The URL can be used to link to this page

Home My WebLink About2023-09-21 Special Agenda PacketIN-PERSON PUBLIC PARTICIPATION: Members of the public are welcome to attend City Council meetings in person. Alternate ways to view meetings live or on-demand include: livestreamed on HBTV Channel 3 (replayed on Wednesday at 10:00 a.m. and Thursday at 6:00 p.m.); live and archived meetings for on-demand viewing accessed from https://huntingtonbeach.legistar.com/calendar , https://bit.ly/SurfCityTV, or the City's YouTube Channel at https://www.youtube.com/cityofhb , or from any Roku, Fire TV or Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach channel. PUBLIC COMMENTS: Individuals wishing to provide a comment on agendized or non-agendized items including Study Session, Closed Session, and Public Hearing, may do so in person in the City Council Chambers by completing a Request to Speak form delivered to the City Clerk. SUPPLEMENTAL COMMUNICATION: Members of the public unable to personally participate in the meeting but interested in communicating with the City Council on agenda-related items are encouraged to submit a written (supplemental) communication to the Council via email at SupplementalComm@Surfcity-hb.org . Supplemental Communications are public record, and if received by 9:00 AM on the day of the meeting, will be distributed to the City Council prior to consideration of agenda-related items, posted to the City website, and announced, but not read, at the meeting. Communications received after the 9:00 AM deadline will be incorporated into the administrative record. Members of the public are also welcome to communicate with the City Council (and staff supporting Council) at City.Council@surfcity-hb.org . MEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact the City Clerk's Office at (714) 536-5227 for more information. AGENDA City Council/Public Financing Authority Thursday, September 21, 2023 Special Meeting Council Chambers 2000 Main Street Huntington Beach, CA 92648MAYOR AND CITY COUNCIL TONY STRICKLAND, Mayor GRACEY VAN DER MARK, Mayor Pro Tem RHONDA BOLTON, Councilmember PAT BURNS, Councilmember DAN KALMICK, Councilmember CASEY McKEON, Councilmember NATALIE MOSER, Councilmember STAFF AL ZELINKA, City Manager MICHAEL E. GATES, City Attorney ROBIN ESTANISLAU, City Clerk ALISA BACKSTROM, City Treasurer 1 AGENDA September 21, 2023City Council/Public Financing Authority 6:00 PM – COUNCIL CHAMBERS ROLL CALL Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns PLEDGE OF ALLEGIANCE INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 23-8091.Huntington Beach Police Chaplain Bob Ewing ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) ADMINISTRATIVE ITEM 23-8082.Presentation of potential Charter amendments proposed by Charter Ad Hoc Committee Members Strickland, Van Der Mark and Burns PUBLIC COMMENTS (90-Second Time Limit) At this time, the City Council will receive comments from members of the public regarding the consideration of potential charter amendments for the March 5, 2024, Statewide Primary Election. Individuals wishing to provide a comment may do so in person by filling out a Request to Speak form delivered to the City Clerk. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 90 seconds unless the volume of speakers warrants reducing the time allowance. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. While the City Council welcomes public involvement and supports and defends free speech, the City Council rejects comments from anyone that are discriminatory, defamatory or otherwise not protected free speech. Those comments will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt the public speaker. Such public comments will not be consented to or otherwise adopted by the City Council in its discussions and findings for any matter tonight. ADMINISTRATIVE ITEM Page 1 of 2 2 AGENDA September 21, 2023City Council/Public Financing Authority 23-8073. City Council discussion of potential Charter amendments proposed by the Charter Ad Hoc Committee and staff; opportunities to propose and discuss additional amendments to be considered for the March 5, 2024 Statewide Primary Election A) Discuss potential Charter amendments proposed by the Ad Hoc Committee and City staff; propose and discuss additional amendment as needed; and B) Receive and file this report. Recommended Action: PUBLIC COMMENTS (90-Second Time Limit) At this time, the City Council will offer the public additional opportunity to provide comments related to the discussion of potential charter amendments for the March 5, 2024, Statewide Primary Election. Individuals wishing to provide a comment may do so in person by filling out a Request to Speak form delivered to the City Clerk. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 90 seconds unless the volume of speakers warrants reducing the time allowance. ADJOURNMENT A special meeting of the Huntington Beach City Council will be held on Thursday, September 28, 2023, at 6:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, October 3, 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 2 of 2 3 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-809 MEETING DATE:9/21/2023 Huntington Beach Police Chaplain Bob Ewing City of Huntington Beach Printed on 9/20/2023Page 1 of 1 powered by Legistar™4 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-808 MEETING DATE:9/21/2023 Presentation of potential Charter amendments proposed by Charter Ad Hoc Committee Members Strickland, Van Der Mark and Burns City of Huntington Beach Printed on 9/20/2023Page 1 of 1 powered by Legistar™5 CHARTER COUNCIL AD HOC COMMITTEE SUMMARY Over the past couple months, the Charter Council Ad Hoc Committee met to discuss items to be contemplated by the larger Council for consideration for the March ballot. This was done at the City Council’s direction based on a City Council vote that occurred in June of this year. The Ad Hoc Committee first reviewed the 2022 ballot proposals of Measures L, M, and N. After review and some discussion, the Ad Hoc Committee saw that some of the ideas from 2022 made sense to include in the current proposals for the March 2024 election. Those will be discussed, along with other proposals brought by the Ad Hoc Committee, and other proposals suggested by Councilmembers at a Council Meeting in July. We want to give the public an explanation as to what the proposals meant to the Ad Hoc Committee and our reasons for recommendation. ELECTIONS Voter ID: this suggestion by the Committee was meant to align with the County’s current process for in-person voting. That is, before entering the voting booth, each in-person voter is asked his or her name and address for verification. The idea in this proposal is to simply require voters to show ID at the same time they are asked for their name and address. This idea is not to suggest the City take on its own elections, but rather, to merge into, or enhance, the current County practice of verifying voters. Addition of Polling Locations: this suggestion of 20 new residential locations by the Committee was meant to only add to in-person voting opportunities. Many voters have complained that since the proliferation of mail-in voting, physical in-person polling locations have disappeared thereby forcing them to mail-in their vote. We want to increase in-person voting opportunities. Inquiries to the County Registrar about logistical or support concerns for these proposed additional locations has been met with no objection. No response, but no objection either. Drop Box Monitoring: this suggestion by the Committee was meant to build confidence in the drop box voting method. Currently, the County does not 6 provide monitoring of ballot drop boxes and with the stories and concerns seen in past elections, the Committee suggests monitoring either by person, camera, or whatever technology and/or resources allow. This is not meant to discourage or replace mail-in voting and it is not meant for the City to take on conducting elections. CITY ATTORNEY The proposals by Councilman McKeon were presented at a Council Meeting in July of this year in response to the presentation that Mr. Gates gave at City Council outlining some of the concerns created between the role and authority of City Council over legal matters in 2021 and 2022. To be clear, the suggested changes do not give the City Attorney anything new, the proposed changes only clarify the role of the City Attorney. The suggested Charter changes do the following: strike the vague language in Section 304 that (as a matter of law) is presently inconsistent with State law on the attorney-client relationship. The proposed modification to Section 304 clarifies the City Attorney and City Council roles by relying on prevailing State Law and the State Bar of California, i.e., that the City Attorney represents the City in all legal matters and proceedings and that City Council, the Board of the City Corporation, make strategic legal decisions related to litigation and other legal matters. The proposed changes to Section 309 again clarify that the City Attorney decides what resources the City’s legal department needs to effectively represent the City in all legal matters. Similar to the Long Beach City Charter, this proposal makes clear that the elected City Attorney is the designated attorney for the City by the people and therefore the exclusive legal counsel of the City, as decided by the voters. The final proposal adds guardrails such that the City Attorney, elected by the people, is allowed to continue with the legal work for the City. There have been two instances in recent Huntington Beach history in which the City Council essentially defunded the departments of other elected officials. It occurred to the Elected Treasurer’s Department in 2010, which was recently restored and rebuilt by this City Council; and in 2012, before Mr. Gates was elected to office in 2014, the City Council undertook to try to “outsource” the City Attorney’s Staff to a law firm, thereby defunding the Elected City Attorney’s Department. Protecting our 7 Elected City Clerk, City Treasurer, and City Attorney departments from possible City Council defunding is important. Finally, the changes to Section 309 make it clear that the City Attorney is the protector of the City’s attorney-client and attorney work-product privileged material, unless there is a City Council vote to disclose such material. This too is consistent with State law. These proposals are aimed at cleaner, better, more functional government. CITY CLERK Qualifications: this suggestion by the Committee was meant to increase the participation of our community in the City Clerk’s race. In 2010, a Charter Amendment for the very first time in the City’s history required the Clerk to have a “Bachelor’s Degree in Business, public administration, or related field,” yet, there is no such thing as a Bachelor’s Degree in Business. There is a Bachelor of Science in Business Management or a Bachelor of Science in Business Administration, but that is not what is currently spelled out in the Charter. In fact, our current Clerk does not have a Bachelor’s in Business. A review of other city charters throughout California shows that no other city charter requires a four-year college degree to run for City Clerk. To be clear, no other city, among California’s 121 charter cities, requires a four-year degree. Moreover, beyond the two most recent Clerks, there is no information to confirm that any previous City Clerk had a four-year degree. Because the City’s educational requirement acts as a bar to participation by others in the community, and because such a requirement does not make sense to the City Clerk position, and because Huntington Beach is an anomaly as the only City with such a requirement throughout the entire State of CA, the Committee recommends striking it. INVESTIGATIONS OF MALFEASANCE This proposal by Councilman McKeon was presented at a Council Meeting in July of this year and was prompted by the presentation that Mr. Gates gave at City Council outlining some of the concerns created by an outside “independent investigation” requested by the 2020 City Council. The propriety of that investigation has been brought into question and the facilitating of an investigation of an Elected Official by outside counsel or City staff is also inappropriate. Elected Officials are hired by the people of the City by virtue of the 8 election. Those Elected Officials, whether Council Members, City Treasurer, or City Attorney, are not subject to City staff, nor should Elected Officials’ emails and other materials be searched and read by City staff or outside counsel hired by friendly City Councilmembers or friendly City Managers. Investigations should be conducted right, done by another outside agency in order to remove any conflicts of interest and remove any potential for political wrangling or misdeeds. This proposal is aimed at cleaner, better, more functional government. FLAGS This suggestion by the Committee was meant to provide Charter authority for the City’s current Flag Flying Policy. It provides exceptions for Olympic Flags and any other Flag the City Council votes to fly by unanimous consent. BIENNIAL BUDGET This suggestion by the Committee was meant to make preparing the budget easier for staff, but also to build in more predictability and better planning for future expenses and opportunities to identify revenue streams. CLERK AND TREASURER ELECTION CYCLE This suggestion by the Committee was meant to align the City Clerk and Treasurer elections with the City Attorney in the gubernatorial cycle. PROPERTY TAX REAL ESTATE TRANSACTIONS This proposal by Councilman McKeon was presented at a Council Meeting in July of this year to address concerns that the City had engaged in real-estate transactions, or real-estate related transaction in 2020-2021 in which the taxpayers are estimated to forego approximately $500,000 in property tax revenue per year. The voters should decide whether transactions should be entered into by the City in which property tax revenue is foregone. MEASURE C UPDATE This suggestion by the Committee is borrowed from the 2022 Charter proposals and is meant to update Measure C to be more flexible and permissible for park and beach improvements such as improving and upgrading restrooms, and installing new playground equipment, making repairs to playground 9 equipment, improvements to playground equipment, and the like. When Measure C passed many years ago, it was a citizen-driven ballot initiative. It was not drafted by City staff and approved by a City Council for the ballot. As such, reading and interpreting Measure C has always presented challenges. Measure C, based on previous interpretations is highly restrictive and tied the hands of the City to keep our parks and beaches children-friendly, safe, and aesthetically appealing. CANCELLATION OF MEETINGS This suggestion by the Committee is borrowed from the 2022 Charter proposals, which makes sense to cancel Council Meetings if need by in a proper, orderly, and efficient way. 10 11 PROPOSED CHARTER AMENDMENTS BY TOPIC TOPIC CHARTER SECTIONS PAGE Elections 702, 705 (new) 1 City Attorney 304.309 2 City Clerk 310 5 Investigations 314 (new) 6 Flags 806 (new) 7 Biennial Budget 401,601,602,603,604,605 9 Clerk, Treasurer 300 11 Election Cycle Property Tax Waiver 618 (new) 12 Measure "C" 612 13 Cancellation of Meetings 303 15 12 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH ELECTIONS Section 702. PROCEDURE FOR HOLDING ELECTIONS. All elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, for the holding of municipal elections, so far as the same are not in conflict with this Charter. In the event of such conflict, the provisions of this Charter shall control and prevail, in accordance with Section 103 of this Charter. Section 705. SPECIAL PROVISIONS RELATING TO MUNICIPAL ELECTIONS For all municipal elections, "Elector" means a person who is a United States citizen 18 years of age or older, and a resident of the City on or before the day of an election. The City shall verify the eligibility of Electors by voter identification. Beginning in 2026, the City to provide at least 20 residential voting locations for in-person voting dispersed evenly throughout the City, in addition to any City facility voting locations. The City shall monitor ballot drop boxes located within the City for compliance with all applicable laws. As in Section 300, the City Charter shall determine the term of the City's elective officers, the length of term, and the election cycle in which the election for those offices occur for the City's elective officers. 