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HomeMy WebLinkAbout2023-07-18Minutes City Council/Public Financing Authority Regular Meeting, and Special Meeting of the Housing Authority City of Huntington Beach Tuesday, July 18, 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 CALL TO ORDER — 5:00 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None CITY COUNCILMEMBER COMMENTS (3-Minute Time Limit) Councilmember Burns congratulated Huntington Beach High School student Bradley Navarro on his first- round Major League Baseball (MLB) draft; Councilmember McKeon discussed his appreciation for Council’s adoption of a balanced budget on June 26, 2023, and described financial profits association with the 2022 Pacific Airshow; Councilmember Moser acknowledged her attendance at the “A Walk On Water” surf therapy event held on July 15 and 16 in Huntington Beach. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION ITEMS — None PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS — None A motion was made by Burns, second by Van Der Mark, to recess to Closed Session. RECESSED TO CLOSED SESSION — 5:03 PM CLOSED SESSION 1. 23-609 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 Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 2 of 24 2. 23-632 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 RECONVENED THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING, AND CALLED TO ORDER A SPECIAL MEETING OF THE HOUSING AUTHORITY — 6:00 PM ROLL CALL Present: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember Kalmick INVOCATION 3. 23-517 Huntington Beach Fire and Police Chaplain Roger Wing 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 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: City Manager's Report Item #4 (Revised PowerPoint presentation); Consent Calendar Item #6 (1 email communication), Item #7 (4 email communications), Item #8 (1 email communication), Item #9 (1 email communication); Public Hearing Item #17 (5 letters and 12 email communications); Administrative Items #18 (1 email communication), Item #20 (Revised PowerPoint presentation and 1 email communication); Councilmember Items #21 (1 email communication), Item #22 (1 Request for Action memo and 5 email communications). PUBLIC COMMENTS — 18 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. Diane Bentley, a 22-year Huntington Beach resident, was called to speak and shared her opinions and concerns related to the Pacific Air Show settlement. (00:14:26) Jim Rossman, a 44-year Huntington Beach resident and Third Vice Commander of Huntington Beach American Legion Post 133, was called to speak and announced the 2nd Annual Car Show on August 20 at the Huntington Beach Sports Complex to raise funds for the Veterans Resource Center, which Post 133 provides at Central Library. (00:16:47) City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 3 of 24 Unnamed Guest was called to speak and shared her opinions related to recent actions of Councilmember Kalmick and an organization for which he is president, and asked that he resign from his Councilmember position. (00:19:43) Marcy Nava, a 53-year Huntington Beach resident, was called to speak and shared her support for the Pacific Air Show. (00:21:53) Tim Geddes, a long-time Huntington Beach resident and Mobile Home Advisory Board Former Chair, was called to speak and shared his opinions and concerns related to the Council Majority. (00:22:27) Andrew Einhorn, Huntington Beach resident, was called to speak and shared his opinions and concerns regarding a Councilmember's alleged past hate speech and asked that City Attorney Michael Gates appoint an independent external committee to review the allegations since City Council has failed to act on his requests to address this situation. (00:25:33) Butch Twining, a 57-year Huntington Beach resident and Planning Commission Vice Chair, was called to speak and shared his opposition to Public Hearing Item #17 regarding Conditional Use Permit No. 23- 006 (Huntington Beach Community Church Wireless Communication Facility). (00:27:39) Amory Hanson was called to speak and shared his support for Councilmember Items #22 regarding a proposed Charter Amendment requiring voter approval for selected City of Huntington Beach purchases of Real Property that impact Property Tax. (00:30:47) Russ Neal, a Huntington Beach resident, was called to speak and shared his support for Consent Calendar Item #7 regarding positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC), and Councilmember Items #22 regarding a proposed Charter Amendment requiring voter approval for selected City of Huntington Beach purchases of Real Property that impact Property Tax. (00:32:07) Lisa Ferraro, 30-year Huntington Beach resident and 22-year small business owner, was called to speak and stated her support for the newly-elected Councilmembers and City Attorney Michael Gates. (00:34:54) Doris Hill, a long-time Huntington Beach resident, was called to speak and shared her support for the newly-elected Councilmembers and City Attorney Michael Gates. (00:37:40) Jeanne Goodin was called to speak and shared her support for the newly-elected Councilmembers and City Attorney Michael Gates. (00:39:58) Kathy Carrick, a long-time Huntington Beach resident, was called to speak and shared her support for the Pacific Air Show, and asked that Councilmembers focus on cooperation and fixing the real problems that affect residents. (00:43:43) Bryan Visnoski, 35-year Huntington Beach resident, was called to speak and stated his support for Consent Calendar Item #12 regarding construction contract for the Banning Avenue Street Improvements with the roundabout. (00:46:38) Unnamed Guest was called to speak and shared her opposition related to recent communication she received from Save Surf City regarding a number of actions and decisions made by Councilmembers. (00:49:44) City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 4 of 24 Pat Goodman was called to speak and stated her opposition to Councilmember Items #22 regarding a proposed Charter Amendment requiring voter approval for selected City of Huntington Beach purchases of Real Property that impact Property Tax. (00:52:41) Ken Inouye, 50-year Huntington Beach resident, was called to speak and thanked Councilmembers Bolton, Kalmick and Moser for their service. Mr. Inouye shared his opinions and concerns regarding the budget recently passed during the "11th Hour" and respectfully requested that Council regularly review the budget and make changes, if necessary, and allow time for resident input. (00:54:41) Roger Noor was called to speak and stated his support for the newly-elected Councilmembers and appreciation for Town hall meetings. (00:57:44) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS — None AB 1234 REPORTING — None OPENNESS IN NEGOTIATION DISCLOSURES — None CITY MANAGER’S REPORT 4. 