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HomeMy WebLinkAbout2023-07-18 Agenda PacketIN-PERSON PUBLIC PARTICIPATION: Members of the public are welcome to attend City Council meetings in person. Alternate ways to view meetings live or on-demand include: livestreamed on HBTV Channel 3 (replayed on Wednesday at 10:00 a.m. and Thursday 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 welcome 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 Tuesday, July 18, 2023 Special Meeting of the Housing Authority 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 July 18, 2023City Council/Public Financing Authority 5:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns CITY COUNCILMEMBER COMMENTS (3-Minute Time Limit) - The Mayor will facilitate a voluntary opportunity for members of the Huntington Beach City Council to individually make brief comments to the public. Please note that the Brown Act does not allow for lengthy comments, discussion, or action on topics that are not on the agenda. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3-Minute Time Limit) At this time, the City Council will receive comments from members of the public regarding any topic, including items on the Study Session and/or Closed Session agendas. Individuals wishing to provide a comment on item(s) may do so in person by filling out a Request to Speak form delivered to the City Clerk. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time allowance. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. RECESS TO CLOSED SESSION CLOSED SESSION 23-6091.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Pacific Airshow, LLC v. City of Huntington Beach and Kim Carr; OCSC Case No. 30-2022-01287749. 23-6322.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). City of Huntington Beach v. State of California; OCSC Case No. 30-2019-01044945. 6:00 PM – COUNCIL CHAMBERS Page 1 of 8 2 AGENDA July 18, 2023City Council/Public Financing Authority RECONVENE THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALL TO ORDER A SPECIAL MEETING OF THE HOUSING AUTHORITY ROLL CALL Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns PLEDGE OF ALLEGIANCE INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 23-5173.Huntington Beach Fire and Police Chaplain Roger Wing 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. Page 2 of 8 3 AGENDA July 18, 2023City Council/Public Financing Authority AB 1234 REPORTING Per AB 1234 (Government Code Section 53232.3(d)) Councilmembers who attend a meeting, conference, or similar event at the expense of the City must provide a brief report of the meeting, conference, or similar event during the next regular City Council meeting. Reports are limited to 1 minute. OPENNESS IN NEGOTIATION DISCLOSURES Councilmembers must publicly disclose any meetings or communications with City employee associations, related to the negotiations of labor agreements. Disclosures are limited to 1 minute and must be made by the next regular City Council Meeting. CITY MANAGER'S REPORT 23-6284.One Stop Shop Update CONSENT CALENDAR CITY CLERK 23-5165.Approve and Adopt Minutes A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 20, 2023; and, B) Approve and adopt the City Council/Public Financing Authority adjourned regular meeting minutes of June 26, 2023 Recommended Action: CITY MANAGER 23-6266.Approval of Comments by the Jet Noise Commission to the Federal Aviation Administration Approve the comment letter, and direct staff to submit the letter to the FAA. Recommended Action: 23-5597.Consider positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC). Approve one or more of the following positions on State legislation: A) OPPOSE AB (Ward) Change of Gender and Sex Identifier B) OPPOSE AB 957 (Ward) Family Law: Gender Identity C) OPPOSE SB 58 (Wiener) Controlled Substances: Decriminalization of Certain Recommended Action: Page 3 of 8 4 AGENDA July 18, 2023City Council/Public Financing Authority Hallucinogenic Substances D) OPPOSE SB 253 (Wiener) Climate Corporate Data Accountability Act E) OPPOSE SB 770 (Wiener/McGuire) Health Care: Unified Health Care Financing F) OPPOSE AB 1287 (Alvarez) Density Bonus Law G) OPPOSE SB 7 (Blakespear) The Homeless Housing Obligation Act H) OPPOSE SB 555 (Wahab) Stable Affordable Housing Act of 2023 I) OPPOSE SB 584 (Limon/Caballero) Laborforce housing: Short-Term Rental Tax Law J) OPPOSE SB 50 (Bradford) Vehicles: Enforcement K) OPPOSE SB 838 (Menjivar) Victim Compensation: Use of Force by a Law Enforcement Officer L) OPPOSE Assembly Constitutional Amendment (ACA) 4- Eligibility to Vote 23-5878.Consideration of the Environmental Sustainability Board’s Recommendation to Participate in the Surfrider Foundation’s Ocean Friendly Communities Pilot Program Approve participation in the Surfrider Foundation’s Ocean Friendly Communities Pilot Program. Recommended Action: COMMUNITY AND LIBRARY SERVICES 23-5049.Approve the design and installation of a chronological plaque depicting the restoration milestone efforts of community volunteers at Norma Brandel Gibbs Park as recommended by the Community & Library Service Commission. Approve the recommendation by the Community & Library Services Commission for the design and installation of a plaque honoring volunteer efforts of the restoration and beautification of Norma Brandel Gibbs Park on a pylon at the western entrance of the park. Recommended Action: 23-59710.Approve five-year License Agreement with Southern California Edison for Edison Community Park Approve the License Agreement with Southern California Edison for the use of 8.06 acres of property known as Edison Community Park (Contract 9.2193), and authorize the Mayor and City Clerk to execute any and all documents necessary to complete this transaction. Recommended Action: HUMAN RESOURCES 23-60611.Appointment of Sunny Han as Chief Financial Officer and Approval of the Employment Agreement Recommended Action: Page 4 of 8 5 AGENDA July 18, 2023City Council/Public Financing Authority Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Sunny Han” for the position of Chief Financial Officer . PUBLIC WORKS 23-45612.Accept the lowest responsive and responsible bid, and authorize execution of a construction contract with R.J. Noble in the amount of $4,137,704.00 for the Banning Avenue Street Improvements, CC-1711. A) Accept the lowest responsive and responsible bid submitted by RJ Noble in the amount of $4,137,704.00 (Base Bid + Additive Alternative D); and B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Recommended Action: 23-49613.Approve and authorize the execution of Amendment No. 1 to the Professional Services Contract between City of Huntington Beach and HF&H Consultants, LLC for negotiation services for SB 1383 compliance to increase the contract amount by $40,000 for a total not to exceed $115,000 Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Professional Services Contract Between City of Huntington Beach and HF&H Consultants, LLC for Negotiation Services for SB 1383 Compliance.” Recommended Action: 23-50614.Adopt Resolution No. 2023-30 authorizing the application for grant funds from the State Department of Parks and Recreation through the Habitat Conservation Fund Program Adopt Resolution 2023-30, “A Resolution of the City Council of the City of Huntington Beach Approving the Application for Grant Funds from the Habitat Conservation Fund Program.” Recommended Action: 23-57715.Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Premo Construction in the amount of $364,095 for the Well 9 Roof Replacement Project, CC1687. A) Accept the lowest responsive and responsible bid submitted by Premo Construction, Inc. in the amount of $364,095; Recommended Action: Page 5 of 8 6 AGENDA July 18, 2023City Council/Public Financing Authority B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; and C) Appropriate $97,300 from the Water Fund to account 50691043.82100 . 23-58216.Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Fleming Environmental Inc. in the amount of $1,093,371.00 for the Civic Center Underground Storage Tank (UST) Replacement Project, CC-1651. A) Accept the lowest responsive and responsible bid submitted by Fleming Environmental Inc. in the amount of $1,093,371.00. B)Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. 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. 23-58517.Appeal of the Planning Commission’s action that upheld the Zoning Administrator’s approval of Conditional Use Permit No. 23-006 (Huntington Beach Community Church Wireless Communication Facility) A) Find the proposed project exempt from the California Environmental Quality Act pursuant to Section 15303 of the CEQA Guidelines; and B) Approve Conditional Use Permit No. 23-006 with findings and conditions of approval (Attachment No. 1) Recommended Action: Page 6 of 8 7 AGENDA July 18, 2023City Council/Public Financing Authority ADMINISTRATIVE ITEMS 23-60718.Resolution No. 2023-34 approving a Side Letter between the City of Huntington Beach and the City of Huntington Beach Management Employees’ Organization (MEO) Approve Resolution No. 2023-34 , “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding Between the City and the Huntington Beach Management Employees’ Organization (MEO) by Adopting the Side Letter of Agreement” and authorizing the Side Letter between the City of Huntington Beach and the Huntington Beach MEO retroactive to FY 2015-16 . Recommended Action: 23-58019.Future Development of 17642 Beach Blvd. A) Receive and file this report; and B) Provide direction to staff regarding future use of the Site. Recommended Action: 23-58420.Middle-Income Housing Program Update Receive and file. Recommended Action: COUNCILMEMBER ITEMS 23-62221.Submitted by Councilmember Bolton - Employee Recruitment and Retention Efforts Request the City Manager and Human Resources Departments, with advice from the City Attorney’s Office, to present the following information at the October 3, 2023 Study Session (or) Council Briefings/Memos: 1. An analysis of fiscal, legal, and operational impacts (both costs and benefits) of employee recruitment/retention benefits and other sign-on incentives; and 2. Recommended approach and options (if any) to achieving the goal, including the operational steps and timeline, staffing and fiscal resources, and community engagement required. Recommended Action: 23-63322.Submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon - Proposed Charter Amendment - City of Huntington Beach Real Property - Property Tax Page 7 of 8 8 AGENDA July 18, 2023City Council/Public Financing Authority 1. Consider proposing an amendment to the City Charter that would restrict City Councils from engaging in real property transactions that would require the City of Huntington Beach to forgo regularly collected property taxes on investment property, unless those purchases are approved by the voters of the City of Huntington Beach. Exceptions to this rule would/may include real property transactions that are important for acquisition of private property for infrastructure. Request the Charter Review Ad Hoc Committee propose parameters, language, and timing of the Charter amendment measure for Council consideration. 2. Direct the City Manager to come back with a system for the City to have a Real Property Leasing, Purchasing, and Disposition Policy and a centralized Real Property function. Recommended Action: ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, August 1, 2023, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 8 of 8 9 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-609 MEETING DATE:7/18/2023 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Pacific Airshow, LLC v. City of Huntington Beach and Kim Carr; OCSC Case No. 30-2022-01287749. City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™10 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-632 MEETING DATE:7/18/2023 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). City of Huntington Beach v. State of California; OCSC Case No. 30- 2019-01044945. City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™11 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-517 MEETING DATE:7/18/2023 Huntington Beach Fire and Police Chaplain Roger Wing City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™12 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-628 MEETING DATE:7/18/2023 Subject: One Stop Shop Update Attachment(s): 1. One Stop Update Powerpoint Presentation City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™13 One Stop Update City Manager’s Report July 18, 2023 14 Background o 2016: ACCELA PROJECT BEGINS – INTENT TO CREATE CENTRAL PERMITTING SYSTEM FOR ALL DEVELOPMENT SERVICES o MULTI-YEAR, MULTI-MILLION DOLLAR , INTER-DEPARTMENT INVESTMENT o 2021: LAUNCH OF ACCELA PERMITTING SYSTEM & ONLINE (ACA) PERMITTING o 2021: LAUNCH OF PERMIT CENTER IN COMMUNITY DEVELOPMENT DEPARTMENT o 2022: COUNCILMEMBER PETERSON H-ITEM TO “STREAMLINE THE PROCESS” o 2023: CITY COUNCIL PRIORITIZES “ONE STOP SHOP” DURING STRATEGIC PLANNING SESSION o COUNCILMEMBER KALMICK H-ITEM FOR ZONING CODE UPDATES o COUNCILMEMBER MCKEON H-ITEMS FOR ONE STOP & DIF FEE UPDATES o SERVICE EXCELLENCE & PROCESS MAPPING BEGINS W/ DENNIS SNOW & NORTH STAR TEAM 15 StreamlineHB: Top Components Self Service & Research Kiosks Development Assistance Team Online Services Platform: Accela Citizen Access (ACA) Electronic Plan Review One Approval Building Permits (Planning Review Eliminated) Uniform Plan Check Turnaround Times Zoning Code/Municipal Code Updates Customer Queuing System (Qless) Customer Service Satisfaction Measurement System Regular Reporting of Data e.g., Building Permits Issued, Valuation, Planning Applications, Customer Service, etc. Automatic Inspection Time Notifications In-Person Customer Assistant/Greeter All Services on One Floor: One Stop Shop Expedited Plan Review Uniform Counter & Phone Hours One Stop Phone System Virtual Appointments Live Chat – Customer Help Expand Customer Kiosks and Add Scanners Online Services in Additional Languages Online Signature Disclosures Personalized Concierge/Customer Advocate ACA Fine Tuning Upgrades Widespread Promotion of Efforts Updated Website Revise Processes “Through Customer’s Lens” 16 StreamlineHB: Status Self Service & Research Kiosks Development Assistance Team Online Services Platform (Accela Citizen Access) Electronic Plan Review One Approval Building Permits (Planning Review Eliminated) Uniform Plan Check Turnaround Times Customer Queuing System (Qless) o Zoning Code/Municipal Code Updates o Customer Service Satisfaction Measurement System o Regular Reporting of Data e.g., Building Permits Issued, Valuation, Planning Applications, Customer Service, etc. o Automatic Inspection Time Notifications o Updated Website All Services on One Floor: One Stop Shop Expedited Plan Review Uniform Counter & Phone Hours One Stop Phone System Virtual Appointments Live Chat – Customer Help Expand Customer Kiosks and Add Scanners Online Services in Other Languages Online Signature Disclosures Personalized Concierge/Customer Advocate ACA Fine Tuning Upgrades Widespread Promotion of Efforts Revise Processes “Through Customer’s Lens” KEY TO CHECKLIST To Do (14) o In Progress (5) Active/Completed (7) 17 Where are we today? 18 Permit Center •Significant step towards a One Stop Shop •Launched in 2021 •Team of dedicated Planning and Building Staff = consistency for customers •Accela – online system •Permits •Plan Review •Inspections •24/7 Access – track progress, upload plans, make payments •Customer Research Kiosks •Qless: Join the Line Before You Arrive 19 External Online Portal: A “Game Changer” Accela & ACA (Accela Citizen Access) 24/7 Online Services 100% Electronic Plan Review 49 Applications Available Online 1 Additional App Needed for Community Development: 30 Hours Staff Time 14 Additional Apps Needed for Business License: $200,000 estimate Online Payments Application Status Tracking Upload/Download Plans Electronically Downloadable Permits (new & historical) Downloadable Inspection Job Card Record Report Active Unpermitted Construction Printable Report of Citywide Entitlements & Permit Activity 20 ACA Demo Video 21 Streamline HB 22 Streamline HB Steps 1. Establish Leads and Dept. Reps. •Initial DST meeting held •Department rep. committee meetings –ONGOING •Develop initial list of service streamline tasks and projects – list will be refined as more steps are completed 2. Data Collection •Customer/Permit Volume and Profile 3. Survey Other Cities -STARTED •Pull data from other cities that have established “one stop shop” & implemented best practices •City of Riverside One Stop Tour – *Setup Additional Tour for City Council (Aug/Sept) 4. Survey our Customers Through Focus Groups 5. Process Mapping •Lens of the Customer 6. Prioritize Service Streamline Items •City Council Check-In 7. Implementation 23 Data Collection 24 Daily In-Person Customers Per Department Department Daily In- Person Customers (Prior to 2021 Launch) Daily In- Person Customers (Current) % Decline Since Implementing Electronic Services % of Services Available Online % of Customers Online % of Customers In-Person Community Development 110 18 84%90% 84% 16% Fire 18 1 94%100% 94% 6% Public Works 30 9 70%100% 70% 30% Business License 40 25 38%30% 38% 62% Total All Dev. Services 198 53 73%80% 73% 27% 25 Permit Valuation by Year (2019-2023) Community Development – 279% Increase 124 97 122 170 393 44 56 47 124 78 168 153 170 295 471 0 50 100 150 200 250 300 350 400 450 500 2019 2020 2021 2022 2023 (Projected) Construction Valuation Annually (in millions) Residential Valuation Commercial Valuation Total Valuation 26 Permit Counts by Year (2019-2023) Community Development – 20% Increase 8322 6920 8370 9204 9999 0 2000 4000 6000 8000 10000 12000 2019 2020 2021 2022 2023 (projected) Community Development # of Permits by Year # of Permits Per Year 27 In-Person Customers (2019-2023) Community Development – 84% Decrease 28 Streamline HB Progress and Plans 29 Streamline HB Progress Service Streamline Item Status Notes Online Services Platform (ACA) Completed Next phase of improvements – customer interface, more business license integration, instant permits Electronic Plan Review Completed Currently at 100% Uniform Plan Review Turnaround Times Completed In-house plan checkers meet target 98.7% of the time Development Assistance Team (DAT) Completed DAT has been in place for 15 years; expanded for conceptual plans last 6 years Zoning Code Updates Completed/Ongoing Since 2019: 3 phases completed; next phase to be completed by end of 2023 Permit Streamlining Completed Eliminated Planning Review/Sign Off for 12 different building permits Qless – Join the Line App Completed (Comm. Dev. Dept.) Expand to other departments Self-Service & Research Kiosks in Comm. Dev. Dept. Completed Expand number and availability Customer Survey System Completed (Fire Dept.)Expand to other departments 30 Streamline HB Plan •Initial List developed by Dept. Rep. Committee •Committee is currently assessing cost estimates and timing/phasing EXPEDITED PLAN REVIEW 100% OF ALL DEVELOPMENT SERVICES AVAILABLE ONLINE UNIFORM COUNTER & PHONE HOURS ONE STOP SHOP SERVICE AREA W/ ALL DEPTS ON 1ST FLR ONE STOP PHONE SYSTEM VIRTUAL APPOINTMENTS LIVE CHAT ON THE WEB 31 Streamline HB Plan (cont.) UNIFORM CUSTOMER SURVEY SYSTEM EXPAND KIOSKS & ADD SCANNERS OFFER ONLINE SERVICES IN ADDITIONAL LANGUAGES ONLINE SIGNATURE DISCLOSURES HAPPY OR NOT SYSTEM AUTOMATIC NOTIFICATIONS FOR INSPECTION TIME FRAME CUSTOMER CONCIERGE / CUSTOMER ADVOCATE PILOT PROGRAM ACA FINE TUNING UPGRADES **NOTE: Cost estimates are being developed for each item 32 Questions? 33 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-516 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Robin Estanislau, CMC, City Clerk PREPARED BY:Robin Estanislau, CMC, City Clerk Subject: Approve and Adopt Minutes Statement of Issue: The City Council/Public Financing Authority regular meeting minutes of June 20, 2023, and adjourned regular meeting minutes of June 26, 2023, require review and approval. Financial Impact: None. Recommended Action: A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 20, 2023; and, B) Approve and adopt the City Council/Public Financing Authority adjourned regular meeting minutes of June 26, 2023 Alternative Action(s): Do not approve and/or request revision(s). Analysis: None Environmental Status: Non-Applicable Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. June 20, 2023 CC/PFA regular meeting minutes 2. June 26, 2023 CC/PFA adjourned regular meeting minutes City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™34 File #:23-516 MEETING DATE:7/18/2023 City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™35 Minutes City Council/Public Financing Authority Regular Meeting and Special Meeting of the Housing Authority City of Huntington Beach Tuesday, June 20, 2023 4:00 PM — Council Chambers 6:00 PM — Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:00 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 4:00 PM — COUNCIL CHAMBERS CALLED TO ORDER — 4:01 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None CITY COUNCILMEMBER COMMENTS (3-Minute Time Limit) Councilmember Bolton expressed deep concerns about public accusations directed at City librarians and staff related to Agenda Item No. 18 and the housing, display, and distribution of pornography and obscenity in our public libraries. Noting that examples of reading material being described as “obscene” seem to address LGTBQ topics, the agenda item itself actually points out that “Federal law strictly prohibits distribution of obscene matter to minors,” which makes it questionable the that our public libraries have been violating federal obscenity laws for so many years. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION ITEMS (Received After Agenda Distribution) — None. PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3-Minute Time Limit) — None. MAYOR’S CLOSED SESSION ANNOUNCEMENT: For Item #2, Labor Negotiations — Police Management Association (PMA). RECESSED TO CLOSED SESSION — 4:04 PM A motion was made by Burns, second McKeon, to recess to Closed Session for Items 1 — 3. CLOSED SESSION 36 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 2 of 21 1. 23-528 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION (Gov. Code section 54956.9(d)(2).): Number of matters: One (1). 2. 23-520 CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated representatives: Al Zelinka, City Manager, and Peter Brown, Chief Negotiator; also in attendance: Jose Rodriguez, Human Resources Manager; Theresa St Peter, Interim Director of Human Resources; Travis Hopkins, Assistant City Manager; Michael E. Gates, City Attorney; Eric Parra, Chief of Police; and Sunny Han, Acting Chief Financial Officer. Employee Organization: Police Management Association (PMA). 3. 23-519 PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Pursuant to Government Code §54957 for performance evaluation of the City Manager. 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY REGULAR MEETING AND CALLED TO ORDER A SPECIAL MEETING OF THE HOUSING AUTHORITY — 6:01 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None PLEDGE OF ALLEGIANCE — Led by Mayor Pro Tem Van Der Mark. INVOCATION 4. 23-508 Huntington Beach Police Chaplain James Pike In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. CLOSED SESSION REPORT BY CITY ATTORNEY — None. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet, that were uploaded to the City's website and Councilmember iPads prior to the start of the meeting: City Attorney's Report Item #5 (1 PowerPoint communication, 1 email communication); Administrative Items #15 (4 email communications); Councilmember Items #18 (1 PowerPoint communication, 621 email communications); and Item #19 (110 email communications). PUBLIC COMMENTS (3-Minute Time Limit) — 117 Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. 37 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 3 of 21 Brenda Glim, a long-time Huntington Beach homeowner, was called to speak and thanked Huntington Beach First Responders for their prompt response, professionalism, and skill on the night her husband experienced a sudden cardiac arrest. Ms. Glim also stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (00:11:46) Shirley Dettloff, a resident of Huntington Beach since 1964 and one of the authors of the Human Dignity Statement, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:14:49) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (00:17:46) Laura Aydelotte, a resident of Huntington Beach who grew up here, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:20:46) Kelly Jones, representing State Senator Dave Min’s Office, was called to speak and read Senator Min's statement of opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:23:52) Gloria Lurie, a 36-year resident of Huntington Beach and retired teacher, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (00:25:51) Cathey Ryder, a resident of Huntington Beach since 1985, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL), and her support for Item #19 denouncing hate in Huntington Beach. (00:27:05) Diane Bentley, a 22-year resident of Huntington Beach, tutor in the Adult Literacy Program, and Friends of the Huntington Beach Library member, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:30:17) Ian Mason was called to speak stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:32:42) Karen Jackle was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:36:20) Joanne was called to speak stated support for Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:37:04) 38 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 4 of 21 Laszlo Lak was called to speak stated support for Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:38:49) Pat Goodman was called to speak and shared opinions regarding Public Hearing Item #14 relating to options for funding the Navigation Center; stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL); and stated support for Item #19 denouncing hate in Huntington Beach. (00:41:47) Kathie Schey was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL). (00:44:40) Andrew Einhorn, a long-time resident of Huntington Beach, was called to speak and asked that Councilmembers cease protecting one of their peers for their past hate speech and establish an independent committee to review the allegations. He also stated his opposition to Councilmember Items #18 regarding selection, display and circulation of Library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (00:46:50) JoAnn Arvizy, a 50-year resident of Huntington Beach, was called to speak and read a letter on behalf of Former Mayor and Councilmember Debbie Cook, that stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (00:49:53) Sue Welfringer was called to speak stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL) (00:52:50) Tony Daus, a 28-year resident of Huntington Beach, was called to speak stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (00:55:29) Carol Daus, 28-year resident of Huntington Beach and Friends of the Huntington Beach Library volunteer, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (00:56:17) Jeanne Paris, a 27-year resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and stated opposition to Item #19 denouncing hate in Huntington Beach. (00:59:36) Delaine Bailey, a 9-year resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:02:43) Steve Quinn was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:06:29) 39 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 5 of 21 Mayor Strickland called for a ten-minute recess to consult with Police Chief Parra and ensure continued public safety for this meeting. (01:08:23) When reconvened, Mayor Strickland announced that only those called to speak may be in the area behind the podiums, and any signage brought by a speaker may be displayed at the time they are providing comments at the podium. (01:16:20) Steve Quinn completed his remarks in support of Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), after the short recess. (01:17:03) Patti Pappas, a 43-year+ resident of Huntington Beach and former educator, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:17:59) Ceason Baker was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:21:15) Ann Palmer, a 30+ year resident of Huntington Beach, and Friends of the Huntington Beach Library member, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:23:52) Elana K Arnold, Best Selling Author of books for children and teens, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:27:39) T.J. England, a resident of Huntington Beach since 1967 and Former Army Nurse, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:31:05) Larry Hersh was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:32:36) Unnamed Guest was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:35:48) Betty Kanne, a long-time Huntington Beach resident, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:39:31) Allie Plum, a resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and stated support for Item #19 denouncing hate in Huntington Beach. (01:42:20) 40 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 6 of 21 Barbara Richardson, a resident of Huntington Beach since 1973, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:45:01) Shaheer Quader, a resident of Huntington Beach for over 40 years, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:48:16) Richard Kelly, a 54-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:51:27) Gary Casamento, a 40-year Huntington Beach homeowner, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:54:47) Leslie Casamento, a 30-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (01:58:03) Jignesh Padniar was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:00:06) Laura Rocha, a 25-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:03:19) Wendy Rincon, a life-long resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:07:00) Sydney Rincon, a life-long resident, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:09:59) Lisa Musil, a 20+-year resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:13:08) Stephanie Camacho-Van Dyke, LGBTQ Center—OC Director of Advocacy and Education, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:16:20) Martha Elliott, a 32-year Huntington Beach homeowner, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:17:58) 41 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 7 of 21 Sarah McCourt was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:21:11) Rabbi Stephen Einstein was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Items #19 denouncing hate in Huntington Beach. (02:24:27) Mark Dixon, a 51-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (02:27:33) "Skywalker" was called to speak and shared titles of books that he believes are brainwashing people to support the radical left agenda. (02:29:21) Valentina Bankhead, a resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:32:32) Laury Creyaufmiller, a resident of Huntington Beach since 1979, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:36:44) Melanie Bergeland, a 37+-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:40:00) Luanne Nichols Shoup was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and opposition to Item #19 denouncing hate in Huntington Beach. (02:41:54) Avery Counts, a resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (02:45:07) Kylie Bruce, a life-time resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:47:49) Chris Kluwe, a 15-year Huntington Beach resident, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (02:50:52) Hannah Cole, a 4-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (02:54:11) 42 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 8 of 21 Libby F was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (02:57:26) Alexandra Winnik, alumna of Edison High School, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:00:39) Amory Hanson was called to speak and stated support for Consent Calendar Item #8 regarding on-call video production services for a two-year contract term. (03:03:49) Susan Claudius was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:04:37) Heidi Barlow was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:06:42) Honie Abramowicz, 45+-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:09:24) Laura Steingold, a 40-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:12:51) Carin Meister was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:15:25) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:18:37) Nicholas Radtke, an 8-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:21:52) Susan Wexler, a 42-year resident of Huntington Beach, retired high school teacher and Library Volunteer, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:25:00) Leslie Golson, a 30-year Huntington Beach resident and retired teacher, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:27:17) 43 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 9 of 21 Randy Kokal, a 30-year Huntington Beach resident and Former Huntington Beach Planning Commissioner, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:30:05) Bryson Miller, a resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:34:30) Scott Malabarba, a 20-year Huntington Beach resident, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:37:41) Melanie Tioleco-Cheng, a resident of Huntington Beach, was called to speak and read her 18-year-old daughter's statement of opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:40:47) Nora Pedersen, a 35-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:43:50) Roy C. McCord, a long-time resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:45:54) Andreas Georgi, a 25-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (03:49:03) Russ Neal, a resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and in opposition to Item #19 denouncing hate in Huntington Beach. (03:50:51) Harika Kayi, a 21-year Huntington Beach resident, was called to speak and stated support for Councilmember Items #19 denouncing hate in Huntington Beach. (03:53:33) Dana Lee, a life-long resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:56:48) Nick McLachlan, a Huntington Beach resident, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (03:58:24) 44 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 10 of 21 Bethany Webb, a 45-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:01:37) Buffy Channel, a 34-year resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:03:53) Jeanne Farrens was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:08:04) Arthur Estrada was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:11:20) Kane Durham was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:13:23) Heidi Vea was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:16:17) Paula Schaefer, a resident of Huntington Beach, was called to speak and stated opposition to proposed Resolution No. 2023-24's plan to add three attorneys to the City Attorney's Office, and opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:19:28) Kathryn Goddard was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:22:33) Terry Rose was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:25:17) Dina Chavez, a long-time resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:28:32) Cooper Carrasco, a life-time resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:32:20) Unnamed Guest, a 36-year Huntington Beach homeowner and a school librarian, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:35:27) 45 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 11 of 21 Brian Vea, a resident of Huntington Beach, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:38:47) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:41:26) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:44:35) Unnamed Guest was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:48:37) Kathleen Johnson, Huntington Beach resident and Law Professor, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:49:26) Alicia Tan, Huntington Beach Public Library Intern, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:52:41) Julie Evans, Huntington Beach resident and Public School Teacher, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (04:55:35) At 10:59 PM, a motion was made by Mayor Strickland, second McKeon, to continue the meeting past the hour of 11:00 PM. (04:58:51) Aletheu Vean, Huntington Beach High School student, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (04:59:49) Suzanne Hart, Retired School Teacher and Huntington Beach Public Library Volunteer, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:02:31) Tim Geddes, a 40-year Huntington Beach resident and former teacher, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Councilmember Items #19 denouncing hate in Huntington Beach. (05:04:15) Jessamyn Garner, resident of Huntington Beach and OC Pride Board Member, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library 46 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 12 of 21 books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (05:07:20) Paul Horgan was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (05:10:31) Christine Padesky, a 40+-year resident of Huntington Beach and Licensed Clinical Psychologist, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL), and support for Item #19 denouncing hate in Huntington Beach. (05:14:56) Vel Savalle was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:18:14) Mike B., long-time resident and school teacher, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:20:44) Tom Dillman, Huntington Beach resident and Gulf War Veteran, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:23:58) Linda, a long-time resident, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:26:51) Dr. Linda MacDonell, Former Huntington Beach Public Library Board Member and Former Human Relations Task Force Member, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:30:04) Joyce Rilley was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL) (05:31:35) Jeanne Goodin, a long-time resident of Huntington Beach and Retired Teacher, was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:33:06) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:35:44) Unnamed Guest was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:39:43) 47 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 13 of 21 Unnamed Guest was called to speak and stated support for Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL) (05:42:12) Eva Rains, a resident of Huntington Beach and Edison High School graduate, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:45:20) Jennifer Rojas, a resident of Huntington Beach, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:48:37) Dougan Be X, a two-year resident of Huntington Beach and Combat Veteran, was called to speak and stated opposition to Councilmember Items #18 regarding selection, display and circulation of library books and other materials within Huntington Beach Public Libraries (HBPL). (05:51:09) Unnamed Guest was called to speak and shared opinions related to recent City Council decisions that he believes could potentially place the City of Huntington Beach into bankruptcy. (05:54:17) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS Mayor Strickland announced the appointment of Councilmember Burns as his replacement on the West Orange County Water Board, and removed Councilmember McKeon and added himself to the Sister City Association. AB 1234 REPORTING — None. OPENNESS IN NEGOTIATION DISCLOSURES — None. CITY MANAGER’S REPORT — None. CITY ATTORNEY’S REPORT 5. 23-531 City Attorney’s Update on the Community Prosecutor Program City Attorney Michael Gates presented a PowerPoint communication titled Community Prosecutor Program Update with slides entitled: History of the Community Prosecutor Program (3); Program Goals; Success of the Community Prosecutor Program; Common State Crimes California Penal Codes; Ex. Theft; Ex. Vandalism; Ex. Public Intoxication; Ex. Resisting Arrest; Huntington Beach Municipal Code; Diversionary Programs (2); Ex. Homeless Outreach (2); and Case Load Statistics May 1, 2022 - June 15, 2023. Councilmember Kalmick asked for year-over-year statistics for the last 5 years. City Attorney Gates noted there would be anomalies during the time of COVID-19. Councilmember Bolton and City Attorney Gates discussed how hate crimes are handled, and noted that generally speaking cases with a lot of witnesses or evidence usually stay with the District Attorney for chain of custody reasons. CONSENT CALENDAR 48 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 14 of 21 City Clerk 6. 23-509 Approved and Adopted Minutes A motion was made by Kalmick, second Van Der Mark to approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 6, 2023; and approve and adopt the City Council/Public Financing Authority special meeting minutes of June 13, 2023. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None City Manager 7. 23-495 Approved the re-appointments of KC Fockler, Kathleen McGowan, Bud Benneman, Joan Siegal, and Eric Bornstein to the Environmental & Sustainability Board as recommended by City Council Liaisons Bolton and Moser A motion was made by Kalmick, second Van Der Mark to approve the re-appointment of the following current ESB members: KC Fockler and Kathleen McGowan for a 2-year term of July 1, 2023 through June 30, 2025; Bud Benneman, Joan Siegal, and Eric Bornstein for a 4-year term of July 1, 2023 through June 30, 2027. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 8. 23-503 Approved and authorized execution of Professional Services Contracts with Dorado Creative, Inc., Tripepi Smith and Associates, and Marketworks for On-Call Video Production Services for a two-year contract term A motion was made by Kalmick, second Van Der Mark to approve and authorize the Mayor and City Clerk to execute, "Professional Services Contract Between the City of Huntington Beach and Dorado Creative, Inc. for On-Call City of Huntington Beach Video Production Services"; and/ or approve and authorize the Mayor and City Clerk to execute, "Professional Services Contract Between the City of Huntington Beach and Tripepi Smith and Associates for On-Call City of Huntington Beach Video Production Services"; and/ or approve and authorize the Mayor and City Clerk to execute, "Professional Services Contract Between the City of Huntington Beach and Marketworks for On-Call City of Huntington Beach Video Production Services." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None Community and Library Services 49 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 15 of 21 9. 23-459 Approved reappointments to the Historic Resources Board (HRB), with terms to expire June 30, 2027, as recommended by City Council Liaisons, Van Der Mark and Burns A motion was made by Kalmick, second Van Der Mark to approve the reappointments of Susan Nguyen, David Wentworth, Sr., and Joseph Santiago for an additional term to the Historic Resources Board, effective July 1, 2023 through June 30, 2027. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None Public Works 10. 23-455 Accepted the lowest responsive and responsible bid, approved appropriations, and authorized execution of a construction contract with All American Asphalt in the amount of $1,559,316 for the Saybrook Lane Rehabilitation Project, CC-1690. A motion was made by Kalmick, second Van Der Mark to accept the lowest responsive and responsible bid submitted by All American Asphalt in the amount of $1,559,316.00, and; authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 11. 23-467 Approved and authorized execution of a Cooperative Agreement with the Orange County Flood Control District for the East Garden Grove—Wintersburg Channel Flood Wall Improvements at Warner Avenue, Springdale Street, and Edwards Street Bridges A motion was made by Kalmick, second Van Der Mark to approve and authorize the Mayor and City Clerk to execute "Cooperative Agreement between Orange County Flood Control District and City of Huntington Beach for Funding, Construction, and Maintenance of the East Garden Grove—Wintersburg Channel (C05) Bridges at Warner Avenue, Springdale Street, and Edwards Street Improvements Project." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 12. 