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Taxpayer Transparency - Evaluation of City Tax-Sharing - Sub (2)
2000 Main Street, 0 �N7 ;;';4& Huntington Beach,CA of �,,w.��:,��. � 92648 } -- City of Huntington Beach APPROVED 7-0 o .srQa File#: 24-621 MEETING DATE: 10/1/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY: Jane Chung, Assistant to the City Manager Subject: Receive and file response to August 6, 2024, Council Member Item: Taxpayer Transparency- Evaluation of City Tax-Sharing Statement of Issue: At the August 6, 2024, Council Meeting, Council Member McKeon directed the City Manager and Finance Director to report back to Council with a written report and oral presentation on questions regarding the City Tax-Sharing. Financial Impact: No funds are required. Recommended Action: Receive and file response to August 6, 2024, Councilmember Item: Taxpayer Transparency- Evaluation of City Tax-Sharing Alternative Action(s): Do not approve the recommended action and direct staff accordingly Analysis: At the August 6, 2024, Council Meeting, Council Member McKeon directed the City Manager and Finance Director to report back to Council with a written report and oral presentation with the answer to the following questions: 1. What tax-sharing or incentives were provided to Amazon for locating its warehouse in north Huntington Beach. Additionally, how much is/was the"sharing"or City tax/revenues foregone by the City(i.e., the difference between what the City would have received in the aggregate over the years at the regular rate of tax, minus what the City actually has received in the aggregate over the years at a discounted rate of tax) as a City of Huntington Beach Page 1 of 8 Printed on 9/25/2024 powered by Legistarrm 735 File#: 24-621 MEETING DATE: 10/1/2024 result of these incentives. The City did not provide any concession or incentive to any Amazon business. However, the City may provide economic incentives in the form of sales-tax sharing agreements, through negotiated contracts, to incentivize a business to locate or remain in the City and encourage the sale of goods within City boundaries. State law (AB 562) defines an "Economic Development Subsidy" as an expenditure of public funds or loss of public revenue of$100,000 or more for economic development purposes. As of January 1, 2014, before approving an economic development subsidy, a local agency must prepare a written report that includes: • Name and address of beneficiary. • Start and end date, schedule of subsidy • Description of subsidy, including total estimated expenditure of public funds or lost public revenue • Statement of the public purposes for the subsidy • Projected tax revenue to the local agency as a result of subsidy • Estimated number of jobs created by subsidy, broken down by full-time, part-time and temporary The procedure to adopt an economic development subsidy includes the following steps: • Noticed public hearing to consider the report • Report made available to the public and on website for entire term • Within 5 years of granting subsidy, local agency must: o Prepare new report that includes the info contained in original report, plus: • Net tax revenue accruing as a result of subsidy • Net number of jobs created (full-time, part-time and temporary) • Hold a noticed public hearing on the updated report • For subsidies with a term of 10+ years, local agency must prepare an updated report and hold a noticed public hearing at subsidy term end According to Revenue and Taxation Code Section 7056, sales tax data must remain - confidential. Therefore, the information provided here is based on publicly accessible data from the City's Annual Comprehensive Financial Reports. Since 2018, the City has provided approximately $5.9 million under four sales tax sharing agreements, and an additional $300,000 to $400,000 annually through a Memorandum of Understanding with the Auto Association. Two of the four sales tax sharing agreements are listed below, the other two are- listed under Question 3. Combined sales tax to the City over the years through the sales tax sharing agreements is estimated to be over$30 million. The City's current economic development subsidy reports are available on the City's website https://www.huntingtonbeachca. A. Pinnacle City of Huntington Beach Page 2 of 8 Printed on 9/25/2024 powered by LegistarT'•' • 736 File#: 24-621 MEETING DATE: 10/1/2024 Founded in 1995, Pinnacle Petroleum, Inc. (Pinnacle) is a national provider of competitively priced energy products and services. Pinnacle was approached by other cities to relocate their operation and sales tax payments to their city, however Pinnacle decided to stay in Huntington Beach in large part due to the City entering into a Sales Tax Sharing Agreement in 2014. While terms have changed over the years, the current agreement provides a rebate of 65% of the sales tax revenues generated by Pinnacle in any given fiscal year. The City was also able to retain between 19 and 22 full-time and part -time jobs. The agreement was extended in 2024 and runs through 2029 with one remaining five-year option (2034). B. Applied Computer Solutions (ACS) The City entered into an agreement with Applied Computer Solutions (ACS) in 2000 to keep them in Huntington Beach, as they were considering moving to another city to find a site that could accommodate their continuing growth at a lower cost. ACS was consistently. a top 25 sales tax producer. The agreement was later amended in 2010 to allow ACS to receive a 25% rebate of the sales tax increment it generates over a base of$200,000, and 35% over $600,000 annually. This agreement expired in 2020. 2. What was the total amount of foregone rent revenue as a result of the City Council's March 31, 2020, action implementing rent abatement for tenants at various City-owned facilities related to COVID relief. How much did the"sharing"or"discount" or"write- off' of rents that were contemplated by leases between lessees and the City(i.e., the difference between what the City would have received in the aggregate over the years at the regular rent rates specified in the original leases, minus what the City actually • has received in rents, if anything, during the rent abatement period) equate to. a. List the Businesses/Lessees who were subject to the COVID rent abatement program. b. List the time period of when COVID rent abatement was in effect for each of those Businesses/Lessees. c. List the amount of rent each Business/Lessee did not pay during that rent abatement period. d. Identify when the rent abatement period ended . On March 31, 2020, the City Council approved COVID rent abatement to concessionaire tenants of various City-owned facilities, effective from the date of the issuance of the State of- California's Proclamation of State of Emergency (March 4, 2020) until the Proclamation was lifted. On July 6, 2020, the City Council approved to end COVID rent abatement for certain tenants at City-owned facilities, effective August 1, 2020, and authorized the City Manager to reinstate if necessary. Some concessionaire tenants were required to pay partial rent payments beginning on May 1, 2021, in one of three ways: 1. For tenants with leases containing percentage sales rent, minimum base rent continued ' to be temporarily waived. 