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Home My WebLink About2018-02-05 Agenda Packet FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, February 05, 2018 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 MIKE POSEY Mayor ERIK PETERSON PATRICK BRENDEN Mayor Pro Tem Councilmember BARBARA DELGLEIZE JILL HARDY Councilmember Councilmember WILLIAM O’CONNELL 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, and Parking Authority 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 Friday prior and updated again on the day of the City Council meeting. The Brown (Open Meetings) Act requires that copies of Supplemental Communication be made available to the public immediately upon distribution of material to a majority of the City Council. Communication received by any individual at the meeting will be made available to the public in the City Clerk’s Office the following morning. AWARDS AND PRESENTATIONS Awards, presentations, and proclamations made by the Mayor on behalf of the City. The Public Information Office coordinates the arrangements with the Mayor and submits a list of presentations through the City Manager’s Office. PUBLIC COMMENTS This is the time of the meeting for the City Council to receive comments from the public regarding items of interest or agenda items not scheduled for Public Hearing. Pursuant to the Brown (Open Meetings) Act, the City Council may not enter into discussion regarding items not on the City Council agenda. Members of the public who wish to speak to a member of the 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- 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, February 05, 2018 FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, February 05, 2018 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 MIKE POSEY Mayor ERIK PETERSON PATRICK BRENDEN Mayor Pro Tem Councilmember BARBARA DELGLEIZE JILL HARDY Councilmember Councilmember WILLIAM O’CONNELL LYN SEMETA Councilmember Councilmember 4:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) STUDY SESSION 1. Joint Study Session between the City Council of Huntington Beach and the Investment Advisory Board (IAB). The Investment Advisory Board and City Treasurer will make a presentation of the FY16-17 annual report, as it relates to the City of Huntington Beach’s investment management. Roll Call of the Investment Advisory Board: Rob Sternberg, Jennifer Handy, Scott Dowds, John Piekarski, Lydia Dupont, A.J. DiLiberto and Mark Ellett 2. Crime Rate Presentation RECESS TO CLOSED SESSION Mayor Posey to Announce: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated HB -3- -2- City Council/PFA Agenda – Monday, February 05, 2018 labor negotiator, City Manager Fred Wilson, who will be participating in today's Closed Session discussions regarding labor negotiations with: Huntington Beach Police Officers' Association (POA), Police Management Association (PMA), Municipal Employees' Association (MEA) and Management Employees' Organization (MEO), and Surf City Lifeguard Employees' Association (SCLEA). CLOSED SESSION 3. 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). 4. 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 Police Officers’ Association (POA), Police Management Association (PMA), Municipal Employees’ Association (MEA), Management Employees’ Organization (MEO), and Surf City Lifeguard Employees’ Association (SCLEA). 5. 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: John Briscoe v. City of Huntington Beach, Robin Estanislau, Orange County Superior Court Case No. 30-2017-00896258, Court of Appeal Case No. G055788. 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden PLEDGE OF ALLEGIANCE INVOCATION - Maria Khani of the Islamic Society of Orange County 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 AWARDS AND PRESENTATIONS Mayor Posey to present commendation to Ed Laird of Laird Coatings for celebrating more than 40 years of business in Huntington Beach HB -4- -3- City Council/PFA Agenda – Monday, February 05, 2018 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 CITY TREASURER'S REPORT 1. Receive and file the City Treasurer's December 2017 Quarterly Investment Summary Report Recommended Action: Receive and file the City Treasurer’s Quarterly Investment Report for December 2017, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. CITY ATTORNEY'S REPORT 2. City of Huntington Beach v. Pharmaceutical Companies – Filing an action against the drug manufacturers of various forms of prescription opioids, which are consumed on a mass scale in Huntington Beach, to recover the City’s increased costs of providing emergency services for drug overdoses and other opioid related health and safety concerns CONSENT CALENDAR 3. Approve and adopt minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes, and special meeting minutes of the Housing Authority, Parking Authority and Successor Agency dated January 16, 2018, as written and on file in the Office of the City Clerk. 4. Approve and accept a donation from The Friends of the Huntington Beach Public Library (FOTL) in the amount of $138,500 for the purchase of books, eBooks and other library resources Recommended Action: Approve and accept the donation from the Friends of the Huntington Beach Public Library, allocating $138,500 to Adult Donations account 10350102.64455. 5. Accept and appropriate funds from the State of California Natural Resources Agency Department of Parks and Recreation for the Central HB -5- -4- City Council/PFA Agenda – Monday, February 05, 2018 Park Trail Rehabilitation; and, authorize execution of a Deed Restriction Recommended Action: A) Authorize the City Manager or his designee to accept grant funds from the California Natural Resources Agency Department of Parks and Recreation; and, B) Accept and appropriate $35,000 from the State of California, and appropriate an additional $35,000 in the Parks Acquisition and Development Fund to meet the local match requirement; and, C) Approve and authorize the Mayor and City Manager to execute a Deed Restriction on a portion of the Central Park Trail. 6. Adopt Resolution No. 2018-06 approving the Fiscal Year 2018/2019 Investment Policy Recommended Action: Adopt Resolution No. 2018-06, "A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy 2018." 7. Approve and authorize execution of a Memorandum of Understanding (MOU) between the City of Huntington Beach and Project Self-Sufficiency (PS-S) Recommended Action: Approve and authorize the Mayor and City Clerk to execute a “Memorandum of Understanding Between the City of Huntington Beach and Project Self- Sufficiency.” 8. Approve the appointment of Marie Knight to the position of Director of Community Services and authorize the City Manager to execute the Employment Agreement Recommended Action: Approve and authorize the City Manager to execute the “Employment Agreement Between the City of Huntington Beach and Marie Knight” for the position of Director of Community Services. 9. Adopt Ordinance No. 4147 amending Section 7.04.010 and repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code (HBMC) relating to the adoption of County Animal Control Ordinances Approved for introduction 1-16-2018, Vote: 7-0 Recommended Action: Adopt Ordinance No. 4147, "An Ordinance of the City of Huntington Beach Amending Section 7.04.010 and Repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code Relating to the Adoption of County HB -6- -5- City Council/PFA Agenda – Monday, February 05, 2018 Animal Control Ordinances." PUBLIC HEARING 10. Adopt Resolution No. 2018-03 adopting Amendments to the 2015 Urban Water Management Plan (UWMP) Recommended Action: Adopt Resolution 2018-03, “A Resolution of the City Council of the City of Huntington Beach Adopting the Amendments to the Adopted 2015 Urban Water Management Plan Pursuant to AB797 and SB1011.” COUNCILMEMBER ITEMS 11. Submitted by Councilmember Brenden - Short-Term Vacation Rental (STVR) Ordinance Recommended Action: Direct the City Manager and City Attorney to return to Council, within 90 days, a draft ordinance to allow hosted short-term vacation rentals as an accessory use in single and multiple-family residential zones with the following regulatory framework: • A hosted short-term vacation rental (STVR) should be defined as the rental, for a period of less than 30 days, of either (A) one or more bedroom(s) or (B) an attached/detached casita or accessory dwelling unit with up to two living units, on a property that is the owner’s primary residence, where the owner is resident during the entire rental stay. • All STVRs would require a permit and business license to operate. •Owner/operator will include city-issued permit number on all online listings. •The STVR permit would require compliance with the following operating agreements: A permit fee shall be established in an amount to be determined by resolution of the City Council. The permit shall be limited to the property owner’s primary residence and one additional on-site dwelling unit. Registration for a Transient Occupancy Tax (TOT) Certificate and collection and remittance of the TOT shall be required, consistent with current City regulations. Occupancy limits of two (2) persons per bedroom plus two (2) per dwelling unit. HB -7- -6- City Council/PFA Agenda – Monday, February 05, 2018 The number of vehicles for overnight occupants shall not exceed the number of designated on-site parking spaces on the property. The short-term rental property shall not be used for any use or event that would require a local event or temporary event permit, or other regulatory permission. The host/operator shall post in a conspicuous location “house rules” or a “good neighbor code of conduct” that includes reference to local regulations related to noise, nuisance, and trash. The owner/operator will self-certify that they comply with all local, state, and federal health and safety requirements, including those related to fire extinguishers, smoke detectors, and CO2 detectors. The owner/operator must provide a designated 24-7 local contact. The 24-7 local contact must respond to any complaint related to the short-term occupancy of the property within 1 hour. • Where the property is part of any Homeowners Association (HOA), a short- term rental permit shall not be issued without written authorization from that HOA. • Where short-term rentals are prohibited by Covenants, Conditions, and Restrictions (CC&R). • Escalating penalties shall be established for verified violations. • A process for permit revocation shall be incorporated. • A process to appeal violations shall be established. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT A Town Hall Meeting regarding a Housing Update has been scheduled for 9:00am, Saturday, February 10, 2018 in Council Chambers, 2000 Main Street, Huntington Beach, CA A Strategic Planning Session has been scheduled for 8:00am, Tuesday, February 13, 2018 at Huntington Central Library, 7111 Talbert Avenue, Huntington Beach, CA HB -8- -7- City Council/PFA Agenda – Monday, February 05, 2018 The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, February 20, 2018, 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 -9- CITY OF HUNTINGTON BEACH INVESTMENT ADVISORY BOARD ANNUAL REPORT TO THE CITY COUNCIL FOR THE PERIOD: OCTOBER 1, 2016 TO SEPTEMBER 30, 2017 HB -10-Item 1. - 1 INVESTMENT ADVISORY BOARD (IAB) Establishment of Board The Investment Advisory Board was created to act in an advisory capacity to the City Council and City Treasurer in matters pertaining to all of the City’s investments by the City Council in May of 1995, by Resolution #3284. The Board is governed by the City’s municipal code chapter 2.110. Board Membership The Investment Advisory Board shall consist of up to seven members. Each City Council member may appoint one member of the board to serve the same term as the City Councilmember. For the Fiscal Year 2016-17, members were as follows: Name Council Member Rob Sternberg Patrick Brendan Lydia Dupont Billy O’Connell Scott Dowds Barbara Delgleize Jennifer Handy Jill Hardy John Piekarski Mike Posey A.J. DiLiberto (appointed 1/17/2017) Lyn Semeta Mark Ellett (appointed 4/3/2017) Erik Peterson Board Duties The duties of the IAB as defined in the municipal code include: 1) Preparation of an annual report to be submitted to the City Council 2) Review and recommendations regarding: - The City’s Investment Policy Statement - Investment strategies and opportunities - Relevant governmental legislation - Quarterly investment reporting and compliance 3) Quarterly meetings Board and City Treasurer Activities The meetings of the Board for the 2016-17 fiscal year ending September 30, 2017 were open to the public, as required by Government Co de 54950, and were held on the following dates in City Hall: October 20, 2016 January 19, 2017 April 20, 2017 July 20, 2017 The Annual Study Session was held on February 6, 2017. HB -11-Item 1. - 2 The City Treasurer attended the LAIF conference in Sacramento in October of 2016, the California Municipal Treasurer’s Annual Conference in April of 2017, and the Huntington Beach Chamber of Commerce 30th Annual Economic Conference in April of 2017. The two major activities of the Board consisted of reviewing each quarterly investment report and reviewing the City of Huntington Beach Investment Policy annually, prior to their presentation at a City Council meeting. As required under Huntington Beach Municipal Code 2.110.040(b), for the 2016/17 fiscal year, the Investment Advisory Board reviewed matters pertaining to the City’s investments in the following areas:  Reviewed the annual Investment Policy Statement and recommended modifications.  Discussed cash management and ensured sufficient liquidity to meet the next six months’ estimated expenditures.  Reviewed risk-return analysis as it relates to safety, liquidity and yield.  Participated in presentation of the City’s Supplemental Retirement Pension investments by City’s benefits consultant.  Reviewed appropriate state and federal legislation as it may impact the City’s investments, including updates to the California Government Code Section 53601.  Reviewed any anticipated exposure to loss through the analysis of liquidity, credit & market value of investments.  Reviewed quarterly reports prior to presentation to the City Council.  Reviewed quarterly compliance with Investment Policy. No exceptions were identified. Based on the information reviewed by the Investment Advisory Board for the period October 1, 2016 to September 30, 2017, the Board acknowledges that the City Treasurer has maintained compliance with all requirements in the City’s Investment Policy and related governmental regulations, and has managed the City’s investment portfolio in a prudent and suitable manner. HB -12-Item 1. - 3 February 5, 2018 Alisa Cutchen, CCMT, CPFIM City TreasurerHB -13-Item 1. - 4 City of Huntington Beach Investment Advisory Board Governed by Chapter 2.110 of Municipal Code Acts in an advisory capacity to City Council and Acts in an advisory capacity to City Council and City Treasurer in matters pertaining to the City’s investments Each City Council member appoints one member to serve concurrent termHB -14-Item 1. - 5 Investment Advisory Board Members: Rob Sternberg - - Appointed by Patrick Brendan Jennifer Handy - - Appointed by Jill Hardy Scott Dowds --Appointed by Barbara DelgleizeScott Dowds --Appointed by Barbara Delgleize John Piekarski - - Appointed by Mike Posey Lydia Dupont - - Appointed by Billy O’Connell A.J. DiLiberto - - Appointed by Lyn Semeta Mark Ellett - - Appointed by Erik PetersonHB -15-Item 1. - 6 Investment Advisory Board Meetings: •Meetings are held quarterly. For FY16/17: •October 19, 2016 •January 18, 2017 ••April 19, 2017 •July 19, 2017 •Open to the public per the Brown Act •Annual Study Session HB -16-Item 1. - 7 FY 2016/2017 Annual Report: Reviewed quarterly investment reports prior to presentation to City Council Reviewed and updated City’s Investment Policy. Recommended additional investments as Recommended additional investments as allowable per CA state code + maximum investment amounts and percentages Reviewed / discussed City’s other investments including Supplemental Retirement Plan, Section 115 TrustHB -17-Item 1. - 8 FY 2016/2017 Annual Report: Confirmed liquidity availability / discussed short- term investment options including LAIF Presentation by Benefit Financial Services Group as consultant for City’s Supplemental Group as consultant for City’s Supplemental Retirement and Deferred Compensation Plans Discussed current events, economic/ market conditions, governmental regulations Reviewed compliance – No exceptions identifiedHB -18-Item 1. - 9 Portfolio summary at FYE 9/30/17: Book Value: $196.9 million Portfolio Composition: 75% Federal Agencies, 19% Corporate Bonds, 3% LAIF, IBRD 3%IBRD 3% Annual Earnings: $2.75 million +20% increase over previous fiscal year Fiscal Year Effective Rate of Return: 1.30% Versus 9/30/17 Benchmark: 1.21% (12-mo. moving avg. 2 Year CMT)HB -19-Item 1. - 10 Investment Advisory Board Conclusions: City Treasurer has managed City funds as a fiduciary with adherence to governmental regulations, andregulations, and Maintained and followed Investment Policy Statement guidelines and criteria: Safety Liquidity Market Rate of ReturnHB -20-Item 1. - 11 HB -21-Item 2. - 1 HB -22-Item 2. - 2 Dept. ID CT 18-001 Page 1 of 1 Meeting Date: 2/5/2018 Statement of Issue: Receive and file the City Treasurer’s Quarterly Investment Report for December 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 December 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 December 2017 2. Treasurer’s PowerPoint Presentation for December 2017 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 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 December 2017 Quarterly Investment Summary Report HB -23-Item 1. - 1 HB -24-Item 1. - 2 HB -25-Item 1. - 3 HB -26-Item 1. - 4 HB -27-Item 1. - 5 HB -28-Item 1. - 6 HB -29-Item 1. - 7 HB -30-Item 1. - 8 HB -31-Item 1. - 9 HB -32-Item 1. - 10 HB -33-Item 1. - 11 HB -34-Item 1. - 12 HB -35-Item 1. - 13 HB -36-Item 1. - 14 HB -37-Item 1. - 15 HB -38-Item 1. - 16 HB -39-Item 1. - 17 HB -40-Item 1. - 18 HB -41-Item 1. - 19 HB -42-Item 1. - 20 HB -43-Item 1. - 21 HB -44-Item 1. - 22 HB -45-Item 1. - 23 HB -46-Item 1. - 24 HB -47-Item 1. - 25 HB -48-Item 1. - 26 HB -49-Item 1. - 27 HB -50-Item 1. - 28 HB -51-Item 1. - 29 HB -52-Item 1. - 30 HB -53-Item 1. - 31 HB -54-Item 1. - 32 HB -55-Item 1. - 33 HB -56-Item 1. - 34 HB -57-Item 1. - 35 HB -58-Item 1. - 36 HB -59-Item 1. - 37 City of Huntington Beach Quarterly Treasurer’s Report Quarter Ending: December 31, 2017 Prepared by: Alisa Cutchen, CCMT, CPFIM, City Treasurer HB -60-Item 1. - 38 Market Overview - At 12/31/17 Economic Indicators •PCE 1.3% •Unemployment rate 4.2% •Labor Participation rate 63.1% •Federal Funds Rate: 1.00-1.25% Debt/Equity Markets % QTRLY CHANGE •S&P 500: 2,519.36 +4.0% •DOW: 22,405.09 +4.9% •10 YR Treasury: 2.33% +0.9% HB -61-Item 1. - 39 Overview of City Investments Pooled Cash Portfolio •City’s cash resources available to fund Governance •CA Government Other Investments •Supplemental Retiree HB -62-Item 1. - 40 Portfolio Summary As of 9/30/17 Investment Type / Market Value: •Federal Agencies - $147.3MM •Corporate Bonds - $36.7MM •LAIF - $6.6MM •IBRD - $5.0MM TOTAL PORTFOLIO: $195.6MM HB -63-Item 1. - 41 Investments by Type As of September 30, 2017 HB -64-Item 1. - 42 Monthly Earnings - October 2016 to September 2017 $ in thousands HB -65-Item 1. - 43 Portfolio Earnings - As of September 30, 2017 Current Year - Month September, 2017: $234,585 vs. last year: $196,054 Current Year - Fiscal YTD Through 9/30/17: $2,752,839 vs. last year: $2,300,386 Effective Rate of Return September, 2017: 1.42% *Benchmark: 1.21% Fiscal YTD: 1.30% *12mo. moving avg. 2YR CMT Total Earnings Fiscal Year 2016-17 $2,752,839 to be utilized for City operations Offset taxpayer $ HB -66-Item 1. - 44 Compliance The portfolio is in compliance with all relevant State regulations and the City’s Investment Policy Selected Investment Policy Requirements: Investment Type Max. Maturity Max. % of Portfolio Ratings Federal Agencies 5 yrs none AAA/Aa IBRD 5 yrs 10% AAA/Aaa Corporate Bonds 5 yrs 30% A or above LAIF n/a $65MM per n/a account HB -67-Item 1. - 45 Minutes City Council/Public Financing Authority and Special Meeting of the Housing Authority, Parking Authority, and Successor Agency City of Huntington Beach Tuesday, January 16, 2018 4:00 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 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 Due to late cancellation of Study Session Item No. 1 - Crime Rate Presentation, the meeting was adjourned to 5:00 PM. CALLED TO ORDER — 5:02 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) — None PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS — None RECESSED TO CLOSED SESSION — 5:03 PM A motion was made by O’Connell, second Semeta to recess to Closed Session for Items 2 – 5. With no objections, the motion carried. Mayor Posey Announced: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator, City Manager Fred Wilson, who will be participating in today’s Closed Session discussions regarding labor negotiations with: Huntington Beach Police Officers’ Association (POA), Police Management Association (PMA), Municipal Employees’ Association (MEA) and Management Employees’ Organization (MEO). CLOSED SESSION 2. Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Huntington Beach Police Officers’ Association (POA), Police Management Association (PMA), Municipal Employees’ Association (MEA) and Management Employees’ Organization (MEO). HB -68-Item 3. - 1 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 2 of 14 3. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Greg Lopez v. City of Huntington Beach, Workers’ Compensation Appeals Board Case Nos. ADJ10638499; ADJ10406576, Claim Nos. COHB-15-0328; COHB-16-0072. 4. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Keanu Hatcher, a minor by and through guardian ad litem, Valerie Hatcher v. City of Huntington Beach, et al., Orange County Superior Court Case No. 30-2017-00933396. 5. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Eugene Decock, Sandra Decock v. City of Huntington Beach, Orange County Superior Court Case No. Case No. 30-2017-00956312. 