HomeMy WebLinkAbout01 - MinutesFebruary 14, 2017
Agenda Item No. 1
CITY OF NEWPORT BEACH
City Council Minutes
Planning Session (Special Meeting)
January 14, 2017
1. WELCOME - 9:00 a.m.
Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
2. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Bill Dunlap led the Pledge of Allegiance.
Jim Mosher commended the City Council for setting goals, but su ed a longer vision for Newport Beach,
such as a 110 -year plan.
FISCAL PICTURE UPDATE
Finance Director Matusiewicz provided a PowerPoint presentation outlining the FY 2015-16 year-end
revenues, including property tax, sales tax and Transient Occupancy Tax (TOT).
In response to Council Member Dixon's questions, Finance Director Matusiewicz reported that the City
receives 16¢ on the dollar of the 1% property tax. He anticipated minimal impact from the reduction of sales
tax.
Finance Director Matusiewicz explained the General Fund and reported that it ended with a $10 million
surplus. He presented the budget preparation cycle and discussed budget challenges, including pension
funding and Seawall and Harbor Master Plan.
In response to Council Member O'Neill's question, Finance Director Matusiewicz explained general liabilities
and the $1.5 million shortfall.
Council Member Dixon discussed the Capital Improvement Program (CIP) and anomaly of only $5 million of
the $60 million coming from the General Fund.
City Manager Kiff explained the impact of the Ca1PERS discount rate change and range of alternatives for
payment on unfunded liability. Finance Director Matusiewicz stated the public could access presentations the
Finance Committee received on pension issues at newportbeachca.gov/pensions.
Council Member O'Neill requested information on employee contributions. City Manager Kiff stated the
employees paid $9 million of the $40 million. Council Member O'Neill emphasized that $8 million of the $15
million in normal costs were paid by the employees.
Council Member Dixon stated the pension expenses represented 16.34% of operating expenses. City Manager
Kiff stated it was approximately 11% or 12% in 2012. He reminded Council that the City voluntarily increased
its percentage with the Fresh Start program. City Manager Kiff highlighted Harbor needs and possible
allocations, and indicated the City was in good shape, but provided recommendations regarding pension
funding. He also discussed the case in Marin County requiring reasonable pensions for employees.
In response to Mayor Muldoon's question, City Manager Kiff discussed repair and/or replacement of a portion
of seawall on Collins Island and the placement of a 6 -inch cap on the south side of Bayfront, both items were
included in the budget, and the need to plan for future repairs. Mayor Muldoon suggested setting aside surplus
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City of Newport Beach
Planning Session (Special Meeting)
January 14, 2017
for future seawall repairs and asked how to budget for the future. City Manager Kiff agreed with his
suggestion to set aside $5 million now, and add $1 million each year for the next 15 years. He suggested an
incremental change in height, if necessary.
Nancy Skinner asked if the surplus was different from reserves. City Manager Kiff explained that reserves
were the amount set aside for emergencies and surplus was annual savings.
Dennis Baker asked if there were Federal funds available for the seawall repairs. City Manager Kiff indicated
that staff continues to look for funds for seawall repair.
George Schroeder discussed the projected Ca1PERS rates and City's contribution. He expressed concern with
capital improvements being impacted due to unfunded pension liability.
Nancy Gardner suggested planning for sea level rise for ocean facing properties, not just bay residences.
Lee Pearl discussed potential funding for seawall improvements and offered to work with the City on Federal
and State funding sources.
Brian Ouzounian suggested the City hire a consultant to fundraise for seawall repairs on Balboa Island.
Jim Mosher expressed concern about the public's understanding of and ability to track the City's financial
state and suggested warrants and claims be more visible to the public. He questioned whether the Enterprise
Resource Program (ERP) would allow the public to review the budget line items. He asked what transparency
and visibility would be coming in the next year. City Manager Kiff discussed the status of the ERP and
software that would allow data analysis.