23-478 Accepted bid and authorized execution of a construction contract with Elecnor Belco Electric, Inc., in the amount of $308,008, for the construction of a traffic control signal at the Heil Avenue Fire Station (5891 Heil Avenue) (CC-1673) A motion was made by Kalmick, second Van Der Mark to accept the lowest responsive and responsible bid submitted by Elecnor Belco Electric, Inc., in the amount of $308,008; appropriate $68,827 of 50 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 16 of 21 undesignated Traffic Impact Fee balance to Traffic Impact Fee account 20690020.82700; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 13. 23-482 Adopted Resolution No. 2023-22 concerning the status and update of the Local Signal Synchronization Plan (LSSP) for the Measure M2 Program; adopted Resolution No. 2023-29 concerning the status and update of the Circulation Element and Mitigation Fee Program for the Measure M2 Program; and adopted a 7- Year Capital Improvement Program for the Fiscal Years 2023/24 through 2029/30 for compliance with the renewed Measure M eligibility requirements A motion was made by Kalmick, second Van Der Mark to adopt Resolution No. 2023-22, "A Resolution of the City Council of the City of Huntington Beach Concerning the Update of the Local Signal Synchronization Plan for the Measure M (M2) Program"; adopt Resolution No. 2023-29, "A Resolution of the City Council of the City of Huntington Beach Concerning the Status and Update of the Circulation Element, and Mitigation Fee Program for the Measure M (M2) Program"; and adopt the 7-year Capital Improvement Program (Fiscal Years 2023/24 through 2029/30) included as Attachment #4 for compliance with the renewed Measure M eligibility requirements. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None PUBLIC HEARING 14. 23-521 CONTINUED to June 26, 2023 at 5:00 PM 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 Officer, 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; and 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 51 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 17 of 21 Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet, which were uploaded to the City's website and Councilmember iPads prior to the start of the meeting: (1 email communication). Public Speakers — 1 Amory Hanson was called to speak and stated his support for Public Hearing Item #14 (H), the addition of three Classifications to the City's Classification Plan. (06:06:41) Councilmember Kalmick shared his disappointment that this item is being continued, and advised interested individuals to review attachments to the Monday, June 26, meeting agenda, specifically cuts to services that may be proposed. (06:07:07) A motion was made by Burns, second McKeon to continue to Monday, June 26, 2023 at 5:00 PM, request to consider adopting 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, 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, 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, authorize the appropriation and transfer of $3,903,803 from the General Fund Equipment Replacement Reserve to the Equipment Replacement Fund 324; and, approve the return to a 12 year paving cycle; and, 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, 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, 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 Officer, and Municipal Records Manager" (Attachment 6); and, 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, 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, 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, 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). The motion as amended carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None ADMINISTRATIVE ITEMS 52 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 18 of 21 15. 23-522 WITHDRAWN FROM CONSIDERATION — Future Development of 17642 Beach Blvd. Receive and file this report, and provide direction to staff regarding future use of the Site. 16. 23-525 Approved Introduction of the Proposed Memorandum of Understanding between the Huntington Beach Police Management Association (PMA) and the City of Huntington Beach for July 1, 2023 through June 30, 2026. Assistant City Manager Travis Hopkins presented a PowerPoint communication titled Introduction of Proposed Memorandum of Understanding with the Police Management Association (PMA) with slides entitled: Overview; Proposed Memorandum of Understanding; Fiscal Impact; and City Council Options. A motion was made by Strickland, second Van Der Mark to approve introduction of the proposed Memorandum of Understanding between the Huntington Beach Police Management Association and the City of Huntington Beach for the period July 1, 2023 through June 30, 2026. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 17. 23-524 Adopted Resolution No. 2023-31 Approving and Implementing the Memorandum of Understanding (MOU) between the Huntington Beach Police Officers’ Association (POA) and the City of Huntington Beach for July 1, 2023, through June 30, 2026; and authorized appropriation of funds. Assistant City Manager Travis Hopkins presented a PowerPoint communication titled Consideration of the Proposed Memorandum of Understanding with Police Officers' Association with slides entitled: Overview; Proposed Memoranda of Understanding (2); Fiscal Impact; and City Council Options. A motion was made by Strickland, second Van Der Mark to adopt Resolution No. 2023-31, "A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Police Officers' Association (POA) and the City for July 1, 2023, through June 30, 2026;" and, authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2023-31. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None COUNCILMEMBER ITEMS 18. 23-532 Approved as amended Item Submitted by Mayor Pro Tem Van Der Mark — Selection, Display and Circulation of Library Books and Other Materials within Huntington Beach Public Libraries (HBPL) Mayor Pro Tem Van Der Mark introduced her item by reading information included in the Issue Statement that described problems with children exposed to obscene and age-inappropriate materials by adults, federal obscenity laws, First Amendment protections, etc. She further explained that federal law 53 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 19 of 21 would prevent her from displaying certain uncensored examples of obscene and/or pornographic material found in children’s books that are included in her prepared PowerPoint titled, Huntington Beach Library Children’s Books, with slides titled Books Currently Available to Children, Grades 7-12 (3), Children Section Books Available to All Children, All Ages (3), Book Currently on Order for Children Section Recommended Ages, 3-6 (2), and, Book Available for All, Including Children to Checkout (3). Mayor Pro Tem Van Der Mark then provided a warning to parents that certain images and or excerpts from books she was about to highlight, may not be appropriate for children. City Attorney Michael Gates clarified for the record that his proposed role for this process is only to review and provide a legal analysis and evaluation for First Amendment protections for books brought to leadership as objectionable. There was general discussion on possible ways that do not violate free speech to categorize books according to age appropriateness. Mayor Pro Tem Van Der Mark reiterated she is not proposing any books be banned nor restricting materials for any specific gender, but rather putting safeguards in place to protect children and help educate parents so they can make informed decisions about what is appropriate for their families. Councilmember McKeon stated his opinion that a simple question needs to be answered: "Is pornography to be allowed in a public library that is paid for by the taxpayer residents?" He stated his support for guidelines and policies that protect children and allows parents to decide what is appropriate, such as policies and regulations provided by the movie industry. Councilmember Bolton shared her observation that media refused to show any images or text provided to them as examples of pornography or obscenity because the examples were taken out of context. She further shared her opinion the City Council has much more important issues to be spending their time on because there are already procedures and policies in place to handle this concern. Councilmember Bolton added her opinion that book sellers have already received a legal opinion on the appropriate age level; librarians cannot be expected to have reviewed every single book on the shelves; government at any level is not in the business of censorship; the system and policies in place are not perfect; and parents are responsible to determine what their children see and read. Mayor Strickland stated he believes that a majority of parents are probably not aware of the content of the books used as examples for this discussion; his support for looking at possible options for ensuring obscene and/or pornographic materials are unavailable to minors without parental approval in Huntington Beach Public Libraries; and thanked Mayor Pro Tem Van Der Mark for educating the public. Councilmember Moser stated her belief that with regards to the rating system, Mayor Pro Tem Van Der Mark's argument misses the fundamental difference between voluntary guidelines adopted by private industry, and the imposition of government restrictions on speech. She thanked the public for their overwhelming support of the library system; described the slippery slope which can be created when censorship is used; noted that appropriate policies and procedures already exist for handling potentially objectionable library materials; noted that parents are able to view their family's library account online to see which books have been checked out; and stated the City's Librarian confirmed to her that the City is not associated with the American Library Association because of budget restrictions. Councilmember Kalmick thanked the public for engaging in this conversation, and requested assistance from the City Attorney to explain the constitutional rights of children, and his response to the concerns 54 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 20 of 21 shared earlier by Councilmember Bolton on the City’s potential violation of federal obscenity laws in our public libraries. Councilmember Kalmick shared his opinion that "making obscene and/or pornographic materials unavailable to minors" is an action of banning, and his belief that confusion exists in this conversation on what folks consider a child vs. young adult, or adolescent vs. teenager, and that this whole effort is an attempt to protect parents from allowing their children to see things which Mayor Pro Tem Van Der Mark believes are inappropriate. Councilmember Kalmick stated he could not support this item because there are already effective policies and processes in place. Councilmember Burns stated he agrees that a lot of misinformation has come about regarding this issue; he believes the real intent of this item is to protect children, and help parents to realize what is actually available through the library; and he supports this item as it provides an opportunity to “check” what appears to be expanding boundaries regarding what is considered obscene and/or pornographic. City Manager Zelinka questioned if Mayor Pro Tem Van Der Mark and Council would consider having staff return with options to address identified concerns at a Study Session in September. An amended motion was made by McKeon, second Strickland to direct the City Manager to work with the City Attorney to return to the City Council at a Study Session in August September of this year with options to establish safeguards that would prevent minor access to age-inappropriate, obscene, pornographic and/or sexually explicit materials in City libraries. a proposed Ordinance for the City's Libraries and other public facilities making obscene and/or pornographic materials, both in hard copy and digitally/electronically, unavailable to minors; with the City Attorney evaluating the materials under the First Amendment. The Ordinance should also present the policy for procurement, which would include new screening protocols for books/materials/content yet to be acquired by the Library or other City facilities that are intended for children at our public facilities, by screened for obscenity and/or pornography. The Ordinance should also present findings and authorities for "obscenity" within the meaning of the First Amendment. I would also like to direct our City Manager to look into the process to part ways with the American Library Association. The motion as amended carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton 19. 23-534 Approved as Amended Item Submitted by Council Members Kalmick, Bolton, and Moser — Denouncing Hate in Huntington Beach Council Kalmick stated this issue should be addressed by City Council until the hate stops, and noted the item is in direct response to the recent hate flyers distributed in southeast Huntington Beach. A motion was made by Kalmick, second Bolton, for a Minute Action (which shall be deemed a Council Resolution) that “The City Council of the City of Huntington Beach denounces antisemitism, white supremacy, and anti-LGBTQ hate. A substitute motion was made by Strickland, second Van Der Mark for a Minute Action (which shall be deemed a Council Resolution) that "The City Council of the City of Huntington Beach denounces antisemitism, white supremacy, and anti-LGBTQ hate" amended to also denounce hatred towards 55 City Council/PFA Regular Meeting Minutes Housing Authority Special Meeting Minutes June 20, 2023; Page 21 of 21 Catholics, Christians, African-Americans, Latinos, Asians, Pacific Islanders, Native Americans, Indians, Persians, Muslims, Hindu, Buddhist, Mormons, Whites, and Women. Councilmembers Bolton and Moser stated that they intended this item to be specifically directed to the recent hate incidents during the last week, and not an attempt to be all-inclusive. Councilmember Moser noted she intends to revisit the Declaration of Human Dignity in an upcoming City Council meeting, as that is another discussion. The substitute motion carried by the following roll call vote: AYES: Moser, Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Bolton OUT OF ROOM: Kalmick ADJOURNMENT — 1:25 AM on Wednesday, June 21, 2023, to the specially called meeting of Monday, June 26, at 5:00 PM for continuance of the Public Hearing for the Fiscal Year 23/24 Budget. The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Wednesday, July 5, 2023, has been cancelled for lack of a quorum. 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. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov _______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 56 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, June 26, 2023 5:00 PM — Council Chambers 6:00 PM — Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 5:00 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 5:00 PM — COUNCIL CHAMBERS CALLED TO ORDER ADJOURNED REGULAR MEETING OF THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY — 5:32 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None CITY COUNCILMEMBER COMMENTS (3-Minute Time Limit) Councilmember McKeon thanked the community for their patience through the budget process, and read a prepared statement to express his disapproval of certain budget decisions made by the previous City Council and his frustrations regarding campaign mailers recently distributed by Councilmember Kalmick that in his opinion presented false information and misrepresented the Council majority’s pledge for fiscal responsibility. Mayor Pro Tem Van Der Mark thanked community members for their participation in the budget process, and read a prepared statement to make clear the Council majority’s pledge for fiscal responsibility, and her opinion that financial decisions made by the previous City Council are responsible for the City’s current financial standing. Councilmember Kalmick thanked the community for attending, disputed the validity of statements made by Councilmember McKeon and Mayor Pro Tem Van Der Mark, and looked forward to a productive budget discussion. Mayor Strickland acknowledged the City’s financial position, emphasized strong Council support for the Police Officers’ Association (POA) and unanimous approval of the POA MOU. He also acknowledged the hard work of staff and Council to consider potential budget cuts necessary to achieve a balanced annual budget, and informed the public that cuts proposed in the original Budget Balancing Plan related to library services and beach maintenance, among other things, had been removed from consideration. 57 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 2 of 13 ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION ITEM (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet, which were all uploaded to the City's website and Councilmember iPads: Closed Session Item #1 (1 email communication) PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEM — None. A motion was made by Burns, second by Van Der Mark, to recess to Closed Session for Item 1. RECESSED TO CLOSED SESSION — 5:34 PM CLOSED SESSION 1. 23-567 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 RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY ADJOURNED REGULAR MEETING — 6:00 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember Moser CLOSED SESSION REPORT BY CITY ATTORNEY — None. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet, which were all uploaded to the City's website and Councilmember iPads: Consent Calendar Item #2 (1 email communication) City Clerk Estanislau announced that staff made copies of the latest Revenue Opportunities and Budget Reductions worksheet for distribution to all. 58 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 3 of 13 PUBLIC COMMENTS (3-Minute Time Limit) — 27 Public Speakers The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. Cari Swan was called to speak and thanked Councilmember Burns for his focus on a balanced budget, even during his City Council campaign, and noted that people in the private sector well understand budget cuts are part of responsible management. (00:18:06) Sharon Petersen, a resident of Huntington Beach for over 30 years and former teacher, was called to speak and shared her opinions on the importance of public libraries, and services for senior and disabled residents. (00:20:49) Ada Hand was called to speak and shared her opinions and concerns related to the Air Show settlement, and balanced budget options being considered. She asked that Council focus on eliminating homelessness, adopting a housing plan, and making Huntington Beach safer. (00:22:51) Allie Plum, a Huntington Beach "immobile" homeowner for a decade, was called to speak and shared her delight at just learning there are no plans to cut library hours or close any libraries. Ms. Plum asked all Councilmembers to communicate facts and truth. (00:26:05) Tim Geddes, a resident of Huntington Beach since 1983 and former Finance Commission Chair, was called to speak and shared his support for not cutting back on any library services, especially the Banning Branch which serves his neighborhood. (00:28:16) David Rynerson was called to speak and shared his opinions and concerns related to the Air Show settlement. (00:30:56) Joseph Wilson, a concerned Huntington Beach homeowner, was called to speak and shared his opinions and concerns related to the Air Show settlement. (00:32:33) Michelle Ferry, Community College Instructor, was called to speak and shared her opinions and concerns related to proposed library service cutbacks (00:34:57) Shammy Dingus, a 40+-year resident of Huntington Beach, was called to speak and shared her opinions and concerns related to proposed budget cuts. (00:38:06) Jeanne Farrens was called to speak and shared her opinions and concerns related to proposed budget cuts. (00:41:41) Unnamed Guest was called to speak and expressed her appreciation for the budget changes in the latest Revenue Opportunities and Budget Reductions worksheet distributed at this meeting. She also noted the amazing Summer Reading Kick-off at the Library this past weekend. (00:44:45) Unnamed Guest was called to speak and thanked Councilmembers for budget changes in the latest Revenue Opportunities and Budget Reductions worksheet distributed at this meeting. He also asked for more details on specific line items. (00:47:23) Mike B., a long-time Huntington Beach resident, was called to speak and thanked his fellow citizens for publicly sharing their knowledge. He also shared his opinions related to the on-going concerns about 59 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 4 of 13 potentially objectionable library materials and stated his support for continuing the Community Café Forum. (00:50:39) Suzanne Hart was called to speak and stated her support for not making cuts to library services, and shared her concerns about potential consequences from other proposed budget cuts. (00:53:44) Mary Jacobs was called to speak and asked what is happening with Carr Park plans, and shared her concerns about any plans to reduce service to any City parks. Mayor Strickland asked her to complete a blue card for staff follow-up. (00:56:38) Unnamed Guest, a 43-year resident of Huntington Beach and former teacher, was called to speak and shared her appreciation for Councilmember concerns about the budget and their efforts to fix things that have been broken for a long time. (00:58:26) Russell Neal, a resident of Huntington Beach, was called to speak and shared his opinion that the current Council has not inherited a great financial situation. He further shared his concern for the physical safety of Mayor Pro Tem Van Der Mark after the many derogatory comments made during last week's discussion on her concerns regarding age-appropriate materials in the City's libraries. (00:59:51) Russell Carpe, a Huntington Beach resident for more than 13 years, was called to speak and shared his opinions and concerns related to proposed budget cuts. (01:02:46) Debra Falese was called to speak and shared her concerns about situations within the City which do not include freaking out about Pride flags or library books. (01:05:58) Mary Madigan, a resident of Huntington Beach, was called to speak and shared her opinions and concerns regarding proposed budget cuts. (01:07:47) Paul Simonds, Curt Pringle and Associates, representing their client Circuit, was called to speak and shared statistics to document the positive impact Circuit provides to Huntington Beach, especially for the Downtown area. (01:09:30) Ashley Dos Santos, a concerned and involved mother who lives in southeast Huntington Beach, was called to speak and shared her and her young daughter's concerns about any proposed library service cut-backs. (01:12:12) Kathy McGuire, a resident of Huntington Beach for over 30 years, was called to speak and thanked Councilmembers for their service. She read a written statement and summarized her sentiments by sharing her expectation that everyone be treated with kindness and acceptance as part of the mosaic of Huntington Beach. (01:15:29) Perry Clitheroe was called to speak and shared his opinions and concerns related to homelessness and the increasing costs of housing, and his support for free-market processes to improve economic freedom and tax revenue. (01:17:43) Rick Brown was called to speak and shared his opinions and concerns regarding the Air Show, and budget issues the current Councilmembers inherited. (01:19:55) 60 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 5 of 13 Valentina Bankhead, a resident of Huntington Beach, was called to speak and asked Councilmembers to be accurate and cautious with budget decisions, and shared her opinions and concerns on budget issues. (01:22:25) Connie Boardman, Former Mayor and Councilmember who also served during a time of economic downturn, was called to speak and shared her concerns about the published proposed budget cuts that would directly affect quality of life for residents. (01:25:13) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS — None. AB 1234 REPORTING — None. OPENNESS IN NEGOTIATION DISCLOSURES — None. CONSENT CALENDAR 2. 23-570 Adopted Resolution No. 2023-33 appointing Mark D. Alvarado as Interim Chief Financial Officer and approving the Employment Agreement A motion was made by Kalmick, second Burns to 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 approve and authorize the City Manager to execute the "Employment Agreement between the City of Huntington Beach and Mark D. Alvarado." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None PUBLIC HEARING 3. 23-566 Continued from June 20, 2023 with Public Hearing open — Adopted Resolution No. 2023-24 to Adopt a Budget for the City for Fiscal Year 2023/2024 and Authorized 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; Approved and Authorized the execution of Amendment No. 2 to the Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response Program; Approved and Authorized the Execution of Professional Services Contract between the City of Huntington Beach and National Council for Community Development (NDC) for Technical Assistance Services; Approved and 61 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 6 of 13 Authorized 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; and, Approved the Budget Balancing Plan to Proactively Address the Fiscal Year 2024/25 Projected General Fund Deficit No Councilmember had any ex parte communications to disclose. Sunny Han, Acting Chief Financial Officer, and Tom Herbel, City Engineer, presented a PowerPoint communication titled: City of Huntington Beach FY 2023/24 Budget Adoption with slides entitled: Presentation Overview; Proposed FY 2023/24 General Fund Budget Review; FY 2023/24 General Fund Proposed Budget Review; FY 2023/24 General Fund Proposed Revenues - $283.1M; FY 2023/24 General Fund Proposed Expenditures - $290.2M; Recommended FY 2023/24 Authorized Positions (3); General Fund Reserve Policy (2); FY 2023/24 Capital Improvement Program (CIP); FY 2023/24 CIP Budget; CIP AES Funding Summary; AES Projects Map; Budget Balancing Plan (2); Level 1 Options - Effective July 1, 2023 (3); Level 2 Options - Effective January 1, 2024 (4); Summary of Budget Balancing Plan; General Fund Long-Term Financial Plan (2); Boards and Commissions (2); FY 2023/24 Budget Approval Requested; and City Council Approval Requested (3), and Questions? Councilmembers and City Attorney Michael Gates discussed in greater detail proposed staffing needs for the City Attorney's Office. In summary, City Attorney Gates noted that if the listed positions are not approved by City Council, the alternative would be to contract with outside legal firms at a magnitude cost to the City of two or three times the cost of hiring additional staff. City Attorney Gates noted the current workload requires current staff put in 60+ hours per week, and this is not a sustainable way to operate. He believes the solution is to hire more staff, or contract with outside legal firms, and this budget presents the least expensive option. City Attorney Michael Gates clarified for the benefit of the public that all public comments are documented in the records, and the court system could review Public Hearing speaker comments if there is future litigation on the Public Hearing topic. Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet, which were all uploaded to the City's website and Councilmember iPads: Public Hearing Item #3 (327 email communications, and 1 Interdepartmental communication) Public Hearing Speakers — 25 Shirley Dettloff, Huntington Beach resident since 1964, was called to speak and thanked staff for an excellent job under very difficult circumstances in preparing this budget. Ms. Dettloff encouraged Councilmembers to allow appropriate time for citizen education and feedback during the budget process to ensure their concerns are adequately addressed. (02:47:38) Cathey Ryder, Huntington Beach resident since 1985, was called to speak and asked if every department made an attempt to reduce their budget. She shared her opinion that services should never be cut for seniors. She also requested a step back to review possible budget reductions for City Council, City Attorney and City Treasurer Departments. (02:50:43) 62 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 7 of 13 Pat Goodman was called to speak and asked that the balanced budget presented on June 6, 2023, be approved because in her opinion it provides a prudent way to proceed with the City's business. Ms. Goodman asked that Councilmembers take the time to ensure budget issues are addressed in ways that engage and inform the community, and shared her concerns about how some proposed cuts may impact potential revenue. (02:53:24) Ken Inouye, a 50-year resident of Huntington Beach, was called to speak and thanked Acting Chief Financial Officer Sunny Han for her outstanding service. Mr. Inouye referenced page 27, specifically the three years ending FY 2026/2027, which shows a budget deficit of $33M, and suggested now is the time for the City to come together to develop a comprehensive financial budget plan that addresses the upcoming deficit. He encouraged Councilmembers to listen to residents’ budget concerns and prepare a fiscally responsible plan. (02:56:33) Debbie Cook, former Councilmember who has lived in Huntington Beach most of her life, was called to speak and shared her opinions and expectation that newly-elected Councilmembers should first observe to learn the culture of the community they serve. Ms. Cook shared her concern about the City paying for a private vendor's California Environmental Quality Act (CEQA) EIR, and stated to the best of her knowledge a legal firm has never been hired by the City on a contingency basis. (02:59:05) Jonathan Rust, a resident of Huntington Beach since 2007, was called to speak and stated his opposition to cutting any of the library’s services. He also stated he doesn't understand why the City Attorney’s Office is the only department that apparently has made no budget cuts. Mr. Rust asked that the relationship with the vendor providing the Air Show be reviewed as he finds it unusual to continue a relationship with a company that has cost the City so much. (03:02:59) Kay Goddard was called to speak and shared her concern about why there isn't more transparency from the City Attorney’s Office. She stated support for leaving the libraries, parks and beach services alone because they are important not only for the residents but also out-of-town guests. She asked for far more transparency and inclusion if the Council decides to move to a two-year budget process. (03:04:42) Jacqueline Brodt, Huntington Beach Wetlands Conservancy Member and Friends of the Library Former Member, was called to speak and shared her opinion that this Council is not listening to a majority of their constituents. She expressed her appreciation for the last-minute decision to not cut any library services in the current budget proposal. (03:07:02) Erin Spivey, AKA Erin the Librarian, was called to speak and stated her opposition to any Library and Community Services budget cuts. Ms. Spivey invited everyone to attend the Main Street Library program, Books and Bikes, Wheels and Wonder on Saturday, July 1, 2023, before the Downtown carnival kick-off, providing an opportunity for people to decorate their bikes, scooters and strollers as well as safety checks. (03:09:26) Russell Carpe was called to speak and stated appreciation for the staff presentation and Councilmember interactions. He also expressed his disappointment that Channel 3 did not have a posting for this meeting. Mr. Carpe shared his opinion that money should never be taken from the budgets of parks, libraries or beaches. As a disabled senior citizen who regularly uses Circuit, he stated support for keeping that service available. (03:12:52) Terry Rose was called to speak and stated her confusion on what is or is not being cut from the current budget. Ms. Rose asked if the Library's Collection Development process will be impacted by the new 63 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 8 of 13 budget, and recommended that formal process be used by individuals rather than having the City dictate which books can be in the library. (03:14:39) Kimberly, who resides very close to Huntington Beach, was called to speak and shared her opinions regarding Councilmember transparency, costs for City lawsuits, and support for libraries, parks and beaches. (03:16:51) Chris Kluwe, a 15-year resident of Huntington Beach, was called to speak and shared his opinions related to the Mayor Pro Tem's proposed book ban. (03:20:38) Unnamed Guest was called to speak and expressed appreciation for learning that library services will not be cut in the proposed budget, and stated support for continuing the Circuit program and Community Café events. Unnamed Guest also stated opposition to increased costs for added staff in the City Attorney's Office, and support for properly addressing homelessness, libraries, parks and public work projects. (03:24:01) Mary Jacobs was called to speak and shared her opinion that the City Attorney has done a good job in past years of controlling costs, and her disappointment with the 36% increase in costs for this proposed budget. Ms. Jacobs shared her opinion that "empire building" shouldn't have any place in Huntington Beach, or the City Attorney's office. (03:26:21) Randy Kokal was called to speak and shared his opinions related to the direction Council appears to be heading which he believes is opposed by a majority of residents. He listed private censorship, secret settlements by the City Attorney, paying California Environmental Quality Act (CEQA) EIR costs for a private company, and systematic beheading of City Hall department heads as examples of actions the community does not support. (03:29:29) Karen Jackle was called to speak and shared her concerns related to street paving and requested there be enough funds in the budget for temporary repair of potholes. She also shared her opinions related to people not being properly prepared for Board and Commission meetings. Mayor Strickland asked Ms. Jackle to complete a blue card for staff follow-up. (03:32:51) Larry Slonim, a 42-year resident of Huntington Beach, was called to speak and shared his opinions regarding recent inappropriate comments made by Councilmembers. He further shared his frustration at not having enough information and time to clearly understand the proposed budget which does not give him a sense of confidence nor provide proper transparency. (03:35:04) Linda Moon, a 49-year resident of Huntington Beach, and retired Attorney, was called to speak and shared her opinions regarding proposed budget cuts for beaches, streets, sidewalks, parks, landscaping, libraries, senior services, and community recreation services which she believes will negatively impact quality of life in Huntington Beach. (03:38:46) Kane Durham was called to speak and shared concerns that this last-minute budget change may not be legal, and appears to be a violation of the Brown "Open Meetings" Act. He noted the numbers discrepancy between the staff presentation and the last-minute 3-page budget change. Mr. Durham expressed support for Circuit and the Community Café Forum, and stated opposition to the proposed addition of Full Time Employees (FTE) for the City Attorney's Office, as well as adding new multi-media employees. (03:42:01) 64 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 9 of 13 Amory Hanson was called to speak and stated his support for Item 3 (H), the creation of three new positions in the Communications Department. (03:44:44) Oscar Rodriguez, a 26-year resident of Huntington Beach and Council Candidate in 2022, was called to speak and shared his support for the importance of library services to the community. He stated his opinion that this City Council appears to be defunding programs that provide vital services for low-income residents and seniors. He asked Councilmembers to get priorities straight to support seniors, youth and the great residents of Huntington Beach. (03:45:13) Barry Kielsmeler, a resident of Huntington Beach for 35 years, was called to speak and stated his appreciation to staff and Councilmembers for the extensive time put into the budget process. He stated that the last-minute 3-page budget information handed out at the beginning of this meeting indicates to him that something is dysfunctional, and suggested approving the June 6, 2023, balanced budget and making the changes recommended this evening at the mid-year budget review. (03:47:04) Cathy Green was called to speak and stated her support for maintaining the Ranger Program in Central Park. Ms. Green provided a brief history of the program start-up and first-year costs provided through efforts of the Huntington Beach Police Officers’ Association, Huntington Beach Hospital, and support from many citizens and private organizations. She noted the City agreed to provide on-going costs for this successful public safety program. (03:50:12) Arline Kaplan, a resident of Huntington Beach for 45 years, was called to speak and shared how important the City's libraries were to her children. She stated support for libraries as places to learn as well as locations for essential community gatherings. Ms. Kaplan stated her opinion that some Councilmembers are using the budget to impose their hierarchical morality agenda. (03:52:45) There being no more speakers, Mayor Strickland closed the Public Hearing. Councilmember Kalmick thanked staff for their efforts in providing a balanced budget and shared his opinion the rushed process since May is a disservice to everyone. He further shared his belief that the City is not being funded at appropriate levels for world-class services. He noted the challenge of revenue increasing by 2 percent through property taxes while the cost of goods can triple or quadruple, and shared his concerns about the 2025/2026 budget currently projected at being upside down at $4.5M – $5.7M. He stated support for continuing the Circuit program, and suggested staff be asked to direct some one-time dollars to buy time and provide an opportunity to back-fill with anticipated State dollars. Councilmember Bolton stated support for Councilmember Kalmick's comments and shared her opinion this chaotic process is a disservice to residents. Councilmember Bolton and Acting Chief Financial Officer Han discussed budget line items in greater detail related to potential fees, fines and penalties related to the Housing lawsuit. Councilmember Bolton stated her opinion that Council decisions related to housing and the Airshow are putting the City at financial risk, and her expectation that moving forward residents will be provided ample opportunities to provide budget input. Councilmember Moser shared her concerns regarding the chaotic and compressed timeframe for the budget process; continuing the Managed Hiring Process; employee turnover and loss of institutional knowledge; no budget cuts and increased costs in the City Attorney's Office; Airshow settlement and CEQA EIR costs; financial ramifications from not having a certified Housing Element; eliminating the Community Café Forum unless sponsors and donors step forward; and her support for libraries and the many services they provide. She stated support for proceeding with the 2023/2024 balanced budget and allowing for more public input moving forward. 65 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 10 of 13 Mayor Strickland explained that after the POA Agreement was passed by a Councilmember vote of 7 – 0, the reality of the budget impact became apparent, and in early June he asked staff to engage Department Heads in balancing the 2023/2024 FY Budget, plus two years. Mayor Strickland emphasized that any proposed budget cuts during this process were provided by staff and were not Councilmember recommendations. He added that when it became apparent to staff that some of the budget cuts would not be supported by Councilmembers, they came forward with the budget presented today. Mayor Strickland stated that if his amended motion is approved, there will be a $6M surplus next year vs a $7.4M deficit if Council does nothing. He shared his opinion that fixing the budget today is preferred to waiting for an emergency situation to develop which could limit options, and noted many economists are predicting a recession for next year. Mayor Strickland commended Acting Chief Financial Officer Han, City Manager Zelinka, and Department Heads for providing accommodations to create a budget which is good for maintaining services, good for the taxpayers, good for Huntington Beach, and a good financial path for the next two years. Councilmember McKeon cleared up the misunderstanding expressed by many that the City's budget shortfall was caused by the Airshow settlement. He clarified the actual settlement amount was $4.9M with a $1.9M payment made this year and the remaining amount will be paid in increments of $500,000 over the next six years. He confirmed with Acting Chief Financial Officer Han that the $500,000 payments over the next six years are incorporated in the presented budget numbers for the years indicated. He added that litigation with the oil company responsible for the leak is still pending. Councilmember McKeon confirmed with City Attorney Gates that of the 40 current active lawsuits, two are housing lawsuits, plus the Petition for Review submitted to the Supreme Court. City Attorney Gates stated that most of the lawsuits handled by his office relate to defending the good work of the Police Department, public property and vehicle accident cases. City Attorney Gates added that he has never requested funds for an office remodel, and has no idea where that information originated. Councilmember McKeon clarified for the record that no libraries are being closed, nor are hours of service being reduced; cuts are not being made to Senior Center hours, tree trimming, beach restroom cleaning, Call Center staffing, Park Rangers, Edison and Murdy Park hours, Downtown power washing, Pier Plaza, Blufftop and Sunset landscaping, nor Code Enforcement Technician and Economic Development Manager positions. City Attorney Gates clarified there will always be unknown costs with litigation, and stated that when work is done in house, the lawyer costs for their time does not increase with additional lawsuits. He added that if it becomes necessary to involve outside counsel, there are additional costs incurred. In response to a request made by Councilmember Bolton, City Attorney Gates agreed to provide her with a complete list of active litigation cases. Councilmember Kalmick stated he believes there are lawsuits which take hardly any staff time, and others that may utilize a lot of staff time. He stated that the City Attorney's Office requesting four more attorneys is a problem for him and many residents. City Attorney Gates replied that there are less than five cases where the City is a plaintiff, and the City is a defendant for the remaining cases, and that he is only asking for one more litigator. 