2. For tenants with leases containing only monthly rent, 50% of monthly rent was required, City of Huntington Beach Page 3 of 8 Printed on 9/25/2024 powered by LegistarT" 737 File#: 24-621 MEETING DATE: 10/1/2024 to be paid. 3. For tenants occupying City facilities that remained closed, rent abatement was continued until the facilities were fully reopened to the public. The table below lists the businesses/lessees that were approved to receive COVID rent abatement, the time period, and the amount of base rent abated. Percentage rent abated has not been included in the table since those projections are based off gross revenues received.. Business Rent Abatement Amount Start Date End Date Ruby's Diner(RAV) $175,751.52 April 2020 July 2021 Let's Go Fishing $13,300.00 March 2020 April 2021 Surf City Store $12,464.00 March 2020 March 2021 Kite Connection $13,442.50 March 2020 April 2021 Duke's $503,495.00 March 2020 April 2021 HB Visitor's Kiosk $3,777.06 March 2020 July 2021 . Zacks Pier Plaza $0.00 - - Dwight's Beach Concession $11,846.40 March 2020 April 2021 Jack's Beach Concession $11,846.40 March 2020 April 2021 Kokomo's Surfside Grill $13,414.28 March 2020 April 2021 Hilton Beach Cabana $0.00 - - Hyatt Beach Concession $17,850.00 March 2020 July 2021 Zack's Too $12,927.64 March 2020 April 2021 National Link $3,825.00 March 2020 July 2021 Fare Share Enterprises $0.00 - - HB Emp. Credit Union $46,529.00 March 2020 July 2021 Huntington Harbour Yacht Club $47,538.64 March 2020 July 2021 Primo Nosh $1,275.00 March 2020 July 2021 Braver Players $0.00 - - California Genealogical Society $11,900.00 March 2020 March 2023* One Fine Blend $12,750.00 March 2020 July 2021 Kathy May's Restaurant $26,250.00 March 2020 April 2021 Disc Sports Management $14,000.00 March 2020 April 2021 Park Bench Café $12,500.00 March 2020 December 2020 HCP Equestrian Center $0.00 - - Primo Nosh $21,768.16 March 2020 July 2021 Denny's $954.06 June 2020 July 2020 Huntington Shorecliffs $12,000.00 April 2020 July 2021 Surf City Nissan $0.00 - - Monroe Pacific Nursery $40,457.48 March 2020 July 2021 City of Huntington Beach Page 4 of 8 Printed on 9/25/2024 powered by Legistarm 738 File#: 24-621 MEETING DATE: 10/1/2024 Meadowlark GC $753,338.00 March 2020 July 2021 Visit HB-Surf Museum $8,721.00 March 2020 July 2021 Oak View Rec Center $1.00 March 2020 March 2020 Vans Skate Park $0.00 - - Total $1,803,922.14 *Rent abatement continued until the group was able to return to the library. During the pandemic, hotels were given the option to hold their TOT/TBID receipts for the months of March 2020 to August 2020. They were given the option to repay the funds in full by January 29, 2021, or in six equal payments due by June 30, 2021. All applicable hotels met the requirement of repaying the funds within the agreed timeframe. 3. What tax-sharing or incentives have taken place due to the agreement(s)with the Car Dealerships for locating/improving car dealerships in Huntington Beach:Additionally,. how much is the"sharing" or City tax/revenues foregone by the City(i.e., the difference between what the City would have received in the aggregate over the years at the regular rate of tax, minus what the City actually has received in the aggregate over the years at a discounted rate of tax) since the inception of the subject Agreement(s). According to Revenue and Taxation Code Section 7056, sales tax data must remain confidential: Therefore, the information provided here is based on publicly accessible data from the City's Annual Comprehensive Financial Reports. A. Surf City Auto Group II, Inc. In 2017, the City entered into a Sales Tax Sharing Agreement with Surf City Auto Group II, Inc. to help defray the cost for development and opening of a stand-alone Jeep dealership- at 16701 Beach Boulevard. The economic development subsidy is equal to fifty percent (50%) of the sales tax revenue received by the City from Surf City Auto in excess of. $1,681,797 (base amount) for the first year, increasing by 1% each subsequent year. Surf City Auto has hired 25 full-time workers since completing the stand-alone Jeep dealership and approximately 75 workers were hired during construction. The property value has also increased due to site improvements. The agreement terminates in 2037. B. McKenna Motors Huntington Beach, Inc. To encourage the creation of a new Subaru dealership within Huntington Beach, the City entered into an agreement in 2016 to provide a subsidy equal to forty-five percent (45%) of' the sales tax revenue received by the City for McKenna's Volkswagen (VW) and Subaru dealerships in excess of$150,800 (base amount) for each year of the term. Benefit to the City is through additional sales and property tax received. The subsidy enabled McKenna Motors to expand the operations of both the VW and Subaru dealerships by constructing a new showroom, retail store, and maintenance facility to meet Subaru's dealership image and space guidelines. Subaru has hired a total of 37 full-time employees, and they had City of Huntington Beach Page 5 of 8 Printed on 9/25/21324 powered by LegistarTM 739 File#: 24-621 MEETING DATE: 10/1/2024 approximately 300 workers onsite during construction. The property value has also increased due to site improvements. The agreement terminates in 2032. Auto Incentive Beach Parking Pass In 2022, the City and the Huntington Beach Auto Dealers Association renewed its agreement for five years to provide car purchasers and lessees with a free annual beach parking pass with the goal of encouraging car purchases and leases in the City, and having visitors support downtown businesses. The City provides financial assistance in the form of parking vouchers to auto dealers within the Association to incentivize sales tax revenue. The City collects between $8 and $9 million in sales tax annually from car dealerships. In FY 23/24, the City provided 1,977 vouchers which equates to approximately $385,515. 4. How much property tax per year will the City forego through the Breakwater and Elan property purchases. Further, how much foregone property tax will be owed to Local Government and Education Agencies, i.e. the County of Orange, Coast Community College District, Municipal Water District of Orange County etc., upon conveyance of the properties . In 2021, the City entered into Public Benefit Agreements for the acquisition and conversion of the Breakwater and Elan properties for the Middle-Income Housing Program (Resolution No. 2021-43 and 2021-44). The initial sales price for Breakwater was $185,000,000 and for Elan was $136,000,000. The City of Huntington Beach will forgo approximately$22,168,676 in property tax revenue over a 35-year period due to the tax-exempt status of the Breakwater and Elan properties under the Middle-Income Housing Program. This total includes both the City's share of property taxes ($20,926,549) and the Huntington Beach Employee Retirement levy ($2,242,127). On average, this amounts to about $633,391 per year. This estimate takes into account a 2% annual increase in property tax revenue that the City would have otherwise received. The Surplus Conveyance Proceeds clause in the Public Benefit Agreements for the Breakwater and Elan projects outlines how remaining funds, after bond redemption and other expenses, will be distributed to various local government and education agencies. Importantly, these payments are only triggered"upon a conveyance of the properties." This means that if the City does not sell or transfer the properties, it would not be required to make these payments to the other agencies. If a conveyance occurs, the anticipated foregone property tax over the 35-year period for each entity would be as follows: • City of Huntington Beach: $20,928,549 (12.08%) • Huntington Beach Employee Retirement: $2,242,127 (1.29%) • County of Orange: $128,548,813 (74.21%) City of Huntington Beach Page 6 of 8 Printed on 9/25/2024 powered by LegistarTM 740 File#: 24-621 MEETING DATE: 10/1/2024 • Orange County Sanitation District: $9,016,679 (5.21%) • Coast Community College District: $4,754,806 (2.74%) • Huntington Beach City School District: $3,663,640 (2.11%) • Huntington Beach Union High School: $3,514,168 (2.03%) • Municipal Water District of Orange County (1): $526,451 (0.30%) • Orange County Vector Control District: $26,884 (0.02%) • Municipal Water District of Orange County (2): $3,291 (0.00%) The total anticipated foregone property tax across all these entities is approximately $173,223,408 over 35 years. By the end of the 35-year period, the properties are expected to have a combined value of approximately $595.6 million, assuming an annual appreciation rate of 1.8%. The values are estimated as follows: • Breakwater: $345,417,199 • Elan: $250,194,074 At year 35, assuming the City decides to sell the properties and after the bonds are fully paid off and all obligations to local government and education agencies are met, the City of Huntington