Loading...
HomeMy WebLinkAboutProposed Charter Amendment - City of Huntington Beach Real P (3) 0-micro�a 2000 Main Street, ot'c, ..:---,n—.... Huntington Beach,CA �___ �\ 92648 Imil Cityof Huntington Beach g Recommended Action #1 :4: % Approved 4-3 z-UUNTY_ (Kalmick, Moser, Bolton-No) Recommended Action #2 Approved 7-0 File #: 23-633 MEETING DATE: 7/18/2023 Subject: Submitted by Mayor Pro Tern 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 Page 1 of 1 Printed on 7/13/2023 powere104 LegtstarTTM City Council/ ACTION AGENDA July 18, 2023 Public Financing Authority COUNCILMEMBER ITEMS 21. 23-622 Item Submitted by Councilmember Bolton Denied - 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. Denied 3-4(Van Der Mark, Strickland, McKeon, Burns-No) 22. 23-633 Item Submitted by Mayor Pro Tern Van Der Mark and Councilmember McKeon Approved - 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. Item 1 Approved 4-3(Kalmick, Moser, Bolton-No); Item 2 Approved 7-0 ADJOURNMENT— 11:52 PM 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 1 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING - COUNCIL MEMBER ITEMS REPORT TO: CITY COUNCIL FROM: Mayor Pro Tern 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 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 SUPPLEMENTAL COMMUNICATION City of Huntington Beach Finance Commission Meeting Cate: Agenda Item No.; 22(.23 -60,331 From: Fikes.Cathy To: Aoenda Alerts Subject: FW:Proposed Charter Amendment/Property July 18th mtg Date: Friday,July 14,2023 9:01:51 AM From: pacj <pacj_03@yahoo.com> Sent:Thursday,July 13, 2023 10:03 PM To:CITY COUNCIL(INCL. CMO STAFF) <city.council@surfcity-hb.org>; Estanislau, Robin <Robin.Estanislau@surfcity-hb.org> Subject: Proposed Charter Amendment/Property July 18th mtg Please post the Finance Commission memo mentioned in the Van Der Mark-McKeon letter. Thank you. Pat Quintana SUPPLEMENTAL COMMUNICATION Meeting 'Late: 91/F/2,3 Benda Item No.: �.2 �3 - �p_3,3) Moore, Tania From: Fikes, Cathy Sent: Monday, July 17, 2023 3:39 PM To: Agenda Alerts Subject: FW: Opposition To Item # 22 On City Council Agenda (Proposed Charter Amendment) From: Douglas Von Dollen <von.dollendouglas@gmail.com> Sent: Monday, July 17, 2023 11:26 AM To: CITY COUNCIL (INCL. CMO STAFF) <city.council@surfcity-hb.org> Subject: Fwd: Opposition To Item #22 On City Council Agenda (Proposed Charter Amendment) Forwarded message From: Douglas Von Dollen <von.dollendouglas@gmail.com> Date: Mon, Jul 17, 2023 at 11:24 AM Subject: Opposition To Item#22 On City Council Agenda(Proposed Charter Itlene I - To: <SupplementalComm@surfcity-hb.org> SUPPLE''' grAL COMMUNICATION Dear City Council Members and Staff, Meeting Date: `/i81.20R3 Huntington Beach is almost unique among California cities. Agenda Item No.; as ��� -Ca33 It is the only one to vote no on certification of its housing element, and the only one to sue the state over the 50 year-old RHNA process designed to address the housing needs of residents,regardless of income. It has attacked homeowner rights to build "Granny flats." And now members of its City Council want to attack Joint Power Authority agreements designed to provide affordable work-force housing. Huntington Beach is also 1 of only 2 cities among the largest 25 in California that is majority White/Non- Latino. It is the only city in Orange County with more than 100,000 residents that is majority White/Non- Latino. Connecting Huntington Beach's unique approach to housing to its unique demographics can make people uncomfortable, so,to provide context, I suggest we look at the only other city among the 25 largest in California that is majority White/Non-Latino: Glendale. Like Huntington Beach has done through the formation of its Human Relations Committee and alliance with the Interfaith Council, Glendale has confronted a difficult past of religious and racial intolerance. For example, in October, 2020, it became the first city in California and the third in the nation to pass a resolution apologizing for its history as a"sundown town." The term references cities that once excluded African Americans. Like Huntington Beach, Glendale was required to plan for more than 13,000 new housing units between 2021 and 2029 by the Southern California Association of Governments as part of the state's Regional Housing Needs Allocation process. And this is where the similarities end. i Glendale passed a housing element that was certified by the California Department of Housing (HCD) in February 2023. And in April 2023, Glendale entered into a novel Joint Powers Authority agreement that creates a trust between the cities of Burbank, Glendale