13 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH CITY ATTORNEY Section 304. QUORUMS, PROCEEDINGS AND RULES OF ORDER. (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time. In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at least twenty-four hours before the time to which the meeting is adjourned, or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns. Each member of the City Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience of such subpoenas, or the refusal to testify ( upon other than constitutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are punishable. The City CouF1eil shall have emrtrol of all legal busifless aHd proeeediflgs afld all property of the legal department, aHd may employ other attorneys to take eharge of or may eofltraet for afl)' proseeutiofl, litigatiofl or other legal matter or busifless. ( c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other person for disorderly conduct at any of its meetings. Upon adoption of any ordinance, resolution, or order for payment of money, or upon the demand of any member, the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such under the laws of the State of California, shall have been engaged in the practice oflaw in this State for at least five years prior to their election or appointment. The City Attorney represents the City of Huntington Beach, a Chartered City under the Constitution of the State of California and a Municipal Corporation. The elected City Attorney is, by virtue of the election, designated by the people as the City's exclusive legal counsel. The City Attorney may hire, contract, and/or appoint outside contract attorneys and/or such in-house deputy or deputies to assist or act for the City Attorney, at such salaries or compensation as the City Council may by ordinance or resolution prescribe: 2 14 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS 8TR1KETHROUGH provided that the employ of attorneys to assist the City Attorney in the execution of his or her duties is the exclusive purview of the City Attorney. Neither the City Council, the City Manager, nor any other City Official or department may hire their own attorneys, consult with. attempt to contract with attorneys for services. or obtain other/outside legal opinions, without the prior express written consent of the City Attorney. Because of the unique nature of the City Attorney's work at the pleasure of the electorate, and in order to protect the City Attorney's work from political interference, neither the compensation of the City Attorney nor the City Attorney's annual budget or any aspect thereof shall be reduced by the City Council from year to year unless approved by a four-fifths majority of the total members of the City Council, but in no event shall any such reduction exceed 3% in a year and from the previous year. The City Attorney shall have the power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute, unless otherwise provided by the City Council. ( c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or former City officer or employee, in any or all civil actions or proceedings in which such officer or employee is concerned or is a party for any act arising out of their employment or by reason of their official capacity. ( d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. ( e) Approve in writing the fonn of all contracts made by and all bonds and insurance given to the City. (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. (g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (i) Surrender to their successor all books, papers, files, and documents pertaining to 3 15 the City's affairs. PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH G) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. (k) Provide advice related to compliance with the City Charter to all elected and appointed officials of the City. (I) Keep, maintain, and protect all City confidential attorney-client privileged, and attorney work product privileged information. Such confidential information shall not be accessible to any other City Official, City Staff, or third party, unless the City Attorney authorizes such access or the City Council votes to authorize such access by majority vote. (m) Additions to Section 309 of this Chai1er, if approved by the voters at the March 5, 2024 election, shall take effect on January 1, 2027. 4 16 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH CITY CLERK Section 310. CITY CLERK. POWERS AND DUTIES. To become and remain eligible for City Clerk, the person elected or appointed shall have a Bachelor's Degree in business, publie administration, or a related field, and hold a certification as a Municipal Clerk or obtain such certification within the first three years in office. The City Clerk shall have the power and shall be required to: (a) Attend all meetings of the City Council, unless excused, and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in records that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate records, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. ( c) Maintain separate records of all written contracts and official bonds. ( d) Keep all records in their possession properly indexed and open to public inspection when not in actual use. (e) Be the custodian of the seal of the City. ( f) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor, unless the City Council, has availed itself, or does in the future avail itself, of the provisions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. (h) Have charge of all City elections. (i) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. (j) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. The City Clerk may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. 5 17 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH INVESTIGATIONS Section 314. INVESTIGATION OF MALFEASEANCE To avoid potential conflicts of interest and political interference, any allegation of malfeasance, wrongdoing or misconduct against an elected official of the City, shall not be investigated by the City, any other City Official, or member of City Staff. Rather, such allegations shall be referred to the Orange County District Attorney, the California Attorney General, the Fair Political Practices Commission, or other appropriate higher level government agency. 6 18 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH FLAGS SECTION 806. DISPLAY OF FLAGS. Except as otherwise provided herein, the City shall only fly or display at or on any of the City's properties the following flags: the American flag, the POW/MIA flag, the State of California flag, the Huntington Beach City flag, the County of Orange flag, or any of the flags of the six branches of service: the Army, Navy, Air Force, Coast Guard, Marine Corps, and Space Force. During the Summer Olympic Games, the Mayor is authorized to order the display of the official Olympic flags for four weeks prior to the dates of the games, and for up to two weeks thereafter. The City may display any other flag in addition to those already enumerated, but only if authorized by a unanimous vote of all members of the City Council. 7 19 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH BIENNIAL BUDGET Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City Manager shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers and the Chief of Police. The Chief of Police shall not be appointed or removed until the City Manager shall first have reviewed such appointment or removal with the City Council and have received approval for such appointment or removal by a majority vote of the full City Council. (b) Prepare the budget as required by this Charter anmmlly, submit it to the City Council, and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. ( d) Keep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. ( e) Maintain a centralized purchasing system for all City offices, departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for, purchase, inspection, storage, inventory, distribution and disposal of all supplies, materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City, the provisions of this Charter and the ordinances, franchises and rights of the City. Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees, and prescribe such general rules and regulations as deemed necessary or proper for the general conduct of the administrative offices and departments of the City under their jurisdiction. (h) Perform such other duties consistent with this Charter as may be required by the City Council. 8 20 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS 8TRlKETHROUGH Section 601. BIENNIAL A.Nl'IUAL BUDGET, PREPARATION BY THE CITY MANAGER. At such date as the City Manager shall determine, each board or commission and each department head shall furnish to the City Manager, personally, or through the Director of Finance, estimates of the department's, board's or commission's revenue and expenditures for the ensuing two fiscal year~, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. BIENNIAL ANl'IUAL BUDGET. SUBMISSION TO THE CITY COUNCIL. The City Manager shall submit the proposed budget to the City Council at least thirty days prior to the beginning of each even numbered fiscal year beginning in 2026. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each even numbered fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603. BIENNIAL 1\Nl'IUAL BUDGET. PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity. Section 604. BIENNIAL ANl'IUAL BUDGET. FURTHER CONS ID ERA TION AND ADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing two fiscal year~. Copies thereof, certified by the City Clerk, shall be filed with the City Manager, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. BIENNIAL ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; provided, however, that the City Manager 9 21 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the second fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. 10 22 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH CLERK, TREASURER ELECTION CYCLE Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The elective officers of the City shall consist of a City Council of seven members, a City Clerk, a City Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terms of four years and until their respective successors qualify, unless otherwise provided in this Charter. Subject to the provisions of this Charter, the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter. Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter. No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive term. Subject to the provisions of this Charter, the City Clerk, City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective tenns and the qualification of their successors. A City Clerk and City Treasurer shall be elected for a term of six years at the general municipal election held in 2024. , 1968, and each fourth year thereafter. A City Attorney, a City Clerk, and a City Treasurer shall be elected in 2030 +966, and each fourth year thereafter. The term of each member of the City Council, the City Clerk, the City Treasurer and the City Attorney shall commence on the first Monday date of the first regular City Council meeting following the certification of the election. Ties in voting among candidates for office shall be settled by the casting of lots. If no candidate meets the qualifications for office of the City Clerk, City Treasurer, or City Attorney, the City Council shall fill that position by appointment until the next municipal general election in which a qualified candidate is elected. 11 23 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH PROPERTY TAX COLLECTION SECTION 618. VOTER APPROVAL REQUIRED FOR MATTERS AFFECTING THE COLLECTION OF PROPERTY TAX. No transaction that forgives, waives or foregoes the collection of property tax by the City in excess of $100,000.00 per year shall be approved, unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. This section shall not apply to transactions related to the acquisition of property for public parks: or to transactions related to the acquisition of property for infrastructure, as defined in Section 61 ?(a) of this Charter. 