Beach is anticipated to receive approximately $445,556,542. This amount includes the City's share of the property tax payment and the Huntington Beach Employee Retirement- share. • 5. Any other example of cost sharing, tax sharing, or other type of financial concession to a private entity in the last five years. A. Nonexclusive agreements a. Waive field use for Youth Sports organizations in exchange for facility maintenance (e.g. Little League, AYSO). - license agreement b. Waive rent for non-profit organizations in exchange for facility maintenance and services to the community (e.g. Boys & Girls Club, Waymakers, Catalyst Family, Inc.) B. Memorandums of Understanding (MOUs) a. Waive rental fees for non-profit organizations in exchange for use of meeting space at libraries (e.g. Veterans Resources Center, Sister City Association of Huntington Beach, Robert Mayer Leadership Academy, HB Reads). b. Waive rental fees for non-profit organizations in exchange for use of meeting space at the Senior Center for lectures, routine wellness checks, and financial support of facilities, programs, and services (e.g. Huntington Beach Council on Aging, Orange County Memorial Care, Hoag). C. City Sponsored or Co-Sponsored Events a. Per Resolutions 2014-15 and 2014-16, the City can waive charges for City sponsored or co-sponsored events, such as the Kiwanis Club for the Annual Easter Hunt and Family Fun Day, Huntington Beach Concert Band, Huntington Beach City of Huntington Beach Page 7 of 8 Printed on 9/25/2024 powered by LegistarT"741 File#: 24-621 MEETING DATE: 10/1/2024 Historical Society. D. Specific Events a. Waive specific event fees based on Council Action, such as VISSLA International Surfing Association (ISA) World Junior Surfing Championship and Airshow b. VISSLA International Surfing Association (ISA) World Junior Surfing Championship i. On July 2, 2018, the City Council approved an in-kind donation of$10,000 to cover permit and parking fees. ii. On October 7, 2019, the City Council approved to waive Specific Event fees in the amount of$10,000. c. Airshow i. On September 16, 2019, the City Council approved to waive a Specific Event Permit for the 2019 Great Pacific Airshow, which included a fee waiver of$11,250, parking offset revenues of up to $100,000 contingent on actual parking revenues, and utilization aspects of the City's in-kind contributions via its waste franchise agreements (estimated at up to $10,000). Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections --- 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the - CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Non Applicable -Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. City Council Presentation • City of Huntington Beach Page 8 of 8 Printed on 9/25/2024 powered by Legistarru 742 Evaluation of .- _ --, 1 .. . ,l� �l�rxCity _________..„......... .....„ 00, .. .._______ ...� ��_ _ .�� �� -ems ..... • ___,......._ .,..,...,_, _ ,__.. . --. ,- d• iti. % _.............. ... ., ,...i _____......._ ......._ . 0 , ....,90.., _ , ,,. )7 , 0 ...i...„,„ �� October 1 , 2024 0 17 � g091 *,.., . ‘4(s(— . ' ,'0 " 41).464 ma et iiii66,:f ' \\> -- 0 -' _ ,mew Atetiolo.NTH' , .. , il. 743 Background On August 6, 2024, Council Member McKeon submitted a Councilmember Item directing the City Manager and Finance Director to report back to Council with a written report and oral presentation on questions regarding City Tax-Sharing. oI �1I1Ntir Q tk , r aa e1 •, � .`�49 17 C99S P Q COUSTY CAN. ® 2 744 Overview 1 . Business Subsidies a. Sales Tax Sharing Agreements Non-Car Dealerships 2. COVID Rent Abatement a. Hotel TOT Deferment 3. Sales Tax Sharing Agreements Car Dealerships a. Auto Dealers Association O' O�' oPPoaArfo•,°� 4. Property Tax 5. Other _ - a. ao Q °O�/N TY'G ', 3 • 745 Business Subsidies • The City did not provide any concession or incentive to any Amazon business. However, the City may provide economic incentives in the form of sales-tax sharing agreements, through negotiated contracts, to incentivize a business to locate or remain in the City, and/or encourage the sale of goods within City boundaries. • State law (AB 562) defines an "Economic Development Subsidy" as an expenditure of public funds or loss of public revenue of $100,000 or more for purposes of economic development, and requires local agencies to make this information public. • Combined sales tax to the City over the years through the sales tax , sharing agreements is over $30 million. o 8I � ,�CDRPORgpfd•"+` • Per Revenue and Taxation Code Section 7056, sales tax data must 4aa remain confidential. Therefore, the information provided here is ` o , z , a i. based on publicly accessible data from the City's Annual ° �f a -ram'` ,�� 4_; ``4 7? 190% o 'b .......... ... Comprehensive Financial Reports. COU►uy`'��; .' 4 746 Sales Tax Sharing Agreements : Non-Car Dealerships Company/Program Projected Tax Revenue Date Range 2014-2029, with one 5 ear 65%/35% Pinnacle/City•split, with . • y Pinnacle Petroleum • extension option b asesalesof $100,000 ��� (unti12034). 25%/75% ACS/City split over.a Applied Computer Solutions base of $200,000, and 35%/65% 2000-2020'. (ACS) ACS/City split over $600. 000 • annually 50%/50% Auto Group/City split with Surf City Auto Group II, Inc (Jeep) base sales of $1 ,681 ,797; increases 2017-2038 by 1% each year. McKenna Motors Huntington Beach, 45%/55% McKenna/City split with 2016-2033 Inc. (Subaru) base sales of $150,800. 5 • 747 Sales Tax Sharing Agreements Total Sales Tax Rebate $1,600,000 $1,400,000 1 200 000 $1,000,000 $800,000 $600,000 $400,000 - - $200,000 ______ $0 2018 2019 2020 2021 2022 2023 6 748 COVID Rent Abatement • On March 31 , 2020, the City Council approved COVID rent abatement to concessionaire tenants of various City-owned facilities, effective from the date of the issuance of the State of California's Proclamation of State of Emergency (March 4, 2020) until the Proclamation was lifted. • On July 6, 2020, the City Council approved to end COVID rent abatement for certain tenants at City-owned facilities, effective August 1 , 2020, and authorized the City Manager to reinstate if necessary. • The City provided approximately $1.8 million in COVID Rent Abatement 7 749 COVID Rent Abatement • Some concessionaire tenants were required to pay partial rent payments beginning on May 1 , 2021 , in one of three ways: 1 . For tenants with leases containing percentage sales rent, minimum base rent continued to be temporarily waived. 2. For tenants with leases containing only monthly rent, 50% of monthly rent was required to be paid. 3. For tenants occupying City facilities that remained closed, rent abatement was continued until the facilities were fully reopened to the public. • Rent abatement ended by July 2021 , except for the California Genealogical Society, which ended in March 2023, when the group was able to return to the library. 8 Hotel TOT • During the pandemic, hotels were given the option of holding their TOT/TBID receipts for the months of March 2020 to August 2020. • Option to repay the funds in full by January 29, 2021 , or in six equal payments due by June 30, 2021 . • All applicable hotels met the requirement of repaying the funds within the agreed timeframe. o �. \ytAAPORq `Q•eee`,e arm z- 'I °kV !B it 1448 k9 Q 40-,.0494049 751 . , Sales Tax Sharing Agreements : Car Dealerships Company/Program Projected Tax Revenue Date Range 65%/35% Pinnacle/City split, with 2014-2029, with one 5-year Pinnacle Petroleum base sales of $100,000 extension option (until 2034) . 25%/75% ACS/City split over a base Applied Computer Solutions of $200,000, and 35%/65% ACS/City 2000-2020 split over $600,000 annually 50/- °0/50% Auto Group/City spl'a Surf CityAuto Group II, Inc (Jeep) with base .'sales of $1,681,797 ,3 33 017-203 increases by 1% each year. McKenna Motors Huntington. 45%0/55%o McKenna/City split•with 2016 2033 Beach, Inca(Su:baru) base sales,:of • $1.50,800. 