HomeMy WebLinkAbout2021-02-16Minutes
City Council/Public Financing Authority
City of Huntington Beach
Tuesday, February 16, 2021
4 :00 PM -Virtual Meeting
6 :00 PM -Virtual Meeting
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 -Virtual Zoom Webinar
CALLED TO ORDER -4 :00 PM
ROLL CALL
Present:
Absent:
Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize
None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications that were rece ived by her office following distribution of the Council Agenda packet:
Study Session
#1 (21-157) PowerPoint communication titled Statewide Community Infrastructure Program -A
Program of the California Statewide Communities Development Authority submitted by
Ursula Luna-Reynosa , Director of Community Development.
#1 (21-157) PowerPoint communication titled Middle Income Workforce Housing Program submitted
by Ursula Luna-Reynosa, Director of Community Development.
PUBLIC COMMENTS PERTAINING TO STUDY SESSION I CLOSED SESSION ITEMS
(3 Minute Time Limit) -None
STUDY SESSION
1. 21-157 California Statewide Communities Development Authority (CSCDA) presentation
on the Statewide Community Infrastructure and Workforce Housing Programs
City Manager Oliver Chi introduced Community Development Manager Ursula Luna-Reynosa and
Deputy Director of Community Development Steve Holtz who introduced James Hamill, Managing
Director, California Statewide Communities Development Authority (CSCDA), Sean Rawson, Co-
Founder of Waterford Property Company, and Jon Penkower of C & C Development.
Council/PFA Regular Minutes
February 16, 2021
Page 2of16
Director Hamill, CSCDA, presented a PowerPoint communication entitled Statewide Community
Infrastructure Program, A Program of the California Statewide Communities Development Authority
with slides titled: What is the Statewide Community Infrastructure Program?, Who Uses SCIP?, SCIP
Participating Developers, Program Benefits, What Can be Financed through the Program?, Local
Agency Requirements, and SCIP Tasks and Responsibility Schedule .
Councilmember Peterson confirmed with Director Hamill that tax revenues are not impacted by this
program.
Councilmember Delgleize and Director Hamill discussed details regarding how the program is normally
implemented by the developer after reaching an agreement with a city . Director Hamill stated that
projects range from $500,000 to $8M, that most projects are single-family homes , and explained that
CSCDA has a $14M reserve .
City Manager Chi explained that Statewide Community Infrastructure Program (SCIP) is a totally
different program from the Middle Income Workforce Housing Program, but both are managed by
CSCDA as additional tools that can be used by builders and developers to help finance offsite costs
and Development Impact Fee (DIF) costs at an interest rate that will likely be less than their borrowing
costs to finance the overall project.
Director Luna-Reynosa explained that if Council chooses to offer this program to the development
community , the process would start with a resolution , and then the City would market the program ,
adding that the program is generally most effective with small to medium-sized projects.
Sean Rawson , Todd Cottle and Jon Penkower presented a PowerPoint communication entitled : Middle
Income Workforce Housing Program with slides titled : Project Team, Crisis, Cause, Solution, Target
Demographic, Overview of Workforce Housing Program, Flow Chart of Middle Income Transactions,
Public Benefits to City, City Control, Case Study #1 (4), and Next Steps.
Councilmember Posey asked about converting new assets to below market rate rent and receiving
Regional Housing Needs Assessment (RHNA) credit, and Mr. Rawson explained they are working on
introducing legislation with lobbyists to allow for RHNA credits. Councilmember Posey stated his
support for this program .
Councilmember Delgleize and Mr. Rawson discussed the impact of market fluctuation on bonds, and
the program not being dependent upon increasing rents . The discussion continued regarding some of
the benefits to developers for participating, and Mr. Penkower explained that assets are held in trust by
CSCDA for the participating city, which eliminates risk .
Councilmember Peterson shared his concerns about loss of property tax for 15 to 30 years, and that
the outstanding bonds will restrict the rent and income eligibility for the units. He also stated his opinion
that this program appears to be a form of rent control, and acknowledged that residents have voted
against any type of rent control. Mr. Rawson explained that ready and willing sellers are competing on
the open market to acquire the assets and then choosing themselves to restrict the rents on those
assets, but there is no restriction on any other landlord or owner.
Council/PFA Regular Minutes
February 16, 2021
Page 3of16
Mayor Carr and Mr. Rawson discussed the possibility of a change in program administrator over the 30-
year term of the project, and noted that a city's rental preference policies can be included in the
regulatory agreement. Mayor Carr stated her support for both programs.
Director Luna-Reynosa stated the program could be described as a savings account for the City, or an
investment in real estate for the project duration whi le property taxes are not received , and stated the
next step for the SCIP program would be a resolution ; and the Middle Income Housing Program would
start with a resolution, and include a Joint Powers Authority agreement, and a Public Benefits
agreement.