12 24 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH MEASURE "C" UPDATE Section 612. PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes ofat least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment, conceptual cost estimate, and reasonable project description has been completed and widely disseminated to the public. Effective January 1, 2011, and each year thereafter, the maximum cost will be adjusted by the Consumer Price Index for the Los Angeles-Riverside- Orange County area. (c) Section 612(a) and 612(b) shall not apply; (1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; -the contract is to perform an act or provide a service in a public park or beach AND -such act was being performed or service provided at the same location prior to January 1, 1989 AND -the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to aboveground public works utility structures or public restrooms under 6,000 ~ square feet; (4) to underground public works utility structures if park or beach use is not impeded; (5) to any public works construction, maintenance or repair mandated by state or federal law that does not negatively impact recreational opportunities; 0f (6) to renewable energy projects that do not negatively impact recreational opportunitiesc; or 13 25 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH (7) to new children's playground facilities or equipment in any park; or to replacement children's playground facilities or equipment in any park or beach, provided that the square footage of such replacement children's playground facilities or equipment is not increased by more than 100% during any ten year period. ( d) If any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect. 14 26 PROPOSED CHARTER AMENDMENTS BY TOPIC ADDITIONS SHOWN AS UNDERLINED DELETIONS: SHOWN AS STRIKETHROUGH CANCELLATION OF MEETINGS Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at least twice each month, unless it lacks a quorum or the meeting is canceled by the Mayor or a majority of City Council Members, at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor, or by a majority of the members of the City Council, by written notice to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such notice must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted. No other business shall be considered at such meeting. If any person entitled to such written notice files a written waiver of notice with the City Clerk, it may be dispensed with. This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes. In the event of an emergency affecting the public peace, health or safety, a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tern in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tern provided that the nature of the emergency is set forth in the minutes of the meeting. ( c) Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned. If, by reason of fire, flood or other emergency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor, or, ifhe should fail to act, by a majority of the members of the City Council. (d) Open Meetings. All regular and special meetings of the City Council shall be open and public, and all persons shall be permitted to attend such meetings, except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings, no person shall be denied the right to be heard by the City Council. ( e) Dissemination of Information. The City Council shall adopt rules to ensure thorough and timely dissemination of information via current technology by resolution. 15 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:23-807 MEETING DATE:9/21/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Al Zelinka, City Manager PREPARED BY:Catherine Jun, Deputy City Manager Subject: City Council discussion of potential Charter amendments proposed by the Charter Ad Hoc Committee and staff; opportunities to propose and discuss additional amendments to be considered for the March 5, 2024 Statewide Primary Election Statement of Issue: NOTE: A PDF version of this report is attached, in the event that the tables and images do not display properly on the reader’s screen. On September 5, 2023, City Council authorized four Special Meetings scheduled on September 14, 21, 28 and October 5 to gather public feedback and consider potential Charter amendments. During the first meeting, City Council received public feedback and also requested impact analyses for potential amendments, including those proposed by the Ad Hoc Committee and staff, which are outlined in this report. Financial Impact: On September 5, 2023, staff provided initial estimates to place the three initially proposed ballot measures on the March 2024 Primary Election. After conducting additional research and conferring in depth with the Orange County Registrar of Voters (ROV), the staff is providing a closer estimate as follows: Projected Cost Range Includes Consolidated Election $318,928 $383,128 Cost of the consolidated election, postage for vote by mail ballot returns, cost recovery for the purchase of any new election equipment 3 Ballot Measures (as previously discussed on 9/5/23) $51,000 $76,500 Based on the number of pages required for each measure at $8,500 per 2 pages and 3,000 words (the range on the left is based on 4-6 pages per measure) Total $369,928 $459,628 Recommended Action: A) Discuss potential Charter amendments proposed by the Ad Hoc Committee and City staff; propose and discuss additional amendment as needed; and City of Huntington Beach Printed on 9/20/2023Page 1 of 17 powered by Legistar™27 I I I I - I I ' I I 1 J J _J File #:23-807 MEETING DATE:9/21/2023 B) Receive and file this report. Alternative Action(s): Do not approve one or more recommended action; direct staff accordingly. Analysis: During the first Special Meeting on September 14, City Council requested impact analyses for potential amendments proposed by the Ad Hoc Committee, which are outlined in the order they appear in the Charter: Section 300.Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: Per Charter Section 300, four Council Members and the City Attorney are elected at large in the midterm or gubernatorial election cycle, once every four years during even years, including 2022, 2026 and so forth. Similarly, the remaining 3 Council Members, City Clerk, and City Treasurer are elected at large in the City of Huntington Beach Printed on 9/20/2023Page 2 of 17 powered by Legistar™28 Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The e lective o fficers of the City shall consist of a City Council of seven members, a City Clerk, a C ity Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in thi s Charter and who shall serve for terms of four years and witil their respective successors qualify. unless otherwise provided in this C harter. Subject to the provisions of this Charter, the members of the City Coun ciJ in office at the time this Charter takes effect shaJ I contiirue in office until the expiration of t h eir resp ecti ve t erms and until their successors are elected and qualifi ed. Four members of the City Council shall be elected at the general municipa l e lection held in 1966, and each fourth year thereafter. Three members of the City Council shall be e lected at the general munici pal election held in 1968, and each fourth year thereafter. N o person shall be elected as a m ember of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a tenn to which some other person was elect ed a member shall be elected to the C ity Council more than one further consecutive term. Subject to the provi sions. of thi s Charter, the City Clerk, City Treasur er and City Attorney in office at th e t ime this Chai.ter takes effect shall contin ue in office un61 the expiration of their respective terms and the qua lification o f their successors . A City Clerk a nd City Treasu rer shall be elected fo r a term of six years at the general m unicipal e lection held in 2024 . , 1968, and each :fuu:rth: yeat theren!ler; A City Attorney, a City C lerk. and a City Treasurer shall be elected in 203 0 +%e; and e,ach fomth year thereafter. The term of each member of the City C-0unc il , the City Clerk, the City Treasurer and t he City Attorney shall commence on the ti:rst MOflE!:ay date of the first reguJar City Council meeting fo ll owing the certification of the election. Ties in voting among candidates fot office shall be settled by the casting of lots. If no cancli date m eets the qualifications for office of the City C lerk, City Treasurer, or C ity Attorney, the City Cou ncil shall fill that position by appointment until the next mu nicipal general election in which a qualified candidate is elected. File #:23-807 MEETING DATE:9/21/2023 Presidential election cycle once every four years in alternating even years that include 2024, 2028, etc. The proposed Amendment would move the City Clerk and City Treasurer elections from the Presidential to the gubernatorial cycle beginning in 2030, increasing the total number of elected positions on that cycle from 5 to 7 total. The Presidential election cycle would then only have 3 elected positions on the ballot. The overall effect of the amendment is outlined in the table below. However, the impacts are inconclusive at this time. Election Year Current Charter Proposed Amendment 2020 (Presidential Cycle)5 elective offices on the ballot for: City Council (3),City Clerk,City Treasurer 2022 (Gubernatorial Cycle)5 elective offices on the ballot for: City Council (4)City Attorney (1) 2024 (Presidential Cycle)5 elective offices on the ballot for:City Council (3),City Clerk* and City Treasurer**These positions would be elected to a 6-year term for this cycle only and would permanently revert to a 4- year term in 2030. 2026 (Gubernatorial Cycle)City Council (4)City Attorney 2028 and every 4th year thereafter (Presidential Cycle) City Council (3) 2030 and every 4th year thereafter (Gubernatorial Cycle) City Council (4)City Clerk City Treasurer City Attorney The final proposed amendment in Section 300 would adjust the commencement date of a new Council Member’s term from the first Monday to the first Council Meeting following certification of election. This is partly an administrative change, as the City Council has moved its meetings from Mondays to Tuesdays. Furthermore, since the first Monday could arguably occur before certification, the amendment would assure that the election results are certified first. Preliminary Fiscal Analysis: There are no known significant fiscal impacts at this time. Section 303(a).Recommended by the Ad Hoc Committee on 8/1/23 City of Huntington Beach Printed on 9/20/2023Page 3 of 17 powered by Legistar™29 File #:23-807 MEETING DATE:9/21/2023 Preliminary Operational Analysis: Per the Charter, City Council must hold meetings at least twice per month. However, meetings cannot be held without a quorum, as governed by the California Brown Act. The amendment references this quorum to clarify this exception to the two-meeting rule. The amendment also permits the Mayor or majority of Council Members to cancel meetings. As part of this amendment, the City Council could consider outlining the circumstances or limiting the number of cancelations per year in an ordinance, resolution, or the Council Manual for greater clarity. Preliminary Fiscal Analysis: There are no known fiscal impacts associated with this amendment. Section 304(b).Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: Per the City Attorney’s Office, striking the final sentence in Section 304(b) clarifies the attorney-client role(s) between the Office and the City Council, and makes it more consistent with State law that defines the attorney- client relationship. Preliminary Fiscal Analysis: There are no known fiscal impacts. Section 309.Recommended by Council Member McKeon on 8/1/23 City of Huntington Beach Printed on 9/20/2023Page 4 of 17 powered by Legistar™30 Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. TI1e City Council shall hold regular meetings at least twice each month, unless it lacks a quorum or the meeting is canceled by the Mayor or a majori ty of City Council Members. at such time as it shall fix by ordinanc,e or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall b e a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjoumment, such meeting shalJ be held at the hour for holding regular meetings. If at any time any regular meeting faJls on a holiday such regular meeting shall be held on the next business day. (b) Proceedings . T he City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns . Each member of the City Council shall ' ,, 8fl8 :proeeedings and all prop erty of thee legal d0p0:rtmtmt, and may employ othcr a#en9:e,,s lie take ehB£ge et: er may contract for aey prosoo:utio~ Litig,atisa or other legal m.tHtel' or business . before it. Subpoenas shall be issued in the name of the City and be attested by the Clly uerl<. They shall be served and complied with i n the same manner as subpoenas in civil actions. Disobedience of such subpoenas, or the refusal to tes tify (upon other than constitutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are punishable. The Ci,ey Council shall have eal'ltroJ of all legal lffls.mese File #:23-807 MEETING DATE:9/21/2023 City of Huntington Beach Printed on 9/20/2023Page 5 of 17 powered by Legistar™31 Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such under the laws of the State of California, sh.all have been engaged in the practice of law in this S tate for at least fi ve years prior to their election or appointment. T he City Attorney represents the City of Huntington Beach, a Chartered City under the Con stitution of the State of California and a Municipal Corporation. The elected City Attorney is, by virt1.1e of the election, designated by the people as the City's exclusive legal counsel. The City Attorney may hire , contract2 and/or appoint outside contract attorneys and/or such in-house deputy or deputies to assist or act for the City Attorney, at such salaries or compensation as the City Council may by ordinance or resolution J>rescribe; provided that the employ of attorneys to assist the City A ttomey in the execution of his or her duties is the exclusive purview of th e City Attorney. Neither the City Council, the City Manag~ nor any other City Official or department may hire their own attorneys, consult with, attempt to contract with attorneys for services, or obtain other/outside lega l opinions, without the prior exp1·ess written consent of the City Attorney . Because of the unique n ature of the City Attorney's work at the pleasure of the electorate, and in order to protect the City Attorney's work from political inte1{erence, neither the compensation of the City At torney nor the City Attorney's annua1 budget or anv asped thereo f shall be reduced by the City Council from year to year unJess approved by a four-fifths majoritv of the total members of the City Counci I, but in no event shall any such reduction exceed 3 % in a year and from the p revious year. The City Anoi:ney shall hav e the power and may b e required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices . (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provis io ns of this Charter or of City or din ances and such state misdemeanors as the City has the power to prosecute, unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in 'Which