HomeMy WebLinkAbout2022-05-03 Agenda Packet - Hybrid-RevisedIN-PERSON PUBLIC PARTICIPATION/ZOOM ACCESS: Members wishing to attend the meeting
in person are encouraged to wear a face covering.
Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference (i.e., virtual
using Zoom), or in person if in part, State and Local officials continue to recommend measures to
promote social distancing. In addition to this hybrid format, 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: Individuals wishing to provide a comment on agendized or non-agendized
items, including Study Session, Closed Session, and Public Hearing, 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 . Instructions for
those utilizing computer devices to request to speak are provided in each section of the agenda where
public comments are accepted.
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 the day of the meeting,
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. Communications received following the 2:00 PM
deadline will be incorporated into the administrative record.
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.
AGENDA
City Council/Public Financing Authority
Tuesday, May 3, 2022
Special Meeting of the Housing Authority
Council Chambers
2000 Main Street
Huntington Beach, CA 92648
--or--
Virtual via Zoom Webinar
MAYOR AND CITY COUNCIL
BARBARA DELGLEIZE, Mayor
MIKE POSEY, Mayor Pro Tem
RHONDA BOLTON, Councilmember
KIM CARR, Councilmember
DAN KALMICK, Councilmember
NATALIE MOSER, Councilmember
ERIK PETERSON, Councilmember
STAFF
SEAN JOYCE, Interim City Manager
MICHAEL E. GATES, City Attorney
ROBIN ESTANISLAU, City Clerk
ALISA BACKSTROM, City Treasurer
1
AGENDA May 3, 2022City Council/Public Financing
Authority
5:30 PM - COUNCIL CHAMBERS
CALL TO ORDER
ROLL CALL
Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION
ITEMS (Received After Agenda Distribution)
PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) - At
approximately 5:30 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 delivered to the City
Clerk, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by
calling (669) 900-6833. Once the Mayor opens Public Comments, in-person participants will be
called to speak first. Zoom Webinar participants wishing to speak will be provided a 15-minute
window to 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. Individuals will be
prompted to speak when the Clerk announces their name or the last three digits of their phone
number. After a virtual speaker concludes their comment, their microphone will be muted. All
speakers are encouraged, but not required to identify themselves by name. Each speaker may
have up to 3 minutes unless the volume of speakers warrants reducing the time allowance.
RECESS TO CLOSED SESSION
CLOSED SESSION ANNOUNCEMENT(S)
22-3881.Mayor Delgleize to Announce: Pursuant to Government Code §
54957.6., the City Council takes this opportunity to publicly introduce
and identify labor negotiators: Sean Joyce, Interim City Manager;
also in attendance: Brittany Mello, Director of Administrative
Services, regarding the following: Surf City Lifeguard Employees'
Association (SCLEA).
CLOSED SESSION
22-3852.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION.
(Paragraph (1) of subdivision (d) of Section 54956.9). Name of case:
California Renters Legal Advocacy and Education Fund/THDT
Investment, Inc. v. City of Huntington Beach; OCSC Case No.:
30-2020-01140855.
Page 1 of 9
2
AGENDA May 3, 2022City Council/Public Financing
Authority
22-3863.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION.
(Paragraph (1) of subdivision (d) of Section 54956.9). Name of case:
Californians for Homeownership, Inc. v. City of Huntington Beach;
OCSC Case No. 30-2019-01107760.
22-3844.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section
54957.6.) Agency designated representatives: Sean Joyce, Interim
City Manager; also in attendance: Brittany Mello, Director of
Administrative Services, regarding the following: Surf City Lifeguard
Employees' Association (SCLEA).
6:00 PM – COUNCIL CHAMBERS
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALL TO ORDER A
SPECIAL MEETING OF THE HOUSING AUTHORITY
ROLL CALL
Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick
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.
22-3125.Lachelle Corozza of Branches Church, Huntington Beach and
member of the Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY
AWARDS AND PRESENTATIONS
22-3726.Mayor Delgleize to call on Victoria Alberty to present the Adoptable
Pet of the Month
22-3257.Mayor Delgleize to call on local resident and student athlete, Oscar
Aranda III, a senior at St. John Bosco High School, to acknowledge
him for his scholastic achievements and acceptance to West Point
Academy in New York where he will wrestle Division 1
Page 2 of 9
3
AGENDA May 3, 2022City Council/Public Financing
Authority
22-3838.Mayor Delgleize to proclaim May as Older Americans Month and
present proclamation to Randy Pesqueira, Senior Supervisor at the
Senior Center in Central Park and Ellen HopeKearns, President of
the Huntington Beach Council on Aging
22-3899.Mayor Delgleize to proclaim May as National Bike Safety Month and
present proclamation to Public Works Director Sean Crumby
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 delivered to the City Clerk, via computer through Zoom Webinar ID 971
5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public
Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing
to speak will be provided a 15-minute window to 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. Individuals will be prompted to speak when the Clerk announces their name or the
last three digits of their phone number. 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. All speakers are encouraged, but not required to identify themselves by name. Each
speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time
allowance.
While the City Council welcomes public involvement and free speech, it rejects comments from
anyone that are discriminatory, defamatory or otherwise not protected speech. Those comments
will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt
the public speaker. Such public comments will not be consented to or otherwise adopted by the
City Council in its discussions and findings for any matter tonight.
COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
CITY MANAGER'S REPORT
CITY TREASURER'S REPORT
22-16010.Receive and File the City Treasurer's March 2022 Quarterly
Investment Summary Report
Receive and file the City Treasurer’s Quarterly Investment Report for March 2022, pursuant
to Section 17.0 of the Investment Policy of the City of Huntington Beach .
Recommended Action:
Page 3 of 9
4
AGENDA May 3, 2022City Council/Public Financing
Authority
CONSENT CALENDAR
22-37411.Approve and Adopt Minutes
Approve and adopt the City Council/Public Financing Authority regular meeting minutes
dated April 19, 2022 .
Recommended Action:
22-37812.Approve appointments and reappointments to the Fourth of July
Executive Board with terms set to expire in 2023 and 2025
A) As recommended by City Council Member Liaisons Erik Peterson and Natalie Moser,
approve the reappointment of Andi Kowal, Pat Love, Karen Pederson, Linda Vircks, and
Chris Young and the appointment of Lisa Marie Moreo and Don Ramsey to the Fourth of
July Executive Board with terms to expire September 30, 2023; and,
B) As recommended by City Council Member Liaisons Erik Peterson and Natalie Moser,
approve the appointment of Paul Simonds, Shannon Smith, Allison Stevens, Floreal
Taboada, and Ryan Van Tuyl to the Fourth of July Executive Board with terms to expire
September 30, 2025 .
Recommended Action:
22-35313.Adopt Resolution 2022-21 adopting a list of projects for Fiscal Year
2022/23 fund by SB 1: The Road Repair and Accountability Act of
2017
Adopt Resolution 2022-21 , “A Resolution of the City Council of the City of Huntington
Beach Adopting a List of Projects for Fiscal Year 2022/23 Funded by SB 1: The Road
Repair and Accountability Act of 2017.”
Recommended Action:
22-32314.Approve and accept Public Improvements for the Slater Storm Water
Pump Station and release the Securities posted with Tract 15377
A) Accept the improvements constructed to the Slater Storm Water Pump Station with
Tract 15377 (Attachment 1) and instruct the City Clerk to record the “Notice of Acceptance
of Public Improvements” (Attachment 2) with the Orange County Recorder; and,
B) Release the Faithful Performance Bond No. 0195161, Labor and Materials Bond No.
0195161, pursuant to the California Government Code Section No. 66499.7(a); and,
C) Accept Guarantee and Warranty Bond No. 0195161M (Attachment 3): the security
furnished for guarantee and warranty of public improvements, and instruct the City Clerk to
file the bond with the City Treasurer; and,
Recommended Action:
Page 4 of 9
5
AGENDA May 3, 2022City Council/Public Financing
Authority
D) Instruct the City Clerk to notify Shea Homes Limited Partnership, the subdivider of
Tract No. 15377, and the City Treasurer to notify Berkley Insurance Company of these
actions.
22-35915.Approve sole source purchases of an L3 Wescam IR camera,
Aerocomputers moving map system, and Technisonic aviation radio
for the Huntington Beach Police Department (HBPD) Aero Unit
A) Approve Sole Source purchase of L3 Wescam IR camera, Aerocomputers moving
map system, and Technisonic aviation radio; and,
B) Appropriate $1.4 million in the Equipment Replacement Fund (Fund 324) to replace
the damaged helicopter and equipment.
Recommended Action:
22-33216.Accept bid and authorize the Mayor and City Clerk’s execution of a
construction contract with Ferreira Construction Co., Inc., dba
Ferreira Coastal Construction Co., in the amount of $109,021 for the
construction of Fiber Optic Communications from City Hall to the
Utility Yard, CC-1646, and authorize change orders not to exceed 15
percent.
A) Accept the lowest responsive and responsible bid submitted by Ferreira Construction
Co. Inc., dba Ferreira Costal Construction Co., in the amount of $109,021; and,
B) Authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney; and,
C) Authorize the Director of Public Works to execute change orders not to exceed a total
of 15 percent of the contract construction costs, or $16,353.
Recommended Action:
22-35217.Accept bid and authorize execution of a construction contract with
Asplundh Construction, LLC, in the amount of $696,776 for the
construction of the Street Lighting Modification Project on Orange
Avenue (CC-1612) and Crest Avenue (CC-1644), and authorize
change orders not to exceed 15 percent
A) Accept the lowest responsive and responsible bid submitted by Asplundh
Construction, LLC, in the amount of $696,776; and ,
B) Authorize the Mayor and City Clerk to execute a construction contract in a form
Recommended Action:
Page 5 of 9
6
AGENDA May 3, 2022City Council/Public Financing
Authority
approved by the City Attorney; and ,
C) Authorize the Director of Public Works to execute change orders not to exceed a total
of 15 percent of the contract construction costs, or $104,516.
22-36518.Accept the lowest responsive and responsible bid, approve
appropriations and authorize execution of a construction contract
with Orion Construction Corporation in the amount of $747,000 and
appropriate funds for the McCallen Storm Drain Trash Removal
Project CC-1588.
A) Accept the lowest responsive and responsible bid submitted by Orion Construction
Corporation in the amount of $747,000; and
B) Appropriate $161,100 in additional funding from the Drainage Fund to account
21185201.82500; and
C) Authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney.
Recommended Action:
22-36319.Authorize additional contingency and appropriate funds for the Zone
5 Residential Overlay Project, CC-1638
A) Authorize a 20% contingency for the Zone 5 Residential Overlay Project, CC-1638;
and,
B) Appropriate $266,000 from the undesignated Measure M fund balance to account
21390002.82300.
Recommended Action:
22-36020.Approve and authorize a First Amendment to the License
Agreement with Bella Terra Associates, LLC for a Police Substation
at 7777 Edinger Avenue, Suite D-135
Approve and authorize the Mayor and City Clerk to execute the “Amendment to License
Agreement - Bella Terra” for use of real property located at 7777 Edinger Avenue, Suite
D-135 by the Police Department for the Bella Terra Substation.
Recommended Action:
22-36421.Approve and authorize execution of a three-year Professional
Service Contract with Davis Farr LLP in the amount of $156,076 to
perform financial audit services
Recommended Action:
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7
AGENDA May 3, 2022City Council/Public Financing
Authority
Approve and authorize the Mayor and City Clerk to execute the “Professional Services
Contract Between the City of Huntington Beach and Davis Farr LLP for Financial Audit
Services.”
22-36922.Approve and authorize execution of a Density Bonus and Affordable
Housing Agreement with S.G.V. Property Fund LLC for the 18-unit
townhome project located at 17532 Cameron Lane
A) Approve the “Density Bonus and Affordable Housing Agreement for 17532 Cameron
Lane, Huntington Beach, by and between the City of Huntington Beach, a California
Municipal Corporation and S.G.V. Property Fund LLC, a Limited Liability Corporation,” for
the development an 18-unit townhome project; and,
B) Authorize the City Manager or their designee to implement and execute the Density
Bonus and Affordable Housing Agreement for the Project, including all necessary related
documents; and
C) Authorize the Executive Director or their designee to execute all necessary
implementing agreements and related documents.
Recommended Action:
22-37623.Approve and authorize the execution of the Joint Agreement for the
Operation, Maintenance and Financial Management of the Orange
County 800-Megahertz Countywide Coordinated Communications
System
Approve and authorize the Mayor and City Clerk to execute the “Joint Agreement for the
Operation, Maintenance and Financial Management of the Orange County 800 -Megahertz
Countywide Coordinated Communications System.”
Recommended Action:
PUBLIC HEARING
22-37324.Public Hearing to consider acceptance of the Five-Year Economic
Development Subsidy Report for Surf City Auto Group II, Inc. Sales
Tax Sharing Agreement
A) Open the public hearing and receive written and oral testimony; and,
B) Receive and file the “Five-Year Economic Development Subsidy Report Pursuant to
California Government Code Section 53083 for a Sales Tax Sharing Agreement by and
Between the City of Huntington Beach and Surf City Auto Group II, Inc.,” in compliance with
Government Code Section 53083 .
Recommended Action:
Page 7 of 9
8
AGENDA May 3, 2022City Council/Public Financing
Authority
ADMINISTRATIVE PUBLIC HEARING
22-36825.Conduct Public Hearing for the 2022 Annual Weed Abatement
Program and authorize the Director of Public Works to proceed with
abatement
A) Open a public hearing for any objections to the proposed removal of weeds and
rubbish; and,
B) Authorize the Director of Public Works to proceed with the abatement of the nuisance.
Recommended Action:
ADMINISTRATIVE ITEMS
22-38026.Adopt Resolution No. 2022-25 to appoint Alfred Zelinka as City
Manager and approve the Employment Agreement; adopt
Resolution No. 2022-24 amending the Non-Associated Appointed
Executive Management pay schedule to update the compensation
range for the City Manager
A) Review and consider the proposed City Manager employment agreement, and if
appropriate, adopt Resolution No. 2022-25, “A Resolution of the City Council of the City of
Huntington Beach Appointing Alfred Zelinka as City Manager;” and
B) Adopt Resolution No. 2022-24, “A Resolution of the City Council of the City of
Huntington Beach Modifying the Non-Elected Non-Represented Employees Pay Schedule
to Amend the Compensation for the City Manager .”
Recommended Action:
ORDINANCES FOR INTRODUCTION
22-33727.Adoption of Uncodified Police Equipment Use Policy Emergency
Ordinance No. 4254 and Uncodified Police Equipment Use Policy
Ordinance No. 4255 consistent with Assembly Bill No. 481 and
making a Finding of Exemption under CEQA
5 Affirmative Votes are required to adopt Emergency Ordinance No.
4254 per City Charter Section 501
A) Adopt Uncodified Police Equipment Use Policy Emergency Ordinance 4254, “An
Emergency Ordinance of the City Council of the City of Huntington Beach Adopting a
Military Equipment Use Policy Consistent With Assembly Bill No. 481, and Making a
Finding of Exemption Under CEQA”; and,
Recommended Action:
Page 8 of 9
9
AGENDA May 3, 2022City Council/Public Financing
Authority
B) Approve for Introduction Uncodified Police Equipment Use Policy Ordinance 4255, “An
Ordinance of the City Council of the City of Huntington Beach Adopting a Military
Equipment Use Policy Consistent With Assembly Bill No. 481, and Making a Finding of
Exemption Under CEQA.”
COUNCILMEMBER COMMENTS (Not Agendized)
ADJOURNMENT
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday, May 17, 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
Page 9 of 9
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-388 MEETING DATE:5/3/2022
Mayor Delgleize to Announce: Pursuant to Government Code § 54957.6., the City Council
takes this opportunity to publicly introduce and identify labor negotiators: Sean Joyce,
Interim City Manager; also in attendance: Brittany Mello, Director of Administrative Services,
regarding the following: Surf City Lifeguard Employees' Association (SCLEA).
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-385 MEETING DATE:5/3/2022
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision
(d) of Section 54956.9). Name of case: California Renters Legal Advocacy and Education
Fund/THDT Investment, Inc. v. City of Huntington Beach; OCSC Case No.: 30-2020-01140855.
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-386 MEETING DATE:5/3/2022
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision
(d) of Section 54956.9). Name of case: Californians for Homeownership, Inc. v. City of
Huntington Beach; OCSC Case No. 30-2019-01107760.
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-384 MEETING DATE:5/3/2022
CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated
representatives: Sean Joyce, Interim City Manager; also in attendance: Brittany Mello,
Director of Administrative Services, regarding the following: Surf City Lifeguard Employees'
Association (SCLEA).
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-312 MEETING DATE:5/3/2022
Lachelle Corozza of Branches Church, Huntington Beach and member of the Greater
Huntington Beach Interfaith Council
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-372 MEETING DATE:5/3/2022
Mayor Delgleize to call on Victoria Alberty to present the Adoptable Pet of the Month
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-325 MEETING DATE:5/3/2022
Mayor Delgleize to call on local resident and student athlete, Oscar Aranda III, a senior at St.
John Bosco High School, to acknowledge him for his scholastic achievements and
acceptance to West Point Academy in New York where he will wrestle Division 1
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-383 MEETING DATE:5/3/2022
Mayor Delgleize to proclaim May as Older Americans Month and present proclamation to Randy Pesqueira, Senior
Supervisor at the Senior Center in Central Park and Ellen HopeKearns, President of the Huntington Beach Council on
Aging
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-389 MEETING DATE:5/3/2022
Mayor Delgleize to proclaim May as National Bike Safety Month and present proclamation to Public Works Director Sean
Crumby
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-160 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Alisa Backstrom, City Treasurer
PREPARED BY:Alisa Backstrom, City Treasurer
Subject:
Receive and File the City Treasurer's March 2022 Quarterly Investment Summary Report
Statement of Issue:
Receive and File the City Treasurer’s Quarterly Investment Report for March 2022, pursuant to
Section 17.0 of the Investment Policy of the City of Huntington Beach.
Financial Impact:
Not Applicable
Recommended Action:
Receive and file the City Treasurer’s Quarterly Investment Report for March 2022, pursuant to
Section 17.0 of the Investment Policy of the City of Huntington Beach.
Alternative Action(s):
Deny or critique the Quarterly Investment Report for March 2022.
Analysis:
Not Applicable
Environmental Status:
Not Applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Treasurer’s Quarterly Investment Report for March 2022
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File #:22-160 MEETING DATE:5/3/2022
2. Treasurer’s PowerPoint Presentation for March 2022
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CITY OF HUNTINGTON BEACH
QUARTERLY INVESTMENT REPORT
CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM
QUARTER ENDED: MARCH 31, 2022
59
INVESTMENT PORTFOLIO –SUMMARY:
AS OF: March 31, 2022
Investment Type
$ in 000's
Market
Value Book Value
Federal Agency Issues 127,387$ 132,224$
Local Agency Investment Fund (LAIF) 5,684$ 5,684$
Treasury Securities 63,898$ 66,100$
Medium Term Notes - Supranationals 33,914$ 35,177$
Corporate Bonds 46,412$ 46,924$
Commercial Paper 2,994$ 2,993$
OC Investment Pool 10,575$ 10,575$
TOTAL 290,864$ 299,677$
60
INVESTMENT PORTFOLIO –INVESTMENTS BY TYPE:
44%3%16%22%12%2%1%
Federal Agencies OC Investment Pool Corporate Bonds Treasuries
MTN-Supras LAIF Commercial Paper 61
INVESTMENT PORTFOLIO –QUARTERLY ACTIVITY (JAN-MARCH):
Purchases:
(In 000's)
Federal Agency Issues 9,575$
Corporate Bonds 5,000$
Treasury Securities 29,000$
Commercial Paper 3,000$
TOTAL 46,575$
Maturities/Calls/Withdrawals:
(In 000's)
Corporate Bonds 5,000$
LAIF 3,000$
OC Investment Pool 40,000$
TOTAL 48,000$ 62
Current Year -Month Mar 2022:$324,815
vs. budget: $100,000
Current Fiscal Year-to-date Through 03/31: $2,483,158
vs. budget:$900,000
Effective Rate of Return Mar 2022: 1.26%
Fiscal Year-to-date: 1.17%
Benchmark Mar 2022: 0.50%
12-month moving average 1.5-year Treasury
INVESTMENT PORTFOLIO –EARNINGS:
63
INTEREST RATES –US TREASURY RATES
JANUARY 3, 2022 –MARCH 31, 2022
5-year US Treasury
2.42%
at 3/31
2-year US Treasury
2.28%
at 3/31 64
SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTS:
INVESTMENT TYPE MAXIMUM
MATURITY
MAXIMUM SPECIFIED
% OF PORTFOLIO/
MAXIMUM PER
ISSUER
MINIMUM QUALITY
REQUIREMENTS
IN
COMPLIANCE?
U.S. Treasury
Obligations 5 years None None YES
U.S. Government
Agency Obligations 5 years None None YES
Supranationals 5 years 10%"AA" Rating YES
Corporate Notes 5 years 30%/10%"A" Rating YES
Local Agency
Investment Fund
(LAIF)
N/A Up to $75,000,000 None
YES
Orange County
Investment Pool
(OCIP)
N/A Up to $75,000,000 None
YES
Maximum Maturities No more than 50% of portfolio maturing over 4 years.YES
(Requirements are at purchase)65
SUMMARY:
Safety –No principal losses
Liquidity –Sufficient funds for operations
Market rate of return –1.26% March, 1.17% Fiscal Year-to -date
(upward trend)
Prudently managed –No compliance issues
Positive contributor to City –Earnings of $2,483,158 fiscal year-
to -date to be utilized for operating and other expenses
66
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-374 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Robin Estanislau, CMC, City Clerk
PREPARED BY:Robin Estanislau, CMC, City Clerk
Subject:
Approve and Adopt Minutes
Statement of Issue:
The City Council/Public Financing Authority regular meeting minutes of April 19, 2022, require review
and approval.
Financial Impact: None.
Recommended Action:
Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated April
19, 2022.
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):
1. April 19, 2022 CC/PFA regular meeting minutes
City of Huntington Beach Printed on 4/27/2022Page 1 of 1
powered by Legistar™67
Minutes
City Council/Public Financing Authority
City of Huntington Beach
Tuesday, April 19, 2022
5:00 PM - Council Chambers
6:00 PM - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
OR Virtual via Zoom Webinar
A vid eo recording of 6:00 PM portion of this meeting
is on file in the Office of the City Clerk, and archived at
www.surfcity-hb.org/government/agendas/
5:00 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 5:00 PM
ROLL CALL
Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
Absent: None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION
ITEMS (Received After Agenda Distribution) — None
PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS — None
A motion was made by Posey, second by Moser, to recess to Closed Session for Items 1 – 7. With no
objections, the motion carried.
RECESSED TO CLOSED SESSION — 5:01 PM
CLOSED SESSION
1. 22-341 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: California Renters Legal
Advocacy and Education Fund/THDT Investment, Inc. v. City of Huntington Beach;
OCSC Case No.: 30-2020-01140855.
2. 22-342 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Californians for
Homeownership, Inc. v. City of Huntington Beach; OCSC Case No. 30-2019-
01107760.
3. 22-343 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Zago (Daphna) v. City of
Huntington Beach; Case No.: 30-2020-01174319.
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4. 22-348 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: James Schoales v. City of
Huntington Beach; Worker’s Compensation No. COHB-21-0110.
5. 22-349 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Dale Shields v. City of
Huntington Beach; Worker’s Compensation No. COHB-16-0273.
6. 22-350 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Brandon Reed v. City of
Huntington Beach; Worker’s Compensation No. COHB-17-0240.
7. 22-346 PUBLIC EMPLOYEE APPOINTMENT (Gov. Code section 54957(b)(1).) Title: City
Manager.
6:00 PM - COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:06 PM
ROLL CALL
Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Moser
INVOCATION
In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or
belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.
8. 22-180 Rev. George Hooper of Community United Methodist Church and member of the
Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY — None
AWARDS AND PRESENTATIONS
9. 22-339 Mayor Delgleize called on Miss Huntington Beach Princess Jenny Thach to assist
with conducting the 4th of July fireworks stand lottery drawing
City Clerk Robin Estanislau presented a PowerPoint communication titled 2022 Non-Profit Firework
Stand Lottery, with slides entitled Public High School Winners (4), Private High School Winner, Miss
Huntington Beach 2022, Civic Organizations, Youth Sports, and Good Luck!
Civic Organization Winners (5):
1. American Legion Huntington Beach Post 133
2. Patriots and Paws
3. McKenna Claire Foundation
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4. Friends of Huntington Beach Junior Lifeguards
5. Monarch Preschool
Civic Organization Alternates (3):
Apostolic Assembly of the Faith Huntington Beach, Orange County Gakuen, Inc. and Linden Tree
Learning
Youth Sports Winners (5):
1. Culture Football Organization
2. Team 90, Inc. dba California Rush
3. HB Divers, dba Coast Divers
4. Orange County Riptide Aquatics Club
5. Huntington Beach Pop Warner Youth Football
Youth Sports Alternates (3):
Surf City Premier Youth Sports and Fitness, Golden West Swim Club, and Huntington Valley Little
League
City Clerk Estanislau announced that Huntington Beach Fire Department representatives would be in
touch with the winners on Wednesday, April 20 with instructions on completing the required permit
paperwork.
10. 22-209 Mayor Delgleize called on members of the Huntington Beach Interfaith Council to
describe the need for volunteers for the annual ’Day of Service’ set for Saturday,
April 23
Marcia, Huntington Beach Interfaith Council member, described the multiple project sites where
volunteers are needed on Saturday, April 23. All of the details are available at www.ghbic.org. Mayor
Delgleize also announced the Greater Huntington Beach Interfaith Council Annual Prayer Breakfast on
Thursday, May 5, 8 AM, at Community Methodist Church.
11. 22-326 Mayor Delgleize presented the Mayor’s HB Excellence Award for the Month of April,
2022 to Fleet Operations Supervisor Cody Jahn in the City’s Public Works
Department
Mayor Delgleize introduced Cody and explained the awardee is selected by fellow employees to
acknowledge a co-worker who demonstrates humility, social awareness, passion, exceptionality,
integrity, and is always team oriented.
Denny Bacon, Public Works Operations Manager, described Cody as a leader who makes the hard
decisions look easy, and the easy decisions really, really easy, who through the years moved up to his
current position of Supervisor. He is responsible for 884 vehicles, including police cars, firetrucks,
tractors, and boats, plus all underground fuel storage tanks. Cody routinely interacts with nearly every
department and generally has the inside scoop on most situations.
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 Council Agenda packet:
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Awards and Presentations
#9 (22-339) PowerPoint communication entitled 2022 Non-Profit Firework Stand Lottery submitted by
Robin Estanislau, City Clerk.
City Attorney’s Report
#12 (22-292) PowerPoint communication entitled Community Prosecutor Program, City Attorney’s
Office submitted by Michael Gates, City Attorney.
Consent Calendar
#16 (22-302) Five (5) email communications regarding adoption of Resolution No. 2022-10 establishing
a Permit Parking District “AA” submitted by Darren Sam, Senior Traffic Engineer, Public
Works Department.
#22 (22-358) Email communication received from Leisa Winston, Superintendent of the Huntington
Beach City School District regarding the proposed MOU between the City of Huntington
Beach and the Huntington Beach City School District (HBCSD).
PUBLIC COMMENTS — 20 In-Person and 1 Call-In 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/government/agendas.
Carol Rohr, Skandia Mobile Home Park Homeowners Association President, was called to speak and
described the efforts of Skandia homeowners to lobby for a City Charter Section 803 amendment
through the Charter Review Committee as well as the Mobile Home Advisory Board. Ms. Rohr further
supported the appointment of Mr. Tim Geddes to the Mobile Home Advisory Board to ensure a full Board
for their next quarterly meeting, or suggested postponing the next meeting until there is a full Board.
(00:38:34)
Sheila Lugenbuehl, a resident of Skandia Mobile Home Park, was called to speak and stated she
expected City Council to be much more proactive in representing the City’s citizens. Ms. Lugenbuehl
also stated her support for the appointment of Mr. Tim Geddes to the Mobile Home Advisory Board
(MHAB). (00:40:36)
Michael Lugenbuehl, a resident of Skandia Mobile Home Park, was called to speak and asked that City
Council support a Rent Stabilization Ordinance (ROS) through an amendment to City Charter Section
803. (00:43:42)
Gina Alexander, Skandia Mobile Home Park Homeowners Association Vice President, was called to
speak and shared the efforts of Skandia Mobile Home Park residents seeking rent stabilization, and
stated her support for the appointment of Mr. Tim Geddes to the Mobile Home Advisory Board (MHAB).
(00:46:36)
Dan Pantano, a resident of Skandia Mobile Home Park, was called to speak and asked for City Council's
active support for the seniors wanting affordable homes in Huntington Beach. (00:49:46)
Mary Jo Baretich, Manufactured Homeowners League Vice President, was called to speak and noted the
City Council can ensure affordable housing for the seniors, veterans and low-income residents by
supporting a carve out to City Charter Section 803 for a Rent Stabilization Ordinance voted on by the
residents in November. (00:52:05)
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Pat Taylor, a resident of Rancho Huntington Mobile Home Park, was called to speak and shared her
opinions on the importance of affordable housing and rent stabilization, and asked that City Council
support a carve out to City Charter Section 803 and a Rent Stabilization Ordinance for the November
2022 ballot. (00:55:10)
Suzan Neil, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council
respect the citizens who add value to the community and requested City Council support to address the
issues presented. (00:57:13)
Jeanne Farrens, a resident of Skandia Mobile Home Park, was called to speak and shared her opinion
that the City Council has demonstrated no desire to assist the City's mobile home park residents, and
stated that come November she will choose to not support any current Council candidate. (01:00:13)
Maureen was called to speak and shared previously communicated concerns about traffic poles added
along Delaware Street, which in her opinion have created a much more dangerous situation for vehicles.
She also noted that after providing her contact information, she has yet to hear from any Councilmember
in response to her concerns. (01:03:19)
Kathryn Goddard, representing the Friends of Shipley Nature Center, was called to speak and thanked
Sean Crumby, Director of Public Works, Chau Vu, Deputy Director of Public Works, and Debra Jubinsky,
Public Works Sr. Administrative Analyst, for their support to maintain and improve the Nature Center.
Ms. Goddard noted that one of the Shipley Nature Center volunteers brought to everyone's attention the
availability of grant funds, and stated the Friends' support for Consent Calendar Item #17 regarding the
application for grant funds from the State Department of Parks and Recreation. (01:07:14)
Dave Shenkman, owner of the Kite Connection on the Pier, was called to speak and shared an update
on the recent 18th Annual Kite Party with a full house of 75 flyers, including about 35 first-timers, and
thanked the City for its support for another successful event. (01:10:01)
Eugene Conley was called to speak and shared photos of the neighborhood parking issues created by
people who are actually going to Huntington Central Park, and stated his opposition to Consent Calendar
Item #16 regarding establishing Permit Parking District "AA" affecting residents on Lakeview Drive and
Cliffview Lane because it will just push the Park visitors to the side streets in the neighborhood.
(01:11:38)
Pano Frousiakis, a Candidate for City Council in 2022, was called to speak and shared his opinion that
Consent Calendar Item No. 22 regarding a Memorandum of Understanding between the City of
Huntington Beach and the Huntington Beach City School District (Gisler Residential Project) is missing a
key player, American Youth Soccer Organization (AYSO), and the item should be postponed until all
parties are included in the discussion. Mr. Frousiakis also commended Council for Consent Calendar
Item No. 23 regarding prohibiting the unlawful possession of catalytic converters in the City. (01:13:23)
Alan Gandall, a 50-year resident of Huntington Beach and AYSO Area K Director in Central Orange
County, was called to speak and stated his concern that AYSO has apparently not been included in
Consent Calendar Item No. 22 regarding a Memorandum of Understanding between the City of
Huntington Beach and the Huntington Beach City School District (Gisler Residential Project). Mr.
Gandall requested that this item be postponed until AYSO is included in the conversation to ensure
funds are properly allocated. (01:16:34)
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Amory Hanson, a Candidate for City Council in 2022 and Huntington Beach Historic Resources Board
Member, was called to speak and expressed his sadness at the passing of Mr. Anthony Soriano, who
was a member of the Surfrider Foundation and the Huntington Beach Environmental Board, and
encouraged Mayor Delgleize to adjourn this meeting in memory of Mr. Soriano. (01:18:50)
Noelle Collins, Families Forward, was called to speak and thanked Council for their partnership to
address family homelessness, summarized some of the successful outcomes of their efforts since 2018,
and stated support for Public Hearing Item No. 24 regarding the Annual Action Plan for Federal
Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Entitlement
Grant Programs. (01:20:00)
Tim Geddes, a long-time resident of southeast Huntington Beach, was called to speak and reviewed his
civic service for the last 20 years. Mr. Geddes shared his opinions on Consent Calendar Item No. 14
regarding appointments to the Mobile Home Advisory Board (MHAB), and noted that unless Council
appoints a third At-Large Member tonight, a full MHAB will not be achieved for next week's quarterly
meeting and, in his opinion, that scheduled meeting should be postponed. (01:21:50)
Roger Noor was called to speak and shared concerns related to a wrongful towing incident experienced
by his son that resulted in his vehicle being held for over 69 hours. He provided an explanation of the
circumstances that led to the event, and requested that the City work to ensure proper hearing
procedures and followed, and pay all related expenses. (01:24:51)
Bryan Costa was called to speak and stated his support for his friend's wrongful towing claim. (01:28:28)
Caller Allison Plum, mobile home owner and Mobile Home Advisory Board (MHAB) Member, was invited
to speak and stated her opposition to Consent Calendar Item No. 14 (C) regarding the appointment of
Valeria Avila to the MHAB, and her support for Tim Geddes being appointed as the At-Large Member to
ensure a complete Board for the meeting on April 28, 2022. (01:31:25)
COUNCIL COMMITTEE – APPOINTMENTS – LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Carr reported attending meetings of the Youth Board planning for the Youth in
Government Day at City Hall on April 26, Downtown Business Improvement District Board, and a dinner
event to acknowledge the service of retired Orange County Business Council (OCBC) President Lucy
Dunn.
Mayor Pro Tem Posey reported meetings with the Intergovernmental Relations Committee (IRC); Local
Agency Formation Commission (LAFCO); and Orange County Vector Control Budget and Finance
Committee.
Councilmember Moser reported attending meetings of the Youth Board; 25th Anniversary Celebration for
the Human Relations Committee; and announced the Human Relations Committee and Huntington
Beach High School District Annual Day of Dialogue on April 20 to encourage human dignity.
Councilmember Kalmick reported attending meetings of the Intergovernmental Relations Committee
(IRC); Environmental and Sustainability Board; and Orange County Transportation Authority (OCTA)
Citizen's Advisory Committee.
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Mayor Delgleize commented that nearly 200 residents are now attending OCTA's 405 Freeway Project
update meetings through Zoom vs approximately 20 people who previously attended the in-person
meetings.
CITY MANAGER’S REPORT — Interim City Manager Sean Joyce informed Council that the Huntington
Beach City School District met earlier in the day and unanimously approved the MOU included in
Consent Item No. 22 on tonight’s agenda.
CITY ATTORNEY’S REPORT
12. 22-292 Community Prosecutor Program Update
City Attorney Michael Gates presented a PowerPoint communication titled Community Prosecutor
Program with slides entitled: History of the Community Prosecutor Program (5), Types of State Crimes
(Penal Codes), Recent Results, Deputy Community Prosecutor, Examples of Cases Prosecuted (3),
Diversionary Programs, and Community Prosecutor Program (2).
Huntington Beach Police Chief Parra stated his support for this effort to address quality of life issues for
residents, and noted many cases are being handled that might not otherwise be addressed.
Mayor Pro Tem Posey stated he would like to have received the PowerPoint communication at least a
day before the meeting, and asked for the report to include actual numbers to support the claim of crime
reduction. Mayor Pro Tem Posey also asked that future reports show code enforcement fines and fees
assessed vs how much is actually collected.
CONSENT CALENDAR
Councilmember Carr pulled #14; Councilmember Kalmick pulled #16; Councilmember Moser pulled #17;
and, Councilmember Bolton pulled #22 for further discussion.
13. 22-252 Approved and Adopted Minutes
A motion was made by Kalmick, second Posey to approve and adopt the City Council/Public Financing
Authority regular meeting minutes dated March 15, 2022; and, approve and adopt the City Council/Public
Financing Authority special meeting minutes dated March 25, 2022; and, approve and adopt the City
Council/Public Financing Authority regular meeting minutes dated April 5, 2022; and, approve and adopt
the City Council/Public Financing Authority special meeting minutes dated April 6, 2022; and approve
and adopt the City Council/Public Financing Authority special meeting minutes dated April 8, 2022.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
14. 22-338 Approved appointments to the Mobile Home Advisory Board (MHAB) as
recommended by City Council Liaisons Carr and Kalmick
Councilmember Carr pulled this item to confirm with City Attorney Michael Gates that it is appropriate for
Council to also fill the remaining vacancy, and amended the recommended action to include the
appointment of Tim Geddes as an At-Large Member.
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A motion was made by Carr, second Bolton to approve the appointment of Scott Miller as At-Large
Member of the MHAB through August 4, 2024, the end of term for the current vacancy; and approve the
appointment of Carolyne Chase as Resident Member of the MHAB through August 4, 2024, the end of
term for the current vacancy; and approve the appointment of Valerie Avila as Owner Member of the
MHAB through August 4, 2024, the end of term for the current vacancy; as amended to approve the
appointment of Tim Geddes as At-Large Member of the MHAB.
The motion as amended carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
15. 22-003 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 Kalmick, 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: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
16. 22-302 TABLED Resolution No. 2022-10 establishing Permit Parking District "AA" affecting
residents on Lakeview Drive and Cliffview Lane
Councilmember Kalmick pulled this item to allow for discussion and consideration of the opposition
communication received just prior to the meeting, and noted that historically this type of action has been
appropriate when a new multi-family development impacts neighborhood parking.
Councilmember Carr stated her opposition to this item because it will only push the issue onto other
neighborhood streets and it only affects 12 homes.
Mayor Pro Tem Posey stated his support for the comments made by Councilmembers Kalmick and Carr.
Councilmember Peterson shared his opinion that residents have followed the required process that
normally results in Council approval, and stated his support for either approving as presented, or
delaying a decision and requesting additional information.
Councilmember Carr responded by confirming that Cliffview Drive only has fifty percent (50%) of the
residents wanting permit parking, not the required seventy-five percent (75%), and therefore the item
should not be approved to include Cliffview Drive. Councilmember Car further stated it does not seem
appropriate to create a permit parking district for only eight residences.
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Bob Stachelski, Transportation Manager, noted that the seventy-five percent threshold is met when the
responses from the two streets are combined.
Mayor Pro Tem Posey stated that if there was a process that guaranteed approval, there would be no
need to bring it before City Council, and Council is required to be subjective in their decision to approve,
or not.
Councilmember Kalmick noted that Council must approve, or not, parking districts that impact parks or
schools. He asked for clarification on whether the real issue is overnight parking, or proper space for
ride pick-up vehicles. He confirmed with Manager Stachelski that the red curbs were City authorized to
address visibility and safety issues, and are maintained by the City; and if approved, this would be the
smallest parking district.
Interim City Manager Joyce stated if Council took no action on this item, staff would review for possible
alternative actions, and bring back at a later date.
Council tabled this item and took no action.
17. 22-278 Adopted Resolution No. 2022-13 authorizing the application for grant funds from
the State Department of Parks and Recreation through the Recreational Trails
Program
Councilmember Moser pulled this item to note it is a great example of a public/private partnership, and
thanked everyone who collaborated to prepare the application.
A motion was made by Moser, second Delgleize to adopt Resolution No. 2022-13, "A Resolution of the
City Council of the City of Huntington Beach Approving the Application for Grant Funds from the
Recreational Trails Program" from the State Department of Parks and Recreation.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
18. 22-317 Approved the escheatment of Unclaimed Funds per Government Code Sections
50050-50057
A motion was made by Kalmick, second Posey to review and approve the transfer of $29,086.88 of
unclaimed funds from the City's Unclaimed Funds Liability Account to the City's Miscellaneous Revenue
Account 10000100.48550 in compliance with Government Code Sections 50050-50057.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
19. 22-286 Authorized the City Manager to purchase a vactor truck for the Wastewater Division
of Public Works for $629,047.84
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A motion was made by Kalmick, second Posey to authorize the City Manager to purchase a vactor truck
in the amount of $629,047.84.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
20. 22-290 Approved and authorized appropriations and execution of a Reimbursement
Agreement with 4972 Warner Avenue Owner LP for $243,920 to fund an
Environmental Impact Report (EIR) to be prepared by LSA Associates, Inc. through
On Call Environmental (CEQA) Services contract dated April 5, 2022 for the
Huntington Beach Senior Living Project
A motion was made by Kalmick, second Posey to approve and authorize the Mayor and the City Clerk to
execute a "Reimbursement - Planning - Agreement Between the City of Huntington Beach and 4972
Warner Avenue Owner LP for Costs Incurred for Preparation of Environmental Impact Report for
Huntington Beach Senior Living Project" in the amount of $243,920 as prepared by the City Attorney
(Attachment No. 1); and, approve an increase in the Community Development Department's professional
services listing authority by $243,920 for the preparation of the Huntington Beach Senior Living
Environmental Impact Report to ensure compliance with Administrative Regulation Number 228, Section
7.1; and, appropriate funds as revenues are received in the amount of $243,920 from the General Fund
to the Community Development Department Professional Services Account 10060201.69365 for the On
Call Environmental (CEQA) Professional Services Contract Task Order between the City and LSA
Associates, Inc., which is funded by a reimbursement agreement.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
21. 22-301 Approved and authorized execution of Professional Services Contracts for On-Call
Transportation Engineering Consulting Services with Advantec Consulting
Engineers, Inc., AGA Engineers, Inc., FPL and Associates, Inc., KOA Corporation,
Linscott, Law & Greenspan Engineers dba LG2WB Engineers, Inc. and Michael
Baker International Inc.
A motion was made by Kalmick, second Posey to approve and authorize the Mayor and City Clerk to
execute a $500,000 "Professional Services Contract Between the City of Huntington Beach and
Advantec Consulting Engineers, Inc. for On-Call Transportation Engineering Services;" and, approve and
authorize the Mayor and City Clerk to execute a $500,000 "Professional Services Contract Between the
City of Huntington Beach and AGA Engineers, Inc. for On-Call Transportation Engineering Services;"
and, approve and authorize the Mayor and City Clerk to execute a $500,000 "Professional Services
Contract Between the City of Huntington Beach and FPL and Associates, Inc. for On-Call Transportation
Engineering Services;" and, approve and authorize the Mayor and City Clerk to execute a $500,000
"Professional Services Contract Between the City of Huntington Beach and KOA Corporation for On-Call
Transportation Engineering Services;" and, approve and authorize the Mayor and City Clerk to execute a
$500,000 "Professional Services Contract Between the City of Huntington Beach and Linscott, Law &
Greenspan dba LG2WB for On-Call Transportation Engineering Services;" and, approve and authorize
the Mayor and City Clerk to execute a $500,000 "Professional Services Contract Between the City of
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Huntington Beach and Michael Baker International, Inc. for On-Call Transportation Engineering
Services."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
22. 22-358 Approved and authorized execution of a Memorandum of Understanding between
the City of Huntington Beach and the Huntington Beach City School District
(HBCSD) – (Gisler Residential Project)
Councilmember Bolton pulled this item to confirm how AYSO is involved in the discussions related to
selecting lighted playing fields, and Chris Slama, Director of Community and Library Services, confirmed
that AYSO was included in a recent meeting with the City and Huntington Beach City School District, and
if this MOU is approved by Council, AYSO has agreed to be available for regular meetings as the specific
project moves forward. Director Slama also noted that this MOU is intended to benefit the whole
community, not just one user group.
Councilmember Bolton stated her support for this item.
A motion was made by Bolton, second Moser to approve and authorize the Mayor and City Clerk to
execute a "Memorandum of Understanding Between the City of Huntington Beach and the Huntington
Beach City School District - HBCSD;" and, establish a fund/account to deposit the $500,000 paid by the
developer to be used to fund a sports field lighting project on HBCSD property and appropriate the funds
to reimburse HBCSD for eligible project costs.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
23. 22-311 Adopted Ordinance No. 4251 adding Chapter 10.53 to Title 10 (Vehicles and Traffic)
of the Huntington Beach Municipal Code, prohibiting the unlawful possession of
catalytic converters in the City
Approved for introduction — April 5, 2022, Vote: 7-0
A motion was made by Kalmick, second Posey to adopt Ordinance No. 4251, "An Ordinance of the City
Council of the City of Huntington Beach Adding a New Chapter 10.53 to Title 10 of the Huntington Beach
Municipal Code, Prohibiting the Unlawful Possession of Catalytic Converters in the City, and Making a
Finding of Exemption Under CEQA."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
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PUBLIC HEARING
24. 22-269 Adopted Resolution No. 2022-15 approving Amendment No. 1 (Substantial) to the
2022-2023 Annual Action Plan, and Resolution No. 2022-16 approving the 2022-2023
Annual Action Plan for Federal Community Development Block Grant (CDBG) and
Home Investment Partnerships (HOME) Entitlement Grant Programs
Deputy Director of Community Development, Steve Holtz, introduced Housing Manager Charles Kovac
who presented a PowerPoint communication titled 2022-23 Annual Action Plan and the Amendment No.
