HomeMy WebLinkAbout2025-10-21Minutes
City Council/Public Financing Authority Regular Meeting and
Special Meeting of the Housing Authority
City of Huntington Beach
Tuesday, October 21, 2025
4 :30 PM -Council Chambers
6 :00 PM -Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
A video recording of the 4:30 PM and 6:00 PM portions of this meeting
is on file in the Office of the City Clerk, and archived at
https :/lhuntingtonbeach .legistar.com/Calendar.aspx
4:30 PM -COUNCIL CHAMBERS
CALLED TO ORDER -4:30 PM
ROLL CALL
Present:
Absent:
Twining, Kennedy, McKeon , Burns, Van Der Mark, Gruel, and Williams
None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION
(Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Lisa Lane Barnes announced supplemental
communications received by her office following distribution of the Council Agenda packet which were all
uploaded to the City's website and Councilmember iPads: Closed Session Item #1 (1 email
communication) and Item #2 (1 email communication).
PUBLIC COMMENTS (3-Minute Time Limit) -None
A motion was made by Burns, with a second by Van Der Mark, to recess to Closed Session .
RECESSED TO CLOSED SESSION -4:30 PM
CLOSED SESSION
1. 25-823 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). People of the State of CalifornialBonta v. City
of Huntington Beach, et al.; Case No. 30-2023-01312235-CU-WM-CJC.
2. 25-824 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Alianza Translatinx, et al. v. City of Huntington
Beach, et al.; OCSC Case No. 30-2025-01462835.
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21 , 2025; Page 2 of 9
3. 25-825 CONFERENCE WITH LEGAL COUNSEL-LITIGATION (Gov. Code section
54956.9(d)(4).): Two (2).
6:00 PM -COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING AND CALLED TO
ORDER A SPECIAL MEETING OF THE HOUSING AUTHORITY -6:00 PM
ROLL CALL
Present:
Absent:
INVOCATION
Twining, Kennedy, McKeon, Burns, Van Der Mark, Gruel, and W illiams
None
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 endorse any particular religious belief or form of invocation .
4. 25-695 Huntington Beach Fire and Police Chaplain Roger Wing
PLEDGE OF ALLEGIANCE -Led by U . S. Navy Commander Joseph T. Gilligan
CLOSED SESSION REPORT BY CITY ATTORNEY -City Attorney Michael Vigliotta announced the
City Council unanimously (7-0) voted to appeal Alianza Translatinx, et al. v. City of Huntington Beach , et
al.; OCSC Case No. 30-2025-01462835. City Attorney Vigliotta added that outside counsel is working on
the Alianza case pro bono, i.e., at no cost to the City. Also, City Council unanimously (7-0) directed
Counsel to initiate litigation in two (2) potential cases. Particulars will be disclosed upon request once
and if action commences .
CITY COUNCIL MEMBER COMMENTS (2-Minute Time Limit) -Mayor Burns announced that October
is Breast Cancer Awareness month, and noted the October 20, 2025, 25th Annual Great Balls of Fire
Golf tournament was very successful.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Lisa Lane Barnes announced supplemental
communications received by her office following distribution of the Council Agenda packet which were all
uploaded to the City's website and Councilmember iPads: City Manager's Report #7 (1 email
communication); Consent Calendar Item #9 (2 email communications); and Council Member Items #12
(4 email communications).
PUBLIC COMMENTS (2-Minute Time Limit due to the number of speakers) -17 Speakers
The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in
the archived video located at https:l/huntingtonbeach.legistar.com/Calendar.aspx.
Love announced the Miss Huntington Beach Scholarship Program and Pageant on October 25, 2025, at
Central Library Theater, presented by the Huntington Beach Sand Dollars. (00:11 :14)
Amory Hanson commented on Ordinances for Introduction, Item #11 (25-833) regarding Ordinance No .
4342 prohibiting the sale and distribution of nitrous oxide . (00: 13:22)
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 3 of 9
Rosa lind Price shared her appreciation for Council's recogn ition of the U. S. Navy's 250th Birthday, and
commented on Ordinances for Introduction, Item #11 (25-833) regarding Ordinance No . 4342 prohibiting
the sale and distribution of nitrous ox ide . (00 : 13:52)
Justine Makoff, Free Rein Foundation at Huntington Beach Equestrian Center in Central Park,
announced the showing of Rescued Hearts documentary at Lido Theater on November 4 , 2025, at 6 PM .