Director Luna-Reynosa also explained that Huntington Beach's Regional Housing Needs Assessment
(RHNA) target for middle-income housing needs has been met, but all units are for sale , not for rent ,
and it is difficult for potential buyers to meet the underwriting requirements . She also explained that the
goals for very-low and low-income rental assets are not being met; however, the program under
consideration would allow for more moderate income rental units. Director Luna-Reynosa stated that
all housing policy decisions do not need to be focused strictly on RHNA goals , and explained some of
the flexibility options that could be considered , keeping in mind that there are Fa ir Housing stipulations
to prevent discrimination when setting up rental preference policies.
RECESSED TO CLOSED SESSION -5:07 PM
A motion was made by Ortiz, second by Posey to recess to Closed Session for Item Nos . 2 -4 ,
including New Item 21-166. With no objections, the motion passed.
CLOSED SESSION
2. 21-142 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code
section 54956.9(d)(1).) Name of case: Kennedy Commission, et al. v. City of
Huntington Beach; OCSC Case No. 30-2015-00801675.
3. 21-143 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code
section 54956.9(d)(1).) Name of case: Wilson (Carrie) v. City of Huntington Beach,
et al.; OCSC Case No. 30-2019-01094238.
4. 21-144 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code
section 54956.9(d)(1).) Name of case: Rodriguez (Christian A.) v. City of
Huntington Beach, et al.; OCSC Case No.: 30-2020-01131129.
21-166 CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION .
*New Item* Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of
Section 54956.9: Number of cases, one (1 ).
6:00 PM -VIRTUAL ZOOM WEBINAR
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING -6 :00 PM
ROLL CALL
Present: Peterson , Kalmick, Ortiz , Carr, Posey , Moser, and Delg le ize
Absent: None
PLEDGE OF ALLEGIANCE -Led by Councilmember Moser
INVOCATION
Council/PFA Regular Minutes
February 16, 2021
Page 4of16
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. 21-117 Marsha Rechsteiner from Saints Simon and Jude Catholic Church and member of
the Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY -None
AWARDS AND PRESENTATIONS
6. 21-092 Mayor Carr recognized American Heart Month during the month of February 2021
Mayor Carr provided statistics showing that 80 percent of cardiovascular diseases can be prevented
with greater awareness and early intervention, and described some of the different symptoms to be
aware of. Mayor Carr presented a Proclamation recognizing February as American Heart Month to the
Director of Disease Management at the Jeffrey M . Carlton Heart and Vascular Institute at Hoag
Hospital, Dr. Dipti ltchhaporia.
Dr. ltchhaporia thanked the City Council for the Proclamation , for dedicating February 2021 to Women's
Health, and described some of the differences between men and women regarding cardiovascular
diseases . Mayor Carr suggested the American Heart Association's Go Red for Women website as a
place to learn more.
7. 21-161 Mayor Carr presented the Mayor's HB Excellence Award to Catherine Lukehart,
Homeless Outreach Coordinator, Huntington Beach Police Department
Mayor Carr described Ms. Lukehart as a tireless advocate on the City's Homeless Task Force which, in
coordination with the Huntington Beach Police Department and Office of Business Development , has
established community ties with non-profits to develop a network of resources and support to help the
homeless get back on their feet.
Interim Police Chief Harvey thanked the Council for acknowledging Cathy's work from the beginning of
the Homeless Task Force to support and help define the City's current comprehensive approach to
address homelessness in Huntington Beach .
Cathy expressed her pleasure at serving in such a vibrant and supportive community , and stated the
efforts of the whole outreach team has been crucial to the success of the program.
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:
Administrative Items
Council/PFA Regular Minutes
February 16, 2021
Page 5of16
#17 (21-100) Twelve (12) email communications received regarding the proposed consideration of an
extension of the temporary closure of the second block of Main Street to vehicular traffic
through Labor Day.
#18 (21-124) PowerPoint communication titled "City of Huntington Beach-FY 2019120 Year-End Audit
Results and FY 2020121 Mid-Year Budget Update submitted by Dahle Bulosan, Chief
Financial Officer.
Ordinances for Introduction
#19 (21-052) Six (6) email communications regarding the proposed introduction of Ordinance No. 4228 -
prohibiting the storage of personal property on public or private property .
PUBLIC COMMENTS (3-Minute Time Limit)-14 Call -In 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/governmentlagendas.
Amory Hanson, a Candidate for City Council in 2022 and member of the Huntington Beach Historic
Resources Board , was called to speak and stated his opposition to Administrative Item No . 17 (21-100)
regarding an extension of the Temporary Closure of the Second Block of Main Street to Vehicular
Traffic through Labor Day. (01 :26 :09)
Dylan Gera, student at UC Irvine School of Law and 4-year resident of Huntington Beach, was called to
speak and shared his concerns about Ordinances fo r Introduction Item No . 19 (21 -052), regarding
Ordinance No . 4228 prohibiting the storage of personal property on public or private property.
(01 :27:01)
Tony Bisson, a resident of Huntington Beach, was called to speak and shared his concerns about
Ordinances for Introduction Item No . 19 (21 -052), regarding Ordinance No. 4228 prohibiting the storage
of personal property on public or private property . (01 :30:36)
Jennifer Rojas, life-long resident of Huntington Beach , was called to speak and shared her concerns
about Ordinances for Introduction Item No. 19 (21-052), regarding Ordinance No. 4228 prohibiting the
storage of personal property on public or private property. (01 :33 :36)
Dave Shenkman, Downtown business owner and President , Downtown Business Improvement District,
was called to speak and stated support for Administrative Items No . 17 (21-100) regarding an extension
of the Temporary Closure of the Second Block of Main Street to Vehicular Traffic through Labor Day.
(01 :37:05)
Nate Bernal, General Manager and Operating Partner, Baja Sharkeez, was called to speak and stated
support for Administrative Items No. 17 (21 -100) regarding an extension of the Temporary Closure of
the Second Block of Main Street to Vehicular Traffic through Labor Day. (01 :38:20)
Michele M . was called to speak and shared her opposition to Ordinances for Introduction Item No . 19
(21-052), regarding Ordinance No . 4228 prohibiting the storage of personal property on public or
private property. (01 :39 :37)
Council/PFA Regular Minutes
February 16, 2021
Page 6of16
Mark Cyprien, resident of Huntington Beach , was called to speak and shared his support for
Ordinances for Introduction Item No. 19 (21 -052), regarding Ordinance No. 4228 prohibiting the storage
of personal property on public or private property. (01 :41 :13)
Ugochi Anaebere-Nicholson, Directing Attorney, Affordable Housing and Homelessness Prevention
Unit, Public Law Center, was called to speak and shared her concerns about Ordinances for
Introduction Item No . 19 (21 -052), regarding Ordinance No . 4228 prohibiting the storage of personal
property on public or private property. (01 :43:48)
Mike Adams, Planning Consultant, was called to speak and provided comments on Publ ic Hearing Item
No. 21-078 -714 Pacific Coast Highway Mixed Use project. He shared his experience developing the
adjacent property at 716 Pacific Coast Highway, and his concerns related to property setback and
parking recommendations . (01:46:19)
Pat Goodman was called to speak and stated her opposition to Ordinances for Introduction Item No. 19
(21 -052), regarding Ordinance No . 4228 prohibiting the storage of personal property on public or
private property. (01 :49:41)
Allie Most, a 6-year resident of Huntington Beach , was called to speak and shared her opposition to
Ordinances for Introduction Item No . 19 (21 -052), regarding Ordinance No . 4228 prohibiting the storage
of personal property on public or private property. (01:51 :19)
Isam Hanna , residing at 716 Pacific Coast Highway, was called to speak and thanked Mayor Carr for
ack nowledging February as American Heart Month , and asked that the City Council support the
Plann ing Commission recommendation regarding parking for Public Hearing Item No. 16 (21-078) and
permits for the 714 Pacific Coast Highway Mi xed Use project. (01 :52:57)
Female caller #2725 played an audio recording of unidentified ind ividuals sharing unsubstantiated
opinions on pedophilia , the LGBTQ community , and absence of religion in schools. (01 :56:38)
COUNCIL COMMITTEE -APPOINTMENTS -LIAISON REPORTS, AB 1234 REPORTING, AND
OPENN ESS IN NEGOTIATIONS DISCLOSURES
Councilmember Posey reported attending an Agenda Review meeting for an upcoming Vector Control
Board meeting to d iscuss a building for their new headquarters.
Councilmember Moser reported attending a Santa Ana Watershed Ambassador Mini Series , Workshop
II, on collaborating in the face of uncertainty; UCI Division of Continuing Education Public Policy Making
Academy, Formal Training for Public Officials ; meeting with Downtown property and business owners;
meeting with leadership from Jamboree Housing regarding their permanent housing program ; meeting
with Visit HB regarding diversity, inclusion and equity efforts for the tourism industry; attending a
Human Relations Task Force meeting; rece iving an update from Assemblywoman Cottie Petrie-Norris
regarding Covid-19 vaccination plans; attending a Youth Board meeting ; listening in on a Downtown
Restaurant and Retail call; attending a Downtown Bus iness Improvement District meeting; meeting with
the Olson Company regarding a proposed residential development ; and meeting with Huntington Beach
Interim Police Chief Harvey, Huntington Beach Fire Chief Haberle, and staff and volunteers with Wound
Walk OC to discuss crime reduction programs.
Council/PFA Regular Minutes
February 16, 2021
Page 7of16
Councilmember Kalmick reported attending the Orange County Sanitation District Board Orientation
Meeting; meeting with Huntington Beach Homeless United ; attending a Jet Noise Commission meeting;
meeting with the Teamsters ; meeting with staff to discuss a no ise ordinance update ; meeting with the
applicant and appellant for an issue to be discussed later this evening ; and attending a White House
Governmental Affairs weekly briefing for state and local elected officials .
Councilmember Delgleize reported presenting at the UCI Division of Continuing Education Public Policy
Making Academy , Formal Training for Public Officials; attending a Board meeting of the Orange County
Transportation Authority, where it was announced a Board vacancy with details at www.OCTA.net, and
discussion on Measure M2, Environmental Clean-up Project grants, for watershed projects.
Mayor Pro Tern Ortiz reported participating on Mayor Carr's behalf in a call with Orange County mayors
and County Health officials regarding COVID-19, and shared updates on the follow ing topics : available
hospital beds , decreased positivity rates, decreased daily case figures, scheduling appointments for
testing, quarantine guidelines , vaccination pods, vaccine efficacy rates and reopening of schools .
Mayor Carr reminded everyone there are virtual Covid-19 Town Hall meetings on the first and third
Wednesday of each month at 7 PM to present the latest information; reported attending a Youth Board
meeting ; Huntington Beach Council on Aging meeting ; Orange County Sanitation Leg is lat ion and Public
Affairs meeting w ith updates for both the Federal and State levels , and she reported she was appointed
as the Representative to serve on the National Water Research Institute , and attended the lnstitute's
organizational meeting; attended an Economic Development Committee meeting ; and a meeting of the
Downtown ·Business Improvement District.
CITY MANAGER'S REPORT
8. 21-160 Regional Housing Needs Assessment (RHNA) Update
City Manager Chi provided an update on the RHNA appeal process, noting an apparent increase in the
number of required units from 13,337 to 13,368, and that final determination of units is ex pected in
early March . He also reported that the Community Development Department is focusing on outreach
activities to be prepared to inform the public after the early March determination.
Councilmember Posey asked City Manager Chi to include in his next RHNA report the cost to the City
for RHNA non-compliance for the period of May 2015 to Marc h 2020 to show even estimated amounts
for builder fees, property ta xes, sales taxes , and include available grants. City Manager Chi
acknowledged the request.
CITY CLERK'S REPORT
9. 21-123 Presentation on the Safe and Sane Fireworks Stand Application and Lottery
Process for 2021
City Clerk Estanislau presented a PowerPoint communication entitled Sa fe and Sane Fire works Sta nd
Application and Lo ttery Process 2021 with slides titled : Application Period: March 1 through M arch 31 ,
Civic Organiza tions (5), High School (5), Private High Sc hool s, Youth Sports, Prior to Ma rch 1, At the
c onclu sion of the lotte ry drawing, and Ques tion s.
Council/PFA Regular Minutes
February 16, 2021
Page 8of16
Councilmember Posey asked whether Covid-19 impacted fireworks sales last year compared to the
year prior, and since sales are not reported to the City Clerk's office it was suggested the Finance
Department might be able to provide that information so it can be shared at the lottery drawing.
CONSENT CALENDAR
10. 21-116 Approved and Adopted Minutes
A motion was made by Posey, second Kalmick to approve and adopt the City Council special meeting
minutes dated January 5, 2021 ; and , approve and adopt the City Council/Public Financing Authority
regular meeting minutes dated February 1, 2021, as written and on file in the office of the City Clerk.
The motion carried by the following vote :
AYES: Peterson, Kalmick, Ortiz , Carr, Posey, Moser, and Delgleize
NOES: None
11. 21-072 Approved, accepted, and authorized the appropriation of a donation in the amount
of $150,000 from the Friends of the Huntington Beach Public Library
A motion was made by Posey, second Kalmick to approve, accept , and authorize the appropriation of
$150,000 donation from the Friends of the Huntington Beach Public Library during Fiscal Year 2020/21
for use to expand the collection .
The motion carried by the following vote :
AYES: Peterson, Kalmick, Ortiz , Carr, Posey, Moser, and Delgleize
NOES: None
12. 21 -111 Received and filed a status update on the 6th Cycle Regional Housing Needs
Assessment (RHNA) process
A motion was made by Posey, second Kalmick to receive and file the Regional Housing Needs
Assessment process status update.
The motion carried by the following vote:
AYES : Peterson , Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize
NOES: None
13. 21-107 Adopted Resolution No. 2021-09 authorizing the Director of Public Works to
request a project delay from the Orange County Transportation Authority (OCTA)
for the commencement of the Bolsa Chica Street/Valley View Street Corridor
Project
A motion was made by Posey, second Kalmick to adopt Resolution No . 2021-09, "A Resolution of the
City Council of the City of Huntington Beach Authorizing a Request to Pursue a Project Delay from the
Orange County Transportation Authority (OCTA) for the Bolsa Chica StreeWalley View Street Corridor
Council/PFA Regular Minutes
February 16, 2021
Page 9of16
Project -Project P Regional Traffic Signal Synchronization Program -Comprehensive Transportation
Funding Program."
The motion carried by the following vote:
AYES :
NOES:
14. 21-047
Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize
None
Authorized execution of a License Agreement with C3 DLG 414 Main Street, LLC,
for the 414 Main Street Mixed-Use Project located on the east side of Main Street
between Orange Avenue and Pecan Avenue
A motion was made by Posey, second Kalmick to authorize the Mayor and City Clerk to execute and
record the, "License Agreement between the City of Huntington Beach and C3 DLG 414 Main· Street,
LLC, to Provide Installation and Maintenance of Landscaping and Landscaping Improvements in the
Public Right-of-Way," for the 414-424 Main Street mixed-use project (Attachment 1 ).
The motion carried by the following vote:
AYES: Peterson, Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize
NOES: None
15. 21-067 Accepted bid and authorized execution of a construction contract with Alfaro
Communication Construction, Inc., in the amount of $284,270 for the construction
of fiber optic communications to Murdy Park, the Joint Powers Training Facility
and the Water Operations Facility, CC-1593 and CC-1594
A motion was made by Posey , second Kalmick to accept the lowest responsive and responsible bid
submitted by Alfaro Communication Construction, Inc., in the amount of $284,270; and, authorize the
Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
AYES :
NOES:
Peterson , Kalmick, Ortiz, Carr, Posey, Moser, and Delgleize
None
PUBLIC HEARING
16. 21-078 Approved Conditional Use Permit No. 20-012, Coastal Development Permit No. 20-
013, and Special Permit No. 20-001 (714 Pacific Coast Highway Mixed Use)
City Manager Chi introduced Senior Planner Hayden Beckman and Community Development Director
Ursula Luna-Reynosa who presented a PowerPoint communication entitled 714 PCH Mixed Use
Project -Appeal with slides titled : Project Site, Project Request, Floor Plan I Ground Floor, Floor Plan I
Second Floor, Floor Plan I Third Floor, Floor Plan I Rooftop, PC Action and Appeal, Analysis (2),
Design Review Board, Staff Recommendation, Questions?, (Drawing), and HB Mixed Use .
Council/PFA Regular Minutes
February 16, 2021
Page 10of16
Council member Delgleize and Director Luna-Reynosa discussed further the building code requirements
related to firewalls and setbacks at the time the adjacent property was developed at 716 Pacific Coast
Highway.
Mayor Carr and Director Luna-Reynosa discussed the different setback requirements for live-work
projects such as 716 Pacific Coast Highway vs mixed-use projects such as 714 Pacific Coast Highway.
Mayor Carr opened the Public Hearing .
City Clerk Robin Estanislau announced the supplemental communications received by her office
following distribution of the Council Agenda packet:
Public Hearing
#16 (21-078) PowerPoint Presentation titled 714 PCH Mixed Use Project -Appeal submitted by Ursula
Luna-Reynosa , Director of Community Development.
#16 (21-078) Email communication regarding the appeal of the proposed development on 714 PCH
received.
#16 (21-078) Revised Plans for 714 PCH received from Hayden Beckman , Senior Planner.
Public Hearing Speakers -5 Call-In Speakers
Isam Hanna, owner of the property adjacent to 714 Pacific Coast Highway (PCH), was called to speak
and shared his perspective for his project 716 PCH, including his installation of the special 2-hour rated
firewall, and his opinion that his property is also a mixed-use project. He further explained that City
staff dictated the setback measurement so that it was compatible with the adjacent hotel , and added his
project was not approved with a third-floor plaza because according to City staff, it was not compatible.
John Scandura, Member of the Planning Commission but speaking on his own behalf, was called to
speak and described how the 714 PCH mixed-use project was approved by the Zoning Administrator,
and appealed to the Planning Commission by Mr. Hanna , adjacent property owner at 716 PCH. He
described how Mr. Hanna 's project constructed 8-10 years prior had more restrictive setback
requirements , and his understanding that City staff at that time requested they match the existing,
adjacent hotel. Mr. Scandura added that Director Luna-Reynosa's information shared tonight related to
a firewall issue and differences between residential and commercial codes was not shared with the
Planning Commission. He also expressed concerns that staff processing the current application were
not involved in processing Mr. Hanna's project, and agreed to the current proposal despite setbacks
that differ from the adjacent Hanna property and the adjacent hotel. He stated his opinion that the
Commissioners who voted to deny this project believe it is inappropriate to apply different development
requirements for two adjacent properties, adding his opinion that had the City allow Mr. Hanna the
same zero setbacks, he could have built a larger structure. Mr. Scandura also recommended that the
entertainment room on the third floor be modified , as a two-bedroom unit meets parking requirements,
but the entertainment room as now configured can easily be converted into a third bedroom requiring
another parking space .
Flora Hoang, speaking on behalf of her uncle and aunt, property owners of the project at 714 PCH, was
called to speak and explained that their absence at the Planning Commission hearing as due to
COVID-19. Ms . Hoang stated the property owners have been very considerate of their neighboring
Council/PFA Regular Minutes
February 16, 2021
Page 11of16
properties whi le designing their building , and they are concerned about being "pun ished" because of
decisions that were made in the past for the 716 PCH property, and asked that the City Council
approve the 714 PCH project so they can move forward .
Darian Radac, Project Architect, Novum Architecture , and resident of Huntington Beach, was called to
speak and described the consideration taken to minimize this project's impact on the neighbor at 716
Pacific Coast Highway. Mr. Radac described several areas of set-back that exceed requirements ,
moving the roof-top deck, and opening up an 8 1/2 foot wide by 7 foot high area to allow for greater
visibility for the 716 Pacific Coast Highway property , in defining their efforts to mitigate the impact of
their project on Mr. Hanna's property.
Mike Adams, who represented Mr. Hanna for his project at 716 Pacific Coast Highway , was called to
speak. He explained that the setback is 0-3 feet on the side, and 0-5 feet on the front to allow for
discretion by the approving body to ensure compatibility, and added that the first project should set the
standard . Mr. Adams suggested that the corridor that is on the zero property line , 4 feet wide to get
from the front to the rear of the property for accessing the parking from the commercial suite , be
eliminated, and the structural wall be moved back 4 feet. He also explained how cantilevering the
upper residential portion back to the now-open corridor area would provide Mr. Hanna and the
neighbors to the east increased light and air, and would provide a better walkway for the commercial
suite . Mr. Adams suggested how changing the interior garage openings from a carport design to a
single garage design would create the space needed, and added that the Main Street lot line is where
the zero foot setback was proposed for pedestrian safety, but that was not intended for Pacific Coast
Highway where traffic flows at 45 miles per hour.
There being no more speakers , Mayor Carr closed the Public Hearing .
Community Development Director Ursula Luna-Reynosa stated for the record that 714 Pacific Coast
Highway had an active oil well at the time Mr. Hanna subm itted his project application , and no structure
can be placed closer than 100 feet to an act ive oil well. The City approved an "alternate means and
method" as described in the Building Code, to accommodate Mr. Hanna and allowed him to build on his
property. Director Luna-Reynosa added that the oil well was abandoned just prior to Mr. Hanna starting
his development, and he had an opportunity to revise his plans, including the 2-hour rated firewall. She
also clarified that the Downtown Specific Plan states that front yard setbacks are zero to five feet
maximum with no reference to whether th e front yard faces Main Street or Pacific Coast Highway, and
interior yard setback is zero with no max imum amount provided .
Councilmember Kalmick stated that his analysis shows this basic Mi xed-Use project meets current
codes, and each project needs to be judged on its own merits. Councilmember Kalmick stated he would
like to add conditions for approval which stipulate 1) the media room on the th ird floor cannot be
converted to a third bedroom (which would require another park ing space), 2) there be a trash
management program for the building to ensure the trash bins are taken to the curb, and 3) a parking
agreement for alternate parking if the parking lift equipment malfunctions . Councilmember Kalmick
believes this plan follows code, the Downtown Specific Plan , and includes appropriate accommodations
for the neighbors.
Councilmember Posey described the multiple discussions he had with the appellant, staff and
Councilmember Kalmick, and described how building standards change through the years .
Council member Posey stated his support for the project , including the conditions a s described by
Councilmember Kalmick.
Councilmember Delgleize stated her support for the staff recommendation.
Council/PFA Regular Minutes
February 16, 2021
Page 12of16
Councilmember Peterson , Director Luna-Reynosa and Assistant Chief City Attorney Vigliotta discussed
that the project changes did not go back to the Planning Commission for consideration before coming
to City Council , and Councilmember Peterson stated his opinion that the proposed changes should
have had Planning Commission review prior to Council's consideration .
Councilmember Kalmick stated his opinion that similar situations have happened before with other
projects where minor changes have been made .
Director Luna -Reynosa and Assistant Chief City Attorney Vigliotta confirmed that detailed changes to
Conditions of Approval are not required because Code Enforcement will address issues such as trash
management if it becomes necessary.
Mayor Carr stated there appears to be confusion when live -work and mixed-use units are next to each
other in the same District, yet it appears that everyone has followed the rules, so she supports this
project believing they have included good neighbor accommodations .
Councilmember Kalmick confirmed with Senior Planner Beckman that not allowing a third bedroom for
the third -floor residence was already stipulated by the Planning Commission.
A motion was made by Kalmick, second Carr to find the proposed project exempt from the Californ ia
Environmental Quality Act pursuant to Section 15332 of the CEQA Guidelines ; and , approve
Conditional Use Permit No. 20-012 , Coastal Development Permit No. 20-013, and Special Permit No.
20-001 with findings and conditions of approval (Attachment No . 1 ), as amended to include a
condition of approval that provides for a parking management plan .
The motion as amended carried by the following vote :
AYES:
NOES:
Delgleize , Carr, Posey, Moser, and Kalmick
Peterson, and Ortiz
ADMINISTRATIVE ITEMS
17. 21-100 Approved an Extension of the Temporary Closure of the Second Block of Main
Street to Vehicular Traffic Through Labor Day (September 6, 2021 }; Authorized
Staff to Engage an Urban Design Firm; and, Appointed the Mayor, Mayor Pro Tern,
and a City Council Member to Serve on an Ad Hoc Downtown Urban Design Study
Committee
City Manager Chi provided a brief history of the item and introduced Deputy Director of Community
Development Steve Holtz. Deputy Director Holtz described the Council proposal to e xt end the
temporary closure of the Second Block of Main Street through Labor Day, shared that a majority of
affected businesses and property owners support the item , and described the request to form an Ad
Hoc Downtown Urban Design Study Committee to help analyze design opportunities.