4. RECESSED/RECONVENED
Mayor Muldoon recessed the meeting at 10:00 a.m. and reconvened the meeting at
10:20 a.m. with all members of the City Council present.
5. PENDING CAPITAL AND OTHER PROJECTS
Public Works Director Webb utilized a PowerPoint presentation to highlight the major projects under
construction, projects nearing construction, projects in design, and projects planned for next fiscal year.
Mayor Muldoon requested thets associated with the projects. Council Member O'Neill reminded residents
that the costs could be found in the FY 2015-16 CIP program document.
In response to Bob McCaffrey's question, Public Works Director Webb discussed replacement of the Corona
del Mar library and fire station facilities.
Council Member Dixon asked about the loss of parking from the Banning Ranch project. Public Works Director
Webb confirmed that parking needs to be addressed through the use of Lower Sunset View Park.
In response to Council Member O'Neill's question, Public Works Director Webb explained that potable water
was funded through water utility.
In response to Council Member Dixon's question, Public Works Director Webb discussed the replacement of
street signs.
Public Works Director Webb discussed possible projects for next fiscal year and during the FY 2017-18 CIP.
Council Member Herdman discussed the project list and limitations on completing all projects.
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January 14, 2017
Council Member Avery asked if the Central Avenue pier could be completed prior to summer. Public Works
Director Webb stated the permitting process had been difficult, but the goal was to complete the pier by
summer. He also discussed the boat sizes that would be able to utilize the pier.
In response to Council Member Peotter's question, City Manager Kiff explained the Facilities Finance Plan
(FFP) and review by the Finance Committee. Council Member Peotter discussed traffic in the City and
suggested the issue be managed by a single director to advocate for transportation improvement. He suggested
the 2% development fee, that is currently dedicated for art, be used for traffic improvements.
Mayor Pro Tem Duffield expressed enthusiasm for harbor improvements.
Council Member Herdman encouraged involving the Balboa Island residents and merchants' association in
any modification on Balboa Island.
Council Member Avery urged continued efforts for the West Coast Highway Landscape Rehabilitation project.
Community Development Director Brandt utilized a PowerPoint presentation to review the certification of the
Local Coastal Program (LCP_, Mariners' Mile Master Plan, and planning projects under construction).
In response to Mayor Muldoon's question, Community Development Director Brandt discussed the process to
update the General Plan, including community input.
Council Member Dixon asked about the timeline if the General Plan Update were to go before the voters.
Community Development Director Brandt clarified that voter approval was only required if there was a change
in City's land use intensities and densities.
In response to Council Member Peotter's questions, Community Development Director Brandt reported that
she anticipated the Circulation Element, Safety Element, Land Use Element, and Harbor Element would be
considered in the update. She discussed the 2006 comprehensive General Plan Update process.
Council Member Dixon clarified that the update would need budget approval.
Nancy Skinner asked the status of Bayside Drive. City Manager Kiff explained the round -about design status.
In response to Bob McCaffrey's question, Public Works Director Webb stated $10,000 to $15,000 had been
spent on conceptual designs.
Brian Ouzounian suggested retaining funds for the Balboa Theater.
Dennis Baker complimented the Public Works Department for successful grant applications. He also
commended Council for considering another review of the General Plan.
Joy Brenner discussed the history related to the Corona del Mar fire station and library project. She discussed
the importance of public resources and the value of the library.
George Schroeder discussed neighborhood enhancement committees and the need to improve streetscapes.
Lee Pearl commended staff on successful community outreaches and the Police Department for its assistance
during the Boat Parade. He presented his CIP suggestions, including Marine Avenue dovetailing into
residential streets, reducing flood insurance, facilities at Ruby Beach, a community room at the Fire House,
and improvements on Bayside Drive.
Bernie Svalstad, Corona del Mar Business Improvement District, stated they will be suggesting a monument
sign identifying Corona del Mar's entrance.
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Paul Watkins, Board of Library Trustees member, urged Council to stay the course with Fire Station No. 5
and the library.