Further details can be found at www.freereinfoundation .org. She also reminded everyone of the Hug and
Groom events held on the first Sunday of every month . (00 : 15:43)
Unnamed Speaker commented on national political issues . (00 : 16 :52)
Tim Geddes commented on the reduced time allowed for public speakers; Californ ia Proposition 50; and
local and national political issues. (00: 18 :02)
Charlie Jackson commented on national and local political issues. (00 : 19:42)
Unnamed Speaker commented on Council Member Items #12 (25-830) regarding invitation to Orange
County Registrar of Voters to present at a Huntington Beach City Council meeting. (00:21: 11)
Unnamed Speaker read a portion of an October 15 , 2025, Voice of OC op ed written by an Ocean View
School District Board of Trustees member. (00 :22 :56)
Paula Schaefer read a portion of an October 15, 2025, Voice of OC op ed written by an Ocean View
School District Board of Trustees member. (00:24 :00)
Unnamed Speaker read a portion of an October 15 , 2025, Voice of OC op ed written by an Ocean View
School District Board of Trustees member. (00 :25 :04)
Unnamed Speaker read a portion of an October 15, 2025, Voice of OC op ed written by an Ocean View
School District Board of Trustees member. (00 :25:48)
Unnamed Speaker read a portion of an October 15 , 2025, Voice of OC op ed written by an Ocean View
School District Board of Trustees member. (00 :26 :47)
Unnamed Speaker read a portion of an October 15 , 2025 , Voice of OC op written by an Ocean View
School District Board of Trustees member. (00:27 :33)
Unnamed Speaker commented on California Proposit ion 50 and on Council Member Items #12 (25-830)
regarding invitation to Orange County Registrar of Voters to present at a Huntington Beach City Council
meeting . (00 :28 :24)
Russ Neal commented on the Huntington Beach Housing Element adverse Appeals Court ruling.
(00 :29 :47)
Ken Inouye expressed appreciation for the multiple Brewing Connections with City Attorney and City
Treasurer meetings that are scheduled and noted his personal questions related to the City's financial
health. (00:30 :58)
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 4 of 9
COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS
Councilman Williams announced his appointment of Dave Chenmault to the Finance Commission.
AB 1234 REPORTING-None
OPENNESS IN NEGOTIATION DISCLOSURES -None
CITY MANAGER'S REPORT
5. 25-835 Free Citizen's Financial Literacy Classes
City Manager Travis Hopkins introduced City Treasurer Jason Schmitt who expressed appreciation fo r
the residents who attended a recent Brewing Connections meeting and announced upcoming dates for
Free Financial Literacy Workshops , a series of consecutive monthly meetings starting in November and
extending into 2026. He noted dates and details are on the City's website.
6. 25-827 Public Works Projects Update
City Manager Travis Hopkins introduced Director of Public Works Chau Vu who presented a PowerPoint
communication titled CIP Project Summary Report -Zone 2 Overlay, with slides entitled: Project
Summary, Project Benefits and Schedule, Financial Project Summary, Conclusion/Photos, CIP Project
Summary -Report 17th Street Arterial Rehabilitation, Project Summary, Project Benefits and Schedule,
Financial Project Summary, Conclusion/Photos, GIP Project Summary Report -Traffic Signal
Improvements at Warner Ave . & Ash Ln. I Millstream Ln. and Main St & Delaware St., Project Summary,
Project Benefits and Schedule, Financial Project Summary, Conclusion/Photos, and Questions?
Councilmember Kennedy and Mayor Pro Tern McKeon explained this report is part of Councilmember
efforts to be transparent with resi dents regarding how their taxes are being spent to maintain quality of
life. Council Woman Van Der Mark and Councilmember Twining expressed their appreciation to Director
of Public Works Chau Vu for this report, as well as the field trip to visit project sites.
7. 25-813 250th Birthday of the U.S. Navy Presentation
U . S. Navy Commander Gilligan, Navy Talent Acquisition Group Southwest, introduced two U. S. Navy
staff members : Master Chief John Lanza and Lt. George Agusta. The presentation to acknowledge the
Navy's 250th Birthday included a short documentary video.
