Thirty five seconds.

Getting down to business here.

All right.

I'd like to call the meeting of the City Council Public Financing Authority to order.

City Clerk.

May I have the roll call, please?

Councilman Twine?

Here.

Councilman Kennedy?

Here.

Mayor Pro Tem McKeon?

Here.

Mayor Burns.

Here.

Councilwoman Vandermark?

Here.

Councilman Gruel?

Here.

Councilman Williams?

Here.

All present.

All right.

Do we have any supplemental communications for this session?

Yes, Mayor.

We have two supplemental communications for the closed session for item number two five-seven nine eight one email for item number two five-eight two four one email.

All right.

Do we have anybody signed up to speak?

There are no speakers signed up for this portion of the meeting.

Okay.

I'll make the motion to go back in close session.

Do I have a second?

Second.

We have a second.

We're going to recess into closed session.

Councilman Twine.

Here.

Councilman Kennedy?

Here.

Mayor Pro Tem McKeon?

Here.

Mayor Burns.

Here.

Councilwoman Vandermark?

Here.

Councilman Gruel?

Here.

Councilman Williams.

Here.

All present.

All right.

Tonight's invocation will be given by Huntington Fire and Police Chaplain Roger Wing.

Please stand.

Would you please join me in prayer as we ask the Lord's blessing on this evening's meeting?

In James Five, you tell us that if any of you lack wisdom, you should ask God, who gives generously to all without finding fault.

Now that's great counsel for all of us.

And we especially ask you, Lord, to give wisdom and direct the paths of our city council this evening as they deal with the issues on the agenda.

May you impart your wisdom and discernment to each member as they discuss the issues and make decisions.

We pray that you would give them guidance to be able to make the best decisions possible for our city.

Lord, we pray for all those who will be providing their input and sharing their views at the podium this evening.

Help them and guide them to share with clarity, dignity, and respect.

We thank you for bringing them here this evening to assure that our council has the benefit of the community's views and thoughts.

We ask your blessing, Lord, on each of our council members, our city manager, attorney, treasurer, clerk, police and fire chief, department heads, and all of our faithful and committed city employees who work so diligently in support of our city and our city council.

We pray for health and safety for them personally and for their families.

We also pray for all of our Huntington Beach first responders.

May you keep them safe and give them your wisdom on every call.

And as we enter the holiday season, we ask that you would provide us with your peace and joy to do it that we might enjoy the season as you intended and desired us to do.

Let us never forget what and who we're celebrating during these upcoming holidays.

Bless our meeting this evening, and may your peace and wisdom guide all that occurs tonight.

And we ask this in your name, Lord.

Amen.

Tonight's Pledge Allegiance is going to be led by U.S.

Navy Commander Joseph T.

Gilligan.

Thank you, sir.

And of our heart.

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

One nation under God, indivisible with liberty and justice for all.

City Attorney, do you have anything to report from closed session?

I do tonight, Mayor.

Thank you.

So three matters.

The City Council unanimously voted to appeal the Aloncia versus City of Huntington Beach.

Case number 30-2025-01462835 C U W M C J C.

Also unanimously, council provided direction to initiate litigation in two potential cases.

Particulars will be disclosed upon request once and if action is commenced.

That's all I have, Mayor.

Thanks.

All right.

Real quick, city attorney on the first one.

Can you mention that's pro bono?

Yeah, we we do have outside council working on the ONZIA case, and they are doing it pro bono, meaning no cost to the city.

All right, thank you.

Count any council members like to make a comment?

But usually has a lot to say.

Anyone?

All right.

I'm just saying uh recognizing breast cancer awareness month.

Respect that.

Uh we had a good uh fire golf ball tournament yesterday.

It was very successful and uh everything's good in the city, I think.

Oh, yeah, Butch, you got anything to announce on that one?

Yes, I just want to say that I beat Pat Burns' team.

Yeah, all right.

How?

Yeah, with the clubs.

Um, anything else?

All right.

City clerk, do we have any supplemental communications?

Yes, Mayor.

We have two supplic two supplemental communications for the consent calendar, item number nine, uh two five-eight zero three one email.

And item number twelve, two five-eight three zero four emails.

Okay, city clerk.

Do we have anyone signed up to speak?

We have 13 speakers signed up this evening.

All right, I'll read the disclosure.

Proper decorum at a city council meetings is imperative in order for the public to remain informed about issues pertaining to the city's business.

Public comments portion of the meeting is an opportunity for the public to be heard and address those issues in a public form.

Disruptive behavior, impeding or delaying, or our ability to conduct the council's business will not be tolerated.

Penal Codes, California Penal Code, Section 403 prohibits disrupting this meeting, and enforcement action will be taken for violations of this law.

At this time, City Council will receive comments from members of the public regarding any topic, including items on the closed open session agenda.

Individuals wishing to provide comment on items may do so in person by filling out a request to speak form delivered to the city clerk.

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

Please note that the uh 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 a 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 dot org.

Okay.

Uh city clerk call 13 speakers, please.

And we will be given two minutes.

Yeah.

Don't make me a credit, please.

When your name is called, please come down to the podium.

Please use both podiums.

Love, Mr.

Amory Hansen, Pat Goodman, Charlie Jackson, Rosalind Price, Ken Inouway, Tim Geddes, Donald Eugene, Rick Brown, Russ Neal, Paula Schaefer, Jennifer Thomas, Libby, and Justine Menkoff.

Start?

Oh, okay.

Greetings, Mayor Pat Burns and all council and city staff.

Love what you do.

Do what you love.

My name is Love.

And I'm involved in a lot of charities here in Huntington Beach.

The one that I'm promoting right now is the Miss Huntington Beach scholarship pageant.

And that is being held this Saturday, October 25th, 2 p.m.

at the uh Huntington Beach Central Library Theater.

Everyone is invited, everybody, and I know Mayor Burns will be there.

We're so excited to have him.

We have seven candidates for the crown, and our esteemed local icon Matt Liffreen will be our master of ceremonies.

We will also have a silent auction, live music at the reception that follows the event, and it's going to be a really nice occasion.

If you can go to Miss Huntington Beach.org, you can get your $35 tickets.

And even if you can't attend, your donation goes towards the scholarship fund.

By the way, I don't know how many of you know, but there's a rose garden outside the doors here, right behind the 9-11 memorial.

That is something that the sand dollars, the Huntington Beach Sand dollars, of which I'm president.

We take care of that, and we have been planting roses for the last 60 years in honor of our last 60 queens.

Although the pageant started about gosh 121 years ago, 4th of July, in honor of Henry Huntington.

Um we have been taking care of these roses, and we have um Andrea Roberson has been kind of tasked with maintaining them, and she's been here a lot.

I've probably seen her dancing around the roses.

Um, so anyway, um, these all these dollars go to help fund the young women that um are furthering their education.

It is a scholarship program, it's not a uh beauty pageant.

So I hope you'll come and uh we'll see you there.

Thank you, Mr.

Mayor.

My name is Mr.

Amory Hans.

I'm speaking tonight in support of item 11.

The mayor and councilman twining's ordinance to limit the sale of nitrous oxide.

This ordinance will ensure that those who intend to use nitrous oxide for nefarious purposes, are unable to do so.

While ensuring accountability for legitimate purposes.

Purchases.

Let's ensure fair and accountable purchasing and nitrous oxide.

Once again, I urge a yes vote on IM 11.

Thank you.

Hi, my name is Rosalind Price.

Good evening, Mayor Pat Burns, Mayor Pro Tem Casey McKeenan, Councilmembers Gracie, um Andrew, Don Butch, and Chad.

First, I'd like to thank the council for recognizing the 250th birthday of the United States Navy this evening.

The presentation is going to be just amazing.

I can already imagine.

As someone who not only supports our military but shows it through action, I proudly serve as part of the Soldier Family Soldier Family Readiness Group and the United Army National Guards for the FRG as the 240th Signal Company and the 250th EMIB.

They both proudly protect our coastal line.

It's an honor to stand alongside our soldiers and their families providing encouragement and assistance as they serve.

The same spirit of service extends into my community work here in Huntington Beach through my nonprofit Bug Angels, where we focus on helping the homeless and hopeless seniors and veterans alike, bringing guidance and comfort, resources to those who need it, and supporting our soldiers and strengthening our community truly go hand in hand.

I also want to express my full support for the approval of the introduction of the ordinance number 4342, prohibiting the sale of distribute and distribution of nitrous oxide.

This ordinance is a vital step toward protecting our youth, reducing the devastating impact of the substance misuse that affects far too many families in our city.

I'm grateful that the council is choosing to take action and lead with both compassion and common sense to safeguard the health and well-being of our families and our residents.

Through collaboration between our city leadership, law enforcement, community organizations, we can continue to keep Huntington Beach safe, strong, and united.

Together, we can ensure that Surf City USA remains not only a beautiful coastal city, but also a place where families, veterans, and future generations can live and thrive in hope.

Thank you, Mayor, Councilman, for your time and leadership, and all the residents here that are going to speak.

I appreciate your dedication for preserving the heart of our community for the city of Huntington Beach.

Good evening, everybody.

I'm Justine Makoff with Free Rain Foundation at the Huntington Central Park Equestrian Center.

And I am excited to let you know that we are in a documentary called Rescued Hearts.

It's a small piece, but a very important piece.

And it's going to be showing at the Leto Theater.

Pat, I know I'm gonna get this right this time.

It's November 4th.

Um November 4th at 6 p.m.

at Leto Theater.

If you would like to attend, I would love to have you, of course.

And anybody else who'd like to get tickets, of course, we'd love to see you there as well to support a local nonprofit, Free Rain Foundation.

You can go to our website at free reignfoundation.org and look under events for information tickets.

You also find a lot of other things that we have going on, especially our hug and groom that we have the first Sunday of every month.

So come support us, come see us on the big screen, and thank you for your time.

I'll leave flyers out at the front.

So if anybody wants to scan the QR code or take a flyer.

Thank you.

Thank you.

Next speaker, please.

I am Antifa, meaning anti-fascist.

I am woke, meaning to be informed, educated, and aware of social injustice.

These are both American values that we all should have.

To be American is to be Antifa.

Freedom means fighting fascism.

The founding fathers of this country were Antifa since they were fighting against a tyrant of a king.

Trump is trying to make his followers wage a war against these American beliefs to cause an American divide so that we hate each other.

So that makes Trump and his followers U.S.

domestic terrorists ignoring the US constitution, which this country was founded on.

It is time for Trump's followers to wake up, reject this MAGA cult that is brainwashing people so that Trump can be a dictator and control the hate that is destroying, Tim Gedis in the American way of life.

I'd like to start off by again, you know, protesting the fact that Mayor Burns is just shredding our norms and public comments.

We should, uh by having less than 20 people, we should easily have three minutes each.

It says so right on the agenda.

But arbitrary and capricious is the way he rolls.

So I'm thank you.

I'm disgusted that uh he's giving us two minutes, whoa.

Um, I also would like to express my uh support.

Uh yes on 50.

Uh that is going to pass, whether you like it or not, and we'll see what happens about that.

Now, this past Saturday, I attended the No Kings rally here.

One good size crowd was part of a nationwide protest that drew over seven million participants of all local of all political persuasions.

It showed public resistance to the mega brand of authoritarianism is strong and getting stronger.

In our city, the community resistance to our mega city council is also growing stronger.

Perhaps we need a no jacks protest to express our displeasure.

Already community-oriented council candidates like Taryn Palumbo and Ben Davis are emerging to provide true representation for our citizenry.

You can run, but you can't hide magas.

However, if you work, if you work at turning things around, Arbit Mark Free, right, Gracie?

Thank you.

Hi.

Uh Chad said suppression through fear has no place in America.

I agree.

Assassinations have no place in America.

But today, fear is being used to suppress people's right to life, liberty, and the pursuit of happiness.

The right to free speech, the right to a speedy trial, the right to due process, the right to habeas corpus are all being denied.

Suppression for fear through fear has no place in America.

ICE is an abbreviation for immigration and customs enforcement.

There was once a state secret police, which is abbreviated as Gestapo.

In 20 years for future generations around the world, people will remember ICE agents in just the same way.

Suppression through fear has no place in America.

I smelled the smoke in the air after the Rodney King riots.

I lived that close.

I saw the aftermath of the Watts riots.

Everyone knows that there is no civil disorder right now.

Everyone knows that we do not need Marines in any of our cities right now.

Many people in this room have pledged to defend the Constitution.

Let's remember what Lincoln said.

Let us have faith that right makes might, and in that faith, let us to the end dare to do our duty as we understand it.

Thank you.

Good evening.

I am in full support of item 12 and hope that there will be a unanimous vote to invite the OC Registrar of Voters, Bob Page, to make a presentation to the council on voting security in Orange County.

The sooner the better.

Additionally, I hope this item will include time for council members to address questions to the registrar to be sure all of your concerns are answered.

None of the elected council members have ever questioned whether they were elected legitimately.

Yet they consistently so doubt about other elections.

At the last meeting, without a prior agenda item to schedule it, we listened to a volunteer.

We never did get her name, read handpicked data points and tell us multiple times about these kinds of things that are then extrapolated to come up with astonishing numbers, implying that our elections are not secure and that illegitimate votes are canceling out our legitimate votes.