66 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 11 of 13 Councilmember Kalmick stated he does not believe staff had the time to do a thoughtful dive into the budget which could take a year. Councilmember Kalmick and Mayor Strickland further discussed whether or not it is necessary to make cuts tonight for funds that might not actually be needed until FY2025/2026. Councilmember Kalmick stated his objections to the fact that not even staff has a copy of the Airshow settlement, and in his opinion the information that has been made public is missing substantial information that the public needs to see. City Attorney Gates clarified there are a host of reasons the Airshow settlement is not yet a public document, the number one reason being pending litigation, and there is no requirement to disclose a document that may impact pending litigation. Secondly, he explained Councilmembers are aware there is some additional information in the settlement which is not part of the final settlement that results in the dismissal. He further stated he will not take any action that deviates from what the law requires him to do that could ultimately compromise the City, but noted if instructed by a judge to release more information, he will oblige and also noted that he has the support of other attorneys for this position. Councilmember Kalmick asked for clarification, and Mayor Strickland confirmed, that no changes are being made to the City Attorney's budget. There was Councilmember agreement to move the Circuit program to Level 2 Budget Reductions (January 1, 2024) to allow time to secure anticipated funding. A motion was made by Kalmick, second Bolton to approve the budget proposal first presented on June 6, 2023; adding revenue sources more recently identified; removing the FTE positions for the City Attorney's Office; and providing Budget Study Sessions over the next few months for resident input regarding the 2025/2026 Budget, including discussions on additional revenue sources. The motion failed by the following roll call vote: AYES: Kalmick, Moser, and Bolton NOES: Van Der Mark, Strickland, McKeon, and Burns A substitute motion was made by Strickland, second Burns to 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) as amended to include the impacts of the Police Officers' Association (POA) MOU, additional parking revenues, and revised Budget Balancing Plan as amended (N); and, 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, 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, authorize the appropriation and transfer of $3,903,803 from the General Fund Equipment Replacement Reserve to the Equipment Replacement Fund 324; and, approve the return to a 12 year paving cycle; and, 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, 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, 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, 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 67 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 12 of 13 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, 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, 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, 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, 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, approve the Budget Balancing Plan to proactively address the Fiscal Year 2024/25 Projected General Fund Deficit; (Attachment 12); and, as amended move Budget Reductions identified in Level 1 to Level 2 per revised Plan: 3) Circuit (replace General Fund subsidy with user rate adjustment, ad revenues, vendor funding, or other alternatives); and Level 2 to Level 1 per revised Plan: 2) Reclassify Multimedia Officer to Multimedia Coordinator, 4) Reduce Various Public Works contract and maintenance budgets, and 6) Community Café Community Forum (costs for consultants, food and supplies only; continuation of event with sponsors, donations, and in-kind); and, authorize staff to meet with labor associations on modifications identified under Level 1 per Revised Plan: 2) Employee Work Enhancements; and, approve modifications to the frequency of selected 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. as amended to defer to the Boards, Commissions, Committees (BCC's) Ad Hoc Committee. The substitute motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None Sunny Han, Acting Chief Financial Officer, noted for clarification that Recommended Action, Item A, is amended to include the impacts of the POA MOU, the additional parking revenue, and Revised Budget Balancing Plan; amended Item N for moving Items #2, #6, and #16 from Level 2 to Level 1; and authorizing staff to meet with Labor associations for modifications to Employee Work Enhancements (Level 1, Item 2) and considerations to keeping City Hall open Monday through Friday. ADMINISTRATIVE ITEMS 4. 23-568 Adopted 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 Theresa St. Peter, Interim Human Resources Director, and Travis Hopkins, Assistant City Manager, presented a PowerPoint communication titled Consideration of the Proposed Memorandum of Understanding with the Police Management Association (PMA) with slides entitled: Overview; Proposed Memorandum of Understanding; Fiscal Impact; City Council Options; and Questions? 68 City Council/PFA Adjourned Regular Meeting Minutes June 26, 2023 Page 13 of 13 A motion was made by Strickland, second Van Der Mark to 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, authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2023-32. The motion carried by the following vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None ADJOURNMENT — at 10:40 PM, Councilmember Kalmick acknowledged the great work of Chief Assistant City Attorney Mike Vigliotta who is leaving Huntington Beach to assume the position of City Attorney for the City of Orange. A motion was made by McKeon, second Burns to adjourn to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on 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 _______________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 69 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-626 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Shannon Levin, Council Policy Analyst Subject: Approval of Comments by the Jet Noise Commission to the Federal Aviation Administration Statement of Issue: The Jet Noise Commission (JNC) acts as an advisory body to the City Council on matters pertaining to jet noise and activities from commercial aviation traffic flying over Huntington Beach. On May 1, 2023 the Federal Aviation Administration (FAA) issued a request for public comments from interest parties regarding the aviation noise impacts by July 31, 2023. The JNC has prepared a comment letter for City Council’s consideration and for submittal to the FAA. Financial Impact: Not applicable Recommended Action: Approve the comment letter, and direct staff to submit the letter to the FAA. Alternative Action(s): Do not approve the JNC’s comment letter, or approve in part, and direct staff accordingly. Analysis: On May 1, 2023,the FAA invited public comments from interested parties to review four key considerations of its civil aviation noise policy, in the context of noise metrics and noise thresholds. The civil aviation noise policy sets forth how the FAA analyzes, explains, and publicly presents changes in noise exposure from aviation activity: recreational and commercial fixed wing airplanes, helicopters, commercial space transportation vehicles, unmanned aircraft systems, as well as emerging technology vehicles (newer types of vehicles that will operate in U.S. airspace). The FAA will consider how changes to the civil aviation noise policy may better inform agency decision making, the types of impacts it considers in making decisions (e.g.,community annoyance, City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™70 File #:23-626 MEETING DATE:7/18/2023 decision making, the types of impacts it considers in making decisions (e.g.,community annoyance, certain types of adverse health impacts highly correlated with aviation noise exposure), and potential improvements to how the FAA analyzes, explains, and presents changes in exposure to civil aviation noise. The Jet Noise Commission has composed a letter providing comments to the FAA regarding noise impacts to the Huntington Beach community. A special meeting was convened on June 13, 2023 to approve the Commission’s comments. Comments to the FAA focus on noise burdens imposed on the community after the NextGen and the Southern California Metroplex implementation in 2016. The flight paths of three airports (LAX, Santa Ana, and Long Beach) converge over Huntington Beach. Recommendations to the FAA include adopting a CNEL standard as an economic mitigation metric, adoption of the mitigation metric to no higher that 55dB, adjustment to approaches and altitudes, and the return to over-ocean approaches to Long Beach Airport. The Commission unanimously approved the letter for City Council’s consideration and for submittal to the FAA. 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. Huntington Beach Comments Letter to FAA 2. Jet Noise Commission FAA presentation City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™71 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR July 19, 2023 Federal Aviation Administration U.S. Department of Transportation (DOT) Docket Operations, M–30, 1200 New Jersey Avenue SE, Room W12–140, West Building Ground Floor Washington, DC 20590–0001 Re: Docket No.: FAA-2023-0855 Request for Comments on the Federal Aviation Administration's Review of the Civil Aviation Noise Policy The City of Huntington Beach (the “City”) welcomes the opportunity to comment upon the significant noise burdens that were imposed on it by NextGen and the Southern California Metroplex (“Metroplex”) starting in approximately 2016. FAA’s current 65 DNL metric for assessing “significant” noise fails to account for the real-world, significant noise burdens created by multiple, continuous, minute-by-minute, moderate-level dB jet noise events. There is unceasing “drip, drip, drip” annoyance in areas that are not contiguous to any airports, yet current metrics find this noise not to be “significant.” This is a particular problem for Huntington Beach where arrival paths into three separate regional airports (Long Beach, Santa Ana, and LAX) have been designed by Metroplex to converge at altitudes between 1600 and 7000 ft. over large areas of our city.1 We support changes, additions, or replacement of the current noise metrics used by FAA, or other actions that would reduce the real-world aircraft noise that adversely affects our residents, schools, and businesses. This Comment addresses Question Nos. 2 (Operations of Air Vehicles), 3 (DNL), 4 (Averaging), 5 (Decision Making Noise Metrics), 6 (Communications), 7 (NEPA and Land Use Noise Thresholds Established Using DNL or for Another Cumulative Noise Metric), 8 (FAA Noise Thresholds Using Single-Event or Operational Metrics), and 11 (Literature Review). FAA SHOULD CREATE SEPARATE METRICS FOR ECONOMIC MITIGATION AND ANNOYANCE Huntington Beach specifically requests that FAA create two metrics. Similar to the current 65 DNL standard, the first would establish a measure for required economic mitigation. The second would not require mitigation outlays, but would separately inform airspace management decisions and recognize the real-world significance of the “drip, drip, drip” effect in areas such as Huntington Beach. Huntington Beach believes that any changes to the economic mitigation metric being considered by FAA likely will have minimal application to the City and no improvement for residents, schools, and businesses. Nonetheless, Huntington Beach suggests that the current 65 DNL level is unreasonably high, and demeans the word “significant” as understood by our 1 This does not even include the additional noise burden from departure overflights from each of these three and other Southern California airports that cross Huntington Beach at higher altitudes. draft72 constituents and the public at large. Accordingly, we recommend that FAA (i) adopt a CNEL standard as the economic mitigation metric, and (ii) adopt for that mitigation metric the 45 dB level recommended by the WHO, or at least the European level of no higher than 55 dB. For Huntington Beach, a more important new metric should be adopted that would address the “drip, drip, drip” effect and inform airspace management decisions such as Metroplex. Huntington Beach does not have the expertise to create a specific algorithm or metric for determining exactly how “drip, drip, drip” noise should be measured or considered. However, the City’s experiences with Metroplex and common sense suggests that in addition to any economic mitigation standards, FAA should use a second metric taking into consideration the following factors when modeling aircraft routing: 1.The number of aircraft flying within a horizontal proximity creating noise above ambient; 2.The altitude of such aircraft; 3.The noise above ambient of each aircraft; 4.The duration of each noise event above ambient; 5.The spacing between noise events above ambient; and 6.Any other factors impacting above ambient, but below economic mitigation noise.2 These numbers can be determined by Zip Code or other location identifiers, and given a relative ranking of annoyance above ambient but below the economic mitigation threshold. That ranking would then be added to existing and future routing models as a factor to be weighed and considered. Adding these variables to computer models should result in airspace management that is not controlled by noise considerations, but which also does not ignore that the real-world consequences of airspace management decisions are significant even when they may not meet the economic mitigation metric. More important and as demanded by fundamental fairness, it would more equitably spread the regional noise burden from three major airports that Metroplex has singularly imposed on Huntington Beach in Southern California.3 REDUCING NOISE ANNOYANCE IN HUNTINGTON BEACH In addition to revised or new metrics, in the specific case of Huntington Beach, two other changes are proposed by the City that would immediately and definitively lower noise over the City: firstly, a return for over-ocean approaches to Long Beach (KLGB) to pre-NextGen dispersion patterns; secondly, to make a CDA approach into KLGB the default for over-land approaches, rather than the current as-requested basis which is used over 70% of the time by arriving pilots. 2 One metric for consideration is the Number-Above (“Nabove”) or possibly Nabove per hour. Nabove is the only metric that combines single event noise with the number of aircraft operations. As noted by Penn State research, Time-above could also be a useful metric to properly account for the duration of aircraft operations over a particular area. The duration of large commercial aircraft over Huntington Beach ranges from 30 seconds to 3 minutes, depending on which of the three regional airports is involved and whether the aircraft are departures or arrivals. 3 If nothing has changed over Huntington Beach, as periodically has been suggested by FAA, there would have been no need for Metroplex in the first instance. FAA needs to abandon any notion that it would be “unfair” to shift to other areas any increased noise burdens imposed on Huntington Beach by Metroplex. The unfairness was shifting the burden of three major airports to Huntington Beach in the first instance. draft73 Arrivals are a particular noise problem as Huntington Beach is simultaneously overflown for approaches into all three of these airports. LGB arrivals are generally at 2500 ft. and below over Huntington Beach; SNA arrivals are around 5000 ft.; LAX arrivals are around 7000 ft. However, some flights into LGB fly over Huntington Beach as low as 1300 ft. for no discernible reason.4 While all jet aircraft are noisy, there is a direct correlation between aircraft altitude (proximity) and noise burden. But it is the cumulative “drip, drip, drip” effect of constant overflight noise minutes and at times seconds apart seven days a week into three separate airports with no relief that has dominated the noise complaints emanating from Huntington Beach residents. In fact, the number of noise complaints from Huntington Beach residents since the implementation of Metroplex have consistently outnumbered complaints from Long Beach residents because Long Beach residents only have to deal with noise from one airport while Huntington Beach has been getting non-stop approach noise into three major airports since the Metroplex implementation.5 In response to substantial noise complaints from citizens following the implementation of Metroplex, Huntington Beach formed a citizens’ Jet Noise Working Group and subsequently a City Council-appointed Jet Noise Commission. The Working Group and Commission separately tried on multiple occasions to engage FAA in discussions about the impacts of Metroplex and proposed alternatives. FAA has consistently failed to meaningfully engage or to even acknowledge that Metroplex created a significant noise burden over Huntington Beach. The City’s multiple requests for FAA engagement were supported via a bipartisan letter from U.S Congressional members and then-Quiet Skies Caucus members Michelle Steel and Alan Lowenthal to FAA Acting Administrator Billy Nolen, dated June 7, 2022. (Copy attached.) Huntington Beach is not seeking to expand noise mitigation costs. Rather, we are suggesting that real-life noise impacts need to be considered beyond those which would require costly mitigation outlays. Those can be as simple as making minor adjustments to aircraft approaches and altitudes that would ease the noise burden at least some. For example, Huntington Beach is under an approach path into LGB that has an IFR procedure to cross waypoint “LUCIG” at 3000 ft. and to do a continuous descent approach into the LGB RW30TZ. On VFR, pilots can fly close to that given permission from TRACON provided there are no safety issues. However, it appears that TRACON routinely directs aircraft to cross “LUCIG” at 1600 ft. unless pilots request a higher approach. Roughly, 80% of the time pilots from one particular carrier request and receive approval for the 3000 ft. approach. However, other carriers have not been as sympathetic, and TRACON generally directs these flights to cross at 1600 ft. There is likely a > 1.5dB shift between crossing LUCIG at 3000 ft. and 1600 ft. Defaulting all commercial traffic to 3000 ft. at LUCIG would make a noticeable difference to the City’s noise exposure and reduce noise complaints into LGB. It also would not require any changes to Metroplex; it simply would be a direction to TRACON to default to the 3000 ft. altitude approach rather than 1600 ft. Safety exceptions would always apply. Despite support for this change from Long Beach Airport and at least one major carrier, FAA refused to even consider such a minor modification that would (1) reduce the noise burden 4 These low-level approaches are still 10 miles from LGB, requiring aircraft to power up to maintain this low- altitude approach. This only increases noise levels, burns additional fuel, and creates unnecessary carbon emissions. These outcomes are entirely inconsistent with the stated goals of NextGen. 5 This does not include the higher altitude departures and overflights that add an additional noise burden to Huntington Beach.draft74 over Huntington Beach, (2) save fuel, and (3) reduce carbon emissions. It is unknown why FAA has not supported such a modification other than it appears FAA does not want to open a “can of worms” by acknowledging that noise is a significant problem below existing thresholds for economic mitigation. That defies common sense and ongoing studies evidencing adverse health effects from aircraft noise at levels well below 65 DNL. FAA also ignores that the 1600 ft. approach not only unnecessarily burns extra fuel and adds to the carbon burden, it is well below the 3000 ft. mixing threshold for jet emissions. FAA has determined that 3000 ft. and above represents the altitude where aircraft emissions do not mix with air near the ground. The corollary is that mixing with ground air does occur when jet aircraft are below 3000 ft. If TRACON uses the 3000 ft. approach into LBG as the default rather than 1600 ft., that should significantly reduce pollution at ground level. CONCLUSION Beyond assessing noise metrics academically, FAA needs to acknowledge the real-world noise impacts of Metroplex on communities such as Huntington Beach, and work in good faith with local representatives on mitigating alternatives. As noted, we are located between three major airports in the Southern California region, Long Beach, Santa Ana, and LAX. Arrivals and departures from each of these airports now fly constantly over our residents spaced only a few minutes or less apart during waking hours and intermittently at all hours of the night seven days a week. There is no respite. Prior to Metroplex, aircraft were much more dispersed and at higher altitudes on approach. Unfortunately, the Metroplex changes have routed aircraft along much more condensed flight paths over Huntington Beach at significantly lower altitudes. Huntington Beach residents have been materially harmed by Metroplex in their quiet enjoyment of their properties and FAA’s continued reliance on the 65 DNL standard for noise “significance.” FAA needs to acknowledge the material and adverse effects concentrated, low- altitude jet aircraft have had on the City, and to work with the City particularly on approach alternatives that would provide at least some relief. Airspace routing determinations need to be informed by actual impacts over the ground as opposed to those designated for economic mitigation. We thank you for your consideration of these vitally important issues to Huntington Beach. Sincerely, Tony Strickland cc: Honorable Katie Porter, U.S. Representative - CA 47th Congressional District draft75 Jet Noise Commission Recommended Response to FAA’s Request for Comment of Aviation Noise Policy July 18, 2023 76 Summary of FAA NextGen Impact on Huntington Beach •The City has focused on the negative impact of jet noise for more than 5 years; first thru a Jet Noise Working Group than via a Council-appointed Jet Noise Commission (JNC) formed in January 2019. •The JNC has developed local cooperation including Long Beach Airport & Southwest Airlines (SWA) with no tangible results •In 2021, the FAA rejected a collaborative and well-designed solution submitted by SWA to alleviate some negative impact for HB. •There is a Request for Comment on the FAA’s Review of Aviation Noise Policy –in which the JNC has drafted a formal response. •JNC is requesting Council to approve the comment letter and submit to the FAA. 77 Background Info •Huntington Beach is within flight paths for three major airports: •Long Beach (LGB) •Los Angeles (LAX) •John Wayne/Santa Ana (SNA) •Each of these airports have both departures and arrivals that cross the City •FAA implemented ‘NextGen’ in the spring of 2017 and shortly after the NextGen implementation, City residents reported a significant increase in air traffic and related noise •City Council created a task force which later formed a Jet Noise Commission (JNC) •The JNC conducted extensive research for more than a year to identify the root cause of the issue(s) •Primary issues include increased noise, safety concerns from lower flights & environmental concerns •JNC identified the most significant impact was a result of LGB arrivals 78 3° CDA Request to FAA •In conjunction with Southwest Airlines (SWA) and LGB: •A proposal for a 3°CDA path for LGB arrivals was developed in 2020 •FAA denied SWA’s initial proposal in Dec 2020 and again in 2021 •HB pursued FAA for 2 years and met with elected officials & City staff on August 25, 2021 •FAA’s denied 3°CDA proposal •safety and potential “VFR” aircraft traffic •FAA wanted all LGB approaches at 1600’ over Huntington Beach •FAA outlined difficulties with a CDA mandate 79 Recommendations •The most simple & feasible solution is a higher LB approach with a slower descent over HB •This recommendation is consistent with the FAA’s “Continuous Descent Approaches” (CDA) recommendation, which efficiently: •Minimizes noise •Minimizes fuel consumption •Minimizes emissions •Meetings have been held with stakeholders including: •Long Beach Airport •Airlines (mainly Southwest) •Elected officials 80 Request for Council Action •Comments on the FAA’s Review of Aviation Noise Policy due by July 31, 2023. •The FAA’s comment parameters are extremely limited in scope. •Although the JNC does not anticipate any near-term action it is in the best interest of the City to provide a formal written response to the FAA. •The proposed comments to the FAA provide facts and practical solutions with no cost or negative effects to the City. •As such, the JNC respectively requests that City Council authorizes the Mayor to execute the attached response letter to the FAA’s Request for Comment. 81 THANK YOU 82 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-559 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Shannon Levin, Council Policy Analyst Subject: Consider positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC). Statement of Issue: On June 21, 2023 the IRC, comprised of Mayor Tony Strickland,Mayor Pro Tem Van Der Mark, and Council Member Pat Burns, is recommending positions on legislative items including State bills and an Assembly Constitutional Amendment, which are presented to the full City Council for consideration. Financial Impact: Not applicable Recommended Action: Approve one or more of the following positions on State legislation: A) OPPOSE AB (Ward) Change of Gender and Sex Identifier B) OPPOSE AB 957 (Ward) Family Law: Gender Identity C) OPPOSE SB 58 (Wiener) Controlled Substances: Decriminalization of Certain Hallucinogenic Substances D) OPPOSE SB 253 (Wiener) Climate Corporate Data Accountability Act E) OPPOSE SB 770 (Wiener/McGuire) Health Care: Unified Health Care Financing F) OPPOSE AB 1287 (Alvarez) Density Bonus Law G) OPPOSE SB 7 (Blakespear) The Homeless Housing Obligation Act H) OPPOSE SB 555 (Wahab) Stable Affordable Housing Act of 2023 I) OPPOSE SB 584 (Limon/Caballero) Laborforce housing: Short-Term Rental Tax Law J) OPPOSE SB 50 (Bradford) Vehicles: Enforcement K) OPPOSE SB 838 (Menjivar) Victim Compensation: Use of Force by a Law Enforcement Officer L) OPPOSE Assembly Constitutional Amendment (ACA) 4- Eligibility to Vote City of Huntington Beach Printed on 7/13/2023Page 1 of 9 powered by Legistar™83 File #:23-559 MEETING DATE:7/18/2023 Alternative Action(s): Do not approve one or more recommended actions and direct staff accordingly. Analysis: On June 21, 2023, the IRC comprised of Mayor Strickland, Mayor Pro Tem Van Der Mark, and Councilmember Burns voted to recommend to the City Council the following positions on legislative issues. The following is a summary of the items voted upon and positions taken by the IRC. 1. AB 223 (Ward) Change of gender and sex identifier. This bill provides for specified records to be kept confidential by the courts where minors petition for a change of gender and sex identifier. In 2017, SB 179 (Atkins, Ch. 853, Stats. 2017) restructured the processes for individuals to change their names and genders to conform with their gender identity and to have these changes reflected on their birth certificates. In addition, a streamlined process was established for changing one’s name and gender and having an updated birth certificate issued as part of a single petition. Specific guidelines and required procedures were laid out for petitioners. A number of bills last session further honed these processes and fine-tuned the applicable provisions, in part in response to issues identified by the Judicial Council of California. Special procedural rules apply when the petitioner is a minor. In response to concerns about the privacy and wellbeing of these minor petitioners, this bill requires petitions and associated papers to be kept confidential by the courts when a minor petitions for a change of gender and sex identifier or a name change and recognition of the petitioner’s gender and sex identifier. The court is required to limit access to the records to only the minor and specified representatives of the minor, including the minor’s parents or guardians and any legal representatives. Status: July 12, 2023- 3rd reading in Senate Judiciary Committee. IRC voted 3-0 to OPPOSE AB 223. 2. AB 957 (Wilson) Family law: gender identity. This bill clarifies that a family court, when determining the best interest of the child in a proceeding to determine custody or visitation for a child, shall consider, as part of the consideration of the health, safety, and welfare of the child, a parent’s affirmation of the child’s gender identity. Under California law, the overarching principle in a court’s determination in a parental custody or visitation case is the best interest of the child. What constitutes the best interest of the child is an intensely fact-specific determination that requires the court to look at the child’s health, safety, and welfare, the child’s relationship with each parent, and other factors that may contribute to the overall wellbeing of the child. The Legislature has, over the past few decades, added more specific factors for courts to consider (such as in cases where there have been allegations of domestic violence) and expressly prohibited courts from considering other factors (such as the immigration status of a parent) to ensure that the child’s best interest remains paramount. The consideration of a parent’s affirmance, or lack thereof, will not be determinative in the court’s City of Huntington Beach Printed on 7/13/2023Page 2 of 9 powered by Legistar™84 File #:23-559 MEETING DATE:7/18/2023 consideration of a parent’s affirmance, or lack thereof, will not be determinative in the court’s custody or visitation order; the bill intends to clarify that gender-affirmance should be considered as part of the comprehensive determination of the child’s best interest. Status: July 5, 2023- ordered to 3rd reading in Senate Judiciary Committee. IRC voted 3-0 to OPPOSE AB 957. 3.SB 58 (Wiener) Controlled substances: decriminalization of certain hallucinogenic substances. This bill makes lawful the possession, preparation, obtaining, transfer, as specified, or transportation of, specified quantities of psilocybin, psilocyn, dimethyltryptamine (DMT), ibogaine, and mescaline, for personal use or facilitated or supported use, as defined, by and with persons 21 years of age or older. Existing law classified controlled substances into five schedules according to their danger and potential for abuse. Schedule I controlled substances have the greatest restrictions and penalties including prohibiting the prescribing of a Schedule I controlled substance. The law classifies several hallucinogenic substances including DMT, ibogaine, mescaline, psilocybin, and psilocin as Schedule I substances. Schedule I substances are defined as those controlled substances having no medical utility and that have a high potential for abuse. There is research, however, that indicates that many of these substances have therapeutic benefits. Efforts to deprioritize the policing or prosecution of conduct related to certain hallucinogens and to acknowledge the therapeutic value of hallucinogens have gained support in recent years. Since 2019, local measures to deprioritize the policing or prosecution of conduct related to hallucinogens have passed in Oakland, Santa Cruz, Ann Arbor, Denver, and Washington D.C, among others. This bill provides that all of the following is lawful for a natural person 21 years of age or older and is not a violation of state or local law: a) The possession, preparation, obtaining, or transportation of DMT, ibogaine, psilocybin, and psilocyn for personal use or for facilitated or supported use. b) The ingesting of DMT, ibogaine, psilocybin, and psilocyn. c) The possession, planting, cultivating, harvesting, or processing of plants capable of producing DMT, ibogaine, psilocybin, or psilocyn, on property owned or controlled by a person, for personal use or for facilitated or supported use by that person, and possession of any product produced by those plants including spores or mycelium capable of producing mushrooms or other material which contain psilocybin or psilocin for that purpose. d) The assisting of another person, 21 years of age or older, with any of the above acts. Status: July 11, 2023-referred to Appropriations Committee. IRC voted 3-0 to OPPOSE SB 58. City of Huntington Beach Printed on 7/13/2023Page 3 of 9 powered by Legistar™85 File #:23-559 MEETING DATE:7/18/2023 4.SB 253 (Wiener) Climate Corporate Data Accountability Act. This bill would require any partnership, corporation, limited liability company, or other U.S. business entity with total annual revenues in excess of one billion dollars and that does business in California to publicly report their annual greenhouse gas (GHG) emissions, as specified by the California Air Resources Board (ARB). Existing law requires ARB, pursuant to California Global Warming Solutions Act of 2006 to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020, and requires corporations in California to report specified operating information to the Secretary of State. This bill establishes the Climate Corporate Data Accountability Act and requires, on or before January 1, 2025, ARB to develop and adopt regulations to require a reporting entity to annually disclose to the emissions reporting organization and verify all of the reporting entity’s Scope 1, 2, and 3 emissions. According to the Senate Appropriations Committee, this bill would result in unknown ongoing costs, likely in the millions of dollars annually (General Fund) for ARB to implement the provisions of this bill. These costs would be offset by revenues from an annual filing fee on reporting entities. Status: July 10, 2023- referred to Appropriations Committee IRC voted 3-0 to OPPOSE 5.SB 770 (Wiener/McGuire) Health care: unified health care financing This bill directs the Secretary of the California Health and Human Services Agency to pursue waiver discussions with the federal government with the objective of a unified health care financing system that incorporates specific features, including a comprehensive package of medical, behavioral health, pharmaceutical, dental, and vision benefits, without cost sharing for essential services and treatments. This bill requires the Secretary of the California Health and Human Services Agency (CalHHS) to pursue discussions with the federal government to obtain a waiver to enable creation of a comprehensive health care system with unified financing (UF). The bill specifies that the health care system will include comprehensive benefits, including medical, behavioral health, drug, dental, vision, and long-term care services; no cost sharing for essential services; greater freedom for patients to choose providers; UF; cost-effectiveness by leveraging purchasing power; a program to ensure a just transition for individuals whose jobs are disrupted by the creation of a single payer system; sufficient reserves to guarantee solvency during public health emergencies and other economic disruptions; and other features. The bill also requires the Secretary of CalHSS (Secretary) to establish a Waiver Development Workgroup (workgroup) to advise the Governor on federal negotiations, and requires the Secretary to report to the Legislature, no later than June 1, 2024, recommendations regarding the elements to be included in a formal waiver application, and all legislative actions necessary to proceed with the application and establish a UF system consistent with the outcomes of CalHHS’s discussions with the federal government. City of Huntington Beach Printed on 7/13/2023Page 4 of 9 powered by Legistar™86 File #:23-559 MEETING DATE:7/18/2023 According to CalHHS, establishing the workgroup, conducting quarterly meetings, providing quarterly updates, and submitting a report to the Legislature with recommendations by June 2024 will cost CalHHS an indeterminate amount, potentially in the low millions of dollars for fiscal year 2023-24 and ongoing (General Fund). Status: July 12, 2023- first reading in Assembly Appropriations Committee. IRC voted 3-0 to OPPOSE 6. AB 1287 (Alvarez) Density Bonus Law. Requires a city, county, or city and county to grant additional density, concessions, and incentives if an applicant agrees to include additional low or moderate-income units on top of the maximum amount of units for lower, very low, or moderate-income units. State law, known as density bonus law, grants certain benefits to developers who build affordable units in order to encourage greater affordable housing production. Density bonus law requires cities and counties to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least one of the following: · 10% of the total units of a housing development for lower income households; · 5% of the total units of a housing development for very low-income households; · A senior citizen housing development or mobile home park; · 10% of the units in a common interest development (CID) for moderate-income households; ·10% of the total units for transitional foster youth, disabled veterans, or homeless persons; or · 20% of the total units for lower income students in a student housing development. If a project meets one of these conditions, the city or county must allow an increase in density on a sliding scale from 20%-50% over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan, depending on the percentage of affordable units. Density bonus law also grants certain reductions in minimum parking requirements and grants “incentives or concessions” that can be used to modify development policies that add costs or reduce the number of units a developer can build on a site. The number of incentives or concessions a project may be eligible for is based on the percentage of affordable units contained in the project, up to a maximum of four. Incentives and concessions can vary widely based on the individual projects, but examples can include reduced fees, waivers of zoning codes, or reduced parking requirements. Density bonus law also allows developer waivers of any development standards that physically prevents the developer from constructing a project at the density allowed, along with the incentives or concessions, under density bonus law. Assembly Bill 1287 expands density bonus for certain projects that already qualify for bonuses. First, AB 1287 increases the number of incentives or concessions for 100% affordable projects from four to five. Second, AB 1287 grants projects that include at least 16% of units for very low- income households, or at least 45% for moderate income in a development in which the units are for sale, four incentives or concessions. Third, AB 1287 requires a local agency to grant additional density bonus when an applicant proposes to construct a housing development that does the City of Huntington Beach Printed on 7/13/2023Page 5 of 9 powered by Legistar™87 File #:23-559 MEETING DATE:7/18/2023 following: · Dedicates at least 10% of total units for lower-income households; ·Includes additional rental or for-sale units for very low- or moderate-income households; and · Meets any of the following: §For projects with base density units of 10% for lower-income households, provides 24% of total units to lower-income households; §For projects with base density units of 5% of total units for very low-income households, provides 15% of total units to very low-income households; §For projects with base density units of 10% of total units for sale to moderate income households, provides 44% of total units to moderate-income units. Status: July 10, 2023- Referred to Senate Appropriations Committee IRC voted 3-0 to OPPOSE 7. SB 7 (Blakespear) The Homeless Housing Obligation Act. SB 7 would require the regional housing needs assessment (RHNA) to include homeless as an income category for local housing element planning purposes, and enact the Homeless Housing Obligation Act, which requires each city and county to develop a housing obligation plan to provide housing opportunities for each homeless person within its jurisdiction by January 1, 2030, as specified. The bill would also require the Department of Housing and Community Development (HCD) to develop and administer a new program, upon appropriation of funding by the Legislature, to provide grants to cities, counties, and nonprofit housing entities to fulfill the obligations to provide housing opportunities for homeless persons. Status: May 15, 2023- placed in Suspense File. IRC voted 3-0 to OPPOSE 8. SB 555 (Wahab) Stable Affordable Housing Act of 2023. This bill creates the Stable Affordable Housing Act of 2023 (Act) for the purposes of planning for the development of social housing through a mix of acquisition and new production. SB 555 sets a 10-year goal for the state to create 1.2 million units of social housing through a mix of acquisition and new production; Sets a five-year goal for the state to create 600,000 units of social housing through a mix of acquisition and new production, of which no less than 200,000 units are affordable to extremely low-income and very low-income households; and requires the Department of Housing and Community Development (HCD), no later than January 1, 2025, to develop, adopt, and submit to the Legislature a Social Housing Plan for achieving the social housing unit goals set forth in the Act. The bill requires HCD to submit an annual report to the Governor and the Legislature, beginning January 1, 2026, on the state’s progress toward achieving the goals of the Act, the implementation status and outcomes of all programs and actions, and recommendations for executive and legislative action. Fiscal effects to the state are unknown. City of Huntington Beach Printed on 7/13/2023Page 6 of 9 powered by Legistar™88 File #:23-559 MEETING DATE:7/18/2023 Status: June 29, 2023 - referred to Assembly Appropriations Committee. IRC voted 3-0 to OPPOSE 9. SB 584 (Limon/Caballero) Laborforce housing: Short-Term Rental Tax Law This bill requires a 15% state short-term rental (STR) occupancy tax to be collected, as specified, and allocates the funds for the construction, acquisition and rehabilitation of affordable housing and renter protection programs, as specified. This bill creates a new program at HCD, which would finance “laborforce” housing units and provide grants to cities, counties, local housing authorities, and eligible non-profits. The City of Huntington Beach imposes a transient occupancy tax (TOT) of 10%. Both tourism and hospitality are essential economic drivers and TOT is a primary source of General Fund revenue. Imposing a 15% statewide tax, combined with the 10% local rate, would result in a total tax rate of 25% for Huntington Beach. Laborforce housing administration and funding uses: ·Authorizes public entities, local housing authorities, and nonprofit housing provides to receive funding from the Fund. ·Authorizes HCD to use any funds for administration purposes. ·Requires no less than 65% of the funds to be allocated to the creation of laborforce housing through new construction. ·Requires no more than 30% of the funds to be used for the creation of laborforce housing through the acquisition and rehabilitation of existing housing. ·Requires a maximum of 5% of the funds to be used to meet the operating needs of projects and for planning and implementation of local housing or renter protection programs, and authorizes up to 5% to be utilized for administration. Status: June 15, 2023- referred to Assembly Committees on Housing & Community Development and Revenue & Taxation. IRC voted 3-0 to OPPOSE 10. SB 50 (Bradford) Vehicles: enforcement This bill prohibits peace officers from initiating a traffic stop for specified low-level infractions unless a separate, independent basis for a stop exists, and to authorize local authorities to enforce traffic violations through the use of non-sworn government employees. Existing law provides that the right of the people to be secure in their persons, houses, papers, and effects against unreasonable seizures and searches may not be violated; and a warrant may not issue except on probable cause. SB 50 prohibits a peace officer from stopping or detaining the operator of a motor vehicle or a bicycle for a low-level infraction unless there is a separate independent basis to initiate the stop, or unless more than one low-level infraction is observed. This bill would define “low-level infraction” as any violation related to vehicle registration or vehicle equipment, the position or number of license plates, vehicle lighting not illuminating if it is a single light or single bulb, City of Huntington Beach Printed on 7/13/2023Page 7 of 9 powered by Legistar™89 File #:23-559 MEETING DATE:7/18/2023 number of license plates, vehicle lighting not illuminating if it is a single light or single bulb, bumper equipment and bicycle equipment or operation. While the bill does limit the permissible bases for a traffic stop to some degree, there are still hundreds of traffic violations for which an officer could initiate a stop, even as a pretext to investigate other potential crimes. For violations where an officer does not have grounds to stop or detain a motorist or bicyclist, and the officer can identify the owner of the vehicle, this bill would allow the officer to send a citation or fix-it ticket to the motorists home address. Status: July 11, 2023- referred to Assembly Appropriations Committee. IRC voted 3-0 to OPPOSE 11. SB 838 (Menjivar) Victim compensation: use of force by a law enforcement officer SB 838 would revise the definition of “crime” for