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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Huntington Beach City Council/Public Financing Authority Meeting - May 21, 2024

City Council — Tuesday, May 21, 2024

BodyHuntington Beach, California

SessionCity Council

DateTuesday, May 21, 2024

StatusFILED

Video Record

0:00 / 3:41:17

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:00

Mr.

0:00

Alignment, go the other way.

0:03

Very good.

1:03

I'd like to call the meeting of the City Council public financing authority to order.

1:07

City Clerk, may you call the role, please?

1:09

Yes.

1:10

Councilmember Mosier.

1:11

Here.

1:12

Councilmember Bolton.

1:13

Here.

1:13

Mayor Pro Tem Burns?

1:15

Here.

1:15

Mayor Vandermark?

1:16

Here.

1:17

Councilmember Strickland.

1:18

Councilmember McKeon?

1:20

Here.

1:20

Councilmember Kalmick.

1:21

Here.

1:22

All present.

1:23

Thank you.

1:23

City Council member comments.

1:25

Would anybody any council member like to make a comment?

1:30

Okay.

1:31

Seeing none moving on to an announcement of supplemental communications pertaining to closed session and study session items.

1:37

Do we have any supplemental communications?

1:40

Yes, Mayor for study session item number one, a PowerPoint presentation was was received from Sunny Hahn, our chief financial officer entitled City of Huntington Beach proposed fiscal year 2024-25 budget review and one email communication received regarding the item.

1:59

Thank you.

2:00

Do we have anyone signed up to speak?

2:02

Yes, we have three people signed up to speak.

2:05

I'll call them all down at this time.

2:07

Pat Goodman, Robert Sternberg, and Ellen Riley.

2:12

Please come down to both podiums.

2:14

At this time, the city council will receive comments from members of the public on the closed session items.

2:19

Individuals wishing to provide a comment on items may do so in person by filing out a request to speak form to and handing it to the city clerk.

2:27

All speakers are encouraged but not required to identify themselves by name.

2:31

Each speaker may have up to three minutes unless a volume of speakers warrants reducing the time allowance.

2:36

Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda.

2:41

Members of the public who would like to speak directly with the council member on an item not on the agenda may consider scheduling an appointment by contacting the city council's administrative assistant at 714-536-5553 or emailing the entire city council at City.council at SurfCity-HB.org.

3:00

First speaker, go ahead.

3:17

I mean 25 budget.

3:24

How much time do we have?

3:25

Three minutes.

3:26

Oh thank you.

3:32

With the assumptions and notes for various funds under the control of the city.

3:36

As I recall, there will be comparative uh statements, actual versus budget statements for each department, uh, including the library.

3:48

Um here are some questions and requests that you disclose prior to the presentation of the first draft.

3:57

Um an explanation of what comprises the general fund losses and subsequent years in order to make corrections.

4:05

Is a two percent increase in TOT reflected in the 2024-25 budget?

4:11

Has the comment um mentioned by a member of the downtown bid group that visitors are down this year been reflected in the budget?

4:21

Uh line item comparative budgets uh for our elected officials and general manager identified as other expenditures at 3.8% of the total budget.

4:32

Explanation of how the city accounts for settled and pending settlements of lawsuits and claims.

4:38

Update on payment of the redevelopment loan repayment by the state and the award to the Kennedy Commission related to the fifth cycle housing element lawsuit.

4:48

Where are the payments to code for settlement reflected for each year and the balance due?

4:55

Unfunded accrued liability, pension costs and estimates.

5:00

Please provide a refresher of how this activity is estimated in the accounting from year to year.

5:08

Subsequent budgets to 2024, 25 show an increase of approximately 4 million per year in the UAL.

5:19

How are unfilled positions accounted for in the budget versus overtime and outsourcing to backfill open positions?

5:26

If a position is open for an extended period, is it time to eliminate it or outsource it?

5:33

I noticed 35 open full-time part-time positions, one promotional job on the uh website.

Discussion Breakdown — Share of Meeting

Public Comments███████████████████████████████31%

Homelessness██████████████14%

Procedural████████8%

Budget Policy████████8%

Capital Improvement Program████4%

Public Safety████4%

Public Health████4%

Library████4%

Pending Litigation███3%

Summary of Proceedings

Huntington Beach City Council/Public Financing Authority Meeting - May 21, 2024

This meeting included a study session on the proposed FY 2024/25 budget, a closed session for litigation and labor negotiations, and the regular meeting with public comments, consent calendar, and council member items. Key topics included the structurally balanced budget, opioid settlement spending plan, capital improvement projects, homelessness data, library book controversies, and a proposal to rename Commerce Lane (later amended to honorary signs). The meeting ran from 4:00 PM (study session) through 6:00 PM regular session.

