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HomeMy WebLinkAbout2018-05-07 Agenda Packet FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, May 07, 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. 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- AWARDS AND PRESENTATIONS Awards, presentations, and proclamations made by the Mayor on behalf of the City. The Public Information Office coordinates the arrangements with the Mayor and submits a list of presentations through the City Manager’s Office. PUBLIC COMMENTS This is the time of the meeting for the City Council to receive comments from the public regarding items of interest or agenda items not scheduled for Public Hearing. Pursuant to the Brown (Open Meetings) Act, the City Council may not enter into discussion regarding items not on the City Council agenda. Members of the public who wish to speak to a member of the Council on an item not on the agenda may consider setting up an individual appointment by contacting the Council's Administrative Assistant at 714-536-5553. The following statement applies to any public exchange of comments during City Council meetings: “The City Council strives to treat members of the public with respect. Comments or concerns provided by the public shall be done in a civil and respectful manner. Any public comments that are discriminatory, defamatory or otherwise not protected speech, whether as to race, religion, disability, sexual orientation, or any other protected classification, will not be considered by the City Council and may be a basis for the Mayor to interrupt the public comment. In addition, any such public comments will not be consented to, agreed to, ascribed to, or otherwise adopted by the City Council in its considerations, deliberations, discussions, and findings regarding any matter before it tonight. The City Council provides this public opportunity for free speech, but the City Council categorically rejects comments from anyone, including the public, that are of a discriminatory nature, and such comments will not inform the City Council’s decision.” To participate in Public Comments, pink Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms. Each speaker is allowed 3 minutes, and time may not be donated to another speaker. COUNCIL COMMITTEE / APPOINTMENTS / LIAISON REPORTS AND ALL AB 1234 DISCLOSURE REPORTING This agenda item allows Councilmembers to make announcements regarding Council committees, appointments or liaison reports, and all individuals as appropriate to disclose any conferences, training, seminars, etc. attended at the Agency’s expense, per Government Code §53232.3(d). Lists of the conferences, training, seminars, and other activities generally attended by the City Council, City Manager, City Attorney, City Clerk, and City Treasurer are included as appendices to the City Budget. The budget is available on the city’s website at http://www.huntingtonbeachca.gov/Government/budget_information/. PUBLIC HEARING Public Hearings allow citizens to speak in favor or against specific items brought to Council by staff. Staff may provide a presentation. The Mayor will open the Public Hearing to receive comments on that specific item. Upon hearing all public comments, the Mayor will close or continue the Public Hearing. Council may then decide to engage in discussion and/or take action on the item. To participate in a Public Hearing, green Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms. ADMINISTRATIVE HEARING Administrative Hearings required by Huntington Beach Municipal Code Section 1.18 entitle only affected property owners to speak on a respective item. To participate in the Administrative Hearing, blue Request to Speak forms are available at the Chambers entrance and are collected by the Sergeant at Arms (the Police Officer located near the speakers’ podium). CONSENT CALENDAR Consent Calendar items are considered routine items that do not normally require separate consideration. The City Council/Public Financing Authority usually makes one motion for approval of all the items listed under this section. However, Council may remove an item from the motion for discussion purposes. ADMINISTRATIVE ITEMS Administrative Items are considered separately and require separate motions. These actions are normally of a non-routine nature, and frequently require a staff presentation. ORDINANCES Ordinances require two readings before the City Council. They are first introduced, and then adopted at a subsequent meeting. Ordinances typically become law thirty (30) days after adoption. However, an emergency ordinance may be adopted upon introduction, and is effective immediately. COUNCILMEMBER ITEMS This portion of the agenda is provided for Items of business presented by individual members of the City Council. HB -2- -1- City Council/PFA Agenda – Monday, May 07, 2018 FRED A. WILSON City Manager MICHAEL E. GATES City Attorney ROBIN ESTANISLAU City Clerk ALISA CUTCHEN City Treasurer AGENDA Monday, May 07, 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. Presentation from the Finance Department regarding the Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended September 30, 2017 2. Discussion and presentation of Budget Balancing Options 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 labor negotiator, City Manager Fred Wilson, who will be participating in today's Closed Session discussions regarding labor negotiations with: Management Employees' Organization (MEO), and Surf City Lifeguard Employees' Association (SCLEA). HB -3- -2- City Council/PFA Agenda – Monday, May 07, 2018 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 § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: The Kennedy Commission, et al. v. City of Huntington Beach, Orange County Superior Court Case No. 30-2015-00801675. 5. 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: Management Employees’ Organization (MEO) and Surf City Lifeguard Employees’ Association (SCLEA). 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 - Bishop Rob Clark of the Church of Jesus Christ of Latter-Day Saints and Greater HB 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 call on City Clerk Robin Estanislau to present a proclamation recognizing the International Institute of Municipal Clerks celebration of Municipal Clerks Week, May 6-12, 2018 Mayor Posey to call on HBPD Chief Rob Handy and MADD representative Tiffany Ranney to recognize HBPD officers for their efforts to reduce drunk/impaired driving Mayor Posey to present commendation to Rainbow/Republic Services driver Toribio Gonzalez for receiving the national "Driver of the Year" award HB -4- -3- City Council/PFA Agenda – Monday, May 07, 2018 Mayor Posey to present commendation to 92-years-young Huntington Beach resident Patrick Earley for receiving the "Give Life Hero Award" from the American Red Cross for his ongoing platelet donations Mayor Posey to present commendation for National Economic Development Week to representatives from Car Dealers, Boeing, Visit Huntington Beach, Downtown BID and Chamber of Commerce ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3 Minute Time Limit) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES CITY MANAGER'S REPORT 1. Police Department Update CITY TREASURER'S REPORT 2. Receive and file the City Treasurer's March 2018 Quarterly Investment Summary Report Recommended Action: Receive and file the City Treasurer’s Quarterly Investment Report for March 2018, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. CITY ATTORNEY'S REPORT 3. City of Huntington Beach filed a lawsuit on April 4, 2018, against The State of California, Edmund Gerald Brown, Jr., Governor of California, and Xavier Becerra, Attorney General of California challenging SB 54, the State’s recently enacted Sanctuary State law. The City’s lawsuit was filed in the Orange County Superior Court Case No. 30-2018-00984280 and assigned to Judge James L. Crandall, Dept. C33. 4. City of Huntington Beach filed a lawsuit on April 24, 2018 against Daniel Horgan to enjoin him from proceeding with his Petition to place a Measure on this November’s ballot to Ban Guns in the City of Huntington Beach. The City’s lawsuit was filed in the Orange County Superior Court Case No. 30-2018-00988343 and assigned to Judge Robert Moss, in Dept. C14. 5. City of Huntington Beach and Successor Agency filed a lawsuit on April 25, 2018 against the Edmund G. Brown, Jr., Michael Cohen, Director of the California Department of Finance, Justyn Howard, Program Budget HB -5- -4- City Council/PFA Agenda – Monday, May 07, 2018 Manager of the Department of Finance of The State of California, Department of Finance of The State Of California; and Eric H. Woolery, Auditor-Controller of The County of Orange. This lawsuit was authorized by City Council months ago, but this filing is taking place now after the requisite time for the government claim to be submitted and evaluated by the State of California. The lawsuit challenges the State’s withholding, and seeks recovery, of approximately $75,000,000 in redevelopment reimbursements that are owed to the City by the State of California. CONSENT CALENDAR 6. Approve and adopt minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated April 2, 2017, and the City Council/Public Financing Authority regular meeting minutes dated April 16, 2017, as written and on file in the Office of the City Clerk. 7. Adopt Resolution No. 2018-28 approving City Authorized Agents to apply for and obtain Financial Assistance for Disaster and Emergency Relief Recommended Action: Adopt Resolution 2018-28, "A Resolution of the City Council of the City of Huntington Beach Authorizing Certain City Officials to Execute Grant Applications and Documents" to obtain disaster and emergency relief. 8. Award and authorize execution of a construction contract in the amount of $1,772,634 to R.J. Noble Company for the Residential Overlay of Maintenance Zone 1, CC-1567; and, authorize appropriation of funds Recommended Action: A) Accept the lowest responsive and responsible bid submitted by R.J. Noble Company in the amount of $1,772,634; and, B) Appropriate $20,000 from the Water Fund to business unit 50685201.82100; and, C) Appropriate $50,000 from the Sewer Fund to business unit 51185101.82600; and, D) Appropriate $500,000 from the Infrastructure Fund to business unit 31440001.82000; and, E) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. 9. Approve and authorize execution of agreements with Best Towing, LLC, and Mandic Motors, Inc., for Police Directed Services; and, adopt HB -6- -5- City Council/PFA Agenda – Monday, May 07, 2018 Resolution No. 2018-21 revising the fees for Towing Services and Garage Impounds Recommended Action: A) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Best Towing, LLC, for Police Directed Towing and Storage Services;" and, B) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Mandic Motors, Inc., for Police Directed Towing and Storage Services;" and, C) Adopt Resolution No. 2018-21, "A Resolution of the City Council of the City of Huntington Beach Revising the Fees for Towing Services and Garage Impounds" effective April 1, 2018. 10. Approve and authorize execution of Amendment No. 1 to an agreement with GRC and Associates, Inc. for consulting services for the Housing Rehabilitation Loan Program in the amount of $85,000 for a total contract amount not to exceed $175,000 and extending the contract term through February 5, 2020 Recommended Action: Approve and authorize the City Manager to execute "Amendment No. 1 to Professional Services Contract Between the City of Huntington Beach and GRC Associates, Inc. for Administration of the Housing Rehabilitation Loan Program" in the amount of $85,000 and extending the contract term through February 5, 2020. 11. Approve and authorize execution of a 3-year Professional Services Contract with Townsend Public Affairs, Inc. for State Advocacy Services in an amount not to exceed $195,000 Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Professional Services Contract Between the City of Huntington Beach and Townsend Public Affairs for State Advocacy Services" in an amount not to exceed $195,000. PUBLIC HEARING 12. Approve the 2018-19 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; direct the Economic Development Committee (EDC) to determine grant allocation; and, authorize the City Manager to sign the Application for Federal Assistance Funds Recommended Action: A) Approve the 2018-19 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program funds; and, HB -7- -6- City Council/PFA Agenda – Monday, May 07, 2018 B) Direct the Economic Development Committee (EDC) to make final determination if the 2018 -19 CDBG and HOME programs HUD grant allocation should increase or decrease from the anticipated grant allocation; and, C) Authorize the City Manager to sign any and all applications and necessary documents for Federal assistance under the CDBG and HOME programs after review by the City Attorney. 13. Approve for Introduction Ordinance No. 4156 approving Zoning Text Amendment (ZTA) No. 18-001 amending Section 213.06 of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) (Ancillary Alcohol Sales in OS-PR Zoning District) Recommended Action: A) Find the proposed project exempt from the California Environmental Quality Act (CEQA) pursuant to City Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act (Attachment No.1); and, B) Approve Zoning Text Amendment No. 18-001 with findings by approving for introduction Ordinance No. 4156, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance Titled OS Open Space District (Zoning Text Amendment No. 18-001." ADMINISTRATIVE ITEMS 14. Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Surf City Lifeguard Employees’ Association (SCLEA) and the City of Huntington Beach for January 1, 2018 through June 30, 2019 Recommended Action: Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Surf City Lifeguard Employees’ Association and the City of Huntington Beach for the period January 1, 2018 through June 30, 2019. COUNCILMEMBER ITEMS 15. Item Submitted by Mayor Pro Tem Erik Peterson and Councilmember Lyn Semeta - Creation of a Harbour Commission Recommended Action: A) Direct staff, including the City Attorney, to review best practices for the operation of a Harbour Commission, including the make-up of Commission membership, authority of the Commission, and proposed amendments to the Municipal Code, for the creation and operation of a Harbour Commission; and, HB -8- -7- City Council/PFA Agenda – Monday, May 07, 2018 B) Create an ad hoc committee, to include two Council Members as liaisons, to work with staff and return to Council within 90 days with a proposal covering items listed in #1 above. 16. Item submitted by Councilmember Patrick Brenden - Move City Council Meetings from Monday to Tuesday Recommended Action: Direct the City Manager to work with staff to propose modifications to the Council Manual and work with the City Attorney to return and present to Council appropriate Resolutions to establish that regular City Council meetings shall be held on the first and third Tuesdays of each month. Return to City Council for action within 45 days. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, May 21, 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- Dept. ID CT 18-003 Page 1 of 1 Meeting Date: 5/7/2018 Statement of Issue: Receive and file the City Treasurer’s Quarterly Investment Report for March 2018, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Receive and file the City Treasurer’s Quarterly Investment Report for March 2018, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or Critique Quarterly report Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Strengthen economic and financial sustainability. Attachment(s): 1. Treasurer’s Quarterly Investment Report for March 2018 2. Treasurer’s PowerPoint Presentation for March 2018 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 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 March 2018 Quarterly Investment Summary Report HB -10-Item 2. - 1 City of Huntington Beach Quarterly Treasurer's Report Quarter Ending: March 31, 2018 Prepared by: Alisa Cutchen, CCMT, CPFIM - City Treasurer HB -11-Item 2. - 2 CITY OF HUNTINGTON BEACH —CITY TREASURER'S QUARTERLY REPORT MARCH 2018 Economic and Market Overview: Market Summary January - March 2018 Market Summary 1/31/2018 2/28/2018 3/31/2018 Feb. - Mar. % Change Federal Funds Rate 10-Year Treasury S&P 500 DOW 1.25 - 1.50 % 2.72% 2,823.81 26,149.39 2.87% 2,713.83 25,029.20 2.74% -4.53% 1.25 - 1.50 % 1.50 - 1.75 % 16.67% 2,640.87 24,103.11 -2.68% -3.70% The Federal Open Market Committee (FOMC) met in March to discuss the current state of the economy and to examine potential future interest rate hikes before year end. They concluded that the labor market has continued to strengthen and economic activity has been rising at a moderate rate. Inflation on a 12-month basis is expected to move up in the coming months and to stabilize around the Committee's 2 percent objective over the medium term. They stated, "Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely." The Committee will continue to monitor actual and expected inflation developments as the year progresses to determine the timing and size of future adjustments to the federal funds rate. In view of the realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate for the first time in 2018 to 1-1/2 to 1-3/4 percent in March. Fixed Income/Equity Markets: The yield on the 10-year U.S. Treasury finished the quarter at 2.74%, up from 2.40% from the end of the previous quarter, for a 14.16% increase quarter over quarter. This is down slightly from the four-year high reached in mid-February of 2.94%. The S&P 500 and DOW decreased by 1.22% and 2.49% respectively, for the same time period, giving back the gains from the beginning of 2018. Overall, the first quarter of 2018 brought market volatility, following the stock market's calm and steady rise in 2017. Employment: Total nonfarm payroll employment increased by 103,000 in March and the unemployment rate remained unchanged at 4.1 percent for the sixth straight month, the lowest rate since 2000. Over the past 3 months, job gains have averaged 202,000 per month. Average earnings rose by 8 cents an hour and are up 2.7 percent over the past year. This is weaker than most economists would expect with unemployment so low. HB -12-Item 2. - 3 Corporate Bonds 12% Federal Agencies incl. discount note 64% CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 Portfolio Composition: Investment Type Federal Agency Issues Local Agency Investment Fund (LAIF) Medium Term Notes - IBRD Corporate Bonds Commercial Paper Federal Agency Discount Note Total Portfolio Portfolio Summary As of March 31, 2018 $ in millions % of Market Value Book Value Portfolio $ 135.8 $ 138.5 60% $ 30.7 $ 30.7 13% $ 5.0 $ 5.0 2% $ 25.8 $ 26.2 12% $ 19.9 $ 19.9 9% $ 9.9 $ 9.9 4% $ 227.1 $ 230.2 100% Policy Limit None $65 million 10% 30% 25% None In Compliance yes yes yes yes yes yes Currently, funds within this portfolio are invested in federal agency securities, corporate bonds, commercial paper, the International Bank for Reconstruction and Development ("IBRD") and the State of California's pooled account (Local Agency Investment Fund "LAIF"). All federal agency bonds and notes purchased by the City are rated "AAA" by Moody's, as are the IBRD bonds. All corporate bonds are "A" rated or its equivalent or better, per the City's investment policy and State of California regulations. All commercial paper has the highest ratings of A-1/P-1. Investments by Type As of March 31, 2018 Commercial Paper 9% HB -13-Item 2. - 4 CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 LAIF offers local agencies the opportunity to participate in a major portfolio with overnight liquidity managed by the State of California Treasurer's Office. Please see http://www.treasurer.ca.gov/pmia- laif/laif.asp for more information. LAIF is currently utilized for the liquidity portion of the City's portfolio as the yield received for overnight availability at this time is similar to or greater than that of alternative liquid investments. Portfolio Earnings and Performance: Monthly Earnings April 2017 — March 2018 $ in 000's $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00 A. 4. i .N. <34 4 1/4 .0 A." A Nz1/4 4‘ VP 1, AV9 Att" 11'4' ,e .446' e e 4af ik(' .09. a.s, Ad.' ,vc:IN 14.. Acle 0,, et• ci;i7' ,N, q,1 .0 40 N. <C. fe - 1, ,z,S. 'I 15'1 f4'''‘ 0', 1,ZI 15)6? 1, ..1, 'V As is typically the case on an annual basis, monthly earnings increase from December through July with the receipt of property taxes, followed by a decrease from August to November as funds are utilized. As well, over the past year, interest rates have risen as the Federal Reserve has raised rates four times since March of last year offering the portfolio an opportunity to earn increased interest income. The current federal funds rate stands at 1.50 — 1.75%. HB -14-Item 2. - 5 CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 Portfolio Earnings As of March 31, 2018 Portfolio Earnings Month End 3/31/18 MD 3/31/18 Current Year $ 284,798 $ 1,524,112 Current Budget $ 160,000 $ 960,000 Last Year Actual $ 229,564 $ 1,260,072 % Increase current vs. previous year 24% 21% Effective Rate of Return 1.50% 1.46% Benchma rk* 1.57% *12 month moving average of interpolated 1.5-yea r treasury The portfolio earnings for March of 2018 were $284,798, a 24% increase over earnings for the same month in 2017. Fiscal year-to-date earnings as of 3/31/18 were $1,524,112, a 21% increase over the same period in 2017. Interest rates have been increasing rapidly over the past year. The interest rate for the types of securities that may be purchased by the city has increased by over 1% in the past year. While this potentially results in the city's ability to increase portfolio earnings, there must be cash available to invest at these higher rates. The portfolio will lag the market as securities will mature over time in order to be reinvested at higher rates. As well, the city will be making a large payment in July for which approximately $25 million has been invested in shorter-term investments (6 months). This contributes to the illiquidity of the portfolio and the inability to fully invest at the higher rates. The resulting effective rate of return of 1.50% is slightly below the benchmark of 1.57%. However, it is anticipated that as funds become available, they will be reinvested at the higher interest rates resulting in an increased rate of return for the portfolio. Portfolio Activity: Monthly Activity March 2018 Investment Type Purchases/Deposits Federal Agency Issues Local Agency Investment Fund (LAIF) $ 8,000,000 Medium Term Notes - IBRD Corporate Bonds Commercial Paper Federal Agency Discount Note Sales/Maturities/Withdrawal! $ 5,000,000 $ 5,000,000 TOTAL $ 8,000,000 $ 10,000,000 HB -15-Item 2. - 6 CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 For the month of March 2018, a net of $3 million was transferred from the operating account to LAIF and $5 million in Federal Agencies matured. Quarterly Activity January March 2018 Investment Type Purchases (PAR)/Deposits Sales/Maturities/Withdrawah Federal Agency Issues $ 5,000,000 Local Agency Investment Fund (LAIF) * $ 8,028,689 $ 15,000,000 Medium Term Notes - IBRD Corporate Bonds $ 2,000,000 Commercial Paper $ 20,000,000 Federal Agency Discount Note $ 10,000,000 TOTAL $38,028,689 $ 22,000,000 *Includes Interest Income For the quarter ending March 31, 2018, in addition to the monthly activity previously stated, LAIF interest of $28,689 was received, $20 million in Commercial Paper was purchased, $10 million in Federal Agencies were purchased (in the form of a Discount Note), $10 million was transferred from LAIF to the operating account, and $2 million in corporate bonds matured. In order to ensure the availability of approximately $25 million in funds for the July CalPERS UAL prepayment, the above investment purchases include this amount, which was invested in January to mature in July of this year. Compliance: The portfolio is in conformity with all relevant State regulations and the City's Investment Policy statement as approved by the City Council on February 5, 2018. The investment program herein shown provides sufficient cash flow liquidity to meet the next six months' obligations. HB -16-Item 2. - 7 CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 Additional Information: Retirement Plans — Market Value Due to delay in statement receipt, information is from previous quarter. Deferred Compensation Plans - Summary Information Reporting is Quarterly Beginning Balance (10-1-17) Ending Balance (12-31-17) Ending Balance Nationwide incl. Self Directed Option (12-31-17) ICMA Retirement Corporation (457 Plan) Nationwide Retirement Solutions (457 Plan) Total Deferred Compensation Plan Balances $49,425,139 $85,558,718 $134,983,857 $51,421,594 $87,788,264 $139,209,858 $51,421,594 $89,058,537 $140,480,131 Retiree Medical Trust - Summary Information Reporting is Quarterly CalPERS Retiree Medical Trust Account Beginning Ending Balance Balance (10-1-17) (12-31-17) $24,978,725 $25,695,391 Supplemental Pension Trust - Summary Information Reporting is Monthly Beginning Balance (12-1-17) Ending Balance (12-31-17) US Bank Supplemental Pension Trust Account $55,565,222 $56,144,554 PARS 115 Trust-Summary Information Reporting is Monthly Beginning Ending Balance Balance (12-1-17) (12-31-17) PARS Post Employment Benefits Trust Account $3,875,582 $3,907,576 HB -17-Item 2. - 8 CITY OF HUNTINGTON BEACH — CITY TREASURER'S QUARTERLY REPORT MARCH 2018 Bond Reserve Accounts — Market Value Balances as of March 31, 2018 Summary of Huntington Beach Bond Issue -- Reserve Accounts As of March 31,2018 Bond Issue: H.B. Public Financing Authority Lease Refunding Bonds 2010 Series A H.B. Public Financing Authority (Capital Improvement Retinancing/Senior Center) Bonds 2011 Series A Reserve Account Investments Value as of Federal Money Market March 31,2018 LAIF Agency Issues Funds CAMP 1,246,382.05 1,242,000 4,382.05 3,377,311.32 3,377,272.18 39.14 Redevelopment Agency of H.B, - 1999 Tax Allocation Refunding Bonds (1/3 of 1992) Redevelopment Agency of H.B. - 2002 Tax Allocation Refunding Bonds (2/3 of 1992) H.B. Community Facilities District No. 1990- 1 2001 Special Tax Bonds (Goldenwest- Ellis) 1-1,13. Community Facilities District No, 2000- 1 2013 Special Tax Bonds (Grand Coast- Hyatt) H.B. Community Facilities District No. 2002- 1 2002 Special Tax Bonds (McDonnell Centre Business Park) H.B. Community Facilities District No. 2003- 1 2013 Special Tax Bonds (Huntington Center - Bella Terra) 757,356.39 757,337.77 18.62 1,700,341.98 655,362.38 994,040.00 50,939.60 186,053.63 172,924.21 13,129.42 1,095,572.67 1.40 1,095,571.27 463,716.98 461,198.04 2,518.94 1,685,737.42 2.42 1,685,735.00 TOTALS: $ 10,512,472 $ 6,666,095 $ 994,040 $ 71,032 $ 2,781,306 HB -18-Item 2. - 9 City of HB Portfolio Management Portfolio Summary January 31, 2018 City of Huntington Beach 2000 Main St. Huntington Beach, Par Market Book % of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues - Coupon Local Agency Investment Funds Medium Term Notes - IBRD Corporate Bonds Commercial Paper Disc. -Amortizing Federal Agency Disc. -Amortizing Investments 143,405,000,00 27,706,095.24 5,000,000.00 26,000,000.00 15,000,000.00 10,000,000.00 227,111,095.24 140,697,299.85 27,706,095.24 4,979,500.00 25,928,970.00 14,875,500.00 9,927,600.00 224,114,965.09 143,509,547.60 27,706,095.24 4,994,632,95 26,217,557,43 14,879,425.00 9,931,069.89 227,238,328.11 63.15 1,401 12.19 1 2.20 608 11.54 1,242 6.55 180 4.37 182 100.00% 1,061 875 1 168 592 159 162 642 1.441 1.332 1.093 1.626 1.837 1.565 1.473 1.461 1,350 1.109 1.649 1.862 1.587 1.493 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return January 31 Month Ending 273,420.21 160,000.00 228,885.99 224,063,945.55 1.44% Fiscal Year To Date 964,030.31 640,000.00 801,118.52 201,231,286.26 1,42% Fiscal Year Ending 1,920,000.00 2,752,784.09 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on February 5, 2018. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen, CITY TREASURER Reporting period 01/0112018-01/31/2018 Portfolio CRY AP Run Date: 0420/2018 - 13:26 PM (PRF PM1) 7.3.0 Report Ver. 7.3.3b HB -19-Item 2. - 10 1.620 1.375 1.250 1.600 1.050 2.000 1.750 1.000 1.250 1.000 1.000 1.280 1.500 1.500 1.650 1.750 1.875 1.875 1.500 1.500 2.125 1.040 1.400 1.500 1.500 1.250 1.500 2.000 1.000 1.950 AA AA AA AA AA AA AA AA AA AA PA AA AA PA AA PA PA AA AA AA PA AA AA AA PA AA AA AA AA AA 1.620 1.100 1.250 1.600 1.518 1.297 1.750 0.991 1.919 1.000 0.998 1.280 1.500 1.400 1.650 1.744 1.723 1.733 1.521 1.521 2.125 1.040 1.400 1.505 1.500 1.250 1.500 1.825 1.000 1.950 1,229 36 477 1,063 921 589 1,546 176 873 148 512 972 1,245 1,245 1,390 939 1,272 1,293 573 575 1,609 267 497 1,245 1,056 512 1,063 1,264 448 1,400 City of HB Portfolio Management Page 1 Portfolio Details - Investments January 31, 2018 CUSH:. Investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate Y7M Days to Maturity S&P 365 Maturity Date Federal Agency Issues - Coupon 3133EGEV3 313378A43 3130A7WK7 3130A8DC4 3130A8T94 313383VN8 3130AB3L8 3134G73C2 3134G9RN9 3134G9UY1 3134G9 F93 3134G9E78 3134G9C54 3134G9G35 3134GAUB8 3134G BN N8 3134G9N94 3134G92Y2 3134GBNS7 3134GBLT7 3134GBTS1 3136G2R58 3135GOK85 3136G3SJ5 3136G3SN6 3135G0K93 • 3136G3UTD 3136G3VU6 3136G3YG4 3136G4HM8 4140 Federal Farm Credit Bank 4046 Federal Home Loan Bank 4138 Federal Home Loan Bank 4138 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 4166 Federal Home Loan Bank 4120 Federal Home Loan Mort Corp 4139 Federal Home Loan Mort Corp 4142 Federal Home Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Home Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4256 Federal Home Loan Mort Corp 4257 Federal Home Loan Mort Corp 4258 Federal Home Loan Mort Corp 4259 Federal Home Loan Mort Corp 4260 Federal Home Loan Mort Corp 4261 Federal Home Loan Mort Corp 4122 Fed. Nati Mort. Assoc. 4137 Fed. Nat'l Mort. Assoc. 4141 Fed. Nat'l Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc. 4144 Fed. Nat'l Mort. Assoc. 4146 Fed. Nat'l Mort. Assoc. 4147 Fed. Nat'l Mort. Assoc. 4152 Fed. Nail Mort. Assoc. 4159 Fed. Nat'l Mort, Assoc, 06/15/2016 02/20/2015 05/24/2016 06/30/2016 08/10/2016 11/16/2016 04/27/2017 10/2712015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 05/30/2017 06/14/2017 06/14/2017 06/14/2017 06/15/2017 06/29/2017 10/29/2015 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2018 07/25/2016 12/02/2016 5,000,000.00 5,000,030.00 5,000,000.00 2,250,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.03 3,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 4,844,700.00 5,000,450.00 4,950,150.00 2,193,862.50 4,928,800.00 4,978,050.00 4,934,050,00 4,980,900.00 4,938,750.00 4,989,500.00 4,898,200.00 4,861,100.00 4,470,522.35 4,876,950.00 4,780,800.00 4,903,650.00 4,912,850.00 4,916,250.00 2,965,860.00 2,964,150.00 4,874,250.00 4,971,400.00 4,949,450.00 4,819,400.00 2,882,880.00 4,938,350.00 4,822,350.00 4,899,150.00 7,381,425.00 4,868,900.00 5,000,000.00 5,001,422.84 5,000,000.00 2,250,000.00 5,000,000.00 5,055,596.17 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,793.66 5,025,407.96 5,024,110.71 2,999,035.96 2,999,033.77 5,030,000.00 5,000,000.00 5,000,000.00 4,999,146.53 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 06/14/2021 03/09/2018 05/24/2019 12/30/2020 08/10/2020 09/13/2019 04/27/2022 07/27/2018 06/23/2020 06/29/2018 06/28/2019 09/30/2020 06/30/2021 06/30/2021 11/22/2021 08/28/2020 07/27/2021 08/17/2021 08/28/2019 08/30/2019 06/29/2022 10/26/2018 06/13/2019 06/30/2021 12/23/2020 06/28/2019 12/30/2020 07/19/2021 04/25/2019 12/02/2021 Subtotal and Average 143,511,916.97 143,405,000.00 140,697,299.85 143,509,547.60 1.461 875 Local Agency Investment Funds SYS982 982 Leif City 27,706,095.24 27,706,095.24 27,706,095.24 1.350 1.350 Subtotal and Average 30,921,721.76 27,706,095.24 27,706,095.24 27,706,095.24 1.350 1 Portfolio CITY AP Run Date: 04/2012016 - 13 -26 PM (PRF_PM2) 7.3.0 Report Var. 7.3,3b HB -20-Item 2. - 11 City of HB Portfolio Management Page 2 Portfolio Details - Investments January 31, 2018 Average Purchase Stated YTM Days to Maturity CUSIP Investment Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes -1BRD 459058FE8 4158 Intl Bk Recon & Development 11/18/2016 5,000,000.00 4,979,500.00 4,994,632.95 0.876 AAA 1.109 168 07/19/2018 4262 4155 4154 4077 4164 4049 4071 4039 Corporate Bonds 037833AR1 06406HCZO 17275RBG6 268648AP7 494368 BP7 191216 BA7 68389XAQ8 89236TAY1 Subtotal and Average Apple Inc. Bank of New York Cisco Systems Inc EMC Corp Kimberly Clark Corp Coca Cola Co Oracle Corp Toyota Motor Credit 4,994,184.66 06/26/2017 10/24/2016 09/27/2016 07/14/2015 12/28/2016 02/24/2015 05/26/2015 01/26/2015 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 2,500,000.00 2,000,000,00 2,500,000.00 3,000,000.00 3,000,000,00 4,979,500.00 5,034,600.00 4,967,900.00 2,955,440.00 2,489,525.00 1,973,800.00 2,497,075.00 3,008,910.00 3,000,720.00 4,994,632.95 5,135,970.32 5,053,310.25 3,004,643.93 2,501,984.57 1,993,648.29 2,499,560.88 3,017,833.34 3,010,605.85 05/06/2021 02/24/2020 09/20/2019 06/01/2018 03/01/2020 04/01/2018 D1/15/2019 10/24/2018 1.109 168 2.850 AA 1.980 1,190 2.150 A 1.617 753 1.400 AA 1.303 596 1.875 AA 1.630 120 1.850 A 2.008 759 1.150 AA 1,258 59 2.375 AA 1.731 348 2.000 AA 1.500 265 1.649 592 Subtotal and Average Commercial Paper Disc. -Amortizing 466400GA3 4263 JP Morgan Subtotal and Average Federal Agency Disc. -Amortizing 313385Z54 4264 Federal Home Loan Bank 28,157,114.78 01/11/2018 10,074,473.39 01/12/2018 26,000,000.00 25,928,970.00 26,217,557.43 15,000,000.00 14,875,500.00 14,879,425,00 1.820 A-1 1.862 159 07/10/2016 15,000,000.00 14,875,500.00 14,879,425.00 1.862 159 10,000,000.00 9,927,600.00 9,931,069.89 1.532 AA 1.587 162 07113/2018 Subtotal and Average 6,404,534.00 10,000,000.00 9,927,600.00 9,931,069.89 1.587 162 Total and Average 224,063,945.55 227,111,095.24 224,114,965.09 227,238,328.11 1.493 642 Portfolio CITY AP Run Date: 04/20/2018 - 13:28 PM (PRF_PM2) 7.3.0 HB -21-Item 2. - 12 City of HB Portfolio Management Page 1 Activity By Type January 1, 2018 through January 31, 2018 Stated Transaction Purchases Redemptions CUSIP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon Subtotal 143,509,547.60 Local Agency Investment Funds (Monthly Summary) SYS9B2 982 Laif City 1.350 28,688.89 10,000,000.00 Subtotal 28,688.89 10,000,000.00 27,706,095.24 Medium Term Notes - IBRD Subtotal 4,994,632.95 Corporate Bonds 58933YAC9 4045 Merck & Co Inc 1.100 01/31/2018 0.00 2,000,000.00 Subtotal 0.00 2,000,000.00 26,217,557.43 Commercial Paper Disc. -Amortizing 466400GA3 4263 JP Morgan 1.1320 01/11/2018 14,863,500.00 0.00 Subtotal 14,863,500.00 0.00 14,879,425.00 Federal Agency Disc. -Amortizing 3133852G4 4264 Federal Home Loan Bank 1.532 01/12/2018 9,922,560.00 0.00 Subtotal 9,922,560.00 0.00 9,931,069.89 Total 24,814,748.89 12,000,000.00 227,238,328.11 Portfolio CITY AP Pun Date: 04120/2018 - 13:26 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b HB -22-Item 2. - 13 City of HB Portfolio Management Page 1 Activity Summary January 2017 through January 2018 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 365 Equivalent Equivalent Average Term Average Days to Maturity January February March April May June July August September October November December January 2017 48 216,148,564.96 2017 48 215,339,319.67 2017 47 213,717,52'L37 2017 48 213,723,352.90 2017 49 225,340,416.22 2017 52 231,210,07529 2017 50 227,046,68732 2017 47 208,273,796.65 2017 46 201,272,141.13 2017 45 196,034,063.90 2017 44 188,015,052.55 2017 41 196,385,752.92 2018 42 224,063,945.55 t341 1.357 1.315 1.351 1.343 1.402 1.398 1.399 1.415 1.437 1.439 1A1 4 1.473 1.360 1.376 1.333 1.370 1.361 1.422 1.417 1.418 t435 1.457 1.459 1.433 1.493 0.751 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 1.350 0 2 6 0 0 0 0 0 0 2 3 2 3 1 1 1 3 1,152 1,179 1,136 1,174 1,123 1,219 1,246 1,258 1,275 1,310 1,310 1,114 1,061 863 857 788 827 772 866 845 843 835 839 821 688 642 Average 47 212,054,173.83 1.391% 1.410% 1.022 1 1,197 807 Portfolio CITY AP Run Date: 04/23/201B - 13:26 PM (PRP PM4) 7,3.0 Report Ver. 7.3.3b HB -23-Item 2. - 14 Page 1 Fiscal Year To Date City of HB Portfolio Management Interest Earnings Summary January 31, 2018 January 31 Month Ending 1,120,143.33 526,831.02 717,589.16) 0.00) 393,312.50 526,831.02 693,787.99) 0.00) Portfolio CITY AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b Run Date: 04/20/2018 - 13:26 CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 226,355.53 11,616.60 0.00 237,972.13 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00 0.00 28,688.89 37,635.37 30,870.18) 35,454.08 261,809.61 11,616.60 0.00 273,426.21 929,385.19 -29,497.85 0.00 899,887.34 0.00 0.00 0.00) 0.00) 0.00 0.00 0.00 0.00 60,074.88 37,635.37 23,567.28) 64,142.97 993,528.16 -29,497.85 0.00 964,030.31 HB -24-Item 2. - 15 givEsrd, State of California ..0 4 .s. MIA li,, l'i . rooled Money Investment Account .... . ce.Ty too^ •,, Market Valuation .." .0.3, 1/31/2018 Carrying Cost Plus Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury: Bills $ 15,544,011,179.54 $ 15,616,004,000.00 NA Notes $ 21,666,451,724.38 $ 21,540,206,500.00 $ 60,041,141.50 Federal Agency: $ 1,069,312.98 - SBA $ 850,208,761.12 $ 841,469,326.50 ' MBS-REMICs $ 31,766,523.92 $ 32,576,219.09 $ 148,574.43 Debentures $ 1,428,587,035.45 $ 1,418,626,000.00 $ 3,936,990.95 Debentures FR $ - $ - $ - Debentures CL $ 250,000,000.00 $ 246,045,000.00 ' $ 800,361.00 Discount Notes $ 9,436,153,999.74 $ 9,459,448,000.00 NA GNMA $ - $ $ - Supranational Debentures $ 449,534,827.48 $ 446,283,500.00 $ 1,951,070.50 Supranational Debentures FR $ 50,000,000.00 $ 50,061,500.00 $ 40,478.22 CDs and YCDs FR $ 425,000,000.00 $ 425,000,000.00 $ 737,427.35 Bank Notes $ 600,000,000.00 $ 599,644,394.02 $ 1,901,888.88 CDs and YCDs $ 12,825,000,000.00 $ 12,816,493,463.79 $ 28,983,402.76 Commercial Paper $ 9,208,087,583.36 $ 9,222,149,444.40 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - . Repurchase Agreements $ _ $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 5,122,240,000.00 $ 5,122,240,000.00 NA AB 55 & GF Loans $ 689,289,000.00 $ 689,289,000.00 NA TOTAL $ 78,576,330,634.99 $ 78,525,536,347.80 $ 99,610,648.57 Fair Value Including Accrued Interest 78,625,146,996.37 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). HB -25-Item 2. - 16 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department January 2018 Cash Receipts and Disbursements Receipts December 2017 January 2018 General Fund Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax (TOT) Utility Users Tax (U UT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 1 20,715,016 3,975,660 222,906 719,528 1,549,968 5,192,584 32,375,662 11,329 7,558,541 28,329 498,055 271,587 142,320 2,354,057 $43,239,881 (15,166,442) (5,143,397) (617,495) (316,800) 16,582,996 2,658,100 175,971 684,976 1,538,539 2,963,510 24,604,092 186,914 1,938 6,752,117 242,847 535,431 3,769,238 930,629 7,081,456 $44,104,662 (12,094,073) (1,025,970) (159,285) (4,208) Total General Fund Disbursements (21,244,134) (13,283,536) HB -26-Item 2. - 17 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change in Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (279,049) (2,885) (4,417,315) (144,148) (1,360,956) (1,236,281) (1,565,346) (1,403,468) (31,653,582) $11,586,299 December 2017 $71,208,879 4,245,404 18,515,988 14,176 71,467,339 10,209,032 21,093,251 27,106,186 $223,860,254 (666,703) (1,938) (4,462,939) (80,019) (404,639) (606,405) (423,016) (2,641,942) (22,571,138) $21,533,524 January 2018 $80,579,016 4,233,827 18,059,779 31,016 73,886,045 15,135,122 21,249,245 30,719,572 $243,893,624 * Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -27-Item 2. - 18 City of HB Portfolio Management Portfolio Summary February 28, 2018 City of Huntington Beach 2000 Main St. Huntington Beach, 61.80 11.93 2.15 11.29 8.55 4.28 1,401 1 608 1,242 180 182 847 1 140 564 143 134 1.441 1.393 1.093 1.626 1.921 1.565 1,461 1.412 1.109 1,649 1.947 1.587 100.00% 1,043 608 1.495 1.516 Investments Par Value Market Value Book % of Value Portfolio Term Days to Maturity YTM 360 Equiv. 365 Equiv. Federal Agency Issues - Coupon Local Agency Investment Funds Medium Term Notes - IBRD Corporate Bonds Commercial Paper Disc. -Amortizing Federal Agency Disc. -Amortizing Investments 143,405,000.00 27,706,095.24 5,000,000.00 26,000,000.00 20,000,000.00 10,000,000.00 232,111,095.24 140,446,059.40 27,706,095.24 4,979,200.00 25,851,045.00 19,834,100.00 9,933,000.00 228,749,499.64 143,504,481.88 27,706,095.24 4,995,591.35 26,208,909.28 19,847,206.94 9,942,983.74 232,205,268.43 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return February 28 Month Ending 275,284.32 160,000.00 229,389.96 227,425,960.54 1.58% Fiscal Year To Date 1,239,314.63 800,000.00 1,030,508.48 206,088,576.85 1.45% Fiscal Year Ending 1,920,000.00 2,752,784.09 I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on February 5, 2018. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen, CITY TREASURER 0(1, 7.0t Reporting period 02/01/2018-02/28/2016 Portfolio CITY AP Run Date: 04)20/2018 - 13;30 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.36 HB -28-Item 2. - 19 1.620 1.375 1.250 1.600 1.050 2.000 1.750 1.000 1.250 1.000 1.000 1.280 1.500 1.500 1.650 1.750 1.875 1.875 1.500 1.500 2.125 1.040 1.400 1.500 1.500 1.250 1.500 2.000 1.000 1.950 AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA 1.620 1.100 1.250 1.600 1.518 1.297 1.750 0.991 1.919 1.000 0.998 1.280 1.500 1.400 1.650 1.744 1.723 1.733 1.521 1.521 2.125 1.040 1.400 1.505 1.500 1.250 1.500 1.825 1.000 1.950 1,201 8 449 1,035 893 561 1,518 148 845 120 484 944 1,217 1,217 1,362 911 1,244 1,265 545 547 1,581 239 469 1,217 1,028 484 1,035 1,236 420 1,372 City of HB Portfolio Management Page 1 Portfolio Details - Investments February 28, 2018 Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues - Coupon 3133EGEV3 313378A43 3130A7WK7 3130A8DC4 3130A8T94 313383VN8 3130AB3L13 3134G73Q2 3134G9RN9 3134G9UY1 3134G9F93 3134G9E78 3134G9C54 3134G9G35 3134GAUB8 3134GBNN8 3134G9N94 3134G92Y2 3134GBNS7 3134GBLT7 3134GBTS1 3136G2R5B 3135GOK85 3136G3SJ5 3136G3SN6 3135GOK93 3136G3UTO 3136G3VU6 3136G3YG4 3136G4HM8 4140 Federal Farm Credit Bank 4048 Federal Home Loan Bank 4136 Federal Home Loan Bank 4138 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 416,6 Federal Home Loan Bank 4120 Federal Home Loan Mort Corp 4139 Federal Home Loan Mort Corp 4142 Federal Home Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Horne Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4256 Federal Home Loan Mort Corp 4257 Federal Home Loan Mori Corp 4258 Federal Home Loan Mort Corp 4259 Federal Home Loan Mort Corp 4260 Federal Home Loan Mort Corp 4261 Federal Home Loan Mort Corp 4122 Fed. Nat'l Mort. Assoc. 4137 Fed. Nat'l Mort. Assoc. 4141 Fed. Nat'l Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc. 4144 Fed. Nat'l Mort. Assoc. 4146 Fed. Nat'l Mort. Assoc. 4147 Fed. Nat'l Mort. Assoc. 4152 Fed. Nat'l Mort. Assoc. 4159 Fed. Nat'l Mort. Assoc. 06/15/2016 02/20/2015 05/24/2016 06/30/2016 08/10/2016 11/16/2016 04127/2017 10/27/2015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 D5/30/2017 06/14/2017 06/14/2017 06/14/2017 06/15/2017 06/29/2017 10/29/2015 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2016 07/25/2016 12/02/2016 5,000,000.00 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,00100 5,000,000.00 5,000,000.00 5,000,00100 7,500,000.00 5,000,000.00 4,831,950.00 5,000,000.00 4,944,700.00 2,188,642.50 4,920,850.00 4,967,650.00 4,924,100.00 4,983,800.00 4,938,750.00 4,967,800.00 4,900,050.00 4,852,250.00 4,459,396.90 4,864,250.00 4,765,650.00 4,894,250.00 4,887,350.00 4,890,100.00 2,964,240.00 2,962,620.00 4,853,550.00 4,969,200.00 4,950,100.00 4,807,000.00 2,877,660.00 4,926,500.00 4,813,000.00 4,884,500.00 7,384,650.00 4,851,500.00 5,000,000.00 5,000,299.55 5,000,000.00 2,250,000.00 5,000,000.00 5,052,730.38 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,767.98 5,024,801.08 5,023,543.85 2,999,086.96 2,999,084.72 5,000,000.00 5,000,000.00 5,000,000.00 4,999,167.36 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 06/14/2021 03/09/2018 05/24/2019 12/30/2020 08/10/2020 09/13/2019 04/27/2022 07/27/2018 06/23/2020 06/29/2018 06/28/2019 09/30/2020 06/30/2021 06/30/2021 11/22/2021 08/28/2020 07/27/2021 08/17/2021 08/28/2019 08/30/2019 06/29/2022 10/26/2018 06/13/2019 06/30/2021 12/23/2020 06/28/2019 12/30/2020 07/19/2021 04/25/2019 12/02/2021 Subtotal and Average 143,507,087.10 143,405,000.00 140,446,059.40 143,504,481.88 1.461 847 Local Agency Investment Funds SYS982 982 Le City 27,706,095,24 27,706,095.24 27,706,095.24 1.412 1.412 Subtotal and Average 27,706,095.24 27,706,095.24 27,706,095.24 27,706,095.24 1.412 1 Portfolio CITY AP Run Date; 0020/2018 - 13:30 PM (PRF_PM2) 7.3.0 Report Van. 7.3.3b HB -29-Item 2. - 20 City of HB Portfolio Management Page 2 Portfolio Details - Investments February 28,2018 Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes - IBRD 459058FE8 4158 In Bk Recon & Development 11/18/2016 5,000,000.00 4,979,200.00 4,995,591.35 0.876 AAA 1.109 140 07119/2018 1.109 140 4262 4155 4154 4077 4164 4049 4071 4039 2.850 2.150 1.400 1.875 1.850 1.150 2.375 2.000 Corporate Bonds 037833AFR1 06406HCZO 17275RBG6 268648AP7 4943683 P7 1912163A7 68389XAQ8 89236TAY1 Subtotal and Average Apple Inc. Sank of New York Cisco Systems Inc EMC Corp Kimberly Clark Corp Coca Cola Co Oracle Corp Toyota Motor Credit Subtotal and Average 4,995,098.46 06/26/2017 10/24/20/6 09/27/2016 07/14/2015 12/28/2015 02/24/2015 05/26/2015 01/26/2015 26,213,356.90 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 2,500,000.00 2,000,000.00 2,500,000.00 3,000,000.00 3,000,000.00 26,000,000.00 4,979,200.00 5,007,250.00 4,943,650.00 2,950,260.00 2,492,450.00 1,963,820.00 2,497,875.00 2,997,000.00 2,998,740.00 25,851,045.00 4,995,591.35 5,132,498.74 5,051,157.75 3,004,407.40 2,501,488.43 1,993,902.36 2,499,780.44 3,016,278.11 3,009,396.05 26,208,909.28 AA 1.980 A 1.617 AA 1.303 AA 1.630 A 2.008 AA 1.258 AA 1.731 AA 1.500 1,162 05/06/2021 725 02/24/2020 568 09/20/2019 92 06/01/2018 731 03/01/2020 31 04/01/2018 320 01/15/2019 237 10/24/2018 1.649 564 Commercial Paper Disc. -Amortizing 06538CHT1 466400GA3 4265 BANK OF TOKYO-MIT NY 4263 JP Morgan 5,000,000.00 15,000,000.00 4,947,050.00 14,887,050.00 4,946,548.61 14,900,658.33 2.150 2.204 179 08/27/2018 1.820 A-1 1.862 131 07/1012018 02128/2018 01/11/2018 Subtotal and Average 15,067,083.28 20,000,000.00 19,834,100.00 19,847,206.94 1.947 143 Federal Agency Disc. -Amortizing 313385ZG4 4264 Federal Horne Loan Bank 01/12/2018 10,000,000.00 9,933,000.00 9,942,983.74 1.532 AA 1.587 134 0711312018 Subtotal and Average 9,937,239.56 10,000,000.00 9,933,000.00 9,942,983.74 1.587 134 Total and Average 227,425,960.54 232,111,095.24 228,749,499.64 232,205,268.43 1.516 608 Portfolio CITY AP Run Date: 04/20/2018 -13:30 PM (PRF PM2) 7.3.0 HB -30-Item 2. - 21 City of HB Portfolio Management Activity By Type February 1, 2018 through February 28, 2018 Stated Transaction Purchases Redemptions CUSlP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon Subtotal Local Agency Investment Funds (Monthly Summary) Subtotal Medium Term Notes - IBRD Subtotal Corporate Bonds Subtotal Commercial Paper Disc. -Amortizing 065380HT1 4265 BANK OF TOKYO-MIT NY Subtotal Federal Agency Disc. -Amortizing 143,504,481.88 27,706,095.24 4,995,591.35 26,208,909.28 2.150 02/28/2018 4,946,250.00 0.00 4,946,260.00 0.00 19,847,206.94 Subtotal 9,942,983.74 Total 4,946,250.00 0.00 232,205,268,43 Page 1 Portfolio CITY AP Run Date: 04/20/2018- 13:30 PM (PRF_PM3) 7.3.0 Report Var. 7.3.3b HB -31-Item 2. - 22 City of HB Portfolio Management Page 1 Activity Summary February 2017 through February 2018 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 365 Equivalent Equivalent Average Term Average Days to Maturity February March April May June July August September October November December January February 2017 48 215,339,319.67 2017 47 213,717,521.37 2017 48 213,723,352.90 2017 49 225,340,416.22 2017 52 231,210,075.29 2017 50 227,046,687.72 2017 47 208,273,796.65 2017 46 201,272,141.13 2017 45 196,034,063.90 2017 44 188,015,052.55 2017 41 196,385,752.92 2018 42 224,063,945.55 2018 43 227,425,960.54 1.357 1.315 1.351 1.343 1.402 1.398 1.399 1.415 1.437 1.439 1.414 1.473 1.495 1.376 1.333 1.370 1.361 1.422 1.417 1.418 1.435 1.457 1.459 1.433 1.493 1.516 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 1.350 1.412 2 1 6 0 0 0 0 0 2 0 1 1 0 3 2 3 1 1 3 1,179 1,136 1,174 1,123 1,219 1,246 1,258 1,275 1,310 1,310 1,114 1,061 1,043 857 788 827 772 866 845 843 835 839 821 688 642 608 Average 46 212,826,397.50 1.403% 1.422% 1.073 1 1,188 787 Portfolio CITY AP Run Dale: 0412012018 - 13:30 PM (PRF_PM4) 7.3.0 Report Var. 7.3.3b HB -32-Item 2. - 23 City of HB Portfolio Management Page 1 Interest Earnings Summary February 28, 2018 CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses February 28 Month Ending 170,625.00 580,789.38 526,831.02) 0.00) 224,583.36 20,690.32 0.00 245,273.68 0.00 0.00 0.00 0.00 67,646.01 37,635.37) 30,010.64 254,594.00 20,690.32 0.00 Fiscal Year To Date 1,290,766,33 580,789.38 717,589.16) 0.00) 1,153,968.55 -8,807.53 0.00 1,145,161.02 0.00 0.00 0.00 50,074.88 67,646.01 23,567.28) 94,153.61 1,248,122.16 -8,807.53 0.00 0.00 0.00 0.00 0.00 0.00) 0.00) 0.00) 0.00) 0.00 0.00 Total Earnings during Period 275,284.32 1,239,314.63 Portfolio CITY AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b HB -33-Item 2. - 24 vEs,_ State of California e : PICA .9' Pooled Money Investment Account r, 2 1 , Market Valuation , .., 4'.iiaintm•- 2/28/2018 Carrying Cost Plus Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury: Bills $ 15,733,656,226.01 $ 15,803,795,500.00 NA Notes $ 17,861,298,987.71 $ 17,729,214,500.00 $ 33,929,220.00 Federal Agency: SBA $ 837,237,284.14 $ 828,627,711.64 $ 1,052,589.60 MBS-REM1Cs $ 31,409,462.79 $ 32,174,485.98 $ 146,905.19 Debentures 1,478,495,535.45 $ 1,467,815,100.00 $ 4,801,190.30 Debentures FR $ - $ $ - Debentures CL $ 250,000,000.00 $ 245,698,000.00 $ 1,128,903.00 Discount Notes $ 9,483,269,721.98 $ 9,509,738,500.00 NA Supranational Debentures $ 449,437,605.26 $ 446,037,000.00 $ 1,556,113.00 Supranational Debentures FR $ 50,000,000.00 $ 50,064,000.00 $ 111,315.11 CDs and YCDs FR $ 425,000,000.00 $ 425,000,000.00 $ 1,356,241.74 Bank Notes $ 900,000,000.00 $ 898,827,583.76 $ 2,193,722.23 CDs and YCDs $ 14,225,000,000.00 $ 14,213,422,342.26 $ 40,574,625.03 Commercial Paper $ 8,856,111,527.82 $ 8,874,362,173.62 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 5,098,740,000.00 $ 5,098,740,000.00 NA AB 55 & GF Loans $ 693,260,000.00 $ 693,260,000,00 NA TOTAL $ 76,372,916,351.16 $ 76,316,776,897.26 $ 86,850,825.20 Fair Value Including Accrued Interest 76,403,627,722.46 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). HB -34-Item 2. - 25 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department February 2018 Cash Receipts and Disbursements Receipts General Fund January 2018 February 2018 Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax (TOT) Utility Users Tax (UUT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 16,582,996 2,658,100 175,971 684,976 1,538,539 2,963,510 24,604,092 186,914 1,938 6,752,117 242,847 535,431 3,769,238 930,629 7,081,456 $44,104,662 (12,094,073) (1,025,970) (159,285) (4,208) 115,166 3,544,200 182,127 747,856 1,581,912 3,924,564 10,095,825 293,049 454,962 4,733,643 261,856 502,414 361,252 506,729 934,042 $18,143,773 (12,036,371) (3,355,017) (137,207) (563,567) Total General Fund Disbursements (13,283,536) (16,092,162) HB -35-Item 2. - 26 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change In Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (666,703) (1,938) (4,462,939) (80,019) (404,639) (606,405) (423,016) (2,641,942) (22,571,138) $21,533,524 January 2018 $80,579,016 4,233,827 18,059,779 31,016 73,886,045 15,135,122 21,249,245 30,719,572 . $243,893,624 (980,940) (233,988) (4,906,108) (305,386) (699,448) (1,090,926) (953,123) (988,116) (26,250,197) ($8,106,424) February 2018 $73,879,962 4,190,297 17,136,528 251,991 75,858,011 15,081,048 20,852,211 29,767,590 $237,017,638 * Total cash will differ from Investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above Information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -36-Item 2. - 27 City of HB Portfolio Management Portfolio Summary March 31, 2018 City of Huntington Beach 2000 Main St Huntington Beach, 60.15 13.34 2.17 11.38 8.63 4.32 1,412 608 1,242 180 182 847 1 109 533 112 103 1.454 1.503 1.093 1.626 1.921 1.565 1.474 1.524 1.109 1.649 1.947 1.587 100.00% 1,027 587 1.517 1.53.9 Par Market Book % of Days to VIM VIM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues - Coupon Local Agency Investment Funds Medium Term Notes -13RD Corporate Bonds Commercial Paper Disc. -Amortizing Federal Agency Disc. -Amortizing Investments 138,405,000.00 30,706,095.24 5,000,000.00 26,000,000.00 20,000,000.00 10,000,000.00 230,111,095.24 135,793,413.90 30,706,095.24 4,984,350.00 25,838,220.00 19,857,500.00 9,949,300.00 227,126,879.14 138,500,239.89 30,706,095.24 4,996,549.75 26,200,261.13 19,879,972.23 9,956,174.07 230,239,292.31 Total Earnings Current Year Current Budget Last Year Actual Average Daily Balance Effective Rate of Return March 31 Month Ending 284,797.68 160,000.00 229,563.85 224,287,046.45 1.50% Fiscal Year To Date 1,524,112.31 960,000.00 1,260,072.33 209,188,316.18 1.46% Fiscal Year Ending 1,920,000.00 2,752,784.09 I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on February 5, 2018, A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. LLD-HP Alisa Cutchen, CITY TREASURER Reporting period 03101/2018-03/3112018 Portfolio CITY AP Run Date: 04/20/2018 - 13:33 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.3b HB -37-Item 2. - 28 1.620 1.250 1.600 1.050 2.000 1.750 1.000 1.250 1.000 1.000 1.280 1.500 1.500 1.650 1.750 1.875 1.875 1.500 1.500 2.125 1.040 1.400 1.500 1.500 1.250 1.500 2.000 1.000 1.950 AA AA AA AR AA AA AA AA AA AA AR AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA 1.620 1.250 1.600 1.518 1.297 1.750 0.991 1.919 1.000 0.998 1.280 1.500 1.400 1.650 1.744 1.723 1.733 1.521 1.521 2.125 1.040 1.400 1.505 1.500 1.250 1.500 1.825 1.000 1.950 1,170 418 1,004 862 530 1,487 117 814 89 453 913 1,186 1,186 1,331 880 1,213 1,234 514 516 1,550 208 438 1,186 997 453 1,004 1,205 389 1,341 City of HB Portfolio Management Page 1 Portfolio Details - Investments March 31, 2018 Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues - Coupon 3133EGEV3 3130A7WK7 3130A8DC4 3130A8T94 313383VN8 3130AB3L8 3134G7302 3134G9R,N9 3134G9UY1 3134G9F93 3134G9E78 3134G9C54 3134G9G35 3134GAUB8 3134GBN N8 3134G9N94 3134G92Y2 3134GBNS7 3134GBLT7 3134GBTS1 3136G2R58 3135GOK85 3136G3SJ5 3136G3SN6 3135GOK93 3136G3UTO 3136G3VU6 3136G3YG4 3136G4HM8 4140 Federal Farm Credit Bank 4136 Federal Home Loan Bank 4138 Federal Home Loan Bank 4153 Federal Home Loan Bank 4157 Federal Home Loan Bank 4166 Federal Home Loan Bank 4120 Federal Home Loan Mort Corp 4139 Federal Home Loan Mort Corp 4142 Federal Home Loan Mort Corp 4148 Federal Home Loan Mort Corp 4149 Federal Home Loan Mort Corp 4150 Federal Home Loan Mort Corp 4151 Federal Home Loan Mort Corp 4156 Federal Home Loan Mort Corp 4256 Federal Home Loan Mort Corp 4257 Federal Home Loan Mort Corp 4258 Federal Home Loan Mort Corp 4259 Federal Home Loan Mort Corp 4260 Federal Home Loan Mort Corp 4261 Federal Home Loan Mort Corp 4122 Fed. Nat'l Mort. Assoc. 4137 Fed. Nati Mort. Assoc. 4141 Fed. Narl Mort. Assoc. 4143 Fed. Nat'l Mort. Assoc.. 4144 Fed. Nat'l Mort. Assoc. 4146 Fed. Nati Mort. Assoc. 4147 Fed. Nan Mort. Assoc. 4152 Fed. Nan Mort. Assoc. 4159 Fed. Nan Mort. Assoc. 05/15/2016 05/24/2016 05/30/2016 08/10/2016 11/16/2016 04/27/2017 10/27/2015 06/23/2016 06/29/2016 06/30/2016 06/30/2016 06/30/2016 06/30/2016 11/22/2016 05/30/2017 06/14/2017 06/14/2017 06/14/2017 06/15/2017 06/29/2017 10/29/2015 06/13/2016 06/30/2016 06/23/2016 06/28/2016 06/30/2016 07/19/2016 07/25/2016 12/02/2016 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 4,852,950.00 4,946,000.00 2,192,242.50 4,928,150.00 4,986,950.00 4,936,700.00 4,985,950.00 4,944,950,00 4,989,600.00 4,906,300.00 4,857,700.00 4,468,241.40 4,875.050.00 4,780,550.00 4,897,200.00 4,895,550.00 4,898,400.00 2,965,080.00 2,963,490.00 4,873,950.00 4,971,700.00 4,953,800.00 4,818,400.00 2,927,010.00 4,929,850.00 4,877,050.00 4,893,600.00 7,407,150.00 4,869,850.00 5,000,000.00 5,000,000.00 2,250,000.00 5,000,000.00 5,049,864.60 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.03 5,000,000.00 4,655,000.00 5,000,000.00 5,000,000.00 5,000,742.29 5,024,194.20 5,022,976.98 2,999,137.97 2,999,135.66 5,000,000.00 5,000,000.00 5,000,000.00 4,999,188.19 3,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 06/14/2021 05/24/2019 12130/2020 08/10/2020 09/13/2019 04/27/2022 07/27/2016 06/23/2020 06/29/2018 06/28/2019 09/30/2020 06/30/2021 06/30/2021 11/22/2021 08/28/2020 07/27/2021 08/17/2021 08/28/2019 08/30/2019 06/29/2022 10/26/2018 06/13/2019 06/30/2021 12/23/2020 06/28/2019 12/30/2020 07/19/2021 04/25/2019 12/02/2021 Subtotal and Average 139,792,440.27 138,405,000.00 135,793,413.90 138,500,239.89 1.474 847 Local Agency Investment Funds SYS982 982 Laif City 30,706,095.24 30,706,095.24 30,706,095.24 1.524 1.524 Subtotal and Average 23,480,288.79 30,706,095.24 30,706,095.24 30,706,095.24 1.524 1 Portfolio CITY AP Run Cate: 04/20/2018 - 13:33 PM (PRF_PM2) 7.3.0 Report Var. 7.3.3b HB -38-Item 2. - 29 2.850 2.150 1.400 1.875 1.850 1.150 2.375 2.000 PA A AA AA A AA PA AA 1,980 1.817 1.303 1.630 2.008 1.258 1.731 1.500 1,131 694 537 61 700 0 289 206 1.649 533 City of HB Portfolio Management Page 2 Portfolio Details - Investments March 31, 2018 CUSIP Investment # Issuer Average Balance Purchase Date Par Value Market Value Stated Book Value Rate YTM Days to Maturity S&P 365 Maturity Date Medium Term Notes -1BRD 459058F68 4158 Intl Bk Recon & Development 11/18/2016 5,000,000.00 4,984,350.00 4,996,549.75 0.876 AAA 1.109 109 07/19/2018 Subtotal and Average 4,996,101.47 5,000,000.00 4,984,350.00 4,996,549.75 1.109 109 Corporate Bonds 4262 4155 4154 4077 4164 4049 4071 4039 037833AR1 0641:16HCZ0 17275R 806 268648AP7 494368BP7 191216BA7 68389XA08 89236TAY1 Apple Inc. Bank of New York Cisco Systems Inc EMC Corp Kimberly Clark Corp Coca Cola Co Oracle Corp Toyota Motor Credit Subtotal and Average 06/26/2017 10/24/2016 09/27/2016 07/14/2015 12/28/2016 02/24/2015 05/26/2015 01/26/2015 26,294,306.23 5,000,000.00 5,000,000.00 3,000,000.00 2,500,000.00 2,000,000.00 2,500,000.00 3,000,000.00 3,000,000.00 26,000,000.00 5,003,050.00 4,933,500.00 2,952,060.00 2,493,050.00 1,966,520.00 2,500,000.00 3,000,000.00 2,990,040.00 26,838,220.00 5,129,027.16 5,049,005.25 3,004,170.87 2,500,992.29 1,994,156.43 2,500,000.00 3,014,722.87 3,008,186.26 26,200,261.13 05/06/2021 02/24/2020 09/20/2019 06/0112018 03/01/2020 04/01/2018 01/15/2019 10124/2018 Commercial Paper Disc. -Amortizing 06538CHT1 4255 BANK OF TOKYO-MIT NY 02/28/2018 5,000,000.00 4,952,000.00 4,955,805.56 2.150 2.204 148 08/27/2018 46640QGA3 4283 „IP Morgan 01/11/2018 15,000,000.00 14,905,500.00 14,924,166.67 1.820 A-1 1.862 100 07/10/2018 Subtotal and Average 19,864,118.06 20,000,000.00 19,857,500.00 19,879,972.23 1.947 112 Federal Agency Disc. -Amortizing 3133135ZG4 4284 Federal Home Loan Bank 01/12/2018 10,000,000.00 9,949,300.00 9,956,174.07 1.532 AA 1.587 103 07/13/2018 Subtotal and Average 9,949,791.65 10,000,000.00 9,949,300.00 9,956,174.07 1.687 103 Total and Average 224,287,046.45 230,111,095.24 227,128,879.14 230,239,292.31 1.539 587 Portfolio CITY AP PM (PRF_PM2) 7.3.0 Run Date: 0412012018 - 13:33 HB -39-Item 2. - 30 5,000,000.00 982 SYS982 1.524 8,000,000.00 5,000,000.00 8,000,000.00 8,000,000.00 10,000,000.00 Laif City Subtotal Medium Term Notes -IBRD Subtotal Corporate Bonds Subtotal Commercial Paper Disc. -Amortizing Subtotal Federal Agency Disc. -Amortizing Subtotal Total 30,706,095.24 4,996,549.75 26,200,261.13 19,879,972.23 9,956,174.07 230,239,292.31 City of HB Portfolio Management Activity By Type March 1, 2018 through March 31, 2018 Stated Transaction Purchases Redemptions CUSIP Investment # Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues - Coupon 313378A43 4048 Federal Home Loan Bank 1.375 03/0912018 0.00 5,000.000.00 Subtotal 0.00 6,000,000.00 138,500,239.89 Local Agency Investment Funds (Monthly Summary) Page 1 Portfolio CITY AP Run Date: 0412012018-13:33 PM (PRF PM3) 7.3.0 Report Var. 7.3.3b HB -40-Item 2. - 31 City of HB Portfolio Management Page 1 Activity Summary March 2017 through March 2018 Yield to Maturity Managed Pool Rate Number of Investments Purchased Number of Investments Redeemed Month End Number of Year Securities Average Balance 360 366 Equivalent Equivalent Average Term Average Days to Maturity March April May June July August September October November December January February March 2017 47 213,717,521.37 2017 48 213,723,352.90 2017 49 225,340,416.22 2017 52 231,210,075.29 2017 50 227,046,68712 2017 47 208,273,796.65 2017 46 201,272,141.13 2017 45 196,034,063.90 2017 44 188,015,052.55 2017 41 196,385,752.92 2018 42 224,063,945.55 2018 43 227,425,960.54 2018 42 224,287,046.45 1.315 1.351 1.343 1.402 1.398 1.399 1.415 1.437 1.439 1.414 1.473 1.495 1.517 1.333 1.370 1.361 1.422 1.417 1.418 1.435 1.457 1.459 1,433 1.493 1.516 1.539 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 1.350 1.412 1.524 0 2 6 2 3 2 3 3 1,136 1,174 1,123 1,219 1,246 1,258 1,275 1,310 1,310 1,114 1,061 1,043 1,027 788 827 772 866 845 843 835 839 821 688 642 608 587 Average 46 213,545,888.15 1.415% 1.435% 1.130 1 1 1,177 766 Portfolio CITY AP Run Date: 04/20/2018 -13;33 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b HB -41-Item 2. - 32 City of HB Portfolio Management Page 1 Interest Earnings Summary March 31, 2018 CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses March 31 Month Ending 155,875.00 645,296.32 580,789.38) 0.00) 220,381.94 34,023.88 0.00 254,405.82 0.00 0.00 0.00 0.00 0.00 98,037.87 67,646.01) 30,391.86 250,773.80 34,023.88 0.00 Fiscal Year To Date 1,446,643.33 645,296.32 717,589.16) 0.00) 1,374,350.49 25,216.35 0.00 1,399,566.84 0.00 0.00 0.00 0.00 50,074.88 98,037.87 23,567.28) 124,545.47 1,498,895.96 25,216.35 0.00 0.00 0.00 0.00 0.00 0.00) 0.00) 0.00) 0.00) Total Earnings during Period 284,797.68 1,524,112.31 Portfolio CITY AP Pm (PRF_PM6) 7.3.0 Report Ver. 7.3.3b HB -42-Item 2. - 33 yMEST4fe. State of California 4, 4' PMIA vc, Pooled Money Investment Account ° ,wareat c-, `i.. Market Valuation ...,4, 3/31/2018 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury: Bills $ 13,168,305,302.64 $ 13,234,864,134.73 $ 13,222,380,000.00 NA Notes $ 20,061,143,353.89 $ 20,057,667,338.99 $ 19,930,705,000.00 $ 47,380,533.00 Federal Agency: SBA $ 867,145,314.00 $ 867,088,008.74 $ 856,981,629.70 $ 1,270,724.33 MBS-REMICs $ 31,003,570.83 $ 31,003,570.83 $ 31.753,574.99 $ 145,081.69 Debentures $ 1,363,946,135.19 $ 1,363,919,399.07 $ 1,353,611,900.00 $ 2,644,921.75 Debentures FR $ - $ - $ - $ - Debentures CL $ 350,000,000.00 $ 350,000,000.00 $ 345,893,500.00 $ 689,278.50 Discount Notes $ 10,376,049,638.66 $ 10,419,274,485.93 $ 10,413,696,000.00 NA Supranational Debentures $ 449,199,891.07 $ 449,199,891.07 $ 446,463,500.00 $ 687,154.00 Supranational Debentures FR $ 50,000,000.00 $ 50,000,000.00 $ 50,061,500.00 $ 189,741.67 CDs and YCDs FR $ 425,000,000.00 $ 425,000,000.00 $ 425,000,000.00 $ 1,320,201,70 Bank Notes $ 900,000,000.00 $ 900,000,000,00 $ 898,914,388.05 $ 3,624,888.87 CDs and YCDs $ 13,925,000,000.00 $ 13,925,000,000.00 $ 13,916,261,691.08 $ 47,875,722.25 Commercial Paper $ 7,257,225,888.87 $ 7,279,648,291.66 $ 7,276,043,749.97 NA Corporate: Bonds FR $ - $ - $ - $ - Bonds $ - $ - $ - $ - Repurchase Agreements $ - $ - $ - $ - Reverse Repurchase $ - $ - $ - $ - Time Deposits $ 5,031,740,000.00 $ 5,031,740,000.00 $ 5,031,740,000.00 NA AB 55 & GF Loans $ 716,647,000.00 $ 716,647,000.00 $ 716,647,000.00 NA TOTAL $ 74,972,406,095.15 $ 75,101,052,121.02 $ 74,916,153,433.79 $ 105,828,247.76 Fair Value Including Accrued Interest $ 75,021,981,681.55 * Governmental Accounting Standards Board (GASB) Statement #72 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost (0.997538001). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,950,760.03 or $20,000,000.00 x 0.997538001. HB -43-Item 2. - 34 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department March 2018 Cash Receipts and Disbursements February 2018 March 2018 Receipts General Fund Property Tax Local Sales Tax Public Safety Sales Tax Transient Occupancy Tax (TOT) Utility Users Tax (UUT) Other Revenue Total General Fund Revenue Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Receipts Disbursements General Fund Personal Services Operating Expenses Capital Expenditures Non-Operating Expenses 115,166 3,544,200 182,127 747,856 1,581,912 3,924,564 10,095,825 293,049 454,962 4,733,643 261,856 502,414 361,252 506,729 934,042 $18,143,773 (12,036,371) (3,355,017) (137,207) (563,567) 4,072,235 3,723,192 260,465 961,424 1,538,766 5,264,950 15,821,032 150,624 - 5,039,746 251,673 - 4,937,240 1,310,798 1,135,475 $28,646,588 (11,358,779) (2,879,974) (163,671) (6,965,298) Total General Fund Disbursements (16,092,162) (21,367,722) HB -44-Item 2. - 35 Capital Projects Funds Debt Service Funds Enterprise Funds General Fund Other Internal Service Funds Special Revenue Funds Grant Funds Trust and Agency Funds Total Disbursements Net Change in Cash Flow Summary of Cash by Fund General Fund General Fund Other Capital Projects Funds Debt Service Funds Enterprise Funds Trust and Agency Funds Internal Service Funds Special Revenue Funds General Ledger Cash Balances (980,940) (233,988) (4,906,108) (305,386) (699,448) (1,090,926) (953,123) (988,116) (26,250,197) ($8,106,424) February 2018 $73,879,962 4,190,297 17,136,528 251,991 75,858,011 15,081,048 20,852,211 29,767,590 * $237,017,638 (753,207) (3,742,535) (418,725) (638,463) (1,341,246) (550,914) (2,047,420) (30,860,232) ($2,213,644) $237,366,277 March 2018 $63,929,289 4,023,246 22,359,401 33,751 76,418,829 14,501,547 21,981,767 34,118,446 * Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. HB -45-Item 2. - 36 City of Huntington Beach Quarterly Treasurer’s Report Quarter Ending: March 31, 2018 Prepared by: Alisa Cutchen, CCMT, CPFIM, City Treasurer HB -46-Item 2. - 37 Economic and Market Overview - At 3/31/18  12-month Inflation Rate (Core PCE Price Index): 1.6% Unemployment stable at 4.1%, lowest since 2000  Federal Reserve raised interest rates: Fed Funds 1.50%-1.75%  Equity Market Volatility – U.S. China Trade Relations 12/31/17 03/31/18 % Chg DJIA: 24,719 24,103 2.5% S&P: 2,674 2,641 1.2% HB -47-Item 2. - 38 Interest Rates – Rising 2-year Treasury 9/8/17: 1.27% 4/18/18: 2.43% Rate increased by approx. 1.2% since September 2017 HB -48-Item 2. - 39 Portfolio Summary As of 3/31/18 Investment Type / Market Value: •Federal Agencies - $145.7MM •Corporate Bonds - $25.8MM •Commercial Paper - $19.9MM •LAIF - $30.7MM •IBRD - $5.0MM TOTAL PORTFOLIO: $227.1MM HB -49-Item 2. - 40 Investments by Type As of March 31, 2018 Federal Agencies incl. Disc. Note 64% Commercial Paper 9% Corporate Bonds 12% LAIF 13% IBRD 2% HB -50-Item 2. - 41 Monthly Portfolio Earnings – April 2017 to March 2018 HB -51-Item 2. - 42 Recent Changes affecting Investment Portfolio  Revised Fiscal Year ending June 30, 2018  CalPERS UAL Prepayment of $24.9 million due end of July, 2018 and each July thereafter  $ “set aside” for CalPERS payment invested to mature in July  Recent Interest Rate increases  Liquidity Projected above monthly $20 million minimum goal for 2018 HB -52-Item 2. - 43 Portfolio Earnings - As of March 31, 2018 Current Year - Month March, 2018: $284,798 24% vs. last year: $229,564 Current Year - Fiscal YTD Through 3/31/18: $1,524,112 21% vs. last year: $1,260,072 Effective Rate of Return March, 2018: 1.50% Fiscal YTD: 1.46% Solid Return & Liquidity: $36.7 million in LAIF/Bank (Added liquidity)  $25 million for CalPERS UAL pmt in July HB -53-Item 2. - 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 Commercial Paper 270 days 25% A-1/P-1 LAIF n/a $65MM per n/a account HB -54-Item 2. - 45 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, April 2, 2018 4:30 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:30 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ Based on the limited amount of time needed to cover items in Study Session and Closed Session, the meeting was called to order at 4:30 PM. 4:30 PM - COUNCIL CHAMBERS CALLED TO ORDER — 4:30 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: Study Session: Item No. 1 - PowerPoint communication entitled CPAB 2018-19 Recommendations received from Deputy Director of Economic Development Kellee Fritzal PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) — None STUDY SESSION 1. Presentation by City staff and members of the Citizen Participation Advisory Board (CPAB) on Community Development Block Grant (CDBG) Funding Recommendations CPAB ROLL CALL Present: Mike Massie, Paul Morrow (Vice-Chair) Absent: Peter Andres, Shelly Grace-Bowers (Chair), Chris Byrne, Ken Evans, Donna Traversi (Secretary) No Quorum HB -55-Item 6. - 1 Council/PFA Regular Minutes April 2, 2018 Page 2 of 20 Deputy Director of Economic Development Kellee Fritzal presented a PowerPoint communication entitled CPAB 2018-19 Recommendations with titled slides: Estimated HUD Allocations 2018-19, CDBG Allocation Process, 2018-19 CPAB Recommendations for Community Development Block Grant Funding, Public Services 15% Cap (3), Admin, Housing & Code Enf., Public Improvements, Staff Recommendation, 2018/19 HOME, 2018/19 HOME Projects, Next Steps, and Questions Mayor Pro Tem Peterson and staff discussed funding amounts referenced for Homeless Outreach and HB Public Library/Oakview Family Literacy. Councilmember Delgleize voiced her opinion of the importance of both the Homeless Outreach and the Oakview Family Literacy efforts. Councilmember Brenden and staff discussed details for Senior Care Management, the Section 108 loan, and funding of the Central Library restroom renovation. Councilmember Brenden stated his support for finding ways to direct more funding for the homeless. Councilmembers O'Connell and Semeta concurred they would like to see more funding available for homeless issues, and Deputy Director Fritzal explained there are some other funding options. Councilmember Hardy expressed her support for the CPAB recommendations because they have looked at all of the details, including other funding sources. Mayor Posey, CPAB members and staff recognized funding caps, discussed bringing in new programs, and highlighted basic services provided. Mayor Posey echoed each Councilmember's appreciation for the time and effort that staff and CPAB members put into these recommendations. RECESS TO CLOSED SESSION – 4:54 PM A motion was made by Peterson, second Semeta to recess into Closed Session for Items 2 – 7. 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: Management Employees' Organization (MEO), and Surf City Lifeguard Employees' Association (SCLEA). CLOSED SESSION 2. Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators and Fred Wilson, City Manager regarding the following: Management Employees’ Organization (MEO), and Surf City Lifeguard Employees’ Association (SCLEA). 3. Pursuant to Government Code §54956.9(d)(2) the City Council recessed into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, four (4). HB -56-Item 6. - 2 Council/PFA Regular Minutes April 2, 2018 Page 3 of 20 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: Angela Hernandez v. City of Huntington Beach, et al., U.S. District Court Case No: 8:17-cv-01257 AG (KESx). 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: Mark Cunningham v. City of Huntington Beach, Orange County Superior Court Case No.: 30- 2017-00902748. 6. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Debbie Mallery v. City of Huntington Beach, Orange County Superior Court Case No.: 30-2017-00940742. 7. 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: Michael and Todd Bartlett v. City of Huntington Beach/Michael Baumgartner, Orange County Superior Court Case No. 30-2015-00778560. 6:00 PM – COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:01 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember O’Connell INVOCATION — Given by Charlie Niederman of Temple Beth David and member of the Greater Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. AWARDS AND PRESENTATIONS Mayor Posey presented the Fair Housing Month proclamation to Outreach Coordinator, Stephanie Luu of the Fair Housing Foundation. This year marks the 50th Anniversary of the Federal Fair Housing Act. Ms. Luu thanked the City for declaring April as Fair Housing Month. Mayor Posey presented a commendation to internationally-famous pastry chef Paul Gauweiler, owner of the oldest bakery in Huntington Beach, The Cake Box. Mr. Gauweiler stated that The Cake Box opened for business on May 1, 1973, and he has the only German specialty Baumkuchen oven in the U. S. CLOSED SESSION REPORT BY CITY ATTORNEY — City Attorney Gates reported that as some already know, a citizen advocate has recently submitted a Notice of Intent to Circulate a Petition to place a measure on this November's ballot to "ban the possession and sale of semi-automatic and automatic HB -57-Item 6. - 3 Council/PFA Regular Minutes April 2, 2018 Page 4 of 20 guns and rifles" in the City of Huntington Beach, calling upon such Huntington Beach gun owners to turn in their weapons to the Huntington Beach Police Department by January 1, 2019. Some residents have already received this Petition by mail. While the California Law requires that the City of Huntington Beach and the City Attorney facilitate, and even assist, a citizen advocate with a Petition, preparing a Petition Statement, and preparing a Ballot Measure (no matter what the issue proposed) this particular proposed gun ban is overly broad and un- Constitutional - as it violates the Second Amendment of the U. S. Constitution, among other Federal laws. City Attorney Gates thanked the City Council for accepting and approving his recommendation in Closed Session earlier in the evening, in a 7-0 vote, to allow him to file a lawsuit in the Superior Court of California seeking an injunction to prevent this proposed gun ban (which violates the Second Amendment of the U. S. Constitution) from being placed on the November 2018 ballot altogether. City Attorney Gates stated that the City is ready and willing to fight to defend the rights of its citizens and defend the law. 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: Awards & Presentations Email communication regarding Huntington Beach Community Service Day received from Dan Jamison. Consent Calendar: Item No. 1 - Inter-departmental Communication received from City Clerk Robin Estanislau - correction to Agenda Item No. 1, City Council Draft Minutes dated 3/19/2018. Administrative Items: Item No. 13 - A PowerPoint communication entitled Central Park West Organic Chemical Pilot Study & Organic Turf Management received from Public Works. - 11 email communications regarding chemicals and pesticides received from: Linda Eddy Dan Jamison Carol Keane Karen Coyne Tim Kowal Jennifer Squires-Will Cynthia Romanowski - 71 postcards received regarding chemicals and pesticides Councilmember Items: Item No. 14 - Letter received from Kelly Miller, Visit Huntington Beach regarding Art in Public Places Master Plan - 20 email communications received regarding Art in Public Places Master Plan Item No. 15 - 64 email communications received regarding challenge to SB 54 - 17 postcards received regarding challenge to SB 54 - 5 phone calls in support, and 2 calls opposed, to challenge to SB 54 HB -58-Item 6. - 4 Council/PFA Regular Minutes April 2, 2018 Page 5 of 20 *Mayor Posey and Councilmember Semeta announced that Councilmember Item No. 14, regarding Art in Public Places Master Plan, would be continued to the April 16th meeting, and public speakers for that topic could feel free to return on that date. PUBLIC COMMENTS (2 Minute Time Limit) — 107 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. Due to technical difficulties experienced during live internet stream, some speaker comments did not receive an archived timestamp. Congressman Dana Rohrabacher, 48th District, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:43:23) Don Barnes, Undersheriff, Orange County Sheriff's Department, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:47:19) Rabbi Stephen Einstein, Founding Rabbi Emeritus of Congregation B'nai Tzedek and Past President of the Greater Huntington Beach Interfaith Council, was called to speak, quoted scripture and asked Councilmembers to reflect on scripture as they deliberate Councilmember Item No. 15, Challenge to SB 54. (00:49:39) An unnamed woman was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:52:06) Sid Spinak, a resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:54:41) An unnamed man identifying himself as a teacher was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:55:56) Stella Stevens, representing Concerned Citizens of California, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (00:58:17) Patrice Lynes was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:00:24) Kenny Strawn, resident of Mission Viejo, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:01:18) Arthur Schaper was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:02:41) An unnamed man was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:05:00) Cari Swan was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:06:56) Gracey Van Der Mark was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:09:16) HB -59-Item 6. - 5 Council/PFA Regular Minutes April 2, 2018 Page 6 of 20 Robin Hvidston, Director, We the People Rising, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:11:58) Bethany Webb, HB Huddle, was called to speak and stated support for Administrative Item No. 13, expansion of Central Park West Organic Chemical Pilot Study, and opposition to Councilmember Item No. 15, Challenge to SB 54. (01:13:32) Lesa Antone, former resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:15:29) Jennifer Harrison, resident of Phoenix, AZ, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:17:40) Vaughn Becht, resident of Orange County, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:19:25) Daniel Amiel, resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:20:41) Skye Wagoner, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (01:22:49) Stelain Onufrei, resident of Huntington Beach, Republican Congressional Candidate for District 48, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:25:13) Robert Lauten was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:26:37) Nikki Soltero was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:28:34) Lyna Runfola was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:30:55) Leonor Ferris was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:33:12) Genevieve Peters was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:34:31) Eisa Aldeguer, representing Latinos for Trump, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:36:48) Betty Robinson, lifelong resident of Southern California, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:38:22) Mike Wright was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:40:35) Mike McCoy was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:42:03) HB -60-Item 6. - 6 Council/PFA Regular Minutes April 2, 2018 Page 7 of 20 Sylvia Calhoun, a resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:44:18) Jennifer Martinez, a resident of Orange County, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:46:25) Jessica Runfola, an Orange County resident who spent her childhood in Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:48:17) Stella Song, resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:50:28) William Larkin, a Huntington Beach resident, was called to speak and stated support for Councilmember Item No. 14, Art in Public Places Master Plan, and Item No. 15, Challenge to SB 54. (01:52:43) Gerald Thomas, resident of Orange, CA, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:53:25) Anna, resident of Los Alamitos, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:55:40) Jonathan Adler was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (01:56:58) Joseph Chan was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:00:06) Greg Susca was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:02:19) Chanell Temple was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:04:44) Janet West was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:07:00) An unnamed gentleman was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:08:47) Mary Kyle, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:10:39) Shayna Lathus, teacher, resident of Huntington Beach and City Council candidate, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:12:36) Susan Kadota, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:15:10) Harim Vzziel was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:17:00) HB -61-Item 6. - 7 Council/PFA Regular Minutes April 2, 2018 Page 8 of 20 Pamela Pauline was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:20:09) Mike Tolhes was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:22:22) Frank Zappia, resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:23:18) Louie Reyes was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:25:26) Dura Young was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:27:35) Maureen was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:29:31) Ian La Fontaine, resident of La Palma, CA, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:31:18) Crystal Jade was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:32:25) Ted Ross was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (timestamp information not recorded) Michael Scott was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (timestamp information not recorded) Wes Parker was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (timestamp information not recorded) Sheryl Martinez, resident of Fountain Valley, was called to speak and stated opposition for Councilmember Item No. 15, Challenge to SB 54. (timestamp information not recorded) Fred McIntosh, resident of Downey, CA, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (timestamp information not recorded) Kim Sorgente, Huntington Beach homeowner, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:34:48) David Feiner, The Red Elephants, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:37:00) Joe Imbriano, runs Fullerton Informer website, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:39:24) Mark Tonkovich, Huntington Beach homeowner, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:42:36) HB -62-Item 6. - 8 Council/PFA Regular Minutes April 2, 2018 Page 9 of 20 Andi Kowal, Non-Toxic Huntington Beach, was called to speak and stated support for Administrative Item No. 13, expansion of Central Park West Organic Chemical Pilot Study. (02:45:10) Tim Phan, OC Young Democrats, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:46:46) Stacy Alynn, Orange County resident, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:49:00) Roger Gooding was called to speak and requested that the City Council get involved in setting up regulations for drug and alcohol rehab housing. Mayor Posey asked him to complete a blue card for staff follow-up. (02:49:57) Kathryn Levassiur was called to speak and asked that the City Council bring back the topic of short term vacation rentals in the very near future. (02:52:11) Shelly Peterson was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (02:53:19) John Bostick, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:55:27) Clare Bostick resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:57:41) Derek Bercher, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (02:59:39) Thomas Christiansen, resident of Orange County, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:02:26) Oscar Rodgriguez, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:04:26) A BRIEF, 5-MINUTE RECESS WAS TAKEN Ruben Barreto, a resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:13:18) Wendy Rincon, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:15:01) Shawn Roselins was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:17:17) Akosh Hawkins, candidate for 34th District, State Senate, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:18:20) Eva Weisz, a resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:19:38) HB -63-Item 6. - 9 Council/PFA Regular Minutes April 2, 2018 Page 10 of 20 Jerry Barry, a resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:22:14) Karen Coyne, HB Huddle, was called to speak and stated support for Administrative Item No. 13, expansion of Central Park West Organic Chemical Pilot Study, and opposition to Councilmember Item No. 15, Challenge to SB 54. (03:23:49) Barbara Farrell, CLUE/Los Alamitos Community United, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:26:07) Greg Haskin was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:28:17) Cynthia Valencia, ACLU of Southern California, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:29:07) Omar Siddiqui, Congressional Candidate for District 48, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:31:06) Luis Aleman was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:33:46) An unnamed man was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:36:00) Victor Valledares, Oak View ComUNIDAD, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:38:14) Bobbi Ashurst was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:40:25) Ursula Yager, resident of Irvine, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:42:50) Donna Pearma was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:45:07) Jennifer Sterling was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:47:17) Catherine Johnson, resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:49:31) Miriam Fogler was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (03:51:49) John Earl was called to speak and stated several personal observations. (03:55:08) Cathey Ryder, resident of Huntington Beach, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (03:57:22) HB -64-Item 6. - 10 Council/PFA Regular Minutes April 2, 2018 Page 11 of 20 Cynthia Romanowski, resident of Huntington Beach, HB Huddle, was called to speak and stated support for Administrative Item No. 13, expansion of Central Park West Organic Chemical Pilot Study, and opposition to Councilmember Item No. 15, Challenge to SB 54. (03:58:41) Aubrey Roy, HB Huddle, was called to speak and stated support for Administrative Item No. 13, expansion of Central Park West Organic Chemical Pilot Study, and opposition to Councilmember Item No. 15, Challenge to SB 54. (04:00:50) Bill McCarty was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (04:03:01) Bill Martin, a resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:04:31) Crystal Myers-Barber, a resident of Santa Ana, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:06:47) Jeff Benson was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:08:12) Spencer Kelly, Huntington Beach resident, was called to speak and stated opposition to Councilmember Item No. 15, Challenge to SB 54. (04:10:32) Luimar Z. Garza, visitor from Miami, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:12:09) Omar Navarro, candidate for the 43rd Congressional District, was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:14:32) An unnamed woman was called to speak and stated support for Councilmember Item No. 15, Challenge to SB 54. (04:15:39) A motion was made by Brenden, second O'Connell to introduce Councilmember Item No. 15 out of its original, agendized order. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None Mayor Posey announced a 5-minute recess at 10:45 PM. The meeting reconvened at 10:50 PM. **Action on Councilmember Item No. 15 is documented in its original, agendized order. COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Brenden reported attending a meeting of the Beautification, Landscape, and Tree Committee which approved tree removal and replacement plans for several areas, and the Air Traffic Noise Working Group meeting where progress is being made through community involvement and support, and he expects to have a community workshop scheduled before the end of April. HB -65-Item 6. - 11 Council/PFA Regular Minutes April 2, 2018 Page 12 of 20 Councilmember Delgleize reported attending an Association of California Cities - Orange County (ACC- OC) roundtable on sober living homes where the Florida Attorney General spoke, and he offered to work with local officials and share Florida's experiences in legally dealing with this issue for the last 10 years. Councilmember O'Connell reported attending a Board of Directors meeting of the Association of California Cities - Orange County (ACC-OC) which discussed their opposition to upcoming State Senate criminal laws. Mayor Posey reported attending an Orange County Council of Governments (OCCOG) General Assembly meeting on sustainability where Huntington Beach Assistant to the City Manager Antonia Graham made a presentation. CITY MANAGER’S REPORT — None CONSENT CALENDAR 1. Approved and adopted minutes A motion was made by Brenden, second Delgleize to approve and adopt the City Council/Public Financing Authority regular meeting minutes dated March 19, 2018, on file in the Office of the City Clerk and as amended by Supplemental Communication. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 2. Approved Fiscal Year 2016-17 Annual Compliance Reports for Public Library, Parkland Acquisition and Park, Law Enforcement and Fire Suppression Facilities Development Impact Fees (DIF); Planned Local Drainage and Sanitary Sewer Facilities Funds and Fair Share Traffic Impact Mitigation Fee Program A motion was made by Brenden, second Delgleize to approve the Annual Compliance Report, "Public Library Facilities Development Impact Fees Annual Report Fiscal Year 2016-17;" and, approve the Annual Compliance Report, "Parkland Acquisition and Park Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, approve the Annual Compliance Report, "Law Enforcement Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, approve the Annual Compliance Report, "Fire Suppression Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, approve the "Planned Local Drainage Facilities Fund Annual Compliance Report for Fiscal Year 2016- 17;" and, approve the "Sanitary Sewer Facilities Fund Annual Compliance Report Fiscal Year 2016-17;" and, approve the "Fair Share Traffic Impact Fee Program Annual Report for Fiscal Year 2016-17." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 3. Adopted and authorized recordation of Resolution No. 2018-18 ordering the Summary Vacation of the excess Right-of-Way Easement located at the Southwest Corner of Indianapolis Avenue and Florida Street HB -66-Item 6. - 12 Council/PFA Regular Minutes April 2, 2018 Page 13 of 20 A motion was made by Brenden, second Delgleize to adopt Resolution No. 2018-18, "A Resolution of the City Council of the City of Huntington Beach Ordering the Summary Vacation of the Excess Right-of-Way Easement Located at the Southwest Corner of Indianapolis Avenue and Florida Street"; and, instruct the City Clerk to record Resolution No. 2018-18 and the attached exhibits with the Orange County Recorder. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 4. Approved and authorized execution of a Memorandum of Understanding (MOU) between the City of Huntington Beach and Grant Partner Davenport Marina for the Installation and Maintenance of Marina Trash Skimmer at Davenport Marina A motion was made by Brenden, second Delgleize to approve and authorize the Mayor and City Clerk to execute "Memorandum of Understanding between the City of Huntington Beach and Davenport Marina for the Installation and Maintenance of Marina Trash Skimmer in Huntington Harbour." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 5. Approved and authorized execution of an Agreement for Construction of Periodic Nourishment of the Orange County Beach Erosion Control Project, Stage 13 for beach sand replenishment A motion was made by Brenden, second Delgleize to approve and authorize the Mayor and City Clerk to execute "Agreement for Construction of Periodic Nourishment of the Orange County Beach Erosion Control Project, Stage 13." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 6. Approved and authorized execution of Amendment No. 1 to Agreement with AKM Consulting Engineers, Inc. extending the term of the Agreement to June 1, 2020 (Edgewater Sewer Lift Station) A motion was made by Brenden, second Delgleize to approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Agreement between the City of Huntington Beach and AKM Consulting Engineers, Inc." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None HB -67-Item 6. - 13 Council/PFA Regular Minutes April 2, 2018 Page 14 of 20 7. Approved and authorized execution of a Professional Services Contract for On Call Construction Management and Engineering Services with Arcadis, U.S., Inc. (Arcadis) in an amount not to exceed $1,500,000 A motion was made by Brenden, second Delgleize to approve and authorize the Mayor and City Clerk to execute $1,500,000 "Professional Services Contract between the City of Huntington Beach and Arcadis, U.S., Inc. for On-Call Construction Management and Engineering Services." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 8. Approved and authorized execution of the Limited Term Partial Basin Equity Assessment Exemption Agreement between Orange County Water District (OCWD) and City of Huntington Beach (Financial Aid for the Well No. 9 Treatment Project, CC-1392) A motion was made by Brenden, second Delgleize to approve and authorize the Mayor and City Clerk to execute two original sets of the OCWD agreement dated October 4, 2017, "Limited Term Partial Basin Equity Assessment Exemption Agreement between Orange County Water District and City of Huntington Beach (Huntington Beach Well No. 9)" and return one signed set to OCWD. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 9. Adopted Ordinance Nos. 4131, 4132, 4133, 4144, 4145, and 4146 removing references to the California Government Code in certain sections of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) Approved for introduction 3/19/2018 - Vote: 6-0-1 (Brenden absent) A motion was made by Brenden, second Delgleize to adopt Ordinance No. 4131, "An Ordinance of the City of Huntington Beach Amending Chapter 201 of the Huntington Beach Zoning and Subdivision Ordinance Relating to the Purpose of the Zoning and Subdivision Ordinance;" and, adopt Ordinance No. 4132, "An Ordinance of the City of Huntington Beach Amending Chapter 203 of the Huntington Beach Zoning and Subdivision Ordinance Relating to Code Relating to Definitions;" and, adopt Ordinance No. 4133, "An Ordinance of the City of Huntington Beach Amending Chapter 215 of the Huntington Beach Zoning and Subdivision Ordinance Relating to the Specific Plan District Established;" and, adopt Ordinance No. 4144, "An Ordinance of the City of Huntington Beach Amending Chapter 215 of the Huntington Beach Zoning and Subdivision Ordinance Relating to Status of Specific Plan;" and, adopt Ordinance No. 4145, "An Ordinance of the City of Huntington Beach Amending Chapter 222 of the Huntington Beach Zoning and Subdivision Ordinance Relating to Statutory Authorization;" and, adopt Ordinance No. 4146, "An Ordinance of the City of Huntington Beach Amending Chapter 230.14 of the Huntington Beach Zoning and Subdivision Ordinance Relating to Affordable Housing Density Bonus." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None HB -68-Item 6. - 14 Council/PFA Regular Minutes April 2, 2018 Page 15 of 20 10. Adopted Ordinance No. 4159 approving Zoning Text Amendment No. 16-002 (Ellis- Goldenwest Specific Plan Equestrian Trail Realignment) Approved for introduction 3/19/2018 - Vote: 6-0-1 (Brenden absent) A motion was made by Brenden, second Delgleize to adopt Ordinance No. 4159, "An Ordinance of the City of Huntington Beach Amending SP7 (Ellis-Goldenwest Specific Plan) by Amending the Equestrian Trail Alignment (Zoning Text Amendment No. 16-002)." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None PUBLIC HEARING 11. Continued from March 19, 2018 - Adopt Resolution Nos. 2018-17, 2018-19 and 2018-20 to set municipal utility rates for water, and approve for introduction Ordinance No. 4157 amending Section 14.12.040 of Chapter 14.12 of the Huntington Beach Municipal Code (HBMC) regarding water meter rates and commodity rates, and approve for introduction Ordinance No. 4158 amending Section 14.54.040 and 14.54.060, deleting sections 14.54.110 and 14.54.120 and Chapter 14.55 of the Huntington Beach Municipal Code (HBMC) regarding sewer service user charges City Manager Wilson stated that the detailed presentation on this item was made at the March 19, 2018, City Council meeting and was continued to this meeting. Public Works Director Travis Hopkins introduced staff and presented a PowerPoint communication entitled Water and Sewer Rate Adjustment with titled slides: Water and Sewer Rates, Comparison of Monthly Water Bills, Recommended Actions, Items for Action, Finance Commission Recommendations, Base Meter Rate, Water Meter Charges, WMP Projects & Costs, Water Master Plan Fund Balance and Staff Recommended Actions, which included recommendations made by the Finance Commission. Mayor Pro Tem Peterson and Director Hopkins discussed the previous surcharge which was in effect from 1995 through 2007. Director Hopkins described the projected long-term costs and funding, and noted that this is re-evaluated every five years per Prop 218 requirements. Councilmember Delgleize asked how long this surcharge would be in effect, and Director Hopkins confirmed that the Finance Commission recommends 10 years with a 5-year review. Councilmember Delgleize asked staff to review ways to offset the increase for low income senior citizens. Councilmember Semeta inquired, and staff confirmed that another public hearing would not be required for a reduction in rates. Mayor Posey revisited the issue of comparing the Consumer Price Index (CPI) vs. Construction Cost Index (CCI), and asked Director Hopkins if the reality of the issue was considered in the $128M figure. Director Hopkins stated that actual costs and revenues will be re-evaluated at 5 years, and the $128M is based on current costs. Mayor Posey opened the Public Hearing. Public Hearing — 1 Speaker HB -69-Item 6. - 15 Council/PFA Regular Minutes April 2, 2018 Page 16 of 20 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: Public Hearing: Item No. 11 - Protest letter received from Harold Seeley regarding water meter rates, commodity rates and sewer service user charges. - Inter-department Communication received from Public Works Director Travis Hopkins regarding the Finance Commission Recommendations on Water and Sewer Rates. - PowerPoint communication entitled Water and Sewer Rate Adjustment received from Public Works Director Travis Hopkins. Ted Ross, resident of Huntington Beach, was called to speak and stated his opinion that by adopting the new Standard American Waterworks the City Council is creating an inversion in the tax base because meters greater than 1 inch will reflect a credit or loss in revenue. (05:28:13) There being no more speakers, Mayor Posey closed the Public Hearing. Councilmember Hardy and Director Hopkins discussed the apparent drop in rates for meters greater than 1 inch and the 4 inch compound, which is calculated on the amount of water passing through the meter. Director Hopkins explained that the larger meters can be used by larger homes as well as commercial and industrial locations. He also confirmed that the numbers under discussion show the Cost of Service which was used to determine revenue needs, and do not reflect a reduction in revenue. A motion was made by Delgleize, second Semeta to adopt Resolution 2018-17, "A Resolution of the City Council of the City of Huntington Beach Adjusting Water Meter Rates, Including a Capital Surcharge Pursuant to Section 14.12.040 of the Huntington Beach Municipal Code, as amended by Supplemental Communication to include Finance Commission recommendations to (1) provide a sunset of the water capital surcharge in 10 years; (2) delete the 1.5% increase in addition to the CPIU, leaving only the CPIU adjustment for future years; and (3) review method to offset the increase to low income Senior Citizens; and, adopt Resolution 2018-19, "A Resolution of the City Council of the City of Huntington Beach Adjusting Sewer Service User Charges Pursuant to Section 14.54.020 of the Huntington Beach Municipal Code;" and, adopt Resolution 2018-20, "A Resolution of the City Council of the City of Huntington Beach Readopting and Revising the City's Water Commodity Rates;" and, after the City Clerk reads by title, approve for Introduction Ordinance 4157, "An Ordinance of the City of Huntington Beach Amending Section 14.12.040 of Chapter 14.12 of the Huntington Beach Municipal Code Regarding Water Meter Rates and Water Commodity Rates Pursuant to California Health & Safety Code Section 5470, et seq;" and, after the City Clerk reads by title, approve for Introduction Ordinance 4158, "An Ordinance of the City of Huntington Beach Revising the Huntington Beach Municipal Code Regarding Sewer Service User Charges, by Amending Sections 14.54.040 and 14.54.060, Deleting Sections 14.54.110 and 14.54.120, and Deleting Chapter 14.55;" FIVE AFFIRMATIVE VOTES ARE REQUIRED TO ADOPT THE RESOLUTIONS AND ORDINANCES PER HEALTH AND SAFETY CODE SECTION 5471 The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, and Brenden NOES: O’Connell, and Peterson HB -70-Item 6. - 16 Council/PFA Regular Minutes April 2, 2018 Page 17 of 20 ADMINISTRATIVE ITEMS 12. Approved the appointment of Gilbert Garcia to the position of Chief Financial Officer (CFO) and authorized the City Manager to execute the Employment Agreement City Manager Wilson briefly described the national recruitment process for the position of Chief Financial Officer (CFO) which resulted in 40 applicants. A motion was made by Brenden, second Delgleize to approve and authorize the City Manager to execute the "Employment Agreement Between the City of Huntington Beach and Gilbert Garcia" for the position of Chief Financial Officer. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 13. Approved expansion of Central Park West Organic Chemical Pilot Study to include Organic Turf Management Practices City Manager Wilson introduced Public Works Maintenance Operations Manager Denny Bacon who presented a PowerPoint communication entitled Central Park West Organic Chemical Pilot Study & Organic Turf Management with slides titled: Landscape Maintenance Responsibilities, Background, Pilot Study - Timeline, Options Presented to City Council, Best Practices in Turn Management, Organic Turf Management, Turf Management Basics (2), Recommendations, and Questions. Councilmember Hardy and Manager Bacon discussed that it will take 9 to 12 months for an accurate evaluation with proposed costs and expansion plans. Manager Bacon explained that current costs are based on managing 40 acres, and per-acre-costs are expected to be reduced when the program expands to 250 acres. Councilmember Delgleize and Manager Bacon discussed the Turf Management Basics information and the impact of the new irrigation technology being installed in the Capital Improvement projects. Councilmember O'Connell and Manager Bacon discussed that Roundup is currently being used on a very limited basis, and there has been a reduction of 32 gallons in the last 10 months. It is anticipated that if the organic turf management plan works as well here as it did for Irvine Unified School District in choking out the broadleaf and weeds, Roundup will then only be used for alleys and sidewalks. Mayor Posey thanked Manager Bacon for the staff efforts on this project, and asked that Manager Bacon plan to provide an update on this project every quarter. A motion was made by O’Connell, second Delgleize to approve expansion of Central Park West Organic Chemical Pilot Study to include the entire west side of Central Park and adopt Irvine Unified School District's Organic Turf Management Practices. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None HB -71-Item 6. - 17 Council/PFA Regular Minutes April 2, 2018 Page 18 of 20 COUNCILMEMBER ITEMS *14. Continued to April 16 Item Submitted by Councilmember Semeta – Art in Public Places Master Plan **15. Approved Item Submitted by Mayor Pro Tem Peterson and Mayor Posey — Challenge to SB 54 Mayor Pro Tem Peterson stated his reasons for co-authoring this item, and expressed the opinion that an ordinance to opt out could open up the door for legal challenge, and the proposed authorization is based on Constitutional grounds. Mayor Posey shared that his goal as Mayor has been to regain and retain local control, and all Councilmembers took an oath to uphold the U. S. Constitution first and foremost, and this action is an effort to preserve the right and ability of Huntington Beach to continue to exercise local control. Attorney Gates reviewed his research on the best way for the City to challenge the constitutionality of SB 54, and explained that the City suit will claim that, as SB 54 is drafted, it overreaches in that it mandates how a local municipality can spend its money on policing. He further defined the Federal suit as based on the claim that the State is obstructing federal efforts to enforce immigration. As a charter city, Huntington Beach has constitutional protections to prevent Sacramento from overreaching. Councilmember Hardy and Police Chief Handy discussed SB 54 restrictions on local police officer actions, on attending some workshops and other consequences for the Huntington Beach Police Department. Police Chief Handy confirmed that the Federal government, not local officers, will continue to be responsible for immigration enforcement. Councilmember Hardy stated her support for maintaining local control, but she is concerned about the perception people have on this proposed action and believes approval will be a detriment to the City's reputation. Councilmember Delgleize expressed her dismay regarding the division, disrespect and anger this topic created, and stated that her goal as a Councilmember is to bring solutions to make Huntington Beach better. Mayor Pro Tem Peterson further added that the State is taking public safety tools away from municipalities and in his opinion the City should stand against any form of State overreach. Councilmember Semeta stated her decision on this item is not influenced by the inflammatory rhetoric that was displayed, but on her conviction that constitutional overreach is wrong. She further stated her belief that approval of this item will not in any way change or impact how the Police Department operates. Mayor Posey provided some details on his experiences of interacting with and observing majority politicians in Sacramento who appear to be intent on removing more and more local controls. Mayor Posey expressed that these efforts are not right, and as a charter city, Huntington Beach has some unique responsibilities and if we don’t fight for local control, Sacramento will take it away. Councilmember Brenden stated that our constitution guarantees everyone the right to speak their minds, and he believes that SB 54 is an overreach and supports an effort to make a difference in a really flawed State policy. He further expressed his belief that approval of this item will not change the dignity with which the Huntington Beach Police Department operates. HB -72-Item 6. - 18 Council/PFA Regular Minutes April 2, 2018 Page 19 of 20 Councilmember O'Connell and Police Chief Handy discussed that approval of this item will not change the relationships already developed within the community. Huntington Beach police officers are well trained and will continue to use their discretion because they understand the community’s public safety needs. Councilmember O'Connell stated his belief in local control and support for this item. Councilmembers expressed appreciation to the public speakers for making the time to voice their opinions. A motion was made by Peterson, second O’Connell to authorize the City Attorney to prepare and file a lawsuit against the State and Attorney General challenging the legality of SB 54 on Constitutional grounds to preserve our right and ability in Huntington Beach to continue to exercise local control. Additionally, allow the City Attorney to work with the County or other municipalities that wish to join our efforts. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, and Brenden NOES: Hardy COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Brenden reported attending an Eagle Court of Honor for Kenny Atlas, Brian Cao, Zachary Schulz, with Congressman Rohrabacher and Fountain Valley Mayor Vo, as well as being the best dressed in the dunk tank for the recent Family Fun Day, and thanked Joe Randall for chairing this successful Kiwanis sponsored event. Councilmember Brenden also announced details for the HB Adult Spelling Bee, April 21 at the Senior Center, which is being organized by the Kiwanis; the Huntington Harbour Yacht Club Opening Day, 53rd Anniversary on April 8th; Bolsa Chica Conservancy Earth Day Celebration, and Goldenwest College Annual Gala on April 14th. Councilmember Hardy thanked Mayor Pro Tem Peterson and Councilmember Semeta for assisting with Youth in Government Day, Boeing for being a major sponsor, Constance Towers (from Congressman Rohrabacher's office) and Jessie Benross (from Assemblymember Quirk-Silva's office) who spoke at lunch time, and the Youth Board as well as Chris Cole. Councilmember Hardy also reported enjoying this year's HB Reads selection and author's lecture. Councilmember Delgleize reported attending the Orange County United Way 3rd Annual Score Card event, and announced that United Way is working with the University of California Irvine (UCI) and the Association of California Cities (ACC) to build local workforce and homeless housing. Mayor Pro Tem Peterson reported enjoying the Youth in Government event and installed the new Officers for the Sand Dollars, the organization that manages the Miss Huntington Beach competition. He also reported hosting a recent Business Roundtable meeting for local aerospace industry businesses who incidentally have fabrication positions to fill with Councilmember Semeta and staff. Councilmember Semeta reported enjoying the Business Roundtable and learning about the well-paying jobs available in the industry, thanked Councilmember Hardy for allowing her to participate in the Youth in Government Day, reported representing the City at the "Every 15 Minutes" program which creates an increased awareness about the dangers of impaired driving for high school juniors and seniors, and thanked Richard Wright and his organization, Promoting Resources in Drug Education, for organizing the HB -73-Item 6. - 19 Council/PFA Regular Minutes April 2, 2018 Page 20 of 20 event, and thanked the Huntington Beach Fire and Police staff for their involvement with and support of this important event. Councilmember O'Connell reported speaking at a recent Orange County Board of Supervisors meeting to let them know that creating a homeless encampment on contaminated land was not a good idea, attended the Family Fun Day sponsored by Kiwanis, and presented a proclamation at the 50 Year Anniversary celebration for Huntington Hospital. Mayor Posey reported at also being at the Orange County Board of Supervisors meeting on homelessness where he shared the PowerPoint communication recently created by the Huntington Beach Homeless Task Force which describes ways that Huntington Beach is actively addressing the issues and thanked Police Chief Handy for his leadership on this issue. Mayor Posey was also a participant in the Family Fun Day dunk tank, and participated with presenting the keys to the winners of the recent Auto Dealers fundraiser at Huntington Beach Chrysler Jeep. ADJOURNMENT — 11:48 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, April 16, 2018, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. ______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair HB -74-Item 6. - 20 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, April 16, 2018 4:30 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:30 PM and 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ Based on the limited amount of time needed to cover items in Study Session and Closed Session, the meeting was called to order at 4:30 PM. 4:30 PM - COUNCIL CHAMBERS CALL TO ORDER — 4:29 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Delgleize, Hardy, and Brenden Absent: Posey City Attorney Michael Gates requested, and was granted, permission to be absent pursuant to City Charter Section 309 (d) ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet: Study Session: Item No. 1 - PowerPoint communication entitled Fiscal Year 2018-19 Proposed Budget, The Challenge of Change. PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) — None. STUDY SESSION 1. Chief Financial Officer Chuck Adams provided a PowerPoint communication for the Fiscal Year 2018/19 Proposed Budget Mayor Pro Tem Peterson introduced City Manager Wilson who recapped the budget process and the change in the budget cycle. He then turned the meeting over to the Chief Financial Officer, Chuck HB -75-Item 6. - 21 Council/PFA Regular Minutes April 16, 2018 Page 2 of 15 Adams who presented a PowerPoint communication entitled Fiscal Year 2018/19 Proposed Budget, The Challenge of Change, with the following slides titled: FY 2018/19 Proposed Budget Overview, "The Challenge of Change", FY 2018/19 Proposed Budget, FY 2018/19 General Fund Highlights, FY 2018/19 General Fund Overview, FY 2018/19 General Fund Revenue, General Fund Revenue Highlights, Public Safety (2), Public Safety - Police, Public Safety - Fire, Quality of Life, Quality of Life, All Funds, FY 2018/19 Long Term Financial Sustainability, Economic and Financial Sustainability, Master Fee and Charges Schedule, General Fund Balance, FY 2018/19 Police Unfunded Requests, Pension Costs and Unfunded Liabilities, Unfunded Liabilities Overview, CalPERS Discount Rate Change, Rising Pension Costs and What We Are Doing About It, Being Proactive Pays Off, Budget Balancing Options, Infrastructure and CIP, Capital Improvement Program, Infrastructure, FY 2018/19 Proposed Budget Recap, FY 2018/19 Proposed Budget Calendar, Cash Flow Projections, Development Process, Cash Flow Projections: All Funds Receipts & Disbursements, Liquidity Projections Bank & LAIF at month end, and FY 2018/19 Proposed Budget. Finance Manager Carol Molina presented the Pensions Cost portion of the PowerPoint communication and highlighted upcoming budget meetings. Ms. Molina then turned the final portion of PowerPoint communication over to City Treasurer Alisa Cutchen who presented the Cash Flow Projections portion. Mayor Pro Tem Peterson and staff discussed details regarding the Infrastructure calculations. Councilmember Brenden confirmed with Finance Manager Molina that part of the $8 million comes from State SB1 funding for road maintenance. Finance Manager Molina stated her strong confidence in the budget projections and Chief Financial Officer Chuck Adams confirmed that this is a fairly conservative budget. Community Services Manager David Dominquez and Councilmember Brenden discussed the park improvements budget items. City Manager Wilson confirmed that workers’ compensation expenses climb every year mostly because of increasing medical costs, and that there is a need to develop a long-term funding strategy for this expense. Councilmember Brenden and City Manager Wilson also discussed in more detail the unfunded request to hire five (5) police officers and other funds that might possibly be available. City Manager Wilson stated that the next meeting will focus on revenue enhancements and this topic would be appropriate for that discussion. RECESSED TO CLOSED SESSION — 5:10 PM A motion was made by Delgleize, second O'Connell to recess into Closed Session for Items 2 – 4. With no objections, the motion carried. Mayor Pro Tem Peterson 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: Management Employees' Organization (MEO), and Surf City Lifeguard Employees' Association (SCLEA). HB -76-Item 6. - 22 Council/PFA Regular Minutes April 16, 2018 Page 3 of 15 CLOSED SESSION 2. Pursuant to Government Code §54956.9(d)(2) the City Council recessed into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, two (2). 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: Angela Hernandez v. City of Huntington Beach, et al., U.S. District Court Case No: 8:17-cv-01257 AG (KESx). 4. 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: Management Employees’ Organization (MEO), and Surf City Lifeguard Employees’ Association (SCLEA). 6:00 PM – COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:02 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey (arrived 6:20 pm), Delgleize, Hardy, and Brenden Absent: None City Attorney Michael Gates requested, and was granted, permission to be absent pursuant to City Charter Section 309 (d) PLEDGE OF ALLEGIANCE — Led by Councilmember Semeta INVOCATION — Marsha Rechsteiner of Sts. Simon & Jude Catholic Church and member of the Greater Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS Mayor Pro Tem Peterson called on HB Fire Division Chief David McBride who presented the Mayor’s Award to Fire Protection Analyst, Steve Eros. Analyst Eros has been with the Huntington Beach Fire Department as a Fire Protection Analyst since September 2014 after seven years as a Fire Safety Specialist for UC Irvine. Steve’s job requires him to review a wide range of residential, commercial, and industrial plans and specifications for compliance with fire codes, standards, and city ordinances. He has extensive technical knowledge and many credentials from professional organizations. Steve received this honor for who he is at his core: a genuinely professional, hard- working, friendly, outgoing, universally-respected, and positive attitude guy. He works hard to establish HB -77-Item 6. - 23 Council/PFA Regular Minutes April 16, 2018 Page 4 of 15 great relationships with design and development professionals. He is always open for conversation and consultations. Steve remains flexible, yet firm where he needs to be. Steve thanked his colleagues and family for their support, and expressed appreciation for the recognition. Mayor Pro Tem Peterson presented a proclamation to the members of the Greater Huntington Beach Interfaith Council (GHBIC) who have organized numerous community service projects for Saturday, April 21, as Huntington Beach Community Service Day. Jynene Johnson, member of the GHBIC, presented a brief PowerPoint communication as an overview of the purpose and opportunities for various projects on Saturday, April 21. Mayor Pro Tem Peterson called on Council Member Semeta who presented the National Autism Month proclamation to Senior Coordinator, Field Development Jacqueline Roman of Autism Speaks. Ms. Roman provided a brief description of the services that Autism Speaks provides in order to increase global understanding and awareness, and thanked the City Council for the proclamation. Per Resolution 2016-01 Section C, Mayor Posey called on City Clerk Robin Estanislau and Miss Huntington Beach Alyssa Welfringer who presided over the lottery drawing for fireworks stands by selecting five qualified non-profit organizations from applications submitted in each of the following categories: Youth Sports and Civic Organizations. City Clerk Robin Estanislau presented a PowerPoint communication entitled 2018 Non-Profit Firework Stand Lottery, with the following entitled slides: Miss Huntington Beach 2018, 2018 Public High School Winners (4), 2018 Private High Schools = 2, 2018 Civic Organizations, 2018 Civic Organizations = 18, 2018 Youth Sports, 2018 Youth Sports = 16, and 2018 Congratulations! The successful applicants were: Edison High School Winners: MUN Booster Club EHS Foundation Huntington Beach High School Winners: Youth Field Hockey Girls Volleyball Marina High School Winners: Girls Field Hockey Band Booster Club Ocean View High School Winners: Band Boy’s Water Polo Private High School Lottery Winner: Liberty Christian High School HB -78-Item 6. - 24 Council/PFA Regular Minutes April 16, 2018 Page 5 of 15 Civic Organizations Winners: Knights of Columbus, Pope John Paul I Council 6020 Huntington Beach Reads One Book (HB Reads) Orange Coast Gakuen, Inc. Huntington Beach Host Lions Foundation Friends of the Huntington Beach City Junior Guards Alternates: Huntington Beach Elks Lodge No. 1959 Huntington Beach Family YMCA Adventure Guides Care Connections Network Youth Sports Winners: Ocean View Little League Huntington Beach Water Polo Club Golden West Swim Club Huntington Beach Girls Softball, Inc. Huntington Beach Youth Lacrosse Alternates: Huntington Valley Little League H. B. Divers United Water Polo Club 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: Councilmember Items: Item No. 9 - 12 communications received from individuals supporting the Art in Public Places Master Plan: Elise Masseling Nicole Thompson Lillian Sasaki Dee & Kurt Wood Valeria Greeley Pete Truxaw Janet French JoAnn Rossi Elise Masseling Mario A. Rossi Robyn Stauffer Eileen McCullough PUBLIC COMMENTS (3 Minute Time Limit) — 42 Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. Mary Margaret Chick, a student in the Huntington Beach Therapeutic Riding Center program, was called to speak and invited everyone to the May 5 Annual Fundraiser from 1 - 6 p.m. (01:15:34) Rabbi Stephen Einstein, one of the founders of the Huntington Beach Interfaith Council, was called to speak and stated his opposition to the Council's appointment of an individual which he believes is anti- Semitic, Islamophobic, and racist, and asked the Council to re-evaluate this appointment. (01:17:00) HB -79-Item 6. - 25 Council/PFA Regular Minutes April 16, 2018 Page 6 of 15 Barbara Simone was called to speak and stated her support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:19:15) Carrol Wolf was called to speak and stated her support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:22:18) Janet Johnson was called to speak and stated her support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:24:28) Justin Samson, resident of Fountain Valley and 2018 State Legislature Candidate, was called to speak and stated his opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (01:26:42) Kelly Miller, Current CEO of Visit Huntington Beach, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:29:33) Susan Thomas, Chief Marketing Officer, Visit Huntington Beach, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:32:47) Connie Beiz, member of the Air Traffic Noise Working Group, was called to speak and thanked the Council for supporting this group and the efforts to make changes. (01:35:49) Michael Bourgeault, Huntington Beach resident for 50 years and member of the Air Traffic Noise Working Group, was called to speak and thanked the Council for supporting this group and the efforts to make changes. (01:36:36) Phil Burtis, a 42-year resident of Huntington Beach and member of the Air Traffic Noise Working Group, was called to speak and thanked the Council for supporting this group and the efforts to make changes. (01:39:56) Sue Welfringer was called to speak and invited everyone to the 18th Annual Taste of Huntington Beach, to be held on Sunday, April 29 at the Sports Complex, in support of the Friends of the Children's Libraries. (01:43:46) Jason Bozarth, Local California Schools Employee Association (CSEA) Chapter President for Ocean View School District, was called to speak and stated his opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re- evaluate this appointment. (01:44:33) Ralph Bauer, long-time resident of Huntington Beach, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:46:48) Michael Feinstein, Former Mayor and City Council Member from Santa Monica, Co-Founder of the Green Party of California and 2018 Candidate for Secretary of State, was called to speak and stated his support for a unicameral 500-seat state legislature which, in his opinion, could empower Huntington Beach residents. (01:49:08) HB -80-Item 6. - 26 Council/PFA Regular Minutes April 16, 2018 Page 7 of 15 Bill Anderson, art teacher for 38 years, owner of a local art gallery, and Former President of the Allied Art Board, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:52:19) Rachel Potucek, resident of Orange County and small business owner and entrepreneur, was called to speak and stated opposition to the Council's appointment of an individual which she believes is anti- Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (01:55:26) Betty Viers was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (01:58:37) Kathy Martens was called to speak and stated opposition to the Council's appointment of an individual which she believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:00:23) Amory Hanson, 2018 Candidate for Huntington Beach City Council, was called to speak and stated that he supports the study, and believes the City should try to create a supplement, rather than an alternative, to HBTV as proposed in Councilmember Item No. 10 regarding analysis of alternative Public, Education and Governmental (PEG) Access/Outreach methods. (02:03:13) Adam Wood, Building Industry Association (BIA) Orange County, was called to speak and stated the BIA's opposition to the mandatory art fee stipulation included in Councilmember Item No. 9, Art in Public Places Master Plan. (02:05:34) Holly Guirguis was called to speak and stated her support for the efforts of the Air Traffic Noise Working Group and listed examples of some of the issues that she believes are negatively impacting quality of life for area residents. (02:08:45) Mary Lund was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (02:12:00) Kathryn Levassiur, a 19-year resident of Huntington Beach and Founding Member of the Huntington Beach Short-Term Rental Alliance, was called to speak and stated her interest in having the Council address the topic of Short-Term Vacation Rentals as soon as possible, and encouraged the Council to look at increasing revenue streams through means other than sales tax. (02:14:43) Celeste Hamil, Member of the Allied Arts Board, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (02:16:47) Hector Valdez was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (02:19:42) Steve Harris, Buena Park, La Habra and Anaheim Centralia School Board Trustee, was called to speak and stated opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:20:33) John Briscoe was called to speak and read from a letter received from the Anti-Defamation League to the Ocean View School Board to support his opposition to the Council's appointment of an individual which HB -81-Item 6. - 27 Council/PFA Regular Minutes April 16, 2018 Page 8 of 15 he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:23:32) Peter Levi, Regional Director, Anti-Defamation League of Orange County, was called to speak and stated opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:26:41) Gina Clayton-Tarvin, long-time Huntington Beach homeowner and Ocean View School District Board of Trustees Member, was called to speak and stated opposition to the Council's appointment of an individual which she believes is anti-Semitic, Islamophobic and racist, and asked the Council to re- evaluate this appointment. (02:29:50) Libby Froleichman, member of HB Huddle, was called to speak and stated opposition to the Council's appointment of an individual which she believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:32:59) Shayna Lathus, a 20-year resident of Huntington Beach, a teacher, and 2018 Candidate for Huntington Beach City Council, was called to speak and re-addressed a topic from the Council meeting of April 2, 2018, specifically her opposition to Councilmember Item No. 15, Challenge to SB 54. (02:34:27) Joel Vissia was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (02:37:32) Kim Sorgente, Huntington Beach homeowner, was called to speak and voiced his support for the individual that many are calling anti-Semitic and racist. (02:38:10) Lenore Albert-Sheridan, 2018 Candidate for Orange County District Attorney, was called to speak and stated her qualifications for this position. (02:41:29) Omar Siddiqui, trial attorney, engineer, FBI Advisor for National Security and 2018 Candidate for California Congressional 48th District, was called to speak and stated opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:44:43) Paula Lazioki, Allied Arts Board member, was called to speak and stated support for Councilmember Item No. 9, Art in Public Places Master Plan. (02:47:17) Jeff Morin, Director of External Affairs, AT&T, was called to speak and stated his support for Consent Calendar Item No. 4, execution of a Small Cell License Agreement between the City of Huntington Beach and New Cingular Wireless PCS, LLC. (02:50:33) John Earl, Huntington Beach resident, was called to speak and stated opposition to the Council's appointment of an individual which he believes is anti-Semitic, Islamophobic and racist, and asked the Council to re-evaluate this appointment. (02:51:41) Bethany Webb was called to speak and re-addressed a topic from the Council meeting of April 2, 2018, specifically her opposition to Councilmember Item No. 15, Challenge to SB 54. (02:53:52) HB -82-Item 6. - 28 Council/PFA Regular Minutes April 16, 2018 Page 9 of 15 Barbara Haynes, Co-Founder of the Huntington Beach Public Art Alliance, was called to speak and addressed specific questions to Councilmember Semeta for clarification regarding Councilmember Item No. 9, Art in Public Places Master Plan. (02:56:55) Kim Kramer, Huntington Beach resident and Co-Founder of the Huntington Beach Public Art Alliance, was called to speak and stated his opposition to Councilmember Item No. 9, Art in Public Places Master Plan. (02:59:59) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Brenden reported meeting with an aviation attorney on behalf of the Air Traffic Noise Working Group, attending the 5th meeting of the Air Traffic Noise Working Group which has produced a website with resources at StopTheJetNoise.com, and attending the Downtown Business Improvement District Board meeting. Councilmember Delgleize reported attending the 5th meeting of the Air Traffic Noise Working Group, and a panel discussion meeting offered by the Association of California Cities - Orange County (ACC-OC). Councilmember O'Connell reported attending the Air Traffic Noise Working Group, and the Association of California Cities - Orange County (ACC-OC) meetings. Mayor Posey reported attending an Orange County Vector Control Finance Committee meeting where he was voted in as Chair, that he was appointed to the Orange County Parks Commission and supports opening the paved bike trails to e-bikes which have speeds of up to 25 MPH, that he sent a letter to Representative Dana Rohrabacher's office and the Federal Aviation Administration (FAA) regarding the local jet noise and received a good response, and he literally just returned from a meeting in Sacramento with Senator Janet Nguyen. CITY MANAGER’S REPORT City Manager Fred Wilson announced a new professional Surf City Escape Triathlon event scheduled for Sunday, April 22, 6:30AM — 1PM, with participants coming from around the world. CONSENT CALENDAR Mayor Pro Tem Peterson pulled Item No. 6 to allow time for Councilmember Delgleize to return to the dais. Councilmember O'Connell announced for the record that he is abstaining from voting on Item No. 5. 