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2023-06-26 Adjourned Regular Agenda Packet
IN-PERSON PUBLIC PARTICIPATION: 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 , https://bit.ly/SurfCityTV, or the City's YouTube Channel at https://www.youtube.com/cityofhb , 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 in the City Council Chambers by completing a Request to Speak form delivered to the City Clerk. SUPPLEMENTAL COMMUNICATION: 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 to the Council via email at SupplementalComm@Surfcity-hb.org . Supplemental Communications are public record, and if received by 9:00 AM 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 after the 9:00 AM deadline will be incorporated into the administrative record. Members of the public are also wlecome to communicate with the City Council (and staff supporting Council) at City.Council@surfcity-hb.org . 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 Monday, June 26, 2023 Adjourned Regular Meeting - 5:00 PM Council Chambers 2000 Main Street Huntington Beach, CA 92648MAYOR AND CITY COUNCIL TONY STRICKLAND, Mayor GRACEY VAN DER MARK, Mayor Pro Tem RHONDA BOLTON, Councilmember PAT BURNS, Councilmember DAN KALMICK, Councilmember CASEY McKEON, Councilmember NATALIE MOSER, Councilmember STAFF AL ZELINKA, City Manager MICHAEL E. GATES, City Attorney ROBIN ESTANISLAU, City Clerk ALISA BACKSTROM, City Treasurer 1 AGENDA June 26, 2023City Council/Public Financing Authority 5:00 PM - COUNCIL CHAMBERS CALL TO ORDER - ADJOURNED REGULAR MEETING 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 PERTAINING TO CLOSED SESSION ITEM (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEM (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 23-5671.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Clayton-Tarvin (Gina) v. City of Huntington Beach, et al.; OCSC Case No.: 30-2023-01329927. 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY ADJOURNED REGULAR MEETING ROLL CALL Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns Page 1 of 6 2 AGENDA June 26, 2023City Council/Public Financing Authority PLEDGE OF ALLEGIANCE 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. CONSENT CALENDAR Page 2 of 6 3 AGENDA June 26, 2023City Council/Public Financing Authority 23-5702.Adopt Resolution No. 2023-33 appointing Mark D. Alvarado as Interim Chief Financial Officer and approving the Employment Agreement A) Adopt Resolution No. 2023-33, “A Resolution of the City Council of the City of Huntington Beach appointing Mark D. Alvarado as Interim Chief Financial Officer”; and B) Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Mark D. Alvarado.” 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 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. 23-5663.Continued from June 20, 2023 with Public Hearing open - Request to Consider Adopting Resolution No. 2023-24 to Adopt a Budget for the City for Fiscal Year 2023/2024 and Authorize the Corresponding Appropriation and Transfer of $4.9 Million of AES Reserves and $3.9 Million of Equipment Replacement Reserves and Return to a 12-year Paving Cycle; Resolution No. 2023-25 Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024; Resolution No. 2023-23 Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits; Resolution No. 2023-27 Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager; Resolution No. 2023-28 to Adopt a Revised General Fund Reserve Policy; Resolution No. 2023-26 Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Page 3 of 6 4 AGENDA June 26, 2023City Council/Public Financing Authority Sections 13146.2 and 13146.3 of the California Health and Safety Code; Approve and Authorize the execution of Amendment No. 2 to the Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program; Approve and Authorize the Execution of Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services; Approve and Authorize the Execution of Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates for Sales and Use Tax Allocation and Audit Services; Approve the Budget Balancing Plan to Proactively Address the Fiscal Year 2024/25 Projected General Fund Deficit; and, Approve Modifications to the Frequency of Select Boards and Commissions (“BCCs”) and Direct Staff to Update Municipal Code Section 2.100, “Operating Policy for Boards and Commissions” to Formalize a Process for BCC-directed Assignments Exceeding Four (4) Hours of Staff Time. A) Adopt Resolution No. 2023-24, “A Resolution of the City Council of the City of Huntington Beach Adopting a Budget for the City for Fiscal Year 2023/2024” (Attachment 2); and, B) Authorize the Professional Services included in the FY 2023/24 budget to be representative of the services projected to be utilized by departments in FY 2023/24 (Attachment 3); and, C) Authorize the appropriation and transfer of the full balance ($4.9 million) of the AES Reserve from the General Fund to the AES Mitigation Fund 1284; and, D) Authorize the appropriation and transfer of $3,903,803 from the General Fund Equipment Replacement Reserve to the Equipment Replacement Fund 324; and, E) Approve the return to a 12 year paving cycle; and, F) Adopt Resolution No. 2023-25, “A Resolution of the City Council of the City of Huntington Beach Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024” of $1,171,687,773” (Attachment 4); and, G) Adopt Resolution No. 2023-23, “A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits” (Attachment 5); and, Recommended Action: Page 4 of 6 5 AGENDA June 26, 2023City Council/Public Financing Authority H) Adopt Resolution No. 2023-27, “A Resolution of the City Council of the City of Huntington Beach Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager” (Attachment 6); and, I) Adopt Resolution No. 2023-28, “A Resolution of the City Council of the City of Huntington Beach Adopting a Revised General Fund Reserve Policy” (Attachment 7) and authorize the City Manager or designee to execute all administrative and budgetary actions necessary to consolidate certain General Fund Assigned Fund Balances to the Economic Uncertainties Reserve in order to meet the City’s two-month Emergency Reserve requirement; and, J) Adopt Resolution No. 2023-26, “A Resolution of the City Council of the City of Huntington Beach, California Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code” (Attachment 8); and, K) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program” (Attachment 9); and, L) Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services” (Attachment 10); and, M) Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates for Sales and Use Tax Allocation and Audit Services” (Attachment 11); and, N) Approve the Budget Balancing Plan to proactively address the Fiscal Year 2024/25 Projected General Fund Deficit; (Attachment 12); and, O) Approve modifications to the frequency of select Boards and Commissions (“BCCs”) and direct staff to update Municipal Code Section 2.100, “Operating Policy for Boards and Commissions,” to formalize a process for BCC-directed assignments exceeding four (4) hours of staff time. ADMINISTRATIVE ITEMS Page 5 of 6 6 AGENDA June 26, 2023City Council/Public Financing Authority 23-5684.Adopt Resolution No. 2023-32 Approving and Implementing the Memorandum of Understanding (MOU) between the Huntington Beach Police Management Association (PMA) and the City of Huntington Beach for July 1, 2023 through June 30, 2026 A) Adopt Resolution NO. 2023-32, “A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Police Management Association (PMA) and the City for July 1, 2023 through June 30, 2026;” and, B) Authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2023-32 . Recommended Action: ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, July 18, 2023, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. The regular meeting of July 5, 2023, has been cancelled due to a lack of quorum. 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 6 of 6 7 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-567 MEETING DATE:6/26/2023 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Clayton-Tarvin (Gina) v. City of Huntington Beach, et al.; OCSC Case No.: 30-2023-01329927. City of Huntington Beach Printed on 6/23/2023Page 1 of 1 powered by Legistar™8 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-570 MEETING DATE:6/26/2023 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. 2023-33 appointing Mark D. Alvarado as Interim Chief Financial Officer and approving the Employment Agreement Statement of Issue: The City is in the process of conducting a recruitment to fill the Chief Financial Officer vacancy created by the resignation of the former Chief Financial Officer on January 12, 2023. The City Manager recommends the City Council appoint Mark D. Alvarado as Interim Chief Financial Officer until the recruitment process for a permanent Director concludes. Financial Impact: No additional funding is requested. Funding is included in the FY 2023-2024 budget. Recommended Action: A) Adopt Resolution No. 2023-33, “A Resolution of the City Council of the City of Huntington Beach appointing Mark D. Alvarado as Interim Chief Financial Officer”; and B) Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Mark D. Alvarado.” Alternative Action(s): Do not approve the Recommended Action, and direct staff to present an alternative solution. Analysis: The City is conducting a recruitment to fill the position of Chief Financial Officer. To maintain the integrity of the City’s services and to provide executive support to the Finance Department, it is recommended that the City Council approve the appointment of Mark D. Alvarado to serve as the Interim Chief Financial Officer through the conclusion of the recruitment process. The adoption of Resolution 2023-33 and the execution of Mark D. Alvarado’s employment agreement is required by CalPERS for employment of retired annuitants at the Department Head/Executive level pursuant to City of Huntington Beach Printed on 6/23/2023Page 1 of 2 powered by Legistar™9 File #:23-570 MEETING DATE:6/26/2023 Government Code Section 21221(h). Alvarado has over 30 years of experience in Public Finance including employment as the Director/Assistant City Manager level for a public agency and financial consultation for several other Southern California public agencies. The recruitment to fill the position is anticipated to be filled by December of this year. The hourly compensation for the position of Chief Financial Officer is the Non-Associated Range NA 0269, at $108.03 per hour with no City-provided benefits. The interim appointment of Mark D. Alvarado 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. 2023-33 2. Mark D. Alvarado Employment Agreement 3. Mark D. Alvarado Resume City of Huntington Beach Printed on 6/23/2023Page 2 of 2 powered by Legistar™10 11 12 13 14 15 16 Mark D. Alvarado, CPA EDUCATION University of Southern California Los Angeles, CA Bachelor of Science in Accounting, 1983 Certified Public Accountant, 1988 State of California License EXPERIENCE GOVERNMENTAL FINANCIAL CONSULTANT 2017 to Present Assist governmental entities with many finance department responsibilities. Services include creating and or overseeing the citywide budget process, the creation of capital improvement budgets, budget projections, budget and accounting review, year-end closing and audit preparation, debt financing including pension obligation bonds, pension cost analysis, organizational review of the finance department, General Fund long term forecasting, financial sustainability plans that include long term pension costs, fee and charge review and implementation, financial policy review and update, OPEB trust set up, and retiree medical plan alternatives. Clients include: City of Irvine City of Ontario City of La Verne City of El Monte City of Monrovia City of San Gabriel City of Santa Ana Orange County Fair Association City of Huntington Beach CITY OF MONROVIA 1992 to 2016 Administrative Services Director/Assistant City Manager – 2009 to 2016 In conjunction with the City Manager, provided direct oversight and supervision of operational and/or functional areas of all City departments. 17 Mark D. Alvarado, CPA 2 This included reviews of all budgets with department heads, making recommendations related to their content, financing, and implementation strategies with the City Manager. Responsible for the overall financial strategy of labor negotiations with the City’s employee associations. Directed the Human Resources Manager to negotiate certain employee benefits and created the policy to have all employees pay a portion of pension costs. Gave direction to the Human Resources Manager on employee disciplinary actions. Assisted and participated in the selection, evaluation, development and termination of City employees, and assisted in the execution of disciplinary action. Also worked with each department head to review staffing levels and make recommendations to the City Manager on any new staffing. Worked with the Economic Development staff to maintain the Successor Agency properties, including gathering information for land use decisions, marketing available properties for sale, and worked with the State Department of Finance to let us keep our economic vision for land use. Served as Interim City Manager for four months in 2012. In that time represented the Redevelopment Agency in mediation regarding a lawsuit over the sale/condemnation of certain property, saving the Agency $4 million. Also oversaw the dissolution of redevelopment agencies by the State, beginning the process of creating our Oversight Board and eliminating the seven funded positions. In conjunction with the Human Resources/Risk Management Manager, oversee all litigation claims against the City, including investigations, discussions with legal counsel, and any proposed settlement scenarios. Administrative Services Director – 1996 to 2009 Full responsibility for all financial activities associated with general accounting, payroll, accounts payable, accounts receivable, utility billing, purchasing, and budgeting. Responsible for managing the City’s overall estimated $60 million annual budget, including the former Redevelopment Agency and the current Successor Agency. Presented to Council a balanced budget for 20 consecutive years. In 2009 coordinated with the City Manager a plan to reduce the City budget over $2 million due to the 18 Mark D. Alvarado, CPA 3 economic downturn. Over three years, reduced staffing 20% and increased employee pension contributions. Oversaw the financing and debt repayment of the City’s $33 million bonded debt, along with the Successor Agency’s $63 million in bonded debt. Completed refinancing’s of all the Agency’s debt over the last 10 years. Managed the City’s overall investment portfolio, ranging from $30 million to $40 million. Oversaw the financial audit conducted by an outside CPA firm. Our audited financial statements received an excellence in financial reporting award for 20 consecutive years. Before this, spent four years as the Assistant Finance Director, from 1992 to 1996. VICENTI, LLOYD & STUZMAN, CPA’s La Verne, CA 1989 to 1992 Audit Supervisor Responsible for planning and coordinating 300-700 hour audit engagements of local educational agencies and other governmental agencies. Duties entailed assisting in year-end closing of the financial records, developing budgets and forecasts, review of financial records, and the review of internal control policies and procedures. BAKER & ROBERTS, CPA’s El Monte, CA 1986 to 1989 Audit Supervisor Responsible for performing detailed examinations of the financial records for governmental agencies. The financial records include the General Fund, all Special Revenue, Capital Project, Proprietary, Fiduciary, and Debt Service Funds. 19 Mark D. Alvarado, CPA 4 BEVERLY ENTERPRISES Pasadena, CA 1984 to 1985 Tax Accountant Preparation of $1 billion+ federal consolidated and 195 state and local income tax returns covering 47 states for health care company. INTERNAL REVENUE SERVICE Los Angeles, CA 1981 to 1984 Revenue Agent Conducted income tax audits. Position entailed formulation of audit programs for corporate and individual income tax returns, interviews and settlement conferences with taxpayers and representatives. COMPUTER EXPERIENCE Proficient with Windows and all Microsoft Office programs. AFFILIATIONS/ ORGANIZATIONS California Society Municipal Finance Officers Association Member since 1993; Board member 2000 to 2008; President 2006; Chapter Chair 1999 to 2003 Government Finance Officers Association Member since 1996 City of Monrovia Employees Federal Credit Union Board member from 2012 to 2019 Holy Name of Mary School, San Dimas Finance Committee member since 2012; Chair since 2016 Festival Committee Chair 2011 to 2019 REFERENCES Furnished Upon Request 20 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-566 MEETING DATE:6/26/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Sunny Han, Acting Chief Financial Officer PREPARED BY:Serena Bubenheim, Acting Assistant Chief Financial Officer Subject: Continued from June 20, 2023 with Public Hearing open - Request to Consider Adopting Resolution No. 2023-24 to Adopt a Budget for the City for Fiscal Year 2023/2024 and Authorize the Corresponding Appropriation and Transfer of $4.9 Million of AES Reserves and $3.9 Million of Equipment Replacement Reserves and Return to a 12-year Paving Cycle; Resolution No. 2023-25 Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024; Resolution No. 2023-23 Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits; Resolution No. 2023-27 Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager; Resolution No. 2023-28 to Adopt a Revised General Fund Reserve Policy; Resolution No. 2023-26 Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code; Approve and Authorize the execution of Amendment No. 2 to the Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program; Approve and Authorize the Execution of Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services; Approve and Authorize the Execution of Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates for Sales and Use Tax Allocation and Audit Services; Approve the Budget Balancing Plan to Proactively Address the Fiscal Year 2024/25 Projected General Fund Deficit; and, Approve Modifications to the Frequency of Select Boards and Commissions (“BCCs”) and Direct Staff to Update Municipal Code Section 2.100, “Operating Policy for Boards and Commissions” to Formalize a Process for BCC-directed Assignments Exceeding Four (4) Hours of Staff Time. Statement of Issue: The City Charter of the City of Huntington Beach requires a Public Hearing prior to the adoption of City of Huntington Beach Printed on 6/23/2023Page 1 of 14 powered by Legistar™21 File #:23-566 MEETING DATE:6/26/2023 The City Charter of the City of Huntington Beach requires a Public Hearing prior to the adoption of the City’s annual budget. The City Charter further requires adoption of the annual budget by June 30, 2023, for Fiscal Year (FY) 2023/24. Financial Impact: Proposed Budget:The Fiscal Year 2023/24 Proposed Budget is structurally balanced. The All Funds Proposed Budget equals $508.8 million. The General Fund Proposed Budget totals $285.6 million, with the planned use of $8.8 million in General Fund reserves. Individual departmental and fund-level appropriations are contained in the attachments herein. Employee Tax Override:Pursuant to Chapter 3.07 of the Municipal Code, the Proposed Budget for Fiscal Year 2023/24 assumes the continuation of the Retirement Tax Cap of $0.01500 per $100 of assessed value. As of the most recent audited financial statements, this tax rate resulted in $7.9 million in revenue in Fiscal Year 2021/22. This recurring revenue source is included in the Proposed FY 2023/24 Budget. Update to the City’s General Fund Reserve Balance Policy:The City desires to maintain a prudent level of reserves and the Government Finance Officers Association (GFOA) recommends a minimum of two months of operating expenditures be set aside for unforeseen events. Staff is recommending consolidating certain General Fund Assignments into the Economic Uncertainties Reserve in order to meet the two-month reserve requirement. Additionally, staff is recommending strengthening the City’s Reserve policy to ensure that funds are set aside systematically and used only when truly necessary. Mind OC Contract Extension:Staff is requesting approval to amend the professional services contract with Mind OC for the Be Well HB mobile crisis response program. The City has been awarded federal and state grants (U.S. Department of Health and Human Services and California Dept. of Health Care Services) to offset the cost of the program for FY 2023/24. Funding for future years will be identified in future budgets. National Development Council Contract:Staff is requesting approval to execute a new professional services contract with National Council for Community Development (NDC). Funding for this contract is provided through the annual allocations for the Community Development Block Grant and HOME programs and the Community Development Department’s annual operating budget. Hinderliter, De Llamas and Associates Contract:Staff is requesting approval to execute a new professional services contract with Hinderliter, De Llamas and Associate). Funding for this contract is included in the Finance Department’s annual operating budget. Recommended Action: A) Adopt Resolution No. 2023-24, “A Resolution of the City Council of the City of Huntington Beach Adopting a Budget for the City for Fiscal Year 2023/2024” (Attachment 2); and, B) Authorize the Professional Services included in the FY 2023/24 budget to be representative of the services projected to be utilized by departments in FY 2023/24 (Attachment 3); and, City of Huntington Beach Printed on 6/23/2023Page 2 of 14 powered by Legistar™22 File #:23-566 MEETING DATE:6/26/2023 C) Authorize the appropriation and transfer of the full balance ($4.9 million) of the AES Reserve from the General Fund to the AES Mitigation Fund 1284; and, D) Authorize the appropriation and transfer of $3,903,803 from the General Fund Equipment Replacement Reserve to the Equipment Replacement Fund 324; and, E) Approve the return to a 12 year paving cycle; and, F) Adopt Resolution No. 2023-25, “A Resolution of the City Council of the City of Huntington Beach Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024” of $1,171,687,773” (Attachment 4); and, G) Adopt Resolution No. 2023-23, “A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits” (Attachment 5); and, H) Adopt Resolution No. 2023-27, “A Resolution of the City Council of the City of Huntington Beach Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager” (Attachment 6); and, I) Adopt Resolution No. 2023-28, “A Resolution of the City Council of the City of Huntington Beach Adopting a Revised General Fund Reserve Policy” (Attachment 7) and authorize the City Manager or designee to execute all administrative and budgetary actions necessary to consolidate certain General Fund Assigned Fund Balances to the Economic Uncertainties Reserve in order to meet the City’s two-month Emergency Reserve requirement; and, J) Adopt Resolution No. 2023-26, “A Resolution of the City Council of the City of Huntington Beach, California Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code” (Attachment 8); and, K) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program” (Attachment 9); and, L) Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services” (Attachment 10); and, City of Huntington Beach Printed on 6/23/2023Page 3 of 14 powered by Legistar™23 File #:23-566 MEETING DATE:6/26/2023 M) Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates for Sales and Use Tax Allocation and Audit Services” (Attachment 11); and, N) Approve the Budget Balancing Plan to proactively address the Fiscal Year 2024/25 Projected General Fund Deficit; (Attachment 12); and, O) Approve modifications to the frequency of select Boards and Commissions (“BCCs”) and direct staff to update Municipal Code Section 2.100, “Operating Policy for Boards and Commissions,” to formalize a process for BCC-directed assignments exceeding four (4) hours of staff time. Alternative Action(s): A. Instruct City staff regarding changes to be incorporated into the budget and adopt the FY 2023/24 Budget and corresponding actions and resolutions as amended. B. Continue the Public Hearing to a future date. Analysis: As required by the City Charter, the City Manager submitted the FY 2023/24 Proposed Budget to the City Council on May 7, 2023. The Proposed Budget and the Five-Year Capital Improvement Program (CIP) were also discussed at a City Council Study Session held on May 16, 2023. The purpose of the budget study session was to provide the City Council an opportunity to discuss the Proposed Budget with staff before proceeding with the formal Public Hearing on June 6, 2023. Overview Over the past couple years, the City has come together in an extraordinary way to address the fiscal and public health challenges of the COVID-19 pandemic. Through the leadership and support of the City Council, the City implemented significant cost saving measures without reductions in essential service levels, including a Citywide Separation Incentive Program and reorganization plan, and refinancing of the City’s pension debt. As a result of these measures, and numerous other measures taken over the past couple years, we project a $3.8 million dollar General Fund surplus for FY 2022/23. Inclusive of these significant budget measures, the FY 2023/24 Proposed Budget also includes mandated and additional one-time savings to mitigate the City’s rising pension costs; prioritizes improvements to the City’s facilities, roads and parks; incorporates increased funding for critical programs such as Workers’ Compensation and General Liabilities; accounts for increases to the City’s contractual obligations and inflationary cost impacts; and includes the addition of 11 positions across various City departments to meet increased demand and bring critical services in-house. The FY 2023/24 Proposed Budget is structurally balanced and totals $508.8 million across All Funds. This reflects a $23.2 million, or 4.4 percent, decrease from the FY 2022/23 Adopted All Funds Budget of $532.0 million. A significant portion of the decrease is due to the one-time redistribution of $29.6 City of Huntington Beach Printed on 6/23/2023Page 4 of 14 powered by Legistar™24 File #:23-566 MEETING DATE:6/26/2023 of $532.0 million. A significant portion of the decrease is due to the one-time redistribution of $29.6 million of American Rescue Plan Act (ARPA) funds to the General Fund in FY 2022/23 for the provision of core governmental services. For FY 2023/24, General Fund revenue is projected at $280.4 million, a $2.8 million, or 1 percent decrease from the FY 2022/23 Adopted Budget. Major sources of General Fund revenue include Property Tax, Sales Tax, Utility Users Tax, and Transient Occupancy Tax, among others. The largest decrease in General Fund revenue is in Non-Operating Revenue, attributable to the one-time transfer of ARPA funds for general governmental services that was included in the FY 2022/23 Adopted Budget. The largest revenue increase is in Property Tax, with expected revenues totaling $104.2 million due to gains in assessed property valuations. Franchise and Utility Users Taxes are anticipated at $33.0 million, a 21.8 percent increase, driven by increases in utility prices including gas and electricity. Charges for Current Services is projected to increase $6.4 million due to increased demand for services, including medical transports, recreation classes and building and planning services. The Proposed General Fund Expenditure Budget totals $285.6 million and is supported by revenues of $280.4 million, plus the one-time use of $8.8 million in General Fund Reserves. Use of reserves include the transfer of $3.9 million from the Equipment Replacement Reserve to the Equipment Replacement Fund for the purchase of critical infrastructure and public safety vehicles and equipment. The full balance of the AES Reserve ($4.9 million) is being transferred to a new AES Mitigation Fund to be used for various Capital Improvement Projects as outlined in the Memorandum of Understanding between the City and AES Southland Development LLC. The Proposed General Fund Budget has no reliance on one-time revenues to fund ongoing operations, which is critical to maintaining the City’s financial viability and success and represents a $16.6 million, or 6.2 percent, increase compared to the FY 2022/23 Adopted Budget of $269.0 million. This increase is attributable to higher personnel costs arising from the addition of 11 full time employees, increased Workers’ Compensation and overtime costs, and inflationary impacts on normal business activities. The FY 2023/24 Proposed Budget includes 1,002.75 Full Time Equivalents (FTEs); an increase of 11 FTEs across all funds compared to FY 2022/23. The new positions include 1 Deputy Community Prosecutor, 2 Senior Deputy City Attorneys and 1 Senior Legal Assistant in the City Attorney’s Office. A Municipal Records Manager is being added to the City Clerk’s Office to assist with the citywide centralization of records management, and 1 Graphic Designer and 1 Multi-Media Officer are proposed to oversee the operations of the City’s Cable “3” Channel, YouTube Channel and online digital content, and to assist with citywide public information materials in the Office of Communications, bringing part of currently contracted services in-house. Three new positions are included in the Community Development Department