One (Substantial) to the 2021-22 Annual Action Plan, with slides entitled: Background (2), 2022-23
Anticipated Funding, CDBG Public Services, Revised CDBG Funding Adjustments, CDBG Capital &
Housing Preservation Projects, CDBG Administration, Revised CDBG Funding Adjustments, HOME
Allocations, Revised HOME Funding Adjustments, Recommendations, 2021-22 Action Plan Substantial
Amendment (2), Recommendations, and Questions.
Mayor Delgleize opened the Public Hearing for this item.
Pursuant to the Brown “Open Meetings” Act, City Clerk Robin Estanislau announced supplemental
communications for this Public Hearing received by her office following distribution of the Council Agenda
packet:
Public Hearing
#24 (22-269) PowerPoint presentation entitled City Council Public Hearing on 2022-23 Annual Action
Plan and Amendment No. One (Substantial) to the 2021-22 Annual Action Plan submitted
by Ursula Luna-Reynosa, Director of Community Development.
City Clerk Estanislau announced there were no public speakers.
Mayor Delgleize closed the Public Hearing.
A motion was made by Carr, second Moser to adopt Staff recommendations that the City Council
approve and authorize the following in compliance with the Consolidated Plan Procedures of 24 CFR
Part 91: conduct a public hearing for the 2022-2023 Annual Action Plan and Amendment No. 1
(Substantial) to the 2021-2022 Annual Action Plan; and, adopt Resolution No. 2022-15, "A Resolution of
the City Council of the City of Huntington Beach Approving Amendment No. One (Substantial) to the
2021-2022 Annual Action Plan," and, adopt Resolution No. 2022-16, "A Resolution of the City Council of
the City of Huntington Beach, California, Approving the 2022-2023 Action Plan for Federal Community
Development Block Grant and HOME Investment Partnerships Programs;" and, authorize the City
Manager to sign all necessary related documents.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
25. 22-270 Adopted Resolution No. 2022-18 approving a 2021-2022 Annual Action Plan
Substantial Amendment to receive $2.2 million HOME Investment Partnerships –
American Rescue Plan (HOME-ARP) funds to address housing and homelessness
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Council/PFA Regular Minutes
April 19, 2022
Page 13 of 14
Deputy Director of Community Development, Steve Holtz, introduced Housing Manager Charles Kovac
who presented a PowerPoint communication titled 2021-22 Annual Action Plan Substantial Amendment
Related to HOME-ARP Funding with slides entitled: Background, Eligible HOME-ARP Activities, HOME-
ARP Allocation Plan, HOME-ARP Consultations, Proposed HOME-ARP Funding, Recommendations,
and Questions.
Mayor Delgleize opened the Public Hearing for this item.
Pursuant to the Brown “Open Meetings” Act, City Clerk Robin Estanislau announced supplemental
communications for this Public Hearing received by her office following distribution of the Council Agenda
packet:
Public Hearing
#25. (22-270) PowerPoint communication entitled 2021-22 Annual Action Plan Substantial Amendment
Related to HOME-ARP Funding, submitted by Ursula Luna-Reynosa, Director of
Community Development.
City Clerk Estanislau announced there were no public speakers.
Mayor Delgleize closed the Public Hearing.
A motion was made by Moser, second Bolton to conduct a public hearing; and, adopt Resolution No.
2022-18, "A Resolution of the City Council of the City of Huntington Beach Approving a 2021-2022
Annual Action Plan Substantial Amendment to Integrate the HOME-ARP Allocation Plan"; and, authorize
the submittal of the Allocation Plan to HUD for review and approval; and, authorize the City Manager or
their designee to execute all necessary related documents.
The motion carried by the following vote:
AYES: Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: Peterson
COUNCILMEMBER COMMENTS (Not Agendized)
Councilmember Carr recommended seeing the The Waterman, a movie that chronicles the life of surfing
legend Duke Paoa Kahanamoku, currently showing at the Bella Terra Century Theater.
Councilmember Moser reminded everyone of the Greater Huntington Beach Interfaith Council
Community Service Day on Saturday, April 23.
Mayor Pro Tem Posey reported the Kiwanis Annual Easter Egg Hunt at Central Park was a big hit
attended by a record crowd.
Mayor Delgleize thanked all of the volunteers for participating in the very popular Easter Egg Hunt dunk
tank.
Councilmember Bolton reported attending the 25th Anniversary Human Relations Committee celebration,
and appreciation for the historical video that reviews the hate incident that motivated Former Mayors
Ralph Bauer and Shirley Dettloff to create the Human Relations Commission.
80
Council/PFA Regular Minutes
April 19, 2022
Page 14 of 14
ADJOURNMENT — 8:38 PM in memory of Tony Soriano, former Environmental and Sustainability
Board Member, to the next regularly scheduled meeting of the Huntington Beach City Council/Public
Financing Authority on Tuesday, May 3, 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
_______________________________________
City Clerk and ex-officio Clerk of the City Council
of the City of Huntington Beach and Secretary of
the Public Financing Authority of the City of
Huntington Beach, California
ATTEST:
______________________________________
City Clerk-Secretary
______________________________________
Mayor-Chair
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-378 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Chris Slama, Director of Community & Library Services
PREPARED BY:Chris Cole, Community Services Manager
Subject:
Approve appointments and reappointments to the Fourth of July Executive Board with terms
set to expire in 2023 and 2025
Statement of Issue:
There is a need to fill several vacancies on the Fourth of July Executive Board (Board). Per
Huntington Beach Municipal Code (HBMC) 2.106, “the composition of the Board shall consist of 9 to
15 members appointed by Council upon the recommendation of the liaisons to the Board.” The
Board currently consists of less than the required members-just five members, each of whom is
recommended for reappointment, and seven applicants recommended for their initial appointment,
bringing the proposed roster to 12.
Financial Impact:
Not applicable.
Recommended Action:
A) As recommended by City Council Member Liaisons Erik Peterson and Natalie Moser, approve
the reappointment of Andi Kowal, Pat Love, Karen Pederson, Linda Vircks, and Chris Young and the
appointment of Lisa Marie Moreo and Don Ramsey to the Fourth of July Executive Board with terms
to expire September 30, 2023; and,
B) As recommended by City Council Member Liaisons Erik Peterson and Natalie Moser, approve
the appointment of Paul Simonds, Shannon Smith, Allison Stevens, Floreal Taboada, and Ryan Van
Tuyl to the Fourth of July Executive Board with terms to expire September 30, 2025.
Alternative Action(s):
Do not approve the recommendations, and direct staff accordingly.
Analysis:
The Fourth of July Executive Board assists the City’s Fourth of July contractors with planning the
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File #:22-378 MEETING DATE:5/3/2022
Fourth of July Parade and festivities. Per HBMC 2.106, “the Board shall consist of 9 to 15 members,
appointed by City Council upon the recommendation of the Council Liaisons to the Board.” The
Board is currently operating with only five members. A notice of vacancy was posted and a
recruitment was initiated through various social media and online mediums. A total of 22 applications
were received.
After reviewing all applications, Council Member Liaisons Peterson and Moser recommended the
reappointment of the five existing board members:Andi Kowal, Pat Love, Karen Pederson, Linda
Vircks, and Chris Young. All have been instrumental in planning the Fourth of July festivities for
many years.
Additionally, Council Member Liaisons Peterson and Moser are recommending the appointment of
the following seven applicants:Lisa Marie Moreo, Don Ramsey, Paul Simonds, Shannon Smith,
Allison Stevens, Floreal Taboada, and Ryan Van Tuyl.
Per HBMC 2.100.065, member terms must be “staggered so that the majority of terms shall end in
odd-numbered years following the election of four council members and the remainder of terms shall
end in odd-numbered years following the election of three council members.” Based on this directive,
7 of the 12 appointment terms (the majority) must expire in 2023, with the remaining five terms
expiring in 2025.
Those appointees whose initial terms expire in 2023 will be eligible for reappointment to two, four-
year terms since they will have served just over a year by September 30, 2023. Those members
whose reappointment terms expire in 2023 have already served for many consecutive years.
However, these re-appointees would also be eligible for reappointment consideration following a 30-
day period from term expiration. As HBMC 2.100.060 states, “No person who has served two
consecutive terms on any one board or commission shall be eligible for reappointment to the same
board or commission within 30 days of the expiration of the person’s most recent term.”
Those members whose terms expire in 2025 will only be eligible to serve one additional four-year
term since by September 30, 2025 they will have served over three years. Should it be determined to
recommend three additional candidates for appointment in the future, one of the three would be
appointed to a term expiring in 2023 and two would be appointed to terms expiring in 2025, thus
bringing the full composition of the Board to eight members with terms expiring in 2023 (the majority)
and seven members with terms expiring in 2025.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
Attachment(s):
1. 2022 Fourth of July Executive Board Roster
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FOURTH OF JULY EXECUTIVE BOARD
2022
BOARD MEMBERS
ANDI HAMAMOTO-KOWAL
Appointed 5/3/2022
Term expires 9/30/2023
PAUL SIMONDS
Appointed 5/3/2022
Term expires 9/30/2025
PAT LOVE
Appointed 5/3/2022
Term expires 9/30/2023
SHANNON SMITH
Appointed 5/3/2022
Term expires 9/30/2025
KAREN PEDERSEN
Appointed 5/3/2022
Term expires 9/30/2023
ALLISON STEVENS
Appointed 5/3/2022
Term expires 9/30/2025
LINDA VIRCKS
Appointed 5/3/2022
Term expires 9/30/2023
FLOREAL TABOADA
Appointed 5/3/2022
Term expires 9/30/2025
CHRIS YOUNG
Appointed 5/3/2022
Term expires 9/30/2023
RYAN VAN TUYL
Appointed 5/3/2022
Term expires 9/30/2025
LISA MARIE MOREO
Appointed 5/3/2022
Term expires 9/30/2023
DON RAMSEY
Appointed 5/3/2022
Term expires 9/30/2023
PARADE CONSULTANTS
SOUNDSKILZ
STACEY HOFFER
COUNCIL LIAISONS STAFF LIAISON
NATALIE MOSER
ERIK PETERSON
CHRIS COLE
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-353 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:Kenneth Dills, Administrative Services Manager
Subject:
Adopt Resolution 2022-21 adopting a list of projects for Fiscal Year 2022/23 fund by SB 1: The
Road Repair and Accountability Act of 2017
Statement of Issue:
The City is required to identify the projects that will utilize this funding via the adoption of a resolution
to receive State of California SB 1 funding.
Financial Impact:
Adoption of the resolution is a pre-requisite for receipt of an estimated $4,487,676 of SB 1 funding
from the State, which will be deposited in the RMRA Fund 1247. Funds will be used toward eligible
street and transportation projects.
Recommended Action:
Adopt Resolution 2022-21, “A Resolution of the City Council of the City of Huntington Beach Adopting
a List of Projects for Fiscal Year 2022/23 Funded by SB 1: The Road Repair and Accountability Act of
2017.”
Alternative Action(s):
Do not adopt the resolution and instruct staff on how to proceed. By this action, the City would
forego the $4,487,676 of estimated funding for Fiscal Year 2022/23.
Analysis:
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was passed by the Legislature
and signed into law by the Governor in April 2017 to address the significant transportation shortfalls
statewide. Based on the City of Huntington Beach’s population, it is estimated the City will receive
$4,487,676 of FY 2022/23 for use on eligible street and transportation projects. A pre-requisite to
receiving funds is the submittal of a City Council resolution to identify proposed projects that will
utilize this funding. The proposed Capital Improvement Program (CIP) Budget for FY 2022/23
identifies the use of these funds, in addition to other local funds, for the annual Arterial Rehabilitation
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File #:22-353 MEETING DATE:5/3/2022
Project. The arterial streets proposed to be fully rehabilitated are:
·Banning (Magnolia to Bushard)
·Bolsa (Graham to Edwards)
·Brookhurst (Indianapolis to Bushard)
·Edinger (Goldenwest to Gothard)
·Edinger (Saybrook to Countess)
·Garfield (Ward to City Limits)
·Hamilton (Newland to Magnolia
·Heil (Goldenwest to Gothard)
The City retains the ability to alter this list as long as the funds are spent on eligible projects. Since FY
2017/18, the infusion of these funds has helped to increase the City’s overall pavement condition index (PCI).
Environmental Status:
Not applicable for this action.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Resolution 2022-21 “ A Resolution of the City Council of the City of Huntington Beach
Adopting a List of Projects for Fiscal Year 2022/23 Funded by SB 1:The Road Repair and
Accountability Act of 2017”
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-323 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:Bob Milani, Principal Civil Engineer
Subject:
Approve and accept Public Improvements for the Slater Storm Water Pump Station and
release the Securities posted with Tract 15377
Statement of Issue:
Shea Homes Limited Partnership, A California Limited Partnership, the subdivider of Tract 15377, has
completed all required public improvements related to the Slater Storm Water Pump Station and is
now eligible to receive a release of securities pursuant to the provisions of the Subdivision Map Act.
Financial Impact:
No City resources required with this action
Recommended Action:
A) Accept the improvements constructed to the Slater Storm Water Pump Station with Tract 15377
(Attachment 1) and instruct the City Clerk to record the “Notice of Acceptance of Public
Improvements” (Attachment 2) with the Orange County Recorder; and,
B) Release the Faithful Performance Bond No. 0195161, Labor and Materials Bond No. 0195161,
pursuant to the California Government Code Section No. 66499.7(a); and,
C) Accept Guarantee and Warranty Bond No. 0195161M (Attachment 3): the security furnished for
guarantee and warranty of public improvements, and instruct the City Clerk to file the bond with the
City Treasurer; and,
D) Instruct the City Clerk to notify Shea Homes Limited Partnership, the subdivider of Tract No.
15377, and the City Treasurer to notify Berkley Insurance Company of these actions.
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File #:22-323 MEETING DATE:5/3/2022
Alternative Action(s):
Deny the recommended action. Denying the recommended action may violate the Subdivision Map
Act whereby:
1. Section 66499.7 of the Government Code requires that the securities given for the faithful
performance of constructing the public improvements shall be released upon acceptance of
the work.
2. Section 66499.9 of the Government Code requires the Guarantee and Warranty of the work
for a period of one year following completion and acceptance of the improvement against any
defective work, labor and materials furnished. Denying the acceptance of the Guarantee and
Warranty bond may place undue burden and cost upon the city for correcting any defective
work, labor and material provided by the subdivider.
Analysis:
On June 1, 2009,City Council approved Final Tract Map No. 15377 and the Subdivision Agreement
between the City of Huntington Beach and Shea Homes and also accepted the required bonds. The
subdivider has now completed the below public improvements and is requesting release of the
aforementioned securities, pursuant to California Government Code Section 66499.7(a). The
constructed improvements include all work and material related to the Slater Storm Water Pump
Station.
The City Engineer has determined that this public improvement has been constructed in substantial
compliance with the approved plans and specifications and recommends acceptance of the
improvement. Shea Homes has provided a Guarantee and Warranty Bond No. 0195161M as security
for the one-year warranty period and is now requesting acceptance of this bond.
Following is a list of the project data:
SUBDIVIDER: Shea Homes Limited Partnership
2 Ada, Suite 200, Irvine, CA, CA 92618
ENGINEER: Hunsaker and Associates
3 Hughes, Irvine, CA 92618
LOCATION: 17301 Graham Street (west side of Graham Street, south of Warner Avenue, adjacent
to the Wintersburg Flood Control Channel)
NO. OF ACRES: 45 acres
NO. OF UNITS: 111 detached single family residential units
SURETY: Berkley Insurance Company, 475 Steamboat Road, Floor 1, Greenwich, CT 06830
Environmental Status:
This recommended action is a ministerial act and is exempt from the requirements of the California
Environmental Quality Act pursuant to State CEQA Guidelines, California Administrative Code, Title
City of Huntington Beach Printed on 4/27/2022Page 2 of 3
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File #:22-323 MEETING DATE:5/3/2022
14, Chapter 3, Section 15268(b).
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Location Map
2. Notice of Acceptance of Public Improvements
3. Guarantee and Warranty Bond No. 0195161M
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ATTACHMENT #1
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-359 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Eric Parra, Chief of Police
PREPARED BY:Ingrid Ono, Administrative Assistant
Subject:
Approve sole source purchases of an L3 Wescam IR camera, Aerocomputers moving map
system, and Technisonic aviation radio for the Huntington Beach Police Department (HBPD)
Aero Unit
Statement of Issue:
City Council approval is requested for the sole source purchases of an L3 Wescam IR camera,
Aerocomputers moving map system, and Technisonic aviation radio to replace recently damaged
helicopter equipment and appropriate insurance proceeds to purchase the equipment and
replacement helicopter.
Financial Impact:
The City received $1.4 million of insurance proceeds under the City’s Aircraft Insurance Policy to
replace the damaged helicopter and equipment. The cost of the replacement equipment for the
HBPD helicopter is $635,396. The remaining proceeds will go toward the purchase of a new
replacement helicopter approved by City Council in the FY 2021/22 Budget. The insurance proceeds
fully covers the replacement costs of the equipment and the trade-in value of the helicopter before
being damaged. No additional funding is needed above what was approved by City Council.
Recommended Action:
A) Approve Sole Source purchase of L3 Wescam IR camera, Aerocomputers moving map system,
and Technisonic aviation radio; and,
B) Appropriate $1.4 million in the Equipment Replacement Fund (Fund 324) to replace the damaged
helicopter and equipment.
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File #:22-359 MEETING DATE:5/3/2022
Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
The HBPD Air Support Unit has L3 Wescam IR cameras, an Aerocomputers moving map system,
and a Technisonic aviation radio installed in its helicopters. Recently, a set of this equipment was
damaged beyond repair due to the helicopter accident in February 2022. Both the current and new
helicopters are wired and configured specifically for these pieces of equipment. The Air Support unit
utilizes the radio, mapping and camera equipment on the three helicopters. To maintain efficiency in
both the operation and the repair and maintenance, the same equipment is required across all units.
There would be additional costs incurred to reconfigure and retrofit the current and new helicopters to
be able to utilize any substitute equipment.
Environmental Status:
Not Applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Sole source justification - Dallas Avionics - moving map.
2. Sole source justification - L3 Harris Tech - radio.
3. Sole source justification - Aerocomputers - camera.
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-332 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:William Janusz, Principal Civil Engineer
Subject:
Accept bid and authorize the Mayor and City Clerk’s execution of a construction contract with
Ferreira Construction Co., Inc., dba Ferreira Coastal Construction Co., in the amount of
$109,021 for the construction of Fiber Optic Communications from City Hall to the Utility Yard,
CC-1646, and authorize change orders not to exceed 15 percent.
Statement of Issue:
On April 5, 2022, bids were opened for the construction of fiber optic communications from City Hall
to the Utility Yard located at the intersection of Garfield Avenue and Huntington Street. City Council
action is requested to award the construction contract to Ferreira Construction Co. Inc., dba Ferreira
Costal Construction Co., the lowest responsive and responsible bidder, consistent with the FY21/22
Capital Improvement Program.
Financial Impact:
The funds needed for this project is $146,000. $168,000 has been approved within the FY 2021/22
Capital Improvement Program from the Water Administration Fund, Account Number
50685801.82800.
Recommended Action:
A) Accept the lowest responsive and responsible bid submitted by Ferreira Construction Co. Inc.,
dba Ferreira Costal Construction Co., in the amount of $109,021; and,
B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the
City Attorney; and,
C) Authorize the Director of Public Works to execute change orders not to exceed a total of 15
percent of the contract construction costs, or $16,353.
Alternative Action(s):
Reject all bids and provide staff with alternative direction.
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File #:22-332 MEETING DATE:5/3/2022
Analysis:
The Information Services Division of the Administrative Services Department, in consultation with the
Public Works Department, identified the need to upgrade the fiber optic connection between City Hall
at the Utility Yard at Garfield Avenue and Huntington Street. The project was included in the fiscal
year 2021/22 Capital Improvement Program. The existing cable, installed in the 1990s, has very
limited capacity with only a six strand cable installed. To maximize capacity and meet anticipated
data needs, two 144 strand fiber optic cables will be installed utilizing primarily the existing conduits.
Some minor modifications and upgrades are needed along the routing to facilitate the installation of
the two cables.
A complete set of plans and specifications are available for review at the Public Works counter during
normal business hours.
Bids were opened on April 5, 2022 and are listed in ascending order:
Bidder Submitted Bid Verified Bid Amount
1 Ferreira Construction Co, Inc.$109,021.00 $109,021.00
2 JFL Electric, Inc.$115,240.00 $115,240.00
3 Elecnor Belco Electric, Inc.$118,811.00 $118,811.00
4 Servitek Electric, Inc.$120,025.00 $120,025.00
5 Crosstown Electrical & Data, Inc.$122,152.00 $122,152.80
6 Asplundh Construction, LLC $123,983.00 $123,983.00
7 Alfaro Communications Construction, Inc.$134,960.00 $134,960.00
8 Select Electric, Inc.$145,250.00 $145,250.00
9 DBX, Inc.$174,460.00 $174,460.00
10 Extenda Networks, Inc.$190,777.00 $190,777.00
The total cost of this project is $146,000 as outlined below:
Bid $109,021.00
15% Construction Contingency $ 16,353.00
Construction Administration $ 20,626.00
Total $146,000.00
Staff is requesting that the Director of Public Works be given authorization to approve change orders
on this project up to 15 percent of the construction bid rather than the standard 10 percent. This
request is based upon the fact that the work on this project is highly specialized and the project
contract amount is relatively small compared with a typical construction contract.
CIAB/Public Works Commission Action:
The CIAB/Public Works Commission recommended this project on February 16, 2022, by a vote of 7-
0-4 (Cicerone, Ferlita, Nguyen and Schlosser absent)
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File #:22-332 MEETING DATE:5/3/2022
Environmental Status:
This project is categorically exempt pursuant to the California Environmental Quality Act, Section
15303 (c).
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Project Location Map
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-352 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:Darren Sam, Senior Traffic Engineer
Subject:
Accept bid and authorize execution of a construction contract with Asplundh Construction,
LLC, in the amount of $696,776 for the construction of the Street Lighting Modification Project
on Orange Avenue (CC-1612) and Crest Avenue (CC-1644), and authorize change orders not to
exceed 15 percent
Statement of Issue:
Two Street Lighting Modification Projects on Orange Avenue and on Crest Avenue that were
budgeted as part of the FY2021/22 Capital Improvement Program were advertised. Fourteen bids
were received and opened on April 5, 2022. City Council action to award the project to the lowest
responsive and responsible bidder is requested.
Financial Impact:
Funds in the amount of $1.36 million have been appropriated in the current budget year for the
upgrading and replacement of street lighting in the downtown area. Funding in the amount of
$650,000 is budgeted in Infrastructure Fund Account 31440005.82850 and $710,000 is budgeted in
Proposition 42 Account 21990423.82850 for a total of $1.36 million for street lighting modifications.
Recommended Action:
A) Accept the lowest responsive and responsible bid submitted by Asplundh Construction, LLC, in
the amount of $696,776; and,
B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the
City Attorney; and,
C) Authorize the Director of Public Works to execute change orders not to exceed a total of 15
percent of the contract construction costs, or $104,516.
Alternative Action(s):
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File #:22-352 MEETING DATE:5/3/2022
Reject all bids and provide staff with alternate direction.
Analysis:
The existing street lighting system on sections of Orange Avenue and Crest Avenue are
approximately 80 years old and were built to an old design standard. The street light poles and
conduits are severely rusted and corroded. Additionally, these systems operate at high voltage of
4,000 to 6,000 volts, compared to a standard 120/240 volt system. Due to the deteriorated
conditions of these street lights and their operation at high voltage, the risks with performing
maintenance functions is significantly increased. Failures within the street light circuit are often
prolonged due to difficulty making repairs or with Southern California Edison not having readily
available replacement equipment. These factors compel the City to replace each of these old circuits
within the downtown area to provide safe and reliable street lighting. The City has conducted several
similar projects in the past 10 years replacing the old systems in the downtown area and upgrading
these systems to modern standards, including the use of energy efficient and long lasting LED
fixtures. The street lighting on Orange Avenue and Crest Avenue are identified as the next prioritized
street light systems requiring upgrades and were included in the Capital Improvement Program.
The street lighting upgrades on Orange Avenue are located between 2nd Street to 11th Street, and on
Crest Avenue between 14th Street and Lake Street. The Crest Avenue upgrades include four street
lights on the east side of Lake Street between Crest Avenue and Palm Avenue, and three lights in
Farquhar Park. In total, 83 streetlights will be replaced with this project. The project will replace the
poles, luminaires, install new conduit, conductors and be connected to operate at current design
standards of 120 or 240 volts. A complete set of plans and specifications are available for review at
the Public Works counter during normal business hours.
Bids for the project were opened on April 5, 2022 and are listed in ascending order:
No.Bidder Submitted Bid
1 Asplundh Construction, LLC $696,776.00
2 Servitek Electric, Inc.$763,811.00
3 California Professional Engineering, Inc.$798,913.00
4 Comet Electric, Inc.$799,308.00
5 KDC Inc. dba Dynalectric L.A.$811,451.00
6 International Line Builder’s Electric, Inc.$823,267.00
7 Ferreira Construction Co, Inc. dba Ferreira Coastal Construction Co.$834,321.00
8 DBX, Inc.$893,471.00
9 Select Electric, Inc.$898,500.00
10 M Brey Electric, Inc.$916,450.00
11 Alfaro Communications Construction, Inc.$945,600.00
12 Elecnor Belco Electric, Inc.$978,000.00
13 Crosstown Electrical & Data, Inc.$1,020,780.00
14 JFL Electric, Inc.$1,229,800.00
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File #:22-352 MEETING DATE:5/3/2022
The estimated cost of the project which includes City purchased equipment is $1,300,000 and is summarized
below:
Contractor’s Bid $696,776
15% Construction Contingency $104,516
City Furnished Equipment $370,000
Contract Administration $128,708
Total $1,300,000
It is requested that the Director of Public Works be given authorization to approve change orders up
to 15 percent on this project. The request is approximately equivalent to the standard 10 percent
contingency based on the total of the construction contract amount plus City purchased materials.
This authorization will provide the added flexibility needed to complete a typical construction project
and be consistent with the 10% contingency limit intent.
CIAB/Public Works Commission Action:
The Public Works Commission recommended the Orange Avenue Street Light Modification Project
on September 15, 2021 by a vote of 5-0-1 (Ferlita absent). The CIAB/Public Works Commission
recommended the Crest Avenue Street Light Modification Project on February 16, 2022 by a vote of
7-0-4 (Cicerone, Ferlita, Nguyen, and Schlosser absent).
Environmental Status:
The project is categorically exempt pursuant to the California Environmental Quality Act, Section
15302 (c).
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Location Map
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139
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-365 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:Eduardo Cerda, Civil Engineering Assistant
Subject:
Accept the lowest responsive and responsible bid, approve appropriations and authorize
execution of a construction contract with Orion Construction Corporation in the amount of
$747,000 and appropriate funds for the McCallen Storm Drain Trash Removal Project CC-1588 .
Statement of Issue:
On April 14, 2022, bids were received for the McCallen Storm Drain Trash Removal Project, CC-
1588. City Council action is requested to award the construction contract to Orion Construction
Corporation, the lowest responsive and responsible bidder.
Financial Impact:
Total project cost, including contingency and supplemental expenses, is $971,100. The City has been
awarded a grant through OCTA in the amount of $500,000 to offset this cost. The project will be
included in the proposed FY 2022/23 Capital Improvement Program. However, one of the
stipulations of the grant is that the contract be awarded by the end of the current fiscal year. The
grant funds will be budgeted in the proposed FY 2022/23 budget in account 127585101.82500.
Matching funds in the amount of $310,000 will be budgeted in the proposed FY 2022/23 budget in
Infrastructure Fund account 31440006.82500. Additionally, staff requests an appropriation of
$161,100 to Drainage Fund account 21185201.82500, which will be carried over into the new fiscal
year.
Recommended Action:
A) Accept the lowest responsive and responsible bid submitted by Orion Construction Corporation
in the amount of $747,000; and
B) Appropriate $161,100 in additional funding from the Drainage Fund to account 21185201.82500;
and
C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the
City Attorney.
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File #:22-365 MEETING DATE:5/3/2022
Alternative Action(s):
Reject all bids, or provide staff with alternative action.
Analysis:
The McCallen Storm Drain Trash Removal Project proposes to install a StormTrap trash removal
device under Delaware Street and adjacent to McCallen Park. The proposed structure will intercept
trash from a 93” storm drain mainline that runs along Delaware Street, conveying storm flows and
urban runoff from a 382 acre watershed. The project is necessary to comply with the State’s trash
provisions requiring cities to implement trash removal devices that remove trash that is 5mm or
greater in size from the storm drain system. In addition, the City applied for and was awarded a grant
through OCTA in the amount of $500,000.
Bids were received on April 14, 2022, with the following results:
BIDDER'S NAME BID AMOUNT
GCI Construction, Inc
(Bid Withdrawal)
$584,918
Orion Construction
Corporation
$747,000
BONADIMAN WATER $953,860
The apparent lowest bid was submitted by GCI Construction. On April 20, 2022, GCI Construction
submitted a Letter of Withdrawal due to an error on their bid sheet. Therefore, GCI Construction is
considered nonresponsive. Staff recommends awarding a construction contract to Orion Construction
Corporation in the amount of $747,000. The total project cost is estimated to be $971,100, which
includes the construction contract bid amount above, construction management and inspection,
supplementals, and 20% construction contingency.
Public Works Commission Action:
The Public Works Commission reviewed and approved CC-1588 on March 16, 2022.
Environmental Status:
The project is categorically exempt pursuant to Class 1, section 15031b of the California
Environmental Quality Act.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Vicinity Map
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143
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-363 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Sean Crumby, Director of Public Works
PREPARED BY:Joseph Fuentes, Senior Civil Engineer
Subject:
Authorize additional contingency and appropriate funds for the Zone 5 Residential Overlay
Project, CC-1638
Statement of Issue:
Due to recent and significant increases in the cost of oil, additional funds are needed to complete the
Zone 5 Residential Overlay Project, CC-1638.
Financial Impact:
The original cost of the project, including contingency and supplemental expenses, is $3,034,500,
with funds budgeted in the Gas Tax, Infrastructure, Water and Sewer Fund Accounts. The new
project cost with a change order for asphalt increase is $3,300,500. To address the increased costs,
staff is requesting authorization for the Director of Public Works to approve change orders up to 20%
of the cost of construction. Staff is also requesting an appropriation of $266,000 from the Measure M
fund balance. Adequate funds are available in the Measure M Fund (Fund 213).
Recommended Action:
A) Authorize a 20% contingency for the Zone 5 Residential Overlay Project, CC-1638; and,
B) Appropriate $266,000 from the undesignated Measure M fund balance to account
21390002.82300.
Alternative Action(s):
Reject funding and reduce project scope of work.
Analysis:
This project will rehabilitate the pavement for approximately 80 of the most deteriorated residential
street segments in Maintenance Zone 5, which is bounded by Yorktown Avenue to the north, Beach
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Boulevard to the east, and Pacific Coast Highway to the south and west. Work will include limited
localized pavement repairs, crack sealing, cold milling, striping, and asphalt overlay.
From the time of bid opening in January 2022 to the start of construction in April 2022, the cost of oil
significantly increased since the time R.J. Noble provided its bid to supply asphalt for the project.
Despite RJ Noble’s best efforts to work around this sudden and unexpected increase, it is at a
standstill from procuring the required asphalt without an equitable price adjustment.
The force majeure clause in its contract with the City works to mitigate negative effects of force
majeure events such as war, acts of nature, and other situations that trigger disruptions in business
operations, supply chain, labor, and materials. In this case, the price of oil has risen so dramatically
that it has made it impracticable for RJ Noble to purchase asphalt and perform its paving operations
without a contract price adjustment.
The original total cost of the project was $3,034,500. The recommendation for the project is to
increase the project contingency costs by an additional $266,000 to cover any potential change
orders as a result of the increase to the cost of oil. The new cost of the project is $3,300,500.
Environmental Status:
The project is categorically exempt pursuant to Class 1, Section 15301(c) of the California
Environmental Quality Act.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Vicinity Map
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146
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-360 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Ursula Luna-Reynosa, Director of Community Development
PREPARED BY:Kriss Casanova, Economic Development Manager
Subject:
Approve and authorize a First Amendment to the License Agreement with Bella Terra
Associates, LLC for a Police Substation at 7777 Edinger Avenue, Suite D-135
Statement of Issue:
The City Council is requested to authorize execution of a First Amendment to the License Agreement
with Bella Terra Associates, LLC for use of real property located at 7777 Edinger Avenue, Suite D-
135 by the Police Department for the Bella Terra Substation.
Financial Impact:
There is no financial impact associated with this request.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the “Amendment to License Agreement -
Bella Terra” for use of real property located at 7777 Edinger Avenue, Suite D-135 by the Police
Department for the Bella Terra Substation.
Alternative Action(s):
Do not approve the amendment and direct staff accordingly.
Analysis:
The License Agreement (“Agreement”) between the City and Bella Terra Associates, LLC, for a
police substation at the Bella Terra Mall was originally executed in 2006 and provided 2,030
square feet of office space at no cost. The substation at Bella Terra allows for a more substantial
police presence in the complex and the surrounding neighborhood, which helps to decrease
response times and allows officers to stay in a more centralized area when processing paperwork
and other routine assignments.
The agreement had a term of ten years,expiring in 2016,and has since been extended by mutual
consent of both parties.The amendment (Attachment #1) further extends the term to 2026,
reduces the size of the space from 2,030 square feet to 286 square feet, eliminates use of the
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File #:22-360 MEETING DATE:5/3/2022
reduces the size of the space from 2,030 square feet to 286 square feet, eliminates use of the
shared conference room, and provides one designated parking space. The smaller space is
sufficient for the Police Department to accommodate its work stations, computers, and electrical
equipment and allows Bella Terra Associates, LLC to utilize the additional space for their growing
internal team. The City will continue to only pay for its own telephone and cleaning services and
can terminate with 30 days written notice. Bella Terra Associates, LLC will spend approximately
$15,000 on improvements to modify the space.
