Loading...
HomeMy WebLinkAbout2019-07-15 Agenda PacketMEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact the City Clerk’s Office at (714) 536-5227 for more information, or request assistance from the staff or Sergeant-at-Arms at the meeting. PUBLIC COMMENTS: To address the legislative body on items of interest not scheduled for public hearing, Request to Speak forms will be made available at the meeting and are collected by the staff or Sergeant at Arms. Some legislative bodies may provide different Request to Speak forms for public hearing items. AUDIO/VIDEO ACCESS TO BROADCASTED MEETINGS: City Council and Planning Commission meetings are televised live on HBTV-3 Channel 3, and can be viewed via live or archived website at https://huntingtonbeach.legistar.com. AGENDA CITY COUNCIL/PUBLIC FINANCING AUTHORITY Monday, July 15, 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 City Council/Public Financing Authority AGENDA July 15, 2019 4:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) STUDY SESSION 19-7821.Proposition 68 Competitive Projects 19-6302.Regional Housing Need Allocation Update RECESS TO CLOSED SESSION CLOSED SESSION 19-7743.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: City of Huntington Beach v. City of Fountain Valley, et al. (PCTA); OCSC Case No. 30-2019-01071652. 19-7754.Pursuant to Government Code § 54956.9(d)(2), the City Council shall recess into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, two (2). 19-7765.Pursuant to Government Code § 54954.5(e), the City Council shall recess into Closed Session to discuss the public employment of City Manager 19-7866.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: Tomasz Wysokinksi v. City of Huntington Beach; COHB-95-0139, ADJ4132089. 19-7877.Pursuant to Government Code § 54956.9(d)(1), the City Council shall Page 1 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Gabriel Ricci v. City of Huntington Beach; COHB-18-0081. 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy 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. 19-6418.Deacon Tom Concitis of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY AWARDS AND PRESENTATIONS 19-7299.Mayor Peterson to call on Victoria Alberty who will present the Adoptable Pet of the Month. 19-72410.Mayor Peterson to call on Community Services Director Marie Knight who will proclaim July as National Parks and Recreation Month. 19-72511.Mayor Peterson to call on Marine Safety Chief Mike Baumgartner and Junior Lifeguard Coordinator Mike Eich to recognize the Junior Guard Educational Exchange Team managers from Tiarua and Piha, New Zealand, who will make a presentation to the City of Huntington Beach. 19-72612.Mayor Peterson to present commendations to members who participated and completed the City’s 3rd Annual Citizens Academy. Page 2 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 19-72813.Mayor Peterson to call on Fire Chief David Segura who will present the Mayor’s Award to Administrative Assistant Lorene Ernst. 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 19-78314.Subjects addressed include July 4, 2019 recap by Chief Handy, and Ascon Landfill remediation update by Interim City Manager Kiff. CONSENT CALENDAR 19-72315.Approve and Adopt Minutes A)Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated June 17, 2019; and, B)Approve and adopt the City Council special meeting minutes dated June 29, 2019; and, C)Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated July 1, 2019. Recommended Action: 19-75016.Approve the June 2019 City of Huntington Beach Strategic Plan Update Approve the June 2019 Strategic Objectives Update as contained within Attachment 1. Recommended Action: 19-76917.City Council Position on Legislation Pending Before Congress and the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) A)Approve a City position of Support on S. 2012 “Restoring Local Control Over Public Infrastructure Act”; and, Recommended Action: Page 3 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 B)Approve a City position of Support on Assembly Bill 1779 (Daly) - Recovery Residences; and, C)Approve a City position of Support if Amended on Senate Bill 438 (Hertzberg) - Emergency Medical Services: Dispatch; and, D)Approve a City position of Support on Senate Bill 667 (Hueso) - Recycling Infrastructure; and, E)Approve a City position of Oppose on Senate Bill 330 (Skinner) - Housing Crisis Act of 2019; and, F)Adopt Resolution No. 2019-15, “A Resolution of the City Council of the City of Huntington Beach Supporting Maintaining Local Control of Energy Solutions.” 19-74718.Approve the Appointment of Jeffrey Dahl to the Design Review Board as recommended by Council Liaisons Mayor Erik Peterson, and Mayor Pro Tem Lyn Semeta Approve the appointment of Jeffrey Dahl to the Design Review Board for a term to expire on July 2023. Recommended Action: 19-76319.Approve the reappointment of Richard Moore and Faith Vogel for an additional term to the Library Board as recommended by Council Liaisons Kim Carr and Jill Hardy Approve reappointment of Richard Moore and Faith Vogel for an additional term to the Library Board effective July 1, 2019 through June 30, 2023. Recommended Action: 19-74220.Award and authorize execution of a construction contract with Corral Construction and Development, Inc. in the amount of $141,999 for the Central Library Restroom Access Compliance, MSC-528. A)Accept the lowest responsive and responsible bid submitted by Corral Construction and Development, Inc. in the amount of $141,999; and , B)Authorize project contingency expense not to exceed $28,400; and , C)Authorize the Mayor and City Clerk to execute a construction contract in a form Recommended Action: Page 4 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 approved by the City Attorney. 19-74521.Approve and authorize execution of Amendment #1 to the Professional Services Agreement with Enterprise Automation for On-Call Engineering Services for Water and Wastewater Supervisory Control and Data Acquisition (SCADA) system in the amount of $300,000 and extending the term one year Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and Enterprise Automation for On-Call Engineering Services for Water and Wastewater SCADA System .” Recommended Action: 19-76022.Approve and authorize execution of Amendment No. 2 to Professional Services Agreement with Go-Live Technology, Inc. in the amount of $60,000 for the Citywide Enterprise Land Management (ELM) implementation, and approve and authorize an increase in the Information Services Professional Service listing authority by $60,000 A)Approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Professional Services Agreement between the City of Huntington Beach and Go-Live Technology, Inc. for as needed Information Technology Project Management Services”; and, B)Approve and authorize an increase in the Information Services Professional Services listing authority by $60,000. Recommended Action: 19-76623.Approve a Ten-Year Lease Agreement with Kathy May’s Restaurant in Huntington Central Park located at 6622 Lakeview Drive A)Approve the “Lease Agreement between the City of Huntington Beach and Kathy May’s Restaurant, Inc.”, for the restaurant building located 6622 Lakeview Drive in Huntington Beach; and, B)Authorize the Mayor and City Clerk to execute the Lease Agreement on behalf of the City. Recommended Action: 19-73124.Adopt Resolution No. 2019-46 establishing Permit Parking District “Y” affecting residents on Marken Lane between Slater Avenue and Holland Drive Page 5 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 Adopt Resolution No. 2019-46, “A Resolution of the City Council of the City of Huntington Beach Establishing Permit Parking District “Y” Within the City of Huntington Beach .” Recommended Action: 19-75725.Adopt Resolution No. 2019-48 confirming reports of cost for weed abatement on private property within the City for the 2019 season A)Adopt Resolution No.2019-48, “A Resolution of the City Council of the City of Huntington Beach Confirming the Report of the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2019 Season”; and, B)Direct that all charges listed thereon be certified to the Orange County 2019/20 Property Tax Roll. Recommended Action: 19-75926.Adopt Resolution No. 2019-49 Approving the Certification of Special Assessments for Collecting Delinquent Civil Fines for Nuisance Violations of the Municipal Code Adopt Resolution No. 2019-49, "A Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments for Collecting Delinquent Civil Fines for Nuisance Violations of the Municipal Code." Recommended Action: 19-76127.Adopt Resolution No. 2019-47 Approving the Withdrawal of the City from the Public Cable Television Authority Adopt Resolution No. 2019-47, “A Resolution of the City Council of the City of Huntington Beach Approving the Withdrawal of the City from the Public Cable Television Authority.” Recommended Action: ORDINANCES FOR INTRODUCTION 19-76728.Approve for introduction Ordinance 4185 repealing Huntington Beach Municipal Code Section 2.101 relating to the dissolution of the Allied Arts Board (AAB) Approve for introduction Ordinance 4185, “An Ordinance of the City of Huntington Beach Repealing Huntington Beach Municipal Code Section 2.101 Allied Arts Board.” Recommended Action: COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT Page 6 of 7 City Council/Public Financing Authority AGENDA July 15, 2019 A Special Meeting of the City Council has been scheduled for 1:30 PM, Friday, July 26, 2019 at Huntington Central Library, 7111 Talbert Avenue, Huntington Beach, CA. The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, August 5, 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 Page 7 of 7 City of Huntington Beach File #:19-782 MEETING DATE:7/15/2019 Proposition 68 Competitive Projects City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-630 MEETING DATE:7/15/2019 Regional Housing Need Allocation Update City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-774 MEETING DATE:7/15/2019 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: City of Huntington Beach v. City of Fountain Valley, et al. (PCTA); OCSC Case No. 30-2019-01071652. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-775 MEETING DATE:7/15/2019 Pursuant to Government Code § 54956.9(d)(2), the City Council shall recess into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, two (2). City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-776 MEETING DATE:7/15/2019 Pursuant to Government Code § 54954.5(e), the City Council shall recess into Closed Session to discuss the public employment of Fire Chief. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-786 MEETING DATE:7/15/2019 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: Tomasz Wysokinksi v. City of Huntington Beach; COHB-95-0139, ADJ4132089. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-787 MEETING DATE:7/15/2019 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: Gabriel Ricci v. City of Huntington Beach; COHB-18-0081. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-641 MEETING DATE:7/15/2019 Deacon Tom Concitis of the Greater Huntington Beach Interfaith Council City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-729 MEETING DATE:7/15/2019 Mayor Peterson to call on Victoria Alberty who will present the Adoptable Pet of the Month. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-724 MEETING DATE:7/15/2019 Mayor Peterson to call on Community Services Director Marie Knight who will proclaim July as National Parks and Recreation Month. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-725 MEETING DATE:7/15/2019 Mayor Peterson to call on Marine Safety Chief Mike Baumgartner and Junior Lifeguard Coordinator Mike Eich to recognize the Junior Guard Educational Exchange Team managers from Tiarua and Piha, New Zealand, who will make a presentation to the City of Huntington Beach. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-726 MEETING DATE:7/15/2019 Mayor Peterson to present commendations to members who participated and completed the City’s 3rd Annual Citizens Academy. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-728 MEETING DATE:7/15/2019 Mayor Peterson to call on Fire Chief David Segura who will present the Mayor’s Award to Administrative Assistant Lorene Ernst. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-783 MEETING DATE:7/15/2019 Subjects addressed include July 4, 2019 recap by Chief Handy, and Ascon Landfill remediation update by Interim City Manager Kiff. City of Huntington Beach Printed on 7/10/2019Page 1 of 1 powered by Legistar™ City of Huntington Beach File #:19-723 MEETING DATE:7/15/2019 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 June 17, 2019, and July 1, 2019, and the City Council special meeting minutes of June 29, 2019, require review and approval. Financial Impact: None. Recommended Action: A)Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated June 17, 2019; and, B)Approve and adopt the City Council special meeting minutes dated June 29, 2019; and, C)Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated July 1, 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 City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-723 MEETING DATE:7/15/2019 Attachment(s): 1.June 17, 2019 CC/PFA regular meeting minutes 2.June 26, 2019 CC special meeting minutes 3.July 1, 2019 CC/PFA regular meeting minutes City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ Minutes City Council/Public Financing Authority City of Huntington Beach Monday, June 17, 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: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy Absent: Brenden Councilmember Brenden requested and was granted permission to be absent pursuant to Resolution No. 2001-54 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 (19-676), a PowerPoint communication was received from Travis Hopkins, Interim Assistant City Manager, entitled PCTA Exit and Transition Plan Update 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. Amory Hanson, City Council Candidate in 2020 and Historic Resources Board Member, was called to speak and stated his support for Study Session Item 1. (19-676) regarding exiting the Public Cable Television Authority (PCTA) as he believes this will provide an opportunity for more transparency. (00:00:54) STUDY SESSION 1. 19-676 Presented Information on Public Cable Television Authority (PCTA) Exit Plan Council/PFA Regular Minutes June 17, 2019 Page 2 of 10 Interim City Manager David Kiff introduced Assistant to the City Manager Antonia Graham who presented a PowerPoint communication entitled: PCTA Exit and Transition Plan Update with slides titled: Background (2), Business Plan for Operating "Surf City 3," Staffing, Programming, Cablecasting Services, Programming - Creative Content, What can PEG be spent on?, Proposed Budget, Branding and Public Notification, Current Trends in TV, Revenue/Partnership Opportunities, and Timeline. Councilmember Carr and Assistant to the City Manager Graham discussed last year's PEG funding of approximately $605K which was retained by PCTA, plus the PCTA administrative budget fee of $152K. Assistant Graham confirmed that the Communications Committee will approved future programming content, and that video streaming apps are expected to be in place this Fall. Mayor Pro Tem Semeta commended staff for their research on this change, and encouraged the public to submit their programming ideas for what they would like to see broadcast. Councilmember Posey and Assistant Graham discussed the effects of declining cable subscriptions that will reduce PEG funds, and how cable companies are investing in 5G technology for streaming. Councilmember Delgleize and Assistant Graham discussed how exiting the PCTA would provide the City with more control over PEG funds and franchise fees. Assistant Graham explained that installation of fiber is an eligible PEG fund expense, but clarified that use of PEG funding for installation of dark fiber to rent or lease out would not be eligible. Mayor Peterson encouraged the public to suggest programming ideas. RECESSED TO CLOSED SESSION — 4:20 PM A motion by Posey, second by Semeta to recess to Closed Session for Items 2 – 4. With no objections the motion passed. CLOSED SESSION 2. 19-702 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 3. 19-701 Pursuant to Government Code § 54954.5(e), the City Council recessed into Closed Session to discuss the public employment of City Manager 4. 19-704 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 6:00 PM - COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:00 PM ROLL CALL Council/PFA Regular Minutes June 17, 2019 Page 3 of 10 Present: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy Absent: Brenden Councilmember Brenden requested and was granted permission to be absent pursuant to Resolution No. 2001-54 PLEDGE OF ALLEGIANCE — Led by Mayor Pro Tem Semeta 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. 5. 19-639 Maha Ragab from the Muslim community and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS 6. 19-687 Mayor Peterson to call on Victoria Alberty to present the Adoptable Pet of the Month 7. 19-688 Mayor Peterson called on Community Services Director Marie Knight who presented the Mayor’s Award to Community Services Programs and Services Manager, Chris Slama Director Knight introduced Mr. Slama, and described his career path, contributions and accomplishments during his tenure with the City. She focused special attention on his service as Interim Community Services Director from October 2018 through April 2019, and his commitment to cover for another Division Manager who retired, all the while serving with grace, professionalism and enthusiasm while managing these two additional positions. Director Knight thanked Mr. Slama’s family for their support during this time, and provided a "bucket of fun" for daughters Kaitlyn and Casey to help with making up for lost time with their dad. Mr. Slama shared his pleasure at being able to work and raise his family in the City he grew up in. He thanked the Community Services team for their support in enhancing the quality of life in Huntington Beach, thanked Director Knight for her leadership, and Mayor Peterson for the recognition. 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. 8 (19-673), Inter-Department Memo from Robin Estanislau, City Clerk, submitting corrections to the City Council draft Minutes dated May 20, 2019. Council/PFA Regular Minutes June 17, 2019 Page 4 of 10 PUBLIC COMMENTS (3 Minute Time Limit) — 12 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. Claudia Perez, Senior Field Representative for Assemblywoman Cottie Petrie-Norris, was called to speak and announced that Assemblywoman Petrie-Norris has spoken to both the Department of Toxic Substances Control (DTSC) and the California Environmental Protection Agency regarding clean up at the Ascon site, and will be communicating with these agencies weekly to address residents’ concerns. (00:37:56) Amber was called to speak, and asked that the School Board and Edison Principal be notified of the potential health risks from the Ascon clean-up so that they may in turn inform the parents of students. (00:39:00) Sharon Messick, HB Landfill Awareness, was called to speak and shared her confusion and disappointment with what appears to her as the City Council’s lack of concern for the impact on residents regarding the Ascon landfill remediation project. (00:41:22) Nancy Buchoz was called to speak and expressed her concerns about the Tank Farm project, and asked that the Tank Farm Environmental Impact Report (EIR) be re-evaluated in light of the issues that have surfaced related to the Ascon landfill remediation project. (00:44:30) Kathryn Levassiur, a resident of Huntington Beach and Huntington Beach Short-Term Rental Alliance Founding Member, was called to speak and shared statistics to support her position that the City should be collecting Transient Occupancy Tax (TOT) revenues on short-term rentals operating within the City. (00:46:50) Ryan Messick was called to speak and expressed his concerns about the Ascon landfill project and the negative health effects experienced by family members. (00:49:01) Tara Barton was called to speak and expressed her concerns regarding the Ascon landfill project and the negative effects experienced by residents. (00:52:15) Mariya Skoblov-Sheldon was called to speak and expressed her concerns regarding the Ascon landfill project and the negative effects experienced by residents. (00:55:38) David Geddes, a resident of southeast Huntington Beach, was called to speak and shared his opinions regarding area housing developments, and encouraged everyone to clean up their own trash. (00:57:56) Tony Bisson was called to speak and expressed his concerns regarding the Ascon landfill project, and described his efforts to save a decades old neighborhood tree from being unnecessarily destroyed by the LeBard Park Residential Subdivision on Craimer Lane. (01:00:00) Ryan Reza Farsai was called to speak and shared his opinions on various issues. (01:03:00) Chrissy Gonzales was called to speak and expressed her concerns regarding the Ascon landfill project and described personal health issues that she believes are the result of living in close proximity to that land. (01:06:01) Council/PFA Regular Minutes June 17, 2019 Page 5 of 10 COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Mayor Pro Tem Semeta reported attending the Southern California Association of Government (SCAG) Community Economic and Human Development Policy Committee and Regional Council meetings where Regional Housing Needs Assessment (RHNA) numbers were discussed. Councilmember Posey reported attending the Southern California Association of Government (SCAG) Community Economic and Human Development Policy Committee meeting, chairing a meeting of the Orange County Parks Commission, attending a Building Industry Association (BIA) Urban Infill Seminar, and announced that the Southern California Association of Government (SCAG) Regional Housing Needs Assessment (RHNA) Subcommittee will meet on Monday, July 1. Councilmember Carr reported attending a Specific Events meeting to discuss the Surf City 10K Sundown Race which will be held on Saturday, September 21, starting at 6:30 p.m. Councilmember Delgleize reported that she and Councilmember Brenden met with the Director of the Long Beach Airport related to airport noise issues. CITY MANAGER’S REPORT Mayor Peterson introduced newly appointed Interim City Manager Dave Kiff. Manager Kiff expressed his appreciation for the support he has received from Council and members of the Executive Team, and acknowledged Travis Hopkins for serving as Interim Assistant City Manager, and Chuck Adams for serving as Interim Chief Financial Officer (CFO). Manager Kiff also acknowledged public speaker comments on the Ascon Project and stated that the City will be monitoring progress and providing details to the community. CONSENT CALENDAR 8. 19-673 Approved and Adopted Minutes A motion was made by Posey, second Delgleize to approve and adopt the City Council/Public Financing Authority regular meeting minutes dated May 20, 2019, as amended by supplemental communication; and, approve and adopt the City Council/Public Financing Authority regular meeting and the Housing Authority special meeting minutes dated June 3, 2019. The motion as amended carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 9. 19-646 Approved appointments and reappointments to the Huntington Beach Youth Board with terms to expire May 31, 2020 as recommended by Councilmember liaisons Hardy and Carr Council/PFA Regular Minutes June 17, 2019 Page 6 of 10 A motion was made by Posey, second Delgleize to, as recommended by City Council Member liaisons Hardy and 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 As recommended by City Council Member liaisons Hardy and 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 The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT Brenden 10. 19-628 Accepted the Sewer Service Fund Performance Audit for Fiscal Year 2018-19 A motion was made by Posey, second Delgleize to accept the Sewer Service Fund Performance Audit for Fiscal Year 2018-19. The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 11. 19-431 Accepted Bond Reductions for Shea Homes’ Parkside Estates Development Project A motion was made by Posey, second Delgleize to 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, instruct the City Treasurer to notify the surety, Berkeley Insurance Company, of this action. The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden Council/PFA Regular Minutes June 17, 2019 Page 7 of 10 12. 19-551 Approved and authorized 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 A motion was made by Posey, second Delgleize to 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. The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 13. 19-636 Approved and authorized execution of a License Agreement with Southern California Edison (SCE) for Traffic Signal Equipment on Center Avenue at Bella Terra A motion was made by Posey, second Delgleize to 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, authorize the Mayor and City Clerk to execute any and all documents to conclude this transaction. The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 14. 19-645 Adopted Resolution No. 2019-29 concerning the status and update of the City’s Circulation Element and Mitigation Fee Program for the Measure M2 Program A motion was made by Posey, second Delgleize to 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." The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 15. 19-690 Adopted Resolution No. 2019-43 appointing Charles Adams as Interim Chief Financial Officer and approving the Employment Agreement Council/PFA Regular Minutes June 17, 2019 Page 8 of 10 A motion was made by Posey, second Delgleize to 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, approve and authorize the City Manager to execute the "Employment Agreement Between the City of Huntington Beach and Charles Adams." The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden 16. 19-691 Adopted Resolution No. 2019-44 appointing David Kiff as Interim City Manager and approving the Employment Agreement A motion was made by Posey, second Delgleize to 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, approve and authorize the Mayor to execute the "Employment Agreement Between the City of Huntington Beach and David Kiff." The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden PUBLIC HEARING 17. 19-661 Public Hearing held -- Adopted Resolution No. 2019-42 establishing the Gann Appropriation Limit for Fiscal Year 2019/20 Interim City Manager David Kiff introduced this item. Mayor Peterson opened the Public Hearing. City Clerk Robin Estanislau announced that no one had signed up to speak, and supplemental communication was received, a PowerPoint communication submitted by Carol Molina-Espinosa, Interim Chief Financial Officer (CFO), entitled Gann Appropriate Limit 2019/2020. There being no public speakers, Mayor Peterson closed the Public Hearing. A motion was made by Delgleize, second Posey to 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. The motion carried by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, and Hardy NOES: None ABSENT: Brenden Council/PFA Regular Minutes June 17, 2019 Page 9 of 10 COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Carr reported attending the Opening Ceremony for the Third Annual Operation Surf, the Coastal Commission and City of Huntington Beach Open House Discussion on Sunset Beach Specific Plan Update, Huntington Beach Police Department Promotional Swearing-in Ceremony, Homeless Solutions monthly meeting, Public Workshop on the Ascon Landfill Site Project Milestones and Next Steps, making a Business Visit to Surf Cafea, attending the Huntington Beach Fire Academy Graduation Ceremony, Scholarship Awards Ceremony for recent graduates of Project Self Sufficiency, and announced a Homeless 101 presentation on July 20, 5:30 — 7:30 p.m. at St. Wilfrid Episcopal Church. Councilmember Delgleize reported attending the Third Annual Operation Surf, Ribbon Cutting and Grand Opening of a 7-Eleven Store on Edinger Avenue, Largest Gathering of People Dressed as a Fruit or Vegetable for Miracles for Kids!, Waymakers Huntington Beach Youth Shelter 13th Anniversary Open House and Reception, Huntington Beach Fire Academy Graduation Ceremony, and announced a Homeless 101 Presentation on July 20, 5:30 — 7:30 p.m. at St. Wilfrid Episcopal Church. Councilmember Posey reported attending Waymakers Huntington Beach Youth Shelter 13th Anniversary Open House and Reception, Huntington Beach Fire Academy Graduation Ceremony, and announced a Public Safety Summit hosted by Assemblyman Tyler Diep and Supervisor Michelle Steel and the City of Huntington Beach on Saturday, June 29, 10 am to 12 noon, at the Senior Center at Central Park. Mayor Pro Tem Semeta reported attending the Waymakers Huntington Beach Youth Shelter 13th Anniversary Open House and Reception, Business Roundtable for Downtown Property Owners, Association of California Cities — Orange County (ACC-OC) Local Government Finance Committee meeting, Communications Committee meeting, Huntington Beach High School Graduation Ceremony, providing City Remarks at the Huntington Beach Fire Academy Graduation Ceremony, attending a documentary by Matt Liffreing entitled Art of the Pier, and announced a Pension Obligation Seminar, which is open to the public, in Irvine at the Portola Springs Community Center, June 20 from 9 - 11 a.m. Councilmember Hardy reported attending the Public Workshop on the Ascon Landfill Project Milestones and Next Steps and thanked the public for speaking out on this issue, Waymakers Huntington Beach Youth Shelter 13th Anniversary Open House and Reception, and Councilmember Hardy acknowledged and congratulated the new Youth Board appointees. Councilmember Hardy also provided a brief report on the recent activities of the Huntington Beach City School District 7-11 Committee related to plans for elementary schools within the District. Mayor Peterson reported attending the Third Annual Operation Surf, Coastal Commission and City of Huntington Beach Open House Discussion on Sunset Beach Specific Plan Update, Public Workshop on the Ascon Landfill Site Project Milestones and Next Steps, speaking at the First Samoan Congregational Christian Church 50th Anniversary Celebration Service, attending the Adult School Graduation Ceremony, and Eagle Court for Nick Dumesnil, Luke Fowler and Kevin Lassig of Troop 492. ADJOURNMENT — 7:12 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, July 1, 2019, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. Council/PFA Regular Minutes June 17, 2019 Page 10 of 10 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   Minutes City Council Special Meeting City of Huntington Beach Saturday, June 29, 2019 8:00 AM – PASEA Hotel and Spa Emerald Cove Room 21080 Pacific Coast Highway Huntington Beach, California 92648 At 8:00 AM, a light Continental Breakfast was made available. 8:00 AM — PASEA Hotel and Spa, Emerald Cove Room SPECIAL MEETING CALLED TO ORDER — 8:00 AM ROLL CALL Present: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, and Hardy 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: For Closed Session Item No. 1 (19-732), an email communication received by Phil Burtis. PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEM(S) (3 Minute Time Limit) — None. RECESSED TO CLOSED SESSION At 8:02 AM, Council moved by acclamation to recess to Closed Session Item No. 1. CLOSED SESSION 1. 19-732 Pursuant to Government Code Section 54957(b)(1), the City Council recessed to Closed Session to discuss the following personnel matter: Public Employment - City Manager Interviews. Candidate interviews were conducted between 9:00 AM and 4:00 PM, with a lunch break at noon, and an anticipated adjournment time of 5:00 PM. RECONVENED AND ADJOURNED – 4:34 PM 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. Council Special Meeting Minutes  June 29, 2019  Page 2 of 2    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 ATTEST: ______________________________________ City Clerk ______________________________________ Mayor   Minutes City Council/Public Financing Authority City of Huntington Beach Monday, July 1, 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 Pursuant to Resolution No. 2001-54, Mayor Peterson requested and was granted permission to be absent. Present: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy Absent: Peterson 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 (19-678) 1) A PowerPoint communication was received from Robert Handy, Chief of Police, entitled Parking and Street Sweeping Enforcement; 2) MyHB communication received from Shelly Amsden, Huntington Beach resident regarding a Huntington Beach Police Department Parking Control Officer PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) — None STUDY SESSION 1. 19-678 Police Department Presentation on Parking and Street Sweeping Chief of Police Robert Handy and Police Lieutenant David Dereszynski presented a PowerPoint communication titled Parking and Street Sweeping Enforcement with slides entitled: HBPD Street Sweeping, Street Sweeping Contract Proposal, Street Sweeping Basics, Current and Proposed Staffing, Council/PFA Regular Minutes July 1, 2019 Page 2 of 12 Current Status/Efforts, Contractor Scope of Work, Outsourcing, Potential Pros and Cons, and Next Steps. Councilmember Posey and Chief Handy discussed some of the considerations necessary to implement smart parking apps, which is not a part of the plan under consideration. Councilmember Carr, Chief Handy and Lieutenant Dereszynski discussed options for clearly identifying contract parking enforcement staff, and some criteria to determine the success of the program. Councilmember Hardy, Chief Handy and Lieutenant Dereszynski discussed the importance of expecting the same high level of customer service and flexibility from a contractor that residents cu rrently experience with City staff. Councilmember Brenden and Chief Handy reviewed the current staffing process, and current estimates of projected annual savings. Councilmember Delgleize and Chief Handy discussed staffing possibilities. Mayor Pro Tem Semeta stated Council support for proceeding, and Chief Handy responded that there would be a more detailed follow-up report with a Request for Proposal (RFP) later in the summer. RECESSED TO CLOSED SESSION — 4:34 PM A motion by Brenden, second by Posey to recess to Closed Session for Items 3 – 14. With no objections the motion passed. CLOSED SESSION ANNOUNCEMENT(S) 2. 19-751 Mayor Pro Tem Semeta announced: Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet w ith its designated labor negotiator: David Kiff, Interim City Manager; also in attendance: Robert Handy, Police Chief; Chuck Adams, Interim Chief Financial Officer; and Michele Warren, Director of Human Resources regarding the following: Police Management Association (PMA). CLOSED SESSION 3. 19-700 Pursuant to Government Code § 54956.9(d)(2), the City Council recessed into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, two (2). 4. 19-733 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. 5. 19-734 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: Council/PFA Regular Minutes July 1, 2019 Page 3 of 12 City of Huntington Beach v. The Estate of Anne L. Hunt, Michael Melchiorre, et al.; OCSC Case No. 30-2019-01072448. 6. 19-735 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: City of Huntington Beach v. City of Fountain Valley, et al. (PCTA); OCSC Case No. 30-2019-01071652. 7. 19-736 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: Kennedy Commission, et al. v. City of Huntington Beach (Beach-Edinger Corridor); OCSC Case No 30-2015-00801675. 8. 19-737 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: Tabares (Tiffany) v. City of Huntington Beach and Eric Esparza; USDC Case No.: 8:18-cv-00821 JLS (JDEx). 9. 19-738 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: Duran (Anthony) v. City of Huntington Beach, et al.; USDC Case No.: 8:18-cv-00659 JVS (DFMx). 10. 19-739 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: Murnane (Richard) v. City of Huntington Beach, et al.; Workers’ Compensation Claim No. COHB 15-0268. 11. 19-740 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: Jackson (Ronald) v. City of Huntington Beach, et al.; Workers’ Compensation Claim No. COHB 18-0059. 12. 19-748 Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiator: David Kiff, Interim City Manager; also in attendance: Robert Handy, Police Chief; Chuck Adams, Interim Chief Financial Officer; and Michele Warren, Director of Human Resources regarding the following: Police Management Association (PMA). 13. 19-749 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: AKM Consulting Engineers, Inc. v. City of Huntington Beach; OCSC Case No.: 30- 2017-00902740. 14. 19-754 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: In Re: National Prescription Opiate Litigation; USDC - Ohio Case No. 1:17-md-02804- DAP. Council/PFA Regular Minutes July 1, 2019 Page 4 of 12 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:30 PM ROLL CALL Pursuant to Resolution No. 2001-54, Mayor Peterson requested and was granted permission to be absent. Present: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy Absent: Peterson PLEDGE OF ALLEGIANCE — Led by Councilmember Posey INVOCATION 15. 19-640 Mark Currie of the Greater Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS 16. 19-689 Mayor Pro Tem Semeta called on Retired Army General Larry Davis of Huntington Beach and President of the Aerospace Education Foundation of Huntington Beach for the presentation of three scholarships to young people who will begin their STEM careers this fall. Retired Army General Larry Davis presented a PowerPoint communication with pages entitled The Aerospace Education Foundation, Recent Steps to Develop Student Interest in Aerospace Careers, Lt. Gen. George Muellner Scholarships, Lt. Gen. George Muellner Scholarship - Michael Nally, Lt. Gen. George Muellner Scholarship - Louis Nguyen, and Lt. Gen. George Muellner Scholarship - Anh Stacy Phan. Each scholarship recipient was present to accept their scholarship award. 17. 19-721 Mayor Pro Tem Semeta called on Mr. Lloyd Glick, who was part of the American forces liberating Guam in World War II, and will be a guest of honor at the upcoming 75th Guam Liberation festivities. Councilmember Brenden introduced Mr. Glick who briefly described his time of service during WWII. AN NOUNCEMENT 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: Administrative Items Item No. 26 (19-744) Council/PFA Regular Minutes July 1, 2019 Page 5 of 12 1) Professional Services Contract between the City of Huntington Beach and Landrum & Brown for Aircraft Glide Slope Analysis; and 2) A PowerPoint communication received from Travis Hopkins, Interim Assistant City Manager, entitled Glide Slope Analysis. PUBLIC COMMENTS (3 Minute Time Limit) 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. Claudia Perez-Figueroa, 74th District Senior Field Representative for Assemblywoman Cottie Petrie- Norris, was called to speak and shared announcements relating to the State Budget recently passed by Governor Newsom, and closure of the Ascon cleanup site until all health and safety concerns have been addressed, and the Department of Toxic Substances Control (DTSC) determines it is safe to reopen. (02:01:53) Eric Richmond Massey, a resident of Huntington Beach, was called to speak and shared his opinion regarding personal experiences with various members of the communities he has lived in. (02:03:56) Trina Bilich was called to speak and stated her concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:07:07) Tom Bilich was called to speak and stated his disappointment that the Ascon remediation site situation is not on the Agenda, and asked that Council be more transparent with the community on this issue. (02:10:15) Sharon Messick was called to speak and stated her concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:12:00) Peter DeMeyer, a resident of Huntington Beach, was called to speak and stated his concerns regarding local commercial jet noise and air pollution issues due to the Federal Aviation Administration (FAA) Next Gen program. (02:15:23) David Porter, Huntington Beach Jet Noise Commissioner, was called to speak and stated his support for Administrative Items No. 26 (19-744) regarding the development of a Glide Slope Analysis. (02:17:37) Robyn Sladek, a 48-year resident of Huntington Beach, was called to speak and stated her concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:20:54) Mariya Sheldon was called to speak and stated her concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:23:02) Jami Marseilles, 26-year resident of Huntington Beach, was called to speak and stated her concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:25:48) Kathryn Levassiur, a resident of Huntington Beach, was called to speak and shared statistics to support her position that the City should be collecting Transient Occupancy Tax (TOT) revenues on short-term vacation rentals operating within the City. (02:29:45) Council/PFA Regular Minutes July 1, 2019 Page 6 of 12 Tim Geddes, a 30+ year resident of southwest Huntington Beach, was called to speak and stated his concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:31:54) Eva Weisz, a resident of Huntington Beach, was called to speak and stated her support for Administrative Items No. 26 (19-744) regarding the development of a Glide Slope Analysis. (02:33:56) Ann Palmer, a resident of Huntington Beach, was called to speak and shared resources that describe the health and noise issues related to living under jet paths and asked the City Council to take action to remediate the situation in Huntington Beach. (02:36:29) Ellen Jacobs, a resident of Huntington Beach, was called to speak and stated her support for Administrative Items No. 26 (19-744) regarding the development of a Glide Slope Analysis. (02:39:08) Andrea Pace, a 30+ year resident of Huntington Beach, was called to speak and shared her concerns about the noise and air pollution issues related to living under jet paths and asked the City Council to take action to remediate the situation in Huntington Beach. (02:39:47) Ryan R. Farsai, a Huntington Beach business owner, was called to speak and shared his opinions on various issues. (02:42:33) Rich Fancher, a 29-year resident of south Huntington Beach, was called to speak and stated his concerns regarding the noise and air pollution issues related to living under jet paths, and the Ascon remediation site and potential exposure to toxic elements. (02:45:40) Amber was called to speak and stated concerns regarding the Ascon remediation site and potential exposure to toxic elements. (02:48:58) COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Posey reported he was appointed as Chair of the newly formed Association of California Cities — Orange County (ACC—OC) Housing Ad Hoc Committee and read the mission statement for the Committee. At the end of this City Council meeting Councilmember Posey reported attending a meeting of the Vector Control Board and reminded everyone to eliminate any standing water as the best way to reduce the local mosquito population. Councilmember Delgleize reported attending an Orange County Transit Authority (OCTA) Highways and Planning meeting where details were discussed regarding the Angels Express, Kids Ride Free campaign, and Orange County Fair Express routes. Councilmember Carr reported attending the League of California Cities Conference to discuss municipal best practices, a Business of Local Energy symposium to discuss how local governments are addressing local energy needs, a meeting of the Allied Arts Board, and a meeting of the Oak View Task Force. CITY MANAGER’S REPORT In response to concerns shared by public speakers regarding the Ascon project, Manager Kiff explained that the City continues to monitor mitigation efforts by the Department of Toxic Substance Control Council/PFA Regular Minutes July 1, 2019 Page 7 of 12 (DTSC), and will update as needed information included on the City's Ascon project webpage located at https://huntingtonbeachca.gov/residents/ascon/. Manager Kiff discussed planned activities in celebration of the July 4th holiday including the 115th annual parade with fireworks and festival, the BASH event to be held at 5th and PCH on July 3rd from 6:00 to 9:00 PM, and pancake breakfast and 5-K walk/run on July 4th. Police Chief Handy displayed an informational slide that provided contact information for members of the public who wish to report illegal fireworks (non-emergency). Chief Handy reiterated that emergencies should absolutely be reported by calling 911, and identified alternative reporting methods for non- emergency situations during the holiday weekend, including Facebook and the MyHB app. CITY ATTORNEY’S REPORT 18. 19-716 City Attorney announced filing of the following lawsuit: City of Huntington Beach v. The Estate of Anne L. Hunt, Michael Melchiorre, et al.; Superior Court Case No.: 30- 2019-01072448-CU-OR-CJC; regarding the Property Address: 5892 Nugget Circle, Huntington Beach, California, 92647; for Nuisance Per Se and Receivership Action under Health & Safety Code § 17980.7 CONSENT CALENDAR Councilmember Posey pulled Consent Calendar Item No. 24 (19-703), regarding the Small Cell License Agreement, for further discussion. 19. 19-720 Received and filed City Clerk’s quarterly listing of professional services contracts filed in the City Clerk’s office between October 1, 2018 and March 31, 2019 A motion was made by Brenden, second Posey to receive and file the "List of Professional Services Contracts Approved by Department Heads and Submitted to the Office of the City Clerk During the Period of October 1, 2018 through December 31, 2018;" and, receive and file the "List of Professional Services Contracts Approved by Department Heads and Submitted to the Office of the City Clerk During the Period of January 1, 2019 through March 31, 2019." The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 20. 19-722 Adopted Resolution No. 2019-45 designating the Interim Assistant City Manager, the City Treasurer, the Finance Manager-Accounting Services, the Finance Manager-Budget, and the Finance Manager-Treasury as persons authorized to execute financial transactions in the name of the City of Huntington Beach A motion was made by Brenden, second Posey to adopt Resolution No. 2019-45, "A Resolution of the City Council of the City of Huntington Beach Authorizing the Manual and/or Facsimile Signatures of the Interim Assistant City Manager, the City Treasurer, the Finance Manager-Budget, the Finance Manager- Council/PFA Regular Minutes July 1, 2019 Page 8 of 12 Accounting Services, and the Finance Manager-Treasury as Persons Authorized to Execute Financial Transactions in the Name of the City of Huntington Beach." The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 21. 19-616 Approved Final Tract Map No. 18105 and Subdivision Agreement for the Holly Townhomes Residential Subdivision by Meritage Homes at 19200 Holly Lane A motion was made by Brenden, second Posey to approve Final Tract Map No. 18105 and accept the offer of easements 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 Meritage Homes for Tract No. 18105" (Attachment No. 6); and, accept Faithful Performance Bond No. SU1148545, Labor and Material Bond No. SU1148545 and Monument Bond No. SU1148546 as sureties for the installation of the subdivision's required public improvements and survey monumentation (Attachment No. 7); and, instruct the City Clerk to file the respective bonds with the City Treasurer and notify the Surety, Arch Insurance Company of this action. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 22. 19-618 Approved Final Tract Map No. 18106 and Subdivision Agreement for the Gothard Townhomes Subdivision by Meritage Homes at 19100 Gothard Street A motion was made by Brenden, second Posey to approve Final Tract Map No. 18106 and accept the offer of easements 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 Meritage Homes for Tract No. 18106"(Attachment No. 6); and, accept Faithful Performance Bond No. SU1148547, Labor and Material Bond No. SU1148547 and Monument Bond No. SU1148548 as sureties for the installation of the subdivision's required public improvements and survey monumentation (Attachment No. 7); and, instruct the City Clerk to file the respective bonds with the City Treasurer and notify the Surety, Arch Insurance Company of this action. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 23. 19-680 Adopted a 7-year Capital Improvement Program for the fiscal years 2019/2020 through 2025/2026 for compliance with renewed Measure M eligibility requirements Council/PFA Regular Minutes July 1, 2019 Page 9 of 12 A motion was made by Brenden, second Posey to adopt the 7-year Capital Improvement Program (FY 2019/2020 through 2025/2026) included as Attachment #1 for compliance with renewed Measure M eligibility requirements. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 24. 19-703 Approved and authorized the Second Amendment to the Small Cell License Agreement between the City and new Cingular Wireless PCS, LLC, dba, AT&T Mobility on City-owned street lights; and, authorized the City Manager to increase up to ten percent and substitute pole locations on an as-needed basis Councilmember Delgleize confirmed with Deputy Director of Economic Development Kellee Fritzal that there are three different agreements and they discussed how Huntington Beach rates compare to other area cities. Councilmember Posey explained that the Small Cell License Agreement (monetizing vertical real estate) would not be possible if the City had not purchased the light poles several years ago. A motion was made by Delgleize, second Posey to approve the "Second Amendment to the Small Cell License Agreement" between the City of Huntington Beach and new Cingular Wireless PCS, LLC, doing business as AT&T Mobility; and, approve and authorize the City Manager to execute the Second Amendment on behalf of the City; and, authorize City Manager to increase up to 10% and substitute pole locations on an as needed basis. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson 25. 19-705 Approved and authorized execution of a Caltrans Maintenance Agreement for Wayfinding Sign Installations on Pacific Coast Highway and Beach Boulevard A motion was made by Brenden, second Posey to approve and authorize the Mayor and Interim City Manager to execute the "Project Specific Maintenance Agreement for Wayfinding/Guide Signs in the City of Huntington Beach" with Caltrans for wayfinding sign installations on Pacific Coast Highway and Beach Boulevard. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson ADMINISTRATIVE ITEMS Council/PFA Regular Minutes July 1, 2019 Page 10 of 12 26. 