huntington Beach to recover costs related to pre-1978 public employee retirement benefit levels that can be legally collected in accordance with court cases, state law, and the City Charter Staff is recommending that the City Council adopt the same assessment rate for Fiscal Year 2015/16 as in Fiscal Year 2014/15 of$0 01500 per $100 of assessed valuation pursuant to Chapter 3 07 of the Municipal Code On July 16, 2012, the City Council voted to permanently cap the tax rate at$0 01500 per$100 of assessed valuation ftem 8. - 1 Attg0r nt 2 Dept I D FN 15-009 Page 2 of 2 Meeting Date 7/20/2015 Moreover, on June 25, 2012, the Registrar of Voters of the County of Orange certified a measure to be placed on the ballot to repeal the Employee Tax Override in Its entirety On November 6, 2012, the ballot measure, known as Measure Z, was defeated by a majority of Huntington Beach voters This tax rate results in an approximately $75 assessment for a property assessed at $500,000 Revenue generated from this property tax helps the City fund CaIPERS costs associated with pre- 1978 retirement benefit levels, (i a the estimated value of the costs associated with original benefit formulas) This assessment has not been increased since Fiscal Year 2009/10 and can only be modified by a vote of the electorate as the adoption of the Retirement Tax Cap contained in Chapter 3 07 of the Municipal Code established a permanent cap Please note that based on the most recent CalPERS actuarial valuations, pre-1978 employee retirement benefit costs total $15 6 million As such, the proposed tax rate is recouping only 30 8 percent of eligible retirement costs Due to the County of Orange's timeline for approving the tax rate and the city's budget cycle, the rate must be set before the City Council takes action on its annual budget The recommended assessment rate would maintain approximately $4 9 million in much needed revenue in the General Fund for Fiscal Year 2015/16 Environmental Status Not Applicable Strategic Plan Goal Strengthen Economic and Financial Sustainability Attachment(s) 1 Resolution No 2015-36 "A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2015/2016 to Pay for Pre-1978 Employee Retirement Benefits" 2 Ordinance No 3954 "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Adding Chapter 3 07 Relating to Capping the Retirement Property Tax at Fiscal Year 2012/13 Rates" adopted August 20, 2012 xs -141- Item 8. - Attachment 2 EFEAT TACH ME NT #1 AtlacM1ment4 RES OLUTION NO. 2 015-3 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH LEVYING A RETIREMENT PROPERTY TAX FOR FISCAL YEAR 2015/2016 TO PAY FOR PRE-1978 EMPLOYEE RETIREMENT BENEFITS WHEREAS, since 1948, the City has provided for employee pensions through a contract with the California Public Employees Retirement System (CalPERS). Pursuant to the 1966, 1978 and 2010 Charters, the voters of the City authorized the City Council to pay for the cost of employee pensions through a separate retirement property tax. Section 607(b)(2) of the 2010 Charter provides that the City may impose a retirement tax "sufficient to meet all obligations of the City for the retirement system in which the City participates;" and Proposition 13 was added to the California Constitution in 1978. It limits the local property tax to 1% of assessed value, except that the City may levy an override tax in excess of 1% to pay"any indebtedness approved by the voters prior to July 1, 1978" (Cal. Const. Art. 13 A, §1(b)); and In the case entitled Carman v. Alvord, 31 Cal.3d 318 (1982), the California Supreme Court determined that under Proposition 13, an override property tax in excess of 1% of assessed value may be levied to pay for employee pension benefits the voters approved prior to 1978 Consequently, after Proposition 13, the Huntington Beach City Council continued to levy an override tax to pay for employee pensions. Since 1983-84, Revenue and Taxation Code Section 96.31(a)(4) has limited the City to levying a maximum override tax of $0 04930 per $100 of assessed value to pay for its retirement system; and In 2003,the Court of Appeal in Howard Jarvis Taxpayers Assn v County of Orange (2003) 110 Cal.App.4th 1375 held that the City may levy a separate property tax to pay for retirement benefits for all retired, current, and future city employees contracted for prior to July 1, 1978, but not enhancements to retirement benefits contracted for after July 1, 1978; and Prior to July 1, 1978, the