and Pasadena to address regional affordable housing needs. Instead of putting limits on JPAs, Glendale is expanding their use. Glendale's representative to the new JPA is new Mayor Dan Brotman, a former economics teacher at Glendale College. Brotman is quoted in the press release announcing his selection as Mayor as saying, "As an educator, environmental activist, and City.Council member, I have always tried to do what I can to make the world a little better, fairer, and more livable for everyone. That means identifying long-term challenges and applying best practices from around the world to turn them into opportunities." Before proceeding with this proposal to restrict JPAs, I urge Councilmember McKeon and Finance Commission members Frank Lo Grasso Hank Cicerone, and Billy Hamilton to meet with Mayor Brotman and other representatives of Glendale to discuss their differing approaches to housing. I believe that HB's officials share Brotman's commitment to applying best practices to solve the city's challenges and will come away from this meeting with stronger proposals than the one on offer. 2 Moore, Tania From: Fikes, Cathy Sent: Monday,July 17,2023 3:42 PM To: Agenda Alerts Subject: FW:7 18 2023 Agenda Item#22 Proposed City Charter Amendment-VOTE NO From:Paula Schaefer<pas92649@gmail.com> Sent:Monday,July 17,2023 3:32 PM To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org> Subject:718 2023 Agenda Item#22 Proposed City Charter Amendment-VOTE NO Mayor Strickland and Council Members: I urge you to vote NO on this item and do not have the City Manager develop a proposed City Charter Amendment. This is simply a poorly disguised way to prevent the City from fulfilling its obligation to ensure that all types of housing can be developed within the City. If this were adopted, future City Councils would be restricted in its negotiating ability because of the necessity to have an item voted on by City residents. This would only prolong the already lengthy process required of any real estate development project that contains property tax relief. Paula Schaefer 1 Moore, Tania From: Fikes, Cathy Sent: Monday,July 17, 2023 3:42 PM To: Agenda Alerts Subject: FW: SUPPORT Agenda Item 22 (23-633) From:Ann Palmer<714anniep@gmail.com> Sent: Monday,July 17,2023 3:36 PM To:supplementalcomm@surfcity-hb.org Cc:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org> Subject:SUPPORT Agenda Item 22 (23-633) I strongly support item#22 on the agenda for the Huntington Beach City Council meeting scheduled for 7.18.23; the item, a proposed Charter Amendment, is listed below. Additionally, I have consensus from a large number of neighbors and residents throughout our city that this is a much-needed provision. We are being hammered daily with overblown mandates and schemes for housing far beyond what is warranted, needed or within the scope of what this community should be constructing. To add to that mix any development that does not generate property taxes and in some cases may not meet any RHNA quotas is a fool's journey. Should such projects ever be considered they truly must be put in front of Huntington Beach voters for the sake of disclosure and decision. Otherwise they have the appearance of being undisclosed schemes that lack input and understanding by the public. Thank you for your time and consideration in approving this important matter. Very Respectfully, Ann Palmer 30+year resident Huntington Beach 310.982.8263 Proposed Charter Amendment - City of Huntington Beach Real Property - Property Tax (Prevents city.acquiring property that won 't generate property tax without Voter approval. Exception: that acquired for infrastructure) 1 Moore, Tania From: Ann Palmer <714anniep@gmail.com> Sent: Monday,July 17, 2023 3:36 PM To: supplementalcomm@surfcity-hb.org Cc: CITY COUNCIL(INCL. CMO STAFF) Subject: SUPPORT Agenda Item 22 (23-633) I strongly support item#22 on the agenda for the Huntington Beach City Council meeting scheduled for 7.18.23;the item, a proposed Charter Amendment, is listed below. Additionally, I have consensus from a large number of neighbors and residents throughout our city that this is a much-needed provision. We are being hammered daily with overblown mandates and schemes for housing far beyond what is warranted, needed or within the scope of what this community should'be constructing. To add to that mix any development that does not generate property taxes and in some cases may not meet any RHNA quotas is a fool's journey. Should such projects ever be considered they truly must be put in front of Huntington Beach voters for the sake of disclosure and decision. Otherwise