23-628 One Stop Shop Update City Manager Al Zelinka introduced Jasmine Daley, Community Development Department Building Official, who presented a PowerPoint communication titled One Stop Update with slides entitled: Background; StreamlineHB: Top Components; StreamlineHB: Status; Where are we today?; Permit Center; External Online Portal: A "Game Changer"; ACA Demo Video; Streamline HB; Streamline HB Steps; Data Collection; Daily Customers Per Department; Permit Valuation by Year (2019-2023); Permit Counts by Year (2019-2023); In-Person Customers (2019-2023); Streamline HB Progress and Plans; Streamline HB Progress; Streamline HB Plan (2); Preliminary Cost Estimates, and Questions. Councilmember McKeon suggested adding Special Event permits; providing sequential check lists for different types of projects; and developing a system to address the issue of all involved parties not being aware of requested changes or status by possibly including everyone in all communications such as Building Department, applicant, third party reviewer, architect, etc. Mayor Pro Tem Van Der Mark and Building Official Daley discussed the need for all costs to be determined as soon as possible in the application process, and eliminate the need to contact multiple departments to determine costs and availability when using multiple City facilities. Mayor Strickland noted that Huntington Beach hotels compete with surrounding cities for group events, some of which provide a more customer friendly permitting process. Mayor Strickland noted that City Manager Al Zelinka and Kelly Miller of Visit HB are already in communications on this issue. Community Development Director Ursula Luna-Reynosa clarified that typically the permitting process is for land development, entitlement, or construction permits and noted the issues being presented by Council appear to be outside of those core functions for the Development Department. She noted that Economic Development and Community Event Services Departments have been involved in some of the preliminary conversations and confirmed there will be more collaborative effort going forward. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 5 of 24 Councilmember Moser stated her support for an efficient process that includes large events. She further explained that from her experiences with project management, it is important to focus first on the original project and getting it right, and then other ancillary objectives can be incorporated. City Manager Al Zelinka reminded everyone that Consultant Dennis Snow has stated that the "gift" of problems and complaints that appear during the development process provides an opportunity to make things better. He added they shouldn't just address the physical aspects without including the programmatic aspects, and noted that some things will be phased in based on available resources, and the ultimate result will be the best system for economic development in Huntington Beach. Councilmember Burns noted his perspective being the amount of time it can take before a project breaks dirt or starts pounding nails, and he is excited about addressing that issue. CONSENT CALENDAR City Manager Al Zelinka announced that Consent Calendar Item #8, regarding an Ocean Friendly Communities Pilot Program, has been tabled to a date uncertain as requested by the Surfrider Foundation. Councilmember Kalmick pulled Items #7 and #12, and Councilmember Burns pulled Item #14, for further discussion. CITY CLERK 5. 23-516 Approved and Adopted Minutes A motion was made by Kalmick, second Burns to approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 20, 2023; and, approve and adopt the City Council/Public Financing Authority adjourned regular meeting minutes of June 26, 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 6. 23-626 Approved Comments by the Jet Noise Commission to the Federal Aviation Administration A motion was made by Kalmick, second Burns to approve the comment letter, and direct staff to submit the letter to the FAA. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 7. 23-559 Approved positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC). City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 6 of 24 Councilmember Kalmick pulled this item because to the best of his knowledge several of these items have been either pulled or are on suspense, therefore he requested they all follow the League of Cities recommendations to be on “Watch” rather than “Oppose”. A motion was made by Kalmick, second Moser to approve the following positions on State legislation: A) WATCH AB 223 (Ward) Change of Gender and Sex Identifier B) WATCH AB 957 (Wilson) Family Law: Gender Identity C) WATCH SB 58 (Wiener) Controlled Substances: Decriminalization of Certain Hallucinogenic Substances D) WATCH SB 253 (Wiener) Climate Corporate Data Accountability Act E) WATCH SB 770 (Wiener/McGuire) Health Care: Unified Health Care Financing F) WATCH AB 1287 (Alvarez) Density Bonus Law G) WATCH SB 7 (Blakespear) The Homeless Housing Obligation Act H) WATCH SB 555 (Wahab) Stable Affordable Housing Act of 2023 I) WATCH SB 584 (Limon/Caballero) Laborforce housing: Short-Term Rental Tax Law J) WATCH SB 50 (Bradford) Vehicles: Enforcement K) WATCH SB 838 (Menjivar) Victim Compensation: Use of Force by a Law Enforcement Officer L) WATCH Assembly Constitutional Amendment (ACA) 4- Eligibility to Vote The motion failed by the following roll call vote: AYES: Kalmick, Moser, and Bolton NOES: Van Der Mark, Strickland, McKeon, and Burns Councilmember Bolton shared her opinion that AB 223 and AB 957 are dealing with cultural war issues related to minors, parents, custody, and visitation, issues which she believes are not relevant to the business of the City of Huntington Beach. Councilmember Kalmick stated AB 1287 is relevant to Huntington Beach, and he supports opposing it as this takes away a lot of local control as it mandates that an entire project must be approved or denied, and the City would not be allowed to pick and choose developer incentives. Councilmember Kalmick stated he does not support a fifteen percent (15%) Transient Occupancy Tax, and doesn't believe SB 584 will necessarily be acted upon in the near term. A motion was made by Strickland, second Van Der Mark to approve the following position on State legislation: A) OPPOSE AB 223 (Ward) Change of Gender and Sex Identifier. AB 223 provides for specified records to be kept confidential by courts for minors' petition for change of gender and sex identifiers. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Bolton ABSTAIN: Kalmick, and Moser A motion was made by Strickland, second Van Der Mark to approve the following position on State legislation: City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 7 of 24 B) OPPOSE AB 957 (Wilson) Family Law: Gender Identity. AB 957 clarifies that in Family Court when determining the best interests of a child in a proceeding to determine custody or visitation for a child, shall consider health, safety and welfare of the child, including whether or not a parent affirms the child's chosen gender identity. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Bolton ABSTAIN: Kalmick, and Moser A motion was made by Strickland, second Burns to approve the following position on State legislation: C) OPPOSE SB 58 (Wiener) Controlled Substances: Decriminalization of Certain Hallucinogenic Substances. SB 58 makes lawful the possession, preparation, obtaining, transfers 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. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second McKeon to approve the following position on State legislation: D) OPPOSE SB 253 (Wiener) Climate Corporate Data Accountability Act. SB 253 would require any partnership, corporation, LLC, or other US business entity with annual revenues in excess of $1B, and that does business in California, to publicly report their annual green-house gas emissions as specified by the California Air Resources Board. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second Burns to approve the following position on State legislation: E) OPPOSE SB 770 (Wiener/McGuire) Health Care: Unified Health Care Financing. SB 770 directs the Secretary of California Health and Human Services Agency to pursue waiver discussions with the Federal government for capturing of 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. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 8 of 24 A motion was made by Strickland, second McKeon to approve the following position on State legislation: F) OPPOSE AB 1287 (Alvarez) Density Bonus Law. AB 1287 requires city or county or city and county to grant additional density concessions and incentives when an applicant agrees to include additional low or moderate-income units on top of the maximum number of units for low, very low, or moderate-income units. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None A motion was made by Strickland, second Burns to approve the following position on State legislation: G) OPPOSE SB 7 (Blakespear) The Homeless Housing Obligation Act. SB 7 would require Regional Housing Needs (RHN) 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. SB 7 would also require Department of Housing and Community Development to develop and administer a new program upon appropriation of funding by the legislature to provide grants to cities, counties and non-profit housing entities to fulfill the obligations to provide housing opportunities for homeless persons. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second McKeon to approve the following positions on State legislation: H) OPPOSE SB 555 (Wahab) Stable Affordable Housing Act of 2023. SB 555 creates the Stable Affordable Housing Act for the purposes of planning for the development of social housing through a mix of acquisitions and new production. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second Van Der Mark to approve the following position on State legislation: I) OPPOSE SB 584 (Limon/Caballero) Laborforce housing: Short-Term Rental Tax Law. SB 584 requires a fifteen percent (15%) State short-term tax occupancy tax be collected and to allocate the funds for the construction, acquisition and rehabilitation of affordable housing and renter protection programs. This bill creates a new program at HCD that would finance labor force housing units, and City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 9 of 24 provide grants to cities, counties, and local housing authorities. The City of Huntington Beach currently imposes a Transient Occupancy Tax of ten percent (10%). The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second Burns to approve the following position on State legislation: J) OPPOSE SB 50 (Bradford) Vehicles: Enforcement. SB 50 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. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second Burns to approve the following position on State legislation: K) OPPOSE SB 838 (Menjivar) Victim Compensation: Use of Force by a Law Enforcement Officer. SB 838 would revise the definition of a crime for the purpose of the Victim Compensation program to include an incident in which an individual sustains serious bodily injury or death as a result of law enforcement officer's use of force. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton A motion was made by Strickland, second Burns to approve the following position on State legislation: L) OPPOSE Assembly Constitutional Amendment (ACA) 4- Eligibility to Vote. ACA 4 repeals the 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 voters. The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: None ABSTAIN: Kalmick, Moser, and Bolton 8. 23-587 TABLED TO A DATE UNCERTAIN Consideration of the Environmental Sustainability Board's Recommendation to Participate in the Surfrider Foundation's Ocean Friendly Communities Pilot Program City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 10 of 24 COMMUNITY AND LIBRARY SERVICES 9. 23-504 Approved 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. A motion was made by Kalmick, second Burns to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 10. 23-597 Approved five-year License Agreement with Southern California Edison for Edison Community Park A motion was made by Kalmick, second Burns to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None HUMAN RESOURCES 11. 23-606 Approved Appointment of Sunny Han as Chief Financial Officer and Approved the Employment Agreement A motion was made by Kalmick, second Burns to 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None PUBLIC WORKS 12. 23-456 Accepted the lowest responsive and responsible bid, and authorized 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. Councilmember Kalmick pulled this item to allow for a staff presentation to review options. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 11 of 24 Chau Vu, Deputy Director of Public Works, presented a PowerPoint communication titled Banning Avenue Improvement Project 2022/23 with slides entitled: Purpose and Need; Scope of Work; Renderings of Roundabout; Community Engagement; Bid Alternatives; Bids and Basis of Award; Funding; CIP AES Funding Summary; Grant Application for Deferred Roundabout; Options (2); and Questions? Councilmember Kalmick shared some more details regarding the upcoming funding which may be available through the Complete Streets grants program, and noted funding includes planning costs. He stated his support for including the roundabout in this phase by using AES funding now, delaying Banning Avenue enhanced street lighting and rehab, and delaying other projects on streets like Magnolia, Newland and Bushard, if possible, to be paid for by Complete Streets grants. Deputy Director Vu noted that any funding that comes from Federal sources will most likely mean a two-year timeframe from award to receipt because of the time-consuming procedural process. Councilmember McKeon noted that the roundabout can't be started this year because there is not enough time to complete it before school starts, so if approved it would be planned for next year. Deputy Director Vu confirmed the roundabout project would require a three-month street closure, a major traffic disruption for an area that is less than one-half mile from the school. Councilmember McKeon stated his support for just installing lighting conduit and boxes for the north side first, increasing the lumens on the existing south side lights, and evaluating if that creates enough lighting. If not, the conduit and boxes are already there to actually install the north side lights. Deputy Director Vu reviewed the Options slides. She clarified that enhanced lighting includes 24 new street light poles and nine additional fixtures added to existing poles, and noted there would have to be further investigation to determine potential cost savings for a Change Order to just install lighting conduit and increase lumens on existing south side lights. Councilmember McKeon stated his support for Option C, removing the roundabout for a re-bid and build in 2024. City Manager Al Zelinka clarified with Deputy Director Vu that the intersection for the proposed roundabout would remain a 4-way stop until the roundabout is constructed. Assistant City Manager Travis Hopkins added that if a roundabout was totally removed from all plans, there are proposed intersection safety enhancements with 4-way stops. If Council approves to just delay the roundabout option, the intersection would be left as is until the roundabout is installed next year with City funding, or installed in two years with anticipated Federal funding. Councilmember Moser stated her support for a roundabout, and clarified potential savings would be realized only if it was determined additional light poles are not needed on the north side. Assistant City Manager Hopkins clarified that in the end, if the additional light poles are needed, it is unknown at this time whether completing that project would cost the same, or more, or less than what a change order to only install conduit will save. Councilmember Kalmick confirmed that the proposed additional light poles will be installed for the south side. He also stated he does not expect roundabout costs will be reduced with a re-bid in the future, and asked for clarification on whether re-bidding the roundabout could potentially delay construction to 2025 or 2026. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 12 of 24 Assistant City Manager Hopkins clarified if Council approves re-biding and using City funds, the roundabout could be completed next summer. A motion was made by McKeon, second Strickland to 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 authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney, as amended to defer roundabout construction to 2024; issue change order to construct conduit only on the north side of Banning and increase lumens on the south side of Banning; and, apply for additional federal and OCTA grant funding. The motion as amended carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 13. 23-496 Approved and authorized 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 A motion was made by Kalmick, second Burns to 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." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 14. 23-506 Adopted Resolution No. 2023-30 authorizing the application for grant funds from the State Department of Parks and Recreation through the Habitat Conservation Fund Program Councilmember Burns pulled this item for a staff presentation. Chau Vu, Deputy Director of Public Works, presented a PowerPoint communication titled Shipley Nature Center Grant Resolution with slides entitled: Grant Resolution; Exhibit; and Questions? Deputy Director Vu noted that total costs are expected to be about $700,000 and the grant match would cover 50 percent (50%) of the costs. Councilmember Burns noted the cost seems excessive to him for a wood chip path around the lake. He suggested a good mowing, with Public Works placing wood chips produced from tree trimming on the path as an alternative solution. Deputy Director Vu replied this project has not been designed yet, but does include some construction cost increases, and clarified that if the project ends up only costing about $400,000, the City will then be obligated for $200,000. City Manager Zelinka clarified with Deputy Director Vu that if grant funds actually become available, Council will then have the opportunity to accept or deny those funds, and this item is only authorization to City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 13 of 24 submit for the grant funds. The City becomes obligated for 50% of the project if a Grant Agreement is approved by Council if grant funds become available. Councilmember Moser stated her support for applying for available grant monies, and noted this condition has existed for a long time and is preventing access to certain areas of the Nature Center. Mayor Strickland commended Councilmember Burns for pulling this item to clarify it is not about approving a project, but only approving the application for grant funds. A motion was made by Moser, second Bolton to 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." The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 15. 23-577 Accepted the lowest responsive and responsible bid and authorized execution of a construction contract with Premo Construction in the amount of $364,095 for the Well 9 Roof Replacement Project, CC1687 A motion was made by Kalmick, second Burns to accept the lowest responsive and responsible bid submitted by Premo Construction, Inc. in the amount of $364,095; authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney; and appropriate $97,300 from the Water Fund to account 50691043.82100. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 16. 23-582 Accepted the lowest responsive and responsible bid and authorized 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 motion was made by Kalmick, second Burns 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. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None PUBLIC HEARING 17. 23-585 Denied Conditional Use Permit No. 23-006 (Huntington Beach Community Church Wireless Communication Facility) City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 14 of 24 Councilmember Kalmick stated he spoke with staff about this item. No other Councilmembers had ex parte communications to disclose for this item. Hayden Beckman, Senior Planner, presented a PowerPoint communication titled Appeal of the Planning Commission's Action Conditional Use Permit No. 23-006- (Huntington Beach Community Church Wireless Communication Facility) with slides entitled: Proposed Project; Zoning Administrator Approval; Planning Commission Action; Project Site; Site Plan; Elevations; Stealth Design (3); Analysis (2); Appeal of Planning Commission's Action; Appeal of Zoning Administrator's Approval (4); Stealth v. Non-Stealth; Staff Recommendation; and Questions? Mayor Pro Tem Van Der Mark confirmed with Senior Planner Beckman that the applicant, not the City, makes the decision regarding potential sites for the project to meet gaps in applicant's service. Senior Planner Beckman noted staff believes the applicant has demonstrated good faith efforts to find alternative sites. There was further discussion and review of the presentation to evaluate how close this tower would be located to existing homes. Councilmember McKeon confirmed with Community Development Director Ursula Luna-Reynosa that federal laws only allow cities to have control over esthetics and development standards, and staff confirms that the proposed project meets established zoning standards. City Attorney Michael Gates confirmed there are a host of issues that the Federal Communications Commission (FCC) has jurisdiction over for a project like this, and it appears the applicant has met all of the requirements that federal law contemplates. Mayor Strickland confirmed with City Attorney Michael Gates there could be a federal challenge if the City Council denies this Conditional Use Permit. Mayor Strickland opened the Public Hearing. 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: (5 letters and 12 emails) Public Speakers — 7 The number [hh.mm.ss] following the speakers’ comments indicates their approximate starting time in the archived video located at http://www.surf-city-hb.org/government/agendas. John Silverman, Smart Link Representative, developers working with applicant AT&T for site acquisition, was called to speak and noted the primary purpose of this project is to serve the surrounding community. Mr. Silverman addressed some of the arguments presented against this project such as impact on property values, nesting birds, and noise. (02:33:26) Coral Jean Zeno was called to speak and expressed appreciation for some Councilmembers reaching out to discuss her concerns. She stated her opposition to this location and specifically shared her concerns about 5G being new technology. Ms. Zeno stated to the best of her knowledge Huntington Beach Community Church is the only entity that responded to the inquiry for locations, and that a Planning Commissioner had offered to facilitate discussions with other commercial property owners that would be interested in “easy money” by hosting the proposed facility. She noted that her internet service is fine, and