June 8, 2023
Central Library 9:00 a.m. to 3:00 p.m.
Facilitators: Carol Jacobs, Steve Mermell, Don White, and Mary Locey City of Huntington Beach
City Council Strategic Plan Workshop
Welcome from Mayor Strickland
2 Public Comments on Special Meeting Agenda
3 Opening Comments from City Manager Al Zelinka
4 Al Zelinka
City Manager
Consensus and direction from Council on our
future goals and priorities are needed due to
limited resources
Dedicated and professional staff are
committed to further the City Council's
priorities and achieve positive results for the
community
Workshop Facilitators
5 Public Sector Advisory
Agenda
6 Icebreaker exercise
HB by the numbers … in 10 minutes or less
City’s financial outlook
Review accomplishments, and key strengths,
challenges and opportunities
Context for goal and priority setting
Goal and priority setting
Wrap up and next steps
Today’s Objectives
7 Gain an understanding of the value of strategic
planning
Establish goals for the next five years
Identify priorities to achieve the identified goals
Strengthen teamwork
Workshop
Ground Rules
8 Listen to
understand
each other’s
point of view
Seek
consensus
Assume
good
intent
Speak up if we
need course
correction
Stay
focused
Time
Management Tool
Bike RackBike Rack
Items to discuss at a
later time
Icebreaker Exercise: Exploring the Commons
10 Talk to as many
colleagues as you
can in 10 minutes
Find one non-work-
related thing you
have in common
with each
Write it down
What did
you
learn?
Provides direction to the organization
Aligns everyone toward a common purpose
Creates opportunity to re-evaluate outdated goals and priorities Why strategic planning? Why Now?
Facilitate City
Council
Strategic
Planning
Workshop
Management
Partners drafts
Strategic Plan
based on input
and staff takes to
to Council for
adoption
Management
Partners and
staff create
Implementation
Action Plan
Overview of the Process
City Council
Interviews
City Manager and
Elected Officers
Interviews
Department
Director Focus
Group and Gap
Analysis
HB by the
numbers
HB By the
Numbers …
in 10 Minutes or
Less
• City incorporated in 1909
• Full-service Charter City under a Council-
Manager form of government (used by 97%
of California cities)
• 1,500 full- and part-time City employees
operating 12 departments
• 35+ Boards, Commissions, Committees led
by residents or Council Members
• $509M Operating Budget proposed
for FY23-24
• We are OneHB - Committed to responsive
and exceptional public service for all.
14 • ~200,000 residents
• 50,000 students in 50 high-performing public and
private elementary and high schools
• Home to Golden West College and near to UC
Irvine, CSU Long Beach, Chapman
• Over 10,000 businesses; 7,200 hotel rooms
• 11 million beach visitors annually
• 26.8 sq. mi. land area that includes 9.5 miles of
uninterrupted coastline
• Over 130 specific and special events annually
15 16
#1 Quality of City Services in the U.S. – WalletHub
2020
Best Beach in California – USA Today 2018
Best Cities to Live In – OC Register 2018-2022
Best City to Live In for People with Disabilities –
WalletHub 2021
Happiest City in America – Wallet Hub 2022
Sustainable Government of the Year - Sustain
OC 2016
An Exceptional Place
to Live, Work & Play
#3
#8
#9
#1
17 is Surf City USA® …
and So Much More
• U.S. Open of Surfing
• Surfer’s Hall of Fame
and Walk of Fame
• HB International Surf
Museum
• HB Art Museum
• AVP Pro Beach Volleyball
• Fourth of July Parade
and Fireworks
• Pacific Air Show
• Surf City Marathon
• Surf City Splash
• Surf City Nights
• Great Day in the Stoke
• Ice Skating on the Pier
• ISA World Surfing Games
• SoCal Corgi Beach Day
• OC Cherry Blossom
Festival
• Cars ‘N Copters on the
Coast
• Oktoberfest
• Concerts on the Beach
Builds and Maintains
Top Notch Amenities for All
• 79 parks/facilities
• 5 libraries
• 767 acres
• 208 beach acres
• 190 playgrounds
• 98 golf acres
18 19
• 77,143 households (2.56 average household size)
• 45.2% with a Bachelor’s Degree or higher
• 25.7% female-led households
• 22.4% speak another language at home
• 18.2% are seniors (65+ years)
• 16.2% foreign-born persons
• 10% lives with a disability
• 7.8% lives below the poverty level
• 5.9% civilian veterans
Huntington Beach is a community with diverse
backgrounds and needs
Year % of HB Residents
65 and Older
2013 14.9%
2014 15.3%
2015 15.6%
2016 16.1%
2017 16.8%
2018 16.9%
2019 17.6%
2020 18.2%
2021 18.2%
20 Median home values and gross rents rose 35% and 36%
from 2013 to 2021, respectively.