6:00 PM – COUNCIL CHAMBERS RECONVENED THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALLED TO ORDER THE SPECIAL MEETINGS OF THE HUNTINGTON BEACH HOUSING AUTHORITY, PARKING AUTHORITY, AND THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH — 6:04 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None PLEDGE OF ALLEGIANCE — Led by Mayor Pro Tem Peterson INVOCATION — Deacon Joe Sullivan of St Bonaventure 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 Posey called on Victoria Alberty to present the Adoptable Pet of the Month. Victoria introduced Karen of Top Dog Barkery who provided details on Riley, a 4-year old mix who was abandoned with a broken leg, which had to be amputated. Riley gets along with cats, bunnies, horses, and loves everyone. Top Dog Barkery and Waggin’ Trails Rescue Foundation can always use donations and volunteers, and more information is available at www.waggintrails.org or www.topdogbarkery.net. Mayor Posey presented a commendation to local resident and photographer Terry Cirac for donating countless hours of time and talent to city events. Mayor Posey thanked Janeen Johnson for suggesting that Terry be acknowledged. Dan Page with Aerospace Education Foundation of HB -69-Item 3. - 2 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 3 of 14 Huntington Beach, as well as Councilmember Delgleize, also thanked Terry for using his talents to benefit Huntington Beach. Mayor Posey called on Human Resources Director Michele Warren to present the Mayor’s Award to Principal Personnel Analyst Joann Diaz. Director Warren introduced Analyst Joann Diaz who has been with the City for about nine years. Prior to Joann’s City employment, she spent approximately 30 years with the Metropolitan Transportation Authority (MTA). She creates job descriptions for new positions, and is responsible for labor relations, classification and compensation, investigations, disciplinary support and oversight of the City's random drug testing program. In addition to holding a Bachelor’s and Master’s Degree, Joann is a Senior Certified Professional with the International Public Management Association for Human Relations. She is a charitable and generous person who recently joined Dream Catchers, an auxiliary of the Huntington Beach Assistance League. A long-time Huntington Beach resident, Ms. Diaz loves working for the City. 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 Agenda Item No. 1, Council Committee – Appointments – Liaison Reports, AB 1234 Reporting, and Openness in Negotiations Disclosures, an Interoffice Memo Communication regarding the submission of additional Board and Committees: Huntington Beach Downtown Business Improvement District (BID) Board; Coastal Area Orders Committee (Ad Hoc); and Homeless Task Force (Ad Hoc), received from Mayor Posey. PUBLIC COMMENTS (3 Minute Time Limit) — 18 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. Rocky McKinnon, local Pro surfer, instructor, board shaper and participant in Guinness World Records for Big Board Ride and Circle of Honor, was called to speak and announced a new Bold As Love Outrigger Surf Canoe Program. This program will be a free event two times a month, held during the week. Further details are available on social media (Instagram, Twitter and Facebook). He thanked Brett Barnes and Dukes for being a sponsor, and invited people to join the fun. (00:18:10) Richardson Gray, a Huntington Beach homeowner for 15 years, was called to speak and stated his opposition to Councilmember Item No. 15 regarding alcohol sales in open space, unless approval is restricted to only Central Park. (00:20:50) Nora McGinnis, a resident of the Seabridge neighborhood at Adams and Beach, was called to speak and stated her concerns about the increased aggressive coyote activity in their community, and asked for direction on how to control the situation before it gets worse. Mayor Posey asked her to complete a blue card for staff follow-up. (00:23:13) Kelly McGinnis, a resident of the Seabridge neighborhood at Adams and Beach, was called to speak and stated his concerns about the increased aggressive coyote activity in the past three months in their community, and asked for direction on how to control the situation before it gets worse. (00:25:11) HB -70-Item 3. - 3 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 4 of 14 Terry Rose, a resident of the Seabridge neighborhood at Adams and Beach, was called to speak and stated his concerns about the increased aggressive coyote activity in the community since the recent park fire, and asked for direction on how to control the situation before it gets worse. (00:26:09) Patia Modia, a resident of the Seabridge neighborhood at Adams and Beach, was called to speak and stated her concerns about the aggressive coyote activity in their community, and asked for direction on how to control the situation before it gets worse. (00:27:31) Stephanie Vail, Huntington Beach resident with two preschoolers, was called to speak and stated her concerns about the condition of playgrounds in local parks with old, dirty, outdated or missing equipment, excessive litter and trash, including drug paraphernalia, in the bushes, sand, on sidewalks and benches. She shared pictures taken at a number of parks to document her concerns. Mayor Posey asked Ms. Vail to complete a blue card for staff follow-up. (00:28:18) Bob and Connie Betz were called to speak and stated their support for Councilmember Item No. 14. regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. (00:32:01) James D. Baker was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. (00:33:29) Mike Wirthlin, a 44 year resident of Huntington Beach, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. (00:36:42) Mario Tabernig, a retired Air Force pilot, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport, and stated his interest in being part of the W orking Group. (00:39:00) Bryon Adamo, Huntington Beach resident, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport, and stated his interest in being part of the Working Group. (00:41:00) Chris Christie, a 40+ year resident of Huntington Beach, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. Mayor Posey suggested that anyone interested in being a part of the Working Group complete a blue card and hand it to the Sergeant of Arms. (00:42:19) Lloyd Sargent, a 17-year resident of Huntington Beach, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise. He recommended using the phone app, Plane Finder, which provides real time details such as elevation and flight number to accurately document the incidents. (00:43:20) HB -71-Item 3. - 4 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 5 of 14 Dr. Rene Polk Johnson, Citizens Against Airport Noise and Pollution (CAANP), was called to speak and stated her support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. She provided statistics related to some health effects of airport noise and pollution. Mayor Posey invited Dr. Johnson to complete a blue card for follow-up. (00:46:32) Richard Plummer, a resident of Downtown Huntington Beach, was called to speak and stated his support for Councilmember Item No. 14 regarding an Air Traffic Noise Working Group to address concerns related to increased airplane noise from Long Beach Airport. Regarding Councilmember Item No. 15, related to alcohol sales in open space parks, he required more details and specifics, especially since Downtown already has the highest concentration of alcohol serving establishments in the whole state. Mayor Posey clarified that the Agenda Items are abbreviated descriptions of the topic and there are additional descriptions and details in the supporting documents. (00:49:55) John Christiana, a resident of Laguna Beach, was called to speak and stated that Huntington Beach is not on the list of "50 Safest Cities in California for 2017," nor is Huntington Beach on the list of "128 Safest Places to Live in California." He also discussed his perception of conspiracy within the Police Department, and his concerns related to the medical care his father received while hospitalized in Huntington Beach. (00:53:48) Shawn Thompson, a resident of Huntington Beach for 20 years, was called to speak and expressed her dismay that the old tree in front of her residence was, in her opinion, unnecessarily removed. She also asked that the City work with an urban forester to create a city-wide long-term tree plan, similar to what Irvine has done. (00:57:04) COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Hardy reported meeting with the Huntington Beach Police Management Association (HBPMA). Councilmember Brenden reported attending a Public Cable Television Authority (PCTA) Board meeting where Councilmember Semeta was elected as Vice Chair, an Oak View Task Force meeting, meeting with two representatives of the HBPMA, attending a Downtown BID meeting, the Huntington Beach Chamber of Commerce AM Connect event where he provided a City Update, and meeting with representatives of the Huntington Beach Police Officers' Association (HBPOA). Councilmember Semeta reported meeting with members of the HBPMA, a PCTA Board meeting where she was elected Vice Chair, and an Orange County Taxpayers Association presentation on The Cost of Public Safety in Orange County. Councilmember O'Connell reported meeting with members of the HBPMA, the HBPOA, and attending a Kiwanis meeting in memory of Bob Gibbons. He asked that this City Council meeting be adjourned in memory of Mr. Gibbons to acknowledge his service to the community. HB -72-Item 3. - 5 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 6 of 14 Councilmember Delgleize reported attending an Orange County Transportation Authority (OCTA) Board meeting, an Orange County Taxpayers Association presentation on The Cost of Public Safety in Orange County, and a meeting with HBPMA members. Mayor Posey reported meeting with HBPMA, HBPOA and Huntington Beach Firefighters' Association (HBFA) members, attending the Orange County Taxpayers Association presentation on The Cost of Public Safety in Orange County, and the Huntington Beach Chamber of Commerce AM Connect event. 1. Approved City Council Boards and Commissions’ Liaison Appointments (City Council, Public Finance Authority, Housing Authority, Parking Authority and Successor Agency Recommended Action) A motion was made by Peterson, second Semeta to approve the Boards and Commissions Appointments List as amended by Supplemental Communication to add Huntington Beach Downtown Business Improvement District (BID) Board, Coastal Area Odors Commission (Ad Hoc), and Homeless Task Force (Ad Hoc). (The City Clerk certifies that FPPC Form 806 "Agency Report of Public Official Appointments" which is used to report additional compensation that officials receive when appointing themselves to positions on committees, boards or commissions of a public agency, special district and joint powers agency or authority was posted to the City's website according to law prior to this vote.) The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None CITY MANAGER’S REPORT City Manager Wilson provided an update of Public Works projects, including construction of parking lots at the corner of Orange and 1st Downtown and Huntington Central Park, and the rehabilitation of Heil Avenue. CITY ATTORNEY’S REPORT 2. An update was provided on John Briscoe v. City of Huntington Beach – City has filed an appeal with the California Court of Appeal, Fourth District, Division 3, Court File No. G055788. This appeal is responding to the November 2017 Superior Court decision regarding disclosure of personnel materials from an employee’s records in response to a public records request. 3. An update was provided on City of Huntington Beach v. Pharmaceutical Companies – In response to a 7-0 vote of Council, filing an action against the drug manufacturers of various forms of prescription opioids, which are consumed on a mass scale in Huntington Beach, to recover the City’s costs for increased calls to provide emergency services for drug overdoses and other opioid related health and safety concerns. Another report will be provided when the filing has been completed. HB -73-Item 3. - 6 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 7 of 14 CONSENT CALENDAR Mayor Pro Tem Peterson pulled Item No. 6 for further discussion. 4. Approved and adopted minutes A motion was made by Hardy, second Delgleize to approve and adopt the City Council/Public Financing Authority regular meeting minutes and special meeting of the Successor Agency dated December 18, 2017, as written and on file in the Office of the City Clerk. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 5. Presented the Annual Review of the City Code of Ethics A motion was made by Hardy, second Delgleize to direct the City Clerk to record in the official minutes that the Code of Ethics was presented to the City Council, the City Manager, Chairpersons, and City Department Directors for their review and distribution as required by Resolution No. 2016-73. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 6. Received and Filed the Notification of the City Council Strategic Planning Session to be held on February 13, 2018 Mayor Pro Tem Peterson pulled this item to state that in his opinion this important and necessary process does not allow for adequate public input and transparency. He would like to see any project or goal that requires extensive staff time and/or funds be brought back to Council for direction, approval and public input before staff makes a presentation to Council with their recommendations. Councilmember Semeta voiced her support for strategic planning; however, in her opinion the process should include an opportunity for all Councilmembers to weigh in on any item before it becomes a goal or part of the strategic plan. A motion was made by Peterson, second O’Connell to receive and file the Notification of the City Council's Strategic Planning Session scheduled for February 13, 2018. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 7. Adopted Resolution No. 2018-07 amending the City’s Classification Plan by adding the Classification of Business License Supervisor HB -74-Item 3. - 7 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 8 of 14 A motion was made by Hardy, second Delgleize to adopt Resolution No. 2018-07, "A Resolution of the City Council of the City of Huntington Beach Amending the City’s Classification Plan by Adding the Classification of Business License Supervisor." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 8. Adopted Successor Agency Resolutions Nos. 2018-01 and 2018-02 approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Huntington Beach Successor Agency for the period of July 1, 2018, through June 30, 2019, in accordance with Health and Safety Code Section 34177 and related actions A motion was made by Hardy, second Delgleize to adopt Resolution No. 2018-01, "A Resolution of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Approving the Successor Agency Administrative Budget for the Period July 1, 2018, through June 30, 2019;" and, adopt Resolution No. 2018-02, "A Resolution of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Approving the Recognized Obligation Payment Schedule for the Period July 1, 2018 - June 30, 2019 (‘ROPS 18-19’)." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 9. Approved and authorized Density Bonus and Affordable Housing Agreements with MLC Holdings, Inc., (Inclusionary/Density Bonus) for 19100 Gothard Street and 19200 Holly Lane development A motion was made by Hardy, second Delgleize to approve as to form the Density Bonus Agreement for 19100 Gothard Street (Tentative Tract Map No. 18106; Conditional Use Permit No. 17-010) and authorize the Mayor/Chairperson to sign the Agreement, subject to the City Attorney/Authority Counsel confirming that MLC Holding, Inc., has acquired clear title for the property from Gothard Street, LLC, a California limited liability company; and, approve as to form the Density Bonus Agreement for 19200 Holly Lane (Tentative Tract Map No. 18105; Conditional Use Permit No. 17-011), and authorize the Mayor/Chairperson to sign the Agreement, subject to the City Attorney/Authority Counsel confirming that MLC Holding, Inc., has acquired clear title for the property from 19200 Holly Street, LLC, a California limited liability company. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 10. Approved and authorized execution of three contracts with N. Harris Computer Corporation for replacement of the City’s Cashiering System and Software License, in the amount of $491,020 and approve first year of maintenance and support for $38,800 HB -75-Item 3. - 8 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 9 of 14 A motion was made by Hardy, second Delgleize to approve and authorize the Mayor and City Clerk to execute "Software Implementation Services Agreement," "Support and Maintenance Agreement," and "Software License Agreement" with N. Harris Computer Corporation for replacement of the City’s Cashiering System and Software License, in the amount of $491,020 and approve the first year of maintenance and support for $38,800. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 11. Adopted Ordinance No. 4143 amending Huntington Beach Municipal Code (HBMC) Chapter 1.13 to change the fiscal year for the City to a July 1 to June 30 period Approved for introduction December 18, 2017 — Approved 7-0 A motion was made by Hardy, second Delgleize to adopt Ordinance No. 4143, "An Ordinance of the City Council of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Amending Chapter 1.13 to Change the Fiscal Year for the City" to a July 1 to June 30 period. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None PUBLIC HEARING 12. Adopted Resolution No. 2018-01 amending Resolution No. 2016-59 which established a Comprehensive City Wide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 4) enhancing the Junior Lifeguard Program Fire Chief Segura presented a PowerPoint communication entitled City of Huntington Beach, January 16, 2018, Resolution for Junior Lifeguard Program Enhancements which included the following slides: Program Description, Overview, Program Need Identified, and Staff Recommendation. Marine Safety Chief Mike Baumgartner was also available to answer Council questions. (01:10:42) Councilmember Hardy and staff discussed the existing and proposed fees for the different options. The new option for younger children will focus on safety and the environment with limited time in only shallow water. Mayor Pro Tem Peterson and Chief Baumgartner discussed the City's program vs. what the State offers. Councilmember O'Connell and staff discussed that currently the morning program is most popular. Mayor Posey opened the Public Hearing. City Clerk Robin Estanislau announced that no one had signed up to speak. Mayor Posey closed the Public Hearing. HB -76-Item 3. - 9 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 10 of 14 Councilmember Delgleize expressed her appreciation to staff for this outstanding program. A motion was made by O’Connell, second Peterson to adopt Resolution No. 2018-01, "A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 2016-59 Which Established a Comprehensive Citywide Master Fee and Charges Schedule (Supplemental Fee Resolution No. 4)." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None ORDINANCES FOR INTRODUCTION 13. Approved for introduction Ordinance No. 4147 amending Section 7.04.010 and repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code (HBMC) relating to the adoption of County Animal Control Ordinances City Manager Wilson introduced Dr. Jennifer Hopkins, Director of OC Animal Shelter to answer questions. Dr. Hopkins stated that it is important that contract cities have regulations that are in alignment with Orange County codified ordinances, and recent County changes relate to aggressive and barking dogs. A motion was made by Delgleize, second O’Connell to, after the City Clerk reads by title, approve for introduction Ordinance No. 4147, "An Ordinance of the City of Huntington Beach Amending Section 7.04.010 and Repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code Relating to the Adoption of County Animal Control Ordinances." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None COUNCILMEMBER ITEMS 14. Approved Item Submitted by Councilmembers Brenden and Delgleize to Establish the Air Traffic Noise Working Group to pursue objectives regarding concerns of increased airplane noise as amended Councilmember Brenden introduced this item by sharing actions he and Councilmember Delgleize have taken since last summer in response to public concerns. Councilmembers Brenden and Delgleize would like to be the Council liaisons, with up to 10 members of the public, as well as support from staff and subject experts making up this working group. The highlighted key objectives of the working group would include defining and prioritizing remedies, acquiring technical data that supports concerns, establish proper dialogue with appropriate parties in an effort to work collaboratively, implement email and/or letter campaigns if necessary, and evaluate the feasibility of legal action if all else fails. There should be a community meeting to share details, and regular updates available on the City's website. Councilmember Delgleize expressed appreciation for the residents who are persistently speaking out. She understands the frustration at how slow these processes take when so many different entities are HB -77-Item 3. - 10 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 11 of 14 involved, but is encouraged by the number of local resources and experts that are available and willing to be involved. Councilmember O'Connell stated his full support for this effort and anticipation of a successful outcome. Councilmember Brenden asked that "expect project completion within six (6) months" be added to the recommended action. Mayor Pro Tem Peterson provided some background information related to meetings that he and Mayor Posey have scheduled on this topic with Congressman Rohrabacher. Currently the plan is for a working meeting within the next three weeks with FAA representatives, subject experts and a citizen representative from each of the four or five affected neighborhoods to develop a solution that would be signed off by the FAA. Mayor Pro Tem Peterson's opinion is that the proposed Air Traffic Noise Working Group is an excellent next step if there is not a satisfactory result from the upcoming working meeting. Councilmember Semeta stated her support for Mayor Pro Tem Peterson's suggestion that the working group be implemented if necessary after the currently scheduled FAA meeting. A substitute motion was made by Peterson, second by Semeta, to table this item for 30 days and then determine if an Air Traffic Noise Working Group will be necessary, based on the results of the upcoming working meeting already planned with FAA representatives. Councilman Brenden stated his appreciation for Mayor Pro Tem Peterson's comments and is glad to know that the FAA and Congressman Rohrabacher are engaged in the issues. Councilmembers Brenden and Delgleize voiced their opinions that the scheduled upcoming meeting would enhance the efforts of the anticipated working group, but they see no reason for any more delay on this item. Councilmember Hardy expressed her support for the proposed working group to meet before the FAA meeting, and suggested they would then be ready for action if necessary. Otherwise, in her opinion, it would mean an unnecessary further delay. Mayor Posey described the current situation as a result of the Brown Act which guarantees the public's right to attend and participate in the legislative process, and prohibits a gathering of a quorum to discuss or transact business, including serial meetings among Council members. In this case, the benefit is an opportunity to approach the issues from a couple of directions and possibly provide multiple solutions. Mayor Pro Tem Peterson withdrew his substitute motion and agreed with Councilmember Brenden that the proposed working group could select a few informed residents with detailed evidence who could be invited to attend the scheduled FAA meeting. A motion was made by Brenden, second Delgleize to establish the Air Traffic Noise Working Group, to be led by two Councilmembers with support from staff and subject matter experts; to pursue the objectives as defined in the Statement of Issue; with a first meeting to be held on or around January 28th as schedules permit, as amended to expect completion of project within 6 months. The motion carried by the following vote: HB -78-Item 3. - 11 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 12 of 14 AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 15. Approved Item Submitted by Councilmember Brenden regarding Alcohol Sales in Open Space — Park Councilmember Brenden provided some background details and reviewed current codes related to alcohol sales. He stated that his proposal is to ask the City Manager to work with the City Attorney to review current municipal and zoning codes and come back with recommendations for amendments that would allow for beer and wine sales, service and consumption at eating and drinking establishments (bona fide restaurants only, which must provide full table service where outdoor dining space is enclosed) where alcohol is only available with food service. He amended this item by adding that the recommendations be submitted to the Planning Commission for their consideration. Councilmember O'Connell stated his support for this item as he believes it will be beneficial for all involved. Councilmember Hardy asked that the requirements for fencing, specifics for hours of operation, and how employees are trained in serving alcohol all be reviewed in this process. She further stated that the permit should stay with the operator in this case, especially because the City owns the park. Councilmember Delgleize stated her support for this item. Councilmember Semeta asked, and City Attorney Gates confirmed, that it is possible to change codes for specific locations. Mayor Pro Tem Peterson stated that Conditional Use Permits apply to a location, and having alcohol on site might create increased security issues for the location. He stated he has opposed this issue in the past and he will not support it this time. Councilmember Hardy stated her appreciation and agreement with Mayor Pro Tem Peterson's concerns, but her support for this item is to see what the recommendations and restrictions could be when the City owns the land. Councilmember Brenden understands the concerns expressed by fellow Councilmembers, and that is why restrictive language was used in the proposal, which he feels makes this a bit different than past efforts. He also stated this is a unique situation with a lease agreement which the City controls with a proven vendor. Councilmember Hardy suggested that the item exclude any reference to beach area, and Councilmember Delgleize suggested that the recommendation state it is only for Central Park. Mayor Posey expressed his concerns about possibly opening a door for alcohol sales throughout the Park and not be restricted to a specific location, but stated his support for the item since it is only seeking recommendations. A motion was made by O’Connell, second Delgleize direct the City Manager to work with the City Attorney to review the Municipal Code and Zoning Code regarding the ability to permit beer and wine HB -79-Item 3. - 12 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 13 of 14 sales, service and consumption at restaurant establishments within the OS-PR Zone, excluding areas located at the beach, and to draft code modifications that reflect conditions and requirements that apply to alcohol use in public parks. Submit proposed modifications to the Planning Commission for consideration. The motion carried by the following vote: AYES: O’Connell, Posey, Delgleize, Hardy, and Brenden NOES: Semeta, and Peterson COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Brenden reported making a business visit to Cambro Manufacturing, participating in a Kiwanis Snow Day at Sun View Elementary, meeting with consultant Justin Cook regarding FAA issues, attending Surf City Splash, a meeting of the Orange County Sober Living Coalition, participating in a League of California Cities pension webinar, and attending the Orange County Taxpayers event on The Cost of Public Safety in Orange County. Councilmember O'Connell reported attending the Kiwanis Snow Day at Sun View Elementary, and participating in Surf City Splash. Councilmember Hardy reported seeing first-hand how well the Huntington Beach Police and Fire department staffs handle a traffic accident, and that she now has a new car. Mayor Pro Tem Peterson reported attending a congressional overview meeting at Boeing where Boeing confirmed they are planning to sell some of their land and buildings, but are keeping three programs going at the Huntington Beach facility. Councilmember Delgleize congratulated Councilmember O'Connell for actually getting in the water at Surf City Splash. Councilmember Semeta reported participating in a business visit to Zodiac, where she learned that Zodiac a contract in response to the RFP for more secure pilot cabin doors after 9/11. She also reported attending a recent Sister City Association meeting. Mayor Posey reported attending a Sister City Association meeting and expects to be able to make an exciting announcement in another month or two. He shared his 2018 Goals with Rotary Club, attended Mandic Motors mixed use project site presentation at Main Street Library, was the MC for Surf City Splash, and participated in the Cambro Manufacturing and Zodiac business tours. ADJOURNMENT — 8:12 PM, in memory of Kiwanis member Bob Gibbons, to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, February 5, 2018, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. HB -80-Item 3. - 13 Council/PFA Regular Minutes Housing Authority, Parking Authority and Successor Agency Special Minutes January 16, 2018 Page 14 of 14 ______________________________________ 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 -81-Item 3. - 14 Dept. ID LS-1801 Page 1 of 1 Meeting Date: 2/5/2018 Statement of Issue: The Friends of the Huntington Beach Public Library (FOTL) are donating $138,500 to the Huntington Beach Public Library for the purchase of books, eBooks and other library resources. Donations that exceed $100,000 from a single source during the fiscal year require City Council approval. Financial Impact: Accepting this donation from the FOTL brings their total donation for the fiscal year to $238,500. Recommended Action: Approve and accept the donation from the Friends of the Huntington Beach Public Library, allocating $138,500 to Adult Donations account 10350102.64455. Alternative Action(s): Do not approve and accept the donation. Analysis: This generous donation will help support the Library’s collection. Since 2002, the FOTL has donated over $2 million to the Library for books, materials and equipment. Environmental Status: Non-Applicable Strategic Plan Goal: Improve Quality of Life Enhance and Maintain City Service Delivery Attachment(s): None CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Stephanie Beverage, Director of Library Services SUBJECT: Approve and accept a donation from The Friends of the Huntington Beach Public Library (FOTL) in the amount of $ 138,500 for the purchase of books, eBooks and other library resources HB -82-Item 4. - 1 Dept. ID AD-18-002 Page 1 of 2 Meeting Date: 2/5/2018 Statement of Issue: This Request for Council Action formally accepts grant funds from the State of California Natural Resources Agency Department of Parks and Recreation for the Central Park Trail Rehabilitation. Financial Impact: The City will receive $35,000 from the State of California Natural Resources Agency Department of Parks and Recreation. The grant has a matching requirement of a 50 percent match ($35,000). Matching funds are available in the Park Acquisition and Development Fund (Fund 209) and will also be appropriated for compliance with match requirements. Recommended Action: A) Authorize the City Manager or his designee to accept grant funds from the California Natural Resources Agency Department of Parks and Recreation; and, B) Accept and appropriate $35,000 from the State of California, and appropriate an additional $35,000 in the Parks Acquisition and Development Fund to meet the local match requirement; and, C) Approve and authorize the Mayor and City Manager to execute a Deed Restriction on a portion of the Central Park Trail. Alternative Action(s): Do not accept grant funds and direct staff how to proceed. Analysis: The Habitat Conservation Fund (HCF) Program allocates approximately $2 million per year to the California Department of Parks and Recreation to provide grants to local entities to protect fish, wildlife, and native plant resources; to acquire or develop wildlife corridors and trails; and to provide for nature-interpretation programs and other programs which bring urban residents into park and wildlife areas. The California Wildlife Protection Act of 1990, Fish and Game Code, Chapter 9, defines the program and authorizes grant funding to local agencies. The City was granted $35,000 to fund improvements to a portion of the Central Park Trail. This portion of the Central Park Trail links the Urban Forest area to the developed trails in Central Park, CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 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: Accept and appropriate funds from the State of California Natural Resources Agency Department of Parks and Recreation for the Central Park Trail Rehabilitation; and, authorize execution of a Deed Restriction HB -83-Item 5. - 1 Dept. ID AD-18-002 Page 2 of 2 Meeting Date: 2/5/2018 which lead to Huntington Lake, Shipley Nature Center, and the Senior Center. The trail, as it stands today, is in major need of improvements. The grant funds will be used to better define the path of travel and improve uneven surfaces over sections of the trail. Decomposed granite will be applied over existing native soil. Landscape timbers and interpretive signage will also be placed along the trail. These much needed improvements will enhance the enjoyment and safety of those who wish to traverse this portion of Central Park. The project will significantly increase trail opportunities for Huntington Beach residents and visitors to experience a passive recreation opportunity in the midst of a suburban setting. Visitors will experience native plants and wildlife as the trail is adjacent to the Raptor Foraging Habitat site. In order to receive funding from the State of California, this grant requires that a deed restriction be recorded on the title to the property. The deed restriction protects the State’s interest in the property and ensures that the property will be used for purposes consistent with the grant contract. Environmental Status: The grant submittal required the preparation of environmental documents pursuant to the California Environmental Quality Act (CEQA). As such, in accordance with CEQA, staff has determined that the work for the restoration of trails and habitat do not result in new or the intensification of environmental impacts in that no new trails will be constructed and no new swathes of habitat will be created. Therefore, the restoration project is Categorically Exempt pursuant to Class 1, Existing Facilities, and Class 4, Minor Alterations to Land. Strategic Plan Goal: Improve quality of life Attachment(s): 1. Award Notification from the State of California 2. Grant Agreement 3. Deed Restriction HB -84-Item 5. - 2 HB -85-Item 5. - 3 HB -86-Item 5. - 4 HB -87-Item 5. - 5 HB -88-Item 5. - 6 HB -89-Item 5. - 7 HB -90-Item 5. - 8 HB -91-Item 5. - 9 HB -92-Item 5. - 10 HB -93-Item 5. - 11 HB -94-Item 5. - 12 HB -95-Item 5. - 13 HB -96-Item 5. - 14 HB -97-Item 5. - 15 HB -98-Item 5. - 16 HB -99-Item 5. - 17 HB -100-Item 5. - 18 HB -101-Item 5. - 19 HB -102-Item 5. - 20 HB -103-Item 5. - 21 HB -104-Item 5. - 22 HB -105-Item 5. - 23 HB -106-Item 5. - 24 HB -107-Item 5. - 25 HB -108-Item 5. - 26 HB -109-Item 5. - 27 HB -110-Item 5. - 28 HB -111-Item 5. - 29 HB -112-Item 5. - 30 HB -113-Item 5. - 31 HB -114-Item 5. - 32 HB -115-Item 5. - 33 HB -116-Item 5. - 34 HB -117-Item 5. - 35 Dept. ID CT 18-002 Page 1 of 2 Meeting Date: 2/5/2018 Statement of Issue: Pursuant to California Government Code, the Treasurer of the local agency may render an annual statement of investment policy to the legislative body for consideration and adoption. The City Treasurer, with the assistance of the Investment Advisory Board, has prepared an updated investment policy. Financial Impact: Not Applicable. Recommended Action: Adopt Resolution No. 2018-06, “A Resolution of the City Council of the City of Huntington Beach, Approving the Statement of Investment Policy 2018.” Alternative Action(s): Do not approve the attached Resolution and adopt the Investment Policy and advise staff how to proceed. Analysis: The City Treasurer is responsible for the administration of the investments of the City of Huntington Beach. The purpose of the Investment Policy is to establish cash management and investment guidelines for the investment of the City’s unexpended cash balances, which exclude employee retirement funds, funds governed by bond indenture agreements and other funds managed separately. This policy shall apply to each investment transaction and the entire portfolio, which must comply with the California Government Code, Sections 53600 through 53683, and all other applicable laws and regulations. The City’s Investment Policy may be rendered annually to the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return. The attached Investment Policy has been reviewed by the City’s Investment Advisory Board and approved as to form by the City Attorney. The Investment Policy has been certified by the California Municipal Treasurers Association stating that it complies with the current State statutes governing the investment practices of local government entities located within the State of California. As approved by the City Council on December 18, 2017, the City of Huntington Beach will change its fiscal reporting year to July 1 through June 30th beginning July 1, 2018. This change to the fiscal year will allow the City to prepay the annual Calpers unfunded liability cost in July, resulting in an annual cost savings of approximately $900,000, rising to over $1,000,000 in subsequent years. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Adopt Resolution No. 2018-06 approving the Fiscal Year 2018/2019 Investment Policy HB -118-Item 6. - 1 Dept. ID CT 18-002 Page 2 of 2 Meeting Date: 2/5/2018 In order that funds for the approximately $24.9 million Calpers prepayment be available in July of 2018, such funds must be invested in a short-term manner. This change to the investment strategy will provide that an additional 12-14% of the investment portfolio will be invested in opportunities with a maturity of six months or less in order to match the liability due in July. Consequently, the Investment Policy benchmark must be adjusted as the investment portfolio will be invested with a shorter duration to meet the City’s liquidity obligations. Section 17.1 Market Yield (Benchmark) of the City’s Investment Policy states: “The investment portfolio shall be managed to attain a market-average rate of return through budgetary and economic cycles, taking in to account the City’s investment risk constraints and cash flow.” With the liquidity requirements of the Calpers prepayment, the benchmark shall now be the 12-month moving average of the interpolated 1.5-Year Constant Maturity Treasury (“CMT”) rate. This will better match the decreased duration of the investment portfolio going forward due to the requirement of the Calpers lump sum prepayment on an annual basis. All other aspects of the Investment Policy remain substantially unchanged. Environmental Status: Not Applicable Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Resolution No.2018-06 of the City Council of the City of Huntington Beach adopting the 2018 Investment Policy 2. Exhibit A to Resolution No. 2018-06: 2018 Investment Policy HB -119-Item 6. - 2 HB -120-Item 6. - 3 1 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY 2018 HB -121-Item 6. - 4 2 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY 2018 TABLE OF CONTENTS SECTION 1.0 Purpose..................................................................................................................... 3 2.0 Policy ........................................................................................................................ 3 3.0 Scope......................................................................................................................... 3 4.0 Prudence .................................................................................................................. 4 5.0 Objective .................................................................................................................. 4 6.0 Investment Advisory Board ................................................................................... 5 7.0 Delegation of Authority .......................................................................................... 5 8.0 Ethics and Conflicts of Interest ............................................................................. 6 9.0 Authorized Financial Dealers & Institutions ....................................................... 6 10.0 Authorized & Suitable Investments ...................................................................... 7 11.0 Portfolio Adjustment ............................................................................................ 13 12.0 Collateralization .................................................................................................... 13 13.0 Safekeeping and Custody ..................................................................................... 14 14.0 Diversification ....................................................................................................... 14 15.0 Maximum Maturities ............................................................................................ 15 16.0 Internal Control .................................................................................................... 15 17.0 Performance Standards ........................................................................................ 16 18.0 Reporting ............................................................................................................... 17 19.0 Investment Policy Adoption ................................................................................ 18 Glossary ................................................................................................................. 19 HB -122-Item 6. - 5 3 CITY OF HUNTINGTON BEACH Statement of Investment Policy 1.0 Purpose: This policy is intended to provide guidelines for the prudent investment of the City’s unexpended cash balances, and to outline the policies to assist in maximizing the efficiency of the City’s cash management system while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Huntington Beach are based upon California state law and prudent money management. 3.0 Scope: This investment policy applies to all financial assets as indicated in Section 3.1 below of the City of Huntington Beach. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The City Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s pension funds, which are invested separately by CALPERS, those funds which are invested separately by the City Treasurer under bond indenture agreements, and funds which are invested separately by the City Treasurer or trustees under other agreements approved by Council such as the Retiree Medical Trust, the Post-Employment Section 115 Trust and the Supplemental Pension Trust. The City Treasurer will strive to maintain the level of investment of this cash (that is not to be utilized for operating cash flow in the next six months), as close as possible to 100%. These funds are described in the City’s annual financial report and include: 3.1.1 General Fund 3.1.2 Special Revenue Funds 3.1.3 Capital Project Funds 3.1.4 Enterprise Funds 3.1.5 Trust and Agency Funds 3.1.6 Debt Service Funds HB -123-Item 6. - 6 4 3.1.7 Infrastructure Funds 3.1.8 Capital Improvement Reserve Funds 3.1.9 Any new fund created by the legislative body, unless specifically exempted This investment policy applies to all transactions involving the financial assets and related activity of the foregoing funds. It is the City’s policy to pool funds for investment purposes to provide efficiencies and economies of scale. Investing through a pooled account will provide for greater use of funds by allowing for a more efficient cash flow, a reduction in transaction costs and a greater access to the market. 