There were no experts here to clarify why these kinds of things were or were not areas we should truly be concerned about.

My thinking is that if no experts were willing to speak publicly and put their name on the line, it's probably not really the conspiracy that was implied.

Registrar Bob Page is willing to put his name on the line to explain exactly what procedures are used to safeguard our elections in Orange County.

After touring the registrar's office and learning about many of the security features that are in place, I am very confident in our elections, even the ones that elect people I disagree with.

I am hopeful that after you and the public hear from our registrar, you will be confident in our elections too.

Thank you.

Good evening, Mayor Burns and City Council.

Five Huntington Beach citizens and I will now read the October 15th Voice of OC op-ed, written by Ocean View School Board Trustee Gina Clayton Tarvin, entitled Huntington Beach Leaders Are Abusing Their Power and Silencing the Public.

Mayor Burns repeated heckling and silencing of residents at City Council meetings undermines the U.S.

Constitution, which he has sworn to defend.

Huntington Beach deserves leaders who listen and not bully.

In Huntington Beach, we often boast of being served city, a community known for its independence, civic engagement, and hometown pride.

But lately, that proud legacy has been overshadowed by something deeply troubling.

The erosion of civility and the abuse of power from the city's own leadership.

Good evening, council members and the mayor, Paula Schaefer.

Continuing, a city council that punishes speech.

Mayor Pat Burns, a former police officer who now presides over the council meetings, has repeatedly cut off public speakers in mid-sentence, arbitrarily reduces speaking time, and has heckled residents who dare to criticize his policies.

These are not isolated moments of impatience.

They represent a troubling pattern of behavior that chills public participation and undermines the democratic process.

It is not just the heckling or the name-calling, as disturbing as that is.

It's the message that it sends that only voices in agreement with the city council majority will be treated with respect.

When an elected official uses the power of the gavel to silence or humiliate constituents, it sends a chilling signal to others that speaking up comes with personal risk.

Ironically, many of these same officials wrap themselves in the rhetoric of free speech, declaring themselves defenders of the First Amendment when it suits their agenda.

But true commitment to free expression means defending it, even and especially for those with whom you disagree.

We cannot claim to value freedom of speech while mocking or muzzling residents who exercise it.

The First Amendment is not partisan property.

It belongs equally to conservatives, progressives, and independents alike.

And when those in power abuse the rules of public meeting to silence critics, they portray not only their oath of office but the very principles our democracy depends on.

Public service requires humility, not hubris.

Those who hold public office, whether on a city council or a school board, are servants of the people.

They are entrusted with the responsibility to represent all voices in our community, not just the ones that praise you.

That means creating an environment where the public can safely and respectfully share their views, even when those views make you uncomfortable.

Sadly, that trust has now eroded in Huntington Beach and City Hall.

Residents who once felt proud to speak at City Council meetings now describe fear, disgust, and humiliation.

Instead of focusing on solving the city's real problems, like public safety, environmental protection, and quality of life, too many meetings have devolved into performances of partisanship and personal attacks.

This is bigger than politics.

This is not a partisan issue, it's an ethical one.

Every elected official, regardless of ideology, should be outraged by the abuse of power on display.

Whether you're a Democrat, Republican, or Independent, the basic right to address your government without harassment is sacred.

It is the bedrock of our local democracy.

When leaders use mockery as a weapon or silence as a shield, they corrode public trust.

And once that trust is gone, it's not easily rebuilt.

Huntington Beach residents deserve better.

Leaders who listen, not lecture, who debate policy, not demean people.

Council Mayor, a call for decency and accountability.

Mayor Burns and his alleys on the city council must be reminded.

The microphone belongs to the people, not the politicians.

The diaspora is not a stage for self-congratulation, nor a platform for retaliation.

It is a place of public service, a place where civility, fairness, and transparency should be non-negotiable.

Democracy cannot survive when only the loudest and the most powerful voices are heard.

Huntington Beach should once again be a model for civic engagement, not only if we restore respect to the public square and hold accountable those who have forgotten that their power comes from the people.

Good evening.

I encourage everybody to vote yes on Proposition 50.

Our democracy depends on it.

I also encourage the people on the dais here to vote yes on number 12 on the agenda.

Butch, I get to talk to you again.

You wrote, we'll never get rid of voter fraud until we get rid of mail and ballots.

I'm not sure what you guys have in mind with your voter ID and trying to maybe outlaw vote mail and ballots, but you can be farther from the truth.

So I'm extending an invitation to all seven of you.

Actually, nine, also our city attorney or city treasurer and city clerk, sorry, ten, uh, to take a tour of the Orange County Register of Voters with Protect HP and see how completely safe and secure our mail and ballots are.

Not one, not two, but three measures that are taken to make sure those ballots the mail and ballots are not fraud.

Casey, you wanted the opposition to reach out to you, and this is our opportunity to do that.

So not only would we love to have Bob Page from the Register of Voters, but also for you to take a tour with us.

The invitation will be forthcoming.

We haven't decided on a date yet.

Thank you.

Good evening, Mayor and City Council.

My name is Russell Neal, and I live in Huntington Beach.

No one should be surprised that the adverse appeals court ruling over our housing element.

California court judges are Democrats first and judges second.

So dictate.

And that the council members refuse to sign the statement of overriding considerations on First Amendment grounds.

They will punish us for this, but we will then have a clean and clear First Amendment case for the federal courts.

You are fighting the good fight, and you have our support.

Thank you.

Thank you.

Next speaker.

Good evening, honorable mayor and honorable members of the city council.

My name is Kenny Noway.

I've lived in Huntington Beach over 50 years.

This time I want to thank our city treasurer, Jason Schmidt, our city attorney Mike Villoda, and City Manager Travis Hopkins for holding their series of community meetings wherein meet residents of Huntington Beach are able to express their opinions and ask questions.

At the conclusion of the meeting that I attended, I was able to give them a list, which included the following questions.

Given the projected deficit in the operating fund, what measures are being taken to reduce and eliminate the projected deficits?

I also requested an updated report on the status of the proposed repair and replacement of aging infrastructure.

We have an emphasis on the impact of these projects on public safety, and also how these questions of how these projects will be funded.

I look forward to hearing the response to my questions the earliest possible date since the impact of financial health of Huntington Beach and the public safety of all residents in the city.

Thank you.

Are there any other speakers?

Done appears so.

Any openness and negotiation disclosures.

Anyone got anything disclose?

Alright, moving on.

City managers report.

Thank you, Mayor.

Um our city treasurer Jason Schmidt has an update on a financial literacy class.

First of all, I wanted to thank all of our city residents, including a few who spoke tonight, who braved the rain last week to learn more about the city treasure and the city attorney's office and bring connections.

We really appreciate the feedback you provided on the potential ways we can improve our services and the lives of our city's residents.

For those of you who weren't able to attend last week, we'll be having four more of these chats across the city over the next two weeks.

So we hope everyone will come out for at least one of them.

In addition, we'll be launching next month on our website an online survey so that residents can provide incremental feedback and how we can further improve our services.

Along with prudent investing in transparency, the other commitment I made was that our office would work continuously to help our residents live save more to live better.

I spent my childhood watching my family struggle to balance a budget, and I know that personal finances can be complicated and intimidating for many of us.

In that spirit, we're extremely excited tonight to announce our city's partnership with United Ways Spark Point Program to offer five free classes this winter for the community focused on how to improve your personal finances.

The classes will cover a range of practical topics like setting realistic financial goals, tracking your money, creating a budget and sticking to it, building up a rainy day fund for emergencies, improving your credit score, and choosing the right banking services and products.

In addition, the Fair Housing Foundation will be offering free one-on-one financial counseling to class participants.

Classes will begin on Wednesday, November 12th at 5 30 at Central Library and be offered monthly in November, January, February, March, and April.

Sign up for these classes is now live, so please register to confirm your seat.

I wanted to expend a special thank you to Ashley and her team at community services who moved Heaven and Earth to find space in November so we could start these classes quickly, and also to Councilmember Gracie Vandermark, who's tirelessly advocated for trying to improve the financial health of our residents, having personally experienced the challenges posed by financial strain.

Thank you.

Hey Jason, are this is this a progressive like lesson or are they repeated classes?

Oh, it's a progressive.

So you'll see back there, there's five workshop topics.

So in each of the sessions, we'll do it.

But the expectation is if you sign up, we really want you to sign up for all five because they're each going to cover different subject matter.

So there'll be, for instance, one on banking, one on budgeting, et cetera, et cetera.

Awesome.

That's the structure.

Um, I just want to thank you, Jason, for taking the initiative.

Uh, before uh you were appointed, you said you had a lot of ideas for the city, this being one of them.

So you're bringing fresh set of eyes, first set of ideas, so thank you so much.

And I know many kids would benefit from something like this, but also many adults who did not take classes like this back in school.

If what's they weren't offered to many of us, so thank you for bringing this forward and giving anybody actually the opportunity who wants to take advantage of this.

And one of the things that we're going to try to do, uh, so Jessica and the public affairs department suggests this, and we're checking with United Way to see, given the proprietary nature of what they're doing and whether we can offer a zoom version of this class for folks who can't make it on time, or whether we can have a recorded version so people can watch after the fact.

But we still got to work with United Way on that.

So are you looking to try to get these on Zoom or maybe starting a new series on we'll try to get these on Zoom, and we've got a couple more weeks to work through this with United Way.

And the biggest issue is they're the ones who are teaching it, and it's their proprietary content, so we don't want to, you know, we don't want to have a trademark issue with them around the content.

All right, thank you.

Of course, yes, thank you, Mayor.

Um, Chow Vu will give a um uh report on some of our infrastructure.

Um, and I just note that this is one of the H items brought forward by the council um this past um six months to have updates on projects that are completed within the city.

So thank you.

Thank you, City Manager Chao Vu, Director of Public Works.

We wanted to give you an update on CIPs that have been completed so far, and this is at least a threshold of half a million dollars that was requested by council.

First up, we have zone two overlay.

Next slide.

So you'll see zone two is a salmon color um area in the picture in the corner pocket there.

This project rehabilitated the pavement for over 100 of the worst residential street segments in zone two, which is the second residential zone in our 12 zones that we have uh pursued within the city.

Zone two is bound by Warner Avenue to the north, Beach Boulevard to the east, Ellis Avenue to the south, and Springdale to the west.

Work included limited localized pavement repairs, cracked sealing, cold milling, striping, and an asphalt overlay.

Next slide.

So project benefits and schedule.

The overlay project extends the life of several streets and provides new asphalt for surface for the next 12 plus years until the street is re-evaluated for repairs.

The city's local street system is divided into 12 zones, like I mentioned, and streets are scheduled based on a selection of overlay or slurry treatment based on the existing pavement condition, and we call this the PCI rating, the pavement condition index.

Next slide.

Uh infrastructure funds, Measure M, gas tax, water and sewer.

And this project was successful because there were no change orders in this project, and all the bid items were all covered within the scope of work.

Next slide, Shannon.

So here you have some photos of the project.

Um it was this is a critical investment in the city's local street infrastructure, and it has successfully achieved its intended objective to extend the life of the paved street.

It was delivered with minimal disruption to the adjacent school, trash, and delivery schedules.

And this was acceptable within the budget margins.

We had excellent contractor collaboration as well.

This project will provide lasting benefits to community and serves as a model for future CIP paving efforts.

Next slide, we'll go on to the next project we have for you.

17th Street Arterial Rehabilitation.

Was the street that was selected, and it goes from Main Street to Palm, and it was chosen per our pavement management plan, which listed this segment with the minimum PCI rating of 42 on a scale of one zero to a hundred, one hundred being the best condition.

A PCI rating of 42 reflects that the pavement is in poor condition.

The street improvements included installation of asphalt concrete pavement, traffic loops, updated signs and striping, limited replacement of concrete curves, gutters, sidewalks, access ramps, and tree replacement.

This project is unique because it uses rubberized asphalt concrete, which contains crumb rubber derived from 100% California waste waste tire rubber.

This also reduces tire noise and provides a skid resistant surface.

A two-inch layer of rack includes over 2,000 waste tires per lane mile.

This project diverted approximately 5,000 waste tires that would have otherwise ended up in a landfill.

Next slide.

Next slide.

So in this project, we had two change orders totaling 8,000 for signing and striping.

So the change orders were at the request of staff.

The second change order was signing and striping.

So we added a yellow ladder crosswalk at 17th and Maine to increase pedestrian safety.

So here you'll see before and after photos.

This was a good project.

There was strong collaboration with the contractor to minimize disruption to the schools and services within the area.

We delivered the project on time and within budget.

This project will last at least 20 years.

Next slide.

You'll see the before and after pictures uh with the two uh with the intersections, one with the protect a permissive signal, and then the other on the right was a fully protected green arrow.

That can concludes my report.

Any questions?

Anyone have quite Don?

Uh no questions.

I want to say thank you, Chow.

Um I'm really as Casey, we were just kind of joking over his like you said, you like watching your kid grow up.

Um, I'm really proud of what you guys did.

