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HomeMy WebLinkAbout2017-03-20 Agenda PacketCITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA Monday, March 20, 20 17 MAYOR AND CITY COUNCIL FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer CITY OF HUNTINGTON BEACH 4:00 PM - Study Session 6:00 PM - Regu/ar Meeting Counci/ Chambers - 2000 Main Street Huntington Beach, CA 92648 http://www.huntingtonbeachca.gov BARBARA DELGLEIZE Mayor MIKE POSEY PATRICK BRENDEN Mayor Pro Tem Councilmember JILL HARDY WILLIAM O'CONNELL Councilmember Councilmember ERIK PETERSON LYN SEMETA Councilmember Councilmember WEB ACCESS: **REMINDER** Live Broadcast and audio and video archives can be accessed at http://huntingtonbeach.granicus.com As a courtesy to those in attendance, p/ease si/ence your ce// phones and pagers MEETING ASSISTANCE NOTICE - AMERICANS WITH DISABILITIES ACT In accordance with the Americans with Disabilities Act the following services are available to members of our community who require special assistance to participate in City Council meetings. If you require special assistance, 48-hour prior notification will enable the city to make reasonable arrangements. To make arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas, please contact the City Clerk's Office at (714) 536-5227, or request assistance from the Sergeant-at-Arms at the meeting. CITY COUNCIL/PUBLIC FINANCING AUTHORITY The City Council/Public Financing Authority of the City of Huntington Beach will regularly convene in joint session on the first and third Monday of each month for the purpose of considering agenda items. The Huntington Beach Successor Agency, Housing Authority, Parking Authority and Civic Improvement Corporation are also agencies on which the Council serves as members. On each agenda these agencies may have items scheduled. CITY COUNCIL AGENDA The City Council agenda and supporting documentation is made available for public review during normal business hours in the Office of the City Clerk, 2000 Main Street immediately following distribution of the agenda packet to a majority of the City Council. Packet delivery typically takes plan on Wednesday afternoons prior to the regularly scheduled meeting on Monday. The agenda packet is posted on the city's website at http://www.huntingtonbeachca.gov/Government/agendas/. Questions on agenda items may be directed to the City Clerk's Office at (714) 536-5227 . AUDIO/VIDEO ACCESS TO CITY COUNCIL MEETINGS City Council meetings are televised live on cable TV Channel 3, and can be viewed via live or archived web cast at http://www .huntingtonbeachca .gov/Government/agendas/ . SUPPLEMENTAL COMMUNICATION Staff and members of the public have the opportunity to submit information related to an agenda item following distribution of the agenda packet to the City Council. This information is identified as "Supplemental Communication" and is assembled into a packet by the City Clerk on the day of the City Council meeting. The Brown (Open Meetings) Act requires that copies of Supplemental Communication be made available to the public immediately upon distribution of material to a majority of the City Council. Communication received by any individual at the meeting will be made available to the public in the City Clerk's Office the following morning. AWARDS AND PRESENTATIONS Awards, presentations, and proclamations made by the Mayor on behalf of the City. The Public Information Office coordinates the arrangements with the Mayor and submits a list of presentations through the City Manager's Office. PUBLIC COMMENTS This is the time of the meeting for the City Council to receive comments from the public regarding items of interest or agenda items not scheduled for Public Hearing. Pursuant to the Brown (Open Meetings) Act, the City Council may not enter into discussion regarding items not on the City Council agenda. Members of the public who wish to speak to a member of the Council on an item not on the agenda may consider setting up an individual appointment by contacting the Council's Administrative Assistant at 714-536-5553 . The following statement applies to any public exchange of comments during City Council meetings: "The City Council strives to treat members of the public with respect. Comments or concerns provided by the public shall be done in a civil and respectful manner. Any public comments that are discriminatory, defamatory or otherwise not protected speech, whether as to race, religion, disability, sexual orientation, or any other protected classification, will not be considered by the City Council and may be a basis for the Mayor to interrupt the public comment. In addition, any such public comments will not be consented to, agreed to, ascribed to, or otherwise adopted by the City Council in its considerations, deliberations, discussions, and findings regarding any matter before it tonight. The City Council provides this public opportunity for free speech, but the City Council categorically rejects comments from anyone, including the public, that are of a discriminatory nature, and such comments will not inform the City Council's decision." To participate in Public Comments, pink Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms. Each speaker is allowed 3 minutes, and time may not be donated to another speaker. COUNCIL COMMITTEE / APPOINTMENTS / LIAISON REPORTS AND ALL AB 1234 DISCLOSURE REPORTING This agenda item allows Councilmembers to make announcements regarding Council committees, appointments or liaison reports, and all individuals as appropriate to disclose any conferences, training, seminars, etc. attended at the Agency's expense, per Government Code §53232 .3(d) . Lists of the conferences, training, seminars, and other activities generally attended by the City Council, City Manager, City Attorney, City Clerk, and City Treasurer are included as appendices to the City Budget. The budget is available on the city's website at http://www.huntingtonbeachca.gov/Government/budget_information/. Exceptions to these lists have been submitted as a report to the City Clerk for inclusion in the record of this meeting.. PUBLIC HEARING Public Hearings allow citizens to speak in favor or against specific items brought to Council by staff. Staff may provide a presentation. The Mayor will open the Public Hearing to receive comments on that specific item. Upon hearing all public comments, the Mayor will close or continue the Public Hearing. Council may then decide to engage in discussion and/or take action on the item. To participate in a Public Hearing, green Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms. ADMINISTRATIVE HEARING Administrative Hearings required by Huntington Beach Municipal Code Section 1 .18 entitle only affected property owners to speak on a respective item. To participate in the Administrative Hearing, b/ue Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms (the Police Officer located near the speakers' podium). CONSENT CALENDAR Consent Calendar items are considered routine items that do not normally require separate consideration. The City Council/Public Financing Authority usually makes one motion for approval of all the items listed under this section. However, Council may remove an item from the motion for discussion purposes. ADMINISTRATIVE ITEMS Administrative Items are considered separately and require separate motions. These actions are normally of a non-routine nature, and frequently require a staff presentation. ORDINANCES Ordinances require two readings before the City Council. They are first introduced, and then adopted at a subsequent meeting. Ordinances typically become law thirty (30) days after adoption. However, an emergency ordinance may be adopted upon introduction, and is effective immediately. COUNCILMEMBER ITEMS This portion of the agenda is provided for Items of business presented by individual members of the City Council CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA Monday, March 20, 20 17 MAYOR AND CITY COUNCIL FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer CITY OF HUNTINGTON BEACH 4:00 PM - Study Session 6:00 PM - Regu/ar Meeting Counci/ Chambers - 2000 Main Street Huntington Beach, CA 92648 http://www.huntingtonbeachca.gov -1- BARBARA DELGLEIZE Mayor MIKE POSEY PATRICK BRENDEN Mayor Pro Tem Councilmember JILL HARDY WILLIAM O'CONNELL Councilmember Councilmember ERIK PETERSON LYN SEMETA Councilmember Councilmember 4:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) STUDY SESSION . Community Services Department to present a report on the "Ship/ey to Shore" trai/ concept /inking Huntington Centra/ Park to Orange County Harriet Wieder Regiona/ Park, inc/uding an overview of the concept, issues, opportunities and constraints of the project in response to Counci/ direction provided at the January 26, 20 17 Strategic P/anning Retreat. RECESS TO CLOSED SESSION Mayor De/g/eize to Announce: Pursuant to Government Code § 54957.6, the City Counci/ takes this opportunity to pub/ic/y introduce and identify designated /abor negotiator, City Manager Fred Wi/son, who wi// be participating in today's C/osed Session discussions regarding /abor negotiations with: Huntington Beach Firefighters' Association (HBFA), Huntington Beach Po/ice Officers' Association (POA), and/or Surf City Lifeguard Emp/oyees' Association (SCLEA). City Council/PFA Agenda — Monday, March 20, 2017 -2- CLOSED SESSION 2. Pursuant to Government Code § 54956.9(d)( 1), the City Counci/ sha// recess into C/osed Session to confer with the City Attorney regarding the fo//owing /awsuit: Huntington Shorec/iff, LP v. City of Huntington Beach, et a/. (JS Stadium), Orange County Superior Court Case No. 30-20 11- 00463995. 3. Pursuant to Government Code § 54956.9(d)( 1), the City Counci/ sha// recess into C/osed Session to confer with the City Attorney regarding the fo//owing /awsuit: Cory Weker/e v. City of Huntington Beach, Orange County Superior Court Case No. 30-20 16-00839579. 4. Pursuant to Government Code § 54956.9(d)( 1), the City Counci/ sha// recess into C/osed Session to confer with the City Attorney regarding the fo//owing /awsuit: ComUNIDAD v. City of Huntington Beach; Orange County Superior Court Case No. 30-2016-00869173-CU-WM-CXC. 5. Pursuant to Government Code § 54957.6, the City Counci/ sha// recess into C/osed Session to meet with its designated /abor negotiators and Fred Wi/son, City Manager regarding the fo//owing: Huntington Beach Firefighters' Association (HBFA), Huntington Beach Po/ice Officers' Association (POA), and/or Surf City Lifeguard Emp/oyees' Association (SCLEA). 6. Pursuant to Government Code § 54956.9(d)( 1), the City Counci/ sha// recess into C/osed Session to confer with the City Attorney regarding the fo//owing /awsuit: Kevin Jackson vs. City of Huntington Beach, WCAB Case No. ADJ 10 15343 & ADJ 10 152339; C/aim No. COHB-14-0168. 7. Pursuant to Government Code § 54956.9(d)( 1), the City Counci/ sha// recess into C/osed Session to confer with the City Attorney regarding the fo//owing /awsuit: Rona/d Thompson vs. City of Huntington Beach, WCAB Case No. ADJ943 1733; C/aim No. COHB-14-0082. 6:00 PM — COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson PLEDGE OF ALLEGIANCE INVOCATION - To be /ed by Mark Currie of Baha'i of Huntington Beach and member of the Greater Huntington Beach Interfaith Counci/ City Council/PFA Agenda — Monday, March 20, 2017 -3- 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 AWARDS AND PRESENTATIONS Mayor De/g/eize to ca// on Victoria A/berty and Gise/a Campagne to present the Adoptab/e Pet of the Month. Mayor De/g/eize to present commendation to Marina High Schoo/ student Austin Hwang as he was recent/y honored as a "Luminary" by the Disney/and Resort for his action to improve his community. Mayor De/g/eize to ca// on Fire Chief David Segura to present commendations to Go/den West Co//ege Track and Fie/d coaches and staff for their /ife-saving efforts to he/p ASGWC President and team member Javier Venegas. Mayor De/g/eize to ca// on representatives from the Internationa/ Surfing Museum who wi// present "Operation Rings." Mayor De/g/eize to ca// on Library Services Director Stephanie Beverage to present the Mayor's Award to Library Services C/erk, Debra Garcia. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3 Minute Time Limit) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES CITY MANAGER'S REPORT CONSENT CALENDAR 1. Approve and adopt minutes Recommended Action: Review and adopt the City Council/Public Financing Authority regular meeting minutes dated March 6, 2017, and the City Council special meeting minutes dated March 14, 2017, as written and on file in the office of the City Clerk. 2. Receive and fi/e the City of Huntington Beach Strategic P/an Updates Recommended Action: Receive and file the Six-Month Strategic Objectives City Council/PFA Agenda — Monday, March 20, 2017 -4- 3. Approve Fisca/ Year 20 15/ 16 Year-End Budget Adjustments, Inter-fund Transfers and Avai/ab/e Fund Ba/ance Recommendations Recommended Action: Approve the year-end budget adjustments, transfers, and fund balance recommendations for the Fiscal Year 2015/16 Revised Budget in the Funds and amounts contained in Attachments 1 and 2 . 4. Approve Fisca/ Year 20 15/ 16 Year End Audit and Conso/idated Genera/ Liabi/ity Fund Recommended Action: Authorize the City Manager to perform all actions necessary to properly record and fund a General Liability Internal Service Fund (Fund 552) for the fiscal year ended September 30, 2016, and adjust the FY 2016/17 Adopted Budget accordingly. 5. Authorize the re/ease of the Guarantee & Warranty Bond for Lamb Park (Fairwind Subdivision) Recommended Action: Release the Guarantee & Warranty Bond No . PB03010402299 and instruct the City Treasurer to notify the Surety, Philadelphia Indemnity Insurance Company of this action. 6. Adopt Reso/ution No. 20 17- 11 amending the City's C/assification P/an adding the c/assification of Senior Finance Ana/yst Recommended Action: Adopt Resolution No . 2017-11, "A Resolution of the City Council of the City of Huntington Beach Amending the City Classification Plan by Adding the Classification of Senior Finance Analyst." 7. Approve and authorize execution of Amendment No. 2 with Hinder/iter, de L/amas and Associates in an amount not to exceed $ 115,000 for Sa/es and Use Tax Auditing Services and increase Appropriations and Professiona/ Services Authority according/y Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute "Amendment No . 2 to Agreement Between the City of Huntington Beach and Hinderliter, de Llamas and Associates for Sales and Use Services;" and, B) Increase Appropriations and Professional Services Authority in the Finance Department Accordingly. 8. Approve and authorize execution of a three-year Professiona/ Services Contract with Keyser Marston Associates, Inc., in the amount not exceed City Council/PFA Agenda — Monday, March 20, 2017 -5- $ 180,000 for Economic Ana/ysis Services Recommended Action: Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract between the City of Huntington Beach and Keyser Marston Associates, Inc. for Economic Analysis Services" in the amount not to exceed $180,000 over a three-year period. 