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HomeMy WebLinkAbout2017-05-01 Agenda Packet FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, May 01, 2017 CITY COUNCIL/PUBLIC FINANCING AUTHORITY CITY OF HUNTINGTON BEACH 4:00 PM - Study Session 6:00 PM - Regular Meeting Council Chambers - 2000 Main Street Huntington Beach, CA 92648 http://www.huntingtonbeachca.gov MAYOR AND CITY COUNCIL BARBARA DELGLEIZE Mayor MIKE POSEY PATRICK BRENDEN Mayor Pro Tem Councilmember JILL HARDY WILLIAM O’CONNELL Councilmember Councilmember ERIK PETERSON LYN SEMETA Councilmember Councilmember 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 W ednesday 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. 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, please silence your cell phones and pagers HB -1- 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, blue 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. HB -2- -1- City Council/PFA Agenda – Monday, May 01, 2017 FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, May 01, 2017 CITY COUNCIL/PUBLIC FINANCING AUTHORITY CITY OF HUNTINGTON BEACH 4:00 PM - Study Session 6:00 PM - Regular Meeting Council Chambers - 2000 Main Street Huntington Beach, CA 92648 http://www.huntingtonbeachca.gov MAYOR AND CITY COUNCIL 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 1. CalPERS Discount Rate Change - Representatives from CalPERS will provide a presentation on the CalPERS Discount Rate Change and impacts to Huntington Beach. 2. Mid Year Budget Review – Presentation by the Finance Department regarding the Fiscal Year 2015/16 Audit; current FY 2016/17 projected budget performance; and FY 2017/18 preliminary budget outlook. RECESS TO CLOSED SESSION Mayor Delgleize to Announce: 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 HB -3- -2- City Council/PFA Agenda – Monday, May 01, 2017 Beach Firefighters' Association (HBFA), Huntington Beach Police Officers' Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). CLOSED SESSION 3. Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Huntington Beach Firefighters’ Association (HBFA), Huntington Beach Police Officers’ Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). 4. Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: George and Kathleen Pickett v. City of Huntington Beach/Steven Tilton, Orange County Superior Court Case No. 30-2014- 00754342. 5. Pursuant to Government Code §54956.9(d)(2) the City Council shall recess into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, one (1). 6. Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Michael Reilly vs. City of Huntington Beach, WCAB Case Nos. ADJ3570290; ADJ4308567; ADJ4177231; ADJ3580618; ADJ612776 and ADJ9226122; Claim Nos. COHB-90-0107; 94-0030; 96-0070; 97-0081; 98-0012 and 13-0272. 7. Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Kevin Jackson vs. City of Huntington Beach, WCAB Case Nos. ADJ10152339; ADJ10153433 and ADJ2035586; Claim Nos. COHB-14-0168; 15-0282; and 16-0007. 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 - Girl Scout Troop #3337 INVOCATION -- Cantor Fran Chalin, Jewish Chaplain with Vitas Hospice and member of the Greater Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not intend to proselytize or HB -4- -3- City Council/PFA Agenda – Monday, May 01, 2017 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 Delgleize to present commendations to HB Nonstop, a local girls Under- 14 Extra soccer team and HB Wipeout, a local girls Under-12 Extra soccer team representing Huntington Beach AYSO Region 55, who both recently competed and won the Western States Championship. Mayor Delgleize to present the National Tourism Week Proclamation to Visit HB CEO Kelly Miller. Mayor Delgleize to proclaim National Safe Boating Week from May 20-26 and present proclamation to the US Coast Guard Auxiliary, Flotilla 62, from Huntington Harbour. 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 1. Citizens Academy Presentation CITY TREASURER'S REPORT 2. Receive and file the City Treasurer's March 2017 Quarterly Investment Summary Report Recommended Action: Receive and file the City Treasurer’s Quarterly Investment Report for March 2017, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. CONSENT CALENDAR 3. Approve and adopt minutes Recommended Action: Review and adopt the City Council/Public Financing Authority regular meeting minutes dated April 3, 2017, as written and on file in the office of the City Clerk. HB -5- -4- City Council/PFA Agenda – Monday, May 01, 2017 4. Award and authorize execution of a construction contract with All American Asphalt in the amount of $416,344 for the Operetta Drive & Opera Lane Rehabilitation Project, CC-1543 Recommended Action: A) Accept lowest responsive and responsible bid submitted by All American Asphalt in the amount of $416,344; and, B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. 5. City Council Position on Legislation Pending Before the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) Recommended Action: A) Approve a City position of Support in concept on House Resolution No. 472 – Safe Recovery and Community Empowerment Act; and, B) Approve a City position of Support on Senate Constitutional Amendment 1: No Secure Choice Ballot; and, C) Approve a City position of Support on Senate Constitutional Amendment 8: California Rule; and, D) Approve a City position of Support on Senate Constitutional Amendment 10: Pension Transparency; and, E) Approve a City position of Support on SB 32 (Moorlach) – Public Employees’ Pension Reform Act of 2018; and, F) Approve a City position of Support on SB 454 (Moorlach) – Retiree Healthcare Reform; and, G) Approve a City position of Support on SB 681 (Moorlach) – Local Pension Control; and, H) Approve a position of Oppose on AB 1129 (Stone) Coastal Structures Beach Access and Protection; and, I) Approve a position of Support on AB 629 (Harper) Alcoholic Beverage Licences: Art Galleries; and, J) Approve a position of Support on SB 242 (Skinner) PACE Consumer Protections; and, K) Approve a position of Oppose on AB 1250 (Jones-Sawyer) Counties and Cities: Contracts for Personal Services. HB -6- -5- City Council/PFA Agenda – Monday, May 01, 2017 ADMINISTRATIVE PUBLIC HEARING 6. Conduct Public Hearing for Annual Weed Abatement Program and authorize the Director of Public Works to proceed with abatement of public nuisance Recommended Action: A) Open a public hearing for any objections and protests to the proposed removal of weeds, refuse and rubbish; and, B) Authorize the Superintendent of Streets (Director of Public Works) to proceed with the abatement of said nuisance. COUNCILMEMBER ITEMS 7. Submitted by Mayor Delgleize and Councilmember Hardy - Establishment of a Huntington Beach Community Foundation (FOUNDATION) Recommended Action: Direct the City Attorney to prepare Articles of Incorporation and draft Bylaws for the Huntington Beach Foundation. Direct the City Manager's Office to file the appropriate paperwork with the Secretary of State. The initial development will call for the appointment of seven Directors of the Foundation, with the Articles of Incorporation allowing for amendments to the total number of directors. 8. Submitted by Councilmember O'Connell - Request for Performance Review of the overall Entitlement and Permitting Process Recommended Action: Establish an Ad-Hoc City Council Committee to work with the City Manager to define a scope of work for a performance review of the zoning entitlement and building permit review process city-wide. Return to the City Council with a scope of work and proposed budget. 9. Submitted by Councilmember O'Connell - Consider a Pilot Program utilizing organic pesticides in Central Park West Recommended Action: Direct Public Works to perform an organic pesticide pilot project in Central Park West for a one year duration. Provide updates to the City Council in six months and one year, with recommendations for updating the Integrated Pest management Program utilizing the results of the pilot project. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT HB -7- -6- City Council/PFA Agenda – Monday, May 01, 2017 The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, May 15, 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 -8- Dept. ID CT 17-003 Page 1 of 1 Meeting Date: 5/1/2017 Statement of Issue: Receive and File the City Treasurer’s Quarterly Investment Report for March 2017, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable Recommended Action: Receive and file the City Treasurer’s Quarterly Investment Report for March 2017, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or Critique Quarterly Report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Strengthen economic and financial sustainability. Attachment(s): 1. Treasurer’s Quarterly Investment Report for March 2017 2. Treasurer’s PowerPoint Presentation for March 2017 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/1/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and file the City Treasurer's March 2017 Quarterly Investment Summary Report HB -9-Item 2. - 1 City of Huntington Beach Treasurer's Investment Report Quarter Ending: March 2017 Prepared by: Alisa Cutchen, CCMT, CPFIM - City Treasurer 1] Page HB -10-Item 2. - 2 Economic and Market Overview: Market Summary Federal Funds Rate 10-Year Treasury 2.45% 2.36% 2.40% S&P 500 2,278.87 2,363.64 2,362.72 DOW 19,864.09 20,812.24 20,663.22 January 31, 2017 February 28, 2017 March 31, 2017 0.50 - 0.75 % 0.50 - 0.75 % 0.75- 1.00% Jan - Mar % Change 33.33% -2.04% 3.68% 4.02% The Federal Open Market Committee (FOMC) met in March to discuss the current state of the economy and to examine potential future interest rate hikes before year end. They concluded that in light of realized and expected labor market and inflation gains, the Committee would raise the target range for the federal funds rate to 3/4 to 1 percent. US inflation, as measured by the core PCE price index, was unchanged at 1.8% in February but still below the Federal Reserve's 2% target, Furthermore, the Committee stated that they will carefully monitor actual and expected inflation developments as the year progresses to determine the timing and size of future adjustments to the federal funds rate. Fixed Income/Equity Markets: The yield on the 10-year U.S. Treasury finished the quarter at 2.40%, down slightly from 2.45% from the previous quarter. The S&P 500 and the DJIA increased by 5.53% and 4.56% respectively, for the same time period. In the first quarter of 2017, equity markets posted strong gains to close out the quarter while the bond markets slightly lagged behind. This increase in the equity markets may be partially attributed to the continued growth of economic activity as compared to the modest pace seen in the second half of last year. Employment: The U.S. gained 98,000 jobs in March with the largest increases in professional and business services, followed by education and health services. According to the labor department, the unemployment rate decreased from 4.7% to 4.5% quarter over quarter as the economy continued to create new jobs. As a result, the labor participation rate for March increased to 63.0%, up slightly from 62.7% in the previous quarter. Over the past 3 months, job gains have averaged 178,000 per month. 2 'Page HB -11-Item 2. - 3 Unemployment rate goinins.L.0% : By selected industies re; temusandA Mining/logging 11 Construction Manufacturing Wholesale trade -0.41 11 Retail trade -29.7 Transportation and warehousing .3.5 Utilities -0.71 Information -3111 Financial activities 9 Professional and business services Education and health services 16 Leisure and hospitality 1=19 Government '08 '09 10 '11 '12 13 '14 '15 '16 '17 Monthly jobs growth i rilotisoros '013 'Og '10 11 12 '13 '14 '15 16 17 111 liblilIALICIIII[111111!1111111111111[11116,11 pir r Mar: 98 O dd 000 400 200 0 -200 -400 -GOO -800 -tO00 At a glance: the March jobs report 56 Source: Bureau of Labor Statistics 3 iPage HB -12-Item 2. - 4 Portfolio Overview: As of March 31, 2017: % of YTM Investment Type Market Value Book Value Portfolio 365-day Policy Limit Federal Agency Issues 141,104,529 142,513,877 67% 1.39% None Local Agency Investment Fund (LAIF) 21,570,000 21,570,000 10% 0.82% $65 million Medium Term Notes — IBRD 4,972,900 4,985,049 2% 1.11% 10% Corporate Bonds 44,517,145 44,642,045 21% 1.44% 30% Total Portfolio $212,164,574 $213,710,971 100% 1.33% As of March 31, 2017 the market value of the City's investment portfolio was approximately $212.1 million, with a book value of $213.7 million. The portfolio is invested in only those investments allowable by state regulations and the City's investment policy. Such investments are purchased to meet the portfolio objectives of preservation of principal, maintenance of sufficient operating liquidity, and to attain a market rate of return throughout budgetary and economic cycles, in that order of absolute priority. Portfolio Composition: Investments by Type as of March 31, 2017 Wage HB -13-Item 2. - 5 2017 Monthly Earnings History $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00 Currently, funds within this portfolio are invested in federal agency securities, corporate bonds, the international Bank for Reconstruction and Development ("IBRD") and the State of California's pooled account (Local Agency Investment Fund "LAIF"). The four federal government sponsored entities (agencies) whose bonds the City purchases are: Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac), Federal National Mortgage Association (FNMA/Fannie Mae) and Federal Farm Credit Bank (FFCB/Farm Credit). All federal agency bonds purchased by the City are rated "AAA" by Moody's, as are the 1BRD bonds. Corporate bonds are obligations of corporations. All corporate bonds are "A" rated or its equivalent or better, per the City's investment policy and state of California regulations. LA1F offers local agencies the opportunity to participate in a major portfolio with overnight liquidity managed by the State of California Treasurer's Office. Please see http://vvww.treasurercasiov/pmia-laif/laitaso for more information as well as the "State of California Pooled Money Investment Account Market Valuation" (included in this report) for month end data. LAIF has been utilized for the liquidity portion of the City's portfolio as the yield received at this time is greater than that of similar liquid investments such as money market accounts, short-term Treasury Bills, and commercial paper. Portfolio Earnings and Performance: K. 'c e• 4. '96 10 .I r 6% r t('• (01i.9 (04\ e ,kiv) e°0 .4- oz- et .." 4 t. e, NII" 0 A /A A 1. (0'2 is.``' cr, (c) 1.• I, 1, ,z,i), 1, N. "v 4 1, 155N'' 1, 1, 155 1,1° 5 1 Page HB -14-Item 2. - 6 Monthly investment earnings for March 2017 were $228,501. The monthly effective rate of return was 1.26%, with a fiscal year-to-date effective rate of return of 1.22%. This compares favorably to the previous year's monthly earnings of $187,834 and monthly effective rate of return of 1.10% for the same time period in 2016. These earnings are utilized to offset taxpayer funds for city operating expenses, capital projects, debt repayment and other uses. Portfolio Earnings Current Year Month End 3/31/17 $ 228,501 FY 2016/2017 $ 1,255,090 Current Budget $ 140,000 $ 840,000 Last Year Actual $ 187,834 $ 1,071,373 Effective Rate of Return 1.26% 1.22% Benchmark* 1.27% * 2-year Constant Maturity Treasury (CMT) rate With the sharp increase in the interest rates over the past few months, the 2-year Treasury rate climbed to 1.27% at the end of March. As this increase was fairly rapid, the return on the portfolio as a whole at 1.26% is just slightly under this benchmark rate for the month. With the increase in interest rates, it is anticipated that the portfolio will experience a similar increase in the rate of return over time; however, it must be noted that as securities typically remain in the portfolio until they are called or mature, changes in the portfolio yield will lag interest rate changes in the market. Portfolio Activity: (For details of portfolio activity, please see the Sympro reports attached entitled "Activity Report') Monthly Activity: For the month ending March 31, 2017, $5 million was transferred to LAIF from the operating account over the month. Quarterly Activity: For the quarter ending March 31, 2017, a total of $5 million in federal agency securities were purchased with $5 million in federal agencies called or matured. An interest deposit into LAIF of $45,989 was made during the quarter. Compliance: The portfolio is in conformity with all relevant State regulations and the City's Investment Policy statement as approved by the City Council on November 5, 2016. The investment program herein shown provides sufficient cash flow liquidity to meet the next six months' obligations. 61 Page HB -15-Item 2. - 7 Additional Information: Retirement Plan Information as of December 31, 2016: (Due to the delay in statement receipt, information is from previous quarter.) City of Huntington Beach - Pension/Trust Plans - Market Value Summary Deferred Compensation Plan Summary Information as of December 31, 2016 Reporting is Quarterly Beginning Balance (7-1-16) Contributions Distributions/ Earnings Other Fees/ Transfers (change in Adjustments value) Gain/Loss/ Interest Self Directed Option Balance (Nationwide Only) Ending Balance (9-30-16) ICMA Retirement Corporation (457 Plan) $42,665,682 $691,900 ($742,063) $1,373,158 ($2,952) $43,985,725 Nationwide Retirement Solutions (457 Plan) $75,259,598 $1,053,664 ($916,085) $2,045,622 ($1,100) $1,042,726 $78,484,425 Total Deferred Compensation Plan Balances $117,925,280 $1,745,564 ($1,658,148) $3,418,780 ($4,052 $122,470,150 Reporting is Quarterly CalPERS Retiree Medical Trust Account City of Huntington Beach Retiree Medical Trust Summary Information as of December 31, 2016 Beginning Contributions Distributions/ Investment Other Fees/ Ending Balance Transfers Earnings Adjustments Balance (7-1-16) (change in (9-30-16) value) $22,316,243 $76,000 $0 $472,156 ($4,842) $22,859,557 City of Huntington Beach Supplemental Pension Trust Summary Information (monthly reporting, not quarterly) as of December 31, 2016 Reporting is Monthly Beginning Employer Balance Contributions (9-1-16) Interest & Realized Dividends Gain! Loss Plus Net Accrued Income Change in Unrealized Gains / Losses Other Trust Fees/ Adjustments Ending Balance (9-30-16) US Bank Supplemental Pension Trust Account $47,117,372 $822,000 $107,339 $53,139 ($29,809) ($6,266) $48,063,775 City of Huntington Beach PARS 115 Trust Summary Information as of December 31, 2016 Beginning Employer Earnings Expenses Distributions Transfers Ending Balance Contributions Balance (12-1-16) (12-31-16) Reporting is Monthly PARS Post Employment Benefits Trust Account $2,516,067 $0 $30,682 $0 $0 $0 $2,546,749 7 1Page HB -16-Item 2. - 8 Bond Reserve Accounts - Balances as of March 31, 2017: Summary of Huntington Beach Bond Issue Reserve Accounts Reserve Account Investments As of March 31, 2017 Value as of Federal Money Market Bond Issue: Mar 31, 2017 LAIF Agency Issues Funds CAMP H.13. Pubic Financing Aulhority Lease ReAracing Bonds 2010 Series A H.B. Public Financing Authority (Capital Improvement Retinancing/Senior Cenbr) Bonds 2011 Series A Redevelopment Agency of H 2. - 1999 Tax Allocation Reforxing Bonds (1/3 of 1992) Redevelopment Agency of H.B. -2002 Tax Allocation Refuncing Bonds (213011992) N.B. Community Faclties District No. 1990-1 2001 Special Tax Bonds (GoidenivestEllis) HO. Commurtity Facilities DislatNo. 2090-1 2013 Special Tax Bonds (Grand Coast-Hyal9 LLB, Community Facilities DIstrict No. 2002-1 2092 Specie/ Tax Bonds McDonnell Centre Business Park) H.B. C (immunity Facilites District No. 2003-12013 Special Tax Bonds (Huntington Center - Bella Terra) TOTALS: $ 1,242,600,00 1,242,600.00 3,724,305.32 828,739.71 2,895,565.45 0.16 755,433.94 755,433.93 0.01 1,687,209.09 648,876.60 1,002,640.00 35,692.49 172,400.03 172,000.00 400.03 1,093,271.14 0.04 1,093,271.10 456,633.80 456,633.80 1,682,909.32 0.07 1,682,909.25 10,814,763 $ 2,861,684 $ 3,898,206 $ 1,278,693 $ 2,776,180 81 Page HB -17-Item 2. - 9 City of Huntington Beach 2000 Main St. Huntington Beach, City of HB Portfolio Management Portfolio Summary January 31, 2017 Investments Par Value Market Value Book % of Value Portfolio Term Days to Maturity YTM YTM 360 Equiv. 365 Equiv. Federal Agency Issues - Coupon 147,405,000,00 146,026,962.45 147,523,754.58 87.44 1,338 1,099 1.414 1.434 Local Agency Investment Funds 21,570,000,19 21,570,000.19 21,570,000.19 9.88 1 0.741 0.751 Medium Term Notes- IBRD 5,000,000,00 4,975,050.00 4,983,132.11 2.28 808 533 1.093 1.109 Corporate Bonds 44,500,000.00 44,529,815.00 44,662,091.73 20.42 1,154 537 1.418 1.438 Investments 218,475,000.19 217,101,827.64 218,738,978.61 100.00% 1,152 863 1.341 1.360 Cash and Accrued Interest Accrued Interest at Purchase 48,258.34 48,258.34 Subtotal 48,258.34 48,258.34 Total Cash and Investments 218,475,000.19 217,150,085.98 218,787,236.95 1,152 863 1.341 1.360 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return January 31 Month Ending 226,719.29 140,000.00 193,782.34 216,148,564.96 1.24% Fiscal Year To Date 798,894.87 560,000.00 693,355.14 201,749,705.88 1.18% Fiscal Year Ending 1,680,000.00 2,299,957.00 I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on November 7, 2016. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen, CITY TREASURER Reporting period 0110112017-01131/2017 Portfolio CITY AP Fur Dale: 04/1212017 - 15:33 PM (PRF_PM1 ) 72.0 Report Ver. 7.3.3b HB -18-Item 2. - 10 City of HB Portfolio Management Page 1 Portfolio Details - Investments January 31, 2017 CUSP Investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate YTM Days to Maturity S&P 365 Maturity Date Federal Agency Issues - Coupon 1.620 1.920 1.000 1.375 1.250 1.600 1.050 2.000 0.800 1.000 1.250 1.000 1.000 1.280 1.500 1.000 1.650 1.000 1.040 1.000 1.400 1.500 1.500 1.250 1.500 1.125 1.000 t950 2.050 1.750 3133 EG EV3 3133EG2L8 3130A3TA2 313378A43 3130A71,,W7 3130A8DC4 3130A8T94 313383VN8 3134G7U25 3134G7342 3134G9RN9 3134G9UY1 3134G9F93 3134G9E78 3134G9C54 3134 ,6'3335 3134GAUE8 3134GAE34 3136G2R58 3135GOZLO 3135GOK85 3136G3S.25 3136G3SN6 3135GOK93 3136G31.1 -10 3136G3VU6 3136G3YG4 3136G4HM8 3136G4KN2 3136G4KM4 4140 Federal Farm Credit Bank 4160 Federal Farm Credit Bank 4038 Federal Home Loan Bank 4048 Federal Home Loan Bank 4136 Federal Home Loan Bank 4136 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 4117 Federal Home Loan Mort Corp 4120 Federal Home Loan Mart Corp 4139 Federal Home Loan Mort Corp 4142 Federal Home Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Home Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4163 Federal Home Loan Mort Corp 4122 Fed. Nat'l Mort. Assoc. 4132 Fed. Nat'l Mort. Assoc. 4137 Fed. Nat'l Mort. Assoc. 4141 Fed. Nat'l Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc, 4144 Fed. Nat'l Mort. Assoc. 4146 Fed. Nat'l Mort, Assoc, 4147 Fed. Nat'l Mort. Assoc, 4152 Fed. Nat'l Mort Assoc, 4159 Fed. Nat'l Mort. Assoc. 4161 Fed. Nat'l Mort. Assoc. 4162 Fed. Nat'l Mort. Assoc, 06/15/2016 12/28/2016 12/30/2014 02/20/2015 05/24/2016 06/30/2016 08/10/2016 11/16/2016 10/27/2015 10/27/2015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 12/30/2016 10/29/2015 03/09/2016 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2016 07/25/2016 12/02/2016 12/30/2016 01/17/2017 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000.00 5,000,000,00 5,000,000.00 5,000,000,00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000,00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,906,900.00 5,013,350.00 5,008,450.00 5,022,550.00 4,965,450.00 2,194,627.50 4,941,700.00 5,068,100.00 4,998,900.00 4,968,200.00 4,942,650.00 4,996,800.00 4,921,550,00 4,846,300,00 4,521,354,95 4,942,950.00 4,849,900.00 4,997,700.00 4,991,950.00 5,009,400.00 4,977,200.00 4,825,550.00 2,904,780,00 4,966,800.00 4,873,300.00 4,980,200.00 7,421,700.00 4,965,850.00 5,000,500.00 5,002,300,00 5,000,000.00 5,008,744.90 4,999,733.12 5,014,902.37 5,000,000,00 2,250,000.00 5,000,000.00 5,089,985.55 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,006,492.11 5,000,000.00 4,998,896.53 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 AA 1.620 1.873 AA 1.010 AA 1.100 AA 1.250 AA 1.600 AA 1.518 1.297 AA 0.800 AAA 0.991 AA 1.919 AA 1.000 AAA 0.998 AAA 1.280 AA t500 AAA 1,592 AA 1.650 2.787 AA 1.040 AA 0.800 AA 1.400 AA 1.505 AA 1.500 AA 1.250 AA 1.500 AA 1.819 AA 1.000 1.950 AA 2.050 1.750 1,594 06/14/2021 1,426 12/28/2020 195 08/15/2017 401 03/09/2018 842 05/24/2019 1,428 12/30/2020 1,286 08/10/2020 954 09/13/2019 268 10/27/2017 541 07/27/2018 1,238 06/23/2020 513 06/29/2018 877 06/28/2019 1,337 09/30/2020 1,610 06/30/2021 1,610 06/30/2021 1,755 11/22/2021 1,793 12/30/2021 632 10/26/2018 238 09/2712017 862 06/13/2019 1,610 06/30/2021 1,421 12/23/2020 877 06/28/2019 1,428 12/30/2020 1,629 07/19/2021 813 04/25/2019 1,765 12/02/2021 1,428 12/30/2020 1,080 01/17/2020 Subtotal and Average 144,945,419.42 147,405,000.00 146,026,962.45 147,523,754.58 1.434 1,099 Local Agency Investment Funds SYS982 982 Laif City 21,570,000.19 21,570,000.19 21,570,000.19 0.751 0.751 Subtotal and Average 21,553,681.54 21,570,000.19 21,570,000.19 21,570,000.19 0.751 1 Portfolio CITY AP Run Date: 0411212017- 15:33 PM (PRF_PM2) 7.3.0 Report Var. 7.3.3b HB -19-Item 2. - 11 2.150 1.300 1.400 1.104 1.875 2.300 1.600 1.625 1.550 1.550 1.850 1.150 1.100 2.375 1.375 2.000 AA AA AA AA AA 1.617 1.555 1.303 1.003 1.630 1.291 1.340 1.442 1.350 1.337 2.008 1.258 1.089 1.731 1.491 1.500 1,118 393 961 307 485 85 292 425 317 317 1,124 424 364 713 343 630 1.438 537 1,360 863 City of HB Portfolio Management Page 2 Portfolio Details - Investments January 31, 2017 CUSIP Investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate YTM Days to Maturity S&P 365 Maturity Date Medium Term Notes - IBRD 459058FE8 4158 Intl Bk Recon & Development 11/18/2016 5,000,000.00 4,975,050.00 4,983,132.11 0.876 AAA 1.109 533 07/19/2018 Subtotal and Average 4,982,683.83 5,000,000.00 4,975,050.00 4,983,132.11 1.109 533 Corporate Bonds 06406 H CZO 14912L5P2 17275RBG6 166764AA8 268648AP7 36962G5W0 36962G6K5 36962GEVV9 24422ESR1 24422ESR1 494368BP7 191216BA7 58933YAC9 68389XAQ8 89233P7E0 89236TAY1 10/24/2016 12/10/2014 09/27/2016 02/09/2015 07/14/2015 12/26/2013 05/12/2014 12/19/2014 12/08/2015 12/08/2015 12/28/2016 02/24/2015 02/09/2015 05/26/2015 12/10/2014 01/26/2015 5,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 2,500,000.00 5,000,000.00 2,500,000.00 2,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 2,500,000.00 2,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 44,500,000.00 218,475,000.19 4,995,000.00 2,991,480.00 2,970,000.00 2,995,500.00 2,487,250.00 5,012,350.00 2,507,550.00 2,005,360.00 1,002,700.00 2,005,400.00 1,998,780.00 2,496,075.00 1,997,180.00 3,044,730.00 3,001,500.00 3,018,960.00 44,529,815.00 217,101,827.64 5,079,140.25 2,991,937.98 3,007,482.33 3,002,513.39 2,507,938.28 5,011,757.87 2,505,076.87 2,004,168.72 1,001,714.69 2,003,645.34 1,990,599.48 2,496,926.14 2,000,777.67 3,036,496.13 2,996,793.24 3,025,123.35 44,662,091.73 218,738,978.61 02/24/2020 03/01/2018 09/20/2019 12/05/2017 06/01/2018 04/27/2017 11/20/2017 04/0212018 12115/2017 12/15/2017 03/01/2020 04/01/2018 01/31/2018 01/15/2019 01/10/2018 10/24/2018 4155 Bank of New York 4024 Caterpillar Financial Corp. 4154 Cisco Systems Inc 4044 Chevron Corp 4077 EMC Corp 3994 General Electric Capital Corp 4007 General Electric Capital Corp 4036 General Electric Capital Corp 4126 John Deere Capital 4127 John Deere Capital 4164 Kimberly Clark Corp 4049 Coca Cola Co 4045 Merck & Co Inc 4071 Oracle Corp 4023 Toyota Motor Credit 4039 Toyota Motor Credit Subtotal and Average 44,666,780.17 Total and Average 216,148,564.96 Portfolio CITY AP Run Date: 04/12/2017 - 15:33 PM (PRF_PM2) 7.3.0 HB -20-Item 2. - 12 City of HB Portfolio Management Page 3 Portfolio Details - Cash January 31, 2017 Average Purchase Stated VIM Days to CU SIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Average Balance 0.00 Accrued Interest at Purchase Subtotal 48,258.34 48,258.34 0 48,258 .34 48,258.34 Total Cash and Investments 216,148,564.96 218,475,000.19 217,150,085.98 218,787,236.95 1.360 863 Portfolio CITY AP Run Date: 04/1212017 - 15:33 PM (PRF_PM2) 7.3.0 HB -21-Item 2. - 13 0.751 SYS982 982 45,988.92 Laif City 21,570,000.19 Subtotal 45,988.92 Subtotal Corporate Bonds Subtotal 0.00 0.00 4,983,132.11 44,662,091.73 Medium Term Notes - IBRD City of HB Portfolio Management Activity By Type January 1, 2017 through January 31, 2017 Stated Transaction Purchases Redemptions CUSIP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon 3136G4KM4 4162 Fed. Nat'l Mort. Assoc. 1.750 01/17/2017 5,000,000.00 0.00 Subtotal 5,000,000.00 0.00 147,523,754.58 Local Agency Investment Funds (Monthly Summary) Page 1 Total 5,045,988.92 0.00 218,738,978.61 Portfolio CITY AP Run Date: 04/12/2017 - 15:33 PM (PRF_PM3) 7.3.0 Report Var. 7.3.3b HB -22-Item 2. - 14 City of HB Portfolio Management Page 1 Activity Summary January 2016 through January 2017 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 365 Equivalent Equivalent Average Term Average Days to Maturity January February March April May June July August September October November December January 2016 46 207,140,111.69 2016 43 204,413,571.12 2016 47 201,877,568.13 2016 45 204,141,812.62 2016 44 208,914,656.20 2016 46 228,822,479.77 2016 45 230,059,053.62 2016 45 220,520,888.69 2016 43 208,478,917.26 2016 41 196,572,478.10 2016 42 195,690,704.56 2016 47 198,391,624.24 2017 48 216,148,564.96 1.243 1.217 1.232 1.280 1.168 1.156 1.167 1.186 1.205 1.207 1.208 1.329 1.341 1.261 1.234 1.249 1.298 1.184 1.172 1.183 1.203 1.222 1.224 1.225 1.348 1.360 0.446 0.467 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 0.751 0 0 4 2 14 2 1 1 1 3 5 1 3 2 3 12 3 1 3 3 2 1,147 1,102 1,140 1,181 976 1,006 1,044 1,074 1,114 1,090 1,053 1,154 1,152 898 832 869 893 736 806 830 831 835 807 795 886 863 Average 45 209,346,056.18 1.226% 1.243% 0.593 3 2 1,095 837 Portfolio CITY AP Run Date: 04/12/2017 - 15:33 PM (PRF_PM4) 73.0 Report Ver. 7.3.3b HB -23-Item 2. - 15 January 31 Month Ending Fiscal Year To Date 165,296.67 467,114.30 405,435.69) 0.00) 226,975.28 -14,003.70 0.00 212,971.58 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00 0.00 45,988.92 15,929.00 48,170.21) 13,747.71 240,722.99 -14,003.70 0.00 903,703.89 467,114.30 579,266.66) 0.00) 791,551.53 -52,393.29 0.00 739,158.24 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00 0.00 107,718.68 15,929.00 63,911.05) 59,736.63 851,288.16 -52,393.29 0.00 226,719.29 798,894.87 City of HB Portfolio Management Page 1 Interest Earnings Summary January 31, 2017 CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period Portfolio CITY AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3h HB -24-Item 2. - 16 VMS*. State of California z PMIA vel Pooled Money Investment Account . = Market Valuation ' '1 1Q WO 1/31/2017 Carrying Cost Plus Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury: Bills $ 12,939,844,383.32 $ 12,969,362,500.00 NA Notes $ 22,538,846,606.04 $ 22,515,357,000.00 $ 41,278,436.00 Federal Agency: SBA $ 834,828,478.40 $ 825,837,429.45 538,697.03 MBS-REMICs $ 48,429,621.33 $ 50,938,776.69 $ 228,489.30 Debentures $ 925,076,967.25 $ 922,186,250.00 $ 2,326,951.25 Debentures FR $ - $ - $ - Discount Notes $ 7,769,315,499.94 $ 7,784,729,000.00 NA GNMA $ - $ - $ - Supranational Debentures $ 299,974,475.25 $ 298,890,500.00 $ 974,514.00 Supranational Debentures FR $ 50,000,000.00 $ 49,988,500.00 $ 29,602.53 CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 555,997.92 Bank Notes $ 400,000,000.00 $ 399,976,105.15 $ 1,703,333.33 CDs and YCDs $ 11,850,000,000.00 $ 11,848,350,127.52 $ 23,647,125.01 Commercial Paper $ 7,981,869,208.35 $ 7,991,517,930.57 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 5,354,440,000.00 $ 5,354,440,000.00 NA AB 55 & GF Loans $ 2,371,251,000.00 $ 2,371,251,000.00 NA TOTAL $ 73,763,876,239.88 $ 73,782,825,119.38 $ 71,283,146.37 Fair Value Including Accrued Interest 73,854,108,265.75 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). HB -25-Item 2. - 17 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department January 2017 Cash Receipts and Disbursements December 2016 January 2017 Receipts General Fund Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax Receipts (TOT) Utility Users Tax (UUT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 23,834,299 3,651,567 212,581 633,544 1,472,432 4,198,252 34,002,674 43,042 4,878,349 806,028 507,544 471,232 1,679,992 2,367,853 $44,756,713 (18,120,033) (2,988,067) (226,493) (4,208) 13,542,922 2,568,700 169,968 629,495 1,635,007 4,418,700 22,964,792 16,997 4,825,200 124,635 501,284 3,362,737 118,360 2,188,915 $34,102,920 (11,631,063) (3,406,795) (3,217,117) (4,208) Total General Fund Disbursements (21,338,802) (18,259,184) HB -26-Item 2. - 18 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change in Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (410,813) (1,440) (5,602,208) (832,295) (934,128) (1,645,585) (1,086,546) (1,391,372) (33,243,188) $11,513,525 December 2016 $80,226,032 5,665,094 20,534,527 59,520 71,835,225 11,692,410 10,938,669 24,955,976 $225,907,452 (120,804) (673,200) (3,650,174) (68,526) (772,022) (858,720) (244,054) (1,459,151) (26,105,835) $7,997,085 January 2017 $84,180,758 5,724,206 21,259,511 59,520 70,017,412 12,973,434 11,072,786 27,482,915 $232,770,543 * Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -27-Item 2. - 19 City of HB Portfolio Management Portfolio Summary February 28, 2017 City of Huntington Beach 2000 Main St. Huntington Beach, Par Market Book % of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues - Coupon 147,405,000.00 146,092,192.35 147,518,815.87 69.02 1,338 1,071 1.414 1.434 Local Agency Investment Funds 16,570,000.19 16,570,000.19 16,570,000.19 7.75 1 1 0.766 0.777 Medium Term Notes - IBRD 5,000,000.00 4,973,850.00 4,984,090.52 2.33 608 505 1.093 1.109 Corporate Bonds 44,500,000.00 44,592,175.00 44,652,068.33 20.89 1,154 509 1.418 1.438 Investments 213,475,000.19 212,228,217.54 213,724,974.91 100.00% 1,179 857 1.357 1.376 Cash and Accrued Interest Accrued Interest at Purchase 30,341.67 30,341.67 Subtotal 30,341.67 30,341.67 Total Cash and Investments 213,475,000.19 212,258,559.21 213,755,316.58 1,179 857 1.357 1.376 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return February 28 Month Ending 227,695.01 140,000.00 190,183.75 215,339,319.67 1.38% Fiscal Year To Date 1,026,589.88 700,000.00 883,538.89 204,269,634.27 1.21% Fiscal Year Ending 1,680,000.00 2,299,957.00 I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on November 7, 2016. A copy of this policy is available at the office of the City .eterk,,The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen, CITY TREASURER Reporting period 02/01/2017-02/28/2017 Portfolio CITY AP Run Date: 04/12/2017 - 15:34 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.3b HB -28-Item 2. - 20 City of HB Portfolio Management Page 1 Portfolio Details - Investments February 28, 2017 CUSIP Investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate YTM Days to Maturity S&P 365 Maturity Date Federal Agency Issues - Coupon 1.620 1.920 1.000 1.375 1.250 1.600 1.050 2.000 0.800 1.000 1.250 1.000 1.000 1.280 1.500 1.000 1.650 1.000 1.040 1.000 1.400 1.500 1.500 1.250 1.500 1.125 1.000 1.950 2.050 1.750 3133EGEV3 3133EG2L8 3130A3TA2 313378A43 3130A7WK7 3130A8 DC4 3130A8T94 313383VN8 3134G7U25 3134G73Q2 3134G9RN9 3134G9UY1 3134G9F93 3134 ,09E78 3134G9C54 3134G9G35 31 34 GAU B8 3134GAE34 3136G2R58 3135GOZLO 3135GOK85 3136 G3SJ5 3136G3SN6 3135GOK93 3136G3UTO 3136G3VU6 3136G3YG4 3136G4HM8 3136G4KN2 3136G4KM4 4140 Federal Farm Credit Bank 4160 Federal Farm Credit Bank 4038 Federal Home Loan Bank 4048 Federal Home Loan Bank 4136 Federal Home Loan Bank 4138 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 4117 Federal Home Loan Mort Corp 4120 Federal Home Loan Mart Corp 4139 Federal Home Loan mart Corp 4142 Federal Horne Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Home Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4163 Federal Flame Loan Mort Corp 4122 Fed. Nat'l Mort. Assoc. 