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only a test. I d like to call the meeting of the City council Public Financing authority to order City clerk MAY call the roll, please. Council member Moser council member Bolton here. Mayor Pro Tem Burns mayor, Vandermark Council member strickland Council member. McKeon Council Member calm all present. Thank You City council member comments Would anybody any council member like to make a comment? Ok cnn moving on to an announcement of supplemental communications pertaining to Closed Session and Study Session items. Do We have any supplemental communications? Yes Mayor for Study Session item number one, a PowerPoint presentation was was received from sunny ha, our chief financial officer, entitled City of Huntington Beach proposed fiscal year 2024 25 Budget Review and one email communication received regarding the item. Thank you. Do we have anyone signed up to speak. Yes. We have three people signed up to speak. I ll. Call them all down at this time, Pat Goodman. Robert Sternberg and Ellen. Riley. Please come down to both podiums. At this time the City Council will receive comments from members of the public on the Closed Session items. Individuals wishing to provide a comment on items MAY do so in person by falling out a request to speak form to and haddi it to the City clerk. All speakers are encouraged but not required to identify themselves by name Each speaker MAY have up to three minutes unless the volume of speakers warrants reducing the time allowance. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public would like to speak directly with the council. On an item not on the agenda MAY consider scheduling an appointment by contacting the City Council s administrative assistant at 7145365553, or email in the entire City council at City dot council at Sir City Dash hb.Org. First speaker Go ahead. Good evening, Uh Mayor Anne, mark and council members. My name is Pat Goodman and, um, I reviewed the PowerPoint provided by sunny ha, Um, for the preliminary discussion of the 2024 35. I mean 25 Budget General fund construction and progress. Information. How much time. Do. We have three minutes. Thank you? Um and I understand that the next meeting would present detailed, complete with the assumptions and notes for various funds under the control of the City. As I recall, there will be comparative, uh, statements. Actual versus budget statements for each department, uh, including the library. Um Here are some questions and requests that you disclose. Prior to the presentation of the first draft. Um, an explanation of what comprises the general fund losses and subsequent years in order to make corrections is it 2% increase in tot reflected in the 2024 25 budget has the comment um, mentioned by a member of the downtown bid group that visitors are down this Been reflected in the budget. Uh, line item. Comparative budgets, um for our elected officials and general manager identified as other expenditures at 3.8% of the total budget explanation of how the City accounts for settled and pending settlements of lawsuits and claims Update on payment of the redevelopment loan repayment by the state and the award to the kennedy commission related to the fifth Cycle Housing Element lawsuit where The payments to code for settlement reflected for each year and the balance due unfunded, accrued liability pension costs and estimates. Please provide a refresher of how this activity is estimated. And um, the accounting from year to year, subsequent budgets to 20. 2425 show, an increase of approximately 4 million per year in the ual. How are unfilled positions accounted for in the budget versus over time and outsourcing to backfill open positions if a position is open for an extended period is a time to eliminate it or outsource it. I noticed 35 open full time, part time positions. One promotional job on the, uh, website. How. Many fts do these openings represent? I also hope that, uh, I know that tonight you ll be discussing the point in time count. This is really important for us to improve the services provided to the Unhoused. Will there be any proposals in the new budget to address to prevent homelessness in the first place? This would be a great way to cut costs. Thank you. Thank you. Next speaker. Good afternoon, Mayor and City council members. My name is robert Sternberg. I m, a long term resident of Huntington Beach, and I m here personally to discuss something with you in relation to the budget and for future consideration, Uh, a year ago I was writing to you about an I don t believe it or not, That s not political, and it s not shouldn t be controversial, but an item of public safety. Um it s yellow borders on the traffic signals and also red reflective strips on stop signs. And also on crosswalks. Um I had emailed you, a, Um, pictures and something in mid MARCH. Some of you responded back. Thank you. I just wanted to say in consideration of the budget and what I have to say. Maybe. You can give this some consideration. Um, the City After. My, Uh, email changed their policy. So that all new, uh, traffic signals will have the yellow reflective borders on it, all right, But. They said nothing about at any time maintenance is done. They ll put them on. But. They said nothing about the recept. Uh the, um stop sign reflective strips. Uh, they are really, um, highly visible Fountain Valley did it actually, the state of California s new policy is to have it. That s why you re gonna see it up and down beach Boulevard and also Pacific Coast highway because they re state roads, and maybe Huntington Beach can do a little better by asking for some grant money. Or, um, some, you know, allocation from the public works, say, $50,000 to get some of the dangerous intersections. Uh, have this put on. Uh, I understand. That everybody thinks everybody I talk to think it s a great idea. But then they say, We have no money, so I don t know. I think collective minds can come up with some way to at least cover the dangers dangerous intersections in this City as the City know which intersections are dangerous, which ones have accidents? The Fire department knows public works knows. Even legal department knows which accident Uh, where they happen so I like Can you maybe give that a consideration in this budget and get this done so that, uh, with all the visitors that we have that it s more noticeable. Thank you very much for your consideration. Thank you. Next speaker. Go ahead. Um, yes. Um, I m. I m I haven t really seen the entire budget but I have some ways to save the City. A. Lot of money. Um And but the first thing is the rfp. That is suggested. Um I think that that should be canceled I, I know that you re talking about $1 million? I. Don t think anybody in Huntington Beach wants an out of state East Coast company coming in and taking over our library? I don t think anybody in Huntington Beach would want that to happen. Um, how to raise money. That s That number one. So, Can I. That s My Opinion. Cancel that rfp suggestion. Um builders and developers fill the housing element do what the state is asking because we have a lot of vacant land here and guess what happens when House housing element will be filled. The developers will come in. They ll Bring us a whole pot of money when we have extra housing, there s taxes, all kinds of taxes that homeowners will be paying to buy to sell. Uh, we