9. Authorization for the City Attorney to enter into Amendment No. 1 to Agreement with A/varadoSmith, and amend the Budget and Professiona/ Services Authority according/y Recommended Action: Authorize the City Attorney to enter into "Amendment No . 1 to Attorney Services Agreement with AlvaradoSmith," and amend the Budget and Professional Services Authority accordingly. 0. Adopt Ordinance No. 4 130 re-estab/ishing Fees for State Franchised Video Service Providers as part of the City's membership on the joint powers authority of the Pub/ic Cab/e Te/evision Authority (PCTA) Approved for introduction March 6, 20 17, Vote: 7-0 Recommended Action: Adopt Ordinance No . 4130, "An Ordinance of the City of Huntington Beach Re- Establishing Fees for State Franchised Video Service Providers." COUNCILMEMBER ITEMS . Submitted by Counci/member Brenden - Naming of the Bandstand in Centra/ Park Recommended Action: The task of the official naming the Bandstand at Central Park for Tom Ridley be referred to the Community Services Commission for appropriate research, review and recommendation to the full City Council. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, Apri/ 03, 20 17, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. City Council/PFA Agenda — Monday, March 20, 2017 -6- INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntin gtonbeachca. gov City Council/PFA Agenda — Monday, March 20, 2017 4:30 PM - COUNCIL CHAMBERS Based on the limited amount of time needed to cover items in Study Session and Closed Session, the meeting was called to order at 4:30 PM. CALLED TO ORDER — 4:30 PM ROLL CALL 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 PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) — None Present: O’Connell, Semeta, Posey, De For Study Session Item No. 1, one (1) communication: a PowerPoint communication received from Police Chief Robert Handy, entitled Updating City Municipal Codes , to be presented by Captain Kelly Rodriguez of the H. B. Police Department, and a draft of the ordinances for discussion and information purposes only for tonight. 1. Staff presented to the City Council proposed updates to the following Huntington Beach Municipal Code (HMBC) Chapters 8.21, 12.32, 13.08, 13.10, and 13.48, in an effort to modernize and comply with various court decisions. A video recording of the 4:00 PM and 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ d Peterson Minutes City Council/Public Financing Authority City of Huntington Beach Monday, March 6, 2017 4:00 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 Police Chief Handy discussed issues related to tentative Municipal Code changes and introduced Captain Kelly Rodriguez who presented a PowerPoint communication entitled Updating City Municipal Codes, Presented by Captain Kelly Rodriguez, HBPD with slides entitled: Updating City Municipal Codes (6 slides), Proposed New Municipal Code, Updating City Municipal Codes (2 slides), Proposed New Municipal Code, Proposed Municipal Code, and Comments/Questions. HB -9- Item 1. - 1 Council/PFA Regular Minutes March 6, 2017 Page 2 of 12 Chief Handy explained that the purpose of this meeting is to start the discussion process on these issues, and that the suggested changes are to bring the City’s code current with case law. City Attorney Gates explained more details about the proposed changes. Councilmembers Brenden, O'Connell and Peterson discussed several concerns with Chief Handy who explained that the proposed changes are to protect the civil liberties of everyone. A motion was made by O’Connell, second Posey to recess to Closed Session for Items 2 – 3. With no objections, the motion carried. RECESS TO CLOSED SESSION — 4:48 PM Mayor Delgleize Announced : Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator, City Manager Fred Wilson, who will be participating in today’s Closed Session discussions regarding labor negotiations with: Huntington Beach Firefighters’ Association (HBFA), Municipal Employees’ Association (MEA), Huntington Beach Police Officers’ Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). CLOSED SESSION 2. Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Huntington Beach Firefighters’ Association (HBFA), Municipal Employees’ Association (MEA), Huntington Beach Police Officers’ Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). 3. 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: Jaime Lopez vs. City of Huntington Beach, WCAB Case No. ADJ10195282; Claim No. COHB-13-0235. 6:00 PM – COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:05 PM ROLL CALL Present: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember O’Connell INVOCATION - Rev. Kelly Frankiewicz of 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. Item 1. - 2 xB -10- Council/PFA Regular Minutes March 6, 2017 Page 3 of 12 CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS Mayor Delgleize called on 90-year-old WWII Veteran Mr. Frank Puccilli who sang the Star Spangled Banner in honor of it becoming our National Anthem 86 years ago on March 3, 1931. Mayor Delgleize called on Ken Inouye who presented the Orange County Human Relations Commission (OCHRC) Annual Report in conjunction with OCHRC Board Member Minzah Malik. Mayor Delgleize proclaimed California Arbor Week March 7-14, 2017, and presented a proclamation to Jean Nagy. Mayor Delgleize called on the representatives from the Children’s Needs Task Force to thank them and Barnes & Noble for their donation of 3,579 books to local schools and youth-oriented organizations from their annual book drive. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: For Consent Calendar Item No. 2, a PowerPoint communication received from Robin Estanislau, City Clerk submitting a correction to the Advisory Board title in the February 21, 2017 minutes. For Item No. 9, email communication received from Patricia Quintana. For Ordinances for Introduction, Item No. 13, a PowerPoint communication entitled Ordinance . For Councilmember Items, Item No. 14, email communication from Richardson Gray. PUBLIC COMMENTS (3 Minute Time Limit) — 29 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 . Joe Carchio was called to speak and expressed condolences for the recent passing of Gil Coerper, former Huntington Beach Mayor, Councilmember and Police Officer, and requested that this Council meeting be dedicated in Mr. Coerper's memory. (00:42:07) Dave Sullivan was called to speak and expressed his opinion that Council support for Councilmember Posey's Downtown Business Improvement District (DBID) full audit would indicate no confidence in the Finance Commission, which is composed of members appointed by the Council members. Mr. Sullivan offered solutions in support of reinstating Sunday hours for the Central Library, and expressed his support and gratitude for the Huntington Beach Police Officers and Firefighters. (00:44:06) Richard Armendariz, Residents 4 Reasonable Desalination (R4RD) member, was called to speak and expressed his opposition to the Poseidon Desalination project. (00:47:15) Henry Carey, Co-Owner, Bomburger, was called to speak and expressed his support of Council Member Items No. 14 regarding modifying conditions of approval included in Resolution No. 2013-24 xs -11- Item 1. - 3 Council/PFA Regular Minutes March 6, 2017 Page 4 of 12 for Downtown establishments with alcohol sales. He also expressed his opinion that the City should be taxing, rather than issuing fines, for medical marijuana dispensaries. (00:50:23) Chad Kroeger was called to speak and proposed that the City install a 12 foot steel statue of Paul Walker on the pier, that it be created by Damian Ortega, and asked how to get the project started. (00:53:34) Bodhi Johnson was called to speak and expressed his support of honoring a former Huntington Beach resident, Paul Walker, by placing his statue on the pier. (00:55:35) Kelsey Gerlach was called to speak and expressed gratitude for the City's programs to support first- time homeowners and small business owners. She also expressed concerns about the toxic chemicals used in City parks and common areas and offered alternate solutions that may even reduce costs. Mayor Delgleize asked Ms. Gerlach to complete a blue card for follow-up. (00:56:59) Maureen was called to speak and shared several personal experiences she has had with various City employees. She personally commended Code Enforcement Officer Jimmy Hoang and Assistant City Clerk Patty Esparza for responding to her requests in a timely manner, and acknowledged the hard work of City Attorney Michael Gates regarding the Kennedy Commission. She also requested that the speaker's one-minute buzzer be fixed. (00:59:34) Ethan Smith, 10 years old, was called to speak and encouraged the use of natural, non-toxic products and methods to treat the City's parks and common areas for the protection of people and pets. (01:02:10) Paul Horgan, HB Take Action member, was called to speak and expressed frustration in trying to communicate with Congressman Dana Rohrabacher. Mr. Horgan requested the assistance of the City Council in scheduling a town hall meeting with the Congressman. (01:03:40) Leslie Gilson, Gibbs Park Restoration Coordinator for the Butterfly Park, was called to speak and reported that ten trees came down at Gibbs Park in the storms this winter, including two that were one hundred years old. She asked that the City Council direct more money towards parks and landscape for winter storm cleanup. (01:06:53) Ann Anderson, Secretary of the Huntington Beach Tree Society, was called to speak and presented a short video entitled Thank You 2016 HB Tree Society Volunteers . (01:08:16) Jean Nagy, Huntington Beach Tree Society, was called to speak and shared that all trees at the farm in Golden View will be organic and will not be sprayed. For Arbor Day, she encouraged homeowners to plant a California Native Redbud, the City’s official tree, on their property. Visit the Urban Forest now to see these trees in blossom. (01:11:21) Juana Mueller was called to speak and expressed appreciation for the leadership that Jean Nagy provides for the Huntington Beach Tree Society. Ms. Mueller also expressed her support of the request that Mr. Horgan made for the City Council to invite Congressman Rohrabacher to participate in a town hall meeting. (01:14:41) Marius Cucurny was called to speak and expressed appreciation for the tree on the curb at the property he purchased on Opera Lane in 1997, and asked how to stop the current plan to remove the curb trees on Opera Lane. Mayor Delgleize asked him to complete a blue card for follow-up. (01:16:29) Item 1. - 4 HB -12- Council/PFA Regular Minutes March 6, 2017 Page 5 of 12 Paul Slavik, Huntington Beach Board Riders, was called to speak and expressed his concerns about the increasing great white shark sightings along the coast. Mr. Slavik requested that the City Council create an ordinance, similar to what Manhattan Beach did, that would prohibit chumming and other activities that attract sharks. Mayor Delgleize asked him to complete a blue card for follow-up. (01:19:42) Ashley Collins, Non-Toxic Huntington Beach Board Member, was called to speak and expressed her concern about the toxic chemicals used in City parks and common areas and provided the City of Irvine as an example of a local municipality that has decided to no longer use toxic chemicals. (01:22:23) Pat Goodman was called to speak and expressed her support for Sunday hours at the Central Library and appreciation for the efforts that the City is making to address the homelessness issue. Mayor Delgleize asked her to complete a blue card for follow-up by the Homeless Liaison. (01:24:31) Katja Flores was called to speak and expressed her concerns about the use of toxic herbicides and pesticides in the City which in her opinion negatively impact the lives of people, pets and pollinators. She encouraged the City to use eco-friendly products in parks and common areas. (01:27:39) Arthur Hausen was called to speak and expressed his frustration in trying to get a sidewalk on Graham Street where his handicapped son must navigate. Mayor Pro-Tem Posey suggested that he complete a blue card for follow-up. (01:29:55) Dave Shenkman, The Kite Connection, was called to speak and invited everyone to view, or take some lessons, at the Kite Party on the north side of the Pier on Saturday and Sunday, March 11 and 12, where international experienced kite fliers will exhibit their skills. (01:33:34) Wes Parker was called to speak and expressed his opinions on residents vs. illegal aliens, especially as related to police services. (01:35:40) Raymond Herrera was called to speak and expressed his opinions on illegal aliens in America. (01:38:17) Dan Kalmick, Huntington Beach Planning Commissioner, was called to speak and suggested that when discussing Councilmember Items No. 14, the Council look at the City of Newport Beach Operator's Permit which allows uncoupling of land use from alcohol sales. (01:41:34) Stephen Knight, Orange County Sober Living Coalition, was called to speak and shared that he has resources to assist with the neighborhood issues that can be created by treatment houses. (01:45:03) Ralph Bauer was called to speak and read a letter addressed to the Council on the topic of homelessness in Huntington Beach, asking them to participate in addressing the issue in meaningful ways. He is still awaiting a response to his recent request for a meeting on the topic. (01:48:55) Victor Valladares, Oak View ComUNIDAD, was called to speak and expressed his appreciation for Chief Handy and the excellent job that H. B. Police Officers are doing in protecting the City's residents. Mr. Valladares also expressed his support of the request that Mr. Horgan made for the City Council to invite Congressman Rohrabacher to participate in a town hall meeting. (01:51:42) Brenda Calvillo was called to speak and expressed her support of previously stated concerns about the use of toxic herbicides and pesticides in the City which in her opinion negatively impact the lives of people, pets and pollinators. Ms. Calvillo also expressed concern about fishing from the pier and xs -13- Item 1. - 5 Council/PFA Regular Minutes March 6, 2017 Page 6 of 12 allowing sharks to be caught, and her support of the request that Mr. Horgan made for the City Council to invite Congressman Rohrabacher to participate in a town hall meeting. (01:54:46) Richard Plummer was called to speak and expressed his opposition to Council Member Items No. 14 regarding modifying conditions of approval included in Resolution No. 2013-24 for Downtown establishments with alcohol sales. (01:56:51) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Brenden reported meeting with the Surf City Lifeguard Employee Association (SCLEA) representatives regarding the part-time lifeguards. Mayor Pro Tem Posey reported attending the Orange County Vector Control New Trustee Orientation meeting. Councilmember Peterson reported attending the Southern California Association of Government (SCAG), Community and Economic Human Development Committee meeting which discussed the 2020 Regional Transportation Plan and Sustainable Communities Strategies (RTPSCS). Councilmember Peterson encouraged people to go to the SCAG website to read and comment on the 2020 Plan. Councilmember O'Connell reported attending a special meeting of the Orange County Housing Authority Commission. Councilmember Semeta reported attending a Homeless Orange County Task Force meeting where Supervisor Bartlett made a presentation. Mayor Delgleize reported attending an Orange County Transit Authority (OCTA) meeting and Association of California Cities - Orange County(ACC-OC) Homeless Task Force meetings. CITY MANAGER’S REPORT 1. City Clerk presented information on this year’s July 4, 2017, Safe and Sane Fireworks Stand Application and Lottery Process City Manager Wilson introduced City Clerk Robin Estanislau who shared a PowerPoint presentation entitled Safe and Sane Fireworks Stand Application and Lottery Process 2017 with slides entitled: 2017 Fireworks Stand Application/Lottery Process (6 slides), and Questions . CONSENT CALENDAR Councilmember Brenden pulled Consent Calendar Item Nos. 3, 4 and 11 for further discussion. 