Council member Delgleize and Director Luna -Reynosa discussed the timeframe and process for the
Downtown Urban Design project, wh ich could conservatively take approximately three months, after
Council/PFA Regular Minutes
February 16, 2021
Page 13of16
which there would be the public engagement process. Councilmember Delgleize shared support to
consider the concerns not only the restaurants, but also the retail establishments.
Councilmember Peterson suggested that before considering an urban study, allow time for life to return
to normal , and receive input and direction from all of the businesses, not just the Business
Improvement District Board, rather than asking a consultant to provide options for the affected business
owners to consider. Council member Peterson also stated his opinion that the opening of the Second
Block of Main Street coincide with when the State Covid-19 restrictions are lifted rather than to a
specific date.
Councilmember Posey expressed his opinion that the Downtown businesses should have certainty, and
that the Second Block of Main Street should be closed until restaurants are allowed 100 percent indoor
dining , and it is prudent to begin the planning for options after the COVID-19 restrictions are lifted.
Councilmember Moser stated support for Councilmember Posey's comments, and believes it is now
time to bring in a professional to help determine what that area could look like.
Mayor Pro Tern Ortiz stated his support for this item and the importance of moving ahead with plans to
enhance the business environment not only in the Downtown area, but the City as a whole .
Mayor Carr stated her excitement to support this item and belief that moving ahead now will build on
the momentum created when the First and Second Blocks of Main Street are closed to vehicular traffic,
and she expects that the process will include input from businesses in all industries as well as the area
residents.
Councilmember Kalmick described his involvement with the Downtown Image Ad Hoc Committee set
up back in 2007 or 2008 after the Downtown Specific Plan update, and stated his support for moving
ahead now and bringing in consultants with specific knowledge to create a new dynamic plan .
Councilmember Kalmick volunteered to be the Councilmember on the Ad Hoc Committee.
Council member Moser explained the importance of also listening to the concerns of the Second Block
of Main Street businesses who do not support continued closure of the street, and finding ways to make
them more visible.
Councilmember Peterson reiterated that he supports keeping the Second Block of Main Street closed
to vehicular traffic until 100 percent indoor dining is allowed, but would rather see money spent on
business micro grants instead of a design consultant.
Councilmember Posey recommended that Councilmember Kalmick serve on the Ad Hoc committee.
A motion was made by Posey, second Ortiz to authorize the City Manager to continue the temporary
closure of the second block of Main Street to vehicular traffic to accommodate outdoor dining and retail
in the public right-of-way through September 6, 2021; and, authorize staff to engage an Urban Design
Firm; and, establish an Ad Hoc Downtown Urban Design Study Committee; and, appoint the Mayor,
Mayor Pro Tern, and City Council Member (Kalmick) to the Ad Hoc Committee.
The motion carried by the following vote:
AYES : Delgleize , Ortiz, Carr, Posey, Moser, and Kalmick
NOES: Peterson
Council/PFA Regular Minutes
February 16, 2021
Page 14of16
18. 21-124 Received and Filed Year-End Audit results for the FY 2019/20 Comprehensive
Annual Financial Report (CAFR) and FY 2020/21 Mid -Year Budget Adjustments &
Updates
City Manager Chi introduced Chief Financial Officer (CFO) Dahle Bulosan who jointly presented with
Assistant Chief Financial Officer Sunny Rief and Auditor Jennifer Farr a PowerPoint communication
entitled FY 2019120 Year-End Audit Results & FY 2020121 Mid-Year Budget Update with slides titled :
Overview, FY 2019120 Audit & Year-End Results (2), FY 2019120 Audit Reports Issued, Internal
Controls, Areas of Audit Focus in FY 2019120, FY 2019120 Performance (Audited), FY 2019120 General
Fund (Audited), General Fund Balance (2), FY 2020121 Mid-Year Budget Update (2), Mid-Year Budget
Adjustment Requests, General Fund Adjustments, Other Fund Adjustments (2), FY 2021122 Budget
Development Calendar (2), Long-Term Budget Strategy Being Developed, UAL Refinance, Other
Budget Adjustments Being Considered, Recommended Actions, and Questions
Councilmember Posey and City Manager Chi briefly discussed AB109, the State's criminal justice
reform program, and Councilmember Posey asked that Chief Financial Officer Bulosan provide a
financial impact report on AB109 and any costs to the City associated with incarcerations, prosecutions,
and detentions .
Mayor Carr and City Manager Chi discussed the UAL payments to CalPERS which is serviced at seven
percent (7%) interest, and the amount CalPERS returns is adjusted annually as of June 30th . City
Manager Chi confirmed that the UAL obligation currently is $435M.
A motion was made by Delgleize, second Kalmick to receive and file the FY 2019/20 Comprehensive
Annual Financial Report; and, approve mid -year budget adjustments to the FY 2020/21 Revised Budget
in the funds and by the amounts contained in Attachment 1.