to provide timely inspection and plan review services and improve long-term service delivery. One HR Analyst is included in Risk Management to support increased workload, mitigate risk and ensure compliance with regulatory requirements. The FY 2023/24 Proposed Budget was carefully prepared to balance immediate priorities along with the need for long-term investments. The Proposed Budget does not include any financial impacts of agreements with bargaining groups that are under consideration by the City; the City Budget will be City of Huntington Beach Printed on 6/23/2023Page 5 of 14 powered by Legistar™25 File #:23-566 MEETING DATE:6/26/2023 agreements with bargaining groups that are under consideration by the City; the City Budget will be amended as bargaining group agreements are approved by the City Council. The City Budget reflects the priorities of the City Council and outlines a plan committed to enriching the quality of life for our residents, businesses, and visitors by increasing funding for core services such as public safety, community & library service programs, and improving the City’s infrastructure. Budget Balancing Plan At the June 6 th City Council meeting, City staff were directed to provide a budget balancing plan to proactively address the FY 2024/25 General Fund projected deficit. Departments submitted potential revenue opportunities and expenditure reductions totaling $7,179,520 for Council review, as summarized below: Summary Proposed Revenue Opportunities 1,653,295 Expenditure Reductions (One-Time)1,643,297 Expenditure Reductions (Ongoing)3,882,928 7,179,520 Department Reductions and Revenue Opportunities Proposed City Manager 118,610 City Attorney - City Clerk 123,050 Community & Library Services 1,157,548 Finance 273,251 Fire 1,292,695 Human Resources 35,000 Information Services 440,000 Community Development 625,487 Police 60,000 Public Works 655,582 City Treasurer - Citywide 2,398,297 7,179,520 The anticipated service level impacts are listed in Attachment 12. As the Fiscal Year 2023/24 Proposed Budget is balanced, staff is recommending a phased approach for Council-approved budget reductions based on the level of effort involved in implementing certain expenditure reductions and the service level impacts to the community. Level One:Effective July 1, 2023. The process to implement increased revenue options would begin at the start of Fiscal Year 2023/24. Approved budget reductions would be included in the Fiscal Year 2023/24 Adopted Budget. REVENUE OPPORTUNITIES No.Revenue Generating Service Type Dept Amount 1 Update the Master Fee and Charges Schedule Ongoing All 198,000 2 Evaluate Emergency Medical Service (EMS) Fees Ongoing Fire 936,254 3 Lifeguard Tower Advertisements Ongoing Fire 356,441 4 Police Fines and Fees Ongoing Police 60,000 5 LPR (License Plate Readers) Citation Revenue Ongoing Comm & Lib Svcs 102,600 1,653,295 City of Huntington Beach Printed on 6/23/2023Page 6 of 14 powered by Legistar™26 File #:23-566 MEETING DATE:6/26/2023 REVENUE OPPORTUNITIES No.Revenue Generating Service Type Dept Amount 1 Update the Master Fee and Charges Schedule Ongoing All 198,000 2 Evaluate Emergency Medical Service (EMS) Fees Ongoing Fire 936,254 3 Lifeguard Tower Advertisements Ongoing Fire 356,441 4 Police Fines and Fees Ongoing Police 60,000 5 LPR (License Plate Readers) Citation Revenue Ongoing Comm & Lib Svcs 102,600 1,653,295 BUDGET REDUCTIONS No.Cost Reductions Type Dept Amount 1 Partial reprogramming of one-time revenues from Emerald Cove loan repayment One-time Citywide 1,138,297 2 Employee Work Enhancements Ongoing Citywide 712,000 3 Circuit Ongoing Citywide 350,000 4 Eliminate City Clerk Remodel CIP One-time City Clerk 100,000 5 Reclassify Director of Homeless & Behavioral Health position to Manager.Ongoing City Mgr 57,519 6 Employee Medical Exams Ongoing HR 35,000 7 Eliminate funding for MySidewalk dashboard program Ongoing Info Svcs 80,000 8 Eliminate IS Service Van One-time Info Svcs 60,000 9 Reduce Equipment Replacement One-time Info Svcs 300,000 10 Terminate Ice Rink Contract (if single sponsor does not materialize by date)Ongoing Comm & Lib Svcs 157,594 11 Aquatics Summer Swim Lesson Expansion Ongoing Comm & Lib Svcs 138,950 12 Eliminate a portion of the temporary salaries budget in the Housing and Permit Center Divisions and shift restricted fund grant work to the Senior Management Analyst Ongoing Comm Dev 203,739 13 Code Enforcement Replacement Vehicles - downgrade three vehicle replacement upgrades from trucks to sedans One-time/ Ongoing Comm Dev 60,000 3,393,099 Level Two:Effective January 1, 2024. Due to the level of effort and service level impacts for these budget reductions, items approved for elimination by City Council in this category may take an estimated six months to implement. BUDGET REDUCTIONS No.Cost Reductions Type Dept Amount 1 Eliminate Temporary Dept Asst II Ongoing City Clerk 23,050 2 Reclassify Multimedia Officer to Multimedia Coordinator Ongoing City Mgr 31,091 3 Reduce Professional/Contract Services by eliminating contingency and reducing SOW (CMO)Ongoing City Mgr 30,000 4 Principal Finance Analyst (Budget) - Defund (1)Ongoing Finance 143,253 5 Call Center Part-time Staff Ongoing Finance 35,000 6 Reduce various Public Works contract and maintenance budgets.Ongoing Public Works 46,700 7 Revise tree trimming from 6-year to 7-year cycle Ongoing Public Works 100,000 8 Reduce contract and weekly landscape service for Facilities to 2x per month.Ongoing Public Works 123,882 9 Gate Arm Efficiency Savings - Temp Salaries Ongoing Comm & Lib Svcs 42,000 10 Eliminate Citywide Security Services Ongoing Comm & Lib Svcs 147,692 11 Eliminate Park Ranger Services Ongoing Comm & Lib Svcs 78,075 12 Senior Center - Saturday Closure Ongoing Comm & Lib Svcs 14,450 13 Edison/Murdy -5 hr less/week Ongoing Comm & Lib Svcs 17,000 14 Closure - Central Library (Sundays)Ongoing Comm & Lib Svcs 150,000 15 Reduction in Open Hours - Central Library (reduce Monday by 2 hrs; Tuesday-Thursday by 3 hrs = 11 hrs/week)Ongoing Comm & Lib Svcs 83,071 16 Community Café Community Forum (costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in-kind)Ongoing Comm & Lib Svcs 35,000 17 Reduce Temporary Salaries, Overtime, Equipment budget in Inspection Services and Administration Ongoing Comm Dev 123,295 18 Accounting Technician (Accounts Payable) - Defund (1)Ongoing Finance 94,998 19 Reduce beach restroom cleaning intervals during non-peak season months Ongoing Public Works 100,000 20 Reduce contract sign & lighting maintenance services and related equipment funding Ongoing Public Works 62,000 21 Eliminate City funded downtown power washing and porter service and transfer costs to the Downtown BID Ongoing Public Works 154,000 22 Reduce contract and weekly landscape service to Pier Plaza, Bluff Top, & Sunset landscape 2x per month Ongoing Public Works 69,000 23 Defund 1 Care Manager Ongoing Comm & Lib Svcs 24,550 City of Huntington Beach Printed on 6/23/2023Page 7 of 14 powered by Legistar™27 File #:23-566 MEETING DATE:6/26/2023 BUDGET REDUCTIONS No.Cost Reductions Type Dept Amount 1 Eliminate Temporary Dept Asst II Ongoing City Clerk 23,050 2 Reclassify Multimedia Officer to Multimedia Coordinator Ongoing City Mgr 31,091 3 Reduce Professional/Contract Services by eliminating contingency and reducing SOW (CMO)Ongoing City Mgr 30,000 4 Principal Finance Analyst (Budget) - Defund (1)Ongoing Finance 143,253 5 Call Center Part-time Staff Ongoing Finance 35,000 6 Reduce various Public Works contract and maintenance budgets.Ongoing Public Works 46,700 7 Revise tree trimming from 6-year to 7-year cycle Ongoing Public Works 100,000 8 Reduce contract and weekly landscape service for Facilities to 2x per month.Ongoing Public Works 123,882 9 Gate Arm Efficiency Savings - Temp Salaries Ongoing Comm & Lib Svcs 42,000 10 Eliminate Citywide Security Services Ongoing Comm & Lib Svcs 147,692 11 Eliminate Park Ranger Services Ongoing Comm & Lib Svcs 78,075 12 Senior Center - Saturday Closure Ongoing Comm & Lib Svcs 14,450 13 Edison/Murdy -5 hr less/week Ongoing Comm & Lib Svcs 17,000 14 Closure - Central Library (Sundays)Ongoing Comm & Lib Svcs 150,000 15 Reduction in Open Hours - Central Library (reduce Monday by 2 hrs; Tuesday-Thursday by 3 hrs = 11 hrs/week)Ongoing Comm & Lib Svcs 83,071 16 Community Café Community Forum (costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in-kind)Ongoing Comm & Lib Svcs 35,000 17 Reduce Temporary Salaries, Overtime, Equipment budget in Inspection Services and Administration Ongoing Comm Dev 123,295 18 Accounting Technician (Accounts Payable) - Defund (1)Ongoing Finance 94,998 19 Reduce beach restroom cleaning intervals during non-peak season months Ongoing Public Works 100,000 20 Reduce contract sign & lighting maintenance services and related equipment funding Ongoing Public Works 62,000 21 Eliminate City funded downtown power washing and porter service and transfer costs to the Downtown BID Ongoing Public Works 154,000 22 Reduce contract and weekly landscape service to Pier Plaza, Bluff Top, & Sunset landscape 2x per month Ongoing Public Works 69,000 23 Defund 1 Care Manager Ongoing Comm & Lib Svcs 24,550 City of Huntington Beach Printed on 6/23/2023Page 8 of 14 powered by Legistar™28 File #:23-566 MEETING DATE:6/26/2023 BUDGET REDUCTIONSNo.Cost Reductions Type Dept Amount 1 Eliminate Temporary Dept Asst II Ongoing City Clerk 23,050 2 Reclassify Multimedia Officer to Multimedia Coordinator Ongoing City Mgr 31,091 3 Reduce Professional/Contract Services by eliminating contingency and reducing SOW (CMO)Ongoing City Mgr 30,000 4 Principal Finance Analyst (Budget) - Defund (1)Ongoing Finance 143,253 5 Call Center Part-time Staff Ongoing Finance 35,000 6 Reduce various Public Works contract and maintenance budgets.Ongoing Public Works 46,700 7 Revise tree trimming from 6-year to 7-year cycle Ongoing Public Works 100,000 8 Reduce contract and weekly landscape service for Facilities to 2x per month.Ongoing Public Works 123,882 9 Gate Arm Efficiency Savings - Temp Salaries Ongoing Comm & Lib Svcs 42,000 10 Eliminate Citywide Security Services Ongoing Comm & Lib Svcs 147,692 11 Eliminate Park Ranger Services Ongoing Comm & Lib Svcs 78,075 12 Senior Center - Saturday Closure Ongoing Comm & Lib Svcs 14,450 13 Edison/Murdy -5 hr less/week Ongoing Comm & Lib Svcs 17,000 14 Closure - Central Library (Sundays)Ongoing Comm & Lib Svcs 150,000 15 Reduction in Open Hours - Central Library (reduce Monday by 2 hrs; Tuesday-Thursday by 3 hrs = 11 hrs/week)Ongoing Comm & Lib Svcs 83,071 16 Community Café Community Forum(costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in-kind)Ongoing Comm & Lib Svcs 35,000 17 Reduce Temporary Salaries, Overtime, Equipment budget in Inspection Services and Administration Ongoing Comm Dev 123,295 18 Accounting Technician (Accounts Payable) - Defund (1)Ongoing Finance 94,998 19 Reduce beach restroom cleaning intervals during non-peak season months Ongoing Public Works 100,000 20 Reduce contract sign & lighting maintenance services and related equipment funding Ongoing Public Works 62,000 21 Eliminate City funded downtown power washing and porter service and transfer costs to the Downtown BID Ongoing Public Works 154,000 22 Reduce contract and weekly landscape service to Pier Plaza, Bluff Top, & Sunset landscape 2x per month Ongoing Public Works 69,000 23 Defund 1 Care Manager Ongoing Comm & Lib Svcs 24,550 BUDGET REDUCTIONS No.Cost Reductions Type Dept Amount 24 Closure - Banning Branch Ongoing Comm & Lib Svcs 63,543 25 Closure - Main Street Branch Ongoing Comm & Lib Svcs 66,883 26 Closure - Helen Murphy Branch Ongoing Comm & Lib Svcs 36,140 27 Code Enforcement Technician - Defund (1)Ongoing Comm Dev 85,933 28 Economic Development Project Manager - Defund (1)Ongoing Comm Dev 152,520 2,133,126 Boards and Commissions Implementation of the proposed budget balancing plan will increase the workload on City staff and reduce the time available to complete core work duties. To ensure that core City functions are maintained, staff is requesting policy direction from Council to reduce the frequency of meetings to every other month for a minimum period of one year for the following Boards and Commissions: ·Harbour Commission ·Finance Commission ·Jet Noise Commission ·Historic Resources Board ·Central Park Collaborative Additionally, any Boards and Commissions request for staff efforts beyond four (4) hours, as determined by the primary staff liaison, with concurrence by the department head and City Manager, will require City Council approval. Approved requests will be completed based on staff capacity and in the following priority order: (1) Day-to-day responsibilities and (2) Strategic Plan priorities. Formalizing this process will require review and updates to Municipal Code Section 2.100,Operating Policy for Boards and Commissions. The regular report to the City Council on the Strategic Plan will note changes to implementation of priorities due to work related to City Council-approved assignments beyond core Boards and Commissions duties. Professional Services As established by Administrative Regulation Number 228, each department has submitted a list of professional services that are generally contained in their Proposed Budgets (Attachment 3). Professional services contracts are subject to compliance with Administrative Regulation Number 228 City of Huntington Beach Printed on 6/23/2023Page 9 of 14 powered by Legistar™29 File #:23-566 MEETING DATE:6/26/2023 Professional services contracts are subject to compliance with Administrative Regulation Number 228 and City Ordinance Chapter 3.03. Paving Cycle In August 2022, staff gave a study session presentation on the Pavement Management Plan (PMP) Overview.At this study session Council provided direction to implement a 9-year zone cycle instead of the previous 12-year zone cycle, of which the last zone of the first 12-year cycle is currently under construction. In working through the CIP process, and working to achieve a balanced budget, staff reviewed the cost/benefit of a 9-year cycle to a 12-year cycle. After this review staff is recommending a 12-year cycle for the following reasons: 1. Over 7 years, the Pavement Classification Index (PCI) would only increase by 1 point (83.4 to 84.4), and both scores are in the “good” condition rating; 2. The construction cost for the 9-zone program totals $2.5 million more annually than the 12- zone program; and 3. The City has seen success with the 12-year zone program which has achieved an overall PCI of 81.6 which indicates the residential streets are currently in “good” condition. Gann Appropriation Limit In November 1979, the California voters approved Article 13B of the State of California Constitution, which allows the City’s spending of tax proceeds to increase only by factors from the base year of 1978-1979. In June 1990, Proposition 111 was passed, which changed the way the limit is calculated and is outlined as follows. The City may increase its limit annually in two ways: ·By a percentage equal to the increase from the preceding year in county or city population (whichever is greater). ·By an amount equal to the change in per capita personal income in California or the change in the assessment roll the preceding year due to the addition of local non-residential new construction (whichever is greater). The proposed appropriation limit for FY 2023/24 was calculated as follows: FY 2022/23 Appropriation Limit $1,126,155,850 Multiplied by percentage grown in State Per Capita Personal Income 1.0444 Multiplied by change in County Population 0.9962 Proposed FY 2023/24 Appropriation Limit $1,171,687,773 Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund. The General Fund proposed appropriation for FY 2023/24 of $285.6 million is significantly below this appropriation limit (Attachment 4). Examples of proceeds of taxes governed by the Gann Appropriation Limit are: property taxes, sales City of Huntington Beach Printed on 6/23/2023Page 10 of 14 powered by Legistar™30 File #:23-566 MEETING DATE:6/26/2023 Examples of proceeds of taxes governed by the Gann Appropriation Limit are: property taxes, sales taxes, utility taxes, state subventions, fines, forfeitures, interest revenue on regulatory licenses, user charges, and user fees, to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service. Employee Tax Override On July 16, 2012, the City Council adopted an ordinance to permanently cap the tax rate at $0.01500 per $100 of assessed valuation. Therefore, the requested tax levy for FY 2023/24 reflects the same tax rate of $0.01500 per $100 of assessed valuation effective in FY 2012/13 pursuant to Chapter 3.07 of the Municipal Code. Fiscal Year 2023/24 will represent the twelfth year of the application of the permanent cap. The current capped Employee Tax Override results in an approximate $75 annual tax levy for a property assessed at $500,000. Revenue generated from this property tax helps the City fund public safety employee pension costs associated with pre-1978 retirement benefit levels. As such, the tax can only pay for the estimated costs associated with the public safety pension benefit formulas in place prior to the enactment of Proposition 13 on July 1, 1978. Hence, the tax can only pay for retirement benefits for all retired, current, and future public safety City employees that were contracted for prior to July 1, 1978 (such as the 2% at 50 benefit formula for Safety employees in place before enactment of Proposition 13). Based on the most recent CalPERS actuarial valuations, the cost of pre-1978 retirement benefit levels for Safety personnel totals $26.1 million. As such, the proposed tax rate is recouping only 27 percent of eligible Safety personnel retirement costs. Due to the County of Orange’s timeline for approving the tax rate and the city’s budget cycle, the rate must be set before the City Council takes action on its annual budget. The recommended assessment rate would maintain essential services for Fiscal Year 2023/24 (Attachment 5). Public Hearing The City Charter requires that a public hearing be conducted on the City budget prior to adoption. Public Hearing notices have been published per City Charter requirements (Attachment 1). At the close of this hearing, all legal requirements for budget adoption will have been met. Update to the General Fund Reserve Policy The City desires to maintain a prudent level of reserves based on the revenue impacts described above and the City's desire to maintain strong bond ratings to minimize borrowing costs. The Government Finance Officers Association (GFOA) recommends a minimum of two months of operating expenditures be set aside for unforeseen events. Cities with robust fiscal reserve policies are more likely to receive improved bond ratings based on higher scores related to financial management policies and improved fund balance reserves. Staff is recommending consolidating certain General Fund Assignments into the Economic Uncertainties Reserve in order to meet the two-month reserve requirement, as listed below: City of Huntington Beach Printed on 6/23/2023Page 11 of 14 powered by Legistar™31 File #:23-566 MEETING DATE:6/26/2023 Additionally, staff is recommending: (1) a minimum of 25% of unrestricted one-time revenues would be transferred to the Section 115 Trust, and (2) strengthening the City’s Reserve policy to ensure that funds are set aside systematically and used only when truly necessary and approved by a 6/7th vote of City Council. If Economic Uncertainties Funds are utilized and the level falls below the two-month reserve requirement, the Chief Financial Officer will bring forward a proposed plan to City Council to replenish the fund within three fiscal years. Acknowledge Receipt of Fire Inspections California Health & Safety Code Sections 13146.2 and 13146.3 require all fire departments that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel motel, lodging house, apartment house and certain residential care facilities. These inspections are performed to meet certain building standards. Section 13146.2 of the Code requires departments to report annually to its governing body on its conformance to these requirements. State Senate Bill 1205 requires that effective January 1, 2019, the governing body annually adopt a resolution or other formal document certifying that these inspections were completed and that this document be submitted to the State. During calendar year 2022, the Huntington Beach Fire Department completed annual inspections of all buildings referenced under Sections 13146.2 and 13146.3 of the California Health and Safety Code. This includes the following: This represents inspection rate of 100% of all required facilities. In conformance with Senate Bill 1205, staff recommends the adoption of the resolution shown as City of Huntington Beach Printed on 6/23/2023Page 12 of 14 powered by Legistar™32 File #:23-566 MEETING DATE:6/26/2023 In conformance with Senate Bill 1205, staff recommends the adoption of the resolution shown as Attachment 8. Mind OC Contract Extension Since its successful launch in May 2021, Be Well HB, a pilot mobile crisis response program has become a critical City resource to help with a variety of non-emergency public assistance situations such as mental health crisis, addiction, and homelessness. Council approval is requested to extend the contract with the service provider, Mind OC, for an additional three years until June 30, 2026 (Attachment 9), with an annual contract amount of not-to- exceed $1.5 million. The cost for FY 2023/24 will be 100% covered by a portion of the $500,000 federal grant from the U.S. Department of Health and Human Services and $1.5 million state grant from the California Dept. of Health Care Services. Funding for the two subsequent years will be incorporated into the respective annual operating budgets and program costs may be reduced or eliminated, contingent upon the funding availability in each given year. National Development Council Contract The National Council for Community Development (NDC) provides technical assistance services for housing and economic development activities for the Community Development Department. An existing three-year contract will expire at the beginning of FY 2023/24. Council approval is requested for a new two-year agreement until June 30, 2025 (Attachment 10) with total compensation not to exceed $156,818. Funding for this contract is incorporated in the Community Development Block Grant and HOME program administrative costs, and the Community Development Department’s annual operating budget. The contract procurement required through Municipal Code 3.03 was completed through an executed interagency agreement with San Joaquin County. Hinderliter, De Llamas and Associates Contract Hinderliter, De Llamas and Associates (HdL) provides sales and use tax professional and auditing services to ensure that sales tax allocations made by the State Board of Equalization (BOE) are as accurate as possible and to act on behalf of the City to pursue misallocated funds. An existing three- year contract will expire on July 31, 2023. Council approval is requested for a new three-year agreement through July 31, 2026 (Attachment 11). The proposed new contract includes an annual fixed fee of $10,200 for a total of $30,600 in fixed fees. In addition, HdL would receive 15 percent of any new sales and use tax revenue received by the City as a result of its extensive audit and sales and use tax recovery work, if the tax recovery work is approved by the BOE. This audit fee applies to additional monies received in the first eight consecutive reporting quarters beginning with the receipt of the audit revenue and includes retroactive back-quarter adjustments obtained by the firm. For the most recent three years of available data, HdL recovered approximately $1.75 million in revenue from the BOE on behalf of the City and has recovered over $14 million since the City began contracting with HdL in 1990. Funding for this contract is incorporated in the Finance Department’s annual operating budget. The contract procurement required through Municipal Code 3.03 was completed through an executed interagency agreement with the City of Bakersfield. Environmental Status: Not applicable City of Huntington Beach Printed on 6/23/2023Page 13 of 14 powered by Legistar™33 File #:23-566 MEETING DATE:6/26/2023 Strategic Plan Goal: Community Engagement Homeless Response Economic Development & Housing Infrastructure & Parks Fiscal Sustainability, Public Safety or Other Attachment(s): 1. Public Hearing Notice 2. Resolution No. 2023-24, “A Resolution of the City Council of the City of Huntington Beach Adopting a Budget for the City for Fiscal Year 2023/2024” 3. Professional Services included in the Fiscal Year 2023/2024 Budget 4. Resolution No. 2023-25, “A Resolution of the City Council of the City of Huntington Beach Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024” 5. Resolution No. 2023-23, “A Resolution of the City Council of the City of Huntington Beach Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits” 6. Resolution No. 2023-27, “A Resolution of the City Council of the City of Huntington Beach Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager” 7. Resolution No. 2023-28, “A Resolution of the City Council of the City of Huntington Beach Adopting a Revised General Fund Reserve Policy” 8. Resolution No. 2023-26, “A Resolution of the City Council of the City of Huntington Beach, California Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code” 9. Amendment No. 2 to Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program 10. Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services 11. Professional Services Contract between the City of Huntington Beach and Hinderliter, De Llamas and Associates for Sales and Use Tax Allocation and Audit Services 12.Budget Balancing Plan 13.FY 2023/24 Budget Adoption Presentation City of Huntington Beach Printed on 6/23/2023Page 14 of 14 powered by Legistar™34 35 36 37 38 EXHIBIT AATTACHMENT 2 ***COMPLETE COPY AVAILABLE ON CITY'S WEBSITE*** 39 Fund Title Revenue & Transfers In 100 General Fund 280,396,466 101 Specific Events 748,500 201 Air Quality Fund 250,000 206 Traffic Impact 100,000 207 Gas Tax Fund 3,693,743 210 Sewer 167,310 211 Drainage 200,000 212 Narcotics Forfeiture Federal 175,000 213 Measure M Fund 4,171,189 216 Property and Evidence 50,000 217 Affordable Housing In-Lieu 2,901,400 219 Traffic Congestion Relief 42 1,971,422 226 Quimby Fund 400,000 228 Park Dev Impact Res 750,000 229 Library Development Impact 50,000 233 Housing Residual Receipts 790,201 234 Disability Access Fund 84,000 235 Park Dev Impact Non Res 100,000 236 Public Art in Parks 15,000 239 CDBG 1,171,668 240 HOME 668,370 243 Surf City "3" Cable Channel 490,000 308 In-Lieu Parking Downtown 54,466 314 Infrastructure Fund 15,000,000 322 ELM Automation Fund 400,000 323 Technology Fund 1,000,000 324 Equipment Fund 7,140,581 350 RORF 12,897,830 352 LMIHAF 4,001,050 401 Debt Svc HBPFA 2,967,681 405 Debt Svc Grand Coast CFD 2000-1 1,091,307 408 Debt Svc McDonnell CFD 2002-1 442,692 410 Debt Svc Bella Terra 2,638,306 412 Pension Liability 29,432,240 501 Certified Unified Program Agency 262,500 504 Refuse Collection Service 15,799,711 506 Water 44,783,425 507 Water Master Plan 3,957,600 508 WOCWB 1,557,000 511 Sewer Service Fund 10,747,168 551 Self Insurance Workers' Comp 11,164,142 552 Self Insurance General Liability 11,738,297 703 Retirement Supplement 1,434,000 704 Fire JPA Fund 405,866 709 BID Hotel/Motel 6,632,000 710 BID Downtown 107,000 EXHIBIT B City of Huntington Beach Estimated Revenue and Transfers In Fiscal Year 2023/24 Budget ATTACHMENT 2 40 Fund Title Revenue & Transfers In EXHIBIT B City of Huntington Beach Estimated Revenue and Transfers In Fiscal Year 2023/24 Budget ATTACHMENT 2 711 Parking Structure-Bella Terra 967,698 712 Parking Structure-Strand 1,550,000 716 Section 115 Trust 2,573,890 807 Energy Efficiency 19,200 963 Sr Mobility Program 356,293 979 AB109 Public Safety Realignment 112,067 984 SLESF Grant 475,000 995 Hwy Safety Improvement Program 675,090 1228 CalRecycle City/County CRV 49,015 1246 CENIC E-Rate 60,000 1247 Arterial Rehabilitation 4,917,993 1283 OCTA Trash Removal Phase II 500,000 1284 AES Mitigation 4,900,000 Total Revenue 502,155,377 41 Department/Fund Title Appropriations & Transfers Out General Fund (Company 100) City Council 491,444 City Attorney 3,757,580 City Clerk 1,212,310 City Treasurer 1,860,916 City Manager 4,057,778 Community Development 11,003,285 Community & Library Services 15,885,029 Finance 5,458,185 Fire 56,502,971 Human Resources 2,664,343 Information Services 8,230,189 Police 84,590,019 Public Works 24,141,821 Non-Departmental 65,708,370 Sub-Total General Fund 285,564,240 Other Funds (Company Number and Title) 101 Specific Events 748,500 122 Inmate Welfare Fund 40,000 201 Air Quality Fund 387,500 206 Traffic Impact 496,010 207 Gas Tax Fund 3,164,188 210 Sewer 800,000 211 Drainage 424,000 212 Narcotics Forfeiture Federal 175,000 213 Measure M Fund 3,500,516 216 Property and Evidence 100,000 219 Traffic Congestion Relief 42 2,140,000 226 Quimby Fund 554,000 228 Park Dev Impact Residential 522,152 233 Housing Residual Receipts 30,000 234 Disability Access Fund 84,000 239 CDBG 1,560,363 240 HOME 913,370 242 Narcotics Forfeiture - Treasury 160,000 243 Surf City "3" Cable Channel 490,000 308 In-Lieu Parking Downtown 50,000 314 Infrastructure Fund 14,865,028 322 ELM Automation Fund 452,751 324 Equipment Fund 7,140,581 EXHIBIT C City of Huntington Beach Proposed Appropriations & Transfers Out Fiscal Year 2023/24 Budget ATTACHMENT 2 4 of 2142 Department/Fund Title Appropriations & Transfers Out EXHIBIT C City of Huntington Beach Proposed Appropriations & Transfers Out Fiscal Year 2023/24 Budget ATTACHMENT 2 Other Funds (Company Number and Title - Continued) 350 RORF 13,029,888 352 LMIHAF 25,000 401 Debt Svc HBPFA 2,967,681 405 Debt Svc Grand Coast CFD 2000-1 1,091,307 408 Debt Svc McDonnell CFD 2002-1 442,692 410 Debt Svc Bella Terra 2,638,306 412 Pension Liability 22,569,835 501 CUPA 259,932 504 Refuse Collection Service 15,704,174 506 Water 52,394,268 507 Water Master Plan 2,723,519 508 WOCWB 857,000 511 Sewer Service Fund 18,474,918 551 Self Insurance Workers' Comp 11,661,463 552 Self Insurance General Liab 10,567,555 702 Retiree Insurance Fund 1,306,975 703 Retirement Supplement 6,371,618 704 Fire JPA Fund 512,530 709 BID Hotel/Motel 6,632,000 710 BID Downtown 107,000 711 Parking Structure-Bella Terra 967,698 712 Parking Structure-Strand 1,644,350 716 Section 115 Trust 75,000 807 Energy Efficiency 18,600 963 Sr Mobility Program 356,293 979 AB109 Public Safety Realignment 95,555 984 SLESF Grant 12/13 450,000 995 Hwy Safety Improvement Program 675,090 1228 CalRecycle City/County CRV 94,397 1234 Sustainable Business Cert Program 36,210 1246 CENIC E-Rate 60,000 1247 Arterial Rehab 4,600,000 1283 OCTA Trash Removal Phase II 500,000 1284 AES Mitigation 4,545,000 Sub-Total Other Funds 223,253,813 Total City Appropriations 508,818,053 5 of 2143 DEPARTMENT FY 2020/21 Actual FY 2021/22 Actual FY 2022/23 Adopted FY 2022/23 Revised FY 2023/24 Proposed Change From Prior Year City Council 1.00 1.00 1.00 1.00 1.00 0.00 City Attorney 11.00 11.00 11.00 11.00 15.00 4.00 City Clerk 4.00 4.00 5.00 5.00 6.00 1.00 City Treasurer 1.50 1.50 1.50 9.50 9.50 0.00 City Manager 7.00 8.00 14.00 14.00 16.00 2.00 Community Development 54.00 57.50 57.50 57.50 60.50 3.00 Community & Library Services 60.25 62.25 62.25 62.25 62.25 0.00 Finance 31.50 32.50 34.50 28.50 28.50 0.00 Fire 200.00 201.00 201.00 201.00 201.00 0.00 Human Resources 12.00 13.00 13.00 13.00 14.00 1.00 Information Services 21.00 25.00 25.00 25.00 25.00 0.00 Police 356.00 357.00 353.00 353.00 353.00 0.00 Public Works 199.00 207.00 211.00 211.00 211.00 0.00 Total 958.25 980.75 989.75 991.75 1,002.75 11.00 DEPARTMENT FY 2020/21 Actual FY 2021/22 Actual FY 2022/23 Adopted FY 2022/23 Revised FY 2023/24 Proposed Change From Prior Year City Council 1.00 1.00 1.00 1.00 1.00 0.00 City Attorney 11.00 11.00 11.00 11.00 15.00 4.00 City Clerk 4.00 4.00 5.00 5.00 6.00 1.00 City Treasurer 1.50 1.50 1.50 8.75 8.75 0.00 City Manager 7.00 8.00 14.00 14.00 15.90 1.90 Community Development 49.52 53.02 52.85 52.85 56.52 3.67 Community & Library Services 56.41 58.41 58.50 58.50 59.00 0.50 Finance 29.92 31.10 32.10 26.85 26.85 0.00 Fire 196.20 197.30 197.30 197.30 197.30 0.00 Human Resources 9.40 10.70 10.70 10.70 11.70 1.00 Information Services 21.00 24.47 24.47 24.47 24.47 0.00 Police 353.00 355.00 351.00 351.00 351.00 0.00 Public Works 53.00 55.90 56.40 56.40 58.70 2.30 Total 792.95 811.40 815.82 817.82 832.19 14.38 Note: Reflects the Table of Organization for Fiscal Year 2023/24; however, 12 positions are defunded. EXHIBIT D City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel ALL FUNDS GENERAL FUND ATTACHMENT 2ATTACHMENT 2 44 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed CITY COUNCIL Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Council Member *5.00 5.00 5.00 5.00 5.00 Mayor *1.00 1.00 1.00 1.00 1.00 Mayor Pro Tempore *1.00 1.00 1.00 1.00 1.00 Total - City Council 8.00 8.00 8.00 8.00 8.00 * Mayor, Mayor Pro Tempore and Council Members are not included in the FTE Count. CITY ATTORNEY Assistant City Attorney 1.00 Chief Assistant City Attorney 2.00 1.00 1.00 1.00 1.00 Chief Litigation Counsel 1.00 1.00 1.00 1.00 City Attorney 1.00 1.00 1.00 1.00 1.00 Deputy City Attorney II 1.00 1.00 1.00 1.00 Deputy Community Prosecutor 1.00 1.00 1.00 1.00 2.00 1 Legal Assistant 2.00 1.00 1.00 1.00 1.00 Senior Deputy City Attorney 3.00 3.00 3.00 3.00 5.00 2 Senior Legal Assistant 1.00 2.00 2.00 2.00 3.00 3 Total - City Attorney 11.00 11.00 11.00 11.00 15.00 CITY CLERK Assistant City Clerk 1.00 1.00 1.00 1.00 1.00 City Clerk 1.00 1.00 1.00 1.00 1.00 Municipal Records Manager 1.00 4 Records Specialist 1.00 1.00 1.00 Senior Deputy City Clerk 2.00 2.00 2.00 2.00 2.00 Total - City Clerk 4.00 4.00 5.00 5.00 6.00 City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 45 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 CITY TREASURER Accounting Technician **3.00 3.00 Accounting Technician Supervisor **1.00 1.00 City Treasurer 1.00 1.00 1.00 1.00 1.00 Deputy City Treasurer 1.00 1.00 Senior Accountant **1.00 1.00 Senior Accounting Technician **1.00 1.00 Senior Administrative Assistant 0.50 0.50 0.50 0.50 0.50 Treasury Manager **1.00 1.00 Total - City Treasurer 1.50 1.50 1.50 9.50 9.50 ** Position transferred from the Finance Department to the City Treasurer's Department beginning FY 2022/23 CITY MANAGER Assistant City Manager 1.00 1.00 1.00 1.00 1.00 Assistant to the City Manager 1.00 1.00 1.00 City Manager 1.00 1.00 1.00 1.00 1.00 Council Policy Analyst 1.00 1.00 1.00 1.00 Deputy City Manager 1.00 1.00 Director of Homelessness & Behavioral Health Services ***1.00 1.00 1.00 Executive Assistant to the City Manager 1.00 1.00 1.00 Graphic Designer 1.00 5 Management Aide 1.00 1.00 1.00 1.00 Multi-Media Officer 1.00 6 Principal Management Analyst 2.00 1.00 1.00 1.00 1.00 Public Affairs Manager 1.00 1.00 1.00 1.00 Public Affairs Officer 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 Social Services Supervisor ***1.00 1.00 1.00 Social Worker ***2.00 2.00 2.00 Volunteer Services Coordinator ***1.00 1.00 1.00 Total - City Manager 7.00 8.00 14.00 14.00 16.00 *** Position transferred from the Police Department to the City Manager's Office beginning FY 2022/23 46 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 COMMUNITY DEVELOPMENT Administrative Assistant 2.00 2.00 2.00 2.00 2.00 Deputy Director of Comm Dvlpmt 2.00 2.00 2.00 2.00 2.00 Director of Community Development 1.00 1.00 1.00 1.00 1.00 Management Analyst 1.00 1.00 1.00 1.00 1.00 Principal Management Analyst 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior GIS Analyst 1.00 1.00 1.00 1.00 1.00 Subtotal Administration 9.00 9.00 9.00 9.00 9.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Assistant Planner 2.00 2.00 2.00 2.00 2.00 Associate Planner 3.00 4.00 4.00 4.00 4.00 Building Inspection Manager 1.00 1.00 1.00 1.00 Building Inspector 1.00 1.00 1.00 1.00 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 Combination Inspector 1.00 1.00 1.00 1.00 3.00 7 Inspection Supervisor 1.00 Office Assistant II 1.00 1.00 1.00 1.00 Permit & Plan Check Supervisor 1.00 1.00 1.00 1.00 1.00 Permit Technician 1.00 1.00 1.00 1.00 Plan Check Engineer 1.00 1.00 1.00 1.00 2.00 8 Planning Manager 1.00 1.00 1.00 1.00 1.00 Principal Combination Inspector 2.00 2.00 2.00 2.00 2.00 Principal Planner 1.00 1.00 1.00 1.00 1.00 Senior Combination Inspector 6.00 6.00 6.00 6.00 6.00 Senior Permit Technician 4.00 4.00 4.00 4.00 4.00 Senior Planner 2.00 2.00 2.00 2.00 2.00 Subtotal Development Services 28.00 31.00 31.00 31.00 34.00 47 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 COMMUNITY DEVELOPMENT (continued) Code Enforcement Manager 1.00 1.00 1.00 1.00 1.00 Code Enforcement Officer 3.00 3.00 3.00 3.00 3.00 Code Enforcement Technician 1.00 1.00 1.00 1.00 1.00 Economic Development Manager 1.00 1.00 1.00 1.00 1.00 Economic Development Project Manager 1.00 1.00 1.00 1.00 1.00 Housing Manager 1.00 1.00 1.00 1.00 1.00 Management Aide 1.00 1.00 1.00 1.00 1.00 Office Assistant II 1.00 1.00 1.00 1.00 1.00 Principal Code Enforcement Officer 2.00 2.00 2.00 2.00 2.00 Senior Code Enforcement Officer 4.00 4.00 4.00 4.00 4.00 Senior Management Analyst 1.00 1.50 1.50 1.50 1.50 Subtotal Community Enhancement 17.00 17.50 17.50 17.50 17.50 Total - Community Development 54.00 57.50 57.50 57.50 60.50 COMMUNITY & LIBRARY SERVICES Administrative Assistant 1.00 Deputy Director of Community & Library Services 1.00 1.00 1.00 1.00 1.00 Director of Community & Library Services 1.00 1.00 1.00 1.00 1.00 Management Aide 1.00 1.00 1.00 1.00 Principal Management Analyst 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 Subtotal Administration 5.00 5.00 5.00 5.00 5.00 Community & Library Services Coordinator 2.00 2.00 2.00 2.00 2.00 Community & Library Services Manager 1.00 1.00 1.00 1.00 1.00 Community & Library Services Supervisor 1.00 1.00 1.00 1.00 1.00 Parking & Camping Assistant 1.00 1.00 1.00 1.00 1.00 Parking & Camping Crewleader 1.00 1.00 1.00 1.00 1.00 Parking & Camping Operations Lead 2.00 2.00 2.00 2.00 2.00 Parking & Camping Operations Supervisor 1.00 1.00 1.00 1.00 1.00 Parking Meter Technician 2.00 2.00 2.00 2.00 2.00 Subtotal Facilities & Events 11.00 11.00 11.00 11.00 11.00 48 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 COMMUNITY & LIBRARY SERVICES (continued) Administrative Assistant 1.00 1.00 1.00 1.00 Community & Library Services Coordinator 6.00 5.00 5.00 5.00 5.00 Community & Library Services Manager 1.00 1.00 1.00 1.00 1.00 Community & Library Services Supervisor 4.00 5.00 5.00 5.00 5.00 Office Assistant II 1.00 1.00 1.00 1.00 1.00 Senior Community & Library Svcs Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Services Assistant 1.00 Senior Services Transportation Coordinator 1.00 1.00 1.00 1.00 1.00 Social Services Supervisor 1.00 1.00 1.00 1.00 1.00 Volunteer Services Coordinator 1.00 1.00 1.00 1.00 1.00 Subtotal Programs & Services 17.00 17.00 17.00 17.00 17.00 Accounting Technician 2.00 2.00 2.00 2.00 2.00 Community & Library Services Coordinator 1.00 1.00 1.00 1.00 1.00 Community & Library Services Manager 1.00 1.00 1.00 1.00 1.00 Facilities Maintenance Coordinator 1.00 1.00 Facilities Security Coordinator 1.00 1.00 1.00 1.00 1.00 Librarian I 4.00 6.00 6.00 6.00 6.00 Library Services Assistant 5.50 6.50 6.50 6.50 6.50 Library Specialist 2.00 2.00 2.00 Literacy Program Specialist 2.00 2.00 2.00 2.00 2.00 Principal Librarian 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Community & Library Svcs Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Librarian 4.00 4.00 4.00 4.00 4.00 Senior Library Specialist 0.75 0.75 0.75 1.75 1.75 Volunteer Services Coordinator 1.00 Subtotal Library & Cultural Services 27.25 29.25 29.25 29.25 29.25 Total - Community & Library Services 60.25 62.25 62.25 62.25 62.25 49 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 FINANCE Accounting Technician 1.00 1.00 1.00 Assistant Chief Financial Officer 1.00 1.00 1.00 1.00 1.00 Chief Financial Officer 1.00 1.00 1.00 1.00 1.00 Management Aide 1.00 1.00 1.00 1.00 Principal Information Technology Analyst 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.50 0.50 0.50 0.50 0.50 Subtotal Finance Administration 4.50 4.50 5.50 5.50 5.50 Buyer 1.00 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 Principal Finance Analyst 1.00 1.00 1.00 1.00 1.00 Senior Buyer 1.00 1.00 1.00 1.00 1.00 Senior Finance Analyst 2.00 1.00 1.00 1.00 1.00 Subtotal Budget Management 5.00 5.00 5.00 5.00 5.00 Accounting Technician 3.00 3.00 3.00 3.00 3.00 Accounting Technician Supervisor 1.00 2.00 2.00 2.00 2.00 Finance Manager 1.00 1.00 1.00 1.00 1.00 Payroll Specialist 1.00 2.00 2.00 Principal Finance Analyst 1.00 1.00 1.00 1.00 1.00 Senior Accountant 1.00 2.00 2.00 2.00 2.00 Senior Accounting Technician 1.00 1.00 1.00 1.00 Senior Finance Analyst 1.00 Senior Payroll Specialist 1.00 2.00 2.00 1.00 1.00 Subtotal Accounting Services 11.00 11.00 12.00 13.00 13.00 50 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 FINANCE (continued) Accounting Technician **5.00 5.00 5.00 2.00 2.00 Accounting Technician Supervisor **1.00 1.00 1.00 Business License Supervisor 1.00 1.00 1.00 1.00 1.00 Field Service Representative 1.00 1.00 1.00 1.00 1.00 Finance Manager **1.00 1.00 1.00 Management Analyst 1.00 Senior Accountant **1.00 1.00 Senior Accounting Technician **1.00 2.00 2.00 1.00 1.00 Subtotal Revenue Services 11.00 12.00 12.00 5.00 5.00 Total - Finance 31.50 32.50 34.50 28.50 28.50 ** Position transferred from the Finance Department to the City Treasurer's Department beginning FY 2022/23 FIRE Accounting Technician 2.00 2.00 2.00 2.00 2.00 Fire Chief 1.00 1.00 1.00 1.00 1.00 S Management Aide 1.00 1.00 1.00 1.00 1.00 Principal Management Analyst 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 Subtotal Administration 6.00 6.00 6.00 6.00 6.00 Management Analyst 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 Administrative Fire Captain ^2.00 2.00 2.00 2.00 2.00 S Administrative Assistant 2.00 2.00 2.00 2.00 2.00 Deputy Fire Marshal 2.00 2.00 2.00 2.00 2.00 Fire Deputy Chief 1.00 1.00 1.00 1.00 1.00 S Fire Division Chief 1.00 1.00 1.00 1.00 1.00 S Fire Marshal 1.00 1.00 1.00 1.00 1.00 Fire Prevention Inspector 1.00 1.00 1.00 1.00 1.00 Senior Fire Prevention Inspector 4.00 4.00 4.00 4.00 4.00 Fire Training Maintenance Technician 1.00 1.00 1.00 1.00 1.00 Subtotal Professional Standards 16.00 17.00 17.00 17.00 17.00 51 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 FIRE (continued) Administrative Fire Captain ^1.00 1.00 1.00 1.00 1.00 S Ambulance Operator 30.00 30.00 30.00 30.00 30.00 Emergency Management Administrator 1.00 1.00 1.00 1.00 1.00 Fire Battalion Chief 3.00 3.00 3.00 3.00 3.00 S Fire Captain 30.00 30.00 30.00 30.00 30.00 S Fire Deputy Chief 1.00 1.00 1.00 1.00 1.00 S Fire Division Chief 1.00 1.00 1.00 1.00 1.00 S Fire Engineer 30.00 30.00 30.00 30.00 30.00 S Fire Medical Coordinator 1.00 1.00 1.00 1.00 1.00 Firefighter 12.00 12.00 12.00 12.00 12.00 S Firefighter Paramedic 48.00 48.00 48.00 48.00 48.00 S Subtotal Emergency Response 158.00 158.00 158.00 158.00 158.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Marine Safety Battalion Chief 3.00 3.00 3.00 3.00 3.00 S Marine Safety Captain 12.00 12.00 12.00 12.00 12.00 S Marine Safety Division Chief 1.00 1.00 1.00 1.00 1.00 S Marine Safety Specialist 3.00 3.00 3.00 3.00 3.00 S Subtotal Marine Safety 20.00 20.00 20.00 20.00 20.00 Subtotal Sworn 150.00 150.00 150.00 150.00 150.00 S Subtotal Non-Sworn 50.00 51.00 51.00 51.00 51.00 Total - Fire 200.00 201.00 201.00 201.00 201.00 52 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 HUMAN RESOURCES Director of Administrative Services 1.00 1.00 1.00 Director of Human Resources 1.00 1.00 Human Resources Analyst 2.00 1.00 1.00 1.00 2.00 9 Human Resources Manager 1.00 1.00 1.00 1.00 1.00 Human Resources Technician 2.00 1.00 1.00 1.00 1.00 Principal Human Resources Analyst 1.00 2.00 2.00 3.00 3.00 Risk Management Specialist 1.00 1.00 1.00 1.00 1.00 Risk Manager 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Human Resources Analyst 2.00 1.00 1.00 1.00 1.00 Senior Human Resources Technician 3.00 3.00 2.00 2.00 Total - Human Resources 12.00 13.00 13.00 13.00 14.00 INFORMATION SERVICES Chief Information Officer 1.00 1.00 Deputy Director of Administrative Services 1.00 1.00 1.00 1.00 10 Information Tech Manager 2.00 2.00 2.00 1.00 2.00 10 Information Tech Project Coordinator 1.00 1.00 1.00 1.00 Information Tech Supervisor 1.00 1.00 1.00 1.00 Information Technology Analyst 4.00 3.00 3.00 3.00 3.00 IT Technician 1.00 2.00 2.00 2.00 2.00 Lead IT Technician 2.00 2.00 2.00 2.00 2.00 Network Systems Administrator 1.00 1.00 1.00 1.00 1.00 Principal Information Technology Analyst 2.00 3.00 3.00 4.00 4.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior GIS Analyst 1.00 1.00 1.00 1.00 1.00 Senior Info Tech Manager 1.00 1.00 1.00 Senior Information Technology Analyst 3.00 4.00 4.00 4.00 4.00 Senior IT Technician 2.00 2.00 2.00 2.00 2.00 Total - Information Services 21.00 25.00 25.00 25.00 25.00 53 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 POLICE Assistant Chief of Police 1.00 S Office Assistant II 1.00 1.00 1.00 1.00 Police Chief 1.00 1.00 1.00 1.00 1.00 S Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Subtotal Administration 3.00 3.00 3.00 3.00 3.00 Community Relations Specialist ***2.00 2.00 1.00 1.00 1.00 Detention Officer 9.00 9.00 9.00 9.00 9.00 Detention Officer - Nurse 4.00 4.00 4.00 4.00 4.00 Detention Shift Supervisor 4.00 4.00 4.00 4.00 4.00 Police Captain 1.00 1.00 1.00 1.00 S Police Lieutenant 1.00 1.00 1.00 1.00 1.00 S Police Officer 3.00 3.00 3.00 3.00 3.00 S Police Sergeant 4.00 4.00 4.00 4.00 4.00 S Police Services Specialist 1.00 1.00 1.00 1.00 1.00 Public Affairs Officer 1.00 1.00 1.00 1.00 1.00 Subtotal Administrative Operations 29.00 30.00 29.00 29.00 29.00 Community Services Officer 3.00 1.00 1.00 1.00 1.00 Director of Homelessness & Behavioral Health Services ***1.00 Parking/Traffic Control Officer 10.00 10.00 10.00 10.00 10.00 Parking/Traffic Control Supervisor 1.00 1.00 1.00 1.00 1.00 Police Captain 1.00 1.00 1.00 1.00 1.00 S Police Lieutenant 2.00 2.00 2.00 2.00 2.00 S Police Officer 37.00 37.00 37.00 37.00 37.00 S Police Sergeant 5.00 6.00 6.00 6.00 6.00 S Senior Helicopter Maintenance Technician 2.00 2.00 2.00 2.00 2.00 Social Services Supervisor ***1.00 Volunteer Services Coordinator ***1.00 Subtotal Special Operations 61.00 63.00 60.00 60.00 60.00 54 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 POLICE (continued) Police Captain 1.00 1.00 1.00 1.00 1.00 S Police Lieutenant 4.00 4.00 4.00 4.00 4.00 S Police Officer ^112.00 111.00 111.00 111.00 111.00 S Police Sergeant 14.00 14.00 14.00 14.00 14.00 S Subtotal Patrol 131.00 130.00 130.00 130.00 130.00 Community Services Officer 6.00 5.00 5.00 6.00 6.00 Crime Analyst 1.00 1.00 1.00 1.00 1.00 Crime Analyst Senior 1.00 1.00 1.00 1.00 Crime Scene Investigator 4.00 5.00 5.00 4.00 4.00 Forensic Systems Specialist 1.00 1.00 1.00 1.00 1.00 Latent Print Examiner 2.00 2.00 2.00 2.00 2.00 Police Captain 1.00 1.00 1.00 1.00 1.00 S Police Lieutenant 2.00 2.00 2.00 2.00 2.00 S Police Officer 39.00 39.00 39.00 39.00 39.00 S Police Sergeant 5.00 5.00 5.00 5.00 5.00 S Police Services Specialist 2.00 2.00 2.00 2.00 2.00 Subtotal Investigations 63.00 64.00 64.00 64.00 64.00 Accounting Technician 3.00 2.00 2.00 2.00 2.00 Civilian Police Services Commander 1.00 1.00 1.00 1.00 1.00 Communications Operator-PD ^18.00 18.00 18.00 18.00 18.00 Communications Supervisor-PD 6.00 6.00 6.00 6.00 6.00 Community Services Officer 1.00 2.00 2.00 2.00 2.00 Human Resources Technician 1.00 1.00 1.00 1.00 1.00 Information Technology Analyst 1.00 1.00 1.00 1.00 1.00 Police Administrative Services Manager 1.00 3.00 3.00 3.00 3.00 Police Communications Manager 1.00 Police Records Administrator 1.00 Police Records Specialist 5.00 4.00 4.00 4.00 4.00 Police Records Supervisor 3.00 4.00 4.00 4.00 4.00 Police Services Specialist 6.00 6.00 6.00 6.00 6.00 Police Systems Coordinator 1.00 1.00 1.00 1.00 1.00 Principal Human Resources Analyst 1.00 1.00 1.00 1.00 1.00 55 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 POLICE (continued) Property and Evidence Officer 3.00 3.00 3.00 3.00 3.00 Property and Evidence Supervisor 1.00 1.00 1.00 1.00 1.00 Public Works Maint Crewleader 1.00 Senior Information Technology Analyst 1.00 1.00 1.00 1.00 1.00 Senior IT Technician 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 1.00 1.00 1.00 1.00 1.00 Senior Police Records Specialist 11.00 10.00 10.00 10.00 10.00 Subtotal Support Services 69.00 67.00 67.00 67.00 67.00 Subtotal Sworn 233.00 233.00 233.00 233.00 233.00 S Subtotal Non-Sworn 123.00 124.00 120.00 120.00 120.00 Total - Police 356.00 357.00 353.00 353.00 353.00 *** Position transferred from the Police Department to the City Manager's Office beginning FY 2022/23 PUBLIC WORKS Accounting Technician 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 Administrative Services Manager 1.00 1.00 1.00 1.00 1.00 Code Enforcement Officer 1.00 1.00 1.00 1.00 1.00 Deputy Director of Public Works 2.00 2.00 2.00 2.00 2.00 Director of Public Works 1.00 1.00 1.00 1.00 1.00 Field Service Representative 1.00 1.00 1.00 1.00 1.00 Management Aide 1.00 1.00 2.00 2.00 Management Analyst 2.00 2.00 2.00 2.00 2.00 Office Assistant II 5.00 5.00 5.00 5.00 5.00 Real Estate & Project Manager 1.00 1.00 1.00 1.00 Senior Accounting Technician 1.00 1.00 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Management Analyst 2.00 2.00 2.00 2.00 2.00 Subtotal Administration 19.00 21.00 21.00 21.00 21.00 56 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 PUBLIC WORKS (continued) Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Electrician 1.00 1.00 1.00 1.00 1.00 Equipment Parts Inventory Supply Clerk 1.00 1.00 1.00 1.00 1.00 Facilities Maintenance Technician 3.00 5.00 5.00 6.00 6.00 Fleet Maint Crewleader 2.00 2.00 2.00 2.00 2.00 Fleet Operations Supervisor 1.00 1.00 1.00 1.00 1.00 Irrigation Specialist 1.00 1.00 1.00 1.00 1.00 Landscape Maint Inspector 2.00 4.00 4.00 4.00 4.00 Lead Fleet Maint Mechanic 3.00 3.00 3.00 3.00 3.00 Lead Public Works Maint Worker 3.00 3.00 3.00 3.00 3.00 Mechanic 3.00 3.00 3.00 3.00 3.00 Pest Control Specialist 1.00 1.00 1.00 1.00 1.00 Public Works Equip Operator 7.00 7.00 7.00 7.00 7.00 Public Works Maint Crewleader 7.00 8.00 8.00 7.00 7.00 Public Works Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00 Public Works Operations Manager 1.00 1.00 1.00 1.00 1.00 Senior Facilities Maintenance Technician 2.00 2.00 2.00 2.00 2.00 Senior Mechanic 6.00 6.00 6.00 6.00 6.00 Senior Public Works Maint Worker 8.00 7.00 7.00 7.00 7.00 Subtotal Maintenance & Operations 58.00 62.00 62.00 62.00 62.00 Accounting Technician 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Aide 1.00 1.00 1.00 1.00 1.00 Field Service Representative 1.00 1.00 2.00 2.00 2.00 Lead Wastewater Worker 3.00 3.00 3.00 3.00 3.00 Lead Water Utility Worker 10.00 10.00 11.00 11.00 11.00 SCADA Technician 1.00 1.00 1.00 1.00 1.00 Senior GIS Analyst 2.00 2.00 2.00 2.00 2.00 Senior Survey Technician 2.00 2.00 2.00 2.00 2.00 Senior Wastewater Pump Technician 1.00 1.00 1.00 1.00 1.00 Senior Water Utility Worker 3.00 3.00 4.00 4.00 4.00 57 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 PUBLIC WORKS (continued) Utilities Superintendent 1.00 1.00 1.00 1.00 1.00 Utilities Technology Supervisor 1.00 1.00 1.00 1.00 1.00 Utility Equipment Operator 9.00 9.00 10.00 10.00 10.00 Utility Field Representative 2.00 2.00 Utility Locator 1.00 1.00 2.00 2.00 2.00 Warehouse Clerk 1.00 1.00 1.00 1.00 1.00 Warehouse Coordinator 1.00 1.00 1.00 1.00 1.00 Wastewater Crewleader 1.00 1.00 1.00 1.00 1.00 Wastewater Pump Technician 1.00 1.00 1.00 1.00 1.00 Wastewater Supervisor 1.00 1.00 1.00 1.00 1.00 Water Conservation Coordinator 1.00 1.00 1.00 1.00 1.00 Water Meter Repair Technician 5.00 5.00 4.00 4.00 4.00 Water Quality Coordinator 1.00 1.00 1.00 1.00 1.00 Water Quality Specialist 3.00 3.00 3.00 3.00 3.00 Water Quality Supervisor 1.00 1.00 1.00 1.00 1.00 Water Utility Crew Leader 4.00 4.00 4.00 4.00 4.00 Water Utility Supervisor 1.00 1.00 1.00 1.00 1.00 Water Utility Worker 25.00 25.00 25.00 25.00 25.00 Subtotal Utilities 86.00 86.00 88.00 88.00 88.00 Principal Civil Engineer 1.00 1.00 1.00 1.00 1.00 Senior Public Works Maint Worker 2.00 2.00 3.00 3.00 3.00 Senior Traffic Engineer 2.00 2.00 2.00 2.00 2.00 Traffic and Transportation Manager 1.00 1.00 1.00 1.00 1.00 Traffic Engineering Technician 1.00 1.00 1.00 1.00 1.00 Traffic Signal Electrician 2.00 2.00 2.00 2.00 2.00 Traffic Signals Crewleader 1.00 1.00 1.00 1.00 1.00 Subtotal Transportation 10.00 10.00 11.00 11.00 11.00 Assistant Civil Engineer 2.00 2.00 2.00 2.00 2.00 Assistant Engineer 1.00 1.00 1.00 1.00 1.00 Associate Civil Engineer 1.00 1.00 1.00 1.00 1.00 Capital Projects Administrator 3.00 6.00 7.00 7.00 7.00 City Engineer 1.00 1.00 1.00 1.00 1.00 58 FY 2020/21 FY 2021/22 FY 2022/23 FY 2022/23 FY 2023/24 Actual Actual Adopted Revised Proposed City of Huntington Beach FY 2023/24 Authorized Full-Time Equivalent Personnel All Funds EXHIBIT DATTACHMENT 2 PUBLIC WORKS (continued) Construction Inspector II 1.00 1.00 1.00 Construction Manager 1.00 1.00 1.00 1.00 1.00 Environmental Services Manager 1.00 1.00 1.00 1.00 1.00 Environmental Specialist 2.00 2.00 2.00 2.00 2.00 Park Development Project Coordinator 1.00 Principal Civil Engineer 3.00 3.00 3.00 3.00 3.00 Senior Civil Engineer 5.00 5.00 5.00 5.00 5.00 Senior Construction Inspector 3.00 3.00 3.00 4.00 4.00 Senior Engineering Technician 1.00 1.00 1.00 1.00 1.00 Subtotal Engineering 26.00 28.00 29.00 29.00 29.00 Total - Public Works 199.00 207.00 211.00 211.00 211.00 GRAND TOTAL 958.25 980.75 989.75 991.75 1,002.75 NOTES: S Sworn Public Safety position ^ There are 12 defunded positions included in the FTE count as follows: (2) Administrative Fire Captain (9) Police Officer (1) Communications Operator-PD 1 Position to support increased caseload 2 Two additional positions (Advisory and Litigation) to assist with increased caseload and demand for services 3 Position to provide additional support for the City Attorney's Office 4 New position to facilitate centralization of record keeping, including oversight of the Records Division within the City Clerk's Office 7 Two positions added to mitigate backlog and provide more timely inspections 8 Position added to meet demand for plan check services and bring part of contracted consulting work in-house 9 Position assigned to Risk Management to support inceased workload, mitigate risk and ensure compliance with regulatory requirements 10 Position exchange to better meet the administrative and leadership needs of the Information Services Department. 5 New position to assist with citywide public information materials in the Office of Communications and the City’s Cable “3” Channel, bringing part of contracted services in-house 6 New position to oversee the operations of the City’s Cable “3” Channel, YouTube Channel, and online digital content, bringing part of contracted services in-house 59 ATTACHMENT 3 Department Description Amount City Attorney Legal related professional services.$342,865 City Clerk General Consulting services as it relates to Records Retention such as City Attorney approved legal counsel, annual review and update of the Retention Schedule, new legislation and other professional services.$1,000 City Manager Professional services include state and federal legislative and lobby services, management/organizational assessment & efficiency studies and other consulting services related to business development/management, leadership and strategic planning, financial consulting/economic analysis, feasibility studies, real estate services (including but not limited to appraisals, right-of-way services, acquistions, title reporting, etc.), City Attorney approved legal services and regulatory agency compliance, communications, public information and public affairs, marketing, website, social media and stakeholder engagement, graphic design services, graphic facilitator/facilitation services, event planning and coordination, data management/dashboard services, planning services, parking consulting, site selection services and related economic development professional services, homeless services, CDBG/HOME related consulting, health and human services, environmental and sustainability master plan development consulting and professional services related to energy efficiency and other citywide sustainability efforts, educational, language, and accessibility related services, security services, human relations, mediation, and negotiation services, print services and other administrative and professional services related to the functions of municipal governance, performance and financial audits, customer service training, 311 comprehensive systems related services and biennial Quality of Life Community Survey. $630,000 Community Development Services including planning and technical services, inspection services, plan check services, code enforcement servces, financial consulting/economic analysis, City Attorney approved legal services, real estate services (including but not limited to appraisals, right-of-way services, acquisitions, title reporting, etc.), parking consulting, engineering services, homeless services, CDBG/HOME consulting, housing inspection services, related housing services, administrative services, website services, site selection services and related economic development professional services. $2,460,429 Community & Library Services Services including professional design, environmental services, architectural engineering services, master plan services, 4th of July Celebration Event Coordination, consulting/public relations services, training services for staff/community volunteers including meeting planning and live graphic services and other related professional services as needed. $186,822 Finance Services including professional services audits, sales tax auditing, property tax auditing, financial consulting and other related professional services.