2. Approved and adopted minutes A motion was made by Posey, second O’Connell to review and adopt the City Council/Public Financing Authority regular meeting minutes dated February 21, 2017, as written and on file in the office of the City Clerk, as amended by supplemental communication . The motion carried by the following vote: Item 1. - 6 xs -14- Council/PFA Regular Minutes March 6, 2017 Page 7 of 12 AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 3. Appropriated $54,113.18 from the Federal Asset Forfeiture account for the purchase of 20 complete AR-15 Patrol Rifles to include sight optics, back-up sights, flashlights, magazines, carry slings, and nylon bags for the sworn officers of the Huntington Beach Police Department Councilmember Brenden pulled this item for further discussion with Police Chief Handy regarding details of how funds are acquired for the Federal Asset Forfeiture account. A motion was made by Brenden, second O’Connell to appropriate $54,113.18 from Federal Asset Forfeiture account 21270101.63100 for the purchase of 20 AR-15 Patrol Rifles, optics, flashlights, magazines, carry slings, and nylon bags; and, authorize the Chief of Police to use these funds to purchase the 20 complete AR-15 Patrol Rifles. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 4. Approved and accepted a donation in the amount of $117,248 from the Friends of the Huntington Beach Public Library (FOTL) for the purchase of books, eBooks and other library resources Councilmember Brenden pulled this item to thank the Friends of the Library (FOTL) for the amazing work they do to support the City's libraries. Director of Library Services Stephanie Beverage reported that over the last five years the FOTL have contributed $1.1 million dollars. A motion was made by Brenden, second Posey to approve and accept the donation from the Friends of the Huntington Beach Public Library, allocating $117,248.00 to Adult Donations account 10350102.64455. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 5. Approved City Council position on Legislation pending before the State Legislature as recommended by the City Council Intergovernmental Relations Committee (IRC) A motion was made by Posey, second O’Connell to approve a City position of oppose on AB 250 (Gonzalez Fletcher) State Coastal Conservancy: Lower Cost Coastal Accommodations Program; and, approve a City position of support on SB 720 (Allen) Government Tort Liability: Beach Fire Pits. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None xB -15- Item 1. - 7 Council/PFA Regular Minutes March 6, 2017 Page 8 of 12 6. Adopted Resolution No. 2017-01, designating the Chief Financial Officer, City Treasurer, Finance Manager/Deputy City Treasurer, and Finance Manager/Accounting Services as persons authorized to execute financial transactions in the name of the City of Huntington Beach A motion was made by Posey, second O’Connell to adopt Resolution No. 2017-01, "A Resolution of the City Council of the City of Huntington Beach Authorizing the Manual and/or Facsimile Signatures of the Chief Financial Officer, the City Treasurer, the Finance Manager/Deputy City Treasurer, and the Finance Manager/Accounting Services" as persons authorized to execute financial transactions in the name 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 7. Adopted Resolution No. 2017-08 declaring Weeds and Rubbish a Nuisance on Specific Properties and fixing May 1, 2017, at 6:00 p.m. for Hearing Protests and Objections to the Abatement thereof A motion was made by Posey, second O’Connell to adopt Resolution No. 2017-08, "A Resolution of the City Council of the City of Huntington Beach Finding and Declaring that Certain Weeds Growing in the City, and Rubbish and Refuse Deposited on Public Ways and Private Property are a Public Nuisance; and Fixing the Time for Hearing Protests and Objections to the Abatement Thereof." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 8. Adopted Resolution No. 2017-10 adopting the Measure M2 Expenditure Report to comply with Renewed Measure M2 funding eligibility for the City of Huntington Beach A motion was made by Posey, second O’Connell to adopt Resolution No. 2017-10, "A Resolution of the City Council of the City of Huntington Beach Adopting the Measure M2 Expenditure Report for the City of Huntington Beach." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 9. Approved and authorized execution of Amendment No. 2 to the Professional Services Contract with Townsend Public Affairs extending the term for one-year and adding additional compensation in the amount of $48,000 for a total contract amount not to exceed $192,000 for State Lobbyist Services; and, approved and authorized the execution of a one-year Professional Services Contract with Townsend Public Affairs in the amount of $24,000 for Federal Lobbyist Services A motion was made by Posey, second O’Connell to approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Professional Services Contract Between the City of Huntington Beach Item 1. - 8 HB -16- Council/PFA Regular Minutes March 6, 2017 Page 9 of 12 and Townsend Public Affairs for State Lobbyist Services" in an amount not to exceed $48,000 for one year; and, approve and authorize the Mayor and City Clerk to execute "Professional Services Contract between the City of Huntington Beach and Townsend Public Affairs for Federal Lobbyist Services" in an amount not to exceed $24,000 for one year. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 10. Approved and authorized execution of a three-year contract in the amount of $315,000 with Carl Warren & Co. to provide liability claims processing services A motion was made by Posey, second O’Connell to approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Carl Warren & Co. for Liability Claims Investigating and Processing," for an initial one (1) year period with the option to renew for two (2) additional one (1) year terms for a total of three (3) years. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 11. Awarded and authorized execution of a three-year contract in an amount not to exceed $6.21 million dollars with Siemens Industry Inc., for the acceptance, energy efficiency retrofit, and maintenance of streetlights to be acquired from Southern California Edison (SCE); and, authorized transfer of funds Councilmember Brenden pulled this item to discuss with Director of Public Works Travis Hopkins the expected savings and time frame for completion of this project. Councilmember Posey and Assistant to the City Manager Antonio Graham discussed expected income from some of the new street light poles, specific details on income potential to be presented at a future Study Session, and reviewed the history of this cutting-edge opportunity. Councilmember Peterson and Transportation Manager Bob Stachelski discussed that the general physical condition of the poles has been evaluated, and there is consideration for the color/warmth of bulbs being used in residential vs. commercial locations. Councilmember O'Connell and Transportation Manager Bob Stachelski discussed purchase, installation, retrofit and long-term maintenance costs. Mayor Delgleize thanked staff for their dedicated effort to keep this exciting project moving forward. A motion was made by Brenden, second O’Connell to award a contract to Siemens Industry Inc. for the professional and maintenance services of streetlights not to exceed $6.21 million and authorize the Mayor and City Clerk to execute the agreement; and, authorized the transfer of funds from the Energy Efficiency fund (807) in the amount of $208,000 to General Fund account 10085304.64620. The motion carried by the following vote: xB -17- Item 1. - 9 Council/PFA Regular Minutes March 6, 2017 Page 10 of 12 AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None ADMINISTRATIVE ITEMS 12. Presentation made by the Municipal Water District of Orange County (MWDOC); held discussion as recommended by the Intergovernmental Relations Committee (IRC), and directed staff to prepare a letter of support for Mayor’s signature relating to the Metropolitan Water District of Southern California (MET) California WaterFix and California Eco Restore Project City Manager Wilson introduced Robert Hunter, General Manager of Metropolitan Water District of Orange County (MWDOC) who gave a PowerPoint presentation entitled The California WaterFix, A State of the Art, Real Solution to Modernize, Repair and Protect California's Aging Water Delivery System from the North with slides entitled: Southern California and Its Water, State Water Project, Sacramento - San Joaquin Bay Delta, What's the Problem?, Major Threats to the Delta, At Risk with Major Delta Failure, California WaterFix (The Plan), How Much Will It Cost? California Waterfix Opposition Issues, How Much Will It Cost?, MWDOC Calls to Action, What Can You Do?, The Bottom Line is It's Now or Never, Join the Coalition, and Questions? Councilmember O'Connell and Mr. Hunter discussed project cost details, project completion and expected pay-off in about 30 years. Councilmember Peterson and Mr. Hunter discussed that the State owns the water but the water utilities will be managing this project. Councilmember Semeta and Mr. Hunter discussed that the “system” consists of pipes, pumps and reservoirs. Councilmember Hardy and Mr. Hunter discussed the fact that there doesn't appear to be any public opposition to this project. Mayor Pro Tem Posey and Mr. Hunter discussed that this project will not affect the Sacramento Delta water flow which prevents sea water from coming too far inland. A motion was made by O’Connell, second Semeta to direct Staff to prepare a draft letter of support for the Mayor's Signature. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None ORDINANCES FOR INTRODUCTION 13. Approved for introduction Ordinance No. 4130 re-establishing Fees for State Franchised Video Service Providers as part of the City’s membership on the joint powers authority of the Public Cable Television Authority (PCTA) City Manager Wilson introduced this item and stated that it must be considered every ten years. Item 1. - 10 HB -18- Council/PFA Regular Minutes March 6, 2017 Page 11 of 12 A motion was made by Semeta, second O’Connell to, after the City Clerk reads by title, approve for introduction Ordinance No. 4130, "An Ordinance of the City of Huntington Beach Re-Establishing Fees for State Franchised Video Service Providers." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None COUNCILMEMBER ITEMS 14. Submitted by Councilmembers Posey and Peterson — Modify Conditions of Approval included in Resolution for Downtown Establishments with alcohol sales Councilmember O'Connell recused himself because of a financial interest in the area and left the dais. Mayor Pro Tem Posey introduced this item by stating the intent is to level the playing field for hours of operation for Downtown businesses. Councilmember Peterson added that there is also the need for an enforcement mechanism that can acknowledge the difference between responsible vs. non-responsible business owners. Councilmember Brenden stated that one of his concerns is how the resolution may affect existing business owners, and asked that staff also consider the City of Newport Beach operator permit. Councilmember Peterson confirmed that staff will be looking at all options. Councilmember Hardy stated that she will not support this item because it does not contain enough specifics. She is also concerned about the difference between hours of operation vs. hours alcohol is served. Councilmember Semeta stated she expects that changes might result in incentivizing business owners to make upgrades. A motion was made by Peterson, second Posey to direct staff to work with the City Attorney to explore the legal issues and present options regarding modifying the Conditions of Approval included in Resolution No. 2013-24 to eliminate the hours of operation limitations for a 12:00 Midnight closure for new establishments and any additional amendments to the Conditions of Approval, including hours of operation for existing establishments and return with a new Resolution. The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Brenden, and Peterson NOES: Hardy RECUSED: O’Connell COUNCILMEMBER COMMENTS (Not Agendized) Mayor Pro Tem Posey reported attending the 2017 Huntington Beach Fire Department Awards and Recognition Ceremony, and stated that O.C. Mosquito and Vector Control asks everyone to remove all standing water to help reduce the mosquito population. xs -19- Item 1. - 11 Council/PFA Regular Minutes March 6, 2017 Page 12 of 12 Councilmember Brenden announced that the City of Huntington Beach was recently ranked in fourth place for Fiscal Responsibility out of 116 other cities across the U.S. He also reported speaking to 80 Boy Scouts at the Orange County Water District, attended a recent meeting of the Beautification, Landscaping and Tree Committee, Council on Aging Board Meeting, the 2017 Huntington Beach Fire Department Awards and Recognition Ceremony, a tour of the Police Department, the League of California Cities Orange County Division General Membership meeting for a Legislative Update provided by Senators Moorlach and Newman as well as Assemblyman Choi. Councilmember Hardy provided updates on the Huntington Beach Reads One Book event, and shared some experiences related to working with Gil Coerper, a great servant for the community who will be greatly missed. Councilmember O'Connell reported attending a Manufacturer's Networking Event, the Huntington Beach Chamber 113th Annual Gala, the ACCOC Homeless Task Force - Central OC Service Area Meeting, a Homeless Orange County Task Force meeting where Supervisor Bartlett made a presentation and a CSP meeting. Councilmember O'Connell thanked City Manager Fred Wilson, Chief Financial Officer Lori Ann Farrell and staff for their outstanding performance which resulted in the City's recent Fiscal Responsibility recognition. He also expressed his condolences to the family and friends of Gil Coerper. Councilmember Semeta reminded everyone of the March 11th Huntington Beach Marine 3/One 5K Run to benefit the 3rd Battalion. Mayor Delgleize announced that the Huntington Beach Chamber has scheduled a State of the City meeting on March 15, 8 - 10 a.m., at the Senior Center in Central Park. ADJOURNMENT — 9:03 PM The meeting was adjourned in memory of Gil Coerper to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, March 20, 2017, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: City Clerk-Secretary Mayor-Chair Item 1. - 12 xs -20- WESTIN KA’ANAPALI 6 KAI ALA DRIVE LAHAINA, MAUI, HI 96761 Present: O’Connell, Semeta, Posey (via telephone from teleconference location), Delgleize, Hardy, and Brenden Absent: Peterson ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) – None. TELECONFERENCING LOCATION (MAYOR PRO TEM MIKE POSEY): Time Limit MOTION T CALLED TO ORDER — 5:35 PM Councilmember Peterson requested, and was granted permission to be absent pursuant to Resolution No. 2001-54 COUNCIL – 5 CLOSED SESSIO ROLL CALL PUBLIC COM 1. 