Minutes City Council/Public Financing Authority City of Huntington Beach Monday, June 17, 2013 4:00 PM — Study Session B-8 6:00 PM - Regular Meeting Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 An audio recording of the 4:00 PM portion, and a video recording of the 6:00 PM portion of this meeting, is on file in the Office of the City Clerk and is archived at www.surfcitv-hb.orq/qovernment/aqendas/ 4:00 PM — Room B-8 CALL TO ORDER - 4:05 PM ROLL CALL Present: (cid:9) Shaw, Harper, Sullivan, Boardman, Carchio, Hardy, and Katapodis Absent: (cid:9) None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Joan Flynn announced the following supplemental communications that were received by her office following distribution of the Council agenda packet: Study Session #1 PowerPoint presentation submitted by Bob Hall, Assistant City Manager, dated June 17, 2013, entitled Joint Study Session, City Council, Community Development Block Grant. Study Session #2 PowerPoint presentation submitted by Travis Hopkins, Director of Public Works, dated June 17, 2013, entitled Water Budget Rate Study. PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) - None. STUDY SESSION 1. (cid:9) Three members of the Citizen Participation Advisory Board (CPAB) and the City Council reviewed recommendations for the 2013/2014 Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Council/ PFA Regular Minutes June 17, 2013 Page 2 of 15 CPAB Members Present: Peter Andres (Chair), Raisa Barkley and Robert Schwenk (no quorum of the CPAB Board) Economic Development Project Manager Simone Slifman presented a PowerPoint dated June 17, 2013 and entitled Joint Study Session - City Council / Community Development Block Grant, that included the following titled slides: HUD Allocation, CDBG Allocation Process, CPAB Recommendations (Public Services: 15% maximum of allocation; Public Improvements; Administration/Housing/Other), 2013/14 Allocation: HOME, and Next Steps. Councilmember Carchio and Manager Slifman discussed what CSP received in funding last fiscal year, and how Police Department grants are providing funds to them this fiscal year. Councilmember Carchio voiced concerns about Senior Outreach and Project Self Sufficiency programs being reduced this fiscal year by $2,000, opining that the City should consider applying noted reductions to the Children's Bureau whose budget includes a large Director salary. Deputy Economic Development Director Kellee Fritzal explained that City funding is not used for salaries. Mayor Boardman discussed what is being recommended to fund the Oakview Community Center. Councilmember Shaw expressed his pleasure with the report and the CPAB member's efforts. 2. (cid:9) Staff presented the results of an allocation-based conservation water rate study Public Works Director Travis Hopkins provided a PowerPoint presentation entitled Water Budget Rate Study, that included the following titled slides: Agenda, Background of the Study, Rate Structures in Orange County, Huntington Beach Rate, HB Uniform Rate vs. Water Budget, What is a Water Budget?, Conservation & Efficiency, Water Budget Allocation, Factors to Consider, Comparisons of WB Rate Structure, Study Status, Justification of Tiered Rates, Rate Alternative Options, Customer Impacts, Implementation, Council Direction, and Discussion. Councilmember Carchio and Director Hopkins discussed differences between rate structures (single family resident based on property/landscape size/ number of residents; commercial; multi-family). Councilmember Sullivan inquired, and Director Hopkins explained why multi-family tiered rates were not configured but could be developed. Councilmember Hardy and Director Hopkins discussed the potential for variances applied on properties with large square footage landscaped areas Councilmember Shaw and Director Hopkins discussed how large-staffed agencies such as the Irvine Ranch Water District (IRWD) have the resources (staff) necessary to allow and process variances. Councilmember Carchio and Director Hopkins discussed the amount of money potentially lost in fee reductions for single family residential, and also the potential impacts of desalinated water. Councilmember Hardy, Director Hopkins and Consultant Sanjay Gaur, Raftelis Financial Council/ PFA Regular Minutes June 17, 2013 Page 3 of 15 Consultants, discussed incentive results between hybrid versus full-budget rate structures. Mayor Boardman and Director Hopkins discussed actual water consumption figures. Councilmember Hardy voiced support for the four-tier (full) water budget structure. Councilmember Sullivan voiced support for a four-tier structure. Mayor Pro Tenn Harper was skeptical of complicated rate structures, stating how it is the City's responsibility to respond to water demand. Councilmember Shaw voiced support for a four-tier structure, and asked staff to ensure that recommendations made by the Public Works Commission were taken into account Mayor Boardman voiced support for conservation rates and flexibility. RECESS TO CLOSED SESSION A motion was made by Carchio, second Hardy to recess to Closed Session on items 3-6. The motion carried by the following vote: (cid:9) AYES: Shaw, Harper, Sullivan, Boardman, Carchio, Hardy, and Katapodis (cid:9) NOES: None CLOSED SESSION 3. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuits [and potential lawsuits]: Lydia Boynton, et aL v. City of Huntington Beach, Orange County Superior Court Case No. 30-2012-00570739. In this case, Plaintiff claims she tripped and fell in the City's Banning Branch Library parking lot on Banning Avenue. 