have lots of Land. I d be glad to show you where it is, and it doesn t have to. I think we could possibly get it modified by the state, So. It s not dense and, um, it s not high rise or anything like that. I think we could work with the state to do that home sales bring huge amount of revenue to cities. That is something that we need. We need to bring in revenue. Um, I also had an idea about taxing, though taxing, considering taxing, um maybe raising taxes on Alcohol and and cigarettes that kind of, uh, discretionary consumption. Um, others I went to a, uh I ve gone to other City meetings on the budget. Neighboring cities They re talking about raising sales tax. Maybe. That something we consider sales tax is lower than adjacent cities or some adjacent cities. Um, I m suggesting that the overtime budget that we have for money staff be reduced or be reduced drastically. Um other cities proposed when I went to the their meetings, reducing training membership and all of these meetings that that staff have, uh but but they re training is good, but just reduce the time that I spent, uh time and money that is spent at all of these meetings. Um And close close open positions, The many open positions We have which people apparently do not want to fill, because unfortunately, there are many people who do not want to work in this City. Now. They feel like there s a really unpleasant, unpleasant atmosphere but close Positions that have been filled unfilled for ages. That ll save the City. A. Lot of money. Um and also consider capping or deleting extra positions in the City Attorney s office. Nobody has that many contracted workers working in City attorney offices in most of the area. Oh, helicopters Thank you. I Thank you. That concludes public comments. For Study Session. Thank you well, moving on to study sessions. Step, please, Um, proceed with your presentation. Ok, Thank you Good evening, Honorable Mayor and City Council members Tonight. We have a presentation presenting the proposed 2425 budget for review and consideration. So be going over the 2425 General fund budget as well as the capital improvement budget and the opioid settlement spending plan as well as key budget considerations for 2425. So. I m pleased to announce that the 2425 proposed budget is structurally balanced with a proposed $132,000 surplus, so we have recurring Rev General fund revenues of 293 million and one time revenues of 6.9 million, which are one time transfers, which are one time revenues of 6.9 million for the first repayment related to the waterfront loan. For, the for the Superior Court judgment. Um, for this. We re recommending that 25% be transferred to the section 115 trust in accordance with the reserve policy that was adopted by City council with the 2324 budget as well and then 23% would be transferred to the equipment replacement fund. 15% would be transferred to the Workers Compensation fund and the remaining 37% would be transferred to the General liability Fund. So. We. Also. The General fund expenditures includes personnel costs of 191 million operating costs of 57 million and non operating costs of 51.4 million for total expenditures of 299.6 million. So. We also have continued infrastructure investments in 2425 with total transfers General fund transfers to the Infrastructure Fund of 14.5 million So. Here we have a pie chart, which shows our proposed revenues, General fund revenues and as you can see, property tax does make up our largest allocation at 36.1%, or 100, or close to 100 and 5 Million and then sales tax at close to 18%, or 52 million. So some of the major revenue variances include property tax, which has a $3.3 million increase from our mid year projections, and that s largely due to higher assist valuations. Um as of JANUARY, 1st, and then we also have, um, an increase in revenue from other agencies, and that s largely due to the Cal Optima revenues that we will be receiving from our ems transports. And, then we also have increases in non operating revenues as well. And. Um, that would be due to the one time transfer as previously mentioned of 6.9 million from the former redevelopment agencies for the first for the first repayment related to the waterfront loan, Superior Court judgment and again this is partially offset by the by the current year. One time revenue of 2.3 million for the Emerald Cove Superior Court judgment. So. The. Next. We have the 2425 General fund proposed expenditures of 299.6 million, So. We have it shown to section two forms, both by category and by department, so personnel costs do make up the largest percentage of the general fund expenditures at 63.7%. I followed by operating at 19.1% and then debt service at 2.2% in transfers at 15%. And then we have it broken out again by department as well. So, some of the major expenditure variances for personnel. It just include, um increases to Calpers, um, particularly with our c per zoal. So fiscal year. 2425 is when we ll first recognize, um, the increase in our Cal Persie due to the negative 7.5% Calpers investment return that was experienced in fiscal year 2122. We also have continuing impacts. Um from our mou from our mo us and, um we re also recommending the addition of four fts as well and will provide more information on that in the following slides. And. We do have a decrease in our operating costs and of 2.6%, and, um, that was due to just a department to a citywide effort from all of our departments to realign costs and to just gain efficiencies in order to preserve funding for just the contractual increases and inflationary demands so that we could really, um, preserve the core services provided by the City. So within the 2425 budget we re recommending for new positions so within the community Development department were recommending one building inspection supervisor in order to provide staff supervision and oversight for complex residential and commercial projects, so this will really help with succession planning and also to be able to provide, um just greater services to to the public as well. And, then within the fire department. Um we re also recommending the addition of one limited term management aid to serve as a community engagement coordinator and this would be funded through opioid settlement funds. And so this would be a strictly grant funded position. And so when whenever the opioid settlement funding, um, runs out, then this position would also be eliminated at that time as well. So within the police department. We re also recommending the addition of one real time crime center supervisor. And So this would be the first position that would be directly related to the real time crime Center, um, in order to just kind of oversee the setup for a new real time Crime center. And so then within the public works department, Uh, we have one fleet maintenance crew leader that we re recommending, and that would be to coordinate. Um, just monitoring and oversight for the city s nine fuel sites. Um, we do have just increased regulatory, um, compliance just from, um both federal, state and local agencies. And. It is, um, just requiring more and more time from our existing fleet staff and Um just non-compliance would result in more fines. Um and just more fines and penalties. Um, that could potentially arise. Um if this position were weren filled And, then, Um, we also have one senior mechanic position that we re also recommending as well