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: Huntington Shorecliff, LP v. City of Huntington Beach, et al. (JS Stadium), Orange County Superior Court Case No. 30-2011-00463995. ON ITEM NO. 1 APPROVED BY CONSENSUS OF ING CLOSED SESSION ITEM(S) (3 Minute Minutes City Council Special Meeting City of Huntington Beach Tuesday, March 14, 2017 5:30 PM – 4 th Floor CR #2 Civic Center, 2000 Main Street Huntington Beach, CA 92648 ADJOURNMENT – 6:42 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, March 20, 2017, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov HB -21- Item 1. - 13 Financial Impact : Not Applicable Dept. ID AD 17-009 Page 1 of 2 Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Ken Domer, Assistant City Manager SUBJECT: Receive and file the City of Huntington Beach Strategic Plan Updates Statement of Issue : In 2009, the City Council began an annual strategic planning process to develop consensus on a Mission Statement, Three-Year Goals, and corresponding Priority Strategic Objectives. In fulfilling this process, the City Council met on January 26, 2017, to review and update the Three-Year Goals and their Priority Strategic Objectives. At the February 21, 2017, City Council meeting, the City Council approved the Strategic Objectives as developed at the January 26 th off-site session. The updated Six-Month Strategic Objectives Grid is attached. Recommended Action : Receive and file the Six-Month Strategic Objectives. Alternative Action(s): Reject the updates and direct staff accordingly. Analysis : At the City Council's direction, a strategic planning process was undertaken to establish consensus on the City's Core Values and Priority Strategic Objectives. This process is on-going and is a critical component of maintaining the City in a fiscally sustainable manner. On January 26, 2017, the City Council, City Manager, and Department Heads met in a public meeting to update the three- year goals and to come to consensus on new Six-Month Strategic Objectives. The City Council's mission statement is as follows: "The City of Huntington Beach provides sustainable quality services to maintain and enhance our safe and vibrant community." The Three-Year Goals are organized into four categories: • Improve quality of life • Enhance and maintain infrastructure • Strengthen economic and financial sustainability • Enhance and maintain public safety • Enhance and maintain City Service Delivery Item 2. - 1 xs -22- Environmental Status : N/A Strategic Plan Goal : Non-Applicable —Administrative Item Dept. ID AD 17-009 Page 2 of 2 Meeting Date: 3/20/2017 Each of these categories includes a list of six-month strategic objectives. New to the process this year, the strategic objectives that gained consensus at the off-site session were agendized at a regular City Council meeting as an administrative item. The Council was asked to approve of the strategic objectives in this format to ensure public transparency and authorization for Staff to proceed on bringing forward each of the items. The strategic objectives were approved and each month Staff will provide the attached matrix with updated information on the status of the Six-Month Strategic Objectives. Attachment(s): 1. City of Huntington Beach Six-Month Strategic Objectives Grid (26 January 2017 through 31 July 2017) xs -23- Item 2. - 2 Item 2. -3 HB -24- CITY O F H U N T I N G T O N B E A C H SIX-MONTH STRATEGIC OBJECTIVES January 26, 2017 — July 27, 2017 THREE-YEAR GOAL: IMPROVE QUALITY OF LIFE WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. May 15, 2017 -- City Council Study Session Community Services Dir., working with the Shipley-to- Shore Stakeholder Working Group Develop a report on a "Shipley to Shore" Trail System from Shipley Nature Center to PCH. X Planning for the March 20 City Council Study Session 2. April 1, 2017 City Manager Launch the Citizens' Academy. X Going to Council for approval on April 17, 2017. June 5, 2017 3. June 1, 2017 Community Services Dir., in partnership with California State University Long Beach Develop a conceptual plan for Irby Park and present it to the Community Services Commission and the City Council for consideration. X Presented Conceptual Plan to the Community Services Commission on March 8. Tentatively scheduled for City Council on April 3, 2017 THREE-YEAR GOAL: ENHANCEAND MAINTAIN INFRASTRUCTURE WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. April 1, 2017 Asst. City Mgr. and the Chief Information Officer Conduct a study session to review progress on the Broadband Initiative and on the use of streetlights for wireless communication. X Consultant (Jory Wolf) will give an update on the status of the Broa dban d initiative at the stu dy session on April 3. The team is meeting on Thursday 3/16 to discuss content of the presentation. 2. April 1, 2017 Community Services Dir., working with the Central Park Committee Identify and recommend projects within the provided budget for the infrastructure improvements to Central Park and present to the City Council for action. X Identified two priority projects at the March 8 Community Services Commission Central Park Sub- committee meeting. Will further refine costing and present to Council in May June 5, 2017 3. June 1, 2017 Public Works Dir. Present to the City Council for consideration a Financial Plan to address the infrastructure needs as identified in the Water Master Plan. X Study Session is scheduled for June 19. HB -25- Item 2. -4 Item 2. -5 HB -26- THREE-YEAR GOAL: STRENGTHEN ECONOM/C AND F/NANC/AL SUSTA/NAB/L/TY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. March 15, Asst. City Manager and the Dep. Dir. Economic Development Present to the City Council for consideration an Economic Development Implementation Plan for Business Retention, Attraction and Expansion. X Economic Development Implementation Plan Draft was presented at the February EDC meeting an d is being reviewe d by the City Council, Chamber of Commerce and several Departments. Will have final review at April EDC and then go to the City Council for adoption in April. 2017 April 30, 2017 2. July 1, 2017 Dep. Dir. Economic Development, working with the Chief Financial Officer Identify and attract at least three new businesses to increase sales tax revenue X Newlight Technologies has signed a lease (manufacturing), working with former Sport Chalet on a new tenant. 3. July 1, 2017 -- As part of the FY 2017-2he8 bu dget process Human Resources Dir. and Chief Financial Officer Develop funding plans to enhance the funded status of the city's Workers' Comp, Retiree Medical, and Retiree Supplemental Plans. X Recommen dations will be provi ded in the context of the FY 2017/18 Propose d Bu dget. 4. July 15, 2017 Asst. City Manager— lead, Dep. Dir. Economic Development, and Councilmembers Billy O'Connell, Patrick Brenden and Lyn Semeta, in coordination with regional business partners Create a Business Incubator Implementation Plan that results in five new businesses by January 1, 2018. X Staff is researching various Incubators framework. Once completed a meeting will be held with the City Councilmember's and regional business partners (Goldenwest College, Chamber of Commerce, SBC) 5. July 15, 2017 Community Development Dir. Complete the draft comprehensive General Plan Up date an d draft Environmental Impact Report for distribution an d public comment. X In progress - anticipate a May 2017 release of a draft for public comments. HB -27- Item 2. - 6 Item 2. -7 HB -28- THREE-YEAR GOAL: ENHANCEAND MAINTAIN PUBLIC SAFETY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. May 1, 2017 Police Chief Complete a Gun Range Feasibility Study and present the findings and a recommendation to the City Council for action. X Staff is developing scope of work 2. May 15, 2017 Fire Chief, working with a consultant Complete and submit to the City Manager and City Council for review a Fire Standards of Cover and Staffing Report. X Report and recommendations were presented at a City Council Study Session on October 17, 2016 an d Study recommendations will be considered at the April 17, 2017City Council meeting. 3. June 1, 2017 Police Chief and Public Works Dir. Complete a Police Facility Needs Assessment and present the findings to the City Manager. X Staff is developing scope of work 4. July 15, 2017 Fire Chief Complete and present the findings of a Peak Load Staffing for Emergency Transport Services Feasibility Study and make a recommendation to the City Manager for consideration. X Preliminary staffing model has been drafted and is being reviewed by Fire Division Chief of Operations. Study remains on schedule for July completion. HB -29- Item 2. - 8 THREE-YEAR GOAL: ENHANCEAND MAINTAIN CITY SERVICE DELIVERY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. April 1, 2017 City Clerk and Chief Information Officer, with input from the City Attorney Recommend to the City Manager for action a Public Records Act (PRA) Management Process and identification of staff to appropriately respond to PRA requests in a structure d format. X PRA software has been selected. The team will meet in March to discuss funding source and purchasing process. 2. June 1, 2017 Chief Information Officer Recommend to the City Manager at least two options to implement a smart tool or mobile app that enhances online accessibility for current and new services. X IS staff researched options, met with multiple vendors, and selected the vendor of choice to build a mobile app that exten ds citywi de services through mobile devices and ultimately replace Pipeline through phased approach. 3. June 1, 2017 Chief Information Officer Present to the City Manager for action a recommen dation to automate processing of citywi de forms currently processe d manually. X IS staff have researche d options an d will meet with the top three form automation vendors in April. 4. June 1, 2017 City Clerk — lea d, Public Information Officer an d Chief Information Officer Recommen d to the City Manager for action at least two options for provi ding visitor assistance at the Huntington Beach Civic Center in either a virtual format an d/or in person. X CIO an d City Clerk discussed options. Implementation of a virtual format will be inclu de d as part of the Council Chamber Technology upgra de in 16/17 FY. Financial Impact : Dept. ID FN17-006 Page 1 of 3 Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wil son ' City Manager PREPARED BY: Lori Ann Farrell Harri son ' Chief Financial Officer SUBJECT: Approve Fiscal Year 2015/16 Year-End Budget Adju stment s ' Inter-fund Transfers and Available Fund Balance Recommendations Statement of Issue : The Finance Department i s currently undergoing the year-end closing process for Fiscal Year 2015/16 ' which began on October 1 ' 2015 ' and ended on September 30 ' 2016. Certain technical adjustments and fund transfers need to be made to reconcile the budget with actual expenditures incurred and/or revenues received for certain grants and fund s ' and to comply with auditing ' actuarial ' accounting or legal requirements. City Council authorization i s requested to perform these reconciliations in order to properly close FY 2015/16. There are sufficient revenue s ' available ca sh ' and/or fund balances to support these adjustments. A. Inter-Fund Transfers (Various Funds): Authorization i s requested for inter-fund transfers totaling $2.4 million to provide seed funding for a new Technology Fund ($825 '000); reduce the unfunded liability in the Workers' Compensation Fund ($400 '000); and to reconcile grants and other funds with actual expenses incurred and/or revenue received ($1 '209 '483). Attachment 1. B. Inter-Departmental Transfers: Authorization i s requested for a department-to-department transfer of $1.0 million in existing appropriations from the Public Works Department to Non- Departmental in order to better reconcile and track the Atlanta Avenue Widening project. C. Appropriation Increases (Various Funds): Appropriation increases totaling $559 '122 are requested in order to reconcile the FY 2015/16 Revised Budget in various funds with actual expenditures incurred and grant awards received a s reflected in Attachment 2. Recommended Action : Approve the year-end budget adju stments ' tran sfers ' and fund balance recommendations for the Fiscal Year 2015/16 Revised Budget in the Funds and amounts contained in Attachments 1 and 2. Alternative Action(s): Do not approve the recommendation and direct staff accordingly. Item 3. - 1 xB -30- Dept. ID FN17-006 Page 2 of 3 Meeting Date: 3/20/2017 Analysis : Fiscal Year 2015/16 year-end budget adjustments are requested to align appropriations in certain funds with actual expenditures incurred through September 30 ' 2016 ' a s actual expenditures cannot exceed the appropriation amounts contained in the Revised Budget. Adjustments are also required to ensure compliance with GAAP ' GASB and other regulatory ' contractual or legal requirements. In addition ' staff recommendations regarding the utilization of $1.2 million in available General Fund Balances are included. Please note these requested actions are fully offset by commensurate amounts of revenue s ' available cash or fund balances in each Fund. Inter-Fund Transfers (Attachment 1 1. General Fund (100): City Council authorization i s requested to utilize preliminary FY 2015/16 year-end available General Fund Balance of $1 '225 '000 for the following: 1) Appropriation and transfer of $825 '000 to provide seed money for a new Technology Fund (Fund 323) to help address the costs associated with the City's comprehensive and aged technology systems; and ' 2) Appropriation and transfer of $400 '000 into the Self-Insurance Workers' Compensation Fund (Fund 551) to help reduce the Fund's $11.8 million unfunded liability. Year-end General Fund transfers are also requested a s follows: 1) $148 '985 to the Affordable Housing-in-Lieu-of-Fees Fund to transfer revenue mistakenly posted to the General Fund and to comply with City Council Resolution 2007-71; 2) $19 '271 to the Emergency Operations Fund to properly account for City costs associated with rainstorm related activities; and 3) $8 '637 in transfers to the CDBG 2011/12 Fund and Huntington Beach Financing Authority to account for actual expenses incurred and minor debt service adjustments. 