City entered into collective bargaining agreements with employee associations representing its safety employees providing that, effective July 1, 1978, they would be entitled to a CalPERS retirement benefit known as "2% @ 50." Subsequently, on June 30, 1999, pursuant to collective bargaining agreements the City had entered into with its safety employees, the City provided its safety employees with the CalPERS retirement benefit known as 3% @ 50. Consequently, it is necessary to allocate the employer contribution to CalPERS for safety retirement between 2% @ 50 and 3% @ 50, because only the employer contribution for 2% @ 50 may be paid through the override property tax, and The City has received a report from John Bartel of Bartel Associates, a professional actuary experienced in pension calculations, entitled, "City of Huntington Beach CalPERS Actuarial Issues-Cost of 3% @ 50," dated August 10, 2004. The Report identified the additional cost of 3% @ 50 as what CalPERS refers to as the "normal cost" of the benefit, which represents the present value of future benefits employees earned during the current year. Under this approach, the incremental cost of 3% @ 50 is 4 6% of safety payroll, and the remainder of the employer contribution represents the cost of 2%@ 50, and 15-4816/122948 Attachment 2 ATTACHMENT #2 AVecM1ment3 ORDINANCE NO 3954 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING CHAPTER 3 07 RELATING TO CAPPING THE RETIREMENT PROPERTY TAX AT FISCAL YEAR 2012/13 RATES The City Council of the City of Huntington Beach does hereby ordain as follows SECTION 1 The Huntington Beach Municipal Code is hereby amended by adding new Chapter 3 07 thereto, to read as follows 3.07 Retirement Tax Can. The tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year as provided in Huntington Beach Charter Section 607(b) 2, shall be set at the rate adopted for Fiscal Year 2012/13,which is $0 01500 per$100 of assessed valuation SECTION 2. In the event this ordinance is held invalid by a court of competent jurisdiction,the tax shall automatically be reinstated as it existed prior to adoption of this ordinance SECTION 3. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the Loth day of August ,2012. Mayor ATTEST. APPROVED AS TO FORM. City Clerk t City Attorney rnv- 7-10-tom INITIA VIEWED AND APPROVED: ty anager 12 3407/81687 Item 8. - 5 A+' VTOV 2 Ord. No. 3954 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN,the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven,that the foregoing ordinance was read to said City Council at a regular meeting thereof held on July 16,2012,and was again read to said City Council at a regular meeting thereof held on August 20,2012, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council AYES: Shaw, Carchio,Bohr, Boardman NOES: Harper, Hansen ABSENT: Dwyer ABSTAIN: None 1,Joan L Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Cleric of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on August 30,2012 _ (- j4s-w) In accordance with the City Charter of said City //�J Joan L Flypn,Cily Clerk Ci lerk and ex-officio rk 1 senior Deputy Cg clerk of the City Council of the City of Huntington Beach, California A494011PArM 2 Item 8. - f a ..,u V.a.u V 1 V as 1 i V • L V 1 J J V In April 2004, then Assemblyman Harman formally asked the Attorney General regarding the correct method of allocating the employer contribution to CalPERS between its pre-1978 and post-1978 components In his February 7, 2005 Opinion (Opinion No. 04-413), the Attorney General opined that "any reasonable accounting method may be used for purposes of determining which costs are not subject to the 1%property tax limitation of the Constitution;" and The City Council has determined that the allocation approach presented in the Bartel Report is a reasonable accounting method for determining which costs are not subject to the 1% property tax limitation of the Constitution; and For 2015/2016, CalPERS is requiring the City to contribute 42 969% of safety employee payroll as the City's employer's contribution. In order to set the tax override, the City may subtract the 4.6% normal cost of 3% @ 50 from the 42.969% to set the override tax at the equivalent of 38 369% of safety employee payroll. The cost to the City of 34.451% of safety employee payroll for 2015/2016 will be $15,670,538 and pursuant to Proposition 13, the City could have set the override tax for 2015/2016 at$0.04906 per$100 of assessed value; and The City Council added Chapter 3.07 to the Municipal Code which provides that the maximum retirement override tax rate for 2015/2016 shall be set at the rate adopted for Fiscal Year 2012/13, which is $0.01500 per$100 of assessed valuation, which amount is less than the otherwise permitted retirement override tax of$0.04906 per$100 of assessed value. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that a retirement property tax levy of Zero and 0.015001100th Dollars ($0.01500)per $100 of assessed value shall be levied for employee retirement costs for Fiscal Year 2015/2016. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2 0 t h day of 1 2015. r- REVIE APPROVED: INIT TED AND APPRO D. Ci ag r Finance Director APPROVED FORM: ity orney 7- 15-481&122948 2 Attachment 2 Res. No. 2015-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 20, 2015 by the follow►ng vote AYES: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson NOES: None ABSENT: O'Connell ABSTAIN: None City rk and ex-officia Ferk of the City Council of the City of Huntington Beach, California Attachment 2 ***REVISED*** MAYOR AND Monday, July 20, 2015 CITY COUNCIL CITY COUNCILIPUBLIC FINANCING FRED A.WILSON AUTHORITY JILL HARDY City Manager Mayor MICHAEL E.GATES CITY OF HUNTINGTON BEACH JIM KATAPODIS ERIK PETERSON City Attorney Mayor Pro Tern Councilmember JOAN L FLYNN No Study Session BARBARA DELGLEIZE MIKE POSEY City Clerk 5:00 PM - Regular Meeting Counalmember Councilmember ALISA CUTCHEN Council Chambers - 2000 Main Street WILLIAM O'CONNELL DAVE SULLIVAN City Treasurer Huntington Beach, CA 92648 Councilmember Councilmember http://www.huntingtonbeachca.gov Based on the lack of a Study Session and time needed to cover the Closed Session items, the meeting will be called to order at 5:00 PM instead of 4:00 PM 5:00 PM - Council Chambers - Closed Session 6:00 PM - Council Chambers - Regular Business Meeting CALL TO ORDER— 5:00 PM Pursuant to Resolution No. 2001-54, Councilmember O'Connell has requested permission to be absent ROLL CALL Present: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson Absent: O'Connell ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) - None PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) - None RECESS TO CLOSED SESSION —5:02 PM Mayor Hardy to Announce: Pursuant to Government Code § 54957 6, the City Council shall recess into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following Fire Management Association (FMA), Huntington Beach Firefighters' Association (HBFA), Huntington Beach Municipal Employees' Association (MEA), Management Employee's Organization (MEO), Huntington Beach Police Officers' Association (POA), Police Management Association (PMA), Marine Safety Management Association (MSMA), and/or Surf City Lifeguard Employees' Association (SCLEA). -1- Clty Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3 CLOSED SESSION 1. Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Roger Mielke v. City of Huntington Beach, et al., Orange County Superior Court Case No. 30-2014-00729395. 2. Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Fire Management Association (FMA), Huntington Beach Firefighters' Association (HBFA), Huntington Beach Municipal Employees' Association (MEA), Management Employee's Organization (MEO), Huntington Beach Police Officers' Association (POA), Police Management Association (PMA), Marine Safety Management Association (MSMA), andlor Surf City Lifeguard Employees' Association (SCLEA). 6:00 PM — COUNCIL CHAMBERS RECONVENE CITY COUNCIUPUBLIC FINANCING AUTHORITY MEETING 6:09 Plat CLOSED SESSION REPORT BY CITY ATTORNEY - None Pursuant to Resolution No. 2001-54, Councilmember O'Connell has requested permission to be absent ROLL CALL Present: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson Absent: O'Connell PLEDGE OF ALLEGIANCE INVOCATION - To be led by Charles "Bud" Lung of the First Church Christ Science 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 AWARDS AND PRESENTATIONS Mayor Hardy to call on Victoria Alberty, Pat Bril and Gisela Campagne to present the Adoptable Pet of the Month. Mayor Hardy to call on Fire Chief Patrick McIntosh to present the Mayor's Award to the Fire Department's Administrative Secretary Laney Belk. -2- City Council/PFA Action Agenda—Monday, Jul 20 2015 AfYACHMENT 3 Mayor Hardy to call on Chief Tonya Hoover, California State Fire Marshal, who will present Fire Chief Patrick McIntosh his State Fire Chief Certification. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) #1, #18 (8),#19, #20, #21 (7) PUBLIC COMMENTS (3 Minute Time Limit) 96 Speakers COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS AND ALL AB 1234 DISCLOSURE REPORTING Posey, Katapodis, Sullivan, Delgleize, reported Posey announced his appointment of Laura Romero to the Finance Commission Hardy announced her appointments of Mark Bixby to the Citizens'infrastructure Advisory Board, and Ken Small to the Finance Commission CITY MANAGER'S REPORT City Manager Fred Wilson provided information related to the fuel dock in Huntington Harbour. 1. The Community Services Department will give an overview of their mission and various functions CONSENT CALENDAR 2. Approve and adopt minutes Recommended Action: Review and approve the City Council special meeting minutes dated June 29, 2015, the City Council/Public Financing Authority regular meeting minutes dated July 6, 2015, and the City Council special meeting minutes dated July 13, 2015, as written and on file in the office of the City Clerk Approved 6-0-9 (O'Connell-Absent) 3. Receive and file City Clerk's Quarterly listing of Professional Service Contracts filed in the City Clerk's office for contracts executed between January 1, 2015 and March 31, 2015 Recommended Action: Receive and file the "List of Professional Service Contracts Approved by Department Heads Pursuant to Huntington Beach Municipal Code Chapter 3 03 and Submitted to the Office of the City Clerk for the Period January 1, 2015 through March 31, 2015 " Approved 6-0-9 (O'Connell-Absent) 4. Adopt Resolution No. 2015-32 confirming reports of cost for Weed Abatement on private property within the City —2015 Season; and, -3- City Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3 approve and authorize execution of an agreement with the County of Orange for collection of special taxes, fees, charges and assessments Recommended Action: A) Adopt Resolution No 2015-32,"A Resolution Of The City Council Of The City Of Huntington Beach Confirming The Report Of The Public Works Director Regarding The Cost For Weed Abatement On Private Property Within The City For The 2015 Season," and, B) Direct that all charges listed thereon be certified to the 2015/16 Orange County Property Tax Roll, and, C) Authorize the Mayor and City Clerk to execute the "Agreement For Collection of Special Taxes, Fees, Charges and Assessments " Approved 6-0-1 (O'Connell-Absent) 5. Approve Annual Report and Fiscal Year 2015-2016 Huntington Beach Downtown Business Improvement District Budget and adopt Resolution No. 2015-33 declaring the City's intention to levy an annual assessment for Fiscal Year 2015-2016 within the Downtown Huntington Beach Business Improvement District (HBDBID); and schedule a public hearing for August 17, 2015 Recommended Action: A) Adopt Resolution No 2015-33, "A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment for Fiscal Year 2015-2016 Within the Huntington Beach Downtown Business Improvement District," including Exhibit A—Huntington Beach Downtown Business Improvement District 2014-2015 Annual Report, Exhibit B — Assessment Schedule, Boundary Map, and List of Businesses to be Assessed, and Exhibit C —Types of Improvements and Activities to be funded by the levy of assessments on businesses within the Business Improvement Area, and, B) Direct the City Clerk to schedule a public hearing to be held on August 17, 2015 and send copies of the Resolution of intention, including the BID Boundary Map and assessment formula to each business to be assessed, and publish same in a newspaper of general circulation Approved 6-0-1 (O'Connell-Absent) 6. Approve Annual Report and Fiscal Year 2015-2016 Huntington Beach Auto Dealers Business Improvement District Budget and adopt Resolution No. 2015-34 declaring the City's intention to levy an annual assessment for Fiscal Year 2015-2016 within the Huntington Beach Auto Dealers Business Improvement District; and schedule a public hearing for August 17, 2015 Recommended Action: A) Adopt City Council Resolution No. 2015-34, "A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment Within the Huntington Beach Auto Dealers Association Business Improvement District for Fiscal Year 2015-2016," including Exhibit A —Auto -4- City Council/PFA Action Agenda—Monday, Jul 20 2015 A ACHMENT 3 Dealers BID Annual Report and Exhibit B—Auto Dealers BID Member List, and, B) Direct the City Clerk to schedule a public hearing