1. Adopted Resolution No. 2018-22 identifying the FY 2018-19 projects to be funded by SB 1, the Road Repair and Accountability Act A motion was made by Peterson, second Semeta to adopt Resolution No. 2018-22, "A Resolution of the City Council of the City of Huntington Beach to Identify the FY 2018-19 List of Projects Funded by SB 1; The Road Repair and Accountability Act." The motion carried by the following vote: HB -83-Item 6. - 29 Council/PFA Regular Minutes April 16, 2018 Page 10 of 15 AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 2. Approved Cal OES Violence Against Women Act Grant (LE14076860) for the 2018 calendar year which includes accepting the grant between the State of California, Governor’s Office of Emergency Services (Cal OES) and the City; approved the appropriation and expenditure of $270,857, of which $203,143 is to be fully reimbursed by the grant from Cal OES; and, amended the Professional Services Listing to include provided domestic violence services A motion was made by Peterson, second Semeta to accept the grant between the State of California Governor's Office of Emergency Services (Cal OES) and the City of Huntington Beach; and, approve the appropriation and expenditure of $270,857 of which $203,143 is to be fully reimbursed by the grant from Cal OES. The remaining $67,714 will be funded from appropriations in the Police Department's budget; and, amend the Professional Services Listing to include provided domestic violence services. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 3. Approved and authorized execution of a 10-year Lease and Management Agreement between the City of Huntington Beach and Waymakers for the operation of the Huntington Beach Youth Shelter located at 7291 Talbert Avenue A motion was made by Peterson, second Semeta to approve and authorize the Mayor and City Manager to execute the "Lease and Management Agreement Between The City of Huntington Beach and Waymakers for the Operation of the Huntington Youth Shelter Located at 7291 Talbert Avenue." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 4. Approved and authorized execution of a Small Cell License Agreement between the City of Huntington Beach and New Cingular Wireless PCS, LLC, doing business as AT&T Mobility for Installation of Small Cell Attachments on City-owned streetlights A motion was made by Peterson, second Semeta to approve the "Small Cell License Agreement" between the City of Huntington Beach and New Cingular Wireless PCS, LLC, doing business as AT&T Mobility; and, authorize the City Manager and City Clerk to execute the "Small Cell License Agreement." The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None HB -84-Item 6. - 30 Council/PFA Regular Minutes April 16, 2018 Page 11 of 15 5. Approved and authorized execution of a Memorandum of Understanding (MOU) between the City of Huntington Beach and Huntington Beach Police and Community Foundation (HBPCF) A motion was made by Peterson, second Posey to approve and authorize the City Manager to execute the five-year "Memorandum of Understanding" between the City of Huntington Beach and Huntington Beach Police and Community Foundation (HBPCF). The motion carried by the following vote: AYES: Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None ABSTAIN: O’Connell 6. Adopted Ordinance No. 4157 amending Section 14.12.040 of Chapter 14.12 of the Huntington Beach Municipal Code (HBMC) regarding water meter rates and commodity rates, and adopted Ordinance No. 4158 amending Section 14.54.040 and 14.54.060, deleting sections 14.54.110 and 14.54.120 and Chapter 14.55 of the Huntington Beach Municipal Code (HBMC) regarding sewer service user charges Approved for introduction April 2, 2018 – Vote: 5-2 (O’Connell, Peterson - No) A motion was made by Delgleize, second Posey to adopt Ordinance 4157, "An Ordinance of the City of Huntington Beach Amending Section 14.12.040 of Chapter 14.12 of the Huntington Beach Municipal Code Regarding Water Meter Rates and Water Commodity Rates Pursuant to California Health & Safety Code Section 5470, ET SEQ;" and, adopt Ordinance 4158, "An Ordinance of the City of Huntington Beach Revising the Huntington Beach Municipal Code Regarding Sewer Service User Charges, by Amending Sections 14.54.040 and 14.54.060, Deleting Sections 14.54.110 and 14.54.120, and Deleting Chapter 14.55." FIVE AFFIRMATIVE VOTES ARE REQUIRED TO ADOPT THE ORDINANCES PER HEALTH AND SAFETY CODE SECTION 5471 The motion carried by the following vote: AYES: Semeta, Posey, Delgleize, Hardy, and Brenden NOES: O’Connell, and Peterson PUBLIC HEARING 7. Adopted and authorized recordation of Resolution Nos. 2018-09, 2018-12 and 2018-14 ordering the Vacation of certain easements on the Dubar property located south of Ellis Avenue, between Edwards and Goldenwest Streets City Manager Wilson introduced Senior Civil Engineer Steve Bogart who presented a PowerPoint communication entitled Vacation of Easements: Located South of Ellis Avenue, between Edwards and Goldenwest Streets, with titled slides: Background, Easements To Be Dedicated To The City, Existing Easements Currently Held By The City To Be Vacated, and Staff Recommendation. Mayor Posey opened the Public Hearing. HB -85-Item 6. - 31 Council/PFA Regular Minutes April 16, 2018 Page 12 of 15 City Clerk Robin Estanislau announced that there was one Supplemental Communication received, a PowerPoint communication entitled Vacation of Easements: Located South of Ellis Avenue, between Edwards and Goldenwest Streets. Public Speakers — None There being no speakers, Mayor Posey closed the Public Hearing. A motion was made by Peterson, second O’Connell to adopt Resolution No. 2018-09, "A Resolution of the City Council of the City of Huntington Beach Ordering the Vacation of that Certain Public Use Easement Over The Entire Width of Lots A, B and C of The Fairview Addition to Huntington Beach;" and, adopt Resolution No. 2018-12, "A Resolution of the City Council of the City of Huntington Beach Ordering the Vacation of that Certain 8-Foot Wide Equestrian Trail Easement Over Portions of Lots A, B and C of The Fairview Addition to Huntington Beach;" and, adopt Resolution No. 2018-14, "A Resolution of the City Council of the City of Huntington Beach Ordering the Vacation of that Certain 15 -Foot Wide Sewer Easement Over A Portion of Lot C of The Fairview Addition to Huntington Beach;" and, Instruct the City Clerk to record Resolution No. 2018-09, Resolution No. 2018-12, and Resolution No. 2018-14 and their attached exhibits with the Orange County Recorder. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None ADMINISTRATIVE PUBLIC HEARING 8. Conduct Administrative Public Hearing for Annual Weed Abatement Program and authorize the Director of Public Works to proceed with abatement of public nuisance City Manager Wilson introduced Senior Administrative Analyst Debra Jubinsky who presented a PowerPoint communication entitled: Annual Weed, Rubbish, and Refuse Abatement Program with slides titled: Program Timeline (4). Mayor Posey and Analyst Jubinsky discussed the number of parcels, approximate projected cost of $15,000, and that many owners clear their own property. Mayor Posey opened the Public Hearing. Public Speakers — None There being no public speakers Mayor Posey closed the Public Hearing. A motion was made by Brenden, second Delgleize to open a public hearing for any objections and protests to the proposed removal of weeds, refuse and rubbish; and following the hearing, authorize the Superintendent of Streets (Director of Public Works) to proceed with the abatement of said nuisance. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None HB -86-Item 6. - 32 Council/PFA Regular Minutes April 16, 2018 Page 13 of 15 COUNCILMEMBER ITEMS 9. Continued from April 2, 2018 – Submitted by Councilmember Semeta – Art in Public Places Master Plan Councilmember Semeta shared a PowerPoint communication titled Art in Public Places: A Placemaking Strategy for Destination Cities with slides entitled: Public art serves many roles for a city (10), The Benefits of Public Art, Public Art as a Proven Economic Development Strategy, Why a Master Plan for Public Art? (2), A Master Plan Should:, Plenty of Local Master Plans as Examples (3), and Public Art Will Turn a Space into an Iconic Place. Mayor Pro Tem Peterson stated his support for this project which will include local artists for local projects. Councilmember Delgleize acknowledged both Ms. Haynes and Mr. Kramer specifically for improving the Downtown through public art. Councilmember Delgleize could not support a master plan which becomes constraining, but would support a framework of guidelines, and trusts that staff will suggest appropriate options. Councilmember Brenden stated his support for this effort and belief that public art helps to create positive memories and lasting impressions. His concerns relate to the lack of clarity on current processes, fees and plans, and he emphasized the inclusion of the existing Allied Arts Board throughout the process of developing a master plan. Councilmember Brenden stated his support for a master plan that would stimulate the proliferation of public art while minimizing government interference of artistic expression. Councilmember Hardy expressed a desire to see more details on current public art processes, and wants to ensure that any master plan does not create obstacles but makes it easier to create public art. Councilmember Semeta stated that part of the process for developing a master plan is to review current processes and plans to evaluate if they should be incorporated, or if adjustments are recommended. Director of Community Services Marie Knight stated that the process of creating a Public Arts Master Plan would include members of the Allied Arts Board, and staff plans to provide general options which can be fine-tuned and modified, including possible additions to the Design Review Board (DRB). Councilmember Semeta further stated that her vision is not for the City to be funding any public art, but rather encouraging opportunities for private funding. Mayor Posey reviewed goals from the Allied Arts Board as documented in The Cultural Plan Update dated February 17, 2015, to show the positive impact that the Allied Arts Board has produced, and planned, for public art. Further, he would like to see an incentive-based art and private development element in the master plan to encourage public art on private property. Mayor Pro Tem Peterson stated his understanding that this item is to get the ball rolling and to ask staff to return with answers to the questions raised this evening so that the next steps can be taken based on existing processes. An amended motion was made by Semeta, second Peterson to prepare a proposal, and involve the members of the Allied Arts Board, for the creation of a comprehensive public art program. The program should acknowledge the Community Development Department's existing program and expand it HB -87-Item 6. - 33 Council/PFA Regular Minutes April 16, 2018 Page 14 of 15 to consider other public art opportunities; and, research best practices for funding options for a comprehensive public art program and present options for consideration; and, review and make recommendations regarding the composition and mission of existing Boards and Commissions, including the Allied Arts Board, and their potential role in the future with respect to a new comprehensive art program or related to our current program and process. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 10. Item Submitted by Councilmembers Brenden and Semeta – Analysis of Alternative Public, Education and Governmental (PEG) Access/Outreach Methods Councilmember Semeta reported that she and Councilmember Brenden are the City of Huntington Beach Board Members on the Joint Powers Public Cable Television Authority (PCTA), which includes Board members from Fountain Valley, Stanton, and Westminster, the only consortium in Southern California for local government programming. Councilmembers Semeta and Brenden are asking for a review of best practices in order to ensure that the City is utilizing current technology most efficiently and effectively. Councilmember Brenden described some of the specifics that need to be addressed, including an assessment of current resources and technology for broadcasting public interest programs, to ensure that residents are getting the best return for their money which they pay through their cable bill. A motion was made by Brenden, second Semeta to direct the City Manager to obtain information from PCTA and other programming providers to assess the current resources available to the City for broadcast of public interest programming and conduct a review of best practices of local government programming in order to ensure that the City is utilizing current technology most efficiently and effectively. Return to City Council within ninety (90) days with a report. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None COUNCILMEMBER COMMENTS (Not Agendized) Councilmember O'Connell reported attending the Huntington Beach Fire Department Annual Awards Ceremony, the Golden West College Foundation Board of Directors 20th Annual Golden West College Gala, the Los Angeles Run to Remember in memory of police, fire and safety personnel who have fallen in the line of duty, a Camp Pendleton event in support of the Marines, and the Kiwanis Board of Directors meeting. He also reported attending a VA Hospital event for the veterans and gave a shout-out for Mike Ali who provided meals for this event. Councilmember Semeta reported attending the Grand Opening of the new Regional Criminal Justice Training Center at Golden West College, a 4th of July Board meeting as Council Liaison, and thanked everyone who wore blue in acknowledgement of Autism Awareness month. HB -88-Item 6. - 34 Council/PFA Regular Minutes April 16, 2018 Page 15 of 15 Councilmember Delgleize expressed gratitude to Aaron and Sher Pai who led the memorial paddle out for Pastor Blaine "Sumo" Sato, and to Mike Ali for being such a generous person. She also thanked the Orange County Register for their recent series on sober living home issues. Councilmember Hardy reported attending the ribbon cutting for the All-Inclusive Beach Playground and was delighted to see the children immediately enjoy using the equipment. Councilmember Brenden reported attending the Curt Pringle & Associates 4th Annual Open House and Boutique, Coffee with the Mayor event, ribbon cutting for the All-Inclusive Beach Playground, Grand Opening for the new Regional Criminal Justice Training Center at Golden West College, meeting with Tom Harmon, Senator John Moorlach, and Councilmember Delgleize at the Urban Forest to discuss ways to see continued growth, and attending the Driver of the Year Luncheon at Rainbow/Republic Services to honor Toribio Gonzalez. Councilmember Brenden thanked the Huntington Beach Council on Aging for the recent Shred It event. He also reported attending the Beach Cities Interfaith Services (BCIS) fundraiser at St. Wilfrid's, and the Golden West College Foundation Board of Directors 20th Annual College Gala. Councilmember Brenden encouraged community members to get involved in the April 21 Community Service Day. He also commended Mike Ali for his generosity, and suggested that this meeting be adjourned in memory of Pastor Blaine "Sumo" Sato. Mayor Posey reported the honor of making the opening remarks for the HB Fire Department Annual Awards Ceremony, he also enjoyed introducing Toby Keith at the Country Jam, he hosted a Meet the Mayor for Coffee event, provided the opening remarks at the ribbon cutting for the All-Inclusive Beach Playground, attended the Driver of the Year Luncheon at Rainbow/Republic Services to honor Toribio Gonzalez as the best National Waste and Recycling Association driver in the nation, he also attended the Association of California Cities – Orange County (ACC-OC) business dinner and panel discussion, the Golden West College Foundation Board of Directors 20th Annual Golden West College Gala, and the memorial paddle out for Pastor Blaine "Sumo" Sato. ADJOURNMENT — 9:47 PM in memory of Pastor Blaine "Sumo" Sato, to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, May 7, 2018, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. _____________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair HB -89-Item 6. - 35 Dept. ID FD18 002 Page 1 of 1 Meeting Date: 5/7/2018 Statement of Issue: The State of California requires jurisdictions to update their list of authorized agents who will submit claims for state and federal reimbursement every three years. The existing resolution with this listing was last updated in 2015 and approval of a current resolution is requested. It will be effective through June 30, 2021. Financial Impact: Not applicable. Recommended Action: Adopt Resolution 2018-28, "A Resolution of the City Council of the City of Huntington Beach Authorizing Certain City Officials to Execute Grant Applications and Documents” to obtain disaster and emergency relief. Alternative Action(s): Do not approve the resolution and direct staff accordingly. Analysis: State law requires that all claims for state and federal disaster reimbursement be accompanied by a list of city officials authorized to act as agents for the purpose of applying for and obtaining financial assistance for disaster and emergency relief. The State of California requires jurisdictions to update their list every three years. The existing resolution with this listing was last updated in 2015 and now must be updated. The resolution, shown as Attachment 1, includes as authorized agents the positions of City Manager, Fire Chief, Chief Financial Officer, and Emergency Services Coordinator. The newly adopted resolution will accompany City claims for financial reimbursement from the California Emergency Management Agency (Cal-EMA) and the Federal Emergency Management Agency (FEMA). In conformance with State of California requirements, it will expire in three years on June 30, 2021. Environmental Status: None. Strategic Plan Goal: Enhance and maintain public safety Attachment(s): 1. Resolution No. 2018 -28, "A Resolution of the City Council of the City of Huntington Beach Authorizing Certain City Officials to Execute Grant Applications and Documents” CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: David A. Segura, Fire Chief SUBJECT: Adopt Resolution No. 2018-28 approving City Authorized Agents to apply for and obtain Financial Assistance for Disaster and Emergency Relief HB -90-Item 7. - 1 RESOLUTION NO. 2018-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING CERTAIN CITY OFFICIALS TO EXECUTE GRANT APPLICATIONS AND DOCUMENTS WHEREAS, the City Council of the City of Huntington Beach desires to designate and authorize certain classifications in the city service as the City's agents for purposes of applying for and obtaining Emergency Management and Department of Homeland Security Grants (hereinafter collectively referred to as "Eligible Grants"). NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: That the City Manager (or his or her designee), the Chief Financial Officer, the Fire Chief, or the Emergency Services Coordinator, is hereby authorized to execute for and on behalf of the City of Huntington Beach, a Charter City established under the laws of the State of California, any application and related documents to file for non-matching Eligible Grants and matching grants that do not require direct costs but are matched with in-kind administrative expenditures, such as administrative staff time and other budgeted expenditures. Such authority shall expire on June 30, 2021. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of ,2018. Mayor REVIEWED AND APPROVED: City Manager 18-6441/178563/DO HB -91-Item 7. - 2 Dept. ID PW 18-016 Page 1 of 2 Meeting Date: 5/7/2018 Statement of Issue: On March 27, 2018, bids were opened for the Residential Overlay of Maintenance Zone 1, CC- 1567. Council action is requested to award a construction contract to R.J. Noble Company, the lowest responsive and responsible bidder. Financial Impact: The total cost of the project is $1,950,000. Funds in the amount of $940,205 are budgeted in the Gas Tax Fund, Account No. 20790055.82300, $260,000 in the Infrastructure Fund, Account No. 31440001.82000, $100,000 in the Water Fund, Account No. 50685201.82100, and $80,000 in the Sewer Fund, Account No. 51185101.82000, for a total of $1,380,205. Additional appropriations are requested to meet the funding shortfall. Recommended Action: A) Accept the lowest responsive and responsible bid submitted by R.J. Noble Company in the amount of $1,772,634; and, B) Appropriate $20,000 from the Water Fund to business unit 50685201.82100; and, C) Appropriate $50,000 from the Sewer Fund to business unit 51185101.82600; and, D) Appropriate $500,000 from the Infrastructure Fund to business unit 31440001.82000; and, E) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): Reject all bids and direct staff on how to proceed. Analysis: The City is responsible for maintaining approximately 200 residential miles of streets and utilizes a Pavement Management Program (PMP) to calculate a pavement condition for each street. As part of the PMP, a residential network was created dividing the City into 12 maintenance zones to allow the City to better coordinate maintenance activities. This project will rehabilitate approximately 110 streets in Maintenance Zone 1 with pavement condition ratings below 55, which is considered very poor. Maintenance Zone 1 is located in the Southeast Area of City and includes streets east of CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, Director of Public Works SUBJECT: Award and authorize execution of a construction contract in the amount of $1,772,634 to R.J. Noble Company for the Residential Overlay of Maintenance Zone 1, CC-1567; and, authorize appropriation of funds HB -92-Item 8. - 1 Dept. ID PW 18-016 Page 2 of 2 Meeting Date: 5/7/2018 Magnolia Street to Brookhurst Street and South of Indianapolis Avenue to Pacific Coast Highway. The work will include grinding existing pavement, overlaying 1 ½” of new asphalt, adjusting utility covers to grade, and providing replacement traffic striping. On March 27, 2018, bids were publicly opened. The verified bid amounts are listed below: Bidding Contractor Bid as Submitted Verified Bid R.J. Noble Company $1,772,637.00 $1,772,637.00 All American Asphalt $1,953,500.00 $1,953,500.00 Excel Paving $2,283,043.00 $2,283,043.00 Staff recommends the award of a construction contract to R.J. Noble Company in the amount of $1,772,637. The total estimated project cost is $1,950,000 which includes the construction contract and 10% construction contingency. Public Works Commission Action: The Public Works Commission reviewed and approved the project was in substantial conformance with the CIP on February 21, 2018, with a vote of 7-0 Environmental Status: The project is categorically exempt pursuant to Section 15304 of California Environmental Quality Act. Strategic Plan Goal: Enhance and maintain infrastructure Attachment(s): 1. Location Map HB -93-Item 8. - 2 RD 456 RD 455 RD 466 RD 465 RD 476 RD 475 RD 485ZONE 1 RD 486 HB -94-Item 8. - 3 Dept. ID PD-18-002 Page 1 of 2 Meeting Date: 5/7/2018 Statement of Issue: Huntington Beach Municipal Code Chapter 5.66 provides the rules for all persons and businesses providing nonconsensual police-directed vehicle towing and storage service directed by the Huntington Beach Police Department in the City. The City has conducted a bid process to select vendors to provide police directed tow services and determined that Best Towing, LLC, and Mandic Motors, Inc., qualify to provide police-directed towing and storage in the City. Financial Impact: Funds are contained in the Police Department’s FY 2017/18 adopted budget for these expenses. Recommended Action: A) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Best Towing, LLC, for Police Directed Towing and Storage Services;" and, B) Approve and authorize execution by the Mayor and City Clerk of the "Agreement Between the City of Huntington Beach and Mandic Motors, Inc., for Police Directed Towing and Storage Services;" and, C) Adopt Resolution No. 2018-21, "A Resolution of the City Council of the City of Huntington Beach Revising the Fees for Towing Services and Garage Impounds” effective April 1, 2018. Alternative Action(s): Do not approve contracts and direct staff accordingly. Analysis: The Huntington Beach Police Department uses directed towing to remove parked vehicles based on a number of reasons, including arrest of the driver. The City of Huntington Beach previously had police directed towing contracts with Best Towing, LLC, and Mandic Motors, Inc., with terms of five years each which expired in August of 2017. On November 8, 2017, the City released a Request for Qualifications, soliciting proposals from qualified tow operators. The Police Department received a total of three proposals, two of which were from Mandic Motors and Best Towing. The third proposal was from a towing company outside CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Robert Handy, Chief of Police SUBJECT: Approve and authorize execution of agreements with Best Towing, LLC, and Mandic Motors, Inc., for Police Directed Services; and, adopt Resolution No. 2018-21 revising the fees for Towing Services and Garage Impounds HB -95-Item 9. - 1 Dept. ID PD-18-002 Page 2 of 2 Meeting Date: 5/7/2018 of the city boundaries (Southside Towing located in Costa Mesa) – which did not meet the minimum request for qualifications. All proposals were reviewed and evaluated by the HBPD Traffic Bureau and the Finance Department. Best Towing, LLC, and Mandic Motors, Inc., met the towing and storage requirements and were selected by the HBPD Traffic Bureau representatives and Finance Department. Both companies satisfy the insurance requirements and have current permits/ licenses as required by the state and/or City, including zoning, fire, and building. Code Enforcement Officers inspected the storage facilities and yards of Best Towing, LLC, (March 14, 2018) and Mandic Motors, Inc., (March 8, 2018). Code Enforcement found both facilities are being used appropriately and no zoning code violations were observed. In August of 2007, City Council adopted Resolution 2007-44, authorizing a one-time 10% increase of rates, fees, and charges for various police directed tow operations in the City. The rates, fees, and charges have since been adjusted according to the Consumer Price Index (CPI). The rates, fees, and charges that tow operators can impose must be set by Resolution of City Council. Once the rates, fees, and charges are set by Resolution, the Tow Operators cannot deviate from said rates, fees, and charges. As part of entering into this agreement, staff recommends adopting the fee schedule attached to this Staff Report. There will be no change in the fee schedule based on CPI for the first two-years of the contract (December 1, 2018, through November 30, 2020). The fee schedule will be adjusted on December 1, 2020, and continue each year based on any change in the metropolitan Consumer Price Index for the Los Angeles- Riverside-Orange County, CA, area during the preceding year. Environmental Status: N/A. Strategic Plan Goal: Enhance and maintain public safety Attachment(s): 1. Resolution No. 2018-21, "A Resolution of the City Council of the City of Huntington Beach Revising the Fees for Towing Services and Garage Impounds” effective April 1, 2018 2. "Agreement Between the City of Huntington Beach and Best Towing, LLC for Police Directed Towing and Storage Services" 3. "Agreement Between the City of Huntington Beach and Mandic Motors, Inc., for Police Directed Towing and Storage Services" 4. Mandic Motors Cert. of Ins. and Supporting Docs 5. Best Towing Cert. of Ins. and Supporting Docs HB -96-Item 9. - 2 RESOLUTION NO. 2018-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH REVISING THE FEES FOR TOWING SERVICES AND GARAGE IMPOUNDS WHEREAS, Huntington Beach Municipal Code Section 5.66.170 authorizes the City to set a maximum charge for police-directed towing services and garage impounds; and On August 20, 2001, the City Council adopted Resolution No. 2001-52 which established maximum fees for police-directed towing services and garage impounds; and On July 16, 2007, the City Council adopted Resolution No. 2007-44, which established revised maximum fees for police-directed towing services and garage impounds; and The City's Tow Operators have requested an increase in the maximum fees charged for towing services and garage impounds based on an increase in their operating costs, such as fuel prices, employee health care costs, vehicle salvage costs, and other related expenses; and The City Council wishes to revise the maximum charge for police-directed towing services and garage impounds based on the Tow Operators demonstration of an increase in their operating costs, NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach that effective April 1, 2018, the maximum charges for police-directed towing services and garage impounds are as set forth on Exhibit A which is attached hereto and incorporated by this reference. BE IT FURTHER RESOLVED that Resolutions 2001-52 and 2007-44, and all Supplemental Resolutions thereto, are hereby repealed. 18-63611176106/DKO 1 HB -97-Item 9. - 3 RESOLUTION NO, 2018-21 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2018. Mayor City Clerk REVIEWED AND APPROVED: City Manager INITIATED AND APPROVED: 14/41,-01- 14,6 Chief of PoliCe 18-6361/176106/DKO 2 HB -98-Item 9. - 4 EXHIBIT A HB -99-Item 9. - 5 City of Huntington Beach Tow Rate Schedule $ 175.00 $ 195.00 $ 300.00 $ 235.00 $ 70.00 $ 70.00 $ 60.00 $ 70.00 Basic Tow Service (Standard sling or wheel lift truck) Medium Duty or Flatbed Request Heavy Duty (3) Axle or larger Two Ton Dolly Rollover minimum Drop Linkage Clean-up fee (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket Winching per hour Vehicle Storage Vehicles Outside—per day Vehicles Inside—per day Motorcycles Outside—per day Motorcycles Inside—per day Truck or Motor homes (larger than 20') Vehicles stored as evidence—outside Vehicles stored as evidence-inside Motorcycles stored as evidence—outside Motorcycles stored as evidence—inside After hours release 5:00 p.m. – midnight Midnight – 8:00 a.m. Minimum Service Call or Drop Fee $ 140.00 $ 175.00 $ 60.00 $ 70.00 $ 35.00 $ 45.00 $ 65.00 $ 35.00 $ 45.00 $ 25.00 $ 30.00 $ 80.00 $ 110.00 $ 90.00 **The rate schedule will be effective April 1 st , 2018 through March 31 st , 2023. There will be no change in the fee schedule based on CPI for the first 2 years of this new contract (December 1 5t , 2018 through November 30 th , 2020). The fee schedule can be adjusted based on the CPI starting on December 1 st , 2020. HB -100-Item 9. - 6 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND BEST TOWING LLC., FOR POLICE DIRECTED TOWING AND STORAGE SERVICES This Police Directed Towing And Storage Agreement ("Agreement") is made and entered into this day of April 1, 2018, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation (hereinafter "City" ), and BEST TOWING LLC., a CALIFORNIA CORPORATION (hereinafter "Tow Operator"), located at 7472 Warner Ave., Huntington Beach, California 92647 RECITALS: WHEREAS, the City requires, from time to time, towing and storage services in connection with vehicles which have been determined to be a public nuisance pursuant to the Huntington Beach Municipal Code, or which are in violation of statutes and ordinances relating to parking, traffic, and law enforcement; and The Tow Operator represents that it has the managerial and operating personnel and the facilities and equipment necessary to provide the required vehicle towing and storage services to the City pursuant the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained, the parties agree as follows: I. SCOPE OF SERVICES. The Tow Operator agrees to furnish towing and storage services to the City as generally described in the Recitals (which are incorporated herein by this reference), and more particularly described in the Tow Operator's proposal dated November 10 th , 2017 and as further defined by this Agreement. Such services shall be performed in a prompt, 18-6280/173969/my 1 HB -101-Item 9. - 7 efficient, and orderly manner only after being notified by City's representative to commence towing of a vehicle. 2. DUTIES OF TOW OPERATOR. A. The Tow Operator shall: 1. Respond to the location requested by the City within twenty (20) minutes of receipt of a call from City. If the Tow Operator is not able to respond within the aforementioned response time, the Tow Operator shall notify the City immediately of the expected time of arrival (ETA). If the ETA is unacceptable to the City, the City reserves the right to contact an alternate towing operator to provide the service. 2. Provide for the deployment of tow vehicles when special events occur in the City, such as Fourth of July, US Open, street fairs and/or parades as well as DUI check points, as requested by the City. The Tow Operator shall have the capability to tow up to 100 vehicles in a five (5) hour period for special events or DUI check points. The Tow Operator may utilize pre-approved subcontractors to tow up to 100 vehicles in a five (5) hour period for said special events or DUI check points. Such additional towing services will be coordinated by the City with the Tow Operator in advance. The City, at its sole discretion, may utilize tow services of any company for special events or DUI check points. 3. Not perform any work or services upon any towed and impounded vehicle without first obtaining the owner's written consent or as necessary for emergency or for security purposes. Any parts or accessories removed or 18-6280/173969/n1v 2 HB -102-Item 9. - 8 modified shall be listed on the itemized statement and the statement shall be stored in the Tow Operator's Business Office. 4. Not solicit or agree to make repairs on a towed and impounded vehicle(s) until the vehicle(s) has been released by the Police Chief, or his designee. 5. Secure and safeguard all vehicles and personal property received by the Tow Operator pursuant to this Agreement. 6. Not bill the City in excess of the rates established by Resolution of the City Council. 3, TOW OPERATOR VEHICLE STORAGE FACILITY AND OFFICE REQUIREMENTS. A. The Tow Operator's vehicle storage facility (Storage Facility) shall hereby be designated as the a City "Official Police Garage" and a "Designated Public Garage" and: 1. Be maintained within the City and be accessible 24 hours a day, 7 days a week, 365 days a year to accept vehicles towed pursuant to this Agreement. Lighting must be sufficient to afford easy visibility to all areas of the storage facility. 2. Have the capacity to store a minimum of 200 vehicles simultaneously. 3 Comply with all City, County and State laws including all permits, licenses or land use approval requirements of the City or any other Local, County, State or Federal Agency, including all City Zoning requirements. 4. Be completely enclosed and employ a security system. The security system shall be adequate to preclude theft, vandalism or 18-6280/173969/my 3 HB -103-Item 9. - 9 damage of towed vehicles while stored at the Storage Facility. No towed vehicles shall be left parked or stored on the public streets or visible to the public at any time. Storage vehicles must be away from customer parking and the Tow Operator Office area. The Tow Operator must provide adequate parking for its equipment and be able to accommodate at least six (6) additional vehicles for customer parking. 5. Contain an enclosed protective storage garage capable of holding a minimum of three (3) vehicles that have been ordered impounded by the Police Department. Said protective storage garage shall be lockable and accessible to the Police Department on request. With the exception of private impounds, vehicles stored in said protective storage garage shall not be removed from storage until authorized by the Police Chief or his or her designee, in writing. 6. The Storage Facility shall be clearly marked with a telephone number to call if release is requested after normal working hours. Normal working hours shall be from 0800 hours to 1700 hours, Monday through Friday, except officially recognized holidays. 7. The Tow Operator may charge a reasonable gate fee for vehicle drop-off between 5:00 p.m. and 8:00 a.m. The Tow Operator shall pay any third party tow operator for tow service within two (2) business days of receipt of a towed vehicle. 18-6280/173969/mv 4 HB -104-Item 9. - 10 B. The Tow Operator shall maintain an Office within the Vehicle Storage Facility location and the Office shall: 1. Be posted with a sign listing the rates and charges of all towing and storage services offered. Such sign shall be conspicuously placed in the office or other places where customer financial transactions take place. The Sign shall include the company name, address, phone number and hours of operation, to be clearly visible from the roadway. 2. Be open and staffed with personnel able to conduct business Monday through Friday during normal business hours. 4. RELEASE OF IMPOUNDED VEHICLES. A. The Tow Operator shall: 1. Release impounded vehicles only upon receipt of a Police Department Release signed by an authorized officer or employee of the City's Police Department. 2. Ensure that vehicles are available for release from impound and storage 24 hours a day, 7 days a week, 365 days a year. 3. Advise the Records Bureau of the Police Department of all vehicles impounded pursuant to this Agreement and not released thirty (30) days after the conclusion of the tow rotation. Tow Operator shall identify such vehicles by year, make, model, color, license and vehicle identification number, and the Tow Operator shall notify the California Highway Patrol, Sacramento, California, 18-62801173969/mv 5 HB -105-Item 9. - 11 by receipt mail of any vehicles towed pursuant to the California Vehicle Code. 4. At the request of the City, release any vehicle from storage and/or impound at no cost to the registered owner, unless such liability or responsibility has been acknowledged by the Police Chief, or unless such liability or responsibility is imposed by law. 5. TOW OPERATOR'S EQUIPMENT. A. The Tow Operator shall provide a minimum of six (6) tow vehicles with drivers permanently stationed in the City while the Tow Operator is engaged in providing service to the City pursuant to this Agreement. The Tow Operator's equipment shall include 2 flatbeds, 3 wheel lifts, and 1 tow vehicle with a GVWR of at least 14,000 lbs. B. The Tow Operator shall provide special tow vehicles to allow for the towing of unique vehicles or equipment, such as classic or luxury automobiles, and specialized types of vehicles such as motor homes, motorcycles and forklifts, boats or large trucks. C. The Tow Operator shall not use converted pick-up trucks or other vehicles not specifically designed by the manufacturer for towing other vehicles. E. The Tow Operator vehicles used in the performance of this Agreement shall contain radio communication equipment that complies with all FCC requirements. City radio frequencies shall not be used by the Tow Operator. All communication equipment shall be purchased and maintained at the Tow Operator's expense. 18-6280/173969/my 6 HB -106-Item 9. - 12 F. The Tow Operator vehicles must be well maintained and next to new in appearance, with the name, address and phone number of the Tow Operator's Huntington Beach location permanently affixed to the vehicle. G. The Tow Operator vehicles shall be equipped with a cable winch of sufficient size and capacity to retrieve vehicles that may have gone over embankments or off traveled portions of roadways into inaccessible locations. I. The Tow Operator vehicles shall be equipped with the standard "tools of the trade" such as Slim Jim, dolly, etc. J. The Tow Operator's tow vehicles shall be rated, at a minimum, one ton capacity, and each vehicle shall be equipped, operated and maintained in compliance with the California Vehicle Code. K. The Tow Operator shall provide the Police Department immediate access to inspect vehicles, equipment and vehicle storage facilities. 6. TOW OPERATOR PERSONNEL. A. All Tow Operator personnel must maintain a valid State of California Driver's License at a class level to operate all vehicles and equipment used in the performance of the Agreement'. B. The Tow Operator shall provide all drivers engaged in operations pursuant to this Agreement, copies of the California Vehicle Code relating to vehicle towing and storage services. All personnel shall be trained in the proper and safe use of all towing equipment. 1 Tow Operator personnel with existing unexpired records are not required to resubmit information until such time as records are expired. 18-6280/173969/mv 7 HB -107-Item 9. - 13 C. All towing services performed under this Agreement shall be at the direction of a City representative if present at the scene. D. The Tow Operator's business operations shall be conducted at all times in an orderly, ethical and courteous manner. The Tow Operator shall use its best efforts to secure and maintain the confidence of vehicle owners and operators. Any complaints filed with the Police Department by a vehicle owner, operator or other patron, against the Tow Operator and/or employees, will be investigated by the City. At the conclusion of the investigation, a recommendation of action shall be forwarded to the Police Chief for action, including the recommendation of termination of this Agreement. E. All Tow Operator personnel in the field shall wear uniforms which bear the name of the individual and the Tow Operator in a conspicuous place on the uniform. F. Prior to commencing tow operations pursuant to this Agreement, all current (and future personnel) performing services under this Agreement, shall: (1) be fingerprinted and photographed by the Huntington Beach Police; and (2) submit the following information to the Huntington Beach Police Department: 1. Name, date of birth, driver's license number, and residence address; 18-6280/173969/mv 8 HB -108-Item 9. - 14 2. The business, occupation, or employment history for three (3) years immediately preceding the date of the application, including permit history; and 3. All criminal convictions or proceedings in which a plea of guilty or nob o contendere was entered, including Vehicle Code violations; G. All Tow Operator personnel engaged in towing vehicles pursuant to this Agreement shall be fluent in English. H. The Police Chief, at his or her sole discretion, may refuse to allow the Tow Operator personnel to perform services pursuant to this Agreement. The Police Chief will refuse to allow the Tow Operator personnel with bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity, including making a material misrepresentation in a job application or committed, aided, or abetted in the commission of any act, or act of omission, which if committed would be grounds for suspension or revocation of this Agreement. No Tow Operator employee shall perform services pursuant to this Agreement unless they are over eighteen (18) years old. 7. ROTATING SCHEDULE FOR SERVICE CALLS. A. If the City utilizes vehicle towing and storage services in addition to those provided by the Tow Operator, City shall use its best efforts to assign 18-6280/173969/n1v 9 HB -109-Item 9. - 15 requests for towing services on the 15 th and last day of the month on a rotating schedule. B. The City reserves the right to use any towing and storage services in the event of any emergency or calamity or when the Tow Operator services are unavailable for any reason. 8. TERM OF AGREEMENT. The term of this Agreement shall commence on April 1, 2018, and shall continue for a period not to exceed five (5) years or upon termination by either party, whichever occurs first. Performance under this Agreement shall not commence until the Tow Operator has satisfied all obligations contemplated in this Agreement. The Term of this Agreement may be extended for an additional five (5) years with approval of City Council and the Tow Operator in writing. 9. TERMINATION. The City reserves the right to terminate this Agreement in the event of a breach of any material term of this Agreement, which breach is not cured following written notice and a reasonable opportunity to cure. 10. PROCEDURE FOR TERMINATION IN THE EVENT OF BREACH. Prior to termination of the Agreement, the Police Chief shall give the Tow Operator notice in writing of the breach and a reasonable period to cure. The opportunity to cure period shall be a minimum of thirty (30) days (except in cases of emergency where a shorter time may be prescribed consistent with the nature of the emergency). If the breach is not timely cured, the Tow Operator will be considered in breach of this I 8-6280/173969/mv 10 HB -110-Item 9. - 16 Agreement and the Police Chief may recommend to the City Council termination of this Agreement. 11. FORCE MAJEURE; TOW OPERATOR'S INABILITY TO PERFORM. In the event the Tow Operator's performance of any of the terms, conditions or obligations of this Agreement is prevented by an occurrence beyond the Tow Operator's reasonable control, such inability to perform shall not be deemed a breach. The Tow Operator shall notify City in writing within thirty (30) days of its discovery of the occurrence or may be deemed in breach. In such an instance, the Tow Operator shall have reasonable time, under the circumstances, to perform in a manner satisfactory to the City. For the purpose of this Section, causes or events not within the control of the Tow Operator shall include, but not be limited to, acts of God, strikes, sabotage, riots or civil disturbances, epidemic, labor disputes, freight embargoes, explosions, natural disasters such as floods, earthquakes, landslides and fires, rationing, and power or communications failures. Inadequate finance or lack of regulatory (including obtaining and maintaining necessary permits or licenses) approval or the right to use the facilities of any public utility shall not excuse performance and will be considered breach. 12. REPRESENTATIVES OF THE PARTIES AND SERVICE OF NOTICES. The Police Chief, or his designee, shall be responsible for the administration of this Agreement. The Police Chief may issue to the Tow Operator direction concerning policies and procedures to be implemented in connection with the towing and storage of vehicles pursuant to this Agreement. In the event of dispute between the Tow Operator and the City as to the nature and extent of the services to be performed, or the level and manner of performance, the 18-6280/173969/my 11 HB -111-Item 9. - 17 Police Chief, or his designee, shall make the final and conclusive determination which shall be binding on the Tow Operator. Formal notices, demands and communications by either party shall be made in writing and may be effected by personal delivery or by mail. The representatives of the respective parties who are authorized to administer this Agreement, and to whom formal notices, demands and communications shall be given are as follows: To CITY: Police Chief City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 To TOW OPERATOR: Best Towing LLC John C. Vaughan 7472 Warner Ave. Huntington Beach, CA 92647 If the name of the representative designated to receive the notices, demands or communications, or the address of such person, is changed, written notice thereof shall be given within five (5) working days of said change. 13. TRANSFER OF OWNERSHIP. Except as provided herein, the Tow Operator shall not sell or transfer any rights or obligations under this Agreement without the prior written authorization of the Police Chief. 14. INDEPENDENT CONTRACTOR STATUS. The Tow Operator is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. The Tow Operator shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for the Tow Operator and its 18-6280/173969/my 12 HB -112-Item 9. - 18 officers, agents and employees, and all business licenses, if any, in connection with the services to be performed hereunder. 15. RATES, FEES AND CHARGES. A. The Tow Operator shall be responsible for all costs, charges or expenses incurred by the Tow Operator pursuant to the terms of this Agreement unless such liability or responsibility is imposed by law on another party. B. The rates, fees and charges imposed by the Tow Operator for towing or storing any vehicles pursuant to the terms of this Agreement shall not exceed those which are at any time approved by Resolution of the City. The City shall adjust the fees set forth in the Resolution and such fees shall increase pursuant to this Agreement based upon the change in the Metropolitan Consumer Price Index for the Los Angeles-Riverside- Orange County, California, area during the preceding year by such percentage change. The adjusted fee amount shall be rounded to the next highest dollar, and this amount shall constitute the fee authorized by Huntington Beach Municipal Code Chapter 5.66. C. Rates, fees and charges shall be posted in a conspicuous location at the Tow Operator's place of business and may be collected by the Tow Operator from a vehicle owner or property owner at the time the vehicle or property owner desires the release of the vehicle from the Tow Operator's storage facilities. D. Should there be any dispute between the Tow Operator and a vehicle owner or property owner regarding rates, fees and charges for services 18-6280/173969/mv 13 HB -113-Item 9. - 19 rendered pursuant to this Agreement, such dispute shall be resolved by the Police Chief, or his duly authorized representative. The Tow Operator shall make no demands upon the vehicle owner or property owner for a sum in excess of the amount determined to be reasonable by the Police Chief, or his authorized representative. E. The Tow Operator shall furnish to the person subject to towing, or his or her agent, an itemized statement of services performed, including labor and special equipment used in towing the vehicle and the charges made therefor upon the request of: 1. The registered owner; or 2. The legal owner; or 3, The insurance carrier of either (a) or (b); or 4. The duly authorized agent of any of the foregoing. The Tow Operator shall furnish a copy of such statement without demanding payment as a condition precedent. 16. LETTER OF CREDIT. A. The Tow Operator (Applicant) shall establish irrevocable letter of credit (or similar instrument guaranteeing performance of this Agreement if preapproved by the City) with an issuing bank approved in advance by the City, naming the City as the beneficiary, in the sum of $50,000.00 and in the form approved by the City Attorney. The letter of credit shall serve as security for the faithful performance by the Tow Operator of all the provisions and obligations of the Agreement. 18-6280/173969/my 14 HB -114-Item 9. - 20 B. If within thirty (30) days following receipt of written notice from the City of the Tow Operator's failure to provide service or pay City an amount owing under this Agreement, the letter of credit may be called by the City upon five (5) days prior written notice to the Tow Operator indicating the intention of the City to draw upon the letter of credit, the amount to be drawn and the reason therefor. C. The Tow Operator shall deposit a sum of money sufficient to restore the letter of credit to the original amount within thirty (30) days after notice from City that an amount has been withdrawn from the letter of credit, specifying the date and amount of the withdrawal. 17. ALTERNATIVE REMEDIES. Remedies provided for in this Agreement are cumulative and in addition to other rights the City may have at law or equity or under this Agreement. In no event shall the amount of any insurance, bond or letter of credit be construed to limit the Tow Operator's liability for damages. 18. REGULATION. The Tow Operator shall comply with all Federal, State and Local statutes and ordinances, shall make all reports required by the Vehicle Code of the State of California, and shall follow all reasonable rules and regulations which the Police Chief of the City may from time to time prescribe governing the conduct of the Tow Operator's operations under this Agreement. 18-6280/173969/my 15 HB -115-Item 9. - 21 19. RECORD KEEPING AND REPORTING. Tow Operator shall keep records of all tow operations, financial or otherwise conducted pursuant to this Agreement. In part, the Tow Operator shall record the following: Time a call for towing was received, the location of call, the license number of the vehicle, the make and model of vehicle, the date of release, the person or firm to whom released, the charges imposed and Police case number, if assigned. Said reports shall be submitted in writing to the City upon request in a form acceptable to the City. The Tow Operator shall provide access to all records maintained regarding this Agreement to the City upon demand for auditing purposes. 20. CITIZEN COMPLAINTS. A. Except as provided in Section 15, The Tow Operator shall establish written procedures for receiving, acting upon and resolving citizen complaints without intervention by the City consistent with the Tow Operator's complaint handling procedures which shall be designed to accomplish the following: 1. Receipt and acknowledgment of any complaint made in person or by telephone within twenty four (24) hours, regardless of the time the complaint is made. 2. Acknowledgment of any complaint received by mail at the Tow Operator's office within ten (10) business days of the date such complaint is made. 18-6280/173969/my 16 HB -116-Item 9. - 22 B. In the event of a dispute between the citizen and the Tow Operator regarding the bill, the Tow Operator shall promptly investigate the dispute and report the results to the subscriber. In the event the dispute is not resolved to the citizen's satisfaction, the Tow Operator shall provide in writing to the City its complaint procedures. C. The Tow Operator shall respond within two business days to complaints made to or referred by City. 21. WORKER'S COMPENSATION INSURANCE. Pursuant to California Labor Code Section 1861, the Tow Operator acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; the Tow Operator covenants that it shall comply with such provisions prior to commencing performance of the work hereunder. The Tow Operator shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. The Tow Operator shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractors' employees. The Tow Operator shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation insurance and the Tow Operator shall similarly require all subcontractors to waive subrogation. 18-6280/173969/my 17 HB -117-Item 9. - 23 22. INSURANCE. In addition to the workers compensation insurance and the Tow Operator's covenant to indemnify City, the Tow Operator shall obtain and furnish to City: A. A policy of general public liability insurance, including motor vehicle coverage covering the services. Said policy shall indemnify the Tow Operator, its officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with the services, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the services shall be deemed excess coverage and that the Tow Operator's insurance shall be primary. B. Automobile liability insurance covering all vehicles used by the Tow Operator to fulfill the herein Agreement, with minimum limits of liability of One Million Dollars ($1,000,000) combined single limit coverage against any injury, death, loss or damage due to wrongful or negligent acts or omissions by the Tow Operator and/or his employee and/or sub-tow operators. 