19-744 Authorized the City Manager and the City Attorney to execute a Professional Services Agreement for Services related to the Development of a Glide Slope Analysis Interim City Manager David Kiff introduced Assistant to the City Manager, Antonia Graham who presented a PowerPoint communication entitled Glide Slope Analysis with slides titled: Background(2), What is a Glide Slope Analysis?, LGB Optimal Aircraft Altitude Heights, Scope of Work, and Questions? Councilmember Carr and a Landrum Brown staff member discussed that this will be a tangible report which Long Beach Airport can take to the FAA to request flight changes, and if the glide slope is implemented it should result in aircraft using less power, burning less fuel and creating less pollution, but the pollution issue is not a part of the glide slope study. Mayor Pro Tem Semeta and a Landrum Brown staff member discussed that Seattle has successfully worked with the FAA to maintain their glide slopes, but there are no reports of changed glide slopes within the U. S. Councilmember Hardy and a Landrum Brown staff member discussed that not many communities have prepared a professional glide slope analysis, and confirmed with Assistant to the City Manager Antonia Graham that studies like this are funded from the City Manager's Professional Services fund. Councilmember Brenden explained that it is virtually impossible to sue the Federal Aviation Administration (FAA), and with the research of the Jet Noise Working Group and subsequent Jet Noise Commission, Huntington Beach has elected to take a collaborative approach. Councilmember Brenden stated the FAA has indicated flights should be at or above the 1,600 foot parameter over Huntington Beach, and the glide slope analysis will provide data showing that flight paths over the area of Huntington Beach closest to Long Beach Airport should actually be at 2,200 feet with a three percent glide slope. Councilmember Brenden explained a couple of positive results if the FAA agrees with the report. Councilmember Delgleize concurred with Councilmember Brenden's statements, explained the lengthy process of fact gathering, and expressed appreciation for collaboration from all parties that have been involved. Councilmember Brenden asked Interim City Manager Kiff, former Newport Beach City Manager, to describe some of the costs that Newport Beach has paid to address the same issues, and Interim Manager Kiff expressed his opinion that the City of Huntington Beach approach is very positive and money well spent. Councilmember Posey asked why airlines don't use a glide slope voluntarily if it in fact saves fuel and decreases pollution. Councilmember Delgleize explained that to the best of her understanding, with a visual approach the pilots set one instrument and the process is pretty much automated, but when using the glide slope there are many more steps involved. Councilmember Brenden explained that most municipalities having the same issues are asking the FAA to solve the problem, whereas Huntington Beach is taking the stance of offering a technical proposal expecting that the FAA will be receptive as they stated they would be last year when he made a visit to them in Washington D.C. to discuss the issues. Council/PFA Regular Minutes July 1, 2019 Page 11 of 12 A motion was made by Brenden, second Delgleize to authorize the City Manager, with approval as to form by the City Attorney, to execute a Professional Services Agreement for services related to the development of a glide slope analysis. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson COUNCILMEMBER ITEMS 27. 19-756 Item Submitted by Councilmember Posey Approved — Request for Detailed Study Session on the City’s Unfunded Capital Project List Councilmember Posey introduced this item by briefly describing the budget review process and stated he supports Councilmember Carr’s suggestion to ask Public Works to provide an overview and prioritized list of the Unfunded Capital Projects including remaining life, and return with a Study Session to review details that will greatly assist the Council for upcoming budget cycles. Mayor Pro Tem Semeta stated her support for taking a deeper dive into the budget process. Councilmember Carr stated her support for more budget details. A motion was made by Posey, second Delgleize to direct the City Manager via the Public Works Director and City Engineer to conduct an in-depth Study Session within 90 days on the unfunded capital projects that have been identified by the Public Works Department. This Study Session should include a breakdown of the projects as identified through a comprehensive analysis by the Public Works Department through Master Plans and other planning documents (e.g. Sewer Master Plan, Water Master Plan, Facility Needs Assessment, etc.). This should include the Police Department's facility needs as well. The motion carried by the following vote: AYES: Brenden, Carr, Semeta, Posey, Delgleize, and Hardy NOES: None ABSENT: Peterson COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Posey invited the community to the July 4th festivities, and reported attending the Bolsa Chica Conservancy Barefoot Ball. Councilmember Carr thanked everyone who attended the Homeless 101 Community Meeting, reported attending the Bolsa Chica Conservancy Barefoot Ball, and the Oakmont Senior Living Community Grand Opening. Council/PFA Regular Minutes July 1, 2019 Page 12 of 12 Councilmember Brenden thanked the people who shared their concerns regarding the Ascon remediation project, and assured them that every Councilmember is concerned, listening to them and committed to finding a solution. Councilmember Brenden also expressed appreciation for the community support for the Glide Slope Analysis project, and thanked the Jet Noise Commission members and the members of the Jet Noise Working Group for their efforts in reaching this point. Mayor Pro Tem Semeta reported she was part of an Association of California Cities — Orange County (ACC—OC) panel on pension issues, and attended the Bolsa Chica Conservancy Barefoot Ball where she provided the commendation to the Long Beach Port Authority as the Conservator of the Year. Mayor Pro Tem Semeta also reminded anyone concerned about the Ascon remediation project to check out the City's Ascon project webpage located at https://huntingtonbeachca.gov/residents/ascon/ for the most up- to-date information. ADJOURNMENT — at 8:30 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Monday, July 15, 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 City of Huntington Beach File #:19-750 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Approve the June 2019 City of Huntington Beach Strategic Plan Update Statement of Issue: The City Council held a Strategic Planning Retreat on February 7, 2019, in which the City Council developed 20 Strategic Objectives based on four (4) Strategic Plan Goals. The Strategic Objectives were reviewed in a public meeting and through consensus by the City Council Members present, were compiled into a draft Strategic Objectives Grid. The Strategic Objectives were brought forth to City Council for approval on March 4, 2019. Financial Impact: Not applicable. Individual Strategic Objectives which have a budgetary impact will be considered separately. Recommended Action: Approve the June 2019 Strategic Objectives Update as contained within Attachment 1. Alternative Action(s): Amend or reject the Strategic Objectives Update and direct staff accordingly. Analysis: In 2009, the City Council began an annual strategic planning process to develop consensus on a Mission Statement, Three-Year Goals, and corresponding Priority Strategic Objectives. This process is ongoing and is a critical component of maintaining the City in a fiscally sustainable manner. In fulfilling this process, the City Council met on February 7, 2019, to review and update the Three-Year Goals and their Priority Strategic Objectives. The Three-Year Goals are organized into five categories as follows: -Enhance and Maintain High Quality City Services -Enhance and Maintain the Infrastructure -Strengthen Long-Term Financial and Economic Sustainability -Enhance and Modernize Public Safety Service Delivery City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-750 MEETING DATE:7/15/2019 Each of these categories includes a list of Six-Month Strategic Objectives. The Strategic Objectives contained in the matrix all gained consensus at the Strategic Planning Retreat. Additionally, the Strategic Objectives were brought forth to City Council on March 4, 2019, where they were approved in their entirety. The attached Strategic Objectives Matrix contains a status and comments column that are updated to reflect the most recent activity on each item that was identified at the Council Strategic Planning Session. The status is reported to Council monthly. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance and maintain high quality City services Enhance and maintain the infrastructure Strengthen long-term financial and economic sustainability Enhance and modernize public safety service delivery Attachment(s): 1.City of Huntington Beach Strategic Objectives -June 2019 Update City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ A CITY OF HUNTINGTON BEACH 12-MONTH STRATEGIC OBJECTIVES February 7, 2019 – February 1, 2020 May 2019 Update THREE-YEAR GOAL:Enhance and maintain high quality City services WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By May July August 15, 2019 Economic Development Deputy Director and Police Chief Present to the City Council for action an updated plan for addressing homelessness and report the results to the City Council.X Staff is currently updating the Plan to Address Homelessness, including community input for future City Council consideration and implementation. 2. By July 1, 2019 October 15, 2019 Economic Development Deputy Director working with the Chief Financial Officer Develop and present to the City Council for consideration participation in the Orange County Housing Trust. X The Orange County Housing Trust was adopted by the County of Orange in March 2019. Multiple cities have joined the trust. 3. By August 1, 2019 Oct. 1, 2019 Community Services Director (lead), City Manager and City Attorney Review current municipal codes related to community services and provide to the City Council recommendations that would allow the City to enhance public services. X Community Services & Police Department have met to identify specific codes in need of revisions. 4. By Oct. 1, 2019 Human Resources Director, with input from each Department Director Review and evaluate the results of the Succession Planning Survey and provide a summary report, with recommendations, to the City Council for review and evaluation. X Staff presented recommendations in the context of FY 2019-20 Proposed Budget discussion for certain components and departments. Additional recommendations are forthcoming. B 5. By August 1, 2019 Assistant to the City Manager working with the Assistant City Manager, Information Services Director, Chief Financial Officer and Public Information Officer Present to the City Council a plan for the transition out of PCTA (Public Cable Television Authority). X A transition team meets weekly and has developed a schedule of deliverables in order to meet the July 23, 2019, transition deadline. July 15, 2019 Exit Reso to Council. July 23 Go Live with HB Channel 3. 6. By August 15, 2019 By November 2019 Community Services Director Present to the City Council at a study session the draft Public Art Master Plan. X Working with CAO and CM’s office on finalized agreement with consultant services. Update will be provided by November 2019 7. By December 15, 2019 Community Development Director Bring Phase II of the Zoning Code update to the City Council for consideration. X C THREE-YEAR GOAL:Enhance and maintain the infrastructure WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By June 1, 2019 Public Works Director, working with the Community Services Director Utilizing the Parks Master Plan, prioritize next year’s proposed improvements and present to the City Council as a part of the 2019-2020 budget. X Proposed park improvements are included in the 2019-20 Proposed Budget. 2. By Sept. 1, 2019 Assistant City Manager (lead), Chief Information Officer and Public Works Director Develop and present to the City Council for action a Broadband Master Plan for the installation of fiber throughout the city. X A working group has been identified to develop recommendations to present to the City Council in September 2019. Interim Assistant City Manager will schedule a recurring meeting for the working group to build the plan. 3. By Aug. 1, 2019 Public Works Director, working with the Community Development Director and Police Chief Hold a study session on the feasibility of developing a citywide Traffic Mitigation Plan. X Staff is developing a scope of work for the study for City Council consideration. 4. By December 1, 2019 Chief Information Officer and Public Works Director Develop and present to the City Council for action a plan for the selection of an Enterprise Asset Management System.X Initial needs assessment completed. Project management budget for evaluation and RFP has been secured in 19/20 FY. 5. By February 1, 2020 Library Services Director (lead) and Public Works Director Conduct a City Council study session to share the results of the library facility assessment and present a draft Library Facilities Master Plan.X Draft RFP being developed. D THREE-YEAR GOAL:Strengthen long-term financial and economic sustainability WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By June August 20, 2019 Deputy Director of Economic Development Provide update to City Council on plan to redevelop Boeing site. X Met with Sares-Regis on the purchase of Phase II (50 acres). 2. By Sept. 1, 2019 Community Development Director and City Attorney Conduct a study session on opportunities and challenges associated with short-term rentals. X Staff is assembling information in order to provide a comprehensive cost benefit analysis by September 2019. 3. By July 1, 2019 City Manager, Assistant City Manager and Chief Financial Officer Recommend to the City Council for action the use of one-time money for long-term liabilities.X Recommendation for the use of one-time funds to expedite the pay-down of unfunded liabilities is included in the FY 2019-20 Proposed Budget. 4. By Oct. 1, 2019 Assistant City Manager (lead), Economic Development Director, Community Development Director, Police Chief, and Fire Chief. Conduct a City Council study session regarding the pros and cons of the cannabis economy, with the exception of dispensaries and cultivation, along with a cost-benefit analysis.X Staff preparing pros/cons analysis and cost benefit review. HdL is assisting in the process. E THREE-YEAR GOAL:Enhance and modernize public safety service delivery WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By April 15, 2019 By May 22, 2019 By August 19, 2019. Fire Chief and Chief Financial Officer Present to the City Council for consideration a revised EMS fee schedule that aligns with rates in Orange County and reflects best practices. X A study has been conducted regarding potential for new rates and methodology. Certain follow-up items are being reviewed to finalize recommendations. Going to Council on August 19, 2019. 2. By May 15, 2019 Public Works Director and Police Chief Recommend to the City Council for action the award of a contract for the design of the Police Headquarters Modernization Project.X Approved by the City Council on 3-18-19 3. By August 1, 2019 Police Chief and Chief Information Officer Bring to the City Council for action a proposal for replacement of the CAD/RMS system. X Project team members attended vendor demos in March and are conducting additional research and analysis. 4. By September 1, 2019 Assistant City Manager (lead), Police Chief and Chief Financial Officer Present funding options to the City Council to enhance funding for additional police staffing.X City of Huntington Beach File #:19-769 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: City Council Position on Legislation Pending Before Congress and the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) Statement of Issue: On June 26, 2019 the Intergovernmental Relations Committee (IRC) comprised of Mayor Erik Peterson and Council Member Jill Hardy met to discuss pending Federal and State legislation (Mayor Pro Tem Semeta was absent). Financial Impact: There is no fiscal impact. Recommended Action: A)Approve a City position of Support on S. 2012 “Restoring Local Control Over Public Infrastructure Act”; and, B)Approve a City position of Support on Assembly Bill 1779 (Daly) - Recovery Residences; and, C)Approve a City position of Support if Amended on Senate Bill 438 (Hertzberg) - Emergency Medical Services: Dispatch; and, D)Approve a City position of Support on Senate Bill 667 (Hueso) - Recycling Infrastructure; and, E)Approve a City position of Oppose on Senate Bill 330 (Skinner) - Housing Crisis Act of 2019; and, F)Adopt Resolution No. 2019-15, “A Resolution of the City Council of the City of Huntington Beach Supporting Maintaining Local Control of Energy Solutions.” Alternative Action(s): Do not approve and direct staff accordingly. City of Huntington Beach Printed on 7/10/2019Page 1 of 4 powered by Legistar™ File #:19-769 MEETING DATE:7/15/2019 Analysis: The Intergovernmental Relations Committee (IRC)met to discuss pending Federal and State legislation on June 26,2019 in addition to regional issues.The Committee reviewed the 2019 State Legislative Matrix provided by the City’s Federal and State Advocate Townsend Public Affairs.The following is an analysis of the bills that the Committee chose to take the following positions on: Ø SUPPORT - S. 2012 “Restoring Local Control Over Public Infrastructure Act” This would nullify recent actions by the Federal Communications Commission (FCC)that constrict local authority in pursuit of the expansion of wireless infrastructure.The regulations adopted by the FCC in August and September 2018 limit the authority of cities and states to regulate wireless technological attachments to public infrastructure,such as streetlight and utility poles.These regulations compel local governments to permit access to publicly owned infrastructure with set time limits as low as 60 days to conduct all necessary inspections and authorize proposals.Additionally,their limitation on fees and rates to direct and actual costs strips municipalities of their ability to analyze and identify the cost-benefit of this technology to its residents.The FCC’s actions prevent local environmental and design review,and drastically limit common-sense requirements to include our constituents in the approval process and allow us to protect our community. As you may know,two years ago,the State of California considered Senate Bill 649, legislation similar to the FCC’s actions.The bill received widespread opposition from local jurisdictions,and though the state legislature passed it,Governor Brown vetoed the bill.Since then,the bill has not been reintroduced.Local governments should be granted appropriate time and flexibility to ensure that small cell wireless infrastructure is deployed safely and correctly in our communities. Ø SUPPORT - Assembly Bill 1779 (Daly) - Recovery Residences Existing law provides for the licensure and regulation by the State Department of Health Care Services of adult alcoholism and drug abuse recovery and treatment facilities for adults.This bill would establish,and require the department to adopt and implement,minimum standards for counties seeking to use state funding to offer recovery residences.Additionally,the bill would require the National Alliance for Recovery Residences to deny an application for,or deny or revoke the recognition,registration,or certification of,a recovery residence under certain circumstances,including if the recovery residence fails to meet the minimum standards. Ø SUPPORT if Amended -Senate Bill 438 (Hertzberg)-Emergency Medical Services: Dispatch The bill would provide that medical control by a local EMS agency medical director or medical direction and management of an EMS system may not be construed to, among other things, limit the authority of a public safety agency to directly receive and administer “911” emergency requests originating within the agency’s territorial jurisdiction or authorize a local EMS agency to reduce a public safety agency’s response mode or deployment of emergency response resources within the agency’s territorial jurisdiction. The bill would also clarify that a public City of Huntington Beach Printed on 7/10/2019Page 2 of 4 powered by Legistar™ File #:19-769 MEETING DATE:7/15/2019 safety agency does not transfer its authority to administer emergency medical services to a local EMS agency by adhering to the policies, procedures, and protocols adopted by a local EMS agency. Ø SUPPORT - Senate Bill 667 (Hueso) - Recycling Infrastructure This bill would direct CalRecycle to develop a five year needs assessment to support innovation and technological infrastructure development in order to meet specific organic waste reduction and recycling targets.CalReycle would develop financial incentive mechanisms to fund and accelerate public and private capital towards organic waste diversion and recycling infrastructure.If signed into law,this bill could create more processing facilities nearby that could process organic material and possibly reduce operational costs for the City’s hauler who in turn passes their costs onto our ratepayers. Ø OPPOSE - Senate Bill 330 (Skinner) - Housing Crisis Act of 2019 The bill as recently amended would,among other things,declare a statewide housing crisis and for a five-year period,prohibit a city from imposing parking requirements near rail stops, and freeze nearly all project related fees once a developer submits a “preliminary”application. Furthermore,the bill created a new type of housing project application,this “preliminary” application,which upon submittal,limits the number of public hearings,freezes nearly all project related fees,and starts the approval timeline before an application is deemed complete.The City questions the effectiveness of prohibiting or limiting parking requirements and restricting essential housing related fees.SB 330 does not require any of the cost savings associated with these limitations to be passed on to the renter or purchaser of the housing unit.Developers would most likely pocket the savings and enhance their profits,while not producing affordable housing. In addition to the discussion of Federal and State legislation,a representative from the Southern California Gas Company presented the IRC members with information on balanced energy solutions. Recently a number of state agencies are increasingly proposing new legislation and regulations looking to eliminate energy choices and mandating solutions to fully electrify homes and businesses in the future.This is problematic for the City of Huntington Beach as our water distribution system which is natural gas fired would need to be switched to electric at a large cost to the taxpayers. These mandates eliminate local control and customer choice which suppresses innovation,reduces reliability,and unnecessarily increases costs for Huntington Beach residents,businesses,and our own operations. Environmental Status: Not Applicable Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1.S. 2012 “Restoring Local Control Over Public Infrastructure Act” 2.Assembly Bill 1779 (Daly) City of Huntington Beach Printed on 7/10/2019Page 3 of 4 powered by Legistar™ File #:19-769 MEETING DATE:7/15/2019 3.Senate Bill 438 (Hertzberg) 4.Senate Bill 667 (Hueso) 5.Senate Bill 330 (Skinner) 6.Resolution No. 2019-51, “A Resolution of the City of Huntington Beach Supporting Maintaining Local Control of Energy Solutions.” City of Huntington Beach Printed on 7/10/2019Page 4 of 4 powered by Legistar™ II 116TH CONGRESS 1ST SESSION S. 1699 To streamline siting processes for small cell deployment. IN THE SENATE OF THE UNITED STATES JUNE 3, 2019 Mr. THUNE (for himself and Mr. SCHATZ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To streamline siting processes for small cell deployment. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Streamlining The 4 Rapid Evolution And Modernization of Leading-edge In-5 frastructure Necessary to Enhance Small Cell Deployment 6 Act’’ or the ‘‘STREAMLINE Small Cell Deployment 7 Act’’. 8 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 2 •S 1699 IS SEC. 2. PRESERVATION OF LOCAL ZONING AUTHORITY. 1 Section 332(c) of the Communications Act of 1934 2 (47 U.S.C. 332(c)) is amended by striking paragraph (7) 3 and inserting the following: 4 ‘‘(7) PRESERVATION OF LOCAL ZONING AU-5 THORITY.— 6 ‘‘(A) GENERAL AUTHORITY.—Except as 7 provided in this paragraph, nothing in this Act 8 shall limit or affect the authority of a State or 9 local government or instrumentality thereof over 10 decisions regarding the placement, construction, 11 and modification of personal wireless service fa-12 cilities. 13 ‘‘(B) LIMITATIONS.— 14 ‘‘(i) IN GENERAL.—Except as pro-15 vided in subparagraph (C), the regulation 16 of the placement, construction, or modi-17 fication of a personal wireless service facil-18 ity by any State or local government or in-19 strumentality thereof— 20 ‘‘(I) shall not unreasonably dis-21 criminate among providers of func-22 tionally equivalent services; and 23 ‘‘(II) shall not prohibit or have 24 the effect of prohibiting the provision 25 of personal wireless service. 26 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 3 •S 1699 IS ‘‘(ii) TIMEFRAME.—A State or local 1 government or instrumentality thereof 2 shall act on any request for authorization 3 to place, construct, or modify a personal 4 wireless service facility within a reasonable 5 period of time after the request is duly 6 filed with the government or instrumen-7 tality, taking into account the nature and 8 scope of the request. 9 ‘‘(iii) WRITTEN DECISION AND 10 RECORD.—Any decision by a State or local 11 government or instrumentality thereof to 12 deny a request to place, construct, or mod-13 ify a personal wireless service facility shall 14 be— 15 ‘‘(I) in writing; and 16 ‘‘(II) supported by substantial 17 evidence contained in a written 18 record. 19 ‘‘(iv) ENVIRONMENTAL EFFECTS OF 20 RADIO FREQUENCY EMISSIONS.—No State 21 or local government or instrumentality 22 thereof may regulate the placement, con-23 struction, or modification of personal wire-24 less service facilities on the basis of the en-25 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 4 •S 1699 IS vironmental effects of radio frequency 1 emissions to the extent that the facilities 2 comply with the Commission’s regulations 3 concerning such emissions. 4 ‘‘(v) JUDICIAL AND ADMINISTRATIVE 5 REVIEW.— 6 ‘‘(I) JUDICIAL REVIEW.—Any 7 person adversely affected by any final 8 action or failure to act by a State or 9 local government or any instrumen-10 tality thereof that is inconsistent with 11 this subparagraph may, within 30 12 days after the action or failure to act, 13 commence an action in any court of 14 competent jurisdiction, which shall 15 hear and decide the action on an ex-16 pedited basis. 17 ‘‘(II) ADMINISTRATIVE RE-18 VIEW.—Any person adversely affected 19 by an act or failure to act by a State 20 or local government or any instrumen-21 tality thereof that is inconsistent with 22 clause (iv) may petition the Commis-23 sion for relief. 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 5 •S 1699 IS ‘‘(C) PLACEMENT, CONSTRUCTION, AND 1 MODIFICATION OF SMALL PERSONAL WIRELESS 2 SERVICE FACILITIES.— 3 ‘‘(i) IN GENERAL.—In addition to, 4 and not in derogation of any of, the limita-5 tions under subparagraph (B), the regula-6 tion of the placement, construction, or 7 modification of small personal wireless 8 service facilities by any State or local gov-9 ernment or instrumentality thereof— 10 ‘‘(I) shall not unreasonably dis-11 criminate among providers of the 12 same service using comparable equip-13 ment, including by providing exclusive 14 or preferential use of facilities to a 15 particular provider or class of pro-16 viders of personal wireless service; and 17 ‘‘(II) shall only permit a State or 18 local government to approve or deny a 19 permit or other permission to deploy a 20 small personal wireless service facility, 21 including access to a right-of-way or a 22 facility in a right-of-way owned or 23 managed by the State or local govern-24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 6 •S 1699 IS ment, based on publicly available cri-1 teria that are— 2 ‘‘(aa) reasonable; 3 ‘‘(bb) objective; and 4 ‘‘(cc) non-discriminatory. 5 ‘‘(ii) ENGINEERING STANDARDS; AES-6 THETIC REQUIREMENTS.—A State or local 7 government or instrumentality thereof may 8 regulate the placement, construction, and 9 modification of small personal wireless 10 service facilities for reasons of objective 11 and reasonable— 12 ‘‘(I) structural engineering stand-13 ards based on generally applicable 14 codes; 15 ‘‘(II) safety requirements; or 16 ‘‘(III) aesthetic or concealment 17 requirements. 18 ‘‘(iii) TIMEFRAMES.— 19 ‘‘(I) IN GENERAL.—A State or 20 local government or instrumentality 21 thereof shall act on a complete re-22 quest for authorization to place, con-23 struct, or modify a small personal 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 7 •S 1699 IS wireless service facility not later 1 than— 2 ‘‘(aa)(AA) for collocation of 3 a small personal wireless service 4 facility, 60 days after the date on 5 which the complete request is 6 filed, except as provided in item 7 (bb); or 8 ‘‘(BB) for any other action 9 relating to a small personal wire-10 less service facility, 90 days after 11 the date on which the complete 12 request is filed, except as pro-13 vided in item (cc); 14 ‘‘(bb) for collocation of a 15 small personal wireless service fa-16 cility, if the State or the area 17 under the jurisdiction of the local 18 government has a population of 19 fewer than 50,000 people— 20 ‘‘(AA) 90 days after the 21 date on which the complete 22 request is filed, if during the 23 30-day period ending on 24 that date of filing, the appli-25 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 8 •S 1699 IS cable wireless service pro-1 vider filed fewer than 50 re-2 quests for collocation of a 3 small personal wireless serv-4 ice facility with the State or 5 local government or instru-6 mentality thereof; or 7 ‘‘(BB) 120 days after 8 the date on which the com-9 plete request is filed, if dur-10 ing the 30-day period ending 11 on that date of filing, the 12 applicable wireless service 13 provider filed not fewer than 14 50 requests for collocation of 15 a small personal wireless 16 service facility with the 17 State or local government or 18 instrumentality thereof; or 19 ‘‘(cc) for any other action 20 relating to a small personal wire-21 less service facility, if the State 22 or the area under the jurisdiction 23 of the local government has a 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 9 •S 1699 IS population of fewer than 50,000 1 people— 2 ‘‘(AA) 120 days after 3 the date on which the com-4 plete request is filed, if dur-5 ing the 30-day period ending 6 on that date of filing, the 7 applicable wireless service 8 provider filed fewer than 50 9 requests for any other action 10 relating to a small personal 11 wireless service facility with 12 the State or local govern-13 ment or instrumentality 14 thereof; or 15 ‘‘(BB) 150 days after 16 the date on which the com-17 plete request is filed, if dur-18 ing the 30-day period ending 19 on that date of filing, the 20 applicable wireless service 21 provider filed not fewer than 22 50 requests for any other 23 action relating to a small 24 personal wireless service fa-25 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 10 •S 1699 IS cility with the State or local 1 government or instrumen-2 tality thereof. 3 ‘‘(II) APPLICABILITY.—The ap-4 plicable timeframe under subclause (I) 5 shall apply collectively to all pro-6 ceedings required by a State or local 7 government or instrumentality thereof 8 for the approval of the request. 9 ‘‘(III) NO TOLLING.—A time-10 frame under subclause (I) may not be 11 tolled by any moratorium, whether ex-12 press or de facto, imposed by a State 13 or local government on the consider-14 ation of any request for authorization 15 to place, construct, or modify a small 16 personal wireless service facility. 17 ‘‘(IV) TEMPORARY WAIVER.— 18 The Commission may temporarily 19 waive the applicability of subclause (I) 20 for not longer than a single 30-day 21 period for any complete request upon 22 a demonstration by a State or local 23 government that the waiver would be 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 11 •S 1699 IS consistent with the public interest, 1 convenience, and necessity. 2 ‘‘(iv) DEEMED GRANTED.—If a State 3 or local government or instrumentality 4 thereof has neither granted nor denied a 5 request within the applicable timeframe 6 under subclause (I) of clause (iii), includ-7 ing any temporary waiver granted under 8 subclause (IV) of that clause, the request 9 shall be deemed granted on the date that 10 is 31 days after the date on which the gov-11 ernment instrumentality receives a written 12 notice of the failure from the applicant. 13 ‘‘(v) FEES.—Notwithstanding any 14 other provision of law, a State or local gov-15 ernment may charge a fee to consider an 16 application for the placement, construction, 17 or modification of a small personal wireless 18 facility, or to use a right-of-way or a facil-19 ity in a right-of-way owned or managed by 20 the State or local government for the 21 placement, construction, or modification of 22 a small personal wireless facility, if the fee 23 is— 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 12 •S 1699 IS ‘‘(I) competitively neutral, tech-1 nology neutral, and nondiscrim-2 inatory; 3 ‘‘(II) publicly disclosed; and 4 ‘‘(III)(aa) except as provided in 5 item (bb), based on actual and direct 6 costs, such as costs for— 7 ‘‘(AA) review and processing 8 of applications; 9 ‘‘(BB) maintenance; 10 ‘‘(CC) emergency responses; 11 ‘‘(DD) repairs and replace-12 ment of components and mate-13 rials resulting from and affected 14 by the installation of small per-15 sonal wireless facilities, improve-16 ments, and equipment that facili-17 tates the deployment and instal-18 lation of such facilities; or 19 ‘‘(EE) inspections; or 20 ‘‘(bb) calculated in accordance 21 with section 224, in the case of a fee 22 charged for the placement, construc-23 tion, or modification of a small per-24 sonal wireless facility on a pole, in a 25 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 13 •S 1699 IS right-of-way, or on any other facility 1 that may be established under that 2 section. 3 ‘‘(vi) RULE OF CONSTRUCTION.— 4 Nothing in this subparagraph shall be con-5 strued to prevent any State or local gov-6 ernment from imposing any additional lim-7 itation or requirement relating to consider-8 ation by the State or local government of 9 an application for the placement, construc-10 tion, or modification of a small personal 11 wireless service facility. 12 ‘‘(D) DEFINITIONS.—For purposes of this 13 paragraph— 14 ‘‘(i) the term ‘antenna’ means an ap-15 paratus designed for the purpose of emit-16 ting radiofrequency radiation, to be oper-17 ated or operating from a fixed location for 18 the transmission of writing, signs, signals, 19 data, images, pictures, and sounds of all 20 kinds; 21 ‘‘(ii) the term ‘communications net-22 work’ means a network used to provide a 23 communications service; 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 14 •S 1699 IS ‘‘(iii) the term ‘communications serv-1 ice’ means— 2 ‘‘(I) cable service, as defined in 3 section 602; 4 ‘‘(II) information service; 5 ‘‘(III) telecommunications serv-6 ice; or 7 ‘‘(IV) personal wireless service; 8 ‘‘(iv) the term ‘complete request’ 9 means a request for which the applicant 10 has not received written notice from the 11 State or local government within 10 busi-12 ness days of submission— 13 ‘‘(I) stating in writing that the 14 request is incomplete; and 15 ‘‘(II) identifying the information 16 causing the request to be incomplete; 17 ‘‘(v) the term ‘generally applicable 18 code’ includes a uniform building, fire, 19 electrical, plumbing, or mechanical code 20 adopted by a national code organization, or 21 a local amendment to such a code, to the 22 extent not inconsistent with this Act; 23 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 15 •S 1699 IS ‘‘(vi) the term ‘network interface de-1 vice’ means a telecommunications demarca-2 tion device and cross-connect point that— 3 ‘‘(I) is adjacent or proximate 4 to— 5 ‘‘(aa) a small personal wire-6 less service facility; or 7 ‘‘(bb) a structure supporting 8 a small personal wireless service 9 facility; and 10 ‘‘(II) demarcates the boundary 11 with any wireline backhaul facility; 12 ‘‘(vii) the term ‘personal wireless serv-13 ice’ means— 14 ‘‘(I) commercial mobile service; 15 ‘‘(II) commercial mobile data 16 service (as that term is defined in sec-17 tion 6001 of the Middle Class Tax Re-18 lief and Job Creation Act of 2012 (47 19 U.S.C. 1401)); 20 ‘‘(III) unlicensed wireless service; 21 and 22 ‘‘(IV) common carrier wireless 23 exchange access service; 24 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 16 •S 1699 IS ‘‘(viii) the term ‘personal wireless 1 service facility’ means a facility for the 2 provision of personal wireless service; 3 ‘‘(ix) the term ‘small personal wireless 4 service facility’— 5 ‘‘(I) means a personal wireless 6 service facility in which each antenna 7 is not more than 3 cubic feet in vol-8 ume; and 9 ‘‘(II) does not include a wireline 10 backhaul facility; 11 ‘‘(x) the term ‘unlicensed wireless 12 service’— 13 ‘‘(I) means the offering of tele-14 communications service using a duly 15 authorized device that does not re-16 quire an individual license; and 17 ‘‘(II) does not include the provi-18 sion of direct-to-home satellite service, 19 as defined in section 303(v); and 20 ‘‘(xi) the term ‘wireline backhaul facil-21 ity’ means an above-ground or under-22 ground wireline facility used to transport 23 communications service or other electronic 24 communications from a small personal 25 VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS 17 •S 1699 IS wireless service facility or its adjacent net-1 work interface device to a communications 2 network.’’. 3 SEC. 3. GAO STUDY OF BROADBAND DEPLOYMENT ON 4 TRIBAL LAND AND ON OR NEAR TRUST LAND. 5 Not later than 1 year after the date of enactment 6 of this Act, the Comptroller General of the United States 7 shall— 8 (1) in consultation with the Secretary of Agri-9 culture, the Director of the Bureau of Indian Af-10 fairs, and the Federal Communications Commission, 11 study the process for obtaining a grant of a right- 12 of-way to deploy broadband infrastructure on Tribal 13 land or on or near trust land, as defined in section 14 3765 of title 38, United States Code; 15 (2) in conducting the study under paragraph 16 (1), consider the unique challenges involved in 17 broadband deployment on Tribal land and on or 18 near trust land; and 19 (3) submit to Congress a report on the study 20 conducted under paragraph (1). 21 Æ VerDate Sep 11 2014 06:22 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6301 E:\BILLS\S1699.IS S1699kjohnson on DSK79L0C42 with BILLS AMENDED IN SENATE JUNE 24, 2019 AMENDED IN ASSEMBLY MAY 16, 2019 AMENDED IN ASSEMBLY APRIL 22, 2019 california legislature—2019–20 regular session ASSEMBLY BILL No. 1779 Introduced by Assembly Member Daly (Coauthor: Assembly Member Rodriguez) February 22, 2019 An act to add Chapter 14 (commencing with Section 11857) to Part 2 of Division 10.5 of the Health and Safety Code, relating to public health. legislative counsel’s digest AB 1779, as amended, Daly. Recovery residences. Existing law provides for the licensure and regulation by the State Department of Health Care Services of adult alcoholism and drug abuse recovery and treatment facilities for adults. Existing law defines a facility for those purposes to mean a premise, place, or building that provides residential nonmedical services to adults who are recovering from drug or alcohol abuse or who need drug or alcohol recovery treatment or detoxification services. This bill would establish, and require the department to adopt and implement, minimum standards for counties seeking to use state funding to offer recovery residences, as defined. The bill would also require the National Alliance for Recovery Residences to deny an application for, or deny or revoke the recognition, registration, or certification of, a recovery residence under certain circumstances, including if the recovery residence fails to meet the minimum standards. 96 The bill would require the department to report to the Legislature, on or before January 1, 2025, the number and types of complaints received by certifying entities and the department, the status of complaints received, and the geographic concentration of reported complaints, and to maintain on its internet website information regarding residences for which the certification was revoked. complaints. The bill would also include legislative findings and declarations. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  (1)  Substance use disorder is ranked in the top five clinically line 4 preventable burdens on health care spending. line 5 (2)  The level of health care services used by substance use line 6 disorder patients before receiving treatment is more than double line 7 that of the general population. It has been shown that after 12 line 8 months of treatment of substance use disorders, the levels of health line 9 care services received return to almost average. line 10 (3)  An estimated 4 to 5 years is necessary for persons line 11 experiencing the chronic disease of addiction to reach a full, line 12 sustained recovery, and the first 30 to 90 days after initial treatment line 13 are the most critical for preventing relapse, making it imperative line 14 that recovery residences be expanded as a means of reducing costs line 15 associated with multiple treatment episodes. line 16 (4)  There are an estimated 3.5 million persons with diagnosable line 17 substance use disorders in California and a limited number of line 18 available recovery residences to effectively provide healthy living line 19 environments for long-term recovery. line 20 (5)  The need for quality recovery residence housing will line 21 continue to rise throughout the next decade. line 22 (b)  Therefore, it is the intent of the Legislature, in enacting this line 23 act, to identify best practices for recovery residences so that all of line 24 the following may occur: line 25 (1)  Access to legitimate recovery residence housing can be line 26 expanded. 96 — 2 — AB 1779 line 1 (2)  Those currently living in recovery residences may see an line 2 improved level of safety and a reduction in deaths due to opioid line 3 abuse and overdose. line 4 (3)  Local governments can recognize quality recovery residences line 5 for their valuable contributions to the continuum of care in line 6 addiction treatment and recovery. line 7 SEC. 2. Chapter 14 (commencing with Section 11857) is added line 8 to Part 2 of Division 10.5 of the Health and Safety Code, to read: line 9 line 10 Chapter 14. Recovery Residences line 11 line 12 11857. (a)  For purposes of this chapter, “recovery residence” line 13 refers to a residential property as defined in subdivision (c) of line 14 Section 11833.05. line 15 (b)  The department shall adopt the Best Practices for Operating line 16 Recovery Housing (BPORH) that includes suggested minimum line 17 standards for operating recovery housing, upon its distribution by line 18 the United States Department of Health and Human Services as line 19 the minimum requirements for counties seeking to offer recovery line 20 housing using state funding. Until the BPORH is distributed, the line 21 department shall adopt the most recent standards approved by the line 22 National Alliance for Recovery Residences (NARR) as the line 23 minimum standard for receiving state funding for recovery line 24 residence housing. Upon distribution of the Best Practices for line 25 Operating Recovery Housing (BPORH) by the United States line 26 Department of Health and Human Services pursuant to Section line 27 290ee–5(a) of Title 42 of the United States Code, each specific line 28 residence performance requirement that exceeds the NARR line 29 standards for recovery residences shall be added to the minimum line 30 standard for receiving state funding for recovery residence line 31 housing. A residence that is certified by an organization that is line 32 currently a recognized affiliate of NARR and has adopted the line 33 standards approved by NARR, and subsequently the including a line 34 requirement that opioid overdose reversal medication be readily line 35 available in case of an onsite opioid overdose emergency, and any line 36 additional standards identified by the BPORH, shall be presumed line 37 to have met the minimum requirement for best practices. best line 38 practices operating requirement. line 39 11857.02. An application for, or the recognition, registration, line 40 or certification of, a recovery residence shall be denied or revoked 96 AB 1779 — 3 — line 1 by a state affiliate of NARR under any of the following line 2 circumstances: line 3 (a)  If the residence owner or operator name in the application line 4 is listed on the Department of Health and Human Services’ line 5 exclusions list pursuant to Sections 1128 and 1156 of the Social line 6 Security Act (42 U.S.C. Section 1320a-7 and 42 U.S.C. Section line 7 1320c-5). line 8 (b)  If an applicant has previously applied for a license to operate line 9 a residential alcoholism or drug abuse recovery or treatment line 10 facility, or certified alcoholism or drug abuse recovery or treatment line 11 program, or previously held a license to operate a residential line 12 alcoholism or drug abuse recovery or treatment facility, and that line 13 application was denied or the previous license was revoked, line 14 suspended, terminated, surrendered, forfeited, or otherwise subject line 15 to disciplinary or administrative action by the department, including line 16 the imposition of civil penalties, when the department determines line 17 recognition, registration, or certification would be inconsistent line 18 with the ethical and safety standards required for that status. line 19 (c)  If the residence is not operating in compliance with NARR line 20 or BPORH requirements or applicable state or federal laws. If this line 21 subdivision applies, the entity shall notify the department. line 22 11857.03. A city, City, county, city and county, or local law line 23 enforcement entity that has documented evidence that a recovery line 24 residence is not operating in compliance with NARR or BPORH line 25 standards to an extent that resident or community safety is being line 26 impacted, in a manner that suggests fraudulent activity is occurring, line 27 or in a manner that would require licensure as a residential line 28 treatment facility, may report these findings to the department and line 29 to an entity described in Section 11857.01. The department or a line 30 city, county, or city and county, or local law enforcement, may line 31 request that the residence obtain recognition, registration, line 32 certification, or licensure, as applicable, as a recovery residence line 33 or treatment facility within 90 days of being notified of that line 34 deficiency by the department or an entity described in Section line 35 11857.01 in order to improve the conditions at the residence and line 36 support positive relationships with the community. If the recovery line 37 residence is providing treatment for addiction, the recovery line 38 residence shall cease providing services that may be provided only line 39 pursuant to a valid license until the appropriate license has been line 40 issued. 96 — 4 — AB 1779 line 1 11857.04. The department shall maintain and post on its line 2 internet website a registry containing the following information: line 3 (a)  The street address of each recovery residence that has had line 4 its recognition, registration, or certification revoked, or whose line 5 application was denied, by an entity described in Section 11857.01 line 6 in California. line 7 (b)  The name of each operator of a recovery residence that has line 8 had its recognition, registration, or certification revoked, or whose line 9 application has been denied, by an entity described in Section line 10 11857.01 in California. line 11 11857.07. (a)  This chapter does not prohibit a county line 12 contracting authority from requiring quality and performance line 13 standards that are similar to, or that exceed, the standards described line 14 in this chapter, when contracting for recovery residence services. line 15 (b)  An entity may enter into a memorandum of understanding line 16 with a county for the purposes of determining if the county’s line 17 requirements meet or exceed the minimum requirements of the line 18 entity. A memorandum of understanding may include the granting line 19 of reciprocity based upon the requirements of the county contract. line 20 11857.08. (a)  The department shall report to the Legislature line 21 on or before January 1, 2025, the number and types of complaints line 22 received by entities and the department pursuant to Section line 23 11857.03, the status of complaints received, and the geographic line 24 concentration of reported complaints. line 25 (b)  The report submitted pursuant to subdivision (a) shall be line 26 submitted in compliance with Section 9795 of the Government line 27 Code. O 96 AB 1779 — 5 — AMENDED IN ASSEMBLY JUNE 18, 2019 AMENDED IN SENATE MAY 2, 2019 AMENDED IN SENATE MARCH 25, 2019 SENATE BILL No. 438 Introduced by Senator Hertzberg (Principal coauthor: Assembly Member Eggman) (Coauthor: Senator Galgiani) (Coauthor: Assembly Member Aguiar-Curry) February 21, 2019 An act to amend Section 53110 of, and to add Section 53100.5 to, the Government Code, and to add Section Sections 1797.223 and 1798.8 to the Health and Safety Code, relating to emergency services. legislative counsel’s digest SB 438, as amended, Hertzberg. Emergency medical services: dispatch. Existing law, the Warren-911-Emergency Assistance Act, requires every local public agency to establish within its jurisdiction a basic emergency telephone system that includes, at a minimum, police, firefighting, and emergency medical and ambulance services. Existing law authorizes a public agency to incorporate private ambulance service into the system. This bill would prohibit a public agency from delegating, assigning, or contracting for “911” emergency call processing or notification duties regarding the dispatch of emergency response resources unless the delegation or assignment is to, or the contract or agreement is with, another public agency. The bill would further exempt from that prohibition a public agency that is a joint powers authority that 96 contracted for emergency response resources on or before January 1, 2019, under certain conditions. The bill would authorize a public agency that contracted for dispatch of emergency response resources on or before January 1, 2019, to continue that contract or to renegotiate or adopt new contracts if the public agency and the public safety agencies that provide prehospital emergency medical services consent. The bill would state the Legislature’s intent to affirm and clarify a public agency’s duty and authority to develop emergency communication procedures and respond quickly to a person seeking emergency services through the “911” emergency telephone system. Existing law, the Emergency Medical Services System and the Prehospital Emergency Medical Care Personnel Act, authorizes each county to develop an emergency medical services (EMS) program and designate a local EMS agency. Existing law delegates responsibility over the medical direction and management of an EMS system to the medical director of the local EMS agency, and requires the local EMS agency to maintain medical control over the EMS system in accordance with minimum standards established by the Emergency Medical Services Authority. This bill would require a public safety agency that provides dispatch of prehospital emergency response resources to make a connection available from the public safety agency dispatch center to an EMS provider’s dispatch center, as specified. The bill would provide that the public safety agency is entitled to recover from an EMS provider the costs incurred in establishing and maintaining the connection. The bill would require all local EMS-agency-approved EMS providers and EMS system providers to be simultaneously notified and dispatched at the same response code. The bill would also, unless the local EMS agency takes affirmative action to the contrary, deem a public safety agency’s plan to implement an EMD or advanced life support program to be approved within 60 days of submission if the plan satisfies state guidelines and regulations. This bill would provide that medical control by a local EMS agency medical director or medical direction and management of an EMS system may not be construed to, among other things, limit the authority of a public safety agency to directly receive and administer “911” emergency requests originating within the agency’s territorial jurisdiction or authorize a local EMS agency to reduce a public safety agency’s response mode or deployment of emergency response resources within the agency’s territorial jurisdiction. The bill would also clarify 96 — 2 — SB 438 that a public safety agency does not transfer its authority to administer emergency medical services to a local EMS agency by consenting to conform its prehospital response to comply with an EMS dispatch protocol adhering to the policies, procedures, and protocols adopted by a local EMS agency. Vote: majority. Appropriation: no. Fiscal committee: no.