they have the appearance of being undisclosed schemes that lack input and understanding by the public. Thank you for your time and consideration in approving this important matter. Very Respectfully, Ann Palmer 30+year resident Huntington Beach 310.982.8263 Proposed Charter Amendment - City of Huntington Beach Real Property - Property Tax (Prevents city acquiring property that won 't generate property tax without Voter approval. Exception: that acquired for infrastructure) 1 Moore, Tania From: K Carroll <kcrissie7@gmail.com> Sent: Tuesday,July 18, 2023 11:20 AM To: supplementalcomm@surfcity-hb.org Subject: City Council/Public Financing Authority Mtg.July 18, 2023 Dear Mayor Strictland, Pro Tern Gracey Van Der Mark, Pat Burns, Casey McKeon, First off,thank you so much for what you are doing! You are doing an amazing job listening to residents and improving the quality of life from what it has been previous to your election. My daughter and family moved away from HB because of the homeless issue and safety concerns for their kids. They just visited and commented on how it has improved and I have noticed it too. Drove down Main Street the other day and it was so refreshing, clean and I did not see one homeless person. Love that we can drive down also instead of blocking off the street. I also think it is safer not having a street open that creates crowds. The improvement of the homeless is out of bounds. The previous majority said it could not be done and one excuse after another. Thank you for giving the Police Department the tools to do their job instead of continuing to pour money into ineffective 'remedies'. Look at LA who are asking for billions of additional funding, i.e.,taxation. Thank you for allowing me to comment on a few agenda items for tonight: 23-585: No on appeal. Please keep our residential area's residential. This is an eye sore, health concerns and does lessen property value. 23-622: No. Let HR do their job. They should be spending their time recruiting and not tasked with ridiculous time consuming nonsense. From a previous HR Director,typically, I encourage people to make moves to enhance their careers and income. That is not a bad thing. If you can promote, if not let them move on to be a rock star instead of staying stagnant. It does cost to recruit and that cost should not be a factor in retention. F 23-633: A huge YES on this. Thank you! Elan iwas and continues to be a disaster. Should have never been built,vacant stores on the bottom. Looks terrible. And the deal on taxes should have NOT been made by the council. That is a ballot item. Pipeline purchase for the homeless was another disaster by the previous council where they purchased in an industrial park where a homeless shelter accommodation necessary was never allowed by the regulations in the industrial park. Barbara Delglaize voted on this and her brother's real estate firm brokered the deal. That is criminal. Then the city had to turn around and sell for over 1 million dollar loss to the taxpayers. To add to this,Michael Gates never saw the contract. I don't believe that Barbara Delglaize did not know that it could not be used as a shelter with her being in Real Estate including PROPERTY MANAGEMENT. Michael Gates should review all contracts before purchase. I believe the council intentionally kept this from Michael Gates. No comments on all the other items. Know you will again hit home runs. Again,thank you to our fab four!! To the rest of you, we know you are undermining the City Council Majority and Huntington Beach Citizens who you never listened to. Keep it up. You will NEVER be re-elected. Your attempts on Michael Gates worked really well, didn't it?His fan base skyrocketed and will continue to do so as it will with the current majority. i From: Amanda Soto To: suoolementalcomm(Thsurfcity-hb,orq Cc: Cesar C;Ineg.an.kirkebv@hcd.ca.aov Subject: Item No.22 Proposed Charter Amendment—City of Huntington Beach Real Property Date: Tuesday,July 18,2023 4:52:34 PM Attachments: proposed Charter Amendment—City of Huntinaton Beach Real Property—Property Tax(July 18.2023)-2.pdf To whom it may concern: Below is the Kennedy Commission public comment on "Item No. 22 Proposed Charter Amendment— City of Huntington Beach Real Property ". Thank you, Amanda Soto Amanda Soto (she/her) Community Organizer Kennedy C O M M I S S I O July 18, 2023 www.kennedycommission.urg 17701 Cowan Ave.,Suite 200 Mayor Strickland and City Council In 949 250 0909 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: Item No.22 Proposed Charter Amendment—City of Huntington Beach Real Property —Property Tax (July 18,2023) Dear Mayor