10 752 Auto ea ersAssociation • The City has a MOU with Huntington Beach Auto Dealers Association for the Auto Incentive Beach Parking Pass to provide free annual beach parking passes for car buyers and lessees, encouraging local purchases. • $300,000 to $400,000 annually in beach parking passes through this MOU. • The City's financial contribution through parking vouchers supports sales tax revenue from local auto dealers, which generates $8-$9 or IN million annually. 1�40 •,`. .,vo- PbBai.a., $ �M i f• • �r ; � In FY 23/24, the City provided 1 ,977 vouchers, which equates to ' . `°`' Ica. ‘ approximately $385,515. 11 753 roe ax In 2021 , the City entered into Public Benefit Agreements for the acquisition and conversion of the Breakwater and Elan properties for the Middle-Income Housing Program. The initial sales price for Breakwater was $185M and for Elan was $136M. City will forgo approximately $22.2M in property tax revenue over a 35-year period due to the tax-exempt status of the Breakwater and Elan properties under the Middle-Income Housing Program • Takes into account a 2% annual increase the City would ��P ¢ have received ,�® -r� �. 1 , cs` -;t:op084...`e .. • $633,391 average per year ° k O •e+ 1 iflA 754 Property If a conveyance occurs, the anticipated foregone property tax over the 35-year period for each entity would be as follows: • City of Huntington Beach: $20.9M (12.08%) • Huntington Beach Employee Retirement: $2.2M (1.29%) • County of Orange: $128.6M (74.21 %) • Orange County Sanitation District: $9.0M (5.21 %) • Coast Community.College District: $4.8M (2.74%) • Huntington Beach City School District: $3.7M (2.11 %) • Huntington Beach Union High School: $3.5M (2.03%) • Municipal Water District of Orange County (1 ): $526,451 (0.30%) „„ • Orange County Vector Control District: $26,884 (0.02%) � .• PoA ; • Municipal Water District of Orange County (2): $3,291 (0.00%) V Y .,°��. The total anticipated foregone property tax across all these entities is approximately $1 73.2M over 35 years. . 4: o 13 755 Property By the end of the 35-year period, the properties are expected to have a combined value of approximately $595.6M • Breakwater: $345.4M • Elan: $250.2M • Annual appreciation rate of 1 .8% At year 35, if the City decides to sell the properties, anticipated to receive approximately $445.6M. „ -4--. • This amount includes the City's share of the property tax ;.�#O k 0 1444. .aw.4 °® payment ($20.9M) and the Huntington Beach Employee s4� = 's ek Retirement share ($2.2M). ° • ,of 189m ��,.. 14 756 Other Type Financial Concession/Cost Examples of Entities Sharing Non-exclusive Agreements Waive field use or rent in exchange Little League, AYSO, Boys & Girls for facility maintenance and/or. Club, Waymakers, Catalyst Family, Inc. services to the community Memorandum of Waive rental fees for non-profit orgs Veterans Resources Center, Sister City Understanding (MOU) in exchange for use of meeting Association of Huntington Beach, Robert space at libraries or Senior Center Mayer Leadership Academy, HB Reads, Huntington Beach Council on Aging, Orange County Memorial Care, Hoag City Sponsored or Waive event fees for non-profit orgs Kiwanis Club for the Annual Easter Hunt and Co-Sponsored Events in exchange for City-sponsored or Family Fun Day, Huntington Beach Concert co-sponsored events (Resolutions Band, Huntington Beach Historical Society 2014-15 & 2014-16) Specific Events Waive specific event fees based on VISSLA International Surfing Association (ISA) Council Action World Junior Surfing Championship, Airshow 15 757 • • --- - t•-•v.,--1,,t, .•• --t. 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I •1 ' . . . . . „ • . . . . 1 • . .• • . . . . .• • , . . . . . . . . . • . . . . • . . , . . . . 758 . . . . . . . , SUPPLEMENTAL COMMUNICATION From: Pat Goodman Meeting Date: 10/1/2024 To: McKeon,Casey;CITY COUNCIL(INCL.CMO STAFF);Suoolementalcomm(asurfcity-hb.orq Subject: Administrative Agenda Item#28 Date: Monday,September 30,2024 11:20:27 PM Agenda Item No. 28 24-621) Dear Council Member McKeon and City Council, I reviewed the PowerPoint attached to Agenda Item # 28 and found it very interesting. I believe the request Mr. McKeon made of staff to provide this analysis was to assure residents that the Code 4-Pacific Airshow Settlement was not unique and that the city has entered in various tax sharing, property tax forgiveness, and abatement programs that benefit the residents of the city over the past 20 plus years. This information would have been a helpful disclosure when the council majority entered into settlement discussions with Code 4 Pacific Airshow settlement that morphed into a 40 contract and presented it to the public in the spirit of transparency. Such disclosure would have shown what revenue this event, currently managed by Code 4-PAS, benefits the city coffers to justify such a payout and contract. This information would have gone through an independent economic benefits analysis. The public has not seen this yet or even know if such analysis exists. In addition, there would have been an RFP for such a contract to manage an airshow event for up to 40 years. Had this analysis been part of the public disclosure two years ago that followed public hearings we might be in a different place in that relationship. I think that we can all agree that automobile dealerships could pick up their shop and move to a neighboring town more will to provide incentives. HB offers a unique venue for an air show and therefore holds the upper hand in any kind of contract negotiations for such an event. It looks like other types of agreements for waived lease/rental fees are for nonprofits that provide services and community events. From where I sit, I don't see any real economic benefit to the treasury of the city from the Code 4-PAS settlement/contracts compared to the Public Benefit Agreement to purchase Elon and Breakwater apartments that provide middle income units to HB residents. There is no financial risk to the city only the benefit of appreciation and recoupment of foregone property and pension taxes if the city decides to sell these properties at the end of 30 years. The PowerPoint does remind residents and businesses that when shopping for automobiles and other high ticket items to buy locally. The only complaint I hear is there are not enough enough dealerships to choose from! I do believe that it is proper to engage the State Auditor to conduct a review of the Code 4-PAS settlement/contract in order to try to answer outstanding questions. Residents need to know there is a substantive reasons why this agreement is good for the city. I look forward to your discussion of this agenda item at tonight's meeting. Thank you. Pat Goodman Huntington Beach, CA From: Fikes.Cathy To: Agenda Alerts Subject: FW: Letter Attached Date: Tuesday,October 1,2024 9:01:46 AM Attachments: Letter to City Council Seot 30.docx From:John Carser<jcarser68@gmail.com> Sent: Monday,September 30, 2024 8:16 PM To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org>; city.manager@surfcity-hb.org; Media Relations<media@surfcity-hb.org>; city.attorney@surfcity-hb.org Subject: Letter Attached Some people who received this message don't often get email from jcarser68C�gmail.com.I earn why this is jmoortant September 30, 2024 To the Huntington Beach City Council, City Manager and City Attorney Michael Gates: I watched the City Council Meeting on TV on Tuesday, September 17, 2024.The demeanor of the majority block on the City Council has set the stage for disrespect towards other members on the Council,towards the audience in the Chamber and towards speakers voicing their concerns. I have yet to observe the stability and civility be returned to the Chamber by our local police force. At a prior meeting, I sat in the audience and heard the rude comments (even in the presence of young teens) directed to a council member, a concerned citizen and a presenter at the podium. When I personally heard the profanity, I commented to a nearby police officer, "Are you ok with that?" There was no response. What followed was another police officer who approached the inappropriate individual who then began filming the officer's actions and recording his verbal instructions on his phone. Is this showing respect to our hard working police force? The