Huntington Beach City Council Meeting - July 16, 2024
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Huntington Beach City Council/Public Financing Authority Meeting - July 16, 2024
The Huntington Beach City Council and Public Financing Authority met on July 16, 2024, in a combined Study Session (5:00 PM) and Regular Meeting (6:00 PM). The Study Session focused on an update to the Short-Term Rental (STR) program, including enforcement, revenue potential, and possible expansion. The Regular Meeting included a presentation by the New Zealand Lifesaving Team, extensive public comments (29 speakers total), approval of the consent calendar, receipt of the biannual strategic plan update, and introduction of an ordinance amending a pipeline franchise agreement. Councilmember Strickland and City Attorney Gates were absent with permission. Notable public comments centered on the recently disclosed Pacific Air Show settlement, with many speakers criticizing the terms as a giveaway of taxpayer funds.
Consent Calendar
- Items 4-9 approved unanimously (6-0, Strickland absent):
- Approval of minutes from July 2 and July 8, 2024.
- Memorandum of Understanding with Huntington Beach Police and Community Foundation.
- Agreements with Costa Mesa, Irvine, and Newport Beach for public safety helicopter services.
- Contract with All City Management Services, Inc. for crossing guard services (amended per supplemental communication from Lt. Toby Archer).
Public Comments & Testimony
Study Session Public Comments (7 speakers on STRs):
- Catherine LeVachure (HB resident since 1999, STR host) gave the city a "D-" for the current program, citing an arduous permit process and lack of automation. She opposed concentrating unhosted STRs in downtown, advocating dispersion citywide.
- Jean Young (Long Beach host representative) encouraged a percentage-based cap tied to housing stock (e.g., 0.5-1%), opposed an arbitrary cap of 200, and recommended voluntary tax collection agreements with platforms.
- Katie Yng (17-year resident, hosted STR permit holder) supported expansion and asked that ADUs be allowed as STRs (noted later by staff as prohibited under state law since 2020). She favored raising the cap and letting homeowners decide.
- Greg Kelly (hosted STR near Beach/Adams) argued STRs serve middle-class tourists who cannot afford beach hotels and suggested platform-based tax collection to reduce administrative burden.
- Phil Larshan (renewing STR permit) said STR income allowed him to retire without depleting retirement funds; he advocated for streamlined permitting and option for unhosted rentals.
- Terry Hudgens (resident) pointed out that unhosted properties had fewer complaints per the data, and recommended using a denominator (e.g., complaints per room night) to better measure incidents.
- Roger Bloom (resident since 1975, hosted STR operator) opposed expanding unhosted STRs, describing a nightmare experience with an illegal unhosted rental on his block and arguing the city should not sacrifice residents' quality of life for revenue.
Regular Meeting Public Comments (22 speakers):
- Several speakers (former Mayor Connie Boardman, TJ England, Paula Schaeffer, Wendy Rincon, others) strongly criticized the Pacific Air Show settlement, calling it a "giveaway" of taxpayer money, including $4.9 million payout, 10-year exclusive contract renewable to 40 years, waiver of fees, and provision of 3,500 parking spots. Many questioned City Attorney Gates' absence at the RNC and demanded transparency.
- A speaker (Kristen Altbaum) requested formation of a volunteer committee to address illegal fireworks/M80s.
- Other speakers addressed national politics, the attempted assassination of Donald Trump, local budget deficits, and support for the air show.
- Speakers noting support for the police foundation (Amory Hanson) and for council actions (Jeannie Gooden) were also heard.
Discussion Items
Study Session: Short-Term Rental Program Update
- Deputy Director Jill Boss presented: Over 200 STR permits issued citywide; $1 million in TOT collected in 2023; unpermitted STRs declined from 860 (2020) to 135 (2023). Over half of permitted STRs are in coastal zone/downtown. Complaints (156 over 3 years) concentrated there. Potential revenue from expanding to 200 unhosted STRs estimated between $1.1M and $1.6M annually based on average TOT per unit. Staff recommended considering caps, use-it-or-lose-it policies, third-party vendor for monitoring/auditing, and possible noise monitoring devices.
- Council discussion: Kalmick favored a conservative, incremental approach with a cap, buffers to prevent clustering, and third-party tax collection. Bolton asked about automated tax collection (staff noted pros/cons). Moser emphasized enforcement, auditing, and better metrics. McKeon focused on rapid response for quality-of-life issues; code enforcement and police explained current procedures for noise and parking complaints. McKeon suggested a 12-month pilot program. Kalmick noted state law prohibits STRs in ADUs built after 2020.