purposes of the Victim Compensation Program (VCP) to include an incident in which an individual sustains serious bodily injury or death as the result of a law enforcement officer’s use of force. This bill would allow compensation claims for incidents in which an individual sustains serious bodily injury or death as the result of a law enforcement officer’s use of force. Status: Placed in Suspense File. IRC voted 3-0 to OPPOSE 12. Assembly Constitutional Amendment 4- Eligibility to Vote Repeals a constitutional requirement for the Legislature to provide for the disqualification of electors while serving a state or federal prison term for the conviction of a felony, subject to the approval of the voters. California law does not restrict the voting rights of people who are on probation or parole, or who are on other types of supervision as a result of a criminal proceeding (such as mandatory supervision, post-release community supervision, or federal supervised release). Until 2020, California law prohibited a person who was on parole for the conviction of a felony from registering to vote or voting. ACA 6 (McCarty), Chapter 24, Statutes of 2020, proposed an amendment to the state constitution to allow a person who is on parole for the conviction of a felony to register to vote and to vote. ACA 6 was approved by the Assembly by a 54-19 vote and appeared on the ballot at the November 2020 statewide general election as Proposition 17. According to the final official election results prepared by the Secretary of State, Proposition 17 was approved by the voters with 58.6% of ballots cast in favor of the amendment. State law does not restrict the voting rights of individuals who are in a local detention facility while doing any of the following: 1) serving a misdemeanor sentence, 2) serving jail time as a condition of probation, 3) serving a felony jail sentence, or 4) awaiting trial. A person who is in a local detention facility while serving a state prison term is not eligible to vote under existing law. As a constitutional amendment, this measure requires the approval of the voters to take effect. Status: May 18 ordered to 3rd reading in Assembly Appropriations Committee. City of Huntington Beach Printed on 7/13/2023Page 8 of 9 powered by Legistar™90 File #:23-559 MEETING DATE:7/18/2023 IRC voted 3-0 to OPPOSE Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Financial Sustainability, Public Safety or Other Attachment(s): 1. IRC Position Letters City of Huntington Beach Printed on 7/13/2023Page 9 of 9 powered by Legistar™91 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Tom Umberg Chair, Senate Judiciary Committee 1021 O Street, Room 3240 Sacramento, CA 95814 Subject: AB 223 (Ward) – Change of Gender and Sex Identifier City of Huntington Beach - OPPOSE Dear Chair Umberg, The City of Huntington Beach respectfully opposes AB 223. AB 223 will limit access to court records, creating a dangerous precedent of hiding minor’s legal dealings from concerned adults. By limiting access to documents that are already difficult to acquire, this creates a dangerous precedent and complicates the process of involving a community of adults speaking into the life of a minor. The bill makes it more difficult for concerned adults to be involved in a minor’s life. Please vote “No” on AB 223. Sincerely, Tony Strickland Mayor Cc: Senate Judiciary Committee Assemblymember Chris Ward Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft92 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Tom Umberg Chair, Senate Judiciary Committee 1021 O Street, Room 3240 Sacramento, CA 95814 Subject: AB 223 (Ward) – Family Law: Gender Identity City of Huntington Beach - OPPOSE Honorable Thomas Umberg, The City of Huntington Beach respectfully opposes AB 957. AB 957 will require California courts to consider a parent's affirmation of their child's new gender identity in custody disputes. This bill will interfere with parental vision and personal religious views. The potential denial of custody rights to a parent is cruel and hurts both the parent and the child by severing the most important relationship in that child’s life – a relationship that is essential to the health and well-being of the child. Please vote "No" on AB 957. Sincerely, Tony Strickland Mayor Cc: Senate Judiciary Committee Assemblymember Chris Ward Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft93 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Jim Wood Chair, Assembly Health Committee 1020 N Street, Room 390 Sacramento, California 95814 Subject: SB58 (Wiener) - Controlled Substances: Decriminalization of Certain Hallucinogenic Substances City of Huntington Beach – OPPOSE Dear Chair Wood, On behalf of the City of Huntington Beach, I write to you in respectful OPPOSITION to SB 58 (Wiener), which would make lawful the possession of psilocybin, psilocyn, dimethyltryptamine(DMT), ibogaine, and mescaline for personal use by people 21 years of age or older. SB58, like its predecessor SB 519 (Wiener, 2021), poses a clear and present danger to public safety. This bill would legalize the use of several addictive and dangerous, illicit drugs. These drugs pose a threat to public safety as they alter the relationship between the user and reality. While under the influence of these drugs, the ability of the user to maintain control of their mental faculties is greatly diminished, placing themselves and those around them at significant risk for physical harm. Aside from the risks posed to individuals and the public from using these dangerous drugs, this bill further erodes public safety by removing the criminal disincentive from using these drugs. By removing the criminal penalties for possessing and using these dangerous drugs, this bill increases the likelihood of their use and the likelihood that individuals will seek them out in the drug market. Individuals also face further danger from purchasing these substances, which are often adulterated with other more lethal substances. Finally, it is often the most vulnerable populations, and those who have the weakest support systems, that are most susceptible to the increased access and use of drugs. At a time when every jurisdiction should be working together to aid our most vulnerable populations, SB 58 will make it more difficult for them to escape the cycle of hallucinogenic substance use, which frequently occurs in these areas. For these reasons, the City of Huntington Beach must respectfully OPPOSE SB 58. Sincerely, Tony Strickland Mayor Cc: Assembly Health Committee Senator Scott Wiener Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft94 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Chris Holden Chair, Assembly Appropriations Committee 1021 O Street, Suite 8220 Sacramento, California 95814 Subject: SB 253 (Wiener) — Climate Corporate Data Accountability Act City of Huntington Beach - OPPOSE Dear Chair Holden, On behalf of the City of Huntington Beach, I write to you in respectful OPPOSITION to SB 253 (Wiener), which imposes added costs for business, large and small, to do business in California through additional reporting requirements. California should continue to implement and build upon existing programs and policies to regulate and monitor in-state emissions rather than seek to obtain emissions data throughout the international supply chain, especially seeing how it would have no authority to regulate emissions beyond the California border. Out-of-state or non-California companies would challenge such authority, or simply ignore it. Although SB 253 identifies a large threshold for applicability, the bill requires companies to track emissions not only for its California sites or products, but also requires emissions tracking of distant upstream and downstream supply chains. Those small and medium-sized businesses are likely under resourced and will struggle to accurately measure their GHG emissions, leaving these companies without the contracts that enable them to grow and employ more workers. This has the ability to create inefficient supply chains that will further add costs to the end-user. For these reasons, the City of Huntington Beach must respectfully OPPOSE SB 253. Sincerely, Tony Strickland Mayor Cc: Assembly Appropriations Committee Senator Scott Wiener Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft95 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Chris Holden Chair, Assembly Appropriations Committee 1021 O Street, Suite 8220 Sacramento, California 95814 Subject: SB 770 (Wiener/McGuire) - Health Care: Unified Health Care Financing City of Huntington Beach - OPPOSE Dear Chair Holden, On behalf of the City of Huntington Beach, I write to you in respectful OPPOSITION to SB 770 (Wiener/McGuire). This bill would establish a working group to advise the governor in informal conversations with the federal government about waivers to capture federal funds for a unified financing health care system. This bill takes tangible steps on a concrete timeline toward achieving universal healthcare in California. The waivers would redirect all current funding from the federal government used for Medi-Cal and Medicare to finance a government monopoly of medical, behavioral health, pharmaceutical, dental, vision, and long-term care benefits. This will implement government run medicine, which will dictate which medicines and medical treatments Californians will be allowed to have. For these reasons, the City of Huntington Beach must respectfully OPPOSE SB 770. Sincerely, Tony Strickland Mayor Cc: Assembly Appropriations Committee Senator Scott Wiener Senator Mike McGuire Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft96 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Chris Holden Chair, Assembly Appropriations Committee 1021 O Street, Suite 8220 Sacramento, California 95814 Subject: AB 1287 (Alvarez) – Density Bonus Law City of Huntington Beach - OPPOSE Dear Chair Holden, On behalf of the City of Huntington Beach, I would like to express our respectful opposition to AB 1287 – Density Bonus Law: Additional Density Bonus and Incentives or Concessions. Assembly Bill 1287 would require a city or county to grant a housing development an additional density bonus should the project provide 24% of the base density units to lower income households, 15% of the base density units to very-low income households, or 44% of the total units to moderate-income units. The City’s position on AB1287 derives from our understanding that the bill limits cities’ local policing powers over housing development processes in their own jurisdictions. As an organization, we believe cities have the ability and authority to fashion housing and development policies that best fit the needs of their communities .Every city is different, and these unique attributes should be a key consideration when developing policies that will impact local communities. In its current form, the Density Bonus Law already serves as a robust set of rules and incentives for housing developments across the State. By adding new layers of requirements to the Density Bonus Law, AB 1287 would broaden a one-size-fits-all approach to developing housing, limiting cities’ ability to address the specific housing needs of their constituents. For these reasons, the City of Huntington Beach respectfully opposes AB 1287. Sincerely, Tony Strickland Mayor Cc: Assembly Appropriations Committee Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft97 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Catherine Blakespear 1021 O Street, Suite 7340 Sacramento, California 95814 Subject: SB 7 -The Homeless Housing Obligation Act City of Huntington Beach - OPPOSE Dear Senator Blakespear, On behalf of the City of Huntington Beach, I would like to express our respectful opposition to SB 7, which requires each city and county to provide housing opportunities for homeless individuals within its jurisdiction, based on their most recent point-in-time count. Specifically, SB 7 would require local governments to plan for and provide housing for homeless individuals within its jurisdiction based on point-in-time (PIT) counts. This obligation is duplicative of existing housing element law, which already requires cities to assess the need for emergency shelter based on the most recent PIT count and assist in developing adequate housing to meet the needs of extremely low-income households. Housing element law also currently requires cities to identify sites and encourage the development of a variety of housing, including supportive housing and transitional housing. Rather than duplicate existing planning efforts, the Legislature should focus on providing funding directly to cities to realize these plans, and spur much needed development. We agree that funding is needed to support cities in addressing the state’s homelessness crisis. However, SB 7 lacks critical details about the funding source and the administration of the proposed Housing Obligation Fund. SB 7 does not clearly identify an ongoing source of funding and determination of how those dollars will be allocated. Given the potential of billions of dollars in costs to local governments to implement SB 7, cities that do not receive state funding cannot be expected to fulfill this new obligation. For these reasons, the City of Huntington Beach respectfully opposes SB 7. Sincerely, Tony Strickland Mayor Cc: Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft98 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Chris Holden Chair, Assembly Appropriations Committee 1021 O Street, Suite 8220 Sacramento, California 95814 Subject: SB 555 (Wahab) – Stable Affordable Housing Act of 2023 City of Huntington Beach - OPPOSE Dear Chair Holden, On behalf of the City of Huntington Beach, I write in respectful opposition of SB 555. If passed, it will contribute to the State’s grasp for housing and ultimately interfering with local control. SB 555 would require the state to buy thousands of existing homes contending with the private market potentially driving up prices even more. SB 555 would allow the state to buy single-family homes to convert to social housing instead of focusing solely on building new projects, making it harder for working Californians to achieve homeownership. For these reasons, the City of Huntington Beach respectfully opposes SB 555. Sincerely, Tony Strickland Mayor Cc: Assembly Appropriations Committee Senator Aisha Wahab Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft99 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Buffy Wicks Chair, Housing and Community Development Committee 1020 N Street, Room 156 Sacramento, California 95814 Subject: SB 584 (Limón) – Laborforce Housing: Short-Term Rental Tax Law City of Huntington Beach - OPPOSE Dear Chair Wicks, On behalf of the City of Huntington Beach, I write in respectful opposition of SB 584, which requires a 15% statewide short-term rental (STR) occupancy tax to be collected and used for labor force housing. SB 584 defines a “short-term rental” as the occupancy of a home, house, a room in a home or house or other lodging that is not a hotel, inn, motel, or bed and breakfast in this state for a period of 30 days or less. Our communities support equitable and affordable housing creation and balanced short- term rental laws. A 15% tax on short-term rentals is not a balanced approach. It would be devastating for short-term rental owners and managers across the State, the network of small businesses that depend on them, the State’s tourism economy at large and local communities. Short-term rentals provide additional lodging options for leisure and business travel. An additional 15% tax would ultimately harm visitors and the small businesses that rely on them while making this California lodging segment’s pricing uncompetitive with other out-of-state destinations. This tax will discourage visitors from booking these accommodations and the tourism industry and communities across our State will suffer. This bill would give the Department of Housing and Community Development (HCD) unilateral authority over the collected funds with no guarantee that the resources will be reinvested in our community. Moreover, this bill creates complex and burdensome obligations by establishing the first-ever statewide assessment on STRs. Finally, SB 584 mandates the use of project labor agreements for all construction and rehabilitation work that would take place, creating a significant hurdle to achieving the housing goals of this bill. With a potential decline in tourism on the horizon, as well as an expected decline in the jobs and services it provides, this will cause an unnecessary financial strain on the city and our community. Vacation rentals provide an important option for traveling families who may not otherwise be able to afford comparable accommodations or have differing needs for lodging draft100 Fax 714.536.5233 Page 2 of 2 Office: 714.536.5575 accommodations. By imposing this unfairly steep tax, SB 584 puts this important lodging option out of reach for many travelers, disproportionately affecting lower-income travelers and homeowners who use their home to augment their income or plan for retirement. For these reasons, the City of Huntington Beach respectfully opposes SB 584. Sincerely, Tony Strickland Mayor Cc: Senate Committee on Housing and Community Development Senator Monique Limón Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft101 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Aisha Wahab Chair, Senate Public Safety Committee 1020 N Street, Room 545 Sacramento, California 95814 Subject: SB 50 (Bradford) – Vehicles: Enforcement City of Huntington Beach - OPPOSE Dear Chair Wahab, On behalf of the City of Huntington Beach, I would like to express our respectful opposition for Senate Bill 50, which prohibits peace officers from initiating a traffic stop for specified low-level infractions unless a separate, independent basis for a stop exists, or if more than one low-level infraction is observed. SB 50 states that a violation of these provisions is not grounds for a defendant to move for return of property or to suppress evidence and authorizes local authorities to enforce traffic violations through the use of non-sworn government employees. This provision in SB 50 jeopardizes public safety, undermines the rule of law, and reduces accountability for low-level infractions. We want to keep our community safe, and the provisions in SB 50 add barriers to that goal. For these reasons, the City of Huntington Beach respectfully opposes SB 50. Sincerely, Tony Strickland Mayor Cc: Senate Committee on Public Safety Senator Steven Bradford Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft102 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Caroline Menjivar Chair, Senate Public Safety Committee 1021 O Street, Suite 6720 Sacramento, California 95814 Subject: SB 838 (Menjivar) – Victim Compensation: Use of Force by a Law Enforcement Officer City of Huntington Beach – OPPOSE Dear Senator Menjivar, On behalf of the City of Huntington Beach, I would like to express our respectful opposition for SB 838. The victim compensation program was created in 1965, the first such program in the country. The program provides compensation for victims of violent crime, and it reimburses eligible victims for many crime-related expenses, such as counseling and medical fees. Funding for the CalVCB comes from restitution fines and penalty assessments paid by criminal offenders, as well as federal matching funds. SB838 would prohibit the California Victims Compensation Board (CalVCB) from denying funds based on the victim's involvement in a crime, the victim's failure to cooperate, or the contents of a police report, or the lack thereof. CalVCB may deny funds only if the victim is convicted of a violent felony that resulted in death or serious bodily injury. The restitution fund is limited and should be reserved for victims of crime. Persons who are unlawfully injured or killed by police should be entitled to compensation. However, this bill allows persons who are lawfully injured or killed while engaging in serious and dangerous crimes to demand compensation unless they fall into one of two very limited exceptions. The Restitution Fund is the source of CalVCB reimbursements. It operated under a structural deficiency for a number of years. Although revenue has remained consistent, expenditures have outpaced revenues since FY 2015-16. By expanding the criteria for CalVCB reimbursement claims, which are paid out of the continuously appropriated Restitution Fund, this bill would appropriate moneys from the General Fund. For these reasons, the City of Huntington Beach respectfully opposes SB 838. Sincerely, Tony Strickland Mayor Cc: Senate Committee on Public Safety Senator Steven Bradford Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft103 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR Fax 714.536.5233 Office: 714.536.5553 July 19, 2023 The Honorable Isaac Bryan Assembly Majority Leader P.O. Box 942849 Sacramento, CA 94249-0055 Subject: Assembly Constitutional Amendment 4: Eligibility to Vote City of Huntington Beach - OPPOSE Dear Assemblymember Bryan, On behalf of the City of Huntington Beach, I write to you in respectful OPPOSITION to ACA 4, which would repeal a constitutional requirement for the Legislature to provide for the disqualification of electors while serving a state or federal prison term for the conviction of a felony, subject to the approval of the voters. In opposition to this measure, convicted individuals must necessarily lose many freedoms and civil rights that law-abiding citizens can enjoy like the rights of speech or expression, movement, parental privilege, even personal liberties and recreation. Until quite recently, one of the freedoms lost almost everywhere has been the right to vote. When a person voluntarily breaks the social contract and hurts someone or takes another’s property, societies worldwide have seen the logic in removing their right to participate in the activity of choosing society's governors and governing policies. Voting is a privilege and not an absolute right of citizenship. Losing the right to vote, as an incarcerated felon, is part of paying debt to society. This is not an issue of disenfranchisement because each felon is treated equally, in losing their right to vote, while incarcerated. Upon serving their sentence, felons equally can have their rights restored. For these reasons, the City of Huntington Beach respectfully opposes Assembly Constitutional Amendment 4. Sincerely, Tony Strickland Mayor Cc: Senator Dave Min Senator Janet Nguyen Assemblymember Diane Dixon Assemblymember Tri Ta draft104 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-587 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY:Catherine Jun, Deputy City Manager Subject: Consideration of the Environmental Sustainability Board’s Recommendation to Participate in the Surfrider Foundation’s Ocean Friendly Communities Pilot Program Statement of Issue: Surfrider Foundation (Surfrider) recently launched its Ocean Friendly Communities (OFC) pilot program, which recognizes cities that demonstrate a long-term commitment to being stewards of the ocean, coast, and other natural resources within their communities. Surfrider introduced the OFC to the Environmental and Sustainability Board (ESB) to gauge the City’s potential interest in serving as the inaugural member of this pilot program. On June 14, 2023, the ESB voted to recommend the OFC to the City Council for consideration. Participating in the OFC would have the City engage in a certain number of short- and long-term initiatives to help preserve and enhance the City’s natural resources, which are major contributors to Huntington Beach’s quality of life and economic strength. Ongoing participation is voluntary, and the City may dis-enroll without any penalties or obligations. Financial Impact: There is no fiscal impact at this time. Any OFC initiatives that require additional funding will be brought before the City Council for approval per the City’s purchasing policies. Recommended Action: Approve participation in the Surfrider Foundation’s Ocean Friendly Communities Pilot Program. Alternative Action(s): Do not approve the recommended action, and provide alternate direction. Analysis: Founded in 1984 in Southern California, Surfrider is a non-profit organization “dedicated to the protection and enjoyment of the world’s ocean, waves, and beaches, for all people.” Currently the Foundation maintains over 80 chapters across the nation, including the North OC chapter that encompasses Huntington Beach and neighboring cities. Chapters engage in programs, such as volunteer beach cleanups and educational campaigns to encourage the continued protection of their regions’ natural resources. City of Huntington Beach Printed on 7/13/2023Page 1 of 4 powered by Legistar™105 File #:23-587 MEETING DATE:7/18/2023 On June 14, 2023, the ESB reviewed the OFC requirements and voted to recommend participation to the City Council. If approved by the City Council, Huntington Beach would be the first City to join the pilot program, globally demonstrating a long-term commitment to being caretakers of its natural resources that benefit Huntington Beach’s environment, community members, and local economy (also known as the “triple bottom line” or “TBL”). The OFC program requirements are focused on enhancing the City of Huntington Beach’s operations to set encouraging examples for the community as well as the entire region. The OFC program does not place any mandates or requirements on the broader community of businesses, residents, or any other entity beyond the City as a municipal organization. The City can strive to achieve either the OFC’s “Platinum” status or less rigorous “Ocean Friendly Community” (OFC) status by completing a set number of goals across four categories. A menu of goals that can be accomplished under each category is summarized below; details are in Attachment 1. Following each goal in italics is an “HB Status” update of the City’s efforts related to the topic. I. OFC Core Elements: (Achieve all items for Platinum status; 3 items for OFC status) 1. Develop a Stewardship Master Plan for the benefit of the environment, people and economy. (HB Status: This Master Plan is underway and projected to be completed in Fall 2023) 2. Designate a staff member who advances city operations and the Stewardship Master Plan, and reports directly to the City Manager.(HB Status: This can be accomplished by re-scoping an existing position to take on this role in addition to position’s regular duties.) 3. A working Board or combination of Boards made up of various stakeholders from within the city that are TBL-focused.(HB Status: The current Environmental Sustainability Board or in combination with other boards can serve this role.) 4. Where applicable, invest in making sure parks, open spaces, wetlands, waterways and beaches remain open to all and protected from environmental harm.(HB Status: Current Master Plans and City’s maintenance efforts already ensure open access and protection of our natural resources.) II. HB Focused Programs: Environment (HB Status: Achieve 5 items for Platinum; 3 items for OFC) 1. Implement policy banning EPS products at City facilities, City sponsored events or any organized permitted City event.(HB Status: Achieved via Admin Regulation 703 and Reso. 2005-01.) 2. Work towards policy resulting in no plastic bottles, straws, cups, plates or utensils used at City facilities, City sponsored events or at any organized permitted City event. 3. Implement a plan for pedestrian, bike, and e-bike friendly mobility infrastructure that enhances safer paths of travel between the coast and inland portions of the community.(HB Status: City is developing a Mobility Master Plan to facilitate safer travel citywide.) 4. Work towards the incremental conversion to electric and alternative fuel vehicle fleets and the installation of more electric charging and alternative fueling stations throughout the City.(HB Status: City has conducted a study to eventually convert its fleet to EV and install additional stations.) 5. Adopt and implement a plan for water conservation and pollution prevention, including water- wise landscaping and runoff controls.(HB Status: Currently a standard City practice) City of Huntington Beach Printed on 7/13/2023Page 2 of 4 powered by Legistar™106 File #:23-587 MEETING DATE:7/18/2023 6. Implement advanced waste management and recycling programs including food diversion programs.(HB Status: This will be achieved when the City’s SB 1383 organic waste recycling program is implemented shortly.) 7. Consider opportunities for advancing zero-net energy at City facilities and operations; identify and provide on its website links to zero-net energy incentives for residents and businesses. 8. Implement opportunities, where prudent, Ocean Friendly Community features in the Stewardship Master Plan (i.e. use of drought resistant plans, LED lighting, on-site composting, etc.)(HB Status: These opportunities will be incorporated into the Master Plan.) III. HB Focused Programs: People (Achieve all items for Platinum status; 3 items for OFC) 1. Implement a communication and engagement plan for businesses and residents that: a) provides information on Ocean Friendly practices; b) facilitates the development of partnerships with various groups to guide the OFC and assist with public education and outreach; c) promotes various Ocean Friendly days such as Int’l Surfing Day, Coastal Cleanup Day etc.(HB Status: The City currently conducts similar practices and outreach and can develop an organized program to do so annually.) 2. Hold at least one annual Ocean Friendly Events for residents and businesses.(HB Status: Currently cosponsors a coastal and park cleanup annually) 3. Develop and implement a capital improvement program to install and maintain drinking water bottle refill stations in all City facilities.(HB Status: City can review the feasibility of this effort.) 4. Develop and maintain partnerships with public schools to adopt TBL-focused curriculums.(HB Status: This initiative can be vetted with the City/School District group that meets quarterly.) IV. HB Focused Programs: Economy (Achieve all items for Platinum status; 1 item for OFC) 1. Implement a program (e.g. grants, incentives, and other resources) to assist restaurants seeking designation as an Ocean Friendly Restaurant.(HB Status: This can considered as part of the upcoming Strategic Plan as an economic development priority.) 2. As part of developing an in-person and on-line One Stop Shop, City of Huntington Beach must develop and implement a specific strategy to encourage and support businesses to apply for California Green Business Networks certification or other green certification awards or honors. (HB Status: Staff can provide this info to interested residents, as part of our One Stop Shop services.) 3. Develop an economic development strategy considering the OFC program as an important element of the City’s quality of life. (HB Status: This can be incorporated into the Strategic Plan.) 4. Hold an annual summit focused on economic development and reinforce the OFC program. (HB Status: Include as part of the Mayor’s Economic Development summit and implement through the strategic plan.) The Pacific Ocean, beach, harbor, wetlands and waterways, and coastal environment are part-and-parcel with the history and heritage of Huntington Beach. Achieving either Platinum or Ocean Friendly Community Status over the next 4-5 years will reinforce the City of Huntington Beach as a municipal organization that is continually working to safeguard its important coastal setting. It will also provide an economic development tool to attract new businesses, tourism and event opportunities into the community, including such notable possibilities as serving as an LA28 Olympic Village for Surfing and other water sports. City of Huntington Beach Printed on 7/13/2023Page 3 of 4 powered by Legistar™107 File #:23-587 MEETING DATE:7/18/2023 The ESB and City staff would collaborate to identify the status and the initiatives that the City may wish to accomplish under each category. Currently, the ESB’s scope of work includes providing input on the development and implementation of the City’s Stewardship Master Plan (formerly known as the Sustainability Master Plan), which is under development. Any approved initiatives would be incorporated into the Plan, which will ultimately come before Council for final approval this Fall 2023. Initiatives requiring additional funding or staff time not previously budgeted will be presented via a budget appropriation request to City Council prior to implementation. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Infrastructure & Parks Economic Development & Housing Attachment(s): 1. Surfrider Foundation’s Ocean Friendly Community Program - Description City of Huntington Beach Printed on 7/13/2023Page 4 of 4 powered by Legistar™108 Surfrider Foundation’s Ocean Friendly Community Program Pilot Program for Huntington Beach Revised 6.9.2023 ____________________________________________________________________________ The purpose of the Surfrider Foundation’s Ocean Friendly Community (SF|OFC), like the Ocean Friendly Restaurants program (OFR), is to recognize communities and cities that demonstrate a long-term commitment to being caretakers and stewards of the ocean and coast, including beaches, wetlands, waterways, parks, open spaces, etc., through their stewardship of the triple bottom line (TBL) of environment, people, and economy. The SF|OFC Pilot Program for Huntington Beach (HB) is to present to Surf City an opportunity to be an OFC, and to recognize them for their stewardship in protecting the Pacific Ocean and its beaches, waves and estuaries. Just as HB is Surf City USA, HB can now be the Ocean Friendly Community global model and leader. At its core, SF|OFC recognizes that (HB) is performing and implementing, at the city level in all departments, policies, practices and procedures that will benefit the world’s ocean, waves and beaches. SF|OFC is based on how the City operates, and it is not dependent upon any laws or legislative acts the City mandates upon its businesses or citizens. Rather, through education and implementation, the SF|OFC program should be the model that those within the city follow as a Lead-by-Example Approach. Each of the following SF|OFC categories have outcomes and milestones for the City of Huntington Beach to attain in order to reach Platinum status over the next 4-5 years. During the course of the Pilot Program, the Surfrider Foundation and the City of Huntington Beach will evaluate the Ocean Friendly Community (SF|OFC) program and determine when, or if, the City has reached the next level of recognition, while keeping in mind this is a pilot program for both the Surfrider Foundation and the City of Huntington Beach that can be modified if deemed necessary. To reach the Ocean Friendly Community status, complete three items each in Category I, Category II and Category III, and one item in Category IV. To reach the Platinum Ocean Friendly Community status, complete all items in Categories I, III, IV and at least five items in Category II. I.SF|OFC Core Elements 1.City of HB must achieve a TBL-based Stewardship Master Plan that includes a vision/mission statement and allocates appropriate resources to advance stewardship practices for the benefit of the environment, people and economy. 2.City of HB must designate a professional with the role of Director of Stewardship, Chief Stewardship Officer, or similar officer that advances city operations and the Stewardship Master Plan, and reports directly to the City Manager/Chief Executive. 3.City of HB must have a working Board or combination of Boards made up of various stakeholders from within the city that are TBL-focused. 109 4. Where applicable, cities must invest in making sure parks, open spaces, wetlands, waterways and beaches remain open to all and protected from environmental harm within the scope of the SF|OFC program. II. SF|OFC HB-Focused Programs: Environment 1. City of Huntington Beach must implement policy, procedures and practices resulting in no EPS (expanded polystyrene or StyrofoamTM) products used at City facilities, City sponsored events or at any organized permitted City event. 2. City of Huntington Beach must work towards developing policy, procedures and practices resulting in no plastic bottles, straws, cups, plates or utensils used at City facilities, City sponsored events or at any organized permitted City event. See Surfrider’s OFR program and food ware guide for more specific details on alternatives. 3. City of Huntington Beach must implement a plan for pedestrian, bike, and e-bike friendly mobility infrastructure that includes specific capital improvement project implementation steps, which enhance safer paths of travel between the coast and inland portions of the community. 4. City of Huntington Beach must work towards the incremental conversion to electric and alternative fuel vehicle fleets and the installation of more electric charging and alternative fueling stations throughout the City. 5. City of Huntington Beach must adopt and implement a plan for water conservation and pollution prevention, including water-wise landscaping and runoff controls.[1] 6. City of Huntington Beach must demonstrate implementation of advanced waste management and recycling programs including food diversion programs. 7. City of Huntington Beach must consider opportunities for advancing zero-net energy (i.e. actual annual consumed energy is less than or equal to the on-site renewable generated energy) at City facilities and operations, as well as identify and provide on its website links to zero-net energy incentives for residents and businesses. 8. City of Huntington Beach must identify and implement opportunities, where prudent, the following Ocean Friendly Community features in the Stewardship Master Plan: a. Planting of Ocean Friendly Gardens using natural drought resistant plants. b. Use of LED lighting. c. Implementation of water conservation technologies and features to reduce pollutants and runoff. d. Use of waste minimization practices, on-site composting, and segregation of recyclables. e. Encouragement of the Leadership in Energy and Environmental Design (LEED) rating system for new projects. f. Access for all to parks, playgrounds, open spaces, beaches, and outdoor recreation. III. SF|OFC HB-Focused Programs: People 1. City of Huntington Beach must implement a communication and engagement plan for businesses and residents that: a) provides information on how people can contribute to a more Ocean Friendly Community through practices at their home or business; b) facilitates the development of partnerships with community groups and environmental organizations to guide the Ocean Friendly Community Pilot Program and assist with public education and outreach; c) recognizes and promotes various 110 Ocean Friendly days such as: International Surfing Day, California Surfing Day, World Wetlands Day, World Water Day, Earth Day, International Migratory Bird Day, World Oceans Day, Coastal Cleanup Day or other similar Ocean Friendly days. 2. City of Huntington Beach must hold at least one (with the goal of two) annual Ocean Friendly Events for residents and businesses. 3. City of Huntington Beach must develop and implement a capital improvement program to install and maintain drinking water bottle refill stations in all City facilities. 4. City of Huntington Beach must develop and maintain partnerships with public schools to adopt TBL-focused curriculums. IV. SF|OFC HB-Focused Programs: Economy 1. City of Huntington Beach must develop and implement a program (e.g. grants, incentives, and other resources) to assist restaurants seeking designation as an Ocean Friendly Restaurant.[2] Grants can be set up to address small, medium and large businesses that wish to be verified as Ocean Friendly. Grant sizes to be determined based upon the size of the restaurant and availability of funding by the City. 2. As part of developing an in-person and on-line One Stop Shop, City of Huntington Beach must develop and implement a specific strategy to encourage and support businesses to apply for California Green Business Networks certification or other green certification awards or honors. 3. City of Huntington Beach must develop an economic development strategy considering the SF|OFC program as an important element of the City’s quality of life. 4. City of Huntington Beach must hold an annual summit focused on economic development and reinforcing the SF|OFC program. [1] See Surfrider’s Ocean Friendly Gardens program for examples. https://www.surfrider.org/programs/ocean-friendly-gardens. [2] See Surfrider’s Ocean Friendly Restaurant Program. https://www.surfrider.org/programs/ocean-friendly-restaurants. 111 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-504 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Ashley Wysocki, Acting Director of Community & Library Services PREPARED BY:Ashley Wysocki, Acting Director of Community & Library Services Subject: Approve the design and installation of a chronological plaque depicting the restoration milestone efforts of community volunteers at Norma Brandel Gibbs Park as recommended by the Community & Library Service Commission. Statement of Issue: There has been a request by Leslie Gilson, volunteer Restoration Coordinator for Norma Brandel Gibbs Park, to design and install a plaque memorializing the chronology of volunteer efforts and restoration milestones of the park since 2007. Financial Impact: There are sufficient funds in Facilities & Development Account 10045401 to cover the cost of design and installation of the plaque ($1,651). Recommended Action: Approve the recommendation by the Community & Library Services Commission for the design and installation of a plaque honoring volunteer efforts of the restoration and beautification of Norma Brandel Gibbs Park on a pylon at the western entrance of the park. Alternative Action(s): Do not approve the recommended action, and direct staff accordingly. Analysis: Since 2007, Leslie Gilson and many other community members, such as the Huntington Beach Tree Society, have dedicated their time, efforts, and funding to restore the Monarch butterfly habitat at Norma Brandel Gibbs Park through a comprehensive stewardship plan. The park is fondly referred to as “Gibb’s Butterfly Park” (Park). On March 10, 2021, Ms. Gilson provided an informational presentation to the Community Services City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™112 File #:23-504 MEETING DATE:7/18/2023 Commission regarding a proposed project to restore the aging pylons at the east entrance of the Park. The restoration was to include refurbishment of the deteriorating entry pillars and the addition of artwork depicting the life cycle of butterflies by artist, Lubica Selica, who has in the past restored other butterfly artwork within the park. The project went through the design review process as item 21-003 and was approved by the Design Review Board on March 30, 2021. The restoration and beautification project funding was solely provided by volunteers with no use of City funds. In acknowledgement of these and past efforts, the City intends to install a plaque at the west entry pylons honoring the efforts of Ms. Gilson and the other volunteers. The plaque will also provide a chronology of the restoration milestones. The proposed information on the plaque, provided by Leslie Gilson, was reviewed by Kathie Schey, City Archivist and Chair of the Historic Resources Board for accuracy. Resolution 2017-25 requires that all recommendations for memorial recognition on public property be processed through the Community & Library Services Commission. At the February 8, 2023 Community & Library Services Commission meeting, the Commission approved the recommendation to City Council to approve the design and installation of the plaque. At the May 17, 2023 Historic Resources Board meeting, the Board also approved the plaque language, as reviewed and recommended by the Historic Resources Board Chair. 