HomeMy WebLinkAbout2021-07-20 Agenda Packet-Revised
AGENDA - *Revised
City Council/Public Financing Authority
Tuesday, July 20, 2021
Closed Session – 5:00 PM
Regular Meeting – 6:00 PM
MAYOR AND CITY COUNCIL
KIM CARR, Mayor
BARBARA DELGLEIZE, Mayor Pro Tem
DAN KALMICK, Councilmember
NATALIE MOSER, Councilmember
ERIK PETERSON, Councilmember
MIKE POSEY, Councilmember
Council Chambers
2000 Main Street
Huntington Beach, CA 92648
--or--
Virtual via Zoom Webinar
STAFF
OLIVER CHI, City Manager
MICHAEL E. GATES, City Attorney
ROBIN ESTANISLAU, City Clerk
ALISA BACKSTROM, City Treasurer
On March 17, 2020, Governor Newsom issued Executive Order N-29-20, which allows a local legislative body to
hold public meetings via teleconferencing, and to make public meetings accessible telephonically or otherwise
electronically to all members of the public seeking to observe and to address the local legislative body.
IN-PERSON PUBLIC PARTICIPATION/ZOOM ACCESS: Members wishing to attend the meeting in person
are encouraged to wear a face covering unless fully vaccinated.
Alternate ways to view City Council meetings live or on-demand remain: livestreamed on HBTV Channel 3
(replayed on Wednesday’s at 10:00 a.m., and Thursday’s at 6:00 p.m.); live and archived meetings for on-
demand viewing accessed from https://huntingtonbeach.legistar.com/calendar; or, from any Roku, Fire TV or
Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach
channel.
PUBLIC COMMENTS: At 6:00 PM, individuals wishing to provide a comment on agendized or non-agendized
items may do so in person by completing a Request to Speak form delivered to the City Clerk, or from a virtual
location by entering Zoom Webinar ID 971 5413 0528 via computer device, or by phone at (669) 900-6833. The
Zoom Webinar can be accessed here: https://huntingtonbeach.zoom.us/j/97154130528. Those utilizing
computer devices to request to speak may select the “Raise Hand” feature in the Webinar Controls section.
Attendees entering the Webinar and requesting to speak by phone can enter *9 to enable the “Raise Hand”
feature, followed by the *6 prompt that unmutes their handheld device microphone. Once the Mayor opens Public
Comments, in-person attendees will be called to speak first. Speakers attending via Zoom will be provided a 15-
minute window to raise their hands, and will be prompted to speak when the City Clerk announces their name or
the last three digits of their phone number. All speakers are encouraged, but not required to identify themselves
by name. Each individual may have up to 3 minutes to speak, but the Mayor, at her discretion, may reduce the
time allowance if warranted by the volume of speakers. The Public Comment process will only be active during
designated portions of the agenda (Public Comments and/or Public Hearing). After a virtual speaker concludes
their comment, their microphone will be muted but they may remain in Webinar attendance for the duration of the
meeting.
Members of the public unable to personally participate in the meeting but interested in communicating with the
City Council on agenda-related items are encouraged to submit a written (supplemental) communication via email
at SupplementalComm@Surfcity-hb.org, or City.Council@surfcity-hb.org. Supplemental Communications are
public record, and if received by 2:00 PM on Tuesday, July 20, 2021, will be distributed to the City Council prior
to consideration of agenda-related items, posted to the City website, and announced, but not read, at the meeting.
Supplemental Communications received following the 2:00 PM deadline will be incorporated into the
administrative record the following day.
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 City Clerk's Office at (714) 536-5227 for more information.
Page 1 of 7
City Council/Public Financing
Authority
5:00 PM - COUNCIL CHAMBERS
CALL TO ORDER
ADMINISTER OATH OF OFFICE
AGENDA - Revised July 20, 2021
City Clerk Estanislau to administer the Oath of Office to newly appointed member of the
City Council
ROLL CALL
Peterson, , Delgleize, Carr, Posey, Moser, Kalmick
City Attorney Michael Gates has requested permission to be absent pursuant to City Charter
Section 309(d)
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3-Minute Time Limit) - At
approximately 5:00 PM, individuals wishing to provide a comment on item(s) scheduled for Closed
Session may do so either in person by filling out a Request to Speak form, via computer through
Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833 (see agenda
cover sheet for request to speak instructions). Zoom Webinar participants wishing to speak will be
provided a 15-minute window to “raise their hands,” and prompted to speak when the Clerk
announces their name or the last three digits of their phone number. All speakers are encouraged,
but not required to identify themselves by name. Speakers providing comments in person will be
called to speak first, and each speaker may have up to 3 minutes unless the volume of speakers
warrants reducing the time allowance.
RECESS TO CLOSED SESSION
CLOSED SESSION
1. 21-521 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION.
Significant Exposure to Litigation Pursuant to Paragraph (2) of
Subdivision (d) of Section 54956.9: Number of cases, three (3).
2. 21-527 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION.
(Gov. Code section 54956.9(d)(1).) Name of case: Gonzalez (Joshua)
v. City of Huntington Beach, et al.; USDC Case No.:
8:18-cv-00953-DOC (DFMx).
Page 2 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
3. 21-547 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION -
Initiation of Litigation (Government Code § 54956.9(d)(4)) Orange
County Council of Governments v. Gustavo Velasquez, et al. Los
Angeles Superior Court, Central District Case No. 21STCP01970
6:00 PM – COUNCIL CHAMBERS
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING
ROLL CALL
Peterson, , Delgleize, Carr, Posey, Moser, Kalmick
City Attorney Michael Gates has requested permission to be absent pursuant to City Charter
Section 309(d)
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.
4. 21-452 Maha Ragab of the Muslim Community, HB and member of the
Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY
AWARDS AND PRESENTATIONS
5. 21-497 Mayor Carr to call on Coach Ryan Parker and the Marina High School
Boys Volleyball to recognize their accomplishment as CIF Champs
6. 21-528 Mayor Carr to present the Mayor’s HB Excellence Award to Mike
Dean, Building Inspector III, Community Development Department
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
PUBLIC COMMENTS (3-Minute Time Limit) – At approximately 6:00 PM, individuals wishing to
provide a comment on agendized or non-agendized items may do so either in person by filling out
a Request to Speak form, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar
by phone by calling (669) 900-6833 (see agenda cover sheet for request to speak instructions).
Page 3 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
Zoom Webinar participants wishing to speak will be provided a 15-minute window to “raise their
hands,” and prompted to speak when the Clerk announces their name or the last three digits of
their phone number. All speakers are encouraged, but not required to identify themselves by
name. Speakers providing comments in person will be called to speak first, and each speaker may
have up to 3 minutes unless the volume of speakers warrants reducing the time allowance.
COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
CITY MANAGER'S REPORT
7. 21-525
Crime Statistics: Update
CONSENT CALENDAR
8. 21-523
Approve and Adopt Minutes
Recommended Action:
Approve and adopt the City Council/Public Financing Authority regular meeting minutes
dated July 6, 2021, as written and on file in the office of the City Clerk .
9. 21-484 Approve and authorize execution of Professional Services Contracts
for On-Call Grant Writing and Administration Consulting Services
with Advanced Avant-Garde, Inc., Engineering Solution Services,
KOA Corporation, and Villa Civil, APC
Recommended Action:
A) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and Advanced Avant-Garde Corporation,
for On-Call Grant Writing and Administrative Consulting Services,” in an amount not to
exceed $250,000; and,
B) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and Engineering Solutions Services for
On-Call Grant Writing and Administrative Consulting Services,” in an amount not to exceed
$250,000; and,
C) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and KOA Corporation for On-Call Grant
Writing and Administrative Consulting Services,” in an amount not to exceed $250,000;
and,
D) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Page 4 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
Contract Between the City of Huntington Beach and Villa Civil, APC, for On-Call Grant
Writing and Administrative Consulting Services,” in an amount not to exceed $250,000.
10. 21-493 Approve and authorize execution of Professional Services Contracts
for On-Call Architectural Engineering Services with Johnson Favaro,
Kitchell, PBK-WLC, Studio One Eleven, and Westberg White
Recommended Action:
A) Approve and authorize the Mayor and City Clerk to execute , “Professional Services
Contract Between the City of Huntington Beach and Johnson Favaro for On-Call
Architectural Engineering and Professional Consulting Services,” in an amount not to
exceed $2,000,000; and,
B) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and Kitchell/CEM, Inc. for On-Call
Architectural Engineering and Professional Consulting Services,” in an amount not to
exceed $1,000,000; and,
C) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and PBK-WLC for On-Call Architectural
Engineering and Professional Consulting Services,” in an amount not to exceed
$1,000,000; and,
D) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and RDC-S111, Inc. dba Studio One
Eleven for On-Call Architectural Engineering and Professional Consulting Services ,” in an
amount not to exceed $1,000,000; and,
E) Approve and authorize the Mayor and City Clerk to execute, “Professional Services
Contract Between the City of Huntington Beach and Westberg White, Inc. for On-Call
Architectural Engineering and Professional Consulting Services,” in an amount not to
exceed $1,000,000.
11. 21-492 Approve and authorize execution of Amendment No. 1 to the
Agreement Between the City of Huntington Beach and Central Net
Operations/Joint Powers for Fire Emergency Training Services
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Amendment No. 1 to the
Agreement Between the City of Huntington Beach and Central Net Operations/Joint
Powers for Fire Emergency Training Services.”
12. 21-520 Approve and authorize execution of Amendment No. 1 to
Page 5 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
Cooperative Agreement No. C-3-1845 with Orange County
Transportation Authority (OCTA) for Project V Community Based
Transit/Circulators
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute , “Amendment No. 1 to
Cooperative Agreement No. C-3-1845 Between Orange County Transportation Authority
and the City of Huntington Beach for Project V Community Based Transit/Circulators
(Project No. 14-HBCH-CBT-3743).”
13. 21-524 Approve and authorize execution of Amendment No. 3 to
Professional Services Contract with Goal Productions for On-Call
Video Production Services for HBTV Channel 3
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Amendment No. 3 to
Professional Services Contract Between the City of Huntington Beach and Goal
Productions, Inc. for On-Call Video Production Services.”
14. 21-529 Approve and authorize execution of a Ground Lease Agreement with
the Ocean View School District of Orange County regarding the Oak
View Library Branch and Parking Lot Site
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Ground Lease Agreement
between the City of Huntington Beach and Ocean View School District of Orange County
RE: Oak View Library Branch and Parking Lot Site.”
15. 21-541 Accept the lowest responsive and responsible bid and authorize
execution of a construction contract with J&A Engineering
Corporation (J&A Fence) in the amount of $1,096,227 for the Bluff
Top Park Railing Project, CC-1631
Recommended Action:
A) Accept the most responsive and responsible bid submitted by J&A Fence in the
amount of $1,096,227; and,
B) Authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney.
*17. 21-550 Approve an appointment to the Mobile Home Advisory Board
(MHAB)
Page 6 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
Recommended Action:
Approve the appointment of Vickie Talley as an Owner Member of the MHAB effective
immediately through August 5, 2025.
ADMINISTRATIVE ITEMS
16. 21-531 Approve Middle Income Housing Program by adopting Resolution
No. 2021-43 and Resolution No. 2021-44; Authorize the City Manager
to enter into Public Benefit Agreements and execute Middle-Income
Housing Program agreements, and determine that these actions are
not subject to the California Environmental Quality Act
Recommended Action:
A) Adopt Resolution Nos. 2021-43 and 2021-44 approving, authorizing , and directing
execution of joint exercise of powers agreements relating to the CMFA Special Finance
Agency VII and VIII (collectively the “Agency”) supporting the Agency’s issuance of bonds
for the production, preservation, and protection of essential middle-income rental housing
(“Middle-Income Housing Program”); and,
B) Authorize and direct the City Manager to enter into Public Benefit Agreements,
substantially in the form attached, with the Agency, which may result in the City receiving
surplus revenue from the future sale of the Projects; and ,
C) Authorize and direct the City Manager to execute related documents and take any
additional actions that may be required to implement the Middle-Income Housing
Program; and,
D) Determine that this action is not subject to the California Environmental Quality Act
(CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060(c)(3) , because it
will not result in a direct or reasonably foreseeable indirect physical change in the
environment, and it is not a "project" pursuant to Section 15378(b)(5) of the State CEQA
Guidelines.