and that position would provide support for the fire department in order to help with, um just increased, um, demands just due to, um More of call volume and increased transports. Um, that cause increased wear and tear on the fire department s ambulances and engines. So. We re also recommending restructuring non general fund positions as well. So upgrading one vacant capital projects administrator to a capital project supervisor in order to oversee construction project management, as well as contract administration and upgrading one vacant Deputy public works director position and combining the, um Public works City engineer position with the deputy public works director position, um just for greater efficiencies, and as a result, we would eliminate the City engineer position. So. Then. Here s just an overview of our full time. Um fte count for all funds, Um, from fiscal year 1415 through fiscal year 2425 And. So. Then Here we have the City, Um long term financial plan, So, As, you can see, Um it was updated to include our proposed 2425 budget with our one time revenues received from the waterfront loan. Um, and that are projected surplus of 100 and 32,000. And. Then. We also have our um projected outlook through fiscal year 2728. So. This Outlook, um, for 2526 through 2728 has remained the same from the major presentation that was presented in MARCH. So, just in keeping with the city s strategic plan, goal of fiscal stability and just to proactively address the future budget deficits that were shown in the previous slide. Um, we ve retained consultants in order to prepare updated fee schedules for both our ems fees as well as our master fees as as well as our master fee and charges that schedules um so the city s ems fees were last updated in 2021. And. The City s masterpiece schedule was last updated in 2016. So just for best practices. Uh, we, as I said Retain consultants to prepare updated fee schedules and so we will be presenting our recommendations. Um, at our budget adoption presentation. And. So with that I ll be turning the presentation over to our City engineer Tom Herb to discuss our c ip. Thank you sunny. Well, good afternoon. Mayor Council staff. Um, with me here today is Joe Fuentes. I. Gotta Give a shout out to my guy back there in the back. Um he s instrumental in helping put this massive project together. Um so I just want to give him the kudos tonight And also, this really is our major planning tool. This helps us plan Organize what we do, day in and day out. We don t do things. On the cuff on the fly. So. This is our future. This is how we plan the work we do, And this is helps us to execute the plan. I. Also up here today. There s a great picture up there of the people that serve you day in and day out 24 73 65. They re there for your emergencies are floods anything that happens within the City public works is there For the entire City, no matter what it is. Um, I also want to give a big shout out to Sarah Whitecotton and Nancy Rodriguez, who are part of the backbone of assembling the c ip with Joe and also Dave Fed, Our, construction manager who builds all the stuff that s going on out there that you see we ve got 20 projects under construction right now and 35 completing, and it doesn t happen without a team, So. I want to give kudos to them also And. Also. I ll ask that you reserve questions. I think you already know till the end of the presentation. Um and next slide, please. So before I get into this year s c api just want to acknowledge that while we have done a lot, I talked about the 20 projects under construction and 35 completed. And with that, Uh, we re moving the infrastructure forward for the City. Um and under the funding sources category there, uh, the most important sought after fund is our General Fund Infrastructure fund. Um, we had 30 million in requests and I m proud to say we re actually able to fund 8 million of those requests. Of course we all wish we had an unlimited source of income to fund everything, but we re very good at organizing and prioritizing what we do. And now on to this year s c ip. We have $35 million in projects proposed this year with 8 million in continuing funds. That s ok, Sonny, You can go to the next one. So. Now. Let s just talk infrastructure because that s what we re here to talk about the first category. Is drainage and we have one project this year, which is the installation of nine tide check valves. Everybody knows the harbor and pc h and when we get the king tides it floods these valves will be installed to help keep the water from coming back up the storm drains and into our streets, So we ve needed these for a long time. Uh, Caltrans has some of them. We re actually working with Caltrans to update theirs because they leak so this will be a great step forward to keeping Sabr pc h and quite a few of the streets in the harbor from water backing up during the king tides into the streets. Next slide. Sunny In. The facilities category. There are 4.9 million in projects planned. I m Just gonna go over some of the most notable projects. Um, the Newland House Museum, We re gonna be replacing rotted wood and repaint. The park Bench Cafe is gonna get a new roof and siding repair. We re gonna be adding air conditioning at the Main Street library. In addition, we re going to be doing a leak assessment at Civic Center to identify the causes of the water leaking into the lower level. We ve all seen the hoses in the lower level that drain into trash cans. We re trying to figure out the cause of that problem. Uh, Next also is the installation of fueling station canopies at our park trees and landscape Yard Lake fire station or corporate yard and beach maintenance yards, and we need this in order to comply with the regional water quality control board requirements. In addition to the downtown parking structure. We re upgrading the elevators, the stairs and signage. And, then also, we re getting two new butler buildings one at got their fire and my fire to house fire fire apparatus. Next slide. Thanks Sunny. In, the neighborhood category. There is the Zone two Project for 7 Million, which involves new concrete sidewalks, curb returns, trees and paving, which includes both slurry seal and asphalt overlay, and zone two is bounded by Warner to the north. Beach to the east Springdale to the West and Ellis to the south. In, the parks and beaches category. There are 4.6 million in projects planned some of those most notable projects include ninth Street Playground, Um, the playground That s down there We Call it Pirate park. Um It s open to the salt air, and it corrodes heavily, so there s a lot of replacement that needs to be done, and we re gonna be doing it with more stainless steel and wood type. Um Improvements to the park to keep it and make it last longer. We re also gonna be, um, upgrading softball fields at both career and worthy park with new turf and irrigation. In addition to that Langenbeck park, which is at Garfield in Newland and Pleasant view Park at Highland Nan. We ll get new play equipment. Discovery. Well park will get a new booster pump for irrigation. Uh you all notice the irrigation shut off because the booster pump has failed. And at pc, h and Sixth Street. We ll be getting a new sidewalk to move pedestrians off the drive aisle If you notice when you come across from cv s Pharmacy, you have to walk down the drive aisle. There s no direct