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AGENDA
CITY COUNCIL/PUBLIC FINANCING AUTHORITY
Monday, June 17, 2019
Council Chambers
2000 Main Street
Huntington Beach, CA 92648
Study Session - 4:00 PM / Closed Session - 5:00 PM
Regular Meeting - 6:00 PM
MAYOR AND CITY COUNCIL
ERIK PETERSON, Mayor
LYN SEMETA, Mayor Pro Tem
PATRICK BRENDEN, Councilmember
KIM CARR, Councilmember
BARBARA DELGLEIZE, Councilmember
JILL HARDY, Councilmember
MIKE POSEY, Councilmember
STAFF
DAVE KIFF, Interim City Manager
MICHAEL E. GATES, City Attorney
ROBIN ESTANISLAU, City Clerk
ALISA BACKSTROM, City Treasurer
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City Council/Public Financing
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AGENDA June 17, 2019
4:00 PM - COUNCIL CHAMBERS
CALL TO ORDER
ROLL CALL
Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy
Councilmember Patrick Brenden has requested permission to be absent pursuant to
Resolution No. 2001-54
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda
Distribution)
PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute
Time Limit)
STUDY SESSION
19-6761.Public Cable Television Authority (PCTA) Exit Plan
RECESS TO CLOSED SESSION
CLOSED SESSION
19-7022.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: Benzen Properties, LLC, et al. v.
City of Huntington Beach, et al.; OCSC Case No. 30-2019-01070544
19-7013.Pursuant to Government Code § 54954.5(e), the City Council shall
recess into Closed Session to discuss the public employment of
City Manager
19-7044.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: Moore (Neal), et al. v. City of
Huntington Beach, et al.; OCSC Case No.: 30-2019-01071686
6:00 PM – COUNCIL CHAMBERS
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING
ROLL CALL
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City Council/Public Financing
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AGENDA June 17, 2019
Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy
Councilmember Patrick Brenden has requested permission to be absent pursuant to
Resolution No. 2001-54
PLEDGE OF ALLEGIANCE
INVOCATION
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.
19-6395.Emrah Erduran of the Pacifica Institute and member of the Greater
Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY
AWARDS AND PRESENTATIONS
19-6876.Mayor Peterson to call on Victoria Alberty to present the Adoptable
Pet of the Month
19-6887.Mayor Peterson to call on Community Services Director Marie
Knight who will present the Mayor’s Award to Community Services
Programs and Services Manager, Chris Slama
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda
Distribution)
PUBLIC COMMENTS (3 Minute Time Limit)
COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
CITY MANAGER'S REPORT
CONSENT CALENDAR
19-6738.Approve and Adopt Minutes
A) Approve and adopt the City Council/Public Financing Authority regular meeting
minutes dated May 20, 2019; and,
Recommended Action:
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AGENDA June 17, 2019
B) Approve and adopt the City Council/Public Financing Authority regular meeting and the
Housing Authority special meeting minutes dated June 3, 2019.
19-6469.Approve appointments and reappointments to the Huntington
Beach Youth Board with terms to expire May 31, 2020 as
recommended by Councilmember liaisons Jill Hardy and Kim Carr
A) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve
the appointment of the following students to a one-year term on the Huntington Beach
Youth Board with terms to expire May 31, 2020:
Jenna Ali - Huntington Beach High School, At-Large Member
Bella Brannon - Ocean View High School, At-Large Member
Andre Mai - Huntington Beach High School, At-Large Member
Kathryn Robinson - Marina High School, At-Large Member
Caitlin Sheetz - Edison High School, At-Large Member
B) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve
the reappointment of the following students to a one-year term on the Huntington Beach
Youth Board with terms to expire May 31, 2020:
Natalie Blazquez - Ocean View High School, Representative
Samuel Dater - Edison High School, Representative
Tatum Osborne - Marina High School, Representative
Amy Zang - Huntington High School, Representative
Recommended Action:
19-62810.Accept the Sewer Service Fund Performance Audit for Fiscal Year
2018-19
Accept the Sewer Service Fund Performance Audit for Fiscal Year 2018-19.
Recommended Action:
19-43111.Accept Bond Reductions for Shea Homes’ Parkside Estates
Development Project
A) Authorize the Mayor to acknowledge and accept the Coverage Riders for the Faithful
Performance and Labor and Material Bond Nos. 0195156, 0195157, 0195158, 0195159,
0195160, 0195161, 0195162, and 0195163, and instruct the City Clerk to file the riders
with the City Treasurer; and,
B) Instruct the City Treasurer to notify the surety, Berkeley Insurance Company, of this
action.
Recommended Action:
19-55112.Approve and authorize execution of Contract Amendment No. 2
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AGENDA June 17, 2019
with Rosenow, Spevacek Group, Inc. (RSG) adding additional
compensation of $30,000 and extending the term to December 30,
2019 for Affordable Housing Compliance Monitoring of HOME
Projects
Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to
Professional Services Contract Between the City of Huntington Beach and Rosenow
Spevacek Group, Inc., for Affordable Housing Compliant Monitoring” to December 30,
2019 in the amount not-to-exceed $30,000.
Recommended Action:
19-63613.Approve and authorize execution of a License Agreement with
Southern California Edison (SCE) for Traffic Signal Equipment on
Center Avenue at Bella Terra
A) Approve the “License Agreement” with Southern California Edison for use of the
portion of their property located at the eastern driveway of Bella Terra and Center Avenue
for the location, operation and maintenance of traffic signal equipment; and ,
B) Authorize the Mayor and City Clerk to execute any and all documents to conclude this
transaction.
Recommended Action:
19-64514.Adopt Resolution No. 2019-29 concerning the status and update of
the City’s Circulation Element and Mitigation Fee Program for the
Measure M2 Program
Adopt Resolution No. 2019-29, "A Resolution of the City Council of the City of Huntington
Beach Concerning the Status and Update of the Circulation Element and Mitigation Fee
Program for the Measure M (M2) Program."
Recommended Action:
19-69015.Adopt Resolution No. 2019-43 appointing Charles Adams as Interim
Chief Financial Officer and approving the Employment Agreement
A) Adopt Resolution No. 2019-43, “A Resolution of the City Council of the City of
Huntington Beach Appointing Charles Adams as Interim Chief Financial Officer;” and,
B) Approve and authorize the City Manager to execute the “Employment Agreement
Between the City of Huntington Beach and Charles Adams.”
Recommended Action:
19-69116.Adopt Resolution No. 2019-44 appointing David Kiff as Interim City
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AGENDA June 17, 2019
Manager and approving the Employment Agreement
A) Adopt Resolution No. 2019-44, “A Resolution of the City Council of the City of
Huntington Beach Appointing David Kiff as Interim City Manager;” and,
B) Approve and authorize the Mayor to execute the “Employment Agreement Between the
City of Huntington Beach and David Kiff .”
Recommended Action:
PUBLIC HEARING
19-66117.Public Hearing to consider adopting Resolution No. 2019-42
establishing the Gann Appropriation Limit for Fiscal Year 2019/20
Adopt Resolution No. 2019-42, “A Resolution of the City Council of the City of Huntington
Beach Establishing the Gann Appropriation Limit for Fiscal Year 2019/20” of
$964,662,284.
Recommended Action:
COUNCILMEMBER COMMENTS (Not Agendized)
ADJOURNMENT
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Monday, July 1, 2019, 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
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City of Huntington Beach
File #:19-676 MEETING DATE:6/17/2019
Public Cable Television Authority (PCTA) Exit Plan
City of Huntington Beach Printed on 6/12/2019Page 1 of 1
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City of Huntington Beach
File #:19-702 MEETING DATE:6/17/2019
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: Benzen Properties,
LLC, et al. v. City of Huntington Beach, et al.; OCSC Case No. 30-2019-01070544
City of Huntington Beach Printed on 6/12/2019Page 1 of 1
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City of Huntington Beach
File #:19-701 MEETING DATE:6/17/2019
Pursuant to Government Code § 54954.5(e), the City Council shall recess into Closed Session
to discuss the public employment of City Manager
City of Huntington Beach Printed on 6/12/2019Page 1 of 1
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City of Huntington Beach
File #:19-704 MEETING DATE:6/17/2019
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: Moore (Neal), et al. v.
City of Huntington Beach, et al.; OCSC Case No.: 30-2019-01071686
City of Huntington Beach Printed on 6/12/2019Page 1 of 1
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City of Huntington Beach
File #:19-639 MEETING DATE:6/17/2019
Emrah Erduran of the Pacifica Institute and member of the Greater Huntington Beach
Interfaith Council
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City of Huntington Beach
File #:19-687 MEETING DATE:6/17/2019
Mayor Peterson to call on Victoria Alberty to present the Adoptable Pet of the Month
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City of Huntington Beach
File #:19-688 MEETING DATE:6/17/2019
Mayor Peterson to call on Community Services Director Marie Knight who will present the
Mayor’s Award to Community Services Programs and Services Manager, Chris Slama
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City of Huntington Beach
File #:19-673 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Robin Estanislau, CMC, City Clerk
PREPARED BY:Robin Estanislau, CMC, City Clerk
Subject:
Approve and Adopt Minutes
Statement of Issue:
The City Council/Public Financing Authority regular meeting minutes of May 20, 2019, and the City
Council/Public Financing Authority regular, and Housing Authority special meeting minutes of June 3,
2019, require review and approval.
Financial Impact:
None
Recommended Action:
A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated
May 20, 2019; and,
B) Approve and adopt the City Council/Public Financing Authority regular meeting and the Housing
Authority special meeting minutes dated June 3, 2019.
Alternative Action(s):
Do not approve and/or request revision(s).
Analysis:
None
Environmental Status:
Non-Applicable.
Strategic Plan Goal:
Non-Applicable - Administrative Item
Attachment(s):
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File #:19-673 MEETING DATE:6/17/2019
1. May 20, 2019 CC/PFA regular meeting minutes
2. June 3, 2019 CC/PFA regular meeting and HA special meeting minutes
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Minutes
City Council/Public Financing Authority
City of Huntington Beach
Monday, May 20, 2019
4:00 PM - Council Chambers
6:00 PM - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
A video recording of the 4:00 PM and 6:00 PM portions of this meeting
is on file in the Office of the City Clerk, and archived at
www.surfcity-hb.org/government/agendas/
4:00 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 4:00 PM
ROLL CALL
Present: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
Absent: None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications received by her office following distribution of the Council Agenda packet:
Study Session
Item No. 1 (19-224) — 2 items
1) a PowerPoint communication entitled Public Works Department 2019/2020 Capital Improvement
Program (CIP) received from Travis Hopkins, Interim Assistant City Manager;
2) a PowerPoint communication entitled Fiscal Year 2019/2020 Proposed Budget 'Shaping the Future'
received from Gilbert Garcia, Chief Financial Officer.
PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS
(3 Minute Time Limit) — None
STUDY SESSION
1. 19-224 Discussion of Fiscal Year 2019/20 Proposed Budget, Finance Commission actions,
discussions and recommendations; Capital Improvement Program (CIP) continued
to June 3rd.
Gilbert Garcia, Chief Financial Officer (CFO), jointly presented a PowerPoint Presentation with Lori-Ann
Farrell-Harrison, Interim City Manager, entitled City of Huntington Beach - Fiscal Year 2019/2020
Proposed Budget — Shaping The Future, with slides entitled: FY 2019/20 Proposed Budget; Police
Department Management Staffing; FY 2019/20 Proposed Budget - Police (2); Background on Lieutenant
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Position; Excerpt From Agreement Between the City and the HBPD Police Management Association
October 22, 2018; Succession Planning; Case In Point: Huntington Beach; Challenges to Replenishing
Talent; Succession Planning (2); Citywide Succession Planning Efforts (2); Succession Planning (3);
Future Budget Challenges - Big Independent Cities Excess Pool (BICEP) (4); Finance Commission
Actions, Discussions and Recommendations; Finance Commission (6); and FY 2018/19 Proposed
Budget.
Councilmember Posey and CFO Garcia discussed recommendations included in the presentation as
proposed by the Finance Commission, and Councilmember Posey expressed concerns, describing some
of the actions as “over-stepping” authority.
Mayor Pro Tem Semeta stated her support for recommendations made by the Finance Commission,
describing them as “suggestions” for Council consideration.
Councilmember Hardy offered an understanding for Councilmember Posey's concerns, and shared some
of her own about the Finance Commission's outsourcing recommendations.
Councilmember Delgleize stated her opinion that some of the Finance Commission's recommendations
have caused undue concern for staff, and provided support for Councilmember Hardy's comments
regarding outsourcing. She also discussed her expectations that the City provide opportunities for staff
to move up in their careers.
Councilmember Carr stated her opinion that the Finance Commission recommendation to outsource the
IS Department is a partisan decision, and asked that the Council review and refine the scope of the
Finance Commission.
Mayor Peterson stated that City Council determines policy and approves or denies recommendations
made by any commission.
Mayor Pro Tem Semeta and Interim City Manager Farrell-Harrison discussed the best practices process
for a Request for Proposal (RFP) to outsource a department or any department function.
Councilmember Carr stated her support for ensuring actions by the Finance Commission are City
Council directed.
Councilmember Brenden stated his support for the Council to remove some of the ambiguity to the
Finance Commission purpose by refining their authority, and asked that staff come back with better
language options for the applicable parts of the Municipal Code.
Councilmember Brenden shared details on police staffing including defunded and refunded positions as
related to the defunded Police Lieutenant position.
Councilmember Posey expressed his opinion that the proposed Police Department budget appears to
skew historical staffing levels.
Police Chief Robert Handy explained that the Management Partners findings reported that a number of
the Department issues were related to lack of management and supervisory positions. Councilmember
Delgleize and Chief Handy discussed that there is a staff shortage at nearly every level within the
Department.
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Councilmember Carr confirmed with Chief Handy that the agreement made last October with the Police
Management Association (PMA) requires the defunded Police Lieutenant position be refunded before
any more rank and file officers can be hired.
Councilmember Brenden and Human Resources Director Michelle Warren discussed staff development
opportunities that are provided to encourage staff to gain supervisory, leadership and managerial skills
so they can be prepared for moving up within the City. At the present time there are not any retention
tools available for staff that may be considering retirement. Councilmember Brenden stated that based
on the Strategic Plan agreed to earlier in the year, the Council is expecting a report by October 1 on
Succession Planning, but it appears to him this budget is moving forward with Succession Planning
without waiting for the upcoming report.
Councilmembers Delgleize and Hardy discussed with Director Warren that there isn't yet a citywide or
global plan for Succession Planning, and Councilmembers Delgleize and Hardy suggest that is needed
before considering succession plans for just a couple of departments.
Councilmember Posey and Director Warren discussed hiring policies related to current employees vs.
external applicants.
Councilmember Carr expressed her opinion that there should be a Study Session report on citywide
Succession Planning before any department’s Succession Plans are approved through the current
budget process.
Councilmember Delgleize asked that there be a staff report at least quart erly to update Council on the
efforts being made towards developing a Succession Plan.
Mayor Peterson expressed the need to see a Succession Plan that trains and prepares staff to be
qualified to step into a position vacated through retirement. Interim Manager Farrell-Harrison explained
that the current Department Succession Plan changes being presented are unique and are needed to
stabilize the affected departments where there could be high risk for these single-classification situations,
and stated that Council needs to determine how agile they want to be in these situations.
The Capital Improvement Program (CIP) presentation was postponed to the next regular meeting of June
3rd.
Motion by Posey, second Delgleize, to recess into Closed Session for Items 3-6. With no objections the
motion carried.
RECESSED TO CLOSED SESSION — 5:36 PM
CLOSED SESSION ANNOUNCEMENT(S)
2. 19-615 Mayor Peterson to Announce: Pursuant to Government Code § 54957.6, the City
Council shall recess into Closed Session to meet with its designated labor
negotiator: Lori Ann Farrell, Interim City Manager; also in attendance: Gilbert
Garcia, Chief Financial Officer, Michele Warren, Director of Human Resources
regarding labor negotiations with: City Treasurer
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CLOSED SESSION
3. 19-597 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:
Frankie Choyeski v. City of Huntington Beach; Workers’ Compensation Claim No.
COHB 18 0026.
4. 19-598 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:
Thomas Wilson v. City of Huntington Beach; Workers’ Compensation Claim No.
COHB 16 0346.