COUNCILMEMBER COMMENTS (Not Agendized)
ADJOURNMENT
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday, August 3, 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
Page 7 of 7
City Council/Public Financing
Authority
AGENDA - Revised July 20, 2021
http://www.huntingtonbeachca.gov
City of Huntington Beach
File #:21-521 MEETING DATE:7/20/2021
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Significant Exposure to
Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9: Number of cases,
three (3).
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-527 MEETING DATE:7/20/2021
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION. (Gov. Code section 54956.9
(d)(1).) Name of case: Gonzalez (Joshua) v. City of Huntington Beach, et al.; USDC Case No.:
8:18-cv-00953-DOC (DFMx).
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-547 MEETING DATE:7/20/2021
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Initiation of Litigation
(Government Code § 54956.9(d)(4)) Orange County Council of Governments v. Gustavo
Velasquez, et al. Los Angeles Superior Court, Central District Case No. 21STCP01970
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-452 MEETING DATE:7/20/2021
Maha Ragab of the Muslim Community, HB and member of the Huntington Beach Interfaith
Council
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-497 MEETING DATE:7/20/2021
Mayor Carr to call on Coach Ryan Parker and the Marina High School Boys Volleyball to
recognize their accomplishment as CIF Champs
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-528 MEETING DATE:7/20/2021
Mayor Carr to present the Mayor’s HB Excellence Award to Mike Dean, Building Inspector III,
Community Development Department
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-525 MEETING DATE:7/20/2021
Crime Statistics: Update
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
City of Huntington Beach
File #:21-523 MEETING DATE:7/20/2021
REQUEST FOR 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 July 6, 2021, require review
and approval.
Financial Impact:
None.
Recommended Action:
Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated July 6,
2021, as written and on file in the office of the City Clerk.
Alternative Action(s):
Do not approve and/or request revision(s).
Analysis:
None.
Environmental Status:
Non-Applicable.
Strategic Plan Goal:
Non-Applicable - Administrative Item
Attachment(s):
July 6, 2021 CC/PFA regular meeting minutes
City of Huntington Beach Printed on 7/14/2021Page 1 of 1
powered by Legistar™
Minutes
City Council/Public Financing Authority
City of Huntington Beach
Tuesday, July 6, 2021
4:00 PM - Council Chambers
6:00 PM - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
or, Virtual via Zoom Webinar
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 — 4:01PM
ROLL CALL
Present: Peterson (arrived 5:15 pm), Delgleize, Carr, Posey, Moser, and Kalmick
Absent: None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications that were received by her office following distribution of the Council Agenda packet:
Study Session
#1 (21-504) PowerPoint Communication titled Middle Income Housing Opportunity in Huntington
Beach submitted by Community Development Director, Ursula Luna-Reynosa.
PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS
(3-Minute Time Limit) — None
STUDY SESSION
1. 21-504 Middle Income Housing Opportunity in Huntington Beach
City Manager Oliver Chi introduced Director of Community Development Ursula Luna-Reynosa, assisted
by Janice Eckles, Administrative Analyst Principal and Charles Kovac, Housing Manager who presented
a PowerPoint communication titled Middle Income Housing Opportunity in Huntington Beach with slides
entitled: January Strategic Planning Session, What Is Middle Income Housing financed with Essential
Government Bonds?, Public Benefit Valuation, Investment Opportunity to Create Public Equity, Steps to
Move Forward, Partners, and Questions?
Via Zoom from Hawaii, Director Luna-Reynosa introduced Mr. Ben Barker, Financial Advisor, California
Municipal Finance Authority (CMFA), the Joint Powers Authority purchasing said assets; Catalyst (Asset
Manager) representatives Founder Jordan Moss and Allison Arnold, Partnerships Manager; and Orrick
Council/PFA Regular Meeting
July 6, 2021
Page 2 of 13
(Bond Counsel) representative Partner Justin Cooper, who were all available to answer Council
questions. Director Luna-Reynosa stated that this project would provide 676 Moderate Income Units.
Mayor Pro Tem Delgleize confirmed with staff that a full-time property manager would be on site, current
tenants would not be forced out, any qualified residents may remain, and there would be no time limit on
length of residency.
Mayor Pro Tem Delgleize and Jordan Moss, Catalyst Founder, discussed details related to resident
qualifications to ensure they are paying no more than thirty percent (30%) of their income for rent, and
some of the differences between a new housing development vs. converting existing housing.
Councilmember Posey described the Oceania development on Beach Boulevard as a model for
addressing low-income needs, and stated his support for this plan to keep people working, living and
spending in Huntington Beach. Mr. Barker, Financial Advisor with CMFA, added that this program would
provide an avenue for upward movement for those currently in low-income housing.
Councilmember Kalmick confirmed that the County calculates Area Median Income (AMI), and discussed
with Mr. Barker that CMFA is a government agency that returns the project equity back to the City. In
addition, Mr. Barker explained that fifty percent (50%) of bond fees are distributed back to the community
(split in half between the City and City-recommended non-profits).
City Manager Chi and Director Luna-Reynosa confirmed the model presented, compared to other models
considered by staff, is the best way to achieve middle-income housing in a fiscally responsible manner.
Mayor Carr and Jordon Moss of Catalyst discussed what is lost versus gained when converting property
to middle-income housing, and the types of decisions the City will make during the process.
Mayor Carr asked if there is a limitation on real estate investments, and City Manager Chi clarified that
there is a difference between the City's investment portfolio and creating middle-income housing units.
City Manager Chi confirmed that real estate investment is permissible as long as the investment is used
for public benefit such as creating middle-income housing units, and stated this program is a viable,
conservative and safe way to also create future returns.
Councilmember Posey and Jordon Moss discussed there may be a wash between the amount of
property tax lost and the additional discretionary spending that may result from those paying reduced
rents.
Mayor Carr stated her support for moving ahead, appointed Mayor Pro Tem Delgleize, and accepted
Councilmember Posey's offer to serve on the Ad Hoc committee.
RECESSED TO CLOSED SESSION FOR ITEMS 2 – 3 — 4:34 PM
A motion was made by Delgleize, second by Posey to recess to Closed Session for Items 2 and 3. With
no objections the motion passed.
CLOSED SESSION
2. 21-505 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Gov. Code section
54956.9(d)(1).) Name of case: Gonzalez (Joshua) v. City of Huntington Beach, et al.;
USDC Case No.: 8:18-cv-00953-DOC (DFMx).
Council/PFA Regular Meeting
July 6, 2021
Page 3 of 13
3. 21-510 PUBLIC EMPLOYEE PERFORMANCE EVALUATION. (Paragraph (1) of subdivision
(b) of Section 54957.) Name/Title: Oliver Chi, City Manager.
6:00 PM - COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:02 PM
ROLL CALL
Present: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Posey
INVOCATION
In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or
belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.
4. 21-451 Pat Goodman of the Self-Help Interfaith Program and member of the Greater
Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY — None
AWARDS AND PRESENTATIONS
5. 21-486 Mayor Carr called on Victoria Alberty to present the "Adoptable Pet of the Month"
Ms. Alberty introduced Dana with SAFE Rescue Team and Cashew, a small 9-year-old very “chill” dog
that likes long walks, is a good eater, and loves to cuddle. Further details on Cashew can be found at
https://saferescueteam.org.
6. 21-401 Mayor Carr proclaimed July as National Parks and Recreation Month and presented
a proclamation to Chris Slama, Director of Community and Library Services
Mayor Carr stated the City has over 75 parks comprising over 753 acres and 190 playgrounds providing
many options for healthy lifestyles, and introduced a short video titled Parks Make Life Better!, that
documents the many ways people use community park and recreation services.
Director Chris Slama thanked Council for the recognition, and stated the celebration is more meaningful
this year coming out of the COVID-19 pandemic for the return of organized summer programs.
7. 21-453 Mayor Carr presented the Mayor’s HB Excellence Award to Elisabeth Ferguson,
Senior Accounting Technician, Finance Department
Mayor Carr explained winners of the Mayor's HB Excellence Award are nominated by their co-workers
considering the City’s core values of humility, social awareness, passion, exceptionality, and integrity and
team orientation. Elisabeth was described as someone who emulates the core values, and always with a
smile.
Council/PFA Regular Meeting
July 6, 2021
Page 4 of 13
Chief Financial Officer Dahle Bulosan described the extra effort Elisabeth provided this past year with the
challenges of COVID-19 to ensure the community was served, while also training staff on a major system
upgrade.
Elisabeth expressed her gratitude for the recognition.
8. 21-509 Mayor Carr presented the "Making a Difference Award" to Robyne Wood of
Robyne’s Nest, a non-profit organization that provides local at-risk and homeless
high school students with resources and support to complete high school
Mayor Carr described the Making a Difference Award, which recognizes selflessness, volunteerism, and
exceptional community service to acknowledge unsung heroes in Huntington Beach. Mayor Carr
introduced Robyne and described some of the services that Robyne's Nest provides to create a path to
high school graduation for at-risk youth.
Robyne thanked the Council for the recognition, and expressed appreciation to the many community
members who have stepped forward as volunteers, donors and Board members to bring her vision to
reality.
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:
City Manager’s Report
#9 21-506 PowerPoint communication titled Huntington Beach 4th of July, submitted by Interim Police
Chief Harvey.
Consent Calendar
#10 (21-483) Memo received from City Clerk, Robin Estanislau, advising of a revision to the June 15,
2021 minutes.
#11 (21-501) Email received from John Martin regarding Climate Change Input to Huntington Beach
IRC.
#12 (21-511) Email received from Mary Jo Baretich regarding the proposed appointment of Chris
Houser to the Mobile Home Advisory Board.
#13 (21-464) Email received from Chris MacDonald regarding the proposed agreement with All City
Management Services (ACMS), Inc. for Crossing Guard Services.
Administrative Items
#17 (21-498) PowerPoint Presentation titled Huntington Central Park Public Art Installation submitted by
Director of Community & Library Services, Chris Slama.
Councilmember Items
#18 (21-512) Email received from G. Victor Leipzig regarding the proposed creation of a Citywide
Sustainability Master Plan.
#19 (21-513) Thirty-two (32) emails received regarding the current State of Emergency.
Council/PFA Regular Meeting
July 6, 2021
Page 5 of 13
PUBLIC COMMENTS (3-Minute Time Limit) — 14 In-Person and 4 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/government/agendas.
Amory Hanson, a member of the Huntington Beach Historic Resources Board, was called to speak and
stated his appreciation for being able to meet in person for the July Historic Resources Board meeting.