majority had adopted Agenda Item 24-634 and had voted 4-3 to make it an Ordinance No. 43-26 Adding Chapter 1.23 of the Huntington Municipal Code Relating to Parents "Right to Know City." There was discussion, but the majority did not want to hear the other views and concerns. Nothing in this ordinance has adequately defined an "educator." Who does this ordinance apply to? Is it crossing guards,volunteers, police,fire department,junior guards, administrators, teachers in all the surrounding districts...or owners of art, dance, theater, gymnastic studios...or coaches conducting athletic workshops...business owners who hire young adults to work for them? I am not an attorney but would be willing to seek legal representation regarding this flawed ordinance. Michael Gates is the City Attorney to represent the City Council, yet he will use taxpayer monies to defend wronged parents...am I correct in learning this? What are the consequences of violations of this ordinance? Fines,jail, WHAT? This is perhaps the most undefined legislation I have ever witnessed. Stop wasting our tax dollars!!!!!!! Agenda Item 24-672 was addressed and immediately shut down. It turned into uncomfortable interaction by Mayor Gracey Van Der Mark towards Dan Kalmick. And, once again, she was totally out of line by not addressing the respect of Chamber decorum. I am not the only individual who regards the Council Chambers unsafe. SAY WHAT YOU MEAN AND MEAN WHAT YOU SAY: Since the majority is so concerned about voter ID, I would like you to put on the agenda that in order to attend the City Council Meetings commencing on October 1 or October 22 that you must show proof of residence. (I learned that one speaker in the past meeting of July 16 was from Glendora.) This City Council is losing control and it must stop before people are injured. It is fine to disagree peacefully and respectfully but the attacks and verbal confrontations by those in the Chamber must STOP! It is time the Council and the City Attorney roll up their sleeves and put Huntington Beach back on track. I have lost confidence in the majority four to govern. The rumbling from residents reveals unhappiness about the performances in three key issues: the "unsolicited" library outsourcing to Library Systems and Services and the subsequent ordinance of a book review committee; the City Attorney's settlement with Code 4 owner Kevin Elliott for the Pacific Air Show lawsuit along with his lack of his transparency to the tax payers; and the countless, expensive and frivolous lawsuits our City Attorney files against the State of California. The Council majority along with the City Attorney need to leave their political agendas at home and work together with the various departments within the City of Huntington Beach to accomplish fundamental tasks for its community. Respectfully submitted, John Carser ,��NTiNsr� 2000 Main Street, ✓F� �Y oti Huntington Beach,CA 92648 City of Huntington Beach 9� z APPROVED 7-0 �acF�o ... .�P���' AS AMENDED coUNTY File #: 24-549 MEETING DATE: 8/6/2024 Subject: Item Submitted by Council Member McKeon -Taxpayer Transparency - Evaluation of City Tax- Sharing Recommended Action: Direct the City Manager and Finance Director to report back to Council at the September 17, 2024 City Council Meeting with a written report and oral presentation with the answer to all of the aforementioned questions. Attachment(s): 1. Council Member Item - Taxpayer Transparency City of Huntington Beach Page 1 of 1 Printed on 7/31/2024 poweref4 LegistarTM City Council/ ACTION AGENDA August 6,2024 Public Financing Authority COUNCIL MEMBER ITEMS 30. 24-541 Item Submitted by Mayor Van Der Mark Approved - Request to Prepare an Ordinance Declaring Huntington Beach to be a"Parents' Right to Know" City Recommended Action: Direct the City Manager to work with the City Attorney to prepare an Ordinance for introduction at the September 3, 2024 City Council Meeting declaring that Huntington Beach is a "Parents' Right to Know"City, that no educator stands in the way of informing parents of their child's gender identity or gender expression, and declaring that the City has an interest in challenging the State on AB 1955 or joining a parent's challenge to the State on AB 1955.. Approved 4-3(Moser, Bolton, Kalmick-No) 31. 24-547 Item Submitted by Council Members Kalmick, Bolton, and Moser Approved as Amended - Financial Transparency - Determine Total Cost of Pacific Airshow Settlement By a vote of 7-0, the City Council approved waiver of Attorney-Client privilege for information/discussions presented by the City Attorney to City Council in the Closed Sessions between 12/2022 to settlement date related to the Pacific Airshow Settlement. Recommended Action: Direct the City Manager to hire an independent economic firm to analyze Pacific Airshow financials, different from the firm hired by VHB to publish similar data. contract an reports for marketing entities) to review the settlement agreement costs and value, City ndcrctanding. Approved 4-3(Moser, Bolton, Kalmick-No) At approximately 10:59 PM, the City Council voted and unanimously approved continuing business after the hour of 11:00 PM. 32. 24-549 Item Submitted by Council Member McKeon Approved-Taxpayer Transparency - Evaluation of City Tax-Sharing Recommended Action: Direct the City Manager and Finance Director to report back to Council at the September 17, 2024 City Council Meeting (or soon thereafter at the City Manager's discretion) with a written report and oral presentation with the answer to all of the aforementioned questions. Approved 7-0 as amended ADJOURNMENT- 11:21 PM Page 10 of 11 °<ct-:771-.;-.4',0-4. CITY OF HUNTINGTON BEACH COL/Nisi°‘111 City Council Meeting - Council Member Items Report To: City Council From: Casey McKeon, Council Member Date: August 6, 2024 Subject: Taxpayer Transparency - Evaluation of City Tax-Sharing ISSUE STATEMENT There have been a number of questions raised recently about how taxpayer dollars are spent and how taxpayer dollars are shared in favor of big business in the City. The truth of the matter, is that the City works with big business all of the time to establish long-term, lucrative, and/or economically beneficial relationships. Due to the public's interest in how taxpayer dollars are spent or are shared for big business, I am requesting that City staff present the following financial information at the September 17, 2024 meeting: 1. What tax-sharing or incentives were provided to Amazon for locating its warehouse in north Huntington Beach. Additionally, how much is/was the "sharing" or City tax/revenues foregone by the City (i.e., the difference between what the City would have received in the aggregate over the years at the regular rate of tax, minus what the City actually has received in the aggregate over the years at a discounted rate of tax) as a result of these incentives. 2. What was the total amount of foregone rent revenue as a result of the City Council's March 31, 2020 action implementing rent abatement for tenants at various City-owned facilities related to COVID relief. How much did the "sharing" or "discount" or "write-off" of rents that were contemplated by leases between lessees and the City (i.e., the difference between what the City would have received in the aggregate over the years at the regular rent rates specified in the original leases, minus what the City actually has received in rents, if anything, during the rent abatement period) equate to. a) List the Businesses/Lessees who were subject to the COVID rent abatement program. b) List the time period of when COVID rent abatement was in effect for each of those Businesses/Lessees. c) List the amount of rent each Business/Lessee did not pay during that rent abatement period. d) Identify when the rent abatement period ended. 2000 Main Street,Huntington Beach,CA 92648 I www.huntingtonbeachca.gov 807 • 3. What tax-sharing or incentives have taken place due to the agreement(s) with the Car Dealerships for locating/improving car dealerships in Huntington Beach. Additionally, how much is the "sharing" or City tax/revenues foregone by the City (i.e., the difference between what the City would have received in the aggregate over the years at the regular rate of tax, minus what the City actually has received in the aggregate over the years at a discounted rate of tax) since the inception of the subject Agreement(s). 