Staff recommends approval of the proposed amendment, which has been reviewed and approved by
the City Attorney.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Amendment to the License Agreement
2. Original Staff Report and License Agreement
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149
150
151
152
2406 MAR —9 P11 1 33
Council/Agency Meeting Held ot0 (
Deferred/Continued to
Approved Conditionally Approved Denied
ct ell y Or
HU€v71r'G`f 01 B
I Cl s Si ature
Council Meeting Date 3/20/2006 Department ID Number ED 06-15
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO HONORABLE MAYOR AND CQWNCIL MEMBERS
SUBMITTED BY PENELO EE CCULBRETH-GRAFT CI Y ADMINISTRATOR
PREPARED BY KENNETH W SMALL CHIEF OF POLICE 04A60d4(.&
STANLEY SMALEWITZ DIRECTOR OF ECONOMIC
DEVELOPMENT
SUBJECT APPROVAL OF LICENSE AGREEMENT FOR BELLA TERRA
POLICE SUBSTATION AT 7777 EDINGER AVENUE SUITE D-135
Statement of Issue Funding Source Recommended Action Alternative Action(s) Analysis Environmental Status Attachment(s)
Statement of Issue The City Council is requested to approve a ten-year license
agreement with Bella Terra Associates, LLC for the use of real property located at 7777
Edinger Avenue Suite D-135 for use by the Police Department for the new Bella Terra
Substation
Funding Source Not Applicable
Recommended Action Motion to
1 Approve the lease agreement by and between the City of Huntington Beach and Bella
Terra Associates LLC for the use of real property located at 7777 Edinger Avenue
Suite D-135 for use by the Police Department for the Bella Terra Substation
2 Authorize execution of the lease agreement by the Mayor and City Clerk
Alternative Action(s) No alternatives to the proposed license agreement were considered
Analysis A license agreement between the City and Bella Terra Associates Inc for
a police substation at the new Bella Terra Mall is submitted for approval The mall owners
have made available approximately 2 030 square feet of office space to the City for use by
the Police Department at no cost The City will only pay for its own telephone and
cleaning services The term of the agreement is ten years however the City will have the
ability to terminate the agreement at any time upon 30 days written notice
ACH
E- 153
REQUEST FOR ACTION
MEETING DATE March 20, 2006 DEPARTMENT ID NUMBER ED 06-15
The Police Department has determined that operating a substation at Bella Terra will allow
for a more substantial presence in the complex and the surrounding neighborhood, which
would decrease response times and allow officers to stay in a more centralized area when
processing paperwork and other routine assignments The Department is currently
considering basing two full-time officers to operate the substation Thursday through
Sunday Volunteers are anticipated to staff the reception area during business hours
Monday through Friday
Staff recommends approval of the proposed license agreement which has been reviewed
and approved by the City Attorney
Environmental Status Not applicable
Attachment(s)
1 Lease agreement by and between the City of Huntington Beach
and Bella Terra Associates LLC for the use of real property
located at 7777 Edinger Avenue Suite D-135
2 Site Map
G \Steve\Real Estate\Police\RCA for Bella Terra Substation Lease doc 2
3/ 7/2006 9 03 AM
154
Lease agreement by and between the City of Huntington
Beach and Bella Terra Associates, LLC for the use of real
property located at 7777 Edinger Avenue, Suite D-135
ATTACHMENT #-1
155
LICENSE AGREEMENT
1#
This License Agreement ('Agreement') is made this djC day of March 2006 by and
between Bella Terra Associates, LLC, a Delaware limited liability company ("Licensor"), and
the City of Huntington Beach ('Licensee")
RECITALS
WHEREAS Licensor owns and operates the Bella Terra Shopping Center ('Center")
located at 7777 Edinger Avenue, Huntington Beach, California,
WHEREAS Licensee desires to occupy a portion of Suite D-135 located in the
Management Office/Secunty Offices located in the Center as shown on the attached Exhibit A,
consisting of approximately 2,030 square feet (hereinafter referred to as the 'Licensed Area") for
purposes of operating a City of Huntington Beach Police Substation and
WHEREAS Licensor is willing to grant Licensee use of the Licensed Area subject to the
terms and provisions of this Agreement,
NOW, THEREFORE, Licensor hereby grants and Licensee hereby accepts a revocable
license to operate at the Licensed Area, subject to the terms and provisions hereinafter set forth
ARTICLE I
LICENSED AREA AND USE THEREOF
Section 1 1 Licensor hereby grants to Licensee and Licensee hereby accepts from
Licensor a License to use the Licensed Area of the Centei The Licensed Area shall be used
solely for operation of a City of Huntington Beach Police Substation Licensee shall have the
right, but not the obligation to operate in Licensed Area 365 days per year, 24 hours per day
Section 12 The Licensed Area shall be equipped set up and maintained at the sole
expense of Licensee Licensor agrees to furnish to the Licensed Area electricity water gas,
trash service, internet access, and sewer service and deliver the Licensed Area to Licensee
equipped with these services Licensee accepts the Licensed Area in its current "as -is"
condition Subject to the provisions of Article XV below, Licensee shall have the right during
the term of this Agreement to make, at its own expense, any interior, cosmetic alterations or
improvements to the Licensed Area Licensee at Licensee's cost, shall repair any damage to the
Licensed Area caused by Licensee or Licensee s conti actors during performance of such
alterations or improvements in or on the Licensed Area Licensee shall have the right to install
satellite dishes and/or other antennas and/or other facilities for television, music and
telecommunications ( Communication Equipment') on, and affix Communication Equipment to
on or about the Licensed Area Any satellite dishes of antennas on the roof shall be properly
screened to Licensor's satisfaction Licensee s use of the Licensed Area shall be exclusive for
the term specified herein and not violate applicable laws and ordinances All such work shall be
performed in a first class manner and shall comply with all laws and regulations
Section 13 Licensor and Licensee acknowledge and agree that
156
a) Neither the Licensed Area, nor any other space or area whatsoever at the
Center is leased to the Licensee During the term of this Agreement, the Licensee shall have
the use of the Licensed Area as Licensee solely for the purposes and uses herein stated The
Licensee shall have the right to occupy the Licensed Area and to operate pursuant to the
License hereby granted and to continue in the possession thereof only so long Licensee is in
compliance with the terms and conditions of this Agreement
b) Licensee shall use the Licensed Area solely for the purpose stated in
Section 11, and for no other purposes whatsoever
c) Licensee shall in no way interfere with nor jeopardize the business or
reputation of the Property
d) Licensee acknowledges that neither the Licensor nor its personnel will
have any responsibility for the operation of the Licensed Area Licensee's operations therein or
any other aspect of Licensee's operations Licensee shall indemnify and hold harmless
Licensor (its officers, principals and employees), its Landlord and mortgagee (hereinafter
referred to collectively as the additional insureds') against any claims, costs or liabilities
related to or arising out of Licensee's use of the Licensed Area or Licensee s obligation under
this Agreement Licensee shall provide insurance as specified in Article IV of this Agreement
and name the additional insureds on these insurance policies as their interests may appear
Licensee further agrees to provide its employees within all required coverage, including without
limitation workmen s compensation insurance Licensee shall pay all costs incurred with
respect to the insurance coverage provided by Licensee under this Agreement
e) Licensee has not relied upon any representation statement or warranty of
Licensor or of Licensor s agents or employees with respect to the Licensed Area, the Center or
the business to be conducted thereat, and in no event shall Licensor be liable to Licensee for
any defect in the Licensed Area or for any limitation on its use (except to the extent of
Licensor s or Licensor's agents gross negligence or willful misconduct) and Licensee accepts
the same "AS IS WHERE IS
f) Signs and Decor All signage and decor to be placed on the exterior of
Licensed Area by Licensee shall be manufactured and displayed in accordance with the Sign
Criteria Program developed by Licensor, as the same may change from time to time
g) Grant of Nonexclusive Common Area Rights Licensor hereby grants
to Licensee its patrons, employees, and authorized representatives a nonexclusive right to use
the Common Area within the Center for vehicular parking and for pedestrian and vehicular
ingress, egress and travel and restroom access Licensor shall provide Licensee with two
dedicated parking spaces in the service yard at the nearest possible location to the Licensed
area or at a location mutually agreeable to both Licensor and Licensee
2
157
ARTICLE II
TERM
Section 2 1 The term of this Agreement herein granted shall commence as of
pAAe# do_ for a TEN (10) year term which shall expire on , unless
sooner extended or terminated as specifically provided herein
Section 2 2 Notwithstanding the foregoing, Licensee shall have the right to terminate
the term of this Agreement without any further obligations or liability hereunder upon not less
than thirty (30) days' prior written notice of such election Licensor shall have the right to
terminate the term of this Agreement without any further obligations or liability hereunder upon
not less than sixty (60) days' prior written notice of such election
Section 2 3 This Agreement may be extended at any time by mutual consent of the
parties subject to the terms herein
ARTICLE III
LICENSEE FEE
Section 3 1 There shall be no license fee associated with or required by this License
Agreement
ARTICLE IV
INSURANCE
Section 4 1 Insurance Licensee shall at all times during the term of this Agreement
and at its own cost and expense maintain, procure and continue in force commercial general
liability insurance for personal injury bodily injury (including wrongful death) and damage to
property with a combined single limit of not less than Two Million and No/100 Dollars
2,000,000 000) pei occurrence naming Licensor as an additional insured Certificates of
Insurance evidencing the required insurance coverage shall be delivered to Licensor prior to
Licensee's occupancy of the Licensed Area and thereafter executed copies of renewal policies or
certificates thereof shall be delivered to Licensor within thirty (30) days prior to the expiration of
the term of each such policy All policies on insurance delivered to Licensor must contain a
provision that the company writing the policy will give Licensor twenty (20) days notice in
writing in advance of any cancellation or lapse or the effective date of any reduction in the
amounts of insurance All policies shall be written as primary policies and shall provide that any
insurance which Licensor or Licensor s lender may carry is strictly excess, secondary and non-
contributing with any insurance carried by Licensee Licensee shall be permitted to carry the
insurance required in this Agreement under a blanket policy which also covers other locations of
the Licensee Notwithstanding the foregoing, the Licensee may provide liability insurance
through the Big Independent Cities Excess Pool ("BICEP"), providing for a self insured
retention in the amount applicable to all the members of BICEP (for calendar year 2006,
such self insured retention amount is $1,000,000 with the member cities risk sharing any
losses from S1,000,000 to $2,000,000 or larger)
158
Section 4 2 Indemnifications and Waivers
a) Indemnity To extent permitted by law, and except to the extent any
such damage loss, claim, liability, or expense is attributable to the gross negligence or willful
misconduct of Licensor its employees, authorized agents and representatives Licensee will at
Licensee s sole cost and expense indemnify Licensor Parties against all Claims arising from (i)
any Personal Injury, Bodily Injury or Property Damage whatsoever occurring in or at the
Licensed Area, (ii) any Bodily Injury to an employee of a Licensee Party arising out of and in
the course of employment of the employee and occurring anywhere in the Center (111) the use
or occupancy or manner of use of occupancy, or conduct or management of the Licensed Area
by Licensee
b) Waivers To the extent permitted by law, and except to the extent any
such damage, loss, claim liability, or expense is attributable to the gross negligence or willful
misconduct of Licensor, its employees, authorized agents and representatives, Licensee on
behalf of all Licensee Parties, waives all Claims against Licensor Parties arising from the
following (1) any Personal Injury, Bodily Injury or Property Damage whatsoever occurring in
or at the Licensed Area (ii) any loss of or damage to property of a Licensee Party located in the
Licensed Area or other part of the Center by theft or otherwise, (iii) any Personal Injury Bodily
Injury or Property Damage to any Licensee Party caused by other tenants of the Center parties
not occupying space in the Center, occupants of property adjacent to the Center, or the public or
by the construction of any private public or quasi -public work occurring either in the Licensed
Area or elsewhere in the Center (iv) any interruption or stoppage of any utility service or for
any damage to persons or property resulting from such stoppage, (v) business interruption or
loss of use of the Licensed Area suffered by Licensee (vi) any latent defect in construction of
the Center (vii) damages or injuries or interference with Licensee's business loss of occupancy
or quiet enjoyment and any other loss resulting from the exercise by Licensor of any right or the
performance by Licensor of Licensor's maintenance or other obligations under this Agreement
or (viii) any Bodily Injury to an employee of a Licensee Party arising out of and in the course of
employment of the employee and occurring anywhere in the Center
c) Licensor shall protect, defend, indemnify and hold harmless Licensee, its
officers officials, employees and agents from and against any and all liability loss damage
expenses, costs (including without limitation costs and fees of litigation of every nature) arising
out of or in connection with Licensor's performance of this Agreement or its failure to comply
with any of its obligations contained in this Agreement except such loss or damage which was
caused by the negligence or willful misconduct of the Licensee
d) Waivers of Subrogation Licensor and Licensee each hereby waive all
rights of recovery against the other on account of loss and damage occasioned to such waiving
party to the extent that such loss or damage is insured against under any insurance policies
carried by the waiving party Licensor and Licensee shall each cause their insurers to waive
their subrogation rights consistent with the foregoing
e) Definitions For purposes of this Paragraph 9 (1) the term `Licensee
Parties' means Licensee, and Licensee s officers members partners agents employees,
subLicensees, licensees, invitees and independent contractors and all persons and entities
4
159
03/ 07/2006 14 43 FAX 714 374 1580 CITY OF HUNT BEACH 2 002/002
claiming through any of these persons or entities, (it) the term "Licensor Parties" means
Licensor and the partners, venturerer, trustees and ancillary trustees of Licensor and the
respective officers, directors shareholders, members, parents, subsidiaries and any other
affiliated entities, personal representatives, executors, heirs, assigns licensees, invites,
beneficiaries, agents, servants employees and independent contractors of these persons or
entities, (in) the term "Indemnify" means indemnify, defend (with counsel reasonably
acceptable to Licensor) and hold free and harmless for, from and against, (iv) the term `Claims"
means all lnabUities, claims, damages (including consequential damages), losses, penalties,
litigation, demands, causes of action (whether in tort or contract, in law or at equity or
otherwise), swts proceedings, judgments, disbursements charges, assessments and expenses
including attorneys and experts' fees and expenses incurred in investigating defending, or
prosecuting any litigation, claim, or proceeding), (v) the term 'Waivers" means that the
Licensee Parties waive and knownngly and voluntarily assume the risk of and (va) the term
Bodily Injury", "Personal Injury and "Property Damage will have the same meanings as in
the form of commercial general insurance policy issued by Insurance Services Office, Inc most
recently prior to the date of the injury or loss in question
ARTICLE V
TAXES AND OTHER CHARGES
Section 51 Licensee shall pay and discharge when due and prior to the imposition of
any interest or penalty for delinquency in payment, all taxes, fees, or assessments imposed upon
the operation of the Licensee s use of the Licensed Area. Notwithstanding the foregoing,
Licensee shall not be obligated to pay any taxes, charges or assessments applicable to Licensor s
collection of the License Fee or with respect to Licensor s ownership of the Center
Section S 2 If requested by Licensor, Licensee shall fnraish to Licensor a receipt or
other evidence of the payment of each tax, assessment or imposition, or any such other charge
which is payable by Licensee within five (5) business days of such request
Section 53 Licensee shall provide for and maintain its own secure
telecommunications and data line equipment within the leased premises, and shall be responsible
for the cost of maintaining these designated utilities Licensee shall also provide for and
maintain a cleaning service for the leased premises, and shall be responsible for the cost of thus
service Licensor shall manitain and provide payment for all other utilities associated with the
leased premises, including but not limited to, electrical, gas, water, sewer and trash services and
shall pay all common arearamtenance costs (CAM costs) including taxes insurance and anagement
fees Licens r shall not pay any additional rent or CAM costs Licensee shall not responsible
for any utilities serving the Common Areas of the Property T13
S1.110to Section
5 4 Licensee shall, during the Term of this Agreement, keep the Licensed Area
in neat and clean condition subject to Licensor s obligations
160
claiming through any of these persons or entities, (ii) the term `Licensor Parties" means
Licensor and the partners venturerer trustees and ancillary trustees of Licensor and the
respective officers, directors shareholders, members, parents, subsidiaries and any other
affiliated entities, personal representatives executors, heirs assigns licensees, invites,
beneficiaries, agents, servants, employees and independent contractors of these persons or
entities, (w) the term `Indemnify means indemnify defend (with counsel reasonably
acceptable to Licensor) and hold free and harmless for from and against (iv) the term' Claims'
means all liabilities, claims damages (including consequential damages) losses, penalties,
litigation, demands, causes of action (whether in tort or contract, in law or at equity or
otherwise), suits, proceedings, judgments, disbursements, charges, assessments and expenses
including attorneys and experts' fees and expenses incurred in investigating, defending, or
prosecuting any litigation, claim, or proceeding), (v) the term "Waivers" means that the
Licensee Parties waive and knowingly and voluntarily assume the risk of and (vi) the term
Bodily Injury "Personal Injury" and 'Property Damage" will have the same meanings as in
the form of commercial general insurance policy issued by Insurance Services Office, Inc most
recently prior to the date of the injury or loss in question
ARTICLE V
TAXES AND OTHER CHARGES
Section 5 1 Licensee shall pay and discharge when due and prior to the imposition of
any interest or penalty for delinquency in payment all taxes, fees, or assessments imposed upon
the operation of the Licensee's use of the Licensed Area Notwithstanding the foregoing
Licensee shall not be obligated to pay any taxes charges or assessments applicable to Licensor's
collection of the License Fee or with respect to Licensor s ownership of the Center
Section 5 2 If requested by Licensor, Licensee shall furnish to Licensor a receipt or
other evidence of the payment of each tax, assessment or imposition, or any such other charge
which is payable by Licensee, within five (5) business days of such request
Section 5 3 Licensee shall provide for and maintain its own secure
telecommunications and data line equipment within the leased premises and shall be responsible
for the cost of maintaining these designated utilities Licensee shall also provide for and
maintain a cleaning service for the leased premises and shall be responsible for the cost of this
service Licensor shall maintain and provide payment for all other utilities associated with the
leased premises, including but not limited to, electrical gas, water, sewer and trash services, and
shall pay all common area maintenance costs (CAM costs) including taxes, insurance, and
management fees Licenser shall not pay any additional rent or CAM costs Licensee shall not
be responsible for any utilities serving the Common Areas of the Property
TLS-shloto
Section 5 4 Licensee shall during the Term of this Agreement, keep the Licensed
Area in neat and clean condition subject to Licensor s obligations
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ARTICLE VI
EVENTS OF DEFAULT AND REMEDIES ON DEFAULT
Section 6 1 Any of the following occurrences or acts shall constitute an `Event of
Default under this Agreement
a) If Licensee shall
i) default in making payment when due of the License Fee and such
default shall continue twenty (20) business days of notice of non payment (but notwithstanding,
no notice or 20 day cure period shall apply more than one time during the term of this
Agreement), or
it) default in making payment when due of any other amount payable
by Licensee hereunder and such default shall continue twenty (20) business days of notice of
non payment (but notwithstanding no notice or 20 day cure period shall apply more than one
time during the term of this Agreement), or
m) default in the observance or performance of anv other provision of
this Agreement to be observed or performed by Licensee hereunder or
b) The suspension revocation or expiration of any of the Licensee's
licenses required to conduct its business at the Licensed Area, of
c) Licensee shall file a petition in bankruptcy or for reorganization or for an
arrangement pursuant to the Bankruptcy Act or under any similar federal or state law now or
hereafter in effect, or shall be adjudicated a bankrupt or become insolvent, of shall make an
assignment for the benefit of its creditors, or shall admit in writing of its inability to pay its
debts as they become due, or shall be dissolved or shall suspend payment of its obligations, or
shall take any corporate action for the purpose of effecting any of the foregoing
Section 6 2 Except with respect to Section 6 1(a)(1) and 6 1(a)(ii), whenever an Event
of Default shall have occurred Licensor may, at its election, in its sole discretion, terminate this
License upon ten (10) business days written notice to Licensee whereupon all rights of Licensee
to the use of the Licensed Area shall forthwith terminate as though this License had never been
made, and Licensor shall have the immediate right of possession of the Licensed Area and the
right to remove all persons and property therefrom without liability to the Licensee whatsoever,
and in addition shall have the right to recover forthwith from the Licensee any and all License
Fees and all other amounts payable by Licensee hereunder which have become due as of the date
the termination of this License Notwithstanding the foregoing, no Event of Default shall deem
to have occurred if Licensee cures said Default prior to the expiration of the twenty (20) day
notice period In the event of a Default under Section 6 1(a)(1) or 6 1(a)(ii), after the applicable
cure period Licensor may, at its election in its sole discretion terminate this License with no
further notice required to Licensee whereupon all rights of Licensee to the use of the Licensed
Area shall forthwith terminate as though this License had never been made and Licensor shall
have the immediate right of possession of the Licensed Area and the right to remove all persons
and property therefrom without liability to the Licensee whatsoever and in addition shall have
the right to recover forthwith from the Licensee any and all License Fees and all other amounts
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162
payable by Licensee hereunder which have become due as of the date the termination of this
License
Section 6 3 The failure of the Licensor to insist upon a strict performance of any term
or condition of this Agreement shall not be deemed a waiver of any right or remedy that the
Licensor may have and shall not be deemed a waiver of any subsequent breach of such term or
condition
ARTICLE VII
DAMAGE OR DESTRUCTION OF THE CENTER / EMINENT DOMAIN
In the event of (material) damage to or destruction of the Center or to the Licensed Area,
or in the event any (material) portion of the Center or Licensed Area shall be lawfully taken or
condemned, either Licensee or Licensor shall have the right to terminate this Agreement as of
the date of the damage or destruction or as of the taking (as the case may be) and upon such
termination all License Fees shall be prorated and neither party shall thereafter have any rights
or obligations thereafter accruing under this Agreement Licensee shall have no obligation with
respect to any damage or destruction to the Licensed Area of the Center due to any casualty
ARTICLE VIII
ASSIGNMENT
Section S 1 Licensee shall not assign this Agreement or any interest therein and shall
not sublicense the Licensed Area or any part thereof without the prior written consent of
Licensor at Licensor s sole and absolute discretion
ARTICLE IX
BINDING EFFECT, MERGER AND CONSOLIDATION, ENTIRE AGREEMENT
Section 9 1 All the terms and provision contained in this Agreement shall be binding
upon inure to the benefit of and be enforceable by, the successors and assigns of Licensor to the
same extent as if each such successor or assign were named as part of this Agreement
Section 9 2 This Agreement embodies the entire agreement between Licensor and
Licensee relating to the subject matter hereof and supersedes all prior agreements and
understandings relating to such subject matter Neither this Agreement nor any provision hereof
may be amended, modified, waived discharged or terminated orally but only as expressly
provided herein or by an instrument signed by Licensor and Licensee
Section 9 3 As used in this Agreement and whenever required by the context thereof,
each number both singular and plural shall include all numbers and each gender shall include
all genders Licensor and Licensee as used in this Agreement or in any other instrument referred
to in or made a part of this Agreement shall likewise include both the singular and the plural, a
corporation co partnership, individual or person acting in any fiduciary capacity as executor,
administrator trustee or in any other representative capacity All covenants herein contained on
the part of Licensor and Licensee shall be joint and several The language of all parts of this
Agreement shall in all cases be construed as a whole according to its fair meaning, and not
strictly for or against any of the pasties If any provision of this Agreement is held by an
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arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such
holding shall not invalidate or affect the remaining covenants and provisions of this Agreement
No covenant or provision shall be deemed dependent upon any other unless so expressly
provided here Nothing contained herein shall be construed so as to require the commission of
any act contrary to law, and wherever there is any conflict between any provision contained
herein and any present or future statute law, ordinance or regulation contrary to which the
parties have no right to contract, then the latter shall prevail, and the provision of this Agreement
which is hereby affected shall be curtailed and limited only to the extent necessary to bring it
within the requirements of the law
ARTICLE X
NOTICES
Section 10 1 All Notices must be in writing and shall be deemed to have been properly
given or served by depositing in the United States Mail, postpaid and registered or certified
return receipt requested, or sent by overnight delivery service, and addressed to the addresses set
forth below All Notices shall be effective upon being deposited in the United States Mail
However, the time period in which a response to any Notice must be given, if any, shall
commence to run from the date of receipt of the Notice by the addressee thereof Rejection or
other refusal to accept or the inability to deliver because of a changed address of which no
Notice was given shall be deemed to be receipt of the Notice sent By giving at least five (5)
days Notice thereof either party shall have the right to specify as its address any other address
within the United States of America
Licensor s Address Bella Terra Associates, LLC
c/o DJM Capital Partners
60 S Market Street, Suite 1120
San Jose, CA 95113 a36
408-271-0366
408-271 0377 — Fax
Tax ID# 20-2921485
Licensee's Address City of Huntington Beach
ATTN Chief of Police
2000 Main Street P O Box 190
Huntington Beach CA 92648
With copy to City of Huntington Beach
Real Estate Services
ATTN Steve Holtz
2000 Main Street
Huntington Beach, CA 92648
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ARTICLE XI
CONTROVERSY
Section 111 Any controversy arising under this Agreement which is not resolved by
the parties hereto shall be determined in and by the courts of the Sate of California, in
accordance with the laws of the State of California
ARTICLE XII
COMPLIANCE
Section 12 1 Licensee agrees at its own cost and expense to promptly execute and
comply with all present or future rules, regulations, requirements laws and ordinances of all
governmental authorities having jurisdiction of the Licensed Area or the business of Licensee
thereat, and to obtain all licenses and/or permits required to conduct the business of Licensee at
the Licensed Area Notwithstanding the foregoing, Licensor shall not be responsible for any
alterations or additions to the Licensed Area required by applicable laws and/or ordinances
ARTICLE XIII
MISCELLANEOUS
Section 13 1 Nothing contained herein nor this Agreement shall be construed nor is it
the intent of the parties to create a joint venture or partnership between Licensor and Licensee
Section 13 2 This Agreement is not to be recorded If this provision is breached any
such recording shall be deemed null and void
Section 13 3 If any provision of this Agreement or the application thereof to any person
or in any circumstances shall be determined to be invalid, unlawful or unenforceable to any
extent, then the remainder of this Agreement, and the application of such provisions other than
the ones deemed invalid unenforceable or unlawful shall not be affected thereby and each
remaining provision hereof shall continue to be valid and may be enforced to the fullest extent
permitted by law
Section 13 4 Nondiscrimination Licensee covenants by and for itself, its successors
and assigns, and all persons claiming under or through it and this Agreement is made and
accepted upon and subject to the following conditions That there shall be no discrimination
against or segregation of any person or group of persons on account of sex marital status, race,
color religion creed, national origin or ancestry, in the leasing, subleasing, transferring, use, or
enjoyment of the Property nor shall Licensee itself, or any person claiming under or through it
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection location number use or occupancy of tenants Licensees, subLicensees,
subtenants or vendees in the Center
Section 13 5 Holding Over If Licensee continues to occupy the Licensed Area
following the expiration or termination of this Agreement, such holding over shall constitute
renewal of this License on a month to month basis, with License Fee payable for each month
equal to 125% of the License Fee payable during the original term The License Term may
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165
thereafter be terminable by either party upon one month s notice and otherwise on the terms of
this Agreement
Section 13 6 Authority Each signatory to this Agreement represents and warrants
that (i) he or she is duly authorized to execute and deliver this Agreement on behalf of such
entity in accordance with its corporate bylaws statement of partnership or certificate of limited
partnership as the case may be, (n) this Agreement is binding upon said entity in accordance
with its terms and (ui) the entity is a duly organized and legally existing corporation or
partnership in good standing in the State of California
Section 13 7 Attorneys' Fees In the event that any action shall be instituted by either
of the parties to this Agreement (or their successors) for the enforcement of any of their rights in
and under this Agreement, each party shall bear its own attorney's fees, such that the prevailing
party shall not be entitled to recover its attorney's fees from the non prevailing party
Section 13 S Conference Room Licensee and Licensor agree to share the
Conference Room adjacent to the Licensed Area, and identified on Exhibit A on a first come
first served basis pursuant to rules and procedures reasonably determined by Licensor This
conference room shall not house any City of Huntington Beach Police Department
telecommunications equipment
Section 13 9 Brokers Each party warrants to and for the benefit of the other that it
has engaged no broker of finder and that no claims for brokerage commissions or finder's fees
will arise in connection with the execution of this Agreement and each of the parties agrees to
indemnify the other against, hold it harmless from all liabilities arising from any such claim
including, without limitation, the cost of attorney s fees in connection therewith)
Section 13 10 Legal Services Subcontracting Prohibited Licensor and Licensee
agree that Licensee is not liable for payment of any subcontractor work involving legal services
and that such legal services are expressly outside the scope of services contemplated hereunder
Licensor understands that pursuant to Huntington Beach City Charter Section 309, the City
Attorney is the exclusive legal counsel for Licensee, and Licensee shall not be liable for payment
of any legal services expenses incurred by Licensor
Section 13 11 Duplicate Original The original of this Agreement and one or more
copies hereto have been prepared and signed in counterparts as duplicate originals, each of which
so executed shall irrespective of the date of its execution and delivery be deemed an original
Each duplicate original shall be deemed an original instrument as against any party who signed
it
ARTICLE XIV
SUBORDINATION
This Agreement shall be subject and subordinate at all times to the lien of any mortgage,
which may now or hereafter affect the Licensed Area Licensee will execute and deliver any
instrument which may be required by Licensor in confirmation of such subordination promptly
upon the request of the Licensor If the Licensee shall fail at any time to execute, acknowledge
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166
and deliver any such instrument Licensor in addition to any other remedies available to it may
execute acknowledge and deliver the same as attorney in -fact of the Licensee and in the
Licensee's name place and stead, and the Licensee hereby irrevocably makes, constitutes and
appoints Licensor its successor and assigns, such attorney in -fact for that purpose
ARTICLE XV
ALTERATIONS AND ADDITIONS
Section 15 1 Licensee shall obtain Licensors prior written consent for alterations
improvements additions, utility installations or repairs in on or about the Licensed Area, or the
Center which are (i) structural in nature, or (u) non-structural in nature and exceed a total cost of
Five Thousand Dollars ($5,000 00) per alteration/addition Licensor may give or withhold its
consent to any structural alterations, improvements, additions Utility Installations or repairs in
its sole and absolute discretion As used in this Section 15 1 the term "Utility Installation" shall
mean carpeting, window and wall coverings, power panels, electrical distribution systems
lighting fixtures air conditioning, plumbing, and telephone and telecommunication wiring and
equipment Licensor may require Licensee to remove said alterations, improvements, additions
or Utility Installations at the expiration of the term to restore the Licensed Area and the Center
to their prior condition at Licensee's expense Should Licensor permit Licensee to make its own
alterations, improvements additions, or Utility Installations Licensee shall use only such
contractor as has been expressly approved by Licensor Should Licensee make any alterations
improvements, additions or Utility Installations without the prior approval of Licensor or use a
contractor not expressly approved by Licensor, Licensor may, at any time during the term of the
Lease, require that Licensee remove any part or all of the same
Section 15 2 Any alterations, improvements, additions or Utility Installations in or about
the Licensed Area or the Center that Licensee shall desire to make which are (i) structural in
nature, or (ii) non-structural in nature and exceed a total cost of Five Thousand Dollars
5,000 00) per alteration/addition shall be presented to Licensor in written form, with proposed
detailed plans Licensee shall reimburse Licensor as additional rent for Licensor's actual costs
in reviewing any proposed plans whether or not Licensor s consent thereto is given If Licensor
shall give its consent to Licensee's making such alteration improvement, addition or Utility
Installation, the consent shall be deemed conditioned upon Licensee acquiring a permit to do so
from the applicable government agencies furnishing a copy thereof to Licensor prior to the
commencement of the work, and compliance by Licensee with all conditions of said permit in a
prompt and expeditious manner Licensors approval of plans, specifications and working
drawings for Licensee s alterations improvements, additions or Utility Installations shall create
no responsibility or liability on the part of Licensor for their completeness, design, sufficiency
or compliance with all laws, rules and regulations of governmental agencies or authorities
Section 15 3 Licensee shall pay when due, all claims for labor or materials furnished or
alleged to have been furnished to or for Licensee at or for use in the Licensed Area which claims
are or may be secured by any mechanic's or materialmen s lien against the Licensed Area the or
the Centert or any interest therein
Section 15 4 Licensee shall give Licensor not less than ten (10) days notice prior to the
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167
commencement of any work in the Licensed Area by Licensee, and Licensoi shall have the right
to post notices of non -responsibility in or on the Licensed Area or the Center as provided by law
If Licensee shall, in good faith contest the validity of any such lien claim or demand, then
Licensee shall at its sole expense, defend itself and Licensor against the same and shall pay and
satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof
against Licensor or the Licensed Area, or the Center, upon the condition that if Licensor shall
require Licensee shall furnish to Licensor a surety bond satisfactory to Licensor in an amount
equal to such contested lien or claim or demand indemnifying Licensor against liability for the
same and holding the Licensed Area and the Center free from the effect of such lien or claim In
addition, Licensor may require Licensee to pay Licensor's reasonable attorneys' fees and costs in
participating in such action if Licensor shall decide it is to Licensor's best interest to do so
Section 15 5 All alterations, improvements, additions and Utility Installations, which
may be made to the Licensed Area by Licensee including but not limited to, floor coverings
paneling doors, drapes, built-ins, moldings sound attenuation, and lighting and telephone or
communication systems conduit, wiring and outlets, shall be made and done in a good
workmanlike manner and of good and sufficient quality and materials and shall be the property
of Licensor and remain upon and be surrendered with the Licensed Area at the expiration of the
Lease term, unless Licensor requires their removal pursuant to Section 15 1 Provided Licensee
is not in default notwithstanding the piovrsrons of this Section 15 5 Licensee s personal
property and equipment, other than that which is affixed to the Licensed Area so that it cannot be
removed without material damage to the Licensed Area or the Center, and other than Utility
Installations, shall remain the property of Licensee and may be removed by Licensee subject to
the provisions of Section 1 2
Section 15 6 Licensee shall provide Licensor with as -built plans and specifications for
any alterations, improvements, additions or Utility Installations
ARTICLE XVI
SECURITY DEPOSIT AND TERMINATION
Section 16 1— Licensor and Licensee agree there shall be no security deposit associated
with or required by this Agreement
Section 16 2 — Upon termination of this License for any reason whatsoever, Licensee
shall restore the Licensed Area to its condition immediately preceding the term of this License
ARTICLE XVII
COMPLIANCE WITH OWNER PARTICIPATION AGREEMENT (OPA)
Licensee hereby acknowledges and agrees to be bound by, Sections 501-505 of the OPA
By and Between the Redevelopment Agency of the City of Huntington Beach and Huntington
Center Associates LLC, as well as the agreement containing covenants affecting real property
filed with the Orange County Clerk Recorder s office as Document No 2005-000643199
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168
ARTICLE XVIII
LICENSEE'S CONTRACT ADMINISTRATOR
Licensee s Director of Economic Development, or his / her designee, shall be Licensee s
Contract Administrator for this Agreement with the authority to act on behalf of Licensee for the
purposes of this Agreement, and all Licensee approvals and notices required to be given herem to
Licensee shall be so directed and addressed
IN WITNESS WHEREOF the parties have cause the proper execution of this Agreement
as of the date set forth above
LICENSOR
BELLA TERRA ASSOCIATES LLC,
a Delaware limited liability company
By 2L=:,
Its V ( c e )gLet c (L y--T
Date 3-7-06
LICENSEE
City of Huntington Beach a- municipal f
corporation of the State of California.,
Mayor
0400ejoor \°
City Clerk a
APP ED AS TO FORM
V
nV ,^
City
Attey -TL, 318 ate d INITIATED AND
APPROVED 7 Director
of
Economi Development REVIEWED AND
APPROVED 13
169
fity Admi istrator
14
170
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15
171
Site Map
ATTACHMENT #2
172
Site Map
Bella Terra Police Substation
7777 Edinger Avenue, Suite D-135
173
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-364 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Dahle Bulosan, Chief Financial Officer
PREPARED BY:Zack Zithisakthanakul, Principal Finance Analyst
Subject:
Approve and authorize execution of a three-year Professional Service Contract with Davis
Farr LLP in the amount of $156,076 to perform financial audit services
Statement of Issue:
City Council approval is requested to approve and authorize a three-year professional services
contract with Davis Farr LLP in the amount of $156,076 to perform financial audit services.
Financial Impact:
Sufficient appropriation is budgeted annually for audit services. The total three-year contract equals
$156,076. Year one (Fiscal Year 2021/22) of the contract is allocated as follows: General Fund
Finance Department ($46,040 in business unit 10035205) and West Orange County Water Board
Fund ($5,500 in business unit 50885101). Fiscal Years 2022/23 ($51,540) and 2023/24 ($52,996) will
be budgeted accordingly to cover the cost of year two and three of the audit services contract.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract
Between the City of Huntington Beach and Davis Farr LLP for Financial Audit Services.”
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
The City of Huntington Beach is required by Charter Section 616 to arrange for an independent audit
of its financial statements each year. This contract is for a financial audit of all funds of the City’s
reporting entity, a Single Audit Report of the City’s federal grant programs, an AB 2766 Audit relating
to the City’s Air Quality Fund, and an audit of the West Orange County Water Board (WOCWB), a
fiduciary fund of the City of Huntington Beach. The City Council will also receive a management
letter that will detail recommendations to improve the City’s control and financial management. The
audit is to be performed with auditing standards generally accepted in the United States and
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File #:22-364 MEETING DATE:5/3/2022
audit is to be performed with auditing standards generally accepted in the United States and
Government Auditing Standards issued by the Comptroller of the United States.
Staff issued Request for Proposals (RFPs) for audit services to prospective independent auditors
who had requested to be on a bidders’ list or were listed on the California Society of Municipal
Officers’ website. In addition, the RFP was posted on the City’s website. Five proposals were
received. The auditing firms were asked to submit cost proposals providing financial audit services
for Fiscal Years ending June 30, 2022, 2023, and 2024.
Below is a summary of the total base fee for the three years:
Audit Firms Year 1 Year 2 Year 3 Total*
Badawi & Associates Certified Public Accountants 45,425 46,780 48,215 140,420$
Davis Farr, LLP 51,540 51,540 52,996 156,076$
Moss, Levy & Hartzheim, LLP 46,495 46,845 47,195 140,535$
The Pun Group, LLP 58,000 59,500 61,045 178,545$
Vasquez & Company, LLP 49,500 50,985 52,514 152,999$
* Cost proposals include the audit of four major federal grant programs with the exception of Badawi & Associates CPAs, which includes only two major
programs.
The following is a summary of Davis Farr’s cost proposal and the accounts in which the amounts are
proposed to be charged:
Account Year 1 Year 2 Year 3 Total*
Finance Department (10035205.69365)46,040 46,040 47,331 139,411$
West Orange County Water Board (50885101.69345)5,500 5,500 5,665 16,665$
Total 51,540 51,540 52,996 156,076$
Staff analyzed and reviewed all five proposals based on a variety of factors,including the firm’s
references, responsiveness to the RFP, qualifications in performing audits for governmental entities
of similar size and scope, other relevant experience, and resumes of key staff to be assigned on the
engagement. Staff is recommending Davis Farr LLP as the most qualified firm to perform auditing
services for the City of Huntington Beach given the size and complexity of the City’s finances
including its enterprise funds and operations, fiduciary activities, federal grants and related programs,
outstanding bond debt, and overall financial structure.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Professional Service Agreement with Davis Farr LLP to perform an audit of all funds of the
City’s reporting entity.
2. Rating Sheet
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File #:22-364 MEETING DATE:5/3/2022
City of Huntington Beach Printed on 4/27/2022Page 3 of 3
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DA VIS FARR LLP
FOR
FINANCIAL AUDIT SERVICES
THIS AGREEMENT ("Agreement") is made and entered into by and between the City of
Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as
"CITY," and Davis Farr LLP, a California Limited Liability Partnership, hereinafter referred to as
"CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to provide financial audit
services; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of the
Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service
contracts have been complied with; and
CONSULT ANT has been selected to perform these services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. SCOPE OF SERVICES
CONSULTANT shall provide all services as described in Exhibit "A," which is
attached hereto and incorporated into this Agreement by this reference. These services shall
sometimes hereinafter be referred to as the "PROJECT."
CONSULTANT hereby designates Jennifer Farr who shall represent it and be its
sole contact and agent in all consultations with CITY during the performance of this Agreement.
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this Agreement.
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3. TERM; TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULT ANT are to
commence on _________ , 20 __ (the "Commencement Date"). This Agreement
shall automatically terminate three (3) years from the Commencement Date, unless extended or
sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no
later than three (3) years from the Commencement Date. The time for performance of the tasks
identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be
amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT.
In the event the Commencement Date precedes the Effective Date, CONSULTANT
shall be bound by all terms and conditions as provided herein.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY agrees to
pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is
attached hereto and incorporated by reference into this Agreement, a fee, including all costs and
expenses, not to exceed One Hundred Fifty Six Thousand Seventy Six Dollars ($156,076).
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A" or
changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such
work only after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
CONSULT ANT shall be paid pursuant to the terms of Exhibit "B."
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7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that title to all materials prepared hereunder, including,
without limitation, all original drawings, designs, reports, both field and office notices, calculations,
computer code, language, data or programs, maps, memoranda, letters and other documents, shall
belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or
termination of this Agreement or upon PROJECT completion, whichever shall occur first. These
materials may be used by CITY as it sees fit.
8. HOLD HARMLESS
CONSULT ANT hereby agrees to protect, defend, indemnify and hold harmless
CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against
any and all claims, damages, losses, expenses, judgments, demands and defense costs (including,
without limitation, costs and fees of litigation of every nature or liability of any kind or nature)
arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any)
negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of
its obligations contained in this ,A,greement by CONSUL TANT, its officers, agents or employees
except such loss or damage which was caused by the sole negligence or willfol misconduct of
CITY. The only limitations on this provision shall be those imposed by AICPA Code of
Professional Conduct ET Section 1.228.020; i.e., loss or damage which was caused by the sole
negligence or willful misconduct of the City. CONSULTANT will conduct all defense at its sole
cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity
shall apply to all claims and liability regardless of whether any insurance policies are applicable.
The policy limits do not act as limitation upon the amount of indemnification to be provided by
CONSULT ANT.
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9.. PROFESSIONAL LIABILITY INSURANCE
CONSULT ANT shall obtain and furnish to CITY a professional liability insurance
policy covering the work performed by it hereunder. This policy shall provide coverage for
CONSULTANT's professional liability in an amount not less than One Million Dollars
($1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not
contain a self-insured retention without the express written consent of CITY; however an insurance
policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made
policy shall be acceptable ifthe policy further provides that:
A. The policy retroactive date coincides with or precedes the initiation of the
scope of work (including subsequent policies purchased as renewals or
replacements).
B. CONSULT ANT shall notify CITY of circumstances or incidents that might
give rise to future claims.
CONSULT ANT will make every effort to maintain similar insurance during the
required extended period of coverage following PROJECT completion. If insurance is terminated
for any reason, CONSUL TANT agrees to purchase an extended reporting provision of at least two
(2) years to report claims arising from work performed in connection with this Agreement.
If CONSULTANT fails or refuses to produce or maintain the insurance required by
this section or fails or refuses to furnish the CITY with required proof that insurance has been
procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to
forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid
for its time and materials expended prior to notification of termination. CONSULTANT waives the
right to receive compensation and agrees to indemnify the CITY for any work performed prior to
approval of insurance by the CITY.
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10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT shall
furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverage as required by this Agreement; the certificate shall:
A. provide the name and policy number of each carrier and policy;
B. state that the policy is currently in force; and
C. shall promise that such policy shall not be suspended, voided or canceled by
either party, reduced in coverage or in limits except after thirty (30) days'
prior written notice; however, ten (I 0) days' prior written notice in the event
of cancellation for nonpayment of premium.
CONSULT ANT shall maintain the foregoing insurance coverage in force until the
work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverage shall not derogate
from CONSULT ANT's defense, hold harmless and indemnification obligations as set forth in this
Agreement. CITY or its representative shall at all times have the right to demand the original or a
copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the
premiums on the insurance hereinabove required.
11. INDEPENDENT CONTRACTOR
CONSULT ANT is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor herein and not as an employee of CITY. CONSUL TANT
shall secure at its own cost and expense, and be responsible for any and all payment of all taxes,
social security, state disability insurance compensation, unemployment compensation and other
payroll deductions for CONSULTANT and its officers, agents and employees and all business
licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder.
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12. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike manner.
CITY may terminate CONSULT ANT's services hereunder at any time with or without cause, and
whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall
be made in writing, notice of which shall be delivered to CONSULT ANT as provided herein. In the
event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at
the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT.
13. ASSIGNMENT AND DELEGATION
This Agreement is a personal service contract and the work hereunder shall not be
assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the
prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all
approved assignees, delegates and subconsultants must satisfy the insurance requirements as set
forth in Sections 9 and 10 hereinabove.
14. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
15. CITY EMPLOYEES AND OFFICIALS
CONSULT ANT shall employ no CITY official nor any regular CITY employee in
the work performed pursuant to this Agreement. No officer or employee of CITY shall have any
financial interest in this Agreement in violation of the applicable provisions of the California
Government Code.
16. NOTICES
Any notices, certificates, or other communications hereunder shall be given either by
personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as
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the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and
depositing the same in the United States Postal Service, to the addresses specified below. CITY and
CONSUL TANT may designate different addresses to which subsequent notices, certificates or
other communications will be sent by notifying the other party via personal delivery, a reputable
overnight carrier or U. S. certified mail-return receipt requested:
TO CITY:
City of Huntington Beach
ATTN: Dahle Bulosan
2000 Main Street
Huntington Beach, CA 92648
17. CONSENT
TO CONSULT ANT:
Davis Farr LLP
Jennifer Farr
2301 Dupont Drive, Suite 200
Irvine, CA 92612
When CITY's consent/approval 1s required under this Agreement, its
consent/approval for one transaction or event shall not be deemed to be a consent/approval to any
subsequent occurrence of the same or any other transaction or event.
18. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duly executed by both parties.
19. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive phrases
at the beginning of the various sections in this Agreement are merely descriptive and are included
solely for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Agreement.
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20. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining
covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other whenever the
context so indicates or requires. Nothing contained herein shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
21. DUPLIC/<.TE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the
date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed
an original instrument as against any party who has signed it.
22. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
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23. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside the
scope of services contemplated hereunder. CONSULT ANT understands that pursuant to
Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for
CITY; and CITY shall not be liable for payment of any legal services expenses incurred by
CONSULTANT.
24. ATTORNEY'S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the
terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear
its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's
fees from the non prevailing party.
25. SURVIVAL
Terms and conditions of this Agreement, which by their sense and context survive
the expiration or termination of this Agreement, shall so survive.
26. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the
State of California.
27. SIGNATORIES
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this Agreement,
and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
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28. ENTIRETY
The parties acknowledge and agree that they are entering into this Agreement freely
and voluntarily following extensive arm's length negotiation, and that each has had the opportunity
to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and
agree that no representations, inducements, promises, agreements or warranties, oral or otherwise,
have been made by that party or anyone acting on that party's behalf, which are not embodied in this
Agreement, and that that party has not executed this Agreement in reliance on any representation,
inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this
Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the
parties respecting the subject matter of this Agreement, and supersede all prior understandings and
agreements whether oral or in writing between the parties respecting the subject matter hereof.
29. EFFECTIVE DATE
This Agreement shall be effective on the date of its approval by the City Council.
This Agreement shall expire when terminated as provided herein.
IN WI1NESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their authorized officers.
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CONSULTANT,
Davis Farr LLP
By: ____________ _
print name
ITS: (circle one) Chairman/PresidentNice President
AND
By: ______________ _
print name
ITS: (circle one) Secretary/Chief Financial Officer/Asst.
Secretary -T reasurer
22-11205/280945
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
Mayor
City Clerk
INITIATED AND APPROVED:
REVIEWED AND APPROVED:
City Manager
APPROVED AS TO FORM:
City Attorne y IJ.;}
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188
EXHIBIT "A"
A. STATEMENT OF WORK: (Narrative of work to be performed)
• Will perform an audit examination of the financial statements of the City of Huntington
Beach and West Orange County Water Board for the fiscal years ending June 30, 2022
through 2025. Our examination will be conducted in accordance with generally accepted
auditing standards, the AICP A Audit and Accounting Guide, Audits of State and Local
Government Units, and the Government Auditing Standards issued by the Comptroller
General of the United States. We will ensure that the report is prepared in conformity with
the most recent edition of the GAAFR, the GAAFR Update, and subsequent GASB
pronouncements.
• When necessary, we will perform a compliance audit of federal expenditures in accordance
with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards in any year the City has federal expenditures of more than $750,000.
• Will perform agreed-upon-procedures over the City's Gann Appropriations Limit.
• Will issue the AB 2766 Audit Report over the AQMD fund
• Will prepare a letter to the City Council summarizing the audit results in accordance with
the Codification of Auditing Standards Section 260.
• Will prepare a letter to the City Council reporting matters dealing with internal control that
meet the threshold of being a significant deficiency or material weakness, as defined by the
Codification of Auditing Standards Section 265. We will immediately report any
irregularities or illegal acts that come to our attention to management and/or those charged
with governance.
• Will meet with the City Council to discuss the results of the audit.
• Finally, we perceive the scope of our work as being advisors to the City regarding generally
accepted accounting principles. Throughout the year, the management and other finance
personnel of the City will have access to us to seek advice in the application of generally
accepted accounting principles, advice regarding debt issuance, financial statement
preparation and content, tax and any other matters relating to the City. Each year, we will go
over upcoming accounting standards in a meeting with City staff.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
Consultant plans and conducts engagements in the most efficient manner possible, and consultant's
audit approach is unique with regard to the following:
• Consultant firm is sensitive to the priorities and work requirements of our clients. Consultant
will work around the schedules of clients when scheduling segments of the audit or
requesting documentation in order to minimize disruption of City staff and to complete the
audit in a timely manner.
• Whenever possible, Consultant will use accounting support already prepared by the City
staff in order to avoid duplication or unnecessary requests for audit supporting schedules.
• Consultant firm's expertise is in governmental auditing. Consultant's auditors are GASB
experts and skilled at addressing audit issues that are specific to local governments. You will
not spend time training our personnel.
EXHIBIT A
189
• When formulating internal control recommendations, Consultant will obtain a thorough
understanding of the specific circumstances at your City in order to provide a tailored,
practical recommendation.
• Throughout the year Consultant is a resource to our clients in providing accounting advice,
researching technical questions, dealing with tax problems, and helping with other problems
as they arise.
Audit Software -Consultant utilizes Caseware audit software for the electronic City of
workpapers. Consultant has the ability to accept audit documentation in either hard copy or
electronic format. Caseware allows Consultant the ability to import trial balances that can be
provided in either excel or a text document.
Data Mining Software -We have a dedicated team of personnel trained to use special data mining
software, IDEA. Our software uses source data from your accounting system to search for
anomalies, such as duplicate or voided checks, cross-referencing vendor addresses with employee
addresses, detecting accounting transactions recorded on the weekend, reviewing journal entry
postings for unauthorized individuals. The IDEA software identifies specific
transactions for the auditors to review for potential fraud or error.
Internal Control Evaluation
Consultant's approach to evaluating internal controls involves observation and inquiry. Consultant
spend time with the personnel responsible for the accounting cycles to gain an understanding of the
processes. Consultant also carefully evaluate your policies and procedures. After our initial
evaluation, Consultant identify key controls in City processes and design test to evaluate the
effectiveness of those processes. In the initial year of the audit, Consultant will focus on the
following accounting cycles:
• Billing and cash receipting
• Capital assets
• Purchase and disbursements
• Payroll
• Investment and cash controls
• Information systems
In future years, Consultant will review the accounting cycles noted above but also look at other
processes such as credit card transactions, petty cash, inventory controls, offsite cash receipting,
employee reimbursements, contract compliance, and other areas. Consultant's goal is to modify our
audit approach every year to further evaluate the City's internal controls.
Planning and Inquiry
During the planning phase of the audit, Consultant plans to perform the following procedures:
• Meet with finance personnel to obtain an understanding of significant transactions during
the year
• Communicate with the City Council in regards to fraud, compliance with laws, and any
concerns they have regarding the finances of the City
• Perform internal control evaluations as noted on the previous page
• Determine materiality levels that will be used in selecting audit transactions
EXHIBIT A
190
• Perform a risk assessment to develop the audit plan for the year
• Review minutes of City Council meetings
• Review important new contracts, bond documents, and agreements
• Evaluate compliance with investments
• Test purchase orders and contract management
• Test a sample of cash disbursements to determine adherence to policies and internal controls
• Perform a review of the organizations information systems and controls
• Perform compliance testing of federal grants, as necessary
• Review the prior audited financial statements and provide feedback to City staff regarding
best practices for financial reporting
• Provide a GASB Update and templates for implementing new accounting standards
including the pension and OPEB standards.
Year-End Testing
After the books are closed and ready for audit, Consultant will perform year-end procedures which
include the following:
• Confirm I 00% of all cash and investment balances and test market values provided by your
investment custodians.
• Test for proper cutoffs of accounts receivable and grants receivable.
• Confirm and test material notes and loans receivable.
• Test additions and deletions to capital assets. We will review depreciation expense for
reasonableness.
• Test inter-fund transactions including due to/due from other funds, advances, and transfers.
We will review legal documents supporting loans and test the allowability of transfers out of
restricted funds.
• Test current liabilities and perform a search for unrecorded liabilities.
• Review unearned revenue balances for proper cutoffs.
e Test the balances of accrued payroll and employee related liabilities.
• Confirm long-term debt with independent parties.
• In years of new debt issuances, will review the journal entry to record the debt to ensure the
accuracy of the accounting.
• Testing of actuarial valuations and calculations related to OPEB obligations and disclosures
under GASB 75.
• Testing of actuarial valuations and calculations related to pension obligations and new
disclosures under GASB 68.
• Evaluation of claims and judgments payable.
• Testing of restrictions and classifications of net position.
• Analyze grant revenues and expenses to ensure proper matching within the fiscal year.
• Test the reasonableness of interest income, realized, and umealized gains/losses on
investments.
• Analytically and substantively test revenues and expenses reported in the financial
statements.
• Incorporate an element of unpredictability every year that will focus on an audit area that is
not typically considered a high or significant risk area such as petty cash, credit card
purchases, new vendors, travel expenses, etc.
EXHIBIT A
191
The aforementioned tests are only a few of the tests performed during the examination and by no
means is it meant to be all inclusive. During the final stage of the audit Consultant will meet with
Finance staff to review any audit findings and adjusting journal entries.
Single Audit Approach
As part of the Consultant's Single Audit for the years in which the City expends granter than
$750,000, Consultant will perform the following procedures in accordance with the Uniform
Guidance:
• Perform an evaluation of the major programs required to be tested
• Review OMB guidance and the OMB Compliance Supplement for the grant program
audited.
• Review internal controls for each of the applicable 14 compliance areas for each program
audited.
• Using AICP A sampling guidance, Consultant will select a sample for each of the applicable
14 compliance areas for each program audited. Consultant will test the sample for
compliance with those 14 areas.
• Test the indirect cost rate, if applicable
• Review monitoring reports for noncompliance and follow up on the resolution of past
noncompliance, if applicable.
• Issue a single audit report of federal expenditures.