4.0 Prudence: The standard of prudence to be used by the City Treasurer shall be the “prudent investor” standard. This shall be applied in the context of managing an overall portfolio. The “Prudent Investor Rule” provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care—under circumstances then prevailing—which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The City Treasurer and any designee of the City Treasurer, as investment officers acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Huntington Beach shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. HB -124-Item 6. - 7 5 5.2 Liquidity: The investment portfolio will remain sufficiently liquid to enable the City of Huntington Beach to meet all reasonably anticipated operating requirements and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. Furthermore, since all possible cash demands cannot be anticipated, the portfolio will invest primarily in securities with active secondary and resale markets. 5.3 Return on Investments: The investment portfolio shall be designed with the objective of attaining a market- average rate of return throughout budgetary and economic cycles (market interest rates), within the City of Huntington Beach’s investment policy’s risk parameters and the cash flow needs of the City. See also Section 17.0. 6.0 Investment Advisory Board: By City Charter, the City Treasurer is the custodian of all public funds of the City of Huntington Beach. The City Council members may each appoint one Huntington Beach resident to serve on an Investment Advisory Board for the purpose of advising the City Treasurer and the City Council on the City’s investment program. The Investment Advisory Board will review the investment portfolio for compliance with the adopted investment policy on a quarterly basis and will prepare an Annual Report. 7.0 Delegation of Authority: In accordance with the State of California Government Code § 53607, the City Council delegates investment authority to the City Treasurer for a period of one year and such investment authority must be renewed annually. Adoption of this policy constitutes delegation of investment authority to the City Treasurer for the following year unless revoked in writing. Within the City Treasurer’s office, the responsibility for the day to day investment of City funds will be the City Treasurer and may be delegated to such deputy chosen by the City Treasurer in the absence of the City Treasurer (as allowable per State of California Government Code § 41006). The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. HB -125-Item 6. - 8 6 8.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers are required to file annual disclosure statements as required for "public officials who manage public investments" (as defined and required by the Political Reform Act and related regulations, being Government Code Sections 81000 and the Fair Political Practices Commission (FFPC)). 9.0 Authorized Financial Dealers and Institutions: The City Treasurer will maintain a list of the financial institutions and broker/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of such qualified providers. The City Treasurer will also require annual audited financial statements to be on file for each company. The City shall annually send a copy of the current investment policy to all financial institutions and broker/dealers approved to do business with the City. As far as feasibly possible, all money belonging to, or in the custody of, a local agency, including money paid to the City Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in national or state chartered banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City Treasurer or other official having legal custody of the money; or may be invested in the investments set forth in Section 10.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate-income neighborhoods. In order to be approved by the City, the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capitol Rule). The institution must have an office in California. The dealer must be experienced in institutional and public fund trading practices and familiar with the HB -126-Item 6. - 9 7 California Government Code as related to investments appropriate for the City; and, other criteria as may be established in the investment procedures. All broker/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority, Inc. (“FINRA”) certification and a certification of having read and understood the City’s investment policy and agreeing to comply with the policy. Capital requirements for registered government securities brokers and dealers shall meet or exceed the requirements as set forth by the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capitol Rule). Such companies shall also have a minimum of five years of operation. 10.0 Authorized and Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq. to invest in specific types of securities. Investments not specifically listed below are deemed inappropriate and are prohibited: A. BANKERS ACCEPTANCES, maximum 25% of portfolio (up to 40% with City Council approval). Maximum term of 180 days. Banks must have a short term rating of at least A1/P1 and a long-term rating of “A” or higher as provided by a nationally recognized statistical rating organization (“NRSRO”). No more than 10 percent of the agency’s money may be invested in the bankers accepta nces of any one commercial bank pursuant to this section. B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio. Maximum term of 3 years (up to 5 years with City Council approval). May be issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank. Issuer must have a short term rating of A1/P1 and a long term rating of “A” or higher as provided by an NRSRO. No more than 10 percent of the agency’s money may be invested in negotiable certificates of deposit of any one issuer. C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term of 270 days. HB -127-Item 6. - 10 8 Commercial paper must be of "prime" quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO. Split ratings (i.e. A2/P1) are not allowable. No more than 10 percent of the outstanding commercial paper of any single corporate issue may be purchased. No more than 10 percent of the agency’s money may be invested in Commercial Paper of any one issuer. D. BONDS ISSUED BY THE STATE OF CALIFORNIA OR ANY OF THE OTHER 49 UNITED STATES. Maximum term of 5 years. Bonds must have an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in state bonds of any one issuer. E. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Maximum term of 5 years. Bonds must have an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in city or local agency bonds of any one issuer. F. OBLIGATIONS OF THE UNITED STATES TREASURY. Maximum term of 5 years. United States Treasury bills, bonds and notes or certificates of indebtedness, for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. G. U.S. GOVERNMENT AGENCY SECURITIES (FEDERAL AGENCIES). Maximum term of 5 years. Obligations, participations or other instruments of or issued by a federal agency or a United States government-sponsored enterprise. There is no limit on the percentage of the portfolio that can be invested in this category. H. REPURCHASE AGREEMENT. Maximum term of 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. HB -128-Item 6. - 11 9 A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. I. REVERSE-REPURCHASE AGREEMENTS. (Requires City Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: (A) The security to be sold on reverse repurchase agreement or securities lending agreemen t has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of t he base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained, or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty (by way of a reverse repurchase agreement or securities lending agreement), shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security, shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state -chartered bank that has or has had a significant banking relationship with a local agency. (A) For purposes of this chapter, "significant banking relat ionship" means any of the following activities of a bank: (i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities. (iii) Acceptance of a local agency's securities or funds as deposits. HB -129-Item 6. - 12 10 J. MEDIUM-TERM CORPORATE NOTES, maximum 30% of portfolio with a maximum remaining maturity of 5 years or less. Notes eligible for investment must be rated “A” or higher by an NRSRO . No more than 10 percent of the agency’s money may be invested in medium-term corporate notes of any one issuer. K. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). Maximum term of 3 years. Deposits must be made with banks or savings & loan that have a short term rating of A1/P1 or a long-term rating of at least an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in time-deposits of any one issuer L. MONEY MARKET FUNDS, maximum 15% of portfolio. No more than 10 percent of the agency’s surplus funds may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, U.S. Government Agencies and repurchase agreements with a weighted average of 60 days or less. They must have the highest rating from at least two NRSROs, must maintain a daily principal per share value of $1.00 per share and distribute interest monthly, and must have a minimum of $500 million in assets under management. The purchase price of the shares may not include commission. M. THE LOCAL AGENCY INVESTMENT FUND (LAIF) LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to the maximum allowable by the State Treasurer’s Office (currently $65,000,000). Investments in LAIF are highly liquid and may be converted to cash within 24 hours. N. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. The City may invest up to $20,000,000 per joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: (1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). HB -130-Item 6. - 13 11 O. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IDB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section. HB -131-Item 6. - 14 12 INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED % OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS Bankers' Acceptances 180 days 25% (up to 40% with Council approval)/10% A1/P1, "A" Rating Negotiable Certificates of Deposit 3 years (Up to 5 years with Council approval) 30%/10% A1/P1, "A" Rating Commercial Paper 270 days 25%/10% A1, "A" Rating State Obligations-- CA And Others 5 years None/10% "A" Rating City/Local Agency of CA Obligations 5 years None/10% "A" Rating U.S. Treasury Obligations 5 years None None U.S. Government Agency Obligations 5 years None None IBRD, IFC, IDB 5 years 10% "AA" Rating Repurchase Agreements 3 Months None None Reverse Repurchase Agreements 92 days 20% of the base value of portfolio. Requires City Council Approval None Medium-Term Corporate Notes 5 years 30%/10% "A" Rating Non-negotiable Certificates of Deposit 3 years None/10% A1/P1, "A" Rating Money Market Mutual Funds 60 days 15%/10% "AAA" Rating Local Agency Investment Fund (LAIF) N/A Up to $65,000,000 None Joint Powers Authority N/A None/$20,000,000 See 10.0N above HB -132-Item 6. - 15 13 10.1 Investment Pools/Money Market funds: The City Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 11.0 Portfolio Adjustments: California government code section 53601 states that if a percentage limitation for a particular category of investment is specified, then that percentage is applicable only at the date of purchase. Should any investment listed in section 10.0 exceed a percentage - of-portfolio limitation or a percentage-by-issuer limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer may consider reconstructing the portfolio basing his/her decision on the expected length of time the portfolio will be unbalanced. As well, the credit criteria listed herein refers to the credit rating at the time the security is purchased. If a security held in the portfolio is downgraded by an NRSRO to a level below the quality required by this investment policy, the City Treasurer will review the credit and make a determination as to whether to sell or retain such security. The City Treasurer will review the portfolio for such compliance no less than quarterly. 12.0 Collateralization: Under provisions of the California Government Code, California banks, and other depository institutions are required to secure the City’s deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of City’s total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. HB -133-Item 6. - 16 14 Since the market value of the underlying securities is subject to daily market fluct uations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. The City Treasurer, at his/her discretion, may waive the collateral requirement for deposits that are fully insured (current limit is $250,000) by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. The City Treasurer or designee shall ensure that all demand deposits that exceed the FDIC limit (currently $250,000) shall be fully collateralized with securities authorized under state law and this Investment Policy. 13.0 Safekeeping and Custody: All City investments shall have the City of Huntington Beach as its registered owner, and all interest and principal payments and withdrawals shall indicate the City of Huntington Beach as the payee. All securities will be held with a qualified financial institution, contracted by the City as a third party custodian with a separate custodial agreement (does not apply to insured Certificates of Deposit, money market funds, or the Local Agency Investment Fund). All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counterparty bank’s customer book entry account may be used for book entry delivery. The City Treasurer or designee shall require a Broker Trade confirmation for all trades. 14.0 Diversification: The City’s investment portfolio will be diversified to mitigate incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the investment policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. HB -134-Item 6. - 17 15 B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by structuring the portfolio so that securities mature as much as possible in conjunction with major cash outflows, thus minimizing the need to sell securities prior to their maturity. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 15.0 Maximum Maturities: To the extent possible, the City of Huntington Beach will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. The City of Huntington Beach shall not permit more than 50% of its investment portfolio to be invested in securities with maturities over four years. 16.0 Internal Control: The City Treasurer and the Finance Department shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this policy and the procedure established by the City Treasurer. The external auditors shall annually review the investments with respect to the investment policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of interest on investments to fund balances shall be performed by the Finance Department and approved by the City Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the four designated City officials: HB -135-Item 6. - 18 16 1. City Treasurer 2. Treasury Manager 3. Chief Financial Officer 4. Accounting Manager 17.0 Performance Standards: This investment policy shall be reviewed at least annually by the Investment Advisory Board and the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. The moneys entrusted to the City Treasurer will be primarily a passively managed portfolio. However, the City Treasurer will make best efforts to observe, review, and react to changing conditions that affect the portfolio. 17.1 Market Yield (Benchmark): The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on primarily a ‘hold-to-maturity’ premise, and because of the safet y, liquidity, and yield priorities, the performance benchmark that will be used by the Treasurer to determine whether market yields are being achieved shall be the 12- month moving average of the interpolated 1.5-Year Constant Maturity Treasury (CMT) rate. This interpolated rate shall be utilized in order to best match the average duration of the portfolio. However, since return on investment is the least important objective of the investment portfolio, the benchmark will be used only as a reference tool. The reporting of a benchmark does not imply that the City Treasurer will add additional risk to the investment portfolio in order to attain or exceed the benchmark. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The City Treasurer will not directly pursue any investments that are leveraged or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of ongoing portfolio management. HB -136-Item 6. - 19 17 18.0 Reporting: The City Treasurer shall submit a quarterly report to the City Council, City Manager, Chief Financial Officer and the Investment Advisory Board within 30 days following the end of the quarter. This report will include the following elements pursuant to State law and Government Accounting Standard Board (GASB) #40: 18.1 Type of investment 18.2. Institution/Issuer 18.3 Purchase Date 18.4 Date of maturity 18.5 Amount of deposit or cost of the investment 18.6 Face value of the investment 18.7 Current market value of securities and source of valuation 18.8 Rate of interest 18.9 Interest earnings 18.10 Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance 18.11 Statement on availability of funds to meet the next six month’s obligations 18.12 Monthly and Year to date City Treasurer Budget Amounts for Interest Income 18.13 Percentage of Portfolio by Investment Type 18.14 Days to Maturity for all Investments 18.15 Comparative report on Monthly Investment Balances & Interest Yields 18.16 Monthly transactions This quarterly report shall be placed on the City Council Agenda for Council and public review. In addition, a commentary on capital markets and economic conditions may be included with the report. The City Treasurer shall submit to the City Council, City Manager and Chief Financial Officer a monthly report listing the above stated (18.1 – 18.16) financial transactions. HB -137-Item 6. - 20 18 19.0 Investment Policy Adoption: By virtue of a resolution of the City Council of the City of Huntington Beach, the Council shall acknowledge the receipt and filing of this annual statement of investment policy for the respective year. HB -138-Item 6. - 21 19 GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e. 0.01%) BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the porfolio’s investments. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He/she does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. HB -139-Item 6. - 22 20 COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation (including limited liability companies) to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City. It includes combined statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material and a detailed Statistical section. COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions; buying and selling for his/her own account. DEBENTURE: An unsecured bond backed only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is HB -140-Item 6. - 23 21 derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g. US Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g. S&L’s, Small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve though open-market operations. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. HB -141-Item 6. - 24 22 FEDERAL RESERVE SYSTEM: The central bank of the United States created by congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System. National banks must be members; state-chartered banks may join if they meet certain requirements. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and a reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. HB -142-Item 6. - 25 23 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (“NRSRO”): Firms that review and assess the creditworthiness of an obligor as an entity or with respect to specific securities or money market instruments and express their opinion in the form of a letter rating. A credit rating agency may apply to the SEC for registration as a nationally recognized statistical rating organization (“NRSRO”). The primary rating agencies are Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch, Inc. NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See “Asked” and “Bid”. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. HB -143-Item 6. - 26 24 PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FHLMC, etc.) and Corporations, which have imbedded option (e.g. call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. HB -144-Item 6. - 27 25 SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by Federal government to provide financial assistance through direct loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments. SUPRANATIONAL SECURITIES: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IDB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of from one year to ten years. HB -145-Item 6. - 28 26 UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. HB -146-Item 6. - 29 Dept. ID CS 18-001 Page 1 of 2 Meeting Date: 2/5/2018 Statement of Issue: There is a need to approve a Memorandum of Understanding with Project Self-Sufficiency to formalize their relationship with the City of Huntington Beach. Financial Impact: Not applicable. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a “Memorandum of Understanding Between the City of Huntington Beach and Project Self-Sufficiency.” Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: The City of Huntington Beach (City) began operating the Project Self-Sufficiency program in 1985 through a U. S. Housing and Urban Development Grant. The City worked with community volunteers to form the Project Self-Sufficiency Foundation, a 501c3, and in 1994 began a Public/Private partnership. The City has requested that the Project Self-Sufficiency Foundation (recently renamed Project Self-Sufficiency) operate the Project Self-Sufficiency program independently as a 501c3 and separate from the City and from City General Fund support. The City and Project Self-Sufficiency (PS-S) want to enter into a Memorandum of Understanding (MOU) to support PS-S and to clarify the respective obligations of each. Key points in the MOU include: Obligations of CITY: • Generate pro-rated checks to PS-S for any unspent 2017 Surf City 10 funds, and any unspent HOAG Memorial Hospital Presbyterian (HOAG) funds obtained for PS-S salaries for 2018 (FY 2017/18) and 2019 (FY 2018/19), as agreed upon in the HOAG MOU. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: David Dominguez, Acting Director of Community Services SUBJECT: Approve and authorize execution of a Memorandum of Understanding (MOU) between the City of Huntington Beach and Project Self-Sufficiency (PS-S) HB -147-Item 7. - 1 Dept. ID CS 18-001 Page 2 of 2 Meeting Date: 2/5/2018 • As a City Co-Sponsored event, provide space at the Senior Center in Central Park for the PS- S Annual Holiday Party, waiving hourly room rental fees and billing for direct event costs only. City will provide space if available, for additional PS-S meetings and events at the Senior Center in Central Park in accordance with the City Council approved nonprofit rate. • Assist PS-S in promoting the transition of the program to a private non-profit agency, utilizing various marketing tools. Obligations of PROJECT SELF-SUFFICIENCY: • Date of separation for all PS-S staff employed by the City of Huntington Beach will be February 28, 2018. • In an effort to generate program funding, PS-S will maintain existing collaborative relationships and develop new partnerships, independent of the City, with current and future potential philanthropic partners. • For the duration of this MOU, PS-S will submit a written request for use of City facilities in advance. Payment of any applicable direct costs will be required. • PS-S will assist the City in promoting the transition of the PS-S program to a private non- profit, by providing the City with written articles for various marketing tools. Environmental Status: Not applicable. Strategic Plan Goal: Improve quality of life Attachment(s): 1) “Memorandum of Understanding Between the City of Huntington Beach and Project Self- Sufficiency” HB -148-Item 7. - 2 HB -149-Item 7. - 3 HB -150-Item 7. - 4 HB -151-Item 7. - 5 HB -152-Item 7. - 6 HB -153-Item 7. - 7 HB -154-Item 7. - 8 HB -155-Item 7. - 9 HB -156-Item 7. - 10 HB -157-Item 7. - 11 HB -158-Item 7. - 12 HB -159-Item 7. - 13 HB -160-Item 7. - 14 HB -161-Item 7. - 15 HB -162-Item 7. - 16 Dept. ID HR 18-005 Page 1 of 2 Meeting Date: 2/5/2018 Statement of Issue: A national recruitment has been conducted for the position of Director of Community Services. The City Manager is recommending the appointment of Marie Knight to the position based on the outcome of the recruitment process. Financial Impact: Funding for this position is included in the FY 2017/18 budget. Recommended Action: Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Marie Knight” for the position of Director of Community Services. Alternative Action(s): Do not approve the Employment Agreement of Marie Knight for the position of Director of Community Services and direct the City Manager to re-launch a national recruitment. Analysis: The position of Director of Community Services has been vacant since December 2017, due to the retirement of the former incumbent, Janeen Laudenback. Her retirement created the need to fill the department head vacancy. The City Manager authorized the Human Resources Department to launch the recruitment for the Director of Community Services in October 2017. The City received more than 170 applications for the position. Seven (7) candidates were invited to interview. The recruitment panels consisted of a panel of three City Department Heads, and a separate panel of three external department heads. The panels included leaders in the positions of City Manager, Assistant City Manager, Fire Chief, Library Services Director, and Public Works Director. Marie Knight was one of four (4) finalist candidates. The City Manager conducted follow-up interviews with each finalist and Marie Knight was selected. Marie Knight has more than three decades of experience in the area of Parks, Recreation and Community, and Senior Services. Most recently, Marie served as the Director of Parks, Recreation and Marine for the City of Long Beach. From 2006 through 2016, Marie served as the Director of Community Services for the City of Orange. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Michele Warren, Director of Human Resources SUBJECT: Approve the appointment of Marie Knight to the position of Director of Community Services and authorize the City Manager to execute the Employment Agreement HB -163-Item 8. - 1 Dept. ID HR 18-005 Page 2 of 2 Meeting Date: 2/5/2018 Prior to her time in Orange, Marie served as the Director of Recreation and Senior Services in the City of Newport Beach. Marie holds a Bachelors Degree from the University of Wisconsin-Madison and is a long-term member of the California Park and Recreation Society. The City Manager recommends City Council approval to appoint Marie Knight to the position of Director of Community Services, effective February 26, 2018. The contractual compensation is recommended at Non-Associated/Executive Management Pay Grade NA 0014, End Point. The annual salary is $192,316. Environmental Status: N/A Strategic Plan Goal: Enhance and Maintain City Service Delivery Attachment(s): 1. Director of Community Services - Recruitment Brochure 2. Resume – Marie Knight 3. Employment Agreement 4. Exhibit A -Non-Associated Resolution – Resolution No. 2016-50 HB -164-Item 8. - 2 City of Huntington Beach D i r e c t o r o f C o m m u n i t y S e r v i c e s Filing Deadline: November 27, 2017 w w w. g ov e r n m e n t j o b s . c o m I N V I T E S YO U R I N T E R E S T I N T H E P O S I T I O N O F Director of Community Services HB HB -165-Item 8. - 3 HB D i r e c t o r o f C o m m u n i t y S e rv i c e s THE COMMUNITY The City of Huntington Beach is located on the shore of the Pacific Ocean in northwestern Orange County, 40 miles south of Los Angeles and 90 miles north of San Diego. As the fourth largest city in Orange County, with a population approximating 200,000 residents, Huntington Beach is known as “Surf City” due to its abundance of beaches, sunny, warm Mediterranean climate and casual lifestyle. Huntington Beach covers 28 square miles of land, 26 square miles of water, and is the 16th largest city in California. With 10 miles of uninterrupted beach along the Pacific Ocean, the City also plays host to an annual visitor population of over 11 million people. Listed amongst the nations’s safest cities for decades, Huntington Beach has often been ranked among the Top Ten Safest Cities by “City Crime Rankings.” Huntington Beach has also been named the “Best City to Live In” in Orange County by the readers of the Orange County Register. Huntington Beach has one of the largest pleasure piers in the world and has the longest concrete pier in the State. The City’s park system includes 58 public parks (including a dog park), riding stables, and the largest city -owned and operated regional park in Orange County — Huntington Central Park. Also within the City’s boundaries are five recreation centers (including a senior center), three miles of equestrian trails, two golf courses, 72 tennis courts, a marin a and a protected wildlife preserve. Running parallel to Pacific Coast Highway and just steps from the ocean is an eight - mile strand perfect for biking, inline skating, jogging or a leisurely stroll. The City is home to the International Surfing Museum, the Surfing Walk of Fame, Bolsa Chica Ecological Reserve, Huntington Harbour and the Huntington Beach Art Center. Huntington Beach draws some of the largest crowds in the world to a variety of events including the Breitling HB Air Show and professional sporting events such as the U.S. Open of Surfing, Van’s World Championship of Skateboarding and AVP Pro Beach Volleyball. There are 35 elementary schools, five public high schools and one community college (Golden West College) located within Huntington Beach. The City has a world-class library as well as four additional branch libraries. The University of California, Irvine and California State Universities at Long Beach and Fullerton are located in close proximity. There are over 80,000 households within the city. The median family household income is $88,035 ranking one of the highest in the nation. The 2015 Median Home Value was $642,900 Page 2 2 THE CITY GOVERNMENT Founded in the late 1880s, Huntington Beach was incorporated as a Charter City in 1909. Huntington Beach has a City Council/City Manager form of government. The City Council has seven members who are elected at large, on a non- partisan basis, to four-year overlapping terms. City Council members are limited to two consecutive 4-year terms. There are three elected department heads - the City Attorney, City Clerk and City Treasurer. The position of Mayor is filled on a rotating basis. The City of Huntington Beach is organized into 13 major departments including City Attorney, City Clerk, City Manager, City Treasurer, Community Development, Community Services, Finance, Fire, Human Resources, Information Services, Library Services, Police and Public Works. The City has approximately 1,500 full and part -time employees and a total budget of approximately $345 Million. HB -166-Item 8. - 4 D i r e c t o r o f C o m m u n i t y S e r v i c e s Page 3 THE DEPARTMENT The Community Services Department is comprised of two divisions: Facilities and Development, and Programs and Services. The Community Services Director is responsible for setting department team goals through strategic planning, community collaboration and staff development; over sees the development of the department budget to accomplish department goals; and sets priorities for the allocation of resources and assets . Facilities and Development manages major citywide special events, contracted concession leases at Central Park, Sports Comple x, Meadowlark Golf Course and the Equestrian Center and a variety of city rental facilities. This division also oversees the development of park capital i mprovement projects, including rehabilitation and new construction; manages the operation of city beach parking lots, metered parking, and camping facilitie s; and provides oversight for the Community Services Commission. Programs and Services manages a wide-variety of year-round special events, sports and recreational programs and oversees the operation of the Murdy and Edison Community Centers, City Gym and Pool, HB Art Center and the City’s state -of-the-art Senior Center in Central Park. This unit also manages year-round aquatics programs and Human Services programs, including senior meals and care management as well as the Surf City Seniors on the Go!, transportation programs through grants and donations; and provides oversight for the Allied Arts Board and the Children’s Needs Task Force. THE IDEAL CANDIDATE The City is seeking a dynamic Community Services Director who will be a visionary with strong collaborative leadership skills; a personable and professional leader with a willingness to proactively address internal and external issues. He or she will have a good sense of the needs of the department and of the community, and will foster innovative ways to meet the changing needs of the community. The ideal candidate will be progressive and forward-thinking, creative and innovative, and able to build upon the current organizational structure to improve service delivery methods. The incoming Director of Community Services must be an active change agent, willing to adapt and evolve to improve processes, methods and results. An individual who is willing to listen and accept input from staff, community members and other stakeholders is essential. The ideal candidate will have high energy, a clear vision for the future goals of the department, and will have the capacity to see challenges as opportunities. The selected candidate will r espond to issues and concerns by recommending positive alternatives and workable solutions. A leader who can assist the City Manager in making prudent decisions, setting direction for the department and who accepts accountability is essential. The model candidate will be a team builder with the ability to inspire, motivate, and mentor staff. An individual who has experience working effectively with elected officials, community stakeholders and staff from a variety of city departments using a collaborative style of management will excel in this position. The City would benefit from a director who is approachable with an open style of communication. Candidates should possess a well rounded background working with a variety of non-profit, volunteer and community groups and have a thorough understanding of community services operations including experience with parking operations, facility development and human services. A professional with training and experience working in a leadership capacity within an Emerg ency Operations Center logistics team would be an asset to this position. The ideal candidate will possess a Bachelors degree from an accredited college or university in Parks/Recreation Administration, Human Services, Public Administration, or similar field and have five (5) years of progressively responsible experience, including three (3) years of supervisory experience at the management level. Masters degree preferred. THE POSITION The Director of Community Services is a key member of the City Manager’s Executive Team, and provides professional leadership in the management of this vital and complex department. The Director is responsible for managing, guiding and supporting a diverse work force; developing meaningful collaborations with outside agencies, and overseeing the development and implementation of a variety of community service programs. The Director of Community Services duties and responsibilities also include assisting the City Manager in administering Council policy and responding to City Council issues and concerns related to community services operations. The Department has two operational divisions, with an operating budget of nearly $13.9 million and approximately 235 full and part-time staff. PRIORITIES AND CHALLENGES The new director will be tasked with interesting and challenging opportunities, including, but not limited to:  Engaging with the Community Services Commission, community stakeholders, volunteer organizations and City staff to understand community needs, maximize grant opportunities, and deploy resources to effectively manage a wide variety of park development and capital improvement projects.  Supporting and encouraging ongoing rapport with Elementary, High School and Community College Districts to strengthen communi ty partnerships and facility use collaborations.  Fostering ongoing partnerships with faculty and administration within the CSU system to provide educational and internship op portunities for students, thereby creating a variety of collaborations to expand service to the community.  Expanding staff capacity and fostering succession planning by utilizing the department organizational structure to provide op portunities for team leaders to gain meaningful and relevant experience with a variety of facilities, programs and services.  Providing oversight and support to the newly reorganized Facilities and Development Division responsible for maintaining the City's parking lots, municipal pier, parking meter and revenue collection and maintenance, the Main Promenade Parking Structure, Pier Plaza, as well as the Sunset Vista RV Campground. HB -167-Item 8. - 5 D i r e c t o r o f C o m m u n i t y S e r v i c e s Page 4 Compensation and the Selection Process A b i l i t i e s a n d K n o w l e d g e The selected candidate should have the ability to:  Provide leadership and direction in the identification, develop- ment and implementation of the City’s goals, strategies, programs and policies related to Community Services operations;  Direct all activities related to Community Services operations including staff oversight;  Develop and monitor long and short range operational plans and oversee the preparation of complex Community Services opera- tional reports and presentations;  Ensure data related to Community Services operations is accu- rate, timely and meaningful;  Manage complex programs and projects involving cross- functional teams requiring coordination and collaboration with inter- nal and external stakeholders;  Grasp “big-picture” concepts while retaining focus on critical program/project details;  Introduce innovative and sound strategies related to operational and organizational change;  Understand and effectively execute organizational and manage- ment practices as applied to evaluation of Community Services pro- grams, policies and functional needs;  Be an effective leader, including mentoring and coaching of staff;  Effectively manage the department budget and demonstrate prudent fiscal management practices;  Communicate effectively through verbal presentations, written reports and discussions with staff and outside organizations, includ- ing, boards, commissions, council and other government agencies. C O M P E N S A T I O N The annual salary for this position is within an established range of $155,251 to $192,316 and will be dependent upon the qualifications and experience of the selected candidate. In addition, benefits pro- vided include: Retirement Classic Members: California PERS: 2.5% at 55 Miscellaneous benefit formula. Employees contribute 8% of the employee share. New Members: California PERS: 2% at 62 Miscellaneous benefit formula. Employees contribute 6.25% of the employee share. The City does not pay into Social Security, however all employees pay 1.45% towards Medicare. Insurance—Health (medical/dental/vision), life and disability insur- ance provided by City. Employees contribute a portion towards health insurance. IRS Section 125 medical and dependent care reim- bursement plan (FSA) is available. Leave—General leave—176 hours per year for the first five years of service—in lieu of sick/vacation leave; 80 hours of executive leave per calendar year. Ten (10) paid holidays annually. Auto Allowance—$500 per month. Deferred Compensation Plans—457 and 401 (a) plans are available. The Selection Process Interested candidates should apply online at: www.governmentjobs.com. Filing deadline is 11/27/17. All candidates will be evaluated and only those applicants deter- mined to be most qualified will move forward in the selection proc- ess. The City Manager will make the final selection. A thorough investigation of professional and personal history and background will be performed prior to appointment. This review includes, but is not limited to, work, education, military, internal/ external investigations, criminal, civil, and financial information. Prior to appointment, the selected candidate must successfully com- plete a required comprehensive medical evaluation, which may in- clude drug screening. If you have any questions, please direct them to: Michele Warren, Director of Human Resources, City of Huntington Beach. E-mail: michele.warren@surfcity-hb.org or 714.536.5586. HB -168-Item 8. - 6 HB -169-Item 8. - 7 HB -170-Item 8. - 8 HB -171-Item 8. - 9 HB -172-Item 8. - 10 HB -173-Item 8. - 11 HB -174-Item 8. - 12 HB -175-Item 8. - 13 HB -176-Item 8. - 14 HB -177-Item 8. - 15 HB -178-Item 8. - 16 HB -179-Item 8. - 17 RESOLUTION NO. 2016-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR NON-REPRESENTED EMPLOYEES INCLUDING THE ELECTED CITY ATTORNEY, CITY CLERK, AND CITY TREASURER WHEREAS, the City Council of the City of Huntington Beach desires to modify the salary and benefits for Non-Represented Employees upon adoption of this Resolution. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. Salaries and Benefits for Non-Represented employees shall be as reflected in Exhibit "A", attached hereto and incorporated by this reference. SECTION 2. The salary range for the elected City Attorney, City Clerk and City Treasurer shall be modified as reflected in the Non-Associated Executive Management Salary Schedule—Exhibit 1. SECTION 3. Benefits for the elected City Attorney, City Clerk and City Treasurer shall be as reflected in Exhibit "A", attached hereto and incorporated by this reference. SECTION 4. Resolution 2007-6, Resolution 2010-106, and Resolution 2014-94 are hereby repealed. SECTION 5. Any existing provisions in conflict with the foregoing, whether by minute action or resolution of the City Council, are hereby repealed. SECTION 6. All other benefits and salary ranges established and reflected in the Non- Associated Employees Pay and Benefits Resolution 2016-50, shall continue unless modified by City Council action. RLS 6/27/16/16-5325/138993/MV 1 HB -180-Item 8. - 18 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 8"i6day of L.-7-4=e , 2016. RLS 6/27/16/16-5325/138993/MV 2 HB -181-Item 8. - 19 6 -SOLI-L770,1) .20/e &,‹,6/ NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT A - NON-ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISION 1 SECTION I PAY 1 A. SALARY SCHEDULE 1 B. DIRECT DEPOSIT 1 C. ASSIGNED VEHICLE/AUTO ALLOWANCE 1 1. Department Heads 1 D. Deferred Compensation 1 SECTION II— HOURS OF WORK/OVERTIME/TIME OFF 1 A. EXECUTIVE LEAVE 1 B. FLEXIBLE AND ALTERNATIVE WORK SCHEDULES 2 1. 5/40 Work Schedule 2 2. 9/80 Work Schedule 2 3. Alternative Work Schedule 2 SECTION III — HEALTH AND OTHER INSURANCE BENEFITS 2 A. HEALTH INSURANCE 2 1. Medical, Dental and Vision Insurance 2 2. City and Employee Paid Health Insurance 2 3. Medical Cash Out 4 4. Section 125 Plan 4 B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE 4 C. LONG-TERM DISABILITY INSURANCE 4 D. CITY-PAID PHYSICAL EXAMINATIONS 5 E. MISCELLANEOUS 5 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREE SUBSIDY PLAN 5 G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE 6 SECTION IV — RETIREMENT 6 A. BENEFITS 6 1. Self-Funded Supplemental Retirement Benefit 6 2. Medical Insurance for Retirees 6 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTIONS AND REPORTING 7 1. Miscellaneous Unit Members 7 2. Safety Unit Members 7 3. IRS Code 414(h)(2) 8 4. Pre-Retirement Optional Settlement 2 Death Benefit 8 5. Fourth Level of 1959 Survivor Benefits 8 6. VEBA Plan Requirements 8 SECTION V — LEAVE BENEFITS 10 Exhibit "A" to Non-Associated Resolution No. 2016-50 Item 25. - 5 HB -656 HB -182-Item 8. - 20 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION A. GENERAL LEAVE 10 1. Accrual 10 2. Eligibility and Approval 10 3. Leave Benefit Entitlements 10 4. Conversion to Cash 10 B. HOLIDAYS AND PAY PROVISIONS 11 C. SICK LEAVE 11 1. Accrual 11 2. Credit 12 3. Usage 12 4. Payoff at Termination 12 D. BEREAVEMENT LEAVE 13 E. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM 13 SECTION VI — RETIREE SUBSIDY MEDICAL PLAN 13 SECTION VII - MISCELLANEOUS 13 A. COLLECTION OF PAYROLL OVERPAYMENTS 13 B. UNIFORMS AND CALPERS REPORTING 14 EXHIBIT 1 - NON-ASSOCIATED SALARY SCHEDULE 15 EXHIBIT 2 - RETIREE MEDICAL PLAN 16 EXHIBIT 3 - 9/80 WORK SCHEDULE 20 EXHIBIT 4- VOLUNTARY CATASTROPHIC LEAVE DONATION 22 Exhibit "A" to Non-Associated Resolution No. 2016-50 ii HB 657 Item 25. -6 HB -183-Item 8. - 21 NON-ASSOCIATED EMPLOYEES PAY AND BENEFIT PROVISIONS EXHIBIT A SECTION I — PAY A. Salary Schedule 1. All current Non-Associated employees shall receive the salaries as identified in Exhibit 1. 2. The City Council shall set the salaries of the elected executive management positions identified in Exhibit 1, at any rate within the designated salary range. 3. The City Manager is authorized to set the salaries of the non-elected executive management positions identified in Exhibit 1 at any rate at or below the control point of the designated salary range. The City Manager is authorized to increase the salary by any percentage not greater than 5% based upon performance at annual review and market data. However, no salary for a new employee may be set above the control point at any time without City Council approval. B. Direct Deposit All Non-Associated employees are required to utilize direct deposit of payroll checks. C. Assigned Vehicle/Auto Allowance 1. Department Heads Appointed Department Heads and the City Clerk, City Treasurer, and City Attorney shall have the option of an assigned City vehicle or an auto allowance in the amount of two hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus reimbursement of out-of-town travel at the approved mileage rate. D. Deferred Compensation Effective the beginning of the pay period following City Council approval of this resolution, each employee covered by this resolution, including the City Attorney, City Clerk and City Treasurer, shall receive a one-time deposit to the employee's 457 Deferred Compensation account in the amount of $3,800.00. 1. This shall be a single, one-time only deposit. All appropriate Federal and State legal mandates regarding the tax-treatment of this one-time deposit shall apply. SECTION II — HOURS OF WORK/TIME OFF A. Executive Leave Non-Associated exempt employees shall not be eligible for overtime compensation. Exempt department heads shall be credited with eighty (80) hours of executive leave per calendar year. Item 25. - 7 "A" to Non-Associated Resolution No. 2016-50 HB -658 HB -184-Item 8. - 22 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. Flexible and Alternative Work Schedules 1. 5/40 Work Schedule The 5/40 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week with a one-hour lunch during each work shift, totaling a forty (40) hours work week. 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in Exhibit 3, shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA designated work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 3. Alternative Work Schedule Non-associated employees may elect any alternative work schedule approved by the City Manager or designee. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A. Health Insurance 1. Medical, Dental and Vision Insurance The City shall continue to make group medical, dental and vision benefits available to all Non-Associated employees. 2. City and Employee Paid Health Insurance The City and the employee shall pay for health insurance premiums for employees and qualified dependent(s) effective the first of the month following the employee's hire date. The employee payroll deduction for premium contributions shall be deducted on a pre-tax basis. Such deductions shall be aligned with the effective date of coverage and the ending date of coverage upon employment separation. The employee's payroll deduction amount shall begin no later than the beginning of the first full pay period following the effective date of coverage and pro-rated for coverage through the end of the month in which employment was separated. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB -659- Item 25. - 8 HB -185-Item 8. - 23 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION i. Health Plan Employee and Employer Contributions Chart for Non-Safety Classifications in EXHIBIT 1 City of Huntington Beach 2016 Health Premiums and Contributions Effective pay period following final City Council approval Non -Associated/Non -Safety Plan IJ Tier Mo thly Pre p m ium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution Kaiser Single 466.65 466.65 0.00 0.00 Two-Party 1,022.11 974.36 47.75 22.04 Family 1,343.90 1,170.04 173.86 80.24 Blue Shield HMO Single 671.00 640.76 30.24 13.96 Two-Party 1,466.00 974.36 491.64 226.91 Family 1,896.00 1,170.04 725.96 335.06 Blue Shield PPO Single 736.00 736.00 0.00 0.00 Two-Party 1,555.00 1,135.78 419.22 193.49 Family 1,927.00 1,314.31 612.69 282.78 Delta Dental PPO Single 58.10 45.02 13.08 6.04 Two-Party 108.60 85.91 22.69 10.47 Family 143.20 122.18 21.02 9.70 Delta Care HMO Single 30.11 30.11 0.00 0.00 Two-Party 51.19 51.19 0.00 0.00 Family 78.29 78.29 0.00 0.00 VSP Vision Single 25.12 0.00 25.12 11.59 Two-Party 25.12 0.00 25.12 11.59 Family 25.12 0.00 25.12 11.59 Medical Opt-Out: $466.65 per month ($215.38 bi-weekly) ii. "Safety Member" Health Premiums - Employer Contribution Employees that are classified as "safety member" by the California Public Employees' Retirement System (CalPERS) may have access to the medical plans offered by CalPERS as contracted by the City. In accordance with eligibility provisions, the Police Chief and the Fire Chief may elect to enroll in the CalPERS health insurance program offered by the City. The City's maximum monthly employer contributions for the CalPERS health insurance program is set forth in the current City of Huntington Beach Non- Associated Safety Health Premiums and Contributions Chart. The amounts listed therein include the mandated Public Employees' Medical and Hospital Care Act (PEMHCA) contribution. Item 25. - 9 "A" to Non-Associated Resolution No. 2016-50 1113 -660 HB -186-Item 8. - 24 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION iii. Employees shall not be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. iv. Future Premiums The City "caps" its contributions toward monthly group medical, dental and vision plan premiums by category (EE, EE + 1, and EE + 2 or more) as outlined in sections i and ii above. The City agrees to increase the contribution toward monthly group medical by $200 per plan, per tier, effective following City Council approval of this resolution. The employee and employer contributions rates set forth in sections i and ii above shall remain in effect in 2017 and beyond unless otherwise modified by a successor Non-Associated Resolution. Employee and City Contributions subject to change as a result of City Council approval. The City's contribution caps for dental and vision in effect as of August 1, 2014 shall not be increased. The City's contribution caps will remain in place, even if premium increases result in these additional costs being borne by the employee. 3. Medical Cash Out If an employee is covered by a medical program outside of a City-provided program (evidence of which must be supplied to Human Resources), the employee may elect to discontinue City medical coverage and receive the monthly value of the City's contribution to the lowest cost employee-only medical plan paid bi-weekly. 4. Section 125 Plan Employees shall be eligible to participate in a City-approved Section 125 Flexible Spending Account Plan the same as all other eligible employees, as provided by IRS law. This plan allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. B. Life and Accidental Death and Dismemberment Insurance Each Non-Associated employee shall be provided with $50,000 life insurance and $50,000 accidental death and dismemberment insurance paid for by the City. Each employee shall have the option, at his/her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the City's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Long-Term Disability Insurance This program provides benefits for each incident of illness or injury after a waiting period of thirty (30) calendar days during which the Non-Associated employee may use accumulated sick leave, general leave, executive leave pay. Subsequent to the thirty-(30) day waiting period, the employee will be covered by an insurance plan paid for by the City providing sixty-six and two- thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury or illness shall be to age sixty-five (65). Exhibit "A" to Non-Associated Resolution No. 2016-50 HB -661- Item 25. - 10 HB -187-Item 8. - 25 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability is defined as: "The inability to perform all of the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation, for which he/she is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Human Resources Department. D. City-Paid Physical Examinations Non-Associated employees shall be provided, once every two years, with a City-paid physical examination comparable to the current pre-placement class physical examination or reimbursed the amount authorized for said physical examination. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. Said exam shall be comprehensive in nature and shall include: 1. A complete medical history, physical exam and review of results by physician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Miscellaneous When a Non-Associated employee is on a leave of absence without pay for reason of medical disability, the City shall maintain the City-paid insurance premiums during the period the employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24) months. F. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy Plan Employees who retire from the City after January 1, 2004, and are granted a retirement allowance by the California Public Employees' Retirement System and are not eligible for the City's Retiree Subsidy Medical Plan may choose to participate in City-sponsored medical insurance plans until the first of the month in which they turn age sixty-five (65). The retiree shall pay the full premium for City-sponsored medical insurance for themselves and/or qualified dependents without any City subsidy. Employees who retire from the City and receive a retirement allowance from the California Public Employees' Retirement System and are not eligible for the City's Retiree Subsidy Medical Plan and choose not to participate in City-sponsored medical insurance upon retirement permanently lose eligibility for this insurance. However, if a retiree who is not eligible for the City's Retiree Subsidy Medical Plan chooses not to participate in City-sponsored medical insurance plans because the retiree has access to other group medical insurance, and subsequently loses eligibility for that group medical insurance, the retiree and their qualified dependents will have access to City-sponsored medical insurance plans reinstated. Item 25. - "to Non-Associated Resolution No. 2016-50 HB -662 HB -188-Item 8. - 26 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). G. Post-65 Supplemental Medicare Coverage Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in City-sponsored medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in City-sponsored medical insurance plans that are supplemental to Medicare, after a contract is in place between the City and a health insurance provider. A retiree or qualified dependent must choose to participate in City-sponsored medical insurance plans that are supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in City-sponsored medical insurance plans that are supplemental to Medicare for themselves or qualified dependents without any City subsidy. Retirees or qualified dependents, upon turning age 65, who choose not to participate in the City-sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for t this insurance. SECTION IV — RETIREMENT A. Benefits 1. Self-Funded Supplemental Retirement Benefit In the event a Non-Associated employee member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees' Retirement law, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone as provided in California Government Code sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member (Non- Associated employee), shall be payable by the City during the life of the member, and upon that member's death, the City's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 2. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the City's group health insurance program at the equivalent of the City's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB 663 Item 25. - 12 HB -189-Item 8. - 27 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. As an alternative to the benefit described in paragraph IV.A.2.a above, the City will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. B. Public Employees' Retirement System Contributions and Reporting 1. Miscellaneous Members a. The City shall provide all miscellaneous employees described as "classic members by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain retirement program commonly known and described as the "2.5% at age 55 plan" which is based on the retirement formula as set forth in the California Public Employees' Retirement System (CalPERS), Section 21354 of the California Government Code. b. Miscellaneous bargaining unit "classic members" shall pay to CalPERS as part of the required member retirement contribution eight percent (8%) of pensionable income. This provision shall not sunset. c. The City shall contract with CalPERS to have retirement benefits calculated based upon the "classic" employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this resolution. e. For "New" Members within the meaning of the California Public Employees' Pension Reform Act of 2013. 1) New Members shall be governed by the two percent at age 62 (2% @ 62) retirement formula set forth in Government Code section 7522.20. 2) Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. 3) Effective January 1, 2013, "new" members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the normal cost as established by CalPERS. 2. Safety Members a. The City shall provide all safety employees described as "classic" members by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain retirement program commonly known and described as the "3% at age 50 plan" which is based on the retirement formula as set forth in the California Public Employees' Retirement System (CalPERS), Section 21362.2 of the California Government Code. Item 25. - 13 "to Non-Associated Resolution No. 2016-50 HB -664 HB -190-Item 8. - 28 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. All safety employees described as "classic" members shall pay to CalPERS as part of the required member retirement contribution nine percent (9%) of pensionable income. This provision shall not sunset. c. The City shall contract with CalPERS to have retirement benefits calculated based upon the "classic" employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this resolution. e. For "New" Members within the meaning of the California Public Employees' Pension Reform Act of 2013. 1) New Members shall be governed by the two and seven tenths percent at age 57 (2.7% @ 57) retirement formula set forth in Government Code section 7522.25(d) 2) Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of retirement, or some other 36 consecutive month period designated by the member. 3) Effective January 1, 2013, "new" members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the normal cost, as established by CalPERS. 3. IRS Code Section 414(h)(2) The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. 4. Pre-Retirement Optional Settlement 2 Death Benefit Non-Associated employees shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 of the California Government Code when approved by the City Council. 5. Fourth Level of 1959 Survivor Benefits Non-Associated employees shall be covered by the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 of the California Government Code. 6. VEBA Plan Requirements a. Eligibility Defined Effective December 23, 2009, all eligible Unrepresented Management Employees with 25 years of continuous service to the City of Huntington Beach will participate in the Plan. An eligible employee is an employee who works twenty (20) or more hours per week and receives benefits. Exhibit "A" to Non-Associated Resolution No. 2016-50 HI3 -665- Item 25. - 14 HB -191-Item 8. - 29 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION b. Employee Contributions c. Leave Payout Each eligible unrepresented management employee shall designate all leave payouts to be rolled over to his/her VEBA Plan account based on the established range upon separation from City employment. d. Participant Account A separate account is maintained for each contributing eligible unrepresented management employee, which documents the employee's contributions and disbursements. Contributions to a VEBA plan account as well as any disbursements to cover nonreimbursed, post-tax medical care expenses are both tax free. Eligible benefits subject to reimbursement by the Plan shall be limited to long-term care expenses and nonreimbursed medical premiums, co-pays, prescribed drug expenses and other medical care costs as that term is defined by the Internal Revenue Code Section 213. e. Administrative Fees Any Plan administrative fees will be deducted from interest on the total Plan investments. An eligible unrepresented management employee's Plan account is subject to a monthly administrative fee for expenses related to recordkeeping, claims processing, and claims reimbursement. The fee will first be deducted from interest on total plan investments, and then deducted, if necessary, from the employee's individual account. f. Dispute Resolution This Resolution and any disputes arising under or in connection with this Resolution shall not be subject to any dispute resolution procedures in the City's Personnel Rules, nor shall this Resolution and any such dispute relating thereto be subject to the jurisdiction of the City's Personnel Board for any reason whatsoever. g. Indemnification All Unrepresented Management Employees agree to indemnify and hold the City of Huntington Beach harmless against any claims made of any nature and against any suit instituted against the City arising from this Resolution, including, but not limited to, claims arising from an employee's participation in VEBA or from any salary reduction initiated by the City for VEBA contributions. Item 25. - 15 ." to Non-Associated Resolution No. 2016-50 HB -666 HB -192-Item 8. - 30 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION SECTION V — LEAVE BENEFITS A. General Leave 1. Accrual Employees will accrue General Leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. General leave for non-associated employees shall be accrued as follows: Years of Service Annual General Leave Allowance Biweekly General Leave Allowance First through Fourth Year 176 hours 6.77 Fifth through Ninth Year 200 hours 7.69 Tenth through Fourteenth Year 224 hours 8.62 Fifteenth Year and Thereafter 256 hours 9.85 2. Eligibility and Approval General leave must be pre-approved except for illness, injury or family sickness, which may require a physician's statement for approval. General leave accrued time is to be computed from hiring date anniversary. Employees shall not be permitted to take general leave in excess of actual time earned. Employees shall not accrue general leave in excess of six hundred forty (640) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Leave Benefit Entitlements The City shall comply with all State and Federal leave benefit entitlement laws. An eligible employee on an approved leave shall be allowed to use applicable earned Sick Leave, General Leave, or Executive Leave for family or personal health issues. For more information on employee leave options contact the Human Resources Department. 4. Conversion to Cash a. Pay Off at Termination An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. b. Conversion to Cash Two times during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred-twenty (120) general leave benefit hours per fiscal year. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB -667 Item 25. -16 HB -193-Item 8. - 31 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION c. One Week Minimum Vacation Requirement The City Manager may require certain positions which handle money or transfer funds to take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. d. Deferred Compensation Contribution at Time of Separation The value of any unused earned leave benefits may be transferred to deferred compensation at separation (including retirement), but only during the time that the employee is actively employed with the City. The latest opportunity for such transfer must be the beginning of the pay period prior to the employee's last day of employment. B. Holidays and Pay Provisions 1. Non-Associated employees shall receive the following legal holidays as of the first pay period following adoption of the Non-Associated Resolution paid in full per the employee's regularly scheduled work shift: (1) New Year's Day (January 1) (2) Martin Luther King Day (third Monday in January) (3) Presidents Day (third Monday in February) (4) Memorial Day (last Monday in May) (5) Independence Day (July 4) (6) Labor Day (first Monday in September) (7) Veteran's Day (November 11) (8) Thanksgiving Day (fourth Thursday in November) (9) The Friday after Thanksgiving (10) Christmas Day (December 25) 2. Any day declared by the President of the United States to be a national holiday or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. 3. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual No employee shall accrue sick leave. Item 25. - 17," to Non-Associated Resolution No. 2016-50 HB -668 HB -194-Item 8. - 32 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. Credit Employees assigned to Non-Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 4. Payoff at Termination a. Non Associated employees with continuous service with the City since November 20, 1978, shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused accumulated sick leave, up to a maximum of 720 hours of such accumulated sick leave. b. Non-Associated employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours, except as provided in paragraph V.C.2.c below. c. Except as provided in paragraph V.C.5.d below, no Non-Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. However, employees may utilize accumulated sick leave on the basis of "last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non-Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. To the extent that any such "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee had accumulated another 48 hours. Employee Exhibit "A" to Non-Associated Resolution No. 2016-50 HB 669- Item 25. - 18 HB -195-Item 8. - 33 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928.) D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. E. Voluntary Catastrophic Leave Donation Program Under certain conditions, an employee may donate leave time to another employee in need. The program is outlined in Exhibit 4. SECTION VI — RETIREE SUBSIDY MEDICAL PLAN An employee who has retired from the City shall be entitled to participate in the City-sponsored medical insurance plans in accordance with the Retiree Subsidy Medical Plan as outlined in Exhibit 2. Employees hired on or after December 1, 2009, shall not be eligible for this benefit. SECTION VII — MISCELLANEOUS A. Collection of Payroll Overpayments In the event that a payroll overpayment is discovered and verified, and considering all reasonable factors including the length of time that the overpayment was made and if and when the employee could have reasonably known about such overpayment, the City shall take action to collect from the employee the amount of overpayment(s). Such collection shall be processed by payroll deduction over a reasonable period of time considering the total amount of overpayment. In the event the employee separates from employment during the collection period, the final amount shall be deducted from the last payroll check of the employee. If applicable, the balance due from the employee shall be communicated upon employment separation if the last payroll check does not sufficiently cover the amount due the City. It shall be the responsibility of the employee and the City to periodically monitor the accuracy of compensation payments or reimbursements due to the possibility of a clerical oversight or error. The City reserves the right to also collect compensation overpayments caused by or the result of misinterpretation of a pay provision by non-authorized personnel. The interpretation of all pay provisions shall be administered by the City Manager or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05). Item 25. - 19' " to Non-Associated Resolution No. 2016-50 HB -670 HB -196-Item 8. - 34 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION B. Uniforms and CalPERS Reporting The City provides uniforms to active duty employees in the classifications of Police Chief and Fire Chief. These employees are required to wear a standard uniform for appearance, uniformity, and public recognition purposes. The City will report to the California Public Employees' Retirement System (CalPERS) the average annual cost of uniforms as special compensation for each eligible employee in accordance with Title 2, California Code of Regulations, Section 571(a)(5). Exhibit "A" to Non-Associated Resolution No. 2016-50 FIB 671- Item 25. -20 HB -197-Item 8. - 35 NON-ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 1 NON-ASSOCIATED EXECUTIVE MANAGEMENT SALARY SCHEDULE EFFECTIVE SEPTEMBER 24, 2016 - 2.0% Increase Job No. Description Pay Grade Starting Point Control Point High Point EXECUTIVE MANAGEMENT 0591 City Manager NA0591 NA NA 128.29 DEPARTMENT HEADS 0592 Assistant City Manager NA0592 85.82 95.51 106.32 0009 Director of Building & Safety NA0009 74.64 83.07 92.46 0014 Director of Community Services NA0014 74.64 83.07 92.46 0008 Director of Economic Development NA0008 74.64 83.07 92.46 0574 Director of Human Resources NA0574 74.64 83.07 _ 92.46 0479 Chief Information Officer NA0479 74.64 83.07 92.46 0007 Director of Library Services NA0007 69.94 77.85 86.66 0589 Community Development Director NA0589 80.82 89.97 100.13 0010 Director of Public Works NA0010 80,82 89.97 100.13 0518 Chief Financial Officer NA0518 80.82 89.97 100.13 0015 Fire Chief NA0015 85.82 106.31 95.51 0011 Police Chief NA0011 85.82 95.52 106.31 ELECTED OFFICIALS 0016 City Attorney NA0016 100.18 111.51 124.10 0017 City Clerk NA0017 69.94 77.85 86.66 ELECTED OFFICIALS PART-TIME 0018 City Treasurer - PART-TIME NA0018 74.64 83.07 92.46 *Annual Salary Not to Exceed $51,812 CONTRACT NON-DEPARTMENT HEAD Job No. Description Pay Grade A B C D E 0593 Chief Assistant City Attorney NA0593 71.05 74.96 79.08 83.43 88.01 Historical changes to Non-Associated position titles: Per Ordinance 3855 adopted on 1/19/10, Building & Safety Department duties were combined with the Planning Department creating a new position of Director of Planning and Building. Per Resolution 2010-106 adopted on 12/20/10 the City Treasurer was established as a part-time position. Per Ordinance 3906 adopted on 2/7/11 amended the title of City Administrator to City Manager. Per Ordinance 3959 adopted on 10/01/12, the position of Chief Assistant City Attorney was established. Per Resolution 2012-95 adopted on 12/17/12 the title of Deputy City Manager was changed to Assistant City Manager. Per Ordinance 4086 adopted 4/18/16: the position of Finance Director was changed to Chief Financial Officer, the Director of Information Services was changed to Chief Information Officer and the Director of Planning and Building was changed to Community Development Director. Item 25. - 21" to Non-Associated Resolution No. 2016-50 HB -672 HB -198-Item 8. - 36 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 2 RETIREE MEDICAL PLAN An employee who has retired from the City shall be entitled to participate in the City sponsored medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous full time City service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System. The City's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1 On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City's medical plans shall be governed by applicable plan document. 2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits 1. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits begins after an employee has completed ten (10) years of continuous full time service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules. Employees hired on or after December 1, 2009 shall not be eligible for this benefit. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 3. Marital Status — Married retirees eligible for benefits under the Retiree Medical Subsidy Plan may each receive the benefit earned pursuant to Section 4 — Exhibit "A" to Non-Associated Resolution No. 2016-50 HB -673- Item 25. - 22 HB -199-Item 8. - 37 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Maximum Monthly Subsidy Payments, whether enrolled individually as the plan enrollee or whether enrolled as a dependent on any City-sponsored medical plan. a. In the case where a retiree is married to a City employee (active or retired) who is not an unrepresented/non-associated employee or retiree, this provision shall remain applicable. b. This provision shall apply to State of California registered domestic partners the same as married spouses. 4. Maximum Monthly Subsidy Payments Payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. All retirees, including those retired as a result of disability whose number of years of service prior to retirement, exceeds ten (10) years of continuous full time service, shall be entitled to maximum monthly payment of premiums by the City for each year of completed City service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Item 25. - 23' to Non-Associated Resolution No. 2016-50 HB -674 HB -200-Item 8. - 38 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION MISCELLANEOUS PROVISIONS A. Eligibility: 1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Human Resources Department shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. B. Benefits: 1. The Retiree Subsidy Medical Plan includes any medical plan offered by the City to active and/or retired unrepresented/non-associated employees and retirees. 2. City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only for Medicare. 3. Premium payments are to be received at least one month in advance of the coverage period. C. Subsidies: 1. The subsidy payments will pay for: a. The Retiree Subsidy Medical Plan. b. HMO. c. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. b. Any other employee benefit plan. c. Any other commercially available benefit plan. d. Medicare supplements D. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB 675- Item 25. - 24 HB -201-Item 8. - 39 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching age 65. c. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application," whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2. See provisions under "Benefits," "Subsidies," and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. 3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non- payment of premium by means of a certified letter from Employee Benefits in accordance with provisions of the Non-Associated Resolution. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. Item 25. - 25; to Non-Associated Resolution No. 2016-50 HB -676 HB -202-Item 8. - 40 NON-ASSOCIATED EMPLOYEE PAY AND BENEFIT PROVISIONS EXHIBIT 3 - 9/80 WORK SCHEDULE This work schedule is known as "9/80". The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. A Forty (40) Hour FLSA Work Week The actual FLSA workweek is from Friday at mid-shift (p.m.) to Friday at mid-shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA workweek is 12:00 noon Friday. B. Two Week Pay Period The pay period for employees starts Friday mid-shift (p.m.) and continues for fourteen (14) days until Friday mid-shift (a.m.). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the "A" schedule and the "B" schedule, based upon the departmental needs. For identification purposes, the "A" schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, "off on payday", the "B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on payday". An example is listed below: AM PM AM PM AM PM FFSSMTWThFFSSMTWThFF A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - Exhibit "A" to Non-Associated Resolution No. 2016-50 HB -677- Item 25. - 26 HB -203-Item 8. - 41 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION D. A/B Schedule Changes FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor or City Manager approval. E. Emergencies All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, or designee may require such service from any of said employees. LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave — As stated in the Non-Associated Resolution. 2. Sick Leave — As stated in the Non-Associated Resolution. 3. Executive Leave — As stated in the Non-Associated Resolution. 4. Bereavement Leave — As stated in the Non-Associated Resolution. 5. Holidays - As stated in the Non-Associated Resolution. 6. Jury Duty — The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added compensation. Item 25. - 27' to Non-Associated Resolution No. 2016-50 HB -678 HB -204-Item 8. - 42 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION EXHIBIT 4- VOLUNTARY CATASTROPHIC LEAVE DONATION Guidelines 1. Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either return to work, long-term disability, or medical retirement. Permanent employees who accrue vacation, general leave or compensatory time may donate such leave to another permanent employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The leave-sharing Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of vacation, general, or sick leave. 2. Definitions Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the employee or an employee's family member. Family Member - For the purposes of this policy, the definition of family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner). 3. Eligible Leave Accrued compensatory, vacation or general leave hours may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Permanent employees who accrue vacation or general leave may donate such hours to eligible recipients. Compensatory time accrued may also be donated. An eligible recipient is an employee who: • Accrues vacation or general leave; • Is not receiving disability benefits or Workers' Compensation payments; and • Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's regular salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted into a dollar amount based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient's hourly wage. An employee needing leave will complete a Leave Donation Request Form and submit it to the Department Director for approval. The Department Director will forward the form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB 679- Item 25. -28 HB -205-Item 8. - 43 NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Employees wanting to make donations will submit a Leave Donation Form to the Finance Department (payroll). All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. 6. Other Please contact the Human Resources Department with questions regarding employee participation in this program. Item 25.- 29" to Non-Associated Resolution No. 2016-50 HB -680 HB -206-Item 8. - 44 End donation date will bridge to: E Long Term Disability —1 Medical Retirement beginning ri Length of FMLA leave ending Return to work Human Resources Director Signature: D epartment Director Signature of Support: Human Resources Department Use Only NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated vacation, general leave or compensatory time. MY SIGNATURE CERTIFIES THAT: • A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and • I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type: Last, First, MI) Work Phone: Department: Job Title: Employee ID#: Requester Signature: Date: Please submit this form to the Human Resources Office for processing. Exhibit "A" to Non-Associated Resolution No. 2016-50 HB 681 Item 25. - 30 HB -207-Item 8. - 45 Donor Name: (Please Print or Type: Last, First, MI) 'Work Phone :: Donor Job Title: Type of Accrued Leave: ,r7 Vacation Compensatory Time in General Leave Number of Hours I wish to Donate: Hours of Vacation Hours of Compensatory Time Hours of General Leave NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: IDate: Please submit to the Finance Department. Item 25. 31' to Non-Associated Resolution No. 2016-50 HB -682 HB -208-Item 8. - 46 Res. No. 2016-50 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 18, 2016 by the following vote: AYES: NOES: OUT OF ROOM: ABSTAIN: O'Connell, Sullivan, Hardy, Delgleize Posey, Peterson Katapod is None 94.244,444) City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California HB -209-Item 8. - 47 Dept. ID Ad-18-003 Page 1 of 2 Meeting Date: 1/16/2018 Statement of Issue: The contract between the City of Huntington Beach and the County of Orange (OC Animal Care) requires that each city adopt municipal animal control codes that are identical to County animal control ordinances. This Council action will amend Section 7.04.010 and repeal section 7.04.020 and Chapter 7.08 of the City’s Municipal Code pertaining to animal control. Financial Impact: There is no fiscal impact. Recommended Action: Approve for introduction Ordinance No. 4147, “An Ordinance of the City of Huntington Beach Amending Section 7.04.010 and Repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code Relating to the Adoption of County Animal Control Ordinances.” Alternative Action(s): Do not approve the introduction of the ordinance and direct staff accordingly. Analysis: The City currently contracts with Orange County Animal Care for animal control services. As part of the contract, the City is required to adopt municipal animal control codes that are identical to County animal control ordinances. This enables the County the ability to provide consistent animal control enforcement throughout the entire service area. In turn, this also provides more effective enforcement. OC Animal Care will only enforce those municipal codes that are identical to County animal control ordinances, in addition to certain state codes relating to animal care and control. Each city is responsible for enforcing any unique animal control provisions its municipal code may contain. For the City of Huntington Beach, Chapter 7.14 Performance of Wild or Exotic Animals for Public Entertainment or Amusement is the only section of the Code that is unique and is enforced by the City of Huntington Beach and not OC Animal Care. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 1/16/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Antonia Graham, Assistant to the City Manager SUBJECT: Approve for introduction Ordinance No. 4147 amending Section 7.04.010 and repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code (HBMC) relating to the adoption of County Animal Control Ordinances Approved for introduction 1/16/2018 Vote: 7-0 HB -210-Item 9. - 1 Dept. ID Ad-18-003 Page 2 of 2 Meeting Date: 1/16/2018 In early November, the County reached out to all contract cities requesting cities to amend their Municipal Codes to reflect recent changes in the County Code. The amendments made by the County were made to improve efficiencies and outcomes, and were supported by their partners in the animal rights community. The amendments improve the Vicious Dog Program by providing for the use of independent hearing officers; adding the ability to ban owners of the vicious dogs from owning dogs for up to three years; clarifying provocation and other terms for identifying aggressive dogs; and removing Potentially Dangerous Dog designations following a specified time period of non-incidence. This program was also brought into accord with recent state law changes eliminating automatic designation for animals seized from convicted violators of fighting dog statutes. The Barking Dog program has also been expanded to include nuisances from animals other than dogs. Additionally, amendments to other County ordinances clarify language relating to animal permits, kennel permits, and mobile grooming licenses. These changes provide clearer direction to citizens as to the applicability of the permits, particularly with respect to animal rescues, and provide clearer cost recovery for OC Animal Care. This Council action introduces an ordinance that will codify the changes made by the Orange County Board of Supervisors to ensure uniformity with the City’s Municipal Code and the County’s animal control codes. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain public safety Improve quality of life Attachment(s): 1. Ordinance No. 4147 “An Ordinance of the City of Huntington Beach Amending Section 7.04.010 and Repealing Section 7.04.020 and Chapter 7.08 of the Huntington Beach Municipal Code Relating to the Adoption of County Ordinances” HB -211-Item 9. - 2 HB -212-Item 9. - 3 HB -213-Item 9. - 4 HB -214-Item 9. - 5 HB -215-Item 9. - 6 HB -216-Item 9. - 7 HB -217-Item 9. - 8 HB -218-Item 9. - 9 HB -219-Item 9. - 10 HB -220-Item 9. - 11 HB -221-Item 9. - 12 Dept. ID PW 18-001 Page 1 of 2 Meeting Date: 2/5/2018 Statement of Issue: The Urban Water Management Planning Act of 1983 requires that the City adopt an Urban Water Management Plan every five years. The UWMP was adopted by City Council in 2016, and submitted to the California Department of Water Resources (DWR) for their approval. Subsequently, minor revisions were required by DWR resulting in Amendments that need to be adopted by City Council. Financial Impact: Not applicable. Recommended Action: Adopt Resolution 2018-03, “A Resolution of the City Council of the City of Huntington Beach Adopting the Amendments to the Adopted 2015 Urban W ater Management Plan Pursuant to AB797 and SB1011.” Alternative Action(s): Do not adopt the Amendments in part or as a whole and instruct Staff on how to proceed. Analysis: The Urban Water Management Planning Act of 1983 mandates all water suppliers with more than 3,000 customers or supplying more than 3,000 acre-feet of water annually must prepare and adopt an Urban Water Management Plan (UWMP) every five years. Huntington Beach currently supplies water to approximately 200,000 residents, over 53,000 metered connections, and around 25,000 acre-feet of water annually. The adopted UWMP focuses on water supply and demand management for the City. It incorporates and references the 2015 UWMP of the Metropolitan Water District of Southern California (MWD) and the Municipal Water District of Orange County (MWDOC). MWD is the major supplemental water supplier to Southern California providing water from the Colorado River and State Water Project. MWDOC is a member agency of MWD and serves as the City’s wholesaler of MWD water. Demographic and water use projections are presented in five-year increments out to 2040. In general, the plan focuses on projected water supply versus demand and is intended to act as a long-term planning tool for the City’s water use efficiency efforts. The plan also examines the potential effect on water supplies during single and multiple dry-year scenarios. Because of Huntington Beach’s groundwater and imported connection capacities, it is estimated that 100% of demand can be met under all hydrological scenarios. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 2/5/2018 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: Adopt Resolution No. 2018-03 adopting Amendments to the 2015 Urban Water Management Plan (UWMP) HB -222-Item 10. - 1 Dept. ID PW 18-001 Page 2 of 2 Meeting Date: 2/5/2018 The City last adopted the UWMP on June 20, 2016, which was submitted to DWR for review and approval. DWR completed their review of the UWMP and have since requested minor changes that require adoption by the City. The attached Amendments show all changes to the 2015 UWMP, and include a summary of all changes made. Environmental Status: Not applicable. Strategic Plan Goal: Non-Applicable – Administrative Item Attachment(s): 1. Resolution No. 2018-03, “A Resolution of the City Council of the City of Huntington Beach Adopting the Amendments to the Adopted 2015 Urban W ater Management Plan Pursuant to AB797 and SB1011,” including Exhibit A – Amendments to 2015 Urban Water Management Plan 2. Power Point Presentation HB -223-Item 10. - 2 HB -224-Item 10. - 3 City of Huntington Beach Amendments to 2015 Urban Water Management Plan January 2018 City of Huntington Beach Amendments to 2015 Urban Water Management Plan (UWMP) HB -225-Item 10. - 4 Contents Revisions to Section 3.3.1 – States that the basin is not adjudicated to address CWC 10631 (b) (2). Revisions to Section 3.3.3 – States that the Alamitos barrier is outside of the City’s service area. Revisions to Section 5.2.3 Table 5-1 – Provides an outline of specific water supply conditions applicable to each stage of water supply reduction as well as assigning percent reduction in water supply to each stage up to a 50 percent reduction to address CWC 10632 (a). Revisions to Section 5.5.3 Table 5-4 – Includes consumption reduction methods to address CWC 10632 (a) (5) and provide context for the stages for water supply reduction. Revisions to DWR Table 6-4 and Table 6-5 – Includes recycled water used at the Talbert Barriers and the portion of water that will be captured through the OCWD Phase III expansion to address CWC 10633 (a)(b). Revisions to Section DWR Table 6-5 – Includes the amount from Barriers in 2010 to address CWC 10633 (a)(b). Revisions to Section 6.2 and DWR Table 6.3 – Clarifies the agency coordination with OCSD and that wastewater is treated within the service area. Specifies the volume of wastewater collected in the service area to address CWC 10633 (a)(b). Addition of Section 8.4 – Provides an outline of the steps the City is taking to adopt the Amended UWMP including publicizing a public hearing, holding a public hearing, adopting the UWMP, and submitting the UWMP to the appropriate agencies. Appendices Appendix B – Update DWR standardized tables 6-2, 6-3, 6-4, 6-5, 8-1, and 8-3. Addition of Appendix E-1 – Public Hearing Notice for Amended UWMP. Addition of Appendix F-1 – Resolution of the Amended UWMP adoption (Pending City Council Approval). HB -226-Item 10. - 5 Revisions to Main UWMP Document HB -227-Item 10. - 6 Basin Characteristics The OC Basin underlies the northerly half of Orange County beneath broad lowlands. The OC Basin is not an adjudicated basin and is managed by OCWD. It covers an area of approximately 350 square miles, bordered by the Coyote and Chino Hills to the north, the Santa Ana Mountains to the northeast, and the Pacific Ocean to the southwest. The OC Basin boundary extends to the Orange County-Los Angeles Line to the northwest, where groundwater flows across the county line into the Central Groundwater Basin of Los Angeles County. The total thickness of sedimentary rocks in the OC Basin is over 20,000 feet, with only the upper 2,000 to 4,000 feet containing fresh water. The Pleistocene or younger aquifers comprising this Basin are over 2,000 feet deep and form a complex series of interconnected sand and gravel deposits. The OC Basin’s full volume is approximately 66 MAF. Groundwater Recharge Facilities Recharging water into the OC Basin through natural and artificial means is essential to support pumping from the OC Basin. Active recharge of groundwater began in 1949, in response to increasing drawdown of the OC Basin and consequently the threat of seawater intrusion. The OC Basin’s primary source of recharge is flow from the Santa Ana River, which is diverted into recharge basins and its main Orange County tributary, Santiago Creek. Other sources of recharge water include natural infiltration and recycled water. Today OCWD owns and operates a network of recharge facilities that cover 1,067 acres. An increase in recharge capacity of greater than 10,000 AFY occurred with the addition of the La Jolla Recharge Basin which came online in 2008. The La Jolla Recharge Basin is a 6-acre recharge basin. One of OCWD’s primary efforts has been the control of seawater intrusion into the OC Basin, especially via the Talbert and Alamitos seawater intrusion barriers. The Talbert and Alamitos seawater intrusion barriers are shown on Figure 3-3. Some of the injection wells from the Talbert intrusion barrier are located within the City’s service area, however, the Alamitos barrier is outside of the City’s service area. City of Huntington Beach As defined in Chapter 14.18 of the City’s Municipal Water Code, a water shortage is declared based on one or more of the following conditions: • A general water supply shortage due to increased demand or limited supplies • A major failure of the supply, storage, and distribution facilities of Metropolitan or of the City • A local or regional disaster, which limits the water supply The City’s Water Management Program is defined in Chapter 14.18 of the Huntington Beach Municipal Code. This program establishes a staged water conservation program that will encourage reduced water consumption within the City through conservation, enable effective water supply planning, assure reasonable and beneficial use of water, prevent waste of water, and maximize the efficient use of water within the City. Along with permanent water conservation requirements, the City’s Water Conservation Program consists of three stages to respond to a reduction in potable water available to the City for distribution to its customers. For the first two stages, the City Council determines, in its sole discretion, that due to drought or other water supply conditions, a water supply shortage or threatened shortage exists and a consumer demand reduction is necessary to make more efficient use of water and appropriately respond to existing water conditions. The third stage is declared by the City Council as a water shortage emergency and residents and businesses are notified that a significant reduction in consumer demand is necessary to maintain sufficient water suppliers for public health and safety. A HB -228-Item 10. - 7 summary of the stages of water shortage is displayed in Table 5-1 (Huntington Beach, Chapter 14.18 Municipal Code). Conditions prevailing in the City area require that available water resources be put to maximum beneficial use to the extent possible. The waste, unreasonable use, or unreasonable method of use of water should be prevented and water conservation and water use efficiency should be encouraged with a view toward maximizing reasonable and beneficial use in the interests of the people of the City and for the public welfare. Preservation of health and safety is a top priority for the City. Table 5-1: Stages of Water Shortage Contingency Plan Retail Stages of Water Shortage Contingency Plan Stage Complete Both Percent Supply Reduction1 Water Supply Condition 1 Up to 10% The City may determine that a "mild" water supply shortage or threatened shortage exists and consumer demand reduction necessary to respond to existing water conditions on a voluntary basis. 2 Up to 20% The City may determine that a "moderate" water supply shortage or threatened shortage exists and consumer demand reduction necessary to existing water conditions including limiting days of irrigation on a mandatory basis. 3 Up to 50% An "Emergency" condition. Exists when the City declares a water shortage emergency and notifies its residents and businesses that significant reduction in consumer demand is necessary to maintain water supplies for public health, safety, and welfare. 1 One stage in the Water Shortage Contingency Plan must address a water shortage of 50%. NOTES: HB -229-Item 10. - 8 Consumption Reduction Methods Table 5-4 lists the consumption reduction methods that will be used to reduce water use in restrictive stages. Table 5-4: Stages of Water Shortage Contingency Plan - Consumption Reduction Methods Retail Only: Stages of Water Shortage Contingency Plan - Consumption Reduction Methods Stage Consumption Reduction Methods by Water Supplier Additional Explanation or Reference All Offer Water Use Surveys Program administered by MWDOC All Provide Rebates on Plumbing Fixtures and Devices Program administered by MWDOC offers rebates to CII and residential customers on devices such as laminar flow restrictors, dry vacuum pumps, premium high efficiency toilets. All Provide Rebates for Landscape Irrigation Efficiency Program administered by MWDOC offers rebates to CII and residential customers on devices such as spray nozzles, drip irrigation, smart irrigation timers, soil moisture sensor, in-stem flow regulator. All Provide Rebates for Turf Replacement Program administered by MWDOC offers turf removal rebates to CII and residential customers. 3 Moratorium or Net Zero Demand Increase on New Connections The city will limit or withhold issuance of building permits which require new or expanded water service 3 Moratorium or Net Zero Demand Increase on New Connections No new potable water service will be provided except under special circumstances by the City 3 Moratorium or Net Zero Demand Increase on New Connections The City will suspend consideration of annexations to its service area NOTES: 6.2 Wastewater Description and Disposal The City operates and maintains the local sewer collection pipes that feed into the OCSD's trunk sewer system to convey wastewater to OCSD's Plant No. 2. OCSD is responsible for the treatment and disposal of all the City’s wastewater. The City's sewer system includes 360 miles of sewer lines ranging from 6 inches to 30 inches in diameter, 10,000 manholes and 27 lift stations. OCSD has an extensive system of gravity flow sewers, pump stations, and pressurized sewers. OCSD Plant No. 2 has a capacity of 312 MGD with a 120-inch diameter ocean outfall that extends 4 miles off the coast of the City. There is also a 78-inch diameter emergency outfall that extends 1.3 miles off the coast. HB -230-Item 10. - 9 Residential homes northwest of Sunset Beach, in the area known as Surfside, have sewer flow that goes to the Sunset Beach Sanitary District, which eventually connects into the City’s sewer collection system. The Sunset Aquatic Marina also sends its sewer flow to the City’s sewer collection system. Lastly, a property at the northeast corner of Beach Boulevard and Edinger Avenue is within the City of Westminster, but their sewage also goes to the City. Table 6-1 summarizes the wastewater collected by the City and transported to OCSD's Plant No. 2 in 2015. Table 6-1: Wastewater Collected Within Service Area in 2015 (AF) Retail: Wastewater Collected Within Service Area in 2015 Wastewater Collection Recipient of Collected Wastewater Name of Wastewater Collection Agency Wastewater Volume Metered or Estimated? Volume of Wastewater Collected in 2015 Name of Wastewater Treatment Agency Receiving Collected Wastewater Treatment Plant Name Is WWTP Located Within UWMP Area? City of Huntington Beach Estimated 18,197 OCSD Plant No. 2 Yes Total Wastewater Collected from Service Area in 2015: 18,197 NOTES: Estimated at 65% of 2015 potable water consumption. This includes the wastewater from Surfside, Sunset Aquatic Marina, and City of Westminster. HB -231-Item 10. - 10 8.4 UWMP Amendment Process Resubmitting UWMP The City is required by DWR to resubmit the 2015 UWMP Amendments to address certain sections of the California Water Code that were not covered by the original plan. After making edits to the UWMP, the City will go through the adoption process once more. Table 8-3 presents a summary of the steps by the City to adopt the 2015 UWMP Amendments. Table 8-3: External Coordination and Outreach for Resubmitting UWMP External Coordination and Outreach Date Reference Public notification 01/18/18 01/25/18 Appendix E-1 Held public hearing TBD Appendix E-1 Adopted UWMP Amendment TBD Appendix F-1 Submitted UWMP to DWR TBD - Submitted UWMP to the California State Library and city or county within the supplier’s service area TBD - Made UWMP available for public review TBD - The City will publish a public hearing notification in the local newspaper for the UWMP Amendments which can be viewed in Appendix E-1. Subsequent to public notifications, the general public will have opportunities to review the amendments. At the public hearing, the City Council will review and approve the 2015 UWMP Amendments. Appendix F-1 includes the resolution to approve the 2015 UWMP Amendments. The City will submit the 2015 UWMP Amendments to DWR, California State Library, and County of Orange. The 2015 UWMP Amendments will be available for public review no later than 30 days after filing with DWR. HB -232-Item 10. - 11 Revisions to Appendix B DWR Standardized Tables HB -233-Item 10. - 12 Table 6-2 Retail: Wastewater Collected Within Service Area in 2015 There is no wastewater collection system. The supplier will not complete the table below. Percentage of 2015 service area covered by wastewater collection system (optional) Percentage of 2015 service area population covered by wastewater collection system (optional) Wastewater Collection Recipient of Collected Wastewater Name of Wastewater Collection Agency Wastewater Volume Metered or Estimated? Drop Down List Volume of Wastewater Collected in 2015 Name of Wastewater Treatment Agency Receiving Collected Wastewater Treatment Plant Name Is WWTP Located Within UWMP Area? Drop Down List Is WWTP Operation Contracted to a Third Party? (optional) Drop Down List City of Huntington Beach Estimated 18,197 OCSD Plant No. 2 Yes Total Wastewater Collected from Service Area in 2015: 18,197 NOTES: Estimated at 65% of 2015 potable water consumption. This includes the wastewater from Surfside, Sunset Aquatic Marina, and City of Westminster. HB -234-Item 10. - 13 Table 6-3 Retail: Wastewater Treatment and Discharge Within Service Area in 2015 No wastewater is treated or disposed of within the UWMP service area. The supplier will not complete the table below. Wastewater Treatment Plant Name Discharge Location Name or Identifier Discharge Location Description Wastewater Discharge ID Number (optional) Method of Disposal Drop down list Does This Plant Treat Wastewater Generated Outside the Service Area? Treatment Level Drop down list 2015 volumes Wastewater Treated Discharged Treated Wastewater Recycled Within Service Area Recycled Outside of Service Area Add additional rows as needed OCSD Plant No. 2 Ocean Ocean Outfall Yes Secondary, Disinfected - 2.2 75,000 75,000 0 0 Total 75,000 75,000 0 0 NOTES: All treated wastewater from Plant No. 2 discharges to the ocean (OCSD, Design Consultant Open House Presentation,2016 https://www.ocsd.com/Home/ShowDocument?id=18737) HB -235-Item 10. - 14 Table 6-4 Retail: Current and Projected Recycled Water Direct Beneficial Uses Within Service Area Recycled water is not used and is not planned for use within the service area of the supplier. The supplier will not complete the table below. Name of Agency Producing (Treating) the Recycled Water: OCSD and OCWD Name of Agency Operating the Recycled Water Distribution System: OCWD Supplemental Water Added in 2015 N/A Source of 2015 Supplemental Water N/A Beneficial Use Type These are the only Use Types that will be recognized by the DWR online submittal tool General Description of 2015 Uses Level of Treatment Drop down list 2015 2020 2025 2030 2035 2040 (opt) Agricultural irrigation Landscape irrigation (excludes golf courses) Golf course irrigation Commercial use Industrial use Geothermal and other energy production Seawater intrusion barrier Talbert Barrier Advanced 8,061 8,061 9,080 9,080 9,080 9,080 Recreational impoundment Wetlands or wildlife habitat Groundwater recharge (IPR) Surface water augmentation (IPR) HB -236-Item 10. - 15 Table 6-4 Retail: Current and Projected Recycled Water Direct Beneficial Uses Within Service Area Recycled water is not used and is not planned for use within the service area of the supplier. The supplier will not complete the table below. Name of Agency Producing (Treating) the Recycled Water: OCSD and OCWD Name of Agency Operating the Recycled Water Distribution System: OCWD Supplemental Water Added in 2015 N/A Source of 2015 Supplemental Water N/A Beneficial Use Type These are the only Use Types that will be recognized by the DWR online submittal tool General Description of 2015 Uses Level of Treatment Drop down list 2015 2020 2025 2030 2035 2040 (opt) Direct potable reuse Other Type of Use Total: 8,061 8,061 9,080 9,080 9,080 9,080 IPR - Indirect Potable Reuse NOTES: Talbert Barrier - In 2015, a total volume of approximately 36,275 AF from Orange County Water District's Groundwater Replenishment System (GWRS) is used for the Talbert Barrier injection to prevent seawater intrusion (OCWD 2015 Groundwater Management Plan). We assumed 22 percent of the injected water is through injection wells located within the City of Huntington Beach boundary (8 of 36 injections wells lie within Huntington Beach). In 2025 GWRS Phase III expansion is projected to add 33,600 AFY (OCWD 2015 Groundwater Management Plan). Since 35 percent of GWRS water is currently used for seawater intrusion, the same percentage is assumed for Phase III. Talbert Barrier represents 39 percent of all seawater intrusion barrier water (OCWD 2015 Groundwater Management Plan). Assumes amount used in 2020 equals 2015 (prior to Phase III expansion in 2025). Assumes amount used in 2025 will equal 2030, 2035, and 2040 per Phase III expansion. HB -237-Item 10. - 16 Table 6-5 Retail: 2010 UWMP Recycled Water Use Projection Compared to 2015 Actual Recycled water was not used in 2010 nor projected for use in 2015. The supplier will not complete the table below. Use Type These are the only Use Types that will be recognized by the WUEdata online submittal tool 2010 Projection for 2015 2015 actual use Agricultural irrigation Landscape irrigation (excludes golf courses) Golf course irrigation Commercial use Industrial use Geothermal and other energy production Seawater intrusion barrier Data not available 8,061 Recreational impoundment Wetlands or wildlife habitat Groundwater recharge (IPR) Surface water augmentation (IPR) Direct potable reuse Other Required for this use Total 8,061 NOTES: See Table 6-4 HB -238-Item 10. - 17 Table 8-1 Retail: Stages of Water Shortage Contingency Plan Stage Complete Both Percent Supply Reduction1 Water Supply Condition 1 Up to 10% The City may determine that a "mild" water supply shortage or threatened shortage exists and consumer demand reduction necessary to respond to existing water conditions on a voluntary basis. 2 Up to 20% The City may determine that a "moderate" water supply shortage or threatened shortage exists and consumer demand reduction necessary to existing water conditions including limiting days of irrigation on a mandatory basis. 3 Up to 50% An "Emergency" condition. Exists when the City declares a water shortage emergency and notifies its residents and businesses that significant reduction in consumer demand is necessary to maintain water supplies for public health, safety, and welfare 1 One stage in the Water Shortage Contingency Plan must address a water shortage of 50%. NOTES: HB -239-Item 10. - 18 Table 8-3 Retail Only: Stages of Water Shortage Contingency Plan - Consumption Reduction Methods Stage Consumption Reduction Methods by Water Supplier Additional Explanation or Reference All Offer Water Use Surveys The City provides public education by contracting with MWDOC through the Choice Program. The program includes a public website, school programs, water news in the local newspaper, quarterly Water Policy Dinners, annual Water summit, and tours of water facilities. All Provide Rebates on Plumbing Fixtures and Devices The City offers rebates to CII and residential customers (by contracting with MWDOC through its Choice Program) on devices such as laminar flow restrictors, dry vacuum pumps, premium high efficiency toilets. All Provide Rebates for Landscape Irrigation Efficiency The City offers rebates to CII and residential customers (by contracting with MWDOC through the Choice Program) on devices such as spray nozzles, drip irrigation, smart irrigation timers, soil moisture sensor, in-stem flow regulator. All Provide Rebates for Turf Replacement The City provides public education by contracting with MWDOC through the Choice Program. The program includes a public website, school programs, water news in the local newspaper, quarterly Water Policy Dinners, annual Water summit, and tours of water facilities. 3 Moratorium or Net Zero Demand Increase on New Connections The city will limit or withhold issuance of building permits which require new or expanded water service 3 Moratorium or Net Zero Demand Increase on New Connections No new potable water service will be provided except under special circumstances by the City HB -240-Item 10. - 19 Table 8-3 Retail Only: Stages of Water Shortage Contingency Plan - Consumption Reduction Methods Stage Consumption Reduction Methods by Water Supplier Additional Explanation or Reference 3 Moratorium or Net Zero Demand Increase on New Connections The City will suspend consideration of annexations to its service area NOTES: HB -241-Item 10. - 20 Revisions to Appendix E-1 Public Hearing Notice for Amended UWMP HB -242-Item 10. - 21 HB -243-Item 10. - 22 Revisions to Appendix F-1 Resolution of the Amended UWMP adoption (Pending City Council Approval) HB -244-Item 10. - 23 City of Huntington Beach February 5, 2018 Presented by: Duncan Lee, PE Principal Civil EngineerHB -245-Item 10. - 24 What is an Urban Water Management Plan? A long-term resource planning document, to ensure adequate water supplies are available to meet existing and future water demands.HB -246-Item 10. - 25 Why Need an Urban Water Management Plan? Required when serving more than 3,000 customers or supplying more than 3,000 acre-feet/year (HB serves 26,000 acre- feet/year to 200,000 residents) Required every 5 years Urban Water Management Planning Act of 1983 HB -247-Item 10. - 26 Results of Changes Due to Comments from DWR Added background information pertaining to the groundwater basin and the salt water intrusion barrier managed by the Orange County Water District. Added background information pertaining to wastewater treatment managed by the Orange County Sanitation District. Expanded water consumption reduction methods and provided context for the 3 stages of water supply reduction.HB -248-Item 10. - 27 Sources of Water? 25% Imported Water 75% Ground WaterHB -249-Item 10. - 28 Water Being Conserved 2016 25,816 AF 2015 27,996 AF Acre- Feet Produced 2005 32,373 AF HB -250-Item 10. - 29 Surplus Water Available Over Next 25 Years? Normal Year Scenario (Table 3-6) Available Surplus of 1,184 AFYHB -251-Item 10. - 30 Recommendation Approve the resolution for adoption of the amendments to the previously adopted 2015 Urban Water Management Plan pursuant to AB797 and SB1011.HB -252-Item 10. - 31 Questions & AnswersHB -253-Item 10. - 32 HB -254-Item 11. - 1 HB -255-Item 11. - 2