Mayor Burns thanked the men for their service and acknowledged the service of Lou Canter on the USS
Ariz ona battleship who survived the Pearl Harbor attack.
Mayor Pro Tern McKeon, Councilmembers Kennedy, Twining and Williams, and Council Woman Van Der
Mark expressed their appreciation for the U . S . Navy and shared their support for the Navy's recruitment
efforts in Huntington Beach . ·
CONSENT CALENDAR (Items 8 -9)
City Clerk
8. 25-816 Approved and Adopted Minutes
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 5 of 9
A motion was made by Burns, second McKean to approve and adopt the City Council/Public Financing
Authority regular meeting minutes of October 7, 2025.
The motion carried by the following roll call vote:
AYES:
NOES:
Public Works
Twining, Kennedy, McKean, Burns, Van Der Mark, Gruel, and Williams
None
9. 25-803 Accepted the lowest responsive and responsible bid and authorized execution of a
construction contract with KASA Construction, Inc. in the amount of $453,066.00 for
the Schroeder Park Improvements, CC-1656, and authorized a 15% contingency
A motion was made by Burns, second McKean to accept the lowest responsive and responsible bid
submitted by KASA Construction, Inc. in the amount of $393,970.00; and, reject bids 1 -8 and 11 -13,
which were either withdrawn or deemed non-responsive; and, authorize the Director of Public Works to
approve change orders up to a 15% contingency; and authorize the Mayor and City Clerk to execute a
construction contract with KASA Construction, Inc. in a form approved by the City Attorney.
The motion carried by the following roll call vote:
AYES :
NOES:
Twining, Kennedy, McKean, Burns, Van Der Mark, Gruel, and Williams
None
PUBLIC HEARING
10. 25-801 Continued to an October 28, 2025, Special Meeting for Tax and Equity Fiscal
Responsibility Act (TEFRA), with Public Hearing Open, for the Pelican Harbor
Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California
Municipal Finance Authority's {CMFA) Continued Issuance of Tax-exempt Bonds in
an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and
Approve Amendments to Affordable Housing Agreements
SUPPLEMENTAL COMMUNICATIONS PERTAINING TO PUBLIC HEARING
Pursuant to the Brown "Open Meetings" Act, City Clerk Lisa Lane Barnes announced supplemental
communications received by her office following distribution of the Council Agenda packet which were all
uploaded to the City's website and Councilmember iPads: Public Hearing Item #10 (1 email
communication)
Housing Manager Charles Kovac presented a PowerPoint communication titled TEFRA Public Hearing
for Pelican Harbor Senior Housing Project with slides entitled: Background (3), Proposed TEFRA
Hearing, Proposed Amendments, Recommendations, and Questions?
Mayor Burns and Housing Manager Kovac further discussed details regarding the nearly $3M of Federal
HOME Funds; lnclusionary Housing in-lieu fees; rental requirements; source of funds for building the
project; ramifications if this item is not approved by Councilmembers; $5,000 per year payment to the
City; and expected increased interest after 20 years.
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 6 of 9
Councilmember Kennedy, Housing Manager Kovac and a Jamboree Housing representative discussed
details regarding the delay for this Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing ;
anticipated annual rental increases; expected loan payback to the City beginning in Year 16; and typical
debt structure for Affordable Housing projects.
Councilmember Twining, Housing Manager Kovac and a Jamboree Housing representative discussed
details regarding current housing occupancy; number of residents w ith Huntington Beach ties; the strong
possibility some residents could become homeless w ithout this housing project; and noted all funding is
subordinate to Jamboree's lender and would most likely be wiped out if t here was a foreclosure .
Councilmember Gruel and a Jamboree Housing representative discussed details regarding the total
number of Huntington Beach seniors who are unsheltered; the number of Jambo ree Housing projects
reserved for seniors in California ; the City's full access to Jamboree project audited financials ;
Jamboree's yearly audits are required by the lender, investor, IRS , state, county and Huntington Beach ;
Jamboree , as the project developer, contracts with a third-party for day-to-day property management;
and confirmed that Jamboree has never had a project fall into default.