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 53100.5 is added to the Government line 2 Code, to read: line 3 53100.5. The Legislature finds and declares all of the following: line 4 (a)  The provision of fire protection services, rescue services, line 5 emergency medical services, hazardous material response services, line 6 ambulance services, and other services related to the protection of line 7 lives and property is a matter of public safety and critical to the line 8 public peace, health, and safety of the state. line 9 (b)  It is in the public interest that emergency services be line 10 deployed quickly and efficiently in the interest of saving lives and line 11 reducing the damage or destruction of property. line 12 (c)  The establishment of a uniform, statewide policy regarding line 13 a public agency’s ability to receive and process emergency calls line 14 is a matter of statewide concern and an interest to all inhabitants line 15 and citizens of this state. line 16 (d)  The purpose of the act that added this section is to affirm line 17 and clarify a public agency’s duty, responsibility, and jurisdiction line 18 to establish and improve emergency communication procedures line 19 and quickly respond to any person calling the telephone number line 20 “911” seeking fire, medical, rescue, or other emergency services. line 21 SEC. 2. Section 53110 of the Government Code is amended line 22 to read: line 23 53110. (a)  Every system shall include police, firefighting, and line 24 emergency medical and ambulance services, and may include other line 25 emergency services, in the discretion of the affected local public line 26 agency, such as poison control services, suicide prevention line 27 services, and civil defense services. The system may incorporate line 28 private ambulance service. In areas in which a public safety agency line 29 of the state provides emergency services, the system shall include line 30 the public safety agency or agencies. 96 SB 438 — 3 — line 1 (b)  Notwithstanding subdivision (a), a public agency shall not line 2 delegate, assign, or enter into a contract for “911” call processing line 3 or emergency notification duties regarding the dispatch of line 4 emergency response resources except as provided in subdivision line 5 (c) or if the delegation or assignment is to, or the contract or line 6 agreement is with, another public agency. line 7 (c)  Notwithstanding subdivision (b), a the following entities line 8 may contract for dispatch of emergency response resources only line 9 as described: line 10 (1)  A joint powers authority that contracted for dispatch of line 11 emergency response resources on or before January 1, 2019, may line 12 continue to contract for dispatch of those resources and may line 13 renegotiate or adopt new contracts, if the membership of the joint line 14 powers authority includes all public safety agencies that provide line 15 prehospital emergency medical services and the joint powers line 16 authority consents to the renegotiation or adoption of the contract. line 17 (2)  A public agency that has contracted for dispatch of line 18 emergency response resources on or before January 1, 2019, may line 19 continue to contract for dispatch of those resources and may line 20 renegotiate or adopt new contracts if the public agency and the line 21 public safety agencies that provide prehospital emergency medical line 22 services consent to the renegotiation and adoption of the contract. line 23 SEC. 3. Section 1797.223 is added to the Health and Safety line 24 Code, to read: line 25 1797.223. (a)  (1)  A public safety agency that provides dispatch line 26 of prehospital emergency response resources shall make a line 27 connection available from the public safety agency dispatch center line 28 to an emergency medical services (EMS) provider’s dispatch center line 29 for the timely transmission of emergency response information. line 30 (2)  A public safety agency shall be entitled to recover from an line 31 EMS provider the costs incurred in establishing and maintaining line 32 a connection required by this subdivision. line 33 (3)  An EMS provider that elects not to use the connection line 34 provided pursuant to this subdivision shall be dispatched by the line 35 appropriate public safety agency and charged the same rates as line 36 any other EMS provider being dispatched by that agency. line 37 (4)  If an EMS provider is not directly dispatched from a public line 38 safety agency, the response interval for calculations for that EMS line 39 provider shall not include the call processing times of the public line 40 safety agency and shall begin upon receipt of notification by the 96 — 4 — SB 438 line 1 EMS provider of the emergency response caller data, either line 2 electronically or by any other means prescribed in paragraph (5). line 3 (5)  For purposes of this subdivision, “connection” means either line 4 a direct computer aided despatch (CAD) to CAD link, where line 5 permissible under law, between the public safety agency and an line 6 EMS provider or an indirect connection, including, but not limited line 7 to, a ring down line, intercom, radio, or other electronic means line 8 for timely notification of caller data and the location of the line 9 emergency response. line 10 (b)  Unless an EMS agency has approved an emergency medical line 11 dispatch (EMD) program that allows for a tiered or modified line 12 response, all local EMS providers approved by the local EMS line 13 agency and all statutorily-authorized EMS system providers shall line 14 be simultaneously notified, or as close as technologically feasible, line 15 and dispatched at the same response code. A public safety agency line 16 implementing an EMD program shall be subject to the review and line 17 approval of the local EMS agency and shall operate the program line 18 in accordance with applicable state guidelines and regulations. line 19 (c)  Unless the local EMS agency takes affirmative action to the line 20 contrary, a public safety agency’s plan to implement an EMD or line 21 advanced life support program shall be deemed approved within line 22 60 days of submission if the plan satisfies state guidelines and line 23 regulations. line 24 SEC. 3. line 25 SEC. 4. Section 1798.8 is added to the Health and Safety Code, line 26 to read: line 27 1798.8. (a)  Notwithstanding any provision of this division, line 28 medical control by a local EMS agency medical director, or line 29 medical direction and management of an emergency medical line 30 services system, as described in this chapter, shall not be construed line 31 to do either any of the following: line 32 (1)  Limit, supplant, prohibit, or otherwise alter a public safety line 33 agency’s authority to directly receive, process, and administer line 34 requests for assistance originating within the public safety agency’s line 35 territorial jurisdiction through the emergency “911” system line 36 established pursuant to Article 6 (commencing with Section 53100) line 37 of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government line 38 Code. 96 SB 438 — 5 — line 1 (2)  Authorize or permit a local EMS agency to delegate, assign, line 2 or enter into a contract in contravention of subdivision (b) of line 3 Section 53110 of the Government Code. line 4 (b)  Notwithstanding any provision of this division, medical line 5 control or medical direction and management of an emergency line 6 medical services system, as described in this chapter, shall not be line 7 construed to authorize line 8 (3)  Authorize or permit a local EMS agency to reduce a public line 9 safety agency’s response mode or deployment of public safety line 10 emergency response resources within the public safety agency’s line 11 territorial jurisdiction. line 12 (4)  Authorize or permit a local EMS agency to prevent a public line 13 safety agency from providing mutual aid pursuant to the California line 14 Emergency Services Act (Chapter 7 (commencing with Section line 15 8550) of Division 1 of Title 2 of the Government Code). line 16 (c) line 17 (b)  A public safety agency’s voluntary consent to conform its line 18 prehospital response or response mode to comply with an line 19 emergency medical dispatch protocol adherence to the policies, line 20 procedures, and protocols adopted by a local EMS agency does line 21 not constitute a transfer of any of the public safety agency’s line 22 authorities regarding the administration of emergency medical line 23 services. O 96 — 6 — SB 438 AMENDED IN ASSEMBLY JULY 1, 2019 AMENDED IN ASSEMBLY JUNE 17, 2019 AMENDED IN SENATE APRIL 29, 2019 AMENDED IN SENATE APRIL 10, 2019 SENATE BILL No. 667 Introduced by Senator Hueso February 22, 2019 An act to amend Section 44502 of, and to add Section 44527 to, the Health and Safety Code, and to add Sections 42999.5 and 42999.6 to the Public Resources Code, relating to greenhouse gases. legislative counsel’s digest SB 667, as amended, Hueso. Greenhouse gases: recycling infrastructure and facilities. The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as a part of the market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law establishes the CalRecycle Greenhouse Gas Reduction Revolving Loan Program, administered by the Department of Resources Recycling and Recovery, to provide loans to reduce the emissions of greenhouse gases by promoting in-state development of infrastructure to process organic and other recyclable materials into new value-added products. 95 Existing law requires the department, with additional moneys from the Greenhouse Gas Reduction Fund that may be appropriated to the department, to administer a grant program to provide financial assistance, in the form of grants, incentive payments, contracts, or other funding mechanisms, to reduce the emissions of greenhouse gases by promoting in-state development of infrastructure, food waste prevention, or other projects to reduce organic waste or process organic and other recyclable materials into new, value-added products. The California Pollution Control Financing Authority Act establishes the California Pollution Control Financing Authority, with specified powers and duties, and authorizes the authority to approve financing for projects or pollution control facilities to prevent or reduce environmental pollution. This bill would require the department to develop, on or before January 1, 2021, and would authorize the department to amend, a 5-year investment strategy needs assessment to drive support innovation and support technological development and infrastructure, infrastructure development, in order to meet specified organic waste reduction and recycling targets, as provided. The bill would require, on or before June 1, 2021, the department, in coordination with the Treasurer and the California Pollution Control Financing Authority, to develop financial incentive mechanisms, including, among other mechanisms, loans and incentive payments, to fund and accelerate public and private capital towards organic waste diversion and recycling infrastructure. The bill would authorize the authority to provide any alternative financing necessary to implement and administer those financial incentive mechanisms for the benefit of public or private participating parties, in accordance with the investment strategy. needs assessment. The bill would create establish the California Recycling Infrastructure Investment Account in the State Treasury, to be administered by the California Pollution Control Financing Authority. The bill would require the Treasurer, in coordination with the department, to coordinate with the States of Nevada, Oregon, and Washington on infrastructure financing to support the recycling needs of the region and to create an advisory stakeholder committee to support development of interstate recycling infrastructure and markets for recyclable materials. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ 95 — 2 — SB 667 The people of the State of California do enact as follows: line 1 SECTION 1. (a)  The Legislature finds and declares all of the line 2 following: line 3 (1)  Organic waste is a key source of methane emissions, a line 4 powerful climate forcer for greenhouse gases and short-lived line 5 climate pollutants that significantly impact air quality, public line 6 health, and climate change. line 7 (2)  The state has been a leader in advancing policies that line 8 drastically divert organic waste from landfills and recycle it, line 9 including by mandating a 40-percent reduction in methane line 10 emissions by 2030, compared to 2013 levels. line 11 (3)  The state is facing a crisis due to international dynamics that line 12 have critically impacted our traditional recycling markets. line 13 (4)  The state, in coordination with the States of Nevada, Oregon, line 14 and Washington, requires a stable, multiyear incentive program line 15 that leverages private and other additional public funds to build line 16 infrastructure to meet the needs of the state’s organic waste line 17 diversion mandate and recycling market crisis. line 18 (b)  It is the intent of the Legislature that moneys subsequently line 19 appropriated for the Organic Waste Diversion Infrastructure Act line 20 of 2019, including, but not limited to, any moneys appropriated line 21 from the Greenhouse Gas Reduction Fund, established pursuant line 22 to Section 16428.8 of the Government Code, be expended for line 23 grants pursuant to Section 42999 of the Public Resources Code, line 24 notwithstanding subdivision (a) of Section 42999 of the Public line 25 Resources Code, for loans pursuant to Section 42997 of the Public line 26 Resources Code, and for financing administered pursuant to Section line 27 44527 of the Health and Safety Code. line 28 SEC. 2. Section 44502 of the Health and Safety Code is line 29 amended to read: line 30 44502. It is the purpose of this division to carry out and make line 31 effective the findings of the Legislature and to that end to do all line 32 of the following, to the mutual benefit of the people of the state line 33 and to protect their health and welfare: line 34 (a)  To provide industry within the state, irrespective of company line 35 size, with an alternative method of financing in providing, line 36 acquiring, developing, enlarging, or installing facilities for line 37 establishing pollution control, providing supplies of clean water, 95 SB 667 — 3 — line 1 and producing energy from alternative or renewable sources, that line 2 are needed to accomplish the purposes of this division. line 3 (b)  To assist economically distressed counties and cities to line 4 develop and implement growth policies and programs that reduce line 5 pollution hazards and the degradation of the environment or line 6 promote infill development. line 7 (c)  To assist with the financing of the costs of assessment, line 8 remedial planning and reporting, technical assistance, and the line 9 cleanup, remediation, or development of brownfield sites, or other line 10 similar or related costs. line 11 (d)  To provide alternative financing for the development of line 12 organic waste diversion technologies and infrastructure. line 13 SEC. 3. Section 44527 is added to the Health and Safety Code, line 14 to read: line 15 44527. The authority may provide any alternative financing line 16 necessary to implement and administer financial incentive line 17 mechanisms, pursuant to Section 42999.6 of the Public Resources line 18 Code, for the benefit of public or private participating parties, in line 19 accordance with the investment strategy needs assessment line 20 developed pursuant to Section 42999.5 of the Public Resources line 21 Code, including, but not limited to, the funding and administration line 22 of financial assistance through mechanisms, such as grants, direct line 23 loans, forgivable loans, loan loss reserves, loan guarantees, line 24 revolving loan funds, loan participation, and other credit facilities. line 25 SEC. 4. Section 42999.5 is added to the Public Resources Code, line 26 to read: line 27 42999.5. (a)  This section and Section 42999.6 shall be known, line 28 and may be cited, as the Organic Waste Diversion Infrastructure line 29 Investment Act of 2019. line 30 (b)  The department shall support technology advancement and line 31 infrastructure to meet the state’s 2025 organic waste reduction line 32 target pursuant to Section 39730.6 of the Health and Safety Code line 33 and the state’s recycling goals pursuant to Section 41780.01. line 34 (c)  The department shall develop, on or before January 1, 2021, line 35 and may amend, a five-year investment strategy needs assessment line 36 to drive support innovation and support technological development line 37 and infrastructure, infrastructure development, in order to meet line 38 the state’s 2025 organic waste reduction target pursuant to Section line 39 39730.6 of the Health and Safety Code and the state’s recycling 95 — 4 — SB 667 line 1 goals pursuant to Section 41780.01. The investment strategy needs line 2 assessment shall do include all of the following: line 3 (1)  (A)  Set forth a five-year plan for the expenditure of moneys line 4 appropriated for purposes of this section. Identification of line 5 technology and infrastructure capacity gaps. line 6 (B)  An eligible expenditure may occur over multiple fiscal line 7 years. line 8 (C)  The department may make multiyear funding commitments line 9 over a period of more than one fiscal year. line 10 (2)  Assess Assessment of the amount of money needed to build line 11 the infrastructure necessary to achieve the waste reduction target line 12 pursuant to Section 39730.6 of the Health and Safety Code. line 13 (3)  Identify Identification of priorities and strategies for financial line 14 incentive mechanisms to help achieve the organic waste reduction line 15 target pursuant to Section 39730.6 of the Health and Safety Code line 16 and the state’s recycling goals pursuant to Section 41780.01. line 17 SEC. 5. Section 42999.6 is added to the Public Resources Code, line 18 to read: line 19 42999.6. (a)  On or before June 1, 2021, the department, in line 20 coordination with the Treasurer and the California Pollution line 21 Control Financing Authority, established pursuant to Section 44515 line 22 of the Health and Safety Code, shall develop financial incentive line 23 mechanisms, including, but not limited to, loans, incentive line 24 payments, credit facilities, pooled bonds, and other financing line 25 strategies, to fund and accelerate public and private capital towards line 26 organic waste diversion and recycling infrastructure. line 27 (b)  (1)  There is hereby established in the State Treasury the line 28 California Recycling Infrastructure Investment Account, which line 29 the California Pollution Control Financing Authority shall line 30 administer. line 31 (2)  In providing any financial incentives pursuant to this line 32 subdivision, the California Pollution Control Financing Authority, line 33 in coordination with the department, shall do all of the following: line 34 (A)  Ensure that a recipient of a financial incentive or a line 35 beneficiary of a financial incentive leverages local, state, federal, line 36 and private funding sources to maximize investment in organic line 37 waste diversion and recycling infrastructure. line 38 (B)  Prioritize projects that have multiple benefits, including, line 39 but not limited to, reducing greenhouse gas emissions, increasing line 40 solid waste diversion, increasing workforce training and 95 SB 667 — 5 — line 1 development, reducing collection and recycling costs to local line 2 governments, and creating jobs. line 3 (C)  Prioritize projects that maximize benefits while minimizing line 4 negative consequences to disadvantaged communities, as identified line 5 pursuant to Section 39711 of the Health and Safety Code, and to line 6 low-income communities, as defined in Section 39713 of the Health line 7 and Safety Code. line 8 (D)  Seek to achieve a portfolio approach to funding and line 9 financing pursuant to this subdivision that supports a diverse set line 10 of projects. line 11 (c)  The Treasurer, in coordination with the department, shall line 12 coordinate with the States of Nevada, Oregon, and Washington line 13 on infrastructure financing to support the recycling needs of the line 14 region and shall create an advisory stakeholder committee to line 15 support development of interstate recycling infrastructure and line 16 markets for recyclable materials. O 95 — 6 — SB 667 AMENDED IN ASSEMBLY JULY 1, 2019 AMENDED IN ASSEMBLY JUNE 25, 2019 AMENDED IN ASSEMBLY JUNE 12, 2019 AMENDED IN SENATE MAY 21, 2019 AMENDED IN SENATE MAY 7, 2019 AMENDED IN SENATE APRIL 24, 2019 AMENDED IN SENATE APRIL 4, 2019 AMENDED IN SENATE MARCH 25, 2019 SENATE BILL No. 330 Introduced by Senator Skinner February 19, 2019 An act to amend Section 65589.5 of, to amend, repeal, and add Sections 65943 and 65950 of, to add and repeal Sections 65905.5, 65913.3, 65913.10, 65941.1, and 65950.2 of, and to add and repeal Chapter 12 (commencing with Section 66300) of Division 1 of Title 7 of, the Government Code, relating to housing. legislative counsel’s digest SB 330, as amended, Skinner. Housing Crisis Act of 2019. (1)  The Housing Accountability Act, which is part of the Planning and Zoning Law, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes specified written findings based on a preponderance of the evidence in the record. The 91 act specifies that one way to satisfy that requirement is to make findings that the housing development project or emergency shelter is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete. The act requires a local agency that proposes to disapprove a housing development project that complies with applicable, objective general plan and zoning standards and criteria that were in effect at the time the application was deemed to be complete, or to approve it on the condition that it be developed at a lower density, to base its decision upon written findings supported by substantial evidence on the record that specified conditions exist, and places the burden of proof on the local agency to that effect. The act requires a court to impose a fine on a local agency under certain circumstances and requires that the fine be at least $10,000 per housing unit in the housing development project on the date the application was deemed complete. This bill, until January 1, 2025, would specify that an application is deemed complete for these purposes if a preliminary application was submitted, as described below. Existing law authorizes the applicant, a person who would be eligible to apply for residency in the development or emergency shelter, or a housing organization to bring an action to enforce the Housing Accountability Act. If, in that action, a court finds that a local agency failed to satisfy the requirement to make the specified findings described above, existing law requires the court to issue an order or judgment compelling compliance with the act within 60 days, as specified. This bill, until January 1, 2025, would additionally require a court to issue the order or judgment previously described if the local agency required or attempted to require certain housing development projects to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted. Existing law authorizes a local agency to require a housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need, as specified. This bill, until January 1, 2025, would, notwithstanding those provisions or any other law and with certain exceptions, require that a housing development project only be subject to the preconstruction 91 — 2 — SB 330 development ordinances, policies, and standards adopted and in effect when a preliminary application is submitted, except as specified. (2)  The Planning and Zoning Law, except as provided, requires that a public hearing be held on an application for a variance from the requirements of a zoning ordinance, an application for a conditional use permit or equivalent development permit, a proposed revocation or modification of a variance or use permit or equivalent development permit, or an appeal from the action taken on any of those applications. That law requires that notice of a public hearing be provided in accordance with specified procedures. This bill, until January 1, 2025, would prohibit a city or county from conducting more than 5 hearings, as defined, held pursuant to these provisions, or any other law, ordinance, or regulation requiring a public hearing, if a proposed housing development project complies with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete, as defined. The bill would require the city or county to consider and either approve or disapprove the housing development project at any of the 5 hearings consistent with the applicable timelines under the Permit Streamlining Act. (3)  The Planning and Zoning Law requires a county or city to designate and zone sufficient vacant land for residential use with appropriate standards, as provided. That law also authorizes a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process and not subject to a conditional use permit if the development satisfies certain objective planning standards. This bill, until January 1, 2025, with respect to land where housing is an allowable use on or after January 1, 2018, would prohibit a county or city in which specified conditions exist, determined by the Department of Housing and Community Development as provided, from imposing any new, increasing or enforcing any existing, requirement that a proposed housing development include parking in excess of specified amounts. If the city or county grants a conditional use permit approving a proposed housing development project and that project would have been eligible for a higher density under the city’s or county’s general plan land use designation and zoning ordinances as in effect on January 1, 2018, the bill would also require the city or county to allow the project at that higher density. The bill would require a project that requires the demolition of housing to comply with specified requirements, including the provision of relocation assistance 91 SB 330 — 3 — and a right of first refusal in the new housing to displaced occupants, as provided. The bill would require that any units for which a developer provides relocation assistance or a right of first refusal be considered in determining whether the housing development project satisfies the requirements, if applicable, of an inclusionary housing ordinance of the county or city. The bill would state that these provisions would prevail over any conflicting provision of the Planning and Zoning Law or other law regulating housing development in this state, except as specifically provided. The bill would also require that any exception to these provisions, including an exception for the health and safety of occupants of a housing development project, be construed narrowly. (4) (3)  The Permit Streamlining Act, which is part of the Planning and Zoning Law, requires each state agency and each local agency to compile one or more lists that specify in detail the information that will be required from any applicant for a development project. That law requires the state or local agency to make copies of this information available to all applicants for development projects and to any persons who request the information. The bill, until January 1, 2025, for purposes of any state or local law, ordinance, or regulation that requires a city or county to determine whether the site of a proposed housing development project is a historic site, would require the city or county to make that determination, which would remain valid for the pendency of the housing development, at the time the application is deemed complete, except as provided. The bill, until January 1, 2025, would also require that each local agency make copies of any above-described list with respect to information required from an applicant for a housing development project available both (A) in writing to those persons to whom the agency is required to make information available and (B) publicly available on the internet website of the local agency. The Permit Streamlining Act requires public agencies to approve or disapprove of a development project within certain timeframes, as specified. The act requires a public agency, upon its determination that an application for a development project is incomplete, to include a list and a thorough description of the specific information needed to complete the application. Existing law authorizes the applicant to submit the additional material to the public agency, requires the public agency to determine whether the submission of the application together with 91 — 4 — SB 330 the submitted materials is complete within 30 days of receipt, and provides for an appeal process from the public agency’s determination. Existing law requires a final written determination by the agency on the appeal no later than 60 days after receipt of the applicant’s written appeal. This bill, until January 1, 2025, would provide that a housing development project, as defined, shall be deemed to have submitted a preliminary application upon providing specified information about the proposed project to the city or county from which approval for the project is being sought. The bill would require each local agency to compile a checklist and application form that applicants for housing development projects may use for that purpose and would require the Department of Housing and Community Development to adopt a standardized form for applicants seeking approval from a local agency that has not developed its own application form. After the submittal of a preliminary application, the bill would provide that a housing development project would not be deemed to have submitted a complete initial application under these provisions if the development proponent revises the project such that the number of residential units or square footage of construction changes by 20% or more until the development proponent resubmits the information required by the bill so that it reflects the revisions. The bill would require a development proponent to submit an application for a development project that includes all information necessary for the agency to review the application under the Permit Streamlining Act within 180 days of submitting the preliminary application. The bill, until January 1, 2025, would require the lead agency, as defined, if the application is determined to be incomplete, to provide the applicant with an exhaustive list of items that were not complete, as specified. The bill, until January 1, 2025, would also provide that all deadlines in the Permit Streamlining Act are mandatory. The Permit Streamlining Act generally requires that a public agency that is the lead agency for a development project approve or disapprove a project within 120 days from the date of certification by the lead agency of an environmental impact report prepared for certain development projects, but reduces this time period to 90 days from the certification of an environmental impact report for development projects meeting certain additional conditions relating to affordability. Existing law defines “development project” for these purposes to mean a use 91 SB 330 — 5 — consisting of either residential units only or mixed-use developments consisting of residential and nonresidential uses that satisfy certain other requirements. This bill, until January 1, 2025, would reduce the time period in which a lead agency under these provisions is required to approve or disapprove a project from 120 days to 90 days, for a development project generally described above, and from 90 days to 60 days, for a development project that meets the above-described affordability conditions. The bill would recast the definition of “development project” for these purposes to mean a housing development project, as defined in the Housing Accountability Act. (5) (4)  The Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries that relates to its planning. That law authorizes the legislative body, if it deems it to be in the public interest, to amend all or part of an adopted general plan, as provided. That law also authorizes the legislative body of any county or city, pursuant to specified procedures, to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes. This bill, until January 1, 2025, with respect to land where housing is an allowable use on or after January 1, 2018, use, except as specified, would prohibit a county or city, including the electorate exercising its local initiative or referendum power, in which specified conditions exist, determined by the Department of Housing and Community Development as provided, from enacting a development policy, standard, or condition, as defined, that would have the effect of (A) changing the land use designation or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing zoning district below what was allowed under the general plan or specific plan land use designation and zoning ordinances of the county or city as in effect on January 1, 2018; (B) imposing or enforcing a moratorium on housing development within all or a portion of the jurisdiction of the county or city, except as provided; (C) imposing or enforcing new design standards established on or after January 1, 2018, that are not objective design standards, as defined; or (D) establishing or implementing certain limits on the number of permits issued by, or the population of, the county or city, unless the limit was approved prior 91 — 6 — SB 330 to January 1, 2005, in a predominantly agricultural county, as defined. The bill would, notwithstanding these prohibitions, allow a city or county to prohibit the commercial use of land zoned for residential use consistent with the authority of the city or county conferred by other law. The bill would state that these prohibitions would apply to any zoning ordinance adopted or amended on or after January 1, 2018, the effective date of these provisions, and that any development policy, standard, or condition on or after that date that does not comply would be deemed void. This bill would also require a project that requires the demolition of housing to comply with specified requirements, including the provision of relocation assistance and a right of first refusal in the new housing to displaced occupants, as provided. The bill would provide that these provisions do not supersede any provision of a locally adopted ordinance that places greater restrictions on the demolition of residential dwelling units or that requires greater relocation assistance to displaced households. The bill would state that these prohibitions would prevail over any conflicting provision of the Planning and Zoning Law or other law regulating housing development in this state, except as specifically provided. The bill would also require that any exception to these provisions, including an exception for the health and safety of occupants of a housing development project, be construed narrowly. The bill would also declare any requirement to obtain local voter approval or supermajority approval of any body of the county or city for specified purposes related to housing development against public policy and void. (6) (5)  This bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (7) (6)  By imposing various new requirements and duties on local planning officials with respect to housing development, and by changing the scope of a crime under the State Housing Law, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. 91 SB 330 — 7 — With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (8) (7)  This bill would provide that its provisions are severable. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. This act shall be known, and may be cited, as the line 2 Housing Crisis Act of 2019. line 3 SEC. 2. (a)  The Legislature finds and declares the following: line 4 (1)  California is experiencing a housing supply crisis, with line 5 housing demand far outstripping supply. In 2018, California ranked line 6 49th out of the 50 states in housing units per capita. line 7 (2)  Consequently, existing housing in this state, especially in line 8 its largest cities, has become very expensive. Seven of the 10 most line 9 expensive real estate markets in the United States are in California. line 10 In San Francisco, the median home price is $1.6 million. line 11 (3)  California is also experiencing rapid year-over-year rent line 12 growth with three cities in the state having had overall rent growth line 13 of 10 percent or more year-over-year, and of the 50 United States line 14 cities with the highest United States rents, 33 are cities in line 15 California. line 16 (4)  California needs an estimated 180,000 additional homes line 17 annually to keep up with population growth, and the Governor has line 18 called for 3.5 million new homes to be built over the next 7 years. line 19 (5)  The housing crisis has particularly exacerbated the need for line 20 affordable homes at prices below market rates. line 21 (6)  The housing crisis harms families across California and has line 22 resulted in all of the following: line 23 (A)  Increased poverty and homelessness, especially first-time line 24 homelessness. line 25 (B)  Forced lower income residents into crowded and unsafe line 26 housing in urban areas. line 27 (C)  Forced families into lower cost new housing in greenfields line 28 at the urban-rural interface with longer commute times and a higher line 29 exposure to fire hazard. 91 — 8 — SB 330 line 1 (D)  Forced public employees, health care providers, teachers, line 2 and others, including critical safety personnel, into more affordable line 3 housing farther from the communities they serve, which will line 4 exacerbate future disaster response challenges in high-cost, line 5 high-congestion areas and increase risk to life. line 6 (E)  Driven families out of the state or into communities away line 7 from good schools and services, making the ZIP Code where one line 8 grew up the largest determinate of later access to opportunities line 9 and social mobility, disrupting family life, and increasing health line 10 problems due to long commutes that may exceed three hours per line 11 day. line 12 (7)  The housing crisis has been exacerbated by the additional line 13 loss of units due to wildfires in 2017 and 2018, which impacts all line 14 regions of the state. The Carr Fire in 2017 alone burned over 1,000 line 15 homes, and over 50,000 people have been displaced by the Camp line 16 Fire and the Woolsey Fire in 2018. This temporary and permanent line 17 displacement has placed additional demand on the housing market line 18 and has resulted in fewer housing units available for rent by line 19 low-income individuals. line 20 (8)  Individuals who lose their housing due to fire or the sale of line 21 the property cannot find affordable homes or rental units and are line 22 pushed into cars and tents. line 23 (9)  Costs for construction of new housing continue to increase. line 24 According to the Terner Center for Housing Innovation at the line 25 University of California, Berkeley, the cost of building a 100-unit line 26 affordable housing project in the state was almost $425,000 per line 27 unit in 2016, up from $265,000 per unit in 2000. line 28 (10)  Lengthy permitting processes and approval times, fees and line 29 costs for parking, and other requirements further exacerbate cost line 30 of residential construction. line 31 (11)  The housing crisis is severely impacting the state’s line 32 economy as follows: line 33 (A)  Employers face increasing difficulty in securing and line 34 retaining a workforce. line 35 (B)  Schools, universities, nonprofits, and governments have line 36 difficulty attracting and retaining teachers, students, and employees, line 37 and our schools and critical services are suffering. line 38 (C)  According to analysts at McKinsey and Company, the line 39 housing crisis is costing California $140 billion a year in lost line 40 economic output. 91 SB 330 — 9 — line 1 (12)  The housing crisis also harms the environment by doing line 2 both of the following: line 3 (A)  Increasing pressure to develop the state’s farmlands, open line 4 space, and rural interface areas to build affordable housing, and line 5 increasing fire hazards that generate massive greenhouse gas line 6 emissions. line 7 (B)  Increasing greenhouse gas emissions from longer commutes line 8 to affordable homes far from growing job centers. line 9 (13)  Homes, lots, and structures near good jobs, schools, and line 10 transportation remain underutilized throughout the state and could line 11 be rapidly remodeled or developed to add affordable homes without line 12 subsidy where they are needed with state assistance. line 13 (14)  Reusing existing infrastructure and developed properties, line 14 and building more smaller homes with good access to schools, line 15 parks, and services, will provide the most immediate help with the line 16 lowest greenhouse gas footprint to state residents. line 17 (b)  In light of the foregoing, the Legislature hereby declares a line 18 statewide housing emergency, to be in effect until January 1, 2025. line 19 (c)  It is the intent of the Legislature, in enacting the Housing line 20 Crisis Act of 2019, to do both of the following: line 21 (1)  Suspend certain restrictions on the development of new line 22 housing during the period of the statewide emergency described line 23 in subdivisions (a) and (b). line 24 (2)  Work with local governments to expedite the permitting of line 25 housing in regions suffering the worst housing shortages and line 26 highest rates of displacement. line 27 SEC. 3. Section 65589.5 of the Government Code is amended line 28 to read: line 29 65589.5. (a)  (1)  The Legislature finds and declares all of the line 30 following: line 31 (A)  The lack of housing, including emergency shelters, is a line 32 critical problem that threatens the economic, environmental, and line 33 social quality of life in California. line 34 (B)  California housing has become the most expensive in the line 35 nation. The excessive cost of the state’s housing supply is partially line 36 caused by activities and policies of many local governments that line 37 limit the approval of housing, increase the cost of land for housing, line 38 and require that high fees and exactions be paid by producers of line 39 housing. 91 — 10 — SB 330 line 1 (C)  Among the consequences of those actions are discrimination line 2 against low-income and minority households, lack of housing to line 3 support employment growth, imbalance in jobs and housing, line 4 reduced mobility, urban sprawl, excessive commuting, and air line 5 quality deterioration. line 6 (D)  Many local governments do not give adequate attention to line 7 the economic, environmental, and social costs of decisions that line 8 result in disapproval of housing development projects, reduction line 9 in density of housing projects, and excessive standards for housing line 10 development projects. line 11 (2)  In enacting the amendments made to this section by the act line 12 adding this paragraph, the Legislature further finds and declares line 13 the following: line 14 (A)  California has a housing supply and affordability crisis of line 15 historic proportions. The consequences of failing to effectively line 16 and aggressively confront this crisis are hurting millions of line 17 Californians, robbing future generations of the chance to call line 18 California home, stifling economic opportunities for workers and line 19 businesses, worsening poverty and homelessness, and undermining line 20 the state’s environmental and climate objectives. line 21 (B)  While the causes of this crisis are multiple and complex, line 22 the absence of meaningful and effective policy reforms to line 23 significantly enhance the approval and supply of housing affordable line 24 to Californians of all income levels is a key factor. line 25 (C)  The crisis has grown so acute in California that supply, line 26 demand, and affordability fundamentals are characterized in the line 27 negative: underserved demands, constrained supply, and protracted line 28 unaffordability. line 29 (D)  According to reports and data, California has accumulated line 30 an unmet housing backlog of nearly 2,000,000 units and must line 31 provide for at least 180,000 new units annually to keep pace with line 32 growth through 2025. line 33 (E)  California’s overall homeownership rate is at its lowest level line 34 since the 1940s. The state ranks 49th out of the 50 states in line 35 homeownership rates as well as in the supply of housing per capita. line 36 Only one-half of California’s households are able to afford the line 37 cost of housing in their local regions. line 38 (F)  Lack of supply and rising costs are compounding inequality line 39 and limiting advancement opportunities for many Californians. 91 SB 330 — 11 — line 1 (G)  The majority of California renters, more than 3,000,000 line 2 households, pay more than 30 percent of their income toward rent line 3 and nearly one-third, more than 1,500,000 households, pay more line 4 than 50 percent of their income toward rent. line 5 (H)  When Californians have access to safe and affordable line 6 housing, they have more money for food and health care; they are line 7 less likely to become homeless and in need of line 8 government-subsidized services; their children do better in school; line 9 and businesses have an easier time recruiting and retaining line 10 employees. line 11 (I)  An additional consequence of the state’s cumulative housing line 12 shortage is a significant increase in greenhouse gas emissions line 13 caused by the displacement and redirection of populations to states line 14 with greater housing opportunities, particularly working- and line 15 middle-class households. California’s cumulative housing shortfall line 16 therefore has not only national but international environmental line 17 consequences. line 18 (J)  California’s housing picture has reached a crisis of historic line 19 proportions despite the fact that, for decades, the Legislature has line 20 enacted numerous statutes intended to significantly increase the line 21 approval, development, and affordability of housing for all income line 22 levels, including this section. line 23 (K)  The Legislature’s intent in enacting this section in 1982 and line 24 in expanding its provisions since then was to significantly increase line 25 the approval and construction of new housing for all economic line 26 segments of California’s communities by meaningfully and line 27 effectively curbing the capability of local governments to deny, line 28 reduce the density for, or render infeasible housing development line 29 projects and emergency shelters. That intent has not been fulfilled. line 30 (L)  It is the policy of the state that this section should be line 31 interpreted and implemented in a manner to afford the fullest line 32 possible weight to the interest of, and the approval and provision line 33 of, housing. line 34 (3)  It is the intent of the Legislature that the conditions that line 35 would have a specific, adverse impact upon the public health and line 36 safety, as described in paragraph (2) of subdivision (d) and line 37 paragraph (1) of subdivision (j), arise infrequently. line 38 (b)  It is the policy of the state that a local government not reject line 39 or make infeasible housing development projects, including line 40 emergency shelters, that contribute to meeting the need determined 91 — 12 — SB 330 line 1 pursuant to this article without a thorough analysis of the economic, line 2 social, and environmental effects of the action and without line 3 complying with subdivision (d). line 4 (c)  The Legislature also recognizes that premature and line 5 unnecessary development of agricultural lands for urban uses line 6 continues to have adverse effects on the availability of those lands line 7 for food and fiber production and on the economy of the state. line 8 Furthermore, it is the policy of the state that development should line 9 be guided away from prime agricultural lands; therefore, in line 10 implementing this section, local jurisdictions should encourage, line 11 to the maximum extent practicable, in filling existing urban areas. line 12 (d)  A local agency shall not disapprove a housing development line 13 project, including farmworker housing as defined in subdivision line 14 (h) of Section 50199.7 of the Health and Safety Code, for very line 15 low, low-, or moderate-income households, or an emergency line 16 shelter, or condition approval in a manner that renders the housing line 17 development project infeasible for development for the use of very line 18 low, low-, or moderate-income households, or an emergency line 19 shelter, including through the use of design review standards, line 20 unless it makes written findings, based upon a preponderance of line 21 the evidence in the record, as to one of the following: line 22 (1)  The jurisdiction has adopted a housing element pursuant to line 23 this article that has been revised in accordance with Section 65588, line 24 is in substantial compliance with this article, and the jurisdiction line 25 has met or exceeded its share of the regional housing need line 26 allocation pursuant to Section 65584 for the planning period for line 27 the income category proposed for the housing development project, line 28 provided that any disapproval or conditional approval shall not be line 29 based on any of the reasons prohibited by Section 65008. If the line 30 housing development project includes a mix of income categories, line 31 and the jurisdiction has not met or exceeded its share of the regional line 32 housing need for one or more of those categories, then this line 33 paragraph shall not be used to disapprove or conditionally approve line 34 the housing development project. The share of the regional housing line 35 need met by the jurisdiction shall be calculated consistently with line 36 the forms and definitions that may be adopted by the Department line 37 of Housing and Community Development pursuant to Section line 38 65400. In the case of an emergency shelter, the jurisdiction shall line 39 have met or exceeded the need for emergency shelter, as identified line 40 pursuant to paragraph (7) of subdivision (a) of Section 65583. Any 91 SB 330 — 13 — line 1 disapproval or conditional approval pursuant to this paragraph line 2 shall be in accordance with applicable law, rule, or standards. line 3 (2)  The housing development project or emergency shelter as line 4 proposed would have a specific, adverse impact upon the public line 5 health or safety, and there is no feasible method to satisfactorily line 6 mitigate or avoid the specific adverse impact without rendering line 7 the development unaffordable to low- and moderate-income line 8 households or rendering the development of the emergency shelter line 9 financially infeasible. As used in this paragraph, a “specific, line 10 adverse impact” means a significant, quantifiable, direct, and line 11 unavoidable impact, based on objective, identified written public line 12 health or safety standards, policies, or conditions as they existed line 13 on the date the application was deemed complete. Inconsistency line 14 with the zoning ordinance or general plan land use designation line 15 shall not constitute a specific, adverse impact upon the public line 16 health or safety. line 17 (3)  The denial of the housing development project or imposition line 18 of conditions is required in order to comply with specific state or line 19 federal law, and there is no feasible method to comply without line 20 rendering the development unaffordable to low- and line 21 moderate-income households or rendering the development of the line 22 emergency shelter financially infeasible. line 23 (4)  The housing development project or emergency shelter is line 24 proposed on land zoned for agriculture or resource preservation line 25 that is surrounded on at least two sides by land being used for line 26 agricultural or resource preservation purposes, or which does not line 27 have adequate water or wastewater facilities to serve the project. line 28 (5)  The housing development project or emergency shelter is line 29 inconsistent with both the jurisdiction’s zoning ordinance and line 30 general plan land use designation as specified in any element of line 31 the general plan as it existed on the date the application was line 32 deemed complete, and the jurisdiction has adopted a revised line 33 housing element in accordance with Section 65588 that is in line 34 substantial compliance with this article. For purposes of this line 35 section, a change to the zoning ordinance or general plan land use line 36 designation subsequent to the date the application was deemed line 37 complete shall not constitute a valid basis to disapprove or line 38 condition approval of the housing development project or line 39 emergency shelter. 