stated this tower will be right in the middle of her line of site from her home. (02:35:43) City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 15 of 24 Unnamed Guest was called to speak and shared his opinion that City Council can deny this project based on family, safety, well-being and the environmental impact. He asked why suddenly this project is exempt from the California Environmental Quality Act. He expressed his frustrations at how a tie vote by the Planning Commission resulted in a ruling in favor of the applicant, rather than the negatively impacted residents like him. (02:38:16) David Gridley, a resident of Windy Sands Circle, was called to speak and shared his opinion that the Planning Commissioners seem very slanted in support of AT&T, as demonstrated by the fact that AT&T had unlimited time to present their side, but the affected homeowners were time limited. He believes that AT&T has been very disrespectful towards anyone who is opposed to this project, and doesn't believe AT&T put any time and effort to follow-up with other potential site owners. He also noted the high cost for the homeowners to fight this project and expressed frustration that City staff would side with AT&T rather than Huntington Beach residents. (02:41:38) Scott Boxley, a resident of Windy Sands Circle, was called to speak and stated his opposition to this unsightly and obstructive project. To the best of his knowledge cell towers should be at least 500 — 1,000 feet away from dense populations. He expressed his dismay that apparently the desires of the 24 nearby homeowners have no impact on the City's decision, and referenced documentaries he has seen describing the negative effects 5G may have on wild bee populations. (02:43:56) Jen Hwang was called to speak and noted this tower will be placed just 75 feet from her son's bedroom and their back yard. She shared her concerns for their health, esthetics of the tower and the impact on the value of their home. She stated this tower will be in the line of sight every time she looks out her windows. She doesn't know of anyone who would choose to live by a cell tower, even one that is poorly disguised as a tree. She asked if the huge open area at the corner of Slater and Beach was even considered as a location. Ms. Hwang noted that asbestos and Roundup are now known to be unhealthy, and asked why potential the long-term ramifications of 5G are not being even considered. She noted that while AT&T appears to have met the letter of the law, what about the spirit of the law? She shared her opinion that this project will negatively affect the quality of life for those Huntington Beach residents living close by. She encouraged Council to say no to something that is not necessary, and asked if the Harbor View tower could be taken down after the project was started, why this project can’t be stopped before it starts? (02:47:01) Ariel Strauss, Counsel for appellant Christina Price, was called to speak and stated this is not a complicated case, and not a problem of federal preemption. He added the City has full authority to impose their own standards and mandate that the Ordinance be fully complied with. Numerous previous federal court cases show that a failure to complete an application as required by an ordinance is a basis for denial. Mr. Strauss raised the issue of why AT&T did not consider co-locating with a roof-top antenna installation that is within 1,000 feet of the proposed tower location, on the tallest building at the intersection of Slater and Beach. He also noted that AT&T has not proven the proposed plastic tree tower is in compliance with the City's standards. (02:50:07) There being no more public speakers, Mayor Strickland closed the public hearing. Councilmember Burns invited Mr. Silverman, Smart Link Representative and Mr. Strauss, Counsel for appellant Christina Price, to the podium to participate in the discussion. Councilmember Burns, Mr. Silverman and Mr. Strauss discussed safe RF emission standards, which are determined by the FCC, not the local jurisdiction. Whether or not AT&T environmental regulations comply with FCC regulations is currently being reviewed by the FCC. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 16 of 24 Councilmember McKeon stated his support for local control, and his opposition to this installation location. He would like to focus on a solution by finding an alternate installation location and reviewed reasons the owners declined the opportunity at 11 different possible sites. Councilmember McKeon offered to assist in communicating with property owners who failed to respond, or responded negatively, and suggested this item be tabled so that the City can provide AT&T with more support for site location. City Attorney Michael Gates introduced Deputy City Attorney Connor Hyland who has more specialized expertise in these issues, and explained that federal regulations require that a city take action (either approval or denial) on a wireless facility application within 150 days, or by July 27 in this case. Councilmember Kalmick shared his opinion based on his former Planning Commission experience, and stated he sees this type of installation as infrastructure and believes if this item is denied then it will end up in federal court. Community Development Director Ursula Luna-Reynosa and Senior Planner Beckman provided an overview of the previous cell tower situation at Harbor View which was public property with Measure C considerations. City Council at that time denied approval. Councilmember Kalmick stated his concern that if this item is denied, it will result in the costs for a court case, and in the end the cell tower will still be built. Mayor Strickland noted that not one resident has expressed support for this cell tower, and understanding that denial or approval meets federal regulations for action, he supports further cooperative efforts to assist AT&T in finding another location. City Attorney Gates explained that next steps will be determined by AT&T's response to the decision City Council makes. He added that if AT&T agrees, the City can get an FCC shot clock extension beyond the 150 days, and the City Attorney’s Office would do whatever it takes for that process to proceed before the July 27 deadline. Appellant Counsel Strauss clarified that it is not the FCC that sues cities, but rather the applicant. He added that the Supreme Court has ruled that applicants cannot include legal fees in a settlement. He also noted that a Conditional Use Permit is the highest standard of analyses and provides the most discretion because of the recognition that cell towers have the worst impacts which should be mitigated whenever possible. Councilmember Bolton asked AT&T Representative Silverman if he thinks AT&T would cooperate with the City on efforts to review all site possibilities. Mr. Silverman responded it would be difficult to meet the deadline, would require a Tolling Agreement to postpone this decision to allow time for continued efforts, and AT&T always agrees to sign a Tolling Agreement. Deputy City Attorney Hyland confirmed that if there is no Tolling Agreement in place to extend the shot clock, and Council just postpones the decision rather than denying or approving, then the City would be in violation of FCC regulations. Councilmember Kalmick asked and Senior Planner Beckman confirmed that the Zoning Administrator conditionally approved the project on April 19, but that doesn't count as the final decision. Councilmember Kalmick stated his understanding that if for any reason a Tolling Agreement is not completed by the shot clock deadline, then the City is upside down. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 17 of 24 Mayor Strickland summarized options for City Council: 1) provide an action by denying the item, with the expectation that the Tolling Agreement will be signed before July 27, or 2) take no action with the expectation that the Tolling Agreement will be signed before July 27 and call for a Special Meeting to take action if it becomes clear a Tolling Agreement will not be signed by the July 27 deadline. Councilmember Kalmick asked for confirmation of the statement made by Appellant Counsel Strauss that if this situation was to go to court, AT&T could not ask for legal fee reimbursement in a settlement. City Attorney Gates replied he could not confirm that at this time. Appellant Counsel Strauss noted that a Tolling Agreement does not come without costs, and he doesn't think it is appropriate to just push this item down the road. The issues were presented in his letter of June 12, 2023, Planning Commissioners identified the same problems, and even offered to work with AT&T to review again alternate sites. Mayor Strickland stated Council's interest is to determine if it is possible to move this tower to a different location without exposing the City to litigation. City Attorney Gates clarified with Senior Planner Beckman that if another location is found, the approval process would start over because entitlements are site specific, but the new applicant and staff would be using the same premises, guidelines and findings as applied in this case. AT&T Representative Silverman stated he believes due diligence has been done by AT&T to locate an alternate location, and a Council decision to step back to that process is in his mind a denial of this project. He further stated there is no evidence the current plan violates any City or federal regulations; he has never had a previous situation where a city has helped AT&T find a project location, and it is unclear to him how that process would proceed. Councilmember McKeon stated Council is interested in proceeding with a Tolling Agreement which would allow more time for the City to provide resources and incentives to assist AT&T in finding another site, or potentially co-locate with an existing location. AT&T Representative Silverman stated that AT&T most likely would not sign a Tolling Agreement that includes the condition that another site must be found. He added that generally Tolling Agreements usually only address a time extension. Councilmember McKeon stated for the record that he will deny the project as presented because he believes AT&T has not sufficiently exhausted due diligence for selecting a location. Appellant Counsel Strauss shared his opinion that there are several questions to be asked: 1) Has AT&T considered all other wireless antennas within 1,000 feet of the proposed location, have they co- located where feasible? 2) Has AT&T demonstrated that the facility will not be detrimental to neighboring property values? He further stated his support for proceeding with a Tolling Agreement, and for the City to hire an expert to determine if those two overriding conditions have been met, as referenced in Paragraph A of the Wireless Communication Facility Ordinance which states that the City will require evidence from an expert in the field demonstrating the claimed gap in service and lack of feasible alternative sites. He further noted that the City has not consulted with an expert on these issues. Councilmember Kalmick confirmed with Senior Planner Beckman that there is no defined metric in the zoning ordinance to address how property values may be affected by a wireless facility. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 18 of 24 At 9:24 PM, Mayor Strickland announced a ten-minute recess at the request of Community Development Director Ursula Luna-Reynosa. Mayor Strickland reconvened the meeting at 9:34 PM, and asked Community Development Director Ursula Luna-Reynosa to proceed. She explained she believes there is a motion to uphold the appeal and deny the Conditional Use Permit (CUP), and noted that in order to deny, Council has to define which CUP finding cannot be met. Senior Planner Beckman read the three required findings and explained that it is staff’s interpretation that the proposed motion is that the third required finding for approving a CUP, namely the satisfaction of all applicable provisions in the Zoning Code, could not be met. Senior Planner Beckman clarified that there is an existing roof-mounted facility 840 feet due west of the subject site that was not identified in the application or staff report; staff did not believe that roof-mounted facilities were required to be considered for collocation when considering an application for a free- standing facility. Councilmember Kalmick stated he cannot support a motion to deny as he did not see any evidence presented tonight that would support this decision in court. He agreed that the situation "feels" like it might negatively affect property values, but he sees no evidence it would do so. A motion was made by Kalmick to find the proposed project exempt from the California Environmental Quality Act pursuant to Section 15303 of the CEQA Guidelines; and approve Conditional Use Permit No. 23-006 with findings and conditions of approval (Attachment No. 1), as amended to add a nesting study. With no second, the motion failed. A motion was made by McKeon, second Van Der Mark to deny approval of CUP 23-006 on account of being unable to make the required finding in Zoning Code Section 241.10 A. 3., "The proposed use will comply with the provisions of the base district and other applicable provisions in Titles 20 through 25 and any specific condition required for the proposed use in the district in which it would be located." The motion carried by the following roll call vote: AYES: Van Der Mark, Strickland, McKeon, and Burns NOES: Kalmick, Moser, and Bolton ADMINISTRATIVE ITEMS 18. 23-607 Adopted Resolution No. 2023-34 approving a Side Letter between the City of Huntington Beach and the City of Huntington Beach Management Employees’ Organization (MEO) Theresa St. Peter, Interim Human Resources Director, presented a PowerPoint communication titled Resolution 2023-34 Approving a Side Letter with the Management Employees' Organization with slides entitled: Overview; Fiscal Impact; City Council Options; and Questions? A motion was made by Strickland, second Kalmick to 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. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 19 of 24 The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 19. 