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2023-02-07 Agenda Packet
IN-PERSON PUBLIC PARTICIPATION: Members of the public are welcome to attend City Council meetings in person. Alternate ways to view meetings live or on-demand include: 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. 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 Regular, and Special Meetings of the Housing Authority and Investment Advisory Board Tuesday, February 7, 2023 3:30 PM Closed Session / No Study Session 6:00 PM Regular Business Meeting Council Chambers 2000 Main Street Huntington Beach, CA 92648 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 ***AGENDA REVISED 2/2/23*** Councilmember Item #34 (23-123) added 1 AGENDA February 7, 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 COUNCILMEMBER 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. Individuals wishing to provide a comment on item(s) may do so in person by filling out a Request to Speak form delivered to the City Clerk. 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. 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. RECESS TO CLOSED SESSION CLOSED SESSION ANNOUNCEMENT(S) 23-1071.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; 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). Page 1 of 12 2 AGENDA February 7, 2023City Council/Public Financing Authority CLOSED SESSION 23-0892.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; Eric Parra, Chief of Police; and Sunny Rief, Assistant Chief Financial Officer. Employee Organization: Police Officers’ Association (POA). 23-0903.CONFERENCE WITH LEGAL COUNSEL-LITIGATION (Gov. Code section 54956.9(d)(4).): Number of matters: One (1) - Confer with City Attorney regarding a request by the City of Costa Mesa to provide Amicus support with regard to 9th Circuit Court of Appeals Decision re Sober Living Homes. 23-1014.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. 23-1055.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Vega (Ruben) v. City of Huntington Beach, et al.; OCSC Case No.: 30-2021-01184181. 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING 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. 22-11176.Mike Michaud of Dance4Joy Ministries and member of the Greater Page 2 of 12 3 AGENDA February 7, 2023City Council/Public Financing Authority 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. Individuals wishing to provide a comment may do so in person by filling out a Request to Speak form delivered to the City Clerk. 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. 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. 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. Page 3 of 12 4 AGENDA February 7, 2023City Council/Public Financing Authority CITY MANAGER'S REPORT 22-6967.Welcome to New OneHB Team Members CITY TREASURER'S REPORT 23-0368.Joint meeting of the Investment Advisory Board (IAB) and City Council - Investment Advisory Board Annual Report Roll Call: Heymann, Attardo, Dowds, Ellett, Erskine, Kelly, Pitcher Receive and File the Investment Advisory Board’s Annual Report. Recommended Action: 23-1119.Receive and File the City Treasurer’s December 2022 Quarterly Investment Summary Report Receive and File the City Treasurer’s Quarterly Investment Report for December 2022, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Recommended Action: CITY CLERK'S REPORT 23-10810.City Archivist Kathie Schey to announce receipt of a digitization grant award from California Revealed, an initiative of the California State Library CONSENT CALENDAR Office of City Attorney 23-07611.Adopt Ordinance No. 4276 Amending Chapter 2.07 of the HBMC Relating to Campaign Reform - Approved for Introduction January 17, 2023 - Vote: 4-3 (Kalmick, Moser, Bolton - No) Adopt 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: 23-07712.Adopt Ordinance No. 4277 Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to Anonymous Complaints - Approved for Introduction January 17, 2023 - Vote: 4-3 (Kalmick, Moser, Bolton - No) Page 4 of 12 5 AGENDA February 7, 2023City Council/Public Financing Authority Adopt 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: Office of City Clerk 23-07813.Approve and Adopt Minutes Approve and adopt the City Council/Public Financing Authority regular meeting and the Successor Agency special meeting minutes of January 17, 2023. Recommended Action: Office of City Manager 23-11514.Adopt Resolution No. 2023- 07 appointing Theresa St. Peter as Interim Director of Human Resources and approving the Employment Agreement A) Adopt Resolution No. 2023-07 , “ A Resolution of the City Council of the City of Huntington Beach Appointing Theresa St . Peter as Interim Director of Human Resources”; and, B) Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Theresa St . Peter.” Recommended Action: Community Development Department 23-01415.Bonanni Development Company IV, LLC Affordable Housing Agreement for the development of 35 ownership units at 19070 Holly Lane A) Approve the Affordable Housing Agreement by and between the City and Bonanni Development Company, LLC for the development of 35 ownership units at 19070 Holly Lane; and, B) Authorize the City Manager or their designee to implement and execute the Affordable Housing Agreement for the Project, including all necessary related documents; and, C) Authorize the City Manager to execute an amendment to the Affordable Housing Agreement, as prepared by the City Attorney, should the Developer upon completion of the Project decide to rent instead of sell the townhomes due to market conditions; and, Recommended Action: Page 5 of 12 6 AGENDA February 7, 2023City Council/Public Financing Authority D) Authorize the Housing Authority Executive Director or their designee to execute all necessary implementing agreements and related documents. Police Department 23-07416.Approve and accept the California Office of Emergency Services (Cal OES) Violence Against Women Act Grant (LE22066860); authorize the Chief of Police to execute documents; approve appropriations; amend the Professional Services Listing to include provided domestic violence services; and contract Amendment No. 2 with Waymakers, in the amount of $116,032, for continued management of the Victim and Witness Assistance Services Program A) Accept the grant between the State of California, Governor’s Office of Emergency Services (Cal OES) and the City of Huntington Beach; and, B) Assign authority to the Chief of Police as the official to execute and sign for the award and to approve amendments and extensions; and, C) Approve the appropriation and expenditure of $203,143, which is fully reimbursed by the grant from Cal OES. The remaining $67,715 will be funded from existing appropriations in the Police Department’s budget; and, D) Amend the Professional Services Listing to include provided domestic violence services; and, E) Approve and authorize “Amendment No. 2” to Agreement Between the City of Huntington Beach and Waymakers for Victim and Witness Assistance Services . Recommended Action: Public Works Department 22-92517.Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for Sanitary Sewer System Manhole SmartCovers Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for the servicing of SmartCovers. Recommended Action: 22-92618.Approve Sole Source Procurement Request for Aclara for service and maintenance on Automated Meter Infrastructure (AMI) equipment. Page 6 of 12 7 AGENDA February 7, 2023City Council/Public Financing Authority Approve the Sole Source Procurement Request with Aclara for service and maintenance on AMI equipment. Recommended Action: 22-112619.Approve and authorize execution of a three-year Professional Services Agreement with Sierra Analytical Labs Inc. for Water Quality Analysis and Sampling Services in the amount of $360,000 Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract between the City of Huntington Beach and Sierra Analytical Labs, Inc. for Water Quality Analysis and Sampling Services.” Recommended Action: 23-04820.Accept bid and authorize execution of a construction contract with MBC Enterprises, Inc. in the amount $482,897.59 for the Glen Mar Frontage Road Improvements Project, CC-1688 A) Accept the lowest responsive and responsible bid submitted by MBC Enterprises, Inc. in the amount of $438,997.81; and, B) Authorize the Mayor and City Clerk to execute a construction contract in the form approved by the City Attorney. Recommended Action: 23-06121.Grant of Easement to Southern California Gas Company for new gas utility line extension at 6900 Brunswick Drive, a location known as North Greer Park Parcel A) Approve and authorize the Mayor and City Clerk to execute the Grant of Easement between the City of Huntington Beach and Southern California Gas Company; and , B) Authorize the City Clerk to record the Grant of Easement with the Orange County Recorder. Recommended Action: 23-08822.Approve and authorize execution of four (4) Professional Services Contracts for On-Call Construction Management and Engineering Services with Ardurra Group, Inc., Berg & Associates, Inc., Dudek, and Psomas A) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Ardurra Group, Inc. for On-Call Construction Management and Engineering Services;” and, Recommended Action: Page 7 of 12 8 AGENDA February 7, 2023City Council/Public Financing Authority B) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Berg & Associates, Inc. for On-Call Construction Management and Engineering Services;” and, C) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Dudek for On-Call Construction Management and Engineering Services;” and, D) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Psomas for On-Call Construction Management and Engineering Services.” 23-09523.Approve and authorize execution of three (3) Professional Services Contracts for On-Call Materials Testing and Engineering Services with AESCO, Inc., Leighton Consulting, Inc., and Ninyo & Moore Geotechnical & Environmental Sciences Consultants A) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and AESCO, Inc. for On-Call Materials Testing and Engineering Services;” and, B) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and Leighton Consulting, Inc. for On-Call Materials Testing and Engineering Services;” and, C) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and Ninyo & Moore Geotechnical & Environmental Sciences Consultants for On-Call Materials Testing and Engineering Services.” Recommended Action: PUBLIC HEARING For the benefit of the public, prior to a public hearing item, each member of the City Council will disclose any ex parte communications they may have had pertaining to the item. In simple terms, public hearings are quasi-judicial proceedings and the information used by the City Council to make its decisions should be limited to that which is obtained during the public hearing. Ex parte communications, then, means any information obtained outside of a public hearing. In such public hearing proceedings, the City Council must uphold constitutional and statutory due process rights of present and non-present parties by disclosing ex parte communications. Ex parte communications include oral and written information, as well as visual or auditory information obtained during a site visit. Individuals wishing to provide a comment on an item scheduled for Public Hearing may do so in person by filling out a Request to Speak form delivered to the City Clerk. All speakers are Page 8 of 12 9 AGENDA February 7, 2023City Council/Public Financing Authority 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. 23-02724.Adopt Resolution No. 2023-02 to approve Zoning Text Amendment (ZTA) No. 22-004 regarding Medical Services in the Beach and Edinger Corridors Specific Plan (BECSP) PLANNING COMMISSION AND STAFF RECOMMENDATION: A) Find that Zoning Text Amendment No. 22-004 is within the scope of the BECSP Program Environmental Impact Report No. 08-008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Sections 15162 and 15163, no subsequent or supplement to the EIR need be prepared for this ZTA and no further environmental review or documentation is required (Attachment No. 1); and, B) Approve Zoning Text Amendment No. 22-004 with findings (Attachment No. 1) and adopt Resolution No. 2023-02, “A Resolution of the City Council of the City of Huntington Beach Approving an Amendment to the Beach and Edinger Corridors Specific Plan (SP14) (Zoning Text Amendment No. 22-004)” (Attachment No. 2). Recommended Action: ADMINISTRATIVE ITEMS 23-09725.Approve and authorize Amendment No. 1 to the Professional Services Contract with RDG Planning & Design Art Studio for the Design, Fabrication and Installation of the Public Art Work to include a phased acceptance of liability, to increase the contract compensation by $35,000, and to appropriate $35,000 from the Public Arts in Parks Fund 236 A) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and RDG Art Studio for the Design, Fabrication and Installation of a Public Art Work for Central Park” to approve a phased acceptance of liability of the structures during the installation process and to increase the contract compensation by a not-to-exceed amount of $35,000; and, B) Authorize the appropriation of $35,000 from the Public Art in Parks Fund 236 to account 23645001.82900. Recommended Action: 23-05026.Report on crime statistics involving Huntington Beach businesses and recommendations to enhance efforts to address and reduce business-related crimes Page 9 of 12 10 AGENDA February 7, 2023City Council/Public Financing Authority A) Receive and file this report; and B) Approve the proposed enforcement plan for Fiscal Year 2022/23 for additional overtime for proactive patrols and funding for five (5) public safety cameras, including appropriation from the General Fund to the Police Department’s FY 2022-2023 Personnel and Operating Budget. Recommended Action: ORDINANCES FOR INTRODUCTION 23-06627.Approve for Introduction Ordinance No. 4275 to Amend to Huntington Beach Municipal Code Chapter 13.08.070 Relating to Dogs and Other Animals Approve for introduction Ordinance No. 4275, “An Ordinance of the City of Huntington Beach Amending Chapter 13.08 of the Huntington Beach Municipal Code Relating to Dogs and Other Animals.” Recommended Action: 23-07128.Approve for Introduction Ordinance No. 4280 Amending Chapter 2.109 of the Huntington Beach Municipal Code Regarding the Finance Commission Approve for introduction Ordinance No. 4280, “An Ordinance of the City of Huntington Beach Amending Chapter 2.109 to the Huntington Beach Municipal Code Regarding Finance Commission.” Recommended Action: 23-07229.Approve the Introduction of Ordinance Nos. 4279 and 4278 Amending Chapter 2.64 and Chapter 2.111 of the Huntington Beach Municipal Code Regarding the Community and Library Services Commission and the Citizen Infrastructure Advisory Board/Public Works Commission, respectively A) Approve for Introduction Ordinance No.4279, “An Ordinance of the City of Huntington Beach Amending Chapter 2.64.040 to the Huntington Beach Municipal Code Regarding Community and Library Services Commission”; and/or B) Approve for Introduction Ordinance No. 4278 , “An Ordinance of the City of Huntington Beach Amending Chapter 2.111 to the Huntington Beach Municipal Code Regarding Citizen Infrastructure Advisory Board/Public Works Commission.” Recommended Action: COUNCILMEMBER ITEMS Page 10 of 12 11 AGENDA February 7, 2023City Council/Public Financing Authority 23-10930.Submitted by Councilmember Burns - Request to prepare an Ordinance that limits Flag Displays at City Facilities to only the American, POW/MIA, State, City, and as needed, the County Flags Direct the City Manager to work with the City Attorney to prepare an ordinance for introduction at the February 21 Council Meeting that the City only fly or display on City property the American flag, the POW/MIA flag, the State of California flag, the Huntington Beach City flag, and, as needed, the County of Orange flag. If the ordinance is adopted, direct the City Manager to update Administrative Regulation (AR) 705: Citywide Flag Policy, accordingly . Recommended Action: 23-11831.Submitted by Councilmember Burns - SB 9 and SB 10 Impacts on Huntington Beach Request that staff compose, for City Council review, an analysis of SB 9 and SB 10, their impacts in Huntington Beach, and process to exempt the City from SB 9, as the City has opted out of SB10. Direct the City Attorney to take any legal action necessary to challenge SB 9 and SB 10. Recommended Action: 23-11932.Submitted by Councilmember Moser - Request to Reinstate Remote Citizen Participation at Public Meetings I would like to request the City Council to reinstate the remote public participation option during meetings of the City Council and all BCCs, in the spirit of increasing public access, civic discourse, and transparency. If needed, the City Council could reassess the need for remote options periodically, moving forward. Recommended Action: 23-12033.Submitted by Councilmember McKeon - Request to review Group Home Regulations in the City and recommend amendments and improvements as needed Direct the City Manager to work with the City Attorney to return to Council with any recommendations regarding: 1. Possible new ZTA to provide additional protections for disabled occupants requiring at least 9 months’ notice prior to eviction (even after insurance coverage runs out). This kind of a protection for disabled occupants will help prevent their sudden turning out onto the street without a home or place to stay. These protections could also include requiring operators and landlords to relocate the patients/clients back to their original place of Recommended Action: Page 11 of 12 12 AGENDA February 7, 2023City Council/Public Financing Authority origin. 2. Begin investigating complaints of insurance fraud. This may require the City Attorney work with the District Attorney to identify prosecutorial paths for prosecution. 3. Provide City Council a Quarterly basis to give status reports on: list of current complaints regarding illicit Group Home operations harming the disabled, including Group Home locations, nature of complaints, description of complaints, complaints regarding public nuisance activities like loud noise or trash, whether issues are Code Enforcement or whether there is criminal activity; Group Home locations should identify State licensed facilities, sober homes, non-licensed providers, etc. and what efforts have been done that quarter to address the complaints. A full status report. 4. Recommendation on what resources, or assistance, does Code Enforcement need from City Council to step up enforcement, reduce response times, effectively identify problem homes, effectively address the problems of the homes, etc. 23-123**34.Submitted by Councilmember McKeon - Request to Commence a Development Impact Fund (DIF) Study Direct the City Manager to work with the Finance and Community Development Departments to conduct a Request for Proposals/Qualifications process to hire a firm that will commence a DIF study and Nexus Report or other appropriate calculations. Recommended Action: ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, February 21, 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 12 of 12 13 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-107 MEETING DATE:2/7/2023 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; 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 2/1/2023Page 1 of 1 powered by Legistar™14 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-089 MEETING DATE:2/7/2023 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; Eric Parra, Chief of Police; and Sunny Rief, Assistant Chief Financial Officer. Employee Organization: Police Officers’ Association (POA). City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™15 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-090 MEETING DATE:2/7/2023 CONFERENCE WITH LEGAL COUNSEL-LITIGATION (Gov. Code section 54956.9(d)(4).): Number of matters: One (1) - Confer with City Attorney regarding a request by the City of Costa Mesa to provide Amicus support with regard to 9th Circuit Court of Appeals Decision re Sober Living Homes. City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™16 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-101 MEETING DATE:2/7/2023 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. City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™17 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-105 MEETING DATE:2/7/2023 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Vega (Ruben) v. City of Huntington Beach, et al.; OCSC Case No.: 30-2021-01184181. City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™18 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-1117 MEETING DATE:2/7/2023 Mike Michaud of Dance4Joy Ministries and member of the Greater Huntington Beach Interfaith Council City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™19 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-696 MEETING DATE:2/7/2023 Welcome to New OneHB Team Members City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™20 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-036 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Alisa Backstrom, City Treasurer VIA:Alisa Backstrom, City Treasurer PREPARED BY:Alisa Backstrom, City Treasurer Subject: Joint meeting of the Investment Advisory Board (IAB) and City Council - Investment Advisory Board Annual Report Roll Call: Heymann, Attardo, Dowds, Ellett, Erskine, Kelly, Pitcher Statement of Issue: Receive and File the Investment Advisory Board’s Annual Report. Financial Impact: Not Applicable Recommended Action: Receive and File the Investment Advisory Board’s Annual Report. Alternative Action(s): Deny or Critique Investment Advisory Board Annual Report. Analysis: Not Applicable Environmental Status: Not Applicable Strategic Plan Goal: Financial Sustainability, Public Safety or Other Attachment(s): 1. Investment Advisory Board’s Annual Report City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™21 File #:23-036 MEETING DATE:2/7/2023 2. IAB Joint Study Session Presentation 2022 City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™22 CITY OF HUNTINGTON BEACH INVESTMENT ADVISORY BOARD ANNUAL REPORT TO THE CITY COUNCIL FOR: 2022 23 INVESTMENT ADVISORY BOARD (IAB) Establishment of Board The Investment Advisory Board was created to act in an advisory capacity to the City Council and City Treasurer in matters pertaining to all of the City’s investments by the City Council in May of 1995 by Resolution #3284. The Board is governed by the City’s municipal code chapter 2.110 and is subject to the open meeting law (“Brown Act”). Board Membership The Investment Advisory Board shall consist of up to seven members. Each City Council member may appoint one member of the Board to serve the same term as the City Councilmember. For 2022, the members were as follows: Name Council Member Sean Heymann (Chairperson) Dan Kalmick Syndia Attardo Kim Carr Scott Dowds Barbara Delgleize Mark Ellett Erik Peterson Dennis Kelly Natalie Moser Rita Pitcher Mike Posey Monica Erskine Rhonda Bolten Investment Advisory Board: Duties The duties of the IAB as defined in the municipal code include: 1) Preparation of an Annual Report to be submitted to the City Council 2) Review and make recommendations regarding: - The City’s Investment Policy Statement and compliance with this statement - Investment strategies and opportunities - Relevant governmental legislation - Quarterly investment reporting 3) Attend quarterly meetings Investment Advisory Board: Activities The two major activities of the Board consisted of reviewing each quarterly investment report and reviewing the City of Huntington Beach Investment Policy annually, prior to their presentation at a City Council meeting. The meetings of the Board for the period from January 1, 2022 to December 31, 2022 were held via Zoom according to Covid-19 protocol on the following dates: January 20, 2022 April 21, 2022 July 21, 2022 October 20, 2022 24 Due to Covid-19, the Annual Report from 2021 was provided to the City Council on 2/7/22 via email, rather than presenting in person. As required under Huntington Beach Municipal Code 2.110.040(b), the Investment Advisory Board reviewed matters pertaining to the City’s investments as follows: Reviewed the annual Investment Policy Statement. Discussed cash management and the maintenance of continued sufficient liquidity to meet estimated expenditures. Reviewed risk-return analysis as it relates to safety, liquidity and yield. Reviewed and discussed relevant economic activity and policy. Reviewed appropriate state and federal legislation as it may impact the City’s investments, including updates to the California Government Code Section 53601. Reviewed any anticipated exposure to loss through the analysis of liquidity, credit & market value of investments. Reviewed quarterly reports prior to presentation to the City Council. Reviewed quarterly compliance with Investment Policy. No exceptions were identified. Additionally, at the direction of the City Council, the Investment Advisory Board discussed the issue of whether limiting investments in fossil fuels would affect the City portfolio’s investment return. A response was sent to the City Council via email on July 28, 2022. Conclusions Based on the information reviewed by the Investment Advisory Board for 2022, the Board acknowledges that the City Treasurer has maintained compliance with all requirements in the City’s Investment Policy and related governmental regulations, and has managed the City’s investment portfolio in a prudent and suitable manner. 25 26 City of Huntington Beach Investment Advisory Board Governed by Chapter 2.110 of Municipal Code Acts in advisory capacity to City Council and City Treasurer in matters pertaining to the City’s investments Each City Council member appoints one member to serve concurrent term 27 2022 Investment Advisory Board Members: MEMBER NAME APPOINTED BY Sean Heyman Dan Kalmick Syndia Attardo Kim Carr Scott Dowds Barbara Delgleize Mark Ellett Erik Peterson Monica Erskine Ronda Bolton Dennis Kelly Natalie Moser Rita Pitcher Mike Posey 28 2022 Annual Report: Duties included: Review and make recommendations regarding: Investment Policy Statement and compliance Investment strategies and opportunities Relevant governmental legislation Quarterly investment reporting Preparation of Annual Report 29 Investment Advisory Board Conclusions: City Treasurer has managed City funds as a fiduciary with adherence to governmental regulations, and Maintained and followed Investment Policy Statement guidelines and criteria: Safety Liquidity Market Rate of Return 30 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-111 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Alisa Backstrom, City Treasurer VIA:Alisa Backstrom, City Treasurer PREPARED BY:Alisa Backstrom, City Treasurer Subject: Receive and File the City Treasurer’s December 2022 Quarterly Investment Summary Report Statement of Issue: Receive and File the City Treasurer’s Quarterly Investment Report for December 2022, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Receive and File the City Treasurer’s Quarterly Investment Report for December 2022, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or Critique Quarterly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Financial Sustainability, Public Safety or Other Attachment(s): 1. Treasurer’s Quarterly Investment Report for December 2022 2. Treasurer’s PowerPoint Presentation for December 2022 City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™31 City of Huntington Beach Quarterly Investment Report December 2022 Prepared by: Alisa Backstrom, MBA, CCMT, CPFIM City Treasurer Colin Stevens, MPP Treasury Associate 1 32 INVESTMENT PORTFOLIO SUMMARY Currently, funds within this portfolio are invested in the California Asset Management Program “CAMP”, commercial paper, U.S. Treasury securities, Supranationals (International Bank of Reconstruction and Development “IBRD”, Inter-American Development Bank “IADB”), Federal Agency securities and corporate bonds. Only the investment types allowed under California Government Code Section 53601 and the City’s Investment Policy Statement are utilized. Short-term interest rates continued to rise during the fourth quarter of 2022 as the Federal Reserve continued to raise the Federal Funds rate. As interest rates rise, the market price of the securities previously purchased (at lower than the current market rates) goes down. This has resulted in the current market value of the portfolio being lower than the book value, at $308.7 million versus $325.4 million, respectively. These increasing interest rates will allow excess funds to be invested at higher rates resulting in increased interest income in the future. Investment Type $ in 000's Market Value Book Value Federal Agency Issues 137,664$ 147,116$ CA Asset Management Program (CAMP)19,127$ 19,127$ Treasury Securities 81,463$ 85,671$ Medium Term Notes - Supranationals 27,099$ 29,059$ Corporate Bonds 38,469$ 39,568$ Commercial Paper 4,877$ 4,889$ TOTAL 308,699$ 325,430$ AS OF: December 31, 2022 2 33 PORTFOLIO BREAKOUT BY TYPE – BOOK VALUE as % of Total Portfolio The largest holding by security type at month-end was Federal Agency securities at approximately 45% of the total overall portfolio. This was followed by U.S. Treasury securities at approximately 26% of the total portfolio as of December 30. Overnight liquidity has been reduced as higher interest rates have become available in marketable securities. INVESTMENT PORTFOLIO EARNINGS Earnings for the month of December 2022 were $462,460, an increase of approximately 77% from the same month in the prior year, due to the increase in interest rates. Fiscal year to date earnings of $2,232,897 were up approximately 43% from the previous fiscal year. The effective rate of return for December was 1.74%, with a fiscal year-to-date return of 1.44%. The increase in the December rate of 3 34 return over that of the fiscal year-to-date return is a result of the portfolio investing in the higher available rates. The benchmark has increased rapidly with the sharp rise in interest rates, especially on the short end, during 2022. At the end of December, the 12-month moving average of the interpolated 1.5-year U.S. Treasury was 2.84%. The portfolio rate of return will lag behind the benchmark, as it will take time for previously purchased securities to mature and funds reinvested. QUARTERLY PORTFOLIO ACTIVITY As the Federal Reserve continued to raise rates in the latter half of the 2022, funds were moved when possible into higher yielding options. Liquidity funds were moved from LAIF to the California Asset Management Program ("CAMP") account in order to take advantage of the higher yield. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). It also has the highest rating by Standard & Poor’s of AAAm. As of 01/17/23, this fund had a current seven-day yield of 4.48%. In addition to moving funds to CAMP, $5 million in Commercial Paper matured. $8 million in Federal Agencies was purchased, one $5 million Corporate Bond (Bristol-Myers Squibb) was purchased, $5 million in Commercial Paper was purchased, and two U.S. Treasury Securities were purchased for a total of $8 million. Investment Type $ in 000's Purchases/ Deposits Calls/Maturities/ Withdrawals Federal Agency Issues 8,000$ Local Agency Investment Fund (LAIF) *68$ 3,788$ CA Asset Management Program (CAMP)*9,128$ 9,001$ Corporate Bonds 5,000$ Commercial Paper 5,000$ 5,000$ Treasury Securities 8,000$ -$ OC Investment Pool *10$ 17$ TOTAL 35,206$ 17,806$ *Includes Interest Income October 1 to December 30, 2022 4 35 COMPLIANCE SUMMARY INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED % OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS IN COMPLIANCE? Commercial Paper 270 days 25%/10% A1, "A" Rating YES State Obligations- - CA And Others 5 years None/10% "A" Rating YES U.S. Treasury Obligations 5 years None None YES U.S. Government Agency Obligations 5 years None None YES IBRD, IFC, IADB 5 years 10% "AA" Rating YES Corporate Notes 5 years 30%/10% "A" Rating YES Local Agency Investment Fund (LAIF) N/A Up to $75,000,000 None YES Orange County Investment Pool (OCIP) N/A Up to $75,000,000 None YES CA Asset Mgt Program (CAMP) N/A Up to $75,000,000 None YES Maximum Maturities No more than 50% of portfolio maturing over 4 years. YES There were no compliance issues during this period. 5 36 ECONOMIC AND MARKET OVERVIEW The Federal Open Market Committee (FOMC) met in December to discuss the current state of the economy and to examine potential future interest rate adjustments. They concluded that recent indicators point to modest growth in spending and production. In addition to Russia’s war against Ukraine causing tremendous human and economic hardship, inflation remains elevated, reflecting supply and demand imbalances related to the pandemic. Fixed Income / Equity Markets: The yield on the 10-year U.S. Treasury finished the quarter at 3.88%, up from 3.83% at the end of last quarter. The S&P 500 increased by 7.08% while the DJIA increased by 15.39% respectively, over the same period. Employment: Total nonfarm payroll employment rose by 223,000 in December and the unemployment rate remained the same at 3.5 percent. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance. 6 37 Par Value Book Value Book Value % of Port Market Value Book Yield Contribution Days to Maturity Local Govt Inv Pools (LGIP) Commercial Paper U.S. Treasuries Supranational U.S. Agencies Corporates Hold Total $19,127,333.39 $19,127,333.39 5.88%$19,127,333.39 0.253%1 $5,000,000.00 $4,888,750.00 1.50%$4,877,150.00 0.069%180 $86,000,000.00 $85,670,914.27 26.33%$81,462,990.00 0.426%733 $29,000,000.00 $29,059,426.72 8.93%$27,098,880.00 0.100%707 $147,225,000.00 $147,116,243.85 45.21%$137,663,506.50 0.698%747 $39,684,000.00 $39,567,697.55 12.16%$38,469,145.31 0.280%652 $326,036,333.39 $325,430,365.78 100.00%$308,699,005.20 1.825%676 Portfolio Investments 12/31/2022 Date City Treasurer TitleAlisa Backstrom I certify that this report and the corresponding pages attached accurately reflect all portfolio combined investments and conforms with all California state statutes and the Huntington Beach investment policy filed on February 1, 2022. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market values are provided by US Bank via Interactive Data Corp (IDC) Certification Fiscal YTD Transactions Redemptions 0 Purchases 3 Total Activity 3 Period Transactions Redemptions 6 Purchases 9 Total Activity 15 Net Period Earnings $2,232,897.34 Last FY Period Net Earnings $1,559,308.07 Avg Daily Book Balance $309,497,256.99 $1.00 $1.00 Net Effective Annual Return 1.436% Net Period Earnings $462,459.62 Last FY Period Net Earnings $260,935.33 Avg Daily Book Balance $314,957,219.95 $1.00 $1.00 Net Effective Annual Return 1.743% Fiscal YTD Summary (184 Days)Period Earnings Summary (31 Days) __________________________________________________________________________ Portfolio Market Value Accrued Interest Paid at Purchase Interest Receivable Accrued Interest Earned sum2 Total Market Value $308,699,005.20 $56,982.64 $192,500.00 $1,164,929.38 $1.00 $310,113,417.22 Portfolio Book Value Accrued Interest Paid at Purchase sum2 Total Book Value $325,430,365.78 $56,982.64 $2.00 $325,487,348.42 Market Value Book Value Par Value Portfolio Summary Huntington Beach Portfolio: CITY Reporting Date: (FY2023) 12/01/2022 - 12/31/2022 Full Accrual Basis sum2 Total Par Value $1.00 $326,036,333.39 ____________________________________________ The City Portfolio uses a 12 month moving average of the 1.5Yr Treasury for comparison purposes. This period, that rate is equal to: 2.840% 7 38 Accounting ID Pool Description Type Par Value Book Value Market Value Rate % of Portfolio Composite Rating 003 California Asset Management Program LGIP 19,127,333.39 19,127,333.39 19,127,333.39 4.30 5.88%NR CITY Fund Total 19,127,333.39 19,127,333.39 19,127,333.39 5.88% Portfolio: CITYCash By Fund Report City of Huntington Beach Reporting Period: 12/31/2022 8 39 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4374 62479MTW3 MUFGBK 0.000 06/30/2023 (0.49Yr-Disco) 10/05/2022 5,000,000.00 4,888,750.00 4,877,150.00 4.602 0.50 180 1.50% P-1/A-1/F1 Commercial Paper Total 5,000,000.00 4,888,750.00 4,877,150.00 1.50% 4299 912828P79 T 1.500 02/28/2023 (0.16Yr-Fixed)12/05/2019 3,000,000.00 2,999,654.69 2,986,230.00 1.574 0.16 58 0.92% Aaa/AA+/AAA 4352 912828S92 T 1.250 07/31/2023 (0.58Yr-Fixed)01/14/2022 5,000,000.00 5,015,515.81 4,901,550.00 0.711 0.56 211 1.54% Aaa/AA+/AAA 4357 91282CCN9 T 0.125 07/31/2023 (0.58Yr-Fixed)02/02/2022 5,000,000.00 4,975,152.23 4,868,350.00 0.991 0.57 211 1.53% Aaa/AA+/AAA 4354 9128282D1 T 1.375 08/31/2023 (0.66Yr-Fixed)01/21/2022 5,000,000.00 5,015,459.97 4,888,100.00 0.903 0.65 242 1.54% Aaa/AA+/AAA 4364 9128286Z8 T 1.750 06/30/2024 (1.49Yr-Fixed)05/02/2022 7,000,000.00 6,900,966.66 6,707,960.00 2.730 1.45 546 2.12% Aaa/AA+/AAA 4370 912828XX3 T 2.000 06/30/2024 (1.49Yr-Fixed)05/27/2022 5,000,000.00 4,966,544.12 4,808,800.00 2.462 1.45 546 1.53% Aaa/AA+/AAA 4353 912828Y87 T 1.750 07/31/2024 (1.58Yr-Fixed)01/14/2022 5,000,000.00 5,056,209.36 4,782,600.00 1.028 1.52 577 1.55% Aaa/AA+/AAA 4358 912828Y87 T 1.750 07/31/2024 (1.58Yr-Fixed)02/11/2022 4,000,000.00 4,009,554.76 3,826,080.00 1.595 1.52 577 1.23% Aaa/AA+/AAA 4361 912828D56 T 2.375 08/15/2024 (1.62Yr-Fixed)03/22/2022 5,000,000.00 5,010,547.32 4,824,200.00 2.240 1.55 592 1.54% Aaa/AA+/AAA 4298 912828YH7 T 1.500 09/30/2024 (1.75Yr-Fixed)12/05/2019 5,000,000.00 4,992,029.53 4,747,850.00 1.595 1.69 638 1.53% Aaa/AA+/AAA 4350 912828YM6 T 1.500 10/31/2024 (1.83Yr-Fixed)12/31/2021 3,000,000.00 3,031,355.74 2,842,380.00 0.920 1.77 669 0.93% Aaa/AA+/AAA 4376 91282CEU1 T 2.875 06/15/2025 (2.45Yr-Fixed)11/18/2022 3,000,000.00 2,903,260.60 2,899,560.00 4.276 2.33 896 0.89% Aaa/AA+/AAA 4330 91282CAB7 T 0.250 07/31/2025 (2.58Yr-Fixed)05/19/2021 5,000,000.00 4,953,575.49 4,511,900.00 0.615 2.51 942 1.52% Aaa/AA+/AAA 4340 91282CAJ0 T 0.250 08/31/2025 (2.66Yr-Fixed)09/27/2021 5,000,000.00 4,936,388.60 4,496,100.00 0.735 2.59 973 1.52% Aaa/AA+/AAA 4351 9128284Z0 T 2.750 08/31/2025 (2.66Yr-Fixed)12/31/2021 5,000,000.00 5,214,219.87 4,806,050.00 1.103 2.50 973 1.60% Aaa/AA+/AAA 4341 91282CCP4 T 0.625 07/31/2026 (3.58Yr-Fixed)09/30/2021 5,000,000.00 4,943,269.24 4,418,150.00 0.950 3.44 1,307 1.52% Aaa/AA+/AAA 4339 91282CCW9 T 0.750 08/31/2026 (3.66Yr-Fixed)09/23/2021 1,000,000.00 994,990.85 885,430.00 0.890 3.52 1,338 0.31% Aaa/AA+/AAA 4342 91282CCW9 T 0.750 08/31/2026 (3.66Yr-Fixed)11/23/2021 5,000,000.00 4,905,189.80 4,427,150.00 1.285 3.52 1,338 1.51% Aaa/AA+/AAA 4379 91282CEW7 T 3.250 06/30/2027 (4.49Yr-Fixed)12/29/2022 5,000,000.00 4,847,029.65 4,834,550.00 4.000 4.10 1,641 1.49% Aaa/AA+/AAA U.S. Treasuries Total 86,000,000.00 85,670,914.27 81,462,990.00 26.33% 4290 45818WBX3 IADB 2.870 07/20/2023 (0.55Yr-Fixed)03/28/2019 4,000,000.00 4,012,555.46 3,955,280.00 2.270 0.53 200 1.23% Aaa/AAA/AAA 4291 45818WBY1 IADB 2.960 08/16/2023 (0.62Yr-Fixed)03/28/2019 5,000,000.00 5,020,382.60 4,938,500.00 2.271 0.60 227 1.54% Aaa/AAA/AAA 4323 459056HV2 IBRD 1.500 08/28/2024 (1.66Yr-Fixed)04/23/2021 5,000,000.00 5,088,385.73 4,748,650.00 0.425 1.60 605 1.56% Aaa/AAA/AAA 4338 459058JE4 IBRD 0.375 07/28/2025 (2.57Yr-Fixed)07/30/2021 5,000,000.00 4,973,569.54 4,518,400.00 0.583 2.50 939 1.53% Aaa/AAA/AAA 4319 459058JL8 IBRD 0.500 10/28/2025 (2.82Yr-Fixed)01/12/2021 5,000,000.00 4,998,379.63 4,491,900.00 0.512 2.73 1,031 1.54% Aaa/AAA/AAA 4324 45906M2L4 IBRD 0.650 02/24/2026 (3.15YrNC1.81Mo-Dq-Fixed) 04/30/2021 5,000,000.00 4,966,153.75 4,446,150.00 0.870 3.03 1,150 1.53% Aaa/AAA/AAA Supranational Total 29,000,000.00 29,059,426.72 27,098,880.00 8.93% 4285 3130AFWX1 FHLB 2.550 05/30/2023 (0.41Yr-Fixed)02/26/2019 5,000,000.00 5,000,000.00 4,962,600.00 2.550 0.40 149 1.54% Aaa/AA+/NR 4281 313383QR5 FHLB 3.250 06/09/2023 (0.44Yr-Fixed)12/20/2018 5,000,000.00 5,010,408.95 4,973,200.00 2.743 0.43 159 1.54% Aaa/AA+/NR 4368 313383MD0 FHLB 2.625 06/09/2023 (0.44Yr-Fixed)05/09/2022 7,000,000.00 7,012,761.54 6,946,380.00 2.201 0.43 159 2.15%Aaa/AA+/NR 4287 3137EAEN5 FHLMC 2.750 06/19/2023 (0.46Yr-Fixed)03/08/2019 3,000,000.00 3,003,957.43 2,974,680.00 2.450 0.45 169 0.92% Aaa/AA+/AAA 4288 3137EAEN5 FHLMC 2.750 06/19/2023 (0.46Yr-Fixed)03/14/2019 3,000,000.00 3,004,133.79 2,974,680.00 2.437 0.45 169 0.92% Aaa/AA+/AAA 4289 3135G0U43 FNMA 2.875 09/12/2023 (0.70Yr-Fixed)03/15/2019 5,000,000.00 5,013,442.55 4,935,750.00 2.465 0.67 254 1.54% Aaa/AA+/AAA 4377 313384ND7 FHDN 0.000 10/19/2023 (0.80Yr-Disco)12/05/2022 3,000,000.00 2,888,328.75 2,894,610.00 4.817 0.78 291 0.89% P-1/A-1+/NR 4292 3133ECHX5 FFCB 2.260 03/13/2024 (1.20Yr-Fixed)05/23/2019 5,000,000.00 5,001,348.44 4,852,850.00 2.236 1.15 437 1.54% Aaa/AA+/AAA 4378 3130ATVC8 FHLB 4.875 06/14/2024 (1.45Yr-Fixed)12/28/2022 5,000,000.00 5,008,700.10 5,006,050.00 4.740 1.38 530 1.54% Aaa/AA+/NR 4348 3130AQD42 FHLB 0.920 06/28/2024 (1.49YrNC2.86Mo-Dq-Fixed) 12/28/2021 5,000,000.00 5,000,000.00 4,711,850.00 0.920 1.45 544 1.54% Aaa/AA+/NR 4344 3130AQ3C5 FHLB 1.000 08/28/2024 (1.66YrNC1.94Mo-Dq-Fixed) 12/02/2021 4,000,000.00 4,000,000.00 3,753,200.00 1.000 1.60 605 1.23% Aaa/AA+/NR 4373 3133XVDG3 FHLB 4.375 09/13/2024 (1.70Yr-Fixed)09/23/2022 5,000,000.00 5,010,817.75 4,977,300.00 4.240 1.60 621 1.54% Aaa/AA+/NR Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 12/31/2022 9 40 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4336 3130AMXJ6 FHLB 0.500 09/30/2024 (1.75YrNC2.92Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,636,850.00 0.500 1.70 638 1.54% Aaa/AA+/NR 4346 3130AQD59 FHLB 1.000 09/30/2024 (1.75YrNC2.92Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,673,650.00 1.000 1.69 638 1.54% Aaa/AA+/NR 4349 3130AQD59 FHLB 1.000 09/30/2024 (1.75YrNC2.92Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,673,650.00 1.000 1.69 638 1.54% Aaa/AA+/NR 4334 3130AMW65 FHLB 0.500 12/30/2024 (2.00YrNC2.92Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,595,200.00 0.500 1.94 729 1.54% Aaa/AA+/NR 4332 3130AMQ62 FHLB 0.625 03/14/2025 (2.20YrNC2.40Mo-Dq-Fixed) 06/14/2021 5,000,000.00 5,000,000.00 4,574,350.00 0.625 2.13 803 1.54% Aaa/AA+/NR 4329 3135G04Z3 FNMA 0.500 06/17/2025 (2.46Yr-Fixed)05/14/2021 5,000,000.00 4,984,451.39 4,549,550.00 0.628 2.39 898 1.53% Aaa/AA+/AAA 4345 3130AQ5S8 FHLB 1.250 06/30/2025 (2.49YrNC2.92Mo-Dq-Fixed) 12/30/2021 4,650,000.00 4,650,000.00 4,279,488.00 1.250 2.40 911 1.43% Aaa/AA+/NR 4327 3130AMDL3 FHLB 0.800 07/25/2025 (2.56YrNC1.84Mo-Dq-Fixed) 05/25/2021 5,000,000.00 5,000,000.00 4,540,300.00 0.800 2.47 936 1.54% Aaa/AA+/NR 4360 3130AQT94 FHLB 1.600 08/28/2025 (2.66YrNC1.94Mo-1x-Fixed) 03/04/2022 4,575,000.00 4,549,687.01 4,232,698.50 1.816 2.53 970 1.40% Aaa/AA+/NR 4331 3130AMQ54 FHLB 0.700 09/16/2025 (2.71YrNC8.51Mo-Da-Fixed) 06/16/2021 5,000,000.00 5,000,000.00 4,507,550.00 0.700 2.61 989 1.54% Aaa/AA+/NR 4318 3135GA2Z3 FNMA 0.560 11/17/2025 (2.88YrNC10.55Mo-Da-Fixed) 01/11/2021 3,000,000.00 3,001,958.08 2,683,320.00 0.500 2.78 1,051 0.92% Aaa/AA+/AAA 4320 3130AKN36 FHLB 0.525 01/15/2026 (3.04YrNC0.49Mo-Dq-Fixed) 01/15/2021 5,000,000.00 4,996,961.11 4,429,950.00 0.545 2.93 1,110 1.54% Aaa/AA+/NR 4321 3130AKN85 FHLB 0.550 01/20/2026 (3.05YrNC0.66Mo-Dq-Fixed) 01/20/2021 5,000,000.00 4,998,473.61 4,438,950.00 0.560 2.94 1,115 1.54% Aaa/AA+/NR 4322 3130AKUS3 FHLB 0.500 01/28/2026 (3.07YrNC0.92Mo-Dq-Fixed) 01/28/2021 5,000,000.00 5,000,000.00 4,428,450.00 0.500 2.97 1,123 1.54% Aaa/AA+/NR 4333 3130ALEY6 FHLB 0.800 03/04/2026 (3.17YrNC2.07Mo-Dq-Fixed) 06/10/2021 5,000,000.00 5,000,000.00 4,456,650.00 0.800 3.05 1,158 1.54% Aaa/AA+/NR 4328 3130AMJN3 FHLB 1.030 05/26/2026 (3.40YrNC1.87Mo-Dq-Fixed) 05/26/2021 5,000,000.00 5,000,000.00 4,465,100.00 1.030 3.25 1,241 1.54% Aaa/AA+/NR 4335 3130AMFS6 FHLB 0.750 06/12/2026 (3.44Yr-Fixed)06/17/2021 5,000,000.00 4,979,259.05 4,453,450.00 0.873 3.32 1,258 1.53% Aaa/AA+/NR 4347 3130AQ7E7 FHLB 1.500 06/30/2026 (3.49YrNC2.92Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,001,554.32 4,519,900.00 1.339 3.32 1,276 1.54% Aaa/AA+/NR 4356 3130AQS79 FHLB 1.375 08/07/2026 (3.60YrNC19.22Mo-1x-Step) 02/07/2022 5,000,000.00 5,000,000.00 4,561,300.00 1.375 3.31 1,314 1.54% Aaa/AA+/NR U.S. Agencies Total 147,225,000.00 147,116,243.85 137,663,506.50 45.21% 4313 037833DE7 AAPL 2.400 01/13/2023 (0.03Yr-Fixed)04/29/2020 5,000,000.00 5,002,683.37 4,997,600.00 0.720 0.03 12 1.54% Aaa/AA+/NR 4306 90331HNV1 USB 3.400 07/24/2023 (0.56YrNC5.72Mo-Cc-Fixed) 02/21/2020 2,000,000.00 2,018,409.94 1,981,740.00 1.671 0.54 204 0.62% A1/AA-/A1 4300 254687CR5 DIS 4.000 10/01/2023 (0.75Yr-Fixed)12/16/2019 2,875,000.00 2,914,807.69 2,852,891.25 2.070 0.72 273 0.90% A2/BBB+/A- 4355 67066GAL8 NVDA 0.584 06/14/2024 (1.45YrNC5.42Mo-Cc-Fixed) 01/24/2022 5,000,000.00 4,952,473.90 4,717,700.00 1.250 1.41 530 1.52% A2/A/ 4325 91159HHX1 USB 2.400 07/30/2024 (1.58YrNC17.91Mo-Cc-Fixed) 04/30/2021 3,809,000.00 3,917,551.29 3,661,744.06 0.528 1.50 576 1.20% A2/A+/A+ 4343 14913R2P1 CAT 0.600 09/13/2024 (1.70Yr-Fixed)12/02/2021 5,000,000.00 4,968,177.22 4,664,150.00 0.980 1.65 621 1.53% A2/A/A 4371 459200KS9 IBM 4.000 07/27/2025 (2.57Yr-Fixed)08/11/2022 6,000,000.00 6,027,363.04 5,902,620.00 3.810 2.36 938 1.85% A3/A-/ 4372 931142EW9 WMT 3.900 09/09/2025 (2.69Yr-Fixed)09/22/2022 5,000,000.00 4,968,610.31 4,923,950.00 4.150 2.49 982 1.53% Aa2/AA/AA 4375 110122CN6 BMY 3.200 06/15/2026 (3.45YrNC39.46Mo-Cc-Fixed) 11/16/2022 5,000,000.00 4,797,620.79 4,766,750.00 4.480 3.17 1,261 1.47% A2/A+/WD Corporates Total 39,684,000.00 39,567,697.55 38,469,145.31 12.16% Holdings Total 306,909,000.00 306,303,032.39 289,571,671.81 94.12% Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 12/31/2022 10 41 Cash/Money Market/LGIP Activity Report Huntington Beach Portfolio: CITY Reporting Date: 12/31/2022 Cash/Money Market Account Activity Accounting ID Description Activity Date Transaction Type Transaction Amount 003 California Asset Management Program 12/01/2022 Interest Received $50,930.64 003 California Asset Management Program 12/14/2022 Withdrawal ($3,000,000.00) 003 California Asset Management Program 12/06/2022 Deposit $3,000,000.00 003 California Asset Management Program 12/23/2022 Deposit $3,000,000.00 Activity Total $3,050,930.64 11 42 Redemption Activity Report Huntington Beach Portfolio: CITY Reporting Date: 12/31/2022 Redemption Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total Activity Total $0.00 $0.00 $0.00 $0.00 12 43 Purchase Activity Report Huntington Beach Portfolio: CITY Reporting Date: 12/31/2022 Purchase Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total 4377 Buy 313384ND7 FHDN 0.000 10/19/2023 95.93225 12/05/2022 12/05/2022 3,000,000.00 $2,877,967.50 $0.00 $2,877,967.50 4378 Buy 3130ATVC8 FHLB 4.875 06/14/2024 100.17500 12/28/2022 12/28/2022 5,000,000.00 $5,008,750.00 $34,531.25 $5,043,281.25 4379 Buy 91282CEW7 T 3.250 06/30/2027 96.93500 12/29/2022 12/29/2022 5,000,000.00 $4,846,750.00 $80,366.85 $4,927,116.85 Activity Total 13,000,000.00 $12,733,467.50 $114,898.10 $12,848,365.60 13 44 Bond Interest Received Activity Report Huntington Beach Portfolio: CITY Reporting Date: 12/31/2022 Bond Interest Received Accounting ID Transaction Type Cusip Description Date Posted Cash Interest Received Purchased Interest Adjustment Net Interest 4281 Interest Income 313383QR5 FHLB 3.250 06/09/2023 12/09/2022 $81,250.00 $81,250.00 4368 Interest Income 313383MD0 FHLB 2.625 06/09/2023 12/09/2022 $91,875.00 $91,875.00 4335 Interest Income 3130AMFS6 FHLB 0.750 06/12/2026 12/12/2022 $18,750.00 $18,750.00 4355 Interest Income 67066GAL8 NVDA 0.584 06/14/2024 12/14/2022 $14,600.00 $14,600.00 4375 Interest Income 110122CN6 BMY 3.200 06/15/2026 12/15/2022 $80,000.00 $67,111.11 $12,888.89 4376 Interest Income 91282CEU1 T 2.875 06/15/2025 12/15/2022 $43,125.00 $36,762.30 $6,362.70 4329 Interest Income 3135G04Z3 FNMA 0.500 06/17/2025 12/19/2022 $12,500.00 $12,500.00 4287 Interest Income 3137EAEN5 FHLMC 2.750 06/19/2023 12/19/2022 $41,250.00 $41,250.00 4288 Interest Income 3137EAEN5 FHLMC 2.750 06/19/2023 12/19/2022 $41,250.00 $41,250.00 4348 Interest Income 3130AQD42 FHLB 0.920 06/28/2024 12/28/2022 $23,000.00 $23,000.00 4334 Interest Income 3130AMW65 FHLB 0.500 12/30/2024 12/30/2022 $12,500.00 $12,500.00 4345 Interest Income 3130AQ5S8 FHLB 1.250 06/30/2025 12/30/2022 $29,062.50 $29,062.50 4346 Interest Income 3130AQD59 FHLB 1.000 09/30/2024 12/30/2022 $25,000.00 $25,000.00 4347 Interest Income 3130AQ7E7 FHLB 1.500 06/30/2026 12/30/2022 $37,500.00 $37,500.00 4349 Interest Income 3130AQD59 FHLB 1.000 09/30/2024 12/30/2022 $25,000.00 $25,000.00 Activity Total $576,662.50 $103,873.41 $472,789.09 14 45 Statement of Cash Receipts and Disbursements and Cash Receipts and Disbursements November 2022 December 2022 Receipts General Fund Property Tax 13,932,088$ 23,693,577$ Local Sales Tax 4,134,068 4,237,274 Public Safety Sales Tax 241,265 290,139 Transient Occupancy Tax (TOT)1,554,091 1,000,355 Utility Users Tax (UUT)1,773,734 1,359,100 Other Revenue 7,108,845 4,242,624 Total General Fund Revenue 28,744,092 34,823,068 Total All Other Funds Revenue 23,245,292 19,732,658 Total Receipts 51,989,384$ 54,555,727$ Disbursements General Fund Personnel Services (10,628,635) (16,439,936) Operating Expenses (4,631,674) (4,141,076) Capital Expenditures ‐ ‐ Non‐Operating Expenses (1,115) (465,427) Total General Fund Disbursements (15,261,424) (21,046,440) Total All Other Funds Disbursements (19,944,033) (21,907,222) Total Disbursements (35,205,456) (42,953,662) Net Change in Cash Flow 16,783,928$ 11,602,065$ Summary of Cash by Fund November 2022 December 2022 General Fund 82,962,969$ 96,739,597$ General Fund Other 3,266,741 3,190,174 Capital Projects Funds 29,030,279 28,340,156 Debt Service Funds 24,626,564 22,675,329 Enterprise Funds 85,720,624 85,914,556 Trust and Agency Funds 6,117,338 7,402,428 Internal Service Funds 30,920,596 30,146,736 Special Revenue Funds 63,814,965 63,653,164 General Ledger Cash Balances * 326,460,075$ 338,062,140$ Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Summary of Cash by Fund Finance Department December 2022 15 46 Par Value Book Value Book Value % of Port Market Value Book Yield Contribution Days to Maturity Pooled Cash Accounts Commercial Paper U.S. Treasuries Supranational U.S. Agencies Corporates Hold Total $16,076,402.75 $16,076,402.75 5.19%$16,076,402.75 0.202%1 $5,000,000.00 $4,869,590.28 1.57%$4,846,750.00 0.072%211 $81,000,000.00 $80,818,203.74 26.10%$76,616,260.00 0.385%710 $29,000,000.00 $29,066,679.33 9.39%$27,125,000.00 0.105%738 $139,225,000.00 $139,225,437.29 44.96%$129,679,172.00 0.612%796 $39,684,000.00 $39,578,020.04 12.78%$38,493,184.06 0.295%683 $309,985,402.75 $309,634,333.42 100.00%$292,836,768.81 1.671%703 Portfolio Investments 11/30/2022 Date City Treasurer TitleAlisa Backstrom I certify that this report and the corresponding pages attached accurately reflect all portfolio combined investments and conforms with all California state statutes and the Huntington Beach investment policy filed on February 1, 2022. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market values are provided by US Bank via Interactive Data Corp (IDC) Certification Fiscal YTD Transactions Redemptions 0 Purchases 2 Total Activity 2 Period Transactions Redemptions 6 Purchases 6 Total Activity 12 Net Period Earnings $1,770,437.72 Last FY Period Net Earnings $783,380.74 Avg Daily Book Balance $308,405,264.39 $1.00 $1.00 Net Effective Annual Return 1.375% Net Period Earnings $415,620.82 Avg Daily Book Balance $305,402,012.27 $1.00 $1.00 Net Effective Annual Return 1.668% Fiscal YTD Summary (153 Days)Period Earnings Summary (30 Days) __________________________________________________________________________ Portfolio Market Value Accrued Interest Paid at Purchase Accrued Interest Earned sum2 Total Market Value $292,836,768.81 $126,324.80 $1,349,956.87 $1.00 $294,313,050.48 Portfolio Book Value Accrued Interest Paid at Purchase sum2 Total Book Value $309,634,333.42 $126,324.80 $2.00 $309,760,658.22 Market Value Book Value Par Value Portfolio Summary Huntington Beach Portfolio: CITY Reporting Date: (FY2023) 11/01/2022 - 11/30/2022 Full Accrual Basis sum2 Total Par Value $1.00 $309,985,402.75 ____________________________________________ The City Portfolio uses a 12 month moving average of the 1.5Yr Treasury for comparison purposes. This period, that rate is equal to: 2.520% 16 47 Accounting ID Pool Description Type Par Value Book Value Market Value Rate % of Portfolio Composite Rating 003 California Asset Management Program LGIP 16,076,402.75 16,076,402.75 16,076,402.75 3.90 5.19%NR CITY Fund Total 16,076,402.75 16,076,402.75 16,076,402.75 5.19% Portfolio: CITYCash By Fund Report City of Huntington Beach Reporting Period: 11/30/2022 17 48 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4374 62479MTW3 MUFGBK 0.000 06/30/2023 (0.58Yr-Disco) 10/05/2022 5,000,000.00 4,869,590.28 4,846,750.00 4.602 0.58 211 1.57% P-1/A-1/F1 Commercial Paper Total 5,000,000.00 4,869,590.28 4,846,750.00 1.57% 4299 912828P79 T 1.500 02/28/2023 (0.24Yr-Fixed)12/05/2019 3,000,000.00 2,999,470.13 2,978,490.00 1.574 0.24 89 0.97% Aaa/AA+/AAA 4352 912828S92 T 1.250 07/31/2023 (0.66Yr-Fixed)01/14/2022 5,000,000.00 5,017,795.38 4,886,700.00 0.711 0.65 242 1.62% Aaa/AA+/AAA 4357 91282CCN9 T 0.125 07/31/2023 (0.66Yr-Fixed)02/02/2022 5,000,000.00 4,971,501.61 4,849,400.00 0.991 0.65 242 1.61% Aaa/AA+/AAA 4354 9128282D1 T 1.375 08/31/2023 (0.75Yr-Fixed)01/21/2022 5,000,000.00 5,017,440.37 4,876,000.00 0.903 0.73 273 1.62% Aaa/AA+/AAA 4364 9128286Z8 T 1.750 06/30/2024 (1.58Yr-Fixed)05/02/2022 7,000,000.00 6,895,343.89 6,705,790.00 2.730 1.52 577 2.23% Aaa/AA+/AAA 4370 912828XX3 T 2.000 06/30/2024 (1.58Yr-Fixed)05/27/2022 5,000,000.00 4,964,644.61 4,807,400.00 2.462 1.52 577 1.60% Aaa/AA+/AAA 4353 912828Y87 T 1.750 07/31/2024 (1.66Yr-Fixed)01/14/2022 5,000,000.00 5,059,229.28 4,778,700.00 1.028 1.60 608 1.63% Aaa/AA+/AAA 4358 912828Y87 T 1.750 07/31/2024 (1.66Yr-Fixed)02/11/2022 4,000,000.00 4,010,068.10 3,822,960.00 1.595 1.60 608 1.30% Aaa/AA+/AAA 4361 912828D56 T 2.375 08/15/2024 (1.71Yr-Fixed)03/22/2022 5,000,000.00 5,011,099.63 4,824,200.00 2.240 1.63 623 1.62% Aaa/AA+/AAA 4298 912828YH7 T 1.500 09/30/2024 (1.83Yr-Fixed)12/05/2019 5,000,000.00 4,991,642.25 4,743,150.00 1.595 1.77 669 1.61% Aaa/AA+/AAA 4350 912828YM6 T 1.500 10/31/2024 (1.92Yr-Fixed)12/31/2021 3,000,000.00 3,032,808.70 2,842,260.00 0.920 1.85 700 0.98% Aaa/AA+/AAA 4376 91282CEU1 T 2.875 06/15/2025 (2.54Yr-Fixed)11/18/2022 3,000,000.00 2,899,913.59 2,907,180.00 4.276 2.38 927 0.94% Aaa/AA+/AAA 4330 91282CAB7 T 0.250 07/31/2025 (2.66Yr-Fixed)05/19/2021 5,000,000.00 4,952,047.72 4,515,250.00 0.615 2.59 973 1.60% Aaa/AA+/AAA 4340 91282CAJ0 T 0.250 08/31/2025 (2.75Yr-Fixed)09/27/2021 5,000,000.00 4,934,361.92 4,499,200.00 0.735 2.68 1,004 1.59% Aaa/AA+/AAA 4351 9128284Z0 T 2.750 08/31/2025 (2.75Yr-Fixed)12/31/2021 5,000,000.00 5,221,044.96 4,821,300.00 1.103 2.59 1,004 1.69% Aaa/AA+/AAA 4341 91282CCP4 T 0.625 07/31/2026 (3.66Yr-Fixed)09/30/2021 5,000,000.00 4,941,923.67 4,429,500.00 0.950 3.53 1,338 1.60% Aaa/AA+/AAA 4339 91282CCW9 T 0.750 08/31/2026 (3.75Yr-Fixed)09/23/2021 1,000,000.00 994,874.79 888,130.00 0.890 3.60 1,369 0.32% Aaa/AA+/AAA 4342 91282CCW9 T 0.750 08/31/2026 (3.75Yr-Fixed)11/23/2021 5,000,000.00 4,902,993.15 4,440,650.00 1.285 3.60 1,369 1.58% Aaa/AA+/AAA U.S. Treasuries Total 81,000,000.00 80,818,203.74 76,616,260.00 26.10% 4290 45818WBX3 IADB 2.870 07/20/2023 (0.63Yr-Fixed)03/28/2019 4,000,000.00 4,014,448.25 3,956,400.00 2.270 0.61 231 1.30% Aaa/AAA/AAA 4291 45818WBY1 IADB 2.960 08/16/2023 (0.71Yr-Fixed)03/28/2019 5,000,000.00 5,023,100.29 4,941,500.00 2.271 0.69 258 1.62% Aaa/AAA/AAA 4323 459056HV2 IBRD 1.500 08/28/2024 (1.74Yr-Fixed)04/23/2021 5,000,000.00 5,092,827.22 4,748,650.00 0.425 1.68 636 1.64% Aaa/AAA/AAA 4338 459058JE4 IBRD 0.375 07/28/2025 (2.66Yr-Fixed)07/30/2021 5,000,000.00 4,972,714.19 4,521,900.00 0.583 2.58 970 1.61% Aaa/AAA/AAA 4319 459058JL8 IBRD 0.500 10/28/2025 (2.91Yr-Fixed)01/12/2021 5,000,000.00 4,998,331.84 4,499,100.00 0.512 2.82 1,062 1.61% Aaa/AAA/AAA 4324 45906M2L4 IBRD 0.650 02/24/2026 (3.23YrNC2.83Mo-Dq-Fixed) 04/30/2021 5,000,000.00 4,965,257.55 4,457,450.00 0.870 3.12 1,181 1.60% Aaa/AAA/AAA Supranational Total 29,000,000.00 29,066,679.33 27,125,000.00 9.39% 4285 3130AFWX1 FHLB 2.550 05/30/2023 (0.49Yr-Fixed)02/26/2019 5,000,000.00 5,000,000.00 4,949,850.00 2.550 0.48 180 1.61% Aaa/AA+/NR 4281 313383QR5 FHLB 3.250 06/09/2023 (0.52Yr-Fixed)12/20/2018 5,000,000.00 5,012,385.33 4,964,950.00 2.743 0.50 190 1.62% Aaa/AA+/NR 4368 313383MD0 FHLB 2.625 06/09/2023 (0.52Yr-Fixed)05/09/2022 7,000,000.00 7,015,184.62 6,928,670.00 2.201 0.50 190 2.27% Aaa/AA+/NR 4287 3137EAEN5 FHLMC 2.750 06/19/2023 (0.55Yr-Fixed)03/08/2019 3,000,000.00 3,004,664.11 2,966,670.00 2.450 0.53 200 0.97%Aaa/AA+/AAA 4288 3137EAEN5 FHLMC 2.750 06/19/2023 (0.55Yr-Fixed)03/14/2019 3,000,000.00 3,004,871.96 2,966,670.00 2.437 0.53 200 0.97% Aaa/AA+/AAA 4289 3135G0U43 FNMA 2.875 09/12/2023 (0.78Yr-Fixed)03/15/2019 5,000,000.00 5,015,049.23 4,925,500.00 2.465 0.76 285 1.62% Aaa/AA+/AAA 4292 3133ECHX5 FFCB 2.260 03/13/2024 (1.28Yr-Fixed)05/23/2019 5,000,000.00 5,001,442.08 4,845,500.00 2.236 1.24 468 1.62% Aaa/AA+/AAA 4348 3130AQD42 FHLB 0.920 06/28/2024 (1.57YrNC0.92Mo-Dq-Fixed) 12/28/2021 5,000,000.00 5,000,000.00 4,702,800.00 0.920 1.52 575 1.61% Aaa/AA+/NR 4344 3130AQ3C5 FHLB 1.000 08/28/2024 (1.74YrNC2.96Mo-Dq-Fixed) 12/02/2021 4,000,000.00 4,000,000.00 3,747,640.00 1.000 1.69 636 1.29% Aaa/AA+/NR 4373 3133XVDG3 FHLB 4.375 09/13/2024 (1.79Yr-Fixed)09/23/2022 5,000,000.00 5,011,348.03 4,984,950.00 4.240 1.68 652 1.62% Aaa/AA+/NR 4336 3130AMXJ6 FHLB 0.500 09/30/2024 (1.83YrNC0.99Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,628,400.00 0.500 1.78 669 1.61% Aaa/AA+/NR 4346 3130AQD59 FHLB 1.000 09/30/2024 (1.83YrNC0.99Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,669,650.00 1.000 1.77 669 1.61% Aaa/AA+/NR 4349 3130AQD59 FHLB 1.000 09/30/2024 (1.83YrNC0.99Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,669,650.00 1.000 1.77 669 1.61% Aaa/AA+/NR Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 11/30/2022 18 49 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4334 3130AMW65 FHLB 0.500 12/30/2024 (2.08YrNC0.99Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,588,950.00 0.500 2.02 760 1.61% Aaa/AA+/NR 4332 3130AMQ62 FHLB 0.625 03/14/2025 (2.28YrNC0.46Mo-Dq-Fixed) 06/14/2021 5,000,000.00 5,000,000.00 4,570,050.00 0.625 2.21 834 1.61% Aaa/AA+/NR 4329 3135G04Z3 FNMA 0.500 06/17/2025 (2.54Yr-Fixed)05/14/2021 5,000,000.00 4,983,924.92 4,553,450.00 0.628 2.47 929 1.61% Aaa/AA+/AAA 4345 3130AQ5S8 FHLB 1.250 06/30/2025 (2.58YrNC0.99Mo-Dq-Fixed) 12/30/2021 4,650,000.00 4,650,000.00 4,279,209.00 1.250 2.47 942 1.50% Aaa/AA+/NR 4327 3130AMDL3 FHLB 0.800 07/25/2025 (2.65YrNC2.86Mo-Dq-Fixed) 05/25/2021 5,000,000.00 5,000,000.00 4,538,600.00 0.800 2.56 967 1.61% Aaa/AA+/NR 4360 3130AQT94 FHLB 1.600 08/28/2025 (2.74YrNC2.96Mo-1x-Fixed) 03/04/2022 4,575,000.00 4,548,893.50 4,234,803.00 1.816 2.61 1,001 1.47% Aaa/AA+/NR 4331 3130AMQ54 FHLB 0.700 09/16/2025 (2.79YrNC9.53Mo-Da-Fixed) 06/16/2021 5,000,000.00 5,000,000.00 4,506,800.00 0.700 2.70 1,020 1.61% Aaa/AA+/NR 4318 3135GA2Z3 FNMA 0.560 11/17/2025 (2.96YrNC11.56Mo-Da-Fixed) 01/11/2021 3,000,000.00 3,002,014.78 2,683,260.00 0.500 2.87 1,082 0.97% Aaa/AA+/AAA 4320 3130AKN36 FHLB 0.525 01/15/2026 (3.12YrNC1.51Mo-Dq-Fixed) 01/15/2021 5,000,000.00 4,996,877.78 4,429,350.00 0.545 3.02 1,141 1.61% Aaa/AA+/NR 4321 3130AKN85 FHLB 0.550 01/20/2026 (3.14YrNC1.68Mo-Dq-Fixed) 01/20/2021 5,000,000.00 4,998,431.94 4,438,350.00 0.560 3.03 1,146 1.61% Aaa/AA+/NR 4322 3130AKUS3 FHLB 0.500 01/28/2026 (3.16YrNC1.94Mo-Dq-Fixed) 01/28/2021 5,000,000.00 5,000,000.00 4,427,850.00 0.500 3.05 1,154 1.61% Aaa/AA+/NR 4333 3130ALEY6 FHLB 0.800 03/04/2026 (3.26YrNC0.13Mo-Dq-Fixed) 06/10/2021 5,000,000.00 5,000,000.00 4,458,400.00 0.800 3.13 1,189 1.61% Aaa/AA+/NR 4328 3130AMJN3 FHLB 1.030 05/26/2026 (3.48YrNC2.89Mo-Dq-Fixed) 05/26/2021 5,000,000.00 5,000,000.00 4,469,550.00 1.030 3.34 1,272 1.61% Aaa/AA+/NR 4335 3130AMFS6 FHLB 0.750 06/12/2026 (3.53Yr-Fixed)06/17/2021 5,000,000.00 4,978,757.66 4,457,150.00 0.873 3.39 1,289 1.61% Aaa/AA+/NR 4347 3130AQ7E7 FHLB 1.500 06/30/2026 (3.58YrNC0.99Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,001,591.36 4,525,950.00 1.339 3.36 1,307 1.62% Aaa/AA+/NR 4356 3130AQS79 FHLB 1.375 08/07/2026 (3.68YrNC20.24Mo-1x-Step) 02/07/2022 5,000,000.00 5,000,000.00 4,566,550.00 1.375 3.35 1,345 1.61% Aaa/AA+/NR U.S. Agencies Total 139,225,000.00 139,225,437.29 129,679,172.00 44.96% 4313 037833DE7 AAPL 2.400 01/13/2023 (0.12YrNC0.43Mo-Cc-Fixed) 04/29/2020 5,000,000.00 5,009,391.79 4,986,350.00 0.720 0.12 43 1.62% Aaa/AA+/NR 4306 90331HNV1 USB 3.400 07/24/2023 (0.64YrNC6.74Mo-Cc-Fixed) 02/21/2020 2,000,000.00 2,021,130.62 1,980,740.00 1.671 0.62 235 0.65% A1/AA-/A1 4300 254687CR5 DIS 4.000 10/01/2023 (0.83Yr-Fixed)12/16/2019 2,875,000.00 2,919,230.77 2,845,876.25 2.070 0.80 304 0.94% A2/BBB+/A- 4355 67066GAL8 NVDA 0.584 06/14/2024 (1.54YrNC6.44Mo-Cc-Fixed) 01/24/2022 5,000,000.00 4,949,747.73 4,700,700.00 1.250 1.49 561 1.60% A2/A/ 4325 91159HHX1 USB 2.400 07/30/2024 (1.66YrNC18.92Mo-Cc-Fixed) 04/30/2021 3,809,000.00 3,923,274.56 3,676,027.81 0.528 1.58 607 1.27% A2/A+/A+ 4343 14913R2P1 CAT 0.600 09/13/2024 (1.79Yr-Fixed)12/02/2021 5,000,000.00 4,966,617.28 4,654,250.00 0.980 1.73 652 1.60% A2/A/A 4371 459200KS9 IBM 4.000 07/27/2025 (2.65Yr-Fixed)08/11/2022 6,000,000.00 6,028,249.53 5,908,740.00 3.810 2.45 969 1.95% A3/A-/ 4372 931142EW9 WMT 3.900 09/09/2025 (2.77Yr-Fixed)09/22/2022 5,000,000.00 4,967,637.49 4,937,750.00 4.150 2.57 1,013 1.60% Aa2/AA/AA 4375 110122CN6 BMY 3.200 06/15/2026 (3.54YrNC40.48Mo-Cc-Fixed) 11/16/2022 5,000,000.00 4,792,740.26 4,802,750.00 4.480 3.20 1,292 1.55% A2/A+/WD Corporates Total 39,684,000.00 39,578,020.04 38,493,184.06 12.78% Holdings Total 293,909,000.00 293,557,930.67 276,760,366.06 94.81% Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 11/30/2022 19 50 Cash/Money Market/LGIP Activity Report Huntington Beach Portfolio: CITY Reporting Date: 11/30/2022 Cash/Money Market Account Activity Accounting ID Description Activity Date Transaction Type Transaction Amount 001 Orange County Pool 11/01/2022 Admin Fee ($0.59) 001 Orange County Pool 11/28/2022 Interest Received $3,385.76 001 Orange County Pool 11/28/2022 Interest Received $174.54 001 Orange County Pool 11/28/2022 Interest Received $19.90 001 Orange County Pool 11/28/2022 Interest Received $16.78 001 Orange County Pool 11/28/2022 Admin Fee ($0.60) 001 Orange County Pool 11/23/2022 Withdrawal ($10,380.91) Activity Total ($6,785.12) 003 California Asset Management Program 11/01/2022 Interest Received $47,828.38 003 California Asset Management Program 11/23/2022 Withdrawal ($3,000,000.00) 003 California Asset Management Program 11/25/2022 Deposit $3,000,000.00 Activity Total $47,828.38 20 51 Redemption Activity Report Huntington Beach Portfolio: CITY Reporting Date: 11/30/2022 Redemption Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total Activity Total $0.00 $0.00 $0.00 $0.00 21 52 Purchase Activity Report Huntington Beach Portfolio: CITY Reporting Date: 11/30/2022 Purchase Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total 4375 Buy 110122CN6 BMY 3.200 06/15/2026 95.80600 11/16/2022 11/16/2022 5,000,000.00 $4,790,300.00 $67,111.11 $4,857,411.11 4376 Buy 91282CEU1 T 2.875 06/15/2025 96.61700 11/18/2022 11/18/2022 3,000,000.00 $2,898,510.00 $36,762.30 $2,935,272.30 Activity Total 8,000,000.00 $7,688,810.00 $103,873.41 $7,792,683.41 22 53 Bond Interest Received Activity Report Huntington Beach Portfolio: CITY Reporting Date: 11/30/2022 Bond Interest Received Accounting ID Transaction Type Cusip Description Date Posted Cash Interest Received Purchased Interest Adjustment Net Interest 4318 Interest Income 3135GA2Z3 FNMA 0.560 11/17/2025 11/17/2022 $8,400.00 $8,400.00 4327 Interest Income 3130AMDL3 FHLB 0.800 07/25/2025 11/25/2022 $20,000.00 $20,000.00 4328 Interest Income 3130AMJN3 FHLB 1.030 05/26/2026 11/28/2022 $25,750.00 $25,750.00 4285 Interest Income 3130AFWX1 FHLB 2.550 05/30/2023 11/30/2022 $63,750.00 $63,750.00 Activity Total $117,900.00 $0.00 $117,900.00 23 54 Statement of Cash Receipts and Disbursements and Cash Receipts and Disbursements October 2022 November 2022 Receipts General Fund Property Tax 440,651$13,932,088$ Local Sales Tax 4,402,273 4,134,068 Public Safety Sales Tax 231,794 241,265 Transient Occupancy Tax (TOT)1,737,764 1,554,091 Utility Users Tax (UUT)1,991,253 1,773,734 Other Revenue 3,747,691 7,108,845 Total General Fund Revenue 12,551,426 28,744,092 Total All Other Funds Revenue 11,323,268 23,245,292 Total Receipts 23,874,694$ 51,989,384$ Disbursements General Fund Personnel Services (11,068,897) (10,628,635) Operating Expenses (2,746,380) (4,631,674) Capital Expenditures (222)‐ Non‐Operating Expenses (70,142)(1,115) Total General Fund Disbursements (13,885,641) (15,261,424) Total All Other Funds Disbursements (17,864,856) (19,944,033) Total Disbursements (31,750,497) (35,205,456) Net Change in Cash Flow (7,875,803)$ 16,783,928$ Summary of Cash by Fund October 2022 November 2022 General Fund 69,410,947$ 82,893,615$ General Fund Other 3,230,629 3,263,028 Capital Projects Funds 30,764,567 28,964,429 Debt Service Funds 23,131,836 24,584,593 Enterprise Funds 82,397,405 85,567,084 Trust and Agency Funds 5,181,101 5,989,025 Internal Service Funds 30,475,469 30,855,028 Special Revenue Funds 64,503,530 63,762,611 General Ledger Cash Balances * 309,095,485$ 325,879,412$ Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Summary of Cash by Fund Finance Department November 2022 24 55 Par Value Book Value Book Value % of Port Market Value Book Yield Contribution Days to Maturity Local Govt Inv Pools (LGIP) Commerical Paper U.S. Treasuries Supranational U.S. Agencies Corporate MTN Hold Total $16,035,359.49 $16,035,359.49 5.31%$16,035,359.49 0.167%1 $5,000,000.00 $4,851,048.61 1.61%$4,824,250.00 0.074%241 $78,000,000.00 $77,916,031.58 25.81%$73,234,670.00 0.353%732 $29,000,000.00 $29,073,931.94 9.63%$26,902,230.00 0.108%768 $139,225,000.00 $139,231,659.57 46.12%$128,723,634.25 0.628%826 $34,684,000.00 $34,800,482.78 11.53%$33,476,548.94 0.231%629 $301,944,359.49 $301,908,513.97 100.00%$283,196,692.68 1.560%720 Portfolio Investments 10/31/2022 Date City Treasurer TitleAlisa Backstrom I certify that this report and the corresponding pages attached accurately reflect all portfolio combined investments and conforms with all California state statutes and the Huntington Beach investment policy filed on February 1, 2022. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market values are provided by US Bank via Interactive Data Corp (IDC). Certification Fiscal YTD Transactions Redemptions 1 Purchases 1 Total Activity 2 Period Transactions Redemptions 6 Purchases 4 Total Activity 10 Net Period Earnings $1,354,816.90 Last FY Period Net Earnings $783,380.74 Avg Daily Book Balance $309,456,077.43 $1.00 $1.00 Net Effective Annual Return 1.305% Net Period Earnings $403,240.70 Avg Daily Book Balance $305,467,931.19 $1.00 $1.00 Net Effective Annual Return 1.565% Fiscal YTD Summary (123 Days)Period Earnings Summary (31 Days) __________________________________________________________________________ Portfolio Market Value Accrued Interest Paid at Purchase Accrued Interest Earned sum2 Total Market Value $283,196,692.68 $22,451.39 $1,074,982.33 $1.00 $284,294,126.40 Portfolio Book Value Accrued Interest Paid at Purchase sum2 Total Book Value $301,908,513.97 $22,451.39 $2.00 $301,930,965.36 Market Value Book Value Par Value Portfolio Summary Huntington Beach Portfolio: CITY Reporting Date: (FY2023) 10/01/2022 - 10/31/2022 Full Accrual Basis sum2 Total Par Value $1.00 $301,944,359.49 ____________________________________________ The City Portfolio uses a 12 month moving average of the 1.5Yr Treasury for comparison purposes. This period, that rate is equal to: 2.190% AB 25 56 Accounting ID Pool Description Type Par Value Book Value Market Value Rate % of Portfolio Composite Rating 001 Orange County Pool LGIP 6,785.12 6,785.12 6,785.12 1.85 0.00%NR 003 California Asset Management Program LGIP 16,028,574.37 16,028,574.37 16,028,574.37 3.14 5.31%NR CITY Fund Total 16,035,359.49 16,035,359.49 16,035,359.49 5.31% Portfolio: CITYCash By Fund Report City of Huntington Beach Reporting Period: 10/31/2022 26 57 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4374 62479MTW3 MUFGBK 0.000 06/30/2023 (0.66Yr-Disco) 10/05/2022 5,000,000.00 4,851,048.61 4,824,250.00 4.602 0.66 241 1.61% P-1/A-1/F1 Commercial Paper Total 5,000,000.00 4,851,048.61 4,824,250.00 1.61% 4299 912828P79 T 1.500 02/28/2023 (0.33Yr-Fixed)12/05/2019 3,000,000.00 2,999,291.52 2,973,300.00 1.574 0.32 119 0.99% Aaa/AA+/AAA 4352 912828S92 T 1.250 07/31/2023 (0.74Yr-Fixed)01/14/2022 5,000,000.00 5,020,001.42 4,875,000.00 0.711 0.73 272 1.66% Aaa/AA+/AAA 4357 91282CCN9 T 0.125 07/31/2023 (0.74Yr-Fixed)02/02/2022 5,000,000.00 4,967,968.75 4,834,400.00 0.991 0.73 272 1.65% Aaa/AA+/AAA 4354 9128282D1 T 1.375 08/31/2023 (0.83Yr-Fixed)01/21/2022 5,000,000.00 5,019,356.90 4,866,600.00 0.903 0.81 303 1.66% Aaa/AA+/AAA 4364 9128286Z8 T 1.750 06/30/2024 (1.66Yr-Fixed)05/02/2022 7,000,000.00 6,889,902.49 6,680,380.00 2.730 1.60 607 2.28% Aaa/AA+/AAA 4370 912828XX3 T 2.000 06/30/2024 (1.66Yr-Fixed)05/27/2022 5,000,000.00 4,962,806.37 4,791,200.00 2.462 1.60 607 1.64% Aaa/AA+/AAA 4353 912828Y87 T 1.750 07/31/2024 (1.75Yr-Fixed)01/14/2022 5,000,000.00 5,062,151.78 4,761,550.00 1.028 1.68 638 1.68% Aaa/AA+/AAA 4358 912828Y87 T 1.750 07/31/2024 (1.75Yr-Fixed)02/11/2022 4,000,000.00 4,010,564.88 3,809,240.00 1.595 1.68 638 1.33% Aaa/AA+/AAA 4361 912828D56 T 2.375 08/15/2024 (1.79Yr-Fixed)03/22/2022 5,000,000.00 5,011,634.12 4,808,200.00 2.240 1.72 653 1.66% Aaa/AA+/AAA 4298 912828YH7 T 1.500 09/30/2024 (1.91Yr-Fixed)12/05/2019 5,000,000.00 4,991,267.46 4,724,800.00 1.595 1.85 699 1.65% Aaa/AA+/AAA 4350 912828YM6 T 1.500 10/31/2024 (2.00Yr-Fixed)12/31/2021 3,000,000.00 3,034,214.78 2,828,670.00 0.920 1.93 730 1.01% Aaa/AA+/AAA 4330 91282CAB7 T 0.250 07/31/2025 (2.75Yr-Fixed)05/19/2021 5,000,000.00 4,950,569.23 4,464,850.00 0.615 2.68 1,003 1.64% Aaa/AA+/AAA 4340 91282CAJ0 T 0.250 08/31/2025 (2.83Yr-Fixed)09/27/2021 5,000,000.00 4,932,400.63 4,447,450.00 0.735 2.76 1,034 1.63% Aaa/AA+/AAA 4351 9128284Z0 T 2.750 08/31/2025 (2.83Yr-Fixed)12/31/2021 5,000,000.00 5,227,649.89 4,774,200.00 1.103 2.67 1,034 1.73% Aaa/AA+/AAA 4341 91282CCP4 T 0.625 07/31/2026 (3.75Yr-Fixed)09/30/2021 5,000,000.00 4,940,621.51 4,356,050.00 0.950 3.61 1,368 1.64% Aaa/AA+/AAA 4339 91282CCW9 T 0.750 08/31/2026 (3.83Yr-Fixed)09/23/2021 1,000,000.00 994,762.48 873,130.00 0.890 3.69 1,399 0.33% Aaa/AA+/AAA 4342 91282CCW9 T 0.750 08/31/2026 (3.83Yr-Fixed)11/23/2021 5,000,000.00 4,900,867.36 4,365,650.00 1.285 3.69 1,399 1.62% Aaa/AA+/AAA U.S. Treasuries Total 78,000,000.00 77,916,031.58 73,234,670.00 25.81% 4290 45818WBX3 IADB 2.870 07/20/2023 (0.71Yr-Fixed)03/28/2019 4,000,000.00 4,016,341.03 3,950,680.00 2.270 0.69 261 1.33% Aaa/AAA/AAA 4291 45818WBY1 IADB 2.960 08/16/2023 (0.79Yr-Fixed)03/28/2019 5,000,000.00 5,025,817.97 4,934,700.00 2.271 0.77 288 1.66% Aaa/AAA/AAA 4323 459056HV2 IBRD 1.500 08/28/2024 (1.82Yr-Fixed)04/23/2021 5,000,000.00 5,097,268.71 4,730,600.00 0.425 1.76 666 1.69% Aaa/AAA/AAA 4338 459058JE4 IBRD 0.375 07/28/2025 (2.74Yr-Fixed)07/30/2021 5,000,000.00 4,971,858.83 4,464,800.00 0.583 2.66 1,000 1.65% Aaa/AAA/AAA 4319 459058JL8 IBRD 0.500 10/28/2025 (2.99Yr-Fixed)01/12/2021 5,000,000.00 4,998,284.04 4,435,150.00 0.512 2.90 1,092 1.66% Aaa/AAA/AAA 4324 45906M2L4 IBRD 0.650 02/24/2026 (3.32YrNC0.79Mo-Dq-Fixed) 04/30/2021 5,000,000.00 4,964,361.36 4,386,300.00 0.870 3.20 1,211 1.64% Aaa/AAA/AAA Supranational Total 29,000,000.00 29,073,931.94 26,902,230.00 9.63% 4285 3130AFWX1 FHLB 2.550 05/30/2023 (0.57Yr-Fixed)02/26/2019 5,000,000.00 5,000,000.00 4,944,450.00 2.550 0.56 210 1.66% Aaa/AA+/NR 4281 313383QR5 FHLB 3.250 06/09/2023 (0.60Yr-Fixed)12/20/2018 5,000,000.00 5,014,361.72 4,956,500.00 2.743 0.58 220 1.66% Aaa/AA+/NR 4368 313383MD0 FHLB 2.625 06/09/2023 (0.60Yr-Fixed)05/09/2022 7,000,000.00 7,017,607.69 6,913,620.00 2.201 0.58 220 2.32% Aaa/AA+/NR 4287 3137EAEN5 FHLMC 2.750 06/19/2023 (0.63Yr-Fixed)03/08/2019 3,000,000.00 3,005,370.80 2,964,450.00 2.450 0.61 230 1.00% Aaa/AA+/AAA 4288 3137EAEN5 FHLMC 2.750 06/19/2023 (0.63Yr-Fixed)03/14/2019 3,000,000.00 3,005,610.14 2,964,450.00 2.437 0.61 230 1.00%Aaa/AA+/AAA 4289 3135G0U43 FNMA 2.875 09/12/2023 (0.86Yr-Fixed)03/15/2019 5,000,000.00 5,016,655.91 4,921,450.00 2.465 0.84 315 1.66% Aaa/AA+/AAA 4292 3133ECHX5 FFCB 2.260 03/13/2024 (1.36Yr-Fixed)05/23/2019 5,000,000.00 5,001,535.72 4,837,650.00 2.236 1.32 498 1.66% Aaa/AA+/AAA 4348 3130AQD42 FHLB 0.920 06/28/2024 (1.66YrNC1.91Mo-Dq-Fixed) 12/28/2021 5,000,000.00 5,000,000.00 4,683,700.00 0.920 1.61 605 1.66% Aaa/AA+/NR 4344 3130AQ3C5 FHLB 1.000 08/28/2024 (1.82YrNC0.92Mo-Dq-Fixed) 12/02/2021 4,000,000.00 4,000,000.00 3,729,880.00 1.000 1.77 666 1.32% Aaa/AA+/NR 4373 3133XVDG3 FHLB 4.375 09/13/2024 (1.87Yr-Fixed)09/23/2022 5,000,000.00 5,011,878.31 4,977,850.00 4.240 1.77 682 1.66% Aaa/AA+/NR 4336 3130AMXJ6 FHLB 0.500 09/30/2024 (1.91YrNC1.97Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,602,550.00 0.500 1.86 699 1.66% Aaa/AA+/NR 4346 3130AQD59 FHLB 1.000 09/30/2024 (1.91YrNC1.97Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,667,100.00 1.000 1.85 699 1.66% Aaa/AA+/NR 4349 3130AQD59 FHLB 1.000 09/30/2024 (1.91YrNC1.97Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,000,000.00 4,667,100.00 1.000 1.85 699 1.66% Aaa/AA+/NR 4334 3130AMW65 FHLB 0.500 12/30/2024 (2.16YrNC1.97Mo-Dq-Fixed) 06/30/2021 5,000,000.00 5,000,000.00 4,556,300.00 0.500 2.10 790 1.66% Aaa/AA+/NR Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 10/31/2022 27 58 Accounting ID Cusip Security Description Purchase Date Par Value Book Value Market Value Book Yield Effective Duration Days to Maturity (%) of Portfolio Mdy/S&P/Fitch 4332 3130AMQ62 FHLB 0.625 03/14/2025 (2.37YrNC1.45Mo-Dq-Fixed) 06/14/2021 5,000,000.00 5,000,000.00 4,533,000.00 0.625 2.30 864 1.66% Aaa/AA+/NR 4329 3135G04Z3 FNMA 0.500 06/17/2025 (2.63Yr-Fixed)05/14/2021 5,000,000.00 4,983,398.44 4,508,950.00 0.628 2.55 959 1.65% Aaa/AA+/AAA 4345 3130AQ5S8 FHLB 1.250 06/30/2025 (2.66YrNC1.97Mo-Dq-Fixed) 12/30/2021 4,650,000.00 4,650,000.00 4,239,312.00 1.250 2.55 972 1.54% Aaa/AA+/NR 4327 3130AMDL3 FHLB 0.800 07/25/2025 (2.73YrNC0.82Mo-Dq-Fixed) 05/25/2021 5,000,000.00 5,000,000.00 4,491,650.00 0.800 2.63 997 1.66% Aaa/AA+/NR 4360 3130AQT94 FHLB 1.600 08/28/2025 (2.82YrNC3.94Mo-1x-Fixed) 03/04/2022 4,575,000.00 4,548,099.99 4,191,752.25 1.816 2.70 1,031 1.51% Aaa/AA+/NR 4331 3130AMQ54 FHLB 0.700 09/16/2025 (2.87YrNC10.51Mo-Da-Fixed) 06/16/2021 5,000,000.00 5,000,000.00 4,454,800.00 0.700 2.78 1,050 1.66% Aaa/AA+/NR 4318 3135GA2Z3 FNMA 0.560 11/17/2025 (3.04YrNC0.56Mo-Da-Fixed) 01/11/2021 3,000,000.00 3,002,071.48 2,648,370.00 0.500 2.94 1,112 0.99% Aaa/AA+/AAA 4320 3130AKN36 FHLB 0.525 01/15/2026 (3.21YrNC2.50Mo-Dq-Fixed) 01/15/2021 5,000,000.00 4,996,794.44 4,375,200.00 0.545 3.10 1,171 1.66% Aaa/AA+/NR 4321 3130AKN85 FHLB 0.550 01/20/2026 (3.22YrNC2.66Mo-Dq-Fixed) 01/20/2021 5,000,000.00 4,998,390.28 4,376,700.00 0.560 3.11 1,176 1.66% Aaa/AA+/NR 4322 3130AKUS3 FHLB 0.500 01/28/2026 (3.24YrNC2.92Mo-Dq-Fixed) 01/28/2021 5,000,000.00 5,000,000.00 4,365,950.00 0.500 3.14 1,184 1.66% Aaa/AA+/NR 4333 3130ALEY6 FHLB 0.800 03/04/2026 (3.34YrNC1.12Mo-Dq-Fixed) 06/10/2021 5,000,000.00 5,000,000.00 4,395,300.00 0.800 3.21 1,219 1.66% Aaa/AA+/NR 4328 3130AMJN3 FHLB 1.030 05/26/2026 (3.56YrNC0.85Mo-Dq-Fixed) 05/26/2021 5,000,000.00 5,000,000.00 4,403,850.00 1.030 3.40 1,302 1.66% Aaa/AA+/NR 4335 3130AMFS6 FHLB 0.750 06/12/2026 (3.61Yr-Fixed)06/17/2021 5,000,000.00 4,978,256.27 4,389,600.00 0.873 3.47 1,319 1.65% Aaa/AA+/NR 4347 3130AQ7E7 FHLB 1.500 06/30/2026 (3.66YrNC1.97Mo-Dq-Fixed) 12/30/2021 5,000,000.00 5,001,628.40 4,461,050.00 1.339 3.46 1,337 1.66% Aaa/AA+/NR 4356 3130AQS79 FHLB 1.375 08/07/2026 (3.76YrNC21.22Mo-1x-Step) 02/07/2022 5,000,000.00 5,000,000.00 4,501,100.00 1.375 3.51 1,375 1.66% Aaa/AA+/NR U.S. Agencies Total 139,225,000.00 139,231,659.57 128,723,634.25 46.12% 4313 037833DE7 AAPL 2.400 01/13/2023 (0.20YrNC1.41Mo-Cc-Fixed) 04/29/2020 5,000,000.00 5,016,100.21 4,980,650.00 0.720 0.20 73 1.66% Aaa/AA+/NR 4306 90331HNV1 USB 3.400 07/24/2023 (0.73YrNC7.72Mo-Cc-Fixed) 02/21/2020 2,000,000.00 2,023,851.31 1,975,760.00 1.671 0.70 265 0.67% A1/AA-/A1 4300 254687CR5 DIS 4.000 10/01/2023 (0.91Yr-Fixed)12/16/2019 2,875,000.00 2,923,653.85 2,848,550.00 2.070 0.89 334 0.97% A2/BBB+/A- 4355 67066GAL8 NVDA 0.584 06/14/2024 (1.62YrNC7.43Mo-Cc-Fixed) 01/24/2022 5,000,000.00 4,947,021.57 4,664,650.00 1.250 1.57 591 1.64% A2/A/ 4325 91159HHX1 USB 2.400 07/30/2024 (1.74YrNC19.91Mo-Cc-Fixed) 04/30/2021 3,809,000.00 3,928,997.82 3,640,108.94 0.528 1.67 637 1.30% A2/A+/A+ 4343 14913R2P1 CAT 0.600 09/13/2024 (1.87Yr-Fixed)12/02/2021 5,000,000.00 4,965,057.34 4,617,150.00 0.980 1.82 682 1.64% A2/A/A 4371 459200KS9 IBM 4.000 07/27/2025 (2.74Yr-Fixed)08/11/2022 6,000,000.00 6,029,136.02 5,854,380.00 3.810 2.53 999 2.00% A3/A-/ 4372 931142EW9 WMT 3.900 09/09/2025 (2.86Yr-Fixed)09/22/2022 5,000,000.00 4,966,664.67 4,895,300.00 4.150 2.65 1,043 1.65% Aa2/AA/AA Corporate MTN Total 34,684,000.00 34,800,482.78 33,476,548.94 11.53% Holdings Total 285,909,000.00 285,873,154.48 267,161,333.19 94.69% Portfolio: CITYSecurities By Structure Report City of Huntington Beach Reporting Period: 10/31/2022 28 59 Cash/Money Market/LGIP Activity Report Huntington Beach Portfolio: CITY Reporting Date: 10/31/2022 Cash/Money Market Account Activity Accounting ID Description Activity Date Transaction Type Transaction Amount 001 Orange County Pool 10/03/2022 Admin Fee ($7.30) 001 Orange County Pool 10/12/2022 Withdrawal ($6,641.87) 001 Orange County Pool 10/26/2022 Interest Received $6,785.12 Activity Total $135.95 003 California Asset Management Program 10/03/2022 Interest Received $29,119.85 003 California Asset Management Program 10/12/2022 Withdrawal ($1,000.00) 003 California Asset Management Program 10/21/2022 Withdrawal ($3,000,000.00) Activity Total ($2,971,880.15) 982 LAIF 10/14/2022 Interest Received $68,435.64 982 LAIF 10/17/2022 Withdrawal ($3,788,493.41) Activity Total ($3,720,057.77) 29 60 Redemption Activity Report Huntington Beach Portfolio: CITY Reporting Date: 10/31/2022 Redemption Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total 4363 Maturity 62479MK36 MUFGBK 0.000 10/03/2022 100.00000 10/03/2022 10/03/2022 $5,000,000.00 $5,000,000.00 $0.00 $5,000,000.00 Activity Total $5,000,000.00 $5,000,000.00 $0.00 $5,000,000.00 30 61 Purchase Activity Report Huntington Beach Portfolio: CITY Reporting Date: 10/31/2022 Purchase Transactions Accounting ID Transaction Type Cusip Description Price Settlement Date Posted Date Par Value Principal Accrued Interest Total 4374 Buy 62479MTW3 MUFGBK 0.000 06/30/2023 96.68722 10/05/2022 10/05/2022 5,000,000.00 $4,834,361.11 $0.00 $4,834,361.11 Activity Total 5,000,000.00 $4,834,361.11 $0.00 $4,834,361.11 31 62 Bond Interest Received Activity Report Huntington Beach Portfolio: CITY Reporting Date: 10/31/2022 Bond Interest Received Accounting ID Transaction Type Cusip Description Date Posted Cash Interest Received Purchased Interest Adjustment Net Interest 4300 Interest Income 254687CR5 DIS 4.000 10/01/2023 10/03/2022 $57,500.00 $57,500.00 4319 Interest Income 459058JL8 IBRD 0.500 10/28/2025 10/28/2022 $12,500.00 $12,500.00 4350 Interest Income 912828YM6 T 1.500 10/31/2024 10/31/2022 $22,500.00 $22,500.00 Activity Total $92,500.00 $0.00 $92,500.00 32 63 Statement of Cash Receipts and Disbursements and Cash Receipts and Disbursements September 2022 October 2022 Receipts General Fund Property Tax 1,068,070$ 440,651$ Local Sales Tax 4,187,866 4,402,273 Public Safety Sales Tax 245,526 231,794 Transient Occupancy Tax (TOT)1,817,586 1,737,764 Utility Users Tax (UUT)1,935,246 1,991,253 Other Revenue 4,834,163 3,747,691 Total General Fund Revenue 14,088,457 12,551,426 Total All Other Funds Revenue 20,272,775 11,323,268 Total Receipts 34,361,232$ 23,874,694$ Disbursements General Fund Personnel Services (10,165,158) (11,068,897) Operating Expenses (4,949,218) (2,746,380) Capital Expenditures (176) (222) Non‐Operating Expenses (4,208) (70,142) Total General Fund Disbursements (15,118,761) (13,885,641) Total All Other Funds Disbursements (18,454,372) (17,864,856) Total Disbursements (33,573,133) (31,750,497) Net Change in Cash Flow 788,099$ (7,875,803)$ Summary of Cash by Fund September 2022 October 2022 General Fund 70,137,007$ 68,802,792$ General Fund Other 6,430,278 3,229,834 Capital Projects Funds 33,730,578 30,751,189 Debt Service Funds 23,257,914 23,123,707 Enterprise Funds 80,157,399 82,354,355 Trust and Agency Funds 5,745,625 5,178,840 Internal Service Funds 31,219,568 30,462,392 Special Revenue Funds 65,594,486 64,493,944 General Ledger Cash Balances * 316,272,855$ 308,397,052$ Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Summary of Cash by Fund Finance Department October 2022 33 64 CITY OF HUNTINGTON BEACH QUARTERLY INVESTMENT REPORT CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM QUARTER ENDED: DECEMBER 30, 2022 65 INVESTMENT PORTFOLIO –SUMMARY at 12/31/22: Investment Type $ in millions Market Value Book Value Federal Agency Issues 137.7$ 147.1$ CA Asset Management Program (CAMP)19.1$ 19.1$ Treasury Securities 81.5$ 85.7$ Supranationals 27.1$ 29.1$ Corporate Bonds 38.5$ 39.6$ Commercial Paper 4.9$ 4.9$ TOTAL 308.7$ 325.4$ 66 INVESTMENT PORTFOLIO –INVESTMENTS BY TYPE at 12/31/22: 45%26%12%9%6%2% Federal Agencies Treasuries Corporate Bonds MTN-Supras CAMP Commercial Paper 67 INVESTMENT PORTFOLIO –SELECTED ACTIVITY QUARTER END 12/31/22: MATURITIES◼Liquidity funds moved from LAIF to CAMP◼$5MM c ommercial p aper matured PURCHASES◼$8MM Federal Agencies purchased◼$5MM corporate bond (Bristol- Myers Squibb) purchased◼$5MM commercial paper purchased◼$8MM US Treasuries purchased 68 Current Year -Month ❑December 2022: $462,460❑Up 77% from prior year Current Fiscal Year-to-date ❑Through 12/30/22: $2,232,897❑Up 43% from prior year Effective Rate of Return ❑December 2022: 1.74% ❑Fiscal Year-to-date: 1.44% Benchmark ❑December 2022: 2.84%❑12-month moving average 1.5-year Treasury INVESTMENT PORTFOLIO –EARNINGS MONTH/QUARTER END 12/31/22: 69 INTEREST RATES –US CONSTANT MATURITY TREASURY RATES JANUARY 1, 2022 –DECEMBER 30, 2022: 2-year US Treasury 4.41% at 12/30 5-year US Treasury 3.99 % at 12/30 70 SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTS at 12/31/22: (Requirements are at purchase) INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED %/$ OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS IN COMPLIANCE Commercial Paper 270 days 25%/10%A1, "A" Rating YES U.S. Treasuries 5 years None None YES Federal Agencies 5 years None None YES Supranationals 5 years 10%"AA" Rating YES Corporate Bonds 5 years 30%/10%"A" Rating YES CA Asset Mgt Program (CAMP)N/A Up to $75,000,000 None YES 71 SUMMARY:◼Safety –No principal losses◼Liquidity –Sufficient funds for operations◼Market rate of return –1.74% December, 1.44% f iscal year -to- date (upward trend)◼Prudently managed –No compliance issues◼Positive contributor to City –Earnings of $2.23 million fiscal - year -to-date 2022-23 72 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-108 MEETING DATE:2/7/2023 City Archivist Kathie Schey to announce receipt of a digitization grant award from California Revealed, an initiative of the California State Library City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™73 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-076 MEETING DATE:2/7/2023 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: Adopt Ordinance No. 4276 Amending Chapter 2.07 of the HBMC Relating to Campaign Reform - Approved for Introduction January 17, 2023 - Vote: 4-3 (Kalmick, Moser, Bolton - No) 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: Adopt 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 adopt 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: Non Applicable - Administrative Item City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™74 File #:23-076 MEETING DATE:2/7/2023 Attachment(s): 1. Ordinance No. 4276 2. Legislative Draft City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™75 76 77 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-077 MEETING DATE:2/7/2023 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: Adopt Ordinance No. 4277 Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to Anonymous Complaints - Approved for Introduction January 17, 2023 - Vote: 4-3 (Kalmick, Moser, Bolton - No) 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: Adopt 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 adopt 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: Non Applicable - Administrative Item City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™78 File #:23-077 MEETING DATE:2/7/2023 Attachment(s): 1. Ordinance No. 4277 City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™79 80 81 82 83 84 85 86 87 88 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-078 MEETING DATE:2/7/2023 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 and the Successor Agency special meeting minutes of January 17, 2023, require review and approval. Financial Impact: None. Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting and the Successor Agency special meeting minutes of January 17, 2023. 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. January 17, 2023 CC/PFA regular meeting / Successor Agency special meeting minutes City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™89 Minutes City Council/Public Financing Authority Regular and Special Meeting of the Successor Agency City of Huntington Beach Tuesday, January 17, 2023 3:30 PM – Council Chambers 5:30 PM – Council Chambers 6:00 PM – Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 3:30 PM, 5:30 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/ 3:30 PM - COUNCIL CHAMBERS CALLED TO ORDER — 3:30 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon (arrived at 3:31 pm), Bolton, and Burns Absent: None CITY COUNCIL MEMBER COMMENTS (3-Minute Time Limit) Councilmember Moser provided details on the process to apply for the Mobile Home Rental Assistance Program, and noted that all the details are available on the City's website. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS FOR CLOSED AND STUDY SESSION ITEMS ONLY (Received After Agenda Distribution) Study Session #7 (23-031) Email communication received from the Ocean View School District regarding the Housing Element. PowerPoint communication received from Ursula Luna-Reynosa, Community Development Director, entitled 2021-2029 Housing Element Update. PUBLIC COMMENTS FOR CLOSED AND STUDY SESSION ITEMS (3-Minute Time Limit) — None CLOSED SESSION ANNOUNCEMENT(S) 1. 23-037 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: Jose Rodriguez, Human Resources Manager, Travis Hopkins, Assistant 90 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 2 of 23 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). RECESSED TO CLOSED SESSION — 3:36 PM A motion was made by Burns, second by McKeon, to recess to Closed Session. CLOSED SESSION 2. 23-032 Police Department representatives conducted active shooter training with Council Members and City staff (Council Chambers) 3. 23-022 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). 4. 23-023 CONFERENCE WITH LEGAL COUNSEL — LITIGATION (Gov. Code section 54956.9(d)(4).): Number of matters: One (1) - Challenge to State’s RHNA. 5. 23-030 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION (Gov. Code section 54956.9(d)(2).): Number of matters: One (1). 6. 23-035 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. RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 5:33 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None STUDY SESSION 7. 23-031 Housing Element Update Deputy Director of Community Development Jennifer Villasenor and Senior Administrative Analyst Nicole Aube presented a PowerPoint communication entitled: 2021-2029 Housing Element Update with slides titled: Housing Element Update, Housing Element Status, Regional Housing Needs, 2021-2029 Huntington Beach RHNA, Existing Draft RHNA Strategy, Can We Adopt a Housing Element That Only Includes the RHNA (13,368 Units)?, What is No Net Loss?, Only RHNA / No Buffer Strategy, Only RHNA / No Buffer Strategy Scenario, Options to Accommodate the RHNA, Only RHNA / No buffer Strategy, and Questions? 91 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 3 of 23 Councilmember Burns and Community Development Director Luna-Reynosa discussed using "buckets of income" categories, and noted the options presented in November related to specific sites being proposed, whereas this presentation focused on approach and addressed Councilmember concerns shared at the December 20, 2022 Council meeting. Councilmember McKeon stated his support for Option B2 presented in the PowerPoint to certify the minimum number of units, and re-zone the selected site at the time each no net loss project is approved. Councilmember Bolton and Community Development Director Luna-Reynosa discussed the expectation that the California Department of Housing and Community Development (HCD) will approve a plan that uses "bucket" categories. Councilmember Moser confirmed with Community Development Director Luna-Reynosa that at a no net loss situation, the City is out of compliance with State regulations until a no net loss project is approved by Council with a specific site, and confirmed the law provides for a 180-day grace period. Councilmember Kalmick confirmed with Community Development Director Luna-Reynosa that the City would come out of non-compliance when action is taken on a project with a zoning map amendment. Community Development Director Luna-Reynosa stated staff will use Study Session feedback to make Housing Element revisions in the Affordable Housing Overlay and prepare for a Public Hearing. Councilmember Kalmick confirmed with Community Development Director Luna-Reynosa that option B2 would require a Zoning Map Amendment (ZMA) with each site, whereas option B1 would bring forward Affordable Housing Overlay criteria so that staff has the guidelines to make decisions for individual projects. There was further discussion regarding making builders remedy illegal, and how that will impact HCD's claim that having such a code puts the City in a non-compliant status. Councilmember Burns confirmed with Community Development Director Luna-Reynosa the requirements for unit size, which must comply with Fair Housing laws, and should be proportional to the mix of market- rate housing. In summary, acknowledging that voting is not allowed in a Study Session, each Councilmember stated their Option preference for the benefit of staff in moving ahead. Kalmick, and Bolton – Option A; Moser, Van Der Mark, Strickland, McKeon, and Burns – Option B2 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALLED TO ORDER A SPECIAL MEETING OF THE SUCCESSOR AGENCY — 6:03 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember Kalmick 92 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 4 of 23 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. 22-1116 Reverend Nathan Biornstad of St. Wilfrid’s Episcopal Church and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Consent Calendar #13 (22-1125) Memorandum to City Council submitted by Robin Estanislau, City Clerk, regarding a correction to the December 6, 2022 minutes. #15 (21-385) Memorandum to City Council submitted by Robin Estanislau, City Clerk, regarding a correction to Conflict of Interest Resolution 2023-01. #17 (22-1114) Email communication received regarding Volunteer Release & Waiver of Liability Agreement. Administrative Items #18 (23-028) Memorandum to City Council submitted by Catherine Jun, Assistant to the City Manager, regarding a correction to the Request for Council Action on Homelessness. Three (3) email communications received regarding the Request for Council Action on Homelessness. #19 (23-042) PowerPoint presentation entitled Consideration of OCPA Default Rate Selection and City Municipal Account Rate Selection submitted by Travis Hopkins, Assistant City Manager. Email communication received from Linda Kraemer, M.S., Chapter Chair, The Climate Reality Project: Orange County, CA Chapter regarding the Orange County Power Authority (OCPA) Default Energy Product Rate. Seven (7) email communications received regarding the Orange County Power Authority (OCPA) Default Energy Product Rate. #21 (23-017) Letter from American Civil Liberties Union Foundation (ACLU) and First Amendment Coalition (FAC) regarding Ordinance No. 4277 relating to Anonymous Complaints. Two (2) email Communications received regarding Ordinance No. 4277 relating to Anonymous Complaints. Councilmember Items #22 (23-038) Email communication received regarding the proposed public memorial honoring Don McAllister. 