91 — 14 — SB 330 line 1 (A)  This paragraph cannot be utilized to disapprove or line 2 conditionally approve a housing development project if the housing line 3 development project is proposed on a site that is identified as line 4 suitable or available for very low, low-, or moderate-income line 5 households in the jurisdiction’s housing element, and consistent line 6 with the density specified in the housing element, even though it line 7 is inconsistent with both the jurisdiction’s zoning ordinance and line 8 general plan land use designation. line 9 (B)  If the local agency has failed to identify in the inventory of line 10 land in its housing element sites that can be developed for housing line 11 within the planning period and are sufficient to provide for the line 12 jurisdiction’s share of the regional housing need for all income line 13 levels pursuant to Section 65584, then this paragraph shall not be line 14 utilized to disapprove or conditionally approve a housing line 15 development project proposed for a site designated in any element line 16 of the general plan for residential uses or designated in any element line 17 of the general plan for commercial uses if residential uses are line 18 permitted or conditionally permitted within commercial line 19 designations. In any action in court, the burden of proof shall be line 20 on the local agency to show that its housing element does identify line 21 adequate sites with appropriate zoning and development standards line 22 and with services and facilities to accommodate the local agency’s line 23 share of the regional housing need for the very low, low-, and line 24 moderate-income categories. line 25 (C)  If the local agency has failed to identify a zone or zones line 26 where emergency shelters are allowed as a permitted use without line 27 a conditional use or other discretionary permit, has failed to line 28 demonstrate that the identified zone or zones include sufficient line 29 capacity to accommodate the need for emergency shelter identified line 30 in paragraph (7) of subdivision (a) of Section 65583, or has failed line 31 to demonstrate that the identified zone or zones can accommodate line 32 at least one emergency shelter, as required by paragraph (4) of line 33 subdivision (a) of Section 65583, then this paragraph shall not be line 34 utilized to disapprove or conditionally approve an emergency line 35 shelter proposed for a site designated in any element of the general line 36 plan for industrial, commercial, or multifamily residential uses. In line 37 any action in court, the burden of proof shall be on the local agency line 38 to show that its housing element does satisfy the requirements of line 39 paragraph (4) of subdivision (a) of Section 65583. 91 SB 330 — 15 — line 1 (e)  Nothing in this section shall be construed to relieve the local line 2 agency from complying with the congestion management program line 3 required by Chapter 2.6 (commencing with Section 65088) of line 4 Division 1 of Title 7 or the California Coastal Act of 1976 line 5 (Division 20 (commencing with Section 30000) of the Public line 6 Resources Code). Neither shall anything in this section be line 7 construed to relieve the local agency from making one or more of line 8 the findings required pursuant to Section 21081 of the Public line 9 Resources Code or otherwise complying with the California line 10 Environmental Quality Act (Division 13 (commencing with Section line 11 21000) of the Public Resources Code). line 12 (f)  (1)  Except as provided in subdivision (o), nothing in this line 13 section shall be construed to prohibit a local agency from requiring line 14 the housing development project to comply with objective, line 15 quantifiable, written development standards, conditions, and line 16 policies appropriate to, and consistent with, meeting the line 17 jurisdiction’s share of the regional housing need pursuant to Section line 18 65584. However, the development standards, conditions, and line 19 policies shall be applied to facilitate and accommodate line 20 development at the density permitted on the site and proposed by line 21 the development. line 22 (2)  Except as provided in subdivision (o), nothing in this section line 23 shall be construed to prohibit a local agency from requiring an line 24 emergency shelter project to comply with objective, quantifiable, line 25 written development standards, conditions, and policies that are line 26 consistent with paragraph (4) of subdivision (a) of Section 65583 line 27 and appropriate to, and consistent with, meeting the jurisdiction’s line 28 need for emergency shelter, as identified pursuant to paragraph line 29 (7) of subdivision (a) of Section 65583. However, the development line 30 standards, conditions, and policies shall be applied by the local line 31 agency to facilitate and accommodate the development of the line 32 emergency shelter project. line 33 (3)  Except as provided in subdivision (o), nothing in this section line 34 shall be construed to prohibit a local agency from imposing fees line 35 and other exactions otherwise authorized by law that are essential line 36 to provide necessary public services and facilities to the housing line 37 development project or emergency shelter. line 38 (4)  For purposes of this section, a housing development project line 39 or emergency shelter shall be deemed consistent, compliant, and line 40 in conformity with an applicable plan, program, policy, ordinance, 91 — 16 — SB 330 line 1 standard, requirement, or other similar provision if there is line 2 substantial evidence that would allow a reasonable person to line 3 conclude that the housing development project or emergency line 4 shelter is consistent, compliant, or in conformity. line 5 (g)  This section shall be applicable to charter cities because the line 6 Legislature finds that the lack of housing, including emergency line 7 shelter, is a critical statewide problem. line 8 (h)  The following definitions apply for the purposes of this line 9 section: line 10 (1)  “Feasible” means capable of being accomplished in a line 11 successful manner within a reasonable period of time, taking into line 12 account economic, environmental, social, and technological factors. line 13 (2)  “Housing development project” means a use consisting of line 14 any of the following: line 15 (A)  Residential units only. line 16 (B)  Mixed-use developments consisting of residential and line 17 nonresidential uses with at least two-thirds of the square footage line 18 designated for residential use. line 19 (C)  Transitional housing or supportive housing. line 20 (3)  “Housing for very low, low-, or moderate-income line 21 households” means that either (A) at least 20 percent of the total line 22 units shall be sold or rented to lower income households, as defined line 23 in Section 50079.5 of the Health and Safety Code, or (B) 100 line 24 percent of the units shall be sold or rented to persons and families line 25 of moderate income as defined in Section 50093 of the Health and line 26 Safety Code, or persons and families of middle income, as defined line 27 in Section 65008 of this code. Housing units targeted for lower line 28 income households shall be made available at a monthly housing line 29 cost that does not exceed 30 percent of 60 percent of area median line 30 income with adjustments for household size made in accordance line 31 with the adjustment factors on which the lower income eligibility line 32 limits are based. Housing units targeted for persons and families line 33 of moderate income shall be made available at a monthly housing line 34 cost that does not exceed 30 percent of 100 percent of area median line 35 income with adjustments for household size made in accordance line 36 with the adjustment factors on which the moderate-income line 37 eligibility limits are based. line 38 (4)  “Area median income” means area median income as line 39 periodically established by the Department of Housing and line 40 Community Development pursuant to Section 50093 of the Health 91 SB 330 — 17 — line 1 and Safety Code. The developer shall provide sufficient legal line 2 commitments to ensure continued availability of units for very low line 3 or low-income households in accordance with the provisions of line 4 this subdivision for 30 years. line 5 (5)  Notwithstanding any other law, until January 1, 2025, line 6 “deemed complete” means that the applicant has submitted a line 7 preliminary application pursuant to Section 65941.1. line 8 (6)  “Disapprove the housing development project” includes any line 9 instance in which a local agency does either of the following: line 10 (A)  Votes on a proposed housing development project line 11 application and the application is disapproved, including any line 12 required land use approvals or entitlements necessary for the line 13 issuance of a building permit. line 14 (B)  Fails to comply with the time periods specified in line 15 subdivision (a) of Section 65950. An extension of time pursuant line 16 to Article 5 (commencing with Section 65950) shall be deemed to line 17 be an extension of time pursuant to this paragraph. line 18 (7)  “Lower density” includes any conditions that have the same line 19 effect or impact on the ability of the project to provide housing. line 20 (7) line 21 (8)  Until January 1, 2025, “objective” means involving no line 22 personal or subjective judgment by a public official and being line 23 uniformly verifiable by reference to an external and uniform line 24 benchmark or criterion available and knowable by both the line 25 development applicant or proponent and the public official. line 26 (i)  If any city, county, or city and county denies approval or line 27 imposes conditions, including design changes, lower density, or line 28 a reduction of the percentage of a lot that may be occupied by a line 29 building or structure under the applicable planning and zoning in line 30 force at the time the housing development project’s application is line 31 deemed complete, that have a substantial adverse effect on the line 32 viability or affordability of a housing development for very low, line 33 low-, or moderate-income households, and the denial of the line 34 development or the imposition of conditions on the development line 35 is the subject of a court action which challenges the denial or the line 36 imposition of conditions, then the burden of proof shall be on the line 37 local legislative body to show that its decision is consistent with line 38 the findings as described in subdivision (d), and that the findings line 39 are supported by a preponderance of the evidence in the record, line 40 and with the requirements of subdivision (o). 91 — 18 — SB 330 line 1 (j)  (1)  When a proposed housing development project complies line 2 with applicable, objective general plan, zoning, and subdivision line 3 standards and criteria, including design review standards, in effect line 4 at the time that the application was deemed complete, but the local line 5 agency proposes to disapprove the project or to impose a condition line 6 that the project be developed at a lower density, the local agency line 7 shall base its decision regarding the proposed housing development line 8 project upon written findings supported by a preponderance of the line 9 evidence on the record that both of the following conditions exist: line 10 (A)  The housing development project would have a specific, line 11 adverse impact upon the public health or safety unless the project line 12 is disapproved or approved upon the condition that the project be line 13 developed at a lower density. As used in this paragraph, a “specific, line 14 adverse impact” means a significant, quantifiable, direct, and line 15 unavoidable impact, based on objective, identified written public line 16 health or safety standards, policies, or conditions as they existed line 17 on the date the application was deemed complete. line 18 (B)  There is no feasible method to satisfactorily mitigate or line 19 avoid the adverse impact identified pursuant to paragraph (1), other line 20 than the disapproval of the housing development project or the line 21 approval of the project upon the condition that it be developed at line 22 a lower density. line 23 (2)  (A)  If the local agency considers a proposed housing line 24 development project to be inconsistent, not in compliance, or not line 25 in conformity with an applicable plan, program, policy, ordinance, line 26 standard, requirement, or other similar provision as specified in line 27 this subdivision, it shall provide the applicant with written line 28 documentation identifying the provision or provisions, and an line 29 explanation of the reason or reasons it considers the housing line 30 development to be inconsistent, not in compliance, or not in line 31 conformity as follows: line 32 (i)  Within 30 days of the date that the application for the housing line 33 development project is determined to be complete, if the housing line 34 development project contains 150 or fewer housing units. line 35 (ii)  Within 60 days of the date that the application for the line 36 housing development project is determined to be complete, if the line 37 housing development project contains more than 150 units. line 38 (B)  If the local agency fails to provide the required line 39 documentation pursuant to subparagraph (A), the housing line 40 development project shall be deemed consistent, compliant, and 91 SB 330 — 19 — line 1 in conformity with the applicable plan, program, policy, ordinance, line 2 standard, requirement, or other similar provision. line 3 (3)  For purposes of this section, the receipt of a density bonus line 4 pursuant to Section 65915 shall not constitute a valid basis on line 5 which to find a proposed housing development project is line 6 inconsistent, not in compliance, or not in conformity, with an line 7 applicable plan, program, policy, ordinance, standard, requirement, line 8 or other similar provision specified in this subdivision. line 9 (4)  For purposes of this section, a proposed housing development line 10 project is not inconsistent with the applicable zoning standards line 11 and criteria, and shall not require a rezoning, if the housing line 12 development project is consistent with the objective general plan line 13 standards and criteria but the zoning for the project site is line 14 inconsistent with the general plan. If the local agency has complied line 15 with paragraph (2), the local agency may require the proposed line 16 housing development project to comply with the objective line 17 standards and criteria of the zoning which is consistent with the line 18 general plan, however, the standards and criteria shall be applied line 19 to facilitate and accommodate development at the density allowed line 20 on the site by the general plan and proposed by the proposed line 21 housing development project. line 22 (k)  (1)  (A)  (i)  The applicant, a person who would be eligible line 23 to apply for residency in the development or emergency shelter, line 24 or a housing organization may bring an action to enforce this line 25 section. If, in any action brought to enforce this section, a court line 26 finds that any of the following are met, the court shall issue an line 27 order pursuant to clause (ii): line 28 (I)  The local agency, in violation of subdivision (d), disapproved line 29 a housing development project or conditioned its approval in a line 30 manner rendering it infeasible for the development of an emergency line 31 shelter, or housing for very low, low-, or moderate-income line 32 households, including farmworker housing, without making the line 33 findings required by this section or without making findings line 34 supported by a preponderance of the evidence. line 35 (II)  The local agency, in violation of subdivision (j), disapproved line 36 a housing development project complying with applicable, line 37 objective general plan and zoning standards and criteria, or imposed line 38 a condition that the project be developed at a lower density, without line 39 making the findings required by this section or without making line 40 findings supported by a preponderance of the evidence. 91 — 20 — SB 330 line 1 (III)  (ia)  Subject to sub-subclause (ib), the local agency, in line 2 violation of subdivision (o), required or attempted to require a line 3 housing development project to comply with an ordinance, policy, line 4 or standard not adopted and in effect when a preliminary line 5 application was submitted. line 6 (ib)  This subclause shall become inoperative on January 1, 2025. line 7 (ii)  If the court finds that one of the conditions in clause (i) is line 8 met, the court shall issue an order or judgment compelling line 9 compliance with this section within 60 days, including, but not line 10 limited to, an order that the local agency take action on the housing line 11 development project or emergency shelter. The court may issue line 12 an order or judgment directing the local agency to approve the line 13 housing development project or emergency shelter if the court line 14 finds that the local agency acted in bad faith when it disapproved line 15 or conditionally approved the housing development or emergency line 16 shelter in violation of this section. The court shall retain jurisdiction line 17 to ensure that its order or judgment is carried out and shall award line 18 reasonable attorney’s fees and costs of suit to the plaintiff or line 19 petitioner, except under extraordinary circumstances in which the line 20 court finds that awarding fees would not further the purposes of line 21 this section. line 22 (B)  (i)  Upon a determination that the local agency has failed line 23 to comply with the order or judgment compelling compliance with line 24 this section within 60 days issued pursuant to subparagraph (A), line 25 the court shall impose fines on a local agency that has violated this line 26 section and require the local agency to deposit any fine levied line 27 pursuant to this subdivision into a local housing trust fund. The line 28 local agency may elect to instead deposit the fine into the Building line 29 Homes and Jobs Fund, if Senate Bill 2 of the 2017–18 Regular line 30 Session is enacted, or otherwise in the Housing Rehabilitation line 31 Loan Fund. The fine shall be in a minimum amount of ten thousand line 32 dollars ($10,000) per housing unit in the housing development line 33 project on the date the application was deemed complete pursuant line 34 to Section 65943. In determining the amount of fine to impose, line 35 the court shall consider the local agency’s progress in attaining its line 36 target allocation of the regional housing need pursuant to Section line 37 65584 and any prior violations of this section. Fines shall not be line 38 paid out of funds already dedicated to affordable housing, line 39 including, but not limited to, Low and Moderate Income Housing line 40 Asset Funds, funds dedicated to housing for very low, low-, and 91 SB 330 — 21 — line 1 moderate-income households, and federal HOME Investment line 2 Partnerships Program and Community Development Block Grant line 3 Program funds. The local agency shall commit and expend the line 4 money in the local housing trust fund within five years for the sole line 5 purpose of financing newly constructed housing units affordable line 6 to extremely low, very low, or low-income households. After five line 7 years, if the funds have not been expended, the money shall revert line 8 to the state and be deposited in the Building Homes and Jobs Fund, line 9 if Senate Bill 2 of the 2017–18 Regular Session is enacted, or line 10 otherwise in the Housing Rehabilitation Loan Fund, for the sole line 11 purpose of financing newly constructed housing units affordable line 12 to extremely low, very low, or low-income households. line 13 (ii)  If any money derived from a fine imposed pursuant to this line 14 subparagraph is deposited in the Housing Rehabilitation Loan line 15 Fund, then, notwithstanding Section 50661 of the Health and Safety line 16 Code, that money shall be available only upon appropriation by line 17 the Legislature. line 18 (C)  If the court determines that its order or judgment has not line 19 been carried out within 60 days, the court may issue further orders line 20 as provided by law to ensure that the purposes and policies of this line 21 section are fulfilled, including, but not limited to, an order to vacate line 22 the decision of the local agency and to approve the housing line 23 development project, in which case the application for the housing line 24 development project, as proposed by the applicant at the time the line 25 local agency took the initial action determined to be in violation line 26 of this section, along with any standard conditions determined by line 27 the court to be generally imposed by the local agency on similar line 28 projects, shall be deemed to be approved unless the applicant line 29 consents to a different decision or action by the local agency. line 30 (2)  For purposes of this subdivision, “housing organization” line 31 means a trade or industry group whose local members are primarily line 32 engaged in the construction or management of housing units or a line 33 nonprofit organization whose mission includes providing or line 34 advocating for increased access to housing for low-income line 35 households and have filed written or oral comments with the local line 36 agency prior to action on the housing development project. A line 37 housing organization may only file an action pursuant to this line 38 section to challenge the disapproval of a housing development by line 39 a local agency. A housing organization shall be entitled to 91 — 22 — SB 330 line 1 reasonable attorney’s fees and costs if it is the prevailing party in line 2 an action to enforce this section. line 3 (l)  If the court finds that the local agency (1) acted in bad faith line 4 when it disapproved or conditionally approved the housing line 5 development or emergency shelter in violation of this section and line 6 (2) failed to carry out the court’s order or judgment within 60 days line 7 as described in subdivision (k), the court, in addition to any other line 8 remedies provided by this section, shall multiply the fine line 9 determined pursuant to subparagraph (B) of paragraph (1) of line 10 subdivision (k) by a factor of five. For purposes of this section, line 11 “bad faith” includes, but is not limited to, an action that is frivolous line 12 or otherwise entirely without merit. line 13 (m)  Any action brought to enforce the provisions of this section line 14 shall be brought pursuant to Section 1094.5 of the Code of Civil line 15 Procedure, and the local agency shall prepare and certify the record line 16 of proceedings in accordance with subdivision (c) of Section 1094.6 line 17 of the Code of Civil Procedure no later than 30 days after the line 18 petition is served, provided that the cost of preparation of the record line 19 shall be borne by the local agency, unless the petitioner elects to line 20 prepare the record as provided in subdivision (n) of this section. line 21 A petition to enforce the provisions of this section shall be filed line 22 and served no later than 90 days from the later of (1) the effective line 23 date of a decision of the local agency imposing conditions on, line 24 disapproving, or any other final action on a housing development line 25 project or (2) the expiration of the time periods specified in line 26 subparagraph (B) of paragraph (5) of subdivision (h). Upon entry line 27 of the trial court’s order, a party may, in order to obtain appellate line 28 review of the order, file a petition within 20 days after service line 29 upon it of a written notice of the entry of the order, or within such line 30 further time not exceeding an additional 20 days as the trial court line 31 may for good cause allow, or may appeal the judgment or order line 32 of the trial court under Section 904.1 of the Code of Civil line 33 Procedure. If the local agency appeals the judgment of the trial line 34 court, the local agency shall post a bond, in an amount to be line 35 determined by the court, to the benefit of the plaintiff if the plaintiff line 36 is the project applicant. line 37 (n)  In any action, the record of the proceedings before the local line 38 agency shall be filed as expeditiously as possible and, line 39 notwithstanding Section 1094.6 of the Code of Civil Procedure or line 40 subdivision (m) of this section, all or part of the record may be 91 SB 330 — 23 — line 1 prepared (1) by the petitioner with the petition or petitioner’s points line 2 and authorities, (2) by the respondent with respondent’s points and line 3 authorities, (3) after payment of costs by the petitioner, or (4) as line 4 otherwise directed by the court. If the expense of preparing the line 5 record has been borne by the petitioner and the petitioner is the line 6 prevailing party, the expense shall be taxable as costs. line 7 (o)  (1)  Subject to paragraphs (2), (6), and (7), and subdivision line 8 (d) of Section 65941.1, a housing development project shall be line 9 subject only to the preconstruction development ordinances, line 10 policies, and standards adopted and in effect when a preliminary line 11 application including all of the information required by subdivision line 12 (a) of Section 65941.1 was submitted. line 13 (2)  Paragraph (1) shall not prohibit a housing development line 14 project from being subject to preconstruction development line 15 ordinances, policies, and standards adopted after the preliminary line 16 application was submitted pursuant to Section 65941.1 in the line 17 following circumstances: line 18 (A)  In the case of a fee, charge, or other monetary exaction, to line 19 an increase resulting from an automatic annual adjustment based line 20 on an independently published cost index that is referenced in the line 21 ordinance or resolution establishing the fee or other monetary line 22 exaction. line 23 (B)  A preponderance of the evidence in the record establishes line 24 that subjecting the housing development project to an ordinance, line 25 policy, or standard beyond those in effect when a preliminary line 26 application was submitted is necessary to mitigate or avoid a line 27 specific, adverse impact upon the public health or safety, as defined line 28 in subparagraph (A) of paragraph (1) of subdivision (j), and there line 29 is no feasible alternative method to satisfactorily mitigate or avoid line 30 the adverse impact. line 31 (C)  Subjecting the housing development project to an ordinance, line 32 policy, standard, or any other measure, beyond those in effect when line 33 a preliminary application was submitted is necessary to avoid or line 34 substantially lessen an impact of the project under the California line 35 Environmental Quality Act (Division 13 (commencing with Section line 36 21000) of the Public Resources Code). line 37 (D)  The housing development project has not commenced line 38 construction within three two and one-half years following the line 39 date that the project received final approval. For purposes of this line 40 subparagraph, “final approval” means that the housing development 91 — 24 — SB 330 line 1 project has received all necessary approvals to be eligible to apply line 2 for, and obtain, a building permit or permits and either of the line 3 following is met: line 4 (i)  The expiration of all applicable appeal periods, petition line 5 periods, reconsideration periods, or statute of limitations for line 6 challenging that final approval without an appeal, petition, request line 7 for reconsideration, or legal challenge having been filed. line 8 (ii)  If a challenge is filed, that challenge is fully resolved or line 9 settled in favor of the housing development project. line 10 (E)  The housing development project is revised following line 11 submittal of a preliminary application pursuant to Section 65941.1 line 12 such that the number of residential units or square footage of line 13 construction changes by 20 percent or more, exclusive of any line 14 increase resulting from the receipt of a density bonus, incentive, line 15 concession, waiver, or similar provision. For purposes of this line 16 subdivision, “square footage of construction” means the building line 17 area, as defined by the California Building Standards Code (Title line 18 24 of the California Code of Regulations). line 19 (3)  This subdivision does not prevent a local agency from line 20 subjecting the additional units or square footage of construction line 21 that result from project revisions occurring after a preliminary line 22 application is submitted pursuant to Section 65941.1 to the line 23 ordinances, policies, and standards adopted and in effect when the line 24 complete initial application was submitted. line 25 (4)  For purposes of this subdivision, “ordinances, policies, and line 26 standards” includes general plan, community plan, specific plan, line 27 zoning, design review standards and criteria, subdivision standards line 28 and criteria, and any other rules, regulations, requirements, and line 29 policies of a local agency, as defined in Section 66000, including line 30 those relating to development impact fees, capacity or connection line 31 fees or charges, permit or processing fees, and other exactions. line 32 (5)  This subdivision shall not be construed in a manner that line 33 would lessen the restrictions imposed on a local agency, or lessen line 34 the protections afforded to a housing development project, that are line 35 established by any other law, including any other part of this line 36 section. line 37 (6)  This subdivision shall not restrict the authority of a public line 38 agency or local agency to require mitigation measures to lessen line 39 the impacts of a housing development project under the California 91 SB 330 — 25 — line 1 Environmental Quality Act (Division 13 (commencing with Section line 2 21000) of the Public Resources Code). line 3 (7)  This subdivision shall become inoperative on January 1, line 4 2025. line 5 (p)  This section shall be known, and may be cited, as the line 6 Housing Accountability Act. line 7 SEC. 4. Section 65905.5 is added to the Government Code, to line 8 read: line 9 65905.5. (a)  Notwithstanding any other law, if a proposed line 10 housing development project complies with the applicable, line 11 objective general plan and zoning standards in effect at the time line 12 an application is deemed complete, a city, county, or city and line 13 county shall not conduct more than five hearings pursuant to line 14 Section 65905, or any other law, ordinance, or regulation requiring line 15 a public hearing in connection with the approval of that housing line 16 development project. If the city, county, or city and county line 17 continues a hearing subject to this section to another date, the line 18 continued hearing shall count as one of the five hearings allowed line 19 under this section. The city, county, or city and county shall line 20 consider and either approve or disapprove the application at any line 21 of the five hearings allowed under this section consistent with the line 22 applicable timelines under the Permit Streamlining Act (Chapter line 23 4.5 (commencing with Section 65920)). line 24 (b)  For purposes of this section: line 25 (1)  “Deemed complete” means that the application has met all line 26 of the requirements specified in the relevant list compiled pursuant line 27 to Section 65940 that was available at the time when the application line 28 was submitted. line 29 (2)  “Hearing” includes any public hearing, workshop, or similar line 30 meeting conducted by the city or county with respect to the housing line 31 development project, whether by the legislative body of the city line 32 or county, the planning agency established pursuant to Section line 33 65100, or any other agency, department, board, commission, or line 34 any other designated hearing officer or body of the city or county, line 35 or any committee or subcommittee thereof. “Hearing” does not line 36 include a hearing to review a legislative approval required for a line 37 proposed housing development project, including, but not limited line 38 to, a general plan amendment, a specific plan adoption or line 39 amendment, or a zoning amendment, or any hearing arising from 91 — 26 — SB 330 line 1 a timely appeal of the approval or disapproval of a legislative line 2 approval. line 3 (3)  “Housing development project” has the same meaning as line 4 defined in paragraph (2) of subdivision (h) of Section 65589.5. line 5 (c)  (1)  For purposes of this section, a housing development line 6 project shall be deemed consistent, compliant, and in conformity line 7 with an applicable plan, program, policy, ordinance, standard, line 8 requirement, or other similar provision if there is substantial line 9 evidence that would allow a reasonable person to conclude that line 10 the housing development project is consistent, compliant, or in line 11 conformity. line 12 (2)  A proposed housing development project is not inconsistent line 13 with the applicable zoning standards and criteria, and shall not line 14 require a rezoning, if the housing development project is consistent line 15 with the objective general plan standards and criteria, but the line 16 zoning for the project site is inconsistent with the general plan. If line 17 the local agency complies with the written documentation line 18 requirements of paragraph (2) of subdivision (j) of Section 65589.5, line 19 the local agency may require the proposed housing development line 20 project to comply with the objective standards and criteria of the line 21 zoning that is consistent with the general plan; however, the line 22 standards and criteria shall be applied to facilitate and line 23 accommodate development at the density allowed on the site by line 24 the general plan and proposed by the proposed housing line 25 development project. line 26 (d)  Nothing in this section supersedes, limits, or otherwise line 27 modifies the requirements of, or the standards of review pursuant line 28 to, Division 13 (commencing with Section 21000) of the Public line 29 Resources Code. line 30 (e)  This section shall remain in effect only until January 1, 2025, line 31 and as of that date is repealed. line 32 SEC. 5. Section 65913.3 is added to the Government Code, to line 33 read: line 34 65913.3. (a)  As used in this section: line 35 (1)  (A)  Except as otherwise provided in subparagraph (B), line 36 “affected city” means a city or city and county, including a charter line 37 city, for which the Department of Housing and Community line 38 Development determines, pursuant to subdivision (f), that the line 39 average of both of the following amounts is greater than zero: 91 SB 330 — 27 — line 1 (i)  The percentage by which the city’s average rate of rent line 2 differed from 130 percent of the national median rent in 2017, line 3 based on the federal 2013–2017 American Community Survey line 4 5-year Estimates. line 5 (ii)  The percentage by which the vacancy rate for residential line 6 rental units differed from the national vacancy rate, based on the line 7 federal 2013–2017 American Community Survey 5-year Estimates. line 8 (B)  Notwithstanding subparagraph (A), “affected city” does not line 9 include any city that has a population of 5,000 or less and is not line 10 located within an urban core. line 11 (2)  “Affected county” means the unincorporated portions of a line 12 county that are wholly within the boundaries of an urbanized area line 13 or urban cluster, as designated by the United States Census Bureau, line 14 for which the Department of Housing and Community line 15 Development determines, pursuant to subdivision (f), that the line 16 average of both of the following amounts is greater than zero: line 17 (A)  The percentage by which the average rate of rent for line 18 residential uses in the unincorporated portions of the county that line 19 are wholly within the boundaries of an urbanized area or urban line 20 cluster, as designated by the United States Census Bureau, differed line 21 from 130 percent of the national median rent in 2017, based on line 22 the federal 2013-2017 American Community Survey 5-year line 23 Estimates. line 24 (B)  The percentage by which the vacancy rate for residential line 25 rental units in the unincorporated portions of the county that are line 26 wholly within the boundaries of an urbanized area or urban cluster, line 27 as designated by the United States Census Bureau, differed from line 28 the national vacancy rate, based on the federal 2013-2017 American line 29 Community Survey 5-year Estimates. line 30 (3)  Notwithstanding any other law, for purposes of any action line 31 that this section prohibits an affected county or an affected city line 32 from doing, “affected county” and “affected city” includes the line 33 electorate of the affected county or affected city, as applicable, line 34 exercising its local initiative or referendum power with respect to line 35 any act that is subject to that power by other law, whether that line 36 power is derived from the California Constitution, statute, or the line 37 charter or ordinances of the affected county or affected city. line 38 (4)  “Housing development project” has the same meaning as line 39 defined in paragraph (2) of subdivision (h) of Section 65589.5. 91 — 28 — SB 330 line 1 (b)  Notwithstanding any other law, with respect to land where line 2 housing is an allowable use on or after January 1, 2018, an affected line 3 county or an affected city, as applicable, shall not impose any new, line 4 or increase or enforce any existing, requirement that a proposed line 5 housing development include parking, as applicable: line 6 (1)  A minimum parking requirement if the proposed housing line 7 development is within one-quarter mile of a rail stop that is a major line 8 transit stop, as defined in subdivision (b) of Section 21155 of the line 9 Public Resources Code, there is unobstructed access to the major line 10 transit stop from the proposed housing development, and the line 11 proposed housing development is in an affected city that meets line 12 either of the following: line 13 (A)  The affected city is located in a county with a population line 14 of greater than 700,000. line 15 (B)  The affected city has a population of 100,000 or greater and line 16 is located in a county with a population of 700,000 or less. line 17 (2)  A minimum parking requirement in excess of 0.5 spaces per line 18 unit in affected cities that are not subject to paragraph (1). line 19 (c)  A proposed housing development project is not inconsistent line 20 with the applicable zoning standards and criteria, and shall not line 21 require a rezoning, if the housing development project is consistent line 22 with the objective general plan standards and criteria in effect as line 23 of January 1, 2018, but the zoning for the project site is inconsistent line 24 with the general plan. If the local agency complies with the written line 25 documentation requirements of paragraph (2) of subdivision (j) of line 26 Section 65589.5, the local agency may require the proposed line 27 housing development project to comply with the objective line 28 standards and criteria of the zoning that is consistent with the line 29 general plan, however, the standards and criteria shall be applied line 30 to facilitate and accommodate development at the density allowed line 31 on the site by the general plan and proposed by the proposed line 32 housing development project. line 33 (d)  If the affected county or affected city approves an application line 34 for a conditional use permit for a proposed housing development line 35 project and that project would have been eligible for a higher line 36 density under the affected county’s or affected city’s general plan line 37 land use designation and zoning ordinances as in effect as of line 38 January 1, 2018, the affected county or affected city shall allow line 39 the project at that higher density. 91 SB 330 — 29 — line 1 (e)  Notwithstanding any other provision of this section, both of line 2 the following shall apply: line 3 (1)  An affected city or an affected county shall not approve a line 4 housing development project subject to this section that will require line 5 the demolition of residential dwelling units unless both of the line 6 following requirements are met: line 7 (A)  The project will create at least as many residential dwelling line 8 units as will be demolished. line 9 (B)  The affected city or affected county is not prohibited from line 10 approving the demolition of the residential dwelling units pursuant line 11 to any local ordinance or other law. line 12 (2)  An affected city or an affected county shall not approve a line 13 housing development project subject to this section that will require line 14 the demolition of occupied or vacant protected units, unless all of line 15 the following apply: line 16 (A)  (i)  The project will replace all existing or demolished line 17 protected units. line 18 (ii)  Any protected units replaced pursuant to this subparagraph line 19 shall be considered in determining whether the housing line 20 development project satisfies the requirements of Section 65915 line 21 or a locally adopted requirement that requires, as a condition of line 22 the development of residential rental units, that the project provide line 23 a certain percentage of residential rental units affordable to, and line 24 occupied by, households with incomes that do not exceed the limits line 25 for moderate-income, lower income, very low income, or extremely line 26 low income households, as specified in Sections 50079.5, 50093, line 27 50105, and 50106 of the Health and Safety Code. line 28 (iii)  Notwithstanding clause (i), a protected unit that is or was, line 29 within the five-year period preceding the application, subject to a line 30 form of rent or price control through a local government’s valid line 31 exercise of its police power, and that is or was occupied by persons line 32 or families above lower income, the affected city or affected county line 33 may do either of the following: line 34 (I)  Require that the replacement units be made available at line 35 affordable rent or affordable housing cost to, and occupied by, line 36 low-income persons or families. If the replacement units will be line 37 rental dwelling units, these units shall be subject to a recorded line 38 affordability restriction for at least 55 years. line 39 (II)  Require that the units be replaced in compliance with the line 40 jurisdiction‘s rent or price control ordinance, provided that each 91 — 30 — SB 330 line 1 unit is replaced. Unless otherwise required by the affected city or line 2 affected county‘s rent or price control ordinance, these units shall line 3 not be subject to a recorded affordability restriction. line 4 (B)  The housing development project will include at least as line 5 many residential dwelling units as the greatest number of line 6 residential dwelling units that existed on the project site within the line 7 last five years, unless the project will be 100 percent affordable, line 8 exclusive of a managers unit or units, to lower income or very line 9 low-income households. line 10 (C)  Any existing residents will be allowed to occupy their units line 11 until six months before the start of construction activities with line 12 proper notice, subject to Chapter 16 (commencing with Section line 13 7260) of Division 7 of Title 1. line 14 (D)  The developer agrees to provide both of the following to line 15 the occupants of any protected units: line 16 (i)  Relocation benefits, to the occupants of those affordable line 17 residential rental units, subject to Chapter 16 (commencing with line 18 Section 7260) of Division 7 of Title 1. line 19 (ii)  A right of first refusal for a comparable unit available in the line 20 new housing development affordable to the household at an line 21 affordable rent, as defined in Section 50053 of the Health and line 22 Safety Code, or an affordable housing cost, as defined in 50052.5. line 23 (E)  The affected city or affected county is not prohibited from line 24 approving the demolition of the residential dwelling units pursuant line 25 to any local ordinance or other law. line 26 (F)  For purposes of this paragraph: line 27 (i)  “Equivalent size” means that the replacement units contain line 28 at least the same total number of bedrooms as the units being line 29 replaced. line 30 (ii)  “Protected units” means any of the following: line 31 (I)  Residential dwelling units that are or were subject to a line 32 recorded covenant, ordinance, or law that restricts rents to levels line 33 affordable to persons and families of lower or very low income line 34 within the past five years. line 35 (II)  Residential dwelling units that are or were subject to any line 36 form of rent or price control through a public entity’s valid exercise line 37 of its police power within the past five years. line 38 (III)  Residential dwelling units that are or were occupied by line 39 lower or very low income households within the past five years. 