• File the data collection form within the specified deadline.
Completion of the Audit and Preparation of Financial Statements
The nature and extent of the work required is dependent on Consultant's assessment of the
likelihood of misstatements in the financial statements together with our conclusions from the
planning and testing stages of the audit. All of the audit information is then used to reach a
conclusion on whether the financial statements taken as a whole conform with generally accepted
accounting principles.
s Consultant will review significant events after year end
• Consultant will review attorney letters for significant legal matters
• Consultant will prepare the financial statements and other reports
• Consultant will ensure accurate and complete disclosures in the notes to the financial
statements.
• Consultant reports will undergo five levels of review before a draft is given to the City
• Consultant will provide a draft of the reports to the City within two weeks of leaving the
field
• Unless prepared by the City, Consultant will print and bind all reports for the City as well as
providing Color PDF's of the final reports.
• Consultant will meet with the City Council to present the results of the audit.
C. CITY'S DUTIES AND RESPONSIBILITIES:
Communicate with Consultant on an as-needed basis and provide requested documentation to
consultant in a timely manner.
EXHIBIT A
192
D. WORK PROGRAM/PROJECT SCHEDULE:
To be determined
EXHIBIT A
193
EXHIBIT "B"
Payment Schedule (Fixed Fee Payment)
I. CONSUL TANT shall be entitled to monthly progress payments toward the fixed fee set
forth herein in accordance with the following progress and payment schedules.
SEE ATTACHED EXHIBIT B
2. Delivery of work product: A copy of every memorandum, letter, report, calculation and
other documentation prepared by CONSUL TANT shall be submitted to CITY to demonstrate progress
toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY
shall identify specific requirements for satisfactory completion.
3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment
due. Such invoice shall:
A) Reference this Agreement;
B) Describe the services performed;
C) Show the total amount of the payment due;
D) Include a ce1tification by a principal member ofCONSULTANT's firm that the
work has been performed in accordance with the provisions of this Agreement;
and
E) For all payments include an estimate of the percentage of work completed.
Upon submission of any such invoice, if CITY is satisfied that CONSUL TANT is making
satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall
approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the
invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an
invoice, CITY shall notify CONSUL TANT in writing of the reasons for non-approval and the schedule
of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree
that past performance by CONSULT ANT is in, or has been brought into compliance, or until this
Agreement has expired or is terminated as provided herein.
4. Any billings for extra work or additional services authorized in advance and in writing
by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information
required above, and in addition shall list the hours expended and hourly rate charged for such time.
Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or
additional services requested, and if CITY is satisfied that the statement of hours worked and costs
incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the
parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing
performance of the remainder of this Agreement.
Exhibit B
194
1
2
3
4
5
6
7
8
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DA VIS FARR LLP
FOR
FINANCIAL AUDIT SERVICES
Table of Contents
Scope of Services ..................................................................................................... 1
City Staff Assistance ................................................................................................ I
Term; Time of Performance ..................................................................................... 2
Compensation .......................................................................................................... 2
Extra Work ............................................................................................................... 2
Method of Payment .................................................................................................. 2
Disposition of Plans, Estimates and Other Documents .......................................... .3
Hold Harmless ......................................................................................................... 3
9 Professional Liability Insurance ............................................................................. 3
10 Certificate of Insurance ........................................................................................... .4
11
12
13
14
15
16
17
18
19
20
Independent Contractor ............................................................................................ 5
Termination of Agreement.. ..................................................................................... 5
Assignment and Delegation ...................................................................................... 6
Copyrights/Patents ................................................................................................... 6
City Employees and Officials .................................................................................. 6
Notices ......................................................................................... 6
Consent .................................................................................................................... 7
Modification ............................................................................................................. 7
Section Headings ..................................................................................................... 7
Interpretation of this Agreement .............................................................................. 7
21 Dup Ii cate Original. ................................................................................................... 8
22 Immigration ............................................................................................................... 8
23 Legal Services Subcontracting Prohibited ................................................................ 8
24 Attorney's Fees .......................................................................................................... 9
25 Survival ..................................................................................................................... 9
26 Governing Law ......................................................................................................... 9
27 Signatories ................................................................................................................. 9
28 Entirety ...................................................................................................................... 9
29 Effective Date ................................................................................. 10
195
EXHIBITB
I {j"fc"J Gf ;~~unti:ngtori }j,c;;;--Jtb I Proposal for Professional
Auditing Services
Section I -Proposed Cost
Audit of City
Single Audit (includes 2 major programs)
Audit of West Orange County Water Board
Appropriations Limit Review
AB 2766 Audit Report
Total$ (not to exceed)
*Includes 2 major programs, additional major programs may be audited
for $1,500 each.
Estimated Audit Segmentation
Rates Hours
Partner $ 180 48
Manager $ 130 80
In-charge $ 110 170
Staff $ 90 120
Total 418
FY 2022 FY 2023
$ 35,140 35,140
6,400 6,400
5,500 5,500
500 500
1,000 1,000
$ 48,540 48,540
FY 2022
$ 8,640
10,400
18,700
10,800
$48,540
Additional services may be performed at the above quoted hourly rates
FY 2024 Total
36,194 106,474
6,592 19,392
5,665 16,665
515 1,515
1,030 3,030
49,996 147,076
196
197
PROFESSIONAL SERVICES
SERVICE: Financial Auditing Services
SERVICE DESCRIPTION: Provide financial auditing services for all funds of the City’s
reporting entity, Single Audit Report of the City’s federal grant programs, AB 2766 Audit
relating to the City’s Air Quality Fund, and audit of the West Orange County Water Board
(WOCWB), a fiduciary fund of the City of Huntington Beach.
VENDOR: Davis Farr LLP
OVERALL RANKING: 1
SUBJECT MATTER EXPERTS/RATERS: 1. Principal Finance Analyst – Accounting 2.
Public Works Project Manager 3. Fire Senior Administrative Analyst 4. Senior
Accountant
I. MINIMUM QUALIFICATIONS REVIEW
• Written Proposal Score: 1,715
Davis Farr, LLP – Minimum Qualifications Review
Criteria
Total Weighted
Score
Maximum
Score
Proposal Clarity 145 200
Firm Qualifications 475 500
Staffing/Experience 190 200
Understanding/Methodology 450 500
Cost 375 500
References 80 100
Total 1,715 2,000
II. DUE DILIGENCE REVIEW
• Proposal Ranking: 1
Davis Farr LLP – Summary of Review
• Leader in local government sector auditing throughout Southern
California servicing approximately 60 local, state, and federal
government entities.
• Highly qualified: experience auditing governmental entities for over
30 years.
• Serves on the Government Accounting and Audit Committee of the
Cal CPA Society and are frequent speakers on technical topics at
conferences and training events in California.
• Provides an annual Governmental Accounting Standards Board
(GASB) Technical Update for clients.
• References from the cities of Rancho Santa Margarita, Fountain
Valley, Commerce, Garden Grove, and Dana Point.
Davis Farr LLP – Pricing
• Pricing of $156,076 is competitive (fourth lowest of five proposals
submitted)
198
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-369 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL / HOUSING AUTHORITY ACTION
SUBMITTED TO:Honorable Mayor / Board Members
SUBMITTED BY:Sean Joyce, Interim City Manager / Interim Executive Director
VIA:Ursula Luna-Reynosa, Director of Community Development
PREPARED BY:Charles G. Kovac, Housing Manager
Subject:
Approve and authorize execution of a Density Bonus and Affordable Housing Agreement with
S.G.V. Property Fund LLC for the 18-unit townhome project located at 17532 Cameron Lane
Statement of Issue:
It is recommended that the City Council approve a Density Bonus and Affordable Housing Agreement
(“Agreement”) between the City of Huntington Beach (“City”) and S.G.V. Property Fund (“Developer”)
to facilitate the development of a 0.91 acre site located at 17532 Cameron Lane (“Project”). The
Project consists of 18 townhomes, of which, this Agreement will restrict 2 units for moderate income
households for 45 years.
Financial Impact:
Not applicable.
City Council and Housing Authority Recommended Action:
A) Approve the “Density Bonus and Affordable Housing Agreement for 17532 Cameron Lane,
Huntington Beach, by and between the City of Huntington Beach, a California Municipal Corporation
and S.G.V. Property Fund LLC, a Limited Liability Corporation,” for the development an 18-unit
townhome project; and,
B) Authorize the City Manager or their designee to implement and execute the Density Bonus and
Affordable Housing Agreement for the Project, including all necessary related documents; and
C) Authorize the Executive Director or their designee to execute all necessary implementing
agreements and related documents.
Alternative Action(s):
Do not approve and direct staff accordingly.
City of Huntington Beach Printed on 4/27/2022Page 1 of 3
powered by Legistar™199
File #:22-369 MEETING DATE:5/3/2022
Analysis:
On October 12, 2021,the Developer received approval from the Planning Commission for Tentative
Tract Map No. 19154 and CUP No. 21-006 to develop an 18-unit townhome project at 17532
Cameron Lane. The 0.91 acre Project site is vacant and is located on the east side of Cameron
Lane, south of Slater Avenue. The Project layout consists of four detached buildings with 18
residential dwelling units including: 1) one building with six units; 2) one building with five units; 3)
one building with 4 units; and 4) one building with three units. Of these, eight are two-bedroom units
with attached two-car garages and 10 are three-bedroom units with attached two-car garages.
Access to the site includes one ingress/egress driveway on Cameron Lane. The property is required
to provide a 10-ft. right-of-way dedication for pedestrian access and public utilities along the Cameron
Lane frontage. New curbs, gutters, and sidewalks will be installed along the Project’s Cameron Lane
frontage.
Pursuant to California Government Code Section 65915 (the “State Density Bonus Law”), as
implemented under Huntington Beach Zoning and Subdivision Ordinance, Chapter 230.14
(“Ordinance”), developers of housing projects that include specified levels of affordable housing are
entitled to apply for and receive certain density bonuses and additional incentives or concessions in
order to facilitate the economic feasibility of those projects. The Developer is not proposing an
increase in the number of units allowed per the State Density Bonus Law and will meet the
affordability requirements as outlined in the Ordinance. In exchange for making at least 10 percent of
the 18 total units affordable to moderate income households per the Ordinance, the State Density
Bonus Law provides that the developer may receive up to one incentive or concession.
Pursuant to Government Code Section 65915(e), the Developer is requesting waiver of the City’s
parking standards and instead implement the parking ratio allowed under State Density Bonus Law.
To receive this waiver, the Developer must ensure that no less than 10 percent or 2 of the 18 units
remain affordable to moderate income households for 45 years. The proposed Agreement
memorializes this requirement; covenants implementing the Agreement will be recorded on the
property title ensuring that two units will be owned and occupied by moderate income households, as
defined in Health and Safety Code Section 50093, for 45 years. The Owner will build the Project in a
single phase and sell individual units to eligible homebuyers. The maximum moderate income sales
prices for both units will be set in accordance with the Agreement.
The proposed Agreement is consistent with the Ordinance, was prepared by the City Attorney’s
Office, and is included as Attachment 1.
Environmental Status:
Not applicable. As part of the entitlement process and approval by the Planning Commission, the
Project has complied with California Environmental Quality Act (CEQA) provisions and is exempt
pursuant to CEQA Section 15195, Residential Infill Exemption.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. Density Bonus and Affordable Housing Agreement between the City of Huntington Beach and
S.G.V. Property Fund
City of Huntington Beach Printed on 4/27/2022Page 2 of 3
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File #:22-369 MEETING DATE:5/3/2022
City of Huntington Beach Printed on 4/27/2022Page 3 of 3
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RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 21-10670/279181 (Space Above For Recorder's Use) This Density Bonus and Affordable Housing Agreement is recorded at the request and for the benefit of the City of Huntington Beach and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT FOR 17532 CAMERON LANE, HUNTINGTON BEACH BY AND BETWEEN CITY OF HUNTINGTON BEACH, a California Municipal Corporation and S.G.V. PROPERTY FUND LLC, a Limited Liability Corporation -1-202
DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT FOR 17532 CAMERON LANE, HUNTINGTON BEACH This DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into as of the __ day of~, 2022 ("Effective Date") by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation ("City"), and S. G. V. Property Fund, LLC, a California limited liability company ("Owner"). City and Owner are hereinafter sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. City is a municipal corporation and charter city organized and existing pursuant to the Constitution and laws of the State of California. B. Owner is the owner in fee of that certain real property located at 17532 Cameron Lane, Huntington Beach, consisting of approximately 39,640 square foot (0.91 acres) lot (the "Property"). C. Owner has submitted to City plans to develop the Property as an eighteen (18) unit townhome development, as more particularly depicted in the attached Exhibit "B" (the "Project"). Owner will build the Project in a single phase and sell individual units to individual homebuyers. D. Pursuant to California Government Code Section 65915 (the "State Density Bonus Law"), as implemented under Huntington Beach Zoning and Subdivision Ordinance ("HBZSO"), Chapter 230.14, developers of housing projects that include specified levels of affordable housing are entitled to apply for and receive certain density bonuses and additional incentives in order to facilitate the economic feasibility of those projects. Owner is not proposing an increase in the number of units allowed per the State Density Bonus Law and will meet the affordability requirements as outlined in HBZSO Chapter 230.14. In exchange for making at least ten percent (10%) of the 18 total units affordable to Moderate Income Households per HBZSO Chapter 230.14, the State Density Bonus Law provides that the developer may receive up to one "incentive or concession." (Gov't § 65915(d)(2)(A).) E. The City's Inclusionary Housing Ordinance as outlined in HBZSO Chapter 230.14 requires that ten percent (10%) of new housing within the Project be affordable to households earning less than 120% of Orange County Median Income. In compliance with HBZSO Chapter 230.14 requirement, Owner agrees to provide as part of the eighteen (18) ownership units permitted under the City development standards, two units to be affordable to Moderate Income Households, consisting of two (2), two-bedroom units, which are more particularly described in the legal description attached hereto as Exhibit "A" (the "Affordable Units"). F. Pursuant to Government Code Section 65915(e), Owner has applied for the waiver and reduction of a development standard on the basis that they would physically preclude the construction of the Project with the density bonus. Since the Project will be providing 10 percent ofthe total dwelling units for Moderate Income Households, the Owner seeks relief in the form of an incentive and concession from the City parking standards and is implementing the parking ratio under the State Density Bonus Law regulations. G. On October 12, 2021, the Planning Commission approved the application for Tentative 21-10670/279181 -2-203
Tentative Tract Map No. 19154 and CUP No. 21-006. As approved, the Project includes the aforementioned incentive and concession. In order to take advantage of the incentive and concession, Owner must ensure, pursuant to the terms of this Agreement, that no less than ten percent ( 10%) of the eighteen ( 18) units permitted under City development standards are affordable to Moderate Income Households. Consequently, the Project shall include two (2) units that will be owned and occupied by Moderate Income Households, as defined in Health and Safety Code Section 50093, consisting of two (2) two-bedroom units. H. This Agreement sets forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the density bonus incentive and concession of a development standard as set forth herein. I. The development of the Project on the Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of City and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. COVENANTS NOW, THEREFORE, in consideration of the above Recitals, which are incorporated herein by this reference, and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. The following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted For Family Size Appropriate To The Unit" means a household of one person in the case of a studio unit, a household of two persons in the case of a one-bedroom unit, a household of three persons in the case of a two-bedroom unit, a household of four persons in the case of a three-bedroom unit, and a household of five persons in the case of a four-bedroom unit. 1.1.2 "Affordable Housing Cost" for a Moderate Income Household means that purchase price which would result in an annual Monthly Housing Cost which does not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household adjusted for family size appropriate to the Unit under Health and Safety Code Section 50052.5(b)(4). Affordable Housing Cost shall be calculated pursuant to the City Housing Regulations. 1.1.3 "Affordable Units" means the two (2) units, consisting of two (2) two-bedroom Units that are designated pursuant to Section 3 .2 to be sold to and occupied by Moderate Income Households in the Project. 1.1.4 "Affordable Housing Covenant" means the Declaration of Conditions, Covenants and Restrictions for. Moderate Income Affordable Housing to be recorded against each Affordable Unit in the form attached hereto as Exhibit "C." 21-10670/279181 -3-204
1.1.5 "City Housing Regulations" means the "Affordable Ownership Housing Regulations-Homeowner Requirements of the City of Huntington Beach," dated August 15, 2011, as they exist now, and as they may be amended in the future. 1.1.6 "Condominium Map" means that certain final map for condominium purposes for Tract No. 19154 that will create the Units within the Project. 1.1. 7 "Effective Date" means the date the City Council of City approves this Agreement, which date shall be inserted in the preamble to this Agreement. 1.1.8 "Household' means all persons residing in a Unit. 1.1.9 "Incentives and Concessions" means the incentives and concessions identified in Recital F above. 1.1.10 "Market Rate Units" means the Units within the Project to be rented or sold by Owner to a Household without restriction as to income levels, rental rate or sales price. 1.1.11 "Median Income" means the Orange County area median income, adjusted for household size, as established by the United States Department of Housing and Urban Development, and as published periodically by the California Department of Housing and Community Development. 1.1.12 "Moderate Income Household' means a Household whose income does not exceed the qualifying limits for moderate income households pursuant to Health and Safety Code Section 50093, which is those Households whose income does not exceed one hundred twenty percent (120%) of Median Income, adjusted for family size. The income level of a Household shall be determined in accordance with the City Housing Regulations. 1.1.13 "Monthly Housing Cost" shall include all of the following associated with the Affordable Unit: (i) principal and interest payments on a mortgage loan; (ii) property taxes and assessments; (iii) the cost of fire and casualty insurance covering replacement value of property improvements; (iv) homeowner's association fees; (v) reasonable Unit maintenance and repair costs; and (vi) reasonable utility allowance, all as determined according to the City Housing Regulations. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent ( 10%) down payment 1.1.14 "Qualified Purchaser" means a Household that complies with all income verification requirements in this Agreement, and earns not more than one hundred twenty percent (120%) of the Median Income, adjusted for family size, to be determined in accordance with the City Housing Regulations. 1.1.15 "Unit" means a residential dwelling unit within the Project to be sold by Owner pursuant to this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 21-10670/279181 -4-205
Exhibit "A" -Legal Description of the Affordable Units Exhibit "B" -Depiction of the Project Exhibit "C" -Declaration of Conditions, Covenants and Restrictions for Moderate Income Affordable Housing, with attachments Exhibit "D" -Density Bonus and Affordable Housing Agreement Release Agreement 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Owner shall develop the Project as an eighteen (18) unit condominium residential community in accordance with and subject to all applicable entitlements and permits. The Project shall have sixteen (16) Market Rate Units, and two (2) Affordable Units. There shall be two (2) two-bedroom Affordable Units. The average square footage of the Affordable Units shall be approximately the same as the average square footage of the Market Rate Units of the same number of bedrooms. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as the Market Rate Units in the Project. The Affordable Units shall be dispersed throughout the Project. At its discretion, Owner may increase the number of Affordable Units. 2.2 Authorized Waivers and Modifications. and Incentives and Concessions. In accordance with the State Density Bonus Law and pursuant to the entitlements for the Project, City authorized the Waivers and Modifications, and Incentives and Concessions described in the Recitals, above. 2.3 Compliance with Laws. Owner at its sole cost and expense shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Owner shall carry out and perform the development, and marketing of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval of Tentative Map No. 19154. 2.4 Mechanic's Liens; Indemnification. Owner shall take all actions reasonably necessary to prevent and remove any mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Owner or anyone holding the Property or Project, or any part thereof, through or under Owner, that arises from the original construction of the Affordable Units. In the event any such mechanics lien or other similar lien is filed against the Property or Project that arises from the original construction of the Affordable Units, Owner shall, at its sole cost and expense, bond against or discharge such lien within thirty (30) days after the initial filing of the same. Upon request by the City, Owner shall provide to the City updated information from Owner's title insurer. City hereby reserves all rights to post notices of non-responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. Owner shall indemnify, defend (with counsel of City's choosing and the consent of Owner, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Owner's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Owner or anyone holding the Property or Project, or any part thereof, through 21-10670/279181 -5-206
or under Owner, that arises from the original construction of the Affordable Units. 3. AFFORDABLE UNITS 3 .1 Execution and Recording of This Agreement. Owner shall execute this Agreement prior to City Council consideration of approval of this Agreement. No later than thirty (30) days after the recordation of the Condominium Map, Owner shall record an executed original of this Agreement against the Affordable Units in the Official Records for Orange County, California. 3.2 Designation of Affordable Units. At least three (3) months prior to the recordation of the Final Map with the approval of the California Department of Real Estate, Owner shall obtain the approval from the City's Housing Manager of the designation of the two (2) Affordable Units. The Affordable Units shall be disbursed throughout the buildings of the Project. Immediately following the recordation of each Condominium Map for the Project, Owner shall cause the Affordable Housing Covenant (Exhibit "C") to be recorded against any Affordable Units within the Condominium Map. 3.3 Prohibition of Leasing of Market Rate or Affordable Units by the Owner. Owner agrees to market and sell all Market Rate and Affordable Units at the Project. City would not grant the aforementioned Waiver and Reduction of Development Standards, the Incentives and Concessions, nor the modification of parking standards unless Owner agrees to market and sell all the Units in the Project as ownership housing. While Market Rate Units may be leased by the individual owner once purchased from the Owner, in no event may Owner lease any Units. 3.4 Term of Affordable Unit Covenants. Each Affordable Unit designated for Moderate Income Households shall be restricted for use and occupancy by a Moderate Income Household, for a total period of forty-five ( 45) years, commencing on the date that the Owner conveys title to the first purchaser of each Affordable Unit. By way of explanation of the foregoing sentence, it is possible that the affordability term for one Affordable Unit will neither commence on the same date nor terminate on the same date as another Affordable Unit, and it is possible that the affordability terms for all Affordable Units will commence on different days and terminate on different days. 3.5 Memorializing Commencement of Affordability Term. The Notice of Affordability Restrictions is attached as an exhibit to Exhibit "C", the Declaration of Conditions, Covenants, and Restrictions for Moderate Income Affordable Housing. This Notice shall be recorded concurrently with conveyance of title to the first buyer of each Affordable Unit and the affordability term for each Affordable Unit shall begin as of the recordation date of the Notice. 3.6. Sale of Affordable Units to Moderate Income Households. When marketing the Affordable Units, Owner shall comply with the City Housing Regulations. Owner shall not convey title to any Affordable Unit to a Household that the City has not verified as a Moderate Income Household, as determined pursuant the City Housing Regulations. Owner shall not convey title to any Affordable Unit to a Moderate Income Household at a price that exceeds the Affordable Housing Cost for that Affordable Unit as established by the City. In the event that Owner desires to sell an Affordable Unit, Owner shall comply with the requirements of Section 6.4 of the Affordable Housing Covenant. 21-10670/279181 -6-207
4. TERM OF THIS AGREEMENT AND RELEASE OF UNITS 4.1 The term of this Agreement shall commence on the Effective Date and shall continue until the date Owner conveys fee title to buyers of all of the Affordable Units of the Project in accordance with the requirements of this Agreement. Upon satisfaction of the foregoing, the City shall, at the request of Owner, record a termination of this Agreement in the form of Exhibit "D" to this Agreement. The recording of such a termination document shall remove this Agreement as an encumbrance upon title to the Units. Notwithstanding any other provision herein to the contrary, Owner's indemnity obligations under Sections 2.4 (Replacement Housing), 2.5 (Mechanic's Liens) and 5.3 (Indemnification) hereof shall survive the termination of this Agreement. 5. DEFAULT AND TERMINATION; INDEMNIFICATION 5 .1 Default. Failure or delay by any Party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default ( or such other period specifically provided herein) constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 5 .2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 5 .3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Owner shall defend (with counsel of City's choosing and the consent of Owner, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Owner's consent), indemnify and hold harmless City and its officers, officials, agents, employees, representatives, and volunteers from and against any loss, liability, claim, or judgment arising from any act or omission of Owner in connection with its obligations under this Agreement. 6. ASSIGNMENT 6.1 Assignment by Owner. The qualifications and identity of Owner are of particular concern to City. It is because of those qualifications and identity that City has entered into this Agreement. Accordingly, except as authorized in Section below, Owner shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Owner's rights and obligations in this Agreement, without City's prior written approval, which shall not be unreasonably withheld. In considering whether to grant its approval of any proposed transfer or assignment by Owner of its interest in the Property, Project, or this Agreement, City shall consider factors such as the financial strength and capacity of the proposed transferee or assignee to perform Owner's obligations in this Agreement, and the proposed transferee's or assignee's experience and expertise 21-10670/279181 -7-208
in the planning, financing, development, and operation of similar projects. . 6.2 Subsequent Assignment. As used in this Agreement, the term "Owner" shall be deemed to include any such transferee or assignee after the date such transfer or assignment occurs in compliance with this Agreement. 6.3 Unpermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 7. MISCELLANEOUS 7 .1 Notices. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) five (5) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next-day document delivery service (such as FedEx), charges prepaid and delivery scheduled next-day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider. All notices shall be addressed as follows: Ifto CITY: Ifto OWNER: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Director of Community Development & Housing Manager S.G.V. Property Fund LLC 119 E. Saint Joseph Street Arcadia, CA 91006 Attn: George Voigt, Managing Member 7 .2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 7 .3 Entire Agreement. This Agreement and all of its Exhibits and attachments set forth and contain the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, 21-10670/279181 -8-209
understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 7.4 Amendments. The terms of this Agreement may only be modified or amended by an instrument in writing executed by each of the parties hereto; provided, however, the City Manager shall have the authority to issue interpretations, waive provisions and enter into amendments of this Agreement on behalf of City so long as such actions do not substantially change the uses or development permitted on the Property. 7 .5 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 7.6 Interpretation and Governing Law. This Agreement and any dispute ansmg hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 7. 7 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 7.8 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 7.9 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Owner, all obligations of such Owner under this Agreement shall be joint and several, and the default of any such Owner shall be the default of all such Owners. 7 .10 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 7 .11 Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week that City Hall of the City is open for business to the general public. 7.12 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 21-10670/279181 -9-210
7.13 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, pandemics, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), government regulations or other causes beyond the Party's control. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 7 .14 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 7 .15 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, ( c) is binding upon each Party and each successor in interest during ownership of the Property or any portion thereof. 7 .16 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or any other court in that county, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 7.17 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Owner is that of a government entity regulating the development of private property and the Owner of such property. 7.18 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, each party shall bear its own attorneys' fees and costs of suit. 7. 1 9 Authority to Execute. The person or persons executing this Agreement on behalf of either Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their agency, corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. 7 .20 Counterparts. This Agreement may be executed by the Parties in counterparts, 21-10670/279181 -10-211
which counterparts shall be construed together and have the same effect as if all of the Parties had
executed the same instrument.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date
set forth above.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney \\u)
2\.10670/279] 8]
"CITY''
CITY OF HUNTINGTON BEACH,
a California municipal corporation
By: ____________ _
"OWNER"
S.G.V. Property Fund, LLC,
a Califo · imited liability company
By:_---:lr-t''l:::=lt" ....... --------
Its: ---+"'-l,,'li~"-,'r'..__ ______ _
By: __________ _
Its: ___________ _
-11-
212
EXHIBIT A (Legal Description of Affordable Units) That real property located in the City of Huntington Beach, County of Orange, State of California, described as follows: Units __ and __ of Tract No. 19154, as per map recorded in Book __ , Page __ , of miscellaneous maps, in the Office of the County Recorder of Orange County, California. 21-10670/279181 -12-213
EXHIBITB (Project Depiction) 21-10670/279181 -13-214
21-10670/279181 EXHIBIT C TO DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT FOR 17532 CAMERON LANE, HUNTINGTON BEACH (Affordable Housing Covenant) -14-215
RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 SPACE ABOVE THIS LINE FOR RECORDERS' USE ONLY DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR MODERATE INCOME AFFORDABLE HOUSING 17532 CAMERON LANE, HUNTINGTON BEACH This Declaration Of Conditions, Covenants And Restrictions For Moderate Income Affordable Housing ("Resale Restrictions") is made as of ___ , 2022, by and between S.G.V. Property Fund, LLC, a California limited liability company (the "Owner"), and the CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City"), and the HOUSING AUTHORITY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Authority"). At the option of the City and Authority, the Authority may enforce these Resale Restrictions in place of the City. RECITALS A. Owner is the owner in fee of that certain real property consisting of Units and __ , located at 17532 Cameron Lane, Huntington Beach (APN ________ and ______ __,, as more particularly described in the legal description attached hereto as Exhibit "A" and are referred to herein individually as a "Restricted Unit", and collectively as the "Restricted Units". B. Owner submitted to City plans to develop the Property as an eighteen (18) unit residential community to be subdivided as a condominium development. Owner will build the Project in a single phase and sell individual units to individual homebuyers. Pursuant to California Government Code Section 65915 (the "State Density Bonus Law"), as implemented under Huntington Beach Zoning and Subdivision Ordinance ("HBZSO"), Chapter 230.14, developers of housing projects that include specified levels of affordable housing are entitled to apply for and receive certain density bonuses and additional incentives in order to facilitate the economic feasibility of those projects. Owner is not proposing an increase in the number of units allowed per the State Density Bonus Law and will meet the affordability requirements as outlined in HBZSO Chapter 230.14. In exchange for making at least ten percent (10%) of the 18 total units 1 21-10670/273450 216
affordable to Moderate Income Households per HBZSO Chapter 230.14, the State Density Bonus Law provides that the developer may receive up to one "incentive or concession." (Gov't § 65915(d)(2)(A).) C. On October 12; 2021, the Huntington Beach Planning Commission approved the Project pursuant to Tentative Tract No. 19154 and CUP No. 21-006. As a condition of approval of the Tentative Tract Map and CUP, the Project includes two (2) units which are to be occupied by, and sold at prices affordable to Moderate Income Households for a term of 45 years (the "Affordable Units"). Tentative Tract Map No. 19154 was later recorded as Final Tract Map No. 19154 at Instrument No. ____ of the Records of Orange County, California. D. In order to secure the long term affordability of the Affordable Units, the City and Owner entered into the "Density Bonus and Affordable Housing Agreement for 17532 Cameron Lane," which was recorded as Instrument No. ____ in the Records of Orange County, California (the "Density Bonus Agreement"). The Density Bonus Agreement provides that Owner shall designate two (2), two-bedroom units as the Affordable Units. NOW, THEREFORE, the Parties hereto agree and covenant as follows: 1. Affordability Covenants. Owner agrees for itself and the successors and assigns to Owner's interest in the Restricted Units, including each Moderate Income Household purchasing one of the Restricted Units, that for a term of forty-five (45) years from the date of the close of escrow for the initial sale of each such Restricted Unit, that, during the Affordability Period (as defined in Section 4.1 below): 1.1 The Restricted Units shall only be owned and occupied by a Moderate Income Household, which shall mean persons or families earning not more than 120% of the Orange County median income, adjusted for household size as appropriate to the Unit. 1.2 The Restricted Units shall only be sold at an Affordable Housing Cost to Moderate Income Households. 2. Definitions and Exhibits. 2.1 Definitions. In addition to the terms that may be defined elsewhere in this Covenant, the following terms when used in these Resale Restrictions shall be defined as follows: 2.1.1 "Adjusted for family size appropriate to the Unit" means a household of one person in the case of a studio unit, a household of two persons in the case of one-bedroom unit, a household of three persons in the case of a two-bedroom unit, a household of four persons in the case of a three-bedroom unit, and a household of five persons in the case of a four-bedroom unit. 2 21-10670/273450 217
2.1.2 "Affordable Housing Cost" for a Moderate Income Household means that purchase price which would result in an annual Monthly Housing Cost which is not less than Twenty-Eight Percent (28%) of the gross income of the household, nor exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household adjusted for family size appropriate to the Unit, or as otherwise defined by California Health and Safety Code Section 50052.5(b)(4), as may be amended. 2.1.3 "City Housing Regulations" means the "Affordable Ownership Housing Regulations-Homeowner Requirement of the City of Huntington Beach," dated August 15, 2011, as they exist now, and as they may be amended in the future. 2.1.4 "Default" means the failure of a Party to perform any action or covenant required by these Resale Restrictions within the time periods provided herein following notice and opportunity to cure. 2.1.5 "First Lien" means the lien of a primary Lender which secures the obligations of the Owner to repay amounts owed to the Lender. 2.1.6. "Owner" means the then-current owner of a Restricted Unit. Initially, Owner refers to S.G.V. Property Fund, LLC, a California limited liability company. Subsequent to the initial sale of a Restricted Unit, Owner refers to each subsequent owner of any legal or equitable interest in a Restricted Unit. 2.1.7. "Lender" means a lender making a purchase money loan to the Owner for the purchase of the Affordable Unit. 2.1.8 "Median Income" means the Orange County, California area median income, adjusted for household size, as established by the United States Department of Housing and Urban Development, and as published periodically by the State of California Department of Housing and Community Development. 2.1.9 "Moderate Income Household" means a Household whose income does not exceed one hundred twenty percent (120%) of Median Income, adjusted for family size. The income level of a Household shall be determined in accordance with the City Housing Regulations. 2.1.10 "Monthly Housing Cost" shall include all of the following associated with the Restricted Units: (i) principal and interest payments on a mortgage loan; (ii) property taxes and assessments; (iii) the cost of fire and casualty insurance covering replacement value of property improvements; (iv) homeowner's association fees; (v) reasonable Unit maintenance and repair costs; and (vi) reasonable utility allowance. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent (10%) down payment. All Monthly Housing costs shall be determined by the City according to the City Housing Regulations. 3 21-10670/273450 218
2.1.11 "Qualified Purchaser" Means a person or family who complies with all income verification requirements of these Resale Restrictions, and earns not more than one hundred twenty percent (120%) of the Median Income, adjusted for family size, to be determined in accordance with the City Housing Regulations. 2.1.12 "Transfer" shall mean any sale, assignment, conveyance, lease, or transfer, voluntary or involuntary, of any interest in the Restricted Unit. Without limiting the generality of the foregoing, Transfer shall include (i) a transfer by devise, inheritance or intestacy; (ii) the creation of a life estate; (iii) the creation of a joint tenancy interest; (iv) a gift of all or any portion of the Restricted Unit; or (v) any voluntary conveyance of the Restricted Unit. 3. Attachments. The following documents are attached to, and by this reference made a part of, these Resale Restrictions: Exhibit A-Legal Description of Restricted Units Exhibit B -Notice of Affordability Restriction Exhibit C -Promissory Note Exhibit D -Affordable Housing Deed of Trust 4. Term of Resale Restrictions. 4.1 The term of these Resale Restrictions shall commence on the date of the initial sale of each Restricted Unit from Owner to a Qualified Purchaser as evidenced by a deed recorded with the Orange County Recorder's Office and shall continue, with respect to each such Restricted Unit, for forty-five (45) years from said date (the "Affordability Period"). The Covenant contained in this Section shall run with each Restricted Unit and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. By way of explanation of the foregoing sentence, it is possible that the affordability term for one Restricted Unit will neither commence on the same date nor terminate on the same date as another Restricted Unit, and it is possible that the affordability terms for all Restricted Units will commence on different days and terminate on different days. The beginning and expiration dates of the Affordability Period for each Restricted Unit shall be established by the City in the Notice of Affordability Covenant (Exhibit B) recorded in connection with each sale of the Restricted Units. 4.2 Prior to the termination of the Affordability period, each Qualified Purchaser of a Restricted Unit shall enter into a Notice of Affordability Restriction, Promissory Note and Deed of Trust in the forms attached as Exhibits B, C, and D to these Resale Restrictions. 5. Covenant Regarding Use and Sale of Restricted Units. During the Affordability Period, the Restricted Units shall be owned and occupied as the principal 4 21-10670/273450 219
residence of a Moderate Income Household, and in no event may the Restricted Unit be leased to a third party. During the Affordability Period, no transfer of a Restricted Unit shall occur until the City determines that: (a) the proposed purchaser intends to occupy the Restricted Unit as the proposed purchaser's principal residence; (b) the proposed purchaser is a Moderate Income Household; and (c) the proposed transfer occurs at an Affordable Housing Cost. 6. Permitted and Prohibited Transfers of Restricted Units. 6.1 The following Transfers, made in compliance with the terms and conditions of these Resale Restrictions and the City Housing Regulations, shall constitute "Permitted Transfers": (i) a Transfer to a surviving joint tenant or other permitted co-Owner of the Restricted Unit by devise, descent, or operation of law on the death of an Owner; (ii) a Transfer to a spouse such that the spouses become co-Owners of the Restricted Unit; (iii) a Transfer by decree of dissolution, legal separation agreement, or from an incidental property settlement by which the spouse becomes an Owner of the Restricted Unit, provided that in each case the transferee spouse occupies or will occupy the Restricted Unit; (iv) a Transfer to an inter vivas trust in which Owner is and remains the beneficiary and occupant of the Restricted Unit; and (v) a Transfer to a Moderate Income Household at Affordable Housing Cost. A Transfer that is not a Permitted Transfer specified above is a "Prohibited Transfer." During the Affordability Period, the occurrence of a Prohibited Transfer is a Default under these Resale Restrictions. 6.2 All Transfers Prohibited Without City Approval. During the Affordability Period, Owner shall not sell, transfer, use as security for any loan, or convey any interest in a Restricted Unit, except with the express written consent of the City, which consent shall be given only if the Transfer is a Permitted Transfer and in strict compliance with the provisions of this Section 6. 6.3 Maximum Sale Price of Restricted Unit. In the event that Owner decides to sell or otherwise Transfer the Restricted Unit, Owner shall contact the City to obtain the current Affordable Housing Cost, which shall be the maximum sales price of the Restricted Unit. City shall provide the Affordable Housing Cost pursuant to its current Affordable Housing Regulations. Regarding the Affordable Housing Cost, Owner acknowledges that: OWNER, AND EACH SUCCESSOR, HEIR OR ASSIGN OF OWNER, UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF A PROPOSED SALE OR OTHER TRANSFER OF THE RESTRICTED UNIT, TAKING INTO CONSIDERATION PREVAILING INTEREST RATES, THE OFFERED TERMS OF SALE, THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED 5 21-10670/273450 220
HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE SAME OR OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS COVENANT. OWNER, AND EACH SUCCESSOR, HEIR OR ASSIGN OF OWNER, FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THESE RESALE RESTRICTIONS IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. Owner's Initials 6.4 Procedure to Verify a Proposed Transfer. In the event that Owner desires to sell the Restricted Unit, Owner shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attention: Director of Economic Development and Housing Manager City shall process the sale of the Restricted Unit pursuant to the City Housing Regulations within thirty (30) days after receipt of such written notice from Owner notifying City of Owner's desire to sell such Restricted Unit. The City shall not be obligated to approve a transfer unless and until the proposed purchaser has submitted to the City such information and completed such forms as necessary to verify the proposed purchaser's intent with respect to his/her/its residency of the Restricted Unit, his/her/its gross income, and an affidavit of the proposed purchaser disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Restricted Unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the purchaser is aware that: (i) the purchaser buying the Restricted Unit may only sell the Restricted Unit at an Affordable Housing Cost to a Moderate-Income Household as provided in Section 1 above, (ii) the maximum permitted sales price may be less than fair market value and (iii) the Restricted Unit must be owner-occupied at all times and cannot be rented or leased. The approved purchaser shall also submit an executed promissory, trust deed, notice documents, and any other documentation reasonably required by the City to effectuate the Affordable Housing Program. Owner shall cooperate with the City in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the City in connection with only the Owner's sale of the Restricted Unit. 6 21-10670/273450 221
7. Non-Discrimination Covenants. Owner covenants by and for itself, it successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the Restricted Unit, nor shall Owner itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the Restricted Unit. Owner and its successors and assigns shall refrain from restricting the sale of the Restricted Unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clause: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In contracts: "There shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferor himself or herself of any person claiming under or though him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, subtenants or vendee of the premises." (c) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assignees, and all persons claiming under or though him or her, and this lease is made and accepted upon and subject to the following conditions: 7 21-10670/273450 222
"That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or though him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, sublessees, subtenants, or vendees in the premises herein leased." Nothing in this Section 7 shall be construed to authorize the rental or lease of the Restricted Unit if such rental or lease is not otherwise permitted. 8. Encumbrances. 8.1 Financings on Transfer. This Section 8 shall not prohibit the encumbering of title for the sole purpose of securing financing of the purchase price of the Restricted Unit upon a Transfer thereof; however, any such financing shall be for the Owner and (i) must be a First Lien, (ii) must not be in excess of the Affordable Housing Cost of the Restricted Unit as of date of approval for the financing, (iii) must be in compliance with these Resale Restrictions and the Affordable Housing Deed of Trust, and (iv) shall be subordinate to these Resale Restrictions. 8.2 Subordination. These Resale Restrictions shall have priority over all monetary liens and encumbrances for the Affordability Period. However, the Affordable Housing Deed of Trust only may be subordinated to a First Lien on the Restricted Unit that secures the payment of a principal amount that is not in excess, as of the date of approval for said financing, of the Affordable Housing Cost of the Restricted Unit. The City shall execute a written instrument for the subordination of its rights under the Affordable Housing Deed of Trust in the form approved by the City Attorney as may reasonably be requested by the Lender. The City's agreement to so subordinate its rights is subject to agreement in writing by the Lender providing the City the following rights: (a) Upon the occurrence of a Default under any of the First Lien documents, the holder of the First Lien shall promptly notify the City of the occurrence of such Default, which notification shall be provided to the City contemporaneously with the delivery to Owner of any notice of Default under any of the First Lien documents; and (b) The City shall have the right, during the cure periods which apply to the Owner pursuant to the First Lien documents and any cure period which may apply to the City under applicable law, to cure the Owner's Default relative to the First Lien; and 8 21-10670/273450 223
(c) After a Default on any of the First Lien documents but prior to a foreclosure sale or deed in lieu assignment of the Restricted Unit, the City shall have the right to take title to the Restricted Unit and cure the Default relative to the First Lien documents, without the holder of the First Lien exercising any right it might otherwise have to accelerate the obligations secured by the First Lien by reason of such title transfer, so long as the City promptly cures any such Default upon taking title to the Restricted Unit. 8.3 Request for Notice of Default. The City may cause a Request for Notice to be recorded on the Restricted Unit subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of Default as set forth in California Civil Code Section 2924b. 8.4 Further Encumbrances Prohibited. Owner shall not record or cause or permit the recordation of any deed of trust, mortgage, lien or other instrument creating a security interest in or to the Restricted Unit (a "Further Encumbrance") other than these Resale Restrictions, the First Lien and the Affordable Housing Deed of Trust. 9. Uses. The Restricted Unit shall be used as the principal residence of Owner and owner's family and may not be rented or leased. Owner covenants and agrees to devote, use, and maintain the Restricted Unit in accordance with these Resale Restrictions. All uses conducted on the Restricted Unit, including, without limitation, all activities undertaken by the Owner pursuant to these Resale Restrictions, shall conform to all applicable provisions of federal, state, and local laws, including the Huntington Beach Municipal Code, and the City Housing Regulations. 10. Maintenance of Unit. Owner shall maintain the Restricted Unit in a manner consistent with community standards which will uphold the value of the Restricted Unit, in accordance with the Huntington Beach Municipal Code. Owner also shall comply with all applicable federal, state and local laws. 11. Effect of Violation of the Terms and Provisions of These Resale Restrictions. 11.1 Covenants Run with the Land. These Resale Restrictions are designed to create equitable servitudes and covenants running with the Restricted Unit, in accordance with the provisions of Civil Code Section 1468, and the State Density Bonus Law and the Huntington Beach Zoning and Subdivision Ordinance. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth herein shall run with the Restricted Unit and shall be binding upon all persons having any right, title or interest in the leasehold interest in the Restricted Unit, or any part thereof, their heirs, successive owners and assigns; shall inure to the benefit of the City and its successors and assigns, shall be binding upon Owner, and its successors and assigns; and may be enforced by City and its successors and assigns. Owner hereby declares its understanding and intent that the burden of the covenants 9 21-10670/273450 224
set forth herein touch and concern the land and that the Owner's interest in the Restricted Unit is rendered less valuable thereby. Owner hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Restricted Unit by Owner, and by furthering public purposes for City. In amplification and not in restriction of the provisions hereinabove, it is intended and agreed that City is deemed a beneficiary of the agreements and covenants provided herein both for and in its own right and also for the purposes of protecting the interests of the community. All covenants without regard to technical classification or designation shall be binding for the benefit of City and such covenants shall run in favor of City for the entire period during which such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. However, all such covenants and restrictions shall be deemed to run in favor of all real property owned by the City which real property shall be deemed the benefited property of such covenants. Furthermore, all of the covenants, conditions, and restrictions contained herein shall also constitute easements in gross running in favor of the City. City shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any action at law or suit in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant. 11.2 Notice of Default. Failure or delay by Owner to perform any term or provision of these Resale Restrictions which is not cured within thirty (30) days after receipt of notice from the City constitutes a Default under these Resale Restrictions; provided, however, if such Default is of the nature requiring more than thirty (30) days to cure, Owner may avoid Default hereunder by immediately commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within sixty (60) days after the expiration of the initial thirty (30) day period, for a total of ninety (90) days. Failure or delay in giving notice by the City shall not constitute a waiver of any Default, nor shall it change the time of Default. 11.3 City's Remedies. Upon the declaration of a Default, the City may (i) apply to a court of competent jurisdiction for specific performance, for an injunction prohibiting any act or omission in violation of these Resale Restrictions, or for any such other relief as may be appropriate, (ii) exercise the City's rights under these Resale Restrictions and the Affordable Housing Deed of Trust, including, without limitation, foreclosure of the Restricted Unit, and (iii) pursue such other rights and remedies permitted under these Resale Restrictions and by applicable law. 11.4 Prohibited Transfers Void. Any attempt by the Owner to make a Prohibited Transfer of title to or any interest in the Restricted Unit in violation of these Resale Restrictions shall be void and subject to rescission, specific performance, or any other right or remedy available at law or in equity. 10 21-10670/273450 225