4. Pursuant to Government Code § 54956.9(d)(4), the City Council recessed into Closed Session to confer with the City Attorney regarding: Claim For Money or Damages Against The County Of Orange (Pursuant to Govt. Code section 910 et seq.) regarding County of Orange Audit Controller's overcharge to the City of Huntington Beach of property tax administration fees. 5. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuits [and potential lawsuits]: Mohoff/Anderson v. City of Huntington Beach, et al. Orange County Superior Court Case No. 30-2012 00541748. In this case, Police responded to Plaintiffs' residence on a neighbor's complaint of reckless driving. Police attempted to issue a citation for violation of noise ordinance. Plaintiffs resisted and were arrested. 6. Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuits [and potential lawsuits]: Anita J. Newman v. City of Huntington Beach, Orange County Superior Court Case No. 30-2010-00405526. In this case, a bicyclist claims she was hit by a parking control gate near the Huntington Beach Lifeguard Headquarters. Council/ PFA Regular Minutes June 17, 2013 Page 4 of 15 6:00 PM — COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING CLOSED SESSION REPORT BY CITY ATTORNEY City Attorney Jennifer McGrath reported that on Monday, June 17, 2013, the City Council convened in closed session to discuss the matter of Claim For Money or Damages Against The County of Orange (Pursuant to Govt. Code section 910 et seq.) regarding County of Orange Audit Controller's overcharge to the City of Huntington Beach of property tax administration fees (PTA F). By a vote of 7-0, the Council voted in closed session to accept a onetime payment from the County in the amount of $1,019,414.00 as settlement for claims by the City against the County for over-collecting PTAF. PLEDGE OF ALLEGIANCE — Mayor Boardman INVOCATION - Led by Father Christian Mondor of the Huntington Beach Interfaith Council In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. ROLL CALL Present: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis Absent: None AWARDS AND PRESENTATIONS Presentation - Mayor Boardman called on Coach Bob Marshall from Marina High School Baseball, and the team, to receive commendations for their achievement to CIF. Mayor Boardman listed the team's accomplishments, congratulated them for their achievements and presented them with certificates of commendation. Coach Bob Marshall commented on the changes in sports and on the efforts of members of the team, noting that many will continue to play in the future. He reported that Jake Bowers will be playing for the San Diego Padres and commended team members for their accomplishments. Presentation - Mayor Boardman called on Coach Pazanti from the Huntington Beach High School Volleyball Team and team members, to receive commendations for their CIF Championship. Mayor Boardman listed the team's accomplishments, congratulated them for their achievements and presented them with certificates of commendation. Council/ PFA Regular Minutes June 17, 2013 Page 5 of 15 Coach Pazanti expressed his pride in the team and their accomplishments and commended them for their efforts. Councilmember Carchio reported that Coach Pazanti was recently recognized as the Orange County Coach of the Year and that the team members are also the California State Champions. He added that the Player of the Year was Matt Butler of Huntington Beach High School and that he, along with Andrew Tenbrink and TJ DeFalco were CIF Players of the Year. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) - None PUBLIC COMMENTS (3 Minute Time Limit) (The number (hh:mm:ss) following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcitv-hblorg/government/agendas/). Mayor Boardman opened the Public Comments portion of the meeting. Leslie Gilson, Park Restoration Coordinator, presented a video on the benefits of trees, renovation and replanting efforts by the City, attracting butterflies and tile work installed at Gibbs Park. Norma Brandell Gibbs was interviewed within the video and spoke of "blooming where you are planted" and making things better for the community and future generations. It was noted that as do butterflies, the park has made a metamorphosis. Ms. Gilson thanked the City for its partnership over the years and commented on the difference the project has made to the community through participation in events, memorial trees and their education programs. She announced the 5th Annual Monarch Magic event on September 15, 2013. (00:19:32) Jean Nagy, President of the Huntington Beach Tree Society, expressed her appreciation to the City Council, staff, volunteers and sponsors for participating in the project. She thanked the City for its designation of "Tree City USA" and commented positively on beginning operation of the water truck to water the trees. She reported that the next project is landscape rehabilitation of the Shipley Nature Center and commented on donations that have been received towards that goal. She encouraged additional donations to the HB Tree Society. (00:23:43) Mayor Boardman expressed her appreciation for their efforts and work. Barbara Haynes, Chair for the Historic Resources Board, reported on the process to create the wording for the plaque for Triangle Park. She acknowledged approval by Community Services and asked that Council approve it as well. (00:26:05) Maura Van Strien addressed changes in population and commented on those who live in manufactured homes, specifically, seniors. She reported challenges with new corporate management at Rancho Huntington Senior Park relative to requiring