2. RORF (350): A transfer of $458 '554 to the General Fund i s requested to transfer Successor Agency revenues to the General Fund that can be utilized to pay for City expenses authorized by the California Department of Finance for ROPS 15-16B and 16-17A periods. 3. Debt Service - HBFA (401): The Debt Service Funds contain fees such a s arbitrage and bond trustee fees that were incurred. A budget adjustment of $2 '050 i s requested to reconcile additional minor expenses. Sufficient fund balances are available. 4. Debt Service — Bella Terra (410): Authority i s requested to transfer $128 '517 from the Parking Structure - Bella Terra Fund (711) to the Bella Terra Debt Service Fund (410) based on actual special tax levy amounts assessed in FY 2015/16. 5. CalTrans Grant (878): An appropriation transfer of $247 '612 from the Gas Tax Fund (207) i requested to fulfill the grant matching requirements of the CalTrans Grant Fund (878). 6. HUD Senior Center (994): Authorization i s requested to transfer eligible grading expenses amounting to $108 '956 incurred for the Senior Center in Central Park to the Senior Center Development Fund (319) to maximize bond reimbursement. Inter-Departmental Transfers (Attachment 1) Infrastructure Fund (314): City Council authorization i s requested to transfer an appropriation of $1.0 million between departments ' from Public Works to Non-Departmental for the Atlanta Widening Project to better track project expenses. This action has a net neutral fiscal impact. xs -31- Item 3. - 2 Attachment(s): Strategic Plan Goal : Improve Quality of Life. Enhance and Maintain Infrastructure. Strengthen Economic and Financial Sustainability. Enhance and Maintain Public Safety. Enhance and Maintain City Service Delivery. Dept. ID FN17-006 Page 3 of 3 Meeting Date: 3/20/2017 Appropriation Adjustments (Attachment 2) General Fund (100): A budget adjustment of $418 '319 i s requested for the Fire Department to true-up the budget for extra overtime costs incurred a s a result of Strike Team deployments. This action has a net neutral fiscal impact a s the City has already been reimbursed for these expenses. Other Grants and Funds (Various): The City applies for and receives grants throughout the year ' even after the City's annual budget has been adopted. For example ' new grants become available mid-year a s the State's fiscal year starts July 1 st ' nine months after the City's annual budget i s adopted. As such ' numerous Federal ' State ' and County grants have been received and expenses have been incurred in FY 2015/16 that need to be reconciled to the amounts received and expenditures incurred in the respective grant/other fund. 1. Fire JPA Fund (704): An appropriation increase of $78 '000 in Fund 704 - Fire JPA for capital improvements at the Training Center a s approved by the JPA Board i s requested. 2. Hotel/Motel BID Fund (709): Increased appropriations of $34 '967 in Fund 709 — Hotel/Motel BID for revenues received that exceeded projections i s requested. 3. Fourth of July Parade (204): An appropriation increase of $10 '000 i s requested to true-up the budget for actual costs incurred for the Fourth of July event. 4. CDBG 11/12 Fund: Appropriation increases of $6 '590 are requested to true-up the budget for CDBG program funds received and expended by the City for that specific grant year. 5. Specific Events (101): An appropriation increase of $6 '000 i s requested to cover additional personnel costs incurred for the Huntington Beach Air Show held on October 21 - 23 ' 2016. 6. Sustainable Business Programs Fund (1234): An appropriation increase of $4 '907 in the Sustainable Business Certification Program i s requested to increase appropriations to the level of the grants and/or funds received ' and to transfer eligible expenditures into the Fund. 7. UASI/OCIAC Fund (909): A minor increase of $339 i s requested to meet a match requirement. Environmental Status : Not Applicable. 1. Fiscal Year 2015/16 Inter-Fund Transfers and Inter-Departmental Transfers. 2. Fiscal Year 2015/16 Appropriation Adjustments. Item 3. - 3 HB -32- ATTACHMENT 1 Fiscal Year 2015/2016 Inter-Fund Transfers Department From Name Amount To Fund Name Non-Departmental 100 General Fund $ 825,000 323 Technology Fund Non-Departmental 100 General Fund $ 400,000 551 Workers' Compensation Subtotal * $ 1,225,000 Non-Departmental 350 RORF Fund $ 458,554 100 General Fund Public Works 207 Gas Tax Fund $ 247,612 878 CalTrans Grants Fund Non-Departmental 100 General Fund $ 148,985 217 Housing in Lieu Fees Non-Departmental 410 Debt Svc: Bella Terra $ 128,517 711 Parking Structure-Bella Terra Community Services 994 HUD Senior Center $ 108,956 319 Senior Center Development Office of Business Dev 1220 Home Program Fund $ 66,240 852 Home Program Fund Various 100 General Fund $ 19,271 238 Emergency Operations Office of Business Dev 854 Home Program Fund $ 15,814 1220 Home Program Fund Office of Business Dev 233 Housing Res. Receipts $ 6,897 1220 Home Program Fund Various 100 General Fund $ 6,587 962 CDBG 11/12 Fund Non-Departmental 100 General Fund $ 2,050 401 Debt Svc: HBPFA Subtotal $ 1,209,483 Total $ 2,434,483 Fiscal Year 2015/2016 Inter-Departmental Transfers Fund Fund # From Department: Amount To Department: Infrastructure Fund 314 Public Works 1,000,000 Non-Departmental *Note : Staff recommends if additional funds become available above the $1.2 million in preliminary fund balance identified, that the additional funds be placed in the Section 115 Trust Reserve to help reduce pension liabilities. If the reverse occurs, and audit adjustments must be made by March 31, 2017 that reduce preliminary available fund balance, staff recommends the commensure reduction of the Workers' Comp Fund transfer of $400,000. xB -33- Item 3. - 4 ATTACHMENT 2 FY 2015/2016 Appropriation Adjustments Appropriation Fund No. Fund Name Department Adjustment 100 General Fund Fire 418,319 704 Fire JPA Fund Fire 78,000 709 Hotel/Motel BID Fund Non-Departmental 34,967 204 4th of July Fund Community Services 10,000 962 CDBG 11/12 Fund Office of Business Dev 6,590 101 Specific Event Fund Office of Business Dev 6,000 1234 Sustainable Business Fund Office of Business Dev 4,907 909 UASI/OCIAC Fund Police 339 Total $ 559,122 Item 3. - 5 HB -34- Financial Impact : This action will result in the consolidation of $12.7 million in existing short and long term general liability expenses and funding as of September 30, 2016, into a single General Liability Internal Service Fund (Fund 552) as summarized in Attachment 1. This action transfers existing appropriations and reserves from current sources into the new Fund to better budget, track, and monitor Citywide general liability costs. The independent auditors hired by the City to audit and review the Citywide financial statements approve of this recommendation as it improves the monitoring and proper recording of both short and long term general liability costs. If approved, the Fund's short term claims and costs ($4.7 million) and projected long term claims and expenses ($7.4 million) will be recorded on the City's financial statements totaling $12.1 million in total liabilities. Assets of $12.7 million that have been transferred into the Fund from the General Fund and the previously established General Liability Special Revenue Fund (Fund 237) will result in a minor positive fund balance of $599,000 to help address future claims. Staff also recommends amending the Adopted Budget for the current fiscal year, FY 2016/17, to reflect the new Fund. Dept. ID FN17-007 Page 1 of t Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Chief Finance Officer SUBJECT: Approve Fiscal Year 2015/16 Year End Audit and Consolidated General Liability Fund Statement of Issue : City Council authorization is requested to consolidate Citywide accounting and funding for general liability costs into a single General Liability Internal Service Fund pursuant to Generally Accepted Accounting Principles (GAAP). This new Fund will help the City more accurately track, monitor, and forecast actual and projected expenses for the City's general liability program. This action is also needed in order to finalize the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2016, subject to certification by the City's independent, external auditors. Recommended Action : Authorize the City Manager to perform all actions necessary to properly record and fund a General Liability Internal Service Fund (Fund 552) for the fiscal year ended September 30, 2016, and adjust the FY 2016/17 Adopted Budget accordingly. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. xB -35- Item 4. - 1 Strategic Plan Goal : Strengthen economic and financial sustainability Dept. ID FN17-007 Page 2 of 2 Meeting Date: 3/20/2017 Analysis : As discussed at the January 26, 2017, Strategic Planning Session, general liability costs have been rising due to a variety of factors including increased litigation costs. As a result, City Council approval is requested to consolidate the funding and accounting for these costs pursuant to Generally Accepted Accounting Principles. This will provide for better budgeting tracking, and forecasting of Citywide general liability related expenses. The City is self-insured for its general liability program and is generally liable for all costs up to $1 million per claim. Costs up to that amount are paid from the General Fund Budget and/or Reserves. While the City has attempted to reduce overall budgetary expenditures, an area of concern is the accounting for the City's general liability claims. As such, the City's assets and liabilities related to general liability claims are recommended to be transferred to a new consolidated fund. Short-term general liability claims (due and payable within a year) total $4.7 million. Claims due and payable in more than one year totaling $7.4 million will be expensed as part of the year-end closing process to record the long term portion of the general liability claims transferred from the General Fund. As one of the Strategic Planning Goals is to "Strengthen Economic and Financial Sustainability," it is strongly recommended that the City consolidate these costs and funding sources to better account for these costs. A small fund balance of $599,000 is recommended for the Fund as costs may continue to rise above these amounts in the out-years. The City currently funds its general liability costs, claims, settlements, and lawsuits on an as- needed basis and funding is often challenging. While this action does not create a new recurring funding stream for these costs, it does consolidate existing funding sources, including annually budgeted amounts and existing reserves into a single Internal Service Fund pursuant to GAAP. In addition, utilizing the existing Self Insured General Liability Fund 237 for this purpose is not recommended. Fund 237 was initially created as a Special Revenue Fund and must have a specific, discrete recurring revenue source to fund its operations (non-General Fund) pursuant to GAAP and Governmental Accounting rules. Such a recurring and discrete revenue source does not exist. An Internal Service Fund, which can be supported by transfers from the General Fund and other funds as needed, is the accounting structure most appropriate to meet the City's needs, hence, the establishment of an Internal Service Fund is recommended for this purpose. The recommended action is necessary in order to better satisfy our auditors and complete the financial statements for the fiscal year ending September 30, 2016, currently under auditor review. Attachment 1 summarizes financial information currently under review by the auditors for the Fund. This information will be updated each year and included in the annual audit of the City's accounts and financial statements for accuracy. Please note, as the FY 2015/16 audit is not yet finalized, there may be additional adjustments, up o r down, to these figures. However, based on preliminary discussions with the independent auditors, this financial information is the best available data at this time. The City's independent auditors will finalize their audit and review of the financial statements on o r before March 31, 2017. The audited and finalized Comprehensive Annual Financial Report will be distributed to the City Council upon its completion. Environmental Status : Not Applicable Attachment(s): 1. Self Insured General Liability Internal Service Fund Pro Forma for the fiscal year ending September 30, 2016 (DRAFT). Item 4. - 2 HB -36- ATTACHMENT 1 Self Insurance General Liability Fund - 552 DRAFT Pro-Forma (in thousands) BALANCE SHEET Assets Cash and Investments 10,286 Prepaid Insurance 2,422 Total Assets 12,708 Liabilities Claims Payable and Due Within One Year (4,718) Claims Payable and Due in Excess of One Year (7,391) Total Liabilities (12,109) Net Position $ 599 * As of September 30, 2016 BB -37- Item 4. - 3 Financial Impact : No funding is required for this action. Recommended Action : Environmental Status : The subject request is exempt pursuant to the California Environmental Quality Act. Dept. ID PW 17-008 Page 1 of t Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED T O: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Authorize the release of the Guarantee & Warranty Bond for Lamb Park (Fairwind Subdivision) Statement of Issue : The required fifteen month warranty period has now elapsed for the Lamb Park public improvements, which were constructed by TRI Pointe Homes, Inc. as a condition of approval for their Fairwind Subdivision development (Tract 17238). Their Guarantee & Warranty Bond is now eligible for release. Release the Guarantee & Warranty Bond No. PB03010402299 and instruct the City Treasurer to notify the Surety, Philadelphia Indemnity Insurance Company of this action. Alternative Action(s): Deny the recommended action. Denying the recommended action may violate the Subdivision Map Act whereby Section 66499.7 of the Government Code requires that the securities given for the faithful performance of constructing public improvements shall be released upon acceptance of the work. Analysis : On December 7, 2015, City Council accepted the newly constructed