Huntington Beach City Council/Public Financing Authority Meeting Summary

June 6, 2023

The Huntington Beach City Council convened on June 6, 2023, for a study session at 2:00 PM, a closed session, and a regular business meeting at 6:00 PM. The meeting covered a citywide parking study, the FY 2023/24 budget, a police officers' union contract, a charter review committee, and a controversial proposal to decertify the Beach/Edinger Corridor Specific Plan EIR. The council voted 4-3 on several contentious items, divided along the same partisan lines.

Study Session: Parking Study

• Staff and Consultants: Planning Manager Ursula introduced the parking study; Stefan Turoff of Walker Consultants (a nearly 60-year-old parking planning firm) presented findings. The study was catalyzed by COVID-era outdoor dining conversions and new transportation modes (Uber/Lyft, e-bikes, micro-transit).
• Citywide Findings: Parking requirements are often rigid and derived from ITE (Institute of Transportation Engineers) manuals, which do not account for mixed-use synergy, delivery services, or changes in commuting patterns. Office buildings were found to have ample parking. Health clubs peak in January, and restaurants show wide variance. Retail centers and offices generally had surplus parking.
• Industrial District: The mixed-use industrial center parking was less than 50% full. The district is largely empty after 5 p.m. and on weekends. Recommendations included a catch-all parking requirement for non-industrial uses, eliminating additional parking requirements for change of use, and simplifying the code.
• Downtown: On-street parking was 100% full on weekends, public parking 92% full, but private parking only 53% full (about 4,000 of 4,500 spaces occupied at peak). Peak demand is 4 p.m. on weekends. The study concluded the issue is more about parking management (wayfinding, pricing, valet) than supply. Recommendations include demand-based pricing, investing revenue in access improvements, and exploring in-lieu fee programs.
• Council Discussion: Councilmember McKeon suggested allowing project-specific parking studies. Councilmember Kalmick noted the city has "all the parking spots we're gonna have" and that parking minimums are stifling business, especially in the coastal zone. Councilmember Moser asked that recent fee increases be responsive to the study's data. Staff proposed tabling further action until the strategic planning session.

Closed Session

• Items included: City Manager performance evaluation, labor negotiations with the Police Management Association (PMA), and five existing litigation matters.
• Report: City Attorney Michael Gates reported the council voted 7-0 to authorize an appeal to the California Supreme Court in the Kennedy Commission v. City of Huntington Beach case (2015 litigation regarding attorneys' fees).

Regular Business Meeting Highlights

• Pledge and Invocation: Pledge led by Councilwoman Bolton (her birthday); invocation by Huntington Beach Police and Fire Chaplain Roger Wing.
• Proclamation: Mayor Strickland recognized May 23rd as "Sammy Hagar Day" for the rock star's investment in the new Cabo Wabo Beach Club at the Waterfront Beach Resort, noting the Hagar family's charitable donations.

Public Comments (12 speakers)

• Mike Ali and Ann Dunsmore (Angel Force USA): Invited the council to a veteran suicide awareness event. Dunsmore stated that 30,000 veterans have died by suicide since 9/11, compared to 7,000 in combat, and that at least 22 veterans die by suicide daily (possibly up to 45).
• Amory Hanson: Voiced support for item 27 (EIR decertification), stating the Bellaterra area "has become overdeveloped. Enough is enough."
• Andy Einhorn: Accused Councilwoman Van Der Mark of having "bigoted and hateful" comments and participation in activities led by white supremacists, citing the Anti-Defamation League and an Orange County Weekly article. He requested, for the fifth time, an external ethical investigation.
• Russell Neal: Expressed opposition to Pride Month, calling it an "assault on our nation," and criticized the library's "rainbow book month program and pride activity kits" as targeting and grooming children.
• Ken Innaway: Recalled failed ballot measures (Measure EE in 2002, Measure E in 2004) and opposed item 26 (charter review committee), urging diversity on any ad hoc committee.
• Pat Goodman: Criticized the nearly $8 million Pacific Air Show settlement, claiming broken campaign promises and demanding justification.
• Kenny Noah: Supported the air show but questioned the settlement; he met with the City Attorney on May 26. He noted the city attorney said information was unavailable due to "certain current circumstances."
• Connie Boardman (former mayor): Defended the LGBTQ+ community and praised librarians for featuring Pride Month books, stating the hate is "harmful and dangerous to our community."
• Melvin Sterling: A Navy veteran and former emergency department director, he called for an end to hate and bigotry.
• Adam Wood (Building Industry Association): Opposed item 27, stating it would result in litigation and that AB 2011 (taking effect in less than 30 days) would lead to denser, state-controlled housing. He said the BIA has not found a business owner who understands the goal of the decertification.
• Unnamed speaker: Cited a Visitors Bureau study showing the air show generates $120 million annually in economic impact (over $840 million over 7 years), calling criticism of the settlement "ridiculous."

