HomeMy WebLinkAbout2023-01-17 Agenda Packet - Hybrid (LAST ZOOM)IN-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, January 17, 2023
Special Meeting of the Successor Agency
3:30 PM Closed Session / 5:00 PM Study Session
6:00 PM Regular Meeting
Council Chambers
2000 Main Street
Huntington Beach, CA 92648
--or--
Virtual via Zoom Webinar
MAYOR AND CITY COUNCIL
TONY STRICKLAND, Mayor
GRACEY VAN DER MARK, Mayor Pro Tem
RHONDA BOLTON, Councilmember
PAT BURNS, Councilmember
DAN KALMICK, Councilmember
CASEY McKEON, Councilmember
NATALIE MOSER, Councilmember
STAFF
AL ZELINKA, City Manager
MICHAEL E. GATES, City Attorney
ROBIN ESTANISLAU, City Clerk
ALISA BACKSTROM, City Treasurer
1
AGENDA January 17, 2023City Council/Public Financing
Authority
3:30 PM - COUNCIL CHAMBERS
CALL TO ORDER
ROLL CALL
Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns
CITY COUNCIL MEMBER COMMENTS (3-Minute Time Limit) - The Mayor will facilitate a voluntary
opportunity for members of the Huntington Beach City Council to individually make brief
comments to the public. Please note that the Brown Act does not allow for lengthy comments,
discussion, or action on topics that are not on the agenda.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda
Distribution)
PUBLIC COMMENTS (3 Minute Time Limit)
At this time, the City Council will receive comments from members of the public regarding any
topic, including items on the Study Session and/or Closed Session agendas. Please note that the
Brown Act does not allow discussion or action on topics that are not on the agenda. Members of
the public who would like to speak directly with a Councilmember on an item not on the agenda
may consider scheduling an appointment by contacting the City Council's Administrative
Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org.
Individuals wishing to provide a comment on item(s) scheduled for Study Session or 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.
CLOSED SESSION ANNOUNCEMENT(S)
23-0371.Mayor Strickland to announce: Pursuant to Government Code §
54957.6, the City Council takes this opportunity to publicly introduce
and identify designated labor negotiators, Al Zelinka, City Manager
and Peter Brown Chief Negotiator; also in attendance: Jose
Rodriguez, Human Resources Manager, Travis Hopkins, Assistant
Page 1 of 9
2
AGENDA January 17, 2023City Council/Public Financing
Authority
City Manager; Michael E. Gates, City Attorney; Mike Vigliotta, Chief
Assistant City Attorney; Eric Parra, Chief of Police; and Sunny Rief,
Assistant Chief Financial Officer, who will be participating in today's
Closed Session discussions regarding labor negotiations with:
Huntington Beach Police Officers’ Association (HBPOA).
RECESS TO CLOSED SESSION
CLOSED SESSION
23-0322.Police Department representatives to conduct active shooter
training with Council Members and City staff (Council Chambers)
23-0223.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section
54957.6.) Agency designated representatives: Al Zelinka, City
Manager, and Peter Brown, Chief Negotiator; also in attendance:
Jose Rodriguez, Human Resources Manager; Travis Hopkins,
Assistant City Manager; Michael E. Gates, City Attorney; Mike
Vigliotta, Chief Assistant City Attorney; Eric Parra, Chief of Police;
and Sunny Rief, Assistant Chief Financial Officer. Employee
Organization: Police Officers’ Association (POA).
23-0234.CONFERENCE WITH LEGAL COUNSEL-LITIGATION (Gov. Code
section 54956.9(d)(4).): Number of matters: One (1) - Challenge to
State’s RHNA.
23-0305.CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION
(Gov. Code section 54956.9(d)(2).): Number of matters: One (1).
23-0356.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION.
(Paragraph (1) of subdivision (d) of Section 54956.9). Name of case:
Nicholas Vella v. City of Huntington Beach, Workers’ Comp. Case
No. COHB-22-0063.
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING
STUDY SESSION
23-0317.Housing Element
Page 2 of 9
3
AGENDA January 17, 2023City Council/Public Financing
Authority
6:00 PM – COUNCIL CHAMBERS
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALL TO
ORDER THE SPECIAL MEETING OF THE SUCCESSOR AGENCY
ROLL CALL
Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns
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.
22-11168.Pat Goodman of Self-Help Interfaith Program (SHIP) and member of
the Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda
Distribution)
PUBLIC COMMENTS (3 Minute Time Limit)
At this time, the City Council will receive comments from members of the public regarding any
topic, including items on the open session agenda. Please note that the Brown Act does not allow
discussion or action on topics that are not on the agenda. Members of the public who would like
to speak directly with a Councilmember on an item not on the agenda may consider scheduling an
appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or
emailing the entire City Council at city.council@surfcity-hb.org.
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.
Page 3 of 9
4
AGENDA January 17, 2023City Council/Public Financing
Authority
While the City Council welcomes public involvement and supports and defends free speech, the
City Council rejects comments from anyone that are discriminatory, defamatory or otherwise not
protected free 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 APPOINTMENT ANNOUNCEMENTS
Councilmembers may make brief announcements on any appointments made to a board,
committee, or commission. Councilmembers may not discuss or take any action on these
announcements. Announcements are limited to 1 minute.
AB 1234 REPORTING
Per AB 1234 (Government Code Section 53232.3(d)) Councilmembers who attend a meeting,
conference, or similar event at the expense of the City must provide a brief report of the meeting,
conference, or similar event during the next regular City Council meeting. Reports are limited to 1
minute.
OPENNESS IN NEGOTIATION DISCLOSURES
Councilmembers must publicly disclose any meetings or communications with City employee
associations, related to the negotiations of labor agreements. Disclosures are limited to 1 minute
and must be made by the next regular City Council Meeting.
CITY MANAGER'S REPORT
22-6959.Welcome to New OneHB Team Members
23-02510.Update on Downtown Street Closure
CITY TREASURER'S REPORT
22-91611.Adopt Resolution No. 2023-03 approving the 2023 Investment Policy
Adopt Resolution No. 2023-03, “A Resolution of the City Council of the City of Huntington
Beach Approving the Statement of Investment Policy 2023.”
Recommended Action:
CITY ATTORNEY'S REPORT
23-04112.Air Show Environmental Review
Page 4 of 9
5
AGENDA January 17, 2023City Council/Public Financing
Authority
CONSENT CALENDAR
Office of City Clerk
22-112513.Approve and Adopt Minutes
A) Approve and adopt the City Council/Public Financing Authority regular meeting
minutes of December 6, 2022; and ,
B) Approve and adopt the City Council/Public Financing Authority regular meeting and the
Housing Authority, Parking Authority and Successor Agency special meeting minutes of
December 20, 2022.
Recommended Action:
22-79214.Annual Review of the City Code of Ethics
Direct the City Clerk to record in the official minutes that the City Code of Ethics was
presented to the City Council, City Manager, Chairpersons, and City Department Directors
for their review and distribution as required by Resolution No. 2016-73.
Recommended Action:
21-38515.Adopt Resolution No. 2023-01 Amending the Conflict of Interest
Code
Adopt Resolution No. 2023-01, “A Resolution of the City Council of the City of Huntington
Beach Amending its Conflict of Interest Code.”
Recommended Action:
Finance Department
23-01816.Adopt Successor Agency Resolution Nos. 2023-01 and 2023-02
approving the Recognized Obligation Payment Schedule (ROPS) and
Administrative Budget for the Huntington Beach Successor Agency
for the period of July 1, 2023, through June 30, 2024, in accordance
with Health and Safety Code Section 34177 and related actions
A) Adopt Resolution No. 2023 -01, “A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the Successor Agency
Administrative Budget for the Period July 1, 2023, through June 30, 2024;” and,
B) Adopt Resolution No. 2023-02, “A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the Recognized
Obligation Payment Schedule for the Period July 1, 2023 - June 30, 2024 (‘ROPS
23-24’).”
Recommended Action:
Page 5 of 9
6
AGENDA January 17, 2023City Council/Public Financing
Authority
Police Department
22-111417.Volunteer Release & Waiver of Liability Agreement
Staff recommends City Council approve use of the Volunteer Release & Waiver of Liability
Agreement (Attachment) as drafted and approved by the City Attorney.
Recommended Action:
ADMINISTRATIVE ITEMS
23-02818.Comprehensive report on City resources used to address
homelessness and proposed 90-day plan to enforce City and State
laws relating to homelessness
A) Receive and file this report; and ,
B) Approve the proposed 90-Day Plan and appropriate one-time funding of $500,000 in
the FY 2022/23 General Fund budget .
Recommended Action:
23-04219.Consider selection of Huntington Beach’s Orange County Power
Authority (OCPA) Default Energy Product Rate and the City of
Huntington Beach’s Municipal Accounts Rate Selection.
The following options are available to the City Council for the default energy product for
new OCPA Customers in Huntington Beach:
A) Take no action. The current, default energy offering of 100% Renewable will remain for
all new OCPA customers;
B) Select the Smart Choice option (at least 69% renewable energy) as the default offering
for new OCPA customers; or
C) Select the Basic Choice option (at least 38.5% renewable energy) as the default
offering for new OCPA customer.
The following options are available to the City Council for City of Huntington Beach
municipal accounts.
A) Take no action, and retain the current energy offering of 100% Renewable for
municipal accounts;
B) Select Smart Choice (at least 69% renewable energy) for municipal accounts; or
Recommended Action:
Page 6 of 9
7
AGENDA January 17, 2023City Council/Public Financing
Authority
C) Select Basic Choice (at least 38.5% renewable energy) for municipal accounts.
23-01220.Approve for Introduction Ordinance No. 4276 Amending Chapter 2.07
of the HBMC Relating to Campaign Reform
Approve for Introduction Ordinance No. 4276,”An Ordinance of the City of Huntington
Beach Amending Chapter 2.07 of the Huntington Beach Municipal Code Relating to
Campaign Reform.”
Recommended Action:
23-01721.Approve for Introduction Ordinance No. 4277 Amending Chapter 1.18
of the Huntington Beach Municipal Code Relating to Anonymous
Complaints
Approve for Introduction Ordinance No. 4277, “An Ordinance of the City of Huntington
Beach Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to
Anonymous Complaints.”
Recommended Action:
COUNCILMEMBER ITEMS
23-03822.Submitted by Mayor Strickland - Develop a proposal for a Public
Memorial honoring Don Andrews McAllister
Direct staff to work with the Community and Library Services Commission and leadership
of the Greater Huntington Beach Interfaith Council to develop a proposal for a public
memorial honoring Don MacAllister on Tower Zero. Return to City Council within 90 days
to present the proposal for consideration.
Recommended Action:
23-04923.Submitted by Mayor Pro Tem Van Der Mark - Request to End
Expanded Outdoor Dining and Retail on Main Street and other
nearby areas in Downtown
Direct the City Manager to work with staff to give the downtown businesses on Main St.,
who are occupying public areas with outdoor dining and retail, 30-days’ notice to remove
all expanded outdoor dining and to return Main St. to its pre-COVID-19 state. This
reversal of the outdoor dining and retail expansions by small business will remain until the
City Council makes a decision about a long-term revitalization plan. Additionally, direct
the City Manager to require tenants who have expanded on public rights-of-way nearby
Main Street as well as on private property to scale back to approved patio areas until they
are permanently permitted for expansion. Lastly, direct the City Manager to reinstitute
parking meters to their pre-Covid state on Main Street as well. We anticipate that this
restoring of Main St., downtown to its pre-COVID-19 state will require support from
Community Development, Community and Library Services, Police Department, and
Recommended Action:
Page 7 of 9
8
AGENDA January 17, 2023City Council/Public Financing
Authority
Public Works.
23-05124.Submitted by Mayor Pro Tem Van Der Mark - Request to Implement
a Managed Hiring Process for Vacant City Staff Positions (with
limited exceptions)
Direct the City Manager to take necessary measures to develop and implement a
“managed hiring” process for City staff position vacancies that results in only necessary
hiring for public safety (including Police and Fire Departments), building inspection and
code enforcement, legal services (City Attorney's Office), infrastructure maintenance and
operation, essential support services, meeting Charter and Municipal Code requirements,
filling interim/permanent Department Head vacancies, etc.
This “managed hiring” process is meant to be temporary and is designed to allow the City
Manager to prepare and present a report for City Council at its regular meeting on
February 21, 2023, about the state of the City’s budget and financial health, as well as
staffing levels, vacancies, the costs of filling vacancies, and any other aspect of citywide
reorganization or planned increase in fiscal responsibility and economic efficiency.
Recommended Action:
23-02925.Submitted by Councilmember McKeon - Request to Repeal
Ordinance No. 3907 Related to the City Treasurer’s Role
Direct the City Attorney and the City Manager, in collaboration with the City Treasurer, to
return to City Council at a regular meeting in February 2023 with the necessary actions to
reverse Ordinance 3907 and restore the elected City Treasurer’s duties, in full, to those
provided in Section 311 of the City Charter.
Recommended Action:
23-04326.Submitted by Councilmember McKeon - Request to Update and
Develop Objective Standards for Development within the City
Direct the City Manager to retain the required consultant(s) to work with Community
Development Department, Fire Department, Public Works Department and the City
Attorney's Office to update the Municipal Code including the Zoning, building and fire
codes to reflect improved objective standards for development, including removing any
references to "alternative means and methods" from the fire code with respect to
multifamily development and, to return to City Council by end of March with proposals for
improved objective development standards.
Recommended Action:
23-04427.Submitted by Councilmember Burns - City Owned Oil Well Operation
and Production
Direct the City Manager to return to the City Council within 60 days with a report on the
Recommended Action:
Page 8 of 9
9
AGENDA January 17, 2023City Council/Public Financing
Authority
number of City owned wells, locations, historical production and capacity, and revenue
from the sale of oil. The wells are aging, require ongoing maintenance when operational,
and there will be costs to become operational. A full conditions assessment, cost benefit
analysis, and plan to resume operations should be included in the report.
23-04528.Submitted by Councilmember Burns - Appointments to Boards and
Commissions
Any Councilmember with more than one appointee to a Board or Commission will need to
select a single appointee moving forward. Anyone Board Member or Commissioner who
is not selected by the Council Member, will be excused. This is intended to provide a more
efficient Board and Commission to operate as the Commissions are designed.
Direct the City Manager to facilitate the adjusting of Boards and Commissions such that
those with direct Councilmember appointments be reduced or limited to a 7-member
Board or Commission - one appointee for each Councilmember and no more. If any
Resolutions or other Council action is required to make this modification, return to Council
at the next regular meeting with whatever approvals are necessary from Council.
Recommended Action:
23-04629.Submitted by Councilmember Burns - Finance Commission
Direct the City Manager to immediately facilitate monthly Finance Commission meetings
and direct the City Manager to accommodate and facilitate the Finance Commission to
undertake reviews the Finance Commission, in its citizen-driven oversight, deems
necessary. The Finance Commission will review, analyze, and consider the accountability,
honesty, integrity, fiscal sustainability, community involvement, and openness of the City’s
financial obligations. Direct the City Manager to update the Huntington Beach Municipal
Code Section 2.109, Finance Commission, to reflect a monthly meeting schedule with the
modified duties and agenda items.
Recommended Action:
ADJOURNMENT
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing
Authority is Tuesday, February 7, 2023, 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
10
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-037 MEETING DATE:1/17/2023
Mayor Strickland to announce: Pursuant to Government Code § 54957.6, the City Council
takes this opportunity to publicly introduce and identify designated labor negotiators, Al
Zelinka, City Manager and Peter Brown Chief Negotiator; also in attendance: Jose Rodriguez,
Human Resources Manager, Travis Hopkins, Assistant City Manager; Michael E. Gates, City
Attorney; Mike Vigliotta, Chief Assistant City Attorney; Eric Parra, Chief of Police; and Sunny
Rief, Assistant Chief Financial Officer, who will be participating in today's Closed Session
discussions regarding labor negotiations with: Huntington Beach Police Officers’ Association
(HBPOA).
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™11
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-032 MEETING DATE:1/17/2023
Police Department representatives to conduct active shooter training with Council Members
and City staff (Council Chambers)
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™12
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-022 MEETING DATE:1/17/2023
CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency
designated representatives: Al Zelinka, City Manager, and Peter Brown, Chief Negotiator; also
in attendance: Jose Rodriguez, Human Resources Manager; Travis Hopkins, Assistant City
Manager; Michael E. Gates, City Attorney; Mike Vigliotta, Chief Assistant City Attorney; Eric
Parra, Chief of Police; and Sunny Rief, Assistant Chief Financial Officer. Employee
Organization: Police Officers’ Association (POA).
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™13
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-023 MEETING DATE:1/17/2023
CONFERENCE WITH LEGAL COUNSEL-LITIGATION (Gov. Code section 54956.9(d)(4).):
Number of matters: One (1) - Challenge to State’s RHNA.
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™14
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-030 MEETING DATE:1/17/2023
CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (Gov. Code section 54956.9
(d)(2).): Number of matters: One (1).
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™15
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-035 MEETING DATE:1/17/2023
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision
(d) of Section 54956.9). Name of case: Nicholas Vella v. City of Huntington Beach, Workers’
Comp. Case No. COHB-22-0063.
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™16
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-031 MEETING DATE:1/17/2023
Housing Element
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™17
2021-2029
Housing
Element Update
City Council Study Session
January 17, 2023
18
Housing Element Update
• Two main components
• Housing Element
• Policy and planning document
• Mandated element of the
General Plan
• Implementation Actions
• Accommodates the City’s plan
for housing through zoning (i.e.
– RHNA)
• Affordable Housing Overlay
• Both must be completed in
order to obtain HCD
certification
19
Housing Element Status
• 11/16/22 – Planning Commission recommended
approval to the City Council
Housing Element Update
Affordable Housing Overlay
Environmental Impact Report
•11/29/22 – City Council continued to special meeting
on 12/8/22 with public hearing open
• 12/6/22 – City Council cancelled 12/8/22 special
meeting
20
Regional Housing Needs (RHNA)
• RHNA = Regional Housing Needs Allocation
• Initiates the Housing Element Update process
• Quantifies housing needs, by income category, within each
County and City in the SCAG region
• City went through lengthy appeal process with
SCAG and was ultimately denied
State
• HCD
• Regional
determination
SCAG
• Southern
California
Association of
Governments
Huntington Beach
• HB is one of
191 cities & 6
counties that
make up SCAG
HE Goal 2 Provide
adequate sites to
accommodate
projected housing unit
needs at all income
levels identified by the
RHNA.
21
2021 – 2029 Huntington Beach RHNA
Income Category % of Median Family
Income
2022 Annual Income
Range
RHNA Allocation
(Housing Units)
Min. Max.
Very Low Income 0 -50% MFI -- $67,750 3,661 units
Low Income 51 – 80% MFI $67,751 $108,400 2,184 units
Moderate Income 81 – 120% MFI $108,401 $142,900 2,308 units
Above Moderate Income >120% MFI $142,901 >$142,901 5,215 units
Total: 13,368 units
22
Draft RHNA Strategy
Very Low
Income
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
Total
Units
RHNA Target 3,661 2,184 2,308 5,215 13,368
Approved/Pending
Projects 17 285 82 1,371 1,755
ADU 307 170 10 487
Hotel/Motel
Conversion 415 0 0 415
Affordable Housing
Overlays 5,420 2,581 9,541 17,542
Total 6,444 2,833 10,922 20,199
RHNA Met?YES YES YES YES
23
Affordability Assumptions & No Net Loss
• Affordability Assumptions
• City owned sites: 100% lower income
•≥30 du/ac: Affordable Housing Overlay sites
• 30% lower income
• 15% moderate income
• 55% above moderate
• Affordability assumptions consider that some sites will be developed as 100% affordable (lower income) projects & some sites will increase affordability to utilize density bonus
•No Net Loss (SB 166) means that the City must maintain sites to accommodate the RHNA by income level throughout the planning period
• The reason we plan for more units than the RHNA
• HCD recommends a 15% to 30% buffer
24
Why do we plan for more units than the
RHNA?
RHNA Targets
44% lower income
56% moderate & above moderate
Example: 100 unit project
30% lower income = 30 units
70% moderate & above moderate
income = 70 units
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
RHNA Affordability
Assumptions
44
30
56
70
25
Draft Affordable Housing Overlay
•Applied to entire Housing
Element site inventory
• Includes “No Net Loss” buffer
•Must provide 20% low
income on site
•Sunsets at end of 6th cycle
• Unless City Council extends
•Properties retain base land
use & zoning
• No Net Loss situation avoided
due to buffer
26
“No Net Loss” Example
Two things must occur
1. A project has to be proposed
2. The project site must be in the Housing Element
Project Proposed
- 100 units total
- 20 low income units
Is the project
listed in the
Housing
Element?
HE Inventory
- 100 units total
- 30 low income units
- 15 mod. income units
- 55 market rate units
Is there a
shortfall of units?
- Total units
- Income category
Shortfall Units
Total – 0
Low – 10 units
Mod. – 15 units
No Net Loss
situation exists
27
Options to Accommodate the RHNA
A. Current Draft Housing Element
• RHNA + buffer will be identified in the Housing Element sites
inventory and accommodated through the Affordable Housing
Overlay
B. Separate the Buffer Sites
• RHNA will be identified in the Housing Element sites inventory
and accommodated through the Affordable Housing Overlay
• Buffer will be identified in the Housing Element but not
accommodated through zoning
• Future City Council approval of Zoning Text Amendments will
be necessary to add buffer sites to the Affordable Housing
Overlay if /when necessary to accommodate RHNA shortfall
due to No Net Loss situation
28
Conclusion
Questions?
29
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-1116 MEETING DATE:1/17/2023
Pat Goodman of Self-Help Interfaith Program (SHIP) and member of the Greater Huntington Beach Interfaith Council
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™30
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-695 MEETING DATE:1/17/2023
Welcome to New OneHB Team Members
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™31
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-025 MEETING DATE:1/17/2023
Update on Downtown Street Closure
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™32
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-916 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Al Zelinka, City Manager
PREPARED BY:Alisa Backstrom, City Treasurer
Subject:
Adopt Resolution No. 2023-03 approving the 2023 Investment Policy
Statement of Issue:
Pursuant to California Government Code, the Treasurer of the local agency may render an annual
statement of investment policy to the legislative body for consideration and adoption. The City
Treasurer, with the assistance of the Investment Advisory Board, has prepared an updated
investment policy.
Financial Impact:
Not Applicable
Recommended Action:
Adopt Resolution No. 2023-03, “A Resolution of the City Council of the City of Huntington Beach
Approving the Statement of Investment Policy 2023.”
Alternative Action(s):
Do not adopt Resolution No. 2023-03.
Analysis:
The City Treasurer is responsible for the administration of the investments of City of Huntington
Beach. The purpose of the Investment Policy is to establish cash management and investment
guidelines for the investment of the City’s unexpended cash balances, which exclude employee
retirement funds, funds governed by bond indenture agreements,and other funds managed
separately. This policy shall apply to each investment transaction and the entire portfolio, which must
comply with the California Government Code, Sections 53600 through 53683, and all other applicable
laws and regulations.
The City’s Investment Policy may be rendered annually to the City Council to ensure its consistency
with the overall objectives of preservation of principal, liquidity and return. The attached Investment
Policy has been reviewed by the City’s Investment Advisory Board and approved as to form by the
City of Huntington Beach Printed on 1/11/2023Page 1 of 3
powered by Legistar™33
File #:22-916 MEETING DATE:1/17/2023
City Attorney.
The investment policy has previously been reviewed and certified by the California Municipal
Treasurers Association, which was founded in 1958 and whose mission is to lead in promoting and
enhancing the fiduciary responsibility and integrity of individuals responsible for public funds. The
Investment Advisory Board reviewed the policy at its meeting of October 20, 2022.
There are two updates to the Investment Policy for 2023, both in Section 10. Authorized and
Suitable Investments.
1) Section 10.(n) With the sharp upward trend in interest rates throughout 2022, longer-term
portfolios lag the market interest rates as securities within the portfolio are typically held until
maturity to avoid losses. The result is that such funds are not available for reinvestment at the
current market rates. Shorter-term investment options became more attractive and the City
moved some funds to the California Asset Management Program (“CAMP”).CAMP is a
California Joint Powers Authority ("JPA") established in 1989 to provide California public
agencies with professional investment services.The CAMP account provides daily liquidity
and is rated AAAm, the highest rating, by Standard & Poor’s.It is a permitted investment for all
local agencies under California Government Code Section 53601(p)and within the City’s
Investment Policy. Previously, the maximum allowable amount for this type of investment
(Joint Powers Authority pools) according to the City’s Investment Policy was $20 million.
However, there is no limit according to the State code. In order to more properly match the
allowable amounts for pools within the City’s Investment Policy, the limit for this type of
investment has been raised to $75 million. This matches the allowable investment amount in
the policy for both the State of California’s LAIF account and the Orange County Investment
Pool. For further information on the California Asset Management Program, please go to:
<https://www.camponline.com/>
2) Section 10.(o) According to the California Government Code Section 53601(q), obligations of
the International Bank for Reconstruction and Development (“IBRD”), International Finance
Corporation (“IFC”), or Inter-American Development Bank (“IADB”), as a category referred to
as “Supranationals,” shall not exceed 30 percent of the agency's moneys. In order to allow for
flexibility and diversification within the portfolio, as well as to match the government code, the
allowable percentage shall be increased from 10 percent to 30 percent of the City’s total
portfolio. As such investments must be rated in a rating category of “AA” or its equivalent or
better (and currently all such allowable investments are rated “AAA”), it is deemed reasonable
to allow this 30 percent limit.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. Resolution No. 2023-03 of the City Council of the City of Huntington Beach adopting the 2023
Investment Policy
2. City of Huntington Beach Investment Policy 2023
City of Huntington Beach Printed on 1/11/2023Page 2 of 3
powered by Legistar™34
File #:22-916 MEETING DATE:1/17/2023
3. PowerPoint presentation
City of Huntington Beach Printed on 1/11/2023Page 3 of 3
powered by Legistar™35
36
1
CITY OF HUNTINGTON BEACH
STATEMENT OF INVESTMENT POLICY
2023
37
2
CITY OF HUNTINGTON BEACH
STATEMENT OF INVESTMENT POLICY
TABLE OF CONTENTS
SECTION
1.0 Purpose..................................................................................................................... 3
2.0 Policy ........................................................................................................................ 3
3.0 Scope......................................................................................................................... 3
4.0 Prudence .................................................................................................................. 4
5.0 Objective .................................................................................................................. 4
6.0 Investment Advisory Board ................................................................................... 5
7.0 Delegation of Authority .......................................................................................... 5
8.0 Ethics and Conflicts of Interest ............................................................................. 6
9.0 Authorized Financial Dealers & Institutions ....................................................... 6
10.0 Authorized & Suitable Investments ...................................................................... 7
11.0 Portfolio Adjustment ............................................................................................ 14
12.0 Collateralization .................................................................................................... 14
13.0 Safekeeping and Custody ..................................................................................... 15
14.0 Diversification ....................................................................................................... 15
15.0 Maximum Maturities ............................................................................................ 16
16.0 Internal Control .................................................................................................... 16
17.0 Performance Standards ........................................................................................ 17
18.0 Reporting ............................................................................................................... 17
19.0 Investment Policy Adoption ................................................................................ 18
Glossary ................................................................................................................. 19
38
3
CITY OF HUNTINGTON BEACH
Statement of Investment Policy
1.0 Purpose:
This policy provides guidelines for the prudent investment of the City’s cash balances in
order to maximize the efficiency of the City’s cash management system while meeting the
daily cash flow demands of the City.
2.0 Policy:
The investment practices and policies of the City of Huntington Beach are based upon
California state law and prudent money management.
3.0 Scope:
This investment policy applies to all financial assets as indicated in Section 3.1 below of
the City of Huntington Beach. These funds are accounted for in the City’s Annual
Comprehensive Financial Report.
3.1 Funds:
The City Treasurer is responsible for investing the cash in the City Treasury for all funds,
except for the employee’s pension funds, which are invested separately by CALPERS,
those funds which are invested separately by the City Treasurer under bond indenture
agreements, and funds which are invested separately by the City Treasurer or trustees under
other agreements approved by Council such as the Retiree Medical Trust, the Post-
Employment Section 115 Trust and the Supplemental Pension Trust. The City Treasurer
will strive to maintain the level of investment of this cash (that is not to be utilized for
operating cash flow in the next six months), as close as possible to 100%. These funds are
described in the City’s annual financial report and include:
3.1.1 General Fund
3.1.2 Special Revenue Funds
3.1.3 Capital Project Funds
3.1.4 Enterprise Funds
3.1.5 Trust and Agency Funds
3.1.6 Debt Service Funds
3.1.7 Infrastructure Funds
39
4
3.1.8 Capital Improvement Reserve Funds
3.1.9 Any new fund created by the legislative body, unless specifically exempted
This investment policy applies to all transactions involving the financial assets and related
activity of the foregoing funds. It is the City’s policy to pool funds for investment purposes
to provide efficiencies and economies of scale. Investing through a pooled account will
provide for greater use of funds by allowing for a more efficient cash flow, a reduction in
transaction costs and a greater access to the market.
