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HomeMy WebLinkAbout2022-02-15Minutes City Council/Public Financing Authority City of Huntington Beach Tuesday, February 15, 2022 4:00 PM -Study/Closed Sessions 6:00 PM -Regular Meeting 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 -4:00 PM ROLL CALL Present: Absent: Peterson , Bolton, Posey, Delgleize, Carr, Moser, and Kalmick None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet: Study Session #1 (22-131) PowerPoint Presentation titled Policy Discussion Concerning Cannabis-related Taxation & Regulation received from Sean Joyce, Interim City Manager. #1 (22-131) A document titled Methodology: Core Decision Analytics (CODA) conducted N=400 live telephone inteNiews among City of Huntington Beach likely voters from Thursday, November 18-Sunday, November 21, 2021, received from Councilmember Peterson. PUBLIC COMMENTS PERTAINING TO STUDY SESSION I CLOSED SESSION ITEMS (3-Minute Time Limit) -2 Public Speakers The number [hh:mm :ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/governmentlagendas. Michael Moussalli, a resident of Huntington Beach and owner of two cannabis manufacturer/distribution businesses, was called to speak, shared his positive business experiences in Costa Mesa, and expressed his interest in working to help ensure best practices are also established in Huntington Beach. (00:02:57) Kandice Hawes-Lopez, Founder and Director Emeritus, Orange County NORML for the reform of marijuana laws, was called to speak, stated support for responsibly regulating cannabis businesses , and Council/PFA Regular Meeting February 15, 2022 Page 2of15 offered to assist and share their experience and knowledge for the benefit of the City, business owners and consumers . (00 :04:55) STUDY SESSION 1. 22 -131 Discussion of the Policy Issues concerning the Cannabis-related Taxation and Regulation Interim City Manager Sean Joyce introduced Senior Administrative Analyst, Grace Yoon -Taylor and Senior Planner Hayden Beckman who presented a PowerPoint entitled Policy Discussion concerning Cannabis-related Taxation & Regulation with slides titled : Background, Background-Continued, Policy Decision 1-5 by the City Council, Policy Decision: What Types of Cannabis Industry, Commercial Cannabis -Categories, Cannabis Industry Types: Retail or Non-Retail? Comparison with other cities, Policy Decision: What types of businesses should the City Allow?, Policy Decision: How many licenses should be allowed and how?, Policy Decision: How many licenses should be issued and how?, Policy Decision 2-1 : If cap on number of licenses, how to select?, Policy Decision 2-1: If cap on number of licenses, how to select?, Policy Decision: Where to locate through Zoning & Buffer requirements?, Zoning Buffer Restriction -Comparison w/other cities, Policy Decision : Where to locate through Zoning & Buffer requirements? (3), GIS Maps for Eligible Areas (Zoning & Buffers (2), Policy Decision : Revenue Generating Options, Policy Decision 4-1: Ta x Rate, Projected Tax Revenue & Costs, Policy Decision: Revenue Generating Options, Policy Decision: Security, Inspection, and Enforcement Protocols (3), Summary: Non-Consensus Policy Areas, and Next Steps I Recommendations . Councilmember Kalmick thanked staff for the detailed report and explained his opinion that if Council chooses to proceed with this item, the discussion needs to result in determining whether to proceed with placing a tax measure on the June ballot. The results of the June tax vote would be indicative of how to proceed in preparing for the November ballot. Mayor Pro Tern Posey stated he is aware of competing interests and initiatives, and his support for allowing voters to decide. He further stated his opinion that projected revenue is insufficient to offset costs. Mayor Pro Tern Posey and audience participant Dana Cisneros, an attorney, discussed the industry system called "Metric" which tracks each plant from seed to sale. Ms . Cisneros explained there are financial service providers that interact with FDIC insured banks and credit unions to process non- cash transactions. Mayor Pro Tern Posey stated he has a number of questions he would like answers to before he is ready to make a decision. Councilmember Peterson stated his opinion there is no urgency for this topic and stated he will be able to provide answers for any Councilmember questions . Mayor Pro Tern Posey stated his questions include how many customers could be expected per store from a population of 20,000 -30,000 people; average number of visits per month per customer; average transaction amount; monthly gross; the impact on the Police Department related to the illicit market; effect on DUI arrests ; and taxation tipping point, or when does legal product become too expensive and drive business to the illicit market. Council/PFA Regu lar Meeting February 15, 2022 Page 3of15 Michael Moussalli explained his experience in Costa Mesa