to be held on August 17, 2015, and send copies of the Resolution of Intention and assessment formula to each business to be assessed and publish the same in a newspaper of general circulation. Approved 6-0-1 (O'Connell-Absent) 7. Adopt Resolution No. 2015-35 approving the Certification of Special Assessments for Delinquent Civil Fines for Municipal Code Violations; and, approve and authorize execution of an Agreement with the County for Collection of Special Taxes, Fees, Charges and Assessments Recommended Action: A) Adopt Resolution No 2015-35, "A Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments For Collecting Delinquent Civil Fines For Nuisance Violations Of The Municipal Code," and, B) Approve and authorize the Mayor and City Clerk to execute the "Agreement for Collection of Special Taxes, Fees, Charges and Assessments" with the County of Orange Approved 6-0-9 (O'Connell-Absent) 8. Adopt�R'esolutio �No. 2015�-3 authorizing the,,, Ity4d Levy th'b Anf-dal Retirement Property Tax For lFisca Yeii 2016116 to pay for pie;-1 78,' Employee,R,etirement"Benefit Levels a t4co' Mimended Action: Ado opt Resofutionv�N o �0157 "A ResoIgtaon of t6 City Cou�c of e' '�of - - - Huntingt an''Beach Levying a Retiribmen Pi perWgaX for Fis4l,Ye r_20(1512o 1, to Pay for_Prd=1978.Em ployee Rptiremprit Bonus!"',of,$0.9'i-500 p4F 'i 0�of a assessed valuation 'The to cfrate'„cif$0.0'1500 w ould rontincie the current tax rate include in tt e.lria l�t`a 014115�Wopted I3Uc6 - pprav-ed 6-t--t(O'Connelf-Absent) 9. Table to a date uncertain. Request to add one additional permanent Communii Services and Recreation Specialist position to the Community Services Table of Organization; authorize the appropriation of$91,000; and increase the current Sunset Vista RV Campground facility daily rate by $10.00 per space by adopting Resolution No. 2015-37 (Supplemental Fee Resolution No. 7) Recommended Action: A) AppFeve the .nerenne of ene (1) Gemmunity Senl!e`ec; and ReAeeatfen e PaFklnn/('r+mninn r+nee. Rt 10046202 as paFt of the CV 15114' budget, ei and, n A Resolution ef the City GewReil of the Gl" Huntington Beach Amending Resolution No 2009 33 Whie.h Established A -5- City Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3 SGhed ile FGF GhaFge s Of The Gemm mitt Sennnes i'lepaFtment FeF FaGllity spaGe Substitute Motion: Table to a date uncertain and have staff come back with other options for staffing and use of additional funds, if camping fee is increased Approved 5-1-1 (Hardy-No; O'Connell-Absent) 10. Award and authorize execution of a Construction Contract in the amount of$531,395.00 to United Engineering & Construction, Inc., for the Water Well No. 5 Pumping Facility Project, CC-1467 Recommended Action: A) Accept the lowest, responsive and responsible bid submitted by United Engineering & Construction, Inc , in the amount of$531,395 00, and, B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney Approved 6-0-1 (O'Connell-Absent) 11. Approve and authorize execution of three Professional Services Contracts for On-Call Civil (Ocean) Engineering Services with Anchor QEA, LLC., Moffatt & Nichol, and Noble Consultants, Inc., each in the amount of $360,000 Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract Between The City of Huntington Beach and Anchor QEA, LLC for On-Call Civil Engineering Services" in the amount of$350,000; and, B) Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract Between The City of Huntington Beach and Moffatt & Nichol for On-Call Civil Engineering Services" in the amount of$350,000, and, C) Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract Between The City of Huntington Beach and Noble Consultants, Inc for On-Call Civil Engineering Services" in the amount of$350,000 Approved 6-0-1 (O'Connell-Absent) 12. Approve and authorize execution of Professional Services Contracts for On-Call Civil (Architectural) Engineering Services with IDS Group, Inc. in the amount of$260,000, Westberg + White, Inc. in the amount of$250,000, and AECOM Technical Services, Inc. in the amount of$660,000 Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract Between The City of Huntington Beach and IDS Group, Inc for On-Call Civil Engineering Design Services" in the amount of$250,000; and, B) Approve and authorize the Mayor and City Clerk to execute "Professional -6- City Council/PFA Action Agenda—Monday, Jul 0 2015 ENT 3 Services Contract Between The City of Huntington Beach and Westberg + White, Inc. for