$234,871 Fire Services include fire and development plan check and inspection services, environmental and soils consulting, hazardous materials, inspections of City businesses as part of the CUPA program, oil production inspections, evaluation of oil production systems, testing and document preparation, evaluation of emergency services, paramedic/ambulance service billing, physical examinations and pulmonary consulting for personnel, employment background and other investigative services, psychological testing, psychological counseling services and peer support training services, quality improvement and educator services, annual fire policy, standard standard policy cross-reference, and related policy services, assessment of fire facilities, accreditation related standards of cover study and strategic planning, community risk assessment and facility assesment, provision of cost report processing for GEMT reimbursement, consulting services for the Huntington Harbor Review, project management for oil well abandonment, as-needed general environmental engineering services, petroleum engineering consulting services, spill prevention control and countermeasure plan, professional services related to approved CIP projects and other related professional services. $649,629 Human Resources Professional services include City Attorney approved legal, recruitment, medical professional, labor consulting, investigation, training, disability, human relations, mediation, and negotiation services, management/organizational assessment & efficiency studies and other consulting services related to management, leadership and strategic planning and other professional services. $2,309,000 Information Services Services include consulting and other professional services related to access control security, phone support servces, workshops for business intelligence, infrastructure systems services, public safety systems and applications and database support services and other professional services. $22,988 Police Services include medical exams (sexual and rape, employment, hazmat physical exam, SWAT physicals and flight crew physicals), backround investigations, psychological exams, ploygraph services, phlebotomy services, crime prevention programs, child abuse services, gang prevention, trauma support intervention/employee wellness program, video redaction services, City Attorney approved legal services and other related professional services. $277,743 Public Works Services include engineering/design, engineering studies, inspection/construction management, development review, SCADA and related automation support, water quality testing/sampling/analysis, engineering/technical support, City Attorney approved litigation/legal services, water conservation support services, water quality testing support services, NPDES/FOG inspection services, utility rate studies and financial analysis, billing/cashiering system support, professional arborist services, traffic studies, special training services, wildlife biologist services, solid waste consultanting services, environmental consulting and support, asset management system consulting, land surveying services, safety training/consulting, security consulting, emergency preparedness consulting, materials testing, labor compliance/certified payroll services, mobility studies, sustainability studies, water loss analysis, on-site chlorine generation feasibility and design and other related professional services. $3,843,700 Non-Departmental Services including claims review, City Attorney approved litigation and legal services, auditing, recruitment services, appraisal services, economic analysis, housing compliance services, homeless services, health and human services, and other related professional services. $4,197,669 Total Professional Services $15,156,716 Citywide (All Funds) CITY OF HUNTINGTON BEACH PROFESSIONAL SERVICES FISCAL YEAR 2023/24 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 Resolution No. 2023-26Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the areaencompassed by the City ofHuntington Beach, as follows:A. EDUCATIONAL GROUP E OCCUPANCIES :Educational Group E occupancies are generally those public and private schools, used bymore than six persons at any one time for educational purposes through the 12th grade. Withinthe City ofHuntington Beach, there lie thirty-eight (38) Group E occupancies, buildings, structuresand/or facilities.During calendar year 2022, the Huntington Beach Fire Department completed the annualinspection ofthirty-eight (38) Group E occupancies, buildings, structures and/or facilities. This isa compliance rate of 1 00 % for this reporting period.Additional items of note regarding this compliance rate can be found in the accompanyingstaff report for this resolution.B. RESIDENTIAL GROUP R OCCUPANCIES:Residential Group R occupancies, for the purposes of this resolution, are generally thoseoccupancies containing sleeping units, and include hotels, motels, apartments (three units or more),etc. as well as other residential occupancies (including a number of residential care facilities).These residential care facilities have a number of different sub-classifications, and they maycontain residents or clients that have a range of needs, including those related to custodial care,mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory orbedridden. Within the City ofHuntington Beach, there lie twenty-three (23) Rl, two thousandfive hundred thirty-eight (2,538) Group R2, five (5) R2.1 and one (1) R4 occupancies of this nature.During calendar year 2022, the Huntington Beach Fire Department completed the annualinspection of all Rl, R2.1 and R4 occupancies, buildings, structures and/or facilities. The78 79 CY2022 Staff SummarySB 1205: Fire Protection Services: Inspections: Compliance ReportingThe State legislature requires the chief of every fire department to conduct annual inspections onall public or private schools, hotel, motel, lodging house, apartment house, and certain residentialcare facilities (Health and Safety Code 13146.3, 13146.2, 17921 (b)).Beginning on January 1, 2019, every fire department must report on these State mandated annualinspections (Health and Safety Code 13146.4, Added by Stats. 2018, Ch. 854, Sec. 1. (SB 1205)Effective January 1, 2019). This report must be in the form of a resolution or other formaldocument.Definitions of key terms:R1 - Residential occupancies with transient (<30 days) occupants• Boarding houses (transient) no more than 10 occupants• Congregate residents (transient) no more than 10 occupants• Hotels, motelsR2 - Residential - Residential occupancies containing sleeping units or more than twodwelling units where the occupants are primarily permanent in nature, including apartmentsR2.1 - 24-hour living facilities may contain >6 non-ambulatory and/or bedridden clients.• Assisted living facilities such as residential care facilities, residential care facilities forthe elderly (RCFEs), adult residential facilities, group homes, etc.• Social rehabilitation facilities such as halfway houses, community correctional centers,community treatment programs, alcoholism or drug abuse recovery or treatmentR4 - 24-hour living facilities more than six ambulatory clients, but not more than 16 persons;maximum of six non-ambulatory or bedridden clients• Assisted living facilities such as residential care facilities, residential care facilities forthe elderly (RCFEs), adult residential facilities, group homes, etc.• Social rehabilitation facilities such as halfway houses, community correctional centers,community treatment programs, alcoholism or drug abuse recovery or treatmentE - Facilities used for educational purposes through the 1 2th grade. For purposes of reporting,the data presented does not include occupancies designated as Es that are day cares or thatare facilities located in Es (e.g., YMCA after school care).ProceduresIn order to meet this mandate, the Community Risk Reduction Division assigns annual inspectionsto Community Risk Reduction staff and to Fire Companies. Inspections are logged into the Accelarecords management system. In 2022, all R1, R2, R2.1, R4, and Es were inspected.80 DatapccupancyTypeR1s ("hotel, motel, lodging houses")R1s that are also High RisesR2s ("apartment houses")R2 that are also High RisesR2.1 ("supervised residential")R4s ("residential/assisted living")Es ("public and private schools")I SinJurisdiction2032,53715L.^.... \38# ofInspections2032,5371513881 ATTACHMENT 1 - DATA LISTList of 2,538 R2 (multi-family) is available upon request.Rl11/23/202112/22/202111/26/202111/4/202111/5/202111/22/20217/2/202111/9/202111/12/202111/12/202111/12/202111/12/202111/10/202111/19/202112/12/202111/12/202111/12/20219/27/202111/16/202111/12/2021High Rises11/3/202112/15/202112/2/2021FMF-003189FMF-023343FMF-023347FMF-023348FMF-023350FMF-023351FMF-023352FMF-023353FMF-023354FMF-023355FMF-023356FMF-023357FMF-023358FMF-023359FMF-023360FMF-023361FMF-023362FMF-023363FMF-023364FMF-023470FMF-000408FMF-006768FMF-017682[RD 4014] HUNTINGTON SURF MOTEL[RD 3416] Navigation Center[RD 3716] **BEST WESTERNREGENCY INN**[RD3516]STARLIGHTINN[RD 3115] COMFORT SUITES HOTEL[RD 3516] BEACH INN MOTEL[RD 4013] SUN & SANDS MOTEL[RD 3715] HUNTINGTON SUITESMOTEL[RD 3206] BEST WESTERN HARBOURINN AND SUITESTRAVELODGE OCEANFRONTOCEAN SURF INN AND SUITES[RD 3105] SURF CITY INN[RD 3115] SPRINGHILL SUITESMARRIOTT[RD 3015] HOTEL EUROPA[RD 2810] EXTENDED STAY AMERICA#494[RD 3105] 777 MOTOR INN[RD 3105] OCEAN VIEW MOTEL[RD 4115] HYATT REGENCYHUNTINGTON BEACH RESORTSHOREBREAK HOTEL AT THESTRANDSUNSET SUITES[RD 3015] HOTEL HUNTINGTONBEACH[RD 4115] WATERFRONT HILTONBEACH RESORT[RD 4115] PASEA HOTEL & SPA720 PACIFIC COAST HWY MF17631 CameronLn19360 Beach Blvd18382 BEACH BLVD16301 BEACH BLVD18112 BEACH BLVD1102 PACIFIC COAST HWY7971 YORKTOWN AVE16912 PACIFIC COAST HWY17205 PACIFIC COAST HWY16555 PACIFIC COAST HWY16220 PACIFIC COAST HWY7872 EDINGER AVE7561 CENTER AVE 465050 SKYLAB RD16240 PACIFIC COAST HWY16196 PACIFIC COAST HWY21500 PACIFIC COAST HWY500 PACIFIC COAST HWY16401 PACIFIC COAST HWY7667 Center Ave MF21100 Pacific Coast Hwy21080 Pacific Coast Hwy MFR2.18/25/20216/14/202111/12/20215/19/202111/8/2021FMF-006201FMF-023471FMF-001407FMF-020256FMF-008072[RD 3314] MERRILL GARDENSRETIREMENT HOME[RD 3615] BEACH CITY SENIOR LIVING^LLC DBA SEA CLIFF ASSISTED LIVING[RD 3615] HUNTINGTON TERRACE MBKSENIOR LIVINGOAKMONT SR LIVING APARTMENTS[RD 3714] SUNRISE ASSISTED LIVING17200 GOLDENWEST ST MF18851 Florida St18800 FLORIDA ST MF18922 Delaware St MF7401 YORKTOWN AVE MF82 R410/7/2021FMF-023416[RD 3414]HB YOUTHSHELTER/WAYFINDERS7291 TALBERT AVE9/21/20219/28/20219/21/20219/23/20219/28/20219/27/202110/7/202110/13/202110/12/202110/4/20219/29/202110/7/202111/30/202111/4/202111/2/202110/13/202111/16/202112/15/202110/28/202111/17/202112/21/202112/6/202111/29/202111/2/20219/29/202110/21/202111/1/202112/1/202111/15/202110/19/202110/14/202110/5/20219/22/202111/2/2021FMF-023435FMF-023437FMF-023438FMF-023439FMF-023449FMF-023450FMF-023453FMF-023454FMF-023455FMF-023456FMF-023466FMF-023468FMF-023433FMF-023434FMF-023441FMF-023442FMF-023444FMF-023445FMF-023446FMF-023447FMF-023448FMF-023458FMF-023465FEO-003311FMF-023431FMF-023432FMF-023457FMF-023460FMF-023436FMF-023452FMF-023459FMF-023451FMF-023464FMF-023461LIBERTY CHRISTIAN SCHOOL[RD 3212] SPRING VIEW MIDDLE SCHOOL[RD 2812] CLEGG ELEMENTARY SCHOOLSTACEY MIDDLE SCHOOL[RD 3012] CIRCLE VIEW ELEMENTARY SCHOOL[RD 3115] VISTA VIEW MIDDLE SCHOOL INfERil\/TCAMPUS[RD 3315] OAK VIEW SCHOOL[RD 3314] OCEAN VIEW HIGH SCHOOL[RD 2712] HEBREW ACADEMY SCHOOL[RD 3113] COLLEGE VIEW ELEMENTARYSCHOOL[RD 3313] GOLDEN VIEW SCHOOLST BONAVENTURE SCHOOL[RD 4016] JOHN R PETERSON ELEMENTARYSCHOOL[RD 4019] HUNTINGTON CHRISTIAN SCHOOL[RD 4118] EDISON HIGH SCHOOL[RD 4218] EADER SCHOOL K-5[RD 3917] S A MOFFETT ELEMENTARY SCHOOL[RD 3918] SAINTS SIMON &JUDE SCHOOL"[RD 3919] HAWES ELEMENTARY SCHOOL[RALPH E.][RD 3820] PEGASUS SCHOOL[RD 3819] OKASCHOOL[RD 3718] TALBERT MIDDLE SCHOOL[RD 3817] NEWLAND SCHOOL[RD 4118] EDISON HIGH SCHOOL[RD 3413] MESA VIEW MIDDLE SCHOOL[RD 3613] SEACLIFF ELEMENTARY SCHOOL[RD 3914] AGNES L SMITH ELEMENTARY"SCHOOL[RD 3412] HOPEVIEW ELEMENTARY SCHOOL[RD 3311] MARINE VIEW MIDDLE SCHOOL[RD 3208] HARBOUR VIEW ELEMENTARYSCHOOL[RD 3011] MARINA HIGH SCHOOL[RD 3316] LAKE VIEW SCHOOLSCHROEDER ELEMENTARY SCHOOL[RD 3111] GARDEN CONSERVATORYELEMENTARY/PRESCHOOL7661 WARMER AVE A16662TRUDYLN6311 LARCHWOODDR6311 LARCHWOOD6261 HOOKER DR7721 JULIETTE LOW DR17241 OAK LN17071 GOTHARDST14401 WILLOW LN6582 LENNOX DR17251 GOLDEN VIEW Ln16390SPRINGDALEST20661 FARNSWORTH LN9700 LEVEE DR21400 MAGNOLIA ST9291 BANNING AVE8800 BURLCREST DR20400 MAGNOLIA ST9682 YELLOWSTONE DR19692LEXINGTONLN9800 YORKTOWN AVE9101 BRABHAM DR8787 DOLPHIN DR21400 MAGNOLIA ST17601AVILLALN6701 GARFIELDAVE77017THST17622FLINTSTONELN5682 TILBURG DR4343 PICKWICK CIR15871 SPRINGDALEST17451 ZEIDERLN15151 COLUMBIA LN5702 CLARK DR83 11/2/202111/1/202111/12/202110/28/2021FMF-023462FMF-023463FMF-023469FMF-023440[RD 3111] MONTESSORt CHILD DEVELOPMENTCENTER[RD 3110] VILLAGE VIEW ELEMENTARY SCHOOLLEPORT SCHOOL & CHILDRENS CENTER[RD 3109] GRACE LUTHERAN SCHOOL5702 CLARK DR5361 SISSON DR16081 WAIKIKI LN5172MCFADDENAVE84 85 86 87 88 89 90 91 92 93 94 95 96 23-12958/310598 8 of 12 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: TO CITY: TO CONSULTANT: City of Huntington Beach ATTN: Dir. of Community Development 2000 Main Street Huntington Beach, CA 92648 National Development Council ATTN: Andria Martinez 633 Third Avenue, Suite 19J New York, NY 10017 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. 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 REVENUE OPPORTUNITIES No.Revenue Generating Service Description Type Dept Amount 1 Update the Master Fee and Charges Schedule Prepare an updated fee study (last completed in 2016) to determine updated full cost recovery amounts and evaluate fees for increase.Ongoing All 198,000 2 Evaluate Emergency Medical Service (EMS) Fees Update the EMS fee study (last completed in 2021) to determine current full cost recovery amounts and evaluate fees for increase.Ongoing Fire 936,254 3 Lifeguard Tower Advertisements Develop a process to begin selling advertisement space on the City's 24 lifeguard towers.Ongoing Fire 356,441 4 Police Fines and Fees Update various Police Department fines and fees Ongoing Police 60,000 5 LPR (License Plate Readers) Citation Revenue Each Scofflaw vehicle generates a minimum of $420 per vehicle. This program is anticipated to go-live in July 2023.Ongoing Comm & Lib Svcs 102,600 Total 1,653,295 BUDGET REDUCTIONS No.Cost Reductions Service Level Impacts Type Dept Amount 1 Partial reprogramming of one-time revenues from Emerald Cove loan repayment Reallocate one-half of Emerald Cove loan repayment revenue allocated to the Section 115 trust to one-time expenditures.One-time Citywide 1,138,297 2 Employee Work Enhancements Holiday Closure, Telework options, 4/10 schedule with Friday City Hall closure Ongoing Citywide 712,000 3 Circuit Eliminate Circuit transport program Ongoing Citywide 350,000 4 Eliminate City Clerk Remodel CIP Office space for Municipal Records Manager One-time City Clerk 100,000 5 Reclassify Director of Homeless & Behavioral Health position to Manager. Assistant City Manager and HBPD Homeless Task Force Lieutenant will need to provide greater oversight of the City's homeless program. Ongoing City Mgr 57,519 6 Employee Medical Exams Update protocols for pre-employment medical exams to better align with neighboring cities.Ongoing HR 35,000 7 Eliminate funding for MySidewalk dashboard program Insufficient IS personnel are available to support this project based on current staffing levels. Ongoing Info Svcs 80,000 8 Eliminate IS Service Van Replacement cost savings would be partially offset by increased maintenance expenditures. An old van could impact IS’ ability to deliver large equipment to satellite sites for special events and as needed services.One-time Info Svcs 60,000 LEVEL 1 - Effective July 1, 2023 123 BUDGET REDUCTIONS Continued No.Cost Reductions Service Level Impacts Type Dept Amount 9 Reduce Equipment Replacement Slated for camera and access control upkeep. This will hamper IS’ ability to modernize the CCTV cameras and security access system throughout the city and City facilities.One-time Info Svcs 300,000 10 Terminate Ice Rink Contract (if single sponsor does not materialize by date) Terminate Year 3 of Ice America contract for rink at Pier Plaza during the 2023 holiday season. Potential impacts to both downtown off-peak season businesses and parking revenues. The ice rink attracts approximately 15,000 skaters each season.Ongoing Comm & Lib Svcs 157,594 11 Aquatics Summer Swim Lesson Expansion Eliminate funding for expanded summer schedule of swim lessons. This program was last active in 2019 and served an average of 700+ participants. Includes expansion of swim lessons to Marina and Edison High School pools. Ongoing Comm & Lib Svcs 138,950 12 Eliminate a portion of the temporary salaries budget in the Housing and Permit Center Divisions and shift restricted fund grant work to the Senior Management Analyst Transition CDBG/HOME grant and permit from the two retired annuitants in the Housing Division to existing staff. Shift costs for 85% of 1.0 Senior Management Analyst from the General Fund to restricted funds (CDBG and HOME).Ongoing Comm Dev 203,739 13 Code Enforcement Replacement Vehicles - downgrade three vehicle replacement upgrades from trucks to sedans Downgrade code enforcement vehicles budgeted for replacement with trucks to sedans for both one-time and ongoing savings related to purchase and maintenance. One-time/ Ongoing Comm Dev 60,000 Total 3,393,099 LEVEL 1 - Effective July 1, 2023 124 BUDGET REDUCTIONS No.Cost Reductions Service Level Impacts Type Dept Amount 1 Eliminate Temporary Dept Asst II Reassignment of duties impacting minute preparation Ongoing City Clerk 23,050 2 Reclassify Multimedia Officer to Multimedia Coordinator This new classification will have no direct supervisory responsibilities for this new position. Public Affairs Manager will be required to provide more oversight and supervision for the HBTV operation. Ongoing City Mgr 31,091 3 Reduce Professional/Contract Services by eliminating contingency and reducing SOW (CMO) Reduces capacity to plan and implement various CMO and City Council's priorities; reduces flexibility to hire additional consultants for unexpected needs throughout the year.Ongoing City Mgr 30,000 4 Principal Finance Analyst (Budget) - Defund (1) Loss of this position would result in decreased accuracy of revenue and expenditure projections. The budget team also provides labor costing for negotiations and oversight of the purchasing division, including final approval of 4,600 purchase orders annually. Removing this position would significantly hinder the ability to provide these services on a timely basis.Ongoing Finance 143,253 5 Call Center Part-time Staff The Call Center handles approximately 200 calls weekly, directing callers to the correct department and providing information about City services and events. Elimination of this program would decrease customer service levels to the public.Ongoing Finance 35,000 6 Reduce various Public Works contract and maintenance budgets. Delayed CIP project delivery, higher long-term costs and increased liability exposure and unbudgeted, emergency replacement/repairs.Ongoing Public Works 46,700 7 Revise tree trimming from 6-year to 7-year cycle Increased potential liability due to fallen tree branches. 3-5 year cycle is recommended as a best practice.Ongoing Public Works 100,000 8 Reduce contract and weekly landscape service for Facilities to 2x per month. Reduced aesthetic to City Facilities, potential increase in weed and vectors Ongoing Public Works 123,882 9 Gate Arm Efficiency Savings - Temp Salaries Partial savings due to efficiencies received from automatic exit gate installed at the Main Promenade Parking Structure. Potential longer lines for users with a parking pass or paying with cash.Ongoing Comm & Lib Svcs 42,000 LEVEL 2 - Effective January 1, 2024 125 BUDGET REDUCTIONS Continued No.Cost Reductions Service Level Impacts Type Dept Amount 10 Eliminate Citywide Security Services Patrol covers 14-16 locations per shift throughout the city seeking compliance on loitering, graffiti, abandoned property, suspicious activities, homeless issues, vandalism, smoking/drinking in public facilities, providing on-call security to staff during working hours, and locking restrooms.Ongoing Comm & Lib Svcs 147,692 11 Eliminate Park Ranger Services Patrol seeks compliance on issues such as dogs off leash, illegal camping, feeding wildlife, climbing trees, drinking/smoking, homeless issues, motorized vehicles/toys in park. The contracted citywide and Central Park patrol reduces the need for HB Police to respond to low-level crimes. During the 1st year of the contract, 3,250 public encounters were reported (off-leash dogs - 1,452, graffiti/vandalism - 752, and other incidents - 1,046)Ongoing Comm & Lib Svcs 78,075 12 Senior Center - Saturday Closure Close the Sr Center on Saturdays (8 am - 12 noon) impacting our community's older adults. Closure will significantly impact the Fitness Center membership with approximately 65 check-ins per Saturday. Monday-Friday daily attendance is 500/day for the Fitness Center and all other Center activities. Hours are 8am - 7pm Monday-Thursday, and 8am - 5pm Friday.Ongoing Comm & Lib Svcs 14,450 13 Edison/Murdy -5 hr less/week Close one hour earlier Monday - Friday. This will result in the restrooms being closed one hour earlier and staff not being present to reserve fields and/or courts, or answer public inquiries for services. Ongoing Comm & Lib Svcs 17,000 14 Closure - Central Library (Sundays) A Sunday closure would impact the 47,939 Central Library patrons as reported in FY 22/23. Ongoing Comm & Lib Svcs 150,000 LEVEL 2 - Effective January 1, 2024 126 BUDGET REDUCTIONS Continued No.Cost Reductions Service Level Impacts Type Dept Amount 15 Reduction in Open Hours - Central Library (reduce Monday by 2 hrs; Tuesday-Thursday by 3 hrs = 11 hrs/week) Evening hours are often used by community members studying or looking for a quiet place to read or work. The number of visits in the 7-9 pm range average 25,000 for the year. However, the number of people exiting the building at closing, is nearly 2x as many (45,000) indicating many more people entered prior to 7 pm and stayed until 9 pm. Reduced morning hours would impact the Story Time program. Story Times are hosted Tuesday – Friday, and are always at capacity. Tuesday/Thursday 140 people attend baby story time on Wednesday hosts 50 people.Ongoing Comm & Lib Svcs 83,071 16 Community Café Community Forum (costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in-kind) Eliminate all events for this community dialogue on a variety of issues (8 annually) affecting an average of 60 attendees per event. $22,500 is for professional services contracts for meetings and live graphic services. The balance of $12,500 is for supplies ($2,000)/food ($4,500)/materials ($6,000). Ongoing Comm & Lib Svcs 35,000 17 Reduce Temporary Salaries, Overtime, Equipment budget in Inspection Services and Administration Reduce temporary salaries and overtime budget to align with historical expenditure levels. May reduce response time to the public depending on demand.Ongoing Comm Dev 123,295 18 Accounting Technician (Accounts Payable) - Defund (1) Currently, two-person Accounts Payable team processes approximately 41,369 invoices annually. Elimination of this position would result in a reduced number of invoices paid on a weekly basis due to loss of personnel. The City may also be subject to late fees if invoices are not able to be processed timely.Ongoing Finance 94,998 19 Reduce beach restroom cleaning intervals during non-peak season months Reducing services will result in compounding cleaning needs long- term. Poorly maintained restrooms attract graffiti and may encourage poor behavior. May prompt unbudgeted requests for major cleaning, graffiti removal, and/or repairs.Ongoing Public Works 100,000 20 Reduce contract sign & lighting maintenance services and related equipment funding Higher long-term costs and increased liability exposure and unbudgeted, emergency replacement/repairs.Ongoing Public Works 62,000 LEVEL 2 - Effective January 1, 2024 127 BUDGET REDUCTIONS Continued No.Cost Reductions Service Level Impacts Type Dept Amount 21 Eliminate City funded downtown power washing and porter service and transfer costs to the Downtown BID Downtown BID to pay for power washing and porter service, potential impacts to HB desirability as tourist destination. Reduction of service levels may impact bottom line of Downtown businesses.Ongoing Public Works 154,000 22 Reduce contract and weekly landscape service to Pier Plaza, Bluff Top, & Sunset landscape 2x per month Reduced aesthetic and desirability as tourist destination, potential increase in weed and vectors. Reduction of service levels at these key locations may impact Special Events and their desire to bring business to HB in the future.Ongoing Public Works 69,000 23 Defund 1 Care Manager 25% reduction in Care Management Services; 18% reduction in Home Delivered Meals Services Ongoing Comm & Lib Svcs 24,550 24 Closure - Banning Branch In FY 22-23 YTD, the Banning Branch Library saw 11,830 visitors and approximately 26,000 items checked out. Ongoing Comm & Lib Svcs 63,543 25 Closure - Main Street Branch Does not include elimination of full-time Librarian I. That employee would be transferred to Central Library. In FY 22-23 YTD, the Main St Branch Library saw 17,869 visitors.Ongoing Comm & Lib Svcs 66,883 26 Closure - Helen Murphy Branch In FY 22-23 YTD, the Helen Murphy Branch Library saw 4,845 visitors.Ongoing Comm & Lib Svcs 36,140 27 Code Enforcement Technician - Defund (1) Loss of this position would result in decreased code enforcement services and loss of revenues from code enforcement activities. By not filling this position, typical response times for Priority Level 3 category complaints will move from up to 15 days to up to 20 days. Further, if after inspection a violation is confirmed, it will take longer to get the issue resolved since code enforcement’s ability to communicate and follow up will diminish. Ongoing Comm Dev 85,933 LEVEL 2 - Effective January 1, 2024 128 BUDGET REDUCTIONS Continued No.Cost Reductions Service Level Impacts Type Dept Amount 28 Economic Development Project Manager - Defund (1) Loss of this position would result in fewer staff available to attract and retain businesses into the City. The ED Project Manager was responsible for preparing and posting agendas for the EDC, attending BID meetings, assisting with real estate accounts receivable, contract management (auto electronic reader board agreement, various sales tax sharing agreements, the auto parking incentive agreement, etc.). By not filling the ED Project Manager position, the ED Manager will have to absorb this workload which will leave no capacity for business visits or to undertake new economic development initiatives.Ongoing Comm Dev 152,520 Total 2,133,126 LEVEL 2 - Effective January 1, 2024 129 Summary Proposed Revenue Opportunities 1,653,295 Expenditure Reductions (One-Time)1,643,297 Expenditure Reductions (Ongoing)3,882,928 7,179,520 Department Reductions and Revenue Opportunities Proposed City Manager 118,610 City Attorney - City Clerk 123,050 Community & Library Services 1,157,548 Finance 273,251 Fire 1,292,695 Human Resources 35,000 Information Services 440,000 Community Development 625,487 Police 60,000 Public Works 655,582 City Treasurer - Citywide 2,398,297 7,179,520 SUMMARY OF BUDGET BALANCING PLAN 130 City of Huntington BeachFY 2023/24 Budget AdoptionCity Council Public HearingJune 6, 20231131 Presentation Overview•Proposed FY 2023/24 General Fund Budget Review•Proposed FY 2023/24 Capital Improvement Budget •FY 2023/24 Budget Approval•Budget Balancing Plan2132 Proposed FY 2023/24 General Fund Budget Review3133 FY 2023/24 General Fund Proposed Budget Review•Proposed FY 2023/24 General Fund Budget is structurally balanced, with a projected $1.7M surplus after including the impacts of the approved POA MOU and parking revenues4* GF portion of Emerald Cove settlement, of which 50% is being transferred to the Section 115 Trust and 50% is being transferred to the General Liabilities Fund** Includes Debt Service, Capital Expenditures, and Transfers•Continued Infrastructure Investments in FY2023/24 General Fund transfer to the Infrastructure Fund increased by 11% to $15.0MCIP budget totals $41.2M (decrease from prior year due to $12.9M of HB Recovery projects and a $6.6M grant for Heil Pump Station in FY 2022/23)General Fund (Fund 100)(in thousands)ProposedFY 23/24Revenues (recurring) $280,790Revenues (one‐time) *2,276Planned Use of Reserves (one‐time) 8,804Total Revenues 291,870Personnel Costs 186,231Operating Costs 55,315Non‐Operating Costs ** 48,664Total Expenditures 290,210Surplus / (Deficit) $1,660134 FY 2023/24 General Fund Proposed Revenues - $283.1M5General Fund recurring revenues anticipated to increase by $7.5 million from FY 2022/23Property Tax36.8%Sales Tax18.9%Franchises4.2%Transient Occupancy Tax5.9%Utility Users Tax7.5%License & Permits3.2%Fines & Forfeitures1.8%Use of Money & Property7.7%Revenue from Other Agencies1.0%Charges for Current Services11.6%Other Revenue0.6%Non‐Operating Revenue1.0%135 FY 2023/24 General Fund Proposed Expenditures - $290.2M* Transfers include Infrastructure, Equipment, General Liability & Section 115 Trust Transfers** Other includes City Council, City Clerk, and City Treasurer6Personnel64.2%Operating19.0%Debt Service2.1%Transfers *14.7%BY CATEGORYCity Attorney1.3%City Manager1.4%Finance1.9%Fire19.5%Human Resources0.9%Information Services2.8%Other **1.2%Community & Library Services5.5%Non‐Departmental22.6%Community Development3.8%Police30.7%Public Works8.3%BY DEPARTMENT136 Recommended FY 2023/24 Authorized Positions•Staff is proposing 11 new General Fund positions in the FY 2023/24 Budget:City Attorney’s Office‒(1) Deputy Community Prosecutor to support increased caseload ($162K)‒(2) Senior Deputy City Attorneys (Advisory and Litigation) to assist with increased caseload and demand for services ($408K)‒(1) Senior Legal Assistant to provide additional support for the City Attorney’s Office ($117K)City Clerk Department‒(1) Municipal Records Manager to facilitate centralization of record keeping, including oversight of the Records Division within the City Clerk’s Office ($149K)7137 Recommended FY 2023/24 Authorized Positions•Staff is proposing 11 new General Fund positions in the FY 2023/24 Budget:City Manager Department‒(1) Graphic Designer to assist with citywide public information materials in the Office of Communications and the City’s Cable “3” Channel ($94K)‒(1) Multi-Media Officer to oversee operations of the City’s Cable “3” Channel, YouTube Channel, livestreaming, and all digital content ($175K)‒Adding the two positions and bringing a portion of the contracted services in-house results in a cost increase of $43,870, while allowing for a more nimble and responsive Office that is more capable of meeting the City’s goals of keeping our community informed.8.FY 2022/23 FY 2023/24 FY 2023/24($100K ‐ Expanded SOW including the Mayor's Initiatives)Prof Contract Services ‐ PIO$85,000 $101,750$201,750Prof Contract Services ‐ HBTV 370,000 128,250128,250Personnel Cost ‐ Graphic Designer93,80593,805Personnel Cost ‐ Multi‐Media Officer175,065175,065Total$455,000 $498,870$598,870138 Recommended FY 2023/24 Authorized Positions•Staff is proposing 11 new General Fund positions in the FY 2023/24 Budget:Community Development Department‒(2) Combination Inspectors ($231K) to mitigate backlog, provide more timely inspections, and bring part of contracted consulting work in-house, resulting in annual savings of $132,978‒(1) Plan Check Engineer ($158K) to meet demand for plan check services and bring part of contracted consulting work in-house, resulting in annual savings of $79,424‒Requested positions will minimize reliance on consultants to meet base level demand for services, while saving a total of $212,402 annually‒Consultants will still be utilized to meet requests for services above base levels and maintain service levels during cyclical peaksHuman Resources‒(1) Human Resources Analyst in the Risk Management Division to support increased workload, mitigate risk and ensure compliance with regulatory requirements ($118K)9139 General Fund Reserve Policy10•The City desires to maintain a prudent level of reserves based on the revenue impacts described above and the City's desire to maintain strong bond ratings to minimize borrowing costs. •The Government Finance Officers Association (GFOA) recommends a minimum of two months of operating expenditures be set aside for unforeseen events. •Staff is recommending consolidating certain General Fund Assignments into the Economic Uncertainties Reserve in order to meet the two‐month reserve requirement.140 General Fund Reserve Policy (continued)11•Additional adjustments to the General Fund Reserve Policy are listed as follows: •A minimum of 25% of unrestricted one‐time revenues to be transferred to the Section 115 Trust.