18-6280/173969/my 18 HB -118-Item 9. - 24 C. On Hook Liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000). D. Garage keeper's liability insurance with minimum limits of One Million Dollars ($1,000,000). All insurance required hereunder shall be issued by a company rated "A" or better in Best's Key Rating Guide and authorized to transact business in the State of California as an admitted surety insurer. 23. CERTIFICATE OF INSURANCE. Prior to commencing performance of the work hereunder, the Tow Operator shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies shall not be canceled or modified without thirty (30) days prior written notice to City. The Tow Operator shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of City by the Tow Operator under this Agreement. City or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. The Tow Operator shall pay, in a prompt and timely manner, the premiums on all insurance herein above required. 18-6280/173969/mv 19 HB -119-Item 9. - 25 24. INCREASE IN COVERAGE. Nothing contained in this Agreement shall preclude the City from requiring the Tow Operator to increase the amounts of insurance coverage specified herein, or to obtain and maintain other types of insurance coverage, in order to protect the interests of the City and its vehicle owners and operators. The Tow Operator shall comply with such new or additional requirements within a reasonable time after receipt of City's written request or the City may terminate this Agreement. 25. INDEMNIFICATION. The Tow Operator hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all, claims, damages, losses, expenses, judgments, demands for defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to the Tow Operator's employees and damage to the Tow Operator's property, including failure to give the notice referred to in Section 10652 of the California Vehicle Code, arising directly or indirectly out of the obligations or operations herein undertaken by the Tow Operator, caused in whole or in part by any negligent act or omission of the Tow Operator, any sub-tow operators, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to current active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. The Tow Operator shall conduct all defense at its sole cost and expense and City shall approve selection of the Tow Operator's counsel. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation. This indemnity 18-6280/173969/mv 20 HB -120-Item 9. - 26 shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Tow Operator. 26. SUBCONTRACTING, DELEGATION AND ASSIGNMENT. A. The Tow Operator shall not delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the Chief of Police. Failure to receive prior approval shall be grounds for immediate termination of this Agreement at the option of the City Council. B. The Tow Operator may use subcontractors only after receiving written approval from the City. C. Any authorized assignment, delegation or subcontract shall be made in the name of the Tow Operator and shall not bind or purport to bind the City and shall not release the Tow Operator from any obligation under this Agreement. 27. COMPLIANCE WITH STATE LAW. A. Notwithstanding the requirement to comply with all Federal, State and City laws, the Tow Operator shall comply with Sections 22523, 22524, 22669, 22670, 22671, and 22850 through 22856 of the Vehicle Code which relate to the removal, storage and disposition of abandoned vehicles and liens of garage keepers. B. The Tow Operator shall keep fully informed of and comply with all City, County, State and Federal laws, ordinances and/or regulations which are applicable to the Tow Operator and/or those engaged or employed by the 18-6280/173969/my 21 HB -121-Item 9. - 27 Tow Operator in doing the services to be provided by the Tow Operator pursuant to the herein agreement, including but not limited to the handling of vehicles, lien sales with outstanding parking penalties, owner notifications, removal, storage and disposition of abandoned vehicles, etc. C. The Tow Operator shall obtain and maintain all permits and licenses, pay all charges and fees, and give all notices required by any Federal, State law or City ordinances or other laws relating to the performance of this Agreement. 28. NON-DISCRIMINATION. A. In the performance of this Agreement, the Tow Operator shall not discriminate against any member of the public, employee, sub-tow operator, or applicant for employment because of race, color, religion, ancestry, sex, national origin, handicap or age. The Tow Operator shall take affirmative action to ensure that members of the public are served, sub-tow operators and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin or age. B. The provisions of Paragraph A above shall be included in all solicitations or advertisements placed by or on behalf of the Tow Operator for personnel to perform any services under this Agreement. City shall have access to all documents, data and records of the Tow Operator and its sub- tow operators for purposes of determining compliance with the fair employment and non-discrimination provisions of this Section. 18-6280/173969/mv 22 HB -122-Item 9. - 28 29. PERMITS AND LICENSES. The Tow Operator shall obtain and maintain during the term of this Agreement all necessary licenses, permits and certificates required by law for the conduct of the Tow Operator's activities and for the provision of services hereunder, including a business license issued by the City. 30. ADVERTISING. The Tow Operator shall not display or use any signs, advertising materials, logos, etc., which indicate that the Tow Operator is an official towing service for the City of Huntington Beach without written authorization of the City. A designation of "Official Police Tow" or similar language is not acceptable without prior written consent. 31. CONFLICT OF INTEREST. The parties agree that, to their knowledge, no member of the City Council, officer or employee of the City has any interest, whether Agreement, financial or otherwise in this transaction, or in other business of the Tow Operator, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information shall be made in writing to the other party, even if such interest would not be considered a conflict of interest under applicable laws. The Tow Operator covenants that it has, at the time of execution of this Agreement, no interest, and that it shall not acquire any interest in the future, direct or indirect, which would conflict in any manner with the performance of services required hereunder. The Tow Operator further covenants that, in the performance of the services hereunder, no person having any such interest shall be engaged or employed. 18-6280/173969/mv 23 HB -123-Item 9. - 29 32. RESOLUTION OF DISPUTES. A. Disputes regarding the interpretation of application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between parties. B. Disputes regarding the precipitating cause for any removal, seizure or impound of a vehicle directed by the Police Department shall, to the extent feasible, be resolved by the Police Department Station Commander pursuant to the California Vehicle Code commencing with Section 22650 thereof. This section shall not apply to disputes concerning removal of vehicles pursuant to Sections 22660 through 22668, inclusive, and Sections 22655, 22658, or 22710 of the California Vehicle Code. Those disputes shall be referred to the attention of the Police Department Station Commander by the aggrieved party within ten (10) days after the disputed removal, seizure or impound. A hearing shall be conducted by an authorized member of the City's Police Department within forty-eight (48) hours, The Tow Operator shall abide by the decision rendered. 33. AGREEMENT NON-EXCLUSIVE. The City reserves the right to Agreement for towing and storage with more than one Tow Operator. 34. AMENDMENTS. This Agreement supersedes all prior proposals, agreements and understandings between the parties and may not be modified or terminated orally, and no modification, 18-6280/173969/my 24 HB -124-Item 9. - 30 termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. 35. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 36. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. 18-6280/173969/my 25 HB -125-Item 9. - 31 REVIEWED AND APPROVED: City Manager ATTEST: print name ITS: (cirele'one) Secretary/Chief Financial Officer/Asst. Secretary - Treasure BEST TOWING LLCC_AWORNIA CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor 18-6280/173969/my 26 HB -126-Item 9. - 32 City of Huntington Beach Tow Rate Schedule $ 175.00 $ 195.00 $ 300.00 $ 235.00 $ 70.00 $ 70.00 $ 60.00 $ 70.00 Basic Tow Service (Standard sling or wheel lift truck) Medium Duty or Flatbed Request Heavy Duty (3) Axle or larger Two Ton Dolly Rollover minimum Drop Linkage Clean-up fee (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket Winching per hour Vehicle Storage Vehicles Outside—per day Vehicles Inside—per day Motorcycles Outside—per day Motorcycles Inside—per day Truck or Motor homes (larger than 20') Vehicles stored as evidence—outside Vehicles stored as evidence-inside Motorcycles stored as evidence—outside Motorcycles stored as evidence—inside After hours release 5:00 p.m. – midnight Midnight – 8:00 a.m. Minimum Service Call or Drop Fee $ 140.00 $ 175.00 $ 60.00 $ 70.00 $ 35.00 $ 45.00 $ 65.00 $ 35.00 $ 45.00 $ 25.00 $ 30.00 $ 80.00 $ 110.00 $ 90.00 **The rate schedule will be effective April 1 st , 2018 through March 31 st , 2023. There will be no change in the fee schedule based on CPI for the first 2 years of this new contract (December 1 st , 2018 through November 30th , 2020). The fee schedule can be adjusted based on the CPI starting on December 1 st , 2020. HB -127-Item 9. - 33 2018/2023 CONTRACT TOW ROTATION SCHEDULE 2018 2019 2020 2021 2022 2023 12/31 to 1/15 1/15 to 1/31 1/31 to 2/15 2/15 to 2/28 2/28 to 3/15 3/15 to 3/31 3/31 to 4/15 4/15 to 4/30 4/30 to 5/15 5/15 to 5/31 5/31 to 6/15 6/15 to 6/30 6/30 to 7/15 7/15 to 7/31 7/31 to 8/15 8/15 to 8/31 8/31 to 9/15 9/15 to 9/30 9/30 to 10/15 10/15 to 10/31 10/31 to 11/15 11/15 to 11/30 11/30 to 12/15 12/15 to 12/31 MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MANDIC BEST MAN DIC BEST BEST MANDIC BEST MAN DIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC MANDIC BEST MANDIC BEST MANDIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DK BEST MAN DIC BEST MAN DIC BEST BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST HB -128-Item 9. - 34 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MANDIC MOTORS INC., FOR POLICE DIRECTED TOWING AND STORAGE SERVICES This Police Directed Towing And Storage Agreement ("Agreement") is made and entered into this day of April 1, 2018, by and between the CITY OF HUNTINGTON BEACH , a municipal corporation (hereinafter "City" ), and MANDIC MOTORS INC., a CALIFORNIA CORPORATION (hereinafter "Tow Operator"), located at 18881Gothard Street., Huntington Beach, California 92648. RECITALS: WHEREAS, the City requires, from time to time, towing and storage services in connection with vehicles which have been determined to be a public nuisance pursuant to the Huntington Beach Municipal Code, or which are in violation of statutes and ordinances relating to parking, traffic, and law enforcement; and The Tow Operator represents that it has the managerial and operating personnel and the facilities and equipment necessary to provide the required vehicle towing and storage services to the City pursuant the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained, the parties agree as follows: 1. SCOPE OF SERVICES. The Tow Operator agrees to furnish towing and storage services to the City as generally described in the Recitals (which are incorporated herein by this reference), and more particularly described in the Tow Operator's proposal dated November 27 th , 2017 and as further defined by this Agreement. Such services shall be performed in a prompt, 18-6280/173969/Inv HB -129-Item 9. - 35 efficient, and orderly manner only after being notified by City's representative to commence towing of a vehicle. 2. DUTIES OF TOW OPERATOR. A. The Tow Operator shall: 1. Respond to the location requested by the City within twenty (20) minutes of receipt of a call from City. If the Tow Operator is not able to respond within the aforementioned response time, the Tow Operator shall notify the City immediately of the expected time of arrival (ETA). If the ETA is unacceptable to the City, the City reserves the right to contact an alternate towing operator to provide the service. 2. Provide for the deployment of tow vehicles when special events occur in the City, such as Fourth of July, US Open, street fairs and/or parades as well as DUI check points, as requested by the City. The Tow Operator shall have the capability to tow up to 100 vehicles in a five (5) hour period for special events or DUI check points. The Tow Operator may utilize pre-approved subcontractors to tow up to 100 vehicles in a five (5) hour period for said special events or DUI check points. Such additional towing services will be coordinated by the City with the Tow Operator in advance. The City, at its sole discretion, may utilize tow services of any company for special events or DUI check points. 3. Not perform any work or services upon any towed and impounded vehicle without first obtaining the owner's written consent or as necessary for emergency or for security purposes. Any parts or accessories removed or 18-6280/173969/my 2 HB -130-Item 9. - 36 modified shall be listed on the itemized statement and the statement shall be stored in the Tow Operator's Business Office. 4. Not solicit or agree to make repairs on a towed and impounded vehicle(s) until the vehicle(s) has been released by the Police Chief, or his designee. 5. Secure and safeguard all vehicles and personal property received by the Tow Operator pursuant to this Agreement. 6. Not bill the City in excess of the rates established by Resolution of the City Council. 3. TOW OPERATOR VEHICLE STORAGE FACILITY AND OFFICE REQUIREMENTS. A. The Tow Operator's vehicle storage facility (Storage Facility) shall hereby be designates as the a City "Official Police Garage" and a "Designated Public Garage" and: 1. Be maintained within the City and be accessible 24 hours a day, 7 days a week, 365 days a year to accept vehicles towed pursuant to this Agreement. Lighting must be sufficient to afford easy visibility to all areas of the storage facility. 2. Have the capacity to store a minimum of 200 vehicles simultaneously. 3 Comply with all City, County and State laws including all permits, licenses or land use approval requirements of the City or any other Local, County, State or Federal Agency, including all City Zoning requirements. 4. Be completely enclosed and employ a security system. The security system shall be adequate to preclude theft, vandalism or 18-6280/173969/my 3 HB -131-Item 9. - 37 damage of towed vehicles while stored at the Storage Facility. No towed vehicles shall be left parked or stored on the public streets or visible to the public at any time. Storage vehicles must be away from customer parking and the Tow Operator Office area. The Tow Operator must provide adequate parking for its equipment and be able to accommodate at least six (6) additional vehicles for customer parking. 5. Contain an enclosed protective storage garage capable of holding a minimum of three (3) vehicles that have been ordered impounded by the Police Department. Said protective storage garage shall be lockable and accessible to the Police Department on request. With the exception of private impounds, vehicles stored in said protective storage garage shall not be removed from storage until authorized by the Police Chief or his or her designee, in writing. 6. The Storage Facility shall be clearly marked with a telephone number to call if release is requested after normal working hours. Normal working hours shall be from 0800 hours to 1700 hours, Monday through Friday, except officially recognized holidays. 7. The Tow Operator may charge a reasonable gate fee for vehicle drop-off between 5:00 p.m. and 8:00 a.m. The Tow Operator shall pay any third party tow operator for tow service within two (2) business days of receipt of a towed vehicle. 18-6280/173969/my 4 HB -132-Item 9. - 38 B. The Tow Operator shall maintain an Office within the Vehicle Storage Facility location and the Office shall: 1. Be posted with a sign listing the rates and charges of all towing and storage services offered. Such sign shall be conspicuously placed in the office or other places where customer financial transactions take place. The Sign shall include the company name, address, phone number and hours of operation, to be clearly visible from the roadway. 2. Be open and staffed with personnel able to conduct business Monday through Friday during normal business hours. 4. RELEASE OF IMPOUNDED VEHICLES. A. The Tow Operator shall: I. Release impounded vehicles only upon receipt of a Police Department Release signed by an authorized officer or employee of the City's Police Department. 2. Ensure that vehicles are available for release from impound and storage 24 hours a day, 7 days a week, 365 days a year. 3. Advise the Records Bureau of the Police Department of all vehicles impounded pursuant to this Agreement and not released thirty (30) days after the conclusion of the tow rotation. Tow Operator shall identify such vehicles by year, make, model, color, license and vehicle identification number, and the Tow Operator shall notify the California Highway Patrol, Sacramento, California, 18-6280/173969/mv 5 HB -133-Item 9. - 39 by receipt mail of any vehicles towed pursuant to the California Vehicle Code. 4. At the request of the City, release any vehicle from storage and/or impound at no cost to the registered owner, unless such liability or responsibility has been acknowledged by the Police Chief, or unless such liability or responsibility is imposed by law. 5. TOW OPERATOR'S EQUIPMENT. A. The Tow Operator shall provide a minimum of six (6) tow vehicles with drivers permanently stationed in the City while the Tow Operator is engaged in providing service to the City pursuant to this Agreement. The Tow Operator's equipment shall include 2 flatbeds, 3 wheel lifts, and 1 tow vehicle with a GVWR of at least 14,000 lbs. B. The Tow Operator shall provide special tow vehicles to allow for the towing of unique vehicles or equipment, such as classic or luxury automobiles, and specialized types of vehicles such as motor homes, motorcycles and forklifts, boats or large trucks. C. The Tow Operator shall not use converted pick-up trucks or other vehicles not specifically designed by the manufacturer for towing other vehicles. E. The Tow Operator vehicles used in the performance of this Agreement shall contain radio communication equipment that complies with all FCC requirements. City radio frequencies shall not be used by the Tow Operator. All communication equipment shall be purchased and maintained at the Tow Operator's expense. 18-6280/1739691mv 6 HB -134-Item 9. - 40 F. The Tow Operator vehicles must be well maintained and next to new in appearance, with the name, address and phone number of the Tow Operator's Huntington Beach location permanently affixed to the vehicle. G. The Tow Operator vehicles shall be equipped with a cable winch of sufficient size and capacity to retrieve vehicles that may have gone over embankments, or off traveled portions of roadways into inaccessible locations. I. The Tow Operator vehicles shall be equipped with the standard "tools of the trade" such as Slim Jim, dolly, etc. J. The Tow Operator's tow vehicles shall be rated, at a minimum, one ton capacity, and each vehicle shall be equipped, operated and maintained in compliance with the California Vehicle Code. K. The Tow Operator shall provide the Police Department immediate access to inspect vehicles, equipment and vehicle storage facilities. 6. TOW OPERATOR PERSONNEL. A. All Tow Operator personnel must maintain a valid State of California Driver's License at a class level to operate all vehicles and equipment used in the performance of the Agreement'. B. The Tow Operator shall provide all drivers engaged in operations pursuant to this Agreement, copies of the California Vehicle Code relating to vehicle towing and storage services. All personnel shall be trained in the proper and safe use of all towing equipment. 1 Tow Operator personnel with existing unexpired records are not required to resubmit information until such time as records are expired. 18-6280/1739691mv 7 HB -135-Item 9. - 41 C. All towing services performed under this Agreement shall be at the direction of a City representative if present at the scene. D. The Tow Operator's business operations shall be conducted at all times in an orderly, ethical and courteous manner. The Tow Operator shall use its best efforts to secure and maintain the confidence of vehicle owners and operators. Any complaints filed with the Police Department by a vehicle owner, operator or other patron, against the Tow Operator and/or employees, will be investigated by the City. At the conclusion of the investigation, a recommendation of action shall be forwarded to the Police Chief for action, including the recommendation of termination of this Agreement. E. All Tow Operator personnel in the field shall wear uniforms which bear the name of the individual and the Tow Operator in a conspicuous place on the uniform. F. Prior to commencing tow operations pursuant to this Agreement, all current (and future personnel) performing services under this Agreement, shall: (1) be fingerprinted and photographed by the Huntington Beach Police; and (2) submit the following information to the Huntington Beach Police Department: 1. Name, date of birth, driver's license number, and residence address; 18-6280/173969/mv 8 HB -136-Item 9. - 42 2. The business, occupation, or employment history for three (3) years immediately preceding the date of the application, including permit history; and 3. All criminal convictions or proceedings in which a plea of guilty or nob o contendere was entered, including Vehicle Code violations; G. All Tow Operator personnel engaged in towing vehicles pursuant to this Agreement shall be fluent in English. H. The Police Chief, at his or her sole discretion, may refuse to allow the Tow Operator personnel to perform services pursuant to this Agreement. The Police Chief will refuse to allow the Tow Operator personnel with bad moral character, intemperate habits or a bad reputation for truth, honesty or integrity, including making a material misrepresentation in a job application or committed, aided, or abetted in the commission of any act, or act of omission, which if committed would be grounds for suspension or revocation of this Agreement. No Tow Operator employee shall perform services pursuant to this Agreement unless they are over eighteen (18) years old. 7. ROTATING SCHEDULE FOR SERVICE CALLS. A. If the City utilizes vehicle towing and storage services in addition to those provided by the Tow Operator, City shall use its best efforts to assign 18-62801173969/mv 9 HB -137-Item 9. - 43 requests for towing services on the 15 th and last day of the month on a rotating schedule. B. The City reserves the right to use any towing and storage services in the event of any emergency or calamity or when the Tow Operator services are unavailable for any reason. 8. TERM OF AGREEMENT. The term of this Agreement shall commence on April 1, 2018, and shall continue for a period not to exceed five (5) years or upon termination by either party, whichever occurs first. Performance under this Agreement shall not commence until the Tow Operator has satisfied all obligations contemplated in this Agreement. The Term of this Agreement may be extended for an additional five (5) years with approval of City Council and the Tow Operator in writing. 9. TERMINATION. The City reserves the right to terminate this Agreement in the event of a breach of any material term of this Agreement, which breach is not cured following written notice and a reasonable opportunity to cure. 10. PROCEDURE FOR TERMINATION IN THE EVENT OF BREACH. Prior to termination of the Agreement, the Police Chief shall give the Tow Operator notice in writing of the breach and a reasonable period to cure. The opportunity to cure period shall be a minimum of thirty (30) days (except in cases of emergency where a shorter time may be prescribed consistent with the nature of the emergency). If the breach is not timely cured, the Tow Operator will be considered in breach of this 18-6280/173969/my 10 HB -138-Item 9. - 44 Agreement and the Police Chief may recommend to the City Council termination of this Agreement. 11. FORCE MAJEURE; TOW OPERATOR'S INABILITY TO PERFORM. In the event the Tow Operator's performance of any of the terms, conditions or obligations of this Agreement is prevented by an occurrence beyond the Tow Operator's reasonable control, such inability to perform shall not be deemed a breach. The Tow Operator shall notify City in writing within thirty (30) days of its discovery of the occurrence or may be deemed in breach. In such an instance, the Tow Operator shall have reasonable time, under the circumstances, to perform in a manner satisfactory to the City. For the purpose of this Section, causes or events not within the control of the Tow Operator shall include, but not be limited to, acts of God, strikes, sabotage, riots or civil disturbances, epidemic, labor disputes, freight embargoes, explosions, natural disasters such as floods, earthquakes, landslides and fires, rationing, and power or communications failures. Inadequate finance or lack of regulatory (including obtaining and maintaining necessary permits or licenses) approval or the right to use the facilities of any public utility shall not excuse performance and will be considered breach. 12. REPRESENTATIVES OF THE PARTIES AND SERVICE OF NOTICES. The Police Chief, or his designee, shall be responsible for the administration of this Agreement. The Police Chief may issue to the Tow Operator direction concerning policies and procedures to be implemented in connection with the towing and storage of vehicles pursuant to this Agreement. In the event of dispute between the Tow Operator and the City as to the nature and extent of the services to be performed, or the level and manner of performance, the 18-6280/173969/Inv 11 HB -139-Item 9. - 45 Police Chief, or his designee, shall make the final and conclusive determination which shall be binding on the Tow Operator. Formal notices, demands and communications by either party shall be made in writing and may be effected by personal delivery or by mail. The representatives of the respective parties who are authorized to administer this Agreement, and to whom formal notices, demands and communications shall be given are as follows: To CITY: Police Chief City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 To TOW OPERATOR: Mandic Motors Inc. Robert Mandic 18881 Gothard Street Huntington Beach, CA 92648 If the name of the representative designated to receive the notices, demands or communications, or the address of such person, is changed, written notice thereof shall be given within five (5) working days of said change. 13. TRANSFER OF OWNERSHIP. Except as provided herein, the Tow Operator shall not sell or transfer any rights or obligations under this Agreement without the prior written authorization of the Police Chief. 14. INDEPENDENT CONTRACTOR STATUS. The Tow Operator is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. The Tow Operator shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for the Tow Operator and its 18-6280/173969/my 12 HB -140-Item 9. - 46 officers, agents and employees, and all business licenses, if any, in connection with the services to be performed hereunder. 15. RATES, FEES AND CHARGES. A. The Tow Operator shall be responsible for all costs, charges or expenses incurred by the Tow Operator pursuant to the terms of this Agreement unless such liability or responsibility is imposed by law on another party. B. The rates, fees and charges imposed by the Tow Operator for towing or storing any vehicles pursuant to the terms of this Agreement shall not exceed those which are at any time approved by Resolution of the City. The City shall adjust the fees set forth in the Resolution and such fees shall increase pursuant to this Agreement based upon the change in the Metropolitan Consumer Price Index for the Los Angeles-Riverside- Orange County, California, area during the preceding year by such percentage change. The adjusted fee amount shall be rounded to the next highest dollar, and this amount shall constitute the fee authorized by Huntington Beach Municipal Code Chapter 5.66. C. Rates, fees and charges shall be posted in a conspicuous location at the Tow Operator's place of business and may be collected by the Tow Operator from a vehicle owner or property owner at the time the vehicle or property owner desires the release of the vehicle from the Tow Operator's storage facilities. D. Should there be any dispute between the Tow Operator and a vehicle owner or property owner regarding rates, fees and charges for services 18-6280/173969/my 13 HB -141-Item 9. - 47 rendered pursuant to this Agreement, such dispute shall be resolved by the Police Chief, or his duly authorized representative. The Tow Operator shall make no demands upon the vehicle owner or property owner for a sum in excess of the amount determined to be reasonable by the Police Chief, or his authorized representative. E. The Tow Operator shall furnish to the person subject to towing, or his or her agent, an itemized statement of services performed, including labor and special equipment used in towing the vehicle and the charges made therefor upon the request of: 1. The registered owner; or 2. The legal owner; or 3. The insurance carrier of either (a) or (b); or 4. The duly authorized agent of any of the foregoing. The Tow Operator shall furnish a copy of such statement without demanding payment as a condition precedent. 16. LETTER OF CREDIT. A. The Tow Operator (Applicant) shall establish irrevocable letter of credit (or similar instrument guaranteeing performance of this Agreement if preapproved by the City) with an issuing bank approved in advance by the City, naming the City as the beneficiary, in the sum of $50,000.00 and in the form approved by the City Attorney. The letter of credit shall serve as security for the faithful performance by the Tow Operator of all the provisions and obligations of the Agreement. 18-6280/173969/mv 14 HB -142-Item 9. - 48 B. If within thirty (30) days following receipt of written notice from the City of the Tow Operator's failure to provide service or pay City an amount owing under this Agreement, the letter of credit may be called by the City upon five (5) days prior written notice to the Tow Operator indicating the intention of the City to draw upon the letter of credit, the amount to be drawn and the reason therefor. C. The Tow Operator shall deposit a sum of money sufficient to restore the letter of credit to the original amount within thirty (30) days after notice from City that an amount has been withdrawn from the letter of credit, specifying the date and amount of the withdrawal. 17. ALTERNATIVE REMEDIES. Remedies provided for in this Agreement are cumulative and in addition to other rights the City may have at law or equity or under this Agreement. In no event shall the amount of any insurance, bond or letter of credit be construed to limit the Tow Operator's liability for damages. 18. REGULATION. The Tow Operator shall comply with all Federal, State and Local statutes and ordinances, shall make all reports required by the Vehicle Code of the State of California, and shall follow all reasonable rules and regulations which the Police Chief of the City may from time to time prescribe governing the conduct of the Tow Operator's operations under this Agreement. 18-6280/173969/n1v 15 HB -143-Item 9. - 49 19. RECORD KEEPING AND REPORTING. Tow Operator shall keep records of all tow operations, financial or otherwise conducted pursuant to this Agreement. In part, the Tow Operator shall record the following: Time a call for towing was received, the location of call, the license number of the vehicle, the make and model of vehicle, the date of release, the person or firm to whom released, the charges imposed and Police case number, if assigned. Said reports shall be submitted in writing to the City upon request in a form acceptable to the City. The Tow Operator shall provide access to all records maintained regarding this Agreement to the City upon demand for auditing purposes. 20. CITIZEN COMPLAINTS. A. Except as provided in Section 15, The Tow Operator shall establish written procedures for receiving, acting upon and resolving citizen complaints without intervention by the City consistent with the Tow Operator's complaint handling procedures which shall be designed to accomplish the following: Receipt and acknowledgment of any complaint made in person or by telephone within twenty four (24) hours, regardless of the time the complaint is made. 2. Acknowledgment of any complaint received by mail at the Tow Operator's office within ten (10) business days of the date such complaint is made. 18-6280/173969/my 16 HB -144-Item 9. - 50 B. In the event of a dispute between the citizen and the Tow Operator regarding the bill, the Tow Operator shall promptly investigate the dispute and report the results to the subscriber. In the event the dispute is not resolved to the citizen's satisfaction, the Tow Operator shall provide in writing to the City its complaint procedures. C. The Tow Operator shall respond within two business days to complaints made to or referred by City. 21. WORKER'S COMPENSATION INSURANCE. Pursuant to California Labor Code Section 1861, the Tow Operator acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; the Tow Operator covenants that it shall comply with such provisions prior to commencing performance of the work hereunder. The Tow Operator shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. The Tow Operator shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractors' employees. The Tow Operator shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation insurance and the Tow Operator shall similarly require all subcontractors to waive subrogation. 18-6280/173969/mv 17 HB -145-Item 9. - 51 22. INSURANCE. In addition to the workers' compensation insurance and the Tow Operator's covenant to indemnify City, the Tow Operator shall obtain and furnish to City: A. A policy of general public liability insurance, including motor vehicle coverage covering the services. Said policy shall indemnify the Tow Operator, its officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with the services, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the services shall be deemed excess coverage and that the Tow Operator's insurance shall be primary. B. Automobile liability insurance covering all vehicles used by the Tow Operator to fulfill the herein Agreement, with minimum limits of liability of One Million Dollars ($1,000,000) combined single limit coverage against any injury, death, loss or damage due to wrongful or negligent acts or omissions by the Tow Operator and/or his employee and/or sub-tow operators. 18-6280/173969/mv 18 HB -146-Item 9. - 52 C. On Hook Liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000). D. Garage keeper's liability insurance with minimum limits of One Million Dollars ($1,000,000). All insurance required hereunder shall be issued by a company rated "A" or better in Best's Key Rating Guide and authorized to transact business in the State of California as an admitted surety insurer. 23. CERTIFICATE OF INSURANCE. Prior to commencing performance of the work hereunder, the Tow Operator shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies shall not be canceled or modified without thirty (30) days prior written notice to City. The Tow Operator shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of City by the Tow Operator under this Agreement. City or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. The Tow Operator shall pay, in a prompt and timely manner, the premiums on all insurance herein above required. 18-6280/173969/mv 19 HB -147-Item 9. - 53 24. INCREASE IN COVERAGE. Nothing contained in this Agreement shall preclude the City from requiring the Tow Operator to increase the amounts of insurance coverage specified herein, or to obtain and maintain other types of insurance coverage, in order to protect the interests of the City and its vehicle owners and operators. The Tow Operator shall comply with such new or additional requirements within a reasonable time after receipt of City's written request or the City may terminate this Agreement. 25, INDEMNIFICATION. The Tow Operator hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all, claims, damages, losses, expenses, judgments, demands for defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to the Tow Operator's employees and damage to the Tow Operator's property, including failure to give the notice referred to in Section 10652 of the California Vehicle Code, arising directly or indirectly out of the obligations or operations herein undertaken by the Tow Operator, caused in whole or in part by any negligent act or omission of the Tow Operator, any sub-tow operators, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to current active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. The Tow Operator shall conduct all defense at its sole cost and expense and City shall approve selection of the Tow Operator's counsel. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation. This indemnity 18-6280/173969/mv 20 HB -148-Item 9. - 54 shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Tow Operator. 26. SUBCONTRACTING, DELEGATION AND ASSIGNMENT. A. The Tow Operator shall not delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the Chief of Police. Failure to receive prior approval shall be grounds for immediate termination of this Agreement at the option of the City Council. B. The Tow Operator may use subcontractors only after receiving written approval from the City. C. Any authorized assignment, delegation or subcontract shall be made in the name of the Tow Operator and shall not bind or purport to bind the City and shall not release the Tow Operator from any obligation under this Agreement. 27. COMPLIANCE WITH STATE LAW. A. Notwithstanding the requirement to comply with all Federal, State and City laws, the Tow Operator shall comply with Sections 22523, 22524, 22669, 22670, 22671, and 22850 through 22856 of the Vehicle Code which relate to the removal, storage and disposition of abandoned vehicles and liens of garage keepers. B. The Tow Operator shall keep fully informed of and comply with all City, County, State and Federal laws, ordinances and/or regulations which are applicable to the Tow Operator and/or those engaged or employed by the 18-6280/1739691mv 21 HB -149-Item 9. - 55 Tow Operator in doing the services to be provided by the Tow Operator pursuant to the herein agreement, including but not limited to the handling of vehicles, lien sales with outstanding parking penalties, owner notifications, removal, storage and disposition of abandoned vehicles, etc. C. The Tow Operator shall obtain and maintain all permits and licenses, pay all charges and fees, and give all notices required by any Federal, State law or City ordinances or other laws relating to the performance of this Agreement. 28. NON-DISCRIMINATION. A. In the performance of this Agreement, the Tow Operator shall not discriminate against any member of the public, employee, sub-tow operator, or applicant for employment because of race, color, religion, ancestry, sex, national origin, handicap or age. The Tow Operator shall take affirmative action to ensure that members of the public are served, sub-tow operators and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin or age. B. The provisions of Paragraph A above shall be included in all solicitations or advertisements placed by or on behalf of the Tow Operator for personnel to perform any services under this Agreement. City shall have access to all documents, data and records of the Tow Operator and its sub- tow operators for purposes of determining compliance with the fair employment and non-discrimination provisions of this Section. 18-6280/173969/mv 22 HB -150-Item 9. - 56 29. PERMITS AND LICENSES. The Tow Operator shall obtain and maintain during the term of this Agreement all necessary licenses, permits and certificates required by law for the conduct of the Tow Operator's activities and for the provision of services hereunder, including a business license issued by the City. 30. ADVERTISING. The Tow Operator shall not display or use any signs, advertising materials, logos, etc., which indicate that the Tow Operator is an official towing service for the City of Huntington Beach without written authorization of the City. A designation of "Official Police Tow" or similar language is not acceptable without prior written consent. 31, CONFLICT OF INTEREST. The parties agree that, to their knowledge, no member of the City Council, officer or employee of the City has any interest, whether Agreement, financial or otherwise in this transaction, or in other business of the Tow Operator, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information shall be made in writing to the other party, even if such interest would not be considered a conflict of interest under applicable laws. The Tow Operator covenants that it has, at the time of execution of this Agreement, no interest, and that it shall not acquire any interest in the future, direct or indirect, which would conflict in any manner with the performance of services required hereunder. The Tow Operator further covenants that, in the performance of the services hereunder, no person having any such interest shall be engaged or employed. 18-6280/173969/mv 23 HB -151-Item 9. - 57 32. RESOLUTION OF DISPUTES. A. Disputes regarding the interpretation of application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between parties. B. Disputes regarding the precipitating cause for any removal, seizure or impound of a vehicle directed by the Police Department shall, to the extent feasible, be resolved by the Police Department Station Commander pursuant to the California Vehicle Code commencing with Section 22650 thereof. This section shall not apply to disputes concerning removal of vehicles pursuant to Sections 22660 through 22668, inclusive, and Sections 22655, 22658, or 22710 of the California Vehicle Code. Those disputes shall be referred to the attention of the Police Department Station Commander by the aggrieved party within ten (10) days after the disputed removal, seizure or impound. A hearing shall be conducted by an authorized member of the City's Police Department within forty-eight (48) hours. The Tow Operator shall abide by the decision rendered. 31 AGREEMENT NON-EXCLUSIVE. The City reserves the right to Agreement for towing and storage with more than one Tow Operator. 34. AMENDMENTS. This Agreement supersedes all prior proposals, agreements and understandings between the parties and may not be modified or terminated orally, and no modification, 18-6280/173969/my 24 HB -152-Item 9. - 58 termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. 35. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 36. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. 18-6280/173969/my 25 HB -153-Item 9. - 59 ITS; (circle one) Chairm ice President City Attorney At TIATED AND APPIROVED: 1/44i- Police Chief MANDIC MOTORS INC., a CALIFORNIA CITY OF HUNTINGTON BEACH, a CORPORATION municipal corporation of the State of California BY: P. •t.. Leg An- No• )iv1/40,„,4 AND By: 10 • /'1ctd t name ITS; (circ(one) Sect_2ta.y/ 2liief Financial Officer/Asst. Secretary REVIEWED AND APPROVED: City Manager Mayor ATTEST: City Clerk 18-6280/173969/my 26 HB -154-Item 9. - 60 City of Huntington Beach Tow Rate Schedule Basic Tow Service (Standard sling or wheel lift truck) Medium Duty or Flatbed Request Heavy Duty (3) Axle or larger Two Ton Dolly Rollover minimum Drop Linkage Clean-up fee (Fee charged to the City shall remain $35.00 by contract) Hazmat fee, per 5 gallon bucket Winching per hour Vehicle Storage Vehicles Outside—per day Vehicles Inside—per day Motorcycles Outside—per day Motorcycles Inside—per day Truck or Motor homes (larger than 20') Vehicles stored as evidence—outside Vehicles stored as evidence-inside Motorcycles stored as evidence—outside Motorcycles stored as evidence—inside After hours release 5:00 p.m. – midnight Midnight – 8:00 a.m. Minimum Service Call or Drop Fee $ 175.00 $ 195.00 $ 300.00 $ 235.00 $ 70,00 $ 70.00 $ 60.00 $ 70.00 $ 140.00 $ 175.00 $ 60.00 $ 70.00 $ 35.00 $ 45.00 $ 65.00 $ 35.00 $ 45.00 $ 25.00 $ 30.00 $ 80.00 $ 110.00 $ 90.00 **The rate schedule will be effective April l st , 2018 through March 31 st , 2023. There will be no change in the fee schedule based on CPI for the first 2 years of this new contract (December 1 st , 2018 through November 30 th , 2020). The fee schedule can be adjusted based on the CPI starting on December 1 st , 2020. HB -155-Item 9. - 61 2018/2023 CONTRACT TOW ROTATION SCHEDULE 2018 2019 2020 2021 2022 2023 12/31 to 1/15 1/15 to 1/31 1/31 to 2/15 2/15 to 2/28 2/28 to 3/15 3/15 to 3/31 3/31 to 4/15 4/15 to 4/30 4/30 to 5/15 5/15 to 5/31 5/31 to 6/15 6/15 to 6/30 6/30 to 7/15 7/15 to 7/31 7/31 to 8/15 8/15 to 8/31 8/31 to 9/15 9/15 to 9/30 9/30 to 10/15 10/15 to 10/31 10/31 to 11/15 11/15 to 11/30 11/30 to 12/15 12/15 to 12/31 MAN DIC BEST MANDIC BEST MAN DIC BEST MAN DC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MANDIC BEST MAN DIC BEST MAN DIC BEST BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC MAN DIC BEST MANDIC BEST MANDIC BEST MAN DIC BEST MAN DIC BEST MANDIC BEST MAN DIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MAN DIC BEST MAN DIC BEST BEST MANDIC BEST MANDIC BEST MANDIC BEST MAN DIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MANDIC BEST MAN DIC BEST MANDIC BEST MANDIC MANDIC BEST MAN DIC BEST MANDIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST MAN DIC BEST BEST MANDIC BEST MAN DIC BEST MANDIC BEST HB -156-Item 9. - 62 e ACC R CERTIFICATE OF LIABILITY INSURANCE Euvre(mmommn 4/10/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER The Empire Company 550 North Park Center Drive Suite 205 Santa Ana CA 92705 INSURED Mandic Motors Inc. 18881 Gothard Street Huntington Beach CA 92648 CONTACT NAME: Kathy Tran PHONE IAJC. No Ea: E-MAIL ADDRESS:far aneenc ire-co.com INSURER(S) AFFORDING COVERAGE INSURER A :EMC Insurance Companies issusEss:National Liability & Fire Insurance INSURER C: INSURER : INSURER E: INSURER F: FAX Lk/C, No): NAIC COVERAGES CERTIFICATE NUMBER:2017/20 18-CITY OF HE ONLY REVISION NUMBER: THIS IS INDICATED. INSR LTR CERTIFICATE EXCLUSIONS TO CERTIFY THAT THE POLICIES NOTINITHSTANDING ANY REQUIREMENT, MAY BE ISSUED OR MAY AND CONDITIONS OF SUCH PERTAIN, POLICIES. lAooL iNSE) OF INSURANCE SUM wvn LISTED BELOW HAVE BEEN TERM OR CONDITION OF ANY THE INSURANCE AFFORDED BY LIMITS SHOWN MAY HAVE BEEN REDUCED POLICY NUMBER ISSUED TO CONTRACT THE POLICIES BY POUCY EFF IMM/OD/YYYY1 THE INSURED NAMED ABOVE FOR THE POLICY PERIOD OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, PAID CLAIMS. TYPE OF INSURANCE POLICY EXP (MM/DONYYY) LIMITS X COMMERCIAL GENERAL CLAIMS-MADE LIABILITY X 2.Cc.L.R 5X4-07-43-18 AP • • .10 VED ar 12/7/2017 AS A lillik' ' . i 1 5 . 12/7/2018 • . , (kM lit EACH OCCURRENCE $ 1,000,000 DAMAGE-b RENTED PREMISES (Ea occurrence) $ 300,000 MED EXP (Any one person) $ 5.000 PERSONAL & ADV INJURY $ Included GEN'L AGGREGATE LIMIT APPLIES POLICY ---7 PRO- JECT !OTHER PER: GENERAL AGGREGATE S 2,000,000 X r j LOG PRODUCTS - COMP/OP AGG $ 2,000,000 S _, X AUTOMOBILE LIABILITY ANY AUTO ALL OWNED — AUTOS X HIRED AUTOS ! "" SCHEDULED AUTOS NON-OWNED AUTOS M 0, ctrt OF 73TRS083257 L Amais ATTORMY WW1 12 7/2017 M113 COMBINED SINGLE LIMIT $ 1,000,000 BODILY INJURY (Per person) S BODILY INJURY (Per accident) S. PROPERTY DAMAGE (Par accident) $ S X UMBRELLA Liike OCCUR 5X4 - 07 -43-18 12/7/2017 12/7/2018 EACH OCCURRENCE $ 1,000,000 --- EXCESS LIAB CLAIMS-MADE AGGREGATE 5 1,000,000 DED 1 1 RETENTIONS WORKERS COMPENSATION ANY PROPRIETOR/PARTNER/EXECUTIVE r .11 OFFICER/MEMBER EXCLUDED? (Mandatory In NH) If yes describe under DESCRIPTION OF OPERATIONS below N / A AND EMPLOYERS' UABIUTY Y i PER 0TH- ER _SITATLIIE E L EACH ACCIDENT S E L. DISEASE - EA EMPLOYEE 5 EL. DISEASE-POLICY LIMIT $ A GARAGEKEEPERS COVERAGE B ON-HOOK COVERAGE 5X4-0'7-43 -18 73TRS083257 12/7/2017 12/7/2018 12/7/2017 12/7/2018 LIMIT 1,000,000 LIMIT 100,000 DESCRIPTION OF OPERATIONS / LO-CATIONS7VERICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is requiredl City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers are named as additional insured with respect to general liability per form BP04480713 attached. Umbrella underlines General Liability. CERTIFICATE HOLDER IOno@hbpd.org City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Eric Moore/KATHY ACORD 25(2014/01) INS0251201401) © 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD HB -157-Item 9. - 63 POLICY NUMBER: 5X4-07-43-18 BUSINESSOWNERS BP 04 48 07 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: BUSINESSOVVNERS COVERAGE FORM SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): City of Huntington Beach, its officers, elected or appointed officials, employees, agents & volunteers Information required to complete this Schedule, if not shown above ; will be shown in the Declarations. Section II — Liability is amended as follows: A. The following is added to Paragraph C. Who Is An Insured: 3. Any person(s) or organization(s) shown in the Schedule is also an additional insured, but only with respect to liability for 'bodily injury", "property damage or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf in the performance of your ongoing operations or in connection with your premises owned by or rented to you. However: a. The insurance afforded to such additional insured only applies to the extent permitted by law; and b. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. B. With respect to the insurance afforded to these additional insureds, the following is added to Paragraph D. Liability And Medical Expenses Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits Of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits Of Insurance shown in the Declarations. BP 04 48 07 13 0 Insurance Services Office, Inc 2012 Pagel of 1 HB -158-Item 9. - 64 Total Estimated Annual Iremium: $ 176,319 Minimum Premium: $ Audit Period: MONTHLY Issued At: Pleasanton, CA Date: 05-30-17 Countersigned by WC 000001 A (Ed. 9-06) C.opyrIgte1987 National Council on Compensation insurance riaittED Exhibit 9 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY - INFORMATION PAGE INSURER: INSURANCE COMPANY OF THE WEST FTEM11. NAMED INSURED AND MAILING ADDRESS: MANDIC MOTORS 18881 GOTHARD ST HUNTINGTON BEACH CA 92648 POLICY NO: WPL 5026542 03 RENEWAL OF: WSD 5026542 02 NCC1Company No: 19593 Account No RISK ID #0178450 NJ. Taxpayer Identiticaton No PRODUCER NAME AND ADDRESS: MORRIS & GARR/TANO INSURANCE P.O. BOX 1189 SAN LUIS OBISPO CA 93406 PRODUCER NO.: 0002883 LEGAL ENTITY: CORPORATION OTHER WORKPLACES NOT SHOWN ABOVE: (See Workers Compensation Classification Schedule) ITEM2 POLICY PERIOD: From: 06-01-2017 To: 06-01-2018 Effective 12:01 A.M. Standard Time at the Insureds mailing address. rrEm 3. COVERAGE: A. Workers Compensation Insurance: Part One of the policy applies to the Workers Compensation Law of the states listed here: CA B. Employers Liability Insurance: Part Two of the policy applies to work in each state listed in Item 3.A. The limits of liability under Part Two are: Is Bodily Injury by Accident: Bpdily Injury by Disease: Bodily Injury by Disease: 1,000 ,000 1,000,000 1,000 ,0 00 each accident policy limit each employee C. Other States Insurance: Part Three of the policy applies to the states, if any, listed here: AL AK AZ AR CO CT DE DC FL GA HI ID IL IN LA KS KY LA ME MD MA MI MN MS MO MT NE NV NA NJ NM NY NC OK OR PA RI SC SD TN TX UT VT VA WV WI D. This Policy includes these Endorsements and Schedules: See Schedule of Forms and Endorsements. , ITEM 4. PREMIUM: The premium for this Policy will be determined by our Manuals of Rules, Classifications, Rates and Rating Plans. All information required on the Workers Compensation Classification Schedule is subject to verification and change by audit. HB -159-Item 9. - 65 r EMC INSURANCE EMPLOYERS MUTUAL CASUALTY COMPANY COMMERCIAL UMBRELLA DECLARATIONS Policy Period: From 12/07/17 to 12/07/18 Policy Number * 5 J 4 - 0 7 - 4 3---18 * NAMED INSURED PRODUCER MANDIC MOTORS INC THE EMPIRE COMPANY (A CORPORATION) PO BOX 5400 18881 GOTHARD ST RANCHO CUCAMONGA CA 91729-5400 HUNTINGTON BEACH CA 92648-1524 AGENT: AJ 0607 DIRECT BILL AGENT PHONE: (909)476-0600 CLAIM REPORTING: (888)362-2255 SERVICING CARRIER: (800)432-8422 THIS POLICY RENEWAL IS OFFERED CONTINGENT UPON THE RECEIPT OF PAYMENT WHICH IS DUE ON 12/07/17. Insured is CORPORATION Business Desc: AUTO REPAIR GARAGE LIMITS OF INSURANCE Each Occurrence Limit (Liability Coverage) $ 1,000,000 Personal & Advertising Injury Limit $ 1,000,000 (Any one person or organization) Aggregate Limit (Liability Coverage) $ 1,000,000 (except with respect to "covered autos") PREMIUM NOT SUBJECT TO AUDIT $ 354.00 A $100 MINIMUM POLICY PREMIUM APPLIES IF POLICY IS CANCELLED AFTER THE EFFECTIVE DATE. Forms Applicable: CU0001(04/13), CU0004(05/09), CU0191(05/17)*, CU0223(09/12), CU2123(02/02), CU2127(12/04), CU2130(01/15), CU2136(01/15), CU2171(06/15)*, CU2186(05/14), CU2423(12/07), CU2429(04/13), CU7001A(11/15)*, CU7272(08/06), CU7276(07/14), CU7293(08/06), CU7299(08/06), CU7404.1(10/08), IL7130A(04/01)*, IL7131A(04/01)*, IL7137(10/05), 1L8383.2A(01/15), 1L8384A(01/08), 1L8745(03/17)* REFER TO PRIOR DISTRIBUTION(S) FOR ANY FORMS NOT ATTACHED Date of Issue 09/11/17 BPP FORM CU7000A ED. 01-07 BPP 09/08/17 006 KF 5J40743 1801 HB -160-Item 9. - 66 A EillIC iNSURANCE EMPLOYERS MUTUAL CASUALTY COMPANY POLICY NUMBER: 5W4-07-43---18 MANDIC MOTORS INC EFF DATE: 12/07/17 EXP DATE: 12/07/18 BUSINESSOWNERS POLICY DECLARATIONS ENDORSEMENT SCHEDULE EDITION FORM DATE DESCRIPTION/ADDITIONAL INFORMATION PREMIUM BRO003 *BP0155 BP0417 BP0430 BP0448 BP0523 BP0542 BP0577 BP1203 BP1504 BP7001.2A BP7001.3A *BP7001A BP7003 BP7135 BP7172 BP7197 BP7200 BP7340 *BP7341 *IL7004 IL7028 *IL7130A *IL7131A 11,7137 IL7338 07-13 BUSINESSOWNERS COVERAGE FORM 05-17 CALIFORNIA CHANGES 01-10 EMPLOYMENT RELATED PRACTICES EXCL 07-13 PROTECTIVE SAFEGUARDS 07-13 AI-DESIGNATED PERSON OR ORGANIZATION NAME OF PERSON(S) OR ORGANIZATION(S) SUMMERLANE MAINT. ASSOC. C/O PROGRESSIVE COMMUNITY MGMT 27405 PUERTA REAL STE 300 MISSION VIEJO, CA 92691-6372 NAME OF PERSON(S) OR ORGANIZATION(S) AUTOMOBILE CLUB OF SOUTHERN CALIFORNIA, ITS SUBSIDIARIES & AFFILIATES PO BOX 12010-AA HEMET, CA 92546-8010 NAME OF PERSON(S) OR ORGANIZATION(S) CITY OF HUNTINGTON BEACH ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES 2000 MAIN ST HUNTINGTON BEACH, CA 92648-2702 01-15 CAP/LOSSES/CERTIFD ACTS OF TERRORISM 01-15 EXCL OF PUNITIVE DAMAGES FOR TERRORI 01-06 FUNGI OR BACTERIA EXCLUSION (LIAB) 01-10 LOSS PAYABLE PROVISIONS 05-14 EXCL-ACCESS/DISCLOSURE OF CONFIDENT 10-05 BOP SCHEDULE-MISC PROP POL LEVEL COV 01-10 BOP SCHEDULE-SEC II-LTAB AND MED PAY 01-10 BOP AUTOMATED SCHEDULE 07-13 BOP QUICK REFERENCE 08-08 LEAD EXCLUSION 08-08 CONTINUOUS/PROGRESSIVE INJURY EXCLUS 08-08 EQUIPMENT BREAKDOWN ENDORSEMENT 07-13 EXPANDED BUSINESSOWNERS EXT END 08-15 AUTO SERVICE INDUSTRY EXTENSION 07-14 GARAGEKEEPERS PLUS ENDORSMENT 09-16 MUTUAL POLICY PROVISIONS 05-15 ASBESTOS EXCLUSION 04-01 NAMED INSURED ENDORSEMENT 04-01 COMM'L POLICY ENDORSEMENT SCHEDULE 10-05 EXCL MIXED DUST PNEUMOCONIOSIS 05-15 NOTICE OF CANC PROV BY US DESIGNATED NAME OF ENTITY: UNITED FARM FAMILY LIFE INSURANCE COMPANY C/O THE ALISON COMPANY DATE OF ISSUE: 09/11/17 FORM: IL7131A (ED. 04-01) (CONTINUED) 006 KF 5W40743 1801 HB -161-Item 9. - 67 /AJOiC 511161/te APae rY. CERTIFICATE OF INSURANCE 141313 Motor Carriers Of Property SURPLUS LINE BROKER INSURER (INSURANCE CONPANY NAME, AND ADDRESS NA(C 0 NATIONAL LIABILITY & FIRE 20052 INSURANCE COMPANY 1314 DOUGLAS STREET, SUITE 1400 OMAHA, NEBRASKA 68102 OTHER 0 Status: Ei Licensed to write insurance in the State of California (Admitted Insurer) O Non-admitted Insurer subject to Section 1763 of the California Insurance Code. SURPI (1...*: I INF BROKER NAME O Charitable Risk Pool El Risk Retention Group INSURED (MOTOR CARRIER) NAME AND ADDRESS MANDIC MOTORS INC 18881 GOTHARD STREET HUNTINGTON BEACH, CA 92648 TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MWDONY) Filed with the: California Department of Motor Vehicles Registration Operations Division P. O. Box 932370 MS G875 Sacramento, CA 94232-3700 (916) 657-8153 LIMITS PRIMARY LIABILITY El Coverage below statutory minimum limits. 0 Coverage equal to or exceeding statutory minimum limits. COMBINED SINGLE LIMIT sl,000,000 . 73TRS083257 12/07/2017 sopri_v INJURY OR DEATH .(ONE PERSON) 1300ILY INJURY OR DEATH IlvILORE THAN ONE PERSON) PROPERTY DAMAGE EXCESS LIABILITY CI Coverage between primary coverage and statutory minimum krnits. C1 Coverage provided at or above statutory rrvnimum limits. WORKERS' COMPENSATION COMBINED SINGLE LIMIT ,n excess QT $ BODILY INJURY .LONE PERSON) BODILY INJURY OR DEATH MORE THAN ONE Pt RS ON ) in excess of $ In excess of $ PROPERTY DAMAGE VVC Strittdory Units in excess ot $ Insurer certifies to each of the following: • The motor carrier of property (insured) identified herein is covered by an insurance policy providing bodily injury or death liability, property damage liability insurance, or workers compensation insurance within the coverage limits identified above as required by California Vehicle Code (CVC) Sections 34630, 34631.5, and 34640, and by Part 387 of Title 49 of the Code of Federal Regulations. • This insurance policy covers all vehicles used in conducting the service performed by the insured for which a motor carrier permit is required whether or not said vehicle is listed in the insurance policy. • A fully executed endorsement, on a form authorized by the Department of Motor Vehicles (DMV), is attached to the referenced policy to conform to the requirements of the Motor Carriers of Property Permit Act, CVC Section 34600 and following, and the rules and regulations of the DMV. (This provision does not apply to Workers' Compensation Insurance) • For the purposes of Charitable Risk Pool coverage, this policy meets the requirements of the CVC Section 34631 (d). • For the purposes of Risk Retention Group coverage, this policy meets the requirements of the Risk Retention Act of 1991, California Insurance Code Section 125 and folloMng, and is authorized to do business in California. Insurer agrees to each of the following: • This Certificate of Insurance shall not be canceled on less than thirty (30) days notice from the insurer to the DMV and written on a Notice of Cancellation form authorized by the DMV, and that the thirty (30) day period commences to run from the date the Notice of Cancellation form was actually received at the office of the California Department of Motor Vehicles, Registration Operations Division, in Sacramento, California. • A duplicate original of the referenced policy, a DMV authorized endorsement, and all other related endorsements and documentation, shall be furnished to DMV upon request. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PRINTED NAME OF INSURERS AJTHORUED REPRESENTATIVE TOM YOUNG SIGNATURE CF INSURERS AUTHORI2BD REPRESENTATIVE TELEPHONE NUMBER (402) 916-3000 EXECUTED AT (CITY AND STATE) OMAHA, NEBRASKA EMAIL ADDRESS DATE 12/8/2017 MC 55 NI (REV 1212012) UH HB -162-Item 9. - 68 Exhibit 4 Department of Building and Safety 2000 Main Street Huntington Beach, CA 92648 Phone: (714) 536-5241 Fax: (714) 374-1647 CERTIFICATE OF OCCUPANCY Bob Mandic Cert. Number 002001-009977 Mandic Motors Inc. Date Printed 06/30/2005 18881 Gothard St Huntington Beach CA 92648 Address: Permit Number: Business Name: Business Type: Current Use: 18881 GOTHARD B2001-080015 MANDIC MOTORS TOWING AND STORAGE Auto repair, towing and storage Issue Date: TCof0 Issue Date: TCof0 Expiration: Approved Sq Ft.: # of Stories: 06/30/2005 03/18/2005 06/17/2005 8,179.00 2 Occupant Groups: Description: Area: Occupant Load: a OFFICE 4107 41 S-3 PUBLIC GAR 4072 20 Conditions of Approval: Contacts: Contact Type: Name: Bob Mandic Phone: (714) 536-6585 Property Owner Address; 18881 Gothard St. Cell: (714) 272-8488 City / State: Huntington Beach CA Fax: ( ) - Zip: 92648 Pager: ( ) Contact Type: Name: Bob Mandl.: Phone: (714) 536-6585 Business Owner Address: 18881 Gothard St Cell: ) - City / State: Huntington Beach CA Fax: ( ) - Zip: 92648 Pager: ( ) - HB -163-Item 9. - 69 City of Huntington Beach Fire Department 2000 Main Street Huntington Beach. California 92648 Phone (714) 536-5411 Fax (714) 374-1551 FIRE DEPARTMENT PERMIT Exhibit 5 MANDIC MOTORS INC Effective Date: 11/23/2013 MAN DIC MOTORS INC Valid until revoked 18881 GOTHARD ST HLNT1NGTON BEACH, CA 92648 OFFC 714-536-6585 PERMITTEE: ROBERT P MANDIC LOCATION: 18881 GOTHARD OCCUPANCY ID: 0000007588 DISTRICT: 3614 OCCUPANCY TYPE: S4 AppendiN Chapter 1. Section 105.-o1the California Fire Code (CFC) requires that a permit he obtained from the fire code official to authorize any operations or conditions that are identified in Section 105,6 or 105.7. This permit shall constitute permission to maintain, store or handle materials: or to conduct processes which produce conditions hazardous to life or property or to install equipment utilized in connection with such activities: or to install or modify any fire protection system or equipment or any other construction, equipment installation or modification in accordance w ith the provisions of the CFC where a permit is required. Such permission shall not be construed as authority to violate. cancel or set aside any of the provisions of the CFC or other applicable regulations or laws of thejurisdiction. rhc tire code official is 'authorized to revoke a permit issued under the provision of the CFC NV hen it is found b) inspection or otherwise that there has been a false statement or misrepresentation as to the material facts in the application or construction documents on which the permit or approval was based. THIS PERMIT MAY BE REVOKED FOR REASONS INCLUDING, BUT NOT LIMITED TO ANY ONE OF THE FOLLOWING: I. Conditions and limitations set forth in the permit have been violated. 