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Signal Hill City Council
February 25, 2025

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February 25, 2025
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Signal Hill City Council
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2175 Cherry Avenue • Signal Hill, California 90755-3799

CITY OF SIGNAL HILL

THE CITY OF SIGNAL HILL

WELCOMES YOU TO A REGULAR

CITY COUNCIL MEETING
February 25, 2025
The City of Signal Hill appreciates your attendance. Citizen interest provides the Council and Agency with valuable information regarding issues of the community. Meetings are held on the 2nd and 4th Tuesday of every month.

Meetings begin at 6:00 pm with the conduct of any business permitted to be conducted in closed session by the Brown Act (Government Code Section 54950, et seq.), if any, and with the public portion of the meeting beginning at 7:00 pm. There is a period for public comment on closed session matters at 6:00 pm prior to the closed session. In the event there is no business to be conducted in closed session, the regular meeting shall begin at 7:00 pm.

There is a public comment period at the beginning of the regular meeting. Any person wishing to comment shall be allotted three minutes per distinct item. Any meeting may be adjourned to a time and place stated in the order of adjournment.

The agenda is posted 72 hours prior to each meeting on the City’s website and outside of City Hall. The agenda and related reports are also available for review online at www.cityofsignalhill.org.

To view the meeting live at 7:00 p.m.:
• City of Signal Hill website at www.cityofsignalhill.org, select the City Council Meetings Link from the home page.
• Charter Spectrum Channel 74 or Frontier FiOS Channel 38.

To participate during the regular meeting at 7:00 p.m.:
• In-person Participation: Council Chamber of City Hall, 2175 Cherry Avenue, Signal Hill, California.
• To make a general public comment or comment on a specific agenda item, you may also submit your comment, limited to 250 words or less, to the City Clerk at [email protected] not later than 5:00 p.m. on Tuesday, February 25, 2025.

Written comments will be provided electronically to City Council and attached to the meeting minutes. Written comments will not be read into the record.

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City Council Regular February 25, 2025
City Council Members are compensated $794.40 per month. City Clerk and City Treasurer are compensated $482.04 per month.
(1) CALL TO ORDER – 7:00 P.M.
(2) ROLL CALL

MAYOR JONES

VICE MAYOR HANSEN

COUNCIL MEMBER COPELAND

COUNCIL MEMBER HONEYCUTT

COUNCIL MEMBER WOODS
(3) PLEDGE OF ALLEGIANCE
(4) PUBLIC BUSINESS FROM THE FLOOR ON ITEMS NOT LISTED ON THE AGENDA (SPEAKERS WILL BE GIVEN THREE MINUTES FOR EACH DISTINCT ITEM) (5) PRESENTATIONS
a. A STUDENT REPRESENTATIVE FROM ALVARADO ELEMENTARY SCHOOL

WILL PARTICIPATE IN THE CITY COUNCIL MEETING BY LEADING THE

PLEDGE OF ALLEGIANCE AND CEREMONIOUSLY PRESIDING OVER THE MEETING WITH THE GAVEL. MAYOR JONES WILL THEN RECOGNIZE THE STUDENT.
b. MANAGEMENT ASSISTANT ALYSSA CHRISTENSON WILL PROVIDE A

PRESENTATION REGARDING SCHEDULED PROGRAMMING TO
COMMEMORATE YOUTH ART MONTH.
c. ACTING ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR

SIAMLU COX WILL INTRODUCE DEBBIE PACHECO, ACCOUNTING
MANAGER.
d. MAYOR KEIR JONES WILL PRESENT A PROCLAMATION TO KIM BOLES,

ASSISTANT CITY CLERK, FOR HER SERVICE AND DEDICATION TO THE CITY OF SIGNAL HILL AND RECOGNIZE HER RETIREMENT.
(6) PUBLIC HEARINGS
a. PUBLIC HEARING TO CONSIDER CONDITIONAL USE PERMIT 23-02 ALLOWING A CHURCH USE ON PROPERTY LOCATED AT 3300 EAST

WILLOW STREET WITHIN THE COMMERCIAL INDUSTRIAL (CI) ZONING

DISTRICT AND FINDING THAT SAID ACTION IS CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
PURSUANT TO STATE CEQA GUIDELINES SECTION 15301
Summary:

Form of Notice: The City published the notice in the Signal Tribune newspaper pursuant to Government Code §65091(a)(4) on February 14, 2025, mailed the

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City Council Regular February 25, 2025
notice to property owners within a 300-foot radius of the subject site on February 14, 2025, and posted the notice in accordance with Signal Hill Municipal Code Section 1.08.010 at City Hall, Signal Hill Library, Reservoir Park, and Discovery Well Park on or before February 14, 2025.