homeowners to sign a long- term lease, increased rental fees and the possibility of turning the senior park into a family park. She wondered regarding a twenty-five year plan for senior housing in the City and whether seniors are included in the Master Plan. She referenced legislation by other cities to preserve senior mobile home parks and asked Council to be proactive and enact similar legislation in Huntington Beach. (00:26:38) Council/ PFA Regular Minutes June 17, 2013 Page 6 of 15 Bill Waddington, Orange County Curling Club (OCCC), presented information on the sport, the club, members, venue, interest in and benefits of the sport. He addressed bonspiels (tournaments) and announced an upcoming bonspiel on June 21st through 23rd hosted by the OCCC. He thanked the City for its support and encouraged the public to participate and attend. (00:29:50) Misha Houser, Merchandise Chair of the Fundraising Committee for OCCC, stated that persons with all abilities are welcomed to participate in the sport and encouraged the public to attend and participate. (00:32:50) There being no others wishing to address Council, Mayor Boardman closed the Public Comments portion of the meeting. COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS AND ALL AB 1234 DISCLOSURE REPORTING Councilmember Hardy reported attending the League of California Cities Environmental Quality meeting in Sacramento on Friday, June 14, 2013. Councilmember Sullivan reported Chairing the recent meeting of the Orange County Senior Citizens Advisory Committee. Councilmember Carchio reported attending the League of California Cities Policy Committee on Community Services and Administrative Services meetings. Additionally, he reported attending funeral services for Kelly Blue Morehouse at First Christian Church. He reported there were more than 1,000 people at the service, quoted from Michelle Turner of the Sugar Shack and encouraged the public to think about the consequences of drinking and driving. Councilmember Katapodis reported attending the League of California Cities Policy Committee on Public Safety meeting in Sacramento on Thursday, June 13, 2013. Mayor Boardman reported that she is the Council liaison to the Allied Arts Board and announced that on Sunday, June 23, 2013, the Art Center will host "Poetry at the Center" where two renowned poets, Lorene Delany-Ullman and Allison Benis White will present their award-winning poetry at 3:00 p.m. Additionally, she reported that in July the Art Center is hosting its summer exhibition "Custom Culture II". The opening reception is July 13, 2013. CITY MANAGER'S REPORT City Manager Fred Wilson congratulated Public Works Signs and Marking Crew employees Terry Tintle, Robert Bonillas, Geoff Peterson, James Benefiel, and Casimir Turlo who received the Community Service Programs' (CSP) Huntington Beach Youth Shelter Distinguished Partner Award for outstanding service. CONSENT CALENDAR Mayor Pro Tern Harper pulled Consent Calendar Item No. 16 for separate discussion and consideration. Councilmember Sullivan pulled Consent Calendar Item No. 1 for separate discussion and Council/ PFA Regular Minutes June 17,2013 Page 7 of 15 consideration. Councilmember Katapodis pulled Consent Calendar Item No. 17 for separate discussion and consideration. 1. Approved and adopted minutes of June 3, 2013 Councilmember Sullivan pulled this item for separate discussion and consideration and presented corrections to the minutes. A motion was made by Councilmember Sullivan, second by Councilmember Hardy to approve and adopt the minutes of the City Council/Public Financing Authority Regular Meeting of June 3, 2013, as amended and on file in the office of the City Clerk. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Carchio, Shaw, Katapodis (cid:9) NOES: None (cid:9) ABSTAIN: Boardman 2. Received and filed the Strategic Plan Update A motion was made by Councilmember Carchio, second by Councilmember Hardy to receive and file the updated status of the Six-Month Strategic Objectives. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 3. Approved appointments to the Historic Resources Board (HRB) A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve the reappointments of Gloria Alvarez, Kathy Bryant, and Kathie Schey to a second term expiring June 30, 2017, and the appointment of Duane Wentworth to a first term on the HRB expiring June 30, 2017. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 4. Adopted Resolution No. 2013-22 Adjusting Residential Refuse Charge A motion was made by Councilmember Carchio, second by Councilmember Hardy to adopt Resolution No. 2013-22, "A Resolution of the City Council of the City of Huntington Beach Adjusting Residential Refuse Charge By The Formula Established In The Revised And Restated Refuse Collection And Disposal Services Franchise Agreement As Ratified on March 21, 2011." The motion carried with the following roll call vote: Council/ PFA Regular Minutes June 17, 2013 Page 8 of 15 (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 5. Approved and authorized execution of Amendment No. 1 to Professional Services Contract with Liebert Cassidy & Whitmore in the amount of $100,000 for Legal Services A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Professional Services Contract between the City of Huntington Beach and Liebert Cassidy & Whitmore to Provide Legal Services." The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 6. Approved and authorized execution of a Special Utility Easement and Maintenance Agreement for dedication of Water Easements and Maintenance of Water Facilities at 7777 Edinger