Mr. Hanson also stated his support for Councilmember Item No. 19 (21-513) regarding terminating
Huntington Beach's COVID-19 Local Emergency Declaration. (01:12:35)
Jenny Braithwaite was called to speak and thanked the July 4th Executive Board for a very successful
celebration. Ms. Braithwaite also stated her support for Councilmember Item No. 18 (21-512) regarding
developing a Huntington Beach Sustainability Master Plan. (01:14:07)
Anthony Gerovese was called to speak and shared his proposal for using drones to help address the
issue of illegal fireworks in Huntington Beach. (01:15:30)
Cari Swan was called to speak and stated her opinion that the open City Council position belongs to the
next runner-up, Gracey Van Der Mark. Ms. Swan also expressed her disappointment that Former
Councilmember Jill Hardy, who termed out last Fall, has submitted her application in an apparent
disregard for the rules. Ms. Swan also stated her opposition to Councilmember Item No. 18 (21-512) for
developing a Huntington Beach Sustainability Master Plan. (01:17:48)
Michelle Perelman, a 20-year resident of Huntington Beach, was called to speak and stated her opinion
that the open City Council position belongs to the voters and asked the Council to appoint the next
runner-up, Gracey Van Der Mark. (01:20:26)
Bella Brannon was called to speak and stated her support for Councilmember Items No. 18 (21-512)
regarding developing a Huntington Beach Sustainability Master Plan, and Item No. 19 (21-513) regarding
terminating Huntington Beach's COVID-19 Local Emergency Declaration. (01:23:43)
Cheryl Horeczko, a 25-year resident of Huntington Beach, was called to speak and stated her opposition
to the City officially promoting the LGBQT community and shared her opinion such support just
contributes to the confusion, mental instability and anxiety of young children and teens. (01:25:16)
Maureen was called to speak and shared photos of crude oil coming out of the ground onto the sidewalk
in front of the apartments at 220 Oswego Avenue. She reported this as a safety issue and asked City
Council to email her their plan of action to remediate this dangerous situation. Mayor Carr asked her to
complete a blue card for follow-up. (01:27:30)
Avery Counts, Constituent Services Manager for Orange County 2nd District Supervisor Katrina Foley,
and resident of Huntington Beach, was called to speak and congratulated Huntington Beach for the
incredible 4th of July celebrations, including the 103rd birthday party for Mrs. Helen Smith; invited the
business community to participate in the Veterans Workforce Development Program which provides
grants to hire veterans; and announced there will be continued COVID-19 clinics in the Oak View
community. OC Supervisor Foley may be reached through avery.counts@ocgov.com or by calling 714-
559-8364. (01:30:49)
Ceason Baker was called to speak and expressed her disappointment regarding past actions by
Councilmembers Moser and Kalmick on land use decisions that appear to conflict with the intentions of
Councilmember Item No. 18 - Develop a Sustainability Master Plan. She also encouraged Council to
listen to the residents and not just follow their own personal agendas. (01:32:38)
Council/PFA Regular Meeting
July 6, 2021
Page 6 of 13
Russell Neal, a resident of Huntington Beach, was called to speak and shared his disappointment in the
Council's failure to authorize the lawsuit by City Attorney Gates concerning the Regional Housing Needs
Assessment (RHNA) made by Southern California Association of Government (SCAG), and noted
residents are watching Council's actions in how they handle the current Council vacancy. (01:34:57)
Kayle Briles, a resident of Huntington Beach, was called to speak and stated his support for the
appointment of local business owner Dom Jones to fill the vacant City Council seat. (01:37:25)
Kathryn March, a local business owner, was called to speak and stated her support for the appointment
of local business owner Dom Jones to fill the vacant City Council seat. (01:38:55)
Roger Noor, a resident of Pomona, was called to speak and described vandalism to his car in Huntington
Beach and lack of response from Police Department personnel to his follow-up calls. (01:40:25)
Call-in speaker Buzz McCord was invited to speak and stated his support for Councilmember Item No.
18 (21-512) regarding developing a Huntington Beach Sustainability Master Plan, and encouraged
Council to follow the process in the City Charter to fill the Council vacancy with someone who has proven
deliberative, constructive and administrative skills. (01:44:04)
Call-in speaker Lisa Swanson, a southeast Huntington Beach resident, was invited to speak and stated
her support for Councilmember Item No. 18 (21-512) regarding developing a Huntington Beach
Sustainability Master Plan, and added her opinion that though not specifically listed, climate change
issues should be an important part of the plan. (01:46:08)
Call-in speaker Craig Preston, a resident of Costa Mesa, was invited to speak and stated support for
Consent Calendar Item No. 11 (21-501) C) regarding support for HR 2307 (Deutch) – Carbon Dividend
Trust Fund. (01:47:41)
Call-in speaker Katie, a life-long resident and Huntington Beach business owner, was invited to speak
and congratulated everyone involved in the successful 4th of July celebrations. She also stated her
support for following the process described in the City Charter to fill the vacant Council position, her
opposition to appointing Gracey Van Der Mark, and support for flying the Pride LGBQT flag. (01:49:06)
COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Kalmick reported meeting with the Huntington Beach Municipal Teamsters (HBMT),
Huntington Beach Police Officers' Association (HBPOA), Short-Term Rental Ad Hoc Committee, and
Southern California Association of Government (SCAG) Energy and Environmental Committee (EEC).
Councilmember Posey reported meeting with the HBPOA, Orange County Vector Control, Orange
County Power Authority (OCPA), and Orange County Council of Governments (OCCOG), which voted to
support a lawsuit against Housing and Community Development (HCD) on the calculations used for
Regional Housing Needs Assessment (RHNA) numbers. Councilmember Posey explained if the lawsuit
is successful, it might result in a minor adjustment to the numbers.
Mayor Pro Tem Delgleize reported attending a meeting of the Orange County Transportation Authority
(OCTA) Taxpayer Oversight Committee, which selected Huntington Beach resident Mark Kizzar as the
newest member for OCTA District 2.
Council/PFA Regular Meeting
July 6, 2021
Page 7 of 13
Councilmember Moser reported meeting with the HBPOA, and attending meetings of the Homeless Task
Force and Huntington Beach Central Park Collaborative.
Councilmember Carr reported meeting with the HBPOA, attending meetings of Orange County Sanitation
District (OCSD), Intergovernmental Relations Committee (IRC), Short-Term Rental Ad Hoc Committee,
and Communications Committee.
CITY MANAGER’S REPORT
9. 21-506 Recap of 4th of July Police Department Response Activities & Planned Operational
Adjustments to Enhance Response Protocols
City Manager Chi introduced Interim Police Chief Harvey and Fire Chief Haberle who jointly presented a
PowerPoint communication titled HBPD 4th of July with slides entitled: 4th of July Preparations, 4th of
July Activity: Overview, 4th of July: Calls for Service, 4th of July: MyHB Reporting, 4th of July: Weekend
Enforcement, Weekend HB Fire Calls for Service, Planned & Unplanned Events (2), HBPD
Organizational Changes, HBPD Special Operations Division, and Questions?
Interim Police Chief Harvey and Fire Chief Haberle provided an overview of the preparations and actions
taken to ensure public safety during 4th of July holiday celebrations, including the use of drones.
Councilmember Posey complimented both Interim Police Chief Harvey and Fire Chief Haberle for their
planning, response and deployment over the long weekend, and shared some of his personal
observations.
Councilmember Kalmick and Interim Police Chief Harvey discussed how calls for service are prioritized,
and confirmed that citizen pictures and videos of illegal activity are helpful for follow-up. Interim Police
Chief Harvey stated that at times of peak fireworks activity, the volume of calls creates a holding pattern
that unfortunately cannot be avoided, but each call is recorded. Interim Police Chief Harvey confirmed
that the Police Department organizational changes described was presented as information to document
the Department's thoughtful analysis of service delivery and to fulfill his responsibilities.
Mayor Carr expressed appreciation to Interim Police Chief Harvey, Fire Chief Haberle and the July 4th
Executive Board for a successful and family-friendly event. Mayor Carr and Interim Police Chief Harvey
discussed drone use to assist not only with on-the-spot response, but also to gather information used for
next year's pre-event community outreach.
CONSENT CALENDAR
Councilmember Posey pulled Item 11. (21-501) for further discussion.
10. 21-483 Approved and Adopted Minutes
A motion was made by Kalmick, second Delgleize to approve and adopt the City Council/Public
Financing Authority special meeting minutes dated June 10, 2021, as written and on file in the office of
the City Clerk; and, approve and adopt the City Council/Public Financing Authority regular meeting
minutes dated June 15, 2021, (as amended by Supplemental Communication) as written and on file
in the office of the City Clerk.
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
Council/PFA Regular Meeting
July 6, 2021
Page 8 of 13
NOES: None
11. 21-501 Approved positions on legislation pending before the State and Federal Legislature,
as recommended by the Intergovernmental Relations Committee (IRC)
Councilmember Posey pulled this item to state his opposition to Item C – (HR 2307) – Carbon Dividend
Trust Fund.
Councilmember Peterson stated his opposition to Item C – (HR 2307) – Carbon Dividend Trust Fund.
A motion was made by Carr, second Posey to approve one or more City positions on the following State
and Federal legislation: A) Support AB 571 (Mayes) - Impact Fees for Affordable Housing Units; B)
Oppose AB 215 (Chiu) - Relative Progress Determination for Housing Elements; and C) Support HR
2307 (Deutch) - Carbon Dividend Trust Fund
The motion carried by the following vote:
AYES: A), B) Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: C) Peterson, Posey
12. 21-511 Approved appointment to the Mobile Home Advisory Board (MHAB) as
recommended by City Council Liaisons Carr and Posey
A motion was made by Kalmick, second Delgleize to approve the appointment of Chris Houser as an
owner member of the MHAB, effective immediately through August 5, 2025.
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
13. 21-464 Approved and authorized execution of a contract agreement with All City
Management Services (ACMS), Inc. for Crossing Guard Services
A motion was made by Kalmick, second Delgleize to approve and authorize the Mayor and City Clerk to
execute "Agreement Between the City of Huntington Beach and All Cities Management Services Inc. for
Crossing Guard Services" for a three-year term beginning on June 30, 2021.
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
14. 21-489 Approved and authorized execution of a new Cooperative Agreement between the
Orange County Transportation Authority (OCTA) and the City of Huntington Beach
for Senior Mobility Program (SMP) transportation services
A motion was made by Kalmick, second Delgleize to approve and authorize the Mayor and City Clerk to
execute "Cooperative Agreement between the Orange County Transportation Authority and the City of
Huntington Beach for Senior Mobility Program."
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
Council/PFA Regular Meeting
July 6, 2021
Page 9 of 13
15. 21-494 Approved and authorized execution of an Amendment to the Service Agreement
between the City of Huntington Beach and MacKay Meters, Inc., for purchase of
additional Single/Double Space Parking Meters
A motion was made by Kalmick, second Delgleize to approve the purchase of two one-space and 22
two-space MacKay parking meters; and, approve and authorize the Mayor to execute the "Amendment
for Addition of Single/Double-Space Parking Meters" to the Gateway/Hosting/Notification Service
Agreement between the City of Huntington Beach and MacKay Meters, Inc.
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
16. 21-502 Approved and authorized execution of Amendment No. 1 to an Agreement with
Tripepi Smith and Associates for Cablecasting Services for City Council and
Planning Commission Meetings
A motion was made by Kalmick, second Delgleize to approve and authorize the Mayor and City Clerk to
execute, "Amendment No. 1 to Agreement between the City of Huntington Beach and Tripepi Smith and
Associates for City Council and Planning Commission Cablecasting Services."
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
ADMINISTRATIVE ITEMS
17. 21-498 Approved the Artwork Design and Location for the Huntington Central Park Public
Art Installation as approved by the Design Review Board (DRB)
City Manager Chi introduced Former Mayor Lyn Semeta, and Director of Community and Library
Services Chris Slama who presented a PowerPoint communication titled Huntington Central Park Public
Art Installation with slides entitled: Project Timeline (4), Initial Study Models and Research (2), Project
Narrative, Location and Scale (4), "To See Yourself in Nature..." Daytime View (3), "To See Yourself in
Nature..." Evening View (2), Staff Recommendation, and Questions?
Mayor Carr thanked the Design Review Board and especially Former Mayor Semeta for their
perseverance during this time of virtual concept reviews, discussions and decisions, which resulted in
approval of this exciting project.
Mayor Pro Tem Delgleize stated her support for this iconic piece of art and thanked Former Mayor
Semeta and the Board.
Councilmember Posey expressed his appreciation to Former Mayor Semeta for the exciting project, and
for clearly describing the source of funding.
Councilmember Moser stated her hope that this project is just the beginning of public art in the City's
public spaces.
Council/PFA Regular Meeting
July 6, 2021
Page 10 of 13
Mayor Carr thanked Ashley Wysocki, Deputy Director of Community and Library Services, for her
outstanding support during this process.
A motion was made by Peterson, second Delgleize to approve the design and location for the Huntington
Central Park Public Art installation, as approved by the Design Review Board on June 10, 2021.