12. Governing Law. Owner hereby agrees to comply with all ordinances, rules and regulations of the City, including the City Housing Regulations. Nothing in these Resale Restrictions is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule or regulation. These Resale Restrictions shall be governed by the laws of the State of California without regard to conflict of law principles. Any legal action brought under these Resale Restrictions must be instituted in the Superior Court of the County of Orange, State of California, or in the Federal District Court in the Central District of California. 13. Attorneys' Fees and Costs. If either Party to these Resale Restrictions institutes any action against the other Party arising out of or in connection with to these Resale Restrictions, each Party shall bear its own attorney's fees and costs of suit. 14. Severability. So long as the material bargain of the Parties may be preserved, any provision of these Resale Restrictions that is deemed to be illegal, invalid or unenforceable by an arbitrator or court of competent jurisdiction shall be ineffective to the extent of the invalidity or unenforceability of such provision and shall be deemed stricken from these Resale Restrictions. Any stricken provision shall not affect the legality, enforceability or validity of the remainder of these Resale Restrictions. If any provision of these Resale Restrictions is stricken in accordance with the provisions of this Section, then the stricken provision shall be replaced, to the extent possible, with a legal, enforceable and valid provision that is as similar in tenor and intent to the stricken provision as is legally possible. Any such invalidity or unenforceability of any provision in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 15. Exhibits. Each of the Attachments referenced in these Resale Restrictions and attached hereto is incorporated into these Resale Restrictions by this reference as though fully set forth in this Section. IN WITNESS WHEREOF, the Parties have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. OWNER: S.G.V. Property Fund, LLC, a California limited liability company By:-----------Its: --------------By:-----------21-10670/273450 11 226
Its: ------------CITY: CITY OF HUNTINGTON BEACH, a California municipal corporation Mayor ATTEST: City Clerk AUTHORITY: HOUSING AUTHORITY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: __________ _ Chairperson ATTEST: Authority Clerk APPROVED AS TO FORM: City Attorney/Authority Counsel t.)J/ INITIATED AND APPROVED: City Manager 12 21-10670/273450 227
EXHIBIT A LEGAL DESCRIPTION OF TWO AFFORDABLE UNITS AT 17532 CAMERON LANE, HUNTINGTON BEACH SUBJECT TO THE AFFORDABLE HOUSING COVENANT FOR 17532 CAMERON LANE, HUNTINGTON BEACH (The Affordable Housing Covenant Is Exhibit C To Density Bonus And Affordable Housing Agreement For 17532 Cameron Lane, Huntington Beach) 13 21-10670/273450 228
EXHIBIT B NOTICE OF AFFORDABILITY RESTRICTION (The Notice is an Exhibit to the Affordable Housing Covenant, which is Exhibit C to Density Bonus And Affordable Housing Agreement For 17532 Cameron Lane, Huntington Beach) 14 21-10670/273450 229
Recording Requested By: Housing Authority of the City of Huntington Beach 2000 Main Street, 5th Floor Huntington Beach, California 92648 Attention: Community Enhancement SPACE ABOVE THIS LINE FOR RECORDER'S USE NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (Unit_, 17532 Cameron Lane, Huntington Beach, CA 92648) NOTICE IS HEREBY GIVEN by _____ ("Owner"), owner of the property located at 17532 Cameron Lane, Unit _, Huntington Beach, California 92648, Assessor's Parcel Map No. _____ , and more particularly described in Exhibit "A" attached hereto (the "Property"), that: 1. On ______ , 2022, the "Declaration of Conditions, Covenants and Restrictions," were recorded against the Property as Instrument No. ______ in the Office of the County Recorder of the County of Orange (the "Resale Restrictions"). Further, concurrently with this Notice, a "Deed of Trust with Assignments of Rents to Secure the Affordability Restrictions on Transfer of the Property" ("Deed of Trust") was recorded concurrently with this Notice. Among other things, the Resale Restrictions, as amended by the Deed of Trust, limit the price that the Property may be sold to an "Affordable Housing Cost" for "Moderate Income Households," as those terms are defined in the Resale Restrictions, and further defined in the current Affordable Housing Regulations of the City of Huntington Beach and the Deed of Trust. 2. The administration of the Resale Restrictions shall be governed by the Affordable Housing Regulations of the City of Huntington Beach, dated August 15, 2011, as they exist now and may be amended in the future. 3. In summary, the Property may only be sold to a "Moderate Income Household" at a price that does not exceed the "Affordable Housing Cost." The Affordable Housing Cost is the purchase price that results in monthly housing payments which do not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly 230
median income for a household equal to the number of bedrooms in the unit plus one (1) person. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent (10%) down payment. The mortgage interest rate will be the prevailing Fannie Mae thirty (30) year mortgage rate, or a City-selected equivalent. Monthly housing costs will also include homeowner's association dues, utilities, homeowner's insurance, maintenance costs and property taxes. Further, a qualifying buyer of the Property shall be a "Moderate Income Household" whose income does not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the unit plus one (1) person. 4. The effect of relying on prevailing interest rates to determine the Affordable Housing Cost is to make the resale price of the Property sensitive to interest rates. For example, if interest rates rise, the resale price will fall, and if interest rates fall, the resale price will rise. This could result in the Affordable Housing Cost decreasing below the original purchase price. 5. In the event that Owner decides to sell or otherwise Transfer of the Property, Owner shall contact the City to obtain the current Affordable Housing Cost, which shall be the maximum sales price of the Property. City shall provide the Affordable Housing Cost pursuant to its current Affordable Housing Regulations. Regarding the Affordable Housing Cost, Owner acknowledges that: OWNER, AND EACH SUCCESSOR, HEIR OR ASSIGN OF OWNER, UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF A PROPOSED SALE OR OTHER TRANSFER OF THE RESTRICTED UNIT, TAKING INTO CONSIDERATION PREVAILING INTEREST RATES, THE OFFERED TERMS OF SALE, THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE SAME OR SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS COVENANT. OWNER, AND EACH SUCCESSOR, HEIR OR ASSIGN OF OWNER, FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THESE RESALE RESTRICTIONS IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. 231
6. The City shall approve a Transfer of the Property if such Transfer complies with the Resale Restrictions. 7. The Property shall be owner-occupied at all times and shall not be leased or rented. 8. The Resale Restrictions imposed on the Property began on ___ , 20_ and expire forty-five years later, on ____ , 20_. This Notice is recorded for the purpose of providing notice only and does not modify the provisions of the Resale Restrictions or the Deed of Trust. Dated: ----------Dated: --------By: ___________ _ APPROVED AS TO FORM: By:-----------=-----City Attorney 232
EXHIBIT A LEGAL DESCRIPTION OF TWO AFFORDABLE UNITS AT 17532 CAMERON LANE, HUNTINGTON BEACH SUBJECT TO THE AFFORDABLE HOUSING COVENANT FOR 17532 CAMERON LANE, HUNTINGTON BEACH (The Affordable Housing Covenant Is Exhibit C To Density Bonus And Affordable Housing Agreement For 17532 Cameron Lane, Huntington Beach) 13 21-10670/273450 233
EXHIBIT C PROMISSORY NOTE (The Promissory Note is an Exhibit to the Affordable Housing Covenant, which is Exhibit C to Density Bonus And Affordable Housing Agreement For 17532 Cameron Lane, Huntington Beach) 15 21-10670/273450 234
PROMISSORY NOTE TO SECURE AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (Unit_, 17532 Cameron Lane, Huntington Beach, CA 92648) THIS PROMISSORY NOTE (the "Note") is dated this __ day of ______ , 2021, between ________ ("Promissor") and the Housing Authority of the City of Huntington Beach ("Authority") with reference to the following facts: A. This Promissory Note is made in reference to that property in the City of Huntington Beach, County of Orange, State of California, with· the street address Unit _, 17532 Cameron Lane, Huntington Beach, California 92648, and the Assessor's Parcel Map No. _____ (the "Property"). B. On _____ , 2022, the "Declaration of Conditions, Covenants and Restrictions for Property," were recorded against the Property as Instrument No. _______ in the Office of the County Recorder of the County of Orange (the "Resale Restrictions"). Among other things, the Resale Restrictions limit the price that the Property may be sold to an "Affordable Housing Cost" to "Moderate Income Households," as those terms are defined in the Resale Restrictions, and further defined in the Affordable Housing Regulations. The Affordable Housing Regulations, as they may be amended from time to time, are utilized to implement the provisions of the Resale Restrictions. C. The Affordable Sales Price pursuant to the Resale Restrictions shall be the purchase price that would result in monthly housing payments that do not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the Property plus one (1) person. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent (10%) down payment. The mortgage interest rate will be the prevailing Fannie Mae or Freddie Mac thirty (30) year mortgage rate, or a City-selected equivalent. Monthly housing costs will also include homeowner's association dues, utilities, homeowner's insurance, maintenance costs and property taxes. Further, a qualifying buyer of the Property shall be a "Moderate Income Household" whose income does not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the unit plus one (1) person. The effect of relying on prevailing interest rates to determine the Affordable Housing Cost is to make the resale price of the Property sensitive to interest rates. For example, if interest rates rise, the resale price will fall, and if interest rates fall, the resale price will rise. This could result in the Affordable Housing Cost decreasing below the original purchase price. D. Concurrently with executing this Note, Promissor has executed a Deed of Trust securing and amending the Resale Restrictions (the "Authority of Deed of Trust"). 21-10670/273454 1 235
E. Pursuant to the Resale Restrictions, the City has approved the transfer of the Property to Promissor at an Affordable Housing Cost. To insure that any further sale, transfer or assignment of the Property occurs with the City's approval and at an Affordable Housing Cost, the City has required as a condition of the Promissor's transfer of the Property that Promissor execute this Note. AGREEMENT NOW, THEREFORE, the parties agree as follows: 1. Incorporation of Recitals. The recitals set forth above are incorporated by reference as though fully set forth herein. 2. Amount of the Note. The Amount of this Note is the "Transfer Price" of the Property, less the "Affordable Housing Cost." The Transfer Price shall be determined according to the circumstances that cause the Amount of the Note to become due pursuant to Section 3 of this Note. In the case of the sale of the Property without the City's consent, the Transfer Price shall be the market sales price. In the case of the financing or refinancing of the Property without the City's consent, the Transfer Price shall be the loan amount in excess of the last loan balance on the First Mortgage that the City previously approved. In all other cases, the Transfer Price shall be the fair market value of the Property as established by the Director of Economic Development of the City pursuant to an appraisal. The term "Affordable Housing Cost" shall be defined according to the current Affordable Housing Regulations as adopted by the City of Huntington Beach. Promissor promises to pay the Amount of this Note when due to the Housing Authority at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Authority may direct from time to time in writing. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 3. Due on Sale, Transfer or Refinancing. Promissor agrees to notify the Authority not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any financing or refinancing of the Property. This Note shall be due and payable upon (i) such sale or transfer without the City's consent, (ii) the financing or refinancing of the Property without the City's consent, (iii) Promissor is no longer an occupant of the Property, or (iv) Promissor is in material default of any other obligation under the Resale Restrictions, or the Authority Deed of Trust. 4. Expiration of the Note Obligation. In the event Promissor does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of the Resale Restrictions or the Authority Deed of Trust before the forty-fifth (45) anniversary of the date of this Note, Promissor shall have no obligation to pay the Note Amount to Authority upon later sale, transfer or refinancing of the Property. 5. Default. The entire unpaid Amount of this Note shall be due and payable in full in the event of a default. The following shall be deemed to be an event of default: 21-10670/273454 2 236
(i.) The City determines that the Promissor has made a misrepresentation to obtain the benefits of purchase of the Property or in connection with its obligations under the Resale Restrictions; (ii.) The Promissor fails to occupy the Property as required pursuant to the Resale Restrictions and the Authority Deed of Trust, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice; (iii.) The Promissor rents the Property in violation of the Resale Restrictions and the Authority Deed of Trust, and such failure continues following written notice by the City and sixty (60) days opportunity to cure; (iv.) The Promissor fails to provide information to the City necessary to determine Promissor's compliance with the requirements of the Resale Restrictions; (v.) The Promissor makes a transfer of the Property in violation of the Resale Restrictions; (vi.) The Promissor otherwise fails to comply with the requirements of the Resale Restrictions, and such violation is not corrected to the satisfaction of the City within thirty (30) days after the date of written notice by the City to the Trustor of such violation; (vii.) A notice of default is issued under the First Mortgage Loan or other financing secured by the Property; (viii.) A lien is recorded against the Property other than the lien of a bona fide mortgage loan. (ix.) Promissor places a mortgage on the Property without the prior approval of the Authority. (x.) Promissor declares bankruptcy or makes an assignment of assets for the benefit of creditors. (xi.) The Promissor fails to pay any real property taxes or insurance premiums on the Property as they become due. (xii.) Promissor continues to materially breach the Resale Restrictions or the Authority Deed of Trust, following the City or the Authority giving notice of the breach and an opportunity to cure. (viii.) Promissor fails to pay the Note Amount when due. 6. This Note is secured by a concurrently executed Deed of Trust, to the City of Huntington Beach, as Trustee, executed by Promissor in favor of the Authority. 21-10670/273454 3 237
7. Notice. All payments, notices, consents, waivers and other communications under this Agreement must be in writing and shall be deemed to have been given when (a) delivered by hand, or, (b) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case addressed as set forth below: If to PROMISSOR: 17532 Cameron Lane, Unit_ Huntington Beach, CA 92648 If to AUTHORITY: Housing Authority of the City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: City Clerk and Deputy Director of Community Development City of Huntington Beach 2000 Main Street, 5th Floor Huntington Beach, CA 92648 8. Governing Law. This Agreement is governed by and shall be construed in accordance with the laws of the State of California without giving effect to the conflict of laws principles thereof. The parties agree to personal jurisdiction in the State Courts in Orange County, California and specifically waive any claims of forum non-conveniens. 9. Modification. This Agreement shall not be amended or modified, except in writing, signed by both parties. 10. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns under this Note. This Note shall not be assigned without the express written consent of Authority. 21-10670/273454 4 238
Dated: ---------Dated: ---------Dated: ---------21-10670/273454 PROMISSOR By: ______________ _ HOUSING AUTHORITY OF THE CITY OF HUNTINGTON BEACH By: ____________ _ Deputy Director of Community Development APPROVED AS TO FORM: By: ____________ _ City Attorney 5 239
EXHIBIT D AFFORDABLE HOUSING DEED OF TRUST (The Affordable Housing Deed of Trust is an Exhibit to the Affordable Housing Covenant, which is Exhibit C to Density Bonus And Affordable Housing Agreement For 17532 Cameron Lane, Huntington Beach) 16 21-10670/273450 240
OFFICIAL BUSINESS Document entitled to free recording per Government Code Sections 6103 and 27383 Recording Requested By: Housing Authority of the City of Huntington Beach 2000 Main Street, 5th Floor Huntington Beach, California 92648 Attention: Community Enhancement SPACE ABOVE THIS LINE FOR RECORDER'S USE DEED OF TRUST WITH ASSIGNMENTS OF RENTS TO SECURE RESALE RESTRICTIONS ON TRANSFER OF PROPERTY (Unit_, 17532 Cameron Lane, Huntington Beach, CA 9264 7) THIS DEED OF TRUST is made this __ day of ______ , 2022 by and among ________ (the "Trustor"), whose address is Unit __ , 17532 Cameron Lane, California 92647 ("Truster") and the CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and the HOUSING AUTHORITY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Beneficiary"), whose address is 2000 Main Street, Huntington Beach, California 92648, with reference to the following facts: A. This Deed of Trust is made in reference to that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein with the street address Unit __ , 17532 Cameron Lane, Huntington Beach, California, 92647, and the Assessor's Parcel Map No. ______ (the "Property"). B. The City has adopted an lnclusionary Housing Ordinance (the "lnclusionary Ordinance," currently Section 230.26 of the City Zoning Code). C. On _____ , 2022, the "Declaration of Conditions, Covenants and Restrictions for Property," were recorded against the Property as Instrument No. ___ in the Office of the County Recorder of the County of Orange (the "Resale Restrictions"). Among other things, the Resale Restrictions limit the price that the Property may be sold to an "Affordable Housing Cost" to "Moderate Income Households," as those terms are defined in the Resale Restrictions, and further defined in the Affordable Housing Regulations. The Affordable Housing Regulations, as they may be amended from time to time, are utilized to implement the provisions of the Resale Restrictions. D. The Affordable Sales Price pursuant to the Resale Restrictions shall be the purchase price that would result in monthly housing payments that do not exceed 21-10670/272585 1 241
Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the Property plus one (1) person. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent (10%) downpayment. The mortgage interest rate will be the prevailing Fannie Mae or Freddie Mac thirty (30) year mortgage rate, or a City-selected equivalent. Monthly housing costs will also include homeowner's association dues, utilities, homeowner's insurance, maintenance costs and property taxes. Further, a qualifying buyer of the Property shall be a "Moderate Income Household" whose income does not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the unit plus one (1) person. The effect of relying on prevailing interest rates to determine the Affordable Sales Price is to make the resale price of the Property sensitive to interest rates. For example, if interest rates rise, the resale price will fall, and if interest rates fall, the resale price will rise. This could result in the Affordable Sales Price decreasing below the original purchase price. E. The administration of the Resale Restrictions, as modified by this Deed of Trust, shall be governed by the Affordable Housing Regulations of the City of Huntington Beach, as they exist now and may be amended in the future. F. Pursuant to this Deed of Trust, the Resale Restrictions expire on ___ , 20_ (the "Expiration Date"). NOW, THEREFORE, TRUSTOR HEREBY irrevocably grants, transfers and assigns, to Trustee, in trust, with power of sale of the Property, together with (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of the Property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of the Property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: 1. Payment of the indebtedness evidenced by a promissory note executed by Truster concurrently with this Deed of Trust (the "City Note"). The Amount of the City Note is the "Transfer Price" of the Property, less the "Affordable Housing Cost." The calculation of the Amount is set forth with specificity in the Note, which is on file with the Community Development Department of the City of Huntington Beach. 21-10670/272585 2 242
2. Performance of each and every obligation, covenant, promise and agreement of the Resale Restrictions. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. Restriction on Resale or Transfer of Property. Truster agrees for itself, and its successors and assigns, and every successor to Truster's interest in the Property, or any part thereof until the Expiration Date, to perform all obligations due under the Resale Restrictions, as those obligations are restated and modified as set forth below: (a) The Property shall only be owned and occupied by persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning one hundred twenty percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property may only be sold to "Moderate Income" households at an "Affordable Housing Cost," as those terms are further defined in Affordable Housing Regulations. Generally, those Regulations define Affordable Housing Cost to mean that purchase price which would result in monthly housing payments, which do not exceed Thirty-Five Percent (35%) of One Hundred Ten Percent (110%) of the current Orange County monthly median income for a household equal to the number of bedrooms in the unit plus one (1) person. In determining monthly housing payments, the City will assume principal and interest payments on a conventional home mortgage after paying a ten percent (10%) downpayment. The mortgage interest rate will be the prevailing Fannie Mae thirty (30) year mortgage rate, or a City-selected equivalent. Monthly housing costs will also include homeowner's association dues, utilities, homeowner's insurance, maintenance costs and property taxes. The effect of relying on prevailing interest rates to determine the Affordable Housing Cost is to make the resale price of the Property sensitive to interest rates. For example, if interest rates rise, the resale price will fall, and if interest rates fall, the resale price will rise. This could result in the Affordable Housing Cost decreasing below the original purchase price of the Property. (c) The Truster shall further comply with the Affordable Housing Regulations. (d) No transfer of the Property shall occur until the City of Huntington Beach determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of Moderate Income, and (c) that the proposed transfer occurs at an Affordable Housing Cost. The City of Huntington Beach shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the City of Huntington Beach 21-10670/2725 85 3 243
such information and completed such forms as the City of Huntington Beach shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the City of Huntington Beach an executed disclosure statement which certifies that the purchaser is aware that the purchaser may only sell the unit at an Affordable Housing Cost to a Moderate Income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner-occupied at all times and cannot be rented or leased. TRUSTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF TRUSTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. TRUSTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF TRUSTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE BENEFICIARY AND THIS DEED OF TRUST IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. Trustor Initials Truster Initials (e) The City of Huntington Beach may impose any conditions on the approval of any transfer of the Property as it determines are reasonably necessary for the effective administration of its Affordable Housing Program. Such conditions may include, but are not limited to, requiring the prospective purchaser to sign: (i) a promissory note in favor of the City by which he or she agrees to pay any excess proceeds of sale or in excess rental proceeds to the City, and (ii) a deed of trust on the Property securing both the Resale Restrictions and the promissory note. (f) The Truster shall occupy the Property as the Truster's principal place of residence and shall not lease or rent the Property. The Truster shall provide an annual written certification to the City that the Truster is occupying the Property as his or her principal place of residence, and that the Truster is not renting the Property to another party. 21-10670/272585 4 244
(g) The Resale Restrictions shall run with the land and shall automatically terminate and be of no further force or effect on _____ , 20_. 2. Defaults. (a) The following events shall constitute a Default by the Truster under the Resale Restrictions: (1) The City determines that the Truster has made a misrepresentation to obtain the benefits of purchase of the Property or in connection with its obligations under the Resale Restrictions; (2) The Truster fails to occupy the Property as his or her principal place of residence as required pursuant to Section 1 (f) above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice; (3) The Truster rents the Property in violation of Section 1 (f) above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure; (4) The Truster fails to provide information to the City necessary to determine Truster's compliance with the requirements of the Resale Restrictions; (5) The Truster transfers the Property in violation of the Resale Restrictions; (6) The Truster otherwise fails to comply with the requirements of the Resale Restrictions, and such violation is not corrected to the satisfaction of the City within thirty (30) days after the date of written notice by the City to the Truster of such violation; (7) A notice of default is issued under the First Mortgage Loan or other financing secured by the Property; (8) A lien is recorded against the Property other than the lien of a bona fide mortgage loan. (9) Truster places a mortgage on the Property in violation of Section 9 below; or (10) Truster declares bankruptcy or makes an assignment of assets for the benefit of creditors. (b) Upon a declaration of Default by the City under the Resale Restrictions, the City may exercise any remedies at law or in equity, including without limitation, any or all of the following, none of which shall be an exclusive remedy: 21-10670/272585 5 245
(1) Declare the City Note due and payable without further demand and accelerate payments due under the City Note; (2) Invoke the power of sale under this Deed of Trust; (3) Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate; (4) Take such enforcement action as is authorized under the Huntington Beach Municipal Code; and (5) Declare a Default under the City Note and this Deed of Trust and pursue all City remedies under the City Note and the City Deed of Trust. 3. Notice of Default and Foreclosure. A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Property shall be recorded by the City in the Office of the Recorder of the County of Orange. The City may declare a Default under this Resale Agreement upon receipt of any notice given to the City pursuant to Civil Code section 2924b, and may exercise its rights as provided in Sections 2 and 4. In the event of default and foreclosure, the City shall have the same right as the Truster to cure defaults and redeem the Property prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the City to cure any such default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage. If the City failed to file the request for notice of default, the City's right to purchase the Property shall commence from the date a notice of default is given by the City to the Truster. 4. Purchase Option Upon Default. Notwithstanding, and in addition to the remedies provided the City in Section 2, the Truster hereby grants to the City the option to purchase the Property following written notice by the City to the Truster of the declaration of a Default by the City under the Resale Restrictions. This option to purchase is given in consideration of the economic benefits received by the Truster resulting from ownership of the Property made possible by the City's Affordable Housing Program. The City shall have thirty (30) days after a Default is declared to notify the Truster and the First Lender of its decision to exercise its option to purchase under this Section 4. Not later than ninety (90) days after the notice is given by the City to the Truster of the City's intent to exercise its option under this Section 4, the City shall purchase the Property for the Affordable Housing Cost calculated in the manner set forth in Section 1. 21-10670/272585 6 246
5. Restrictions on Foreclosure Proceeds. If a creditor acquires title to the Property through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, the Truster shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Truster when added to the proceeds paid or credited to the creditor exceed the Affordable Housing Cost. The Truster shall instruct the holder of such excess proceeds to pay such proceeds to the City in consideration of the benefits received by the City through purchase of the Property under the City's lnclusionary Housing Program. 6. Restrictions on Insurance Proceeds. If the Property is damaged or destroyed and the Truster elects not to rebuild the Property, the Truster shall pay the City the portion of any insurance proceeds received by the Truster for such destruction or damage which is in excess of the Affordable Housing Cost calculated pursuant to Section 2 above. 7. Superiority of Resale Restrictions. The Truster covenants that he or she shall has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions hereon, and that, in any event, the Resale Restrictions are controlling as to the rights and obligations between and among the Truster, the City and their respective successors. 8. Subordination. (a) Notwithstanding any provision herein, the Resale Restrictions shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender Deeds of trust hereafter recorded against the Property in compliance with the Resale Restrictions. (b) The City may subordinate the Resale Restrictions and this Deed of Trust to the lien of a First Lender Deed of Trust, in which case the Resale Restrictions and this Deed of Trust shall not impair the rights of the First Lender, or such lender's assignee or successor in interest, to exercise its remedies under the First Lender Deed of Trust by the Truster. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, the Resale Restrictions and this Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquires title to the Property pursuant to a deed or assignment in lieu of foreclosure, the Resale Restrictions and this Deed of Trust shall automatically terminate upon such acquisition of title, only if (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60) day cure period, (ii) the City shall not have cured the default within such sixty (60) day period or commenced to cure and given its firm commitment to complete the cure 21-10670/272585 7 247
in form and substance acceptable to the first lender, or (iii) the City shall not have exercised its option to purchase the Property pursuant to Section 4 above within such sixty (60) day period and then proceeded diligently to cure the default within sixty (60) days of acquiring title to the Property. 9. Refinance of First Mortgage Loan: Further Encumbrance of Property. Truster may not refinance of the first mortgage on the Property and/or add a second mortgage on the Property without approval of the City. The City shall only approve refinancing in compliance with the Affordable Housing Regulations. 10. Interpretation of Resale Restrictions. The terms of the Resale Restrictions shall be interpreted so as to avoid speculation on the Property and to ensure to the extent possible that its sales price and mortgage payments remain affordable to Moderate Income Households. 11. Covenants Running with the Land. (a) Truster hereby subjects the Property to the covenants and restrictions set forth in the Resale Restrictions. Truster hereby declares its express intent that the covenants and restrictions set forth in the Resale Restrictions shall be deemed covenants running with the land in perpetuity, shall pass to, and be binding upon all parties having any interest in the Property throughout the term of the Resale Restrictions. Each and every contract, deed, lease or other instrument covering, conveying or otherwise transferring the Property or any interest therein, as the case may be, shall conclusively be held to have been executed, delivered and accepted subject to the Resale Restrictions regardless of whether the other party or parties to such contract have actual knowledge of such Resale Restrictions. (b) The Truster and the City hereby declare their understanding and intent that: (i) the covenants and restrictions contained in the Resale Restrictions shall be construed as covenants running with the land pursuant to California Civil Code section 1468 and not as conditions which might result in forfeiture of title by Truster; (ii) the burden of the covenants and restrictions set forth in the Resale Restrictions touch and concern the Property in that the Truster's legal interest in the Property may be rendered less valuable thereby; and (iii) the benefit of the covenants and restrictions set forth in the Resale Restrictions touch and concern the land by enhancing and increasing the enjoyment and use of the Property by eligible purchasers, the intended beneficiaries of such covenants and restrictions. (c) All covenants and restrictions contained herein in the Resale Restrictions without regard to technical classification or designation shall be binding upon Truster for the benefit of the City and eligible purchasers and such covenants and restrictions shall run in favor of such parties for the entire period during which such covenants and restrictions shall be in force and effect, without regard to whether the City is the owner of any land or interest therein to which such covenants and restrictions relate. 21-10670/2725 85 8 248
12. Truster's Acknowledgement of Resale Restrictions. Truster hereby acknowledges and agrees that: (1) Truster hereby subjects the Property to certain restrictions and limits the price for which Truster may sell the Property and the persons to whom Truster may sell the Property. The Affordable Housing Cost and other provisions contained in the Resale Restrictions restrict the full benefits of owning the Property. Truster may not enjoy the same economic or other benefits from owning the Property that Trustor would enjoy if the Resale Restrictions did not exist. (2) Absent the provisions of the lnclusionary Ordinance and the prov1s1ons of the Resale Restrictions, the Property could not be made available to Moderate Income Households at the Affordable Housing Cost, including Truster. (3) Truster understands all of the provisions of the Resale Restrictions. In recognition of the acknowledgments and agreements stated in this Section 12, Truster accepts and agrees to the provisions of the Resale Restrictions with the understanding that upon the transfer of the Property, the Resale Restrictions will expire on _____ , 20_, and will remain in full force and effect as to the Property until such expiration date. Truster Initials Truster Initials 13. Non-Discrimination. (a) Truster covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the said property, nor shall Truster itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. (b) Truster and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Truster) or sale of the Property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or 21-10670/272585 9 249
segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (2) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under to through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (3) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." ( c) Nothing in this Section 13 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. (d) The covenants in this paragraph shall run with the land in perpetuity. 14. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Deed of Trust shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 21-10670/272585 10 250
15. Trustor has made certain representations and disclosures as a requirement under the Resale Restrictions in order to induce Beneficiary to approve the sale of the Property to Trustor. In the event that Trustor has made any material misrepresentation or failed to disclose any material fact regarding said transaction, Beneficiary at its option and without notice, shall have the right to declare a material breach of the Resale Restrictions and the Note. Beneficiary may make a written declaration of default and demand for sale as to paragraph No. 6 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 16. All covenants without regard to technical classification or designation shall be binding for the benefit of the Beneficiary and such covenants shall run in favor of the Beneficiary for the entire period during which some covenants shall be in force and effect, without regard to whether the Beneficiary is or remains an owner of any land or interest therein to which such right to exercise all the rights and remedies and to maintain any action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of those covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. 17. Upon default by Trustor in the obligations of the City Note, in the performance of any obligation under this Deed of Trust, the Resale Restrictions, or under the terms of any First Lender's Deed of Trust which is or appears to be prior or superior to this Deed of Trust, Beneficiary may declare all sums secured by this Deed of Trust immediately due and payable by delivering to Trustee of a written declaration of default and demand for sale and a written notice of default and election to sell the Property. Default in the payment of any indebtedness secured by this Deed of Trust, in the obligation of the Note, or in the performance of any agreement under this Deed of Trust constitutes a default only under this Deed of Trust and the Note and does not constitute a default under the First Deed of Trust. Trustee shall cause the notice of default to be recorded. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note, and all documents evidencing any additional expenditures secured by this Deed of Trust. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder qualified under said Resale Restrictions and this Deed of Trust in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate 21-10670/272585 11 251
stock securing the obligations secured hereby, and Truster waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the First Lender Deed of Trust secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 18. Truster shall keep the Property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the Property at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the Property without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with the Property and not to permit any mechanic's lien against the Property; to comply with all laws affecting the Property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon the Property in violation of the law; to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of the Property may be reasonably necessary; and to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. 19. Truster shall provide, and maintain in force at all times with respect to the Property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefore shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any such insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefore and, in the event any such insurance policy and evidence of the payment of the premium therefore are not so delivered by Truster to Beneficiary, Truster by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Truster and without releasing Truster from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any 21-10670/272585 12 252
information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Truster, or (b) to allow Truster to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Truster is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Truster for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds shall either be applied for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 20. Truster shall pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting the Property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment, (c) when done, all encumbrances, charges and lines, with interest, on the Property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. 21. Should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Truster and without releasing Truster from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the Property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by 21-10670/272585 13 253
this Deed of Trust, or the rights or powers of Beneficiary or Trustee, ( c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Truster agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 22. Truster shall appear in and defend any action or proceeding purporting to affect the security hereof or the Property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Truster so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in the Property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 23. Truster shall pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 24. Should Truster or any successor in interest to Truster in the Property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate the Property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 25. Any award, settlement or damages for injury or damages to the Property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to the Property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 26. By accepting payment of any sums secured by this Deed of Trust after its due date, or by making any payment, performing any act on behalf of Truster, that Truster was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare a default for failure so to pay. 21-10670/272585 14 254
27. At any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of the Property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of the Property, Trustee may: (a) reconvey any part of the Property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 28. The lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 29. As additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the Property for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or ( c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Deed of Trust, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Deed of Trust. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Deed of Trust as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Deed of Trust. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the Property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the Property, make, cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any 21-10670/272585 15 255
part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of the Property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of the Property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default nor affect sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 30. If the security of this Deed of Trust is a leasehold estate, the Truster agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"' (b) Truster shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Truster will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Truster agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Truster further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this 21-10670/272585 16 256
Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 31. Trustor waives, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 32. Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where the Property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 33. This Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 34. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with the Property of this Deed of Trust, including changing Beneficiary's records, pertaining to this Deed of Trust in connection with the transfer of the Property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 35. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 21-10670/272585 17 257
36. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. Dated: -------Dated: -------Dated: -------21-10670/272585 18 TRUSTOR By: __________ _ HOUSING AUTHORITY OF THE CITY OF HUNTINGTON BEACH By: __________ _ Deputy Director of Community Development CITY OF HUNTINGTON BEACH By: __________ _ Deputy Director of Community Development APPROVED AS TO FORM: By: _____________ _ City Attorney 258
21-10670/279181 EXHIBITD TO DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT FOR 17532 CAMERON LANE, HUNTINGTON BEACH (Density Bonus and Affordable Housing Agreement Release Agreement) -15-259
RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) This Unit Release is recorded at the request and for the benefit of the City of Huntington Beach and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 27383. RELEASE OF DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT This RELEASE (the "Release") is being entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City"), and S.V.G. Property Fund, LLC, a California limited liability company (the "Owner"). City and Owner are hereinafter sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS: A. City is a municipal corporation and charter city organized and existing pursuant to the Constitution and laws of the State of California. B. Owner and/or its successors and assigns is the owner in fee of that certain real property located at 17532 Cameron Lane, Huntington Beach, and more particularly described in the legal description attached hereto as Exhibit "A" (the "Property"). C. On or about _____ , 2022, Owner and City entered into that certain Density Bonus and Affordable Housing Agreement (the "Affordable Housing Agreement") relating to the Property, recorded on _____ , 2022, as Instrument No. _____ of the Official Records for Orange County, California. Pursuant to the Agreement, Owner has developed the Property as an eighteen (18) unit residential community to be subdivided as a condominium development. Further, the Owner agreed to include in the Project two (2) units that will be sold at an Affordable Housing Cost to Moderate Income Households, consisting of two (2), two-bedroom units, with the remaining units to be sold at market prices. D. Pursuant to the Affordable Housing Agreement, when the Owner has sold all of the Affordable Units on the Property pursuant to the terms and conditions of the Affordable Housing Agreement, Owner and City may execute and record or cause to be executed and recorded for the benefit of Owner and/or its successors and assigns this Release, whereupon the Property would be released from the terms and conditions of the Affordable Housing Agreement. 21-10670/279 I 85 -1-260
COVENANTS: Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, Owner and City agree as follows: 1. From and after the date that this Release is recorded, the Property shall be released from, not be burdened by any of the provisions of the Affordable Housing Agreement. 2. Nothing in this Release terminates or releases, or shall be deemed or construed to terminate or release, the Affordable Housing Covenant recorded against each Affordable Unit owned in fee by a Qualified Purchaser or said Qualified Purchaser's successor in interest or assignee. 3. This Release shall not constitute evidence of compliance with or satisfaction of any obligation of Owner to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the construction or operation of work on Property, or any part thereof. 4. No later than ten (10) days after receipt by Owner of a conformed copy of the executed Release from the Orange County Recorder's Office, Owner shall deliver a copy of said conformed copy to City at the address identified in the Affordable Housing Agreement for delivery of notices. IN WITNESS WHEREOF, City has executed this Release as of this __ day of., ATTEST: City Clerk APPROVED AS TO FORM: OFFICE OF HUNTINGTON BEACH CITY ATTORNEY MICHAELE. GATES, City Attorney MJ/ 21-10670/279185 CITY OF HUNTINGTON BEACH, a California municipal corporation By: ____________ _ Its: ------------Dated: ____ , 20_ -2-261
21-10670/279185 ATTACHMENT 1 TO UNIT RELEASE LEGAL DESCRIPTION OF RELEASED UNITlS) -3-262
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) On. _____________ _:;, before me, _____________ ~ Notary Publi< same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PEN AL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Notary Public 21-10670/279185 -4-263
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-376 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Eric Parra, Chief of Police
PREPARED BY:Ingrid Ono, Administrative Assistant
Subject:
Approve and authorize the execution of the Joint Agreement for the Operation, Maintenance
and Financial Management of the Orange County 800-Megahertz Countywide Coordinated
Communications System
Statement of Issue:
The updated Joint Agreement of the Operation, Maintenance and Financial Management of the
countywide 800 MHz communication system allows the City’s Police, Fire, Marine Safety and Public
Works to have access to the countywide coordinated communications system, which serves as the
County’s public safety radio system.
Financial Impact:
There is no financial impact from the approval of the Joint Agreement as this agreement does not
establish rates or fees for participating agencies. The County establishes fees for member agencies
as part of its annual budget process. Adequate funds are budgeted in the City’s General Fund
annually to pay the approximately $300,000 cost for use of the 800 MHz communication system. No
additional appropriation is needed.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the “Joint Agreement for the Operation,
Maintenance and Financial Management of the Orange County 800-Megahertz Countywide
Coordinated Communications System.”
Alternative Action(s):
Do not approve the agreement and direct staff accordingly.
Analysis:
On February 6, 1996, the Orange County Board of Supervisors approved the original Joint
Agreement for the Implementation and Operation of the OC 800 MHz Countywide Coordinated
Communications System (CCCS). The Sheriff-Coroner Department (Sheriff) operates and maintains
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Communications System (CCCS). The Sheriff-Coroner Department (Sheriff) operates and maintains
the 800 MHz CCCS, which provides centralized, interoperable voice radio communications for the
County and its 34 cities, including all public safety and public service agencies, as well as a number
of private, state and federal agencies that provide support to the above agencies and/or have
relevant communications requirements. The 800 MHz CCCS is funded by the CCCS partnership in
accordance with the financial requirements outlined in the Agreement. The original agreement
addressed city and County partnership responsibilities and financial obligations for the
implementation of the 800 MHz CCCS in Orange County. It was executed by the then 31 cities and
the Orange County Fire Authority (OCFA). The agreement was amended by the Board on June 24,
2003 to include the capital improvement cost-sharing agreement negotiated by the County with the
34 cities and OCFA and replaced the original Joint Agreement.
In March of 2005, the City Council approved a new Joint Agreement , which addressed post-
implementation issues regarding the operation, maintenance, and financial management of the
800MHz CCCS. In 2015, the City Council approved an amended Joint Agreement as the governing
board worked to rewrite the Joint Agreement as a whole, which is now being presented. The
proposed updated Joint Agreement establishes the technical, operational, and financial requirements
for all agencies participating in the CCCS. This includes establishing financial parameters for the year -
to-year cost and for the costs of necessary system upgrades in the future. This also includes
establishing Bylaws for the Governance Committee.
The updated Agreement was presented to the Governance Committee at the April 28, 2021
Governance Committee Meeting. The Governance Committee approved the updated and
recommended submitting to the Board for approval. The updated Agreement was presented to the
City Managers of the Partner Agencies to seek input and revisions. All revisions received were
incorporated into the document. The Partner Agencies, which include 34 Orange County cities,
OCFA, Orange County Transportation Authority, Orange County Lifeguards, Irvine Valley College
Police Department, Santa Ana Unified School District Police Department and Saddleback College
Police Department, have confirmed their continued participation in the CCCS.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Joint Agreement - Contract
2. Partner Agency Signature Authority
3. Signature Agreement
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ORANGE COUNTY
SHERIFF’S DEPARTMENT
800 MHz Countywide Coordinated Communications System (CCCS)
Governance Committee
CHAIR, Rob Houston, City Manager, City of Fountain Valley VICE CHAIR, Brian Wayt, Executive Director, Sheriff-Coroner Department
Jill Ingram, City Manager, City of Seal Beach Scott Stiles, City Manager, City of Garden Grove
Jim Sadro, City Manager, La Habra Kevin Onuma, P.E., Deputy Director, OC Public Works
Joel Golub, Chief Information Officer, County Executive Office
Technology Division, 840 North Eckhoff Street, Suite 104 Orange, CA 92868
August 12, 2021
City of Huntington Beach
Oliver Chi, City Manager
2000 Main St.
Huntington Beach, CA 92648
Dear Mr. Chi:
As you may know, the 800 MHz Governance Committee has been working on re-drafting the 800 MHz Joint
Agreement. After two years of work and input from our project teams and executive stakeholders, the
Governance Committee approved the new Joint Agreement, authorizing the Sheriff to present to the Orange
County Board of Supervisors for approval.
The newly written Joint Agreement provides improved guidelines for the enhanced operations and fiscal
management of the 800 MHz Countywide Coordinated Communication System (CCCS). The new Joint
Agreement also establishes Governance Committee Bylaws.
The Orange County Board of Supervisors approved the newly written Joint Agreement on June 22, 2021. The
next step is for the Partner Agencies to request approval and adoption of the attached 800 MHz Joint
Agreement by the Partner Agency Governing Authorities. Due to a large number of Partner Agencies, the
signature page for your City may be separate from the other Partner Agencies. Once all Partner Agencies
have signed off and returned their documents to us, the new Joint Agreement will be put into effect.
For your convenience, please see the attached Agenda Staff Report and the supporting documents, that the
OC Sheriff’s Department provided to the Board providing the background to this project and our
recommended actions. If you have questions or concerns, please contact myself or Stephen Barteau
at sbarteau@ocsd.org or (714) 704-7969.
As always, thank you for your ongoing support.
Sincerely,
Rob Houston, Chair
800 MHz CCCS Governance Committee
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IN WITNESS WHEREOF, the Partner agencies hereto have set their hands and seals on the date
set forth opposite their respective signatures on identical counterparts of this instrument, each which
shall for all purposes be deemed an original thereof.
[Name of Partner Agency, ie City of Anaheim]
By:________________________
[Governing Authority authorized signature ex. City Council Chairperson or City Manager]
Dated: _____________________
Approved as to From
By:________________________
City Attorney
Attest:_____________________
[Clerk of Authority]
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-373 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Ursula Luna-Reynosa, Director of Community Development
PREPARED BY:Robert Ramirez, Economic Development Project Manager
Subject:
Public Hearing to consider acceptance of the Five-Year Economic Development Subsidy
Report for Surf City Auto Group II, Inc. Sales Tax Sharing Agreement
Statement of Issue:
Government Code Section 53083 mandates certain requirements of local agencies prior to approving
economic development subsidies, as well as during the term of such subsidies. One requirement is
that not less than five years after the approval of an economic development subsidy, a report (the
“Five-Year Subsidy Report”) containing specific information shall be made available to the public via
the City’s website and at a City Council public hearing. In July 2017, the City approved a Sales Tax
Sharing Agreement (the “Agreement”) with Surf City Auto Group II, Inc. The Five-Year Subsidy
Report is attached.
Financial Impact:
A fiscal impact was associated with the original action to approve the Agreement. However, there is
no fiscal impact to receive and file this Five-Year Subsidy Report.
Recommended Action:
A) Open the public hearing and receive written and oral testimony; and,
B) Receive and file the “Five-Year Economic Development Subsidy Report Pursuant to California
Government Code Section 53083 for a Sales Tax Sharing Agreement by and Between the City of
Huntington Beach and Surf City Auto Group II, Inc.,” in compliance with Government Code Section
53083.
Alternative Action(s):
Do not receive and file the Five-Year Subsidy Report.
Analysis:
The City has used sales tax sharing agreements as an economic incentive to help attract new
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businesses and retain existing businesses. Surf City Auto Group II, Inc. (Surf City Auto) approached
the City in 2017 expressing interest in expanding the existing Chrysler, Jeep, Dodge, Ram dealership
located at 16555 Beach Boulevard, and building a new stand-alone Jeep dealership at 16701 Beach
Boulevard to accommodate growing sales of Jeep vehicles. To help facilitate the expansion that
would in turn increase car sales, the City negotiated a sales tax sharing agreement (Agreement) with
Surf City Auto.