related to taxes at city and state levels, as well as different grower and retail tax levels ; and , provided examples of compliance and product testing costs that can quickly make a business unsustainable, especially if a city sets the tax rate too high. Councilmember Carr confirmed with Mr. Moussalli that product delivery is considered retail , and he ex plained the state has two licenses: storefront location with delivery, or delivery only. Councilmember Kalmick confirmed that lounges are not being considered, and only indoor cultivation would be permitted . Councilmember Moser, in referencing the tax options suggested by the Ad Hoc Committee, stated her support for more tax flexibility by allowing a wider spread between the low and high end . Mr. Moussalli explained that city ta xes are applied to gross sales, and added that IRS regulations prohibi°t distribution or sale businesses from writing off any expenses . Councilmember Posey and Mr. Moussalli discussed the unlikely possibility that marijuana will be moved from Schedule I to Schedule II at the Federal level ; and if it were, the process to re -write state and city laws would take considerable time. Mayor Delgleize confirmed with Mr. Moussalli that there are state officials who can provide support and resources for marijuana businesses . Councilmember Bolton stated her support for Council moving forward as quickly as possible in order to maintain control. Councilmember Kalmick stated his support for Council asking staff to prepare a marijuana initiative for the March 1, 2022, Council meeting in order to meet the March 11 deadline for a June ballot initiative. He stat ed his e x pectation for another Study Session to review maps and receive responses from staff on the questions posed by Council during tonight's Study Session. Councilmember Peterson stated his support for a 4 -6% tax rate , suggested that Councilmembers review the Supplemental Communication survey results (from a survey sponsored by one of the public initiative proponents) to better understand resident opinions, and the majority desire to see a ballot initiative on this issue. REC ESSED TO CLOSED SESSION -5:03 PM A motion by Moser, and second by Posey, to recess to Closed Session for Items# 4 -6 . With no objections, the motion passed. CLOSED SESSION ANNOUNCEMENT(S) 2. 22 -133 Mayor Delgleize Announced: Pursuant to Government Code§ 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator Sean Joyce, Interim City Manage r, who will be participating in today's Closed Session discussions regarding labor negotiations with: Non-Represented (Non-Associated) Employees (NA) Council/PFA Regular Meeting February 15, 2022 Page 4of15 3. 22-134 Mayor Delgleize Announced: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiators: Sean Joyce, Interim City Manager and Brittany Mello, Administrative Services Director, who will be participating in today's Closed Session discussions regarding labor negotiations for: City Manager CLOSED SESSION 4. 22-129 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency 1 designated representatives: Sean Joyce, Interim City Manager. Employee Organizations: Non-Represented (Non-Associated) Employees (NA) 5. 22-130 CONFERENCE WITH LABOR NEGOTIATORS (Unrepresented Employee) Government Code section 54957.6. Title: City Manager, City Designated Representatives: Sean Joyce, Interim City Manager and Brittany Mello, Administrative Services Director 6. 22 -140 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Hernandez (Angela) v. City of Huntington Beach, et al., OCSC Case No. 30-2020-01137506 6:00 PM -COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING -6:03 PM ROLL CALL Present: Absent: Peterson, Bolton, Posey, Delgleize , Carr, Moser, and Kalmick None City Clerk Robin Estanislau announced that Chief Assistant City Attorney Mike Vigliotta is attending tonight's meeting on behalf of City Attorney Michael Gates who is involved in an active court trial. PLEDGE OF ALLEGIANCE -Led by Mayor Pro Tern 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 . 7. 21-964 Zarathushti Ma neck Bhujwala of the Zoroastrian Community and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY -None AWARDS AND PRESENTATIONS Council/PFA Regular Meeting Februa ry 15, 2022 Page 5of15 8. 22-125 Mayor Delgleize presented the Mayor's HB Excellence Award for the month of February to Justin Torres, Landscape Maintenance Supervisor, Department of Public Works Mayor Delgleize explained that the Mayor's HB Excellence Award is selected by fellow employees for individuals that demonstrate humility, social awareness, passion, exceptionality, integrity, and are team oriented . Justin started his career with the City in 2005 as a maintenance worker and has been promoted five times during his 17 years of service. Justin 's team oversees landscaping and playground maintenance for 78 parks in Huntington Beach , plus street medians and City facilities, and he provides excellent customer service . Denny Bacon , Public Works Operations Manager, thanked Justin for his outstanding leadership when Covid-19 required sudden and important changes to ensure everyone's safety, and noted Justin's Arborist and Playground Equipment Inspector certifications . Manager Bacon described Justin as an honest person , who is educated, and delivers. Justin stated he loves his job working in the community where he was born and raised , and thanked Mayor Delgleize for her support for City parks . Mayor Delgleiz e provided a statement of condemnation in response to Anti-Semitic messaging seen in a Huntington Beach neighborhood. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act , City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet: Administrative Items #17 (22-107) PowerPoint Presentation ti t led City of Huntington Beach -FY 2020121 Year-End Audit Results & FY 202 1122 Mid-Year Budget Update received from Dahle Bulosan, Chief Financial Officer. Councilmember Items #18 (22-132) Letter of Support regarding the Balsa Chica Lowlands Restoration Project received from Assemblywoman Janet Nguyen. #18 (22-132) Four (4) emails received regarding the Balsa Chica Wetlands. #19 (22-137) Four (4) emails received from mobile home residents . PUBLIC COMMENTS (2-Minute Time Limit) -23 In -Person and 7 Call-In Speakers The number [hh:mm :ss] following the speakers' comments indicates their approx imate starting time in the archived video located at http://www.surfcity-hb.org/governmentlagendas . Carol Rohr, Pre sident of the Skandia Homeowners Associat ion , was invited to speak and shared details related to the recent purchase of the mobile home park by what she described as a predatory investment group, IPG, and thanked City Council and Interim City Manager Joyce for their support and efforts to provide a fair and equitable solution to the problem for the City's seniors, veterans, disabled, retired and Council/PFA Regular Meeting February 15, 2022 Page 6of15 those living on fixed incomes. She stated that everyone should focus on a permanent resolution to the problem . (01 :26 :41) Norma Hannon , a 97-year-old resident of Huntington Beach , was called to speak and shared the challenges of living on a fixed income with increasing rents, and asked City Council to ensure an amendment to create a carve out for mobile home parks for City Charter Section 803 be placed on the November 2022 ballot as a fair and equitable solution to the problem. (01 :28 :33) Bob Herold, a 90-year-old resident of Skandia Mobile Home Park, was called to speak and shared the challenges of living on a fixed income with increasing rents, and asked City Council to ensure an amendment which would create a carve out for mobile home parks for City Charter Section 803 be placed on the November 2022 ballot as a fair and equitable solution to the problem . (01 :29:09) Suzan Neil , a resident of Skandia Mobile Home Park, was called to speak and shared the challenges of living on a fixed income with increasing rents , and asked City Council to ensure an amendment to create a carve out for mobile home parks for City Charter Section 803 be placed on the November 2022 ballot as a fair and equitable solution to the problem . (01:31 :14) Guy Morrow, a resident of Skandia Mobile Home Park, was called to speak and shared the challenges of living on a fixed income with increasing rents, and asked City Council to ensure an amendment to create a carve out for mobile home parks for City Charter Section 803 be placed on the November 2022 ballot as a fair and equitable solution to the problem. (01 :32 :33) Art Estrada , a resident of Skandia Mobile Home Park, was called to speak and shared the challenges of living on a fixed income with increasing rents, and asked City Council to ensure an amendment to create a carve out for mobile home parks for City Charter Section 803 be placed on the November 2022 ballot as a fair and equitable solution to the problem . (01:34 :12) Gina Alexander, a member of the Skandia Mobile Home Park Homeowner Association , was called to speak and shared her opinions on blustering threats by the predatory Park owners and industry managers who are victimizing mobile home park residents, and encouraged local government to resist addressing the challenges of living on a fixed income with increasing rents. (01 :36:25) Dan Pantano, a resident of Skandia Mobile Home Park, was called to speak and shared his personal experience in dealing with Manufactured Housing Educational Trust (MHET) Rental Assistance Program , which apparently is no longer accepting new applications, and the predatory practices of Skandia's new property managers. (01 :38:32) Tim Geddes, a long-time residentpf Huntington Beach , was called to speak and stated his appreciation and support for Councilmember Items No. 19 regarding a Senior Resource Fair, which he expects to benefit the victims of space rent spiking by corporate mobile