The motion carried by the following vote:
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
COUNCILMEMBER ITEMS
18. 21-512 Approved Item Submitted by Councilmember Moser — Direct staff to begin work on
developing Huntington Beach’s Sustainability Master Plan
Councilmember Moser introduced her item by sharing concerns she believes can best be addressed
through a climate action plan. She stated her discovery that the City is actually doing a number of things,
but at the present time, these efforts are disconnected from each other. She shared her intent to see a
sustainable master plan, or a holistic and whole-system approach, to encourage a prosperous and
healthy community.
Councilmember Posey stated his support for this item for practical, pragmatic and economic reasons,
and described past projects when there was a Sustainability Manager on staff.
Councilmember Peterson expressed his opinion that usually sustainability plans urbanize a community
and create higher housing costs, which seems counterintuitive to the Council’s current efforts to reduce
housing costs. He also stated this effort is too broad in his opinion, and his concern it could create more
unnecessary and expensive government restrictions.
Councilmember Moser responded that ultimately Council is responsible to improve the quality of life and
wellbeing of the entire community, which takes pro-active and comprehensive planning.
Councilmember Peterson stated he is a supporter of personal responsibility, rather than supporting more
government regulations.
Mayor Pro Tem Delgleize stated support for Councilmember Posey's remarks that the City has been
working on sustainability for some time, and added she views this effort as creating options, rather than
requirements, for sustainability.
Councilmember Kalmick stated his opinion that there is a collective responsibility related to issues like
the rising sea level, and added that it makes economic sense for the City to have a sustainable program
that ensures services are provided in the most efficient manner. He further described some of the City's
existing sustainable policies, which are found throughout the General Plan, and stated he sees this item
as a method to draw the policies together, which is expected to also enhance qualifying for funding
resources.
Mayor Carr stated she sees this effort as creating an umbrella to consolidate existing sustainability
efforts to save and make money for the City.
Mayor Carr and Councilmember Moser discussed that at the moment it is not known if a consultant will
be needed during the process, and the intention is to direct staff to help determine available options.
Council/PFA Regular Meeting
July 6, 2021
Page 11 of 13
City Manager Chi confirmed that if Council approves this item, staff would act by reviewing existing
policies and report back to Council on options for moving forward.
A motion was made by Moser, second Delgleize to recommend that the City Council direct the City
Manager to begin work on creating a Citywide Sustainability Master Plan, which should incorporate and
prioritize protection of our local environment, advancement of our common economic interests,
expansion of community health / wellbeing programs, and elevation of equity and inclusion efforts.
The motion carried by the following vote:
AYES: Delgleize, Carr, Posey, Moser, and Kalmick
NOES: Peterson
19. 21-513 Approved Item Submitted by Councilmember Posey – Direct staff to prepare the
necessary documents to terminate Huntington Beach’s existing COVID-19 Local
Emergency Declaration
Councilmember Posey introduced his item by describing the circumstances which resulted in the creation
of the Emergency Declaration, and stated this item follows Governor Newsom's June 15, 2020, action to
end the State's Blueprint for a Safer Economy, fully re-open California's economy, and return to normal
business operations.
Mayor Pro Tem Delgleize and City Manager Chi discussed the fact there is a potential ability to be
eligible for future related cost reimbursement if the COVID-19 Local Emergency Declaration remains in
effect, and terminating the Emergency Declaration will eliminate the possibility of reimbursement. City
Manager Chi stated that under current circumstances there is not expected to be a financial impact for
Huntington Beach.
Councilmember Moser stated her support for this item, and her expectation that residents will continue to
follow all Orange County Health Department COVID-19 safe guidelines.
Mayor Carr discussed with City Manager Chi her concerns that a COVID-19 variant might escalate and
costs may be incurred for potential operational changes.
Councilmember Posey stated this action is expected to provide an offsetting financial impact due to
increased sales and occupancy taxes.
Mayor Carr stated she doesn't believe approval of this item will suddenly open the floodgates for visitors,
as the influx of visitors this past 4th of July weekend is evidence to her that a lot of people don't care
whether the City has an operational Emergency Declaration or not.
Council Moser and City Manager Chi discussed that if the COVID-19 situation changes, and with actual
findings of impact, it would be possible to make a new emergency declaration. City Manager Chi stated
that most area cities are not yet terminating their Emergency Declarations just because of the off chance
the pandemic situation may change. He added that in evaluating the percentage of people vaccinated in
California and Orange County, the chance of incurring additional reimbursable expenses is pretty low.
A motion was made by Peterson, second Posey to direct the City Manager to prepare for consideration
the documents necessary to terminate Huntington Beach's current COVID-19 local emergency
declaration.
The motion carried by the following vote:
Council/PFA Regular Meeting
July 6, 2021
Page 12 of 13
AYES: Peterson, Delgleize, Carr, Posey, Moser, and Kalmick
NOES: None
COUNCILMEMBER COMMENTS (Not Agendized)
Mayor Pro Tem Delgleize reported that Orange County Transportation Authority (OCTA) would be rolling
out a free bus ride pilot program for ages 6 to 18 from September 2021 through February 2022.
Councilmember Posey reported attending Vista View Middle School's 8th Grade Promotion, Association
of California Cities - Orange County's (ACC-OC) Mayors' Summer Reception, HB 4th of July Kick-Off
Meeting Preview, Main Street Kick-Off Party, and viewing the 4th of July Car and Vehicle Parade from
the comfort of his front yard on Main Street.
Councilmember Peterson reported he was the Master of Ceremonies for the 56th Annual Ms. Huntington
Beach Rose Garden Ceremony where Queen Mara James planted a Royal Twilight rose. He thanked
Sand Dollars for continuing to make this pageant possible, as well as Mayor Carr, Mayor Pro Tem
Delgleize and City Clerk Estanislau for attending the ceremony.
Councilmember Moser reported meeting with City management and Central Library staff to evaluate use
of some space at Central Library for teens and display of art; speaking at the Mesa View Middle School
8th Grade Promotion ceremony; discussions with the Director of Public Works and disabled community
members about pedestrian and bike mobility planning; attending most of the July 4th events; and helping
to serve orders at Downtown Sweet Elle Cafe.
Councilmember Kalmick reported attending most of the 4th of July events, including the Downtown Fair,
and expressed his appreciation to everyone who had a part in the successful weekend, especially the
4th of July Executive Board.
Mayor Carr reported attending the 56th Annual Ms. Huntington Beach Rose Garden Ceremony; the HB
Auto Dealers lunch where $60,000 was distributed to local charities; Ribbon Cutting for Matter of Craft
Bottle Shop, Tap Room & Scratch Kitchen; inaugurating a Mayor's Lunch for all Former Mayors who are
not currently serving on the Council; and attending most of the 4th of July events.
Mayor Carr introduced a short video highlighting the Huntington Beach July 4th Celebration, and thanked
the 4th of July Executive Board, Community Services, HB Police and Fire Departments, and Marine
Safety staffs for such a successful weekend.
Mayor Carr announced that Huntington Beach came in as #1 in the United States and California with
Wallet Hub for City Services, and #20 for all services.
ADJOURNMENT — 8:50 PM to a Special Meeting on Friday, July 9, 2021, at 8:00 AM, and an
Adjourned Special Meeting on Saturday, July 10, 2021, at 8:30 AM in the Civic Center Council
Chambers.
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday, July 20, 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
Council/PFA Regular Meeting
July 6, 2021
Page 13 of 13
__________________________________________
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 #:21-484 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Approve and authorize execution of Professional Services Contracts for On-Call Grant Writing
and Administration Consulting Services with Advanced Avant-Garde , Inc., Engineering
Solution Services, KOA Corporation, and Villa Civil, APC
Statement of Issue:
The Public Works Department requires professional grant writing and administrative services on an
on-call or as-needed basis to prepare and administer grant applications for federal,state,regional,
and local funding opportunities.Consultants will conduct research to identify grant resources that
support the City’s funding needs and priorities;provide community outreach services,including
developing community involvement strategies;and coordinate with funding agencies on post-award
procedures, project delivery, funding requests, quarterly reporting, and labor compliance.
Financial Impact:
The City’s Fiscal Year (FY) 2021/22 Capital Improvement Program (CIP) Budget was adopted on
June 1, 2021, and totals $39.3 million (All Funds) for approved projects citywide. Each approved CIP
project has a budget containing sufficient funding for project administration and other required costs.
The four recommended contracts, totaling $1.0 million, will be funded out of the CIP or department
operating budget, as needed. As such, no additional funding is required by this action.
Recommended Action:
A) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Advanced Avant-Garde Corporation, for On-Call Grant
Writing and Administrative Consulting Services,” in an amount not to exceed $250,000; and,
B) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Engineering Solutions Services for On-Call Grant Writing
and Administrative Consulting Services,” in an amount not to exceed $250,000; and,
C) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and KOA Corporation for On-Call Grant Writing and
City of Huntington Beach Printed on 7/14/2021Page 1 of 3
powered by Legistar™
File #:21-484 MEETING DATE:7/20/2021
Administrative Consulting Services,” in an amount not to exceed $250,000; and,
D) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Villa Civil, APC, for On-Call Grant Writing and
Administrative Consulting Services,” in an amount not to exceed $250,000.
Alternative Action(s):
Do not authorize the proposed contracts and direct staff accordingly. Budgeted Capital Projects
could be delayed until new contracts are approved.
Analysis:
On April 1,2021,the City advertised a Request for Qualifications (RFQ)for On-Call Grant Writing &
Administrative Consulting Services.Proposals were requested and submitted in compliance with
Chapter 3.03 of the Huntington Beach Municipal Code.Eleven (11)proposals were received for On-
Call Grant Writing &Administrative Consulting Services.In accordance with qualifications-based
selected procurement per the Federal “Brooks Act,”State SB 419,and the City of Huntington Beach
Municipal Code Section 3.03 “Professional Services,”the Public Works Department established a
review board.Each firm submitted a proposal indicating their category of expertise.Proposals were
then evaluated and ranked by the review board.The top four firms were selected to increase
opportunity for competitive proposals for future projects from qualified on-call consultants.
The four contracts recommended for City Council approval are for on-call support staff to pursue
grant funding and administer existing grant funds related to water,wastewater,stormwater,
transportation,and park improvement projects.These services will be utilized to supplement City
staff in meeting annual CIP goals,as an extension of staff,and/or to provide required expertise for
unique projects.Additionally,these services will be required to secure federal stimulus grants
anticipated this year.Each project is evaluated on a case-by-case basis to determine if these
services are necessary.
Typical grant application and administrative support costs from the use of consultants on a CIP
project varies between three to ten percent of the total costs for a CIP project.Therefore,it is
practical to conservatively assume minimum annual consultant costs would be around $250,000 to
the City for total CIP projects, or approximately $1 million over the next three years.
Some of the typical grants for water,wastewater,stormwater,transportation,and park improvements
include the following:Active Transportation Program (ATP),Highway Safety Improvements Program
(HSIP),Prop 1 Groundwater,Recreational Trails Program,Prop 68 Sustainable Groundwater
Management,Rebuilding America Infrastructure with Sustainability &Equity Program (RAISE),
CalOES Flood Mitigation Assistance,Infrastructure State Revolving Fund,USBR Water Smarts
Program, and Drinking Water State Revolving Fund.
Administrative support services are needed for grants related to water,wastewater,stormwater,parks
,and transportation CIP projects.These consultants have been selected to meet the projected
workload over the next three years, with a total not to exceed amount of $250,000 per firm.
Environmental Status:
City of Huntington Beach Printed on 7/14/2021Page 2 of 3
powered by Legistar™
File #:21-484 MEETING DATE:7/20/2021
Not applicable.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1.Professional Services Contract between the City of Huntington Beach and Advanced Avant-
Garde Corporation for On-Call Grant Writing and Administrative Consulting Services
2.Professional Services Contract between the City of Huntington Beach and Engineering
Solutions Services for On-Call Grant Writing and Administrative Consulting Services
3.Professional Services Contract between the City of Huntington Beach and KOA Corporation
for On-Call Grant Writing and Administrative Consulting Services
4.Professional Services Contract between the City of Huntington Beach and Villa Civil, APC, for
On-Call Grant Writing and Administrative Consulting Services
5.RFQ Award Analysis
City of Huntington Beach Printed on 7/14/2021Page 3 of 3
powered by Legistar™
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Grants & Administrative Services
SERVICE DESCRIPTION: Staff support for grant writing and post-award funding
administration.