path to get you to the beach from there, so we ll be adding a sidewalk on the southern side to be able to get people out of the drive aisle and walking along the side of the drive aisle. Next category, Sonny And, then in the sewer improvement category, there s 2 million for the construction of the wet well for the McFadden lift station, which is basically Phase two. We had to separate with the original contractor due to contractual disagreements. So this is basically Phase two, which is building the big hole in the ground out out there. Next slide you already there and then in the streets and transportation category, There s 8.2 million in projects planned some of those most notable projects include the ad a Improvement program, which is the construction of the ad improvement. Citywide, as identified in the city s 80 a transition plan. In addition, the citywide mobility and Corridor improvements are for projects that enhance bicycle and pedestrian. Uh, facilities. In addition to that we re gonna be doing a downtown street Lighting project, which is replacing the old high voltage circuits downtown that have a tendency to fail and this street light circuit is along main Street from 14th to pecan. And. Then In addition to that, Uh, the bolsa Chica bridge will get some preventative maintenance and when I say preventive maintenance when you see a lot of our bridges, there s spalled concrete. The railings damaged. Um There s things that need a lot of help due to our salt environment. So we re doing a lot of basically cosmetic improvements to keep the bridges last longer. And then also the last one is the main street in downtown area staff is currently working on a phased plan for the implementation of the specific plan. And this money will be used for the final design of the first phase of the identified improvements. If so, In the water category. There are 8.2 million in projects planned some of those notable projects are the peck Reservoir, which will be assessed as to whether the roof needs to be replaced or rehabbed due to corrosion damage. Uh, well, three a will construct improvements for the treatment of the high levels of manganese in our water. In addition to that well for rehab will increase water capacity with new pumps and motors. Well 14 House and Drilling project will provide for all new underground work such as well drilling and zone aquifer, testing and preparation for a new well Um, In addition to that the well 14 Storm drain, which supports the project I just talked about will provide for the design of a storm drain system to capture the flow. From the new well, So when we start up a new well, there s a lot of discharge before we can put it into the drinking water system, and that storm drain is needed to be able to carry those flows that we discharge and they ll just go into the storm Drain system. And last but not least oc 35 needs to be relocated as the old location has had water quality problems due to stagnant water, and this new location will help us to provide freshwater. And. Then with that I m gonna turn it over. I said questions up there, but I ll just turn it over to chief Lopez to talk about opioid settlement. Thank you, Tom, Honorable mayor and council members. My name is Jeff Lopez and I ll be turning in my button on Thank you very much honorable Mayor and council members Jeff Lopez with the fire department presenting our 2425 fiscal year Opioid settlement spending plan. We have as, uh, You MAY be aware, um, a good deal of funds that have come to us, uh, through a couple of different settlements and bankruptcy process That gives us a close to $900,000 on hand that the Fire department is proposing that we spend in the coming fiscal year and we ll be, uh, doing so in accordance with the settlement agreements that are in place. There s two separate settlement agreements, also a statewide abatement agreement from the Malin Croft. Uh Cy. The. The funds would be used for high impact abatement. Uh, activities as stipulated at least 50% of the funds that come from the abatement fund need to be used on high impact abatement, um, activities and will do so and and all of the funds will be tracked and spent, according to, uh the other requirements and you ll see on the third slide or second slide. Uh, Go one more down. On the allowable expenditures here. Uh, we have a chart that you probably can t read it too Well from there. I m blowing it up just for me from here. Uh, but Five. Of the six items identified on the high impact abatement activities are gonna be where we will focus our attention. And. I won t get into details on it. Uh, largely because a big part of our process is hiring a physician to help us design the plan for doing all of this. Um so the other funds that don t hit that table will all still be following the additional charts from Category a and category b in the, um In the settlement agreements. There are a couple of key positions that we need in order to succeed in our efforts here. I m going to advance the slide, please. And. These are these two positions? One of them is a chief medical officer. And so we are proposing to cover 100% of the costs for a chief medical officer in year one to basically build our plan. Build up the programs in place, and, uh then from there, forward, we ll we ll reduce the amount of opioid money paying that physician because our hopes is that he finds other additional funding sources to continue the efforts that we re doing. So. The year, One effort will be a big push to help set us up for subsequent years. The other position is a full time this would be an employee, whereas the physician would be by contract. Uh, the other position we re asking for is an fte, Uh, management aid position that, as was mentioned earlier by our chief financial officer, uh, will only be employed as long as we re getting these funds and so it s a limited term role, depending on the continue to appeal, opioid settlement funding, and this person would be community outreach. They d be the one out there in the street, putting the plan into And connecting with schools connecting with facilities connecting with even the homeless, connecting with folks in the community where we re working to make contacts. And in the next slide, you ll see a detailed expenditure plan that, uh, outlines six different areas where we we would be spending these funds two of them we already described in those two positions, um, and a bulk of it is, um also going to be for, uh, equipment and supplies. Um, some of which MAY or MAY not get fully spent, uh in the 2425 fiscal year, but all these funds roll over. We have five years to spend. Uh, the funds that we received. And, so the key is going to be for those two positions getting put in place and the physician working on a plan for us to deploy all of these expenses that we ve described here? Do. You, have any questions for me on the topic? I don t ok? Council member Moser This might be a later question. Um, but with regards to the chief medical officer, um I know it s part time and they re gonna be focusing on the substance Use disorder. Um, issue, um If. There s spare time, which I doubt there will be with this person potentially look at other things like we were talking about street medicine. Um, are those types of options in the future. Yes. Certainly because street medicine Really, um, that we were looking at, as as a City, um, would be able to be targeting