4.0 Prudence:
The standard of prudence to be used by the City Treasurer shall be the “prudent investor”
standard. This shall be applied in the context of managing an overall portfolio.
The “Prudent Investor Standard” provides, pursuant to California Government Code
Section 53600.3, that investments shall be made with judgment and care—under
circumstances then prevailing—which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be derived.
The City Treasurer and any designee of the City Treasurer, as investment officers acting in
accordance with written procedures and the investment policy and exercising due
diligence, shall be relieved of personal responsibility for an individual security’s credit risk
or market price changes, provided deviations from expectations are reported to the City
Council in a timely fashion and appropriate action is taken to control adverse
developments.
5.0 Objective:
Consistent with this aim, investments are made under the terms and conditions of
California Government Code Section 53600, et seq. Criteria for selecting investments and
the absolute order of priority are:
5.1 Safety:
Safety of principal is the foremost objective of the investment program. Investments of
the City of Huntington Beach shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio.
40
5
5.2 Liquidity:
The investment portfolio will remain sufficiently liquid to enable the City of Huntington
Beach to meet all reasonably anticipated operating requirements and to maintain
compliance with any indenture agreements, as applicable. Liquidity is essential to the
safety of principal. Furthermore, since all possible cash demands cannot be anticipated,
the portfolio will invest primarily in securities with active secondary and resale markets.
5.3 Return on Investments:
The investment portfolio shall be designed with the objective of attaining a market-average
rate of return throughout budgetary and economic cycles (market interest rates), within the
City of Huntington Beach’s investment policy’s risk parameters and the cash flow needs
of the City. See also Section 17.0.
6.0 Investment Advisory Board:
By City Charter, the City Treasurer is the custodian of all public funds of the City of
Huntington Beach. The City Council members may each appoint one Huntington Beach
resident to serve on an Investment Advisory Board for the purpose of advising the City
Treasurer and the City Council on the City’s investment program. The Investment
Advisory Board will review the investment portfolio for compliance with the adopted
investment policy on a quarterly basis and will prepare an Annual Report.
7.0 Delegation of Authority:
In accordance with the State of California Government Code Section 53607, the City
Council delegates investment authority to the City Treasurer for a period of one year and
such investment authority must be renewed annually. Adoption of this policy constitutes
delegation of investment authority to the City Treasurer for the following year unless
revoked in writing. Within the City Treasurer’s office, the responsibility for the day to day
investment of City funds will be the City Treasurer and may be delegated to such deputy
chosen by the City Treasurer in the absence of the City Treasurer (as allowable per State
of California Government Code Section 41006). The City Treasurer shall be responsible
for all transactions undertaken and shall establish a system of controls to regulate the
activities of subordinate officials.
41
6
8.0 Ethics and Conflicts of Interest:
In addition to state and local statutes relating to conflicts of interest, all persons involved
in the investment process shall refrain from personal business activity that could conflict
with proper execution of the investment program, or which could impair their ability to
make impartial investment decisions. Employees and investment officers are required to
file annual disclosure statements as required for "public officials who manage public
investments" (as defined and required by the Political Reform Act and related regulations,
being Government Code Sections 81000 and the Fair Political Practices Commission
(FFPC)).
9.0 Authorized Financial Dealers and Institutions:
The City Treasurer will maintain a list of the financial institutions and broker/dealers
authorized to provide investment and depository services and will perform an annual
review of the financial condition and registrations of such qualified providers. The City
shall annually send a copy of the current investment policy to all financial institutions and
broker/dealers approved to do business with the City.
As far as feasibly possible, all money belonging to, or in the custody of, a local agency,
including money paid to the City Treasurer or other official to pay the principal, interest,
or penalties of bonds, shall be deposited for safekeeping in national or state chartered
banks, savings associations, federal associations, credit unions, or federally insured
industrial loan companies in this state selected by the City Treasurer or other official having
legal custody of the money; or may be invested in the investments set forth in Section 10.0.
To be eligible to receive local agency money, a bank, savings association, federal
association, or federally insured industrial loan company shall have received an overall
rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal
financial supervisory agency of its record of meeting the credit needs of California's
communities, including low- and moderate-income neighborhoods.
In order to be approved by the City, the dealer must be a “primary” dealer or regional dealer
that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net
Capitol Rule). The institution must have an office in California. The dealer must be
experienced in institutional and public fund trading practices and familiar with the
California Government Code as related to investments appropriate for the City; and, other
42
7
criteria as may be established in the investment procedures. All broker/dealers and
financial institutions who desire to become qualified bidders for investment transactions
must submit a “Broker/Dealer Application” and related documents relative to eligibility
including a current audited annual financial statement, U4 form for the broker, proof of
state registration, proof of Financial Industry Regulatory Authority, Inc. (“FINRA”)
certification and a certification of having read and understood the City’s investment policy
and agreeing to comply with the policy. Capital requirements for registered government
securities brokers and dealers shall meet or exceed the requirements as set forth by the
Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capitol Rule). Such
companies shall also have a minimum of five years of operation.
10.0 Authorized and Suitable Investments:
The City is authorized by California Government Code Section 53600, et. seq. to invest in
specific types of securities. Investments not specifically listed below are deemed
inappropriate and are prohibited:
A. BANKERS ACCEPTANCES, maximum 25% of portfolio (up to 40% with City
Council approval). Maximum term of 180 days.
Banks must have a short term rating of at least A1/P1 and a long-term rating category
of “A” or higher as provided by a nationally recognized statistical rating organization
(“NRSRO”). No more than 10 percent of the agency’s money may be invested in the
bankers acceptances of any one commercial bank pursuant to this section.
B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio.
Maximum term of 3 years (up to 5 years with City Council approval).
May be issued by a nationally or state-chartered bank, a savings association or a federal
association (as defined by Section 5102 of the Financial Code), a state or federal credit
union, or by a federally-licensed or state-licensed branch of a foreign bank. Issuer
must have a short term rating of A1/P1 and a long term rating category of “A” or higher
as provided by an NRSRO. No more than 10 percent of the agency’s money may be
invested in negotiable certificates of deposit of any one issuer.
43
8
C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term of 270
days.
Commercial paper must be of "prime" quality of the highest ranking or of the highest
letter and number rating as provided by an NRSRO. The entity that issues the
commercial paper shall meet all of the following conditions in either paragraph (1) or
paragraph (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation.
(B) Has total assets in excess of five hundred million dollars ($500,000,000).
(C) Has debt other than commercial paper, if any, that is rated in a rating
category of "A" or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation,
trust, or limited liability company.
(B) Has program-wide credit enhancements including, but not limited to,
overcollateralization, letters of credit, or surety bond.
(C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by
an NRSRO.
Split ratings (i.e. A2/P1) are not allowable. No more than 10 percent of the outstanding
commercial paper of any single corporate issue may be purchased. No more than 10
percent of the agency’s money may be invested in Commercial Paper of any one issuer.
D. BONDS ISSUED BY THE STATE OF CALIFORNIA OR ANY OF THE
OTHER 49 UNITED STATES. Maximum term of 5 years.
Bonds must have a rating category of “A” or higher by an NRSRO. No more than 10
percent of the agency’s money may be invested in state bonds of any one issuer.
E. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE
STATE OF CALIFORNIA. Maximum term of 5 years.
Bonds must have a rating category of “A” or higher by an NRSRO. No more than 10
percent of the agency’s money may be invested in city or local agency bonds of any
one issuer.
44
9
F. OBLIGATIONS OF THE UNITED STATES TREASURY. Maximum term of 5
years.
United States Treasury bills, bonds and notes or certificates of indebtedness, for which
the faith and credit of the United States are pledged for the payment of principal and
interest. There is no limit on the percentage of the portfolio that can be invested in this
category.
G. U.S. GOVERNMENT AGENCY SECURITIES (FEDERAL AGENCIES).
Maximum term of 5 years.
Obligations, participations or other instruments of or issued by a federal agency or a
United States government-sponsored enterprise. There is no limit on the percentage of
the portfolio that can be invested in this category.
H. REPURCHASE AGREEMENT. Maximum term of 3 months.
Investments in repurchase agreements may be made, on any investment authorized in
this section, when the term of the agreement does not exceed 3 months. A Master
Repurchase Agreement must be signed with the bank or broker/dealer who is selling
the securities to the City.
I. REVERSE-REPURCHASE AGREEMENTS. (Requires City Council approval
for each transaction).
Reverse repurchase agreements or securities lending agreements may be utilized only
when all of the following conditions are met:
(1) The security to be sold on reverse repurchase agreement or securities lending
agreement has been owned and fully paid for by the local agency for a
minimum of 30 days prior to sale.
(2) The total of all reverse repurchase agreements and securities lending
agreements on investments owned by the local agency does not exceed 20
percent of the base value of the portfolio.
(3) The agreement does not exceed a term of 92 days, unless the agreement
includes a written codicil guaranteeing a minimum earning or spread for the
entire period between the sale of a security using a reverse repurchase
agreement or securities lending agreement and the final maturity date of the
same security.
45
10
(4) Funds obtained, or funds within the pool of an equivalent amount to that
obtained from selling a security to a counterparty (by way of a reverse
repurchase agreement or securities lending agreement), shall not be used to
purchase another security with a maturity longer than 92 days from the
initial settlement date of the reverse repurchase agreement or securities
lending agreement, unless the reverse repurchase agreement or securities
lending agreement includes a written codicil guaranteeing a minimum
earning or spread for the entire period between the sale of a security using a
reverse repurchase agreement or securities lending agreement and the final
maturity date of the same security.
Investments in reverse repurchase agreements, securities lending agreements, or
similar investments in which the local agency sells securities prior to purchase with a
simultaneous agreement to repurchase the security, shall only be made with primary
dealers of the Federal Reserve Bank of New York or with a nationally or state-
chartered bank that has or has had a significant banking relationship with a local
agency.
For purposes of this chapter, "significant banking relationship" means any of the
following activities of a bank: (i) Involvement in the creation, sale, purchase, or
retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness.
(ii) Financing of a local agency's activities. (iii) Acceptance of a local agency's
securities or funds as deposits.
J. MEDIUM-TERM CORPORATE NOTES, maximum 30% of portfolio with a
maximum remaining maturity of 5 years or less.
Notes eligible for investment must have a rating category of “A” or higher by an
NRSRO. No more than 10 percent of the agency’s money may be invested in medium-
term corporate notes of any one issuer.
K. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates
of deposit). Maximum term of 3 years.
Deposits must be made with banks or savings & loan that have a short term rating of
A1/P1 or have a long-term rating category of “A” or higher by an NRSRO. No more
46
11
than 10 percent of the agency’s money may be invested in time-deposits of any one
issuer.
L. MONEY MARKET FUNDS, maximum 15% of portfolio.
No more than 10 percent of the agency’s surplus funds may be invested in shares of
beneficial interest of any one Money Market fund. Local agencies may invest in
“shares of beneficial interest” issued by diversified management companies which
invest only in direct obligations in U.S. Treasury bills, notes and bonds, U.S.
Government Agencies and repurchase agreements with a weighted average of 60 days
or less. They must have the highest rating category from at least two NRSROs, must
maintain a daily principal per share value of $1.00 per share and distribute interest
monthly, and must have a minimum of $500 million in assets under management. The
purchase price of the shares may not include commission.
M. THE LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF is a special fund of the California State Treasury through which any local
government may pool investments. The City may invest up to the maximum allowable
by the State Treasurer’s Office (currently $75,000,000). Investments in LAIF are
highly liquid and may be converted to cash within 24 hours.
N. JOINT POWERS AUTHORITY INVESTMENTS
Shares of beneficial interest issued by a joint powers authority organized pursuant to
Section 6509.7 that invests in the securities and obligations authorized in subdivisions
(a) to (q), inclusive. Each share shall represent an equal proportional interest in the
underlying pool of securities owned by the joint powers authority. The City may invest
up to $75,000,000 per joint powers authority. To be eligible under this section, the
joint powers authority issuing the shares shall have retained an investment adviser that
meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and
Exchange Commission.
(2) The adviser has not less than five years of experience investing in the
securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million
dollars ($500,000,000).
47
12
O. SUPRANATIONALS
United States dollar denominated senior unsecured unsubordinated obligations issued
or unconditionally guaranteed by the International Bank for Reconstruction and
Development (IBRD), International Finance Corporation (IFC), or Inter-American
Development Bank (IDB), with a maximum remaining maturity of five years or less,
and eligible for purchase and sale within the United States. Investments under this
subdivision shall have a rating category of “AA” or better by an NRSRO and shall not
exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.
P. ORANGE COUNTY INVESTMENT POOL (OCIP)
As provided for in California Government Code Section 53684, the local agency may
invest excess funds which are not required for immediate use. The OCIP is a pooled
fund managed by the Orange County Treasurer pursuant to California Government
Code Sections 53601 and 53635. The City may invest up to seventy-five million
$75,000,000 in the OCIP.
48
13
INVESTMENT TYPE MAXIMUM
MATURITY
MAXIMUM SPECIFIED % OF
PORTFOLIO/ MAXIMUM PER
ISSUER
MINIMUM
QUALITY
REQUIREMENTS
Bankers' Acceptances 180 days 25% (up to 40% with Council
approval) / 10%
A1/P1, "A" Rating
Category
Negotiable Certificates of
Deposit
3 years (Up to 5
years with
Council
approval)
30% / 10% A1/P1, "A" Rating
Category
Commercial Paper 270 days 25% / 10% A1, "A" Rating
Category
State Obligations-- CA And
Others 5 years None / 10% "A" Rating Category
City/Local Agency of CA
Obligations 5 years None / 10% "A" Rating Category
U.S. Treasury Obligations 5 years None None
U.S. Government Agency
Obligations 5 years None None
Supranationals:
IBRD, IFC, IDB 5 years 30% "AA" Rating
Category
Repurchase Agreements 3 Months None None
Reverse Repurchase
Agreements 92 days
20% of the base value of the
portfolio. Requires City Council
Approval
None
Medium-Term Corporate
Notes 5 years 30% / 10% "A" Rating Category
Non-negotiable Certificates of
Deposit 3 years None / 10% A1/P1, "A" Rating
Category
Money Market Mutual Funds 60 days 15% / 10% "AAA" Rating
Category
Local Agency Investment
Fund (LAIF) N/A Up to $75,000,000 None
Orange County Investment
Pool (OCIP) N/A Up to $75,000,000 None
Joint Powers Authority N/A None / $75,000,000 See 10.0N above
49
14
10.1 Investment Pools/Money Market funds:
The City Treasurer or designee shall be required to investigate all local government
investment pools and money market mutual funds prior to investing and performing at least
a quarterly review thereafter while the City is invested in the pool or the money market
fund. LAIF is authorized under provisions in Section 16429.1 of the California
Government Code as an allowable investment for local agencies even though some of the
individual investments of the pool are not allowed as a direct investment by a local agency.
The Orange County Investment Pool is maintained for the County and other non-County
entities for the purpose of benefiting from economies of scale through pooled investment
activities and is authorized by Government Code Section 27130. The County is authorized
by Government Code Section 53600 et seq. to invest in specific types of securities. These
codes are the same as are applicable to investment by the City.
11.0 Portfolio Adjustments:
California Government Code Section 53601 states that if a percentage limitation for a
particular category of investment is specified, then that percentage is applicable only at the
date of purchase (settlement date). Should any investment listed in section 10.0 exceed a
percentage-of-portfolio limitation or a percentage-by-issuer limitation due to an incident
such as fluctuation in portfolio size, the affected securities may be held to maturity at the
discretion of the City Treasurer. The City Treasurer may consider
reconstructing/rebalancing the portfolio basing his/her decision on the expected length of
time the portfolio will be unbalanced. As well, the credit criteria listed herein refers to the
credit rating at the time the security is purchased. If a security held in the portfolio is
downgraded by an NRSRO to a level below the quality required by this investment policy,
the City Treasurer will review the credit and make a determination as to whether to sell or
retain such security. The City Treasurer will review the portfolio for such compliance no
less than quarterly.
12.0 Collateralization:
Under provisions of the California Government Code, California banks, and other
depository institutions are required to secure the City’s deposits by pledging government
securities with a value of 110% of principal and accrued interest. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
50
15
having a value of 150% of City’s total deposits. Collateral will always be held by an
independent third party. A clearly marked evidence of ownership (safekeeping receipt)
must be supplied to the City and retained. The market value of securities that underlay a
repurchase agreement shall be valued at 102 percent or greater of the funds borrowed
against those securities and the value shall be adjusted no less than quarterly. Since the
market value of the underlying securities is subject to daily market fluctuations, the
investments in repurchase agreements shall be in compliance if the value of the underlying
securities is brought back up to 102 percent no later than the next business day. The City
Treasurer, at his/her discretion, may waive the collateral requirement for deposits that are
fully insured (current limit is $250,000) by the Federal Deposit Insurance Corporation. The
right of collateral substitution is granted. The City Treasurer or designee shall ensure that
all demand deposits that exceed the FDIC limit (currently $250,000) shall be fully
collateralized with securities authorized under state law and this Investment Policy.
13.0 Safekeeping and Custody:
All City investments shall have the City of Huntington Beach as its registered owner, and
all interest and principal payments and withdrawals shall indicate the City of Huntington
Beach as the payee. All securities will be held with a qualified financial institution,
contracted by the City as a third party custodian with a separate custodial agreement (does
not apply to insured Certificates of Deposit, money market funds, Joint Powers Funds,
Orange County Investment Pool, or the Local Agency Investment Fund). All agreements
and statements will be subject to review annually by external auditors in conjunction with
their audit. All securities shall be acquired by the safekeeping institution on a “Delivery-
Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered
by book entry, physical delivery or by third-party custodial agreement consistent with the
Government Code. The transfer of securities to the counterparty bank’s customer book
entry account may be used for book entry delivery. The City Treasurer or designee shall
require a Broker Trade confirmation for all trades.
14.0 Diversification:
The City’s investment portfolio will be diversified to mitigate incurring unreasonable and
avoidable risks associated with concentrating investments in specific security types,
maturity segment, or in individual financial institutions.
51
16
A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall
be mitigated by investing in those securities with an "A" or above rating and approved
in the investment policy and by diversifying the investment portfolio so that the failure
of any one issuer would not unduly harm the City’s cash flow.
B. Market risk, defined as the risk of market value fluctuations due to overall changes in
the general level of interest rates, shall be mitigated by structuring the portfolio so that
securities mature as much as possible in conjunction with major cash outflows, thus
minimizing the need to sell securities prior to their maturity. It is explicitly recognized
herein, however, that in a diversified portfolio, occasional measured losses are
inevitable and must be considered within the context of overall investment return. The
City’s investment portfolio will remain sufficiently liquid to enable the City to meet
all operating requirements which might be reasonably anticipated.
15.0 Maximum Maturities:
To the extent possible, the City of Huntington Beach will attempt to match its investments
with anticipated cash flow requirements. Unless matched to a specific cash flow, the City
will not directly invest in securities maturing more than five (5) years from the date of
purchase (specifically, the settlement date), unless the legislative body has granted express
authority to make that investment either specifically, or as a part of an investment program
approved by the City Council. The City of Huntington Beach shall not permit more than
50% of its investment portfolio to be invested in securities with maturities over four years.
16.0 Internal Control:
The City Treasurer and the Finance Department shall establish a system of internal controls
designed to prevent loss of public funds due to fraud, employee error, misrepresentation
by third parties, or unanticipated market changes. No investment personnel may engage in
an investment transaction except as provided for under the terms of this policy and the
procedure established by the City Treasurer. The external auditors shall annually review
the investments with respect to the investment policy. This review will provide internal
control by assuring compliance with policies and procedures for the investments that are
selected for testing. Additionally, account reconciliation and verification of general ledger
balances relating to the purchasing or maturing of investments and allocation of interest on
investments to fund balances shall be performed by the Finance Department.
52
17
17.0 Performance Standards:
This investment policy shall be reviewed at least annually by the Investment Advisory
Board and the City Council to ensure its consistency with the overall objectives of
preservation of principal, liquidity, and return, and its relevance to current law and financial
and economic trends. The moneys entrusted to the City Treasurer will be primarily a
passively managed portfolio. However, the City Treasurer will make best efforts to
observe, review, and react to changing conditions that affect the portfolio.
17.1 Market Yield (Benchmark):
The investment portfolio shall be managed to attain a market-average rate of return
throughout budgetary and economic cycles, taking into account the City’s investment risk
constraints and cash flow. Investment return becomes a consideration only after the basic
requirements of investment safety and liquidity have been met. Because the investment
portfolio is designed to operate on primarily a ‘hold-to-maturity’ premise, and because of
the safety, liquidity, and yield priorities, the performance benchmark that will be used by
the Treasurer to determine whether market yields are being achieved shall be the 12-month
moving average of the interpolated 1.5-Year Constant Maturity Treasury (CMT) rate. This
interpolated rate shall be utilized in order to best match the average duration of the
portfolio. However, since return on investment is the least important objective of the
investment portfolio, the benchmark will be used only as a reference tool. The reporting
of a benchmark does not imply that the City Treasurer will add additional risk to the
investment portfolio in order to attain or exceed the benchmark. The prohibition of highly
speculative investments precludes pursuit of gain or profit through unusual risk and
precludes investments primarily directed at gains or profits from conjectural fluctuations
in market prices. The City Treasurer will not directly pursue any investments that are
leveraged or deemed derivative in nature. However, as long as the original investments
can be justified by their ordinary earning power, trading in response to changes in market
value can be used as part of ongoing portfolio management.
18.0 Reporting:
The City Treasurer shall submit a quarterly report to the City Council, City Manager, Chief
Financial Officer and the Investment Advisory Board within 45 days following the end of
the quarter.
53
18
Per California Government Code Section 53646, this report shall include the type of
investment, issuer, date of maturity, par and dollar amount invested on all securities,
investments and moneys held by the local agency, and shall additionally include a
description of any of the local agency's funds, investments, or programs, that are under the
management of contracted parties, including lending programs. With respect to all
securities held by the local agency, and under management of any outside party that is not
also a local agency or the State of California Local Agency Investment Fund, the report
shall also include a current market value as of the date of the report, and shall include the
source of this same valuation. Additionally:
(1) The quarterly report shall state compliance of the portfolio to the statement of
investment policy, or manner in which the portfolio is not in compliance.
(2) The quarterly report shall include a statement denoting the ability of the local agency
to meet its pool's expenditure requirements for the next six months, or provide an
explanation as to why sufficient money shall, or may, not be available.
This quarterly report shall be placed on the City Council Agenda for Council and public
review. In addition, per California Government Code Section 53607, the City Treasurer
shall provide a monthly report of investment transactions to the legislative body.
19.0 Investment Policy Adoption:
By virtue of a resolution of the City Council of the City of Huntington Beach, the Council
shall acknowledge the receipt and filing of this annual statement of investment policy for
the respective year.
54
19
GLOSSARY
AGENCIES: Federal agency securities.
ASKED: The price at which securities are offered. (The price at which a firm will sell a
security to an investor.)
BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or
trust company. The accepting institution guarantees payment of the bill, as well as the
issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for
specific merchandise. An acceptance is a high grade negotiable instrument.
BASIS POINT: One one-hundredth of a percent (i.e. 0.01%)
BENCHMARK: A comparative base for measuring the performance or risk tolerance of
the investment portfolio. A benchmark should represent a close correlation to the level of
risk and the average duration of the portfolio’s investments.
BID: The price offered by a buyer of securities. (When you are selling securities, you ask
for a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He/she does
not take a position.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced
by a certificate. Large-denomination CD’s are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower
pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure
deposits of public monies.
55
20
COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation
(including limited liability companies) to raise working capital. These negotiable
instruments are purchased at a discount to par value or at par value with interest bearing.
Commercial paper is issued by corporations such as General Motors Acceptance
Corporation, IBM, Bank of America, etc.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for the City. It includes combined statements for each individual fund and account
group prepared in conformity with Generally Accepted Accounting Principles. It also
includes supporting schedules necessary to demonstrate compliance with finance-related
legal and contractual provisions, extensive introductory material and a detailed Statistical
section.
COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the
bondholder on the bond’s face value. b) A certificate attached to a bond evidencing interest
due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions;
buying and selling for his/her own account.
DEBENTURE: An unsecured bond backed only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery
of securities with an exchange of money for the securities. Delivery versus receipt is
delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived
from, the movement of one or more underlying index or security, and may include a
leveraging factor, or (2) financial contracts based upon notional amounts whose value is
56
21
derived from an underlying index or security (interest rates, foreign exchange rates,
equities or commodities).
DISCOUNT: The difference between the cost price of a security and its maturity when
quoted at lower than face value. A security selling below original offering price shortly
after sale is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are
issued at a discount and redeemed at maturity for full face value (e.g. US Treasury Bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities offering
independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply
credit to various classes of institutions (e.g. S&L’s, Small business firms, students, farmers,
farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that
insures bank deposits, currently up to $250,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate
is currently pegged by the Federal Reserve though open-market operations.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of
the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The
President of the New York Federal Reserve Bank is a permanent member, while the other
presidents serve on a rotating basis. The committee periodically meets to set Federal
Reserve guidelines regarding purchases and sales of Government Securities in the open
market as a means of influencing the volume of bank credit and money.
57
22
FEDERAL RESERVE SYSTEM: The central bank of the United States created by
congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12
regional banks and approximately 38 percent of the 8,039 commercial banks in the United
States are members of the Federal Reserve System. National banks must be members; state-
chartered banks may join if they meet certain requirements.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash
without a substantial loss of value. In the money market, a security is said to be liquid if
the spread between bid and asked prices is narrow and a reasonable size can be done at
those quotes.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds
from political subdivisions that are placed in the custody of the State Treasurer for
investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could presumably be
purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase-reverse agreements that establish each
party’s rights in the transactions. A master agreement will often specify, among other
things, the right of the buyer-lender to liquidate the underlying securities in the event of
default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes
due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial
paper, bankers’ acceptances, etc.) are issued and traded.
58
23
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION
(“NRSRO”): Firms that review and assess the creditworthiness of an obligor as an entity
or with respect to specific securities or money market instruments and express their opinion
in the form of a letter rating. A credit rating agency may apply to the SEC for registration
as a nationally recognized statistical rating organization (“NRSRO”). The primary rating
agencies are Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch,
Inc.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the
financial institution, bank or savings and loan, bought at par value with the promise to pay
face value plus accrued interest at maturity. They are high-grade negotiable instruments,
paying a higher interest rate than regular certificates of deposit.
OFFER: The price asked by a seller of securities. (When you are buying securities, you
ask for an offer.) See “Asked” and “Bid”.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other
securities in the open market by the New York Federal Reserve Bank as directed by the
FOMC in order to influence the volume of money and credit in the economy. Purchases
inject reserves into the bank system and stimulate growth of money and credit: Sales have
the opposite effect. Open market operations are the Federal Reserve’s most important and
most flexible monetary policy tool.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily
reports of market activity and positions and monthly financial statements to the Federal
Reserve Bank of New York and are subject to its informal oversight. Primary dealers
include Securities and Exchange Commission (SEC)-registered securities broker/dealers,
banks and a few unregulated firms.
59
24
PRUDENT PERSON RULE: An investment standard. In some states, the law requires
that a fiduciary, such as a trustee, may invest money only in a list of securities selected by
the custody state—the so-called “legal list”. In other states, the trustee may invest in a
security if it is one that would be bought by a prudent person of discretion and intelligence
who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim
exemption from the payment of any sales or compensating use or ad valorem taxes under
the laws of this state, which has segregated for the benefit of the commission eligible
collateral having a value of not less than its maximum liability and which has been
approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or
its current market price. This may be the amortized yield to maturity; on a bond, the current
income return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these
securities to an investor with an agreement to repurchase them at a fixed date. The security
“buyer” in effect lends the “seller” money for the period of the agreement, and the terms
of the agreement are structured to compensate him for this.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities
and valuables of all types and descriptions are held in the bank’s vaults for protection.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB,
FNMA, FHLMC, etc.) and Corporations, which have imbedded option (e.g. call features,
step-up coupons, floating rate coupons, derivative-based returns) into their debt structure.
Their market performance is impacted by the fluctuation of interest rates, the volatility of
the imbedded options and shifts in the shape of the yield curve.
60
25
SECONDARY MARKET: A market made for the purchase and sale of outstanding
issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect
investors in securities transactions by administering securities legislation.
SEC RULE 15C3-1: See “Uniform Net Capital Rule”.
SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which
are guaranteed by Federal government to provide financial assistance through direct loans
and loan guarantees to small businesses. Cash flows from these instruments may not be
in equal installments because of prepayments.
SUPRANATIONAL SECURITIES: United States dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed by the International
Bank for Reconstruction and Development (IBRD), International Finance Corporation
(IFC), or Inter-American Development Bank (IDB), with a maximum remaining maturity
of five years or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall
not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S.
Treasury to finance the national debt. Most bills are issued to mature in three months, six
months, or one year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of
more than 10 years.
TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial
maturities of from one year to ten years.
61
26
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement
that member firms as well as nonmember broker/dealers in securities maintain a maximum
ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital
ratio. Indebtedness covers all money owed to a firm, including margin loans and
commitments to purchase securities, one reason new public issues are spread among
members of underwriting syndicates. Liquid capital includes cash and assets easily
converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage.