$624,400
$845,500
$519,600
$738,100
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021
Median Home Values
Huntington Beach Orange County
$1,559
$2,123
$-
$500
$1,000
$1,500
$2,000
$2,500
2013 2014 2015 2016 2017 2018 2019 2020 2021
Median Gross Rent
Huntington Beach
21 The City has 10,694 businesses representing diverse
industries; employment growth is projected to increase
8.9% from 2016 to 2045
• According to the SCAG Regional Growth Forecast Report, the City's employment growth is expected to increase 8.9% from 2016 to 2045.
• This increase is higher than in neighboring cities Newport Beach, Costa Mesa and Fountain Valley.
• Work distribution of all employees is currently 28% blue collar and 72% white collar.
• The top 4 industries (by number of jobs) in Huntington Beach include Manufacturing, Retail, Health Care/Social Services, and Accommodation/Food services.
22 Many corporate employers invest in HB, but HB small
businesses represent the majority of our businesses.
Major Corporate Employers Include:
The Boeing Company, Quicksilver, Cambro Manufacturing, Verizon, Hyatt, C&D Aerospace, Huntington Hospital, Fisher & Paykel, Rainbow Environmental Services, Home Depot, Huntington Valley Healthcare, Hilton, Cleveland Golf, Walmart
23 City staff continually plans and prepares to meet the needs of future generations
7.3% of FTE
Sampling of City Efforts:
• City Council Direction on Policy Development/Implementation • Plan for Historic Levels of Capital Improvements ($85M in FY22-23) and Innovative Community Programs
• Provide Citywide Training, Leadership Development (ELT/DLT), and Customer Service Excellence opportunities
• Biennial Quality of Life Community Survey
• Management Systems Review and Performance/Financial Audits • Prepare Ordinances, Resolutions, Process Maps; update 100+ Administrative Regulations
• BCC and City Council Meeting Management
• Special Project Delivery – from the Navigation Center to New Website • Secure Grant Funds to Pursue Projects and Programs
• Develop the Strategic Plan, Various Master Plans (e.g., Fire Stations, Mobility, Sustainability), and Infrastructure Report Card
PLAN & BUILD
24 Staff operates and maintains City services / infrastructure, which are critical to sustain the City’s excellent quality of life
92.7% of FTE
Sampling of the City’s Operations and Maintenance Efforts:
• 3.4 million square feet of landscape maintenance
• 41,360 calls for Police service
• 22,429 calls for Fire service; 7,588 Marine Safety water rescues • 18,000 business licenses in professional services (4,211), home based (4,324), retail, wholesale/manufacturing, non-profits, etc. • 12,000 public works service requests
• 11,139 building permits issued
• 4,500 code compliance cases
• 3,182 CPRAs processed
• 1,700 stormwater catch basins; 8.4 miles of channels
• 657 Certificates of Occupancy
• 611 mi. water mains and 316 mi. residential streets maintained
OPERATE & MAINTAIN
25 Staff operates and maintains City services / infrastructure, which are critical to sustain the City’s excellent quality of life Sampling of the City’s Operations and Maintenance Efforts (continued):
• 900,000 library materials circulated
• 85,000 meals for seniors
• 80,000 copies of the SANDS Recreation Guide delivered to households • 41,000 participants served through children’s programs and events • 38,000 recreational enrollments
• 6,754 passport applications
• 3,765 lights in parks, parking lots and streets
• 657 Certificates of Occupancy
• 79 parks maintained
26 The City is making strides on homelessness,
but it remains the highest priority for residents.