93 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 5 of 23 #23 (23-049) Twenty-nine (29) email communications received regarding the closure of outdoor dining on Main Street. #24 (23-051) Letter received from Carlos Rubio, President of California Teamsters Local 911, regarding the proposed implementation of a managed hiring process for vacant city staff positions. Email communication received regarding the proposed implementation of a managed hiring process for vacant city staff positions. #28 (23-045) Email communication received regarding appointments to Boards and Commissions. PUBLIC COMMENTS (3-Minute Time Limit) 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 was called to speak and directed her comments to specific actions taken by Councilmembers at the December 20, 2022 Council Meeting related to what she described as policy inconsistencies. (00:46:46) Shirley Dettloff, a resident of Huntington Beach since 1964, was called to speak and urged Councilmembers to act quickly to approve and submit a Housing Element so that the State has no reason to implement fines, withhold funding, or take over the local planning process. (00:50:03) Ryan Ransom, Professional Restaurant Consultant and Operator, currently consulting with Aloha Grill on Main Street, was called to speak and shared his professional opinions regarding many issues with the current parklet and curbside patios that are destructive and harmful to Aloha Grill. He advocated for a consistent and contiguous promenade plan that is fair to all businesses on Main Street. (00:53:44) John Briscoe, elected and re-elected 16-year Trustee, Ocean View School District, was called to speak and shared his opinions related to public comments statutes and case law. (00:55:54) Todd Brown, owner of Aloha Grill, was called to speak and stated his support for the comments made by Mr. Ransom and asked that Main Street be restored to pre-COVID operations. (00:58:55) John Raymer, a resident of Huntington Beach and Fred's Mexican Cafe General Manager was called to speak and described the issues created for guests and staff for the businesses located on the closed Second block of Main Street. (00:59:46) Joclyn Rabbitt-Sire, a resident of Huntington Beach since 1999, was called to speak and stated her support for certification of the 2021–2029 Housing Element Update as presented during the Study Session. She also asked Council to delay any change on Administrative Items #19 regarding Orange County Power Authority (OCPA), as she believes the default energy offering should remain the 100% renewable option. (01:01:19) Laura Sire, a long-time resident of Huntington Beach, and Homeless United Huntington Beach (HUHB) Member, was called to speak and stated her support for the comments of previous speakers Shirley Dettloff and Joclyn Rabbitt-Sire regarding certification of the 2021–2029 Housing Element. She asked that Council consider what is best for all residents. (01:04:36) 94 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 6 of 23 Stephanie Wilson, a long-time resident of Huntington Beach and Partner in two Downtown businesses (Fred's Mexican Cafe and Sandy's Beach Shack), was called to speak and stated her support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:05:58) Pat Goodman was called to speak and stated her opinion it is critical to have an approved Housing Element to ensure that Huntington Beach can continue to respond humanely with appropriate resources for affordable housing. She encouraged Council to act as quickly as possible to approve the 2021–2029 Housing Element. (01:08:50) Cathey Ryder, who has lived and voted in Huntington Beach since 1985, was called to speak and stated her opposition to Councilmember Items #27 regarding a request for a report on City-owned oil well operation and production. (01:11:31) Diane Bentley, a 22-year resident of Huntington Beach, was called to speak and stated her support for the Huntington Beach Navigation Center. She stated the continued operation of the Navigation Center is vital if Huntington Beach wants to keep unhoused residents from sleeping on City streets and parks. (01:14:08) Luanne Nichols was called to speak and stated her support for the complete re-opening of Downtown Main Street. She described many of the situations she has observed regarding safety and health issues since selected businesses have been allowed to expand into sidewalk and street spaces. (01:16:31) Bob Bolen, a Downtown Business Manager for over 50 years, was called to speak and stated his support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:19:34) Jim Hall, Surf City Ale House Owner, was called to speak, shared his personal experience setting up his business on the Third block of Main Street, and noted the total inequality that exists and asked for a level playing field for all businesses in the Downtown area. (01:22:22) Tanya Brown, owner of a bikini shop in the Third block of Main Street, was called to speak and stated her support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:24:54) Jeanne Stanley, an employee of the bikini shop in the Third block of Main Street and resident of Huntington Beach, was called to speak and stated her support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:26:35) Mary LeBoeuf, a volunteer who helps clean-up federally protected wetlands at the corner of Pacific View and Beach Boulevard behind the Hyatt Hotel, was called to speak and described a Waterfront Condominium Association (WCA) agreement. She stated the agreement includes a maintenance contract that includes WCA’s responsibility for an annual cost for the wetland clean-up. She noted that the City has not billed WCA for several years. Mayor Strickland asked her to complete a blue card for staff follow-up. (01:29:01) 95 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 7 of 23 Andrew Einhorn was called to speak and shared his opinion that attitudes of hate are increasing, and asked that Council remain alert to groups or individuals that target people because of faith, sexual preference, or skin color, and work to restore debate, compromise and mutual respect. (01:30:06) Susie Smith, owner of Making Waves Hair Salon located in the Third block of Main Street for 26 years, was called to speak and stated her support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:32:50) Ken Inouye, a 50-year resident of Huntington Beach and practicing CPA, was called to speak and respectfully requested that City Council conduct business in a more business-like manner, specifically related to the recent raise for City Attorney Michael Gates, and asked that agenda items include consideration of future consequences. (01:34:55) Ron Abdelfattah, owner of Jack's Surf Shop on Main Street and the building at the corner, was called to speak and stated his support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:37:13) Savitur Baduwar, Owner and Managing Partner, Indarra Modern Indian Cuisine and Restaurant in the Third block of Main Street, was called to speak and stated his support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. He also stated support for re-developing the First, Second and Third blocks of Main Street. (01:38:41) Brittany Bas, AMUSE Foundation Founder, was called to speak and shared some ideas regarding possible solutions to issues that are currently facing many Downtown businesses due to the closure of Second block of Main Street. She stated the Foundation's support for keeping Main Street open so that all individuals can make a choice on what best fits their needs in an inclusive environment which exists within the current configuration in the Downtown area. (01:42:04) Doug Von Dollen was called to speak and stated his opinion that much more study is needed regarding Ordinances for Introduction #20 amending Chapter 2.07 of the Huntington Beach Municipal Code relating to campaign reform. He asked that more study be done to understand all of the possible ramifications from this action. (01:45:44) Jignesh Padhiar, a 31-year resident of Huntington Beach, was called to speak and stated his support for Administrative Items #19 regarding Option C for Huntington Beach's Orange County Power Authority (OCPA) default energy product rate, and support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:49:04) Franceso Zaza, Owner of ZeroZero 39 Pizzeria on the Second block of Main Street for the last ten years, was called to speak and stated his support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. He also supports re- development efforts for the whole Downtown area. (01:52:08) Patricia Pappas, a 43-year resident of Huntington Beach, was called to speak and shared her personal perspective of changes in Huntington Beach throughout the last 43 years, and presented a photo journal to each Councilmember and thanked them for their service to the community. (01:53:58) 96 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 8 of 23 Dianna Orr, a resident of Huntington Beach, was called to speak and stated her opposition to Councilmember Item #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (01:57:20) Michelle Kerns, operator of a Senior Transitional Living Home, was called to speak and stated her support for Study Session Item #7 regarding the Housing Element Update. She also stated her support for Administrative Items #18 regarding the comprehensive report on City resources used to address homelessness and plan to enforce City and State laws relating to homelessness. (02:00:06) Chanel Fignetti, representing Rockin' Fig Surf Shop in the Third block of Main Street, was called to speak and stated her support for Councilmember Item #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (02:03:21) Libby was called to speak and stated her opposition to Ordinances for Introduction #21 regarding introduction of Ordinance No. 4277 relating to anonymous complaints, and asked that the item be tabled for further consideration of potential unwanted consequences. (02:05:11) Ricky Fignetti, representing Rockin' Fig Surf Shop in the Third block of Main Street, was called to speak and stated his support for Councilmember Item #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (02:07:33) Chari Atkinson, a long-time resident of Huntington Beach, Homeless United Huntington Beach (HUHB) Member, and practicing mental health clinician and social worker, was called to speak and shared her support for continuing to build on existing services to address homelessness in Huntington Beach. She reviewed the existing services and noted that Councilmembers do not have to reinvent the wheel, and can expand upon the solid base that already exists. (02:08:24) Amory Hanson was called to speak and stated his support for Councilmember Item #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. He stated his opinion that the Downtown area still requires revitalization, and opening up all of Main Street to traffic is the first step to ensuring easy beach access for everyone. (02:11:05) Oscar Carrillo, Main Street Wine Company Co-Operator in the Third block of Main Street was called to speak and stated his support for removing vehicular traffic for the first three or four blocks of Main Street and re-creating the pedestrian friendly atmosphere that existed with the first response to the pandemic. He asked that Councilmembers not shut down any Downtown outside dining areas until the revitalization plan is ready to be implemented. (02:12:50) Kevin Madden, SMKFLWR, Huntington Beach surf-inspired clothing brand Founder, was called to speak and stated his support for Councilmember Item #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (02:16:01) Ann Palmer, a resident of Huntington Beach for over 30 years, was called to speak and stated her support for Council shutting down public speakers who are focused on vitriolic hate speech, defamation of character, or spreading biased information that may not even be true. (02:19:18) Adam Wood, representing the Building Industry Association (BIA) of Orange County, was called to speak and directed his comments to Councilmember Items #26 regarding updating and developing objective 97 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 9 of 23 standards for development within the City. He stated he is available to discuss potential options and share the experiences of other municipal jurisdictions. (02:21:16) Rich Jardine, Main Street business owner, was called to speak and stated his support for Councilmember Items #23 regarding the request to end expanded outdoor dining and retail on Main Street and nearby areas in Downtown. (02:22:24) Bruce Wareh was called to speak and stated his support for the comments of Oscar Carrillo regarding removing vehicular traffic for the first three or four blocks of Main Street and re-creating a pedestrian friendly atmosphere. He also shared his opinion that any plan for area revitalization should follow the wishes of a majority of the affected businesses. (02:25:49) Roger Noor was called to speak and encouraged Council to take their time to review and understand budget related items, specifically Administrative Items #18 regarding resources used to address homelessness and enforcement of City and State laws relating to homelessness. (02:29:01) Byron Costa, not a resident of Huntington Beach, was called to speak and stated his support for allowing public speakers more than just three minutes for their comments. He shared various headlines about Huntington Beach and suggested that Council focus on cleaning up corruption in Huntington Beach. (02:32:17) Linda Kraemer was called to speak and stated her support for utility competition and encouraged sustainability and protecting the environment. She stated her opinion that a vote should be delayed for Administrative Items #19 regarding Orange County Power Authority (OCPA) default energy product rate to fully evaluate all the options. (02:35:46) Caller Robert Banzett, a resident of Huntington Beach, was invited to speak and stated his opposition to Ordinances for Introduction #21 regarding Ordinance No. 4277 relating to anonymous complaints. He asked for further consideration of potential consequences to eliminating anonymous complaints and encouraged further study on other ways to cut down on frivolous complaints. (02:39:11) Caller Jordon R., representing Jamba Juice Downtown, was invited to speak and stated her support for Councilmember Items #23 regarding request to end expanded outdoor dining and retail on Main Street and other nearby areas in Downtown. (02:40:41) Caller Ada Hand was invited to speak and referenced the letter the City received from the California Department of Housing and Community Development (HCD) regarding non-compliance with Regional Housing Needs Assessment (RHNA) for affordable housing. She also stated her opposition to returning to pre-pandemic procedures for City Council meetings, and asked that the option to participate via Zoom be continued. She also encouraged attendance at the Mobile Home Advisory Board meeting on Monday, January 23, 2023, at 5 PM at City Hall, which can also be accessed via Zoom. (02:41:30) Caller Mark Sheldon, a 30-year plus resident of Huntington Beach, was invited to speak and stated his support for utility citizen choice and asked that Council be aware how their decision on Administrative Items #19 regarding Orange County Power Authority (OCPA) default energy product for Huntington Beach will impact the OCPA. Mr. Sheldon also shared his opinion that the Air Show environmental review should follow the standard policy implemented for any other required environmental review. He also stated support for continuing the option to attend Council meetings via Zoom. (02:43:38) 98 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 10 of 23 Caller Emily Grant, Southern California Gas Senior Public Affairs Manager, was invited to speak and noted that several factors beyond their control are going to increase January 2023 gas prices to at least double what they were in January 2022. She further explained ways to reduce gas usage and access Southern California Gas assistance programs. (02:46:58) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS Mayor Strickland reported his appointment of Lisa Lane-Barnes to the Community and Library Services Commission, and Michelle Schuetz to the Investment Advisory Board. Councilmember Bolton reported her appointment of Gigi Jackson to the Citizen's Participation Advisory Board. AB 1234 REPORTING — None OPENNESS IN NEGOTIATION DISCLOSURES Councilmember Kalmick reported meeting with the Police Officers' Association (POA). CITY MANAGER’S REPORT 9. 22-695 Welcome to New OneHB Team Members City Manager Al Zelinka identified seven new OneHB team members in the following departments: Community and Library Services (2); Finance (1); Community Development (1); Police (2); and Public Works (1). 10. 23-025 Update on Downtown Street Closure On December 20, 2022, Council directed a pause for Downtown Main Street plans, asked that the community be re-engaged, and for staff to report back in February. City Manager Zelinka stated that currently staff from various departments are engaging community feedback, and are planning a community meeting at the Main Street Library in early February, followed by a preliminary report. In early March, staff will provide a more comprehensive report including new survey results with the expectation that Council will provide further direction at that time. CITY TREASURER’S REPORT 11. 22-916 Adopted Resolution No. 2023-03 approving the 2023 Investment Policy City Treasurer Alisa Backstrom presented a PowerPoint communication entitled City of Huntington Beach Investment Policy Statement Updates for 2023, including a slide titled: 2023 Investment Policy Updates. Councilmember Burns confirmed with City Treasurer Backstrom that Council is only voting tonight on whether to approve these investment category changes. City Treasurer Backstrom noted that each month she provides an updated report to Council on actual investments. 99 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 11 of 23 A motion was made by Strickland, second Van Der Mark to adopt Resolution No. 2023-03, "A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy 2023." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None CITY ATTORNEY’S REPORT 12. 23-041 Air Show Environmental Review City Attorney Gates shared that the process of identifying a firm to conduct an environmental review has started, and provided comments on firm experience and finding the right fit. Staff will return with a specific plan and engagement contract for Council review. CONSENT CALENDAR Councilmember Moser pulled #14, and Councilmember Bolton pulled #17 for further discussion. Office of City Clerk 13. 22-1125 Approved and Adopted Minutes as Amended by Supplemental Communication A motion was made by Bolton, second Burns to approve and adopt the City Council/Public Financing Authority regular meeting minutes of December 6, 2022, as amended by Supplemental Communication; and, 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. The motion as amended by supplemental communication carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 14. 22-792 Conducted an Annual Review of the City Code of Ethics Councilmember Moser pulled this item to state her personal appreciation for this document, and she encouraged everyone to abide by this Code of Ethics and show respect for each other. A motion was made by Moser, second Strickland to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 100 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 12 of 23 15. 21-385 Adopted Resolution No. 2023-01 Amending the Conflict of Interest Code A motion was made by Bolton, second Burns to adopt Resolution No. 2023-01, "A Resolution of the City Council of the City of Huntington Beach Amending its Conflict of Interest Code," as amended by Supplemental Communication. The motion as amended carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None Finance Department 16. 23-018 Adopted 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 motion was made by Bolton, second Burns to 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')." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None Police Department 17. 22-1114 Approved Use of Volunteer Release & Waiver of Liability Agreement Councilmember Bolton pulled this item to clarify with Police Chief Parra that the personal details related to a volunteer's address, phone number or email will not be publicly released, but is retained for staff use as needed. A motion was made by Bolton, second Strickland to approve staff recommendation that City Council approve use of the Volunteer Release & Waiver of Liability Agreement (Attachment) as drafted and approved by the City Attorney. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 101 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 13 of 23 ADMINISTRATIVE ITEMS 18. 23-028 Tabled action to receive and file the comprehensive report on City resources used to address homelessness and approve proposed 90-day plan to enforce City and State laws relating to homelessness Police Chief Eric Parra and Lieutenant Bryan Smith presented a PowerPoint communication entitled City Services to Address Homelessness with slides titled: Background, Homelessness Team, Navigation Center: Occupancy Rate, Navigation Center: Client Data, Navigation Center: Exit Data, Navigation Center: Cost Data, Be Well OC In HB: Client Data, Be Well OC In HB: Client Data & Cost, County of Orange Initiatives, Police Department Proposed 90-Day Plan, Current Efforts, Proposed Community Engagement Plan, Proposed Community Engagement Plan, and City Services to Address Homelessness. Councilmember Burns confirmed with Chief Parra that Deputy Director, Homeless & Behavior Health Services Jason Austin prepared the report that was presented. Councilmember Burns and Chief Parra discussed the value for having lights and sirens on trucks that are used to collect excess property when a homeless individual is arrested. Discussion continued to clarify unduplicated number of individuals served and total bed nights; number of deaths at the Navigation Center; and confirmation the Fire Department received 281 calls for service to the Navigation Center since it opened. Councilmember Burns shared his opinion that success for this program should be defined as fewer people living on the streets, and the Navigation Center serving fewer people as time goes on. Councilmember McKeon requested that Deputy Director Jason Austin come to a follow-up meeting as he has the knowledge to clarify the questions regarding staffing numbers and costs, confirm services that the County currently offers, who is paying for the volunteer program, describe what outreach workers do, details on contact numbers, proper utilization of private sector and faith-based organization services, proper segmentation of data, details for Mercy House services, as well as clarification on services provided at the Navigation Center vs Be Well OC, including hours and dates of services. Councilmember McKeon asked Chief Parra to provide a wish list of priorities for the $500k request, and asked if all of that funding needs to be available at one time, or is it possible to spread out over several years. Mayor Pro Tem Van Der Mark asked if data distinguishes between transient and homeless; noted that the State will be cutting back on funds for Permanent Local Housing Allocation (PLHA) services and asked for clarification on the impact that will have for Huntington Beach going forward; wants to see more details on no camping and no loitering enforcement; and discussed with Chief Parra what could be accomplished with approval of the $228,450 for overtime costs. Mayor Pro Tem Van Der Mark shared her concerns regarding people who are on illegal substances that are admitted to the Healing Center, and Lieutenant Smith explained the procedures are constantly being monitored and adjusted as necessary. Councilmember Moser stated that many Navigation Center residents have some type of substance abuse disorder and confirmed with Lieutenant Smith that any illegal substances that are collected by Security staff are securely stored and Huntington Beach Police Officers collect and ensure it is properly disposed of. Councilmember Moser stated her opinion that multiple study sessions will be required to fully understand the data and provide proper transparency. She clarified that what is being referred to as 102 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 14 of 23 Former Chief Handy's 90-day Plan, was in fact an educational outreach plan for the 90-day period prior to opening the Navigation Center. Councilmember Moser described many of the efforts that Huntington Beach has implemented the last several years to address homelessness, and suggested that staff provide a detailed report on all of the funding and service sources being utilized. She also noted that there needs to be a way to include the efforts of department, community and County organizations for complete data collection, while being cognizant of required privacy standards. Councilmember Moser would like to know what it costs to keep someone in jail per night vs. the cost of a night in the Navigation Center vs. the cost of a call for service. She further noted the importance of evaluating specific metrics to help determine which efforts are successful. She defined success is when homelessness is rare, brief and non-recurring. Councilmember Moser noted that Homeless Management Information System (HMIS) data access is only available for programs that utilize non- uniformed people and caseworkers. She stated support for continuing to engage private partnerships in moving forward, and stated that real, informed and comprehensive discussions are needed to reach the mutual goal. Mayor Strickland confirmed that traditionally the county has been responsible to address homeless issues, and Huntington Beach has spent approximately $20M for 162 housed people. Mayor Strickland asked if it might make sense for the City to consider providing funding for the non-profits who may be more efficient in providing services. He also stated that he believes much more information is needed before there is an action item to consider. Mayor Pro Tem Van Der Mark clarified that this item is directed at enforcement of City and State laws related to homelessness, that success for her will benefit all residents and businesses, and stated the effort requires much more than just helping the homeless. Councilmember McKeon noted the real question is how to best recover the City's public space for its intended use, and Police Chief Parra described some of the efforts moving forward to do that. Councilmember McKeon asked to table this item until Deputy Director Austin can be available to provide details along with Police Chief Parra. It was also suggested that Chief Parra's ordinances addressing issues related to Park and Downtown regulations be Agenda Action items for the same date as the Study Session discussion. A motion was made by McKeon, second Van Der Mark to receive and file this report; and, approve the proposed 90-Day Plan and appropriate one-time funding of $500,000 in the FY 2022/23 General Fund budget table item and return to Council with a comprehensive report that addresses questions and concerns shared by Council, to be presented at a future Study Session with additional staff present to address the questions raised. A substitute motion was made by Moser, second Kalmick to receive and file this report; and, approve the proposed 90-Day Plan and appropriate one-time funding of $500,000 in the FY 2022/23 General Fund budget table item and return to Council with a comprehensive report that addresses questions and concerns shared by Council, to be presented at a Study Session held on either February 21 or March 7; and request for additional briefings from staff. The substitute motion carried by the following roll call vote: 103 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 15 of 23 AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 19. 23-042 Selected Option (C) for Huntington Beach’s Orange County Power Authority (OCPA) Default Energy Product Rate, and Option (C) for City of Huntington Beach’s Municipal Accounts Rate Assistant City Manager Travis Hopkins presented a PowerPoint communication entitled Consideration of OCPA Default Rate Selection and City Municipal Account Rate Selection (2) outlining the historical timeline of actions taken from the time of Council approval to join OCPA; 2023 Rates; Recommended Action; and City Council Options. Councilmember Kalmick shared his concern that Council may run afoul of the environmental document passed as part of the Greenhouse Act Reduction Program in the General Plan. He noted that under California Environmental Quality Act (CEQA) Huntington Beach would not meet the State greenhouse gas reduction goals with this proposed change. He also suggested a more detailed review of the City's costs where he believes there are areas where the OCPA 100% renewable rates are actually cheaper than Edison's rates. A motion was made by McKeon, second Burns to take no action. The current, default energy offering of 100% Renewable will remain for all new OCPA customers; select the Smart Choice option (at least 69% renewable energy) as the default offering for new OCPA customers; or select C), the Basic Choice option (at least 38.5% renewable energy) as the default offering for new OCPA customers, and take no action, and retain the current energy offering of 100% Renewable for municipal accounts; select Smart Choice (at least 69% renewable energy) for municipal accounts; or select C), the Basic Choice (at least 38.5% renewable energy) for municipal accounts. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton ORDINANCES FOR INTRODUCTION 20. 23-012 Approved for Introduction Ordinance No. 4276 Amending Chapter 2.07 of the HBMC Relating to Campaign Reform City Attorney Michael Gates introduced this item by noting that on December 20, 2022, Council directed him to return with an ordinance amending Chapter 2.07 of the Municipal Code that sets Huntington Beach campaign contribution limits to track State limits. Councilmember Kalmick stated it is extremely unusual that there is no staff report or professional analysis for this item. He added there is no clarification as to which "State" limits this refers to. Councilmember Bolton stated she cannot support this item because it is not a very direct way to handle the issue of controlling independent expenditure Pacs for local elections. 104 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 16 of 23 A motion was made by Strickland, second Van Der Mark to, after the City Clerk reads by title, 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." The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton 21. 23-017 Approved for Introduction Ordinance No. 4277 Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to Anonymous Complaints City Attorney Michael Gates introduced this item by stating that on December 20, 2022, Council directed him to provide an ordinance amending Chapter 1.18 of the Huntington Beach Municipal Code to ban anonymous complaints against businesses for alleged municipal code violations. Councilmember Kalmick stated he cannot support this item because no staff analysis or professional opinions were included. He also noted that a letter received by the American Civil Liberties Union (ACLU) about this issue was not presented and discussed. City Attorney Gates responded that he had commented on the ACLU letter at the last meeting, and added that he had met with the bargaining unit and alleviated their concerns that were based on a misconception. He also noted that the most recent meet and confer correspondence relates to another issue. Councilmember Kalmick stated appreciation for this additional information and suggested it would have been helpful to receive that information in a Supplemental Communication. He asked if any City employee making a report will have to provide their personal contact information, and City Attorney Gates clarified that by just having their name, it will be possible to follow up for more information if needed. City Attorney Gates further clarified this ordinance is only about alleged business municipal code violations, not about ABC license infractions, or State penal code violations. Councilmember Bolton asked for further clarification, and City Attorney Gates clarified that if Officer "Tom" reports anything to Code Enforcement, that is not an anonymous report. However, if someone calls in a report, or fills out an on-line form that does not include identifying information, they are anonymous. City Attorney Gates also explained that if a case actually goes to court, he cannot present anything that was submitted anonymously, and noted it is extremely helpful for the chain of custody, for authentication, and providing a foundation for the evidence. Councilmember Bolton stated it would be helpful to see some type of analysis as back up for this item to help everyone better understand the purpose. A motion was made by Strickland, second Burns to, after the City Clerk reads by title, 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." The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns 105 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 17 of 23 NOES: Kalmick, Moser, and Bolton COUNCILMEMBER ITEMS 22. 23-038 Approved Item Submitted by Mayor Strickland — Develop a proposal for a Public Memorial honoring Don Andrews McAllister A motion was made by Strickland, second Van Der Mark to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 23. 23-049 Approved Item Submitted by Mayor Pro Tem Van Der Mark As Amended — Request to End Expanded Outdoor Dining and Retail on Main Street and other nearby areas in Downtown Mayor Pro Tem Van Der Mark introduced this item by describing actions taken by City Council to support businesses in the Downtown and nearby areas during the pandemic. She noted the pandemic measures are no longer warranted, and the situation is currently causing an increase in transient occupation, and an increase in health and safety concerns. Councilmember Kalmick acknowledged that some businesses were short-changed because Council failed to get better policies for the Downtown area during the pandemic. He further added that from his perspective the issues listed in the item are actually fixable. He asked why the City would want to subsidize private vehicle storage on public property by adding parking meters back, and stated there is not one solution that will make everyone happy. He also stated he does not see a path forward with this item, but rather a move backward, and suggested it would be more appropriate to include basic standards for moving forward. Mayor Strickland explained that this item is only intended to restore pre-pandemic conditions while the long-term goals are being reviewed. Councilmember Moser stated her support for Councilmember Kalmick's comments on this issue. She confirmed with Community Development Director Ursula Luna-Reynosa that the California Coastal Commission (CCC) and Alcohol Beverage Control (ABC) post-pandemic changes are expected to be in place 365 days after the Governor's state-of-emergency ends, or February 23, 2024. Director Luna- Reynosa also noted that the CCC has already advised San Diego to immediately replace any lost parking that resulted from outdoor dining expansions. Councilmember Moser noted that if this plan to return to pre-pandemic conditions is implemented it could potentially mean employee lay-offs for some businesses. She suggested that another option could be to focus on efforts to make the Downtown area more consistent by asking staff to create some design standards to improve the area fairly quickly for the upcoming spring and summer season. 106 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 18 of 23 Councilmember Moser also stated support for charging those businesses that have expanded outdoor dining space. Mayor Pro Tem Van Der Mark noted that when Council closed the Second block of Main Street to vehicular traffic it was announced as a temporary measure, and this item is to show the community that Councilmembers will honor their word. She also provided an overview of the total dollars generated over a period of several years to document the income drop as a result of the removal of parking spaces. An amended motion was made by Van Der Mark, second Strickland to 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 by March 1st. 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. The motion as amended carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton 24. 23-051 Approved Item Submitted by Mayor Pro Tem Van Der Mark — Request to Implement a Managed Hiring Process for Vacant City Staff Positions (with limited exceptions) Mayor Pro Tem Van Der Mark introduced this item by explaining it is a temporary measure intended to allow time for the new Councilmembers to clearly understand the City's fiscal health, which includes staffing levels, associated costs and financial impacts in preparation for making informed decisions in June regarding the 2023/2024 budget. She added this measure will not impact any current employees, and that there will be discussions with the Teamsters to address their concerns. Councilmember Kalmick shared his confusion in that the categories listed appear to cover every department, and asked which specific positions would be held open. He noted the City operates in a fiscally responsible manner and currently has a $17M surplus with every single position budgeted. He also added that the normal budget process, which will take place in the next few months, includes review of staffing levels, vacancies, and the costs of filling vacancies. Councilmember Kalmick stated his opinion that there is no need to implement a hiring freeze, especially when all of the open positions are in the current budget with a surplus. Councilmember McKeon stated his support for temporary prudent action and being good financial stewards, by analyzing open positions to determine how critical and necessary they are. Councilmember Bolton shared her concern about instituting a hiring freeze because of a possible recession and her perception that most Orange County municipalities are struggling to fill staff positions because of a shortage of applicants. She stated her concern regarding the inconsistency of on one hand 107 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 19 of 23 approving a $100,000 annual raise for an elected official without a compensation study, while also implementing a temporary hiring freeze. Mayor Strickland and Councilmember Bolton further discussed the proper process, which usually includes a compensation study, for salary/benefit increases. Councilmember Bolton stated her opinion that if this item is approved it sends a mixed-signal message. City Attorney Michael Gates took exception to any Councilmember disapproving of his most recent increase in salary without a classification and compensation study, when the City Council previously directed that a class and comp study be conducted for almost every staff position, with the exception of the City Attorney. Councilmember Moser stated her opinion that one of the repercussions to a hiring freeze is elevating both staff and community concerns about financial stability, and she further believes the normal upcoming budget process will allow all Councilmembers to get the important answers to the questions listed in this item. A motion was made by Van Der Mark, second McKeon to 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. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton 25. 23-029 Approved Item Submitted by Councilmember McKeon — Request to Repeal Ordinance No. 3907 Related to the City Treasurer’s Role Councilmember McKeon introduced this item by stating that in 2011, a previous City Council removed some of the elected City Treasurer's responsibilities, and this item will restore those duties in allegiance with City Charter Section 311. Councilmember Kalmick asked for clarification since the 2011 ordinance was not attached to this item for review. Mayor Strickland stated that the City Treasurer had specific powers, and noted that when a Chief Financial Officer (CFO) was hired some of those powers went to the CFO. Councilmember Kalmick stated he spoke to a former Councilmember involved in the 2011 action who noted that move was made as a cost savings measure, and asked City Treasurer Backstrom why she did not bring this item forward herself. City Treasurer Backstrom responded she has brought this to every City Manager since 2016, and the current City Manager and City Attorney agree that Ordinance 3907 108 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 20 of 23 was actually in opposition to the Charter and is therefore incorrect. She clarified there is no change to the Charter, and this is only an attempt to ensure the City Charter is being followed. Councilmember Kalmick agreed there cannot be an ordinance that conflicts with the City Charter. He stated this will include changes to the job role, requested the staff report include those impacts, and expected costs. City Manager Al Zelinka confirmed the staff report will include how the reorganization will occur and related financial implications, and noted the process will require a meet and confer to address bargaining partner concerns. A motion was made by McKeon, second Burns to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 26. 23-043 Approved Item Submitted by Councilmember McKeon — Request to Update and Develop Objective Standards for Development within the City Councilmember McKeon introduced this item by explaining that many standards are currently subjective and this item is to update standards for development within the City, including Municipal Code, Zoning, Building and Fire Codes to reflect improved objective standards to protect health and safety for all projects going forward. Councilmember Kalmick, speaking as a former Planning Commissioner, asked for clarification on what would appear to be an extensive process. Councilmember Kalmick and Community Development Director Ursula Luna-Reynosa discussed whether removing “alternate means and methods” and specifically targeting multi-family housing could be a barrier to housing, and possibly create issues with California Department of Housing and Community Development (HCD). Director Luna-Reynosa noted that local amendments can be made to the California Building Code for special circumstances, but expects the alternative means and methods part cannot be amended, and added she does not know what could be a trigger for HCD. Councilmember Kalmick stated he would like to have some specific codes included in this item. Councilmember McKeon explained that if this item were approved, a consultant would report back with specific objective standards that may include removing or tweaking “alternative means and methods”. He added that this item is only intended to move the process forward by asking staff to select a consultant and bring it back for Council approval. Councilmember Kalmick asked that with the work staff is already doing with SB 6 if it is possible to also piggyback AB 2011. A motion was made by McKeon, second Strickland to 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 109 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 21 of 23 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 27. 23-044 Approved Item Submitted by Councilmember Burns — Review of City Owned Oil Well Operation and Production Councilmember Burns introduced this item as an effort to determine the status and income produced by City-owned oil wells, and determine if it is in the City's best interest to keep them productive, lease them, or get rid of them. A motion was made by Burns, second Kalmick to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 28. 23-045 Approved Item Submitted by Councilmember Burns — Appointments to Boards and Commissions Councilmember Burns introduced this item by stating that some boards and commissions are designed to have seven members appointed by the seven Councilmembers. He noted that some previous boards or commissions had been combined which resulted in more than seven members, and stated this item is to ensure that all Councilmember boards and commissions have seven members to ensure efficiency. Councilmember Kalmick explained that these advisory boards do not make policy decisions, and noted that more than seven members were kept with consolidations. A motion was made by Burns, second Strickland that any Councilmember with more than one appointee to a Board or Commission will need to select a single appointee moving forward. Any one Board Member or Commissioner, who is not selected by the Council Member, will be excused. This is intended to provide more efficient Boards and Commissions 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. 110 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 22 of 23 The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton 29. 23-046 Approved Item Submitted by Councilmember Burns As Amended — Finance Commission Councilmember Burns introduced the item by describing some Finance Commission restrictions implemented by a former City Council, and stated he is asking that the City Manager facilitate monthly Finance Commission meetings to review, analyze and consider the accountability, honesty, integrity, fiscal sustainability, community involvement and openness of the City's financial obligations. Councilmember McKeon provided an amendment to include that Finance Commission meetings are to be held in Council Chambers. Councilmember Bolton shared her concern that this item appears to place the Finance Commission in a policy-making role, however the City Charter stipulates that only the City Council have a policy-making role. She also noted there is no mandate with qualifications to serve, and added that financial audits, per the City Charter, are to only be conducted by professionals with no interest in City finances. Councilmember McKeon explained that he was a Finance Commissioner when restrictions were implemented and meetings changed to quarterly, and noted it actually hindered independent review and recommendations. He confirmed with City Manager Zelinka that the Finance Commission does not have the authority to obligate funding for an audit. City Manager Zelinka added that last November Council approved departmental financial and performance audits and noted Council can help define what those audits include. It is expected that the Finance Commission would review those audits to provide feedback before Council action. City Manager Zelinka also noted that with the current skeletal Finance Department staff, there may have to be a discussion on staffing demands to produce the required reporting. Councilmember Moser confirmed with Councilmember Burns that the Finance Commission would continue to operate as an advisory body and act as a team, which would prevent one Finance Commissioner from independently presenting any item. Councilmember Kalmick explained the Finance Commission was changed because they were asking for department audits that required massive staff time, therefore Council required that their requests and recommendations be put on the Agenda for Council approval, and Finance Commission meetings were changed to quarterly for budget and financial policy reviews. He stated he sees this item as requiring an enormous amount of staff time considering having just approved a hiring freeze. Councilmember Kalmick also stated he sees this item as too vague and dangerously over political, and noted that this item "directs" the City Manager to update Municipal Code, which he cannot do. Councilmember Burns noted that the intent is to utilize the expertise of the Finance Commissioners to serve the City. City Attorney Michael Gates clarified that he will work with the City Manager to bring back a proposed modification for Council consideration. 111 Council/PFA Regular Minutes Successor Agency Special Minutes January 17, 2023 Page 23 of 23 A motion was made by Burns, second Strickland to 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, as amended to include Finance Commission monthly meetings are to be held in Council Chambers. The motion as amended carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton ADJOURNMENT — at 10:52 PM a motion was made by Strickland with a second by McKeon, to adjourn to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on 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 _______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority and Successor Agency of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 112 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-115 MEETING DATE:2/7/2023 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: Adopt Resolution No. 2023- 07 appointing Theresa St. Peter as Interim Director of Human Resources and approving the Employment Agreement Statement of Issue: The City is in the process of conducting a recruitment to fill the Director of Human Resources vacancy created by the resignation of the former Administrative Services Director on January 3, 2023. On December 20, 2022, the City Council approved the reorganization of the Administrative Services Department into separate Human Resources and Information Services Departments. The City Manager recommends the City Council appoint Theresa St. Peter as Interim Director of Human Resources until the recruitment process for a permanent Director concludes. Financial Impact: No additional funding is requested. Funding is included in the FY 2022-23 budget. Recommended Action: A) Adopt Resolution No. 2023-07 , “ A Resolution of the City Council of the City of Huntington Beach Appointing Theresa St. Peter as Interim Director of Human Resources”; and, B) Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Theresa St. Peter.” Alternative Action(s): Do not approve the Recommended Action, and direct staff to present an alternative solution. Analysis: On December 20, 2022, the City Council approved the reorganization of the Administrative Services Department into separate Human Resources and Information Services Departments. The reorganization was in response to the resignation of the Administrative Services Director on January City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™113 File #:23-115 MEETING DATE:2/7/2023 3, 2023 and to help meet the growing, complex demands of each operation. As such, the City is conducting a recruitment to fill the position of Director of Human Resources; in addition, Deputy Director of Administrative Services, John Dankha, is currently serving as Acting Chief Information Officer for the Information Services Department. To maintain the integrity of the City’s services and to provide executive support to the Human Resources Department, it is recommended that the City Council approve the appointment of Theresa St. Peter to serve as the Interim Director of Human Resources through the conclusion of the recruitment process. The adoption of Resolution No. 2023-07 and the execution of St. Peter’s employment agreement is required by CalPERS for employment of retired annuitants at the Department Head/Executive level pursuant to Government Code Section 21221(h). St Peter has nearly 30 years of experience in Human Resources including employment for Southern California public agencies, interim positions, and HR Consultation. The recruitment to fill the position is anticipated to be filled by June or July of this year. The hourly compensation for the position of Director of Human Resources in the Non-Associated Range NA 0269, at $108.03 per hour with no City-provided benefits. The interim appointment of Theresa St. Peter is compliant with California Government Code Section 21221 (h). 