5. 19-599 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:
Bedel (Richard) v. City of Huntington Beach, et al.; OCSC Case No. 30-2017-
00958740.
6. 19-605 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, three (3).
7. 19-614 Pursuant to Government Code § 54957.6, the City Council shall recess into Closed
Session to meet with its designated labor negotiator: Lori Ann Farrell, Interim City
Manager; also in attendance: Gilbert Garcia, Chief Financial Officer, Michele
Warren, Director of Human Resources regarding the following: City Treasurer.
6:00 PM — COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:05 PM
ROLL CALL
Present: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Delgleize
INVOCATION
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.
8. 19-539 Marie Knight, City of Huntington Beach Community Services Director
CLOSED SESSION REPORT BY CITY ATTORNEY
City Attorney Gates reported that by a vote of 7-0 the City Council authorized the filing of a lawsuit
against the Public Cable Television Authority (PCTA) to enjoin the PCTA from making purchases and
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May 20, 2019
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large expenditures in an attempt to spend City of Huntington Beach contributions made to the PCTA prior
to the City's withdrawal from PCTA.
AWARDS AND PRESENTATIONS
9. 19-554 Mayor Peterson called on Victoria Alberty to present the Adoptable Pet of the
Month.
Ms. Alberty announced that May 20 is National Dog Rescue Day, and introduced Connie with Ozzie and
Friends Rescue who brought Sweetie. Sweetie is a 2-3 year old Dachshund who is in good health, up-
to-date on her shots, likes other dogs, and is affectionate with people. More details can be found at
www.ozzieandfriendsrescue.org. Ms. Alberty also reminded everyone of the June 16 Wags and Wine
fundraiser.
10. 19-434 Mayor Peterson proclaimed National Public Works Week May 19 through 25 and
presented a proclamation to Public Works Director Travis Hopkins.
Director Hopkins briefly described the services provided by the over 200 employees of the Public Works
Department. He also announced the Public Works Open House at Surf City Night, Tuesday, May 21, 5-9
p.m. at Main and Walnut, where staff will be displaying equipment, answering questions, and describing
how they serve the residents.
11. 19-556 Mayor Peterson called on Kevin Elliott from Code Four to present a check for
$10,000 from the Cherry Blossom Festival to the City’s Sister City Association.
Mr. Elliott provided a brief video overview of the recent Cherry Blossom Festival, and described a great
community effort that attracted over 60,000 visitors during the three-day event. The $10,000 check was
accepted by Frank Nakabayashi, President, Sister City Association, who expressed his appreciation for
this contribution which will make it possible to send four high school students to Anjo, Japan, as
ambassadors of Huntington Beach.
12. 19-425 Mayor Peterson called on City Clerk Robin Estanislau who presented the Mayor’s
Award to Donna Switzer, Deputy City Clerk.
City Clerk Estanislau described Donna’s progression of duties since beginning her employment as a
Passport Agent in May of 2015, to her current position as Deputy City Clerk. She also discussed
Donna’s demonstrated leadership, teamwork and willingness to learn, and how the public, through phone
calls, emails and letters, has acknowledged Donna for her warm and professional demeanor.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications received by her office following distribution of the Council Agenda packet:
Consent Calendar
Item No. 29 (19-584) - Communication received from the Building Industry Association of Southern
California, Inc., Orange County Chapter re: Expanding Use of Government Fees.
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Administrative Items
Item No. 38 (19-613):
1) A PowerPoint communication received from Michael Gates, City Attorney, entitled City Attorney
Proposal.
2) Email communication submitted by Lynn Unger.
Item No. 39 (19-580) — Email communication submitted by Lynn Unger.
PUBLIC COMMENTS (3 Minute Time Limit) — 8 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.
Bob Wentzel was called to speak and shared some of his experiences at the National Comic Arts
Festival held May 17-19, and thanked staff for a successful event. (01:56:56)
Ralph Bauer, former Mayor and long-time resident of Huntington Beach, was called to speak and
thanked the Council for approving the purchase of the Navigation Center. Mr. Bauer asked the Council
for direction on several issues he would like to discuss directly with "decision makers." Mayor Peterson
asked Mr. Bauer to complete a blue card for staff follow-up. (02:00:02)
Barbara Devlin, a 50+ year resident of Huntington Beach, a member of Friends of the Library, and
representing the Huntington Beach Library Book Discussion Group, was called to speak and asked that
the City Council re-instate their no-cost monthly meeting place at Central Library. (02:02:51)
Kathryn Levassiur, a resident of Huntington Beach, was called to speak and shared her opinions about
the potential sustainable revenue from Short-Term Rentals, and encouraged the City to implement
processes to regulate and tax this service which many residents are already providing. (02:06:06)
Bart P. & Diana McGrath, Founders of the Huntington Beach Concours d'Elegance, were called to speak
and invited everyone to the 34th Annual Huntington Beach Concours d'Elegance to be held on Saturday
and Sunday, June 1 and 2 at Central Library. This event supports the Children's Resource Center wing
at Central Library. (02:08:47)
Kathy Carrick was called to speak and read parts of an article describing issues related to Navigation
Centers in San Francisco, and expressed her hope that the City of Huntington Beach has a detailed plan
to prevent the same issues from developing here. (02:11:21)
Adam Wood, Building Industry Association of Orange County, was called to speak and stated opposition
to Consent Calendar Item No. 29 (19-584) regarding Resolution No. 2007-17 to expand the permitted
uses of the Affordable Housing Trust Fund. (02:14:26)
Ryan Farsai was called to speak and shared his opinions about a United Nations report and Opportunity
Zones in the U. S. (02:17:22)
COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Posey reported attending an Association of California Cities — Orange County (ACC-
OC) Golden Hub Awards event where the City of Huntington received three awards: 1) City Manager of
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May 20, 2019
Page 7 of 22
the Year; 2) City Prosecutor Program; and 3) Sustainable Business Category for Certification of Local
Businesses. Councilmember Posey also reported attending a Vector Control meeting, meeting with the
Municipal Employee Organization (MEO), speaking with a representative of the Police Officers'
Association (HBPOA), and the Economic Development Committee (EDC) visit to FormDecor Furniture
Rental.
Councilmember Carr reported meeting with the Municipal Employee Organization (MEO).
Councilmember Brenden reported meeting with the Municipal Employee Organization (MEO), and
attending the Public Cable Television Authority (PCTA) Board meeting.
Councilmember Delgleize reported attending the Orange County Transit Authority Board and
Government Affairs meetings, and an Orange County Health Care meeting.
Mayor Pro Tem Semeta reported attending a Design Review Board meeting.
CITY MANAGER’S REPORT — None
CITY ATTORNEY’S REPORT
13. 19-612 City Attorney reported on status of Councilmember Posey’s initiative to explore
options to challenge CalPERs (investment strategy)
City Attorney Gates was able to share that Council has provided authorization to move forward with
consulting with other legal experts regarding possible legal action and opportunities. Councilmember
Posey briefly commented on an editorial he wrote two years ago, and his particular concerns related to
the path of environmental social governance investing. He shared his opinion that a past investment
strategy has not paid off well for its investors, and for municipal partners like us. He thanked the City
Attorney and his colleagues for their support.
CONSENT CALENDAR
Councilmember Posey pulled Item No. 29 for further discussion.
Councilmember Brenden pulled Item Nos. 15, 23, 26, and 27 for further discussion.
14. 19-577 Approved the interim appointment of David Kiff to the position of City Manager until
the ongoing national recruitment process is completed
A motion was made by Brenden, second Posey to approve and authorize the appointment of David Kiff
to the position of Interim City Manager.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
15. 19-379 Accepted bid and authorized execution of a construction contract with California
Professional Engineering, Inc. in the amount of $643,490 for the traffic signal
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modifications at the intersection of Main Street and Utica Avenue/17th Street, and
the installation of a new traffic signal at the intersection of Bolsa Chica Street and
Pearce Drive - CC-1488; and, appropriated Traffic Impact funds for construction and
authorized change orders not to exceed 15 percent
Councilmember Brenden pulled this item to discuss with Transportation Manager Bob Stachelski some
details on collision history and the expected traffic flow impact for the proposed installation of a new
traffic signal at Bolsa Chica and Pearce Drive.
A motion was made by Brenden, second Hardy to accept the lowest responsive and responsible bid
submitted by California Professional Engineering, Inc. in the amount of $643,490; and, appropriate
$125,739 from the undesignated Traffic Impact Fee fund balance to Traffic Impact Fee account
20690007.82700; and, authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney; and, authorize the Director of Public Works to execute change orders not
to exceed a total of 15 percent of the contract construction costs or $96,524.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
16. 19-381 Accepted bid and authorized execution of a construction contract with Elecnor
Belco Electric, Inc. in the amount of $320,055 for the traffic signal modification at
the intersection of Gothard Street and Center Avenue — CC-1489; and,
appropriated Traffic Impact funds for construction and authorize change orders not
to exceed 15 percent
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by Elecnor Belco Electric, Inc. in the amount of $320,055; and, appropriate $45,209 from the
undesignated Traffic Impact Fee fund balance to Traffic Impact Fee account 20690007.82700; and,
authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City
Attorney; and, authorize the Director of Public Works to execute change orders not to exceed a total of
15 percent of the contract construction costs or $48,008.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
17. 19-451 Accepted bid and authorized execution of a construction contract with Calpromax
Engineering, Inc. in the amount of $229,000 for the traffic signal modification at the
intersection of Newland Street and Slater Avenue — CC-1490; and, appropriated
Traffic Impact funds for construction and authorized change orders not to exceed
15 percent
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by Calpromax Engineering, Inc. in the amount of $229,000; and, appropriate $112,150 of
undesignated Traffic Impact funds to Traffic Impact project account 20690007.82700; and, authorize the
Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; and,
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authorize the Director of Public Works to execute change orders not to exceed a total of 15 percent of
the contract construction costs or $34,350.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
18. 19-453 Accepted bid and authorized execution of a construction contract with Alfaro
Communications Construction, Inc. in the amount of $289,075 for the traffic signal
modification at the intersection of Newland Street and Ellis Avenue — CC-1491; and
appropriated Traffic Impact funds for construction and authorized change orders
not to exceed 15 percent
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by Alfaro Communications Construction, Inc. in the amount of $289,075; and, appropriate
$100,404 of undesignated Traffic Impact funds to Traffic Impact project account 20690007.82700; and,
authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City
Attorney; and, authorize the Director of Public Works to execute change orders not to exceed a total of
15 percent of the contract construction costs or $43,361.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
19. 19-454 Accepted bid and authorized execution of a construction contract with International
Line Builders, Inc. in the amount of $269,016 for the traffic signal modification at the
intersection of Goldenwest Street and Heil Avenue, CC-1492; and, appropriated
Traffic Impact funds for construction and approved change orders not to exceed 15
percent
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by International Line Builders, Inc. in the amount of $269,016; and, appropriate $130,680 of
undesignated Traffic Impact Fee Fund Balance to account 20690007.82700; and, authorize the Mayor
and City Clerk to execute a construction contract in a form approved by the City Attorney; and, authorize
the Director of Public Works to execute change orders not to exceed a total of 15 percent of the contract
construction costs or $40,352.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
20. 19-441 Accepted bid and authorized execution of a construction contract with Alfaro
Communications Construction, Inc. in the amount of $298,872 for the traffic signal
modification at the intersection of Gothard Street and Slater Avenue — CC-1493;
and, appropriated Traffic Impact funds for construction and authorized change
orders not to exceed 15 percent
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A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by Alfaro Communications Construction, Inc. in the amount of $298,872; and, appropriate
$49,325 of undesignated Traffic Impact Fee fund balance to Traffic Impact Fee account
20690007.82700; and, authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney; and, authorize the Director of Public Works to execute change orders not
to exceed a total of 15 percent of the contract construction costs or $44,830.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
21. 19-495 Accepted bid and authorized execution of a construction contract with Select
Electric, Inc. in the amount of $308,803 for the traffic signal interconnect on
Newland Street from Ellis Avenue to Warner Avenue, CC-1494; and, authorized
change orders not to exceed 15 percent
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by Select Electric, Inc. in the amount of $308,803; and, authorize the Mayor and City Clerk to
execute a construction contract in a form approved by the City Attorney; and, authorize the Director of
Public Works to execute change orders not to exceed a total of 15 percent of the contract construction
costs or $46,320.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
22. 19-560 Awarded and authorized execution of a construction contract with PALP, Inc. dba
Excel Paving Company in the amount of $2,916,192 for the Edinger Avenue
Rehabilitation, Algonquin Street Rehabilitation, and Delaware Street Rehabilitation
Project, CC-1575
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible base
bid submitted by PALP, Inc. dba Excel Paving Company in the amount of $2,916,192.00; and, authorize
the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
23. 19-478 Accepted the lowest responsive and responsible bid and authorized execution of a
construction contract with All American Asphalt in the amount of $3,012,239 for the
Residential Overlay of Maintenance Zone 6, CC-1579; and, appropriated additional
Gas Tax and Measure M funds for construction
Councilmember Brenden pulled this item to inform the public of the boundary streets for this project.
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A motion was made by Brenden, second Semeta to accept the lowest responsive and responsible bid
submitted by All American Asphalt Company in the amount of $3,012,239; and, authorize the Mayor and
City Clerk to execute a construction contract in a form approved by the City Attorney; and, appropriate
$175,000 from the undesignated Gas Tax (207) fund balance to 20790056.82300; and, appropriate
$775,000 from the undesignated Measure M (213) fund balance to account 21390002.82300.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
24. 19-565 Awarded and authorized execution of a construction contract in the amount of
$65,170.00 to MK Construction, Inc. for the Ocean View Estates (OVE) Parking Lot
Expansion Project, CC-1580
A motion was made by Brenden, second Posey to accept the lowest responsive and responsible bid
submitted by MK Construction, Inc., in the amount of $65,170.00; and, authorize the Mayor and City
Clerk to execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
25. 19-569 Authorized an additional $35,745 in expenditures for MSC-520 Youth Shelter ADA
Improvements and Roof Replacement project
A motion was made by Brenden, second Posey to authorize Public Works to expend up to $71,490, an
additional $35,745, in contingency funds to complete the construction of MSC-520 Youth Shelter ADA
Improvements and Roof Replacement.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
26. 19-407 Adopted Resolution No. 2019-24 amending the City’s Classification Plan by adding
the Job Classification of Risk Management Analyst and establishing the
compensation
Councilmember Brenden pulled this item to discuss details with Human Resources Director Michelle
Warren regarding the process to add a Job Classification as part of the Succession Planning effort.
A motion was made by Peterson, second Posey to adopt Resolution No. 2019-24, "A Resolution of the
City Council of the City of Huntington Beach Amending the City's Classification Plan by Adding the
Classification of Risk Management Analyst," and establish the compensation.
The motion carried by the following vote:
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AYES: Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: Brenden, and Carr
27. 19-471 Adopted Resolution No. 2019-25 authorizing the City to levy the Annual Retirement
Property Tax For Fiscal Year 2019/20 to pay for Pre-1978 Employee Retirement
Benefit Levels
Councilmember Brenden pulled this item to discuss details with Interim City Manager Farrell Harrison.
A motion was made by Brenden, second Hardy to adopt Resolution No. 2019-25, "A Resolution of the
City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2019/20
to Pay for Pre-1978 Public Employee Retirement Benefits" of $0.01500 per $100 of assessed valuation.
The tax rate of $0.01500 would continue the tax rate included in the current Fiscal Year 2018/19 Adopted
Budget.
The motion carried by the following vote:
AYES: Brenden, Carr, Posey, Delgleize, and Hardy
NOES: Semeta, and Peterson
28. 19-559 Adopted and authorized recordation of Resolution No. 2019-26 ordering the
Summary Vacation of an existing Walkway Easement to the former Franklin School
Site
A motion was made by Brenden, second Posey to adopt Resolution No. 2019-26, "A Resolution of the
City Council of the City of Huntington Beach Ordering the Summary Vacation of a Public Service
Easement for Pedestrian Walkway Purposes Generally Located Between Spa Drive and the Former
Franklin School in the City of Huntington Beach" (Attachment 1); and, instruct the City Clerk to record
Resolution No. 2019-26 and the attached exhibits with the Orange County Recorder.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
29. 19-584 Approved as amended to bring Resolution 2019-34 back to Council as part of
funding options for Homeless Navigation Center improvements adopted Resolution
2019-34 amending Resolution No. 2007-71 to expand the permitted uses of the
Affordable Housing Trust Fund
Councilmember Posey pulled this item to state his concerns and opposition because in his mind this will
just dilute the efforts to meet the Regional Housing Needs Assessment (RHNA) requirements, and
requested that the item be continued.