Jim Mosher believed it was unrealistic to revamp the General Plan in 8 to 12 months and suggested
incremental changes be made.
Jill Johnson -Tucker, Chair of the Board of Library Trustees, stated the library improvements were made due
to the need at the fire station. She suggested rebidding the project and keeping the library as is.
6. GUIDANCE TO CITY STAFF
Mayor Pro Tem Duffield expressed gratitude to IT staff for website improvements and the MyNB app.
Council Member Dixon expressed her continued support for Balboa Boulevard landscape improvements and
traffic synchronization.
Council Member Peotter requested that the next part of the Taxpayer Protection Act remain on the agenda.
He encouraged improvements for transparency, implementing a business license fee, and creating a Harbor
Master Plan.
Council Member O'Neill thanked Mayor Muldoon, staff and the public for their input. He suggested continued
emphasis on restrictive fund use going into community development, such as the Senior Housing Assistance
Program (SHARP) and Community Development Block Grant (CDBG) funds, following Council Policy F-5
regarding surplus, reviewing the FFP, the need for a new rate study in the Wastewater Master Plan, and
conducting study sessions on debt policies, pension liabilities, and the Harbor Master Plan.
Council Member Herdman complimented staff on the workshop. He discussed the need for election reform to
allow the City Attorney to enforce election laws and codes.
Mayor Muldoon suggested that Council address the FFP separately. He agreed with dedicating 50% of the
surplus to unfunded pension liability and 50% to seawall needs. He also suggested using property sale
proceeds toward the unfunded pension liability. He encouraged large community outreach for any General
Plan Update.
7. ADJOURNMENT - 11:56 a.m.
The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board
located in the entrance of the City Council Chambers at 100 Civic Center Drive on
January 12, 2017, at 3:20 p.m.
City Clerk
Mayor
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CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
January 24, 2017
I. ROLL CALL - 6:00 p.m.
Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
II. PUBLIC COMMENTS
Jim Mosher expressed appreciation for the upcoming City Council study sessions and voiced his concerns
about the lack of study sessions in the past
City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss
the items as listed in the Closed Session agenda and read the titles.
III. CLOSED SESSION - 6:02 p.m.
A. CONFERENCE WITH LEGAL COUNSEL
ANTICIPATED LITIGATION - INITIATION OF LITIGATION
(Government Code § 54956.9(d)(4)): 1 matter
B. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6)
Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City
Manager, and Barbara Salvini, Human Resources Director; Negotiators.
Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards
(ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League
(NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association
(NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police
Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach
Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of
Newport Beach (PTEANB).
IV. RECESSED
V. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
VII. CLOSED SESSION REPORT
City Attorney Harp reported that there were no reportable actions taken.
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VIII. PLEDGE OF ALLEGIANCE - Council Member O'Neill
IX. INVOCATION - Rabbi Young, Congregation B'nai Tzedek
X. NOTICE TO THE PUBLIC
XI. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM)
Mayor Muldoon requested an item be placed on a future agenda to amend the City Council Policy on
invocations.
Council Member O'Neill encouraged residents to take advantage of Restaurant Week. He announced the
upcoming Legally Blond Spring Musical at Newport Harbor High School and official reopening of the
Davidson Field on September 8, 2017. He reported that the Sage Hill School Aquatics Center will open
on April 18, 2017. He discussed crime statistics and stated he enjoyed Speak Up Newport.
Council Member Dixon presented a PowerPoint presentation of the Balboa Village gateway sign ribbon
cutting ceremony and other community events and services at Balboa Village.
Council Member Herdman thanked staff for painting "golf cart parking" on Balboa Island streets. He
complimented staff on the Balboa Village gateway sign ribbon cutting ceremony. He stated he began
discussions on the redesign of Marine Avenue on Balboa Island and attended the Balboa Island
Merchants Association Meeting. He announced an upcoming, by invitation only, meeting with those
impacted by the traffic calming redesign of Bayside Drive.
r
Council Member Avery stated he was initially skeptical of the Balboa Village sign, but is now
complimented and appreciated it.