the City :is concerned or is a party, and represent and appear for any City officer or employee, or File #:23-807 MEETING DATE:9/21/2023 Preliminary Operational Analysis: Per Council discussion held on 8/1/23, the intent of this Amendment is to prevent retaliation by a Council majority upon any of the 3 elected Charter officers and his/her compensation or department budget. The City’s financial projections show that the City will run into a General Fund deficit starting next fiscal year (i.e., 2024-2025). To balance the budget based on projections, the City has asked each department to proactively reduce their expenditures by an average of 2-10%. However, the proposed amendment regarding the City Attorney’s compensation and Office’s budget establishes a hard floor that limits downward adjustments without a four-fifths (6 out of 7) Council votes. In the event the budget can be reduced, the maximum reduction would be up to 3%. Per the City Attorney, the remaining changes would clarify the City Attorney’s powers and duties consistent City of Huntington Beach Printed on 9/20/2023Page 6 of 17 powered by Legistar™32 former City officer or employee, in any or al l civil actions or proceedings in which such officer or employee is concerned or is a party for any act ari sing out of their employment or by re.a.son of their official capacity. (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form of all contracts m ade by and all bonds and insurance given to the City. (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. (g) Devote such time to the d uties of their office and a.t snch place as may be specified by the Ci ty Council. (h) Perform such legal functions and duties incident to the execution of the fotegoing powers as may be neces sary. (i) Surrender to their successor all books, papers, files, and documents pertaining to the City's affairs. (i) Assist and cooperate with the City Manager consistent w ith Section 403 of the City Charter. (k) Provide advice related to compliance w1th the City Charter to all elected and appointed officials of the City. (l) Keep, maintain. and protect all City confidential attorney-client priv ileged, and attorney work product privileged information. Such confidential information sh all not be acc-essible to any other City Official , City Staff: or third party, unless the City Attorney authorizes such access or the C1ty Council votes to a uthorize such access by maiority vote. Cm) Add itions to Section 309 of this Charter, if approved by the voters at the March 5, 2024 election, shall take effed on January 1, 2027 . File #:23-807 MEETING DATE:9/21/2023 with State law and require all privileged communications remain inaccessible by any City official or third party without City Attorney or City Council approval. Lastly, the Amendments to Section 309 would not take effect until January 1, 2027. The City Attorney’s Office states that this effective date is not required by law; rather it is to avoid a potential legal challenge by anyone who may believe that the changes are to benefit the current City Attorney. Preliminary Fiscal Analysis: In all, the fiscal impact cannot be determined at this time. However, establishing a hard floor in the CAO budget or the City Attorney’s compensation may require City management to find cost savings in other departments or reduce services. Section 310.Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: The elected City Clerk position in Huntington Beach serves as a department head and the City’s elections official. The Clerk operates a department that includes records/archive management, election services, passport services, claims administration, agenda management, public records request management, and FPPC filings. The position also manages a staff of 5 full-time staff and 4 part-time staff. There are also 11 California charter cities with elected city clerks - whether serving a ceremonial role or as a department head. Staff reviewed their educational requirements (if any) as listed in their individual charters, municipal codes, job descriptions or websites. Out of the 11 charter cities (not including Huntington Beach), the education requirements for the Clerk position are as follows: ·One city (Redondo Beach) included educational requirements directly in the charter; four other cities had educational requirements listed on their municipal code or websites. Six additional cities did not have any educational requirements, and the remaining two cities are unknown at this time. ·Existing educational requirements ranged by City: o “Four-year college degree in finance or business related field” (Carlsbad, Municipal Code) o “Some college work in public administration and/or business administration. (Glendale, website) o “At least 15 units completed at a collegiate institution in the accounting field, either in residence or in extension, or in a recognized private school of equal educational standards.” (Redondo Beach, Charter) o “Combination of education and experiencing equivalent to completion of an Associate of Arts Degree in Public Administration, Business Administration, or related field.” (Santa Clara, Santa Maria, website requirement) For additional context, Orange County cities (including both charter and general law cities and mostly appointed Clerks) have educational requirements, whether the Clerk is elected or appointed. 23 out of 31 Orange County cities that provided staff with information on the job requirements reference a Bachelor’s or four year equivalent in Business Administration, Public Administration, Public Policy or Records Management. 25 out of 31 cities include the phrase “or related field”. (Three Orange County cities did not provide information about their job requirements.) City of Huntington Beach Printed on 9/20/2023Page 7 of 17 powered by Legistar™33 Section 3 10. C ITY CLERK. POWERS AND DUTIES . To become and remain e ligib le for City C le rk, the person e lected or appointe,d shall have a Bachelor 's Degree in business, puelie administration, 0r a Fekrted field, and hold a certification as a Mw1icipaJ Clerk or obtain such certification within the first three years in of fice. The City Clerk shaJI have the power and shall be required to: File #:23-807 MEETING DATE:9/21/2023 Preliminary Fiscal Analysis: There are no known fiscal impacts associated with this amendment. Section 314 (NEW).Recommended by Council Member McKeon on 8/1/23 Preliminary Operational Analysis: Today, if the City receives such an allegation against an elected official, the Human Resources Department may hire a third-party investigator to conduct an investigation. However, this amendment would require the City to refer the allegation to a higher-level government agency such as the Orange County District Attorney. The complainant has the recourse of suing the elected official and/or the City. Preliminary Fiscal Analysis: There is a degree of liability, risk of lawsuits, cost of attorney fees, and/or settlements that would yield a yet to be determined fiscal impact. Section 401(b) & Sections 601-605.Recommended by the Ad Hoc Committee on 8/1/23 City of Huntington Beach Printed on 9/20/2023Page 8 of 17 powered by Legistar™34 Section 314 . INVE STI GATION OF MALFEASEANCE To avoid potential c onflicts of interest and political interference) any allegation of malfeasance, wrongdo in g or mi sconduct against an eJected official of the City, shalJ not be investigat ed by the City, any other City O ffi cial, or member of City Staff Rather, such aUegation s shall be referred to the Orange County District Attorney , the Califorofa A ttorney GeneraL the Fair Political Prac tices Commission. or other approp riate higher level government agency. Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City Manager shall be responsible to the City Council for the proper administration of all affairs of the City . Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be require d to : (a) Appoint, promote, demote, suspend or remove depai1ment heads, officers and employees of the City except elective officers and the Chief of Police. The Chief of Police shall not be appointed or removed until the City Manager shall first have reviewed such appointment or removal with the City Council and have received approval for such appointment or removal by a majori ty vote of the full City Council. (b) Prepare the budget as required by this Chaiier oonually, submit it to the City Council, and be responsible for its administration upon adoption . File #:23-807 MEETING DATE:9/21/2023 City of Huntington Beach Printed on 9/20/2023Page 9 of 17 powered by Legistar™35 At such date as the Ci(y Mamige.r sb.aU detenn,ine,. ea.ch board o:r commission and each deparlmenl head shall furnish to the City Mana.ger, persona:Uy) o:r through. th -Manee rnreeter Ch_e ._ I•inan ial Off cer1 estimates of the department s, borurl s or commissio: 's revenue and e ·pc:ndilures for the en ·ujn:g ~ fiscal y r §:, d!eta.i.Jed in ~uch numn r as may b presc 'bed by the ity Manager. In pr,epari:ng th· propooe<l budget the i.ty Manager shall r vi w the stimates. hold conference thereon \.\'ith the respective departmeot heads, bomds or commissions as neces ·ary, aud may revise the: estimates as m y be d -med advisable . The City Manager shaJI. sub it th p-ropo ed budset to the CLy CounciJ at Jeast Onrty ays prior to the beginning of each cveJl numbered fiscal year lwdnning in 2026. Aft~ reviewing the propooed budget and making suc:h re isfons as it may deem advisable, the City Council shal] hold a public headng thc.reoni at least fftccn days prior to t h.e beginning of each even numbered fi ca[ year and shall cause to be pu1 ]ished a notice thereof not less than ten days prio fo id he:ufog. · opi ofthe pr posed hudg,et shal b . availaM for inspection by ?he pub]ic jn the office of the ity C]erk at ],east ten days prior to said hearing. ection 603. BIENNIAL ANNY-AI,, BUDGET. PUBLI HEARING . At the ime-so advertised or a t any time to wh:ich such public hearing shall rr-0m tim to time be adjourned, the , ity Council shaH hold a public heating ,on · ,h propo • budg t, at hich i tcrestcd persons desiring to be heard shall be giv,en such oppo:rtunity. cctio11 604 . B] ANN~'d:, BUDG T. FURT IER CO ADOPT i .. At the conclu :i.on of th pub ic hearing the City Cou .en shal ·urther consider the proposed budget and make.any r1.:vis·ons thereof that it nay d.eem advisable and on or before the Last day of th fi . a[ y,ear i shaiU adopt lhc budget with re · isions if any by lhe .:1ffirmative vo:te of at kast a majorhy o the total members oflhc Council. Upon final adoption. th · budg l shaU in effect or t.he ensuing. m:2 fiscal year~. Copies mereof, cetti.lled by the CHy Clerk, shall be fl _d w·th the i'ty Manager F-i+laAee rnr-ee~r Ch"efFinancfol Officer, City ·treasurer and ·he person n:taincd by the ity Council. to pc fonn the post audi( function and .a furthe copy shall be placed, and ·foll]] remain o tile in tlle office of the ity Clerk where il shall be aivaib1bJe for File #:23-807 MEETING DATE:9/21/2023 Preliminary Operational Analysis: The amendments would transition the City from an annual to a biennial budget, starting in Fiscal Years 2026-2028. There is precedence for two-year budgets in Orange County; half of the 10 largest cities in Orange County (not including Huntington Beach) utilize biennial budgets. There are also known advantages and disadvantages of a biennial budget. Advantages may include reduced staff time from undertaking an intensive six-month budgeting process every year. It also encourages the City to plan strategically and longer term, particularly for larger projects and initiatives. Disadvantages may include longer range forecasting of revenues and expenditures further into the future; and more extensive budget amendments or mid-cycle reviews and adjustments that may potentially eliminate time savings in year 2. The Chief Financial Officer is supportive of a biennial budget. However, there will be operational impacts from implementing process changes that require updates to budget forms and document pages to account for the second year; updates to the accounting software; staff training; a new format for the mid-cycle update and adjustments; and criteria and process to carryover funds between years 1 and 2. The Finance Department would likely need to begin after the approval of this Amendment in order to kick off the budget planning season starting Fall 2025, while simultaneously developing the remaining annual budgets for FY 2024-25 and FY 2025-26. Lastly, the amendment proposes one administrative change to retitle the Finance Director to Chief Financial Officer, which is the title used commonly today and matched with the City’s organizational chart. Preliminary Fiscal Analysis: The primary fiscal impacts will be the hours of staff time required to implement the process changes across all 12 City departments, conduct public engagement on this major change, and potential costs to make changes to the City’s accounting software. The required staff hours will not be known until a plan is identified to transition the budget. City of Huntington Beach Printed on 9/20/2023Page 10 of 17 powered by Legistar™36 public inspection. The budget so certified shall be reproduced and copies made available for the us e of the public and of departments, offices and agencies of the City. Section 605. BIENNIAL ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become approp1iated to the several departments, offices and agencies for foe respecti ve objects and purposes therein named ; provided, however, that the City Manager may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lap se at the end of the second fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of t he City Council. File #:23-807 MEETING DATE:9/21/2023 Section 612. City of Huntington Beach Printed on 9/20/2023Page 11 of 17 powered by Legistar™37 Section 612 . PUBLIC UTILITIES AND PARKS A D BEACHES. {a) o public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a maj or ity of the electors voting on such proposition at a general or specia l election at which such proposition is submitted. (b) No go lf course, dri ving range, road, building over three thous and square feet in floor area nor structure costing more than $16 1,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of t he electors voting on such proposition at a ge neral or special election at which such proposition is submitted after the appropriate environmental assessment, conceptual cost estimate, and reasona ble project description has been completed and widely disseminated to the p ub lic. Effective January 1, 2011, and each year thereafter, the maximu m cost will be adjusted by the Consumer Price Index for the Lo s Angeles-Riverside- Orange County area . (c) Section 612{a) and 612(b) shall not apply ; ( l ) to libraries or piers; (2) t o any lease. franchise, concession agreement or other contract where; -the contract is to perform an act or pl'ovide a serv ice in a public park or beach AND -such act was being performed or service provided at the same location prior to Janu ary 1, 1989 AND -the proposed lease, franchise, conces sion agreement or other contract would not incl'e ase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to aboveground public works u ti l ity structures or pubbc restrooms under 6 000 ~ square feet ; File #:23-807 MEETING DATE:9/21/2023 Recommended by the Ad Hoc Committee on 8/1/23: Preliminary Operational Analysis: Section 612, also known as Measure C, was a voter initiative that was approved by voters during the November 1990 General Election and was incorporated into the Charter thereafter. Measure C requires majority voter approval on matters involving the following, with some exemptions: o Sale, lease, transfer or exchange of park and beach lands in Huntington Beach o Construction of certain private and public developments on these lands This proposed amendment would add to the list of current exemptions: public restrooms under a certain size, above ground public works utility structures under a certain size, new playground facilities or equipment in parks; and replacement playground facilities or equipment under certain sizes. These amendments would permit staff to provide these amenities without the added cost of a ballot measure, which would facilitate the process and deliver them to the public at an accelerated rate. Preliminary Fiscal Analysis: Currently, Measure C requires the City to produce a “shovel ready project” by completing a conceptual design, all design documents, construction documents, and pertinent environmental studies, prior to placing a park or beach project on a ballot measure. The cost of each component may vary significantly (upwards of a million dollars) and often take on a percentage of the final total project cost. For the purposes of a general fiscal analysis, the average cost, per acre, of each phase of the project is listed below, and includes additional data for an anticipated 6% increase in costs in 2024: Project Phase Average Per Acre Cost (2023) Average Per Acre Cost 6% Escalation (2024) Conceptual Design $5,340 5,661 Design Cost $13,949 $14,786 Construction Documents $44,463 $47,131 Construction $508,390 $538,893 City of Huntington Beach Printed on 9/20/2023Page 12 of 17 powered by Legistar™38 (4) to underground public works utility structures if park or beach use is no t impeded; (5) to any pub)i c works construction maintenance or repai r mandated by state or federal law that does not nega tively impact recreat ional opportunities ; er (6) to renewable energy proj ects that do not negatively im pact recreational opportunities-:; or (7) t o new children ~s playgro und facilities or equipme nt in any park; or to replacement children's playground fac iliti es or equipment in any park or beach, provided that the square footage of such replacement children's playground facilities or equipment is not increased by more than I 00% during any ten year p eriod. (d) If any sect ion , subsection, part, su bp art, paragraph, cla us e or phrase of th is amendment, or any amendment or revisi on of th is amendment, is for any reason held to be invalid or unco nstit utional, the remaining sections, sub sect ions, part s, subparts, paragraphs. clauses or phrases shaH not be affected but shall remain in fu ll force and effect. File #:23-807 MEETING DATE:9/21/2023 Project Phase Average Per Acre Cost(2023)Average Per Acre Cost 6%Escalation (2024) Conceptual Design $5,340 5,661 Design Cost $13,949 $14,786 Construction Documents $44,463 $47,131 Construction $508,390 $538,893 This estimate does not include any costs to place the project on a ballot measure, which is an added cost. Playgrounds average $110 per square foot in 2023, and $117 per square foot in 2024, with the anticipated 6% escalation in costs. Recommendations from City staff Based on staff experience working on public projects within the guidelines of Measure C, a few recommendations are listed for consideration: ·Amend Section 612(a) to: 1) remove the dollar threshold ($161,000 adjusted for CPI) that triggers Measure C, as most projects exceed that value today or 2) no longer require the environmental assessment, conceptual cost estimate and construction documents to be completed prior to a Measure C vote; these items will still be prepared and presented to the public and City Council for a thorough review. Project construction would be contingent only after obtaining approvals for all items. ·Amend Section 612(a) to clearly define “structure” and its minimum square footage, as it is not defined in the Charter. Determine if structure also includes flatwork such as pickleball and other sports courts. This would clear up ambiguity about which projects qualify under Measure C. ·Amend Section 612(c) to add public restrooms as an exempted project; remove any square foot thresholds, as many projects such as restrooms and public works utilities exceed 3,000 square feet. Section 618 (NEW).Recommended by Council Member McKeon on 8/1/23 Preliminary Operational Analysis: The amendment will require City Council and voter approval in order to engage in investment transactions between the City and a property owner that may yield over $100,000 in property tax exemptions. As a matter of background, when the City purchases property, it becomes property tax exempt so long as it is used for public purposes; as such, the amendment carves out exemptions for transactions in which the City acquires property for public parks or infrastructure, as defined in section 617(a) (see below). This would limit the amendment’s applicability on City operations, as it relates to these matters. City of Huntington Beach Printed on 9/20/2023Page 13 of 17 powered by Legistar™39 SECTION 618. VOTER APPROVAL REQUIRED FORMATTERS AFFECTING THE COLLECTION OF PROPERTY TAX. No transaction that forgives. waives or foregoes the collection of property tax by the City in excess of $100,000 .00 per year shall be approved, unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirm ative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. This section shall not apply to transactions relate d to the acquisition of property for public parks: or to transactions related to the acquisition of property for infrastructure. as defined in Section 617(a) of this Charter. File #:23-807 MEETING DATE:9/21/2023 Section 617(a): The term “Infrastructure” shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways. Staff noted that the definition above does not include water infrastructure (i.e. water lines, reservoirs, etc.). In addition, the phrase “beach facilities” could be generalized to include all “recreational facilities” which are also viewed as infrastructure. Other considerations not covered in the exemptions may include the acquisition of buildings not used for public purposes. An example may be to acquire a commercial property that is leased out to businesses that would pay possessory interest taxes, but not property taxes; as such, staff is uncertain if the amendment would apply to these types of transactions. Another possible exemption for consideration would be transactions implementing the Zoning and Subdivision Code, as such transactions do not involve a direct City financial subsidy or investment. An example would be Zoning and Subdivision Code Section 230.26 commonly referred to as the Inclusionary Housing Ordinance under which developers of residential projects must satisfy affordable housing requirements. Should a developer choose to create affordable housing units to satisfy this requirement, the City Council should be authorized to approve implementing agreements between the City and the developer as approved by the City Attorney’s office. Preliminary Fiscal Analysis - The current property tax rate is 1.09391% of an assessed property value. For every dollar of property taxes remitted to the County Assessor’s Office, 16% is distributed to the City. Given this formula, only properties with an assessed value of equal to or higher than approximately $57 million in the City’s General Fund tax rate area (TRA) would yield property taxes of $100,000 or greater directly for the City of Huntington Beach. Based on our most current tax information, only 24 properties (residential, commercial, and industrial) fall in this category. These would be among the known properties that could trigger the amendment, if the owner and the City propose to enter into a transaction that results in excess of $100,000 in property tax exemptions. However, it should be noted that the $100,000 tax threshold is a static number that does not adjust or respond to current market conditions. If property values continue to trend upwards and the threshold does not adjust accordingly (for example, with the use of a CPI adjuster or a more appropriate method), the number of properties that may trigger this amendment will steadily increase from the current list of 24 properties. Section 702 & 705 (NEW).Recommended by the Ad Hoc Committee on 8/1/23 City of Huntington Beach Printed on 9/20/2023Page 14 of 17 powered by Legistar™40 File #:23-807 MEETING DATE:9/21/2023 Preliminary Operational Analysis Per the Ad Hoc Committee, the amendment envisions that the City would implement the proposed changes while still consolidating elections with the County Registrar of Voters (ROV). In this scenario and with the current number of registered voters, the ROV would continue to provide eight ballot drop box locations with vote by mail (VBM) options, three 11-day in-person Vote Centers at major City facilities, and ten 4-day in person Vote Centers at both local and smaller city facilities. The minimum number of Vote Centers is predetermined by an Elections Code formula and identified in the County’s Election Administration Plan which will be updated in 2025. However, the City would need to provide poll voters to verify id, request an additional 10 Vote Centers and install video cameras to monitor the drop boxes. City of Huntington Beach Printed on 9/20/2023Page 15 of 17 powered by Legistar™41 Section 702. PROCEDURE FOR H OLDING ELECTIONS. AU elections shall be held in ac c ordance \: ith the provisions of the E lections Code of the State of California, as the same now exists or hereafter may be amended, for the ho lding of municip al election , so far as the s ame are not in c onflict w1th thi s Charter. In the event of such conflict. the pmvisions of this Charter sha1J contro l and ,12reva iL in accordance with Sec tion 103 of this Charter. Sectio n 705 . SPECIAL PROVIS IO NS RELAT ING TO MUN IC I PAL ELECTION For all municipal elections, "Elector" m ea ns a pe rs on who is a United Sta tes citizen 18 ye ars of age or o lde r, and a resident o f 1he City on or before the day of an e lection. T he C ity shall verify th e eligibility of Electors bx vo ter identification . Beginning in 2026, the City to provide at least 20 residentia l voting locations for in-person voting disp ersed e ,enly throughout the City, in addition t o any City fa cility voting locations. The City shaH monitor baJlo t drop box es located with in the C ity for compli a n ce with all appli cable Jaws. As in Section 30 0. the City Charter shall determine the tenn of the itv's el e{;tive offic ers, the le ngth of term , and the e le ction c ycle in which the election for those o ffices occur for the City's elective officers. Sect ion 702 . PROCEDURE FOR H OLDI G ELECTIO S. All elections shall be held in accordance v ith th e provisions of the Election s Code of the State of California, as the same now exists or hereafter may be amended , for the ho lding of munic ip al elections, so far as the same are not in conflict with thi s Charter. In the event of such conflict. the p rovisions of this Charter shaJJ contro l and prevail, in accordance with Section l 03 of this Charte r. Section 705. SPECIAL PROVISIO NS REL ATING TO MUNICI PAL ELECTIO N For all municipal elections, "Elector" means a. pe rs on who is a United States citize n 18 years of age or o lder, and a re s ident o f the City on or before the day of an e lection. The City shall verify th e e li2ibility of Electors bx voter identification. Beginnin g in 202 6. the City to provide at least 20 residential voting loca tions for in-person voting disp ersed even ly throughout the City, in addition t o any C ity faci lity voting locations. The Cicy shall monitor ballo t drop boxes located within the City for complian ce with a ll applica ble laws. A s in S ection 300. the C it y Charter shall determine the te1m of the City's el ective officers , the le ngth of term , and the election c ycle in which the election for those offices occur fo r the City's elective officers. File #:23-807 MEETING DATE:9/21/2023 The City has inquired with the ROV about whether the County would allow City poll workers to conduct voter id verification at the County’s Vote Center and whether the County would consider providing additional Vote Centers above and beyond what it provides now. On September 20, the ROV stated that it cannot comment on these proposals. In the event the ROV does not accept the City’s proposal and does not consolidate elections, staff has conducted a very preliminary cost analysis for one City standalone election. The initial startup cost for items such as equipment is $664K - 858K; the recurring or operating costs to hold each election is $689K - $832K. This is based on figures from other municipalities that have recently conducted standalone elections but scaled for Huntington Beach and its number of registered voters. Preliminary Fiscal Analysis Should the City eventually obtain an affirmative response from the County, the amendment would require the City to consider the following costs related to this amendment. The City would need to provide poll workers at each ROV Vote Center to verify voter identification; this would likely require recruitment costs, training and hourly wages at a rough cost estimate of $69,000. In regards to the cost of the additional ten 4-day in-person Vote Centers that will help achieve the total 20 residential voting locations described in the amendment - the ROV did not provide a cost estimate. The ROV stated that it is not their practice to bill jurisdictions on a Vote Center by Vote Center basis. If they are authorized by the County to provide the additional Vote Centers, the cost would be billed proportionately to all participating jurisdictions based on a formula that takes the number of voters per jurisdiction into account. This cost cannot be known at this time. In regards to drop box monitoring, the City may be able to install 24-hour video cameras on buildings within proximity to each drop box. If a building is located on private property, staff would need to negotiate an agreement to mount a video camera on the property. At this time, one firm offers video monitoring for approximately $2,500 per location including camera equipment and installation for 24-hour access. Based on that, the City would anticipate incurring at least $20,000 plus additional unknown cost related to the agreements. The City was advised by the ROV to further consult with the City Attorney regarding the legality of local monitoring of ballot drop boxes. Consolidated Election with ROV Proposed Charter Amendments Anticipated Additional Costs VBM Ballot Drop Box locations 8 Added monitoring with 8 security cameras $20,000 plus unknown cost for related agreements 4-day in-person Vote Centers (local & small City facilities) 10 Add 10 additional Voter Centers; Voter ID verification -related costs Cost for 10 additional Vote Centers is unknown. $9,000 for Voter ID monitoring (recruitment, training, hourly wages) 11-day in-person Vote Centers (major City facilities) 3 Voter ID verification -related costs $60,000 for Voter ID monitoring (training and hourly wages The added costs in the table would be in addition to the consolidated election cost with the ROV for election services currently estimated at approximately $318,928 to $383,128. Adding any ballot measures would be an additional cost as well. City of Huntington Beach Printed on 9/20/2023Page 16 of 17 powered by Legistar™42 File #:23-807 MEETING DATE:9/21/2023 Section 806 (NEW).Recommended by the Ad Hoc Committee on 8/1/23. Preliminary Operational Analysis: There are no known operational impacts at this time. It should be noted that the amendment allows the City to fly additional flags not listed in the proposed amendment, if it is authorized by unanimous vote of the City Council. Preliminary Fiscal Analysis: There are no known fiscal impacts at this time. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachments: 1.PDF version of the report City of Huntington Beach Printed on 9/20/2023Page 17 of 17 powered by Legistar™43 SECTIO. 806. DISPLAY OF FLAGS. Except as otherwise provided herein. the City shalJ only fly or displ ay at or on any of the Citr's properties the follow ing fl ags: th e American flag. the PO W/MIA flag. the State of California flag. the Hun tington Beach City t1ag, the County of Orange flag. or any of the flags of the six branches of service: the Army, Navy, Air Force, Coast Guard, Marine Corps, and Space Force. During the Swnmer Olympic Games , the Mayor is authorized to order the display of the official Olympic fla gs fo r four weeks prior to the dates of t he games, and for up to two weeks thereafter. The City m ay d.isp lav any other flaa; in additi on to tho se already enumerated, but o nly if authorized by a unanimou s vote of all members of the City Council. 1 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Al Zelinka, City Manager PREPARED BY: Catherine Jun, Deputy City Manager Subject: ..title City Council discussion of potential Charter amendments proposed by the Charter Ad Hoc Committee and staff; opportunities to propose and discuss additional amendments to be considered for the March 5, 2024 Statewide Primary Election ..body Statement of Issue: NOTE: A PDF version of this report is attached, in the event that the tables and images do not display properly on the reader’s screen. On September 5, 2023, City Council authorized four Special Meetings scheduled on September 14, 21, 28 and October 5 to gather public feedback and consider potential Charter amendments. During the first meeting, City Council received public feedback and also requested impact analyses for potential amendments, including those proposed by the Ad Hoc Committee and staff, which are outlined in this report. Financial Impact: On September 5, 2023, staff provided initial estimates to place the three initially proposed ballot measures on the March 2024 Primary Election. After conducting additional research and conferring in depth with the Orange County Registrar of Voters (ROV), the staff is providing a closer estimate as follows: Projected Cost Range Includes Consolidated Election $318,928 $383,128 Cost of the consolidated election, postage for vote by mail ballot returns, cost recovery for the purchase of any new election equipment 3 Ballot Measures (as previously discussed on 9/5/23) $51,000 $76,500 Based on the number of pages required for each measure at $8,500 per 2 pages and 3,000 words (the range on the left is based on 4-6 pages per measure) Total $369,928 $459,628 Recommended Action: ..recommendation A) Discuss potential Charter amendments proposed by the Ad Hoc Committee and City staff; propose and discuss additional amendment as needed; and B) Receive and file this report. ..end Alternative Action(s): Do not approve one or more recommended action; direct staff accordingly. 44 2 Analysis: During the first Special Meeting on September 14, City Council requested impact analyses for potential amendments proposed by the Ad Hoc Committee, which are outlined in the order they appear in the Charter: Section 300. Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: Per Charter Section 300, four Council Members and the City Attorney are elected at large in the midterm or gubernatorial election cycle, once every four years during even years, including 2022, 2026 and so forth. Similarly, the remaining 3 Council Members, City Clerk, and City Treasurer are elected at large in the Presidential election cycle once every four years in alternating even years that include 2024, 2028, etc. The proposed Amendment would move the City Clerk and City Treasurer elections from the Presidential to the gubernatorial cycle beginning in 2030, increasing the total number of elected positions on that cycle from 5 to 7 total. The Presidential election cycle would then only have 3 elected positions on the ballot. The overall effect of the amendment is outlined in the table below. However, the impacts are inconclusive at this time. Election Year Current Charter Proposed Amendment 45 Section 300 . CITY COUNC IL, AT TORNEY, CLERK AND TREASURER . TERMS . The electi ve officers of tJ1e City sh all consist of a City Council of seven members, a City Clerk, a City T reasurer and a C ity Attomey, a11 to be elected from the City at large at the times and in the m a nn er provided in thi s Charter and who shall serve for terms of four years and until their respective successors qualify, unle~s otherwis e provided in this Charter. S ubj ect to the provisions of this Charter, the members of the City CounciJ in office at the time this Charter takes effect shall contii1 ue i n office until the expiration of t heir re spe ctive t erms and until their successors are elected an d qualified. Four members of the City Council shall be el e cted at the general municipal e lec tion held in 1966, and each fourth year thereafter . Three members of the City Council shal I be elected at the general munic ipa l election held in 1968, and each fourth year thereafter. No perso n shall be electe d as a member of the City Cou nc il for more th an two consecutive terms and no perso n who ha s been a member for more than two years of a term to which some other person was elected a m ember shall be elected to the C ity Co uncil more than one further consecutive term. Subject to the p rovisions of thi s C harter, the C ity Clerk, City Tre as ur er an d City A ttorney in office at the t ime t h is Ch,uter takes effect shall continue in office un.til the expiration of t heir respective te rms and the qua li ficatio n o f their successors . A City Clerk and City Treasurer shall be e lected fo r a te rm of six years at the general m unicipal election h eld in 2024. ) 1968 , an d each fo urth year thereruler: A City Attorney, a City Clerk. and a City Treasurer shall be elected in 203 0 ~ and e-ach fomth year thereafter. The term of eac h member of the City C-0unc il, the City Clerk, the Ci ty Treasurer an d t he City Attorney shall commence on the t1rat ~ date of the first regular C ity Council meeting fo llow ing the certificati on of the election. Ties in voting among candidates for office shall be sett led by the cast in g of lot s . lf no candid ate mee ts the quali fi catio ns for office of the C ity C lerk, City Treasurer, o r C ity Attorney, the C ity Council shall fill that position by appointment unti l the n ext mu nicipal general election in which a qualified c andidate is e lecte d . 3 2020 (Presidential Cycle) 5 elective offices on the ballot for: City Council (3), City Clerk, City Treasurer 2022 (Gubernatorial Cycle) 5 elective offices on the ballot for: City Council (4) City Attorney (1) 2024 (Presidential Cycle) 5 elective offices on the ballot for: City Council (3), City Clerk* and City Treasurer* *These positions would be elected to a 6-year term for this cycle only and would permanently revert to a 4-year term in 2030. 2026 (Gubernatorial Cycle) City Council (4) City Attorney 2028 and every 4th year thereafter (Presidential Cycle) City Council (3) 2030 and every 4th year thereafter (Gubernatorial Cycle) City Council (4) City Clerk City Treasurer City Attorney The final proposed amendment in Section 300 would adjust the commencement date of a new Council Member’s term from the first Monday to the first Council Meeting following certification of election. This is partly an administrative change, as the City Council has moved its meetings from Mondays to Tuesdays. Furthermore, since the first Monday could arguably occur before certification, the amendment would assure that the election results are certified first. Preliminary Fiscal Analysis: There are no known significant fiscal impacts at this time. 46 4 Section 303(a). Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: Per the Charter, City Council must hold meetings at least twice per month. However, meetings cannot be held without a quorum, as governed by the California Brown Act. The amendment references this quorum to clarify this exception to the two-meeting rule. The amendment also permits the Mayor or majority of Council Members to cancel meetings. As part of this amendment, the City Council could consider outlining the circumstances or limiting the number of cancelations per year in an ordinance, resolution, or the Council Manual for greater clarity. Preliminary Fiscal Analysis: There are no known fiscal impacts associated with this amendment. Section 304(b). Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: Per the City Attorney’s Office, striking the final sentence in Section 304(b) clarifies the attorney-client role(s) between the Office and the City Council, and makes it more consistent with State law that defines the attorney- client relationship. Preliminary Fiscal Analysis: There are no known fiscal impacts. 47 Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. TI1e City Council shall hold regular meetings at least twice each month, unless it lacks a quorum or the meeting is canceled by the Mayor or a majority of City Council Members, at such time as it shall fix by ordinanoe or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjow-nment and when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shaU be held at the hour for ho1ding regular meetings. If at any time any regu lar meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Proceedings. T he City Council shall judge the qualification of it s members as set forth by the Charter. It shall judge all election returns . Each member of the City Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and t o compel the prod uc tion of evidence before it. Subpoenas shall be issued in the name of the City and be a ttested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience o f such subpoenas, or the refusal to testify (upon other than const itutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are pnnishable . The Ciey Council shall ha,,,•e eoatrol o f all legal b1:l5ifless ftftQ 13roeeedings and all property of th e legal dspartffleai, and may ernpkiy other atf:0-Hleys to take oh1Hge a f or may contract for any prosoouae~ Litigatien et other legal ll:lfrl;t,e r or busiRess . 5 Section 309. Recommended by Council Member McKeon on 8/1/23 48 Section 309. CITY ATTORNEY . POWERS AND DUTJE . To become and remain eligible for City Attorney the person elected or appoi nted sha11 have graduated from a taw school accredited by the American Bar Associatio~ be an attorney at law, duly licensed as such under the laws of the State of California shall have been engaged in the practice of law in 1his S tate for at least fi ve years prior to their election or ap pointment. T he ity Attorney represents the City of Huntington Beach. a Chartered City under the Co nstitution of the State of California and a Municipal Corporation. The elected City Attorney is, by virtue of the election, de ignated by the peo ple as the City's exclusive legal counsel. The City Attorney m.ay hire, contract, and/or appoint outside contract attorneys and/or such in-house degutv or deputies to ass ist or act for the City Attorney, at such salaries or compensation as the City Counci l may by ordinance or resolution prescribe; provided that the employ of attorne ys to assist the City Attorney in the execution of his or her duties is the exclusive purview of th e City Attorney. Neither th e City Council, the City Manager, nor any other City Official or department may hire their own attorneys, consult with, attempt to contract with attorneys for services, or obtain other/outside lega l opinions, without the prior express written consent of the City Attorney. Because of the uni9 ue nature of the City Attorney's work at the pleas ure of the electorate, and in order to protect the City Artomeis work from political interference, neither the comm;nsation of the City Attorney nor th e City Attorney's annual bud get or any aspect there of shall be reduced by the City Council from year to year unless approved by a four -fifths majority of the total membe rs of the City Counci I, but in no event shall any such reduction exceed 3 % in a year and from the previous year. The City Attorney shall have the power and may be require(! to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices . (b) Prosecute on behalf of the people any or all crimi nal ca es arising from violation of the provis ions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute, unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all action s or pro ceedings in which the City is concerned or is a party, an d represent and appear for any City officer or employee, or 6 Preliminary Operational Analysis: Per Council discussion held on 8/1/23, the intent of this Amendment is to prevent retaliation by a Council majority upon any of the 3 elected Charter officers and his/her compensation or department budget. The City’s financial projections show that the City will run into a General Fund deficit starting next fiscal year (i.e., 2024-2025). To balance the budget based on projections, the City has asked each department to proactively reduce their expenditures by an average of 2-10%. However, the proposed amendment regarding the City Attorney’s compensation and Office’s budget establishes a hard floor that limits downward adjustments without a four-fifths (6 out of 7) Council votes. In the event the budget can be reduced, the maximum reduction would be up to 3%. Per the City Attorney, the remaining changes would clarify the City Attorney’s powers and duties consistent with State law and require all privileged communications remain inaccessible by any City official or third party without City Attorney or City Council approval. 49 former City officer or employee in any or all civil actions or proceedings in which such officer or employee is co11cerned or is a party for any act arising out of their employment or by reason of their official capacity . (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form o f all contracts made by and all bonds and insurance given to the City. (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. (g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of t he foregoing powers as may be necessary. (i) Surrender to their successor all books, papers, files, and documents pertaining to the C ity's affairs. 0) Assist and cooperate with the City Manager consistent with S ect ion 403 of the City Charter. (k) Provide advice related to compHance with the City Charter to all elected and appointed officials of the City. (1) Keep, mai nta in. and protect all Ci ty confidential attorney-client privileged, and attorney work product privileged information . Such confidential information shall not be accessible to any other City Official, City Staff~ or thi rd party, unless the City Attorney authorizes such acce s or the City Council votes to authorize such access by majority vote. (m) Add itions to Section 309 o f this Charter. if approved by the voters at the March 5, 2024 election, s hall take effect on January: 1. 2027 . 7 Lastly, the Amendments to Section 309 would not take effect until January 1, 2027. The City Attorney’s Office states that this effective date is not required by law; rather it is to avoid a potential legal challenge by anyone who may believe that the changes are to benefit the current City Attorney. Preliminary Fiscal Analysis: In all, the fiscal impact cannot be determined at this time. However, establishing a hard floor in the CAO budget or the City Attorney’s compensation may require City management to find cost savings in other departments or reduce services. Section 310. Recommended by the Ad Hoc Committee on 8/1/23 Preliminary Operational Analysis: The elected City Clerk position in Huntington Beach serves as a department head and the City’s elections official. The Clerk operates a department that includes records/archive management, election services, passport services, claims administration, agenda management, public records request management, and FPPC filings. The position also manages a staff of 5 full-time staff and 4 part-time staff. There are also 11 California charter cities with elected city clerks – whether serving a ceremonial role or as a department head. Staff reviewed their educational requirements (if any) as listed in their individual charters, municipal codes, job descriptions or websites. Out of the 11 charter cities (not including Huntington Beach), the education requirements for the Clerk position are as follows: • One city (Redondo Beach) included educational requirements directly in the charter; four other cities had educational requirements listed on their municipal code or websites. Six additional cities did not have any educational requirements, and the remaining two cities are unknown at this time. • Existing educational requirements ranged by City: o “Four-year college degree in finance or business related field” (Carlsbad, Municipal Code) o “Some college work in public administration and/or business administration. (Glendale, website) o “At least 15 units completed at a collegiate institution in the accounting field, either in residence or in extension, or in a recognized private school of equal educational standards.” (Redondo Beach, Charter) o “Combination of education and experiencing equivalent to completion of an Associate of Arts Degree in Public Administration, Business Administration, or related field.” (Santa Clara, Santa Maria, website requirement) For additional context, Orange County cities (including both charter and general law cities and mostly appointed Clerks) have educational requirements, whether the Clerk is elected or appointed. 23 out of 31 Orange County cities that provided staff with information on the job requirements reference a Bachelor’s or four year equivalent in Business Administration, Public Administration, Public Policy or Records Management. 25 out of 31 cities include the phrase “or related field”. (Three Orange County cities did not provide information about their job requirements.) Preliminary Fiscal Analysis: There are no known fiscal impacts associated with this amendment. 50 Section 3 10 . CITY CLERK. POWE RS AND DUTIES. T o becom e and remain eligib le for City C lerk, the person e lected or appoint ed .shall have a Bachelor 's Degree in b usiness, pl:¼8tie administration , or a fet.ated field~ and hold a certification as a Municipal Clerk or obtain such certification within the first t hree years in office. The City Clerk shaJl have the power and shall be require d to : 8 Section 314 (NEW). Recommended by Council Member McKeon on 8/1/23 Preliminary Operational Analysis: Today, if the City receives such an allegation against an elected official, the Human Resources Department may hire a third-party investigator to conduct an investigation. However, this amendment would require the City to refer the allegation to a higher-level government agency such as the Orange County District Attorney. The complainant has the recourse of suing the elected official and/or the City. Preliminary Fiscal Analysis: There is a degree of liability, risk of lawsuits, cost of attorney fees, and/or settlements that would yield a yet to be determined fiscal impact. Section 401(b) & Sections 601-605. Recommended by the Ad Hoc Committee on 8/1/23 51 Section 3 14 . INVE S T I GATrON O F MALFEASE ANCE To avoid potenti al conflicts o f interest and political i nte rferen cei any alle gati on of malfeasance, wrongdo in g or mi sconduct ag ainst an elected offi cial of the City, shall not be investigat ed by the City, any other City O ffi cial, o r member of C ity Staff. Ra1 h er, such allegati on s sha11 be refe.ued to the Orange County District Attorney. the Cali fornia Attorne y General, the F air Political Pra ctices Commissi on, or ot her appro p riate higher level govennnent agency. Section 401. POWERS AND DUTIES. Except a s otherwise provided in this Charter, the City Manager shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove depmtment heads, officers and employees of the City except elective officers and the Chief of Police , The Chief of Police shall not be appointed or removed until the City Manager shall first have reviewed such appointment or removal with the C ity Council and have received approval for such appointment or removal by a majority vote of the full City Council. (b) Prepare the budget as required by this Chruier unnually, submit it to the City Council, and be responsible for its administration upon adoption. 9 52 NAG R. At such date .as the Cily Marniger s 1aU detennine, ea.ch board or commission and each deparlmen:t head sha]l furnish t, the ity Mana.ge.r, personaiUy ,o:r through the Mnanee Diree~er Chief .Fin , :i: ·ial Off' cer , estimates of the department· s board 1 s or commission's r venue and e ·pcnditures for the ensujng ~ foscal years dern.i.led in such mann r as may b presct'bed by the City anageL In preparing the proposed budget the ity Manager shall r view the sti mates, ho Id onfcrcncc thereon with the respective departmeo heads, boards or com.missions as necessai:y, and may revise the estimates as m y be deemed advisa Je. 'ectiot 602. BJ :l'.Ji'fL~L •11.:.~UAb BUD CJ The City Manager shall ub il th propo ed budget t . , the Ci y Co1,.mciJ at Je.ast tlurty days prior to the bcginni g of cacl ~~~ :nl_!mbcrcd fi ·en year ~inning in 2026. After rcviewmg the propoiSed budge and. making uc:h revi ~fons as il may deem advisable the City ouncil shaU hold a public hearing thc.rc,on at I.cast fifkon days prior to the beginning of each even number d fiscal . year a, d shaH cause to be pu ]islted a notice thel.'•eofnot l,ess than ten days pr"or to aid hcaJing., opL ofthe pr, ,posed hudget shall be availaMe for insp c1ion by the pub]ic in the office of the ity Clerk at I ast oon days prior to said hearing. ecrion 603. BIENNIAL ANMJ. l , BUDGET. PUBLI HE RING. At the time so advertised or at any time to which such pU:br c hearing shall from im ·to time be adjourned, the , ity ouncil shall hold a public hearing on ·th pmpo d budget. at which i 1tc ,·es!cd per ons des iring to be heard shaU be giv,en such opportunity. cction 604. B1 •NN[AL •A"-"!\~MJl\b BUDG T. FURT .IER CO AD0PT!O . At the conclu ion ofth public hearing the Chy Cou cil shaU further consider the proposed budget and make any t visiol'ls thereof that it may deem advisc:lble and on or before th last day of the fiscal y,ear i shall adopt the budget with re isions if any by lhe affirmative vote of at. least a majorit}' o the total mc:mbcrs of 'lhe Co·u1J1cil. Up on fina adopt on. th · udg l =>haJl be in effect. for the en uing, m•o fiscal year:1. Copies thereof,. certiile.d by the City Clerk, shall be m _d with th : City Manage1·, P+ri,ef!ee DH'-eeteF Ch~ef Financial Ofi""cer, City 'Treasure-rand the person 11ctaincd by ·the ity Council. to pc fonn the post audi ( func ion and a furthe copy shall be placed, l:llnd ·ha]] remain on fie i:11 the o i1ce of the ity -lerk w ere it hall be ava:HabJe for 10 Preliminary Operational Analysis: The amendments would transition the City from an annual to a biennial budget, starting in Fiscal Years 2026-2028. There is precedence for two-year budgets in Orange County; half of the 10 largest cities in Orange County (not including Huntington Beach) utilize biennial budgets. There are also known advantages and disadvantages of a biennial budget. Advantages may include reduced staff time from undertaking an intensive six-month budgeting process every year. It also encourages the City to plan strategically and longer term, particularly for larger projects and initiatives. Disadvantages may include longer range forecasting of revenues and expenditures further into the future; and more extensive budget amendments or mid-cycle reviews and adjustments that may potentially eliminate time savings in year 2. The Chief Financial Officer is supportive of a biennial budget. However, there will be operational impacts from implementing process changes that require updates to budget forms and document pages to account for the second year; updates to the accounting software; staff training; a new format for the mid-cycle update and adjustments; and criteria and process to carryover funds between years 1 and 2. The Finance Department would likely need to begin after the approval of this Amendment in order to kick off the budget planning season starting Fall 2025, while simultaneously developing the remaining annual budgets for FY 2024-25 and FY 2025-26. Lastly, the amendment proposes one administrative change to retitle the Finance Director to Chief Financial Officer, which is the title used commonly today and matched with the City’s organizational chart. Preliminary Fiscal Analysis: The primary fiscal impacts will be the hours of staff time required to implement the process changes across all 12 City departments, conduct public engagement on this major change, and potential costs to make changes to the City’s accounting software. The required staff hours will not be known until a plan is identified to transition the budget. 53 public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. BIENNIAL ANNUl.L BUDGET APPROPRIATIONS. From th e effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become approp1iated to the several departments, offices and agencies for the respe ctive objects and purposes therein n amed; provided , however, that the City Manager may transfer funds from one object or purpose to another withi n the same department, office or agency. All appropriat ions shall lapse at the end of the second fiscal year to the extent that they shall not have been expended or lawful ly encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a m ajority of the total members of t he City Council. 11 Section 612. 