•Additionally, staff is recommending strengthening the City’s Reserve policy to ensure that funds are set aside systematically and used only when truly necessary and approved by a 6/7thvote of City Council.•If Economic Uncertainties Funds are utilized and the level falls below the two‐month reserve requirement, the Chief Financial Officer will bring forward a proposed plan to City Council to replenish the fund within three fiscal years.•Cities with robust fiscal reserve policies are more likely to receive improved bond ratings based on higher scores related to financial management policies and improved fund balance reserves.141 FY 2023/2024 Capital Improvement Program (CIP)142 FY 2023/24 CIP BUDGET•CIP Budget Totals $41.2 M ($25M 3 years ago)• Drainage $1.8M• Facilities $4.0M• Neighborhood $7.4M• Parks and Beaches $2.9M• Sewer $8.3M• Streets and Transportation $11.8M• Water $5.0M•Residential Paving Cycle (9-year vs. 12-year)• To achieve a balanced budget staff reviewed the cost/benefit of the two cycles• Staff recommends a 12-year cycle for the following reasons:• 9-year cycle costs an additional $2.5 million annually, or $22.5M (current pricing) over the 9 years • Over 7 years the Pavement Classification Index (PCI) would only increase by 1 point (83.4 to 84.4), and both scores are in the “good” condition rating13143 CIP AES Funding Summary14ProjectNameProjectDescriptionIncluded in FY 2023/24 BudgetAESCompleteStreets Improvements•Banning landscape medians, bike lanes, sidewalk ($1M)•Potential enhancement to existing bike Lanes on Newland Magnolia,andBushard•4 radar feedback signs (Locations TBD)•Landscaped medianson Magnoliaand Hamilton (Locations TBD)2,560,000AESSeelyParkPlayground ImprovementsNew playground equipment350,000AESEaderParkImprovementsResurface pavement at Eader Park parking lot100,000AESBanning Branch Library Master PlanYear 1 of a multi‐year project to evaluate, with community input, options fora new 12,000 sq. ft. branch library, small park and parking on the existing site.335,000AESEdisonParkReconfigurationThe project includes the reconfiguration of Edison Park to include relocationof tot lots, walkways, dualuse tennis and pickle ball courts, other recreationamenities, as well as parking&hardscapeimprovements to mitigatesettlement issues. 1,200,000Contingency Funds355,000Total4,900,000144 AES Projects Map15145 Budget Balancing Plan16146 Budget Balancing Plan17•At the June 6thCity Council meeting, City staff were directed to provide a budget balancing plan to proactively address the FY 2024/25 General Fund projected deficit. •Departments submitted potential revenue opportunities and expenditure reductions totaling $7,179,520 for Council review; broken into two phases:•Level One: Effective July 1, 2023. The process to implement increased revenue options would begin at the start of Fiscal Year 2023/24. Approved budget reductions would be included in the Fiscal Year 2023/24 Adopted Budget.•Level Two: Effective January 1, 2024. Due to the level of effort and service level impacts for these budget reductions, items approved for elimination by City Council in this category may take an estimated six months to implement.147 Level 1 Options – Effective July 1, 202318•Includes revenue enhancements and expenditure reductions that can be more immediately executedREVENUE OPPORTUNITIESNo. Revenue Generating Service Type Dept Amount 1 Update the Master Fee and Charges Schedule Ongoing All 198,000 2Evaluate Emergency Medical Service (EMS) FeesOngoing Fire936,254 3 Lifeguard Tower AdvertisementsOngoing Fire356,441 4Police Fines and FeesOngoingPolice60,000 5LPR (License Plate Readers) Citation RevenueOngoingComm & Lib Svcs102,600 1,653,295 148 Level 1 Options – Effective July 1, 202319•Includes revenue enhancements and expenditure reductions that can be more immediately executedBUDGET REDUCTIONSNo.Cost ReductionsType Dept Amount 1Partial reprogramming of one‐time revenues from Emerald Cove loan repaymentOne‐time Citywide 1,138,297 2Employee Work Enhancements Ongoing Citywide712,000 3 CircuitOngoing Citywide350,000 4 Eliminate City Clerk Remodel CIPOne‐time City Clerk100,000 5Reclassify Director of Homeless & Behavioral Health position to ManagerOngoing City Mgr57,519 6Employee Medical ExamsOngoing HR35,000 7 Eliminate funding for MySidewalk dashboard programOngoing Info Svcs80,000 8 Eliminate IS Service VanOne‐time Info Svcs60,000 9 Reduce Equipment ReplacementOne‐time Info Svcs300,000 149 Level 1 Options – Effective July 1, 202320•Includes revenue enhancements and expenditure reductions that can be more immediately executedBUDGET REDUCTIONSNo.Cost ReductionsType Dept Amount 10Terminate Ice Rink Contract (if single sponsor does not materialize by date)OngoingComm & Lib Svcs157,594 11 Aquatics Summer Swim Lesson ExpansionOngoingComm & Lib Svcs138,950 12Eliminate a portion of the temporary salaries budget in the Housing and Permit Center Divisions and shift restricted fund grant work to the Senior Management AnalystOngoing Comm Dev203,739 13Code Enforcement Replacement Vehicles ‐downgrade three vehicle replacement upgrades from trucks to sedansOne‐time/Ongoing Comm Dev60,000 3,393,099 150 Level 2 Options – Effective January 1, 202421•Includes expenditure reductions that can be executed beginning January 1, 2024BUDGET REDUCTIONSNo. Cost Reductions Type Dept Amount 1 Eliminate Temporary Dept Asst IIOngoing City Clerk23,050 2 Reclassify Multimedia Officer to Multimedia Coordinator Ongoing City Mgr31,091 3Reduce Professional/Contract Services by eliminating contingency and reducing SOW (CMO)Ongoing City Mgr30,000 4Principal Finance Analyst (Budget) ‐Defund (1)Ongoing Finance143,253 5Call Center Part‐time StaffOngoing Finance35,000 6 Reduce various Public Works contract and maintenance budgets. Ongoing Public Works46,700 7Revise tree trimming from 6‐year to 7‐year cycle Ongoing Public Works 100,000 8Reduce contract and weekly landscape service for Facilities to 2x per month. Ongoing Public Works 123,882 9Gate Arm Efficiency Savings ‐Temp Salaries OngoingComm & Lib Svcs42,000 10 Eliminate Citywide Security ServicesOngoingComm & Lib Svcs147,692 151 Level 2 Options – Effective January 1, 202422•Includes expenditure reductions that can be executed beginning January 1, 2024BUDGET REDUCTIONSNo.Cost ReductionsType Dept Amount 11 Eliminate Park Ranger ServicesOngoingComm & Lib Svcs78,075 12 Senior Center ‐Saturday ClosureOngoingComm & Lib Svcs14,450 13 Edison/Murdy ‐5 hr less/weekOngoingComm & Lib Svcs17,000 14 Closure ‐Central Library (Sundays)OngoingComm & Lib Svcs150,000 15Reduction in Open Hours ‐Central Library (reduce Monday by 2 hrs; Tuesday‐Thursday by 3 hrs = 11 hrs/week) OngoingComm & Lib Svcs83,071 16Community Café Community Forum(costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in‐kind)OngoingComm & Lib Svcs35,000 17Reduce Temporary Salaries, Overtime, Equipment budget in Inspection Services and AdministrationOngoing Comm Dev 123,295 152 Level 2 Options – Effective January 1, 202423•Includes expenditure reductions that can be executed beginning January 1, 2024BUDGET REDUCTIONSNo.Cost ReductionsType Dept Amount 18 Accounting Technician (Accounts Payable) ‐Defund (1)Ongoing Finance94,998 19Reduce beach restroom cleaning intervals during non‐peak season monthsOngoing Public Works 100,000 20Reduce contract sign & lighting maintenance services and related equipment fundingOngoing Public Works62,000 21Eliminate City funded downtown power washing and porter service and transfer costs to the Downtown BIDOngoing Public Works 154,000 22Reduce contract and weekly landscape service to Pier Plaza, Bluff Top, & Sunset landscape 2x per monthOngoing Public Works69,000 23 Defund 1 Care Manager OngoingComm & Lib Svcs24,550 24 Closure ‐Banning BranchOngoingComm & Lib Svcs63,543 25 Closure ‐Main Street BranchOngoingComm & Lib Svcs66,883 153 Level 2 Options – Effective January 1, 202424•Includes expenditure reductions that can be executed beginning January 1, 2024BUDGET REDUCTIONSNo.Cost ReductionsType Dept Amount 26 Closure ‐Helen Murphy BranchOngoingComm & Lib Svcs36,140 27 Code Enforcement Technician ‐Defund (1)Ongoing Comm Dev85,933 28 Economic Development Project Manager ‐Defund (1)Ongoing Comm Dev152,520 2,133,126 154 Summary of Budget Balancing Plan25SummaryProposedRevenue Opportunities1,653,295Expenditure Reductions (One‐Time)1,643,297Expenditure Reductions (Ongoing)3,882,9287,179,520Reductions and Revenue Opportunities by Dept Proposed City Manager118,610 City Attorney‐City Clerk123,050 Community & Library Services1,157,548 Finance273,251 Fire1,292,695 Human Resources35,000 Information Services440,000 Community Development625,487 Police60,000 Public Works655,582 City Treasurer‐Citywide2,398,297 7,179,520 155 General Fund Long-Term Financial Plan5.5% CalPERS Return FY22/2326•Requires use of Section 115 Trust reserves starting in FY 2024/25. Projected future revenue amounts exclude one‐time revenues totaling approximately $25M expected to be received from the Department of Finance.(in thousands)Actual FY21/22Projected FY22/23Projected FY23/24Projected FY24/25*Projected FY25/26*Projected FY26/27*Revenue (Recurring)$256,246 $273,293 $280,790 $285,527 $291,724 $298,818 Revenue (One‐Time) / Use of Reserves‐29,607 11,080‐‐‐Total Sources of Funds256,246 302,900 291,870 285,527 291,724 298,818Expenditures less UAL234,277 251,031 265,012 265,363 269,122 272,018CalPERS UAL4,891 4,891 5,000 5,000 8,540 12,990POB Payment13688 13,556 13,276 13,010 12,750 12,537One‐Time Expenditures‐18,721 2,276‐‐‐POA MOU ‐‐4,646 7,593 10,559 11,979Unidentified Expenditures‐‐1,500 2,000 2,500 3,000Total Expenditures252,856 288,199 291,710 292,966 303,471 312,524HB Recovery Reserves‐(10,886)‐‐‐‐Surplus/(Deficit)$3,390 $3,815 $160 ($7,439)($11,747) ($13,706)156 General Fund Long-Term Financial Plan5.5% CalPERS Return FY22/23 –w/ Budget Balancing Plan27•Requires use of Section 115 Trust reserves starting in FY 2024/25. Projected future revenue amounts exclude one‐time revenues totaling approximately $25M expected to be received from the Department of Finance.(in thousands)Actual FY21/22Projected FY22/23Projected FY23/24Projected FY24/25*Projected FY25/26*Projected FY26/27*Revenue (Recurring)$256,246 $273,293 $280,790 $285,527 $291,724 $298,818 Revenue (One‐Time) / Use of Reserves‐29,607 11,080‐‐‐Total Sources of Funds256,246 302,900 291,870 285,527 291,724 298,818Expenditures less UAL234,277 251,031 265,012 265,363 269,122 272,018CalPERS UAL4,891 4,891 5,000 5,000 8,540 12,990POB Payment13688 13,556 13,276 13,010 12,750 12,537One‐Time Expenditures‐18,721 2,276‐‐‐POA MOU ‐‐4,646 7,593 10,559 11,979Unidentified Expenditures‐‐1,500 2,000 2,500 3,000Total Expenditures252,856 288,199 291,710 292,966 303,471 312,524HB Recovery Reserves‐(10,886)‐‐‐‐Surplus/(Deficit)$3,390 $3,815 $160 ($7,439)($11,747) ($13,706)Proposed Budget Balancing Plan‐‐5,286 7,180 7,180 7,180Surplus/(Deficit), Revised$3,390 $3,815 $5,446 ($259) ($4,567) ($6,526)157 Boards and Commissions28•Implementation of the proposed budget balancing plan will increase the workload on City staff and reduce the time available to complete core work duties. •To ensure that core City functions are maintained, staff is requesting policy direction from Council to reduce the frequency of meetings to every other month for a period of one year for the following Boards and Commissions:•Harbour Commission•Finance Commission•Jet Noise Commission•Historic Resources Board•Central Park Collaborative•Additionally, any Boards and Commissions request for staff efforts beyond four (4) hours, as determined by the primary staff liaison, with concurrence by the department head and City Manager, will require City Council approval. 158 Boards and Commissions29•Approved requests will be completed based on staff capacity and in the following priority order: (1) Day‐to‐day responsibilities and (2) Strategic Plan priorities. •Formalizing this process will require review and updates to Municipal Code Section 2.100, Operating Policy for Boards and Commissions.•The regular report to the City Council on the Strategic Plan will note changes to implementation of priorities due to work related to City Council‐approved assignments beyond core Boards and Commissions duties.159 FY 2023/24 Budget Approval Requested30160 City Council Approval Requested311) Adopt a budget for Fiscal Year 2023/20242) Authorize the Professional Services Listing included in the FY 2023/24 Budget3) Authorize the appropriation and transfer of the full balance ($4.9 million) of the AES Reserve from the General Fund to the AES Mitigation Fund 12844) Authorize the appropriation and transfer of $3,903,803 from the General Fund Equipment Replacement Reserve to the Equipment Replacement Fund 3245) Revert back to a 12-year paving cycle to achieve a balanced budget6) Adopt Resolution No. 2023-25 Establishing the Gann Appropriation Limit for Fiscal Year 2023/2024 in the amount of $1,171,687,7737) Adopt Resolution No. 2023-23 Levying a Retirement Property Tax for Fiscal Year 2023/2024 to Pay for Pre-1978 Employee Retirement Benefits161 City Council Approval Requested328) Adopt Resolution No. 2023-27 Amending the City’s Classification Plan by Adding the Classifications of Graphic Designer, Multimedia Coordinator, Homeless Services Manager, and Municipal Records Manager9) Approve the recommended update to the General Fund Reserve Policy and consolidation of certain General Fund assignments to the Economic Uncertainties Reserve10)Adopt Resolution No. 2023-26 Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections 11)Approve Amendment No. 2 to the professional services contract with Mind OC for the Be Well HB mobile crisis response program12)Approve the professional services contract with National Council for Community Development (NDC) for technical assistance services162 City Council Approval Requested3313)Approve the professional services contract with Hinderliter, De Llamas and Associates for sales and use tax auditing services14)Approve the Budget Balancing Plan to proactively address the Fiscal Year 2024/25 Projected General Fund Deficit15)Approve modifications to the frequency of select Boards and Commissions (“BCCs”) and direct staff to update Municipal Code Section 2.100, “Operating Policy for Boards and Commissions,” to formalize a process for BCC-directed assignments exceeding four (4) hours of staff time163 Questions?164 FY 2023/24 All Funds Proposed Revenues - $502.2M35Property Tax26.9%Sales Tax11.5%Franchises2.3%Transient Occupancy Tax3.3%Utility Users Tax4.2%License & Permits2.4%Fines & Forfeitures1.0%Use of Money & Property4.3%Revenue from Other Agencies4.0%Charges for Current Services25.4%Other Revenue0.5%Non‐Operating Revenue14.2%BY CATEGORY165 FY 2023/24 All Funds Proposed Revenues - $502.2M36General Fund55.8%Special Revenue Funds6.0%Capital Projects Funds5.2%Debt Service Funds6.5%Enterprise Funds15.0%Internal Service Funds4.8%Trust & Agency Funds6.4%Other Funds0.2%BY FUND TYPE166 FY 2023/24 All Funds Proposed Expenditures - $508.8M* Transfers include Infrastructure, Equipment, General Liability & Section 115 Trust Transfers37Personnel$209,932,797 41%Operating$155,390,819 31%Capital Expenditures$51,468,254 10%Debt Service$41,109,511 8%Transfers *$50,916,672 10%BY CATEGORYGeneral Fund56.1%Special Revenue Funds5.2%Capital Projects Funds4.5%Debt Service Funds5.0%Enterprise Funds17.6%Internal Service Funds5.9%Trust & Agency Funds5.5%Other Funds0.2%BY FUND TYPE167 978.25 983.75 986.25 986.25 986.25 987.25 958.25 980.75 991.75 1,002.75 950.00 960.00 970.00 980.00 990.00 1,000.00 1,010.00FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24FY 2023/24 Full Time Equivalent – All FundsPre‐COVID38168 General Fund Long-Term Financial Plan5.5% CalPERS Return FY22/2339(in thousands)Actual FY21/22Projected FY22/23Proposed FY23/24 *ProjectedFY24/25ProjectedFY25/26ProjectedFY26/27Revenue (Recurring)$256,246 $273,293 $278,120 $286,798 $292,395 $298,247 Revenue (One‐Time)‐29,607 2,276‐‐ ‐Planned Use of Reserves‐‐8,804‐‐ ‐Total Sources of Funds$256,246 $302,900 $289,200 $286,798 $292,395 $298,247 Expenditures less UAL234,277 251,031 265,012 265,363 269,122 272,018CalPERS UAL4,891 4,891 5,000 5,000 8,540 12,990POB Payment13,688 13,556 13,276 13,010 12,750 12,537One‐Time Expenditures‐18,135 2,276‐‐ ‐Total Expenditures252,856 287,613 285,564 283,373 290,412 297,545HB Recovery Reserves‐(11,472)‐‐‐ ‐Surplus/(Deficit)$3,390 $3,815 $3,636 $3,425 $1,983 $702 •Proposed FY 23/24 Budget does not include $3.1M in fees and charges adjustments approved by City Council in May 2023.169 General Fund Long-Term Financial Plan5.5% CalPERS Return FY22/23 – POA Proposal40(in thousands)Actual FY21/22Projected FY22/23Projected FY23/24 *ProjectedFY24/25 *ProjectedFY25/26 *ProjectedFY26/27 *Revenue (Recurring)$256,246 $273,293 $280,790 $288,377 $294,574 $301,668 Revenue (One‐Time)‐29,607 2,276‐‐ ‐Planned Use of Reserves‐‐8,804‐‐ ‐Total Sources of Funds$256,246 $302,900 $291,870 $288,377 $294,574 $301,668 Expenditures less UAL234,277 251,031 265,012 265,363 269,122 272,018CalPERS UAL4,891 4,891 5,000 5,000 8,540 12,990POB Payment13,688 13,556 13,276 13,010 12,750 12,537One‐Time Expenditures‐18,721 2,276‐‐ ‐POA Proposal‐‐4,646 7,593 10,559 11,979Total Expenditures252,856 288,199 290,210 290,966 300,971 309,524HB Recovery Reserves‐(10,886)‐‐‐‐Surplus/(Deficit)$3,390 $3,815 $1,660 ($2,589) ($6,397) ($7,856)* Projected future revenue amounts exclude one‐time revenues expected to be received from the Department of Finance.170 General Fund Long-Term Financial Plan5.5% CalPERS Return FY22/23 – POA & PMA Proposal41(in thousands)Actual FY21/22Projected FY22/23Projected FY23/24 *ProjectedFY24/25 *ProjectedFY25/26 *ProjectedFY26/27 *Revenue (Recurring)$256,246 $273,293 $280,790 $288,377 $294,574 $301,668 Revenue (One‐Time)‐29,607 2,276‐‐ ‐Planned Use of Reserves‐‐8,804‐‐ ‐Total Sources of Funds$256,246 $302,900 $291,870 $288,377 $294,574 $301,668 Expenditures less UAL234,277 251,031 265,012 265,363 269,122 272,018CalPERS UAL4,891 4,891 5,000 5,000 8,540 12,990POB Payment13,688 13,556 13,276 13,010 12,750 12,537One‐Time Expenditures‐18,721 2,276‐‐ ‐POA & PMA Proposal‐‐5,107 8,345 11,609 13,167Total Expenditures252,856 288,199 290,671 291,718 302,021 310,712HB Recovery Reserves‐(10,886)‐‐‐‐Surplus/(Deficit)$3,390 $3,815 $1,199 ($3,341) ($7,447) ($9,044)* Projected future revenue amounts exclude one‐time revenues expected to be received from the Department of Finance.171 172 173 174 175 176 177 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-568 MEETING DATE:6/26/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager PREPARED BY:Theresa St. Peter, Interim Human Resources Director Subject: Adopt Resolution No. 2023-32 Approving and Implementing the Memorandum of Understanding (MOU) between the Huntington Beach Police Management Association (PMA) and the City of Huntington Beach for July 1, 2023 through June 30, 2026 Statement of Issue: The Memorandum of Understanding (MOU) between the Huntington Beach Police Management Association (PMA) and the City will expire at the end of 2023. The City and PMA engaged in good- faith negotiations reaching a tentative agreement on terms on June 13, 2023 for a three year contract covering the period of July 1, 2023 through June 30, 2026. The MOU was approved for introduction at the June 20, 2023 City Council meeting, and pursuant to the City’s municipal code, the MOU is placed on the agenda for formal consideration by the City Council. Financial Impact: Pursuant to the terms reached in the MOU with PMA, the total projected cost of the labor pact as estimated by the Finance Department is approximately $469,000 in Year 1; $291,000 in Year 2; and $298,000 in Year 3. The cost of the contract is estimated to total $1.2 million annually including the cost increases to the City’s CalPERS expenses beginning in Fiscal Year 2026/27. Recommended Action: A) Adopt Resolution NO. 2023-32, “A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Police Management Association (PMA) and the City for July 1, 2023 through June 30, 2026;” and, B) Authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2023-32. Alternative Action(s): Do not approve the introduction of the proposed successor MOU for PMA employees and direct staff to continue to: (1) meet and confer with the Association, or (2) utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution City of Huntington Beach Printed on 6/23/2023Page 1 of 3 powered by Legistar™178 File #:23-568 MEETING DATE:6/26/2023 Analysis: The Police Management Association has 13 City Employees and the current MOU is expire at the end of the calendar year. Representatives for the City and PMA engaged in active discussions on a new labor agreement, and ultimately reaching a tentative agreement on a 3-year contract term on June 13, 2023. The MOU was approved for introduction at the June 20, 2023 the City Council Meeting and is now before the City Council for consideration for adoption and approval. Key changes in the proposed MOU include the following: Term of Agreement July 1, 2023 through June 30, 2026 Wage Increase ·Year 1 - employees shall receive a 5.0% base salary increase ·Year 2 - employees shall receive a 5.0% base salary increase ·Year 3 - employees shall receive a 5.0% base salary increase Pay Programs ·Advance POST Certification: Increase the premium for possession of an advanced POST certificate from 6% to 8% beginning the pay period including 7/1/2023. ·Special Pay - Incentive Program: Executive Development - Added language to provide the following as option to receive 5% incentive: The California Police Chief’s Executive Leadership Institute at Drucker School of Management AND possession of a Master’s Degree AND two (2) years’ management experience. ·Longevity Pay: Increase of longevity pay for employees with 20+ years of sworn law enforcement experience from 11% to 16%. ·Change language for Acting Assignments to provide payment of assignments in a higher classification with the continuous period of 28 days. Allow for retroactivity of pay for all time worked in the assignment. ·Removal performance Bonus program. Health Insurance Benefits ·Health Benefits - the City’s contribution towards employee’ health insurance at each plan level (i.e. Employee, Employee + 1, Employee + 2 or more) shall increase as follows: o January 1, 2024, increase monthly contributions to medical insurance for single, two- party and family by $39, $78 and $101, respectively. o January 1, 2025, increase monthly contributions to medical insurance for single, two- party and family by $33, $66 and $84, respectively. City of Huntington Beach Printed on 6/23/2023Page 2 of 3 powered by Legistar™179 File #:23-568 MEETING DATE:6/26/2023 Leave Benefits ·General Leave Accrual - added language in computing eligibility for continuous service, for sworn law enforcement members of the unit, it shall include sworn law enforcement service at another law enforcement agency. ·Cash Out of Compensatory Time Off - added language: Twice each year, employees may, at their option, be paid for their compensatory time off. Payment when requested under this section shall be at the employee’s regular rate of pay in effect at the time the request is made Other Items ·Alternative Dispute Resolution Agreement: Term of the Agreement modified to remove language pertaining to temporary nature of agreement, and modified sentence as follows: The parties reserve the right to terminate this Agreement at any time, by mutual agreement or by act of the legislature. Environmental Status: NA Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2023-32 2. Summary of Memorandum of Understanding Modifications 3. Fiscal Impact Report 4. PowerPoint Presentation 5. Proposed Memorandum of Understanding City of Huntington Beach Printed on 6/23/2023Page 3 of 3 powered by Legistar™180 181 City of Huntington Beach Police Management Association Tentative Agreement June 13, 2023 Article # Subject Proposal XVI Term of Memorandum of Understanding July 1, 2023 – June 30, 2026 III (A) Salary Schedule Effective June 24, 2023, employees will receive a base salary increase of five percent (5.0%) Effective the pay period including July 1, 2024, employees will receive a base salary increase of five percent (5.0%). Effective the pay period including July 1, 2025, employees will receive a base salary increase of five percent (5.0%). V Health and Other Insurance Benefits The City’s contribution towards employees’ health insurance at each plan level (i.e., E/ee, E/ee+1, E/ee+2 or more) shall be increased as follows: i. January 1, 2024, increase monthly contributions to medical insurance for single, two‐party and family by $39, $78 and $101, respectively. ii. January 1, 2025, increase monthly contributions to medical insurance for single, two‐party and family by $33, $66 and $84, respectively. IX (B)(4) Leave Benefits – General Leave Accrual Added language: In computing eligibility for continuous service, for sworn law enforcement members of the unit, it shall include sworn law enforcement service at another law enforcement agency. XII (B) (2) Work Schedule/Exempt Compensatory Time and Executive Leave Added language: Cash Out of Compensatory Time Off ‐ Twice each year, employees may, at their option, be paid for their compensatory time off. Payment when requested under this section shall be at the employee’s regular rate of pay in effect at the time the request is made. On or before the beginning of the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued compensatory time off which will be earned in the following calendar year. The employee can elect to 182 receive cash for their accrued compensatory time off up to two times per calendar year, and in a cumulative amount not to exceed the number of hours the employee irrevocably elected to cash out in the prior year. However, if the employee’s compensatory time off leave balance in the pay period containing December 15th is less than (the balance of) the total amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out. Compensatory time off which is cashed out will be paid at the employee’s regular rate of pay XIII (A) Special Pay – Advanced POST Certification Increase the premium for possession of an Advanced POST certificate from 6% to 8% the pay period including 7/1/23 XIII (C) (3) Special Pay – Incentive Program: Executive Development Added language: The California Police Chief’s Executive Leadership Institute at Drucker School of Management AND possession of a Master’s Degree AND two (2) years’ management experience; or XIII (D) (2) Special Pay – Longevity Pay Increase of longevity pay for employees with 20+ years of sworn law enforcement experience from 11% to 16%. XIII (c) Special Pay – Acting Assignment Modification to language: When a member of this unit is assigned by the Chief of Police to work in a position of higher classification or pay range for a continuous period of twenty eight (28) or more calendar days, they shall retroactively be compensated “acting” pay in the amount of ten percent (10%) for all time worked in the acting assignment, beginning from the first day assigned The assigned employee must submit a memorandum to the Chief of Police indicating the date of assignment and hours assigned before compensation can be paid. Nothing in this section shall limit the Chief of Police, to assign employees temporarily to a position of higher classification for a period of less than twenty‐eight (28) days for operational needs. 