The Agreement established that the sales tax of all Surf City Auto sales are retained by the City up to
an annual base sales tax amount of $1,681,797, increasing by 1% each subsequent year. Any
additional sales tax above the base is split 50% to the City and 50% to Surf City Auto. The subsidy
was approved in July 2017 and the Agreement commenced in December 2018 following the opening
of the new Jeep dealership. The economic subsidy enabled Surf City Auto to expand operations at its
original location and build a new stand-alone Jeep dealership with a private investment of $3.3
million. This investment went toward design, construction, furnishing, and signage.
Car dealerships are the largest sales tax generators in the City with annual sales tax revenue
estimated to be between $8-9 million. Despite unprecedented changes to car purchases as a result
of COVID-19, chip shortages, and low inventory, the Agreement has been revenue positive with Surf
City Auto generating over $220 million of annual gross sales, which amounts to $2.2 million of annual
sales tax. From 2018 through 2021, the City received approximately $7.2 million of sales tax revenue
from Surf City Auto, of which approximately $6.4 million has been retained by the City and almost
$785,000 has been rebated to Surf City Auto.
On January 1, 2014, the State approved Assembly Bill 562 (AB 562), a law that requires local
agencies to disclose certain information, make it available to the public, and conduct a public hearing
prior to approving an economic development subsidy. The bill was codified as Section 53083 of the
Government Code and requires the following information, as applicable:
1) The name and address of all corporations or any other business entities, except for sole
proprietorships, that are beneficiary of the economic development subsidy.
2) The start and end dates and schedule for economic development subsidy.
3) A description of the economic development subsidy, including the estimated total
amount of the expenditure of public by, or of revenue lost to, the local agency as a result of
the economic development subsidy.
4) The net tax revenue accruing to the local agency as a result of the economic
development subsidy.
5) The number of jobs created by the economic development subsidy, broken down by full
-time, part-time, and temporary positions.
In 2017, before approving the Agreement with Surf City Auto, the Council held a public hearing and
disclosed the information above. The staff report, the Agreement, and the original subsidy report
from that public hearing are attached (Attachment #1).
An additional requirement of the law is that a local agency that approved an economic development
subsidy prepare a report and make it available to the public via the City’s website and at a public
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hearing within five years of the approval of the economic development subsidy. The report must
include the items listed above. The City has prepared the Five-Year Subsidy Report (Attachment #2)
which includes the following key points:
·The Agreement term is for twenty years (through November 30, 2038) or can be terminated
any time after ten years upon written notice by Surf City Auto;
·The City has retained $6,436,646 of total sales tax revenues;
·The City has provided Jeep with $784,694 of sales tax rebates;
·A total of 25 full-times jobs and 75 temporary construction jobs were created in association
with the economic subsidy.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(4), government fiscal activities that do not result in a
physical change in the environment and do not commit the lead agency to any specific project, do not
constitute a project. Therefore, these activities are exempt in accordance with CEQA Guidelines
Section 1506(c)(3).
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. Original Staff Report, Subsidy Report, and Sales Tax Agreement Between the City of
Huntington Beach and Surf City Auto Group, II, Inc.
2. Five-Year Economic Development Subsidy Report Pursuant to Government Code Section
53083 for Sales Tax Sharing Agreement by and Between the City of Huntington Beach and Surf
City Auto Group, II, Inc.
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City of Huntington Beach 1 July 10, 2016
ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR A SALES TAX SHARING AGREEMENT
BY AND BETWEEN CITY OF HUNTINGTON BEACH
AND SURF CITY AUTO GROUP II, INC.
Pursuant to Government Code Section 53083, the City Council of the City of Huntington Beach must
hold a noticed public hearing and, prior to the public hearing, provide all of the following information in
written form and available to the public and through the City’s website regarding a proposed economic
development subsidy to be provided by the City pursuant to a Sales Tax Sharing Agreement by and
between the City of Huntington Beach and Surf City Auto Group II, Inc. (“Agreement”). Notice was
published on the City’s website for a public hearing to be held on July 17, 2017.
The purpose of this report is to provide the information required pursuant to Government Code Section
53083 in regards to the Agreement. This report shall remain available to the public and posted on the
City’s website until the end date of the economic development subsidy, as further described in Number
2 below.
1. The name and address of all corporations or any other business entities, except for sole
proprietorships, that are the beneficiary of the economic development subsidy.
The Agreement is with Surf City Auto Group II, Inc., who will construct, own and operate a new Jeep
dealership that will benefit from the economic development subsidy:
Surf City Auto Group II, Inc.
16701 Beach Boulevard
Huntington Beach, CA 92647
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
If the Agreement is approved by the City Council, the start date of the economic development
subsidy will be on or around August 1, 2017 (or when the dealership opens) and the end date will be
no later than 20 years after the start date, on or around August 1, 2037. The economic
development subsidy will be paid quarterly, within 30 days of the end of each quarter.
3. A description of the economic development subsidy, including the estimated total amount of the
expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic
development subsidy.
The economic development subsidy is equal to fifty percent (50%) of the sales tax revenue received
by the City from Surf City Auto Group II, Inc., after the existing base sales tax received by the City.
The existing base sales tax is defined as those Jeep sales for the City’s fiscal year 2016, which is
estimated at $1,681,797, and increased by 1% per year.
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City of Huntington Beach 2 July 10, 2016
4. A statement of the public purpose for the economic development subsidy.
Rick Evans has owned and operated the Chrysler Jeep Dodge Ram (CJDR) dealership on Beach
Boulevard for 25 years. In 2013, Pete Shaver joined Rick Evans as owner of the CJDR dealership. The
CJDR dealership operates out of a newly renovated facility at 16555 Beach Boulevard as well as the
4 acre site at 16701 Beach Boulevard (Site), owned by Rick Evans, due to the large volume of new
vehicle inventory . In addition, the CJDR dealership leases offsite parking for additional new vehicle
inventory.
Surf City Auto Group II, Inc. has the opportunity to add a stand-alone Jeep dealership at the Site.
This will require a $3 million renovation to meet Jeep’s dealership image and space guidelines and a
$25 million parking garage, which will be constructed half on the 16555 Beach Boulevard and half on
the Site. Additionally, the Jeep dealership will be obligated to add 5,400 new Jeep sales over a three
year period.
Surf City Auto Group II, Inc. has requested to enter into the Agreement to assist in defraying the
significant cost of remodeling the dealership and moving the Jeep component of the existing
dealership to the 16701 Beach Boulevard site
Operations of the new dealership are expected to generate significant incremental sales activity,
projected at an average of $139 million a year for the first five years, and to increase sales tax to the
City by approximately $31,359,000 over the term of the proposed Agreement. The current assessed
value of the Site is $5,740,000 and it is projected that the value of the Site will have an assessed
value of $21,240,000, or a $15,500,000 increase.
5. The projected tax revenue to the local agency as a result of the economic development subsidy.
Projections indicate that, over the 20 year period of the sales tax sharing agreement, roughly
$16,058,000 in present value dollars in additional sales tax revenue could be received by the City.
Of this amount, the City would pay Surf City Auto Group II, Inc. approximately $8,029,000 in present
value terms.
6. The estimated number of jobs created by the economic development subsidy, broken down by
full-time, part-time and temporary positions.
The City anticipates the construction and operation of the new dealership will yield a minimum of 50
full- and part-time jobs and approximately 60 temporary new jobs during the construction.
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FIVE-YEAR ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR A SALES TAX SHARING AGREEMENT
BY AND BETWEEN
THE CITY OF HUNTINGTON BEACH
AND
SURF CITY AUTO GROUP II, INC.
The following Five Year Report has been prepared pursuant to California Government Code Section
53083. Section 53083 requires that for economic development subsidy agreements approved on or
after January 1, 2014, the City must hold a public hearing within five years to provide an update on the
project. As required, this report reiterates details of the sales tax sharing agreement (Agreement)
between the City of Huntington Beach and Surf City Auto Group II, Inc. and provides information on
subsidy payments to date.
1. The name and address of all corporations or any other business entities, except for sole
proprietorships, that are the beneficiary of the economic development subsidy.
Surf City Auto Group II, Inc. (Surf City Auto)
Pete Shaver, President
16555 and 16701 Beach Blvd.
Huntington Beach, CA 92647
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The agreement was executed on July 17, 2017, but reimbursement did not commence until
December 2018, shortly after the completion of the stand-alone Jeep dealership. The subsidy is
for 20 years and terminates on November 30, 2038, or it can be terminated any time after ten
years upon written notice by Surf City Auto.
3. A description of the economic development subsidy, including the estimated total amount of
the expenditures of public funds by, or of revenue lost to, the local agency as a result of the
economic development subsidy.
The economic development subsidy is equal to fifty percent (50%) of the sales tax revenue
received by the City from Surf City Auto in excess of $1,681,797 (base amount) for the first year,
increasing by 1% each subsequent year. To date, the full amount paid by the City to Surf City
Auto as part of the economic development subsidy is $784,694 over the past 4.25 years.
4. The net tax revenue accruing to the local agency as a result of the economic development
subsidy.
The Agreement has resulted in substantial sales tax revenue for the City. Annual taxable sales
for Surf City Auto since 2017 is $722,134,018. Thus far, Surf City Auto has generated $7,221,340
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in sales tax revenue. As shown below, the City has retained $6,436,646 of the total sales tax
revenue.
Fiscal Year* Sales Tax
Revenue
Sales Tax
Rebate
City
Revenue**
FY 2018-2019 $1,645,215 $0 $1,645,215
FY 2019-2020 $2,392,231 $338,315 $2,053,916
FY 2020-2021 $2,625,515 $446,379 $2,179,136
FY 2021-2022*** $558,379 TBD $558,379
TOTAL $7,221,340 $784,694 $6,436,646
* Q1 (Oct-Dec), Q2 (Jan-Mar), Q3 (Apr-Jun), Q4 (Jul-Sep)
** Includes annual base of $1,681,797 (increases 1% annually)
*** Payments for Q2, Q3, and Q4 not yet reported
Additionally, the property value has increased due to site improvements, with an assessed value
greater than $8.1 million. The City’s share of property taxes received by the County of Orange
increased from $9,762 (FY 2017-18) to $12,221 (FY 2021-22), a difference of $2,459.
5. The number of jobs created by the economic development subsidy, broken down by full-time,
part-time, and temporary positions.
Surf City Auto has hired 25 full-time workers since completing the stand-alone Jeep dealership
and approximately 75 workers were hired during construction.
371
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-368 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Ursula Luna-Reynosa, Director of Community Development
PREPARED BY:Jimmy Hoang, Code Enforcement Supervisor
Subject:
Conduct Public Hearing for the 2022 Annual Weed Abatement Program and authorize the
Director of Public Works to proceed with abatement
Statement of Issue:
On April 5, 2022, the City Council adopted Resolution No. 2022-11 declaring weeds and rubbish on
certain vacant, undeveloped property to be a nuisance. Pursuant to the resolution, a public hearing
must be held before staff can abate these nuisance conditions on private properties at the owner’s
expense.
Financial Impact:
Funds in the amount of $12,000 are budgeted in Weed Abatement, Account No. 10060301.69450, for
the abatement of public and private properties. Costs for City-performed abatement of private
properties are reimbursed to General Fund Account No. 10000100.47415 via a one-time special
assessment added to the Orange County property tax roll of each parcel cleared.
Recommended Action:
A) Open a public hearing for any objections to the proposed removal of weeds and rubbish; and,
B) Authorize the Director of Public Works to proceed with the abatement of the nuisance.
Alternative Action(s):
Postpone the hearing and direct staff to modify the annual weed abatement schedule.
Analysis:
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File #:22-368 MEETING DATE:5/3/2022
On April 5, 2022, the City Council adopted Resolution No. 2022-11 declaring that certain weeds,
refuse, and rubbish on public and private properties are a public nuisance, which should be abated,
as provided in California Government Code section 39501. The City cannot commence removal of
weeds, refuse, and rubbish from private property at the owner’s expense until a public hearing has
been held to consider any objections to this process. The Resolution adopted a public hearing date
for this purpose of May 3, 2022.
The Resolution requires that the private parcels be posted with a notice and that the posting be
completed at least 10 days prior to this hearing. Posting was completed by April 22, 2022; the
Affidavit of Posting is attached. Additionally, staff mailed a letter via regular U.S. mail service to the
owner of record of each parcel to inform them of this public hearing and of the requirement to clear
their property.
If a private property owner is unable or unwilling to clear their property by their own means, staff will
complete the task. If the City clears the property, the private property owner is billed for the City’s cost
as a one-time special assessment on their property tax bill. The County of Orange then remits the
funds back to the City as part of their regular property tax collection process.
Environmental Status:
The removal of weeds, refuse, and rubbish from undeveloped private properties is categorically
exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section
15301(h), which exempts the maintenance of existing landscaping and native growth.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2022-11
2. Affidavit of Posting Notice to Destroy Weeds
3. 2022 Notice to Destroy Weeds and Remove Rubbish and Refuse
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NOTICE TO
DESTROY WEEDS
AND REMOVE
RUBBISH AND
REFUSE
NOTICE IS HEREBY GIVEN THAT ON THE 5TH DAY OF APRIL 2022, THE CITY COUNCIL, CITY OF
HUNTINGTON BEACH, PASSED RESOLUTION NO. 2022-11.
DECLARING THAT NOXIOUS OR DANGEROUS WEEDS WERE GROWING UPON OR IN FRONT OF THE
PROPERTY ON THIS STREET, AND THAT RUBBISH AND REFUSE WERE UPON OR IN FRONT OF
PROPERTY ON THIS STREET IN THE CITY OF HUNTINGTON BEACH AND MORE PARTICULARLY
DESCRIBED IN THE RESOLUTION, AND THAT THEY CONSTITUTE A PUBLIC NUISANCE WHICH MUST
BE ABATED BY THE REMOVAL OF WEEDS, RUBBISH AND REFUSE. OTHERWISE, THEY WILL BE
REMOVED AND THE NUISANCE ABATED BY THE CITY AND COST OF REMOVAL ASSESSED UPON
THE LAND FROM OR IN FRONT OF WHICH THE WEEDS, RUBBISH AND REFUSE ARE REMOVED AND
WILL CONSTITUTE A LIEN UPON SUCH LAND UNTIL PAID. REFERENCE IS HEREBY MADE TO THE
RESOLUTION FOR FURTHER PARTICULARS. A COPY OF SAID RESOLUTION IS ON FILE IN THE
OFFICE OF THE CITY CLERK.
ALL PROPERTY OWNERS HAVING ANY OBJECTIONS TO THE PROPOSED REMOVAL OF THE
WEEDS, RUBBISH, REFUSE, AND DIRT ARE HEREBY NOTIFIED TO ATTEND A MEETING OF THE CITY
COUNCIL, CITY OF HUNTINGTON BEACH, TO BE HELD ON THE 3RD DAY OF MAY AT THE HOUR OF
6:00 P.M. OR AS SOON THEREAFTER AS POSSIBLE, WHEN THEIR OBJECTIONS WILL BE HEARD
AND GIVEN DUE CONSIDERATION.
DATED THIS 11TH DAY OF APRIL 2022
SEAN CRUMBY, P.E.
DIRECTOR OF PUBLIC WORKS
(SUPERINTENDENT OF STREETS)
CITY OF HUNTINGTON BEACH
IF YOU HAVE QUESTIONS REGARDING THIS NOTICE PLEASE CONTACT (714) 375-5155
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-380 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Brittany Mello, Administrative Services Director
PREPARED BY:Brittany Mello, Administrative Services Director
Subject:
Adopt Resolution No. 2022-25 to appoint Alfred Zelinka as City Manager and approve the
Employment Agreement; adopt Resolution No. 2022-24 amending the Non-Associated
Appointed Executive Management pay schedule to update the compensation range for the
City Manager
Statement of Issue:
After conducting a nationwide recruitment process, the City Council has identified Alfred (Al) Zelinka
as the preferred candidate to serve as the City of Huntington Beach’s next City Manager. The City
Council directed the recruiter and City Attorney to negotiate an employment agreement with Mr.
Zelinka to be presented for consideration in a regular meeting via resolution. The key terms of the
agreement are summarized below, which include a compensation rate of $320,000 per year. A
resolution to amend the appointed Non-Associated Executive Management salary schedule for the
City Manager position is also included.
Financial Impact:
The proposed salary is $320,000 per year with benefits. Additional details are located in Exhibit A of
Resolution No. 2022-25 (Attachment 1). The City Manager’s salary and benefits will be included in
the proposed Fiscal Year 2022-23 Budget.
Recommended Action:
A) Review and consider the proposed City Manager employment agreement, and if appropriate,
adopt Resolution No. 2022-25, “A Resolution of the City Council of the City of Huntington Beach
Appointing Alfred Zelinka as City Manager;” and
B) Adopt Resolution No. 2022-24, “A Resolution of the City Council of the City of Huntington Beach
Modifying the Non-Elected Non-Represented Employees Pay Schedule to Amend the Compensation
for the City Manager.”
Alternative Action(s):
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File #:22-380 MEETING DATE:5/3/2022
Do not approve the employment agreement or proposed resolutions, and provide staff with alternate
direction.
Analysis:
The City Council has completed a nationwide recruitment to fill the position of Huntington Beach City
Manager. The recruitment process began in November 2021, when City Manager Oliver Chi
announced his resignation. The City retained Dave Morgan of Ralph Andersen & Associates to
conduct the recruitment. During that period, Sean Joyce has been serving as the Interim City
Manager since December 20, 2021.
To assist in the recruitment process, the City Council created a City Manager Recruitment
Subcommittee comprised of Mayor Barbara Delgleize, Council Member Natalie Moser, and Council
Member Rhonda Bolton. The Subcommittee met with the recruitment team to craft the City Manager
recruitment brochure to help attract the most qualified candidates from across the nation.
The City Council and the recruiter reviewed the qualifications of each applicant, and selected the top
candidates to be interviewed on Wednesday, April 6, 2022. Following the first interview, the City
Council further narrowed the top candidates to be interviewed for a second time on Friday, April 8,
2022.
Following deliberation and careful consideration, the City Council selected Mr. Zelinka as the
preferred candidate. Mr. Zelinka has served as the City Manager of the City of Riverside since June
2018. He previously served as the Assistant City Manager and Community Development Director for
Riverside, as well as serving as the Community Development Director and Planning Manager for the
City of Fullerton. Altogether, Mr. Zelinka has 20 years of executive-level experience, aiming to make
a difference in communities and the profession. He is a Fellow of the American Institute of Certified
Planners, a Certified Main Street Manager, and is certified in Community Economic Development.
Mr. Zelinka holds a Bachelor of Science in Public Planning from Northern Arizona University and a
Master of Regional Planning from Cornell University.
Per City Council direction, the recruiter discussed a contract proposal with Mr. Zelinka, and the City
Attorney prepared an agreement that memorializes the terms and conditions of his employment with
the City. The key terms are outlined below and set forth in full in Exhibit A of the proposed Resolution
No. 2022-25 (Attachment 1).
The major provisions of the proposed employment agreement are as follows:
1.Contract Duration. Mr. Zelinka’s initial contract term is for a period of four years,
commencing on Monday, June 27, 2022. On the annual anniversary date of the agreement,
the term will be extended one additional year, unless a majority vote of the City Council directs
that the agreement not be extended.
2.Compensation. Mr. Zelinka’s starting salary will be $153.85 per hour, or $320,000 per year.
If the City Council approves salary adjustments to the appointed Non-Associated Executive
Management group, Mr. Zelinka’s salary will receive the same percentage increase. The City
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Council may approve additional merit-based salary increases at their discretion.
Additionally, Resolution No. 2022-24 is proposed to modify the appointed Non-Associated
Executive Management salary schedule to amend the compensation range for the City
Manager position, in accordance with the California Public Employees’ Retirement System
(CalPERS) requirements for a publicly-available pay schedule (Attachment 2).
3.Benefits. Mr. Zelinka will receive the same benefits provided to the appointed Non-
Associated Executive Management group, unless otherwise specified in the employment
agreement. These benefits are outlined in Exhibit A of the Non-Associated Employees Pay
and Benefits Resolution No. 2022-09, as approved by the City Council on March 15, 2022
(Attachment 3).
4.Terms of Separation.
a. The City Council may terminate Mr. Zelinka’s employment agreement without cause at
any time. If Mr. Zelinka is terminated without cause in the first eighteen months of
employment, he is entitled to twelve months’ severance pay, including salary and
benefits. This severance provision reduces to nine months’ severance in the
subsequent eighteen months of employment, and then further reduces to six months in
all remaining months of the agreement.
b. If Mr. Zelinka is terminated for cause or misconduct, the City is not obligated to provide
compensation or benefits, including severance.
5.Performance Reviews. The City Council will conduct an annual performance review of Mr.
Zelinka no later than June 30 each year of the agreement. The City Council may conduct
additional performance evaluations at any time.
Unlike some previous City Manager employment agreements, there are no housing-related
provisions included in this agreement.
If appointed, Mr. Zelinka’s first day with the City will be June 27, 2022, with Interim City Manager
Sean Joyce’s last day set to be June 26, 2022.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2022-25, “A Resolution of the City Council of the City of Huntington Beach
Appointing Alfred Zelinka as City Manager,” including Exhibit A - Employment Agreement
2. Resolution No. 2022-24, “A Resolution of the City Council of the City of Huntington Beach
Modifying the Non-Elected Non-Represented Employees Pay Schedule to Amend the
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Compensation for the City Manager” including Exhibit 1A - Non-Associated Appointed
Executive Management Salary Schedule
3. Exhibit A of Non-Associated Resolution 2022-09
4. Al Zelinka Resume
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 i
0NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION -
EXHIBIT A …………………………………... .................................................................... 1
SECTION I – PAY ........................................................................................................... 1
A. APPOINTED SALARY SCHEDULE ............................................................................... 1
B. ELECTED SALARY SCHEDULE ................................................................................... 1
C. PERFORMANCE BONUS ............................................................................................ 1
D. DIRECT DEPOSIT ..................................................................................................... 2
E. ASSIGNED VEHICLE/AUTO ALLOWANCE .................................................................... 2
SECTION II – HOURS OF WORK/OVERTIME/TIME OFF ............................................. 2
A. EXECUTIVE LEAVE ................................................................................................... 2
B. FLEXIBLE AND ALTERNATIVE W ORK SCHEDULES........................................................ 2
1. 5/40 Work Schedule .................................................................................................................... 2
2. 9/80 Work Schedule .................................................................................................................... 2
3. Alternative Work Schedule .......................................................................................................... 2
SECTION III – HEALTH AND OTHER INSURANCE BENEFITS ................................... 3
A. HEALTH INSURANCE ................................................................................................ 3
1. Medical, Dental and Vision Insurance......................................................................................... 3
2. City and Employee Paid Health Insurance ................................................................................. 3
3. Medical Cash Out ........................................................................................................................ 5
4. Section 125 Plan ......................................................................................................................... 5
B. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE ............................... 5
C. LONG-TERM DISABILITY INSURANCE ......................................................................... 5
D. CITY-PAID PHYSICAL EXAMINATIONS ........................................................................ 6
E. MISCELLANEOUS ..................................................................................................... 6
F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL
RETIREE SUBSIDY PLAN ................................................................................................. 6
G. POST-65 SUPPLEMENTAL MEDICARE COVERAGE ...................................................... 6
SECTION IV – RETIREMENT ......................................................................................... 7
A. BENEFITS ............................................................................................................... 7
1. Self-Funded Supplemental Retirement Benefit .......................................................................... 7
2. Medical Insurance for Retirees ................................................................................................... 7
B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRIBUTIONS AND REPORTING………...7
1. "Classic Member" Miscellaneous Retirement Benefits…………………………….………………7
2. "New Member" Miscellaneous Retirement Benefits………………….…………………………….8
3. "Classic Member" Safety Members Retirement Benefits…………………………………………..8
4. "New Member" Safety Retirement Benefits…………………….…………………………………...9
5. IRS Code 414(h)(2)………………………………………………………………………………. ....... 9
6. Pre-Retirement Optional Settlement 2 Death Benefit ................................................................. 9
7. Fourth Level of 1959 Survivor Benefits ....................................................................................... 9
8. VEBA Plan Requirements ........................................................................................................... 9
404
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 ii
SECTION V – LEAVE BENEFITS ................................................................................ 11
A. GENERAL LEAVE ................................................................................................... 11
1. Accrual ...................................................................................................................................... 11
2. Eligibility and Approval ............................................................................................................. 11
3. Leave Benefit Entitlements ....................................................................................................... 11
4. Conversion to Cash .................................................................................................................. 11
B. HOLIDAYS AND PAY PROVISIONS ............................................................................ 12
C. BEREAVEMENT LEAVE ........................................................................................... 12
D. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ........................................ 13
SECTION VI – RETIREE SUBSIDY MEDICAL PLAN .................................................. 13
SECTION VII – MISCELLANE OUS .............................................................................. 13
A. COLLECTION OF PAYROLL OVERPAYMENTS ............................................................. 13
B. UNIFORMS AND CALPERS REPORTING .................................................................. 13
EXHIBIT 1A – NON-ASSOCIATED APPOINTED SALARY SCHEDULE .................... 14
EXHIBIT 1B – NON-ASSOCIATED ELECTED SALARY SCHEDULE…………………15
EXHIBIT 2 – RETIREE MEDICAL PLAN ...................................................................... 16
EXHIBIT 3 – 9/80 WORK SCHEDULE ......................................................................... 20
EXHIBIT 4 – VOLUNTARY CATASTROPHIC LEAVE DONATION............................. 22
405
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 1
EXHIBIT A
SECTION I – PAY
A. Appointed Salary Schedule
Effective March 19, 2022, the parties agree that the salary schedule in Exhibit 1A reflects
the following modifications from the salary schedule in Resolution No. 2016-50:
1. The salary schedule will include seven (7) steps from A-G;
2. The steps will be five percent (5%) steps;
3. The salary ranges will be one percent (1%) apart;
4. Each job classification will be assigned a salary range by:
a. Locating the range on the new salary schedule with a Step F that is nearest to the
position’s current top step (Step E) without being less; and then,
b. Moving two ranges higher, thereby providing a wage increase of not less than two
percent (2%) for all appointed non-represented employees.
5. Each employee will be placed on the step (A-F) of their classification’s assigned salary
range that is nearest to their base salary step (A-E of the November 2, 2020, salary
schedule) without being less.
6. Once placed on the new, seven-step salary schedule, employees will be eligible to move
to the next step on their anniversary date (i.e., the date they are due for their next
evaluation) upon receipt of a satisfactory evaluation.
7. The City Manager is authorized to set the salaries of the appointed executive
management positions identified in Exhibit 1A at any rate at or below Step E of the
designated salary range. The City Manager is authorized to increase the salary by 5%
based upon performance at annual review and market data. However, no salary for a
new employee may be set above Step E at any time without City Council approval.
B. Elected Salary Schedule
1. All elected executive management positions shall receive the salaries as identified in
Exhibit 1B.
2. The City Council shall set the salaries of the elected executive management positions
identified in Exhibit 1B, at any rate within the designated salary range.
C. Performance Bonus
1. Appointed employees who are at Step G on the salary schedule are eligible for an
annual performance bonus of up to three percent (3%) of their base pay at the time of
their evaluation.
2. The annual performance bonus amount will be determined based upon the evaluation
of the employee’s performance. A completed performance evaluation with specific
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 2
recognition of outstanding performance must be attached to the Personnel Action Form
and sent to the Human Resources Division. The evaluation will also identify
performance goals and objectives.
The parties agree that to the extent permitted by CalPERS or law, the City will report the
compensation in this section as special compensation pursuant to Title 2 CCR, Section
571(a)(1) Bonus.
D. Direct Deposit
All Non-Associated employees are required to utilize direct deposit of payroll checks.
E. Assigned Vehicle/Auto Allowance
Appointed Department Heads, Contract Non-Department Heads, as well as the City Clerk,
City Treasurer, and City Attorney shall receive an auto allowance in the amount of two
hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus
reimbursement of out-of-town travel at the approved mileage rate. Appointed Department
Heads and the City Clerk, City Treasurer, and City Attorney shall have the option of an
assigned City vehicle in lieu of an auto allowance.
SECTION II – HOURS OF WORK/TIME OFF
A. Executive Leave
Non-Associated exempt employees shall not be eligible for overtime compensation. Exempt
department heads and contract non-department heads shall be credited with eighty (80)
hours of executive leave per calendar year.
B. Flexible and Alternative Work Schedules
1. 5/40 Work Schedule
The 5/40 work schedule shall be defined as working five (5), eight (8) hour days, Monday
through Friday each week, with a one-hour lunch during each work shift, totaling a forty
(40) hour work week.
2. 9/80 Work Schedule
The 9/80 work schedule, as outlined in Exhibit 3, shall be defined as working nine (9) days
for eighty (80) hours in a two-week pay period by working eight (8) days at nine (9) hours
per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during
each work shift, totaling forty (40) hours in each FLSA designated work week. The 9/80
work schedule shall not reduce service to the public, departmental effectiveness,
productivity and/or efficiency as determined by the City Manager or designee.
3. Alternative Work Schedule
Non-associated employees may elect any alternative work schedule approved by the City
Manager or designee.
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 3
SECTION III – HEALTH AND OTHER INSURANCE BENEFITS
A. Health Insurance
1. Medical, Dental, and Vision Insurance
The City shall continue to make group medical, dental, and vision benefits available to
all Non-Associated employees.
2. City and Employee Paid Health Insurance
The City and the employee shall pay for health insurance premiums for employees and
qualified dependent(s) effective the first of the month following the employee’s hire date.
The employee payroll deduction for premium contributions shall be deducted on a pre-
tax basis.
Such deductions shall be aligned with the effective date of coverage and the ending date
of coverage upon employment separation. The employee’s payroll deduction amount
shall begin no later than the beginning of the first full pay period following the effective
date of coverage and pro-rated for coverage through the end of the month in which
employment was separated.
i. Maximum Employer Contributions – The City’s maximum monthly employer
contributions for each employee’s health and other insurance premiums are set forth
as follows:
a. The City’s maximum monthly contribution to medical premiums for elected
non-represented positions will continue at the current City contribution rate.
Actual contributions for plan year 2022 based on premium costs are shown
in the rate sheet included herein.
b. Effective the beginning of the month following Council approval, the City’s
maximum monthly contribution to medical premiums for appointed non-
represented positions will increase as summarized in the table below.
c. Effective the pay period that includes January 1, 2023, the City’s maximum
monthly contribution to medical premiums will increase by $23.33 per month,
per medical plan and enrollment tier, up to, but not to exceed the monthly
plan premium cost.
d. The maximum City contribution shall be based on the employee’s enrollment
in each plan. If the employee enrolls in a plan wherein the costs exceed the
City contribution, the employee is responsible for all additional premiums
through pre-tax payroll deductions.
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 4
Plan Tier
Current City
Contribution //
Maximum for
Elected
Positions*
Maximum City Contributions
for Appointed Positions
Effective the Month
Following City
Council Approval
Effective the Pay
Period Including
January 1, 2023
Kaiser
Single 551.00 587.92 611.25
Two-Party 1,174.36 1,233.08 1,256.41
Family 1,370.04 1,438.54 1,461.87
Blue Shield
TRIO HMO
Single 621.00 662.61 685.94
Two-Party 1,174.36 1,233.08 1,256.41
Family 1,370.04 1,438.54 1,461.87
Blue Shield
HMO
Single 677.00 722.36 745.69
Two-Party 1,174.36 1,233.08 1,256.41
Family 1,370.04 1,438.54 1,461.87
Blue Shield
PPO
Single 740.00 789.58 812.91
Two-Party 1,335.78 1,402.57 1,425.90
Family 1,514.31 1,590.03 1,613.36
Blue Shield
HDHP
Single 567.00 590.33
Two-Party 1,163.00 1,186.33
Family 1,432.00 1,455.33
*Applies to elected non-represented positions for an indefinite period.
ii. “Safety Member” Health Premiums – Employer Contribution
Employees who are classified as a “safety member” by the California Public
Employees’ Retirement System (CalPERS) may have access to the medical plans
offered by CalPERS as contracted by the City. In accordance with eligibility provisions,
the Police Chief and the Fire Chief may elect to enroll in the CalPERS health insurance
program offered by the City.
The City’s maximum monthly employer contributions for the CalPERS health insurance
program will match the PORAC Region 2 premiums, but not to exceed the maximum
amounts indicated in the chart below. The amounts listed therein include the mandated
Public Employees’ Medical and Hospital Care Act (PEMHCA) contribution.
Non-Associated Safety Members
Plan Tier Current City
Contribution
Effective the Month
Following City
Council Approval
Effective the Pay
Period Including
January 1, 2023
Medical
Single 774.00 825.86 849.19
Two-Party 1,623.00 1,704.15 1,727.48
Family 2,076.00 2,179.80 2,203.13
iii. Employees shall not be entitled to the difference between the employer contribution
and the premiums for insurance plan(s) selected by the employee.
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 5
iv. Future Premiums
The City caps its contributions toward monthly group medical, dental, and vision plan
premiums by category (Single, Two-Party, and Family) as outlined in sections i and ii
above.
For the term of this agreement, and thereafter unless modified by negotiated
agreement of the parties, the City’s monthly contributions to medical, dental, and
vision insurance shall remain as specified for the 2022 and 2023 Health Premiums
and Contribution amounts, unless otherwise specified herein. The City’s contribution
caps will remain in place, even if premium increases result in these additional costs
being borne by the employee.
3. Medical Cash Out
If an employee is covered by a medical program outside of a City-provided program
(evidence of which must be supplied to Human Resources), the employee may elect to
discontinue City medical coverage and receive the monthly value of the City’s contribution
to the Kaiser, Employee-only medical premium offered to this unit. Safety Members will
receive the monthly value of the City’s contribution for the lowest-cost, employee only
medical coverage as described in Article III.A.2.(ii).
4. Section 125 Plan
Employees shall be eligible to participate in a City-approved Section 125 Flexible
Spending Account Plan the same as all other eligible employees, as provided by IRS law.
This plan allows employees to use pre-tax salary to pay for regular childcare, adult
dependent care, and/or medical expenses.
B. Life and Accidental Death and Dismemberment Insurance
Each Non-Associated employee shall be provided with $50,000 life insurance and $50,000
accidental death and dismemberment insurance paid for by the City. Each employee shall have
the option, at their own expense, to purchase additional amounts of life insurance and accidental
death and dismemberment insurance to the extent provided by the City’s current providers.
Evidence of insurability is contingent upon total participation in additional amounts.
C. Long-Term Disability Insurance
This program provides benefits for each incident of illness or injury after a waiting period of
thirty (30) calendar days during which the Non-Associated employee may use accumulated sick
leave, general leave, or executive leave pay. Subsequent to the thirty-(30) day waiting period,
the employee will be covered by an insurance plan paid for by the City providing sixty-six and
two-thirds percent (66 2/3%) of the first $12,500 of the employee’s basic monthly earnings up to
a maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury
or illness shall be to age sixty-five (65).
Days and months refer to calendar days and months. Benefits under the plan are integrated with
sick leave, Worker’s Compensation, Social Security and other non-private program benefits to
which the employee may be entitled. Disability is defined as: “The inability to perform all of the
duties of regular occupation during two years and thereafter the inability to engage in any
employment or occupation, for which they are fitted by reason of education, training or
experience.” Rehabilitation benefits are provided in the event the individual, due to disability,
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 6
must engage in other occupation. Survivor’s benefits continue the plan payment for three (3)
months beyond death. A copy of the plan is on file in the Human Resources Office.
D. City-Paid Physical Examinations
Non-Associated employees shall be provided, once every two years, with a City-paid physical
examination comparable to the current pre-placement class physical examination or reimbursed
the amount authorized for said physical examination. No more than one-half of the eligible
employees shall receive examinations in any one fiscal year. Said exam shall be comprehensive
in nature and shall include:
1. A complete medical history, physical exam and review of results by physician.
2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG.
3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test
for blood.
E. Miscellaneous
When a Non-Associated employee is on a leave of absence without pay for reason of medical
disability, the City shall maintain the City-paid insurance premiums during the period the
employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24)
months.
F. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy Plan
Employees who retire from the City after January 1, 2004, and are granted a retirement allowance
by the California Public Employees’ Retirement System and are not eligible for the City’s Retiree
Subsidy Medical Plan may choose to participate in City-sponsored medical insurance plans until
the first of the month in which they turn age sixty-five (65).
The retiree shall pay the full premium for City-sponsored medical insurance for themselves and/or
qualified dependents without any City subsidy.
Employees who retire from the City and receive a retirement allowance from the California Public
Employees’ Retirement System and are not eligible for the City’s Retiree Subsidy Medical Plan
and choose not to participate in City-sponsored medical insurance upon retirement permanently
lose eligibility for this insurance.
However, if a retiree who is not eligible for the City’s Retiree Subsidy Medical Plan chooses not
to participate in City-sponsored medical insurance plans because the retiree has access to other
group medical insurance, and subsequently loses eligibility for that group medical insurance, the
retiree and their qualified dependents will have access to City-sponsored medical insurance plans
reinstated.
Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or
qualified dependent turns age sixty-five (65).
G. Post-65 Supplemental Medicare Coverage
Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004, and all
future retirees who meet the criteria to participate in City-sponsored medical insurance, with or
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 7
without the Retiree Medical Subsidy Plan, may participate in City-sponsored medical insurance
plans that are supplemental to Medicare, after a contract is in place between the City and a health
insurance provider.
A retiree or qualified dependent must choose to participate in City-sponsored medical insurance
plans that are supplemental to Medicare beginning the first of the month in which the retiree or
qualified dependent turns age sixty-five (65).
The retiree shall pay the full premium to participate in City-sponsored medical insurance plans
that are supplemental to Medicare for themselves or qualified dependents without any City
subsidy.
Retirees or qualified dependents, upon turning age 65, who choose not to participate in the City-
sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility
for this insurance.
SECTION IV – RETIREMENT
A. Benefits
1. Self-Funded Supplemental Retirement Benefit
In the event a Non-Associated employee member elects Option #1, #2, #2W, #3, #3W or
#4 of the Public Employees’ Retirement law, the City shall pay the difference between such
elected option and the unmodified allowance which the member would have received for
their life alone as provided in California Government Code sections 21455, 21456, 21457,
and 21548 as said referenced Government Code sections exist as of the date of this
agreement. This payment shall be made only to the member (Non-Associated employee),
shall be payable by the City during the life of the member, and upon that member’s death,
the City’s obligation shall cease. Unless previously excluded by employment or resolution,
eligibility for this benefit is limited to employees hired before December 27, 1997.
2. Medical Insurance for Retirees
a. Upon retirement, whether service or disability connected, each Non-Associated
employee shall be entitled to cause self, spouse, and dependents to participate fully
in the City’s group health insurance program at the equivalent of the City’s group
premium rate in accordance with the provisions specified by Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at
employee’s expense and upon terms, conditions, and restrictions currently in effect.
b. As an alternative to the benefit described in the preceding paragraph, the City will
provide a financial contribution towards the cost of retiree medical premiums as
described in Section VI.
B. Public Employees’ Retirement System Contributions and Reporting
1. “Classic Member” Miscellaneous Members Retirement Benefits
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NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 8
a. Retirement Formula – The City shall provide all miscellaneous employees described
as classic members by the Public Employees’ Pension Reform Act of 2013 with that
certain retirement program commonly known and described as the “2.5% at age 55
plan,” which is based on the retirement formula as set forth in the California Public
Employees’ Retirement System (CalPERS), Section 21354 of the California
Government Code.
b. Classic Member Miscellaneous CalPERS Member Contribution – All miscellaneous
bargaining unit classic members shall pay to CalPERS as part of the required member
retirement contribution eight percent (8%) of pensionable income. This provision shall
not sunset.
c. One-Year Final Compensation – The City shall contract with CalPERS to have
retirement benefits calculated based upon the classic employee’s highest one year’s
compensation, pursuant to the provisions of Section 20042 (highest single year).
d. The obligations of the City and the retirement rights of employees as provided in this
Article shall survive the term of this resolution.
2. “New Member” Miscellaneous Members Retirement Benefits – For New Members within
the meaning of the California Public Employees’ Pension Reform Act of 2013 as defined in
California Government Code Section 7522.04(f).
a. Retirement Formula – New Members shall be governed by the two percent at age 62
(2% @ 62) retirement formula set forth in Government Code section 7522.20.
b. Final Compensation – Final compensation will be based on the highest annual
average compensation earnable during the 36 consecutive months immediately
preceding the effective date of retirement, or some other 36 consecutive month period
designated by the member.
c. New Member Miscellaneous CalPERS Member Contribution – Effective January 1,
2013, all new members, as defined by PEPRA and determined by CalPERS, shall
contribute one half (50%) of the normal cost as established by CalPERS each year in
its annual valuation for the City, as required by California Government Code Section
7522.30(c).
3. “Classic Member” Safety Members Retirement Benefits
a. Retirement Formula – The City shall provide all safety employees described as
“classic” members by the Public Employees’ Pension Reform Act of 2013 – “PEPRA”
with that certain retirement program commonly known and described as the “3% at
age 50 plan” which is based on the retirement formula as set forth in the California
Public Employees’ Retirement System (CalPERS), Section 21362.2 of the California
Government Code.
413
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 9
b. Classic Member Safety CalPERS Member Contribution – All safety employees
described as “classic” members shall pay to CalPERS as part of the required member
retirement contribution nine percent (9%) of pensionable income. This provision shall
not sunset.
c. One-Year Final Compensation – The City shall contract with CalPERS to have
retirement benefits calculated based upon the “classic” employee’s highest one year’s
compensation, pursuant to the provisions of Section 20042 (highest single year).
d. The obligations of the City and the retirement rights of employees as provided in this
Article shall survive the term of this resolution.
4. “New Member” Safety Members Retirement Benefits – For New Members within the
meaning of the California Public Employees’ Pension Reform Act of 2013.
a. Retirement Formula – New Members shall be governed by the two and seven tenths
percent at age 57 (2.7% @ 57) retirement formula set forth in Government Code
section 7522.25(d)
b. Final Compensation – Final compensation will be based on the highest annual
average compensation earnable during the 36 consecutive months immediately
preceding the effective date of retirement, or some other 36 consecutive month
period designated by the member.
c. New Member Miscellaneous CalPERS Member Contribution – All new members as
defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of
the normal cost, as established by CalPERS.
5. IRS Code Section 414(h)(2)
The City has adopted the CalPERS Resolution in accordance with IRS Code section
414(h)(2) to ensure that both the employee contribution and the City pickup of the required
member contribution are made on a pre-tax basis. However, ultimately, the tax status of
any benefit is determined by the law.
6. Pre-Retirement Optional Settlement 2 Death Benefit
Non-Associated employees shall be covered by the Pre-Retirement Optional Settlement 2
Death Benefit as identified in Section 21548 of the California Government Code when
approved by the City Council.
7. Fourth Level of 1959 Survivor Benefits
Non-Associated employees shall be covered by the Fourth Level of the 1959 Survivor
Benefit as identified in Section 21574 of the California Government Code.
8. VEBA Plan Requirements
a. Eligibility Defined
Effective December 23, 2009, all eligible non-associated employees with 25 years of
continuous service to the City of Huntington Beach will participate in the Plan. An
eligible employee is an employee who works twenty (20) or more hours per week and
414
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 10
receives benefits. Eligibility criteria may be amended upon a majority vote of non-
associated employees, as no cost is borne by the City.
b. Leave Payout Plan Contribution
Each eligible unrepresented management employee shall designate all leave payouts
to be rolled over to their VEBA Plan account based on the established range upon
separation from City employment.
c. Participant Account
A separate account is maintained for each contributing eligible non-associated
employee, which documents the employee’s contributions and disbursements.
Contributions to a VEBA plan account as well as any disbursements to cover
nonreimbursed, post-tax medical care expenses are both tax free. Eligible benefits
subject to reimbursement by the Plan shall be limited to long-term care expenses and
nonreimbursed medical premiums, co-pays, prescribed drug expenses and other
medical care costs as that term is defined by the Internal Revenue Code Section 213.
d. Administrative Fees
Any Plan administrative fees will be deducted from interest on the total Plan
investments.
An eligible non-associated employee’s Plan account is subject to a monthly
administrative fee for expenses related to recordkeeping, claims processing, and
claims reimbursement. The fee will first be deducted from interest on total plan
investments, and then deducted, if necessary, from the employee’s individual account.
e. Dispute Resolution
This Resolution and any disputes arising under or in connection with this Resolution
shall not be subject to any dispute resolution procedures in the City’s Personnel Rules,
nor shall this Resolution and any such dispute relating thereto be subject to the
jurisdiction of the City’s Personnel Commission for any reason whatsoever.
f. Indemnification
All non-associated employees agree to indemnify and hold the City of Huntington
Beach harmless against any claims made of any nature and against any suit instituted
against the City arising from this Resolution, including, but not limited to, claims arising
from an employee’s participation in VEBA or from any salary reduction initiated by the
City for VEBA contributions.