public park that was designed and built by TRI Pointe Homes, Inc., to satisfy the requirements of their Fairwind Subdivision development (Tract 17238). The new park includes a multi-use soccer field, tot-lot play areas, shade structure, picnic tables, benches, parking lot, water quality features, irrigation and landscaping. At that same meeting, City Council also accepted Guarantee & Warranty Bond No. PB03010402299, as security for the fifteen month warranty period which ended on March 7, 2017. The City Engineer has now determined that the improvements were constructed in substantial compliance with the approved plans and specifications, have performed satisfactorily throughout the warranty period. The Guarantee & Warranty Bond can now be recommended for release. Item 5. - 1 HB -38- Dept. ID PW 17-008 Page 2 of 2 Meeting Date: 3/20/2017 Strategic Plan Goal : Non-Applicable —Administrative Ite Attachment(s): None HB -39- Item 5. - 2 Financial Impact : Funding for the proposed job classification is included in the FY 2016-17 budget. The budget funds currently allocated for existing position vacancies will be used to fill the proposed classification resulting in a cost-neutral impact to the FY 16/17 adopted budget. This new classification does not add to the department's table of organi2ation. Statement of Issue : The City's Classification Plan requires an amendment to incorporate changes considered and approved by the Personnel Commission, adding the classification of Senior Finance Analyst, at the meeting held February 22, 2017. Dept. ID HR 17-003 Page 1 of 2 Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Michele Warren, Director of Human Resources SUBJECT: Adopt Resolution No. 2017-11 amending the City's Classification Plan adding the classification of Senior Finance Analyst Recommended Action : Adopt Resolution No. 2017-11, "A Resolution of the City Council of the City of Huntington Beach Amending the City Classification Plan by Adding the Classification of Senior Finance Analyst." Alternative Action(s): Reject the amendment to the classification plan. In accordance with Personnel Rule 12-4, if an amendment to the City's Classification Plan is rejected by the City Council, the City Council is to refer such amendments or revisions back to the Personnel Commission with reasons for rejection and its recommendation thereon. Analysis : The Personnel Commission has considered and approved the following amendment to the City's Classification Plan: At the February 22, 2017, meeting, the Personnel Commission approved a new classification of Senior Finance Analyst and established compensation at pay grade MEO868. The position will be represented by the Management Employees Organi2ation. Reporting directly to the Finance Manager - Budget the primary responsibility for the classification will be to serve as a lead analyst in the preparation, implementation, and administration of the City's annual and capital improvement budgets. Currently, the department is allocated the classification of Senior Administrative Analyst in support of the budget preparation process. However, the Senior Administrative Analyst classification does not meet the department's needs in that it is a general advanced journey-level analyst classification Item 6. - 1 xB -40- N/A Strategic Plan Goal : Enhance and Maintain City Service Delivery Dept. ID HR 17-003 Page 2 of 2 Meeting Date: 3/20/2017 designed to provide professional support to a designated department and is not sufficient to meet the needs of a central Finance Department and operation which is responsible for citywide tracking, monitoring, financial reporting, auditing and fiscal oversight. Moreover, the Senior Budget Analyst job classification is significantly outdated and as currently written, reflects duties performed by an incumbent reporting directly to the then City Administrator. It is also compensated at a lower salary than the Senior Administrative Analyst classification it provides instructions to, resulting in a high turnover ratio. This classification does not comport with the current structure or needs of the City or department. In furtherance of the Finance Department's fiduciary responsibility, the proposed classification will support the city-wide budget development process by assisting the Finance Manager-Budget in the work required of Finance to coordinate, collaborate, guide, and direct other department analysts in the preparation, evaluation, and analysis of department budget documents, worksheets, expenditure requests, and related items. This lead analyst classification is required to produce high quality accounting and analytical work, will help implement process improvements, and must have advanced skills, experience, and specia li2ed costing abilities. Additionally, this classification will help maintain the City's AAA rating, further implement strong internal controls, adhere to various Governmental Accounting standards, such as SAS 112, and generate advanced special fund analysis. The financial impact will be absorbed within the Finance Department's operating budget. Environmental Status : Attachment(s): 1. Resolution No: 2017-11 2. Senior Finance Analyst Classification Specification (Exhibit A) 3. Modified MEO Salary Table (Exhibit B) 4. 2/22/2017 Staff Report to Personnel Commission recommending creation of Senior Finance Analyst xB -41- Item 6. - 2 Item 6. - 3 HB -42- JOB SUMMARY Senior Finance Analyst differs from Senior Administrative Analyst in that Senior Finance Analyst participates in the oversight and preparation of the City’s overall budget and financial reports while the Senior Administrative Analyst is responsible for performing advanced-journey level financial, research, administrative, and analytical duties in support of an assigned department. • Assists in establishing parameters for revenue and expenditure estimates and makes recommendations for fiscal guidelines in the budgetary process • Participates in the development of schedules, formats, policies, and procedures for the annual adopted budget • Assists departments with the formulation, implementation and administration of capital and operating budgets • Provides direction to department staff during budget preparation and year end closing; serves as Finance Department liaison in directing and assisting department representatives with budget development, administration and implementation throughout the year to ensure adherence to established budget and financial parameters • Monitors and reviews financial performance of City departments and projects by conducting budgetary, variance and fund analyses and preparing reports; reviews revenue and expenditures of departmental budgets and develops mitigation plans Under supervision, performs a variety of advanced professional-level financial analysis in the performance of a broad range of duties of extreme complexity related to City budgetary operations and finance administration. SUPERVISION RECEIVED AND EXERCISED Reports to: Finance Manager -- Budget DISTINGUISHING CHARACTERISTICS EXAMPLES OF ESSEN TITLE: SENIOR FINANCE ANALYST PERSONNEL COMMISSION APPROVAL: FEBRUARY 22, 2017 COUNCIL APPROVAL: TBD of HB -43- 4 Item 6. - 4 TITLE: SENIOR FINANCE ANALYST • Monitors, evaluates, and reports on operating and capital budget revenues and expenditures • Develops and coordinates budget and financial forecasting models; performs budget projections and variance analyses • Prepares a variety of complex financial analyses, forecasts and reports utilizing computer software and other projection tools • Performs due diligence on budgetary and financial matters to ensure the accuracy of fiscal information provided to staff, the Executive Tea • Reviews and analyzes fiscal information submi • Recommends options and methods to reduce c • Assists in developing and maintaining the five-y • Performs special projects such as overhead allocation benchmark studies and review of applications for funds, • Researches, reviews, analyzes and follows-up on legislation related to revenues, expenditures, and general governmental financ • Analyzes and prepares costing estimates in su • Collaborates with other Finance Department staff of all financial requests to ensure proper application and conformance with City rules an • Assists with implementation of City Council directives regarding development and revision of b • Assists in the preparation of the Capital Improvement Program funding including analyzing available funds estimates and fund balance information • Reviews alternative revenue sources and assists in coordinating the activities necessary for im • Provides technical assistance regarding budget development, as needed, to departments • Reports to work as scheduled, works a variety of schedules including evenings, weekends, a • P The preceding duties have been provided as examples of the essential types of work performed by positions within this job classification. The City, at its discretion, may add, modify, change or rescind work assignments as needed. MINI Any combination of education, training, and experience that would likely provide the knowledge, skills, and abilities to successfully perform in the position is qualifying. A typical combination includes: Knowledge of: - Principles and practices of best budget practices, budget development and financial reporting programs for public sector entities - Federal, State, and local laws, rules, and regulations governing municipal financial Page 2 of 4 HB -44- Item 6. - 5 TITLE: SENIOR FINANCE ANALYST ot is Ex Li SP Ability to: - Perform complex budget and financial analyses, reports and projections - Understand, interpret, and apply laws, rules, regulations, policies, procedures, contracts, best budget practices, budgets, and labor/management agreements - Analyze proposed capital, personnel, operating and maintenance expenditures; manage the tracking and monitoring of budget expenditures, including contracts - Prepare multi-year financial historical and forecast models - Plan, organize, prioritize, delegate and coordinate work to completion in a timely manner - Compile and analyze complex data - Communicate effectively orally and in writing - Prepare comprehensive reports and correspondence - Analyze situations, identify problems, and recommend solutions - Interact professionally with various levels of employees and outside representatives - Exercise judgment and creativity in making conclusions and recommendations - Exercise independent judgment in managing workload demands and priorities - Plan and coordinate multiple high profile projects simultaneously Employees regularly assigned/required to drive a city or personal vehicle in the course and scope of work shall be required to participate in the DMV Employer Pull Notice program. Education: Bachelor’s degree in Business, Finance, Public Administration, Economics, or research for a municipality or other public sector entity. record required by time of appointment and during course of employment. systems, revenue sources, and budget administration - Financial management concepts and applications and contemporary modeling methods related to revenue and expenditure projections - Research methods and financial concepts and applications - Principles and practices of record keeping, report writing, and project management - Computer technology and software related to financial analysis, modeling, data management, and manipulation ersity. A Master’s degree in a related field ct to develop consensus driver license with an acceptable driving complex budgetary financial analysis and Public Employee Disaster Service Worker: In accordance with Government Code Section 3100, all Huntington Beach city employees are required to perform assigned disaster service worker duties in the event of an emergency or a disaster. 3 of HB -4s- 4 Item 6. - 6 TITLE: SENIOR FINANCE ANALYST PHYSICAL TASKS AND ENVIRONMENTAL CONDITIONS The incumbent must be able to meet the physical requirements of the job class and have mobility, balance, coordination, vision, hearing and dexterity levels appropriate to the duties to be performed. Work is performed in a general office environment, requiring sitting for prolonged periods of time; standing and walking to retrieve work files or to other departments or office locations; leaning, bending and stooping to perform work behind a desk or to retrieve information; pushing, turning or twisting to move chair or body from desk; reaching to place or retrieve files or open file drawers or cabinets; light grasping to hold a writing instrument or documents; firm grasping as needed to lift and carry work files or operate office equipment; finger dexterity to type on a computer keyboard; and, hearing and speaking to answer the telephone or answer questions of co-workers and subordinates. Work may necessitate some lifting, carrying, pushing and/or pulling of objects and materials of light weight (5-10 pounds). Job requires working in a fast- paced, high-pressure environment and may necessitate adjusting work schedules to include working nights, scheduled days off, and weekends to meet obligatory deadlines and quick turnaround assignments or projects. Reasonable accommodation(s) for an individual with a qualified disability will be considered on a case-by-case basis. Page 4 of 4 HB -46- Item 6. - 7 DRAFT MEO Salary Schedule - Hourly Rate 2.0% Effective 9-24-16 *Modified 11/07/16 **Modified 12/19/16 ***Modified 01/17/17 ****Modified 03/20/17 Job No Job Description Pay Grade A B C D E 0025 Admin Analyst MEO025 36.38 38.38 40.50 42.73 45.07 0084 Admin Analyst Principal MEO084 45.32 47.81 50.44 53.21 56.14 0089 Admin Analyst Sr MEO089 41.86 44.16 46.58 49.14 51.85 0078 Assistant City Attorney MEO078 64.28 67.81 71.53 75.46 79.61 0132 Assistant City Clerk MEO132 39.03 41.17 43.43 45.82 48.34 0595 Assistant Fire Marshal MEO595 46.70 49.27 51.97 54.84 57.84 0057 Assistant to the City Manager MEO057 48.84 51.52 54.36 57.34 60.50 0123 Associate Civil Engineer MEO123 42.27 44.59 47.04 49.63 52.37 0071 Associate Planner MEO071 39.61 41.78 44.08 46.51 49.07 0569 Beach Maint Operations Mgr MEO569 50.83 53.62 56.57 59.68 62.96 0044 Beach Operations Supervisor MEO044 41.65 43.93 46.35 48.90 51.59 0064 Budget Analyst Senior MEO064 40.21 42.42 44.76 47.22 49.82 0598 Building Manager MEO598 58.44 61.66 65.05 68.62 72.40 0500 ***Business Systems Manager MEO500 57.58 60.74 64.09 67.62 71.33 0024 City Engineer MEO024 66.54 70.21 74.07 78.14 82.44 0125 Code Enforcement Supervisor MEO125 41.43 43.71 46.11 48.65 51.33 0471 Community Relations Officer MEO471 45.32 47.81 50.44 53.21 56.14 0353 Community Services Manager MEO353 50.83 53.62 56.57 59.68 62.96 0097 Construction Manager MEO097 50.83 53.62 56.57 59.68 62.96 0085 Contract Administrator MEO085 43.33 45.72 48.23 50.89 53.68 0081 Deputy City Attorney I MEO081 42.27 44.59 47.04 49.63 52.37 0080 Deputy City Attorney II MEO080 50.83 53.62 56.57 59.68 62.96 0079 Deputy City Attorney III MEO079 58.44 61.66 65.05 68.62 72.40 0068 Deputy