XII. PUBLIC COMMENTS ON CONSENT CALENDAR
Council Member Peotter noted his support for Planning Commission meetings being videotaped (Item
12). f r
City Manager Kiff suggested amending the recommended action on Item 12 to direct staff to videotaping
the Planning Commission meetings and correcting a Scribner's error in the City Council Policy.
Nancy Skinner indicated support for recording and broadcasting Planning Commission meetings.
Jim Mosher thanked the City Council for videotaping Planning Commission meetings. He modified his
written comment relative to City Council Policy A-13, now agreeing with the prohibition of grandstanding.
XIII. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the January 10, 2017 City Council Meeting [100-2016]
Waive reading of subject minutes, approve as amended, and order filed.
2. Reading of Ordinances
Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title
only.
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Second Reading of Ordinance to Temporarily Extend the Nonexclusive Solid Waste
Franchises [42/100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result
in a physical change to the environment, directly or indirectly; and
b) Conduct second reading and adopt Ordinance No. 2017-1, An Ordinance of the City Council of the
City of Newport Beach, California, Temporarily Extending Nonexclusive Solid Waste Franchises
from March 1, 2017 to November 8, 2017 to Ensure Adequate Provision of Solid Waste Collection
Services within the City of Newport Beach.
RESOLUTIONS FOR ADOPTION
4. Dissolution of the General Plan/Local Coastal Plan Implementation Committee [24/100-
2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result
in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2017-5, A Resolution of the City Council of the City of Newport Beach,
California, Dissolving the General Plan/Local Coastal Plan Implementation Committee.
CONTRACTS AND AGREEMENTS
6. Approval of Amendment No. 1 to Professional Services Agreement with Fountainhead
Consulting Corporation for Park Avenue Bridge Replacement Project Construction
Management Services (151120) (C-7072-1) [38/100-2016]
a) Find that construction management and inspection services are not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(3) (the activity is not a project
as defined in Section 15378) of the CEQA Guidelines. For the construction, a Mitigated Negative
Declaration (MND) was adopted by the City Council on November 24, 2014; and
b) Approve Amendment No. 1 in the amount of $419,896.13 to the Professional Services Agreement
with Fountainhead Consulting Corporation for construction engineering/ management and
inspection services for a new not -to -exceed total price $1,264,643.87; and authorize the Mayor and
City Clerk to execute the Amendment.
Council Member Herdman recused himself from Item 6 due to a conflict of interest in real
property within 500 -feet of the project.
MISCELLANEOUS
7. Planning Commission Agenda for the January 19, 2017 Meeting [100-2016]
Receive and file.
Update on Water Use and Conservation Efforts November & December 2016 [100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result
in a physical change to the environment, directly or indirectly; and
b) Receive and file.
11. Initiate a Zoning Code Amendment Regarding Accessory Dwelling Units and Junior
Accessory Dwelling Units [100-2016]
a) Find that the action is not subject to the California Environmental Quality Act (CEQA) pursuant
to Sections 15060(c)(2) and 15060(c)(3); and
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b) Initiate an amendment to Section 20.48.200 and other affected sections of the Newport Beach
Municipal Code to appropriately reflect recent legislation affecting Accessory Dwelling Units and
Junior Accessory Dwelling Units.
12. Filming Planning Commission Meetings; Amendment to Council Policy A-13 [100-2016]
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant
to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result
in a physical change to the environment, directly or indirectly;
b) Direct staff to film Planning Commission meetings and make them available for viewing through
the City's website; and
c) Consider an amendment to City Council Policy A-13 regarding commissioner conduct at taped
Planning Commission meetings and adopt Resolution No. 2017-10, A Resolution of the City
Council of the City of Newport Beach, California, Amending City Council Policy A-13 Relating to
Decorum and Order for City Commissions, Committees and Boards.
Motion by Mayor Pro Tem Duffield, seconded by Council Member Dixon, to approve the Consent
Calendar, except for Items 5, 9 and 10; and noting the recusal by Council Member Herdman on Item 6,
and the incorporation of the City Manager's comments relative to Item 12.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
XIV. ITEM REMOVED FROM THE CONSENT CALENDAR
5. Resolution No. 2017-6: Implementing Improvements and Efficiencies in the City Attorney's
Office [100-2016)
City Attorney Harp presented a PowerPoint presentation to outline the proposal, history of the City
Attorney's Office, reduction in costs, current and proposed office structure, possible fiscal impacts
with change to personnel, possible future fiscal impacts, the reason for the change, and the net cost
to the City.
In response to Council Member Dixon's question, City Attorney Harp explained the proposed salary
ranges. Council Member Dixon commended the City Attorney on his cost saving efforts. She
requested the City Attorney and City Manager work together to retain the number of current full-
time equivalent positions.
In response to Council questions, City Attorney Harp discussed the use of outside counsel and net
savings with personnel. He indicated that he was amenable to waiting to fill the third Deputy City
Attorney position until there was another vacant position within the City.
Motion by Council Member O'Neill, seconded by Council Member Peotter, to a) determine
this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly; and b) adopt Resolution No. 2017-6, A Resolution of
the City Council of the City of Newport Beach, California, Amending the Classification Plan, Salary
Schedule, and Positions in the City Attorney's Office.
In response to Mayor Muldoon's question, City Manager Kiff stated he would discuss position
allocations with the Human Resources Department and anticipated the Deputy City Attorney position
could be filled within three months.
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Jim Mosher questioned whether the structure would result in increased settlement costs. He believed
the City Charter was vague as to how the City Attorney's Office should be structured. He requested
information on City Attorney offices in comparable cities. He suggested the organizational chart
include all City Attorney Office employees.
Mayor Muldoon indicated support for the proposal and commended City Attorney Harp on his work.
Council Member O'Neill stated the trend in local government was to bring staff in-house rather than
outsourcing.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro TemDuff' d, Mayor Muldoon
9. Harbor Commission 2017 Objectives [100-2016]
Harbor Commission Chair Blank presented the 2017 objectives and proposed Council liaisons.
Council Member Herdman stated he enjoyed the Harbor tour and appreciated the Commissioner's
participation.
Council Member Dixon stated the annual Harbor tour was time well spent and was well organized.
In response to Council Member Dixon's question, Chair Blank stated the annual economic value of
the Harbor to the City was $200 million.
Council Member Avery discussed the importance of the Harbor and support by the City Council. He
thanked the Harbor Commission for the report.
Motion by Council Member Dixon, seconded by Mayor Muldoon, to a) determine that the
action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to
the environment, directly or indirectly; and b) approve the Harbor Commission's 2017 Objectives.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
10. Request by the Board of Library Trustees for an Exception to Council Policy A-5 (Fund
Raising/Contracts by City Boards, Commissions, or Committees) [100-20161
City Manager Kiff presented the staff report.
Council Member O'Neill believed this was a premature idea and suggested bringing this back at a
study session for consideration.
Council Member Dixon concurred with tabling the item, but indicated support for the Board of Library
Trustees' fundraising concept.
Council Member Avery indicated support for the plan, but agreed with the need for additional
information.
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Motion by Council Member Peotter, seconded by Council Member Herdman, to continue the
item to a future City Council study session.
Mayor Muldoon concurred with the need for additional information.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
XV. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Sue Dvorak expressed appreciation for the installation of signs around Corona del Mar High School and
requested street sweeping signs be reinstalled.
XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Dixon provided an update on the Finance Committee and discussed the meeting at which
the Finance Committee received an economic forecast. She stated their next meeting would be held
February 16, 2017.
Mayor Muldoon discussed his attendance at the U.S. Conference of Mayors.