Councilmember Delgleize asked Community Development Director Ursula Luna-Reynosa to explain the
ordinance that determined the goals and objectives related to the Housing Element, including
Homelessness, and the resolution that established the fee and use of Housing Element funds. Director
Luna-Reynosa further explained staff believes this resolution will provide more flexibility in use of those
funds.
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Chief Assistant City Attorney Mike Vigliotta explained that this item does not increase or add fees, but
only addresses how the funds can be used.
Councilmember Brenden expressed concerns about changing how the funds could be used.
Councilmember Hardy and staff discussed current low-income housing projects and that housing
production is required to receive Regional Housing Needs Assessment (RHNA) credit.
Councilmember Delgleize asked staff for a report on the spending history for specific categories in the
Housing Element.
A motion was made by Hardy, second Brenden to bring Resolution 2019-34 back to Council as part of
funding options for Homeless Navigation Center Improvements.
The motion carried by the following vote:
AYES: Brenden, Carr, Delgleize, and Hardy
NOES: Semeta, Peterson, and Posey
30. 19-607 Adopted Resolution No. 2019-38 modifying benefits for Non-Represented
Employees including the elected City Attorney, City Clerk and City Treasurer
A motion was made by Brenden, second Posey to adopt Resolution No. 2019-38, "A Resolution of the
City Council of the City of Huntington Beach Modifying Benefits for Non-Represented Employees
Including the Elected City Attorney, City Clerk and City Treasurer."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
31. 19-563 Approved and authorized execution of a Professional Services Contract with Bartel
Associates, LLC in the Amount of $122,200 to perform Actuary Consulting Services
A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to
execute the "Professional Service Contract Between the City of Huntington Beach and Bartel Associates,
LLC for Actuary Consulting Services."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
32. 19-570 Approved and authorized execution of a three year Professional Service Contract
with Davis Farr LLP in the amount of $151,120 to perform Financial Audit Services
A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to
execute the "Professional Service Contract between the City of Huntington Beach and Davis Farr LLP for
Financial Audit Services."
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The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
33. 19-572 Approved and authorized execution of a Non-Exclusive License Agreement
between the City of Huntington Beach and Continuing Development Incorporated
(CDI) at 17241 Oak Lane for child development programs
A motion was made by Brenden, second Posey to approve and authorize the Mayor and City Clerk to
execute the "Non-Exclusive License Agreement between the City of Huntington Beach and Continuing
Development Incorporated."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
34. 19-575 Approved and authorized execution of Second Amendment to Site License
Agreement between the City of Huntington Beach and T-Mobile West Tower, LLC at
Murdy Park
A motion was made by Brenden, second Posey to approve "Second Amendment to Site License
Agreement" between the City of Huntington Beach and T-Mobile West Tower, LLC; and, authorize the
City Manager, and City Clerk to execute the Second Amendment to Site License Agreement and other
related documents.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
35. 19-576 Approved and authorized execution of a five-year License Agreement with Southern
California Edison (SCE) for Gisler Park
A motion was made by Brenden, second Posey to approve the "License Agreement" with Southern
California Edison for the use of 10.5 acres of property known as Gisler Park (Contract No.9.2247), and
authorize the Mayor and City Clerk to execute any and all documents necessary to conclude this
transaction.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
36. 19-590 Adopted Ordinance No. 4180 repealing Ordinance No. 4130 and adding Chapter 3.50
to the Huntington Beach Municipal Code relating to State Video Franchises.
Approved for introduction May 6, 2019 — Vote: 7-0
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A motion was made by Brenden, second Posey to adopt Ordinance No.4180, "An Ordinance of the City
Council of the City of Huntington Beach Repealing Ordinance No. 4130 and Adding Chapter 3.50 to the
Huntington Beach Municipal Code Relating to State Video Franchises."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
PUBLIC HEARING
37. 19-492 Adopted Resolution No 2019-31 to set municipal utility rates for water meters;
Adopted Resolution No 2019-32 to set municipal utility rates for water commodity
charges; and, Adopted Resolution 2019-30 to set municipal utility rates for sewer
service charges
Interim City Manager Farris Harrell introduced Interim Assistant City Manager Travis Hopkins who
introduced Public Works Department staff members including Chris Davis, Admin Analyst Senior, who
presented a PowerPoint communication entitled City of Huntington Beach - May 20, 2019 - Water and
Sewer Rate Adjustment with slides entitled Modernizing the Water Rate Adjustment Methodology; Water
Rates Background; Proposed Monthly Water Meter Rate; Residential Water Meter Charges; Capital
Charge; Sewer Rates (2); Monthly Impacts of Proposed Adjustments On Fixed Charges for a Single
Family Residence; Comparison of Regional Agencies' Water Rates ;Proposition 218 Procedures;
Recommended Actions; and Questions.
Mayor Peterson opened the Public Hearing for this item.
City Clerk Robin Estanislau announced Supplemental Communication received for this item after
distribution of the Agenda Packet:
Item 37. (19-492) 2 items:
1) a PowerPoint communication received from Travis Hopkins, Interim Assistant City Manager, entitled
Water and Sewer Rate Adjustment.
2) 376 written protests received regarding Resolution Nos. 2019-30, 2019-31, and 2019-32 to set
municipal utility rates for water meters, water commodity charges, and sewer service charges.
Connie Ngo was called to speak and voiced her opposition to Public Hearing Item No. 37 (19-492)
setting municipal utility rates for water meters, water commodity charges and sewer service charges.
(03:09:37)
Eva Weisz was called to speak and voiced her opposition to Public Hearing Item No. 37 (19-492) setting
municipal utility rates for water meters, water commodity charges and sewer service charges. (03:13:01)
David Martin, a resident of Huntington Beach, was called to speak and voiced his opposition to Public
Hearing Item No. 37 (19-492) setting municipal utility rates for water meters, water commodity charges
and sewer service charges. (03:13:50)
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Mike Hewitt, a 24-year resident of Huntington Beach, was called to speak and voiced his support for
decreased sewer service charges, and opposition to increased municipal utility rates for water meters,
and water commodity charges regarding Public Hearing Item No. 37 (19-492). (03:15:54)
City Clerk Estanislau clarified that the total number of valid written protests received is approximately
691.
There being no one else present to speak, Mayor Peterson closed the Public Hearing.
Councilmember Delgleize and Manager Hopkins discussed details related to meter size, maintenance
fee for the water system, the "water fee" listed on property tax bills, and confirmed that notices are sent
to all residents as well as property owners.
Councilmember Posey and Manager Hopkins discussed the most compelling reasons for rate increases
is to maintain fiscal sustainability; maintain a good credit rating which allows for borrowing, if necessary,
at lower interest rates; the reserve policy sets aside funds to replace a water well which protects the
cheapest source of water for the City; and maintaining adequate reserve funds allows for quick
infrastructure replacement such as in the case of an earthquake. Councilmember Posey stated his
support for this item.
Councilmember Hardy and Manager Hopkins discussed details relating to the drop in rate for multi-family
units and increase for single-family units.
City Attorney Michael Gates explained that State law controls the water rate methodology and formula,
and an independent legal expert worked with the Public Works staff in determining these changes.
Mayor Pro Tem Semeta pointed out that Huntington Beach rates are still low compared to neighboring
cities.
A motion was made by Hardy, second Delgleize to adopt Resolution 2019-31, "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" and, adopt Resolution 2019-32,
"A Resolution of the City Council of the City of Huntington Beach Readopting the City's Water
Commodity Rates;" and, adopt Resolution 2019-30, "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."
**FIVE AFFIRMATIVE VOTES ARE REQUIRED TO ADOPT THE RESOLUTIONS**
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy
NOES: Peterson
ADMINISTRATIVE ITEMS
38. 19-613 Approved creation a new Chief Assistant City Attorney position; Adopted
Resolution No. 2019-36 amending Non-Associated Salary Schedule for City
Attorney and Chief Assistant City Attorney; Adopted Resolution No. 2019-35
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increasing the salary of the City Attorney; and, delegated authority to execute
employment agreements for Chief Assistant City Attorney
City Attorney Michael Gates presented a PowerPoint communication entitled City Attorney Proposal with
slides entitled City Attorney Proposal; RECAP - New Approach/Philosophy; RECAP - Reorganization To
Date; RECAP - Increased Productivity; RECAP - Increased Effectiveness (2); Senior Trial Counsel; Part
1 of Proposal; Org Chart & Reclassification; Part 2 of Proposal; Proposed Salary & Comparison - Chief
Assistant City Attorney; Part 3 of Proposal; Proposed Salary & Comparison - City Attorney; Budget
Impact of Proposals (2); City Attorney Proposal; and City Attorney Proposal - Questions.
Councilmember Posey and City Attorney Gates discussed details related to dollars saved over-time,
return of a City vehicle, income generated and received through the City Prosecutor program which is
added to the General Fund, and the expected results if these proposals are approved. Councilmember
Posey stated that if these proposals are approved, he would expect that there would be quarterly budget
reports from the City Attorney's office.
Mayor Pro Tem Semeta stated her support for the three proposals, and reminded everyone that an
elected official can only receive a salary increase through seeking City Council's approval.
Councilmember Delgleize and City Attorney Gates discussed the proposed position and salary changes
and the methodology used in preparing the 2019/2020 budget.
Councilmember Hardy expressed her appreciation for the presentation and good work coming out of the
City Attorney's Office, and stated her concern in supporting salary increases for top-level positions when
hundreds of other staff have not received the same benefit.
Councilmember Carr expressed her opinion that the City Attorney's Office would be management heavy
if this item is approved, and supports increasing compensation for the two employees, rather than
creating another position title, as the best way to proceed. Also, she cannot support a compensation
increase for an elected official.
Mayor Peterson expressed that the money saved every time the City Attorney's Office is successful in
reducing or eliminating high-dollar lawsuits, and the department changes to reduce and maintain the
budget, justifies his support for this item.
Councilmember Delgleize stated her support for Councilmember Carr's comments.
Councilmember Brenden reviewed some of the specific budget reductions which he applauded, but
stated that in his opinion, it is counter-productive to then turn around and place most of those savings
into salaries. City Attorney Gates explained that this budget honors the request for a one percent (1%)
reduction. Councilmember Brenden and Human Resources Director Michelle Warren discussed that the
cities selected for showing compensation comparables had to have a City Attorney with matching
classifications, and every city that met the criteria is shown.
A motion was made by Hardy, second Delgleize to approve the creation of a new Chief Assistant City
Attorney position in the City Attorney’s Office, with the compensation level to remain status quo.
A substitute motion was made by Peterson, second Semeta to create a new Chief Assistant City
Attorney position in the City Attorney's Office; and, adopt Resolution No. 2019-36, "A Resolution of the
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City Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented
Employees by Changing the Compensation of the Chief Assistant City Attorney Classification" amending
Non-Associated Resolution 2016-50 Salary Schedule for City Attorney and Chief Assistant City Attorney;
and, adopt Resolution No. 2019-35, "A Resolution of the City Council of the City of Huntington Beach
Modifying Salary of the Elected City Attorney;" and, delegate authority to the City Manager/Interim City
Manager and City Attorney to execute employment agreements for the Chief Assistant City Attorneys.
The motion failed by the following vote:
AYES: Semeta, Peterson, and Posey
NOES: Brenden, Carr, Delgleize, and Hardy
The motion made by Hardy, second Delgleize to create a new Chief Assistant City Attorney position in
the City Attorney's Office, carried by the following vote:
AYES: Brenden, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: Carr
A motion was made by Carr, second Peterson to adopt Resolution No. 2019-36, "A Resolution of the City
Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented Employees
by Changing the Compensation of the Chief Assistant City Attorney Classification" amending Non-
Associated Resolution 2016-50 Salary Schedule for Chief Assistant City Attorney.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, and Posey
NOES: Delgleize, and Hardy
A motion was made by Peterson, second Semeta to adopt Resolution No. 2019-35, "A Resolution of the
City Council of the City of Huntington Beach Modifying Salary of the Elected City Attorney."
The motion carried by the following vote:
AYES: Brenden, Semeta, Peterson, Posey and Hardy
NOES: Carr, and Delgleize
A motion was made by Peterson, second Posey to delegate authority to the City Manager/Interim City
Manager and City Attorney to execute employment agreements for the Chief Assistant City Attorneys.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
Due to an outstanding commitment, Mayor Peterson asked that Mayor Pro Tem Semeta lead the
remainder of the meeting in his absence.
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39. 19-580 Adopted Resolution No. 2019-33 to modify the compensation of the Elected City
Treasurer to more appropriately align it with the responsibilities and duties of the
position and bring it into alignment with comparable positions within the City
A PowerPoint communication presented by Alisa Backstrom, City Treasurer, entitled Office of the City
Huntington Treasurer - City of Huntington Beach with slides entitled: City Treasurer - Alisa Backstrom;
City Treasurer - Selected Activities (2); Summary Investments; City Treasurer - Selected
Accomplishments (2); City Treasurer - Salary Schedule; and Concluding Remarks.
Councilmember Delgleize and City Treasurer Backstrom discussed that the position hours are
compensated at 20 hours per week.
Councilmember Carr and City Treasurer Backstrom discussed the position history related to transitioning
to a part-time position when some responsibilities were moved to the Finance Department and only
overseeing investments became the responsibility of the City Treasurer.
Councilmember Brenden and City Treasurer Backstrom discussed that 20 hours per week was
determined to be an average, and Treasurer Backstrom stated that she typically works over that amount
of hours each week.
Councilmember Hardy explained that to the best of her knowledge the salary, number of hours, and
salary cap for this position were set by Council after the former City Treasurer was elected to the County
Treasurer position. The need for a new position appointment provided the opportunity to meet the
realities of the 2008 recession.
Mayor Pro Tem Semeta stated her position that an elected official does not have the opportunity to
receive step increases as other staff do, therefore she supports this item.
A motion was made by Hardy, second Delgleize to adopt Resolution No. 2019-33, "A Resolution of the
City Council of the City of Huntington Beach Modifying the Salary and Benefits for Non-Represented
Employees Including the City Treasurer."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy
NOES: None
ABSENT: Peterson (left meeting at 9 PM)
ORDINANCES FOR INTRODUCTION
40. 19-594 Created a new Assistant Chief Financial Officer position by approving for
introduction Ordinance No. 4181; adopted Resolution No. 2019-37 amending the
Non-Associated Salary Resolution to add the classification of Assistant Chief
Financial Officer and establish compensation; and delegated authority to execute
the employment agreement for the Assistant Chief Financial Officer
Interim City Manager Farrell Harrison provided a detailed background for this item and introduced Chief
Financial Officer Gilbert Garcia who presented a PowerPoint communication entitled Finance
Department with slides entitled Finance Department Proposal, Net Neutral Budget Impact, City of
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Huntington Beach Proposed Budget — FY 2019/20 and Finance Department Proposed Organization
Chart, Benefits, and Other Cities with Assistant Chief Financial Officer or Deputy Finance Director.
Councilmember Posey confirmed with CFO Garcia that the proposed budget does not include the
proposed Assistant Chief Financial Officer position, however the budget cuts have been identified should
the Council approve the new position. There was further discussion on details related to Other Contract
Services and Interdepartmental Charges budget line items.
Councilmember Carr expressed concern that a staff position is being requested before the citywide
Succession Plan has been considered, and that the requested position has not been budgeted for.
Councilmember Delgleize and CFO Garcia discussed the proposed staff changes and line items that will
be adjusted to keep the budget net neutral.
Councilmember Brenden and CFO Garcia reviewed the proposed staff changes in more detail.
Mayor Pro Tem Semeta expressed her support for looking at the succession plans department by
department, agreed with the Interim City Manager Farrell Harrison that the Finance Department is the
backbone of all City departments, and stated her support for this item.
A motion was made by Posey, second Delgleize to after the City Clerk reads by title, approve for
introduction Ordinance No. 4181, "An Ordinance of the City of Huntington Beach Amending the
Huntington Beach Municipal Code by Amending Section 2.76.010 Thereof Related to Exclusions From
the Competitive Service" by adding the Assistant Chief Financial Officer; and, adopt Resolution No.