VENDOR: Engineering Solution Services
OVERALL RANKING: 1 out of 4
SUBJECT MATTER EXPERTS/RATERS:
1. Deputy PW Director – Transp & Eng 2. Deputy PW Director - Utilities 3. Administrative Services
Manager 4. Asst. CFO
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Avg. of 439
VENDOR NAME – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Compliance with RFP 40 50
Technical Approach 113 125
Qualifications 118 125
Clarity 43 50
Cost 103 125
References and Background 22 25
Total 439 500
II. DUE DILIGENCE REVIEW
Interview Ranking: 1
Engineering Solutions Services – Summary of Review
Engineering staff who secured funds for water,
sewer, stormwater, transportation, parks &
facilities
Engineering Solutions Services – Pricing
Clerical from $58/hr to Project Manager $150/hr
2
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Grants & Administrative Services
SERVICE DESCRIPTION: Staff support for grant writing and post-award funding
administration.
VENDOR: Avant Garde Corp.
OVERALL RANKING: 2 out of 4
SUBJECT MATTER EXPERTS/RATERS:
1. Deputy PW Director – Transp & Eng 2. Deputy PW Director - Utilities 3. Administrative Services
Manager 4. Asst. CFO
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Avg. of 418
VENDOR NAME – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Compliance with RFP 40 50
Technical Approach 106 125
Qualifications 106 125
Clarity 37.5 50
Cost 112.5 125
References and Background 16 25
Total 418 500
II. DUE DILIGENCE REVIEW
Interview Ranking: 2
Avant Garde Corp – Summary of Review
Admin staff who secured State & Federal funds &
provide labor compliance.
Avant Garde Corp – Pricing
Program Asst. from $75/hr to Program Director
$130/hr
3
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Grants & Administrative Services
SERVICE DESCRIPTION: Staff support for grant writing and post-award funding
administration.
VENDOR: Villa Civil Corp.
OVERALL RANKING: 3 out of 4
SUBJECT MATTER EXPERTS/RATERS:
1. Deputy PW Director – Transp & Eng 2. Deputy PW Director - Utilities 3. Administrative Services
Manager 4. Asst. CFO
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Avg. of 384
VENDOR NAME – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Compliance with RFP 37.5 50
Technical Approach 109 125
Qualifications 106 125
Clarity 40 50
Cost 75 125
References and Background 16.5 25
Total 384 500
II. DUE DILIGENCE REVIEW
Interview Ranking: 3
Villa Civil Corp – Summary of Review
Engineering staff who secured State & Federal
funds for water, sewer, stormwater,
transportation, parks & facilities; & provide labor
compliance.
Villa Civil Corp – Pricing
Admin. Asst. from $80/hr to Principal Eng.
$220/hr
4
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Grants & Administrative Services
SERVICE DESCRIPTION: Staff support for grant writing and post-award funding
administration.
VENDOR: KOA Corp.
OVERALL RANKING: 4 out of 4
SUBJECT MATTER EXPERTS/RATERS:
1. Deputy PW Director – Transp & Eng 2. Deputy PW Director - Utilities 3. Administrative Services
Manager 4. Asst. CFO
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Avg. of 366
VENDOR NAME – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Compliance with RFP 40 50
Technical Approach 113 125
Qualifications 118 125
Clarity 43 50
Cost 103 125
References and Background 22 25
Total 366 500
II. DUE DILIGENCE REVIEW
Interview Ranking: 4
KOA Corp. – Summary of Review
Engineering staff who secured funds for
transportation, parks & facilities.
KOA Corp. – Pricing
Admin Asst. from $72/hr to Principal Engineer II
$292/hr
City of Huntington Beach
File #:21-493 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Approve and authorize execution of Professional Services Contracts for On-Call Architectural
Engineering Services with Johnson Favaro, Kitchell, PBK-WLC, Studio One Eleven, and
Westberg White
Statement of Issue:
The Public Works Department requires on-call architectural engineering services for as-needed
support staff to assist with the design of capital improvement projects, which are identified in the
annual Capital Improvement Program (CIP), as well as other facility and infrastructure needs.
Financial Impact:
The City’s adopted Fiscal Year (FY)2020/21 and proposed FY 2021/22 CIP Budgets total $24.5
million and $39.3 million,respectively,for approved projects citywide.Each approved CIP project
has a budget containing sufficient funding for design,environmental,engineering,construction,
project management,and other required costs.The five recommended architectural engineering
service contracts,totaling $6.0 million,will be funded within each project’s individual CIP budget,as
needed. As such, no additional funding is required by this action.
Recommended Action:
A) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Johnson Favaro for On-Call Architectural Engineering and
Professional Consulting Services,” in an amount not to exceed $2,000,000; and,
B) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Kitchell/CEM, Inc. for On-Call Architectural Engineering
and Professional Consulting Services,” in an amount not to exceed $1,000,000; and,
C) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and PBK-WLC for On-Call Architectural Engineering and
Professional Consulting Services,” in an amount not to exceed $1,000,000; and,
D) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
City of Huntington Beach Printed on 7/14/2021Page 1 of 3
powered by Legistar™
File #:21-493 MEETING DATE:7/20/2021
Between the City of Huntington Beach and RDC-S111, Inc. dba Studio One Eleven for On-Call
Architectural Engineering and Professional Consulting Services,” in an amount not to exceed
$1,000,000; and,
E) Approve and authorize the Mayor and City Clerk to execute, “Professional Services Contract
Between the City of Huntington Beach and Westberg White, Inc. for On-Call Architectural
Engineering and Professional Consulting Services,” in an amount not to exceed $1,000,000.
Alternative Action(s):
Do not authorize the contracts and direct staff accordingly. Budgeted capital improvement projects
could be delayed until new contracts are approved.
Analysis:
On March 15,2021,the City advertised a Request for Qualifications (RFQ)for On-Call Architectural
Engineering and Professional Consulting Services.Proposals were requested and submitted in
compliance with Chapter 3.03 of the Huntington Beach Municipal Code.Twenty-five proposals were
received for architectural engineering services.In accordance with qualifications-based selected
procurement,per the Federal “Brooks Act,”State SB 419,and the City of Huntington Beach Municipal
Code Section 3.03 “Professional Services,”the Public Works Department established a review board.
Proposals were then evaluated and ranked by the review board.The top five firms were selected in
each category to increase opportunity for competitive proposals for future projects from qualified on-
call consultants.
The five contracts recommended for approval are for support staff for architectural engineering of
capital improvement projects as well as general infrastructure projects.These services have
historically been utilized to supplement City staff to meet annual Capital Improvement Program (CIP)
goals,as an extension of staff,and/or to provide required expertise for unique projects.It is
anticipated that these services will be required,based on previous years.Each project is evaluated
on a case-by-case basis to determine if these as-needed contract services are necessary.
The City’s CIP was approximately $24.5 million in FY 2020/21.In addition,the proposed FY 2021/22
CIP totals $39.3 million in new projects.Typical design and construction support cost from the use of
consultants on a CIP project can vary between ten to twenty percent (10-20%)of total costs for a CIP
project.Therefore,it is practical to conservatively assume minimum annual consultant costs would
be around $3 million to the City for total CIP projects,or approximately $9 million over the next three
(3)years.However,there will be one firm (Johnson Favaro)with a higher allocation of $2 million to
reflect the design services for the Oakview Community Center,which has been adopted in the City’s
CIP budget.
Architectural engineering services are typically required for buildings and structures related CIP
projects. Therefore, these consultants were selected to meet projected workload over the next three
years with a total contract limit of $6 million.The proposed contract amounts are a not-to-exceed amount
for a three-year term, with no guarantee of work. Funding for any and all of these contract services is only
through City Council authorization in the budget approval process.
Environmental Status:
City of Huntington Beach Printed on 7/14/2021Page 2 of 3
powered by Legistar™
File #:21-493 MEETING DATE:7/20/2021
Not applicable.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1.Professional Services Contract between the City of Huntington Beach and Johnson Favaro for
On-Call Architectural Engineering Services
2.Professional Services Contract between the City of Huntington Beach and Kitchell for On-Call
Architectural Engineering Services
3.Professional Services Contract between the City of Huntington Beach and PBK-WLC for On-
Call Architectural Engineering Services
4.Professional Services Contract between the City of Huntington Beach and Studio One Eleven
for On-Call Architectural Engineering Services
5.Professional Services Contract between the City of Huntington Beach and Westberg White for
On-Call Architectural Engineering Services
6.Professional Services Award Analysis
City of Huntington Beach Printed on 7/14/2021Page 3 of 3
powered by Legistar™
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Architectural Engineering
SERVICE DESCRIPTION: Architectural support for City’s annual Capital Improvement
Program projects.
VENDOR: Johnson Favaro
OVERALL RANKING: 1 out of 25
SUBJECT MATTER EXPERTS/RATERS:
1. Principal Civil Engineer 2. Contract Administrator 3. Project Coordinator
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Ave. of 93
Johnson Favaro – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 10 10
Qualifications 24 20
Staffing 24 20
Understanding and
Methodology 11 15
References and Background 9 10
Interview 15 15
Total 93 100
II. DUE DILIGENCE REVIEW
Johnson Favaro – Summary of Review
Excellent experience including community centers
Johnson Favaro – Pricing
Low end from $85/hr
High end to $220/hr for Principal
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Architectural Engineering
SERVICE DESCRIPTION: Architectural support for City’s annual Capital Improvement
Program projects.
VENDOR: PBK-WLC
OVERALL RANKING: 2 out of 25
SUBJECT MATTER EXPERTS/RATERS:
1. Principal Civil Engineer 2. Contract Administrator 3. Project Coordinator
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Ave. of 93
PBK-WLC – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 9 10
Qualifications 23 20
Staffing 23 20
Understanding and
Methodology 15 15
References and Background 9 10
Interview 14 15
Total 93 100
II. DUE DILIGENCE REVIEW
PBK-WLC– Summary of Review
Excellent overall experience in beach cities including
fire and police stations, community centers, and
parks.
PBK-WLC– Pricing
Low end from $105/hr
High end to $255/hr for Principal
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Architectural Engineering
SERVICE DESCRIPTION: Architectural support for City’s annual Capital Improvement
Program projects.
VENDOR: Kitchell
OVERALL RANKING: 3 out of 25
SUBJECT MATTER EXPERTS/RATERS:
1. Principal Civil Engineer 2. Contract Administrator 3. Project Coordinator
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Ave. of 92
Kitchell – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 9 10
Qualifications 23 20
Staffing 23 20
Understanding and
Methodology 14 15
References and Background 9 10
Interview 14 15
Total 92 100
II. DUE DILIGENCE REVIEW
Kitchell – Summary of Review
Great experience with various facilities such as fire
stations and restrooms. In-house engineering and
architectural services
Kitchell – Pricing
Low end from $90/hr
High end to $250/hr for Project Director
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Architectural Engineering
SERVICE DESCRIPTION: Architectural support for City’s annual Capital Improvement
Program projects.
VENDOR: Westberg White
OVERALL RANKING: 4 out of 25
SUBJECT MATTER EXPERTS/RATERS:
1. Principal Civil Engineer 2. Contract Administrator 3. Project Coordinator
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Ave. of 91
Westberg White – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 9 10
Qualifications 23 20
Staffing 23 20
Understanding and
Methodology 14 15
References and Background 9 10
Interview 13 15
Total 91 100
II. DUE DILIGENCE REVIEW
Westberg White – Summary of Review
Good previous experience with City
Westberg White – Pricing
Low end from $70/hr
High end to $230/hr for Principal
PROFESSIONAL SERVICE AWARD ANALYSIS
SERVICE: On-Call Architectural Engineering
SERVICE DESCRIPTION: Architectural support for City’s annual Capital Improvement
Program projects.