Regular Meeting: FY 2023-2027 Strategic Plan – Biannual Progress Update #2
- Staff reported 41% of plan completed (up 9% from January), 43% in progress, 14% upcoming, 2% on hold. Key accomplishments included updated economic development strategy, $9 million in grants, launch of Streamline Surf City, completion of water master plan, HBFD heart attack care recognition. A public dashboard is in development. Councilmember Moser requested more specific KPIs measuring impact rather than just inputs (e.g., success rates in homelessness programs). Councilmember Bolton asked about grant funding lost due to non-compliant housing element; staff had no figure. The report was received and filed (6-0).
Ordinance Introduction: Cardinal Pipeline Franchise Amendment
- Staff presented Ordinance No. 4230 to amend the franchise agreement with Cardinal Pipeline, L.P. for oil pipeline operations. The amendment will generate approximately $117,000 annually for 10 years (with CPI increases). HB already has one of the highest franchise fees among comparable cities. The ordinance was introduced unanimously (6-0).
Key Outcomes
- Consent Calendar approved 6-0 (items 4-9).
- Strategic Plan Biannual Update received and filed 6-0.
- Ordinance No. 4230 introduced and set for second reading.
- No formal action taken on the STR program; council directed staff to return with a draft ordinance incorporating discussion points, including a cap, locational restrictions, and a pilot program.
- The next regular meeting is scheduled for August 6, 2024.
Meeting Transcript
The meeting of the City Council Public Financing Authority to order. City Clerk may have the roll call, please. Councilmember Mosier. Here. Councilmember Bolton. Here. Mayor Pro Tim Burns. Here. Mayor Vandermark? Here. Councilmember McKeon. Here. Councilmember Strickland is absent. Councilmember Kalmick. I'd like to announce that pursuant to resolution 2001-54. Councilmember Strickland's requested permission to be absent with no objections. The minute will minutes will reflect permission was granted. Also, pursuant to uh Charter Section 309, our city attorney Michael Gates has requested permission to be absent tonight, and sitting in the meeting in his place is senior deputy city attorney Connor Highland. Thank you. City Councilmember comments. Would anyone like to make a comment? Councilmember Kalmick. Thank you, Mayor. Um I honestly wish I wasn't here tonight. Um I have contracted COVID uh like a week and a half ago, which was the reason I wasn't at the meeting on Monday. Um we had actually had a vacation scheduled, but um fortunately, I guess that got got canceled uh on Wednesday um at about six o'clock in the morning. Uh I was woken up by my son uh thrashing against this crib as he was having a february seizure. We had to call 911 and um our friends at the fire department uh arrived, and I'd like to thank uh the crew of um Huntington Engine 42, Captain Kevin Shanahan, acting engineer Jeffrey Nair, firefighter paramedic Scott Styles, firefighter paramedic Seth Adams, ambulance operator Aaron Lewis, and ambulance operator David McCarter for coming and helping my son and my wife to a certain extent on getting them to uh chalk in a very efficient manner and making sure that uh my son was okay and he came home that that afternoon. And uh, I'd like to thank uh Captain Eric Blaska for going to pick my wife and son up at the hospital because I was at home in quarantine with COVID, um, and we were unable to go get him or get them. So I'd like to thank again from the bottom of my heart our uh our friends and family here at the fire department and uh all of our EMS staff for that. So thank you so much. Thank you. Councilmember Bolton. Thank you. So the people do not yield their sovereignty to the bodies that serve them. That's a quote that I think many folks in this room could agree with. Uh the people insist on remaining informed to retain control of the legislative bodies that they have created. These two sentences are in the introduction of the Brown Act, the state's government transparency law. Government transparency flows from the same values, the people's sovereignty and local control, uh, that are often cited uh to justify the importance of charter cities and home rule. Imagine that. I hope the city government will be consistent in its regard for the values of the people's sovereignty and local control. Thank you. Go ahead. Thank you. I want to begin by acknowledging the terrible events that took place over the past weekend, and to reinstate that political violence has no place in our society, and it is never the answer to our differences. Our calls for unity must be sincere and rooted in a shared commitment to truth and understanding. It is only through honest dialogue and a collective effort to address the root causes of violence and division that we can hope to build a more united and compassionate society. This means implementing concrete actions and policies that foster genuine community engagement and bridge building. One such effort was our now defunct community cafe, which sought to bring neighbors from all parts of our community together in conversation to build understanding and connections. Representing a missed opportunity to promote and work toward the very unity we so desperately need.
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