2019-37, "A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits
for Non-Represented Employees By Adding the Assistant Chief Financial Officer Classification and
Establishing the Compensation;" and, delegate Authority to the City Manager/Interim City Manager and
City Attorney to Execute Employment Agreements for the Assistant Chief Financial Officer.
The motion carried by the following vote:
AYES: Brenden, Semeta, Posey, and Delgleize
NOES: Carr, and Hardy
ABSENT: Peterson
COUNCILMEMBER ITEMS
41. 19-595 Approved as amended item submitted by Councilmembers Brenden and Posey -
Staff Report on Current Status of Regional Housing Needs Assessment (RHNA)
Process
Councilmembers Brenden and Posey made a joint presentation to describe history and details on the
Regional Housing Needs Assessment (RHNA) process. Their objective is to ensure that Council is fully
aware of the process and takes action with full knowledge for Cycle Six which will become effective in
October 2021. Councilmembers Brenden and Posey would like to see staff involved in the process,
monitoring the process and providing monthly updates. Councilmember Posey explained that meetings
are the first Monday of every month at 900 Wilshire Blvd., 17th Floor, Los Angeles, and are open to the
public. The meeting agendas are public and available at scag.ca.gov.
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Mayor Pro Tem Semeta, as the current SCAG Representative, stated she has involved staff who do
observe the RHNA Subcommittee meetings via webcast, and she supports the effort to keep all parties
aware and informed.
Councilmember Hardy provided a brief history of what happened in 2013 when the current RHNA cycle
started, and explained that when changes were made to the Beach Edinger project is when problems
developed. Councilmember Hardy asked that staff and Council look at creative solutions or additional
options that may be available for inclusion in the new cycle.
Councilmember Posey stated that the intentions for a Study Session are to ensure that Council is better
educated, can be one step ahead and properly prepared.
Councilmember Carr stated her support for being proactive and aggressive on this issue to ensure
equitable RHNA numbers in line with other area cities.
Councilmember Brenden expressed that the proposed Study Session is expected to result in action
items for staff and will identify appropriate ways of communicating with the RHNA Subcommittee.
Councilmember Posey stated that the Agendas are available on-line, as well as the timeline which shows
the protest period, provides an email for comments, and that there is public comment time during
meetings.
Mayor Pro Tem Semeta clarified that Council needs to approve any public comments or responses that
are presented to the RHNA Subcommittee.
Community Development Director Ursula Luna-Reynosa stated that the final proposed RHNA
methodology will be released in early July with public hearings scheduled for August/September, and a
Study Session before the public hearings would be very beneficial.
A motion was made by Brenden, second Posey as amended to direct the City Manager/Interim City
Manager to conduct, within 60 days, a Study Session on the RHNA 6th Cycle Planning process as it
relates to Huntington Beach and to provide monthly updates throughout the remainder of the Planning
Process.
Study Session needs to include:
1) Current status report of RHNA Subcommittee work.
2) General overview of the new 6th Cycle RHNA methodology.
3) Review of all pending legislation that could change the RHNA requirement from a simple zoning
compliance question to an actual housing production requirement.
4) An assessment of potential options to expand City engagement in the RHNA Planning Process.
5) A discussion of the impact of the City's falling short of its 5th Cycle RHNA (SB35 exposure, SB2
funds, park grants, decertified Housing Element).
6) Identifying RHNA unit eligibility credits.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Posey, Delgeize, and Hardy
NOES: None
ABSENT: Peterson
COUNCILMEMBER COMMENTS (Not Agendized)
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Councilmember Hardy congratulated the children recognized by the Children's Needs Task Force Youth
Character Awards, and reported attending the National Comic Society (NCS) Fest.
Councilmember Delgleize reported attending the 11th Annual Orange County Visitor Association (OCVA)
Tourism Conference, making a Business Visit to Restaurant Depot, and thanked everyone who
participated in the Special Meeting regarding ASCON issues.
Councilmember Brenden reported participating in the JMG Golf Tournament which benefits the Boys and
Girls Club of Huntington Beach, taking a tour of the homeless center at Lighthouse Church in Costa
Mesa, attending the Sneak Peek OC Fair 2019, the Huntington Beach Chamber of Commerce Annual
Gala, the Children's Needs Task Force "Youth Character Awards - Bella Terra Wall of Fame," the
National Comic Society (NCS) Fest, and the Mercy House Annual Gala.
Councilmember Carr reported touring the Restaurant Depot, attending the NCS Fest Public Opening
Reception, Speaking at the Chamber of Commerce AM Connect Breakfast, attending the Huntington
Beach Chamber of Commerce Annual Gala, the Mercy House Annual Gala, the Special Meeting
regarding ASCON issues, and reminded everyone of the June 1st AIDs Walk at the Pier.
Councilmember Posey reported attending the Celebration in Honor of retired City Manager Fred Wilson,
and touring the Huntington Beach AES power plant which is switching from ocean water to air cooling.
Mayor Pro Tem Semeta reported attending a State Lands Commission meeting, the Senior Scam
Stoppers Town Hall sponsored by Supervisor Steele, attending a Special Olympics Fun Raiser, and
congratulated the City Attorney's Office, Antonia Graham, and Fred Wilson on their Association of
California Cities - Orange County (ACC-OC) Golden Hub awards.
ADJOURNMENT at 9:55 PM to the next regularly scheduled meeting of the Huntington Beach City
Council/Public Financing Authority on Monday, June 3, 2019, 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
_______________________________________
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
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Minutes
City Council/Public Financing Authority and
Special Meeting of the Housing Authority
City of Huntington Beach
Monday, June 3, 2019
4:00 PM - Council Chambers
6:00 PM - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
A video recording of the 4:00 PM and 6:00 PM portions of this meeting
is on file in the Office of the City Clerk, and archived at
www.surfcity-hb.org/government/agendas/
4:00 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 4:00 PM
ROLL CALL
Present: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
Absent: None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications received by her office following distribution of the Council Agenda packet:
Study Session
Item No. 1 (19-609) A PowerPoint communication submitted by Travis Hopkins, Interim Assistant City
Manager, entitled Public Works Department FY 2019/20 Capital Improvement Program (CIP).
PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS
(3 Minute Time Limit) — 1 Speaker
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.
Steve Engel, a 30-year resident of Huntington Beach, Huntington Beach Tree Society and Central Park
Subcommittee member, was called to speak and stated his appreciation for the City including funding in
the budget for the parks, and their efforts to keep the parks safe and clean. (00:01:02)
STUDY SESSION
1. 19-609 The Public Works Department presented the FY 2019/20 proposed Capital
Improvement Program (CIP)
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A PowerPoint communication was presented by Interim Public Works Director Tom Herbel titled: FY
2019/2020 Capital Improvement Program (CIP) with slides entitled: 18/19 Successes, National Public
Works Week, 18/19 Accomplishments (3), Capital Improvement Program (CIP), FY 19/20 CIP Budget,
CIP Funding Sources, Facilities and Fleet Infrastructure, Facilities $22.8M, Neighborhood Infrastructure,
Neighborhood $4.2M, Parks and Beaches $4.5M, Sewer Infrastructure, Sewer Improvements $5.0M,
Street Infrastructure, Streets & Transportation $9.4M (2), Transportation Infrastructure, Roadway
Infrastructure, Streets & Transportation (cont.), Water Infrastructure (2), Water Improvements $4.0M,
Unfunded/Deferred Projects Using General Funds, Public Works Commission, and Questions.
Councilmember Posey and Interim Assistant City Manager Hopkins discussed the Sports Complex turf
and the status of the non-toxic efforts project. A non-toxic project report will be coming to Council soon.
Interim Manager Hopkins confirmed that the bluff top railing replacement project is for the City Beach and
Dog Park areas. Councilmember Posey and Interim Director Herbel discussed sources for the $4.5M
which includes Park Development Impact fees.
Regarding streetlights, Councilmember Posey and Assistant to the City Manager Antonia Graham
discussed that by changing from incandescent to led bulbs, Southern California Edison (SCE) bills
dropped from approximately $152K per month to $35K per month. Maintenance costs have also
decreased.
Councilmember Carr, Interim Director Herbel and Interim Manager Hopkins discussed details new
appropriations identified under CIP Funding Sources, specifically $50M Grant/Other, a dip in funding
projections for streets/transportation including gas tax funds, and the $107M figure identified for facilities
in Unfunded and Deferred Projects.
Mayor Peterson thanked the Public Works Department for the report, their successful recent Open
House, and their daily behind-the-scenes efforts.
A motion was made by Posey, second by Semeta, to recess to Closed Session for Items 3 – 7. With no
objections, the motion carried.
RECESSED TO CLOSED SESSION — 4:23 PM
CLOSED SESSION ANNOUNCEMENT(S)
2. 19-654 Mayor Peterson announced: Pursuant to Government Code § 54957.6, the City
Council shall recess into Closed Session to meet with its designated labor
negotiator: Lori Ann Farrell-Harrison, Interim City Manager; also in attendance:
Robert Handy, Police Chief; and Michele Warren, Director of Human Resources
regarding the following: Police Management Association (PMA).
CLOSED SESSION
3. 19-649 Pursuant to Government Code § 54956.9(d)(2), the City Council recessed into
Closed Session to confer with the City Attorney regarding potential litigation.
Number of cases, one (1).
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4. 19-650 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:
Benzen Properties, LLC, et al. v. City of Huntington Beach, et al.; OCSC Case No.
30-2019-01070544
5. 19-656 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:
Moore (Neal), et al. v. City of Huntington Beach, et al.; OCSC Case No.: 30-2019-
01071686.
6. 19-663 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:
Bedel (Richard) v. City of Huntington Beach; OCSC Case No.: 30-2017-00958740.
7. 19-651 Pursuant to Government Code § 54957.6, the City Council recessed into Closed
Session to meet with its designated labor negotiator: Lori Ann Farrell-Harrison,
Interim City Manager; also in attendance: Robert Handy, Police Chief; and Michele
Warren, Director of Human Resources regarding the following: Police Management
Association (PMA).
6:00 PM - COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING, AND CALLED TO
ORDER A SPECIAL MEETING OF THE HUNTINGTON BEACH HOUSING AUTHORITY — 6:00 PM
ROLL CALL
Present: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Posey
INVOCATION
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.
8. 19-638 Rev. Pattie Mercado of the Huntington Beach Center for Spiritual Living and
member of the Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY — None
Chief Assistant City Attorney Mike Vigliotta announced that City Attorney Michael Gates requested
permission to be absent to address a family matter.
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AWARDS AND PRESENTATIONS
9. 19-558 Mayor Peterson called on American Heart Association (AHA) Regional Director of
Quality & Systems Improvement, Jennifer Garrow, to present the "Mission: Lifeline
EMS Silver Plus Award" for excellence in cardiac care for heart attack victims.
Ms. Garrow congratulated the Huntington Beach Fire Department for receiving this award which
acknowledges their successful implementation of an American Heart Association initiative to improve
care for heart attack patients. Huntington Beach Fire Battalion Chief Jeff Lopez accepted the award on
behalf of the Fire Department and introduced Fire Captain Justin Fleming and Firefighter Paramedic
Tanner Hummel as representing members of the team that made this award possible.
10. 19-592 Mayor Peterson called on Debbie Killey who presented the winners of the 2019
Huntington Beach Environmental Board Art Contest for Middle and Senior High
School Students.
Ms. Killey announced the Environmental Board members who organized this event as Chair Mark
Sheldon, Vice Chair Tony Soriano, and herself. This event was sponsored by Republic Services, The
Surfrider Foundation, and City of Huntington Beach staff. Ocean Debris was the contest theme, and
over 150 submissions were received. The ten winners received a goody bag with approximately $200
worth of items. Ms. Killey invited everyone to the Environmental Board Reception at Central Park
Library, 6 p.m., Thursday, June 6, for the public unveiling.
11. 19-593 Mayor Peterson proclaimed Sunday, June 9, as "Huntington Peach Day" as
Miracles for Kids hopes to raise funds and awareness for the "Largest Gathering of
People Dressed as a Fruit or Vegetable" at the Huntington Beach Pier.
Details for this event are at www.huntingtonpeach.org
12. 19-617 Mayor Peterson acknowledged the Historic Wintersburg Preservation Task Force.
Mayor Peterson acknowledged the Task Force members and briefly described their activities during the
past seven years to preserve the history of the Wintersburg pioneers.
13. 19-664 Mayor Peterson called on Community Services Director Marie Knight to call on the
Children’s Needs Task Force Members, to present Certificates to Youth Character
Award recipients.
Dr. Phyllis Lembke, Chair, described the criteria used to identify Award recipients from the 150
community nominations. This year's 13 honorees will have their name placed on the Youth Character
Award Wall of Fame at Bella Terra to acknowledge their efforts to strengthen the moral fabric of the
community by demonstrating good character in their daily lives. Youth Character Award recipients
included Aurora Valencich, Erik Andrews, Fidel Hernandez, Jed Overton, John Marx, Kaitlyn Kurth, Kyle
Ledbetter, Lily Coler, Lucy Guard, Maitlyn Johnson, Matthew Taylor, Stella Grundstrom, and Vanessa
Yuro.
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14. 19-653 Special recognition was given to outgoing Huntington Beach Interim City
Manager/Assistant City Manager Lori Ann Farrell Harrison.
Mayor Peterson thanked Ms. Farrell Harrison for her tenure at the City of Huntington Beach and
presented her with a commendation, an award and a Certificate of Service.
Mr. Bruce Berman, Executive Director, Golden West College Foundation, presented Ms. Farrell Harrison
with a Certificate of Appreciation.
Mr. John Partington, expressed gratitude for Lori Ann’s service and a bit of sadness for the fact that she
is leaving the City, and wished her the best for her future.
Mr. Barry Kielsmeier, Beach Cities Interfaith Services (BCIS), thanked Ms. Farrell Harrison for her
support of their services for the homeless, and acknowledged her unflappable dignity, her ability to work
with many different personalities, her patience, and ability to educate and bring people together.
Ms. Shirley Dettloff thanked Ms. Farrell Harrison for her professionalism and compassion, especially as
related to the issues related to the homeless, and expressed appreciation for Ms. Farrell Harrison's
efforts to encourage cooperation in providing solutions.
Ms. Kathryn Levassiur thanked Ms. Farrell Harrison for her part in making the Short-Term Vacation
Rental Workshop a reality; her example of leadership, including inquisitiveness, eloquence, and depth of
knowledge; and wished her continued success in her new position.
Ms. Farrell Harrison expressed her appreciation to Mayor Peterson and the City Council for their
responsibility and courage in making the City financially sustainable; thanked the City's Executive Team
for their hard work and managing difficult situations; thanked City employees for their dedication; and
thanked the residents for engaging during her ten years at the City of Huntington Beach. She also
thanked her husband for his support for her career.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications received by her office following distribution of the Council Agenda packet:
Awards and Presentations
Item No. 12 (19-617) Email communication submitted by Mary Urashima regarding Historic Wintersburg
Preservation Taskforce Accomplishments.
Administrative Items
Item No. 30 (19-644)
1) Memorandum submitted by Lori Ann Farrell Harrison, Interim City Manager, dated May 31, 2019,
requesting to pull Agenda Item #30 (Ordinance No. 4182) from the June 3, 2019, City Council
Agenda, and
2) Three (3) email communications (Dardis, Quintana and Villar)
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PUBLIC COMMENTS (3 Minute Time Limit) — 22 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.
Anna Vrska, resident of Costa Mesa and Costa Mesa Finance and Pension Advisory Committee
Member, was called to speak and asked why Administrative Item No. 30, regarding amending Huntington
Beach Municipal Code related to the Finance Commission, was pulled and stated her opposition to this
item. (01:06:19)
Mary Spadoni, a resident of Costa Mesa, was called to speak and stated her opposition to Administrative
Item No. 30 regarding amending Huntington Beach Municipal Code related to the Finance Commission.
(01:08:28)
Dr. Joslin de Diego, a long-time resident, was called to speak and shared her concerns about the Ascon
Remediation project and asked the City Council to advocate for the health and safety of City residents.