4132 Fed. Nat'l Mort, Assoc. 4137 Fed. Nat'l Mort, Assoc. 4141 Fed. Nat'l Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc. 4144 Fed. Nat'l Mort. Assoc. 4146 Fed. Nat'l Mort. Assoc. 4147 Fed. Nat'l Mort. Assoc. 4152 Fed. Nat'l Mort. Assoc. 4159 Fed. Nat'l Mort. Assoc. 4161 Fed. Nat'l Mort. Assoc. 4162 Fed. Nat'l Mort. Assoc. 06/15/2016 12/28/2016 12/30/2014 02/20/2015 05/24/2016 06/30/2016 08/10/2016 11/16/2016 10/27/2015 10/27/2015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 12/30/2016 10/29/2015 03/09/2016 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2016 07/25/2016 12/02/2016 12/30/2016 01/17/2017 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000,00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,00100 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,907,850.00 5,003,500.00 5,005,500.00 5,020,900.00 4,967,400.00 2,197,867.50 4,945,050.00 5,068,350.00 4,997,700.00 4,970,400.00 4,945,800.00 4,995,050.00 4,924,900.00 4,854,600.00 4,528,709.85 4,949,450.00 4,858,350,00 4,998,550.00 4,992,900.00 5,007,400.00 4,978,750.00 4,829,950.00 2,907,390.00 4,979,800.00 4,877,000,00 4,984,050,00 7,425,525.00 4,967,900.00 5,000,800.00 5,000,800.00 5,000,000.00 5,008,558.44 4,999,774.39 5,013,779.07 5,000,000.00 2,250,000.00 5,000,000.00 5,087,119.76 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000,00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,005,666.85 5,000,000.00 4,998,917.36 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 AA 1.620 1.873 AA 1.010 AA 1.100 AA 1.250 AA 1.600 AA 1.518 1.297 AA 0.800 AAA 0.991 AA 1.919 AA 1.000 AAA 0.998 AAA 1.280 AA 1.500 MA 1.592 AA 1.650 2.787 AA 1.040 AA 0.800 AA 1.400 AA 1.505 AA 1.500 AA 1.250 AA 1.500 AA 1.819 AA 1.000 1.950 AA 2.050 1.750 1,566 06/14/2021 1,398 12/28/2020 167 08/15/2017 373 03/09/2018 814 05/24/2019 1,400 12/30/2020 1,258 08/10/2020 926 09/13/2019 240 10/27/2017 513 07/27/2018 1,210 06/23/2020 485 06/29/2018 849 06/28/2019 1,309 09/30/2020 1,582 05/30/2021 1,582 06/30/2021 1,727 11/2212021 1,765 12/3012021 604 10/26/2018 210 09/27/2017 834 06/13/2019 1,582 06/30/2021 1,393 12/23/2020 849 06/28/2019 1,400 12/30/2020 1,601 07/19/2021 785 04/25/2019 1,737 12/02/2021 1,400 12/30/2020 1,052 01/17/2020 Subtotal and Average 147,521,355.77 147,405,000.00 146,092,192.35 147,518,815.87 1.434 1,071 Local Agency Investment Funds SYS982 982 Laif City 16,570,000.19 16,570,000.19 16,570,000.19 0.777 0.777 Subtotal and Average 18,177,143.05 16,570,000.19 16,570,000.19 16,570,000.19 0.777 1 Portfolio CITY AP Run Date: 04/12/2017- 15:34 PM (PRF_PM2) 7,3,0 Report Ver, 7.3.313 HB -29-Item 2. - 21 CUSIP Investment # Medium Term Notes - IBRD 459058FE8 4158 Issuer Intl Bk Recon & Development Purchase Date 11/18/2016 Market Value 4,973,850.00 Stated YTM Days to Maturity Book Value Rate S&P 365 Maturity Date 4,984,090.52 0.876 AAA 1.109 505 07/19/2018 Average Balance Par Value 5,000,000.00 2.150 1.300 1.400 1.104 1.875 2.300 1.600 1,625 1.550 1.550 1.850 1.150 1.100 2.375 1.375 2.000 AA AA AA AA 1.617 1.555 1.303 1.003 1.630 1.291 1.340 1.442 1.350 1.337 2.008 1.258 1.089 1.731 1.491 1.500 1,090 365 933 279 457 57 264 397 289 289 1,096 396 336 685 315 602 1.438 509 1.376 857 City of HB Portfolio Management Page 2 Portfolio Details - Investments February 28, 2017 Subtotal and Average 4,983,597.62 5,000,000.00 4,973,850.00 4,984,090.52 1.109 505 4155 Bank of New York 4024 Caterpillar Financial Corp. 4154 Cisco Systems Inc 4044 Chevron Corp 4077 EMC Corp 3994 General Electric Capital Corp 4007 General Electric Capital Corp 4036 General Electric Capital Corp 4126 John Deere Capital 4127 John Deere Capital 4164 Kimberly Clark Corp 4049 Coca Cola Co 4045 Merck & Co Inc 4071 Oracle Corp 4023 Toyota Motor Credit 4039 Toyota Motor Credit Corporate Bonds 06406HCZO 14912L5P2 17275RBG6 166764AA8 268648AP7 36962G5W0 36962G6K5 36962G6VV9 24422 ESR 1 24422 ESR1 49436801)7 191216BA7 58933YAC9 68389XAQ8 89233P7E0 89236TAY1 Subtotal and Average Total and Average 10/24/2016 12/10/2014 09/27/2016 02/09/2015 07/14/2015 12/26/2013 05/12/2014 12/19/2014 12/08/2015 12/08/2015 12/28/2016 02/24/2015 02/09/2015 05/26/2015 12/10/2014 01/26/2015 5,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 2,500,000.00 5,000,000.00 2,500,000.00 2,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 2,500,000.00 2,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 44,500,000.00 213,475,000.19 5,027,150.00 2,995,710.00 2,982,510.00 2,996,880.00 2,489,975.00 5,014,250.00 2,505,500.00 2,006,160.00 1,001,670.00 2,003,340.00 1,999,160.00 2,497,300.00 1,997,540.00 3,049,350.00 3,002,460.00 3,023,220.00 44,592,175.00 212,228,217.54 5,076,987.75 2,992,558.14 3,007,245.80 3,002,265.35 2,507,442.14 5,007,656.29 2,504,549.86 2,003,871.66 1,001,550.87 2,003,297.06 1,990,853.54 2,497,145.70 2,000,712.68 3,034,940.90 2,997,077.03 3,023,913.56 44,652,068.33 213,724,974.91 02/24/2020 03/01/2018 09/20/2019 12/05/2017 06/01/2018 04/27/2017 11/20/2017 04/02/2018 12/15/2017 12/15/2017 03/01/2020 04/01/2018 01/31/2018 01/15/2019 01/10/2018 10/24/2018 44,657,223.22 215,339,319.67 Portfolio CITY AP Run Date: 04/1212017 - 15:34 PM (PRF_PM2) 7.3.0 HB -30-Item 2. - 22 City of HB Portfolio Management Page 3 Portfolio Details - Cash February 28, 2017 Average Purchase Stated YTM Days to CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Average Balance 0.00 Accrued Interest at Purchase Subtotal 30,341.67 30,341.67 0 30,341.67 30,341.67 Total Cash and Investments 215,339,319.67 213,475,000.19 212,258,559.21 213,755,316.58 1.376 857 PorffoHo CITY FP Run Date: 04/12/2017 - 15:34 PM (PRF_PMZ 7.3.0 HB -31-Item 2. - 23 0.777 0.00 0.00 Medium Term Notes - IBRD Corporate Bonds SYS982 982 Laif City Subtotal 5,000,000.00 5,000,000.00 16,570,000.19 Subtotal 4,984,090.52 Subtotal 44,652,068.33 City of HB Portfolio Management Activity By Type February 1, 2017 through February 28, 2017 Stated Transaction Purchases Redemptions CU SIP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon Subtotal 147,518,815.87 Local Agency Investment Funds (Monthly Summary) Page 1 Total 0.00 5,000,000.00 213,724,974.91 Portfolio CITY AP Run Date: 04/1212017 - 15:34 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b HB -32-Item 2. - 24 City of HB Portfolio Management Page 1 Activity Summary February 2016 through February 2017 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 365 Equivalent Equivalent Average Term Average Days to Maturity February March April May June July August September October November December January February 2016 43 204,413,571.12 2016 47 201,877,568.13 2016 45 204,141,812.62 2016 44 208,914,656.20 2016 46 228,822,479.77 2016 45 230,059,053.62 2016 45 220,520,888.69 2016 43 208,478,917.26 2016 41 196,572,478.10 2016 42 195,690,704.56 2016 47 198,391,624.24 2017 48 216,148,564.96 2017 48 215,339,319.67 1.217 1.232 1.280 1.168 1.156 1.167 1.186 1.205 1.207 1.208 1.329 1.341 1.357 1.234 1.249 1.298 1.184 1.172 1.183 1.203 1.222 1.224 1.225 1.348 1.360 1.376 0.467 0.506 0.526 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 0.751 0.777 0 4 0 2 14 2 1 1 1 3 3 0 2 3 12 3 1 3 3 2 1,102 1,140 1,181 976 1,006 1,044 1,074 1,114 1,090 1,053 1,154 1,152 1,179 832 869 893 736 806 830 831 835 807 795 886 863 857 Average 45 209,945,537.54 1.235% 1.252% 0.619 3 2 1,097 834 Portfolio CITY AP Run Date: 04/12/2017 - 15:34 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b HB -33-Item 2. - 25 City of HB Portfolio Management Interest Earnings Summary February 28, 2017 Page 1 February 28 Month Ending 87,083.33 610,895.11 467,114.30) 0.00) 230,864.14 -14,003.70 0.00 216,860.44 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00 0.00 0.00 26,763.57 15,929.00) 10,834.57 241,698.71 -14,003.70 0.00 Fiscal Year To Date 990,787.22 610,895.11 579,266.66) 0.00) 1,022,415.67 -66,396.99 0.00 956,018.68 0.00 0.00 0.00 0.00 107,718.68 26,763.57 63,911.05) 70,571.20 1,092,986.87 -66,396.99 0.00 0.00 0.00 0.00) 0.00) CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capita! Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period Portfolio CITY AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 227,695.01 1,026,589.88 HB -34-Item 2. - 26 vivEs t% State of California 10, Pooled Money Investment Account Market Valuation 2/28/2017 Carrying Cost Plus Accrued Interest Purch. Description Fair Value Accrued Interest United States Treasury: Bills 13,882,789,340.94 13,914,395,000.00 NA Notes 18,985,201,931.80 18,964,046,000.00 $ 25,071,692.50 Federal Agency: SBA 823,784,977.41 $ 815,829,013.05 $ 531,699.52 MBS-REMICs 46,922,036.30 $ 49,337,629.20 $ 221,132.16 Debentures Debentures FR Discount Notes GNMA Supranational Debentures Supranational Debentures FR $ CDs and YCDs FR Bank Notes CDs and YCDs Commercial Paper Corporate: Bonds FR Bonds Repurchase Agreements Reverse Repurchase 950,067,117.25 7,670,102,194.40 $ 299,974,475.25 $ 50,000,000.00 $ 300,000,000.00 $ 500,000,000.00 $ 11,100,000,000.00 6,283,449,375.00 $ 947,185,750.00 $ 3,087,055.75 7,685,427,000.00 NA 298,457,500.00 $ 1,235,764.00 50,048,000.00 $ 73,227.31 300,000,000.00 $ 626,969.48 499,631,089.68 $ 865,111.12 11,097,225,118.92 $ 25,443,624.96 6,291,994,041.65 NA Time Deposits 5,412,740,000.00 $ 5,412,740,000.00 NA AB 55 & GE Loans 3,153,994,000.00 $ 3,153,994,000.00 NA TOTAL 69,459,025,448.35 69,480,310,142.50 $ 57,156,276.80 Fair Value Including Accrued Interest 69,537,466,419.30 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). HB -35-Item 2. - 27 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department February 2017 Cash Receipts and Disbursements January 2017 February 2017 Receipts General Fund Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax Receipts (TOT) Utility Users Tax (UUT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 13,542,922 2,568,700 169,968 629,495 1,635,007 4,418,700 22,964,792 16,997 4,825,200 124,635 501,284 3,362,737 118,360 2,188,915 $34,102,920 (11,631,063) (3,406,795) (3,217,117) (4,208) 62,287 3,424,900 167,839 660,825 1,643,305 3,018,558 8,977,713 41,745 4,001,360 130,920 746,223 103,709 680,279 801,809 $15,483,758 (11,492,666) (2,174,568) (840,979) (126,817) Total General Fund Disbursements (18,259,184) (14,635,030) HB -36-Item 2. - 28 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change in Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (120,804) (673,200) (3,650,174) (68,526) (772,022) (858,720) (244,054) (1,459,151) (26,105,835) $7,997,086 January 2017 $84,180,758 5,724,206 21,259,511 59,520 70,017,412 12,973,434 11,072,786 27,482,915 * $232,770,543 (106,273) (907,760) (6,355,836) (189,097) (543,448) (387,062) (235,568) (1,620,155) (24,980,229) ($9,496,471) February 2017 $67,561,865 5,666,030 21,194,982 64,423 71,869,889 12,186,557 21,159,981 26,590,228 $226,293,954 * Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -37-Item 2. - 29 City of HB Portfolio Management Portfolio Summary March 31, 2017 City of Huntington Beach 2000 Main St. Huntington Beach, Par Market Book % of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues- Coupon 142,405,000.00 141,104,528.65 142,513,877.17 66.69 1,321 1,015 1.367 1 386 Local Agency Investment Funds 21,570,000.19 21,570,000.19 21,570,000.19 10.09 1 1 0.810 0.821 Medium Term Notes -1BRD 5,000,000.00 4,972,900.00 4,985,048.92 2.33 608 474 1.093 1.109 Corporate Bonds 44,500,000.00 44,517,145.00 44,642,044.90 20.89 1,154 478 1.418 1.438 Investments 213,475,000.19 212,164,573.84 213,710,971.18 100.00% 1,136 788 1.315 1.333 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return March 31 Month Ending 228,500.56 140,000.00 187,833.86 213,717,521,37 1.26% Fiscal Year To Date 1,255,090.44 840,000.00 1,071,372.75 205,878,889.76 1.22% Fiscal Year Ending 1,680,000.00 2,299,957.00 I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on November 7, 2016. A copy of this policy is available at the officeAhe City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corpor Alisa Cutchen, CITY TREASUR Reporting period 03/01/2017-0313112017 Portfolio CITY AP Run Date: 04/12/2017 - 15:37 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.3b HB -38-Item 2. - 30 City of HB Portfolio Management Page 1 Portfolio Details - Investments March 31, 2017 Average Purchase Stated VIM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 385 Maturity Date Federal Agency Issues - Coupon 1.620 1.920 1.000 1.375 1.250 1.600 1.050 2.000 0.800 1.000 1.250 1.000 1.000 1.280 1.500 1.000 1.650 1.040 1.000 1.400 1.500 1.500 1.250 1.500 1.125 1.000 1.950 2.050 1.750 3133EGEV3 3133EG2L8 3130A3TA2 313378A43 3130A7VVK7 3130A8DC4 3130A8T94 313383VN8 3134G7U25 3134G73Q2 3134G9RN9 3134G9UY1 3134G9F93 3134G9E78 3134G9C54 3134G9G35 3134GAUBB 3136G2R58 3135GOZLO 3135GOK85 3136G3SJ5 3136G3SN6 3135GOK93 3136G3UTO 3136G3VU6 3136G3YG4 3136G4HM8 3136G4KN2 3136G4KM4 4140 Federal Farm Credit Bank 4160 Federal Farm Credit Bank 4038 Federal Home Loan Bank 4048 Federal Home Loan Bank 4136 Federal Home Loan Bank 4138 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 4117 Federal Home Loan Mort Corp 4120 Federal Home Loan Mort Corp 4139 Federal Home Loan Mort Corp 4142 Federal Home Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Home Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4122 Fed. Nat'l Mort. Assoc. 4132 Fed. Nat'l Mort. Assoc. 4137 Fed. Nat'l Mort Assoc. 4141 Fed. Nat'l Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc. 4144 Fed. Nail Mort. Assoc. 4146 Fed. Nat'l Mort. Assoc. 4147 Fed. Nat'l Mort. Assoc. 4152 Fed. Nat'l Mort. Assoc. 4159 Fed. Nat'l Mort. Assoc. 4161 Fed. Nat'l Mort. Assoc. 4162 Fed. Nat'l Mort, Assoc. 06/15/2016 12/28/2016 12/30/2014 02/20/2015 05/24/2016 06/30/2016 08/10/2016 11/16/2016 10/27/2015 10/27/2015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 10/29/2015 03/09/2016 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2016 07/25/2016 12/02/2016 12/30/2016 01/17/2017 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,916,850.00 4,998,000.00 5,001,100.00 5,011,450.00 4,965,800.00 2,221,920.00 4,947,900.00 5,057,500.00 4,994,400.00 4,970,450.00 4,948,050.00 4,989,250.00 4,924,700.00 4,851,600.00 4,523,868.65 4,948,750.00 4,851,850.00 4,989,650.00 5,001,400.00 4,986,450.00 4,881,150.00 2,905,290.00 4,975,400.00 4,872,750.00 4,987,100.00 7,421,400.00 4,959,650.00 4,999,850.00 5,001,000.00 5,000,000.00 5,008,371.98 4,999,815.66 5,012,655.78 5,000,000.00 2,250,000.00 5,000,000.00 5,084,253.98 5,000,000.00 5,000,000.00 5,000,000,00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,004,841.58 5,000,000.00 4,998,938.19 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 AA 1.620 1.873 AA 1.010 AA 1.100 AA 1.250 AA 1.600 AA 1.518 1.297 AA 0.800 AAA 0.991 AA 1.919 AA 1.000 MA 0.998 AAA 1.280 AA 1.500 AAA 1.592 AA 1.650 AA 1.040 M 0.800 AA 1.400 M 1.505 AA 1.500 M 1.250 M 1.500 M 1.819 AA 1.000 1.950 AA 2.050 1.750 1,535 06/14/2021 1,367 12/28/2020 136 08/15/2017 342 03/09/2018 783 05/24/2019 1,369 12/30/2020 1,227 08/10/2020 895 09/13/2019 209 10/27/2017 482 07/27/2018 1,179 06/23/2020 454 06/29/2018 818 06/28/2019 1,278 09/30/2020 1,551 06/30/2021 1,551 06/30/2021 1,696 11/22/2021 573 10/26/2018 179 09/27/2017 803 06/13/2019 1,551 06/30/2021 1,362 12/23/2020 818 06/28/2019 1,369 12/30/2020 1,570 07/19/2021 754 04/25/2019 1,706 12/02/2021 1,369 12/30/2020 1,021 01/17/2020 Subtotal and Average 147,193,606.54 142,405,000.00 141,104,528.65 142,513,877.17 1.385 1,015 Local Agency Investment Funds SYS9132 982 Laif City 21,570,000.19 21,57 0,0 00.19 21,570,000.19 0.821 0.821 1 Subtotal and Average 16,892,580.84 21,570,000.19 21,570,000.19 21,570,000.19 0.821 1 Portfolio CITY AP Run Date: 04/12/2017 - 15:37 PM (PRF Pm2) 7.3.0 Report Var. 7,3.3b HB -39-Item 2. - 31 City of HB Portfolio Management Page 2 Portfolio Details - Investments March 31, 2017 CUSIP investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate YTM Days to Maturity S&P 365 Maturity Date Medium Term Notes - IBRD 459058FE8 4158 Intl Bk Recon & Development 11/18/2016 5,000,000.00 4,972,900.00 4,985,048.92 0.876 AAA 1.109 474 07119/2018 Subtotal and Average 4,984,600.63 5,000,000.00 4,972,900.00 4,985,048.92 1.109 474 2.150 1.300 1.400 1.104 1.875 2.300 1.600 1.625 1.550 1.550 1.850 1.150 1.100 2.375 1.375 2.000 Corporate Bonds 06406HCZO 14912L5P2 17275RBG6 166764AA8 268648AP7 36962G5W0 36962G6K5 36962G6VV9 24422ESR1 24422ESR1 49436813P7 19121613A7 58933YAC9 68389XAQ8 89233P7E0 89236TAY1 4155 Bank of New York 4024 Caterpillar Financial Corp. 4154 Cisco Systems Inc 4044 Chevron Corp 4077 EMC Corp 3994 General Electric Capital Corp 4007 General Electric Capital Corp 4036 General Electric Capital Corp 4126 John Deere Capital 4127 John Deere Capital 4164 Kimberly Clark Corp 4049 Coca Cola Co 4045 Merck & Co Inc 4071 Oracle Corp 4023 Toyota Motor Credit 4039 Toyota Motor Credit 10/24/2016 12/10/2014 09/27/2016 02/09/2015 07/14/2015 12/26/2013 05/12/2014 12/19/2014 12/08/2015 12/08/2015 12/28/2016 02/24/2015 02/09/2015 05/26/2015 12/10/2014 01/26/2015 5,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 2,500,000.00 5,000,000.00 2,500,000.00 2,000,000.00 1,000,000.00 2,000,000,00 2,000,000.00 2,500,000.00 2,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 5,020,500.00 2,990,790.00 2,976,990.00 2,994,990.00 2,475,975.00 5,003,200.00 2,501,550.00 2,004,340.00 1,000,990.00 2,001,980.00 1,999,660.00 2,494,700.00 1,995,920.00 3,041,280.00 2,999,460.00 3,014,820.00 5,074,835.25 2,993,178.29 3,007,009.26 3,002,017.32 2,506,946.00 5,003,554.70 2,504,022.85 2,003,574.60 1,001,387.04 2,002,948.78 1,991,107.61 2,497,365.26 2,000,647.69 3,033,385.67 2,997,360.81 3,022,703.77 A 1.617 A 1.555 AA 1.303 AA 1.003 AA 1.630 AAA 1.291 AA 1.340 AA 1.442 A 1.350 A 1.337 2.008 AA 1.258 AA 1.089 AA 1.731 AA 1.491 AA 1.500 1,059 02/24/2020 334 03/01/2018 902 09/20/2019 248 12/05/2017 426 06/01/2018 26 04/27/2017 233 11/20/2017 366 04/02/2018 258 12/15/2017 258 12/15/2017 1,065 03/01/2020 365 04/01/2018 305 01/31/2018 654 01/15/2019 284 01/10/20113 571 10/24/2018 Subtotal and Average 44,646,733.36 44,500,000.00 44,517,145.00 44,642,044.90 1.438 478 Total and Average 213,717,521.37 213,475,000.19 212,164,573.84 213,710,971.18 1.333 788 Portfolio CITY AP Run Date: 04/12/2017 - 15:37 PM (PRF_PM2) 7.3.0 HB -40-Item 2. - 32 City of HB Portfolio Management Activity By Type March 1, 2017 through March 31, 2017 Stated Transaction Purchases Redemptions CUSIP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon 3134GAE34 4163 Federal Home Loan Mort Corp 1.000 03/3012017 0.00 5,000,000.00 Subtotal 0.00 5,000,000.00 142,513,877.17 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.821 5,000,000.00 0.00 Subtotal 5,000,000.00 0.00 21,570,000.19 Medium Term Notes - IBRD Corporate Bonds Subtotal Subtotal 4,985,048.92 44,642,044.90 Total 5,000,000.00 5,000,000.00 213,710,971.18 Page 1 Portfolio CITY AP Run Date: 0412/2017- 15:37 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.35 HB -41-Item 2. - 33 City of HB Portfolio Management Page 1 Activity Summary March 2016 through March 2017 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 366 Equivalent Equivalent Average Term Average Days to Maturity March April May June July August September October November December January February March 2016 47 201,877,568.13 2016 45 204,141,812.62 2016 44 208,914,656.20 2016 46 228,822,479.77 2016 45 230,059,053.62 2016 45 220,520,888.69 2016 43 208,478,917.26 2016 41 196,572,478.10 2016 42 195,690,704.56 2016 47 198,391,624.24 2017 48 216,148,564.96 2017 48 215,339,319.67 2017 47 213,717,521.37 1.232 1.280 1.168 1.156 1.167 1.186 1.205 1.207 1.208 1.329 1.341 1.357 1.315 1.249 1.298 1.184 1.172 1.183 1.203 1.222 1.224 1.225 1.348 1.360 1.376 1.333 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 0.751 0.777 0.821 4 0 2 14 2 1 1 1 3 5 0 2 3 12 3 3 3 2 1 1,140 1,181 976 1,006 1,044 1,074 1,114 1,090 1,053 1,154 1,152 1,179 1,136 869 893 736 806 830 831 835 807 795 886 863 857 788 Average 45 210,645,937.86 1.242% 1.260% 0.646 3 2 1,100 830 Portfolio CITY AP Run Date: 04/1212017- 15:37 PM (PRF_PM4) 7.3.0 Report Ver, 7.3,3P HB -42-Item 2. - 34 Page 1 Fiscal Year To Date City of HB Portfolio Management Interest Earnings Summary March 31, 2017 March 31 Month Ending 182,533.33 659,087.08 610,895.11) 0.00) 1,173,320.55 659,087.08 579,266.66) 0.00) CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period Portfolio CITY AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00) 0.00) 0.00 0.00 230,725.30 -14,003.73 0.00 1,253,140.97 -80,400.72 0.00 216,721.57 1,172,740.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38,542.56 26,763.57) 107,718.68 38,542.56 63,911.05) 11,778.99 82,350.19 242,504.29 -14,003.73 0.00 1,335,491.16 -80,400.72 0.00 228,500.56 1,255,090.44 HB -43-Item 2. - 35 VEST .- State of California AS. 4fet, Pooled Money Investment Account o = c. ,,, Market Valuation en .,>• ..1,ouort. 3/31/2017 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury: Bills $ 11,529,529,518.46 $ 11,555,331,831.40 $ 11,547,993,500.00 NA Notes $ 19,784,669,253.72 $ 19,783,508,723.77 $ 19,749,210,500.00 $ 33,930,754.00 Federal Agency: SBA $ 866,949,257.52 $ 866,912,128.47 $ 858,953,922.79 $ 729,325.65 MBS-REMICs $ 44,788,917.08 $ 44,788,917.08 $ 47,053,192.13 $ 211,005.30 Debentures $ 949,997,076.07 $ 949,997,076.07 $ 946,506,000.00 $ 1,591,535.50 Debentures FR $ - $ - $ - $ .. Discount Notes $ 7,768,611,458.36 $ 7,782,989,930.58 $ 7,780,400,000.00 NA GNMA $ - $ - $ - $ - Supranational Debentures $ 299,965,313.04 $ 299,965,313.04 $ 298,392,500.00 $ 492,013.50 Supranational Debentures FR $ 50,000,000.00 $ 50,000,000.00 $ 50,073,000.00 $ 121,526.17 CDs and YCDs FR $ 300,000,000.00 $ 300,000,000.00 $ 300,000,000.00 $ 670,902.50 Bank Notes $ 600,000,000.00 $ 600,000,000.00 $ 599,607,935.89 $ 1,439,055.55 CDs and YCDs $ 10,550,000,000.00 $ 10,550,000,000.00 $ 10,547,089,360.14 $ 25,231,888.90 Commercial Paper $ 5,830,869,194.46 $ 5,839,554,041.75 $ 5,838,495,499.98 NA Corporate: Bonds FR $ - $ - $ - $ .. Bonds $ - $ - $ - $ - Repurchase Agreements $ - $ - $ - $ - Reverse Repurchase $ - $ - $ - $ - Time Deposits $ 5,480,740,000.00 $ 5,480,740,000.00 $ 5,480,740,000.00 NA AB 55 & GF Loans $ 7,824,657,000.00 $ 7,824,657,000.00 $ 7,824,657,000.00 NA TOTAL $ 71,880,776,988.71 $ 71,928,444,962.16 $ 71,869,172,410.93 $ 64,418,007.07 Fair Value Including Accrued Interest $ 71,933,590,418.00 * Governmental Accounting Standards Board (GASB) Statement #72 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost (0.999175951). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report itF. participation in the LAIF valued at $19,983,519.02 or $20,000,000.00 x0.999175951. HB -44-Item 2. - 36 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department March 2017 Cash Receipts and Disbursements Receipts General Fund February 2017 March 2017 Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax Receipts (TOT) Utility Users Tax (U UT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 62,287 3,424,900 167,839 660,825 1,643,305 3,018,558 8,977,713 41,745 4,001,360 130,920 746,223 103,709 680,279 801,809 $15,483,758 (11,492,666) (2,174,568) (840,979) (126,817) 3,622,591 3,219,974 257,454 791,312 1,653,620 6,236,056 15,781,007 83,393 4,925,068 81,157 836,665 1,450,843 2,069,395 1,057,685 $26,285,214 (11,472,320) (2,918,568) (820,853) (4,208) Total General Fund Disbursements (14,635,030) (15,215,949) HB -45-Item 2. - 37 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change in Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (106,273) (907,760) (6,355,836) (189,097) (543,448) (387,062) (235,568) (1,620,155) (24,980,229) ($9,496,471) February 2017 $67,561,865 5,666,030 21,194,982 64,423 71,869,889 12,186,557 21,159,981 26,590,228 $226,293,954 (119,221) (3,021,136) (134,346) (575,390) (328,547) (1,294,099) (972,307) (21,660,994) $4,624,220 March 2017 $62,919,165 5,612,841 21,159,155 64,423 72,979,386 12,271,934 21,421,257 28,477,164 $224,905,323 * Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -46-Item 2. - 38 CITY OF HUNTINGTON BEACH CITY TREASURER’S REPORT PERIOD ENDING: MARCH 31, 2017 Alisa Cutchen, MBA, CCMT, CPFIM City Treasurer HB -47-Item 2. - 39 CITY TREASURER’S MISSION: PRESERVATION AND RETURN OF INVESTMENTS Portfolio governed by: California State Regulations City’s Investment Policy – Certified by California Municipal Treasurers Association HB -48-Item 2. - 40 CITY TREASURER’S MISSION: PRESERVATION AND RETURN OF INVESTMENTS Goal: Own Legal AND Suitable Investments to meet the objectives: Safety of Principal Adequate Liquidity Market Rate of Return In this absolute order of priority HB -49-Item 2. - 41 MARKET UPDATE: 1ST QUARTER 2017 Unemployment rate to 4.5% from 4.7% March labor participation rate 63.0% slightly from 62.7% S&P 500 and DJIA 5.53% and 4.56%, respectively Federal Reserve raised interest rates to .75%-1.00% at the March 15 meeting HB -50-Item 2. - 42 INTEREST RATE VOLATILITY: 2-YEAR TREASURY YIELD APRIL 2016 – APRIL 2017 52-week low: .56% 52-week high: 1.38% HB -51-Item 2. - 43 PORTFOLIO OVERVIEW: INVESTMENT SUMMARY $ in millions: Investment Type Market Value Book Value % of Portfolio Policy Limit Federal Agency Issues 141.1$ 142.5$ 67%None Local Agency Investment Fund (LAIF)21.6$ 21.6$ 10%$65 million Medium Term Notes - IBRD 5.0$ 5.0$ 2%10% Corporate Bonds 44.5$ 44.6$ 21%30% Total Portfolio 212.2$ 213.7$ 100%HB -52-Item 2. - 44 PORTFOLIO OVERVIEW: INVESTMENTS BY TYPE Federal Agencies 67% Corp Bonds 21% LAIF 10% MTN- IBRD 2% HB -53-Item 2. - 45 PORTFOLIO OVERVIEW: MONTHLY EARNINGS APR 2016 – MAR 2017 $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 HB -54-Item 2. - 46 PORTFOLIO PERFORMANCE: AS OF MARCH 31, 2017 •Monthly Earnings for Mar 2017: $228,501 vs. budgeted: $140,000 •Fiscal YTD Earnings through Mar 2017: $1,255,090 vs. budgeted: $ 840,000 •Monthly Effective Rate of Return: 1.26% vs. benchmark: 1.27% •Benchmark per Investment Policy: 2-year Constant Maturity Treasury Rate HB -55-Item 2. - 47 CONCLUSIONS: Portfolio remains compliant: Relevant governmental regulations City’s Investment Policy $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Portfolio Earnings offset taxpayer $: • operating expenses • capital projects • debt repayment • other liabilities HB -56-Item 2. - 48 QUESTIONS? Thank you HB -57-Item 2. - 49 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, April 3, 2017 4:00 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:00 PM and 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 4:00 PM - COUNCIL CHAMBERS CALLED TO ORDER — 4:01 PM ROLL CALL Present: O’Connell (arrived at 5:23 PM), Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: For Study Session Item No. 1 1) Memo submitted by the Finance Commission highlighting their review process and the resulting Findings and Recommendations; 2) PowerPoint communication entitled Downtown BID, Finance Commission Findings and Recommendations; 3) Email submitted by Finance Commissioner Ken Small, which he requested be read aloud on his behalf since he is unable to attend this meeting*; and 4) Communication submitted by Kim Kramer, Huntington Beach citizen. *From: Kenneth Small To: City Council Subject: April 3 City Council Study Session Unfortunately, I will not be able to attend the City Council/Finance Commission Study Session on April 3 due to a planned trip. As a member of the Finance Commission Sub-Committee that studied the Downtown BID issues and prepared the findings and recommendations that were adopted by the Finance Commission, I wanted to say I strongly support those recommendations. I, like the other sub- committee members, do not believe there was any information to indicate that the Downtown BID Board was in any way dishonest or that there was any attempt to hide funds. However, the complexity of the Downtown BID and events downtown has outgrown the current structure, and changes that should have HB -58-Item 3. - 1 Council/PFA Regular Minutes April 3, 2017 Page 2 of 14 been incorporated during the growth phase have not been incorporated. The recommendations of the Finance Commission, if adopted by the City Council, should provide a solution for the current problems. I would also like to say that the credibility of the findings and recommendations was significantly enhanced based on the involvement of my two co-sub-committee members. Carol Woodworth, and Ron Sterud are both incredible talented people with a great deal of experience in financial management issues, and they both worked very hard on the findings and recommendations. Lastly, I know there have been many complaints about the conduct and actions of the Downtown Bid Board. Some of the comments and complaints may be justified. However, for the most part the complaints come from a group of individuals who are quick to complain, but are slow to actually invest any of their time to work to make things better. To those individuals, I say volunteer to run for the board, attend a monthly board meeting, provide positive, proactive input rather than complain after the fact. To those, outside of the downtown business group, who have complained, I say just because mistakes have been made does not necessarily indicate the Downtown BID Board has in any way been dishonest. We found no evidence of any conspiracy or any intent to do anything improper. For Study Session Item No. 2 1) PowerPoint communication entitled Suggested Changes to Resolution No. 2013-24 (Downtown Alcohol and Live Entertainment) Conditions of Approval. PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) — None STUDY SESSION 1. The Finance Commission provided a presentation on the Subcommittee Findings and Recommendations for the Downtown BID Mayor Delgleize introduced Finance Commissioner Chair Carol Woodworth who gave a PowerPoint presentation entitled: Downtown BID, Finance Commission Findings and Recommendations with slides entitled: Downtown BID (3), Additional Resources Contacted, Findings and Recommended Actions (2), Recommended Actions (6), and Questions. Commissioner Ron Sterud participated by describing the Commission's recommendations to enhance the Downtown BID’s business practices, and financial reporting and controls. Councilmember Peterson suggested contract labor be used to fill the recommended Director position rather than hiring an employee. Mayor Pro Tem Posey and Commissioners Sterud and Woodworth discussed that no one outside of the BID was interviewed for this report, and that the Subcommittee used BID's CPA firm only due to budget constraints for this review. Mayor Pro Tem Posey expressed his opinion that an outside BID consultant should be used and City Manager Wilson stated this would cost approximately $15,000. Councilmember Semeta thanked the Subcommittee for going above and beyond in reviewing the minutes and finances of the Downtown BID. Councilmember Brenden expressed his appreciation for the time the Subcommittee spent on their review, discussed the baseline for reducing the reserve policy from one year to six months, and provided support for hiring an outside, industry-specific consultant. He also expressed support for periodic auditing of all three BIDs, and provided comments on standard operating procedures, bylaws, board elections and reporting levels to the BID board, City Council, and City staff. HB -59-Item 3. - 2 Council/PFA Regular Minutes April 3, 2017 Page 3 of 14 Mayor Pro Tem Posey and Commissioner Woodworth discussed the recommendation for consolidated financial statements, and what the suggested reserve policy is for -- the umbrella organization and not each specific event. Councilmember Peterson stated that in his opinion it is not appropriate for Council to try to micro-manage BIDS. Mayor Delgleize voiced her support for using an outside consultant to suggest best practices. 