Strickland and City Council: The Kennedy Commission(the Commission) is a broad-based coalition of residents and community organizations that advocate for the production of homes affordable for extremely low income families earning less than$30,000 annually in Orange County. Formed in 2001,the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that have led to the construction of homes affordable to lower-income working families. We are writing in respect to the requested action of the proposed charter amendment on Property Tax Exemption. We understand concerns over properties like Elan and Breakwater developments that are benefiting from property tax relief, but not providing significant community benefits. We do believe that it is important to distinguish those developments from developments that are creating 100%deed restricted affordable housing opportunities to extremely low,very low, and low income residents in Huntington Beach. We are concerned that the proposed charter amendment will continue to create additional barriers that will disincentivize the creation of affordable housing. If the city choses to move forward with the charter amendment, it should exempt 100%affordable housing developments. We request that the city prioritize the creation of affordable homes for extremely low-, very low-, and low-income households to truly address housing needs not being addressed by the housing market in Huntington Beach. The Commission looks forward to partnering with the State and the City of Huntington Beach to create opportunities to increase affordable homes for lower income households in the city. If you have any questions,please feel free to contact me at(949)250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director Moore, Tania From: Fikes, Cathy Sent: Wednesday, July 26, 2023 4:05 PM To: Moore, Tania Subject: FW: CC Mtg. 7/18/2023-23-633 From: K Carroll<kcrissie7@gmail.com> Sent:Wednesday,July 19, 2023 10:11 AM To:CITY COUNCIL(INCL.CMO STAFF)<city.council@surfcity-hb.org> Subject:CC Mtg.7/18/2023-23-633 After this topic was discussed at last night's meeting, I decided to do research. I pass by Elan everyday. I have noticed the deterioration.No commercial tenants for some time. Horrible paper covering these tenant's windows for the whole time. Signage (front) shadow where store sign was, falling down bamboo shades on first floor tenants ground floor. facing Ellis. The representatives gave the excuse for non rental, that there was not enough parking available for commercial use. I can say from first hand experience, this is of true. We use to go to TD Ameritrade frequently when they were tenants and we never experienced parking issues. In fact there was a surplus of parking everytime we were there. They have adequate parking for commercial tenant's. The speakers in last night's meeting intentionally misrepresented facts. I would love to hear the real reason's why the tenant's left. After reading the reviews below I think it is pretty apparent. Upkeep, management responsiveness, maintenance and safety. I am sharing Yelp review links below that indicate poor reviews on management, maintenance, upkeep and safety issues, etc. • Elan: https://www.yelp.com/biz/elan-huntington-beach-luxury-apartments-huntington-beach-2 r, Breakwater: https://www.yelp.com/biz/the-breakwater-huntington-beach This was a horrible investment. It appears that they will not invest in the property and it will have to have a total gut when the City purchases. The taxpayers have now sacrificed tax dollars that could have been used to offset current expenses and will have to dump huge dollars to renovate. Dan and Natalie, you know this; but, figured you will be long gone after other political interests and won't have to suffer any taxpayer wrath for your actions. Obviously, Casey, you are aware of this and your expertise has really paid off and your firm stance is greatly appreciated by me and my family and all my neighbors who I share with. Thank you so much Casey and Gracey for putting this on the agenda and moving this forward. Thank you also to Mayor Strickland and Pat Burns for supporting this item. i Dan Kalmick and Natalie Moser, continuing to say that this was a policy decision and the voters (TAXPAYERS)did not need to be involved because of the expense of special ballot and waiting time is ridiculous. How about the waste of money for the lawsuits you are feeding and involved in...BOLSA CHICA and the AIR SHOW, etc., etc., etc. Your actions were totally nefarious. Thank you again fab four.,for the action taken last night on all items. I support and appreciate all. Best regards, Kris Carroll 2