like straight away that opioid use disorder efforts and all this and so that that sort of model of a mobile effort to provide health care to everybody you know in our community, including specifically that mobile use will be great for targeting the homeless. And so absolutely, um, it would be directed For opioid use disorder. Um However, um Only, he you know he s going to be He or she who Who whoever, you know, bids and and and we hire will be, uh, putting in 20 hours a week and we ll be using them for the opioid effort. But It will just contain and include helping the homeless and so our hope is that it morphs over time with other funding sources that we can pull in, such as agreements with Cal Optima and things like that, so that we can get medic funds to really do our own version. If you wanna call it that of street medicine? Thank you. Council member burns our Mayor Pro Tem. Off that can you give me a definition of what street medicine is? Yeah? Absolutely so street Medicine is a program that s being utilized in Garden Grove, and they re expanding to Anaheim and I think possibly one other City, and it s um an organization. Uh, put a proposal for for forward to, uh, medic through Cal Optima seeking funding through this Cal aim process where they re the state is funneling money and to get, um Treatment to homeless and to the folks who otherwise don t have any coverage, and so this group goes out finds people who have not enrolled in Medi Cal helps them get enrolled in Medi, Cal and then begins to provide medical care right where they are. They. Don t ask them to show but if at a facility they come, and they find him at the place where they tend to, you know, reside and they deliver medical care. They give them assessments. They medicate them and all this So one of the things that we will be f, um, specifically focusing on in the opioid effort would be medic, Medical assisted treatment where you can give injections of a medication called buprenorphine. Where. It is it basically makes opioids ineffective if they were to take them and it helps recover, and it s It s basically a newer, better idea of like what methadone was in in the past. And so this is a monthly a month injection that has has done radical improvements, uh, across the country in anywhere where it s been put in service, so that s one of the things we d be looking at. And as we begin that process, Um our hopes would be that maybe it could grow from just opioid use disorder disorder that we re treating to lots of other things for these people. Ok I street medicine. My old dope days. I just hope you re not gonna feed them needles and no, it s it s all it is, is providing health care. Yeah. It s It s just providing health care to, uh and and this This proposal is not street medicine, but but as I describing street medicine, it s health care provided to those that are homeless and it s happening around us. We actually put in a proposal. Uh, the City did for it, and they chose Anaheim over us because of the higher number of homeless. And you guys are looking for about 100 and 22,000 to fund these. These projects that you re asking for. So for fiscal year. 2425. We re asking for $900,000, and that s what we have in the bank that we can only spend on this. Yeah the 893, but that s what we re asking about, Then above that you re asking for another 122 2322. We re not asking for anything Just. Yet above that all of its contained in that so everything that you see here, 100 and 20. And on the engagement coordinator 43,000 on a, uh, a part time contracted nurse. Um which is when we already have. We re just getting more hours for that person, Which is why we didn t mention it as an additional position. The engagement coordinator. Um, the chief medical officer. The equipment and supplies of almost $400,000. All that would go into helping provide opioid use disorder treatment, preventive education. You know the whole thing? Yeah. Thank you? Does. Anyone else have questions. I just wanted to confirm that this this program these positions will only exist as long as the outside funding is in place, And, so there won t be any burden on Huntington Beach taxpayer financially. That s correct. This is all we re gonna all we re gonna do is use the opioid opioid funds and and we have existing funds in place that you can see in that third column. But. Those Existing funds are existing. They re already there. It s just we re We re adding time to a person that we already have. So. We re not adding any cost. Um, and anything that we might envision. We re talking about possibilities in the future would all be things that would be brought before you, Uh, once we find appropriate funding sources to fund anything at all Outside of exactly what we re describing. Yeah. So, then how much like runway will we get knowing that the funding is going to continue to come in like I just like notice for you guys that we can keep the program going or if we need to shut it down for this? Basically? Um, a majority of the sources where the money s coming are going to be here for about 18? Years, though we expect this to be a pretty long term thing. But, things change. And so as soon as we ever find out anything otherwise you would know right away, but we expect this to be 18 years or so of funding and council member McKeon if I can for a little bit of context as well. The opioid settlement is a result of, uh Huntington Beach suing the, um the pharmaceutical companies back in 2019, and there was a national settlement. It was billions and billions of dollars are slice. The pie is estimated at about 4 to $5 million over a few years in payments over a few years, so So from that source directly, uh, about 4 to $5 million Anybody else? Ok, thank you. Thank you very much and thank you for pushing the button for me. So. Now. We re moving on to Closed Session announcements. Um I want to go? Oh, you re going back to the project. I m sorry, ok? Go ahead. Sorry. I forgot about you. No problem. Um so just, um, for key budget considerations, um, so City council feedback is, um, requested, just especially as it relates to the addition of four fts across the various departments and then the General fund portion of the waterfront loan settlement. Um, the allocation is recommended, um, with Um, the 25% of the section, 115 trust and the allocations to the equipment Replacement Fund Workers Compensation Fund in general Liability Fund as well as the fire departments Year. One spending plan for the opioid settlement funds. And then based on City council feedback tonight staff will make requisite adjustments to our proposed 2425 budget, and then the revised budget will be brought back for formal City council consideration and and potential adoption on JUNE 4th. Um so one thing I d also like to note as well. Is that the budget the proposed 2425 budget will be available on the city s website. This weekend. So. It should be available, Hopefully by the end of day Saturday or early Sunday morning. Um, for the public to review So with that I d like to open it for any additional questions. Say. Anybody else? Council member Bolton. Thank you mayor. Yeah. I do have a couple of questions so going back to slides, 10 and 11 just to clarify, So those are the ones that cover the new ftes that are being requested. So. I. Just wanna make sure That I, you know, clarify it in my mind. So. These are positions that are either Allowing us