home park owners. He further shared his opinions on the inadequate and restrictive assistance program offered by Manufactured Housing Education Trust (MHET), and stated local government must do what it can to protect these vulnerable citizens. (01 :41 :50) Sheila Lugenbuehl, resident of the Skandia Mobile Home Park , was called to speak, and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01 :43:46) Council/PFA Regular Meeting February 15, 2022 Page 7of15 Michael Lugenbuehl, a resident of Skandia Mobile Home Park, was called to speak , described the planned unfair rent increases, and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01 :45:29) Patricia Taylor, a resident of Rancho Huntington Mobile Home Park, was called to speak and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01:47:10) Richard Smith, a veteran and resident of Skandia Mobile Home Park, was called to speak and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01 :49:22) Serena Taylor, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01 :51 :20) Douglas Taylor, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (01 :52:37) John Buzan, a long -time resident of Huntington Beach, was called to speak and shared his perspective on the domino effect by describing Federal investigations into alleged illegal activities of politicians. (01 :55:01) Pano Frousiakis , a Candidate for City Council in 2022, was called to speak and stated his support for the effort to make it possible for the residents to vote in November regarding a mobile home carve out. Mr. Frousiakis announced he and Freedom Link are recognizing a local small business that has served the community for over 70 years, by planning a lunch event on Friday, February 18, 12 noon, at Lucci's Deli on Adams Avenue at Magnolia Street. (01 :57:21) Dana Cisneros was called to speak and thanked City Council and staff for the great Study Session regarding Cannabis-related Taxation and Regulation earlier. Ms. Cisneros encouraged Council to think about making changes to any ordinance by resolution with language that states a range of values, or upper limit, to allow for flexibility. (01 :59:33) Ralph Bauer, long-time resident, former Mayor of Huntington Beach and Korean War veteran, was called to speak, stated his condemnation of last night's hate crime in Huntington Beach , and distributed handwritten copy of his views that included other e.xamples of published hate literature. (02:01 :45) Maureen was called to speak and shared her experience of nearly being in an accident without proper space to swerve due to the new poles placed on Delaware Street , and shared her opinion the poles are creating a more dangerous situation for drivers and should be removed . (02 :04:42) Mary Kyle, a 23-year resident of Huntington Beach , was called to speak and reported that as a resident of the neighborhood that experienced last night's hate crime, she appreciates the actions of neighbors and police with the support of Council to address the situation. (02:06:53) Victor Leipzig, a 40-year resident of Huntington Beach and former Councilmember, was called to speak and stated his support for Mr. Bauer's comments that Antisemitism has no place in Huntington Beach. Counc il/PFA Regular Meeting February 15, 2022 Page 8of15 Mr. Leipzig stated his support for Councilmember Items No. 18 regarding updating the Balsa Chica Annexation Feasibility Study. He also noted that both Amigos De Balsa Chica and Sea and Sage Audubon Society support updating the Feasibility Study, but do not take a position at this time regarding Annexation . Mr. Leipzig closed by stating comments in a recent email claiming that if annexed , Huntington Beach could become responsible for dredging , insurance and upkeep responsibilities as totally false and inaccurate information. (02:07 :52) Dave Sullivan, a 57-year resident of Huntington Beach , former Councilmember and Mayor, was called to speak and shared his dismay with Mayor Delgleize's editorial in support of Poseidon's Desalination Plant , a project which neighboring residents in south Huntington Beach oppose . Mr . Sullivan further stated his opinion that the cu r rent C ity Council is the worst ever to serve Huntington Beach , and his hope that they do nothing to impede the best F ire and Police Departments in all of Orange County. (02:10:13) Caller Jeanne Farrens, a resident of Skandia Mobile Home Park, was invited to speak and shared her personal ex perience related to what she believes is abus ive rent gouging by IPG , and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (02 : 12:39) Caller Ruben , a resident of Skandia Mobile Home Park and veteran , was invited to speak and shared his personal experience related to what he believes is abusive rent increases by IPG, and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (02:14:53) Caller Paul was invited to speak and shared what he described as ridiculous requirements of the Rental Assistance program offered by Manufactured Housing Education Trust (MHET), and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (02 : 16 :41) Caller Michael Barhill , a resident of Skandia Mobile Home Park and veteran, was invited to speak and asked C ity Council to help residents living on fi xed incomes. (02: 18:29) Caller Allison Plum , a resident in Del Mar Estates Mobile Home Park, was invited to speak and shared her opinion that the corporate-owned mobile home parks in the City are more run down than the family - owned parks, and stated her support for Councilmember Items No . 