The applicant, Robert Chavez, is requesting approval of a Conditional Use Permit for a church use on property located at 3300 East Willow Street. The church proposes to offer services Tuesdays through Fridays consisting of bible study, marriage/family support, music/vocal classes, small group meetings, young adult meetings, and substance/anger management Groups. Group service hours begin at 6:00 p.m. The church also offers weekly worship services on Wednesdays at 7:00 p.m. and Sundays at 9:00 a.m. and 11:00 a.m., which the City considers off-peak business hours when the surrounding businesses are closed. The request also includes application of Assembly Bill (AB) 2097, which would allow parking relief from the Signal Hill Municipal Code (SHMC) required off-street standards; the project qualifies because it is located within half mile of public transit as defined by AB 2097. The Planning Commission recently reviewed the application and recommended approval.

Strategic Plan Goal(s):

Goal No. 3: Economic and Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.

Recommendation:

Adopt a resolution approving Conditional Use Permit 23-02 allowing a church use, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 23-02 ALLOWING A CHURCH USE AT 3300 EAST WILLOW STREET WITHIN THE COMMERCIAL

INDUSTRIAL (CI) ZONING DISTRICT AND FINDING THAT SAID ACTION IS

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PURSUANT TO STATE CEQA GUIDELINES SECTION 15301.
(7) CITY MANAGER REPORTS
a. CITY COUNCIL WORKSHOP TO DISCUSS WATER RATES AND A
PROPOSED $3 MILLION DOLLAR INTERFUND LOAN FROM THE GENERAL

FUND TO THE WATER ENTERPRISE FUND
Summary:

The 2023-2028 City of Signal Hill Strategic Plan identifies updating the Water Master Plan (WMP) and Water Rate Study as key Fiscal Year 2024-2025 initiatives. In December 2023, the City entered into a professional services

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City Council Regular February 25, 2025
agreement with Dudek to assist with preparing the WMP and Rate Study. On December 10, 2024, the City Council appointed a Water Rate Subcommittee to review the WMP and associated Capital Improvement Projects (CIP), evaluate various rate structures, and assess the reserve policy. The Subcommittee’s role is to evaluate the Water Department’s current and projected costs based on the results of the WMP and Rate Study and consider the optimal rate structure to support ongoing operations and capital projects for the next five years. The proposed rate adjustment would increase the average monthly water bill by $5.87 per month for the first year. Including the proposed adjusted water rate, the City’s average monthly bill would remain 30% lower than the City of Long Beach.

Throughout this report, staff notes the need to adjust rates given various considerations such as the cost of water and deferred capital project improvements. While the City has increased water rates during the prior rate study period which lasted from 2019 to 2024, there was an 11-year period (from 2004-2015) where the City increased water rates by 13 percent, or approximately one percent per year. Because the City’s historical water rate increases have not kept up with capital costs, there is a need to adjust water rates for the upcoming five-year period, which includes $17.3 million in critical capital projects necessary to provide the community with potable water.

The Water Rate Study evaluated the five-year capital needs of the Water Department while also considering the community’s ability to pay for essential water services. The option recommended by the Water Rate Subcommittee would enable the Water Department to fully fund its operating, capital, reserves, and debt service through a five-year rate adjustment without the need to issue new debt. Of the options discussed with the Subcommittee, the Self-Funded option (Option 1) provides the Water Department with the greatest opportunity to fund capital projects, pay off its debts, and establish a reserve fund to manage variances in water consumption and other factors.

The Public Works Department will conduct a workshop to present the Water Master Plan and three rate adjustment options reviewed by the Subcommittee and obtain feedback from the City Council and the community regarding the proposed rate adjustments. Following the workshop, the City Council will provide direction regarding the preferred rate adjustment and set a date for the subsequent Proposition 218 hearing.

Strategic Plan Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.

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City Council Regular February 25, 2025
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.

Recommendations:

1. Provide City staff with direction regarding potential adjustments to water rates.

2. Authorize the Public Works Department to post the Draft Water Master Study on the City’s website to facilitate feedback from the community as part of an upcoming Community Workshop.

3. Direct staff to prepare a Resolution to set a date to conduct Proposition 218 Protest Hearing.

4. Authorize the Mayor to execute an Inter-Fund Loan Agreement between the City’s General Fund and Water Enterprise Fund for $3 million at three percent interest rate including a 20-year payment term, to fund the Gundry Reservoir Roof Replacement and Rehabilitation Project. This proposed agreement would mirror a similar agreement approved by the City Council on February 14, 2023, for the same project.

5. Adopt a resolution, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL,

CALIFORNIA, APPROVING A LOAN IN AN AMOUNT NOT TO EXCEED $3,000,000 FROM THE GENERAL FUND TO THE WATER FUND
b. ADOPT RESOLUTIONS AUTHORIZING THE EXECUTION OF AN

AFFORDABLE HOUSING AGREEMENT AND LOAN AGREEMENT (AHA)

WITH NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL

CORE) FOR THE WALNUT BLUFF WORKFORCE HOUSING PROJECT,

AUTHORIZING THE CITY MANAGER TO EXECUTE ALL TRANSACTIONAL

DOCUMENTS REQUIRED TO COMPLETE THE AGREEMENT AND
APPROPRIATING $6,550,000 THEREFORE
Summary:

Staff negotiated and is bringing forth the terms of an Affordable Housing and Loan Agreement (AHA) by and between the City, Housing Authority, and National Community Renaissance of California, a California nonprofit public benefit corporation (National CORE). The AHA supports efforts to build the Walnut Bluff Affordable Housing Project, located on a two-acre property, at the northwest corner of East Willow Street and Walnut Avenue, consisting of approximately 83 affordable homes for individuals and families earning below 80% of the area median income (AMI).

As noted, the City and the Housing Authority collectively have access to multiple sources of funding (totaling approximately $10 million) that can only be utilized

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City Council Regular February 25, 2025
for the development of affordable housing. Based on the proforma prepared by National CORE, the City and Housing Authority’s recommended loan for the Walnut Bluff Affordable Housing Project is approximately $6.55 million.

Execution of the proposed Affordable Housing Agreement and Loan Agreement (AHA) supports multiple strategic goals, including creating more affordable housing opportunities.

Staff recommends the City Council and Housing Authority Board adopt the Resolution approving the AHA between the City of Signal Hill, the Signal Hill Housing Authority, and National CORE substantially in the form presented for the development of the Walnut Bluff Workforce Housing project and appropriating funds therefore.

Strategic Plan Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Goal No. 3 Economic Development: Improve the local economy, support local businesses, and create a vibrant downtown core.

Goal No. 4 Infrastructure: Maintain and Improve the City’s physical infrastructure, waste system, and recreational spaces.

Recommendations:

1. City Council adopt a resolution, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL

HILL, CALIFORNIA, AUTHORIZING THE EXECUTION OF AN

AFFORDABLE HOUSING AGREEMENT AND LOAN AGREEMENT
(AHA) WITH NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL CORE) FOR THE WALNUT BLUFF WORKFORCE

HOUSING PROJECT, AUTHORIZING THE CITY MANAGER TO

EXECUTE ALL TRANSACTIONAL DOCUMENTS REQUIRED TO
COMPLETE THE AGREEMENT AND APPROPRIATING $6,550,000

THEREFORE

2. City Council approve the Appropriations from the various funding sources not-to-exceed $1,550,000 as follows:
a. Affordable Housing In-Lieu Fees: $745,419
b. Deferral of Impact Fees: $500,000
c. Permanent Local Housing Allocation Program: $304,581

3. Housing Authority adopt a resolution, entitled:

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF

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City Council Regular February 25, 2025

SIGNAL HILL, CALIFORNIA, AUTHORIZING THE EXECUTION OF AN

AFFORDABLE HOUSING AGREEMENT AND LOAN AGREEMENT
(AHA) WITH NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL CORE) FOR THE WALNUT BLUFF WORKFORCE

HOUSING PROJECT, AUTHORIZING THE CITY MANAGER TO

EXECUTE ALL TRANSACTIONAL DOCUMENTS REQUIRED TO
COMPLETE THE AGREEMENT AND APPROPRIATING $6,550,000

THEREFORE

4. Housing Authority approve the appropriations from the various funding sources not-to-exceed $5,000,000 as follows:
a. Housing Authority Land Loan: $3,250,000
b. Housing Authority Funds: $1,750,000
c. RESOLUTION AUTHORIZING APPROPRIATIONS FROM THE FISCAL YEAR 2023-24 GENERAL FUND OPERATING POSITIVE FUND BALANCE;

CURRENT YEAR APPROPRIATION ADJUSTMENTS AND CAPITAL
IMPROVEMENT PLAN BUDGET AND RELATED FUNDING; TRANSFERS
FOR CAPITAL IMPROVEMENT PLAN PROJECTS; AMENDING THE FISCAL YEAR 2024-2025 BUDGET
Summary:

Staff presented the Annual Comprehensive Financial Report (ACFR) findings for Fiscal Year 2023-24 at the December 10, 2024, City Council meeting. The ACFR highlighted a General Fund operating positive fund balance of approximately $11 million, which is a combination of revenues which came in higher than projected and operational savings. Staff recommends a proportional share distribution of the positive fund balance towards projects, programs, and reserves, further reinforcing the City's commitment to prudent fiscal management. The City’s General Fund reserve target is estimated to be at approximately 81% of the current year FY 2024-25 adopted budget expenditures after netting out all proposed appropriations. This report will provide an overview of the financial results and a detailed list of proposed positive fund balance appropriations towards reserve allocations and other critical program, operational, and project needs.

Strategic Plan Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Goal No. 2 Community Safety: Maintain Community Safety by supporting public safety services and increasing emergency preparedness.

Goal No. 3 Economic and Downtown Development: Improve the local economy, support local businesses, and create a vibrant

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City Council Regular February 25, 2025
downtown core.

Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.

Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.

Recommendations:

1. Approve the proposed appropriations and reserve transfers from FY 2023-24 to FY 2024-25 operating budget and reserve balances, utilizing the current FY 2023-24 General Fund operating positive fund balance of $11,092,416.

2. Adopt a resolution, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL,

CALIFORNIA, AUTHORIZING APPROPRIATIONS FROM THE FISCAL
YEAR 2023-24 GENERAL FUND OPERATING POSITIVE FUND BALANCE,

CURRENT YEAR APPROPRIATION ADJUSTMENTS, AND CAPITAL

IMPROVEMENT PLAN BUDGET AND RELATED FUNDING TRANSFERS,
AND AMENDING THE FISCAL YEAR 2024-25 BUDGET
d. FISCAL YEAR 2024-25 MID-YEAR BUDGET REVIEW
Summary:

The City Council will conduct a mid-year budget review regarding the City’s financial position based on the first six months of the fiscal year as of December 31, 2024, and consider adopting a resolution approving proposed budget adjustments. The proposed changes to the current fiscal year budget include proposed reclassifications of existing appropriations in the Vehicle and Equipment Fund, Capital Improvement Program Fund, Special Revenue funds, Water Fund and the General Fund.

Strategic Plan Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Goal No. 2 Community Safety: Maintain Community Safety by supporting public safety services and increasing emergency preparedness.

Goal No. 3 Economic and Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.

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City Council Regular February 25, 2025
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.

Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of city services.

Recommendation:

Adopt a resolution, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL,

CALIFORNIA, AUTHORIZING MID-YEAR BUDGET APPROPRIATIONS AND AMENDING THE FISCAL YEAR 2024-25 ANNUAL OPERATING AND
CAPITAL BUDGET.
(8) CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and non-controversial. Items will be acted upon by the Council at one time without discussion. Any item may be removed by a Council Member for discussion. a. FEE WAIVER REQUEST FOR THE WOMEN OF DISTINCTION EVENT Summary:

The City Council will consider a waiver request from the Office of California’s 69th State Assembly District, represented by Assemblymember Josh Lowenthal for facility fees and staff waiver to host the Women of Distinction event, to be held at the Signal Hill Public Library Terrace on Friday, March 28, 2025, from 4:00 p.m. to 6:00 p.m.

Strategic Plan Goal(s):

Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.

Recommendation:

Staff recommends the City Council approve the request submitted by the Office of the 69th State Assembly District to waive facility fees and staff time for use of the Signal Hill Library Terrace.
b. RESOLUTION AMENDING THE CLASSIFICATION AND COMPENSATION PLAN
Summary:

As part of the Fiscal Year 2024-2025 Operating Budget, the City Council authorized a part-time Code Enforcement Officer position. Over the past several months, the City has recruited for the position but has not successfully identified

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City Council Regular February 25, 2025
a suitable part-time candidate. After carefully discussing and considering options, staff believes the community would be best served by a full-time Code Enforcement Officer to enable the City to meet growing service demands in this area. Staff recommends these changes to enhance service for residents and businesses; the proposed changes are supported by ongoing revenues. With City Council approval of the proposed class specification, staff would proceed with the recruitment of a full-time position. The City’s total Full-Time Equivalent (FTE) positions would thereby increase from 128.75 in Fiscal Year 2024-2025 to 129.25 FTE. The proposed appropriation for this reclassification is included as part of the mid-year budget adjustment; staff would subsequently include this position as part of the in Fiscal Year 2025-2026 Operating Budget. The City would also update its class specification to include this position within the Community Development Department.

Strategic Plan Goal(s):

Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.

Recommendation:

Adopt a resolution, entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL,

CALIFORNIA, AMENDING THE CLASSIFICATION PLAN TO INCLUDE A

FULL-TIME CODE ENFORCEMENT OFFICER
c. SCHEDULE OF INVESTMENTS AND MONTHLY TRANSACTION REPORT Summary:

The Schedule of Investments is a listing of all surplus funds invested for both the City and the Successor Agency to the former Signal Hill Redevelopment Agency as of the date shown in the report. The monthly transaction report provides a list of the changes in investments for the prior month.

Strategic Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Recommendation:

Receive and file.
d. WARRANT REGISTER DATED FEBRUARY 25, 2025
Summary:

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City Council Regular February 25, 2025
The Warrant Register is a listing of all general disbursements issued, since the prior warrant register, and warrants to be released upon City Council approval.

Strategic Plan Goal(s):

Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.

Recommendation:

Authorize payment of the Warrant Registers dated February 25, 2025. e. APPROVAL OF MEETING MINUTES
Summary:

Regular Meeting of February 11, 2025.

Strategic Plan Goal(s):

Goal No. 5. High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.

Recommendation:

Approve the meeting minutes.
(9) COUNCIL AGENDA--NEW BUSINESS

COUNCIL MEMBER WOODS

COUNCIL MEMBER HONEYCUTT

COUNCIL MEMBER COPELAND

VICE MAYOR HANSEN

MAYOR JONES
(10) ADJOURNMENT
Tonight’s meeting will be adjourned to the next regular meeting of the Signal Hill City Council to be held on Tuesday, March 11, 2025, at 7:00 p.m., in the Council Chamber of City Hall, 2175 Cherry Avenue, Signal Hill, CA 90755.

CITIZEN PARTICIPATION
Routine matters are handled most quickly and efficiently if contact is made with the City department directly concerned. However, if you would like to request that a matter be presented for City Council consideration, you may do so by writing to the City Council, City Clerk, or City Manager. The deadline for agenda items is 12 noon on the Tuesday preceding the Council and Agency meetings. The complete agenda, including back up materials is available on the City website on the Friday preceding the meeting.

If you need special assistance beyond what is normally provided to participate in City

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City Council Regular February 25, 2025
meetings, the City will attempt to accommodate you in every reasonable manner.

Please call the City Clerk's office at (562) 989-7305 at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible.

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