Huntington Beach City Council/Public Financing Authority Meeting - August 6, 2024

The Huntington Beach City Council/Public Financing Authority held a regular meeting on August 6, 2024, starting with a closed session at 4:30 PM and reconvening at 6:00 PM. The meeting covered a wide range of topics, including lawsuit updates, consent calendar approvals, a public hearing for a senior transportation grant, and three council member items. The most contentious items were the proposed "Parents' Right to Know" ordinance (item 30) and a request for an independent audit of the Pacific Airshow settlement (item 31). Over 55 public speakers addressed the council, with comments split between support and opposition for these items.

Consent Calendar

• Items 14–28 were approved 7-0, except items 18 and 19 which were pulled for separate votes.
• Item 18 (positions on state legislation): Support for Senate Concurrent Resolution 165 (designating part of the 405 Freeway as "Surf City Highway") passed unanimously. A resolution supporting Proposition 36 (Homelessness, Drug Addiction and Theft Reduction Act) passed 5-0-2, with Councilmembers Moser and Kalmick abstaining due to a decades-old norm against taking positions on statewide ballot measures.
• Item 19 (Carr Park reconfiguration conceptual plan) was amended to include a flagpole and a plaque honoring Medal of Honor recipient Chris Carr, then passed 7-0.

Public Comments & Testimony

• Pacific Airshow Settlement: Multiple speakers urged the council to support item 31, calling for an independent audit of the settlement. Shammy, a former CEO, described the Visit HB economic impact report as "phony," citing miscalculations and misleading statements (e.g., property tax projections, a vague $120 million figure). Kathy Writer detailed what she claimed were giveaway terms, including $5 million cash, free parking and RV spaces, and city responsibility for CEQA and permits. Speakers like David Reinerson and Tim Geddes characterized the settlement as "corruption" and a "giveaway to a political ally."
• Parents' Right to Know (Item 30): Many speakers supported the mayor's proposal to declare Huntington Beach a "Parents' Right to Know" city in response to AB 1955. Supporters (e.g., Susie Fourier, Keith Jorgensen, David Clifford) argued that parents have a fundamental right to be informed about their child's gender identity or expression. Opponents (e.g., Stephanie Camacho Van Dyke from the LGBTQ Center OC, Bethany Webb, and others) argued that AB 1955 does not mandate secrecy but prevents school boards from requiring disclosure, and that forced outing could harm LGBTQ+ youth.
• Other Comments: Aaron Hazelett Oaks raised safety concerns after a July 4th stabbing in downtown Huntington Beach, urging increased police presence. Several speakers criticized the council majority for focusing on social issues rather than core city services like potholes, beach restrooms, and financial transparency.

Discussion Items

• City Attorney's Report: Michael Gates provided updates on three lawsuits. (1) The city's appeal in its federal housing lawsuit against the state is scheduled for oral arguments at the Ninth Circuit in late October/early November. (2) In the state's housing lawsuit against the city, a court struck most punitive measures (fines, loss of land-use authority) and gave the city one year to adopt a housing element after a writ is issued. (3) The U.S. Supreme Court's decision in City of Grants Pass v. Johnson overturning Martin v. Boise was cited as a win for Huntington Beach, which had submitted amicus support. Gates also presented the annual report on the Community Prosecutor Program, noting over 1,100 cases filed, 290 convictions (a 200% increase over the prior year), and expansion to two prosecutors.
• Item 30 – Parents' Right to Know Ordinance: Mayor Gracey Van Der Mark introduced the item, directing the city manager and city attorney to prepare an ordinance declaring Huntington Beach a "Parents' Right to Know" city, stipulating that no educator should withhold information about a child's gender identity or expression from parents, and authorizing the city to challenge AB 1955 or join a parent's challenge. Councilmember Kalmick argued that AB 1955 only prevents school districts from mandating disclosure, not from teachers using discretion, and that the city has no jurisdiction over education policy. Councilmember Moser raised questions about legal enforceability, prioritization, and alignment with the city's strategic plan. After debate, the item passed 4-3 (Van Der Mark, Burns, Strickland, McKeon in favor; Moser, Bolton, Kalmick against).
• Item 31 – Audit of Pacific Airshow Settlement: Councilmember Kalmick proposed hiring an independent third-party expert to review the settlement agreement costs, city financials, and the airshow's net direct economic benefit. Councilmember Strickland offered a substitute motion to instead hire a different economic impact firm (not Visit HB) to produce a full economic impact report. After discussion, the substitute motion passed 4-3 (Van Der Mark, Burns, Strickland, McKeon in favor; Moser, Bolton, Kalmick against). Councilmembers also voted to waive attorney-client privilege on closed-session communications related to the settlement, allowing the city attorney to provide more details. Gates stated that all terms were fully disclosed in closed session and that no long-term contract exists—only a settlement with a term sheet contingent on future CEQA review.
• Item 32 – Taxpayer Transparency: Councilmember McKeon requested a staff report on various tax-sharing and financial concessions made by the city to private entities (e.g., Amazon, car dealerships, COVID rent abatements, the Pier and Elton property purchases). The motion passed 7-0, with the report due at the September 17, 2024 meeting (subject to extension if staff cannot meet the deadline).

Key Outcomes

• Consent Calendar: Items 14–28 adopted as amended (7-0). Item 18 (Prop 36 support) passed 5-0-2 (Mosier and Kalmick abstained).
• Item 29 (OCTA Grant): Resolution 2024-37 adopted 7-0, authorizing application for $56,168 (with $51,000 from OCTA and $5,168 match from the Council on Aging) for senior transportation software.
• Item 30 (Parents' Right to Know): Passed 4-3. City attorney to draft ordinance for introduction on September 3, 2024.
• Item 31 (Airshow Audit): Substitute motion passed 4-3 to hire an economic impact firm (not Visit HB) to evaluate the airshow's economic benefits. Council also waived attorney-client privilege on closed-session settlement discussions.
• Item 32 (Tax Transparency): Passed 7-0. City manager to report back by September 17, 2024, with financial data on tax-sharing agreements.