On-Call Civil Engineering Design Services" in the amount of $250,000, and, C) Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract Between The City of Huntington Beach and AECOM Technical Services, Inc for On-Call Civil Engineering Services" in the amount of$650,000 Approved 6- )'O'Conne11-Absent) 13. Approve and authorize execution of assignment of the Professional Services Contract with Mayer Hoffman McCann P.C. for Transient Occupancy Tax and Lease Concession Audit Services to Davis Farr LLP Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Consent to Assignment of Audit Agreement" between the City of Huntington Beach and Mayer Hoffman McCann P C for Transient Occupancy Tax and Lease Concession Audit Services Approved 6-0-1 (O'Connell-Absent) 14. Approve and authorize execution of a Lease Agreement with the California State Lands Commission for the Bolsa Chica Water Main Extensions Project, CC-1389, located in the Bolsa Chica Ecological Reserve Recommended Action: Approve and authorize the Mayor and City Clerk to execute "Lease No PRC (W 26784)" agreement between the City of Huntington Beach and the California State Lands Commission for the construction, use, and maintenance of two 8- inch diameter water pipelines, located in the Bolsa Chica Ecological Reserve Approved 6-0-1 (O'Connell-Absent) 15. Adopt Ordinance No. 4061 repealing Chapter 17.58 of the Huntington Beach Municipal Code Sections relating to Hazardous Materials, and Ordinance No. 4062 repealing Sections 17.56.600 and 17.56.610 of the Huntington Beach Municipal Code relating to Hazardous Materials and amending Section 17.56.220 of Huntington Beach Municipal Code titled Where Required Approved for introduction July 6, 2015 (Vote: 7-0) Recommended Action: A) Adopt Ordinance No. 4061, "An Ordinance of the City of Huntington Beach Repealing Chapter 17.58 of the Huntington Beach Municipal Code Relating to Hazardous Materials," and, B) Adopt Ordinance No 4062, "An Ordinance of the City of Huntington Beach Repealing Sections 17.56 600 and 17.56 610 of the Huntington Beach Municipal Code Relating to Hazardous Materials and Amending Section 17 56 220 of the Huntington Beach Municipal Code Titled Where Required " Approved 6-0-1 (O'Connell-Absent) -7- City Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3 16. Adopt Ordinance No. 4063 amending Chapter 14.18 of the Huntington Beach Municipal Code relating to the Water Management Program by making the amendments of Emergency Ordinance 4060 permanent Approved for introduction July 6, 2015 (Vote: 5-2 Posey, Peterson - No) Recommended Action: Adopt Ordinance No 4063, "An Ordinance of the City of Huntington Beach Amending Chapter 14 18 of the Huntington Beach Municipal Code Relating to Water Management Program " Approved 4-2-1 (Posey, Peterson-No; O'Connell-Absent) 17. Adopt Ordinance No. 4064 amending Huntington Beach Municipal Code (HBMC) Chapter 10.12 relating to speed limits on S8 street segments Approved for introduction July 6, 2015 (Vote: 7-0) Recommended Action: Adopt Ordinance No 4064, "An Ordinance of the City of Huntington Beach Amending Section 10 12 080 of the Huntington Beach Municipal Code Relating to Speed Limits " Approved 6-0-1 (O'Connell-Absent) PUBLIC HEARING 18. Continued (Public Hearing Closed) from July 6, 2015, Mitigated Negative Declaration No. 12-008, Resolution No. 2015-30 approving General Plan Amendment No. 12-002, and Ordinance No. 4065 approving Zoning Map Amendment No. 12-001 (LeBard Park and School Site Land Use Change to Residential —20451 Craimer Lane) Recommended Action: A) Approve Mitigated Negative Declaration No 12-008 with findings for approval, and, B) Approve General Plan Amendment No 12-002 by adopting City Council Resolution No 2015-30, "A Resolution of the City Council of the City of Huntington Beach Approving General Plan Amendment No 12-002,"and, C) Approve Zoning Map Amendment No 12-001 with findings for approval and approve for introduction Ordinance No 4065, "An Ordinance of the City of Huntington Beach Amending District Map 8 (Sectional Map 8-6-10) of the Huntington Beach Zoning and Subdivision Ordinance to Rezone the Real Property At LeBard School Located at 20451 Craimer Lane from Public/Semi- Public to Residential Low Density (RL) and Open Space - Park and Recreation (OS-PR) (Zoning Map Amendment No. 2012-001)." Approved 6-0-1 (O'Connell Absent) 19. Adopt Resolution No. 2015-38 approving General Plan Amendment (GPA) No. 05-001 R and