City Engineer MEO068 56.71 59.83 63.13 66.60 70.26 0571 Deputy Dir of Econ Development MEO571 57.58 60.74 64.09 67.62 71.33 0486 Detention Administrator MEO486 41.86 44.16 46.58 49.14 51.85 0039 Econ Development Proj Mgr MEO039 46.22 48.77 51.45 54.27 57.26 0580 Energy Project Manager MEO580 46.22 48.77 51.45 54.27 57.26 0474 Facilities, Devel & Conc Mgr MEO474 48.36 51.01 53.82 56.77 59.89 *PER RESOLUTION 2016-75 ADOPTED ON 11/07/16, RESOLUTION 2016-76 ADOPTED 12/19/16, RESOLUTION 2017-06 ADOPTED 01/17/17 AND RESOLUTION 2017-11 ADOPTED 03/20/17 xB -47- Item 6. - 8 DRAFT MEO Salary Schedule - Hourly Rate 2.0% Effective 9-24-16 *Modified 11/07/16 **Modified 12/19/16 ***Modified 01/17/17 ****Modified 03/20/17 Job No Job Description Pay Grade A B C D E 0050 Facilities Maint Supervisor MEO050 41.65 43.93 46.35 48.90 51.59 0879 Finance Manager - Accounting MEO879 52.37 55.24 58.29 61.50 64.87 0889 Finance Manager - Budget MEO889 52.37 55.24 58.29 61.50 64.87 0899 Finance Manager - Fiscal Services MEO899 52.37 55.24 58.29 61.50 64.87 0869 Finance Manager - Treasury MEO869 52.37 55.24 58.29 61.50 64.87 0131 Fire Medical Coordinator MEO131 41.21 43.48 45.88 48.40 51.07 0130 Fire Protection Analyst MEO130 41.21 43.48 45.88 48.40 51.07 0590 Fleet Operations Supervisor MEO590 41.65 43.93 46.35 48.90 51.59 0581 General Services Manager MEO581 56.16 59.25 62.51 65.94 69.56 0498 GIS Manager MEO498 53.69 56.65 59.75 63.05 66.51 0043 Housing Manager MEO043 53.15 56.08 59.16 62.41 65.84 0006 Human Resources Manager MEO006 55.32 58.36 61.57 64.96 68.53 0489 ***Info Syst Communications M gr MEO489 53.69 56.65 59.75 63.05 66.51 0200 ***Info Syst Computer Ops Manager MEO200 53.69 56.65 59.75 63.05 66.51 0489 ***Info Technology Mgr-Infrastructure MEO489 53.69 56.65 59.75 63.05 66.51 0200 ***Info Technology Mgr-Operations MEO200 53.69 56.65 59.75 63.05 66.51 0500 ***Info Technology Mgr-Systems MEO500 57.58 60.74 64.09 67.62 71.33 0075 Inspection Manager MEO075 51.57 54.42 57.41 60.57 63.90 0073 Inspection Supervisor MEO073 43.99 46.41 48.96 51.65 54.49 0251 Investigator MEO251 35.83 37.81 39.89 42.09 44.40 0158 Landscape Architect MEO158 41.21 43.48 45.88 48.40 51.07 0049 Landscape Maint Supervisor MEO049 41.65 43.93 46.35 48.90 51.59 0572 Liability Claims Coordinator MEO572 37.67 39.74 41.93 44.25 46.68 0030 Maintenance Operations Mgr MEO030 56.16 59.25 62.51 65.94 69.56 0032 Marine Safety Division Chief MEO032 53.42 56.36 59.46 62.72 66.18 0490 Network Systems Administrator MEO490 48.10 50.75 53.54 56.49 59.60 0443 Payroll Systems Analyst MEO443 43.99 46.41 48.96 51.65 54.49 0098 Permit & Plan Check Manager MEO098 58.44 61.66 65.05 68.62 72.40 0209 Permit & Plan Check Supervisor MEO209 41.43 43.71 46.11 48.65 51.33 *PER RESOLUTION 2016-75 ADOPTED ON 11/07/16, RESOLUTION 2016-76 ADOPTED 12/19/16, RESOLUTION 2017-06 ADOPTED 01/17/17 AND RESOLUTION 2017-11 ADOPTED 03/20/17 Item 6. - 9 HB -48- DRAFT MEO Salary Schedule - Hourly Rate 2.0% Effective 9-24-16 *Modified 11/07/16 **Modified 12/19/16 ***Modified 01/17/17 ****Modified 03/20/17 Job No Job Description Pay Grade A B C D E 0453 Personnel Analyst MEO453 36.20 38.19 40.29 42.50 44.85 0060 Personnel Analyst Principal MEO060 45.32 47.81 50.44 53.21 56.14 0464 Personnel Analyst Senior MEO464 41.21 43.48 45.88 48.40 51.07 0099 Plan Check Engineer MEO099 49.33 52.04 54.90 57.93 61.11 0444 Planning Manager MEO444 53.69 56.65 59.75 63.05 66.51 0625 Police Admin Division Srvcs Mgr MEO625 58.44 61.66 65.05 68.62 72.40 0594 Police Admin Services Manager MEO594 46.70 49.27 51.97 54.84 57.84 0022 Police Communications Manager MEO022 41.86 44.16 46.58 49.14 51.85 0094 Police Records Administrator MEO094 41.86 44.16 46.58 49.14 51.85 0028 Principal Accountant MEO028 42.69 45.04 47.51 50.13 52.88 0096 Principal Civil Engineer MEO096 55.89 58.96 62.20 65.62 69.23 0072 Principal Electrical Inspector MEO072 40.01 42.22 44.53 46.99 49.57 0076 Principal Inspector Plb/Mech MEO076 40.01 42.22 44.53 46.99 49.57 0482 Principal Librarian MEO482 39.81 42.00 44.31 46.75 49.32 0074 Principal Planner MEO074 51.07 53.88 56.84 59.98 63.27 0579 Project Manager MEO579 46.22 48.77 51.45 54.27 57.26 0037 Project Manager Assistant MEO037 39.61 41.78 44.08 46.51 49.07 0496 Public Safety Systems Manager MEO496 54.50 57.50 60.66 63.99 67.51 0497 Public Safety Systems Supv MEO497 52.63 55.53 58.58 61.79 65.20 0839 Real Estate & Project Manager MEO839 46.22 48.77 51.45 54.27 57.26 0054 Risk Manager MEO054 53.15 56.08 59.16 62.41 65.84 0519 *Safety/Loss Prevention Analyst MEO519 41.21 43.4 8 45.88 48.40 51.07 0069 Senior Civil Engineer MEO069 47.18 49.77 52.50 55.39 58.43 0484 Senior Deputy City Attorney MEO484 61.44 64.82 68.38 72.13 76.11 868 ****Senior Finance Analyst MEO868 43.95 46.37 48.91 51.60 54.44 0499 Senior Info Systems Analyst MEO499 47.87 50.51 53.28 56.21 59.30 0077 Senior Librarian MEO077 34.27 36.16 38.15 40.24 42.45 0036 Senior Planner MEO036 46.22 48.77 51.45 54.27 57.26 0575 Senior Sprvsr Cultural Affairs MEO575 39.03 41.17 43.43 45.82 48.34 *PER RESOLUTION 2016-75 ADOPTED ON 11/07/16, RESOLUTION 2016-76 ADOPTED 12/19/16, RESOLUTION 2017-06 ADOPTED 01/17/17 AND RESOLUTION 2017-11 ADOPTED 03/20/17 xs -49- Item 6. - 10 DRAFT MEO Salary Schedule - Hourly Rate 2.0% Effective 9-24-16 *Modified 11/07/16 **Modified 12/19/16 ***Modified 01/17/17 ****Modified 03/20/17 Job No Job Description Pay Grade A B C D E 0578 Senior Sprvsr Human Services MEO578 39.03 41.17 43.43 45.82 48.34 0519 *Senior Risk Management Analyst MEO519 41.21 43.48 45.88 48.40 51.07 0034 Senior Traffic Engineer MEO034 47.18 49.77 52.50 55.39 58.43 0333 **Senior Trial Counsel MEO333 66.54 70.21 74.07 78.14 82.44 0457 Special Events Coordinator MEO457 32.94 34.75 36.66 38.68 40.80 0488 Street Maint Supervisor MEO488 41.65 43.93 46.35 48.90 51.59 0133 Supervisor, Prkng & Cmping Fac MEO133 39.03 41.17 43.43 45.82 48.34 0033 Transportation Manager MEO033 58.15 61.34 64.72 68.28 72.04 0051 Tree Maintenance Supervisor MEO051 41.65 43.93 46.35 48.90 51.59 0483 Utilities Manager MEO483 57.28 60.44 63.76 67.27 70.97 0487 Wastewater Supervisor MEO487 41.65 43.93 46.35 48.90 51.59 0052 Water Distribution Supervisor MEO052 41.65 43.93 46.35 48.90 51.59 0053 Water Production Supervisor MEO053 41.65 43.93 46.35 48.90 51.59 0056 Water Quality Supervisor MEO056 41.65 43.93 46.35 48.90 51.59 *Per Resolution 2016-75 adopted on 11/07/16 the title of Safety/Loss Prevention Analyst was changed to Senior Risk Management Analyst. **Per Resolution 2017-76 adopted on 12/19/16 the position of Senior Trial Counsel was created. ***Per Resolution 2017-06 adopted on 01/17/17 the title of Information Systems Communication Manager was changed to Information Technology Manager-Infrastructure; the title of Business System Manager was changed to Information Technology Manager-Systems; and the title of Information Systems Computer Operations Manager was changed to Information Technology Manager-Operations. ****Per Resolution 2017-11 adopted on 03/20/17 the position of Senior Finance Analyst was created. *PER RESOLUTION 2016-75 ADOPTED ON 11/07/16, RESOLUTION 2016-76 ADOPTED 12/19/16, RESOLUTION 2017-06 ADOPTED 01/17/17 AND RESOLUTION 2017-11 ADOPTED 03/20/17 Item 6. - 11 xs -50- CITY OF HUNTINGTON BEACH INTER-DEPARTMENTAL COMMUNICATION HUMAN RESOURCES TO: PERSONNEL COMMISSION FROM: MICHELE WARREN, DIRECTOR OF HUMAN RESOURCES SUBJECT: CREATION OF SENIOR FINANCE ANALYST JOB CLASSIFICATION DATE: FEBRUARY 22, 2017 The Finance Department is seeking to create the job classification of SENIOR FINANCE ANALYST. The Budget division of the Finance department desires to create a lead analyst position at the advanced journey level to support the Finance Manager-Budget in the preparation and administration of the annual budget. The job emphasis of the recommended classification is to complete the work performed in preparing, implementing, and administering the City’s annual and capital improvement budgets. Further, the proposed classification will support the city-wide budget development process by assisting the Finance Manager-Budget in the work required of Finance to coordinate, collaborate, guide and direct other department analysts in the preparation, evaluation and analysis of department budget documents, worksheets, expenditure requests and related items. Currently, the department is allocated the classification of Senior Administrative Analyst in support of the budget preparation process. However, the Senior Administrative Analyst classification does not meet the department’s needs in that it is a general advanced journey-level analyst classification designed to provide professional support to a designated department. Moreover, the Senior Budget Analyst job classification is significantly outdated and as currently written, reflects duties performed by an incumbent reporting directly to the then City Administrator. This classification does not comport with the current structure or needs of the department. The classification will be FLSA exempt – Learned Professional and represented by the Management Employees Organization (MEO). The pay range was established after taking into consideration pay differentials for other comparable reporting relationships. The City and MEO have met and conferred regarding the creation of this new job and its inclusion into the classification plan. The recommendation presented is based upon a review of similar external jobs. At this time, staff requests the Personnel Commission to approve staff’s recommendations in accordance with Personnel Rule 12 regarding amendments to the City’s Classification Plan. STAFF RECOMMENDATION Proposed Job Class Title/Job Code: Senior Finance Analyst MEO0868 Pay Range: $43.95 - $46.37 - $48.91 - $51.60 - $54.44 Action: Create the classification and add it to the City’s classification plan Affected Employees: None Att: Senior Finance Analyst Job Class Specification Cc: Lori Ann Farrell, CFO Scott Smith, MEO President Aaron Peardon, OCEA Representative xB -51- Item 6. - 12 Financial Impact : This action will result in a $115,000 increase to the three-year contract with Hinderliter, de Llamas and Associates which ends on June 30, 2017. The contract amendment will cover increased costs resulting from sales and use tax audits performed by HDL that have resulted in $685,000 in increased sales tax revenue to the City. The contract with HDL includes a 15 percent audit recovery fee for misallocations identified by HDL that are subsequently corrected by the State Board of Equalization (BOE) for return to the City. Payments currently owed to HDL for successful audit recoveries total approximately $103,000. A contract amendment of $115,000 will cover this cost, plus any additional audit recovery fees through the contract end date. Dept. ID FN17-004 Page 1 of 3 Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer SUBJECT: Approve and authorize execution of Amendment No. 2 with Hinderliter, de Llamas and Associates in an amount not to exceed $115,000 for Sales and Use Tax Auditing Services and increase Appropriations and Professional Services Authority accordingly Statement of Issue : Approval is requested to amend the three-year professional services contract with Hinderliter, de Llamas and Associates (HDL), the City's Sales and Use Tax Auditing consultant, from $100,000 to $215,000 to cover additional payments owed to HDL for their sales and use tax analysis and auditing services. Pursuant to the contract, HDL is entitled to a 15 percent revenue recovery fee for additional revenue received by the City due to HDL's in-depth sales and use tax audits. The Finance Department's FY 2016/17 General Fund budget and Professional Services Authority will also need to be amended by an equal amount to cover the payments. Increased sales tax revenue resulting from these audits will more than offset this cost. There is sufficient revenue to support this request due to the increased sales tax revenue received by the City due to HDL's audits and subsequent corrections approved by the BOE. The Finance Department's FY 2016/17 General Fund Budget and Professional Services Authority will also need to be increased by $115,000 to cover these payments. The remainder of the increased sales and use tax revenue generated by HDL will help ensure a balanced budget this year. Recommended Action : A) Approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Agreement Between the City of Huntington Beach and Hinderliter, de Llamas and Associates for Sales and Use Services;" and, B) Increase Appropriations and Professional Services Authority in the Finance Department Accordingly. Item 7. - 1 HB -52- Dept. ID FN17-004 Page 2 of 3 Meeting Date: 3/20/2017 Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis : The City of Huntington Beach's FY 2016/17 Adopted Budget reflects $39 million in projected sales and use tax revenue. This revenue is deposited into the City's General Fund and it helps to finance core services such as public safety, recreation, library, public works and other community programs. Ensuring that the City receives its fair share of funding is essential as each dollar helps fund these core public services. The State Board of Equalization determines all sales and use tax allocations to local jurisdictions. While the great majority of sales and use tax revenues remitted to local governments are correct, occasionally mistakes do occur. To ensure allocations made by the State Board of Equalization (BOE) are as accurate as possible, the City entered into a three-year professional services contract with Hinderliter, de Llamas and Associates for the period of June 1, 2014, through June 1, 2017, after a competitive Request for Proposals (RFP) process. The contract is comprised of two parts: 1) An annual fee of $9,600 for comprehensive sales and use tax analyses and reports with detailed taxpayer and industry specific information; and, 2) A sales and use tax audit service that identifies misallocations by the State BOE and then petitions the BOE for corrections on the City's behalf. The audit recovery service has a 15 percent fee for all revenue recovered, up to a maximum of eight quarters, due to the extensive work and documentation it entails, as well as testifying before the BOE if needed. Currently, 344 cities utilize HDL to assist in the tracking, monitoring and auditing of sales and property tax allocations by the State. As sales and use tax information is proprietary pursuant to State law, jurisdictions choosing to hire a specialized auditing firm to verify the tax allocations made by the State must have City Council authorization allowing the firm access to the City's sales and use tax information. HDL extensively analyzes sales and use tax data to ensure BOE allocations are correct on their clients' behalf. This specialized firm identifies and corrects various tax allocation errors including, but not limited to the following: • Sales misreported as "use tax" transactions. • "Point of Sale" revenues misreported to administrative offices or