We we brought this initiative forward, the council with the 7-0 to show the residents not what's going on with your tax dollars, but what's going on with our tax dollars.

We live here too, and uh our belief is the more the residents know how and why their public works or their city is working for them and show actual benefits, the better they can feel about their city and their their uh tax dollars and the watching and the physical realities of how they're spent.

So uh when when we brought this to Chow in public works, it was basically designed to bring some transparency to uh something that should be transparent and was not transparent for no other reason other than they weren't asked to bring this forward.

They've always had good accomplishments, but now at a at a cutoff of 500,000 or more on a contract, uh they're gonna bring it forward and show us, tell us why they did it, how they did it, how it went, how did they achieve their budget target, and those types of things should build confidence with the uh the residents that uh we have a you know a city staff that's gonna work hard for not just your tax dollars but our tax dollars.

So I really am thankful and and proud of the presentation.

Chow Chow's been very responsive and um great work.

Thank you.

Grace.

I can't see you butch is in my way.

So thank you for the presentation, and also um to thank you and staff for taking us out on that tour of the capital improvement projects.

That was very impressive.

Um we were down 17th Street, and just to see how nice that street looks, I kind of wish we had enough money and resources to do that throughout the whole city and what was that Admiral Admiralty Bridge as well, and to understand some of the challenges and uh setbacks.

So thank you for all that information and for bringing this forward so that the residents can see as well.

And I think who was on there with me, were you on that tour with me too?

Yeah, and Pat.

Okay.

Thank you.

No, just to expand on what uh Don said, I just want to, you know, thank him for initiating this.

You know, uh, I think it was a couple months ago, but you know, this is this is just good governance.

I'm sure you guys have seen some of the commenters come up and and complain to us like why don't you focus on the normal functions of a city and paving roads and fixing potholes, and I always say we do those things every meeting.

You guys just either don't stay to watch it or you don't see it on the agenda.

So something like this is great where you see the project, you see the before, you see the after, and more importantly, you see on those slides that's on time and under budget.

So it's really good to see, like Don said, like your tax dollars at work.

These are the gears and the functions of the city, and so I really love this this platform where you know we vote on these capital improvement projects.

You guys see us pass it, and then it when it comes to fruition and comes to completion, you can see the end results and see that again that it was on time and under budget, and that's just good governance.

So thank you, Chow for doing that.

Oh butch.

Thank you, Chow, and thank you for the the tour a couple weeks ago.

Uh, one project I would have loved to have seen up there was the one on Heil, the the pump station.

Was that on there?

It's not done yet.

Oh, but it was so beautiful while it was being constructed.

It's a big project.

Hope we get to see that one next next report.

Thank you.

All right.

Now, in honor of the uh Navy's 250th birthday, we have a presentation by Commander Gilligan and his uh staff.

Good evening, uh Mayor Burns, esteemed council and city leadership and citizens of Huntington Beach.

My name is Commander Gilgan.

I'm the commanding officer of Navy Talent Acquisition Group Southwest.

We're responsible for recruiting operations across Southern Southern California to include right here in Orange County.

Mayor Burns was gracious enough to afford me the opportunity to speak at tonight's meeting and to celebrate our nation's Navy's uh 250 250th birthday, which uh was last Tuesday.

Council, this public celebration is important because it is an ode to our collective heritage as U.S.

citizens, and heritage helps remind us of our roots.

This concept is fitting.

My roots are in Huntington Beach.

My parents met at Elmira and Huntington just down the street.

That was our first home.

My dad taught me to play basketball at Edison High School.

I then went on to the Naval Academy and then traveled the world.

My colleagues, Master Chief John Lanza and Lieutenant Jordan Augusta are both local products who have done quite the same.

So in celebrating 250 years of our Navy, let's remember that it isn't just about ships, planes, and bases.

It's about people and places.

Places like this, Huntington Beach, where the ocean meets community, where local values meet uh national service.

Philadelphia, 1775, 250 years ago.

A new nation was born, and with it a Navy.

A Navy forged in the fight for independence built from a handful of ships and the determination of a people who refuse to be denied their freedom.

From John Paul Jones' defiant words, I have not yet begun to fight to David Farragut's legendary command, damn the torpedoes full speed ahead.

Our sailors have met every challenge with courage and resolve.

At Midway, they turned the tide of a world war.

At Leyte Gulf, they fought the largest naval battle in history in the waters off Korea, Vietnam, the Persian Gulf, and beyond.

Our Navy has carried America's resolve to every sea.

Through those battles that shaped the course of history, the United States Navy has stood watch.

We've sailed to the farthest corners of the globe, defended liberty in times of peace and war, and written our story with courage, sacrifice, and victory.

Today the Navy remains the shield of our nation, the foundry where sailors are forged.

The fleet that stands ready on every horizon.

And the fight, our promise that have challenged America will win.

From wooden sailing ships to nuclear-powered carriers, from signal flags to satellites, from cannon fire to precision weapons.

For two and a half centuries, we've led the way in innovation, transforming the seas into a domain of unmatched power.

We are the world's most advanced, most lethal, and most ready maritime force.

A global Navy that deters aggression, protects trade, strengthens alliances, and brings relief in times of crisis.

But at the heart of it all are the sailors, men and women from every walk of life who proudly wear the cloth of our nation.

Sailors who stand the watch tonight, just as others have since 1775.

Ensuring that America's promise endures.

250 years of honor, courage, and commitment.

250 years of foundry fleet and fight.

And we're just getting started.

Happy 250th birthday, United States Navy.

All right.

Good evening, Mayor and members of the city council.

My name is Lieutenant Jordan Augusta.

I'm a service warfare officer and officer recruiter with uh Navy Talent Acquisition Group Southwest.

And I was raised here in Orange County.

I am proud to call this community my home.

My family and this great community played a vital role in helping me become the person and the officer I am today.

I graduated from the U.S.

Naval Academy and commissioned as Naval Officer in 2020 and went to complete two hours two tours on USS Gridley in Everett Washington.

Tonight I stand before you on behalf of the United States Navy and uh as we truly celebrate this historic uh milestone, our 250th birthday.

Uh, for two and a half centuries, the U.S.

Navy has defended our nation, safeguarded freedom of the seas, and supported global stability and humanitarian missions across the world.

We reflect with pride on a legacy with uh on uh service, sacrifice, and unweavering commitment to the values that we that define both our Navy and our community.

With the support of a communities, we are better equipped to uh continue the Navy's mission of maintaining freedom to seas, deteriorating aggression, and projecting power in the defense of our nation and our allies.

That community support from cities like Huntington Beach is essential, whether through partnerships with schools, participation in local events, or simply recognizing and appreciating our service members and their families on a day-to-day basis.

Uh your involvement truly strengthens our Navy.

Your engagement helps us inspire the next generation sailors and continues uh building a Navy worthy of our nation.

On behalf of the men and women uh of the Navy, thank you for recognizing this milestone and supporting those who serve.

Thank you for honoring our service and uh for standing with us as we chart a course for the next 200 years.

Happy birthday.

Good evening, Mayor, uh City Council and uh all the residents.

Uh my name's John Lamza.

I'm uh the command master chief of NTAC Southwest.

I've been in the Navy this December will be 30 years.

Um I'm from Whittier, California, but I spent a lot of time in Orange County.

My uh two of my aunts and all my cousins uh were lived in uh Yorbalinda and Placentia, and um Huntington Beach was the beach that my family went to uh because my mom did not like to drive on the freeway, so Whittier Boulevard to Beach Boulevard, and um every time uh we come down here, you could just smell the beach, and we knew it was uh gonna be a great day.

So um it's an honor to be here and be able to talk to you today.

Um I do want to tell one sea story uh because uh large part of my Navy career has been on the West Coast on ships, and our ships are um go to the Naval Weapons Station at Seal Beach to reload and uh disarm.

And so every time um every before and after every deployment, uh we got an opportunity to um visit, and um, you can either go north or you go south.

And the smart sailors came south to Huntington Beach and spent our nights and enjoying uh time downtown and um and um it was great.

Um I will tell you that um it is top notch and um I've been to many many ports and many many um waterfronts, but your waterfront is uh world class.

Um I do want to talk about what uh my CEO and uh Lieutenant uh talked about, and it's really about the people.

The sailors in the Navy are what uh make us great.

And um I know firsthand the power of recruiting and what it can do to change lives, not only for me, but my son is also in the Navy, he's uh uh a hospital corpsman, stationed with the Marines in Okinawa.

And um when you're when you're living it yourself, you don't really realize the maturity that's gained, but watching my son grow in these last five years has been a sense of pride for me.

And um that's what we at NTC Southwest um hope to provide to the young men and women of Huntington Beach.

Thank you.

Mayor, my job as commanding officer is to bring the fleet where it isn't.

I can't think of a better place to bring the fleet than Huntington Beach, Surf City.

My recruiters, though, often operate outside of their comfort zone, away from their ships, submarines, and aircraft, SEAL platoons.

This can be challenging, and they often face scrutiny uh as outsiders to say the least, uh, and just doing their job.

As a as an anecdote, a recruiter operating from NRS Huntington Beach, which is actually in uh Fountain Valley down the street, uh, was recently greeted with a uh Rachel Slur on Beach Boulevard as she was uh just trying to do her job.

Uh recruiters often face challenges accessing schools, uh, just to share the stories that we're here sharing with you tonight, to share those experiences with your sons and daughters.

Mayor asked that you help ensure a safe environment for my recruiters and encourage your colleagues on the school board to provide fair and equal access to present these stories uh in your schools.

As you've heard, the Navy has shaped all of our lives in the most amazing ways possible.

We've traveled the world, we've become better men and leaders, and we're uh all better for it.

So I humbly ask for the opportunity to offer the same experiences here in Huntington Beach.

Thank you to you and the council and the citizens here of this uh city for your time.

I just want to thank you guys.

Thank you guys for your service.

I don't think you'll find a more welcoming city than Huntington Beach, and it's our honor to have you guys here tonight.

And I appreciate your guys' presence and I hope you guys have successful recruiting.

We have good men and women in this city that would be hopefully definitely willing to serve.

And I just want to real quick, I think Lou Conter, last surviving member of the Arizona, lived uh through uh December 7th, Pearl Harbor just passed away, I think last week or so, but I just want to recognize his passing.

But thank you guys again.

Thank you.

Uh yeah, if we can.

Yeah, anybody else got something to say?

Tolstoy, I mean uh Don.

That's an inside joke.

I'd like to say, gentlemen, that uh as the son of a naval sailor, my dad fought in the Korean conflict and um was a proud uh naval uh sailor.

And um Huntington Beach is a very patriotic city.

And I hope you're not getting pushback at the school boards and things like to get access to share the stories.

Um we have to be proud of our military for one reason.

It's something to be proud of.

And there is something to say about the Navy.

When you see that aircraft carrier come rolling in, that means it's business, along with all the side uh the side ships that travel with that.

But it's just an unbelievable sight when you see the dominance that we have in in the ocean.

Thank you to the sailors uh in the Navy.

So God bless you guys.

Thank you.

Chad.

Uh yeah, I certainly could speak to just what a benefit it is to, you know, be signing up to serve in the Navy.

You know, there's a saying if you aim at nothing in life, you'll hit it.

Yeah, unfortunately, that's kind of where I found myself coming out of high school, you know, attending the local community college.

I I didn't really know what I wanted to do.

And there's no worse feeling than that, I think, as a young person, not knowing what you want to do and have nothing to aim at.

And as I brainstormed, uh, kind of figured, you know what, maybe I'll join the military, you know, and be a part of the most elite, figured out what branch I wanted to be a part of, and just felt so great to really have something in my crosshairs that saying, aim small, miss small.

You know, I knew what I wanted to do, and it gave me purpose, but not only that, it also gave me the opportunity to go to school later.

Uh so for some people that maybe feel like you know, college isn't really for me right out the gate.

You know, well, the military will give you that discipline, you know, they'll give you a paycheck, they'll feed you and teach you a lot of great lessons in life.

You could do it at a very young age, and you still have so much of your life uh ahead of you.

I want to see if I could ask you guys some questions, uh, maybe just to kind of you know bring a little bit of a high view in terms of you know, how's recruitment going, like on the national level versus how it is looking maybe locally here in Huntington Beach, Orange County?

Sure, thank you.

Uh nationally was a banner year, um, one of the you know best recruiting years, not only for the Navy, but as for the military as a whole uh in the last 10 years.

Uh the Navy itself had record numbers.

Uh intact Southwest hit record numbers.

Now we're responsible for all of San Diego County, Riverside County, San Bergadino County, Las Vegas, or you know, Clark County, as well as Orange County.

Um I will say that we struggle in Orange County.

Out of my seven recruiting divisions, Orange County is often my lowest performing division.

Um the competition is fierce.

The Army and the Marines do very well here, and that means they've uh established presence and built relationships within the community, which is what recruiting is about.

It's about building relationships and um sharing the opportunities that are available.

Um, but uh across the board uh recruiting is in a very good place, and it makes me uh grateful, you know, to support it this time and uh have the ability to share that with communities like this.

In terms of obstacles with some of these schools or school boards, what maybe has changed over the last 10 20 years in terms of you know how it used to be and now relationships with schools nowadays between the recruiters and being able to get in front of students.