183 City of Huntington BeachDraft Costing Summary City Proposal #1 6‐13‐23 Proposed Term: 3 yearsYear 1Year 2Year 3MOU Item #DescriptionEstimated YOYImpactEstimated YOYImpactEstimated YOYImpactTotal Cost of Proposal Ongoing Cost *Year 1Year 2Year 3% Cost Increase Notes:1Term: 3 years (Jul 1, 2023 ‐ Jun 30, 2026)Salary IncreasesSworn253,923 267,102 280,727 801,752 940,343 5.10%5.36% 5.63% 16.09%Advanced POSTSworn70,495 3,596 3,779 77,870 77,870 1.41% 0.07% 0.08% 1.56%Longevity PaySworn137,181 6,998 7,355 151,533 151,533 2.75% 0.14% 0.15% 3.04%General Leave AccrualSworn‐ ‐ ‐ ‐ ‐ 0.00%Compensatory Time CashoutSworn‐ ‐ ‐ ‐ ‐ 0.00%Health BenefitsSworn7,368 13,506 6,138 27,012 27,012 0.15% 0.27% 0.12% 0.54%Total Cost of Proposal468,967 291,202 297,999 1,058,167 1,196,758 9.41% 5.84% 5.98%21.24%* Ongoing Cost includes impact of proposed contract increases on the City's UAL. Additional liabilities are incurred during FY's 26/27 ‐ 28/29 due to a lag in PERS reporting.25%, 5%, 5%. Total increase = 16.09%3Increase by 2% from 6% to 8%6New ‐ ability to cash out twice per year7Increase to monthly contributions beg. Jan 1, 2024 and Jan 1, 20254Increase by 5% for 20+ yrs of service, from 11% to 16%5Based on total sworn experience, rather than only at COHB.184 Conideration of the Proposed Memorandum of Understanding with the Police Management Association (PMA)CITY OF HUNTINGTON BEACHCITY COUNCIL MEETINGJune 26, 2023185 OverviewPursuant to the MMBA, the City has been meeting and conferring in good faith during June of 2023 with the PMA.We reached tentative agreement with the PMA in June 13, 2023.On June 20, 2023, the City Council voted affirmatively to Introduce the PMA labor agreements for formal consideration.186 Proposed Memorandum of Understanding• 3-year agreement (June 24, 2023 through last pay period of FY 25/26)• 5% wage increase for each FY of the contract• Increases and adjustments to various pay programs such as Advance POST Certificate Pay, Executive Development, Longevity Pay, Acting Assignments, as well as other types of special pay.• Clarification for Compensatory TimeOff Cash Out• Increases in City Contribution for Health Benefits187 Fiscal ImpactFiscal YearProject FY 2023/24$469,000 FY 2024/25$291,000 FY 2025/26$298,000 FY 2026/27$142,000 Total $1.2 million188 City Council OptionsRecommended ActionAuthorize the City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2023-xxAlternate ActionDo not approve Resolution N0. 2023-xx and the Proposed Memorandum of Understanding and direct staff to:1) Continue to meet and confer with the PMA2) Utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution189 Questions?190 Memorandum of Understanding Between Huntington Beach Police Management Association and City of Huntington Beach July 1, 2023 –June 30, 2026 191 POLICE MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS PMA MOU July 1, 2023 through June 30, 2026 i PREAMBLE ................................................................................................................ 1 ARTICLE I -- REPRESENTATIONAL UNIT ................................................................... 1 ARTICLE II -- EXISTING CONDITIONS OF EMPLOYMENT ......................................... 1 ARTICLE III -- SALARY SCHEDULES ........................................................................... 1 A.SALARY SCHEDULE EXHIBIT A ......................................................................................... 2 ARTICLE IV - RETIREMENT .......................................................................................... 2 A. CLASSIC SAFETY EMPLOYEE RETIREMENT BENEFITS ....................................................... 2 1. 3 @ Age 50 Plan .......................................................................................................................... 2 2. 1959 Survivors' Benefits .............................................................................................................. 2 3. Pre-retirement Optional 2 Death Benefit ...................................................................................... 2 4. One Year Final Compensation ..................................................................................................... 2 5. Classic Safety CalPERS Member Contribution ........................................................................... 2 6. Classic Member Safety CalPERS Cost Sharing .......................................................................... 2 B. Self-Funded Supplemental Retirement Benefit ........................................................................................ 3 C. CalPERS "New Member" Retirement Benefits......................................................................................... 3 D. "New Member" Safety Retirement Benefits .............................................................................................. 3 1. CalPERS "New Member" Safety Retirement Formulas ............................................................... 3 2. 1959 Survivors' Benefit Level IV .................................................................................................. 3 3. Pre-Retirement Optional Settlement 2 Death Benefit .................................................................. 3 4.Three Year Final Compensation ................................................................................................... 3 5. New Member Safety CalPERS Member Contributions ................................................................ 3 6. New Member Safety CalPERS Cost Sharing .............................................................................. 4 ARTICLE V -- HEALTH AND OTHER INSURANCE BENEFITS ................................... 4 A. HEALTH .................................................................................................................. 4 1. CalPERS Public Employees' Medical and Hospital Care Act (PEMHCA) .................................. 4 a. PEMHCA Employer Contributions .......................................................................................... 4 b. Maximum Employer Contributions Towards Flex Benefits ..................................................... 4 2. Dental Insurance .......................................................................................................................... 5 3. Retiree (Annuitant) Coverage ...................................................................................................... 6 a. City Contribution (Unequal Contribution Method) for Retirees ............................................... 7 b. Termination of Participation in the CalPERS PEMHCA program - Impact to Retirees .......... 7 c. Termination Clause ................................................................................................................. 7 4. Medical/Vision Cash-Out ............................................................................................................. 7 B. SECTION 125 EMPLOYEE PLAN ................................................................................ 8 C. LIFE INSURANCE ..................................................................................................... 8 D. CITY CONTRIBUTION TOWARDS LTD INSURANCE AND LTC PROGRAM ........................ 8 192 POLICE MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS PMA MOU July 1, 2023 through June 30, 2026 ii E. EMPLOYEE W ELFARE BENEFIT TRUST FUND ............................................................. 9 ARTICLE VI -- BEREAVEMENT LEAVE ...................................................................... 10 ARTICLE VII -- ADDITIONAL MANAGEMENT BENEFITS ......................................... 10 A. TAKE HOME VEHICLE USE ..................................................................................... 10 B. BILINGUAL PAY ..................................................................................................... 10 C. UNIFORM ALLOWANCE ........................................................................................... 11 D. MEAL AND MILEAGE ALLOWANCE ........................................................................... 11 E. EFFECTIVE DATE OF ADDITIONAL MANAGEMENT BENEFITS ....................................... 12 ARTICLE VIII -- CONTROLLED SUBSTANCE AND ALCOHOL TESTING ................ 12 ARTICLE IX–LEAVE BENEFITS .................................................................................. 12 A. ANNIVERSARY DATE .............................................................................................. 12 B. GENERAL LEAVE ................................................................................................... 12 1. Purpose ..................................................................................................................................... 12 2. Anniversary Date ....................................................................................................................... 12 3. Annual General Leave Eligibility ................................................................................................ 12 4. General Leave Accrual .............................................................................................................. 13 5. Use of General Leave ................................................................................................................ 13 6. General Leave Conversion to Pay During Employment ............................................................ 14 7. Transfer of the Value of General Leave at Separation .............................................................. 14 C. LEAVE BENEFIT ENTITLEMENTS .............................................................................. 14 D. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ........................................ 15 ARTICLE X SICK LEAVE PAY OUT ........................................................................... 15 ARTICLE XI -- HOLIDAYS ........................................................................................... 15 A. CITY PAID HOLIDAYS ............................................................................................. 15 B. HOLIDAY IN LIEU PAY - EFFECTIVE JANUARY 12, 2022 ............................................. 16 ARTICLE XII -- WORK SCHEDULE / EXEMPT COMPENSATORY TIME AND EXECUTIVE LEAVE ............................................................................. 16 A. WORK SCHEDULE ................................................................................................. 16 1. 4-10 Plan ................................................................................................................................... 16 2. 7-11.5 Plan ................................................................................................................................ 16 a. Work Day .............................................................................................................................. 16 b. Work Period .......................................................................................................................... 16 B. DEDUCTIONS FROM PAY, EXEMPT COMPENSATORY TIME AND EXECUTIVE LEAVE ..... 17 C. Executive Leave ................................................................................................. 17 193 POLICE MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS PMA MOU July 1, 2023 through June 30, 2026 iii ARTICLE XIII -- SPECIAL PAY .................................................................................... 18 A. ADVANCED POST CERTIFICATE ............................................................................. 18 B. EDUCATION INCENTIVE PAY ................................................................................... 18 C. EXECUTIVE DEVELOPMENT INCENTIVE PROGRAM .................................................... 18 D. LONGEVITY PAY .................................................................................................... 18 E. ACTING ASSIGNMENT ............................................................................................... 19 ARTICLE XIV-- MANAGEMENT RIGHTS .................................................................... 19 ARTICLE XV-- MISCELLANEOUS PROVISIONS ....................................................... 20 A. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION (EERR) ........................................ 20 1. Amendments to the EERR ........................................................................................................ 20 a. Modification of Section 7 - Decertification and Modification ................................................. 20 B. WEAPONS VESTING............................................................................................... 21 C. ASSOCIATION BUSINESS ........................................................................................ 21 D. COLLECTION OF PAYROLL OVER PAYMENTS............................................................ 21 E. DIRECT DEPOSIT ................................................................................................... 22 F. ADMINISTRATION APPEAL PROCEDURE ................................................................... 22 G. GRIEVANCE HEARING COST SHARING ..................................................................... 22 H. ALTERNATIVE DISPUTE RESOLUTION AGREEMENT ................................................... 22 ARTICLE XVI -- TERM OF MEMORANDUM OF UNDERSTANDING ......................... 22 ARTICLE XVII -- CITY COUNCIL APPROVAL ............................................................ 24 LIST OF MOU EXHIBITS .............................................................................................. 25 EXHIBIT A – SALARY SCHEDULE ............................................................................. 26 EXHIBIT B - SERVICE CREDIT SUBSIDY PLAN ........................................................ 27 EXHIBIT C - ADMINISTRATIVE APPEAL PROCEDURE ............................................ 30 EXHIBIT D - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ......... 33 EXHIBIT E - ALTERNATIVE DISPUTE RESOLUTION AGREEEMENT ..................... 37 194 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH, CALIFORNIA (Herein Called CITY) AND THE HUNTINGTON BEACH POLICE MANAGEMENT ASSOCIATION (Hereinafter Called ASSOCIATION) PREAMBLE WHEREAS the designated representative of the City of Huntington Beach and the Huntington Beach Police Management Association (PMA) have met and conferred in good faith with respect to salaries, benefits and other terms and conditions of employment for the employees represented by the Association; NOW THEREFORE, this Memorandum of Understanding (MOU) is made, to become effective July 1, 2023 through June 30, 2026. Except as otherwise provided in this MOU, the provisions are effective on July 1, 2023. ARTICLE I -- REPRESENTATIONAL UNIT It is recognized that the Huntington Beach Police Management Associatio n is the employee organization which has the right to meet and confer in good faith with the City on behalf of represented employees of the Huntington Beach Police Department within the classification titles of Police Captain and Police Lieutenant as outli ned in Exhibit A attached hereto and incorporated herein. ARTICLE II -- EXISTING CONDITIONS OF EMPLOYMENT Except as expressly provided herein, the adoption of this MOU shall not change existing terms and conditions of employment, which have been established for the classifications represented by the Huntington Beach Police Management Association. ARTICLE III -- SALARY SCHEDULES A. Employees shall be compensated at rates by classification title and salary range during the term of this Agreement as set out in Exhibit A attached hereto and incorporated herein unless expressly provided for in other Articles of this MOU. 195 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 2 Effective June 24, 2023, employees will receive a base salary increase of five percent (5.0%). Effective the pay period including July 1, 2024, employees will receive a base salary increase of five percent (5.0%). Effective the pay period including July 1, 2025, employees will receive a base salary increase of five percent (5.0%). ARTICLE IV – RETIREMENT A. Classic Safety Employee Retirement Benefits: 1. 3% @ Age 50 Plan - The City shall provide the 3% @ Age 50 retirement formula set forth in California Government Code Section 21362.2 for all safety employees defined as “classic members” per the Public Employees’ Pension Reform Act of 2013 (PEPRA) represented by the Association. 2. 1959 Survivors’ Benefit Level IV (California Government Code Section 21574) Members of the City’s safety retirement plan shall be covered by the Fourth Level of the 1959 Survivor Benefit. 3. Pre-retirement Optional 2 Death Benefit (California Government Code Section 21548) – Safety Employees) 4. One-Year Final Compensation (California Government Code Section 20042) 5. Classic Safety CalPERS Member Contribution: a. All classic member safety members shall pay their CalPERS member contribution of nine percent (9%) of compensation earnable. b. The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. 6. Classic Member Safety CalPERS Cost Sharing: a. Classic member safety members cost share four percent (4%) compensation earnable in accordance with Government Code section 20516(f). 196 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 3 B. Self-Funded Supplemental Retirement Benefit – In the event a PERS member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees’ Retirement law, and the member is a unit employee who was hired prior to July 6, 1998, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for their life alone as provided in California Government Code sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member, shall be payable by the City during the life of the member, and upon that member’s death, the City’s obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. All unit employees hired after July 6, 1998 shall not be eligible for this benefit). C. CalPERS “New Member” Retirement Benefits: For “New Members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA) of 2013 as defined in California Government Code Section 7522.04(f). D. “New Members” Safety Retirement Benefits: 1. CalPERS “New Member” Safety Retirement Formula: 2.7% @ Age 57 Plan - The City shall provide the 2.7% @ Age 57 retirement formula set forth in California Government Code Section 7522.25(d) for all safety employees defined as “new members” per the Public Employees’ Pension Reform Act of 2013 (PEPRA) represented by the Association. 2. 1959 Survivors’ Benefit Level IV (California Government Code Section 21574 ) – these members of the City’s safety retirement plan shall be covered by the Fourth Level of the 1959 Survivor Benefit. 3. Pre-Retirement Optional Settlement 2 Death Benefit (California Government Code Section 21548) these members of the City’s safety retirement plan shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit. 4. Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of their retirement, or some other 36 consecutive month period designated by the member, as required by California Government Code Section 7522.32(a). 5. New Member Safety CalPERS Member Contribution: Sworn employees covered by this agreement shall pay one half (50%) of the normal cost rate, as established by CalPERS, as required by California Government Code Section 7522.30(c). 6. New Member Safety CalPERS Cost Sharing: Effective the beginning of the pay period including January 1, 2022, “new members” safety members shall pay at 197 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 4 least thirteen percent (13%) of pensionable compensation as their retirement contribution. If the required contribution per PEPRA (half the normal cost) is less than thirteen percent (13%), employees shall pay the difference between the required PEPRA contribution and thirteen percent (13%) as cost sharing per Government Code section 20516(f). If the required PE PRA contribution is at least thirteen percent (13%) or more, “new members” safety members will pay the required PEPRA contribution. ARTICLE V -- HEALTH AND OTHER INSURANCE BENEFITS A. Health The City shall continue to make available group medical, dental and vision benefits to all employees and qualified dependents. The effective date for medical, dental and vision coverage is the first of the month following date of hire. Effective the first of the month following the employee’s date of hire, any required employee payroll deduction shall begin with the first full pay period following the effective date of coverage and shall continue through the end of the month in which the employee separates, unless otherwise precluded by the CalPERS Public Employees’ Medical and Hospital Care Act (PEMHCA). All employee contributions shall be deducted on a pre-tax basis. 1. CalPERS PEMHCA The City presently contracts with CalPERS to provide medical coverage. The City is required under CalPERS PEMHCA to make a contribution to retiree medical premiums. A retiree’s right to receive a City contribution, and the City’s obligation to make payment on behalf of retirees, shall only exist as long as the City contracts with CalPERS for medical insurance. In addition, while the City is in CalPERS, its obligations to make payments on behalf of retirees shall be limited to the required statutory minimum payment. a. PEMHCA Employer Contributions The City shall contribute on behalf of each employee the mandated minimum sum (i.e., the annual PEMHCA statutory minimum) as required per month toward the payment of premiums for medical insurance under the PEMHCA program. As the mandated minimum is increased, the City shall make the appropriate adjustments by decreasing its flex benefits contribution accordingly as defined in the following sub-section. b. Maximum Employer Contributions Towards Flex Benefits For the term of this Agreement, the City’s maximum monthly employer contributions for each employee’s medical and vision insurance premiums are set forth as follows: 198 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 5 Type of Coverage Medical Premium Employee Only (“EE”) $820.00 Employee + one dependent (“EE” + 1) $1650.00 Employee + two or more dependents (“EE” + 2) $2,2100.00 Effective January 1, 2024 Type of Coverage Medical Premium Employee Only (“EE”) $859.00 Employee + one dependent (“EE” + 1) $1728.00 Employee + two or more dependents (“EE” + 2) $2201.00 Effective January 1, 2025 Type of Coverage Medical Premium Employee Only (“EE”) $892.00 Employee + one dependent (“EE” + 1) $1794.00 Employee + two or more dependents (“EE” + 2) $2285.00 i. The City shall also pay up to $23.50 per month for each employee for the VSP Vision Plan. The parties agree the required PEMHCA statutory minimum contribution (i.e., the annual PEMHCA statutory minimum) is included in this sum stated in the sub-section above. If the employee enrolls in a p lan wherein the costs exceed the City contribution, the employee is responsible for all additional premiums through pre-tax payroll deductions. 2. Dental Insurance The annual maximum benefit for the Delta Dental PPO plan is two thousand dollars ($2,000). a. The maximum monthly City Contribution for dental insurance shall be as follows: 1) employee only (“EE”) - $57.86; 2) employee plus one dependent 199 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 6 (“EE+1”) - $108.02 or 3) employee plus two or more dependents (“EE+2”) - $142.36. b. The City’s contribution to dental insurance shall not increase. Any increase in dental premiums above the City’s current contribution cap as listed herein, will be the responsibility of the employee. Table 1. PMA Health Contributions Effective January 1, 2023 Maximum City Contribution The City agrees to contribute up to the premium, but not higher than the maximums listed below: Tier Medical Dental PPO Dental HMO Vision Single 849.19 57.86 30.11 23.50 Two Party 1727.48 108.02 51.19 23.50 Family 2203.13 142.36 78.29 23.50 For employees who elect to discontinue vision coverage, the employee premium paid for vision coverage will be applied toward the medical premium. Table 2. PMA Health Contributions Effective January 1, 2024 Maximum City Contribution The City agrees to contribute up to the premium, but not higher than the maximums listed below: Tier Medical Dental PPO Dental HMO Vision Single 888.19 57.86 30.11 23.50 Two Party 1,805.48 108.02 51.19 23.50 Family 2,304.13 142.36 78.29 23.50 Table 3. PMA Health Contributions Effective January 1, 2025 Maximum City Contribution The City agrees to contribute up to the premium, but not higher than the maximums listed below: Tier Medical Dental PPO Dental HMO Vision Single 921.19 57.86 30.11 23.50 Two Party 1,871.48 108.02 51.19 23.50 Family 2,388.13 142.36 78.29 23.50 3. Retiree (Annuitant) Coverage As required by the Government Code retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. The City’s requirement to provide retirees and/or annuitants medical coverage is solely governed by the Government Code requirement that requires the City to extend this benefit to retirees (annuitants). While the City is contracted with CalPERS 200 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 7 to participate in the PEMHCA program, CalPERS shall be the sole determiner of eligibility for retiree and/or annuitant to participate in the PEMHCA program. a. City Contribution (Unequal Contribution Method) for Retirees As allowed by the Government Code and the CalPERS Board, and requested by the Association, the City shall use the Unequal Contribution Method to make City contributions on behalf of each retiree or annuitant. The starting year for the unequal contribution method is 2004 at $1.00 per month. The City’s contribution for each annuitant shall be increased annually by five percent (5%) of the monthly contribution for employees, until such time as the contributions are equal. The Service Credit Subsidy will be reduced every January 1 st by an amount equal to any required amounts to be paid by the City on behalf of the retiree (annuitant). The City shall make these payments only while the City is a participant in the PEMHCA program. b. Termination of Participation in the CalPERS PEMHCA program – Impact to Retirees The City’s requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the Association and the City or if the City elects to impose termination of its participation in the PEMHCA program, retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the City terminates its participation in the PEMHCA program, the Retiree Medical Subsidy program in place per Resolution No. 2000-116, Exhibit B, to the MOU shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. c. Termination Clause The City and Association may each request termination of the City’s contract with CalPERS after the announcement of State Legislation, Judicial Rulings, or a CalPERS Board Action that changes the employer’s contribution, insurance premiums, or program changes to the CalPERS medical plan. The City and Association may elect to term inate its participation in the CalPERS PEMHCA program by mutual agreement through the meet and confer process between the Association and the City. 4. Medical/Vision Cash-Out a. Employees covered by a medical program outside of a City-provided program (evidence of which must be supplied to the Human Resources 201 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 8 Division), may elect to discontinue City medical coverage and either direct the cash value of the City’s Contribution Cap for the lowest -cost employee only (“EE”) medical coverage as described in Article V.A.1.(b) be deposited into their Deferred Com pensation account, or any other pre-tax program offered, or approved by the City, or the employee may elect to receive this amount as a cash medical-opt out benefit. B. Section 125 Employee Plan The City shall provide an Internal Revenue Code Section 125 employee plan that allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or unreimbursed medical expenses as determined by the Internal Revenue Code. C. Life Insurance The City will provide fifty thousand dollars ($50 ,000) term life insurance and fifty thousand dollars ($50,000) accidental death and dismemberment insurance without evidence of insurability other than evidence of working full time. An additional ten thousand dollars ($10,000) of life insurance may be pu rchased, at the employee’s cost, with evidence of insurability. D. City Contribution Towards Long-Term Disability (LTD) Insurance and Long-Term Care (LTC) Program The City authorizes the Association to enroll in the Long-Term Disability (LTD) Insurance Program and the Long-Term Care (LTC) Program provided to the Huntington Beach Police Officers’ Association (HBPOA). 1. The City shall pay the HBPOA on the Association’s behalf the cost of LTD premiums not to exceed thirty-eight dollars ($38.00) per month per covered members of the PMA. 2. The City shall pay the HBPOA on the Association’s behalf the cost of LTC premiums not to exceed twenty-five dollars ($25.00) per month per covered members of the PMA. 3. The City and the Association agree that HBPOA contracts with an authorized LTD and LTC provider and that the City is not responsible for paying the cost of premiums and any expenses incurred for administering both programs. 