2. Staff presented suggested changes to Resolution No. 2013-24 (Downtown Specific Plan District 1 Alcohol and Live Entertainment) Conditions of Approval. City Manager Fred Wilson introduced Planning Manager Jane James who, along with Chief Assistant City Attorney Mike Vigliotta, and Police Chief Handy, gave a PowerPoint Presentation entitled: Suggested Changes to Resolution No. 2013-24 (Downtown Alcohol and Live Entertainment) Conditions of Approval with slides entitled: Background, Location, Background (3), Resolution 2013-24 Overview (2), Council Direction, Newport Beach Operator's License, Revocation of CUP, Live Entertainment Permits, Staff's Recommendations (2), and Upcoming Projects. Councilmember Hardy and staff discussed options for determining whether an establishment falls under bar or restaurant rules, and confirmed that the City of Newport Beach Operator's License and the City of Huntington Beach permits do not run with the land. Councilmember Hardy supports the midnight deadline for serving alcohol and allowing later hours for food-only service for new establishments, and using the Planning Commission, rather than Zoning administrators, as the reviewing body. Councilmember Peterson confirmed with staff that violating Conditional Use Permit (CUP) stipulations, municipal codes or entertainment permit regulations could be cause for revoking a CUP. Staff suggested that possibly specific contracts with unilateral termination conditions, in addition to the CUP, could allow for quicker action to remedy infractions. Mayor Pro Tem Posey and staff discussed using an escalating fine structure to encourage compliance, and requested further study on the pros and cons of using specific contracts. Councilmember Brenden and staff discussed the effect on operating hours for an existing business making improvements, and having CUPs tied to the land, rather than to an operator. Councilmember Brenden expressed his opinion that revoking a CUP is using the "nuclear" option, but utilizing a system of fines through an entertainment permit may provide better opportunities for the business to come into compliance. Police Chief Handy explained that it can take several years to enforce an establishment's Alcoholic Beverage Control (ABC) license if, for instance, they are found to be serving alcohol to minors. Chief Assistant City Attorney Mike Vigliotta confirmed that he is not aware of any other municipality using contracts, and enforcing contracts is a pretty straight forward process when conditions are clearly spelled out. Revoking permits can be a rather drawn out process, especially compared to a contract. Councilmember Semeta stated her interest in seeing staff do a more detailed analysis of using contracts, and agrees with Councilmember Hardy that the Planning Commission should be the reviewing body. Councilmember Peterson expressed interest in further exploring the use of contracts with clear-cut infractions and consequences. HB -60-Item 3. - 3 Council/PFA Regular Minutes April 3, 2017 Page 4 of 14 RECESSED TO CLOSED SESSION — 5:21 PM A motion was made by Brenden, second Semeta to recess to Closed Session for Items 3 and 4. With no objections, the motion passed. Mayor Delgleize Announced: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator, City Manager Fred Wilson, who will be participating in today's Closed Session discussions regarding labor negotiations with: Huntington Beach Firefighters' Association (HBFA), Huntington Beach Police Officers' Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). CLOSED SESSION 3. Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager, regarding the following: Huntington Beach Firefighters’ Association (HBFA), Huntington Beach Police Officers’ Association (POA), and/or Surf City Lifeguard Employees’ Association (SCLEA). 4. Pursuant to Government Code §54956.9(d)(2) the City Council recessed into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, one (1). 6:00 PM – COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:17 PM ROLL CALL Present: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson Absent: None PLEDGE OF ALLEGIANCE — Led by Mayor Pro Tem Posey. INVOCATION — Led by Father Christian Mondor of Sts. Simon and Jude Catholic Church, and member of the Greater Huntington Beach Interfaith Council. In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS Mayor Delgleize announced April as National Child Abuse Prevention Month and presented a Proclamation to the Child Abuse Prevention Center’s Executive Director, Scott Trotter. Mayor Delgleize presented the Fair Housing Month Proclamation to Senior Housing Counselor, Adrienne Ray of the Fair Housing Foundation. Mayor Delgleize called on Diana Dehm, Executive Director, International Surfing Museum, who presented “Operation Rings,” a plan to get the 2024/2028 Olympic Surfing Competition held in Huntington Beach. HB -61-Item 3. - 4 Council/PFA Regular Minutes April 3, 2017 Page 5 of 14 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: City Manager's Report, No. 1, a PowerPoint communication entitled Plan for Use of the Rodgers Seniors' Center Building. Consent Calendar: 1) Item No. 2, a memo submitted by the City Clerk identifying proposed revisions to the March 20, 2017, City Council regular meeting minutes. 2) Item No. 6, email communications received from Steve Engel, Aaron Soto, Cindy Barnes, Bill Hart, John Bowden, Andrew Hamer and Sarah Hendrickson. 3) Item No. 7, email communications received from Mark Dixon, Hedda and Richard Schnur, Shawn Haney, Brandy Young, Theresa Holst, Sandra Fazio and Maida Cheung. Ordinances for Introduction: 1) Item No. 8, a PowerPoint communication submitted by Police Chief Robert Handy dated April 3, 2017, entitled Updating City Municipal Codes, and email communications received from Linda Duchein, Steve Engel and Larry French. PUBLIC COMMENTS (3 Minute Time Limit) — 37 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. Don McAllister, Board of Directors, International Surfing Museum, was called to speak and voiced his support for the effort to have the 2024/2028 Olympic surfing competition in Huntington Beach. (01:45:37) Brett Barnes, Huntington Beach High School and Dwyer Middle School Surf Team Coach, was called to speak and requested community support for the vision of local young surfers who will be qualifying for the 2024/2028 Olympic surfing competitions. (01:47:15) Don Ramsey was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (01:49:22) Ralph Bauer, one of the authors of the Human Dignity Policy, was called to speak and voiced his support of Councilmember Items No. 10 to establish a City Council Ad Hoc Committee on Homelessness, and No. 11, reaffirming the City's Declaration of Policy about Human Dignity. (01:52:01) Rick Fignetti was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (01:54:53) Duke Aipa was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (01:57:09) Jericho Poppler, Former U. S. Champion, First World Tour Women's Champion, was called to speak and voiced her support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (01:58:57) HB -62-Item 3. - 5 Council/PFA Regular Minutes April 3, 2017 Page 6 of 14 Don Bigelow was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach, and his opposition to Ordinances for Introduction, Item No. 8, amending the Huntington Beach Municipal Code related to nuisance crimes and the homeless population. (02:00:50) Shawn Thompson, Huntington Beach Environmental Board Member, was called to speak and voiced her support of Consent Calendar Item No. 6 regarding conceptual Master Plan Improvements for Irby Park, and offered some suggested changes. (02:04:11) Craig Sheets, resident of Fullerton, was called to speak and shared his opinions on various issues. (02:05:50) Dr. Bruce Gabrielson was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (02:09:07) Andy Roush, 35-year resident of Huntington Beach who has been homeless for the past seven years, was called to speak and encouraged the Council to provide more affordable housing in the City. (02:12:41) Hek Valdez, former Chair of the Huntington Beach Homeless Task Force, was called to speak and voiced his support of Councilmember Items No. 10 to establish a City Council Ad Hoc Committee on Homelessness. (02:13:45) Kimo Gandall was called to speak and voiced his opposition to Councilmember Items No. 10 to establish a City Council Ad Hoc Committee on Homelessness, and suggested that Huntington Beach follow the actions taken by the City of Irvine on this issue, i.e., pass legislation to keep people out of the city who are dangerous and commit crimes. (02:15:27) Maureen was called to speak and voiced her concerns about the possibility of local terrorist attacks. (02:18:36) Shirley Dettloff, one of the authors of the Human Dignity Policy, was called to speak and voiced her support of Councilmember Items No. 10 to establish a City Council Ad Hoc Committee on Homelessness, and No. 11, reaffirming the City's Declaration of Policy about Human Dignity. (02:20:57) Jerry Patterson, resident of Operetta Drive, was called to speak and requested removal of old pine trees on his street that are damaging sidewalks and curbs and invading sewer lines. He also voiced concerns about crows found dead in his neighborhood testing positive for West Nile Virus. (02:24:31) Steve Engel was called to speak and voiced his support of Consent Calendar Item No. 6, regarding conceptual Master Plan Improvements for Irby Park. He also thanked Public Works staff for their great work in maintaining Central Park. (02:27:13) Patricia Goodman was called to speak and voiced her support of Councilmember Items No. 10 to establish a City Council Ad Hoc Committee on Homelessness. (02:29:56) Tony Sellas was called to speak and shared his opinions on the mixed-use project at 16741 Pacific Coast Highway, Sunset Beach, and described the inconsistencies which are in violation of City Zoning Code 215.18. (02:30:56) HB -63-Item 3. - 6 Council/PFA Regular Minutes April 3, 2017 Page 7 of 14 David Ewell was called to speak and shared his concerns about the fire danger from the weeds on the right-of-way for the former railroad to the Naval Weapons storage yard, and stated he had also brought this to the attention of the Fire Department and Public Works. (02:34:05) Leslie Bowman was called to speak and voiced her support of Consent Calendar Item No. 7, regarding Permit Parking District "U" along Polynesian Lane and Regatta Drive. (02:37:05) Spencer Hagaman was called to speak and stated his support for Councilmember Items No. 10 to establish a City Ad Hoc Committee on Homelessness. (02:38:59) Aaron Soto was called to speak and stated his support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. (02:41:06) Helen Cameron, Jamboree Housing, was called to speak and stated her support for Councilmember Items No. 10 to establish a City Ad Hoc Committee on Homelessness. (02:43:51) Jason Lambert was called to speak and stated his support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. (02:46:13) Tina Toulouse, Surfing Museum Docent, was called to speak and voiced her support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. (02:46:47) Corwin Reno was called to speak and voiced his support for the vision of seeing the 2024/2028 Olympic surfing competition in Huntington Beach. He also spoke in support of Councilmember Items No. 10 to establish a City Ad Hoc Committee on Homelessness. (02:48:11) Louann Coerper was called to speak and stated her support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. (02:50:44) Victor Leipzig was called to speak and stated his support of Ordinances for Introduction, No. 8, amending the Municipal Code to enhance law enforcement efforts to provide public safety and quality of life; Councilmember Items No. 10, establishing a City Council Ad Hoc Committee on Homelessness; and No. 11 to reaffirm the City's Declaration of Policy about Human Dignity. (02:53:55) Patricia Smith was called to speak and voiced her opinions about the recent public march and rally at Bolsa Chica State Beach and her concerns about the display of anti-Semite flags and signs. She asked that the City Council publicly assure all Huntington Beach citizens that they do not support discrimination and hate speech. (02:57:11) Fran Varga was called to speak and voiced her concerns for City Manager's Report, Item No. 1, the Rodgers Seniors’ Center Building, and recent observed activities on this site which appear to be in violation of public trust for an area which is zoned as Public Open Space, Parks and Recreation. (02:58:18) Jody Williams was called to speak and shared that from her experience and activities to assist the homeless, it is her opinion that a temporary shelter is necessary to get a clean and sober homeless person into a long-term help program. (03:01:17) Erick Blaha was called to speak and stated his support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. He stated that he and his seven-year old son are the ones that currently try to keep the garbage picked up and weeds mowed. (03:04:54) HB -64-Item 3. - 7 Council/PFA Regular Minutes April 3, 2017 Page 8 of 14 Kathy Tillotson, Executive Director of Build Futures, was called to speak and shared that this non-profit has helped over 1,200 18-24 year old homeless youth in the last seven years. In her opinion, providing housing is the most important part of addressing homelessness. (03:06:17) Bill Kettler was called to speak and stated his support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. (03:09:32) Adam Rodell was called to speak and stated his support for Consent Calendar Item No. 6, regarding the Conceptual Master Plan of Improvements for Irby Park. (03:11:28) COUNCIL COMMITTEE – APPOINTMENTS – LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember O'Connell announced his appointment of Ken Evans to the Citizen Participation Advisory Board (CPAB). He also reported attending an Orange County Commission to End Homelessness meeting. Mayor Delgleize reported meeting with representatives of the Police Officer's Association (POA), and attending a Southern California Edison Executive Committee meeting. Councilmember Brenden reported touring the USS San Diego while it was moored at the Naval Weapons Station, attended a Southern California Edison Executive Committee meeting, the Orange County Committee to End Homelessness meeting, a Huntington Beach Search and Rescue Post 563 fundraiser, and a Beautification, Landscaping and Trees Committee meeting. He also reported meeting with representatives from the Huntington Beach Firefighters' Association (HBFA). Councilmember Peterson announced his appointment of Allen Ray (former Investment Advisory Board appointee) to the Planning Commission, and Mark Ellett to the Investment Advisory Board to replace Allen Ray. CITY MANAGER’S REPORT 1. City Manager Fred Wilson updated the City Council on the uses for the current Rodgers Center building, located at 1706 Orange Avenue. City Manager Wilson provided a PowerPoint presentation entitled Plan for Use of the Rodgers Seniors' Center Building with slides titled Planned Interim Uses, and Potential Future Uses/Costs. City Manager Wilson also announced an Open House on May 6th to allow the public to come and see the planned changes. Councilmember Hardy and Mr. Wilson discussed that currently the gates on that property are now unlocked, and the fencing was put up to prevent vandalism. CONSENT CALENDAR Councilmember Hardy pulled Consent Calendar Item No. 6 for further discussion. Councilmember Semeta pulled Consent Calendar Item No. 4 for further discussion. 2. Approved and adopted minutes HB -65-Item 3. - 8 Council/PFA Regular Minutes April 3, 2017 Page 9 of 14 A motion was made by O’Connell, second Hardy to review and adopt the City Council/Public Financing Authority regular meeting minutes dated March 20, 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: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 3. Approved Cal OES Violence Against Women Act Grant (LE16 09 6860) for the 2017 calendar year which includes accepting the grant between the State of California, Governor’s Office of Emergency Services (Cal OES) and the City; Approved the appropriation and expenditure of $272,183, of which $204,137 is to be fully reimbursed by the grant from Cal OES; and, amend the Professional Services Listing to include provided domestic violence services. A motion was made by O’Connell, second Hardy to accept the grant between the State of California, Governor's Office of Emergency Services (Cal OES) and the City of Huntington Beach; and, approve the appropriation and expenditure of $272,183 of which $204,137 is to be fully reimbursed by the grant from Cal OES. The remaining $68,046 will be funded from appropriations in the police department's budget; and, amend the Professional Services Listing to include provided domestic violence services. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 4. Approved City Council Position on Legislation Pending before Congress and the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) Councilmember Semeta pulled this item to discuss Part A) a City position of support for the highest possible funding for FY 2018 for the Transportation, Housing and Urban Development (T-HUD) bill. Councilmember Semeta's recommendation is to put this in a "watch" position to see what the actual bill is before approving it. Councilmembers Brenden and Peterson voiced their support for amending Part A) to a "watch" position. Mayor Pro Tem Posey voiced his opinion to alert voters that Part H), SB 35, would remove or limit local control for the Affordable Housing process, and that he opposes SB 35. A motion was made by Semeta, second Peterson to approve a WATCH POSITION for the highest possible funding for FY 2018 for the Transportation, Housing, and Urban Development (T-HUD) bill. The motion carried by the following vote: AYES: Semeta, Posey, Brenden, and Peterson NOES: O’Connell, Delgleize, and Hardy A motion was made by Semeta, second Peterson to approve a City position of Oppose on AB 199 (Chu) Public Works: Private Residential Projects; and, approve a City position of Support on AB 572 (Quirk- Silva) Alcoholism or Drug Treatment Facilities: Orange County pilot program; and, approve a City HB -66-Item 3. - 9 Council/PFA Regular Minutes April 3, 2017 Page 10 of 14 position of Support on AB 346 (Daly) Redevelopment: Housing Successor Low Moderate Income Housing Asset Fund; and, approve a City position of Support on AB 285 (Melendez) Drug and Alcohol Free Residences; and, approve a City position of Oppose on SB 649 (Hueso) Wireless Telecommunication Facilities; and, approve a City position of Oppose on AB 252 (Ridley-Thomas) Local Government: Taxation Prohibition Video Streaming Services; and, approve a City position of Oppose on SB 35 (Wiener) Planning and Zoning Affordable Housing Streamlined Approval Process; and, approve a City position of Oppose of SB 57 (Stern) Natural Gas Storage Moratorium. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 5. Approved 2015-16 Annual Compliance reports for Public Library Facilities, Parkland Acquisition and Park Facilities, Law Enforcement Facilities and Fire Suppression Facilities Development Impact Fees (DIF), Planned Local Drainage Facilities, Sanitary Sewer Facilities and Fair ShareTraffic Impact Mitigation A motion was made by O’Connell, second Hardy to approve the Annual Compliance Report, "Public Library Facilities Development Impact Fees Annual Report Fiscal Year 2015-16;" and, approve the Annual Compliance Report, "Parkland Acquisition and Park Facilities Development Impact Fees Annual Report Fiscal Year 2015-16;" and, approve the Annual Compliance Report, "Law Enforcement Facilities Development Impact Fees Annual Report Fiscal Year 2015-16;" and, approve the Annual Compliance Report, "Fire Suppression Facilities Development Impact Fees Annual Report Fiscal Year 2015-16;" and, approve the "Planned Local Drainage Facilities Fund Annual Compliance Report for Fiscal Year 2015- 16;" and, approve the "Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year 2015- 16;" and, approve the "Fair Share Traffic Impact Mitigation Fee Program Annual Compliance Report for Fiscal Year 2015-16." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 6. Approved Conceptual Master Plan of Improvements for Irby Park, update of the Irby Park Master Plan, and potential updates and/or changes to the existing park Councilmember Hardy pulled this item to provide the history and involvement of the neighborhood residents in this project, and to thank everyone for participating. A motion was made by Hardy, second Brenden to approve the Conceptual Master Plan for Improvements at Irby Park as presented; and, approve updating the Irby Park Master Plan, along with potential updates and/or changes to the existing park. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None HB -67-Item 3. - 10 Council/PFA Regular Minutes April 3, 2017 Page 11 of 14 7. Adopted Resolution No. 2017-12 establishing Permit Parking District “U” affecting residents along Polynesian Lane and Regatta Drive in Huntington Beach A motion was made by O’Connell, second Hardy to adopt Resolution No. 2017-12, "A Resolution of the City Council of the City of Huntington Beach Establishing Permit Parking District "U" on Regatta Drive and Polynesian Lane within the City of Huntington Beach." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None ORDINANCES FOR INTRODUCTION 8. Approved for introduction Ordinance Nos. 4117, 4118, 4119, 4124 and 4129, amending the Huntington Beach Municipal Code to enhance law enforcement efforts to provide public safety and quality of life in Huntington Beach related to sidewalks, beach regulations, camping on public property, park regulations and refuse management; and, adopted Resolution 2017-03 regarding camping on public property Councilmember O'Connell recused himself from this item due to the fact that he has a business investment at Legends which is within 500 feet of an area impacted by these Ordinances, and left the dais. City Manager Fred Wilson introduced Police Captain Kelly Rodriguez who gave a PowerPoint presentation entitled: Updating City Municipal Codes with slides entitled: Updating City Municipal Codes (3), Proposed New Municipal Code, Updating City Municipal Codes (2), Proposed New Municipal Code, Updating City Municipal Codes, and Comments/Questions? Councilmember Brenden confirmed with Police Captain Rodriguez that the wording related to Camping on Public Property has previously been challenged but upheld. A motion was made by Peterson, second Posey to, after City Clerk reads by title(s), approve for introduction Ordinance No. 4117, "An Ordinance of the City of Huntington Beach Amending Chapter 12.32 of the Huntington Beach Municipal Code Relating to Sidewalks;" and, approve for introduction Ordinance No. 4118, "An Ordinance of the City of Huntington Beach Amending Chapter 13.08 of the Huntington Beach Municipal Code Relating to Beach Regulations;" and, approve for introduction Ordinance No. 4119, "An Ordinance of the City of Huntington Beach Amending Chapter 13.10 of the Huntington Beach Municipal Code Relating to Camping on Public Property;" and, approve for introduction Ordinance No. 4124, "An Ordinance of the City of Huntington Beach Amending Chapter 13.48 of the Huntington Beach Municipal Code Relating to Park Regulations;" and, approve for introduction Ordinance No. 4129, "An Ordinance of the City of Huntington Beach Amending Chapter 8.21 of the Huntington Beach Municipal Code Relating to Refuse Management;" and, adopt Resolution No. 2017-13, "A Resolution of the City Council of the City of Huntington Beach Regarding the Administrative Procedure for the Removal of Unlawful Campsites, Bulky Items, and Personal Property." The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Brenden, and Peterson NOES: None RECUSED: O’Connell HB -68-Item 3. - 11 Council/PFA Regular Minutes April 3, 2017 Page 12 of 14 OUT OF ROOM: Hardy Upon returning to the dais, Councilmember O’Connell went on the record to voice his concerns about how some of the law enforcement efforts to provide public safety and quality of life in Huntington Beach actually result in penalizing or criminalizing the homeless. COUNCILMEMBER ITEMS 9. Submitted by Mayor Pro Tem Posey and Councilmember Peterson – Direct the City Manager to issue a Request for Proposal for Parking Management Services for the Main Promenade Parking Structure Councilmember O'Connell recused himself from this item because of his financial interest in a business within 500 feet of the parking structure. Mayor Pro Tem Posey and Councilmember Peterson discussed their recommendation for an RFP for parking management services at the Main Promenade Parking Structure to help determine if an outside contractor might deliver more customer service and increased revenues to the City. They also indicated that the RFP should consider demand-level parking for the structure. Councilmember Hardy asked if a parking pass would continue to work in the structure, and confirmed with staff that there would be no obligation to accept any RFP if Council decided to stay with the status quo. She also confirmed that the RFP will include operating the parking service and maintaining the structure. Councilmember Brenden suggested that the RFP include an option for City control of the parking cost. A motion was made by Posey, second Peterson to direct the City Manager to issue a Request for Proposal for Parking Management Services for the Main Promenade Parking Structure within 60 days. The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None RECUSED: O’Connell 10. Submitted by Councilmember O’Connell – Consider establishing a City Council Ad Hoc Committee on Homelessness Councilmember O'Connell introduced this item by providing some statistics about costs related to homelessness in Orange County and stated his opinion that efforts to reach out and empower people in a homeless situation can result in success not only for the individuals but the community as a whole. He further shared that the City lacks a comprehensive strategy for addressing the homeless issue, and recommends an Ad Hoc Committee on Homelessness, consisting of himself, Mayor Delgleize and Councilmember Brenden, be established by the Mayor to work with the proper stakeholders to provide the needed direction. Mayor Delgleize and Councilmember Brenden voiced their support of this item. Councilmember Brenden further stated that he sees the Ad Hoc Committee as an umbrella to help coordinate county-wide existing homeless services. HB -69-Item 3. - 12 Council/PFA Regular Minutes April 3, 2017 Page 13 of 14 Councilmember Peterson voiced his opinion that the City's Public Safety and Public Works teams have implemented some of the Homelessness Task Force recommendations made a year ago, and that the City should not be “compassionate” by using tax monies for the benefit of another individual. It is up to each individual to show compassion and provide the funding for solutions. He believes an Ad Hoc Committee could help by coordinating and utilizing the many resources which already exist. Councilmember Semeta commended the Homelessness Task Force, the Police Department and the Social Worker for the tremendous effort they have put into the homeless issue this past year. Councilmember Semeta also suggested a "regional" approach for the Ad Hoc Committee. Mayor Pro Tem Posey shared that through the efforts of the Homelessness Task Force, Catherine Lukehart and Deputy Director of Economic Development Kellee Fritzal's office, about 25 percent of the City's homeless have been housed; the remaining 75 percent are "service resistant." He is in support of the Ad Hoc Committee, and suggests that they consider the return on investment, i.e., service costs vs. the savings in social services and law enforcement. The costs and savings need to be quantified, and there needs to be ways to engage those who are service resistant. A motion was made by O’Connell, second Brenden for the Mayor to establish a City Council Ad Hoc Committee comprised of Councilmember O'Connell, Mayor Delgleize and Councilmember Brenden to work with key stakeholders to formulate a homelessness work plan based upon the recommendations of the Homelessness Task Force for Council's further review and action. The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None 11. Submitted by Councilmember O’Connell – Reaffirm the City’s Declaration of Policy about Human Dignity Mayor Pro Tem Posey stated that he supports Councilmember O'Connell's efforts to reaffirm the City's Declaration of Policy about Human Dignity, but doesn't believe a resolution on this issue is necessary because a government mandate is not appropriate. Councilmember Hardy stated that the City's Declaration of Policy about Human Dignity should be reaffirmed annually. City Clerk Robin Estanislau confirmed that in 1997 the Policy was approved as a declaration and was memorialized by being included in the minutes, but no resolution was passed. Mayor Delgleize suggested that this Council should acknowledge the former Council Members for creating the Declaration and reaffirm support for this Policy. A motion was made by O’Connell, second Posey that the City Council reaffirm the City's support for the "Declaration of Policy About Human Dignity." The motion carried by the following vote: AYES: O’Connell, Semeta, Posey, Delgleize, Hardy, Brenden, and Peterson NOES: None COUNCILMEMBER COMMENTS (Not Agendized) HB -70-Item 3. - 13 Council/PFA Regular Minutes April 3, 2017 Page 14 of 14 Councilmember Semeta reminded everyone that April is Autism Awareness Month and she thanked the teachers and therapists who help people with autism. Councilmember Hardy provided an update on the Huntington Beach Reads One Book program and shared that this year's author discussed his writing process when meeting with local high school students. Councilmember Brenden reported attending an Eagle Court of Honor for Michael Pham and Dominick Laff oon, a dinner for the Pacifica District of the Boy Scouts, toured the Tank Farm project, attended the 19th Annual Lion's Club Crab Fest, the Huntington Beach Police and Community Foundation dinner, the Casino Night fundraiser for Huntington Beach Education Foundation, and joined 200 other volunteers to build a playground for the Boys and Girls Club. Mayor Pro Tem Posey reported attending the Nowruz Festival (Persian New Year) in Irvine, Huntington Beach Police Department Community Foundation Fundraiser, and the McKenna Claire Foundation Golf Tournament. Councilmember O'Connell gave a big shout out to Huntington Beach High School for recognizing Huntington Beach First Responders at a recent baseball game, and reported attending a Huntington Beach Surf Museum swim out, a Southern California Edison Executive Committee customer briefing meeting, the Huntington Beach Tomorrow Annual Meeting, the Huntington Beach Search and Rescue Explorer Program's First Annual Banquet in support of the 64 explorer members, the Huntington Beach Police Officers' Foundation dinner, and the Community Action Partnership of Orange County Recognition event. Mayor Delgleize reported participating in the Huntington Beach Meals on Wheels delivery program, and the Huntington Beach Search and Rescue Explorer Program's First Annual Banquet. She also announced that June 20th is International Surfing Day. Councilmember Peterson reported that Jack's Surfboards is celebrating 60 years in Huntington Beach. RECESSED to Closed Session Item #4 — 9:17 PM ADJOURNMENT — At 9:36 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, April 17, 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 HB -71-Item 3. - 14 Dept. ID PW 17-019 Page 1 of 2 Meeting Date: 5/1/2017 Statement of Issue: On April 4, 2017, bids were opened for the Operetta Drive & Opera Lane Rehabilitation Project, CC-1543. City Council Action is requested to award the construction contract to All American Asphalt, the lowest responsive and responsible bidder. Financial Impact: Funds in the amount of $480,500 are available in the Gas Tax fund No. 20790052.82300 Recommended Action: A) Accept lowest responsive and responsible bid submitted by All American Asphalt in the amount of $416,344; and, B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): Reject all bids and provide staff with an alternative direction. Analysis: This project will rehabilitate the Operetta Drive and Opera Lane, from Fantasia Lane to Scenario Drive, on the established Tree Petition Program and was picked for construction based upon current street condition. The scope of work includes removal and replacement of concrete sidewalks, driveway approaches, curb and gutter, landscaped parkways, and curb ramps. The asphalt roadway will include a cold mill and overlay with new asphalt due to previous damage from existing tree roots. In addition, existing utilities will be adjusted to new finished surface. The bids were publically opened on April 4, 2017. The verified bid amounts are listed below: Bidding Contractor Submitted Bid Verified Bid ALL AMERICAN ASPHALT $416,344.00 $416,344.00 EBS GENERAL ENGINEERING $430,440.00 $430,440.00 NOBEST $449,000.00 $449,000.00 EXCEL PAVING $471,865.00 $471,865.00 HARDY & HARPER $476,000.00 $476,000.00 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/1/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Award and authorize execution of a construction contract with All American Asphalt in the amount of $416,344 for the Operetta Drive & Opera Lane Rehabilitation Project, CC-1543 HB -72-Item 4. - 1 Dept. ID PW 17-019 Page 2 of 2 Meeting Date: 5/1/2017 HYM ENGINEERING $485,870.00 $485,870.00 VIDO SAMARZICH $497,080.00 $498,580.00 GRIFFITH COMPANY $511,950.00 $511,950.00 Staff recommends award of the construction contract to All American Asphalt, in the amount of $416,344. The contractor has provided successful projects for the City in the past. The total estimated project cost is $480,500, which includes the construction contract, project management, construction contingency and supplemental expenses (inspection services). Public Works Commission Action: The Public Works Commission reviewed and approved the project on November 16, 2016, with a vote of 6-0-1 (Strook Absent). Environmental Status: The project is categorically exempt pursuant to Class 1, Section 15301 (c) of California Environmental Quality Act. Strategic Plan Goal: Enhance and maintain infrastructure Attachment(s): 1. Location Map HB -73-Item 4. - 2 \ C AN NTS OPERETTA DR. (FANTASIA LN. - SCENARIO DR.) TREE PETITION STREET IMPROVEMENTS 00-1543 PROJECT LOCATION MAP CITY OF HUNTINGTON BEACH DEPARTMENT OF PUBLIC WORKS .1 HB -74-Item 4. - 3 Dept. ID AD-15-014 Page 1 of 4 Meeting Date: 5/1/2017 Statement of Issue: On April 26, 2017, the Intergovernmental Relations Committee met to discuss Federal and State legislation. This action requests the City Council authorization for the Mayor to sign City position letters on pending Federal and State legislation. Financial Impact: There is no fiscal impact at this time. Recommended Action: A) Approve a City position Support in concept on House Resolution No. 472 – Safe Recovery and Community Empowerment Act; B) Approve a City position of Support on Senate Constitutional Amendment 1: No Secure Choice Ballot; C) Approve a City position of Support on Senate Constitutional Amendment 8: California Rule; D) Approve a City position of Support on Senate Constitutional Amendment 10: Pension Transparency; E) Approve a City position of Support on SB 32 (Moorlach) – Public Employees’ Pension Reform Act of 2018; F) Approve a City position of Support on SB 454 (Moorlach) – Retiree Healthcare Reform; G) Approve a City position of Support on SB 681 (Moorlach) – Local Pension Control; H) Approve a position of Oppose on AB 1129 (Stone) Coastal Structures Beach Access and Protection; I) Approve a position of Support on AB 629 (Harper) Alcoholic Beverage Licences: Art Galleries; J) Approve a position of Support on SB 242 (Skinner) PACE Consumer Protections; and K) Approve a position of Oppose on AB 1250 (Jones-Sawyer) Counties and Cities: Contracts for Personal Services Alternative Action(s): There is no fiscal impact. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/1/2017 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: City Council Position on Legislation Pending Before the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) HB -75-Item 5. - 1 Dept. ID AD-15-014 Page 2 of 4 Meeting Date: 5/1/2017 Analysis: On Wednesday, April 26, 2017, the Intergovernmental Relations Committee met to discuss pending Federal and State legislation. The Committee reviewed the 2017 State Legislative Matrix provided by the City’s State Advocate, Townsend Public Affairs (TPA). The Committee members chose to take the following positions on pending legislation. Support – House Resolution No. 472 – Safe Recovery and Community Empowerment Act This bill amends the Fair Housing Act to provide that nothing in federal law relating to protections for persons with disabilities prohibits a local, state, or federal government body from: (1) requiring a reasonable minimum distance between residential recovery facilities within a particular area zones for residential housing if such requirement is necessary to preserve the residential character of the area and allows for some of such facilities to be located within such area; and (2) requiring that such a facility obtain an operating license or use permit or satisfy a set of consumer protection standards, which may include a maximum capacity requirement. The Committee voted to support this bill in concept as it does not properly address the problem of sober living homes because it fails to address the Americans with Disabilities Act. Support – Senate Constitutional Amendment 1 – Retirement Savings This amendment would neither prevent nor prohibit the Secure Choice Program from being establishes or operated. This measure merely ensures that the California taxpayers do not cover the costs and/or unfunded liabilities for a state-run retirement system for private sector employees. Support – Senate Constitutional Amendment 8 – Public Employees Retirement Benefits This amendment would give the Legislature and the public pension systems the ability to adjust public employees’ retirement benefit formulas on a prospective basis. Support - Senate Constitutional Amendment 10 – Public Employee Retirement Benefits This amendment does not prohibit public employees from receiving additional retirement benefits; it simply requires voter approval before they are increased. Support – SB 32 (Moorlach) – Public Employees’ Pension Reform Act of 2018 This bill will specifically establish a Citizens’ Pension Oversight Committee to review pensions year- by-year and report to the public on actual pension costs and obligations, base final compensation for all public employees on an average of five years of highest years’ salary, prohibit or freeze the ability for cost of living adjustments until CalPERS and CalSTRS are 100% funded, require pension boards to create a defined benefit/defined contribution hybrid pension plan for new employees who opt into the system, require that any employee who separates from the state pension system for a different job and returns after more than one year be re-classified in that pension system as a new employee, and many more reforms. Support – SB 454 (Moorlach) – Retiree Healthcare Reform This bill requires the Annual OPEB Cost (AOC) be 100% funded, eliminates the Other Post- Employment Benefits (OPEB) 50/50 cost-share-split between the state and its employees, and requires 100% of the benefit be paid by the state. SB 454 also requires all state employees to use the 80/80 formula for basic health benefit plan premiums. Support – SB 681 (Moorlach) Local Pension Control HB -76-Item 5. - 2 Dept. ID AD-15-014 Page 3 of 4 Meeting Date: 5/1/2017 This bill will give local jurisdictions the ability to leave their contracts with CalPERS without being excessively charged or penalized. Oppose - AB 1129 (Stone) – Coastal Structures Beach Access and Protection This act requires the permitting of revetments, breakwaters, groins, harbor channels, seawalls, cliff retaining walls, and other such construction that alters natural shoreline processes when required to serve coastal-dependent uses or to protect existing structures or public beaches in danger from erosion and when designed to eliminate or mitigate adverse impacts on local shoreline sand supply. The bill would also require that permitted construction of those structures be consistent with the policies of the act, including policies regarding protection of public access, shoreline ecology, natural landforms, and other impacts on coastal resources, and would define the term “existing structure.” The act would require any person wishing to perform or undertake any development in the coastal zone, to obtain a coastal development permit. Support - AB 629 (Harper) – Alcoholic Beverages: Licenses: Art Galleries This bill would provide that a license or permit is not needed for an art gallery to provide wine and beer to patrons, for consumption on gallery premises, subject to specified conditions, including that the price of wine and beer is not included in the sales price of any piece of art or merchandise sold by the gallery. Support - SB 242 (Skinner) – PACE Administration Consumer Protections This bill adds requirements to program administrators related to notification of key contract terms and eligible improvement measures as approved by the sponsoring agency. This bill also adds limits to contractors to prevent advertising and soliciting property owners, or receiving cash payments or incentives. These improvements will strengthen the program and provide for needed consumer protections. Oppose - AB 1250 (Jones-Sawyer) – Counties and Cities: Contracts for Personal Services This bill would establish specific standards for the use of personal services contracts by counties and cities. The bill beginning in 2018 would allow a county or county agency, or city or city agency, to contract for personal services currently or customarily performed by county employees, as applicable, when specified conditions are met. Among other things, the bill would require the county or city to clearly demonstrate that the proposed contract will result in actual overall cost savings to the county or city and also to show that the contract does not cause the displacement of county or city workers. The Intergovernmental Relations Committee approved a support position on Senate Constitutional Amendment 1, Senate Constitutional Amendment 8, Senate Constitutional Amendment 10, Senate Bill 32, Senate Bill 454, Senate Bill 681, AB 629, and SB 242. Council Member hardy voted No on Support for Senate Constitutional Amendment 8. The Committee approved an oppose position on AB 1129 and AB 1250. Environmental Status: Not applicable. Strategic Plan Goal: Improve quality of life Attachment(s): 1. House Resolution 472 HB -77-Item 5. - 3 Dept. ID AD-15-014 Page 4 of 4 Meeting Date: 5/1/2017 2. Fact Sheet – Senate Constitutional Amendment 1 3. Fact Sheet – Senate Constitutional Amendment 8 4. Fact Sheet – Senate Constitutional Amendment 10 5. SB 32 – Public Employees’ Pension Reform Act of 2018 6. SB 454 – Retiree Healthcare Reform 7. SB 681 – Local Pension Control 8. AB 1129 – Coastal Structures Beach Access and Protection 9. AB 629 – Alcoholic Beverages Licenses: Art Galleries 10. SB 242 – PACE Administration Consumer Protections 11. AB 1250 – Counties and Cities Contracts for Personal Services HB -78-Item 5. - 4 AMENDED IN SENATE APRIL 17, 2017 SENATE BILL No. 681 Introduced by Senator Moorlach February 17, 2017 An act to add Section 20570.1 to the Government Code, relating to public employees’ retirement. legislative counsel’s digest SB 681, as amended, Moorlach. Public employees’ retirement. retirement: contracting agencies: termination. The Public Employees’ Retirement Law creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employer’s contribution. This bill would state the intent of the Legislature to subsequently amend this bill to include provisions to allow the governing body of a public agency that contracts with PERS for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the agency, to allow a public agency terminating its contract to have the ability to withdraw its assets paid into the system with the same rote of return, and to ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities. require the Board of 98 HB -79-Item 5. - 5 Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings. Vote: majority. Appropriation: no. Fiscal committee: no yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. It is the intent of the Legislature to subsequently line 2 amend this measure to include provisions as follows: do the line 3 following: line 4 (a)  To allow Allow the governing body of a public agency that line 5 contracts with the Public Employees’ Retirement System (PERS) line 6 for employee retirement benefits to terminate its contract with the line 7 system in a manner that does not result in excessive costs or line 8 penalties to the public agency. line 9 (b)  To allow Allow a public agency that terminates its contract line 10 with the system to have the ability to withdraw its net assets paid line 11 into the system with the original assumed rate of return included line 12 in the withdrawal. system, less payments made to its members and line 13 their beneficiaries. line 14 (c)  To ensure Ensure that a public agency that terminates its line 15 contract with the system shall remain responsible for any of its line 16 unfunded liabilities for employee retirement benefits so that those line 17 liabilities are not shifted onto other participants in PERS. 98 — 2 —SB 681 HB -80-Item 5. - 6 line 1 SEC. 2. Section 20570.1 is added to the Government Code, to line 2 read: line 3 20570.1. (a)  Notwithstanding any other law, the board shall line 4 allow a contracting agency to terminate its contract with the system line 5 in a manner that does all of the following: line 6 (1)  Does not result in excessive costs or penalties to the line 7 contracting agency. line 8 (2)  Allows the contracting agency to withdraw its net assets line 9 paid into the system, less payments made to its members and their line 10 beneficiaries. line 11 (3)  Ensures that the contracting agency remains responsible line 12 for its unfunded liabilities for employee retirement benefits so that line 13 those liabilities are not shifted onto other participants in the line 14 system. line 15 (b)  For a contracting agency to be eligible to terminate its line 16 contract, the contract shall be in effect for at least five years and line 17 approved by an ordinance or resolution adopted by the governing line 18 body of the contracting agency. The governing body may terminate line 19 the contract by the adoption of a resolution giving notice of line 20 intention to terminate, and by the adoption, not less than one year line 21 thereafter by the affirmative vote of two-thirds of the members of line 22 the governing body, of an ordinance or resolution terminating the line 23 contract. Upon board approval, termination shall be effective on line 24 the date designated in the ordinance or resolution terminating the line 25 contract. line 26 (c)  The agreement between the contracting agency and the line 27 board shall contain provisions to protect the interests of the system, line 28 including provisions for determining the amount, time, and manner line 29 of transfer of cash or securities, or both, to be transferred to the line 30 contracting agency representing the value of the contracting line 31 agency’s interests in the retirement fund and its employees’ line 32 interests based on accumulated contributions and accumulated line 33 rate of return, to be credited to the agency and its employees. line 34 (d)  A contracting agency, before terminating its contract with line 35 the system, shall determine how termination would affect the health line 36 care benefits of its members and also shall determine the federal line 37 tax ramifications associated with its decision. O 98 SB 681— 3 — HB -81-Item 5. - 7 AMENDED IN SENATE MARCH 2, 2017 SENATE BILL No. 32 Introduced by Senator Moorlach December 5, 2016 An act to amend Section 22217 of the Education Code, and to amend Sections 7522.34 and 20228 of, to add Sections 7512.5, 20140, 20141, 20418, and 20818 to, and to add Article 5 (commencing with Section 7523) to Chapter 21 of Division 7 of Title 1 of, the Government Code, relating to public employees’ retirement. retirement, and making an appropriation therefor. legislative counsel’s digest SB 32, as amended, Moorlach. Public employees’ retirement. California Public Employees’ Pension Reform Act of 2018. (1)  The Public Employees’ Retirement Law creates the Public Employees’ Retirement System (PERS), and the Teachers’ Retirement Law creates the State Teachers’ Retirement System (STRS), for the provision of service, disability, and other benefits to members. Existing law vests the Teachers’ Retirement Board, which administers STRS, and the Board of Administration of PERS with fiduciary responsibility over the assets of their respective retirement systems and requires the boards to, among other things, employ public accountants who are not in public employment to audit the financial statements of the systems, as specified. This bill would create the Citizens’ Pension Oversight Committee to serve in an advisory role to the Teachers’ Retirement Board and the Board of Administration of PERS. The bill would require the committee, on or before January 1, 2019, and annually thereafter, to review the actual pension costs and obligations of PERS and STRS and report on 98 HB -82-Item 5. - 8 these costs and obligations to the public and would require reports of audits of STRS and PERS conducted by the public accountants described above to be filed with the committee for this purpose. (2)  Under the Public Employees’ Retirement Law, benefits provided by PERS are funded by employer and employee contributions and investment returns. Existing law requires the Board of Administration of PERS to set and adjust employer contribution rates in relation to the system’s actuarial liability and provides for the deposit of employer contributions into the Public Employees’ Retirement Fund, a continuously appropriated fund. Existing law authorizes the board to adopt a funding period of 30 years to amortize unfunded accrued actuarial obligations for current and prior service for the purpose of determining employer contribution rates for contracting agencies and school employers and to adopt an amortization period of 40 years for any unfunded actuarial liability for the benefits applicable to all state miscellaneous members and all state peace officer/firefighter members. This bill would require the board to determine what the level of the unfunded liability of PERS was in 1980 and would further require the board to reduce the unfunded liability of PERS to that level, to be achieved by 2030, with the goal of fully funding PERS. The bill, in any year in which the unfunded actuarial liability of PERS is greater than zero, would require the board to increase the employer contribution rate otherwise provided by law for the state, contracting agencies, and school employers by 10 percent. By increasing deposits into a continuously appropriated fund, the bill would make an appropriation. (3)  Existing law prescribes different benefit formulas for members of PERS depending on a member’s classification and date of entry into the system, among other factors. This bill would require the Board of Administration of PERS, on or before January 1, 2019, to develop and submit to the Legislature for approval a hybrid plan consisting of defined benefit and defined contribution components, as specified, and would require the plan to be applied to members who elect to be subject to the plan or who are first employed by the state, a contracting agency, or a school employer and become members of the system on or after the approval of the plan by the Legislature. The bill would further require the board, on or before January 1, 2019, to review the duties of officers and employees in positions included in the safety member classification pursuant to certain provisions of the Public Employees’ Retirement Law and reclassify the positions according to specified criteria. The bill would 98 — 2 —SB 32 HB -83-Item 5. - 9 apply this reclassification to persons who are first employed by the state and become state members of PERS on or after January 1, 2018. (4)  The California Public Employees’ Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with the act and, among other provisions, provides that the pensionable compensation of a new member of the system is the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members, as specified. PEPRA also requires the final compensation used to determine a retirement benefit to be paid to the new member to be the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months, or at least 3 consecutive school years if applicable, as specified. This bill would prohibit a public retirement board from deeming certain forms of pay to be pensionable compensation and would make related legislative findings and declarations. This bill would enact the California Public Employees’ Pension Reform Act of 2018 (PEPRA 2018). The bill, for an individual who becomes a member of any public retirement system, as defined, for the first time on or after January 1, 2018, and who was not a member of any other public retirement system prior to that date, would require the final compensation used to determine the member’s retirement benefits to be the highest annual pensionable compensation earned by the member during a period of at least 60 consecutive months, or at least 5 consecutive school years if applicable, as specified. The bill would also provide that if the member leaves the employment of a public employer participating in a public retirement system for other employment, as specified, and is subsequently reemployed by the public employer at least one year later, the member will be subject to the same benefits, contributions, and other terms and conditions applicable to an individual who becomes a member of the public retirement system for the first time on the date of the member’s return, for service rendered on or after that date. (5)  Existing law provides for the application of cost of living adjustments to allowances paid to persons retired under, or survivors or beneficiaries of members or persons retired under, various public retirement systems. The bill, as part of PEPRA 2018, would prohibit a public retirement system from making a cost of living adjustment to any allowance payable to, or on behalf of, a person retired under the system, or to any survivor 98 SB 32— 3 — HB -84-Item 5. - 10 or beneficiary of a member or person retired under the system, for any year beginning on or after January 1, 2018, in which PERS or STRS is not fully funded. The California Public Employees’ Pension Reform Act of 2013, on and after January 1, 2013, established various limits on retirement benefits generally applicable to a public employee retirement system in the state, with specified exceptions. This bill would state the intent of the Legislature to enact legislation to resume the public employee pension reform begun in the California Public Employees’ Pension Reform Act of 2013. Vote: majority. Appropriation: no yes. Fiscal committee: no yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 22217 of the Education Code is amended line 2 to read: line 3 22217. (a)  The board shall employ a certified public accountant line 4 or public accountant, who is not in public employment, to audit line 5 the financial statements of the system. The costs of the audit shall line 6 be paid from the income of the retirement fund. The audit shall be line 7 made annually and the audit report shall be incorporated into the line 8 annual report filed with the Governor and the Legislature pursuant line 9 to Section 22324. A copy of the audit report shall also be filed line 10 with the Citizens’ Pension Oversight Committee created by Section line 11 7512.5 of the Government Code. line 12 (b)  These audits shall not be duplicated by the Department of line 13 Finance or the State Auditor. The system shall be exempt from a line 14 pro rata general administrative charge for auditing. line 15 SEC. 2. Section 7512.5 is added to the Government Code, to line 16 read: line 17 7512.5. (a)  The Citizens’ Pension Oversight Committee is line 18 hereby created. The committee shall serve in an advisory role to line 19 the Board of Administration of the Public Employees’ Retirement line 20 System and the Teachers’ Retirement Board. The committee shall line 21 consist of no more than nine members, and no less than five line 22 members, jointly appointed by the Board of Administration of the line 23 Public Employees’ Retirement System and the Teachers’ line 24 Retirement Board from persons with experience in fiduciary 98 — 4 —SB 32 HB -85-Item 5. - 11 line 1 matters who do not receive benefits from the Public Employees’ line 2 Retirement System or the State Teachers’ Retirement System. line 3 (b)  On or before January 1, 2019, and annually thereafter, the line 4 committee shall review the actual pension costs and obligations line 5 of the Public Employees’ Retirement System and the State line 6 Teachers’ Retirement System and report on these costs and line 7 obligations to the public. As part of this review, the committee line 8 shall review the audit reports filed with the committee pursuant line 9 to Section 22217 of the Education Code and Section 20228 of this line 10 code. line 11 SEC. 3. Section 7522.34 of the Government Code is amended line 12 to read: line 13 7522.34. (a)  “Pensionable compensation” of a new member line 14 of any public retirement system means the normal monthly rate line 15 of pay or base pay of the member paid in cash to similarly situated line 16 members of the same group or class of employment for services line 17 rendered on a full-time basis during normal working hours, line 18 pursuant to publicly available pay schedules, subject to the line 19 limitations of subdivision (c). line 20 (b)  Compensation that has been deferred shall be deemed line 21 pensionable compensation when earned rather than when paid. line 22 (c)  Notwithstanding any other law, “pensionable compensation” line 23 of a new member does not include the following: line 24 (1)  Any compensation determined by the board to have been line 25 paid to increase a member’s retirement benefit under that system. line 26 (2)  Compensation that had previously been provided in kind to line 27 the member by the employer or paid directly by the employer to line 28 a third party other than the retirement system for the benefit of the line 29 member and which was converted to and received by the member line 30 in the form of a cash payment. line 31 (3)  Any one-time or ad hoc payments made to a member. line 32 (4)  Severance or any other payment that is granted or awarded line 33 to a member in connection with or in anticipation of a separation line 34 from employment, but is received by the member while employed. line 35 (5)  Payments for unused vacation, annual leave, personal leave, line 36 sick leave, or compensatory time off, however denominated, line 37 whether paid in a lump sum or otherwise, regardless of when line 38 reported or paid. line 39 (6)  Payments for additional services rendered outside of normal line 40 working hours, whether paid in a lump sum or otherwise. 98 SB 32— 5 — HB -86-Item 5. - 12 line 1 (7)  Any employer-provided allowance, reimbursement, or line 2 payment, including, but not limited to, one made for housing, line 3 vehicle, or uniforms. line 4 (8)  Compensation for overtime work, other than as defined in line 5 Section 207(k) of Title 29 of the United States Code. line 6 (9)  Employer contributions to deferred compensation or defined line 7 contribution plans. line 8 (10)  Any bonus paid in addition to the compensation described line 9 in subdivision (a). line 10 (11)  Any other form of compensation a public retirement board line 11 determines is inconsistent with the requirements of subdivision line 12 (a). line 13 (12)  Any other form of compensation a public retirement board line 14 determines should not be pensionable compensation. line 15 (13)  (A)  Any form of compensation identified that has been line 16 agreed to be nonpensionable pursuant to a memorandum of line 17 understanding for state employees bound by the memorandum of line 18 understanding. The state employer subject to the memorandum of line 19 understanding shall inform the retirement system of the excluded line 20 compensation and provide a copy of the memorandum of line 21 understanding. line 22 (B)  The state employer may determine if excluded compensation line 23 identified in subparagraph (A) shall apply to nonrepresented state line 24 employees who are aligned with state employees subject to the line 25 memorandum of understanding described in subparagraph (A). line 26 The state employer shall inform the retirement system of the line 27 exclusion of this compensation and provide a copy of the public line 28 pay schedule detailing the exclusion. line 29 (d)  (1)  The Legislature finds and declares that “normal monthly line 30 rate of pay or base pay,” as used in subdivision (a), does not line 31 include, and was not intended to include, incentive pay, educational line 32 pay, premium pay, special assignment pay, or holiday pay. line 33 (2)  Pursuant to paragraph (1), a public retirement board shall line 34 not deem incentive pay, educational pay, premium pay, special line 35 assignment pay, or holiday pay to be a form of compensation line 36 consistent with subdivision (a). line 37 SEC. 4. Article 5 (commencing with Section 7523) is added to line 38 Chapter 21 of Division 7 of Title 1 of the Government Code, to line 39 read: 98 — 6 —SB 32 HB -87-Item 5. - 13 line 1 line 2 Article 5. California Public Employees’ Pension Reform Act line 3 of 2018 line 4 line 5 7523. This article shall be known, and may be cited, as the line 6 California Public Employees’ Pension Reform Act of 2018. line 7 7523.05. For the purposes of this article: line 8 (a)  “Member” means a public employee who is a member of a line 9 public retirement system. line 10 (b)  “New member as of January 1, 2018,” means an individual line 11 who becomes a member of any public retirement system for the line 12 first time on or after January 1, 2018, and who was not a member line 13 of any other public retirement system prior to that date. line 14 (c)  “Public employee” means an officer, including one who is line 15 elected or appointed, or an employee of a public employer. line 16 (d)  (1)  “Public employer” includes: line 17 (A)  The state and every state entity, including, but not limited line 18 to, the Legislature, the judicial branch, including judicial officers, line 19 and the California State University. line 20 (B)  Any political subdivision of the state, or agency or line 21 instrumentality of the state or subdivision of the state, including, line 22 but not limited to, a city, county, city and county, school district, line 23 community college district, joint powers authority, joint powers line 24 agency, and any public agency, authority, board, commission, or line 25 district. line 26 (C)  Any charter school that elects or is required to participate line 27 in a public retirement system. line 28 (2)  Notwithstanding paragraph (1), “public employer” does line 29 not include an entity described in Section 9 of Article IX of, or line 30 Section 4 or 5 of Article XI of, the California Constitution, except line 31 to the extent that the entity elects to make this article, or any section line 32 thereof, applicable to the entity. line 33 (e)  (1)  “Public retirement system” means the Public Employees’ line 34 Retirement System, the State Teachers’ Retirement System, the line 35 Legislators’ Retirement System, the Judges’ Retirement System, line 36 the Judges’ Retirement System II, county and district retirement line 37 systems created pursuant to the County Employees Retirement line 38 Law of 1937 (Chapter 3 (commencing with Section 31450) of Part line 39 3 of Division 4 of Title 3), independent public retirement systems, line 40 and to individual retirement plans offered by public employers. 