(a) Income Yield is obtained by dividing the current dollar income by the current market
price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus
any premium above par or plus any discount from par in purchase price, with the
adjustment spread over the period from the date of purchase to the date of maturity of the
bond.
62
CITY OF HUNTINGTON BEACH
INVESTMENT POLICY STATEMENT UPDATES FOR 2023
BY: CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM
63
2023 INVESTMENT POLICY UPDATES:
(Requirements are at purchase)
INVESTMENT TYPE MAXIMUM
MATURITY
CURRENT
MAXIMUM
PROPOSED
MAXIMUM NOTES
California Asset Mgt
Program (CAMP)N/A $20,000,000 $75,000,000
To match maximum amount for other
similar investment types. (No
maximum per California State code.)
Supranationals
(IBRD, IFC, IADB)5 years 10% of total
portfolio
30% of total
portfolio To match California State code.
64
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-041 MEETING DATE:1/17/2023
Air Show Environmental Review
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™65
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-1125 MEETING DATE:1/17/2023
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 December 6, 2022 and the
City Council/Public Financing Authority regular meeting and Housing Authority, Parking Authority and
Successor Agency special meeting minutes of December 20, 2022, require review and approval.
Financial Impact: None.
Recommended Action:
A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes of
December 6, 2022; and,
B) Approve and adopt the City Council/Public Financing Authority regular meeting and the Housing
Authority, Parking Authority and Successor Agency special meeting minutes of December 20, 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. December 6, 2022 CC/PFA regular meeting minutes
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™66
File #:22-1125 MEETING DATE:1/17/2023
2. December 20, 2022 CC/PFA regular meeting minutes and HA/PA/SA special meeting minutes
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™67
Minutes
City Council/Public Financing Authority
City of Huntington Beach
Tuesday, December 6, 2022
6:00 PM — Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
Or Virtual via Zoom Webinar8
A video recording of the 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/
6:00 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 6:04 PM
ROLL CALL
Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Carr
INVOCATION
In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or
belief. Neither the City nor he City Council endorses any particular religious belief or form of invocation.
Stephen J. Einstein, Founding Rabbi of Congregation B’nai Tzedek in Fountain
Valley, CA and member of the Greater Huntington Beach Interfaith Council
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, Assistant City Clerk Patty Esparza announced
supplemental communications received by her office following distribution of the Council Agenda packet:
Awards and Presentations
4. 22-984 2 E-mail communications
City Clerk's Report
5. 22-975 PowerPoint presentation entitled 2022 Election Regarding the Adoption of Resolution No.
2022-69 Reciting the Facts of the General Municipal Election of November 8, 2022, and
Declaring Results, submitted by Assistant City Clerk Patty Esparza.
Councilmember Items **ITEM WITHDRAWN FOR COUNCIL CONSIDERATION**
12. 22-1049 1 E-mail communication
68
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 2 of 9
PUBLIC COMMENTS REGARDING BUSINESS ITEM(S)
(2 Minute Time Limit) — 21 In-Person, 0 Call-in Speakers
The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in
the archived video located at http://www.surfcity-hb.org/government/agendas.
Galen Pickett was called to speak and offered his own prayer for Huntington Beach and its leaders.
(00:10:16)
Carol Rohr, Huntington Beach Mobile Homeowners Resident Coalition President, was called to speak
and noted that Coalition members agree with the newly elected Councilmembers in their opposition to
cramming high density development into existing family neighborhoods and established residential
communities. Ms. Rohr stated that manufactured housing represents the most affordable option for
ownership in Huntington Beach. She thanked outgoing Councilmembers who served as liaisons for the
Mobile Home Advisory Board, and shared her expectation that the two new Councilmember liaisons will
always keep in mind the best interests of the mobile home residents. (00:12:18)
Sharon Crabill, a resident of Huntington Shore Mobile Home Park for over 2 years, was called to speak
and welcomed the newly elected Councilmembers. Ms. Crabill asked that the newly elected
Councilmembers support the City's mobile home resident efforts to amend City Charter Section 803 to
allow for rent stabilization for all mobile home residents. (00:14:15)
Ada Hand, a resident of Del Mar Mobile Home Park, was called to speak and noted that AB 1482
protects all California renters from rent increases of more than ten percent, except mobile home park
residents. Ms. Hand asked that the newly elected Councilmembers place on the November 2024 ballot
an exemption to City Charter Section 803 to allow a rent stabilization ordinance for mobile home park
residents. (00:16:05)
Cari Swan was called to speak and shared her perspective of high-density housing development in
Huntington Beach since 2012, specifically related to the campaign promises of Councilmember Peterson,
and thanked him for always standing on principle, for what was right, honoring, and respecting, the
community. (00:18:18)
Stephen Quinn was called to speak and expressed his appreciation for the newly elected Council
majority, and reelection of City Attorney Michael Gates. (00:20:29)
Tim Geddes, a 39-year resident of southeast Huntington Beach and Mobile Home Advisory Board Chair,
was called to speak and thanked Councilmember Carr, Mayor Pro Tem Posey, Mayor Delgleize and
Councilmember Kalmick for serving as Mobile Home Advisory Council Liaisons the last several years.
He also shared his hope that the newly elected Council Liaisons will take a hands-on approach in
representing mobile home residents with skill and dedication. (00:22:19)
Patricia Pappas, a resident for 43 years, was called to speak and shared some of her efforts the last few
years to help return Huntington Beach to the safe city it used to be, and encouraged the new City Council
to communicate and dialogue with the residents. (00:24:22)
Ann Palmer, a 38-year resident of Huntington Beach, was called to speak and thanked Councilmember
Peterson and City Attorney Michael Gates for their service and always being available to answer her
questions. (00:26:36)
69
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 3 of 9
Avery Counts, a resident of Huntington Beach, was called to speak and congratulated the newly elected
Councilmembers, and thanked the outgoing Councilmembers for their dedication and service. Mr.
Counts expressed his hope for unity for the City regardless of political leanings, by working together, not
against one another, and urged City Council to support City traditions. (00:28:08)
Unnamed Guest, a 25-year resident of Huntington Beach, was called to speak and congratulated the
newly elected Councilmembers and re-elected City Attorney Michael Gates. He also thanked the
outgoing Councilmembers for their service, and stated his support for keeping Huntington Beach as Surf
City. (00:29:43)
Unnamed Guest, a 46-year resident of Huntington Beach, was called to speak and thanked
Councilmember Peterson for his support and encouragement to get her involved in City politics. She
congratulated the newly elected Councilmembers, and shared her expectation of an amazing future for
Huntington Beach. (00:32:41)
Pat Goodman was called to speak and thanked the outgoing Councilmembers for their service, for
enriching the lives of Huntington Beach residents, and wished them well in their future endeavors.
(00:33:52)
Unnamed Guest was called to speak and thanked the outgoing Councilmembers for their service, and
congratulated the newly elected Councilmembers. She challenged the new Council to follow tradition, or
at least follow Resolution 6320, City Charter Sections 305 and 306, and elect Councilmember Kalmick as
Mayor, or Mayor Pro Tem. (00:34:31)
Chris Byrns, a 50-year resident, was called to speak and thanked Councilmember Peterson for serving
Huntington Beach so selflessly, and congratulated the newly elected Councilmembers. (00:35:30)
Cheri Atkinson, a long-term resident, was called to speak and thanked the outgoing Councilmembers for
their service. She also welcomed the newly elected Councilmembers. She noted the many programs
and efforts of the last two years to address the issue of homelessness and asked that everyone treat
each other with respect in spite of differences of opinion. (00:37:25)
Ken Inouye, a 50-year resident of Huntington Beach and unsuccessful Council Candidate in November
2022, was called to speak and thanked the outgoing Councilmembers for their service. He also
congratulated the newly elected Councilmembers. Mr. Inouye requested that the new City Council
respect policy and procedure and elect Councilmember Kalmick as Mayor. (00:39:32)
Dave Sullivan, a 55-year resident of Huntington Beach and former Mayor, was called to speak and
shared his admiration for the service of Councilmember Peterson as a voice of reason, and also thanked
him for his service as a Marine. (00:40:28)
Calvin Free, a long-time friend of Councilmember Peterson, was called to speak and thanked
Councilmember Peterson for his sincerity and honesty in serving Huntington Beach. He also
congratulated City Attorney Michael Gates for his re-election. (00:42:43)
Steven Barnes, a 26-year resident of Huntington Beach, was called to speak and stated his support for
reciting the Pledge of Allegiance in every City Council meeting. He shared his opinion that currently too
many politicians expect their electorate to support their personal and political ambitions, without regard
for the fundamental liberties or social responsibilities of "we the people". Mr. Barnes stated that each
person has a moral and civic responsibility to participate in our republic, and encouraged the people of
70
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 4 of 9
Huntington Beach who voted to stay involved in the process to preserve God-given virtues for "we the
people". (00:43:44)
Roger Noor was called to speak and asked that the new City Council pay attention to the City budget,
and work to keep expenses down so that resident water costs can be reduced. (00:46:05)
COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Moser reported attending the following meetings and events: Cal Cities Board of
Directors where she was appointed to the Sustainability Board; Homeless Task Force; State of the City
Presentation by Mayor Delgleize; Junior Citizens Academy; Ribbon Cutting for Surf City Winter
Wonderland; Communications Committee; Giving Tuesday; and was appointed as a member of OC
Housing Finance Trust.
Councilmember Kalmick reported attending the following meetings: Intergovernmental Relations
Committee; Communications Committee; City Selection Committee; and a tour of Central Library.
CITY MANAGER’S REPORT — City Manager Al Zelinka thanked the outgoing Councilmembers for
their service and hard work, and stated he is looking forward to working in collaboration with all
of the City’s elected officials.
AWARDS AND PRESENTATIONS
1. 22-981 Mayor Delgleize presented the Mayor’s HB Excellence Award to Public Works
Operations Manager, Denny Bacon
Mayor Delgleize noted that in December the Mayor actually chooses the awardee, rather than co-
workers, based on humility, social awareness, passion, exceptionality, integrity, and being team oriented.
She introduced Public Works Operations Manager Denny Bacon as someone who truly exhibits the
City's core values.
Public Works Director Sean Crumby noted that Denny was hired 11 years ago as Maintenance Manager
of all City parks, the street maintenance crew and beach maintenance, and several years ago the
maintenance of City buildings and the City fleet were added to his responsibilities. Denny has developed
an amazing team to serve the residents of Huntington Beach.
Denny Bacon thanked Mayor Delgleize for her support through the years, and Public Works Director
Crumby for his leadership. Mr. Bacon noted this award is a great reflection of all the men and women in
Public Works.
2. 22-982 City 2022 Retrospect by Mayor Delgleize
Mayor Delgleize expressed her appreciation for the opportunity to serve as Mayor two times during her
eight years of service. She reviewed highlights of special accomplishments during her time of service,
expressed gratitude for her fellow Councilmembers, and welcomed the newly elected Councilmembers.
3. 22-983 Presentations by Mayor Delgleize to Colleagues
71
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 5 of 9
Mayor Delgleize presented each of her fellow Councilmembers, Assistant City Clerk Patty Esparza, City
Attorney Michael Gates, City Manager Al Zelinka, Assistant City Manager Travis Hopkins, and City
Treasurer Alisha Backstrom with a framed map of Huntington Beach, a bouquet of flowers to City Council
Assistant Administrator Cathy Fikes, and thanked each for their support during her final term as Mayor.
4. 22-984 Public Comments, including Presentations by Community Members to Outgoing
Councilmembers and Newly Elected Officials
Salma Elshakre, representing Assemblywoman Cottie Petrie-Norris, was called to speak and stated
gratitude to all outgoing Councilmembers for their service and presented them with a Resolution of
Appreciation. (01:06:58)
Lyn Semeta was called to speak and thanked Councilmember Peterson for his eight years of selfless
service while listening to the voice of the people. She also congratulated the newly elected
Councilmembers and City Attorney Michael Gates for their successful campaigns. (01:09:35)
Unnamed Guest was called to speak and expressed her welcome to the newly elected Councilmembers,
and asked that they continue to provide adequate financing for the City’s many resources, and follow the
1990 resolution for selecting City Council positions. (01:11:55)
Russell Neal, a resident of Huntington Beach, was called to speak and referencing comments of a public
speaker at the November 29, 2022, City Council meeting, stated that people should be forces of
lawfulness, not forces of lawlessness as suggested by that previous speaker. Mr. Neal stated many
residents will stand by the new City Council as they address the monstrous tyranny emanating from
Sacramento and uphold local control over local matters. (01:14:12)
Steve and Sherry Engel, Central Park Volunteers, were called to speak and read their poem of thanks
describing the many ways Mayor Delgleize has helped to improve Huntington Beach parks during her
service as a Councilmember. (01:16:03)
COMMENTS BY CURRENT AND OUTGOING COUNCILMEMBERS
Councilmember Peterson thanked his wife Brandi, and the residents of Huntington Beach for supporting
him. He congratulated the newly elected Councilmembers and re-elected City Attorney Michael Gates.
Mayor Pro Tem Posey thanked the voters who elected and re-elected him, his wife Jeannie, as well as
many individuals for their support through the years. He also acknowledged the support of his fellow
Councilmembers, and shared comments of advice for the newly elected Councilmembers.
Councilmember Carr congratulated the newly elected Councilmembers and thanked the residents for the
opportunity of a lifetime to serve on City Council. She also reviewed various City Council
accomplishments during her service. She thanked her family for their understanding of the huge
commitment required to serve on City Council, and expressed her appreciation to all City staff, including
the Executive Leadership Team.
Councilmember Kalmick thanked his fellow Councilmembers for their service to the community, and
highlighted action items he is proud to have supported during his term of service. He also commended
the newly elected Councilmembers for their excellent campaign, and stated he looks forward to the
debates on policy, ideas and direction moving forward.
72
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 6 of 9
Councilmember Bolton expressed her appreciation for being able to serve with the outgoing
Councilmembers. She shared her opinion that good public policy makers do not make decisions based
on their personal interests, and they don't sell out to special interests, but rather determine what is in the
best interests of most people. She welcomed the newly elected Councilmembers and stated she looks
forward to working productively with them.
Councilmember Moser noted that the residents expect all Councilmembers to be fair, hardworking and
dedicated to the common good, and reviewed some of Council's accomplishments during her time of
service. She thanked the outgoing Councilmembers for their comradery and welcomed the opportunity
to serve with the newly elected Councilmembers. She read For One Who Holds Power by John
O'Donohue as her blessing for the new City Council.
CITY CLERK’S REPORT
5. 22-975 Adopted Resolution No. 2022-69 Reciting the Facts of the General Municipal
Election of November 8, 2022, and Declaring Results
Assistant City Clerk Patty Esparza presented a PowerPoint communication titled 2022 Election with
slides entitled November 8, 2022 Voter Turn Out; November 8, 2022 Results — City Council; November
8, 2022 Results — City Attorney; November 8, 2022 Results — Ballot Measures; and Recommended
Action.
A motion was made by Posey, second Peterson to adopt Resolution No. 2022-69, "A Resolution of the
City Council of the City of Huntington Beach, California, Reciting the Facts of the General Municipal
Election held on November 8, 2022, Declaring the Results and Such Other Matters as Provided by Law."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick
NOES: None
ADMINISTERED OATHS OF OFFICE
6. 22-985 Oath of Office to City Councilmembers
Senator Janet Nguyen administered the Oath of Office to four (4) newly elected
officers:
Councilmember Pat Burns
Councilmember Tony Strickland
Councilmember Gracey Van Der Mark
Councilmember Casey McKeon
ROLL CALL
Present: Van Der Mark, Bolton, Strickland, Burns, McKeon, Moser, Kalmick
Absent: None
Assistant City Clerk Esparza announced a communication from Councilmember Kalmick was distributed
to each councilmember and would available to the public the next business day.
73
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 7 of 9
7. 22-986 Oath of Office to City Attorney
Senator Janet Nguyen administered the Oath of Office to re-elected City Attorney
Michael Gates
CONDUCTED ELECTION OF MAYOR / MAYOR PRO TEMPORE
City Clerk’s Office
8. 22-1029 Procedure for the election of Mayor and Mayor Pro Tem
For the record, Assistant City Clerk Patty Esparza read a brief report on the procedure for election of the
Mayor and Mayor Pro Tem positions.
Councilmember Kalmick stated his disappointment to see politics played over tradition, and provided
history for Resolution No. 6320. He asked that if this Council disagrees with established policy, it should
place that policy on a future agenda to be voted on.
A substitute motion was made by Bolton, second Moser to follow procedure as established in City
Council Resolution No. 6320 and Resolution No. 2019-09 for the election of the next Mayor and Mayor
Pro Tem; - OR- Set aside City Council Resolution No. 6320 and Resolution No. 2019-09 and establish
different procedures.
The motion failed by the following vote:
AYES: Bolton, Moser, and Kalmick
NOES: Burns, Strickland, McKeon, and Van Der Mark
A motion was made by Burns, second Van Der Mark to Follow procedure as established in City Council
Resolution No. 6320 and Resolution No. 2019-09 for the election of the next Mayor and Mayor Pro Tem;
- OR- set aside City Council Resolution No. 6320 and Resolution No. 2019-09 and establish different
procedures.
The motion carried by the following vote:
AYES: Burns, Strickland, McKeon, and Van Der Mark
NOES: Bolton, Moser, and Kalmick
A motion was made by Casey McKeon, second Patrick Burns to set aside the City Council Manual and
authorize the Mayor to assign Council Chamber dais seating, Councilmember office and parking spaces
at City Hall.
The motion carried by the following vote:
AYES: Burns, Strickland, McKeon, Van Der Mark
NOES: Bolton, Moser, and Kalmick
9. 22-987 City Clerk called for motion to elect new Mayor
A motion was made by Burns, second Van Der Mark to elect Councilmember Strickland as Mayor.
The motion carried by the following vote:
74
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 8 of 9
AYES: Burns, Strickland, McKeon, and Van Der Mark
NOES: Bolton, Moser, and Kalmick
Senator Janet Nguyen administered the Oath of Office to new Mayor Strickland
Presentation of gavel by outgoing Mayor Delgleize to new Mayor Strickland
Presentation of gift by new Mayor Strickland to outgoing Mayor Delgleize
Mayor Strickland presided
10. 22-988 Mayor Strickland called for motion to elect new Mayor Pro Tempore
A motion was made by McKeon, second Strickland to elect Councilmember Van Der Mark as Mayor Pro
Tempore.
The motion carried by the following vote:
AYES: Burns, Strickland, McKeon, and Van Der Mark
NOES: Bolton, Moser, and Kalmick
Senator Janet Nguyen administered the Oath of Office to new Mayor Pro Tempore,
Van Der Mark
Mayor Strickland announced the City Council Special Meeting scheduled for Thursday, December
8, 2022, at 6:00 PM is cancelled due to lack of a quorum.
INVOCATION
11. 22-1028 Pastor Joe Pedick of Calvary Chapel of the Harbour
MUSICAL TRIBUTE
COUNCILMEMBER ITEMS
12. **12. 22-1049 ** ITEM #12 WITHDRAWN FOR COUNCIL CONSIDERATION**
Request to Cancel the December 8, 2022 Special Meeting and provide the City
Council with briefings on the Housing Element Update
COMMENTS BY NEWLY ELECTED MAYOR, MAYOR PRO TEM AND COUNCILMEMBERS AND
RE-ELECTED CITY ATTORNEY
Re-elected City Attorney Michael Gates thanked his wife Kelly and children for their support throughout
the re-election process; the residents for their interest, passion and dedication; and Chief Assistant City
Attorney Mike Vigliotta and City Attorney office staff, Huntington Beach Police Chief Parra and the Police
Department staff for ongoing support. He reported on several legal cases, and stated his hope that
moving forward everyone would work as a team and not try to politicize the work that needs to be done.
He congratulated the newly elected Councilmembers for their phenomenal campaigns.
Councilmember McKeon thanked his wife Josephine and family for their support, the community for their
votes and the common belief that Huntington Beach can be the jewel of Orange County.
75
Council/PFA Regular Meeting Minutes
December 6, 2022
Page 9 of 9
Mayor Pro Tem Van Der Mark thanked her husband Peter and children for standing by her side through
this process; the residents for fighting alongside of her for "we the people"; her mother's support as an
advocate for the vulnerable; and her deceased father who immigrated to the U. S. to pursue the
American dream. She stated she is fully prepared to dedicate as much time and effort as it takes to
make Huntington Beach as safe as possible for all families and future generations.
Mayor Strickland applauded Mayor Pro Tem Van Der Mark as the first Latina elected official for Huntington
Beach. Mayor Strickland thanked his wife Carla Dispalatro and her whole family for their support. He
thanked his deceased father for his example of love of country and service. Mayor Strickland encouraged
residents to speak up because he believes listening to the residents makes for better legislators. He
referenced plans for the future and stated he will work hard to make the residents proud of his leadership.
Councilmember Burns thanked his family for their support during the campaign process, Former
Councilmember Peterson for his encouragement to get involved in this way, and the many residents who
worked hard on his behalf during the campaign process.
ADJOURNMENT — 9:08 PM, motion by Burns, second by Van Der Mark, to adjourn to the next regularly
scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, December
20, 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 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
76
Minutes
City Council/Public Financing Authority Regular Meeting
and Special Meeting of the Housing Authority, Parking Authority,
and Successor Agency to the former Redevelopment Agency
City of Huntington Beach
Tuesday, December 20, 2022
4:30 PM - Council Chambers
6:00 PM - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
or Virtual via Zoom Webinar
A video recording of the 4:30 PM and 6:00 PM portions of this meeting
is on file in the Office of the City Clerk, and archived at
www.surfcity-hb.org/government/agendas/
4:30 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 4:30PM
ROLL CALL
Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
Absent: None
City Clerk Robin Estanislau was granted permission to be absent pursuant to City Charter Section 310 (a).
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION
ITEMS (Received After Agenda Distribution) — None
PUBLIC COMMENTS (3 Minute Time Limit) — 1 In-Person Speaker
The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in
the archived video located at http://www.surfcity-hb.org/government/agendas.
Galen Pickett was called to speak and noted his interest in Councilmember Item #29 regarding a report
on Homelessness, Anti-Camping and Anti-Loitering Laws, and specifically seeing former Police Chief
Handy's 90-day plan on how HBPD will enforce the City and State's anti-camping and anti-loitering laws.
(00:01:08)
CLOSED SESSION ANNOUNCEMENT(S)
1. 22-1101 Mayor Strickland announced: Pursuant to Government Code § 54957.6, the City
Council takes this opportunity to publicly introduce and identify designated labor
negotiators, Al Zelinka, City Manager and Peter Brown Chief Negotiator; also in
attendance: Brittany Mello, Administrative Services Director, Travis Hopkins,
Assistant City Manager; Eric Parra, Chief of Police; and Dahle Bulosan, Chief
Financial Officer, who will be participating in today’s Closed Session discussions
77
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 2 of 26
regarding labor negotiations with: Huntington Beach Police Officers’ Association
(HBPOA).
A motion was made by Kalmick, second Van Der Mark, to recess to Closed Session.
RECESSED TO CLOSED SESSION — 4:35PM
CLOSED SESSION
2. 22-1097 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Chodzko (Tara) v. City of
Huntington Beach; OCSC Case No.: 30-2021-01237196.
3. 22-1098 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Babaie (Masoud) and Hervin-
Babaie (Negin) v. City of Huntington Beach; Case No. 30-2020-01159653.
4. 22-1099 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Whitaker (Brittany) v. City of
Huntington Beach, et al.; OCSC Case No.: 30-2021-01235807.
5. 22-1100 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency
designated representatives: Al Zelinka, City Manager, Travis Hopkins, Assistant
City Manager, and Peter Brown, Chief Negotiator; also in attendance: Brittany
Mello, Administrative Services Director; Travis Hopkins, Assistant City Manager;
Eric Parra, Chief of Police; and Dahle Bulosan, Chief Financial Officer. Employee
Organization: Police Officers' Association (POA).
6. 22-1102 CONFERENCE WITH LEGAL COUNSEL — LITIGATION (Gov. Code section
54956.9(d)(4).): Number of Cases, one (1) – Oil Spill.
7. 22-1103 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Pacific Airshow, LLC v. City of
Huntington Beach and Kim Carr; OCSC Case No. 30-2022-01287749.
6:00 PM - COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING, AND CALLED TO
ORDER SPECIAL MEETING OF THE HOUSING AUTHORITY, PARKING AUTHORITY AND
SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF HUNTINGTON BEACH
— 6:02PM
ROLL CALL
Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
Absent: None
City Clerk Robin Estanislau was granted permission to be absent pursuant to City Charter Section 310 (a).
78
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 3 of 26
PLEDGE OF ALLEGIANCE — Led by Councilmember McKeon
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. 22-1115 Charles Niederman of Temple Beth David in Westminster and member of the
Greater Huntington Beach Interfaith Council
Due to technical issues at the December 6, 2022 meeting, the musical tribute Proud to be an American
by Lee Greenwood was replayed.
CLOSED SESSION REPORT BY CITY ATTORNEY — None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, Assistant City Clerk Patty Esparza announced
supplemental communications received by her office following distribution of the Council Agenda packet:
Council Committee Appointment Announcements
#9 (22-1041) Three (3) email communications received regarding Mayor Strickland’s 2023 Council
Liaison List.
Consent Calendar
#11 (22-1113) Two (2) email communications received regarding modifying the City Attorney Salary
Schedule.
Administrative Items
#25 (22-1090) Inter-Departmental Communication submitted by Brittany Mello, Administrative Services
Director, providing clarification on the fiscal impact of adding one new director-level
position in the City.
Revised PowerPoint Presentation titled Administrative Services Department
Reorganization submitted by Brittany Mello, Administrative Services Director.
Councilmember Items
#26 (22-1092) Letter from the American Civil Liberties Union Foundation / First Amendment Coalition
regarding the anonymous reporting of code enforcement complaints.
Letter received from Orange County Employees Association (OCEA) and Huntington
Beach Municipal Employees Organization regarding the anonymous reporting of code
enforcement complaints.
Eight (8) email communications received regarding the anonymous reporting of code
enforcement complaints.
#27 (22-1093) Four (4) email communications received regarding proposed raising of campaign
contribution limits.
79
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 4 of 26
#28 (22-1105) Two (2) email communications received regarding the request to perform a CEQA review
for the Great Pacific Air Show.
#29 (22-1094) Three (3) email communications received regarding report on Homelessness, Anti-
Camping and Anti-Loitering Laws.
#30 (22-1108) Draft Greenhouse Gas Reduction Program (GGRP) submitted by Councilmember
Kalmick.
Thirteen (13) email communications received regarding withdrawal from the OCPA.
#31 (22-1110) Email communication received regarding the request to pause the Main Street
Redevelopment Project.
#32 (22-1095) Email communication received regarding request for HBPD Crime Statistics and
Enhanced Public Safety Enforcement Activities.
#33 (22-1096) State Auditor RHNA Fact Sheet submitted by Councilmember Kalmick.
State Auditor RHNA March 2022 Report submitted by Councilmember Kalmick.
Letter received from YIMBY Law regarding opposing RHNA Mandate and adopting an
Ordinance to Ban Builder’s Remedy Developments.
Three (3) email communications received regarding opposing RHNA Mandate and
adopting an Ordinance to Ban Builder’s Remedy Developments.
#34 (22-1109) Memo, including legal documents, submitted by Councilmember Kalmick regarding his
relationship to Craig Steele.
Two (2) email communications received regarding the request for information and actions
related to the RWG report.
PUBLIC COMMENTS (3 Minute Time Limit) — 36 In-Person and 5 Call-In Speakers
The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in
the archived video located at http://www.surfcity-hb.org/government/agendas.