City Manager's Report

• Vector Control Board: Trustee Mike Posey submitted the May report.
• Quality of Life Community Survey (Dr. Richard Bernard, FM3): Conducted May 10-16, 2023, with a random sample of 533 adult residents. Margin of error ±4.4% (full sample) or ±6.2% (split-sample questions). 78% rated Huntington Beach as an excellent or good place to live; 41% said the city is headed in the right direction, 41% said the wrong track, 18% didn't know. The top "extremely/very serious" problem was homelessness, followed by cost of housing and cost of living. 67% were satisfied with city services. The most common information sources were word of mouth, city mailers, and the SANS recreation guide. Councilmember Kalmick noted statistically relevant data was finally available; Councilmember Moser asked for drill-down demographic details.

City Attorney's Report

• City v. State Department of Finance: The state's DOF confirmed payment of $22.4 million (plus interest, ~$25 million) to the city, with no appeal. Combined with the earlier $6.8 million award, the city will receive approximately $32 million.
• Pacific Air Show Settlement: Gates defended the settlement process, stating it was handled identically to all other cases (closed session review, written terms, council vote). He cited Government Code sections requiring disclosure of the "substance" of the agreement, not the full document, and noted no council member had ever raised ethics concerns. Councilmembers Bolton and Burns defended the process; Councilmember Moser suggested a judge might decide whether the settlement should be public. Councilmember Kalmick expressed frustration with public criticism, saying "the three of you guys keep going to the papers and bashing us."

Consent Calendar (Items 16-23)

All items passed 7-0:

• Approved minutes of May 16, 2023 (with a minor correction noted by the City Clerk)
• Annual Military Equipment Use Report (AB 481) – renewed Ordinance No. 4255
• Professional services contract with Enterprise Automation for SCADA systems ($1,350,000 over 3 years)
• Fiber optic construction contracts: Crosstown Electrical & Data ($445,480 for Garfield Ave), International Line Builders ($250,656 for Oak View Community Center), Crosstown Electrical & Data ($625,650 for Gothard St, with $149,805 appropriation from Traffic Impact Fees), Elecnor Belco Electric ($145,763 for Central Library, with $90,815 appropriation from PEG funds)
• Infrastructure Fund Annual Report for FY 2021/22

Public Hearing: FY 2023/24 Budget (Item 24)

• Presentation (Sunny Han, Acting CFO): The proposed budget is structurally balanced with a planned $3.6 million surplus. Total sources: $289 million (recurring revenues $278M, one-time revenues $2.3M from Emerald Cove settlement, planned use of reserves $8.8M). Total expenditures: $285 million. Recurring revenues are expected to increase by $4.8 million. Personnel costs increase by $10.6 million (primarily workers' comp, PERS normal cost, and prior MOUs). The CIP totals $41.2 million (up 11% for infrastructure). The budget includes 11 new general fund positions (city attorney's office, clerk's office, communications, community development, human resources).
• Pension Status: CalPERS return was 21.3% in FY21 (funded ~103%), but -7.5% in FY22 (funded ~88%). The budget includes a $2.6 million transfer to the Section 115 trust. The UAL payment projection shows the trust being depleted by FY 2030-31, with projected deficits beginning in FY 2025-26.
• Reserve Policy: Staff recommended consolidating five assigned fund balances (city view replacement, triple flip, strategic initiatives, housing agreement, year-end fair value) into the Economic Uncertainties Reserve to meet the two-month reserve requirement. Any use of rainy-day reserves would require a 6/7 council vote, with replenishment within three fiscal years.
• Paving Cycle: City Engineer Tom Herbell recommended returning to a 12-year paving cycle (instead of 9-year) because the 9-year cycle costs an additional $2.5 million annually ($22.5 million over the cycle) and would only increase the Pavement Condition Index from 83.4 to 84.4 (on a 1-100 scale).
• Public Hearing: One speaker (Amory Hanson) supported the new communications positions (item 24H).
• Council Action: Councilmember Kalmick stated he was not prepared to vote, requesting department heads identify modest reductions to address budget year plus two (FY 2025-26). The council voted to continue the public hearing to June 20, 2023, keeping the hearing open to avoid re-noticing. The motion passed unanimously (7-0).