Councilmember Kennedy and a Jamboree Housing representative discussed details regarding how
Jamboree Housing makes money on their projects.
Councilmember Williams and a Jamboree Housing representative discussed details regarding the total
amount of Huntington Beach foregone property tax es over the years for this project; consideration of
increasing the current agreed-upon $5,000 annual payment back to Huntington Beach; and extending
agreement from 60 to 99 years.
Mayor Burns continued the discussion regarding the factors that determine annual rental increases for
this project.
Councilmember Gruel confirmed t h at the tax-ex empt construction bonds ex pired in December of 2024 .
Jamboree Housing representative confirmed for Mayor Burns that if occupancy had occurre d before that
e xpiration date this public hearing would not have been required .
Council Woman Van Der Mark and a Jamboree Housing representative discussed occupancy li mits for
this project.
Mayor Pro Tern McKean asked a Jamboree Housing representative to provide a bit of history on the
parcel selected for this project.
Councilmember Kennedy confirmed with Housing Manage r Kovac that to this point only pro-forma
finan c ials have been available and audited finan cials will most likely be available ea rly nex t year, afte r
complet ion of the first year of operation .
Mayor Burns opened the Public Hearing .
City Clerk Lisa Lane Barnes announced there were no speakers .
Mayor Burns closed the Public Hearing.
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 7 of 9
Council discussion commenced with Councilmember Kennedy stating he would like to have had an
opportunity to discuss increasing the minimal $5,000 annual payment with Jamboree Housing Board
Members and his interest in getting more benefit for Huntington Beach .
Councilmember Williams suggested to continue this discussion to allow time for all Councilmembers to
do a deeper dive into more favorable options .
Councilmember Gruel stated he doesn't expect to find a hidden financial bonanza , and it is important to
remember this is basically a no-margin project.
Mayor Pro Tern McKean asked Community Development Director Jennifer Villasenor to provide the
history of this odd-shaped property before it was identified for this project, as well as the City's effort to
identify affordable housing sites. Mayor Pro Tern McKean noted the parcel's constraints and added the
private sector has been unable to secure funding for a design that meets zoning requirements for parking
and set-back . Mayor Pro Tern McKean confirmed with Housing Manager Kovac that HOME and
lnclusionary Housing funds can only be used for affordable housing. Speaking as a real estate
developer, he expressed appreciation for the three concessions that staff were able to secure from the
project developer and stated his support for this item .
Councilmember Kennedy stated that pushing Councilmembers up against the wall to make a decision for
a situation which they had no control over is not a good way to do business . He added that he believes
the developer can dig deeper into their balance sheet and find a way to increase the $5,000 annual
payment to the City.
Council Woman Van Der Mark confirmed this is a plot of land that no private sector developer could
develop; this plot is currently benefitting 43 or 44 senior citizens; there have not been any calls for public
safety or police response; there have not been any issues with the neighbors; and the good-faith
negotiations that resulted in the developer making three concessions are her reasons for supporting the
recommended action.
Mayor Burns confirmed with Director Villasenor that for the most part this taxpayer-funded project was
approved without any zoning changes because of the minimal parking needed for the anticipated tenant
profile. Mayor Burns stated his concern regarding the extended period of foregone property taxes and
noted Jamboree Housing expects annual rent increases but claims they do not have funding to increase
the $5,000 annual payment to Huntington Beach. He added he would like an opportunity for the Finance
Commission to evaluate the situation and asked if there would be ramifications if this discussion was
continued for a month. A Jamboree Housing representative stated their TEFRA deadline is the end of
October in order to not jeopardize their tax-exempt funding.
Mayor Burns and City Manager Hopkins reviewed the timeline for the process to reach this point, and
City Manager Hopkins confirmed that there was previous communication on this issue with all
Council members .
Councilmember Kennedy confirmed with City Manager Travis Hopkins that this issue was previously
discussed by the Economic Development Commission (EDC), staff and Councilmembers who had
specific interest, and the item could not be agendized until this meeting because of the on-going
discussions and processes required to reach this point. Jamboree Housing representatives confirmed
that during recent negotiations it took them a bit of time to confer with their lawyers , board, and lender for
their approval on the proposed concessions. They also noted the unexpected construction delays at the
beginning of the project due to COVID-19 resulted in the fact there was not time to follow their normal
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21 , 2025; Page 8 of 9
practice of placing occupants in the project before the construction bond deadline. They added that if
they do not meet the October 31st TEFRA extended deadline , they will lose the tax-exempt status on the
bonds, and their lender will most likely not honor the commitment to fund . Jamboree would have to
come up with additional funding to convert from construction to permanent funding.