approve for introduction Ordinance No. 4066 approving Zoning Map Amendment (ZMA) No. 05-001 R (Warner & Nichols Site — Rainbow Environmental Services) -s- City Council/PFA Action Agenda—Monday, Jul 20 200,�MENT 3 Recommended Action: A) Approve General Plan Amendment No 05-001 R by adopting City Council Resolution No 2015-38, "A Resolution of the City Council of the City of Huntington Beach Approving General Plan Amendment No 05-001 R," and, B) Approve Zoning Map Amendment No 05-001 R with findings for approval and approving for introduction Ordinance No 4066, "An Ordinance of the City of Huntington Beach amending the Huntington Beach Zoning and Subdivision Ordinance by changing the zoning designation from CG (Commercial General) on a +1 1 gross acre portion and IG (General Industrial) on a +3 3 gross acre portion of real property located on the southeast corner of Warner Avenue and Nichols Street back to the previous designation of RM (Residential Medium Density) (Zoning Map Amendment No 05-001 R) " 1 Speaker Approved 6-0-1 (O'Connell Absent) 20. Failed to Implement Assembly Bill 2188, Expedited Permit Process for Small Solar Photovoltaic Systems, by approving for introduction Ordinance No. 4067 and adopting Resolution No. 2015-39, and appropriate funding for a full time Building Plan Checker I Recommended Action: t An QFdlnaRGe ef the City ,t nj Adept ReselutlGR No 2f1'I1 6 39, "A Res 1t t+tTctiIG of the Git i Cnt tnnt1 of the City of 1. unt,ngten Beae.h AmeRdiRg the Gitywi de Development Coe SGhedule " , G) Annreve the rnerease of ene (1) Building Plan Gheeker 1 nee•,t,en to the DlanniRg and Building department Table of QFganizat,en and authenze.the 1 Speaker Failed 3-3-1 (Katapodis, Sullivan, Peterson-No; O'Connell-Absent) Motion to continue to August P meeting for reconsideration Approved 6-0-1 (O'Connell-Absent) 21. Approve the 2015/2016-2019/2020 Housing and Urban Development(HUD) Consolidated Plan, the 2016/2016 Annual Action Plan for Community Development Block Grant(CDBG) and HOME Investment Partnership (HOME) Programs and the Amended Citizen Participation Plan Recommended Action: A) Approve the 291 612016 201 912020 Housing and 1 FbaR develenment (HUD) , -9- City Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3 B!eGk GF tnt (GDB d HOME Investment Partnership (1-1(1ME) Program Funds, , G)_-Onnrnva the AmeRde ! Qltizon PaFtlGipatinn RaR, and r &GurneRtS f9F fedeFal,assiS nano t RdeF the GE)BG and 140ME PFGgFams Continue to August 3rd meeting with staff to address concerns raised by speakers, Council and the City Manager;specifically address strings/conditions with Affirmatively Furthering Fair Housing (AFFH). 2 Speakers Approved 6-0-1 (O'Connell-Absent) ADMINISTRATIVE ITEMS 22. Finance Department to provide a presentation regarding the FY 2015/2016 Proposed Budget highlights, and to present options for the use of the $3 million Budget Set-Aside Recommended Action: A) Receive and file the presentation on the FY 2015/16 Proposed Budget; and, B) Provide direction to staff regarding the options for use of the $3 million Budget Set-Aside Approved 6-0-1 (O'Connell-Absent) 23. Proposed Fiscal Year 2015/2016 Capital Improvement Program (CIP) submitted for City Council Review prior to Budget Approval Recommended Action: Receive and file the proposed Fiscal Year 2015/2016 Capital Improvement Program (CIP) Budget Approved 6-0-1 (O'Connell-Absent) COUNCILMEMBER ITEMS 24. aFe hir-ed by the Chief of PeNee Withdrawn— No Action Taken -10- City Council/PFA Action Agenda—Monday, Af20�2GQl1- MENT 3 25. Submitted by Councilmember Sullivan Re: Creation of a three-member City Council Ad Hoc Committee to recommend solutions to the dangerous conditions along the cliff path on Pacific Coast Highway from 17th Street to our northernmost parking lot Recommended Action: As amended, Establish a three-member City Council Ad Hoc Committee tasked to evaluate the problem and recommend solutions, to include a term of 6 months;and, the appointments of Councilmembers Posey, Sullivan and Delgleize Approved 6-0-1 (O'Connell Absent) COUNCILMEMBER COMMENTS (Not Agendized) Posey, Katapodis, Hardy, reported. ADJOURNMENT— 9:36 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, August 03, 2015, at 4 00 PM in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California INTERNET ACCESS TO CITY COUNCILIPUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov -11- City Council/PFA Action Agenda—Monday, July 20, 2015 ATTACHMENT 3