23-580 Received and Filed Report on Future Development of 17642 Beach Blvd. Community Development Director Ursula Luna-Reynosa and Lieutenant/Manager, Police Department Community Outreach Bureau/Homeless and Behavioral Health Services Brian Smith presented a PowerPoint communication titled Future Development of 17642 Beach Blvd with slides entitled: Overview; History - Redevelopment; History - Dissolution; History - Housing Successor; Site Acquisition; Current Status; Development Concepts; Alternative Option; and Conclusion. Councilmember Burns and Development Director Luna-Reynosa discussed Tax Increment Financing (TIF), which no longer exists because the Redevelopment Agency was dissolved, and noted some of the tax increment financing that was formerly available continues to service those obligations. The discussion continued regarding who actually owns the properties developed by Jamboree Housing Corporation, which is an LLC set up by Jamboree, following the process which most developers use. Councilmember Burns stated he is trying to better understand how this system works, and explained he has trouble supporting programs that use taxpayer funds for low-income housing. Councilmember McKeon stated he feels the Healing Center is addressing issues that are the County's responsibility and the Be Well campuses in Irvine and Anaheim meet those needs. Therefore, he supports the Pathways Project which will continue to include the Navigation Center, ability to enforce anti-camping regulations, and will provide the most flexibility moving forward. Councilmember Moser stated her support for the Healing Center which she believes offers comprehensive options to address the needs of local residents experiencing homelessness, and also has the potential for funding from the County and CalAIM. She believes the Pathways Project is not as comprehensive. She expects that the Healing Center will result in better outcomes for transitioning people to stable housing from homelessness resulting in reduced long-term costs. She further stated her opinion that any investment in the Healing Center is actually an investment in the community and shows leadership in the fact that other communities are replicating what Huntington Beach has done. Councilmember Moser stated her support for looking to private industry to create opportunities to meet the needs where applicable. Councilmember Bolton stated her support of Councilmember Moser's comments for the Healing Center, and believes the Pathways Project is also a positive option. Councilmember Bolton and Lieutenant Smith discussed details involved in transporting an individual in need from Huntington Beach to an appropriate service provider. She noted that a "housing first" approach sometimes does not address the underlying issues, and the importance of addressing substance abuse and/or mental health underlying issues. Councilmember Kalmick stated support for the Healing Center option and acknowledged the County may bear the responsibility but unfortunately is not performing to meet the need. He believes the City needs to pick up the slack to assist the homeless population into becoming taxpaying members of society, and any program that presents options towards preventing increased criminal activity and people in prisons has his support. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 20 of 24 Councilmember McKeon clarified his previous statement and noted that Be Well has facilities in Anaheim and Irvine, works along with our Police Officers to address issues, build relationships with providers of supporting services such as sobering centers, and transitional supportive housing. He believes the Healing Center is duplicating Be Well's services, and supports the Pathways Project as providing the best option. Councilmember Burns shared his opinion that giving to the homeless and drug addicts, whether it be the County or the City, encourages those individuals to keep taking, and he doesn't think they should be a taxpayer burden. He believes people should be held accountable and be required to work for the assistance they receive. Councilmember Moser responded by encouraging all Councilmembers to read the recent evidence- based study on state-wide homeless issues which includes policy recommendations, and summarized this 94-page report. She offered to discuss this report further with Councilmember Burns to help him better understand that providing local services to support those struggling with housing needs, substance abuse or mental health issues will increase the well-being of the entire community. A motion was made by McKeon, second Strickland to receive and file this report; and provide direction to staff regarding future use of the Site (Pathways Project Development Concept). A substitute motion was made by Moser, second Kalmick to receive and file this report; and provide direction to staff regarding future use of the Site (Healing Center Development Concept). The substitute motion failed by the following roll call vote: AYES: Kalmick, Moser, and Bolton NOES: Van Der Mark, Strickland, McKeon, and Burns McKeon’s motion, seconded by Strickland to receive and file this report; and provide direction to staff regarding future use of the Site (Pathways Project Development Concept) carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None 20. 23-584 Middle-Income Housing Program Update Community Development Director Ursula Luna-Reynosa, introduced Ben Barker, Financial Advisor, Community Municipal Finance Authority, and Jordan Moss, Founder, Catalyst, who assisted in presenting a PowerPoint communication titled Middle Income Housing Program Update, with slides entitled: January 2021 Strategic Planning Session; What is the Middle Income Housing Program?; Public Benefit Valuation; Opportunity to Create Public Equity; Partners; ELAN and Breakwater; Supply Crisis; Income Gap; Mass Exodus; "Missing Middle"; Essential Housing; Immediate Impact; Case Study - Breakwater (2); and Case Study - Elan (2) and Questions. Councilmember McKeon thanked everyone for the excellent presentation, and reiterated his interest in understanding why a previous City Council would give up $500,000+ in property tax each year for a total of 35 years which is a total of $21M without providing an opportunity for voter input. Councilmember McKeon confirmed with Community Development Director Luna-Reynosa that Catalyst provided the answers to Councilmember concerns. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 21 of 24 There was discussion on why only 10% of the 380 units at Breakwater have been renovated in two years; Councilmember McKeon's concern regarding expected condition of the properties at 35 years; capital reserves accumulation; common area renovations that have been completed at Breakwater; current updated conditions at newly constructed Elan should not require major renovation in the near future; property management to provide current percent of residents that meet middle-income local workforce resident qualifications, or preferred tenants; low turn-over rates; non-displacement clause in the regulatory agreement; property management fees for each project; and none of the Elan retail space is rented out and the challenges that exist for that location. Councilmember McKeon read excerpts from an article posted at Forbes.com, dated December 2, 2021, titled California Scheming to describe how Mr. Moss and Catalyst, among others, are getting rich off California's housing affordability crisis. Councilmember Kalmick suggested that at least some of the retail units at Elan could potentially be converted to residential units. He stated this is a public policy discussion on ways to provide affordable housing without having to build anything, as a compromise between those who don't want any new building and the City's ability to help keep people housed. He confirmed with staff that approximately 50 — 60 existing tenants meet residency qualifications. Councilmember Kalmick stated that certain types of bonds are floated by the state, as well as municipalities, without voter approval. As an example, he referenced the Pension Obligation Bonds which saves millions of dollars each year and took advantage of very low interest rates. He thanked everyone for this important update, and noted that renter restrictions ended in May and acknowledged it does take time for the eviction process when tenants are not paying their rent. Councilmember McKeon confirmed