98 SB 32— 7 — HB -88-Item 5. - 14 line 1 (2)  Notwithstanding paragraph (1), “public retirement system” line 2 does not include a retirement system created by an entity described line 3 in Section 9 of Article IX of, or Section 4 or 5 of Article XI of, the line 4 California Constitution, except to the extent that the entity elects line 5 to make this article, or any section thereof, applicable to the entity. line 6 7523.10. Notwithstanding Section 7522.32 or any other law, line 7 for the purposes of determining a retirement benefit to be paid to line 8 a new member as of January 1, 2018, of a public retirement system, line 9 final compensation shall mean the highest average annual line 10 pensionable compensation earned by the member during a period line 11 of at least 60 consecutive months, or at least five consecutive school line 12 years if applicable, immediately preceding his or her retirement line 13 or last separation from service if earlier, or during any other line 14 period of at least 60 consecutive months, or at least five consecutive line 15 school years if applicable, during the member’s applicable service line 16 that the member designates on the application for retirement. line 17 7523.20. Notwithstanding any other law, except as otherwise line 18 required by Section 9 of Article I of the California Constitution, line 19 a public retirement system shall not make a cost of living line 20 adjustment to any allowance payable to, or on behalf of, a person line 21 retired under the system, or to any survivor or beneficiary of a line 22 member or person retired under the system, for any year beginning line 23 on or after January 1, 2018, in which either of the following is line 24 true: line 25 (a)  The unfunded actuarial liability of the State Teachers’ line 26 Retirement System, as determined by the Teachers’ Retirement line 27 Board, is greater than zero. line 28 (b)  The unfunded actuarial liability of the Public Employees’ line 29 Retirement System, as determined by the Board of Administration line 30 of the Public Employees’ Retirement System, is greater than zero. line 31 7523.30. Notwithstanding any other law, a new member as of line 32 January 1, 2018, of a public retirement system who, on or after line 33 January 1, 2018, leaves the employment of a public employer line 34 participating in the public retirement system for employment with line 35 an employer that does not participate in the public retirement line 36 system and who is subsequently reemployed by the same public line 37 employer at least one year after he or she left, shall, upon the date line 38 of his or her reemployment, be subject to the same benefits, line 39 contributions, and other terms and conditions applicable to an line 40 individual who becomes a member of the public retirement system 98 — 8 —SB 32 HB -89-Item 5. - 15 line 1 for the first time on that date, for service rendered on or after that line 2 date. line 3 SEC. 5. Section 20140 is added to the Government Code, to line 4 read: line 5 20140. (a)  On or before January 1, 2019, the board shall line 6 develop and submit to the Legislature for approval a hybrid plan line 7 that consists of the following: line 8 (1)  A defined benefit component that utilizes low-risk line 9 investments. line 10 (2)  A defined contribution component under which an line 11 employee’s contributions will be matched by employer line 12 contributions up to a certain percent. line 13 (b)  Notwithstanding any other law, a member who is first line 14 employed by the state, a contracting agency, or a school employer line 15 and becomes a member of the system on or after the approval of line 16 the hybrid plan by the Legislature shall participate in the hybrid line 17 plan. line 18 (c)  A member not described in subdivision (b) may elect to line 19 participate in the hybrid plan. line 20 SEC. 6. Section 20141 is added to the Government Code, to line 21 read: line 22 20141. The board shall determine what the level of the line 23 unfunded liability of the system was in 1980 and shall reduce the line 24 unfunded liability of the system to that level, to be achieved by line 25 2030, with the goal of fully funding the system. line 26 SEC. 7. Section 20228 of the Government Code is amended to line 27 read: line 28 20228. The board shall annually employ a certified public line 29 accountant, who is not in public employment, to audit the financial line 30 statements of this system. The costs of the audit shall be paid from line 31 the income of the retirement fund. The audit shall be made line 32 annually. The board shall file a copy of the audit report with the line 33 Governor, the Secretary of the Senate, and the Chief Clerk of the line 34 Assembly. Assembly, and the Citizens’ Pension Oversight line 35 Committee. line 36 The board, for purposes of Section 7504, may file internally line 37 prepared financial statements with the Controller within six months line 38 of the end of the fiscal year, and shall file independently audited line 39 financial statements as soon as they are available. 98 SB 32— 9 — HB -90-Item 5. - 16 line 1 The annual audits of the financial statements of the system shall line 2 not be duplicated by the Department of Finance or the State line 3 Auditor. line 4 This section does not affect the ability of the State Auditor or line 5 the Department of Finance to conduct other types of audits of the line 6 system as otherwise authorized by statute. This system shall be line 7 exempt from a pro rata general administrative charge for auditing. line 8 SEC. 8. Section 20418 is added to the Government Code, to line 9 read: line 10 20418. (a)  On or before January 1, 2019, the board shall line 11 review the duties of officers and employees in positions included line 12 in the safety member classification pursuant to this article and line 13 shall reclassify the positions, for the purposes of the system, as line 14 follows: line 15 (1)  “Patrol member,” “state peace officer/firefighter member” line 16 or “state safety member,” for positions with principal duties that line 17 place the employee or officer in the position in harm’s way. The line 18 board shall not reclassify a position as “patrol member,” “state line 19 peace officer/firefighter member,” or “state safety member” on line 20 the sole basis that the position involves law enforcement. line 21 (2)  “State miscellaneous member” or “state industrial member” line 22 for positions not described in paragraph (1). line 23 (b)  Notwithstanding this article or any other law, the line 24 reclassification of positions pursuant to subdivision (a) shall apply line 25 to any person who is first employed by the state and becomes a line 26 state member of the system on or after January 1, 2018. line 27 SEC. 9. Section 20818 is added to the Government Code, to line 28 read: line 29 20818. Notwithstanding any other law, in any year in which line 30 the unfunded actuarial liability of the system is greater than zero, line 31 the board shall increase the employer contribution rate otherwise line 32 provided by law for the state, contracting agencies, and school line 33 employers by 10 percent. line 34 SECTION 1. It is the intent of the Legislature to enact line 35 legislation to resume the public employee pension reform begun line 36 in the California Public Employees’ Pension Reform Act of 2013. O 98 — 10 —SB 32 HB -91-Item 5. - 17 AMENDED IN SENATE APRIL 6, 2017 SENATE BILL No. 454 Introduced by Senator Moorlach February 16, 2017 An act to amend Section 22944.5 of, and to add Sections 22871.4 22871.4, 22874.5, and 22944.7 to, the Government Code, relating to state public employment. legislative counsel’s digest SB 454, as amended, Moorlach. Public employee’s employees’ health benefits. The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in the employment of employed by the state or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit. This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2018, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, self alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state 98 HB -92-Item 5. - 18 civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans. The bill would provide that if its provisions are in conflict with regard to an employee covered by a memorandum of understanding, the memorandum of understanding would control until it expires. The bill would prescribe the percentage of the employer contribution payable for postemployment health benefits based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service, for an employee of the state, the California State University, and the Legislature, who is employed by the state for the first time and who becomes a state member of the Public Employees’ Retirement System on or after January 1, 2018. PEMHCA establishes the Public Employees’ Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants’ Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs. PEMHCA defines “prefunding” for these purposes. Existing law requires the state and employees of State Bargaining Unit 2, 7, 9, 10, or 12 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018. This bill would require the state, on and after January 1, 2018, to assume all responsibility for prefunding retiree health care. The bill would require the state to prefund retiree health care for state employees, annuitants, and their beneficiaries with the goal of paying 100% of the actuarially determined normal costs by July 1, 2019. The bill would require the state to pay unfunded liabilities that have accrued for retiree health care for state employees, annuitants, and their beneficiaries, as reported by the Controller, as specified, with the goal of paying 50% of the actuarially determined cost of these liabilities by January 1, 2022, and 100% of the actuarially determined cost of these liabilities by January 1, 2026. The bill would require the Controller, by January 10 98 — 2 —SB 454 HB -93-Item 5. - 19 of each year, to provide a report to specified committees of the Legislature that shows, for that year, the actuarially determined normal cost and the unfunded liability of retiree health care for state employees, annuitants, and their beneficiaries and a calculation of the amounts necessary to meet the goals described above. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 22871.4 is added to the Government line 2 Code, to read: line 3 22871.4. (a)  Notwithstanding any other law, the employer line 4 contribution for employees hired on and or after January 1, 2018, line 5 shall be as described in subdivision (b). This section shall not be line 6 construed to create eligibility for an employee who otherwise does line 7 not receive a state contribution for postemployment health care. line 8 (b)  Effective January 1, 2018, the employer contribution for line 9 each employee shall be an amount equal to 80 percent of the line 10 weighted average of the basic health benefit plan premiums for an line 11 active state civil service employee enrolled for self-alone, during line 12 the benefit year to which the formula is applied, for the four basic line 13 health benefit plans that had the largest active state civil service line 14 enrollment, excluding family members, during the previous benefit line 15 year. For each employee with enrolled family members, the line 16 employer shall contribute an additional 80 percent of the weighted line 17 average of the additional premiums required for enrollment of line 18 those family members, during the benefit year to which the formula line 19 is applied, in the four basic health benefit plans that had the largest line 20 active state civil service enrollment, excluding family members, line 21 during the previous benefit year. line 22 (c)  The employer contribution provided under this section is line 23 not applicable unless and until the effective date of the employee’s line 24 enrollment in an approved health benefit plan. line 25 (d)  If the provisions of this section are in conflict with regard line 26 to an employee covered by a memorandum of understanding line 27 reached pursuant to Section 3517.5 or Chapter 12 (commencing line 28 with Section 3560) of Division 4 of Title 1, the memorandum of line 29 understanding shall be controlling until it expires. 98 SB 454— 3 — HB -94-Item 5. - 20 line 1 SEC. 2. Section 22944.5 of the Government Code is amended line 2 to read: line 3 22944.5. (a)   (1)   The state and employees in State Bargaining line 4 Unit 2, 7, 9, 10, or 12 shall prefund retiree health care, with the line 5 goal of reaching a 50-percent cost sharing of actuarially determined line 6 normal costs for both employer and employees by July 1, 2019. line 7 (2)  The state and employees in State Bargaining Unit 6 shall line 8 prefund retiree health care, with the goal of reaching a 50-percent line 9 cost sharing of actuarially determined normal costs for both line 10 employer and employees by July 1, 2018. line 11 (3)  The state and employees in the judicial branch shall prefund line 12 retiree health care, with the goal of reaching a 50-percent cost line 13 sharing of actuarially determined normal costs for both employer line 14 and employees by July 1, 2017. line 15 (b)  (1)  The employees in State Bargaining Unit 9 shall make line 16 contributions to prefund retiree health care based on the following line 17 schedule, and the state shall make a matching contribution: line 18 (A)  Effective July 1, 2017, 0.5 percent of pensionable line 19 compensation. line 20 (B)  Effective July 1, 2018, an additional 0.5 percent for a total line 21 employee contribution of 1.0 percent of pensionable compensation. line 22 (C)  Effective July 1, 2019, an additional 1.0 percent for a total line 23 employee contribution of 2.0 percent of pensionable compensation. line 24 (2)  The employees in State Bargaining Unit 10 shall make line 25 contributions to prefund retiree health care based on the following line 26 schedule, and the state shall make a matching contribution: line 27 (A)  Effective July 1, 2017, 0.7 percent of pensionable line 28 compensation. line 29 (B)  Effective July 1, 2018, an additional 0.7 percent for a total line 30 employee contribution of 1.4 percent of pensionable compensation. line 31 (C)  Effective July 1, 2019, an additional 1.4 percent for a total line 32 employee contribution of 2.8 percent of pensionable compensation. line 33 (3)  The employees in State Bargaining Unit 6 shall make line 34 contributions to prefund retiree health care based on the following line 35 schedule, and the state shall make a matching contribution: line 36 (A)  Effective July 1, 2016, 1.3 percent of pensionable line 37 compensation. line 38 (B)  Effective July 1, 2017, an additional 1.3 percent for a total line 39 employee contribution of 2.6 percent of pensionable compensation. 98 — 4 —SB 454 HB -95-Item 5. - 21 line 1 (C)  Effective July 1, 2018, an additional 1.4 percent for a total line 2 employee contribution of 4.0 percent of pensionable compensation. line 3 (4)  The state employees in the judicial branch shall make line 4 contributions to prefund retiree health care based on the following line 5 schedule, and the state shall make a matching contribution: line 6 (A)  Effective July 1, 2016, 1.5 percent of pensionable line 7 compensation. line 8 (B)  Effective July 1, 2017, up to an additional 1.5 percent for line 9 a total employee contribution of up to 3.0 percent of pensionable line 10 compensation. The additional amount shall be determined by the line 11 Director of Finance no later than April 1, 2017, based on the line 12 actuarially determined normal costs identified in the state valuation. line 13 (C)  This paragraph does not apply to a judge who is subject to line 14 Chapter 11 (commencing with Section 75000) or Chapter 11.5 line 15 (commencing with Section 75500) of Title 8. line 16 (5)  The employees in State Bargaining Unit 12 shall make line 17 contributions to prefund retiree health care based on the following line 18 schedule, and the state shall make a matching contribution: line 19 (A)  Effective July 1, 2017, 1.9 percent of pensionable line 20 compensation. line 21 (B)  Effective July 1, 2018, an additional 1.4 percent for a total line 22 employee contribution of 3.3 percent of pensionable compensation. line 23 (C)  Effective July 1, 2019, an additional 1.3 percent for a total line 24 employee contribution of 4.6 percent of pensionable compensation. line 25 (6)  The employees in State Bargaining Unit 2 shall make line 26 contributions to prefund retiree health care based on the following line 27 schedule, and the state shall make a matching contribution: line 28 (A)  Effective July 1, 2017, 0.7 percent of pensionable line 29 compensation. line 30 (B)  Effective July 1, 2018, an additional 0.6 percent for a total line 31 employee contribution of 1.3 percent of pensionable compensation. line 32 (C)  Effective July 1, 2019, an additional 0.7 percent for a total line 33 employee contribution of 2.0 percent of pensionable compensation. line 34 (7)  The employees in State Bargaining Unit 7 shall make line 35 contributions to prefund retiree health care based on the following line 36 schedule, and the state shall make a matching contribution: line 37 (A)  Effective July 1, 2017, 1.3 percent of pensionable line 38 compensation. line 39 (B)  Effective July 1, 2018, an additional 1.4 percent for a total line 40 employee contribution of 2.7 percent of pensionable compensation. 98 SB 454— 5 — HB -96-Item 5. - 22 line 1 (C)  Effective July 1, 2019, an additional 1.3 percent for a total line 2 employee contribution of 4.0 percent of pensionable compensation. line 3 (c)  This section only applies to employees who are eligible for line 4 health benefits, including permanent intermittent employees. line 5 (d)  Contributions paid pursuant to this section shall be deposited line 6 in the Annuitants’ Health Care Coverage Fund and shall not be line 7 refundable under any circumstances to an employee or his or her line 8 beneficiary or survivor. line 9 (e)  If the provisions of this section are in conflict with the line 10 provisions of a memorandum of understanding reached pursuant line 11 to Section 3517.5, the memorandum of understanding shall be line 12 controlling without further legislative action, except that if those line 13 provisions of a memorandum of understanding require the line 14 expenditure of funds, the provisions shall not become effective line 15 unless approved by the Legislature in the annual Budget Act. line 16 (f)  This section shall also apply to a state employee related to line 17 a bargaining unit described in subdivision (a) who is excepted line 18 from the definition of “state employee” in subdivision (c) of line 19 Section 3513. line 20 (g)  On and after January 1, 2018, the prefunding of retiree health line 21 care for state employees, annuitants, and their beneficiaries shall line 22 be the responsibility of the state pursuant to Section 22944.7. line 23 SEC. 2. Section 22874.5 is added to the Government Code, to line 24 read: line 25 22874.5. (a)  Notwithstanding Sections 22870, 22871, 22873, line 26 and 22874, a state employee, defined by subdivision (c) of Section line 27 3513, an employee of the California State University, or an line 28 employee of the Legislature, who is employed by the state for the line 29 first time, and who becomes a state member of the system on or line 30 after January 1, 2018, shall not receive any portion of the employer line 31 contribution payable for annuitants unless the person is credited line 32 with 15 years of state service at the time of retirement. line 33 (b)  The percentage of the employer contribution payable for line 34 postemployment health benefits for an employee subject to this line 35 section shall be based on the completed years of credited state line 36 service at retirement as shown in the following table: line 37 line 38 Credited Years Percentage line 39 of Employer Contribution Years of Service Contribution line 40 5015.................................................................... 98 — 6 —SB 454 HB -97-Item 5. - 23 line 1 5516.................................................................... line 2 6017.................................................................... line 3 6518.................................................................... line 4 7019.................................................................... line 5 7520.................................................................... line 6 8021.................................................................... line 7 8522.................................................................... line 8 9023.................................................................... line 9 9524.................................................................... line 10 10025 or more...................................................... line 11 line 12 (c)  This section shall apply only to state employees who retire line 13 for service. For purposes of this section, “state service” means line 14 service rendered as an employee of the state or an appointed or line 15 elected officer of the state for compensation. line 16 SEC. 3. Section 22944.5 of the Government Code is amended line 17 to read: line 18 22944.5. (a)  (1)  The state and employees in State Bargaining line 19 Unit 2, 7, 8, 9, 10, 13, 18, or 19 shall prefund retiree health care, line 20 with the goal of reaching a 50-percent cost sharing of actuarially line 21 determined normal costs for both employer and employees by July line 22 1, 2019. line 23 (2)  The state and employees in State Bargaining Unit 6 shall line 24 prefund retiree health care, with the goal of reaching a 50-percent line 25 cost sharing of actuarially determined normal costs for both line 26 employer and employees by July 1, 2018. line 27 (3)  The state and employees in the judicial branch shall prefund line 28 retiree health care, with the goal of reaching a 50-percent cost line 29 sharing of actuarially determined normal costs for both employer line 30 and employees by July 1, 2017. line 31 (4)  The state and employees in State Bargaining Unit 1, 3, 4, line 32 11, 12, 14, 15, 17, 20, or 21 shall prefund retiree health care, with line 33 the goal of reaching a 50-percent cost sharing of actuarially line 34 determined normal costs for both employer and employees by July line 35 1, 2020. line 36 (b)  (1)  The employees in State Bargaining Unit 9 shall make line 37 contributions to prefund retiree health care based on the following line 38 schedule, and the state shall make a matching contribution: line 39 (A)  Effective July 1, 2017, 0.5 percent of pensionable line 40 compensation. 98 SB 454— 7 — HB -98-Item 5. - 24 line 1 (B)  Effective July 1, 2018, an additional 0.5 percent for a total line 2 employee contribution of 1.0 percent of pensionable compensation. line 3 (C)  Effective July 1, 2019, an additional 1.0 percent for a total line 4 employee contribution of 2.0 percent of pensionable compensation. line 5 (2)  The employees in State Bargaining Unit 10 shall make line 6 contributions to prefund retiree health care based on the following line 7 schedule, and the state shall make a matching contribution: line 8 (A)  Effective July 1, 2017, 0.7 percent of pensionable line 9 compensation. line 10 (B)  Effective July 1, 2018, an additional 0.7 percent for a total line 11 employee contribution of 1.4 percent of pensionable compensation. line 12 (C)  Effective July 1, 2019, an additional 1.4 percent for a total line 13 employee contribution of 2.8 percent of pensionable compensation. line 14 (3)  The employees in State Bargaining Unit 6 shall make line 15 contributions to prefund retiree health care based on the following line 16 schedule, and the state shall make a matching contribution: line 17 (A)  Effective July 1, 2016, 1.3 percent of pensionable line 18 compensation. line 19 (B)  Effective July 1, 2017, an additional 1.3 percent for a total line 20 employee contribution of 2.6 percent of pensionable compensation. line 21 (C)  Effective July 1, 2018, an additional 1.4 percent for a total line 22 employee contribution of 4.0 percent of pensionable compensation. line 23 (4)  The state employees in the judicial branch shall make line 24 contributions to prefund retiree health care based on the following line 25 schedule, and the state shall make a matching contribution: line 26 (A)  Effective July 1, 2016, 1.5 percent of pensionable line 27 compensation. line 28 (B)  Effective July 1, 2017, up to an additional 1.5 percent for line 29 a total employee contribution of up to 3.0 percent of pensionable line 30 compensation. The additional amount shall be determined by the line 31 Director of Finance no later than April 1, 2017, based on the line 32 actuarially determined normal costs identified in the state valuation. line 33 (C)  This paragraph does not apply to a judge who is subject to line 34 Chapter 11 (commencing with Section 75000) or Chapter 11.5 line 35 (commencing with Section 75500) of Title 8. line 36 (5)  The employees in State Bargaining Unit 12 shall make line 37 contributions to prefund retiree health care based on the following line 38 schedule, and the state shall make a matching contribution: line 39 (A)  Effective July 1, 2017, 1.5 percent of pensionable line 40 compensation. 98 — 8 —SB 454 HB -99-Item 5. - 25 line 1 (B)  Effective July 1, 2018, an additional 1.0 percent for a total line 2 employee contribution of 2.5 percent of pensionable compensation. line 3 (C)  Effective July 1, 2019, an additional 1.0 percent for a total line 4 employee contribution of 3.5 percent of pensionable compensation. line 5 (D)  Effective July 1, 2020, an additional 1.1 percent for a total line 6 employee contribution of 4.6 percent of pensionable compensation. line 7 (6)  The employees in State Bargaining Unit 2 shall make line 8 contributions to prefund retiree health care based on the following line 9 schedule, and the state shall make a matching contribution: line 10 (A)  Effective July 1, 2017, 0.7 percent of pensionable line 11 compensation. line 12 (B)  Effective July 1, 2018, an additional 0.6 percent for a total line 13 employee contribution of 1.3 percent of pensionable compensation. line 14 (C)  Effective July 1, 2019, an additional 0.7 percent for a total line 15 employee contribution of 2.0 percent of pensionable compensation. line 16 (7)  The employees in State Bargaining Unit 7 shall make line 17 contributions to prefund retiree health care based on the following line 18 schedule, and the state shall make a matching contribution: line 19 (A)  Effective July 1, 2017, 1.3 percent of pensionable line 20 compensation. line 21 (B)  Effective July 1, 2018, an additional 1.4 percent for a total line 22 employee contribution of 2.7 percent of pensionable compensation. line 23 (C)  Effective July 1, 2019, an additional 1.3 percent for a total line 24 employee contribution of 4.0 percent of pensionable compensation. line 25 (8)  The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, line 26 17, 20, or 21 shall make contributions to prefund retiree health line 27 care based on the following schedule, and the state shall make a line 28 matching contribution: line 29 (A)  Effective July 1, 2018, 1.2 percent of pensionable line 30 compensation. line 31 (B)  Effective July 1, 2019, an additional 1.1 percent for a total line 32 employee contribution of 2.3 percent of pensionable compensation. line 33 (C)  Effective July 1, 2020, an additional 1.2 percent for a total line 34 employee contribution of 3.5 percent of pensionable compensation. line 35 (9)  The employees in State Bargaining Unit 8 shall make line 36 contributions to prefund retiree health care based on the following line 37 schedule, and the state shall make a matching contribution: line 38 (A)  Effective July 1, 2017, 1.5 percent of pensionable line 39 compensation. 98 SB 454— 9 — HB -100-Item 5. - 26 line 1 (B)  Effective July 1, 2018, an additional 1.5 percent for a total line 2 employee contribution of 3.0 percent of pensionable compensation. line 3 (C)  Effective July 1, 2019, an additional 1.4 percent for a total line 4 employee contribution of 4.4 percent of pensionable compensation. line 5 (10)  The employees in State Bargaining Unit 13 shall make line 6 contributions to prefund retiree health care based on the following line 7 schedule, and the state shall make a matching contribution: line 8 (A)  Effective July 1, 2017, 1.3 percent of pensionable line 9 compensation. line 10 (B)  Effective July 1, 2018, an additional 1.3 percent for a total line 11 employee contribution of 2.6 percent of pensionable compensation. line 12 (C)  Effective July 1, 2019, an additional 1.3 percent for a total line 13 employee contribution of 3.9 percent of pensionable compensation. line 14 (11)  The employees in State Bargaining Unit 18 shall make line 15 contributions to prefund retiree health care based on the following line 16 schedule, and the state shall make a matching contribution: line 17 (A)  Effective July 1, 2017, 1.3 percent of pensionable line 18 compensation. line 19 (B)  Effective July 1, 2018, an additional 1.3 percent for a total line 20 employee contribution of 2.6 percent of pensionable compensation. line 21 (C)  Effective July 1, 2019, an additional 1.4 percent for a total line 22 employee contribution of 4.0 percent of pensionable compensation. line 23 (12)  The employees in State Bargaining Unit 19 shall make line 24 contributions to prefund retiree health care based on the following line 25 schedule, and the state shall make a matching contribution: line 26 (A)  Effective July 1, 2017, 1.0 percent of pensionable line 27 compensation. line 28 (B)  Effective July 1, 2018, an additional 1.0 percent for a total line 29 employee contribution of 2.0 percent of pensionable compensation. line 30 (C)  Effective July 1, 2019, an additional 1.0 percent for a total line 31 employee contribution of 3.0 percent of pensionable compensation. line 32 (c)  This section only applies to employees who are eligible for line 33 health benefits, including permanent intermittent employees. line 34 (d)  Contributions paid pursuant to this section shall be deposited line 35 in the Annuitants’ Health Care Coverage Fund and shall not be line 36 refundable under any circumstances to an employee or his or her line 37 beneficiary or survivor. line 38 (e)  If the provisions of this section are in conflict with the line 39 provisions of a memorandum of understanding reached pursuant line 40 to Section 3517.5, the memorandum of understanding shall be 98 — 10 —SB 454 HB -101-Item 5. - 27 line 1 controlling without further legislative action, except that if those line 2 provisions of a memorandum of understanding require the line 3 expenditure of funds, the provisions shall not become effective line 4 unless approved by the Legislature in the annual Budget Act. line 5 (f)  This section shall also apply to a state employee related to line 6 a bargaining unit described in subdivision (a) who is excepted line 7 from the definition of “state employee” in subdivision (c) of line 8 Section 3513. line 9 (g)  On and after January 1, 2018, the prefunding of retiree line 10 health care for state employees, annuitants, and their beneficiaries line 11 shall be the responsibility of the state pursuant to Section 22944.7. line 12 SEC. 3. line 13 SEC. 4. Section 22944.7 is added to the Government Code, to line 14 read: line 15 22944.7. (a)  Notwithstanding Section 22944.5 or any other line 16 law, on and after January 1, 2018, the state shall assume all line 17 responsibility for prefunding retiree health care. line 18 (b)  The state shall prefund retiree health care for state line 19 employees, annuitants, and their beneficiaries with the goal of line 20 paying 100 percent of the actuarially determined normal costs by line 21 July 1, 2019. line 22 (c)  The state shall pay unfunded liabilities that have accrued for line 23 retiree health care for state employees, annuitants, and their line 24 beneficiaries, as reported by the Controller in subdivision (d) with line 25 the goal of paying 50 percent of the actuarially determined cost of line 26 these liabilities by January 1, 2022, and 100 percent of the line 27 actuarially determined cost of these liabilities by January 1, 2026. line 28 (d)  (1)  On or before January 10 each year, the Controller shall line 29 provide to the Assembly Committee on Budget and the Senate line 30 Committee on Budget and Fiscal Review a report that shows, for line 31 that year, the actuarially determined normal cost and the unfunded line 32 liability of retiree health care for state employees, annuitants, and line 33 their beneficiaries and a calculation of the amounts necessary to line 34 meet the goals described in subdivisions (b) and (c). line 35 (2)  The report provided pursuant to this subdivision shall be line 36 submitted in compliance with Section 9795. O 98 SB 454— 11 — HB -102-Item 5. - 28 FACT SHEET Senate Constitutional Amendment 10 – Public Pension Transparency BILL SUMMARY Senate Constitutional Amendment (SCA) 10 will prohibit public employers from increasing retirement benefits for their employees without two-thirds voter approval. ISSUE BACKGROUND Growing unfunded public pension obligations will have serious ramifications for future generations unless changes are made to California’s public employee retirement systems. California has more unfunded liabilities than any other state.1 Recent reforms were a great start to addressing California’s pension crisis; but substantial changes are still needed. Additionally, taxpayers who bear a significant cost of public employee pensions should have a voice if those costs are increased. It is certainly in the interest of all Californians to encourage pensions that provide reasonable retirement benefits for our public workers. It is also very important to provide a fair, workable plan to pay down the accumulated pension debt as quickly as possible – and to reduce future obligations. By requiring two-thirds voter approval for increased retirement benefits the legislature would be taking a very important step toward fiscal responsibility. THIS BILL Unions negotiate with elected officials for increased retirement benefits and pay raises. This bill requires 1 https://www.alec.org/app/uploads/2016/10/2016-10-13- Unaccountable-and-Unaffordable.pdf (page 8) that any increase to pension benefits must also be passed with a two-thirds voter approval from the electorate of the applicable jurisdiction. This constitutional amendment does not prohibit