• City saw a 35% decrease in unsheltered homeless individuals between 2019 to 2022 following the opening of its Navigation Center in December 2020. • The City is actively working to remove barriers to help individuals transition to housing:
• Increase outreach/referrals to shelter and maximize Navigation Center housing and supportive services • Examine ways to redevelop the Navigation Center site to include supportive housing units • Maintain consistent quality of life enforcement plans • Continue providing supportive services to all residents, especially those who are homeless or at risk of becoming homeless:
• Street Outreach via the City’s Social Workers and Homeless Task Force • Be Well Mobile Crisis Response Program and Tenant Based Rental Assistance • Improve our community engagement and track data to audit our programs 27 • Less frequently used sources include City Council meetings (in person or online), bus shelter ads and street banners, City’s weekly newsletter, Daily Pilot, SurfCityBreak.com, HBTV Channel 3 Residents receive City information from a diverse range of sources – from word of mouth to online platforms and more Word of Mouth
City Mailers
SANDS
Resident Facebook Groups
City Website
City/PD NextDoor
Local TV News
Water Bill Notices
OC Register
City's Facebook
City's Instagram, Twitter, Youtube
405 Fwy Billboard
Local Radio
0% 10% 20% 30% 40% 50% 60% 70% 80%
Most Frequently Used Sources to Get Info on HB Programs, Events and Issues ?
Discussion
Any surprises? What stands out? Anything missing?
Overview of
the City’s
Financial
Outlook
Fiscal Outlook: FY 2023/24 General Fund Proposed Budget Review 30 Proposed FY 2023/24 General Fund Budget is structurally balanced, with a projected $3.6M surplus 30 * GF portion of Emerald Cove
settlement, of which 50% is being
transferred to the Section 115 Trust and
50% is being transferred to the General
Liabilities Fund
** Includes Debt Service, Capital
Expenditures, and Transfers
• Continued Infrastructure Investments in FY2023/24
General Fund transfer to the Infrastructure Fund increased by 11% to $15.0M CIP budget totals $41.2M (decrease from prior year due to $12.9M of HB Recovery projects and a $6.6M grant for Heil Pump Station in FY 2022/23)
General Fund (Fund 100)
(in thousands)
Proposed
FY 23/24
Revenues (recurring) $278,120
Revenues (one-time) * 2,276
Planned Use of Reserves (one-time) 8,804
Total Sources of Funds 289,200
Personnel Costs 181,585
Operating Costs 55,315
Non-Operating Costs ** 48,664
Total Expenditures 285,564
Surplus / (Deficit) $3,636
Fiscal Outlook: FY 2023/24 General Fund Budget
31 Fiscal Outlook: General Fund Long-Term Financial Plan
5.5% CalPERS Return FY22/23
32 (in thousands)
Actual
FY21/22
Projected
FY22/23
Proposed
FY23/24
Projected
FY24/25
Projected
FY25/26
Projected
FY26/27
Revenue (Recurring) $256,246 $273,293 $278,120 $283,950 $289,547 $295,399 Revenue (One-Time) - 29,607 2,276 - - -
Planned Use of Reserves - - 8,804 - - -