91 SB 330 — 31 — line 1 (IV)  Residential dwelling units that were withdrawn from rent line 2 or lease in accordance with Chapter 12.75 (commencing with line 3 Section 7060) of Division 7 of Title 1 within the past ten years. line 4 (iii)  “Replace” shall have the same meaning as provided in line 5 subparagraph (B) of paragraph (3) or subdivision (c) of Section line 6 65915. line 7 (3)  This subdivision shall not supersede any provision of a line 8 locally adopted ordinance that places greater restrictions on the line 9 demolition of residential dwelling units or the subdivision of line 10 residential rental units, or that requires greater relocation assistance line 11 to displaced households. line 12 (f)  The Department of Housing and Community Development line 13 shall determine those cities and counties in this state that are line 14 affected cities and affected counties, in accordance with subdivision line 15 (a), by June 30, 2020. The department’s determination shall remain line 16 valid until January 1, 2025. line 17 (g)  (1)  Except as provided in paragraphs (3) and (4) and in line 18 subdivision (h), this section shall prevail over any conflicting line 19 provision of this title or other law regulating housing development line 20 in this state to the extent that this section more fully advances the line 21 intent specified in paragraph (2). line 22 (2)  It is the intent of the Legislature that this section be construed line 23 so as to maximize the development of housing within this state. line 24 Any exception to the requirements of this section, including an line 25 exception for the health and safety of occupants of a housing line 26 development project, shall be construed narrowly. line 27 (3)  This section shall not be construed as prohibiting planning line 28 standards that allow greater density in or reduce the costs to a line 29 housing development project or mitigation measures that are line 30 necessary to comply with the California Environmental Quality line 31 Act (Division 13 (commencing with Section 21000) of the Public line 32 Resources Code). line 33 (4)  This section shall not apply to a housing development project line 34 located within a very high fire hazard severity zone. For purposes line 35 of this paragraph, “very high fire hazard severity zone” has the line 36 same meaning as provided in Section 51177. line 37 (h)  (1)  Nothing in this section supersedes, limits, or otherwise line 38 modifies the requirements of, or the standards of review pursuant line 39 to, Division 13 (commencing with Section 21000) of the Public line 40 Resources Code. 91 — 32 — SB 330 line 1 (2)  Nothing in this section supersedes, limits, or otherwise line 2 modifies the requirements of the California Coastal Act of 1976 line 3 (Division 20 (commencing with Section 30000) of the Public line 4 Resources Code). line 5 (i)    This section shall remain in effect only until January 1, line 6 2025, and as of that date is repealed. line 7 SEC. 6. line 8 SEC. 5. Section 65913.10 is added to the Government Code, line 9 to read: line 10 65913.10. (a)  For purposes of any state or local law, ordinance, line 11 or regulation that requires the city or county to determine whether line 12 the site of a proposed housing development project is a historic line 13 site, the city or county shall make that determination at the time line 14 the application for the housing development project is deemed line 15 complete. A determination as to whether a parcel of property is a line 16 historic site shall remain valid during the pendency of the housing line 17 development project for which the application was made unless line 18 any archaeological, paleontological, or tribal cultural resources line 19 are encountered during any grading, site disturbance, or building line 20 alteration activities. line 21 (b)  For purposes of this section: line 22 (1)  “Deemed complete” means that the application has met all line 23 of the requirements specified in the relevant list compiled pursuant line 24 to Section 65940 that was available at the time when the application line 25 was submitted. line 26 (2)  “Housing development project” has the same meaning as line 27 defined in paragraph (2) of subdivision (h) of Section 65589.5. line 28 (c)  (1)  Nothing in this section supersedes, limits, or otherwise line 29 modifies the requirements of, or the standards of review pursuant line 30 to, Division 13 (commencing with Section 21000) of the Public line 31 Resources Code. line 32 (2)  Nothing in this section supersedes, limits, or otherwise line 33 modifies the requirements of the California Coastal Act of 1976 line 34 (Division 20 (commencing with Section 30000) of the Public line 35 Resources Code). line 36 (d)  This section shall remain in effect only until January 1, 2025, line 37 and as of that date is repealed. line 38 SEC. 7. line 39 SEC. 6. Section 65941.1 is added to the Government Code, to line 40 read: 91 SB 330 — 33 — line 1 65941.1. (a)  An applicant for a housing development project, line 2 as defined in paragraph (2) of subdivision (h) of Section 65589.5, line 3 shall be deemed to have submitted a preliminary application upon line 4 providing all of the following information about the proposed line 5 project to the city, county, or city and county from which approval line 6 for the project is being sought and upon payment of the permit line 7 processing fee: line 8 (1)  The specific location, including parcel numbers, a legal line 9 description, and site address, if applicable. line 10 (2)  The existing uses on the project site and identification of line 11 major physical alterations to the property on which the project is line 12 to be located. line 13 (3)  A site plan showing the location on the property, elevations line 14 showing design, color, and material, and the massing, height, and line 15 approximate square footage, of each building that is to be occupied. line 16 (4)  The proposed land uses by number of units and square feet line 17 of residential and nonresidential development using the categories line 18 in the applicable zoning ordinance. line 19 (5)  The proposed number of parking spaces. line 20 (6)  Any proposed point sources of air or water pollutants. line 21 (7)  Any species of special concern known to occur on the line 22 property. line 23 (8)  Any portion of the property located within any of the line 24 following: line 25 (A)  A very high fire hazard severity zone, as determined by the line 26 Department of Forestry and Fire Protection pursuant to Section line 27 51178. line 28 (B)  Wetlands, as defined in the United States Fish and Wildlife line 29 Service Manual, Part 660 FW 2 (June 21, 1993). line 30 (C)  A hazardous waste site that is listed pursuant to Section line 31 65962.5 or a hazardous waste site designated by the Department line 32 of Toxic Substances Control pursuant to Section 25356 of the line 33 Health and Safety Code. line 34 (D)  A special flood hazard area subject to inundation by the 1 line 35 percent annual chance flood (100-year flood) as determined by line 36 the Federal Emergency Management Agency in any official maps line 37 published by the Federal Emergency Management Agency. line 38 (E)  A delineated earthquake fault zone as determined by the line 39 State Geologist in any official maps published by the State line 40 Geologist, unless the development complies with applicable seismic 91 — 34 — SB 330 line 1 protection building code standards adopted by the California line 2 Building Standards Commission under the California Building line 3 Standards Law (Part 2.5 (commencing with Section 18901) of line 4 Division 13 of the Health and Safety Code), and by any local line 5 building department under Chapter 12.2 (commencing with Section line 6 8875) of Division 1 of Title 2. line 7 (9)  Any historic or cultural resources known to exist on the line 8 property. line 9 (10)  The number of proposed below market rate units and their line 10 affordability levels. line 11 (11)  The number of bonus units and any incentives, concessions, line 12 waivers, or parking reductions requested pursuant to Section 65915. line 13 (12)  Whether any approvals under the Subdivision Map Act, line 14 including, but not limited to, a parcel map, a tentative map, or a line 15 condominium map, are being requested. line 16 (13)  The applicant’s contact information and, if the applicant line 17 does not own the property, consent from the property owner to line 18 submit the application. line 19 (b)  (1)  Each local agency shall compile a checklist and line 20 application form that applicants for housing development projects line 21 may use for the purpose of satisfying the requirements for submittal line 22 of a preliminary application. line 23 (2)  The Department of Housing and Community Development line 24 shall adopt a standardized form that applicants for housing line 25 development projects may use for the purpose of satisfying the line 26 requirements for submittal of a preliminary application if a local line 27 agency has not developed its own application form pursuant to line 28 paragraph (1). Adoption of the standardized form shall not be line 29 subject to Chapter 3.5 (commencing with Section 11340) of Part line 30 1 of Division 3 of Title 2 of the Government Code. line 31 (3)  A checklist or form shall not require or request any line 32 information beyond that expressly identified in subdivision (a). line 33 (c)  After submittal of all of the information required by line 34 subdivision (a), if the development proponent revises the project line 35 such that the number of residential units or square footage of line 36 construction changes by 20 percent or more, exclusive of any line 37 increase resulting from the receipt of a density bonus, incentive, line 38 concession, waiver, or similar provision, the housing development line 39 project shall not be deemed to have submitted a preliminary line 40 application that satisfies this section until the development 91 SB 330 — 35 — line 1 proponent resubmits the information required by subdivision (a) line 2 so that it reflects the revisions. For purposes of this subdivision, line 3 “square footage of construction” means the building area, as line 4 defined by the California Building Standards Code (Title 24 of the line 5 California Code of Regulations). line 6 (d)  (1)  Within 180 calendar days after submitting a preliminary line 7 application to a city, county, or city and county, the development line 8 proponent shall submit an application for a development project line 9 that includes all of the information required to process the line 10 development application consistent with Sections 65940, 65941, line 11 and 65941.5. line 12 (2)  If the public agency determines that the application for the line 13 development project is not complete pursuant to Section 65943, line 14 the development proponent shall submit the specific information line 15 needed to complete the application within 90 days of receiving the line 16 agency’s written identification of the necessary information. If the line 17 development proponent does not submit this information within line 18 the 90-day period, then the preliminary application shall expire line 19 and have no further force or effect. line 20 (3)  This section shall not require an affirmative determination line 21 by a city, county, or city and county regarding the completeness line 22 of a preliminary application or a development application for line 23 purposes of compliance with this section. line 24 (e)  This section shall remain in effect only until January 1, 2025, line 25 and as of that date is repealed. line 26 SEC. 8. line 27 SEC. 7. Section 65943 of the Government Code is amended line 28 to read: line 29 65943. (a)  Not later than 30 calendar days after any public line 30 agency has received an application for a development project, the line 31 agency shall determine in writing whether the application is line 32 complete and shall immediately transmit the determination to the line 33 applicant for the development project. If the application is line 34 determined to be incomplete, the lead agency shall provide the line 35 applicant with an exhaustive list of items that were not complete. line 36 That list shall be limited to those items actually required on the line 37 lead agency’s submittal requirement checklist. In any subsequent line 38 review of the application determined to be incomplete, the local line 39 agency shall not request the applicant to provide any new line 40 information that was not stated in the initial list of items that were 91 — 36 — SB 330 line 1 not complete. If the written determination is not made within 30 line 2 days after receipt of the application, and the application includes line 3 a statement that it is an application for a development permit, the line 4 application shall be deemed complete for purposes of this chapter. line 5 Upon receipt of any resubmittal of the application, a new 30-day line 6 period shall begin, during which the public agency shall determine line 7 the completeness of the application. If the application is determined line 8 not to be complete, the agency’s determination shall specify those line 9 parts of the application which are incomplete and shall indicate line 10 the manner in which they can be made complete, including a list line 11 and thorough description of the specific information needed to line 12 complete the application. The applicant shall submit materials to line 13 the public agency in response to the list and description. line 14 (b)  Not later than 30 calendar days after receipt of the submitted line 15 materials described in subdivision (a), the public agency shall line 16 determine in writing whether the application as supplemented or line 17 amended by the submitted materials is complete and shall line 18 immediately transmit that determination to the applicant. In making line 19 this determination, the public agency is limited to determining line 20 whether the application as supplemented or amended includes the line 21 information required by the list and a thorough description of the line 22 specific information needed to complete the application required line 23 by subdivision (a). If the written determination is not made within line 24 that 30-day period, the application together with the submitted line 25 materials shall be deemed complete for purposes of this chapter. line 26 (c)  If the application together with the submitted materials are line 27 determined not to be complete pursuant to subdivision (b), the line 28 public agency shall provide a process for the applicant to appeal line 29 that decision in writing to the governing body of the agency or, if line 30 there is no governing body, to the director of the agency, as line 31 provided by that agency. A city or county shall provide that the line 32 right of appeal is to the governing body or, at their option, the line 33 planning commission, or both. line 34 There shall be a final written determination by the agency on line 35 the appeal not later than 60 calendar days after receipt of the line 36 applicant’s written appeal. The fact that an appeal is permitted to line 37 both the planning commission and to the governing body does not line 38 extend the 60-day period. Notwithstanding a decision pursuant to line 39 subdivision (b) that the application and submitted materials are line 40 not complete, if the final written determination on the appeal is 91 SB 330 — 37 — line 1 not made within that 60-day period, the application with the line 2 submitted materials shall be deemed complete for the purposes of line 3 this chapter. line 4 (d)  Nothing in this section precludes an applicant and a public line 5 agency from mutually agreeing to an extension of any time limit line 6 provided by this section. line 7 (e)  A public agency may charge applicants a fee not to exceed line 8 the amount reasonably necessary to provide the service required line 9 by this section. If a fee is charged pursuant to this section, the fee line 10 shall be collected as part of the application fee charged for the line 11 development permit. line 12 (f)  Each city and each county shall make copies of any list line 13 compiled pursuant to Section 65940 with respect to information line 14 required from an applicant for a housing development project, as line 15 that term is defined in paragraph (2) of subdivision (h) of Section line 16 65589.5, available both (1) in writing to those persons to whom line 17 the agency is required to make information available under line 18 subdivision (a) of that section, and (2) publicly available on the line 19 internet website of the city or county. line 20 (g)  This section shall remain in effect only until January 1, 2025, line 21 and as of that date is repealed. line 22 SEC. 9. line 23 SEC. 8. Section 65943 is added to the Government Code, to line 24 read: line 25 65943. (a)  Not later than 30 calendar days after any public line 26 agency has received an application for a development project, the line 27 agency shall determine in writing whether the application is line 28 complete and shall immediately transmit the determination to the line 29 applicant for the development project. If the written determination line 30 is not made within 30 days after receipt of the application, and the line 31 application includes a statement that it is an application for a line 32 development permit, the application shall be deemed complete for line 33 purposes of this chapter. Upon receipt of any resubmittal of the line 34 application, a new 30-day period shall begin, during which the line 35 public agency shall determine the completeness of the application. line 36 If the application is determined not to be complete, the agency’s line 37 determination shall specify those parts of the application which line 38 are incomplete and shall indicate the manner in which they can be line 39 made complete, including a list and thorough description of the line 40 specific information needed to complete the application. The 91 — 38 — SB 330 line 1 applicant shall submit materials to the public agency in response line 2 to the list and description. line 3 (b)  Not later than 30 calendar days after receipt of the submitted line 4 materials, the public agency shall determine in writing whether line 5 they are complete and shall immediately transmit that determination line 6 to the applicant. If the written determination is not made within line 7 that 30-day period, the application together with the submitted line 8 materials shall be deemed complete for purposes of this chapter. line 9 (c)  If the application together with the submitted materials are line 10 determined not to be complete pursuant to subdivision (b), the line 11 public agency shall provide a process for the applicant to appeal line 12 that decision in writing to the governing body of the agency or, if line 13 there is no governing body, to the director of the agency, as line 14 provided by that agency. A city or county shall provide that the line 15 right of appeal is to the governing body or, at their option, the line 16 planning commission, or both. line 17 There shall be a final written determination by the agency on line 18 the appeal not later than 60 calendar days after receipt of the line 19 applicant’s written appeal. The fact that an appeal is permitted to line 20 both the planning commission and to the governing body does not line 21 extend the 60-day period. Notwithstanding a decision pursuant to line 22 subdivision (b) that the application and submitted materials are line 23 not complete, if the final written determination on the appeal is line 24 not made within that 60-day period, the application with the line 25 submitted materials shall be deemed complete for the purposes of line 26 this chapter. line 27 (d)  Nothing in this section precludes an applicant and a public line 28 agency from mutually agreeing to an extension of any time limit line 29 provided by this section. line 30 (e)  A public agency may charge applicants a fee not to exceed line 31 the amount reasonably necessary to provide the service required line 32 by this section. If a fee is charged pursuant to this section, the fee line 33 shall be collected as part of the application fee charged for the line 34 development permit. line 35 (f)  This section shall become operative on January 1, 2025. line 36 SEC. 10. line 37 SEC. 9. Section 65950 of the Government Code is amended line 38 to read: 91 SB 330 — 39 — line 1 65950. (a)  A public agency that is the lead agency for a line 2 development project shall approve or disapprove the project within line 3 whichever of the following periods is applicable: line 4 (1)  One hundred eighty days from the date of certification by line 5 the lead agency of the environmental impact report, if an line 6 environmental impact report is prepared pursuant to Section 21100 line 7 or 21151 of the Public Resources Code for the development project. line 8 (2)  Ninety days from the date of certification by the lead agency line 9 of the environmental impact report, if an environmental impact line 10 report is prepared pursuant to Section 21100 or 21151 of the Public line 11 Resources Code for a development project defined in subdivision line 12 (c). line 13 (3)  Sixty days from the date of certification by the lead agency line 14 of the environmental impact report, if an environmental impact line 15 report is prepared pursuant to Section 21100 or 21151 of the Public line 16 Resources Code for a development project defined in subdivision line 17 (c) and all of the following conditions are met: line 18 (A)  At least 49 percent of the units in the development project line 19 are affordable to very low or low-income households, as defined line 20 by Sections 50105 and 50079.5 of the Health and Safety Code, line 21 respectively. Rents for the lower income units shall be set at an line 22 affordable rent, as that term is defined in Section 50053 of the line 23 Health and Safety Code, for at least 30 years. Owner-occupied line 24 units shall be available at an affordable housing cost, as that term line 25 is defined in Section 50052.5 of the Health and Safety Code. line 26 (B)  Prior to the application being deemed complete for the line 27 development project pursuant to Article 3 (commencing with line 28 Section 65940), the lead agency received written notice from the line 29 project applicant that an application has been made or will be made line 30 for an allocation or commitment of financing, tax credits, bond line 31 authority, or other financial assistance from a public agency or line 32 federal agency, and the notice specifies the financial assistance line 33 that has been applied for or will be applied for and the deadline line 34 for application for that assistance, the requirement that one of the line 35 approvals of the development project by the lead agency is a line 36 prerequisite to the application for or approval of the application line 37 for financial assistance, and that the financial assistance is line 38 necessary for the project to be affordable as required pursuant to line 39 subparagraph (A). 91 — 40 — SB 330 line 1 (C)  There is confirmation that the application has been made line 2 to the public agency or federal agency prior to certification of the line 3 environmental impact report. line 4 (4)  Sixty days from the date of adoption by the lead agency of line 5 the negative declaration, if a negative declaration is completed and line 6 adopted for the development project. line 7 (5)  Sixty days from the determination by the lead agency that line 8 the project is exempt from the California Environmental Quality line 9 Act (Division 13 (commencing with Section 21000) of the Public line 10 Resources Code), if the project is exempt from that act. line 11 (b)  This section does not preclude a project applicant and a line 12 public agency from mutually agreeing in writing to an extension line 13 of any time limit provided by this section pursuant to Section line 14 65957. line 15 (c)  For purposes of paragraphs (2) and (3) of subdivision (a) line 16 and Section 65952, “development project” means a housing line 17 development project, as that term is defined in paragraph (2) of line 18 subdivision (h) of Section 65589.5. line 19 (d)  For purposes of this section, “lead agency” and “negative line 20 declaration” have the same meaning as defined in Sections 21067 line 21 and 21064 of the Public Resources Code, respectively. line 22 (e)  This section shall remain in effect only until January 1, 2025, line 23 and as of that date is repealed. line 24 SEC. 11. line 25 SEC. 10. Section 65950 is added to the Government Code, to line 26 read: line 27 65950. (a)  A public agency that is the lead agency for a line 28 development project shall approve or disapprove the project within line 29 whichever of the following periods is applicable: line 30 (1)  One hundred eighty days from the date of certification by line 31 the lead agency of the environmental impact report, if an line 32 environmental impact report is prepared pursuant to Section 21100 line 33 or 21151 of the Public Resources Code for the development project. line 34 (2)  One hundred twenty days from the date of certification by line 35 the lead agency of the environmental impact report, if an line 36 environmental impact report is prepared pursuant to Section 21100 line 37 or 21151 of the Public Resources Code for a development project line 38 defined in subdivision (c). line 39 (3)  Ninety days from the date of certification by the lead agency line 40 of the environmental impact report, if an environmental impact 91 SB 330 — 41 — line 1 report is prepared pursuant to Section 21100 or 21151 of the Public line 2 Resources Code for a development project defined in subdivision line 3 (c) and all of the following conditions are met: line 4 (A)  At least 49 percent of the units in the development project line 5 are affordable to very low or low-income households, as defined line 6 by Sections 50105 and 50079.5 of the Health and Safety Code, line 7 respectively. Rents for the lower income units shall be set at an line 8 affordable rent, as that term is defined in Section 50053 of the line 9 Health and Safety Code, for at least 30 years. Owner-occupied line 10 units shall be available at an affordable housing cost, as that term line 11 is defined in Section 50052.5 of the Health and Safety Code. line 12 (B)  Prior to the application being deemed complete for the line 13 development project pursuant to Article 3 (commencing with line 14 Section 65940), the lead agency received written notice from the line 15 project applicant that an application has been made or will be made line 16 for an allocation or commitment of financing, tax credits, bond line 17 authority, or other financial assistance from a public agency or line 18 federal agency, and the notice specifies the financial assistance line 19 that has been applied for or will be applied for and the deadline line 20 for application for that assistance, the requirement that one of the line 21 approvals of the development project by the lead agency is a line 22 prerequisite to the application for or approval of the application line 23 for financial assistance, and that the financial assistance is line 24 necessary for the project to be affordable as required pursuant to line 25 subparagraph (A). line 26 (C)  There is confirmation that the application has been made line 27 to the public agency or federal agency prior to certification of the line 28 environmental impact report. line 29 (4)  Sixty days from the date of adoption by the lead agency of line 30 the negative declaration, if a negative declaration is completed and line 31 adopted for the development project. line 32 (5)  Sixty days from the determination by the lead agency that line 33 the project is exempt from the California Environmental Quality line 34 Act (Division 13 (commencing with Section 21000) of the Public line 35 Resources Code), if the project is exempt from that act. line 36 (b)  This section does not preclude a project applicant and a line 37 public agency from mutually agreeing in writing to an extension line 38 of any time limit provided by this section pursuant to Section line 39 65957. 91 — 42 — SB 330 line 1 (c)  For purposes of paragraphs (2) and (3) of subdivision (a) line 2 and Section 65952, “development project” means a use consisting line 3 of either of the following: line 4 (1)  Residential units only. line 5 (2)  Mixed-use developments consisting of residential and line 6 nonresidential uses in which the nonresidential uses are less than line 7 50 percent of the total square footage of the development and are line 8 limited to neighborhood commercial uses and to the first floor of line 9 buildings that are two or more stories. As used in this paragraph, line 10 “neighborhood commercial” means small-scale general or specialty line 11 stores that furnish goods and services primarily to residents of the line 12 neighborhood. line 13 (d)  For purposes of this section, “lead agency” and “negative line 14 declaration” have the same meaning as defined in Sections 21067 line 15 and 21064 of the Public Resources Code, respectively. line 16 (e)  This section shall become operative on January 1, 2025. line 17 SEC. 12. line 18 SEC. 11. Section 65950.2 is added to the Government Code, line 19 to read: line 20 65950.2. (a)  Notwithstanding any other law, the deadlines line 21 specified in this article are mandatory. line 22 (b)  This section shall remain in effect only until January 1, 2025, line 23 and as of that date is repealed. line 24 SEC. 13. line 25 SEC. 12. Chapter 12 (commencing with Section 66300) is line 26 added to Division 1 of Title 7 of the Government Code, to read: line 27 line 28 Chapter 12. Housing Crisis Act of 2019 line 29 line 30 66300. (a)  As used in this section: line 31 (1)  (A)  Except as otherwise provided in subparagraph (B), line 32 “affected city” means a city, including a charter city, for which line 33 the Department of Housing and Community Development line 34 determines, pursuant to subdivision (d), (e), that the average of line 35 both of the following amounts is greater than zero: line 36 (i)  The percentage by which the city’s average rate of rent line 37 differed from 130 percent of the national median rent in 2017, line 38 based on the federal 2013-2017 American Community Survey line 39 5-year Estimates. 91 SB 330 — 43 — line 1 (ii)  The percentage by which the vacancy rate for residential line 2 rental units differed from the national vacancy rate, based on the line 3 federal 2013-2017 American Community Survey 5-year Estimates. line 4 (B)  Notwithstanding subparagraph (A), “affected city” does not line 5 include any city that has a population of 5,000 or less and is not line 6 located within an urban core. line 7 (2)  “Affected county” means the unincorporated portions of a line 8 county that are wholly within the boundaries of an urbanized area line 9 or urban cluster, as designated by the United States Census Bureau, line 10 for which the Department of Housing and Community line 11 Development determines, pursuant to subdivision (f), (g), that the line 12 average of both of the following amounts is greater than zero: line 13 (A)  The percentage by which the average rate of rent for line 14 residential uses in the unincorporated portions of the county that line 15 are wholly within the boundaries of an urbanized area or urban line 16 cluster, as designated by the United States Census Bureau, differed line 17 from 130 percent of the national median rent in 2017, based on line 18 the federal 2013–2017 American Community Survey 5-year line 19 Estimates. line 20 (B)  The percentage by which the vacancy rate for residential line 21 rental units in the unincorporated portions of the county that are line 22 wholly within the boundaries of an urbanized area or urban cluster, line 23 as designated by the United States Census Bureau, differed from line 24 the national vacancy rate, based on the federal 2013–2017 line 25 American Community Survey 5-year Estimates. line 26 (3)  Notwithstanding any other law, “affected county“ and line 27 “affected city” includes the electorate of an affected county or city line 28 exercising its local initiative or referendum power, whether that line 29 power is derived from the California Constitution, statute, or the line 30 charter or ordinances of the affected county or city. line 31 (4)  “Department” means the Department of Housing and line 32 Community Development. line 33 (5)  “Development policy, standard, or condition” means any of line 34 the following: line 35 (A)  A provision of, or amendment to, a general plan. line 36 (B)  A provision of, or amendment to, a specific plan. line 37 (C)  A provision of, or amendment to, a zoning ordinance. line 38 (D)  A subdivision standard or criterion. line 39 (6)  “Housing development project” has the same meaning as line 40 defined in paragraph (2) of subdivision (h) of Section 65589.5. 91 — 44 — SB 330 line 1 (7)  “Objective design standard” means a design standard that line 2 involve no personal or subjective judgment by a public official line 3 and is uniformly verifiable by reference to an external and uniform line 4 benchmark or criterion available and knowable by both the line 5 development applicant or proponent and the public official before line 6 submittal of an application. line 7 (b)  (1)  Notwithstanding any other law except as provided in line 8 subdivision (i), with respect to land where housing is an allowable line 9 use on or after January 1, 2018, use, an affected county or an line 10 affected city shall not enact a development policy, standard, or line 11 condition that would have any of the following effects: line 12 (A)  Changing the general plan land use designation, specific line 13 plan land use designation, or zoning of a parcel or parcels of line 14 property to a less intensive use or reducing the intensity of land line 15 use within an existing general plan land use designation, specific line 16 plan land use designation, or zoning district below what was line 17 allowed under the land use designation and zoning ordinances of line 18 the affected county or affected city, as applicable, as in effect on line 19 January 1, 2018, except as otherwise provided in clause (ii) of line 20 subparagraph (B). For purposes of this subparagraph, “less line 21 intensive use” includes, but is not limited to, reductions to height, line 22 density, or floor area ratio, new or increased open space or lot size line 23 requirements, or new or increased setback requirements, minimum line 24 frontage requirements, or maximum lot coverage limitations, or line 25 anything that would lessen the intensity of housing, as defined in line 26 paragraph (1) of subdivision (f). (g). line 27 (B)  (i)  Imposing a moratorium or similar restriction or limitation line 28 on housing development, including mixed-use development, within line 29 all or a portion of the jurisdiction of the affected county or city, line 30 other than to specifically protect against an imminent threat to the line 31 health and safety of persons residing in, or within the immediate line 32 vicinity of, the area subject to the moratorium or for projects line 33 specifically identified as existing restricted affordable housing. line 34 (ii)  The affected county or affected city, as applicable, shall not line 35 enforce a zoning ordinance imposing a moratorium or other similar line 36 restriction on or limitation of housing development until it has line 37 submitted the ordinance to, and received approval from, the line 38 department. The department shall approve a zoning ordinance line 39 submitted to it pursuant to this subparagraph only if it determines line 40 that the zoning ordinance satisfies the requirements of this 91 SB 330 — 45 — line 1 subparagraph. If the department denies approval of a zoning line 2 ordinance imposing a moratorium or similar restriction or limitation line 3 on housing development as inconsistent with this subparagraph, line 4 that ordinance shall be deemed void. line 5 (C)  Imposing or enforcing design standards established on or line 6 after January 1, 2018, that are not objective design standards. line 7 (D)  Except as provided in subparagraph (E), establishing or line 8 implementing any provision that: line 9 (i)  Limits the number of land use approvals or permits necessary line 10 for the approval and construction of housing that will be issued or line 11 allocated within all or a portion of the affected county or affected line 12 city, as applicable. line 13 (ii)  Acts as a cap on the number of housing units that can be line 14 approved or constructed either annually or for some other time line 15 period. line 16 (iii)  Limits the population of the affected county or affected line 17 city, as applicable. line 18 (E)  Notwithstanding subparagraph (D), an affected city or line 19 county may enforce a limit on the number of approvals or permits line 20 or a cap on the number of housing units that can be approved or line 21 constructed if the provision of law imposing the limit was approved line 22 by voters prior to January 1, 2005, and the affected city or county line 23 is located in a predominantly agricultural county. For the purposes line 24 of this subparagraph, “predominantly agricultural county” means line 25 a county that meets both of the following, as determined by the line 26 most recent California Farmland Conversion Report produced by line 27 the Department of Conservation: line 28 (i)  Has more than 550,000 acres of agricultural land. line 29 (ii)  At least one-half of the county area is agricultural land. line 30 (2)  Any development policy, standard, or condition enacted on line 31 or after January 1, 2018, the effective date of this section that does line 32 not comply with this section shall be deemed void. line 33 (c)  Notwithstanding subdivisions (b) and (e), (f), an affected line 34 county or affected city may enact a development policy, standard, line 35 or condition to prohibit the commercial use of land that is line 36 designated for residential use, including, but not limited to, line 37 short-term occupancy of a residence, consistent with the authority line 38 conferred on the county or city by other law. line 39 (d)  Notwithstanding any other provision of this section, both of line 40 the following shall apply: 91 — 46 — SB 330 line 1 (1)  An affected city or an affected county shall not approve a line 2 housing development project that will require the demolition of line 3 residential dwelling units unless both of the following requirements line 4 are met: line 5 (A)  The project will create at least as many residential dwelling line 6 units as will be demolished. line 7 (B)  The affected city or affected county is not prohibited from line 8 approving the demolition of the residential dwelling units pursuant line 9 to any local ordinance or other law. line 10 (2)  An affected city or an affected county shall not approve a line 11 housing development project that will require the demolition of line 12 occupied or vacant protected units, unless all of the following line 13 apply: line 14 (A)  (i)  The project will replace all existing or demolished line 15 protected units. line 16 (ii)  Any protected units replaced pursuant to this subparagraph line 17 shall be considered in determining whether the housing line 18 development project satisfies the requirements of Section 65915 line 19 or a locally adopted requirement that requires, as a condition of line 20 the development of residential rental units, that the project provides line 21 a certain percentage of residential rental units affordable to, and line 22 occupied by, households with incomes that do not exceed the limits line 23 for moderate-income, lower income, very low income, or extremely line 24 low income households, as specified in Sections 50079.5, 50093, line 25 50105, and 50106 of the Health and Safety Code. line 26 (iii)  Notwithstanding clause (i), a protected unit that is or was, line 27 within the five-year period preceding the application, subject to line 28 a form of rent or price control through a local government’s valid line 29 exercise of its police power, and that is or was occupied by persons line 30 or families above lower income, the affected city or affected county line 31 may do either of the following: line 32 (I)  Require that the replacement units be made available at line 33 affordable rent or affordable housing cost to, and occupied by, line 34 low-income persons or families. If the replacement units will be line 35 rental dwelling units, these units shall be subject to a recorded line 36 affordability restriction for at least 55 years. line 37 (II)  Require that the units be replaced in compliance with the line 38 jurisdiction‘s rent or price control ordinance, provided that each line 39 unit is replaced. Unless otherwise required by the affected city or 91 SB 330 — 47 — line 1 affected county‘s rent or price control ordinance, these units shall line 2 not be subject to a recorded affordability restriction. line 3 (B)  The housing development project will include at least as line 4 many residential dwelling units as the greatest number of line 5 residential dwelling units that existed on the project site within line 6 the last five years, unless the project will be 100 percent affordable, line 7 exclusive of a manager’s unit or units, to lower income or very line 8 low income households. line 9 (C)  Any existing residents will be allowed to occupy their units line 10 until six months before the start of construction activities with line 11 proper notice, subject to Chapter 16 (commencing with Section line 12 7260) of Division 7 of Title 1. line 13 (D)  The developer agrees to provide both of the following to line 14 the occupants of any protected units: line 15 (i)  Relocation benefits to the occupants of those affordable line 16 residential rental units, subject to Chapter 16 (commencing with line 17 Section 7260) of Division 7 of Title 1. line 18 (ii)  A right of first refusal for a comparable unit available in line 19 the new housing development affordable to the household at an line 20 affordable rent, as defined in Section 50053 of the Health and line 21 Safety Code, or an affordable housing cost, as defined in 50052.5. line 22 (E)  The affected city or affected county is not prohibited from line 23 approving the demolition of the residential dwelling units pursuant line 24 to any local ordinance or other law. line 25 (F)  For purposes of this paragraph: line 26 (i)  “Equivalent size” means that the replacement units contain line 27 at least the same total number of bedrooms as the units being line 28 replaced. line 29 (ii)  “Protected units” means any of the following: line 30 (I)  Residential dwelling units that are or were subject to a line 31 recorded covenant, ordinance, or law that restricts rents to levels line 32 affordable to persons and families of lower or very low income line 33 within the past five years. line 34 (II)  Residential dwelling units that are or were subject to any line 35 form of rent or price control through a public entity’s valid exercise line 36 of its police power within the past five years. line 37 (III)  Residential dwelling units that are or were occupied by line 38 lower or very low income households within the past five years. 91 — 48 — SB 330 line 1 (IV)  Residential dwelling units that were withdrawn from rent line 2 or lease in accordance with Chapter 12.75 (commencing with line 3 Section 7060) of Division 7 of Title 1 within the past 10 years. line 4 (iii)  “Replace” shall have the same meaning as provided in line 5 subparagraph (B) of paragraph (3) of subdivision (c) of Section line 6 65915. line 7 (3)  This subdivision shall not supersede any provision of a line 8 locally adopted ordinance that places greater restrictions on the line 9 demolition of residential dwelling units or the subdivision of line 10 residential rental units, or that requires greater relocation line 11 assistance to displaced households. line 12 (d) line 13 (e)  The Department of Housing and Community Development line 14 shall determine those cities and counties in this state that are line 15 affected cities and affected counties, in accordance with subdivision line 16 (a) by June 30, 2020. The department’s determination shall remain line 17 valid until January 1, 2025. line 18 (e) line 19 (f)  (1)  Except as provided in paragraphs (3) and (4) and line 20 subdivisions (g) (h) and (i), this section shall prevail over any line 21 conflicting provision of this title or other law regulating housing line 22 development in this state to the extent that this section more fully line 23 advances the intent specified in paragraph (2). line 24 (2)  It is the intent of the Legislature that this section be broadly line 25 construed so as to maximize the development of housing within line 26 this state. Any exception to the requirements of this section, line 27 including an exception for the health and safety of occupants of a line 28 housing development project, shall be construed narrowly. line 29 (3)  This section shall not be construed as prohibiting the line 30 adoption or amendment of a development policy, standard, or line 31 condition in a manner that: line 32 (A)  Allows greater density. line 33 (B)  Facilitates the development of housing. line 34 (C)  Reduces the costs to a housing development project. line 35 (D)  Imposes or implements mitigation measures as necessary line 36 to comply with the California Environmental Quality Act (Division line 37 13 (commencing with Section 21000) of the Public Resources line 38 Code). line 39 (4)  This section shall not apply to a housing development project line 40 located within a very high fire hazard severity zone. For purposes 91 SB 330 — 49 — line 1 of this paragraph, “very high fire hazard severity zone” has the line 2 same meaning as provided in Section 51177. line 3 (f)  (1)  Notwithstanding Section 9215, 9217, or 9323 of the line 4 Elections Code or any other provision of law, except the California line 5 Constitution and as provided in paragraph (2), any requirement line 6 that local voter approval, or the approval of a supermajority of any line 7 body of the affected county or the affected city, be obtained to line 8 increase the allowable intensity of housing, to establish housing line 9 as an allowable use, or to provide services and infrastructure line 10 necessary to develop housing, is hereby declared against public line 11 policy and void. For purposes of this subdivision, “intensity of line 12 housing” is broadly defined to include, but is not limited to, height, line 13 density, or floor area ratio, or open space or lot size requirements, line 14 or setback requirements, minimum frontage requirements, or line 15 maximum lot coverage limitations, or anything that would be a line 16 less intensive use or reduction in the intensity of land use as defined line 17 in this subdivision. line 18 (2) line 19 (g)  This section shall not be construed to void a height limit, line 20 urban growth boundary, or urban limit established by the electorate line 21 of an affected county or an affected city on or before January 1, line 22 2018. city, provided that the height limit, urban growth boundary, line 23 or urban limit complies with subparagraph (A) of paragraph (1) line 24 of subdivision (b). line 25 (g) line 26 (h)  (1)  Nothing in this section supersedes, limits, or otherwise line 27 modifies the requirements of, or the standards of review pursuant line 28 to, Division 13 (commencing with Section 21000) of the Public line 29 Resources Code. line 30 (2)  Nothing in this section supersedes, limits, or otherwise line 31 modifies the requirements of the California Coastal Act of 1976 line 32 (Division 20 (commencing with Section 30000) of the Public line 33 Resources Code). line 34 (h) line 35 (i)  This section does not prohibit an affected county or an line 36 affected city from changing a land use designation or zoning line 37 ordinance to a less intensive use if the city or county concurrently line 38 changes the development standards, policies, and conditions line 39 applicable to other parcels within the jurisdiction to ensure that line 40 there is no net loss in residential capacity. 91 — 50 — SB 330 line 1 (i) line 2 (j)  Notwithstanding subdivisions (b) and (e), (f), this section line 3 does not prohibit an affected city or an affected county from line 4 enacting a development policy, standard, or condition that is line 5 intended to preserve or facilitate the production of housing for line 6 lower income households, as defined in Section 50079.5 of the line 7 Health and Safety Code, or housing types that traditionally serve line 8 lower income households, including mobilehome parks, line 9 single-room occupancy units, or units subject to any form of rent line 10 or price control through a public entity’s valid exercise of its police line 11 power. line 12 66301. This chapter shall remain in effect only until January line 13 1, 2025, and as of that date is repealed. line 14 SEC. 14. line 15 SEC. 13. The Legislature finds and declares that the provision line 16 of adequate housing, in light of the severe shortage of housing at line 17 all income levels in this state, is a matter of statewide concern and line 18 is not a municipal affair as that term is used in Section 5 of Article line 19 XI of the California Constitution. Therefore, the provisions of this line 20 act apply to all cities, including charter cities. line 21 SEC. 15. line 22 SEC. 14. No reimbursement is required by this act pursuant to line 23 Section 6 of Article XIII B of the California Constitution for certain line 24 costs that may be incurred by a local agency or school district line 25 because, in that regard, this act creates a new crime or infraction, line 26 eliminates a crime or infraction, or changes the penalty for a crime line 27 or infraction, within the meaning of Section 17556 of the line 28 Government Code, or changes the definition of a crime within the line 29 meaning of Section 6 of Article XIII B of the California line 30 Constitution. line 31 However, if the Commission on State Mandates determines that line 32 this act contains other costs mandated by the state, reimbursement line 33 to local agencies and school districts for those costs shall be made line 34 pursuant to Part 7 (commencing with Section 17500) of Division line 35 4 of Title 2 of the Government Code. line 36 SEC. 16. line 37 SEC. 15. The provisions of this act are severable. If any line 38 provision of this act or its application is held invalid, that invalidity 91 SB 330 — 51 — line 1 shall not affect other provisions or applications that can be given line 2 effect without the invalid provision or application. O 91 — 52 — SB 330 City of Huntington Beach File #:19-747 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Ursula Luna-Reynosa, Director of Community Development Subject: Approve the Appointment of Jeffrey Dahl to the Design Review Board as recommended by Council Liaisons Mayor Erik Peterson, and Mayor Pro Tem Lyn Semeta Statement of Issue: Transmitted for City Council’s consideration is the City Council Liaison recommended appointee for the Design Review Board (DRB)vacancy.There is currently one At-Large member vacancy on the DRB.The DRB Council Liaisons conducted interviews and are recommending Jeffrey Dahl be appointed as the new At-Large member. Financial Impact: Not applicable. Recommended Action: Approve the appointment of Jeffrey Dahl to the Design Review Board for a term to expire on July 2023. Alternative Action(s): The City Council may make the following alternative motion(s): 1.Continue the recommended action and direct staff to re-advertise the vacancy. 2.Deny the appointment of Jeffrey Dahl to the Design Review Board and request further review by the City Council Liaisons. Analysis: The composition of the DRB consists of one current Planning Commissioner,one current member of the Historic Resources Board,and three members at large.In addition,at least four of the five members shall have training,education,or work experience in design-related fields.The Design Review Board has been operating with one At-Large vacancy since 2018. The City has been actively recruiting for the vacant At-Large position on the DRB.A total of four applications were received for the vacancy from the advertisement.The Council Liaisons reviewed the applications,conducted interviews,and selected the most qualified candidate for the position.The Council Liaisons are recommending the appointment of Jeffrey Dahl to the position of the DRB At- City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-747 MEETING DATE:7/15/2019 Council Liaisons are recommending the appointment of Jeffrey Dahl to the position of the DRB At- Large member for a term to expire on July 2023.A copy of Jeffrey Dahl’s application,which details his relevant experience, is provided in Attachment No. 1. Environmental Status: Not applicable. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1.Jeffrey Dahl’s DRB Application City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ Opposite wallOpposite wallOpposite wallOpposite wall City of Huntington Beach File #:19-763 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Stephanie Beverage, Director of Library Services Subject: Approve the reappointment of Richard Moore and Faith Vogel for an additional term to the Library Board as recommended by Council Liaisons Kim Carr and Jill Hardy Statement of Issue: Appointments to the Library Board of Trustees must be approved by the City Council. Currently, three terms on the Board expired on June 30, 2019. Two of the three outgoing Board members have expressed interest in continuing to serve. Financial Impact: Not applicable. Recommended Action: Approve reappointment of Richard Moore and Faith Vogel for an additional term to the Library Board effective July 1, 2019 through June 30, 2023. Alternative Action(s): Do not make reappointments to the Library Board of Trustees at this time. Analysis: The terms of Sherrie Daugherty, Richard Moore and Faith Vogel expired on June 30, 2019. Two of the three Trustees have requested reappointment to the Library Board. Attached is the communication requesting reappointment for an additional term. Council Members Carr and Hardy has reviewed and approve the recommendation for reappointment. The Library will recruit a new member of the Board to replace outgoing member, Ms. Sherrie Daugherty. Environmental Status: Not applicable. Strategic Plan Goal: Non-Applicable - Administrative Item City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-763 MEETING DATE:7/15/2019 Attachment(s): 1.Library Board of Trustees Roster 2.Letter from Richard Moore 3.Letter from Faith Vogel City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ Rev. January 27, 2015 LIBRARY BOARD OF TRUSTEES – July 1, 2017 – June 30, 2019 SHERRIE DAUGHERTY Term: 7/1/15 – 6/30/19 DON LEWIS Term: 7/1/17-6/30/21 DIONNE COX Term: 7/1/17-6/30/21 BETTY CROTEAU Term: 7/1/17- 6/30/21 BEN MILES (Chair) Term: 7/1/17 – 6/30/21 RICHARD MOORE Term: 7/1/15 – 6/30/19 FAITH VOGEL Term: 7/1/15 – 6/30/19 The Library Board meets the third Tuesday of each month, 5:00 PM, Administrative Conference Room, Central Library City of Huntington Beach File #:19-742 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Travis K. Hopkins, PE, Director of Public Works Subject: Award and authorize execution of a construction contract with Corral Construction and Development, Inc. in the amount of $141,999 for the Central Library Restroom Access Compliance, MSC-528. Statement of Issue: On June 13, 2019, bids were publicly opened for the Central Library Restroom Access Compliance project, MSC-528. City Council action is requested to award a construction contract to Corral Construction and Development, Inc., the lowest responsive and responsible bidder, and to authorize up to 20% in project contingency expense. Financial Impact: A total of $251,168 is available for this project in Community Development Block Grant 18/19 Central Library ADA Restrooms, account 23985862.82200. Recommended Action: A)Accept the lowest responsive and responsible bid submitted by Corral Construction and Development, Inc. in the amount of $141,999; and, B)Authorize project contingency expense not to exceed $28,400; and, C)Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): Reject all bids and provide staff with alternative action. Analysis: The Central Library, located at 7111 Talbert Avenue, was originally a 74,000 square foot building opened in 1975. The facility was expanded in 1994 with the addition of 43,000 square feet for the Children’s Wing, theater, and meeting rooms. The Central Library serves thousands of patrons each City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-742 MEETING DATE:7/15/2019 month for Library services and special events. The restrooms on the main floor appear to be original to the 1970’s and do not meet current ADA accessibility standards. In 2018, the Public Works Department applied for and received Community Development Block Grant funds to renovate the main floor Men’s and Women’s restrooms to meet current accessibility standards. A professional architect developed the plans and specifications, which were approved through the City’s Building Department. Bids were publicly opened on June 13, 2019. The bids are listed below from lowest to highest bid amount. VENDOR BID AMOUNT Corral Construction and Development Inc.$141,999.00 BNC Construction, Inc.$142,000.00 Caliba Inc.$175,000.00 Klassic Engineering & Construction Inc.