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: Community Engagement Attachment(s): 1. Gibbs Park Historical Plaque Rendering 2. Gibbs Park PowerPoint City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™113 A CROWNING COMMUNITY ACHIEVEMENT NORMA BRANDEL GIBBS PARK Years ago, Monarchs (Danaus plexippus) and other butterflies had abandoned this park due to a combination of dead and dying trees, urban development, pesticides and an infestation of beetles that attacked the existing old grove of eucalyptus trees. February 2007, a presentation was made by Leslie Gilson to the Huntington Beach City Council proposing preservation, protection and management of Norma Brandel Gibbs Park, fondly referred to as “Gibbs’ Butterfly Park”. A comprehensive stewardship plan was created to restore the Monarch habitat, with Leslie Gilson as Restoration Coordinator. The Huntington Beach Tree Society partnered with the City to revitalize the park. Other volunteers and sponsors were inspired to join them. RESTORATION MILESTONES May 2007: The City removed 179 compromised trees. April 2008: Arbor Day: 170 community members planted more than 700 butterfly- attracting shrubs and flowers in the park’s north bed. The first core of new trees was purchased and planted by the H.B. Tree Society. October 2009: The south bed was planted, and more trees were added to the park. October 2011: Surrounding the large mosaic, 8 life cycle medallions were installed. The butterfly art was commissioned by H.B. Tree Society and created by artist Lubica Selecka. Some years later the mosaics were conserved and enhanced. Today, these tiles enable everyone to follow the magnificent Monarch’s journey. Date TBD: This plaque was installed to express appreciation and gratitude to all who helped to turn the park into a place of serenity, where everyone can learn about and enjoy the beauty of nature.114 Norma Brandel Gibbs Park Historical Information Plaque •City Council •July 18, 2023 115 Norma Brandel Gibbs Historical Information Plaque 116 A Crowning Community Achievement Rendering 117 Norma Brandel Gibbs Plaque Recommended Action: Approve the design and installation of a plaque honoring volunteer efforts of the restoration and beautification of Norma Brandel Gibbs Park on a pylon at the western entrance of the park. 118 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-597 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Ashley Wysocki, Acting Director of Community & Library Services PREPARED BY:Carrie Gonzales, Management Aide Subject: Approve five-year License Agreement with Southern California Edison for Edison Community Park Statement of Issue: The City’s five-year license agreement with Southern California Edison (SCE) for use of 8.06 acres (located on the northwest corner of Hamilton Avenue and Magnolia Street) towards the Edison Community Park will expire on October 31, 2023. SCE has prepared a new five-year license agreement to continue this partnership with the City for an additional term. Financial Impact: The FY 2023/24 annual amount for this renewed agreement with SCE is $2,172.77. Sufficient funds are budgeted in the Park Development Fund, account number 22845001.70300. Recommended Action: Approve the License Agreement with Southern California Edison for the use of 8.06 acres of property known as Edison Community Park (Contract 9.2193), and authorize the Mayor and City Clerk to execute any and all documents necessary to complete this transaction. Alternative Action(s): Do not approve the license agreement with Southern California Edison, and direct staff accordingly. Analysis: The City of Huntington Beach first entered into a license agreement with Southern California Edison (SCE) in 1969 for the use of 8.06 acres of SCE property at the northwest corner of Hamilton Avenue and Magnolia Street. The City has historically utilized the SCE property in conjunction with the adjacent City-owned property for use as Edison Community Park. The license agreement has been renewed for successive five-year terms since the origination of the City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™119 File #:23-597 MEETING DATE:7/18/2023 agreement. The current license agreement will expire on October 31, 2023. The proposed license agreement would commence November 1, 2023 and expire October 31, 2028. In exchange for the use of the property, the City would pay an annual license fee of $2,172.77 for year one of the agreement, with annual CPI adjustments of five percent over a five-year period. Year Term Yearly Amount Payment Due First Day of Month First Year 2023 $2,172.77 November Second Year 2024 $2,281.40 November Third Year 2025 $2,395.47 November Fourth Year 2026 $2,515.25 November Fifth Year 2027 $2,641.01 November All other terms of the proposed license agreements remain virtually unchanged from previous agreements. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. License Agreement with Southern California Edison for Edison Community Park - Contract No. 9.2193. City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-606 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Theresa St. Peter, Interim Human Resources Director Subject: Appointment of Sunny Han as Chief Financial Officer and Approval of the Employment Agreement Statement of Issue: The prior Chief Financial Officer resigned from the City of Huntington Beach on January 12, 2023. Effective January 13, 2023, Sunny Han was appointed as Acting Chief Financial Officer. As such, the City Manager recommends the City Council approve the appointment of Sunny Han as Chief Financial Officer due to specific terms within her Employment Agreement that require Council approval. Financial Impact: Funding for this position is included in the FY 2023/24 budget. Recommended Action: Approve and authorize the City Manager to execute the “Employment Agreement between the City of Huntington Beach and Sunny Han” for the position of Chief Financial Officer . Alternative Action(s): Do not approve the Recommended Action, and direct staff to present an alternative solution. Analysis: Sunny Han was initially hired by the City of Huntington Beach in December 2010 as a Senior Accountant. Ms. Han received promotions during her tenure with the City and was most recently appointed Assistant Chief Financial Officer on May 20, 2020. She has served as Acting Chief Financial Officer since January 13, 2023, and has done an excellent job of leading the Finance Department and overseeing the City’s overall budget. As a result, she is recommended to permanently fill the Chief Financial Officer vacancy. City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™145 File #:23-606 MEETING DATE:7/18/2023 In accordance with City Resolution No. 2022-09 regarding Non-Associated Employees Pay and Benefits, Section A, Item 7: “The City Manager is authorized to set the salaries of executive management positions identified in Exhibit 1A at any rate at or below Step E of the designated salary range….However, no salary for a new employee may be set above Step E at any time without City Council approval.” It is recommended that Ms. Han be appointed to Step G, the top step of the salary range for Chief Financial Officer. Additionally, it is requested that a severance of nine (9) months be granted to Ms. Han should she be terminated not for cause during the first twelve (12) months of her appointment as Chief Financial Officer. Thereafter, the severance would be for six (6) months should she be terminated not for cause. Therefore, City Council approval of the “Employment Agreement between the City of Huntington Beach and Sunny Han” is requested. 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. Sunny Han - Employment Agreement City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™146 147 148 149 150 151 152 153 154 155 156 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-456 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Alvin Papa, Acting Director of Public Works PREPARED BY:Joseph Fuentes, Senior Civil Engineer Subject: Accept the lowest responsive and responsible bid, and authorize execution of a construction contract with R.J. Noble in the amount of $4,137,704.00 for the Banning Avenue Street Improvements, CC-1711. Statement of Issue: On May 25, 2023, bids were publicly opened for the Banning Avenue Street Improvements Project, CC-1711. City Council action is requested to award the construction contract to R.J. Noble, the lowest responsive and responsible bidder. Financial Impact: Total cost for the project is $4,651,473.65 with the breakdown as follows: Construction - Base Bid $3,487,004.00 Construction - Additive Alternative D (Street Lighting)$650,700.00 Contingency (10%)$413,770.40 Inspection Services $77,615.25 Geotechnical Testing $22,384.00 TOTAL PROJECT COST $4,651,473.65 Funds for this project are available in the current fiscal budget as follows: RMRA Acct.124790006.82300 $2,700,000.00 Infrastructure Funds Acct.31490018.82000 $100,000.00 AES Acct.128485001.82800 $1,700,000.00 Infrastructure Funds Acct.31490016.82300 $151,473.65 TOTAL FUNDS AVAILABLE $4,651,473.65 Recommended Action: City of Huntington Beach Printed on 7/13/2023Page 1 of 4 powered by Legistar™157 File #:23-456 MEETING DATE:7/18/2023 A) Accept the lowest responsive and responsible bid submitted by RJ Noble in the amount of $4,137,704.00 (Base Bid + Additive Alternative D); and B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): 1. Reject all bids and reevaluate project scope; or 2. Award Banning Avenue with the base bid, no roundabout, and no additional street lights, in the amount of $3,487,004.00 (Base Bid); or 3. Award Banning Avenue with the base bid, the roundabout, and additional street lights, in the amount of $5,720,372.50 (Base Bid + Additive Alternative C + Additive Alternative D) Analysis: This project will rehabilitate Banning Avenue from Magnolia Street to Brookhurst Street, providing a new asphalt overlay that includes 2-inches of rubberized asphalt concrete (RAC), slurry seal installation, utility cover replacement, new landscaped medians, and new traffic striping and signage. Improvements also include limited replacement of concrete curb, gutter, sidewalk, driveway approaches, access ramps, and trees. The Banning Avenue street segments have existing Pavement Condition Indexes (PCI’s) between 37 (Very Poor) to 75 (Good) and warrant rehabilitation now to avoid continued deterioration that will require considerably higher reconstruction costs in the future. This project overlay uses RAC, a sustainable paving material made with crumb rubber from 100% California waste tires. A 2-inch layer of RAC includes over 2,000 waste tires per lane mile. In total, this project will divert approximately 20,000 waste tires that would otherwise end up in a landfill.As a result, reimbursement from the CalRecycle RAC grant in the amount of $10,000 is anticipated upon project completion. Due to rapidly rising construction costs and potential budget constraints, this project was bid with three additive alternates to allow contract award flexibility. Bids were publicly opened on May 25, 2023 with two bids received: BIDDER’S NAME BID AMOUNT R.J. Noble $ 5,872,074.00 All American Asphalt $ 6,822,916.00 R.J. Nobles bid breakdown was as follows: (A) Base Bid $3,487,004.00 (B) Additive Alt. - Banning and Bushard Intersection Improvements $151,701.50 (C) Additive Alt. - Banning and Bushard Roundabout Installation $1,582,668.50 (D) Additive Alt. - Banning Street Lighting Improvements $650,700.00 BASIS OF AWARD (A + B + C + D)$5,872,074.00 City of Huntington Beach Printed on 7/13/2023Page 2 of 4 powered by Legistar™158 File #:23-456 MEETING DATE:7/18/2023 Additive Alternate B This scope includes improvements at the intersection of Banning and Bushard. Staff recommends this alternative only if the roundabout (Additive Alternate C), which are the preferred solution from southeast area residents - are not implemented under this project or future projects. The scope includes construction of curb ramps, slurry seal, and striping. Additive Alternate C The roundabout installation at Banning and Bushard is a traffic calming measure that was proposed to replace the existing 4-way stop in response to a survey where residents voiced their concerns about vehicles performing donuts in the intersection and speeding. The roundabout is anticipated to add beautification features and provide a traffic calming measure to the street corridor. Additive Alternate D At the request of the southeast area residents, additional streetlights are recommended to be installed to improve the existing streetlight illumination along Banning for improved safety and visibility at night. Recommendation Based on the project funding available, staff recommends awarding a contract to R.J. Noble in the amount of $4,137,704 for Base Bid plus Additive Alternative D (lighting improvements) only. R.J. Noble has successfully completed similar arterial construction projects in the City. The total estimated project cost is $4,651,473.65, which includes construction, contingency and supplemental services (e.g. inspection and construction geotechnical testing). Although Additive Alternative C (roundabouts) would enhance the street corridor, staff recommends deferring them to allow time to seek outside funding opportunities to partially fund these improvements. Staff plans to apply for OC Complete Streets Grant funding for the roundabout, which is intended to support local-agency projects in Orange County that support complete streets and have a transportation nexus. The roundabout project meets the application criteria for safety, access, and community engagement. If awarded, the grant will supplement approximately 88 percent of the project costs with the City providing the remaining 12 percent. The application deadline is September 15, 2023. If the grant is not procured, the roundabout will be reissued for a construction bid in Summer 2025 with staff proposing to fund the work with unallocated AES funds and current Mobility Infrastructure Funds. For the recommended scope of work (Base Bid plus Additive Alternative D), the Fiscal Year 2023/24 Capital Improvement Budget includes the use of $2,560,000 of AES funds for Complete Streets Improvements, of which $1 million was originally planned for Banning Avenue to address the rehabilitation and lighting concerns. After evaluating the various options, staff will now need to use $1,700,000 of the $2,560,000 of AES funds for Complete Streets to fully fund this project. Remaining funds are currently budgeted in the FY23/24 Capital Improvement Budget. Staff will return to the community for feedback to reevaluate and prioritize the other planned projects (bike lane enhancements on Newland, Magnolia, and Bushard, 4 radar feedback signs, and landscaped medians on Magnolia and Hamilton) to fit within the remaining AES Complete Streets City of Huntington Beach Printed on 7/13/2023Page 3 of 4 powered by Legistar™159 File #:23-456 MEETING DATE:7/18/2023 Improvements project budget. Public Works Commission Action: The Public Works Commission reviewed the project and on April 19, 2023 approved the project with a vote of (7 Yes - 0 No). Environmental Status: The project is categorically exempt pursuant to Class 1, section 15031c of the California Environmental Quality Act. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Vicinity Map 2. Power Point Presentation City of Huntington Beach Printed on 7/13/2023Page 4 of 4 powered by Legistar™160 161 Banning Avenue Improvement Project 2022/23 7/18/2023 Council Meeting 162 PURPOSE AND NEED • Banning Avenue (Magnolia to Brookhurst) includes street segments in poor pavement condition. These segments will be completed as part of the arterial street rehabilitation program. • Existing trees have impacted drainage and sidewalk and will be replaced with Eastern Redbud trees and hardscape improvements • Residents concerned about high speed vehicle traffic. Four landscape medians and roundabout to provide traffic calming 163 • New asphalt overlay for poor pavement sections and a slurry install to existing pavement for better sections, both extending life of the street • Replace damaged and uneven concrete • Beautification enhancement with tree replacement and addition of four landscape medians • Striping and signage improvements including school crosswalk enhancement and improved bike lane mobility • Traffic calming measures with striping and landscaped median additions along Banning SCOPE OF WORK 164 RENDERINGS OF ROUNDABOUT 165 COMMUNITY ENGAGMENT TWO COMMUNITY MEETINGS WERE PROVIDED AT THE EDISON COMMUNITY CENTER: • TUESDAY, DECEMBER 13, 2022 • TUESDAY, JANUARY 10, 2023 166 BID ALTERNATIVES Due to rapidly rising construction costs and potential budget constraints, this project was bid with three additive alternates to allow contract award flexibility. Additive Alternate B This scope includes completing improvements located at the intersection of Banning and Bushard if no roundabout is selected. The scope includes construction of curb ramps, slurry seal, and striping. Additive Alternate C The roundabout installation at Banning and Bushard is a traffic calming measure that was proposed to replace the existing 4-way stop in response to a survey where residents voiced their concerns about vehicles performing donuts in the intersection and speeding. Due to bidding market, staff will re-bid roundabout for construction in Summer 2024 if we get decision early from OCTA/FEDS otherwise the latest is Summer 2025. Additive Alternate D Staff revisited the existing streetlight illumination to see if there are locations that may improve night visibility on the Banning sidewalk corridors. There is no law or regulation prompting the additional lighting, but proposed improvements to improve lighting. 167 BIDS AND BASIS OF AWARD Bids were publicly opened on May 25, 2023, with two bids received: R.J. Nobles bid breakdown was as follows: BIDDER'S NAME BID AMOUNT R.J. Noble $5,872,074.00 All American Asphalt $6,822,916.00 (A) Base Bid $ 3,487,004.00 (B) Additive Alt. - Banning and Bushard Intersection Improvements $ 151,701.50 (C) Additive Alt. - Banning and Bushard Roundabout Installation $ 1,582,668.50 (D) Additive Alt. - Banning Street Lighting Improvements $ 650,700.00 BASIS OF AWARD (A + B + C + D)$ 5,872,074.00 168 FUNDING Total cost for the project is $4,651,473.65 with the breakdown as follows: Funds for this project are available in the current fiscal budget as follows: RMRA Acct. 124790006.8 $ 2,700,000.00 Infrastructure Mobility Acct. 31490018.82 $ 100,000.00 AES Acct. 128485001.8 $ 1,700,000.00 Arterial Beautification Acct. 31490016.82 $ 151,473.65 TOTAL FUNDS AVAILABLE $ 4,651,473.65 Construction - Base Bid: (paving, sidewalks, ramps, medians, crosswalks) Defer the Roundabout $ 3,487,004.00 Construction - Additive Alternative D (Additional Street Lighting) $ 650,700.00 Contingency (10%)$ 413,770.40 Inspection Services $ 77,615.25 Geotechnical Testing $ 22,384.00 TOTAL PROJECT COST $ 4,651,473.65 169 CIP AES FUNDING SUMMARY 9 ProjectName ProjectDescription Includedin FY 2023/24 ProposedBudget AESCompleteStreets Improvements (updated 7-18-23) •Banning landscape medians, bike lanes, sidewalk ($1.7M) •4 radar feedback signs (Locations TBD) •Potential enhancement to existing bike Lanes on Newland Magnolia,andBushard •Potential landscaped medians onMagnolia and Hamilton (Locations TBD) 2,560,000 Less Banning -$1.7M $860,000 for remaining AESSeelyParkPlayground Improvements New playground equipment 350,000 AES EaderParkImprovements Resurface pavement at Eader Park parking lot 100,000 AES BanningBranchLibrary Master Plan Year 1 of amulti-year project toevaluate, with community input,options for a new 12,000sq.ft.branchlibrary, smallpark and parking on the existing site. 335,000 AES EdisonParkReconfiguration The project includes the reconfiguration of Edison Park to include relocation of tot lots, walkways,dualusetennisand pickleball courts,other recreation amenities, as wellas parking &hardscapeimprovementsto mitigate settlement issues. 1,200,000 Contingency Funds 355,000 TOTAL 4,900,000 170 GRANT APPLICATION FOR DEFERRED ROUNDABOUT •Competitive OC Complete Streets Grant funding is available if projects support complete streets and have a transportation nexus. Staff plans to apply for grants to seek supplemental funding for the roundabout project. •If the grant cannot be secured, rebid the roundabout with plans to construct by Summer 2025 171 Questions? 172 OPTIONS ITEM DESCRIPTION AMOUNT Base Bid A Banning Ave Rehabilitation (Magnolia to Brookhurst) 3,487,004.00$ Construction Contingency (10%)348,700.40$ Inspection Services 77,615.25$ Geotechnical Testing 22,384.00$ TOTAL PROJECT COST 3,935,703.65$ Funding Option 2: Carryover FY22-23 Mobility CIP Funds ITEM DESCRIPTION AMOUNT Road Maintenance and Rehabiliation Account (RMRA)2,700,000.00$ Citywide Mobility & Corridor Imps 100,000.00$ AES Complete Streets Fund 1,000,000.00$ Arterial Beautification 135,703.65$ TOTAL FUNDS AVAILABLE 3,935,703.65$ Impacts of Funding Option 2: Base Bid (paving, sidewalks, ramps, medians, crosswalks), Defer the Roundabout, No Additional Lighting Future paving projects would be reprogrammed for next year (RMRA funds) Defer roundabout and apply for grant, re-bid roundabout for construction before Summer 2025, re-bid Summer 2026 if federal grant is awarded ITEM DESCRIPTION AMOUNT Base Bid A Banning Ave Rehabilitation (Magnolia to Brookhurst) 3,487,004.00$ Add. Alt. B Banning and Bushard Intersection Imp. (no roundabout) Add. Alt. C Banning and Bushard Roundabout 1,582,668.50$ Add. Alt. D Banning Street Lighting Improvements 650,700.00$ Construction Contingency (10%)572,037.25$ Inspection Services 77,615.25$ Geotechnical Testing 22,384.00$ TOTAL PROJECT COST 6,392,409.00$ Funding Option 2: Use all available funding sources ITEM DESCRIPTION AMOUNT Road Maintenance and Rehabiliation Account (RMRA)2,700,000.00$ Citywide Mobility & Corridor Imps 859,280.65$ AES Complete Streets Fund 2,333,128.35$ Arterial Beautification 500,000.00$ TOTAL FUNDS AVAILABLE 6,392,409.00$ Impacts of Funding NO AES complete streets projects have been designed. Option 3: Base Bid (paving medians, sidewalk, crosswalks), Roundabout, With Additional Lighting Future paving projects would be reprogrammed for next year (RMRA funds) Almost all AES complete streets category funds are depleted. Re-evaluate & seek other funds for radar feedback signs, bike lanes, and landscape medians 173 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-496 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Alvin Papa, Acting Director of Public Works PREPARED BY:Debra Jubinsky, Senior Management Analyst Subject: Approve and authorize the execution of Amendment No. 1 to the Professional Services Contract between City of Huntington Beach and HF&H Consultants, LLC for negotiation services for SB 1383 compliance to increase the contract amount by $40,000 for a total not to exceed $115,000 Statement of Issue: The City has an existing professional services contract with HF&H Consultants, LLC to provide negotiation services for SB 1383 compliance. The timeline for this process has exceeded the initial estimate, and additional services are required to complete the process. Staff is requesting approval of an amendment to the contract to increase the original $75,000 not to exceed limit by $40,000 for a total not to exceed contract of $115,000. Financial Impact: Funds in the amount of $40,000 are available in the Refuse Professional Services account no 50485103.69365. Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Professional Services Contract Between City of Huntington Beach and HF&H Consultants, LLC for Negotiation Services for SB 1383 Compliance.” Alternative Action(s): Do not approve this Amendment, and direct staff on how to proceed. Analysis: On October 6, 2021 the City entered into a professional services contract with HF&H Consultants, LLC in the amount of $75,000 to review our existing Solid Waste Franchise Agreement and negotiate SB 1383 compliance with the City’s solid waste hauler, Republic Services. This process has City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™174 File #:23-496 MEETING DATE:7/18/2023 extended beyond what was contemplated in the original service proposal, which is due in part to the bottleneck created by multiple jurisdictions negotiating for SB 1383 compliance at the same time with the same haulers. HF&H Consultants, LLC were selected for this project, because of their expertise and experience with solid waste contracts, their experience with SB 1383 compliance, and their familiarity working with Republic Services on behalf of other cities. HF&H developed four SB 1383 Model Implementation Tools for CalRecycle that are used by jurisdictions statewide. In addition to Huntington Beach, their clients include the County of Orange and 10 cities in Orange County, including 8 that also contract with Republic Services. It is necessary to continue their services to successfully complete the Franchise Agreement updates for SB 1383 compliance. Based on an estimate from HF&H, staff is proposing to increase the contract by $40,000 which includes $35,000 in additional services plus a small contingency of $5,000 for unforeseen issues. This Amendment increases the total not to exceed contract limit from $75,000 to $115,000. City Council approval is required for Professional Services contracts of $100,000 or greater. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Amendment No. 1 to Professional Services Contract Between City of Huntington Beach and HF&H Consultants, LLC for Negotiation Services for SB 1383 Compliance 2. Professional Services Contract Between the City of Huntington Beach and HF&H Consultants, LLC for Negotiation Services for SB1383 Compliance 3. PowerPoint Presentation City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 Item 23-496 Amend Professional Services Contract with HF&H Consultants, LLC July 18, 2023 213 Background • On Oct. 6, 2021, City entered into Professional Services Contract with HF&H Consultants, LLC to review Solid Waste Franchise Agreement and negotiate SB 1383 compliance with Republic Services • HF&H specializes in solid waste agreements and in SB 1383 compliance 214 Background • These negotiations are taking longer than anticipated in the original proposal • Cost of services to conclude this process will exceed the current contract not to exceed limit of $75,000 • Amendment No. 1 will increase the contract not to exceed limit from $75,000 to $115,000, an additional $40,000 215 Recommendation • City Council approval is required for Professional Services Contracts of $100,000 or greater • Staff is recommending approval of Amendment No. 1 to Professional Services Contract Between City of Huntington Beach and HF&H Consultants, LLC for Negotiation Services for SB 1383 Compliance 216 Questions? 217 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-506 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Alvin Papa, Acting Director of Public Works PREPARED BY:Sarah Whitecotton, Management Aide Subject: Adopt Resolution No. 2023-30 authorizing the application for grant funds from the State Department of Parks and Recreation through the Habitat Conservation Fund Program Statement of Issue: Staff requests authorization to apply for grant funds under the Habitat Conservation Fund (HCF) Program to restore and realign portions of the existing trail at the Shipley Nature Center. Financial Impact: The total estimated project cost, including design and construction, is $766,618. Staff is requesting $383,309 in grant funds from the State Department of Parks and Recreation to restore a trail at the Shipley Nature Center. If awarded a grant, the City will be responsible for providing 50% matching funds totaling $383,309, which staff will request through a separate budget appropriation request at a future City Council meeting. Recommended Action: Adopt Resolution 2023-30, “A Resolution of the City Council of the City of Huntington Beach Approving the Application for Grant Funds from the Habitat Conservation Fund Program.” Alternative Action(s): Do not adopt the resolution and direct staff accordingly. Analysis: The people of the State of California enacted the California Wildlife Protection Act of 1990, which provides funds to the State of California for grants to local agencies to acquire, enhance, restore and/or develop facilities for public recreation and fish and wildlife habitat protection purposes. The HCF allocates approximately $2 million each year to cities, counties, and districts. Eligible projects include nature interpretation programs to bring urban residents into park and wildlife areas, protection of various plant and animal species, and acquisition and development of wildlife corridors and trails. City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™218 File #:23-506 MEETING DATE:7/18/2023 This year, the HCF has approximately $6.68 million available to award. The program requires all grant award recipients to provide a 50% project cost match. The City is collaborating with Friends of the Shipley Nature Center to submit a grant application to restore the walking/hiking trail at the nature center. The collaboration includes cost sharing to hire a professional grant writer for $9,000 each party or $18,000 total. The Shipley Nature Center Trail Project would be classified as a non-motorized project under the development and rehabilitation of trails, trailside and trailhead facilities category. The project involves the realignment of portions of the existing trail (approximately 850 feet) that is flooded due to high water levels in the adjacent lake. The project will remove invasive plants, clear and grub approximately 0.7 acre of terrain, compact the base material, import approximately 1,800 cubic yards of fill material to elevate the trail, add a trail surface to match existing trail, install trail edge headers, and install trail markers and other signage. The total project cost is $766,618. Staff has prepared a grant application for 50% of the project cost ($383,309). To complete the application, staff is requesting adoption of Resolution 2023-30, “A Resolution of the City Council of the City of Huntington Beach Approving the Application for Grant Funds from the Habitat Conservation Fund Program” (see Attachment 1). If approved, staff will submit the completed grant package to the State Department of Parks and Recreation, which plans to announce recommended projects in Winter 2023, with mandatory workshops and grant agreements to be completed in early 2024. If awarded, the grant performance period is 5 years from July 1, 2024 through June 30, 2029. Furthermore, in order to accept the grant funds, the City must commit to matching 50% of the project cost. If awarded, staff will return to City Council at a future date to request sufficient budget appropriation. Environmental Status: CEQA analysis will be performed in the future if the grant is awarded. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Resolution 2023-30, “A Resolution of the City Council of the City of Huntington Beach Approving the Application for Grant Funds from the Habitat Conservation Fund Program” 2. Project Exhibit 3. PowerPoint Presentation City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™219 220 221 222 GOLDENWEST STREET100 FTSLATER CHANNEL42135678910111213141516DEMONSTRATIONGARDENSOBSERVATIONDECKAMPHITHEATERBLACKBIRDPONDSLATER LOOPMEADOW LOOPEDUCATIONCOURT YARDRESTROOMSCONSERVATIONAREACOMPOSTING &VERMICULTURENATIVE PLANTNURSERYINTERPRETIVECENTERFlood Stage ofBlackbird PondENTRANCE*Flood Stage ofBlackbird PondPOINT OFACCESS GATEPOINT OFACCESS GATE**PIPE OUTLETSHIPLEY NATURE TRAILFEBRUARY 2022FLOOD STAGEof Blackbird PondPROPOSEDALTERNATETRAIL ALIGNMENTEXIST. TRAILALIGNMENTUNDER WATEREXIST. DRY STREAMSTORM DRAIN SWALEFeetGRAPHIC SCALE200100050LEGEND:OPEN TRAILCLOSED TRAIL (Underwater/ Blocked)PROPOSED TRAIL REALIGNMENTTRAIL MARKERS1PROPOSED TRAIL SECTION223 Shipley Nature Center Grant Resolution Adopt Resolution 2023-30 July 18, 2023 224 Grant Resolution Adopt Resolution No. 2023-30 authorizing the application for grant funds from the State Department of Parks and Recreation through the Habitat Conservation Fund Program. The grant will be used to fund a project to realign portions of the trail at the Shipley Nature Center that floods due to high water levels in the adjacent lake. 225 Exhibit 226 Questions? 227 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-577 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Alvin Papa, Acting Director of Public Works PREPARED BY:John Dettle, Associate Civil Engineer Subject: Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Premo Construction in the amount of $364,095 for the Well 9 Roof Replacement Project, CC1687. Statement of Issue: On June 22, 2023, bids were publicly opened for the Well 9 Roof Replacement Project, CC1687. City Council action is requested to award the construction contract to Premo Construction, Inc., the lowest responsive and responsible bidder. Financial Impact: The total cost of the project, including contingency and inspection is $425,505. Funds in the amount of $328,205 are available in Water Fund account 50691043.82100. Staff is requesting an appropriation of $97,300 from the undesignated Water Fund balance to fund the remainder . Recommended Action: A) Accept the lowest responsive and responsible bid submitted by Premo Construction, Inc. in the amount of $364,095; B) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; and C) Appropriate $97,300 from the Water Fund to account 50691043.82100 . Alternative Action(s): Reject all bids, and direct staff to rebid the project. Analysis: Water Production Staff identified that the Well 9 facility was vulnerable to fire risk, due to excessive heat buildup in the exhaust system caused by insufficient ventilation; the ventilation system automatically shuts off when the facility doors are not fully closed. Staff immediately implemented aCity of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™228 File #:23-577 MEETING DATE:7/18/2023 automatically shuts off when the facility doors are not fully closed. Staff immediately implemented a standard procedure to keep the engine room door closed at all times. However, in the absence of a permanent structural solution, the Well 9 facility would remain at risk of fire and a lengthy shutdown as repairs are made. A well shutdown increases cost to the City, because it forces the City to pay for imported water to meet the City’s domestic water demands. Groundwater production via pumping of well water saves the City approximately $200,000 a month versus imported water costs. As such, in Fiscal Year 2022/23, Public Works Engineering began the design to modify the Well 9 roof and ventilation system. This project will replace the wood roof at Well 9 with a concrete and steel decking roof, add wall openings and louvers in the engine room for ventilation, and add a roof mounted ventilation fan to pull air across the engine and exhaust system through the roof. Additional chain link gates will be constructed to prevent access to the area behind the Well 9 engine room. The Engineer’s Estimate presented at the Public Works Commission in April 2023 was $384,000 and included a 10% contingency, 20% inflation factor, and $25,000 for special inspections. The additional appropriation requested is due to the inflation of construction bids over the past Fiscal Year. Bids were publicly opened on June 22, 2023, and only one bid proposal was received. There was a mandatory pre-bid meeting, and two firms attended. Premo Construction, Inc. was one of the two firms that complied with this requirement. Staff has checked the references for Premo Construction , Inc. and found them to satisfactory. The work experience listed was similar to Well 9. Premo Construction, Inc.’s bid was approximately $20,000 under the Engineer’s Estimate. Staff recommends awarding a contract to Premo Construction, Inc. in the amount of $364,095. The estimated construction cost is $425,505, which includes the construction contract amount, a 10% contingency, and supplemental expenses for special inspections. Environmental Status: The project is categorically exempt pursuant to Class 1, section 15031c of the California Environmental Quality Act. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. PowerPoint Presentation 2. Location Map City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™229 Well 9 Roof Replacement Project July 18, 2023 230 BACKGROUND AND PROJECT SCOPE The Well 10 timber roof caught fire in 2009 due to excessive heat build up in the exhaust system due to a lack of ventilation and air flow across the engine and exhaust system. The Engine Room roof at the Well 9 Facility is similar construction to Well 10. The project will replace the Well 9 timber roof with a concrete and metal decking roof and add ventilation to the Engine and Muffler Rooms with a new roof mounted exhaust fan to pull air across the engine and exhaust system and vent hot air out the roof. 231 232 PROJECT BENEFITS • Prevent roof fire at Well 9 from wood frame roof, reducing fire risk to adjacent homes and businesses • Prevent loss of local water production from loss of Well 9: approximately $200,000 loss per month • Provide an environmentally controlled and more secure work area for Water Operations crews 233 STAFF REPORT • Construction Bids Received June 22, 2023 • Current Budget: $328,205 (Water Enterprise Fund) • Request Award to Lowest Bidder – Premo Construction, Inc. • Total Low Bid = $364,095 • Total Project Cost including Inspection = $425,605 • Recommended Action: Accept the lowest responsive bid and authorize execution of construction contract with Premo Construction Inc. and appropriate $97,300. • Alternative Recommendation: Reject All Bids • Construction Start: September 2023 • Construction Duration: 8-12 weeks 234 Questions? 235 WELL 9 VICINITY MAP 236 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-582 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Alvin Papa, Acting Director of Public Works PREPARED BY:John Martin, Capital Projects Administrator Subject: Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Fleming Environmental Inc. in the amount of $1,093,371.00 for the Civic Center Underground Storage Tank (UST) Replacement Project, CC-1651. Statement of Issue: On June 14, 2023 bids were opened for the Civic Center Underground Storage Tank (UST) Replacement Project, CC-1651. City Council action is requested to accept the lowest responsive and responsible bid submitted by Fleming Environmental Inc. in the amount of $1,093,371.00 and authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Financial Impact: The total cost of the project, including contingency, is $1,225,209.00. Funds for this project are available in the current fiscal year budget in the Infrastructure Fund account 31440006.82200. Recommended Action: A) Accept the lowest responsive and responsible bid submitted by Fleming Environmental Inc. in the amount of $1,093,371.00. B)Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Alternative Action(s): 1. Abandon tank in place and use alternate fueling facilities. 2. Delay the project and use alternate fueling facilities until ready to execute. Analysis: The existing Civic Center Underground Storage Tank (UST) and fueling station is located in the City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™237 File #:23-582 MEETING DATE:7/18/2023 parking lot just west of the central Police Department (PD) Station and primarily serves the Police Department Fleet. The existing single-wall, 12,000 gallon steel gasoline tank needs to be replaced with a double-wall design prior to 2025 in order to comply with California SB-445 which requires owners and operators of single-walled USTs to permanently close their single-wall tanks by December 31, 2025. The new UST will be a double-wall design and include a modern leak detection system, new fuel dispensers, an upgraded fuel monitoring system, and a new fueling island and canopy. The UST and fueling island will be relocated approximately 350 feet to the south end of the lot, which will allow for less interference with PD operations and more efficient tank refueling. The City is able to purchase fuel for fleet vehicles at a wholesale rate, saving approximately $1/gallon on average. Maintaining and updating the City USTs and fueling stations is critical to sustaining current City operational budgets. The engineer’s estimate for this project was $904,500.00. Bids for the Civic Center UST Replacement Project were opened on June 14, 2023, and are listed in ascending order below. Bidder Submitted Bid 1 Fleming Environmental Inc.$1,093,371.00 2 GEMS Environmental Management Services, Inc.$1,176,332.68 3 Western Pump, Inc.$1,274,633.53 4 MJK Construction, Inc.$1,539,529.00 City staff has conducted a reference check on Fleming Environmental Inc. and has received satisfactory reviews of their past performance on similar scale UST and fueling station maintenance and construction projects. Therefore, staff recommends awarding a construction contract to Fleming Environmental Inc. in the amount of $1,093,371.00. The total project cost is $1,225,209.00, which includes the construction contract, contingency, and supplemental costs for inspection and permit fees. Environmental Status: This project is categorically exempt pursuant to the California Environmental Quality Act, Section 15303.c. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Vicinity / Location Map 2. Project Overview Presentation City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™238 239 Civic Center Underground Storage Tank (UST) Replacement Project Overview July 18, 2023 240 BACKGROUND • Existing tank – 12,000 gallon, gasoline single wall steel underground storage tank (UST) • Fueling island is original to the Civic Center (1975), though some upgrades have occurred (dispensers, underground containment sumps) • Station mainly serves PD fleet • Existing UST is located under parking stalls EXISTING FUELING ISLAND EXISTING UST 241 NEED/WHY/BENEFITS • California SB-445 requires that all USTs be double wall by 2025 • Maintaining City-owned fueling stations allows for ~$1/gallon fuel discount • New FRP tank has brine-filled interstice and pressure sensor for leak detection system • Replace old/outdated dispensers and fuel island/ canopy • Upgrading Veeder-Root fuel management system • Relocate UST out of way of parking stalls, away from PD operations 242 DETAILS 243 STAKEHOLDER OUTREACH • The project team does not expect the construction phase to impact the public. • The project team worked closely with City Fleet, Police Department, Fire Marshall, AQMD, Orange County Health Care Agency (OCHCA), and the Department of Toxic Substances Control (DTSC) stakeholders to develop the work plan for this project. 244 FUNDING/SCHEDULE • The total cost of the project, including contingency, is $1,225,209.00. Funds for this project are available in the current fiscal year budget in the infrastructure fund account 31440005.82200. • The project is scheduled to start October 2, 2023 and is anticipated to run ~5 months. 245 Questions? 