I can't speak to you know what it was like in the past.

Um I think it ebbs and flows, and I think part of it does uh you know tie to the political tide.

Um, but by and large, it it the access in the to the schools is there.

You know, schools allow us in, uh, and it just boils down to the type of access.

Ideally, a recruiter does what we're doing here right now.

We're presenting and presenting about sh uh sharing stories and connecting.

Uh oftentimes our recruiters are able to set up a table at uh school lunch or uh uh in a cafeteria, which is not a bad thing, but um, you know, we're searching for some of those ideal uh constructs and and we find those in in other communities and they're available in Huntington Beach, um, just not in uh every school that we're recruiting in.

And so hopefully for any principals or school board members that might be watching this and maybe they just didn't know, you know, before.

Like, hey, we just need to invite these guys in and um give them more of an opportunity to kind of rub shoulders with the students and let them know about opportunities for the future.

Hopefully, this puts those folks on on notice and brings that awareness.

Yes, sir.

Thank you.

Yeah, I just want to thank you guys for your service and for everything you guys do for our country and recruiting.

Yeah, for sure.

And then, you know, you guys have Pat's number, but please reach out.

I'd like to see you know, meet with you guys separately to see how we can help you, obviously, within the city, get more build more relationships.

You know, Chad touched on it, you know, whatever.

We don't have purview necessarily with the school boards, but we do obviously have influence on the city council, so some inroads we can make with you guys, but we want to make this as frictionless as possible.

And I mean, we're a coastal city, so our recruitment for the navy should be beating the army, right?

I mean, come on.

And Air Force, so I mean, come on, we gotta we gotta step it up.

Well, come on, budge.

But anyway, yeah, just reach out to us and I'll I'll get you guys information from Pat and you know, whatever we can do to help you guys.

Thank you.

Gracie.

Just want to thank you for your service.

Happy 250th birthday.

And I'm really grateful for the fact that kids are being given a a different opportunity at life with with if college is not for them right off the bat as it wasn't for many of us.

Um, the military would have been it's perfect.

It gives you time to experience different ideas, different countries and options.

Whereas some kids are lost right out of right out of high school and to college, um, whether it's the trades, whether it's the military, or whether it's college, I'm just grateful that the kids have this opportunity because I think many times kids who choose to not go straight to college are overlooked, or they're ashamed or shamed for not taking that path.

So I'm very grateful.

I had family members in the military, and it turned them, it changed them from voice to men.

So thank you.

Butch.

Thank you, Mayor.

We had a chance to speak before the meeting, but again, I want to uh uh echo what my uh uh counterparts up here said and uh wish you happy birthday, happy 250th birthday.

Uh thank you for your service.

I won't let my experience and uh career in the United States Air Force keep me from sending people to the U.S.

Navy uh recruitment center on Brookhurst in Huntington.

Well it's actually in Fountain Valley, but the Huntington Beach recruitment center.

But really, thank you very much.

Uh I'm proud to have you guys here tonight and proud to have met you and and proud to have such great people uh representing the United States.

Thank you.

Yeah, I met uh commander a couple weeks ago at the Pacific Air Show while he after he swore in.

How many how many young persons?

Fourteen.

Fourteen.

It was a very impressive, just so cool just to see those young individuals just go on that course in their life.

Very proud of what you guys do and very proud of everybody who serves.

Thank you.

Thank you, Mary.

Oh, sir, uh if we don't mind the can we take a picture with y'all, I can see that.

You guys can't go.

Okay.

Moving on.

All right, consent counter.

With anybody like to pull an item?

All right, Clerk hearing none.

Items eight and nine for consent calendar.

I'll move it.

Second.

We made a motion a second to approve.

Call it vote.

Councilman Twine.

Yes.

Councilman Kennedy?

Yes.

Mayor Pro Tem McKeon?

Yes.

Mayor Burns.

Hi.

Councilwoman Vandermark?

Yes.

Councilman Gruel?

Yes.

Councilman Williams?

Yes.

Items pass seven zero.

Okay, moving on to item number ten.

We're going to open a public hearing, but conduct a tax and equity fiscal responsibility act, TEFRA public hearing for the Pelican Harbor Apartments.

Adopt resolution number twenty twenty-five-sixty-five approving the issuance of the California municipal finance authority CMFA.

Continued in issuance of tax exempt bonds in an amount not to exceed twenty million dollars for the Pelican Harbor apartments and approve amendments to affordable housing agreements.

City Clerk, do we have any supplemental communications for this item?

Yes, Mayor, we have one supplemental communic um one supplemental email.

Okay.

Uh staff, please introduce the report.

Good evening, uh Charles Kovac, housing manager.

Uh this evening we'll re uh hold a required public hearing related to the tax and equity fiscal responsibility act, commonly known as TEFRA, for the continued issuance of tax exempt bonds related to the Pelican Harbor Senior Housing Project, located at 1843 One Beach Boulevard.

First, I would like to provide some background information.

Pelican Harbors is a forty-three unit permanent supportive housing development that was completed in December 2024 and occupied as early as January 2025.

The project serves one of the most vulnerable populations in Huntington Beach, formerly homeless seniors over sixty-two years of age, many whom are disabled and face significant health and mobility challenges.

The project includes on-site case management, supportive services funded through long-term contracts with the County of Orange.

The project serves extremely low and very low-income disabled seniors, and per the two thousand twenty-one housing agreement currently remains affordable for a period of sixty years.

Inclusionary loan funds, which funds are for exclusive use for affordable housing activities.

Under federal law tax law, the tax exempt bond financing requires a public hearing before the bonds can be issued.

This requirement established by the TEFRA in 1982 ensures transparency and provides an opportunity for public input.

A TEFRA hearing must be held by the governing body of the jurisdiction where the project is located, in this case before the Huntington Beach City Council, even if that agency is not issuing the bonds.

The original TEFRA hearing for Pelican Harbor was held in December of 2021, prior to construction, and bonds and the amount of 20 million were subsequently issued by the California Municipal Finance Authority, CMFA for this project.

The project was developed by Jamboree Housing Corporation, a nonprofit affordable housing developer with additional funding from multiple federal and state sources, including Orange County Mental Health Services Act funds, State of California no place like home funds, and 4% low-income housing tax credits.

Tax exempt bonds issued by CMFA served primarily as a construction loan with a smaller portion to be retained for permanent financing.

The city did not issue the bonds, it is not the borrower, and has no liability for repayment.

The bonds are the sole responsibility of the developer and are repaid through a combination of tax credit equity and rental income.

As previously mentioned, the original TEFRA hearing was in December of 2021.

However, the approval has since expired after three years in December 2024.

So to comply with IRS regulations and allow a portion of the previously issued bonds to transition from temporary construction financing to long-term permanent financing.

A new TEFRA hearing must be held by the City Council.

This requirement does not reflect a new bond issuance, nor does it represent additional financing or cost to the city.

It is a procedural step needed to maintain the tax exempt status of the bonds already issued.

If not completed, the bondholder could lose the ability to keep the bonds tax exempt, which would create financing instability for the project and increase the risk of foreclosure.

In exchange for housing hosting the TEFRA hearing, the city negotiated several enhancements to its existing loan agreements with Jamboree.

These include extending affordability to 99 years from the current 60 years.

Furthermore, the TEFRA hearing does not authorize any new development, alter the project in any way, or affect current tenants.

It is strictly a procedural requirement to maintain the tax exempt status of a portion of the project's financing and use of the previously issued bonds for permanent loan financing.

By approving this action, the city council reinforces its commitment to supporting solutions to reduce homelessness in the community and protecting the city's current investment without taking out any new financial risk or obligation.

With that, the staff recommends that the city council hold a TEFRA hearing this evening, adopt resolution number two thousand twenty-five-sixty-five, um, adopt the first amendments to the affordable housing agreement, amended and restated agreement containing covenants, and the city's promissory notes related to the home funds and inclusionary funds, which these documents all address the benefits of the city will receive by um hosting this TEFRA hearing, and then of course authorize the city manager and the housing authority uh executive director to execute the previously described documents.

So with that, that completes staff's presentation.

Um we are here for available for any questions you might have at this time.

Alright.

Where'd that didn't uh where'd the three million come from that the city loaned them?

The three million was roughly around 2.8 million of federal home funds.

It was a repayment of a project back in I believe 2019 or 20.

So we received a full lump sum of I think around three million dollars.

So we had some we we switched out some money.

Basically, it was federal dollars that we needed to use, so we um just replaced some other funding that we had.

And then the balance is uh around 200,000 is from the inclusionary housing like in loo fees, our trust fund account that we have, it's basically in lieu fees that developers pay into it.

How much of that was the in lieu fees?

Uh about two hundred thousand dollars, so most of it was tax, just basically taxpayer money?

Uh most of it was federal uh home dollars, yeah.

If you want to call it taxpayer money, yeah.

I think everything's the origination is taxed.

If it comes from the feds, it's basically taxpayer money.

That's correct.

All right.

Um the rents, how are the rents collected?

Uh isn't there a 30 percent?

Is that the way it works?

30 percent of their income?

Yeah, it's that's like uh is the rent so much and then but they only pay 30 percent of their yeah, and because we're um uh what, almost three quarters of the units are extremely low income, the rents are significantly really low, and you're only paying 30 percent of their income, so the income is very low.

So 30 percent of something doesn't really generate a whole lot of money uh for these type of projects because the balance nine units are still very low income.

There's no like low or moderate income units in this project.

But the but the rent still gets paid.

Like how much is the the okay they pay 30 percent, but if they're making three grand a month, they pay eighteen hundred or uh somewhere like that, right?

If they if they're fortunate to be I don't think they would qualify three grand a month, but if they um were paying three grand a month as an example, then thirty percent of that's like a thousand bucks.

Yeah.

Um but I I don't know the the exact demographics of the um in terms of who's paying what or uh but if they're paying a part of uh is it the rent set?

Is there a set rent?

Then it's subsidized by other monies to bring it up to uh yeah, I mean we get some vouchers from the county.

Um the rents have a maximum amount.

They're only they can only go up so high, they can only be a maximum rate.

Um, I don't have the number in front of me, it could be like 500 bucks uh for the rent, so whatever they can't pay, um is potentially subsidized up to the maximum rent, subsidized with either some of the bond money or taxpayer money.

Well, or uh vouchers provided by the county, which is taxpayer money, right?

Sure, yeah.

Um the project, how was it?

We only gave them three million, but then they built it on bond money, is that how it was?

Uh and tax credit money and some county money uh and I believe and as I mentioned uh some no place like home state uh money to state grant, more taxpayer money.

Uh sure.

I mean, so it's largely funded by taxpayer money, the whole project.

Yeah.

Okay.

Um, what's the ramifications?

Should they we not grant this or approve this uh TEFRA or whatever.

Well I mean if you don't approve the or have the hold the TEFRA then the ramifications would be that their conversion of the of the um of the construction loan not all of it can be converted to the permanent financing for the project and also they lose their tax exempt status the interest rates would be higher therefore their debt service payments on the bonds would increase and because the margins are so thin with these type of projects because of the low low low affordability that we're dealing with I you know they would probably be very tight in terms of cash flow for the project um which could lead in the long run if if cash flow doesn't meet the expenditures of the project or the debt service payment included or just maintenance then that could result in potential default down the line and that could be you know I'm not saying that that would happen it I haven't witnessed the default but that's possible all those monies that were given to build this project were conditional on being low income for the elderly disabled or something to that effect correct yes so that wouldn't be honored in any way after if uh they default well if they default it really depends upon what what gets wiped out does our loan get wiped out do other loans get wiped out like the county and the um the so our three million is a loan yeah ours is a loan paid by the bonds yeah well they're paid eventually by potentially income generated from the project it's a residual receipts where if there's any money left over after operations then we get you know like 25% of that funding and it starts to pay down the the interest and the principal on the project uh on in the loan excuse me the loan that we had so yeah eventually in these type of projects you don't really see much repayment in the first like five to ten years uh because there's other factors involved so um and the five thousand a month being requested per year at the end of 99 years that's like a cup of coffee potentially I mean I'm just wondering that's pretty small amount especially without any cost of living increase uh or anything like that.

I'm just kind of curious that seems even on today's dollars at a municipal leather level with a project like this seems awfully uh nominal.

Yeah I mean I don't think that was the main point of I think the interest is the it was the was the main point of the um but I'm still curious about what this five thousand was this just I mean I'm like I say five thousand a year for a project to this I mean like I say at the end of the year that 5,000 will fill out a few you know some gas for the our still uh gas using cars uh for this fleet uh within the city but I'm just kind of curious that's awfully small amount uh given what the credit would be you know uh tax free versus interest bonds I will say that five thousand dollars is a lot to the developer especially in the initial year because of the razor thin margins right now on the cash flow because they're not it's not like they're walking away with money so have you guys inspected their books to assure that?

Uh I mean we haven't received any audited financials yet because we're still having that it's been the first first year of the project so we'll we'll receive those probably in January.

Okay and the two percent starts at of the interest the starts at the end of 20 years?

Uh yeah, so year 20 is when it begins.

And what does that represent at the end of 99 years?