4. The City and the Association agree that the PMA coverage for LTD insurance and LTC is authorized under the same existing conditions under which the HBPOA is authorized by the City to provide such coverage to its members. The City and the Association agree that in the event the HBPOA does not meet its obligation and reporting requirements to the City for PMA members, the City’s contribution amounts of thirty-eight dollars ($38.00) and/or twenty-five dollars ($25.00) may cease without retroactive payments. 202 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 9 5. The Association agrees that it will indemnify and hold harmless the City as well as all direct or indirect successors, officers, directors, heirs, predecessors, assigns, agents, insurers, employees, attorneys, representatives, and each of them, past and present, from and against any claims, lawsuits, penalties, interest, taxes, or liability of any kind whatsoever, which may result from the HBPOA sponsored and administered LTD insurance and LTC programs. E. Employee Welfare Benefit Trust Fund The City authorizes the HBPMA to participate in an employee welfare medical benefit trust fund program, called that PORAC Retiree Medical Trust, providing the following conditions are adhered to: 1. The City and HBPMA agree that the City shall not provide any contribution to the program. 2. The City shall withhold $100.00 monthly for each represented employee. Thereafter, said withholding shall be in an amount as designated by the HBPMA. Deductions shall be taken on the first two checks of each month. 3. HBPMA shall pay all associated expenses incurred for participation in the program. 4. Upon request, the HBPMA shall provide documentation to the City as follows: a. A copy of the in-force employee medical welfare benefit trust fund program; b. A statement certifying that funds collected are for employee welfare medical benefits for HBPMA represented employees only; c. A copy of the current program document as well as any changes of amendments, or written confirmation that there have been no changes as employee medical welfare benefit trust fund program provider; d. Verification of the funds submitted to the PORAC Retiree Med ical Trust by the HBPMA, and e. A statement certifying that the submitted funds are only being utilized to provide employee welfare medical benefit trust funds for participating members including members of the HBPMA. 5. City shall submit the withheld funds to the PORAC Retiree Medical Trust bi-weekly. 6. All Federal and State laws regarding employee medical welfare benefit trust funds coverage shall be followed. 203 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 10 7. HBPMA agrees that it will indemnify and hold harmless the City as well as all direct or indirect successors, officers, directors, heirs, predecessors, assigns, agents, insurers, employees, attorneys, representatives, and each of them, past and present, from and against any claims, lawsuits, penalties, interest, taxes, or liability of any kind whatsoever, which may result from the qualified employee welfare benefit trust fund program. ARTICLE VI -- BEREAVEMENT LEAVE Employees shall be entitled to bereavement leave not to exceed three (3) working days in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, registered domestic partner, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. In addition to the above, if an employee (who has been with the City for at least thirty (30) days) exhausts their paid bereavement leave, they are entitled to use up to two (2) additional days of bereavement leave for the death of a family member as defined above. This leave must be used within three (3) months from the date of death. Although this is not City-paid leave, employees may use any accrued paid leave that is otherwise available to the employee for this purpose. ARTICLE VII -- ADDITIONAL MANAGEMENT BENEFITS A. Take Home Vehicle Use 1. Employees must reside within thirty-five (35) miles of the City limits in order to be assigned a take home City vehicle. An employee assigned an unmarked vehicle is required to be able to report directly to work or any emergency situation, at any time, at the direction of the Chief of Police or his delegate. Use of an unmarked vehicle for more than minimal personal use is not authorized. B. Bilingual Pay Qualified employees who meet the criteria shall receive five percent (5%) of their base monthly rate of pay for bilingual skills paid on a bi -weekly basis. Human Resources will have written and oral tests designed and administered to test for qualifications. The qualifications will cover the more routine foreign language requirements in filling out crime reports, interviewing suspects and witnesses, and responding to the public on matters relating to an incident or other police action. 204 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 11 1. The languages included will be Spanish, Vietnamese and American Sign Language. Additional languages may be approved at the discretion of the Chief of Police. 2. Authorization of qualified employees for bilingual compensation will be based on the following: a. A need for the employee to use the language in the City to support the implementation of police operations. b. At the discretion of the Chief of Police, the number of employees qualified in each category may be limited based on department needs. 3. Successful completion of tests authorized by the Chief of Police will be required to qualify for bilingual pay for any of the languages. The City reserves the right to re-test at the Chief of Police’s discretion, no more frequently than once every twelve (12) months. C. Uniform Allowance 1. The City shall continue the Uniform Allowance in lieu of the City providing uniforms for employees. The uniform allowance is one thousand two hundred and seventy -five dollars ($1,275) per year for all employees and shall be paid in December. Employees hired after January 1st shall have their uniform allowance pro -rated for each month in which they were on active duty for at least one full shift. It is the mutual intent of the parties that this allowance shall be utilized solely for the purpose of replacing, repairing and maintaining uniforms and clothing worn in the line of duty. The City will continue to make initial issuance of required uniforms and replace uniforms and equipment damaged in the line of duty including safety equipment required by state law; City resolution or ordinance, or by order of the Chief of Police. 2. To the extent permitted by law, the City shall report (for classic members) to the CalPERS the uniform allowance paid as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). D. Meal and Mileage Allowance The parties agree to follow Policy AR 301 addressing meal and mileage allowance and incorporate it by reference in this MOU. 205 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 12 E. Effective Date of Additional Management Benefits All additional management benefits shall be effective the first full pay period following certification and verification as approved by the Chief of Police or designee. It is agreed that any PERSable benefits shall be reported to CalPERS; however, the treatment of any special pay under this provision as “pensionable compensation” shall be subject to CalPERS regulations. Where there is any conflict between the City’s treatment of any special pay and CalPERS, CalPERS’ determination shall prevail. ARTICLE VIII – CONTROLLED SUBSTANCE AND ALCOHOL TESTING The City maintains the right to conduct a controlled substance and alcohol test during working hours of any employee that it reasonably suspects is under the influence of alcohol or a controlled substance in the workplace, consistent with department policy. ARTICLE IX– LEAVE BENEFITS A. Anniversary Date For the purpose of computing vacation, an employee's anniversary date shall be the most recent date on which they commenced full-time City employment. B. General Leave: 1. Purpose – The purpose of annual General Leave is to provide a rest period, which will enable each employee to return to work physically and mentally refreshed, as well as for an illness or injury of the employee not otherwise covered under other provisions of law (e.g., Labor Code 4850, workers’ compensation laws, etc.). 2. Anniversary Date – For the purpose of computing General Leave, an employee’s anniversary date shall be the most recent date on which they commenced full-time City employment, unless otherwise provided in writing by agreement between the City and the employee upon initial hire or re-hire. 3. Annual General Leave Eligibility – All employees shall be entitled to use annual General Leave with pay except the following: a. Employees who have not completed six (6) months of continuous service with the City. However, employees with less than six (6) months of continuous service may, after 90 days, use up to 24 hours of General Leave for the purpose of an injury to or illness of themselves. 206 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 13 b. Employees who work less than full-time who are not permanent. However, employees who do not work full-time and are not permanent may, after 90 days, use up to 24 hours of General Leave for the purpose of illness, injury, or family sickness. c. Employees on leave of absence. 4. General Leave Accrual – Employees in the City’s service, having an average work week of forty (40) hours, shall accrue annual General Leave with pay in accordance with the following: a. For the first (1st) through the fourth (4th) year of continuous service , General Leave shall be accrued at the rate of one hundred and seventy six (176) hours per year (6.77 hours biweekly). b. For the fifth year (5th) and through the ninth (9th) year of continuous service, General Leave shall be accrued at the rate of two hund red (200) hours per year (7.69 hours biweekly). c. For the tenth (10th) year and through the fourteenth (14th) year of continuous service, General Leave shall be accrued at the rate of two hundred and twenty four (224) hours per year (8.62 hours biweekly) d. For the fifteenth (15th) year and thereafter of continuous service, General Leave shall be accrued at the rate of two hundred and fifty six (256) hours per year (9.85 hours biweekly). Table 4. PMA General Leave Annual Accrual Schedule Years of Service General Leave Accrual First through Fourth Year 176 Hours Fifth through Ninth Year 200 Hours Tenth through Fourteenth Year 224 Hours Fifteenth Year and Thereafter 256 Hours In computing eligibility for continuous service, for sworn law enforcement members of the unit, it shall include sworn law enforcement service at another law enforcement agency. 5. Use of General Leave: a. No employee shall be permitted to use General Leave in excess of actual time earned and General Leave shall not be accrued in excess of six hundred and forty (640) hours. General Leave use for vacations shall be taken only with permission of the Chief of Police (or their designee); however, the Chief of Police shall schedule all vacations 207 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 14 with due consideration for the wishes of the employee and particular regard for the needs of the department. If used as sick leave, employees must call in prior to their shift and provide a supervisor with notice that they are using General Leave due to illness or injury. b. General Leave accumulated in excess of the six hundred and forty (640) hour cap shall be paid at the base hourly rate of pay on the first payday following such accumulation. 6. General Leave Conversion to Pay During Employment – On or before the beginning of the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to one hundred and twenty (120) hours of accrued General Leave which will be earned in the following calendar year at the employee’s base rate of pay. The employee can elect to receive pay up to sixty (60) hours of General Leave in the pay period that includes July 15. The employee shall receive any remaining General Leave cash out to which they irrevocably elected to cash out in the pay period that includes December 1. However, if the employee’s General Leave balance is less than the amount the employee elected to cash out (in the prior calendar year), the employee will receive pay for the amount of leave the employee has accrued at the time of the cash out. 7. Transfer of the Value of General Leave at Separation – At the time of separation, the value of any unused earned General Leave (earned up to the last day of employment) will be transferred to either the employee’s deferred compensation account (up to the maximum permitted by law) or to the qualified medical retirement trust program on a pre-tax basis. The value of the each hour of General Leave wil l be the employee’s base rate of pay at separation. The employee must make the election for the transfer (either deferred compensation or the qualified medical retirement trust program) no later than the pay period prior to the employee’s last day of empl oyment. If no election is made, all unused earned General Leave will be transferred to the qualified medical retirement trust program upon separation. If the employee elects to place some of the General Leave into their deferred compensation account or reaches the maximum annual deferral into their deferred compensation account, the remaining amount will be transferred to the qualified medical retirement trust program. C. Leave Benefit Entitlements The City will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 208 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 15 The City shall comply with all State and Federal leave benefit entitlement laws. An employee on an approved leave shall be allowed to use earned Sick Leave, General Leave, and/or Exempt Compensatory Time for serious and non -serious family or personal health issues. D. Voluntary Catastrophic Leave Donation Program Under certain conditions, employees may donate leave time to a nother employee in need. The program is outlined in Exhibit D of this MOU. ARTICLE X -- SICK LEAVE PAY OUT A. Employees who still have previously earned sick leave shall be entitled to the following Sick Leave cash out plan: Upon termination, all employees shall be paid at their then current base rate of pay, for twenty-five percent (25%) of unused, earned Sick Leave to four hundred eighty hours (480) hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of four hundred eighty (480) hours, but not to exceed seven hundred twenty (720) hours. B. No employee shall be paid at termination for more than seven hundred twenty (720) hours of unused, accumulated sick leave. ARTICLE XI -- HOLIDAYS A. City Paid Holidays The City shall provide the following paid holidays in a calendar year: 1. New Year's Day (January 1) 2. Martin Luther King Day (third Monday in January) 3. Washington's Birthday (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday, or the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. 209 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 16 B. Holiday in Lieu Pay – Effective January 1, 2022 Employees earn holiday in lieu pay. This means that employees shall be required to work on all holidays unless they use another form of leave (e.g., General Leave) to take the day off on a holiday. Employees shall be paid each biweekly payroll one twenty-sixth (1/26) of the total one hundred and twenty (120) holiday hours earned for the year. Employees who are required to work on a recognized City holiday shall receive Holiday Pay in addition to the Holiday In-Lieu Pay set forth above equal to fifty percent (50%) of their regular rate of pay for all time actually worked from 12:00 a.m. through 11:59 p.m. on the recognized holiday. The parties agree, to the extent permitted by law, the compensati on in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) and Section 571.1(b)(4) Holiday Pay. ARTICLE XII – WORK SCHEDULE/ EXEMPT COMPENSATORY TIME AND EXECUTIVE LEAVE A. Work Schedule 1. 4-10 Plan Unless designated elsewhere, unit employees are entitled to work four (4) consecutive days per week, ten (10) hours each day, meal times to be included during the ten (10) hour shift, with three (3) consecutive days off. 2. 7-11.5 Plan The “7-11.5” work schedule will be implemented for designated employees of the Patrol Bureau only and shall consist of a fourteen (14) day work period. a. Workday A workday for employees assigned to the 7-11.5 work schedule will consist of eleven (11) hours and twenty-five (25) minutes of work, meal times to be included in the shift. b. Work Period For those employees working eleven (11) hours and twenty-five (25) minutes a day, the “work period” will consist of two (2) consecutive weeks with three (3) consecutive shifts of eleven (11) hours and twenty-five (25) minutes in one (1) week and four (4) consecutive shifts of eleven (11) hours and twenty-five (25) minutes in the second week. The total hours of these two (2) consecutive weeks shall be considered e qualing eighty (80) hours. The two (2) week cycle then repeats itself. 210 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 17 B. Deductions from Pay, Exempt Compensatory Time and Executive Leave Employees are considered ‘exempt’ as defined by the Fair Labor Standards Act (FLSA) as such, deductions from pay may be limited in certain circumstances. However, deductions from pay may be provided in 29.C.F.R. 541.602(b) including unpaid disciplinary suspensions of one or more full days imposed in good faith for violating workplace conduct rules. Such suspension shall be made pursuant to written policy applicable to all employees. An employee is eligible for Exempt Compensatory Time as follows: 1. When such employees are required to fill a full, or partial work shift that is not part of the employee's regular work schedule. Partial shift shall mean five (5) hours or more of a work shift. In such an instance, the employee may be compensated at the rate of one and one-half (1 ½) hours for each hour worked in the form of pay or Exempt Compensatory Time (i.e. non FLSA Exempt Compensatory Time). Such time shall not accrue in excess of one hundred sixty (160) hours. 2. Cash Out of Compensatory Time Off - Twice each year, employees may, at their option, be paid for their compensatory time off. Payment when requested under this section shall be at the employee’s regular rate of pay in effect at the time th e request is made. On or before the beginning of the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued compensatory time off which will be earned in the following calendar year. The employee can elect to receive cash for their accrued compensatory time off up to two times per calendar year, and in a cumulative amount not to exceed the number of hours the employee irrevocably elected to cash out in the prior year. However, if the employee’s compensatory time off leave balance in the pay period containing December 15th is less than (the balance of) the total amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out. Compensatory time off which is cashed out will be paid at the employee’s regular rate of pay. C. Executive Leave Employees are entitled to seventy (70) hours of Executive Leave per calendar year. Unused Executive Leave shall not carry over to the next calendar year. 211 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 18 ARTICLE XIII -- SPECIAL PAY A. Advanced POST Certificate –Upon verification of having earned an Advanced POST Certificate, effective June 24, 2023, an employee shall be paid eight percent (8%) of their base hourly rate of pay. The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1(b)(2) Peace Officer Standard Training (POST) Certificate Pay. B. Educational Incentive Pay –Upon earning a BA/BS Degree, an employee shall be paid six percent (6%) of their base hourly rate of pay. The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1(b)(2) Educational Incentive Pay. C. Incentive Program: Executive Development An employee who completes one of the following shall receive five percent (5%) of their base hourly rate of pay: 1. The FBI National Academy; or 2. The POST Command College; or 3. The California Police Chief’s Executive Leadership Institute at Drucker School of Management AND possession of a Master’s Degree AND two (2) years’ management experience; or 4. Any member having a minimum of two years’ experience in the position of Lieutenant and/or Captain who have attained a Master’s degree and complete a department-approved leadership course. In the event that one of the executive development programs becomes unavailable to the Association, or new program(s) becomes available, the City and the Association agree the Chief of Police will substitute/add an appropriate program(s). The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1(b)(2) Educational Incentive Pay. D. Longevity Pay: 1. Members of this unit with a minimum of 3 years tenure as a sworn employee with the Huntington Beach Police Department immediately preceding the appointment to a PMA position and with 10+ years of sworn law enforcement 212 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 19 experience, but fewer than 20 years of sworn law enforcement experience shall receive a total of five percent (5%) longevity pay. 2. Effective June 24, 2023, members of this unit with a minimum of 3 years tenure as a sworn employee with the Huntington Beach Police Department immediately preceding the appointment to a PMA position and with 20+ years of sworn law enforcement experience shall receive a total of sixteen percent (16%) longevity pay. i. There shall be no pyramiding of this special pay. Unit members may only receive one (1) longevity pay under this provision, either five percent (5%) or sixteen percent (16%), but not both. 3. Only sworn law enforcement experience as defined by California Penal Code Sections 830.1 and 830.2 or the out-of-state equivalent as determined by the Chief of Police shall be included as qualified sworn law enforcement experience in the calculation of longevity. 4. The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(1) and Section 571.1(b)(1) Longevity Pay. E. Acting Assignment: 1. When a member of this unit is assigned by the Chief of Police to work in a position of higher classification or pay range for a continuous period of twenty eight (28) or more calendar days, they shall retroactively be compensated “acting” pay in the amount of ten percent (10%) for all time worked in the acting assignment, beginning from the first day assigned The assigned employee must submit a memorandum to the Chief of Police indicating the date of assignment and hours assigned before compensation can be paid. 2. Nothing in this section shall limit the Chief of Police, to assign employees temporarily to a position of higher classification for a period of less than twenty- eight (28) days for operational needs. 3. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for classic members and shall be reported as such pursuant to Title 2 CCR 571 (a) 3 Temporary Upgrade Pay. ARTICLE XIV-- MANAGEMENT RIGHTS The City and the Chief of Police retain all rights, powers and authority to manage and direct the performance of police services and the workforce, except as modified by the Memorandum of Understanding. Nothing herein shall change the City's obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of 213 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 20 employment or be construed as granting the City or the Chief of Police the right to make unilateral changes in wages, hours and terms and conditions of employment. The parties agree that the City has the right to unilaterally make decisions on all matters that are outside the scope of bargaining. Such matters include, but are not limited to, consideration of the merits, necessity, level or organization of police services, staffing requirements, extra duty assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, reasonable work and safety rules and regulations. ARTICLE XV– MISCELLANEOUS PROVISIONS A. Employer-Employee Relations Resolution (EERR) 1. The following amendments to the EERR shall apply: a. Modification of Section 7 – Decertification and Modification i. The City and the Association desire to maintain labor stability within the representational unit to the greatest extent possible, consistent with the employee's right to select the representative of their own choosing. For these purposes, the parties agree that this Agreement shall act as a bar to appropriateness of this unit and the selection of the representative of this unit, except during the month of August prior to the expiration of this Agreement. Changes in bargaining unit shall not be effective unt il expiration of the MOU, except as may be determined by the Personnel Commission pursuant to the procedures outlined below. This provision shall modify and supersede the time limits, where inconsistent, contained in Section 7 of the current Employer-Employee Relations Resolution of the City of Huntington Beach. ii. The City and the Association have agreed to a procedure whereby the City, by and through the Human Resources Director, would be entitled to propose a Unit Modification. The Association and the City agree to jointly recommend a modification of the City of Huntington Beach Employer-Employee Relations Resolution (Resolution Number 3335) upon the City’s having completed its obligation to meet and confer on this issue with all other bargaining units. iii. 7-3 Human Resources Director’s Motion of Unit Modification – The Human Resources Director may propose during the same period for filing a Petition for Decertification that an established unit be modified in accordance with the following procedure: iv. The Human Resources Director shall give written notice of the proposed Unit Modification to all employee organizations that may be affected by the proposed change. Said written notification shall contain the Human 214 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 21 Resources Director’s rationale for the proposed change including all information which justifies the change pursuant to the criteria established in Section 6-5 for Appropriateness of Units. Additionally, the Human Resources Director shall provide all affected employee organizations with all correspondence, memoranda, and other documents, which relate to any input regarding the Unit Modification which may have been received by the City or from affected employees and/or sent by the City to affected employees; v. Following receipt of the Human Resources Director’s Proposal for Unit Modification any affected employee organization shall be afforded not less than thirty (30) days to receive input from its members regarding the proposed change and to formulate a written and/or oral response to the Motion for Unit Modification to the Personnel Commission; vi. The Personnel Commission shall conduct a noticed Public Hearing regarding the Motion for Unit Modification at which time all affected employee organizations and other interested parties shall be heard. The Personnel Commission shall make a determination regarding the proposed Unit Modification which determination may include a- granting of the motion, a denying of the motion, or other appropriate orders relating to the appropriate creation of Bargaining Units. Fol lowing the Personnel Commission's determination of the composition of the appropriate Unit or Units, it shall give written notice of such determination to all affected employee organizations; vii. Any party who chooses to appeal the decision of the Personnel Commission is entitled to appeal in accordance with the provision of Section 14-4 of Resolution Number 3335. 2. During the term of this MOU, the City and the Association agree to update the Employer-Employee Relations Resolution to reflect current State law. B. Weapons Vesting Employees assigned a weapon shall be vested with ten percent (10%) ownership per year so that ten (10) years after assignment of the weapon to the employee, they shall be fully vested with ownership. C. Association Business An allowance of fifty (50) hours per year shall be established for the purpose of allowing authorized representatives of the Association to represent members in their employment relations. D. Collection of Payroll Over Payments In the event that a payroll over payment is discovered and verified, and considering all reasonable factors including the length of time that the over payment was made 215 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 22 and if and when the employee could have reasonably known about such over payment, the City will take action to collect from the employee the amount of over payment(s). Such collection shall be processed by payroll deduction over a reasonable period of time considering the total amount of over payment. In the event the employee separates from employment during the collection period, the final amount shall be deducted from the last payroll check of the employee. If applicable, the balance due from the employee shall be communicated upon employment separation if the last payroll check does not sufficiently cover the amount due the City. It shall be the responsibility of the employee and the City to periodically monitor the accuracy of compensation payments or reimbursements due to the possibility of a clerical oversight or error. The City reserves the right to also collect compensation over payments caused by or the result of misinterpretation of a pay provision by non-authorized personnel. The interpretation of all pay provisions shall be administered by the City Administrator or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice. E. Direct Deposit All employees are required to utilize direct deposit of payroll checks. F. Administrative Appeal Procedure In compliance with Government Code 3304(b), the Administrative Appeal Procedure for all Public Safety Officers is referenced in Exhibit C of this MOU. G. Grievance Hearing Cost Sharing Grievance hearing costs shall be paid equally by the City and the Association. The parties agree that under no circumstances shall the grievant(s) be required to pay any part of the grievance hearing costs. H. Alternative Dispute Resolution Agreement The ADR agreement between the City and PMA as executed on March 7, 2013, is herein referenced as Exhibit E. ARTICLE XVI -- TERM OF MEMORANDUM OF UNDERSTANDING (MOU) This MOU shall be in effect for a term commencing on July 1, 2023 through June 30, 2026. Except as expressly provided herein, no further improvements or changes in the salaries and monetary benefits of th e employees shall take effect during the term of this Agreement unless agreed upon by the City and the Association. 