246 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-585 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Ursula Luna-Reynosa, Director of Community Development PREPARED BY:Hayden Beckman, Senior Planner Subject: Appeal of the Planning Commission’s action that upheld the Zoning Administrator’s approval of Conditional Use Permit No. 23-006 (Huntington Beach Community Church Wireless Communication Facility) Statement of Issue: Transmitted for your consideration is Christina Price’s appeal of the Planning Commission’s action that upheld the Zoning Administrator’s approval of Conditional Use Permit No. 23-006. This application is a request to construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property occupied by a church. The installation would include a four sector array of four panel antennas each that utilizes stealth design by disguising the new wireless facility within the branches of a faux broadleaf tree. The Planning Commission held a public hearing on June 13, 2023, to consider an appeal of the Zoning Administrator’s decision to approve the project. The hearing resulted in a 3-3 vote and upheld the Zoning Administrator’s approval. On June 23, 2023, Christina Price appealed the Planning Commissions’ action citing multiple reasons outlined in the appeal letter (Attachment No. 2) and analyzed below. Financial Impact: Not Applicable. Recommended Action: A) Find the proposed project exempt from the California Environmental Quality Act pursuant to Section 15303 of the CEQA Guidelines; and B) Approve Conditional Use Permit No. 23-006 with findings and conditions of approval (Attachment No. 1) Alternative Action(s): City of Huntington Beach Printed on 7/13/2023Page 1 of 7 powered by Legistar™247 File #:23-585 MEETING DATE:7/18/2023 A) Do not make the suggested findings for Conditional Use Permit No. 23-006, which will result in a mandatory denial pursuant to Section 241.10(C) of the Huntington Beach Zoning and Subdivision Ordinance. B) Continue Conditional Use Permit No. 23-006 and direct staff accordingly. Analysis: A.PROJECT PROPOSAL: Applicant: John Silverman, Smartlink Group, 1227 West Raymar Street, Santa Ana CA 92703 Property Owner: Huntington Beach Community Church, 8101 Slater Avenue, Huntington Beach CA 92647 Location: 8101 Slater Avenue, 92647 (North side of Slater Avenue, west of Marken Lane) The project site is a 0.88-acre commercial property, currently developed as the Huntington Beach Community Church. The subject request is to construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft., including the installation of an ancillary equipment enclosure located in the northwest corner of the property. The proposed maximum overall height of the antennas is 55 ft.,and the freestanding tower is designed utilizing stealth techniques to camouflage the tower, antennas, and equipment by resembling a broadleaf tree. A comprehensive description of the proposed project as well as the General Plan and Zoning analysis can be found in the June 13, 2023 Planning Commission staff report (Attachment No. 4). B. PLANNING COMMISSION MEETING AND RECOMMENDATION The subject Conditional Use Permit was originally approved at the April 19, 2023 Zoning Administrator public hearing. The Zoning Administrator’s approval was appealed by Christina Price, and the project was subsequently heard in a de novo public hearing before the Planning Commission on June 13, 2023. During public comments, nearby residents, including adjacent residential property owners, spoke in opposition to the project citing health and property value concerns. Additionally, Ariel Strauss, counsel for the appellant, also provided comments outlining issues related to wireless facility co-location feasibility, perceived deficiencies in the project application, compliance with Federal requirements, including the National Environmental Protection Act (NEPA), potential for noise impacts to adjacent properties, potential impacts to migratory birds, and the California Environmental Quality Act (CEQA) exemption determination. Following public comments, discussion between the Commissioners, staff, the applicant, and the appellant included the quality and scale of the submitted photographic simulations provided by the applicant, requesting that the applicant consider alternative simulations to improve public awareness of visual impacts, 4G vs. 5G frequencies, the identified outputs of the proposed facility, safety signage requirements for wireless communication facilities, and if any complaints received by the City City of Huntington Beach Printed on 7/13/2023Page 2 of 7 powered by Legistar™248 File #:23-585 MEETING DATE:7/18/2023 regarding currently operating wireless facilities. Planning Commission Action on June 13, 2023 A motion was made by Commissioner Rodriguez, seconded by Commissioner Adam, to approve Conditional Use Permit No. 23-006 with findings and conditions of approval. Subsequently, a substitute motion was made by Chair Pellman, seconded by Vice-Chair Twining, to deny Conditional Use Permit No. 23-006. AYES: Pellman, Twining, Kennedy NOES: Adam, Rodriguez, Acosta-Galvan ABSTAIN: None ABSENT: Wood SUBSTITUTE MOTION TO CONTINUE FAILED AYES: Adam, Rodriguez, Acosta-Galvan NOES: Pellman, Twining, Kennedy ABSTAIN: ABSENT: Wood MOTION TO APPROVE FAILED As a result of a 3-3 split vote, the Planning Commission failed to reach a majority vote on both the motion to deny and the motion to approve CUP No. 23-006. Pursuant to Roberts Rules of Order, in the event of a tie, the motion fails. Because there essentially is no action taken, the lower discretionary body’s decision is upheld. This procedure is confirmed in the Parliamentary Procedure section of the City Council Manual. Therefore, the Zoning Administrator’s approval of CUP No. 23- 006 on April 19, 2023 stands. A timely appeal of the Planning Commission’s decision was appealed by Christina Price on June 23, 2023 (Attachment No. 2). In the appeal letter, counsel for the appellant cites the two discretionary decisions being appealed, and the grounds for the appeal. Below is staff analysis and response to the subject appeal letter: Appellant’s Grounds for Appeal 1. A tie vote by the Planning Commission on an appeal governed by Chapter 248 is not sufficient to grant a conditional use permit or to approve a CEQA exemption. The tie vote by the Planning Commission did not grant the subject CUP nor approve the recommended CEQA exemption. A tie vote on both motions by the Planning Commission resulted in a failure to meet the findings for both an approval and a denial. Thus, the Zoning Administrator’s action of April 19, 2023 approving the project and findings the request exempt City of Huntington Beach Printed on 7/13/2023Page 3 of 7 powered by Legistar™249 File #:23-585 MEETING DATE:7/18/2023 from CEQA was upheld. 2. No Planning Commission vote was taken to approve the CEQA exemption. Each of the motions made by Commissioners in this hearing were inclusive of the respective motion to either find the project exempt from CEQA, or not, as referenced under the recommended action of the staff report and on the agenda. 3. The application was incomplete and did not include all information required by the City’s Wireless Permit Application Form and Section 230.96 (E) and (G). Staff deemed the application complete for processing on March 21, 2023, within 30 days of its receipt, having found that the items provided to the City met the minimum requirements for a Conditional Use Permit. A Wireless Permit application was not filed and is not necessary for the subject project, as it was clear at the time of submittal that the subject request is subject to the review and approval of a Conditional Use Permit (CUP) by the Zoning Administrator, pursuant to Section 230.96 (E), which states: “No Facility shall be installed without first securing either a wireless permit or a conditional use permit…” The request to install and operate a new ground-mounted wireless facility is subject to a CUP pursuant to HBZSO Section 230.96 (E)(3). As such, a wireless permit is not required since the wireless permit review process, in addition to that of a CUP, would be duplicative. The applicant provided the minimum necessary information to process a CUP request for the proposed facility. Further, there is no other operating freestanding wireless facility within 1,000 feet of the proposed project site. Therefore, the proposed project complies with the provisions of HBZSO Sections 230.96 (E) and (G). 4. The applicant has not provided sufficient evidence to: (a) Make findings required by Chapter 241, including findings of: no detriment to property values in the neighborhood, lack of detriment to the general welfare and non-adversity of the General Plan, including the Noise Element and Noise Ordinance enacted to pursue it; Staff has reviewed the proposed project, and has identified sufficient evidence to support findings of approval, based on the project’s compliance with the HBZSO’s established standards for wireless communication facilities. There is no requirement for applicants to demonstrate to the City that there would be no detriment to property values in the neighborhood. City staff are unaware of any negative property value impact claims related to any previously approved wireless communication facility in the City. Further, the appellant has not provided any evidence to support the claim that the project would have an impact to the value of surrounding properties. The project is consistent with the goals and policies of the General Plan, as outlined in Attachment No. 1. Upon installation, the proposed facility is required by Code to comply with established noise ordinance City of Huntington Beach Printed on 7/13/2023Page 4 of 7 powered by Legistar™250 File #:23-585 MEETING DATE:7/18/2023 standards. (b) Assure the findings required by Chapter 241 will remain satisfied over the term of the conditional use permit given that, notwithstanding the City’s Zoning Ordinance, federal law (including but not limited to 47 U.S.C. 1455(a) and 47 C.F.R. 1.6100(b)(7)) entitles AT&T, or another wireless carrier, to increase tower height and width by 20 feet in each direction, and otherwise modify the facility as provided by federal law, without meaningful City review: Although federal law can preempt the City’s zoning ordinance in some regard as it applies to wireless communication facilities, the above stated scenario would require a new Conditional Use Permit application before any such modification could be made to an existing monopole facility such as is proposed. The subject CUP, if approved, is a discretionary authorization of the identified scope of work only, and does not include any modification outside of the stated scope of work, whether exempt or otherwise. Finally, demonstration of this is not a requirement of the applicant for land use approval by the City. (c) Demonstrate compliance with the identification of all antennas within 1,000 feet and co- location requirements of Section 230.96 (E)(1)(g) and (G)(5); HBZSO Section 230.96 (E)(1)(g) and (g)(5) apply to co-location. As previously stated, the proposed project was not subject to the review or approval of a wireless permit, and thus this section is not applicable. For the purposes of Section 230.96 (G)(5), there are no operating wireless facilities within 1,000 feet of the project site, as verified by staff during its review of the CUP application. (d) Demonstrate to the satisfaction of Section 230.96 (G)(7) regarding compliance with federal rules and regulations, including environmental analysis under the National Environmental Policy act and avoidance of “take” under the Migratory Bird Treaty Act. HBZSO Section (G)(7) states: “Interference. To eliminate interference at all times, other than during the 24-hour cure period, the applicant shall comply with all FCC standards and regulations regarding interference and the assignment of the use of the radio frequency spectrum. The applicant shall not prevent the City of Huntington Beach or the countywide system from having adequate spectrum capacity on the City’s 800 MHz voice and data radio frequency systems. The applicant shall cease operation of any Wireless Antenna causing interference with the City’s facilities immediately upon the expiration of the 24-hour cure period until the cause of the interference is eliminated.” This section does not require that the applicant demonstrate compliance with either the National Environmental Policy Act (NEPA) or the Migratory Bird Treaty Act (MBTA) as a part of its local discretionary review. There may exist a requirement for the applicant to comply with NEPA or the MBTA for compliance with the federal license, but these City of Huntington Beach Printed on 7/13/2023Page 5 of 7 powered by Legistar™251 File #:23-585 MEETING DATE:7/18/2023 standards are not a local requirement and therefore not a requirement to obtain land use approval to install and operate a wireless facility in Huntington Beach. 5. The project, including the 60-foot tower (which can be raised to 80 feet by-right under federal law), cooling equipment, 20kW diesel generator, and associated fuel adjacent to residential properties: (a) Does not qualify for a CEQA exemption under CEQA Guidelines Section 15303 because the project does not entail the conversion or construction of a “small structure” within the meaning of the regulation and case law, and (b) “Unusual circumstances” also exist in light of the factors listed above and the potential harm to Cooper’s hawks documented to roost and nest in trees on and adjacent to the project site. The project does qualify for an exemption under CEQA Guidelines Section 15303. In the scope of describing what is considered a small structure, the Guidelines offer a range of structures that include, at the maximum, a 10,000 sq. ft. commercial building, which is far larger in size and scope than the proposed project. The appellant’s letter identifies that public comments advise the existence of the Cooper’s hawk nesting on the subject property. While citing the presence of Cooper’s hawk does not indicate that the project will have a significant impact on them, Cooper’s hawk is a protected species under the MBTA. The MBTA protects over 1,000 species, including geese, ducks, shorebirds, raptors, songbirds and many relatively common species. Although existing trees within and near the project site may contain nesting areas for birds, the project site does not serve as a wildlife corridor or habitat linkage as it is essentially isolated vegetation within an urbanized area. Notwithstanding, the Federal MBTA protects migratory birds and their occupied nests and eggs and as such, any vegetation removal should occur outside of the bird-nesting season. If active nests are encountered outside of the nesting season, standard protocols of the regulatory agencies such as the California Department of Fish and Wildlife are in place to ensure no impacts to protected species would occur. As such, the presence of Cooper’s hawk and implementation of applicable laws and regulations to protect Cooper’s hawk as well as other avian species do not constitute unusual circumstances. Further, as noted in No. 4 above, compliance with the MBTA is not a requirement of the HBZSO, nor an applicable function of CEQA, in that the project is exempt and complies with all applicable development standards for wireless communication facilities. 6. Applicant has not demonstrated federal preemption applies due to the applicant: City of Huntington Beach Printed on 7/13/2023Page 6 of 7 powered by Legistar™252 File #:23-585 MEETING DATE:7/18/2023 (a) Having submitted a materially incomplete application, (b) Providing inadequate documentation of inability to substantially close a gap in personal wireless services, or otherwise meet the standard for federal preemption, in the event this specific application is denied, and (c) Because the City must retain an independent expert opinion pursuant to Section 230.96 (A) and (F) prior to accepting a claim of denial of effective service, and has not done so. As discussed previously, the application for the subject CUP is complete. The applicant’s project description (Attachment No. 3) provides documentation that a gap in coverage exists. The language referenced above is in reference to HBZSO Section 230.96 (F), wherein an applicant may assert federal preemption at time of appeal to the Planning Commission. It should be noted that the federal preemption would apply only if and when the discretionary review body were to successfully vote to deny an application for a CUP to install and operate a wireless communication facility. The Zoning Administrator acted to approve the CUP application, which did not require the applicant to invoke the federal preemption. Further, the applicant would have had to file a request for Denial of Effective Service pursuant to HBZSO Section 230.96 (F) during the appeal period following the Zoning Administrator’s action. The project was not denied and the applicant did not have to file a request for a Denial of Effective Service. Therefore, this section is not applicable to the subject project and the appellant’s objection is moot. Strategic Plan Goal: Infrastructure & Parks Attachments: 1. Suggested Findings and Conditions of Approval 2. Site Plans, Elevations, and Photo-simulations 3. Notice of Appeal received and dated June 23, 2023 4. Zoning Justification Letter 5. Gap in Coverage Exhibit 6. Planning Commission Staff Report dated June 13, 2023 City of Huntington Beach Printed on 7/13/2023Page 7 of 7 powered by Legistar™253 ATTACHMENT NO. 1 FINDINGS AND CONDITIONS OF APPROVAL CONDITIONAL USE PERMIT NO. 23-006 FINDINGS FOR PROJECTS EXEMPT FROM CEQA: The Zoning Administrator finds that the project will not have any significant effect on the environment and is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the CEQA Guidelines, because the project involves the installation of small new equipment for a wireless communication facility. FINDINGS FOR APPROVAL – CONDITIONAL USE PERMIT NO. 23-006: 1. Conditional Use Permit No. 23-006 to construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property will not be detrimental to the general welfare of persons working or residing in the vicinity or detrimental to the value of the property and improvements in the neighborhood because the facility is located approximately 55 feet from the nearest residential uses (to the north) and is located adjacent to existing broadleaf trees of similar height and appearance. Additionally, the structure is setback approximately 140 feet from Slater Avenue to the south and approximately 136 feet from the adjacent residences to the east to help mitigate any visual impacts. The project includes pole-mounted equipment at an overall height of 55 feet that, although in excess of the maximum 40 feet zoning height requirement, will minimize visual impacts of the installation through the incorporation of stealth design techniques, and will not interfere with other communication, radio, or television transmission/reception in and around the subject site. All associated ground mounted equipment will be placed behind an eight foot high split faced block wall that provides sound attenuation. The remaining enclosure block wall will matches the height and appearance of the existing perimeter block wall of the subject property which will further reduce the likelihood of visual and noise impacts. No significant impacts related to traffic, safety, or noise will be generated by the wireless communication facility. 2. The granting of Conditional Use Permit No. 23-006 to construct a new freestanding ‘mono- broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property will not adversely affect the General Plan in that it is consistent with the following General Plan goals and policies: a. Land Use Element Goal LU-1: New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community. Policy LU-1-D: Ensure that new development projects are of compatible proportion, scale, and character to complement adjoining uses. b. Public Services and Infrastructure Element 254 Goal PSI-10: Superior electricity, natural gas, telephone, and data services improve quality of life and support economic development. Policy PSI-10-C: Support the use of new and emerging communication technologies. Conditional Use Permit No. 23-006 will permit the installation of a new wireless communication facility on a pole designed to appear as a mature broadleaf tree. The facility is designed, and conditioned, in a manner that will be minimally noticeable from the public right-of-way and is located outside of typical vehicular and pedestrian lines of sight. The structural pole, antennas, and associated equipment blend in with the existing trees and landscaping of the surrounding area. The facility incorporates stealth design techniques and is proposed in a minimally impactful location. 3. Conditional Use Permit No. 23-006 to construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property will comply with the provisions of the base district and other applicable provisions in Titles 20-25 of the Huntington Beach Zoning and Subdivision Ordinance in that a conditional use permit is required to install a new ground mounted wireless communication facility that exceeds the maximum height of 40 feet. CONDITIONS OF APPROVAL – CONDITIONAL USE PERMIT NO. 23-006: 1. The site plan, photo simulations, and elevations received and dated February 28, 2023 shall be the conceptually approved design with the following modifications: a. The portions of the block wall not enclosing above ground equipment serving the monobroadleaf facility shall be maximum 6 ft. high to be compatible with the existing block wall along the north property line. 2. Prior to the issuance of building permits, the applicant shall submit evidence to the Director of Community Development that a Federal Communications Commission (FCC) license to operate the wireless communication facility has been approved. 3. Final building permit(s) cannot be approved until the following have been completed: a. All improvements must be completed in accordance with approved plans. b. Compliance with all conditions of approval specified herein shall be verified by the Community Development Department. c. All building spoils, such as unusable lumber, wire, pipe, and other surplus or unusable material, shall be disposed of at an off-site facility equipped to handle them. 4. Prior to submittal of building permits, zoning entitlement conditions shall be printed verbatim on one of the first three pages of all the working drawing sets used for issuance of building permits (architectural, structural, electrical, mechanical, and plumbing) and shall be referenced in the sheet index. The minimum font size utilized for printed text shall be 12 point. 255 5. During demolition, grading, site development, and/or construction, the following shall be adhered to: a. Construction equipment shall be maintained in peak operating condition to reduce emissions. b. Use low sulfur (0.5%) fuel by weight for construction equipment. c. Truck idling shall be prohibited for periods longer than 5 minutes. d. Attempt to phase and schedule activities to avoid high ozone days first stage smog alerts. e. Discontinue operation during second stage smog alerts. f. Ensure clearly visible signs are posted on the perimeter of the site identifying the name and phone number of a field supervisor to contact for information regarding the development and any construction/ grading activity. 6. The applicant and/or applicant’s representative shall be responsible for ensuring the accuracy of all plans and information submitted to the City for review and approval. 7. CUP No. 23-006 shall become null and void unless exercised within two years of the date of final approval or such extension of time as may be granted by the Director pursuant to a written request submitted to the Community Development Department a minimum 30 days prior to the expiration date. 8. The Development Services Departments and divisions (Building & Safety, Fire, Planning, and Public Works) shall be responsible for ensuring compliance with all applicable code requirements and conditions of approval. The Director of Community Development may approve minor amendments to plans and/or conditions of approval as appropriate based on changed circumstances, new information or other relevant factors. Any proposed plan/project revisions shall be called out on the plan sets submitted for building permits. Permits shall not be issued until the Development Services Departments have reviewed and approved the proposed changes for conformance with the intent of the Planning Commission’s action. If the proposed changes are of a substantial nature, an amendment to the original entitlement reviewed by the Planning Commission may be required pursuant to the provisions of HBZSO Section 241.18. INDEMNIFICATION AND HOLD HARMLESS CONDITION: The owner of the property which is the subject of this project and the project applicant if different from the property owner, and each of their heirs, successors and assigns, shall defend, indemnify and hold harmless the City of Huntington Beach and its agents, officers, and employees from any claim, action or proceedings, liability cost, including attorney’s fees and costs against the City or its agents, officers or employees, to attack, set aside, void or annul any approval of the City, including but not limited to any approval granted by the City Council, Planning Commission, or Design Review Board concerning this project. The City shall promptly notify the applicant of any claim, action or proceeding and should cooperate fully in the defense thereof. 256 3300 IRVINE AVENUE, SUITE 300,NEWPORT BEACH, CA 92660TEL: (949) 387-1265FAX: (949) 387-12751452 EDINGER AVE.TUSTIN, CALIFORNIA 927804430 E. MIRALOMA AVE. SUITE DANAHEIM, CALIFORNIA 92807T-1VICINITY MAPGENERAL CONTRACTOR NOTESAPPROVALSLEGAL DESCRIPTIONTHE FOLLOWING PARTIES HEREBY APPROVE AND ACCEPT THESE DOCUMENTS &AUTHORIZE THE SUBCONTRACTOR TO PROCEED WITH THE CONSTRUCTION DESCRIBEDHEREIN. ALL DOCUMENTS ARE SUBJECT TO REVIEW BY THE LOCAL BUILDINGDEPARTMENT & MAY IMPOSE CHANGES OR MODIFICATIONS.DISCIPLINE:SIGNATURE:DATE:AT&T RF ENGINEER:AT&T OPERATIONS:SITE ACQUISITION:CONSTRUCTION MANAGER:PROPERTY OWNER:ZONING VENDOR:PROJECT MANAGER:SUBCONTRACTOR SHALL VERIFY ALL PLANS & EXISTING DIMENSIONS & CONDITIONS ONTHE JOB SITE & SHALL IMMEDIATELY NOTIFY THE ENGINEER IN WRITING OF ANYDISCREPANCIES BEFORE PROCEEDING WITH THE WORK OR BE RESPONSIBLE FOR SAME.GENERAL NOTESTHE FACILITY IS UNMANNED AND NOT FOR HUMAN HABITATION. A TECHNICIAN WILL VISITTHE SITE AS REQUIRED FOR ROUTINE MAINTENANCE. THE PROJECT WILL NOT RESULT INANY SIGNIFICANT DISTURBANCE OR EFFECT ON DRAINAGE; NO SANITARY SEWERSERVICE, POTABLE WATER, OR TRASH DISPOSAL IS REQUIRED AND NO COMMERCIALSIGNAGE IS PROPOSED.Your world. DeliveredLOCAL MAPDO NOT SCALE DRAWINGSDRAWING INDEXDRIVING DIRECTIONSPROJECT TEAMCODE COMPLIANCESITE INFORMATION1. 2019 CALIFORNIA BUILDING CODE2. 2019 CALIFORNIA ELECTRICAL CODEADOPTED 2017 NEC3. 2019 CALIFORNIA FIRE CODE4. 2019 CALIFORNIA MECHANICAL CODE5. 2019 CALIFORNIA PLUMBING CODE6. 2019 CALIFORNIA ENERGY CODE7. COUNTY COASTAL ZONE LAND USEORDINANCE-TITLE 238. COUNTY FIRE CODE ORDINANCE - TITLE 169. COUNTY LAND USE ORDINANCE - TITLE 2210.COUNTY BUILDING AND CONSTRUCTIONORDINANCE - TITLE 19ALL WORKS AND MATERIALS SHALL BE PERFORMED AND INSTALLED IN ACCORDANCE WITHTHE CURRENT EDITIONS OF THE FOLLOWING CODES AS ADOPTED BY THE LOCALGOVERNING AUTHORITIES. NOTHING IN THESE PLANS IS TO BE CONSTRUED TO PERMITWORK NOT CONFORMING TO THE LATEST EDITIONS OF THE FOLLOWING CODES.PROJECT DESCRIPTIONAPPLICANT / LESSEE1452 EDINGER AVE. 3RD FLOORTUSTIN, CALIFORNIA 92780Your world. DeliveredLATITUDE:33° 42' 32.13" N (33.708925°)LONGITUDE:117° 59' 14.66" W (-117.987406°)LAT./LONG. TYPE:NAD 83GROUND ELEVATION:28.2' AMSLABOVE GROUND LEVEL:60'-0" A.G.L.APN #:167-312-08AREA OF CONSTRUCTION:±425 SQ. FT.ZONING / JURISDICTION:CITY OF NEWPORT BEACHCURRENT ZONING:COMMERCIAL (GENERAL)PROPOSED USE:UNMANNED TELECOMMUNICATIONS FACILITYHANDICAP REQUIREMENTS:FACILITY IS UNMANNED AND NOT FOR HUMAN HABITATION. HANDICAPPED ACCESS NOT REQUIREDPROPERTY OWNEROWNER:HUNTINGTON BEACH COMMUNITY CHURCHADDRESS:8101 SLATER AVENUECITY,STATE,ZIP:HUNTINGTON BEACH, CA 92647CONTACT:(714) 818-9698TELEPHONE:sean@a2zz.comSITE NUMBER: CLL01310 - NSBSITE NAME: HBCCFA#: 13895629USID#: 3222498101 SLATER AVENUEHUNTINGTON BEACH, CA 92647ORANGE COUNTYSI5&SI5&···········CLIENT REPRESENTATIVEENGINEERCOMPANY: CASA INDUSTRIES, INC.ADDRESS: 4430 E. MIRALOMA AVE. SUITE DCITY,STATE,ZIP: ANAHEIM, CA 92807CONTACT: JULIUS SANTIAGOPHONE: (714) 553-8899EMAIL:jsantiago@casaind.comATT PROJECT MANAGERAPPLICANTRF ENGINEERCONSTRUCTION MANAGERSITE ACQUISITIONZONINGCOMPANY: SMARTLINK, LLCADDRESS: 3300 IRVINE AVENUE, SUITE 300CITY,STATE,ZIP: NEWPORT BEACH, CA 92660CONTACT: MOISES ACEVESPHONE: (760) 799-6670EMAIL:moises.aceves@smartlinkgroup.comCOMPANY: SMARTLINK, LLCADDRESS: 3300 IRVINE AVENUE, SUITE 300CITY,STATE,ZIP: NEWPORT BEACH, CA 92660CONTACT: JOHN SILVERMANPHONE: (818) 832-0631EMAIL:john.sIlverman@smartlinkgroup.comCOMPANY: AT&TADDRESS: 739 E SANTA CLARA ST.,ROOM 217CITY,STATE,ZIP: VENTURA, CA. 93001CONTACT: MAHESH KOLURPHONE: (562) 412-7679EMAIL:mk5852@att.comCOMPANY: AT&TADDRESS: 1452 EDINGER AVE.CITY,STATE,ZIP: TUSTIN, CA. 92780CONTACT: IVAN OCEGUEDAPHONE: (562) 210-9855EMAIL:io109k@att.comCOMPANY: AT&TADDRESS: 1452 EDINGER AVE.CITY,STATE,ZIP: TUSTIN, CA. 92780COMPANY: AT&TADDRESS: 1452 EDINGER AVE.CITY,STATE,ZIP: TUSTIN, CA. 92780CONTACT: IVAN OCEGUEDAPHONE: (562) 210-9855EMAIL:io109k@att.comOUTDOOR EQUIPMENTSCOMPANY: SMARTLINK, LLCADDRESS: 3300 IRVINE AVENUE, SUITE 300CITY,STATE,ZIP: NEWPORT BEACH, CA 92660CONTACT: JOHN SILVERMANPHONE: (818) 832-0631EMAIL:john.sIlverman@smartlinkgroup.com257 258 259 ·3300 IRVINE AVENUE, SUITE 300,NEWPORT BEACH, CA 92660TEL: (949) 387-1265FAX: (949) 387-12751452 EDINGER AVE.TUSTIN, CALIFORNIA 927804430 E. MIRALOMA AVE. SUITE DANAHEIM, CALIFORNIA 92807A-11SITE PLAN10'20' 40'1"=20'-0"SCALE:SLATER AVE260 ·3300 IRVINE AVENUE, SUITE 300,NEWPORT BEACH, CA 92660TEL: (949) 387-1265FAX: (949) 387-12751452 EDINGER AVE.TUSTIN, CALIFORNIA 927804430 E. MIRALOMA AVE. SUITE DANAHEIM, CALIFORNIA 92807A-1.11ENLARGED SITE PLAN10' 20' 40'1"=20'-0"SCALE:261 3300 IRVINE AVENUE, SUITE 300,NEWPORT BEACH, CA 92660TEL: (949) 387-1265FAX: (949) 387-12751452 EDINGER AVE.TUSTIN, CALIFORNIA 927804430 E. MIRALOMA AVE. SUITE DANAHEIM, CALIFORNIA 92807A-22ANTENNA AND RRU SCHEDULE (PENDING RFDS)3ANTENNA PLAN3/8"=1'-0"SCALE:1LEASE AREA PLAN3/8"=1'-0"SCALE:·262 3300 IRVINE AVENUE, SUITE 300,NEWPORT BEACH, CA 92660TEL: (949) 387-1265FAX: (949) 387-12751452 EDINGER AVE.TUSTIN, CALIFORNIA 927804430 E. MIRALOMA AVE. SUITE DANAHEIM, CALIFORNIA 92807A-31NORTH ELEVATION 1/4"=1'-0"SCALE:2EAST ELEVATION 1/4"=1'-0"SCALE:3SOUTH ELEVATION 1/4"=1'-0"SCALE:4WEST ELEVATION 1/4"=1'-0"SCALE:··263 8101 Slater Avenue Huntington Beach CA 92647 CLL01310 Accuracy of photo simulation based upon information provided by project applicant. Looking north from Slater AvenueProposed View 1 Existing proposed monobroadleaf proposed equipment enclosure proposed parking bollards proposed equipment xxxxxxxxxxx ©2023 Google Maps 264 Accuracy of photo simulation based upon information provided by project applicant. Looking west from Marken LaneProposed View 2 Existing proposed monobroadleaf proposed equipment xxxxxxxxxxx 8101 Slater Avenue Huntington Beach CA 92647 CLL01310 ©2023 Google Maps 265 Accuracy of photo simulation based upon information provided by project applicant. Looking southeast from Windy Sands CircleProposed View 3 Existing proposed monobroadleaf proposed equipment enclosure proposed equipment xxxxxxxxxxx 8101 Slater Avenue Huntington Beach CA 92647 CLL01310 ©2023 Google Maps 266 267 268 On Behalf of John Silverman Wireless Development Specialist 3300 Irvine Ave., Suite #300 Newport Beach, CA 92660 818.823.0631 cellular john.silverman@smartli nkgroup.com AT&T Project Number: CLL01310 AT&T Project Name: HBCC City of Huntington Beach Application for a Conditional Use Permit Project Information and Justification Letter of Colocation Efforts and Alternative Site Analysis AT&T Mobility (AT&T) is requesting approval of a Conditional Use Permit for a Wireless Facility application for the construction and operation of an unmanned wireless telecommunications facility (cell site), and presents the following project information for your consideration: Project Location Address: 8101 SLATER AVENUE, HUNTINGTON BEACH, CA 92647 APN: 167-312-08 Zoning designation: COMMERCIAL (GENERAL) Project Representative John Silverman Smartlink, LLC 3300 Irvine Ave., Suite #300 Newport Beach, CA 92660 818.823.0631 cellular John.silverman@smartlinkgroup.com AT&T Contact Ivan Ocegueda, Project Manager 1452 Edinger Ave. Tustin, CA 92780-6246 io109k@att.com 562.210.9855 Project Description AT&T proposes to construct an unmanned wireless telecommunications facility camouflaged as a broadleaf tree on the property. The antennas will be screened between branches of the mono-broadleaf structure. The associated equipment cabinets will be located within an 8-foot-tall CMU wall enclosure with chain-link lid affixed to the top. AT&T will work with the City and the community to install a state-of-the-art stealth site which will provide a benefit to the residents and visitors of the area. The equipment will consist of: 60-foot mono-broadleaf structure, Emerson power cabinet, Purcell cabinets (stacked), twenty panel antennas (five per sector), forty-eight RRUs at antenna level (12 per sector), one GPS antenna, a 20 kilowatt compact generator on concrete pad, four DC-9 surge suppressors, and four DC- 12 Outdoor units within the walk-in cabinet. 269 Hours of Operation & Number of Employees The wireless facility will be in operation 24 hours a day, 7 days a week but is an unmanned facility. A networks operation personnel member will visit the site every 4-6 weeks for general maintenance review. Project Objectives There are several reasons why a wireless carrier requires the installation of a cell site within a specified area to close a “significant gap in coverage:” • The radio signal must be of sufficient strength to achieve consistent, sustainable, and reliable service to customers at a level sufficient for outdoor, in-vehicle, and in-building penetration with good voice quality (Threshold, -76db). • When nearby other sites become overloaded, and more enhanced voice and data services are used (5G and other high-speed data services) signal contracts and a gap is created. With heavy use it is intensified due to the unique properties of digital radio transmissions. In this specific case, this location was selected because AT&T’s radio-frequency engineers (RF) have identified a significant gap in coverage in the vicinity of ____ and the surrounding community as demonstrated on the enclosed radio-signal propagation maps. The proposed use is necessary to close a significant gap in coverage. The wireless facility is necessary to close a significant gap in coverage, exhibited in the justification package dated November 12, 2020 on slides 3-5. Slide Three shows the significant coverage gap based on analysis of the AT&T system. Slide Four shows the coverage gap addressed by the placement of the proposed wireless facility on the site indicated above. Slide Five shows the signal coverage the proposed wireless facility will provide in a vacuum. As is noted, the placement of the wireless facility proposed will address the significant gap in coverage. The proposed wireless facility is necessary to address the significant gap in coverage as a different placement or proposed antenna structure would cover less geographic area. AT&T is proposing the minimum necessary antenna schedule as is necessary to address the gap in coverage shown in Slide Three. AT&T’s search area representing significant coverage gap 270 Alternative Site Analysis The following locations were evaluated and the reasons why they were not selected for this project are addressed: • Huntington Beach Assistance League – 8071 Slater Avenue, Huntington Beach, CA 92647 (APN: 167-312-07). Location was originally chosen for the project, but due to boundary limits shown on survey, there was not enough space to build without stretching out into the parking spaces. Landlord considered this proposal, but ultimately decided they did not want to lose any parking, so AT&T moved on to the current proposed site (which has the room to build without sacrificing any parking spaces as is indicated on associated plans). 271 • Ocean Plaza – 17011 Beach Blvd., Huntington Beach, CA 92647 (APN: 165-364-16). Owners of property were approached concerning the project but expressed they were uninterested in pursuing. • Lowe's Parking Lot – 8175 Warner Ave, Huntington Beach, CA 92647 (APN: 107-704-05). The owner was approached with a proposal for this project, but they were uninterested in the project. • SCE Substation – on the corner of Warner Ave and B Lane, directly opposite the Lowes. This property was considered but rejected due to the lack of space for which to propose the siting of an antenna facility. • Empty Car Lot – 17262 Beach Blvd., Huntington Beach, CA 92647(APN: 167-311-02). Owner was approached but never responded to inquiries. • A 1st Impression Full-Service Sign Shop – 17191 Beach Blvd Huntington Beach, CA 92647 (APN: 165-283-17). Owner was approached but never responded to inquiries. Findings/Burden of Proof The proposed use is consistent with the adopted General Plan. AT&T confirms that the plans will conform to the requirements under the General Plan, specifically those requirements set out for Wireless Facilities. The proposed use will not adversely affect the health, peace, comfort, or welfare of persons residing or working in the surrounding area. The project will not have an adverse effect upon adjacent or abutting properties as it is a stealth design that will blend naturally with the subject property and the surrounding community. The project will provide a public benefit of better wireless telecommunications and data services to the surrounding neighborhoods and community. Description of surrounding uses to the North, South, East and West: The project is proposed on a piece of property designated as Commercial General. To the west is a piece of property designated as Commercial General. The property to the North is Single Family Residential. The property to the east is Single Family Residential. Description of population served by the proposed use or project. AT&T intends to serve the surrounding community near the project, with the increased wireless signal available with addition of this facility and the inclusion of First Net which prioritizes calls going to emergency responders. Further information on the spread of signal added with the proposed facility associated with this project is available on the Justification Package dated 1-27-2023 (power point document) submitted in association with this narrative. The proposed use will not be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity of the site. The project will not have an adverse effect upon adjacent or abutting properties as it is a stealth design that will blend naturally with the subject property and the surrounding community. The proposed us will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare. The proposed use is a Wireless Facility, in the form of a mono-broadleaf with required equipment area. There is no aspect of this project which will jeopardize, endanger, or otherwise constitute a menace to the public health, safety, or general welfare. In point of 272 fact, the project will serve the public safety and general welfare with additional wireless signal and First Net support for first responder services. The site for the proposed use is adequate in size and shape. AT&T is proposing a mono-broadleaf design for this project which is considered a stealth design in accordance with the Huntington Beach general code. The requested height of the mono- broadleaf design is the minimum height necessary in order to fill the sign ificant gap in coverage for this project. AT&T uses the most advanced technology and design when constructing the mono-pine so as to blend the facility with the surrounding community and landscaping and thereby minimizing the visual impact of the site. GENERAL INFORMATION Site Selection Customer demand drives the need for new cell sites. Drive-tests to gauge wireless signals in the area are conducted, and scientific modeling using sophisticated software is evaluated. Once the area requiring a new site is identified, a target ring on a map is provided to a real estate professional to begin a search for a suitable location. During an initial reconnaissance, properties for consideration for the installation of a cell site must be located in the general vicinity of the ring, with an appropriate zoning designation, and appear to have enough space to accommodate an antenna structure and the supporting radio equipment. The size of this space will vary depending on the objective of the site. The owners of each prospective location are notified to assess their interest in partnering with AT&T. Four key elements are considered in the selection process: • Leasing: The property must have an owner who is willing to enter into a long-term lease agreement under very specific terms and conditions. • Zoning: It must be suitably zoned in accordance with local land-use codes to allow for a successful permitting process. • Construction: Construction constraints and costs must be reasonable from a business perspective, and the proposed project must be capable of being constructed in accordance with local building codes and safety standards. • RF: It must be strategically located to be able to achieve the RF engineer’s objective to close the significant gap with antennas at a height to clear nearby obstructions. The Benefits to the Community Approximately 90-percent of American adults subscribe to cell phone service. People of all ages rely increasingly on their cell phones to talk, text, send media, and search the Internet for both personal and business reasons. More and more, they are doing these things in their homes, therefore, becoming reliant on adequate service within residential neighborhoods. In fact, 50-percent of people relocating are not signing up for landline service at their new location and are using their cell phone as their primary communication method. The installation and operation of the proposed facility will offer improved: • Communications for local, state, and federal emergency services providers, such as police, fire, paramedics, and other first-responders. • Personal safety and security for community members in an emergency, or when there is an urgent need to reach family members or friends. Safety is the primary reason parents provide cell phones to their children. Currently 25% of all preteens, ages 9 to 12, and 75% of all teens, aged 13 to 19, have cell phones. • Capability of local businesses to better serve their customers. • Opportunity for a city or county to attract businesses to their community for greater economic development. 273 • Enhanced 911 Services (E911) – The FCC mandates that all cell sites have location capability. Effective site geometry within the overall network is needed to achieve accurate location information for mobile users through triangulation with active cell sites. (Over half of all 911 calls are made using mobile phones.) Safety – RF is Radio The FCC regulates RF emissions to ensure public safety. Standards have been set based on peer-reviewed scientific studies and recommendations from a variety of oversight organizations, including the National Council on Radiation Protection and Measurements (NCRP), American National Standards Institute (ANSI), Institute of Electrical and Electronics Engineers (IEEE), Environmental Protection Agency (EPA), Federal Drug Administration (FDA), Occupational Safety and Health Administration (OSHA), and National Institute for Occupational Safety and Health (NIOSH). Although the purview of the public safety of RF emissions by the FCC was established by the Telecommunications Act of 1996, these standards remain under constant scrutiny. All AT&T cell sites operate well below these standards, and the typical urban cell site operates hundreds or even thousands of times below the FCC’s limits for safe exposure. AT&T Company Information AT&T is one of the fastest growing nationwide service providers offering all digital voice, messaging and high-speed data services to nearly 30 million customers in the United States. AT&T is a “telephone corporation”, licensed by the Federal Communications Commission (FCC) to operate in the 1950.2-1964.8, 1965.2-1969.8 MHz and 1870.2-1884.8-1889.8 MHz frequencies, and a state- regulated Public Utility subject to the California Public Utilities Commission (CPUC). The CPUC has established that the term “telephone corporation” can be extended to wireless carriers, even though they transmit signals without the use of telephone lines. AT&T will operate this facility in full compliance with the regulations and licensing requirements of the FCC, Federal Aviation Administration (FAA) and the CPUC, as governed by the Telecommunications Act of 1996, and other applicable laws. Conclusion The Proposed Facility is the least intrusive means by which AT&T can close its significant service coverage gap. Denial of the site or a reduction in height will materially inhibit AT&T from providing and improving wireless service in this portion of Huntington Beach. The enclosed application is presented for your consideration. AT&T requests a favorable determination and approval of this Conditional Use Permit application to build the proposed facility. Please contact me at (818) 823-0631 or john.silverman@smarlinkgroup.com for any questions or requests for additional information. Respectfully submitted, ___________________ John Silverman Real Estate Project Manager Smartlink, on behalf of AT&T 274 LTE Justification Plots Market Name: Los Angeles Site ID: CLL01310 Site Address: ATOLL Plots Completion Date: Jan 27, 2023 275 Page 2 © 2008 AT&T Knowledge Ventures. All rights reserved. AT&T is a registered trademark of AT&T Knowledge Ventures. Propagation of the site plots are based on our current Atoll (Design tool) project tool that shows the preferred design of the AT&T 4G-LTE network coverage. The propagation referenced in this package is based on proposed LTE coverage of AT&T users in the surrounding buildings, in vehicles and at street level . For your reference, the scale shown ranges from good to poor coverage with gradual changes in coverage showing best coverage to marginal and finally poor signal levels. The plots shown are based on the following criteria: Existing: Since LTE network modifications are not yet On-Air. The first slide is a snap shot of the area showing the existing site without LTE coverage in the AT&T network. The Planned LTE Coverage with the Referenced Site: Assuming all the planned neighboring sites of the target site are approved by the jurisdiction and the referenced site is also approved and On-Air, the propagation is displayed with the planned legends provided. Without Target site: Assuming all the planned neighboring sites are approved by the jurisdiction and On-Air and the referenced site is Off-Air, the propagation is displayed with the legends provided. Assumptions 276 Page 3 © 2008 AT&T Knowledge Ventures. All rights reserved. AT&T is a registered trademark of AT&T Knowledge Ventures. CLL01310 277 Page 4 LTE Coverage Before site CLL01310 278 LTE Coverage After site CLL01310 279 LTE Coverage standalone site CLL01310 280 Coverage Legend In-Building Service:In general, the areas shown in dark green should have the strongest signal strength and be sufficient for most in-building coverage. However, in-building coverage can and will be adversely affected by the thickness/construction type of walls, or your location in the building (i.e., in the basement, in the middle of the building with multiple walls, etc.) In-Transit Service: The areas shown in the yellow should be sufficient for on- street or in-the-open coverage, most in-vehicle coverage and possibly some in-building coverage. Outdoor Service:The areas shown in the purple should have sufficient signal strength for on-street or in-the-open coverage, but may not have it for in- vehicle coverage or in-building coverage. 