Total Sources of Funds $256,246 $302,900 $289,200 $283,950 $289,547 $295,399 Expenditures less UAL 234,277 251,031 267,288 265,363 269,122 272,018 CalPERS UAL 4,891 4,891 5,000 5,000 8,540 12,990
POB Payment 13,688 13,556 13,276 13,010 12,750 12,537
One-Time Expenditures - 18,135 - - - -
Total Expenditures 252,856 287,613 285,564 283,373 290,412 297,545 HB Recovery Reserves - (11,472) - - - -
Surplus/(Deficit) $3,390 $3,815 $3,636 $577 ($865) ($2,146) • Requires use of Section 115 Trust reserves starting in FY 2025/26 Fiscal Outlook: Pension Update
33 • CalPERS return in FY 20/21 was 21.3%:
CalPERS Funding level 102.8% vs. 76.7% funded
• CalPERS return in FY 21/22 was -7.5%:
Estimated CalPERS Funding level is 87.9%
• As part of our pension plan, the City also adopted an Unfunded Accrued Liability Pension Funding Policy, which mandates that we set-aside additional funds to payoff any new future pension debt • A $2.6 million transfer is included in the proposed FY 2023/24 budget to prefund pension liabilities via our section 115 Trust • Projections assume CalPERS earns 5.5% in FY22/23 and 6.8% going forward (CalPERS discount rate)
Years
CalPERS
Plan Return
1 Year -7.5%
5 Years* 6.7%
10 Years* 7.7%
20 Years* 6.9%
30 Years* 7.7%
* Based on original est. -6.1% return
2023 Quality of Life Survey
34 • Nearly 8 in 10 are happy with the quality of life in Huntington Beach and satisfied with the job the City is doing providing City services.
• Homelessness, cost of housing and living are first order concerns; followed by property crimes and speeding and unsafe driving.
• Two-thirds are satisfied with City services.
• Particularly high satisfaction with water reliability, fire protection and paramedic services, special events, library services, and 911 emergency response. • Residents value local beaches and prioritize improving them including: the safety, cleanliness and maintenance of beach bathrooms; providing separated paths for walking from biking, skateboarding and scooters; and improving safety in general. 2022 Workplan
and H-Item
Outcomes
2022 Strategic Plan Outcomes
Refer to Briefing Book Attachment D
36 54 Strategic Plan Objectives
29 Objectives
Completed
20 Objectives
In Progress
Sample Accomplishments:
E-bike speed sign installation, targeted
enforcement, provided e-bike education
to students and a pilot e-bike registration
program at Marina High.
Launch the Town Hall series in different
neighborhoods
Developed a program for concerts at the
beach with LiveNation
Pursuing efforts to host LA2028
Developed a volunteer program for
homeless services
Historic investments in capital
improvement projects ($85M in 2022-23)
2022 H-Item Outcomes
Refer to Briefing Book Attachment D
37 25 Approved H-Items
16 H-Items
Completed
9 H-Items
In Progress
Sample Accomplishments:
Developed an updated Coyote
Management Plan
Established a memorial for Officer Vella
Expanded TBRA to Mobile Home Park
seniors
Provided an extensive report on
homelessness and a 90-day plan
Gathered additional feedback on efforts
to redevelop Downtown; reopened Main
St. to vehicular traffic.