Administrative Item: POA MOU (Item 25)

• Presentation: The proposed three-year Memorandum of Understanding with the Huntington Beach Police Officers' Association (July 1, 2023 – June 30, 2026) includes 5% wage increases in each of the three years, special pay increases (e.g., advanced POST certificate, chief pilot), longevity adjustments up to 15% for sworn employees, retention pay for non-sworn employees, clarifying language on work schedules, and updates to uniforms, assignments, job sharing, and alternative dispute resolution.
• Fiscal Impact: Total cost $12 million over the contract term ($2.9 million in FY 2024-25, $3 million in FY 2025-26, and $1.5 million in FY 2026-27, as stated in the presentation).
• Discussion: Police Chief Eric Parra confirmed approximately 27 officer positions are currently open. Councilmembers expressed support for the contract as a recruitment and retention tool. Councilmember Kalmick noted the city will need to find additional revenue sources; Mayor Strickland stated he would not vote for a sales tax increase.
• Vote: Passed 7-0.

Councilmember Item: Charter Review Ad Hoc Committee (Item 26)

• Proposal (Councilmember Burns): The Mayor (Tony Strickland) would lead an ad hoc committee of himself and two other council members of his choice to recommend proposed charter amendments, returning to the council in July 2023. The City Clerk would provide a timeline for placing amendments on the March 5, 2024 ballot.
• Discussion: Councilmembers Kalmick, Moser, and Bolton opposed the ad hoc approach, citing concerns about closed-door meetings, lack of transparency, and the cost of the previous charter review process. They noted the prior charter review commission was public and rigorous. Councilmember Burns countered that any recommendations would come back to the full council for public input and require voter approval.
• Vote: Passed 4-3 (Strickland, Van Der Mark, McKeon, Burns in favor; Kalmick, Moser, Bolton opposed).

Councilmember Item: Beach/Edinger Corridor EIR Decertification (Item 27)

• Proposal (Councilmember McKeon): Directed the City Attorney and City Manager to return with a plan to decertify the 2010 Beach/Edinger Corridor Specific Plan (BECSP) EIR and vacate all associated findings. McKeon argued the EIR is "stale" and "obsolete" due to new state housing laws (e.g., AB 2011, SB 35) that were not contemplated when the EIR was certified.
• Discussion:
  • Councilmember Moser and Bolton questioned the intent and legal feasibility. Staff (Luna Renosa) clarified that an EIR is a disclosure document, not a policy document; the EIR analyzed 6,500 units (with findings reducing to 4,500), but only 1,900 units have been constructed or permitted. She noted there is no established CEQA mechanism for decertifying an EIR and that decertification would eliminate cumulative mitigation measures (e.g., intersection improvements) and require each project to undergo individual CEQA review, which would be more time-consuming and costly.
  • Adam Wood (BIA) warned of litigation and that AB 2011 would result in denser, state-controlled housing. The council received a letter from auto dealers expressing concern.
  • Councilmember McKeon stated he would be open to staff recommending repeal of the entire specific plan, but staff noted that would require a new EIR and could revert zoning to commercial. Councilmember Kalmick called the proposal "not a serious policy goal" and said it would be anti-business.
• Vote: Passed 4-3 (Strickland, Van Der Mark, McKeon, Burns in favor; Kalmick, Moser, Bolton opposed).

Key Outcomes

• Parking Study: No formal action; staff will revisit at the strategic planning session. Councilmembers expressed interest in flexible parking standards and demand-based pricing.
• Budget: Continued to June 20, 2023, with the public hearing left open; staff will seek department head input on reductions and additional revenue options.
• POA MOU: Approved 7-0 for introduction.
• Charter Review Committee: Approved 4-3; Mayor will lead the ad hoc committee.
• BECSP EIR Decertification: Approved 4-3; staff directed to return with a plan (no set date).
• Budget (FY 2023/24): Not adopted; continued to June 20, 2023.
• Special Meeting: Scheduled for June 8, 2023 at 9:00 AM at the Huntington Central Library (Rooms C&D).
• Next Regular Meeting: June 20, 2023.

Note on Discrepancies

The presentation of the POA MOU fiscal impact listed fiscal years as "FY 24-25" ($2.9M), "FY 25-26" ($3M), and "FY 26-27" ($1.5M), which is inconsistent with the stated contract term (July 1, 2023 – June 30, 2026). The transcript does not resolve this discrepancy.