281 PLANNING COMMISSION STAFF REPORT TO: Planning Commission FROM: Ursula Luna-Reynosa, Community Development Director BY: Hayden Beckman, Senior Planner SUBJECT: ..title APPEAL OF THE ZONING ADMINISTRATOR’S APPROVAL OF CONDITIONAL USE PERMIT NO. 23-006 (HUNTINGTON BEACH COMMUNITY CHURCH WIRELESS COMMUNICATION FACILITY) REQUEST: To construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property occupied by a church. The installation would include a four sector array of four panel antennas each that utili zes stealth design by disguising the new wireless facility within the branches of a faux broadleaf tree. LOCATION: 8101 Slater Avenue, 92647 (North side of Slater Avenue, west of Marken Lane) ..body APPLICANT: John Silverman, Smartlink Group, 1227 West Raymar Street, Santa Ana CA 92703 PROPERTY OWNER: Huntington Beach Community Church, 8101 Slater Avenue, Huntington Beach CA 92647 RECOMMENDATION: ..recommendation That the Planning Commission take the following actions: A) Find the proposed project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303, Class 3. B) Approve Conditional Use Permit No. 23-006 with findings and conditions of approval (Attachment No. 1). ..end ALTERNATIVE ACTION(S): A) Continue Conditional Use Permit No. 23-006 and direct staff to return with findings for denial. 282 B) Continue Conditional Use Permit No. 23-006 and direct staff accordingly. PROJECT PROPOSAL: Proposed Project: The subject request is to construct a new freestanding ‘mono-broadleaf’ wireless communication facility at an overall maximum height of 60 ft. on a commercial property, including the installation of an ancillary equipment enclosure located in the northwest corner of the property. The proposed maximum overall height of the antennas is 55 ft. and the freestanding tower is designed utilizing stealth techniques that will camouflage the tower, antennas, and equipment by resembling a broadleaf tree. As discussed below, the Zoning Administrator approved the request on April 19, 2023. Pursuant to Huntington Beach Zoning and Subdivision Ordinance (HBZSO) Section 248.20, actions by the Zoning Administrator may be appealed, which results in review by the Planning Commission as a new matter. The Planning Commission may act upon the application, either granting it, conditionally granting it, or denying it, irrespective of the precise grounds or scope of the appeal. Zoning Administrator Action: A public hearing before the Zoning Administrator (ZA) was held on April 19, 2023. During public comments, many nearby residents, including adjacent residential property owners, spoke in opposition to the project citing health concerns and property value concerns. The ZA explained that staff’s review was limited to aesthetics only and could not comment on property value impacts. Additionally, Federal Law preempts local jurisdictions from making decisions based on health impacts. Because the location, size, and visual appearance complied with City requirements for wireless communication facilities, the ZA approved the project on April 19, 2023, with staff’s recommended findings and conditions of approval (Attachment No. 4). A timely appeal of the ZA’s approval was filed on May 1, 2023. ISSUES AND ANALYSIS: Subject Property And Surrounding General Plan Designations, Zoning And Land Uses: LOCATION GENERAL PLAN ZONING LAND USE Subject Property: Commercial General (CG) Commercial Office (CO) Existing Church North and East of Subject Property: Residential Low Density (RL) RL Single Family Residential South of Subject Property (Across Slater Ave): Residential Medium High Density (RMH) RMH Multi-Family Residential West of Subject Property: CG CG Assistance League Thrift Shop 283 General Plan Conformance: The General Plan Land Use Map designation on the subject property is currently Commercial General (CG). The proposed project is consistent with this designation and the goals, policies, and objectives of the City’s General Plan as follows: Land Use Element Goal LU-1: New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community. Policy LU-1-D: Ensure that new development projects are of compatible proportion, scale, and character to complement adjoining uses. Conditional Use Permit No. 23-006 will permit the installation of a new wireless communication facility on a pole designed to appear as a mature broadleaf tree that will provide additional capacity to handle increased volume of wireless users in a dense area of the City, thereby providing improved wireless data services to surrounding residences and businesses. The proposed facility incorporates stealth design techniques to reduce visual impacts from surrounding uses by incorporating a mature broadleaf tree design similar to the existing mature trees within the adjacent area. Public Services and Infrastructure Element Goal PSI-10: Superior electricity, natural gas, telephone, and data services improve quality of life and support economic development. Policy PSI-10-C: Support the use of new and emerging communication technolo gies. The facility is designed, and conditioned, in a manner that will be minimally noticeable from the public right-of-way and is located outside of typical vehicular and pedestrian lines of sight. The structural pole, antennas, and associated equipment blend in with the existing trees and landscaping of the surrounding area. The facility incorporates stealth design techniques and is proposed in a minimally impactful location. Zoning Compliance: The proposed project complies with the development requirements of the Commercial Office district, the development requirements contained in Section Section 230.96 Wireless Communication Facilities of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO), and federal law (Telecommunications Act of 1996). The proposed ground mounted wireless communication facility is subject to a Conditional Use Permit at the proposed maximum overall height of 60 feet. Further, the proposed project utilizes stealth techniques to reduce visual impacts of the facility from nearby residential and commercial uses, as required by Section 230.96. The broadleaf design was chosen to provide the greatest amount of compatible design possible, citing the number of mature 284 trees that currently exist along the western property line of the subject site. The applicant provided photo simulations to illustrate street views of the existing conditions a s well as proposed conditions post-installation, with the pole mounted wireless antennas concealed within fabric ‘socks’, behind a 360-degree canopy that emulates the appearance of a mature broadleaf tree (Attachment No. 2). Appeal: The Zoning Administrator’s action on Conditional Use Permit No. 23 -006 was appealed by an adjacent property owner, Christina Price, for reasons cited in an appeal letter dated May 1, 2023 (Attachment No. 5). The reasons for the appeal are listed below with analysis from staff: A) Wireless facilities should not be sited on commercial property, as this “does not align with the General Plan or Ordinances or Wireless Facility Policy” The proposed wireless facility is consistent with its Commercial General (CG) General Plan and Commercial Office (CO) Zoning Ordinance designation. Pursuant to Section 230.96 Wireless Communication Facilities of the HBZSO, the City endeavors to locate antennas within commercial, industrial, and other non-residential zones, screen them from view, and encourage co-location with other facilities. New wireless facilities are generally designed as ancillary land uses on commercial and industrial properties, where they can be sited and designed to comply with the zoning standards in a manner that does not impact required parking, landscaping, and on-site vehicular access. Further, new wireless communications facilities require a greater vertical height than most existing buildings to achieve the necessary connection and provide data capacity to the greater wireless data network. As such, siting new communication facilities on commercially zoned properties enables greate r height as needed, and by utilizing stealth design techniques, the proposed facility will reduce visual prominence through colorization and camouflage that mimics the appearance of a mature broadleaf tree, compatible with existing on-site landscaping. The subject proposed facility is located on a commercially zoned property in a manner that is consistent with Commercial zoning development standards, and incorporates stealth design techniques to minimize visual impacts that complies with the goals and policies of the General Plan. B) The project should not have been approved without “due process verifying the applicant’s submitted burden of proof statements or sole justification for validity beyond reception in the application” The Zoning Administrator’s approval of the proposed wireless facility occurred during a regular public hearing that was duly noticed and is consistent with similarly approved ground-mounted wireless facilities utilizing stealth techniques City-wide. The applicant provided a zoning justification letter that identified project objectives and alternative site analysis, and a site justification 285 presentation identifying that a gap in coverage exists in the vicinity of the subject property (Attachment No. 3). The subject freestanding mono-broadleaf facility is proposed in this location specifically because it is a high network traffic area that experiences inadequate signal quality and this wireless facility will alleviate capacity problems relating to wireless service. C) Conditional approval “will impact property values and rental incomes for homes in three separate residential areas and other commercial properties” Under current Huntington Beach Zoning and Subdivision Ordinance (HBZSO) requirements, the City’s purview in the construction and operation of wireless communication facilities does not call for the consideration of economic impacts and is essentially limited to aesthetics. The City cannot make a determination on an application for a new wireless facility that is based in any part on the potential for impacts to property values. Regardless of location, all elements of the operation of wireless communication facilities are subject to compliance with the Telecommunications Act of 1996, as implemented by t he Federal Communications Commission (FCC). As such, the facility operator (AT&T) is subject to compliance with federal law, which preempts the HBZSO. Further, the appellant has not provided any information to support the claim that the proposed project would have an impact on residential or commercial property values. D) Conditional approval “will impact resell capability and rental marketability of homes near cell towers in three separate residential areas ” The appellant did not provide further supporting information related to this concern. However, as discussed above, economic impacts are not considered a standard of review for wireless facility applications. Environmental Status: The proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to section 15303 of the CEQA Guidelines, because the project consists of the installation of small new equipment. Coastal Status: Not Applicable. Design Review Board: On April 13, 2023, the Design Review Board recommended approval of the wireless communication facility designed as a faux broadleaf tree and associated equipment to the Zoning Administrator as proposed. Subdivision Committee: Not Applicable. Other Departments Concerns and Requirements: 286 Not Applicable. Public Notification: Legal notice was published in the Huntington Beach Wave on June 1, 2023, and notices were sent to property owners of record and tenants within a 500 ft. radius of the subject property, individuals/organizations requesting notification (Planning Division’s Notification Matrix), applicant, and interested parties. As of June 7, 2023, two public comments have been received. Application Processing Dates: DATE OF COMPLETE APPLICATION: MANDATORY PROCESSING DATE(S): March 21, 2023 May 21, 2023 The Zoning Administrator held the public hearing on April 19, 2023. SUMMARY: Staff recommends that the Planning Commission take the following actions: A) Find the proposed project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303, Class 3; and B) Approve Conditional Use Permit No. 23-006 with suggested findings and conditions of approval (Attachment No. 1). This recommendation is based on the following:  Consistent with the requirements of the base zoning district and applicable provisions of the Municipal Code;  Complies with the General Plan;  Compatible with the existing surrounding uses in proportion, scale, and character, and includes stealth design that encloses the antennas within a faux broadleaf tree. ATTACHMENTS: 1. Suggested Findings and Conditions of Approval 2. Site Plans, Elevations, and Photo Simulations Received and Dated February 28, 2023 3. Project Narrative Received and Dated February 28, 2023 4. Applicant Site Justification received and dated February 28, 2023 5. Appeal Letter Received and Dated May 1, 2023 6. Zoning Administrator Notice of Action dated April 19, 2023 287 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-607 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Theresa St. Peter, Interim Human Resources Director Subject: Resolution No. 2023-34 approving a Side Letter between the City of Huntington Beach and the City of Huntington Beach Management Employees’ Organization (MEO) Statement of Issue: As part of the negotiations for the Memorandum of Understanding (MOU) for Huntington Beach Management Employees’ Organization (MEO) effective January 1, 2022 through December 31, 2024, the City and MEO representatives agreed to a Side Letter addressing a retiree medical subsidy that was first adopted via Resolution 2014-57 and became part of the MEO MOU effective December 12, 2012 through November 1, 2015. Part of this Side Letter was included in subsequent MOU’s but part of the language was inadvertently omitted. Financial Impact:. The financial impact of the Side Letter was implemented in FY 2014-15. Recommended Action: Approve Resolution No. 2023-34, “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding Between the City and the Huntington Beach Management Employees’ Organization (MEO) by Adopting the Side Letter of Agreement” and authorizing the Side Letter between the City of Huntington Beach and the Huntington Beach MEO retroactive to FY 2015-16. Alternative Action(s): Do not approve Resolution No. 2023-34 authorizing the Side Letter between the City of Huntington Beach and the Huntington Beach MEO retroactive to FY 2015-16. Analysis: This Side Letter provides language that reflects the agreement reached between the City of Huntington Beach and the Huntington Beach MEO related to Retiree Medical Subsidy wherein City of Huntington Beach Printed on 7/13/2023Page 1 of 2 powered by Legistar™288 File #:23-607 MEETING DATE:7/18/2023 married retirees hired by the City of Huntington Beach prior to October 1, 2014, are both eligible for benefits under the Retiree Medical Subsidy Plan for MEO employees. 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. 2023-34, “A Resolution of the City of Huntington Beach Amending the Memorandum of Understanding Between the City and the Huntington Beach Management Employees’ Organization (MEO) by Adopting the Side Letter of Agreement” 2. Side Letter between the City of Huntington Beach and MEO City of Huntington Beach Printed on 7/13/2023Page 2 of 2 powered by Legistar™289 290 291 292 293 294 295 296 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-580 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL / HOUSING AUTHORITY ACTION SUBMITTED TO:Honorable Mayor and City Council Members / Honorable Chairman and Board Members SUBMITTED BY:Al Zelinka, City Manager / Executive Director VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Ursula Luna-Reynosa, Director of Community Development Brian Smith, Lieutenant / Manager, Police Department Community Outreach Bureau / Homeless and Behavioral Health Services Subject: Future Development of 17642 Beach Blvd. Statement of Issue: In August of 2020, the City of Huntington Beach Housing Authority (the “Housing Authority”) utilized funds from the Low and Moderate Income Housing Asset Fund (“LMIHAF”) to purchase a parcel of land located at 17631 Cameron Lane and entered into a lease to use the adjacent parcel at 17642 Beach Blvd. In January 2021, the Housing Authority completed the acquisition of 17642 Beach Blvd, also using funds from LMIHAF. Combined, this 1.6 acre site (the “Site”) was purchased for a future affordable housing project. At about the same time, the City was in the process of identifying properties that could serve as the location of a temporary homeless shelter (“Navigation Center”), a facility intended to provide shelter and services for up to 174 individuals experiencing homelessness. The City ultimately selected the Site as an interim location for the Navigation Center. Since LMIHAF was used to purchase the Site, the land must eventually be utilized for a qualifying affordable housing project within a reasonable time frame. If the Site is not ultimately used for such a project, the City must reimburse the LMIHAF with another funding source, which will most likely be the General Fund. On June 7, 2022, the Housing Authority Board Members authorized the Executive Director to execute an Exclusive Negotiations Agreement (the “Agreement”) with Jamboree Housing to explore the development of the Site for a multi-use development that would include an affordable housing component. Staff is now seeking further direction from the City Council/Board Members on the future use of the Site. City of Huntington Beach Printed on 7/13/2023Page 1 of 5 powered by Legistar™297 File #:23-580 MEETING DATE:7/18/2023 Financial Impact: The Recommended Action does not require any commitment of funding at this time. City Council/Housing Authority Recommended Action: A) Receive and file this report; and B) Provide direction to staff regarding future use of the Site. Alternative Action(s): Provide alternative direction to staff. Analysis: History and Background on LMIHAF In 1945, the California Legislature enacted the Community Redevelopment Act to assist local governments in eliminating blight through development, reconstruction, and rehabilitation of residential, commercial, industrial, and retail districts. In 1951, the Legislature superseded the Community Redevelopment Act with the Community Redevelopment Law (“CRL”), which provides funding from local property taxes to promote redevelopment of blighted areas. The CRL also established the authority for tax increment financing (“TIF”), which is a public financing method to subsidize redevelopment, infrastructure, and other community-improvement projects. TIF uses future increases in property taxes to subsidize current improvements, which are projected to create the conditions for the increases. For example, the completion of a public project might result in an increase in the value of surrounding real estate, which generates additional tax revenue. In 1976, the legislature required that 20 percent of all tax increment generated through redevelopment be set aside to create, preserve, and improve housing for low and moderate-income persons. Known as “housing set aside”, this source of funding became an important tool for the development of affordable housing in California and created tens of thousands of housing opportunities for the State's low and moderate-income residents, including in Huntington Beach. In 2011, to respond to State budget deficits, Governor Jerry Brown proposed and the State Legislature approved legislation that dissolved redevelopment agencies. On June 28, 2011, the Governor signed AB 26 1X, requiring creation of successor agencies to oversee the dissolution process. After a period of litigation, redevelopment agencies were officially dissolved as of February 1, 2012. Successor agencies were able to retain housing assets, continue to enforce housing covenants and restrictions, and exercise all other rights, powers, duties, and obligations of the former redevelopment agency as it related to affordable housing. As part of dissolution operations related to housing assets and activities of successor agencies, each housing successor was required to establish a restricted fund called the Low and Moderate Income Housing Asset Fund (“LMIHAF”). In Huntington Beach, the Housing Authority was established in 2011 per Health & Safety Code Sections 34200 et. seq. for the purpose of addressing a shortage of safe and sanitary dwelling accommodations in the City available to persons of low income at rents they can afford. On January 9, 2012, the City Council approved Resolution No. 2012-01 to confirm the City’s role as the successor to the Redevelopment Agency (the “Successor Agency”) and Resolution No. 2012-02 to City of Huntington Beach Printed on 7/13/2023Page 2 of 5 powered by Legistar™298 File #:23-580 MEETING DATE:7/18/2023 successor to the Redevelopment Agency (the “Successor Agency”) and Resolution No. 2012-02 to confirm the Housing Authority’s role as the housing successor (the “Housing Successor”). As the Housing Successor, the Housing Authority retained all funds in the LMIHAF and is authorized to manage these affordable housing assets and to exercise the housing functions that the former Redevelopment Agency previously performed. While this account does not receive new TIF, the account does collect money from the repayment of loans previously provided by the Redevelopment Agency. The Housing Authority is required to expend funds in the LMIHAF to meet its enforceable obligations, if any, and for specified administrative and monitoring costs related to ensuring the long- term affordability of units subject to affordability restrictions. The Housing Authority may then expend a specified amount per fiscal year on homeless prevention and rapid rehousing services, and must use all remaining funds for the development of affordable housing. Unencumbered funds in the LMIHAF that exceed the greater of $1M or the aggregate amount deposited into the fund during the preceding four fiscal years, results in “excess surplus”. The Housing Authority is required to prepare and submit an annual report to the City Council regarding the LMIHAF (the “Annual Report”). The Annual Report sets forth certain details of the Housing Authority activities (assets and activities) during the fiscal year. One function of the Annual Report is to conduct an “Excess Surplus Test” which provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Authority has had excess surplus and a plan to eliminate the excess surplus. Excess surplus, once identified in an Annual Report, must be encumbered by an eligible activity, within three fiscal years. Failure to encumber the excess surplus within the allocated timeframe requires that the Housing Authority either 1) transfer the excess surplus to another eligible jurisdiction for an eligible use or 2) transfer the excess surplus to the Department of Housing and Community Development to be used for certain eligible uses within 90 days of the end of the third fiscal year. In Fiscal Year 2019/2020,the Housing Authority received a large deposit in excess of $6.5M due to a re-syndication of a Low Income Housing Tax Credit (LIHTC) project where the Housing Authority provided funds to the deal. As a result, excess surplus in excess of $3M was anticipated if the Housing Authority did not encumber funds within the Fiscal Year 2020/2021. To avoid forfeiting funds to the State, the City began looking for properties to purchase for future affordable housing opportunities. History of 17631 Cameron Lane and 17642 Beach Blvd. (Site) Ultimately, on August 19, 2020 and January 5, 2021, a total of $6,094,847 of LMIFHAF funds were used to purchase the Site for use as a future affordable housing development. The purchase of the Site resolved the City’s anticipated excess surplus situation. In 2018 the City began exploring locations to establish a Navigation Center to provide shelter and services to 174 individuals experiencing homelessness in Huntington Beach. After exploring several different sites, the City chose to build a temporary Navigation Center on the Site, understanding that at some point in the near future, affordable housing must be developed on the Site or the $6,094,847 used to acquire the Site must be reimbursed to the LMIHAF. City of Huntington Beach Printed on 7/13/2023Page 3 of 5 powered by Legistar™299 File #:23-580 MEETING DATE:7/18/2023 In December of 2020, a new address was assigned for both lots as 17642 Beach Boulevard with different suites assigned to the various structures and the 17631 Cameron Lane address was eliminated. This address change was made for multiple purposes including fire response, US postal service, and utilities as the two lots are accommodating one use. On March 22, 2022, a Request for Qualifications (RFQ) was released by the Housing Authority seeking a real estate developer to develop, finance, and manage a new mixed-use development, potentially consisting of a homeless shelter, a sobering center, support services, and transitional and affordable housing at various income levels. On June 7, 2022, the City Council authorized the Housing Authority’s Executive Director to execute a no-cost Agreement with Jamboree Housing to provide exclusive negotiations and explore the development of the Site. Four Concepts for Use of the Site Since the execution of the Agreement, staff has explored various uses and potential development scenarios of the Site that would comply with zoning requirements, benefit the community, increase housing opportunities for low-income individuals and those experiencing homelessness or at-risk of experiencing homelessness, and with limited fiscal liability for the City. Staff has identified four concepts for potential uses of the Site, including the following: Concept 1: Healing Center Develop a full-scale Healing Center, consisting of a Navigation Center, sobering center, facilities for support services, and a combination of transitional, permanent supportive, and affordable housing. Concept 2: Pathways Project Develop a multi-use facility, consisting of a Navigation Center and permanent supportive housing. Concept 3: Permanent Supportive or Affordable Housing Options Develop only permanent supportive or affordable housing and identify an alternate location for a Navigation Center. Concept 4: Navigation Center Only Develop a permanent Navigation Center for individuals experiencing homelessness. Because a Navigation Center does not qualify as an affordable housing project, this option would require the City to reimburse the LMIHAF, most likely through the General Fund. As an alternative, the City Council could choose to not develop the Site for any of the above options; however, long-term use of the Site for anything other than a qualifying affordable housing development would require repayment of the LMIHAF, which would trigger excess surplus for the Housing Authority. As outlined earlier in this staff report, a finding of excess surplus would require the City of Huntington Beach Printed on 7/13/2023Page 4 of 5 powered by Legistar™300 File #:23-580 MEETING DATE:7/18/2023 Housing Authority. As outlined earlier in this staff report, a finding of excess surplus would require the Housing Authority to encumber or transfer the funds within three fiscal years. At this time, selection of one of the above proposed concepts would not commit the City to any development of the Site; rather it would provide guidance to Jamboree Housing, allowing them to refine development concepts and identify funding sources for the development. At a future date, proposals would be brought before the Housing Authority Board for consideration, along with project details including concept design, operations plan, estimated total project costs for construction, projected costs for operation, sources of funding (including any Housing Authority or City contributions), developer’s responsibilities, etc. 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: Economic Development & Housing Attachment(s): 1. PowerPoint Presentation City of Huntington Beach Printed on 7/13/2023Page 5 of 5 powered by Legistar™301 Huntington Beach City Council and Housing Authority Future Development of 17642 Beach Blvd. July 18, 2023 302 Overview •History of Redevelopment and Dissolution •Site Acquisition •Current Status •Development Concepts •Alternative Option •Conclusion •Questions 303 •Purpose of Community Redevelopment Act •How are redevelopment activities funded? •Tax Increment Financing (TIF) •Housing Set Aside •20% of TIF must be used for affordable housing History - Redevelopment 304 History - Dissolution •Dissolution of redevelopment •Successor Agency •Recognized Obligation Payment Schedule (ROPS) •Housing Successor •Low Moderate Income Housing Asset Fund (LMIHAF) •Annual Report – Excess Surplus Test 305 History – Housing Successor •HB Housing Authority designated as Housing Successor •Large Deposit (in excess of $6.5M) in FY 19/20 would generate “Excess Surplus” in next Annual Report •Encumber funds within next three fiscal years; or •Transfer amount of “Excess Surplus” to another qualified entity for a qualified project; or •Transfer amount of “Excess Surplus” to Department of Housing and Community Development •Opportunity to acquire property became available to resolve “Excess Surplus” situation 306 Site Acquisition •August 2020 & January 2021 – Project Site Acquired •December 2020 – Navigation Center Opened •June 2022 – Exclusive Negotiations Agreement (ENA) with Jamboree Housing Corporation Approved 307 Current Status •December 20, 2022 - The City Council tabled a motion to authorize the Executive Director to sign a letter of support for Jamboree Housing Corporation’s application for grant funds. •May 9, 2023 - City Council members toured two permanent supportive housing sites in Anaheim, operated by Jamboree Housing. 308 Development Concepts Healing Center •Develop a facility consisting of a Navigation Center, sobering center, facilities for support services, and a combination of transitional, permanent supportive, and affordable housing. Pathways Project •Develop a multi-use facility, consisting of an adaptable Navigation Center (in the event it can be eliminated or downsized in the future) and permanent supportive housing. Housing Only •Develop only permanent supportive and /or affordable housing options and identify an alternate location for a Navigation Center. Navigation Center Only •Develop a permanent Navigation Center and reimburse the LMIHAF account. 309 Alternative Option As an alternative, the City Council could choose to not develop the Site for any of the above options; however, long-term use of the Site for anything other than a qualifying affordable housing development would require repayment of the LMIHAF account, which would trigger excess surplus for the Housing Authority. 310 Conclusion Selection of one of the above development concepts would not commit the Housing Authority to development of the property, rather it would provide guidance to Jamboree Housing , allowing them to refine the concepts and identify funding sources for the development. At a future date, proposals will be brought before the City Council / Housing Authority Board (i.e. City Council) for consideration, along with project details including : •concept design •operations plan •estimated total project costs for construction •projected costs for operation •sources of funding (including any Housing Authority or City contributions) •developer’s responsibilities 311 312 313 314 315 316 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-584 MEETING DATE:7/18/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Al Zelinka, City Manager VIA:Ursula Luna-Reynosa, Director of Community Development PREPARED BY:Charles Kovac, Housing Manager Subject: Middle-Income Housing Program Update Statement of Issue: On July 20, 2021, the City Council adopted Resolution No. 2021-43 and Resolution No. 2021-44, approving and authorizing the City Manager to enter into Public Benefit Agreements and execute the Middle-Income Housing Program (the “Program”) and associated agreements with California Municipal Finance Authority (CMFA) and project sponsor, Catalyst, for the acquisition and conversion of two market-rate apartments (Elan and Breakwater Apartments) for middle-income housing. Since the City Council approval in July 2021, Catalyst has been actively proceeding with conversion of the Elan and Breakwater properties to middle-income housing. On May 16, 2023, Councilmember McKeon brought forward an “H” item related to the Middle-Income Housing Program and requested a presentation to update the City Council on the status of the Program. Specifically, Councilmember McKeon requested that the Community Development Department, CMFA, and Catalyst provide a comprehensive report related to fiscal impacts and requested answers to other questions (see Attachment 2). Financial Impact: Not applicable. As requested by the City Council, financial impact information of the Middle-Income Housing Program approved on July 20, 2021 is described in this report. Recommended Action: Receive and file. Alternative Action(s): None. Analysis: City of Huntington Beach Printed on 7/13/2023Page 1 of 7 powered by Legistar™317 File #:23-584 MEETING DATE:7/18/2023 A.BACKGROUND As described in the July 21, 2021 staff report (Attachment 1), middle-income housing is designed for persons earning between 80 percent and 120 percent of area median income (AMI). This segment is considered the “missing middle” between lower income (≤80% AMI) affordable housing and market- rate (>120% AMI) housing since no funding sources exist for this population. CMFA, working with Catalyst as the project sponsor (on behalf of CMFA as the asset manager), acquired the Properties in August 2021 through the issuance of tax-exempt “essential government bonds.” As the bond issuer, CMFA oversaw the underwriting of the bonds prior to issuance and actively manages the performance of the project sponsor Catalyst during the life of the bonds. The operating rent generated at the Properties will pay the debt service on the tax-exempt bonds that were issued in August 2021; therefore, the City does not pay the debt service payments on the tax-exempt bonds. The July 2021 staff report (Attachment 1) referenced a 30 year bond maturity; however, at the time, the underwriting process was underway but not completed until after City Council approval. Upon completion of underwriting and based on the market conditions at the time of sale of the bonds, both projects required a 35 year maturity in the Limited Offering Memorandums; therefore, this staff report will utilize the 35 year bond maturity date for calculations related to foregone property tax as well as for real estate valuation purpose. As a public agency and a joint powers authority (JPA), CFMA is a tax-exempt entity that is not required to pay property taxes. This property tax abatement, coupled with the tax-exempt financing, provides a significant advantage in terms of cash flow, which allows CFMA to compete with market- rate buyers, and enables CFMA to make the units available to low and moderate income households. The typical split of units is one-third at 80 percent AMI, one-third at 100 percent AMI, and one-third at 120 percent AMI. It is important to note that a non-government entity could acquire a property and restrict units to 80 percent AMI, and those units would qualify for the “welfare exemption” and would not have to pay property taxes on any units at 80 percent AMI or less. As described below, by providing middle-income units, the City will forego current and future property tax revenues with the ability to sell the Properties in 15-35 years with all net proceeds distributed to the City. The Elan and Breakwater Apartments (“Properties”) consist of 674 total rental units, of which, 647 have been or will be converted from market rate units to middle-income units (ranging from 80% to 120% of area median income). (Note: the July 2021 City Council report indicated 676 total units at Breakwater and Elan Apartments; however, the planned conversion of existing non-residential space into two additional units at Breakwater was later determined not to be a viable option). The balance of 27 units that are located at Elan Apartments are already restricted to moderate income (110% of area median income) per the City’s Inclusionary Zoning Ordinance that was applied at the time of entitlement. As indicated in the July 2021 staff report, the acquisition of the Properties resulted in the loss of 2022 property tax and future property tax revenues to the City’s General Fund. The July 2021 analysis was based on an average 14 percent City share of the 1 percent property tax levied on the assessed value of the properties and did not include the voter approved 1.5 percent supplemental public safety employee retirement levy. When you add the public safety retirement levy the effective rate is 15.5 percent. Further, the July 2021 analysis was based on pre-acquisition assessed valuation (additional discussion on this topic is found later in this staff report under response to Question 5). As described later in this report, 2022 property taxes for the Properties were estimated for year 1 at $378,069. To City of Huntington Beach Printed on 7/13/2023Page 2 of 7 powered by Legistar™318 File #:23-584 MEETING DATE:7/18/2023 later in this report, 2022 property taxes for the Properties were estimated for year 1 at $378,069. To determine the loss of property taxes over a 35-year period (full term of the outstanding bonds), staff increased the property taxes by two percent annually, which is the maximum increase allotted for without a sales transfer or improvements to the property that trigger a reassessment. For a 35-year period, the City would forego an estimated total of $20,926,549 in property tax revenue. Based upon providing 647 middle-income units, the cost to create these affordable housing units would be approximately $32,344 per unit ($20,926,549 divided by 647 units). Comparatively, a traditional affordable housing project, while usually at the lower income level, includes $70,000-90,000 of subsidy per unit and qualifies for the welfare exemption and are exempt from property taxes. Most of the funding available to subsidize affordable housing is for lower income housing leaving little or no options to preserve workforce (i.e. moderate income) housing. The Program provides an ability to preserve attainable housing costs by preventing a market rate investor from purchasing the property and increasing the rents and instead restricts the rents preserving this “middle income” housing stock. Beyond the public benefit of creating the restricted middle-income units, the Properties also represent an investment opportunity with potential long term financial benefits for the City in the form of public equity. Under the recorded Public Benefit Agreement, the City, at its sole discretion, may force a sale of the Properties between year 15 and year 35, and the City would receive the net sale proceeds. Since the Properties are financed through the issuance of tax-exempt bonds and there are no equity partners, all excess sale proceeds after payoff of the bonds go the City. Over a 35-year period, the Properties could realize $595,611,279 in valuation at the end of year 35 (assuming a conservative annual appreciation of 1.8%). The City could realize significant value in owning major real estate assets that could be sold to market-rate buyers, thereby maximizing value to the City. Alternatively, the assets could be sold to affordable housing developers to be rehabilitated with new, more deeply restricted affordable housing covenants recorded on the Properties. This decision could be made in the future depending upon the City’s needs and policy priorities. The residents of these Properties interface with Catalyst, as the project sponsor or Catalyst’s designated property management firm. Annual rent increases are capped at no more than 4 percent, which is less than the rent limits under AB1482, the adopted State tenant protection legislation. It is important to note that existing tenants are not displaced regardless of household income, as the conversion of market rate units to middle-income units occurs over a few years as leases expire and current tenants move on to other housing opportunities. B. RESPONSES TO SPECIFIC QUESTIONS REGARDING MIDDLE-INCOME HOUSING PROGRAM On May 16, 2023, Councilmember McKeon brought forward a list of questions that he and the City Council wanted staff to address regarding the status/update of the Middle-Income Housing Program. 1. How many of the 649 housing units are occupied?There are a combined 674 units at Breakwater and Elan. These properties have a blended occupancy rate of 95 percent. At Breakwater, 359 of 380 available units (94%) are occupied, with an additional 20 units under renovation and not available for immediate occupancy. At Elan, 265 of the 274 units (97%) are occupied. A five percent vacancy rate is typical in multi-family housing. Additional information regarding occupancy by unit type can be found in Attachment 3.All of the currently vacant units (30 total; 21 units at Breakwater and nine units at Elan) are currently being marketed to City of Huntington Beach Printed on 7/13/2023Page 3 of 7 powered by Legistar™319 File #:23-584 MEETING DATE:7/18/2023 units (30 total; 21 units at Breakwater and nine units at Elan) are currently being marketed to only low and moderate income households per the Program restrictions. 2. How many have been remodeled as planned and at what cost?At Breakwater, 35 units have been fully renovated, with five (5) additional units scheduled to be delivered in July. Each unit renovation includes new flooring, appliances, cabinets, countertops, paint, and additional improvements. The average renovation cost per unit is $43,875. At Elan, while the unit interiors were not in need of significant renovation, all interior hallways have received fresh paint and new flooring. Over the next several weeks, the exterior of the property will be painted, the pool will be resurfaced, and the clubhouse will be renovated. 