It's it's could be it's it's like over sixty thousand dollars a year increase.

So um I calculated around a little bit less than five million dollars.

At the end of yeah, at the end of the term ninety nine, seventy-nine years, seventy-nine years.

Exactly.

Seventy-nine years, yeah.

Uh minus the 20.

Yeah.

Uh that's correct.

All right.

I think that's all I have for right now.

Anybody else?

Don uh Don.

Thank you, Charles.

Uh a couple questions here.

Um, so the TEFRA from 2021 expired 1224, correct?

That's correct.

So is there is there any um protocol for uh waiting this long for another TEFRA hearing?

So we're we're 10 months into 25.

Um guidelines?

I'm not sure uh there's a certain timing that might be more of a uh uh of a question for jamboree that's here, but I would say that there was a time period where between the time the the project closes and the time they're allowed to convert to permanent financing, that's like six months if I'm correct.

So then we got into July.

Initially we were planning to come in July.

Didn't they come back in oct I mean like February or maybe March and uh asking us for the same thing without the five thousand or the two percent didn't we they came to us once and we said no and now they add it uh some uh yeah I can't recall a formal um council meeting where they came back and uh regarding this agenda item is February, March.

Yeah, but that we we initially planning to go in July, which felt their schedule fit the jamboree schedule, but um there was a further negotiations um that went on that got to the point we are at tonight, and that's why we're here tonight.

I mean I would like to know the answer regarding that the CEFRA guidelines.

I mean the TEFRA hearing here is all about them being able to obtain funding, and I want to make sure that you know they are compliant within the the TEFRA timelines.

I mean, maybe m uh this gentleman can tell us.

Um the uh uh the requirement to to have an active TAFRA is uh is triggered by our conversion of the the bonds from uh construction to permanent financing.

And quite frankly, this is new to us too.

We've never we've never gone through a three-year TEFRA period before because this project happened during COVID and and uh had to deal with a lot of the the uh issues around COVID around supply chain and and manpower, this was delayed.

Uh we've never experienced this before, so this was new to us.

So when we started talking in uh in February about converting financing, that's when uh our our council did research uh as to what was necessary for on uh with an expired TEFRA.

That's when they informed us that we would have to have a r request a new TEFRA.

That's when we came back and talked to the city in February.

Okay, so you feel like your council advised you that you're compliant with the the TEFRA guidelines?

Okay, yes.

Um the next thing would so Mr.

Covet over so the city hasn't seen any payback.

Um they said you know the first five to ten years razor razor sharp margins, but you're a hundred percent occupied.

You must have run a pro forma, so I don't see the income getting better.

There's no cap X being put into your project now.

So what would be the variance in in incomes?

Is there rental increases?

There are uh there are and typically annual rental increases.

So they average two to three to four percent, but over time that does that does accrue.

So do you have any idea when we'll start seeing payback on our subordinated loan?

The uh there are a number, there are a couple of items uh in front of the the uh city loan and and the other residual seats loans.

Our projections show that that payback on those would start in uh basically in year sixteen.

Okay.

It's a long way out.

Um the next question I had was um it seems like maybe due to circumstances you know jamboree seems a little tenuous at you know like bordering on I'm not gonna say insolvency but like the make or break on this loan almost so to speak yeah um could your things been done better could you know are there any learnings from this?

I don't yeah this you know I took a look at you guys have a three billion dollar portfolio it looks like market value so I mean you're you're not new to this right yeah this is the typical way that these projects are uh are underwritten typically the the the metrics we use are a one fifteen debt service coverage ratio which means that virtually all of the the income say for that 15% is used to for for leveraging that's a very typical uh structure in the affordable housing world okay um just looking over my notes here you know I think I think you've answered my questions for now thank you great yeah sorry I'm sorry I just thank you for the opportunity to answer questions and thank you.

I wouldn't go anywhere yet if you can I'll stay here.

Good evening.

How many residents are living in Pelican right now?

We're 100% occupied 100% that's 43 correct right okay how many are um uh Huntington Beach residents we don't know exactly how many are Huntington Beach residents we have tracked how many uh have ties to Huntington Beach and that's whether they lived worked or went to school in Huntington Beach and and by our count it's about 86% of the residents.

Okay.

Excellent glad to hear that um these are all seniors elderly they're all summer handicapped correct and this is kind of their residents of last resort else they might become uh what's the proper term without abode or something like that homeless without home yeah you if if we can if we can keep these 43 residents uh housed we we we think that's a success a number of them will go on to uh once once they're stabilized we'll go on to other housing solutions right um and then we'll move new folks into that uh but for some of these folks yeah this will be their their their last residence thank you i i will be in support of this uh i last thing i want to do is is put any seniors and especially handicapped seniors in um uh jeopardy of being displaced so i will be supporting this so you're saying that you guys would you put these people on the street if the if these bonds didn't go through the project could fail yeah as a as mr covac would pretty eloquently explained that this is this would be there would be a cascading effect um that you know the the raiser thin margins that 115 debt service coverage ratio that we talked about would would pretty quickly get get flooded also we would probably have to jamboree would put in uh additional equity which would become a general partner loan um so we would try to uh obviously continue to to run the the project as stably as we can if the expenses overwhelmed us we would no longer be involved in the deal what what the first thing that would happen if we were in default is our our lender would foreclose on us and remove us as general partner what would happen to all those taxpayer dollars that got invested in the the the uh private loan from our from our lender is in first position and they would likely wipe out all the subordinate debt which is the taxpayer investment correct right just a couple questions I guess for both of you but although some of them might have been answered in parcel um so 100% occupancy uh 43 seniors living there do you guys do you know the more recent numbers of unsheltered seniors living in Huntington Beach I know in 2022 it was 188 I I I don't know the the point in time kind of top of my head.

Okay.

That sounds right that's and then and then generally speaking for Orange County, just bringing it much broader.

I know um because you're involved in a lot of the projects here in Orange County, just from your perspective, just the seniors specifically trying to break through that cycle of homelessness.

How many of your projects right now in Orange County specifically target seniors?

I don't know specifically in Orange County, but uh roughly we have about 11,000 units throughout California, and about a third of that, a little less than a third of that are s reserved for seniors.

Okay.

Okay, gotcha, gotcha.

I just think it's important context.

I don't think a lot of people recognize when it comes to kind of that cycle of homelessness, especially in Orange County.

It actually is a lot of seniors.

Last number I saw in 2024 was 7,322 seniors that were like completely unsheltered.

So the uh butch you answered my question about, I asked the same question about locals, but we can assume 80 to 85% of that.

In terms of the financial and compliance reports, do we get any of those on a regular basis?

I mean, even unaudited from the city.

Sure.

The city has a couple of different roles to play in this in this project in this project, and and that includes full uh uh access to our audits and and uh as as they're prepared.

And then you probably have mandates as well through the state or even the federal government.

Is that just yearly?

Yeah, a lot of compliance and a lot of eyes on this project.

Yearly, yearly audited.

Yes, both from our lender, our investor, the the IRS, uh the state, the county, as well as the city.

Is Jamboree as the developer?

Do they take a management fee or even a fee through the process?

We actually don't manage the uh development ourselves, we contract with a third property with third party property manager.

We do have a small asset management fee.

It's I believe it's fifteen thousand dollars that covers our costs of overseeing the project during uh during its operations.

And and through the various services that are provided within the project itself.

Um how many outside service providers are there?

We provide uh most of the services.

There are we do uh have uh a couple of two different uh service providers uh that contract as well.

And then just to kind of dive into like the you know kind of catastrophic hypothetical in the event that there was a default on the loan before we started, you know, it started to get things started to unwind.

I mean, there's various nonprofit organizations.

We talked to Mercy House in the past, obviously Illumination Foundation is a big one that we know the name of.

Would any of those in theory, those nonprofits, step in and try and bridge any gap?

We would well be before we got to the default, we would tap any uh as many resources as we as we possibly could to responsibly fill any any any gaps that there are.

That's that's just the way Jamboree operates.

We've we've operate properties at a loss uh previously.

It's not we don't like to do it, but but as as you know, we're we're mission driven, so that's part of uh part of our mission.

And in your entire portfolio, have you ever had any projects that have defaulted?

We have not.

Okay.

That's it for me.

Thank you.

Go on.

Just to go on the record, I know all these people, nobody wants to put seniors out.

But questions need to be asked.

I mean, our taxpayers expect us to ask questions even if we're not on the hook as a as a signer, so we can all learn together.

So, how do you guys make your money?

I'm just curious.

Sure, it's a it's a good question, and I would like to state I I I'm very grateful for the the council's support throughout the whole process as we've completed and and are operating what is a now a successful project, uh staff and and council, and especially as we've talked about this, uh the extension of this TAFRO approval.

Uh many of you have given a lot of thoughtful uh time consideration and attention to this matter, and I really do appreciate it, and and I appreciate the questions this evening.

Uh Jambury primarily we make our our our uh revenues through developer fee, which is part of the capital structure.

So built into the cost of the project is uh uh a developer fee.

That's how we keep our lights on and and pay our staff.

Do you do you have an equity position or do you have do you have dollars invested?

You take fees out.

Do you have investment dollars in?

We uh all the we finance all the pre-development funding ourselves, typically in in the affordable housing world that this is the box that we've that we've constructed to to build affordable housing in this country.

Uh the the additional funding comes from the public sector, uh, as the mayor uh pointed out.

Um, there is no real equity position to have because those returns are so small because the cash flow is so small.

There aren't really economic returns available.

Okay.

And the last question I had is in the PowerPoint, it said um a portion of the funds will transfer.

Um, one of the sentences up there it said a portion of the funds will transfer.

Yeah, so we we initially issued 20 million dollars in bonds to fund our to fund the construction and to bridge the other sources that come in.

So now that we've completed and are ready to convert, those sources are coming in.

Tax credit equity funds from the county funds from the state.

We use those funds as they come in to pay down that bond from 20 million dollars to approximately 3.7 million dollars.

Um so that that 3.7 will remain as the permanent loan.

The rest of the bonds are are repaid.

Okay.

Thank you.

I think it's really important to understand kind of context-wise, the previous council that had approved the Tetra and gave you the three-year window was a very different kind of council at that time that was probably more attracted towards the affordable housing projects and foregoing you know, property taxes.

Uh I'm I'm curious how much property tax are we foregoing?

Because there is a tax exemption right for for the property uh over the span of the next 60 or even going on to 99 years.

I mean, is it safe to say that as a city we're foregoing millions upon millions of dollars in property tax?

Yeah, that's the uh under California state law that that is uh the property tax exemption is available to us, and and we did do that that helped make the the capital structure possible.

But yeah, you're absolutely right.

Over the over the ninety-nine years, it would certainly be millions of dollars.

And so I think that that's something that is helpful for jamboree, but that's a burden on the taxpayer, uh, because it's gonna be the taxpayers that ultimately pick that up while you're making your money still doing what you do through development, you know, impact.

Um I'm curious, the pilot, five thousand dollars uh a year, uh would you guys be open to you know possibly expanding on that?

We had a project with Marisol, they had a TEFRA, and their payment in lieu of taxes was pretty much what the uh tax assessment for that property would be, not necessarily saying or asking for you to come up to that level, but would you be open to raising it beyond the five thousand?

Yeah, we we we took a long hard look at this.

We truly did as we were discussed as we discussed this with some of the council members and staff.

Um because this uh this request happened after the project was essentially baked uh and and funds were committed.

It was very difficult for us to to move.

We I think did a a good job on on meeting the request.

We were able to extend the regulatory agreement to 99 years.

We we were able to uh to uh identify the five thousand dollars available as as we we've talked about, is there very thin margins on this project.

Um and then uh third, we were able to uh increase the the loan, the interest on the the city loan after after year 20.

So we were able to meet all three items on a baked completed deal.

I'm not sure.

I mean, if going from 60 years for affordable here in Huntington Beach to 99 years, exactly a carat, you know, to you know this city council or community.

Um, yeah, that that was the that was that was the request that came from from staff and and from council members.

Okay.

Um so would you guys be open to possibly raising the ceiling on that five thousand?

Uh we uh I I think we've done a good job of of responding to the to the request is as much as we could.

Again, this this project is completed, we're we're proud of it, it's operating well.

We I we we were we kind of did what we could in terms of without uh risking the financial viability of the project um in meeting kind of all three of the bullet point requests.

I appreciate the fact that you guys were able to take a look at possibly restructuring some of this, you know, and bringing up the the $5,000 changing from 60 years to 99 years, and I see the this as maybe an opportunity to do a little bit more uh restructuring uh before we sign off on it.

So for me personally, the way that I see it, it was it was a past council that approved this.

I don't think that this current council probably would have approved this type of project that put such a burden on our taxpayer, and we have to look out for the best interest of our citizens and community and and how we campaigned and you know we were voted in.

And so what I would like to do is to make a substitute motion move to continue.

Well, Chad, yes, let's put that off until we discuss a little bit more.

Okay, but I got a question.

Uh the rent you say is gonna go up two to four percent.

Is that a fixed?

I mean, no, no, it's it's it's typically bait it varies.

Um there are two different factors, but but it goes up by by how much the median income in the area goes up, and then there's also a factor of how much vet voucher payment goes up.