54 Section 612. PUBLIC UTILITIES AND PARKS A D BEACHES . (a) o public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transfe1Ted or disposed of unless authorized by the affumative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a major ity of the electors voting on such pmposition at a general or special election at which such proposition is submitted. (b) No go lf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at Least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of t he ele,ctors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment, conceptual cost estimate, and reasonable project description has been completed and widely disseminated to the public. Effective January 1, 2011, and each year thereafter, the maximu m cost will be adjusted by the Consumer Price Index for the Los Angeles-Ri 1erside- Orange County area. (c) Section 612(a) and 612{b) shall not apply; ( 1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; -the contract is to perform an act or prov ide a service in a public park or beach AND -such act was being performed or service provided at the same location prior to January l, 1989 AND -the proposed lease, franchise, concess ion agreement or other contract would not increase the amount of parkland or beach d edicated to or used by the party perfom1ing such act or providing s uch service. (3) to aboveground public works u til ity structures or public restrooms undet 6,000 J,OOG square feet; 12 Recommended by the Ad Hoc Committee on 8/1/23: Preliminary Operational Analysis: Section 612, also known as Measure C, was a voter initiative that was approved by voters during the November 1990 General Election and was incorporated into the Charter thereafter. Measure C requires majority voter approval on matters involving the following, with some exemptions: o Sale, lease, transfer or exchange of park and beach lands in Huntington Beach o Construction of certain private and public developments on these lands This proposed amendment would add to the list of current exemptions: public restrooms under a certain size, above ground public works utility structures under a certain size, new playground facilities or equipment in parks; and replacement playground facilities or equipment under certain sizes. These amendments would permit staff to provide these amenities without the added cost of a ballot measure, which would facilitate the process and deliver them to the public at an accelerated rate. Preliminary Fiscal Analysis: Currently, Measure C requires the City to produce a “shovel ready project” by completing a conceptual design, all design documents, construction documents, and pertinent environmental studies, prior to placing a park or beach project on a ballot measure. The cost of each component may vary significantly (upwards of a million dollars) and often take on a percentage of the final total project cost. For the purposes of a general fiscal analysis, the average cost, per acre, of each phase of the project is listed below, and includes additional data for an anticipated 6% increase in costs in 2024: Project Phase Average Per Acre Cost (2023) Average Per Acre Cost 6% Escalation (2024) Conceptual Design $5,340 5,661 Design Cost $13,949 $14,786 Construction Documents $44,463 $47,131 Construction $508,390 $538,893 This estimate does not include any costs to place the project on a ballot measure, which is an added cost. 55 ( 4) to underground public works utility structures if park or beach use is not impeded; (5) to any publi c works construction, maintenance or repair mandated by state or federal law that does no t negatively impact recreational opportunities; er (6) to renewable energy projects that do not negati ve ly impact recreational opportunities-:: or (7) to new children's playgro und facilities or. equipment in any park; or to rep lac ement children 's playground faci lities or equipment in any park ot beach., provided that the squa1.1e foota£;e of such replacement chiJdren's playground facilities or equipment is not increased by more than 100% during any teu yeaT period. ( d) If any section , subsection, part, subpart, paragraph, clause or phrase of th is amendment, or any amendment or revision of this amendment) is for any reason held to be invalid or unco nstitutional , the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remai n in fu ll force and effect. 13 Playgrounds average $110 per square foot in 2023, and $117 per square foot in 2024, with the anticipated 6% escalation in costs. Recommendations from City staff Based on staff experience working on public projects within the guidelines of Measure C, a few recommendations are listed for consideration: • Amend Section 612(a) to: 1) remove the dollar threshold ($161,000 adjusted for CPI) that triggers Measure C, as most projects exceed that value today or 2) no longer require the environmental assessment, conceptual cost estimate and construction documents to be completed prior to a Measure C vote; these items will still be prepared and presented to the public and City Council for a thorough review. Project construction would be contingent only after obtaining approvals for all items. • Amend Section 612(a) to clearly define “structure” and its minimum square footage, as it is not defined in the Charter. Determine if structure also includes flatwork such as pickleball and other sports courts. This would clear up ambiguity about which projects qualify under Measure C. • Amend Section 612(c) to add public restrooms as an exempted project; remove any square foot thresholds, as many projects such as restrooms and public works utilities exceed 3,000 square feet. Section 618 (NEW). Recommended by Council Member McKeon on 8/1/23 Preliminary Operational Analysis: The amendment will require City Council and voter approval in order to engage in investment transactions between the City and a property owner that may yield over $100,000 in property tax exemptions. As a matter of background, when the City purchases property, it becomes property tax exempt so long as it is used for public purposes; as such, the amendment carves out exemptions for transactions in which the City acquires property for public parks or infrastructure, as defined in section 617(a) (see below). This would limit the amendment’s applicability on City operations, as it relates to these matters. Section 617(a): The term “Infrastructure” shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways. 56 SECTION 618. VOTER APPROVAL REQUIRED FOR MATTERS AFFECTING THE COLLECTION OF PROPERTY TAX. No transaction that forgives. waives or foregoes the collection of property tax by the City in excess of $100 ,000.00 per year shall be approved, unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. This section shall not apply to transactions related to the acquisition of property for public parks: or to trnnsactions related to the acquisition of property fo r infrastructure, as defined in Section 617(a) of this Charter. 14 Staff noted that the definition above does not include water infrastructure (i.e. water lines, reservoirs, etc.). In addition, the phrase “beach facilities” could be generalized to include all “recreational facilities” which are also viewed as infrastructure. Other considerations not covered in the exemptions may include the acquisition of buildings not used for public purposes. An example may be to acquire a commercial property that is leased out to businesses that would pay possessory interest taxes, but not property taxes; as such, staff is uncertain if the amendment would apply to these types of transactions. Another possible exemption for consideration would be transactions implementing the Zoning and Subdivision Code, as such transactions do not involve a direct City financial subsidy or investment. An example would be Zoning and Subdivision Code Section 230.26 commonly referred to as the Inclusionary Housing Ordinance under which developers of residential projects must satisfy affordable housing requirements. Should a developer choose to create affordable housing units to satisfy this requirement, the City Council should be authorized to approve implementing agreements between the City and the developer as approved by the City Attorney’s office. Preliminary Fiscal Analysis - The current property tax rate is 1.09391% of an assessed property value. For every dollar of property taxes remitted to the County Assessor’s Office, 16% is distributed to the City. Given this formula, only properties with an assessed value of equal to or higher than approximately $57 million in the City’s General Fund tax rate area (TRA) would yield property taxes of $100,000 or greater directly for the City of Huntington Beach. Based on our most current tax information, only 24 properties (residential, commercial, and industrial) fall in this category. These would be among the known properties that could trigger the amendment, if the owner and the City propose to enter into a transaction that results in excess of $100,000 in property tax exemptions. However, it should be noted that the $100,000 tax threshold is a static number that does not adjust or respond to current market conditions. If property values continue to trend upwards and the threshold does not adjust accordingly (for example, with the use of a CPI adjuster or a more appropriate method), the number of properties that may trigger this amendment will steadily increase from the current list of 24 properties. Section 702 & 705 (NEW). Recommended by the Ad Hoc Committee on 8/1/23 57 Section 702. PROCEDURE FOR HOLDING ELE CTIONS. All elections shall be held in accordance \: ith the provisions of the E lect io ns Code of th State of California, as the same no w exists or hereafter may be amended, for the holding of n mnicipal elections, so far as the same are not in conflict w1th t his Charter. In the event o f such confli c t. the provis ions of this Charter sha1l control and ,12revaiL in accordance with Sect ion 103 of this Charter. 15 Preliminary Operational Analysis Per the Ad Hoc Committee, the amendment envisions that the City would implement the proposed changes while still consolidating elections with the County Registrar of Voters (ROV). In this scenario and with the current number of registered voters, the ROV would continue to provide eight ballot drop box locations with vote by mail (VBM) options, three 11-day in-person Vote Centers at major City facilities, and ten 4-day in person Vote Centers at both local and smaller city facilities. The minimum number of Vote Centers is predetermined by an Elections Code formula and identified in the County’s Election Administration Plan which will be updated in 2025. However, the City would need to provide poll voters to verify id, request an additional 10 Vote Centers and install video cameras to monitor the drop boxes. The City has inquired with the ROV about whether the County would allow City poll workers to conduct voter id verification at the County’s Vote Center and whether the County would consider providing additional Vote Centers above and beyond what it provides now. On September 20, the ROV stated that it cannot comment on these proposals. In the event the ROV does not accept the City’s proposal and does not consolidate elections, staff has conducted a very preliminary cost analysis for one City standalone election. The initial startup cost for items such as equipment is $664K – 858K; the recurring or operating costs to hold each election is $689K - $832K. This is based on figures from other municipalities that have recently conducted standalone elections but scaled for Huntington Beach and its number of registered voters. Preliminary Fiscal Analysis Should the City eventually obtain an affirmative response from the County, the amendment would require the City to consider the following costs related to this amendment. The City would need to provide poll workers at each ROV Vote Center to verify voter identification; this would likely require recruitment costs, training and hourly wages at a rough cost estimate of $69,000. In regards to the cost of the additional ten 4-day in-person Vote Centers that will help achieve the total 20 residential voting locations described in the amendment – the ROV did not provide a cost estimate. The ROV stated that it is not their practice to bill jurisdictions on a Vote Center by Vote Center basis. If they are authorized by the County to provide the additional Vote Centers, the cost would be billed proportionately to all participating jurisdictions based on a formula that takes the number of voters per jurisdiction into account. This cost cannot be known at this time. In regards to drop box monitoring, the City may be able to install 24-hour video cameras on buildings within proximity to each drop box. If a building is located on private property, staff would need to negotiate an agreement to mount a video camera on the property. At this time, one firm offers video monitoring for approximately $2,500 per location including camera equipment and installation for 24-hour access. Based on that, the City would anticipate incurring at least $20,000 plus additional unknown cost related to the agreements. The City was advised by the ROV to further consult with the City Attorney regarding the legality of local monitoring of ballot drop boxes. 58 Section 705 . SPECIAL PROVISIONS RELAT ING TO MUNICIPAL ELECTION For all municipal e lections, "Elector'' means a. person who is a United States citizen 18 years of a ge or older, and a resident o f the C ity on or before the day of an election. The C ity shalt verify t he e li gibility of Electors bx voter identificati on. Beginning in 2026, the C ity to provide at leas t 20 residentia l voting locations for in-person voting disper sed even ly throughout the City, i n adclitfon to any City facility vo ting lo c ations . The City sha ll monitor baUo t drnp boxes located wi th in th e City for compli an ce with all applicable laws . As in Section 300, the City Charter shall determine the term of the C ity's elect ive officers, the length of term , and the election cycle in which t he election for those offices occu r fo r the City's e lective officers . 16 Consolidated Election with ROV Proposed Charter Amendments Anticipated Additional Costs VBM Ballot Drop Box locations 8 Added monitoring with 8 security cameras $20,000 plus unknown cost for related agreements 4-day in-person Vote Centers (local & small City facilities) 10 Add 10 additional Voter Centers; Voter ID verification -related costs Cost for 10 additional Vote Centers is unknown. $9,000 for Voter ID monitoring (recruitment, training, hourly wages) 11-day in-person Vote Centers (major City facilities) 3 Voter ID verification - related costs $60,000 for Voter ID monitoring (training and hourly wages The added costs in the table would be in addition to the consolidated election cost with the ROV for election services currently estimated at approximately $318,928 to $383,128. Adding any ballot measures would be an additional cost as well. Section 806 (NEW). Recommended by the Ad Hoc Committee on 8/1/23. Preliminary Operational Analysis: There are no known operational impacts at this time. It should be noted that the amendment allows the City to fly additional flags not listed in the proposed amendment, if it is authorized by unanimous vote of the City Council. Preliminary Fiscal Analysis: There are no known fiscal impacts at this time. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable - Administrative Item Attachments: 1. PDF version of the report 59 SECTIO, 806. DISPLAY OF FLAGS. Except as otherwise provided herein, the City shall only fly or display at or on any of the City's properties the following fl ags: the American flag. the POW/MIA flag. the State of California flag, the Huntington Beach City flag, the County of Orange flag, or any of the flags of the six branches of service: the Arm ¼ Navy, Air Force, Coast Guard, Marine Corp s, and Space Force. During the Summer Olympic Games , the Mayor is authorized to order the dis32 lay of the official Olympic flags for font weeks prior to the dates of the games, and for up to two weeks thereafter. The City may display any other flag in additio n to those already enumerated, but only if authorized by a unanimou s vo te of aJI members of the City Cou nci l.