3. How many of the units are leased to persons earning 80%-120% of the Area Median Income, as required?Breakwater and Elan have achieved a blended program qualification rate of 57 percent since acquisition. At Breakwater, 232 of 400 units (58%) have been leased to program-qualifying households. At Elan, 153 of 274 units (56%) have been leased to program-qualifying households. On average, 16 units per month have converted. As noted by CFMA and Catalyst, a full transition to program-qualifying households is limited by two primary factors: ·The Regulatory Agreements recorded against the properties carry explicit non- displacement clauses. ·COVID-related conditions and tenant protections lowered turnover compared to industry norms, including protections that allowed all existing residents to transition to month-to-month leases without the additional fees that multifamily owners typically charge to incentivize residents to execute new 12-month leases. As such, while every effort is made to program-qualify households, the collective balance of units (43%) is rented to residents who are non-program qualifying, which may be due to: being over-income, affirmatively choosing to not provide information needed to qualify, or continuing on a month-to-month basis. Additional information on program qualification progress, including breakouts by AMI level and unit type, can be found in Attachment 3. 4. What are the average monthly rents?Breakwater has an average monthly rent of $2,324 for program-qualified households, representing a 24 percent discount to current market rents. Elan has an average monthly rent of $2,307 for program-qualified households, representing a 23 percent discount to current market rents (see Attachment 3 for market rents). Total rental discounts amount to nearly $3.3 million annually. Average in-place rental discounts are anticipated to further increase as additional units are leased to program-qualifying households. Additional information on average monthly rent by property, including breakdown by AMI level, can be found in Attachment 3. 5. To fund the Middle Income Housing Program, the City has to forgo future property tax revenues for up to a 30-year period. How much in property tax did the City forego in 2022 and what is the estimated amount for 2023 and over the next 30 years? City of Huntington Beach Printed on 7/13/2023Page 4 of 7 powered by Legistar™320 File #:23-584 MEETING DATE:7/18/2023 This question will be answered based on a 35 year bond maturity instead of a 30 year bond maturity, as previously noted in this staff report. Further, the 2021 staff report analyzed the foregone property tax based on the assessed value pre-acquisition and the property taxes that the City was collecting at the time. It is uncertain whether these assets would have transferred without the Program; therefore, the analysis was based on the pre-acquisition assessed value. With that being said, following the change in ownership, Breakwater’s assessed value increased by nearly $46 million from $139 million to $185 million (33%). Elan’s assessed value increased nearly $9 million from $125 million to $134 million (7%). As mentioned earlier in this staff report, the 2021 analysis was based on an average 14 percent of the 1% property tax levied on the assessed value of the properties, and did not include the voter approved 1.5 percent supplemental public safety employee retirement levy. When you add the retirement levy it’s an effective rate of 15.5 percent. Due to these dynamic variables, providing a static response to this question is difficult. The following narrative assumes the same methodology used in 2021 (pre-acquisition value with a 2% annual property tax inflation, an average 14% of the property tax levy, and 1.5% public safety employee retirement levy) except that it includes a 35 year bond maturity date instead of a 30 year bond maturity date. Below the narrative response is a chart that shows and compares the foregone property tax utilizing the average 14 percent share of the levy, a scenario utilizing the average 14 percent levy plus the supplemental retirement levy 1.5 percent (15.5% total), and a scenario utilizing the average 14 percent levy plus the supplemental retirement levy and the post-acquisition assessed valuation. Breakwater - It is estimated that the City would have collected $220,413 in property taxes from this asset in 2022, based on the 2021 pre-acquisition tax valuation and including the public safety employee retirement levy. Assuming 2 percent annual property tax inflation, it is estimated that the City will forgo $224,822 in property taxes from this asset in 2023. Over a 35 -year period, which reflects the full term of the outstanding bonds, the City’s foregone property taxes related to this asset are estimated to be $11,019,517, should the property remain JPA owned. This amount represents approximately 3 percent of the anticipated value of the property after the bonds are matured in 35 years ($345,417,199), as outlined in Breakwater’s Public Benefit Agreement. If the City sells the property, this is the anticipated amount the City would receive. Elan - It is estimated that the City would have collected $198,163 in property taxes from this asset in 2022, based on the 2021 pre-acquisition tax valuation and including the public safety employee retirement levy. Assuming 2 percent annual property tax inflation, it is estimated the City will forgo $202,127 in property taxes from this asset in 2023. Over a 35-year period, which reflects the full term of the outstanding bonds, the City’s foregone property taxes related to this asset are estimated to be $9,907,032, should the property remain JPA owned. This amount represents approximately 4 percent of the anticipated value of the property after the bonds are matured in 35 years ($250,194,074), as outlined in its Elan’s Public Benefit Agreement. If the City sells the property, this is the anticipated amount the City would receive. Combined,Elan and Breakwater would have generated $20,926,549 in property tax revenue over a 35-year period. It is important that the above figures are evaluated with the following City of Huntington Beach Printed on 7/13/2023Page 5 of 7 powered by Legistar™321 File #:23-584 MEETING DATE:7/18/2023 context: ·These properties will only be exempted from property taxes so long as they are JPA or government owned. There is no certainty that this will be the case for the next 35 years. The City may elect to trigger its Public Benefit Agreement as soon as 2036, at which time it may elect for the assets to be sold to for-profit owners that pay full property taxes. ·In addition to the long-term economics generated for the City, the rental subsidies alone range from 6 to 8.5 times what the City would have collected in property tax revenues depending on pre or post acquisition assessment values. ·Existing non-profit affordable housing providers within Huntington Beach (including for-profit owners with minority (1%) non-profit “partners”) are also receiving full property tax exemptions, without providing any long-term economic benefits to the City. Comparison of Foregone Property Tax Estimates 2021 RCA July 2023 Analysis: 2020-21 Pre- Acquisition Tax Valuation with Employee Retirement Levy July 2023 Analysis: 2022-23 Post-Acquisition Tax Valuation with Employee Retirement Levy Breakwater 195,179 195,179 259,000 Elan 175,476 175,476 187,600 Retirement Levy 0 39,713 47,850 TOTAL 370,655 410,368 494,450 6. What are the property management fees paid every year and to whom are they paid? Breakwater - Over the past twelve months, Greystar was paid $219,000 in property management fees, amounting to 2 percent of collected revenues. Elan - Over the past twelve months, Greystar was paid $187,000 in property management fees, amounting to 2 percent of collected revenues. 7. What are the annual maintenance and repair fees? Breakwater - Over the past twelve months, the property incurred $289,600 in maintenance and repair fees, amounting to $724/unit. Elan - Over the past twelve months, the property incurred $156,000 in maintenance and repair fees, amounting to $569/unit. 8. How many of the retail shops on the first level of Elan are leased?At present none of City of Huntington Beach Printed on 7/13/2023Page 6 of 7 powered by Legistar™322 File #:23-584 MEETING DATE:7/18/2023 8. How many of the retail shops on the first level of Elan are leased?At present none of the retail shops at Elan are leased, as disclosed publicly in the Limited Offering Memorandum (LOM). This trend predates acquisition, with the remaining tenants terminating their leases within months of property closing. Retail vacancy challenges spurred by COVID-19 continue to impact Huntington Beach, where at least 74 retail spaces remain vacant in the sub-market. In addition to these market challenges, Elan faces site-specific challenges such as parking and frontage attributes, which also impact leasing. CFMA and Catalyst are addressing these concerns, including installing attractive window wraps to improve the street-side look and feel.In addition, they recently hired a new third- party retail leasing broker with a strong track record of success in Orange County. Environmental Status: Not applicable. Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. July 20, 2021 Request for City Council Action Narrative regarding Middle-Income Housing 2. May 16, 2023 H Item Report (McKeon) requesting update on Middle-Income Housing Program 3. Elan and Breakwater Apartments: Program Qualifications Reports 4. PowerPoint Presentation to City Council for July 18, 2023 meeting City of Huntington Beach Printed on 7/13/2023Page 7 of 7 powered by Legistar™323 City of Huntington Beach File #:21-531 MEETING DATE:7/20/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Ursula Luna-Reynosa, Director of Community Development Subject: Approve Middle Income Housing Program by adopting Resolution No. 2021-43 and Resolution No. 2021-44; Authorize the City Manager to enter into Public Benefit Agreements and execute Middle-Income Housing Program agreements, and determine that these actions are not subject to the California Environmental Quality Act Statement of Issue: City Council approval is requested for the following items related to the Middle Income Housing Program, in order to enable the acquisition and conversion of two market-rate apartment complexes into workforce housing within the City of Huntington Beach: 1. Resolutions approving, authorizing, and directing execution of joint exercise of powers agreements supporting the issuance of bonds for the production, preservation, and protection of essential middle-income rental housing; 2. Joint Exercise of Powers Agreements; 3. Public Benefit Agreements, which may result in the City receiving surplus revenue from the future sale of the projects; and 4. Regulatory Agreements and Declaration of Restrictive Covenants. Financial Impact: If approved, the Middle Income Housing Program would result in the creation of 649 middle income housing units at the two current market-rate apartment complexes in question. Based on the terms of the program, the identified units would be created at an average cost of $23,169 per door, which is an efficient and cost-effective way of establishing affordable housing units. Based on current market conditions, the estimated cost of acquiring and rehabilitating 649 units and income restricting them at “middle income” levels would be between $56,000 and $85,000 per door, City of Huntington Beach Printed on 8/8/2021Page 1 of 7 powered by Legistar™324 File #:21-531 MEETING DATE:7/20/2021 depending on the level of income targeting. For further comparative purposes, the City’s recent experience with an affordable housing project being developed by Jamboree Housing for permanent supportive units resulted in an approximate cost of $70,000 per door cost, and the City of Santa Ana’s average subsidy is approximately $90,000 per door for similarly restricted units. To fund the Middle Income Housing Program, the City would have to forgo future property tax revenues for up to a 30 year period, with the first year amount estimated at $370,655. Assuming a 2% increase in property values annually, the average annual property tax subsidy over a 30 year period would be $501,225. However, of note, between Year 15 and Year 30 (the end of the life of the bonds), the City, at its sole discretion, may force a sale of the middle-income rental housing projects and the City would receive the sale proceeds. Over a 30-year period, the City could realize $647,620,251 in proceeds at Year 30, following payoff of debt. Recommended Action: A) Adopt Resolution Nos. 2021-43 and 2021-44 approving, authorizing, and directing execution of joint exercise of powers agreements relating to the CMFA Special Finance Agency VII and VIII (collectively the “Agency”) supporting the Agency’s issuance of bonds for the production, preservation, and protection of essential middle-income rental housing (“Middle-Income Housing Program”); and, B) Authorize and direct the City Manager to enter into Public Benefit Agreements, substantially in the form attached, with the Agency, which may result in the City receiving surplus revenue from the future sale of the Projects; and, C) Authorize and direct the City Manager to execute related documents and take any additional actions that may be required to implement the Middle-Income Housing Program; and, D) Determine that this action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060(c)(3), because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, and it is not a "project" pursuant to Section 15378(b)(5) of the State CEQA Guidelines. Alternative Action(s): Do not adopt the resolutions, enter into the Public Benefit Agreements, or execute related documents, or take any additional actions that may be required to implement the Middle-Income Housing Program. Analysis: A.BACKGROUND City Council held a work study session on February 16, 2021, to evaluate a middle income workforce housing program as a means of achieving the public policy objective to create a continuum of affordable housing. Middle income housing is designed for persons earning 80% and up to 120% of area median income (AMI). This segment is considered the “missing middle” between lower income (≤80% AMI) affordable housing and market-rate (>120% AMI) housing since no funding sources exist for this housing population. At their January Strategic Planning Session, the City Council expressed City of Huntington Beach Printed on 8/8/2021Page 2 of 7 powered by Legistar™325 File #:21-531 MEETING DATE:7/20/2021 the importance of providing middle income workforce housing as a means to transition people out of lower-income affordable housing. Currently, one-third of the City’s affordable housing portfolio, or 660 units, are moderate income units between 110% - 120% AMI. Of the 660 units, half are rental units and half are for-sale units. California Community Housing Agency (CalCHA), working with Catalyst as the project sponsor, was the first Joint Powers Authority (JPA) to acquire a residential apartment project with tax-exempt “essential government bonds”. They have since closed on nine transactions. There are other JPAs and other project sponsors doing similar transactions. As a public agency, the JPA is a tax-exempt entity that is not required to pay property taxes. This property tax abatement, coupled with the tax- exempt financing, provides a significant advantage in terms of cash flow, which allows the JPA to compete with market-rate buyers, and enables the JPA to make the units available to low and moderate income households. The typical split of units is one third at 80% AMI, one third at 100% AMI, and one third at 120% AMI. It is important to note that a non-government entity could acquire a property and restrict units to 80% AMI, and those units would qualify for the “welfare exemption” and would not have to pay property taxes on any units at 80% AMI or less. The project sponsor acts on behalf of the JPA as the asset manager. For all intents and purposes, the residents of these projects interface with the project sponsor or their designated property management firm. Annual rent increases would be capped at no more than 4%, which is less than the rent limits under AB1482, the recently adopted State tenant protection legislation. It is important to note, existing tenants are not displaced, regardless of household income, as the conversion of market-rate units to middle income units occurs over a few years as leases expire and current tenants move on to other housing opportunities. The JPA issues the tax exempt governmental bonds. As the bond issuer, the JPA will oversee the underwriting of the bonds prior to issuance and the performance of the project sponsor during the life of the bonds. Opportunity to Acquire Two Existing Apartment Complexes Catalyst has approached the City with an opportunity to acquire two existing apartment complexes in Huntington Beach and convert them into “workforce housing” units, as market-rate leases come due. Elan and Breakwater are the two apartment complexes (the “Properties”), where the rents range from $1,984 - $3,255 per month. Collectively, between the Properties, there are a total of 676 dwelling units that generate a combined $2,647,536 annually of basic levy property tax revenue. The City’s annual 14% share is $370,655. Based upon the current valuation (2020-21 Secured Property Tax) and a two percent annual increase in valuation, the City would have reduced property tax revenue of an estimated $6,409,893 over 15 years, and $15,036,763 over 30 years for the Projects. Elan is located at 18504 Beach Boulevard, Huntington Beach and is comprised of a total of 274 units (27 units are restricted at 110% AMI per the City’s Inclusionary Zoning Ordinance). This project was completed in 2015 and generates $1,253,400 annually of basic levy property tax revenue. The City receives 14% which equates to $175,476 annually. The market-rate units rent in the range of $1,984 - $3,034 with a current overall vacancy rate of 5.11%. This property last sold in July 2016 for $131,000,000. Catalyst has negotiated a sales price of $136,000,000. Breakwater is located at 16761 Viewpoint Lane, Huntington Beach and is comprised of a total of 402 City of Huntington Beach Printed on 8/8/2021Page 3 of 7 powered by Legistar™326 File #:21-531 MEETING DATE:7/20/2021 units (all market rate). This project was completed in 1972 and generates $1,394,136 annually of basic levy property tax revenue. The City’s annual 14% share is $195,179. The rents range from $2,319 - $3,255 with a current vacancy rate of 5.77%. This property last sold in December 2017 for $134,000,000. Catalyst has negotiated a sales price of $185,000,000. Since the 2017 sale, the current owner has invested significantly in renovations and capital improvements. California Municipal Finance Authority California Municipal Finance Authority (CMFA) is the City’s preferred JPA whose track record and fee structure are appealing. CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. CMFA is the largest issuer in the State for all conduit bond financing. They have a 16 year track record with zero housing defaults on over 1,000 transactions of which 600 are affordable housing projects. To date, over 325 municipalities, including the City of Huntington Beach,have become members of CMFA.CMFA is the only financing authority which has granted over $25M dollars directly to local governments and 501c3 nonprofit organizations during the past sixteen years. CMFA will grant 25% of the issuance fees to the general fund of the City. Such grant may be used for any lawful purpose of the City. CMFA will donate 25% of the issuance fees to a charitable organization of the City’s choice within the host municipality for each transaction. Execution of the Joint Exercise of Powers Agreement In order for the Agencies to have the authority to serve as the issuer of the bonds for the Properties, it is necessary for the City of Huntington Beach to become a member of the Agency (CMFA Special Finance Agency VII and VIII). The Joint Exercise of Powers Agreement provides that the Agency is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the Agency do not constitute debts, liabilities or obligations of the members executing such agreement. The bonds to be issued by the Agency for the Properties will be the sole responsibility of the borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for Properties or the repayment of the bonds for the financing of the Properties. All financing documents with respect to the issuance of bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California, but are to be paid for solely from funds provided by the borrower. There are no costs associated with membership in the Agency and the City will in no way become exposed to any financial liability by reason of its membership in the Agency. In addition, participation by the City in the Agency will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. B.ANALYSIS The Properties require a City subsidy in the form of forgone property taxes for the duration of the essential governmental bonds over a thirty-year period. Due to the required subsidy, City staff, with the support of the National Development Council (NDC) who serves as the City’s technical advisor, has independently evaluated the public benefit of the Middle Income Housing Program as it relates to the Properties as well as preliminary project feasibility analysis. City of Huntington Beach Printed on 8/8/2021Page 4 of 7 powered by Legistar™327 File #:21-531 MEETING DATE:7/20/2021 Public Benefit To evaluate the public benefit, staff has reviewed whether the amount of subsidy is appropriate for the level of affordability in terms of the proposed “cost per door” for each unit. In the City’s recent experience with an affordable housing project being developed by Jamboree Housing, the City subsidy represented a cost of approximately $70,000 per door for permanent supportive housing (33 units at 30% AMI, 9 units at 50% AMI, and one manager’s unit). The City of Santa Ana’s average subsidy is approximately $90,000 per door for similarly restricted units. The city subsidy is leveraged with other funding sources so the total subsidy per door is much greater than the city subsidy alone. Some of the units are currently rent restricted at 110% AMI with 55 year covenants. Excluding the restricted units there are 649 market-rate units within the Properties. The City currently receives approximately $370,655 annually in property taxes for the Properties. As previously stated, the City will forego approximately $15,036,763 in property taxes over 30 years ($23,169 per door) to create 649 middle income rent restricted units. These figures assume a 2% annual increase in property taxes and represent the City’s 14% share of the base tax levy. Further, these numbers don’t factor in a net present value calculation and simply assume the City has access to 100% of the foregone property tax revenue today, which clearly is not the case. If a 3% net present value calculation is applied, the cost per door is approximately $7,000 per door less. The above per door subsidy calculations are not a compatible comparison as the per door examples are for new construction and extremely low and very low income levels. If an affordable housing developer were to approach the City with a proposal to acquire and rehabilitate 649 units and income restrict them at “middle income” rents, staff expects that the requested subsidy, assuming that the City is the sole funding source, would be between $56,000 and $85,000 per door depending on the level of income targeting. This subsidy is calculated by subtracting an average, blended restricted rent from the average, blended market rent to determine the revenue gap (due to the artificial restriction on rents) on the 649 units over 30 years. As an example, if the blended rental rate was $200 less than the market-rate rent over 30 years, this would amount to a subsidy of $72,000 per unit. Therefore, this range of $56,000 to $85,000 is significantly higher than the cost per door utilizing the essential government bonds program. Further, the City would likely be reluctant to utilize restricted affordable housing funds on moderate income units and would prefer to use such funds on more deeply restricted units, such as very low and low income units. Staff’s conclusion is that this essential government bond program to provide middle income housing units is a cost effective way to create such housing units. While staff is overall supportive of this program should the City Council desire to further middle income or workforce housing, it should be noted that the foregone property tax revenue is unrestricted, General Fund revenue and can fund public safety services as well as parks and other infrastructure needs. It is a policy decision to prioritize the public benefits that can be achieved with this money. Further, while there is pending legislation, as of today, under State Law, these units cannot count toward the City’s Regional Housing Needs Allocation (RHNA) for the 2021-2029 cycle. If Assembly Bill 787 were to pass, the bill would authorize the City to include qualifying converted units in its annual progress report and reducing the City’s share of regional housing need for the income category of the converted units on a unit for unit basis. The bill would apply only to converted units that meet specified requirements, including that the rent for the unit prior to conversion was not affordable to very low, low-, or moderate-income households and the initial post City of Huntington Beach Printed on 8/8/2021Page 5 of 7 powered by Legistar™328 File #:21-531 MEETING DATE:7/20/2021 conversion rent for the unit is at least 10% less than the average monthly rent charged over the 12 months prior to conversion. Based on the current draft legislation, approximately 232 of the units would meet the specified requirements. Public Equity Beyond the public benefit of creating the restricted middle income units, the Properties also represent an investment opportunity with long term financial benefits for the City in the form of public equity. Under a recorded Public Benefit Agreement, the City, at its sole discretion, may force a sale of the Properties between year 15 and year 30 (the end of the life) of the bonds, and the City would receive the net sale proceeds. Since the Properties are financed through the issuance of tax-exempt bonds and there are no equity partners, all excess sale proceeds after payoff of the bonds go the City. Over a 30-year period the Properties could realize $647,620,251 in valuation at the end of year 30 (assuming an annual appreciation of 1.8%). The City could realize significant value in owning major real estate assets that could be sold to market-rate buyers, thereby maximizing value to the City. Or the assets could be sold to affordable housing developers to be rehabilitated with new, more deeply restricted affordable housing covenants recorded on the Properties. This decision could be made in the future depending upon the City’s needs and policy priorities. From an investment perspective, if the City were to invest the foregone property taxes in the Local Agency Investment Fund (LAIF) at 3%, the average annual rate of return over the past 30 years, the City’s investment would grow to $18,163,088 over 30 years. The average rate of appreciation for real estate in California is approximately 6% annually. If the City were to invest the foregone property taxes in real estate instead of LAIF, and assume a 6% annual rate of return, the City’s investment would grow to $31,061,511 (a difference of almost $13 million). Investing the foregone property taxes in real property will create significant public equity that can help secure the financial stability of the City of Huntington Beach. Environmental Status: Pursuant to Sections 15060(c)(2) and 15060(c)(3) of the California Environmental Quality Act (CEQA) guidelines, CEQA does not apply to this action because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and it is not a “project” pursuant to Section 15378(b)(5) of the State CEQA Guidelines. Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1. Resolution No. 2021-43 for The Elan 2. Resolution No. 2021-44 for The Breakwater Apartments 3. Public Benefit Agreement by and between CMFA Special Finance Agency VII and the City of Huntington Beach relating to the issuance of Essential Housing Revenue Bonds for The Breakwater Apartments 4. Public Benefit Agreement by and between CMFA Special Finance Agency VIII and the City of Huntington Beach relating to the issuance of Essential Housing Revenue Bonds for The Elan 5. Joint Exercise of Powers Agreement relating to the CMFA Special Finance Agency VIII for The City of Huntington Beach Printed on 8/8/2021Page 6 of 7 powered by Legistar™329 File #:21-531 MEETING DATE:7/20/2021 Elan 6. Joint Exercise of Powers Agreement relating to the CMFA Special Finance Agency VII for The Breakwater Apartments 7. Regulatory Agreement and Declaration of Restrictive Covenants by and between CMFA Special Finance Agency VIII and Wilmington Trust, National Association, as Trustee relating to The Elan 8. Regulatory Agreement and Declaration of Restrictive Covenants by and between CMFA Special Finance Agency VII and Wilmington Trust, National Association, as Trustee relating to The Breakwater Apartments City of Huntington Beach Printed on 8/8/2021Page 7 of 7 powered by Legistar™330 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: CITY COUNCIL FROM: CASEY MCKEON, COUNCIL MEMBER DATE: MAY 16, 2023 SUBJECT: FISCAL AND OPERATIONS UPDATE ON THE CITY’S MIDDLE INCOME HOUSING PROGRAM On July 20, 2021, the previous City Council voted to become a member of a Joint Power Authority (the “JPA”) with the California Municipal Finance Authority (CMFA), to enter into a series of Public Benefit Agreements, and to approve the issuance of revenue bonds by the JPA to facilitate the City’s Middle Income Housing Program. The bond proceeds were used to enable the JPA to acquire and convert two private properties, the Breakwater Apartments and the Elan Apartments, into public workforce housing, which is managed and operated by project sponsor, Catalyst. This was a sizable project and quite a substantial commitment by the City. This City Council should have an opportunity to review what has been done. The July 2021 City Council action can be found on the City’s website. RECOMMENDED ACTION Direct the City Manager and the Community Development Department to coordinate with Catalyst and CMFA to present a comprehensive report at a City Council Meeting in July or sooner of the Financial Impact section mentioned in the July 2021 City Council Action. The report should include, but not be limited to, the following important details:  How many of the 649 housing units are occupied?  How many have been remodeled as planned and at what cost?  How many of the units are leased to persons earning 80%-120% of the Area Median Income, as required?  What are the average monthly rents?  To fund the Middle Income Housing Program, the City has to forgo future property tax revenues for up to a 30 year period. How much in property tax did the City forego in 2022 and what is the estimated amount for 2023 and over the next 30 years?  What are the property management fees paid every year and to whom are they paid?  What are the annual maintenance and repair fees?  How many of the retail shops on the first level of Elan are leased? STRATEGIC PLAN GOAL: Economic Development & Housing 331 Attachment 3: Program Qualifications Reports 6/30/2023 * Units subject separate regulatory agreement with the City ofHuntington Beach 6/30/2023 Unit Type Unit Count Studio 26 1BR 130 2BR 118 Average Rents Discount/Market Monthly Discount Annual Discount Unit Type Occupied Studio 26 1BR 125 2BR 114 Average Rents DJscount/Market Monthly Discount Annual Discount Stabilized Requirement Qualified Households Affords bility Progress Elan Asking Rents Market Rent $2,345 $2,814 $3,357 $3,003 NA NA NA 80% AMI $1,890 $2/165 $2,440 $2,257 -25% $746 $8,953 Current Rents Non-Program $2,129 $2,383 $2/813 $2,551 -15% $452 $5,424 NA NA NA 80% AMI $1,858 $2,137 $2,456 $2,243 -25% $760 $9,124 110 85 77% 110% AMI* $2,234 $2,554 $2,858 $2,655 -12% $349 $4,187 110% AMI* $1,942 $2,069 $2/268 $2/153 -28% $850 $10,205 27 23 85% 120% AMI $2,250 $2,699 $3,213 $2,878 -4% $125 $1/504 120% AMI $2,234 $2,346 $2,838 $2/505 -17% $498 $5/980 137 45 33% Unit Type Unit Count 2BR 360 3BR 40 Average Rents DJscount/Market Monthly Discount Annual Discount Unit Type Occupied 2BR 320 3BR 39 Average Rents Discount/Market Monthly Discount Annual Discount Stabilized Requirement Qualified Households Affordability Progress Breakwater Asking Rents Market Rent $3,016 $3,291 $3,043 NA NA NA 80% AMI $2/257 $2,600 $2,292 -25% $752 $9,022 Current Rents Non-Program $2,304 $2,840 $2,363 -22% $680 $8,162 NA NA NA 80% AMI $2,206 $2,719 $2,281 -25% $762 $9,146 134 136 101% 100% AMI $2,315 $2,800 $2,364 -22% $680 $8,159 100% AMI $2,309 $2,860 $2,321 -24% $723 $8,672 133 48 36% 120% AMI $2,395 $2,900 $2,446 -20% $598 $7,175 120% AMI $2,411 $2,881 $2,450 -19% $593 $7,116 133 48 36% 332 Middle Income Housing Program Update July 18, 2023 333 January 2021 Strategic Planning Session Homeless Shelter Permanent Supportive Housing Low Income Housing Workforce Housing < 30% AMI < 60% AMI < 80% AMI ≥ 80% AMI < 120% AMI 334 What is the Middle Income Housing Program? Low Cost of Capital Property Tax Abatement No Equity Investor Discounted Rents 335 Public Benefit Valuation COST: Lost Property Tax Revenue BENEFIT: Preservation of Workforce “Middle Income” Housing Stock 336 Opportunity to Create Public Equity Higher Rate of Return Real Property Asset Excess Sales Proceeds to City 337 Partners CMFA (Joint Powers Authority) Catalyst (Asset Manager) Orrick (Bond Counsel) Ben Barker Financial Advisor Jordan Moss Founder Allison Arnold Partnerships Justin Cooper Partner 338 ELAN BREAKWATER 339 QUESTIONS? 340 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-622 MEETING DATE:7/18/2023 Subject: Submitted by Councilmember Bolton - Employee Recruitment and Retention Efforts Recommended Action: Request the City Manager and Human Resources Departments, with advice from the City Attorney’s Office, to present the following information at the October 3, 2023 Study Session (or) Council Briefings/Memos: 1. An analysis of fiscal, legal, and operational impacts (both costs and benefits) of employee recruitment/retention benefits and other sign-on incentives; and 2. Recommended approach and options (if any) to achieving the goal, including the operational steps and timeline, staffing and fiscal resources, and community engagement required. Attachment(s): 1. Memo City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™341 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: CITY COUNCIL FROM: RHONDA M. BOLTON, CITY COUNCIL MEMBER DATE: JULY 18, 2023 SUBJECT: POTENTIAL ADDITIONAL TOOLS TO ENHANCE RECRUITMENT AND RETENTION EFFORTS FOR PUBLIC EMPLOYEES ISSUE STATEMENT The public sector is currently going through a hiring crisis and unprecedented employee turnover. This is an issue affecting Huntington Beach and cities nationwide. According to NEOGOV’s 2023 Report on the Top 5 Public Sector HR Trends, “recruiting over the last year has been challenging, with the public sector facing a record breaking hiring crisis. In 2022 compared to 2021, applications per job were down 56%.” It is critical to our local public safety to ensure that we have a full complement of staff in our police department. It is also ideal to have employees closer to the city rather than further away proximity means they are more readily available in cases of emergency, and facilitates their health/safety because they do not have long commutes to get to/from work. We should also be mindful of the cost of losing employees. According to the Society of Human Resources Management, each employee departure costs about one third of that person’s annual pay. Recognizing the importance to the community of public safety, the City Council recently approved a compensation package for the Police Department designed make Huntington Beach competitive in attracting and retaining top-notch candidates. The City should also consider whether there are other means to attract and retain the most desirable candidates and make our city an employer of choice. This research should consider: • What benefits would be appealing to recruits and current employees, such as flexible schedules, wellness programs, or other fringe benefits; and • How to structure incentives/programs with no, or minimal, impact on City’s general fund (such as grant funding); and • Determine the best way to incentivize without making the assistance taxable and/or PERS-able to the employee; and • Consider any implications of such a program on collective bargaining obligations; and • Identify metrics to judge success, such as measuring differences in employee turnover before and after program implementation. 342 RECOMMENDED ACTION Request the City Manager and Human Resources Departments, with advice from the City Attorney’s Office, to present the following information at the October 3, 2023 Study Session (or) Council Briefings/Memos: 1. An analysis of fiscal, legal, and operational impacts (both costs and benefits) of employee recruitment/retention benefits and other sign-on incentives; and 2. Recommended approach and options (if any) to achieving the goal, including the operational steps and timeline, staffing and fiscal resources, and community engagement required. STRATEGIC PLAN GOAL Fiscal Sustainability 343 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-633 MEETING DATE:7/18/2023 Subject: Submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon - Proposed Charter Amendment - City of Huntington Beach Real Property - Property Tax Recommended Action: 1. Consider proposing an amendment to the City Charter that would restrict City Councils from engaging in real property transactions that would require the City of Huntington Beach to forgo regularly collected property taxes on investment property, unless those purchases are approved by the voters of the City of Huntington Beach. Exceptions to this rule would/may include real property transactions that are important for acquisition of private property for infrastructure. Request the Charter Review Ad Hoc Committee propose parameters, language, and timing of the Charter amendment measure for Council consideration. 2. Direct the City Manager to come back with a system for the City to have a Real Property Leasing, Purchasing, and Disposition Policy and a centralized Real Property function. Attachment(s): 1. McKeon -Proposed Charter Amendment - City of Huntington Beach Real Property - Property Tax City of Huntington Beach Printed on 7/13/2023Page 1 of 1 powered by Legistar™344   CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT    TO:  CITY COUNCIL    FROM:  Mayor Pro Tem Gracey Van Der Mark and Councilmember Casey McKeon      DATE:  July 18, 2023    SUBJECT: Proposed Charter Amendment – City of Huntington Beach Real Property –  Property Tax      ISSUE STATEMENT  The City’s Finance Commission reviewed the recent transactions that converted the properties  Elan and Breakwater from privately owned residential income properties to “workforce housing”,  the Finance Commission has determined that the scope of these real estate investments is  outside of the city’s primary investment objectives.  According to the Huntington Beach  Treasurer’s invest policy, the investment policies and practices are:    1) To assure compliance with all Federal, State, and local laws governing the investment  of public funds under the control of the City Treasurer.  2) To protect the principal moneys entrusted to this office.  3) Achieve a reasonable rate of return within the parameters of prudent risk management  while minimizing the potential for capital losses arising from market changes or issuer  default.    In a recent Finance Commission issued memo, the Finance Commission observed that elected  and Appointed Public Officials owe a fiduciary duty to their citizens with regard to the officials’  handling of the public’s money.  In accepting a fiduciary duty, the City Council accepts a legal  commitment to act in the best interests of their beneficiary, the citizens. It is the conclusion of  the Finance Commission that Real Estate investments that require the City to forgo property tax  collection for any particular property does not represent the “best interest” of the citizens of  Huntington Beach, nor does it show prudent money management or prudent risk  management.  Moreover, any foregoing of property tax is essentially an “expense” or “burden”  to the taxpayer, which should not be capriciously done by City Councils.     Finance Commission, therefore, requested the City Council to consider proposing an amendment  to the City Charter that would restrict City Councils from engaging in real property transactions  that would require the City of Huntington Beach to forgo regularly collected property taxes on  investment property, unless those purchases are approved by the voters of the City of  Huntington Beach.  Exceptions to this rule would/may include real property transactions that are  important for acquisition of private property for infrastructure.      345   RECOMMENDED ACTION  1.  Consider proposing an amendment to the City Charter that would restrict City Councils from  engaging in real property transactions that would require the City of Huntington Beach to  forgo regularly collected property taxes on investment property, unless those purchases are  approved by the voters of the City of Huntington Beach.  Exceptions to this rule would/may  include real property transactions that are important for acquisition of private property for  infrastructure.  Request the Charter Review Ad Hoc Committee propose parameters,  language, and timing of the Charter amendment measure for Council consideration.      2.  Direct the City Manager to come back with a system for the City to have a Real Property  Leasing, Purchasing, and Disposition Policy and a centralized Real Property function.      STRATEGIC PLAN GOAL  Economic Development and Fiscal Sustainability  346 Request for Action From: City of Huntington Beach Finance Commission To: City of Huntington Beach City Council In reviewing the recent transactions that converted the properties Elan and Breakwater from privately owned residential income properties to “workforce housing”, the Finance Commission has determined that the scope of these real estate investments is outside of the city’s primary investment objectives. According to the Huntington Beach Treasurer’s invest policy, the investment practices and policies of the City of Huntington Beach are based upon state law and prudent money management. The primary goals of these practices are: 1) To assure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the City Treasurer. 2) To protect the principal moneys entrusted to this office. 3) Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default. Elected and Appointed Public Officials owe a fiduciary duty to their citizens with regard to the officials’ handling of the public’s money. In accepting a fiduciary duty, the City Council accepts a legal commitment to act in the best interests of their beneficiary, the citizens. It is the conclusion of the Finance Commission that Real Estate investments that require the city to forgo property tax collection for any particular property does not represent the “best interest” of the citizens of Huntington Beach, nor does it show prudent money management or prudent risk management. The City of Huntington Beach Finance Commission, therefore, respectfully requests the City of Huntington Beach City Council to consider proposing an amendment to the City Charter that would restrict this and future City Councils from contracting with any entity for any real estate investment that would require the City of Huntington Beach to forgo regularly collected property taxes on investment property, unless those purchases are approved by the voters of the City of Huntington Beach. Thank you for your consideration in this matter City of Huntington Beach Finance Commission