Consent Calendar

Item 8: Approved and adopted minutes of May 7, 2024, as amended by supplemental communication.
Item 9: Received and filed the City Clerk's quarterly listing of professional services contracts.
Item 10: Approved design concept and placement of a re-dedication plaque celebrating the 50th Jubilee of Huntington Central Park, with a minor design adjustment (passed 7-0).
Item 11 (Part A): Adopted Zoning Text Amendment No. 23-002 (Ordinances 4307-4314) – passed 7-0.
Item 11 (Part B): Adopted Ordinance No. 4322 limiting future city councils from entering joint exercise of power agreements for workforce housing – passed 4-3 (Moser, Bolton, Kalmick dissenting).
Item 12: Approved escheatment of $7,006.01 in unclaimed funds.
Item 13: Approved professional services contract with Carl Warren & Company for liability claim investigation and processing, not to exceed $750,000 over three years.
Item 14: Accepted public improvements at Gisler Park, released securities, and accepted a guarantee and warranty bond.
Item 15: Approved the FY 2022/23 Infrastructure Fund Annual Report.
Item 16: Awarded construction contract to DBX, Inc. ($1,146,920) for traffic signal modifications at Warner/Ash and Main/Delaware, appropriated $564,932, and authorized change orders up to 10% (passed 7-0).

Public Comments & Testimony

Budget/Study Session Comments (4:00 PM): Speakers asked for details on general fund losses, TOT increases, lawsuit settlements, and unfunded pension liabilities. One speaker requested funding for reflective traffic safety devices. Another urged canceling the library privatization RFP, filling housing element requirements, and reducing overtime/training budgets.
Open Session Comments (6:00 PM): Fifty-three speakers addressed various topics:
- Library books: Many speakers expressed strong support or opposition to relocating books with sexual content from children's sections. Several speakers accused Councilmember Kalmick of defending the book "The Big Bath House" and threatened a lawsuit against Chad Williams. Others defended the library staff and called for a data-driven approach.
- Cease and Desist Letter: Multiple speakers supported Chad Williams, asserting his free speech rights and criticizing Councilmember Kalmick for using "lawfare." A few speakers defended Kalmick, saying the letter was a response to defamation.
- Street Renaming (Item 17): Several speakers supported honoring Ed Laird for his philanthropy. Some opposed the original street renaming due to costs to businesses and lack of public process.
- Homelessness & Budget: A speaker praised the city's homeless outreach and asked for prevention efforts. Others criticized lawsuits' cost and urged adoption of the housing element.
- Other: Speakers advocated for Sugar the Surf Dog's recognition, an Asian American dance festival, and moving council meetings to Monday.

Discussion Items

Study Session: Proposed FY 2024/25 Budget Review
- Chief Financial Officer Sonny Hahn presented a structurally balanced budget with a $132,000 surplus. General fund revenues: $293 million recurring + $6.9 million one-time (waterfront loan repayment). Expenditures: $299.6 million ($191M personnel, $57M operating, $51.4M non-operating). 25% of one-time revenues transferred to Section 115 trust, remainder to equipment replacement, workers' comp, and general liability funds.
- Four new FTEs recommended: building inspection supervisor, community engagement coordinator (opioid-funded), real-time crime center supervisor, and fleet maintenance crew leader. Also restructuring of non-general fund positions.
- Capital Improvement Program (CIP) presented by City Engineer Tom Herrell: $35 million in projects (drainage tide valves, facility upgrades, street/ADA improvements, water system rehab). Only $8 million of $30 million in infrastructure requests funded due to limited general fund transfers.
- Opioid Settlement Spending Plan (Fire Chief Jeff Lopez): $893,000 in FY 24-25 for a chief medical officer (part-time contract), a management aid (community engagement), equipment/supplies, and other abatement activities. Funding expected for ~18 years.
- Councilmember Bolton questioned a 95% increase in claims expenses in the HR budget, which City Attorney Gates explained as a conservative estimate of potential liability. Councilmember Moser asked about combining city engineer and deputy public works director roles (cost savings) and the timeline for fee schedule updates and additional revenue options (staff will present throughout FY).
City Manager's Report: Homeless System of Care & Point-in-Time Count
- Lieutenant Brian Smith and Homeless Services Manager Jessica Kelly presented the 2023 Annual Report and 2024 Point-in-Time Count results. Key stats: 644 shelter referrals (10% increase), 56 people into permanent housing, 5,222 contacts, B Well team responded to 4,281 dispatch calls. Navigation Center (174 beds) averaged 93% occupancy.
- Unsheltered homeless count decreased 8% from 2022 (173 from 188) and 40% from 2019 (289). 48% of surveyed individuals became homeless in the previous 12 months. 76% had last permanent address in Orange County. The city has one of the highest document-ready rates (77% vs. 72% county) and housing match rates (1 in 7 vs. 1 in 12 county).
- Councilmember Moser thanked staff and asked about early intervention programs and the SB2 funding ($800,000-$900,000 annually) that could be at risk without a certified housing element. Councilmember McKeon highlighted the team's focus on metrics and cost savings ($75,000-$100,000 less than previous years).
Councilmember Item 17: Renaming Commerce Lane to Ed Laird Lane
- Original agenda requested a resolution. Mayor Pro Tem Burns substituted a motion for ceremonial signs on light poles instead of renaming, after concerns from Ed Laird and businesses. Councilmember Kalmick moved to table for a policy process (failed 3-4). The substitute motion for honorary signs passed 4-3 (Burns, Van Der Mark, Strickland, McKeon in favor; Moser, Bolton, Kalmick abstained).

Key Outcomes

Budget direction: Staff will adjust the proposed FY 2024/25 budget based on council feedback and return for formal adoption on June 4, 2024. The budget will be posted on the city website by May 26.
Zoning Text Amendment: Part A (8 ordinances) adopted 7-0; Part B (ordinance restricting future JPAs) adopted 4-3.
Plaque design: Approved with minor design modification (7-0).
Traffic signal contract: Awarded ($1.15M) and appropriations approved (7-0).
Ceremonial signs for Ed Laird: Council directed staff to install commemorative signs on light poles near his businesses; no resolution required.
Homelessness report: Received; staff will continue to advocate with county for housing placement prioritization and expand early intervention efforts.
Opioid spending plan: Endorsed for implementation; positions funded only while settlement funds last (~18 years).
Next meeting: June 4, 2024, for budget adoption.

Councilmember Comments

Mayor Van Der Mark and Mayor Pro Tem Burns reported attending a Metropolitan Water District infrastructure tour.
No AB 1234 reports or negotiation disclosures were made.

Meeting Transcript

Mr. Alignment, go the other way. Very good. I'd like to call the meeting of the City Council public financing authority to order. City Clerk, may you call the role, please? Yes. Councilmember Mosier. Here. Councilmember Bolton. Here. Mayor Pro Tem Burns? Here. Mayor Vandermark? Here. Councilmember Strickland. Councilmember McKeon? Here. Councilmember Kalmick. Here. All present. Thank you. City Council member comments. Would anybody any council member like to make a comment? Okay. Seeing none moving on to an announcement of supplemental communications pertaining to closed session and study session items. Do we have any supplemental communications? Yes, Mayor for study session item number one, a PowerPoint presentation was was received from Sunny Hahn, our chief financial officer entitled City of Huntington Beach proposed fiscal year 2024-25 budget review and one email communication received regarding the item. Thank you. Do we have anyone signed up to speak? Yes, we have three people signed up to speak. I'll call them all down at this time. Pat Goodman, Robert Sternberg, and Ellen Riley. Please come down to both podiums. At this time, the city council will receive comments from members of the public on the closed session items. Individuals wishing to provide a comment on items may do so in person by filing out a request to speak form to and handing it to the city clerk. All speakers are encouraged but not required to identify themselves by name. Each speaker may have up to three minutes unless a volume of speakers warrants reducing the time allowance. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with the council member on an item not on the agenda may consider scheduling an appointment by contacting the city council's administrative assistant at 714-536-5553 or emailing the entire city council at City.council at SurfCity-HB.org. First speaker, go ahead. I mean 25 budget. How much time do we have? Three minutes. Oh thank you. With the assumptions and notes for various funds under the control of the city. As I recall, there will be comparative uh statements, actual versus budget statements for each department, uh, including the library. Um here are some questions and requests that you disclose prior to the presentation of the first draft. Um an explanation of what comprises the general fund losses and subsequent years in order to make corrections. Is a two percent increase in TOT reflected in the 2024-25 budget? Has the comment um mentioned by a member of the downtown bid group that visitors are down this year been reflected in the budget?

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