2. The permit is used for a condition or actiN ity other than that listed in the permit. 3. The permitee failed. refused or neglected to comply with orders or notices dui) served in accordance with the provisions of the CFC within the time provided therein. 4. The permit was issued in error or in violation of an ordinance. regulation or the HEIFC. Issued permits shall be kept on the premises designated therein at all times and shall be readily available for inspection by the fire code Pennits are not transferrable and any change in occupancy. operation, tenancy or ownership shall require that a new permit be issued. I 05.6.39 Repair Garages & Motor Fuel-Dispensing Facilities ‘1 ISSUED BY: Huntington Beach Fire Department HB -164-Item 9. - 70 11/01/2017 Valid From: CM: 0141313 Valid Through: 1 Pmt Date: 1 Account At: 74593 Sequence #: 0045 Office #: 15-t Tech ID: 1-t.s; For Hire Full Year Corporation Amt Paid: 51.283.00 !!!IMPORTANT REMLNDERS!!! it In /017 Z.JFORNIA STATE TRANSPORTATION AGENCY D8PARTMENT OF MOTOR VEHICLES Registration Operations Division MS H875 P.O. BOX 932370 Sacramento, CA. 94232-3700 916) 657-8153 10/11/2017 Exhibit 6 MAND1C MOTORS INC 18881 GOTHARD ST HUNTINGTON BEACH. CA 92648 ?go MIF 01P*RIX471T OP MMUS' A Public Service Agency MOTOR CARRIER PERMIT 10/31/2018 DEPARTMENT OF MOTOR VEHICLES Registration Operations Division P.O. BOX 932370 Sacramento. CA. 94232-3700 MAND1C MOTORS INC 18881 GOTHARD ST HUNTINGTON BEACH, CA 92648 The carrier named on this permit. having made written application to the Department of Motor Vehicles for a permit to operate as a motor carrier of property as defined in vehicle code section 34601, and basing met the requirements and paid the appropriate fees, is granted a permit of the following classification: 1. Your permit will expire at midnight on the 'Valid Through' date. If you do not receive a renewal notice 30 days prior to the expiration date. please submit an original application and check the "Renewe' ho.. /. Your insurance must remain valid through the term of your permit or a suspension action could occur. 3. Changes to your fleet are not required to be reported until your renewal. 4. Changes to your business entity may require a new CAP and application for another Motor Carrier Permit 5. If you decide to no longer operate as a motor carrier of property, you must submit a 'Voluntary Withdrawal form. 6. For changes to the address, business name, officers, or authorized representative's name, please complete the 'Notice of Change' form. Changes during your renewal period may be submitted on your renewal application. 7. You may download forms from the Internet at www.dmv.ca.gov or receive further information by calling: (916) 657-8153. California Relay Telephone Service for the Deaf or Hard of Hearing from TDD Phones: 1-800-735-2929; from Voice Phones: 1-800-735-2922 MC 2100 M IREV. 0 1 ,"2011, A Public Service Agency HB -165-Item 9. - 71 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION Department of Community Development Code Enforcement Division TO: Sergeant Julio Mendez, Traffic Bureau FROM: Rich Massi, Code Enforcement Supervisor DATE: March 14, 2018 SUBJECT: Inspection of Police Directed Towing and Storage Service Locations. The Huntington Beach Police Department requested that Code Enforcement provide an on-site inspection of the two (2) tow companies that have submitted applications for the contract schedule to be effective April 1, 2018. Code Enforcement's role was to determine if any zoning violations exist at the two locations being utilized for the storage and impound of vehicles. Our findings are as follows: 1. On March 8, 2018 at 10:00 a.m. an inspection of Mandic Motors (18881 Gothard St.) was conducted. The inspection revealed no structural or site changes since the 2012 site inspection. Further, it was found that this location appears to be in full compliance with all applicable zoning and municipal codes. 2. On March 14, 2018 at 10: 30 a.m. an inspection of Best Towing Service (7472 Warner Ave.) was conducted. The inspection revealed no structural or site changes since the 2012 site inspection. Further, it was found that this location appears to be in full compliance with all applicable zoning and municipal codes. If you have any questions or need further clarification, please contact me with the information provided. Rich Massi #1008 Code Enforcement Supervisor City of Huntington Beach 714-375-5155 rmassi@surfcity-hb.org Cc: Mike Vigliotta, Chief Asst. City Attorney Kenton Ferrin, Police Lieutenant Jane James, Interim Director of Community Development HB -166-Item 9. - 72 tm, CITY OF HUNTINGTONI BEACH 2000 MAIN STREET , P.O. BOX 70 POLICE DEPARTMENT ROBERT HANDY Chief of Police CALIFORNIA 92648 Tel (714) 960-8811 March 22, 2018 Mandic Motors, Inc. Robert Mandic 18881 Gothard Street Huntington Beach, CA 92648 On April 1 st , 2018, Mandic Motors, Inc., was awarded a contract, through a competitive process, to become Huntington Beach's "Official Police Tow." You and one other company will be called upon by the Huntington Beach Police Department to tow vehicles from accidents or other incidents and provide vehicle storage, when officers request a tow. This selection process was conducted, as required by the Huntington Beach Municipal Code Chapter 5.66, providing the rules for all persons and businesses providing nonconsensual police-directed vehicle towing and storage service directed by the Huntington Beach Police Department in the City. This letter will serve as your permission to refer to Mandic Motors, Inc., as the Huntington Beach Police Department's "Official Police Tow" on their property, as per our contract. Sincerely, Robert andy Chief of Police RH:ico HB -167-Item 9. - 73 Business Name/Service Address MANDIC MOTORS INC 18881 GOTHARD HUNTINGTON BEACH License Type Professional / Other Services Owner/Corporation MANDIC MOTORS INC License Number A001920 Effective Date 07/01/2017 Expiration Date 06/3012018 L.ITY OF HUNTINGTON BEACH BUSINESS LICENSE 1 P.O. Box 190 Huntington Beach, CA 92648-0711 (714) 636-5267 Exhibit 3 CITY OF HUNTINGTON BEACH BUSINESS LICENSE CERTIFICATE Lori Ann Farrell Harrison Chief Financial Officer HNC0703A AUTO ALL FOR AADC 926 7000000278 00.0001.0278 278/1 fv1ANDIC MOTORS INC 18881 GOTHARD STREET HUNTINGTON BEACH CA 92648-1524 Dear Business Owner. Thank you for your payment. Attached is your City of Huntington Beach Business License, Please note that approximately 3 weeks prior to the license expiration date, you will be mailed a courtesy renewal notice for the coming year. If for any reason your renewal notice does not arrive, you are still responsible to renew and pay your business license amount prior to the expiration date. Late penalties will accrue if this payment is not received by the expiration date. Please post the business license in a conspicuous place. If you do not transact business from a fixed location within the city, you must carry this license with you at all times. Your business vehicle should also carry this license, and the license plate number of the vehicle(s), if applicable, should match the one on the business license. Please notify Business License if there are any changes of ownership, address. business name. business vehicle, or type of business conducted. Additionally, please notify the city if you discontinue your business. There are many resources available to our licensed business people. We have listed a few that might be of interest and assistance to you. City of Huntington Beach Business Development - 714-536-5582 Huntington Beach Chamber of Commerce - 714-536-8888 Huntington Beach SCORE (Service Corps of Retired Executives) - 714-550-7369 County of Orange Fictitious Business Name Information - 714-834-2889 California State Board of Equalization (seller's permit information) - 949-440-3473 (Irvine Office) If you have any questions, please call a Business License representative at 714-536-5267. FOLD OR DETACH HERE FOR DISPLAY City Of kuntington Beach Business License Amount Paid $ 692.25 THIS LICENSE IS ONLY FOR THE BUSINESS AND TYPE SHOWN. IT IS FOR THE PERSON TO WHOM ISSUED AND IS NON-TRANSFERABLE. RENEWAL IS DUE ON OR BEFORE THE EXPIRATION DATE. POST IN PUBLIC VIEW SIC 7349 HB -168-Item 9. - 74 INSURERS AFFORDING COVERAGE NAIC # INSURER A. AMERICAN GUARANTEE & LIABILITY 26247 I INSURER EI ZURICH AMERICAN INSURANCE CO 16535 A.L1.. "44SSUURRIIIVIT 112177.NNYY ((If "THISS JIT}E3T 27847 BESTOO INSURER 0: INSURER E: ACORD„, CERTIFICATE OF LIABILITY INSURANCE f11/1(1/2,0114 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. DAT E IMMDON V Y Y PRODUCER Centerpointe Insurance Service California License #0735759 807 - B Camarillo Springs Road Camarillo, CA 93012-9464 INSURED BEST TOWING & TRANSPORTATION SERVICE, LLC 7472 WARNER AVENUE HUNTINGTON BEACH, CA 92647 COVERAGES INSR LTR THE ANY MAY POLICIES, POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH TI-US CERTIFICATE MAY BE ISSUED OR PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ADO'L MEW TYPE Of INSURANCE POUCY NUMBER POLICY EFFECTIVE TIDUCY EXPIRATION DATEIMM/DDNYI _DATEIMPAIDDIYY) UNITS A _ GENERAL UABILTTY COMMERCIAL GENERAL LIABILITY CP01641012 04/01/2018 04/01/2019 EACH OCCURRENCE $ 1,000,000 X DAM AGE TO RENTED PREM1S IE$ I4GLI1E1C-01 $ 100,000 _ .. _ CLA1MSMADE X OCCUR MED EXP (Any one Parson/ $ 5,000 PERSONAL & ADV INJURY ._ I 1,000,000 GENERAL AGGREGATE 0 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY n JPERCD -T LOC PRODUCTS - COMP/OP AGO $ 2,000,000 B --, AUTOMOBILE LIABIUTY ANY AUTO SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS ALL OWNED AUTOS CP01641012 APPROVED OW C 04/01/2010 AS • FORM M. e. GIATAS 04/01/2019 ks.kb COMBINED SINGLE LIMIT (Ea incident, $ 1,000,000 ,-- BODILY INJURY 1Per person) $ X , X r--- BODILY INJURY (Per scoclen0 4 X PROPERTY DAMAGE [Per sccsient 0 GARAGE UABIUTY AUTO _1ANY C AMMO CITY OF iti , 1 AUTO ONLY - EA ACCIDENT OTHER THAN EA ACC $ Au TO ONLY: AGO $ EXCESS/UMBRELLA UABILITY — E____ OCCUR I 1 CLAIMSMADE __I EACH OCCURRENCE 4 — AGGREGATE I DEDUCTIBLE RETENTION $ —1 $ $ C WORKERSCOMPENSATION AND EMPLOYFRS UABIUTY ANY PROPRiETORPARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? if yes. awn rye under SPECIAL PROVISIONS below "IVES 5006145 Cri 04/01/2018 04/01/2019 n 04/01/2018104/01/20191PER , X PoUTIP -s i FRI - E.L.LACH ACCIDENT 0 1,000,000 E.L. DISEASE- EA EMPLOYEE 0 1,000,000 El. DISEASE - POLICY LIMIT VER.SCHED. DEDUCT. PER VIE. $ 1,000,000 $1,000,000 $1000 A OTHER i C901641012 ON HOOK DESCRIPTION OF OPERATIONS / LOCATIONS/ VEHICLES ! EXCLUSIONS ADDED BY ENDORSEMENT i SPECIAL PROVISIONS THE CITY OF HUNTINGTON BEACH IS NAMED AS ADDITIONAL INSURED (SEE ATTACHED ADDITIONAL WORDINGS) ; GARAGEKEEPERS DIRECT PRIMARY -$1,000,000 LIMIT-LOCATION: 7452-7472 WARNER AVENUE, HUNTINGTON BEACH, CA 94267; UNINSURED MOTORISTS BODILY INJURY- $60,000 LIMIT; MOTOR TRUCK CARGO $100,000 LIMIT PER VEHICLE w/$1,000 DID; SEE ATTACHED 101 ADDITIONAL REMARKS FORM CERTIFICATE HOLDER CANCELLATION CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS EMPLOYEES, AGENTS & VOLUNTEERS 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBUGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR RERFIESBYTArvES AUTHORIZED REPREpercrkTlyE ' \ a.......0." E . lik/...,,. \ CAU ACORD 25 (2001/08) ACORD CORPORATION 1988 HB -169-Item 9. - 75 ACC:IRD AGENCY CUSTOMER ID: BESTOO LOC # ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AsseCY Centerpointe Insurance Services, Ltd. NAMED iNSURED BEST TOWING & TRANSPORTATION SERVICE LLC 7472 WARNER AVENUE HUNTINGTON BEACH, CA 92647 POLICY NUMBER CP01641012/CP01641012/WVE5006145 07 CARR[NR AMERICAN GUARANTEE & LIABILITY INS/ZURICH INSURANCE COi INSURANCE COMPANY OF EFIL WM' ' NAIC CODE 2424-ivissjsmat ., EFFECTIVE Okra: 04/01/2018 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance For compliance reasons, the attached document includes: 1. This certificate is issued as a matter of Information only and confers no rights upon the certificate holder. This certificate does not affirmatively or negatively amend, extend, or alter the coverage, terms, exclusions, conditions, or other provisions afforded by the policies referenced herein. This certificate of insurance does not constitute a contract between the issuing insurer(s), authorized representative or producer and the certificate holder. 2. Should any of the above described policies be canceled before the expiration date thereof, notice will be delivered in accordance with the policy provisions. A) (ARAGEKEEPERS DIRECT PRIMARY LIABILITY - $1,000,000 - LOCATION: 7152-7472 WARNER AVENUE, HUNTINGTON REACH, CA: WITH SLOW DEDUCTIBLE A) MOTOR TRUCK CARGO - 5100,900 LIMIT PER VEHICLE W/ 51,000 DEDUCTIBLE; 5500,080 LIMIT PER OCCURRENCE W/ $1,000 DEDUCTIBLE Additio•al insured, includes waiver of subrop.fition. The City of Huntington Beach. its officers, elected or appointed officials. employees, agents, gad volunteers art to bc covered as additional lisured's by separate attached endorsement(s) as respects liability arising out of action performed by or on behalf of the contractor, products and corn pitted operations of the contractor, premises owned, occupied or axed by the contractor, or automobiles ins.riesi, leased or borrowed by the contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City. ACORD 101 (2008101) 2008 A CORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD HB -170-Item 9. - 76 CL 690 110-93) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CG 20 10 10 93 ADDITIONAL INSURED-OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART This endorsement chan s the policy effective on the ince • Von date of the olicy unless another date is indicated below. Endorsement effective Polioy No. 12:01 A.M. standard time CP01641012 Named Insured BesT TOWING & TRANSPORTATION (Authorized flepregientetive SCHEDULE I CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED OR I Name of Person or Organization: -- APPOINTED OFFICIALS, EMPLOYEES, AGENTs & VOLUNTEERS 2000 MAIN STREET] _ HUNTINGTON BEACH, CA 92648 I (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of your ongoing operations performed for that insured. THE CITY OP HUNTINGTON BEACH IS NAMED AA ADDITIONAL INSURED (SEE ATTACHED ADDITIONAL WORDINGS) GARAGEKESPERS DIRECT PRIMARY -$1,000,000 LIMIT-LOCATION: 7452-7472 WARNER AVENUE, MINT1NOTOR BE CA 94267, UNINSURED MOTORISTS BODILY INJURY- $60,000 LT; MOTOR TRUCK CARGO $100,000 LIMIT P VEHICLE W/$1,000 DZD; SIR ATTACHED 101 ADDITIONAL RIMANKS FORM CL 890(10-931 CL 20 10 10 93 Copyright. Insurance Services Office, Inc., 1992 Page 1 of 1 HB -171-Item 9. - 77 AGO/RE!,, CERTIFICATE OF LIABILITY INSURANCE ORTE(s5hoOrffrn . 111/2Apt117 PROOKAA Centerpointo Insuramcs Service California Lioanse #0735759 807 - B Camarillo Springs Road Camarillo, CA 93012-9464 13 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER DNS CERTIFICATE DOES NOT AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NUOCIS ""t 0 BEST TOWING & TRANSPORTaTION SERVICE U. 7472 WARNER AVENUE IIDEPMPTITON BEACH , CA 92647 BEST 00 mnoREPA INSURANCE COMPANY OF TEE WEST27547 INSURER 0 INEultilli C iteUleR V WRYER e - tHE ROL:CIES OF riSuRANCE Ltsito RELOw iiAvE SEEN ISSUED TOME INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTAIMSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OMER DOCUMENT MTh RESPECT TO MICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAJN, THE INSURANCE AFFOROED BY THE POLICIES DESCRIBED KERMA is SUBJECT' TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICES- AGGREGATE LIMITS SHOM MAY RAVE BEEN REDUCEDBY PAID CLARIS. — Klit-Atih_ Liaising MRS OrmiaLitatet. POLICY NUMBER fasigwitagir tiucytioupocciExPiiRarr UNITE GENERAL umiure OCAUSEROAL GOARISAL OAIRU -1, 001.'4154(AM r—i cccuq FArd, orzuRPErez s .1 GAISAGIETDREarec LITICIM§_g las =coma% I LIEDEYP (Any MI WW1 I PE/1504AL &AM WAY i &Per/AL AGGREGA-E I IL:El Ift. AGEREGATE uMIT APPLIES PER POUGY 71,711g 7 LOC PRcou:Ts camProP AGO S 1 n auressMasUANIUTV .--.1 ; ANYAUTO ALL OARED AUrGe • SCHEDULED AUTOS '---1 MECO AUTOS ..— . soo‘oviNEDAuTOS -. C,C5H !MED SINGLE LORI a acoclent1 5 BCCILY ENJURY (VW 50.1001 5 BODO' !NARY (Fisica/NV S PRCPER7( DAMAGE Hear-Qom s GARAGE: LASEUTY H ANY AUTO , AUTO OINLY EA Aocsoarr I 0 INLR THAN IA ACC s Auroorar AGG EacEssweNELLa Leasure 7 OCCUR Ti CLAIMS +MOE Ti OfcGuCtI0L6. ThETENTior. s - L.Aor-i OCOARSIENCE I AGGREGATE S I I I 1 A W0RNERSC0aPt ssanos Aso EIPPLOYERS' JAIRLITY Arer pRoPp.ETOPIPA RTKER'Es EC Jr! v .; Of IJDERN .MIE.R ExC-LIOU,: /61=1 pRovints _ ma S90.514S 06 04/01/2017 . 04/01 1 2018 -E rsoWCRIF•Taurrs riTEr E.L EACH ACCIDENT s 1,000,000 EL [ASEASE • EA EIAPLOYEA4 1.000 Or 00 a_ . EL omEAse • Pcucy war s 1,000,000 , OTHER asscalpnos OF OPERA TIMIS r LCCATICAS NVIECLEI ,i EXGL MOM ADDED RV Bleoptsagare r mew& PRONISIOss TEE ENTITY NAMED BELOW IS ADDED AS ADDITIONAL INSURED, AND INCLUDES WAIVER OF SUBROGATION, ACORD 101 2008/01) ADDITIONAL REMARKS FORM ATTACHED. CERTIFICATE HOLDER CANCELLATION THE CITY OF HUNTINGTON BEACH ATTN: RISK MANAGEMENT 2000 MAIN STREET HUNTINGTON BRACH, CA 92648 SKOLILD AN, Of TOR ABOVE DISPOSED POLICIES U8CANILL10 semi THE ExEwald DATE THEREOF. THE issuitioiirs.JREa WILL ENDEAVOR TO MAP. OATS WfuTIIN 140711C/ /1) THE CERTINCATE HOUSER NAKED TO THE LEFT, SLIT PAR.DRE TO DO $O SKAS.L SWORE MO caLIGRitow OR LLAIILITY Dr Amy MID LIMN THE isSiMin. ITS AGENTS OR REffREEENTATNES. AuTtionIZZa REP ."-pt.r% CAU ACORD CORPORATION 198E ACORD25(2001/t)8] HB -172-Item 9. - 78 The carrier named on this permit. having made written application to the Department of Motor Vehicles for a permit to operate as a motor carrier of property: as defined in vehicle code section 34601. and having met the requirements and paid the appropriate fees, is granted a permit of the following classification: Valid From: 10/262017 Valid 1 Through: 0930/2018 CA#: 0337002 CALIFORNIA STATE TRANSPORTAT[CN AGENCY DEPARTMENT OF MOTOR VEHICLES Registration Operations Division MS I-1875 P.O. BOX 932370 Sacramento, CA. 94232-3700 (916, 657-8153 10272017 BEST TOWING AND TRANSPORTATION SERVICES LLC 7472 WARNER AVE HUNTINGTON BEACH, CA 92647 P"Rif rs,ovorol NC,. 4.610 A Pubbc Senoce Agency MOTOR CARRIER PERMIT DEPARTMENT OF MOTOR VEHICLES Registration Operations Division P.() rinx 932370 Sacramento. CA. 94232-3700 BEST TOWING AND TRANSPORTATION SERVICES LLC 7472 WARNER AVE HUNTINGTON BEACH, CA 92647 Pmt Date: III 26 2t117 Account #: 464,14)2 I Office #: 154 Tech ID: CD For Hire Full Year Limited Liability Company Sequence : 10 1 0 Amt Paid: 5 1 .718 -01) !!!IMPORTANT REMINDERS!!! I . Your permit will expire at midnight on the 'Valid Through' date. If you du not receixe a renewal notice 30 days prior to the expiration date, please submit an original application and check the "Renewal" box. N'our insurance must remain ‘alid through the term of your permit or a suspension action could occur. 3. Changes to your fleet are not required to he reported until your renewal. 4. Changes to your business emir' may require a new CAI* and application for another Motor Carrier Permit. 5. If you decide to no longer operate as a motor carrier of property, you must submit a 'Voluntary Withdrawal' form. 6. For changes to the address, business name, officers, or authorized representative's name, please complete the 'Notice of Change form. Changes during your renewal period may be submitted on your renewal application. 7. You may download forms from the Internet at AL Ve Alm\ .ca.gov or recei‘ e further information by calling: 1916) 657-8153. California Relay Telephone Service for the Deaf or Hard of Hearing from TDD Phones: 1-800-735-2929: from Voice Phones: 1-800-735-2922 M REV C' 2C't A Public Service Agency HB -173-Item 9. - 79 Effective Date 09/01/2017 Expiration Date 08131/2018 CITY OF HUNTINGTON BEACH BUSINESS LICENSE P.0. Box 190 Huntington Beach CA 92648-0711 (714) 536-5267 CITY OF HUNTINGTON BEACH BUSINESS LICENSE CERTIFICATE Lori Arm Farrell Harrison chief Financial Officer HNC0816A AUTO ALL FOR AADC 7000000194 00.0001.0194 194/:- 1111441 1 11 1 0 1 14 1 411111110 1 114111141hmluilimi r fte-e, BEST TOWING AND TRANSPORTATION SERVICE LLC 7472 WARNER AVENUE HUNTINGTON BEACH CA 92647-5441 Dear Business Owner Thank you for your payment Attached is your City of Huntington Beach Business License Please note that approximately 3 weeks pnor to the license expiration date you will be mailed a courtesy renewal notice for the corning year If for any reason your renewal notice does not arrive, you are still responsible to renew and pay your business license amount prior to the expiration date Late penalties will accrue if this payment is not received by the expiration date Please post the business license in a conspicuous place If you do not transact business from a fixed location within the city, you must carry this license with you at all times Your business vehicle should also carry this license, and the license plate number of the vehicle(s), if applicable, should match the one on the business License. Please notify Business License if there are any changes of ownership. address. business name business vehicle, or type of business conducted. Additionally, please notify the dty if you discontinue your business. There are many resources available to our licensed business people We have listed a few that might be of interest and assistance to you City of Huntington Beach Business Development - 714-536-5582 Huntington Beach Chamber of Commerce - 714-536-8888 Huntington Beach SCORE (Service Corps of Retired Executives) - 714-550-7369 County of Orange Fictitious Business Name Information - 714-834-2889 California State Board of Equalization (seller's permit information) • 949-440-3473 (Irvine Office) If you have any questions, please call a Business License representative at 714-536-5267 FOLD OR DETACH HERE FOR DISPLAY City Of Huntington Beach Business License Business NameiService Address License Number A061608 BESTTOWINGANDTRANSPORTATIONSERVICELLID 7472 WARNER HUNTINGTON BEACH License Type Specialized Owner/Corporation REST TOWING AND TRANSPORTATiON SERVICE LLC Amount Paid 5 608 25 THIS LICENSE IS ONLY FOR THE BUSINESS AND TYPE SHOWN IT IS FOR THE PERSON TO WHOM ISSUED AND IS NON-TRANSFERABLE RENEWAL S DUE ON OR BEFORE THE EXPIRATION DATE POST IN PUBLIC VIEW SIC 754:.! HB -174-Item 9. - 80 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION Department of Community Development Code Enforcement Division TO: Sergeant Julio Mendez, Traffic Bureau FROM: Rich Massi, Code Enforcement Supervisor DATE: March 14, 2018 SUBJECT: Inspection of Police Directed Towing and Storage Service Locations. The Huntington Beach Police Department requested that Code Enforcement provide an on-site inspection of the two (2) tow companies that have submitted applications for the contract schedule to be effective April 1, 2018. Code Enforcement's role was to determine if any zoning violations exist at the two locations being utilized for the storage and impound of vehicles. Our findings are as follows: On March 8,2018 at 10:00 a.m. an inspection of Mandic Motors (18881 Gothard St.) was conducted. The inspection revealed no structural or site changes since the 2012 site inspection. Further, it was found that this location appears to be in full compliance with all applicable zoning and municipal codes. 2. On March 14, 2018 at 10: 30 a.m. an inspection of Best Towing Service (7472 Warner Ave.) was conducted. The inspection revealed no structural or site changes since the 2012 site inspection. Further, it was found that this location appears to be in full compliance with all applicable zoning and municipal codes. If you have any questions or need further clarification, please contact me with the information provided. Rich Massi #1008 Code Enforcement Supervisor City of Huntington Beach 714-375-5155 rmassi@surfcity-hb.org Cc: Mike Vigliotta, Chief Asst. City Attorney Kenton Fernn, Police Lieutenant Jane James, Interim Director of Community Development HB -175-Item 9. - 81 CITY OF HUNTINGTON BEACH _ 2000 MAIN STREET CALIFORNIA 92648 P.O. BOX 70 POLICE DEPARTMENT Tel (714) 960-8811 ROBERT HANDY Chief of Police March 22, 2018 Best Towing, LLC John C. Vaughan 7472 Warner Avenue Huntington Beach, CA 92647 On April 1 5t , 2018, Best Towing, LLC, was awarded a contract, through a competitive process, to become Huntington Beach's "Official Police Tow." You and one other company will be called upon by the Huntington Beach Police Department to tow vehicles from accidents or other incidents and provide vehicle storage, when officers request a tow. This selection process was conducted, as required by the Huntington Beach Municipal Code Chapter 5.66, providing the rules for all persons and businesses providing nonconsensual police-directed vehicle towing and storage service directed by the Huntington Beach Police Department in the City. This letter will serve as your permission to refer to Best Towing, LLC, as the Huntington Beach Police Department's "Official Police Tow" on their property, as per our contract. Sincerely, RH:ico HB -176-Item 9. - 82 Dept. ID ED 18-09 Page 1 of 2 Meeting Date: 5/7/2018 Statement of Issue: The City Council is asked to approve contract Amendment No. 1 with GRC Associates, Inc. for the administration of the City’s Housing Rehabilitation Loan Program. A one year contract extension and additional funds in the amount of $85,000 are requested. Financial Impact: Services provided under this agreement are funded through the Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. There is no impact to the General Fund and sufficient funds are available in Account 239.81711 for this activity. Recommended Action: Approve and authorize the City Manager to execute “Amendment No. 1 to Professional Services Contract Between the City of Huntington Beach and GRC Associates, Inc. for Administration of the Housing Rehabilitation Loan Program” in the amount of $85,000 and extending the contract term through February 5, 2020. Alternative Action(s): Do not approve the Amendment and direct staff accordingly. Analysis: The Housing Rehabilitation Loan Program provides loans to low and moderate-income Huntington Beach homeowners and owners of rental property where low-income families live. The program’s objective is to provide low-cost financing or grants to households who would otherwise have difficulty paying for necessary health and safety-related housing repairs. These loans and grants are funded through the City’s allocation of Federal Community Development Block Grant (CDBG) funds. The program’s administrative costs are also paid with CDBG funds. In November 2015, GRC Associates was selected through a competitive Request for Proposal Process. Subsequently, the City approved a three-year contract in the amount of $90,000 with GRC Associates, Inc. for the administration of the City’s Housing Rehabilitation Loan Program. Peak interest in the grant program has depleted the initial funding provided to administer the program. Therefore, additional funding is requested to complete the program goals of the CDBG Action Plan. Goals of the program are to provide 15 loans and grants annually. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kellee Fritzal, Deputy Director, Office of Business Development SUBJECT: Approve and authorize execution of Amendment No. 1 to an agreement with GRC and Associates, Inc. for consulting services for the Housing Rehabilitation Loan Program in the amount of $85,000 for a total contract amount not to exceed $175,000 and extending the contract term through February 5, 2020 HB -177-Item 10. - 1 Dept. ID ED 18-09 Page 2 of 2 Meeting Date: 5/7/2018 The requested amendment will provide funds for administering services for four (4) additional loans/ grants in 2016/17 fiscal year; 15 loans/grants in 2017/18 fiscal year; and eight (8) loans/grants until the end of the extended contract to February 5, 2020. Under the current management contract with GRC, they will administer the following key functions of the City’s loan program: marketing, customer service, application processing, eligibility underwriting, construction scope of work preparation, contractor bid solicitation, construction inspection, and contractor payment processing. GRC estimates that it can process and complete up to 15 loans and grants per year. Staff recommends approval of the proposed contract Amendment No. 1 with GRC for the administration of the Housing Rehabilitation Loan Program until February 2020. Upon contract expiration, the City will prepare a new Request for Proposals. Environmental Status: Not applicable Strategic Plan Goal: Improve quality of life Attachment(s): 1. “Amendment No. 1 to Professional Services Contract Between the City of Huntington Beach and GRC Associates, Inc. for Administration of the Housing Rehabilitation Loan Program” HB -178-Item 10. - 2 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND GRC ASSOCIATES, INC. FOR ADMINISTRATION OF THE HOUSING REHABILITATION LOAN PROGRAM THIS AMENDMENT is made and entered into by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY," and GRC ASSOCIATES, INC., a California corporation, hereinafter referred to as "CONSULTANT." WHEREAS, CITY and CONSULTANT are parties to that certain agreement, dated March 9, 2016, entitled "Professional Services Contract Between the City of Huntington Beach and GRC Associates, Inc. for Administration of the Housing Rehabilitation Loan Program," which agreement shall hereinafter be referred to as the "Original Agreement;" and CITY and CONSULTANT wish to amend the Original Agreement to reflect the additional compensation to be paid by CITY to CONSULTANT, and the term of the Original Agreement, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. ADDITIONAL COMPENSATION CITY agrees to pay CONSULTANT, and CONSULTANT agrees to accept from CITY as full payment for services rendered, an additional sum not to exceed Eight-five Thousand Dollars ($85,000.00), in addition to the original sum of Ninety Thousand Dollars ($90,000.00), for a new total not to exceed figure of One Hundred Seventy-five Thousand Dollars ($175,000.00). 2. TERM One year is added to the term of the agreement such that the agreement will expire on February 5, 2020. 3. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. 18-6449/178802/mv 1 HB -179-Item 10. - 3 /e.c. Deputy Direc of Economic Development APPROVED ty Attorney NAII44 ATE: IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on , 2018. GRC ASSOCIATES, INC., a California corporation (2-0F7i;11--r - 6-i((-Q n)f- 2 print name ITS: (circle one) Chairman/President/Vice President By: \f/c.0vrt 2_ print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California City Manager INITIATED AND APPROVED: 18-6449/178802/my 2 HB -180-Item 10. - 4 , 7 e ACOREl CERTIFICATE OF LIABILITY INSURANCE DATE (MMiDD/YYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Empire Valley Ins Services PO BOX 707 Cypress, CA 90630 CONTACT NAME: Vince LaGrange PHONE FAX INC.(A/C. No, Ext): 6 445 7030 (A/C, No): E-MAIL A DDRESS: vince@lagrangeins.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Travelers Ins COS INSURED GRC Associates, Inc. 8060 Florence Ave Suite 303 Downey, CA 909240 INSURER B: RLI Insurance Co INSURER C: INSURER D: INSURER E : INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DWYTYY) LIMITS )( COMMERCIAL GENERAL LIABILITY >( )( 660456L6360 12101/2017 12/01/2018 EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE Xf OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $ 100,000 MED EXP (Any one person) $ 5,000 PERSONAL & ADV INJURY $ 1,000,000 GE 'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 - ..../ POLICY 1^ PRO- JEcT LOC PRODUCTS - COMP/OP AGG $ 2,000,000 OTHER: $ AUTOMOBILE LIABILITY XP 660 456L6360 12/01/2017 12/01/2018 COMBINED SINGLE LIMIT (Eu $ 1,000,000 X ANY AUTO BODILY INJURY (Per person) $ ALL OWNED AUTOS HIRED AUTOS N„,/ .1_46,_ SCHEDULED AUTOS NON-OWNED AUTOS BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS-MADE EACH OCCURRENCE AGGREGATE $ DED RETENTIONS WORKERS COMPENSATION AND EMPLOYERS LIABILITY N/A )( UB 4D42233-2-13 11/01/2017 11/01/2018 Na(0 PER 0TH- STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) Y / N E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 Professional Liability ›C >( RTP 00018020 08/09/2017 08/09/2018 Per Claim 1,000,000 Aggregate 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS !VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Certificate holder, its agents, officers and employees are included as an additional insured and, when applicable, the development aw Vhe of the City of Huntington Beach. See attached OG2010 ED A FOR % By: EL E. GAT CIrr ATTORNEY CITY OF HUNTINGTON BEACH CERTIFICATE HOLDER City of Huntington Beach Risk Management Division 2000 Main Street Huntington Beach, CA 92648 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRO I Verified by PDFfiller I .2 .k.4 1 04/13/2018 C:) 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD HB -181-Item 10. - 5 A RESOLUTION OF GRC ASSOCIATES, INC. AUTHORIZING ROBERT G. VASQUEZ TO SIGN CONTRACTS WITH CITIES ON BEHALF OF GRC ASSOCIATES, INC. WHERAS, GRC Associates. Inc. is a California corporation. and WHERAS. on March 1, 2016. ownership of GRC Associates, Inc. was transferred to Robert G. Vasquez (current President and Secretary) I HEREBAY CERTIFY that the foregoing resolution was approved by the Board of GRC Associates, Inc. on thei st day of March 2016 By Robert G. Vasquez, President and Secretary HB -182-Item 10. - 6 Dept. ID AD-18-009 Page 1 of 2 Meeting Date: 5/7/2018 Statement of Issue: Transmitted to City Council for consideration is a professional services agreement with Townsend Public Affairs, Inc. for $195,000 to provide state advocacy services for a three year period. Financial Impact: The recommended Townsend Public Affairs contract equals $5,000 per month for a total of $60,000 per year. The previous City contract for state advocacy services ended in March 2018. Funds are budgeted and available in 10030101.69365 (Professional Services) in the City Manager Department for the remaining three months of FY 2017/18 at $5,000 per month for a total of $15,000. The Proposed Budget for Fiscal Year 2018/19 contains $60,000 for these services. Funding for the remaining two years of contract expenses will be contained in future year budgets. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract Between the City of Huntington Beach and Townsend Public Affairs for State Advocacy Services” in an amount not to exceed $195,000. Alternative Action(s): Do not approve and direct staff accordingly. Analysis: In March 2018, a Request for Proposals (RFP) for state advocacy services was issued. Two proposals were received and evaluated. An evaluation team of three staff members evaluated proposals from Emanuels Jones and Associates and Townsend Public Affairs. After a thorough analysis, Townsend Public Affairs was unanimously selected to continue to provide state advocacy services to the City. While both firms were deemed qualified, Townsend Public Affairs (TPA) provided a more cost effective proposal. Since, 2014 TPA has provided both state and federal advocacy services to the City. They attend and will continue to attend monthly Intergovernmental Relations Committee (IRC) meetings and will advocate on behalf of the City in Sacramento. Additionally, TPA assists the City with grant application preparation and obtains letters of support from elected officials. Their current proposal includes complimentary federal advocacy services. The proposal from Emanuels Jones CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 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 and authorize execution of a 3-year Professional Services Contract with Townsend Public Affairs, Inc. for State Advocacy Services in an amount not to exceed $195,000 HB -183-Item 11. - 1 Dept. ID AD-18-009 Page 2 of 2 Meeting Date: 5/7/2018 and Associates did not include federal advocacy services and the firm which is based in Sacramento would charge a minimum of $1,250 for each time they attend an IRC meeting. TPA maintains a local Newport Beach office and staff is always available, with little notice, to attend IRC and City Council meetings to address any questions from the City Council. Most recently, TPA staff has represented the City in Sacramento at legislative committee hearings and has attended City Town Hall meetings as well. Hence, staff recommends the approval of a three year contract with Townsend Public Affairs for a total of $60,000 per year, plus the remaining three months of the current fiscal year to ensure full service coverage. Environmental Status: Not applicable. Strategic Plan Goal: Improve Quality of Life Enhance and Maintain Infrastructure Strengthen Economic and Financial Sustainability Enhance and Maintain Public Safety Enhance and Maintain City Service Delivery Attachment(s): 1. “Professional Services Contract Between the City of Huntington Beach and Townsend Public Affairs for State Advocacy Services” 2. Professional Services Review Forms HB -184-Item 11. - 2 HB -185-Item 11. - 3 HB -186-Item 11. - 4 HB -187-Item 11. - 5 HB -188-Item 11. - 6 HB -189-Item 11. - 7 HB -190-Item 11. - 8 HB -191-Item 11. - 9 HB -192-Item 11. - 10 HB -193-Item 11. - 11 HB -194-Item 11. - 12 HB -195-Item 11. - 13 EXHIBIT A EXHIBIT "A" STATEMENT OF WORK: (Narrative of work to be performed) See attached Proposal for methodology and scope. CONSULTANTS DUTIES AND RESPONSIBILITIES: Townsend Public Affairs (TPA) will provide state, and local advocacy services to CITY to improve the community through policy navigation in a variety of areas including, but not limited to: clean energy, public safety, employee’s relations and workers compensation,funding and support for libraries and education, transportation, and water TPA will cater directly to the needs of CITY related to state legislative affairs, administration affairs, and grant monitoring and writing. Under the monthly billing proposal in Exhibit B, TPA will also provide complimentary as needed Federal Advocacy Services. CITY'S DUTIES AND RESPONSIBILITIES: Provide prompt communication on essential needs related to City interests. Make available to Townsend Public Affairs, currently existing documents, data or information required for the performance of services. Designate a representative authorized to act on behalf of the City. Promptly examine and render findings on all documents submitted for staff review by Townsend Public Affairs. WORK PROGRAM/PROJECT SCHEDULE: TBD HB -196-Item 11. - 14 HB -197-Item 11. - 15 HB -198-Item 11. - 16 Exhibit B EXHIBIT "B" Payment Schedule (Fixed Fee Payment) -Monthly fee of $5,000 HB -199-Item 11. - 17 Exhibit B 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. 2. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of C ONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULT ANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in acco rdance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. HB -200-Item 11. - 18 HB -201-Item 11. - 19 HB -202-Item 11. - 20 HB -203-Item 11. - 21 HB -204-Item 11. - 22 HB -205-Item 11. - 23 HB -206-Item 11. - 24 HB -207-Item 11. - 25 HB -208-Item 11. - 26 HB -209-Item 11. - 27 HB -210-Item 11. - 28 PROFESSIONAL SERVICES REVIEW SERVICE: State Advocacy Services SERVICE DESCRIPTION: Provide as-needed legislative consulting services including, but not limited to, representation, information, professional advice, and support services. Consultant will act as the City’s legislative representative in Sacramento to the California State Legislature, Office of the Governor, and Executive Branch Agencies as needed. VENDOR: Townsend Public Affairs OVERALL RANKING: 1 SUBJECT MATTER EXPERTS/RATERS: 1. Assistant to the City Manager 2. Senior Administrative Analyst-Fire 3. Senior Administrative Analyst-Community Development I. MINIMUM QUALIFICATIONS REVIEW  Written Proposal Score: 1232.5 Townsend Public Affairs – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Compliance with RFP 125 150 Technical Approach 287.5 375 Qualifications 390 450 Clarity 125 150 Cost 240 300 References 65 75 Local Vendor Preference 0 5 (bonus) Total 1232.5 1,500 II. DUE DILIGENCE REVIEW Townsend Public Affairs – Summary of Review  Proven success in providing advocacy services to the City of Huntington Beach  Leader in public agency advocacy services  Strong client base of over 65 public agencies  Locally based  Provide Federal advocacy services  References include Cities of Brea, Placentia, Buena Park, Santa Ana, and Westminster Townsend Public Affairs – Pricing  Pricing of $5,000 per month is competitive and within budget.  Pricing includes option as needed Federal Advocacy Services. HB -211-Item 11. - 29 PROFESSIONAL SERVICES REVIEW SERVICE: State Advocacy Services SERVICE DESCRIPTION: Provide as-needed legislative consulting services including, but not limited to, representation, information, professional advice, and support services. Consultant will act as the City’s legislative representative in Sacramento to the California State Legislature, Office of the Governor, and Executive Branch Agencies as needed. VENDOR: Vendor #2 OVERALL RANKING: 2 SUBJECT MATTER EXPERTS/RATERS: 1. Assistant to the City Manager 2. Senior Administrative Analyst-Fire 3. Senior Administrative Analyst-Community Development I. MINIMUM QUALIFICATIONS REVIEW Written Proposal Score: 822.5 VENDOR #2 – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Compliance with RFP 80 150 Technical Approach 162.5 375 Qualifications 300 450 Clarity 70 150 Cost 160 300 References 50 75 Local Vendor Preference 0 5 (bonus) Total 822.5 1,500 II.DUE DILIGENCE REVIEW Vendor #2 – Summary of Review Leader in public agency advocacy services Over 30 years’ experience Small firm based in Sacramento Number of visits to Huntington Beach are limited Travel adds additional costs Proposal did not address specific issues in RFP. References include Burbank, Pasadena, Stockton, Glendale Vendor #2 – Pricing Pricing of $4,746 per month is competitive and within budget Additional costs for travel to meetings could total up to $15,000 annually. HB -212-Item 11. - 30 Dept. ID ED 18-08 Page 1 of 3 Meeting Date: 5/7/2018 Statement of Issue: The US Department of Housing and Urban Development (HUD) requires that the City conduct a Public Hearing and approve the City’s Annual Action Plan in order to receive the entitlement grants from the Community Development Block Grant (CDBG) Program and HOME Investment Partnership (HOME) Program. The approved 2018-19 Annual Action Plan must then be submitted to HUD no later than May 15, 2018. Financial Impact: There is no impact to the General Fund. It is anticipated that the City will receive $1,033,767 in CDBG funds and $411,664 in HOME funds for the 2017-18 Fiscal Year. Recommended Action: A) Approve the 2018-19 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program funds; and, B) Direct the Economic Development Committee (EDC) to make final determination if the 2018 -19 CDBG and HOME programs HUD grant allocation should increase or decrease from the anticipated grant allocation; and, C) Authorize the City Manager to sign any and all applications and necessary documents for Federal assistance under the CDBG and HOME programs after review by the City Attorney. Alternative Action(s): Provide direction to staff to revise the 2018-19 Annual Action Plan. Analysis: The City anticipates eligibility to receive CDBG and HOME allocations to fund programs and projects that meet the Federal eligibility requirements. The Annual Action Plan (AAP) must be approved by the City each year. It describes the activities and projects that would be funded with CDBG/HOME program funds for the following year. CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kellee Fritzal, Deputy Director, Business Development SUBJECT: Approve the 2018-19 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; direct the Economic Development Committee (EDC) to determine grant allocation; and, authorize the City Manager to sign the Application for Federal Assistance Funds HB -213-Item 12. - 1 Dept. ID ED 18-08 Page 2 of 3 Meeting Date: 5/7/2018 The City anticipates approximately $1,033,767 in CDBG funds and $411,664 for the HOME program as its 2018-19 grant allocation to Huntington Beach. The grant allocation amounts may increase or decrease from 0% to 20% depending on Congressional final approval of the 2018-19 Fiscal Year. If the City receives an allocation more or less than the anticipated allocation of $1,033,767 in CDBG funds and $411,664 for HOME funds, staff recommends that the Economic Development Committee (EDC) make the final determination regarding the increase or decrease of funds to the service providers. The 2018-19 AAP is the fourth year of implementing its Five-Year Consolidated Plan, as required by HUD, for receipt of CDBG and HOME entitlement grants. CDBG-funded projects must meet one of the three (3) national objectives with 70% of funds under the national objective of serving low and moderate-income populations, and must meet activity eligibility requirements. The three national objectives are: 1) Benefit low and moderate-income persons; 2) Aid in elimination of slums or blight; 3) Meet an urgent need (primarily limited to disaster relief from flooding or national emergencies, for example). Funded activities can include public improvements, public services, special code enforcement in designated eligible areas, economic development activities, or housing rehabilitation programs, among others. If current or previous year projects are completed under budget in any given year, funding may be applied to existing or future eligible public improvement projects. Funding for program administration is limited to 20% of the City's annual CDBG allocation. The administration costs cover the many complex Federal recordkeeping, monitoring, reporting, and public participation requirements. Administration funds are also used to provide $30,000 to the Fair Housing Foundation to meet HUD's requirement to provide fair housing counseling, education and enforcement, and outreach services. The City also utilizes a portion of its administrative funds for staff and for public noticing and the use of an as-needed consultant to assist with the Federal software and sub-grantee monitoring. The Citizens Participation Advisory Board (CPAB) held two (2) public hearings on community needs, reviewed project proposals, heard applicant presentations, and prepared recommendations for 2018-2019 CDBG funding, as listed below. The recommendations were presented at a Study Session with City Council on April 2, 2018. The City Council recommended that the Homeless Outreach Coordinator receive funds of $60,812; the Oakview Family Literacy of $9,253; and the Central Library ADA Restroom Renovation be allocated $196,413. The HOME entitlement may only fund the creation and/or preservation of very low-and low-income housing. The City has been working with nonprofit organizations to successfully provide limited- term tenant based rental assistance utilizing HOME funds. The City is also working with affordable housing developers to determine suitable projects for HOME funding. Limited funding (10%) is also available in the HOME allocation to administer this program. Action related to approval of a project with HOME funds will be brought to EDC for review and the City Council for approval at a later date. HB -214-Item 12. - 2 Dept. ID ED 18-08 Page 3 of 3 Meeting Date: 5/7/2018 CPAB COMMUNITY DEVELOPMENT BLOCK GRANT 2018-19 RECOMMENDATIONS CPAB Recommendation City Council Recommendation CDBG Administration $176,753 $176,753 Fair Housing Foundation $30,000 $30,000 TOTAL ADMIN: $206,753 $206,753 Section 108 Loan TOTAL SECTION 108: $220,536 $220,536 Housing Rehab Loan Administration $65,000 $65,000 Special Code Enforcement $190,000 $190,000 TOTAL HOUSING: $255,000 $255,000 City of HB – Community Services Dept/ Oak View Community Center, Children’s Bureau $40,000 $40,000 City of HB – Community Services Dept / Senior Care Management $40,000 $40,000 City of HB HBPD- Homeless Outreach $60,065 $60,812 City of HB – Library Services/Oak View Family Literacy Program $10,000 $9,253 StandUp for Kids OC – Street Outreach $5,000 $5,000 TOTAL PUBLIC SERVICES: $155,065 $155,065 City of HB – Public Works Dept/Central Library ADA Restrooms Renovation $168,913 $196,413 GRID Alternatives Greater Los Angeles $27,500 $0 TOTAL PUBLIC IMP: $196,413 $196,413 2018-2019 CDBG PROJECTS: $1,033,767 $1,033,767 Prior to the City Council approving the AAP, a 30-day public comment period and public hearing was required. The Huntington Beach Wave published the notice on April 5, 2018, and April 19, 2018. The public comment period concludes on May 7, 2018. No written comments were received prior to the preparation of this Request for City Council Action. Any written comments prior to the close of the comment period, as well as any comments made during the public hearing, may be considered by the City Council and will be attached to the AAP and submitted to HUD. Environmental Status: Not applicable. Strategic Plan Goal: Improve quality of life Attachment(s): 1. 2018-19 Annual Action Plan 2. PowerPoint Presentation of Recommendations HB -215-Item 12. - 3 Action Plan CITY OF HUNTINGTON BEACH ANNUAL ACTION PLAN JULY 1, 2018 - JUNE 30, 2019 CITY OF HUNTINGTON BEACH OFFICE OF BUSINESS DEVELOPMENT 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 HB -216-Item 12. - 4 CITY OF HUNTINGTON BEACH 2018/19 ANNUAL ACTION PLAN TABLE OF CONTENTS SECTION PAGE Executive Summary (AP-05) .......................................................................................... 1 Lead & Responsible Agencies (PR-05) ........................................................................... 7 Consultation (AP-10) ..................................................................................................... 8 Citizen Participation (AP-12) ....................................................................................... 13 Expected Resources (AP-15) ....................................................................................... 17 Annual Goals and Objectives (AP-20) ......................................................................... 19 Projects (AP-35) .......................................................................................................... 24 Project Summary (AP-38) ............................................................................................ 27 Geographic Distribution (AP-50) ................................................................................. 43 Affordable Housing (AP-55) ........................................................................................ 45 Public Housing (AP-60) ................................................................................................ 46 Homeless and Other Special Needs Activities (AP-65) ............................................... 47 Barriers to Affordable Housing (AP-75) ...................................................................... 52 Other Actions (AP-85) ................................................................................................. 55 Program Specific Requirements (AP-90)..................................................................... 60 Appendices Appendix A – Certifications Appendix B – Application for Federal Assistance (SF 424) CDBG Program Appendix C – Application for Federal Assistance (SF 424) HOME Program Appendix D – Public Notices Appendix E – Citizen Participation Comments HB -217-Item 12. - 5 Huntington Beach 2017/18 Annual Action Plan 1 Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction Huntington Beach’s 2015/16-2019/20 Consolidated Plan constitutes the City's strategy for addressing its housing and community development needs utilizing federal entitlement funds. The goals are to assist low and moderate-income persons, provide decent housing, create suitable living environments, and expand economic opportunities. Included in the Consolidated Plan are broad five-year objectives and strategies to accomplish these goals. Specific identifiable benchmarks for measuring progress in realizing th e City’s strategy are proposed in the Annual Action Plans. The 2018/19 Annual Action Plan includes application for funds under two different HUD entitlement programs - Community Development Block Grant (CDBG) and the HOME Investment Partnership Program. Current year entitlements combined with reallocations and repayments from prior years (CDBG Revolving Loan Funds) bring the total estimated funding for program year 2018/19 to just under $3 million. The following Annual Action Plan describes resources, programs, activities and actions Huntington Beach will use in the coming 2018/19 fiscal year to implement its strategic plan and ultimately achieve its Consolidated Plan goals and objectives, summarized in Table 1 on the following page. HB -218-Item 12. - 6 Huntington Beach 2017/18 Annual Action Plan 2 Consolidated Plan 5-Year Priority Implementing Programs 2017/18 Goal Outcome/ Objective* Preserve Existing and Create New Affordable Housing ▪ Housing Rehabilitation Loan Program ▪ Housing Rehabilitation Loan Administration ▪ Acquisition/Rehabilitation, New Construction ▪ Interval Housing Tenant Based Rental Assistance Program 15 Housing Units 15 Housing Units 6 Housing Units 25 Households DH-1 DH-1 DH-2 DH-2 Sustain and Strengthen Neighborhoods ▪ Special Code Enforcement 600 Housing Units SL-3 Support Social Service Agencies that Assist Homeless Populations ▪ Homeless Outreach Program ▪ StandUp for Kids OC – Street Outreach Program 275 Persons 91 Persons SL-1 SL-1 Support Social Service Agencies that Assist Special Needs Populations ▪ Senior Services, Care Management 150 Persons SL-1 Preserve Existing Public Facilities ▪ Central Library ADA Restrooms Renovation Project 24,225 Persons SL-3 Provide Needed Infrastructure Improvements ▪ No projects proposed in FY 2018/19. N/A N/A Provide Needed Community Services to Low and Moderate-Income Persons Youth Services ▪ Children’s Bureau General Public Services ▪ Oakview Family Literacy 400 Persons 190 Persons SL-1 SL-1 Provide Economic Opportunity ▪ Section 108 Loan Repayment Not Applicable EO-1 Planning for Housing and Community Development ▪ HOME Administration ▪ CDBG Administration ▪ Fair Housing Services Not Applicable Not Applicable Not Applicable Not Applicable Table 1 – 2015-2019 Consolidated Plan Priorities, Implementing Programs, and FY 2018/19 Goals 2. Summarize the objectives and outcomes identified in the Plan See Table above. 3. Evaluation of past performance HUD requires that grantees provide an evaluation of past performance. Since the current year, 2017/18, is still in progress, the City of Huntington Beach will more fully measure performance outputs and outcomes for CDBG and HOME under the Consolidated Annual Performance Evaluation Report (CAPER) which captures progress towards meeting five-year goals and objectives. Nonetheless, below is a synopsis of what has been accomplished to date. HB -219-Item 12. - 7 Huntington Beach 2017/18 Annual Action Plan 3 Decent Housing • In May 2015, the City issued a Notice of Funding Availability (NOFA) identifying nearly $2.5 million in available affordable housing funds. The City’s goal was to obtain proposals for affordable housing projects as well as Tenant-Based Rental Assistance (TBRA) programs. The City identified homeless, those at risk of homelessness, veterans, seniors, and victims of domestic violence as the population for which the housing programs should be targeted. The NOFA was available on the City’s website and was disseminated to local CHDO’s in the area. The City received five (5) proposals: three (3) proposals for affordable housing projects, and two (2) proposals for TBRA programs. • In FY 2015/16, the City entered into a subrecipient agreement with a nonprofit agency, Interval House, to operate a city-wide Tenant-Based Rental Assistance Program using tenant selection policies and criteria. The City gave local preference t o households impacted by homelessness, persons at risk of homelessness, veterans, seniors, and victims of domestic violence in Huntington Beach. Through the end of FY 2016/17, Interval House assisted 62 households with rental assistance, and another 13 within the first six months of FY 2017/18. The City is proposing to renew Interval House’s contract to provide rental assistance services in FY 2018/19. • Beginning in October 2016, HOME funding was provided to Mercy House to implement a second tenant based rental assistance program to very-low and low-income households, focusing on veterans and seniors. To date Mercy House has provided assistance to 28 households. • The Residential Rehabilitation Program provides two loan programs. First, the Single- Family Home Improvement Program provides up to $75,000 to pay for rehabilitation costs for a single-family home, townhouse, or condominium. Grants are also available to low income households whose estimated repair costs do not exceed $10,000 for single family dwellings and mobile homes. Second, the City administers a Multifamily Rental Housing Rehabilitation Program. The program provides up to $75,000 for repairs to duplex, triplex or four-plex units. The loan provided is a deferred payment loan with an annual interest rate of 3%. The 2015-2019 Consolidated Plan goal is to fund 75 grants/loans over the five- year period. A total of 24 loans were funded by the end of FY 2016/17. The program will continue into FY 2018/19. • In October 2016, the City approved a Substantial Amendment to the FY 2016/17 Annual Action Plan to provide $781,220 in HOME funds for an acquisition and rehabilitation HB -220-Item 12. - 8 Huntington Beach 2017/18 Annual Action Plan 4 project located at 7792 Barton Drive. The property, now owned by the Orange County Community Housing Corporation, consists of four rental units, two of which will eventually be rented to two (2) very low- and two (2) low-income eligible households. Project was completed in FY 2017/18. • In December 2016, the City completed an affordable housing project comprised of nine units at 313 11th Street, Huntington Beach, also known as Project Self -Sufficiency (PSS) House. Rehabilitation included new exterior stucco, roof, sewer, plumbing, electrical, and several window and door replacements. The units will be income and rent restricted for 55-years. Suitable Living Environment • The City’s Special Code Enforcement program continues to accomplish their goal of assisting 600 housing units each year in CDBG-eligible areas. • The City has assisted various public service agencies. While the number of public service programs assisted with CDBG funds has been reduced due to of decreased CDBG entitlement funds, the City continues to work towards its goals in providing quality and effective services youth, homeless, seniors, the disabled, and illiterate adults, as well as fair housing services funded through Administrative costs, to the Huntington Beach community. • The City had a goal to assist 400 persons through the provision of public facility improvements. To that end, in 2015/16, the City funded the Oak View Class and Counseling Space Project which intended to provide additional classroom space for the afterschool recreation program operated at the Oak View Family Resource Center by Children’s Bureau and the Boys and Girls Club of Gre ater Huntington Valley. Space was limited at this location and the additional classroom, office and meeting space was needed to accommodate various enrichment programs at the facility due to increased demand for services. The project scope of work was amended in FY 2016/17 to simply reconfigure the Family Resource Center, rather than providing additional space. The newly reconfigured space was completed in FY 2016/17 and eliminated the need for the remainder of the work. • City-funded infrastructure improvements included ADA improvements to Public Works Maintenance Zone 12 in FY 2015/16, Maintenance Zone 10 in FY 2016/17, and Maintenance Zone 1 in FY 2017/18. The City also awarded $500,000 in CDBG Revolving Loan Funds to various curb cuts citywide in FY 2017/18. The City has already reached its Consolidated Plan goal of assisting 1,224 persons in this category. HB -221-Item 12. - 9 Huntington Beach 2017/18 Annual Action Plan 5 • CDBG RLF funds in the amount of $600,000 were authorized in 2017/18 for the Huntington Beach Youth Shelter Roof, Structural, and ADA Improvements. The Youth Shelter project will benefit homeless youth which seek shelter and assistance through this facility. The project is currently underway. Economic Opportunity • During 2015/16, City staff worked closely with two grassroots groups established in the Oak View community, one of the most impacted areas of the City, and one in which many resources have been concentrated in recent years. These efforts included increased outreach to property owners and residents of the area and expansion of the number of materials provided in Spanish. These efforts resulted in a bilingual Code Enforcement officer being specifically hired to serve the Oak View community. Staff has continued to connect the Fair Housing Foundation to the Oak View community, and they are now non- voting partners of the Oak View Collaborative, which will give them increased access to the clientele in need being served out of the Oak View Family Resource Center. 4. Summary of citizen participation process and consultation process The City developed its 2018/19 Annual Action Plan through extensive consultation and coordination with housing, social service and healthcare providers; public agencies; and the local public housing agency as presented below. As a means of gaining input from the public, the City conducted public hearings and invited comments on the draft Action Plan. The City followed its Citizen Participation Plan and HUD’s guidelines for citizen and community involvement in preparation of the Action Plan to encourage citizen participation in the preparation of the documents. A draft of the 2018/19 Annual Action Plan was made available for public comment for the minimum 30-day period (April 5 – May 7, 2018). A City Council public hearing was held on May 7, 2018, providing residents and interested parties a final opportunity to comment on the Consolidated Plan prior to adoption and submittal to HUD. 5. Summary of public comments See Huntington Beach Citizen Participation Comments in Appendix. 6. Summary of comments or views not accepted and the reasons for not accepting them The City of Huntington Beach responded to all relevant comments. HB -222-Item 12. - 10 Huntington Beach 2017/18 Annual Action Plan 6 7. Summary The City took numerous steps, including public noticing, advertising and holding public meetings, to ensure citizen participation in the development of the 2017/18 Action Plan. The Action Plan addresses key findings of the Consolidated Plan Needs Assessment, including: • Housing overpayment is the most prevalent housing problem, with 80% of Huntington Beach's low and moderate income (<80% AMI) renter households facing a cost burden (>30% of income on housing costs), and 45% facing a severe cost burden (>50% of income towards housing). Consultation with housing, homeless and public service providers identify the shortage of affordable rental housing as the most significant issue facing Huntington Beach's extremely low, low and moderate-income residents. • Household overcrowding is a far less significant problem than overpayment in Huntington Beach, and has decreased from 13% of all renters in 2000 to just 5% a decade later (as documented by the 2007-2011 ACS1). However, certain neighborhoods continue to experience high levels of overcrowding. • Many of the workers who make up Huntington Beach's workforce earn modest incomes, making it challenging to afford to in live in the City where they work. The analysis of rental housing costs and affordability illustrates that households earning extremely low, low and moderate incomes cannot afford average market rents in Huntington Beach. Local occupations priced out of the rental market include: bookkeepers, bus drivers, preschool teachers, retail sales managers, and food service managers. • For homeless persons or persons at-risk of becoming homeless, the most significant problem is the lack of affordable rental housing. This problem has been compounded by record high rents combined with decreases in public funding previously used to s upport affordable housing. Surveys of homeless service providers in Huntington Beach identify additional affordable housing as the top priority need, followed by the need for additional substance abuse services, and additional tenant rental assistance. • The City's Capital Improvement Program (CIP) presents a comprehensive listing of planned and projected capital project needs based on various long-range plans, goals, and policies. The 2014/15-2018/19 CIP identifies the following general projects (within low and moderate-income areas) in need of CDBG funds over the next five years: ✓ Americans with Disabilities Act (ADA) improvements to Police Department lobby ✓ Sidewalk, curb and gutter improvements, including accessibility ramps 1 The American Community Survey (ACS), performed by the U.S. Cen sus Bureau, is an ongoing Census statistical survey that samples a small percentage of the population every year, and publishes five year averages of this data. Many of the tables in the Consolidated Plan are "pre-populated" by HUD with data from the 2007-2011 ACS, and thus the City has utilized the 2007-2011 ACS as the primary data source throughout the Plan. HB -223-Item 12. - 11 Huntington Beach 2018/19 Annual Action Plan 7 PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) 1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency HUNTINGTON BEACH Office of Business Development CDBG Administrator Kellee Fritzal, Deputy Director Office of Business Development HOME Administrator Kellee Fritzal, Deputy Director Office of Business Development Table 3 – Responsible Agencies Narrative The Lead Agency for the 2018/19 Annual Action Plan is the City of Huntington Beach, Office of Business Development. Annual Action Plan Public Contact Information Denise Bazant, Administrative Analyst City of Huntington Beach Office of Business Development 2000 Main Street City Hall Huntington Beach, CA 92648 Phone: (714) 536-5470 Email: dbazant@surfcity-hb.org HB -224-Item 12. - 12 Huntington Beach 2018/19 Annual Action Plan 8 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) 1. Introduction Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)). The City developed its five-year (2015/16 - 2019/20) Consolidated Plan through consultation with the Orange County Housing Authority; City departments; health and social service providers; and adjacent local governments. As a means of gaining input from housing, homeless and social service providers active in Huntington Beach, the City provided agencies a brief survey requesting input on services provided, priority needs and gaps in services. A total of twelve (12) agencies representing special needs populations, and an additional seven (7) housing and homeless service agencies completed the needs survey, providing direct input into th e Consolidated Plan Needs Assessment. The detailed results of these agency surveys are provided in the Consolidated Plan’s Appendix C. The City formed a Homeless Task Force which met for a nine-month period and has created a list of recommendations to deal with the homeless problems in the community. In addition, with the use of CDBG funds, the City employs a part-time Homeless Coordinator who coordinates services provided to the Homeless. The Coordinator oversees a collaborative comprised of local homeless service providers and faith-based organizations who conduct monthly meetings with the purpose of coordinating efforts and sharing information to most effectively address the issue of homelessness in Huntington Beach. The Coordinator was joined by two Huntington Beach Police Homeless Liaison Officers, which were funded separately. In 2018/19, this team will include three pat-time Homeless Case Managers to further increase the level of service to the homeless population. The Project Self Sufficiency program has transitioned away from the use of CDBG funding and is now operating through the support of other resources to provide services to single parents with children. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The City of Huntington Beach, through its Homeless Outreach Case Manager, participates in the Orange County Continuum of Care, led and coordinated by 2-1-1 Orange County and the OC Community Services. This public - nonprofit partnership helps ensure comprehensive, regional HB -225-Item 12. - 13 Huntington Beach 2018/19 Annual Action Plan 9 coordination of efforts and resources to reduce the number of homeless and persons at risk of homelessness throughout Orange County. This group serves as the regional convener of the year- round CoC planning process and as a catalyst for the involvement of the public and private agencies that make-up the regional homeless system of care. The Orange County Continuum of Care system consists of six basic components: 1. Advocacy on behalf of those who are homeless or at-risk of becoming homeless. 2. A system of outreach, assessment, and prevention for determining the needs and conditions of an individual or family who is homeless. 3. Emergency shelters with appropriate supportive services to help ensure that homeless individuals and families receive adequate emergency shelter and referrals. 4. Transitional housing to help homeless individuals and families who are not prepared to make the transition to permanent housing and independent living. 5. Permanent housing, or permanent supportive housing, to help meet the long term needs of homeless individuals and families. 6. Reducing chronic homelessness in Orange County and addressing the needs of homeless families and individuals using motels to meet their housing needs. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS The City of Huntington Beach does not receive ESG funds so this is not applicable. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities Agency/Group/ Organization Agency/Group/ Organization Type What section of the Plan was addressed by Consultation? How was the Agency/ Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? City of Huntington Beach Other government - Local Housing Need Assessment Homeless Needs Homelessness Strategy Non-Homeless Special Needs Market Analysis Citizen Participation Advisory Board (CPAB) and Homeless Collaborative meetings. City will continue maintaining its strong relationships with service providers and local HB -226-Item 12. - 14 Huntington Beach 2018/19 Annual Action Plan 10 Agency/Group/ Organization Agency/Group/ Organization Type What section of the Plan was addressed by Consultation? How was the Agency/ Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Economic Development Non-Housing Community Development Strategy Anti-Poverty Strategy Lead-based Paint Strategy jurisdictions to implement the 5- year strategy. Huntington Beach City Council Civic Leaders Housing Need Assessment Non-Homeless Special Needs Market Analysis Economic Development Non-Housing Community Development Strategy Anti-Poverty Strategy Public hearings. City Council members reflect the needs of their constituents in the community, which have been reflected in the needs and priorities identified in the Plan. Orange County Housing Authority PHA Housing Need Assessment Public Housing Needs Market Analysis Phone interview, email correspondence. The City will continue its strong partnership with the Housing Authority. AIDS Services Foundation of Orange County Services - Health Non-Homeless Special Needs Survey of Service Providers. Citizen Participation Advisory Board (CPAB) meeting. Alzheimer's Family Services Center Services - Health Non-Homeless Special Needs Survey of Service Providers. Assistance League, DreamCatchers Auxiliary Services - Homeless Homeless Needs Survey of Service Providers. Beach Cities Interfaith Services (BCIS) Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. Homeless Collaborative Meeting. Build Futures Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. Homeless Collaborative Meeting. Children's Bureau Services – Children Non-Homeless Special Needs Survey of Service Providers. CPAB meeting. Collette's Children's Home Services - Homeless Homeless Needs Phone interview. Community SeniorServ Services - Elderly Persons Non-Homeless Special Needs Survey of Service Providers. CPAB meeting. CrossPoint Church Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. CSP, Huntington Beach Youth Shelter Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. Dayle McIntosh Center Services - Persons with Disabilities Non-Homeless Special Needs Survey of Service Providers. CPAB meeting. HB -227-Item 12. - 15 Huntington Beach 2018/19 Annual Action Plan 11 Agency/Group/ Organization Agency/Group/ Organization Type What section of the Plan was addressed by Consultation? How was the Agency/ Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Family Literacy Program Services - Children Non-Homeless Special Needs Survey of Service Providers. CPAB meeting. Huntington Beach Hospital Services - Health Non-Homeless Special Needs Survey of Service Providers. Huntington Beach Police Department Services - Homeless Homeless Needs Homelessness Strategy Survey of Housing and Homeless Service Providers. Homeless Collaborative Meeting. CPAB meeting. Huntington Beach Senior Services/Senior Outreach Services - Elderly Persons Non-Homeless Special Needs Survey of Service Providers. CPAB meeting. Mental Health Association of Orange County Health Agency Non-Homeless Special Needs Survey of Service Providers. Project Self-Sufficiency Services - Homeless Homeless Needs Survey of Service Providers. CPAB meeting. Regional Center of Orange County Services - Health Non-Homeless Special Needs Survey of Service Providers. Society of St. Vincent de Paul Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. St. Vincent DePaul Society, St. Mary's by the Sea Services - Homeless Homeless Needs Survey of Housing and Homeless Service Providers. Table 4 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City of Huntington Beach developed its Consolidated Plan through consultation with housing, social and health service providers; local agencies/governments; and the Orange County Housing Authority. The City is unaware of any Agency types relevant to the Consolidated Plan that were not consulted. HB -228-Item 12. - 16 Huntington Beach 2018/19 Annual Action Plan 12 Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care OC Partnership, 2-1-1 Orange County and the OC Community Services. For the past several years, leadership and coordination of Orange County’s Continuum of Care planning process has been the shared responsibility of OC Partnership, 2-1-1 Orange County and the OC Community Services. These organizations use housing and demographic data obtained through HMIS and Homeless Counts to determine needs and to pinpoint gaps in housing and services. This in turn helps to pool and coordinate resources with the County and cities to develop coordinated homeless access and assessment centers. Huntington Beach participates in building the regional continuum of care to address the homeless and persons at- risk of homelessness. Huntington Beach 2013-2021 Housing Element City of Huntington Beach Planning Division The City recently updated its Housing Element for the 2013- 2021 period. Key housing policies and programs from the Housing Element have been reflected within the Consolidated Plan. Orange County Housing Authority Administrative Plan Orange County Housing Authority (OCHA) The purpose of OCHA’s Administrative Plan is to establish policies and procedures to implement the Section 8 Program in a manner consistent with HUD requirements and local objectives. The Consolidated Plan reflects the policies set forth in the Administrative Plan. Table 5 – Other local / regional / federal planning efforts HB -229-Item 12. - 17 Huntington Beach 2018/19 Annual Action Plan 13 AP-12 Participation - 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation The City followed HUD’s guidelines for citizen and community involvement in preparation of this Annual Action Plan. To encourage citizen participation in the preparation of the documents, the City undertook several activities as summarized below. Housing and Community Development Needs Survey In order to evaluate public opinion of specific housing and community development needs for the 2015-2019 Consolidated Plan, the City utilized a Needs Survey (in English and Spanish) in which the respondent was asked to rank the level of need for a particular service, capital improvement, and public benefit. Questions about specific needs were grouped into these areas: • Housing Needs; • Homeless Needs; • Public Service Needs; • Infrastructure Needs; and • Economic Development Needs. Agency Surveys: Special Needs Service Providers, Housing & Homeless Service Providers A variety of Agencies providing services to Huntington Beach's low and moderate-income households, special needs populations, and homeless were provided a brief survey requesting input on priority needs and gaps in the services provided. A total of nineteen Agencies completed the survey. The tabulated results of these surveys are included in the Consolidated Plan Appendix. Community Meetings For development of the Consolidated Plan, the Citizen Participation Advisory Board (CPAB) conducted a public hearing on community needs on January 15, 2015 at Huntington Beach City Hall, and a second public hearing on community needs and the Consolidated Plan on February 5, 2015. The meeting was conducted at the Oakview Library, with a total of 25 persons providing public comment on priority needs in the community. The following agencies/programs were represented: Family Literacy Program, Oakview Children's Bureau/Boys and Girls Club Afterschool Program, Project Self-Sufficiency, and Huntington Beach Senior Services/Care Management. The comments received are summarized in the Consolidated Plan Appendix. HB -230-Item 12. - 18 Huntington Beach 2018/19 Annual Action Plan 14 FY 2018/19 Annual Action Plan The City of Huntington Beach has a Citizen Participation Plan to guide the City's CDBG citizen participation process. All citizens are encouraged to participate in the planning, development, and implementation of the Annual Action Plan. Organizations receiving direct CDBG funding are in regular contact with City staff. Other organizations are consulted as-needed or have been present at various public hearings held by the City. The City holds advertised public hearings each year to gather input on community needs as part of the development of the Annual Action Plan and to advise on the progress of existing subrecipients. In all cases, a Notice of Public Hearing is published at least 15 days prior to the hearing to provide residents with adequate notice. A draft 2018/19 Annual Action Plan was made available for public comment for a 30-day period of April 5, 2018 through May 7, 2018. Public hearings were held on January 4, 2018, and February 1, 2018 and a final public hearing was held on May 7, 2018, providing residents and interested parties a final opportunity to comment on the Annual Action Plan prior to adoption and submittal to HUD. HB -231-Item 12. - 19 Huntington Beach 2018/19 Annual Action Plan 15 Citizen Participation Outreach Mode of Outreach Target of Outreach Summary of response/ attendance Summary of Comments received Summary of comments not accepted and reasons URL (If applicable) Public Hearing Minorities Non-English Speaking - Spanish Persons with disabilities Residents of Public and Assisted Housing The Citizen Participation Advisory Board (CPAB), a group of appointed Huntington Beach citizens, held public hearings on 1/4/18 and 2/1/18 to solicit input on housing and community development needs. See Huntington Beach Citizen Participation Comments in Appendix. All comments received were accepted. N/A Public Meeting Service providers and faith-based organizations representing seniors, youth, homeless, fair housing, code enforcement, infrastructure improvements, and housing Agencies requesting CDBG funding in FY 2018/19 gave presentations and answered questions from the CPAB. Meetings took place on 2/15/18, 3/1/18, and 3/15/18. Presentations from the various agencies covered need for service in Huntington Beach community and requested allocations. A list of agencies is provided in the Huntington Beach Citizen Participation Comments in Appendix. All comments received were accepted. N/A Public Meeting Non-targeted/ broad community A joint CPAB and City Council study session was held on 4/2/18. See Huntington Beach Citizen Participation Comments in Appendix. All comments received were accepted. N/A HB -232-Item 12. - 20 Huntington Beach 2018/19 Annual Action Plan 16 Citizen Participation Outreach Mode of Outreach Target of Outreach Summary of response/ attendance Summary of Comments received Summary of comments not accepted and reasons URL (If applicable) Newspaper Ad Non-targeted/ broad community A newspaper advertisement was made soliciting public comment on the draft FY 2018/19 Annual Action Plan on 4/5/2018. See Huntington Beach Citizen Participation Comments in Appendix. All comments received were accepted. N/A Public Hearing Non-targeted/ broad community The City Council held public hearing to adopt the 2018/19 Annual Action Plan on 5/7/18. See Huntington Beach Citizen Participation Comments in Appendix. All comments received were accepted. N/A Table 6 - Citizen Participation Outreach HB -233-Item 12. - 21 Huntington Beach 2018/19 Annual Action Plan 17 Expected Resources AP-15 Expected Resources – 91.220(c) (1,2) Program Source of Funds Uses of Funds Expected Amount Available Year 3 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG Public- Federal Acquisition, Planning, Economic Development, Housing, Public Improvements, Public Services $1,033,767 $0 $0 $1,033,767 $1,033,767 Entitlement funds allocation plus estimated program income plus prior-year resources. HOME Public- Federal Acquisition, Homebuyer assistance, Homeowner rehab, Multifamily rental new construction, Multifamily rental rehab, New construction for ownership, TBRA $411,664 $50,000 $771,778 $1,233,442 $411,664 Entitlement allocation plus estimated program income and prior-year resources. CDBG Revolving Loan Fund Public- Federal Homeowner Rehab $0 $250,000 $537,492 $787,492 $250,000 Loan payoffs (program income). Table 7 - Expected Resources – Priority Table HB -234-Item 12. - 22 Huntington Beach 2018/19 Annual Action Plan 18 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Federal funds play a crucial role in implementing the Consolidated Plan. Local private and non - federal funds are usually insufficient to meet the heavy demand for housing and services in our community. Agencies receiving CDBG and HOME funds use those funds as a commitment to receiving other funding sources. Likewise, the City also leverages other resources among the formula grant programs. For example, the HOME program is matched by a variety of sources, including: private and public investment including the use of low income housing tax credits. Other future sources of matching funds include: inclusionary housing in-lieu fees; residual receipts from loans of the former Redevelopment Agency; and a State SERAF loan repayment of former Redevelopment Low/Mod Housing Funds (one-time payment). HUD requires a 25% match on HOME funds drawn down for affordable housing. Historically, the City has met the match requirement with the use of former Huntington Beach redevelopment tax increment funds that were layered with HOME funds in developing afforda ble housing. While redevelopment tax increment funds are no longer available for future match requirements, the City has been utilizing a match surplus derived from prior contributions by the former Huntington Beach Redevelopment Agency in developing affordable housing developments. The City was required to utilize 20% of these funds to develop low- and moderate- income housing. The City's match surplus is approximately $3,115,277. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Not applicable. HB -235-Item 12. - 23 Huntington Beach 2018/19 Annual Action Plan 19 Annual Goals and Objectives AP-20 Annual Goals and Objectives Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Preserve Existing and Create New Affordable Housing 2018 2019 Affordable Housing Citywide Priority Housing Needs $250,000 (CDBG RLF) $65,000 (CDBG) $892,276 (HOME) $300,000 (HOME) Homeowner Units Rehabilitated – 15 Household Housing Units (Housing Rehabilitation Loan Program; Housing Rehabilitation Loan Administration) Rental Units Rehabilitated – 6 Household Housing Units (Acquisition/Rehab/ New Construction) Tenant-Based Rental Assistance 25 Households (Interval House TBRA Program) 2 Sustain and Strengthen Neighborhoods 2018 2019 Non-Housing Community Development Special Code Enforcement Areas Priority Housing Needs $190,000 (CDBG) Housing Code Enforcement/ Foreclosed Property Care – 600 Housing Units (Special Code Enforcement) HB -236-Item 12. - 24 Huntington Beach 2018/19 Annual Action Plan 20 3 Support Social Service Agencies that Assist Homeless Populations 2018 2019 Homeless Non-Housing Community Development Citywide Priority Homeless Needs $60,812 (CDBG) $5,000 (CDBG) Public service activities other than Low/Mod Income Housing Benefit – 275 Persons Assisted (Homeless Outreach Program) Public service activities other than Low/Mod Income Housing Benefit – 91 Persons Assisted (StandUp for Kids Street Outreach Program) 4 Support Social Service Agencies that Assist Special Needs Populations 2018 2019 Non-Homeless Special Needs Citywide Priority Special Needs Populations $40,000 (CDBG) Public service activities other than Low/Mod Income Housing Benefit – 150 Persons Assisted (Senior Outreach Program) 5 Preserve Existing Public Facilities 2018 2019 Non-Housing Community Development Low/Mod Areas Priority Community Facilities $196,413 (CDBG) Public Facility or Infrastructure Activities other than Low/Mod Income Housing Benefit – 24,225 Persons Assisted (Central Library ADA Restrooms Renovation Project) HB -237-Item 12. - 25 Huntington Beach 2018/19 Annual Action Plan 21 6 Provide Needed Community Services to Low/Mod Persons 2018 2019 Non-Housing Community Development Citywide Priority Community Services $40,000 (CDBG) $9,253 (CDBG) Public service activities other than Low/Mod Income Housing Benefit – 400 Persons Assisted (Children’s Bureau) Public service activities other than Low/Mod Income Housing Benefit – 190 Persons Assisted (Oakview Family Literacy) 7 Provide Economic Opportunity 2018 2019 Non-Housing Community Development Citywide Economic Opportunity $220,536 (CDBG) Other (Section 108 Loan Payment) 8 Planning for Housing and Community Development 2018 2019 Other: Administration Not Applicable Other Housing and Community Development Needs $41,166 (HOME) $206,753 (CDBG) Other – Not Applicable (HOME Administration; CDBG Administration; Fair Housing Foundation) Unallocated Funds 2018 2019 N/A N/A N/A $537,492 (CDBG RLF) N/A (Unallocated Funds) Table 8 – Goals SummaryHB -238-Item 12. - 26 Huntington Beach 2018/19 Annual Action Plan 22 Goal Descriptions 1 Goal Name Preserve Existing and Create New Affordable Housing Goal Description To the extent possible, based upon the availability of funds and a project’s viability, HOME funds will be used to assist affordable housing developers in the acquisition, construction and/or rehabilitation of low-income rental and/or owner housing units. HOME funds will also be used to fund tenant based rental assistance efforts. Lastly, the City will use CDBG revolving loan funds for residential rehabilitation programs for low and moderate-income homeowners. (Projects: Housing Rehab Loan Program; Housing Rehab Loan Administration; Acquisition/Rehabilitation/New Construction, Interval House Tenant Based Rental Assistance Program) 2 Goal Name Sustain and Strengthen Neighborhoods Goal Description Using CDBG funds, the City will sustain and strengthen neighborhoods by eliminating unsafe conditions and blight while improving the quality of life of residents within the community. (Project: Special Code Enforcement) 3 Goal Name Support Social Service Agencies that Assist Homeless Populations Goal Description Using CDBG public service funds, the City will provide homeless outreach services and case management to Huntington Beach’s homeless population. (Project: Homeless Outreach Program; StandUp for Kids Street Outreach Program) 4 Goal Name Support Social Service Agencies that Assist Special Needs Populations Goal Description Using CDBG public service funds, the City will provide assistance to special needs service providers. (Projects: Senior Care Management) 5 Goal Name Preserve Existing Public Facilities Goal Description Using CDBG funds, the City will provide financial assistance to preserve existing facilities. (Projects: Central Library ADA Restrooms Renovation Project) 6 Goal Name Provide Needed Community Services to Low/Mod Persons Goal Description Using CDBG public service funds, the City will provide assistance to various social service agencies for programs for youth, fair housing, anti-crime, and general public services. Services must benefit at least 51 percent low/mod persons. (Projects: Children’s Bureau, Oakview Family Literacy Program) 7 Goal Name Provide Economic Opportunity Goal Description Using CDBG funds, the City will support projects and programs targeted to low and moderate-income business owners, persons wishing to start or expand a business, or in workforce development. The City will also use CDBG funds to pay debt service associated with a previous Section 108 Loan. (Projects: Section 108 Loan Repayment) HB -239-Item 12. - 27 Huntington Beach 2018/19 Annual Action Plan 23 8 Goal Name Planning for Housing and Community Development Goal Description The City will conduct the following administration/planning activities: (1) General Administration of CDBG and HOME Program, including preparation of budget, applications, certifications and agreements, (2) Coordination of CDBG- funded capital improvement projects, (3) Coordination of Public Service Subrecipients, (4) Coordination of HOME-funded housing projects, (5) Monitoring of CDBG and HOME projects/programs to ensure compliance with federal regulations, (6) Preparation of Annual Action Plan, (7) Preparation of the CAPER; and (8) Fair Housing Foundation counseling, education and enforcement (CDBG funded). Up to 20% of the annual CDBG entitlement and up to 10% of the HOME entitlement is allowed for administration activities. (Project: HOME Administration, CDBG Administration, Fair Housing Foundation) Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b) As presented above, the City’s one-year goal is to provide affordable housing opportunities to 46 extremely low, low, and moderate-income households through the following activities: • Housing Rehabilitation Loan Program: The City will offer rehabilitation assistance to 15 extremely low, low, and moderate-income households. • Acquisition / Rehabilitation / New Construction: Huntington Beach will pursue another affordable housing project with at least 6 units to be managed and operated by a local CHDO. Two projects are currently being reviewed. One project in an adjacent city could produce approximately 20 single-occupancy units with wrap around services for homeless individuals; another project could produce up to 50 affordable rental units; however, these unit counts are preliminary. At the very least, the City anticipates creating six units of affordable housing in the program year. • Tenant Based Rental Assistance: The City will continue working with Interval House to provide 25 households with short and medium-term rental assistance as well as housing relocation and stabilization services. HB -240-Item 12. - 28 Huntington Beach 2018/19 Annual Action Plan 24 Projects AP-35 Projects – 91.220(d) The City plans to undertake the following CDBG and HOME funded activities during Fiscal Year 2018/19 to address its priority housing and community development needs. All proposed activities are eligible and meet program service targets. Additionally, the City of Huntington Beach has not exceeded any of its maximum allocations for CDBG public services, CDBG administration, or HOME administration. With as estimated CDBG allocation of $1,033,767, the City of Huntington Beach is allowed to allocate a maximum of 15%, or $155,065, in public services. This Annual Action Plan proposes to allocate the maximum 15% in public services towards the following activities: Homeless Outreach Program ($60,065); Senior Services Care Management ($40,000); Children’s Bureau ($40,000); StandUp for Kids Street Outreach ($5,000); and the Oakview Family Literacy Program ($10,000). CDBG regulations also permit a maximum allocation of 20%, or $206,753, for CDBG administration activities. The City has allocated $176,753 for CDBG Administration and $30,000 to the Fair Housing Foundation, for a total of $206,753, the maximum allowed. Lastly, a maximum of 10%, or $41,166, in HOME administration activities is allowed to be allocated in FY 2018/19. The City has allocated this amount for the HOME Program Administration activity in the Annual Action Plan. It is important to note, however, that these grant allocations are estimates. As of the approval of this Annual Action Plan, HUD has not released final allocation information. HUD has advised that grant allocations can vary up to 20% of last years’ allocations used here. Staff will prorate allocations as necessary when final allocations are given. Any substantial changes will be brought back to the Economic Development Committee for a final determination of funds. HB -241-Item 12. - 29 Huntington Beach 2018/19 Annual Action Plan 25 Projects # Project Name 1 Housing Rehabilitation Loan Program 2 Housing Rehabilitation Loan Administration 3 City/CHDO Housing Project (Acquisition/Rehabilitation/New Construction) 4 Interval House Tenant Based Rental Assistance (TBRA) Program 5 Special Code Enforcement 6 Homeless Outreach Program 7 StandUp for Kids Street Outreach Program 8 Senior Services – Care Management 9 Central Library ADA Restroom Renovation Project 10 Oak View Community Center – Children’s Bureau 11 Oakview Family Literacy 12 Section 108 Loan Repayment 13 HOME Administration 14 CDBG Administration 15 Fair Housing Foundation 16 Unallocated CDBG RLF Funds Table 9 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The Housing and Homeless Needs Assessment of the Consolidated Plan discusses housing need by income category. Income levels identified are 1) extremely low-income; 2) very low-income, and; 3) low- and moderate-income households. Based on HUD recommendations, general relative priorities for funding will be as follows: HIGH PRIORITY: Activities to address this need will be funded during the five-year period. MEDIUM PRIORITY: If funds are available, activities to address this need may be funded by the City during the five-year period. The City may also use other sources of funds and take actions to locate other sources of funds. LOW PRIORITY: It is not likely the City will fund activities to address this need during the five-year period. The highest priority has been assigned to the needs of the lowest income residents, based on the assumption that in this high cost real estate market, they are at greater risk of displacement, homelessness or other serious housing situations due to limited financial resources and other limitations they may face. HB -242-Item 12. - 30 Huntington Beach 2018/19 Annual Action Plan 26 The Consolidated Plan identifies several obstacles in meeting underserved needs, including the high and sustained demand for public services, as well as the shortage of funding to address the community's needs. HB -243-Item 12. - 31 Huntington Beach 2018/19 Annual Action Plan 27 AP-38 Project Summary Project Summary Information 1 Project Name Housing Rehab Loan Program Target Area Citywide Goals Supported Preserve Existing and Create New Affordable Housing Needs Addressed Priority Housing Needs Funding CDBG RLF: $250,000 Description Eligibility Citation: 24 CFR 570.202 - Housing/Rehab: Single Unit Residential National Objective Citation: 24 CFR 570.208(a)(3) - Low Mod Housing Benefit The City of Huntington Beach Housing Rehabilitation Loan Program provides emergency grants and low interest loans to low and very low-income families who need repairs to their homes. The City is proposing to use CDBG Revolving Loan Funds to fund the grants and loans. The Huntington Beach Rehabilitation Loan Program (RLP) has been administered by the Office of Business Development since the early 1970’s. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 15 housing units Location Description Citywide Planned Activities Same as description. HB -244-Item 12. - 32 Huntington Beach 2018/19 Annual Action Plan 28 2 Project Name Housing Rehab Loan Administration Target Area Citywide Goals Supported Preserve Existing and Create New Affordable Housing Needs Addressed Priority Housing Needs Funding CDBG: $65,000 Description Eligibility Citation: 24 CFR 570.202 (b)(9) – Rehab Administration National Objective Citation: 24 CFR 570.208 (a)(3) – Housing Activities The City of Huntington Beach Housing Rehabilitation Loan Program provides emergency grants and low interest loans to low and very low-income families who need repairs to their homes. The program will also extend in 2018/19 to property multi-family property owners with 51% or more of units occupied by qualified residents. The City is requesting a grant in the amount of $65,000 to pay for operational costs associated with the City of Huntington Beach Rehabilitation Loan Program (RLF), which has been administered by the Office of Business Development since the early 1970’s. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 15 housing units Location Description Citywide Planned Activities Same as description. HB -245-Item 12. - 33 Huntington Beach 2018/19 Annual Action Plan 29 3 Project Name City/CHDO Housing Project (Acquisition/Rehabilitation/New Construction) Target Area Citywide Goals Supported Preserve Existing and Create New Affordable Housing Needs Addressed Priority Housing Needs Funding HOME: $892,276 Description Eligibility Citation: 24 CFR 92.205(a)(1) - Acquisition/Rehabilitation/New Construction National Objective Citation: 24 CFR 570.208(a)(3) - Low Mod Housing Benefit While the exact number and type of families that will benefit from a City/CHDO Housing Project is still to be determined, the amount of HOME funds available for affordable housing is approximately $892,000. The City in interested in funding a project that will provide wrap around services for the City’s homeless population. Target Date To be determined. Estimate the number and type of families that will benefit from the proposed activities Approximately 6 LMI families will benefit from the proposed activity. Location Description To be determined. Planned Activities Same as description. HB -246-Item 12. - 34 Huntington Beach 2018/19 Annual Action Plan 30 4 Project Name Interval House Tenant Based Rental Assistance (TBRA) Program Target Area Citywide Goals Supported Preserve Existing and Create New Affordable Housing Needs Addressed Priority Housing Needs Funding HOME: $300,000 Description Eligibility Citation: 24 CFR 92.205(a)(1) - Acquisition/Rehabilitation/New Construction National Objective Citation: 24 CFR 570.208(a)(3) - Low Mod Housing Benefit The City will continue working with Interval House to provide 25 households with short and medium-term rental assistance as well as housing relocation and stabilization services. The TBRA Program will meet the City's investment criteria by dedicating program assistance to homeless households with incomes at or below 30% AMI with preference to veterans, seniors, and victims of domestic violence. Target Date 06/30/2020 Estimate the number and type of families that will benefit from the proposed activities 25 households Location Description Citywide. Planned Activities Same as description. HB -247-Item 12. - 35 Huntington Beach 2018/19 Annual Action Plan 31 5 Project Name Special Code Enforcement Target Area Special Code Enforcement Areas Goals Supported Sustain and Strengthen Neighborhoods Needs Addressed Priority Housing Needs Funding CDBG: $190,000 Description Eligibility Citation: 24 CFR 570.202 (c) - Code Enforcement National Objective Citation: 24 CFR 570.208 (a)(1) - Low Mod Area Benefit Funding for the Special Code Enforcement Program will be used to support salaries for one (2) full-time Code Enforcement Officers. As the City ages, certain areas within the City of Huntington Beach need ongoing, proactive property maintenance inspections by Code Enforcement to maintain a safe environment. Thus, with continued code enforcement efforts, the quality of life and housing standards are maintained. The Special Code Enforcement Program benefits the community overall by upgrading the housing stock within deteriorating and deteriorated areas. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 600 housing units Location Description Special Code Enforcement Areas. Planned Activities Same as description. HB -248-Item 12. - 36 Huntington Beach 2018/19 Annual Action Plan 32 6 Project Name Homeless Outreach Program Target Area Citywide Goals Supported Support Social Service Agencies that Assist Homeless Populations Needs Addressed Priority Homeless Needs Funding CDBG: $60,812 Description Eligibility Citation: 24 CFR 570.201 (c) - Operating Costs of Homeless/AIDS Patients Programs National Objective Citation: 24 CFR 570.208 (a)(2) - Low/Mod Limited Clientele Benefit This project will fund one part-time Homeless Outreach Coordinator who oversees these efforts, and three part-time Homeless Case Managers who works in conjunction with the 2 Homeless Police Liaison Officer's and Coordinator. These part-time individuals, in conjunction with two police officers, are strictly dedicated to homeless outreach and enforcement issues, and comprise the City's Homeless Task Force. The funded positions are absolutely vital to the success of the unit, as each homeless client has unique needs. A great deal of personal follow-up, effort, resource connection and behavioral modification is necessary to create a successful outcome in obtaining and maintaining housing, which is the ultimate goal of the Homeless Task Force. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 275 persons (homeless) Location Description Citywide Planned Activities Same as description. HB -249-Item 12. - 37 Huntington Beach 2018/19 Annual Action Plan 33 7 Project Name StandUp for Kids Street Outreach Program Target Area Citywide Goals Supported Support Social Service Agencies that Assist Homeless Populations Needs Addressed Priority Homeless Needs Funding CDBG: $5,000 Description Eligibility Citation: 24 CFR 570.201 (c) - Operating Costs of Homeless/AIDS Patients Programs National Objective Citation: 24 CFR 570.208 (a)(2) - Low/Mod Limited Clientele Benefit StandUp for Kids Orange County's weekly Street Outreach Program is a county-wide program where volunteer staff scout Orange County streets searching for youth who are currently unsheltered or unstably housed. StandUp for Kids serves teens and youth (ages 12 - 24) who are homeless, at-risk, aging- out of foster care, or runaways to equip them with the tools they need to transition from life on the street to a life of stability and opportunity. The Street Outreach program provides basic services (food, clothing, hygiene items, and survival kits) as well as medical assistance and compassionate mentoring. Each city program is supported by a Program Director who is responsible for making connections with key contacts in the city, supervising all weekly city visits, organizing and training all volunteers, and maintaining records of clients served. City residents will benefit by the addition of productive citizens to the city's population. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 91 persons (homeless) Location Description Citywide Planned Activities Same as description. HB -250-Item 12. - 38 Huntington Beach 2018/19 Annual Action Plan 34 8 Project Name Senior Services Care Management Target Area Citywide Goals Supported Support Agencies that Assist Special Needs Populations Needs Addressed Priority Special Needs Funding CDBG: $40,000 Description Eligibility Citation: 24 CFR 570.201(e) - Public Services/Senior Services National Objective Citation: 24 CFR 570.208(a)(2) - Low Mod Limited Clientele Benefit Senior Services Care Management focuses on the unmet needs of at-risk older adults by providing services aimed toward successful aging in place. Care Management, Home Delivered Meals, and Transportation are designed to assist frail and homebound seniors remain in their own homes safely while enhancing their quality of life. Senior Outreach Care Managers work with and assist at-risk seniors, consult with families and caregivers, and collaborate with service providers to help develop a plan for late life. Care Managers are a source of information and support to Huntington Beach residents regarding any complicated aging issues. Case Management services improve the quality of life of older adults and those who care for them. Services include: assessment, care planning, education, advocacy, application and connection to benefits, home delivered meals, emergency food, transportation, end of life planning, home improvement and safety, personal emergency response systems, and emotional support. CDBG funds will be used towards the funding of two half- time Care Managers, whom provide services to approximately 375 extremely low, low and moderate incomes, frail, at-risk, and homebound seniors. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 150 persons (seniors) Location Description The Senior Services Care Management Program is located at 18041 Goldenwest Street, Huntington Beach; however, the service is available to elderly persons citywide. Planned Activities Same as description. HB -251-Item 12. - 39 Huntington Beach 2018/19 Annual Action Plan 35 9 Project Name Central Library ADA Restroom Renovation Project Target Area Citywide Goals Supported Provide Needed Infrastructure Improvements Needs Addressed Priority Infrastructure Improvements Funding CDBG: $196,413 Description Eligibility Citation: 24 CFR 570.201(c) - Public Facilities and Infrastructure Improvements/Other National Objective Citation: 24 CFR 570.208(a)(2) - Low Mod Limited Clientele Benefit The Public Works Department proposes to design and construct renovations to the main floor Men's and Women's restrooms in the original section of the Central Library. These renovations will be designed by a professional architect to create ADA-compliant restrooms, thereby improving accessibility to this facility for individuals with disabilities. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 24,225 persons Location Description 7111 Talbert Avenue, Huntington Beach, CA 92648 Planned Activities Same as description. HB -252-Item 12. - 40 Huntington Beach 2018/19 Annual Action Plan 36 10 Project Name Children’s Bureau Target Area Citywide Goals Supported Provide Needed Community Services to Low and Moderate Persons Needs Addressed Priority Community Services Funding CDBG: $40,000 Description Eligibility Citation: 24 CFR 570.201(e) - Public Services/Youth Services National Objective Citation: 24 CFR 570.208(a)(2) - Low Mod Limited Clientele Benefit Children’s Bureau is committed to providing vulnerable children, especially in the early years, the foundation necessary to become caring and productive adults by: 1) preventing child abuse and neglect; 2) protecting, nurturing, and treating abused children; 3) enhancing the potential of families and communities to meet the needs of their children; and 4) advancing the welfare of children and families through superior programs in child development, parent education, mental health, research and advocacy. CDBG funds will be used to provide an after school drop-in recreation program in a safe environment, promoting healthy activity, social interaction, and fun as an alternative to unsupervised, unstructured, high-risk activity. CDBG funds will pay for staff, supplies, equipment, and services. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 400 persons (youth) Location Description Oakview Enhancement Area. Planned Activities See description. HB -253-Item 12. - 41 Huntington Beach 2018/19 Annual Action Plan 37 11 Project Name Oakview Family Literacy Program Target Area Citywide Goals Supported Provide Needed Community Services to Low and Moderate Persons Needs Addressed Priority Community Services Funding CDBG: $9,253 Description Eligibility Citation: 24 CFR 570.201(e) - Public Services/Other Public Services National Objective: 24 CFR 570.208(a)(2) - Low Mod Limited Clientele Benefit CDBG funds will be used to operate the Family Literacy Program which provides one-to-one and small group tutoring so that low-income adults in Huntington Beach can improve their ability to understand, speak, read, and write in English. Increased English literacy skills give adults improved ability to function on the job and in the community and help their children succeed in school. Basic computer workshops increase computer literacy necessary for adults to function in the 21st century. Having a literate citizenry makes a safer and more successful community for all. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 190 persons Location Description Citywide Planned Activities Same as description. HB -254-Item 12. - 42 Huntington Beach 2018/19 Annual Action Plan 38 12 Project Name Section 108 Loan Repayment Target Area Citywide Goals Supported Provide Economic Opportunity Needs Addressed Economic Opportunity Funding CDBG: $220,536 Description Eligibility Citation: 24 CFR 570, Subpart M - Planned Repayments of Section 108 Loans National Objective Citation: Not Applicable A Section 108 Loan used for the annual loan payment for rehabilitation of the historic City Gym and Pool. CDBG funds will be used to repay the existing Section 108 loan. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Not applicable. Planned Activities Same as description. HB -255-Item 12. - 43 Huntington Beach 2018/19 Annual Action Plan 39 13 Project Name HOME Program Administration Target Area Citywide Goals Supported Planning for Housing and Community Development Needs Addressed Other Housing and Community Development Needs Funding HOME: $41,166 Description Eligibility Citation: 24 CFR 92.207(a) - General Management, Oversight and Coordination National Objective Citation: Not Applicable The City of Huntington Beach Office of Business Development is responsible for administering the HOME program. Up to 10 percent of the HOME allocation will be used to provide for staffing and other program administration costs associated with the HOME program, including planning, reporting, monitoring, and IDIS setup and maintenance. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Not applicable. Planned Activities Same as description. HB -256-Item 12. - 44 Huntington Beach 2018/19 Annual Action Plan 40 14 Project Name CDBG Program Administration Target Area Citywide Goals Supported Planning for Housing and Community Development Needs Addressed Other Housing and Community Development Needs Funding CDBG: $176,753 Description Eligibility Citation: 24 CFR 570.206(a) - Administration and Planning/General Program Administration National Objective Citation: Not Applicable The City will conduct the following administration/planning activities: (1) General Administration of CDBG Program, including preparation of budget, applications, certifications and agreements; (2) Coordination of CDBG-funded capital improvement projects; (3) Coordination of Public Service Subrecipients, (4) Coordination of HOME-funded housing projects; (5) Monitoring of CDBG projects/programs to ensure compliance with federal regulations; (6) Preparation of the Annual Action Plan; (7) Preparation of the CAPER; and (8) Fair Housing Foundation counseling, education and enforcement. Up to 20% of the annual CDBG entitlement is allowed for administration activities. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Not applicable. Planned Activities Same as description. HB -257-Item 12. - 45 Huntington Beach 2018/19 Annual Action Plan 41 15 Project Name Fair Housing Foundation Target Area Citywide Goals Supported Provide Needed Community Services to Low and Moderate Persons Needs Addressed Priority Community Services Funding CDBG: $30,000 Description Eligibility Citation: 24 CFR 570.206(c) - Administration and Planning/Fair Housing Activities National Objective Citation: Not Applicable The Fair Housing Foundation (FHF) offers a comprehensive Fair Housing Program that meets the HUD CDBG requirement to affirmatively further fair housing and includes the following services: 1) discrimination complaint counseling, intake, investigations, and resolutions; 2) education and outreach services; 3) general housing (tenant/landlord) counseling, mediations, assistance, resolution, and referrals; and 4) affirmatively further fair housing activities to address the Analysis of Impediments to Fair Housing Choice. Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Citywide. Planned Activities Same as description. HB -258-Item 12. - 46 Huntington Beach 2018/19 Annual Action Plan 42 16 Project Name Unallocated CDBG Revolving Loan Funds Target Area Not applicable Goals Supported Not applicable Needs Addressed Not applicable Funding CDBG RLF: $537,492 Description Unallocated CDBG Revolving Loan Funds Target Date Not applicable Estimate the number and type of families that will benefit from the proposed activities Not applicable Location Description Not applicable Planned Activities Not applicable HB -259-Item 12. - 47 Huntington Beach 2018/19 Annual Action Plan 43 AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed Huntington Beach is an urbanized coastal community located in northwestern Orange County, California. Much of the City’s residentially designated land has already been developed. Future residential development rests primarily upon the recycling of existing parcels and infill development. Surrounding Huntington Beach are the cities of Seal Beach to the northw est, Westminster to the northeast, Fountain Valley and Costa Mesa to the east, Newport Beach to the southeast, and the Pacific Ocean to the southwest. The City utilizes CDBG and HOME funds for projects and programs operated citywide. However, the majority of CDBG-funded infrastructure and facility projects are targeted to the most-needy neighborhoods: those census tracts where 47.83% or more of the residents are low- or moderate- income. Specifically, for Special Code Enforcement activities, the City has identified deteriorated areas based on observed violations of the Uniform Housing Code. This effort was undertaken to determine geographical areas meeting the U.S. Department of Housing and Urban Development (HUD) guidelines to utilize Community Development Block Grant (CDBG) funding for special code enforcement and preservation activities in deteriorating areas. From this survey, staff identified four geographical areas that met the criteria for a deteriorating area, as well as meeting the CDBG national objective of serving low and moderate-income households: • Bolsa Chica – Heil • East – Central • South – Central • Southeast These four areas of concentrated deteriorated housing have been designated as Spec ial CDBG Code Enforcement areas and have become the focus of increased code enforcement and neighborhood preservation efforts to improve the quality of life and condition of housing . With the release of HUDs updated 2014 Low and Moderate-Income Summary Data, however, several of the census block groups within the four Special CDBG Code Enforcement areas no longer qualify as low and moderate income (minimum 47.83% low/mod households). Thus, the City will no longer utilize CDBG funds for code enforcement in the areas that do not qualify. HB -260-Item 12. - 48 Huntington Beach 2018/19 Annual Action Plan 44 Geographic Distribution Target Area Percentage of Funds Low/Mod Income Areas 1% Special Code Enforcement Areas 6.2% Citywide 92.8% Table 10 - Geographic Distribution Rationale for the priorities for allocating investments geographically All public service programs, ADA improvement projects, and housing projects funded with CDBG or HOME will be available citywide to eligible persons. The City will also allocate CDBG funds for special code enforcement and preservation activities in Special Code Enforcement Areas that have been identified as deteriorated based on the observance of violations of the Uniform Housing Code. These areas include Bolsa Chica-Heil; East-Central; South-Central; and Southeast. Public facility and public infrastructure projects will be targeted to neighborhoods where 47.83% or more of residents are low and moderate income. HB -261-Item 12. - 49 Huntington Beach 2018/19 Annual Action Plan 45 Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction One Year Goals for the Number of Households to be Supported Homeless 31 Non-Homeless 15 Special-Needs Total 46 Table 11 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 25 The Production of New Units Rehab of Existing Units 21 Acquisition of Existing Units Total 46 Table 12 - One Year Goals for Affordable Housing by Support Type Discussion The City will continue working with Interval House to provide 25 households with short and medium-term rental assistance as well as housing relocation and stabilization services. The TBRA Program will meet the City's investment criteria by dedicating program assistance to homeless households with incomes at or below 30% AMI with preference to veterans, seniors, and victims of domestic violence. The City will allocate $300,000 in 2018/19 HOME funds to this effort. Secondly, HOME funds in the amount of $892,276 are available for an affordable housing project and can support approximately six affordable units. While a specific project is yet to be determined, City staff is currently exploring two projects, one in Huntington Beach and another in Midway City, that will each provide wrap-around services for homeless persons. An amendment to this Annual Action Plan will be submitted once an Affordable Housing Agreement has been established for one or both of these projects. Lastly, the City will use CDBG Revolving Loan Funds to continue the City’s Residential Rehab Loan Program with a goal of assisting 15 homeowners. HB -262-Item 12. - 50 Huntington Beach 2018/19 Annual Action Plan 46 AP-60 Public Housing – 91.220(h) Introduction The City of Huntington Beach does not have any public housing developments. However, Huntington Beach is one of a number of cities that benefits from the se rvices of the Orange County Housing Authority (OCHA), which is currently managing over 1,000 Housing Choice Vouchers for residential units within Huntington Beach (February 2015); 58 of these were Veterans Affairs Supportive Housing Vouchers, 15 were Family Unification Vouchers, and 45 were Shelter Plus Care vouchers for formerly homeless disabled households. Elderly households comprise 43% of the City’s Section 8 recipients (434 households), indicative of several large senior housing complexes with significant numbers of Section 8 tenants. The City also has a high proportion of disabled households receiving Section 8 (over 400 households), although many of these households are also likely to be seniors. OCHA last opened its Housing Choice Voucher waiting list in February 2012, during which it received 48,298 applications for assistance. Of the total applicants, 24,756 were living within Orange County, 3,262 were working in the County but living elsewhere, and 20,280 were living and working outside the County. Waiting list statistics highlight both the tremendous need for affordable housing in Huntington Beach, and the need to assist a variety of family needs from differing demographics. The data indicates the need to serve special needs populations that are disabled and/or homeless, as well as the growing need to serve the expanding senior citizen population. Actions planned during the next year to address the needs to public housing Not applicable. However, the City will send out letters to all apartment owners, encouraging them to rent to people participating in the Tenant Based Rental Assistance and Section 8 programs. Actions to encourage public housing residents to become more involved in management and participate in homeownership Not applicable. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. HB -263-Item 12. - 51 Huntington Beach 2018/19 Annual Action Plan 47 AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction Throughout the country and the Los Angeles and Orange County region, homelessness has become an increasing challenge. Factors contributing to the rise in homelessness include a lack of housing affordable to low- and moderate-income persons, increases in people living below poverty levels, reductions in subsidies to the poor, drug/alcohol abuse, and de- institutionalization of the mentally ill. As described in greater detail in Section MA-30 Homeless Facilities and Services in the Consolidated Plan, the City of Huntington Beach has been actively engaged in numerous activities to decrease homelessness and provide effective and efficient support to local non-profits that provide services to this population. In March 2015, the City Council authorized formation of a Homeless Task Force Subcommittee to coordinate homeless and housing efforts and provide City support and guidance regarding services. The Task Force is keeping the City Council apprised of issues and services and makes recommendations as needed. In addition, the Office of Business Development and the Huntington Beach Police Department utilized CDBG public service funds for one part-time Homeless Coordinator and up to three part- time Homeless Case Mangers to serve as the City's point persons for homeless issues. Funding will continue in 2018/19. Once every two years, Orange County undertakes an effort to enumerate all of the sheltered and unsheltered homeless people within the county in a given twenty‐four-hour period. This effort, known as the Homeless Point‐in‐Time (PIT) Count, is congressionally mandated for all communities that receive U.S. Department of Housing and Urban Development (HUD) funding for homeless programs. The most recent PIT in Orange County was held on a single night in January 2017 with the assistance of over 40 homeless service providers. The January 2017 PIT count enumerated 4,792 homeless individuals in Orange County, reflecting an almost eight percent increase from the 2015 count of 4,251, and an almost 13 percent increase from the 2013 count of 4,251 homeless persons. Of the 4,792 homeless persons counted in 2017, 54% are unsheltered (2,584) and 46% are sheltered (2,206). The Orange County Point in Time Count does not provide specific information by jurisdiction. However, the 2014 Homeless Conditions Report and Recommendations commissioned by the City of Huntington Beach (prepared by City Net) estimates 283 homeless individuals within the City. This figure generally correlates with the Huntington Beach Police Department estimates of 200 unsheltered homeless at any given time in the City because Police Officers would likely be HB -264-Item 12. - 52 Huntington Beach 2018/19 Annual Action Plan 48 referring to unsheltered homeless individuals, which are more readily visible and identifiable as homeless. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Huntington Beach is committed to addressing homelessness. In March 2014, the City Council conducted a study session on homelessness in the community, including a presentation by the Executive Director of the Orange County Commission to End Homelessness and the City's Police Chief. Subsequently, the City contracted with City Net, a collaborative organization, to conduct research on the scope and scale of the homeless issues in Huntington Beach, provide an asset map of homeless services and resources, and deliver recommendations about how to strategically leverage existing assets and resources in the community to address the problem. City Net’s findings and recommendations are summarized below: 1. The City possesses an abundance of non-profit organizations, faith congregations, local businesses, and community groups that are eager for collaborative solutions to ending homelessness in Huntington Beach. 2. The groups listed above are decentralized both structurally and geographically. 3. The City should invest in coordinating these resources without aggregating them or investing in heavy infrastructure. 4. A proactive connection should be established between the non-profit and faith communities to City safety personnel and other first responders. 5. The City should invest in a multi-sector collective impact collaborative which would meet regularly to achieve goals over the course of 12-months. Prior to publication of the City Net Homeless Conditions Report, a former Huntington Beach Mayor coordinated the "Huntington Beach Homeless Collaborative" comprised of various homeless service providers and faith-based organizations. The Collaborative conducts monthly meetings at the Central Library with the purpose of: gathering resource information useful in dealing with the homeless issue; developing an information and referral system for collaborative members; establishing partnerships with the City; and coordinating activities between homeless service providers. City staff from the Police Department, Community Services, and the City Manager’s Office/Office of Business Development attend these meetings. HB -265-Item 12. - 53 Huntington Beach 2018/19 Annual Action Plan 49 The City's Police Department recently engaged the services of the Coast to Coast Foundation, a non-profit Police Officer Liaison Program (POLP) designed to eliminate resource barriers and support law enforcement homelessness teams. Coast to Coast partners with police departments throughout Orange County, providing a model that balances enforcement with outreach. Resources include: Homeless Liaison Officer (HLO) kits for daily patrol, 24/7 locker locations kits, homeless relocation, trained outreach team, community campaign/education and empowerment in support of law enforcement. The City's Police Department and Coast to Coast have created a volunteer program specifically designed to the needs of Huntington Beach. The volunteers engage in monthly outreach efforts to the homeless and have experienced great success. On March 16, 2015, the City Council authorized the creation and establishment of a seven - member Homeless Task Force to make recommendations to the City Council regarding programs and services for the homeless. Subsequently, the Task Force created six Homeless Task Force Sub-Committees on the following topics: Police; Housing; Coordination of Services & Economic Self-Sufficiency; and Health Services. The Task Force is coordinated by the Office of Business Development with assistance from the Police Department, and the Homeless Outreach Coordinator. On March 22, 2016, the Task Force presented 22 recommendations to the City Council. Since the establishment of the Homeless Task Force, many accomplishments have been made to date: Presentations from a variety of homeless organizations including Beach Cities Interfaith Services, OC Health Care Agency, Share Ourselves, the Illumination Foundation, Fresh Beginnings, and the Pasadena and Orange Police Departments; and Creation of six homeless sub-committees who have provided the Task Force with many recommendations to address safety, housing, services, economic self-sufficiency, and health services. The City Council established a City Council Homeless Task Force Subcommittee, consisting of three (3) City Councilmembers, to monitor the implementation of recommendations made by the Homeless Task Force in 2016. The Office of Business Development and the Police Department have been granted continued CDBG public service funds for FY 2018/19 to fund the current part-time Homeless Coordinator position to serve as the City's point person for homeless issues, as well as three part-time case manager/social worker. The Homeless Coordinator acts as liaison with the Police Department, non-profit organizations and for-profit groups such as mental health centers, hospitals, churches, shelters, addiction centers and rehabilitation programs. The Coordinator will assist the Po lice Department in locating shelter beds for the homeless and rehabilitation (detox) beds for those HB -266-Item 12. - 54 Huntington Beach 2018/19 Annual Action Plan 50 in need of assistance and provide wrap-around services for homeless clientele. In addition, both the coordinator and the case manager/social worker help to coordinate City services regarding homeless encampments and public information. Lastly, beginning in FY 2018/19, the City will be funding the StandUp for Kids Street Outreach Program where volunteer staff scout streets of Huntington Beach searching for youth who are currently unsheltered or unstably housed. StandUp for Kids serves teens and youth (ages 12 - 24) who are homeless, at-risk, aging-out of foster care, or runaways to equip them with the tools they need to transition from life on the street to a life of stability and opportunity. The Street Outreach program provides basic services (food, clothing, hygiene items, and survival kits) as well as medical assistance and compassionate mentoring. Addressing the emergency shelter and transitional housing needs of homeless persons The City has and will continue to address the emergency shelter and transitional housing needs of homeless and homeless families through support of homeless programs such as the Huntington Beach Youth Emergency Shelter, Interval House, and Mercy House. Through the City's Homeless Task Force, the City will also support the provision of emergency housing and services by Beach Cities Interfaith Services and the local faith-based community. The City has also created a Homeless Outreach Coordinator and a Homeless Case Manger position who are responsible for creating relationships with the homeless and to provide services with an eye toward bringing their homelessness to an end. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again In an ongoing effort to continue to address the needs of the homeless and those at risk of homelessness, the City will focus on the development of sustainable and effective programming, including: applying for short and long-term available funding; partnerships with experienced service providers capable of leveraging other funding; the ability to create or secure affordable housing; perform homeless case management; and engage the homeless through a street outreach component in order to better connect them to available services. The City’s goal is to expand on current homeless programs and activities with a greater emphasis on homeless veterans and families to assist with their successful transition toward self -sufficiency. HB -267-Item 12. - 55 Huntington Beach 2018/19 Annual Action Plan 51 In FY 2015/16, the also City entered into a subrecipient agreement with a nonprofit agency, Interval House, to operate a city-wide Tenant-Based Rental Assistance Program using tenant selection policies and criteria. The City gave local preference to households impacted by homelessness, persons at risk of homelessness, veterans, seniors, and victims of domestic violence in Huntington Beach. The program has, to date, provided rental assistance to 62 households and with continued funding into FY 2018/19, proposes to assist an additional 25 families. The City has also partnered with Mercy House to implement a second Tenant Based Rental Assistance program targeting low and very-low income seniors, veterans, and homeless. The program has provided assistance to 18 households to date. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. To help prevent homelessness and protect at-risk populations, Huntington Beach will continue to participate in the Orange County Continuum of Care System to provide assistance to persons at risk of becoming homeless. In addition, the City continues to pursue opportunities to expand its affordable housing inventory to benefit primarily low-income renters. The City does not receive Emergency Shelter Grants (ESG) or Housing Opportunities for Persons with AIDS (HOPWA) funding and therefore is not required to develop a discharge coordination policy. However, the City will continue to address a discharge coordination policy with the Orange County Housing Authority and the Continuum of Care Homeless Issues Task Force. HB -268-Item 12. - 56 Huntington Beach 2018/19 Annual Action Plan 52 AP-75 Barriers to affordable housing – 91.220(j) Introduction Huntington Beach has a strong history of supporting affordable housing. The City has adopted numerous provisions in its Zoning Ordinance that facilitate a range of residential development types and encourage affordable housing. In addition, the City and its former Redevelopment Agency have provided direct financial assistance to support affordable and mixed income housing projects. The loss of Redevelopment Housing Funds, which previously generated approximately $3 million per year for housing activities, will dampen the level of future affordable housing production in the City. In addition to funding constraints, the primary barrier to the provision of affordable housing in Huntington Beach is the lack of vacant land suitable for residential development. Separate owners of smaller parcels hold much of the underdeveloped and residentially zoned land in the City. This calls for alternative policy tools such as lot consolidation and/or demolition of existing older structures to accommodate higher density infill development. Through adoption of th e Downtown and Beach and Edinger Corridors Specific Plans, the City has provided opportunities for high density mixed use and residential infill. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Through the administration of the CDBG and HOME programs, every effort is made to remove barriers to affordable housing through agreements with for-profit and non-profit affordable housing developers. These efforts also include working with neighborhood residents to ensure affordable housing projects are acceptable. Ongoing monitoring of “for sale” affordable units is conducted by department staff by assuring that the affordable housing covenants are recorded on title when the unit is sold. To address the decline in sources of housing funds, the City will continue to advocate for and pursue federal, state, local and private funding sources for affordable housing. Additionally, as part of the City’s Housing Element update, the City must assess and to the extent feasible, mitigate, its governmental constraints to housing for lower and moderate-income households and persons with disabilities. The Housing Element addresses the City’s provisions for affordable housing, emergency shelters, transitional housing, and supportive housing. The HB -269-Item 12. - 57 Huntington Beach 2018/19 Annual Action Plan 53 following programs in the City's 2013-2021 Housing Element specifically address the variety of regulatory and financial tools used by the City to remove barriers and facilitate the provision of affordable housing: Program 2. Multi-family Acquisition/Rehabilitation through Non-Profit Developers Objective: Acquire, rehabilitate, and establish affordability covenants on 80 rental units. Program 7. Residential and Mixed-Use Sites Inventory Objective: Maintain current inventory of vacant and underutilized development sites, and provide to developers along with information on incentives. Program 8. Beach and Edinger Corridors Specific Plan Objective: Facilitate development through flexible, form based standards, and streamlined processing. Encourage affordable housing by requiring inclusionary units to be provided on-site, or within the Specific Plan, and providing additional incentives for increased percentages of affordable units. Program 10. Inclusionary Program and Housing Trust Fund Objective: Continue implementation and re-evaluate Ordinance to provide consistency with case law and market conditions. Establish in-lieu fee amount for projects between 10-30 units. Program 11. Affordable Housing Development Assistance Objective: Provide financial and regulatory assistance in support of affordable housing. Provide information on incentives to development community. Program 13. Affordable Housing Density Bonus Objective: Continue to offer density bonus incentives as a means of enhancing the economic feasibility of affordable housing development. Program 14. Development Fee Assistance Objective: Continue to offer fee reductions to incentivize affordable housing. Specify the waiver of 100% of application processing fees in the Code for projects with 10% extremely low-income units. Program 15. Residential Processing Procedures HB -270-Item 12. - 58 Huntington Beach 2018/19 Annual Action Plan 54 Objective: Provide non-discretionary development review within the Beach and Edinger Corridors Specific Plan. Adopt streamlined review procedures for multi-family development on a Citywide basis. HB -271-Item 12. - 59 Huntington Beach 2018/19 Annual Action Plan 55 AP-85 Other Actions – 91.220(k) Introduction Actions planned to address obstacles to meeting underserved needs The City of Huntington Beach has identified long-range strategies, activities and funding sources to implement the goals in the areas of housing and community development services for the benefit of the residents. • The City will continue to seek other resources and funding sources to address the biggest obstacle to meeting the community's underserved needs, which is the lack of funding and/or inadequate funding. • The City will look for innovative and creative ways to make its delivery systems more comprehensive and will continue existing partnerships with both for-profit and not-for- profit organizations. • The City will use HOME and CDBG funds to concentrate on both affordable rental housing, tenant-based rental housing, and homeowner rehabilitation programs. • The City is currently addressing certain housing needs with federal funds such as availability, condition, and fair housing practices to prevent homelessness. • The City is also addressing community development needs with federal funds such as infrastructure, improving public facilities and code enforcement. • The City is working with surrounding jurisdictions on a regional approach to meeting the underserved needs. Actions planned to foster and maintain affordable housing The City’s Consolidated Plan has identified the preservation of existing, and the creation of new, affordable housing as a priority need during the 2015/16 – 2019/20 timeframe. In May 2015, the City issued a Notice of Funding Availability (NOFA) identif ying nearly $2.5 million in available affordable housing funds. The City’s goal was to obtain proposals for affordable housing projects as well as a proposed Tenant-Based Rental Assistance (TBRA) program. The City identified homeless, those at risk of homelessness, veterans, seniors, and victims of domestic violence as the population for which the housing programs should be targeted. The NOFA was available on the City’s website and was disseminated to local CHDO’s in the area. The City received five (5) proposals: three (3) proposals for affordable housing projects, and two (2) proposals for TBRA programs. Because the May 2015 NOFA proved unsuccessful in negotiating the development of an affordable housing project, the City issued a new NOFA, after which it HB -272-Item 12. - 60 Huntington Beach 2018/19 Annual Action Plan 56 opted to work with the local CHDO, Orange County Community Housing Corporation (OCCHC) to develop a rental four-plex located at 7792 Barton Drive in Huntington Beach. The project was awarded $781,220 in HOME funding in October 2016 via substantial amen dment to the FY 2016/17 Annual Action Plan. The project is complete but for the final drawdown. In response to the solicitation for a tenant based rental assistance program provider, Interval House was selected to administer such a program in September 2015. Interval House was chosen because of its extensive experience in providing services to households impacted by domestic violence, and because it already works closely with the City’s Police Department in providing housing for eligible households. Additionally, Interval House implemented the City’s Homelessness Prevention and Rapid Re-Housing (HPRP) program, a similar federal funding program that provided assistance to homeless and at at-risk persons to alleviate homelessness and provide rapid re-housing. During FY 2018/19, the City will continue to work with Interval House to provide tenant-based rental assistance to an additional 25 households. The program will continue to target homeless, persons at risk of homelessness, veterans, seniors, and victims of domestic violence in Huntington Beach. The City has also partnered with Mercy House to implement a second Tenant Based Rental Assistance program targeting low and very-low income seniors, veterans, and homeless. The program has provided assistance to 18 households to date and the program will continue through the end of FY 2017/18. The City is still committed to reviewing proposals for affordable housing projects and is currently considering two potential projects that will provide rent-restricted units to homeless persons. Staff would like to see the projected include wrap-around services for these homeless persons. One project being considered will be located within the City, while the other project is located in Midway City. Finally, in past years, the City has provided funding support to local public service agencies such as AIDS Services Foundation that address the service needs of the homeless and those at risk of becoming homeless. However, continued reductions in the City’s CDBG entitlements have resulted in the cutback of such funding support in recent years. The City hopes to reinstate funding support in the future should CDBG entitlement amounts sufficiently increase to allow for HB -273-Item 12. - 61 Huntington Beach 2018/19 Annual Action Plan 57 additional agencies to receive funding. Actions planned to reduce lead-based paint hazards As a means of better protecting children and families against lead poisoning, in 1999 HUD instituted revised lead-based paint regulations focused around the following five activities: • Notification • Lead Hazard Evaluation • Lead Hazard Reduction • Ongoing Maintenance • Response to Children with Environmental Intervention Blood Lead Level The City has implemented HUD Lead Based Paint Regulations (Title X), which requires federally funded rehabilitation projects to address lead hazards. Lead-based paint abatement is part of the City's Residential Rehabilitation Program and the Acquisition/Rehabilitation of Affordable Rental Housing Program. Units within rental housing projects selected for rehabilitation are tested if not statutorily exempt. Elimination or encapsulation remedies are implemented if lead is detected and is paid for by either the developer of the project, or with CDBG or HOME funds, as appropriate. To reduce lead-based paint hazards in existing housing, all housing rehabilitation projects supported with federal funds are tested for lead and asbestos. When a lead -based paint hazard is present, the City or the City’s sub-grantee contracts with a lead consultant for abatement or implementation of interim controls, based on the findings of the report. Tenants are notified of the results of the test and the clearance report. In Section 8 programs, staff annually inspects units on the existing program and new units as they become available. In all cases, defective paint surfaces must be repaired. In situations where a unit is occupied by a household with children under the age of six, corrective actions will include testing and abatement if necessary, or abatement without testing. Actions planned to reduce the number of poverty-level families The City’s major objectives in reducing poverty within Huntington Beach are to: • Reduce the number of families on welfare; • Reduce the number of families needing housing subsidies; and • Increase economic opportunities for low and moderate-income persons. HB -274-Item 12. - 62 Huntington Beach 2018/19 Annual Action Plan 58 The City’s anti-poverty strategy seeks to enhance the employability of residents through the promotion and support of programs which provide employment training and supportive services, while expanding employment opportunities through the support of programs supporting business development and employment and its recently-completed Economic Development Strategy. In terms of employment training and supportive services, the City supports literacy programs for families (Oakview Family Literacy Program) with a combination of General Funds and CDBG that help enhance the employability of low income persons with deficient English speaking, reading, and writing skills. As funding permits, the City will continue to support the following Public Services to increase family stability for lower income households: • Counseling • Domestic Violence Prevention Services • Provision of food • Substance Abuse Services • Job Training Lastly, the City of Huntington Beach supports a variety of economic development activities that help to create and retain jobs for low- and moderate-income households. Activities supported include a commercial property locator; employment assistance including of a referral service for finding and training employees; financial assistance through the Small Business Administration; business counseling and training via a litany of not-for-profit Orange County agencies; technical assistance in permits, trademarks, environmental review, and taxes; and export and trade assistance. Micro-enterprise assistance, job training services, and technical assistance are some areas that may warrant consideration for funding during the Consolidated Plan period. The City will fully comply with Section 3 of the Housing and Community Development Act, which helps foster local economic development and individual self-sufficiency. This set of regulations require that to the greatest extent feasible, the City will provide job training, employment, and contracting opportunities for low or very low-income residents in connection with housing and public construction projects. HB -275-Item 12. - 63 Huntington Beach 2018/19 Annual Action Plan 59 Actions planned to develop institutional structure As the recipient of CDBG and HOME funds, the City has delegated the Office of Business Development to be the lead department responsible for the overall administration of HUD grants. In that regard, the Division will prepare the Consolidated Plan and Analysis of Impediments to Fair Housing Choice every five years, draft the Annual Action Plan and CAPER, as well as all other reports required by federal rules and regulations. The City will work with non-profit agencies, for-profit developers, advocacy groups, clubs, and organizations, neighborhood leadership groups, City departments and with the private sector to implement the City’s five-year strategy to address the priority needs outlined in the Consolidated Plan for Fiscal Years 2015/2016 – 2019/2020. Engaging the community and stakeholders in the delivery of services and programs for the benefit of low to moderate residents will be vital in overcoming gaps in service delivery. The City will also utilize public notices, Community Workshops and Meetings (as appropriate), the City’s website, and other forms of media to deliver information on carrying out the Consolidated Plan strategies. Actions planned to enhance coordination between public and private housing and social service agencies In an ongoing effort to bridge the gap of various programs and activities, the City has developed partnerships and collaborations with local service providers and City departments that have been instrumental in meeting the needs and demands of the homeless, low income individuals and families, and other special needs. Over the years, the City has expanded partnerships and created new ones along the way. The array of partners include, but are not limited to: the Huntington Beach Police Department, Library Services, Community Services, and Public Works Departments; American Family Housing, Habitat for Humanity, Interval House, Mercy House, Collete’s Children’s Home, and AMCAL; Orange County Community Housing Corporation; Jamboree Housing; Community SeniorServ; AIDS Services Foundation; Project Self Sufficiency; Alzheimer’s Family Services; Fair Housing Foundation; the Orange County Housing Authority; and 2-1-1 Orange County and OC Community Services (Orange County Continuum of Care). During FY 2018/19, the City will continue to develop these partnerships. HB -276-Item 12. - 64 Huntington Beach 2018/19 Annual Action Plan 60 Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l) (1,2,4) Introduction The City of Huntington Beach participates in HUD's CDBG Program that is used for creating decent affordable housing, suitable living environments, and economic opportunities. The new program year (2018/19) will begin on July 1, 2018. The FY 2018/19 CDBG allocation is estimated to be $1,033,767 which will be used to implement CDBG projects and programs during the program year. The entitlement amount may increase or decrease from 0% to 20% depending on the f inal FY 2018 budget Congress approves. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan $0 3. The amount of surplus funds from urban renewal settlemen ts $0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0 5. The amount of income from float-funded activities $0 Total Program Income $0 Other CDBG Requirements 1. The amount of urgent need activities $0 HB -277-Item 12. - 65 Huntington Beach 2018/19 Annual Action Plan 61 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) The City of Huntington Beach participates in HUD’s HOME Program that can be used to promote affordable housing in the City through activities such as rental housing development and tenant- based rental assistance. The 2018/19 Program Year will commence on July 1, 2018. The FY 2018/19 HOME allocation is estimated to be $411,664, and along with prior year funds of $771,778, and $50,000 in program income, the City will have $1,233,442 available to implement HOME projects and programs during the program year. The final HOME entitlement amount may increase or decrease from 0% to 20% depending on the final FY 2018 budget Congress approves. 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City will provide grants, interest-bearing and non-interest-bearing deferred payment loans or residual receipts loans permitted under 24 CFR 92.206 (b) (1). The City will not institute other forms of investment forms not described in the aforemention ed section nor provide loan guarantees described under 24 CFR 92.206 (b) (21). 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The City is not administering a homebuyer program with CDBG or HOME funds as part of its 2017/18 Annual Action Plan. The Annual Plan, therefore, does not describe resale or recapture guidelines as required in 92.254. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: The City is not administering a homebuyer program with CDBG or HOME funds as part of its 2017/18 Annual Action Plan. The Annual Plan, therefore, does not describe resale or recapture guidelines that ensure the affordability of units acquired with HOME funds as required in 92.254 (a)(4). 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City is not proposing to use HOME funds to refinance existing debt secured by multifamily housing rehabilitated with HOME funds. Thus, since the City does not propose to undertake refinancing, the City is not required to discuss its financing guidelines required under 24 CFR 92.206(b). HB -278-Item 12. - 66 APPENDIX A CERTIFICATIONS HB -279-Item 12. - 67 APPENDIX B APPLICATION FOR FEDERAL ASSISTANCE (SF 424) FOR CDBG PROGRAM When the City receives the final allocation from Housing and Urban Development, the application will be prepared. HB -280-Item 12. - 68 APPENDIX C APPLICATION FOR FEDERAL ASSISTANCE (SF 424) FOR HOME PROGRAM When the City receives the final allocation from Housing and Urban Development, the application will be prepared. HB -281-Item 12. - 69 APPENDIX D PUBLIC NOTICES HB -282-Item 12. - 70 April 19, 2018 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA,) ) ss County of Orange I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the Huntington Beach Wave, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on July 1, 1998, Case No. A-185906 in and for the City of Huntington Beach, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: April 5, 19, 2018 "I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct": Executed at Santa Ma, Orange County, California, on Signature Huntington Beach Wave 2190 S. Towne Centre PI. Anaheim, CA 92806 (714) 796-2209 Proof of Publication CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC COMMENT PERIOD AND PUBLIC HEARING FY 2018-2019 ANNUAL ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAMS NOTICE IS HEREBY GIVEN that on May 7, 2018, at 6:00 PM or shortly thereafter, the City Council will hold a public hearing approv- ing the FY 2018-2019 Annual Action Plan and will accept public com- ments on the use of Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) funds. The meeting will be held at 6:00 PM, or soon thereafter, at the Huntington Beach Civic Center, City Council Chambers, located at 2000 Main Street, Hunting- ton Beach, California 92648. The City must annually submit an Annual Action Plan (AAP) to the US Department of Housing and Urban Development (HUD), which specifies the activities that will be undertaken to meet the goals iden- tified in the 2015-2019 Consolidated Plan. The AAP is due to HUD by May 15, 2018, and is subject to review and approval by HUD. The City of Huntington Beach expects to receive approximately $1,033,767 in CDBG and $411,664 in HOME funds for FY 2018-2019 from HUD. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): CDBG funds are designed to assist the City in its efforts to provide decent housing, a suitable living environment, community services and fa- cility needs, and expand economic opportunities for primarily low- and-moderate income persons. The City may allocate a maximum of 15 percent (15%) of the annual CDBG funds to public service provid- ers. Therefore, approximately $155,065 Is available to public service providers in FY 2018-2019. The remainder of funds may be allocated to capital proiects or capital Improvements, and to administrative costs which are limited to 20 percent (20%). Funds remaining from prior projects completed under budget may be allocated to supple- mental City-initiated capital projects. Funding allocations as rec- ommended to the City Council by the Citizen Participation Advisory Board Is proposed for FY 2018-2019 as follows: CDBG Administration 1$22210370606i,5r7355633 Fair Housing Foundation $ TOTAL ADMIN: Section 108 Loan TOTAL SECTION 108: Housing Rehab Loan Administration 65,000 Special Code Enforcement 190,000 TOTAL HOUSING: 255,000 City of HO-Community Services Dept/Oak View Community Center, Children's Bureau $ 40,000 City of HB -Community Services Dept/ $ 40,000 Senior Care Management City of HB HO PD- Homeless Outreach $ 60,065 City of HB - Library Services/ $ 10,000 Oak View Family Literacy Program StandUp for Kids OC -Street Outreach $ 5,000 TOTAL PUBLIC SERVICES: $155,065 City of HB - Public Works Dept/ Central Library ADA Restrooms Renovation $168,913 GRID Alternatives Greater Los Angeles $ 27,500 TOTAL PUBLIC IMPROVEMENTS: $196,413 2017-2018 CDBG PROJECTS: $1,033,767 HOME: The 2018-2019 estimated allocation of $411,664, minus the maximum of ten percent (10%) for program administration costs, will be allocated at a future date to qualified proiects. The City Council has established a Citizens Participation Advisory Board (CPAB) to review public service provider applications for 2018-2019 CDBG funds. The CPAB met on February 15 and March 1, 2018 to hear presentations from applicants and prepare funding rec- ommendations and held public hearings on community needs on Jan- uary 4, 2018 and February 1, 2018. The recommendations of CPAB were presented at a Joint Study Session with City Council on April 2, 2018 and will be considered for adoption at the May 7, 2018 City Coun- cil meeting. At that time, the City Council will approve funding levels for Public Service, Administration, Public Improvements, and Hous- ing Projects in the Annual Action Plan for 20113-2019, and final docu- ments will be submitted to HUD by May 15, 2018. The City will make the Draft Annual Action Plan for FY 2018-2019 available for a 30-day public review period starting on April 5, 2018 through May 7, 2018. The purpose of the review period is to provide the public an opportunity to comment on the planned expenditures of approximately $1.5 million annually in CDBG and HOME funds for HUD-eligible activities. Copies .of the individual plans will be availa- ble at the Huntington Beach Central Library (7111 Talbert Avenue); Oak View Branch Library (17251 Oak Lane); the Office of Business Development at Huntington Beach City Hall (2000 Main Street, 5th Floorl; and online at: http:OuntIngtonbeachca.gov/business/economic-development/cdbg/ . Written comments can be addressed to Robin Estanislau, Office of the City Clerk, City of Huntington Beach, 2000 Main Street, Hunting- ton Beach, California 92648. Public comments can be made during the 30-day public review period, as well as at the public hearing on May 7, 2018. The City Council will consider all comments received meeting. MEETING 30-day public review period at the May 7, 2018 City Council MEETING ASSISTANCE NOTICE - AMERICANS WITH DISABILI- TIES ACT: In accordance with the Americans with Disabilties Act, If you need special assistatnce to participate in the Public Heading / Council Meeting (not including transportation), Please call 72 hours prior to the meeting (714) 536-5582. To be published on April 5, 2018 and April 19, 2018 Published: The Huntington Beach Wave 11100191 FOWL MUSING OPPORTUNITY•. HB -283-Item 12. - 71 APPENDIX E CITIZEN PARTICIPATION COMMENTS HB -284-Item 12. - 72 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 1 CITIZEN PARTICIPATION ADVISORY BOARD PUBLIC HEARING ON COMMUNITY NEEDS/PRIORITIES Date: January 4, 2018, 6:00 pm Attendees: CPAB 1. Peter Andres 2. Shelly Grace-Bowers 3. Chris Byrne 4. Ken Evans 5. Mike Massie 6. Paul Morrow 7. Donna Traversi Huntington Beach City Staff: 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant, Administrative Analyst Public Comments • Michelle Yerke, on behalf of the Senior Outreach Program. She indicated that through the City’s CDBG allocation the program provides support to the City’s frail, homebound elderly seniors so that they may remain in their homes. • Chris Slama, on behalf of the Department of Community Services said he will facilitate the Senior Outreach and Children’s Bureau application submittals. HB -285-Item 12. - 73 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 2 CITIZEN PARTICIPATION ADVISORY BOARD PUBLIC HEARING ON COMMUNITY NEEDS/PRIORITIES Date: February 1, 2018, 6:30 pm Attendees: CPAB 1. Peter Andres 2. Shelly Grace-Bowers 3. Chris Byrne 4. Paul Morrow 5. Donna Traversi Huntington Beach Staff 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant Public Comments • Irene Briggs, on behalf of the Family Literacy Program • Alicia Cruz, on behalf of the Boys and Girls Club Afterschool Recreation Program • Michelle Yerke, on behalf of the Senior Outreach Program • Laurie Moncrief, on behalf of Family Literacy Program • Alejandra Morales, on behalf of the Boys and Girls Club Afterschool Recreation Program • Kelsy Maldonado, on behalf of the Boys and Girls Club Afterschool Recreation Program • Olivia Flores, on behalf of the Boys and Girls Club Afterschool Recreation Program • Martha Valencia, on behalf of Family Literacy Program • Ned Lazaro, on behalf of Family Literacy Program • Lorena Loya, on behalf of the Family Literacy Program • Marisol Lezuma, on behalf of the Boys and Girls Club Afterschool Recreation Program • Claudia Soriano, on behalf of Family Literacy Program • Colomba Garcia, on behalf of the Family Literacy Program • Joan Gillinger, on behalf of the Family Literacy Program • Sandra Mendez, on behalf of the Family Literacy Program HB -286-Item 12. - 74 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 3 CITIZEN PARTICIPATION ADVISORY BOARD MEETING Date: February 15, 2018, 6:00 pm Attendees: CPAB 1. Peter Andres 2. Chris Byrne 3. Ken Evans 4. Paul Morrow 5. Donna Traversi Huntington Beach City Staff: 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant, Administrative Analyst Public Comments 2018/19 Community Development Block Grant application presentations – Presentations were made by the applicants scheduled for the evening and various questions were asked by CPAB members and answered by the applicants. Presentations were made as follows: • Fair Housing Foundation – Kellee Fritzal announced that Fair Housing Council was not able to attend meeting, due to illness. • Amy Crepeau, representing the Oak View Branch Library, with a request of $10,000 for the Oakview Family Literacy Program. • Jerry Thompson of the Huntington Beach Public Works Department, with a request of $314,500 for Central Library ADA Restrooms Renovation. • Rich Massi and Devin Appel of the Community Development Departmen t representing Code Enforcement, with a request of $241,248 for Special Code Enforcement in the Oak View community and other designated CDBG areas. • Buffy Moelke, representing Community Senior Serv, Inc., with a request of $20,000 for the Congregate Lunch Program and $20,000 for the Home Delivered Meals Program. • Madeline Hirneise, representing Families Forward – Landlord Recruitment & Housing HB -287-Item 12. - 75 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 4 Navigation for Homeless Families, with a request of $45,000 for Landlord recruitment and housing navigation services by a Housing Resource Specialist. • Deb Johnson and Emily English representing Second Chance Orange County, with a request of $20,000 for staffing costs providing job training services to low-income and homeless, sober individuals with past drug and alcohol addiction. • Justine Palmore, representing StandUp for Kids Orange County, with a request of $15,124 for supplies and necessities for servicing homeless/at risk youth in Huntington Beach. • Denise Bazant, of the Office of Business Development, with a request of $65,000 for administration of the Housing Rehabilitation Loan program. HB -288-Item 12. - 76 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 5 CITIZEN PARTICIPATION ADVISORY BOARD MEETING Date: March 1, 2018, 6:00 pm Attendees: CPAB 1. Peter Andres 2. Shelly Grace-Bowers 3. Chris Byrne 4. Ken Evans 5. Mike Massie 6. Paul Morrow 7. Donna Traversi Huntington Beach City Staff 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant, Administrative Analyst Public Comments 2018/19 Community Development Block Grant application presentations were made by the applicants scheduled for the evening and various questions were asked by CPAB members and answered by the applicants. Presentations were made as follows: HB -289-Item 12. - 77 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 6 JOINT CPAB / CITY COUNCIL STUDY SESSION MEETING Date: April 2, 2018, 6:00 pm Attendees: City Council Members CPAB Members 1. William O’Connell 2. Lyn Semeta 3. Erik Peterson 4. Mike Posey 5. Barbara Delgleize 6. Jill Hardy 7. Patrick Brenden 1. Peter Andres 2. Shelly Grace-Bowers 3. Chris Byrne 4. Ken Evans 5. Mike Massie 6. Paul Morrow 7. Donna Traversi Huntington Beach City Staff 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant, Administrative Analyst Public Comments HB -290-Item 12. - 78 Huntington Beach Citizen Participation Comments 2018/19 Annual Action Plan 7 CITY COUNCIL PUBLIC HEARING Date: May 5, 2018, 6:00 pm Attendees: City Council Members Huntington Beach City Staff 1. Office of Business Development – Kellee Fritzal, Deputy Director 2. Office of Business Development – Denise Bazant, Administrative Analyst Public Comments HB -291-Item 12. - 79 City of Huntington Beach May 7, 2018 HB -292-Item 12. - 80 2018-19 ANTICIPATED CDBG ALLOCATIONS Community Development Block Grant: $1,033,767$1,033,767 HOME Program: $411,664HB -293-Item 12. - 81 CDBG ALLOCATION PROCESS Application period of December 2017 to January 2018 Two public hearings CPAB reviewed all applications and heard presentations from applicantsTwo public hearings held on community needs (City Hall/Oakview) from applicants Joint Study Session with City Council on April 2, 2018HB -294-Item 12. - 82 HB -295-Item 12. - 83 Public Services: 15% Cap Public Services 2017/18 Award 2018/19 Request 2018/19 Recommendation CS Department – Oakview FRC Afterschool Rec. $40,000 $55,000 $40,000 CS Department –Senior CS Department –Senior Care Management $40,000 $44,000 $40,000 HBPD/OBD – Homeless Outreach $60,812 $95,000 $60,812* HB Public Library – Oakview Family Literacy $ 9,253 $10,000 $9,253 *City Council recommended allocation of $60,812 for Homeless Outreach and $9,253 Oak View LiteracyHB -296-Item 12. - 84 Public Services: 15% Cap (Cont.) Public Services 2017/18 Award 2018/19 Request 2018/19 Recommendation StandUp for Kids OC – Street Outreach Team $0 $15,124 $5,000 OCCHC –Stepping Up OCCHC –Stepping Up Program $5,000 $0 N/A Community SeniorServ – Congregate Meals $0 $20,000 $0 Community SeniorServ – Home Delivered Meals $0 $20,000 $0HB -297-Item 12. - 85 Public Services: 15% Cap (Cont.) Public Services 2017/18 Award 2018/19 Request 2018/19 Recommendation Families Forward – Landlord Recruitment & Housing Navigation for Homeless Families N/A $45,000 $0 Second Chance OC - More Second Chances in HB N/A $20,000 $0 Community for Innovation, Entrepreneurship, Leadership & Opportunities (CIELO) – Economic Achievement Program N/A $40,000 $0 TOTAL: $155,065 $364,124 $155,065HB -298-Item 12. - 86 Admin, Housing & Code Enf. 2018/19 Request 2018/19 Recommendation CDBG Administration $176,753 $176,753 Fair Housing Foundation (within Administration Budget)$30,000 $30,000(within Administration Budget)$30,000 $30,000 Section 108 Loan $220,536 $220,536 Special Code Enforcement $241,248 $190,000 * Housing Rehabilitation Loan Program Administration $65,000 $65,000 TOTAL: $733,537 $682,289 * Actual amount for personnel costsHB -299-Item 12. - 87 Public Improvements Public Improvements 2017/18 Award 2018/19 Request 2018/19 Recommendation HB PW Department / Central Library ADA Restrooms Renovation N/A $314,500 $196,413Restrooms Renovation N/A $314,500 $196,413 GRID Alternatives Greater Los Angeles N/A $55,000 $0 TOTAL: $369,500 $196,413 *City Council recommended allocation of $196,413 to the Central Library ADA Restroom Renovation and not funding GRID AlternativesHB -300-Item 12. - 88 Next Steps Approve Annual Action Plan and submit to HUD by May 15, 2018 Staff will continue to monitor development of the 2018/19 Federal Budget for future impacts on CDBG/HOME and refer any changes to the allocation funding to EDCHB -301-Item 12. - 89 Dept. ID CD 18-005 Page 1 of 3 Meeting Date: 5/7/2018 Statement of Issue: Transmitted for City Council consideration is Zoning Text Amendment (ZTA) No. 18-001 to amend Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to establish a conditional use permit approval process to permit the ancillary on-site sale, service, and consumption of alcohol within the Open Space – Parks and Recreation zoning district. ZTA No. 18-001 was approved by the Planning Commission on April 10, 2018. The Planning Commission and staff recommend approval of ZTA No. 2018-001 with findings for approval. Financial Impact: Not applicable. Recommended Action: A) Find the proposed project exempt from the California Environmental Quality Act (CEQA) pursuant to City Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act (Attachment No.1); and, B) Approve Zoning Text Amendment No. 18-001 with findings by approving for introduction Ordinance No. 4156, “An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance Titled OS Open Space District (Zoning Text Amendment No. 18-001.” Alternative Action(s): The City Council may make the following alternative motion(s): A. Deny Zoning Text Amendment No. 18-001. B. Continue Zoning Text Amendment No. 18-001 and direct staff accordingly. Analysis: A. PROJECT PROPOSAL: CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Jane James, Interim Director of Community Development SUBJECT: Approve for Introduction Ordinance No. 4156 approving Zoning Text Amendment (ZTA) No. 18-001 amending Section 213.06 of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) (Ancillary Alcohol Sales in OS-PR Zoning District) HB -302-Item 13. - 1 Dept. ID CD 18-005 Page 2 of 3 Meeting Date: 5/7/2018 Applicant: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648 Location: Citywide ZTA No. 18-001 is a City-initiated request to amend Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to establish a Conditional Use Permit approval process to permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR zoning district. ZTA No. 18-001 includes a provision which limits the service of alcohol only to restaurants with full table service located within Central Park or in public/private golf courses. There are two locations in Central Park that are eligible to apply for a conditional use permit as a result of ZTA No. 18-001: Kathy May’s Lake View Café and Park Bench Café. There are several other types of establishments that do not qualify to apply for a CUP, such as snack stands, walk-up counters, concession stands, or other similar operations typically found at the Sports Complex, community parks, little league baseball fields, Friday night lights flag football, Frisbee golf, or the Library. These types of services do not meet the prerequisite of being a restaurant with full table service which precludes them from applying for a CUP. B. BACKGROUND At the January 16, 2018 City Council meeting, Councilmember Brenden submitted a Councilmember Items request directing City Staff to research code amendments in order to allow beer and wine service at restaurants with full table service located within the OS-PR Zone. The Councilmember Items request resulted in Zoning Text Amendment (ZTA) No. 2018-001 to amend the HBZSO to establish a conditional use permit process to permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR zoning district. C. PLANNING COMMISSION MEETING AND RECOMMENDATION: The Planning Commission held a public hearing on Zoning Text Amendment No. 18-001 on April 10, 2018. During the public hearing, staff gave an overview of the proposed amendment. There was one public speaker during the public hearing who expressed support for the proposed amendment because the location of alcohol service would be limited to Central Park and public/private golf courses. Three letters of support were also received. The Planning Commission voted to recommend that the City Council approve Zoning Text Amendment No. 18-001 based on the findings provided in Attachment No. 1. Planning Commission Action dated April 10, 2018 A MOTION WAS MADE BY KALMICK, SECONDED BY GRANT TO APPROVE ZONING TEXT AMENDMENT NO. 18-001 AND FORWARD TO CITY COUNCIL BY THE FOLLOWING VOTE: AYES: CROWE, GARCIA, SCANDURA, MANDIC, KALMICK, GRANT NOES: NONE ABSTAIN: NONE ABSENT: RAY MOTION PASSED D. STAFF ANALYSIS AND RECOMMENDATION: ZTA No. 18-001 includes a provision which limits beer and wine service only to restaurants with full table service located within Central Park. There are currently two locations within Central Park that could apply for a Conditional Use Permit as a result of ZTA No. 2018-001: Kathy May’s Lake View Café and Park Bench Café. Snack stands, walk-up counters, concession stands, or other similar HB -303-Item 13. - 2 Dept. ID CD 18-005 Page 3 of 3 Meeting Date: 5/7/2018 operations typically found at the Sports Complex, community parks, little league baseball fields, Friday night lights flag football, Frisbee golf, or the Central Library do not meet the prerequisite of being a restaurant with full table service and would not be allowed to apply for a CUP. Further, an additional provision is provided to limit the location of full alcohol service to within public/private golf courses in the OS-PR Zoning District. Two existing golf courses (Seacliff Country Club Golf Course and Meadowlark Golf Course) currently hold ABC Type 47 (On-Sale General) Licenses and were established prior to the City’s requirement to obtain a conditional use permit for alcohol service. The golf course provision is included as part of ZTA No. 18-001 in order to avoid precluding the golf courses from utilizing their existing ABC licenses for alcohol service. The Office of Business Development supports the establishment of a CUP process to permit ancillary on-site alcohol service because, “the restaurants in Central Park would need to have a Lease with the City of Huntington Beach and the City would allow the application for a permit from the City and ABC if they are in ‘good-standing’ with the City.” The Police Department recommends that future CUPs include conditions of approval to prohibit packaged sales of alcohol and increase preventative security measures such as video and alarm systems, lighting, and securing alcohol after hours. Any new request for alcohol service resulting from ZTA No. 18-001 will be subject to property owner approval and approval of a conditional use permit heard by the Zoning Administrator, which includes a public hearing and public notification of the hearing. The Planning Commission recommends that the City Council approve Zoning Text Amendment No. 18-001 with findings for approval. The legislative drafts and draft ordinances (Attachment No. 2) provide the updated language to be added to the HBZSO. The Planning Commission and staff recommend approval of ZTA No. 18-001 because it will facilitate the success of eating and drinking establishments in Central Park and public/private golf courses by establishing a conditional use permit process to permit the ancillary on-site sale of alcoholic beverages within the OS-PR Zoning District in a safe manner for customers and residents of the surrounding area. Environmental Status: ZTA No. 18-001 is categorically exempt pursuant to City Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act. Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Suggested Findings of Approval – ZTA No. 18-001 2. Ordinance No. 4156, “An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance Titled OS Open Space District.” 3. HBZSO Legislative Drafts 4. Planning Commission Staff Report dated April 10, 2018 HB -304-Item 13. - 3 ATTACHMENT NO. 1 SUGGESTED FINDINGS FOR APPROVAL ZONING TEXT AMENDMENT NO. 18-001 SUGGESTED FINDINGS FOR APPROVAL - ZONING TEXT AMENDMENT NO. 18-001: 1. Zoning Text Amendment No. 18-001 amends Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance to eliminate references to establish a Conditional Use Permit approval process to permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR zoning district. ZTA No. 18-001 is consistent with the goals and policies of the City’s General Plan as follows: Land Use Element Goal LU-11: Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11 (A): Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B): Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility. ZTA No. 18-001 will facilitate the success of eating and drinking establishments in Central Park and public/private golf courses by establishing a Conditional Use Permit process to permit the ancillary on-site sale of alcoholic beverages within the OS-PR Zoning District in a safe manner for customers and residents of the surrounding area. ZTA No. 18-001 limits the service of beer and wine to eating and drinking establishments within Central Park and limits full alcohol service to public/private golf courses. Conditions will be added to any new request for alcohol service which limit the use and manner in which alcohol may be sold and consumed. 2. Zoning Text Amendment No. 18-001 does not affect the general land use provision or compatibility with the uses authorized in, and the standards prescribed for, any of the zoning districts for which it is proposed. Zoning Text Amendment No. 18-001 will establish a Conditional Use Permit review process for the ancillary on-site sales of alcohol within the OS-PR Zoning District. It will not affect zoning of any property or development standards of any zoning district. 3. A community need is demonstrated for the proposed amendment in order to permit the ancillary on- site sales of alcohol within the OS-PR Zoning District. Zoning Text Amendment No. 18-001 will reflect the City’s desired approval process for ancillary on-site alcohol sales in consideration of maximizing the goals of the General Plan. The ancillary on-site service of alcohol will benefit and serve the existing establishments and residential uses in the vicinity. The addition of ancillary on-site alcohol sales is not anticipated to generate additional noise, traffic, or other impacts above existing conditions. HB -305-Item 13. - 4 4. Adoption of ZTA No. 18-001 will be in conformity with public convenience, general welfare and good zoning practice because the proposed changes will permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR Zone while protecting the community’s general welfare and quality of life through the Conditional Use Permit review process. HB -306-Item 13. - 5 Direc unity Development Sr Attorney INITIATED AND APPROVED: criAkiat ORDINANCE NO. 4156 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 213 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE TITLED OS OPEN SPACE DISTRICT (ZONING TEXT AMENDMENT NO. 18-001) WHEREAS, pursuant to the California State Planning and Zoning Law, the Huntington Beach Planning Commission and Huntington Beach City Council have held separate, duly noticed public hearings to consider Zoning Text Amendment No. 18-001, which amends Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS-PR zoning district; and After due consideration of the findings and recommendations of the Planning Commission and all other evidence presented, the City Council finds that the aforesaid amendment is proper and consistent with the General Plan, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance titled Definitions is hereby amended to read as set forth in Exhibit A. SECTION 2. All other provisions of Chapter 213 not modified herein shall remain in full force and effect. SECTION 3. This Ordinance shall become effective immediately 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2018. Mayor ATTEST: City Clerk REVIEWED AND APPROVED: City Manager Exhibit A: Legislative Draft 18-6322/175172/mv HB -307-Item 13. - 6 EXHIBIT A HB -308-Item 13. - 7 LEGISLATIVE DRAFT 03/30/2018 OS District Land Use Controls P = Permitted L = Limited (see Additional Provisions) PC — Conditional use permit approved by Planning Commission ZA = Conditional use permit approved by Zoning Administrator TU = Temporary Use Permit P/U Requires conditional use permit on site of conditional use - = Not Pennitted OS-PR OS-S OS-WR Additional Provisions Public and Semipublic (F) Marinas - - PC Park & Recreation Facilities PC PC - Public Safety Facilities - PC - Utilities, Major - - - Utilities, Minor ZA - ZA Commercial Uses (F) Animal Sales and Services Equestrian Centers PC - - (E) Commercial Recreation and Entertainment PC - - Communication Facilities L-4 Eating & Drinking Establishments Li Ll _ With Alcohol ZA - - L -5 With Take-Out Service, Limited Li L3 - Vehicle/Equipment Sales and Services - Commercial Parking Facility L2 L2 - Accessory Uses (A)(D) Accessory Uses and Structures P/U P/U P/U Temporary Uses (B) Animal Shows TU - - Circuses and Carnivals TU - - Commercial Filming TU TU TIJ HB -309-Item 13. - 8 LEGISLATIVE DRAFT 03/30/2018 Nonconforming Uses OS District: Additional Provisions L-1 Allowed with a conditional use permit approval by the Zoning Administrator only as an ancillary use that is compatible with and part of a park or recreational facility. Only in the coastal zone overlay district, in public parks in both the Parks and Recreation and the Shoreline Subdistricts, only the following type of eating and drinking establishment shall be permitted: take-out service establishments where patrons order and pay for their food at a counter or window before it is consumed and may either pick up or be served such food at a table or take it off-site for consumption; and persons are not served in vehicles. L-2 Public parking is permitted, but commercial parking facilities on City-owned land require a conditional use permit approval by the Planning Commission. Recreational vehicle overnight parking is limited to 10% of available public parking. No encroachment onto sandy beach area shall be permitted. L-3 Beach concession stands for sale of refreshments and sundries (not to exceed 2,500 square feet) must be located a minimum 1,000 feet apart. Beach concession structures shall be located within or immediately adjacent to paved parking or access areas. L-4 Only wireless communication facilities permitted subject to Section 230.96, Wireless Communication Facilities. L-5 Eating and drinking establishments with fill table service, with or without outdoor dining, located in Central Park may provide on-site sales, service and consumption of beer and wine upon obtaining a Conditional Use Permit approved by the Zoning Administrator. Public or private golf courses with or without outdoor dining, may provide the on-site sales, service and consumption of alcohol upon obtaining a Conditional Use Permit approved by the Zoning Administrator. (A) Limited to facilities incidental to an open space use. (B) See Section 241.22, Temporary Use Permits. (C) See Chapter 236, Nonconforming Uses and Structures. (D) Private cantilevered decks abutting residential uses; private boat ramps, slips, docks, windscreen and boat hoists in conjunction with adjacent single family dwellings. See Residential Districts and Chapter 17.24. (E) See Section 230.48, Equestrian Centers. (F) The permitted uses for recreation areas on the Huntington Beach mesa shall be limited to low- intensity uses including picnic grounds, arboretums, bird sanctuaries, trails. High-intensity uses such as tennis courts, athletic fields, stables, campgrounds or other commercial or recreation uses shall be conditional only, and shall be located in nodes adjacent to existing developed areas or roads and shall avoid adverse impacts on environmentally sensitive habitats. (3334-6/97, 3568-9102) HB -310-Item 13. - 9 LEGISLATIVE DRAFT 03/30/2018 OS District Land Use Controls P = Permitted L = Limited (see Additional Provisions) PC = Conditional use permit approved by Planning Commission ZA = Conditional use permit approved by Zoning Administrator TU = Temporary Use Permit P/U = Requires conditional use permit on site of conditional use - = Not Permitted OS-PR OS-S OS-WR Additional Provisions Public and Semipublic (F) Marinas - - PC Park & Recreation Facilities PC PC - Public Safety Facilities - PC - Utilities, Major - - - Utilities, Minor ZA - ZA Commercial Uses (F) Animal Sales and Services Equestrian Centers PC - - (E) Commercial Recreation and Entertainment PC - - Communication Facilities L-4 Eating & Drinking Establishments L1 L1 - With Alcohol ZA - - L-5 With Take-Out Service, Limited L1 L3 - Vehicle/Equipment Sales and Services - Commercial Parking Facility L2 L2 - Accessory Uses (A)(D) Accessory Uses and Structures P/U P/U P/U Temporary Uses (B) Animal Shows TU - - Circuses and Carnivals TU - - Commercial Filming TU TU TU HB -311-Item 13. - 10 LEGISLATIVE DRAFT 03/30/2018 Nonconforming Uses (C) OS District: Additional Provisions L-1 Allowed with a conditional use permit approval by the Zoning Administrator only as an ancillary use that is compatible with and part of a park or recreational facility. Only in the coastal zone overlay district, in public parks in both the Parks and Recreation and the Shoreline Subdistricts, only the following type of eating and drinking establishment shall be permitted: take-out service establishments where patrons order and pay for their food at a counter or window before it is consumed and may either pick up or be served such food at a table or take it off-site for consumption; and persons are not served in vehicles. L-2 Public parking is permitted, but commercial parking facilities on City-owned land require a conditional use permit approval by the Planning Commission. Recreational vehicle overnight parking is limited to 10% of available public parking. No encroachment onto sandy beach area shall be permitted. L-3 Beach concession stands for sale of refreshments and sundries (not to exceed 2,500 square feet) must be located a minimum 1,000 feet apart. Beach concession structures shall be located within or immediately adjacent to paved parking or access areas. L-4 Only wireless communication facilities permitted subject to Section 230.96, Wireless Communication Facilities. L-5 Eating and drinking establishments with full table service, with or without outdoor dining, located in Central Park may provide on-site sales, service and consumption of beer and wine upon obtaining a Conditional Use Permit approved by the Zoning Administrator. Public or private golf courses with or without outdoor dining, may provide the on-site sales, service and consumption of alcohol upon obtaining a Conditional Use Permit approved by the Zoning Administrator. (A) Limited to facilities incidental to an open space use. (B) See Section 241.22, Temporary Use Permits. (C) See Chapter 236, Nonconforming Uses and Structures. (D) Private cantilevered decks abutting residential uses; private boat ramps, slips, docks, windscreen and boat hoists in conjunction with adjacent single family dwellings. See Residential Districts and Chapter 17.24. (E) See Section 230.48, Equestrian Centers. (F) The permitted uses for recreation areas on the Huntington Beach mesa shall be limited to low- intensity uses including picnic grounds, arboretums, bird sanctuaries, trails. High-intensity uses such as tennis courts, athletic fields, stables, campgrounds or other commercial or recreation uses shall be conditional only, and shall be located in nodes adjacent to existing developed areas or roads and shall avoid adverse impacts on environmentally sensitive habitats. (3334-6/97, 3568-9/02) HB -312-Item 13. - 11 City of Huntington Beach Community Development Department STAFF REPORT TO: Planning Commission FROM: Jane James, Interim Director of Community Development BY: Nicolle Bourgeois, AICP, Assistant Planner DATE: April 10, 2018 SUBJECT: ZONING TEXT AMENDMENT NO. 18-001 (ANCILLARY ALCOHOL SALES IN OS-PR ZONING DISTRICT) APPLICANT: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648 LOCATION: OS-PR Zoning District STATEMENT OF ISSUE: ¤ Zoning Text Amendment (ZTA) No. 18-001 request: - To amend Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to establish a Conditional Use Permit approval process to permit the ancillary on-site sale, service, and consumption of alcohol within the OS-PR zoning district. ¤ Staff Recommendation: Approve Zoning Text Amendment No. 18-001 based upon the following: - Establishes the City’s desired approval process for ancillary on-site alcohol sales in the OS-PR zoning district. - Permits the ancillary on-site sales, service, and consumption of alcohol in the OS-PR zoning district while protecting the community’s general welfare and quality of life through the Conditional Use Permit process. - Does not alter the zoning designation on any property. RECOMMENDATION: Motion to: A. “Find the proposed project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to City Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act.”; and B. “Approve Zoning Text Amendment No. 18-001 with findings (Attachment No. 1) and forward Draft Ordinance No. XXXX (Attachment No. 2) to the City Council for adoption.” ALTERNATIVE ACTION(S); The Planning Commission may take alternative actions such as: HB -313-Item 13. - 12 PC Staff Report – 4/10/18 2 (18sr08 ZTA 18-001) A. “Deny Zoning Text Amendment No. 18-001 with findings for denial.” B. “Continue Zoning Text Amendment No. 18-001 and direct staff accordingly.” PROJECT PROPOSAL: Zoning Text Amendment No. 18-001 is a City initiated request to amend Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to establish a Conditional Use Permit review process for the ancillary on-site sales, service, and consumption of alcohol within the OS-PR Zoning District. Background: At the January 16, 2018 City Council meeting, Councilmember Brenden submitted an H-Item request directing City Staff to research code amendments in order to allow beer and wine service at restaurants with full table service located within the OS-PR Zone. The H-Item request resulted in Zoning Text Amendment (ZTA) No. 2018-001 to amend the HBZSO to establish a conditional use permit process to permit the ancillary sales, service, and consumption of alcohol within the OS-PR zoning district. Study Session: The request was presented to the Planning Commission for study session on March 27, 2018. The Planning Commission asked for a list of the potential establishments in Central Park that could request CUP approval for beer and wine service as a result of ZTA No. 18-001. The following establishments will have the ability to request CUP approval for beer and wine service as a result of ZTA No. 18-001: 1. Kathy May’s Lake View Café 2. Park Bench Café ISSUES: General Plan Conformance: Zoning Text Amendment No. 18-001 is consistent with the goals and policies of the City’s General Plan as follows: Land Use Element Goal LU-11: Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11 (A): Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B): Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility. HB -314-Item 13. - 13 PC Staff Report – 4/10/18 3 (18sr08 ZTA 18-001) ZTA No. 18-001 will facilitate the success of eating and drinking establishments with full table service in Central Park and public/private golf courses by establishing a Conditional Use Permit process to permit the ancillary on-site sales of alcoholic beverages within the OS-PR Zoning District in a safe manner for customers and residents of the surrounding area. ZTA No. 18-001 limits the service of beer and wine to eating and drinking establishments within Central Park and limits full alcohol service to public/private golf courses. Conditions will be added to any new request for alcohol service which limit the use and manner in which alcohol may be sold and consumed. Zoning Compliance: Not applicable. Urban Design Guidelines Conformance: Not applicable. Environmental Status: The proposed project is categorically exempt pursuant to City Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act. Coastal Status: ZTA No. 18-001 is considered a minor amendment to the City’s Local Coastal Program and will be forwarded to the California Coastal Commission with other minor amendments for certification. Design Review Board: Not applicable. Subdivision Committee: Not applicable. Other Departments Concerns and Requirements: The request was forwarded to the Community Services Department, Fire Department, Office of Business Development, and Police Department for review (Attachment No. 4). All reviewing departments supported the proposed amendment and additional details are provided in the Analysis section. Public Notification: Legal notice was published in the Huntington Beach Wave on March 22, 2018. As of April 5, 2018, two email communications supporting the request have been received (Attachment No. 5). The communications support limiting the location of alcohol service to Central Park and public/private golf courses. Application Processing Dates: DATE OF COMPLETE APPLICATION: MANDATORY PROCESSING DATE(S): Not Applicable Legislative Action - Not Applicable HB -315-Item 13. - 14 PC Staff Report – 4/10/18 4 (18sr08 ZTA 18-001) ANALYSIS: ZTA No. 18-001 includes a provision which limits beer and wine service only to restaurants with full table service located within Central Park. There are currently two locations within Central Park that could apply for a Conditional Use Permit. Snack stands, walk-up counters, concession stands, or other similar operations typically found at the Sports Complex, community parks, little league baseball fields, Friday night lights flag football, Frisbee golf, or the Library do not meet the prerequisite of being a restaurant with full table service and would not be allowed to apply for a CUP. Further, an additional provision is provided to limit the location of full alcohol service to within public/private golf courses in the OS-PR Zoning District. Two existing golf courses (Seacliff Country Club Golf Course and Meadowlark Golf Course) currently hold ABC Type 47 (On-Sale General) Licenses and were established prior to the City’s requirement to obtain a Conditional Use Permit for alcohol service. The golf course provision is included as part of ZTA No. 18-001 in order to avoid precluding the golf courses from utilizing their existing ABC licenses for alcohol service. The Office of Business Development supports the establishment of a CUP process to permit ancillary on-site alcohol service because, “the restaurants in Central Park would need to have a Lease with the City of Huntington Beach and the City would allow the application for a permit from the City and ABC if they are in “good-standing” with the City.” The Police Department recommends that future CUPs include conditions of approval to prohibit packaged sales of alcohol and increase preventative security measures such as video and alarm systems, lighting, and securing alcohol after hours. Any new request for alcohol service resulting from ZTA No. 18-001 will be subject to property owner approval and approval of a Conditional Use Permit heard by the Zoning Administrator, which includes a public hearing and public notification of the hearing. Staff recommends that the Planning Commission approve Zoning Text Amendment No. 18-001 and forward to the City Council for adoption. ATTACHMENTS: 1. Findings for Approval – Zoning Text Amendment No. 18-001 2. Draft Ordinance No. XXXX Amending HBZSO Chapter 213 OS Open Space District 3. Legislative Draft of proposed amendments to Section 213.06 of the HBZSO 4. Comments from other City Departments 5. Public Comments - Email communications JJ:nb HB -316-Item 13. - 15 Attachment No. 1.1 ATTACHMENT NO. 1 SUGGESTED FINDINGS FOR APPROVAL ZONING TEXT AMENDMENT NO. 18-001 SUGGESTED FINDINGS FOR APPROVAL - ZONING TEXT AMENDMENT NO. 18-001: 1. Zoning Text Amendment No. 18-001 amends Section 213.06 (OS District – Land Use Controls) of the Huntington Beach Zoning and Subdivision Ordinance to eliminate references to establish a Conditional Use Permit approval process to permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR zoning district. ZTA No. 18-001 is consistent with the goals and policies of the City’s General Plan as follows: Land Use Element Goal LU-11: Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11 (A): Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B): Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility. ZTA No. 18-001 will facilitate the success of eating and drinking establishments in Central Park and public/private golf courses by establishing a Conditional Use Permit process to permit the ancillary on-site sale of alcoholic beverages within the OS-PR Zoning District in a safe manner for customers and residents of the surrounding area. ZTA No. 18-001 limits the service of beer and wine to eating and drinking establishments within Central Park and limits full alcohol service to public/private golf courses. Conditions will be added to any new request for alcohol service which limit the use and manner in which alcohol may be sold and consumed. 