It's not it's typically based on cost of living increases.

All right, anybody got any other questions?

Andrew, what do did you say that there was a low income um tax credit that we received through that expired in 2024, but then people moved in in 2025?

Is that correct?

Did I hear that properly?

I think the TEPRA expired, didn't it?

Yeah, the TEP the TEPRA expired in December of 24, but the uh the tenants moved in in early 2025.

Okay.

Would we have needed this hearing if the if you guys what was for the procedure if the TEFRA didn't expire at that point, you guys would we still needed to come to council to extend it?

Yes, if we if we'd converted prior to December of 2024, we would not uh needed the the additional tougher hearing.

Okay.

Okay.

So there are 43 units as occupy one person per unit, or are there like couples living on there?

The limits on on one bedroom apartments is three people per unit.

But in I I believe in every single one except one of the units, I believe they're all single occupancy.

Okay, thank you.

Quick uh real estate question.

If you guys don't know the answer, maybe JV does.

But kind of the history on the property.

Um in terms of I myself and real estate developer, I'll get into that later when we go through deliberations, but just like the shape of the property, JV, you know, how long has it been available for?

I guess why you guys identified it, why you guys thought it might it might work for your your business plan.

It's a it's a good question.

And uh it it we actually looked at the project uh a number of years ago, uh looked at the at the site a couple of years ago.

Um ultimately our partner uh which is USA properties, they're another affordable housing developer.

They own 30% of the land.

They were actually able to to uh tie the land up first.

They brought us in to assist because they're based in Sacramento and we're we're Orange County based.

So we entered into a joint venture agreement um and and work with them.

But we we liked it because it uh it gave great access to for the seniors to have access to transportation to medical care to libraries and other community facilities.

We were able to the and and the the project penciled and we were able to uh attract the appropriate funding sources to make the capital structuring work.

Thank you.

All right, if there's no other questions.

Okay, Don.

Charles, have we received any financials at all from Chambury?

Well, we've received the um, because again, we were in early in the process, we've received like the pro formas that they provided for the development of the project, and uh and then the final costs that they um had for the project and everything.

But we haven't received any um I can't recall receiving anything, but I don't think we have any like independent audits that we will typically receive every January or February that will review the prior year.

So this project was completed in late twenty twenty-four during the 24-25 fiscal period.

I I assume that they're gonna uh they're doing in the process of right now doing uh independent financial audit for the fiscal year 24-25.

That's typically how it works.

So we'll get we'll get a uh independent uh audits report per our agreement that um gives us that right to get that report.

And the reason I ask is you know as council member uh Williams said, you know, there's the give and take on the benefits and the detractions of you know uh the exemptions, the property tax is a big deterrent when you look at a revenue source.

The upside is housing seniors that are in need, so there's that dichotomy of like the what's good, what isn't?

I mean, it would be nice just to um be able to just take a look at so you've got a performer, you're a hundred percent occupied.

Listen, I I want this thing to move forward, but you know, we have to be somewhat uh financial stewards to a certain extent, and not to say you don't deserve a vote, but um, okay, what's the question?

Okay, but okay.

Well, there's yeah, okay, yeah.

All right.

All right, is there any more questions?

Okay.

Well, then we gotta stick to the question.

Yeah.

All right.

We're gonna close the open open the public hearing.

Uh at this point.

There are no speakers.

Okay.

Um then we're gonna close the public hearing and council discussion.

Now, Don, go ahead.

What I was saying, mayor is this is a situation where there's there's no financials yet.

Not that they're gonna be dramatically uh compelling because the margins are slim, but you know, we're we're asked to make a financial decision.

We've asked some questions, um, nobody's heartless, but you know, the irony that we might see financials in January when you know here we are at the you know, almost the end of October.

If if we could see something, you know, we're not gonna see a golden egg over here, but to council uh member Williams uh question is five thousand dollars is nominal.

I know you guys you you crunched your numbers and you put a good faith number, and I appreciate I believe it may have been council Councilman McKean that was working with you guys um and raised the simple interest uh rate as well and and we appreciate that.

But it would be nice to know if we had uh some discussions with the board members.

You know, is there not a little bit more money left in that well?

We're not talking about coming up to like our our pilot program over here, payment and loo taxes where they said we'll pay you the full tax amount in our pilot program, and they're a non-profit as well.

Um market rate given.

But um, you know, I'd like to hear what what anybody else might have to say about that.

And again, nobody's heartless up here.

It's just again, can we get a little bit more out of the deal because of what we're giving, you know.

Um so I'd like to kind of discuss that a little bit with the council members.

Uh and that's kind of the idea I was getting at councilman uh Kennedy is uh the possibility of looking at continuing this just so that we could look at this together uh with staff with the developer at uh possibly restructuring this in a way that's more fa favorable for you know our taxpayers and uh our priorities uh as a city.

So just pumping the brakes is not a no, uh, but just taking a look and have that opportunity to receive and and review uh those financials before we make a decisions sort of quickly with our backup against the wall.

Go ahead, Andrew.

Yeah, so I just I mean I just keep going around that number, 188 unsheltered seniors in Huntington Beach.

So ultimately the cost of having these anybody uh in the catastrophic event that this there was a default, the cost of actually that taking care of the you know the community here could be beyond that.

So as we look at those numbers or you want to look at those numbers, I just think I mean this is this is really a no margin game.

I don't think we're gonna like see anything in the financials that present some massive bottom line that's being hidden hidden between the lines.

I think I think it's important we just consider that um as we look at that.

Mayor.

Go ahead.

Yeah, JV, like I touched on it the last segment.

So do you can I can you kind of highlight the property, Don?

If you want to look at this.

Check it out.

So that that what that building, right?

And then the only access is off of beach.

This is Denny's is on the corner, so you have this narrow access point.

So JV, can you kind of walk through the history of the property, how is it identified for high density, and and you know, just the history before this project came about.

Yeah, I mean, since the beach energy specific plan was adopted, and I think even before that, we've had a few projects that were proposed, residential projects that were proposed on the site market rate.

Um, but they were never able to uh the the people that were proposing the project were never able to propose a project that would meet the zoning standards, and so for one reason or another, they didn't move forward with the project or they were denied because they couldn't meet the zoning standards.

These were market rate projects.

You give it an example of zoning standards that they could not meet.

Um they couldn't meet uh like building distance separation setbacks, um building height, be because of the odd shaped lot, it's very narrow frontage on beach boulevard parking.

It's hard to fit all of those um components into uh the project due to the shape of the lot, it's almost looks like a flag lot because you have a very narrow frontage on beach boulevard and then um the the bulk of the developable area is located on the west side of the property.

And then in 2020 when we were dealing with our fifth cycle housing element we were required to identify six sites for um essentially housing that that we had to allow residential affordable housing on and this was one of them.

So this site essentially you couldn't put anything other than um housing and it had to have at least a 20% affordability on it.

So where I'm getting with that is I just want to bring up the history so to council mayor Williams cut comment on property tax wall reforegoing I mean the private sector essentially is in for lack of a better term deem this property almost undevelopable.

I mean what what do you put there right like you can't park it you can't meet setbacks.

So I share the mayor's concern because I am a private sector developer.

I it it goes against my DNA to have taxpayer funded projects however that is the reality that we are in in this in this state and in this country but if those funds were to be used like they are developing a project that the private sector cannot a on in terms of the shape of the property but also B like you cannot develop a you know affordable very low affordable housing project for disabled seniors in the private sector so the gentleman that came up and talked about how thin their performance is it's it's all based on on the tax refinancing the the minimal cash flow um to raise within margins there are they make their money on their development fees but again they're delivering a product that the private sector cannot I understand wanting to get more of a pilot from them but you know I know staff over these last four or five six months have have asked them like what else can you guys give to hold this TEFRA hearing and you know the 5,000 seemed like a heavy lift that was never talked about initially um the affordability covenants going from 60 to 99 I mean that basically just protects this property from continuing to always be affordable to deliver that that product that it was designed to to be built for for affordable seniors that are that have disabilities in some cases and then secondly so that taking it from 60 to 99 and then lastly you know moving the interest rate from three percent to five so Charles can you kind of touch on these like home funds right like we get these home funds money and they can only be used for projects like this correct yeah that's correct the home funds and the um the inclusionary housing funds that was of significantly smaller portion of the package can only be used for housing affordable housing excuse me okay so again I mean the comments we made like if this came to us before this was undeveloped I mean that it might may be a different story but you factor in the the property dynamics the sh the shape the the almost being undevelopable in the private sector couple that with here we are today it's a finished project there's seniors living inside the the units it's it's delivering the service they they want we've gotten three concessions from them the three to five percent in year 20 I mean that's what'd you say four to five million dollars over the life of the loan to the city uh it's just shy of five million right that's a to me that's a big win um all those factors in in play uh looking at it with with open eyes based on the history where we are right now like I will support it because of that um but of course that's just me on one voice but I wanted to share with the colleagues up here kind of the dynamics of what we're looking at because again I am a real estate developer and this site and my opinion cannot be developed in the private sector.

Go ahead.

You know I concur with you s with what you said there Casey I mean it's a flag lot there's no question about it's it's a difficult build.

I guess the sentiment is it seems like on the on the diet up here we get faced with these decisions that it's like it's we gotta know now because you know we're up against the wall and that never feels good.

So you know, you get in that position, you have to ask questions.

Uh at this point, you know, I'm probably gonna have to acquiesce and I'll I'll support the project.

But you know, getting pushed up against time frames because of circumstances that are certainly beyond the council's control is is not a good way to do business, and um I feel like we get put in this position.

In this case, it's built, it's a tough build, you know, private sector passed on it.

Um, I I have to be honest, so I I know you can dig deeper into that balance statement or your balance sheet and find some additional dollars, but if you're gonna say five thousand, it's gonna you know tap you out, we'll leave it at that.

Um, but with that said, uh I have no further questions.

Grace some we did deal with this a while ago on council when this came forward, and one thing we asked was what can we do to benefit the taxpayers out of this?

It was a mistake.

It was what a two month was it a two-month overlap over of was it two months at the TEFRA had expired?

When it was brought to us initially.

I'm not uh honestly I can't remember if it was ever brought formally to the city council, but I could be wrong.

I I just can't remember.

I think it was brought forward to at EDC.

Oh EDC is it EDC?

Okay, so so this was brought forward and but we said okay, what can we do to that would benefit the taxpayers?

And we went back into negotiations.

That was about six months ago.

Um, it was a plot of land that no developer wanted to deal with, they couldn't develop it.

It's been developed into a project that's benefited 43, maybe 44 senior citizens.

There haven't haven't been any issues.

I don't believe we have um chief.

Do you know we've had like police calls out there to that property?

Have there been any issues?

None that I'm aware of.

So we have a great project with neighbors there who have no issue with the project seniors that are being housed, and out of this one time um overlap, we were able to get three concessions for the taxpayers.

Um I do believe that everybody negotiated in good faith, and we are here now, and I am going to support this.

Um, I do think that everybody did everything possible to make sure that we got something back out of it, and at the same time it would still work for the residents.

I cannot get past the idea that we have at least 43, 44 people that this would affect and to that their senior citizens.

I think they deserve peace of mind.

I don't think they should be waiting to see are we going to be able to afford to live here?

Um, I've been in situations where I wasn't certain if I'd have a home.

Other times where I didn't, and it's a horrible feeling, and I am not willing to do that to our senior citizens, so I will be supporting this.

Uh Jim, were the any zoning changes granted to this project for being low income that would not have been granted to uh private uh developers?

This project didn't have to provide as much parking because of the senior com uh aspect of it.

No setbacks from the neighbors, like to the west of a marine.

They met all the setbacks.

It was just the um for the most part, it was the parking.

All right, the access off beach, you said was the only access to the building, but yet that auto park drive is a full access to the parking structure, right?

It's a driveway basically.

Yeah, there is there is other access.

I meant the the there was only street frontage from uh with the narrow area at Beach Boulevard.

And um, but uh if for the jamboree people, how many how many of the parking spots you have seven out in front?

I believe it was in 22 underneath, and how many of those are taken?

You can answer from there, you know.

We still have some parking spaces open.

There are still some how many.

I need your design, but I'm okay.

You don't know.

Um, so no zoning changes.

Uh so it's more like a Z property, not a flag property, because you do have that access if people could drive in from the neighborhood through the back of the building into their parking stall, and but they come through that it's really an alley.

I've been back there, and uh it's yeah, it's more of an alley, not a drive, but it is now uh with that.

And there's seven guests parking out in front, I believe.

Is it gas parking right and staff.

Um with that I just P.

I just want to emphasize that so many tax dollars has gone into this and so many tax dollars are gonna be lost to this I think it was the people don't understand that that loss of tax dollars eats at our survival it's it's killing me I believe me it's not that I'm not sensitive to elderly with disabled elderly or anything but it's goes to people wonder why their street isn't paved why we have cracking pipes or things like that why we have to cut personnel on staff why we don't have enough why we can't hire enough police why we might have to degrade our fire department from a class one to a class two because we're not getting tax dollars and stuff it it all these projects that are very virtuous it there's a limit and it's all costing us and it's killing me it's kind of uh and jambree I'm sure you guys I cannot believe that five grand without any cost of living involved in it but yet your rents increase every year two to four percent but that five thousand isn't uh increasing this whole project it just I think there's room for negotiation or at least more further kind of considerations um I hate to see us make a decision so rashly on this without uh some decision um I would have loved to see our finance commission uh look at this and they have we have some good people on that very experienced eyes on numbers and they might see something that might have been helping all of us so I'd like to see this thing continued.