Connie Boardman, Former Mayor and Councilmember, was called to speak and shared her concerns
and opposition to Councilmember Items #27 regarding Mayor Strickland's request to amend the
Huntington Beach Municipal Code to raise Campaign Contribution Limits, and #28 regarding Mayor
Strickland's request to perform a CEQA review for the Great Pacific Air Show. (00:31:32)
Art Estrada, a member of the Huntington Beach Mobile Home Residents Coalition, was called to speak
and shared his concerns regarding Mayor Strickland's City Council Liaison appointments to the Mobile
Home Advisory Board. Mr. Estrada asked that new liaisons be appointed who are not conflicted and
could provide fairness. (00:34:45)
80
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 5 of 26
Linda Rose, a 45-year homeowner, was called to speak and stated her interest in learning more about
the newest members of the Homeless Task Force. She commended the Be Well OC staff, as well as the
Police Department staff who support the Point in Time count. (00:36:58)
Nabila Yousef was called to speak and congratulated the newly elected Councilmembers. She stated
her support for Councilmember Items #26 regarding Mayor Strickland's Proposed Ordinance to Establish
a Code Enforcement Complaint Process regarding Alleged Business Violations and Prohibits the
Submission of Anonymous Complaints. She stated her opposition to Councilmember Items #27
regarding Mayor Strickland's request to amend the Huntington Beach Municipal Code to raise Campaign
Contribution Limits. (00:38:33)
Mary Jo Baretich, Cabrillo Beachfront Village Mobile Home Park HOA President, member of the
Huntington Beach Mobile Home Residents Coalition, and member of the Mobile Home Advisory Board,
was called to speak and stated her concerns about Councilmember Items #27 regarding Mayor
Strickland's request to amend the Huntington Beach Municipal Code to raise Campaign Contribution
Limits. (00:41:46)
Amory Hanson was called to speak and stated his support for Councilmember Items #33 (1.) regarding
Councilmember McKeon's request to challenge the State's RHNA mandate for Huntington Beach,
including its validity and any laws in support of such a mandate over the City as a Charter City, by taking
whatever legal action is required. He further stated his support for creating a Section 8 Housing Voucher
Program to create affordable housing using the existing homes and apartments in Huntington Beach,
without having to build new housing units. (00:44:02)
Danielle Parks, speaking on behalf of Carol Rohr, President of the Huntington Beach Mobile Home
Residents Coalition, was called to speak and noted that the two newly appointed Mobile Home Advisory
Board Council Liaisons raise major conflict of interest issues. She noted the Executive Director and
Political Action Committee Principal of a major industry group already sit on the Huntington Beach Mobile
Home Advisory Board. Ms. Parks asked that new liaisons be appointed who could provide fair and
unbiased representation for the mobile home community and the local government. (00:45:42)
Russell Neal, a resident of Huntington Beach, was called to speak and stated his support for
Councilmember Items #27 regarding Mayor Strickland's request to amend the Huntington Beach
Municipal Code to raise Campaign Contribution Limits. He also stated his support for any efforts to
recover the right to local control over local matters. (00:47:58)
KC Fockler, Surfrider Foundation Member, was called to speak and welcomed the newly elected
Councilmembers, and invited everyone to participate in the January 1, 2023, 23rd Annual Surf City
Splash. (00:50:09)
Laura Sire, a 60-year resident of Huntington Beach, and member of Homeless United Huntington Beach,
was called to speak and stated her opposition to Item #9 to approve Mayor Strickland's 2023 Council
Liaison List with a majority of appointments going to newly elected Councilmembers. She asked that at
least one experienced Councilmember be appointed as Liaison to the Homeless Task Force. (00:52:39)
Joclyn Rabbitt-Sire, a 23-year resident of Huntington Beach, was called to speak and stated her
opposition to Councilmember Items #30 submitted by Mayor Pro Tem Van Der Mark and Councilmember
McKeon requesting to switch the City's OCPA Energy Rate to Basic Choice and recommendation to
withdraw as a Founding Member of OCPA. (00:56:50)
81
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 6 of 26
Christopher Waring, whose family has owned property in Surf City Beach Cottages Home Park for 57
years, was called to speak and shared his experience with increasing space rental costs as a senior
citizen living on a fixed income. (01:00:08)
Wendy Rincon, a life-long resident of Huntington Beach, was called to speak and shared her concerns
regarding Item #9 to approve Mayor Strickland's 2023 Council Liaison List and her support for the
comments of Ms. Sire that the appointments are not evenly balanced between experienced and newly
elected Councilmembers. Ms. Rincon also stated her opposition to Councilmember Items #26 submitted
by Mayor Strickland to prohibit the submission of Anonymous Complaints, and #27 submitted by Mayor
Strickland to amend the Huntington Beach Municipal Code to raise Campaign Contribution Limits.
(01:02:21)
Bethany Webb, a 40-year resident of Huntington Beach, was called to speak and shared her opposition
to Item #9 to approve Mayor Strickland's 2023 Council Liaison List which would remove experienced
Councilmembers by inexperienced, newly elected Councilmembers. She also stated her opposition to
Consent Calendar Item #11 to adopt Resolution No. 2022-82, modifying non-associated salary schedule
for City Attorney to adjust for recent inflation. (01:05:17)
Cari Swan was called to speak and stated her support for Councilmember Items #26 submitted by Mayor
Strickland proposing an Ordinance to Establish a Code Enforcement Complaint Process Regarding
Alleged Business Violations and Prohibit the Submission of Anonymous Complaints; #27 submitted by
Mayor Strickland requesting to amend the Huntington Beach Municipal Code to raise Campaign
Contribution Limits; #28 submitted by Mayor Strickland requesting a CEQA review of the Great Pacific
Air Show; #29 submitted by Mayor Pro Tem Van Der Mark for a report on Homelessness, Anti-Camping
and Anti-Loitering Laws; #30 submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon
to switch the City's OCPA Energy Rate to Basic Choice and recommendation to Withdraw as a Founding
Member of OCPA; #31 submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon to
Pause the Main Street Redevelopment Project and Solicit Additional Community Feedback Prior to
Reconsidering the Project; #32 submitted by Councilmember Burns requesting HBPD Crime Statistics
and Enhanced Public Safety Enforcement Activities report; #33 submitted by Councilmember McKeon
opposing RHNA Mandate and return with an Ordinance to Ban Builder's Remedy Development; and,
#34 submitted by Councilmember McKeon requesting Information and Actions Related to the RWG
Report. Ms. Swan also shared her observations and opinions regarding the City Council's Officer
Election Process during the December 6, 2022, City Council meeting. (01:09:16)
Pat Goodman, a long-time Huntington Beach homeowner and Self Help Interfaith Program volunteer,
was called to speak and stated her support for Councilmember Items #29 submitted by Mayor Pro Tem
Van Der Mark requesting a report on Homelessness, Anti-Camping and Anti-Loitering Laws. Ms.
Goodman provided a historical review of the City's efforts since 2014 to address the issue of
homelessness including development of the Homeless Task Force. (01:12:30)
Kathy Carrick, a 47-year resident, was called to speak and shared her support for efforts to move away
from high density development, more homelessness and more crime. She commended newly elected
Councilmembers for jumping in with both feet to move boldly forward in reaching toward the goals they
set to help return HB to the city so many residents love. (01:15:50)
Lisa Swanson, a 13-year homeowner in southeast Huntington Beach, was called to speak and stated her
opposition to Councilmember Items #30 submitted by Mayor Pro Tem Van Der Mark and Councilmember
McKeon requesting to switch the City's OCPA Energy Rate to Basic Choice, and recommendation to
Withdraw as a Founding Member of OCPA. (01:18:39)
82
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 7 of 26
Unnamed Guest, a homeowner in Huntington Beach since 1985, was called to speak and stated her
opposition to Councilmember Items #26 submitted by Mayor Strickland proposing an Ordinance to
Establish a Code Enforcement Complaint Process Regarding Alleged Business Violations and Prohibit
the Submission of Anonymous Complaints. She read portions of a letter from the ACLU of Southern
California and First Amendment Coalition addressing the serious constitutional concerns regarding an
individual's right to petition and for anonymous speech. (01:19:51)
Natalie Rokos was called to speak and stated her opposition to Councilmember Items #26 submitted by
Mayor Strickland proposing an Ordinance to Establish a Code Enforcement Complaint Process
Regarding Alleged Business Violations and Prohibit the Submission of Anonymous Complaints by
reading additional portions of the letter from the ACLU of Southern California and First Amendment
Coalition. (01:22:16)
Dave Sullivan, a resident of Huntington Beach for over 55 years, Former Councilmember and Mayor,
was called to speak and stated his support for always allowing 3 minutes for public speakers to make
their comments. He congratulated Mayor Pro Tem Van Der Mark on becoming the first female Hispanic
Huntington Beach Councilmember. (01:25:22)
Bill Hennerty was called to speak and congratulated the newly elected Councilmembers and City
Attorney Michael Gates on his reelection. He stated his support for Councilmember Items #26 submitted
by Mayor Strickland proposing an Ordinance to Establish a Code Enforcement Complaint Process
Regarding Alleged Business Violations and prohibiting the Submission of Anonymous Complaints, and
described his personal family experience of being the recipient of anonymous complaints. He stated his
opposition to Councilmember Items #27 submitted by Mayor Strickland requesting to amend the
Huntington Beach Municipal Code to raise Campaign Contribution Limits; and his support for
Councilmember Items #30 submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon to
Recommend Withdrawing as a Founding Member of the OCPA. (01:29:00)
Courtney Gillett, a life-long resident of Huntington Beach and Special Olympics Liaison for the
Huntington Beach Union High School District and Ocean View High School, was called to speak and
shared details on the Unified Sports program sponsored by Special Olympics. Ms. Gillett invited the
community and Councilmembers to participate in the Special Olympics Golf Tournament on February 27,
2023, at the Huntington Club. They are also looking for hole and raffle item sponsors. (01:31:53)
Mark Dixon, a resident of Huntington for over 50 years, was called to speak and stated his opposition to
Consent Calendar Item #11 regarding Resolution No. 2022-82 modifying the Non-Associated Salary
Schedule for City Attorney to Adjust for Recent Inflation, Make Compensation More Competitive. Mr.
Dixon also stated his opposition to Councilmember Items #26 submitted by Mayor Strickland proposing
an Ordinance to Establish a Code Enforcement Complaint Process regarding Alleged Business
Violations and Prohibiting the Submission of Anonymous Complaints. (01:34:17)
Roger Noor was called to speak and congratulated the newly elected Councilmembers, and asked that
they not approve any budgets until they have been closely analyzed, specifically the $99M Police
Department budget and increasing utility bills for the residents. (01:36:20)
Paul Arms was called to speak and congratulated the newly elected Councilmembers. He stated his
support for renewable energy and opposition to Councilmember Items #30 submitted by Mayor Pro Tem
Van Der Mark and Councilmember McKeon requesting to switch the City's (Organization) OCPA Energy
Rate to Basic Choice and recommendation to Withdraw as a Founding Member of the OCPA. (01:39:39)
83
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 8 of 26
Caller Lisa Martice was invited to speak and thanked Councilmembers Kalmick, Moser and Bolton, as
well as Former Councilmember Carr and Former Mayor Delgleize for their positive leadership. Ms.
Martice stated her opposition to Agenda Item #9 to approve Mayor Strickland's 2023 Council Liaison List
which in her opinion appears to have replaced too many experienced Councilmembers with newly
elected Councilmembers; opposition to Councilmember Items #26 submitted by Mayor Strickland
proposing an Ordinance to Establish a Code Enforcement Complaint Process regarding Alleged
Business Violations and Prohibits the Submission of Anonymous Complaints; and opposition to
Councilmember Items #27 submitted by Mayor Strickland requesting to amend the Huntington Beach
Municipal Code to raise Campaign Contribution Limits. (01:42:59)
Caller Jeanne Farrens was invited to speak and stated her opposition to Councilmember Items #27
submitted by Mayor Strickland requesting to amend the Huntington Beach Municipal Code to raise
Campaign Contribution Limits. (01:46:20)
Caller Scott Miller, a resident of Huntington Beach for over 50 years and practicing attorney, was called
to speak and stated his opposition to Consent Calendar Item #11 to adopt Resolution No. 2022-82
Modifying Non-Associated Salary Schedule for City Attorney to Adjust for Recent Inflation, and make
Compensation More Competitive. (01:49:16)
Caller Cooper was invited to speak and stated support for the comments already made by members of
the Huntington Beach Mobile Home Residents Coalition regarding the conflict of interest when newly
elected Councilmembers are being appointed as Liaisons to the Mobile Home Advisory Board. Cooper
stated his opposition for Councilmember Items #26 submitted by Mayor Strickland proposing an
Ordinance to Establish a Code Enforcement Compliant Process regarding Alleged Business Violations
and Prohibits the submission of Anonymous Complaints; and opposition to Councilmember Items #27
submitted by Mayor Strickland requesting to amend the Huntington Beach Municipal Code to raise
Campaign Contribution Limits. Cooper encouraged everyone to take a look at the Huntington Beach
Monarch Nature Trail and take advantage of the volunteer opportunity provided on the first Saturday of
every month at 9 AM to help maintain the trail. (01:52:27)
Caller Keith Diggs, an attorney with YIMBY Law, was invited to speak and made reference to the letter
provided in opposition to Councilmember Items #33 submitted by Councilmember McKeon opposing
RHNA Mandate and requesting an Ordinance to Ban Builder's Remedy Developments. Attorney Diggs
shared his opinion that a ban on builder's remedy development will open up the City to losing lawsuits.
(01:54:32)
COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS
Councilmember Burns announced the following appointments: Peter Rivas, Public Works Commission;
Jeanne Paris, Citizen Participation Advisory Board; Lolly McHardy, Community & Library Services
Commission; Bill Hamilton, Finance Commission; Doug Misterly, Investment Advisory Board; and Donn
Strook, Planning Commission.
Councilmember McKeon announced the following appointments: Daren MacDonald, Public Works
Commission; Don Kennedy, Citizen Participation Advisory Board; Ceason Baker, Community & Library
Services Commission; Frank Lo Grasso, Finance Commission; Martha Morrow, Investment Advisory
Board; and Tracy Pellman, Planning Commission.
84
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 9 of 26
Mayor Pro Tem Van Der Mark announced the following appointments: Mark Ellett, Investment Advisory
Board; Austin Edsell, Community and Library Services Commission; Kelly Gates, Finance Commission;
Edward ‘Butch’ Twining, Planning Commission; Michael Hoskinson, Citizen Participation Advisory Board;
and James Michalski, Public Works Commission.
Mayor Strickland announced the following appointments: Rick Wood, Planning Commission; David
Cicerone, Finance Commission; Michelle Schuetz, Community and Library Services Commission; Pano
Frousiakis, CIAB/Public Works Commission; and Mike Massie, Citizen Participation Advisory Board.
9. 22-1041 Approved Mayor Strickland’s 2023 Council Liaison List
Councilmember Bolton noted that serving Boards and Commissions is a huge time commitment, and
stated that what is presented will mean that Councilmembers will miss a lot of meetings, and she doesn't
think that would be providing good service.
Councilmember Kalmick stated his support for Councilmember Bolton's comments, and requested that
reports from Boards and Commissions be added back to the Agenda so that the community remains
informed.
Mayor Strickland responded that the Councilmember reports for the public citizen boards, commissions
and task force meetings will be presented in written form and included in the Minutes to keep the Council
meetings moving along.
Councilmember Kalmick noted that Former Councilmember Posey needs to be removed from the list as
Liaison for Orange County Vector Control since he is no longer a Councilmember, and the Orange
County Power Authority (OCPA) Liaison position needs to be corrected from a four (4) to two (2) year
term.
Councilmember Moser stated her support for Councilmember Bolton's comments, and noted that being
involved at the board, commissions and task force level is a great opportunity to connect with the great
volunteers also serving the community. She added that there will be a lot of institutional knowledge lost
by approving the proposed Council Liaison List, and stated her disappointment in Mayor Strickland's
decision on this matter. Councilmember Moser further noted that the Personnel Commission Liaison is a
two-year term, and asked if she could serve the remainder of her term. City Attorney Michael Gates
confirmed that City Council has the authority to change terms through a vote.
A substitute motion was made by Kalmick, second Moser to add back in to the Agenda a limited amount
of time for Liaison reports.
The motion failed by the following vote:
AYES: Kalmick, Moser, and Bolton
NOES: Van Der Mark, Strickland, McKeon, and Burns
A motion was made by Burns, second McKeon to, as recommended by the City Council, Public
Financing Authority, Housing Authority, Parking Authority, and Successor Agency: Approve the 2023
Council Liaison List that includes appointments to citizen boards, commissions, committees, and task
forces as presented by Mayor Strickland. (The City Clerk certifies that FPPC Form 806 "Agency Report
of Public Official Appointments" which is used to report additional compensation that officials receive
when appointing themselves to positions on committees, boards or commissions of a public agency,
85
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 10 of 26
special district and joint powers agency or authority was posted to the City's website according to law
prior to this vote.)
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
AB 1234 REPORTING — None
OPENNESS IN NEGOTIATION DISCLOSURES — None
CITY MANAGER’S REPORT
10. 22-694 Welcome to New OneHB Team Members
Assistant City Manager Travis Hopkins announced the Executive Team welcomed 16 new employees in
the past week who will be providing service in the following Departments: Community & Library Services,
Finance, Police, Public Works, and the City Manager's Office.
Assistant City Manager Hopkins also announced that Administrative Services Director Brittany Mello and
Chief Financial Officer Dahle Bulosan are departing the City for other job opportunities.
CONSENT CALENDAR
Councilmember Bolton pulled Item #11; Councilmember Burns pulled Items #13, #19, #20, and #22, for
further discussion.
Office of City Attorney
11. 22-1113 Adopted Resolution No. 2022-82 Modifying Non-Associated Salary Schedule for
City Attorney to Adjust for Recent Inflation, Make Compensation More Competitive
City Attorney Michael Gates read the Staff Report which was prepared by Chief Assistant City Attorney
Mike Vigliotta in order to inform the public regarding this item.
Councilmember Bolton pulled this item to state she cannot support this item in the absence of a
compensation study.
Councilmember Kalmick and Chief Financial Officer Bulosan discussed details of the fully encumbered
cost, and Councilmember Kalmick stated he does not have enough information to support this item.
Mayor Strickland stated he did a review of the compensation for other California elected city attorneys
and acknowledging that City Attorney Michael Gates has not had any increase since 2019 where all
other City staff have received compensation increases, he supports this item.
A motion was made by Strickland, second Van Der Mark to Adopt Resolution No. 2022-82, "A Resolution
of the City Council of the City of Huntington Beach Modifying Salary and Certain Benefits of the Elected
City Attorney."
86
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 11 of 26
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
Office of City Clerk
12. 22-989 Approved and Adopted Minutes
A motion was made by Strickland, second Kalmick to approve and adopt the City Council/Public
Financing Authority regular meeting minutes of November 15, 2022 and the special meeting minutes of
November 29, 2022.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
13. 22-241 Amended to NOT reaffirm 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
Councilmember Burns pulled this item to state his opinion that COVID-19 is not a state of emergency.
Councilmember Kalmick noted that this item allows the City's boards and commissions to safely conduct
meetings remotely, and added that currently the State plans to end the state of emergency at the end of
February.
Councilmember Moser shared that if there was not a proclaimed state of emergency, it would not be
possible for her to attend this meeting via Zoom.
A motion was made by Moser, second Kalmick 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 failed by the following vote:
AYES: Kalmick, Moser, and Bolton
NOES: Van Der Mark, Strickland, McKeon, and Burns
An amended motion was made by Burns, second Van Der Mark to NOT 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 amended motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
87
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 12 of 26
14. 22-1040 Received and filed the Maddy Act Local Appointments List — 2023 (terms on City
boards, commissions, and committees that expire in 2023) informing the public of
openings and vacancies based on 2023 expiration of current members’ terms
A motion was made by Strickland, second Kalmick to receive and file the Maddy Act Local Appointments
List - 2023 showing vacancies that will occur on City boards, commissions, and committees in the year
2023, and direct the City Clerk to post the list at official posting locations (Civic Center, Huntington
Central Library, and Main Street Library). Copies of the Maddy Act Local Appointments List - 2023 will
also be posted at all branch libraries and on the City's website.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
Administrative Services Department
15. 22-1017 Adopted Resolution No. 2022-81 modifying the pay schedule for part-time, non-
permanent, and non-classified employees to comport with the State minimum wage
increase effective January 1, 2023
A motion was made by Strickland, second Kalmick to adopt Resolution No. 2022-81, "A Resolution of the
City Council of the City of Huntington Beach Approving the Pay Schedule for Part-Time Non-Permanent
and Non-Classified Employees Effective January 1, 2023," and authorize the City Manager to take all
administrative and budgetary actions necessary to implement the revised pay schedule.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
Community Development Department
16. 22-755 Approved Final Tract Map No. 19136, accepted bonds, and authorized execution of
a Subdivision Agreement for the Gisler Residential subdivision by Lennar Homes of
California, LLC at 21141 Strathmoor Lane
A motion was made by Strickland, second Kalmick to approve Final Tract Map No. 19136 and accept the
offer of dedications pursuant to findings and requirements (Attachment No. 1); and, approve and
authorize the Mayor and City Clerk to execute the Subdivision Agreement by and between the City of
Huntington Beach and Lennar Homes of California, LLC (Attachment No. 6); and, accept Faithful
Performance Bond Nos. US00121914SU22A and US00121915SU22A, Labor and Material Bond Nos.
US00121914SU22A and US00121915SU22A, and Monument Bond No. US00121913SU22A as sureties
(Attachment No. 7) for the installation of the subdivision's required public improvements and survey
monumentation and Gisler Park improvements; and, instruct the City Clerk to file the respective bonds
with the City Treasurer and notify the Surety, XL Specialty Insurance Company, of this action.
The motion carried by the following vote:
88
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 13 of 26
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
17. 22-1031 Approved Final Tract Map No. 18079, accepted Bonds, and authorized execution of
a Subdivision Agreement for the Georgia Townhomes Subdivision by Hilltop
Townhomes LLC at 910 Georgia Street
A motion was made by Strickland, second Kalmick to approve Final Tract Map No. 18079 and accept the
offer of easement pursuant to findings and requirements (Attachment No. 1); and, approve and authorize
the Mayor and City Clerk to execute the Subdivision Agreement by and between the City of Huntington
Beach and Hilltop Townhomes LLC (Attachment No. 6); and, accept Faithful Performance Bond No.
4459427, Labor and Material Bond No. 4459427, and Monument Bond No. 4459428 as sureties
(Attachment No. 7) for the installation of the subdivision's required public improvements and survey
monumentation; and, instruct the City Clerk to file the respective bonds with the City Treasurer and notify
the Markel Insurance Company of this action.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
18. 22-1037 Approved Final Tract Map No. 19157, accepted bonds, and authorized execution of
a Subdivision Agreement for the Olson Townhomes subdivision by Olson Urban V-
Huntington Beach 4, LLC at 8371 to 8461 Talbert Avenue
A motion was made by Strickland, second Kalmick to approve Final Tract Map No. 19157 and accept the
offer of easement pursuant to findings and requirements (Attachment No. 1); and, approve and authorize
the Mayor and City Clerk to execute the Subdivision Agreement by and between the City of Huntington
Beach and Olson Urban V-Huntington Beach 4, LLC (Attachment No. 6); and, accept Faithful
Performance Bond No. PB03010409024, Labor and Material Bond No. PB03010409024, and Monument
Bond No. PB03010409039 as sureties (Attachment No. 7) for the installation of the subdivision's required
public improvements and survey monumentation; and, instruct the City Clerk to file the respective bonds
with the City Treasurer and notify the Surety, Philadelphia Indemnity Insurance Company, of this action.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
19. 22-1119 TABLED to a date uncertain item authorizing the Executive Director to Sign a Letter
of Support for a Jamboree Housing Corporation application for grant funds from
the California Departments of Health Care Services and Social Services through the
Behavior Health Continuum Infrastructure and the Community Care Expansion
Programs
Councilmember Moser explained her understanding this is a time sensitive item requiring completed
paperwork by the end of December or early January.
Assistant City Manager Hopkins confirmed that the application letter is due by January 17th, 2023, and
grant funds are limited and available only as long as funds are available.
89
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 14 of 26
Councilmember Burns shared his opinion that if the deadline is before the end of the day on January
17th, it should have been addressed much earlier by the previous Council, and he still wants to Table
this item to align with his campaign promises.
Councilmember Moser stated her understanding that the four newly elected Councilmembers
campaigned on addressing homelessness, and she believes this item definitely will support their
campaign promises. She further noted that the City's financial contribution to improving homelessness is
limited by the contract regarding the Emergency Navigation Center that exists today, and that additional
funding resources will come from regional and State funding, and this item is asking for those resources.
Councilmember Moser added that in the future the Council would have the option to approve changes.
She stated her belief that all Councilmembers are interested in decisions that will make important
impacts on homelessness and not just make "band-aide" decisions, and shared her opinion that money
may be left on the table if this item is not approved tonight.
Councilmember McKeon stated this is a critical issue for residents, and shared his opinion that if this item
is approved, there will no longer be a Navigation Center, the ability to enforce anti-camping laws will be
eliminated, and he supports tabling this item for more time to completely understand the issue.
Councilmember Kalmick stated this is a non-binding letter, but rather it is a letter of support for
Jamboree. The Council will have the option down the road to refuse Jamboree's proposal. He also
explained that the Navigation Center was purchased and built with special funding and must be turned
into permanent housing at some point. It already has a finite life. The Healing Center will actually solve
a lot of the homeless issues.
Councilmember Moser stated for clarification that if a permanent shelter is built, it will not close down the
Navigation Center nor remove the ability to enforce anti-camping laws.
Councilmember McKeon responded by describing a conversation at a recent Healing Center meeting to
document the source of his previous comment, and stated he needs more time for a fair analysis.
Mayor Pro Tem Vander Mark stated she also attended the recent Healing Center meeting and noted
there are a lot of unanswered questions. She added in her opinion it would be irresponsible to approve
this item without those questions answered.
Councilmember Moser reiterated that there is nothing binding in this item, and approving this item only
supports Jamboree's efforts to acquire government funding. She also stated that there are many
questions yet to be answered for this complicated subject, and shared her opinion that it would be
irresponsible to not support Jamboree Housing's time-sensitive application for grant funds and take the
risk of leaving funding on the table.
Councilmember Burns shared his opinion there is never free money without strings attached, and if this
item is so time sensitive it should have already been addressed by the previous Council.
A motion was made by Moser, second Kalmick to authorize and direct the Executive Director to sign
letters of support (Attachments 1 and 2) to support the grant application the California Departments of
Health Care Services and Social Services through the Behavior Health Continuum Infrastructure and the
Community Care Expansion Programs.
The motion failed by the following vote:
90
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 15 of 26
AYES: Kalmick, Moser, and Bolton
NOES: Van Der Mark, Strickland, McKeon, and Burns
An amended motion was made by Burns, second McKeon to TABLE to a date uncertain authorizing
and directing the Executive Director to sign letters of support (Attachments 1 and 2) to support the grant
application the California Departments of Health Care Services and Social Services through the Behavior
Health Continuum Infrastructure and the Community Care Expansion Programs.
The amended motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
Finance Department
20. 22-1063 Adopted Resolution No. 2022-80 accepting and approving the Development Impact
Fee (DIF) Report for Fiscal Year 2021-22 and to make findings as required by
Government Code Sections 66006 and 66001
Councilmember Burns pulled this item noting the report was over 400 pages and the 4 or 5 days of time
was not enough to really understand the implications without due diligence, and he asked Chief Financial
Officer Dahle Bulosan to explain the report.
Chief Financial Officer Dahle Bulosan presented a PowerPoint communication titled Development Impact
Fees, with slides entitled Financial Summary Report, and DIF Expenditures.
Assistant City Manager Hopkins clarified for the Councilmembers that this report is just a summary of
Development Impact Fees collected and spent during the last year. He confirmed that approving this
item is not obligating any funds, and any future expenditures will be presented for Council approval.
Councilmember Burns asked if there is any action that can be taken if this item is approved by Council.
Chief Financial Officer Bulosan confirmed this is strictly a report for the 2021/2022 fiscal year, and noted
it takes operational time to close the books and complete the audit necessary for this report.
Councilmember Burns stated if approval only affirms the report was completed, and does not have any
empowering functions, he can support this item.
A motion was made by Burns, second Van Der Mark to accept and approve the Development Impact
Fee Report for Fiscal Year Ending June 30, 2022 and Adopt Resolution No. 2022-80, "A Resolution of
the City Council of the City of Huntington Beach to Accept and Approve the Development Impact Fee
Report for Fiscal Year Ending June 30, 2022 and to Make the Findings as Required by Government
Code Sections 66006(b) and 66001(d)."
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
Fire Department
91
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 16 of 26
21. 22-930 Adopted Resolution No. 2022-79 approving the Local Hazard Mitigation Plan
enabling the City to be eligible for pre– or post–disaster hazard mitigation funds
from the Federal Emergency Management Agency (FEMA)
A motion was made by Strickland, second Kalmick to adopt Resolution No. 2022-79, "A Resolution of the
City Council of the City of Huntington Beach Approving the Updated Huntington Beach Local Hazard
Mitigation Plan."
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
22. 22-1027 Approved an appropriation of $867,000 for the California Department of Health Care
Services (DHCS) Public Provider Ground Emergency Medical Transport
Intergovernmental Transfer Program (PP-GEMT IGT) for FY 2022/23
Councilmember Burns pulled this item to request clarification and explanation.
Fire Chief Haberle explained the City manages its own ambulance company and processes appropriate
bills through Medicare and MediCal providers. The previous billing program was Ground Emergency
Transport (GEMT) which allowed for an additional $220 per Medicare/MediCal transport. The GEMT
sunsets at the end of the year, and new billing program will provide an additional $946 per
Medicare/MediCal transport which has the potential for a net revenue increase of $700,000 to $800,000
per year. Chief Haberle explained this is an inter-agency transfer of funds process whereby the
Department gets reimbursed by going first through the State, which sends it on to the Feds, and then the
reimbursement funds come to Huntington Beach.
Mayor Strickland added this process is required by State and Federal regulations and nothing can be
done about it at the municipal level.
A motion was made by Burns, second McKeon to approve an appropriation of $867,000 for the PP-
GEMT IGT Program for FY 2022/23.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
Public Works Department
23. 22-1044 Accepted the lowest responsive and responsible bid and authorized execution of a
construction contract with Stance Construction Company in the amount of
$585,014.50 for the Residential Curb Ramp Project, CC-1700
A motion was made by Strickland, second Kalmick to accept the lowest responsive and responsible bid
submitted by Stance Construction Company in the amount of $585,014.50; and authorize the Mayor and
City Clerk to execute a construction contract in a form approved by the City Attorney.