2. Zoning Text Amendment No. 18-001 does not affect the general land use provision or compatibility with the uses authorized in, and the standards prescribed for, any of the zoning districts for which it is proposed. Zoning Text Amendment No. 18-001 will establish a Conditional Use Permit review process for the ancillary on-site sales of alcohol within the OS-PR Zoning District. It will not affect zoning of any property or development standards of any zoning district. 3. A community need is demonstrated for the proposed amendment in order to permit the ancillary on- site sales of alcohol within the OS-PR Zoning District. Zoning Text Amendment No. 18-001 will reflect the City’s desired approval process for ancillary on-site alcohol sales in consideration of maximizing the goals of the General Plan. The ancillary on-site service of alcohol will benefit and serve the existing establishments and residential uses in the vicinity. The addition of ancillary on-site alcohol sales is not anticipated to generate additional noise, traffic, or other impacts above existing conditions. HB -317-Item 13. - 16 Attachment No. 1.2 4. Adoption of ZTA No. 18-001 will be in conformity with public convenience, general welfare and good zoning practice because the proposed changes will permit the ancillary on-site sales, service, and consumption of alcohol within the OS-PR Zone while protecting the community’s general welfare and quality of life through the Conditional Use Permit review process. HB -318-Item 13. - 17 ORDINANCE NO. ______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 213 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE TITLED OS OPEN SPACE DISTRICT (ZONING TEXT AMENDMENT NO. 18-001) WHEREAS, pursuant to the California State Planning and Zoning Law, the Huntington Beach Planning Commission and Huntington Beach City Council have held separate, duly noticed public hearings to consider Zoning Text Amendment No. 18-001, which amends Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance to establish a conditional use permit process to permit the sales, service, and consumption of alcohol within the OS-PR zoning district. After due consideration of the findings and recommendations of the Planning Commission and all other evidence presented, the City Council finds that the aforesaid amendment is proper and consistent with the General Plan; NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance titled Definitions is hereby amended to read as set forth in Attachment 1. SECTION 2. All other provisions of Chapter 213 not modified herein shall remain in full force and effect. SECTION 3. This ordinance shall become effective immediately 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the ____ day of _______________, 2018. ____________________________ Mayor ATTEST: APPROVED AS TO FORM: ___________________________ ____________________________ City Clerk City Attorney HB -319-Item 13. - 18 REVIEWED AND APPROVED: INITIATED AND APPROVED: ___________________________ ____________________________ City Manager Director of Community Development Attachment 1: Legislative Draft HB -320-Item 13. - 19 HB -321-Item 13. - 20 LEGISLATIVE DRAFT 03/30/2018 OS District Land Use Controls P = Permitted L = Limited (see Additional Provisions) PC = Conditional use permit approved by Planning Commission ZA = Conditional use permit approved by Zoning Administrator TU = Temporary Use Permit P/U = Requires conditional use permit on site of conditional use - = Not Permitted OS-PR OS-S OS-WR Additional Provisions Public and Semipublic (F) Marinas - - PC Park & Recreation Facilities PC PC - Public Safety Facilities - PC - Utilities, Major - - - Utilities, Minor ZA - ZA Commercial Uses (F) Animal Sales and Services Equestrian Centers PC - - (E) Commercial Recreation and Entertainment PC - - Communication Facilities L-4 Eating & Drinking Establishments L1 L1 - With Alcohol ZA - - L-5 With Take-Out Service, Limited L1 L3 - Vehicle/Equipment Sales and Services - Commercial Parking Facility L2 L2 - Accessory Uses (A)(D) Accessory Uses and Structures P/U P/U P/U Temporary Uses (B) Animal Shows TU - - Circuses and Carnivals TU - - Commercial Filming TU TU TU HB -322-Item 13. - 21 LEGISLATIVE DRAFT 03/30/2018 Nonconforming Uses (C) OS District: Additional Provisions L-1 Allowed with a conditional use permit approval by the Zoning Administrator only as an ancillary use that is compatible with and part of a park or recreational facility. Only in the coastal zone overlay district, in public parks in both the Parks and Recreation and the Shoreline Subdistricts, only the following type of eating and drinking establishment shall be permitted: take-out service establishments where patrons order and pay for their food at a counter or window before it is consumed and may either pick up or be served such food at a table or take it off-site for consumption; and persons are not served in vehicles. L-2 Public parking is permitted, but commercial parking facilities on City-owned land require a conditional use permit approval by the Planning Commission. Recreational vehicle overnight parking is limited to 10% of available public parking. No encroachment onto sandy beach area shall be permitted. L-3 Beach concession stands for sale of refreshments and sundries (not to exceed 2,500 square feet) must be located a minimum 1,000 feet apart. Beach concession structures shall be located within or immediately adjacent to paved parking or access areas. L-4 Only wireless communication facilities permitted subject to Section 230.96, Wireless Communication Facilities. L-5 Eating and drinking establishments with full table service, with or without outdoor dining, located in Central Park may provide on-site sales, service and consumption of beer and wine upon obtaining a Conditional Use Permit approved by the Zoning Administrator. Public or private golf courses with or without outdoor dining, may provide the on-site sales, service and consumption of alcohol upon obtaining a Conditional Use Permit approved by the Zoning Administrator. (A) Limited to facilities incidental to an open space use. (B) See Section 241.22, Temporary Use Permits. (C) See Chapter 236, Nonconforming Uses and Structures. (D) Private cantilevered decks abutting residential uses; private boat ramps, slips, docks, windscreen and boat hoists in conjunction with adjacent single family dwellings. See Residential Districts and Chapter 17.24. (E) See Section 230.48, Equestrian Centers. (F) The permitted uses for recreation areas on the Huntington Beach mesa shall be limited to low- intensity uses including picnic grounds, arboretums, bird sanctuaries, trails. High-intensity uses such as tennis courts, athletic fields, stables, campgrounds or other commercial or recreation uses shall be conditional only, and shall be located in nodes adjacent to existing developed areas or roads and shall avoid adverse impacts on environmentally sensitive habitats. (3334-6/97, 3568-9/02) HB -323-Item 13. - 22 LEGISLATIVE DRAFT 03/30/2018 OS District Land Use Controls P = Permitted L = Limited (see Additional Provisions) PC = Conditional use permit approved by Planning Commission ZA = Conditional use permit approved by Zoning Administrator TU = Temporary Use Permit P/U = Requires conditional use permit on site of conditional use - = Not Permitted OS-PR OS-S OS-WR Additional Provisions Public and Semipublic (F) Marinas - - PC Park & Recreation Facilities PC PC - Public Safety Facilities - PC - Utilities, Major - - - Utilities, Minor ZA - ZA Commercial Uses (F) Animal Sales and Services Equestrian Centers PC - - (E) Commercial Recreation and Entertainment PC - - Communication Facilities L-4 Eating & Drinking Establishments L1 L1 - With Alcohol ZA - - L-5 With Take-Out Service, Limited L1 L3 - Vehicle/Equipment Sales and Services - Commercial Parking Facility L2 L2 - Accessory Uses (A)(D) Accessory Uses and Structures P/U P/U P/U Temporary Uses (B) Animal Shows TU - - Circuses and Carnivals TU - - Commercial Filming TU TU TU HB -324-Item 13. - 23 LEGISLATIVE DRAFT 03/30/2018 Nonconforming Uses (C) OS District: Additional Provisions L-1 Allowed with a conditional use permit approval by the Zoning Administrator only as an ancillary use that is compatible with and part of a park or recreational facility. Only in the coastal zone overlay district, in public parks in both the Parks and Recreation and the Shoreline Subdistricts, only the following type of eating and drinking establishment shall be permitted: take-out service establishments where patrons order and pay for their food at a counter or window before it is consumed and may either pick up or be served such food at a table or take it off-site for consumption; and persons are not served in vehicles. L-2 Public parking is permitted, but commercial parking facilities on City-owned land require a conditional use permit approval by the Planning Commission. Recreational vehicle overnight parking is limited to 10% of available public parking. No encroachment onto sandy beach area shall be permitted. L-3 Beach concession stands for sale of refreshments and sundries (not to exceed 2,500 square feet) must be located a minimum 1,000 feet apart. Beach concession structures shall be located within or immediately adjacent to paved parking or access areas. L-4 Only wireless communication facilities permitted subject to Section 230.96, Wireless Communication Facilities. L-5 Eating and drinking establishments with full table service, with or without outdoor dining, located in Central Park may provide on-site sales, service and consumption of beer and wine upon obtaining a Conditional Use Permit approved by the Zoning Administrator. Public or private golf courses with or without outdoor dining, may provide the on-site sales, service and consumption of alcohol upon obtaining a Conditional Use Permit approved by the Zoning Administrator. (A) Limited to facilities incidental to an open space use. (B) See Section 241.22, Temporary Use Permits. (C) See Chapter 236, Nonconforming Uses and Structures. (D) Private cantilevered decks abutting residential uses; private boat ramps, slips, docks, windscreen and boat hoists in conjunction with adjacent single family dwellings. See Residential Districts and Chapter 17.24. (E) See Section 230.48, Equestrian Centers. (F) The permitted uses for recreation areas on the Huntington Beach mesa shall be limited to low- intensity uses including picnic grounds, arboretums, bird sanctuaries, trails. High-intensity uses such as tennis courts, athletic fields, stables, campgrounds or other commercial or recreation uses shall be conditional only, and shall be located in nodes adjacent to existing developed areas or roads and shall avoid adverse impacts on environmentally sensitive habitats. (3334-6/97, 3568-9/02) HB -325-Item 13. - 24 CITY OF HUNTINGTON BEACH PROJECT IMPLEMENTATION CODE REQUIREMENTS DATE: FEBRUARY 8, 2018 PROJECT NAME: BEER AND WINE IN OS-PR ZONING DISTRICT PLANNING APPLICATION NO.: 2018-013 ENTITLEMENTS: ZONING TEXT AMENDMENT NO. 2018-001 PROJECT LOCATION: OS-PR ZONING DISTRICT WITHIN THE CITY OF HUNTINGTON BEACH PROJECT PLANNER: NICOLLE BOURGEOIS, ASSISTANT PLANNER PLAN REVIEWER: DAVID DOMINGUEZ/FACILITIES & DEVELOPMENT MANAGER TELEPHONE/E-MAIL: (714)374-5309/ddominguez@surfcity-hb.org PROJECT DESCRIPTION: Request to amend Section 213.06 of the HBZSO to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS-PR zoning district. The following is a list of code requirements deemed applicable to the proposed project based on plans stated above. The list is intended to assist the applicant by identifying requirements which must be satisfied during the various stages of project permitting and implementation. A list of conditions of approval adopted by the City Council in conjunction with the requested entitlement(s), if any, will also be provided upon final project approval. If you have any questions regarding these requirements, please contact the Plan Reviewer. Community Services is in agreement with establishing a CUP process to permit the sales, service and consumption of beer and wine within the OS-PR zone. There may be language in the code already but, if not, there should be a definition of alcohol that distinguishes beer and wine from spirit alcohol. HB -326-Item 13. - 25 CITY OF HUNTINGTON BEACH PROJECT IMPLEMENTATION CODE REQUIREMENTS DATE: FEBRUARY 28, 2018 PROJECT NAME: BEER AND WINE IN OS-PR ZONING DISTRICT PLANNING APPLICATION NO.: 2018-013 ENTITLEMENTS: ZONING TEXT AMENDMENT NO. 2018-001 PROJECT LOCATION: OS-PR ZONING DISTRICT WITHIN THE CITY OF HUNTINGTON BEACH PROJECT PLANNER: NICOLLE BOURGEOIS, ASSISTANT PLANNER PLAN REVIEWER: STEVE EROS, FIRE PROTECTION ANALYST TELEPHONE/E-MAIL: (714)536-5531/ Steve.Eros@surfcity-hb.org PROJECT DESCRIPTION: Request to amend Section 213.06 of the HBZSO to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS-PR zoning district. The following is a list of code requirements deemed applicable to the proposed project based on plans stated above. The list is intended to assist the applicant by identifying requirements which must be satisfied during the various stages of project permitting and implementation. A list of conditions of approval adopted by the City Council in conjunction with the requested entitlement(s), if any, will also be provided upon final project approval. If you have any questions regarding these requirements, please contact the Plan Reviewer. 1. The HBFD has no requirements for the proposed amendment to Section 213.06 of the HBZSO. Fire Department City Specifications may be obtained at: Huntington Beach Fire Department Administrative Office City Hall 2000 Main Street, 5th floor Huntington Beach, CA 92648 or through the City’s website at http://www.huntingtonbeachca.gov/government/departments/Fire/fire_prevention_code_enforce ment/fire_dept_city_specifications.cfm If you have any questions, please contact the Fire Prevention Division at (714) 536-5411. HB -327-Item 13. - 26 CITY OF HUNTINGTON BEACH PROJECT IMPLEMENTATION CODE REQUIREMENTS DATE: FEBRUARY 28, 2018 PROJECT NAME: BEER AND WINE IN OS-PR ZONING DISTRICT PLANNING APPLICATION NO.: 2018-013 ENTITLEMENTS: ZONING TEXT AMENDMENT NO. 2018-001 PROJECT LOCATION: OS-PR ZONING DISTRICT WITHIN THE CITY OF HUNTINGTON BEACH PROJECT PLANNER: NICOLLE BOURGEOIS, ASSISTANT PLANNER PLAN REVIEWER: Kellee Fritzal, Deputy Director Business Development TELEPHONE/E-MAIL: (714)374-1519/kfritzal@surfcity-hb.org PROJECT DESCRIPTION: Request to amend Section 213.06 of the HBZSO to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS-PR zoning district. The following is a list of code requirements deemed applicable to the proposed project based on plans stated above. The list is intended to assist the applicant by identifying requirements which must be satisfied during the various stages of project permitting and implementation. A list of conditions of approval adopted by the City Council in conjunction with the requested entitlement(s), if any, will also be provided upon final project approval. If you have any questions regarding these requirements, please contact the Plan Reviewer. The Office of Business Development supports the establishment of a CUP process to permit consumption of beer and wine within restaurants located in Central Park. The restaurants in Central Park would need to have a Lease with the City of Huntington Beach and the City would allow the application for a permit from the City and ABC, if they are in “good-standing” with the City. Please contact me if you have any questions. PLEASE PROVIDE COMMENTS BY FEBRUARY 28, 2018 HB -328-Item 13. - 27 CITY OF HUNTINGTON BEACH PROJECT IMPLEMENTATION CODE REQUIREMENTS DATE: FEBRUARY 28, 2018 PROJECT NAME: BEER AND WINE IN OS-PR ZONING DISTRICT PLANNING APPLICATION NO.: 2018-013 ENTITLEMENTS: ZONING TEXT AMENDMENT NO. 2018-001 PROJECT LOCATION: OS-PR ZONING DISTRICT WITHIN THE CITY OF HUNTINGTON BEACH PROJECT PLANNER: NICOLLE BOURGEOIS, ASSISTANT PLANNER PLAN REVIEWER: MICHELLE BOLDT / SPECIAL INVESTIGATIONS CSO TELEPHONE/E-MAIL: (714) 536-5986 / MBOLDT@HBPD.ORG PROJECT DESCRIPTION: Request to amend Section 213.06 of the HBZSO to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS-PR zoning district. The following is a list of code requirements deemed applicable to the proposed project based on plans stated above. The list is intended to assist the applicant by identifying requirements which must be satisfied during the various stages of project permitting and implementation. A list of conditions of approval adopted by the City Council in conjunction with the requested entitlement(s), if any, will also be provided upon final project approval. If you have any questions regarding these requirements, please contact the Plan Reviewer. No Packaged Sales of alcohol Increased preventative security measures o Functioning Video o Working alarm system o Increased motion detected lighting o The ability to secure alcohol after hours HB -329-Item 13. - 28 From:James, Jane To:Bourgeois, Nicolle Subject:FW: April 10th Public Hearing -- Zoning Text Amendment Allowing Alcohol Sales in Central Park and at Golf Courses -- SUPPORT Date:Friday, March 30, 2018 4:41:31 PM fyi   Jane James | Planning Manager City of Huntington Beach Department of Community Development 714.536.5596 | jjames@surfcity-hb.org   From: Richardson Gray [mailto:richardson.gray@yahoo.com] Sent: Friday, March 30, 2018 4:19 PM To: Planning Commission Subject: April 10th Public Hearing -- Zoning Text Amendment Allowing Alcohol Sales in Central Park and at Golf Courses -- SUPPORT Dear Planning Commissioners, I want to reiterate my support for the proposed Zoning Text Amendment allowing alcohol sales in Central Park and on golf courses. As I have said before, I am only supporting this Amendment because it is limited to Central Park and golf courses. I am completely opposed to any alcohol sales in any other City parks or at any City beaches. Thank you again for considering my views. Richardson Gray 415 Townsquare Lane #208 Huntington Beach, CA 92648 714-348-1928 (cell) HB -330-Item 13. - 29 From:James, Jane To:Bourgeois, Nicolle Subject:FW: Planning Commission Meeting -- March 27th -- Item A-1 -- Alcohol Sales in Central Park and at Golf Courses -- SUPPORT Date:Wednesday, March 21, 2018 8:30:02 AM FYI   Jane James | Planning Manager City of Huntington Beach Department of Community Development 714.536.5596 | jjames@surfcity-hb.org   From: Richardson Gray [mailto:richardson.gray@yahoo.com] Sent: Wednesday, March 21, 2018 5:03 AM To: Planning Commission Subject: Planning Commission Meeting -- March 27th -- Item A-1 -- Alcohol Sales in Central Park and at Golf Courses -- SUPPORT Dear Planning Commissioners, I have owned my home in our Downtown neighborhood for 11 years. My home abuts our historic Triangle Park, established in 1912, 106 years ago. I am writing to express my SUPPORT for your Item A-1 for your March 27th meeting, but only because it is limited to allowing Alcohol Sales solely in Central Park and at Golf Courses. I am very happy that the City has chosen to limit Alcohol Sales in Public Parks exclusively to Central Park and Golf Courses. I am categorically opposed to any further expansion of alcohol sales in any other public parks or at the beach. Thank you for considering my views. Richardson HB -331-Item 13. - 30 From:James, Jane To:Bourgeois, Nicolle Subject:FW: Planning Commission Meeting March 27, 2018 Date:Wednesday, March 21, 2018 8:30:19 AM FYI Jane James | Planning Manager City of Huntington Beach Department of Community Development 714.536.5596 | jjames@surfcity-hb.org -----Original Message----- From: Kim Kramer [mailto:kim@e-mailcom.com] Sent: Wednesday, March 21, 2018 7:48 AM To: Planning Commission Cc: Posey, Mike; Brenden, Patrick; Wilson, Fred Subject: Planning Commission Meeting March 27, 2018 Dear Planning Commissioners, cc: Mayor Posey, Councilman Brenden, City Manager Wilson, I am writing to express my support for Agenda Item A-1 under the express condition that alcohol sales are restricted to beer and wine at Central Park and golf courses only. Alcohol sales and/or consumption at any other public park would have serious negative impacts on our community. Thank you. Kim Kramer Downtown Resident Kim Sent from my iPad HB -332-Item 13. - 31 Dept. ID HR 18-007 Page 1 of 2 Meeting Date: 5/7/2018 Statement of Issue: The City and the Surf City Lifeguard Employees’ Association have tentatively agreed to enter into a new Memorandum of Understanding (MOU) for the period January 1, 2018 through June 30, 2019. Financial Impact: Funding for the implementation of the fiscal items contained in the proposed Memorandum of Understanding will be supported by the General Fund. The fiscal impact for FY 2018/19 is estimated by the Finance Department to approximate $101,472. Recommended Action: Approve the Tentative Agreement and the Introduction of the proposed Memorandum of Understanding Between the Surf City Lifeguard Employees’ Association and the City of Huntington Beach for the period January 1, 2018 through June 30, 2019. Alternative Action(s): Do not approve the tentative agreement and the introduction of the proposed successor MOU for SCLEA employees and direct staff to continue to meet and confer with the Association or utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution. Analysis: Representatives for the City and SCLEA have been involved in active negotiations over a period of several months and have completed the meet and confer process with a tentative agreement on a proposed Memorandum of Understanding (MOU) for the period of January 1, 2018 through June 30, 2019. The negotiated items contained within the Tentative Agreement include overtime compensation for work performed on Independence Day (July 4th – Observed), and a one-step structural modification to the wage pay table for competitive market recruitment and retention. Highlights from the listing of tentatively agreed upon pay and benefit changes include the following: • Term – 01/01/18 – 06/30/19 • Overtime compensation for hours worked on Independence Day (July 4th – Observed) • Wage table modification (delete current Step A/add new Step E) CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 5/7/2018 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 Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Surf City Lifeguard Employees’ Association (SCLEA) and the City of Huntington Beach for January 1, 2018 through June 30, 2019 HB -333-Item 14. - 1 Dept. ID HR 18-007 Page 2 of 2 Meeting Date: 5/7/2018 There were other appropriate modifications to a variety other provisions including, but not limited to, deletion of obsolete language, regulatory compliance language changes and, general clean-up language. A summary of these and all other negotiated provisions are included in the proposed MOU listed as Exhibit “A”. Environmental Status: N/A Strategic Plan Goal: Enhance and Maintain City service delivery Enhance and maintain public safety Attachment(s): 1. SCLEA Tentative Agreement – City Proposal 2. Tentative Agreement between City and SCLEA dated April 26, 2108 3. Proposed SCLEA Memorandum Of Understanding - Exhibit “A” 4. Power Point Presentation HB -334-Item 14. - 2 SCLEA Negotiations City Proposal #4 April 19, 2018 Item Proposal Article 1 January 1,2018 through June 30, 2019 Term of MOU Article VIII Salary Schedule Article XII - Overtime City agrees to modify the salary table as follows, effective the beginning of the pay period following City Council final approval. Classification Step A Step B Step C Step D Step E Ocean Lifeguard I 16.75 17.67 18.65 19.68 20.66 Ocean Lifeguard II 20,23 21.34 22.52 23.75 24.94 Ocean Lifeguard ill 24.25 25.59 27.00 28.49 29.91 Junior Guard Instructor I 17.87 18.86 19.88 20.98 22.03 Junior Guard Instructor II 20.23 2134 22.52 23.75 24.94 Junior Lifeguard Program Coordinator I 25.32 26.71 28.18 29.73 31,22 Junior Lifeguard Program Coordinator II 29.12% ' 30.72 32.41 34.20 35.91 Employees in all classifications will be moved to the new step which corresponds to their current base hourly rate of pay as of the effective date of this agreement. Work hours towards the 720 hours of merit step eligibility for employees currently eligible for a merit increase (employees on current steps A-D/NEW steps A-C) will not be impacted. For employees currently on Step E/New Step D, only those hours worked following the beginning of the pay period following final City Council approval of the wage change will count towards the 720 work hours for eligibility for a merit step increase. In any event, no employee in any classification as of the effective date of this provision shall be eligible for movement to the successor step until after he/she has met the required one year in service, 720 work hours and performance evaluation standards for the successive work calendar year (effective in 2018). Effective the first calendar date of the named holiday commencing subsequent to City Council approval of this agreement, employees shall receive 1.5 times their base HB -335-Item 14. - 3 Lori Ann Farrell-H9frison, Assistant City Manager e Warren, Director of Human Resources 6-0 cevize SCLEA Negotiations City Proposal #4 April 19, 2018 Holiday Pay hourly rate of pay for at hours worked on the City Observed Holiday of Independence Day (July 4). Employees who meet or exceed 40 work hours in the FLSA work period as of the City Observed Holiday will receive 1.5 times their base hourly rate of pay for all hours worked on the City Observed Holiday. (No double-time and one-half/2.5). All other items contained in the (expired) memorandum of understanding between the Surf City Lifeguard Employees Association and the City of Huntington Beach shall remain unchanged through 06/30/19. Tentative Agreement - April 26, 2018 Michael Baumgartner, 1\66rine Safety Division Chief HB -336-Item 14. - 4 City of Huntington BeachTentative AgreementDated: April 26, 2018Term: 1/1/2018 ‐ 6/30/2019MOU Item #DescriptionYear 2 Potential Annual ImpactMaximum Estimated Annual  Impact Note:1Step Adjustment^ 65,604$       90,836$           Year 2 Assumes 65% of members would qualify for the Step Adjustment2Special Pay: Holiday Pay 7,682$         10,636$           Independence Day at 1.5 times normal paySubtotal Estimated Proposl Impact 73,286$       101,472$        Note: Year 2 is full annual impact.*Does not include the impact of normally occurring CalPERS Rate increases that will increase City costs based on prior MOUs and CalPERS Rate changes.^Note: requires one year in service, 720  work hours and performance evaluation standards for a merit increase.These estimates are subject to change and represent Management's best estimate and analysis of the fiscal impact and costs of the above proposal, given the information that is available at this time.These estimates are subject to change.5/2/2018For Discussion Purposes Only12:38 PMHB -337-Item 14. - 5 MEMORANDUM OF UNDERSTANDING BETWEEN SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION AND CITY OF HUNTINGTON BEACH OCTOBER 1, 2015 – DECEMBER 31, 2017 JANUARY 1, 2018 – JUNE 30, 2019 HB -338-Item 14. - 6 SCLEA MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS i ARTICLE I – TERM OF MOU ____________________________________________ 1 ARTICLE II – REPRESENTATION ________________________________________ 1 A. REPRESENTATION UNIT ___________________________________________________ 1 B. EMPLOYEE AND UNION RIGHTS _____________________________________________ 1 ARTICLE III – PAYROLL DEDUCTION OF UNION DUES _____________________ 2 ARTICLE IV – UNIFORM ALLOWANCE ___________________________________ 2 A. NEW HIRES ____________________________________________________________ 2 B. DAMAGED UNIFORM ARTICLES ______________________________________________ 2 C. UNIFORM - RETURNING RECURRENT OCEAN LIFEGUARD ___________________________ 2 D. SUNSCREEN AND LIP BALM ________________________________________________ 2 E. REPORTING OF UNIFORMS _________________________________________________ 2 ARTICLE V – PARKING PASSES ________________________________________ 3 A. PARKING PASSES _______________________________________________________ 3 B. PARKING PASS - BEFORE REQUALIFICATION ____________________________________ 3 ARTICLE VI – ANNUAL RECURRENT OCEAN LIFEGUARD RE-QUALIFICATIONS 3 A. WORK AVAILABLE -- RETURN TO ACTIVE EMPLOYMENT ____________________________ 3 ARTICLE VII – ANNUAL PHYSICAL AND TECHNICAL TESTING _______________ 4 ARTICLE VIII – SALARY SCHEDULE _____________________________________ 4 A. CURRENT MODIFIED SALARY SCHEDULE ______________________________________ 4 B. WAGE INCREASES _______________________________________________________ 4 ARTICLE IX – RETIREMENT ____________________________________________ 5 ARTICLE X – WORK DAY; WORK WEEK __________________________________ 5 A. FALL, W INTER, SPRING & SPRING BREAK AND SUMMER ___________________________ 5 B. NOT A GUARANTEE OF WORK_______________________________________________ 5 C. 1,500 HOURS __________________________________________________________ 5 ARTICLE XI – SPECIAL PAY ____________________________________________ 6 A. EMT _________________________________________________________________ 6 B. BILINGUAL PAY _________________________________________________________ 6 C. EFFECTIVE DATE OF SPECIAL PAY ___________________________________________ 6 D. SUPEONA/COURT PAY ____________________________________________________ 6 ARTICLE XII – OVERTIME ______________________________________________ 6 HB -339-Item 14. - 7 SCLEA MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS ii ARTICLE XIII – MISCELLANEOUS _______________________________________ 7 A. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION ________________________________ 7 B. RETURN TO W ORK POLICY _________________________________________________ 7 C. GRIEVANCE PROCEDURE __________________________________________________ 7 D. AB 1522 – HEALTHY W ORKPLACES, HEALTHY FAMILIES ACT OF 2014 ________________ 8 E. DEATH RELATED BENEFITS ________________________________________________ 9 ARTICLE XIIII – CITY COUNCIL APPROVAL ______________________________ 10 EXHIBIT A - SALARY SCHEDULE ______________________________________ 11 HB -340-Item 14. - 8 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 1 Article I – Term of MOU The City of Huntington Beach (“City”) and the Surf City Lifeguards Employees Association (“SCLEA”) have reached agreement for a limited Memorandum -of-Understanding (“MOU”) for the term of October 1, 2015 – December 31, 2017January 1, 2018 – June 30, 2019. The terms and conditions of employment are as follows: Article II – Representation A. Representation Unit City recognizes SCLEA as the representative concerning all matters relating to employer-employee relations including, but not limited to wages, hours and other conditions of employment for all employees in the “Recurrent Ocean Lifeguard” Representation Unit, as follows: Included: All City of Huntington Beach “Recurrent Ocean Lifeguard” (Classifications: Ocean Lifeguard I, Ocean Lifeguard II, Ocean Lifeguard III, Junior Guard Instructor I, Junior Guard Instructor II, Junior Lifeguard Program Coordinator I, and Junior Lifeguard Program Coordinator II). Excluded: Management Personnel, Marine Safety Officers, and all other employees. B. Employee and Union Rights SCLEA shall have the right to represent all employees in the “Recurrent Ocean Lifeguard” representation unit in their employment relations with the City, including the Meyers-Milias-Brown Act (“MMBA”) “meet and confer” process. C. Marine Safety Division will provide space for a bulletin board in the Lifeguard Headquarters for all SCLEA members to receive information. HB -341-Item 14. - 9 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 2 Article III – Payroll Deduction of Union Dues City will continue to deduct SCLEA’s monthly un ion dues (on a bi-weekly basis) as designated by SCLEA, and authorized by the individual employee. SCLEA agrees to hold the City harmless for such payroll deductions. In the event of a SCLEA fee arrangement outside of an agreement that is in effect, SCLEA shall indemnify and hold the City of Huntington Beach harmless against any liability arising from any claims, demands, or other action relating to the City of Huntington Beach’s compliance with SCLEA’s fee obligation as stated in Government Code §3502.5.b.2. Article IV – Uniform Allowance A. New Hires All new hires will be issued, at no charge, a full set of uniform articles and equipment which includes: a hat, T -shirt, jacket, shorts, men's black swimsuit, women's red swimsuit, tear-away sweatpants, sandals, fins, sunglasses and bag. B. Damaged Uniform Articles The Operations Supervisor will replace uniform articles and equipment as referenced in Article IV A. that are damaged in the line of duty or worn out by the passage of time. C. Uniform - Returning Recurrent Ocean Lifeguard The city shall provide one set of shorts and a shirt to each returning "Recurrent Ocean Lifeguard". D. Sunscreen and Lip Balm The city shall provide Sun Protection Factor (SPF) 15 or higher sunscreen and lip balm to all SCLEA members. E. Reporting of Uniforms For each CalPERS employee, the City will report to the California Public Employees’ Retirement System (CalPERS), the average annual cost of uniforms provided as special compensation in accordance with Title 2, California Code of Regulations, Section 571(a)(5). The average annual cost of uniforms provided shall include uniforms issued and article replacements during a payroll calendar HB -342-Item 14. - 10 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 3 year. Reporting shall not include personal protective equipment, unless otherwise permitted in accordance with CalPERS law. 1. This section shall not apply to new members of this unit who are designated by CalPERS as “new members” in accordance with GC Section 7522.04 (f) and whose “Pensionable Compensation” is subject to the provisions of GC Section 7522.34. Ar ticle V – Parking Passes A. Parking Passes Parking passes will be issued to “Recurrent Ocean Lifeguards” who pass the annual re-qualification exam. B. Parking Pass - Before Requalification Before re-qualification has been completed: 1. A parking pass will be provided to recurrents who are called to work; and 2. Recurrents who come to the beach to train may obtain a temporary pass for that day from the on-duty Operations Supervisor. Article VI – Annual Recurrent Ocean Lifeguard Re-qualifications A. Work Available -- Return to Active Employment If there is work available and if the "Recurrent Ocean Lifeguard" meets the following criteria, the "Recurrent Ocean Lifeguard" shall be returned to active employment for the following season: 1. The employee performance evaluations meet Marine Safety Division (MSD) standards; 2. The employee did not resign or was not terminated from employment with the City; 3. The employee completed the existing minimum hour working standard; HB -343-Item 14. - 11 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 4 4. The employee has successfully completed the yearly re -qualification exam; 5. The employee has successfully completed and responded by the dates designated in the recurrent spring questionnaire. Article VII – Annual Physical and Technical Testing A. City will continue to provide annual physical and technical testing of “Recu rrent Ocean Lifeguards.”All unit employees will receive recertification training and skills testing each year during the annual requalification process. The actual number of minimally required training hours will be determined annually by Marine Safety Division Administration. B. City to provide annual skin cancer screening examinations to all unit employees to be conducted by a medical facility selected by the City at Lifeguard HQ or Junior Guard HQ. Unit employees who are screened off duty will be paid one (1) hour of compensation at the employee’s base hourly rate of pay. Article VIII – Salary Schedule A. Current Modified Salary Schedule "Recurrent Ocean Lifeguards" shall be compensated at an hourly rate by classification title and pay range, as set forth in Exhibit A.Effective the beginning of the pay period following City Council final approval , employees in all classifications will be moved to the new step which corresponds to their current base hourly rate of pay. Work hours towards the 720 hours of merit step eligibility for employees currently eligible for a merit increase (employees on current steps A-D/NEW steps A-C) will not be impacted. For employees currently on Step E/New Step D, only those hours worked following the beginning of the pay period following final City Council approval of the wage change will count towards the 720 work hours for eligibility for a merit step increase. HB -344-Item 14. - 12 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 5 In any event, no employee in any classification as of the effective date of this provision shall be eligible for movement to the successor step until after he/she has met the required one year in service, 720 work hours and performance evaluation standards for the successive work calendar year (effective in 2018). B. Wage Increases 1. Effective the beginning of the pay period following City Council approval or August 12, 2017, whichever is later, all bargaining unit employees shall receive a four percent (4%) wage increase. Article IX – Retirement All employees not eligible for enrollment in the California Public Employees’ Retirement System (CalPERS) shall be enrolled in the Public Agency Retirement Services (PARS). All PARS contributing employees of this unit shall pay 7.5% towards the PARS contribution. Article X – Work Day; Work Week A. Fall, Winter, Spring & Spring Break and Summer City shall establish work schedules for Fall, Winter, Spring & Spring Break, Summer and other schedules as needed. B. Not a Guarantee of Work Neither this provision nor any work schedule shall constitute a guarantee of work (either daily or weekly) for "Recurrent Ocean Lifeguards". C. 1,500 Hours An employee represented by the SCLEA may work up to one thousand five hundred (1,500) hours in a twelve-month (12-month) period. The 12-month period shall be based on a City payroll calendar year. An employee shall not work more than 1,500 hours in this 12-month period. HB -345-Item 14. - 13 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 6 Article XI – Special Pay A. EMT 1. Employees who maintain certification as Emergency Medical Technicians ("EMTs") according to State of California regulations and Orange County EMT policy in the classifications of Ocean Lifeguard I, Junior Guard Instructor I, Junior Guard Instructor II, Junior Lifeguard Program Coordinator I and Junior Lifeguard Program Coordinator II, shall receive an additional five percent (5%) per hour above their base hourly rate of pay. It is the employee's responsibility to maintain the EMT certification and to have a current EMT Certification on file. [This provision became effective June 30, 2014]. 2. Employees in the classifications of Ocean Lifeguard ll and Ocean Lifeguard III shall not be eligible for EMT special pay. Employees in these classifications shall be paid their base hourly rate for the 24 hours of required bi-annual re- certification. The hours paid/worked during the bi-annual EMT re-certification course shall not count towards satisfying the minimum hour requirement for reserve status. [This provision became effective for all recertifications completed on or after May 1, 2014]. B. Bilingual Pay SCLEA employees, who use their bilingual skill as part of their job assi gnment, shall be paid an additional five percent (5%) over their base hourly rate of pay. Employees shall be tested and certified by the Human Resources Director as to their language proficiency in order to be eligible for said compensation. Eligibility for bilingual pay shall be limited to the following languages: Spanish, Vietnamese, French, German, Japanese and American Sign Language. C. Effective Date of Special Pay All special pay shall be effective the beginning of the first full pay period following certification and verification as approved by the Department Head or designee. HB -346-Item 14. - 14 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 7 D. Subpoena/Court Pay Unit employees required/subpoenaed to attend proceedings that occur either on unscheduled work days and/or outside of scheduled work hours, which are directly related to Marine Safety employment, will be paid at the employee’s base hourly rate for time in attendance at said proceedings. Article XII – Overtime A. All unit employees shall be compensated at time and one half the regular rate of pay for all hours worked in excess of forty (40) hours per week. B. Effective the first calendar date of the named holidays commencing subsequent to City Council approval of this agreement, employees shall receive 1.5 times their base hourly rate of pay for all hours worked on the City Observed Holidays of Memorial Day, Independence Day and Labor Day. Employees who meet or exceed 40 work hours in the FLSA work period as of the City Observed Holiday will receive 1.5 times their base hourly rate of pay for all hours worked on the City Observed Holidays. (No double-time and one-half/2.5). Article XIII – Miscellaneous A. Employer-Employee Relations Resolution During the term of the agreement, the City and SCLEA agree to update the Employee-Employer Relations Resolution to reflect current State law. B. Return to Work Policy The City and the Association agree to the implementation of an Administrative Regulation for a Return to Work / Transition Duty Program for employees who experience industrial and non-industrial injury or illness. C. Grievance Procedure For the purpose of this procedure, a grievance is specifically defined as a dispute concerning the interpretation or application of any provision of the Memorandum HB -347-Item 14. - 15 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 8 of Understanding or any departmental rule governing personnel practices or working conditions. The grievance procedure shall consist of the following steps, each of which must be completed prior to any request for further consideration of the matter unless otherwise provided herein: Step 1. If a SCLEA employee feels that he has a grievance, as defined in C above, he or she may request a meeting with his immediate Marine Safety Lieutenant within ten (10) calendar days after the employee becomes aware or reasonably should have become aware of the subject matter of the grievance. The Marine Safety Lieutenant, within five (5) calendar days of such request, shall meet with the employee when so requested and discuss the grievance in an effort to clarify the issue and work toward a cooperative settlement or resolution of the dispute. The Marine Safety Lieutenant shall present, verbally and in writing, his decision to the employee within five (5) calendar days from the time of the informal discussion. Step 2. If the grievance is not settled under Step 1, the grievance may be presente d to the Marine Safety Chief. The grievance shall be submitted within five (5) calendar days after receipt of the written decision from Step 1. Within five (5) days after receipt of the written grievance, the Marine Safety Chief shall meet with the employee and his immediate supervisor, if any. Within five (5) calendar days thereafter, a written decision shall be given to the employee from the Marine Safety Chief. Step 3. If the grievance is not settled under Step 2, the grievance may be presented to the Department Director/Fire Chief or designee. The grievance shall be submitted within five (5) calendar days after receipt of the written decision from Step 2. Within five (5) days after receipt of the written grievance, the Department Director/Fire Chief or designee shall meet with the employee and his/her immediate supervisor, if any. Within five (5) calendar days thereafter, a written decision shall be given to the employee from the Department Director/Fire Chief HB -348-Item 14. - 16 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 9 or designee. The decision by the Department Director/Fire Chief or designee shall be considered final and shall end the grievance procedure. In the event the grievant does not comply with the time limits imposed by this Article, the decision is deemed final and the grievance process shall end. D. AB 1522 – Healthy Workplaces, Healthy Families Act of 2014 The City agrees to provide unit members with paid sick leave benefits in accordance with state law. E. Death Related Benefits In the event a SCLEA unit member expires while engaging in the performa nce of his/her duties in the course and scope of his/her work; and should his/her beneficiaries/survivors be entitled to death -related benefits in accordance with State of California Workers’ Compensation law, the City agrees to provide the named beneficiary designated to receive the employee’s final pay warrant as the beneficiary for a one-time final expense stipend of $10,000. Such stipend shall be in addition to, and not in lieu of, any death-related and/or other benefits his/her beneficiaries/survivors may be entitled to under State of California Workers’ Compensation law. Such stipend payment to the beneficiary is not life insurance and is subject to the appropriate treatment under Internal Revenue Service regulations. HB -349-Item 14. - 17 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (SCLEA) SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 10 Article XIIII – City Council Approval It is the understanding of the City and SCLEA that this MOU has no force or effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Mem orandum of Understanding this ______day of _______20178. City of Huntington Beach (A Municipal Corporation) Surf City Lifeguard Employees’ Association By: By: Fred A. Wilson City Manager Ryan Camps SCLEA President By: By: Lori Ann Farrell-Harrison Assistant City Manager Peter Eich Negotiations Team By: By: Michele Warren Director of Human Resources Corey A. Miller SCLEA Attorney By: Mike Baumgartner Marine Safety Division Chief By: JoAnn Diaz Principal Human Resources Analyst By: Approved as to form: Sandy Henderson Senior Human Resources Analyst Michael E. Gates City Attorney HB -350-Item 14. - 18 SURF CITY LIFEGUARD EMPLOYEES’ ASSOCIATION (“SCLEA”) EXHIBIT A – SALARY SCHEDULE SCLEA MOU October 1, 2015 – December 31, 2017January 1, 2018 –June 30, 2019 11 4% Effective August 12, 2017 Job Code Classification Range A B C D E 0244/0521 Ocean Lifeguard I SCL377 15.88 16.75 17.67 18.65 19.68 0248/0504 Ocean Lifeguard II SCL415 19.18 20.23 21.34 22.52 23.75 0249/0439 Ocean Lifeguard III SCL430 22.99 24.25 25.59 27.00 28.49 0246 Junior Guard Instructor I SCL390 16.93 17.87 18.86 19.88 20.98 0247/0573 Junior Guard Instructor II SCL415 19.18 20.23 21.34 22.52 23.75 0250/0477 Junior Lifeguard Program Coordinator I SCL460 24.00 25.32 26.71 28.17 29.73 0236/0476 Junior Lifeguard Program Coordinator II SCL488 27.60 29.12 30.72 32.41 34.20 Effective the Beginning of the Pay Period Following City Council Final Approval Job Code Classification Range A B C D E 0244/0521 Ocean Lifeguard I SCL377 16.75 17.67 18.65 19.68 20.66 0248/0504 Ocean Lifeguard II SCL415 20.23 21.34 22.52 23.75 24.94 0249/0439 Ocean Lifeguard III SCL430 24.25 25.59 27.00 28.49 29.91 0246 Junior Guard Instructor I SCL390 17.87 18.86 19.88 20.98 22.03 0247/0573 Junior Guard Instructor II SCL415 20.23 21.34 22.52 23.75 24.94 0250/0477 Junior Lifeguard Program Coordinator I SCL460 25.32 26.71 28.17 29.73 31.22 0236/0476 Junior Lifeguard Program Coordinator II SCL488 29.12 30.72 32.41 34.20 35.91 Formatted Table HB -351-Item 14. - 19 City Council Meeting –05/07/18HB -352-Item 14. - 20 SCLEASurf City Lifeguard Employees’ AssociationSeasonal/Recurrent Lifeguards160+members7 Classifications▪Ocean Lifeguard I/II/III▪Jr. Lifeguard Program Coordinator I/II▪Jr. Lifeguard Program Instructor I/IIContract expired 12/31/2017▪80% of unit members notin CalPERS2HB -353-Item 14. - 21 Agency Title Minimum MaximumLong Beach Lifeguard $17.97 $24.51Seal Beach Beach Lifeguard $18.17 $22.09San Clemente Ocean Lifeguard $17.79 $21.63Laguna Beach Ocean LifeguardI $18.13 $21.38Newport Beach Lifeguard I $17.79 $20.60Huntington Beach‐currentHuntington Beach‐proposedOceanLifeguard IOcean Lifeguard I$15.88$16.75$19.68$20.66HuntingtonState Beach Lifeguard I $15.19 $16.873HB -354-Item 14. - 22 Term –01/01/18 –06/30/19 Market Step AdjustmentDelete current lowest wage step (Step A)Add new wage step (Step E)Employees must meet all merit increase eligibility criteria:▪One successive work year▪720 hours minimum required work hours▪Satisfactory Performance ReviewOvertime Pay Independence Day (July 4th‐Observed)Estimated Cost ‐$101,472* (fully annualized)Estimated Cost FY 18/19 ‐$73,2864HB -355-Item 14. - 23 CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable Mayor and City Council Memb s From: Erik Peterson, Mayor Pro Te Lyn Senneta, City Council ember(/ Date: April 30, 2018 Subject: CITY COUNCIL MEMBER ITEM FOR THE MAY 7, 2018, CITY COUNCIL MEETING — CREATION OF A HARBOUR COMMISSION STATEMENT OF ISSUE: Currently, no advisory body exists within the City of Huntington Beach charged with ensuring the welfare of Huntington Harbour for residential, recreational and commercial users of the waterways, and related infrastructure. In order to facilitate holistic management of Huntington Harbour a Harbour Commission should be created. The Commission's purpose would be to provide advice to the City Council on matters pertaining to the Harbour including: the use, control, operation, promotion, and regulation of vessels and watercraft within the Harbour; advice on any necessary or proposed Harbour-related improvements or infrastructure repair/maintenance; and make recommendations for the adoption of regulations and programs necessary for the ongoing implementation of the goals, objectives, and policies of the Harbour. RECOMMENDED ACTION: 1. Direct staff, including the City Attorney, to review best practices for the operation of a Harbour Commission, including the make-up of Commission membership, authority of the Commssion, and proposed amendments to the Municipal Code, for the creation and operation of a Harbour Commission. 2. Create an ad hoc committee, to include two Council Members as liaisons, to work with staff and return to Council within 90 days with a proposal covering items listed in #1 above. xc: Fred Wilson, City Manager Lori Ann Farrell Harrison, Assistant City Manager Robin Estanislau, City Clerk Michael Gates, City Attorney HB -356-Item 15. - 1 CITY OF HUNTINGTON BEACH City Council Interoffice Communication TO: Honorable Mayor and City Council Members FROM: Patrick Brenden, City Council Member PZ DATE: April 30, 2018 SUBJECT: CITY COUNCIL MEMBER ITEM FOR THE MAY 6, 2018, CITY COUNCIL MEETING — MOVE CITY COUNCIL MEETINGS FROM MONDAY TO TUESDAY STATEMENT OF ISSUE: st rd Regular meetings of the Huntington Beach City Council have traditionally been scheduled on the 1 and 3 Mondays of each month except when a regular meeting falls on a holiday, in which case such regular meeting is moved to the next business day (Tuesday). Conflicts with holidays occur often. In 2018, there are four occasions upon which the regular City Council meeting falls on a holiday. In 2017, there were five such occasions. Historically, there have been as few as three and as many as five such occasions each year. In all of these cases, the regular meeting was moved to Tuesday. This situation leads to inconsistency in the schedule for regular City Council meetings and can cause confusion for the public and others wishing to watch or attend. nd th St Regular Planning Commission meetings are held on the 2 and 4 Tuesdays of each month. When the 1 day of the month falls on a Tuesday, as it does this month, this leads to a situation where the regular meetings of the Planning Commission and City Council fall in the same week, on successive nights. Each year, there are one or two months in which this occurs. In these months, City Staff is faced with two public meetings occurring on successive nights (City Council on Monday; Planning Commission on Tuesday). In order to eliminate the conflicts described above, I propose that regular meetings of the Huntington Beach City Council be scheduled on the 1 st and 3 0 Tuesdays instead of 1st and 3rd Mondays. This change would be in compliance with the Huntington Beach City Charter which, under Article III, Section 303, states that The City Council shall hold regular meetings at least twice each month at such time as it shall fix by ordinance or resolution..." and if any regular meeting falls on a holiday such regular meeting shall be held on the next business day." This change would require a Council Resolution and modification of the City Council Manual that was initially adopted by Resolution No. 4330, dated September 20, 1976, and specified in Chapter 1.03, Section 1.03.02, that "Regular Council Meetings shall be held in the City Council Chambers on the first and third Mondays of each month at 7 p.m., except when a meeting fails on a holiday it shall be held on the next business day." Multiple City Council Resolutions fixing the different starting times of City Council Meetings have been adopted over the years. RECOMMENDED ACTION: Direct the City Manager to work with staff to propose modifications to the Council Manual and work with the City Attorney to return and present to Council appropriate Resolutions to establish that regular City Council meetings shall be held on the first and third Tuesdays of each month. Return to City Council for action within 45 days. xc: Fred Wilson, City Manager Lori Ann Farrell Harrison, Assistant City Manager Robin Estanislau, City Clerk Michael Gates, City Attorney HB -357-Item 16. - 1