$185,000.00 Staff verified the references and comparable experience for Corral Construction and Development Inc. and received favorable responses. Based on prior experience in renovating other city facilities of a similar age and older, staff is requesting authorization to spend up to 20% of the contract for construction contingency not to exceed $28,399.80, if necessary. The standard contingency for construction contracts is 10%. The additional 10% contingency authorization will provide staff with the flexibility to avoid construction delays and to minimize disruption to Library operations in the event of unforseen site conditions. The total construction project cost including contingency and supplemental expenses is estimated not to exceed $180,000. The architect’s pre-bid construction estimate for the project, excluding contingency and supplemental, was $142,250. Public Works Commission Action: The Public Works Commission reviewed and approved the project on March 20, 2019 with a vote of 6-0-1 (Nguyen absent). Environmental Status: The project is categorically exempt pursuant to Chapter 3, Article 19, Section 15301(b) and 15301(d) of the California Environmental Quality Act. Strategic Plan Goal: Enhance and maintain infrastructure Attachment(s): None. Click or tap here to enter text. City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ City of Huntington Beach File #:19-745 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Travis K. Hopkins, PE, Director of Public Works Subject: Approve and authorize execution of Amendment #1 to the Professional Services Agreement with Enterprise Automation for On-Call Engineering Services for Water and Wastewater Supervisory Control and Data Acquisition (SCADA) system in the amount of $300,000 and extending the term one year Statement of Issue: Submitted for City Council approval is Amendment #1 to the Professional Services Agreement with Enterprise Automation for on-call engineering services for Supervisory Control and Data Acquisition (SCADA) Systems. Financial Impact: Funding in the amount of $300,000 is contained in the approved Fiscal Year 19/20 budget; including $260,000 in Water Fund Professional Services account 50685801.69365 and $40,000 in Sewer Service Fund Professional Services account 51185201.69365. Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and Enterprise Automation for On-Call Engineering Services for Water and Wastewater SCADA System.” Alternative Action(s): Deny approval of the amendment. Analysis: The City’s SCADA system monitors and/or controls the City’s groundwater wells, reservoirs, pump stations, imported water connections, flood control pump stations and sanitary sewer lift stations. This allows staff to remotely monitor and/or modify the operation of 67 key water and wastewater facilities 24 hours a day, and alerts staff of any potential problem(s) so they can be addressed immediately to minimize the possibility of system disruptions. City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-745 MEETING DATE:7/15/2019 Enterprise Automation (Enterprise) was awarded a three year contract in July of 2016 to provide the City of Huntington Beach with “As Needed” programming and engineering services related to managing and maintaining the water and wastewater SCADA systems. Services included but are not limited to: ·Design assistance with SCADA system reports and programming thereof. ·Ongoing security updates and periodic security audits. ·SCADA system functional upgrades. ·Provide new or modify existing Programmable Logic Controller (PLC) programming. ·Ongoing equipment optimization, monitoring and maintenance. ·Guidance regarding software upgrades. As part of the Water Production SCADA Replacement Design Project, the City and Enterprise discussed new SCADA architectures and software packages and their use in other similar utility environments. This discussion was driven by two main factors: ·The entire water production SCADA system,which had been in use since 2000,needed to undergo extensive reprogramming due to age and frequent programming and maintenance issues. ·The annual license renewal and software product support costs had become very expensive. The City and Enterprise evaluated three SCADA software packages and concluded that VTScada was substantially less expensive than the current SCADA package and had all of the features and functionality needed for the City’s SCADA system. Licenses for VTScada have been obtained and a pilot site has been developed and is communicating with Edwards reservoir. The contract amendment is necessary to extend the term of the current professional services agreement by one year to complete the VTScada programming and installation. Environmental Status: Not Applicable Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1.Amendment #1 to Professional Services Agreement with Enterprise Automation City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ City of Huntington Beach File #:19-760 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Behzad Zamanian, Chief Information Officer Subject: Approve and authorize execution of Amendment No. 2 to Professional Services Agreement with Go-Live Technology, Inc. in the amount of $60,000 for the Citywide Enterprise Land Management (ELM) implementation, and approve and authorize an increase in the Information Services Professional Service listing authority by $60,000 Statement of Issue: Approve an amendment to the existing professional services agreement between the City of Huntington Beach and Go-Live Technology in the amount of $60,000, increasing the total contract from an existing $296,000 to $356,000. This amendment is requested to continue project management services for the Citywide Enterprise Land Management (ELM) project. Financial Impact: No financial impact. Recommended Action: A)Approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Professional Services Agreement between the City of Huntington Beach and Go-Live Technology, Inc. for as needed Information Technology Project Management Services”; and, B)Approve and authorize an increase in the Information Services Professional Services listing authority by $60,000. Alternative Action(s): Deny amendment and direct staff accordingly. Analysis: Go-Live Technology, Inc. provides IT project management services to cities and water districts with extensive experience in planning and managing the deployment of enterprise-wide City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-760 MEETING DATE:7/15/2019 applications such as Financial ERP, Billing, and Land Management enterprise applications and systems. The City executed a three-year professional services contract with Go-Live Technology for project management services in 2017. Go-Live Technology was retained to work on the implementation of three complex software applications, including the Enterprise Cashiering, Utility Billing, and Enterprise Land Management initiatives. The three systems are tightly integrated and are integral to the City's financial stability and budget. These systems are also vital to customer service and business processes in the departments. The City completed the implementation of the Utility Billing and Enterprise Cashiering projects and now working on the final stage (User Acceptance Testing - UAT) of the Enterprise Land Management system. To improve customer service features and functionality, a number of additional automations were identified and developed that resulted in extending project timeline to October 2019 for additional testing and Go-Live Technology was assigned to provide greater assistance than anticipated. Additionally, Go-Live Technology will assist with post-golive issues and enhancements. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain high quality City services Attachment(s): 1.Go-Live Technology - Amendment 2 Professional Services Agreement 2.Go-Live Technology - Amendment 1 Professional Services Agreement 3.Go-Live Technology - Original Professional Services Contract City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ City of Huntington Beach File #:19-766 MEETING DATE:7/15/2019 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 a Ten-Year Lease Agreement with Kathy May’s Restaurant in Huntington Central Park located at 6622 Lakeview Drive Statement of Issue: The City Council is asked to approve a ten-year lease with Kathy May’s Restaurant, Inc. for the operation of a restaurant/food concession in Huntington Central Park. The Lease is an extension of the existing lease and allows for on-site service of beer and wine. Financial Impact: No fiscal impact. Recommended Action: A)Approve the “Lease Agreement between the City of Huntington Beach and Kathy May’s Restaurant, Inc.”, for the restaurant building located 6622 Lakeview Drive in Huntington Beach; and, B)Authorize the Mayor and City Clerk to execute the Lease Agreement on behalf of the City. Alternative Action(s): Do not approve the Lease Agreement and direct staff accordingly. Analysis: On August 15, 2011, the City Council approved a 10-year lease with Kathy May’s Restaurant Inc., to operate a family style restaurant located on the west side of Central Park at 6622 Lakeside Drive. Kathy May invested approximately $100,000 in tenant improvements to rehabilitate and upgrade the facility, including bringing it into compliance with the American’s with Disabilities Act. On January 16, 2018, a Councilmember Item was introduced by Councilmember Brenden directing staff to investigate code amendments to allow the sale of beer and wine at restaurants with full table service located in the OS-PR Zone, primarily Central Park. The Planning Commission conducted a public hearing to consider the sale of beer and wine at restaurants. The Planning Commission approved Zoning Text Amendment (“ZTA”) No. 18-001 and forward it to the City Council for approval. On May 7, 2018, the City Council approved Ordinance City of Huntington Beach Printed on 7/10/2019Page 1 of 3 powered by Legistar™ File #:19-766 MEETING DATE:7/15/2019 No. 4156 approving ZTA No. 18-001, thereby amending Section 213.06 of the Huntington Beach Zoning and Subdivision Ordinance (Attachment No. 1) with conditions. The conditions consist of no packaged sales of alcohol and increased preventative security measures consisting of: working alarm system for the facility, functioning video surveillance, and motion detection lighting. At the beginning of 2019, due to the death of Kathy May, her daughters assumed operations and approached staff to finalize the application to sell beer and wine as part of their dining menu at the restaurant and requested an extension of the lease for building improvements. On May 1, 2019, the Zoning Administrator approved a Conditional Use Permit 19-006 (“CUP”), subject to issuance of a Type 41 License by the State of California Alcohol Beverage Control Department (“ABC”) and Conditions of Approval (Attachment No. 2). A complete list of the Conditions of Approval are found in Attachment No. 3, with key conditions outlined below: ·Daily Hours of Operation: Limited to 7:00 am - 10:00 pm (dining room & outdoor patio) ·Food service until at least one hour prior to scheduled closing time ·Sale of alcoholic beverages for consumption off-site is prohibited ·No reduced prices or promotions of alcoholic beverages after 7:00 pm ·No games/contests involving consumption of alcoholic beverages ·Employees shall complete Responsible Beverage Service training and certification by the ABC ·No live entertainment, unless an Entertainment Permit is issued by HBPD A new draft lease agreement (“Lease”) has been prepared to incorporate the Conditions of Approval made under the CUP as approved by the Zoning Administrator and to provide an extension to July 2029. Kathy May’s Restaurant Inc. is governed by April Diaz (President) and Dawn Carrion (Secretary) and they have been operating the restaurant. The terms of the proposed lease are as follows: Percentage Rent Sales from July 2019 to July 2024 based on the following thresholds: Annual Gross Sales Percentage of Gross Sales $0--$100,000 7.5% $100,000--$150,000 9.5% $150,000 and over 11.5% Percentage Rent Sales from July 2024 to July 2029 based on the following thresholds: Annual Gross SalesPercentage of Gross Sales $0--$100,000 8.0% $100,000--$150,000 10.0% $150,000 and over 11.5% In those months where the Percentage of Gross Sales does not exceed $1,875, a minimum base rent of City of Huntington Beach Printed on 7/10/2019Page 2 of 3 powered by Legistar™ File #:19-766 MEETING DATE:7/15/2019 $1,875/month will be billed. The term of the Lease will be for ten (10) years upon approval by the City Council. The Economic Development Committee recommended approval of the Lease on December 19, 2018. Environmental Status: Not applicable Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1.Ordinance No. 4156 2.Zoning Administrator May 1, 2019 Meeting Minutes 3.CUP No.19-006 Conditions of Approval 4.Lease Agreement between the City of Huntington Beach and Kathy May’s Restaurant, Inc. City of Huntington Beach Printed on 7/10/2019Page 3 of 3 powered by Legistar™ ORDINANCE NO.4156 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 213 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE TITLED OS OPEN SPACE DISTRICT ZONING TEXT AMENDMENT NO. 18-001) WHEREAS, pursuant to the California State Planning and Zoning Law, the Huntington Beach Planning Commission and Huntington Beach City Council have held separate, duly noticed public hearings to consider Zoning Text Amendment No. 18-001, which amends Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance to establish a conditional use permit process to permit the sales, service, and consumption of beer and wine within the OS -PR zoning district; and After due consideration of the findings and recommendations of the Planning Commission and all other evidence presented, the City Council finds that the aforesaid amendment is proper and consistent with the General Plan, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That Chapter 213 of the Huntington Beach Zoning and Subdivision Ordinance titled Definitions is hereby amended to read as set forth in Exhibit A. SECTION 2. All other provisions of Chapter 213 not modified herein shall remain in full force and effect. SECTION 3. This Ordinance shall become effective immediately 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21srt dayof , 20 Mayor 0 ATTEST: O - APPROVED A FORM: tip? City Clerk REVIEW* APPROVED: City Npajer Exhibit A: Legislative Draft Attorney INITIATED AND APPROVED: Direc r of C unity Development 18- 6322/ 175172/mv OKt , A)D .14150 "Exh b)+7J * LEGISLATIVE DRAFT 03/30/2018 OS District Land Use Controls P = Permitted L = Limited (see Additional Provisions) PC = Conditional use permit approved by Planning Commission ZA = Conditional use permit approved by Zoning Administrator TU = Temporary Use Permit P/U = Requires conditional use permit on site of conditional use Not Permitted OS -PR OS-S OS-WR Additional Provisions Public and Semipublic F) Marinas PC Park & Recreation Facilities PC PC Public Safety Facilities PC Utilities, Major Utilities, Minor ZA ZA Commercial Uses F) Animal Sales and Services Equestrian Centers PC E) Commercial Recreation and Entertainment PC Communication Facilities L-4 Eating & Drinking Establishments L 1 L 1 With Alcohol ZA L-5 With Take -Out Service, Limited L1 L3 Vehicle/Equipment Sales and Services Commercial Parking Facility L2 L2 Accessory Uses I I I (A)(D) Accessory Uses and Structures P/U P/U P/U Temporary Uses B) Animal Shows TU Circuses and Carnivals TU Commercial Filming ITU ITU ITU OrX,Nv. y15l0'KXhi hl-W LEGISLATIVE DRAFT 03/30/2018 INonconforming Uses I I I I(C) I OS District: Additional Provisions L-1 Allowed with a conditional use permit approval by the Zoning Administrator only as an ancillary use that is compatible with and part of a park or recreational facility. Only in the coastal zone overlay district, in public parks in both the Parks and Recreation and the Shoreline Subdistricts, only the following type of eating and drinking establishment shall be permitted: take-out service establishments where patrons order and pay for their food at a counter or window before it is consumed and may either pick up or be served such food at a table or take it off -site for consumption; and persons are not served in vehicles. L-2 Public parking is permitted, but commercial parking facilities on City -owned land require a conditional use permit approval by the Planning Commission. Recreational vehicle overnight parking is limited to 10% of available public parking. No encroachment onto sandy beach area shall be permitted. L-3 Beach concession stands for sale of refreshments and sundries (not to exceed 2,500 square feet) must be located a minimum 1,000 feet apart. Beach concession structures shall be located within or immediately adjacent to paved parking or access areas. L-4 Only wireless communication facilities permitted subject to Section 230.96, Wireless Communication Facilities. L-5 Eating and drinking establishments with full table service, with or without outdoor dining, located in Central Park may provide on -site sales, service and consumption of beer and wine upon obtaining a Conditional Use Permit approved by the Zoning Administrator. Public or private golf courses with or without outdoor dining, may provide the on -site sales, service and consumption of alcohol upon obtaining a Conditional Use Permit approved by the Zoning Administrator. A) Limited to facilities incidental to an open space use. B) See Section 241.22, Temporary Use Permits. C) See Chapter 236, Nonconforming Uses and Structures. D) Private cantilevered decks abutting residential uses; private boat ramps, slips, docks, windscreen and boat hoists in conjunction with adjacent single family dwellings. See Residential Districts and Chapter 17.24. E) See Section 230.48, Equestrian Centers. F) The permitted uses for recreation areas on the Huntington Beach mesa shall be limited to low - intensity uses including picnic grounds, arboretums, bird sanctuaries, trails. High -intensity uses such as tennis courts, athletic fields, stables, campgrounds or other commercial or recreation uses shall be conditional only, and shall be located in nodes adjacent to existing developed areas or roads and shall avoid adverse impacts on environmentally sensitive habitats. (3334-6/97, 3568-9/02) Zoning Administrator Wednesday, May 1, 2019 1:30 PM - Regular Meeting MINUTES City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Room B-8, Lower Level JOANNA CORTEZ, Associate Planner JUDY GRAHAM, Administrative Secretary RICKY RAMOS, Senior Planner CALL TO ORDER PUBLIC COMMENTS Anyone wishing to speak during PUBLIC COMMENTS must fill out and submit a form to speak. The Zoning Administrator can take no action on this date, unless the item is agendized. Anyone wishing to speak on items not on today’s agenda, may do so during PUBLIC COMMENTS. Please note comments on closed public hearing items will not be part of the permanent entitlement record. Speakers on items scheduled for PUBLIC HEARING will be invited to speak during the public hearing. (3 MINUTES PER PERSON, NO DONATING OF TIME TO OTHERS) PUBLIC HEARING ITEMS COASTAL DEVELOPMENT PERMIT NO. 2019-004 (WINDWARD ARCHAEOLOGICAL GRADING AND MONITORING) REQUEST: To permit archaeological grading and monitoring activities on a vacant 2.5-acre portion of an approximately 5-acre property located in the Coastal Zone. LOCATION: APN 163-361-10 (Vacant Property - Southeast of Bolsa Chica Street at Los Patos Avenue; South of City landscape lot) Continued to the May 15, 2019, meeting. COASTAL DEVELOPMENT PERMIT NO. 19-005 (MOBILITIE SMALL CELL WIRELESS FACILITY) REQUEST: To remove an existing 23 ft. 9 in. high light pole and replace with a new 24 ft. 1 in. high light pole to install small cell wireless equipment at an overall height of 27 ft. 2 in. and new underground infrastructure in the public right-of-way located in the Coastal Zone. LOCATION: Page 1 of 5 Zoning Administrator MINUTES May 1, 2019 West side of 13th Street approximately 100 linear feet north of Pacific Coast Highway. Attachment No. 1 - Suggested Findings and Conditions of Approval.pdf Attachment No. 2 - Plans Received and Dated March 29, 2019.pdf Attachments: This agenda item was approved with conditions. COASTAL DEVELOPMENT PERMIT NO. 19-006 (MOBILITIE SMALL CELL WIRELESS FACILITY) REQUEST: To remove an existing 23 ft. 9 in. high light pole and replace with a new 24 ft. 1 in. high light pole to install small cell wireless equipment at an overall height of 27 ft. 2 in. and new underground infrastructure in the public right-of-way within the Coastal Zone. LOCATION: West side of 12th Street approximately 100 linear feet north of Pacific Coast Highway. Attachment No. 1 - Suggested Findings and Conditions of Approval.pdf Attachment No. 2 - Photo Simulations and Plans received and dated March 29, 2019.pdf Attachments: This agenda item was approved with conditions. CONDITIONAL USE PERMIT NO. 19-004/COASTAL DEVELOPMENT PERMIT NO. 19-002 REQUEST: To remove an existing 24 ft. 10 in. high wooden utility pole and replace with a new 30 ft. high wooden utility pole to install small cell wireless equipment at an overall height of 32 ft. 6 in. and new underground infrastructure installations in the public right -of-way located in the Coastal Zone. LOCATION: North side of Pacific Coast Highway, approximately 855 linear feet north of Newland Street. Continued to the May 15, 2019, meeting. TENTATIVE PARCEL MAP NO. 2018-181 (MAGNOLIA ATLANTA SUBDIVISION) REQUEST: To permit the subdivision of an approximately 2.872-acre parcel into three parcels. Page 2 of 5 Zoning Administrator MINUTES May 1, 2019 LOCATION: 20921 - 20981 Magnolia Street and 8901- 8955 Atlanta Avenue, 92646 (northwest corner of Magnolia Street and Atlanta Avenue) SUGGESTED FINDINGS AND CONDITIONS OF APPROVAL.doc Preliminary Parcel Map.pdf Attachments: This agenda item was approved with conditions. ENTITLEMENT PLAN AMENDMENT NO. 19-001 (OUZO AND FETA OUTDOOR DINING) REQUEST: To amend Condition 2.a of CUP No. 16-041 to modify the hours of operation and permit the sales, service, and consumption of general alcohol (ABC Type 47 License) within a 342 sq. ft. proposed outdoor patio. LOCATION: 19171 Magnolia St., Suite 1 & 2, 92646 (west side of Magnolia St., south of Garfield Ave.) ATT#1 - EPA 19-001 (OUZO AND FETA OUTDOOR DINING)_FINDINGS ATT#2 - Plans 2.25.19 Attachments: Continued to the May 15, 2019, meeting. CONDITIONAL USE PERMIT NO. 19-006 (KATHY MAY’S CAFÉ BEER AND WINE) REQUEST: To allow the sales, service, and consumption of beer and wine (ABC Type 41 License) within an existing 2,176 sq. ft. restaurant and 1,248 sq. ft. outdoor patio. LOCATION: 6622 Lakeview Dr., 92648 (at the terminus of Lakeview Dr ., between Edwards St. and Goldenwest St. - Central Park) ATT#1 - CUP 19-006 (KATHY MAY'S CAFE BEER & WINE) ATT#2 - PLANS 2.19.19 Attachments: This agenda item was approved with conditions. ADJOURNMENT Page 3 of 5 Zoning Administrator MINUTES May 1, 2019 The next regularly scheduled meeting of the Zoning Administrator is Wednesday, May 15, 2019, at 1:30 PM in Room B-8, Lower Level, Civic Center, 2000 Main Street, Huntington Beach, California. Under the provisions of the Huntington Beach Zoning and Subdivision Ordinance, the action taken by the Zoning Administrator is final unless an appeal is filed to the Planning Commission by you or by an interested party. Said appeal must be in writing and must set forth in detail the action and grounds by which the applicant or interested party deems himself aggrieved. Said appeal must be accompanied by a filing fee of Three Thousand One Hundred Two Dollars ($3,102.00) if the appeal is filed by a single family dwelling property owner appealing the decision on his own property and Four Thousand Two Hundred Eighty-One Dollars ($4281.00) if the appeal is filed by any other party. The appeal shall be submitted to the Secretary of the Planning Commission within ten (10) calendar days of the date of the Zoning Administrator's action or ten (10) working days for a coastal development permit. INTERNET ACCESS TO THE ZONING ADMINISTRATOR AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO ZONING ADMINISTRATOR MEETINGS AT: https://huntingtonbeach.legistar.com/ Page 4 of 5 Zoning Administrator MINUTES May 1, 2019 MEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact the Community Development Department at (714) 536-5271 for more information, or request assistance from the staff or Sergeant-at-Arms at the meeting. Page 5 of 5 ATTACHMENT NO. 1 FINDINGS AND CONDITIONS OF APPROVAL CONDITIONAL USE PERMIT NO. 19-006 FINDINGS FOR PROJECTS EXEMPT FROM CEQA: The Zoning Administrator finds that the project will not have any significant effect on the environment and is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to section 15301 of the CEQA Guidelines, because the project involves no expansion in the overall floor area of an existing restaurant. FINDINGS FOR APPROVAL - CONDITIONAL USE PERMIT NO. 19-006: 1. Conditional Use Permit No. 19-006 to allow the sales, service, and consumption of beer and wine (ABC Type 41 License) within an existing 2,176 sq. ft. restaurant and 1,248 sq. ft. outdoor patio will not be detrimental to the general welfare of persons working or residing in the vicinity or detrimental to the value of the property and improvements in the neighborhood because the proposed sales, service and consumption of beer and wine, as conditioned, will not generate noise, traffic, demand for parking or other impacts as the use is primarily a restaurant and the sales, service, and consumption of beer and wine will be an ancillary part of the restaurant use. The sale, service and consumption of alcohol will occur entirely within the existing restaurant and 1,248 sq. ft. outdoor patio. The restaurant is located within a public park (Central Park). The nearest residential use is located approximately 300 ft. to the west and is buffered by the park, a parking lot, and a public street (Lakeview Dr.). The entrance of the restaurant and patio is oriented west toward Central Park, away from residential uses. The sales, service, and consumption of beer and wine is not permitted in the patio area between the hours of 10:00 PM and 7:00 AM to ensure any potential impacts to surrounding uses are minimized. As such, im pacts to the residential uses are not anticipated. 2. The granting of Conditional Use Permit No. 19-006 to allow the sales, service, and consumption of beer and wine (ABC Type 41 License) within an existing 2,176 sq. ft. restaurant and 1,248 sq. ft. outdoor patio will not adversely affect the General Plan. It is consistent with the Land Use Element designation of OS-P (Open Space – Park) on the subject property. In addition, it is consistent with the following objective and policies of the General Plan: A. Land Use Element Goal LU-11: Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11.A: Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11.B: Encourage new businesses to locate on existing vacant or underutilized commercial properties where the properties have good locations and accessibility. The request to allow beer and wine sales within an existing 2,176 sq. ft. restaurant and 1,248 sq. ft. outdoor patio provides expanded goods and services to meet the needs of the community and regional area and will add to the capture of sales tax revenue. The proposed use is located in an existing restaurant and the consumption of beer and wine will be an ancillary part of the use. The nearest residential use is located approximately 300 ft. to the west and is buffered by the park, a parking lot, and a public street (Lakeview Dr.). The entrance of the restaurant and patio is oriented west toward Central Park, away from residential uses. 3. The proposed conditional use permit to allow the sales, service, and consumption of beer and wine (ABC Type 41 License) within an existing 2,176 sq. ft. restaurant and 1,248 sq. ft. outdoor patio will comply with the provisions of the base district and other applicable provisions in Titles 20-25 of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO). The proposed eating and drinking establishment is permitted subject to a Conditional Use Permit within the OS-PR (Open Space – Parks and Recreation Subdistrict) zoning district pursuant to Section 213.06 of the HBZSO. The sales, service, and consumption of beer and wine will be an ancillary use of an established restaurant building that conforms to applicable site development standards in terms of minimum parking, minimum yard setbacks, minimum landscaping, and maximum floor area ratio. CONDITIONS OF APPROVAL - CONDITIONAL USE PERMIT NO. 19-006: 1. The site plan, floor plans, and elevations received and dated February 19, 2019. 2. The use shall comply with the following: a. The hours of operation shall be limited to the following: i. Daily (dining room): 7:00 AM – 10:00 PM ii. Daily (outdoor patio): 7:00 AM – 10:00 PM b. Prior to sales, service or consumption of alcoholic beverages the business shall obtain an ABC license authorizing alcohol use in the restaurant. The business shall be limited to a Type 41 (On sale beer/wine eating place) ABC License. (PD) c. To ensure the location maintains a restaurant atmosphere, food service from the regular menu shall be available from the time the business opens to the public, until at least one hour prior to the scheduled closing time. (PD) d. Service of alcoholic beverages for consumption off-site shall not be permitted. (PD) e. No packaged sales of alcohol allowed. (PD) f. No reduced price or promotions of alcoholic beverages shall be allowed after 7:00PM. (PD) g. No games or contests requiring or involving the consumption of alcoholic beverages shall be permitted. (PD) h. All employees engaged in the sale or service of alcohol shall complete mandatory Responsible Beverage Service (RBS) training and certification. This shall be required for new employees within 90 days of being hired and for existing employees every 12 months. Training shall be provided by ABC or an ABC approved RBS trainer. Records of the training shall be maintained on- site for review. (PD) i. Consumption of alcoholic beverages by on-duty employees and supervisory personnel is forbidden. (PD) j. An employee of the establishment must monitor all areas where alcohol is served. (PD) k. There shall be no entertainment allowed without a valid Entertainment Permit issued by the Huntington Beach Police Department. Entertainment which would require additional parking, or modification of plans dated 2-19-19 would need approval by The Planning Department and may require a Conditional Use Permit (CUP) for this specific use. (PD) l. No dining or consumption of alcoholic beverages shall be permitted in the outdoor patio areas between the hours of 10:00 PM and 7:00 AM daily. (PD) m. A sign shall be posted in a conspicuous space at the exit point in the patio which shall state “NO ALCOHOLIC BEVERAGES BEYOND THIS POINT.” (PD) n. The patio shall have a physical barrier of no less than 36 inches in height surrounding the outdoor dining area and designed in a manner that will prohibit passing of alcohol through the barrier. (PD) o. Signage, posters, and advertising with “Do Not Drink and Drive” shall be posted in the business. (PD) p. There shall be no exterior advertising or sign of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. Interior displays of alcoholic beverages or signs which are clearly visible to the exterior shall constitute a violation of this condition. (PD) q. All areas where the sales, service, and consumption of alcoholic beverages will be permitted must be sufficiently illuminated to permit the identification of patrons. (PD) r. There must be increased motion detected lighting. (PD) s. There shall be no window coverings or advertisements that reduce the visibility inside of the business. This will assist officers in observing crimes in progress. (PD) t. The establishment must have a working alarm system. (PD) u. The establishment must secure alcohol after hours. (PD) v. The establishment shall employ a video surveillance security system with a minimum of one-month video library recorded to a DVR or Cloud based system. The cameras minimum requirements will be: color, digital and able to record in low light. The business shall ensure all public areas, entrances, exits, parking areas to the front and adjacent to the business are covered by video surveillance. Electronic copies of video must be made available to the Huntington Beach Police Department within 48 hours of request. Digital recordings shall be made available for viewing on-scene upon request by police personnel conducting investigations. You are required to have someone able to operate the system on duty during all business hours. (PD) w. All owners, employees, representatives, and agents must obey all state, local, and municipal laws, and conditions of the Conditional Use Permit, Alcoholic Beverage Control License and any other regulations, provisions, or restrictions prescribed by a regulatory authority with jurisdiction over the premise at all times. (PD) 3. CUP No. 19-006 shall become null and void unless exercised within two years of the date of final approval or such extension of time as may be granted by the Director pursuant to a written request submitted to the Community Development Department a minimum 30 days prior to the expiration date. 4. The Development Services Departments and divisions (Building & Safety, Fire, Planning and Public Works) shall be responsible for ensuring compliance with all applicable code requirements and conditions of approval. The Director of Community Development may approve minor amendments to plans and/or conditions of approval as appropriate based on changed circumstances, new information or other relevant factors. Any proposed plan/project revisions shall be called out on the plan sets submitted for building permits. Permits shall not be issued until the Development Services Departments have reviewed and approved the proposed changes for conformance with the intent of the Zoning Administrator’s action. If the proposed changes are of a substantial nature, an amendment to the original entitlement reviewed by the Zoning Administrator may be required pursuant to the provisions of HBZSO Section 241.18. INDEMNIFICATION AND HOLD HARMLESS CONDITION: The owner of the property which is the subject of this project and the project applicant if different from the property owner, and each of their heirs, successors and assigns, shall defend, indemnify and hold harmless the City of Huntington Beach and its agents, officers, and employees from any claim, action or proceedings, liability cost, including attorney’s fees and costs against the City or its agents, officers or employees, to attack, set aside, void or annul any approval of the City, including but not limited to any approval granted by the City Council, Planning Commission, or Design Review Board concerning this project. The City shall promptly notify the applicant of any claim, action or proceeding and should cooperate fully in the defense thereof. LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND KATHY MA Y'S RESTAURANT, INC. THIS AGREEMENT is made and entered into this ___ day of _______ _ 20 __ , by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "CITY"), and KA THY MAY'S RESTAURANT, INC., (hereinafter referred to as "Lessee") together City and Lessee may be referred to as ("Parties"). WHEREAS, City owns certain real property including a 2, 176 square foot free standing restaurant building generally located in Huntington Beach Central Park West, with an address of 6622 Lakeview Drive, Huntington Beach, CA 92648 (hereinafter referred to as the "Premises") and Lessee desires to continue to lease the aforesaid Premises with a new condition regarding alcohol sales in the manner set forth below. NOW, THEREFORE, the parties covenant and agree as follows: SECTION I. SUPERSEDING OF PRIOR LEASE This Lease shall supersede and replace any existing lease agreement(s) for the Premises currently entered into by and between the Parties and all supplemental agreement(s) entered into by and between the Parties regarding the existing use of the Premises. SECTION 2. GRANT OF CONCESSION ON THE PREMISES The Premises are hereby leased for the purpose of operation of a family style restaurant/food concession with the sale of alcohol. City reserves the right to prohibit the sale of any item or article, including certain alcoholic beverages which are objectionable or beyond the scope of the of this Lease. City reserves the right to establish and revise a schedule of maximum prices for any or all items sold to the public by Lessee on the Premises; provided, however, that 19-7761 /207926 Page 1of51 any such schedule of maximum prices established by City shall be reasonable and in accordance with the best interests of the public, the Lessee, and the City. The restaurant shall be in operation a minimum of three hundred (300) days during a calendar year. Hours of operation will be from 7:00 a.m. to 9:00 p.m. These times may be adjusted seasonally with prior approval of City. City, pursuant to the terms of this Lease, grants to Lessee for the purposes stated herein, the right, privilege and duty to equip, operate and maintain a concession open to the public located on the Premises (hereinafter sometimes referred to as the "Concession"). Lessee shall not use the Premises for any other purpose or business. A map depicting the Premises is set forth in Exhibit "A", which is attached hereto and incorporated herein by this reference. This Lease is not intended to confer third-party beneficiary status to anyone. SECTION 3. SALE OF ALCOHOLIC BEVERAGES: The Lessee shall obtain a Type 41 License from the State of California Department of Alcoholic Beverage Control (the "Liquor License") permitting Lessee throughout the Lease Term to serve beer and wine for on-premises consumption in the Premises seven (7) days per week (until at least 9:00 P.M.), subject to and in accordance with all applicable provisions of federal, state, and local laws and this Lease. The Lessee shall use all reasonable efforts and diligence to maintain the Liquor License in full force and effect and good standing. Lessee's ability to obtain the Liquor License for the Premises shall be a condition precedent to Lessee selling beer and wine. As property owner, the City will be the applicant or co-applicant for all alcohol related City permits, including a conditional use permit. Any such discretionary permit shall not run with the land and shall not provide Lessee a property right in said permit and related operations. Lessee shall pay all costs associated with obtaining said permit(s). City will not be the applicant for non-City permits including ABC licensing. 19-7761/207926 Page 2 of 51 Upon the receipt of all governmental approvals, including the Liquor License, and City land use approvals, lessee may sell alcoholic beverages on the Premises subject to the following conditions: (a) Lessee is not in default of any of the provisions of this Lease including timely payments of all amounts due pursuant to this Lease; (b) Lessee complies with all conditions included in the governmental approvals including conditions imposed on the Liquor License, City land use and/or any other conditions imposed upon a license or permit issued by government agency; ( c) In addition to, or in conjunction with any restrictions placed on any discretionary permit, the following operational standards shall be adhered to as a material terms of this Lease: No sale or consumption of alcohol outside the premises; Lessee shall not sell alcoholic beverages for retail purposes; Lessee shall provide security for the Premises, alcohol dispensing training for employees; Lessee shall provide no happy hour beverage promotions; Lessee shall provide exterior lighting as may be required under a conditional use permit. Receipts must for all sales, including alcohol sales shall be maintained by Lessee and provided to the City upon request. SECTION 4. RESERVATIONS, ENCUMBRANCES AND RIGHTS-OF-WAY (a) City expressly reserves all natural resources in, on, or two hundred fifty (250) feet under the Premises, including, without limitation, oil, coal, natural gas and other hydrocarbons, minerals, aggregates, timber and other geothermal resources, as well as the right to grant leases or other contractual arrangements in and over the 19-7761/207926 Page 3 of 51 Premises for the extraction of such natural resources. However, such leasing or other arrangement shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease. (b) City expressly reserves a right to enter upon the Premises with as much advance written, verbal or electronic notice as possible to Lessee for any reason associated with public health, safety or welfare, or for the protection of life, limb or property. In all other cases unless otherwise specifically set forth herein, City reserves the right for such entry but City shall give Lessee at least twenty-four (24) hours advance written, verbal or electronic notice. City shall have a right of reasonable access to the Premises across Lessee owned, controlled or occupied lands adjacent to the Premises, if any, for any purpose associated with this Lease. ( c) City expressly reserves the right to lease, convey, or encumber the Premises, in whole or in part, for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. In addition, Lessee agrees to subordinate the Lease to any existing or future City financing regarding the Premises or any portion thereof. Lessee also agrees to cooperate and provide any documentation necessary for City to obtain any such financing. (d) This Lease is subject to pre-existing contracts, leases, licenses, easements, encumbrances and claims affecting the Premises and it is made without warranty by City of title, condition or fitness of the land for the stated or intended use. SECTION 5. TIME OF ESSENCE Time shall be of the essence of this Lease and each and all of its terms, covenants or conditions in which performance is a factor. 19-77611207926 Page 4of51 SECTION 6. TERM This lease shall be for a term of ten (10) years commencing at 12:01 A.M. on the __ _ day of , 20 __ , and ending at 12:01 A.M. on , 2029 ~~~~~~~~ unless sooner terminated as herein provided. SECTION 7. CONDITIONS OF PREMISES AS IS The taking of possession of the Premises by Lessee shall, in itself, constitute acknowledgment that the Premises are in good and tenantable condition. Upon taking possession of the Premises, Lessee agrees to accept the Premises in their presently existing condition, "as is", and agrees that City shall not be obligated to make any alterations, additions or betterments thereto. SECTION 8. DURATION OF PUBLIC FACILITIES By entering into this Lease, City makes no stipulation as to the type, size, location or duration of public facilities (excluding the Premises), including, without limitation, any City parking lots to be maintained on property owned, controlled or occupied by City. SECTION 9. ADDITIONS, ALTERATIONS AND REMOVAL (a) No modifications, alterations or additions to the Premises, including, without limitation, construction of Improvements or changes to structural design, landscape design, or interior or exterior furnishings, shall be constructed or made by Lessee without Lessee first obtaining the prior written approval of City, which will not be unreasonably withheld. (b) Except as provided under this Lease, no alteration or removal of existing Improvements on or natural features of the Premises shall be undertaken without Lessee first obtaining the prior written approval of City. 19-7761/207926 Page 5 of 51 (c) Lessee's obligation to obtain City's prior written approval is separate and independent of Lessee's obligation to obtain any permits from City, such as, without limitation, a building permit. SECTION 10. CITY'S CONTRACT ADMINISTRATOR City's Deputy Director of Economic Development, or his or her designee, shall be City's Contract Administrator for this Lease with the authority to act on behalf of City for the purposes of this Lease, and all City approvals and notices required to be given herein to City shall be so directed and addressed. SECTION 11. RENT Upon issuance of a Certificate of Occupancy Lessee agrees to pay to City as rent (the "Rent") for the use and occupancy of the Premise a minimum base rent of $1,875 a month. In those months where the percentage of "Gross Sales" as defined in Section 12 below exceeds the monthly base rent, Lessee shall pay the percentage rent based on the following thresholds instead of the monthly base Rent: $0 -$100,000.00 of Gross Sales = 7.5%; $100,000.01 -$150,000.00 of Gross Sales = 9.5%; Over $150,000.00 of Gross Sales = 11.5%. Commencing on July 1 2024, in those months where the percentage of "Gross Sales" as defined in Section 12, exceeds the monthly base rent, Lessee shall pay the percentage rent based on the following thresholds: $0 -$100,000.00 of Gross Sales = 8.0%; $100,000.01 -$150,000.00 of Gross Sales = 10.0%; 19-7761/207926 Page 6of51 Over $150,000.00 of Gross Sales = 11.5%. Lessee shall pay the Rent monthly to City at the City Treasurer's Office, P.O. Box 711, Huntington Beach, California, 92648, or at such other place or places as City may from time-to- time designate by written notice delivered to Lessee. Lessee shall pay the Rent, which must be received by the City Treasurer within ten (10) calendar days after the end of the month for which the Rent is being paid, or on the next business day if the fifteenth day falls on a weekend or holiday. SECTION 11. LA TE CHARGE AND PENAL TY If the Rent is not received by the City Treasurer within ten (10) calendar days after the end of the month for which the Rent is being paid, or the next business day if the twentieth day falls on a weekend or holiday, Lessee shall pay the following late charge and penalty: (1) a late charge of ten percent (10%) shall be applied to any outstanding balance after any payment hereunder is due but unpaid; and (2) one and a half percent (1 Yi%) penalty per month shall be added for each month the Rent is due but unpaid. With respect to any other payments required by Lessee, a one and a half percent (1 Yi%) penalty per month shall be added for each month such payment hereunder is due but unpaid. SECTION 12. GROSS SALES DEFINED For the purpose of this Lease, the term "Gross Sales" shall mean the total price of all merchandise, food and beverages, including alcoholic beverages, or services sold or rendered, or equipment rented, in, on, or from the Premises by Lessee, or anyone contracting with Lessee, including, without limitation, its agents or sublessees (collectively or individually, "Lessee Party(ies )"), whether wholesale or retail, whether for cash or on credit, and if on credit whether 19-7761/207926 Page 7 of51 or not paid, and whether in exchange for any other product, commodity, service, commercial paper or forbearance, and shall include, without limitation, the following: (a) All revenues, receipts, commissions or proceeds from on-line sales by Lessee, including group rental of the Premises and/or from all public telephones, vending, weighing and all other machines owned, operated, or leased to or by Lessee Party(ies) in, on, or from the Premises; (b) All revenues, receipts, commissions or proceeds from sales based on orders solicited or taken, in, on, or from the Premises for merchandise, food and beverages, including alcoholic beverages or services to be delivered or rendered off, or from sources outside, the Premises, including, without limitation, all orders taken in, on, or from the Premises although the orders may be filled elsewhere; ( c) All revenues, receipts, commissions or proceeds from the renting of equipment of any kind in, on, or from the Premises; and ( d) All revenues, receipts, commissions or proceeds generated from off site but delivered through the Concession. (e) All revenues, receipts, commissions or proceeds made by Lessee Party(ies) or their employees or others acting on their behalf for the rendition of services of any kind whatsoever, made in, on, or from the Premises. (f) All other revenues, receipts, commissions or proceeds generated by, arising or derived whatsoever from the use of the Premises or derived whatsoever from any business conducted in, on, or from the Premises. For purposes of computing the Gross Sales figure on which to calculate the Rent, the amount of Gross Sales shall start over at zero dollars on January 1 of each year. If the Lease 19-77611207926 Page 8 of 51 commences on any date other than January 1, the Gross Sales calculation begins from such commencement date and runs through December 31 of such Lease commencement year. SECTION 13. GROSS SALES EXCLUSIONS Gross Sales shall not include the following items, and Lessee may deduct such items from Gross Sales to the extent they have been included therein or have been included in a prior computation of Gross Sales on which the Rent has been paid under this Lease to City: (a) Any sales, excise or other taxes otherwise includable in Gross Sales and which become part of the total price of merchandise, food and beverages, or services sold or rendered, or equipment rented, in, on, or from the Premises where Lessee must account for and remit the taxes to the government entity or entities which impose them, but only if such taxes are added to the total price and collected from customers; (b) Any transfer of trade inventory from the Premises to the manufacturer or supplier from whom it was obtained by Lessee; (c) Sales of Trade Fixtures (as defined in Section 51 below); ( d) Sums and credits received in the settlement of claims for loss of or damage to trade inventory or Trade Fixtures; and ( e) Any sales resulting in a cash or credit refund to a customer in the ordinary course of business. SECTION 14. BOOKS AND RECORDS Lessee shall keep true and accurate books and records showing all of its business transactions in separate records of account for the Concession in a manner acceptable to City, and City and/or its designated representatives shall have the right, at all reasonable times, to 19-77 61 /207926 Page 9of51 inspect such books and records including, without limitation, State of California sales or use tax returns or other State return records, and Lessee hereby agrees that all such records and instruments shall promptly be delivered and made available to City and/or its designated representatives within thirty (30) days ofreceiving written request therefor. Lessee shall furnish to City and/or its designated representatives copies of its quarterly California sales and use tax returns at the time each is filed with the State of California. The books and records shall show the total amount of Gross Sales made each calendar month in, on, or from the Premises and any exclusions listed in Section 13 above. All sales and charges shall be recorded by means of cash registers which display the amount of the transaction certifying the amount recorded. The register shall be equipped with devices which log in daily sales totals and which shall record on tapes the transaction numbers and sales details. At the end of each day the tape shall record the total sales for that day. Lessee agrees to maintain on the Premises, or another location subject to the prior written approval of City, all records, books of account and cash register tapes, showing, or in any way pertaining to the Gross Sales made in, on, or from the Premises during such calendar month, including, without limitation, State of California sales or use tax returns or other State tax returns, for a period of five (5) years following the close of each calendar month. SECTION 15. STATEMENT OF GROSS SALES/AUDIT At the time specified in Section 10 of this Lease for the payment of the Rent, Lessee shall deliver to City a true and accurate statement signed by Lessee or by an authorized employee of Lessee showing the total Gross Sales and any exclusions listed in Section 13 above made during the preceding calendar month and the amount of the Rent then being paid calculated on such Gross Sales pursuant to this Lease. The acceptance by City of any monies paid to City by Lessee 19-7761/207926 Page IO of 51 as the Rent, as shown by any statement furnished by Lessee, shall not be construed as an admission of the accuracy of the statement, or of the sufficiency of the amount of the Rent payment, and City shall be entitled to review the adequacy of such payment as set forth herein. By the end of each January, Lessee shall deliver to City a year-end statement showing the total amount of Gross Sales made in, on, or from the Premises in each month of the preceding year, the total of any exclusions, the total Rent paid to City for each of those months, all with year-end totals. City may at any time within three (3) years after receiving the year-end statement, at its sole cost and expense, cause all records, books of account and cash register tapes for the year purportedly covered by the statement, to be audited by City or an accountant selected by City. Lessee shall, within thirty (30) days of receiving written notice of City's desire for such an audit, deliver and make available all such records, books of account and cash register tapes to City or its designated representative for City's use in the audit and/or for copying. If the audit discloses that Gross Sales were understated and/or exclusions overstated, Lessee shall immediately pay the additional Rent, together with a penalty thereon from the date it was. due at the penalty rate set forth in Section 11 above. Furthermore, Lessee shall promptly on demand reimburse City for the full cost and expense of the audit should the audit disclose that the questioned year-end statement understated Gross Sales (including an overstatement of exclusions) or the Rent by any amount greater than Two Hundred Fifty Dollars ($250.00). City further reserves the right to examine and audit all such records, books of account and cash register tapes at any time during the three (3) year period following the expiration or termination of this Lease. In addition, City shall have the right to enter upon the Premises during business hours and with two (2) hours advance written, verbal or electronic notice to Lessee to perform any audit or inspection function with respect to this Lease. 