Huntington Beach City Council/Public Financing Authority Meeting - September 1, 2026

The Huntington Beach City Council/Public Financing Authority held a regular meeting on Tuesday, September 1, 2026, beginning at 3:30 PM with a closed session and reconvening at 6:00 PM for the regular session. The meeting included discussions on legislative advocacy contracts, the Edison Park design phase, the America 250 plaque, a financial review of the proposed Police Officers Association (POA) Memorandum of Understanding (MOU), and a final vote on the MOU. Public comments were heavily focused on police staffing, compensation, and fiscal concerns.

Closed Session

• The city attorney reported no action from closed session.

Consent Calendar

• Items 16-24 were voted on as a block, with items 17, 19, and 22 pulled for separate discussion. The remaining items (16, 18, 20, 21, 23, 24) passed unanimously (7-0). These included: approval of minutes, intergovernmental relations committee contracts (deferred to item 17), Downtown Business Improvement District annual report, Edison Park reconfiguration design contract (deferred to item 19), Sons of the American Revolution memorial bench, vehicle and traffic ordinances, sales tax audit contract (deferred to item 22), rejection of bids for Old Pirate Drive water well, and the OCTA traffic signal synchronization agreement.

Public Comments & Testimony

• Police Officers Association (POA) MOU Support: Multiple Huntington Beach Police Department officers (including Sgt. Sean McDonald, Sgt. William Brownley, Bernard Atkins, Det. Reed Parker, Det. Zach Pricer, Officer Cole Swain, Officer Tony, Officer Danny Evans, Officer Luis Castillo, Officer Tommy Higgs, Officer Brennan Laraba, Det. Aaron Etchity, Officer Jason) spoke in favor of the proposed POA MOU. They highlighted recruitment and retention challenges, noting that HBPD has approximately 188 working officers out of 211 funded positions (down from 224), that officers rank 12th in compensation among Orange County agencies, and that forced overtime and burnout are increasing. They argued the contract would improve competitiveness and stabilize staffing.
• POA MOU Opposition: Resident Peggy Hepler opposed the 17% pay raise over three years, citing the city's structural deficit of over $15 million and warning of potential bankruptcy. Resident Roger also opposed, calling the raise excessive and noting high pension benefits.
• Edison Park Support: Several members of the Edison Park Community Group (Nancy Bukos, Tony Riccobono, Ding Joe Curry) expressed strong support for agenda item 19, praising the selection of RRM Design Group and the inclusion of community-preferred design elements, particularly the involvement of landscape architect Max Moriyama.
• America 250 Plaque: Resident Aimory Hansen spoke in favor of the plaque honoring America's semiquincentennial.
• Other Comments: A resident criticized the city's use of reserve funds for operational expenses. Another speaker questioned the city's compliance with a Public Records Act request and lawsuit. A speaker expressed concern about new offshore oil drilling and suggested selling police helicopters for drones. A speaker criticized council decisions on the library, the Symphony of Flowers, and lawsuits. A speaker discussed the city's financial mismanagement and urged fiscal discipline.

Discussion Items

Item 17: Legislative Advocacy Contracts (Kahn, Soares and Conway LLP; Stapleton & Associates)

• Councilmember Gruel and others questioned the value of the two lobbying contracts totaling $504,000 over three years. Staff (Shannon) explained the firms provide legislative monitoring, advocacy, and help secure federal/state grants, citing $850,000 in recent grant funding for the navigation center. Some councilmembers proposed a one-year contract with options, but after debate, a motion passed (6-1, with Councilman Williams opposed) to approve three-year pricing with a unilateral right to exit after two years, contingent on vendor agreement. The item was continued to a future meeting for final execution.

Item 19: Edison Park Reconfiguration Design Contract

• Councilmember Twining questioned the $1.5 million contract (including $500,000 amendment) for design and construction documents. Staff clarified that the total cost for the design phase is approximately $1.37 million, funded by Quimby, DIF, and AES funds (not the general fund). The design includes community input at 30%, 60%, and 90% phases, an arborist report, and engineering studies. Council approved the motion unanimously (7-0).

Item 22: Sales and Use Tax Audit Services (HdL)

• Councilwoman Van Der Mark clarified that the contract is for monitoring and auditing sales tax allocations, not for increasing taxes. The base cost is $14,000/year plus contingent fees on recovered revenue. A motion to strike language in the contract that could be misinterpreted as supporting a tax increase passed unanimously (7-0).

Item 25: America 250 Plaque at Pier Plaza

• Staff presented two design options (sandblasted vs. laser-engraved). Council debated whether to include specific veteran names (e.g., Chris Carr) or a general statement honoring all veterans. Councilman Kennedy proposed removing council names and using the phrase “America’s veterans, past, present, and future, forever America’s heroes.” A motion to proceed with a revised design using this inclusive language and bring back final approval passed 5-2 (Councilmembers Gruel and Williams opposed, preferring to retain specific veteran names).

Item 26: Finance Commission Subcommittee Report on POA MOU & Long-Range Financial Projections

• CFO Zach Zithisakthanakul and staff presented a 10-year financial forecast, showing structural deficits even with 5% salary attrition. Key points:
  • Baseline scenario shows deficits growing from ~$10M in FY26-27 to ~$75M by FY35-36.
  • The POA MOU adds ~$2.7M in year one, escalating to ~$7.5M annually by year 10.
  • The city has ~$99M in general fund reserves (3.64 months of expenditures), above the GFOA benchmark of 2 months.
  • Staff emphasized the forecast is a planning tool, not a prediction of insolvency, and the city has historically managed deficits through hiring freezes and revenue enhancements.
• Council debated the projections: Councilman Kennedy expressed concern that cumulative deficits would deplete reserves, while Councilman Twining noted that the MOU cost is relatively small compared to overall deficits. The item was received and filed unanimously (7-0).

Item 27: Approval of POA MOU (July 1, 2026 – June 30, 2029)

• Staff presented the MOU with 8%, 4%, and 5% salary increases in each year, plus increased medical contributions. The total cost is ~$19.5 million over three years, with a $2.7 million appropriation from general fund reserves for FY26-27.
• Council members debated: Supporters (Twining, Van Der Mark, Burns, Williams) argued the contract is essential for recruitment and retention, and that public safety is the city’s top priority. Opponents (Gruel, Kennedy, McKeon) cited fiscal unsustainability, noting that salary growth outpaces revenue growth and the city cannot afford the increases without raising taxes or cutting services.
• The motion passed 4-3 (Gruel, Kennedy, McKeon opposed; Twining, Burns, Van Der Mark, Williams in favor).

Key Outcomes

• Consent Calendar: Items 16, 18, 20, 21, 23, 24 passed 7-0.
• Item 17 (Legislative Advocacy): Approved in concept (6-1) with directive to negotiate three-year contracts including a unilateral exit clause after two years; final execution to return.
• Item 19 (Edison Park Design): Approved 7-0.
• Item 22 (Sales Tax Audit): Approved 7-0 with language amendment.
• Item 25 (America 250 Plaque): Approved direction to staff to revise design with inclusive veteran language and remove council names; final approval at a later meeting (5-2).
• Item 26 (Finance Report): Received and filed 7-0.
• Item 27 (POA MOU): Approved 4-3, appropriating $2.7 million from general fund reserves for FY26-27.
• Next Meeting: Scheduled for September 15, 2026.