Presented a report on crime statistics and
enforcement activities
Accomplishments, Strengths, Challenges,
and Opportunities
38 Some Key
Accomplishments
Cited by
Councilmembers
39 • Reopened Main Street to vehicles
• Kept the Pacific Air Show in HB
• Launched the Navigation Center and Be Well
Mobile Crisis Response Program
• Adopted anti-camping laws
• Completed a record number of capital
improvements
• Began developing Master Plans for mobility
and sustainability
• Installed Mobi Mats to provide beach access
for those with disabilities or mobility concerns
• Hired new Police Chief and City Manager
• Approved new contract to improve retention
and recruitment of police officers
• Adopted business-friendly code amendments
to reduce levels of review
Key Strengths
Big city – small town feel
Great weather and
environment
Destination city for
tourism
Numerous amenities (e.g.,
parks, pools and
playgrounds)
Teamwork amongst City
staff
Low crime rates
40 Key Challenges
Fiscal Stability
Loss of local control
Economic
Development
Housing
Infrastructure needs
Homelessness
Public engagement
41 Key Opportunities
Enhance public engagement
Strengthen the City's fiscal position
Focus on infrastructure
Pursue economic development opportunities
Fill key vacancies
Establish clear priorities
42 Goal Setting
43 Goal
Setting
44 We can’t
do
everything
But we can do
some things very
well if we are
focused
Successful City Governments
• Respect the ongoing work of City departments as the
day-to-day operations must be well managed; that takes
time
• Have a collaborative, trusting relationship between the City Council and staff
• Set a few goals, with a staff work plan to achieve them
How
Management
Staff Allocate
Their Time
45 85%
5%
5% 5%
Management’s Time
Providing day-to-day municipal services
Unforeseen challenges
New initiatives
Strategic improvements and training
“Big Rocks”
46 Don’t fill up the bucket
with so many small
rocks that there isn’t
room for the big ones
Put the big
rocks in first
Then add the small
ones where there is
room
Today’s Process:
Council
Discussion and
Consensus on
Top Goals and
Priorities
47 Review potential goals as identified
through Council member interviews
Council confirmation of goals
Council dot voting to determine top
priorities
Staff to develop strategies to
implement priorities and further
Council's goals
Top Council
Goals as
Identified During
Interviews
48 Fiscal stability
Public
engagement
Housing
and homeless
Infrastructure
investment
Create a high
performing
organization
Public safety
Proposed
Priorities
1. Fiscal Stability
Ensure sufficient funding to support
programs, services, and capital
investments
Undertake a new cost of service (fee) study and cost
allocation plan
Update Developer Impact Fees to ensure new
development is paying its fair share
Implement centralized contract management system
Develop a long-term vehicle replacement plan
Review General Fund reserve levels using the Government Finance Officers Association Risk Analysis Template
Consider options for new revenues
Restart Transient Occupancy Tax (TOT), Utility User Tax, and lease concession audits
Proposed
Priorities
2. Public Engagement
Provide the community with clear,
accurate and timely information
and easy access to municipal
services
Implement a 311 system to manage and track calls for
various municipal services
Redesign the City’s website to improve usefulness and user experience
Enhance capacity of HBTV by hiring a production officer, building out a studio and expanding programming
Hire a graphic designer to design, brand and deliver more visual content
Expand community outreach efforts through neighborhood
town halls, direct mailers and videos
Create an open data platform for residents to access
information from the city
Proposed
Priorities
3. Housing and Homeless
Implement programs to
address homelessness and the need
for affordable housing in
Huntington Beach
Explore options to collaborate with faith-based and community-based organizations, the City’s HB Cares volunteer program, CalOptima and others to provide social services at minimal cost to the City Take actions to maintain local control of land-use planning Study the feasibility of expanding the Navigation Center to include supportive housing
Work with property owners to extend, where possible, affordable rental covenants on the 319 units set to expire in the next five years Pursue opportunities to develop affordable housing through use of the Low and Moderate Income Housing Asset Fund
Proposed
Priorities
4. Infrastructure
Investment
Maintain, repair, and replace the
City’s infrastructure
Provide world-class beach facilities, including the renovation and expansion of 15 beach restrooms, new lighting,
improvements for Pier Plaza access, security and programming PCH relinquishment enhancements including landscape and trees, traffic calming measures, additional bike paths, and off-street parking
Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial strategy
Complete major CIPs including Sand Replenishment, Bluff Stabilization, Greer Park Storm Drain & Park Improvements, Mobility and ADA Transition Plan Improvements
Conduct water, sewer and trash rate studies to bring rates to appropriate levels
Undertake major planning efforts including Fleet Capital Replacement Plan, Mobility Master Plan and Infrastructure Report Card
Proposed
Priorities
5. Create a
High Performing
Organization
Focus on excellent customer
service and an engaged workforce
Fill department director and other key vacancies
Implement the Public Service Excellence Initiative based on NorthStar's customer service assessment
Restructure the City’s Boards, Commissions, and Committees (BCC) Explore new learning management systems to offer a more comprehensive and innovative employee training program
Establish a one-stop-shop to consolidate development and frequently used services in one location to improve customer service
Conduct financial and performance assessments of each department over the next four years
Launch TrakStar, a web-based performance evaluation system foremployees Select a new third-party administrator for workers compensation Proposed
Priorities
6. Public Safety
Provide world class public safety to
our residents and visitors
Community-wide comprehensive risk reduction strategy (optimize emergency response)
Self-Contained Breathing Apparatus (SCBA) replacement
Police department software updates (jail management, First Due, Paragrine, CAD/RMS)
Fire department fleet replacement program
Police department remodel projects (dispatch center, communications center, women’s locker room, traffic unit)
Mobile integrated health program
Fire department community risk reduction (engagement coordinator, opioid prevention, targeted risk reduction campaigns)
Fire department emergency response staffing to meet 92% increased call volume
Discussion of
Draft Goals and
Priorities
Review goals and priorities
Is anything missing?