19-7761/207926 Page 11 of 51 Lessee, its bookkeeper and/or accountant shall respond to all questions and inquiries of City with respect to the books, records, statements and other documentation being examined, and shall promptly provide other further documentation as may be required by City. City is entitled to take statements by deposition under oath of Lessee, its officers, bookkeepers and/or accountants or any person who prepared the books, records, statements and other documentation required to be provided by Lessee under this Lease. SECTION 16. SECURITY DEPOSIT Upon execution hereof, Lessee shall pay and/or maintain at all times during the entire term of this Lease or any renewals or extensions thereof or during any holdover period, a security deposit with City in a sum of not less than Two Thousand Five Hundred Dollars ($2,500.00) to guarantee all of Lessee's obligations, liabilities, duties and responsibilities under the Lease, including, without limitation, the repair and maintenance of the Premises as provided herein. Such deposit shall be in the form of a cash bond or an assignment of certificate of deposit (the "CD") or savings account to City, and shall be provided to the City Treasurer. The form of any such security deposit shall be approved by the City Attorney and the City Treasurer. No interest shall accrue on cash deposits to the benefit of Lessee, but interest shall accrue on a CD or savings account and shall be paid to Lessee under the terms of the CD or savings account. Lessee shall send a copy of each renewal of the CD to the City Treasurer to ensure that City has the records of each active deposit account. SECTION 17. USE OF DRINK SPONSOR Lessee shall comply with any exclusivity agreement which the City may have with a drink sponsor. This exclusivity shall not apply to third-party rentals that bring their own drink products. 19-7761/207926 Page 12 of 51 SECTION 18. QUALITY OF SALES, RENTALS AND SERVICES Lessee, at its sole cost and expense, shall equip, operate, manage and maintain the Premises and Concession and shall keep the same equipped and maintained in a manner acceptable to City during the entire term of this Lease or any renewals or extensions thereof or during any holdover period. It is the intent of City that the Concession's services be provided in a manner to meet the needs of the visiting public, and should City deem the Concession's hours of operation and/or food, merchandise,' services or rentals inadequate to meet such needs, City may require Lessee to make such changes requested by City in writing. Lessee shall not use or permit the Premises to be used, in whole or in part, during the entire term of this Lease or any renewals or extensions thereof or during any holdover period for any purpose other than as herein set forth, without the prior written consent of City. Except as permitted in advance in writing by City, all foods and beverages, including alcoholic beverages, shall be sold in disposable paper or plastic containers. No pull-top cans or styrofoam containers are to be vended or dispensed from the Premises unless pre-approved in writing by City. Lessee, wherever feasible, shall eliminate the use of non-recyclable containers and plastics. City may from time to time review the items sold and containers or utensils used or dispensed by Lessee. City reserves the right to prohibit the sale or use of non-recyclable containers or plastics. City in its sole discretion reserves the right to prohibit Lessee's sale, provision or rental of any item or service rendered or performed, which it deems objectionable or offensive, beyond the scope deemed necessary for proper service to the public, inappropriate for sale, provision or rental by the Concession, or of inferior quality. 19-7761/207926 Page 13 of 51 SECTION 19. INDEMNIFICATION, DEFENSE AND HOLD HARMLESS AGREEMENT Lessee hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising out of or in connection with (1) the use or occupancy of the Premises by Lessee, its officers, employees or agents, or (2) the death or injury of any person or the damage to property caused by a condition of the Premises, or (3) the death or injury of any person or the damage to property caused by any act or omission of Lessee, its officers, employees or agents, or (4) any failure by Lessee to keep the Premises in a safe condition, or (5) Lessee's (or Lessee's agents and/or sub lessees, if any) performance of this Lease or its failure to comply with any of its obligations contained in this Lease by Lessee, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of City. Lessee shall hold all Trade Fixtures, personal property and trade inventory on the Premises at the sole risk of Lessee and save City harmless from any loss or damage thereto by any cause whatsoever, except such loss or damage which was caused by the sole negligence or willful misconduct of City. Lessee will conduct all defense at its sole cost and expense and City shall approve selection of Lessee's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by Lessee. 19-7761/207926 Page 14 of 51 SECTION 20. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE Lessee acknowledges awareness of Section 3700 et seq. of the California Labor Code, which requires every employer to be insured against liability for workers' compensation. Lessee covenants that it shall comply with such provisions prior to the commencement of this Lease. Lessee shall obtain and furnish to City workers' compensation and employers' liability insurance in amounts not less than the State statutory limits. Lessee shall require all sublessees and contractors to provide such workers' compensation and employers' liability insurance for all of the sub lessees' and contractors' employees. Lessee shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employers' liability insurance and Lessee shall similarly require all sublessees and contractors to waive subrogation. SECTION 21. GENERAL PUBLIC LIABILITY INSURANCE In addition to the workers' compensation and employers' liability insurance and Lessee's covenant to defend, hold harmless and indemnify City, Lessee shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage against any and all claims arising out of or in connection with the Premises. This policy shall indemnify Lessee, its officers, employees and agents, while acting within the scope of their duties, against any and all claims arising out of or in connection with the Premises, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000.00) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($2,000,000.00) for the Premises. This policy shall name City, its officers, elected or appointed 19-7761/207926 Page 15 of 51 officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Lease shall be deemed excess coverage and that Lessee's insurance shall be primary and non-contributory. Under no circumstances shall said above-mentioned insurance contain a self-insured retention, or a "deductible" or any other similar form of limitation on the required coverage. SECTION 22. PROPERTY INSURANCE Lessee shall provide before commencement of this Lease and shall obtain and furnish to City, at Lessee's sole cost and expense, property and fire insurance with extended coverage endorsements thereon, by a company acceptable to City authorized to conduct insurance business in California, in an amount insuring for the full insurable value of all Improvements, Trade Fixtures, personal property whether or not owned or leased by Lessee, and all trade inventory in or on the Premises against damage or destruction by fire, theft or the elements. This policy shall contain a full replacement cost endorsement naming Lessee as the insured and shall not contain a coinsurance penalty provision. The policy shall also contain an endorsement naming City as an Additional Insured. The policy shall contain a special endorsement that such proceeds shall be used to repair, rebuild or replace any such Improvements, Trade Fixtures, personal property whether or not owned or leased by Lessee, and all trade inventory so damaged or destroyed; and if not so used, such proceeds (excluding any insurance proceeds for Trade Fixtures, personal property whether or not owned or leased by Lessee, and trade inventory, but only to the extent the insurance proceeds specifically cover those items) shall be paid to City. The policy shall also contain a special endorsement that if the Premises are so destroyed triggering the parties' ability to terminate as set forth in Section 52 (Destruction) below, and either party elects to terminate the Lease, the entire amount of any insurance proceeds (excluding such proceeds for Trade 19-7761/207926 Page 16 of 51 Fixtures, personal property whether or not owned or leased by Lessee and trade inventory, but only to the extent the insurance proceeds specifically cover those items) shall be paid to City. The proceeds of any such insurance payable to City may be used, in the sole discretion of City, for rebuilding or repair as necessary to restore the Premises or for any such other purpose(s) as City sees fit. This policy shall also contain the following endorsements: (a) The insurer shall not cancel or reduce the insured's coverage without (30) days prior written notice to City; (b) City shall not be responsible for premiums or assessments on the policy. A complete and signed certificate of insurance with all endorsements required by this Section shall be filed with City prior to the execution of this Lease. At least thirty (30) days prior to the expiration or termination of any such policy, a signed and complete certificate of insurance showing that coverage has been renewed shall be filed with City. SECTION 23. LIQUOR LIABILITY INSURANCE Tenant shall provide, keep and maintain in full force and effect liquor liability insurance in the amount of not less than One Million Dollars ($1,000,000.00). SECTION 24. INCREASE IN AMOUNT OF GENERAL PUBLIC LIABILITY AND PROPERTY INSURANCE Not more frequently than once every two (2) years, if, in the sole opinion of City, the amount and/or scope of general public liability insurance in Section 21 above, liquor liability insurance coverage in Section 23, and/or property insurance coverage in Section 22 above at that time is not adequate, Lessee shall increase the insurance coverage as reasonably required by City. 19-7761/207926 Page 17 of 51 SECTION 25. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencement of this Lease, Lessee shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Lease; these certificates shall: (a) provide the name and policy number of each carrier and policy; (b) shall state that the policy is currently in force; and ( c) shall promise to provide that such policies shall not be canceled or modified without thirty (30) days' prior written notice of City; however ten (10) days' prior written notice in the event of cancellation for nonpayment of premium, which 10-day notice provision shall not apply to property insurance in Section 22 above. Lessee shall maintain the foregoing insurance coverages in force during the entire term of the Lease or any renewals or extensions thereof or during any holdover period. The requirement for carrying the foregoing insurance coverages shall not derogate from Lessee's defense, hold harmless and indemnification obligations as set forth in this Lease. City or its representatives shall at all times have the right to demand the original or a copy of any or all the policies of insurance. Lessee shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. SECTION 26. INSURANCE HAZARDS Lessee shall not commit or permit the commission of any acts on the Premises nor use or permit the use of the Premises in any manner that will increase the existing rates for, or cause the cancellation of any liability, property, or other insurance policy for the Premises or required by 19-7761/207926 Page 18 of 51 this Lease. Lessee shall, at its sole cost and expense, comply with all requirements of any insurance carrier providing any insurance policy for the Premises or required by this Lease necessary for the continued maintenance of these policies at reasonable rates. SECTION 27. MAINTENANCE OF PREMISES City's maintenance responsibilities of the Premises shall be limited to maintaining all sewers and drain lines, and roofs. Except as set forth in the preceding sentence, Lessee agrees to maintain the Premises in good order and repair, at Lessee's sole cost and expense, during the entire term of this Lease or any renewals or extensions thereof or during any holdover period, pursuant to the City's maintenance standards. A copy of the quarterly evaluation summary sheet setting forth the City's maintenance checklist is attached as Exhibit "B'', and incorporated herein by this reference. Except as provided above, Lessee, at its sole cost and expense, shall perform any maintenance and repairs including, without limitation, facility maintenance and landscape maintenance on the Premises. Lessee's obligation includes, without limitation, maintaining and operating the Premises and adjacent areas to a distance of not more than fifty (50) feet of the lease line area in a clean, safe, wholesome and sanitary condition free of trash, garbage or obstructions of any kind and in compliance with any and all present and future laws, general rules or regulations of any governmental authority now, or at any time during the entire term of this Lease or any renewals or extensions thereof or during any holdover period, in force, relating to sanitation or public health, safety or welfare, or for the protection of life, limb or property; and Lessee shall at all times faithfully obey and comply with all laws, rules and regulations applicable thereto. Lessee, at its sole cost and expense, shall remedy without delay any defective, dangerous or unsanitary 19-7761/207926 Page 19 of 51 condition(s) caused by Lessee or anyone related thereto. Provided, however, that Lessee shall have no obligation to repair or maintain sewer lines or respond to sewer leaks. Lessee shall paint, stain or seal the Premises' exterior surfaces a minimum of every three (3) years, unless City determines in its sole discretion that such work shall be done on a more frequent basis. All exterior metal surfaces, except the roof, shall be painted with rust resistant paint no less than once every other year. Any and all graffiti on the Premises shall be removed by Lessee, at its sole cost and expense, within forty-eight ( 48) hours of Lessee receiving notice thereof or of Lessee becoming aware of such graffiti. In addition, with or without notice from City, Lessee shall, at its sole cost and expense, repair and/or replace any broken glass within forty-eight ( 48) hours of its becoming broken, regardless of cause, except by fault of City. Except as provided above for graffiti and broken glass, Lessee, at its sole cost and expense and with or without notice from City, shall repair and/or replace all damage or destruction to the Premises caused by act( s) of vandalism as soon as possible but in no event later than fourteen (14) days after the date such damage or destruction occurred. Lessee, at its sole cost and expense, shall repair and/or replace all other damage or destruction to the Premises, regardless of cause, except by fault of City. Lessee shall comply with all written notices served by City with regard to the care and maintenance of the Premises. Any written notice hereunder shall specify the work to be done and the period of time deemed to be reasonably necessary for completion of such work. Should Lessee fail to commence making the necessary repairs within seven (7) days after receiving such notice, or within twenty-four (24) hours of the glass becoming broken in the case of broken glass, or fail to diligently proceed to complete the necessary repairs within the period of time reasonably specified in the City's notice, or within forty-eight ( 48) hours of the glass becoming 19-7761/207926 Page 20of51 broken in the case of broken glass, or within the forty-eight ( 48) hour time period for removing graffiti, or within fourteen (14) days of the date that the vandalism damage or destruction occurred, City shall proceed to cause the required work to be performed, and Lessee shall promptly reimburse City for the cost of labor and materials thereof and pay City a penalty on such costs at the penalty rate set forth in Section 11 above from the date the costs were incurred by City to the date they are reimbursed to City by Lessee. Lessee hereby expressly waives the right to make repairs at the expense of City and the benefit, if any, of the provisions of Sections 1941 and 1942 of the California Civil Code relating thereto. SECTION 28. RENT CREDIT City in its sole discretion may provide Lessee a rent credit if Lessee undertakes (1) any repair or maintenance obligation of City under this Lease, (2) any work including any Lessee improvements the City in its sole discretion deems necessary and appropriate, (3) Lessee submits to the City a set of approved construction plans and schedule of performance regarding the completion of tenant improvements. Prior to Lessee undertaking any such work, City must agree in writing to the amount of the rent credit as well as and procedures for completion of the work to be done by Lessee and the cost of such work. City and Lessee acknowledge that the Lessee owes the City the amount of Twenty One Thousand Two Hundred Twenty Four Dollars and Sixty Cents ($21,224.60). Lessee and City have a agreed to a payment plan (the "Payment Plan") in which the Lessee shall make twenty- three (23) monthly installments of $922.80. The Payment Plan shall paid in accordance with Section 11 of this Lease and is subject to penalties. The Lessee also acknowledges that failure to abide by the Payment Plan as set forth in this Lease will result in a material default of this Lease 19-77 61 /207926 Page 21of51 as set forth in Section 36 and the City is entitled to remedies subject to Sections 38 and 39 of said Lease. SECTION 29. DAMAGE, DESTRUCTION OR NUISANCE Lessee shall not commit or permit the commission by others of any damage or destruction of, on, or to the Premises and/or Concession. Lessee shall not maintain, commit or permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section 3480 of the California Civil Code on the Premises; and Lessee shall not use or permit the use of the Premises for any unlawful purpose. SECTION 30. TAXES This Lease may create a possessory interest in property, which is subject to taxation. In the event that such possessory interest is created, Lessee agrees to be subject to the payment of and to pay taxes levied on such interest, at its sole cost and expense. Lessee also agrees to pay, at its sole cost and expense, before they become delinquent all other lawful taxes, assessments or charges, which at any time may be levied by any governmental agency including, without limitation, the State, County, City or any tax or assessment levying body upon any interest in this Lease, or any possessory right which Lessee may have in or to the Premises, by reason of Lessee's use or occupancy thereof or otherwise, as well as all taxes, assessments, and charges on Trade Fixtures, personal property and trade inventory in, on, or about the Premises. Upon request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment. Lessee shall comply with all laws, regulations and ordinances regarding the collection of taxes due a government agency. 19-7761/207926 Page 22of51 SECTION 31. PAYMENT OF OBLIGATIONS Lessee shall promptly pay, at its sole cost and expense, before they become delinquent, any and all bills, debts, liabilities and obligations incurred by Lessee in connection with Lessee's occupation and use of the Premises and/or operation of the Concession. Upon request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment. SECTION 32. UTILITIES AND SERVICES Lessee shall be responsible for the payment of all utility charges, including, without limitation, gas, electricity, water, telephone service, cable TV service, and the furnishing of all necessary refuse and garbage containers and the removal and disposal of all rubbish, refuse and garbage resulting from the operation of the Premises and/or the Concession. All such rubbish, refuse and garbage removed shall be disposed of in accordance with applicable laws and local ordinances. Pursuant to Health Department regulations, Lessee must maintain an active refuse account at all times for the duration of this Agreement. All trash containers and/or trash bins shall be adequately screened and located to the satisfaction of City. For the purposes of this Section, sewage disposal shall be construed as a utility. All such charges shall be paid by Lessee directly to the provider of the service and shall be paid as they become due and payable. Upon request, Lessee shall promptly furnish to City satisfactory evidence establishing such payment. SECTION 33. BUSINESS LICENSE Lessee shall maintain a business license from City during the entire term of this Lease or any renewals or extensions thereof or during any holdover period. SECTION 34. SIGNS, ADVERTISING AND APPROVAL OF NAME Lessee follow all entitlement processes for all signage requests. However, City shall have the right to approve in its sole discretion and at any time require Lessee to change or remove 19-7761/207926 Page 23of51 signs, names, placards, decorations or advertising placed on, or inscribed, painted or affixed upon the Premises. Should City approve of any sign, name, placard, decoration or advertising, Lessee shall maintain the same at all times during the entire term of this Lease or any renewals or extensions thereof or during any holdover period in good appearance and repair. All signs, names, placards, decorations or advertising must comply with all requirements of any governmental authority with jurisdiction. SECTION 35. NO ASSIGNING, SUBLEASING OR ENCUMBERING (alcohol) (a) Prohibition of Assignment. The parties acknowledge that City is entering into the Lease in reliance upon the experience and abilities of Lessee and its principals. Consequently, Lessee shall not voluntarily assign, encumber or otherwise transfer its interest in the Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Lessee's authorized representatives) to occupy or use all or any part of the Premises without the prior written consent of City, which consent may be withheld at the City's sole discretion. Provided, however, that City's consent shall not relieve Lessee from any and all of its obligations, liabilities, duties or responsibilities under this Lease. Any assignment, encumbrance, occupation or use, sublease or other transfer without such consent shall be voidable and, at City's sole discretion, shall constitute a material breach of this Lease. (b) Consent to Transfer. City's consent to any assignment, encumbrance, occupation or use, sublease or other transfer is subject in part to Lessee providing City with evidence satisfactory to City that the proposed, assignee, encumbrancer, occupier or user, sublessee or other transferee has suitable financial strength, experience 19-77 61/207926 Page 24 of 51 and character for operation and control of the Premises and the Concession and that the use of the Premises by the proposed assignee, encumbrancer, occupier or user, sublessee or other transferee is consistent with that specified herein, and is commercially reasonable. Any proposed assignee, encumbrancer, occupier or user, sublessee or other transferee shall agree to abide by the terms and conditions of the Lease including, without limitation, all the obligations, liabilities, duties and responsibilities of Lessee, and other conditions imposed upon it pursuant to law. An approval by City to one assignment, encumbrance, occupation or use, sublease or other transfer shall not be deemed to be an approval to any other assignment, encumbrance, occupation or use, sublease or other transfer. SECTION 36. TERMS BINDING ON SUCCESSORS All the terms, covenants and conditions of this Lease shall inure to the benefit of and be binding upon the parties and their successors, including, without limitation, their assignees, encumbrancers, occupiers or users, sublessees or other transferees. The provisions of this Section shall not be deemed as a (1) waiver of any of the prohibitions and conditions against assignments, encumbrances, occupations or uses, subleases or other transfers hereinbefore set forth, or (2) City's consent thereto. If more than one lessee is a party to this Lease, the obligations of the lessees shall be joint and several. Even if City's consent is not required, Lessee shall immediately provide City with written notice of any, assignment, encumbrance, occupation or use, sublease or other transfer. SECTION 37. DEFAULT The occurrence of any one or more of the following events shall constitute a material default and breach ("Default") of this Lease by Lessee: 19-77 61 /207926 Page 25 of 51 (a) Lessee's failure to make any payment of the Rent or other payment required to be made by Lessee at the time required for payment under this Lease. (b) Lessee's failure to obtain or maintain the insurances and/or the security deposit as required under this Lease. ( c) Lessee's vacating or abandonment of the Premises during the entire term of this Lease or any renewals or extensions thereof or during any holdover period. Closure of the Concession for more than a combined total of one hundred eighty (180) days in a calendar year, minus any days of closure of the Concession caused by City, shall be deemed an abandonment of the Premises. ( d) Lessee's violation of Section 19 (Indemnification, Defense and Hold Harmless Agreement), Section 35 (No Assigning, Subleasing or Encumbering), Section 48 (Hazardous Substances), Section 49 (Nondiscrimination), Section 50 (Entertainment Prohibited), Section 63 (Conflict of Interest) or Section 65 (Compliance with Laws). (e) The insolvency of Lessee as evidenced by a receiver being appointed to take possession of all or substantially all of Lessee's assets located at or on the Premises or of Lessee's interest in this Lease, or the making by Lessee of a general arrangement or assignment for the benefit of creditors, or Lessee's filing a petition in bankruptcy, whether voluntary or involuntary, or the attachment, execution or the judicial seizure of substantially all of Lessee's assets located at or on the Premises or of Lessee's interest in the Lease. (±) Lessee's failure to observe or perform any other term, covenant, obligation, duty, responsibility or condition of this Lease to be observed or performed by Lessee 19-77 61 /207926 Page 26 of 51 when such failure shall continue for a period of thirty (30) days after City's giving written notice to Lessee, or such earlier period if specifically set forth in this Lease~ however, if the nature of such failure is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in Default if Lessee notifies City of the length of the additional time required to cure and receives City's written approval of the additional time required, which approval will not be unreasonably withheld, and commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion during such additional time period approved by City. SECTION 38. REMEDIES (a) Cumulative Nature of Remedies. In the event of any Default by Lessee, City shall have the remedies described in this Section in addition to all other rights and remedies provided by law or equity, to which City may resort cumulatively or in the alternative: (1) Reentry without Termination. City may at City's sole discretion reenter the Premises, and, without terminating the Lease, at any time and from time to time rel et the Premises or any part or parts of them for the account and in the name of Lessee or otherwise. Any reletting may be for the remainder of the term or for a longer or shorter period. City may in City's sole discretion eject all persons or eject some and not others or eject none. In addition, City may in its sole discretion remove some or all of the Trade Fixtures, personal property and trade inventory from the Premises. City may store such removed Trade Fixtures, personal property and trade 19-7761/207926 Page 27of51 inventory in a public warehouse or other location at the sole cost, expense and risk of Lessee, and for the account of and in the name of Lessee. City shall apply all rents from reletting as follows: first, to the payment of reasonable expenses (including brokers' commissions) paid or incurred by or on behalf of City in recovering possession, placing the Premises in good condition, and preparing or altering the Premises for reletting; second, to the reasonable expense of securing new subtenants; third, to the fulfillment of Lessee's covenants to the end of the term. City may execute any leases or subleases made under this provision either in City's name or in Lessee's name and City shall be entitled to all rents from the use, operation or occupancy of the Premises. Lessee shall nevertheless pay to City on the dates specified in this Lease the equivalent of all sums required of Lessee under this Lease, plus City's expenses, less the proceeds of any reletting or attornment. (2) Termination. In the event of a Default by Lessee, City may at City's sole discretion terminate this Lease by giving Lessee written notice of termination. In the event City terminates this Lease, City may recover possession of the Premises (which Lessee shall immediately surrender and vacate upon demand) and remove all persons therefrom, and Lessee shall comply with, without limitation, Sections 57 and 58 below. City also shall be entitled to recover as damages all of the following: (A) The worth at the time of the award of any unpaid Rent or other charges which have been earned at the time of termination; 19-7761/207926 Page 28of51 19-7761/207926 (B) The worth at the time of the award of the amount by which the unpaid Rent (each month's Rent would be calculated as the average Rent for that same month in the preceding years, or if Lessee did own/operate the Concession in the preceding years, then each month's Rent would be calculated as the average of all months Lessee owned/operated the Concession) and other charges which would have been earned after termination until the time of the award exceeds the amount of the loss of such rental and other charges that Lessee proves could have been reasonably avoided; (C) The worth at the time of the award of the amount by which the unpaid Rent (each month's Rent would be calculated as the average Rent for that same month in the preceding years, or if Lessee did not own/operate the Concession in the preceding years, then each month's Rent would be calculated as the average of all months Lessee owned/operated the Concession) and other charges for the balance of the term after the time of the award exceeds the amount of the loss of such rental and other charges that Lessee proves could have been reasonably avoided; (D) Any other amount necessary to compensate City for the detriment proximately caused by Lessee's failure to perform its obligations, liabilities, duties or responsibilities under this Lease; and Page 29of51 (E) At City's sole discretion, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable California law. As used in Sections 38(a)(2)(A) and (B) above, the "worth at the time of the award" shall be computed by allowing interest at the rate of twelve percent (12%) per annum. As used in Section 38(a)(2)(C) above, the "worth at the time of the award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1 % ). The amount recoverable by City pursuant to Section 38(a)(2)(D) above shall include, without limitation, any costs or expenses incurred by City in maintaining or preserving the Premises after such Default. (3) Use of Personal Property. City may at City's sole discretion use the Trade Fixtures, personnel property and/or trade inventory located on, about or appurtenant to the Premises without compensation and without liability for use or damage, or store them in a public warehouse or other location at the sole cost, expense and risk of Lessee, and for the account of and in the name of Lessee. (b) Election of Remedy. The election of one remedy for any one item shall not foreclose an election of any other remedy for another item or for the same item at a later time. (c) City's Right to Cure Lessee's Default. Upon continuance of any Default, City may in its sole discretion, but is not obligated to, cure such Default at Lessee's sole cost and expense. If City at any time, by reason of such Default by Lessee, 19-77 61 /207926 Page 30of51 pays any sum or does any act, the sum paid by City plus the reasonable cost of performing such act, together with a penalty thereon at the penalty rate set forth in Section 11 above from the date the costs were incurred or the act performed by City to the date they are reimbursed to City by Lessee, shall be due as additional rent not later than five (5) days after service of a written demand therefor on Lessee, including reasonably detailed documentation of the amount owed. No such payment or act shall constitute a waiver of Default or of any remedy for Default or render City liable for any loss or damage resulting from any such act. ( d) Waiver of Rights. Lessee hereby waives any right of redemption or relief from forfeiture under California Code of Civil Procedure Sections 1174 or 1179, or under any other present or future law, in the event Lessee is evicted or City takes possession of the Premises by reason of any Default by Lessee hereunder. ( e) Other Rights of City. No act of City, including, without limitation, City's entry on the Premises, efforts to relet the Premises, or maintenance of the Premises, shall be construed as an election to terminate this Lease unless a written notice of such intention is given to Lessee by City or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding if City elects to continue the Lease in full force and effect after a Default by Lessee and to relet the Premises, City may at any time after such reletting elect to terminate this Lease for any such Default. SECTION 39. CUMULATIVE REMEDIES The remedies given to City in this Lease shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this 19-7761/207926 Page 31 of 51 Lease. City shall have the right to exercise any other right or remedy which City may have at law or in equity including, without limitation, City's rights under the unlawful detainer laws. SECTION 40. WAIVER OF DEFAULT The waiver by City of any Default by Lessee of any of the provisions of this Lease shall not constitute a continuing waiver or a waiver of any subsequent Default by Lessee either of the same or another provision of this Lease. SECTION 41. CITY'S DEFAULTS/LESSEE'S REMEDY In the event City fails to perform any material obligation of City under the Lease within ninety (90) days after receiving written notice from Lessee specifying the nature of such default, or, if the nature of City's obligation is such that more than ninety (90) days are required for its performance, if City fails to commence such performance within such ninety (90) day period and thereafter diligently prosecute the same to completion, then City shall be in default of this obligation. If City's default materially interferes with Lessee's use of the Premises for its intended purpose, Lessee shall have the option to terminate the Lease by giving City at least sixty ( 60) days' written notice of its intent to terminate. In such a situation, Lessee must still comply with all of its obligations, liabilities, duties and responsibilities under the Lease, including, without limitation, paying any Rent due up to the time of termination and surrendering the Premises pursuant to Sections 57 and 58 below. This remedy of termination is Lessee's sole and exclusive remedy for a default by City. SECTION 42. CONSENT When City's consent/approval is required under this Lease, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 19-7761/207926 Page 32 of51 SECTION 43. HOLDOVER Should Lessee hold over and continue in possession of the Premises after expiration or termination of this Lease, with or without the express prior written consent of City, Lessee's continued occupancy of the Premises shall constitute a month-to-month tenancy, subject to all the terms and conditions of this Lease, at a monthly rent of one hundred ten percent (110%) of the previous calendar year's annual Rent divided by twelve (12) (or the average monthly Rent for all months Lessee owned/operated the Concession if Lessee has owned/operated the Concession for less than one (1) year) or that month's actual Rent, whichever is greater, and shall not constitute a renewal or extension of the Lease term. SECTION 44. WAIVER OF CLAIMS Lessee hereby waives any claim against City, its officers, elected or appointed officials, employees, agents or volunteers for damage or loss caused by any suit or proceeding directly or indirectly attacking the validity of this Lease, or any part thereof, or caused by any judgment or award in any suit or proceeding declaring this Lease null, void or voidable, or delaying the Lease or any part thereof from being carried out. SECTION 45. INSPECTION OF PREMISES Upon at least twenty-four (24) hours advance written, verbal or electronic notice given by City to Lessee, Lessee shall permit City or City's agents, representatives or employees to enter the Premises at all reasonable times for the purpose of inspecting, investigating and surveying the Premises to determine whether Lessee is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect City's interest in the Premises or to perform City's duties under this Lease. City also shall have the right in its sole discretion to do any and all work of any nature necessary for the preservation, maintenance and 19-7761/207926 Page 33of51 operation of property owned, controlled or occupied by City. Lessee shall be given reasonable notice when such work becomes necessary, and Lessee shall adjust the operation of the Concession in such a manner that City may proceed expeditiously. SECTION 46. CITY'S RIGHT TO LEASE BUYOUT City shall have the right at any time during the entire term of this Lease or any renewals or extensions thereof to buyout the remaining years of the Lease and Lessee's interest in this Lease based upon the following buyout formula: Average of the most recent two (2) years (preceding the date of the notice of buyout) annual Gross Sales under this Lease or a prior lease multiplied by a twelve and one-half percent (12. 5%) profit margin multiplied by the number of years remaining on the Lease discounted by twelve and one- half percent (12. 5%) to present value. For example: The annual Gross Sales for the most recent two (2) years of the Concession are $335,000.00 and $350,000.00. If City gives Lessee notice of its buyout intention in September, the preceding two (2) years would be the preceding twenty-four (24) months ending in August. There are three (3) years remaining in the Lease. The average of the Gross Sales of the most recent two (2) years is $342,500.00 ($335,000.00 + $350,000.00/2). The profit margin is 12.5% of the most recent two (2) year average which is $42,812.50 ($342,500.00 x 0.125). The profit margin is then discounted at the rate of 12.5% to present value over the remaining years of the Lease: 19-7761/207926 Page 34 of 51 Year 1: $42,812.50 I 1.125 = $38,055.56 Year 2: $42,812.50 I l.125 I 1.125 = $33,827.16 Year 3: $42,812.50I1.125I1.125I1.125 = $30,068.59 All of the discounted cash flows for the remaining years of the Lease are totaled and the result is the buyout price of the Lease. In this case, the City's buyout price is $101,951.31. If Lessee has owned/operated the Concession for less than two (2) years, the City's buyout price will be the greater of (1) the amount calculated under the Gross Sales formula above or (2) all reasonable and provable start-up costs, which start-up costs will be determined by City in its sole discretion. The annual Gross Sales figure on which to calculate the buyout amount shall be calculated as follows: The average monthly Gross Sales for all months up to twenty-three (23) months converted into an annual Gross Sales figure. For example, if City decides to buyout the Lease of a new Lessee who has owned/operated the Concession for fifteen (15) months, with an average monthly Gross Sales figure of Five Thousand Dollars ($5,000.00), the annual Gross Sales figure for the option to buyout would be Sixty Thousand Dollars ($60,000.00). For purposes of this calculation, a Lessee shall not be considered a new lessee if the Concession was previously owned/operated by a lessee, whose assignment, encumbrance, occupation or use, sublease or other transfer to Lessee did not require City approval in Section 34 above. At City's sole option, City shall have the right, but not the obligation, to purchase any or all of Lessee's Trade Fixtures (defined in Section 52 below), based on the appraised fair value market of the Trade Fixtures. 19-7761/207926 Page 35 of 51 If City desires to purchase any or all of Lessee's Trade Fixtures, City shall select an appraiser to provide an appraisal of such Trade Fixtures. If Lessee disagrees with City's appraisal, Lessee, at its sole cost and expense, shall select another appraiser to provide an appraisal. If City disagrees with Lessee's appraisal, City shall select another appraiser to perform an appraisal. In such case, the parties agree that the price for the Trade Fixtures will be the average of these three (3) appraisals. All appraisers must be members in good standing in the American Society of Appraisers. Notwithstanding the foregoing, at any time, City may elect not to purchase any or all of Lessee's Trade Fixtures. Upon City's request, Lessee shall provide City with proof of lien free, good and merchantable title to any such Trade Fixtures City desires to purchase. Lessee shall protect, defend, indemnify, and hold harmless City, its officers, elected and appointed officials, employees, agents and volunteers from and against any and all liens, claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising out of or in connection with Lessee's fraud, omission or negligence regarding any purchase of Lessee's Trade Fixtures by City. Lessee will conduct all defense at its sole cost and expense and City shall approve selection of Lessee's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by Lessee. Lessee acknowledges and agrees that this Lease buyout option of City has been negotiated at arms-length and does not constitute nor does Lessee construe this to be an act of eminent domain or inverse condemnation. In the event City exercises this buyout option, Lessee waives any and all claims of loss of business goodwill and relocation rights or benefits. Lessee 19-7761/207926 Page 36 of 51 also shall immediately surrender the Premises as set forth herein and comply with, without limitation, Sections 57 and 58 below. SECTION 47. PHOTOGRAPHY Lessee acknowledges and agrees that City may grant permits to third parties engaged in the production of still and motion pictures and related activities to take photographs or videos of or on the Premises when such permission shall not interfere with the primary business of Lessee, all without providing Lessee with notice or requiring consent by Lessee. SECTION 48. HAZARDOUS SUBSTANCES Lessee represents and warrants that its use or occupation of the Premises shall not generate any Hazardous Substance (as defined below in this Section), and it shall not store or dispose on the Premises nor transport to or over the Premises any Hazardous Substance during the entire term of this Lease or any renewals or extensions thereof or during any holdover period. The foregoing restrictions shall not be deemed to restrict or prohibit the use by Lessee of ordinary cleaning products as customarily used in Lessee's ordinary course of business at the Concession, provided that Lessee complies with all provisions of law as to the use, storage and disposal of such products. Lessee further agrees to clean up and remediate any such Hazardous Substance on the Premises, and agrees to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising out of or in connection with any such Hazardous Substance and any damage, loss, or expense or liability resulting from any such Hazardous Substance including, without limitation, all attorney's fees, costs and penalties incurred as a result thereof except any 19-77 61 /207926 Page 37 of 51 release caused by the sole negligence or willful misconduct of City. Lessee will conduct all defense at its sole cost and expense and City shall approve selection of Lessee's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by Lessee. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as a hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term, by any Federal, State or local environmental law, regulation or rule presently in effect or promulgated in the future, as such law, regulation or rule may be amended from time to time; and it shall be interpreted to include, without limitation, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. SECTION 49. NONDISCRIMINATION Lessee and its employees shall not discriminate because of race, religion, color, ancestry, sex, age, national origin or physical handicap against any person by refusing to furnish such person any accommodation, facility, rental, service or privilege offered to or enjoyed by the general public. Nor shall Lessee or its employees publicize the accommodation, facilities, rentals, services or privileges in any manner that would directly or inferentially reflect upon or question the acceptability of the patronage of any person because of race, religion, color, ancestry, sex, age, national origin or physical handicap. In the performance of this Lease, Lessee shall not discriminate against any employee or applicant for employment, because of race, religion, color, ancestry, sex, age, national origin or physical handicap. Lessee shall take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, religion, color, 19-7761/207926 Page 38 of 51 ancestry, sex, age, national origin or physical handicap. Such action shall include, without limitation, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including, without limitation, apprenticeship. Lessee shall post in conspicuous places, available to all employees and applicants for employment, notices setting forth the provisions of this Section. Lessee shall permit access to its records of employment, employment advertisements, application forms, and other pertinent data and records by City, the State Fair Employment Practices Commission or any other agency with jurisdiction over these matters, for the purpose of investigation to ascertain compliance with this Section. City may determine a violation of this Section to have occurred upon receipt of a final judgment having that effect from a court in an action to which Lessee was a party, or upon receipt of a written notice from the State Fair Employment Practices Commission or other government agency with jurisdiction over these matters that it has investigated and determined that Lessee has violated the Fair Employment Practices Act or other applicable discrimination law and has issued an order which has become final, or obtained an injunction. In the event of violation of this Section, City shall have the right to terminate this Lease, and any loss of revenue sustained by City by reason thereof shall be borne and paid for by Lessee, at its sole cost and expense. SECTION 50. ENTERTAINMENT PROHIBITED Notwithstanding anything to the contrary, live entertainment in, on, or from the Premises is expressly forbidden, unless expressly permitted in writing by City in advance. 19-7761/207926 Page39of51 SECTION 51. LIENS Lessee shall keep the Premises free and clear from any and all liens, including, without limitation, mechanics' or materialmens' liens, claims and demands for work performed, materials furnished, or operations conducted on or about the Premises or by reason of any use or occupancy by Lessee, or any person claiming under Lessee. When applicable, Lessee shall cause a notice of nonresponsibility to be posted and recorded pursuant to California Civil Code Section 3094. SECTION 52. INSTALLATION AND REMOVAL OF TRADE FIXTURES Lessee shall have the right during the entire term of this Lease or any renewals or extensions thereof, at Lessee's sole cost and expense, to install or affix in, to, or on the Premises any machinery, equipment and other objects (the "Trade Fixtures"), for use in Lessee's trade or business as Lessee may deem advisable. Any and all such Trade Fixtures that can be removed without structural damage to the Premises shall, subject to Section 58 below, remain the property of Lessee and may be removed by Lessee at any time prior to the expiration or termination of this Lease, provided Lessee repairs any damage caused by the removal. Upon execution of this Lease and every anniversary, Lessee shall provide City with a list of all Trade Fixtures on the Premises. SECTION 53. DESTRUCTION Should the Premises be partially destroyed, this Lease shall continue in full force and effect, and Lessee, at Lessee's sole cost and expense, shall complete the work of repairing and restoring the Premises to their prior condition providing such work can be accomplished under all applicable governmental laws and regulations within one hundred eighty ( 180) days. Should the Premises be so far destroyed that in City's reasonable judgment they cannot be repaired or 19-7761/207926 Page 40 of 51 restored to their former condition within one hundred eighty (180) days, City shall give Lessee notice of such determination in writing and each party may, in that party's sole discretion: (a) Continue this Lease in full force and effect in which case Lessee shall repair and restore, at Lessee's sole cost and expense, the Premises to their former condition; or (b) Terminate this Lease by giving the other party thirty (30) days' written notice of such termination within sixty (60) days after the date that City gives Lessee notice that the Premises cannot be repaired or restored to their former condition within one hundred eighty (180) days. In the event that either party elects to terminate this Lease, the entire amount of any insurance proceeds (excluding such proceeds for Trade Fixtures, personal property whether or not owned or leased by Lessee and trade inventory, but only to the extent that the insurance proceeds specifically cover those items) shall be paid to City. The proceeds of any such insurance payable to City may be used, in the sole discretion of City, for rebuilding or repair as necessary to restore the Premises or for any other such purpose( s) as City sees fit. In addition, if Lessee elects to terminate the Lease, Lessee must still comply with all of its obligations, liabilities, duties and responsibilities under the Lease, including, without limitation, paying any Rent due up to the time of termination and surrendering the Premises, pursuant to Sections 57 and 58 below. In the event of the damage or destruction of Improvements, Trade Fixtures and/or personal property located on the Premises not giving rise to a termination of this Lease, Lessee shall, at its sole cost and expense, replace and repair the same as soon as reasonably possible to permit the prompt continuation of Lessee's business at the Premises. 