Huntington Beach City Council Meeting - March 18, 2025

On March 18, 2025, the Huntington Beach City Council held a regular meeting at 6:00 PM (preceded by a Study Session at 4:00 PM and Closed Session). The meeting featured a joint study session on CDBG/HOME funding, a contentious public comment period, the appointment of Andrew Gruel to fill a vacant council seat (following the resignation of Tony Strickland), a mid-year budget overview, and several consent and administrative items. Mayor Pro Tem Casey McKeon was absent with permission.

Study Session: CDBG and HOME Funding (Item 25-0811)

• The Citizen Participation Advisory Board (CPAB) presented recommended funding allocations for the 2025-26 Community Development Block Grant (CDBG) and HOME Investment Partnerships programs. The estimated total federal allocation is approximately $1.2 million in CDBG and $538,000 in HOME funds, plus carryover and program income.
• CPAB recommended funding six public service organizations (totaling ~$168,000): Children's Bureau, Boys & Girls Club of Huntington Valley, and others; Open Arms Food Pantry was not recommended because the organization did not attend its presentation. The board unanimously supported these recommendations.
• Staff noted that Huntington Beach’s CDBG allocation has been declining slightly in recent years and that the HUD formula is not publicly disclosed. City Council members expressed concerns about the application burden and asked about outreach to potential applicants.

Closed Session Report

• The City Attorney reported that the Council unanimously authorized filing amicus support in Byrne v. Rule (Court of Appeal Case No. B332962). No other actions were taken in closed session.

Public Comments

• Over 25 speakers addressed the Council on a variety of topics. Key themes included strong opposition to the process for filling the vacant council seat (many demanded a special election or appointment of the next highest vote-getter, Natalie Moser), criticism of the Council’s library policies (book banning, plaque, privatization), concerns about the city’s budget deficit and the cost of a special election, and accusations of divisiveness and lack of transparency. Several speakers supported the Council’s conservative direction. One speaker requested removal from consideration for the vacant seat (Ken Babino). A brief disruption occurred when an audience member gave a Nazi salute, which the Mayor addressed by calling for decorum.

Administrative Items: Appointment to Vacated Council Seat (Item 25-20410)

• Councilmember Don Kennedy stated that of the three suggested candidates (Andrew Gruel, Ken Babino, Valentina Bankhead), two had withdrawn. Mayor Pat Burns then nominated Andrew Gruel; Councilwoman Gracey Van Der Mark seconded. The motion passed 5-0 (with McKeon absent).
• Andrew Gruel, a local restaurateur and small business owner, was administered the oath of office by Councilwoman Van Der Mark. He briefly addressed the Council, emphasizing his focus on basic city services, economic sustainability, and transparent governance. Councilmembers welcomed him, praising his leadership and community service during recent wildfires.

Consent Calendar (Items 13-18)

• The Council unanimously approved the consent calendar, which included: approval of minutes from March 4 and March 11, 2025; a five-year license agreement with Southern California Edison for Arevalos Park (Item 14); a five-year license agreement for a community garden at Atlanta/Brookhurst (Item 15); forwarding the 2024 Housing Element Annual Progress Report to the state (Item 16); approval of the West Orange County Water Board FY 2025/26 budget (Item 17); and a construction contract for a fiber optic traffic signal communication system on Bolsa Chica Street (Item 18).

Public Hearing (Item 19): Zoning Text Amendment for Smoke/Tobacco Shops

• The public hearing was opened and immediately continued to the next regular meeting on April 1, 2025, by a 6-0-1 vote (McKeon absent).

Administrative Items (Continued) - Appointment of Interim CFO (Item 20)

• The Council adopted Resolution No. 2025-26 appointing Robert Torrez as Interim Chief Financial Officer and approved his employment agreement as a retired annuitant. The term is up to one year, limited to 960 hours per fiscal year, at $108.03 per hour. Councilman Kennedy expressed interest in having Mr. Torrez present at a future meeting to discuss his experience (e.g., $100 million CalPERS savings, $120 million aquarium/waterfront projects). The motion passed 6-0-1.

City Manager's Report

• The City Manager’s Office overview highlighted a $3.58 million budget for FY 2024-25, with two vacancies. Performance data included: Navigation Center 90%+ occupancy; 78 homeless individuals housed; 5,711 outreach contacts in 2024; HBTV YouTube viewership of 6.2 million impressions in H2 2024; and over 350 community members honored at Mayor’s Awards ceremonies.

Mid-Year Budget Update (Item 12)

• Finance staff presented a high-level update: General Fund revenues for FY 2024-25 are projected at $293.5 million recurring plus $10.9 million one-time (including $4 million from the 2021 oil spill settlement). Expenditures total $304 million. The city projects a $2.3 million surplus, relying on one-time oil spill funds to balance. Property tax growth is strong (4.5% increase in assessed valuation), but sales tax revenues are sluggish. The five-year forecast shows growing deficits. No formal action was taken; the presentation was informational.

Key Outcomes

• Appointed Andrew Gruel to fill the vacated City Council seat (5-0 vote).
• Continued Public Hearing on smoking/tobacco shop regulations to April 1, 2025 (6-0-1).
• Approved appointment of Robert Torrez as Interim Chief Financial Officer (6-0-1).
• Unanimously approved Consent Calendar (Items 13-18).
• Council authorized amicus support in Byrne v. Rule during Closed Session.
• No action taken on mid-year budget; further updates anticipated after receipt of fourth-quarter sales tax data.