Is there anything that
should not be there?
Dot Voting
56 Priority ranking
• Match colored dots with dot
color on goal posters
• Three dots per goal
• Place a dot next to what you
believe to be a priority
• More dots per priority equal a
higher priority for staff to address
• Final results will be summarized
after our break
Review
Identified
Priorities
57 • Placeholder - will fill in
results during break
Next Steps and Staying on Track
58 Commitments
from Staff
59 Using the goals and priorities
established by Council, staff will
prepare a strategic plan
Implement programs, projects and
activities to advance Council priorities
consistent with budget, staffing, and
workloads
Provide professional non-political
advice
Staying on
Track with
Goals
60 Regular
progress
reporting
Hold off on new
Council initiatives until
next goal setting cycle
or mid-cycle in the
two-year budget
City Council Requests – H Items
Divert staff from pursuing the Council's adopted strategic goals i.e., small rocks • Often significant staff time is involved in following up on requests from Councilmembers Are best handled in one-on-one meetings with the City Manager • Who can advise about the level of effort involved
• Can gather information and conduct analysis to support informed decision-making • Identify whether the request falls within an existing workplan or can be added When considering Councilmember requests
• Is there an existing board or commission to which the matter can be directed? • Does the request fall under an existing Strategic Plan goal? • Is the level of effort involved such that full Council direction is warranted in the first instance? 61 Best Practice
Criteria for
Adding
Initiatives and
Projects
Mid Cycle
62 Emergency (natural
disaster, pandemic,
civil unrest)
New outside
funding
opportunity that is
time sensitive
New multi-agency
opportunity that
cannot be delayed
Community safety
issue that must be
addressed in near
term
Changes in laws or
mandatesOtherwise wait until
next priority-setting
process
What comes off the
plate if something
goes on?
What are the
consequences of
shifting direction
mid way?
Next Steps
63 Baker Tilly to
provide written
workshop report
City staff to prepare
draft strategic plan
for City Council
approval
Baker Tilly to
provide a template
for an
Implementation
Action Plan
Implementation
Action Plan
Includes
64 • Council established goals
• Council established priorities
• Objectives to further the priorities
• Timeline (start and completion dates)
• Resources needed and currently
available (and sources)
• Staff assigned (including lead person)
• Milestones
Next Steps by
City Staff
65 Next Steps in the 2023-27 Strategic Planning Process:
1. June/July 2023 – City Staff will prepare a final draft of the Strategic Plan and Implementation Plan
2. August 2023 – Study Session with City Council to
review the draft Strategic Plan and Implementation
Plan for feedback
3. September 2023 – Present the final Strategic Plan and Implementation Plan for City Council adoption.
Closing
Comments
66 Please share one
comment about what
was useful about
today’s discussions
Evaluation Form
67 Please take a moment to
complete the workshop
evaluation form
Steve Mermell | [email protected]
Carol Jacobs | [email protected]
Don White | [email protected]
Mary Locey | [email protected]
Thank you!