Well staff tell me this would there be any harm in continuing this for a month so we can maybe let finance commission or at least ask a few more questions and maybe look at a few things I would need to defer the jamboree because I'm not sure where they are in the process of converting to the well that would go back to the I think Don said that we get these we get these come on sir we get these projects at the 1130th hour and told oh yeah hey go ahead make a decision on something that's going to affect your your constituents and your public so much it just kind of it's that doesn't sit well with me either sorry mayor yeah respectfully we under we understand but we are we are at at the end of our our uh available options um so it would be a tremendous hardship and would would cause uh what is the end the our our construction loan period is is uh expiring um as of when well you got a date uh I I can I can get you the I can get you the date I believe it's I believe it's in October this is October yeah yeah the the end of the month we our our construction loan becomes due so why didn't this come earlier why didn't you come with this request back in July when we could have worked out something yeah we do we we we have we were because this deal was our was already structured and and set everything that all the changes that we made had to be approved by all of our capital partners had to go through all the lawyers make sure that that it would still work um so we we went through that process before we finalized and agreed to the to uh all the all the requested changes that we could uh mayor we we brought this back about I've been here help trying to facilitate the project.

I was not here from the beginning uh about four or five months ago.

I was asked to try to help and see.

We brought this back four or five months ago.

We were asked to go revisit it and bring more concessions to the council, so we did.

We work through collaboratively with the staff, and we we brought our very best.

Okay, thank you.

Um, we don't have any more meetings this month, that's what pisses me off may it upsets me that like Don said that we're stuck here making this decision that affects our whole city, and um I don't like it.

I don't like it.

I think there's like I said, you guys can get two for two to four percent raise in rents.

Oh, the calamity, and then you use the soft point.

Oh my gosh, the elderly are gonna hit the streets.

Well, that's just poor plan on you guys in that sense.

The whole the whole, and we're gonna have to pay for it.

Everything is taxpayer, taxpayer this tax on the backs of the taxpayers.

At some point, the system breaks because the taxpayers being demanded upon too much in too many ways.

And as the financial authorities for this city, it hurts to make these decisions, especially without all the information or uh for uh enough scrutiny and this 11 30 kind of technique that I see done too often, I think is gross.

But um, mayor, may I ask a question?

City manager, did was this actually agendized four months ago and brought forward?

I don't recall that maybe you know, I don't recall everything, but was it this was on the agenda before?

This got brought forward to council, um, and or this got um through EDC, and there was discussions, and um, and we and staff was working with them and some council members that had interest in this, and so now this is when it's you know Mr.

Mitchell said it was agendized and it was brought before council, yes or no?

No, okay.

I didn't think so.

No, no, this is it it has not been agendized by the no we didn't agendize it, we brought it back to be agendized, and then it was told to us that we need some more concessions.

So we've been working very diligent with with all parties.

We had no slowness on our part or staff's part, and this was the quickest date that we could get to this meeting point.

So staff's fault that it's coming to us right now with no more meetings, no more consideration dates unless we go past date or call a special meeting.

Is that it?

I'm not aware that either party was slow to the business.

Oh, you just said it's kind of on staff's part.

No, I think we both work, I said collaboratively and very good together, and we brought it back.

Every time he was asked to meet, we did.

Every time we were asked to go back and forth, we did.

So I think it's been about four or five months.

We originally wanted to bring it back, we brought the concessions back, and we're here today.

And I I'm back to why what's the difference?

It you don't have the TEFRA now.

Uh, what's gonna you're saying something's grossly gonna change that's gonna affect your bond?

Um yeah, yeah, that's right.

The the outstanding portion of the bond will be no longer tax exempt, so our lender will not honor the commitment of the of the loan.

Um, so the the there will likely be a renegotiation of of a smaller amount of loan.

Jambry would have to put additional money additional funds into the into the project in order to convert the construction loans.

So this is a decision that's gonna be if we do have to push through this, it's again something else.

The taxpayer on our decision is gonna have to be burned with.

With a firm deadline, why is it coming here uh when we're at the deadline?

I mean, we don't really even know what the deadline is.

It seems like they just kind of threw that one out there.

Uh, October.

What's the deadline?

How are we not here with a deadline knowing exactly what it is?

Sorry, I I I have my project manager who works with the project on a day-to-day basis.

I was asking her for the exact data.

Our construction loan expires October 31st.

Okay, so i is that prudent to have it come to council for the first time with no latitude for us to make any adjustments in it in the ability to maybe um delayed for two weeks.

This is the first time nobody's reached out to me about any TEFRA hearing or jamboree.

I've kind of heard a little bit.

So I'm hearing all this now, and I'm basically told make a decision now, or we lose.

Same.

I don't like that.

We we've been working with diligently with staff and and with council to to address these items as they as they've come up.

As I said, we do have partners, we do have capital partners, we do have lawyers that we have to work through to make sure that we're able to do these things.

We did that as diligently and as quickly as we possibly could.

So I think if I was in your position with so much at risk, I would be telling staff you have to bring this now because we have firm deadlines.

And unless you tell me you did that and they push back and said, No, we're not gonna bring it, then you have more at risk than we do.

Why you wouldn't do that?

Um and basically let me get this straight.

So the negotiation was basically just back and forth.

Can we come up with five grand and go from three percent to five percent?

Is that and go from sixty years to 99 years?

It took you guys five months to make those concessions either way.

Is that what you're saying?

It's not quite how the process went, but but the yes is is the short answer for a large portion of that.

We have to we have to have this approved.

There are a number of bureaucratic capital partners, and and we have to work with under the the agreements that we had already struck that we were now undoing in order to provide the concessions that were requested.

And did you tell them you need to move on these decisions, yay or nay, quicker?

Because we're at a firm deadline where we're and they said, Well, don't worry, just put put it on the council, make them feel the heat.

No, that was that was never done.

My goal is to always work as quickly as possible.

I asked the client, please go as quickly as you can.

And I was checking in, and staff said they were working on the issue.

That's the truth.

And the issue again was working on going for $5,000 a year and three to five and sixty to 99.

That's the the staff was that a difficult decision.

Was what what took five months to to render that decision?

I'm just curious.

So can I just address this?

We started at EDC.

EDC, we presented what the need was, which was Jamboree needed a TEFRA hearing.

Uh the council members on EDC said, Well, what will we get out of it?

And we explained what the TEFRA hearing was, and they said you should go back and try to get something more out of it.

We did start by asking, what about a pilot?

What about what was done on the um market rate assisted living project across the street from the city?

Um that's where we began.

Real quick, Jennifer, please.

What was that month?

I I don't I don't know.

Um, yeah, we we we requested the to to agenda in July.

So uh they start there.

That that was something that cannot be done again with with the financials on Jamboree's end.

It went back and forth.

Some of the EDC council members were also involved in those discussions, and it came to the point where the benefits that were presented tonight were what was ultimately negotiated, which was increasing from 60 to 99 years.

The additional five million close to five million that the city stands to get through the increased interest rate, and then the additional close to 500,000 that the city will get with the annual fees.

Um that did take some time to go back and forth.

We were fortunate to work um again with Jamboree's team, the staff team, and also the council members on EDC that helped to bring all that together that did take some time.

Jamboree had to go back as the Jamboree representatives mentioned.

They have to go back and talk to all of their partners and their count uh lawyers basically.

And then we had to draft up all of the various agreements um through our city attorney's office, the amendments to those agreements.

Thank you.

Is there any restructuring capabilities after the 31st?

Go back to tax exempt if we uh work out something different.

Is there you guys might get stung for a month or so, but if we come back in November, uh, and after some diligent talks or considerations on some other funding or some other, because I have heartache five grand a five grand a year.

That is, that is just as yeah that these as good point, maybe I think you know, Eaton Crow for maybe a month or two, you know, before we restructure might just be the way forward.

I uh again, we've we've taken a lot of looks at this.

These deals uh are are extraordinarily thinly underwritten.

That's that's the the the structure that that affordable housing works with works within um we we've uh talked to all of our partners we've we've looked at the finances we we we just do not have any any additional room available on this we have you know have you looked into and asked about that extending into no you're asking us to extend something why don't you ask them that you guys are in negotiations and it's quite favorable I don't care what you tell them but to get that extension.

We uh asked in July and the staff then said deal with the council representative and any people and work with us collaboratively to bring more so we did start in July we couldn't get it done any quicker and then we were told that this was a good meeting of the minds at what they came up with and staff came up with and so to present it.

With did you with the who you would be doing the bond issue or who has control of the bonds that you're talking about would have to basically almost penalize you for not getting the TAFRA have you talked to them about their possible getting the extension we've already we've already utilized the extensions that were available to us.

So the you've gotten others yes yes covet wrecked you no there was no COVID when we started this process.

Well but the extensions that we we've had to use a number of extensions on the on the financing because of COVID because the construction was delayed and because we've we as we've been trying to to work out this this TEFRA extension.

So we've we've exhausted all of our extensions.

And are we concerned about something happening that as you guys said historically has never happened before have to default.

Yeah it's it's a it's a a very real possibility I quite frankly what would happen is is as we we've discussed our lender would reduce the amount of perm loan uh jambry would have to make a loan to the to the the project in order to convert to permanent financing we're good stewards we've already essentially because of the extensions and because of the the uh the delays we've already deferred the entirety of our developer fee so we have we have not made any money off of this project we have zero zero dollars in sorry I take that back we've we've uh collected about three hundred thousand dollars in developer fee um that's what we'll collect for the for the entirety of our of our capital structuring um so we we would have to put additional funds in to convert to construction financing to pay out to convert to perm financing to pay off our construction loan um we would do that because we're good stewards it would end it would cost us money we would not be able to sustain that over time um so that it would there is a a higher risk of default which is but would you be able to go go back and get the TAFRA if you you you kind of once we once we convert with the the kind of ship has sailed once we convert to to permanent financing and we have to do that because our construction loan is expiring so if you had to make up a a shortfall chamboree while this was sorted out you would never be able to go back to tax uh tax exempt bonds is that what you're saying yeah what's once the bonds are issued they're they're issued whether they're taxable or tax exempt.

Okay so that so we wouldn't be and once once with the we issue it with the tax exemption we can't increase them we couldn't go back and increase them.

Right but rather than seeking new financing today's what October 21st when the next meeting's gonna be November 4th or whatever it is I don't know what I don't know my calendar two weeks from now are you telling me that if you had to write a check for a couple of days until we sorted this out that uh you're gonna lose all your status well we our our construction loan would be we would be in default in our on our construction yeah well your special services not going to foreclose on you five days in into default I can guarantee that is something else going to happen you yeah you'll be in default your special services not coming for your asset I can assure you of that.

Oh they come for the tax credits okay so uh is that 100% definitive?

There's no going back.

If you're yeah, we've we've we've we've reached the the the end of our extension.

I mean I just can't see why you guys were not pounding the tables to say let's get this agendized uh you know uh instead of you know five days before you know nine days before it expires it's just mind-boggling to me so we we have been pressing we uh again we we thought we had come to terms.

Um we were we were uh pressing to to get agenda is as soon as possible.

Staff told us this was the the first available date.

It worked within our our extension.

We didn't we didn't assume that we did not have uh a deal.

We've we've completed the project, we've met all of our agreements, we've renegotiated uh and made concessions after the deal was struck, after the deal was completed, after all of our financing was set.

We've we've gone above and beyond.

We didn't uh imagine that that we would uh would be in a position where where we we we knew that the council obviously has the authority, uh, but we thought that we had kind of come to agreements.

We've we've met and exceeded everything that we've said that we would do.

Oh, gang, I I suggest we maybe go on a little fact-finding you know, mission.

My suggestion would be to continue this, not necessarily to the next city council meeting because worst case scenario, if they really are up against an end of the month deadline, perhaps we can do a special meeting if we really needed to in order to make this happen.

But I think we need to do a little bit of discovery.

Um, many of us council members, the very first time I ever heard or found out about any of this is when it was posted on the agenda.

I think that's the same for many of the other council members that are up here, and it it just seems like you know, because of other people's missteps and their inabilities to keep everything within a three-year term that was originally given and then not bringing it up until a couple months after the expiration, and here we are, you know, back up against the wall.

We're being forced to put our names on something that really is counter to what we campaigned on and the representative you know votes uh that we received.

And so I would just like to take a look at this a little bit more with staff, with the developer.

There's already been some suggested restructuring.

I'd like to have a say in some of that restructuring and take a look at it.

And I have a hard time believing that, you know, I mean, entering into a covenant for 99 years saying this will always remain the same way.

I'm concerned about locking in something like that and have a hard time believing that uh private development can't come in and find a way to make that property profitable in such a way sometime in the future to where we actually are collecting property tax and not being a burden on our citizens anymore because our taxpayers are subsidizing this.