415
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 11
SECTION V – LEAVE BENEFITS
A. General Leave
1. Accrual
General leave may be used for any purpose, including vacation, sick leave, and personal
leave. General leave for non-associated employees shall be accrued as follows:
2. Eligibility and Approval
General leave must be pre-approved except for illness, injury or family sickness, which
may require a physician’s statement for approval. General leave accrued time is to be
computed from hiring date anniversary. Employees shall not be permitted to take general
leave in excess of actual time earned. Employees shall not accrue general leave in excess
of six hundred forty (640) hours. Employees may not use their general leave to advance
their separation date on retirement or other separation from employment.
3. Leave Benefit Entitlements
The City shall comply with all State and Federal leave benefit entitlement laws. An eligible
employee on an approved leave shall be allowed to use applicable earned Sick Leave,
General Leave, or Executive Leave for family or personal health issues. For more
information on employee leave options contact the Human Resources Office.
4. Conversion to Cash
a. Pay Off at Termination
An employee shall be paid for unused general leave upon termination of employment
at which time such terminating employee shall receive compensation at their current
salary rate for all unused, earned general leave to which they are entitled up to and
including the effective date of their termination.
b. Conversion to Cash
Two times during each fiscal year, each permanent employee shall have the option to
convert into a cash payment or deferred compensation up to a total of one hundred
and sixty (160) general leave benefit hours per fiscal year. The employee shall give
payroll two (2) weeks’ advance notice of their decision to exercise such option.
Years of Service Annual General Leave
Allowance
Biweekly General Leave
Allowance
First through Fourth Year 176 hours 6.77
Fifth through Ninth Year 200 hours 7.69
Tenth through Fourteenth Year 224 hours 8.62
Fifteenth Year and Thereafter 256 hours 9.85
416
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 12
c. Deferred Compensation Contribution at Time of Separation
The value of any unused earned leave benefits may be transferred to deferred
compensation at separation (including retirement), but only during the time that the
employee is actively employed with the City. The latest opportunity for such transfer
must be the beginning of the pay period prior to the employee’s last day of employment.
B. Holidays and Pay Provisions
1. Non-Associated employees shall receive the following legal holidays as of the first pay
period following adoption of the Non-Associated Resolution paid in full per the employee’s
regularly scheduled work shift:
(1) New Year’s Day (January 1)
(2) Martin Luther King Day (third Monday in January)
(3) Presidents Day (third Monday in February)
(4) Memorial Day (last Monday in May)
(5) Independence Day (July 4)
(6) Labor Day (first Monday in September)
(7) Veteran’s Day (November 11)
(8) Thanksgiving Day (fourth Thursday in November)
(9) The Friday after Thanksgiving
(10) Christmas Day (December 25)
In addition, all appointed positions shall receive the following holidays:
(11) Christmas Eve (December 24)
(12) New Year’s Eve (December 31)
2. Any day declared by the President of the United States to be a national holiday or by the
Governor of the State of California to be a state holiday and adopted as an employee
holiday by the City Council of the City of Huntington Beach.
3. The parties agree that the City shall issue an official City holiday calendar in January of
each year that will determine the dates that holidays are observed, following the
guidelines below:
a. City paid holidays which fall on Saturday shall be observed the preceding Friday,
and those falling on Sunday shall be observed the following Monday.
b. In the event that two consecutive City paid holidays fall on a Friday and Saturday,
the two holidays shall be observed on the preceding Thursday and Friday.
c. In the event that two consecutive City paid holidays fall on a Sunday and Monday,
the two holidays shall be observed on Monday and the following Tuesday.
C. Bereavement Leave
Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in
each instance of death in their immediate family. Immediate family is defined as a parent,
sibling, spouse, registered domestic partner, child, grandparent, grandchild, or wards of which
417
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 13
the employee is the legal guardian, recognizing all birth, marital, and other legal ties (i.e., step
relatives, in-laws, etc.).
D. Voluntary Catastrophic Leave Donation Program
Under certain conditions, an employee may donate leave time to another employee in need.
The program is outlined in Exhibit 4.
SECTION VI – RETIREE SUBSIDY MEDICAL PLAN
An employee who has retired from the City shall be entitled to participate in the City-sponsored
medical insurance plans in accordance with the Retiree Subsidy Medical Plan as outlined in Exhibit
2. Employees hired on or after December 1, 2009, shall not be eligible for this benefit.
SECTION VII – MISCELLANEOUS
A. Collection of Payroll Overpayments
In the event that a payroll overpayment is discovered and verified, and considering all reasonable
factors including the length of time that the overpayment was made and if and when the employee
could have reasonably known about such overpayment, the City shall take action to collect from
the employee the amount of overpayment(s). Such collection shall be processed by payroll
deduction over a reasonable period of time considering the total amount of overpayment.
In the event the employee separates from employment during the collection period, the final
amount shall be deducted from the last payroll check of the employee. If applicable, the balance
due from the employee shall be communicated upon employment separation if the last payroll
check does not sufficiently cover the amount due the City.
It shall be the responsibility of the employee and the City to periodically monitor the accuracy of
compensation payments or reimbursements due to the possibility of a clerical oversight or error.
The City reserves the right to also collect compensation overpayments caused by or the result of
misinterpretation of a pay provision by non-authorized personnel. The interpretation of all pay
provisions shall be administered by the City Manager or designee and as adopted by the City
Council. Unauthorized compensation payments shall not constitute a past practice (1/03/05).
B. Uniforms and CalPERS Reporting
The City provides uniforms to active duty employees in the classifications of Police Chief and Fire
Chief. These employees are required to wear a standard uniform for appearance, uniformity, and
public recognition purposes.
The City will report to the California Public Employees’ Retirement System (CalPERS) the
average annual cost of uniforms as special compensation for each eligible employee in
accordance with Title 2, California Code of Regulations, Section 571(a)(5).
418
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 14
EXHIBIT 1A
NON-ASSOCIATED APPOINTED EXECUTIVE MANAGEMENT SALARY SCHEDULE
Effective March 19, 2022*
Starting
Point Control
Point High
Point
Job
No Description Pay
Range A B C D E F G
EXECUTIVE MANAGEMENT
0591 City Manager 294 103.38 108.55 113.98 119.68 125.66 131.94 138.54
0029 Interim City Manager 289 98.36 103.28 108.44 113.87 119.56 125.54 131.82
DEPARTMENT HEADS
0592 Assistant City Manager 275 85.57 89.85 94.34 99.06 104.01 109.21 114.67
0015 Fire Chief 275 85.57 89.85 94.34 99.06 104.01 109.21 114.67
0011 Police Chief 275 85.57 89.85 94.34 99.06 104.01 109.21 114.67
0518 Chief Financial Officer 269 80.61 84.64 88.88 93.32 97.99 102.88 108.03
0589
Community Development
Director 269 80.61 84.64 88.88 93.32 97.99 102.88 108.03
0800
Director of Administrative
Services 269 80.61 84.64 88.88 93.32 97.99 102.88 108.03
0801
Director of Community &
Library Services 269 80.61 84.64 88.88 93.32 97.99 102.88 108.03
0010 Director of Public Works 269 80.61 84.64 88.88 93.32 97.99 102.88 108.03
CONTRACT NON-DEPARTMENT HEADS
0593 Chief Assistant City Attorney 261 74.44 78.17 82.08 86.18 90.49 95.01 99.76
0860 Deputy Dir. of Homelessness &
Behavioral Health Services
258 72.26 75.87 79.66 83.64 87.83 92.22 96.83
0845 Deputy Director of
Public Works
258 72.26 75.87 79.66 83.64 87.83 92.22 96.83
0900 Assistant Chief Financial
Officer
249 66.07 69.37 72.84 76.48 80.30 84.32 88.53
0850 Deputy Director of
Administrative Services
249 66.07 69.37 72.84 76.48 80.30 84.32 88.53
0855 Deputy Director of
Community & Library Services
249 66.07 69.37 72.84 76.48 80.30 84.32 88.53
0840 Deputy Director of
Community Development
249 66.07 69.37 72.84 76.48 80.30 84.32 88.53
0699 Deputy Community Prosecutor 206 43.07 45.22 47.48 49.86 52.35 54.97 57.72
*Per Resolution No. 2022-09
419
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 15
EXHIBIT 1B
NON-ASSOCIATED ELECTED EXECUTIVE MANAGEMENT SALARY SCHEDULE
Effective November 2, 2020*
Job
No Description Pay
Grade Starting
Point Control
Point High
Point
ELECTED OFFICIALS
0016 City Attorney NA0016 100.18 111.51 124.10
0017 City Clerk NA0017 69.94 77.85 86.66
0018 City Treasurer (Part-Time) NA0018 69.94 77.85 86.66
*Per Resolution No. 2020-80
420
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 16
EXHIBIT 2
RETIREE MEDICAL PLAN
An employee who has retired from the City shall be entitled to participate in the City sponsored
medical insurance plans and the City shall contribute toward monthly premiums for coverage in an
amount as specified in accordance with this Plan, provided:
A. At the time of retirement the employee has a minimum of ten (10) years of continuous full
time City service or is granted an industrial disability retirement; and
B. At the time of retirement, the employee is employed by the City; and
C. Following official separation from the City, the employee is granted a retirement allowance
by the California Public Employees’ Retirement System.
The City’s obligation to pay the monthly premium as indicated shall be modified downward
or cease during the lifetime of the retiree upon the occurrence of any one of the following:
1. On the first of the month in which a retiree or dependent reaches age 65 or on
the date the retiree or dependent can first apply and become eligible,
automatically or voluntarily, for medical coverage under Medicare (whether or
not such application is made) the City’s obligation to pay monthly premiums
may be adjusted downward or eliminated. Benefit coverage at age 65 under
the City’s medical plans shall be governed by applicable plan document.
2. In the event of the death of any employee, whether retired or not, the amount
of the retiree medical insurance subsidy benefit which the deceased employee
was receiving at the time of their death would be eligible to receive if they were
retired at the time of death, shall be paid on behalf of the spouse or family for
a period not to exceed twelve (12) months.
D. Schedule of Benefits
1. Minimum Eligibility for Benefits
With the exception of an industrial disability retirement, eligibility for benefits begins
after an employee has completed ten (10) years of continuous full time service with
the City of Huntington Beach. Said service must be continuous unless prior service
is reinstated at the time of their rehire in accordance with the City’s Personnel Rules.
Employees hired on or after December 1, 2009 shall not be eligible for this benefit.
2. Disability Retirees
Industrial disability retirees with less than ten (10) years of service shall receive a
maximum monthly payment toward the premium for health insurance of $121.
Payments shall be in accordance with the stipulations and conditions, which exist for
all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of
premium for employee only.
3. Marital Status – Married retirees eligible for benefits under the Retiree Medical
Subsidy Plan may each receive the benefit earned pursuant to Section 4 – Maximum
Monthly Subsidy Payments, whether enrolled individually as the plan enrollee or
whether enrolled as a dependent on any City-sponsored medical plan.
421
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 17
a. In the case where a retiree is married to a City employee (active or retired)
who is not an unrepresented/non-associated employee or retiree, this
provision shall remain applicable.
b. This provision shall apply to State of California registered domestic partners
the same as married spouses.
4. Maximum Monthly Subsidy Payments
Payment amounts may be reduced each month as dependent eligibility ceases due
to death, divorce or loss of dependent child status. However, the amount shall not
be reduced if such reduction would cause insufficient funds needed to pay the full
premium for the employee and the remaining dependents. In the event no reduction
occurs and the remaining benefit premium is not sufficient to pay the premium amount
for the employee and the eligible dependents, said needed excess premium amount
shall be paid by the employee.
All retirees, including those retired as a result of disability whose number of years of
service prior to retirement, exceeds ten (10) years of continuous full time service, shall
be entitled to maximum monthly payment of premiums by the City for each year of
completed City service as follows:
Maximum Monthly Payment
for Retirements After:
Years of Service
Subsidy
10 $121
11 136
12 151
13 166
14 181
15 196
16 211
17 226
18 241
19 256
20 271
21 286
22 300
23 315
24 330
25 344
422
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 18
MISCELLANEOUS PROVISIONS
A. Eligibility:
1. The effective start-up date of the Retiree Subsidy Medical Plan for the various
employee groups shall be the first of the month following retirement date.
2. A retiree may change plans, add dependents, etc., during annual open enrollment.
The Human Resources Office shall notify covered retirees of this opportunity each
year.
3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of
completed service with the City of Huntington Beach.
B. Benefits:
1. The Retiree Subsidy Medical Plan includes any medical plan offered by the City to
active and/or retired unrepresented/non-associated employees and retirees.
2. City Plans are the primary payer for active employees age 65 and over, with Medicare
the secondary payer. Retirees age 65 and over have no City Plan options and are
eligible only for Medicare.
3. Premium payments are to be received at least one month in advance of the coverage
period.
C. Subsidies:
1. The subsidy payments will pay for:
a. The Retiree Subsidy Medical Plan.
b. HMO.
c. Part A of Medicare for those retirees not eligible for paid Part A.
2. Subsidy payments will not pay for:
a. Part B Medicare.
b. Any other employee benefit plan.
c. Any other commercially available benefit plan.
d. Medicare supplements
D. Medicare:
1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit
quarters of Social Security will receive Part A of Medicare at no cost. Those without
sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay
for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of
Medicare is paid for by the participant.
423
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 19
2. When a retiree and their spouse are both 65 or over, and neither is eligible for paid
Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum
subsidy, whichever is less.
3. When a retiree at age 65 is eligible for paid Part A of Medicare and their spouse is not
eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age
65 is not eligible for paid Part A of Medicare and their spouse who is also age 65 is
eligible for paid Part A of Medicare, the subsidy shall be for the retiree’s Part A only.
E. Cancellation:
1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation
provisions apply:
a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated
on the first day of the month in which the retiree reaches age 65. If such retiree
was covering dependents under the Plan, dependents will be eligible for COBRA
continuation benefits effective as of the retiree’s 65th birthday.
b. Dependent coverage will be eliminated upon whichever of the following occasions
comes first:
1) After 36 months of COBRA continuation coverage, or
2) When the covered dependent reaches age 65 in the event such dependent
reaches age 65 prior to the retiree reaching age 65.
c. At age 65 retirees are eligible to make application for Medicare. Upon being
considered “eligible to make application,” whether or not application has been
made for Medicare, the Retiree Subsidy Medical Plan will be eliminated.
2. See provisions under “Benefits,” ”Subsidies,” and “Medicare” for those
retirees/dependents not eligible for paid Part A of Medicare.
3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-
payment of premium by means of a certified letter from Employee Benefits in
accordance with provisions of the Non-Associated Resolution.
4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty
(60) days shall be terminated from the Plan and shall not have reinstatement
rights.
424
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 20
EXHIBIT 3
9/80 WORK SCHEDULE
This work schedule is known as “9/80”. The 9/80 work schedule is designed to be in compliance with
the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with
the current rules, practices and/or procedures regarding work schedules and leave plans, then the
rules listed below shall govern.
9/80 WORK SCHEDULE DEFINED
The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week
pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8)
hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA
work week. The 9/80 work schedule shall not reduce service to the public, departmental
effectiveness, productivity and/or efficiency as determined by the City Manager or designee.
A. Forty (40) Hour FLSA Work Week
The actual FLSA workweek is from Friday at mid-shift (p.m.) to Friday at mid-shift (a.m.). No
employee working the 9/80 work schedule will be able to flex their Friday start time nor the
time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All
employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA
workweek is 12:00 noon Friday.
B. Two Week Pay Period
The pay period for employees starts Friday mid-shift (p.m.) and continues for fourteen (14)
days until Friday mid-shift (a.m.). During this period, each week is made up of four (4) nine
(9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours
equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for
the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which
is charged to work week two).
C. A/B Schedules
To continue to provide service to the public every Friday, employees are to be divided
between two schedules, known as the “A” schedule and the “B” schedule, based upon the
departmental needs. For identification purposes, the “A” schedule shall be known as the
schedule with a day off on the Friday in the middle of the pay period, or, “off on payday”, the
“B” schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or “working on
payday”. An example is listed below:
AM PM AM PM AM PM
F F S S M T W Th F F S S M T W Th F F
A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4
B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - -
425
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 21
D. A/B Schedule Changes
FLSA exempt employees may change A/B schedules at the beginning of any pay period with
supervisor or City Manager approval.
E. Emergencies
All employees on the 9/80 work schedule are subject to be called to work any time to meet
any and all emergencies or unusual conditions which, in the opinion of the City Manager, or
designee may require such service from any of said employees.
LEAVE BENEFITS
When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours
of eligible leave per workday shall be charged against the employee’s leave balance or eight (8)
hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual,
eligibility, request and approval requirements.
1. General Leave – As stated in the Non-Associated Resolution.
2. Sick Leave – As stated in the Non-Associated Resolution.
3. Executive Leave – As stated in the Non-Associated Resolution.
4. Bereavement Leave – As stated in the Non-Associated Resolution.
5. Holidays – As stated in the Non-Associated Resolution.
6. Jury Duty – The provisions of the Personnel Rules shall continue to apply, however, if an
FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday,
or Sunday, or on a City holiday, then the jury duty shall be considered the same as having
occurred during the employees day off work, therefore, the employee will receive no added
compensation.
426
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 22
EXHIBIT 4
VOLUNTARY CATASTROPHIC LEAVE DONATION
Guidelines
1. Purpose
The purpose of the voluntary catastrophic leave donation program is to bridge employees
who have been approved leave time to either return to work, long-term disability, or medical
retirement. Permanent employees who accrue vacation, general leave or compensatory time
may donate such leave to another permanent employee when a catastrophic illness or injury
befalls that employee or because the employee is needed to care for a seriously ill family
member. The leave-sharing Leave Donation Program is Citywide across all departments and
is intended to provide an additional benefit. Nothing in this program is intended to change
current policy and practice for use and/or accrual of vacation, general, or sick leave.
2. Definitions
Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the
employee or an employee's family member.
Family Member - For the purposes of this policy, the definition of family member is that defined
in the Family Medical Leave Act (child, parent, spouse or domestic partner).
3. Eligible Leave
Accrued compensatory, vacation or general leave hours may be donated. The minimum
donation an employee may make is two (2) hours and the maximum is forty (40) hours.
4. Eligibility
Permanent employees who accrue vacation or general leave may donate such hours to
eligible recipients. Compensatory time accrued may also be donated. An eligible recipient is
an employee who:
• Accrues vacation or general leave;
• Is not receiving disability benefits or Workers' Compensation payments; and
• Requests donated leave.
5. Transfer of Leave
The maximum donation credited to a recipient's leave account shall be the amount necessary
to ensure continuation of the employee's regular salary during the employee's period of
approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours
donated will be converted into a dollar amount based on the hourly wage of the donor. The
dollar amount will then be converted into accrued hours based on the recipient’s hourly wage.
An employee needing leave will complete a Leave Donation Request Form and submit it to
the Department Director for approval. The Department Director will forward the form to
Human Resources for processing. Human Resources, working with the department, will send
out the request for leave donations.
427
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 23
Employees wanting to make donations will submit a Leave Donation Form to the Finance
Department (payroll).
All donation forms submitted to payroll will be date stamped and used in order received for
each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of
time from donors. Any donation form submitted that is not needed will be returned to the
donor.
6. Other
Please contact the Human Resources Office with questions regarding employee participation
in this program.
428
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 24
Please submit this form to the Human Resources Office for processing.
Voluntary Catastrophic Leave Donation Program
Leave Request Form
Requestor, Please Complete
According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request
donated vacation, general leave or compensatory time.
MY SIGNATURE CERTIFIES THAT:
• A Leave of absence in relation to a catastrophic illness or injury has been approved by my
Department; and
• I am not receiving disability benefits or Workers' Compensation payments.
Name: (Please Print or Type: Last, First, MI)
Work Phone:
Department:
Job Title:
Employee ID#:
Requester Signature:
Date:
Department Director Signature of Support: Date:
Human Resources Office Use Only
End donation date will bridge to:
Long Term Disability
Medical Retirement beginning
Length of FMLA leave ending
Return to work
End donation date:
Administrative Services Director Signature: Date signed:
429
NON-ASSOCIATED EMPLOYEES PAY AND BENEFITS RESOLUTION
Exhibit A to Non-Associated Resolution No. 2022-09 25
Voluntary Catastrophic Leave Donation Program
Leave Donation Form
Donor, please complete
Donor Name: (Please Print or Type: Last, First, MI)
Work Phone:
Donor Job Title:
Type of Accrued Leave:
Vacation
Compensatory Time
General Leave
Number of Hours I wish to Donate:
Hours of Vacation
Hours of Compensatory Time
Hours of General Leave
I understand that this voluntary donation of leave credits, once processed, is irrevocable;
but if not needed, the donation will be returned to me. I also understand that this donation
will remain confidential.
I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation
Program for:
Eligible recipient employee's name (Last, First, MI):
Donor Signature:
Date:
Please submit to the Payroll/Finance Department.
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AL ZELINKA, FAICP, CMSM
C AREER SUMMARY
Al Zelinka is the City Manager (and former Assistant City Manager and Community Development Director) for the City of
Riverside, California. Prior to this, he was Community Development Director (and Planning Manager) for Fullerton,
California. Before serving the City of Fullerton, Al was Vice President with RBF Consulting and served as Principal of RBF
Consulting's Urban Design Studio. For the past thirty one years, Al’s professional practice has upheld his original career
objective: to “make a difference” in communities and the profession. He is a Fellow of the American Institute of Certified
Planners, is a Certified Main Street Manager, and is certified in Community Economic Development. Al has been highly
successful leading efforts for towns, cities, and developers that improve and/or revitalize neighborhoods, commercial districts,
downtowns, and corridors by working with community members in meaningful ways to facilitate desired investment and
achieve envisioned outcomes. Al has played an active part in well over 150 planning and development projects (nearly 30 of
which have received awards), practiced planning and delivered presentations or training in more than 28 states (plus the
District of Columbia), co-authored two books and wrote or co-wrote more than 30 articles, and has lectured at 15 universities.
He holds a Bachelor of Science in Public Planning from Northern Arizona University and a Master of Regional Planning from
Cornell University. Al’s career highlights include:
Leadership
§ Al has 20 plus years executive-level leadership experience guiding initiatives, programs, and projects for public benefit.
§ He is currently 2nd Vice President for the League of California Cities, Riverside County Division, City Managers Group.
§ Al is currently serving as an Advisory Board/Committee member for: Orange Home Grown, The Charles A. Bibbs African
American Museum and Cultural Center, UC Riverside School of Business, USC Price Graduate Planning Program,
California Baptist University School of Business, and Olive Crest.
§ Northern Arizona University will induct Al into the Hall of Fame for the College of Social and Behavioral Sciences in
October 2021 for his public service, service to NAU, and contributions to part, current, and future Planning students.
§ He is featured in John Forester’s How Spaces Become Places: Place Makers Tell Their Stories, Chapter 3: Community
Building in Place—Analysis, Design and Collaboration: Preface and a Profile of Al Zelinka, (New Village Press in 2021).
§ Al received the 2019 Government & Community Relations Award from the NAACP.
§ Riverside Branch Al was a TEDx speaker at The Other Things 2016 La Sierra University TEDx event in Riverside.
§ He is currently a member and a Past President of the California Planning Roundtable (served as President in 2011 and
2012), a 40-year organization dedicated to advancing the practice and profession of planning for a better California.
§ He received the Kenneth Jones Excellence in Training Award from the NeighborWorks® Training Institute in May 2007
for being an “Innovator, Mentor, and Collaborator.”
Authorship
• Al is a recognized thought leader on public safety through planning and urban design, on which he has authored many
publications, co-authored a book for the American Planning Association entitled SafeScape: Creating Safer, More Livable
Communities Through Planning and Design (March 2001), and delivered innumerable presentations and trainings.
• He co-authored an APA Planners Advisory Service Report with Susan Jackson Harden, entitled Placemaking On A Budget
(December 2005) and has provided training, workshops and presentations on placemaking to thousands.
• Al has written or co-authored more than 30 articles for various publications on a range of topics.
Student Education
• He established the first scholarship endowment for planning students at Northern Arizona University.
• He has instructed courses or lectured at/for UC Irvine, Cornell University, Northern Arizona University, Sonoma State
University, University of Southern California, California State University Long Beach, California State University San
Bernardino, California State University Fullerton, Cal Poly Pomona, Cal Poly San Luis Obispo, UC Davis Extension,
UCLA Extension, UC Riverside, and University of Southern New Hampshire and has served on 10 graduate student
thesis committees.
Community Service
§ Al was Assistant Scoutmaster for Troop 1475 in Orange from 2018-2021. (His son, John, earned the rank of Eagle Scout.)
§ In his neighborhood, Al led efforts to establish a Neighborhood Watch Program and a produce exchange (called the
Palmyra Produce Exchange), whereby neighbors share fruits, nuts, and vegetables grown in their yards, etc.
§ He has many years board member experience with the California Downtown Association, Northern Arizona University
National Alumni Association, American Planning Association chapters/sections and Big Brothers/Big Sisters of America.
§ He served as a Volunteer in Service to America (VISTA) where he led the Resource Apprenticeship Program for Students
in northern Alaska, securing and coordinating natural resource apprenticeships for 25 at-risk Alaska Native youth.
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Al Zelinka, FAICP, CMSM (Revised: February 28, 2022) Page 2
EDUCA TION
MASTER OF REGIONAL PLANNING — Cornell University, May 1991. Emphasis in downtown and neighborhood revitalization,
land use planning, urban design, and computer applications in planning. Two-year graduate assistantship/fellowship.
BACHELOR OF SCIENCE IN PUBLIC PLANNING, MINOR IN BUSINESS ADMINISTRATION — Northern Arizona University, May
1989. Graduated with honors (Cum Laude). Four-year academic scholarship. College of Social and Behavioral Sciences Hall of Fame
(Induction on October 15, 2021). Recipient of the 2000 Rising Star Alumnus distinguished recognition by the College of Social and
Behavioral Sciences, Department of Geography and Public Planning.
PROFESSIONAL EXPERIENCE
CITY MANAGER (JUNE 2018 TO PRESENT) CITY OF RIVERSIDE, CALIFORNIA
Reporting to the Riverside City Council, leads 2021/2022 budget of $1.2 billion (of which $287 million is general fund and
$116 million is capital projects), 12 departments and staff of over 2,500. Responsible for implementing the Envision Riverside
2025 Strategic Plan, City Council policy and all Riverside City Charter-defined responsibilities. Specific areas of note:
§ Financial Health. Established the CalPERS Challenge to address an inherited structural deficit by engaging the entire City
team to assess opportunities for revenue generation and cost savings through refinancing bond indebtedness, establishing
various revenue generation policies, capturing cost savings, improving the City’s processing of new development,
establishing Pension Stabilization Fund/Section 115 Pension Trust Account, putting in place one-time revenue policy, and
issuing pension obligation bonds – all resulting in balanced budgets for Fiscal Years 2020/21 and 2021/22, including
annual savings of approximately $7+ million in CalPERS annual cost reductions. Current projections are an elimination of
the structural deficit and anticipated surplus of nearly $50 million between FY 2020-21 and FY 2021-22, not including any
state or federal COVID-related funding. Presently utilizing priority-based budgeting to inform 2-year budget for 2022/23
through 2023/24. Facilitated 50% increase in year-over-year planning, building and development customers via on-line
portal for the One Stop Shop (and a reduction of more than 70% of walk-in customers), achieved five-year average of
record-setting new private sector building valuation in the City ($300 million+), and rolled out a state-of-the-art GIS system.
§ Transition of City Leadership. Effectively transitioned a newly elected City Council majority leadership (i.e., five of 7 City
Councilmembers and a new Mayor were newly elected) by establishing comprehensive onboarding system, conducting
strategic planning process (Envision Riverside 2025 Strategic Plan), and putting into place protocols and systems throughout
the organization that reinforce public interest and public trust in local government. Additionally, worked collaboratively to
transition two new charter officers – City Attorney and City Clerk – onto the City Team.
§ Stability During Challenging Times. Navigated the political, economic, community, and organizational impacts of
Homelessness, the Covid-19 Pandemic, Wildfires and Social Unrest. Facilitated nearly 1/3 of City workforce working
remotely or hybrid, accomplished balanced budget for Fiscal Year 2021/22, transitioned to a fully state-of-the-art GIS
system, stood up and achieved third year of record-setting investment in the City (exceeding $300m of building valuation),
and worked with the Chief of Police to develop a community-based policing strategy based on the pillars of 21st Century
Policing, that included establishing a system of Public Safety Engagement Teams (PSET) comprised of police, code
enforcement, homeless outreach and street nurse, as well as the Park and Neighborhood Specialist (PANS) program of 20
non-sworn professionals traversing the City’s parks and neighborhoods on foot or electric-assisted bicycles 7-days a week to
“keep the peace through peaceful means,” build relationships with residents, businesses, and visitors, enforce park rules,
and serve as eyes and ears for the Police, Homeless Outreach, Code Enforcement, PSET, and other City functions.
ASSISTANT CITY MANAGER (FEBRUARY 2015 TO JUNE 2018) CITY OF RIVERSIDE, CALIFORNIA
On behalf of the City Manager, oversaw City services pertaining to infrastructure, investment, and engagement, including
Community & Economic Development Department; Public Works Department; Innovation & Technology Department
(beginning December 2017); Parks, Recreation & Community Services Department (beginning December 2017) and, Office of
Communications. Oversee 2017/18 budget of $201 million (including Successor Agency debt service, CDBG, etc.) and staff of
655. Key initiatives of responsibility:
§ Streamline Riverside, Build Riverside & One Stop Shop. Through Streamline Riverside, oversaw reformation of
planning and development regulations and procedures, and consequently revised most fees downward, to efficiently
facilitate private investment without sacrificing quality outcomes in the built environment. Through Build Riverside,
directed effort to improve customer service and enhance the performance of all inspection and field service staff to improve
in-the-field efficiency for all activities occurring between building permit issuance through grand opening/ribbon-cutting.
Through the One Stop Shop, relocated nearly 100 staff from all development-related departments and aligned processes
and timelines, to create a single City Hall location in-person and on-line that serves the public’s investment needs. The
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Al Zelinka, FAICP, CMSM (Revised: February 28, 2022) Page 3
One Stop Shop, after more than 18 months of service, maintained an all-time average of 97% positive feedback via the
HappyOrNot system. More than 100 state, county, and local government representatives have toured or received
presentations on the Riverside One Stop Shop as a model for California.
§ Grow Riverside. Expanded upon the initial 2014 Grow Riverside conference by establishing more components of a strong
local food system as a significant economic development opportunity. This initiative takes advantage of Riverside’s
heritage, advantageous geographic location, local water and electric resources, as well as its 7½-square miles of permanently
protected agricultural land, its supply of industrial land (for indoor agriculture, food processing, and food distribution) and
significant rail and truck transportation network. Outcomes included the establishment of the non-profit Riverside Food
Systems Alliance, establishment of a Food Hub, creation of a new farmer education program, and partnerships among
Riverside’s 3 universities and 1 college to expand academic, experiential learning, and research in the local food system.
§ Downtown Riverside. Attracting and facilitating infill mixed use housing, cultural and entertainment attractions, hotel
and visitor-serving features, unique food and retail settings, and public space enhancements. Nearly 1000 dwelling units
and 350 hotel rooms in the pipeline or under construction. Riverside Live!, the new Main Library, the Cheech Marin
Center for Chicano Art, Industry & Culture, the Food Lab and Game Lab, Centerpointe, The Mark, and innumerable
public art projects are examples of the investment in-process or facilitated.
§ Sustainable Economic Development. Facilitated a strong and resilient local economy by maximizing the opportunities for
entrepreneurship and strategic recruitment of uses. This responsibility includes serving on the leadership team that
resulted in Riverside being selected by the California Air Resources Board for relocation of its nearly $450 million LEED
Platinum Net Zero research and testing facility (including 440+ scientist, engineering and technical research jobs);
implemented a strategic approach to developing prosperity through leverage of local assets and local talent; and, identified
and developed of catalyst projects that connect existing resources and industries.
COMMUNITY DEVELOPMENT DIRECTOR (JULY 2012 TO FEBRUARY 2015) CITY OF RIVERSIDE, CALIFORNIA
As a member of the City Manager’s economic development team, managed a $9.3 million General Fund budget ($44.5 million
including Successor Agency debt service, CDBG, etc.) and direct the efforts of 100-person plus team to facilitate investment
that is consistent with the City’s objectives and the community’s expectations. Oversee operations of city planning, building,
code enforcement, neighborhoods, historic preservation, urban design, housing authority, successor agency, real property,
grants, and homeless services. A range of strategic actions were implemented:
§ Instill Alignment Within City Hall and With Community. Successfully merged Development Department (i.e. former
Redevelopment Agency) into Community Development Department and reorganized blended departments into new work
teams and aligning mission with the City Manager’s Office of Economic Development. Formed OneTeam Committee to
allow staff members to identify new and better ways to work together and deliver services. Co-established Collaborative
Development meeting to allow interdepartmental leaders to discuss strategic development opportunities. Conducted daily
30-minute dialogues with employees to get to know each better, hear ideas and concerns, and reinforce a positive rapport.
Supported expansion of Code Enforcement’s Service Driven Initiative to enhance customer/public service, called the
Service Excellence Program. Successfully built partnerships with public, private, non-profit, and faith-based organizations to
advance strategic planning and economic development initiatives. Participated on City Manager's transparency committee
and led effort to integrate MindMixer as a central part of EngageRiverside -- the City's transparency portal on its website.
§ Integrate Technology & Private-Sector Services. Using AB2766 Subvention Funds, procured and implemented Avolve
Software’s ProjectDox online plan submittal and plan check system (renamed with the working title of “ePlan Review” for
use and promotion within the City of Riverside) – resulting in $10,000 per month of combined savings to the City and
customers. Led extensive multi-departmental effort to identify and select a permit tracking software program to replace
antiquated system. Through a State Historic Preservation Office Grant, supported creation of Riverside Landmarks, a free
and fun mobile application that identifies the City’s Landmark buildings. Instituted use of contract planners and planning
firms to supplement current and advanced planning capacities and expertise of staff. Oversaw Building & Safety Division
enhancements including on-call consultants retained to address extra plan check volume and other building services;
expanded over-the-counter plan check options (as a result, named 2013 “Building Department of the Year” for California).
§ Inspire Reinvestment & City Building. Secured more than $1 million in grants to conduct fixed guideway transit
feasibility study and an integrated Climate Action Plan with an Economic Prosperity Plan. Recruited a Heroes restaurant as
a catalyst for revitalizing a challenged location within Downtown Riverside. Attracted Ratkovich Properties to Downtown
Riverside to undertake adaptive reuse and mixed-use infill development for the historic Imperial Hardware building. Led
creation of a March 19-20, 2014, GrowRiverside: Citrus & Beyond! conference that resulted in a sold-out crowd of 425
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Al Zelinka, FAICP, CMSM (Revised: February 28, 2022) Page 4
people and inspired renewed interest in local agriculture as well as expanded food-related economic development.
Championed Business Ready Riverside, which focused on integrating efficiencies in processing planning and building
applications, updating the sign code, and putting in place a reliable funding program for ongoing technology
enhancements. Initiated Our Riverside, Our Neighborhoods, the most significant ABCD (Asset-Based Community
Development) neighborhood strategy effort occurring in the United States at that time (in partnership with Riverside
Neighborhood Partnership, the Davenport Institute, John McKnight, and others). Led adoption of or amendments to
several significant specific plans: California Baptist University Specific Plan; Riverside Community Hospital Specific
Plan/Environmental Impact Report; and Riverside Auto Center Specific Plan.
COMMUNITY DEVELOPMENT DIRECTOR (JUNE 2010 TO JUNE 2012) CITY OF FULLERTON, CALIFORNIA
PLANNING MANAGER (JULY 2008 TO JUNE 2010)
Managed $6 million budget and led 26-person (plus interns and contract staff) department comprising planning and
development services division, building and code enforcement division, and housing and community rehabilitation division.
Accomplishments included:
§ Created a More Effective and Efficient Department. Reorganized department and re-aligned operations to achieve
efficiencies and performance: merged building and code enforcement divisions to result in seamless coordination that
achieves faster resolution of building-related code violations; merged planning division and development services (i.e.
customer service counter) to fine-tune customer service and ensure applications are processed effectively and efficiently
from the start; integrated contract building plan check and inspection services to respond to fluctuating service demands;
established reforms to development review process and processing of environmental review (i.e., CEQA) to implement the
Permit Streamlining Act while streamlining efforts to facilitate investment while not compromising quality outcomes;
facilitated efforts to integrate ProjectDox (by Avolve) on-line plan submittal and plan check system to reduce costs of doing
business and increase staff productivity; and, right-sized and restructured department to address staff performance,
dissolution of redevelopment, and general fund revenue reductions while maintaining exceptional customer service.
§ Planned for a Vital Future. Oversaw significant planning and resource development achievements: Directed The Fullerton
Plan general plan update from start to finish, including broad support from the community and other interests; adoption
of multi-hazards mitigation plan; adoption of housing element; adoption of Fullerton Transportation Specific Plan, which
includes a form-based code and institutes administrative approval of projects through consistency review by an extension-of-
staff “Town Architect;” completed and/or initiated two SCAG Compass Blueprint Demonstration Projects: Fullerton
Downtown3D, a three-dimensional GIS- and SketchUp-based digital model of Downtown Fullerton and Fullerton Smart
Growth 2030, a guide to the next generation of funding and financing strategies for public infrastructure and development.
Directed efforts to: secure nearly $3.5 million in grant funding for planning and capital projects; received designation in
2010 as the only Gold-level Catalyst Community in the Southern California region (and 1 of only 5 in California); received
awards from Urban Land Institute, American Planning Association (California Chapter and Orange County Section), and
Southern California Association of Governments.
VICE PRESIDENT AND SHAREHOLDER (MAY 1997 TO JULY 2008) RBF CONSULTING, IRVINE, CALIFORNIA
PROMOTIONS: ASSOCIATE (2000), SENIOR ASSOCIATE (2003), STOCKHOLDER (2004), VICE PRESIDENT (2007)
§ As Principal of RBF Consulting’s Urban Design Studio, managed division with 20 team members company-wide and
approximately $15 million in annual contracts. Project director and project manager for the preparation of community-
based urban design, neighborhood, and downtown revitalization plans, community involvement processes, and
implementation programs. Led or played an active role in more than 80 projects, for which 25 professional awards were
received. Sample projects include: Pasadena, CA—Green Building Outreach and Education Program; San Jose, CA—Strong
Neighborhoods Initiative Demonstration Projects; Glendora, CA—Route 66 Specific Plan; Yorba Linda, CA—Town Center
Blue Ribbon Committee Report; and Tustin, CA—Legacy Park (MCAS Tustin) Design Guidelines.
ADDITIONAL PROFESSIONAL EXPERIENCE AVAILABLE UPON REQUEST
PROFESSIONAL ACTIVITIES AND PUBLIC S E RVICE
PROFESSIONAL CERTIFICATION — Fellow of the American Institute of Certified Planners (March 2010); American Institute of
Certified Planners (1994, #11175); Certificate in Crime Prevention Through Environmental Design (June 1996); Certified
Main Street Manager (March 2000); Professional Certificate in Community Economic Development (June 2004).
PROFESSIONAL REFERENCES GLADLY PROVIDED UPON REQUEST
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City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-337 MEETING DATE:5/3/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
VIA:Eric Parra, Chief of Police
PREPARED BY:Ingrid Ono, Administrative Assistant
Subject:
Adoption of Uncodified Police Equipment Use Policy Emergency Ordinance No. 4254 and
Uncodified Police Equipment Use Policy Ordinance No. 4255 consistent with Assembly Bill
No. 481 and making a Finding of Exemption under CEQA
5 Affirmative Votes are required to adopt Emergency Ordinance No. 4254 per City Charter
Section 501
Statement of Issue:
Assembly Bill 481 ("AB 481"), effective January 1, 2022, requires law enforcement agencies to
obtain approval from their respective governing bodies of an equipment use policy before
purchasing, using, raising funds for, or acquiring military type equipment. AB 481 requires the policy
be posted on the Police Department’s website at least 30 days before the Council’s consideration of
the policy, which must be adopted by ordinance no later than May 1, 2022.The attached policy
satisfies the requirements of AB 481 including posting on the Department’s website on March 18,
2022. Due to the legislation’s expanded noticing requirements and to ensure that the Department
retains the ability to utilize critical equipment and functions at all times, staff recommends that the
City Council adopt the attached Emergency Ordinance 4254 and Ordinance 4255.
Financial Impact:
None
Recommended Action:
A) Adopt Uncodified Police Equipment Use Policy Emergency Ordinance 4254, “An Emergency
Ordinance of the City Council of the City of Huntington Beach Adopting a Military Equipment Use
Policy Consistent With Assembly Bill No. 481, and Making a Finding of Exemption Under CEQA”;
and,
B) Approve for Introduction Uncodified Police Equipment Use Policy Ordinance 4255, “An Ordinance
of the City Council of the City of Huntington Beach Adopting a Military Equipment Use Policy
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File #:22-337 MEETING DATE:5/3/2022
Consistent With Assembly Bill No. 481, and Making a Finding of Exemption Under CEQA.”
Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
AB 481 requires the governing body that oversees a law enforcement agency to approve an
ordinance adopting a “military equipment” use policy at a regular meeting of the governing body held
in accordance with the Brown Act. The legislation outlines the required scope of the policy, and
continued obligations for annual review of the policy.
Scope of the Policy.
The term “military equipment” pursuant to AB 481 includes, but is not limited to things like, unmanned
aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal
shotguns, less lethal 40mm projectile launchers, long range acoustic devices, and flashbangs. Many
law enforcement agencies across the country have used this type of equipment for years to enhance
citizen and officer safety.Although defined as “military equipment” in AB 481, a majority of the listed
equipment is commercially manufactured for civilian law enforcement purposes. Each of the listed
pieces of equipment serves a specific purpose in our officers’ efforts to protect the safety and
security of our residents and visitors, which is also included in the proposed policy.
AB 481 requires that the military equipment use policy must include the following information:
1.A description of each type of military equipment, the quantity sought, its capabilities, expected
lifespan, and product descriptions from the manufacturer of the military equipment.
2.The purposes and authorized uses for which the law enforcement agency or the state agency
proposes to use each type of military equipment.
3.The fiscal impact of each type of military equipment, including the initial costs of obtaining the
equipment and estimated annual costs of maintaining the equipment.
4.The legal and procedural rules that govern each authorized use.
5.The training, including any course required by the Commission on Peace Officer Standards
and Training, that must be completed before any officer, agent, or employee of the law
enforcement agency or the state agency is allowed to use each specific type of military
equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil
liberties and full adherence to the military equipment use policy.
6. The mechanisms to ensure compliance with the military equipment use policy, including
which independent persons or entities have oversight authority, and, if applicable, what
legally enforceable sanctions are put in place for violations of the policy.
7. The procedures by which members of the public may register complaints or concerns or
submit questions about the use of each specific type of military equipment, and how the law
enforcement agency will ensure that each complaint, concern, or question receives a
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File #:22-337 MEETING DATE:5/3/2022
enforcement agency will ensure that each complaint, concern, or question receives a
response in a timely manner.
Procedural Requirements.
As noted above, AB 481 requires law enforcement agencies to post their proposed military
equipment use policies on their website at least 30 days prior to City Council consideration of the
policy. Accordingly the attached policy was posted to the Department’s website on March 18, 2022,
more than 30 days prior to City Council’s consideration of this item.
In order for the City Council to approve and adopt this Policy, the City Council must make the
following findings:
1. The military equipment identified in the proposed policy is necessary because there are no
reasonable alternatives that can achieve the same objectives of officer and civilian safety.
2. The military equipment use policy will safeguard the public’s welfare, safety, civil rights, and
civil liberties.
3. The military equipment identified in the proposed policy is reasonably cost effective compared
to available alternatives that can achieve the same objectives of officer and civilian safety.
The Police Department is constantly evolving when it comes to options for utilizing equipment that
enhances the safety and security of our residents and visitors. As such, we continually test and
evaluate new technologies to assist our officers in providing the highest level of service compared to
other equipment alternatives. The Department also works closely with the Finance Department to
ensure that the City benefits from complete competitive bid processes whenever appropriate to
maintain fiscal responsibility while balancing community needs.
Finally, in addition to posting the military equipment use policy on the law enforcement agency's
website prior to this initial adoption, each agency must submit an annual military equipment report to
the governing body detailing the equipment used in the preceding year and hold at least one
community engagement meeting within 30 days of releasing the annual report. This report must
include a summary of how the equipment was used, a summary of complaints received, the result of
any internal audit and actions taken in response, the total annual cost and the quantity possessed of
each type of military equipment, and any additional equipment the agency intends to acquire in the
next year. Each year the governing body must review the annual report and determine whether each
type of military equipment identified in that report has complied with the standards for approval set
forth above and vote on whether to renew it, in accordance with Government Code Section 7071(e)
(2).