public employees from receiving additional retirement benefits. SCA 10 simply requires approval from the very taxpayers who are going to be responsible for paying the generous public employee retirement benefits such as increased retirement formula, cost-of-living adjustments, and reduced retirement age. RELATED LEGISLATION · Measure J, Orange County. Passed in 2008 with over 75% voter approval. · Measure B, San Jose. Passed in 2012 with nearly 70% voter approval. · Proposition B, San Diego. Passed in 2012 with over 65% voter approval. · California Public Employees' Pension Reform Act of 2013. · California Public Vote on Pensions Initiative (2016). Proposed constitutional amendment, failed to make 11/8/2016 ballot. SUPPORT · None on file CO-AUTHORS · None on file CONTACT Eric Dietz, Policy Consultant eric.dietz@sen.ca.gov, (916) 651-4037 HB -103-Item 5. - 29 FACT SHEET Senate Constitutional Amendment 1 – No Secure Choice Bailout BILL SUMMARY Senate Constitutional Amendment 1 would prohibit California taxpayer funds from being used to fund the newly created California Secure Choice Retirement Savings Program (SB 1234, 2016), aside from initial startup costs for the program, as anticipated in the statute. This measure will neither prevent nor prohibit the Secure Choice program from being established or operating. This measure merely ensures that California taxpayers do not cover the costs and/or unfunded liabilities for a state-run retirement system for private-sector employees. Proponents of this program claimed that no state money would be used to fund Secure Choice. Because statute can be changed with a simple piece of legislation, this measure has been introduced as a constitutional amendment to ensure that promise is kept and no extra financial burden is passed along to California taxpayers. ISSUE BACKGROUND Senate Bill 1234 (De Leon, Chapter 804, statutes of 2016) created the Secure Choice Retirement Savings Program, a defined contribution, individual retirement account (IRA) that mandates private employees participate through payroll deduction into a retirement savings account managed by the state. The program requires employees to contribute up to 8% of their salary into their newly established personal retirement plan. SUPPORT · None on file OPPOSITION · None on file CONTACT Eric Dietz, Policy Consultant eric.dietz@sen.ca.gov, (916) 651-4037 HB -104-Item 5. - 30 FACT SHEET Senate Constitutional Amendment 8 –“California Rule” SUMMARY Senate Constitutional Amendment 8 gives the legislature and public pension systems the ability to adjust public employees’ retirement benefit formulas on a prospective basis.1 BACKGROUND The “California Rule” was created by judicial fiat when the California Supreme Court issued an opinion in 1955 on Allen v. City of Long Beach. The Court ruled that future pension benefits can be changed, but only if a comparable or better benefit is offered. This means public employees’ benefits become a vested right at the moment of hire. Essentially benefits can only ratchet up and never be decreased in the public sector. Since then, in order to provide a sustainable pension system, municipalities have attempted to change vested employee benefits but have been unsuccessful – until last year when the California 1st District Court of Appeal ruled in the Marin Association of Public Employees v. Marin County Employees' Retirement Association case (“Marin Decision”). In a truly forward-thinking decision, the Court found that public retirement benefits can be reduced. This decision was appealed by the Marin Association of Public Employees and ultimately granted review by the California Supreme Court. The high court has not yet scheduled a hearing date. THIS BILL California needs to clarify the state’s constitution and provide tools to strengthen its fiscal integrity. SCA 8 gives pension systems the ability to change benefits going forward. It does not eliminate pension benefits already earned by a public employee. The employee is entitled to every benefit accrued to the point of the change. Allowing 1 Marin Assn. of Public Employees v. Marin County Employees' Retirement Assn., 2 Cal. App. 5th 674 pension plans to reasonably reduce future benefits will help keep plans sustainable and keep local governments solvent. California's public pension systems currently have over $202 billion in unfunded liabilities.2 The California Public Employees' Retirement System (CalPERS), the nation’s largest public pension fund, has not reached its assumed rate of return for several years.3 For the 2015-16 fiscal year, CalPERS planned for a 7.5% rate of return, but only managed to achieve 0.6%.4 This shortfall equals nearly $28 billion in liability – equal to almost 20% of Governor Brown’s general fund budget. CalPERS has fallen nearly $50 billion short in the last two years on its investment returns; California has an unfunded liability of $77 billion for retiree medical healthcare, and the recently released state budget shows that we have a $1.6 billion deficit.5 6 Therefore, it is more important than ever for us to find a way to minimize the state’s massive pension obligations. SCA 8 gives us that ability. SUPPORT · None on file OPPOSITION · None on File CONTACT Eric Dietz, Policy Consultant eric.dietz@sen.ca.gov, (916) 651-4037 2 CalPERS 2015-16 CARF, CalSTRS 2016 CARF, UC Retirement Plan Actuarial Valuation Report 2014 3 CalPERS 2015-16 CARF 4 CalPERS 2015-16 CARF 5 http://www.ocregister.com/articles/announced-737337- office-billion.html 6 http://www.sco.ca.gov/Content- Images/ARD/AV_Report_June_30_2016.pdf HB -105-Item 5. - 31 I 115TH CONGRESS 1ST SESSION H. R. 472 To amend the Fair Housing Act to better protect persons with disabilities and communities. IN THE HOUSE OF REPRESENTATIVES JANUARY 12, 2017 Mr. ISSA (for himself, Mr. MOULTON, Mrs. MIMI WALTERS of California, Mr. CALVERT, Mr. HUNTER, Mr. ROYCE of California, and Mr. ROHR- ABACHER) introduced the following bill; which was referred to the Com- mittee on the Judiciary A BILL To amend the Fair Housing Act to better protect persons with disabilities and communities. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Safe Recovery and 4 Community Empowerment Act’’. 5 VerDate Sep 11 2014 23:04 Jan 25, 2017 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H472.IH H472asabaliauskas on DSK3SPTVN1PROD with BILLSHB -106-Item 5. - 32 2 •HR 472 IH SEC. 2. ZONING AND LICENSING OF RESIDENTIAL RECOV-1 ERY FACILITIES. 2 The Fair Housing Act (42 U.S.C. 3601 et seq.) is 3 amended by inserting after section 807 (42 U.S.C. 3607) 4 the following: 5 ‘‘SEC. 807A. Nothing in this title, or other Federal 6 law, relating to protections for persons with disabilities, 7 prohibits any local, State, or Federal government body 8 from— 9 ‘‘(1) requiring by law, regulation, or ordinance 10 a reasonable minimum distance between residential 11 recovery facilities within a particular area zoned for 12 residential housing, provided that the limitation— 13 ‘‘(A) is necessary to preserve the residen-14 tial character of the zoned area; and 15 ‘‘(B) allows for some residential recovery 16 facilities to be located within the zoned area; 17 and 18 ‘‘(2) requiring that a residential recovery facil-19 ity and its owner or operator— 20 ‘‘(A) obtain an operating license or use 21 permit; or 22 ‘‘(B) satisfy a set of consumer protection 23 standards, which may include a maximum ca-24 pacity requirement.’’. 25 VerDate Sep 11 2014 23:04 Jan 25, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H472.IH H472asabaliauskas on DSK3SPTVN1PROD with BILLSHB -107-Item 5. - 33 3 •HR 472 IH SEC. 3. RESIDENTIAL RECOVERY FACILITY RESIDENTS’ 1 BILL OF RIGHTS. 2 Residential recovery facilities receiving direct or indi-3 rect payments or reimbursements or other remunerations 4 from Medicare, Medicaid, or any other Federal healthcare 5 program, or via private insurance purchased on a Federal 6 exchange or subsidized by the Federal Government, for ei-7 ther housing, recovery services, or testing or monitoring 8 for drugs or alcohol, shall ensure the following: 9 (1) Each residential recovery facility resident 10 residing in the home or receiving addiction treat-11 ment services be provided a safe living environment 12 completely free from illicit drugs, alcohol, firearms, 13 harassment, abuse, or harm. 14 (2) Residential recovery facility residents live in 15 a licensed, or registered residence that has com-16 mitted to following standards approved by States 17 and localities, if such standards are in place. 18 SEC. 4. DEFINITIONS. 19 Section 802 of the Fair Housing Act (42 U.S.C. 20 3602) is amended by adding to the end the following: 21 ‘‘(p) ‘Current, illegal use of a controlled substance’ 22 means the discrete, occasional, frequent, or ongoing illegal 23 use of a controlled substance at the present time or in 24 the reasonably recent past. 25 VerDate Sep 11 2014 23:04 Jan 25, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H472.IH H472asabaliauskas on DSK3SPTVN1PROD with BILLSHB -108-Item 5. - 34 4 •HR 472 IH ‘‘(q) ‘Residential recovery facility’ means a residence 1 that provides housing to individuals in recovery from drug 2 or alcohol addiction with the promise of providing a clean 3 and sober environment in return for direct or indirect pay-4 ment to an owner, operator, or compensated staff person, 5 including payment to a third party, a portion of which is 6 then provided to the residential recovery facility owner or 7 operator for their services.’’. 8 Æ VerDate Sep 11 2014 23:04 Jan 25, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H472.IH H472asabaliauskas on DSK3SPTVN1PROD with BILLSHB -109-Item 5. - 35 AMENDED IN ASSEMBLY MARCH 9, 2017 california legislature—2017–18 regular session ASSEMBLY BILL No. 1129 Introduced by Assembly Member Mark Stone February 17, 2017 An act to amend Section 30301 Sections 30235, 30624, and 30821 of the Public Resources Code, relating to coastal resources. legislative counsel’s digest AB 1129, as amended, Mark Stone. California Coastal Commission. Coastal resources: structures: beach access and protection. Existing law, the California Coastal Act of 1976, provides for planning and regulation of development in the coastal zone, as defined. The act specifies planning and management policies for the location of new residential, commercial, and industrial development in the coastal zone. The act requires the permitting of revetments, breakwaters, groins, harbor channels, seawalls, cliff retaining walls, and other such construction that alters natural shoreline processes when required to serve coastal-dependent uses or to protect existing structures or public beaches in danger from erosion and when designed to eliminate or mitigate adverse impacts on local shoreline sand supply. This bill would also require that the permitted construction of those structures be consistent with the policies of the act, including policies regarding protection of public access, shoreline ecology, natural landforms, and other impacts on coastal resources, and would define the term “existing structure” for the purposes of those provisions. The act requires any person wishing to perform or undertake any development in the coastal zone, as defined, to obtain a coastal development permit, but exempts from those requirements specified 98 HB -110-Item 5. - 36 emergency projects undertaken, carried out, or approved by a public agency, as prescribed. This bill would specify that any emergency permit issued under those provisions is a temporary authorization intended to allow the minimum amount of temporary development necessary to address the identified emergency, and minimize any potential harm or adverse coastal impacts related to addressing the emergency. The bill would specify that any subsequent development that is carried out that is beyond the scope of the emergency permit shall require a coastal development permit and is not subject to emergency authorization granted under those provisions. The act imposes specified civil penalties on a person, including a landowner, who is in violation of the public access provisions of the act for each violation of the act. This bill would additionally impose those civil penalties on a person, including a landowner, who has an unpermitted shoreline protection structure on his or her property located in the coastal zone. The California Coastal Act of 1976 establishes the California Coastal Commission and prescribes the membership and functions and duties of the commission with regard to the administration and implementation of the act. This bill would make nonsubstantive changes in those provisions prescribing the membership of the commission. Vote: majority. Appropriation: no. Fiscal committee: no yes. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. (a)  The Legislature finds and declares all of the line 2 following: line 3 (1)  California beaches provide recreation opportunities for line 4 residents across the state, as well as visitors from around the line 5 world. line 6 (2)  The coastal economy is based upon the maintenance of line 7 precious natural areas, beaches, parks, and urban areas as tourist line 8 destinations, and their economic benefit to the state depends on line 9 protection of their scenic and recreational value. line 10 (3)  As climate change occurs, much of the coast is under threat line 11 due to sea level rise and amplified coastal erosion. 98 — 2 —AB 1129 HB -111-Item 5. - 37 line 1 (4)  The economic and environmental health of human and line 2 natural coastal communities depends on their resilience and their line 3 ability to survive and rebound from adverse effects. line 4 (5)  In response to erosion and storm events, Californians have line 5 built seawalls, revetments, and other armoring structures along line 6 more than 10 percent of California’s coast. line 7 (6)  Coastal armoring structures placed on eroding beaches line 8 prevent coastal ecosystems from migrating inland and cut off sand line 9 supply by preventing natural erosion processes. The placement of line 10 these structures on coastal lands also causes beaches to narrow line 11 and eventually disappear, diminishing coastal habitat. line 12 (7)  Coastal armoring limits beach access, impedes coastal line 13 recreation, and causes increased erosion to neighboring properties. line 14 (8)  A variety of alternatives to coastal armoring exist that use line 15 natural features and processes to protect property. While these line 16 nature-based alternatives have been shown to cost less or about line 17 the same as armoring, they also have the additional benefit of line 18 restoring and enhancing the natural character of the coast and line 19 ensuring coastal beach access for the public. line 20 (b)  It is therefore the intent of the Legislature to provide clear line 21 direction and enhanced authority to the California Coastal line 22 Commission to maximize the use of natural infrastructure to protect line 23 the state’s coastline, while minimizing the use of coastal armoring line 24 and its related negative impacts. line 25 SEC. 2. Section 30235 of the Public Resources Code is line 26 amended to read: line 27 30235. (a)  Revetments, breakwaters, groins, harbor channels, line 28 seawalls, cliff retaining walls, and other such construction that line 29 alters natural shoreline processes shall be permitted when required line 30 to serve coastal-dependent uses or to protect an existing structures line 31 or public beaches structure or public beach in danger from erosion line 32 and when that construction is (1) designed to eliminate or mitigate line 33 adverse impacts on local shoreline sand supply. supply, and (2) line 34 consistent with the policies of this division, including policies line 35 pertaining to protection of public access, shoreline ecology, natural line 36 landforms, and other impacts on coastal resources. Existing marine line 37 structures causing water stagnation contributing to pollution line 38 problems and fishkills should be phased out or upgraded where line 39 feasible. 98 AB 1129— 3 — HB -112-Item 5. - 38 line 1 (b)  For purposes of this section, and consistent with existing line 2 practice, “existing structure” means a structure that is legally line 3 authorized and in existence as of January 1, 1977. line 4 SEC. 3. Section 30624 of the Public Resources Code is line 5 amended to read: line 6 30624. (a)  The commission shall provide, by regulation, for line 7 the issuance of coastal development permits by the executive line 8 director of the commission or, where the coastal development line 9 permit authority has been delegated to a local government pursuant line 10 to Section 30600.5, by an appropriate local official designated by line 11 resolution of the local government without compliance with the line 12 procedures specified in this chapter in cases of emergency, other line 13 than an emergency provided for under Section 30611, and for the line 14 following nonemergency developments: improvements to any line 15 existing structure; any single-family dwelling; any development line 16 of four dwelling units or less within any incorporated area that line 17 does not require demolition; any other developments not in excess line 18 of one hundred thousand dollars ($100,000) other than any division line 19 of land; and any development specifically authorized as a principal line 20 permitted use and proposed in an area for which the land use line 21 portion of the applicable local coastal program has been certified. line 22 Such That permit for nonemergency development shall not be line 23 effective until after reasonable public notice and adequate time for line 24 the review of such the issuance has been provided. line 25 (b)  If one-third of the appointed members of the commission line 26 so request at the first meeting following the issuance of such that line 27 permit by the executive director, that issuance shall not be effective, line 28 and, instead, the application shall be processed in accordance with line 29 the commission’s procedures for permits and pursuant to the line 30 provisions of this chapter. line 31 (c)  Any permit issued by a local official pursuant to the line 32 provisions of this section shall be scheduled on the agenda of the line 33 governing body of the local agency at its first scheduled meeting line 34 after that permit has been issued. If, at that meeting, one-third of line 35 the members of that governing body so request, the permit issued line 36 by the local official shall not go into effect and the application for line 37 a coastal development permit shall be processed by the local line 38 government pursuant to Section 30600.5. line 39 (d)  No monetary limitations shall be required for emergencies line 40 covered by the provisions of this section. 98 — 4 —AB 1129 HB -113-Item 5. - 39 line 1 (e)  (1)  An emergency permit issued under this section is a line 2 temporary authorization intended to allow the minimum amount line 3 of temporary development necessary to address the identified line 4 emergency, and minimize any potential harm or adverse coastal line 5 impacts related to addressing the emergency. Any subsequent line 6 development that is carried out that is beyond the scope of the line 7 emergency permit shall require a coastal development permit and line 8 is not subject to the emergency authorization granted under this line 9 section. Any development in the coastal zone that is covered under line 10 an emergency authorization granted pursuant to this section shall line 11 be removed at the end of the term of the permit unless authorized line 12 by a subsequent coastal development permit or a determination line 13 that no permit is needed, and any area affected by the development line 14 shall be restored to its prior condition. line 15 (2)  Any violation of paragraph (1) shall constitute a knowing line 16 and intentional violation of this division, subject to any penalties line 17 provided in Article 2 (commencing with Section 30820) of Chapter line 18 9. line 19 SEC. 4. Section 30821 of the Public Resources Code is line 20 amended to read: line 21 30821. (a)  In addition to any other penalties imposed pursuant line 22 to this division, a person, including a landowner, who is in violation line 23 of the public access provisions of this division division, or who line 24 has an unpermitted shoreline protection structure, such as a line 25 seawall, revetment, retaining wall, or other like structure, on his line 26 or her property located in the coastal zone, is subject to an line 27 administrative civil penalty that may be imposed by the line 28 commission in an amount not to exceed 75 percent of the amount line 29 of the maximum penalty authorized pursuant to subdivision (b) of line 30 Section 30820 for each violation. The administrative civil penalty line 31 may be assessed for each day the violation persists, but for no more line 32 than five years. line 33 (b)  All penalties imposed pursuant to subdivision (a) shall be line 34 imposed by majority vote of the commissioners present in a duly line 35 noticed public hearing in compliance with the requirements of line 36 Section 30810, 30811, or 30812. line 37 (c)  In determining the amount of civil liability, the commission line 38 shall take into account the factors set forth in subdivision (c) of line 39 Section 30820. 98 AB 1129— 5 — HB -114-Item 5. - 40 line 1 (d)  A person shall not be subject to both monetary civil liability line 2 imposed under this section and monetary civil liability imposed line 3 by the superior court for the same act or failure to act. If a person line 4 who is assessed a penalty under this section fails to pay the line 5 administrative penalty, otherwise fails to comply with a restoration line 6 or cease and desist order issued by the commission in connection line 7 with the penalty action, or challenges any of these actions by the line 8 commission in a court of law, the commission may maintain an line 9 action or otherwise engage in judicial proceedings to enforce those line 10 requirements and the court may grant any relief as provided under line 11 this chapter. line 12 (e)  If a person fails to pay a penalty imposed by the commission line 13 pursuant to this section, the commission may record a lien on the line 14 property in the amount of the penalty assessed by the commission. line 15 This lien shall have the force, effect, and priority of a judgment line 16 lien. line 17 (f)  In enacting this section, it is the intent of the Legislature to line 18 ensure that unintentional, minor violations of this division that line 19 only cause de minimis harm will not lead to the imposition of line 20 administrative penalties if the violator has acted expeditiously to line 21 correct the violation. line 22 (g)  “Person,” for the purpose of this section, does not include line 23 a local government, a special district, or an agency thereof, when line 24 acting in a legislative or adjudicative capacity. line 25 (h)  Administrative penalties pursuant to subdivision (a) shall line 26 not be assessed if the property owner corrects the violation line 27 consistent with this division within 30 days of receiving written line 28 notification from the commission regarding the violation, and if line 29 the alleged violator can correct the violation without undertaking line 30 additional development that requires a permit under this division. line 31 This 30-day timeframe for corrective action does not apply to line 32 previous violations of permit conditions incurred by a property line 33 owner. line 34 (i)  The commission shall prepare and submit, pursuant to Section line 35 9795 of the Government Code, a report to the Legislature by line 36 January 15, 2019, that includes all of the following: line 37 (1)  The number of new violations reported annually to the line 38 commission from January 1, 2015, to December 31, 2018, line 39 inclusive. 98 — 6 —AB 1129 HB -115-Item 5. - 41 line 1 (2)  The number of violations resolved from January 1, 2015, to line 2 December 31, 2018, inclusive. line 3 (3)  The number of administrative penalties issued pursuant to line 4 this section, the dollar amount of the penalties, and a description line 5 of the violations from January 1, 2015, to December 31, 2018, line 6 inclusive. line 7 (j)  Revenues derived pursuant to this section shall be deposited line 8 into the Violation Remediation Account of the Coastal line 9 Conservancy Fund and expended pursuant to Section 30823. line 10 SECTION 1. Section 30301 of the Public Resources Code is line 11 amended to read: line 12 30301. The commission shall consist of the following 15 line 13 members: line 14 (a)  The Secretary of the Natural Resources Agency. line 15 (b)  The Secretary of Transportation. line 16 (c)  The Chairperson of the State Lands Commission. line 17 (d)  Six representatives of the public from the state at large. The line 18 Governor, the Senate Committee on Rules, and the Speaker of the line 19 Assembly shall each appoint two of these members. line 20 (e)  Six representatives selected from six coastal regions. The line 21 Governor shall select one member who is from the north coast line 22 region and one member who is from the south central coast region. line 23 The Speaker of the Assembly shall select one member who is from line 24 the central coast region and one member who is from the San Diego line 25 coast region. The Senate Committee on Rules shall select one line 26 member who is from the north central coast region and one member line 27 who is from the south coast region. For purposes of this division, line 28 these regions are defined as follows: line 29 (1)  The north coast region consists of the Counties of Del Norte, line 30 Humboldt, and Mendocino. line 31 (2)  The north central coast region consists of the Counties of line 32 Sonoma and Marin and the City and County of San Francisco. line 33 (3)  The central coast region consists of the Counties of San line 34 Mateo, Santa Cruz, and Monterey. line 35 (4)  The south central coast region consists of the Counties of line 36 San Luis Obispo, Santa Barbara, and Ventura. line 37 (5)  The south coast region consists of the Counties of Los line 38 Angeles and Orange. line 39 (6)  The San Diego coast region consists of the County of San line 40 Diego. 98 AB 1129— 7 — HB -116-Item 5. - 42 line 1 (f)  Of the representatives appointed by the Governor pursuant line 2 to subdivision (d) or (e), one of the representatives shall reside in, line 3 and work directly with, communities in the state that are line 4 disproportionately burdened by, and vulnerable to, high levels of line 5 pollution and issues of environmental justice, including, but not line 6 limited to, communities with diverse racial and ethnic populations line 7 and communities with low-income populations. The Governor line 8 shall appoint a representative qualified pursuant to this subdivision line 9 to a vacant position from the appointments available pursuant to line 10 either subdivision (d) or (e) no later than the fourth appointment line 11 available after January 1, 2017. O 98 — 8 —AB 1129 HB -117-Item 5. - 43 SUMMARY OF PROPOSED BILL: This bill would allow an art gallery to provide wine and beer to patrons, for consumption on the gallery premises, without a license or permit, as long as the price of alcohol is not included in the sales price of any piece of art or merchandise sold by the gallery. PROBLEM & NEED FOR BILL: Background: The art season in Laguna Beach flourishes year round with First Thursdays Art Walk (FTAW). This educational monthly art event, held on the first Thursday of every month from 6 – 9pm, celebrates the diverse cultural art scene of Laguna Beach and is free to the public. This non-profit organization is committed to supporting the member galleries; serving the community by cultivating an appreciation for the arts; and providing a high quality educational experience for art students through the annual Mentoring Program with Laguna College of Art + Design. During the art walk coffee, tea, water, wine and beer are served for the enjoyment of the art. Problems: Currently, according to Alcohol Beverage Control (ABC), art galleries are not allowed to serve alcoholic beverages without a one-day liquor license that has been approved by the Laguna Beach Police Department in conjunction with a Temporary Use Permit (TUP) from the City of Laguna Beach. In order for the art galleries to obtain a TUP, they have to be a member of FTAW or have another Non-Profit represent them as a gallery (meaning, a gallery has no authority to receive a TUP fora gallery opening or for any event and have to have a Non-Profit act as an umbrella to apply for the TUP). Because the galleries need a TUP every time they want to serve beer or wine, it would require them to apply for a TUP for the 300 plus days that they are open. This is over burdensome as a gallery cannot predict when an individual would like to visit a gallery and enjoy a glass of wine to either celebrate a purchase or just to enjoy the art over a beverage with the artists and fans of the art. Recent Reform: Currently, ABC provides that no license or permit is required for the serving of alcoholic beverages in a limousine, hot air balloon, seasonal business, or at beauty salons and barber shops. All of which can serve to clients aged 21 and over, provided there is no extra fee charged for the beverage. Need for legislation: Galleries throughout California offer complementary alcoholic beverages to their customers at no charge. However, by providing such beverages without an ABC license, these establishments are in conflict with state and local alcohol licensing requirements. AB 629 is needed because most art galleries are small, mom and pop operations which seek to provide an enjoyable experience for their customers; unfortunately, such businesses currently serving alcoholic beverages face potential sanctions for their actions. For More Information Contact: Madeleine Cooper Phone: (916) 319-2074 Email: Madeleine.Cooper@asm.ca.gov AB 629 ASSEMBLYMAN MATTHEW HARPER Art Galleries HB -118-Item 5. - 44 AMENDED IN ASSEMBLY FEBRUARY 28, 2017 california legislature—2017–18 regular session ASSEMBLY BILL No. 252 Introduced by Assembly Member Ridley-Thomas (Coauthors: Assembly Members Baker, Bigelow, Mathis, Steinorth, Waldron, Chávez, and Low) (Coauthors: Senators Berryhill, Hill, and Bradford) January 31, 2017 An act to add and repeal Section 7284.8 of the Revenue and Taxation Code, relating to taxation. legislative counsel’s digest AB 252, as amended, Ridley-Thomas. Local government: taxation: prohibition: video streaming services. Existing law authorizes counties, cities, and other local agencies to impose various taxes and fees in connection with activity or property within those jurisdictions. The California Constitution also authorizes a charter city to levy local taxes to raise revenues for local purposes, subject to restrictions imposed by that city’s charter or preemption in matters of statewide concern. This bill, until January 1, 2023, would prohibit the imposition by a city, city and county, or county, including a chartered city, city and county, or county, of a tax on video streaming services, including, but not limited to, any tax on the sale or use of video streaming services or any utility user taxes. tax on video streaming services. This bill would make a legislative finding and declaration regarding the statewide concern of the promotion of uniformity in access throughout the state to video streaming services. Revised 3-14-17—See last page.98 HB -119-Item 5. - 45 Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 7284.8 is added to the Revenue and line 2 Taxation Code, to read: line 3 7284.8. (a)  A city, city and county, or county, including a line 4 chartered city, city and county, or county, shall not impose any line 5 tax on video streaming services, including, but not limited to, any line 6 tax on the sale or use of video streaming services or any utility line 7 user taxes. tax on video streaming services. line 8 (b)  For purposes of this section, “video streaming service” means line 9 the provision of on-demand video content sent in compressed form line 10 over the Internet and displayed by the viewer in real time for a fee line 11 on a subscription basis. line 12 (c)  The Legislature finds and declares that the promotion of line 13 uniformity in access throughout the state to video streaming line 14 services is a matter of statewide concern and, therefore, is not a line 15 municipal affair as that term is used in Section 5 of Article XI of line 16 the California Constitution. line 17 (d)  This section shall become inoperative on January 1, 2023, line 18 and shall be repealed as of that date. line 19 line 20 REVISIONS: line 21 Heading—Line 4. line 22 line 23 O 98 — 2 —AB 252 HB -120-Item 5. - 46 AMENDED IN ASSEMBLY APRIL 25, 2017 AMENDED IN ASSEMBLY APRIL 17, 2017 AMENDED IN ASSEMBLY APRIL 4, 2017 california legislature—2017–18 regular session ASSEMBLY BILL No. 1250 Introduced by Assembly Member Jones-Sawyer February 17, 2017 An act to add Sections 31000.10, 31000.11, 37103.1, and 37103.2 to the Government Code, relating to local government. legislative counsel’s digest AB 1250, as amended, Jones-Sawyer. Counties and cities: contracts for personal services. Existing law authorizes the board of supervisors of a county to contract for special services on behalf of various public entities with persons who are specially trained, experienced, expert, and competent to perform the special services, as prescribed. These services include financial, economic, accounting, engineering, legal, and other specified services. Existing law also authorizes legislative bodies of cities to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters. This bill would establish specific standards for the use of personal services contracts by counties and cities. Beginning January 1, 2018, the bill would allow a county or county agency, or a city or city agency, to contract for personal services currently or customarily performed by county employees, as applicable, when specified conditions are met. Among other things, the bill would require the county or city to clearly 96 HB -121-Item 5. - 47 demonstrate that the proposed contract will result in actual overall costs savings to the county or city and also to show that the contract does not cause the displacement of county or city workers. The bill would require a contract entered into under these provisions to specify that it may be terminated upon material breach, if notice is provided, as specified. Additionally, the bill would require the county or city to provide an orientation to employees of the contractor who would perform services pursuant to the contract, and would establish liability provisions for employment law violations and torts committed in the course of providing services under contract, among other conditions. The bill would require that the county or city conduct a cost-benefit analysis prior to entering into the contract and would require the prospective contractors to reimburse the cost of the analysis. The bill would also require the county or city to conduct an audit of the contract to determine whether cost savings have been realized and would require the contractor to reimburse the cost of the audit. The bill would impose additional disclosure requirements for contracts exceeding $100,000 $5,000,000 annually, would exempt certain types of contracts from its provisions, and would require each county or city to maintain on its Internet Web site a searchable database of all of its contracts exceeding $100,000. $5,000,000. By placing new duties on local government agencies, the bill would impose a state-mandated local program. The bill also would provide that its provisions are severable. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: line 1 SECTION 1. Section 31000.10 is added to the Government line 2 Code, to read: line 3 31000.10. The purpose of this section and Section 31000.11 line 4 is to establish standards for the use of personal services contracts line 5 by counties. 96 — 2 —AB 1250 HB -122-Item 5. - 48 line 1 (a)  If otherwise permitted by law, a county or county agency line 2 may contract for personal services currently or customarily line 3 performed by county employees when all the following conditions line 4 are met: line 5 (1)  The board of supervisors or county agency clearly line 6 demonstrates that the proposed contract will result in actual overall line 7 cost savings to the county for the duration of the entire contract line 8 as compared with the county’s actual costs of providing the same line 9 services, provided that: line 10 (A)  In comparing costs, there shall be included the county’s line 11 additional cost of providing the same service as proposed by a line 12 contractor. These additional costs shall include the salaries and line 13 benefits of additional staff that would be needed and the cost of line 14 additional space, equipment, and materials needed to perform the line 15 function. line 16 (B)  In comparing costs, there shall not be included the county’s line 17 indirect overhead costs unless these costs can be attributed solely line 18 to the function in question and would not exist if that function was line 19 not performed in county service. Indirect overhead costs shall line 20 mean the pro rata share of existing administrative salaries and line 21 benefits, rent, equipment costs, utilities, and materials. line 22 (C)  In comparing costs, there shall be included in the cost of a line 23 contractor providing a service any continuing county costs that line 24 would be directly associated with the contracted function. These line 25 continuing county costs shall include, but not be limited to, those line 26 for inspection, supervision, and monitoring. line 27 (2)  Proposals to contract out work shall not be approved solely line 28 on the basis that savings will result from lower contractor pay rates line 29 or benefits. Proposals to contract out work shall be eligible for line 30 approval if the contractor’s wages are at the industry’s level and line 31 do not significantly undercut county pay rates. line 32 (3)  The contract does not cause the displacement of county line 33 employees. “Displacement” includes layoff, demotion, involuntary line 34 transfer to a new class, involuntary transfer to a new location line 35 requiring a change of residence, and time base reductions. line 36 “Displacement” does not include changes in shifts or days off or line 37 reassignment to other positions within the same class and general line 38 location. line 39 (4)  The contract does not cause vacant positions in county line 40 employment to remain unfilled. 96 AB 1250— 3 — HB -123-Item 5. - 49 line 1 (5)  The contract does not adversely affect the county’s line 2 affirmative action efforts. line 3 (6)  The savings shall be large enough to ensure that they will line 4 not be eliminated by private sector and county cost fluctuations line 5 that could normally be expected during the contracting period. line 6 (7)  The amount of savings clearly justifies the size and duration line 7 of the contracting agreement. line 8 (8)  The contract is awarded through a publicized, competitive line 9 bidding process. The county shall reserve the right to reject any line 10 and all bids or proposals. line 11 (9)  The contract includes specific provisions pertaining to the line 12 qualifications of the staff that will perform the work under the line 13 contract, as well as assurance that the contractor’s hiring practices line 14 meet applicable nondiscrimination, affirmative action standards. line 15 (10)  The potential for future economic risk to the county from line 16 potential contractor rate increases is minimal. line 17 (11)  The contract is with a firm. “Firm” means a corporation, line 18 partnership, nonprofit organization, or sole proprietorship. line 19 (12)  The potential economic advantage of contracting is not line 20 outweighed by the public’s interest in having a particular function line 21 performed directly by county government. Before executing a line 22 contract for personal services under this section, the county shall line 23 demonstrate that outsourcing the particular functions at issue is in line 24 the public interest, addressing the cost of the contract, the cost of line 25 administering the contract, the effect on the quality of services line 26 provided to the public, and any other relevant circumstances. line 27 (13)  The contract shall provide that it may be terminated at any line 28 time by the county without penalty if there is a material breach of line 29 the contract and notice is provided at least 30 days before line 30 termination. line 31 (14)  The county shall provide an orientation to employees of line 32 the contractor who will perform services pursuant to the contract. line 33 The orientation shall include, but is not limited to, all of the line 34 following: line 35 (A)  A description of the services to be provided pursuant to the line 36 contract. line 37 (B)  A description of the function and goals of the public agency line 38 responsible for providing the services in the absence of the contract. 96 — 4 —AB 1250 HB -124-Item 5. - 50 line 1 (C)  Any applicable rules governing provision of the services line 2 and how the employee may report violations of applicable rules line 3 or contractual requirements. line 4 (15)  The county shall be jointly and severally liable with the line 5 contractor and any of its subcontractors for: line 6 (A)  Employment law violations arising from performance of line 7 the contract, unless otherwise provided by a bona fide collective line 8 bargaining agreement covering the affected employees. line 9 (B)  Torts committed by the contractor or its subcontractors in line 10 the course of providing services under the contract. line 11 (16) line 12 (15)  If the contract is for personal services in excess of one line 13 hundred thousand dollars ($100,000) annually, all of the following line 14 shall occur: line 15 (A)  The county shall require the contractor to disclose all of the line 16 following information as part of its bid, application, or answer to line 17 a request for proposal: line 18 (i)  A description of all charges, claims, or complaints filed line 19 against the contractor with any federal, state, or local administrative line 20 agency during the prior 10 years. line 21 (ii)  A description of all civil complaints filed against the line 22 contractor in any state or federal court during the prior 10 years. line 23 (iii)  A description of all state or federal criminal complaints or line 24 indictments filed against the contractor, or any of its officers, line 25 directors, or managers, at any time. line 26 (iv)  A description of any debarments of the contractor by any line 27 public agency or licensing body at any time. line 28 (v)  The total compensation, including salaries and benefits, the line 29 contractor provides to workers performing work similar to that to line 30 be provided under the contract. line 31 (vi)  The total compensation, including salaries, benefits, options, line 32 and any other form of compensation, provided to the five highest line 33 compensated officers, directors, executives, or employees of the line 34 contractor. line 35 (vii)  Any other information the county deems necessary to line 36 ensure compliance with this section. line 37 (B)  Prior to entering into the contract, the county shall conduct, line 38 and make public, a study of cost-benefit analysis considering the line 39 potential impact of outsourcing the work covered by the contract, line 40 including, but not limited to: contract. The analysis shall include: 96 AB 1250— 5 — HB -125-Item 5. - 51 line 1 (i)  The potential loss of employment opportunities within the line 2 county and resultant loss of income to workers. line 3 (ii)  The economic impact on local businesses if consumer line 4 spending power is reduced as a result of reduced wages under the line 5 contract. line 6 (iii)  The impact on the county’s ability to provide social services line 7 and the effect of any reduction in social services on county line 8 residents. line 9 (iv)  Any environmental impact caused by contracting for the line 10 services at issue. line 11 (iv)  Potential impacts on the environment, if any. line 12 (C)  Prospective contractors shall reimburse the county for the line 13 cost of the cost-benefit analysis. line 14 (C) line 15 (D)  The contract shall provide that the county is entitled to line 16 receive a copy of any records related to the contractor’s or any line 17 subcontractor’s performance of the contract, and that any of those line 18 records shall be subject to the California Public Records Act line 19 (Chapter 3.5 (commencing with Section 6250) of Division 7 of line 20 Title 1). In furtherance of this subdivision, contractors and any line 21 subcontractors shall maintain records related to performance of line 22 the contract that ordinarily would be maintained by the county in line 23 performing the same functions. line 24 (D) line 25 (E)  The county shall include in the contract specific, measurable line 26 performance standards and provisions for a performance audit by line 27 the county, or an independent auditor approved by the county, to line 28 determine whether the performance standards are being met and line 29 whether the contractor is in compliance with applicable laws and line 30 regulations. The county shall not renew or extend the contract prior line 31 to receiving and considering the audit report. line 32 (E) line 33 (F)  (1)  The contract shall include provisions for an audit by line 34 the county, or an independent auditor approved by the county, to line 35 determine whether and to what extent the anticipated cost savings line 36 have actually been realized. The county shall not renew or extend line 37 the contract before receiving and considering the audit report. line 38 (2)  The contractor shall reimburse the county for the cost of the line 39 audit. 96 — 6 —AB 1250 HB -126-Item 5. - 52 line 1 (b)  This section does not preclude a county from adopting more line 2 restrictive rules regarding the contracting of public services. line 3 (c)  When otherwise permitted by law, the absence of any line 4 requirement of subdivision (a) shall not prevent personal services line 5 contracting when any of the following conditions are met: line 6 (1)  The contract is for a new county function and the Legislature line 7 has specifically mandated or authorized the performance of the line 8 work by independent contractors. line 9 (2)  The contract is between the county and another government line 10 entity for services to be performed by employees of the other line 11 government entity. line 12 (2) line 13 (3)  The services contracted cannot be performed satisfactorily line 14 by county employees, or are of such a highly specialized or line 15 technical nature that the necessary expert knowledge, experience, line 16 and ability are not available among county employees. line 17 (3) line 18 (4)  The services are incidental to a contract for the purchase or line 19 lease of real or personal property. Contracts under this criterion, line 20 known as “service agreements,” shall include, but not be limited line 21 to, agreements to service or maintain office equipment or line 22 computers that are leased or rented. line 23 (4) line 24 (5)  The legislative, administrative, or legal goals and purposes line 25 cannot be accomplished through the utilization of county line 26 employees. Contracts are permissible under this criterion to protect line 27 against a conflict of interest or to ensure independent and unbiased line 28 findings in cases where there is a clear need for a different, outside line 29 perspective. These contracts shall include, but not be limited to, line 30 obtaining expert witnesses in litigation. line 31 (5) line 32 (6)  The nature of the work is such that the standards of this part line 33 for emergency appointments apply. These contracts shall conform line 34 with Section 31000.4. line 35 (6) line 36 (7)  Public entities or officials need private counsel because a line 37 conflict of interest on the part of the county counsel’s office line 38 prevents it from representing the public entity or official without line 39 compromising its position. These contracts shall require the written line 40 consent of the county counsel. 96 AB 1250— 7 — HB -127-Item 5. - 53 line 1 (7) line 2 (8)  The contractor will provide equipment, materials, facilities, line 3 or support services that could not feasibly be provided by the line 4 county in the location where the services are to be performed. line 5 (8) line 6 (9)  The contractor will conduct training courses for which line 7 appropriately qualified county employee instructors are not line 8 available, provided that permanent instructor positions in academies line 9 or similar settings shall be filled by county employees. line 10 (9) line 11 (10)  The services are of such an urgent, temporary, or occasional line 12 nature that the delay incumbent in their implementation by county line 13 employees would frustrate their very purpose. line 14 (d)  All persons who provide services to a county under line 15 conditions constituting an employment relationship shall be line 16 employed directly by the county. line 17 (e)  (1)  Except as provided in paragraph (2), this section shall line 18 apply to all counties, including counties that have adopted a merit line 19 or civil service system. line 20 (2)  This section does not apply to a charter county formed line 21 pursuant to Section 3 of Article XI of the California Constitution. line 22 (f)  (1)  This section does not apply to any contract for services line 23 described in Section 4525 or 4529.10. line 24 (2)  This section does not apply to any contract that is subject line 25 to Chapter 1 (commencing with Section 1720) of Part 7 of Division line 26 2 of the Labor Code. line 27 (3)  This section does not apply to a contract for public transit line 28 services, including paratransit services, if the county’s transit line 29 services are fully funded by Federal Transit Administration line 30 assistance and the county is thereby subject to the guidelines line 31 established in FTA Circular 4220.1F or any subsequent guidelines line 32 or revisions issued by the Federal Transit Administration. line 33 (g)  This section shall apply to personal services contracts entered line 34 into, renewed, or extended on or after January 1, 2018. line 35 SEC. 2. Section 31000.11 is added to the Government Code, line 36 to read: line 37 31000.11. (a)  Each county shall maintain on its Internet Web line 38 site a searchable database of all contracts of an annual value in line 39 excess of one hundred thousand dollars ($100,000) five million 96 — 8 —AB 1250 HB -128-Item 5. - 54 line 1 dollars ($5,000,000) entered into pursuant to Section 31000.10. line 2 The database shall include, but is not limited to, the following: line 3 (1)  A description of the services provided under the contract. line 4 (2)  The name of the agency, department, or division responsible line 5 for providing the service in the absence of the contract. line 6 (3)  The name of the contractor and any subcontractors providing line 7 services under the contract. line 8 (4)  The effective and expiration dates of the contract. line 9 (5)  The annual amount paid pursuant to the contract to the line 10 contractor in the past three fiscal years and the current fiscal year, line 11 including the funding source for all amounts paid. line 12 (6)  The annual amount expected to be paid pursuant to the line 13 contract to the contractor in the next three fiscal years. line 14 (7)  The total projected cost of the contract for all fiscal years line 15 and the funding source for all amounts to be paid. line 16 (8)  The names of the employees of the contractor and any line 17 subcontractors providing services pursuant to the contract and their line 18 hourly pay rates, and the total number of full-time equivalent line 19 positions involved in performing the services under the contract. line 20 (9)  The names of any workers providing services pursuant to line 21 the contract as independent contractors and the compensation rates line 22 for such workers. line 23 (b)  The information identified in subdivision (a) shall be line 24 compiled in an annual service contractor expenditure budget line 25 accompanying the county budget, reflecting all spending on line 26 personal services contracts by the county. line 27 SEC. 3. Section 37103.1 is added to the Government Code, to line 28 read: line 29 37103.1. The purpose of this section and Section 37103.2 is line 30 to establish standards for the use of personal services contracts by line 31 cities. line 32 (a)  If otherwise permitted by law, a city or city agency may line 33 contract for personal services currently or customarily performed line 34 by city employees when all the following conditions are met: line 35 (1)  The city council or city agency clearly demonstrates that line 36 the proposed contract will result in actual overall cost savings to line 37 the city for the duration of the entire contract as compared with line 38 the city’s actual costs of providing the same services, provided line 39 that: 96 AB 1250— 9 — HB -129-Item 5. - 55 line 1 (A)  In comparing costs, there shall be included the city’s line 2 additional cost of providing the same service as proposed by a line 3 contractor. These additional costs shall include the salaries and line 4 benefits of additional staff that would be needed and the cost of line 5 additional space, equipment, and materials needed to perform the line 6 function. line 7 (B)  In comparing costs, there shall not be included the city’s line 8 indirect overhead costs unless these costs can be attributed solely line 9 to the function in question and would not exist if that function was line 10 not performed in city service. Indirect overhead costs shall mean line 11 the pro rata share of existing administrative salaries and benefits, line 12 rent, equipment costs, utilities, and materials. line 13 (C)  In comparing costs, there shall be included in the cost of a line 14 contractor providing a service any continuing city costs that would line 15 be directly associated with the contracted function. These line 16 continuing city costs shall include, but not be limited to, those for line 17 inspection, supervision, and monitoring. line 18 (2)  Proposals to contract out work shall not be approved solely line 19 on the basis that savings will result from lower contractor pay rates line 20 or benefits. Proposals to contract out work shall be eligible for line 21 approval if the contractor’s wages are at the industry’s level and line 22 do not significantly undercut city pay rates. line 23 (3)  The contract does not cause the displacement of city line 24 employees. “Displacement” includes layoff, demotion, involuntary line 25 transfer to a new class, involuntary transfer to a new location line 26 requiring a change of residence, and time base reductions. line 27 “Displacement” does not include changes in shifts or days off or line 28 reassignment to other positions within the same class and general line 29 location. line 30 (4)  The contract does not cause vacant positions in city line 31 employment to remain unfilled. line 32 (5)  The contract does not adversely affect the city’s affirmative line 33 action efforts. line 34 (6)  The savings shall be large enough to ensure that they will line 35 not be eliminated by private sector and city cost fluctuations that line 36 could normally be expected during the contracting period. line 37 (7)  The amount of savings clearly justifies the size and duration line 38 of the contracting agreement. 96 — 10 —AB 1250 HB -130-Item 5. - 56 line 1 (8)  The contract is awarded through a publicized, competitive line 2 bidding process. The city shall reserve the right to reject any and line 3 all bids or proposals. line 4 (9)  The contract includes specific provisions pertaining to the line 5 qualifications of the staff that will perform the work under the line 6 contract, as well as assurance that the contractor’s hiring practices line 7 meet applicable nondiscrimination, affirmative action standards. line 8 (10)  The potential for future economic risk to the city from line 9 potential contractor rate increases is minimal. line 10 (11)  The contract is with a firm. “Firm” means a corporation, line 11 partnership, nonprofit organization, or sole proprietorship. line 12 (12)  The potential economic advantage of contracting is not line 13 outweighed by the public’s interest in having a particular function line 14 performed directly by city government. Before executing a contract line 15 for personal services under this section, the city shall demonstrate line 16 that outsourcing the particular functions at issue is in the public line 17 interest, addressing the cost of the contract, the cost of line 18 administering the contract, the effect on the quality of services line 19 provided to the public, and any other relevant circumstances. line 20 (13)  The contract shall provide that it may be terminated at any line 21 time by the city without penalty if there is a material breach of the line 22 contract and notice is provided at least 30 days before termination. line 23 (14)  The city shall provide an orientation to employees of the line 24 contractor who will perform services pursuant to the contract. The line 25 orientation shall include, but is not limited to, all of the following: line 26 (A)  A description of the services to be provided pursuant to the line 27 contract. line 28 (B)  A description of the function and goals of the public agency line 29 responsible for providing the services in the absence of the contract. line 30 (C)  Any applicable rules governing provision of the services line 31 and how the employee may report violations of applicable rules line 32 or contractual requirements. line 33 (15)  The city shall be jointly and severally liable with the line 34 contractor and any of its subcontractors for: line 35 (A)  Employment law violations arising from performance of line 36 the contract, unless otherwise provided by a bona fide collective line 37 bargaining agreement covering the affected employees. line 38 (B)  Torts committed by the contractor or any of its line 39 subcontractors in the course of providing services under the line 40 contract. 96 AB 1250— 11 — HB -131-Item 5. - 57 line 1 (16) line 2 (15)  If the contract is for personal services in excess of one line 3 hundred thousand dollars ($100,000) annually, all of the following line 4 shall occur: line 5 (A)  The city shall require the contractor to disclose all of the line 6 following information as part of its bid, application, or answer to line 7 a request for proposal: line 8 (i)  A description of all charges, claims, or complaints filed line 9 against the contractor with any federal, state, or local administrative line 10 agency during the prior 10 years. line 11 (ii)  A description of all civil complaints filed against the line 12 contractor in any state or federal court during the prior 10 years. line 13 (iii)  A description of all state or federal criminal complaints or line 14 indictments filed against the contractor, or any of its officers, line 15 directors, or managers, at any time. line 16 (iv)  A description of any debarments of the contractor by any line 17 public agency or licensing body at any time. line 18 (v)  The total compensation, including salaries and benefits, the line 19 contractor provides to workers performing work similar to that to line 20 be provided under the contract. line 21 (vi)  The total compensation, including salaries, benefits, options, line 22 and any other form of compensation, provided to the five highest line 23 compensated officers, directors, executives, or employees of the line 24 contractor. line 25 (vii)  Any other information the city deems necessary to ensure line 26 compliance with this section. line 27 (B)  Prior to entering into the contract, the city shall conduct, line 28 and make public, a study of cost-benefit analysis considering the line 29 potential impact of outsourcing the work covered by the contract, line 30 including, but not limited to: contract. The analysis shall include: line 31 (i)  The potential loss of employment opportunities within the line 32 city and resultant loss of income to workers. line 33 (ii)  The economic impact on local businesses if consumer line 34 spending power is reduced as a result of reduced wages under the line 35 contract. line 36 (iii)  The impact on the city’s ability to provide social services line 37 and the effect of any reduction in social services on city residents. line 38 (iv)  Any environmental impact caused by contracting for the line 39 services at issue. line 40 (iv)  Potential impacts on the environment, if any. 96 — 12 —AB 1250 HB -132-Item 5. - 58 line 1 (C)  Prospective contractors shall reimburse the city for the cost line 2 of the cost-benefit analysis. line 3 (C) line 4 (D)  The contract shall provide that the city is entitled to receive line 5 a copy of any records related to the contractor’s or any line 6 subcontractor’s performance of the contract, and that any such line 7 records shall be subject to the California Public Records Act line 8 (Chapter 5 (commencing with Section 6250) of Division 7 of Title line 9 1). In furtherance of this subdivision, contractors and any line 10 subcontractors shall maintain records related to performance of line 11 the contract that ordinarily would be maintained by the city in line 12 performing the same functions. line 13 (D) line 14 (E)  (1)  The city shall include in the contract specific, line 15 measurable performance standards and provisions for a line 16 performance audit by the city, or an independent auditor approved line 17 by the city, to determine whether the performance standards are line 18 being met and whether the contractor is in compliance with line 19 applicable laws and regulations. The legislative body shall not line 20 renew or extend the contract prior to receiving and considering line 21 the audit report. line 22 (2)  The contractor shall reimburse the city for the cost of the line 23 audit. line 24 (E) line 25 (F)  The contract shall include provisions for an audit by the line 26 city, or an independent auditor approved by the city, to determine line 27 whether and to what extent the anticipated cost savings have line 28 actually been realized. The city shall not renew or extend the line 29 contract before receiving and considering the audit report. line 30 (b)  This section does not preclude a city from adopting more line 31 restrictive rules regarding the contracting of public services. line 32 (c)  When otherwise permitted by law, the absence of any line 33 requirement of subdivision (a) shall not prevent personal services line 34 contracting when any of the following conditions are met: line 35 (1)  The contract is for a new city function and the Legislature line 36 has specifically mandated or authorized the performance of the line 37 work by independent contractors. line 38 (2)  The services contracted cannot be performed satisfactorily line 39 by city employees, or are of such a highly specialized or technical 96 AB 1250— 13 — HB -133-Item 5. - 59 line 1 nature that the necessary expert knowledge, experience, and ability line 2 are not available among city employees. line 3 (3)  The services are incidental to a contract for the purchase or line 4 lease of real or personal property. Contracts under this criterion, line 5 known as “service agreements,” shall include, but not be limited line 6 to, agreements to service or maintain office equipment or line 7 computers that are leased or rented. line 8 (4)  The legislative, administrative, or legal goals and purposes line 9 cannot be accomplished through the utilization of city employees. line 10 Contracts are permissible under this criterion to protect against a line 11 conflict of interest or to ensure independent and unbiased findings line 12 in cases where there is a clear need for a different, outside line 13 perspective. These contracts shall include, but not be limited to, line 14 obtaining expert witnesses in litigation. line 15 (5)  The nature of the work is such that the standards of this title line 16 for emergency appointments apply. These contracts shall conform line 17 with Section 45080. line 18 (6)  Public entities or officials need private counsel because a line 19 conflict of interest on the part of the city attorney’s office prevents line 20 it from representing the public entity or official without line 21 compromising its position. These contracts shall require the written line 22 consent of the city attorney. line 23 (7)  The contractor will provide equipment, materials, facilities, line 24 or support services that could not feasibly be provided by the city line 25 in the location where the services are to be performed. line 26 (8)  The contractor will conduct training courses for which line 27 appropriately qualified city employee instructors are not available, line 28 provided that permanent instructor positions in academies or similar line 29 settings shall be filled by city employees. line 30 (9)  The services are of such an urgent, temporary, or occasional line 31 nature that the delay incumbent in their implementation by city line 32 employees would frustrate their very purpose. line 33 (d)  All persons who provide services to a city under conditions line 34 constituting an employment relationship shall be employed directly line 35 by the city. line 36 (e)  (1)  Except as provided in paragraph (2), this section shall line 37 apply to all cities, including cities that have adopted a merit or line 38 civil service system. line 39 (2)  This section does not apply to a charter city formed pursuant line 40 to Section 3 of Article XI of the California Constitution. 