19-77611207926 Page 41of51 SECTION 54. NO ABATEMENT OF RENT DURING REPAIR WORK The Rent shall not be abated for the time Lessee is prevented from using the whole or a portion of the Premises. In addition, Lessee shall not be excused from the payment of taxes, insurance or any other obligations for the time Lessee is prevented from using the whole or a portion of the Premises. SECTION 55. EMINENT DOMAIN If, during the term of this Lease or any renewals or extensions thereof or during any holdover period, City's real property (whether held by City in fee simple, an easement interest or otherwise) and/or the Premises is taken in eminent domain, the entire award (that is, all forms) of compensation, other than as provided herein, shall belong to and be paid to City. In the event of condemnation, Lessee shall be entitled to an award of only the following forms of compensation, if any, from the condemning authority: compensation for loss of business goodwill; compensation for the value of any of Lessee's Trade Fixtures; compensation for the value of any of Lessee's personal property; compensation for the value of any of Lessee's trade inventory; and compensation for relocation benefits as authorized by law. All other forms of compensation, such as, for example, but not by way of limitation, any bonus value of Lessee's interest in this Lease, shall belong to and be paid to City. In the event of condemnation, unless Lessee is allowed by the condemning authority to continue its operations on the Premises, the Lease shall terminate on the earliest of the following dates: the date the condemning authority obtains a prejudgment order for possession; the date title to the Premises vests in the condemning authority; or the date when Lessee is required by the condemning authority to cease its operations. 19-7761/207926 Page 42 of 51 SECTION 56. RELOCATION AND ASSISTANCE, BUSINESS GOODWILL AND LEASEHOLD BONUS VALUE Upon expiration or termination of this Lease for any reason, including, without limitation, if City exercises its Lease buyout option, but excluding eminent domain, Lessee shall not be entitled to any relocation rights or benefits, business goodwill or bonus value attributable to this Lease, and Lessee expressly waives any claim to the same. SECTION 57. QUITCLAIM DEED Upon expiration or termination of this Lease as provided for herein, including, without limitation, in the event City exercises its Lease buyout option, Lessee shall execute and deliver to City within thirty (30) days thereof, a good and sufficient quitclaim deed to the rights and interests of Lessee in the Premises and the Lease. Should Lessee fail or refuse to deliver to City this quitclaim deed, City may record in the Orange County Recorder's Office a written notice reciting the failure of Lessee to execute and deliver this quitclaim deed. The date of recordation of this notice by City shall be conclusive evidence against Lessee and all persons claiming under Lessee of the expiration or termination of this Lease and any rights or interests of Lessee in the Premises and/or the Lease. Lessee also agrees to execute, acknowledge, and deliver to City any other instrument requested by City as necessary to perfect City's right, title and interest to the Premises. SECTION 58. RESTORATION AND SURRENDER OF PREMISES/TITLE TO IMPROVEMENTS On expiration or termination of this Lease, including, without limitation, in the event City exercises its Lease buyout option, Lessee shall, without compensation to Lessee, promptly surrender and deliver the Premises to City in as good condition as such were at the 19-7761/207926 Page 43 of 51 commencement date of this Lease, reasonable wear and tear excepted. Lessee also shall, without compensation to Lessee, surrender all Improvements to City in good condition and repair, ordinary wear and tear excepted, free and clear of all liens and encumbrances. Lessee also shall remove all Trade Fixtures, personal property and trade inventory. City may in its sole discretion accept all or any portion of the Premises, as then improved with Improvements and no sum whatsoever shall be paid to Lessee or any other person; or City may require Lessee to remove all or any portion of such Improvements, at Lessee's own risk and cost and expense; or City may itself remove or have removed all or any portion of such Improvements, at Lessee's own risk and cost and expense. If required by City to do so, in removing any such Improvements, Lessee shall restore the Premises as nearly as possible to the conditions existing prior to their installation or construction. All such removal and restoration shall be to the satisfaction of City and shall be completed within thirty (30) days of the expiration or termination of this Lease; provided, however, that Lessee shall be considered a holdover tenant (pursuant to Section 42 above) after expiration or termination of the Lease until the time Lessee completes this removal and restoration work, including, without limitation, the removal of any Trade Fixtures, personal property and trade inventory left on the Premises. In addition, any Trade Fixtures, personal property or trade inventory left on the Premises after the expiration of this 30-day period, regardless of cause, shall be deemed abandoned by Lessee. In City's sole discretion, it may choose to do one or more of the following: ( 1) take any or all of such Trade Fixtures, personal property and trade inventory as City property; (2) store any or all of such Trade Fixtures, personal property and trade inventory in a public warehouse or other location at the sole cost, expense and risk of Lessee, and for the account and in the name of Lessee; or (3) dispose of any or all of such Trade Fixtures, personal property and trade inventory without any liability to 19-77611207926 Page 44of51 Lessee. In addition, Lessee's indemnification, hold harmless and defense obligations set forth in this Lease shall apply to such Trade Fixtures, personal property and/or trade inventory, and to City's actions with respect thereto. SECTION 59. FORCE MAJEURE -UNA VOIDABLE DELAYS Should the performance of any act required by this Lease to be performed by either City or Lessee be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability not the fault of the party required to perform the act, the time for performance of the act shall be extended for a period equivalent to the period of delay and performance of the act during the period of delay shall be excused. Provided, however, that nothing contained in this Section shall excuse the prompt payment of the Rent or other consideration by Lessee as required by this Lease or the performance of any act rendered difficult solely because of the financial condition of the party, City or Lessee, required to perform the act. SECTION 60. CITY'S OPTION TO CLOSE THE PREMISES City may close the Premises without liability and without advance notice to Lessee therefor at any time as City in its sole discretion deems necessary for the protection of life, limb or property, or for public health, safety or welfare purposes, or upon reasonable notice to effect any repair, remodeling or rebuilding deemed necessary by City in its sole discretion. The length of time of any closing of the Premises by City longer than two (2) weeks during a period when the Concession would otherwise be open shall extend the term of the Lease by the same amount of time. If this occurs, Lessee and City shall memorialize this extension in writing. 19-77 61 /207926 Page 45 of 51 SECTION 61. DELIVERIES OF SUPPLIES City may establish the days and times deliveries of supplies may be made and advise Lessee in writing thereof. SECTION 62. PARKING Parking lots adjacent to the Premises are intended for all park users. City will work with Lessee to identify a specific number of spaces for restaurant purposes on given days and times. SECTION 63. CONFLICT OF INTEREST Lessee warrants and covenants that no official or employee of City, nor any business entity in which an official or employee of City is interested, (1) has been employed or retained by Lessee to solicit or aid in the procuring of this Lease; or (2) shall be employed by Lessee in the performance of this Lease without the immediate written divulgence of such fact to City. In the event City determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of City, Lessee, upon request of City, shall terminate such employment immediately. For breaches or violation of this Section, City shall have the right both to terminate this Lease without liability and, in its discretion, recover the full amount of any such compensation paid to such official, employee or business entity. No official or employee of City shall have any financial interest in this Lease in violation of the applicable provisions of the California Government Code. SECTION 64. NOTICE Unless specifically providing for verbal or electronic notice, all notices, certificates, or other communications required to be given hereunder shall be in writing and made in the following manner, and shall be sufficiently given and deemed received when (a) personally delivered; or (b) three (3) business days after being sent via United States certified mail -return receipt requested; or 19-7761/207926 Page 46of51 ( c) one ( 1) business day after being sent by reputable overnight courier, m each case to the addresses specified below; provided that City and Lessee, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent: CITY: City of Huntington Beach ATTN: Director of Community Services 2000 Main Street, P. 0. Box 190 Huntington Beach, CA 92648 SECTION 65. COMPLIANCE WITH LAWS LESSEE: Kathy May's Restaurant, Inc. Attention: Dawn Carrion 8566 Colusa Circle #901A Huntington Beach, CA 92646 Lessee, at its sole cost and expense, shall comply with all statutes, ordinances, regulations and requirements of all governmental entities, including, without limitation, Federal, State, county or municipal, relating to Lessee's use and occupancy of the Premises and/or operation of the Concession whether such statutes, ordinances, regulations and requirements be now in force or hereinafter enacted. This Lease is expressly subject to the laws, regulations and policies of City. Lessee shall deliver to City a copy of any notice from any governmental entity received by Lessee regarding any alleged violation of law regarding the Lease, Premises or the Concession or from any person allegedly entitled to give notice under any conditions, covenants, or restrictions binding or affecting the Premises. The judgment of any court of competent jurisdiction, or the admission by Lessee in a proceeding brought against Lessee by any government entity, that Lessee has violated any such statute, ordinance, regulation or requirement shall be conclusive as between City and Lessee and shall be grounds for termination of this Lease by City. SECTION 66. INTERPRETATION OF THIS LEASE The language of all parts of this Lease shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of 19-77611207926 Page 47of51 this Lease is held by an arbitrator or court of ·competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Lease. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Lease, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Lease which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. SECTION 67. SURVIVAL Terms and conditions of this Lease, which by their sense and context survive the expiration or termination of this Lease, shall so survive. SECTION 68. MODIFICATION No waiver or modification of any language in this Lease shall be valid unless in writing and duly executed by both parties. SECTION 69. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Lease are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Lease. 19-7761/207926 Page 48 of 51 SECTION 70. BROKERS Each party warrants to and for the benefit of the other that it has had no dealings with any real estate broker or other agent (attorneys excepted) in connection with the negotiation or making of this Lease. SECTION 71. INDEPENDENT CONTRACTOR Lessee is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. Lessee shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for Lessee and its officers, agents and employees and all business licenses, if any, in connection with the Lease and/or any services to be performed hereunder. SECTION 72. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Lease or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. SECTION 73. LEGAL SERVICES SUBCONTRACTING PROHIBITED Lessee and City agree that City is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. Lessee understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable for payment of any legal services expenses incurred by Lessee. 19-7761/207926 Page 49 of 51 SECTION 74. GOVERNING LAW This Lease shall be governed and construed in accordance with the laws of the State of California. SECTION 75. DUPLICATE ORIGINAL The original of this Lease and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who signed it. SECTION 76. ENTIRETY The parties acknowledge and agree that they are entering into this Lease freely and voluntarily following extensive arm's length negotiations, and that each has had the opportunity to consult with legal counsel prior to executing this Lease. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party, or anyone acting on that party's behalf, which are not embodied in this Lease, and that that party has not executed this Lease in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Lease. The Lease, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Lease, the Premises, the leasing of the Premises to Lessee, or the lease term created under this Lease and supercede all prior understandings and agreements, whether oral or in writing between the parties respecting the subject matter hereof. 19-7761/207926 Page 50 of51 KATHY MAY'S RESTAURANT, INC. By: ___________ _ print name ITS: (circle one) Chairman/President/Vice President AND By: ___________ _ print name ITS: (circle one) Secretary/Chief Financial Officer/ Asst. Secretary -Treasurer REVIEWED AND APPROVED: City Manager CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk INITIATED AND APPROVED: 19-7761/207926 Page 51 of 51 KATHY MAY'S RESTAURAN1: INC. print name ITS: (circle one) Chairma~ice President AND By:~~~~~ ITS: (circle ont!:~hiefFinancial Officer/ Asst. Secretary -Treasurer REVIEWED AND APPROVED: City Manager CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk INITIATED AND APPROVED: Deputy Director of Economic Development APPROVED AS TO FORM: City Attorney lJ11/ 19-7761/207926 Page 51of51 ----·----------------------~ Kathy May's Restaurant Huntington Central Park (6622 Lakeview Drive) SITE MAP ·-------------- CITY OF HUNTINGTON BEACH Quarterly Evaluation Kathy May's Restaurant SUM1\1ARY SHEET Date Inspected: ______ _ Kathy May Restaurant, Inc. Representative: ------------- Phone: (714) 514-1622 FAX: ---------------~ Area OK Needs Attention GENERAL Doors & Locks Exterior Walls Graffiti Removal Interior Walls Removal of Bird Droppings Restrooms (Plumbing) Roof Rust Signage Trash Trim Windows Patio Area Other COMMENTS: Exhibit "B" City of Huntington Beach File #:19-731 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:David Kiff, Interim City Manager PREPARED BY:Thomas M. Herbel, PE, Acting Director of Public Works Subject: Adopt Resolution No. 2019-46 establishing Permit Parking District “Y” affecting residents on Marken Lane between Slater Avenue and Holland Drive Statement of Issue: Residents on Marken Lane between Slater Avenue and Holland Drive have petitioned the City to establish a residential permit parking district, Permit Parking District “Y” in Huntington Beach. Financial Impact: The provisions of Huntington Beach Municipal Code Chapter 10.42 requires that the residents choosing to participate in a residential permit parking district pay a proportionate share of the cost to establish or amend the district making the district cost neutral to the City. Typical costs include, but are not limited to, installation of signs, curb markings, which are initially funded in the General Fund Signs and Marking business unit 10085302, and staff time to issue permits, which are funded in the General Fund Transportation Management business unit 10085301. The total cost for this parking district is estimated at $850 or $47 per address. Recommended Action: Adopt Resolution No. 2019-46, “A Resolution of the City Council of the City of Huntington Beach Establishing Permit Parking District “Y” Within the City of Huntington Beach.” Alternative Action(s): Deny the recommended action. Public Works Commission Action: None required. Analysis: Residents on Marken Lane between Slater Avenue and Holland Drive submitted a petition requesting permit parking due to commuter vehicle parking impacts and other associated issues. The area is located north of Slater Avenue east of Beach Boulevard and is shown on Attachment 1. The requesting residents expressed that these concerns occur daily preventing the use of on-street parking for themselves and guests. In addition to the parking impacts, other specific issues include City of Huntington Beach Printed on 7/10/2019Page 1 of 3 powered by Legistar™ File #:19-731 MEETING DATE:7/15/2019 moving of trash bins on collection day to create parking areas, parking too close to driveways, and late night noise. The requested permit parking restrictions are midnight to 6 am, every day, including holidays. Following procedures in Municipal Code Chapter 10.42, Permit Parking Districts, staff validated the petition, determined the concerns of the residents require further consideration, and examined the proposed boundaries. Due to the potential parking issues moving to nearby areas, staff expanded the proposed permit parking district area to include Marken Lane between Holland Drive and Friesland Drive, and Holland Drive between Marken Lane and Waal Circle. Ballots were sent to the affected addresses to vote on the proposal. Municipal Code Chapter 10.42 requires a minimum of 75% of the property units to be favor of the parking district to move the request for further consideration. Residents on Marken Lane between Slater Avenue and Holland Drive (petitioned street) voted 83% in support of permit parking. Residents in the expanded area (Marken Lane between Holland Drive and Friesland Drive, and Holland Drive between Marken Lane and Waal Circle) received a total of 19% in support of permit parking. Due to the low interest for permit parking in the expanded area it was removed from consideration for permit parking. The requested permit parking district is the original petitioned street, properties fronting Marken Lane between Slater Avenue and Holland Drive and is shown on Attachment #2. As required by code, staff investigated the conditions on Marken Lane to examine the parking conditions and related concerns. Field observations and discussions with the residents demonstrated that the street experiences recurring parking impacts from commuter vehicles, with the most significant impacts occurring between the late evening and early morning hours, and on the weekends. Although the noise and trash bin moving issues were not observed by staff, these concerns were mentioned by several of the residents. Due to the observed parking conditions and discussions with the residents, staff believes findings can be made showing that commuter vehicle parking unreasonably and regularly interferes with the use of available on-street parking for residents and their guests, and causes other related disturbances. These findings are consistent with requirements of the Municipal Code as a basis for establishing permit parking. The number of addresses that would comprise the permit parking district is eighteen (18). Notices were sent to the affected properties and properties within 500 feet of the proposed district boundaries indicating the date and time of the City Council meeting. Public Works Commission Action: None required. Environmental Status: The project is categorically exempt from CEQA. Strategic Plan Goal: Enhance and maintain infrastructure. Attachments: 1.Vicinity Map City of Huntington Beach Printed on 7/10/2019Page 2 of 3 powered by Legistar™ File #:19-731 MEETING DATE:7/15/2019 2.Requested Permit Parking Map 3.Staff Evaluation 4.Resolution 2019-46 City of Huntington Beach Printed on 7/10/2019Page 3 of 3 powered by Legistar™ 1 | Page Proposed Permit Parking District - Marken Lane The requested residential permit parking street is Marken Lane between Slater Avenue and Holland Drive. The street is located north of Slater Avenue east of Beach Boulevard. A vicinity map of the location is shown in the diagram below. The residents are requesting parking restrictions between midnight to 6 a.m. every day, including holidays due to commuter vehicle parking impacts from apartments and duplexes south of Slater Avenue near Marken Lane and Holland Drive, and other related issues. In addition to the parking impacts, other specific issues include, moving of trash bins on collection day, parking too close or in 2 | Page front of driveways, and late night noise. Figure 1 shows the requested parking district street along Marken Lane north of Slater Avenue. Figure 1. Requested Permit Parking District on Marken Lane. Marken Lane Permit Parking Request Summary Public Works staff received a petition from residents on Marken Lane between Slater Avenue and Holland Drive requesting permit parking be established on the street. The reasons for the request are concerns with the availability of on-street parking for residents and their guests, cars parking in front of 3 | Page driveways, moving trash bins to uncollectable areas to obtain additional on-street parking, and late night noise from commuter vehicle parking on the street. As required by regulations of Municipal Code Chapter 10.42, Permit Parking Districts, staff reviewed and determined that the petition and request were valid. The requested boundaries were examined and a determination was made by staff to include properties on Marken Lane north of Holland Drive, and Holland drive from Marken Lane to Waal Circle to vote on the proposal. These streets may be impacted should parking restrictions be implemented on the first block of Marken Lane and gives an opportunity for these residents to be included in the parking district should interest exist. The code allows staff to modify the boundaries of the proposed parking district and to send notices to the additional residents as if included with the initial request. The considered permit parking district area as modified is shown on Figure 2. Figure 2. Streets Considered for Establishing Permit Parking 4 | Page Ballots were mailed to the property owners and residents to vote on the permit parking proposal. Per code, the property owner has initial opportunity to vote. In absence of the property owner vote, the vote of the tenant of the property will be counted. Results of the returned ballots are summarized in Table 1 and shown in Figure 3. Table 1 - Voting Results for Permit Parking District Proposal Street Percent Voting “YES” for Permit Parking Marken Ln (Slater Av to Holland Dr) 83 % Marken Ln (Slater Av to Holland Dr) 19 % Holland Dr (Marken Ln to Waal Cir) 0 % Figure 3. Permit Parking Voting Results. 5 | Page Properties along Marken Lane between Slater Avenue and Holland Drive voted 83% in favor of the request, while Marken Lane between Holland Drive and and Friesland Drive voted 19% in support of permit parking. Holland Drive between Marken Lane and Waal Circle received no votes (0%) in support of permit parking. The Municipal Code requires a minimum of 75% of support for the permit parking district request to move forward for further consideration. Since the first block of Marken Lane was the only street section meeting the 75% support criteria with the other streets demonstrating minimal or no interest in permit parking, the proposed permit parking district request was determined to be Marken Lane from Slater Avenue to Holland Drive (the original request). Field survey of parking conditions: As part of the process for evaluating a residential permit parking district request, staff conducted field investigations of the area to examine the on-street conditions on Marken Lane. The following summarizes parking conditions from field reviews of the street. The days and times of the survey were based on suggestions from the residents. Field Survey 1: Wednesday, 6:30 am Marken Lane (Slater Av to Holland Dr) No. Parked Vehicles Parking Capacity Percent Occupancy East Side 10 15 67% West Side 9 14 64% Field Survey 2: Sunday, 7:00 am Marken Lane (Slater Av to Holland Dr) No. Parked Vehicles Parking Capacity Percent Occupancy East Side 14 15 93% West Side 13 14 93% Field Survey 3: Tuesday, 9:00 pm Marken Lane (Slater Av to Holland Dr) No. Parked Vehicles Parking Capacity Percent Occupancy East Side 12 15 80% West Side 11 14 79% 6 | Page Field Survey 4: Thursday, 5:00 pm Marken Lane (Slater Av to Holland Dr) No. Parked Vehicles Parking Capacity Percent Occupancy East Side 6 15 40% West Side 6 14 73% Analysis: Municipal Code Chapter 10.42 requires staff to determine whether commuter vehicle parking regularly interferes with the use of available on-street parking, or the unrestricted parking produces health, safety, or welfare concerns. Staff observed parking impacts during the late evening and early morning, consistent with discussions with Marken Lane residents. Another parking issue voiced by residents was vehicles parking in front of driveways even for brief periods of time. Although this condition was not observed by staff from the field visits, a few residents voiced their concern about this issue. The requested parking restriction times are midnight to 6 am which is consistent with the peak commuter vehicle demand periods, with on-street parking generally available and not impacted during regular working hours. Additionally, discussions with the residents regarding the commuter vehicle parking disturbances included issues with trash bins, late night noise, and littering. The residents complained about commuter vehicle occupants moving trash bins to uncollectable locations or parking too close to the bins to prevent them from being emptied on trash day. Although staff did not notice these disturbances on one observed trash collection day, the issue was repeated by discussions with several residents. Additionally, staff did not notice noise disturbances during the field visits, but the issue was repeated by several Marken Lane residents. One resident spoke of littering and trash on the street though not observed by staff during the field surveys. Photos of on-street conditions on Marken Lane are shown on the Page 7. Staff Recommendation: Based on the field observations and discussions with residents, staff is recommending establishing permit parking along Marken Lane from Slater Avenue to Holland Drive from midnight to 6 am every day, including holidays. Staff’s opinion is that criteria specified in Municipal Code 10.42 has been met 7 | Page for creating a new permit parking district for City Council consideration. The number of affected properties is eighteen (18). Photo 1. Typical On-Street Impacted Parking on Marken Lane after 7:00 P.M. Photo 2. Vehicle Parked Across Driveway on Marken Lane City of Huntington Beach File #:19-757 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Travis K. Hopkins, PE, Director of Public Works Subject: Adopt Resolution No. 2019-48 confirming reports of cost for weed abatement on private property within the City for the 2019 season Statement of Issue: In accordance with Chapter 8.16 Weed Abatement of the Huntington Beach Municipal Code, the Director of Public Works shall submit to the City Council a cost report of the actual costs incurred for the abatement of weeds on private properties. Financial Impact: A special assessment totaling $14,360.08 will be charged to the Orange County property tax roll and reimbursed to the City’s General Fund by the County of Orange as part of the ordinary collection process. Recommended Action: A)Adopt Resolution No.2019-48, “A Resolution of the City Council of the City of Huntington Beach Confirming the Report of the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2019 Season”; and, B)Direct that all charges listed thereon be certified to the Orange County 2019/20 Property Tax Roll. Alternative Action(s): Deny approval of the resolution and forego reimbursement to the City for the cost for weed abatement services performed on 29 properties. Analysis: Chapter 8.16 Weed Abatement of the Huntington Beach Municipal Code includes a provision for the removal of weeds on private property. In accordance with Section 8.16.010 Removal Required, "all City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-757 MEETING DATE:7/15/2019 persons owning any real property in the City are required to keep their property free from weeds… or other flammable materials that endangers the public safety by creating a fire hazard." If a property owner does not remove the weeds or flammable materials by a prescribed time, the City Council may order the Director of Public Works to do the work at the expense of the property owner. Pursuant to City Council direction on March 15, 2019, the City has cleared 29 such properties. The cost of the work totals $14,360.08 as reported on the attached 2019 Weed Abatement Cost Report in Exhibit A of the resolution. In accordance with Government Code Section 39575, these costs must be posted for public review prior to City Council approval. The costs were posted on the City Council Chamber bulletin board on Monday, July 8, 2019. Excepting objections to the cost report, the Director of Public Works recommends confirmation and approval of the 2019 Weed Abatement Cost Report. Environmental Status: Categorically exempt. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1.Resolution No.2019-48,“A Resolution of the City Council of the City of Huntington Beach Confirming Reports the Public Works Director Regarding the Cost for Weed Abatement on Private Property Within the City for the 2019 Season.” City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ City of Huntington Beach File #:19-759 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Chuck Adams, Interim Chief Financial Officer Subject: Adopt Resolution No. 2019-49 Approving the Certification of Special Assessments for Collecting Delinquent Civil Fines for Nuisance Violations of the Municipal Code Statement of Issue: Each year, the City records notices of special assessment against private property for the value of unpaid civil fines plus interest and penalties pursuant to Ordinance No. 3397 adopted by the City Council on June 15, 1998. City Council approval is required in order to meet the filing deadline with the County of Orange. Financial Impact: The total amount of assessments included in this action equals $193,196.35. Should these special assessments be placed on the property tax rolls and subsequently collected, these monies will be deposited in the General Fund in Fiscal Year 2019/20. Recommended Action: Adopt Resolution No.2019-49,"A Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments for Collecting Delinquent Civil Fines for Nuisance Violations of the Municipal Code." Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: In June 1998, the City Council adopted Huntington Beach Municipal Code Chapter 1.18 authorizing the issuance of administrative citations that impose civil fines for violation of the Municipal Code of the City of Huntington Beach. Pursuant to Section 1.18.150 of the Municipal Code, the City may certify certain fines, interest and penalties as delinquent and have them collected as special assessments against the real property involved. These assessments are limited to property related violations, wherein the fines exceed $250.00 cumulatively and are 60 days past due. In addition, all hearing or appeal rights of the cited persons have been exhausted. City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-759 MEETING DATE:7/15/2019 For each of the properties being considered for placement of a lien, staff verified that the owners received proper notification of the violations, citations, notification of the outstanding fines and fees due, and of the potential for placement of a lien on their property for non-payment of the outstanding fines and fees. Property owners also received invoices for the outstanding fines and fees and were provided the opportunity to make payment arrangements. Civil fines identified on Exhibit A to this Resolution have not been paid. The fine amounts will be levied against the properties, non-payment of which will incur penalties and will appear as an exception to the title on a title report at the time of transfer of the property. In addition, the fines will be reported to the County Tax Assessor for inclusion on the property tax bills. All assessments identified on “Exhibit A” represent fines, penalties, and interest related to code enforcement actions. Environmental Status: Not Applicable Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1.Resolution No.2019-49,“A Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments For Collecting Delinquent Civil Fines For Nuisance Violations Of The Municipal Code.” City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ RESOLUTION NO. 2019-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH CERTIFYING SPECIAL ASSESSMENTS FOR COLLECTING DELINQUENT CIVIL FINES FOR NUISANCE VIOLATIONS OF THE MUNICIPAL CODE WHEREAS, the City Council has adopted Huntington Beach Municipal Code 1.18, which provides that any violation of its Municipal Code shall constitute a nuisance; and Authorizes the issuance of administrative citations that impose civil fines upon persons who commit property-related nuisance violations of the Municipal Code; and Certain administrative citations have been issued for such property-related nuisance violations and civil fines imposed thereby have not been paid by the responsible persons who committed the Municipal Code violations; and Section 1.18.150 of the Municipal Code provides that any unpaid delinquent civil fines, interest and penalties may be recovered as such a nuisance abatement lien or special assessment against the property of the responsible person who is the owner of the property where the violations occurred; and To compel code compliance, the City may seek to abate the nuisance and collect the costs incmTed by means of a nuisance abatement lien and/or special assessment against the prope1ty where a prope1ty-related violation occurred as part of the nuisance abatement procedures authorized by Government Code Section 38773.5; and The City Council wishes to certify certain prope1ty-related nuisance abatement fines, interest and penalties as delinquent and have them collect as special assessments against the real prope1ty involved. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: I. The special assessments designated on Exhibit A, which is attached and incorporated herein by this reference, are hereby certified as being delinquent civil fines, interest and penalties owing to the City of Huntington Beach and qualified for collection as special assessments under Section 1.18.150 C. 2. The City Council as part of the City's nuisance abatement program orders that these delinquent fines, interest and penalties are to be collected as special assessments against the respective prope1ties shown on Exhibit A pursuant to the provisions of Municipal Code Section 1.18.150 C and Government Code Section 38773.5. 19-7749/207925 RESOLUTION NO. 2019-49 3. Pursuant to such authority, the Chief Financial Officer i s directed to take the re qu1 s1te steps for recording notice of such assessments against the respective properties in the prope1ty records of the County of Orange and for obtaining the collection of such assessments by the Tax Collector of the County of Orange. 4. The Chief Financial Officer is also authorized to take the necessary steps to have releases filed with the County Recorder when any such special assessments have been paid. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2019. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Manager B:~A, ~ ) L-k> ~St City AttoAey INITIATED AND APPROVED: ~~ l5" Interim_.Chief F in ancial Officer 19-7749/2 07925 2 I EXHIBIT A I Dates/Fine Amount(s)fTotal (w/late fees & Propertv Address Owner charges) Vlolation(s) APN Number 9581 Telhan Dr Huntington Robert Briganti 12/22/17 $500 17.10.050 (z) 153-153-30 Beach, CA 92646 1/30/18 $1,500 HB250 231.02 (E) 517/18 $3,000 CHSC 17920.3 (a)(14) 5/31/18 $4,000 CHSC 17920.3 (g) 6/27/18 $4,000 7/23/18 $4,000 10/17/18 $4,000 11115/18 $2,000 Total $26,319.43 19502 Surfdale Ln Diane Starbuck 5/4/16 $2,000 17.10.050 (p); 023-202-05 Huntiingtn Beach, CA 5/20/16 $4,000 17.10.050 (u); 92648 5/21/16 $4,000 8.48.180; 5/23/16 $4,000 CHSC 17920.3 (i) 5/23/16 $2,000 7/28/16 $4,000 7/29/16 $4,000 3/8/18 $500 3/21/18 $1,000 3/27/18 $2,000 3/29/18 $2,000 4/4/18 $2,000 4/20/18 $2,000 4/25/18 $2,000 4/26/18 $2,000 5/8/18 $ 2,000 Total $44,094.07 19092 Beach Bl #'s J, K, L & Phoung Pham 4/9/18 $1,000 17.10.050 (c) 153-041-28 M Huntington Beach, CA 4/9/18 $1,000 17.04.020 4/9/18 $500 HB250 204.18 CBC 111.1 7/11/18 $2,000 HB250 215.04CBC111,112.3 7/11/18 $2,000 7/11/18 $1,000 8/20/18 $1,000 8/20/18 $500 8/20/18 $1,000 8/22/18 $2,000 8/22/18 $2,000 8/22/10 $1,000 9/21/18 $500 11/15/18 $1,000 Total $27,769.46 17511 Griffin Ln #7 Bao Voung Ho 4/30/19 $4,000 17.10.050 (b) (1) (2) 939-271-30 Huntingtion Beach, CA 5/1/19 $4,000 17.04.020 92647 Total $B,07B.00 CHSC 17920.3 (a)(14) (B)(4)(6)(D) 2019-2020 Lien List detail Council 6-30-19.xls Dates/Fine Amount(s)ffotal (w/!ate fees & Violation(s) Prooertv Address Owner charges) APN Number 9442 Greenwich Dr Ann Lydia Pigage 4/19/17 $250 17.10.050 (z) 153-323-17 Huntington Beach, CA HB250 210.04 92646 5/1/17 $500.00 HB250 231.02 E1 5/5/17 $1,000 CHSC 17920.3 (I) 5/9/17 $250 5/11/17 $1,250 5/18/17 $500 5/19/17 $1,000 5/21/17 $500 5/25/17 $1,000 5/31/17 $1,000 6/3/17 $1,000 6ni2017 $1,000 6/9/17 $1,000 6/19/17 $1,000 5/20/19 $1,000 8/2/17 $1,000 8/9/17 $1,000 8/12/17 $1,000 8/13/17 $1,000 8/21/17 $1,000 9/5/17 $1,000 9/14/17 $1,000 9/26/17 $1,000 9/27/17 $1,000 9/30/17 $1,000 10/8/17 $1,000 10/12/17 $1,000 11/1/17 $1,000 3/8/18 $1,000 3/13/18 $1,000 3/23/18 $1,250 7/23/18 $1,000 8/23/18 $3,000 ' 8/24/18 $2,000 8/25/18 $2,000 8/26/18 $2,000 8/27/18 $2,000 8/28/18 $2,000 8/29/18 $3,000 8/30/18 $3,000 8/31/18 $2,000 9/1 /18 $2, 000 9/2/18 $3,000 9/3/18 $3,000 9/4/18 $3,000 9/5/18 $3,000 9/6/18 $2,000 9/7/18 $2,000 9/12/18 $3,000 Total $86,935.37 2019-2020 Lien List detail Council 6-30-19.xls City of Huntington Beach File #:19-761 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Adopt Resolution No. 2019-47 Approving the Withdrawal of the City from the Public Cable Television Authority Statement of Issue: On January 22,2019,the City Council voted to authorize the City Manager to issue a six (6)month Notice of Intent to Terminate Huntington Beach’s membership in the Public Cable Television Authority (PCTA)Joint Powers Authority (JPA)pursuant to Section 4 of the JPA Agreement.This Council Action will formalize the City’s Intent to Withdraw by adopting a Resolution Approving the Withdrawal of the City from the PCTA. Financial Impact: The City currently finances 67% of PCTA’s annual operating and Public, Educational, Governmental (PEG) Access budgets. Additionally, the City also comprises at least 67% of PCTA’s fund balances and reserves based on similar historical contributions. Upon withdrawal, the City will begin to collect 100% of the franchise and PEG fees generated from Huntington Beach cable subscribers directly from the cable providers. This amount is approximately $605,000 annually. These funds will be deposited into a restricted fund which the City will oversee to fund our own cable channel operations and programming. Recommended Action: Adopt Resolution No. 2019-47, “A Resolution of the City Council of the City of Huntington Beach Approving the Withdrawal of the City from the Public Cable Television Authority.” Alternative Action(s): Do not approve the Resolution and direct staff accordingly. Analysis: Beginning in April 2018,the City Council directed staff to analyze PEG access/outreach methods and the operations of the PCTA.Staff subsequently presented City Council with information related to the best practices of local government programming.This Study Session included the history of PCTA, an overview of their governance structure and finances,and a look at what the current trends are in City of Huntington Beach Printed on 7/10/2019Page 1 of 2 powered by Legistar™ File #:19-761 MEETING DATE:7/15/2019 an overview of their governance structure and finances,and a look at what the current trends are in TV -specifically PEG Channels.Following that Study Session,staff once again came back to Council in July 2018 and presented further findings about the existing operations of PCTA,reported back on PEG operations in neighboring jurisdictions,and provided an overview of the National Association of Telecommunications Officers and Advisors (NATOA)conference where staff learned about best practices and trends in the cable marketplace. What was gleaned from this deep dive was clear -the operations of the PCTA JPA had not kept pace with the emerging trends in the marketplace and were somewhat out of date.More and more people are “cutting the cord”or have never subscribed to cable TV in the first place and are using alternative means to view desired products (e.g. streaming services like Amazon Prime, Netflix and Hulu). On December 17,2018,staff presented an exit and transition plan to the City Council.Following that meeting,the City Council on January 22,2019 directed the City Manager to issue a Notice of Intent to Terminate from PCTA effective July 22,2019.Since January,staff has implemented the PCTA Exit and Transition Plan and has held weekly “Red Team”meetings comprised of staff from the City Manager’s Office,City Attorney’s Office,Information Services,Office of Business Development,and Finance to ensure a seamless transition.This Council Action is the culmination of six months of preparation to assume the functions of managing and running a public access channel. Environmental Status: Not Applicable Strategic Plan Goal: Enhance and maintain high quality City services Attachment(s): 1.Resolution No. 2019-47, “A Resolution of the City Council of the City of Huntington Beach Approving the Withdrawal of the City from the Public Cable Television Authority.” City of Huntington Beach Printed on 7/10/2019Page 2 of 2 powered by Legistar™ City of Huntington Beach File #:19-767 MEETING DATE:7/15/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Dave Kiff, Interim City Manager PREPARED BY:Marie Knight, Director of Community Services Subject: Approve for introduction Ordinance 4185 repealing Huntington Beach Municipal Code Section 2.101 relating to the dissolution of the Allied Arts Board (AAB) Statement of Issue: Approve for introduction Ordinance 4185 to repeal Section 2.101 of the Huntington Beach Municipal Code to dissolve the Allied Arts Board. Financial Impact: Not applicable. Recommended Action: Approve for introduction Ordinance 4185, “An Ordinance of the City of Huntington Beach Repealing Huntington Beach Municipal Code Section 2.101 Allied Arts Board.” Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: The Allied Arts Board (AAB) was established in 1979. Per Municipal Code Chapter 2.101, the purpose of the AAB is to encourage and promote cultural activities in the City and to act as an advisory body to the City Council on matters pertaining to arts and cultural affairs. The AAB currently meets once every other month. Past ongoing programs have included the twice-a-year art contest and awards ceremony recognizing the talents of our local artists and their commitment to the arts. At the time when the Allied Arts Board (AAB) was established, opportunities and advocacy for arts and culture were limited. However, since then, the number of local arts organizations has grown, as well as these groups’ presence and community involvement. Local artists now find their voice through the advocacy of several new organizations, including the Huntington Beach Art League, the Huntington Harbour Art Association, Las Damas (Sunset Beach), as well as the Huntington Beach Art Center’s Artist Council. Through the active involvement of our local artists in these groups, the prior City of Huntington Beach Printed on 7/10/2019Page 1 of 3 powered by Legistar™ File #:19-767 MEETING DATE:7/15/2019 mission and purpose of the establishment of the AAB has been shared by a variety of organizations whose purpose is to advocate for the arts. Furthermore, at the April 2, 2018, City Council Meeting, a Council Member Item was approved, which directed the City Manager to prepare a proposal for the creation of a comprehensive public art program and to review and make recommendations regarding the composition and mission of existing boards and commissions, including the AAB. Consequently, a Public Art Task Force was created, comprised of members from the AAB, Visit Huntington Beach, as well as City staff from Community Services, Community Development, and the City Manager’s Office. The Task Force looked at other cities in the region and how they handled public art, as well as the City’s public art component currently used in our development approval processes. The Task Force compiled several recommendations related to an overall Public Art Master Plan. One of those recommendations was that the Allied Arts Board be transitioned to a new entity with new roles and responsibilities pertaining to public art in Huntington Beach. Director Marie Knight met with the Allied Arts Board on July 30, 2018, to discuss this recommendation and the Board was 100% supportive of this direction. The Board members were excited about the opportunity to help shape this new venture in the city. At the August 6, 2018, City Council Study Session, Community Services Director Marie Knight and the Public Art Task Force presented a Public Art Master Plan Proposal for discussion. This proposal recommended that the AAB be transitioned to a new entity with new roles and responsibilities pertaining to public art in Huntington Beach. Additionally, a recommendation was made to engage an outside consultant to assist with finalizing the Plan, the creation of public art policies, creation of a “Call for Artist” program, and procedures and a community engagement process for the final plan. A Request for Proposal (RFP) has been conducted and staff is in the final steps of procuring consulting services, anticipating that the project will begin later this month. As of June 2019, there are currently six vacancies within the AAB due to term expirations and resignations, leaving three active members. Given that the AAB will soon transition into a new entity to work on Public Art, staff recommends that the City Council thank the AAB for its service and then dissolve the AAB at this time. Existing board members, two of whom have been members of the Task Force, would be invited to continue their participation in the existing Public Art Task Force, serving in a technical advisory capacity throughout the master plan and public engagement process. Staff has discussed this direction with members of the Allied Arts Board, and we are confident that there is a consensus of AAB members who agree with this direction. Environmental Status: Not applicable. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1.Ordinance 4185 repealing Section 2.101 relating to the Allied Arts Board City of Huntington Beach Printed on 7/10/2019Page 2 of 3 powered by Legistar™ File #:19-767 MEETING DATE:7/15/2019 2.Huntington Beach Municipal Code Section 2.101 Legislative Draft City of Huntington Beach Printed on 7/10/2019Page 3 of 3 powered by Legistar™ Chapter 2.101 ALLIED ARTS BOARD Note * Note: § 2.101.100 repealed by Ord. 3958-11/12. 2.101.010 Established There is hereby established the Allied Arts Board. (2385-7/79, 2904-7/87) 2.101.020 Purpose The purpose of the board shall be: A. To encourage and promote cultural activities in the City. B. To act as an advisory body to the City Council on matters pertaining to arts and cultural affairs. (2385-7/79, 2904-7/87) 2.101.030 Composition A. The board shall be composed of nine members appointed by the City Council by a majority vote. At least one member of the board shall be a member of the Art Center Foundation. Notwithstanding any other provision of this Municipal Code, there shall be no limit on the number of consecutive terms a board member may serve. The term of office of the board members shall be four years. Members shall hold no paid office or employment in the City government while serving on such board. If the City Council determines that a member be retired, it may so order and appoint a successor for the unexpired term of office of such retired member. Further, members shall be privileged to retire voluntarily from the board at any time, successors to be appointed in such cases for the unexpired terms of office, and also in the event of other occurring vacancies from whatever cause, by the City Council by a majority of votes. B. Regular attendance at meetings is required of all members to enable the board to discharge its duties. A member absent from three meetings in a fiscal year shall be deemed to have resigned from the board, and immediate notification shall be given to the Mayor and City Council of such vacancy. Under extreme situations, the board may consider a request for reconsideration. (2385-7/79, 2904-7/87, 3034-4/90, 3924-12/11) 2.101.040 Secretary The Director of Community Services, or his or her designee, shall serve as secretary to the board without the power to vote, and shall keep permanent minutes of the board meetings. Newly Revised Roberts’ Rules of Order (current edition) shall govern the procedure of the meetings of the board unless inconsistent with other provisions of this chapter. (2385-7/79, 2904-7/87) 2.101.050 Authority and Responsibilities The board shall act in an advisory capacity to the City Council in matters pertaining to the arts and cultural affairs by: A. Studying, interpreting and reporting to City Council on arts activities appropriate to the City. B. Encouraging financial support from the community for cultural programs and facilities. C. Reviewing the annual budget as presented to City Council. D. Performing other functions and cooperating with other civic organizations as required. E. May request and receive from City staff, via the secretary, reports and recommendations for action consistent with the purposes and functions set forth in this and preceding sections. (2385- 7/79, 2904-7/87) 2.101.060 Meetings—Quorum The board shall meet at such time and place as it may fix by resolution. All meetings shall be open to the public. A majority of the board shall constitute a quorum for the transaction of business. (2904-7/87) 2.101.070 Acceptance of Gifts The board may accept all gifts, devices, legacies or bequests, either real or personal property from any source, public or private. An acquisition by or dispersal to the board shall be administered through the Community Services Department of the City on authorization from this board. All acquisitions and/or dispersals shall be consistent with the purposes and functions of the board as set forth in Section 2.101.020 of this chapter. (2385-7/79, 2690-7/84, 2904-7/87, 3718-8/05) 2.101.080 Mayor—Ex Officio Member The Mayor may be an ex officio member of the board or may appoint a councilmember to act as an ex officio member. (2904-7/87) 2.101.090 Election of Officers The board shall elect from its members a chairperson and vice chairperson at the regular June meeting. Such officers shall serve for one year or until their successors are elected. The chairperson and vice chairperson may make and second motions and shall have a voice and vote in all proceedings. (2904-7/87) 2.101.110 Operating Policies Except as otherwise provided in this chapter, the board shall conform to the operating policy for boards and commissions as set forth in Chapter 2.100 of this Code. (2919-12/87)