The motion carried by the following vote:
92
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 17 of 26
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
24. 22-1048 Accepted the lowest responsive and responsible bid, authorized execution of a
construction contract with Modern General Contractor Inc. in the amount of
$397,000.00 for the Police Department Traffic and Homeless Task Force Office
Renovation, CC-1678, and authorized change orders
A motion was made by Strickland, second Kalmick to accept the lowest responsive and responsible bid
submitted Modern General Contractor Inc. in the amount of $397,000.00, and authorize the Director of
Public Works to execute change orders not to exceed 20% of the contract costs, or $79,000.00.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
ADMINISTRATIVE ITEMS
25. 22-1090 Approved the Reorganization of the Administrative Services Department into the
Human Resources Department and Information Services Department, and Adopted
Resolution No. 2022-83 Amending the City’s Classification Plan to Delete the
Director of Administrative Services and Add the Positions of Director of Human
Resources and the Chief Information Officer, as amended to defund other positions
to ensure a zero net budget
Director of Administrative Services Brittany Mello presented a PowerPoint communication titled
Administrative Services Department Reorganization; with slides entitled Background (2); Proposed
Reorganization; Staff Recommendation (2); and Questions.
Councilmember Burns confirmed there were no other added director positions during this time.
Councilmember McKeon confirmed there are other positions that could be defunded to provide funds for
this addition to ensure a zero sum.
Kalmick confirmed that Library and Community Services departments were also combined two years ago
resulting in eliminating a total of two department head positions. He stated that having a Chief
Information Officer is crucial considering all City Departments are served by the Information Services
Department, including Fire and Police.
A motion was made by McKeon, second Strickland to approve the reorganization of the Administrative
Services Department into separate Human Resources and Information Services Departments, authorize
one additional full-time equivalent position and appropriate $138,140 in the Fiscal Year 22/23 budget, and
authorize the City Manager to take all administrative and budgetary actions necessary to implement the
reorganization, adopt Resolution No. 2022-83, "A Resolution of the City Council of the City of Huntington
Beach Amending the City's Classification Plan by Deleting the Director of Administrative Services and
Adding the Job Classifications of Director of Human Resources and Chief Information Officer and
Establishing Compensation." as amended to defund other positions to ensure a zero net budget.
93
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 18 of 26
The amended motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
COUNCILMEMBER ITEMS
26. 22-1092 Approved item submitted by Mayor Strickland — Proposed Ordinance to Establish
a Code Enforcement Complaint Process Regarding Alleged Business Violations
and Prohibits the Submission of Anonymous Complaints
Mayor Strickland introduced this item to address an issue brought to his attention by business owners
across the City. He further stated that people should stand up to their accusation of egregious violations
and move away from small business harassment.
Councilmember McKeon clarified that this proposed action relates to code enforcement complaints for
businesses in commercial zones only, and does not apply to businesses in residential neighborhoods.
He also stated staff will be directed to come up with alternate option(s) to present complaints in person at
City Hall.
Mayor Pro Tem Van Der Mark shared her opinion that Code Enforcement staff have been weaponized
by anonymous complaints against businesses and this must be stopped.
Councilmember Bolton shared if there is a need to address issues of bogus business complaints, it
needs to be resolved in a legally and constitutionally defensible manner.
Mayor Strickland responded that he worked closely with City Attorney Michael Gates to ensure this item
is legal and constitutional.
City Attorney Gates noted that he had read the letter which was received against this item, and stated
there were no statutes or cases that stood for the claim that Huntington Beach could not do this.
Councilmember Moser noted that it is not appropriate that business owners feel weaponized against, and
she feels this item may discourage people from calling out hazardous or unsafe conditions which does
not benefit the greater community. In support of her recommendation, she read part of the letter
received from the ACLU which described the "appropriate response is to instruct Code Officers to
evaluate whether complaints have sufficient indicia of liability to justify initiating an investigation" and to
ensure there is no intent to invade the constitutional rights of anyone making an anonymous complaint.
A motion was made by Strickland, second McKeon to request the City Attorney to return to City Council
with a proposed ordinance that bans anonymous complaints by individuals to Code Enforcement about
alleged business violations. The Ordinance should provide that Code Enforcement is welcome to
continue to take in complaints from the public about businesses, but that in order to do so, strict new
reporting requirements must be adhered to. Any and all complaints by individuals must occur in person
at City Hall, which will include a new and updated intake form be completed with all identifying
information of the complaining party. The intake of the complaint shall include a copy of the individual's
driver's license or other form of ID with a full name, address, and photo of the individual. If a City worker,
including a member of Code Enforcement is lodging the complaint, then he/she identifies him/herself
likewise.
94
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 19 of 26
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
27. 22-1093 Approved item submitted by Mayor Strickland — Request to amend the Huntington
Beach Municipal Code to raise Campaign Contribution Limits
Mayor Strickland introduced this item by explaining the current limits make it really hard to finance a
campaign, and stated his intention is to empower candidates with the donations going directly to them.
He also noted that State law precludes a successful candidate from voting on an item for which they
received more than a $250 donation, and he believes this item will provide more candidate
accountability.
Councilmember Bolton clarified with Mayor Strickland that the item raises campaign contribution limits,
but does not eliminate contributions from independent (outside) sources. Mayor Strickland shared his
opinion that this item will result in less negative campaigning.
Councilmember Kalmick reminded his fellow Councilmembers that on October 18, 2022, Council asked
staff to return in Q1 prepared to discuss campaign reform, including campaign financing limits. He stated
he does not disagree that limits are low, but would like to see more details presented in context before
voting on the issue, especially since any future candidates will probably not immediately start fundraising
efforts.
Mayor Strickland clarified this item would track State Senate/Assembly limits, including COLA
adjustments every couple of years.
Mayor Pro Tem Van Der Mark stated the intent of this item is to give the candidate financing control and
not put them in a position of having to rely upon independent expenditures.
Councilmember Moser stated her support for Councilmember Kalmick's comments. She added that she
believes increasing campaign contribution limits will not empower the average resident and help them to
feel they are an integral part of the political process.
Councilmember McKeon clarified his perspective that increasing campaign contribution limits will allow
for greater candidate free speech and self-control, and would remove the power of special interests.
A motion was made by Strickland, second McKeon to direct the City Attorney to return at the next City
Council Meeting with an amendment to the City's municipal code to raise the contribution limit to match
or track that of the limits for California's Senate/Assembly candidates.
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
28. 22-1105 Approved item submitted by Mayor Strickland — Request to perform a CEQA
review for the Great Pacific Air Show
95
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 20 of 26
Mayor Strickland introduced this item and stated he hopes to make the Great Pacific Air Show a long-
time Huntington Beach event.
Councilmember McKeon shared his perspective that this is part of the City's investment for a long-time
event as Environmental Impact Reports (EIRs) are usually good for 20 years.
Councilmember Kalmick confirmed with staff that at the moment the City has not received an application
for the 2023 Air Show. He shared his concerns about approving an item with no indication of the cost, as
well as possibly violating Charter Section 307 by also directing Chief Assistant City Attorney Mike
Vigliotta, rather than just the City Manager. Councilmember Kalmick also stated his opinion that
approving this item could set a dangerous precedent for any other special event vendor who may request
the City provide their Environmental Impact Report (EIR).
City Attorney Michael Gates responded that it is not unreasonable for Council to direct a staff member
who has required expertise.
Mayor Strickland stated he would do this for any other event that brings in $105M to the local economy.
A motion was made by Strickland, second Van Der Mark to request the City Manager to return to City
Council at the first regular City Council Meeting in January 2023 with a specific and actionable
recommendation for undertaking an adequate CEQA review of the Air Show. Chief Assistant City
Attorney, Mike Vigliotta's experience in environmental legal review will provide the leadership to retain
the consultant necessary to complete the environmental review.
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
29. 22-1094 Approved item submitted by Mayor Pro Tem Van Der Mark — Request Report on
Homelessness, Anti-Camping and Anti-Loitering Laws
Mayor Pro Tem Van Der Mark introduced this item by describing some of the results to resident quality of
life and public safety issues as the homeless population has increased since 2019. She noted that after
the 2020 election, the new City Council altered the plan of action to address these issues and as a result
Former Police Chief Handy's 90-day plan to address how the HBPD would enforce the City's and State's
anti-camping and anti-loitering laws was never implemented. Mayor Pro Tem Van Der Mark also noted
the Navigation Center for the most part is unused, and the City's public and business spaces are still
occupied by homeless encampment and loitering. She described explicit and specific unacceptable
situations that are continuing to occur as a result.
Councilmember Moser stated her support for regular reporting and transparency, and shared her opinion
that the City is doing a much better job of addressing these issues than it used to. She recommended
there also be efforts to consider reporting on ways to prevent homelessness, and to include the new
State Care and Homeless Courts. Councilmember Moser noted that Former police Chief Handy's 90-
day plan was not attached to this agenda item and asked how that plan can be reviewed so that an
informed decision can be made by Councilmembers.
Police Chief Parra confirmed that Former Chief Handy had some email notes with bullet points he had
organized for Former City Manager Oliver Chi to consider how the homeless could be educated
96
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 21 of 26
regarding the rules regarding no-camping laws and use of the Navigation Center when it became
available. Chief Parra confirmed he has never seen any specific detailed 90-day plan addressing this
issue, and confirmed that since he has been on staff the Police Department has been enforcing the laws.
A substitute motion was made by Moser, second Kalmick to direct the City Manager and the Police Chief
to return on January 17, 2023 to present the following: 1. A full report and accounting identifying all of the
City's resources, including recently hired/appointed City personnel, County programs present in the City,
and facilities like the Navigation Center, that have been employed or deployed to combat homelessness;
and 2. A full report and accounting of the Navigation Center's use since it opened in December 2020,
including the number of beds occupied over time (utilizing monthly data), where the clients/patrons are
from (have they been Huntington Beach homeless or have they been brought in by the County or other
cities), and average length of how long individuals stay and where they go once released (e.g., back on
the streets, County facilities, or back home); and TABLE to a date unknown 3. A proposal that
incorporates former Police Chief Handy's 90-day plan on how HBPD will enforce the City's and
State's anti-camping and anti-loitering laws to get the City's public spaces free from the
mentioned encampments, loitering, and their related health and safety concerns; and 4. A request
for the Police Chief to give quarterly updates at City Council on enforcement of anti-camping and anti-
loitering.
The substitute motion failed by the following vote:
AYES: Kalmick, Moser, and Bolton
NOES: Van Der Mark, Strickland, McKeon, and Burns
A motion was made by Van Der Mark, second McKeon to direct the City Manager and the Police Chief to
return on January 17, 2023 to present the following: 1. A full report and accounting identifying all of the
City's resources, including recently hired/appointed City personnel, County programs present in the City,
and facilities like the Navigation Center, that have been employed or deployed to combat homelessness;
and, 2. A full report and accounting of the Navigation Center's use since it opened in December 2020,
including the number of beds occupied over time (utilizing monthly data), where the clients/patrons are
from (have they been Huntington Beach homeless or have they been brought in by the County or other
cities), and average length of how long individuals stay and where they go once released (e.g., back on
the streets, County facilities, or back home); and, 3. A proposal that incorporates former Police Chief
Handy's 90-day plan on how HBPD will enforce the City's and State's anti-camping and anti-loitering
laws to get the City's public spaces free from the mentioned encampments, loitering, and their related
health and safety concerns; and, 4. A request for the Police Chief to give quarterly updates at City
Council on enforcement of anti-camping and anti-loitering.
The motion carried by the following vote:
AYES: Kalmick, Van Der Mark, Strickland, McKeon, and Burns
NOES: Moser, and Bolton
30. 22-1108 Approved Item submitted by Mayor Pro Tem Van Der Mark and Councilmember
McKeon — Request to Switch the City of Huntington Beach’s (The Organization)
OCPA Energy Rate to Basic Choice and provide Recommendations to Withdraw as
a Founding Member of the OCPA
Councilmember McKeon introduced this item by stating his opinion that private sector, not the
government, should be involved in competition, and described the roles of a municipality as public safety,
97
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 22 of 26
infrastructure, zoning and being a good steward of finances. He noted it is not possible to deliver 100%
green energy, and choosing to automatically enroll residents at that level has the potential to impose a
substantial financial burden. He further explained that currently Southern California Edison (SCE)
provides the option for users to participate in the green energy subsidy program by purchasing 50% or
100% green energy if they want to.
Mayor Pro Tem Van Der Mark provided a brief history of previous Councilmember actions to become a
Founding Member of the Orange County Power Authority (OCPA) and selecting the 100% green energy
as the default option for the residents and the City. She shared her opinion that it is irresponsible for the
City to default to the highest cost energy service, and noted that in all other City contracts the lowest
responsive and responsible bid is approved. Mayor Pro Tem Van Der Mark also stated that it is the City
Council's responsibility to protect the City from possible corruption and irresponsible policy.
Councilmember Kalmick, speaking as the OCPA Liaison, noted that beginning in January the OCPA
basic rate will be at a 2% discount, the middle rate will be $0.01/kW higher, and the top tier rate will be
1.5% higher than SCE's rates. He further noted that SCE has stopped their 100% green energy option
probably until 2024, and pulling out of the OCPA will eliminate choices. Councilmember Kalmick asked
that the requested staff report include how the City will meet the General Plan policies for meeting
greenhouse gas reduction goals by 2040, and meeting other State mandates.
Councilmember Kalmick confirmed with Mayor Strickland that the intent of this item is to make the Basic
Choice the default option for the City as well as for City businesses and residents, and they can choose
the higher rate option if they chose to.
Mayor Strickland noted that he had served on the Energy Committee at both the State Assembly and
Senate level and he supports renewable energy, however, 100% is not currently feasible and should not
be considered a goal in his opinion.
A motion was made by McKeon, second Van Der Mark to request the City Manager present options at
the next City Council meeting on the City's pursuit to immediately switch the City of Huntington Beach
facilities to OCPA's Basic Choice Option. We also request for staff to return at a study session before the
end of February 2023 to provide options, costs and paths forward to remove/withdraw the City entirely
from the Orange County Power Authority.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
31. 22-1110 Approved item submitted by Mayor Pro Tem Van Der Mark and Councilmember
McKeon — Request to Pause the Main Street Redevelopment Project and Solicit
Additional Community Feedback Prior to Reconsidering the Project
Mayor Pro Tem Van Der Mark introduced this item by stating that much effort has taken place on the
Main Street Redevelopment plan, she believes it is important to take a pause to resume community
engagement to ensure any proposal reflects a consensus for Downtown businesses and all residents.
She further explained that a financial feasibility study has not yet been completed for this plan.
98
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 23 of 26
Councilmember McKeon stated this is a time-sensitive plan, and the newly elected Councilmembers see
this action item as one step in fulfilling their campaign promise to take the time to speak with everybody,
and understand each position, with the goal of finding consensus for a plan that works for everyone.
Councilmember Moser acknowledged staff for their efforts to date on this project, and stated her support
for more feedback. She shared her opinion that most likely there will not be consensus, and stated her
understanding that a financial impact study has been impossible up to this point because there were still
too many moving parts, but that study will be completed at the appropriate time in the process.
A motion was made by Van Der Mark, second McKeon to request the City Manager to pause the work of
Studio One Eleven architects and re-engage the community. Return to the City Council in February
2023 to share the feedback received from the community and engage in another discussion on whether
to pursue the Main Street redesign. If direction is given to proceed, Council and staff will discuss various
options for the redesign of the first, second, and third blocks of Main Street.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
32. 22-1095 Approved item submitted by Councilmember Burns — Request for HBPD Crime
Statistics and Enhanced Public Safety Enforcement Activities
Councilmember Burns described the uptick in shoplifting and noted there are ways to escalate the
response to crimes whether from petty theft, burglary, resistance, or robbery.
Councilmember Moser suggested that regional comparisons be included in the reporting to provide
context as to how surrounding communities are being impacted. She shared her opinion that Huntington
Beach Police Officers are doing all they can, and noted some of the challenges are State-level laws.
Councilmember Burns stated that the main reason for this item is to show the residents what is being
done to address crime in Huntington Beach.
Councilmember McKeon stated his interest is in clarifying the current level of service and then being able
to measure and help to improve results.
A motion was made by Burns, second Kalmick to 1. Direct the City Manager to work with the Police Chief
and return on January 17, 2023 with a report on crime statistics over the past year, particularly regarding
theft from or damage to our local businesses and home invasion burglaries throughout the City; and, 2.
Return on January 17, 2023 with a report on what measures (without reporting/revealing tactics that
should be kept confidential) that the HBPD will take in 2023 to increase public safety and law
enforcement; and, 3. Return quarterly with crime statistics and include explanations of the HBPD's
increased efforts to fight crime; and, 4. Direct the City Attorney to return on January 17, 2023 with any
recommendations to increase prosecutorial support of the HBPD, if any.
The motion carried by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns
NOES: None
99
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 24 of 26
33. 22-1096 Approved item submitted by Councilmember McKeon — Oppose RHNA Mandate
and Adopt an Ordinance to Ban Builder’s Remedy Developments
Councilmember McKeon introduced this item stating his opinion that the effort to challenge the State's
Regional Housing Needs Assessment (RHNA) should have been exercised from the beginning because
the mandates violate local control by a Charter city. He added that if there is in fact a housing crisis, it
needs to be proven and adjudicated by the California Department of Housing and Community
Development (HCD) and Southern California Association of Government (SCAG).
Mayor Strickland confirmed the residents want to fight to protect and preserve this suburban coastal
community, and Councilmember Burns stated that the State overreach cannot be tolerated.
Councilmember Kalmick asked for clarification and more detail for this vague recommended action. City
Attorney Michael Gates replied he would return to Council in Closed Session with a specific proposal
based on recent research which points to a more compelling and robust case.
Councilmember Kalmick asked how Councilmembers can pass an ordinance that is in direct opposition
to State law, and suggested that a resolution may be a more appropriate action. City Attorney Michael
Gates explained that the way the City's zoning code is written, builder's remedy is already illegal, and
noted a new ordinance will just make it very clear that the City will not tolerate this. Councilmember
Kalmick asked for reference to the specific zoning code and City Attorney Michael Gates said he did not
have that information available, but to expect it in the follow-up action.
Councilmember Moser asked staff what the current vacancy rate is for Huntington Beach, and
Community Development Director Luna-Reynosa stated she will find out and report back later.
Mayor Strickland asked that Director Luna-Reynosa also include how many jobs have left the State, as
well as Census numbers.
A motion was made by McKeon, second Strickland to authorize the City Attorney to: 1. Challenge the
State's RHNA mandate for Huntington Beach, including its validity and any laws in support of such a
mandate over the City as a Charter City, by taking whatever legal action is required; and 2. Return to City
Council at the City Attorney's earliest convenience with an ordinance banning "Builder's Remedy"
developments from taking place in Huntington Beach. Development without proper approvals is already
not legal in the City, but this Ordinance is essential to make it clear to the entire community that
Huntington Beach will fight any developer that seeks to develop pursuant to "Builder's Remedy" laws.
The motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
34. 22-1109 Approved item submitted by Councilmember McKeon — Request for Information
and Actions Related to the RWG Report
Councilmember McKeon introduced this item by noting that the November ballot City Charter items were
a result of the RWG Report, and were defeated by a landslide. The City Charter clearly states that the
City Attorney is designated by the people. The Council can hire outside attorneys, but they must be
under the purview of the City Attorney's Office. He provided a brief background of previous Council
100
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 25 of 26
actions related to this matter, and clarified that the City Clerk, rather than the City Manager, is being
asked to remove the RWG Report from the City's website.
Councilmember Bolton clarified this item relates to the waiver of attorney-client confidentiality privileges
by the present Council pertaining to items that were considered by a previous Council, and absent any
advice from a competent and independent lawyer regarding an investigation that involves the City
Attorney or City Attorney's Office, she cannot support this item.
An amended motion was made by McKeon, second Burns to 1. City Council vote tonight to waive the
attorney-client and Closed Session confidentiality privileges for the 10 Closed Session Meetings on the
Moore v. City, Gates lawsuit for the sole purposes of allowing Mr. Gates to give his side of the story — to
return to City Council with a public presentation on what was discussed and decided (by Councilmember
votes) in those 10 Closed Sessions, and 2. City Council to vote tonight to waive the claimed attorney-
client and any other confidentiality privilege on any and all communications between Councilmembers
and Craig Steele and his attorneys regarding this "investigation," and 3. Direct the City Manager to work
with IS to preserve all emails/texts/communications between City Council Members and Craig Steele and
Richards Watson Gershon (RWG) and between former City Manager Oliver Chi and RWG, and 4. City
Council to vote tonight to waive the claimed attorney-client and any other confidentiality privilege on any
and all RWG invoices for the work they have done on this "investigation" (going back to 2020) and to
have those invoices, all of them, sent by the Finance Director and City Manager to Mr. Gates for review
to make determinations as to the propriety of the work by RWG and to see if a new investigation should
be undertaken to analyze the propriety of RWG's investigation of Mr. Gates in the first place, and the
propriety of the taxpayer dollars spent on the Steel "investigation," and 5. Direct the City Manager Clerk
to remove the RWG report from the City's website - so that there are no links and no availability on the
City's website whatsoever. If any member of the public wants a copy, they can send a request to the
City Attorney's office to produce public records under the CPRA, and 6. Direct Mr. Gates, after review of
the aforementioned communications and invoices, to return to City Council with recommendations if any
further action could be taken to correct the actions of RWG and the City Council retainer of RWG and the
spending of taxpayer moneys on such an "investigation" behind closed doors and away from the public
visibility and accountability.
The amended motion carried by the following vote:
AYES: Van Der Mark, Strickland, McKeon, and Burns
NOES: Kalmick, Moser, and Bolton
A motion was made by Burns, second McKeon to ADJOURN at 9:37 PM to the next regularly scheduled
meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, January 3, 2023,
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
101
Council/PFA Regular Minutes
Housing/Parking Authorities and Successor Agency Special Minutes
December 20, 2022, Page 26 of 26
_______________________________________
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
102
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-792 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor Pro Tem and City Council Members
SUBMITTED BY:Tony Strickland, Mayor
PREPARED BY:Robin Estanislau, City Clerk
DATE:January 17, 2023
Subject:
Annual Review of the City Code of Ethics
Statement of Issue:
Resolution No. 2016-73 specifies that an annual review of the City Code of Ethics (Code) should
occur each year.
As stated in the Code, its purpose is “to set a standard of conduct for all elected officials, officers,
employees, and members of advisory boards, commissions, committees of the City of Huntington
Beach.” The Mayor, City Manager, Chairpersons, and City Department Directors are responsible for
accomplishing this annual review.
With this memorandum, I am formally presenting the City Code of Ethics to the City Council, City
Manager, Chairpersons, and City Department Directors for their review and distribution as specified
by Resolution No. 2016-73. An explanation of the Code and link to Resolution No. 2016-73 can be
found on the City’s website under Transparency in Huntington Beach - HB Open.
Financial Impact:
None.
Recommended Action:
Direct the City Clerk to record in the official minutes that the City Code of Ethics was presented to the
City Council, City Manager, Chairpersons, and City Department Directors for their review and
distribution as required by Resolution No. 2016-73.
Alternative Action(s):
Provide additional direction to staff.
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™103
File #:22-792 MEETING DATE:1/17/2023
Strategic Plan Goal:
Non-Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2016-73, including Exhibit “A”, City of Huntington Beach Code of Ethics.
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™104
105
106
107
108
109
110
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:21-385 MEETING DATE:1/17/2023
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:
Adopt Resolution No. 2023-01 Amending the Conflict of Interest Code
Statement of Issue:
The Political Reform Act requires every local government agency to conduct a biennial review of its
Conflict of Interest (COI) Code (Code). It is requested that Council review and adopt Resolution No.
2023-01 amending the Code by incorporating significant changes to the organizational structure that
were made in late 2020 and adopted as part of the FY 2021/22 Budget, and include the new/revised
job classifications as part of a Classification and Compensation Study presented and approved by
Council in November 2022.
Financial Impact:
Not applicable.
Recommended Action:
Adopt Resolution No. 2023-01, “A Resolution of the City Council of the City of Huntington Beach
Amending its Conflict of Interest Code.”
Alternative Action(s):
Do not adopt Resolution No. 2023-01, and direct staff accordingly.
Analysis:
State law requires that cities adopt a Conflict of Interest code requiring designated employees and
consultants, and members of City Boards, Commissions, and Committees to file a Statement of
Economic Interest (Form 700).The primary purpose of a Code is to require designated positions to
disclose those types of investments, interests in real property, sources of income, and business
positions that may be affected in their decision-making. The City last amended its Code in October of
2018 by adopting Resolution No. 2018-58 (attached for reference purposes).
Resolution 2023-01 is presented for consideration and includes Exhibit B that identifies an updated
list of designated officials and employees with disclosure categories. Government Code Section
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™111
File #:21-385 MEETING DATE:1/17/2023
82019 defines a designated employee as “any officer, employee, member, or consultant of any
agency whose position with the agency: (1) Is exempt from the state civil service system by virtue of
subdivision (a), (c), (d), (e), (f), (g), or (m) of Section 4 of Article VII of the Constitution, unless the
position is elective or solely secretarial, clerical, or manual; (2) Is elective, other than an elective state
office; and, (3) Is designated in a Conflict of Interest Code because the position entails the making or
participation in the making of decisions which may foreseeably have a material effect on any financial
interest.”
To update Exhibit B, staff cross-referenced designated positions identified in 2018 with current, active
job titles included within the FY 2021/2022 Budget, and those positions added or revised as part of
the Classification and Compensation Study presented and approved by Council resolution(s) in
November 2022. Staff determined that amendments were necessary to comply with state law,
including the addition of new positions, revision of titles of existing positions, and removal of obsolete
positions. Human Resources reviewed a final draft of Exhibit B to assign disclosure category
numbers based on disclosure category descriptions (recommended by the Fair Political Practices
Commission) and identified within the resolution as Exhibit C.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2023-01, “A Resolution of the City Council of the City of Huntington Beach
Amending its Conflict of Interest Code,” including Exhibit B - Designated Officials and Employees
with Disclosure Categories
2. Resolution No. 2018-58
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-018 MEETING DATE:1/17/2023
REQUEST FOR SUCCESSOR AGENCY ACTION
SUBMITTED TO:Honorable Chair and Board Members
SUBMITTED BY:Al Zelinka, Executive Director
VIA:Sunny Rief, Acting Chief Financial Officer
PREPARED BY:Sunny Rief, Acting Chief Financial Officer
Subject:
Adopt Successor Agency Resolution Nos. 2023-01 and 2023-02 approving the Recognized
Obligation Payment Schedule (ROPS) and Administrative Budget for the Huntington Beach
Successor Agency for the period of July 1, 2023, through June 30, 2024, in accordance with
Health and Safety Code Section 34177 and related actions
Statement of Issue:
The Successor Agency is requested to approve the Recognized Obligation Payment Schedule
(ROPS) and Administrative Budget for the period of July 1, 2021 through June 30, 2022. An
approved ROPS must be submitted to the County of Orange Oversight Board by January 24, 2023,
and then to the Department of Finance (DOF) by February 1, 2023.This is the fifth year that the
Successor Agency is submitting the annual ROPS to the Countywide Oversight Board.
Financial Impact:
The ROPS provides the County Auditor-Controller with the amount of the former Redevelopment
Agency’s enforceable obligations for which the Successor Agency anticipates incurring expenditures.
Once approved by DOF, the Successor Agency will be entitled to receive property tax revenue up to
the amount of the DOF-approved enforceable obligations included in the Payment Schedule. The
ROPS requests $13,029,888 in funds to support existing legally required enforceable obligations for
FY 2023/24.
Successor Agency Recommended Action:
A) Adopt Resolution No. 2023-01, “A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Successor Agency Administrative Budget for
the Period July 1, 2023, through June 30, 2024;” and,
B) Adopt Resolution No. 2023-02, “A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Recognized Obligation Payment Schedule for
the Period July 1, 2023 - June 30, 2024 (‘ROPS 23-24’).”
City of Huntington Beach Printed on 1/11/2023Page 1 of 3
powered by Legistar™165
File #:23-018 MEETING DATE:1/17/2023
Alternative Action(s):
Do not approve the recommended action(s) and direct staff accordingly. Per Health and Safety Code
Section 34179(j), the Successor Agency is required to submit the ROPS to the Countywide Oversight
Board and the Department of Finance by February 1st of each year. Per Health and Safety Code
Section 34177 (m)(2), the Successor Agency would be assessed a $10,000 per-day penalty for
failure to submit the ROPS on a timely basis. Additionally, failure to submit the ROPS within ten (10)
days of the deadline may result in a 25% reduction of the Successor Agency’s maximum
administrative cost allowance for the period covered by the delinquent ROPS. Should the Agency fail
to submit the ROPS, expenditures totaling $6,192,043 would need to be covered through alternate
sources of funding in Fiscal Year 2023-24. The Agency would also postpone the receipt of
$6,837,845 in loan repayment funds to the Fiscal Year 2024-25 ROPS.
Analysis:
As part of the 2011 Budget Act, as recommended by then Governor Jerry Brown, Legislature
approved the dissolution of the State’s Redevelopment Agencies. After litigation, the California
Supreme Court’s ruled on the Dissolution Act that all redevelopment agencies in California were
dissolved effective February 1, 2012.
The Dissolution Act, AB 1484, and related legislation describe the procedures to wind down the
affairs of the former redevelopment agencies. These provisions include the continued payment of
recognized enforceable obligations as defined in the law. The ROPS for July 1, 2021, through June
30, 2022, requests payment for enforceable obligations associated with the former Redevelopment
Agency’s Tax Allocation bonds, development agreements, legal services, administrative, and other
miscellaneous costs. Of note, the ROPS also includes a request for funds in the amount of
$6,837,845 for repayment of a loan from the City to the former Redevelopment Agency for the
purchase of real property in 2009, approved as an enforceable obligation by the California Superior
Court on April 22, 2022. The amount is comprised of $5,170,931 in principal and $1,667,454 in
accrued interest at the three percent interest rate permitted by Health and Safety Code Section
34191.4(3). The County Oversight Board and DOF has the authority to review the ROPS and return
it to the Successor Agency for reconsideration and modification, or to disallow payment for a listed
obligation.
The County Oversight Board will review and approve the City’s current ROPS during its January 24 ,
2023 meeting. The City must submit to the State DOF by February 1, 2023. The State DOF will
make its determination by April 15th. The City’s ROPS will not be effective until approved by the State
DOF.
The Administrative Budget for the July 1, 2023, through June 30, 2024, budget reflects a total of
$250,000, which represents the maximum reimbursement to cities allowed by law for costs
associated with administering these obligations.
Environmental Status:
Not applicable.
Strategic Plan Goal:
City of Huntington Beach Printed on 1/11/2023Page 2 of 3
powered by Legistar™166
File #:23-018 MEETING DATE:1/17/2023
Financial Sustainability, Public Safety or Other
Attachment(s):
1.Resolution No. 2023-01, “A Resolution of the Successor Agency to the Redevelopment Agency of the
City of Huntington Beach Approving the Successor Agency Administrative Budget”
2. Resolution No. 2023-02, “A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Recognized Obligation Payment
Schedule for the Period July 1, 2023 - June 30, 2024 (‘ROPS 23-24’)”
3.Recognized Obligation Payment Schedule (ROPS) FY 2023-24 Summary Slides
City of Huntington Beach Printed on 1/11/2023Page 3 of 3
powered by Legistar™167
168
169
170
Expenditure Object Account ROPS 23-24 Budget
RORF Administration (350)
PERSONNEL SERVICES
Salaries/Benefits - Permanent 250,000
PERSONNEL SERVICES 250,000
Total 250,000
Revenue Summary ROPS 23-24 Budget
Administrative Allowance 250,000
Total 250,000
Significant Changes
Pursuant to AB x126 and AB 1484, the Successor Agency receives RPTTF funding from the County Auditor-
Controller to pay Enforceable Obligations. The Successor Agency also receives a 3% of actual distributed
RPTTF in the preceding fiscal year, or a minimum of $250,000 for administration of the winding down of the
former Redevelopment Agency per fiscal year. Administrative costs associated with the "wind down" and
dissolution of the Redevelopment Agency that exceed the administrative cost allowance will be funded by
Other Funds, pursuant to State rules. Administrative expenses include: personnel costs, legal, and other
professional services expenses associated with the dissolution and administration of the Successor Agency.
Successor Agency
Administrative Budget
Department Budget Summary
Other Funds by Object Account
OTHER FUNDS
171
172
173
174
1/11/23, 10:50 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/summary 1/1
Huntington Beach
ROPS 2023-24 Annual
Requested Funding for Obligations 23-24A Total 23-24B Total ROPS Total
A Obligations Funded as Follows (B+C+D)132,058 0 132,058
B Bond Proceeds 0 0 0
C Reserve Balance 132,058 0 132,058
D Other Funds 0 0 0
E Redevelopment Property Tax Trust Fund
(RPTTF) (F+G)8,969,592 3,928,238 12,897,830
F RPTTF 8,844,592 3,803,238 12,647,830
G Administrative RPTTF 125,000 125,000 250,000
H Current Period Obligations (A+E)9,101,650 3,928,238 13,029,888
Summary Detail Cash Balances Submission
175
1/11/23, 10:51 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/detail 1/4
Huntington Beach
ROPS 2023-24 Annual
Filter Export to Excel
Item #Obligation Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date Payee Description
Total
Outstanding
Obligation
Total
Requested
Funding Notes
2 Hyatt Regency
Huntington Beach
Project
OPA/DDA/Construction 09/14/1998 09/30/2023 PCH Beach
Resorts LLC
Disposition and
Development Agreement
approved on September 14,
1998 for the Waterfront
Development
--
3 2002 Tax Allocation
Refunding Bonds
Bonds Issued On or
Before 12/31/10
06/19/2002 08/01/2024 Bank of New
York Trust Co.
Tax Allocation Bonds Debt
Service Payments
2,575,000 982,000
4 1999 Tax Allocation
Refunding Bonds
Bonds Issued On or
Before 12/31/10
01/12/1999 08/01/2024 Bank of New
York Trust Co.
Tax Allocation Bonds Debt
Service Payments
1,190,000 453,625
5 2002 Tax Allocation
Refunding Bonds
Fees 11/17/2010 06/30/2024 Arbitrage
Compliance
Specialist
Tax Allocation Bonds
arbitrage rebate calculation
- Federal IRS Compliance
500 500
6 1999 Tax Allocation
Refunding Bonds
Fees 11/17/2010 06/30/2024 Arbitrage
Compliance
Specialist
Tax Allocation Bonds
arbitrage rebate calculation
- Federal IRS Compliance
500 500
8 2002 Tax Allocation
Refunding Bonds
Fees 06/19/2002 08/01/2024 Bank of New
York Mellon
Tax Allocation Bonds -
Payment to Fiscal Agent
1,600 1,600
9 1999 Tax Allocation
Refunding Bonds
Fees 01/12/1999 08/01/2024 Bank of New
York Mellon
Tax Allocation Bonds -
Payment to Fiscal Agent
1,600 1,600
12 Emerald Cove 2010
Series A Lease
Revenue Refunding
Bonds
Bonds Issued On or
Before 12/31/10
05/13/2010 09/01/2021 US Bank Emerald Cove 2010 Series
A Lease Revenue
Refunding Bonds Debt
Service Payments
6,837,845 6,837,845
14 Strand Hotel and
Mixed-Use Project,
Parking &
Infrastructure
OPA/DDA/Construction 06/01/1999 09/30/2033 CIM Group, LLC
and Kane
Ballmer and
Berkman
Property Tax Sharing
Agreement under the
Disposition and
Development Agreement
(DDA) for development of
hotel, retail, restaurant, and
public parking structure.
The Implementation of the
DDA and the Sixth
Implementation Agreement
were entered into from
June 1999 to November
2008.
4,970,141 677,904
15 Strand Project
Additional Parking
OPA/DDA/Construction 01/20/2009 09/30/2033 CIM Group, LLC Property Tax Sharing
Agreement under the
Disposition and
Development Agreement
(DDA) and Sixth
Implementation Agreement
for the Strand projects
parking structure
authorized on January 20,
2009.
337,219 49,576
Summary Detail Cash Balances Submission
176
1/11/23, 10:51 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/detail 2/4
Item #Obligation Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date Payee Description
Total
Outstanding
Obligation
Total
Requested
Funding Notes
17 Pacific City - Very Low
Income Units
OPA/DDA/Construction 10/16/2006 11/26/2024 Makar
Properties
15% affordable housing
requirement pursuant to
Attachment 5 of the Owner
Participation Agreement
approved on October 16,
2006. Of the 15% required
housing obligation, 5%
very-low income housing is
to be developed by the
Housing Authority. The
Developer is required to
provide the remaining 10%
on site.
--
21 Abdelmudi Owner
Participation
Agreement/Rent
Differential Agreement
OPA/DDA/Construction 05/28/1991 12/31/2017 Abdelmudi
Development
Company
Owner Participation
Agreement/Rent
Differential Agreement
approved on May 28, 1991
for the development of the
three story building at the
Oceanview Promenade.
The Third Implementation
Amendment took effect on
November 21, 1994.
--
29 Bella Terra Parking
Infrastructure Property
Tax Sharing
Agreement
OPA/DDA/Construction 10/02/2000 09/30/2025 Bella Terra
Associates LLC
Property Tax Sharing
Agreement required under
the terms of the Owner
Participation Agreement
(dated 10/2/2000) and
Second Implementation
Agreement (dated
9/17/2007) for the
development of the
Huntington Center (Bella
Terra). Includes legal
requirements to enforce
obligation.
3,487,056 2,347,103
30 Bella Terra Phase II
Property Tax Sharing
Agreement
OPA/DDA/Construction 10/04/2010 07/01/2036 Bella Terra
Villas, LLC and
Kane Ballmer
Berkman
Agreement approved on
October 4, 2010 for
construction of a 467
mixed-use unit project.
Construction is complete
and financed by property
tax allocations. Includes
legal requirements to
implement obligation.
12,130,583 1,417,635
50 Enforcement of
Successor Agency
dissolution
compliance and
monitoring per AB
1X26 and AB1484
Admin Costs 02/01/2012 11/26/2040 Successor
Agency, Kane
Ballmer, Keyser
Marston, and
Davis Farr P et
al
Successor Agency
administrative obligations
relating to maintaining
payments on enforceable
obligations and other
activities as required by AB
1X26
250,000 250,000
64 Successor Agency
Financial Statement
Audit
Dissolution Audits 11/04/2013 08/01/2024 Davis Farr LLP Statutorily required annual
financial statement audit
of Successor Agency.
10,000 10,000
76 Waterfront Hyatt
Regency Hotel (Parcel
5), Waterfront Hilton
Hotel/Parcel C (Parcel
6 and 7)
Project Management
Costs
12/01/2015 09/30/2016 HB Staffing Project Management Costs
for Consultant to draft
documents for the
disposition of Successor
Agency property under the
LRPMP and prepare draft
documents
--
77 Waterfront Hyatt
Regency Hotel (Parcel
5), Waterfront Hilton
Hotel/Parcel C (Parcel
6 and 7)
Project Management
Costs
07/08/2012 07/08/2016 Kane Ballmer &
Berkman
Legal Costs for outside
counsel to negotiate terms
for the disposition of
Successor Agency property
under the LRPMP and draft
various documents
including Purchase and
Sale Agreement
--
177
1/11/23, 10:51 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/detail 3/4
Item #Obligation Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date Payee Description
Total
Outstanding
Obligation
Total
Requested
Funding Notes
78 Waterfront Hyatt
Regency Hotel (Parcel
5), Waterfront Hilton
Hotel/Parcel C (Parcel
6 and 7)
Project Management
Costs
06/15/2010 09/30/2017 Keyser Marston Economic Analysis
services to prepare
financial analysis to
negotiate terms for the
disposition of Successor
Agency property under the
LRPMP
--
90 Unfunded CalPERS
Pension Liabilities
Unfunded Liabilities 06/30/2011 11/26/2026 CalPERS Unfunded CalPERS
pension obligation as per
CalPERS actuarial
valuation as of June 30,
2016
--
91 Unfunded
Supplemental
Retirement Liabilities
Unfunded Liabilities 09/30/2011 11/26/2026 US Bank Unfunded actuarial
accrued liability as of
September 30, 2013 as per
actuarial valuation by
Bartel Associates, LLC.
--
92 Unfunded OPEB
Liabilities
Unfunded Liabilities 06/30/2011 11/26/2024 CalPERS/CERBT Unfunded actuarial
accrued liability as of June
30, 2013 as per Bartel
Associates, LLC.
--
93 Land Sale Emerald
Cove
City/County Loan (Prior
06/28/11), Property
transaction
05/18/2009 10/01/2030 COHB Park A&D
Fund
Legally Binding Operative
Agreement Principal
Amount - $1,740,834,
Interest Rates 3%, Debt
Incurred on May 18, 2009
--
95 Huntington Center
Redevelopment Plan
development
City/County Loan (Prior
06/28/11), Property
transaction
06/09/2005 10/01/2030 City of
Huntington
Beach
Land and Right-of-way
acquisition costs
connected with the
Gothard-Hoover Extension
project and development of
a public storage facility
--
96 Main-Pier
Redevelopment
Project Phase II
City/County Loan (Prior
06/28/11), Property
transaction
09/10/2005 10/01/2030 City of
Huntington
Beach
Costs incurred to acquire
land within the Main-Pier
project area for Phase II
development projects
--
97 Development of
Downtown Main-Pier
project area
City/County Loan (Prior
06/28/11), Property
transaction
06/04/1990 10/01/2030 City of
Huntington
Beach
Costs incurred to acquire
land within the Main-Pier
project area to implement
the construction of parking
facilities within the
Downtown Main-Pier area
--
98 Third Block West
commercial/residential
project
City/County Loan (Prior
06/28/11), Property
transaction
06/18/2005 10/01/2030 City of
Huntington
Beach
Relocation, property
acquisition, and other
project costs associated
with the Third Block West
Condominium/Retail/Office
project in the Main-Pier
Redevelopment project
area
--
99 Second Block Alley
and Street
Improvement Project
City/County Loan (Prior
06/28/11), Property
transaction
06/10/2005 10/01/2030 City of
Huntington
Beach
Property acquisition cost
associated with the
Second Block alley and
street improvement project
--
100 Strand Project City/County Loan (Prior
06/28/11), Property
transaction
06/18/2005 10/01/2030 City of
Huntington
Beach
Relocation costs paid to
Wind and Sea Surf Shop
--
101 Pierside
Hotel/Retail/Parking
Structure Project
City/County Loan (Prior
06/28/11), Property
transaction
05/15/1992 10/01/2030 City of
Huntington
Beach
Relocation costs paid to
Terry's Coffee Shop and
First Interstate Bank
--
102 Waterfront
Commercial Master
Site Plan
City/County Loan (Prior
06/28/11), Property
transaction
03/01/1989 10/01/2030 City of
Huntington
Beach
Costs related to the
relocation, buyout, and
demolition of Driftwood
and Pacific Mobile Home
Parks related to the
Waterfront Commercial
Master Site Plan
--
103 Strand Project City/County Loan (Prior
06/28/11), Property
transaction
10/19/1992 10/01/2030 City of
Huntington
Beach
Property acquisition costs
associated with the Strand
Project
--
178
1/11/23, 10:51 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/detail 4/4
Item #Obligation Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date Payee Description
Total
Outstanding
Obligation
Total
Requested
Funding Notes
104 Operative Agreement
for the Huntington
Beach Redevelopment
Project
City/County Loan (Prior
06/28/11), Other
06/17/2002 10/01/2030 City of
Huntington
Beach
Loan repayment for
advance made on capital
projects in FY 2004/05
--
179
1/11/23, 10:52 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/cash-balance 1/2
Huntington Beach
ROPS 2023-24 Annual
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only
to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete
the Report of Cash Balances Form, see Cash Balance Tips.
Note: Cash Balances data is auto-saved.
July 1, 2020 through June 30, 2021
(Report Amounts in Whole Dollars)
A B C D E F G H
ROPS 20-21
Cash Balances
(07/01/20 -
06/30/21)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued on or before
12/31/10
Bonds issued on or after
01/01/11
Prior ROPS RPTTF and
Reserve Balances retained
for future period(s)
Rent,
Grants,
Interest, etc.
Non-Admin
and
Admin
1 Beginning
Available Cash
Balance (Actual
07/01/20)
RPTTF amount
should exclude
"A" period
distribution
amount
2 Revenue/Income
(Actual
06/30/21)
RPTTF amount
should tie to the
ROPS 20-21
total distribution
from the County
Auditor-
Controller
3 Expenditures for
ROPS 20-21
Enforceable
Obligations
(Actual
06/30/21)
4 Retention of
Available Cash
Balance (Actual
06/30/21)
RPTTF amount
retained should
only include the
amounts
distributed as
reserve for
future period(s)
5 ROPS 20-21
RPTTF Prior
Period
Adjustment
RPTTF amount
should tie to the
Agency's ROPS
20-21 PPA form
submitted to the
CAC
No entry required
Export to Excel
17,006 74,212 1,602,447
5,152,462
17,006 74,212 6,296,904
325,947
Summary Detail Cash Balances Submission
180
1/11/23, 10:52 AM RAD
https://esd.dof.ca.gov/rad/#/rops/annual/cash-balance 2/2
$0 $0 $0 $0 $132,0586Ending Actual
Available Cash
Balance
(06/30/21)
C to F = (1 + 2 - 3
- 4), G = (1 + 2 - 3
- 4 - 5)
181
Recognized Obligation Payment
Schedule (ROPS) FY 2023-24
City Council Meeting
January 17, 2023
1182
Recognized Obligation Payment Schedule
(ROPS)
•The California Supreme Court ruled on the Dissolution Act (AB 1484) to
dissolve all Redevelopment Agencies (RDAs) in California effective February
1, 2012.
•AB 1484 established procedures for payment of legally enforceable obligation
of the former RDAs by establishing Successor Agencies (SAs) through the
annual submission of the ROPS to the State Department of Finance (DOF).
•The ROPS lists all expenditures required to be paid by the Successor Agency
in the upcoming fiscal year. For Fiscal Year 2023-24, this amount is
$6,192,043.
•The Fiscal Year ROPS also includes a request for $6,837,845 for repayment
of a 2009 loan from the City to the former RDA. The DOF is ordered to make
this payment through a judgment issued by the California Supreme Court on
April 22, 2022.
2183
Recommended Action
•Adopt Resolution No. 2023-01, “A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the
Successor Agency Administrative Budget for the Period July 1, 2023, through
June 30, 2024;” and,
•Adopt Resolution No. 2023-02, “A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the
Recognized Obligation Payment Schedule for the Period July 1, 2023 -June
30, 2024 (‘ROPS 23-24’).”
•Health and Safety Code Section 34179(j) requires the ROPS to be approved
by both the Huntington Beach Successor Agency and the Countywide
Oversight Board and submitted to the Department of Finance no later than
February 1, 2023 in order to receive funding for the Fiscal Year 2023-24.
3184
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-1114 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Al Zelinka, City Manager
VIA:Eric Parra, Chief of Police
PREPARED BY:Ingrid Ono, Administrative Assistant
Subject:
Volunteer Release & Waiver of Liability Agreement
Statement of Issue:
The City currently requires Police Department volunteers to sign a liability waiver, which in part
requires them to carry vehicle insurance to cover actions while driving for the Department. Many
volunteers have discovered their insurance carriers will not cover them when driving city-owned
vehicles. As a result, these volunteers are not able to perform many of the functions the Department
normally relies on them to do.
Financial Impact:
There are no additional costs for insurance premiums. However, the City may be subject to
additional liability claims if a volunteer is involved in an auto accident within the City’s self-insurance
claims limit of $1 million.
Recommended Action:
Staff recommends City Council approve use of the Volunteer Release & Waiver of Liability
Agreement (Attachment) as drafted and approved by the City Attorney.
Alternative Action(s):
Do not approve and direct staff accordingly. If not approved, our volunteers will not be covered by
the City’s insurance while driving a city vehicle. This will cause some volunteers, whose private
insurance carriers will not cover them when driving city-owned vehicles, to limit their volunteer
contributions to tasks not requiring them to drive city-owned vehicles.
Analysis:
The City recognizes volunteerism as an integral part of what makes HB a great place to live and
work. The HBPD Volunteer programs are an important piece of the public safety model for all
residents of HB. Our volunteers complete a multitude of tasks, which would otherwise have to be
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™185
File #:22-1114 MEETING DATE:1/17/2023
completed by other paid employees. Such tasks include removal of signs and posters on city-owned
property, transporting property and supplies between various city buildings and locations, pickup and
delivery of items for our fleet management personnel, and others. In addition to these actions, our
volunteers also conduct tasks which add value and improve the quality of life for our residents, such
as vacation house checks. Approval of the Volunteer Release & Waiver of Liability Agreement allows
the Department to utilize our volunteers to their fullest potential.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will
not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Financial Sustainability, Public Safety or Other
Attachment(s):
1. HBPD Senior Volunteer Release & Waiver of Liability Agreement - CA approved.
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™186
187
188
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-028 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Eric Parra, Chief of Police
Jason Austin, Director of Homelessness and Behavioral Health Services
PREPARED BY:Catherine Jun, Assistant to the City Manager
Subject:
Comprehensive report on City resources used to address homelessness and proposed 90-
day plan to enforce City and State laws relating to homelessness
Statement of Issue:
On December 20, 2022, the City Council approved Mayor Pro Tem Van Der Mark’s H-Item request for a
comprehensive report on homelessness, including a full accounting of all City resources and facilities used to
address homelessness and a proposed 90-Day Plan to enforce City and State laws on encampments and
related concerns. This Request for Council Action provides the information requested for City Council’s
consideration.
Financial Impact:
If approved, the Police Department’s (HBPD) proposed 90 Day Plan would require one-time costs.
One-time costs include overtime for additional staffing during the 90-Day Plan period ($228,450) and three
outfitted police trucks ($270,000) for a total of $498,450. If approved, the City would make a one-time
appropriation of $500,000 (rounded up) from the General Fund balance in this fiscal year. Following the 90
days, if the Council believes the increased staffing proved to be effective, HBPD can return to Council with a
proposed plan and cost to continue this effort for a longer term.
Recommended Action:
A) Receive and file this report; and,
B) Approve the proposed 90-Day Plan and appropriate one-time funding of $500,000 in the FY
2022/23 General Fund budget.
Alternative Action(s):
Do not approve the proposed 90-Day Plan and/or receive and file this report. Direct staff accordingly.
Analysis:
Mayor Pro Tem Van Der Mark’s request for a comprehensive report on homelessness included:
City of Huntington Beach Printed on 1/11/2023Page 1 of 10
powered by Legistar™189
File #:23-028 MEETING DATE:1/17/2023
1.A full report and accounting identifying all of the City's resources, including recently hired/appointed
City personnel, County programs present in the City, and facilities like the Navigation Center, that have
been employed or deployed to combat homelessness; and
2.A full report and accounting of the Navigation Center's use since it opened in December 2020,
including the number of beds occupied over time (utilizing monthly data), where the clients/patrons are
from (have they been Huntington Beach homeless or have they been brought in by the County or other
cities), and average length of how long individuals stay and where they go once released (e.g., back on
the streets, County facilities, or back home); and
3.A proposal that incorporates former Police Chief Handy's 90-day plan on how HBPD will enforce the
City's and State's anti-camping and anti-loitering laws to get the City's public spaces free from the
mentioned encampments, loitering, and their related health and safety concerns; and
4.A request for the Police Chief to give quarterly updates at City Council on enforcement of anti-camping
and anti-loitering.
This report addresses Items 1-3 above for Council consideration. Furthermore, Police Chief Parra will present
Item 4 on a quarterly basis starting March 2023.
Background
The City’s homelessness program is comprised of the City’s Homelessness Team, Navigation Center, Be Well
OC in HB Mobile Crisis Response Program, and outside resources when available. These components work
together to support the City’s efforts to address homelessness throughout the community.
Homelessness Team
The City’s Homelessness Team is comprised of:
1.Homeless Task Force (HTF) Police Officers: Enforces City laws, responds to complaints; coordinates
regularly with HTF outreach workers to provide street outreach, coordinate access to the Navigation
Center (for individuals with HB ties) or other shelters, and Be Well
2.Homeless Task Force Outreach Workers: Engage with individuals to determine their needs, reunite
with family, or match with housing; coordinate regularly with HTF Police Officers to provide resources
to the homeless, incl. referrals to the Navigation Center and housing opportunities and linkages to
support programs
3.Administrative Staff: Manage homeless policies and programs, including Navigation Center and Be
Well operations; implement HB Cares Volunteer program; pursues funding, pro bono services and
resources, and partnerships with local groups/agencies; coordinate with HTF to gather data/prepare
reports In Fiscal Year 2020-21, 2021-22, and 2022-23
An accounting of staff costs as well as their ongoing impact (seen in Total Outreach Contacts) is below:
City of Huntington Beach Printed on 1/11/2023Page 2 of 10
powered by Legistar™190
File #:23-028 MEETING DATE:1/17/2023
Navigation Center
Built in partnership with the County of Orange during the COVID-19 pandemic, the Navigation Center opened
in December 2020 and is managed by experienced shelter operators, Mercy House. In order to qualify for the
Navigation Center, homeless clients must be referred in by the Homeless Task Force and must have a
connection to Huntington Beach.
The Center can shelter up to 174 adults. From December 2020 to December 2022, however, the County had
reduced bed capacity or issued temporary lockdowns due to COVID-19 social distancing requirements,
resulting in a lower number of clients in the Center. On December 6, 2022, the County lifted its restrictions
and restored the Center's maximum capacity of 174 beds. A graph showing the Center’s occupancy rate since
it opened is below:
Navigation Center: Occupancy Rate to December 2020 - December 2022
City of Huntington Beach Printed on 1/11/2023Page 3 of 10
powered by Legistar™191
File #:23-028 MEETING DATE:1/17/2023
Navigation Center: Client Data from December 2020 - December 2022
The Center also provides general and supportive services such as daily meals, showers, storage, housing
navigation, mental health services, and employment services. Data gathered from our clients during their stay
and utilization of the Center’s services are below:
·
City of Huntington Beach Printed on 1/11/2023Page 4 of 10
powered by Legistar™192
File #:23-028 MEETING DATE:1/17/2023
504 persons (unduplicated) served
·162 housed by HTF and Mercy House, combined
·55,072 bednights provided
·156,724 meals provided
·71 days - average length of stay at the Center
·54 persons held or found employment during their stay at the Center
Furthermore, the City regularly gathers information on Navigation Center clients’ exits and reasons for exiting
(see the next page):
City of Huntington Beach Printed on 1/11/2023Page 5 of 10
powered by Legistar™193
File #:23-028 MEETING DATE:1/17/2023
Navigation Center: Cost Data from FY 2020-21, 2021-22, and 2022-23
Before the Center opened in December 2020, the City has continually tracked costs related to both the
Center’s construction, its ongoing operating and maintenance costs, as well the funding sources used. It
should be noted that a large majority of Navigation Center costs is funded with restricted funds (typically from
outside agencies) that are intended for limited uses such as homeless services or affordable housing.
City of Huntington Beach Printed on 1/11/2023Page 6 of 10
powered by Legistar™194
File #:23-028 MEETING DATE:1/17/2023
City of Huntington Beach Printed on 1/11/2023Page 7 of 10
powered by Legistar™195
File #:23-028 MEETING DATE:1/17/2023
Be Well OC in Huntington Beach
Be Well is a mobile crisis response program that provides trained crisis counselors to respond to mental health
and/or substance use calls. Anyone in Huntington Beach - regardless of income, location, health insurance
status, or any other factor - can request Be Well services, if they are experiencing a non-emergency mental
health, substance abuse, and other non-medical crisis.
At this time, approximately 36% of clients are located in public spaces, 20% access services via telephone,
19% in private residences, 14% in Huntington Beach businesses, and the remainder at various other
locations. The majority of clients are men ages 18-64. Furthermore, among all Be Well clients, approximately
59% are homeless; when the Be Well van is not responding directly to calls for service, it conducts proactive
outreach to unsheltered individuals.
Since the program begin in August 2021, Be Well has received a total of 3,793 calls or on average 223 calls
per month - a number that has been increasing month over month and will continue to do so as a second Be
Well van and additional hours are added to operations.
The City also continues to track program costs and funding sources below. A majority of costs are funded
using either state or federal funds:
Outside Resources
Outside agencies such as the County have also invested in homelessness initiatives in Huntington Beach.
County of Orange Initiative - Project Homekey:
This project included the redevelopment of the Quality Inn into 62 Interim Housing units that will be converted
into Permanent Supportive Housing in the future. The development is open and operated by experienced non-
profit, American Family Housing with 24/7 security and two support staff living onsite. This project is not a
walk-up shelter. Supportive services will be provided on site. Lastly, the City has committed $2.4M in
restricted funds (Low-Moderate Income Housing Asset Funds) towards construction.
County of Orange Initiative - Point in Time Count:
City of Huntington Beach Printed on 1/11/2023Page 8 of 10
powered by Legistar™196
File #:23-028 MEETING DATE:1/17/2023
In January 2022, the County of Orange conducted a Point in Time Count with the last one being conducted in
2019. The count in Huntington Beach showed that its total homeless count decreased from 349 in 2019 to
330 in 2022. This count was conducted at no cost to the City.
Police Department: Proposed 90-Day Plan
Huntington Beach Police Department’s (HBPD) proposed 90-Day Plan includes a combination of outreach (as
recommended by former Chief Rob Handy), education, and enforcement. To that end, HBPD proposes the
following:
• Increase education and awareness about community resources and rights on private property
• Increase dedicated Homeless Task Force officer staffing
• Provide additional dedicated patrols to Downtown, City Beach and Sunset Beach areas
• Amend park-specific regulations to increase public safety
• Amend regulations related to activities occurring within the Main Promenade parking structure
• Initiate the procurement of three pursuit-rated police trucks
• Develop a mobile Huntington Beach Homeless Services application
• Coordinate with other City departments to address quality of life issues and public safety concerns
This plan will increase opportunities for proactive engagement and enforcement, particularly in the first 90
days of its implementation.
Furthermore, implementing this plan will require additional staffing and equipment to be effective. A summary
of those items and costs is below. Should the City Council approve this plan and find that the increased
staffing was effective, HBPD can return to Council with a proposed plan and cost to continue this effort for a
longer term.
Furthermore, HBPD’s longer-term goal is to eventually add four Homeless Task Force police officers to
achieve more proactive engagement and enforcement on an ongoing basis. The fully burdened cost for all
four positions is $777,084, at this time.
City of Huntington Beach Printed on 1/11/2023Page 9 of 10
powered by Legistar™197
File #:23-028 MEETING DATE:1/17/2023
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result
in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Homelessness Response
Attachment(s):
1. PowerPoint Presentation
City of Huntington Beach Printed on 1/11/2023Page 10 of 10
powered by Legistar™198
CITY SERVICES TO ADDRESSHOMELESSNESSReport on the City’s Homeless Services, Resources & Proposed 90 Day PlanJanuary 17, 2023199
On December 20, 2022, City Council approved Mayor Pro Tem Van Der Mark's H-Item, requesting staff to provide a comprehensive report on homelessness that included:1.A full report and accounting of all City resources (e.g., personnel, programs, facilities) used to address homelessness2.A full report and accounting of the Navigation Center's use since it opened in December 2020, as well as general information about our homeless clients3.A proposal that incorporates former Police Chief Handy's 90-day plan for HBPD to enforce the City's and State's laws, regarding encampments and related concerns4.A request for the Police Chief to give quarterly updates at City Council on enforcement effortsTonight's report will address items 1-3 for City Council's consideration. Item 4 will return to City Council quarterly, beginning in March 2023.BACKGROUND200
HOMELESSNESS TEAMPERSONNEL COSTS201
NAVIGATION CENTER: OCCUPANCY RATEDECEMBER 2020 – DECEMBER 2022From December 2020 to December 2022, the County reduced the Center's bed capacity and/or issued lockdowns due to COVID-19.On December 6, 2022, the County lifted those restrictions and restored the Center's max capacity of 174 beds for homeless individuals with ties to Huntington Beach.Percentages represent the occupancy rate based on the capacity at that time.202
NAVIGATION CENTER:CLIENT DATADECEMBER 2020 – DECEMBER 2022203
NAVIGATION CENTER: EXIT DATADECEMBER 2020 – DECEMBER 2022204
NAVIGATION CENTER: COST DATA FISCAL YEARS 2020-21, 2021-22, 2022-23205
BE WELL OC IN HB: CLIENT DATAAUGUST 2021 – DECEMBER 2022206
BE WELL OC IN HB: CLIENT DATA & COSTAUGUST/SEPTEMBER 2021 – DECEMBER 2022 & FISCAL YEARS 2020-21, 2021-22, 2022-23207
PROJECT HOMEKEY:• Redevelopment of the Quality Inn into 62 Interim Housing units that will be converted into Permanent Supportive Housing in the future.• Site will be operated by experienced non-profit, American Family Housing with 24/7 security and two support staff living onsite. This project is not a walk-up shelter.• Supportive services will be provided on site.• City committed $2.4M in restricted funds (Low-Moderate Income Housing Asset Funds) towards construction.POINT IN TIME SURVEY• In January 2022, the County of Orange conducted a Point in Time Count.• The count in Huntington Beach showed that its total homeless count decreased from 349 in 2019 to 330 in 2022.COUNTY OF ORANGE INITIATIVES208
Police Department:Proposed 90-Day Plan209
Current EffortsPolice Department’s Homeless Task Force• Four officers and one sergeant• Primarily response driven based upon information received from the communityFuture Staffing Goal • Add four officers to the unit to increase opportunities for proactive engagement and enforcement. 210
Proposed Community Engagement Plan Chief Handy’s 90‐day plan focused on outreach efforts to bring awareness to Navigation Center openingOutreach - Education - Enforcement In addition to continued outreach regarding the Navigation Center, we propose the following:•Increase education and awareness about community resources and rights on private property•Increase dedicated Homeless Task Force officer staffing •Provide additional dedicated patrols to Downtown, City Beach and Sunset Beach areas•Amend park‐specific regulations to increase public safety•Amend regulations related to activities occurring within the Main Promenade parking structure•Initiate the procurement of three pursuit‐rated police trucks•Develop a mobile Huntington Beach Homeless Services application•Coordinate with other city departments to address quality of life issues and public safety concernsApproximate One‐Time Overtime CostsHTF Business Outreach$23,660HTF Officer Patrols$47,230HTF Sergeant Staffing$15,600Downtown / Beach Staffing$141,960Total Overtime for 90‐days$228,450Costs for Unit Expansion4 Fully Burdened Officers$777,084One‐Time Equipment Costs3 Outfitted Police Trucks$270,000211
Proposed Community Engagement Plan Metrics of Success•Increase in the percentage of individuals accepting services•Increase in the percentage of occupied bed space at the Navigation Center•Increase in the number of referrals to shelters, housing, and supportive programs •Improve partnerships with the business community•Recap of the outreach, education and enforcement efforts 90‐Day Report Back•Assess the engagement plans impact and identify future needs •Bids for additional vehicles•Costs of increased engagement activities•Costs for Homeless Services Mobile Application and status of program •Status of Municipal Code amendments 212
CITY SERVICES TO ADDRESSHOMELESSNESSHomeless Services, Resources & Proposed 90 Day PlanJanuary 17, 2023213
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-042 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Al Zelinka, City Manager
PREPARED BY:Travis K. Hopkins, Assistant City Manager
Subject:
Consider selection of Huntington Beach’s Orange County Power Authority (OCPA) Default
Energy Product Rate and the City of Huntington Beach’s Municipal Accounts Rate Selection.
Statement of Issue:
In February 2021, the City of Huntington Beach approved its participation as a Founding Member of
the Orange County Power Authority (OCPA) after deciding to join the OCPA in Dec. 2020 .
More recently on December 20, 2022, the City Council requested the following:
1. Options to change the Huntington Beach OCPA default rate offering for new OCPA customers
to Basic Choice.
2. Options to change the OCPA default rate for City of Huntington Beach municipal accounts to
Basic Choice.
3. Return to City Council at a Study Session in February 2023 with options, costs, and path
forward to remove/withdraw the City from OCPA.
This item is in regard to the first two items requested on December 20, 2022.
Financial Impact:
There is no direct fiscal impact to the City for changing the Default Rate offered by OCPA to
customers in Huntington Beach. Any customer may change their default rate selection or opt-out of
OCPA to return as a customer of Southern California Edison.
If the City municipal accounts switch from the current 100% Renewable Choice to Basic Choice, the
estimated annual savings to the City are $234,830. This estimate was provided to the City by OCPA.
Recommended Action:
The following options are available to the City Council for the default energy product for new OCPA
Customers in Huntington Beach:
City of Huntington Beach Printed on 1/11/2023Page 1 of 4
powered by Legistar™214
File #:23-042 MEETING DATE:1/17/2023
A) Take no action. The current, default energy offering of 100% Renewable will remain for all
new OCPA customers;
B) Select the Smart Choice option (at least 69% renewable energy) as the default offering for
new OCPA customers; or
C) Select the Basic Choice option (at least 38.5% renewable energy) as the default offering for
new OCPA customer.
The following options are available to the City Council for City of Huntington Beach municipal
accounts.
A) Take no action, and retain the current energy offering of 100% Renewable for municipal
accounts;
B) Select Smart Choice (at least 69% renewable energy) for municipal accounts; or
C) Select Basic Choice (at least 38.5% renewable energy) for municipal accounts.
Alternative Action(s):
Do not approve one or more recommendation above and direct staff accordingly.
Analysis:
The City finalized its decision and joined OCPA, a Community Choice Energy (CCE) Joint Power
Authority (JPA) in December 2020. Then on February 2021, the City Council approved its Founding
Member participation in the OCPA (see Attachment).
In December 2021, the OCPA Board of Directors approved the addition of the County of Orange
unincorporated areas as its fifth member agency with the anticipation of launching its service to all
customers in 2023. OCPA launched services to customers in 2022 in the cities of Huntington Beach,
Buena Park, Fullerton, and Irvine in two phases: municipal and commercial customers were enrolled
in April 2022; residential customers were enrolled in October 2022.
As a member of the OCPA, the City of Huntington Beach selected the 100% Renewable Choice as
the default energy product for Huntington Beach OCPA customers as well as Huntington Beach
Municipal accounts. New members are enrolled at the default energy product and may select any of
the three OCPA energy product choices as well as opting-out to Southern California Edison (SCE)
generation services at any time.
The following are the three energy product offerings for new OCPA customers:
1. Basic Choice: If the City selects 38.5% renewables as its default energy product offering, then
all Huntington Beach customers will automatically be enrolled in the Basic Choice product
(38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least
69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA
service altogether and stays with SCE. Renewable energy content will increase over time.
City of Huntington Beach Printed on 1/11/2023Page 2 of 4
powered by Legistar™215
File #:23-042 MEETING DATE:1/17/2023
2. Smart Choice: If the City selects at least 69% renewables as its default energy product, then
all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at
least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts
down to the Basic Choice product, or the customer opts-out of OCPA service altogether and
stays with SCE. Renewable energy content will increase over time.
3. 100% Renewable Choice: If the City selects 100% renewables as its default energy product,
then all Huntington Beach customers will automatically be enrolled in the 100% Renewables
product unless the customer opts-down to either the Basic Choice or the Smart Choice
products or the customer opts-out of OCPA service altogether and stays with SCE.
The City Council may choose to change the default energy product by majority vote of the City
Council. This will be transmitted to OCPA with details of the City Council direction. OCPA has
estimated it will take approximately 10 business days but no longer than one full billing cycle (up to 60
days) to implement the new Huntington Beach default rate for new customers.
The City has 462 municipal accounts providing services to City facilities that are on the 100%
Renewable Choice plan. The City may also change the City municipal accounts to one of the OCPA
three choices. OCPA reviewed these accounts and estimated the annual cost reduction of $234,830
if the Basic Choice was chosen over the current 100% Renewable Choice.
New Southern California Edison (SCE) rates are effective January 1, 2023. OCPA new generation rates are
scheduled to take effect in the billing system on January 9, 2023. With the implementation of the new rates, the
OCPA Basic Choice will be 2% less than the standard SCE generation rates. The OCPA new Smart Choice is 1
cent per kWh more than Basic Choice and 100% Renewable Choice is 1.5 cents per kWh more than Basic
Choice. All customers will receive the new OCPA generation rates.
If the City Council chooses to change the municipal accounts to Basic Choice or other option, OCPA has
estimated that all municipal accounts will be moved to the new rate within one full billing cycle (up to 60 days)
after notification by the City.
OCPA’s 2023 rates will be published and communicated on all customer bills, and available in the annual Joint
Rate Comparison (JRC) mailer sent to all customers in spring 2023. Each IOU (Investor-Owned-Utility) and
CCA are required to develop a JRC that shows how the rates compare to each other - each time rates are
changed. With SCE new rates effective January 1, 2023, the new JRC will be completed and published by the
end of March 2023. Rate comparisons are also available on the CCA and IOU websites.
The City Council also requested options, costs and paths for the City to withdraw as a Founding
member of the OCPA. Staff is performing research on this topic and will bring forward to City Council
in a study session in February 2022.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result
in direct or indirect physical changes in the environment do not constitute a project.
City of Huntington Beach Printed on 1/11/2023Page 3 of 4
powered by Legistar™216
File #:23-042 MEETING DATE:1/17/2023
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. December 20, 2022 Van Der Mark McKeon Council Item
2. February 1, 2022 OCPA City Council Report
3. February 1, 2021 OCPA City Council Report
City of Huntington Beach Printed on 1/11/2023Page 4 of 4
powered by Legistar™217
2000 Main Street,
t oti'' Huntington Beach,CA
s p 92648
City of Huntington Beachr nireovED
File #: 22-1108 MEETING DATE: 12/20/2022
Submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon - Request to Switch
the City of Huntington Beach's (The Organization) OCPA Energy Rate to Basic Choice and
provide Recommendations to Withdraw as a Founding Member of the OCPA
We request the City Manager to present options at the next City Council meeting on the City's pursuit
to immediately switch the City of Huntington Beach facilities to OCPA's Basic Choice Option. We
also request for staff to return at a study session before the end of February 2023 to provide options,
costs and paths forward to remove/withdraw the City entirely from the Orange County Power
Authority.
City of Huntington Beach Page 1 of 1 Printed on 12/ 14/2022
powered by LeglstarT"
218
7.41
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING—COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GRACEY VAN DER MARK, MAYOR PRO TEM
CASEY MCKEON, CITY COUNCILMEMBER
DATE: DECEMBER 20, 2022
SUBJECT: REQUEST TO SWITCH THE CITY OF HUNTINGTON BEACH'S(THE ORGANIZATION)
OCPA ENERGY RATE TO BASIC CHOICE AND PROVIDE RECOMMENDATIONS TO
WITHDRAW AS A FOUNDING MEMBER OF THE OCPA
In December 2020, the City of Huntington Beach was entered into the Orange County Power
Authority(OCPA) as a founding member. The OCPA is a joint powers authority with three other
founding members including the cities of Irvine, Buena Park, and Fullerton.
The City Council, in February 2022, approved the 100% Renewable Choice energy rate as the
default rate for Huntington Beach customers, including the City. This rate is the most ambitious
and aggressive plan that has the potential to impose a substantial financial burden on our
residents in their purchase of energy.
Since the City of Huntington Beach pays the highest rates from OCPA, it is irresponsible to the
taxpayer to spend more money than is necessary for a product of service. In all other contracts
with our City, the lowest responsible bid is chosen. In this case the highest rates were chosen,
yet the power comes from the same source as the lowest rate. This highly ambitious energy-
pricing plan for residents, in light of the questionable return on investment, should be corrected
by the City Council in order to protect residents. As such, the City should switch its default rate
for City facilities from 100% Renewable Choice to Basic Choice, the lowest rate that is also most
comparable to the current SCE default rate.
RECOMMENDED ACTION
We request the City Manager to present options at the next City Council meeting on the City's
pursuit to immediately switch the City of Huntington Beach facilities to OCPA's Basic Choice
Option. We also request for staff to return at a study session before the end of February 2023 to
provide options, costs and paths forward to remove/withdraw the City entirely from the Orange
County Power Authority.
219
r ' .
2000 Main Street,
Huntington Beach,CA
City of Huntington Beach Appkot 6-1(P,,,-!va)
FaP— PEFW1tivr1 t/CAt1t102%AL
Ct.TOf-1G-l2S
TV Fi4L'l un ES
File #: 22-074 MEETING DATE: 2/1/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
PREPARED BY: Sean Joyce, Interim City Manager
Subject:
Orange County Power Authority (OCPA) Default Rate Selection
Statement of Issue:
In February 2021 , the City Council approved its Founding Member participation in the Orange County
Power Authority (OCPA) (see Attachment 1 for accompanying staff report). The City finalized its
decision and joined in Dec. 2020.
In April 2022, OCPA is expected to launch service to municipal and commercial customers in the
cities of Huntington Beach, Buena Park, Fullerton, and Irvine. In October 2022, OCPA will phase in all
residential customers within its service territory. In December 2021, the OCPA Board of Directors
approved the addition of the County of Orange unincorporated areas as its fifth member agency and
anticipates launching its service to all customers in 2023. At full launch, OCPA's service territory will
cover approximately 366,000 retail service accounts (governmental, businesses and residents),
making it the sixth-largest community choice energy provider in the State of California.
As a member of the OCPA, the City of Huntington Beach may select a default energy product offering
prior to OCPA's distribution of its first customer enrollment notice describing the OCPA Program,
informing customers of their opt-out rights to remain with utility bundled generation service in early
February 2022. OCPA's energy product offerings include the Basic Choice product, which will include
38.5% renewable energy content in 2022 that increases over time; the Smart Choice product, which
will include at least 69% renewable energy content in 2022 that increases over time; and the 100%
Renewable Choice product, which will maintain a 100% renewable energy content. The "default
product offering" is the power choice that will go into effect unless the consumer makes a different
choice. All customers will have the option to upgrade, downgrade, or opt-out and return to service
with Southern California Edison (SCE) at any time.
Staff is seeking direction from the City Council on the most appropriate selection of a "default energy
product offering" for all customers in the City.
The following are the three energy product offerings:
1. Basic Choice: If the City selects 38.5% renewables as its default energy product offering, then
City of Huntington Beach Page 1 of 4 Printed on 1262022
po ere(29j Legistar'220
File #: 22-074 MEETING DATE: 2/1/2022
all Huntington Beach customers will automatically be enrolled in the Basic Choice product
38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least
69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA
service altogether and stays with SCE.
2. Smart Choice: If the City selects at least 69% renewables as its default energy product, then
all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at
least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts-
down to the Basic Choice product, or the customer opts-out of OCPA service altogether and
stays with SCE.
3. 100% Renewable Choice: If the City selects 100% renewables as its default energy product,
then all Huntington Beach customers will automatically be enrolled in the 100% Renewables
product unless the customer opts-down to either the Basic Choice or the Smart Choice
products or the customer opts-out of OCPA service altogether and stays with SCE.
OCPA Status Report - Default Energy Product Offerings
Buena Park: Selected Smart Choice product (at least 69% renewables) as a default energy
product offering for their residential and commercial customers on January 25, 2022. The City
has not yet made a determination concerning the default energy product offering for City
facilities.
Irvine - Selected Smart Choice product (at least 69% renewable) as a default energy product
offering for their residential and commercial customers and is expected to take final vote on
February 8, 2022. The Irvine City Council also decided that all City facilities will default into the
100% Renewable Choice product.
Fullerton - Will choose a default Energy Product on February 1 , 2022
Huntington Beach - Will choose a default Energy Product on February 1, 2022
Low-income qualified customers (customers currently enrolled in the California Alternate Rates for
Energy (CARE) and the Family Electric Rate Assistance (FERA) discount programs will continue to
receive all benefits and discounts as an OCPA customer.
Mayor Pro Tern Mike Posey serves as the City's member on OCPA Board of Directors;
Councilmember Dan Kalmick is the City's alternate. As the City's representative, Mayor Pro Tern
Posey has been integrally involved on the Board of OCPA since its inception. As such, Mayor Pro
Tern Posey may wish to supplement this report with comments of his own and may offer a
recommendation for action this evening.
Financial Impact:
The OCPA Board approved rate design set the 2022 rates for Basic Choice at parity to SCE,
assuming all OCPA member agencies select Smart Choice as the default service offering. This
approved rate design allows for a smaller premium for Smart Choice (estimated at SCE rate plus a
penny per kWh or 3.7% above SCE for average residential customer) and 100% Renewable Choice
estimated at SCE rate plus 1 .5 cents per kWh or 5. 6% above SCE for average residential customer).
City of Huntington Beach Page 2 of 4 Printed on 1/26/2022
oowerc423 leg,star'"
221
File #: 22-074 MEETING DATE: 2/1/2022
In addition, the OCPA Board also approved the Net Energy Metering enhancements from the SCE
NEM program, as follows:
1. Set NSC rate at 10% above the incumbent IOU NSC rate
2. Provide monthly billing to NEM customers
3. Set all customers annual true-up period to April
OCPA Board Approved Rate Design Bill Impacts
For a typical residential customer, the bill impacts for the three OCPA product offerings are estimated
by OCPA as follows:
Estimated "I'ypical Residential Bill Comparison
Basic Choice, 425 KWIC Per rtlonth
Charge Type OCPA SCE. Difference
Generation S41.51 S49.96 S8.45)
SCE SurchargeS8.45 S0.00 S8.45
SCE Delivery S64.44 S64.44 S0.00
Total S 114.40 S114.40 S0.00 0.0%
Estimated "rypical Residential Bill Comparison
Smart Choice. 425 KIVh Per Month
Charge Type OCPA SCE Difference
Generation S45.76 S49.96 S4.2l1l
SCE- SurcharacSS.45 S0.00 S8.45
SCE Delivery S64.44 S64.44 S0.00
Total S 115.65 S114.40 4.25 3).7%
Estimated Typical Residential Bill Comparison
100% Renewable Eger• • Choice, 425 KIVh Per Alm&
Charge Type OCPA SCE Difference
Generation S47.89 S49.96 S_o7)
SCE Surchame:SS.45 S0.00 S8.45
SCE Delivery S64.44 S64.44 S0.00
Total S120.75 S114.40 S6.JS 5.6%
The detailed rate design analysis is included in the attached January 11, 2022 OCPA staff report
Attachment 2).
In light of the lack of direct staff involvement in the development of the OCPA rate design analysis
attached here, OCPA staff will attend our meeting to discuss the options and answer related
questions.
Recommended Action:
City of Huntington Beach Page 3 of 4 Printed on 1/26/2022
PoHert424 Leti,siar'"
222
File #: 22-074 MEETING DATE: 2/1/2022
Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy product
offering for residential and commercial customers in Huntington Beach, and consider the same or a
different energy product offering (and corresponding rate and environmental benefits) for the City's
municipal energy accounts.
Alternative Action(s):
The following options are available to the City Council:
1. Select 100% Renewable as a default energy product offering for all OCPA Customers in
Huntington Beach;
2. Select Smart Choice (at least 69% renewables) as a default energy product offering for all
OCPA Customers in Huntington Beach; or
3. Select Basic Choice (38.5% renewables) as a default energy product offering for all OCPA
Customers in Huntington Beach.
Staff has no specific recommendation.
Analysis:
The following is OCPA's rate design analysis in the attached January 11 , 2022 report. Under the
approved rate design scenario (scenario 3), the cost impacts for each of the default product offering
for the City's municipal energy accounts are estimated as follows:
Cost Increase (VkWh) Cost Increase (S)
Basic Choice 0 0
Smart Choice 01 Approx. $141k
100% renewable Choice 015 Approx. S212k
Over the past decade, the City has worked diligently to reduce energy consumption. The cost spent
on energy in 2019 was approximately $3.OM. This expenditure has been reduced from what was
4.7M in 2014. This was done largely through projects such as the LED conversion of City
streetlights and the solar panels that were installed at City facilities. Even after paying for the debt
service on these projects, the savings far exceed the cost increase of implementing renewable
energy. This important policy matter before you represents an opportunity to extend the City's
commitment to environmental stewardship.
Environmental Status:
Not applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1 . February 1 , 2021 Request for City Council Action Report
2. OCPA January 11, 2022 Report
City of Huntington Beach Page 4 of 4 Printed on 1/2612022
oowere425 Legis;aC223
City Council/ ACTION AGENDA February 1, 2022
Public Financing Authority
offering for residential and commercial customers in Huntington Beach, and consider the same or
a different energy product offering (and corresponding rate and environmental benefits) for the
City's municipal energy accounts
Approved 6-1 (Peterson-No) 100% Renewable Choice Alternative Default Energy Product
Offering for Residential/Commercial Customers; and
Approved 6-1 (Peterson-No) 100% Renewable Choice Alternative Default Energy Product
Offering for City facilities
COUNCILMEMBER ITEMS
19. 22-079 Approved Item Submitted by Mayor Delgleize, Councilmember Moser
and Councilmember Bolton - Consider support of a Blood Drive in
collaboration with the UCI Health Bloodmobile, and direct staff to
coordinate with UCI Health to host the event at a City Facility
Recommended Action:
We are recommending the following
1. Direct staff to collaborate with UCI Health to host a blood drive at a City of Huntington
Beach facility tentatively on March 5, 2022, and.
2. Direct staff to highlight and promote resources for additional opportunities for the
community to participate in blood drives
Approved 7-0
COUNCILMEMBER COMMENTS (Not Agendized)
Comments provided by: Posey, Carr, Moser
ADJOURNMENT - 9:39 PM
A Strategic Planning Workshop has been scheduled for 9 00 AM, Friday, February 4. 2022 at
Huntington Beach Central Library, Rooms C & D. 7111 Talbert Avenue, Huntington Beach, California.
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday. February 15, 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:/Iwww.huntingtonbeachca.gov
224
City Council/ ACTION AGENDA February 1, 2022
Public Financing Authority
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract
Between the City of Huntington Beach and Disability Access Consultants. LLC for ADA Self-
Evaluation and Transition Plan "
Approved 7-0
15. 22-069 ITEM WITHDRAWN Approwed and authorized exeGution 4a4a-Pfe#essiertal-
Adv Services
Recommended--Artier:
Between the Crty Of HURbRgtOR Beach and- K Street Consulting. LLC fOF Legislative y
16. 22.061 Approved and authorized execution of Amendment No. 5 to Agreement
with Biggs Cardosa Associates, Inc. (BCA) for bridge design
services in the amount of $301,857.00, for a total contract amount not
to exceed $3,115,654.00 and extending the contract term 3 years
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute Amendment No. 5 to Agreement
Between the City of Huntington Beach and Biggs Cardosa Associates. Inc for Bridge Design
Services.
Approved 7-0
17. 22-062 Approved the purchase of 23 replacement vehicles from National
Auto Fleet Group using lease financing and authorized the City
Manager to enter into all documents necessary to lease finance the
purchase of the vehicles
Recommended Action:
Approve the purchase of 23 replacement vehicles utilizing 5-year lease financing at an interest
rate not to exceed 2 375 percent and authorize the City Manager to enter into all documents
necessary to lease finance the purchase of the vehicles and take all administrative and
budgetary actions necessary to complete the purchase and financing.
Approved 7- 0
ADMINISTRATIVE ITEMS
18. 22-074 Selected Orange County Power Authority (OCPA) Alternative Default
Energy Product Offerings for Residential/Commercial customers and
City facilities offered
Recommended Action:
Select Basic Choice, Smart Choice. or 100% Renewable Choice as the default energy product
225
17—,e A
City of Huntington Beach (pE7v,o,4.RZ-wo)
File #: 21-085 MEETING DATE: 2/1/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Consider Maintaining Membership with the Orange County Power Authority (OCPA), a
Community Choice Energy (CCE) Joint Power Authority (JPA)
Statement of Issue:
On December 10, 2020, the City approved the required Ordinance, Resolution, and JPA agreement
necessary for Huntington Beach to join the Orange County Power Authority (OCPA), a Community
Choices Energy (CCE) Joint Power Authority (JPA). The decision was made to join the CCE at that
time for a variety of reasons, including the following:
The potential for ongoing electrical power cost savings when compared against rates charged
by SCE.
By joining in December 2020, the City would be considered a Founding Party member, which
places Huntington Beach onto the JPA Executive Board Committee.
The agreements expressly allowed for any participating agency to withdraw from the JPA for
any reason and without any liability or cost by March 1 , 2021 (subsequently, the withdrawal
deadline was extended to April 1 , 2021).
Given those factors, as part of the determination to join the OCPA, the City Council also directed that
staff complete a full assessment of the proposed JPAs feasibility plan, and bring those findings back
for review at the City's February 1 , 2021 meeting. At that time, the City Council would make a final
determination on whether or not to participate in the CCE.
Subsequently, staff coordinated with MRW & Associates (MRW), an independent firm that was hired
to assess the OCPAs implementation plan. A summary of MRWs findings (see attached report
assessing OCPA) is as follows:
The OCPA CCE is expected to be financially feasible.
City of Huntington Beach Page 1 of 6 Printed on 1/27/2021
powereaE*Legistar-226
File #: 21-085 MEETING DATE: 2/1/2021
The MRW analysis confirmed that OCPA is projected to be able to provide power at rates
lower than Southern California Edison.
The MRW assessment identified that the financial margins when comparing projected OCPA
rates against SCE rates are the smallest during the first 2- 3 years of operation, and that the
margins increase over substantially over time.
The financial analysis found that OCPA's Implementation Plan is generally sound, developed
utilizing reasonable and conservative assumptions. MRW did identify that the projections for
the amount of initial working capital that OCPA would need could be slightly understated.
o Of note, given that the City of Irvine is assuming all of the initial risk / start-up costs, this
does not seem to of particular concern regarding the viability of OCPA.
The OCPA agreement helps minimizes potential financial risk for Huntington Beach by
specifically stating that the agencies are not required to make any financial contributions or
payments to OCPA, and that OCPA has no right to require a contribution or payment.
A benefit of remaining a member of OCPA is that the City of Irvine has agreed to provide up-
front funding for implementation, start-up costs, as well as collateral funds in order to secure
all of the needed initial financing.
At this time, the City Council has the option to maintain membership with the OCPA JPA, or withdraw
from the CCE organization with no cost or liability impacts.
Financial Impact:
There is no direct fiscal impact from joining the OCPA JPA. Per the JPA agreement, participating
agencies are not required to make any financial contribution. Rather, the City of Irvine has agreed
through the JPA agreement to cover all initial start-up costs associated with establishing the new
OCPA entity. Those costs that Irvine has agreed to cover include the following:
OCPA agency start-up costs, which are estimated at $2.5M.
Initial working capital cash collateral of up to $51VI for costs associated with procuring a
working capital loan.
Under the OCPA JPA agreement, Founding Party members have no financial obligation to the CCE
entity being formed, which provides financial protections for Huntington Beach. The OCPA JPA
agreement specifically states that the debts of the OCPA cannot be transferred to its member cities,
nor can the OCPA compel a member city to financially contribute to the OCPA. Therefore, the City's
General Fund should not be impacted by maintaining membership, nor will membership impact the
City's credit rating.