VENDOR : Studio One Eleven
OVERALL RANKING: 5 out of 25
SUBJECT MATTER EXPERTS/RATERS :
1. Principal Civil Engineer 2. Contract Administrator 3. Project Coordinator
I. MINIMUM QUALIFICATIONS REVIEW
Written Proposal Score: Ave. of 89
Studio One Eleven – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 9 10
Qualifications 22 20
Staffing 22 20 Understanding and
Methodology 14 15
References and Background 9 10
Interview 13 15
Total 89 100
II. DUE DILIGENCE REVIEW
Studio One Eleven – Summary of Review
Good experience with urban design,
façade/frontage, and community engagement.
Studio One Eleven – Pricing
Low end from $95/hr
High end to $240/hr for Senior Principal
City of Huntington Beach
File #:21-492 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Scott M. Haberle, Fire Chief
Subject:
Approve and authorize execution of Amendment No. 1 to the Agreement Between the City of
Huntington Beach and Central Net Operations/Joint Powers for Fire Emergency Training
Services
Statement of Issue:
The City Council is requested to approve Amendment No. 1 to the Central Net Operations Authority
Joint Powers Agreement and authorize the Mayor and City Clerk to execute the agreement.
Financial Impact:
None.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Amendment No. 1 to the Agreement
Between the City of Huntington Beach and Central Net Operations/Joint Powers for Fire Emergency
Training Services.”
Alternative Action(s):
Do not approve the amendment and direct staff accordingly.
Analysis:
For approximately 50 years, the Huntington Beach Fire Department has participated with surrounding
cities as a member of a Joint Powers Authority arrangement for training. Referred to as the Central
Net Operations Authority (CNOA), this organization has provided a cost savings for the City, while
allowing fire department personnel to obtain essential and mandated training in fire, rescue,
emergency medical services, and other related topics.
The basis for the Joint Powers Authority arrangement is found in the Joint Exercise of Powers Act
(Section 6500 et. seq. of the Government Code) and the Municipal Services and Functions Act
(Section 54980 et. seq. of the Government Code). These codes allow for the performance of the
duties and functions that form the basis of the Agreement.
City of Huntington Beach Printed on 7/14/2021Page 1 of 2
powered by Legistar™
File #:21-492 MEETING DATE:7/20/2021
The CNOA Joint Powers Agreement was last updated on September 19, 2011. At that time, the
agreement was revised to reflect the change in membership, due to the withdrawal of two member
agencies, Newport Beach and Westminster. In addition to changes in member agencies, a
comprehensive history of the City’s participation as a member of the CNOA was added, along with an
updated termination date and a provision for agreement extension.
At this time it is proposed that the attached amendment to the Joint Powers Agreement be extended
for an additional ten (10) years (Attachment 1). The original agreement is shown as Attachment 2.
CNOA continues to add value to its member agencies by providing timely training programs to meet
State mandated requirements for agency personnel.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1.Amendment No. 1 to the Agreement Between the City of Huntington Beach and Central Net
Operations/Joint Powers for Fire Emergency Training Services
2.Central Net Operations Authority Joint Powers Agreement
City of Huntington Beach Printed on 7/14/2021Page 2 of 2
powered by Legistar™
City of Huntington Beach
File #:21-520 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Approve and authorize execution of Amendment No. 1 to Cooperative Agreement No. C-3-1845
with Orange County Transportation Authority (OCTA) for Project V Community Based
Transit/Circulators
Statement of Issue:
On July 3, 2014, the City entered into a Cooperative Agreement with OCTA for a Project V grant to
partially fund the Fourth of July and U.S. Open shuttle services. Due to the COVID-19 pandemic, the
shuttle services were not used in 2020 and 2021. The original agreement expired on March 31,
2021. This amendment extends the agreement to March 31, 2023, which will allow the City to
receive funding for Summer 2022 shuttle service.
Financial Impact:
Since 2014, the grant has provided over $34,000 to supplement the shuttle services. The City’s
matching funds will be included in the Fiscal Year 2022/23 budget submittal in the AQMD fund.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Amendment No. 1 to Cooperative
Agreement No. C-3-1845 Between Orange County Transportation Authority and the City of
Huntington Beach for Project V Community Based Transit/Circulators (Project No. 14-HBCH-CBT-
3743).”
Alternative Action(s):
Do not approve this amendment and direct staff accordingly. This would result in the City forfeiting
the available grant funds.
Analysis:
The City of Huntington Beach entered into a Cooperative Agreement with OCTA on July 3, 2014 , for
a Project V grant to partially fund the Fourth of July and U .S. Open shuttle services. Per the original
agreement, OCTA will provide eight dollars ($8.00) per boarding, or seventy percent (70%) of the
operating cost, whichever is lower. Since 2014, OCTA has provided over $34,000 to supplement
City of Huntington Beach Printed on 7/14/2021Page 1 of 2
powered by Legistar™
File #:21-520 MEETING DATE:7/20/2021
shuttle services, with matching funds coming from the Air Quality Management District (AQMD) fund.
The shuttle services were not in effect for the years of 2020 and 2021, due to the COVID-19
pandemic. The original agreement expired on March 31, 2021. This amendment would extend this
agreement to March 31, 2023.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
COVID-19 Response
Attachment(s):
1.Amendment No. 1 to Cooperative Agreement No. C-3-1845
2.Cooperative Agreement No. C-3-1845 between Orange County Transportation Authority and
City of Huntington Beach for Project V Community Based Transit/Circulators
City of Huntington Beach Printed on 7/14/2021Page 2 of 2
powered by Legistar™
City of Huntington Beach
File #:21-524 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Travis K. Hopkins, Assistant City Manager
Subject:
Approve and authorize execution of Amendment No. 3 to Professional Services Contract with
Goal Productions for On-Call Video Production Services for HBTV Channel 3
Statement of Issue:
Currently,Goal Productions provides on-call video production services under a two-year agreement
that expires on July 22,2021.Their services include the production of Seasons 1 and 2 of Hidden
Huntington Beach,which airs exclusively on HBTV Channel 3.Amendment No.3 would extend the
agreement by one year for up to $50,000, which will fund 13 new episodes for Season 3 .
Financial Impact:
Sufficient funds for this one-year extension ($50,000)are available in the Fiscal Year 2021-2022
Operating Budget,using PEG funds in Business Unit 24330101.Should Amendment No.3 be
approved,the total not-to-exceed amount for this agreement will increase from $90,000 (for the initial
two-year contract) to $140,000.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Amendment No. 3 to Professional
Services Contract Between the City of Huntington Beach and Goal Productions, Inc. for On-Call
Video Production Services.”
Alternative Action(s):
Do not approve the amendment and direct staff accordingly.
Analysis:
Following the City’s transition from the joint Public Cable Television Authority (PCTA) to the City-run
HBTV Channel 3, staff issued a Request for Proposal in March 2019 for on-call video production
companies to produce original content for HBTV. Following careful review of all proposals, the City
entered into a two-year agreement with Goal Productions, scheduled to expire on July 22, 2021.
During the two-year period, Goal Productions was tasked to produce Seasons 1 and 2 of Hidden
City of Huntington Beach Printed on 7/14/2021Page 1 of 2
powered by Legistar™
File #:21-524 MEETING DATE:7/20/2021
Huntington Beach, which now has a large following of residents, business owners, and other fans
who enjoy the show’s fresh take on local history. The show has explored and revived the often
forgotten history of the City, including the Bolsa Chica Gun Club, the Longboard Restaurant, and
World War II’s impacts on our community.
Each season produced by Goal includes 13 episodes for approximately $45,000. Accordingly, Goal’s
agreement was amended to increase total compensation to $90,000 during its initial two-year term.
Amendment No. 3 proposes to extend the term by one additional year, and increase compensation
by up to $50,000 for 13 new episodes of Season 3 (proposed at $47,750 by Goal).
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
Attachment(s):
1.Amendment No. 3 to Professional Services Contract with Goal Productions
2.Professional Services Contract with Goal Productions
City of Huntington Beach Printed on 7/14/2021Page 2 of 2
powered by Legistar™
City of Huntington Beach
File #:21-529 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Chris Slama, Director of Community & Library Services
Subject:
Approve and authorize execution of a Ground Lease Agreement with the Ocean View School
District of Orange County regarding the Oak View Library Branch and Parking Lot Site
Statement of Issue:
There is a need to approve a ground lease agreement between the City of Huntington Beach and
Ocean View School District of Orange County regarding the Oak View Library Branch and Parking
Lot Site.
Financial Impact:
The agreement requires a nominal payment of $1.00 rent per year for the use and occupancy of the
premises during the term of the agreement. This amount can be accommodated through the
Community and Library Services Department budget.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute, “Ground Lease Agreement between the
City of Huntington Beach and Ocean View School District of Orange County RE: Oak View Library
Branch and Parking Lot Site.”
Alternative Action(s):
Do not approve the agreement and direct staff accordingly.
Analysis:
Since 1995, the City of Huntington Beach has had a ground lease agreement (Agreement) between
the City and the Ocean View School District (District) of Orange County to (1) provide a public library
branch to serve the needs of the students and residents of the Oak View community, and (2) to
permit the Parties to continue to share parking rights to the Joint Parking Area for library use
purposes and for District-related events and activities pertaining to the Oak View Elementary School
and Preschool.
The agreement requires a payment of $1.00 annually for use of the property. In addition, the City is
City of Huntington Beach Printed on 7/14/2021Page 1 of 2
powered by Legistar™
File #:21-529 MEETING DATE:7/20/2021
responsible for all utilities, as well as the maintenance of the facility and shared parking lot. Per the
agreement and unless agreed to otherwise, hours of operation are also specified to be Monday -
Friday, 9:00 a.m. to 9:00 p.m., and Saturday, 9:00 a.m. to 5:00 p.m.
The primary programming focus of the Oak View library branch is toward students and residents,
provided in English and Spanish. Additionally, the branch will provide literacy series, homework
assistance, and basic library services emphasizing the importance of reading and extended
education. The Library has two Literacy Program Specialists that coordinate the library operation
and network with Oak View School and other educational/social agencies.
The term of the agreement shall be five (5) years from the effective date of this agreement, subject to
earlier termination, if needed. The lease includes one (1) option to extend the term for a period of
five (5) years upon mutual, written consent of both parties. In addition to the five-year option, the
term may be further extended by a writing executed by both parties.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
Attachment(s):
1)Ground Lease Agreement between the City of Huntington Beach and Ocean View School
District of Orange County RE: Oak View Library Branch and Parking Lot Site
City of Huntington Beach Printed on 7/14/2021Page 2 of 2
powered by Legistar™
City of Huntington Beach
File #:21-541 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Accept the lowest responsive and responsible bid and authorize execution of a construction
contract with J&A Engineering Corporation (J&A Fence) in the amount of $1,096,227 for the
Bluff Top Park Railing Project, CC-1631
Statement of Issue:
On July 13, 2021, bids were received electronically for the Bluff Top Railing Project, CC-1631. City
Council action is requested to award the construction contract to J&A Engineering Corporation, doing
business as J&A Fence, the most responsive and responsible bidder.
Financial Impact:
Total construction cost for the project, including contingency and supplementals, is $1,370,284.
$1,370,284 is available in the Blufftop Grant Fund account 125686001.82800.
Recommended Action:
A)Accept the most responsive and responsible bid submitted by J&A Fence in the amount of
$1,096,227; and,
B)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, or provide staff with alternative action.
Analysis:
The existing metal railing along the bluff top and on the stairways along Bluff Top Park is deteriorated
and in need of replacement, due to the exposure to the marine environment. The Bluff Top Park area
is on the ocean side of Pacific Coast Highway from 9th Street to Seapoint. The existing metal railing,
located adjacent to the bluff top trail will be replaced with a new wooden lodgepole railing , as
approved by City Council on December 16, 2019.