to increase revenue because they re in a revenue generating position. They re there for efficiency s sake or their because we have to have them for, um Compliance with some type of measure. Is that a pretty fair description of what these four new positions are four. So they were so in the case of community development, it would be revenue generating, um for the police department. It would be, um for, um, the City council s strategic goal of publics of public safety. Um and then for public works. Um yes, it would be, um, for both efficiencies as well as per cost saving so ok, thanks and the public safety maintenance as well. One more question on the detailed, um, budget. So the big notebook that we got had all the um, uh, tables in them. So. There s a table for the hr department. Um and I wanted to ask a question about a line item in that, so it s on page 230. And. I. Just wanna point out 230 So human resources proposed budget. Um, if you go down to the next to the last line Before the total for operating expenses. It is aligned, uh, for claims expenses. And. It rep, Uh, references a 95% year over year increase, uh, for claims expenses and so I wanted to ask if someone could provide information about what that represents. And. Then. The. Second question is whether the staff is working on any type of plan to help reduce those expenses, assuming they re the type of thing that could be reduced. 230 is the public works section ok, I m sorry, 203. Um, reversing my numbers, so 203 So the increase in the claims expenses. Um, is, um, something that we develop in so the claims expenses is something that we develop in conjunction with the City attorney s office as well as with our general liabilities, Claims Examiner Carl Warren, So we look at all of our outstanding claims and we look to see what will potentially be settled in the upcoming fiscal year and then we budget accordingly. Um, so we do have a large number of claims. And with that. It just depends on, you know, timing as far as what could potentially be settled in the next year. Is it possible then for somebody to provide some information on what that Amount encompasses and also again whether there are things Um, uh, being considered by the staff to help Reduce that amount. Uh, I m just trying to get a sense for it. You know that s a That s a big increase from one year to the next. So. What. I wanna know what I wanna know is if we have a handle on what s happening there, and you know what we re gonna do about it, basically because it does include legal, um, claims of have to defer to the City attorney on that. Yeah, and and correct me if I m wrong, Uh, because I don t know how, uh, our risk assessment and and evaluation of claims translates to the budget necessarily, but I think what this is is a forecast of evaluating each case, um, for potential liability, right? So. I m seeing a head nod and we assign a number to it. Oftentimes if there s a a high damages motor vehicle accident and I m going to speak in hypotheticals because I I don t want, um, anything revealed about our internal assessment about a particular case. But, hypothetically speaking if there s a large damages motor vehicle accident case Our. Uh, we will evaluate the liability first and then the damages. Um, if it s a, uh so what happens is when we come out with an ultimate number. It s a. That a calculation of both the liability and the damages so you could have a situation where there s a motor vehicle accident that involves a City worker and there s zero liability right, but it could be based on the damages it could be or or the damages claims. It could be a million dollars worth of damages, right? But. We wouldn t necessarily say in the budget. It s a million dollars we MAY say, based on the probability of either succeeding at trial based on the no liability picture or in a settlement based on the low liability picture or no liability picture, we will assign it, Let s say, $100,000. So then we just put a footprint in the budget of $100,000 in my so far so good ok. Now, on the other hand, we could have a high liability claim where we we know that The City is at fault, right? Um, but then, on the other hand, the damages MAY only be let say it s a quarter million dollars in damages. We MAY go ahead to be conservative. We MAY go ahead and and put a $250,000 footprint in the budget on a $250,000 damages case, because we know our liability is high. So with both of the knobs, we just sort of, uh, come up with an estimate of what It could be often times and and I think Sunny has experience with this with our office. Often times. We re so conservative that we re beating those numbers so we MAY have a million dollar footprint in the budget, but we actually come out resolving it for 100 and $50,000. So So, So I think that s my best explanation if you have any other questions, I m. I m happy to answer, but I think that s my best explanation. Ok so then, to the extent um, because, ok obviously if there are If. Is it all litigation claims because if it s all litigation claims, and that answers the question about whether there s anything that could be done to reduce, um you know the amount of claims that we re looking at every year because I understand that that just kind of depends on How. Often we get sued right and they are from my vantage point. They re a liability claims now, Um, finance MAY say it also includes, um, claims that are pre litigation so there MAY be dollars built in there that I that never come to my office because they re at the claim stage, not the litigation stage so I would defer to finance on that clarification, so it it does because it would also include all claims that Carl Warren has as well which would be the I m pre litigation stage. Ok, thank you. Said it for questions. Council member Moser Thanks. Um ok a couple of questions. Let see, Um 14. The combination of the engineer and deputy public works director. I just wanted to understand. Um, if there are any drawbacks to that of combining those positions or kind of what the benefits are besides financial, obviously. Yes. The benefit to that is, um we will not be filling the City engineer position so there will be cost savings as part of that It is efficient, because, um, we are combining, um, the engineering section with the transportation section. Those two divisions work hand in hand, and so there is strong, um, nexus between and Cooper operation between those two divisions, and it makes sense to have one person overseeing both sections and, um Are sitting during is very capable of running transportation. Ok great. Thank you very much, um, also, um, for I. Think for sunny, um, page 14. It does talk about, um, hiring a consultant for the um updated fee schedule, looking at possible solutions considering we have projected deficits beginning next year. Um, since we re looking at, um, being somewhat forward, thinking, um, I know in the past when we had, um, projections of deficits, um, like back in 2008, Let s say nine and Um, we were presented or the council then was presented with additional tools to look out, maybe outside of the fee revenue. Um, enhancements. Will we be receiving those at the budget review meeting. Um, so we won t be presenting those at the budget adoption. However. We will continue to be presenting, um, council with additional, um with additional options throughout the fiscal year. Ok, thank you. See, um, now going