216 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 23 It is understood that the parties may agree to meet and confer regarding non -monetary matters such as Personnel Rule changes. Any matters agreed upon resulting from such meeting and conferring will be the subject of a separate addendum to this Agreement. This MOU constitutes the entire agreement of the parties as to the changes in wages, hours, and other terms and conditions of employment of employees covered hereunder for the term hereof. 217 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 24 ARTICLE XVII – CITY COUNCIL APPROVAL IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this ____ day of ____________, 2023 CITY OF HUNTINGTON BEACH HUNTINGTON BEACH POLICE MANAGEMENT ASSOCIATION By: By: Al Zelinka City Manager Kevin Johnson PMA President By: By: Travis Hopkins Assistant City Manager Brian Smith PMA Vice President By: Theresa St. Peter Interim Human Resources Director APPROVED AS TO FORM: By: Michael E. Gates City Attorney 218 POLICE MANAGEMENT ASSOCIATION PMA MOU July 1, 2023 through June 30, 2026 25 LIST OF EXHIBITS EXHIBIT A SALARY SCHEDULE EXHIBIT B SERVICE CREDIT SUBSIDY PLAN EXHIBIT C ADMINISTRATIVE APPEAL PROCEDURE EXHIBIT D VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM EXHIBIT E ALTERNATIVE DISPUTE RESOLUTION AGREEMENT 219 POLICE MANAGEMENT ASSOCIATION EXHIBIT A – SALARY SCHEDULE PMA MOU July 1, 2023 through June 30, 2026 26 Job No Job Description Range A B C D E F G 234 Police Lieutenant 237 233 Police Captain 250 Effective the Beginning of the Pay Period Including July 1, 2023 Job No Job Description Range A B C D E F G 234 Police Lieutenant 237 61.56 64.64 67.87 71.27 74.83 78.57 82.50 233 Police Captain 250 70.06 73.57 77.24 81.11 85.16 89.42 93.89 Effective the Beginning of the Pay Period Including July 1, 2024 Job No Job Description Range A B C D E F G 234 Police Lieutenant 237 64.64 67.87 71.27 74.83 78.57 82.50 86.62 233 Police Captain 250 73.57 77.24 81.11 85.16 89.42 93.89 98.59 Effective the Beginning of the Pay Period Including July 1, 2025 Job No Job Description Range A B C D E F G 234 Police Lieutenant 237 67.87 71.27 74.83 78.57 82.50 86.62 90.95 233 Police Captain 250 77.24 81.11 85.16 89.42 93.89 98.59 103.51 220 POLICE MANAGEMENT ASSOCIATION EXHIBIT B – SERVICE CREDIT SUBSIDY PLAN PMA MOU July 1, 2023 through June 30, 2026 27 An employee who has retired from the City and meets the plan participation requirements shall receive a monthly Service Credit Subsidy to reimburse the retiree for the payment of qualified medical expenses incurred for the purchase of medical insurance. Plan Participation Requirements 1. At the time of retirement the employee has a minimum of ten (10) years of continuous regular (permanent) City service or is granted an industrial disability retirement; and 2. At the time of retirement, the employee is employed by the City; and 3. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees’ Retirement System (CalPERS). The City’s obligation to pay the Service Credit Subsidy as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: a. On the first of the month in which a retiree or dependent reaches age sixty-five (65) or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City’s obligation to pay Service Credit Subsidy may be adjusted downward or eliminated. b. In the event of the death of an eligible employee, whether retired or not, the amount of the Service Credit Subsidy benefit which the deceased employee was eligible for at the time of their death shall be paid to the surviving spouse or dependent for a period not to exceed twelve (12) months from the date of death. 4. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for Service Credit Subsidy begins after an employee has completed ten (10) years of continuous regular (permanent) service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of their rehire in accordance with the City’s Personnel Rules. To receive the Service Credit Subsidy, retirees are required to purchase medical insurance from City sponsored plans. The City shall have the right to require any retiree (annuitant) to annually certify that the retiree is purchasing medical insurance benefits. 221 POLICE MANAGEMENT ASSOCIATION EXHIBIT B – SERVICE CREDIT SUBSIDY PLAN PMA MOU July 1, 2023 through June 30, 2026 28 5. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of one hundred twenty dollars ($120). Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. 6. Service Credit Subsidy Payment shall not exceed the dollar amount, which is equal to the qualified medical expenses incurred for the purchase of City sponsored medical insurance. 7. Maximum Monthly Service Credit Subsidy Payments All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), continuous years of regular (permanent) service, shall be entitled to maximum monthly Service Credit Subsidy by the City for each year of completed City service as follows: Maximum Service Credit Subsidy Retirements After: Years of Service Service Credit Subsidy 10 $121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 The Service Credit Subsidy will be reduced every January 1st by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). Article IV.A.4.a. provides an example of expected reductions per retiree per month. 222 POLICE MANAGEMENT ASSOCIATION EXHIBIT B – SERVICE CREDIT SUBSIDY PLAN PMA MOU July 1, 2023 through June 30, 2026 29 8. Medicare: a. All persons are eligible for Medicare coverage at age sixty-five (65). Those with sufficient credited quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age sixty-five (65), but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, the participant pays for Part B of Medicare. b. When a retiree and their spouse are both sixty-five (65) or over, and neither is eligible for paid Part A of Medicare, the Service Credit Subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. c. When a retiree at age sixty-five (65) is eligible for paid Part A of Medicare and their spouse is not eligible for paid Part A of Medicare, the spouse shall not receive the subsidy. When a retiree at age sixty-five (65) is not eligible for paid Part A of Medicare and their spouse who is also age sixty-five (65) is eligible for paid Part A of Medicare, the subsidy shall be for the retiree’s Part A only. 9. Cancellation: a. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: i. Coverage for a retiree under the Service Credit Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age sixty- five (65). ii. At age sixty-five (65) retirees are eligible to make application for Medicare. Upon being considered “eligible to make application,” whether or not application has been made for Medicare, the Service Credit Subsidy Plan will be eliminated. 223 POLICE MANAGEMENT ASSOCIATION EXHIBIT C –ADMINISTRATIVE APPEAL PROCEDURE PMA MOU July 1, 2023 through June 30, 2026 30 1. Authority a. Personnel Rule 20 of the existing City Personnel Rules provides an administrative procedure for appealing any discipline that involves a loss in pay. Rule 20 applies to all permanent City employees. b. Government Code Section 3304(b) allows that an appeal procedure be made available to all “Public Safety Officers” (as defined at Government Code § 3301) for the following “punitive actions:” (i) official reprimands; (ii) punitive transf ers that do not involve a loss of pay, and (iii) non -punitive transfers that does result in a loss of pay. Such actions will be collectively referred to as an “Action.” Case law allows such an appeal procedure to be more limited than afforded under Rule 20. c. This administrative appeal procedure is intended to establish the Administrative Arbitration Panel to hear appeals from Public Safety Officers. This administrative appeal procedure only applies to an “Action” as defined above in “b.” It does not apply to a non-punitive transfer imposed on a Public Safety Officer that does not result in a loss of pay. (Government Code §3304(b). 2. Administrative Arbitration Panel a. Appeals will be heard by a neutral fact finding group of three (3) City employees. b. Only active full-time employees of the City of Huntington Beach Police Department may serve on the Administrative Arbitration Panel. The Panel is comprised of one (1) employee selected by the Association one (1) employee selected by the Chief of Police, and the third employee selected by mutual agreement between the first two (2) Panel members. If no agreement can be reached, the “strike-out” process will be used to select the third Panel member, with the Association and the Chief each submitting four (4) names for consideration. A coin toss will determine the party striking first with the Association reserving the right to call the coin or defer. c. The panel member selected by the Chief of Police, the Association and the panel member selected by the Chief of Police and the Association shall each select one (1) alternate to the Panel to serve in place of a Panel member who has direct involvement in the punitive action or is a party to the issue. d. A Panel member will serve one (1) year. e. If the Panel member selected to serve on an Administrative Arbitration Panel has direct involvement in the punitive action or is a party to the issue, they will be replaced by the alternate. 224 POLICE MANAGEMENT ASSOCIATION EXHIBIT C –ADMINISTRATIVE APPEAL PROCEDURE PMA MOU July 1, 2023 through June 30, 2026 31 3. Appeal Notice a. An appealing Officer has five (5) calendar days from date of receipt of an “Action” to file a written appeal with the Chief of Police; otherwise, the “Action” shall stand as issued with no further rights to appeal. b. If an Officer chooses not to appeal an “Action,” they may submit a written rebuttal within thirty (30) days from date of receiving the “Action.” The written rebuttal will be filed with the “Action” in the Officer’s official personnel file. 4. Scheduling of Hearing Upon receipt of the written appeal notice, the Chief of Police is required to immediately request the Administrative Arbitration Panel to convene for a hearing. The Administrative Arbitration Panel is required to convene within thirty (30) days of receiving notice from the Chief of Police. 5. Hearing Procedure a. All hearings shall be closed to the public unless the disciplined Officer requests a public hearing. b. All hearings shall be tape-recorded and may be transcribed. c. The Administrative Arbitration Panel shall hear testimony from the appealing Officer and the Department (specifically, the Officer who investigated the conduct that led to the Written Reprimand). Testimony shall not exceed one (1) hour from each side and an additional fifteen (15) minutes shall be given to each for rebuttal. The Department shall be heard first. d. If an appealing Officer wishes to submit a written argument in lieu of oral testimony, the Officer may do so provided that the opposing party is notified. The written testimony may not exceed one thousand five hundred (1,500) words. The written testimony must be submitted to the Administrative Arbitration Panel and the Chief of Police by no later than three (3) days in advance of the scheduled hearing. e. There is no right to sworn testimony, subpoenas, cross -examination or representation by third parties, including attorneys, at the hearing. f. In all “Actions” involving punitive discipline, the burden of proof shall be on the Department to show by a preponderance of the evidence that just cause exists for imposing discipline. In all non-punitive “Actions” (e.g., a non-punitive transfer that results in a loss of pay), the burden of proof shall be on the Department to show by a preponderance of the evidence that reasonable grounds exist for the transfer. 225 POLICE MANAGEMENT ASSOCIATION EXHIBIT C –ADMINISTRATIVE APPEAL PROCEDURE PMA MOU July 1, 2023 through June 30, 2026 32 6. Rendering of Decision by the Administrative Arbitration Panel a. At the conclusion of the hearing, the Administrative Arbitration Panel shall deliberate in closed session. b. The decision of the Administrative Arbitration Panel is binding with no further rights to appeal. c. The decision of the Administrative Arbitration Panel must be issued in writing to the appealing Officer within seven (7) calendar days from the conclusion of the hearing. d. The member of the Administrative Arbitration Panel who was selected by the Association and the Chief of Police shall be responsib le for preparing and distributing the decision with a copy to both parties. e. The decision shall include the following: Sustained (“Action” stands) Not Sustained (“Action” does not stand) f. In the event an Officer’s “Action” is Sustained, the Officer may, within five (5) calendar days from the date of the Administrative Arbitration Panel’s decision, file a written rebuttal. The written rebuttal will be filed with the “Action” in the employee’s official personnel file, along with the tape recording of the hearing. 226 POLICE MANAGEMENT ASSOCIATION EXHIBIT D - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM PMA MOU July 1, 2023 through June 30, 2026 33 Voluntary Catastrophic Leave Donation Program Guidelines 1. Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either; return to work, long-term disability, or medical retirement. Employees who accrue Vacation, General Leave or Exempt Compensatory Time may donate such leave to another employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of Vacation, General, or Sick Leave. 2. Definitions Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the employee or an employee's family member. Family Member - For the purposes of this policy, the definition of family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner, grandchild, grandparent, sibling and in-laws). 3. Eligible Leave Accrued Exempt Compensatory Time, Vacation , or General Leave hours may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Permanent employees who accrue Vacation or General Leave may donate such hours to eligible recipients. Exempt Compensatory Time accrued may also be donated. An eligible recipient is an employee who: Accrues Vacation or General Leave; Is not eligible for receiving disability benefits or Workers' Compensation payments; and Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted into a dollar amount based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient’s hourly wage. An employee needing leave will complete a Leave Request Form and submit it to the Department Director for approval. The Department Director will forward the 227 POLICE MANAGEMENT ASSOCIATION EXHIBIT D - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM PMA MOU July 1, 2023 through June 30, 2026 34 form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. Employees wanting to make donations will submit a Leave Donation Form to the Finance Department (payroll). All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. 6. Other Please contact the Human Resources Department on questions regarding staff participation in this program. 228 POLICE MANAGEMENT ASSOCIATION EXHIBIT D - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM PMA MOU July 1, 2023 through June 30, 2026 35 Please return this form to the Human Resources Office for processing. Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated Vacation, General Leave or Exempt Compensatory Time. MY SIGNATURE CERTIFIES THAT: A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type: Last, First, MI) Work Phone: Department: Job Title: Employee ID#: Requester Signature: Date: Department Director Signature of Support: Date: Human Resources Department Use Only End donation date will bridge to: Long Term Disability Medical Retirement beginning Length of FMLA leave ending Return to work End donation date: Human Resources Director Signature: Date signed: 229 POLICE MANAGEMENT ASSOCIATION EXHIBIT D - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM PMA MOU July 1, 2023 through June 30, 2026 36 Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete Donor Name: (Please Print or Type: Last, First, MI) Work Phone: Donor Job Title: Type of Accrued Leave: Vacation Compensatory Time General Leave Number of Hours I wish to Donate: Hours of Vacation Hours of Exempt Compensatory Time Hours of General Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued Vacation, Exempt Compensatory Time or General Leave hours to the Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: Date: Please submit to Payroll in the Finance Department. 230 EXHIBIT E – ALTERNATIVE DISPUTE RESOLUTION AGREEMENT PMA MOU July 1, 2023 through June 30, 2026 37 LABOR MANAGEMENT WORKERS’ COMPENSATION ALTERNATIVE DISPUTE RESOLUTION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE POLICE MANAGEMENT ASSOCIATION This Labor Management Alternate Dispute Resolution Agreement (“Agreement”) entered into by and between the City of Huntington Beach (“City”) and the Police Management Association (“PMA”) is created pursuant to California Labor Code Section 3201.7(a)(3)(c). Nothing in this Agreement diminishes the entitlement of an employee to compensation payments for total or partial disability, temporary disability, or medical treatment fully paid by the employer as otherwise provided in Division 4 of the Labor Code. Nothing in this Agreement denies to any employee the right to representation by counsel at all stages during the alternative dispute resolution process. Article I. Purpose The purposes of this Agreement are: 1. To provide active employees claiming compensable injuries under Division 4 of the California Labor Code (“Workers’ Compensation Law”) with an expedited procedure to resolve medical disputes in accordance with Article IV, Section D of this Agreement to facilitate their prompt return to work at either full duties or a transitional duty assignment; 2. To provide retirees claiming a presumptive injury as defined by California Labor Code (hereinafter “Labor Code”) section 3212 et seq. with an expedited procedure to resolve medical disputes in accordance with Article IV, Section D of the Agreement; 3. To reduce the number and severity of disputes between the City and covered employees, when those disputes relate to workers’ compensation; and 4. To provide workers’ compensation coverage in a way that improves labor management relations, improves organizational effectiveness, and reduces costs to the City. These purposes will be achieved by utilizing an exclusive list of medical providers to be the sole and exclusive source of medical evaluations for disputed issues surrounding covered employees in accordance with California Labor Code Section 3201.7©. Now, therefore, in consideration of the mutual terms, covenants and conditions herein, the parties agree as follows: 231 EXHIBIT E – ALTERNATIVE DISPUTE RESOLUTION AGREEMENT PMA MOU July 1, 2023 through June 30, 2026 38 Article II. Term of Agreement The City and PMA enter into this Agreement with the understanding that the law authorizing this Agreement is new, untested and evolving. The parties further understand that this Agreement governs a pilot program and that it will become effective after it is executed by the parties, submitted to the Administrative Director of the State of California, Department of Industrial Relations, Division of Workers’ Compensation in accordance with Title 8, California Code of Regulations, Section 10202(d), and accepted by the Administrative Director as evidenced by the Director’s letter to the parties indicating approval of the Agreement. Any claim arising from an industrial injury sustained before the termination of this Agreement shall continue to be covered by the terms of this Agreement, until all medical issues related to the pending claim are resolved. Any medical issue resolved under this Agreement shall be final and binding. The parties reserve the right to terminate this Agreement at any time, by mutual agreement or by act of the legislature. The terminating party must give thirty (30) days written notice to the other party. The parties agree to meet and confer in good faith to try and resolve the issues underlying the termination during the thirty day period prior to the termination of the Agreement. Upon termination of this Agreement, the parties shall become fully subject to the provisions of the California law to the same extent as they were prior to the implementation of this Agreement, except as otherwise specified herein. Article III. Scope of Agreement A. This Agreement applies only to injuries, as defined by Workers’ Compensation Law, claims by 1) active employees; 2) retirees who claim a presumptive injury as defined by California Labor Code Section 3212 et seq.; and 3) active employees who file a claim and subsequently retire before the claim is resolved. Retirees who filed claims while they were active employees are covered under this Agreement only for the purposes of petitions to reopen a pre-existing claim unless covered under A(2). This Agreement does not apply to any other retired employees. This Agreement does not cover post-retirement amendments to active claims. B. Employees who are covered under this Agreement remain covered during the entire period of active employment. C. Injuries occurring and claims filed after termination of this Agreement are not covered by this Agreement. D. This Agreement is restricted to establishing an exclusive list of medical providers to be used for medical dispute resolution for the above -covered employees in accordance with California Labor Code Section 3201.7(c). 232 EXHIBIT E – ALTERNATIVE DISPUTE RESOLUTION AGREEMENT PMA MOU July 1, 2023 through June 30, 2026 39 Article IV. Medical Provider A. This Agreement does not constitute a Medical Provider Network (“MPN”). Physicians who act as a covered employee’s independent medical examiner (“IME”) under this Agreement shall not act as the same employee’s treating physician even if the physician has been pre-designated as the employee’s treating physician, unless otherwise mutually agreed by the parties. Pre-designation of a physician must comply with the requirements set forth in Labor Code section 4600(d)(1). B. All employees with a disputed medical issue as described below in Section D must be evaluated by an approved physician from the exclusive list of approved medical providers. Said physician will serve as an IME. If the IME needs the opinion of a different specialist, the IME shall refer the employee to a physician of the IME’s choice even if that doctor is not on the approved list. The exclusive list of approved medical providers will be established when the Agreement has been approved by all parties. C. The exclusive lists of approved medical providers shall include the specialties as agreed upon by the parties. D. An IME shall be used for all medical disputes that arise in connection with a workers’ compensation claim including but not limited to determination of causation, the nature and extent of an injury, the nature and extent of permanent disability and apportionment, work restrictions, ability to return to work, including transitional duty, future medical care, and resolution of all disputes arising from utilization review, including need for spinal surgery pursuant to Labor Code section 4062(b). The parties will use the originally chosen IME for all subsequent disputes under this Agreement. In the event that said IME is no longer available, then the parties shall utilize the next specialist on the list pursuant to Article IV G d (below). The IME process will begin when either party gives the other written notice of an objection. Objections from the City will be sent to the employee with a copy to the employee’s legal representative if represented and a copy to PMA. Objections from the employee or employee’s legal representative will be sent to the employee’s assigned Claims Examiner with a copy to the Claims Manager. Objections will be sent within thirty days of receipt of a medical report or a utilization review decision. A letter delaying decision of the claim automatically creates a dispute. A subsequent acceptance of the claim and/or resolution of the dispute issue eliminates the need for completion of the dispute resolution process set forth in this Agreement. E. The exclusive list of approved medical providers shall serve as the exclusive source of medical-legal evaluations as well as all other disputed medical issues arising from a claimed injury. F. The parties hereby agree that from tim e to time the exclusive list of approved medical providers may be amended. For either party to add an IME to the exclusive list of medical providers, the party must provide notice, in writing, to the other party 233 EXHIBIT E – ALTERNATIVE DISPUTE RESOLUTION AGREEMENT PMA MOU July 1, 2023 through June 30, 2026 40 of its intent to add a physician to the list. Absent a written objection to the other party within thirty (30) calendar days of receipt of the written proposal, the addition will be made. In the event there is an objection, the physician will not be added to the list. A physician may only be deleted from the exclusive list of medical providers if they breach the terms and conditions of the contract with the City or by mutual agreement of the parties. G. Appointments 1. The Claims section of the Workers’ Compensation Division shall make appointment(s) with the IME within ten days of the date of the objection and/or notification of delay for employees covered under this Agreement. 2. The employee shall be responsible for providing the Claims staff with their work schedule prior to an appointment being made so that appointments can be made during an employee’s nonworking hours or the first or last hour of their workday. The amount of time allotted for hours spent at a physician’s appointment during working hours will be subject to verification and will be allowed accordingly. 3. Mileage reimbursement to covered employees shall be consistent with City policy and in accordance with Labor Code Section 4600 (e)(2) unless transportation is provided by the City. 4. For purposes of appointments, the Claims staff will select the IME’s by starting with the first name from the exclusive list of approved medical providers within the pertinent specialty, and continuing down the list, in order, until the list is exhausted, at which time the Claims staff will resum e using the first name on the list. 5. The City is not liable for the cost of any medical examination used to resolve the parties’ disputes governed by this Agreement where said examination is furnished by a medical provider that is not authorized by this Agr eement. Medical evaluations cannot be obtained outside of this Agreement for disputes covered by this Agreement. 6. Both parties shall be bound by the opinions and recommendation of the IME selected in accordance with the terms of this Agreement. Article V. Discovery A. Employees covered by this Agreement shall provide the Claims staff with fully executed medical, employment and financial releases and any other documents reasonably necessary for the City to resolve the employee’s claim, when requested. B. The parties agree they have met and conferred on the language of the medical/financial/employment releases to be used under this Agreement. If said releases cause undue delay and/or unforeseen adverse impact(s) to the City 234 EXHIBIT E – ALTERNATIVE DISPUTE RESOLUTION AGREEMENT PMA MOU July 1, 2023 through June 30, 2026 41 and/or the PMA and/or its members, then either party may request a meet and confer regarding said under delay and/or adverse impact(s). The parties shall meet and confer within 30 days of a party’s request to meet and confer. C. Employees shall cooperate in providing a statement. D. This Agreement does not preclude a formal deposition of the applicant or the physician when necessary. Attorney’s fees for employee depositions shall be covered by Labor Code section 5710. There will be no attorney’s fees for doctor’s depositions. Article VI. General Provisions A. The Agreement constitutes the entire understanding of the parties and supersedes all other Agreements, oral or written, with respect to the subject matter in this Agreement. B. This Agreement shall be governed and construed pursuant to the laws of the State of California. C. This Agreement, including all attachments and exhibits, shall not be amended, nor any provisions waived, except in writing, signed by the parties which expressly refers to this Agreement. D. If any portion of this Agreement is found to be unenforceable or illegal the remaining portions shall remain in full force and effect. E. Notice required under this Agreement shall be provided to the parties as follows: F. In the event that there is any legal proceeding between the parties to enforce or interpret this Agreement or to protect or establish any rights or remedies hereunder, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney’s fees 235