with City Attorney Gates that there are no legal ramifications for reporting profile or Census data, without any personal information, for residents of these two projects. Councilmember McKeon requested that local workforce audit data be produced for these two properties. Staff confirmed that the audit will include statistics for current residents and new tenants will be included moving forward. Councilmember Moser shared her understanding that the local workforce preference was intended for new tenants, and she stated her interest in understanding the process used for determining applicants meet the tenant qualifications. She noted that these properties were available for sale, and if Community Municipal Finance Authority and Catalyst had not been successful in purchasing them, the tenants could have been facing up to a 10% rental increase and new tenants may have faced a 20% rental increase. She reiterated Community Development Director Luna-Reynosa's comment that this was an opportunity to preserve or maintain existing rental rates. Councilmember Moser shared her opinion that the residents benefiting from maintained, or lowered, rental costs are spending those savings within Huntington Beach. Mayor Strickland allowed time for Mr. Moss, Founder of Catalyst, to respond to the excerpts read by Councilmember McKeon from the California Scheming article posted at Forbes.com. In summary, Mr. Moss stated the original article which the Forbes article was reporting on, was written based on bad information by someone with no background or experience in publicly offered deals, and consisted of pure speculations. Mayor Strickland confirmed that the information requested during this meeting's discussion could be included in the next quarterly update. City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 22 of 24 A motion was made by Strickland, second Van Der Mark to receive and file. The motion carried by the following roll call vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, and Burns NOES: None At 11:00 PM, a motion was made by Strickland, second McKeon to continue the Council meeting beyond the hour of 11:00 PM. The motion passed with no objections. COUNCILMEMBER ITEMS 21. 23-622 Denied Item Submitted by Councilmember Bolton — Employee Recruitment and Retention Efforts Councilmember Bolton shared her interest in making the City attractive as an employer and belief we can't compete for employees on just dollars and cents. She stated her intent is to ask staff to research what types of "outside the box" incentives are offered by other municipalities. She stated that turnover is expensive, and during a time of qualified worker shortages, she is interested in ensuring Huntington Beach is as competitive as possible. A motion was made by Bolton, second Kalmick to 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. The motion failed by the following roll call vote: AYES: Kalmick, Moser, and Bolton NOES: Van Der Mark, Strickland, McKeon, and Burns 22. 23-633 Approved Item Submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon — Proposed Charter Amendment — City of Huntington Beach Real Property — Property Tax Councilmember McKeon introduced this item by stating that the Finance Commission has determined that the scope of workforce housing real estate investments such as Elan and Breakwater are outside of the City's primary investment objectives. He stated Huntington Beach Treasurer's investment policies are: 1) to ensure compliance with all federal, state and local laws governing the investment of public funds under the control of the City Treasurer; 2) protect the principal monies entrusted to this office; and 3) to achieve a reasonable rate of return within the parameters of reasonable risk management while minimizing the potential for capital losses arising from market changes or issuer default. Councilmember McKeon noted in a recent memo the Finance Commission observed that elected and appointed public officials owe a fiduciary duty to their citizens with regards to the officials handling of public money. In accepting their fiduciary duty, the City Council accepts a legal commitment to act in the best interests of the citizens. The Finance Commission has concluded that real estate investments that require the City to forego property tax collection for any particular property does not represent the best City Council PFA Regular Minutes Housing Authority Special Minutes July 18, 2023, Page 23 of 24 interests of the citizens, nor does it show prudent money management or prudent risk management. Moreover, any foregoing of property tax is an expense, or burden, to the taxpayers. Councilmember McKeon noted this amendment proposal is in response to a Finance Commission request. Mayor Pro Tem Van Der Mark shared her opinion it is in the best interests of Huntington Beach taxpayers to allow the voters a voice in these decisions. Councilmember Kalmick shared his concern that some of the language in the item seems rather vague, asked what could happen if the Mahler Act is invoked, and asked for a definition of "investment" property. He stated his opinion that this proposed action would not prevent further actions like Elan or Breakwater because the City does not own anything, but rather Council signed a Joint Powers Authority, a third party issued the bonds, and there is a disposition agreement. He further stated this item could potentially run against the Surplus Land Act, as well as create a barrier to building affordable housing. Councilmember Kalmick stated that if the intent is to prevent another Community Municipal Finance Authority (CMFA) project, staff should be asked to prepare an ordinance for that. Councilmember Kalmick stated his support for Part 2 of this item. Councilmember Bolton shared her understanding that Huntington Beach invested $10M or $11M in anticipation of in the end getting back $345M or $250M which results in a Return on Investment (ROI) of 3,500% and 2,500%. She asked how this could be considered not in the best interests of the residents. Councilmember McKeon replied that it should be up to the voters to determine whether or not it is a good deal, rather than having just seven Councilmembers making the decision. Councilmember Bolton noted the amount of time required for decisions by the voters may not allow for time-sensitive decisions to be made through that process. Councilmember McKeon acknowledged Councilmember Kalmick's concerns and stated his confidence that the Charter Ad Hoc Committee will take them under consideration. City Manager Zelinka confirmed with Councilmember McKeon that staff should work with the City Attorney’s Office and Community Development Department and others as needed to identify any other potential exceptions. Mayor Strickland, as a member of the Charter Ad Hoc Committee, stated the importance of including review of potential pitfalls with the City Attorney’s Office. Councilmember Moser stated her support for Part 2 of this item, and shared her recommendation that an experienced municipal property attorney be utilized during the process. City Attorney Gates responded that whenever needed legal expertise is not available in his office they always reach outside for it. Councilmember Moser shared her opinion this item did not need to come forward as an H Item, and stated her support for Councilmember Bolton's assertion that in some situations Councilmember nimbleness is required as Councilmembers were elected to make these kinds of decisions, and there are times when the nearly $1M special election costs are not justified.