96 — 14 —AB 1250 HB -134-Item 5. - 60 line 1 (f)  (1)  This section does not apply to any contract for services line 2 described in Section 4525 or 4529.10. line 3 (2)  This section does not apply to any contract that is subject line 4 to Chapter 1 (commencing with Section 1720) of Part 7 of Division line 5 2 of the Labor Code. line 6 (3)  This section does not apply to a contract for public transit line 7 services, including paratransit services, if the county’s transit line 8 services are fully funded by Federal Transit Administration line 9 assistance and the county is thereby subject to the guidelines line 10 established in FTA Circular 4220.1F or any subsequent guidelines line 11 or revisions issued by the Federal Transit Administration. line 12 (g)  This section shall apply to personal services contracts entered line 13 into, renewed, or extended on or after January 1, 2018. line 14 SEC. 4. Section 37103.2 is added to the Government Code, to line 15 read: line 16 37103.2. (a)  Each city shall maintain on its Internet Web site line 17 a searchable database of all contracts of an annual value in excess line 18 of one hundred thousand dollars ($100,000) five million dollars line 19 ($5,000,000) entered into pursuant to Section 37103.1. The line 20 database shall include, but is not limited to, the following: line 21 (1)  A description of the services provided under the contract. line 22 (2)  The name of the agency, department, or division responsible line 23 for providing the service in the absence of the contract. line 24 (3)  The name of the contractor and any subcontractors providing line 25 services under the contract. line 26 (4)  The effective and expiration dates of the contract. line 27 (5)  The annual amount paid pursuant to the contract to the line 28 contractor in the past three fiscal years and the current fiscal year, line 29 including the funding source for all amounts paid. line 30 (6)  The annual amount expected to be paid pursuant to the line 31 contract to the contractor in the next three fiscal years. line 32 (7)  The total projected cost of the contract for all fiscal years line 33 and the funding source for all amounts to be paid. line 34 (8)  The names of the employees of the contractor and any line 35 subcontractors providing services pursuant to the contract and their line 36 hourly pay rates, and the total number of full-time equivalent line 37 positions involved in performing the services under the contract. line 38 (9)  The names of any workers providing services pursuant to line 39 the contract as independent contractors and the compensation rates line 40 for such workers. 96 AB 1250— 15 — HB -135-Item 5. - 61 line 1 (b)  The information identified in subdivision (a) shall be line 2 compiled in an annual service contractor expenditure budget line 3 accompanying the county budget, reflecting all spending on line 4 personal services contracts by the county. line 5 SEC. 5. The provisions of this act are severable. If any line 6 provision of this act or its application is held invalid, that invalidity line 7 shall not affect other provisions or applications that can be given line 8 effect without the invalid provision or application. line 9 SEC. 6. If the Commission on State Mandates determines that line 10 this act contains costs mandated by the state, reimbursement to line 11 local agencies and school districts for those costs shall be made line 12 pursuant to Part 7 (commencing with Section 17500) of Division line 13 4 of Title 2 of the Government Code. O 96 — 16 —AB 1250 HB -136-Item 5. - 62 Dept. ID PW 17 -018 Page 1 of 2 Meeting Date: 5/1/2017 Statement of Issue: Pursuant to Resolution 2017-08, a public hearing must be held before staff can initiate the removal of weeds, refuse, and rubbish for undeveloped private properties at the owner’s expense. Financial Impact: Funds in the amount of $15,000 are budgeted in Weed Abatement, Account No. 10085416.64620, for abatement of public and private properties. Costs for abatement of private properties will be added to the County Assessor’s tax roll. Recommended Action: A) Open a public hearing for any objections and protests to the proposed removal of weeds, refuse and rubbish; and, B) Authorize the Superintendent of Streets (Director of Public Works) to proceed with the abatement of said nuisance. Alternative Action(s): Postpone the hearing to a later date and direct staff to modify the annual weed abatement schedule. Analysis: On March 6, 2017, Council adopted Resolution 2017-08 declaring the certain weeds, refuse, and rubbish on public and private properties are a public nuisance that should be abated as provided in Division 3, Article 2, Chapter 13 of the California Government Code. The City cannot commence removal of weeds, refuse, and rubbish from private property at the owner’s expense until a public hearing has been held to hear any objections and/or protests. The resolution fixed a public hearing date of May 1, 2017. If private property owner is unable or unwilling to clear their property by their own means, City staff will complete the task. If the City clears the property, the private property owner is billed for the City’s cost on their property tax bill and these funds are reimbursed to the General Fund. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/1/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Conduct Public Hearing for Annual Weed Abatement Program and authorize the Director of Public Works to proceed with abatement of public nuisance HB -137-Item 6. - 1 Dept. ID PW 17 -018 Page 2 of 2 Meeting Date: 5/1/2017 Exhibit A of Resolution 2017-08 indicated a total of 151 private properties. The resolution required that notices be posted on all affected private properties not later than 10 days prior to the time of the hearing of objections. This action was taken and the Affidavit of Posting is attached. Environmental Status: Not required. Strategic Plan Goal: Maintain Public Safety Attachment(s): 1. Resolution 2017-08 2. Affidavit of Posting Notice To Destroy Weeds 3. Notice to Destroy Weeds and Remove Rubbish and Refuse 4. PowerPoint Presentation HB -138-Item 6. - 2 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 WHEREAS, it has come to the attention of the City Council of the City of Huntington Beach that certain weeds more particularly described below are growing upon certain streets, sidewalks, parkways and private property in the City of Huntington Beach, and that rubbish and refuse are found upon parkways, sidewalks and private property in the City, and that the same are a public nuisance; and The City Council of the City of Huntington Beach determines that said weeds and rubbish and refuse should be removed and abated as a public nuisance in accordance with the provisions of Division 3, Chapter 13, Article 2 of the California Government Code, commencing with Section 39560. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. Pursuant to the provisions of Division 3, Chapter 13, Article 2 of the California Government Code and Huntington Beach Municipal Code, commencing with Section 39560, Chapter 8.16, the City Council of the City of Huntington Beach hereby determines and declares that weeds that bear seeds of a downy or winged nature, and weeds that attain such a large growth as to become, when dry, a fire menace, and dry grass, stubble, brush, litter or other flammable material which endangers the public safety by creating a fire hazard, and weeds that are otherwise noxious or dangerous, are growing upon certain streets, sidewalks, parkways and private property in the City, and that rubbish and refuse are found upon parkways, sidewalks and private property in the City, and the same are hereby declared to be a public nuisance. The names of such streets as they are commonly known, and the property fronting such streets, sidewalks or parkways, or where such nuisance exists are hereinafter particularly described according to the official assessment maps of the County of Orange, as set forth in Exhibit A, attached hereto and incorporated by this reference. 2. The Director of Public Works of the City of Huntington Beach for the purpose of this Resolution, and pursuant to Section 39560, el seq., of the California Government Code, is hereby designated as the person to perform the duties imposed by law, and is hereby instructed and directed to prepare and post notices, to destroy weeds, or to remove said rubbish and refuse as required by law. Such notices shall be in accordance with the requirements contained in Government Code Sections 39564 through 39567, and shall be conspicuously posted on or in front of the property where the nuisance exists or, if the property has no frontage, upon any street, highway or road most likely to give actual notice to the owner. The notices shall be 17-5633/151190/DO 1 HB -139-Item 6. - 3 RESOLUTION NO. 2017-08 posted as follows: One notice to each piece or parcel of property in separate ownership of not over fifty (50) feet frontage; not more than two (2) notices to any such parcel of property in separate ownership with a frontage of one hundred (100) feet or less; and if the frontage of any place or parcel of property in separate ownership is greater than one hundred (100) feet, such notices shall be posted at not more than one hundred (100) feet apart. Such notice shall be posted at least ten (10) days prior to the time of hearing of objections. 3. The City Council does hereby set May 1, 2017 at 6:00 p.m., as the time, or as soon thereafter as the matter may be heard, in the Council Chambers in the Civic Center, Huntington Beach, California as the place for hearing objections and protests to the proposed removal of such weeds, rubbish and refuse. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6th day of March , 2017. REVIEWED AND APPROVED: City/Manager City Attorney Dr-o -L.t.att7 AA.47 17-5633/151190/DO 2 HB -140-Item 6. - 4 2017 Vacant Parcels Private Ownership Exhibit A APN LOCATION SIZE SQ. FT. 023-093-18 CORNER 14TH & MAIN ODD 7,900 023-114-14 S/E CORNER 20TH & ACACIA 117.5 X 50 5,875 023-124-28 S/SIDE 20TH @ PECAN 100 X 117.5 11,750 023-124-29 S/SIDE 20TH @ PECAN 100 X 117.5 11,750 023-124-30 S/SIDE 20TH @ PECAN 100X 117.5 11,750 023-124-31 S/SIDE 20TH @ PECAN 100 X 117.5 11,750 023-124-04 S/SIDE 20TH BTW PECAN & ORANGE 50 X 117.5 5,875 023-127-27 S/SIDE 21ST BTW OLIVE & ORANGE 117.5 X 25 2,938 023-134-12 N/SIDE 19TH BTW OLIVE & WALNUT 25 X 95 2,375 023-137-02 S/SIDE 21ST BTW PCH & WALNUT 117.5 X 37.5 4,406 023-141-17 S/E CORNER 19TH & ACACIA 117.5 X 50 5,875 023-142-16 17TH BTW PALM & ACACIA 117.5 X 50 5,875 023-147-24 N/VV CORNER ACACIA & 16TH 117.5 X 25 2,938 023-147-25 NM/ CORNER ACACIA & 16TH 117.5 X 25 2,938 023-156-14 N/SIDE 17TH BTW OLIVE & ORANGE 117.5 X 25 2,938 023-167-04 CORNER OF 17TH AND PCH 163 X 50 8,150 023-167-16 CORNER OF 16TH AND PCH 163 X 25 4,075 024-011-25 14th @ ACACIA 25 X 117.5 2,938 024-012-02 S/SIDE 14TH @ PALM 117.5 X 50 5,875 024-107-09 NM/ CORNER 8TH & PECAN 50 X 117.5 5,875 024-123-07 N/SIDE OF 8TH ST; BTW PCH & WALNUT 62.5 X 117.5 7,343 024-134-04 S SIDE OF MAIN STREET, N OF ORANGE 75 X 117.5 8,813 024-134-05 S SIDE OF MAIN STREET, N OF ORANGE ODD 10,693 024-134-15 TRIANGLE E/S LAKE BTW ALLEY & ORANGE ODD 5,640 024-142-22 N/SIDE 5TH BTVV OLIVE & ORANGE 25 X 107.5 2,688 024-144-10 W/SIDE of 3RD SOUTH OF ORANGE 75 X 120 8,712 024-151-29 PCH SO. CORNER OF 7TH 100 X 108 10,800 024-162-04 1ST ST S OF OLIVE 25 X 117.5 2,937 024-164-13 3RD ST, BTW OLIVE AND ORANGE 25 X 117.5 2,938 024-164-15 3RD ST, BTW OLIVE AND ORANGE 25 X 117.5 2,938 024-164-16 3RD ST, BTW OLIVE AND ORANGE 25 X 117.5 2,938 025-107-12 S/W CORNER CALIFORNIA & KNOXVILLE 27 X 127.5 3,443 025-180-13 E/SIDE BEACH SO. OF WILLIAMS 125 X75 9,375 025-180-15 S/SIDE WILLIAMS WEST OF BEACH 300 X 120 36,000 107-665-13 SARU @ MINORU ODD 2,551 107-691-20 SE CORNER BEACH & TERRY 150X150 22,500 110-021-23 WARNER @ SANDRALEE ODD 6,500 110-023-07 W/SIDE OF SANDRA LEE- S/OF WARNER 60 X 135 8,100 110-151-05 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-151-06 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-151-10 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-151-11 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-152-07 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-152-09 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-152-23 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-153-05 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-162-05 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-162-06 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-162-19 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-163-13 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-163-16 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-163-17 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 Page lof 3 HB -141-Item 6. - 5 2017 Vacant Parcels Private Ownership Exhibit A APN LOCATION SIZE SQ. FT. 110-164-06 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-164-07 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-164-08 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-164-11 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-164-12 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-164-15 ENCYCLOPEDIA - N/OF ELLIS 112 X 50 5,600 110-164-18 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-165-01 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-165-05 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-181-05 ENCYCLOPEDIA- N/OF ELLIS 112 x25 2,800 110-182-03 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-182-11 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-184-04 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-184-10 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-184-16 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-185-06 ENCYCLOPEDIA - N/OF ELLIS 112 X 50 5,600 110-185-15 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-186-03 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-186-04 ENCYCLOPEDIA - N/OF ELLIS 112 X 50 5,600 110-186-07 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-186-08 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-186-09 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-186-14 ENCYCLOPEDIA - N/OF ELLIS 112 X 25 2,800 110-186-15 ENCYCLOPEDIA- N/OF ELLIS 112 X 25 2,800 110-186-16 ENCYCLOPEDIA- N/OF ELLIS 112 X25 2,800 110-211-01 W/SIDE GOLDENWEST S/OF ELLIS 25 X 87 2,175 110-211-04 W/SIDE GOLDENWEST S/OF ELLIS 25 X 87 2,175 110-211-05 W/SIDE GOLDEN WEST S/OF ELLIS 175 X 87 15,225 111-022-07 S/SIDE OF WARNER, E/OF GOTHARD 97.5 X 80 7,800 111-074-02 NE Corner Garfield & Gothard ODD 362,870 111-120-11 N/E CORNER GARFIELD & GOLDENWEST 20 X 100 2,000 111-120-12 N/E CORNER GARFIELD & GOLDENWEST 115 X 50 5,750 111-130-09 S/E CORNER GARFIELD & GOLDENWEST 100 x 117 11,700 111-130-10 S/E CORNER GARFIELD & GOLDENWEST 50 X 117 5,850 111-140-28 E/SIDE STEWART S/OF GARFIELD 10,875 111-140-29 E/SIDE STEWART S/OF GARFIELD 10,875 111-140-30 E/SIDE STEWART S/OF GARFIELD 10,875 111-140-31 E/SIDE STEWART S/OF GARFIELD 10,875 111-140-32 E/SIDE STEWART S/OF GARFIELD ODD - 111-140-33 E/SIDE STEWART S/OF GARFIELD ODD - 111-150-47 GARFIELD E/OF GOTHARD 127X 175 22,225 142-172-01 S/SIDE HEIL @ BEACH ODD 7,600 145-092-27 ROYALIST W OF PLYMOUTH 36 X 100 3,700 146-221-17 SW CORNER BOLSA CHICA/ HAIL 121 X 132 16,988 146-311-17 NW CORNER WARNER AND LARK 120 x 177 21,240 146-463-14 S/E CORNER GOLDENWEST & EDINGER 150 X 120 18,000 153-051-11 E/S BEACH N/OF YORKTOWN 100 X442 44,200 153-051-12 YORKTOWN EAST OF BEACH 100x190 19,001 153-201-27 S/SIDE GARFIELD W/O BROOKHURST 75 X 400 30,000 159-031-18 W/SIDE BEACH N/OF MAIN 34,284 159-121-22 E/SIDE DELAWARE N/OF GARFIELD 300 X 150 43,560 159-121-25 E/SIDE DELAWARE N/OF GARFIELD 149 x 289 43,200 Page 2 of 3 HB -142-Item 6. - 6 2017 Vacant Parcels Private Ownership Exhibit A APN LOCATION SIZE SQ. FT. 159-151-16 GARFIELD E/OF DELAWARE 77 x 150 11,550 159-151-15 GARFIELD E/OF DELAWARE 75 X 100 7,499 159-282-14 N/SIDE CLAY BTW HOLLY AND HUNTINGTON 49,800 159-393-14 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-17 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-18 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-24 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-29 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-44 ENCYCLOPEDIA- S/SIDE ELLIS 112 X25 2,800 159-393-45 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-46 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-49 ENCYCLOPEDIA- S/SIDE ELLIS 112 X25 2,800 159-393-56 ENCYCLOPEDIA- S/SIDE ELLIS ODD 14,000 159-393-57 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-58 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-59 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25 2,800 159-393-60 ENCYCLOPEDIA - S/SIDE ELLIS 112 X 25/ 2,800 159-393-61 ENCYCLOPEDIA - S/SIDE ELLIS 50 X 112 5,600 159-393-62 ENCYCLOPEDIA - S/SIDE ELLIS 50 X 112 5,600 159-393-63 ENCYCLOPEDIA - S/SIDE ELLIS ODD - 163-302-33 LYNN @ LOS PATOS 79 X 95.5 7,545 163-302-34 LYNN @ LOS PATOS 109 X 95.5 10,409 165-364-06 CYPRESS @ ELM 133 x 41 5,453 165-364-24 CYPRESS @ ELM ODD 12,100 167-311-02 E/SIDE BEACH N/OF HOLLAND 264 X 174 45,936 167-321-10 W/SIDE "B" N/OF BLAYLOCK 45 X 116 5,220 167-325-19 E/SIDE BEACH S/OF BLAYLOCK 95 X 100 9,500 167-325-20 E/SIDE BEACH S/OF BLAYLOCK 100 X 103 10,300 167-325-21 E/SIDE BEACH S/OF BLAYLOCK 30 X 198 5,940 178-071-01 SAN CORNER EDINGER & BOLSA CHICA 145 X 140 20,300 178-161-35 N/S HEIL E/OF LE GRANDE 131 X 120 15,720 178-201-28 GREEN BTW PIERCE & NEELY 25 X49 1,225 178-201-29 GREEN BTW PIERCE & NEELY 25 X49 1,225 178-201-30 GREEN BTW PIERCE & NEELY 50 X 49 2,450 178-201-31 GREEN BTW PIERCE & NEELY 25 X49 1,225 178-201-32 GREEN BTW PIERCE & NEELY 25 X49 1,225 178-201-33 GREEN BTW PIERCE & NEELY 51 X 49 2,499 178-363-52 S/SIDE DIABLO CIR 76 x 148 5,000 178-411-17 END OF MALDEN CIRCLE ODD 9,000 178-411-19 END OF MALDEN CIRCLE ODD 9,000 178-432-03 CHANNEL S/OF ADMIRALTY 125 X 61 7,625 178-532-78 PARK AVE & PCH - SUNSET BEACH 30 x 90 2,700 178-543-19 PCH/6TH ST -SUNSET BEACH 30 x 90 2,700 178-551-13 S/SIDE PCH W OF WARNER -SUNSET BEACH 30 x 74 2,250 178-561-35 BAYVIEW' 31X60 1,950 178-651-36 PARK AVE & PCH - SUNSET BEACH ODD - 195-111-42 RANCHO AT ASTRONAUTICS ODD 111,494 Total Number of Parcels = 151 Page 3 of 3 HB -143-Item 6. - 7 Res. No. 2017-08 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on March 6, 2017 by the following vote: AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson NOES: None ABSENT: None RECUSE: None 9.6712tezzato City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California HB -144-Item 6. - 8 AFFIDAVIT OF POSTING NOTICE TO DESTROY WEEDS State of California County of Orange Travis K. Hopkins, being duly sworn, deposes, and says: That he is now and was during all the time mentioned the duly appointed and qualified Street Superintendent of the City of Huntington Beach, in said County and State. That on the 6th day of March, 2017 the City Council of said City passed its Resolution of Intention No. 2017-08 declaring that noxious and dangerous weeds were growing upon or in front of property as described in said Resolution No. 2017-08. That after adoption of said Resolution he caused to be posted conspicuously, along all the streets and property within the district described in said Resolution, notices of passage of said Resolution and headed, "Notice to Destroy Weeds and Remove Rubbish and Refuse," one of which notices, similar to the notices posted as aforesaid, is annexed hereto and made a part hereof. That all notices were posted: (a) One notice to each separately owned parcel of property of not over fifty (50) feet frontage. (b) Not more than two notices to any such parcel of one hundred (100) feet of frontage or less. (c) Notices of not more than one hundred (100) feet apart if the frontage of such a parcel is greater than one hundred (100) feet. That he completed all the posting of said notices on the 7th day of April 2017, and thereafter he made this affidavit and filed it with the City Clerk of the City of Huntington Beach, California. 141 Travis K. Hopkins Superintendent of Streets (Director of Public Works) Subscribed and sworn to before me on this day of , 2017 /2-7779-e, HB -145-Item 6. - 9 Signature CALIFORNIA JURAT WITH AFFIANT STATEMENT GOVERNMENT CODE § 8202 •-9, .9,..1440...,T1.4f.T.1. _aittrats..1./.7 asy—at/T..1 .441/T11 al.s...4/T1.1...a . "VSee Attached Document (Notary to cross out lines 1-6 below) CI See Statement Below (Lines 1-6 to be completed only by document signer[s], not Notary) Signature of Document Signer No. 1 Signature of Document Signer No. 2 (if any) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of PL. ESPARZA Commission * 2032750 I Notary Public - California z Z Orange County My Cornn2.....Extres_Aug4,20_17.4 :re Seal Place Notary Seal Above Subscribed and sworn to (or affirmed) before me on this / 7 m day of , 20 / 7, by Date Month Year (1) (and (2) (2) Name(s) of Signer(s) proved to me on the basis of satisfactory evidence to be the person who appeared before me. OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: 48::7641.)/7- Of 14777 --- 71) Document Date: Number of Pages: Signer(s) Other Than Named Above: .4/ss&S. ©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5910 HB -146-Item 6. - 10 NOTICE TO DESTROY WEEDS AND REMOVE RUBBISH AND REFUSE NOTICE IS HEREBY GIVEN THAT ON THE 6TH DAY OF MARCH 2017, THE CITY COUNCIL, CITY OF HUNTINGTON BEACH, PASSED RESOLUTION NO. 2017-08. DECLARING THAT NOXIOUS OR DANGEROUS WEEDS WERE GROWING UPON OR IN FRONT OF THE PROPERTY ON THIS STREET, AND THAT RUBBISH AND REFUSE WERE UPON OR IN FRONT OF PROPERTY ON THIS STREET IN THE CITY OF HUNTINGTON BEACH AND MORE PARTICULARLY DESCRIBED IN THE RESOLUTION, AND THAT THEY CONSTITUTE A PUBLIC NUISANCE WHICH MUST BE ABATED BY THE REMOVAL OF WEEDS, RUBBISH AND REFUSE. OTHERWISE, THEY WILL BE REMOVED AND THE NUISANCE ABATED BY THE CITY AND COST OF REMOVAL ASSESSED UPON THE LAND FROM OR IN FRONT OF WHICH THE WEEDS, RUBBISH AND REFUSE ARE REMOVED AND WILL CONSTITUTE A LIEN UPON SUCH LAND UNTIL PAID. REFERENCE IS HEREBY MADE TO THE RESOLUTION FOR FURTHER PARTICULARS. A COPY OF SAID RESOLUTION IS ON FILE IN THE OFFICE OF THE CITY CLERK. ALL PROPERTY OWNERS HAVING ANY OBJECTIONS TO THE PROPOSED REMOVAL OF THE WEEDS, RUBBISH, REFUSE, AND DIRT ARE HEREBY NOTIFIED TO ATTEND A MEETING OF THE CITY COUNCIL, CITY OF HUNTINGTON BEACH, TO BE HELD ON THE 1ST DAY OF MAY AT THE HOUR OF 6:00 P.M. OR AS SOON THEREAFTER AS POSSIBLE, WHEN THEIR OBJECTIONS WILL BE HEARD AND GIVEN DUE CONSIDERATION. DATED THIS 27TH DAY OF MARCH 2017 TRAVIS K. HOPKINS SUPERINTENDENT OF STREETS (DIRECTOR OF PUBLIC WORKS) CITY OF HUNTINGTON BEACH IF YOU HAVE QUESTIONS REGARDING THIS NOTICE PLEASE CONTACT (714) 536-5522 HB -147-Item 6. - 11 City of Huntington BeachCity of Huntington BeachCity of Huntington BeachCity of Huntington Beach May 1, 2017May 1, 2017May 1, 2017May 1, 2017 ANNUAL WEED, RUBBISH, ANNUAL WEED, RUBBISH, AND REFUSE ABATEMENT PROGRAM item #HB -148-Item 6. - 12 PROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINE March 6, 2017 City Council adopted Resolution No. 2017-08 Weeds, rubbish, and refuse upon certain Weeds, rubbish, and refuse upon certain streets, sidewalks, parkways and private properties in city were declared nuisance Affected properties were identified through field inspections and document researchHB -149-Item 6. - 13 PROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINE March 23, 2017: Letters were mailed to private property owners April 3 –April 7, 2017 Affected private April 3 –April 7, 2017 Affected private properties were posted with the Notice to Destroy Weeds and Remove Rubbish and RefuseHB -150-Item 6. - 14 PROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINE May 1, 2017: Hearing of public objections at City Council meeting May 5, 2017: Deadline for private property May 5, 2017: Deadline for private property owners to respond to city May 15, 2017: Abatement to commence on all properties for completion on or around June 9, 2017HB -151-Item 6. - 15 PROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINEPROGRAM TIMELINE July 7, 2017: Cost per parcel to be posted on Council Bulletin Board July 17, 2017: City Council will be requested to certify clearing costs for inclusion on County 2017-2018 Tax Roll HB -152-Item 6. - 16 CITY OF HUNTINGTON BEACH City Council Interoffice Communication Honorable Ma Mayor Barb May 1,2017 Pro Tern and City Council Members Igleize, and Council Member Jill Hardy COUNCIL ITEM FOR MAY 1, 2017 CITY COUNCIL MEETING - ESTABLISHMENT OF A HUNTINGTON BEACH COMMUNITY FOUNDATION (FOUNDATION) STATEMENT OF ISSUE: The City of Huntington Beach works cooperatively with many organizations throughout the City to facilitate and coordinate events and activities for the benefit of the community. With so many organizations and nonprofits working together to serve the community, there is a need for a centralized funding source to coordinate these efforts and help them come to fruition. We propose the establishment of a "Huntington Beach Community Foundation" in order to promote and advance philanthropy in the Community and help support our nonprofit organizations and public institutions that enhance the quality of life within our City. Former Mayor Don Hansen proposed the creation of a Community Foundation that was never established. The Huntington Beach Community Foundation would be developed under the Non-Profit Public Benefit Corporation Law of California for public and charitable purposes. The Foundation would be organized under the 501(0(3) section of the Internal Revenue Code. Huntington Beach is currently surrounded by cities that have established, and benefited from, Community Foundations. Fountain Valley, Tustin, Lake Forest, Orange, Placentia, Villa Park, and Garden Grove each utilize their own Community Foundation to secure funding for their nonprofit organizations. The residents of Huntington Beach are passionate about their City and regularly donate to community causes. A "Huntington Beach Community Foundation" can serve as an umbrella organization to assist local nonprofit causes throughout the City. Monies collected through the Foundation will be allocated strictly to organizations that benefit the community of Huntington Beach as a whole. Based on best practices, the board would be established by the City Council. RECOMMENDED ACTION: Direct the City Attorney to prepare Articles of Incorporation and draft Bylaws for the Huntington Beach Community Foundation. Direct the City Manager's Office to file the appropriate paperwork with the Secretary of State. The initial development will call for the appointment of seven Directors of the Foundation, with the Articles of Incorporation allowing for amendments to the total number of directors. XC: Fred A. Wilson, City Manager Ken Domer, Assistant City Manager Robin Estanislau, City Clerk Michael Gates, City Attorney To: From: Date: Subject: HB -153-Item 7. - 1 CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable Mayor and City Council Members From: Billy O’Connell, City Council Member Date: April 24, 2017 Subject: CITY COUNCIL MEMBER ITEM FOR THE MAY 1, 2017, CITY COUNCIL MEETING – REQUEST FOR PERFORMANCE REVIEW OF THE OVERALL ENTITLEMENT AND PERMITTING PROCESS STATEMENT OF ISSUE Providing excellent customer service should be one of the primary goals of our city departments that interface with the public. As Council Members, we receive regular feedback from constituents as to their experiences with various departments of city government. In terms of customer satisfaction or dissatisfaction with certain city services, the most feedback I receive is from business owners and residents who are trying to obtain a development permit from the city. The comments range from developers experiencing extended entitlement processing times to business owners encountering delays in receiving final permit approval to open or expand their businesses, as well as residents facing delays on home remodels. Performance reviews are a tool available to local government to evaluate the effectiveness and efficiency of public services including assessment of consumer satisfaction. A performance review offers an independent third-party evaluation of services with a goal of identifying deficiencies and recommending solutions. The goal is to create organization-wide service excellence and provide a platform for continuance service improvement. RECOMMENDED ACTION Establish an Ad-Hoc City Council Committee to work with the City Manager to define a scope of work for a performance review of the zoning entitlement and building permit review process city- wide. Return to the City Council with a scope of work and proposed budget. xc: Fred A. Wilson, City Manager Ken Domer, Assistant City Manager Robin Estanislau, City Clerk Scott Hess, Director of Community Development HB -154-Item 8. - 1 CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable Mayor and City Council Members From: Billy O’Connell, City Council Member Date: May 1, 2017 Subject: CITY COUNCIL MEMBER ITEM FOR THE MAY 1, 2017, CITY COUNCIL MEETING – CONSIDER A PILOT PROGRAM UTILIZING ORGANIC PESTICIDES IN CENTRAL PARK WEST STATEMENT OF ISSUE: The objective of the City weed control program is: (1) To provide and maintain a high level of quality weed control in parks, along all main arterials, right-of-ways, bike paths, lots and easements, and (2) To control weeds whose seeds are of a winged or downy nature, weeds which attain such large growth as to become, when dry, a fire menace, and dry grass, stubble, brush, litter or other flammable material which endangers the public safety by creating a fire hazard, as per city ordinance. This plan is accomplished through a combination of mowing, string trimming, hand pulling and cultivation, mulching, and application of pesticides. Pesticide is a general term used to describe a substance used for plant, animal and/or insect control. Herbicide is a subcategory. These substances are used to mitigate detrimental effects of weeds and invasive plants to City-maintained landscaping at parks, facilities, and right-of-way. Many agencies are now considering moving away from the reliance on synthetic pesticides in order to limit exposure to the general public, including children and pets. I propose that the City investigate the use of organic herbicides and update its current Integrated Pest Management Policy and Implementation Guidelines. As a first step in considering this update, I propose a pilot program in Central Park West using organic pesticides. The pilot program would utilize the following prioritization order when pesticides are needed: (1) Use of organic pesticides; (2) Water Quality Act Allowed Pesticides; and (3) EPA Level III “caution” labeled pesticides only when deemed necessary to protect public health and economic impact by a licensed pest- control advisor. Implimenting this program would provide the opportunity to evaluate the effectiveness and assist in identifying potential unintended consequences. This program would evaluate the use and effectiveness to develop a program for consideration for all City landscaping. RECOMMENDED ACTION: Direct Public Works to perform an organic pesticide pilot project in Central Park West for a one year duration. Provide updates to the City Council in six months and one year, with recommendations for updating the Integrated Pest management Program utilizing the results of the pilot project. Cc: Fred A. Wilson, City Manager Ken Domer, Assistant City Manager Robin Estanislau, City Clerk Michael Gates, City Attorney Travis Hopkins, Director of Publilc Works HB -155-Item 9. - 1 Esparza, Patty From: Sent: To: Subject: Surf City Pipeline [noreply@user.govoutreach.com ] Wednesday, April 26, 2017 1:30 PM CITY COUNCIL; Agenda Alerts Surf City Pipeline: Comment on an Agenda Item (notification) Request # 29612 from the Government Outreach System has been assigned to Agenda Alerts. Request type: Comment Request area: City Council - Agenda & Public Hearing Comments Citizen name: Richardson Gray Description: I am writing to voice my SUPPORT for Billy O'Connell's item on the May 1st Council agenda, to formally initiate a non-toxic Integrated Pest Management pilot program at Central Park West. Thank you for considering my views. Expected Close Date: April 27, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. 1 HB -156-Item 9. - 2 Esparza, Patty From: Sent: To: Subject: Surf City Pipeline rnoreply@user.govoutreach.com ] Wednesday, April 26, 2017 2:21 PM CITY COUNCIL; Agenda Alerts Surf City Pipeline: Comment on an Agenda Item (notification) Request # 29613 from the Government Outreach System has been assigned to Agenda Alerts. Request type: Comment Request area: City Council - Agenda & Public Hearing Comments Citizen name: Dan Jamieson Description: April 26, 2017 Dear City Council Member: We want to voice our support for the Non-Toxic HB item that the Council is voting on at its May 1, 2017 meeting. We are unable to be at the meeting, otherwise we would attend and speak out in support of this worthwhile measure. The item would begin a pilot program for an integrated pest management (IPM) system to be used on part of Central Park. IPM programs are state-of-the art solutions for managing pests in home gardens, commercial agriculture and increasingly, in public parks. Because of the active use of public parks by residents, minimizing or eliminating the use of toxic chemicals is highly desired. Toxins also kill many beneficial organisms and insects, and can have harmful effects on pets and wildlife. Generally, 1PM programs are also cheaper over the long run. Again, we fully support this pilot program, and commend Council Member O'Connell for his efforts in placing the item on the Council agenda. Sincerely Dan Jamieson Roxanne McMillen 14341 Spa Drive Huntington Beach, CA Expected Close Date: April 27, 2017 Click here to access the request Note: This message is for notification purposes only. Please do not reply to this email. Email replies are not monitored and will be ignored. 1 HB -157-Item 9. - 3