Director Villasenor explained in more detail the steps required for concession negotiations to reach this
point. Jamboree Housing representatives stated they have exhausted all available TEFRA extensions to
get the construction loan converted to permanent financing .
Council member Williams noted he only became aware of this item when it appeared on the agenda for
this meeting and stated his need for more information before making a decision that will impact
Huntington Beach taxpayers for such an extended time.
Mayor Burns re-opened the Public Hearing and continued it to a date certain: Tuesday, October 28,
2025 .
A motion was made by Williams , second Kennedy to continue the TEFRA public hearing pursuant to
federal law, to an October 28, 2025, Special City Council/Housing Authority meeting, to allow
additional time for staff, the developer, and Councilmembers to explore potential restructuring of
agreement terms to better protect Huntington Beach taxpayers and better align with current
priorities.
The motion carried by the following roll call vote:
AYES:
NOES:
Kennedy, Burns, Gruel , and Williams
Twining , McKeon, and Van Der Mark
ORDINANCES FOR INTRODUCTION
11. 25-833 Approved for Introduction Ordinance No. 4342 Prohibiting the Sale and Distribution
of Nitrous Oxide
Captain Kevin Johnson presented a PowerPoint communication titled Ordinance No. 4342 Prohibit the
Sale or Distribution of Nitrous Oxide, with slides entitled: Prohibit the Sale and Distribution of Nitrous
Oxide (2), Recommended Action, and Questions?
Captain Johnson confirmed for Mayor Burns that letters will be sent to all distributors in Huntington
Beach informing them of the new ordinance and then undercover operations will take place to determine
if anyone is still selling it. The first offense would be a misdemeanor.
A motion was made by McKeon, second Van Der Mark to, after the City Clerk reads by title, approve for
introduction Ordinance No. 4342, "An Ordinance of the City Council of the City of Huntington Beach,
adding a New Chapter 9.94 Entitled "Prohibition on Sale or Distribution of Nitrous Oxide" to Title 9 of the
Huntington Beach Municipal Code to Establish Regulations Prohibiting the Unlawful Sale or Distribution
of Nitrous Oxide in the City."
The motion carried by the following roll call vote :
AYES:
NOES :
Twining, Kennedy, McKeon , Burns, Van Der Mark, Grue l, and Williams
None
City Council/PFA Regular Meeting
and Housing Authority Special Meeting Minutes
October 21, 2025; Page 9 of 9
COUNCIL MEMBER ITEMS
12. 25-830 Approved Councilmember Item Submitted by Councilman Twining and Mayor Burns
-Invitation to Orange County Registrar of Voters to Present at a Huntington Beach
City Council Meeting
Councilmember Twining introduced this item by explaining this is an opportunity to present another
perspective after the recent Unite 4 Freedom presentation. He expressed appreciation for the Protect
HB invitation to join them in a tour of the Orange County Registrar of Voters office and stated he will
make his own arrangements for a tour.
A motion was made by Twining, second Burns to Invite the Orange County Registrar of Voters to present
at a City Council meeting.
The motion carried by the following roll call vote:
AYES :
NOES :
Twining, Kennedy, McKean, Burns , Van Der Mark, Gruel, and Williams
None
CITY COUNCIL MEMBER REQUESTS -Councilmembers requested a 4:00 PM time for the October
28, 2025, Special City Council/Housing Authority meeting.
ADJOURNMENT-At 8:38 PM a motion was made by Burns, with a second by Gruel, to adjourn to the
October 28, 2025, 4:00 PM Special City Council/Housing Authority meeting in 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, November 4, 2025, 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. , v
ATTEST~,~ M~
City Clerk-Secretary
City Cl rk and ex-officio Clerk of the City Council
of the City of Huntington Beach and Secretary of
the Public Financing Authority of the City of
Huntington Beach, California
Mayor-Chair