Avenue for Bella Terra Villas, LLC, (BTV) A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor to execute the "Special Utility Easement and Maintenance Agreement" for dedication of Water Easements and maintenance of public water facility located at 7777 Edinger Avenue for Bella Terra Villas, LLC (BTV). The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 7. Approved and authorized execution of a Special Utility Easement and Maintenance Agreement for dedication of Water Easements and Maintenance of Water Facilities at 7777 Edinger Avenue for Bella Terra with BTDJM Phase ll Associates, LLC (BTDJM) A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor to execute the "Special Utility Easement and Maintenance Agreement" for dedication of Water Easements and maintenance of public water facility located at 7777 Edinger Avenue for (BTDJM) property. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 8. Abandonment Agreement and Lease Agreement with the California State Lands Commission for a portion of State-owned land adjacent to Warner Avenue A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor to execute the "Abandonment Agreement (Lease No. PRC 8738.9 & Council/ PFA Regular Minutes June 17, 2013 Page 9 of 15 5769.1)" between the City of Huntington Beach and the California State Lands Commission for the removal and abandonment of an existing City sewer lift station and three sewer manholes; and, approve and authorize the Mayor to execute the "Lease Agreement W26638" between the City of Huntington Beach and the California State Lands Commission for the construction, use, and maintenance of a 12-inch diameter sewer force main and two 6-inch diameter sewer laterals; and the continued use and maintenance of the existing Warner Avenue Bridge and 14-inch diameter water pipeline. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 9. Approved and authorized the execution of the Non-Exclusive License Agreement with Children's Bureau of Southern California for the operation of the Oak View Center A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor and City Clerk to execute the "Non-Exclusive License Agreement Between The City of Huntington Beach and Children's Bureau of Southern California" for the operation of the Oak View Center. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 10. Awarded a construction contract in the amount of $1,531,725 to R.J. Noble Company for the Maintenance Zone 7, Residential Overlay Project, CC-1442 A motion was made by Councilmember Carchio, second by Councilmember Hardy to accept the lowest responsive and responsible base bid submitted by R.J. Noble in the amount of $1,531,725; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 11. Awarded and authorized execution of a construction contract in the amount of $273,947 with GMC Engineering Inc. for the Central Park Parking Lot Project, CC-1437 A motion was made by Councilmember Carchio, second by Councilmember Hardy to accept the lowest responsive and responsible bid submitted by GMC Engineering, Inc. in the amount of $273,947; and, authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. The motion carried with the following roll call vote: Council/ PFA Regular Minutes June 17, 2013 Page 10 of 15 (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 12. Approved and authorized execution of a License Agreement with Southern California Edison (SCE) for Langenbeck Park A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve the "License Agreement" with Southern California Edison for the use of 8.19 acres of property known as Langenbeck Park; and, authorize the Mayor and City Clerk to execute any and all documents necessary to conclude this transaction. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 13. Approved and authorized execution of a Professional Services Contract between the City and Helpanswers, Inc. for IRS Section 1790 payment consulting services; and, approve collection and expenditure of funds for the study of Southern California Edison owned street lights A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve the "Professional Services Contract Between the City of Huntington Beach and Helpanswers, Inc for 179D Delivery Payment Consulting Services;" and, authorize the City Manager to execute the contract as approved to form by the City Attorney; and, authorize the City Manager to sign any subsequent agreements, approved as to form by the City Attorney, necessary to advance, manage and secure the 179D payment to the City of Huntington Beach; and, approve the collection of the estimated upfront 179D payment of $19,159.95. Appropriate the $19,159.95 as revenue is received to Business Unit 80787009 for the Southern California Edison detailed valuation study of SCE owned street lights. The motion carried with the following roll call vote: (cid:9) AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis (cid:9) NOES: None 14. Approved and authorized execution of the First Amendment to the Memorandum of Understanding (MOU) between the City and the Huntington Beach Auto Dealers Association extending the Annual Beach Pass Program incentive program for one year (July 1, 2013 - June 30, 2014) with an additional one year option to renew (July 1, 2014 - June 30, 2015) A motion was made by Councilmember Carchio, second by Councilmember Hardy to approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to the Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" extending the term for one year with a one year option to renew, and authorize the City Manager to execute the option. The motion carried with the following roll call vote: