Huntington Beach City Council/Public Financing Authority/Housing Authority Meeting - June 4, 2024

The Huntington Beach City Council held a regular meeting on June 4, 2024, addressing a wide range of issues including the adoption of the FY 2024/25 budget, modification of the Tourism Business Improvement District (TBID), approval of a conceptual plan for Marina Park, and several controversial resolutions. The meeting featured extensive public comment and divided votes on several items.

Consent Calendar

• Approved minutes of May 21, 2024 (Item 3).
• Received and filed Monthly Update of Citizen Boards and Commissions (Item 4).
• Approved appointments to City Celebration Committee after a 4-3 vote (Item 5): Councilmembers Kalmick, Moser, and Bolton dissenting.
• Adopted revised City Council Manual with amendment to fly flags at half-staff for former elected officials (Item 6): Substitute motion passed 7-0; original motion failed 3-4.
• Opposed Senate Bill 1174 (voter identification) on a 4-3 vote (Item 7).
• Approved service agreement with Procure America (Item 8).
• Approved MOU with American Legion Post 133 (Item 9).
• Approved license agreements with Southern California Edison for three parks (Items 11, 12, 13).
• Approved 18-month extension of Exclusive Negotiations Agreement with Jamboree Housing for Pathways Project (Item 14): Passed 7-0.
• Accepted bid for Arterial Rehabilitation Project (Item 15).
• Approved amendment to cooperative agreement with Orange County Flood Control District (Item 16).
• Adopted Resolution for Pavement Management Plan and 7-year CIP (Item 17).

Public Comments & Testimony

• Library privatization: Numerous speakers opposed outsourcing library operations, citing concerns about reduced services, lack of transparency in the RFP process, and inadequate insurance requirements. Several noted the RFP had a short turnaround and was sent to only one vendor.
• Tourism BID modification: Supporters including business owners and Visit Huntington Beach representatives argued the increase from 4% to 6% assessment was necessary to remain competitive with neighboring cities, especially with the 2028 Olympics approaching. One speaker opposed, citing concerns about gun violence deterring tourists.
• Budget and city attorney’s office: Multiple speakers criticized the proposed 13% increase in the city attorney’s budget on top of a 31% increase last year, questioning the cost of litigation and settlements. Others defended the office, noting a 38 million dollar judgment won by the city.
• First/Second Amendment resolution: Speakers were sharply divided. Some praised the affirmation of constitutional rights, while others called it unnecessary political grandstanding, especially during Gun Violence Awareness Month and Pride Month. Several highlighted the inconsistency of focusing on only two amendments.
• Marina Park racquetball courts: Racquetball enthusiasts and a junior national champion urged keeping eight courts (Option 2), while staff recommended Option 1 with six courts and two pickleball courts.
• Other topics: Speakers addressed the need for affordable housing, expressed support for the Pathways Project, and requested more financial transparency.

Discussion Items

• City Celebration Committee Appointments (Item 5): Councilmember Kalmick opposed creating the committee, citing more pressing priorities and staff resource concerns. The item passed 4-3.
• City Council Manual (Item 6): Councilmember Kalmick proposed amendments to set a framework for public comment times (to start business by 9 p.m.) and to fly flags at half-staff for all former elected officials. The motion failed 3-4, but a substitute motion to add former elected officials passed 7-0.
• Legislative Position on SB 1174 (Item 7): Council debated whether voter ID is a municipal affair. The majority argued it is protected by the state constitution and voters approved it; the minority argued it is a statewide concern. The motion to oppose SB 1174 passed 4-3.
• Marina Park Reconfiguration (Item 10): Staff presented two options: Option 1 (six racquetball courts, two pickleball courts) and Option 2 (eight racquetball courts, one pickleball court). The majority supported Option 1, citing community surveys and CPED principles. Unanimous approval 7-0.
• Jamboree Housing Extension (Item 14): Staff and police presented the Pathways Project design, emphasizing crime prevention through environmental design and flexibility for future conversion. Councilmember Burns questioned reliance on taxpayer-funded grants. Approved 7-0.
• Tourism BID Modification (Public Hearing Item 18): Staff reported only one protest (<1% of assessments). The increase to 6% was supported by speakers and council. Approved 7-0.
• FY 2024/25 Budget Adoption (Public Hearing Item 19): Extensive discussion. Staff presented a balanced general fund with a 1.7 million dollar surplus, but out-year deficits projected. Councilmember McKeon proposed an amendment to exempt senior fees from annual CPI adjustments (capped at 5%). The amendment passed 7-0 (with Councilmember Bolton voting no on item H). Councilmembers Bolton and Moser expressed concerns about long-term structural deficits and urged consideration of cannabis and short-term rental revenues. Councilmember Strickland praised savings from last year’s cuts. The budget was adopted overall 7-0.
• Councilmember Item 20 (”Water is wet, sky is blue”): Councilmember Kalmick withdrew the item, calling it performative.
• Councilmember Item 21 (Affirmation of 1st and 2nd Amendment): Councilmember Burns presented the resolution. Debate highlighted national and local concerns about lawfare, border security, and gun rights. Three councilmembers (Moser, Bolton, Kalmick) walked out before the vote. The resolution passed 4-3 with those three recorded as absent.

Key Outcomes

• City Celebration Committee appointments approved (4-3).
• City Council Manual adopted with flag-at-half-staff amendment for former elected officials (7-0).
• Opposition to SB 1174 approved (4-3).
• Marina Park concept plan (Option 1) approved unanimously (7-0).
• Jamboree Housing ENA extension approved (7-0).
• Tourism BID assessment increase to 6% approved (7-0).
• FY 2024/25 budget adopted with senior fee carve-out from CPI adjustments (6-1 on the carve-out; overall budget 7-0).
• First/Second Amendment affirmation resolution approved (4-3) after three councilmembers left the meeting.

The meeting adjourned at approximately 9:30 p.m. The next regular meeting is scheduled for June 18, 2024.