19 regarding hosting a Sen ior Resource Fair. Ms. Plum asked that Council vet the vendors and confirm they truly offer benefits for residents on fi xed incomes. (02 : 19:20) Caller Dave Reynoso, a resident of Skandia Mobile Home Park, was invited to speak and shared his opinions related to IPG's ridiculous planned rent increases, and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (02 :22 :27) Caller Wayne Thornton, a reside nt of Skand ia Mobile Home Park, was invited to spea k and shared his opinions related to IPG's predatory rent increases, and asked that City Council support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot. (02 :24: 10) COUNCIL COMMITTEE-APPOINTMENTS -LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Council/PFA Regular Meeting February 15, 2022 Page 9of15 Mayor Pro Tern Posey announced the 75th Anniversary of Orange County Mosquito and Vector Control (OCMVC), and reported that the OCMVC Budget and Finance Committee approved initial funding for the planned Sterile Insect Treatment (SIT) program, a multi-year project in conjunction with Los Angeles County Mosquito and Vector Control. Mayor Pro Tern Posey also reported that the Orange County Power Authority (OCPA) voted to join California Consumer Choice Association (CalCCA), and OCPA's website (ocpower.org) has all the answers related to user option questions . Mayor Pro Tern Posey also welcomed Supervisor Andrew Do, who joined the Local Area Formation Commission (LAFCO), now representing Huntington Beach with the redrawn First District. Councilmember Kalmick reported a brief conversation with Huntington Beach Police Officers' Association (HBPOA). Council member Bolton reported attending a meeting of the Southern California Association of Government (SCAG) Regional Council, on behalf of Mayor Pro Tern Posey , where staff was authorized to apply for a grant with the State's Regional Early Action Planning (REAP) program for funding a sustainable community strategy . Council member Moser reported attending a meeting of the Human Relations Committee; reminded everyone of the Black History Month Showcase (cinemashowcase.com); first meeting of the Environmental and Sustainability Board; Downtown Business Improvement District (DTBID) meeting; Youth Board meeting, and planning for the April 26th Youth in Government Day. Mayor Delgleize announced that City Hall will re-open to in-person business hours on Wednesday, February 16, and further discussions were held last week with Skateboard Hall of Fame and organizers pursuing LA2028 Olympic events in Huntington Beach. Mayor Delgleize also announced that the Orange County Transportation Authority (OCTA) Teamsters appear to have successfully negotiated their agreement and averted a bus drivers' strike. CITY MANAGER'S REPORT-Interim City Manager Sean Joyce updated the Council and community on SurfCityBreak.com, the online source for information on what is happening in Huntington Beach. CITY CLERK'S REPORT 9. 22-082 Presentation on the Safe and Sane Fireworks Stand Application and Lottery Process for 2022 City Clerk Estanislau presented a PowerPoint communication titled Safe and Sane Fireworks Stand Application and Lottery Process 2022, with slides entitled: 2022 Fireworks Stand Application/Lottery Process (6), and Questions . 10. 22-126 City Archivist Kathie Schey announced receipt of a third digitization grant award from California Revealed, an initiative of the California State Library City Archivist Kathie Schey presented a PowerPoint communication titled California State Library Initiative Digitization, Preservation and On-Line Access with slides entitled: No Cost to City, Thousands of$ in Value; and Outreach -Thousands of Viewers Worldwide!!! Mayor Delgleize expressed her appreciation for the wealth of Huntington Beach historical information Ms. Schey finds and preserves. Council/PFA Regular Meeting February 15, 2022 Page 10of15 City Clerk Estanislau stated what a pleasure it is to work with Ms. Schey, and thanked her for her initiative in applying for, and receiving , grant funds to ensure the City's history is preserved . Ms . Schey reminded everyone that on February 17 , the City of Huntington Beach will be 113 years old . CONSENT CALENDAR 11. 