Additionally, the existing stairway metal railing within this span will be replaced with a new anodized
City of Huntington Beach Printed on 7/14/2021Page 1 of 2
powered by Legistar™
File #:21-541 MEETING DATE:7/20/2021
aluminum railing. The base bid for the project included stainless steel for the stairway metal railing
with an alternate bid option to use anodized aluminum. Both stainless steel and anodized aluminum
are preferred materials to use for the stairway railing; however, there is a $65,252 cost savings to
utilize anodized aluminum in lieu of the stainless steel. These improvements are needed to maintain
the safety and accessibility of beach path and stairway users.
Bids were received electronically on July 13, 2021, with the following results:
BIDDER'S NAME BID AMOUNT WITH ALTERNATE BID ITEMS FOR
ANODIZED ALUMINUM STAIRWAY RAIL (Amount at
Electronic Bid Opening and Basis of Award)
J&A Fence $1,096,227
ACE Fence Company $1,138,807
Minako America Corporation $1,168,315
Greenfield Fence, Inc.$1,238,650
Staff recommends awarding a contract to J&A Fence in the amount of $1,096,227. J&A Fence has
recently provided acceptable work in the City of Huntington Beach in constructing the perimeter
wrought iron fencing at the Newland House Museum earlier this year. The total Bluff Top Park Railing
project cost is estimated to be $1,370,284, which includes the construction contract, project
management and inspection ($109,623), and fifteen percent (15%) construction contingency
($164,434).
This project is the first phase of two phases, with the second phase being the improvements to the
multi-use trail that will follow this winter.
Public Works Commission Action:
The Public Works Commission reviewed and approved CC-1631 on June 16, 2021.
Environmental Status:
The project is categorically exempt pursuant to Class 1, section 15301d of the California
Environmental Quality Act.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1.Vicinity Map
City of Huntington Beach Printed on 7/14/2021Page 2 of 2
powered by Legistar™
ATTACHMENT 1
City of Huntington Beach
File #:21-550 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Approve an appointment to the Mobile Home Advisory Board (MHAB)
Statement of Issue:
The City Council is asked to approve the appointment of one Owner Member to the Mobile Home
Advisory Board.
Financial Impact:
Not applicable.
Recommended Action:
Approve the appointment of Vickie Talley as an Owner Member of the MHAB effective immediately
through August 5, 2025.
Alternative Action(s):
Do not approve one or more of these appointments and direct staff accordingly.
Analysis:
The Mobile Home Advisory Board (MHAB)is an advisory body to the City Council that works on
issues that may improve the quality of life in Huntington Beach’s 18 mobile home parks.The MHAB
addresses these issues by providing a forum for communication among mobile home residents,park
owners,and the City Council.The MHAB is comprised of nine members who equally represent
mobile home park residents, park owners, and the Huntington Beach community at large.
The MHAB currently has a vacancy for one mobile home park owner member,with a second opening
up at the end of this month.The City duly advertised the vacancies,and City Council liaisons,Kim
Carr and Mike Posey,recommend appointing Vickie Talley as an owner member of the MHAB.
Should she be appointed,her term would become effective immediately and expire on August 5,
2025.
It should be noted that Ms.Talley does not own a mobile home park in the City of Huntington Beach.
However,Chapter 2.112 (Mobile Home Advisory Board)of the Huntington Beach Municipal Code
states that the MHAB shall be represented by three owner members or their designated nominees
City of Huntington Beach Printed on 7/16/2021Page 1 of 2
powered by Legistar™
File #:21-550 MEETING DATE:7/20/2021
states that the MHAB shall be represented by three owner members or their designated nominees
(who may or may not reside in Huntington Beach).Ms.Talley has secured and submitted three
letters of nomination from Huntington Beach park owners who support her appointment to the MHAB.
She has demonstrable knowledge in mobile home issues,as the current Executive Director of the
Manufactured Housing Education Trust,a non-profit organization that represents and educates
mobile home owners,community leaders,and the public about the manufactured housing
community. Ms. Talley also previously served as an MHAB owner member.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1.Application for Appointment and Nomination Letters - Vickie Talley
City of Huntington Beach Printed on 7/16/2021Page 2 of 2
powered by Legistar™
Application for Appointment to a Citizen
Commission, Board, Committee, or Task Force
Page 1
Thank you for your interest in applying to serve on a Huntington Beach citizen advisory body!
Members of the City’s boards, commissions, committees, or task forces serve four-year terms with a two-term limit.
Appointment to a City advisory body is at the City Council’s discretion. In addition, all appointed members must be United
States citizens, residents of Huntington Beach during the appointment process and term, and may not hold more than one
advisory group membership at the same time. Specific definitions of the role and purpose of these advisory groups are
defined in Chapter 2.100 (Operating Policy for Boards and Commissions) of the City’s Municipal Code.
A BOARD is a body of members appointed by the City Council pursuant to City Charter Section 405 to serve in a
continuing advisory capacity to the City Council.
A COMMISSION is a body of members appointed by the City Council pursuant to City Charter Section 405 that may have
decision-making authority over those activities delegated to them by the City Council.
A COMMITTEE is a body of members appointed by the City Council pursuant to City Charter Section 405 on an ad hoc
basis to advise the City Council on a particular matter.
To assist you in selecting a citizen body that would be compatible with your interests and qualifications, a description of
each body is available on the City's Boards and Commissions page.
IMPORTANT NOTICE: Before applying, please acknowledge the following:
All Council appointed commission, board, and committee members are required bi-annually to take harassment training
and two hours of ethics training.
You are applying for a public position. As such, the information provided in your application is a public record and
cannot be kept confidential.
Applicants must be U.S. citizens, residents during the appointment process and term, and may not hold more than one
membership at a time.
* = required response
Last Name *First Name *Middle Initial Date *
Name of Board, Commission, Committee, or Task Force *
Length of Residency in Huntington Beach *
Occupation *
United States Citizen?*Currently Serving on a City Board
or Commission?*
I acknowledge the requirements listed in the notice above.
Talley Vickie M.12/7/2020
Mobile Home Advisory Board
N/A for this appointment.
Executive Director, Manufactured Housing Educational Trust
Yes No
Yes No
Home Address:*
Phone Numbers
Personal
Type *(?)Number *
Phone Numbers
Business
Type (?)Number
Personal Email *
City
Laguna Hills
State
CA
Postal / Zip Code
Street Address
Address Line 2
home
Page 2
Educational Background *
Professional Licenses and/or Associations *
Professional Experience *
Special Knowledge or Skills *
Civic Interests and/or Service Memberships?*
How will your qualifications best serve the citizen advisory group that you are applying for, and why do you wish
to serve on this group?*
It is the policy of the City Council to make appointments to the citizen commissions, boards, and committees,
based on the needs of the city, as well as the interests and qualifications of each applicant. Selection will be
made without discrimination based on the race, creed, gender, or sexual orientation of the applicant.
Additional information concerning a particular commission, board, committee, or task force or the application
process is available through the staff support department identified above. General questions can be directed to
Cathy Fikes, (714) 536-5553.
BS from University of Redlands, Business Administration
Executive Director or mobile home park owners association, the Manufactured Housing Educational Trust
I have been working with mobile home park owners for the past 38 years.
I am aware of all aspects of ownership, management and residency in mobile home parks.
I have extensive experience in local government as a planning commissioner, city council member and mayor. I
have served on county boards and commissions.
Currently this Board is not functioning with a full representative membership as outlined in its bylaws. It is a 9
member board with three independent representatives from the community, three representatives who live in
Huntington Beach mobile home parks and three representatives of mobile home community owners. It is unfair
to have this Board operate without proper representation. I previously served on the committee and would like
to volunteer to serve again so that there is adequate representation for all sides in the matters discussed.
City of Huntington Beach
File #:21-531 MEETING DATE:7/20/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Oliver Chi, City Manager
PREPARED BY:Ursula Luna-Reynosa, Director of Community Development
Subject:
Approve Middle Income Housing Program by adopting Resolution No. 2021-43 and Resolution
No. 2021-44; Authorize the City Manager to enter into Public Benefit Agreements and execute
Middle-Income Housing Program agreements, and determine that these actions are not
subject to the California Environmental Quality Act
Statement of Issue:
City Council approval is requested for the following items related to the Middle Income Housing
Program, in order to enable the acquisition and conversion of two market-rate apartment complexes
into workforce housing within the City of Huntington Beach:
1.Resolutions approving, authorizing, and directing execution of joint exercise of powers
agreements supporting the issuance of bonds for the production, preservation, and protection
of essential middle-income rental housing;
2.Joint Exercise of Powers Agreements;
3.Public Benefit Agreements, which may result in the City receiving surplus revenue from the
future sale of the projects; and
4.Regulatory Agreements and Declaration of Restrictive Covenants.
Financial Impact:
If approved, the Middle Income Housing Program would result in the creation of 649 middle income
housing units at the two current market-rate apartment complexes in question. Based on the terms
of the program, the identified units would be created at an average cost of $23,169 per door, which is
an efficient and cost-effective way of establishing affordable housing units.
Based on current market conditions, the estimated cost of acquiring and rehabilitating 649 units and
income restricting them at “middle income” levels would be between $56,000 and $85,000 per door,
City of Huntington Beach Printed on 7/14/2021Page 1 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
depending on the level of income targeting. For further comparative purposes, the City’s recent
experience with an affordable housing project being developed by Jamboree Housing for permanent
supportive units resulted in an approximate cost of $70,000 per door cost, and the City of Santa
Ana’s average subsidy is approximately $90,000 per door for similarly restricted units.
To fund the Middle Income Housing Program, the City would have to forgo future property tax
revenues for up to a 30 year period, with the first year amount estimated at $370,655. Assuming a
2% increase in property values annually, the average annual property tax subsidy over a 30 year
period would be $501,225. However, of note, between Year 15 and Year 30 (the end of the life of the
bonds), the City, at its sole discretion, may force a sale of the middle-income rental housing projects
and the City would receive the sale proceeds. Over a 30-year period, the City could realize
$647,620,251 in proceeds at Year 30, following payoff of debt.
Recommended Action:
A) Adopt Resolution Nos. 2021-43 and 2021-44 approving, authorizing, and directing execution of
joint exercise of powers agreements relating to the CMFA Special Finance Agency VII and VIII
(collectively the “Agency”) supporting the Agency’s issuance of bonds for the production,
preservation, and protection of essential middle-income rental housing (“Middle-Income Housing
Program”); and,
B) Authorize and direct the City Manager to enter into Public Benefit Agreements, substantially in the
form attached, with the Agency, which may result in the City receiving surplus revenue from the future
sale of the Projects; and,
C) Authorize and direct the City Manager to execute related documents and take any additional
actions that may be required to implement the Middle-Income Housing Program; and,
D) Determine that this action is not subject to the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060(c)(3), because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, and it is not a "project"
pursuant to Section 15378(b)(5) of the State CEQA Guidelines.
Alternative Action(s):
Do not adopt the resolutions, enter into the Public Benefit Agreements, or execute related documents,
or take any additional actions that may be required to implement the Middle-Income Housing
Program.
Analysis:
A.BACKGROUND
City Council held a work study session on February 16, 2021, to evaluate a middle income workforce
housing program as a means of achieving the public policy objective to create a continuum of
affordable housing. Middle income housing is designed for persons earning 80% and up to 120% of
area median income (AMI). This segment is considered the “missing middle” between lower income
(≤80% AMI) affordable housing and market-rate (>120% AMI) housing since no funding sources exist
for this housing population. At their January Strategic Planning Session, the City Council expressed
City of Huntington Beach Printed on 7/14/2021Page 2 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
the importance of providing middle income workforce housing as a means to transition people out of
lower-income affordable housing. Currently, one-third of the City’s affordable housing portfolio, or
660 units, are moderate income units between 110% - 120% AMI. Of the 660 units, half are rental
units and half are for-sale units.