other locations. • Misallocations occurring because sales from multiple retail outlets, order desks, or offices are credited to a single location. • Misallocations due to jurisdiction miscoding. • "Use tax" transactions exceeding $500,000 not allocated to the host agency. • Construction-related sales listed as "installation" rather than "over-the-counter". • Warehouses that function as a "point of sale" but not identified as such. • Misallocations that occur due to zip code, boundary, or jurisdictional discrepancies. HDL has identified businesses whose sales and use tax remittances to the State were erroneously allocated to other jurisdictions due to one or more of the aforementioned reasons. The requested contract amendment is to compensate HDL for audit activities that resulted in $685,000 in additional revenues to the City. Of this amount, a large portion ($655,000) relates to a single vendor and the misapplication of sales tax rules (versus use tax rules) for a large computer products supplier located in another city. In this case, the BOE ruled that large sums of revenue were misallocated over several years and must be re-distributed to other cities. Pursuant to the contract, HDL's audit recovery fee is 15 percent of new sales and use tax revenue received by the City, for up to eight quarters, resulting from their successful audits. Thus, the recovery of $685,000 in revenues results in the need to raise the contract by $115,000 to pay HDL its audit recovery fees ($103,000), and any additional potential recoveries through June 30, 2017. xs -53- Item 7. - 2 Strategic Plan Goal : Strengthen economic and financial sustainability. Dept. ID FN17-004 Page 3 of 3 Meeting Date: 3/20/2017 Please note that extensive procedures are in place by the City's Finance Department to ensure that HDL is only paid for additional tax revenue received by the City attributable to their efforts. Staff has created an internal six step procedure to confirm amounts HDL submits for payment including obtaining copies of State Board of Equalization letters to HDL confirming BOE approval of their audit findings made on our behalf (Attachment 2 — Redacted Sample). In addition, pursuant to the contract, payments are not made to HDL until the increased sales tax revenue is actually received by the City as a result of their audit work, which is also confirmed by the Finance Department by reviewing proprietary sales and use tax reports provided by the BOE. The Finance Department's FY 2016/17 Adopted Budget in the General Fund and Professional Services Authority will also need to be amended by $115,000 to cover the required contract amendment. The City has received $685,000 in additional General Fund revenue due to the petitions filed on our behalf by HDL; hence, sufficient funds are available to support this request. Staff recommends that the remainder of the revenue recovered by HDL remain in the General Fund to help ensure a balanced budget, as there appears to be a slight weakening in certain categories of General Fund revenue through the first half of the fiscal year. nvironmental Status : Not applicable. Attachment(s): 1. Amendment No. 2 to Agreement between the City of Huntington Beach and Hinderliter, de Llamas and Associates for Municipal Sales Tax and Use Services. 2. Sample of State Board of Equalization Letter Announcing HDL Audit Review Decision Regarding a Huntington Beach business. Item 7. - 3 xs -54- xs -55- Item 7. - 4 Item 7. - 5 HB -56- xB~ -57- Item 7. - 6 Dept. ID ED 17-07 Page 1 of t Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kellee Fritzal, Deputy Director, Business Development SUBJECT: Approve and authorize execution of a three-year Professional Services Contract with Keyser Marston Associates, Inc., in the amount not exceed $180,000 for Economic Analysis Services Statement of Issue : The City requires economic analysis services for various development pro forma and residential projects. Staff i s requesting approval of a contract with Keyser Marston Associates, Inc. to perform these services on an as-needed basis. Financial Impact : Approval of this action will not require an appropriation. There are sufficient funds of $45,000 in account 23380101.69325 in the Fiscal Year 2016/17 budget to fund services for this year's expenditures. The total contract i s not to exceed $180,000, for three (3) year term. Appropriations will be requested in subsequent fiscal year budgets from accounts 23380101.69325 and 35280301.69365. Recommended Action : Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract between the City of Huntington Beach and Keyser Marston Associates, Inc. for Economic Analysi Services" in the amount not to exceed $180,000 over a three-year period. Alternative Action(s): Do not authorize the contract and direct staff accordingly. Analysis : The Office of Business Development requires a variety of economic analysis services for projects on an as-needed basis. During the term of the contract, the firm Keyser Marston Associates, Inc. will provide technical and financial analysis for such projects a s: • Sales Tax Sharing Agreements • State Density Bonus Analysis • State and Federal required monitoring services for restrictive rental properties • Annual State mandated Housing Compliance Report • Subsidy Layering Analysis for HOME-assisted projects and financial gap analyses for project assisted with LMIHAF or Inclusionary In-Lieu fees • Special projects on an a s needed basis Item 8. - 1 xB -58- Strategic Plan Goal : Strengthen economic and financial sustainability Dept. ID ED 17-07 Page 2 of 2 Meeting Date: 3/20/2017 On April 25, 2016, Office of Business Development released a Request for Proposals (RFP) to solicit proposals from qualified consultants for as-needed economic analysis services. The following five firms responded to the RFP: • GRC Associates, Inc. • Keyser Marston Associates • Kosmont Companies • Rosenow Spevacek Group Inc. (RSG) • Tierra West Advisors, Inc. Each proposal was reviewed and scored by a panel comprised of staff from Administration, Business License, Public Works Department and the Office of Business Development based on the criteria outlined in the RFP. Consideration in the evaluation of submittals included: successful implementation and monitoring of City-financed projects of Successor Agency and Housing Authority; ability to commit key personnel; ability to meet strict deadlines; and a competitive fee schedule. The ability to best provide services, consultant experience and meeting the three components of the RFP were ultimately the determining factor in awarding the bid to Keyser Marston Associates, Inc. Accordingly, after evaluating the responses, Staff concluded that Keyser Marston Associates, Inc. best demonstrated the ability to provide the most comprehensive services at a competitive price. Keyser Marston Associates, Inc. will provide assistance a s directed and will augment Office of Business Development on projects which require complex financial analysis. Based on their expertise in the field, knowledge of Huntington Beach, and understanding of the City's request and competitive rates, staff recommends approval of the Professional Services Contract with Keyser Marston Associates, Inc. for a total not to exceed $180,000 for a three (3) year term. Environmental Status : Not Applicable Attachment(s): 1. Professional Services Contract Between the City of Huntington Beach and Keyser Marston Associates, Inc. 2. Professional Service Review xs -59- Item 8. - 2 Item 8. - 3 HB -60- HB -61- Item 8. - 4 Item 8. - 5 HB -62- HB -63- Item 8. - 6 Item 8. - 7 HB -64- HB -65- Item 8. - 8 Item 8. - 9 HB -66- xB~ -67- Item 8. - 10 Item 8. - 11 HB -68- HB -69- Item 8. - 12 Item 8. - 13 BB -70- HB -71- Item 8. - 14 HB -72- Item 8. - 15 xB~ -73- Item 8. - 16 Item 8. - 17 HB -74- xB~ -75- Item 8. - 18 Item 8. - 19 HB -76- HB -77- Item 8. - 20 Item 8. - 21 xs -78- xB~ -79- Item 8. - 22 Item 8. - 23 HB -80- HB -81- Item 8. - 24 Item 8. - 25 HB -82- Financial Impact : Approve a $450,000 increase in appropriations in the FY 2016/17 Revised General Fund Budget for the City Attorney's Office. Approve Professional Services Authority related to legal services by $450,000. According to the Finance Department, there appears to be sufficient Citywide Vacancy Savings to accommodate this increase in costs. This increased expenditure will be re-evaluated during the Mid-Year Budget Process for FY 2016/17. Strategic Plan Goal : Not Applicable = Administrative Item Dept. ID CA-17-001 Page 1 of 1 Meeting Date: 3/20/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/20/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Michael E. Gates, City Attorney PREPARED BY: Michael E. Gates, City Attorney SUBJECT: Authorization for the City Attorney to enter into Amendment No. 1 to Agreement with AlvaradoSmith, and amend the Budget and Professional Services Authority accordingly Statement of Issue : The City entered into an Attorney Services Agreement with AlvaradoSmith on January 3, 2017, to provide specialized legal services involving complex eminent domain litigation with a looming trial date. This agreement provided for compensation in an amount not-to-exceed $90,000. Additional services are required, necessitating an amendment to the Agreement in an additional not-to-exceed amount of $450,000. Recommended Action : Authorize the City Attorney to enter into "Amendment No. 1 to Attorney Services Agreement with AlvaradoSmith," and amend the Budget and Professional Services Authority accordingly. Alternative Action(s): Do not authorize the City Attorney to enter into "Amendment No. 1 to Attorney Services Agreement with AlvaradoSmith." Analysis : The City is currently using the services of AlvaradoSmith to assist with eminent domain complex litigation scheduled for trial in April. Because of the specialized nature of litigation, the continued use of AlvaradoSmith is necessary to defend the City. Environmental Status : Not Applicable xB -83- Item 9. - 1 Financial Impact : If the City does not re-establish the collection of PEG fees from our cable providers, the City could lose the PEG fees that are remitted to PCTA quarterly and are used to enhance access for our residents to government and educational programming and access to City Council meetings and other government services. Dept. ID AD-17-008 Page 1 of 2 Meeting Date: 3/6/2017 CITY OF HUNTINGTON BEACH REQUEST FOR . CITY COUNCIL ACTION MEETING DATE: 3/6/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Antonia Graham, Assistant to the City Manager SUBJECT: Approve for introduction Ordinance No. 4130 re-establishing Fees for State Franchised Video Service Providers as part of the City's membership on the joint powers authority of the Public Cable Television Authority (PCTA) Statement of Issue : As part of our membership on the joint powers authority of the Public Cable Television Authority (PCTA), every ten (10) years the City must approve an Ordinance that reauthorizes local governments to establish and collect Public, Educational, and Government Access (PEG) fees from a cities' cable and video TV operators. The City Council previously adopted Ordinance No. 3767 on April 16, 2007. Recommended Action : Approve for introduction Ordinance No. 4130, "An Ordinance of the City of Huntington Beach Re- Establishing Fees for State Franchised Video Service Providers." Alternative Action(s): Do not approve the attached Ordinance, which would mean the City may not be able to collect the State Franchise fees for Public, Education, and Government Access (PEG) and direct staff accordingly. Analysis : Local governments have traditionally received compensation for the use of the public right-of-way by cable television companies for the provision of video services in a community. Currently, the City of Huntington Beach receives 5% of the gross revenues from Frontier Communications (formerly Verizon) and Spectrum/Charter (formerly Time Warner Cable) through its membership in the Public Cable Television Authority (PCTA). PCTA is a joint powers authority that includes the cities of Fountain Valley, Stanton, and Westminster. Franchise free revenues received by the City of Huntington Beach totaled $3,037,641.29 in calendar year 2016; these funds are deposited quarterly into the General Fund. Federal and California law prohibits the collection of franchise fees on Internet or telephone services provided by cable television companies. Item 10. - 1 xB -84- Strategic Plan Goal : Improve quality of life Dept. ID AD-17-008 Page 2 of 2 Meeting Date: 3/6/2017 Federal law also allows for local franchise authorities to negotiate additional revenues from cable operators for the support of PEG access channels such as HBTV-3. Typical contemporary franchise agreements establish additional funding for local cable companies to provide capital and operational support for PEG access through production studios, video equipment, and production operational support. The existing franchise agreements with Frontier Communications and Spectrum/Charter do not currently require PEG access channel support with the exception of public access channel management. In 2016, PCTA received approximately $617,000 in PEG fees. In September 2006, then Governor Schwarzenegger signed AB 2987, Digital Infrastructure and Video Competition Act of 2006 (DIVCA), establishing state franchising of wireline video service providers. This law allows competitive video service providers, including local telephone companies seeking to provide service, to obtain franchise directly through the state starting April 2007. This law also contains provisions for the conversion of incumbent cable television service providers to statewide franchises. DIVCA Section 5870 states that the fee to support PEG channel facilities "may be reauthorized upon the expiration of the state franchise," but does not explicitly require local agencies to reauthorize these fees via ordinance. Because Section 5870 refers to an ordinance elsewhere — and because substantial funding could be lost unless the 1% fee is reauthorized - Rutan & Tucker (the firm that represents PCTA) has advised PCTA to proceed with the reauthorization via an ordinance, and also encourages each PCTA member city to establish a similar ordinance. The ordinance will become effective 30 days following adoption. Failure to take such action may result in the loss of PEG revenue. The 1% PEG support fee will continue be used to offset PCTA expenditures on government access programming and/or augment additional government access programming. At any given time, the PCTA Board could vote on directing the PEG funds directly to each member city as opposed to the current practice. Environmental Status : Not applicable. Attachment(s): 1. Ordinance No. 4130, "An Ordinance of the City of Huntington Beach Re-Establishing Fees for State Franchised Video Service Providers" xB -85- Item 10. - 2 Item 10. - 3 HB -86- HB -87- Item 10. - 4 Item 10. - 5 xs -88- xB~ -89- Item 11. - 1 Item 11. - 2 HB -90-