(01:10:14)
Vanessa Martinez was called to speak and stated her opposition to Administrative Item No. 30 regarding
amending Huntington Beach Municipal Code related to the Finance Commission. (01:12:17)
William Hennerty was called to speak and stated opposition to Administrative Item No. 30 regarding
amending Huntington Beach Municipal Code related to the Finance Commission. (01:14:29)
Cari Swan was called to speak and stated her opposition to Administrative Item No. 30 regarding
amending Huntington Beach Municipal Code related to the Finance Commission. (01:15:08)
Ceason Baker, a resident of Huntington Beach, was called to speak and shared her concerns about the
Ascon Remediation project, and asked the City Council to advocate for the health and safety of City
residents. (01:18:11)
Tara Barton, resident of Huntington Beach and a biochemist expert in respiratory disease, was called to
speak and shared the negative health reaction of a family member which she believes is related to the
Ascon Remediation project, and asked the City Council to advocate for the health and safety of City
residents. (01:19:35)
Jami Boledovich was called to speak and shared her concerns about the Ascon Remediation project,
and asked the City Council to advocate for the health and safety of City residents. (01:22:51)
Amber was called to speak and shared her concerns about the Ascon Remediation project, and asked
the City Council to advocate for the health and safety of City residents. (01:26:09)
Sharon Messick was called to speak and shared her concerns about the Ascon Remediation project, and
asked the City Council to advocate for the health and safety of City residents. (01:29:25)
Ryan Messick was called to speak and shared concerns about the Ascon Remediation project, and
asked the City Council to advocate for the health and safety of City residents. (01:32:54)
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Scott Barger, a resident near the intersection of Slater and Graham, was called to speak and described
the street racing and burnouts happening in area residential neighborhoods which he believes are in
violation of a number of the City's vehicle codes and ordinances, and in his opinion the patrol officer
responses are not enough, nor are they effective. (01:36:07)
Debra Frahm, a 46-year resident and a homeowner in the south end of Huntington Beach, was called to
speak and shared concerns about the Ascon Remediation project, and asked the City Council to
advocate for the health and safety of City residents. (01:39:25)
Kathryn Levassiur, resident of Huntington Beach and Founding Member of the Huntington Beach Short-
Term Rental Alliance, was called to speak and stated support for Consent Calendar Item No. 16 (19-635)
regarding approval of the May 2019 City of Huntington Beach Strategic Plan Update, specifically the goal
to conduct a Study Session on the opportunities and challenges associated with short-term rentals.
(01:42:40)
Pye Ian was called to speak and shared concerns about the Ascon Remediation project, and asked the
City Council to advocate for the health and safety of City residents. (01:44:13)
Steve Engel was called to speak and stated his support for the 2019/20 budget and especially for the
funds allocated for maintenance and upkeep of the City's parks. (01:46:44)
Amory Hanson, a candidate for City Council in 2020 and Huntington Beach Historic Resources Board
member, was called to speak and stated his opposition to Administrative Item No. 30 (19-644) regarding
amending Huntington Beach Municipal Code Chapter 2.109 related to the Finance Commission.
(01:47:43)
Tony Bisson, resident of Huntington Beach, was called to speak and shared personal experiences
related to Consent Calendar Item No. 22 (19-589) regarding the LeBard Park Residential Subdivision on
Craimer Lane and his efforts to save a tree that in his opinion was unnecessarily scheduled to be taken
out. (01:49:26)
Bart P. McGrath, Co-Founder and President, Huntington Beach Concours d'Elegance, Inc., with his wife
Diana, was called to speak and stated support for Consent Calendar Item No. 21 (19-627) regarding
approval of the License Agreement for use of Central Library facilities for the Annual Concours Car
Show, and thanked the Public Works staff for their support to help provide a safe space, and
acknowledged several Councilmembers who attended the event. (01:52:43)
Ryan Farsai was called to speak and shared his opinions about world issues and conditions. (01:56:04)
Rich Fancher, 29-year resident of south Huntington Beach, Accredited Chemist, American Chemical
Society, and Diplomat of Robert Clark Honors College, University of Oregon, was called to speak and
shared personal experiences and concerns about the Ascon Remediation project, and asked the City
Council to advocate for the health and safety of City residents. (01:59:12)
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COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Semeta reported attending meetings of the Orange County Council of Governments
(OCCOG), the Southern California Association of Government (SCAG), and the Regional Housing
Needs Assessment (RHNA) Subcommittee.
Councilmember Brenden reported attending a special meeting of the Public Cable Television Authority
(PCTA), announced he has been appointed to the Orange County Senior Citizens Advisory Council as
the 2nd District Representative, and appointed to the Orange County Transportation Authority (OCTA)
Citizens Advisory Committee.
Councilmember Delgleize reported attending a Santa Ana River Flood Advisory Board meeting, and
meeting with members of the Huntington Beach Police Officers' Association (HBPOA).
Councilmember Posey reported meeting with members of the Huntington Beach Police Officers'
Association (HBPOA) and attending the Regional Housing Needs Assessment (RHNA) Subcommittee
meeting.
Councilmember Carr reported attending an Association of California Cities — Orange County (ACC-OC)
workshop on marijuana dispensaries, and communicated with members of the Huntington Beach Police
Officers' Association (HBPOA).
CITY MANAGER’S REPORT — None
CONSENT CALENDAR
Councilmember Posey pulled Consent Calendar Item Nos. 18 (19-660), 20 (19-564), and 23 (19-622) for
further discussion.
Councilmember Carr stated her "No" vote for Consent Calendar Item No. 25 (19-643) regarding adding
the classification of Assistant Chief Financial Officer.
Councilmember Hardy stated her "No" vote for Consent Calendar Item No. 25 (19-643) regarding adding
the classification of Assistant Chief Financial Officer.
15. 19-585 Approved and Adopted Minutes
A motion was made by Delgleize, second Posey to approve and adopt the City Council/Public Financing
Authority special meeting minutes dated April 18, 2019; and, approve and adopt the City Council/Public
Financing Authority regular meeting minutes dated May 6, 2019.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
16. 19-635 Approved the May 2019 City of Huntington Beach Strategic Plan Update
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A motion was made by Delgleize, second Posey to approve the May 2019 Strategic Objectives Update
as contained within Attachment 1.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
17. 19-578 Received and Filed Residential and Commercial Refuse Collection Rates Effective
July 1, 2019 and Appropriated $175,000 from FY18/19 Refuse Fund revenue for
FY18/19 Operating Expenditures
A motion was made by Delgleize, second Posey to receive and file the Residential and Commercial
Refuse Rates effective July 1, 2019; and, authorize an appropriation of $175,000 for operating costs for
Refuse Collection Contract Services.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
18. 19-660 Took Positions on Legislation Pending Before the State Legislature as
Recommended by the City Council Intergovernmental Relations Committee (IRC)
Councilmember Posey pulled this item to request that the recommended position regarding Assembly Bill
1356 (Ting) be removed because the bill was just ordered inactive by its author. Mayor Peterson agreed.
Councilmember Posey stated his "No" vote for the recommended position regarding Assembly Bill 1718
(Levine).
Mayor Pro Tem Semeta clarified that the recommended position regarding Assembly Bill 552 (Stone) will
be supported IF the State Legislature amends it.
A motion was made by Posey, second Peterson to approve a City position of Support if Amended on
Assembly Bill 552 (Stone): Coastal Adaptation, Access and Resilience Program; and, approve a City
position of Oppose on Assembly Bill 1184 (Garcia): Public Records: Writing Transmitted by Electronic
Mail: Retention; and, approve a City position of Oppose on Assembly Bill 516 (Chiu): Authority to
Remove Vehicles
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
A motion was made by Hardy, second Posey to approve a City position of Support on Assembly Bill 1718
(Levine): State Coastal Beaches Smoking Ban and Senate Bill 8 (Glazer): State Parks: State Coastal
Beaches: Smoking Ban.
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The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Delgleize, and Hardy
NOES: Posey
19. 19-619 Accepted the lowest responsive and responsible bid and authorized execution of a
construction contract with RT Contractor Inc. in the amount of $535,000 for the
Central Park Restrooms Project, CC1591
A motion was made by Delgleize, second Posey to accept the lowest responsive and responsible bid
submitted by RT Contractor, Inc. in the amount of $535,000; and, authorize the Mayor and City Clerk to
execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
20. 19-564 Awarded and authorized execution of a construction contract in the amount of
$490,050.00 to Aid Builders, Inc. for the Alley Rehabilitation Project, CC-1569
Councilmember Posey pulled this item to discuss details with City Engineer Tom Herbel who explained
there are 33 miles of alleys that are segmented into 519 distinct alleys, and this alley is at the top of the
list as being in the worst condition.
A motion was made by Posey, second Delgleize to accept the lowest responsive and responsible bid
submitted by Aid Builders, Inc., in the amount of $490,050.00; and, authorize the Mayor and City Clerk to
execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
21. 19-627 Approved and Authorized the Execution of a License Agreement between the City
of Huntington Beach and Concours D’Elegance Group for use of Central Library
facilities for the Annual Concours Car Show
A motion was made by Delgleize, second Posey to approve and authorize the Mayor and City Clerk to
execute the "First Restated and Amended License Agreement between the City of Huntington Beach and
Concours D'Elegance Group for use of Public Library Facilities for an annual Concours Car Show."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
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Housing Authority Special Meeting Minutes
June 3, 2019
Page 11 of 17
22. 19-589 Approved Final Tract Map No. 17801 and Subdivision Agreement for the LeBard
Park Residential Subdivision (Seabreeze Homes) by HB Homes Management, LLC
at 20461 Craimer Lane
A motion was made by Delgleize, second Posey to approve Final Tract Map No. 17801 and accept the
offer of easement dedications for street, public utility purposes and drainage purposes on Cynthia Drive
and Lightbreeze Circle pursuant to findings and requirements (Attachment No. 1); and, approve and
authorize the Mayor and City Clerk to execute the Subdivision Agreement by and between the City of
Huntington Beach and HB Homes Management, LLC (Attachment No. 6); and, accept Faithful
Performance Bond No. 379919S, Labor and Material Bond No. 379919S and Monument Bond No.
379922S as sureties for the installation of the subdivision's required public improvements and survey
monumentation (Attachment No. 7); and, authorize the Mayor and City Clerk to sign Final Tract Map No.
17801 on behalf of the City of Huntington Beach; and, instruct the City Clerk to file the respective bonds
with the City Treasurer and notify the Surety, Indemnity Insurance Company of this action.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
23. 19-622 Approved Affordable Housing Agreement for Tract No. 18147 Windbourne
Residential Development (Franklin School Site) located at 14422 Hammon Lane and
authorized City Manager to sign documents to effectuate the Agreement
Councilmember Posey pulled this item to confirm with Deputy Director of Economic Development Kellee
Fritzal that these homes will become part of the City's Regional Housing Needs Assessment (RHNA)
numbers.
A CITY COUNCIL/HOUSING AUTHORITY MOTION was made by Posey, second Delgleize to approve
and authorize the Mayor/Chairperson and City Clerk/Secretary to sign the Affordable Housing Agreement
for Tract No. 18147 Windbourne Residential Development; and, authorize the City Manager to sign any
and all related documents to effectuate the Agreement.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
NOES: None
24. 19-659 Approved and Authorized Execution of Agreement with Tripepi Smith for
Cablecasting Services
A motion was made by Delgleize, second Posey to approve and authorize the Mayor and City Clerk to
execute a two-year contract with Tripepi Smith for Cablecasting Services in an amount not to exceed
$150,000.
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy
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Page 12 of 17
NOES: None
25. 19-643 Adopted Ordinance No. 4181 amending Section 2.76.010 of the Huntington Beach
Municipal Code (HBMC) related to exclusions from competitive service by adding
the classification of Assistant Chief Financial Officer
Approved for Introduction May 20, 2019 - Vote: 4-2-1
(Carr, Hardy—No; Peterson—Absent)
A motion was made by Delgleize, second Posey to adopt Ordinance No. 4181, "An Ordinance of the City
of Huntington Beach Amending the Huntington Beach Municipal Code by Amending Section 2.76.010
Thereof Related to Exclusions from the Competitive Service" by adding the Assistant Chief Financial
Officer.
The motion carried by the following vote:
AYES: Brenden, Semeta, Peterson, Posey, and Delgleize
NOES: Carr, and Hardy
PUBLIC HEARING
26. 19-606 Public Hearing held; Adopted Resolution No. 2019-28 to Adopt a Budget for the City
for Fiscal Year 2019/2020
Interim City Manager Lori Ann Farrell Harrison introduced Budget Manager Carol Molina Espinosa who
presented a PowerPoint communication titled: Fiscal Year 2019/2020 Proposed Budget with slides
entitled: FY 2019/20 Proposed Budget Overview, Shaping the Future, FY 2019/20 Proposed Budget, FY
2019/20 General Fund Highlights, FY 2019/20 General Fund Overview, General Fund Revenue
Highlights, Strengthen Long Term Financial and Economic Sustainability, Being Proactive Pays Off,
Active Management of Long-Term Liabilities, Enhance and Maintain Infrastructure, CIP Budget
Highlights, FY 2019/20 Proposed Budget Recap, FY 2019/20 Proposed Budget.(02:17:22)
Councilmember Posey and Police Chief Handy discussed some details of the Police Management
Association (PMA) agreement regarding adding unfunded positions and attrition. (02:24:14)
Councilmember Delgleize and Budget Manager Molina-Espinoza discussed details on the Charter 15%
Infrastructure Fund requirement. (02:26:42)
Mayor Peterson opened the Public Hearing.
City Clerk Robin Estanislau announced there were no speakers, and receipt of the following
Supplemental Communication for the item:
A PowerPoint communication submitted by Gilbert Garcia, Chief Financial Officer (CFO), entitled Fiscal
Year 2019/20 Proposed Budget — Shaping the Future.
There being no speakers, Mayor Peterson closed the Public Hearing. (02:27:43)
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A motion was made by Hardy, second Delgleize to open the Public Hearing on the Proposed FY 2019/20
City budget appropriation of $381,229,021 as outline in the Proposed Budget document; adopt
Resolution Number 2019-28, "A Resolution of the City Council of the City of Huntington Beach Adopting
a Budget for the City for FY 2019/20" as shown on Attachment 2; approve the FY 2019/20 Proposed
Budget Table of Organization as shown on Attachment 2, Exhibit D; and, authorize the Professional
Services included in the FY 2019/20 budget to be representative of the services projected to be utilized
by departments in FY 2019/20, as shown in Attachment 3.
A substitute motion was made by Posey, second Brenden to open the Public Hearing on the Proposed
FY 2019/20 City budget appropriation of $381,229,021 as outline in the Proposed Budget document;
adopt Resolution Number 2019-28, "A Resolution of the City Council of the City of Huntington Beach
Adopting a Budget for the City for FY 2019/20" as shown on Attachment 2; approve the FY 2019/20
Proposed Budget Table of Organization as shown on Attachment 2, Exhibit D; and, authorize the
Professional Services included in the FY 2019/20 budget to be representative of the services projected to
be utilized by departments in FY 2019/20, as shown in Attachment 3, as amended to defund one
Lieutenant position.
Mayor Pro Tem Semeta expressed her surprise at Councilmember Posey’s substitute motion to defund
one Lieutenant Position.
Councilmember Delgleize recalled her understanding of past discussions on Police Department staffing.
Mayor Pro Tem Semeta asked Police Chief Handy to review the Police Department staffing history,
including the commitment to the Police Management Association (PMA) to make best efforts during the
budget process to refill the Lieutenant vacancy created when the new Assistant Chief position was filled.
Chief Handy further stated that it is important for the police officers to have adequate management
oversight, training and leadership, and as shown by the Finance Department in a recent discussion, the
Huntington Beach Police Department is understaffed at the management level when compared to other
like-sized municipalities.
Councilmember Posey explained that he cannot support the process used to reinstate the Lieutenant
position (before the budget process), therefore he is making the substitute motion to now remove the
Lieutenant position.
Councilmember Carr explained her opinion that adding to management positions at a time when all
departments were asked to reduce their budgets by one percent (1%), and not make any increases for
the rank and file, is her reason for supporting the substitute motion.
Mayor Peterson stated his opposition to the substitute motion, especially since during the entire process
to create and fill the Assistant Chief position it was made clear that rank and file positions cannot be
expanded until a Lieutenant position is refilled, and both rank and file and management are currently
understaffed.
Councilmember Hardy explained her opinion that when the current ceiling for police officers is met, then
it would be appropriate to propose another Lieutenant position with additional police officers.