California Community Housing Agency (CalCHA), working with Catalyst as the project sponsor, was
the first Joint Powers Authority (JPA) to acquire a residential apartment project with tax-exempt
“essential government bonds”. They have since closed on nine transactions. There are other JPAs
and other project sponsors doing similar transactions. As a public agency, the JPA is a tax-exempt
entity that is not required to pay property taxes. This property tax abatement, coupled with the tax-
exempt financing, provides a significant advantage in terms of cash flow, which allows the JPA to
compete with market-rate buyers, and enables the JPA to make the units available to low and
moderate income households. The typical split of units is one third at 80% AMI, one third at 100%
AMI, and one third at 120% AMI. It is important to note that a non-government entity could acquire a
property and restrict units to 80% AMI, and those units would qualify for the “welfare exemption” and
would not have to pay property taxes on any units at 80% AMI or less.
The project sponsor acts on behalf of the JPA as the asset manager. For all intents and purposes,
the residents of these projects interface with the project sponsor or their designated property
management firm. Annual rent increases would be capped at no more than 4%, which is less than
the rent limits under AB1482, the recently adopted State tenant protection legislation. It is important
to note, existing tenants are not displaced, regardless of household income, as the conversion of
market-rate units to middle income units occurs over a few years as leases expire and current
tenants move on to other housing opportunities.
The JPA issues the tax exempt governmental bonds. As the bond issuer, the JPA will oversee the
underwriting of the bonds prior to issuance and the performance of the project sponsor during the life
of the bonds.
Opportunity to Acquire Two Existing Apartment Complexes
Catalyst has approached the City with an opportunity to acquire two existing apartment complexes in
Huntington Beach and convert them into “workforce housing” units, as market-rate leases come due.
Elan and Breakwater are the two apartment complexes (the “Properties”), where the rents range from
$1,984 - $3,255 per month. Collectively, between the Properties, there are a total of 676 dwelling
units that generate a combined $2,647,536 annually of basic levy property tax revenue. The City’s
annual 14% share is $370,655. Based upon the current valuation (2020-21 Secured Property Tax)
and a two percent annual increase in valuation, the City would have reduced property tax revenue of
an estimated $6,409,893 over 15 years, and $15,036,763 over 30 years for the Projects.
Elan is located at 18504 Beach Boulevard, Huntington Beach and is comprised of a total of 274 units
(27 units are restricted at 110% AMI per the City’s Inclusionary Zoning Ordinance). This project was
completed in 2015 and generates $1,253,400 annually of basic levy property tax revenue. The City
receives 14% which equates to $175,476 annually. The market-rate units rent in the range of $1,984
- $3,034 with a current overall vacancy rate of 5.11%. This property last sold in July 2016 for
$131,000,000. Catalyst has negotiated a sales price of $136,000,000.
Breakwater is located at 16761 Viewpoint Lane, Huntington Beach and is comprised of a total of 402
City of Huntington Beach Printed on 7/14/2021Page 3 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
units (all market rate). This project was completed in 1972 and generates $1,394,136 annually of
basic levy property tax revenue. The City’s annual 14% share is $195,179. The rents range from
$2,319 - $3,255 with a current vacancy rate of 5.77%. This property last sold in December 2017 for
$134,000,000. Catalyst has negotiated a sales price of $185,000,000. Since the 2017 sale, the
current owner has invested significantly in renovations and capital improvements.
California Municipal Finance Authority
California Municipal Finance Authority (CMFA)is the City’s preferred JPA whose track record and fee
structure are appealing.CMFA was created on January 1,2004 pursuant to a joint exercise of
powers agreement to promote economic,cultural and community development,through the financing
of economic development and charitable activities throughout California.CMFA is the largest issuer
in the State for all conduit bond financing.They have a 16 year track record with zero housing
defaults on over 1,000 transactions of which 600 are affordable housing projects.To date,over 325
municipalities,including the City of Huntington Beach,have become members of CMFA.CMFA is
the only financing authority which has granted over $25M dollars directly to local governments and
501c3 nonprofit organizations during the past sixteen years.CMFA will grant 25%of the issuance
fees to the general fund of the City.Such grant may be used for any lawful purpose of the City.
CMFA will donate 25%of the issuance fees to a charitable organization of the City’s choice within the
host municipality for each transaction.
Execution of the Joint Exercise of Powers Agreement
In order for the Agencies to have the authority to serve as the issuer of the bonds for the Properties,it
is necessary for the City of Huntington Beach to become a member of the Agency (CMFA Special
Finance Agency VII and VIII).
The Joint Exercise of Powers Agreement provides that the Agency is a public entity,separate and
apart from each member executing such agreement.The debts,liabilities and obligations of the
Agency do not constitute debts, liabilities or obligations of the members executing such agreement.
The bonds to be issued by the Agency for the Properties will be the sole responsibility of the
borrower,and the City will have no financial,legal,moral obligation,liability or responsibility for
Properties or the repayment of the bonds for the financing of the Properties.All financing documents
with respect to the issuance of bonds will contain clear disclaimers that the bonds are not obligations
of the City or the State of California, but are to be paid for solely from funds provided by the borrower.
There are no costs associated with membership in the Agency and the City will in no way become
exposed to any financial liability by reason of its membership in the Agency.In addition,participation
by the City in the Agency will not impact the City’s appropriations limits and will not constitute any
type of indebtedness by the City.
B.ANALYSIS
The Properties require a City subsidy in the form of forgone property taxes for the duration of the
essential governmental bonds over a thirty-year period. Due to the required subsidy, City staff, with
the support of the National Development Council (NDC) who serves as the City’s technical advisor,
has independently evaluated the public benefit of the Middle Income Housing Program as it relates to
the Properties as well as preliminary project feasibility analysis.
City of Huntington Beach Printed on 7/14/2021Page 4 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
Public Benefit
To evaluate the public benefit, staff has reviewed whether the amount of subsidy is appropriate for
the level of affordability in terms of the proposed “cost per door” for each unit. In the City’s recent
experience with an affordable housing project being developed by Jamboree Housing, the City
subsidy represented a cost of approximately $70,000 per door for permanent supportive housing (33
units at 30% AMI, 9 units at 50% AMI, and one manager’s unit). The City of Santa Ana’s average
subsidy is approximately $90,000 per door for similarly restricted units. The city subsidy is leveraged
with other funding sources so the total subsidy per door is much greater than the city subsidy alone.
Some of the units are currently rent restricted at 110% AMI with 55 year covenants. Excluding the
restricted units there are 649 market-rate units within the Properties. The City currently receives
approximately $370,655 annually in property taxes for the Properties. As previously stated, the City
will forego approximately $15,036,763 in property taxes over 30 years ($23,169 per door) to create
649 middle income rent restricted units. These figures assume a 2% annual increase in property
taxes and represent the City’s 14% share of the base tax levy. Further, these numbers don’t factor in
a net present value calculation and simply assume the City has access to 100% of the foregone
property tax revenue today, which clearly is not the case. If a 3% net present value calculation is
applied, the cost per door is approximately $7,000 per door less.
The above per door subsidy calculations are not a compatible comparison as the per door examples
are for new construction and extremely low and very low income levels. If an affordable housing
developer were to approach the City with a proposal to acquire and rehabilitate 649 units and income
restrict them at “middle income” rents, staff expects that the requested subsidy, assuming that the
City is the sole funding source, would be between $56,000 and $85,000 per door depending on the
level of income targeting. This subsidy is calculated by subtracting an average, blended restricted
rent from the average, blended market rent to determine the revenue gap (due to the artificial
restriction on rents) on the 649 units over 30 years. As an example, if the blended rental rate was
$200 less than the market-rate rent over 30 years, this would amount to a subsidy of $72,000 per
unit. Therefore, this range of $56,000 to $85,000 is significantly higher than the cost per door utilizing
the essential government bonds program. Further, the City would likely be reluctant to utilize
restricted affordable housing funds on moderate income units and would prefer to use such funds on
more deeply restricted units, such as very low and low income units. Staff’s conclusion is that this
essential government bond program to provide middle income housing units is a cost effective way to
create such housing units.
While staff is overall supportive of this program should the City Council desire to further middle
income or workforce housing, it should be noted that the foregone property tax revenue is
unrestricted, General Fund revenue and can fund public safety services as well as parks and other
infrastructure needs. It is a policy decision to prioritize the public benefits that can be achieved with
this money. Further, while there is pending legislation, as of today, under State Law, these units
cannot count toward the City’s Regional Housing Needs Allocation (RHNA) for the 2021-2029 cycle.
If Assembly Bill 787 were to pass, the bill would authorize the City to include qualifying converted
units in its annual progress report and reducing the City’s share of regional housing need for the
income category of the converted units on a unit for unit basis. The bill would apply only to
converted units that meet specified requirements, including that the rent for the unit prior to
conversion was not affordable to very low, low-, or moderate-income households and the initial post
City of Huntington Beach Printed on 7/14/2021Page 5 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
conversion rent for the unit is at least 10% less than the average monthly rent charged over the 12
months prior to conversion. Based on the current draft legislation, approximately 232 of the units
would meet the specified requirements.
Public Equity
Beyond the public benefit of creating the restricted middle income units, the Properties also represent
an investment opportunity with long term financial benefits for the City in the form of public equity.
Under a recorded Public Benefit Agreement, the City, at its sole discretion, may force a sale of the
Properties between year 15 and year 30 (the end of the life) of the bonds, and the City would receive
the net sale proceeds. Since the Properties are financed through the issuance of tax-exempt bonds
and there are no equity partners, all excess sale proceeds after payoff of the bonds go the City. Over
a 30-year period the Properties could realize $647,620,251 in valuation at the end of year 30
(assuming an annual appreciation of 1.8%). The City could realize significant value in owning major
real estate assets that could be sold to market-rate buyers, thereby maximizing value to the City. Or
the assets could be sold to affordable housing developers to be rehabilitated with new, more deeply
restricted affordable housing covenants recorded on the Properties. This decision could be made in
the future depending upon the City’s needs and policy priorities.
From an investment perspective, if the City were to invest the foregone property taxes in the Local
Agency Investment Fund (LAIF) at 3%, the average annual rate of return over the past 30 years, the
City’s investment would grow to $18,163,088 over 30 years. The average rate of appreciation for real
estate in California is approximately 6% annually. If the City were to invest the foregone property
taxes in real estate instead of LAIF, and assume a 6% annual rate of return, the City’s investment
would grow to $31,061,511 (a difference of almost $13 million). Investing the foregone property taxes
in real property will create significant public equity that can help secure the financial stability of the
City of Huntington Beach.
Environmental Status:
Pursuant to Sections 15060(c)(2) and 15060(c)(3) of the California Environmental Quality Act
(CEQA) guidelines, CEQA does not apply to this action because it will not result in a direct or
reasonably foreseeable indirect physical change in the environment and it is not a “project” pursuant
to Section 15378(b)(5) of the State CEQA Guidelines.
Strategic Plan Goal:
Strengthen long-term financial and economic sustainability
Attachment(s):
1.Resolution No. 2021-43 for The Elan
2.Resolution No. 2021-44 for The Breakwater Apartments
3.Public Benefit Agreement by and between CMFA Special Finance Agency VII and the City of
Huntington Beach relating to the issuance of Essential Housing Revenue Bonds for The
Breakwater Apartments
4.Public Benefit Agreement by and between CMFA Special Finance Agency VIII and the City of
Huntington Beach relating to the issuance of Essential Housing Revenue Bonds for The Elan
5.Joint Exercise of Powers Agreement relating to the CMFA Special Finance Agency VIII for The
City of Huntington Beach Printed on 7/14/2021Page 6 of 7
powered by Legistar™
File #:21-531 MEETING DATE:7/20/2021
Elan
6.Joint Exercise of Powers Agreement relating to the CMFA Special Finance Agency VII for The
Breakwater Apartments
7.Regulatory Agreement and Declaration of Restrictive Covenants by and between CMFA
Special Finance Agency VIII and Wilmington Trust, National Association, as Trustee relating to
The Elan
8.Regulatory Agreement and Declaration of Restrictive Covenants by and between CMFA
Special Finance Agency VII and Wilmington Trust, National Association, as Trustee relating to The
Breakwater Apartments
City of Huntington Beach Printed on 7/14/2021Page 7 of 7
powered by Legistar™