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: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2023-07 2. Theresa St. Peter Employment Agreement 3. Theresa St. Peter Resume City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™114 115 116 117 118 119 120 1 Theresa St. Peter 8527 Calle Carabe Street Rancho Cucamonga, CA 91730 909-518-9463 cell tmstpeter@gmail.com EMPLOYMENT HISTORY HR Consultant – City of Alhambra October 2022 to date Interim HR/RM Director – City of Pomona August 2022 – September 2022 Interim Senior HR Manager – City of Ontario August 2020 –August 2022 HR Consultant – April 2020 to date Interim HR Director – City of Alhambra February 2018 – April 2019; June 2019 - March 2020 Interim HR Director – City of San Gabriel March 2017 – December 2017 Interim HR Manager – City of San Clemente January 25, 2016 – June 17, 2016 HR Consultant – City of San Clemente August 2015 – January 2016 WC Consultant – San Bernardino City Unified School District August 2015 – December 2015 Interim Director of HR/RM - City of Azusa March 2014 – March 2015 Interim HR Administrator – Chino Valley Fire District July 2013 – March 2014 Interim HR Director – City of West Covina September 2011 – March 2013 Director of Human Resources City of Monrovia & Risk Management 415 S. Ivy Avenue July 1993 – June 30, 2011 Monrovia, CA 91016 Recruitment and selection of all City employees and volunteers Employee Relations Benefits Administration Employee Training and Development Workers’ Compensation Liability and Risk Management EDUCATION Bachelor of Arts Degree in Psychology – California State University, Fullerton Master of Arts Degree in Public Administration with an emphasis in Human Resources – California State University, Fullerton 121 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-014 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL / HOUSING AUTHORITY ACTION SUBMITTED TO:Honorable Mayor and City Council Members / Honorable Chairman and Board Members SUBMITTED BY:Al Zelinka, City Manager / Executive Director VIA:Ursula Luna-Reynosa, Director of Community Development PREPARED BY:Charles Kovac, Housing Manager Subject: Bonanni Development Company IV, LLC Affordable Housing Agreement for the development of 35 ownership units at 19070 Holly Lane Statement of Issue: It is recommended that the City Council approve an Affordable Housing Agreement (“Agreement”) by and between the City of Huntington Beach (“City”) and Bonanni Development Company IV, LLC (“Developer”) associated with the previously approved development of a 2.11-acre site located at 19070 Holly Lane (“Project”). The Project consists of thirty-five (35) attached townhomes, of which, this Agreement will restrict five (5) units for moderate-income households for a period of 45 years. Financial Impact: Not applicable. Recommended Action: A) Approve the Affordable Housing Agreement by and between the City and Bonanni Development Company, LLC for the development of 35 ownership units at 19070 Holly Lane; and, B) Authorize the City Manager or their designee to implement and execute the Affordable Housing Agreement for the Project, including all necessary related documents; and, C) Authorize the City Manager to execute an amendment to the Affordable Housing Agreement, as prepared by the City Attorney, should the Developer upon completion of the Project decide to rent instead of sell the townhomes due to market conditions; and, D) Authorize the Housing Authority Executive Director or their designee to execute all necessary implementing agreements and related documents. Alternative Action(s): The recommended Agreement was prepared by the City Attorney’s office pursuant to state and local regulations. The Project complies with Density Bonus Law (Government Code Section 65915) andCity of Huntington Beach Printed on 2/1/2023Page 1 of 4 powered by Legistar™122 File #:23-014 MEETING DATE:2/7/2023 regulations. The Project complies with Density Bonus Law (Government Code Section 65915) and Huntington Beach Zoning and Subdivision Ordinance, Chapter 230.14(B)(4), and the Agreement ensures the Project will comply with applicable requirements. For this reason staff does not recommend any alternatives. Analysis: The approved Project will redevelop a primarily vacant 2.11-acre site located at 19070 Holly Lane at the southwest corner of Main Street and Garfield Avenue with 35 attached townhomes. All of the townhomes will range from 1,300 square feet to 1,865 square feet, be three stories in height (under the maximum permitted height of 40 feet), and will have either two or three bedrooms with attached two-car garages. The Project is consistent with the Holly-Seacliff Specific Plan and will maintain the residential character of the area. On May 24, 2022, the Developer received approval from the Planning Commission for the Project application (Attachment 2) consisting of the following: 1) General Plan Amendment (GPA) No. 20-003 to change the property General Plan designation from Commercial Neighborhood-Specific Plan Overlay to Residential Medium Density-Specific Plan Overlay; 2) Zoning Text Amendment (ZTA) No. 20-003 to change the zoning designation from Commercial to Residential Medium Density; 3) Tentative Tract Map (TTM) No. 19118 to consolidate 12 separate lots into one lot; 4) Conditional Use Permit (CUP) No. 20-025 to develop 35 three-story attached townhomes; and 5) Environmental Assessment No. 20-003, consisting of an Addendum No. 1 to the Holly-Seacliff Specific Plan Environmental Impact Report No. 89-1 (EIR) to analyze the potential environmental impacts of the proposed Project. On June 21, 2022, the City Council approved the GPA, ZTA, and Environmental Assessment No. 20-003 to the EIR. The Developer has requested a ten percent (10%) density bonus for the Project pursuant to California Government Code Section 65915 (the “Density Bonus Law”). Under Density Bonus Law, the approved Project will consist of thirty-two (32) base residential units and three (3) density bonus units, for a total of thirty-five (35) units. In exchange for the increase in allowable density, the Developer must ensure that, pursuant to the terms of the Agreement, no less than five units will be affordable for moderate-income households as defined in Health and Safety Code Section 50093. Pursuant to State Density Bonus Law, developers of housing projects that include specified levels of affordable housing are entitled to apply for and receive up to four different benefits. These include 1) an increase in density, 2) concessions, 3) waivers, and 4) reduced parking requirements. A concession is an exception from an otherwise applicable development standard that results in cost savings for the project. A waiver is an exception from a development standard that would physically preclude the project from being built (Government Code Section 65975(e)(1) provides that a city may not apply a development standard that would have the effect of physically precluding the construction of the density bonus units at the density permitted under Density Bonus Law). In exchange for providing five units of the 32 total base units affordable to moderate-income households, the Developer is eligible to receive up to one concession and unlimited waivers. The Developer did not request a concession and is utilizing two waivers to existing development standards: 1) 15-foot front yard setback, as the approved Project consists of a 10-foot yard setback along Holly Lane; and 2) 20-foot building separation, as the approved project consists of 15-16 feet separation of the onsite buildings. Imposing these two standards would have physically preclude the City of Huntington Beach Printed on 2/1/2023Page 2 of 4 powered by Legistar™123 File #:23-014 MEETING DATE:2/7/2023 separation of the onsite buildings. Imposing these two standards would have physically preclude the construction of the density bonus units. As authorized pursuant to Density Bonus Law, the Project is eligible for parking requirements calculated in accordance with Government Code Section 65915(p); two-bedroom and three-bedroom units are required to provide one a half onsite parking spaces per unit. The proposed Project provides 82 parking spaces, which is 18 spaces less than required by the City’s parking standards but 29 more parking spaces than required by Density Bonus Law. In order to be eligible for the waivers and parking reduction described above, the Developer must ensure that five units of the total 32 base units remain affordable to moderate-income households for 45 years. The proposed Agreement memorializes this requirement, and covenants implementing the Agreement will be recorded on the property title ensuring that five units will be owned and occupied by moderate- income households, as defined in Health and Safety Code Section 50093, for 45 years. The Developer will build the Project in a multiple phases and sell individual units to eligible homebuyers. The maximum moderate-income sales prices for the five units will be set in accordance with the Agreement. The proposed Agreement included in Attachment 1 was prepared by the City Attorney’s Office and is consistent with Density Bonus Law and the Holly-Seacliff Specific Plan. Currently, the Developer anticipates selling the individual units in accordance with the terms and conditions set forth within the Agreement. However, due to future housing market uncertainties as it relates to potentially higher interest rates and a softening real estate market that may hinder the ability for the Developer to sell the units, the Developer has requested the option to rent the units, including both the market rate and affordable units, until such time that the housing market supports converting the Project back to home ownership. Should the City Council approve this option, the Developer may make this request prior to completion of construction and the sale of any units. The City Attorney would then prepare an amendment to the Agreement incorporating the necessary provisions for a rental project for execution by the City Manager. Upon completion of the Project and occupancy of the affordable units, the Housing Authority will administer and oversee the implementation of the five moderate-income affordable units to ensure that the affordability covenants remain in place throughout the duration of the 45-year term. Environmental Status: The City certified Program Environmental Impact Report (EIR) No. 89-001 for the Holly-Seacliff Specific Plan in 1990, which evaluated environmental impacts associated with development approved as part of the Specific Plan. The Holly-Seacliff Specific Plan identified the subject property as a Commercial (C) land use and the EIR evaluated environmental impacts associated with up to 117,612 square feet of commercial uses on the property. The EIR provides the environmental setting and analysis to serve as the first-tier California Environmental Quality Act (CEQA) document for the proposed Project. Although the Holly-Seacliff Specific Plan considered the impacts of commercial development on the subject property, a residential use (such as the proposed Project) would result in a less intense project than what was evaluated under the EIR, and therefore would not result in new significant impacts or an increase in the severity of a previously identified impact in the EIR. The Project will also be required to comply with City standards and existing mitigation measures outlined in the EIR to City of Huntington Beach Printed on 2/1/2023Page 3 of 4 powered by Legistar™124 File #:23-014 MEETING DATE:2/7/2023 be required to comply with City standards and existing mitigation measures outlined in the EIR to ensure that development of the proposed Project and approval of the GPA, ZTA, TTM, and CUP would not result in an action that requires further evaluation pursuant to CEQA. Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. Affordable Housing Agreement by and between the City of Huntington Beach and Bonanni Development Company IV, LLC 2. Planning Commission staff report for the May 24, 2022 meeting 3. PowerPoint Presentation City of Huntington Beach Printed on 2/1/2023Page 4 of 4 powered by Legistar™125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-440 MEETING DATE:5/24/2022 PLANNING COMMISSION STAFF REPORT TO:Planning Commission FROM:Ursula Luna-Reynosa, Community Development Director BY:Alyssa Helper, Associate Planner SUBJECT: GENERAL PLAN AMENDMENT (GPA) NO. 20-003/ZONING TEXT AMENDMENT (ZTA) NO. 20- 003/TENTATIVE TRACT MAP (TTM) NO. 19118/CONDITIONAL USE PERMIT (CUP) NO. 20-025/ENVIRONMENTAL ASSESSMENT NO. 20-003 (HOLLY TRIANGLE TOWNHOMES) - Continued from May 10, 2022 REQUEST: GPA:To amend the General Plan designation from Commercial Neighborhood- Specific Plan Overlay (CN-sp) to Residential Medium Density-Specific Plan Overlay (RM-sp).ZTA:To amend the existing zoning designation within the Holly -Seacliff Specific Plan (SP9) from Commercial (C) to Residential Medium Density (RM).TTM:To consolidate 12 lots into a 1.80 net acre lot for condominium purposes.CUP:To 1) develop 35 three-story attached townhomes up to 40 feet tall, and 2) allow 43-inch and 6-foot tall walls in lieu of 42-inch walls in the 10-foot front yard setback along Holly Lane and 6-foot tall walls in lieu of 42-inch walls in the 15-foot front yard setback area along Main Street.EA:Preparation of Addendum No. 1 to the Holly-Seacliff Specific Plan EIR No. 89-1 to analyze the potential environmental impacts of the proposed project. LOCATION: 19070 Holly Lane, 92648 (east side of Holly Lane, south of Garfield Avenue) APPLICANT: Chris Segesman, Bonanni Development, 5500 Bolsa Avenue, Suite 120, Huntington Beach CA 92649 PROPERTY OWNER: Bonanni Development, 5500 Bolsa Avenue, Suite 120, Huntington Beach CA 92649 BUSINESS OWNER: Not applicable City of Huntington Beach Printed on 5/19/2022Page 1 of 13 powered by Legistar™196 File #:22-440 MEETING DATE:5/24/2022 STATEMENT OF ISSUE: 1. Are the GPA and ZTA necessary for the changing needs and orderly development of the community and consistent with other elements of the General Plan? 2. Are the proposed GPA and ZTA designations compatible with the surrounding area? 3. Does the project satisfy all the findings required for approval of a ZTA, TTM, CUP, and an EIR Addendum? 4. Is Environmental Assessment No. 20-003 (otherwise referred to as Addendum No. 1 to the Holly-Seacliff Specific Plan EIR No. 89-1) adequate and complete in that it has identified all significant environmental effects of the project? 5. Was the Addendum No. 1 to the Holly-Seacliff Specific Plan EIR prepared in compliance with the California Environmental Quality Act (CEQA) Guidelines? RECOMMENDATION: That the Planning Commission take the following actions: A) Recommend approval of Environmental Assessment No. 20-003 (Addendum No. 1 to the Holly-Seacliff Specific Plan Environmental Impact Report No. 89-1; Attachment No. 7) as adequate and complete in accordance with CEQA requirements by approving draft City Council Resolution No. 22-26 and forward to the City Council for adoption (Attachment No. 2); B) Recommend approval of General Plan Amendment No. 20-003 and forward draft City Council Resolution No. 2022-19 to the City Council for consideration (Attachment No. 3); C) Recommend approval of Zoning Text Amendment No. 20-003 and forward draft City Council Ordinance No. 4256 to the City Council for consideration (Attachment No. 4); and D) Approve Tentative Tract Map No. 19118 and Conditional Use Permit No. 20-025 with findings and suggested conditions of approval (Attachment No. 1). ALTERNATIVE ACTION(S): That the Planning Commission take alternative actions, such as: A) Deny Environmental Assessment No. 20-003, General Plan Amendment No. 20-003, Zone Text Amendment No. 20-003, Tentative Tract Map No. 19118, and Conditional Use Permit No. 20- 005 with findings for denial; B) Continue Environmental Assessment No. 20-003, General Plan Amendment No. 20-003, Zone Text Amendment No. 20-003, Tentative Tract Map No. 19118 and Conditional Use Permit No. 20- 005 and direct staff accordingly. PROJECT PROPOSAL: The applicant is proposing to redevelop an existing 2.11-gross-acre (1.8-net-acre) site with 35 attached townhome units (Attachment No. 5). In order to undertake the project proposal, Bonnani City of Huntington Beach Printed on 5/19/2022Page 2 of 13 powered by Legistar™197 File #:22-440 MEETING DATE:5/24/2022 Development (the “applicant”) requests the following entitlements: ·General Plan Amendment (GPA) No. 20-003 - To amend the land use designation from Commercial Neighborhood-Specific Plan Overlay (CN-sp) to Residential Medium Density-Specific Plan Overlay (RM-sp). ·Zoning Text Amendment (ZTA) No. 20-003 - To amend the existing zoning designation within the Holly-Seacliff Specific Plan (SP9) from Commercial (C) to Residential Medium Density (RM). ·Tentative Tract Map (TTM) No. 19118 - To consolidate 12 existing lots into a 1.8-net-acre numbered lot for condominium purposes. ·Conditional Use Permit (CUP) No. 20-025 - To: 1) develop 35 three-story attached townhomes up to 40 feet tall and 2) allow 43-inch and 6-foot tall walls in lieu of 42-inch walls in the 10-foot front yard setback along Holly Lane and 6-foot tall walls in lieu of 42-inch walls in the 15-foot front yard setback area along Main Street. ·Environmental Assessment No. 20-003: Preparation of Addendum No. 1 to the Holly-Seacliff Specific Plan Environmental Impact Report No. 89-1 to analyze the potential environmental impacts of the proposed project. Background: The project site consists of a small commercial building and an undeveloped surface parking lot. In recent years, the site has been used as a commercial glass shop and a storage lot for a local car dealership. Prior to the adoption of the Holly-Seacliff Specific Plan in 1992, the project site was zoned as Commercial Neighborhood District (C-1) and Medium Density Residential (R2). Following its adoption, the Holly-Seacliff Specific Plan continued to permit Commercial (C) uses on the site but removed Medium Density Residential as an allowable use on the property. Although the Specific Plan removed residential as a permitted use on the subject property, the Specific Plan does allow for a mix of residential, commercial, and industrial uses within the surrounding area (otherwise referred to as Planning Area IV in the Specific Plan). Development surrounding the site is reflective of allowable uses within the Specific Plan and largely consists of residential and commercial uses. Bonanni Development, a partial owner of the site, approached the City in 2020 with a proposal to develop the site with 35 attached townhomes, of which 15 percent will be affordable to moderate income households. In order to develop the site with a residential use, Bonanni is also coordinating with the City of Huntington Beach to purchase a 0.08-acre City-owned parcel on the project site (Assessor’s Parcel Number 159-281-04), which was acquired by the City in 1964 to allow the Standard Oil Company to lay down an oil pipeline. The City-owned parcel is encumbered with a utility easement to the benefit of the Standard Oil Company or their successors. However, because the City has no use for this property, the City plans to dispose of this property as a separate process which would enable the future development of the property and surrounding land. With the exception of two waivers of development standards and a Conditional Use Permit to allow walls exceeding 42 inches within the front yard setback areas along Holly Street and Main Street, development of the project will occur in accordance with the development standards outlined in the City of Huntington Beach Printed on 5/19/2022Page 3 of 13 powered by Legistar™198 File #:22-440 MEETING DATE:5/24/2022 development of the project will occur in accordance with the development standards outlined in the Specific Plan and applicable provisions of the California Density Bonus Law. ISSUES AND ANALYSIS: Subject Property And Surrounding General Plan Designations, Zoning And Land Uses: LOCATION GENERAL PLAN ZONING LAND USE Subject Property:Commercial Neighborhood- Specific Plan Overlay (CN-sp) Holly Seacliff Specific Plan (SP 9; Commercial within SP) Vacant with the exception of one commercial building North of Subject Property (across Garfield Avenue): Residential Medium Density-Specific Plan Overlay (RM-sp) SP 9; Medium Density Residential and Medium High Density Residential within SP Single Family Residences West of Subject Property (across Holly Lane): RM-sp SP 9; Medium Density Residential within SP Multi-Family Residences East and South of Subject Property (across Main Street): RM-sp Residential Medium Density (RM) Multi-Family Residences General Plan Conformance: The applicant is proposing to amend the General Plan land use designation on the site from CN-sp (Commercial Neighborhood-Specific Plan Overlay) to RM-sp (Residential Medium Density-Specific Plan Overlay). The RM-sp designation is an extension of the same designation found on surrounding properties. It allows for single-family detached, single-family attached, and multi-family residential units at densities ranging from 7 to 15 dwelling units per acre. The project would develop the property with townhome units that would be consistent with allowable residential uses in the RM-sp designation. Development of the property with townhome units is also consistent with other residential land uses in the vicinity of the project site, including a series of two-story apartment buildings across Holly Lane to the west, three-story detached homes across Garfield Avenue to the north, and two-story condominium units across Main Street to the east. Development of the project site with a 35-unit townhome project would also be consistent with the following goals and policies in the General Plan: A. Land Use Element Goal LU-1 - New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community. Policy LU-1C - Support infill development, consolidation of parcels, and adaptive reuse of existing buildings. Policy LU-1D - Ensure that new development projects are of compatible proportion, scale and City of Huntington Beach Printed on 5/19/2022Page 4 of 13 powered by Legistar™199 File #:22-440 MEETING DATE:5/24/2022 character to complement adjoining uses. Policy LU-2D - Maintain and protect residential neighborhoods by avoiding encroachment of incompatible land uses. Policy LU-2E - Intensify the use and strengthen the role of public art, architecture, landscaping, site design, and development patterns to enhance the visual image of Huntington Beach. Goal LU-4 - A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected. Goal LU-7 - Neighborhoods, corridors, and community subareas are well designed, and buildings, enhanced streets, and public spaces contribute to a strong sense of place. The project includes a Zone Text Amendment (ZTA) to implement the land use designation proposed as part of General Plan Amendment No. 20-003 and enable the redevelopment of a primarily undeveloped site into a residential community consisting of 35 townhomes. The project also includes Tentative Tract Map (TTM) No. 19118 to consolidate 12 existing lots into a one lot condominium map for the development of the attached townhome units. Redevelopment of the primarily undeveloped site with a residential townhome project and approval of the TTM to consolidate the existing onsite lots into one lot would support the City’s goals and policies aimed at promoting infill residential development. The project will develop the property with three-story townhomes that will exhibit a modern coastal architectural style with elements of farmhouse and coastal design that are in keeping with the proportion, scale, and character of the neighborhood and will add to the range of housing types available in the community. Approval of the ZTA will ensure that the project is consistent with the development standards for RM uses as outlined in the Holly-Seacliff Specific Plan and the Huntington Beach Zoning and Subdivision Ordinance (HBZSO). The project also provides enhanced landscaping areas along each of the three streets that form the site boundaries to enhance existing vehicular and pedestrian connections within the project area. B. Housing Element Policy 1.1 - Preserve the character, scale and quality of established residential neighborhoods. Goal 2 - Provide adequate housing sites through appropriate land use, zoning and specific plan designations to accommodate Huntington Beach’s share of regional housing needs. Policy 2.1 - Provide site opportunities for development of housing that responds to diverse community needs in terms of housing types, cost and location, emphasizing locations near services and transit that promote walkability. Goal 3 - Enhance housing affordability so that modest income households can remain an integral part of the Huntington Beach community Policy 3.1 - Encourage the production of housing that meets all economic segments of the community, including lower, moderate, and upper income households, to maintain a balanced community. City of Huntington Beach Printed on 5/19/2022Page 5 of 13 powered by Legistar™200 File #:22-440 MEETING DATE:5/24/2022 Policy 3.2 - Utilize the City’s Inclusionary Housing Ordinance as a tool to integrate affordable units within market rate developments. Continue to prioritize the construction of affordable units on-site, with provision of units off-site or payment of an in-lieu housing fee as a less preferred alternative. Policy 3.3 - Facilitate the development of affordable housing through regulatory incentives and concessions, and/or financial assistance, with funding priority to projects that include extremely low income units. Proactively seek out new models and approaches in the provision of affordable housing. Policy 3.4 - Explore collaborative partnerships with non-profit organizations, developers, the business community and governmental agencies in the provision of affordable housing. Policy 4.1 - Regulatory Incentives for Affordable Housing Support the use of density bonuses and other incentives, such as fee deferrals/waivers and parking reductions, to offset or reduce the costs of developing affordable housing while ensuring that potential impacts are addressed. The proposed project will develop a mostly vacant, underutilized site with 35 three-story townhomes that will be consistent with the scale and nature of residential land uses surrounding the site. The project would respond to community needs for pedestrian infrastructure adjacent to housing by developing the subject property, which has an existing bus stop on Main Street, with a residential project and constructing a new sidewalk along Holly Lane to serve residents on the site and in the surrounding area. The project will also comply with the Holly-Seacliff Specific Plan’s affordable housing requirement to provide 15 percent of the proposed dwelling units as affordable units because the applicant is providing 5 units for families or households of moderate income. Therefore, approval of the project will accommodate additional housing, including affordable housing, and add to the City’s overall housing stock. Due to the provision of affordable housing, the applicant is entitled to a 10 percent density bonus, one incentive/concession, and an unlimited number of waivers of development standards as permitted by the California Density Bonus Law. The project includes a 10 percent density bonus to allow 16.59 units per gross acre instead of the maximum density of 15 units per gross acre established in the Holly-Seacliff Specific Plan. The project is not requesting any incentives/concessions, but does include waivers of development standards to allow for a reduced front yard setback along Holly Lane (from 15 feet to 10 feet) and a reduced building separation between several of the onsite buildings (from 20 feet to 15- and 16-feet). The density bonus and the requested waivers included as part of the project will serve as mechanism to accommodate additional housing. Please refer to the discussion below for a description of project-related components that are permitted under the California Density Bonus Law. Zoning Compliance: Zone Text Amendment: The ZTA will not affect the overall land use uses or the development standards prescribed for the RM zoning district established in the Holly-Seacliff Specific Plan. The zoning designation for the subject site will remain SP9 (Holly-Seacliff Specific Plan); however, the project includes a ZTA to revise the Holly-Seacliff Specific Plan to allow for Residential Medium Density (RM) uses on the site rather than Commercial (C) uses. Conservatively, the addition of 35 units on the site has been reflected in the overall development capacity for the Specific Plan to ensure consistency with the proposed RM City of Huntington Beach Printed on 5/19/2022Page 6 of 13 powered by Legistar™201 File #:22-440 MEETING DATE:5/24/2022 overall development capacity for the Specific Plan to ensure consistency with the proposed RM designation on the subject property. However, because residential uses developed under the Specific Plan have largely been developed at lower densities than what was permitted under the Specific Plan, the proposed ZTA would be consistent with the overall planned residential development capacity that was envisioned for the Specific Plan area. The proposed RM land use classification will also be consistent with the RM designation for other properties surrounding the site. A community need is demonstrated for the proposed change because it will allow an underutilized site to be redeveloped into a residential project that is consistent with the character of the area and will add to the City’s housing stock. Adoption of the ZTA will also be in conformity with public convenience, general welfare and good zoning practice because residential uses are a more appropriate land use for the site than commercial uses. The site is surrounded by residential uses on all sides and development of a commercial use on the subject property would result in greater impacts to existing residences than development of the proposed residential project. Furthermore, a residential use is more appropriate than a commercial use because the site has been zoned for commercial uses since adoption of the Specific Plan and has yet to be developed with a commercial use outside of the glass shop on the northwest corner. Therefore, adoption of the ZTA will implement the land use designation proposed with General Plan Amendment No. 20-003 and the overarching goals and policies in the Specific Plan, and would result in a land use on the property that is more compatible with the surrounding neighborhood. Tract Map/Site Layout/Compatibility TTM No. 19118 will consolidate 12 existing lots into a one lot condominium map 2.11-gross-acre (1.80-net-acre) site for development of 35 attached townhome units. Access to the site will be provided off Holly Lane to reduce the potential for traffic congestion and vehicular conflicts on Garfield Avenue and Main Street, and to foster a connection with existing residential neighborhoods across Holly Lane. Emergency access will be provided via Holly Lane and an emergency-vehicle- access-only access point off of Main Street. The private streets comply with the City’s standard drive aisle/fire lane width of 24 feet and provide direct access to each unit and its attached garage. The project will provide 82 parking spaces, including 70 spaces within 2-car attached garages associated with each unit and 12 off-street guest spaces. Pedestrian access to the site will be provided by existing sidewalks along Main Street and Garfield Avenue and a new sidewalk to be constructed along Holly Lane. Landscaping will be provided between the 43-inch and 6-foot tall walls and sidewalks along the perimeter of the site to enhance aesthetics and improve pedestrian connections between the site and surrounding areas. The project will also provide common open space areas for use by onsite residents, including the central village lawn area located between Buildings B and C and a turf area with common amenities (e.g., a fire bit, barbeques, and patio furniture) located between Buildings G and E. The applicant has submitted three residential floor plans, all of which are three stories and under 40 feet in height, in compliance with the maximum permitted height of 40 feet. The proposed townhomes would range in size from 1,300 to 1,865 square feet with up to 2 and 3 bedrooms and 2-car attached garages (Attachment No. 5). With the exception of the two waivers of development standards to allow for a reduced front-yard setback along Holly Lane (from 15 feet to 10 feet) and a reduced building separation requirement (15 and 16 feet instead of 20 feet) between several of the onsite buildings, City of Huntington Beach Printed on 5/19/2022Page 7 of 13 powered by Legistar™202 File #:22-440 MEETING DATE:5/24/2022 separation requirement (15 and 16 feet instead of 20 feet) between several of the onsite buildings, the project will comply with all development standards set forth in the Specific Plan. By complying with development standards in the Specific Plan, including building height, lot coverage, and landscaping, the project will be consistent with the overall bulk and scale of existing residential uses in the project vicinity. Furthermore, the project incorporates façade breaks, a variation in the color scheme for each elevation, and roof variations into the design of each plan to minimize overall building mass and scale for each of the proposed units. The proposed units will also be designed in a modern coastal/farmhouse architectural style and will use of durable high quality building materials to enhance the project design and ensure its compatibility with the surrounding area. While residential uses surround the project site on all sides, existing roadways (Main Street, Holly Lane, and Garfield Avenue) and project setbacks (15 feet on Main Street and Garfield Avenue, 10 feet on Holly Lane) provide a sufficient buffer between the proposed uses and existing residential uses in the project vicinity. The design of the subdivision or the proposed improvements will not cause serious health problems or substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat because the site has been previously been disturbed and is void of any wildlife habitat. The site is mostly vacant with the exception of one small commercial building. However, because of the history of oil drilling operations previously occurring on the site, the project includes the reabandonment of two onsite wells and the installation of methane barrier systems under the proposed residences pursuant to City Specification 422 and 429 to avoid any health hazards associated with the oil wells onsite. Furthermore, project design features, compliance with regulatory requirements, and implementation of modified mitigation measures outlined in Environmental Assessment No. 20- 003 (Addendum No. 1 to the Holly-Seacliff Specific Plan Environmental Impact Report [(EIR]) will ensure that the subdivision will not cause serious health problems or substantial environmental damage. The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision unless alternative easements, for access or for use, will be provided. The only existing easement on the property is a private utility easement for the benefit of Standard Oil or its successors and was originally granted to lay down an oil pipeline on the site. This easement will continue to be in place on the property following project implementation. The subdivision will provide all necessary streets, sidewalk, and utility easements to serve the new development. Conditional Use Permit The CUP request to allow for the development of 35 three-story attached townhomes on an approximately 2.11-gross-acre site will improve an existing underutilized site with a residential development consistent with other uses in the vicinity. The proposed development will convey a high level of quality and a character that incorporates quality materials and design, consistent with the Urban Design Guidelines. For example, building volumes are articulated with variation in wall planes to reduce building massing and building facades incorporate a variety of building materials, including stucco, siding, and metal railings, and colors to provide visual interest. Development of the site with the project will result in a significant visual and economic improvement from existing conditions on the site, which largely consists of an undeveloped dirt lot and a small glass shop, and will assist in meeting the changing housing needs of the community. The project is also requesting a CUP to allow 6-foot high perimeter walls within the 15- foot front yardCity of Huntington Beach Printed on 5/19/2022Page 8 of 13 powered by Legistar™203 File #:22-440 MEETING DATE:5/24/2022 The project is also requesting a CUP to allow 6-foot high perimeter walls within the 15- foot front yard setback along Main Street and 43-inch and 6-foot high block walls around the private patios within the 10-foot front yard setback along Holly Lane. The proposed 43-inch and 6-foot tall perimeter walls in the front yard setback along Holly Lane and the 6-foot tall perimeter walls along Main Street are necessary to provide privacy to onsite residents. A 15-foot landscaped planter is provided between the 6-foot wall and the sidewalk along Main Street and an approximately 2.5-foot landscaped planter is provided in front of the proposed 43-inch and 6-foot tall walls along Holly Lane. The provision of perimeter landscaping in areas in front of the proposed 43-inch and 6-foot tall walls will soften the aesthetic appearance of the walls and enhance the streetscape within the front yard setback areas, in accordance with the City’s Urban Design Guidelines. In addition, the provision of private patio areas along Holly Lane will contribute to the sense of community and provide more “eyes” on the street consistent with principles of Crime Prevention through Environmental Design. With the exception of the CUP request for wall heights within the front yard setback areas, the only deviations from applicable development standards established in the base zoning district and other applicable provisions in the HBZSO are the waivers of development standards, density bonus, and reduced parking ratio included as part of the project as permitted under the California Density Bonus Law. California Density Bonus Law The applicant is seeking to invoke development tools and privileges outlined in the California Density Bonus Law (found in California Government Code Sections 65915-65918). As stipulated in the California Density Bonus Law, projects providing 15 percent of the total units as available to moderate income households are entitled to a 10 percent density bonus. In addition to a density bonus, local jurisdictions are required to grant other incentives or concessions to housing projects containing a percentage of affordable units. A concession or incentive is defined as any of the following: a reduction in site development standards or a modification of zoning code or architectural design requirements (e.g., a reduction in setback or minimum square footage requirements) approval of mixed use zoning, other regulatory incentives or concessions which result in identifiable and actual cost reductions. The number of required incentives or concessions that are granted to an applicant is based on the percentage of affordable units included as part the project. Projects that include 15 percent of the proposed units as affordable to moderate income households (e.g., the proposed project) are entitled to one incentive/concession. Concessions/incentives are permitted unless the proposed incentives/concessions do not result in identifiable and actual cost reductions, would cause a public health or safety problem, would cause an environmental problem, would harm historical property, or would be contrary to the law. In addition to granting incentives/concessions, developments qualifying for a density bonus also can receive an unlimited number of waivers from development standards. As such, the City is not permitted to apply development standard that would physically prevent the project from being developed at the permitted density with the granted incentives/concessions. However, the city is not required to waive or reduce development standards that would cause a public health or safety problem, cause an environmental problem, harm historical property, or would be contrary to law. A waiver or reduction of a development standard does not count as an incentive or concession, and there is no limit on the number of development standard waivers that may be requested or granted. In addition, the California Density Bonus Law stipulates that the City may not require parking at ratios beyond what is established in the California Density Bonus Law upon the developer’s request. City of Huntington Beach Printed on 5/19/2022Page 9 of 13 powered by Legistar™204 File #:22-440 MEETING DATE:5/24/2022 Consistent with the California Density Bonus law, the project includes the following incentives/concessions, waivers of City standards, and reduction of parking requirements: Incentives: The applicant is not requesting an incentive/concession. Waivers: The following waivers of development standards are proposed so as not to physically preclude the applicant from developing the proposed number of units on the site: 1) 15-foot Front Yard Setback:The applicant is proposing a 10-foot front yard setback in lieu of the required 15-foot front yard setback along Holly Lane, and 2) 20-Foot Building Separation:The application is proposing a reduced building separation between several of the onsite buildings (15- and 16-feet instead of 20-feet). Density Bonus: The project qualifies for a 10 percent density bonus per the California Density Bonus Law due to the provision of 15 percent of the total units as affordable to moderate income households. As such, the applicant is entitled to and is requesting a 10 percent density bonus to allow three additional units in addition to the 32 base units permitted under the Holly-Seacliff Specific Plan. Reduced Parking Ratio: Per the California Density Bonus Law, the city or county may not require more than the parking ratios for a density bonus project (inclusive of parking for persons with disabilities) outlined in the table below. As illustrated by this table, the proposed project would provide 29 more spaces than what is required by State law. Unit Type Type Count Required Ratio per City Code Required Parking Spaces per City Code Maximum Parking Requirements per State Law Required Parking Spaces per State Law Provided Parking by the Project 2 Bedroom 11 Units 2 Spaces (1 enclosed) per Unit 22 1.5 per Unit 17 22 3 Bedroom 24 Units 2.5 Spaces (1 enclosed) per Unit 60 1.5 per Unit 36 48 0.5 Guest Space per Unit 18 0 spaces 0 12 Total 100 -53 82 City of Huntington Beach Printed on 5/19/2022Page 10 of 13 powered by Legistar™205 File #:22-440 MEETING DATE:5/24/2022 Quimby Act and Affordable Housing The Community Services and Library Department has determined that additional public park area within the project area is not needed. Therefore, the project will pay park and recreation in lieu fees to satisfy Quimby Act requirements pursuant to Chapter 254 of the HBZSO. Pursuant to Chapter III of the Holly-Seacliff Specific Plan, the project is required to comply with affordable housing requirements and provide 15 percent of the proposed 32 base dwelling units (5 units) as affordable units. The restricted income units must be provided on-site with the new development in order to qualify for density bonus. In accordance with these requirements, the applicant is proposing five units restricted for moderate income households for a period of 45 years. Urban Design Guidelines Conformance: The project, as modified by suggested conditions, is in substantial conformance with the Urban Design Guidelines, Chapter 3 (Multi-Family Detached Residential) by providing: ·New residential buildings in an arrangement that is sensitive to the characteristics of the existing site and surrounding area; ·Ornamental landscaping and enhanced paving at the project entrance; ·Orienting the buildings to promote privacy to the greatest extent possible; ·Courtyards and open space areas throughout the project site; ·The main project entrance off Holly Lane, so as to avoid vehicular conflicts on busier arterials, such as Garfield Avenue and Main Street; ·Sidewalks along the perimeter and within the interior of the site; ·Landscaping throughout the development that frames, softens, and enhances the quality of the development; ·Architecture that is compatible with the surrounding buildings and meets or exceeds the standards of quality, which have been set by surrounding development; ·Architectural elements such as windows, doors, headers, etc. that create a rhythmic composition; ·Varied building design with significant difference in the massing and composition of each adjacent house; ·Elevations that are architecturally enhanced; ·Roof designs that complement qualities of the neighboring residential structures such as type, slope, size, materials, and colors; and ·Open space in close proximity to every dwelling. Environmental Status: The City certified Program Environmental Impact Report No. 89-001 for the Holly-Seacliff Specific Plan in 1990, which evaluated environmental impacts associated with development approved as part of the Holly-Seacliff Specific Plan. The Holly-Seacliff Specific Plan identified the subject property as a Commercial (C) land use and the Holly-Seacliff Specific Plan EIR evaluated environmental impacts associated with up to 117,612 sf of commercial uses on the property. The Holly-Seacliff Specific Plan EIR provides the environmental setting and analysis to serve as the first-tier CEQA document for the proposed project. Although the Holly-Seacliff Specific Plan considered the impacts of commercial development on the City of Huntington Beach Printed on 5/19/2022Page 11 of 13 powered by Legistar™206 File #:22-440 MEETING DATE:5/24/2022 Although the Holly-Seacliff Specific Plan considered the impacts of commercial development on the subject property, a residential use (such as the proposed project) would result in a less intense project than what was evaluated under the Holly-Seacliff Specific Plan EIR, and therefore would not result in new significant impacts or an increase in the severity of a previously identified impact in the Holly-Seacliff Specific Plan EIR. In addition, the project includes several project design features and will be required to comply with City standards and existing mitigation measures outlined in the Holly- Seacliff Specific Plan EIR to ensure that development of the proposed project and approval of the GPA, ZTA, TTM, and CUP would not result in an action that requires further evaluation pursuant to CEQA (Attachment No. 7). Coastal Status: Not applicable. Design Review Board: The Design Review Board reviewed the design, colors, and materials of the project at their January 13, 2022 regular meeting and recommended approval with modifications. These requested modifications included adding horizontal bars to upper story windows and painting the upper-story wood headers grey. These modifications have been incorporated in the TTM and CUP suggested conditions of approval. Other Departments Concerns and Requirements: Public Works, Building, Fire, Police, and Community Services staff reviewed the proposed project and identified code requirements applicable to the project. The Public Works and Fire Departments have identified some conditions that have been incorporated into the suggested conditions of approval (Attachment No. 1) Public Notification: Legal notice was published in the Huntington Beach Wave on Thursday, April 28 2022 and notices were sent to property owners of record within a 500 ft. radius of the subject property, individuals/organizations requesting notification (Community Development Department’s Notification Matrix), and applicant. Application Processing Dates: DATE OF COMPLETE APPLICATION:MANDATORY PROCESSING DATE(S): March 16, 2022 Addendum No. 1 to the Holly-Seacliff Specific Plan - Within 1 Year of complete application GPA/ZTA/TTM/CUP - None SUMMARY: Staff recommends the Planning Commission recommend adoption of Environmental Assessment No. 20-003 (Addendum No.1 to the Holly-Seacliff Specific Plan Environmental Impact Report) and approval of General Plan Amendment No. 20-003 and Zone Text Amendment No. 20-003 with findings to the City Council and approve Tentative Tract Map No. 19118 and Conditional Use Permit No. 20-025 with findings (Attachment No. 1). This recommendation is based on the following: ¾Environmental Assessment No. 20-003 (Addendum No.1 to the Holly-Seacliff Specific Plan EIR for the Holly Triangle Townhomes Project) is adequate and complete in that it has identified all potential environmental impacts associated with the project. ¾Environmental Assessment No. 20-003 (Addendum No.1 to the Holly-Seacliff Specific Plan City of Huntington Beach Printed on 5/19/2022Page 12 of 13 powered by Legistar™207 File #:22-440 MEETING DATE:5/24/2022 ¾Environmental Assessment No. 20-003 (Addendum No.1 to the Holly-Seacliff Specific Plan EIR for the Holly Triangle Townhomes Project) demonstrates that the project will not have new or substantially more severe environmental impacts that were not disclosed in the certified Final EIR for the Holly-Seacliff Specific Plan and will not require new mitigation measures or the preparation of a Subsequent or Supplemental EIR. ¾Environmental Assessment No. 20-003 (Addendum No.1 to the Holly-Seacliff Specific Plan EIR for the Holly Triangle Townhomes Project) was prepared in compliance with the CEQA Guidelines. ¾The GPA, ZTA, TTM, and CUP are consistent with the General Plan and its goals and policies. ¾The GPA, ZTA, TTM, and CUP are consistent with surrounding area. ¾The project meets the requirements of the Subdivision Map Act. ¾The request will allow the development of additional housing on the subject site and will add to the City’s housing stock. ATTACHMENTS: 1.Suggested Findings and Conditions of Approval for Environmental Assessment No. 20-003 (Addendum to the certified Final EIR for the Holly-Seacliff Specific Plan), Zoning Text Amendment No. 20-003; Tentative Tract Map No. 19118; and Conditional Use Permit No. 20- 025 2. Draft City Council Resolution No. 22-26 for Addendum No. 1 to the Holly-Seacliff Specific Plan Environmental Impact Report No. 89-1 3. Draft City Council Resolution No. 2022-19 for General Plan Amendment No. 20-003 4. Draft City Council Ordinance No. 4256 for Zoning Text Amendment No. 20-003 5. Project Plans dated February 11, 2022 6. Project Narrative dated April 2022 7. Addendum No. 1 to the certified Final EIR for the Holly-Seacliff Specific Plan EIR (available here: https://www.huntingtonbeachca.gov/government/departments/planning/major/major-projects -view.cfm?ID=106) 8. Code Requirements Letter (For Informational Purposes Only) dated April 12, 2022 9. Tentative Tract Map No. 19118 10. Existing & Proposed General Plan Land Use Designation Maps 11. Revised Specific Plan/ZTA-20-003 Legislative Draft 12.Vicinity Map City of Huntington Beach Printed on 5/19/2022Page 13 of 13 powered by Legistar™208 Affordable Housing Agreement – 19070 Holly Lane City Council February 7, 2023 209 Background • Bonanni Development Company received entitlements for a 35-unit ownership project located at 19070 Holly Lane (“Project”). • The Project is located within the Holly-Seacliff Specific Plan (HSSP). • Five affordable units: • 3 two-bedroom units • 2 three-bedroom units • All five affordable units will be available to “moderate income” households (not to exceed 120% of area median income). • 45-year affordability covenant. 210 Background – Density Bonus • Project is eligible for a 10% density bonus. • Site will consist of 32 “base” units and three density bonus units for 35 total units, of which, five units will be affordable to moderate income households. • Project conforms to the Density Bonus Law, the City’s Inclusionary Ordinance requirements, and the Holly-Seacliff Specific Plan. • On May 24, 2022, the Planning Commission approved the entitlement requests and recommended approval of the EIR, General Plan and Zoning Text Amendments. • On June 21, 2022, the City Council certified the EIR and approved the General Plan and Zoning Text Amendments. 211 Density Bonus Waivers The developer will provide 10% of the units as affordable and therefore, per Density Bonus Law, is eligible for one concession, unlimited waivers, and reduction in parking requirements. The developer did not request a concession and is utilizing the following two waivers to development standards and Density Bonus Parking standards: • Reduction of 5 feet for front yard setback along Holly Lane (15-foot required and10-foot approved); and • Reduction of 4 to 5 feet for building separation, (20-foot required and15-16 feet approved); and • The project will provide 82 parking spaces (18 spaces less than the City’s parking standards but 29 spaces more than permitted under Density Bonus Parking standards). 212 Rent vs Sell Amendment • The developer anticipates selling the individual units in accordance with the Affordable Housing Agreement. • Due to future housing market uncertainties (higher interest rates and softening real estate market) the developer has requested the option to temporarily rent the units until the housing market supports home ownership. • If the City Council approves this option, the developer can make this rental request prior to completion of construction. • The City Attorney would then prepare an amendment to the Affordable Housing Agreement to incorporate rental provisions for execution by the City Manager. 213 Recommendations • Approve the Affordable Housing Agreement for the development of 35 townhomes at 19070 Holly Lane; and, • Authorize City Manager to execute the Affordable Housing Agreement, including all necessary related documents; and • Authorize City Manager to execute an amendment to the Affordable Housing Agreement, as prepared by the City Attorney, should the developer decide to rent instead of selling the townhomes due to market conditions; and • Authorize Housing Authority Executive Director to execute all necessary implementing agreements 214 Questions? 215 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-074 MEETING DATE:2/7/2023 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, Executive Assistant Subject: Approve and accept the California Office of Emergency Services (Cal OES) Violence Against Women Act Grant (LE22066860); authorize the Chief of Police to execute documents; approve appropriations; amend the Professional Services Listing to include provided domestic violence services; and contract Amendment No. 2 with Waymakers, in the amount of $116,032, for continued management of the Victim and Witness Assistance Services Program Statement of Issue: The Huntington Beach Police Department (HBPD) applied for and received a $203,143 Cal OES grant to help fund the Victim and Witness Assistance Services Program (“Program”) managed by Waymakers. City Council is requested to approve the grant award for 2023 and approve Amendment No. 2 to the City’s existing three-year contract with Waymakers for the continued management of the Program for services rendered through 2023. Financial Impact: To receive the Cal OES grant, the City must provide a match of $67,715, which has been budgeted in HBPD General Fund Account Number 10070203. The cost for the Program in 2023 is $270,858, with the grant award offsetting $203,143 in new revenue. A new grant fund will be established upon approval by City Council, and no additional appropriation of funds is necessary at this time. The Waymakers agreement is contingent upon receiving the Cal OES grant. Upon receipt, sufficient appropriations will be made available to fund the Waymakers contract into 2023. Recommended Action: A) Accept the grant between the State of California, Governor’s Office of Emergency Services (Cal OES) and the City of Huntington Beach; and, City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™216 File #:23-074 MEETING DATE:2/7/2023 B) Assign authority to the Chief of Police as the official to execute and sign for the award and to approve amendments and extensions; and, C) Approve the appropriation and expenditure of $203,143, which is fully reimbursed by the grant from Cal OES. The remaining $67,715 will be funded from existing appropriations in the Police Department’s budget; and, D) Amend the Professional Services Listing to include provided domestic violence services; and, E) Approve and authorize “Amendment No. 2” to Agreement Between the City of Huntington Beach and Waymakers for Victim and Witness Assistance Services. Alternative Action(s): Do not approve and direct staff accordingly. Analysis: The Police Department applied for and was awarded a grant by Cal OES to prevent, investigate and prosecute crimes involving domestic violence, sexual assault, and stalking. The majority of this grant funding of $270,858 (which includes the $67,715 match), will pay for the services of a Victim Advocate, who assists victims and survivors as they navigate the legal processes including obtaining restraining orders. Additionally, the Victim Advocate provides other support services to victims and survivors including temporary housing placement and referrals to counseling and legal aid. The Victim Advocate is contracted through Waymakers Victim Assistance Program and Interval House. The remaining funds will pay for two part-time domestic violence investigators who perform case follow-up and investigative work related to the domestic violence caseload. These investigators assist a full-time detective, allowing the police department to investigate domestic violence incidents in a timely manner, resulting in improved services to victims and a greater likelihood that future incidents will be prevented. This collaboration has been in effect since 1998, and since the inception of the Violence Against Women Project, the Advocate position has been continuously funded through a series of grants. The grant also provides for the continued agreement with Interval House, offering priority shelter for domestic violence victims from Huntington Beach and their children on a 24-hour basis. The goal of the programs funded through the grant is to help heal families and thereby stop the cycle of violence. Without this grant, the current “wrap-around” model whereby victims receive services while the Advocate works closely with a Police Department investigator to form a cohesive team throughout the process would not be possible. The acceptance of the grant will pay for the collaboration involving the Police Department through December 31, 2023, and the cash match of $67,715 is located within the existing Police Department budget. 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 2/1/2023Page 2 of 3 powered by Legistar™217 File #:23-074 MEETING DATE:2/7/2023 Strategic Plan Goal: Financial Sustainability, Public Safety or Other Attachment(s): 1. Grant award letter and packet. 2. Waymakers Amendment No. 2 3. Waymakers Original Contract and Amendment No. 1 City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™218 Notification of Grant Subaward Application Approval Law Enforcement Specialized Units Program Grant Subaward #: LE22 06 6860 Dear Lt. Kevin Johnson: Kevin Johnson, Lieutenant Huntington Beach, City of 2000 Main Street Huntington Beach, CA 92648-2702 Subject: December 9, 2022 3650 SCHRIEVER AVENUE l MATHER, CALIFORNIA 95655 www.CalOES.ca.gov GAVIN NEWSOM GOVERNOR MARK S. GHILARDUCCI DIRECTOR Congratulations! The California Governor's Office of Emergency Services (Cal OES) has approved your Grant Subaward application in the amount of $203,143, subject to Budget approval. A copy of your approved Grant Subaward is enclosed for your records. Cal OES will make every effort to process payment requests within 45 days of receipt of your Report of Expenditures & Request for Funds (Cal OES Form 2-201). This Grant Subaward is subject to the Cal OES Subrecipient Handbook. You are encouraged to read and familiarize yourself with the Cal OES Subrecipient Handbook, which can be viewed on the Cal OES website at www.caloes.ca.gov. Any funds received in excess of current needs, approved amounts, or those funds owed as a result of a close-out or audit, must be refunded to Cal OES within 30 days upon receipt of an invoice. Please contact your Program Specialist, Elizabeth Wilder, at (916) 328-7451 with questions about this notice. VS Grants Processing Unit cc: Subrecipient's file Program Specialist 219 SPECIAL CONDITION Grant Subaward No. LE22 06 6860 is hereby approved with the following conditions: • The 2021 STOP Funds in the amount of $ 33,857 must be expended by 4/30/23 and the final 2-201 must be received by Cal OES by 5/31/23. • The 2021 STOP Funds in the amount of $33,857 must be expended before the 2022 STOP funds. • The 2022 STOP funds in the amount of $169,286 cannot be expended until Cal OES has access to funds through the applicable FY 2022-23 Federal award. Should the Federal award(s) be reduced, you will be notified and required to amend the Grant Subaward. Failure to comply with these requirements may result in the withholding and disallowance of grant payments, the reduction or termination of the Grant Subaward and/or the denial of future grant funds. 220 ENY: 2022-23 Chapter: 43 SL: 18411 Item: 0690-102-0890 Pgm: 0385 FAIN #: 15JOVW-21-GG-00554-STOP 07/01/21-06/30/23 Fund: Federal Trust AL#: 16.588 Program: Law Enforcement Specialized Units Program Match Req.:25%, C/IK based on TPC Project ID: OES21STOP000012 SC: 2022-18411 Amount: $33,857 ENY: 2022-23 Chapter: 43 SL: 18412 Item: 0690-102-0890 Pgm: 0385 FAIN #:15JOVW-22-GG-00411-STOP 07/01/22-06/30/24 Fund: Federal Trust AL#: 16.588 Program: Law Enforcement Specialized Units Program Match Req.: 25%, C/IK based on TPC Project ID: OES22STOP000012 SC: 2022-18412 Amount: $169,286 059-36000-04 059-36000 221 Supplemental Grant Subaward Information – Cal OES 2-101a (08/2020) CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES SUPPLEMENTAL GRANT SUBAWARD INFORMATION 1. Cal OES Contact Information Section: Governor’s Office of Emergency Services Mark S. Ghilarducci, Director 3650 Schriever Avenue Mather, CA 95655 (916) 845-8506 (phone) 2. Federal Awarding Agency Section: 3. Project Description Section: Project Acronym: Law Enforcement Specialized Units Program (LE) Project Description: The purpose of the LE Program is to create or enhance specialized units to provide a coordinated response to victims/survivors of domestic violence and their children. The specialized units will accomplish this through investigations, immediate victim advocacy, training for first responders, and the development of effective practices and protocols that will remain sustainable beyond the Grant Subaward performance cycle. 4. Research & Development Section: Is this Subaward a Research & Development grant? Yes No Fund Year Federal Program Fund / AL# Federal Awarding Agency Total Federal Award Amount Total Local Assistance Amount 2021 Violence Against Women Act (STOP) / 16.588 Office of Violence Against Women $14,691,713 $13,222,542 2022 Violence Against Women Act (STOP) / 16.588 Office of Violence Against Women $14,691,713 $13,222,542 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 VSPS Budget Summary Report 12/09/22 F/S/L (Funding Types): F=Federal, S=State, L=Local Match Paid/Expended=posted in ledger w/Claim Schedule, Pending=Processed, but not yet in Claim Schedule F/S/L F/S/L F/S/L Funding Source Funding Source Funding Source Budget Amount Budget Amount Budget Amount Paid/Expended Paid/Expended Paid/Expended A. Personal Services - Salaries/Employee Benefits B. Operating Expenses C. Equipment Balance Balance Balance 21STOP 21STOP 22STOP 22STOP 21STOP 21STOP 22STOP 22STOP 21STOP 21STOP 22STOP 22STOP F L F L F L F L F L F L 0 0 0 0 0 0 0 0 0 0 0 0 33,857 11,286 29,695 56,429 0 0 139,591 0 0 0 0 0 33,857 11,286 29,695 56,429 0 0 139,591 0 0 0 0 0 Law Enforcement Specialized Units Program Huntington Beach, City of LE22 Law Enforcement Specialized Units Program 0 0 0 131,267 139,591 0 131,267 139,591 0 Total A. Personal Services - Salaries/Employee Benefits: Total B. Operating Expenses: Total C. Equipment: Pending Pending Pending Pending Balance Pending Balance Pending Balance 0 0 0 0 0 0 0 0 0 0 0 0 33,857 11,286 29,695 56,429 0 0 139,591 0 0 0 0 0 0 0 0 131,267 139,591 0 Performance Period: 01/01/23 - 12/31/23 blank filler blank filler blank filler Subaward #: LE22 06 6860 Latest Request: , Not Final 201 242 VSPS Budget Summary Report 12/09/22 F/S/L (Funding Types): F=Federal, S=State, L=Local Match Paid/Expended=posted in ledger w/Claim Schedule, Pending=Processed, but not yet in Claim Schedule Total Local Match: 0 67,715 67,715 Law Enforcement Specialized Units Program Huntington Beach, City of LE22 Law Enforcement Specialized Units Program Total Funded: Total Project Cost: 0 203,143 203,143 0 270,858 270,858 Budget Amount Paid/Expended Balance 0 67,715 0 203,143 0 270,858 Pending Pending Balance Performance Period: 01/01/23 - 12/31/23 Subaward #: LE22 06 6860 Latest Request: , Not Final 201 243 244 245 246 247 248 249 250 251 059-36000 252 253 254 255 AMENDMENT NO. 1 TO AGREEMENT B1 fWEEN THE CITY OF HUNTINGTON BEACH AND WAYMAKERS FOR VICTIM AND WITNESS ASSISTANCE SERVICES THIS AMENDMENT is made and entered into by and between the CITY OF I-{UNTINGTON BEACH. a California municipal corporation, hereinafter referred to as City," and Waymakers, a non-profit California Corporation, hereinafter referred to as Consultant." WHERE City and Consultant are parties to that certain agreement, dated January 1, 2021, entitled "Professional Services Contract Between the City of Huntington Beach and Waymakers for Victim and Witness Assistance Services" which agreement shall hereinafter be referred to as the"Original Agreement; and City and Consultant wish to amend the Original Agreement to increase the amount of compensation to be paid to Consultant, NOW, THEREFORE, it is agreed by City and Consultant as follows: 1. ADDITIONAL COMPENSATION In consideration of the services to be performed under the Original Agreement, City agrees to pay Consultant at the rates specified in Exhibit B which is attached hereto and incorporated by reference into this Agreement. City further agrees to pay Consultant an additional sum not to exceed One Hundred Sixteen Thousand Thirty Two Dollars ($116,032.00). The additional sum shall be added to the original sum of One Hundred Nine '1'housand Seven Hundred Ninety Dollars ($109,790.00), for a new contract amount not to exceed Two Hundred Twenty Five Thousand Eight Hundred Twenty Two Dollars ($226, 822.00). 22-11023/276321 1 256 2. REAFFIRMATION Except as specifically modified heroin,all other terms and conditions for the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on 2022. WAYMAKERS CITY OF HUNTINGTON BEACH, a municipal corporation of the State of By: California print name LA ITS: (circle one)Chainnan/PnsidentNice President 6 AND Mayor BY City Clerk print nan1C NIT ED AN PR ED: ITS: (drde one) Secretary/Chief Financial OfficeriAsst.Secretary-Treesarer of of Mice APPROVED O M: C' Attorney 22.11023/276321 2 257 O ARC° CERTIFICATE OF LIABILITY INSURANCE DATE ors2D2, YYY, THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the cerlillcete holder Is an ADDITIONAL INSURED,the pollcy(les)must have ADDITIONAL INSURED provlslons or be endorsed. II SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain pollCIDs Trey require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsementte . PRODUCER CHO MIGlOIIe Gonzalez Arthur J.Gallagher&Co. v"' E FAx Insurance Brokers of CA., Inc, o.EMI:818.539.6830 505 N Brand Blvd,Suite 600 poonless: Micheffe_Gonzeleznaig.com Glendale CA 91203 INSUREftfs)AFFOROINO COVERAGE NAICo JIOonse#:0726293 INSURER A:Non rofiis'Insurance Alliance of CA INSURED WAYMAKE 01 INSURER 9:Selvko American lndemni Company 39152 Waymakers 1221 E. Dyer Road, Suite 120 INSURER C: Santa Ana, CA 92705 INSURER D: _ _ INSURER E; INSURER F: COVERAGES CERTIFICATE NUMBER:2004336667 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID ICCLLAIMS.IUSALTHTYPEOFINSURANCEIINDWe POLICY NU MaEFt I MOADO/1'YFY M LdYY% - - LIMITS A X COMMERCIAL GENERAL LIABILITY Y 2021.12060 101112021 UVU2022 EACH OCCURRENCE 1.000,000 ClAulS•MADE nG2UN PREM15ES1EIMco)_.. {500,000__ ,_-_, _ X oFcI cMla'.Nat.MED EXP(Ar,y ono pprrgnl $20,000 PERSONAL A ADV INJURY $1,000.000 GENL AGGREGATEPLIIM]I APPLIES PER: GENERAL AGGREGATE_ 63.0_00.00_0 X POLICY u JEC u 1.0C PRODUCTS•CONP%W AGO 13.000, 000 — OTHER: 5 A AUTOMOIRLEUABILITY 2021.12009 10/112021 iWU2022 fET e1NE0 SWCLE LIMIT 61,000,000 X ANY AUTO BODILY IWURY(Pal pavan) 5 OWNED SCHEDULED BODILY INRIRY(Pm awdan0 IAUTOSONLYAUTOSAPPROVEDASOFORMHIREDµX NEO AUTOS ONLY X AUTOS ONLYIl a ac cdOnI M1A0(6 Con Fbn Dad 6500/5500 A X UMBRELLAUA9 occurs 12021.1206E-UMB MICHAEL E. A1E6/2021 10/112022 EACH OCCURRENCE 610,OD0,000 EXCESS LIAR CITY ATTO NEY CLAIMS MADE AOUREGAIE. .___ S10,000,D00CITYOFHUNTINGONBEACH DED X RETENTIONb 7 5 e WG6KERSCOLIPENSATION SATIS0352401 101112021 10/IR022 X 0.AND EMPLOYERS'LIABILITY YIN A7 T ANYPPOP0IETONP0.niHENE%ECUTIVE NIA E.LEAHACCIDENT —""- _51,000,000OFFICENMENNtlNEXCLUDE071-1( M,nWoryb, E.L.DISEASE•EA ELIPLOYEE $1,000,000 0 yyaa.doccliba mvb OESC IPrION OF OPERAT NS N E.L.DIREASE-POLICY LIMIT 6t,000, 000 A H Wly 2021.;20eQ.00 10/1f2021 IO/IR022 11n,Y I,000,000 A 'Aorta 81 uab: 2021. 2069 10/112021 10/1/2022 Per cblm 1.000.000 Daduo W Nma ALp,epale 3.000, 000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES(ACORD 101,AMllloml RNouka SahadVlo,may bo Ulmhatl If nroro apace b re0ubodl Nonprofits'Insurance Alliance OI CA-A.M.Bast 11:011845 Policy..Improper Sexual Conduct Policy#:2021.12069 Policy term: 10/12021 to 101112022 Carder:Nonprofits Insurance Alllanco of CA Per Clalm:$1,000,000.Aggregate:$1,000,000 DeduclIble:None See Attached... CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITHTHE POLICY PROVISIONS. City of Huntington Beauh Police Department Hunt Man St AUINONZEDREP ESENTATIVE Huntington Beach CA 92649 MQ.YA r+a.. 01988.2015 ACORD CORPORATION, All rights reserved. ACORD 25(2016103) The ACORD name and logo are registered marks of ACORD 2'019 6090258 AGENCY CUSTOMER ID: WAYMAKE-01 LOC it: _ AC R® ADDITIONAL REMARKS SCHEDULE Page I of I AGENCY NAMED INSURED Arthur J.Gallagher&Co. Waymakers i 1221 E.Dyer Road,Suite 120 POLICY NUMBER Santa Ana,CA 92705 CARRIER NAIL CODE EFfECTIVE GATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE Policy:Cyber Liability Policy#:TBD Pollcyterm: 101112021 to 10/112022 Carrier:Underwriters at Lloyds,London Aggregate Limit:$2,000,000 RE: Diversion Program.City of Huntington Beach,its elected DT appointed offldals,agents,officers,amployyoos,and volunteers am named additional Insured with respect to the operations of the named Insured per the attached Form NIAC-E61 02 10 that providesAddigonal Insurance,Primary&Non-Contributory for Public Entities. ACORD 101 (2008/0t) 02008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD S'of 8 6090259 Di City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 714) 536-5227 www.huntingtonbeachca.gov F Office of the City Clerk Robin Estanislau, City Clerk April 28, 2022 Waymakers Attn: Ronnetta Johnson 1221 E. Dyer Road, Suite 120 Santa Ana, CA 92705 Dear Ms. Johnson: Enclosed is a fully executed copy of the Amendment No. 1 to Agreement between the City of Huntington Beach and Waymakers for Victim and Witness Assistance Services approved by City Council on April 5, 2022. Sincerely, 4& 7144 Robin Estanislau, CMC City Clerk RE:ds Enclosure Sister Cities: Anjo, Japan • Waitakere, New Zealand 260 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND WAYMAKERS FOR ' VICTIM AND WITNESS ASSISTANCE SERVICES THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as CITY," and Waymakers, a non-profit California Corporation hereinafter referred to as CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide victim and witness assistance services; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: I.SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Ronnetta Johnson who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2.CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 20-9070/240234agree/surfnet/professional svcs mayor I of 11 5/19-204082 261 3. TERM:TIME OF PERFORNLkNCIr Time is of the essence of this Agreement. The services of CONSULTANT are to commence on January 1 , 2021 4( the "Commencement Date"). This agreement AperzV r- . aya,n(<Aww/M1202! shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. CQME SATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses,not to exceed One Hundred Nine Thousand Seven Hundred Ninety Dollars(S 109,790). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit r'B." 20A070rAM4W=1"fheUprofeWmal svos mayor 2 of 11 5J19.2MM 262 7.DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8.HOLD HARMLESS A. CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. B. To the extent that CONSULTANT performs "Design Professional Services" within the meaning of Civil Code Section 2782.8, then the following Hold Harmless provision applies in place of subsection A above: 20-9070/240234agree/surfnet/professional svcs mayor 3 of 11 5/19-204082 263 CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY and its officers, elected or appointed officials, employees, agents and volunteers, from and against any and all claims, damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) to the extent that the claims against CONSULTANT arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT. In no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more other defendants to the claims and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, CONSULTANT shall meet and confer with CITY and other defendants regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in California Civil Code Section 2782.8. C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. 9.PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars 1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention without the express written consent of CITY; however an insurance 20-9070/240234agree/surfnet/professional sves mayor 4 of 11 5/19-204082 264 policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two 2) years to report claims arising from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and 20-9070/240234agree/surfnet/professional sves mayor 5 of 11 5/19-204082 265 C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the 20-9070/240234agree/surfnet/professional svcs mayor 6 of 11 5/19-204082 266 event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: 20-9070/240234agree/surfnet/professional sves mayor 7 of 11 5/19-204082 267 TO CITY: TO CONSULTANT: City of Huntington Beach Waymakers ATTN: Lt. Chris Nesmith ATTN: Ronnetta Johnson 2000 Main Street 1221 E. Dyer Road, Suite 120 Huntington Beach, CA 92648 Santa Ana, CA 92705 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If-any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or 20-9070/240234agree/surfnet/professional svcs mayor 8 Of 11 5/1 9-204082 268 neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 20-9070/240234agree/surfnet/professional svcs mayor 9 of 11 5/19-204082 269 24. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this 20-9070/240234agree/surfnet/professional svcs mayor 10 of 11 5/19-204082 270 Agreement, This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the patties respecting the subject matter hereof. 29. E FECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council, This Agreement shall expire when terminated as provided herein. IN WTINESS WHEREOF, the parties hereto have caused this Agreement to be executed by and tluough their authorized officers. CONSULTANT, CITY OF HUNTINGTON BEACH, a Waymakers municipal co rpo Lion of the State of Califo 'a By, Ronnetta J.Johnson f s print name ITS: (circle one)Chsirman/PresidenWice President AND City Clerk l_r- By: INITIOED APPROVED: J e-1in c. le-'.-s-to-r print name 1 Pol' a hiefITS: (circle one)Secretary/ChiefFbtancial ofrimm st. Secretary-Treasurer R WED AM APPROVED: City Manager APPROVED AS TO FORM: r City Attorney 20-9070240Z4agrcd nwfnel/professionai eves mayor 11 of 11 5/19-204082 271 Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, CITY OF HUNTINGTON BEACH, a Waymakers municipal corporation of the State of California By: Mayor print name ITS: (circle one)Chairman/President/Vice President City Clerk AND INITIATED AND APPROVED: By: print name Interim Police Chief ITS: (circle one)Secretary/Chief Financial Officer/Asst. Secretary-Treasurer REVIEWED AND APPROVED: City Manager COi.TNTET.-I.PART APPROVED AS TO FORM: Sn City Attorney COUNTERPART 20-9070/240234agree/surfnet/professional svcs mayor 11 of 11 5/19-204082 272 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) The purpose of this contract is to continue the efforts of law enforcement agencies to enhance or create specialized units to focus special effort on the handling of violent crimes against adult women, including sexual assault, domestic violence, and stalking. The specialized unit will accomplish this purpose through thorough investigation, immediate victim advocacy, and training for law enforcement officers. Thorough investigation leads to successful prosecution of cases, immediate victim advocacy provides victims with the support and resources to help disrupt the cycle of violence, and training assists departments in providing a consistent, effective, and compassionate response to female victims of violent crime. The Victim Advocate/Program Manager will collect and report demographic information on victims served. The project contracts with a local victim service agency (rape crisis or domestic violence agency) for one full-time advocate (or full-time equivalent). The advocate must meet the requirements of a domestic violence or sexual assault counselors as defined by the Evidence Code (Section 1035-1036.2 for sexual assault counselors and Section 1037-1037.7 for domestic violence counselors). The Huntington Beach Victim Advocate/Program Manager must have experience in assisting victims of domestic violence, sexual assault, and stalking crimes. The agreement shall cover a period beginning January 1, 2021 through December 31, 2023, unless terminated earlier for cause or availability of funding. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: Project Scope: This project will provide comprehensive services for victims/witnesses of crime. The goals include providing services that will alleviate the trauma and devastating impact of crime on the lives of victims and their family members. Additionally, it is necessary to provide information to victims/witnesses of crime regarding the processes of the criminal justice system in order to encourage cooperation in the investigation and prosecution of the case. 1. Victim/Witness Services. The Huntington Beach Victim Advocate/Program Manager will facilitate the development and/or revision of officer and advocate protocols for responding to victims and their children; facilitate training for law enforcement officers; maintain statistical and historical documentation relevant to the fulfillment of the LE grant requirements; assist with the preparation of grant progress reports; and participate and respond to funder site monitoring visits. The Victim Advocate/Program Manager is additionally responsible for the provision of comprehensive victim services as described in the California Penal Code Section 13835.5. Both the mandatory and optional services listed in the Penal Code will be provided including: 2. Crisis intervention-provide timely and comprehensive responsive to the individual needs of crime victims. Emergency assistance -directly or indirectly providing food, housing,clothing and cash,if necessary. 273 Resource and referral counseling- direct victims to agencies within the community. Follow-up counseling - provide counseling to victims with problems resulting from crime. Filing of compensation claims -. assist victims in filing claims for compensation through the Victim Compensation and Government Claims Boards. Property returns assistance -upon request of the victim, assist in obtaining the return of a victim's property held as evidence by law enforcement agencies. Orientation -provide orientation to the criminal j ustice system. Court accompaniment- provide accompaniment and support the victim in the courtroom. Presentations (criminal justice agencies) provide presentations to and training of criminal justice system agencies. Presentations (public) - provide presentations to public agencies and community groups. Case status - monitor appropriate court cases to keep victims and witnesses apprised of the progress and disposition of their case. Notification - upon request of the victim, provide notification to friends, relatives and employers ofthe occurrence ofthe crime. Employer notification - upon request of the victim or witness, inform the employer that the employee was a victim or witness to a crime. Restitution assistance -upon request of the victim, assist in the process ofobtaining restitution for the victim. Optional Services - as outlined in the Penal Code shall include but is not limitedto: Employer intervention - assist the victim in resolving employment issues that arise as the result of the crime. Creditor intervention - assist the victim in resolving creditor issues that arise as the result of the crime. Crime prevention - provide information regarding crime prevention to individuals or community groups. Temporary restraining orders- provide assistancein obtaining temporary restraining orders for victims. Transportation- arrange for transportation to court for victims required to testify. Waiting area - arrange for the provision of a victim/witness waiting room. Victim Impact Statements - provide victims assistance in the preparation of victim impact statements for probation reports, sentencing and parole hearings. EXI HBIT A 274 3. Staffing Requirements. All staff must have met minimum education and experience requirements for the position, and be carefully screened for suitability. Offers of employment will be contingent upon successfully passing fingerprint and background checks. Supervision of staff will be the sole responsibility of the contracted agency. The following outlines general training requirements for the position. Victim Advocate/Program Manager. Staff assigned to provide victim/witness services by the contracted agency must complete the Entry Level and Advanced Advocate certification training requirements as established by the California Crime Victims Assistance Association and the California Office of Emergency Services. The contracted agency must provide specific training in domestic violence, sexual assault and stalking for advocates specializing in those areas of concern. Additionally, each advocate must be given no less than 16 hours of in service training each year. The position requires a minimum of five years experience in victim services. The current assigned Victim Advocate/Program Manager has 27 years of experience. C. CITY'S DUTIES AND RESPONSIBILITIES: 1. Pay contractor after an invoice is received from the contractor. 2. Negotiate rates with the contractor,as necessary. 3. Provide overall review ofthe services. D. WORK PROGRAM/PROJECT SCHEDULE: These services will be conducted within the contract period. It is understandable that some services will continue beyond the contract period if the services are ongoing. These ongoing services will not have any costs that will be assessed beyond the contract period. EXHIBIT A 275 EXHIBIT "B" Payment Schedule (Hourly Payment) A. Hourly Rate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: See attached Exhibit B B. Travel Charges for time during travel are not reimbursable. C. Billing 1.All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2.Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3.A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4.CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 1 Exhibit B 276 5.Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 2 Exhibit B 277 EXHIBIT B WAYMAKERS VAWA-Huntington Beach January 1, 2021 Through December 31, 2021 549 BUDGET CATEGORY AND LINE ITEM DETAIL A. PERSONNEL SERVICES COST SALARIES: Mo. Sala ry Months FTE Victim Advocate/Project Manager 6,880 11.50 1.00 79,120 TOTAL SALARIES 79,120 BENEFITS: Social Security/Medicare 7.65% 6,053 Workers Compensation Insurance 0.55% 435 State Unemployment Insurance 4.5%on 1 st$7,000 per employee. 302 Health Insurance Cost established by individual employee plan. 5,052 Dental Insurance Cost established by individual employee plan. 488 Vision Insurance Cost established by individual employee plan. 68 WAYPOINTS-Employer Contribution to Flexible Benefits Plan 1,150 50/$75/$100 per month based on length of service Basic Life&AD&D 6.52 per month per eligible employee. 75 Long Term Disability 13.39 per month per eligible employee.154 Retirement 4%after 12 mo, of employment 3,165 Paid Leave Paid Out as a Benefit 1%of salary plus applicable payroll taxes 888 TOTAL BENEFITS 17,830 TOTAL SALARY AND BENEFITS 96,950 B. OPERATING EXPENSES COST Financial Audit 277 64,000 total agency audit cost X 0.433% Allocated shared cost of agency wide audit conducted under the guidelines of OMB Office Expenses/Program Supplies 1,420 123.48 per month X 11.5 months Staff Mileage-Training,Case Management 650 98. 30 miles per month X 11.5 months X $0.575/mile Liability Insurance 512 44.52 per month X 11.5 months INDIRECT COST: 10% DE MINIMIS OF MODIFIED TOTAL DIRECT COST(MTDC) 9,981 10%X$99,809 (MTDC)=$9,981 MTDC=Program Salariesand Benefits$96,950+Program Direct Operating$2,859 TOTAL OPERATING EXPENSES 12,840 PROJECT TOTAL 109,790 278 EXHIBIT "B" Payment Schedule (Fixed Fee Payment) l.CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. 2.Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3.CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4.Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Exhibit B 279 The bid/proposal process was completed by the Orange County Sheriffs Department. Waymakers won the competitive process. Proposals submitted to OCSD are not available at this time. Lt. !Nesmith X5918 280 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND WAYMAKERS FOR VICTIM AND WITNESS ASSISTANCE SERVICES Table of Contents 1 Scope of Services.....................................................................................................1 2 City Staff Assistance................................................................................................2 3 Term; Time of Performance.....................................................................................2 4 Compensation ..........................................................................................................2 5 Extra Work...............................................................................................................2 6 Method of Payment..................................................................................................3 7 Disposition of Plans, Estimates and Other Documents ...........................................3 8 Hold Harmless .........................................................................................................3 9 Professional Liability Insurance.............................................................................4 10 Certificate of Insurance............................................................................................5 11 Independent Contractor............................................................................................6 12 Termination of Agreement.......................................................................................6 13 Assignment and Delegation......................................................................................6 14 Copyrights/Patents...................................................................................................7 15 City Employees and Officials..................................................................................7 16 Notices.........................................................................................7 17 Consent ....................................................................................................................8 18 Modification.............................................................................................................8 19 Section Headings .....................................................................................................8 20 Interpretation of this Agreement..............................................................................8 21 Duplicate Original....................................................................................................9 22 Immigration...............................................................................................................9 23 Legal Services Subcontracting Prohibited................................................................9 24 Attorney's Fees..........................................................................................................10 25 Survival.....................................................................................................................10 26 Governing Law.........................................................................................................10 27 Signatories.................................................................................................................10 28 Entirety 10 29 Effective Date.................................................................................I I 281 j,J l ®, 4 oRo CERTIFICATE OF LIABILITY INSURANCE DATE(MMIDDIYYYY) 10/28r2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(les)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In Ileu of such endorsement(s). PRODUCER CONTANAME: Michelle Gonzalez Arthur J. Gallagher&Co. PHOJAC NEo.g18- 539.8630 vc NoInsuranceBrokersofCA., Inc. E-MAIL A505NBrandBlvd, Suite 600 DD . Michelle GonzaleziMaig.com Glendale CA 91203 INSURERS AFFORDING COVERAGE _ NAICO Llcense#:072629 INSURER A:Nonprofits'Insurance Alliance of CA INSURED WAYMAKE-01 INSURERS:Service American Indemnity Company Waymakers 1221 E.Dyer Road,Suite 120 INSURERC: Santa Ana, CA 92705 INSURERD: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:1233929237 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR AODLSURR LTR TYPE OF INSURANCE POLICYNUMSER MM/DDY M EFF MIDICDYEXP LIMITS A X COMMERCIAL GENERAL LIABILITY Y 202012069NPO 10/1/2..020 10h12021 EACH OCCURRENCE $1,000,000 G ToCLAIMS-MADE OCCUR PREA11SE5 Ea occuRENTErre $500, 000 Mr:D EXP(Any one person) $20,000 PERSONAL&AOV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE S 3,000,000 POLICY JECTFRO- LOCXPRO. PRODUCTS-COMP/OP AGG $3,000,000 OTHER: S A AUTOMOBILE LIABILITY 2020112069NPO 10/1/2020 101V2021 COMBINED SINGLE LIMIT $1,000,000eac4ant X ANY AUTO ROOILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per aaddent) S AUTOS ONLY AUTOS X HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident A X UMBRELLALIAB X OCCUR 202012069UMB 101V2020 10/1/2021 EACH OCCURRENCE $10.000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE S10,000,000 DED RETENTION$ B WORKERS COMPENSATION SATIS0352400 10/1/2020 10/1/2021 X AND EMPLOYERS'LIABILITY STAT UT ER YIN ANYPROPRIETORlPARTNE(UE%ECUTIVE E.L.EACH ACCIDENT $1,000,000 OFFICE RIMEMBE R EXCLUDE 07 NIA Mandatory In NH) E.L.DISEASE•EA EMPLOYEE $1,000,000 U yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE•POLICY LIMIT $1.000, 000 A Fldudary 202012069DO 10/1/2020 10/1/2021 Urrit 1,000,000 A ProlessicnalUab.202012069NPO 10/1/2020 10/1/2021 Pa'C'aim 1.000,000 Aggregate 3,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES(ACORD 101,Additional Remarks Schedule,maybe attached if moro apace Is roqulre d) Policy:Improper Sexual Conduct AMIC ED AS O FORM Policy term:112/2020 tPolicyterm:10/1l2020 to 10/1/2021 Carrier:Nonprofits'Insurance Alliance of CA 13 Per Claim:$1,000,000,Aggregate:$1,000,000 AEL E.GATES Y ATTORNEYPolicy:Excess Liability Policy#:HS2018210203 CM OF HUNTINGTON BEACH See Attached... CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Cityy of Huntington Beach Police Department 2000 Main St Huntington Beach CA 92649 AUTHORIZED REP ESENTATIVE 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016103) The ACORD name and logo are registered marks of ACORD 282 AGENCY CUSTOMER ID:WAYMAKE-01 LOC#: ADDITIONAL REMARKS SCHEDULE Page 1 of 1 AGENCY NAMEDINSURED Arthur J.Gallagher&Co. Waymakers 1221 E.Dyer Road,Suite 120 POLICY NUMBER Santa Ana,CA 92705 CARRIER NAIC CODE j EFFECTIVE DATE; 1 ADDITIONAL REMARKS t THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE Policy term:10/1/2020 to 101112021 Carrier:Capitol Specially Insurance Co. 5,000,000 limit over NIAC Policy#202012069UMB Nonprofits'Insurance Alliance of CA-A.M.Best#:011845 RE:Dlverslon Program.City of Huntington Beach,its elected or appointed officials,agents,officers,employees,and volunteers are named additional Insured With respect to the operations of the named Insured per the attached Form NIAC-E61 0219 that provides Additional insurance,Primary&Non-Contributory for Public Entities, ACORD 101(2008101) 2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD 283 NONPROFITS INSURANCE ALLIANCE OF CALIFOMIA A Haad for Insurance.A Heart for Nonprofits. POLICY NUMBER:2020-12069 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED PRIMARY AND NON-CONTRIBUTORY ENDORSEMENT FOR PUBLIC ENTITIES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of Huntington Beach Police Department 2000 Main St Huntington Beach CA 92649 A. Section 11—WHO 1S AN INSURED is amended to include: 4.Any public entity as an additional insured,and the officers,officials,employees,agents and/or volunteers of that public entity,as applicable,who may be named in the Schedule above,when you have agreed in a written contract or written agreement presently in effect or becoming effective during the term of this policy, that such public entity and/or its officers, officials,employees, agents and/or volunteers be added as an additional insured(s)on your policy, but only with respect to liability for"bodily injury', "property damage"or personal and advertising injury"caused, in whole or in part,by: a. Your negligent acts or omissions;or b. The negligent acts or omissions of those acting on your behalf; in the performance of your ongoing operations. No such public entity or individual is an additional insured for liability arising out of the sole negligence by that public entity or its designated individuals. The additional insured status will not be afforded with respect to liability arising out of or related to your activities as a real estate manager for that person or organization. B. Section III--LIMITS OF INSURANCE is amended to include: B.The limits of insurance applicable to the public entity and applicable individuals Identified as an additional insured(s)pursuant to Provision A.4.above,are those specified in the written contract between you and that public entity, or the limits available under this policy,whichever are less. These limits are part of and not in addition to the limits of insurance under this policy. C. With respect to the insurance provided to the additional insured(s),Condition 4.Other Insurance of SECTION IV—COMMERCIAL GENERAL LIABILITY CONDITIONS is replaced by the following: 4. Other Insurance a. Primary Insurance This insurance is primary if you have agreed in a written contract or written agreement: 1) That this insurance be primary. If other insurance is also primary,we will share with all that other insurance as described in c.below;or NIAC-E61 02 19 Page 1 of 2 284 NMINONPROFITSINSURANCE ALLIANCE OF CALIFORNIA A Haad jorinsaranca.A Heart jorNonproJlts. POLICY NUMBER:2020-12069 2) The coverage afforded by this insurance is primary and non-contributory with the additional insured(s)'own insurance. Paragraphs(1)and (2)do not apply to other insurance to which the additional insured(s) has been added as an additional insured or to other insurance described in paragraph b.below. b. Excess Insurance i This insurance is excess over: 1. Any of the other insurance,whether primary,excess,contingent or on any other basis: a) That is Fire,Extended Coverage, Builder's Risk, Installation Risk or similar coverage for your work"; b) That is fire, lightning,or explosion insurance for premises rented to you or temporarily occupied by you with permission of the owner; c) That is insurance purchased by you to cover your liability as a tenant for"property damage" to premises temporarily occupied by you with permission of the owner;or d) If the loss arises out of the maintenance or use of aircraft,"autos"or watercraft to the extent not subject to Exclusion g.of SECTION I—COVERAGE A—BODILY INJURY AND PROPERTY DAMAGE. e) Any other insurance available to an additional insured(s)under this Endorsement covering liability for damages which are subject to this endorsement and for which the additional insured(s)has been added as an additional insured by that other insurance. 1) When this insurance is excess,we will have no duty under Coverages A or B to defend the additional insured(s)against any"suit"if any other insurer has a duty to defend the additional insured(s)against that"suit". If no other insurer defends,we will undertake to do so, but we will be entitled to the additional insured(s)'rights against all those other insurers. 2) When this insurance is excess over other insurance,we will pay only our share of the amount of the loss, if any,that exceeds the sum of: a) The total amount that all such other insurance would pay for the loss in the absence of this insurance;and b) The total of all deductible and self-insured amounts under all that other insurance. 3) We will share the remaining loss,if any,with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part, c. Methods of Sharing If all of the other insurance available to the additional insured(s)permits contribution by equal shares,we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains,whichever comes first. If any other the other insurance available to the additional insured(s)does not permit contribution by equal shares,we will contribute by limits. Under this method,each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. NIAC-E61 02 19 Page 2 of 2 285 POLICY NUMBER: 2020-12069 COMMERCIAL GENERAL LIABILITY Named Insured: Waymakers CG 20 26 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION I This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s)Or Organization(s): Any person or organization that you are required to add as an additional insured on this policy, under a written contract or agreement currently in effect,or becoming effective during the term of this policy.The additional insured status will not be afforded with respect to liability arising out of or related to your activities as a real estate manager for that person or organization. Information required to complete this Schedule,if not shown above,will be shown in the Declarations. A. Section 11—Who Is An Insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person(s)or additional insureds,the following is added to organization(s)shown in the Schedule, but only Section Ili--Limits Of Insurance: with respect to liability for"bodily injury","property damage"or"personal and advertising injury" If coverage provided to the additional insured is caused, in whole or in part, by your acts or required by a contract or agreement,the most we omissions or the acts or omissions of those acting will pay on behalf of the additional insured is the on your behalf: amount of insurance: 1. In the performance of your ongoing operations; 1. Required by the contract or agreement; or or 2. Available under the applicable Limits of 2. In connection with your premises owned by or Insurance shown in the Declarations; rented to you. whichever is less. However:This endorsement shall not increase the 1. The insurance afforded to such additional applicable Limits of Insurance shown in the insured only applies to the extent permitted by Declarations. law; and 2. If coverage provided to the additional insured is required by a contract or agreement,the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. CG 20 26 04 13 Insurance Services Office, Inc.,2012 Page 1 of 1 286 DATE i,.I,,fDON Y YY) CERTIFICATE OF LIABILITY INSURANCE 10/1/2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: It the certificate holder Is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in Ileu of such endorsement(s). PRODUCER CONTACT Michelle GORZa)e2 Arthur J. Gallagher&Co. anorEie FAX — Insurance Brokers of CA., Inc. 818-539.8630 la<c&J: EMAIL 505 N Brand Blvd, Suite 600 ADDRESS: Michelle_Gonzalez Q a g.com Glendale CA 91203 INSURER(S)AFFORUINGCOVERAGE NAIL0 Licensefh 0726293 INSURER A:Nonprofits'Insurance Alliance of CA INSURED M'AYMAKE--01 INSURER13:Service American Indemnity Company 1Naymakers 1221 E. Dyer Road, Suite 120 INSURERC: Santa Ana,CA 92705 INSURERE: INSURER F: COVERAGES CERTIFICATE NUMBER:433090098 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRI--.. -.___...