Recommended Action:
The City Council has the following options:
City of Huntington Beach Page 2 of 6 Printed on 1/27/2021
powerE60:1j LegistarTI227
File #: 21-085 MEETING DATE: 2/1/2021
A) Maintain membership in the Orange County Power Authority Community Choice Energy Joint
Power Authority,
OR
B) Withdraw from the Orange County Power Authority, and direct staff to complete all requisite
documents necessary to terminate our participation in the CCE JPA.
Alternative Action(s):
Do not select either of the options and direct staff accordingly.
Analysis:
In 2018, the City of Irvine initiated a feasibility study to assess the possibility of implementing a CCE
program for their community. Those efforts evolved over the past two years, and in 2020, Irvine
extended an invitation to all Orange County municipalities, asking interested parties to consider
joining them in forming a CCE JPA, which has since been named the Orange County Power Authority
OCPA).
A total of five (5) agencies are currently part of the JPA, including the cities of Fullerton, Buena Park,
Lake Forest, Huntington Beach, and Irvine. These five jurisdictions are considered the Founding
Party member agencies in the JPA and will be placed on the JPAs Executive Board Committee. Also
of note, per OCPA staff, there are currently up to 10 other cities reviewing participation in OCPA.
CCE Background
CCEs are a mechanism authorized in California in 2002 by Assembly Bill 117, whereby local
electrical service customers are provided with options when it comes to determining from where they
purchase their power. Under the CCE set-up, customers can continue to procure their electrical
power through their current utility provider (in the case of Huntington Beach, that would be Southern
California Edison), or they can opt to have a local municipal government (or a coalition of local
governments) procure electrical power on their behalf.
Typically, CCEs are established with larger environmental or social goals in mind, such as increasing
the share of power procured from renewable sources. In addition, CCEs have been shown to
provide slight cost savings (around 1-2% decrease) over traditional investor-owned utility operations.
Of note, establishing a CCE does not mean completely severing ties with the investor-owned utility,
given that the utility agency still owns and manages the distribution lines that transmit electrical
power to homes and businesses. Further, the utility company still meters each customer's power
usage, and continues to send customers their electrical bill. Under the CCE model, what changes is
the entity which purchases electricity on behalf of the customer; rather than the utility company
performing that role, the responsibility is transferred to the newly-formed local entity.
The Orange County Power Authority
The City of Irvine led an effort that in December 2020 to create a regional CCE Joint Power Authority
named the Orange County Power Authority (OCPA). Currently, the OCPA consists of five (5)
City of Huntington Beach Page 3 of 6 Printed on 1/27/2021
power Legistar-228
File #: 21-085 MEETING DATE: 2/1/2021
founding member agencies; Buena Park, Fullerton, Irvine, Lake Forest, and Huntington Beach.
Additionally, currently there are up to 10 other Orange County cities that are considering joining the
OCPA. Of note, the original five members of OCPA, which includes Huntington Beach, are Founding
Party Members and automatically placed on the JPA's Executive Committee. Any other agency that
joins will be considered Additional Party member.
Given the uncertain nature of which agencies are looking to join the JPA, it is difficult to model
precise fiscal data for the proposed OCPA entity. However, Irvine has commissioned a detailed fiscal
analysis to assess various possible scenario through a 10-year pro forma document, a copy of which
is included as an attachment to this report. Per that assessment, the proposed OCPA was identified
as being financially viable, with the following key summary findings:
OCPA would be able to repay the City of Irvine's start-up and working capital loans,-and build
up proper financial reserves, during the first 5-7 years of operation.
After initial debt service costs are repaid, it is estimated that a significant amount of net income
will be available to the OCPA for use towards customer program or additional electrical rate
discounts.
OCPA Financial and Operational Analysis
The City Council directed staff to provide a financial analysis of the OCPA and present to the City
Council prior to the JPA no-risk opt out deadline. At the City's request, MRW & Associates (MRW)
completed an independent analysis of OCPA's financial viability, reviewed the OCPA Implementation
Plan, and provide an analysis of risks and benefits if of remaining in the OCPA. MRW's report found
that OCPA provides a financially viable option for the City to participate in a CCE with lower risk than
establishing a stand-alone CCE with the following key findings:
Financial Analysis
The MRW independent analysis performed found the OCPA program is financially feasible,
confirming that the OCPA's projected margin between the OCPA operating costs to provide power
is projected lower than the SCE energy generation rate. This means OCPA will be able to provide
energy wither at a lower rate or competitive with SCE. The tightest margins will occur during the
first few years of operation and will increase over time. The MRW model projects the margin
between OCPA power costs and SCE power costs will start near 1 cent/Kwh, and will increase to
over 3.0 cents/kwh over the next 10 years.
MRW states that a CCE is feasible, but is not risk-free. OCPA will be participating in a competitive
power market and subject to evolving state requirements and regulations. While an OCPA rate
discount in the long run should be achievable, market prices and SCE rate volatility could
combine to, in some isolated years, occasionally prevent the CCA from offering lower rates than
SCE.
Implementation Plan
MRW found that the OCPA Implementation plan uses assumptions that are generally sound,
confirming that the underlying customer phase-in, assumed power prices, operating costs, and
City of Huntington Beach Page 4 of 6 Printed on 1/27/2021
power LegistarW229
File #: 21-085 MEETING DATE: 2/1/2021
CCA revenues are all reasonable or conservative. MRW stated that they feel the amount of
collateral provided by Irvine is lower than what may be required when OCPA secures the
financing.
Opt- Out Risk
Customers may choose to opt-out of a CCA service before, during, or even after a CCE is formed.
Most recent CCEs launched have only experienced very modest opt-out rates of around 2-3%.
MRW modeled a high opt-out rate of 30%, and even at that level, the CCE remained financially
viable.
Governance Model Options
The MRW evaluation found that joining the a JPA such as the OCPA would provide benefits from
increased negotiation and buying power for power purchases, access to better financing terms for
borrowing, and operation efficiencies gained by combining management and operating functions
such as billing and accounting. The tradeoff to the benefits of joining a JPA are that decision
making will be allocated amongst the participating parties as opposed to a single agency entity.
A benefit to the OCPA JPA, participating agencies are not required to make any financial
contribution. Rather, the City of Irvine has agreed through the JPA agreement to cover all initial
start-up costs associate with establishing the new OCPA entity as well as cash collateral up to $5
million for power purchase financing. If the City chose to form a stand-alone CCE enterprise they
would be required to fund the start-up capital and financial guarantee. By participating with OCPA,
these financial burdens are being met by Irvine and not required of Huntington Beach.
Greenhouse Gas (GHG)
In order for OCPA to achieve GHG saving, the CCE will be required to acquire energy above the
state renewable requirements. This would include purchasing energy from hydroelectric facilities
which is carbon-free but do not qualify as "renewable" under state law) or increase the renewable
content of its electricity supply above that required by the state.
The MRW independent analysis confirms the OCPA studies and implementation plan is generally
sound and that maintaining membership is viable option for the City of Huntington Beach should the
Council choose to participate in a CCE. Additionally, maintaining membership in OCPA, will provide
the additional benefits of no implementation costs, reduced financial risk and reduced administrative
and ongoing management costs.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Enhance and maintain high quality City services
Attachment(s):
1. Community Choice Energy for the City of Huntington Beach and Review of Orange County
Power Authority
City of Huntington Beach Page 5 of 6 Printed on 1/27/2021
powerE6Q4 LegistarTM230
File #: 21-085 MEETING DATE: 2/1/2021
2. OCPA Implementation Plan
3. Orange County Power Authority Joint Powers Agreement
City of Huntington Beach Page 6 of 6 Printed on 1/27/2021
power LegistarT"'231
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-012 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Michael E. Gates, City Attorney
VIA:Michael E. Gates, City Attorney
PREPARED BY:Michael J. Vigliotta, Chief Assistant City Attorney
Subject:
Approve for Introduction Ordinance No. 4276 Amending Chapter 2.07 of the HBMC Relating to
Campaign Reform
Statement of Issue:
At the December 20, 2022 Council meeting, the City Attorney was directed by City Council to return
with an Ordinance Amending Chapter 2.07 of the Huntington Beach Municipal Code regarding
Campaign Reform.
Financial Impact:
N/A
Recommended Action:
Approve for Introduction Ordinance No. 4276,”An Ordinance of the City of Huntington Beach
Amending Chapter 2.07 of the Huntington Beach Municipal Code Relating to Campaign Reform.”
Alternative Action(s):
Do not Approve for Introduction Ordinance No. 4276 Amending Chapter 2.07 of the HBMC relating to
Campaign Reform
Analysis:
City Council directed the City Attorney to return to the next Council Meeting with an amendment to
the City’s Municipal Code to raise the contribution limit to match or track that of the limits for
California’s State/Assembly candidates.
Environmental Status:
N/A
Strategic Plan Goal:
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™232
File #:23-012 MEETING DATE:1/17/2023
Non Applicable - Administrative Item
Attachment(s):
1. Ordinance No. 4276
2. Legislative Draft
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™233
234
235
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-017 MEETING DATE:1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Michael E. Gates, City Attorney
VIA:Michael E. Gates, City Attorney
PREPARED BY:Michael J. Vigliotta, Chief Assistant City Attorney
Subject:
Approve for Introduction Ordinance No. 4277 Amending Chapter 1.18 of the Huntington Beach
Municipal Code Relating to Anonymous Complaints
Statement of Issue:
At the December 20, 2022 Council meeting, the City Attorney was directed by City Council to return
with an Ordinance Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to
Anonymous Complaints.
Financial Impact:
N/A
Recommended Action:
Approve for Introduction Ordinance No. 4277, “An Ordinance of the City of Huntington Beach
Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to Anonymous
Complaints.”
Alternative Action(s):
Do not Approve for Introduction Ordinance 4277 Amending Chapter 1.18 relating to Anonymous
Complaints
Analysis:
City Council directed the City Attorney to return to the next Council meeting with an amendment that
bans anonymous complaints by individuals to Code Enforcement about alleged business violations.
Environmental Status:
N/A
Strategic Plan Goal:
City of Huntington Beach Printed on 1/11/2023Page 1 of 2
powered by Legistar™236
File #:23-017 MEETING DATE:1/17/2023
Non Applicable - Administrative Item
Attachment(s):
1. Ordinance No. 4277
City of Huntington Beach Printed on 1/11/2023Page 2 of 2
powered by Legistar™237
238
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-038 MEETING DATE:1/17/2023
Subject:
Submitted by Mayor Strickland - Develop a proposal for a Public Memorial honoring Don
Andrews McAllister
Recommended Action:
Direct staff to work with the Community and Library Services Commission and leadership of the
Greater Huntington Beach Interfaith Council to develop a proposal for a public memorial honoring
Don MacAllister on Tower Zero. Return to City Council within 90 days to present the proposal for
consideration.
Attachments:
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™239
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEM REPORT
TO: The Honorable Mayor and City Council
FROM: Mayor Tony Strickland
DATE: January 17, 2023
SUBJECT: DEVELOP A PROPOSAL FOR A PUBLIC MEMORIAL HONORING DON ANDREWS
MACALLISTER
On December 2, 2022, Huntington Beach lost an iconic pillar of our history and community. Don
Andrews MacAllister was known to many as “The Mayor” and “The Ambassador of Huntington
Beach.” Among many other local community groups and organizations, he was greatly known for
his significant contributions to our surfing community.
In addition to serving on City Council from 1978 through 1994, and as mayor in 1979 and 1983,
Don MacAllister embraced the surfing culture and committed himself to the support and
promotion of Surf City USA on a local, national and international level. He was instrumental in
planning the world’s largest surfboard that broke a world record in 2015. Don was also a founding
member of the Surfing Walk of Fame and participated on the Board of Directors for 25 years, and
he passionately served throughout the years on the International Surfing Museum’s Board of
Directors.
In an effort to acknowledge Don’s dedication and contributions to this community, I wish to
recommend a public memorial to be established at the Huntington Beach Pier in his honor. I
believe it would be most appropriate to engage the Community and Library Services Commission
and our partners at the Greater Huntington Beach Interfaith Council, who have expressed strong
interest in supporting this endeavor, as with other memorials in the past. It is suggested a bronze
plaque be installed at Tower Zero. This location is also the site of memorial plaques for Father
Christian Mondor, Pastor Blaine “Sumo” Sato and Rick “Rockin’ Fig” Fignetti, all beloved members
of the community who have made a tremendous impact throughout Surf CIty.
RECOMMENDED ACTION
Direct staff to work with the Community and Library Services Commission and leadership of the
Greater Huntington Beach Interfaith Council to develop a proposal for a public memorial honoring
Don MacAllister on Tower Zero. Return to City Council within 90 days to present the proposal for
consideration.
240
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-049 MEETING DATE:1/17/2023
Subject:
Submitted by Mayor Pro Tem Van Der Mark - Request to End Expanded Outdoor Dining and
Retail on Main Street and other nearby areas in Downtown
Recommended Action:
Direct the City Manager to work with staff to give the downtown businesses on Main St., who are
occupying public areas with outdoor dining and retail, 30-days’ notice to remove all expanded outdoor
dining and to return Main St. to its pre-COVID-19 state. This reversal of the outdoor dining and retail
expansions by small business will remain until the City Council makes a decision about a long-term
revitalization plan. Additionally, direct the City Manager to require tenants who have expanded on
public rights-of-way nearby Main Street as well as on private property to scale back to approved patio
areas until they are permanently permitted for expansion. Lastly, direct the City Manager to reinstitute
parking meters to their pre-Covid state on Main Street as well. We anticipate that this restoring of
Main St., downtown to its pre-COVID-19 state will require support from Community Development,
Community and Library Services, Police Department, and Public Works.
Attachment(s):
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™241
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GRACEY VAN DER MARK, MAYOR PRO TEM
DATE: JANUARY 17, 2023
SUBJECT: REQUEST TO END EXPANDED OUTDOOR DINING AND RETAIL ON MAIN STREET
AND OTHER NEARBY AREAS IN DOWNTOWN
During the COVID-19 pandemic, and in the interest of accommodating small businesses and the
public during the COVID-19 shutdown throughout the City, the City Council allowed restaurants
on Main St. and other nearby areas to expand into outdoor areas such as public rights-of-way.
This expansion included shutting down and completely cutting off the second block of Main St.
to vehicular traffic, in favor of businesses. Additionally, some tenants expanded onto private
property beyond approvals or permits.
This expansion served two purposes: to assist small business in continuing revenue generation
during the pandemic, but also to allow safe outdoor healthy dining and retail shopping to
reduce the spread of COVID-19. However, we are in 2023; the COVID-19 pandemic is over; the
downtown small businesses are still occupying the same expanded outdoor dining and retail
areas on public property; and the street on the second block of Main St. remains closed. There
are efforts to pursue plans to revitalize Main St. in downtown. But the current outdoor dining
and retail expansion, including the second block closure, is not warranted any longer, brought
with it a lot of avoidable blight, caused an increase in transient occupation, and created an
increase in health and safety concerns.
RECOMMENDED ACTION
Direct the City Manager to work with staff to give the downtown businesses on Main St., who
are occupying public areas with outdoor dining and retail, 30-days’ notice to remove all
expanded outdoor dining and to return Main St. to its pre-COVID-19 state. This reversal of the
outdoor dining and retail expansions by small business will remain until the City Council makes
a decision about a long-term revitalization plan. Additionally, direct the City Manager to
require tenants who have expanded on public rights-of-way nearby Main Street as well as on
private property to scale back to approved patio areas until they are permanently permitted for
expansion. Lastly, direct the City Manager to reinstitute parking meters to their pre-Covid state
on Main Street as well. We anticipate that this restoring of Main St., downtown to its pre-
COVID-19 state will require support from Community Development, Community and Library
Services, Police Department, and Public Works.
242
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-051 MEETING DATE:1/17/2023
Subject:
Submitted by Mayor Pro Tem Van Der Mark - Request to Implement a Managed Hiring Process
for Vacant City Staff Positions (with limited exceptions)
Recommended Action:
Direct the City Manager to take necessary measures to develop and implement a “managed hiring”
process for City staff position vacancies that results in only necessary hiring for public safety
(including Police and Fire Departments), building inspection and code enforcement, legal services
(City Attorney's Office), infrastructure maintenance and operation, essential support services,
meeting Charter and Municipal Code requirements, filling interim/permanent Department Head
vacancies, etc.
This “managed hiring” process is meant to be temporary and is designed to allow the City Manager to
prepare and present a report for City Council at its regular meeting on February 21, 2023, about the
state of the City’s budget and financial health, as well as staffing levels, vacancies, the costs of filling
vacancies, and any other aspect of citywide reorganization or planned increase in fiscal responsibility
and economic efficiency.
Attachment(s):
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™243
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GRACEY VAN DER MARK, MAYOR PRO TEM
DATE: JANUARY 17, 2023
SUBJECT: REQUEST TO IMPLEMENT A MANAGED HIRING PROCESS FOR VACANT CITY
STAFF POSITIONS (WITH LIMITED EXCEPTIONS)
The newly formed City Council needs to get up to speed on the fiscal health of the City, which
includes gaining a clear understanding of the City's staffing levels, their associated costs, and
financial impacts. To that end, the City should implement a “managed hiring” for current
vacant positions until the City Council gets a comprehensive education on what staffing is
necessary. There is a sincere concern about the financial health of the City after the past
couple of years of high spending by the previous City Council, the current deepening recession,
recent CalPERS return on investment and related Unfunded Accrued Liability, and
worsening economic conditions.
And as the budget is being prepared for the upcoming fiscal year, the newly formed City Council
should be afforded this opportunity to make informed decisions about staffing and the impacts
to the budget prior to the adoption of the FY 2023-24 budget by Council in June.
RECOMMENDED ACTION
Direct the City Manager to take necessary measures to develop and implement a “managed
hiring” process for City staff position vacancies that results in only necessary hiring for public
safety (including Police and Fire Departments), building inspection and code enforcement, legal
services (City Attorney's Office), infrastructure maintenance and operation, essential support
services, meeting Charter and Municipal Code requirements, filling interim/permanent
Department Head vacancies, etc.
This “managed hiring” process is meant to be temporary and is designed to allow the City
Manager to prepare and present a report for City Council at its regular meeting on February 21,
2023, about the state of the City’s budget and financial health, as well as staffing levels,
vacancies, the costs of filling vacancies, and any other aspect of citywide reorganization or
planned increase in fiscal responsibility and economic efficiency.
244
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-029 MEETING DATE:1/17/2023
Subject:
Submitted by Councilmember McKeon - Request to Repeal Ordinance No. 3907 Related to the
City Treasurer’s Role
Recommended Action:
Direct the City Attorney and the City Manager, in collaboration with the City Treasurer, to return to
City Council at a regular meeting in February 2023 with the necessary actions to reverse Ordinance
3907 and restore the elected City Treasurer’s duties, in full, to those provided in Section 311 of the
City Charter.
Attachment(s):
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™245
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CASEY MCKEON, CITY COUNCILMEMBER
DATE: JANUARY 17, 2023
SUBJECT: REQUEST TO REPEAL ORDINANCE 3907 RELATED TO THE CITY TREASURER’S ROLE
The elected City Treasurer is currently operating in a part -time position with limited
responsibilities. Those responsibilities were reduced by City Council during the 2010-2011
timeframe and shifted to the appointed Finance Director (now titled Chief Financial
Officer). However, those "shifts" were in violation of some parts of Section 311 of the City
Charter.
The City Treasurer shall have the power and shall be required to:
(a) Receive on behalf of the City all taxes, assessments, license fees and other revenues of
the City, or for the collection of which the City is responsible, and receive all taxes or other
money receivable by the City from the County, State or Federal governments, or from any court,
or from any office, department or agency of the City.
(b) Have and keep custody of all public funds belonging to or under control of the City or
any office, department or agency of the City government and deposit or cause to be deposited
all funds coming into their hands in such depository as may be designated by resolution of the
City Council, or, if no such resolution be adopted, then in such depository designated in writing
by the City Manager, and in compliance with all of the provisions of the State Constitution and
laws of the State governing the handling, depositing and securing of public funds.
(c) Pay out moneys only on proper orders or warrants in the manner provided for in this
Charter.
(d) Prepare and submit to the Director of Finance monthly written reports of all receipts,
disbursements and fund balances, and shall file copies of such reports with the City Manager
and City Council.
(e) Perform such other duties consistent with this Charter as may be required by ordinance
or resolution of the City Council
(f) Assist and cooperate with the City Manager consistent with Section 403 of the City
Charter.
From 2010-2011, the City Council adopted and updated Ordinance 3907 (amending HBMC
Section 2.15.030) assigning some of these Charter responsibilities to the Finance Director. It is
important that the City Council and other City leadership respect the Charter as written as the
voice of the people and the will of the voters. There is wisdom in a divided government with
independently elected officials who are appointed by the people (i.e., to work for the people
246
and to account to the people without any fear of losing his or her job). With the importance of
the City being stewards of taxpayer moneys, it is important that this City Council reverse the
former City Council's actions of 2010-2011 and restore the elected City Treasurer's duties, in
full, to those provided in Section 311 of the City Charter.
RECOMMENDED ACTION
Direct the City Attorney and the City Manager, in collaboration with the City Treasurer, to return
to City Council at a regular meeting in February 2023 with the necessary actions to reverse
Ordinance 3907 and restore the elected City Treasurer's duties, in full, to those provided in
Section 311 of the City Charter.
247
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-043 MEETING DATE:1/17/2023
Subject:
Submitted by Councilmember McKeon - Request to Update and Develop Objective Standards
for Development within the City
Recommended Action:
Direct the City Manager to retain the required consultant(s) to work with Community Development
Department, Fire Department, Public Works Department and the City Attorney's Office to update the
Municipal Code including the Zoning, building and fire codes to reflect improved objective standards
for development, including removing any references to "alternative means and methods" from the fire
code with respect to multifamily development and, to return to City Council by end of March with
proposals for improved objective development standards.
Attachment:
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™248
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CASEY MCKEON, CITY COUNCILMEMBER
DATE: JANUARY 17, 2023
SUBJECT: REQUEST TO UPDATE AND DEVELOP OBJECTIVE STANDARDS FOR
DEVELOPMENT WITHIN THE CITY
The State's recent housing laws (beginning in 2017 and through present) represent an overly
ambitious and unjustified effort to increase housing - including in already-developed cities like
Huntington Beach.
Such cities that are nearly built out, like Huntington Beach, have for many decades been
carefully planned, zoned, and developed with extensive careful considerations for the
following: infrastructure for roadways, storm systems, waste management systems; adequate
water supplies to homes and businesses; public safety, fire response and access to homes and
businesses, police response to homes and businesses; structure and aesthetic compatibility;
safety and security of churches and schools; preservation of open space, wetlands, beaches,
and parks; and so much more. The State's unjustified housing proliferation mandates through
housing laws, especially since 2017, are a direct threat to the health, safety, and well-being of
cities and the City's landscape and precious natural resources.
In fact, the City knows through the fire code expert and traffic expert retained by the City in
defending one of its housing lawsuits, that both experts would not have recommended or
supported the Elan project at Beach and Ellis.
To that end, the City of Huntington Beach, in its effort to continue to protect the citizens, their
private property, safe access to public property, and the City's natural resources, must update
and create objective development standards in its zoning and building code. The City must also
update its specific plan areas including fire code and traffic management designed to protect
the environment and protect the health and safety of the community. This update should
include removing any subjective standards from the Municipal Code with respect to multifamily
developments like "alternative means and methods" in the City's fire code. As an example, it
seems logical that objective development standards should not allow multi-story residential
buildings to occupy nearly every foot of the (newly-developed) property, but then require the
use of neighboring private or public properties to provide large fire truck ladder access to that
newly-developed property. The City should create a new zoning code section that sets forth
the objective development standards (like Section 237.12 of the current zoning code) ensuring
249
developments uphold health and safety standards and can be evaluated based on well-defined
objective criteria.
RECOMMENDED ACTION
Direct the City Manager to retain the required consultant(s) to work with Community
Development Department, Fire Department, Public Works Department and the City Attorney's
Office to update the Municipal Code including the Zoning, building and fire codes to reflect
improved objective standards for development, including removing any references to
"alternative means and methods" from the fire code with respect to multifamily development
and, to return to City Council by end of March with proposals for improved objective
development standards.
250
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-044 MEETING DATE:1/17/2023
Subject:
Submitted by Councilmember Burns - City Owned Oil Well Operation and Production
Recommended Action:
Direct the City Manager to return to the City Council within 60 days with a report on the number of
City owned wells, locations, historical production and capacity, and revenue from the sale of oil. The
wells are aging, require ongoing maintenance when operational, and there will be costs to become
operational. A full conditions assessment, cost benefit analysis, and plan to resume operations
should be included in the report.
Attachment(s):
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™251
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PAT BURNS, CITY COUNCILMEMBER
DATE: JANUARY 17, 2023
SUBJECT: CITY OWNED OIL WELL OPERATION & PRODUCTION
The City has owned and operated three oil wells on Civic Center property generating revenue. In recent
years, City leadership has investigated oil well abandonment, foregoing income from oil sales. The City
should evaluate resuming operations and income generation.
RECOMMENDED ACTION
Direct the City Manager to return to the City Council within 60 days with a report on the number of City
owned wells, locations, historical production and capacity, and revenue from the sale of oil. The wells are
aging, require ongoing maintenance when operational, and there will be costs to become operational. A
full conditions assessment, cost benefit analysis, and plan to resume operations should be included in the
report.
252
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-045 MEETING DATE:1/17/2023
Subject:
Submitted by Councilmember Burns - Appointments to Boards and Commissions
Recommended Action:
Any Councilmember with more than one appointee to a Board or Commission will need to select a
single appointee moving forward. Anyone Board Member or Commissioner who is not selected by the
Council Member, will be excused. This is intended to provide a more efficient Board and Commission
to operate as the Commissions are designed.
Direct the City Manager to facilitate the adjusting of Boards and Commissions such that those with
direct Councilmember appointments be reduced or limited to a 7-member Board or Commission -
one appointee for each Councilmember and no more. If any Resolutions or other Council action is
required to make this modification, return to Council at the next regular meeting with whatever
approvals are necessary from Council.
Attachment:
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™253
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PAT BURNS, CITY COUNCILMEMBER
DATE: JANUARY 17, 2023
SUBJECT: APPOINTMENTS TO BOARDS AND COMMISSIONS
The City has a number of Boards and Commissions that serve as advisory bodies to the City Council. City
Council members make appointments to these Boards and Commissions. However, there have been
instances in recent years where certain Boards and Commissions have more than one appointee from a
Councilmember.
RECOMMENDED ACTION
Any Councilmember with more than one appointee to a Board or Commission will need to select a single
appointee moving forward. Anyone Board Member or Commissioner who is not selected by the Council
Member, will be excused. This is intended to provide a more efficient Board and Commission to operate
as the Commissions are designed.
Direct the City Manager to facilitate the adjusting of Boards and Commissions such that those with direct
Councilmember appointments be reduced or limited to a 7-member Board or Commission - one appointee
for each Councilmember and no more. If any Resolutions or other Council action is required to make this
modification, return to Council at the next regular meeting with whatever approvals are necessary from
Council.
254
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:23-046 MEETING DATE:1/17/2023
Subject:
Submitted by Councilmember Burns - Finance Commission
Recommended Action:
Direct the City Manager to immediately facilitate monthly Finance Commission meetings and direct
the City Manager to accommodate and facilitate the Finance Commission to undertake reviews the
Finance Commission, in its citizen-driven oversight, deems necessary. The Finance Commission will
review, analyze, and consider the accountability, honesty, integrity, fiscal sustainability, community
involvement, and openness of the City’s financial obligations. Direct the City Manager to update the
Huntington Beach Municipal Code Section 2.109, Finance Commission, to reflect a monthly meeting
schedule with the modified duties and agenda items.
Attachment(s):
1. Memo
City of Huntington Beach Printed on 1/11/2023Page 1 of 1
powered by Legistar™255
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PAT BURNS, CITY COUNCILMEMBER
DATE: JANUARY 17, 2023
SUBJECT: FINANCE COMMISSION
The Finance Commission is a City Council-created, advisory commission to the City Council. While the City
has a long history of having a Finance Commission, or a similar City finance review board, the City Council
directed the Finance Commission to meet less frequently and to only undertake tasks that the City Council
directed.
The Finance Commission is composed of citizens appointed by Council members. The City's finances
should be carefully reviewed by the public as City leadership's greatest fiduciary responsibility is to be the
best stewards of taxpayer money. Citizen participation and oversight is key to the fiscal health and
responsible governance by the City Council.
RECOMMENDED ACTION
Direct the City Manager to immediately facilitate monthly Finance Commission meetings and direct the
City Manager to accommodate and facilitate the Finance Commission to undertake reviews the Finance
Commission, in its citizen-driven oversight, deems necessary. The Finance Commission will review,
analyze, and consider the accountability, honesty, integrity, fiscal sustainability, community involvement,
and openness of the City’s financial obligations. Direct the City Manager to update the Huntington Beach
Municipal Code Section 2.109, Finance Commission, to reflect a monthly meeting schedule with the
modified duties and agenda items.
256