The substitute motion by Posey, seconded by Brenden, carried by the following vote:
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AYES: Brenden, Carr, Posey, Delgleize, and Hardy
NOES: Semeta, and Peterson
27. 19-623 Conducted a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing
and adopted Resolution No. 2019-41 approving the financing of the construction of
improvements to the Pegasus School, located at 19692 Lexington Lane, with no
City obligations
Economic Development Deputy Director Kellee Fritzal presented a PowerPoint communication entitled
TEFRA Public Hearings - Pegasus School, Huntington Pointe Apartments, Hermosa Vista Apartments
with slides entitled: Tax and Equity Fiscal Responsibility Act (TEFRA), Projects, Public Hearing, and
Questions. She indicated that the presentation material would also include information related to TEFRA
Public Hearing item nos. 28 (Huntington Pointe Apartments), and 29 (Hermosa Vista Apartments).
(02:42:10)
Mayor Peterson opened the Public Hearing for Item 27. (19-623) regarding the construction of
improvements to the Pegasus School, with no City obligations.
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communication that was received by her office following distribution of the Council Agenda packet:
A PowerPoint communication submitted by Travis Hopkins, Interim Assistant City Manager, titled TEFRA
Public Hearings - Pegasus School, Huntington Pointe Apartments, Hermosa Vista Apartments with slides
entitled: Tax and Equity Fiscal Responsibility Act (TEFRA), Projects, Public Hearing, and Questions.
City Clerk Robin Estanislau announced there were no speakers.
With no one present to speak on the item, Mayor Peterson closed the Public Hearing. (02:44:38)
A motion was made by Posey, second Semeta to conduct the public hearing under the requirements of
TEFRA and the Internal Revenue Code of 1986, as amended (the "IRS Code"); and, adopt Resolution
No. 2019-41, "A Resolution of the City Council of the City of Huntington Beach approving the making of
the one or more loans by First Republic Bank to the California Municipal Finance Authority in a Principal
Amount not to Exceed $13,000,000, for the Purpose of Financing the Costs of Certain Improvements to a
School Commonly Known as the Pegasus School and Certain Other Matters relating thereto."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey and Hardy
NOES: None
OUT OF ROOM: Delgleize
28. 19-624 Conducted a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing
and adopted Resolution No. 2019-40 approving the issuance by the California
Statewide Communities Development Authority ("CSCDA") of Multifamily Housing
Revenue Bonds in an amount not to exceed $30,000,000 for Huntington Pointe
Apartments, located at 18992 Florida St., with no City obligations
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Mayor Peterson opened the Public Hearing for Item 28. (19-624) regarding Revenue Bonds for
Huntington Pointe Apartments, with no City obligations.
City Clerk Robin Estanislau announced there were no speakers.
With no one present to speak on the item, Mayor Peterson closed the Public Hearing.
A motion was made by Hardy, second Semeta to conduct a public hearing under the requirements of
TEFRA and the Internal Revenue Code of 1986, as amended ("IRS Code"), in consideration of the
issuance of tax-exempt bond financing by the California Statewide Communities Development Authority
for the benefit of Huntington Pointe 2019 LP, to provide re-financing for the acquisition, rehabilitation,
improvement, and equipping of an existing 104-unit multifamily rental housing project generally known as
Huntington Pointe Apartments, and; adopt Resolution No. 2019-40 "A Resolution of the City Council of
the City of Huntington Beach approving the issuance by the California Statewide Communities
Development Authority of Multifamily Housing Revenue Bonds for Huntington Pointe Apartments."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, and Hardy
NOES: None
ABSENT/OUT OF ROOM: Delgleize
29. 19-625 Conducted a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing
and adopted Resolution No. 2019-39 approving the issuance by the California
Statewide Communities Development Authority ("CDCDA") of Multifamily Housing
Revenue Bonds in an amount not to exceed $28,000,000 for Hermosa Vista
Apartments, located at 15363 & 15425 Goldenwest St., with no City obligations
Mayor Peterson opened the Public Hearing for Item 29. (19-625) regarding Hermosa Vista Apartments,
with no City obligations.
City Clerk Robin Estanislau announced there were no speakers.
With no one present to speak on the item, Mayor Peterson closed the Public Hearing. (02:46:21)
A motion was made by Hardy, second Posey to conduct a public hearing under the requirements of
TEFRA and the Internal Revenue Code of 1986, as amended ("IRS Code"), in consideration of the
issuance of tax-exempt bond financing by the California Statewide Communities Development Authority
for the benefit of Hermosa 2019 LP, to provide financing for the acquisition, rehabilitation, improvement,
and equipping of an 88-unit multifamily rental housing project generally known as Hermosa Vista
Apartments, and; adopt Resolution No. 2019-39 "A Resolution of the City Council of the City of
Huntington Beach Approving the Issuance by the California Statewide Communities Development
Authority of Multifamily Housing Revenue Bonds for Hermosa Vista Apartments."
The motion carried by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, and Hardy
NOES: None
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June 3, 2019
Page 16 of 17
OUT OF ROOM: Delgleize
ADMINISTRATIVE ITEMS
30. 19-644 ITEM WITHDRAWN FROM CONSIDERATION — Approve for Introduction Ordinance
No. 4182 Amending Huntington Beach Municipal Code Chapter 2.109 Related to the
Finance Commission
COUNCILMEMBER COMMENTS (Not Agendized)
Mayor Peterson reported attending the Public Works Department Open House and the Surf City 10
Sundown Media Launch/Press Event announcing their September race. He was the speaker for the
Golden West College Commencement Ceremony, attended Troop 567 Eagle Scout Court of Honor for
Lukas Westrup and Troop 892 Eagle Scout Court of Honor for Diego Cowa. He attended the Mayor's
Welcome and Emcee for Post 133 Memorial Day Ceremony at Pier Plaza, Miss HB Rose Dedication
Ceremony at City Hall, City Selection Committee meeting, and Coordinating Council meeting for the
swearing-in of New Board Members. At the conclusion of his comments, he left the meeting.
Councilmember Hardy thanked Mayor Peterson for how he led the Memorial Day Ceremony, and wished
all High School Seniors in the City good luck with their finals this week, and expressed congratulations
on their graduation next week.
Councilmember Brenden thanked outgoing Interim City Manager Lori Ann Farrell Harrison for her
leadership and wished her the best as City Manager for Costa Mesa, reported attending an Association
of California Cities - Orange County (ACC-OC) Update on Cannabis Policy and Legislation, and
Legislative and Regulatory Affairs Committee meetings, and a Patriotism Award was presented to
Gustafson Brothers Automotive by the American Veterans Organization for displaying the American Flag
at their business continuously since 9/11. He participated in the Troop 1 Boy Scout Eagle Court of Honor
for David “Trey” Richard Burr, III, Memorial Day Ceremony at Pier Plaza, visited Second Chance OC, a
business in Costa Mesa that assists homeless individuals with a criminal background, attended the Miss
HB Rose Dedication Ceremony, the Service Academy Nomination Information Night hosted by
Congressman Rouda, the HBPD Fallen Officer Front Desk Memorial Ceremony, a Homeless United
meeting, spoke at the Huntington Beach Coordinating Council regarding the Navigation Center, attended
the Aids Walk 2019 Orange County, and announced that June 30, Old World will host a free concert a 2
PM featuring the local band Forever Young.
Councilmember Carr thanked Councilmembers Brenden and Delgleize for participating in the Aids Walk
2019 Orange County, and the Public Works staff for setting up. Councilmember Carr reported attending
Huntington Beach Public Works Open House, Golden West College Commencement Ceremony, Surfin'
Sunday Celebrating the Life of Dick Dale, Memorial Day Ceremony, visiting three non-profits which serve
the homeless: Second Chance in Costa Mesa, Homeless United, and Off The Streets, attended the
HBPD Fallen Officer Front Desk Memorial Ceremony, touring Golden West College to see their new
offerings including their state-of-the-art Police Instruction building, and acknowledged Dwyer Middle
School for receiving $25,000 from ScholarShare for their STEM Program, attending Girls, Inc. Gala. She
thanked outgoing Interim City Manager Lori Ann Farrell Harrison for her leadership, and announced an
Ascon Public Workshop on Thursday, June 6, 6 PM at Edison High School.
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June 3, 2019
Page 17 of 17
Councilmember Posey commended outgoing Interim City Manager Lori Ann Farrell Harrison for her
training and leadership, which made him a more effective Councilmember as well as Vector Control
Liaison. Councilmember Posey reported attending Surfin' Sunday to celebrate the life of Dick Dale,
Memorial Day Ceremony, Duck-A-Thon events, and the Concours d'Elegance Salute to Pony Cars, all
"Z" cars, Datsun and Nissan, and BMW as well as saluting Honda 750 Four Motorcycles and BMW /2
Motorcycles.
Councilmember Delgleize reported attending the Miss HB Rose Dedication Ceremony, the HBPD Fallen
Officer Front Desk Memorial Ceremony, the Orange County Water Summit, and thanked outgoing
Interim City Manager Lori Ann Farrell Harrison for making her a better Councilmember.
Mayor Pro Tem Semeta expressed her appreciation to outgoing Interim City Manager Lori Ann Farrell
Harrison for her financial acumen and her ability to educate others, especially regarding unfunded
pension liabilities, in a diplomatic and graceful manner. Mayor Pro Tem Semeta reported attending the
Troop 1 Boy Scout Eagle Court of Honor for David “Trey” Richard Burr, III, Harbor Commission meeting,
Concours d'Elegance Salute, Surfin' Sunday Paddle-Out to celebrate the life of Dick Dale, and a judge
for the 5th and PCH Plein Air Painting event.
Mayor Pro Tem Semeta expressed condolences to the family of Dale Skerik, a community member very
involved in the Allied Arts Board, Coordinating Council, Past Grand Marshall of the Philharmonic Boat
Parade, Past President of the Huntington Harbour Cancer League, and Judge Advocate of the Harbour
Yacht Club.
ADJOURNMENT — at 8:45 PM in memory of Dale Skerik to the next regularly scheduled meeting of the
Huntington Beach City Council/Public Financing Authority is Monday, June 17, 2019, 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
_______________________________________
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
54
City of Huntington Beach
File #:19-646 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:David Kiff, Interim City Manager
PREPARED BY:Marie Knight, Director of Community Services
Subject:
Approve appointments and reappointments to the Huntington Beach Youth Board with terms
to expire May 31, 2020 as recommended by Councilmember liaisons Jill Hardy and Kim Carr
Statement of Issue:
At the conclusion of each school year, the one-year term for each of the Youth Board student
members concludes. There are nine total vacancies available on the board. Of the nine, five
members are graduating from high school thereby creating five vacancies and four current
representatives are seeking reappointment.
Financial Impact:
Not applicable.
Recommended Action:
A) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve the
appointment of the following students to a one-year term on the Huntington Beach Youth Board with
terms to expire May 31, 2020:
Jenna Ali - Huntington Beach High School, At-Large Member
Bella Brannon - Ocean View High School, At-Large Member
Andre Mai - Huntington Beach High School, At-Large Member
Kathryn Robinson - Marina High School, At-Large Member
Caitlin Sheetz - Edison High School, At-Large Member
B) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve the
reappointment of the following students to a one-year term on the Huntington Beach Youth Board
with terms to expire May 31, 2020:
Natalie Blazquez - Ocean View High School, Representative
Samuel Dater - Edison High School, Representative
Tatum Osborne - Marina High School, Representative
Amy Zang - Huntington High School, Representative
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File #:19-646 MEETING DATE:6/17/2019
Alternative Action(s):
Do not approve the recommendations; request further review by liaisons.
Analysis:
Each school year, the City seeks to fill the full roster of nine student representatives on the
Huntington Beach Youth Board. This year, five representatives are graduating from high school
thereby creating five vacancies and four current representatives are seeking reappointment to the
2019-20 Board term. Recruitments at each of the high schools resulted in several applications.
After interviewing potential candidates, Council Member liaisons Hardy and Carr selected the
following five new At-Large Members: Jenna Ali, Huntington Beach High School; Bella Brannon,
Ocean View High School; Andre Mai, Huntington Beach High School; Kathryn Robinson, Marina High
School; and Caitlin Sheetz, Edison High School.
Council Member liaisons Jill Hardy and Kim Carr are also recommending the reappointment of the
following students to an additional term: Natalie Blazquez, Ocean View High School Representative;
Samuel Dater, Edison High School Representative; Tatum Osborne, Marina High School
Representative; and Amy Zang, Huntington Beach High School Representative. All were
instrumental in fundraising and event coordination for the 2019 Youth in Government Day event.
This board meets on the second Monday of each month in the fifth floor conference room at 3:30
p.m. The Youth Board consists of nine members (four high school representatives and five high
school at-large representatives). All board members serve a one-year term, beginning June through
May of the following year.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Enhance and maintain high quality City services
Attachment(s):
1. Huntington Beach Youth Board 2019/20 Roster
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CITY OF HUNTINGTON BEACH YOUTH BOARD 2019-20 PENDING APPROVAL Term 6/1/2019 – 5/31/2020
Representatives:
Edison High School
Samuel Dater Pending Re-Appointment
Huntington Beach High School
Amy Zang, Pending Re-Appointment
Marina High School Representative
Tatum Osborne, Pending Re-Appointment
Ocean View High School Representative
Natalie Blazquez, Pending Re-Appointment
COUNCIL LIAISONS
Kim Car
Jill Hardy
CITY STAFF LIAISON
Chris Cole:
ccole@surfcity-hb.org
714-374-5312
Pending At-Large Members:
Edison High School At-Large Member
Caitlin Sheetz, Pending Appointment
Huntington Beach High School At-Large Member
Jenna Ali, Pending Appointment
Huntington Beach High School At-Large Member
Andre Mai, Pending Appointment
Marina High School
Kathryn Robinson, Pending Appointment
Ocean View High School
Bella Brannon, Pending Appointment
57
City of Huntington Beach
File #:19-628 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:David Kiff, Interim City Manager
PREPARED BY:Travis Hopkins, Interim Assistant City Manager
Subject:
Accept the Sewer Service Fund Performance Audit for Fiscal Year 2018-19
Statement of Issue:
The Sewer Service Fund Annual Performance Audit is presented to the City Council in conjunction
with the budget as required by Huntington Beach Municipal Code (HBMC) Section 14.54.070.
Financial Impact:
There are no fiscal impacts associated with accepting this report.
Recommended Action:
Accept the Sewer Service Fund Performance Audit for Fiscal Year 2018-19.
Alternative Action(s):
Do not accept the Sewer Service Fund Performance Audit and direct staff to make specific
modifications.
Analysis:
The Sewer Service Fund is designated solely for facilities and resources relating to the rehabilitation,
replacement, repair and maintenance of City-owned sanitary sewers and sewer lift-stations. This is
in accordance with California Health and Safety Code Section 5470, and is included as Chapter
14.54 in the HBMC. Section 14.54.070 - Annual Program Review of the HBMC requires an annual
review and performance audit of the Sewer Service Fund by the Public Works Commission. The
audit was presented and approved by the Commission at their May 15, 2019 meeting.
Per the aforementioned section of HBMC, “the City Council shall receive, at a regularly scheduled
meeting, the recommendations of the Public Works Commission concerning fees, rates and charges
proposed to be modified or added to the Sewer Service User Charge.” The public hearing addressing
the proposed changes to both the water and sewer charges was held on May 20, 2019. The City
Council adopted the water and sewer service charges at that time, with a recommended 8.8%
reduction to the sewer fee. The reasons for this reduction were:
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File #:19-628 MEETING DATE:6/17/2019
o For the past several years, the Sewer Service Fund (Fund 511) has operated at a surplus.
The reasons for this are:
§Requests pertaining to the Sewer Lateral Program have shown reduced activity for the
last several years.
§An increase in Sewer Development Impact Fund (Fund 210) revenues, due to recent
major development projects, has resulted in additional revenue that is being utilized to
partially fund sewer lift station replacement projects.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. Fiscal Year 2018-19 Sewer Service Fund Performance Audit
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May 2019 - 1 -
City of Huntington Beach
Public Works Department
Sewer Service Fund Performance Audit
Review of Fiscal Year 2018/19
Introduction
On September 4, 2001, the Huntington Beach City Council adopted a Sewer Service User
Charge and created the Sewer Service Fund. The Sewer Service Fund revenue is
designated solely for the rehabilitation, replacement, repair and maintenance of City-
owned sewers and lift stations. This is in accordance with the California Health and Safety
Code Section 5470, and is included in the ordinance that adds Chapter 14.54 to the
Huntington Beach Municipal Code. The ordinance established the Huntington Beach
Public Works Commission as both the oversight committee and the final appeals board.
The Sewer Service Fund shall be subject to an annual review and performance audit by
the Public Works Commission. The information presented in this report complies with
Section 14.54.070 Annual Program Review. In addition, the City Council shall receive, at
a regularly scheduled meeting, the recommendations of the Public Works Commission
concerning fees, rates and charges proposed to be modified or added to the sewer
service user charge. A public hearing on proposed charges will be held on May 20, 2019.
Program Overview
Scheduled maintenance projects and minor emergency repairs will be completed
within the allotted budget.
Closed Circuit Television (CCTV) Inspection and cleaning of sewer mains.
Operations and maintenance of the City’s 27 sewer lift stations.
Capital improvements including lift station design and construction work and the
sewer lining program.
A Sewer Lateral Program was added effective January 3, 2008, and the sewer
service charge was adjusted to cover the projected expenses. The program
transferred the responsibility to the City for sewer lateral repairs within the City-
owned right-of-way. Initially, the cost of the program exceeded the additional
revenue generated by the adjustment to the sewer service user charge. Costs
for this program have decreased significantly since its inception.
60
May 2019 - 2 -
The City Council adopted a reserve policy for enterprise funds in FY 14/15. The
reserve policy for the Sewer Service Funds states that the City will maintain a
reserve equal to the sum of the following:
o Operations and Maintenance: Thirty-three percent (33%) of the adopted
annual budget to ensure adequate working capital for operating expenses.
This amount is $2.6 million.
o Capital Improvement Program (CIP): One-hundred percent (100%) of the
average annual planned Capital Improvement Program for the following
five years. This amount is $3.2 million.
o Emergency: an amount equal to the estimated cost, as determined by the
City Engineer, to replace one sewer lift station. This amount is $3.5
million.
o The total reserve would amount to $9.3 million.
The Municipal Code states that the Consumer Price Index for Urban Consumers
(CPIU) in Los Angeles, Orange, Riverside Counties established by the Bureau of
Labor Statistics for the year over year for the month of November shall be used
to calculate adjustments to sewer service rates.
Review of Fiscal Year 2018/19
Personnel and operating expenditures account for approximately seventy percent (70%)
of the Fiscal Year 2018/19 Sewer Service Fund budget and are directed toward
preventative and routine maintenance. The budget includes salaries and benefits, sewer
line maintenance, CCTV pipeline and lateral inspection, lift station services, manhole
upgrades, the sewer lateral program and cost allocation charges to the City’s General
Fund. The balance of the expense budget is earmarked for capital equipment
replacement and capital projects, including slip lining, pipeline rehabilitation, and lift
station replacement. In general, the Sewer Maintenance Section of the Utilities Division
expends the operating and equipment replacement budgets, and the Engineering Division
is responsible for the implementation of capital projects.
Sewer Lift Stations: Edgewater Sewer Lift Station ($1.7 million in Sewer Development;
$2.3 million in Sewer Service Fund) is under construction. The bid for construction
contract for the Slater Sewer Lift Station ($2,500,000 in Sewer Development; $1 million
in Sewer Service Fund) was postponed until November 2019.
Design of the Saybrook Sewer Lift Station was started in FY 2018/19.
Sewer Lining: A construction contract ($503,000) for the FY 2018/19 Sewer Lining project
was awarded with construction to begin shortly after the end of FY 2018/19
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Maintenance Activities: Totals for various maintenance activities are presented below.
CCTV Inspection: The sewer system is inspected through the use of Closed Circuit
Television inspection. A contractor was employed to video inspect areas prior to
sewer sliplining. City crews video inspect the sewer mains located in residential
areas and low traffic volume streets.
Sewer Line Maintenance
Routine cleaning of 888,229 linear feet of sewer pipe.
Removal of 3,125 pounds of debris/grit during routine cleaning.
Cleaned 225 enhanced cleaning areas (areas of sewer line cleaned from two
times to twelve times per year) for a total of 322,870 linear feet through June.
The Fats, Oils and Grease (FOG) program has cleaned 7,400 linear feet of
sewer line around food service establishments and other areas with high grease
concentrations.
Sewer lateral repair program received and resolved 201 requests for repair to
date.
Inspected via Closed Circuit Television (CCTV) 86,071 linear feet of residential
sewer lines and arterial mains.
Manhole Maintenance
Cleaned and inspected 1,925 manholes.
Repaired and recoated 34 manholes.
Sprayed insecticide for roaches in 250 manholes.
Projected installation of 21 Smart covers at additional “hot spots.”
Sewer Lift Station Maintenance
Inspected 27 lift stations three times a week and cleaned each station every two
months.
Cleaned and inspected 336 check valves.
Cleaned 36 wet wells.
Replaced 3 check valves.
Replaced 1 gate valve.
Disassembled and rebuilt 10 sewer pumps.
Replaced 2 motors.
Replaced 1 impeller.
Replaced 9 sewer pumps.
Replaced 5 submersible-type sewer pumps.
Rebuilt 4 blower motors.
Upgraded 6 control panels.
Relocated 1 control panel above ground
Installed 5 Smart covers
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Sewer Lateral Program
Under the Sewer Lateral Program, the City assumed responsibility for the repair of all
sewer laterals from the City-owned sewer main through the public right-of-way to the
private property line. The property owner remains responsible for all costs of repair and
maintenance of that portion of the sewer lateral on private property. This program is
response driven as all work orders are generated in response to calls from residents and
businesses. Expenditures on the Sewer Lateral Program have decreased significantly
since the program was initiated in Fiscal Year 2008/09.
Staff had previously budgeted for the Sewer Lateral Program based on the expenditures
in the first two years of the program. However, following reductions in calls after the first
three fiscal years of the program, staff reduced the budget. As a response based
program, demand is unpredictable.
*FY 2017/18 was a nine-month fiscal year
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18* 2018/19
Sewer Lateral Expenditures
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Projected FY 2018/19 Expenditures
Personnel Original Budget Revised Budget* Projected
Salaries, Permanent $2,012,367 $2,012,367 $1,915,936
Salaries, Temporary $55,400 $55,400 $30,384
Salaries, Overtime $82,500 $82,500 $193,194
Benefits $1,335,488 $1,335,488 $1,335,488
Total Personnel $3,485,755 $3,485,755 $3,475,002
Operating
Utilities $110,000 $110,000 $130,000
Equipment and Supplies $348,350 $348,350 $128,838
Repairs and Maintenance $1,753,000 $1,950,973 $1,235,296
Conferences and Training $24,000 $37,000 $33,534
Professional Services $250,000 $361,733 $128,310
Rental Expense $3,500 $3,500 $100
Interdepartmental Charges $1,772,723 $1,772,723 $1,772,723
Expense Allowance $5,800 $5,800 $5,800
Total Operating $4,267,373 $4,590,079 $3,434,601
Capital
Vehicles $350,000 $350,000 $344,222
$350,000 $350,000 $344,222
CIP
Improvements $1,580,000 $5,916,881 $1,001,906
Total CIP $1,580,000 $5,916,881 $1,001,906
Total $14,342,715 $8,255,731 $9,683,128
*Revised budget is carry-over encumbrances from prior fiscal year.
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FY 2018/19 Projected Revenues
Source FY 17/18*FY 18/19
Actual Projected
Customer Charges $8,329,120 $11,781,389
Interest $2,593 $588,035
Other $32,466 $8,703
Total $8,364,179 $12,378,127
*Shortened fiscal year
Projected FY 2018/19 Fund Balance
Beginning Balance 07/1/2018 $22,198,503
Projected Revenues FY 18/19 $12,378,127
Projected Expenditures FY 18/19 ($8,255,731)
Projected End Balance 6/30/2019 $26,320,899
Proposed FY 2019/20 Budget
Sewer Service User Charge Adjustments
In accordance with Section 14.55.030 Annual CPIU Adjustments, each Sewer Service
User Charge shall be adjusted to reflect the annual percentage adjustment in Consumer
Price Index for all Urban Consumers (CPIU) in Los Angeles, Orange and Riverside
Counties established by the U.S. Bureau of Labor Statistics for the year over year change
in the month of November. The purpose for annual adjustment of the rates is to ensure
that the revenues continue to fully fund the needs of the program.
To accommodate the billing system, all service charge rates are calculated to four decimal
places, and charged on a daily factor. The daily factor converts the monthly charge based
on a 365-day year. This is a modification from the initially adopted rate schedule. The
customer’s bill reflects a charge based on the number of days between meter readings.
A resolution was adopted by the City Council to authorize the daily rate methodology.
Over the past five fiscal years, the City has received a significant increase in sewer
development revenues. These revenues are designated for the Sewer Development
Fund (Fund 210), and can only be spent on increasing sewer collection capacity.
Therefore, these funds have been used as part of the funding for the Edgewater and
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Slater sewer lift stations and are proposed to be used as part of the funding for the
upcoming Saybrook and New Britain projects. This has increased the Sewer
Maintenance Fund (Fund 511) reserves. As a result, staff has included a reduction in
sewer rates of $1.00 for single family residential customers – prorated for other account
types – in the Fiscal Year 2019/20 budget. Because this is a reduction in fees, no
Proposition 218 protest hearing is required.
The following table shows the impacts of the proposed rate adjustment
Effect of Rate Adjustment on Current Sewer Service Charge
Current Rate
Adjustment Customer Category Charge Type Unit Charge
Residential: Single-family
& townhouses with
individual meters
Flat rate for all
customers in category
per unit
per
month
$11.3541 $10.3538
Multi Family Residential:
All apartments, mobile
homes and townhouses
served by common meters
Flat rate for all
customers in category
per unit
per
month
$9.4183 $8.5885
Regular
Commercial/Industrial
Flat rate amount per
Equivalent Dwelling
Unit (EDU). EDU
refers to either (1) the
capacity of a
customer’s water
meter in comparison to
a standard ¾ inch
meter, or (2) the
number of tenant units
that receive water
service through the
water meter,
whichever is greater
per
EDU
per
month
$13.1770 $12.0161
Public Schools: All public
K-8 and high school districts
with schools in the City
Flat rate per student
per year with a
different rate per
student for K-8 and for
high schools
High
School
per
ADA
per year
$3.6264 $3.3069
ADA - Average Daily
Attendance
K-8
per
ADA
per year
$2.3352 $2.1295
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FY 2019/20 Proposed Budget
Personnel
Salaries, Permanent $2,012,668
Salaries, Temporary $56,550
Regular Overtime $82,500
Benefits $1,451,276
Total Personnel $3,602,994
Operating
Utilities $110,000
Supplies $350,350
Repairs and Maintenance $1,629,000
Conferences and Training $24,000
Professional Services $298,000
Rental Expense $3,500
Cost Allocation $1,832,548
Auto Allowance $5,800
Other Expenses $75,000
Total Operating $4,328,198
CIP (new)
Lift Station (Saybrook-construction) $1,500,000
Sewer Lining $1,000,000
Bridge Rehabilitation (sewer portion)$100,000
Residential Zone Maintenance $100,000
Vehicles $515,000
Total CIP $3,215,000
TOTAL
$11,053,192
FY 2019/20 Proposed Revenue
Customer Charges $10,389,698
Interest $180,000
Other $10,000
Total $10,579,698
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FY 2019/20 Projected Fund Balance
Projected Beginning Balance 7/1/2019 $26,320,899
Projected Revenues FY 19/20 $10,579,698
Proposed Expenditures FY 19/20 ($11,053,192)
Anticipated Carry-Over Expenses ($5,148,398)
Projected End Balance 6/30/2020 $20,699,007
FY 2019/20 Capital Projects
Lift Stations: A construction contract for the Saybrook Sewer Lift Station will be awarded,
with $3,800,000 budgeted for this project; $1,500,000 from Sewer Maintenance Fund and
$2,300,000 from Sewer Development Fund. Funds in the amount of $200,000 for the
design of the New Britain Sewer Lift Station are included in the budget request in the
Sewer Development Fund (210).
Sewer Lining: Sewer lining in the amount of $1,000,000 is programmed in FY2019/20. A
lining project is bid once a sufficient number of sewer defects are identified as part of the
CCTV inspection program.
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City of Huntington Beach
File #:19-431 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:David Kiff, Interim City Manager
PREPARED BY:Travis Hopkins, Interim Assistant City Manager
Subject:
Accept Bond Reductions for Shea Homes’ Parkside Estates Development Project
Statement of Issue:
Shea Homes Limited Partnership, A California Limited Partnership, has substantially completed the
construction of much of the required public improvements for the Parkside Estates Development
Project and is requesting a reduction of the project’s sureties through City Council acceptance of the
Coverage Riders.
Financial Impact:
No fiscal impact.
Recommended Action:
A) Authorize the Mayor to acknowledge and accept the Coverage Riders for the Faithful
Performance and Labor and Material Bond Nos. 0195156, 0195157, 0195158, 0195159, 0195160 ,
0195161, 0195162, and 0195163, and instruct the City Clerk to file the riders with the City Treasurer;
and,
B) Instruct the City Treasurer to notify the surety, Berkeley Insurance Company, of this action.
Alternative Action(s):
Deny the recommended action and provide direction to staff for the alternative action.
Analysis:
As part of the proposed subdivision and development of the Parkside Estates project (Attachment 1),
Shea Homes was allowed to record Final Tract Map No. 15377 prior to the completion of construction
of the required public improvements, by entering into a Subdivision Agreement and posting Faithful
Performance and Labor and Material Bonds as sureties to guarantee the construction of those
required public improvements (Attachment 2).
Shea Homes has now substantially completed the construction of approximately 95% of the required
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public improvements and is requesting reduction by approximately 90% of the original bond amount.
This action is not the City’s formal acceptance of these public improvements which will not occur until
after all the improvements have been constructed in substantial compliance with the approved plans
and specification and recommended for approval by the City Engineer. At a later date and if City
Council then accepts the City Engineer’s recommendations, the remaining 10% of the original
sureties will be released and a Guarantee & Warranty bond taken in to begin a 12 month warranty
period to assure acceptable long term performance of the public infrastructure.
Shea Homes is requesting the reduction of the project’s sureties (Attachment 3) through City Council
acceptance of the attached Coverage Riders (Attachment 4).
PROJECT DATA:
DEVELOPER: Shea Homes Limited Partnership, A California Limited Partnership, 2 Ada, Suite
200, CA 92618
ENGINEER: Hunsaker & Associates, Three Hughes, Irvine, CA 92618
SURETY: Berkley Insurance Company, 475 Steamboat Road, Floor 1, Greenwich, CT 06830
Environmental Status:
This action is a ministerial act, and is exempt from the requirements of the California Environmental
Quality Act, pursuant to State CEQA Guidelines, California Administrative Code, Title 14, Chapter 3,
Section 15268(b).
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. Parkside Estates Project Location Map
2. Original Faithful Performance and Labor and Materials Bond No. 0195156, 0195157,
0195158, 0195159, 0195160, 0195161, 0195162, and 0195163.
3. Letter from Shea Homes requesting the Bond Reduction Request with calculations
4. Coverage Riders for Faithful Performance and Labor and Materials Bond No. 0195156,
0195157, 0195158, 0195159, 0195160, 0195161, 0195162, and 0195163.
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City of Huntington Beach
File #:19-551 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Kellee Fritzal, Deputy Director of Economic Development
Subject:
Approve and authorize execution of Contract Amendment No. 2 with Rosenow, Spevacek
Group, Inc. (RSG) adding additional compensation of $30,000 and extending the term to
December 30, 2019 for Affordable Housing Compliance Monitoring of HOME Projects
Statement of Issue:
The Office of Business Development utilizes professional services annually to assist with site
inspection and monitoring services for the HOME Investment Partnership (HOME) Program. The
City Council’s approval consideration is requested for the extension of the Agreement for an
additional one (1) year term in an amount not-to-exceed $30,000 to complete inspections through
December 30, 2019.
Financial Impact:
Funds for this agreement are available in the Housing Residual Receipt and Low Moderate Income
Housing Asset account 35280301.69325 ($30,000).
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to Professional
Services Contract Between the City of Huntington Beach and Rosenow Spevacek Group, Inc., for
Affordable Housing Compliant Monitoring” to December 30, 2019 in the amount not-to-exceed
$30,000.