22-086 Approved and Adopted Minutes A motion was made by Carr, second Posey to approve and adopt the City Council/Publi c Financing Authority regular meeting minutes dated February 1, 2022, as written and on file in the office of the City Clerk. The motion carried by the following vote : AYES : NOES : 12. 21-1018 Peterson , Bolton, Posey, Delgleize , Carr, Moser, and Kalmick None Reaffirmed adoption of Resolution No. 2021-62 finding a proclaimed state of emergency continues to impact the ability to meet safely in person, and allows meetings of the City Council and all City boards, commissions and committees to be conducted remotely as needed in compliance with new Brown Act provisions identified in Assembly Bill 361 A motion was made by Carr, second Posey to reaffirm Resolution No. 2021-62, "A Resolution of the City Council of the City of Huntington Beach, California, finding that the proclaimed state of emergency continues to impact the ability to meet safely in person ." The motion carried by the following vote: AYES : NOES: 13. 22-047 Peterson, Bolton , Posey, Delgleize, Carr, Moser, and Kalmick None Awarded and authorized the execution of a construction contract with Orion Construction Corporation, in the amount of $3,486,243 for the McFadden Sewer Lift Station Replacement Project, CC-161 O; approved appropriation of funds and declared Arnaz Engineering Contractors, Inc. as non-responsive A motion was made by Carr, second Posey to appropriate $1,403 ,302 from the Sewer Service Fund (511) to Account 51189016.82600 ; and , declare the first apparent lowest bid from Arnaz Engineering Contractors, Inc . as non-responsive ; and , accept the second lowest responsive and responsible bid subm itted by Orion Construction Corporation, in the amount of $3,486,243; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following vote : AYES: NOES: Peterson , Bolton , Posey, Delgleize , Carr, Moser, and Kalm ick None Council/PFA Regular Meeting February 15, 2022 Pag e 11of15 14. 22 -051 Accepted the lowest responsive and responsible bid, approved appropriation of funds and authorized execution of a construction contract with RJ Noble Company in the amount of $2,658,630 for the Zone 5 Overlay Project, CC -1638 A motion was made by Carr, second Posey to accept the lowest responsive and responsible bid submitted by RJ Noble Company in the amount of $2,658 ,630 ; and , appropriate $1 , 154,500 from the undesignated Measure M fund balance to account 21390002.82300; and , authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following vote: AYES : NOES : 15. 22-078 Peterson, Bolton , Posey , Delgleize, Carr, Moser, and Kalm ick None Rejected all bids for the Storm Water Pump Station Facility Improvements Project CC-1657; updated specifications and rebid the project A motion was made by Carr, second Posey to reject all bids for the Storm Water Pump Stati on Facility Improvements Project CC-1657 , update project specifications and the rebid the project. The motion carried by the following vote: AYES : NOES : Peterson , Bolton, Posey , Delgleize , Carr, Moser, and Kalmick None PUBLIC HEARING 16. 22-087 Conducted a Public Hearing, and Approved for introduction Ordinance No. 4234 approving Zoning Text Amendment (ZTA) No. 21-006 establishing electric vehicle charging station sign standards Jennifer Villasenor, Deputy Director of Community Development, introduced Principal Planner Ricky Ramos who presented a PowerPoint communication titled Zoning Te x t Amendment 21-006 with slides entitled: Background, Request, Analysis, Analysis and Recommendation. Councilmember Carr and Principal Planner Ramos discussed there are no restrictions or guidelines for Electric Vehicle Charging Station Sign messages, which are expected to be advertisements for products and services. Councilmember Kalm ick confirmed with Principal Planner Ramos that the Planning Comm ission did not make any changes to the staff recommendations. Deputy Director Villasenor stated that the orig inal rev iew by the Planning Commission was for an exemption for this t ype of off-site signage , that the Commission v iewed these signs as different from the typical gas station pump screen , and these recommendations are the result of that rev iew. Service prov iders shared their input as no other city has officially addressed the issue. Council/PFA Regular Meeting February 15, 2022 Page 12of15 Mayor Pro Tern Posey and Principal Planner Ramos discussed the distinctions between gas station pumps and charging stations related to advertising signage, including length of time spent at the stations and amount of physical space utilized. Mayor Delgleize opened the Public Hearing . City Clerk Robin Estanislau announced there were no public speakers. Mayor Delgleize closed the public hearing . Councilmember Kalmick thanked the Planning Commission for their thoughtful response and staff for a very good ordinance to regulate charging station signs. A motion was made by Posey, second Kalmick to find that Zoning Text Amendment No. 21 -006 is categorically exempt pursuant to City Council Resolution No. 4501, Class 20 , which supplements the California Environmental Quality Act (CEQA); and, approve Zoning Text Amendment No . 