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
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File #:22-337 MEETING DATE:5/3/2022
Attachment(s):
1. Uncodified Emergency Ordinance No. 4254
2. Uncodified Ordinance No. 4255
3. HBPD Equipment Use Policy
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Military Equipment Funding, Acquisition, and Use Policy
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting
requirements of military equipment (Government Code § 7070; Government Code § 7071; Government
Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):
Governing body – The City Council of the City of Huntington Beach.
Military equipment – Any of a wide variety of items as defined by Government Code § 7070, subsection
(c), as may be amended from time to time.
706.2 POLICY
It is the policy of the Huntington Beach Police Department that members of this Department comply with
the provisions of Government Code § 7071 with respect to military equipment.
706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police or an authorized designee shall act as the military equipment coordinator. The
responsibilities of the military equipment coordinator include but are not limited to:
a. Acting as liaison to the governing body for matters related to the requirements of this policy.
b. Identifying Department equipment that qualifies as military equipment in the current possession of
the Department, or the equipment the Department intends to acquire that requires approval by
the governing body.
c. Conducting an inventory of all military equipment at least annually.
d. Collaborating with any allied agency that may use military equipment within the jurisdiction of the
Huntington Beach Police Department] (Government Code § 7071).
e. Preparing for, scheduling, and coordinating the annual community engagement meeting to
include:
1. Publicizing the details of the meeting.
2. Preparing for public questions regarding the Department’s funding, acquisition, and use
of equipment.
f. Preparing the annual military equipment report for submission to the Chief of Police and ensuring
that the report is made available on the Department’s website (Government Code § 7072).
g. Making recommendations for future revisions of the military equipment policy.
706.4 MILITARY EQUIPMENT INVENTORY
A current list of qualifying equipment for the Department is attached to this Policy as Exhibit 1.
706.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of
an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police
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or the authorized designee shall ensure the proposed military equipment policy is submitted to the
governing body and is available on the Department website at least 30 days prior to any public hearing
concerning the military equipment at issue (Government Code § 7071). The military equipment policy
must be approved by the governing body prior to engaging in any of the following (Government Code §
7071):
a. Requesting military equipment made available pursuant to 10 USC § 2576a.
b. Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or
accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
c. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
d. Collaborating with another law enforcement agency in the deployment or other use of military
equipment within the Department’s jurisdiction.
e. Using any new or existing military equipment for a purpose, in a manner, or by a person not
previously approved by the governing body.
f. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or
entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military
equipment.
g. Acquiring military equipment through any means not provided above.
Nothing in this policy shall preclude the Department from using funds to maintain or replace existing
equipment for use in the same manner as previously approved by the City Council.
706.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction
unless the military equipment is approved for use in accordance with this policy.
706.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should
submit a military equipment report to the governing body for each type of military equipment approved
within one year of approval, and annually thereafter for as long as the military equipment is available for
use (Government Code § 7072).
The Chief of Police or the authorized designee should also make each annual military equipment report
publicly available on the Department website for as long as the military equipment is available for use.
The report shall include all information required by Government Code § 7072 for the preceding calendar
year for each type of military equipment in the Department’s inventory.
706.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least
one well-publicized and conveniently located community engagement meeting, at which the Department
should discuss the report and respond to public questions regarding the funding, acquisition, or use of
military equipment.
706.9 COMPLIANCE
1. The Training Division will ensure that all Department members comply with this policy by conducting
an annual audit with the assistance of the Professional Standards Unit. The Chief of Police or
designee will be notified of any policy violations and, if needed, the violation(s) will be referred to the
Professional Standards Unit and handled in accordance with Reference Manual Section 310.7
(Administrative Investigations).
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2. Any member of the public can register a question or concern regarding military use equipment by
contacting the Professional Standards Unit via email at policepsu@hbpd.org. A response to the
question or concern shall be completed by the Department in a timely manner.
3. Any member of the public can submit a complaint by contacting the on-duty Watch Commander, the
Professional Standards Unit, or any other supervisor, consistent with the Citizen Complaint Reporting
Procedure available on the Department’s website. A response to the complaint shall be completed by
the Department in a timely manner.
4. All instances of non-compliance will be reported to City Council via the annual military equipment
report.
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EXHIBIT 1
CURRENT MILITARY EQUIPMENT INVENTORY
(Attached)
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1. UNMANNED AIRCRAFT SYSTEM (UAS): An unmanned aircraft along with the associated
equipment necessary to control it remotely.
a. Description, Quantity, Capabilities and Purchase Cost
i. DJI PHANTOM 4 PRO - Cost: $1,599 each; quantity: 2. UAS that weighs
approximately 1388 grams and can record video and audio with approximately
30 minutes of flight time.
ii. DJI MAVIC AIR - Cost: $579 each; quantity: 2. UAS with a single-color
camera with no zoom capabilities, weighs approximately 230 grams and has
video recording capabilities with approximately 21 minutes of flight time.
iii. DJI MAVIC AIR 2S - Cost: $799 each; quantity: 6. UAS with a single-color
camera with zoom capabilities, weighs approximately 570 grams and has video
recording capabilities with approximately 43 minutes of flight time.
iv. DJI MAVIC PRO - Cost: $1500; quantity: 2. UAS that weighs approximately
899 grams with 25 minutes of flight time and a single-color camera with
recording capabilities.
v. DJI MAVIC ENTERPRISE DUAL - Cost: $2,500 each; quantity: 1. UAS that
has a color and thermal camera as well as audible speaker and light, capable
of video recording and weighs 899 grams with approximately 30 minutes of
flight time.
vi. DJI MAVIC ENTERPRISE - Cost: $2,495 each; quantity: 10. UAS that has a
color zoom camera as well as audible speaker and light, capable of video
recording and weighs 899 grams with approximately 30 minutes of flight time.
vii. DJI MAVIC ENTERPRISE ADVANCED - Cost: $6,500 each; quantity: 10. UAS
that has a color and thermal zoom camera as well as an audible speaker and
light, capable of video recording and weighs 909 grams with approximately 31
minutes of flight time.
viii. DJI M210 - Cost: $25,000 each; quantity: 1. UAS that has a thermal zoom
color camera and weighs 6.14 kilograms. Has video recording capabilities with
approximately 38 minutes of flight time
ix. AUTEL EVO 1 - Cost: $1,000 each; quantity: 1. UAS that has a color camera
with zoom, capable of video recording and weighs 370 grams with
approximately 30 minutes of flight time.
x. AUTEL EVO 2 6K - Cost: $ 1,795 each; quantity: 2. UAS that has a color
camera with zoom, capable of video recording and weighs 1127 grams with
approximately 40 minutes of flight time.
xi. AUTEL EVO 2 DUAL R - Cost: $ 12,300 each; quantity: 2 (to be purchased
this year). UAS that has a color and thermal camera with zoom, as well as
audible speaker and light, capable of video recording and weighs 1127 grams
with approximately 40 minutes of flight time.
xii. SKYDIO 2 - Cost: $1,000 each; quantity: 1. UAS that has a color camera
capable of video recording and weighs 280 grams with approximately 23
minutes of flight time.
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xiii. SY-HERO LOKI MK2 - Cost: $10,000 (set of 2); quantity: 2. UAS that has a
color and infrared camera and weighs approximately 8 oz, does not record
video and has approximately16 minutes of flight time.
b. Purpose
Small Unmanned Aerial Systems are to be deployed when its view would assist
officers or incident commanders with the following situations, which include, but are
not limited to:
i. Major traffic collision investigations
ii. Evidence collection
iii. Search for missing persons/swimmers
iv Crime scene photography
v. Natural disaster management
vi. Situational awareness during major incidents
vii. SWAT, tactical or other public safety and life preservation missions
viii. In response to specific requests from local, state or federal fire authorities for
fire response and/or prevention.
c. Authorized Use
Only assigned UAS team members who have completed the required training and hold
a valid FAA Part 107 license, shall be permitted to operate any UAS during approved
missions.
d. Expected Life Span
All UAS equipment, approximately 3-5 years.
e. Fiscal Impact
Annual maintenance and battery replacement cost is approximately $25,000.
f. Training
All department UAS operators are licensed by the Federal Aviation Administration for
UAS operation under FAA Regulation 14 CFR Part 107. In addition, each operator
must attend initial department or POST-certified training and participate in ongoing
training.
g. Legal and Procedural Rules
FAA Regulation 14 CFR Part 107 and the Huntington Beach Lexipol Policy section
463 (UAS Policy). It is the policy of the Huntington Beach Police Department to utilize
UAS only for official purposes and in a manner that respects the privacy of our
community pursuant to State and Federal law.
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2. ROBOT: A remotely-controlled, unmanned machine that operates on the ground, which is
utilized to enhance the safety of the community and officers.
a. Description, Quantity, Capabilities and Purchase Cost
i. TRANSCEND VANTAGE TACTICAL ROBOT - Cost: $26,000; quantity: 1. A
remotely operated, tactical robot providing officers with the ability to observe
the interior of a structure without entering. This capability increases the
safety of community members, officers and suspects by providing the
operator with the ability to observe and locate subjects without the risk of a face-
to-face confrontation. Additionally, the remote, two-way communication
capability allows operators to de-escalate situations by negotiating the
surrender of barricaded subjects.
ii. RECON THROWBOT TACTICAL ROBOT - Cost: $15,000; quantity: 2. A
throwable micro-robot platform that enables operators to obtain instantaneous
video and audio reconnaissance within indoor or outdoor environments. This
capability increases the safety of community members, officers and
suspects by providing the operator with the ability to observe and locate subjects
without the risk of a face-to-face confrontation. This robot is portable and able
to be easily carried by officers.
iii. ROBOTEX AVATAR TACTICAL ROBOT - Cost: $18,000; quantity: 1. A
remotely operated, tactical robot providing officers with the ability to observe
the interior of a structure without entering. This capability increases the
safety of community members, officers and suspects by providing the
operator with the ability to observe and locate subjects without the risk of a face-
to-face confrontation.
b. Purpose
To be used during tactical incidents to safely search a structure without exposing
officers and/or community members to the risk of a face-to-face confrontation.
c. Authorized Use
Tactical robots shall only be deployed by Department personnel trained in their use.
d. Expected Life Span
All robots, approximately 8-10 years.
e. Fiscal Impact
Annual maintenance and battery replacement costs of approximately $2,500.
f. Training
All operators shall receive initial training before deploying the robots in the field.
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g. Legal and Procedural Rules
The Department shall only utilize the robots for official law enforcement purposes,
pursuant to State and Federal Law.
3. ARMORED VEHICLES: Commercially produced, ballistically protected, wheeled vehicles
designed for law enforcement purposes.
a. Description, Quantity, Capabilities and Purchase Cost
i. LENCO BEAR - Cost: $293,745; quantity: 1. The Lenco Bear is an armored
rescue vehicle that seats 10-12 personnel with open floor plan that allows for
rescue of down civilians and personnel. It can stop various projectiles which
provides greater safety to civilians and officers beyond the protection level of
shields and personal body armor.
ii. TERRADYNE GUHRKA - Cost: $353,653; quantity: 1. The Terradyne Guhrka
is an armored vehicle that seats 7-8 personnel with open floor plan that allows
for rescue of down civilians and personnel. It can stop various projectiles which
provides greater safety to civilians and officers beyond the protection level of
shield and personal body armor. In addition, it is equipped with Advanced
Lifesaving Equipment, at the level of an ambulance, to provide injured persons
with an immediate, advanced level of medical treatment increasing the
likelihood of reduced long-term injury or death.
b. Purpose
To be used in response to critical incidents to enhance officer and community safety,
improve scene containment and stabilization, assist in resolving critical incidents, and
provide immediate, advanced lifesaving medical treatment.
c. Authorized Use
Armored vehicles shall only be deployed by personnel trained in their use and in a
manner consistent with Department policies and procedures.
d. Lifespan
All vehicles have an estimated lifespan of 25 years.
e. Fiscal Impact
Annual maintenance costs of approximately $10,000.
f. Training
All drivers/operators shall attend formalized instruction in vehicle operations, practical
driving instruction and deployment procedures.
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g. Legal and Procedural Rules
The Department shall only utilize armored vehicles for official law enforcement
purposes, pursuant to State and Federal law.
4. MOBILE COMMAND POST VEHICLE (MCP): A vehicle used as a mobile office that provides
shelter, a communications center, access to Department computer systems and restroom
facilities during extended events.
a. Description, Quantity, Capabilities and Purchase Cost
FREIGHTLINER MT55 CHASSIS (custom built by LDV) VEHICLE - Cost: $191,000;
quantity: 1. The MCP can also be utilized for SWAT/CNT and other critical incidents;
preplanned, large events; searching for missing persons; natural disasters; and
community events.
b. Purpose
To be used based on the specific circumstances of a given critical incident, large event,
natural disaster or community event that is taking place.
c. Authorized Use
Only officers trained in their deployment and operations, in a manner consistent with
Department policy, are authorized to operate the MCP. Only officers who have
completed the California State Class B Commercial driving school and become
properly licensed will be allowed to drive the MCP.
d. Lifespan
Estimated lifespan of 20 years on chassis and vehicle. Annual IT upgrades will be
necessary.
e. Fiscal Impact
Annual maintenance costs of approximately $7,500.
f. Training
The driver/operator shall receive training in the safe handling of the vehicle on a closed
training course. Driver/operators shall also undergo California Department of Motor
Vehicles commercial vehicle testing (Class B).
g. Legal and Procedural Rules
The Department shall only utilize the vehicle for official law enforcement purposes in
accordance with California State law regarding the operation of motor vehicles.
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5. CRISIS NEGOTIATION TEAM (CNT) VEHICLE: A vehicle used as a mobile crisis
negotiations team office that provides shelter, access to Department computer systems, and
a communications center on extended events.
a. Description, Quantity, Capabilities and Purchase Cost
FORD TRANSIT VAN (custom built) VEHICLE - Cost: $115,000; quantity: 1. The CNT
vehicle can be utilized with SWAT/CNT callouts.
b. Purpose
To be utilized for critical incident callouts.
c. Authorized Use
The CNT vehicle will be used by officers and staff who have been properly trained in
the safe handling of the vehicle. The driver of the vehicle shall have a valid California
driver license.
d. Lifespan
Estimated lifespan of 30 years on chassis and vehicle.
e. Fiscal Impact
Annual maintenance costs of approximately $600.
f. Training
To be used by officers and staff who have been properly trained in the safe handling
of the vehicle. The driver of the vehicle shall have a valid California driver license.
g. Legal Procedural Rules
The Department shall only utilize the vehicle for official law enforcement purposes in
accordance with California State law regarding the operation of motor vehicles.
6. LONG RANGE ACOUSTIC DEVICE (LRAD): Long Range Acoustical Device (LRAD) is a
high intensity, directional acoustical array for long range, crystal clear hailing, notification, and
an unmistakable warning tone. The LRAD is primarily used as a communication device.
a. Description, Quantity, Capabilities and Purchase Cost
LRAD 100X MAG- HS WIRELESS KIT - Cost: $16,586; quantity: 1. Self-contained,
portable, and featuring an extended voice broadcast range out to 600 meters, the
LRAD 100X ensures voice messages are clearly heard and understood. LRAD’s
optimized driver, waveguide, and power efficiency technologies enable the LRAD
100X to provide several hours of clear, continuous communication from a single
battery charge.
b. Purpose
To be used to issue dispersal orders during crowd and riot control situations or to
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address the public in the event of civil emergencies, natural disasters, evacuations,
and police incidents (e.g., missing persons, perimeters for wanted suspects, K9
deployments, etc.). The LRAD may also be used to issue a warning tone.
c. Authorized Use
LRADs shall only be used by personnel trained in its deployment and used in a manner
consistent with State and Federal law.
d. Lifespan
Estimated lifespan of 25 years.
e. Fiscal Impact
Annual maintenance costs of approximately $400.
f. Training
All operators will receive training prior to operating the LRAD in the field.
g. Legal and Procedural Rules
The Department shall only utilize the LRAD for official law enforcement purposes,
pursuant to State and Federal law.
7. 40MM LAUNCHERS AND ROUNDS: 40mm launchers are utilized by Department personnel
as a less-lethal tool to deploy less-lethal impact munitions and chemical munitions.
a. Description, Quantity, Capabilities and Purchase Cost
i. LMT TACTICAL SINGLE SHOT LAUNCHER, #1425 - Cost: $1,000; quantity:
59. The 40mm Single Launcher is a tactical single-shot launcher that features
an integrated stock and an adjustable, integrated front grip with a top rail. It will
fire standard 40mm less-lethal ammunition up to 4.8 inches in cartridge length.
It will launch a 40mm less-lethal round up to 131 feet.
ii. PENN ARMS, #1377, 40mm MULTI-LAUNCHER - Cost $2,890; quantity: 1.
The 40mm Multi-Launcher is a tactical pump advance multi-shot (6) launcher
that features an integrated stock with a top rail. It will fire standard 40mm less-
lethal ammunition up to 4.8 inches in cartridge length.
iii. DEFENSE TECHNOLOGY, 40mm EXACT IMPACT SPONGE, #6325 - Cost:
$20; quantity: 300. A less-lethal 40mm lightweight plastic and foam projectile
fired from a single or multi-round purpose-built 40mm launcher with a rifled
barrel at 345 FPS. The 30-gram foam projectile delivers 120 ft/lbs of energy on
impact. The 40mm Exact Impact Sponge Round provides accurate and
effective performance when fired from the approved distance of not less than
five (5) feet and as far as 131 feet from the target. It is designed as a less-
lethal option for violent persons actively engaging in criminal behavior. Only
members of the Department who have completed training by a POST- certified
less-lethal instructor are authorized to deploy the 40mm round.
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iv. DEFENSE TECHNOLOGY, 40mm EXACT IMPACT INERT & MARKING
SPONGE, #6323 - Cost: $20; quantity: 300. A less-lethal 40mm lightweight
plastic and foam projectile fired from a single or multi-round purpose-built
40mm launcher with a rifled barrel at 305 FPS. The 3.8-gram foam projectile
delivers 120 ft/lbs of energy on impact with inert marking agent. The 40mm
Exact Impact Sponge Round provides accurate and effective performance when
fired from the approved distance of not less than five (5) feet and as far as 131
feet from the target. It is designed as a less-lethal option for violent persons
actively engaging in criminal behavior. The marking feature is effective in
identifying persons who are in crowds, have the ability to flee, or who may
attempt to flee from apprehension. Only members of the Department who have
completed training by a POST-certified less-lethal instructor are authorized to
deploy the 40mm round.
v. DEFENSE TECHNOLOGY, FERRETT 40mm LIQUID BARRICADE
PENETRATOR ROUND, #2262 - Cost: $23; quantity: 25. A less lethal 40mm
round used to penetrate barriers such as windows, hollow core doors,
wallboard and thin plywood. Upon impacting the barrier, the nose cone
ruptures and instantaneously delivers a small chemical payload inside of a
structure or vehicle. In a tactical deployment situation, the 40mm Ferret is
primarily used to dislodge barricaded subjects from confined areas. Its purpose
is to minimize the risks to all parties through pain compliance, temporary
discomfort and/or incapacitation of potentially violent or dangerous subjects.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or
undesirable.
c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited
to:
i. Self-destructive, dangerous and/or combative individuals
ii. Riot/crowd control and civil unrest incidents
iii. Circumstances where a tactical advantage can be obtained
iv. Potentially vicious animals
v. Training exercises or approved demonstrations
vi. Tactical situations involving the deployment of the Department's SWAT Team
d. Training
Personnel deploying less-lethal or chemical agents will be trained in their use and
deployment before using them in the field. A POST-certified less-lethal or chemical
agent instructor will conduct all training.
e. Lifespan
LMT Single Shot Launcher: 25 years
Penn Arms Launcher: 25 years
All listed munitions: 5 years
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f. Fiscal Impact
Annual maintenance cost is approximately $50 for each launcher.
g. Legal and Procedural Rules
The Department shall only utilize 40mm launchers and rounds during critical incidents
for official law enforcement purposes, pursuant to State and Federal law.
8. COMBINED SYSTEMS LC5 40mm TACTICAL LAUNCHING CUP: Cups attach to 12
gauge, less-lethal shotguns allowing officers to launch canisters of chemical agents or smoke.
a. Description, Quantity, Capabilities and Purchase Cost
COMBINED SYSTEMS LC5 40mm LAUNCHING CUP - Cost: $346; quantity: 2. The
LC5 Launching Cups are designed for the 5200 series grenades. The cups can be
attached to virtually any 12 gauge shotgun and the munition launched with our model
2600 launching cartridge.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or
undesirable.
c. Authorized Use
Situations for use of the less-lethal weapon systems may include, but are not limited
to:
i. Self-destructive, dangerous and/or combative individuals
ii. Riot/crowd control and civil unrest incidents
iii. Circumstances where a tactical advantage can be obtained
iv. Potentially vicious animals
v. Training exercises or approved demonstrations
vi. Tactical situations involving the deployment of the Department's SWAT Team
d. Lifespan
Estimated lifespan: 25 years
e. Fiscal Impact
No annual maintenance.
f. Training
Officers utilizing the launching cups are trained by POST-certified chemical agent
instructors.
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g. Legal and Procedural Rules
The Department shall only utilize 40mm launching cups for official law enforcement
purposes, pursuant to State and Federal law.
9. NOISE FLASH DIVERSIONARY DEVICES (NFDD): A device used to distract or divert a
dangerous person's attention.
a. Description, Quantity, Capabilities and Purchase Cost
i. COMBINED TACTICAL SYSTEMS, 7290 FLASH-BANG - Cost: $42; quantity:
25. A non-bursting, non-fragmenting, flashbang device that produces a
thunderous bang with an intense bright light. Ideal for distracting dangerous
suspects during assaults, hostage rescue, room entry or other high-risk arrest
situations.
ii. COMBINED TACTICAL SYSTEMS, 7290-2 FLASH-BANG - Cost: $56;
quantity: 15. A non-bursting, non-fragmenting, multi-bang device that
produces a thunderous bang with an intense bright light. Ideal for distracting
dangerous suspects during assaults, hostage rescue, room entry or other high-
risk arrest situations.
iii. COMBINED TACTICAL SYSTEMS, 7290-5 FLASH-BANG - Cost: $125;
quantity: 5. A non-bursting, non-fragmenting, multi-bang device that produces
a thunderous bang with an intense bright light. Ideal for distracting dangerous
suspects during assaults, hostage rescue, room entry or other high-risk arrest
situations.
iv. COMBINED TACTICAL SYSTEMS, 7290-9 FLASH-BANG - Cost: $156;
quantity: 5. A non-bursting, non-fragmenting, multi-bang device that produces
a thunderous bang with an intense bright light. Ideal for distracting dangerous
suspects during assaults, hostage rescue, room entry or other high-risk arrest
situations.
v. COMBINED TACTICAL SYSTEMS, 7290M MINI FLASH-BANG - Cost: $40
quantity: 10. The 7290M Flash-Bang exhibits all the same attributes of its
larger counterpart but in a smaller and lighter package. Weighing in at just 15
ounces, the new 7290M is approximately 30% lighter than the 7290 but still
has the same 175 db output of the 7290 and produces 6-8 million candelas of
light.
vi. DEFENSE TECHNOLOGY, 8933 LOW -ROLL RELOADABLE DIVERSION-
ARY DEVICE - Cost: $55; quantity: 30. A non-bursting, non-fragmenting
flashbang device that produces a thunderous bang with an intense bright light.
Ideal for distracting dangerous suspects during assaults, hostage rescue, room
entry or other high-risk arrest situations.
vii. DEFENSE TECHNOLOGY, 8922CI LOW ROLL 2CI RELOADABLE
DIVERSIONARY DEVICE - Cost: $75; quantity: 10. A non-bursting, non-
fragmenting flashbang device that produces a thunderous bang with an intense
bright light. Ideal for distracting dangerous suspects during assaults, hostage
rescue, room entry or other high-risk arrest situations.
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b. Purpose
A diversionary device is used to distract dangerous suspects during assaults, hostage
rescue, room entry, or other high-risk arrest situations. To produce atmospheric
overpressure and brilliant white light and, as a result, can cause short-term (6-8
seconds) physiological/psychological, sensory deprivation to give officers a tactical
advantage.
c. Authorized Use
Diversionary Devices shall only be used:
i. By officers who have been trained in their proper use
ii. In hostage and barricaded subject situations
iii. In high risk warrant (search/arrest) services where there may be extreme
hazards to officers
iv. During other high-risk situations where their use would enhance officer safety
v. During training exercises
d. Lifespan
Until used.
e. Fiscal Impact
No annual maintenance.
f. Training
Prior to use, officers must attend divisionary device training conducted by POST-
certified instructors.
g. Legal and Procedural Rules
The Department shall only utilize NFDDs for official law enforcement purposes,
pursuant to State and Federal law.
10. RIFLES AND AMMUNITION: Shoulder-fired firearms, with long, spirally-grooved barrels,
intended to cause projectiles to spin, improving accuracy over a long distance.
a. Description, Quantity, Capabilities and Purchase Cost
i. DANIEL DEFENSE DDM4 V7 223/5.56 PATROL RIFLE equipped with an
Aimpoint optic, tactical light, and sling - Cost: $2,555; quantity: 61. The DDM4
V7 AR15-style firearm features M-LOK attachment technology with the Daniel
Defense MFR 15.0 rail. Built around a cold hammer forged, 16-inch barrel, the
V7 has a DD improved flash suppressor to reduce flash signature. The mid-
length gas system provides smooth and reliable cycling under any condition
and reduces both perceived recoil and wear on moving parts. With the M-LOK
attachment points that run along 7 positions and an uninterrupted 1913
Picatinny rail on top, the V7 has adjustable back up iron sights. The
independently ambi GRIP-N-RIP charging handle accommodates left- and
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right-handed shooters. This rifle also comes with the ergonomic Daniel Defense
buttstock and pistol grip.
ii. DANIEL DEFENSE SOCOM-MK18 223/5.56 SWAT RIFLE equipped with an
Aimpoint optic, tactical light and sling - Cost: $2,600; quantity: 35. The
SOCOM-MK18 AR15-style firearm features a quad-rail system, cold hammer
forged 10.3-inch barrel. The MK18 delivers optimal maneuverability, reliability,
accuracy and terminal ballistics using a wide variety of ammunition. Its carbine
length gas system provides smooth and reliable cycling under harsh conditions
and reduces perceived recoil. With the quad-rail attachment points that run
along 7 positions and an uninterrupted 1913 Picatinny rail on top, the MK-18
has plenty of room for sights, optics, and accessories the user may require.
Pairing a 10.3-inch barrel and the quad-rail also ensures compatibility with a
wide variety of muzzle devices and sound suppressors. The independently
ambi GRIP-N-RIP charging handle accommodates left- and right-handed
shooters. This rifle also comes with the ergonomic buttstock and pistol grip.
iii. BUSHMASTER AR15 223./5.56 PATROL RIFLE equipped with Trijicon ACOG
sight, tactical light and sling - Cost: $2,500; quantity 26. The AR15- style
firearm features the Picatinny rail cage with Bushmaster 16” barrel and mid-
length gas tube system. The Picatinny rail system allows attachments of the
tactical light with pressure switch, adjustable iron sights and the Trijicon ACOG
4x32 model sight system.
iv. BUSHMASTER AR15 223./5.56 PATROL RIFLE equipped with iron sights and
a sling, used strictly for the Ceremonial Detail. Cost: $1,000, quantity 8. The
AR15 rifle is in an M4 configuration with a carry handle and fixed rifle stock.
v. GEISSELE SUPER DUTY RIFLE CHF #08-392 equipped with an Aimpoint
optic, tactical light, Surefire Suppressor and sling - Cost $3,400, quantity 90.
Geissele SSA Triger, Bolt Carrier group – 5.56 modular rail MK16 M-LOK,
Geissele A22 rifle grip. Surefire CTN Warcomp flash hider. Surefire second
generation SoCom suppressor for 5.56. T1 Lower. Aimpoint Micro T-2 optic.
Folding front and rear sights.
vi. ACCURACY INTERNATIONAL AT308 RIFLE, cost: $4700, quantity: 4. .308
Winchester (short action) 5.8kg (12.8lb) with empty magazine, no scope, 24”
barrel, no muzzle brake. Fixed stock, standard adjustable cheek piece, fixed
butt pad with spacers, pistol grip, flush cup spring attachment points, 20 MOA
STANAG 4694/Mil Std 1913 action rail, double chamber standard muzzle
brake.
vii. REMINGTON 700 COMPACT TACTICAL RIFLE .308 – Cost: $2,000; quantity:
1. Remington's Model 700 Compact Tactical Rifle features a 416 stainless
steel-barreled action with externally adjustable trigger.
viii. WINCHESTER.223/5.56 TRAINING AMMUNITION - Cost: $170 per case of
500; quantity: 120 cases. Winchester ammunition features a lead core 55-grain
full metal, non-magnetic jacket. Non-corrosive boxer primer and new virgin
brass casings can be reloaded up to seven times.
ix. WINCHESTER 223./5.56 RANGER BALLISTIC SILVERTIP DUTY
AMMUNITION #RA223BSTA - Cost: $388 per case; quantity 75 cases.
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Winchester Ranger is the highest line quality intended for law enforcement.
Winchester Ranger 223 Remington has a muzzle velocity of 3240 feet per
second and muzzle energy of 1262 feet pounds. W inchester Ranger ammo is
reloadable, features new virgin brass casings and boxer primers. This
ammunition is non-corrosive.
x. FEDERAL TACTICAL TRU .308 168GR RIFLE ROUND - cost: $398 per case
of 500; quantity: 10 cases. The tactical ballistic tip bullet’s polymer tip provides
excellent accuracy, while tapered jackets allow rapid, yet controlled,
expansion. The ammunition utilizes low-flash propellants; the best Federal
brass and crimped primers. This Federal 308 Winchester TRU ammo features
brass cases, boxer primer and is non-corrosive and 100% reloadable. It
features a 168 grain ballistic tip.
b. Purpose
To be used as precision weapons to address threats that exceed the capability of the
Department's standard-issue handgun.
c. Authorized Use
Only members POST-certified in the use of the rifle are authorized to deploy them in
the field.
d. Lifespan
Listed .223/5.56 caliber rifles have a 10-15 year lifespan.
Listed .308 caliber rifles have a 10-15 year lifespan.
Listed ammunition is good until used.
e. Fiscal Impact
The Department budgets $106,000 annually for all Department firearms ammunition.
Annual maintenance cost is approximately $50 for each rifle.
f. Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of
the rifle. All members that operate any rifle are required to pass a range qualification
two times a year
g. Legal and Procedural Rules
The Department will only utilize rifles for official law enforcement purposes, pursuant to
Department Policy and State and Federal law.
11. CHEMICAL AGENT AND SMOKE CANISTERS: Canisters that contain chemical agents that
are released when deployed.
a. Description, Quantity, Capabilities and Purchase Cost
i. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER, OC, #1030 - Cost:
$43; quantity: 10. The design of the Tri-Chamber Flameless OC Grenade allows
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the contents to burn within an internal can and disperse the agent safely with
reduced risk of fire. The grenade is designed primarily for indoor, tactical
situations to detect and/or dislodge a barricaded subject. The Tri-Chamber
Flameless Grenade can be used in crowd control as well as tactical deployment
situations by Law Enforcement and Corrections but was designed with the
barricade situation in mind. Its applications in tactical situations are primarily to
detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber
Flameless Grenade is to minimize the risks to all parties through pain
compliance, temporary discomfort, and/or incapacitation of potentially violent or
dangerous subjects. The Tri-Chamber Flameless Grenade provides the option
of delivering a pyrotechnic chemical device indoors, maximizing the chemicals’
effectiveness via heat and vaporization, while minimizing or negating the
chance of fire to the structure.
ii. DEFENSE TECHNOLOGY, RIOT CONTROL CONTINUOUS DISCHARGE
GRENADE, CS, #1082 - Cost: $27; quantity: 75. The Riot Control CS Grenade
is designed specifically for outdoor use in crowd control situations with a high
volume continuous burn that expels its payload in approximately 20-40 seconds
through four gas ports located on the top of the canister. The volume of smoke
and agent is vast and obtrusive. This launchable grenade is 6.0 inches by 2.35
inches and holds approximately 2.7 ounces. of active agent.
iii. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER CS GRENADE,
#1032 - Cost $36; quantity: 20. The design of the Tri-Chamber Flameless CS
Grenade allows the contents to burn within an internal can and disperse the
agent safely with reduced risk of fire. The grenade is designed primarily for
indoor tactical situations to detect and/or dislodge a barricaded subject. This
grenade will deliver approximately .70 ounces. of agent during its 20-25
seconds burn time. The Tri-Chamber Flameless Grenade can be used in crowd
control as well as tactical deployment situations by Law Enforcement and
Corrections but was designed with the barricade situation in mind. Its
applications in tactical situations are primarily to detect and/or dislodge
barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to
minimize the risks to all parties through pain compliance, temporary discomfort,
and/or incapacitation of potentially violent or dangerous subjects. The Tri-
Chamber Flameless Grenade provides the option of delivering a pyrotechnic
chemical device indoors, maximizing the chemicals’ effectiveness via heat and
vaporization, while minimizing or negating the chance of fire to the structure.
iv. DEFENSE TECHNOLOGY, SPEDE-HEAT CONTINUOUS DISCHARGE
CANISTER, CS, #1072 - Cost: $29; quantity: 15. The Spede-Heat™ CS
canister is a high volume, continuous burn. It expels its payload in
approximately 20-40 seconds. The payload is discharged through four gas ports
on top of the canister, three on the side, and one on the bottom. This launchable
canister is 6.12 inches by 2.62 inches and holds approximately 2.9 ounces. of
active agent.
v. DEFENSE TECHNOLOGY, POCKET TACTICAL CANISTER, CS, #1016 -
Cost: $25; quantity: 20. The Pocket Tactical CS Canister is small and
lightweight. The 0.9 ounces of active agent will burn approximately 20-40
seconds. At 4.75 inches by 1.4 inches in size, it easily fits in most tactical
pouches. Though this device is slightly over four inches in length, it produces
a smoke cloud so fast it appears to be an enveloping screen produced by a full-
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size tactical canister.
vi. DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER SAF-SMOKE
GRENADE, #1033 - Cost: $35; quantity: 10. The design of the Tri-Chamber
Flameless Saf-Smoke Grenade allows the contents to burn within an internal
can and disperse the agent safely with reduced risk of fire. The grenade is
designed primarily for indoor tactical situations to detect and/or dislodge a
barricaded subject. This grenade will deliver approximately .70 ounces of agent
during its 20-25 seconds burn time. The Tri-Chamber Flameless Grenade can
be used in crowd control as well as tactical deployment situations by Law
Enforcement and Corrections but was designed with the barricade situation in
mind. Its applications in tactical situations are primarily to detect and/or dislodge
barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to
minimize the risks to all parties through pain compliance, temporary discomfort,
and/or incapacitation of potentially violent or dangerous subjects. The Tri-
Chamber Flameless Grenade provides the option of delivering a pyrotechnic
chemical device indoors, maximizing the chemicals’ effectiveness via heat and
vaporization, while minimizing or negating the chance of fire to the structure.
vii. DEFENSE TECHNOLOGY, MAXIMUM HC (Hexachloroethane) SMOKE,
LARGE STYLE CANNISTER, #1073 - Cost: $37; quantity: 5. Designed
specifically for outdoor use in crowd management situations, the Maximum
Smoke Grenade is a high volume, slow burning device that deploys large
quantities of grey-white colored smoke for approximately 1.5 to 2 minutes. The
device should be deployed utilizing wind advantage. It can be utilized as a
carrying agent (multiplier) for smaller OC, CN or CS munitions, or for concealing
the movement of agency personnel. It may also be used as a distraction to
focus attention away from other activities.
viii. DEFENSE TECHNOLOGY, OC VAPOR AEROSOL GRENADE, #1056 - Cost:
$44; quantity: 10. The Defense Technology OC Vapor Aerosol Grenade is for
Law Enforcement and Corrections use to deliver a high concentration of
Oleoresin Capsicum (OC) in a powerful mist. The grenade is designed for
indoor use in confined areas and, once deployed, inflames the mucous
membranes and exposed skin resulting in an intense burning sensation. The
incapacitating effect of the OC Vapor on the subject is dramatic with minimal
decontamination needed. Removing the subject from the affected area to fresh
air will resolve respiratory effects within minutes. The OC Vapor Aerosol
Grenade is ideal for cell extractions or barricade situations where the use of
pyrotechnic, powder or liquid devices is not practical or desired.
ix. DEFENSE TECHNOLOGY, OC AEROSOL GRENADE 1.3% FOGGER, 6
OUNCE, #56854 - Cost: $22; quantity: 10. The 6 ounce OC Aerosol Grenade
will deliver its payload of 1.3% MC% OC in 20-25 seconds. This is an
anatomized mist which enhances the pungent 1.3% OC formulation. Ideal for
area denial; areas like attics, garages, etc. This device has minimum cleanup.
The canister may also be handheld to direct the spray pattern. This product is
designed to provide room clearing ability with minimum cleanup requirements.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or
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undesirable. Situations for use of the less lethal weapon systems may include, but
are not limited to:
i. Self-destructive, dangerous and/or combative individuals.
ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained.
iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
vi. Tactical situations involving the deployment of the Department's SWAT Team.
c. Authorized Use
Only officers who have received POST certification in the use chemical agents are
authorized to use chemical agents.
d. Training
Sworn members utilizing chemical agent canisters are certified by POST less lethal
and chemical agent instructors.
e. Lifespan
5 years from manufacturing date.
f. Fiscal Impact
No annual maintenance.
g. Legal and Procedural Rules
The Department shall only utilize explosive Chemical Agent and Smoke Canisters for
official law enforcement purposes, pursuant to State and Federal law.
12. EXPLOSIVE BREACHING TOOLS: Tools that are used to conduct an explosive breach.
a. Description, Quantity, Capabilities and Purchase Cost
i. PRIMACORD REINFORCED DETONATING CORD - Cost: $1 per foot;
quantity: 2000 feet. The detonating cord is a thin, flexible plastic tube usually
filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN
exploding at a rate of approximately 6400 m/s, any common length of
detonation cord appears to explode instantaneously. It is a high-speed fuse
which explodes, rather than burns, and is suitable for detonating high
explosives.
ii. ORICA EXEL MS 40’ SHOCK TUBE - Cost: $12 each; quantity: 40. The
detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol
tetranitrate (PETN, pentrite). With the PETN exploding at a rate of
approximately 6400 m/s, any common length of detonation cord appears to
explode instantaneously. It is a high-speed fuse which explodes, rather than
burns, and is suitable for detonating high explosives.
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iii. ORICA EXEL MS 80’ SHOCK TUBE - Cost: $22 each; quantity: 60. The
detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol
tetranitrate (PETN, pentrite). W ith the PETN exploding at a rate of
approximately 6400 m/s, any common length of detonation cord appears to
explode instantaneously. It is a high- speed fuse which explodes, rather than
burns, and is suitable for detonating high explosives.
iv. BLASTING CAP - Cost: $12; quantity: 100. A blasting cap is a small, sensitive
primary explosive device generally used to detonate a larger, more powerful
and less sensitive secondary explosive such as TNT, dynamite or plastic
explosive. Blasting caps come in a variety of types, including non-electric caps,
electric caps, and fuse caps.
v. BOOSTERS (Southwest Explosives) 18 GRAM UNCRIMPED - Cost: $8 each;
quantity: 150. A high power explosive, made of a highly safe pentolite charge
(a blend of TNT and PETN) for the initiation of blasting agents. Its main
purpose is to provide an energetic pulse high enough to rapidly achieve an
optimum velocity of detonation of the explosive.
vi. DONOVAN DURASHEET PETN C-1, SHEET EXPLOSIVE - Cost $60 per
pound; quantity: 20 pounds. Used in conjunction with detonating cord and
blasting caps to gain entry into a fortified structure.
vii. DONOVAN DURASHEET PETN C-2, SHEET EXPLOSIVE - Cost $55 per
pound; quantity: 40 pounds. Used in conjunction with detonating cord and
blasting caps to gain entry into a fortified structure.
viii. DONOVAN DURASHEET PETN C-3, SHEET EXPLOSIVE - Cost $45 per
pound; quantity: 10 pounds. Used in conjunction with detonating cord and
blasting caps to gain entry into a fortified structure.
ix. ROYAL ARMS RDI ROYAL DUAL INITIATOR SHOCK TUBE IGNITER, NSN#
1375-01-533-5362 - Cost: $590; quantity: 6. Mechanical initiator for explosive
breaching operations.
x. REMINGTON 870 BREACHING SHOTGUN w/ Royal Arms International
Barrel - Cost: $500; quantity: 1. This weapon allows for breachers to safely
utilize shotgun breaching rounds in order to destroy deadbolts, locks and
hinges. The stand-off that is attached to the end of the barrel allows for positive
placement of the gun into the correct position and vents gases to prevent
overpressure. This weapon can also defeat windows and sliding glass doors
with a flash bang round. A less lethal 2.4 inch, 12-gauge shotgun round firing
a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290
feet per second (FPS).
xi. ROYAL ARMS TESAR-3 GREEN CAP 375 GRAIN CLAYVON FRANGIBLE
BREACHING ROUND - Cost: $5 per round; quantity: 25. The round is fired
from a breaching shotgun and is used to destroy deadbolts, locks and hinges.
xii. ROYAL ARMS HP CUTTER 12 GAUGE HOLLOW POINT REBAR CUTTER
BREACHING ROUND - Cost: $6 per round; quantity: 25. The round is fired
from a breaching shotgun and is used to cut rebar, penetrate security glass,
car doors and can penetrate engine blocks.
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b. Purpose
To safely gain entry into a fortified structure.
c. Authorized Use
Explosive breaching may only occur after authorization by the Incident Commander or
SWAT Commander in the field and during training exercises.
d. Lifespan
Breaching Shotgun: 25 years
Shock Tube: 25 years
Blasting Caps: 10 years
Boosters: 10 years
Detonating cord: 10 years
Sheet Explosive: 10 years
Breaching Rounds: 5 years
e. Fiscal Impact
Annual maintenance cost is approximately $50.
f. Training
All officers who use explosive breaching tools shall attend at least 40 hours of
explosive breaching instruction and must additionally receive quarterly training for
explosive operations.
.
g. Legal and Procedural Rules
The Department shall only utilize explosive breaching for official law enforcement
purposes, pursuant to State and Federal law.
13. PEPPERBALL LAUNCHER: A less-lethal device that discharges irritant projectiles.
a. Description, Quantity, Capabilities and Purchase Cost
i. PepperBall FTC, #720-01-0002 - Cost: $589; quantity 31. The Full Tactical
Carbine System (FTC) is a compressed air-powered launcher designed to fire
non-lethal PepperBall projectiles. The PepperBall FTC is a gravity feed system
with a hopper containing up to 180 .68 caliber projectiles at one time, which is
designed for use with high-pressure air.
ii. PepperBall INERT Powder Projectiles - Cost: $1 per projectile; quantity: 2000
projectiles. Inert projectiles used for training purposes.
iii. PepperBall LIVE PAVA (OC) - Cost: $2.27 per projectile; quantity: 5000
projectiles. The basic PepperBall projectile, it contains 2% PAVA and is
designed for direct impact and area saturation especially in confined, interior
spaces. Discharged from a PepperBall Launcher, the projectile has a velocity
of 280-350 FPS. The projectile has a direct impact of 60 feet and an area of
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saturation of 150+ feet.
iv. PepperBall LIVE-X PAVA (OC) - Cost: $3 per projectile; quantity: 5000
projectiles. LIVE-X contains a concentrated amount of PAVA pepper powder.
One round of LIVE-X™ contains the equivalent to 10 LIVE PepperBall rounds.
This projectile is best for direct impact or area saturation. Discharged from a
PepperBall Launcher, the projectile has a velocity of 280-350 FPS. The
projectile has a direct impact of 150 feet and an area of saturation of 390+ feet.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or
undesirable. Situations for use of the less lethal weapon systems may include but are
not limited to:
i. Self-destructive, dangerous and/or combative individuals
ii. Riot/crowd control and civil unrest incidents
iii. Circumstances where a tactical advantage can be obtained
iv. Potentially vicious animals
v. Training exercises or approved demonstrations
vi. Tactical situations involving the deployment of the Department's SWAT Team.
c. Authorized Use
Only those officers who have been trained in the use of PepperBall launchers are
authorized to use the PepperBall launchers.
d. Training
Sworn members utilizing PepperBall launchers and projectiles are trained in their use
by POST-certified less lethal and chemical agent instructors.
e. Lifespan
i. PepperBall FTC Launcher: 20 years
ii. All PepperBall projectiles have a lifespan of 3 years.
f. Fiscal Impact
Annual maintenance cost is approximately $50 for each launcher.
g. Legal and Procedural Rules
The Department shall only utilize PepperBall launchers for official law enforcement
purposes, pursuant to State and Federal law.
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