over to the c ip, Um thank you. Sunny. For just a couple specific questions. I think on kind of projects for that, and well, one. I. Appreciate that, um 30 million was requested and 8 million was recommended due to the available, um, monies. Um, just What happens, though, to those 22 millions worth of projects. Um, are any of those in a high priority position where it could negatively impact the City by not, um, moving forward with them. So. That s a great question council member. Get closer. When we develop the c. I. We have four categories that we rank projects in Basically life safety, public health, those we make sure get funded. Then. There s other ones like I. I liken it to like painting your house. I d love to paint my house every year and make it look Brand new, But. Do we need to No. So. There s a lot of projects that we can stall off year after year. But, of course, the deferred maintenance gets to a point where we have to do it, but fortunately if we plan it ahead, so that ok, we don t need to do it right now. It was requested. It s on the books, so that s when we say we have a seven year capital improvement program. We look seven years ahead and said, What do we need to do in this City and we d like to do everything now right now, but we can t so the public safety ones and you know things such as the tide valves that keep streets from flooding. Uh so that we have the fire department can get where they need to go when it rains, and we have high tides. Those things get implemented. The. Other things just get deferred. Um, I think if you look around the City, we have a lot of facilities. I wish I a lot more money for our facilities. Um, but we re addressing the public safety issues such as the drainage and the lower level and things of that nature. We re addressing right away. I d love to put a lot of lipstick on all of our hundreds of facilities in the City, but they don t have to be done right now. Thank you? I mean then, Um, I guess this might be a sunny item or I m Sorry, not sunny Chow. Um, looking at that. I know we had our infrastructure report card Committee. Um, just can you fill us in on maybe the timing because some of those other items might show up within that space. Actually. Some of the items that were identified as part of the infrastructure report card are in the c ip. Um, One example are, um The, Uh, the harbor the Tom. What was that the huntington Harbor, the bulkheads that was identified in the Instru infrastructure, poor car That s in our c ip. So. Some of that has risen to the priority of our c ip that you see today, um right now, as as far as our schedule JUNE where we are in progress with a draft future improvement needs. JULY. We re gonna finalize our future improvement needs. AUGUST. We have a public facilities financing plan. SEPTEMBER. We will have a consolidated report in OCTOBER. We will have a final report as well as a public release for the infrastructure report card as well as the grade and strategies on addressing those needs so that that is the flow of the infrastructure Po card right now, Uh, we do have our ratings. We do have our grades and we ve shared that with the council is just we wanna make sure we covered all of our bases. We divulge our grade to the public. Thank you? I m looking forward to the strategies in OCTOBER. Thank you. Um, with regards to just a couple more items on the c ip the tide check valves. Um, I was at a Sunset beach community meeting and they were talking about pooling at Anderson in Sunset beach. Do, You know if that s covered, and we can talk about that later, if not so. Anderson Street pulling Anderson is on Caltrans right away. So we are working with Caltrans. Their t check valves are Um old and don t work and actually, some of their valves are manual and sometimes they don t get their get out there in time to install them. Um, what they do is they have these big balloons. They throw them in the storm drain and they blow them up, and sometimes they don t get that debt down there in time to install them, So that s why we re having them put in the tide check valves because those are their 24 73 65 to help prevent that. So that s actually a Cal Trans project that we re working with them on. Great. Thank you with regards to the McFadden sewer lift. Do. We. Have any, um, information on the timing once we begin that again, so the goal is to begin that again in the fall. We wanna hit there before the rainy season? So when we do 35 ft Big deep holes in the ground. Uh, we don t wanna be doing it in FEBRUARY or MARCH when it s raining and the groundwater level. I think everybody notices when you drive through the City right now we re still seeing water seep out of the streets. It because our groundwater is super high from the Marines we had, so we like to do our big digs in the fall, and it ll probably be right around SEPTEMBER when we start Great. Thank you, um c with regards to the ad a improvement plan? Um not a lot of detail, but, um, can you just tell us a little bit more about maybe the timing and just maybe high level bullets of what that will include. Ok, so we are in progress of the a transition plan for the entire City evaluates every path of travel. Every public facility City owned City leased park. Uh, sidewalks so you might be noticing some folks who are riding around in Segways around town with measuring tape. Those are the deck consultants, disability, disability accessibility consultants, and so they have been in progress of surveying the entire City for the last year and a half we are. We re finalizing the report and it is wrapping up at the end of the month. We have set up a meeting with internal staff. In JUNE mid JUNE so that we can review the report evaluate the findings and then come up with funding strategies. Uh, right now we have budgeted approximately $250,000 every year to address ad a improvements. So based on that report. That report will identify what we need to do to meet ad a compliance and so we have a funding source. It s in our budget. It will be ongoing that will help us comply with our a plan. Thank you all. Yeah, just real quick. I wanted to bring attention to, uh, page 22. We ve had, you know, residents have had questions on the downtown and main street upgrades and just won t let the community know that that is in process with the street lining better signage and then the main street specific plan. Um, study, which will, uh the specific plan already exists. And that s the, uh, flip the sidewalks on the second block to the outside to provide some more outdoor dining options, So I know residents have been curious about The status of that, and I assure you it s been in process. We re working on it, and you can see here that it s um it s been allocated with some financial dollars. Okay? Ok. That s it Now we ll be moving on to Closed Session. Um, in present in our Closed Session. We will have a conference with labor negotiators. Government code sections 54957. 