___.._. AODLISUERIl ----- -. - -- POLICYEgFF rPOLICYEXP.I - LTR II TYPE OF INSURANCE INSDIIYVDI POLICY NUMBER M6UDDNYYV I ?MWDDNYYY l LIMITS A X COMMERCIALGENERALLIABILITY Y 202012069NPO 1011/2020 10/1/2021 kACHOCCURRENCE 51.000.000 vMA TOREE TEO CLAIMS-MADE [X-]OCCUR PREMISES.(Ea out uronw) $500.000 - IAEO EXP(My one person) s20.000 - PERSONAL&ADV INJURY $1,000.000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $3,000,000 X 'POLICY L_J j'O J LOC PRODUCTS•COMP/OPAGG $3,000,000 OTHER 1 A AUTOMOBILE LIABILITY 202012069NP0 t0/11202D 16/1I2021 OV9NED SINGLE LIMIT $1,000.000 X ANY AUTO BODILY INJURY(Per person) $ — OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED X NON OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY S_.... ._... .. A X UMBRELLA LIAB X OCCU 202012069UMB 10/112020 10/1/2021 EACHOCCURRENCE $10.000,000 EXCESS LIAR _ CLAIMSR MADE AGGREGATE 10,00D,000 ___ __ _ DED RETENTIONS B WORKERSCOMPENSATION SATIS0352400 1011/2020 10/1/2021 X Alto EMPLOYERS'LIABILITY AFF1T R ANYPROPRIETORPAHTNER/EXECUTIVE —I NIA E.L.EACH ACCIDENT $1.0-00.000'-- OFFICER/MEMBEREXCLUDED9 Mandatory In NH) E.L.DISEASE EA EMPLOYEE $1,000,000_ If yos,doscobe undor DESCRIPTION OF OPERATIONS below E.L.DISEASE•POLICY LIMIT $1,000,000 A Flduclary 202012069DO 10/1/2020 1011/2021 LImX 1,000,000 A Pwtesslonal LGab 202012069NP0 10/1/2020 10110021 P;Clalm 1,000,000 Aggregate 3.000,000 DESCRIPTION OF OPERATIONS I LOCATIONS/VEHICLES (ACORD 1D1,Additional Remerks Schedule,maybe attached If more space Is requirod) Policy:Improper Sexual Conduct Policy#:202012069NPO ApililoveD AS TO FORM Policy term: 10/1/2020 to 10/112021 Carrier:Nonprofits'Insurance Alliance of CA Per Claim:$1,000,000,Aggregate:$1,000,000 BY,f _ Nonprofits'Insurance Alliance of CA-A.M.Best#:011845 MICH 4 E RNEYGATIES RE:Diversion Program.City of Huntington Beach,its elected or appointed officials,agents,officers,employees,aI vo L1 tj f jt{onal Insured See Attached...CLTY Or 17 I CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Huntington Beach Police Department 2000 Main St AUTHOHIZEOREP ESENTATIVE Huntington Beach CA 92649 nn 1988.2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered(narks of ACORD 2'0 3 3959287 AGENCY CUSTOMER ID:WAYMAKE-01 LOG Ix: ACC?RV ADDITIONAL REMARKS SCHEDULE Page 1 of 1 AGENCY NAMED INSURED Arthur J.Gallagher&Co. Waymakers 1221 E.Dyer Road,Sulle 120 i POLICY HUMBER Santa Ana,CA 92705 CARRIER NAIC CODE EFFECTIVE DATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE with respect to the operations of the named insured per the attached Form NIAC-E61 02 19 that provides Additional Insurance, Primary&Non-Contributory for Public Entities.Endorsement to follow. i ACORD 101 (2008101)0 2008 ACORD CORPORATION, All rights reserved, The ACORD natne and logo are registered marks of ACORD T of 3 3959288 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 714) 536-5227 • www.huntingtonbeachca.gov Office of the City Clerk Robin Estanislau, City Clerk February 9, 2021 Waymakers Attn: Ronnetta Johnson 1221 E. Dyer Road, Suite 120 Santa Ana, California 92705 Dear Ms. Johnson: Enclosed is a copy of the "Professional Services Contract between the City of Huntington Beach and Waymakers for Victim and Witness Assistance Services" approved by the Huntington Beach City Council on January 19, 2021. Sincerely, Robin Estanislau, CMC City Clerk RE:ds Enclosure Sister Cities: Anjo, Japan Waitakere, New Zealand 289 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-925 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Chris Davis, Senior Administrative Analyst Subject: Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for Sanitary Sewer System Manhole SmartCovers Statement of Issue: Submitted for City Council approval is a Sole Source Procurement Request for Hadronex Inc., dba SmartCover Systems, in the amount of $75,000 per year for the service of Sanitary Sewer System Manhole SmartCovers (SmartCovers). Financial Impact: No additional funding is requested. Sufficient funds for servicing the SmartCovers are budgeted in the FY 2022/2023 Sewer Service Fund account 51185201.64620. Recommended Action: Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for the servicing of SmartCovers. Alternative Action(s): Do not approve the Sole Source Procurement Request and direct staff accordingly. While new technology is becoming available in the market, the City would need to test it to determine if it is compatible with the City’s system. Denial of the Sole Source Procurement Request would mean that the Wastewater Division would but unable to service existing Smartcovers in the City’s Sanitary Sewer System, thereby decreasing the ability of City staff to respond in a timely manner to Sanitary Sewer Overflows (SSO). SSOs can impact public health, disrupt local businesses and, if located close to the coast, result in beach closures. Additionally, the City could be subject to fines ranging from $50,000 to $250,000 by the Regional Water Quality Control Board for failure to adhere to Section 4 Operations and Maintenance in the Sanitary Sewer Management Plan (SSMP). Analysis: City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™290 File #:22-925 MEETING DATE:2/7/2023 SmartCovers are manhole covers that help the City better manage the sanitary sewer system. These devices transmit real time data on the level of the sewage within the sewer system via an antenna mounted under the manhole cover. The SmartCovers are located at strategic points in the City’s sanitary sewer system and can prevent or mitigate potential Sanitary Sewer Overflows (SSOs) by providing advance warning before the system overflows. In the past, City staff would respond to SSOs after they had already occurred, which resulted in extensive and costly cleanups. SSOs pose a significant threat to public health and safety, cost tens of thousands of dollars in staff time and city resources, and have extensive reporting requirements to the State. SSOs cause major economic impacts to neighboring residences and businesses and can ultimately result in beach closures. SmartCovers provide advance warning of potential issues and facilitate proactive emergency response as a standard practice. Our currently deployed SmartCovers have helped prevent 20 potential SSOs since 2016. This sole source procurement is requested in accordance with Chapter 3.02 of the City of Huntington Beach Municipal Code, as there is no alternative vendor. The City first purchased SmartCovers in 2016 and has installed 31 SmartCovers to date. SmartCover Systems is the only vendor available to service the SmartCovers in the City’s inventory. This sole source request is for servicing the existing inventory as well as to purchase any necessary replacement parts. 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: Infrastructure & Parks Attachment(s): 1. Sole Source Justification 2. Power Point Presentation City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™291 292 293 294 Sole Source Procurement for Hadronex dba SmartCover January 17, 2023 295 SmartCover • Sensors attached to City Sewer Manholes to detect potential Sanitary System Overflows (SSO). • 31 SmartCovers in the City’s sewer system located at potential overflow sites have prevented at least 20 SSOs. • Sole Source is for service of existing SmartCovers. • Proprietary software is only compatible with SmartCover components. • First selected in 2016, only supplier at the time. 296 Why Sole Source Needed • While new technologies are being developed, they need to be tested for compatibility and reliability. • Without SmartCovers, the City will lose the ability to proactively respond to SSOs before they happen. • SSO’s impact the health and safety of local residents and businesses. Can result in significant fines from the Regional Water Quality Control Board ranging from $50,000 to $250,000 and can also cause closure of the beach. 297 Questions? 298 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-926 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Chris Davis, Senior Administrative Analyst Subject: Approve Sole Source Procurement Request for Aclara for service and maintenance on Automated Meter Infrastructure (AMI) equipment. Statement of Issue: Submitted for City Council approval is a Sole Source Procurement request for Aclara for service and maintenance on Automated Meter Infrastructure (AMI) equipment, in the amount of $250,000 per year. Financial Impact: No additional funding is requested. Sufficient funds for this service is included in the FY 2022-23 Budget in Water Enterprise Fund Business Unit 50685805.84300. Recommended Action: Approve the Sole Source Procurement Request with Aclara for service and maintenance on AMI equipment. Alternative Action(s): Do not approve Sole Source Procurement Request and direct staff accordingly. Denial of the Sole Source Procurement Request would result in delay of maintaining the City’s stock of approximately 55,000 meters. This could result in lost revenue from faulty meter reads and inability to detect leaks in customers’ water service. Additionally, should the project be re-bid and a competitor succeed, this would require the City to maintain two sets of meters and require training of staff for both types. Analysis: The Public Works Utilities Division water meter section recently completed the transition of the city’s meter system to an Automated Meter Infrastructure (AMI) system. The City began a pilot program to implement an AMI system in 2006. AMI provides a continuous read of water usage from each customer's meter that is wirelessly transmitted to staff. This provides better accuracy of water usage City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™299 File #:22-926 MEETING DATE:2/7/2023 amounts and also eliminates the need for the City to hire staff must access customers’ properties to manually read their meters. Aclara was chosen as the vendor for the pilot program. In 2020, the City completed a fifteen-year program to convert all meters to AMI. However, the Aclara software does require an annual maintenance charge. Additionally, components do need to be replaced or repaired due to attrition. Aclara Automated Infrastructure software system and communication components are installed at each of the approximately 55,000 water service connection meters in the City. No other AMI system is compatible with Aclara. This sole source procurement is requested in accordance with Chapter 3.02 of the City of Huntington Beach Municipal Code, as there is no alternative vendor. Parts from other vendors would not be compatible with the City's AMI system, nor would a different vendor be able to service Aclara parts and software. Likewise, it would be economically prohibitive to have different systems for different parts of the City due to the need to hire additional staff for each system and store parts for each system. 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: Non Applicable - Administrative Item Attachment(s): 1. Sole Source Procurement Request 2. Power Point City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™300 301 302 303 Sole Source Procurement for Aclara January 17, 2023 304 Aclara • Provide Software and Communications Components for the City’s Automated Meter Infrastructure • Approximately 55,000 meters in the City’s water system • Proprietary software that is only compatible with Aclara components • Originally Selected in 2006 as part of a pilot program on about 400 meters. 305 Why Sole Source Needed • City Staff could require additional staff to operate two parallel systems • Utilities Warehouse space would be needed to store two types of components • Rejection of sole source could lead to attrition with City’s water meter communications system, leading to misreads, and subsequently, potentially greater water loss and revenue loss to the City. 306 Questions? 307 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-1126 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Chris Davis, Senior Administrative Analyst Subject: Approve and authorize execution of a three-year Professional Services Agreement with Sierra Analytical Labs Inc. for Water Quality Analysis and Sampling Services in the amount of $360,000 Statement of Issue: Submitted for City Council approval is a professional services agreement with Sierra Analytical Labs for Water Quality Analysis and Sampling Services. Financial Impact: Funding in the amount of $120,000 is included in the Fiscal Year 2022/23 approved budget in Water Fund account 50685802.69365. Funding for future years will be requested during the appropriate budget submissions. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract between the City of Huntington Beach and Sierra Analytical Labs, Inc. for Water Quality Analysis and Sampling Services.” Alternative Action(s): Do not approve the professional services agreement. If the agreement is not approved, the City would be required to perform in-house testing and analysis required by State and Federal regulations. This in-house work would require hiring laboratory staff; testing supplies, equipment, and media; and application and assessment fees which are anticipated to cost more than the annual amount to contract with Sierra Analytical Labs. Analysis: All potable water in Huntington Beach meets or exceeds State and Federal standards. The City contracts with a State-approved laboratory to collect and analyze 40 bacteriological samples per City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™308 File #:22-1126 MEETING DATE:2/7/2023 week from the City’s water production and distribution system, as-required sampling and analysis during new pipeline construction and pipeline repair activities, and for lead and copper compliance testing as required by the State Water Resources Control Board Division of Drinking Water. The contract for the current contractor for water quality sampling and analyses expired in December 2022 and as a result, the City requires a new vendor to perform these essential services. Requests for Proposals were posted on the Planet Bids website on August 17, 2022 in accordance with Huntington Beach Municipal Code Chapter 3.02. The Finance Department received bids for two qualified vendors, Sierra Analytical Labs, Inc. and Enthalpy Analytical. Sierra Analytical Labs received the highest rating from all three members of the proposal review panel. Sierra is considered one of the top water quality laboratories in the region, and the City has had a successful relationship with them in the past. 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. Professional Services Agreement with Sierra Analytical Labs, Inc. 2. Power Point Presentation City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 Professional Services Agreement with Sierra Analytic Labs City Council February 7, 2023 336 Sierra Analytic Labs • Water Quality Analyses and Sampling • 3 Year Agreement • $120,000 per year • Assist staff in collecting and analyzing 40 bacteriological samples per week from City’s potable water production and distribution system • Bid in accordance with HBMC Chapter 3.02 • If not approved, additional staff will be required to collect samples in order to meet State and Federal water quality requirements 337 Questions? 338 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-048 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Brian Polivka, Contract Administrator Subject: Accept bid and authorize execution of a construction contract with MBC Enterprises, Inc. in the amount $482,897.59 for the Glen Mar Frontage Road Improvements Project, CC-1688 Statement of Issue: On December 22, 2022, bids were received for the Glen Mar Frontage Road Improvements Project, CC-1688. Following a review of the bids, it is requested that the City Council award a construction contract to MBC Enterprises, Inc., the lowest responsive and responsible bidder. Financial Impact: Total construction cost for the project, including the base bid and additive alternative Schedule D, contingency and supplemental expenses is $500,000, an amount that has been approved within the FY 2021/22 Capital Improvement Program from the Infrastructure Fund, Account Number 31440005.82300. Recommended Action: A) Accept the lowest responsive and responsible bid submitted by MBC Enterprises, Inc. in the amount of $438,997.81; and, B) Authorize the Mayor and City Clerk to execute a construction contract in the form approved by the City Attorney. Alternative Action(s): Reject staff recommendation and direct staff to: A) Reject all bids and rebid the project, or B) Revise the proposed contract award to MBC Enterprises, Inc. to reduce the project scope to only the base project scope Schedule A and not include the Additive Alternative Schedule D. This would reduce total project cost to a total of $427,852.30 City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™339 File #:23-048 MEETING DATE:2/7/2023 C) Revise the proposed contract award to MBC Enterprises, Inc. to increase the project scope to include the base project scope Schedule A and all of the Additive Alternative scope options, Schedule B, C and D. $1,070,789.68 of additional funding is necessary for this option that represents complete project scope for a total contract cost of $1,570,789.68. Analysis: The Glen Mar tract is bounded by Yorktown Avenue, Newland Street, Adams Avenue and Magnolia Street. The tract is surrounded by frontage roads that parallel the arterial streets. Between the arterial streets and the frontage road lies frontage medians. Those medians have not had significant investment since the tract was built in the early 1970’s. Glen Mar tract residents have raised concerns regarding the condition of the existing Glen Mar tract frontage road landscape and fence structure. To address these concerns, the City funded $50,000 within the FY 20/21 budget for initial improvements that occurred at a few of the entrance locations to the tract. In FY 21/22 the City Council approved $500,000 within the Capital Improvement Program to complete a larger portion of the median renovation. These renovations include repair to support pilasters, fence replacement, asphalt removal, tree replacement and landscaping. With construction costs increasing rapidly, the project has been designed and bid with a base phase and several optional sections (additive alternatives). These sections were divided based on priorities expressed from the neighborhood. The base phase is labeled as Schedule A and was identified as the highest priority by the community. The remaining work, Additive Alternatives B, C and D are to be considered for inclusion in the project per bids received and budget allowance. Bids were opened on December 22, 2022 and are listed in ascending order below. Basis of Award for the project is the total price for all scope including the base bid Schedule A and Additive Alternatives Schedule B, C and D. Bidder Submitted Bid 1 MBC Enterprises, Inc.$ 1,308,991.40 2 KASA Construction, Inc.$ 1,510,752.50 3 Rolcom Corporation $ 1,876,410.00 4 Legion Contractors $ 2,165,369.50 The lowest responsive and responsible bidder, MBC Enterprises, Inc., bid the project as outlined below: Base Bid “Schedule A” $356,543.58 Additive Alternative “Schedule B” $511,137.42 Additive Alternative “Schedule C” $358,856.17 Additive Alternative “Schedule D” $ 82,454.23 City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™340 File #:23-048 MEETING DATE:2/7/2023 To stay within budget, the total cost of the proposed project including base bid “Schedule A” and Additive Alternative Schedule D is $500,000 as outlined below: Base Bid “Schedule A” $356,543.58 Additive Alternative “Schedule D” $ 82,454.23 10% Construction Contingency $ 43,899.78 Construction Administration $ 17,102.41 Total $500,000.00 This phase of work represents Phase II. Additional funding for future phases will be considered for City Council approval within the FY 23/24 Budget. CIAB/Public Works Commission Action: The CIAB/Public Works Commission recommended this project on January 18, 2023, by a vote of 7- 0. Environmental Status: The project is Categorically Exempt pursuant to the California Environmental Quality Act, Section 15301. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Vicinity Map 2. PowerPoint Presentation City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™341 342 Glen Mar Frontage Road Improvement Project 343 Table of Contents •Project Overview •Project History -Current Condition -Prior Improvements •Project Scope •Project Phasing •Questions 344 Project Overview •Construction bids received in December 2022 •Total Funding - $500,000 (Infrastructure Funds) •Request award to lowest bidder – MBC Enterprises, Inc. •Recommended action includes award of: -Base Bid scope (Schedule A) -Additive Alternative scope (Schedule D) •Alternative actions: -Reject all bids -Award base bid scope only (Schedule A) –> Total Cost = $427,852.30 -Award complete project scope (Schedule A, B, C, D) -> Total Cost = $1,570,789.68 345 Project History - Current Condition 346 Project History - Prior Improvements 347 Project Scope •Monument Sign Renovation •Pilaster Renovation •Fencing Removal & Replacement •Street Tree Removal & Replacement •Landscape Improvements -Asphalt removal -Mulch and plant bedding -Irrigation 348 Project Phasing •Project Budget - $500,000 •Project Bid with alternatives for budget consideration •Phased Construction -4 total sections -Budget allows for completion of 2 sections (A & D) •City to seek approval for additional funding in FY23/24 349 Questions? 350 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-061 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Lili Hernandez, Senior Civil Engineer Subject: Grant of Easement to Southern California Gas Company for new gas utility line extension at 6900 Brunswick Drive, a location known as North Greer Park Parcel Statement of Issue: It is requested that the City Council approve execution of a Grant of Easement to Southern California Gas Company (SCGC) to extend a new gas utility line within 6900 Brunswick Drive (North Greer Park) that will provide gas service to a City-owned gas generator for the new sewer lift station on McFadden Avenue. Financial Impact: No funding is required for this action. Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute the Grant of Easement between the City of Huntington Beach and Southern California Gas Company; and, B) Authorize the City Clerk to record the Grant of Easement with the Orange County Recorder. Alternative Action(s): Do not authorize execution of the Grant of Easement between the City of Huntington Beach and SCGC, and provide staff with an alternate action. One alternative is to utilize propane as an alternative source of energy. However, a propane tank will require the City to increase the size of the block wall enclosure around the generator, and its use would also be less secure and less reliable than natural gas service. Additionally, using propane necessitates a fueling service contract, yearly inspections, and state permits. Lastly, the contract for the sewer lift station and natural gas generator is already in construction. If the City were to remove the natural gas service from the project, it would still remain responsible to City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™351 File #:23-061 MEETING DATE:2/7/2023 fund construction costs expended to date. Analysis: Public Works is currently constructing a sewer lift station at McFadden Avenue and Dawson Lane. The project includes installation of a natural gas powered generator in North Greer Park located at 6900 Brunswick Drive. The generator will provide an emergency back-up power source to the new sewer lift station in the event of an electrical power outage. This requires SCGC to extend a 2-inch gas line from Goldenwest Street, head west in McFadden Avenue, and terminate at the new generator location. Pursuant to the definition of “street” in the Franchise Agreement per Ordinance No. 3880, the agreement authorizes SCGC to construct, access, and maintain gas facilities only within public streets, ways, alleys and places, state highways, and freeways. Because this portion of McFadden Street is technically not a public street, SCGC is requesting a 40-foot (length) by 10-foot (width) easement to construct, access, and maintain a 2-inch gas line within the southerly portion of the North Greer Park parcel. Environmental Status: The project is categorically exempt pursuant to Section 15304 of California Environmental Quality Act. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Power Point Presentation 2. Location Map - Gas Powered Generator 3. Southern California Gas Company - Proposed Grant of Easement 4. Exhibits A and B - Proposed Legal Description and Plat 5. Franchise Agreement between the City of Huntington Beach and Southern California Gas Company per Ordinance No. 3880 dated May 17, 2010 6. Recorded Grant Deed for 6900 Brunswick Drive dated August 24, 1961 City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™352 MCFADDEN SEWER LIFT STATION REPLACEMENT (CC1610) SOUTHERN CALIFORINA GAS COMPANY GRANT OF EASEMENT FOR NEW GAS LINE EXTENSION 353 Project Purpose Gas Powered Generator Purpose: • Provides critical back up power during an electrical power outage. • Allows sewer lift station pumps and equipment to continue to operate without interruption. • Prevents local area from sanitary sewage overflow, spills and flooding. • Prevents sewerage spill fines issued by Santa Ana Regional Water Quality Control. • Increases response time compared to manual generator set up by staff. To extend SCGC gas line to supply natural gas to emergency generator for McFadden Sewer Lift Station (CC1610) 354 Grant of Easement Request New traffic open office, above left, and private office, above right. Analysis: • New 2-inch gas line extension required to supply natural gas to emergency generator. • North Greer Park existing parcel line extends to McFadden Street centerline. • Existing SCGC Franchise Agreement defines public right of way as public streets, ways, alleys and places, state highway and freeways. • To comply with Franchise Agreement, SCGC requests Grant of Easement to construct, access, and maintain gas line within a 40’x10’ easement. EXISTING SCGC GAS LINE PROPOSED 2” SCGC GAS LINEPROPOSED 40’ X 10’ GRANT OF EASEMENT EXISTING PARCEL LINE MCFADDEN SEWER LIFT STATION (UNDER CONSTRUCTION) MCFADDEN AVE GOLDENWEST STDAWSON LNNORTH GREER PARK - 6900 BRUNSWICK DRIVE 355 Questions? 356 NORTH GREER PARK – 6900 BRUNSWICK DRIVE LOCATION MAP Proposed 2” SoCal Gas Line Proposed Gas Powered Generator Proposed 40’x10’ Easement Dedication McFadden Avenue Goldenwest Street Existing Parcel Line 357 358 359 360 361 GOLDENWEST STREET℄MCFADDEN AVENUE (FORMERLY SUGAR AVENUE) ℄ BRUNSWICK DRIVE EXHIBIT "B" HUNTINGTON BEACH, CALIFORNIA 6900 BRUNSWICK DRIVE DMC ENGINEERING CKXKN ¾ SWTXG[KPI ¾ PNCPPKPI ¾ CQPUVTWEVKQP Tel: (949) 753-9393 18 Technology Drive, Suite 100, Irvine, California 92618 E-Mail: dmc@dmceng.com ¿ www.dmceng.com EXHIBIT "B" MELBOURNE DRIVEYORKSHIRE LANEJ:\JOBS\1252_City of HB On Call Consulting Svcs\1252-712_6900 Brunswick Dr\dwg\1252-712_Legal.dwg, 11/21/2022 11:10:49 AM362 Director of Iub1ic Works APPROVED AS TO FORM: C(i-tg;Attorney •/O D APPROVED:REVI City Clerk Administrator ORDINANCE NO. 3880 AN ORDINANCE GRANTING TO SOUTHERN CALIFORNIA GAS COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO CONSTRUCT, MAINTAIN AND USE PIPES AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON, AND UNDER THE PUBLIC STREETS AND PLACES WITHIN THE CITY OF HUNTINGTON BEACH. The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The City of Huntington Beach hereby grants a gas pipeline franchise to Southern California Gas Company. SECTION 2. The franchise is granted in accordance with the terms and conditions set forth in the attached Pipeline Agreement between the City of Huntington Beach and Southern California Gas Company to construct, maintain and use pipes and appurtenances for transmitting and distributing gas for any and all purposes in, along, across, upon, and under the public streets and places within the City of Huntington Beach which agreement is incorporated herein by this reference. SECTION 3. Charter Sections 550(a) and 615 requires that a franchise shall be granted by ordinance. SECTION 4. This ordinance shall become effective 30 days after this adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of may , 2010. ATTEST: INITIATED AND APPROVED: 363 Ordinance No. 3880 AN AGREEMENT GRANTING TO SOUTHERN CALIFORNIA GAS COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO CONSTRUCT, MAINTAIN AND USE PIPES AND APPURTENANCES FOR '1 RANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON, AND UNDER THE PUBLIC STREETS AND PLACES WITHIN THE CITY OF HUNTINGTON BEACH This Franchise Agreement (Agreement) adopted by ordinance of the City of Huntington Beach is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California hereinafter referred to as 'City" and Southern California Gas Company, a , hereinafter "Grantee ' SECTION 1 DEFINITIONS Whenever in this Agreement the words or phrases hereinafter in this section defined are used, they shall have the respective meaning assigned to them in the following definitions (unless, in the given instance the context wherein they are used shall clearly import a different meaning) (a) The word "Grantee" shall mean Southern California Gas Company, and its lawful successors or assigns, (b) The word "City" shall mean the City of Huntington Beach, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form, (c) The word "streets" shall mean the public streets, ways alleys and places as the same now or may hereafter exist within the City, including state highways, now or hereafter established within the City, and freeways hereafter established within the City, (d) The word franchise shall mean and include any authonzation granted hereunder in terms of a franchise, pnvilege, permit license or otherwise to construct, maintain and use pipes and appurtenances for the business of transmitting and distnbutmg gas for all purposes under, along, across or upon the public streets, ways alleys and places in the City, and shall include and be in lieu of any existmg or future City requirement to obtain a license or permit for the pnvilege of transacting and carrying on a busmess within the City Any proposed telecommunication facilities not related with gas utility services or other non-gas system uses must be approved by the City under a separate franchise or other applicable permit (e) The phrase "pipes and appurtenances" shall mean pipes, pipelines, mains, services, traps, vents, cables conduits, vaults manholes, meters, appliances, associated communications infrastructure, attachments, appurtenances, and any other property located or to be located in, upon, along, across, or under the streets of the City, and used or useful in the transmitting ancUor distributing of gas, (f) The word "gas" shall mean natural or manufactured gas, or a mixture of natural and manufactured gas, (g) The phrase "construct, maintain, and use" shall mean to construct, erect, Page 1 of 7 09 2035 003/46006 364 Ordinance No. 3880 install lay, operate, maintain, use, repair, or replace and (h) The phrase "gross annual receipts" shall mean gross operating receipts received by Grantee from the sale of gas to Grantee's customers less uncollectible amounts and less any refunds or rebates made by Grantee to such customers pursuant to California Public Utilities Commission ("CPUC") orders or decisions SECTION 2 PURPOSE AND 1ERM (a) That the right, privilege and franchise, subject to each and all of the terms and conditions contained in this Agreement, and pursuant to the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of California, known as the Franchise Act of 1937, be and the same is hereby granted to Grantee to construct, maintain and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the streets of the City for a twenty-five (25) year term from and after the effective date hereof (January 1, 2010) (b) Early Termination In the event the CPUC has not approved Grantee's application for imposition of a surcharge for payment of the franchise fee in the manner provided for in Section 3(a)(2) within eighteen (18) months of the effective date of this Agreement, or if the CPUC has denied Grantee's application as filed, then at the request of either party, the parties shall meet and confer to determine the proper compensation for the remaining term of this franchise If no agreement on compensation is reached by the parties prior to a date that is twenty-one (21) months after the effective date of this franchise Agreement, then this Agreement and the franchise granted herein shall terminate and be of no further force and effect (c) City shall have the right to terminate this franchise by ordinance, at any time should any of the following events occur (i) the Grantee fails to comply with any material provision hereof or (n) the City purchases (through its power of eminent domain or otherwise) all of the franchise property of Grantee The Grantee shall be given ninety (90) days written notice prior to the beginning of any termination proceeding SECTION 3 CONSIDERATION (a) The Grantee shall pay to the City at the times hereinafter specified in lawful money of the United States, a total annual franchise fee commencing as of January 1 2010, that is equal to the sum of three (3) plus either one (1) or two (2) below (whichever is then in effect) as follows 1 The higher of (i) Two percent (2%) of the gross annual receipts of the Grantee derived from the use operation or possession of this franchise or (n) One percent (1%) of the gross annual receipts of the Grantee derived from the sale, transmission or distribution of gas, within the limits of the City under this franchise 2 Grantee shall apply to the CPUC with the City's concurrence for authority to implement a franchise fee surcharge to be charged solely on the City's ratepayers to recover an additional one percent (1%) of gross annual receipts for a total payment to the City based on two percent (2%) of gross annual receipts from the sale, transmission, or distribution of gas Page 2 of 7 09 2035 003/46006 365 Ordinance No. 3880 within the limits of the City as described in Section 1(n) above After receipt of CPUC approval acceptable to Grantee, Grantee shall calculate and pay the City as of the first day of the quarter immediately following receipt of such approval, the higher of the following two formulas instead of the payment pursuant to Section 1 above (i) Two percent (2%) of the gross annual receipts of the Grantee derived from the use, operation or possession of its franchise, or (n) Two percent (2%) of the gross annual receipts of the Grantee derived from the sale, transmission, or distribution of gas, within the limits of the City under this franchise 3 In addition to either Section 1 or Section 2 above (whichever is then in effect), Grantee shall also pay Grantor an In Lieu Fee which is that certain fee described in the "Mumcipal Lands Use Surcharge Act," Chapter 2 5 of Division 3 of the California Public Utilities Code (b) The franchise fee shall be paid in four installments The first three installments shall be based on the total gross receipts of the preceding calendar quarter employing the formula of subsection a 1 (n) or a 2 (n) above (whichever is then in effect), plus the amount of the In-Lieu Fee of Section a 3 for the preceding calendar quarter The final installment shall be a true up mstallment using the applicable formula from either subsection a 1 or a 2 above (whichever is then in effect) plus the In-Lieu Fee under Section a 3 above plus any adjustment, if applicable, as provided in Section (c) for the total franchise fee Each installment shall be paid to the City on or prior to the twenty-fifth (25 th ) day of the second month following the respective quarter for which payment is made, except for the final quarterly -true up payment for the year, which shall be paid on or prior to March 31st For example, the installment for the first quarter of the year (January through March) shall be paid to the City no later than May 25 th (c) Any overpayment shall be recovered by Grantee by setoff agmnst future installments, or, if the franchise has been terminated such overpayment, or the balance thereof, shall be payable by City to Grantee upon submission of a written claim, under penalty of perjury, to the City Clerk within two years of the overpayment Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto (d) The Grantee shall file with the City Clerk within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting hereof, and within three (3) months after the expiration of each and every calendar year thereafter, a duly verified statement showing m detail the total gross annual receipts and Surcharge Payment of such Grantee during the preceding calendar year or such fractional calendar year, from the sale of gas within the City (e) In the event the legislature amends Division 3, Chapter 2, of the Pubhc Utilities Code during the term of this Franchise whereby the City is allowed by change in the Act -to increase the amount that may be charged to the Grantee, then the City may implement the allowed increased payment together with all other associated changes to the Act by amending this Agreement by ordinance and consistent with the City's Charter The changes, including the payment of the increased fee amount, shall be applicable as of the first day of the month following the effective date of such amendment Page 3 of 7 09 2035 003/46006 366 Ordinance No. 3880 SECTION 4 OTHER FRANCHISES This grant is made in lieu of all other gas utility franchises owned by the Grantee, or by any successor of the Grantee to any rights under this franchise, for transmitting and distributing gas within the limits of the City, as said hints now or may hereafter exist, and the acceptance of the franchise hereby granted shall operate as an abandonment of all such gas utility franchises within the limits of this City, as such limits now or may hereafter exist, in lieu of which this franchise is granted This Grant after its effective date also supersedes the Revocable License executed by the parties in December 2009 SECTION 5 OBLIGATIONS OF GRANTEE (a) All facilities or equipment of Grantee shall be constructed, installed and maintained m accordance with and in conformity with all of the ordinances, rules and regulations heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police powers and not in conflict with the paramount authority of the State of California, and as to state highways, subject to the provisions of the general laws relating to the location and maintenance of such facilities (b) If any portion of any street shall be damaged by reason of defects m any of the pipes and appurtenances maintained or constructed under this grant, or by reason of any other cause ansing from the operation or existence of any pipes and appurtenances constructed or maintained under this grant, Grantee shall at its own cost and expense, immediately repair any such damage and restore such portion of such damaged street to as good condition as existed before such defect or other cause of damage occurred (c) The Grantee shall pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this franchise (d) Except for such losses or damages caused by the sole negligence or willful misconduct of City and any officers and employees, grantee shall indemnify, save, and hold harmless, City and any officers and employees thereof against and from all damages, judgments, decrees costs and expenditures which City, or such officer or employee may suffer, or which may be recovered from or obtainable against City or such officer or employee, for or by reason of, or growing out of or resulting from the exercising by Grantee of any or all of the nghts or privileges granted hereby, or by reason of any act or acts of Grantee or its servants or agents in exercising the franchise granted hereby, and Grantee shall defend any suit that may be instituted against City, or any officer or employee thereof, by reason of or growing out of or resulting from the exercise by Grantee of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Grantee, or its servants or agents, in exercising the franchise granted hereby SECTION 6 REMOVE OR RELOCATE FACILITIES (a) City shall have the nght for itself to lay, construct erect, install, use, operate, repair replace, remove relocate or maintain below surface or above surface improvements of any type or description in, upon, along, across, under or over the streets of the City Page 4 of 7 09 2035 003/46006 367 Ordinance No. 3880 Further City shall have the nght to change the grade, width or location of any street or improve any street in any manner, including but not limited to the laying of any sewer storm dram, drainage facility, or construct and install any pedestrian tunnel, traffic signal, street lighting facility or other public improvement, provided, however, that nothing herein is intended to expand or limit the duty of Grantee to relocate at its expense under CPUC Section 6297 or common law If such work shall require a change m the position or location of any Grantee's facilities or equipment, Grantee, at its sole expense, within ninety (90) days after written notice from the Public Works Director, shall commence the work of doing any and all things to effect such change in position or location in conformity with the Public Works Director's written instructions Grantee shall proceed promptly to complete such required work (b) Irrespective of any other provision of this Agreement, Grantee's right to construct mamtam, and use, or remove pipes and appurtenances thereto shall be subject at all times to the right of the City, in the exercise of its police power to require the removal or relocation of said pipes and appurtenances thereto at the sole cost and expense of Grantee, except (1) as the law may otherwise provide or, (2) except where Grantee s nght to possession is pursuant to instruments evidencing nght-of-way, easements or other interest in real property, or (3) except where the removal or relocation is made at the request of the City on behalf of or for the benefit of any private developer, CalTrans or other third party (c) In the event that the City is made aware of a project developed by a governmental agency, water company private party or the City that would be located within five hundred feet of a regulator station or other major gas facilities City shall notify Grantee and initiate discussions among the implicated parties in order to assess potential economic and commumty impacts and facilitate coordinated and economically reasonable outcomes (d) In the event the use of any franchise property is discontinued, Grantee shall promptly notify the Public Works Director of any material discontinuance and remove from the street all such discontinued property, unless the Public Works Director permits such property to be abandoned in place m accordance with the requirements of the Public Works Director (subject to applicable requirements of the CPUC) After abandonment, at the option of City, Grantee shall submit to the Public Works Director, an instrument, reasonably approved by the City and Grantee, transfemng to the City the ownership of such franchise property SECTION 7 TRANSFER OR SALE OF FRANCHISE Grantee of the franchise granted hereby shall file with the City Admirustrator and the City Council within thirty (30) days after any sale, transfer, assignment or lease of this franchise or any part thereof, or of any of the rights or privileges granted thereby, written evidence of the same certified thereto by the Grantee or its duly authorized officers This franchise may not be transferred (voluntarily, involuntarily, or by operation of law), leased, or assigned by Grantee except by consent in writing of the City Council which shall not be unreasonably withheld or unreasonably conditioned and unless the transferee or assignees thereof shall covenant and agree to perform and be bound by each and all of the terms hereof, provided, however that the foregoing shall not apply to any sale transfer assignment or lease of this franchise, or any part thereof, or of any of the rights or privileges granted thereby, that has been authonzed by the CPUC or Grantee's inclusion of the franchise as security under a mortgage, deed of trust or other security Agreement securing the repayment of bonds or notes Grantee shall file with the City Clerk and City Page 5 of 7 09 2035 003/46006 368 Ordinance No. 3880 Administrator of the City within thirty (30) days after any sale, transfer, assignment, or lease of this franchise, or any part hereof, or any of the rights or privileges granted hereby, written evidence of the same certified thereto by the Grantee or its duly authorized officers SECTION 8 FORFEITURE This franchise is granted upon each and every condition herein contained Nothing shall pass by the franchise granted hereby to Grantee unless it be granted in plain and unambiguous terms Each of said conditions is a material and essential condition to the granting of the franchise If Grantee shall fail, neglect or refuse to comply with any of the conditions of the franchise granted hereby, and if such failure, neglect or refusal shall continue for more than thirty (30) days after written demand by the City Administrator for compliance therewith, then City, solely by act of the City Council, m addition to all rights and remedies allowed by law, thereupon may terminate the rights pnvilege, and franchise granted in and by this Agreement, and all the nghts, privileges and the franchise of Grantee granted hereby shall thereupon be at an end Thereupon and immediately Grantee shall surrender all rights and privileges m and to the franchise granted hereby No provision herein made for the purpose of securing the enforcement of the terms and conditions of the franchise granted hereby shall be deemed an exclusive remedy or to afford the exclusive procedure for the enforcement of said terms and conditions but the remedies and procedure outlined herein or provided, including forfeiture shall be deemed to be cumulative SECTION 9 ACQUISITION AND VALUATION The franchise granted hereunder shall not in any way or to any extent impair or affect the nght of the City to acquire the property of the Grantee hereof either by purchase of through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee, nor shall this franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by it to the City therefor at the time of the acquisition thereof SECTION 10 PUBLICATION COSTS The Grantee shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting thereof, such payment to be made within thirty (30) days after the City shall have furnished such Grantee with a written statement of such expenses SECTION 11 EFFECTIVE DA I E The franchise granted hereby shall not become effective until the effective date of the Ordinance adopting this Agreement and written acceptance thereof shall have been filed by the Grantee with the City Clerk When so filed, such acceptance shall constitute a continuing Agreement of the Grantee that if and when the City shall thereafter annex or consolidate with additional territory, any and all franchise rights and privileges owned by the Grantee therein shall likewise be deemed to be abandoned within the limits of the additional temtory Page 6 of 7 09 2035 003/46006 369 12Mierior Direotor of Pub c Works APPROVED A$-TO FORM 6 0 Cit'y Attorney Ordinance No. 3880 SECTION 12 WRITTEN ACCEPTANCE After the publication of the Ordinance adopting this Agreement the Grantee shall file with the City Clerk a written acceptance of the franchise hereby granted, and agree to comply with the terms and conditions hereof SECTION 13 PUBLICATION The City Clerk shall certify to the adoption of this Agreement, and within fifteen (15) days after its adoption, shall cause the same (with a list of the councilmembers voting for and against) to be published 111 the Huntington Beach Independent, a newspaper of general circulation published and circulated in the City SECTION 14 AUDIT OF RECORDS The City Treasurer, or any certified public accountant, or qualified person designated by the City, at any reasonable time during business hours may make an examination at the Grantee's office of its books, accounts and records, germane to and for the purpose of verifying the data set forth in the statement required by Section 3(b) IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed by and through their authorized officers on 4471 /5..3 20Z0 SOUTHERN CALIFORNIA GAS COMPANY CITY OF HUNTINGTON BEACH, a ITS (circle one) Chairman/President/Vice President AND print name ITS (circle onel Secretary/Chief Financial Officer Secretary municipal corporation of the State of Cahforma INITIATED AND APPROVED Page 7 of 7 09 2035 003/46006 370 I, Joan L. Flynn, CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on May 27, 2010. In accordance with the City Charter of said City Joan L. Flynn, City Clerk — nii14 • Senior Deputy City Clerk Clerk and ex-officio lerk of the City Council of the City of Huntington Beach, California Ord. No. 3880 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City. Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on May 3, 2010, and was again read to said City Council at a regular meeting thereof held on May 17, 2010, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Coerper, Hardy, Green, Bohr NOES: Carchio, Dwyer, Hansen ABSENT: None ABSTAIN: None 371 BooK 582'7 w, RECORDING REQUESTED BY rynt RECORDED AT REQUEST OF179329 Cr Y OF MJT4?IR9TOw SEACH WHEN RECORDED MAIL TO IN OFFICIAL RECOK—S Qi ORANGE COUNTY, C ALI1 , 9:05 AM AUG 24 1961 FREE RUBY McFARLAND,County Recorder SPACE ABOVE THIS LINE FOR RECORDER'S USE C AFFIX I.R.S.$--------------------IV THIS SPACE Grant Deed THIS FORM FURNISHED BY TITLE INSURANCE AND TRUST COMPANY FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, ESSEX COMPANY, a co—partn.ershtp hereby GRANT(S) to CITY OF HUNTINGTON BEACH, a Municipal Corporation the following described real property in the county of Orange state of California: for municipal purposes including, but not limited to, park, recreational, water, Police and Fire facilities: Dated:. t i ESSEX COMPANY a Co`" €.rtnexshi p a`STATE OF CALIFORNIA SS. By: Voysan Corporation= - ICOUNTYOFOrange 1st Au ust 61 By: On this....... day of 19.._...,before me fi.1.@ !lnd@raq.1 0f .....,a Notary Public in and for said eorge Sand, P.xesident' ` c county and state personally appeared---n.®..me... a._._-w-antt-........ T3ns ney, ecret stry known to me to be the._.................President,and...:.... ...._ . t --- -------------------------known to m e•toa7be the.............................. a' Sacret aty of y.Q1g. .x- CiQR±kf'-4.Q4T..____..._..._ , the cororation that`execu the within instrument and known to me to be the pe ons who executed,tk ithin instrument on behalf of said corporation, said calrpt, - being-knowgxo me to be one of the partners of$$®x E©t .0.TZ.t_#tht pgttaership that executed the within instrument, and acknowl e!N me'4at such corporation executed the same as suchvpartp.er"al that tuch pa Nership executed e. 9'F WIfIN land `tkofcial seal. Title Order No. Se - y"' otary Public in and for sa d County and State Escrow No. Acknowledgment must he used. 398 6-60 372 Being a portion of the Northeast quarter of Section 15, Township S South, Range 11 Nest. San Bernardino Base and s y' Meridian in Rancho La Bolsa Chica and Rancho Las Bolsas in the city of Huntington Beach, county of Orange, state y of California as said section is shown on a map recorded 00 in book 51 page 13 of Miscellaneous Maps in the office of the County Recorder described as follows: Beginning at the southeast corner of the Northeast quarter of Section 15, said corner being the centerline intersection of Golden West Street 60.00 feet wide and Sugar Avenue 40.00 feet wide; thence, South 890 34' 26" Nest along the south line of the Northeast quarter of Section 15 a distance of 230.00 feet to the true point of beginning; thence, continuing along said course South 89. 34' 26" West a distance of 101.85 feet; thence, North 0" 39' 35" West parallel with the east line of the Northeast quarter of Section 15, and the said centerline of Golden Nest Street a distance of• 316.54 feet; thence, North 890 34' 26" East parallel with the south line of the Northeast quarter of Section 15 a distance of 101.85 feet; thence, South 010 39' 35" East parallel with the east line of the Northeast quarter of Section 15 and said centerline of Golden Nest Street a distance of 316.54 feet to a point in the south line of the Northeast quarter of Section 15, said point being the true point of beginning. The above parcel contains 0.740 acre. 373 This is to certify that the interest in real proVerty conveyed by the deed dated August 1. 1961, from the Essex Company, a co-partnership, to the City of Huntington Beach, a municipal corporation, is hereby accepted by order of the City Council of the City of Huntington Beach on August 21, 1961, and the Grantee consents to recordation thereof by its duly authorized officer. Di d'August 24, 1961ate' A City of Huntington Beach By: Paul C. Jones City Clerk 374 RECORDING REQUESTED BY 17 RECORDED AT REQUEST OF J cm 1M 41IxnRsT014 etr tw WHEN RECORDED MAIL TO IN OFFICIAL N.E:G00kL.,S t,2 c Ci ORANGE ,GLIN7Y, '-ALlr. FREE RUBY h9cFAP,L-AN©,Jaunty Recorder SPACE ABOVE THIS LINE FOR RECORDER'S USE •.a^,e® TFI(S SF_tcE THIS FORM FURNISHED 13Y TITLE INSURANCE AND TRUST COMPANY FOR A VALUABLE C.ONSIDERA'NO . receipt of which is hereby acknowledged. ESSEX COMPANN'x', a co- partnership a CITY Off' HU'TNTMGT6N BEACH, a 't'um'. ipal C:orporatioti 04e> fo ilc-wing described real property in the. 0ratiae state of Cal-it'ornia; f ?I' rriuniCIpal purposes including, but not 11m ted. to, xpark, redreational, water, Police ancz F -a? fa(,iWLties: Being a portion of the Nnrtheast quarter of Seetil)zs 15, To"nship 5 South, lunge 11 West, Sara hernardino fuse and Meridian 4n Rancho La Llolsa Chica and Rancho Las Bolsas in the city of Huntington Beach, county of flrangi-, state of Callforn a as said section is shown on a asap recorded in book 51 page is of %isce lancGus Maps in the of.fi -e of i the County Recorder described as follows: Beginning at tie southeast corner of the Northeast juarter f Sectitm A:1, said i.-ornor being tht- cent,.rlinc iniersfct.ion of Golden West "treet 00-00 tet?t Wide $rid :sli':`kr '".'::i i4C: t:o00 feet "Aide; thence, SoLsth 34 ' 2f,., West h ) th f the Il ort"heal' qtu r'ter ri sectj')n J'i 2 3M,3 feet LC` the tr .f` point c)f bogl nir irig .{"i qe e,t'.e eratansiin% 3 In i : ,( ise a / '1 ui"el:'1(',. vtiilf' }:a, ':3rr th a list; s?C'v of 3I6,54 iPr,t; t.hea':ci', North 8nc para , ;.r t L ?i tit;r ; 111 P E,i< NC7i4Ctf.; - l i t o SI.:;t.i n J } a disLanc€,' of ir_y1iQ`) u_s..t. ; LtePi:a 5"ldt. 3g° y? e, 5' East /Dar;31leYl wi tth 0— oast lints f il'!e N3rlheast quarter p L r. lq n f ., i 11 t,n We. s L rtf-1 t distearce of poi it south hate or the No w'hgls$ owarter of 17, id oolnt IN"i g the iruf, })!AW, oixi)ci ka==sxtFrC I 1 40 375 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-088 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Keegan Olds, Contract Administrator Subject: Approve and authorize execution of four (4) Professional Services Contracts for On-Call Construction Management and Engineering Services with Ardurra Group, Inc., Berg & Associates, Inc., Dudek, and Psomas Statement of Issue: The Public Works Department requires professional construction management, inspection, labor compliance, and engineering services on an on-call or as-needed basis to support staff on the construction of state and federally-funded capital improvement projects, which are identified in the annual Capital Improvement Program (CIP). As such, Public Works advertised a Request for Proposals (RFP), based on federal procurement requirements, for these services and recommends awarding four on-call construction management and engineering services contracts. Financial Impact: The City’s adopted Fiscal Year (FY) 2022/23 CIP Budget totals $59.7 million for approved projects citywide. Each approved CIP project has a budget containing sufficient funding for design, environmental, engineering, construction, project management, and other required costs. As such, no additional funding is required by this action. The four (4) recommended construction management contracts, totaling $5.6 million, will be funded within each project’s individual CIP budget, on an as-needed basis. Additionally, construction management and inspection services provided under these contracts will be reimbursable through State and Federal funding. Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Ardurra Group, Inc. for On-Call Construction Management and Engineering Services;” and, B) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™376 File #:23-088 MEETING DATE:2/7/2023 Contract Between the City of Huntington Beach and Berg & Associates, Inc. for On-Call Construction Management and Engineering Services;” and, C) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Dudek for On-Call Construction Management and Engineering Services;” and, D) Approve and authorize the Mayor and City Clerk to execute a $1,400,000 “Professional Services Contract Between the City of Huntington Beach and Psomas for On-Call Construction Management and Engineering Services.” Alternative Action(s): Do not approve the professional services contracts. However, please note that staffing levels and specific expertise are limited and necessitate additional outside support to complete budgeted CIPs. The impacts of not having approved and active on-call contacts that are readily available include: ·Each project would be required to advertise individual Requests for Proposals to procure support, which would require additional time and staff hours to complete. ·When projects have funding that originate from specialized sources (most commonly Federal and State sources), there may be additional procurement requirements placed onto the City tied to those specialized sources. Procuring individual contracts for each capital project and complying with federal/state requirements for every individual project will add staff hours, cost, and time to deliver projects. Analysis: In order to have the ability to obtain reimbursement on federally funded projects, consultants must be procured using the federal process, which differs from the City normal procurement process and involves Caltrans approval. Therefore, on February 7th, 2022 the City advertised a federalized Request for Qualifications (RFQ) for On-Call Engineering Services featuring 5 sub-categories: Construction Management and Inspection, Material Testing and Inspection, Architectural Engineering, Civil Engineering, and Environmental Engineering. Proposals were requested and submitted in compliance with Chapter 3.03 of the Huntington Beach Municipal Code. Seventeen (17) proposals were received for the Construction Management and Inspection sub-category. In accordance with qualifications-based selected procurement, per the Federal “Brooks Act,” State SB 419, and the City of Huntington Beach Municipal Code Section 3.03 “Professional Services,” the Public Works Department established a review board. Proposals were then evaluated and ranked by the review board. The top four (4) firms were selected in the Construction Management category to increase opportunity for competitive proposals for future projects from qualified on-call consultants. The four (4) contracts recommended in this Request for Council Action (RCA) are for support staff for the construction of a wide variety of State and Federally-funded capital improvement projects. These services have historically been utilized to supplement City staff to meet annual CIP goals, as an extension of staff and/or to provide required expertise for unique projects. It is anticipated that these services will be required based on past years. Each project is evaluated on a case by case City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™377 File #:23-088 MEETING DATE:2/7/2023 basis to determine if these as-needed contract services are necessary. The City’s FY 2022/23 CIP totals $59.7 million in new projects. Typical design and construction support cost from the use of consultants on a CIP project can vary between ten to twenty percent (10 -20%) of total costs for a CIP project. Therefore, it is practical to conservatively assume minimum annual construction consultant costs would be around $9 million to the City for total CIP projects or approximately $27 million over the next three (3) years. Professional construction management and inspection services are typically required for most CIP projects, including streets and transportation, water, sewer, stormwater, parks and beaches, and facility improvement projects. Therefore, these consultants were selected to meet projected State and Federally-funded project workload over the next three years with a total contract limit of $1.4 million. The proposed contract amounts are a not-to-exceed amount for a three-year term, with no guarantee of work. Funding for any and all of these contract services is only through City Council authorization in the budget approval process. Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Professional Services Contract between the City of Huntington beach and Ardurra Group, Inc. for On-Call Construction Management and Engineering Services 2. Professional Services Contract between the City of Huntington beach and Berg & Associates, Inc. for On-Call Construction Management and Engineering Services 3. Professional Services Contract between the City of Huntington beach and Dudek for On-Call Construction Management and Engineering Services 4. Professional Services Contract between the City of Huntington beach and Psomas for On-Call Construction Management and Engineering Services 5. Professional Services Award Analysis 6. Professional Services Contract Presentation City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 3 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Construction Management and Inspection SERVICE DESCRIPTION: Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Dudek OVERALL RANKING: 1 out of 17 SUBJECT MATTER EXPERTS/RATERS: 1. Contract Administrator 2. Principal Civil Engineer 3. Contract Administrator V. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 81.2 Dudek – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 21.7 25 Experience with Similar Kinds of Work 16.0 20 Staffing 14.0 15 Capability of Developing Innovative or Advanced Techniques 9.3 10 Familiarity with State and Local Procedures 9.3 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 9.0 10 Total 89 100 VI. DUE DILIGENCE REVIEW • Interview Ranking: N/A Dudek – Summary of Review • NASSCO certified staff, PEs, CCMs, robust staffing • Various innovative techniques – usage of drones, tablet inspection, utility location • Understood scope of projects – HB, OC/LA, other locations Dudek – Pricing • Low end from $100/hr (Admin/Labor compliance) • High end to $310/hr for project director 605 4 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Construction Management and Inspection SERVICE DESCRIPTION: Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Psomas OVERALL RANKING: 2 out of 17 SUBJECT MATTER EXPERTS/RATERS: 1. Contract Administrator 2. Principal Civil Engineer 3. Contract Administrator VII. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 81.2 Psomas – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 22.5 25 Experience with Similar Kinds of Work 15.3 20 Staffing 12.5 15 Capability of Developing Innovative or Advanced Techniques 8.7 10 Familiarity with State and Local Procedures 8.3 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 9.3 10 Total 87 100 VIII. DUE DILIGENCE REVIEW • Interview Ranking: N/A Psomas – Summary of Review • Robust description of tasks and processes • LIDAR and 3D imagery for inspection, training for staff Psomas – Pricing • Low end from $95/hr for Transportation Engineer • High end to $369/hr for CM Lead Engineer 606 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Construction Management and Inspection SERVICE DESCRIPTION: Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Ardurra Group OVERALL RANKING: 3 out of 17 SUBJECT MATTER EXPERTS/RATERS: 1. Contract Administrator 2. Principal Civil Engineer 3. Contract Administrator I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 81.2 Ardurra Group – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 22.5 25 Experience with Similar Kinds of Work 16.0 20 Staffing 11.5 15 Capability of Developing Innovative or Advanced Techniques 7.0 10 Familiarity with State and Local Procedures 9.7 10 Financial Responsibility 9.3 10 Demonstrated Technical Ability 9.0 10 Total 85 100 II. DUE DILIGENCE REVIEW • Interview Ranking: N/A Ardurra Group – Summary of Review • Excellent staffing experience – PMP/CCM certs on staff ensure project delivery • Com pleted projects and proposal description show detailed understanding of required scope • Ardurra Group – Pricing • Low end from $105/hr (Public W orks Technician) • High end to $338/hr for Principal-in-charge 607 2 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Construction Management and Inspection SERVICE DESCRIPTION: Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Berg & Associates, Inc OVERALL RANKING: 4 out of 17 SUBJECT MATTER EXPERTS/RATERS: 1. Contract Administrator 2. Principal Civil Engineer 3. Contract Administrator III. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 81.2 Berg & Associates – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 23.3 25 Experience with Similar Kinds of Work 17.3 20 Staffing 10.5 15 Capability of Developing Innovative or Advanced Techniques 8.0 10 Familiarity with State and Local Procedures 8.0 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 5.3 10 Total 83 100 IV. DUE DILIGENCE REVIEW • Interview Ranking: N/A Berg & Associates – Summary of Review • Excellent staffing experience • Various software systems for project management. • Detailed assessment of City projects and understanding Berg & Associates – Pricing • Low end from $129/hr (Asst. PM Contract Admin) • High end to $228.14 (PM) 608 On-Call Construction Management Federally-Compliant Professional Services Contracts 609 On-Call Contract Need: • Construction Management and Inspection of State and Federally-funded CIP Projects • Example Project: Heil Avenue Storm Water Pump Station • Provisions for compliance with state and federal law • Reimbursable under grants • Existing on-call contracts do not include these provisions, do not qualify for reimbursement 610 Details and Selected Firms: • 2022 RFP for Construction Management Services • 17 firms submitted proposals • Qualifications-based selected procurement • Ardurra Group, Inc., Berg & Associates, Inc., Dudek, and Psomas selected • $1.4M 3-year contracts – funded within each projects existing CIP budget as needed • No additional funding necessary 611 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-095 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sean Crumby, Director of Public Works PREPARED BY:Keegan Olds, Contract Administrator Subject: Approve and authorize execution of three (3) Professional Services Contracts for On-Call Materials Testing and Engineering Services with AESCO, Inc., Leighton Consulting, Inc., and Ninyo & Moore Geotechnical & Environmental Sciences Consultants Statement of Issue: The Public Works Department requires professional materials testing, inspection, and engineering services on an on-call or as-needed basis to support staff for State and Federally funded capital improvement projects, which are identified in the annual Capital Improvement Program (CIP). As such, Public Works advertised a Request for Proposals (RFP), based on federal procurement requirements, for these services and recommends awarding 3 Professional Services Contracts for on -call materials testing and engineering services. Financial Impact: The City’s adopted Fiscal Year (FY) 2022/23 CIP Budget totals $59.7 million for approved projects citywide. Each approved CIP project has a budget containing sufficient funding for design, environmental, engineering, construction, project management, and other required costs. As such, no additional funding is required by this action. The three (3) recommended materials testing and inspection contracts, totaling $1.8 million, will be funded within each project’s individual CIP budget, as needed. Additionally, materials testing and inspection services provided under these contracts will be reimbursable through State and Federal funding. Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and AESCO, Inc. for On-Call Materials Testing and Engineering Services;” and, B) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and Leighton Consulting, Inc. for On-Call Materials City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™612 File #:23-095 MEETING DATE:2/7/2023 Testing and Engineering Services;” and, C) Approve and authorize the Mayor and City Clerk to execute a $600,000 “Professional Services Contract Between the City of Huntington Beach and Ninyo & Moore Geotechnical & Environmental Sciences Consultants for On-Call Materials Testing and Engineering Services.” Alternative Action(s): Do not approve the professional services contracts. However, please note that staffing levels and specialized expertise are limited and necessitate additional outside support to complete the budgeted CIPs. The impacts to not having approved and active on-call contracts that are readily available include: ·Each project would be required to advertise individual Requests for Proposals to procure support, which would require additional time and staff hours to complete. ·When projects have funding that originate from specialized sources (most commonly Federal and State sources), there may be additional procurement requirements placed onto the City tied to those specialized sources. Procuring individual contracts for each capital project and complying with federal/state requirements for every individual project will add staff hours, cost, and time to deliver projects. Analysis: In order to have the ability to obtain reimbursement on federally funded project consultants must be procured using the federal process, which differs from the City normal procurement process and involves Caltrans approval. Therefore, on February 7th, 2022 the City advertised a Request for Qualifications (RFQ) for On-Call Engineering Services featuring 5 sub-categories: Construction Management and Inspection, Material Testing and Inspection, Architectural Engineering, Civil Engineering, and Environmental Engineering. Proposals were requested and submitted in compliance with Chapter 3.03 of the Huntington Beach Municipal Code. Eleven (11) proposals were received for the Materials Testing and Inspection sub-category. In accordance with qualifications- based selected procurement, per the Federal “Brooks Act,” State SB 419, and the City of Huntington Beach Municipal Code Section 3.03 “Professional Services,” the Public Works Department established a review board. Proposals were then evaluated and ranked by the review board. The top three (3) firms were selected in the Materials Testing category to increase opportunity for competitive proposals for future projects from qualified on-call consultants. The three (3) contracts recommended in this Request for Council Action (RCA) are for support staff for the construction of a wide variety of State and Federally-funded capital improvement projects. These services have historically been utilized to supplement City staff to meet annual CIP goals, as an extension of staff and/or to provide required expertise for unique projects. It is anticipated that these services will be required based on past years. Each project is evaluated on a case by case basis to determine if these as-needed contract services are necessary. The City’s FY 2022/23 CIP totals $59.7 million in new projects. Typical design and construction City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™613 File #:23-095 MEETING DATE:2/7/2023 support cost from the use of consultants on a CIP project can vary between ten to twenty percent (10 -20%) of total costs for a CIP project. Therefore, it is practical to conservatively assume minimum annual construction consultant costs would be around $9 million to the City for total CIP projects or approximately $27 million over the next three (3) years. Professional materials testing, engineering, and inspection services are typically required for most CIP projects, including streets and transportation, water, sewer, stormwater, parks and beaches, and facility improvement projects. Therefore, these consultants were selected to meet projected State and Federally-funded project workload over the next three years with a total contract limit of $1.8 million. The proposed contract amounts are a not-to-exceed amount for a three-year term, with no guarantee of work. Funding for any and all of these contract services is only through City Council authorization in the budget approval process. Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Professional Services Contract between the City of Huntington beach and AESCO, Inc. for On -Call Materials Testing and Engineering Services 2. Professional Services Contract between the City of Huntington beach and Leighton Consulting, Inc. for On-Call Materials Testing and Engineering Services 3. Professional Services Contract between the City of Huntington beach and Ninyo & Moore Geotechnical & Environmental Sciences Consultants for On-Call Material Testing and Engineering Services 4. Professional Services Award Analysis 5. Professional Services Contracts Presentation City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™614 615 616 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Materials Testing and Engineering SERVICE DESCRIPTION: Materials Testing and Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: AESCO, Inc. OVERALL RANKING: 1 out of 11 SUBJECT MATTER EXPERTS/RATERS: 1. Senior Civil Engineer 2. Contract Administrator 3. Senior Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 96.8 AESCO – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 23.2 25 Experience with Similar Kinds of Work 19.9 20 Staffing 14.8 15 Capability of Developing Innovative or Advanced Techniques 9.2 10 Familiarity with State and Local Procedures 9.9 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 9.9 10 Total 96.8 100 II. DUE DILIGENCE REVIEW • Interview Ranking: N/A AESCO – Summary of Review • 24 hour call availability, excellent staff certs and project experience • Caltrans lab certified, night inspections, watercraft for bridge inspections AESCO – Pricing • Low end from $144.38/hr (Inspector, Construction Manager) • High end to $293/hr for Project manager 748 2 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Materials Testing and Engineering SERVICE DESCRIPTION: Materials Testing and Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Leighton Consulting, Inc. OVERALL RANKING: 2 out of 11 SUBJECT MATTER EXPERTS/RATERS: 1. Senior Civil Engineer 2. Contract Administrator 3. Senior Civil Engineer III. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 94.4 LEIGHTON CONSULTING – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 24.8 25 Experience with Similar Kinds of Work 19.7 20 Staffing 14.8 15 Capability of Developing Innovative or Advanced Techniques 7.3 10 Familiarity with State and Local Procedures 9.9 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 7.9 10 Total 94.4 100 IV. DUE DILIGENCE REVIEW • Interview Ranking: N/A LEIGHTON CONSULTING – Summary of Review • Excellent staffing, previous work experience • Familiar with state and federal procedures (Caltrans certified) • LEIGHTON CONSULTING – Pricing • Low end from $70.42/hr (Sr Technician) • High end to $374.57/hr for Senior Principal Engineer 749 3 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: On-Call Materials Testing and Engineering SERVICE DESCRIPTION: Materials Testing and Engineering support for City’s annual Capital Improvement Program projects using state or federal funding sources. VENDOR: Ninyo & Moore OVERALL RANKING: 3 out of 11 SUBJECT MATTER EXPERTS/RATERS: 1. Senior Civil Engineer 2. Contract Administrator 3. Senior Civil Engineer V. MINIMUM QUALIFICATIONS REVIEW • Written Proposal Score: Ave. of 94.0 NINYO & MOORE – Minimum Qualifications Review Criteria Total Weighted Score Maximum Score Understanding of Work to be Done 23.8 25 Experience with Similar Kinds of Work 18.1 20 Staffing 13.9 15 Capability of Developing Innovative or Advanced Techniques 9.2 10 Familiarity with State and Local Procedures 9.9 10 Financial Responsibility 10.0 10 Demonstrated Technical Ability 9.2 10 Total 94.0 100 VI. DUE DILIGENCE REVIEW • Interview Ranking: N/A NINYO & MOORE – Summary of Review • Great staffing experience, PM • Technical ability high • Innovative techniques – Drones NINYO & MOORE – Pricing • Low end from $57.40/hr (Lab Tech) • High end to $217.42/hr for Geotechnical Engineer/Geologist 750 Materials Testing and Engineering Federally-Compliant Professional Services Contracts 751 On-Call Contract Need: • Materials Testing and Inspection of State and Federally-funded CIP Projects • Example Project: Heil Avenue Storm Water Pump Station • Provisions for compliance with state and federal law • Reimbursable under grants • Existing on-call contracts do not include these provisions, do not qualify for reimbursement 752 Details and Selected Firms: • 2022 RFP for Materials Testing Services • 11 firms submitted proposals • Qualifications-based selected procurement • AESCO, Inc., Leighton Consulting, Inc., and Ninyo & Moore Geotechnical selected • $600k 3-year contracts – funded within each projects existing CIP budget as needed • No additional funding necessary 753 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-027 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Ursula Luna-Reynosa, Director of Community Development PREPARED BY:Hayden Beckman, Senior Planner Subject: Adopt Resolution No. 2023-02 to approve Zoning Text Amendment (ZTA) No. 22-004 regarding Medical Services in the Beach and Edinger Corridors Specific Plan (BECSP) Statement of Issue: The proposed Zoning Text Amendment (ZTA) would amend the Beach and Edinger Corridors Specific Plan (BECSP) to allow Medical Services on the ground floor within the Neighborhood Center Segment. The Planning Commission and staff recommend approval. Financial Impact: Not Applicable. Recommended Action: PLANNING COMMISSION AND STAFF RECOMMENDATION: A) Find that Zoning Text Amendment No. 22-004 is within the scope of the BECSP Program Environmental Impact Report No. 08-008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Sections 15162 and 15163, no subsequent or supplement to the EIR need be prepared for this ZTA and no further environmental review or documentation is required (Attachment No. 1); and, B) Approve Zoning Text Amendment No. 22-004 with findings (Attachment No. 1) and adopt Resolution No. 2023-02, “A Resolution of the City Council of the City of Huntington Beach Approving an Amendment to the Beach and Edinger Corridors Specific Plan (SP14) (Zoning Text Amendment No. 22-004)” (Attachment No. 2). Alternative Action(s): The City Council may make the following alternative motions: 1. Do not approve Zoning Text Amendment No. 22-004. City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™754 File #:23-027 MEETING DATE:2/7/2023 2. Continue Zoning Text Amendment No. 22-004 and direct staff accordingly. Analysis: A. PROJECT PROPOSAL: Applicant: Brian Mills, ROAM Commercial Realty, 30941 Augusta Drive, Laguna Nigel CA 92677 Zoning Text Amendment No. 22-004 is a request to amend the Beach Edinger Corridors Specific Plan (BECSP) to allow Medical Services on the ground floor within the Neighborhood Center Segment. B. BACKGROUND Currently, all Medical Services that are proposed within the Neighborhood Center Segment of the BECSP must be located above the ground floor. In other commercial zoning districts throughout the City, the same uses are permitted on the ground floor. This proposed amendment would allow Medical Services as an allowed use on the ground floor of properties located within the Neighborhood Center Segment of the BECSP. In June 2022, the applicant applied for a ZTA to draft the necessary amendment to the BECSP to allow Medical Services on the ground floor within the Neighborhood Center Segment (Attachment No. 5). C. PLANNING COMMISSION MEETING AND RECOMMENDATION: On January 10, the Planning Commission held a public hearing on the ZTA. The applicant was the only public speaker on the item. No written comments were received prior to the public hearing. The Planning Commission recommended approval of the request to the City Council. Planning Commission Action on January 10, 2023: A motion was made by Twining, seconded by Wood, to recommend to the City Council: 1. Approval of ZTA No. 22-004; and 2. Council consideration for reimbursing the applicant an amount from the application fees collected by the City to initiate the request, carried by the following vote: AYES: Acosta-Galvan, Twining, Pullman, Strook, Rodriguez, Wood NOES: None ABSTAIN: None ABSENT: Adam MOTION PASSED The Planning Commission’s recommendation to City Council also included a request to consider reimbursing the applicant’s fee for a Minor Zoning Text Amendment, in the amount of $20,127. Commissioners expressed an interest in reimbursement given that the applicant’s effort will benefit multiple other property owners within the Neighborhood Center Segment, and the fact that City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™755 File #:23-027 MEETING DATE:2/7/2023 benefit multiple other property owners within the Neighborhood Center Segment, and the fact that any sitting Councilmember could have initiated the ZTA request without incurring a fee. Although staff and the Planning Commission do not have the authority to waive fees, staff researched applicable codes and policies regarding reimbursement procedures, which are established only for applicant-initiated reimbursement requests. Current policy allows for full or partial refunds when an applicant withdraws an application based on where the application is at in the process and how much work has been completed. In this case, staff does not have the mechanism based in current code to enable a full or partial refund of the aforementioned application fee. The decision to reimburse the applicant an amount of the application fee is at the sole discretion of the City Council. D. STAFF ANALYSIS: The January 10, 2023, Planning Commission staff report provides a more detailed description and analysis of the proposed ZTA (Attachment No. 4). In summary, staff and the Planning Commission recommend approval of ZTA No. 22-004 based on the following reasons: 1. It is consistent with general land uses, programs, goals and policies of the General Plan. 2. It addresses a community need for health and wellness by expanding accessibility to Medical Services to a core area of the City, and could facilitate the establishment of new businesses and job creation in the City. 3. It enables property owners more options to lease vacant tenant spaces in existing commercial centers. Environmental Status: ZTA No. 22-004 is within the scope of the BECSP Program Environmental Impact Report No. 08-008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Sections 15162 and 15163, no subsequent or supplement to the EIR need be prepared for this ZTA, and no further environmental review or documentation is required. Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. Suggested Findings of Approval of ZTA No. 22-004 2. Resolution No. 2023-02 for ZTA No. 22-004 3. ZTA No. 22-004 Legislative Draft and Revised BECSP Sections 2.1.5 4. January 10, 2023 Planning Commission Staff Report 5. Narrative received and dated August 22, 2022 6. PowerPoint Presentation City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™756 Attachment No. 1.1 ATTACHMENT NO. 1 SUGGESTED FINDINGS OF APPROVAL ZONING TEXT AMENDMENT NO. 22-004 SUGGESTED FINDINGS FOR PROJECTS EXEMPT FROM CEQA: Zoning Text Amendment (ZTA) No. 22-004 is within the scope of the BECSP Program Environmental Impact Report No. 08-008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Section 15162 and 15163, no subsequent EIR or supplement to the EIR need be prepared for this ZTA and no further environmental review or documentation is required. SUGGESTED FINDINGS FOR APPROVAL - ZONING TEXT AMENDMENT NO. 22-004: 1. Zoning Text Amendment No. 22-004 to amend the Beach and Edinger Corridors Specific Plan to allow Medical Services on the ground floor as an allowable use within the Neighborhood Center Segment is consistent with general land uses, programs, goals, and policies of the General Plan as follows: Land Use Element: Goal LU-11 – Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11(A) – Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B) – Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility. Goal LU-13 – The city provides opportunities for new businesses and employees to ensure a high quality of life and thriving industry. Policy LU-13(A) - Encourage expansion of the range of goods and services provided to accommodate the needs of all residents and the market area. The ZTA will allow essential medical services to be accessible for residents in the core areas of the BECSP planning area which could encourage the establishment of new businesses and job creation within existing vacant or underutilized commercial properties with good locations and accessibility. The expansion of services could also increase sales tax revenues while meeting local and market area needs. Its scope will not affect General Plan land uses or programs. 2. Zoning Text Amendment No. 22-004 is compatible with the uses authorized in, and the standards prescribed for, the zoning district for which it is proposed because it does not propose any new land uses or revise development standards. The proposed ZTA will allow medical uses on the ground floor in an area of the specific plan currently developed with other commercial uses. Medical uses operate similarly to retail uses in that they serve the same customers and operate within similar hours as most retail uses. These uses are commonly found on the ground floor of most commercial properties and contribute to an active pedestrian experience. 757 Attachment No. 1.2 3. A community need is demonstrated for the change proposed because the ZTA allows imperative medical services to be accessible for residents in the “core” areas of the specific plan and will reduce the processing time for indoor veterinary clinics, which could encourage the establishment of new businesses, job creation, and increase sales tax revenues. 4. Its adoption will be in conformity with public convenience, general welfare and good zoning practice because the ZTA will allow medical services on the ground floor within a core area of the City in a manner that is consistent with the zoning code in commercial areas outside of the specific plan planning area. Expanding medical services to the ground floor will provide a public convenience by meeting local market needs while increasing job opportunities and sales tax revenues. The proposed ZTA is good zoning practice because it will provide consistency in the allowable uses between the BECSP and HBZSO, which is applicable in the majority of commercial areas of the City. 758 759 760 1 ZONING TEXT AMENDMENT NO. 22-004 LEGISLATIVE DRAFT (November 23, 2022) Deleted text shown as strikeout 2.1.5 Neighborhood Center (Page 16) Section 2.1.5, Table 2.2 2.2 Building Use Regulations Standards 2.2.1 Use Types 3) Office a) Professional Services permitted (C2) b) Medical Services permitted (C2) Source: Page 16, Beach and Edinger Corridors Specific Plan 761 2 762 PLANNING COMMISSION STAFF REPORT TO: Planning Commission FROM: Ursula Luna Reynosa, Director of Community Development BY: Hayden Beckman, Senior Planner SUBJECT: ..title ZONING TEXT AMENDMENT NO. 22-004 (BECSP MEDICAL SERVICES USE RESTRICTION) REQUEST: To amend the Beach and Edinger Corridors Specific Plan to allow Medical Services on the ground floor as an allowed use within the Neighborhood Center Segment. LOCATION: Beach and Edinger Corridors Specific Plan (BECSP) Planning Area ..body APPLICANT: Brian Mills, ROAM Commercial Realty, 30941 Augusta Drive, Laguna Nigel, CA 92677 PROPERTY OWNER: Various BUSINESS OWNER: Drs. Melissa Ven Dange and Jeremy Chau, STATEMENT OF ISSUE: 1. Are the proposed amendments consistent with the General Plan? 2. Does the project satisfy all the findings required for appro val of a Zoning Text Amendment? 3. Has the appropriate level of environmental analysis been determined? RECOMMENDATION: ..recommendation That the Planning Commission take the following actions: 763 A) Find that Zoning Text Amendment (ZTA) No. 22-004 is within the scope of the BECSP Program Environmental Impact Report No. 08 -008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Sections 15162 and 15163, no subsequent EIR or supplement to the EIR need be prepared for this ZTA and no further environmental review or documentation is required (Attachment No. 1). B) Recommend approval of Zoning Text Amendment No. 22-004 with findings (Attachment No. 1) by approving draft City Council Resolution No. 2022- ---- and forward to the City Council for consideration. ..end ALTERNATIVE ACTION(S): A) Do not recommend approval of Zoning Text Amendment No. 22-004 to the City Council; or B) Continue Zoning Text Amendment No. 22-004 and direct staff accordingly. PROJECT PROPOSAL: Currently, all Medical Services, including medical and dental offices, which are proposed within the Neighborhood Center segment of the BECSP must be located above the ground floor. In most other commercial districts within the city, the same uses are permitted on the ground floor. This proposed amendment would allow Medical Services as an allowed use on the ground floor of properties located within the Neighborhood Center segment of the BECSP ISSUES AND ANALYSIS: General Plan Conformance: The proposed ZTA is consistent with general land uses, programs, goals, and policies of the General Plan as follows: Land Use Element: Goal LU-11 – Commercial land uses provide goods and services to meet regional and local needs. Policy LU-11(A) – Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B) – Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility. Goal LU-13 – The city provides opportunities for new businesses and emp loyees to ensure a high quality of life and thriving industry. 764 Policy LU-13(A) - Encourage expansion of the range of goods and services provided to accommodate the needs of all residents and the market area. The ZTA will allow essential medical services to be accessible for residents in the core areas of the BECSP planning area which could encourage the establishment of new businesses and job creation within existing vacant or underutilized commercial properties with good locations and accessibility. The expansion of services could also increase sales tax revenues while meeting local and market area needs. Its scope will not affect General Plan land uses or programs. Zoning Compliance: Zoning Text Amendment ZTA No. 22-004 includes the following amendments to Book II – Development Code, Sections 2.1.5 (Neighborhood Center, Building Use Regulations) to implement the applicant’s request (Attachment No. 3): 1. Section 2.1.5 (Neighborhood Center), Section 2.2.1 (Use Types), Subsection 3)(b) (Medical Services) – Eliminate Special Conditions “C2” from Medical Services to allow Medical Services on the ground floor of all streets of the Neighborhood Center segment of the BECSP. The BECSP currently permits Medical Services within the Neighborhood Center Segment with special condition “C2” (upper floor only). Special Condition “C2” limits Medical Service to above the ground floor. Although there exist multiple commercial centers within this segment that offer upper-level commercial spaces, this requirement creates a constraint to otherwise accessible and available ground floor commercial space. Specifically, the applicant desires to establish a dental office located within Ocean Plaza, located at the southwest corner of Beach Boulevard at Warner Avenue, which is one of the highest travelled and visible intersections of the City. Medical and dental offices are desirable uses, serving a wide variety of community members, including the elderly, and young children, and those with special needs. Thus, Special Condition C2 unnecessarily limits Medical Services uses from Neighborhood Center tenancies. The request would provide commercial property owners within the Neighborhood Center Segment more flexibility and options in finding businesses to occupy ground floor commercial spaces. While the original intent of this segment of the specific plan was to feature ground-level retail, restaurant, and entertainment uses in order to create a more active pedestrian experience, traditional retail and services have diminished over the years due to the rise of e-commerce. Demand for traditional medical services, however, remains the same and is vital for a diverse and aging community. These uses are commonly found on the ground floor of most commercial properties and contribute to an active pedestrian experience. Medical offices operate similarly to retail uses in that they serve the same customers and operate within similar hours as most retail uses. 765 The proposed ZTA will expand allowable uses within the BECSP that have been excluded since the specific plan was adopted. Over the years, the City has received many inquiries and requests for medical uses in the Neighborhood Center segment. The proposed ZTA will enable property owners to fill vacant tenant spaces with an appropriate use for this segment. Lastly, the ZTA does not propose any new land uses or revise development standards. It addresses a community need for health and wellness by expanding accessibility to Medical Services to a core area of the city and these changes could facilitate the establishment of new businesses, result in new job creation, and increase sales tax revenue. Further, medical services uses, including medical and dental offices, operate in a similar manner as retail and other commercial uses, utilizing similar hours of operation. The request would impact a small number of existing properties within the Beach Edinger Corridor Specific Plan (Exhibit 1), and would result in the activation of street level commercial spaces, furthering the goals of the Specific Plan. No significant impacts to retail tenant space availability are anticipated. Exhibit 1 – Properties within Neighborhood Center Segment 766 In March 2022, the Planning Commission reviewed and recommended a similar request to allow Medical Service uses on the ground floor as an allowed use in the Town -Center – Core Segment of the BECSP. The Commission recommended approval to the City Council, who subsequently adopted the amendment in May 2022. Urban Design Guidelines Conformance: Not applicable. Environmental Status: ZTA No. 21-007 is within the scope of the BECSP Program Environmental Impact Report No. 08-008 certified by the Planning Commission on December 8, 2009. In accordance with CEQA Guidelines Sections 15162 and 15163, no subsequent EIR or supplement to the EIR need be prepared for this ZTA and no further environmental review or documentation is required. Coastal Status: Not applicable. Design Review Board: Not applicable. Other Departments Concerns and Requirements: Not applicable. Public Notification: Legal notice was published in the Huntington Beach Wave on December 1, 2022 and notices were sent to individuals and organizations requesting notification (Planning Division’s Notification Matrix). In lieu of sending notices to all property owners for all properties within the BECSP and within a 500 foot radius, a minimum 1/8 page advertisement was published instead. As of December 5, 2022 no communications regarding the request have been received. Application Processing Dates: DATE OF COMPLETE APPLICATION: MANDATORY PROCESSING DATE(S): Not applicable Legislative Action – Not applicable SUMMARY: Staff is recommending approval of ZTA No. 22-004 based on the following reasons: 1. It is consistent with general land uses, programs, goals, and policies of the General Plan. 2. It addresses a community need for health and wellness by expanding accessibility to Medical Services to a core area of the city. These changes could facilitate the establishment of new businesses, result in new job creation, and increase sales tax revenue. 767 ATTACHMENTS: 1. Suggested Findings of Approval – ZTA No. 22-004 2. Draft City Council Resolution 3. ZTA No. 22-004 Legislative Draft and Revised BECSP Sections 2.1.5 4. Narrative received and dated August 22, 2022 768 Zone Text Amendment Narrative Project Background: Dr. Jeremy Chau and Dr. Melissa Ven Dange are both newly graduated orthodontists who have leased a commercial suite at 17041 Beach Blvd in Huntington Beach. 