4. How much property tax per year will the City forego through the Breakwater and Elan property purchases. Further, how much foregone property tax will be owed to Local Government and Education Agencies, i.e. the County of Orange, Coast Community College District, Municipal Water District of Orange County etc., upon conveyance of the properties. 5. Any other example of cost sharing, tax sharing, or other type of financial concession to a private entity in the last five years. RECOMMENDED ACTION Direct the City Manager and Finance Director to report back to Council at the September 17, 2024 City Council Meeting with a written report and oral presentation with the answer to all of the aforementioned questions. ENVIRONMENTAL STATUS This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has not potential for resulting in physical change to the environment, directly or indirectly. STRATEGIC PLAN GOAL Non Applicable -Administrative Item 2000 Main Street,Huntington Beach,CA 92648 I www.huntingtonbeachca.gov 808 From: Estanislau.Robin To: Moore.Tania Subject: FW:Supplemental communication for City Council Meeting Date: Friday,August 2,2024 1:12:05 PM From: pacj<pacj_03@yahoo.com> Sent: Friday, August 2, 2024 1:04 PM To: Estanislau, Robin <Robin.Estanislau@surfcity-hb.org>; CITY COUNCIL(INCL. CMO STAFF) <city.council@surfcity-hb.org> Subject:Supplemental communication for City Council Meeting Robin, Can you please forward this to the appropriate party? Thank you. Council members: There are two items on the agenda regarding transparency. One is on the air show settlement and one is on City Tax Sharing. I suggest not moving forward with either study. The State Auditor is conducting a study on the air show settlement. Staff should be prepping for that effort. I do believe in transparency and financial responsibility and request that the entirety of the council comment on the recruitment of a City Manager. The CM in essence is our City's CEO. It's a critical post. Our former CM left in November 2023. When I wrote to the council and asked about the recruitment process I was told by a staff member there was none and that"we are exploring our options." When I asked about the options there was no response. We currently have the Chief of Police acting as Interim CM. Is the council planning on keeping our chief as interim cm indefinitely? Are you recruiting for a new Chief of Police? Lastly, I am confused by the City's official facebook Government Page. There are important updates regarding vector control, city employee awards and community events. There are also commentaries which appear political in nature. I was advised that historically the Govt Page is the Mayor's page and that past mayors have used it to deliver their opinions some of which were political in nature. In the spirit of One HB, perhaps it would be better to keep the neutral Government page and add an additional page for the HB Mayor. Thank you, Pat Quintana SUPPLEMENTAL COMMUNICATION Meeting Date: 8/6/2024 32 (24-549) Agenda Item No. From: StarsStrioes To: CITY COUNCIL(INCL.CM0 STAFF) Cc: suoelementalcomm()surfcity-hb.ora Subject: Re:8-6-24 City Council Meeting Date: Saturday,August 3,2024 9:30:49 PM File 24-549, Agenda Item 32 I support this agenda Item. I do not trust the previous city council. I think there were many backroom deals that we are not privy to. I would love to see the actual numbers and details as to what they have committed us taxpayers to. Lets turn the flashlight on and expose these details. Robert Cloyd Huntington Beach Resident SUPPLEMENTAL COMMUNICATION 8/6/2024 Meeting Date: 32 (24-549) Agenda Item No. From: —Lc_ To: CITY COUNCIL(INCL.CMO STAFF) Cc: suoolementalcomm(asurfcity-hb.ora Subject: Re:8-6-24 City Council Meeting,6pm Date: Saturday,August 3,2024 9:45:32 PM File 24-549, Agenda Item 32 I SUPPORT THIS I believe this information is absolutely necessary to have. There have been some numbers thrown up in the air, but I think actual figures are required at this point. Thank you for this. Jean Cloyd resident of huntington beach From: Fikes.Cathy To: Aaenda Alerts Subject: RN:Council Mtg.of 8/6/2024 Date: Monday,August 5,2024 11:36:33 AM From:gelliottl@socal.rr.com <gelliottl@socal.rr.com> Sent: Monday,August 5, 2024 10:34 AM To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org> Subject: Council Mtg. of 8/6/2024 Re Agenda Items 31, 32, and 30 I support exposing monkey business (Item#31), question "giving the business" to an already overworked staff(Item#32), and bemoan yet another example of someone who should mind her own business (Item#30). Cheryl Elliott(Resident of 44 years) From: Janet Michels To: CITY COUNCIL(INCL.CMO STAFF):suoolementalcomm(alsurfcity-hb.ora Subject: Agenda items Date: Monday,August 5,2024 8:19:33 PM City Council, It is again with profound disappointment that I feel required to submit a letter on several of tomorrow night's agenda items. Please accept the following comments from an interested, engaged and deeply concerned citizen. Item 24-541: It appears that several of you continue to seek out issues that are unrelated to your authority as City Council Members or the governance of our city. Just how many "statements" of support or opposition will be enough? This does not accomplish anything productive, and despite the statements by the Mayor from the dais and on the city website stating her desire to bring unity and reduce divisiveness, this item has no purpose other than....wait for it...continue to fracture our city and foster divisiveness. Please focus on your job,which, as a reminder, is pasted below from the City's website. Mayor,you can do better than this. Your item in no way meets the basic criteria for your position. The City Council establishes policies and priorities for the provision of effective and efficient municipal services. The City Council is the city's legislative authority and sets the policies under which the city operates. The City Council's duties include establishing goals and policies, enacting legislation, adopting the city's operating budget, and appropriating the funds necessary to provide service to the city's residents, businesses, and visitors. Item 24-549 (with a nod to 24-547) On the face of it, Councilmember McKeon's item is one I wholly support, and have done so within the scope of my role on the Finance Commission. In fact for over 6 months, we have discussed Meadowlark over and over and over again since January 2024 with several members of our commission seemingly having no objective other than to identify some sort of"gotcha" to reveal seemingly nefarious activities on behalf of city staff. In fact, in order to get off the merry-go-round of the same topic discussion for 6 months, I proposed a task force to do a better job with the partnership which will commence in 2025. In my opinion, to require the city to do a full analysis of foregone rent (of which Meadowlark was a key target) during a (hopefully) once in a lifetime pandemic seems to have no beneficial purpose. Transparency is all well and good, if it has a role in improving the future of the city. Mr. Mckeon lists several items, but the one he does not list is the release of the recent airshow settlement, which has gotten the most attention from within the city, from all political persuasions and also caught the attention of legislators and state administrators. However, Mr. McKeon lists a general#5 for other topics, and I for one, would appreciate him adding the full cost analysis of this settlement. Even people who can do basic math come up with very big numbers in terms of scale, lack of city control, and real costs to the city in terms of giving away the city's few direct revenue opportunities AND the city paying for most of the major labor costs for the air show itself. I would recommend Mr. McKeon publicly supports item 24-547 as