And they're the what it was the term they're the secondary loan or the uh subordinate loans.

Yeah, we're we're way down the line on that.

I just man, I've got a lot of heartache on that.

Yeah, I would ask my colleagues.

I mean, I fully appreciate all of course everything you guys have said, but like what's the extra time gonna do?

I mean, I mean they're telling you straight up that like they're tapped.

So I mean, unless you just don't believe them, I'm I'm just saying like what what would we what would we accomplish?

Well, I mean, uh if we had the ability to call a special meeting next week before the expiring um deadline of the construction loan and sit down and you know, if we were to get, you know, this is facetious, one penny more than what they said today when we're tapped, isn't truly truly a statement.

I mean, I think with your backs up against the wall, uh, you know, uh your your balance sheet allows you to make a little bit of movement, I would imagine.

You guys are this is a nonprofit the bottom line is we're not gonna be asking for the moon, but maybe maybe we would like to see is there not room for a uh 50 basis points cost per cost per you know CPI on the five grand.

Is there so uh uh as I mentioned, we this this development because of COVID, because of the delays associated with it.

Has this project has cost jambery money?

Our board has already provided a bridge loan to get us to to this point.

So we have uh a couple million dollars in cash that we've already uh put into the project.

We have deferred nearly the entirety of our developer fee.

We've deferred a large portion of our general contractor fee.

We've worked on this project diligently for five years.

We've delivered what we said we were gonna do.

Our board came out of pocket to to bridge the that loan.

We we have absolutely stepped up at every portion of this project to deliver what we agreed with the city that we would deliver.

We have delivered what we think is an asset to the community.

Yes, it's not uh exempt, yes, it is exempt from property taxes, but this is uh something that's keeping 43 people off the streets and and and making sure that they stay off the streets and providing them them home and care.

We the this project has already cost us millions of dollars.

Five years of of our staff time, five years of our general contractor's time, um, and and we have collected very, very little out of it.

We do not have any money uh to bring to the table.

You understand that we have breaking points too, and that's what's killing me right now is all this is just costing costing.

We're not gonna at some point we're gonna have to tell our employees.

Sorry, we can't give you a raise.

Sorry, we're gonna have to, you know, maybe replace you with somebody not as well because you're going off to make more money out of another city who hasn't reached these kind of deals.

And another point too that that's why I say the state should stay the hell out of local government and let us control things a little more.

Um, really a question for you, Trav.

Why has this waited until this point?

Knowing that this if they our staff knew it, why didn't we do this back in August?

So we did have time to like hash it out with all of us in a proper discussion and maybe two uh that yes um staff did reach out to all the council members on this project earlier.

We didn't bring it to it wasn't brought to a council meeting to inform you, and unfortunately, this is where we are at this point today, so um I think um I think we're ready to you decide to have a meeting next week, decide what if you want to make a vote tonight.

I think um well we'll decide that, but we got to decide whether we're gonna I mean find out the route of how we got here too, though that's another issue.

But Chad, you got anything else?

All right, it's gonna be a substitute motion.

Yeah, I'm ready to make a substitute motion if that's okay.

No motion's been made yet.

Recommendation, nobody's made the motion though.

It's a recommendation.

Okay.

So, mayor, if I could make a motion, uh, like to move to continue item 10 uh to allow additional time for staff, the developer, and council to explore potential restructuring of the agreement terms in a way that better protects Huntington Beach taxpayers and aligns with our current priorities.

Can you put a time frame on that?

Like next week, you know.

If we are going to do that, if I'm gonna if if I'm gonna second that, in all fairness, we have to get to a jumping off point before their self or the proposed deadline of October 31st.

So, you know, to be fair to all parties, we should make sure that we can do that.

So if you can point, uh so uh I would revise it to say I move to continue item 10 uh to allow additional time for staff, the developer, and council to explore potential restructuring of the agreement terms in a way that better protects high-to-beach taxpayers and aligns with our current uh priorities.

Uh and the meeting should be scheduled no later than October.

Next Tuesday.

Yeah.

Okay.

By next Tuesday, which would be 20th, the 28th.

Chad, just for the public to and for the council, so we can't obviously come to collective concurrence with more than three of you.

So when you say council, it's gonna have to be less than less than a quorum.

I'm just looking for the opportunity for us to be able to meet uh, you know, ones, twos, and threes with the developers and and staff.

I would second that motion.

Even if we end up at the same place one week from now, I will feel a lot better that at least we had an opportunity.

Again, I've said this before this being asked to vote on something has financial um benefit or rep or or negatives, you know, at the witching hours.

Just it's it doesn't sell set well with me.

So I will second that motion and hopefully we can pass it.

Uh we can meet with the developer even if we make no headway, we will vote again next week or vote next week.

Second the motion, all right.

For clarification purposes, to continue item number 10, and I will summarize um to provide additional time for restructuring uh to align with current priorities.

Okay.

Also, also uh parliamentarian, do we need to reopen and continue the public hearing?

No, you can reopen the public hearing at the next meeting.

Do we won't have to refile and all that within we just continue this public hearing?

Is it notice, Jen?

It's been noticed for this, but within a week, is that enough time?

I I think we just can just um continue it to a date certain and therefore now have to renot this.

Yeah, we reopen and we continue the public hearing until uh the 28th.

Certain.

Isn't that the way it goes?

If you'd like to reopen the public hearing and do it that way, you can, but I don't believe it's necessary.

I'm just trying to do it the right way.

So if we don't need to open the public hearing, that's fine.

Since it's not going to cause any additional delay, go ahead and reopen the public hearing and then you can.

All right.

Yes.

We will be able to be able to continue without renoting it because on our end, it's 10 days.

Okay.

Yeah, I get I'll I'm gonna reopening it and continue until the 28th.

Okay.

Well, there's a motion on the table.

Yeah, but we just did that.

Okay, going to call the roll.

The whole thing is okay.

We just have a summary.

Okay.

Councilman Twine.

No.

Councilman Kennedy.

Yes.

Mayor Pro Tem McKeon.

No.

Mayor Burns.

Yes.

Councilwoman Vandermark.

No.

Councilman Gruel.

I'm in favor of extending this the tax exempt status, but if we need another week to discuss this, then I'm a yes on that.

Councilman Williams.

Yes.

So motion passes.

Four.

Yes.

Three.

No.

To continue.

Date certain October 28th.

Okay, item number 11.

Approved for introduction ordinance number 4342 prohibiting the sale and distribution of nitrous oxide.

Staff, please introduce the report.

Good evening, council.

I apologize for being back again.

We have another ordinance for your consideration.

At the October 7th meeting, Council members Vandermark, Twining, and Kennedy proposed a us to find an ordinance prohibiting the sale and distribution of nitrous oxide within Huntington Beach.

Currently, it is widely available.

There's no point of sale restrictions for nitrous oxide.

It is sold as a culinary use.

Nitrous oxide is very dangerous.

There's many short-term effects.

You can have nausea blackouts, impaired motor control, disorientation, and long-term effects.

You can have nerve damage, paralysis, and even death.

The Huntington Beach Police Department has seen a large increase in nitrous oxide related arrests since 2023.

We had 28 arrests in 2023, and we're on pace for 152 arrests this year.

Calls of service that involved nitrous oxide.

There currently is a penal code.

Section 381 of the penal code, and it says possession of nitroco nitrous oxide for intoxication.

The issue is here, you must show possession with the intent to use it illegally.

And that's there's kind of a loophole that I think Councilmember Gruhl pointed out last meeting where it is being sold as a cooking product.

It's actually being marketed to children.

They have funny names for it, laughing gas, knox, whippets, it's flavors are being added to it, it.

It's easily accessible to a lot of people in a lot of different places.

And Councilman Guru, please correct me if I'm wrong.

A normal commercial chef would not buy nitrous oxide from a smoke shop.

Correct.

Okay.

Just want to make sure I'm I'm accurate on that.

This ordinance would prohibit the sale of this by these smoke shops, but it there are several exceptions to it.

Commercial use for food preparation would be an exception.

Use in a medical or a dentistry setting would be an exception.

Use in a to improve the performance of a vehicle, there is an exception for that.

And also if it is provided by a pharmacist.

What we are targeting is the smoke shops who sell these little cans, these little whippets of nitrous oxide to juveniles who then use it and have lots of problems in their life.

They huff it and have issues.

Several years ago, we had a young lady huff something and then fall into the little lake right across the street here and pass away.

So it is very, very dangerous.

So staff came up with the ordinance to do this, and our recommended action is you move this ordinance for a second reading at the November 4th, 2025 council meeting.

Are there any questions?

Are there size uh so the commercial people can still buy it, whether it be wherever they buy it?

Can they I don't want to make it illegal for them to be able to buy, but I don't know the quantity they buy it at a time.

Do they buy it uh you know two gallon, five gallon at a time, because I hate to see uh unless there's a restriction like at I'm sure it's like two ounce bottles of it at uh the smoke shops and gas stations, sell little teeny canisters of it at a commercial place.

You would buy much longer can that's what I mean the words permit it by commercial use and size purchase and illegal on the smaller version to sell it with this ordinance to sell it commercially, you would have to be a licensed person who would sell things to a restaurant or such.

You couldn't not the smoke shops, not the head shops, not places like that.

And this is this has been around.

God, I remember one of yeah, it's been around forever.

That is correct.

There's been different names for it, has gone up and down in popularity.

Uh, we have seen a surge in the last five years, yeah.

I would say.

I mean, back when you were a police officer in Long Beach, I'm sure there were people that were huffing different things.

Oh, the raves.

When I don't know, do they still have raves these days?

I mean, when they had raves, it was all over the place.

I mean, it was crazy.

And the way we find it is it's it's long overdue to be illegal, is what I'm saying.

We find it in balloons.

You would fill a balloon full of the nitrous oxide and then you would huff it.

And that's just for some reason it is very popular right now, and it's very available to almost everybody in the city.

So if somebody uh that was not licensed in the food, uh, were in possession of one of these commercial size canisters uh would that be subjected distribu uh quantity for distribution?

Well, they'd equip.

I mean, if they had a few bags of balloons next to it, yeah.

I mean, you got your PC for it.

Yeah, our special investigations bureau would actually take the lead on this.

We plan on much like we did with Kratom, we'll send a letter to all the distributors in Huntington Beach letting them know there's a new ordinance, and then we will do undercover operations to see if people still sell still sell it.

Wouldn't a fence be a misdemeanor first time?

Okay, it would be a city ordinance, so it's it would be a misdemeanor.

I'll move the recommended action.

I'll second and thank you for working so quickly to get this done.

Anybody else?

Call the roll, please.

Councilman Twine, yes.

Councilman Kennedy, yes, Mayor Pro Tem McKeon?

Yes, Mayor Burns.

Hi.

Councilwoman Vandermark, yes.

Councilman Groul?

Yes, Councilman Williams, yes, motion passes seven zero.

Thank you.

All right, move on to council member items number twelve.

Yes.

Mayor Burns.

I have to read the ordinance.

Oh, I'm sorry.

We always skip that.

I'd like to read the ordinance for the ordinance title for the record.

Ordinance number four three four two, an ordinance of the city council of the city of Huntington Beach, adding a new chapter 9.94 entitled Prohibition on Sale or Distribution of Nitrous Oxide to the Title Nine of the Huntington Beach Municipal Code to establish regulations prohibiting the unlawful sale or distribution of nitrous oxide in the city.

Alright, thank you.

Okay, council member items number 12.

Uh submitted by myself and Councilman Butch Twining.

Invitation to Orange County Register of Voters to present at a Huntington Beach City Council meeting.

Would have been nice to get him in here before the elections, but uh that's just not gonna work.

He's probably very busy right now.

So I I took the the phone calls and uh all the emails to heart and uh uh asked Mayor Burns if he wanted co-sponsor uh an item with me and instruct our staff to invite Mr.

Page to a future meeting here and also uh look forward to going and taking a tour of the R you know of the Orange County Register Voters Office uh with you know whatever other council members want to go.

I don't think I'm gonna go with uh Protect HB.

I appreciate their uh invitation, but uh I think I'll go on my own.

Thank you very much.

That's it.

Thank you.

Uh you want to make a motion?

Yeah, I make a motion to uh uh approve item number 12.

I mean actually item number you know uh uh 25830, item number 12, uh, to uh invite Bob Page, the ROV.

All right, second.

Any anybody?

All right, call roll, please.

Councilman Twine?

Yes, Councilman Kennedy, yes, Mayor Pro Tem McKean, yes, Mayor Burns?

Aye.

Councilwoman Vandermark?

Yes, Councilman Garul, yes, and also Butch, I I'll go over there with you, and I would love to go with Protect HB as well.

Councilman Williams, yes, motion passes seven zero, all right.

Would any uh council member like to add any any new business to the next agenda?

Do we have a meeting next Tuesday?

We do next regularly scheduled meeting of the Huntington Beach City Council Public Financing Authority is Tuesday, November 4th, 2025, here at the Civic Center.

But the special meeting will be uh October 28th at what anybody got a time request?

Four.

Please.

And with that, I'll make the motion to uh adjourn.

Second, adjourn.