17041 Beach Blvd is subject to zoning regulations of the BECSP. In its current form, the BECSP prohibits dental spaces on the ground floor. In response, Dr. Chau and Ven Dange are requesting to amend the BECSP to allow their orthodontic practice on the ground floor. Beach and Edinger Corridor Specific Plan: A Specific Plan is a tool for the systematic implementation of the General Plan but is not a component of a General Plan. It provides specific land use direction and development regulations for an area within the City, consistent with the General Plan and other City regulations. Often, Specific Plans are used to establish a link between implementing policies of the General Plan and individual development proposals in a defined area. Specific Plans are adopted and amended in the same manner as a General Plan, except that a Specific Plan may be adopted by resolution or by ordinance and may be amended as often as deemed necessary by the City Council. In 2010, the City of Huntington Beach approved the BECSP in efforts to enhance overall economic development, physical beauty and functionality of the Beach Boulevard and Edinger Avenue corridors. The BECSP was created with the following objectives in mind: 1. Position the city such that it would remain competitive and attractive to businesses; 2. Re-position disinvested corridor properties to capture value in the contemporary marketplace; 3. Realign development policies and planned public investments to capitalize on the current primary market trends; 4. Provide a reliable environment for investors that spell out municipal requirements in sufficient detail and that provides enhanced reliability and clarity as to character of future development; and 5. Capitalize on residents with discretionary spending potential to support restaurants, quick foods, electronics, fashion and accessories and services, thereby spinning off additional retail spending. The BECSP designates eight Corridor Centers and Segments. Land uses and development standards specific to the Town Center – Core segment are listed in Section 2.1.3 of BECSP. Ocean Plaza is a lifestyle center that offers a great variety of restaurants, goods and services. The center is conveniently located at the intersection of Beach Boulevard and Warner. A copy of the property site plan is provided as Exhibit A. 769 Amendment Requests: The BECSP currently permits Medical Services within the Town Center – Core with Special Conditions C2 (upper floor only). Special Conditions C2 limit Medical Service to the second floor. Ocean Plaza contains one general office building constructed for general office use without the proper infrastructure or parking to support a dental use. The parking and accessibility is also difficult for parents with young and special needs children. The remainder of Ocean Plaza is comprised of single-story commercial retail buildings. Thus, Special Conditions C2 have precluded Medical Services within the Town Center – Core as a whole. Since its inception, the BECSP has led to numerous developments and improvements seen throughout the Beach Boulevard and Edinger Avenue corridors including the Luce Apartment Project, The Broadway by Windsor Mixed Use Project, and Beach Promenade Shopping Center to name a few. Despite the revitalization that the corridors have experienced since the enactment of the BECSP, the COVID-19 pandemic has shown adverse effects on local retail market trends. Demand for traditional retail uses such as gift and flower shops, designer merchandise sales, and dry-cleaning service, has declined given the shift to online purchases and the work from home trend, while with the aging population, demand for health and medical services continues to gain traction. The current space in questions has been vacant for several years and the large dry-cleaning space adjacent, Zips, is now vacant as well. These are two of the most prominent spaces in Huntington Beach, but due to changing market conditions and an overabundance of restaurant and retailers these spaces have been very difficult to fill. Two prominent spaces both empty along Beach Blvd is neither attractive or productive for the community. Medical services are crucial throughout the community and being able to provide them in the “core” of Huntington Beach is pivotal for the health and wellness of all citizens in the area. Amendment of the Specific Plan’s development standards in Section 2.1.3 would remove the current requirement for medical service patrons to walk upstairs to access their services, eliminating what might be viewed as an obstacle for them. The Tenant is requesting to strike Special Conditions C2 from Medical Services as illustrated below. This change is needed to permit ground level Medical Services at Ocean Plaza. A full copy of the proposed change is provided as Exhibit B. Amendment to Section 2.2.1, 3) Office, b) Medical Services (page 29) Section 2.2.1 of BECSP defines Medical Services as “Medical workplace uses and establishments with employees with medical licenses such as those listed. Medical & dental Offices or facilities (permitted), Indoor veterinary clinics (conditionally permitted), Acupuncture, physical therapy, chiropractor (permitted), Psychiatric (permitted), Mortuary services (permitted). Per the definition stated above, all Medical Services are permitted by right. Dr. Chau and Ven Dange have completed extensive research showing this area of Huntington Beach as having a need for orthodontic and pediatric dental services. There unique vision will have a contemporary retail store front and will drive parents from around the 770 area who will stay, shop and eat while visiting their practice. The Tenant is requesting to strike the “upper floors” text from the Beach and Edinger Corridor Specific Plan. Suggested Finding for Approval: The proposed Specific Plan Amendment to amend the BECSP to permit medical services on the ground level within the Town Center – Core segment is consistent with general land uses, programs, goals and polices of the General Plan as follows: Goal LU-11. Commercial land uses provide goods and services to meet the regional and local needs. Policy LU-11(A). Encourage a variety of commercial uses that cater to local and regional demand to create an environment that meets resident needs and increases the capture of sales tax revenues. Policy LU-11(B). Encourage new businesses to locate on existing vacant or underutilized commercial properties where these properties have good locations and accessibility Goal LU-13. The city provides opportunities for new businesses and employees to ensure a high quality of life and thriving industry. Policy LU-13(A). Encourage expansion of the range of goods and services provided to accommodate the needs of all residents and the market area. The proposed Specific Plan Amendment will allow much needed medical services within Ocean Plaza, one of the City’s most conveniently located and easily accessible shopping center. This could encourage the establishment of new businesses, job creation, and increase sales tax revenues. Its scope will not affect General Plan land uses or programs. The proposed Specific Plan Amendment is compatible with the uses authorized in, and the standards prescribed for, the zoning district for which it is proposed because it does not propose any new land uses or revise development standards. 771 BECSP MEDICAL SERVICES USE RESTRICTION Zoning Text Amendment No. 22-004 City Council February 7, 2023 772 Request Zoning Text Amendment No. 22-004 Amend the Beach Edinger Corridors Specific Plan (BECSP) to allow Medical Services on the ground floor within the Neighborhood Center Segment. Neighborhood Center Segment All Medical Services uses limited to above the ground floor (Special Conditions C2) 773 Neighborhood Center Segment One of six zoning “segments” in BECSP 35 total properties developed with commercial uses Ocean Plaza Beach Promenade Newland Center Walmart Center 774 Neighborhood Center Segment Section 2.2 Building Use Regulations (3)(b) -Medical Services Uses permitted ‘by right’ Subject to Special Condition (C2) 775 Analysis BECSP intent –Neighborhood Center Segment Neighborhood serving ground floor commercial uses –retail, restaurant, personal services Offices and residential permitted on upper floors Traditional Retail Market Changed post-Covid restrictions Consistent demand for medical services Permitted ‘by right’ in all other commercial districts Do not require special consideration or operational conditions Medical Services uses are compatible with surrounding uses Similar to retail customer base and operating hours Fill underutilized commercial centers Contribute to pedestrian/community experience 776 Recommendation On January 10, 2023, the Planning Commission held a public hearing on ZTA No. 22-004 and recommended approval to the City Council based on the following: Consistent with the General Plan Addresses a community need for health and wellness by expanding access to Medical Services Consistent with other commercially zoned areas Could facilitate establishment of new businesses and job creation 777 Questions? 778 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-097 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Chris Slama, Director of Community & Library Services PREPARED BY:Ashley Wysocki, Deputy Director of Community & Library Services Subject: Approve and authorize Amendment No. 1 to the Professional Services Contract with RDG Planning & Design Art Studio for the Design, Fabrication and Installation of the Public Art Work to include a phased acceptance of liability, to increase the contract compensation by $35,000, and to appropriate $35,000 from the Public Arts in Parks Fund 236 Statement of Issue: There is a need to amend the City Council approved Professional Services Contact with RDG Planning & Design Art Studio (RDG) for the Design, Fabrication and Installation of a Public Art Work for Central Park to approve a phased acceptance of liability of the structures during the installation process of the “To See Yourself in Nature” public art piece, to increase the contract compensation by a not-to-exceed amount of $35,000, and to appropriate $35,000 of restricted funds from the Public Art in Parks Fund 236. Financial Impact: Funding in the amount of $35,000 is available in the Public Art in Parks Fund 236 fund. Recommended Action: A) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Agreement Between the City of Huntington Beach and RDG Art Studio for the Design, Fabrication and Installation of a Public Art Work for Central Park” to approve a phased acceptance of liability of the structures during the installation process and to increase the contract compensation by a not-to- exceed amount of $35,000; and, B) Authorize the appropriation of $35,000 from the Public Art in Parks Fund 236 to account 23645001.82900. Alternative Action(s): City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™779 File #:23-097 MEETING DATE:2/7/2023 Do not approve the recommended actions and direct staff accordingly. If not approved, there will be further delays in the completion of the project while staff continue to seek solutions to ensure Americans with Disabilities Act compliance. Analysis: In the fall of 2019, staff conducted an online survey to garner community feedback regarding public art in Huntington Beach. The survey results showed a significant amount of feedback expressing the desire for public art in parks, and specifically, in Huntington Central Park. At the September 21, 2020 City Council meeting, Council authorized Mayor Lyn Semeta to appoint an ad-hoc committee to assist in the procurement of an artist to develop and install an iconic public art piece in Huntington Central Park. The Huntington Central Public Art Committee (Committee) was established to help develop a scope of services for a Request for Proposals (RFP), review the proposals, and recommend to the City Council the final artist selection. The Committee was subsequently formed, comprised of two City Council members, three community members, and two staff. During the RFP submission period, eleven artists responded. The proposals were reviewed by the Committee, and the top five ranking artists were invited to participate in interviews. After interviewing all five top candidates, the Committee unanimously agreed to recommend RDG Planning & Design Art Studio (RDG) as the most qualified artist to commission the artwork for the public art project in Huntington Central Park. At the December 7, 2020 City Council meeting, City Council unanimously approved a Professional Services Contract between the City of Huntington Beach and RDG for the Design, Fabrication and Installation of a Public Art Work for Central Park, and authorized the appropriation of $300,000 from the Public Art in Parks Fund 236. As described in the RFP, the iconic public artwork will be original, community and artist generated, and will have to harmonize with and respect the integrity of the unique architecture of the Central Library and natural aesthetic of Huntington Central Park. At the July 6, 2021 City Council meeting, City Council unanimously approved the site location and design of the artwork, as recommended by the Design Review Board on June 10, 2021. The approved artwork, titled “To See Yourself in Nature,” is comprised of two 13-foot tall pillars situated in a serpentine configuration. A rendering of the art is included in the PowerPoint included as Attachment 3. The original design that was approved included a base of decomposed granite (DG) which was part of the project original cost. However, after further review, staff determined that the base surface could not be constructed with DG, and should instead be asphalt. Because of this subsequent determination, the City asked RDG to redesign the base. As a result of the change in scope, RDG estimates additional costs of $29,246 for the new design, fabrication and installation of protective metal framing around the base of the art. The City will be responsible for the application of the asphalt surface once the metal framing is installed. Staff is recommending a not-to-exceed amount of City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™780 File #:23-097 MEETING DATE:2/7/2023 $35,000 total to cover any potential contingency costs. Because the original agreement approved by City Council authorized a not-to-exceed amount of $300,000, staff is requesting approval of an amendment to the original agreement in order to complete the project. Funding in the amount of $35,000 is available in the Public Art in Parks Fund 236. This fund is comprised of 2% of residential park development fees collected from new development and is specifically restricted for the development of public art projects in parks. This restriction was included as part of the adoption of Ordinance No. 3946 in July 2012 and is included in HBMC 17.76.090.A.2 stating, “Two percent of fee collected shall be used to fund public art in City parks.” Upon approval of this amendment, RDG will begin to fabricate the metal frames necessary to encase the base of the pillars prior to installation of asphalt surfacing. While there have been some delays throughout the project due to COVID-19 related challenges, the fabrication of the two pillars is complete, as well as associated infrastructure for utilities. The contract amendment includes that the City will accept liability for any damage to the pillars as soon as installed. Any responsibility for damage caused to the pillars (including any damage caused by the installation of the asphalt base) between the time the pillars are installed and final acceptance of the project is with the City. Staff estimates the completion of installation to be in the spring of 2023. Environmental Status: The art piece is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b) (3) of the CEQA guidelines because there is no potential for the art piece to have a significant effect on the environment. Strategic Plan Goal: Community Engagement Attachment(s): 1) Amendment No. 1 to Professional Services Contract between the City of Huntington Beach and RDG Art Studio for the Design, Fabrication and Installation of a Public Art Work for Huntington Central Park 2) Professional Services Contract between the City of Huntington Beach and RDG Art Studio for the Design, Fabrication and Installation of a Public Art Work for Huntington Central Park 3) Huntington Central Park Public Art Contract Amendment PowerPoint City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802 803 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 Huntington Central Park Public Art Contract Amendment Agenda Item 23-097 February 7, 2023 821 Project Timeline Fall 2019 •Staff conducted an online community feedback survey. Results showed a significant amount of feedback expressing a desire for public art in parks, specifically in Huntington Central Park. September 7, 2020 •City Council authorized Mayor Semeta to appoint an ad-hoc Huntington Central Park Public Art Committee (Committee) to help develop a scope of services for a Request for Proposals (RFP)and recommend an artist for final selection. •The committee is comprised of two Council members, three community members and two staff. 822 Project Timeline RFP •Eleven artists responded and the top five ranking artists were invited to participate in interviews conducted by the Committee. •RDG has experience with over 80 large scale projects in the US and Canada. •The Committee unanimously agreed to recommend RDG Art Studio (RDG) to City Council. December 7, 2020 •City Council unanimously authorized the execution of a Professional Services Agreement with RDG, with a not-to -exceed limit of $300,000. •This amount was appropriated from restricted Public Arts in Parks Fund 236. 823 Project Timeline Winter 2021 •RDG conducted a virtual town hall and survey to collect feedback from residents and stakeholders about their vision for the art piece and how they use Huntington Central Park. •Stakeholders including the Secret Garden, HB Tree Society, HB Art League, Huntington Harbour Art Association, Central Park Collaborative and various Central Library groups were invited to attend and share feedback. July 6, 2021 •As recommended by the Design Review Board on June 10, 2021, City Council unanimously approved the site location and design of the artwork. •The iconic public artwork is original, community and artist driven, and harmonizes with respect to the unique architecture of the Central Library and natural aesthetic of Central Park, and is titled, “To See Yourself in Nature…”824 Location 825 “To See Yourself in Nature…” Daytime View 826 “To See Yourself in Nature…” Evening View 827 Contract Amendment •Original scope included decomposed granite (DG). Staff has determined the base surface should be asphalt. •Staff and RDG mutually agree changing the scope to asphalt will ensure appropriate accessibility require less maintenance over time. •Metal frames are necessary to encase the base of the pillars prior to asphalt installation. •After installation of the pillars, any damage caused to the pillars is responsibility of the City. 828 Funding •Funding in the amount of $35,000 is available in Public Arts in Parks Fund 236. •$29,246 for design, fabrication and installation of a protective metal frames. •$5,754 contingency •Fund 236 is comprised of 2% of residential park development fees collected from new development for funding public art in parks projects. •This restriction was included as part of the adoption of Ordinance No. 3946 in July 2012 and is included in HBMC 17.76.090.A.2. •“Two percent of fee collected shall be used to fund public art in City parks.” 829 Recommended Action •Approve and authorize the Mayor and City Clerk to execute Amendment No. 1 to the Professional Services Contract between the City of Huntington Beach and RDG Planning & Design Art Studio for the Design, Fabrication and Installation of a Public Art Work for Central Park to approve a phased acceptance of liability of the structures during the installation process and to increase the contract compensation by a not-to -exceed amount of $35,000; and, •Authorize the appropriation of $35,000 from the Public Arts in Parks Fund 236 to account 23645001.82900 830 Questions? 831 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-050 MEETING DATE:2/7/2023 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:Oscar Garcia, Captain Subject: Report on crime statistics involving Huntington Beach businesses and recommendations to enhance efforts to address and reduce business-related crimes Statement of Issue: On December 20, 2022, the City Council approved Council Member Burns’ request for a comprehensive report on crime statistics and specifically, how to address shoplifting, vandalism, and other crimes against businesses. The information requested is presented tonight for City Council’s consideration and includes a recommended action for additional funding towards an enhanced Enforcement Plan. Financial Impact: The Police Department’s proposed plan requests approval in Fiscal Year 2022/23 for additional overtime in the amount of $30,000 and funding for the installation of five public safety cameras at a cost of $50,000. Future fiscal year funding to sustain these efforts will be submitted through the annual budget process. Recommended Action: A) Receive and file this report; and B) Approve the proposed enforcement plan for Fiscal Year 2022/23 for additional overtime for proactive patrols and funding for five (5) public safety cameras, including appropriation from the General Fund to the Police Department’s FY 2022-2023 Personnel and Operating Budget. Alternative Action(s): Do not approve the proposed Enforcement Plan and/or receive and file this report. Direct staff accordingly. Analysis: City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™832 File #:23-050 MEETING DATE:2/7/2023 Council Member Burns’ request for a comprehensive report on theft and impact on businesses includes: 1. A full report and accounting identifying all of the City's resources, including recently hired/appointed City personnel, and technology needed 2. An analysis on statistics on theft and businesses This report addresses Items 1-2 above for Council consideration. Furthermore, Police Chief Parra will present statistics on a quarterly basis starting June 2023. Background The City has been affected by an increase in thefts, both in businesses and residences. In analyzing the statistics, directed enforcement and the use of technology is necessary for crime prevention and the apprehension of suspects. HBPD has divided the City into four quadrants, referred to as area commands. Each area command is managed by one patrol lieutenant, who is responsible for addressing issues affecting their area. Statistics are utilized to address potential issues in an effort to prevent crime. In 2022, there were a total of 669 shoplifting incidents, of which 31% involved an arrest. There were a total of 106 robberies, 37 of them being considered an Estes robbery. Of those Estes robberies, an arrest was made in 49% of them. Regarding vandalism, there were a total of 1,134 vandalisms, of which 363 involved a business as the victim. Of all vandalisms involving a business, an arrest was made in 24% of the cases. The statistics indicate over 50% of the suspects committing these crimes are not identified or are considered unknown. Utilizing technology and proactive coordinated operations, we aim to reduce the amount of crime and/or increase the apprehension of suspects. Police Department: Proposed Enforcement Plan Huntington Beach Police Department’s (HBPD) proposed Enforcement Plan includes a combination of technology and directed enforcement: • Adding 25 additional public safety cameras (collaborating with IT Department), at a rate of five per year • Proactive Patrol coordinated by Area Commanders • Coordinate with Special Investigations Bureau (SIB) to conduct operations targeting these crimes This plan will increase proactive enforcement and apprehension of suspects. Furthermore, this plan will require additional staffing and equipment to be effective. A summary of those items and costs is below: City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™833 File #:23-050 MEETING DATE:2/7/2023 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: Financial Sustainability, Public Safety or Other Attachment(s): 1. PowerPoint presentation City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™834 835 836 837 838 Total 1134 Vandalisms839 840 841 Quantity FY 22/23NotesPublic SafetyCameras5 cameras $50,000 Goal will be to install a total of 25 camerasover five yearsDesignatedEnforcement(overtime)40 OThours for Area Commands$30,0001 Lieutenant, 1 Sergeant,4 Officers. 842 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-066 MEETING DATE:2/7/2023 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, Executive Assistant Subject: Approve for Introduction Ordinance No. 4275 to Amend to Huntington Beach Municipal Code Chapter 13.08.070 Relating to Dogs and Other Animals Statement of Issue: Huntington Beach Municipal Code (HBMC) Chapter 13.08.070 currently prohibits all animals from entering the Pier or Beach Area bounded by the Beach Service Road and the Pacific Ocean. There is an exception for guide dogs, signal dogs, or service dogs; there is also an exception that allows dogs to enter the beach area commonly known as “Dog Beach,” which extends from 22nd Street to Seapoint Avenue. As written, the current code does not provide an exemption for Huntington Beach Police Department (HBPD) horses, which are regularly used to enhance public safety during special events and other times as authorized by the Chief of Police. It also does not provide the ability for an exemption for a special/specific event to include the use of any animals. With an exemption, and regulated by a specific event permit, such future events could permit dog shows, circus events, horse rides, carnivals, or other events to enhance tourism and bring additional attention to Huntington Beach, leading to increased revenue for the City. Financial Impact: There is no direct fiscal impact to approve Ordinance No. 4275. However, there is potential for increased revenue, through fees and tourism, with the permitting of additional specific events where animals are authorized. Recommended Action: Approve for introduction Ordinance No. 4275, “An Ordinance of the City of Huntington Beach Amending Chapter 13.08 of the Huntington Beach Municipal Code Relating to Dogs and Other Animals.” Alternative Action(s): City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™843 File #:23-066 MEETING DATE:2/7/2023 Do not approve, and direct staff accordingly. Analysis: The amended language updates Chapter 13.08 of the Municipal Code to allow the Police Department’s use of their service animals upon the Pier and Adjacent Beach Areas. It also allows a specific event permits to be issued to expressly permitted animals on the Pier and Adjacent Beach Areas, subject to restrictions contained in the specific event permit. 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. Ordinance No. 4275 2. Current HBMC 13.08.070 City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™844 845 846 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-071 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Grace Yoon-Taylor, Principal Administrative Analyst Subject: Approve for Introduction Ordinance No. 4280 Amending Chapter 2.109 of the Huntington Beach Municipal Code Regarding the Finance Commission Statement of Issue: At the January 17, 2023 Council meeting, City Council directed staff to return with an Ordinance amending Chapter 2.109 of the Huntington Beach Municipal Code (HBMC) regarding the Finance Commission. Financial Impact: There is no immediate fiscal impact at this time. However, approval of the Ordinance may potentially require additional staff time, consultant fees, and services to support the Finance Commission’s expanded scope of work, which is to be determined. Recommended Action: Approve for introduction Ordinance No. 4280, “An Ordinance of the City of Huntington Beach Amending Chapter 2.109 to the Huntington Beach Municipal Code Regarding Finance Commission.” Alternative Action(s): Do not approve for introduction Ordinance No. 4280 amending Chapter 2.109 of the HBMC related to the Finance Commission, and direct staff accordingly. Analysis: As part of the 2021 City Council Strategic Plan, the entire system of the City’s Boards, Commissions, and Committees (BCCs) was reviewed and streamlined by reformatting, consolidating and/or dissolving a select number of BCCs. In the BCC re-organization process, the City’s Finance Commission was restructured to be aligned with the Finance Department’s fiscal year milestones, which include mid-year and annual budget City of Huntington Beach Printed on 2/1/2023Page 1 of 2 powered by Legistar™847 File #:23-071 MEETING DATE:2/7/2023 reviews. The meeting frequency of the Commission was also reduced from monthly to bi-monthly (six times per year) and as needed at the request of the City Council or by Finance Commission request with the approval of the City Council. Per the City Council’s direction at the January 17, 2023 Council meeting, staff has prepared Ordinance No. 4280 (Attachment 1) to amend HBMC Chapter 2.109 and modify the Finance Commission’s duties, meeting frequency, and other adjustments, for Council’s consideration. With this amendment, the Finance Commission will meet regularly on a monthly basis and its duties will expand to its original scope of work related to the City’s financial planning. Additionally, per the City Council’s direction, the Finance Commission will also meet at the Council Chamber, similar to the Planning Commission and Community & Library Services Commission. 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: Non Applicable - Administrative Item Attachment(s): 1. Ordinance No. 4280 and Legislative Draft City of Huntington Beach Printed on 2/1/2023Page 2 of 2 powered by Legistar™848 849 850 851 852 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-072 MEETING DATE:2/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Grace Yoon-Taylor, Principal Administrative Analyst Subject: Approve the Introduction of Ordinance Nos. 4279 and 4278 Amending Chapter 2.64 and Chapter 2.111 of the Huntington Beach Municipal Code Regarding the Community and Library Services Commission and the Citizen Infrastructure Advisory Board/Public Works Commission, respectively Statement of Issue: At the January 17, 2023 Council meeting, City Council directed staff to return with necessary measures to ensure that all individually appointed Boards, Commissions, and Committees (BCCs) have up to 7 members, with no more than one appointee per Councilmember. This action would apply to the Community and Library Services Commission (which has a total of 9 members), and the Citizen Infrastructure Advisory Board/Public Works Commission (which had a total of 8 members but is currently at 7 following a recent resignation). Each of these Commissions was a consolidation of multiple BCCs, which took place during a major BCC restructuring effort in 2021. As such, it led to a temporary increase in membership; those identified, additional members would exit the Commission following the end of their terms, at which point the roster for each Commission would return to 7 members. Tonight’s recommended action would hasten that process and formalize it in the Municipal Code. Financial Impact: There is no direct fiscal impact. Recommended Action: A) Approve for Introduction Ordinance No.4279, “An Ordinance of the City of Huntington Beach Amending Chapter 2.64.040 to the Huntington Beach Municipal Code Regarding Community and Library Services Commission”; and/or City of Huntington Beach Printed on 2/1/2023Page 1 of 3 powered by Legistar™853 File #:23-072 MEETING DATE:2/7/2023 B) Approve for Introduction Ordinance No. 4278, “An Ordinance of the City of Huntington Beach Amending Chapter 2.111 to the Huntington Beach Municipal Code Regarding Citizen Infrastructure Advisory Board/Public Works Commission.” Alternative Action(s): Do not approve for Introduction Ordinance No.4279 and No. 4278 amending Chapter 2.64 and Chapter 2.111 of the Huntington Beach Municipal Code (HBMC). The Community and Library Services Commission will function as what current HBMC states and continue having 9 members until the terms of two former Library Board members permanently expire. Analysis: As part of the 2021 City Council Strategic Plan, the entire system of the City’s Boards, Commissions, and Committees (BCCs) was reviewed and streamlined by reformatting, consolidating and/or dissolving a select number of BCCs. In the BCC re-organization process, the City’s Community Services Commission and the Library Board of Trustees were consolidated into one - Community and Library Services Commission. This also reflected the reorganization of the Community and Library Services Department as one department. It allowed all existing members of the Library Board in good standing to continue to serve in their current terms until they sunset. This resulted in current membership of 9, instead of 7 direct appointees by individual City Council members. The Citizen Infrastructure Advisory Board, Public Works Commission, and the Beautification, Landscape, and Trees (BLT) Committee were consolidated into one citizen-led body, CIAB/Public Works Commission, to incorporate the scope of work for all three bodies and streamline any duplicating efforts. With recent resignation of the former CIAB member, the CIAB/Public Works Commission has now 7 members, appointed by each Councilmember. However, this ordinance allows us to clean up and simplify the Municipal Code accordingly. Per the City Council’s direction at the January 17, 2023 Council meeting, City staff worked with City Attorney’s Office and prepared the Ordinance No. 4279 (Attachment 1) and the Ordinance No. 4278 (Attachment 2) to amend the HBMC Chapter 2.64 and Chapter 2.111. With this amendment, the Community and Library Services Commission will solely consist of seven members individually appointed by City Council, whose term coincides with the term of the Councilmember making the appointment. 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: Non Applicable - Administrative Item Attachment(s): City of Huntington Beach Printed on 2/1/2023Page 2 of 3 powered by Legistar™854 File #:23-072 MEETING DATE:2/7/2023 1. Ordinance No. 4279 and Legislative Draft 2. Ordinance No. 4278 and Legislative Draft City of Huntington Beach Printed on 2/1/2023Page 3 of 3 powered by Legistar™855 856 857 858 859 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-109 MEETING DATE:2/7/2023 Subject: Submitted by Councilmember Burns - Request to prepare an Ordinance that limits Flag Displays at City Facilities to only the American, POW/MIA, State, City, and as needed, the County Flags Recommended Action: Direct the City Manager to work with the City Attorney to prepare an ordinance for introduction at the February 21 Council Meeting that the City only fly or display on City property the American flag, the POW/MIA flag, the State of California flag, the Huntington Beach City flag, and, as needed, the County of Orange flag. If the ordinance is adopted, direct the City Manager to update Administrative Regulation (AR) 705: Citywide Flag Policy, accordingly. Attachment(s): 1. Memo City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™860 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: PAT BURNS, CITY COUNCIL MEMBER DATE: FEBRUARY 7, 2023 SUBJECT: REQUEST TO PREPARE AN ORDINANCE THAT LIMITS FLAG DISPLAYS AT CITY FACILITIES TO ONLY THE AMERICAN, POW/MIA, STATE, CITY, AND, AS NEEDED, THE COUNTY FLAGS The City of Huntington Beach has always flown 3-5 flags at City facilities - the American, POW/MIA, State of California, and Huntington Beach City flags. It has occasionally displayed the County of Orange flag. That was it. We, the City of Huntington Beach, are one community with many different cultures and people. All are equally valued members of our community, and none are to be treated differently or discriminated against. As a municipal organization, the City of Huntington Beach should avoid actions that could easily or mistakenly be perceived as divisive. In keeping with the proper role of municipal government and in the spirit of true unity, the City of Huntington Beach should only fly or display on City-owned property the American, POW/MIA, State of California, and the Huntington Beach City flags. The City should also display the County of Orange flag when the need or occasion requires it. RECOMMENDED ACTION Direct the City Manager to work with the City Attorney to prepare an ordinance for introduction at the February 21 Council Meeting that the City only fly or display on City property the American flag, the POW/MIA flag, the State of California flag, the Huntington Beach City flag, and, as needed, the County of Orange flag. If the ordinance is adopted, direct the City Manager to update Administrative Regulation (AR) 705: Citywide Flag Policy, accordingly. 861 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-118 MEETING DATE:2/7/2023 Subject: Submitted by Councilmember Burns - SB 9 and SB 10 Impacts on Huntington Beach Recommended Action: Request that staff compose, for City Council review, an analysis of SB 9 and SB 10, their impacts in Huntington Beach, and process to exempt the City from SB 9, as the City has opted out of SB10. Direct the City Attorney to take any legal action necessary to challenge SB 9 and SB 10. Attachment(s): 1. Memo City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™862 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: PAT BURNS, CITY COUNCIL MEMBER DATE: FEBRUARY 7, 2023 SUBJECT: SB 9 AND SB 10 IMPACTS TO HUNTINGTON BEACH The State's housing laws have become onerous and burdensome to cities, including fully developed cities like Huntington Beach. In 2021, the State passed SB 9‐ The California HOME Act, which allows for lot splits on residential properties for up to four homes on a single‐family parcel, and SB 10 which allows cities to codify by ordinance, or “enroll”, for higher zoning; however the City did not enroll in SB 10. SB 9 and SB 10 are intended to increase housing in single‐family neighborhoods. However, SB 9 and SB 10 undercut local zoning authority (including Charter Cities like Huntington Beach) by overriding zoning and incentivizing property owners to redevelop single family residences into multiplex, apartment‐like developments (including for affordable housing). Radical redevelopment in established, residential neighborhoods is not only a threat to quality of life and lifestyle, but to the value of the adjacent and neighboring properties. The City has a duty to protect the quality and lifestyle of the neighborhoods that current owners have already bought into. The City should not be put in a position that would allow the diminution of an owner's property value without just compensation, and Huntington Beach should be able to uphold its Charter City zoning rights. RECOMMENDED ACTION Request that staff compose, for City Council review, an analysis of SB 9 and SB 10, their impacts in Huntington Beach, and process to exempt the City from SB9, as the City has opted out of SB 10. Report to City Council within 45 days. Direct the City Attorney to take any legal action necessary to challenge SB 9 and SB 10. 863 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-119 MEETING DATE:2/7/2023 Subject: Submitted by Councilmember Moser - Request to Reinstate Remote Citizen Participation at Public Meetings Recommended Action: I would like to request the City Council to reinstate the remote public participation option during meetings of the City Council and all BCCs, in the spirit of increasing public access, civic discourse, and transparency. If needed, the City Council could reassess the need for remote options periodically, moving forward. Attachment: 1. Memo City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™864 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: NATALIE MOSER, CITY COUNCIL MEMBER DATE: FEBRUARY 7, 2023 SUBJECT: REQUEST TO REINSTATE REMOTE CITIZEN PARTICIPATION AT PUBLIC MEETINGS Huntington Beach is a dynamic community represented by many groups including seniors, individuals with mobility issues, students, young adults, families, business owners, and more. However, not all individuals receive or provide input to the City in the same ways. Some engage with the City using online tools such as our website, the MyHB app, and Zoom, while others use more traditional means such as cable TV, mailings, and phone calls. Over the last few years, the City has doubled down on expanding its communication tools to increase transparency, participation, and communication. This has allowed greater access for residents to receive information and share input, as well as for elected representatives and staff to hear from a wider range of community members, which is critical to making an informed decision at a public meeting. However, the recent decision to remove remote public participation (via Zoom) at meetings of the City Council and Boards, Commissions and Committees (BCC) limits the ability of some residents to engage with us. We all have experienced days where an unexpected illness, traffic jam, childcare issue, or work has gotten in the way of well‐laid plans to attend scheduled events like a Council meeting. Yet the remote option has provided flexibility for those individuals to provide public comment, when they otherwise could not. This particularly applies to individuals with limited mobility, who might never have previously been able to fully engage with the City until we offered this remote public participation option. This flexibility is important for our large and dynamic community. Remote public participation at City meetings is a low‐cost solution that invites a wider range of residents into the Chambers, albeit virtually. Without this option, the input we receive, particularly before a major Council decision is made, would be limited. At this time, several major Orange County cities still offer online public participation including Santa Ana, Irvine, Fullerton and Costa Mesa. It would be beneficial for Huntington Beach, as the fourth largest city in Orange County, to provide the same option to our residents. RECOMMENDED ACTIONS I would like to request the City Council to reinstate the remote public participation option during meetings of the City Council and all BCCs, in the spirit of increasing public access, civic discourse, and transparency. If needed, the City Council could reassess the need for remote options periodically, moving forward. 865 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-120 MEETING DATE:2/7/2023 Subject: Submitted by Councilmember McKeon - Request to review Group Home Regulations in the City and recommend amendments and improvements as needed Recommended Action: Direct the City Manager to work with the City Attorney to return to Council with any recommendations regarding: 1. Possible new ZTA to provide additional protections for disabled occupants requiring at least 9 months’ notice prior to eviction (even after insurance coverage runs out). This kind of a protection for disabled occupants will help prevent their sudden turning out onto the street without a home or place to stay. These protections could also include requiring operators and landlords to relocate the patients/clients back to their original place of origin. 2. Begin investigating complaints of insurance fraud. This may require the City Attorney work with the District Attorney to identify prosecutorial paths for prosecution. 3. Provide City Council a Quarterly basis to give status reports on: list of current complaints regarding illicit Group Home operations harming the disabled, including Group Home locations, nature of complaints, description of complaints, complaints regarding public nuisance activities like loud noise or trash, whether issues are Code Enforcement or whether there is criminal activity; Group Home locations should identify State licensed facilities, sober homes, non-licensed providers, etc. and what efforts have been done that quarter to address the complaints. A full status report. 4. Recommendation on what resources, or assistance, does Code Enforcement need from City Council to step up enforcement, reduce response times, effectively identify problem homes, effectively address the problems of the homes, etc. Attachment(s): 1. Memo City of Huntington Beach Printed on 2/1/2023Page 1 of 1 powered by Legistar™866 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CASEY MCKEON, CITY COUNCIL MEMBER DATE: FEBRUARY 7, 2023 SUBJECT: REQUEST TO REVIEW GROUP HOME REGULATIONS IN THE CITY AND RECOMMEND AMENDMENTS AND IMPROVEMENTS AS NEEDED The City of Huntington Beach adopted a Zoning Text Amendment (ZTA) regulating the operation of certain group homes in the City. The ZTA was enacted in part to ensure that group home occupants are not discriminated against and that our neighborhoods remain safe. The laws regarding group homes and the City's ability to regulate them are evolving. Recently a Ninth Circuit Court of Appeal ruling came out holding a particular aspect of Costa Mesa's regulatory scheme invalid; although it is unclear what, if any, impact that ruling has on Huntington Beach's regulatory scheme, I believe we need to revisit this issue. To that end, I would ask the City Attorney to advise as necessary, on what, if any, updates need to be made to the City's regulations in light of evolving law on this. In addition, while the City's ZTA has had some positive affect, more can be done to protect group home occupants with disabilities, as well as our neighborhoods. In spite of the City's efforts, I am informed that deaths have occurred in certain group homes, and occupants of the group homes may be subjected to violence and abuse (both physical and mental) by operators or owners. In addition, neighbors have reported excessive noise, late night disturbances, stockpiling of trash, and various public nuisances occurring in or around certain group homes. The City is also aware, through complaints, that some of these group home operators are bringing occupants in from areas outside the City, County and State, and as soon as the insurance coverage runs out, the operators are turning the occupants out, at times leaving them homeless. Lastly, the City has also received information that some operators may be engaged in illicit insurance billing practices. All of this has to end in order to protect both occupants and neighborhoods. RECOMMENDED ACTION Direct the City Manager to work with the City Attorney to return to Council with any recommendations regarding: 1. Possible new ZTA to provide additional protections for disabled occupants requiring at least 9 months’ notice prior to eviction (even after insurance coverage runs out). This 867 kind of a protection for disabled occupants will help prevent their sudden turning out onto the street without a home or place to stay. These protections could also include requiring operators and landlords to relocate the patients/clients back to their original place of origin. 2. Begin investigating complaints of insurance fraud. This may require the City Attorney work with the District Attorney to identify prosecutorial paths for prosecution. 3. Provide City Council a Quarterly basis to give status reports on: list of current complaints regarding illicit Group Home operations harming the disabled, including Group Home locations, nature of complaints, description of complaints, complaints regarding public nuisance activities like loud noise or trash, whether issues are Code Enforcement or whether there is criminal activity; Group Home locations should identify State licensed facilities, sober homes, non‐licensed providers, etc. and what efforts have been done that quarter to address the complaints. A full status report. 4. Recommendation on what resources, or assistance, does Code Enforcement need from City Council to step up enforcement, reduce response times, effectively identify problem homes, effectively address the problems of the homes, etc. 868 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-123 MEETING DATE:2/7/2023 Subject: Submitted by Councilmember McKeon - Request to Commence a Development Impact Fund (DIF) Study Recommended Action: Direct the City Manager to work with the Finance and Community Development Departments to conduct a Request for Proposals/Qualifications process to hire a firm that will commence a DIF study and Nexus Report or other appropriate calculations. Attachment: 1. Memo City of Huntington Beach Printed on 2/2/2023Page 1 of 1 powered by Legistar™869 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CASEY MCKEON, CITY COUNCIL MEMBER DATE: FEBRUARY 7, 2023 SUBJECT: REQUEST TO COMMENCE A DEVELOPMENT IMPACT FUND STUDY The City continues to experience private development of remaining vacant parcels and on‐going redevelopment of existing homes and businesses, some of which is mandated by the State. This continuous development and re‐development results in increased demand and impacts to the City’s Levels of Service (LOS) that must be absorbed (and accommodated) by the City's infrastructure and staff. Currently developers are required to pay certain City Development Impact Fees (DIFs) when proceeding with a development project in the City. DIFs, (also known as mitigation fees or impact fees) can be charged by cities to developers to defray all or a portion of the cost of impact to LOS on public facilities related to development of a project. Impact fees generally support a wide range of community benefits like public safety infrastructure, transportation infrastructure, environmental mitigation, libraries, and parks. Essentially, DIFs act as returns to the City for impacts/costs sustained by the City because of a proposed development. The City’s last comprehensive Development Impact Fee and Nexus Report was done in 2011. As such, the City should contract with a firm to review the 2011 Report, in order to determine if the City’s DIFs sufficiently cover its LOS and recommend any appropriate changes or modifications. Much like my initiative brought in January 2023, wherein Council was asked to direct the City Manager to have the City's building standards reviewed because of the high demands from the State recently to increase housing, this review will shed light on costs to the City’s LOS of development since 2011. RECOMMENDED ACTION Direct the City Manager to work with the Finance and Community Development Departments to conduct a Request for Proposals/Qualifications process to hire a firm that will commence a DIF study and Nexus Report or other appropriate calculations. 870