21-006 with findings (Attachment No. 1) by after the City Clerk reads by title, approve for introduction City Council Ordinance No. 4234, "An Ordinance of the City of Huntington Beach Amending Chapter 233 of the Huntington Beach Zoning and Subdivision Ordinance Establishing Electric Vehicle Charging Station Sign Standards (Zoning Text Amendment No. 21-006)" (Attachment No. 2). The motion carried by the following vote: AYES: NOES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick None ADMINISTRATIVE ITEMS 17. 22-107 Approved Actions for Year-End Audit Results for the FY 2020/21 Annual Comprehensive Financial Report (ACFR) and FY 2021/22 Mid-Year Budget Adjustments Chief Financial Officer Dahle Bulosan presented a PowerPoint communication titled FY 2 020121 Year- End Audit Results & FY 2021122 Mid-Year Budget Update with slides entitled : Overview, FY 2020121 Audit Results, FY 2020121 Performance (Audited), FY 2020121 General Fund (Audited), General Fund Balance, FY 2021122 Mid-Year Budget Update, City Budget & Fiscal Position, General Fund Budget FY 2021122 (2), Financial Outlook, Ongoing Challenges, FY 2021122 Mid-Year Budget Adjustments, Mid- Year Budget Adjustment Requests, General Fund Adjustments (4), General Fund Adjustment Summary, Current Year General Fund Surplus with Mid-Year Adjustments, Other Fund Adjustments (3), Other Funds Adjustment Summary, Professional Service Contract Amendments, FY 2021122 Budget Development Calendar (2), Recommended Actions, and Questions? Mayor Delgleize and CFO Bulosan discussed potential Section 115 investment plans for other employee benefit obligations. Councilmember Carr and CFO Bulosan discussed tracking all costs related to the recent oil spill of approximately $500 ,000 -$600,000 with the expectation those costs will be reimbursed . CFO Bulosan explained that if any of those expenses are not reimbursed , staff would return to Council with a request for additional appropriations. Council/PFA Regular Meeting February 15, 2022 Page 13of15 Councilmember Carr and CFO Bulosan d iscussed the General Liability amount of $11 .BM is a bit larger than usual due to recent large litigation cases. Councilmember Carr noted the $10 .9M surplus and thanked Finance Office staff and the Executive Team for plans to invest in capital infrastructure and equipment needs. She also expressed her appreciation for Council's bold decisions to make the City fiscally whole . Mayor Pro Tern Posey confirmed with CFO Bulosan details related to the General Liability set-asides , and explained for the benefit of the public , information regarding the legal claims expense of $1.4M . Mayor Pro Tern Posey stated that details of the $3 .SM set-aside for the Kennedy Commission is provided on page 122 of the Financial Statement Report, paragraph D under Chapter 18 . Mayor Pro Tern Posey confirmed that the mortgage obligation for former City Manager Chi will terminate in May of 2023, and the termination be shown on the next report. A motion was made by Kalmick, second Carr to receive and file the FY 2 020/21 Annual Comprehensive Financial Report and other auditor issued reports ; and, approve mid-year budget adjustments to the FY 2021/22 Revised Budget in the funds and by the amounts contained in Attachment 3 ; and, authorize additional Professional Services authority in the Fiscal Year 2021/22 Revised Budget in the departments and by the amounts contained in Attachment 4 ; and, approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Agreement between the City of Huntington Beach and National Council for Community Development (NOC) for Technical Assistance Services" (Attachment 5); and , approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile C r isis Response Program" (Attachment 6). The motion carried by the following vote: AYES : NOES : Peterson , Bolton , Posey, Delgleize , Carr, Moser, and Kalmick None COUNCILMEMBER ITEMS 18. 22-132 Approved Item Submitted by Councilmember Kalmick-Updating Bolsa Chica Annexation Feasibility Study Councilmember Kalmick explained this item came out of strategic planning , and he asked for Council to direct staff to update the Bolsa Chica Anne xation Feasibility Study. Mayor Pro Tern Posey stated his support for revisiting the feasibility to determine whether there is new information or economic benefits so that a decision can be made either for or against annex ation . Mayor Delgleize and Councilmember Kalmick discussed the study would analyze all County islands in Huntington Beach. Councilmember Kalm ick noted that annexation would not change ownership . A motion was made by Kalmick , second Posey to direct staff to undertake an update of the Bolsa Chica Annexation Feasibility Study and return to Council with a Study Session upon completion of that update, at which time the Council can discuss the merit of annexation . The motion carried by the following vote : AYES: NOES: Bolton, Posey , Delgleize, Carr, Moser, and Kalmick Peterson Council/PFA Regular Meeting February 15, 2022 Page 14of15 19. 