Alternative Action(s):
Do not approve the Amendment and direct staff accordingly.
Analysis:
The City of Huntington Beach receives HOME funds on an annual basis from the US Department of
Housing and Urban Development (HUD). These funds are utilized by the City to provide affordable
housing projects to benefit low-to-moderate income households. Affordable Housing projects include
new apartment development, and acquisition and rehabilitation of existing multi-family apartments.
Depending on the size of the apartment complex, site inspection and monitoring of the development
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are requited by HUD every one to three years. Of the City’s 48 affordable housing developments, 21
developments are funded with HOME funds. As a result, approximately 10 to 14 apartment
complexes are inspected annually to ensure compliance to HUD regulations and the City’s
Regulatory Agreement as required by City auditors.
The Office of Business Development utilizes professional services annually to assist with site
inspection and monitoring services for the HOME Investment Partnership (HOME) Program. The
initial three year agreement was entered between Rosenow, Spevacek Group, Inc. (RSG) and the
City on July 1, 2014 (Attachment 1). The agreement was amended to extend the agreement to June
2018 (Attachment 2). The request approve an extension of the Agreement for an additional one (1)
year in an amount not-to-exceed $30,000 allows for completion of current inspections as well as
sufficient time to issue a request for proposals to secure and adequately prepare the selected
consultant (Attachment 3). The City will pursue a Request for Proposals in the following fiscal year
for continued services.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Strengthen long-term financial and economic sustainability
Attachment(s):
1. Professional Services Contract (Agreement) between the City of Huntington Beach and
Rosenow, Spevacek Group, Inc. for Affordable Housing Compliance Monitoring
2. Amendment No. 1 to Professional Services Contract between the City of Huntington Beach
and Rosenow Spevacek Group, Inc, for Affordable Housing Compliance Monitoring
3. Amendment No. 2 to Professional Services Contract between the City of Huntington Beach
and Rosenow Spevacek Group, Inc, for Affordable Housing Compliance Monitoring
4. Certificate of Liability Insurance
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City of Huntington Beach
File #:19-636 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Travis Hopkins, Interim Assistant City Manager
Subject:
Approve and authorize execution of a License Agreement with Southern California Edison
(SCE) for Traffic Signal Equipment on Center Avenue at Bella Terra
Statement of Issue:
The five-year License Agreement with Southern California Edison (SCE) for the location, operation
and maintenance of traffic signal equipment at the northern driveway to Bella Terra on Center Avenue
expires June 30, 2019. SCE has prepared a new five-year license agreement for the City’s use of
this property
Financial Impact:
The total cost of the SCE license agreement is $342 over the five-year contract period. Funds are
annually budgeted in the Public Works Administration business unit (10085101).
Recommended Action:
A) Approve the “License Agreement” with Southern California Edison for use of the portion of their
property located at the eastern driveway of Bella Terra and Center Avenue for the location, operation
and maintenance of traffic signal equipment; and,
B) Authorize the Mayor and City Clerk to execute any and all documents to conclude this
transaction.
Alternative Action(s):
Do not approve the License Agreement and provide direction to staff to pursue other means of
locating, operating and maintaining traffic signal equipment for the intersection of Center Avenue and
the eastern Bella Terra driveway.
Analysis:
The City of Huntington Beach has maintained a license agreement with Southern California Edison
(SCE) to install, operate and maintain equipment for traffic signal purposes on their property that
parallels Center Avenue along the northern boundary of the Bella Terra Center. Bella Terra maintains
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a driveway opposite the driveway of One Pacific Plaza. The intersection of those driveways and
Center Avenue is controlled by a city-owned and operated traffic signal equipment. Due to the layout
and close proximity of the SCE property, it was necessary to include the equipment within the SCE
property. SCE does not grant easements on their property and instead enters into license
agreements for specified, limited and conditional use of their property. These agreements are
typically valid for five years.
The current License Agreement will expire on June 30, 2019. The City expects to continue to
maintain and operate the traffic signal serving Bella Terra and One Pacific Plaza at this location The
License Agreement provides the authority to do this.
Environmental Status:
Not applicable
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. Five-year License Agreement between Southern California Edison and the City of Huntington
Beach for traffic signal equipment located at Center Avenue and Bella Terra.
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City of Huntington Beach
File #:19-645 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Travis Hopkins, Interim Assistant City Manager
Subject:
Adopt Resolution No. 2019-29 concerning the status and update of the City’s Circulation
Element and Mitigation Fee Program for the Measure M2 Program
Statement of Issue:
To be eligible for Measure M2 funding, the City is required to adopt a resolution informing the Orange
County Transportation Authority (OCTA) that the City’s Circulation Element is in conformance with the
Master Plan of Arterial Highways (MPAH) and reaffirm concurrence with the City’s existing Mitigation
Fee Program.
Financial Impact:
No financial impact. The City will receive Measure M2 funds of approximately $3.5 million in Fiscal
Year 2019/20.
Recommended Action:
Adopt Resolution No. 2019-29, "A Resolution of the City Council of the City of Huntington Beach
Concerning the Status and Update of the Circulation Element and Mitigation Fee Program for the
Measure M (M2) Program."
Alternative Action(s):
Do not adopt a resolution and forego the eligibility for Measure M2 funding.
Analysis:
The City is required to adopt a resolution biennially, informing OCTA that the City’s Circulation
Element is in conformance with the MPAH and whether any changes to any arterial highways of the
Circulation Element have been adopted by the City. In addition, the City Council must reaffirm that
the City concurs with the existing mitigation fee program. The following are descriptions of the
resolution items:
Circulation Element/MPAH Consistency
A Circulation Element is one component of the City’s General Plan that depicts a planned multimodal
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network and related policies. The City’s Circulation Element defines the minimum planned lane
configurations for major roads and shall be consistent with the OCTA MPAH, which defines the
minimum planned lane configurations for major regionally significant roads in Orange County.
Mitigation Fee Program
The mitigation fee program is a locally established fee program, which assess fees used to mitigate
effects of new development on transportation infrastructure. Appropriate mitigation measures,
including payment of fees, construction of improvements, or any combination thereof, will be
determined through an established and documented process by the City. The City adopted
Resolution No. 2012-23 (attached) establishing new and revised mitigation fees.
Resolution No. 2019-29 allows the City to meet annual eligibility requirements to receive Measure M2
Net Revenues.
Public Works Commission Action: Not applicable
Environmental Status:
Not applicable
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. Resolution No. 2019-29
2. Huntington Beach Circulation Element
3. Resolution No. 2012-23
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City of Huntington Beach
File #:19-690 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Michele Warren, Director of Human Resources
Subject:
Adopt Resolution No. 2019-43 appointing Charles Adams as Interim Chief Financial Officer
and approving the Employment Agreement
Statement of Issue:
The City is in the process of conducting a nationwide recruitment to fill the Chief Financial Officer
vacancy created by the resignation of former Chief Financial Officer Gilbert Garcia on May 31, 2019.
It is recommended the City Council appoint Charles Adams as Interim Chief Financial Officer until the
recruitment process concludes.
Financial Impact:
No fiscal impact.
Recommended Action:
A) Adopt Resolution No. 2019-43, “A Resolution of the City Council of the City of Huntington Beach
Appointing Charles Adams as Interim Chief Financial Officer;” and,
B) Approve and authorize the City Manager to execute the “Employment Agreement Between the
City of Huntington Beach and Charles Adams.”
Alternative Action(s):
Do not Adopt Resolution No. 2019-43 and do not approve the Employment Agreement and direct
Staff to present an alternative solution.
Analysis:
Chief Financial Officer Gilbert Garcia resigned from City service on May 31, 2019. The City is in the
process of conducting a nationwide recruitment to fill the position. Carol Molina-Espinoza is currently
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serving as the Acting Chief Financial Officer. To maintain the integrity of City service with respect to
the City’s overall financial well-being, it is recommended that the City Council approve the
appointment of Charles Adams to serve as the Interim Chief Financial Officer until the City Council
concludes the ongoing national recruitment to fill the vacancy. The adoption of Resolution No. 2019-
43 and the execution of the employment agreement is required by CalPERS for employment of
retired annuitants at the Department Head/Executive level pursuant to Government Code Section
21221(h).
The Office of Human Resources has recently begun the process of launching a national recruitment
for the vacant Chief Financial Officer position. It is anticipated that the position will be filled by late
October or early November, 2019.
Mr. Adams has served as the Interim Finance Director for the City of Irvine and as the Acting
Managing Director for Finance and Administration for the Long Beach Harbor Department. Mr.
Adams has additional career public service as the Assistant Director for the County of Los Angeles
Department of Public Works, the City Controller for the City of Long Beach and the Chief Financial
Manager - Utilities Department for the City of Palo Alto. Mr. Adams obtained a Bachelor’s Degree in
Business Administration from Michigan State University and holds a Master’s Degree in Personnel
Management from Central Michigan University.
The hourly compensation for the position of Chief Financial Officer is $100.13 with no City-provided
benefits. The interim appointment of Mr. Adams is compliant with California Government Code
Section 21221(h).
Environmental Status:
N/A
Strategic Plan Goal:
Enhance and maintain high quality City services
Attachment(s):
1. Resolution No. 2019-43
2. Charles Adams Employment Agreement
3. Charles Adams Resume
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City of Huntington Beach
File #:19-691 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Michele Warren, Director of Human Resources
Subject:
Adopt Resolution No. 2019-44 appointing David Kiff as Interim City Manager and approving
the Employment Agreement
Statement of Issue:
The City is in the process of conducting a nationwide recruitment to fill the City Manager vacancy
created by former long-term City Manager Fred A. Wilson’s retirement on May 10, 2019. On June 7,
2019, former Interim City Manager Lori Ann Farrell-Harrison departed City service to become the City
Manager of Costa Mesa. On May 20, 2019, the City Council appointed David Kiff as Interim City
Manager until the nationwide recruitment process concludes.
Financial Impact:
No fiscal impact.
Recommended Action:
A) Adopt Resolution No. 2019-44, “A Resolution of the City Council of the City of Huntington Beach
Appointing David Kiff as Interim City Manager;” and,
B) Approve and authorize the Mayor to execute the “Employment Agreement Between the City of
Huntington Beach and David Kiff.”
Alternative Action(s):
Do not Adopt Resolution No. 2019-44 and do not approve the Employment Agreement and direct
Staff to present an alternative solution
Analysis:
City Manager Fred A. Wilson retired from City service on May 10, 2019. The City is in the process of
conducting a nationwide recruitment to fill the position. Lori Ann Farrell-Harrison served as the
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Acting/Interim City Manager through June 7, 2019, until her departure from Huntington Beach to
become the City Manager of the City of Costa Mesa. On May 20, 2019, the City Council approved
the appointment of David Kiff to serve as the Interim City Manager until the City Council concludes
the ongoing national recruitment to fill the vacancy. The adoption of Resolution No. 2019-44 and the
execution of the employment agreement is required by CalPERS for employment of retired
annuitants at the Department Head/Executive level pursuant to Government Code Section 21221(h).
In May, 2019, the Office of Human Resources commenced a national recruitment for the vacant City
Manager position. It is anticipated that the position will be filled by late August or early September
2019.
Council appointed David Kiff to fill the interim assignment until the recruitment is concluded
subsequent to the department of Ms. Farrell-Harrison. Mr. Kiff recently served as Interim Executive
Director of the Association of Cities and Counties-Orange County (ACC-OC). Mr. Kiff served as the
City Manager of the City of Newport beach for nine (9) years. Prior to his service to Newport Beach,
Mr. Kiff has held a variety of Executive-Level assignments including, Assistant to the City Manager in
the City of Organ, Executive Assistant to the Orange County Board of Supervisors, staff consultant to
the California State Senate, service as a California State Senate Fellow as well as service for the
California Governor’s Office of Community Relations.
Mr. Kiff holds a Master of Government Administration from the University of Pennsylvania and a
Bachelor of Science in Business Administration from California State University - Sacramento. Mr.
Kiff has served on a variety of affiliated professional boards and commissions including, Orange
County City Managers Association, Orange County Commission to End Homelessness, OC Housing
Finance Trust, League of Cities’ City Manager’s Task Force on Pension Reform, League of Cities’
Committee on Human Resources and Labor Relations.
The hourly compensation for the position of City Manager is $128.29 with no City-provided benefits.
The interim appointment of Mr. Kiff is compliant with California Government Code Section 21221(h).
Environmental Status:
N/A
Strategic Plan Goal:
Enhance and maintain high quality City services
Attachment(s):
1. Resolution No. 2019-44
2. David Kiff Employment Agreement
3. David Kiff Resume
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City of Huntington Beach
File #:19-661 MEETING DATE:6/17/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Dave Kiff, Interim City Manager
PREPARED BY:Carol Molina-Espinoza, Acting Chief Financial Officer (CFO)
Subject:
Public Hearing to consider adopting Resolution No. 2019-42 establishing the Gann
Appropriation Limit for Fiscal Year 2019/20
Statement of Issue:
Section 7910 of the State Government Code requires the City of Huntington Beach to adopt its
appropriations limit, pursuant to Article XIIIB of the State of California Constitution. The Government
Code requires adoption of the appropriation limit by June 30, 2019, for following Fiscal Year 2019/20.
Financial Impact:
None
Recommended Action:
Adopt Resolution No. 2019-42, “A Resolution of the City Council of the City of Huntington Beach
Establishing the Gann Appropriation Limit for Fiscal Year 2019/20” of $964,662,284.
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
In November 1979, the California voters approved Proposition 4, which created Article XIIIB of the
State Constitution, a state law that requires the state and local governments to adopt an annual
appropriation limit. This limit, also referred to as the “Gann Limit,” establishes a limit on the proceeds
of taxes that may be appropriated for spending in a given fiscal year. The limit allows the City’s
spending of tax proceeds to increase only by population growth and cost-of-living factors from the
base year of 1978-1979. In June 1990, Proposition 111 was passed which changed the way the limit
is calculated and is outlined as follows.
The City may increase its limit annually in two ways:
·By a percentage equal to the increase from the preceding year in county or city population
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(whichever is greater).
·By an amount equal to the change in per capita personal income in California or the change in
the assessment roll the preceding year due to the addition of local non-residential new
construction (whichever is greater).
The proposed appropriation limit for Fiscal Year 2019/20 is calculated as follows:
FY 2018/19 Appropriation Limit $ 921,344,622
Multiplied by percentage growth in State Per Capita Personal Income 1.0385
Multiplied by change in County Population 1.0082
Proposed FY 2019/20 Appropriation Limit $964,662,284
Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund. The
General Fund proposed appropriation for FY 2019/20 of $231.8 million is significantly below this
limit.
Examples of proceeds of taxes governed by the Gann Appropriation limit are: property taxes, sales
taxes, utility taxes, state subventions, fines, forfeitures, interest revenue on regulatory licenses, user
charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that
entity in providing the regulation, product or service.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Strengthen long-term financial and economic sustainability
Attachment(s):
1. Public Hearing Notice
2. Resolution Number 2019-42, “A Resolution of the City Council of the City of Huntington Beach
Establishing the Gann Appropriation Limit for Fiscal Year 2019/2020”
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EXHIBIT A
GANN LIMIT CALCULATION FISCAL YEAR 2019-2020
Under Proposition 111, there are two options available for each of the major adjustment factors. The values of these
factors for the purpose of calculating the Fiscal Year 2019-2020 adjustment are as follows:
Price Factor:
(A)Percent growth in State per Capita Personal Income:3.85%
(Source: Dept of Finance, California)
(B)Percent change in Assessed Valuation due to new non-residential construction:-1.52%
(Source: Orange County Assessor Prop 111 Report)
Population Factor:
(C) Percent growth in County Population:0.29%
(Source: Dept of Finance, California)
(D)Percent growth in City Population:0.82%
(Source: Dept of Finance, California)
Annual Adjustment Factor:
Based on the actual data, the four alternative adjustment factors are as follows:
(A x C)1.0385 x 1.0029 =1.04151165
(A x D)1.0385 x 1.0082 =1.0470157
(B x C)0.9848 x 1.0029 =0.98765592
(B x D)0.9848 x 1.0082 =0.99287536
Calculation of the Fiscal Year 2019-2020 Limit
FY 18/19 Limit $921,344,622
Recommended Adjustment Factor (Largest Allowable Increase)1.0470157
FY 19/20 Limit $964,662,284
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