The motion carried by the following vote :
AYES:
NOES:
Peterson, Kalmick, Ortiz , Carr, Posey, Moser, and Delgleize
None
ORDINANCES FOR INTRODUCTION
19. 21-052 Approved as amended for introduction Ordinance No. 4228 to amend Chapter
13.10 of the Huntington Beach Municipal Code Prohibiting the Storage of Personal
Property on Public or Private Property
City Manager Chi presented a PowerPoint communication titled Update of Personal Property Storage
Regulations with slides titled: Navigation Center-Positive Impacts on City Operations, Current
Personal Property Storage Regulations Are Overly Broad, Current Municipal Code Language,
Recommended Limitations To Restrict Current Allowable Practices, Consider Modifications To The
Penalties Section Of The Code, Summary & Recommendation, and Questions.
Councilmember Moser, City Manager Chi and Interim Police Chief Harvey discussed how people prove
items are their property when claiming, and that no fines are assessed upon retrieval , nor is there any
interest in seeking retribution for any contraband.
Council/PFA Regular Minutes
February 16, 2021
Page 15of16
Councilmember Peterson thanked Interim Police Chief Harvey and City Attorney's Office for coming up
with a humane solution to handling what can be considered a public health and safety issue, and
moved to approve the item. Mayor Pro Tern Ortiz would later provide a second to the motion.
Councilmember Delgleize presented concerns related to the removal of property as expressed by many
public speakers, and Interim Police Chief Harvey explained that the language in this ordinance doesn't
signal a change in approach, but is an effort to be more specific, and provides the ability to prosecute
as an infraction or as a misdemeanor.
There was additional discussion on how items such as guns or hand grenades that could be evidence
of a crime is addressed in other areas of the code, and not in this ordinance . Interim Police Chief
Harvey stated there is no intention to prosecute if contraband or narcotics are found, that confiscated
property will be stored securely at the City Yard, and reiterated that a process is in place to reclaim lost
property. Councilmember Delgleize stated her support for this item.
Councilmember Moser stated her support for clearly defining regulations for the storage of personal
property, and shared her concern that to some people this effort appears to criminalize homelessness,
as well as the possibility that a violation could be prosecuted as a misdemeanor. She asked that the
ordinance be amended to only allow prosecution as an infraction, and remove the misdemeanor option.
She made a substitute motion to reflect the change , and requested that staff report back regularly with
statistics so that in 6 to 9 months, Council can evaluate if the misdemeanor option needs to be added
back in. Councilmember Kalmick seconded the substitute motion.
Councilmember Posey referenced the current anti-camping and curfew ordinances which can be
enforced now that the Navigation Center is operational , and the seizure and removal of personal
property has to have an objective of addressing homelessness issues such as access to services, and
therefore he is in support of the substitute motion to enforce as an infraction .
Councilmember Kalmick stated his support for the comments made by Councilmembers Moser and
Posey, and added that he would like to add to the motion that staff report the number of tickets every
90 days for further evaluation of the situation and to determine if changes are needed .
Mayor Pro Tern Ortiz stated from his perspective a warning is issued as an infraction , but the option to
issue a misdemeanor for the chronic homeless person who is not interested in utilizing available
services may be necessary to get their attention and help them move somewhere else. Mayor Pro Tern
Ortiz stated it is important to maintain safe and healthy beaches, public spaces and parks for the
general public, and he would also like to have a report in 90 days to review the impact of this change .
Councilmember Peterson stated his opinion that having the misdemeanor option available is important,
and he believes Police Department staff are capable of choosing the right tool for each situation and
Council should not limit their options .
Councilmember Delgleize invited Interim Police Chief Harvey to share his comments on the discussion,
and Chief Harvey explained that this is not a new ordinance, and that over the last six years, 61
citations have been issued. He e xplained the intent of the amendment is to bring clarification to content
that lacks specificity , and his opinion that the ordinance be enforced with compassion , objectivity and
balance while ensuring public spaces remain safe for their intended use while also protecting the
Council/PFA Regular Minutes
February 16, 2021
Page 16of16
property rights of the homeless population . The ordinance as currently written on ly allows for a
misdemeanor, and th is amendment will include the possibility of issuing an infraction .
Mayor Carr clarified the substitute motion by Moser, seconded Kalmick , to approve for introduction
Ordinance No. 4228, "An Ordinance of the City of Huntington Beach Amending Chapter 13 .10 of the
Huntington Beach Municipal Code Prohibiting the Storage of Personal Property on Public or Private
Property" as amended to revise Section 13.10.090 Violations, Penalties and Enforcement to read,
"Notwithstanding any other provision in this Code, each violation of the provisions of this
Chapter shall be enforced alternatively as an infraction."
The substitute motion carried by the following vote:
AYES :
NOES:
Delgleize, Ortiz, Carr, Posey , Moser, and Kalmick
Peterson
COUNCILMEMBER COMMENTS (Not Agendized) -None
ADJOURNMENT -At 10:06 PM to the next regularly scheduled meeting of the Huntington Beach City
Council/Publ ic Financing Authority on Monday , March 1, 2021 , 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
ATTEST:
City Clerk ~ci~~ouncil of
the City of Huntington Beach and Secretary of the
Public Financing Authority of the City of Huntington
Beach, California
Mayor-Chair