22-137 Approved Item Submitted by Mayor Delgleize, Councilmembers Carr and Kalmick - Hosting a Senior Resource Fair in Huntington Beach Councilmember Carr explained that this proposed Senior Resource Fair would showcase the various services available to residents living in mobile home parks, as well as low-income seniors . She added that during this time of COVI D-19 there are some rental assistance funds, as well as resources specifically for veterans that people may not be aware of. Councilmember Carr stated that the plan involves hosting a Fair on a weekend in March , and further stated that Senator Tom Umber and The Council on Aging are supportive of the plan , with the expectation of providing resources for immediate assistance while seeking long -term solutions . Mayor Delgleize stated her support for this item and shared her hopes that many people will become aware of resources they may not currently know about. Councilmember Peterson confirmed with Councilmember Carr the effort would include posting information on the City's website and creating a booklet or pamphlet detailing the resources for access to the information after the one-day event. Councilmember Posey stated his support for a Senior Resource Fair, noting how important it is for people to evaluate if they are overpaying for services, and to look for opportunities to reduce costs . Councilmember Kalmick stated his support for this item , and his hope there will be representatives with County , State and Federal resources . Councilmember Moser thanked her fellow Councilmembers for presenting this opportunity, and her support for Councilmember Peterson's recommendation to ensure information remains available past the one-day Senior Resource Fair. Councilmember Moser suggested also util izing HB Channel 3 to inform residents of the resources. A motion was made by Carr, second Posey to direct staff to work with the Senior Center and community partners to plan and implement a one-day senior resource fair, focused on mobile home park residents and low-income seniors in the community . The motion carried by the following vote : AYES: NOES : Peterson , Bolton , Posey , Delgleize , Carr, Moser, and Kalmick None COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Moser repohed attending the Rogers Seniors' Center Memorial and Groundbreaking for the new park ; announced that her daughter is performing in the Marina High School Spring Musical Matilda; expressed her condolences and love to the family and friends of Jami Marseilles , an incredible and inspiring person who was instrumental in contributing funds for a Mobi mat in Huntington Beach ; and Council/PFA Regular Meeting February 15, 2022 Pag e 15of15 voiced her condemnation of the hate flyers which were distributed in Huntington Beach and appreciation for the partnership between the Huntington Beach Police Department, Orange County Human Relations Council , and Huntington Beach Human Relations Committee response. Mayor Pro Tern Posey reported speaking at the Robert Mayer Leadership Academy about City Council and how it functions ; and complimented Councilmembers who voted for the pension obligation bonds and pledging the cash flow difference to the Trust 115 account. Councilmember Carr reported attending the plaque dedication for Rockin ' Fig at Tower Zero and appreciation to the Huntington Beach Interfaith Council for making it possible; announced that September 17th will be Rockin' Fig Day in coordination with Surf City Days ; thanked Mayor Delgleize for the statement condemning the hate crime earlier in the day, and read a statement by Eric Ward , Executive Director, Western States Center, regard ing hate incidents. Councilmember Kalmick stated his support for the comments made by fellow Councilmembers regarding the distribution of hate flyers within Huntington Beach; and clarified Mayor Pro Tern Posey's comments regarding the pension obligation bonds to ensure not only him , but also Coun c ilmember Carr recei.ves recognition for her contributions . Mayor Delgleize reported that over 75% of the 405 Freeway project has been completed , and presenting awards to ten winners at the Saturday , February 121h Chili Cook-off. ADJOURNMENT -at 8 :51 PM in memory of Robe rt Ming , founding board member of the Association of California Cities -Orange County (ACC-OC) to th e next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Aut hority on Tuesday, March 1, 2022, at 4 :00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California . INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov ATTEST: City Clerk-Secretary City Cl~-o~~ty Council of the City of Huntington Beach· and Secretary of the Public Financing Authority of the City of Huntington Beac h , California Mayor-Chair