0.6 agency designated representatives. Eric Parra in our City manager, also in attendance. Marissa se, director of human resources, Travis Hopkins, assistant City manager, Michael Gates City attorney and Sunny Ha, chief financial officer, officer. Employee organization non represented employees conference with Labor negotiators Government Code section 5 Agency designated representatives Eric Parra interim City manager. Also in attendance. Marissa se, director of Human Resources Travis Hopkins Assistant City manager, Michael Gate City attorney and Sunny Hunt, chief Financial Officer Employee organization would be the Moving to close session. Id like to reconvene the regular meeting of the City Council Public Financing Authority. City clerk. MAY. I have the roll call, please. Sure. Council member Mosher here. Council member Bolton here, Mayor Pro tem Burns. Mayor Vandermark. Council member Strickland here. Council member McKeon and Council member kick here. Thank you? I d like to announce that. Um city attorney Michael Gates has requested to be absent of this portion of the meeting pursuant to charter section 309 and sitting in in his place is senior Deputy City Attorney Nick Papa John. Thank you Tonight s pledge of Allegiance will be led by Assistant City Clerk Juan Esquivel. Thank you, Mayor. Please rise If, you re able to put your right hand over your heart. Ready Begin. I do very loud. What Well. Are in vocation will be delivered by our police and fire chaplain Roger Wang. Would you Please join me in prayer As. We begin this evening s City Council meeting. Heavenly father. You. Tell us in your word for for the Lord gives wisdom From, his mouth come knowledge and understanding. And as we begin tonight. City Council meeting We want to tap into that wisdom and knowledge that you so graciously and willingly offer to provide to us? We pray for each of our city council members as they deal with the very many difficult issues of our city and those that are on the agenda this evening. But. You impart each one with your wisdom and discernment. We pray for peace, unity and harmony and ask that you would give them guidance to be able to make the best decisions to move our city forward. You, Love and Grace overcome all the differences of views. Lord. We pray for those who will be providing their input and sharing their comments at the podium this evening. Help them guide them to share clearly calmly, concisely and with the utmost dignity and respect. We. Thank you for bringing him 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 attorney city manager, treasurer, city clerk, Police and Fire Chiefs, 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 and you keep them safe and give them your wisdom on every call. We pray that Huntington Beach will have a safe, enjoyable and prosperous summer season. Especially during these troubled times. We. Ask your blessing on the thousands of visitors who will be visiting our city and enjoying all the beauty and festivities that Huntington Beach offers. We pray that everyone who enters our city will experience an encouraging, relaxed and enjoyable time that prevents presents Huntington Beach as the great, safe, peaceful and enjoyable community. It is and encourages them to return. So, Lord, we now ask you to bless our meeting this evening, and MAY your peace and wisdom guide all that occurs tonight. And. We ask this in your wonderful name, Lord. Amen. Amen. Moving on to closed session. Uh, reports. City attorney Do You have anything to report from closed session. Nothing to report Mayor. Thank you announcements of Supplemental communications. Do. We have any supplemental communications? Yes, we do. These were communications received up to 9 A.M.. This morning. There were a couple of extras that will be, um uh, posted to the city s website today and in the record tomorrow for consent Calendar Item eight, a communication for myself regarding our request made by council member Bolton to revise the MAY 7th City Council meeting minutes. Um, if approved, it will just be approved per supplemental communication. Another email communication was received from Marlon Calderon of And Calderon Corporation, also requesting a revision to the MAY 7 City Council meeting minutes. It s on your Ipads if you d like to read it. For consent calendar number 10, an email communication received regarding proposed design concept and placement of a plaque celebrating the 50th jubilee of Huntington Central Park. And for council member items number 17 3 email communications received regarding the proposed renaming of commerce Lane to Ed Air Ed Laird Lane, That s it. Thank you. Moving on to public comments. Do We have anyone signed up to speak? Yes right now. I think we have 53 signed up to speak. Ok. We will, um, give them two minutes each at this. Uh, ok. Go ahead. You can read your at this time the City Council will receive comments from members of the public regarding any topic, including items on the open session agenda. Individuals wishing to provide a comment MAY do so in person by filling out a request to speak for delivered to the city clerk. All speakers are encouraged but not required to identify themselves by name. Each speaker MAY have up to three minutes unless the volume of speakers warrants reducing the time allowance. Please note that the Brown Act does not allow discussion or actions on topics that are not on the agenda. Members of the public who would like to speak directly with the Council member on an item not on the agenda MAY consider scheduling an appointment by contacting the city Council s administrative assistant at 7145365553, or email in the entire city Council at city dot council at Surf City dash hb.Org. Can you call the 1st 10, please. 1st 10 speakers. Please come down and approach. Both podiums. Barbara Shapiro. John Etheridge. Amory Hansen. Chad Williams. John McGee. Jeannie Paris. Steve Quinn. Patty Pappas. And Palmer. Lucinda Moros. Valentina Bankhead. First speaker. Go ahead. If, you folks turn your out. We first Good Evening City Council in the city of Huntington Beach all super happy to be here. Uh, my name is John Etheridge. I the PRESIDENT Of the surfing Walk of fame. I have some of my board members here. Heather from visit hb, Glenn Bromage, Mike Adams and Rick Brown. We re, uh, we re thrilled to be here with you tonight. We. Have, Uh, we have a habit here in surf city of celebrating surfing, surf culture and surfers. Uh, AUGUST 8th this year during the us open of surfing, Uh we will have our our induction ceremony. Uh, this year will be inducting a Bean Copeland, surf Pioneer, Uh, surf champion Felipe Pomar local hero, Jeff Defenbaugh if you guys know him the surf culture Doug Warbrick and Brian singer The guys who founded Rip curl, uh, super stoked for that The woman of the year is Sally Fitzgibbons. That s an incredible pick and our honor roll is gonna be Mike Hinson, So Keep your eyes peeled for a really cool piece of art that will be coming out. Uh, right around JUNE 1st And. Uh, we have our surfing walk of fame shirts that we d like to present to City Council, our city manager, City attorney, and, uh, our fire chief as well. So, if you guys would would join us, would you? Are you allowed to do that? Let s do it. Where ok? Oh, You. Very embarrassing. That Yeah. Thank you. Here. Right. We re gonna take a picture. We. Wanna. Thank you guys for for serving our city for doing all you do, uh, to make Surf City great, And, uh, we re thrilled. To be a part of our community. Thank you guys. Mm. All right. You ready? Right. Here we go. Yeah. Right here. Ok? Thank you guys. So About Thank you? We will move on to the next speaker. Oh, just a second. 00. You re just a by ok? Ok, go ahead. I want you all to be aware that Dan Kalm has had his lawyer serve me with the cease and desist letter threatening to sue me for millions. If I. Don