consistent with his own item. Further. I would suggest amending to add some language that would describe specifically what would be gained by each analysis being requested ...something several council members should also do and their designates on commissions should learn as well. Thank you, Janet Michels Janet Michels 714.448.3095 From: K Carroll To: suoolrmentalrommcesurfaty-hb ow:CITY COUJICIL(INCL CMO STAFF) Subject: CityCouncil Mtg.August 6,2024-Items 24-541 Parents Right to know.24-549 Tax Payer Transparency-Tax Saying Date: Monday,August 5,2024 9:19:22 PM Greetings Mayor Van Der Mark,Pro Tern Pat Burns,Esteemed Council Members Casey McKeon and Tony Strickland. First of all,I am super amazed that you are keeping up on items.I have a few items that I would like to share my thoughts: 24-541:Parents rights.Gracey Van Der Mark Gracey,I cannot thank you enough.Our kids are safe with you.We are with you more than you know. Do people know that Newsome is making it mandatory that Teachers are prohibited from telling a parent that their kids may be identifying as another sex and name changes...bc their parents may cause them to commit suicide?They need to monitor bullying in schools that does instigate bullying be of no school intervention.Pretty sure parent's already know.And,if cities don't adhere;he holds back funding.Newsome penalize's citiies financiancilly for not paying for these porno books in schools and libraries of explicit male on male illustrations sexual acts and girls masterbation.With Newsome's newly passed bill;teachers are prohibited from notifying the parents if their child shows up one day and says he wants to change his gender...name..from Sam to Suzie;.bc,a teacher has influenced him/her. Manipulating our children..be they say'we spend more time with them than parents'. It protects teachers and groomers. "Secrets"https•//www.youtube.conr/watch?v--oH2_kUzNbUk https://www amazon.com/Secret-Pizza-Parpr-Adjrl-Rubin/dp/0803739478/ref—sLLl? crid=10i0F17A4H3T.O&dih=eyl2ljoiMST9 rX7yfq tt4Tnithlpzl,pOKri.PROF5Wc56Dit1'1aV1C7RvswRvsDxR6livf-Tnk_Qvi.RPith3OeyWZ7- _neic3gjSn7HfiRzV1CitTVYOrJNd7p4LkCnxUU5sRPZtbmgd9VUhSV Rw7H- VUUpdnVkKrKj VnnRTK40KQWJTwDIF3t I I LsCILDapIF.6UT2T6120JA4i WJe7frs4jMsDeujHB I X 1 V 7TEFf9aiXIDsoBlsfUTZaO)Ergs.iRPImbjddhRP- SMCV4iJI IS3e6hNSKmT9yI.OoRmTSRF.k&diljarse.&keywords=secret+pi7za+nprry&c}d=17121264R2&sprefix=secret+pi77a"/2Capsa/2C217&sr=R- 1#customerReviews 'Let's keep this between you and me..know,your parent's don't understand you...I won't tell your parents..you won't get in trouble'...the kids are in their most vulnerable stage. My 14 year old daughter came home from HB Highschool and she showed me a'gift'that her(male)art teacher made it and had given it to her totally inappropriate.She knew it was not right. For me,I had an incredible teacher(5th grade)that summoned my mom. be she thought I was'stressed'...that's what my mom told me. Domestic violence.I will never,ever forget the impact this teacher made on me be I thought magically she knew and was going to fix things.Teachers are mandatory reporters.I would really appreciate it if they could just be persistent with that instead of sexual choices.I don't think people care about that.Teachers and Parents need to be partners. From all of this,I am saying that if we could have our teachers concentrate on academics and report on issues to the appropriate agency and involve parents,that would be great. I would also like to see the stats on suicide up to date on kids that have committed suicide be their parents shunned them.I really feel that era is long gone.I'm in my 70's,HRD for orver 40 years and there has only been one report outside of work and that was in the 70's.That era is gone. Parent's with LGBTQ kids need to stop instilling in them that they are victims...THEY are making them victims. 24-549 Casey McKeon.TaxPayer Transparency.Evaluation of City Tax Tax Sharing. Thank You Casey.You are a no BS,no nonsense guy.I can't wait to see the results.I know that our family and many of the other neighbors will have a pre lift off for the air show and after party on the Airshow.But,I cannot wait to see the other facts.I am coming to this meeting to relish in the detailed results.Huge...thank you for all you do. You have contributed so much and appreciated more than you know. Pro Tem Pat Bums and Councilman Tony Strickand,as always.thank you so much for your immense contributions. Best regards, Kris Carroll From: Celeste Rvbicki To: CITY COUNCIL(INCL.CM0 STAFF):suoolementalcommCa�surfcity-hb.ora Subject: No on item 24-541,Yes on item 24-542 Date: Monday,August 5,2024 9:21:11 PM City council members, This item, 24-541, only serves to prove what we already know: Mayor Gracey hates the LGBTQ+community(including kids)and our mayor did not read or understand the governor's bill. AB 1955 does not prevent"educators from informing parents of their child's gender identity or gender expression"it only prevents the government from FORCING them to out students to their parents. If our goal is truly to strengthen children's relationships with their parents we should be setting the example by being open,welcoming to diversity, and respectful to others. That's clearly not the council majority's priority. This is maga virtue signaling and nothing more. It could have been a Facebook post, and I ask that the mayor please stop wasting everyone's valuable time with this crap. Item number 24-542 should be a no-brainer. The Huntington Beach community is rightfully outraged at the details revealed in the Pacific Airshow settlement. Taxpayers deserve a thorough review and breakdown of the total costs and impact(something that should have have been done before the majority agreed to it)I look forward to this item passing with Casey McKeon's vote,if taxpayer transparency actually matters to him. Thank you, An HB taxpayer with children currently in the public school system From: diannef22()vahoo.com To: CITY COUNCIL(INCL.CMO STAFF):suooIementalcomm(asurfcity-hb.orq Subject: Oppose Agenda Item#32 as written Date: Tuesday,August 6,2024 2:56:19 AM As written, Agenda Item #32 only asks for the negative numbers for all of the scenarios presented. Clearly, it's a biased request in an attempt to sway and/or reinforce opinions with data. However, the data requested will only show a partial picture. I would support this item if the data requested was full and complete with regard to each item. Why isn't any of the federal supplementation requested with regard to all of the COVID relief? This item only requests information about the expense side of the ledger, not the revenue side. Why isn't the overall package of the Breakwater and Elon agreement requested? Once again, this item only requests the expense side. By only requesting the expense side of issues that the Council majority have built up to be controversial, they are giving talking points to people who are uninformed about the overall packages. It's a sham political technique and I'm sad to see it here. Let's be transparent and honest with constituents. Sincerely, Diane James From: Steven C Sheoherd Architect To: suoolementalcomrrasurfcity-hb.ord:CITY COUNCIL(INCL.CMO STAFF) Subject: AGENDA ITEMS#31 -TRANSPARENCY IS ESSENTIAL,BUT BEWARE OF THOSE WHO APPLY IT SELECTIVELY Date: Tuesday,August 6,2024 8:57:21 AM I believe transparency is an essential pillar of competent local governance, and because of that strongly held belief, I support the passage of Agenda Items #31 and #32. In voicing my support for transparency, I would be remiss if I didn't mention the utter hypocrisy of the council member putting forth Agenda Item #32. For while I commend this council member's current interest in identifying and informing Huntington Beach residents about various City incentives for "big business," where was this zeal for transparency over the past year regarding the air show settlement? A single vote for transparency by this council member would have released the details of the settlement involving millions of dollars in public funds payments and decades of future public revenue giveaways to a private vendor. This settlement remained largely a secret for over a year and was only revealed after a successful citizen-led lawsuit forced its disclosure. Where was the concern for transparency then? Eventually, Huntington Beach residents will finally be given a full accounting of the air show settlement as it is scheduled to be reviewed by a state auditor. Sadly even this attempt at providing transparency has been threatened to be met by a City of Huntington Beach lawsuit seeking to prevent this review. Excuse my skepticism, but while I strongly support transparency, I will always question the motives of those who employ a selective approach to its application. Steve Shepherd Huntington Beach 92646 From: Fikes.Cathy To: Agenda Alerts Subject: FW:Agenda item 24-541 Date: Tuesday,August 6,2024 8:55:47 AM From:Adam Kelly<adamscottkelly@gmail.com> Sent: Monday, August 5, 2024 9:01 PM To: CITY COUNCIL(INCL. CMO STAFF) <city.council@surfcity-hb.org> Subject:Agenda item 24-541 I'm writing against agenda item 24-541. The bill prohibits ordinances requiring teachers/schools to out students without their consent, no more no less.Teachers and schools should not be forced to out students without a student's consent. Students have their own right to privacy, especially when it comes to confidences they share with trusted members of their community.As much as it probably hurts some authoritarian parents'feelings, parents do not own their children. If a child chooses to share personal information such as their gender identity preference to a teacher or a school staff member and not their parent,that is for the student to decide. I'll add that if your kids aren't sharing information like that with you as a parent, that is on you.That is a failure as a parent to open safe avenues of communication with your child. It's shocking that Gracey would want the government to mandate disclosure of a student's private information. But I guess in her mind, if you're a terrible parent,you can have the government make your kids share their private feelings and identity with you. It is also pretty obvious that agenda item 24-541 and the public statement she had city staff make on her behalf is a distraction from Gracey and company's atrocious settlement with the Pacific Air Show and their buddy Kevin Elliot. I'm also writing in support of items 24-547, and 24-549. Not only am I disgusted by the obfuscation committed by the Republican Council members regarding the Air Show Settlement, I am also bewildered that any city leadership would buckle to a private corporation like that and sell our city out. If Michael Gates is too cowardly to fight a single company he should step down from office. It is clear we need oversight and to have this tremendous payout investigated. Hopefully we will see the criminals that let this settlement go through be investigated and prosecuted. Huntington Beach deserves justice. Thank you, Adam Kelly From: Fikes.Cathy To: Agenda Alerts Subject: FW:Another Meeting Another Circus Date: Monday,August 5,2024 5:44:14 PM From:J C<qhlady@me.com> Sent: Monday,August 5, 2024 5:30 PM To: Dan Kalmick<dan@dankalmick.com>; CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity- hb.org>; Save Surf City<savesurfcityhb@gmail.com> Subject: Re:Another Meeting Another Circus Gee Dan,you sound really nervous about Council Member Casey McKeon's Agenda Item 32 On Aug 5, 2024, at 5:07 PM, Dan Kalmick<dan( 1dankalmick.com>wrote: View this email in your browser Tomorrow night, this Council Majority continues to find distractions from the real business of the City. Mayor Van Der Mark has submitted an agenda item to declare HB a "Parents' Right to Know" City and potentially sue the state over AB1955, signed into law last month. It doesn't appear the Mayor has actually read the law, as AB1955 only applies to School Districts and stops school districts from forcing teacher to "out" their students; it maintains status quo. Discretion still lies with the teacher or administrator. This bill maintains the relationship between the parent, student and teacher. Read the law for yourself here and Assembly analysis here. The City of Huntington Beach doesn't need another lawsuit to deal with, especially one that has nothing to do with City Business. This item is a distraction from the AIRSHOW SETTLEMENT. Some have estimated it to be a giveaway of nearly $100million over 40 Years to a campaign donor. If you haven't read in the papers, OVSD School Board Trustee, Gina Clayton-Tarvin had to sue the City Attorney to have the Airshow Settlement (a public record) released to the public. It differs greatly from what the City Attorney released as an 'executive summary' more than a year ago. The City Attorney and the Council Majority agreed to give away tens of millions of taxpayer dollars to a political supporter without knowing the cost of the settlement, what our liability was (if any) and what type of value they created with such a deal Council Members Bolton, Moser and I drafted our own agenda item to get a proper accounting of what the settlement agreement is actually going cost taxpayers, what the settlement agreement is worth and what the Airshow actually generates in revenue to the City. Common sense transparent government: You can read our agenda item for tomorrow night HERE. A non-exhaustive summary of compensation to the Airshow for unproven losses is as follows: 1. Long-Term Contract: c A 10-year exclusive contract with three 10-year extensions (totaling 40 years) that only the Air Show can terminate. 2. Financial Compensation: c Cash payments of$5million and potentially an additional $2 million for unproven losses. c $550,000 for environmental clearance, an unprecedented move for any applicant (and three additional EIRs). 3. Parking Revenue: o All parking revenue: RVs (which is substantially marked up to $4,500 per spot) and up to 3,500 parking spaces (yielding hundreds of thousands of dollars of revenue to the Airshow operator annually as opposed to the City). o The ability to buy every single public parking spot in the City for $10 each with no inflation escalator (what does a parking spot cost in 2064?). 4. Waived Fees: o All fees, including those for security and police services, are waived (hundreds of thousands of dollars annually). o Obligation to assist in mitigating unspecified third-party fees. 5. Contract Sale Rights: o The Airshow operator can sell the contract to any buyer at any time. The City can only object to such a sale with a super majority of City Council vote, effectively relinquishing control over future partnerships. Although City Attorney Michael Gates claims this a fair compensation, from this settlement agreement we can see the City committed tens of million of taxpayer dollars without public input, for a single day's event cancellation with no investigation of actual damages or liability. Rhonda Bolton, Natalie Moser and I have called for the Attorney General to open an investigation into the agreement for potential gift of public funds. The Council Meeting is tomorrow night, August 6th at 6pm, at Civic Center, 2000 Main St. You'll have anywhere from 1 min to 3mins for Public Comment and/or you can email city.council@surfcity-hb.org. You can also watch the meeting on YouTube Live or Archived. In Service, Dan Kalmick, Huntington Beach City Council CLICK HERE TO DONATE VISIT CAMPAIGN WEBSITE ®. Copyright©2024 Re-Elect Dan Kalmick to HB City Council-FPPC ID#1460116,All rights reserved. You are receiving this email because you contacted Councilmember Kalmick or are a voter in Huntington Beach Our mailing address is: Re-Elect Dan Kalmick to HB City Council-FPPC ID#1460116 249 E. Ocean Blvd,#670 Long Beach, Ca 90802 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. 8/6/2024 t' k _ m SUMMER [I..jj GCp o-UV ^ r . .. • — ' . n � — . a ., , : "fir .) .r - _l"'•r x ra•.a rye' , 1- "Eye, n' � 95� � ,w' _ v k Congratulations on a very succes-sfu[l • US Ops[r of Surring 440 s �s S 2 1 8/6/2024 ini5" ' C• 4:.oel. RGLPQ Yae]1 Martinez ■ Support Agenoo I©[o o 3© ��.. rents9 000� �0 Knovie 24-541 � a oappoo Agenda o30 ooOZo criv 5K-ahgerin o _ _ _ 2