XVII. PUBLIC HEARINGS
13. Issuance of Multi -Family Housing Revenue Bonds for the Uptown Newport Project by the
California Statewide Communities Development Authority to TPG/TSG Venture I
Acquisition, LLC [100-20161
Finance Director Matusiewicz presented the staff report.
Council Member O'Neill requested clarification that the City was not issuing any bonds. Finance
Director Matusiewicz confirmed that the City would have no obligation to repay the bonds, simply to
permit issuance within the jurisdiction.
O
Mayor Muldoon opened the public hearing.
Jim Mosher expressed concern that no taxes were paid by the investors, and questioned public
benefits and the development agreement.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
In response to Mayor Muldoon's question, Finance Director Matusiewicz stated Mr. Mosher was
referring to the developer fees, but explained that financing was not related to the agreement. He
further explained that the City had to approve allowing tax exempt borrowing levied against the
property owner.
In response to Council Member Dixon's question, Finance Director Matusiewicz reported the City
would not be responsible for default.
Council Member Herdman asked what the incentive is of purchasing the bond. Finance Director
Matusiewicz explained that interest would be non-taxable, therefore the investor would be willing to
accept a lower interest rate and the developer would get a cheaper financing rate.
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City Manager Kiff reminded the City Council of the public benefit of the project.
In response to Council Member Avery's question, Finance Director Matusiewicz listed other projects
where similar bonds were issued.
Motion by Council Member Dixon, seconded by Mayor Pro Tem Duffield, to a) find this action
is not subject to the California Environmental Quality Act (CEQA), pursuant to Sections 15060(c)(2)
(the activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly; and b) adopt Resolution
No. 2017-7, A Resolution of the City Council of the City of Newport Beach, California, Approving the
Issuance by the California Statewide Communities Development Authority of Multi -Family Housing
Revenue Bonds for the Uptown Newport IApartments and Upt n Newport HApartments.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffiel
Nays: Mayor Muldoon
14. Local Coastal Program Amendment for the Lido House Hotel Floor Area Expansion,
Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061) [100-20161
Community Development Director Brandt provided the staff report.
Motion by Council Member Dixon, seconded by Council Member Herdman, to a) find that all
significant environmental concerns for the proposed project have been addressed in previously
certified environmental documents; and b) adopt Resolution No. 2017-8, A Resolution of the City
Council of the City of Newport Beach, California, Authorizing the Submission of an Amendment to the
City's Certified Local Coastal Program for the Lido House Hotel Project Located at 3300 Newport
Boulevard and 475 32nd Street (PA2016-061).
Mayor Muldoon opened the public hearing.
Jim Mosher explained son he believed the size of the Lido House needed to be increased and
discussed Greenlight provisions.
Sherman Stacy, R.D. Olson Development, urged the City Council to approve the resolution.
George Schroeder reminded the City Council that West Newport Beach residents supported the Lido
House Hotel.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member
Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
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15. Appeal of the Approval of the Village Inn Use Permit and Waiver of City Council Policy
L-21 Located at 127 Marine Avenue (PA2015-016) [100-2016]
In an abundance of caution, Council Member Herdman recused himself from this item due
to his interest in real property near the property.
Community Development Director Brandt introduced the proposed process.
Deputy Community Development Director Wisneski presented a PowerPoint presentation, outlining
City Council consideration items, vicinity map, zoning, site photographs of the Village Inn, application
for CUP, floor plan, conditional use permit, outdoor dining, City Council Policy L-21 — Sidewalk Cafe
Standards, bike corrals, existing regulations, Police Department calls for service, conditions of
approval issued by the Planning Commission, the basis of appeal, and recommendations.
Mike Sullivan, appellant, representing the Marine Avenue Homeowners Association, stated the
Association was unanimously opposed to the application and pointed out that permanent structures
were prohibited by City Council Policy L-6. He expressed concern about noise impacts and believed
that a special privilege would be granted.
Carol McDermott, representing the applicant, presented a PowerPoint presentation, including an
aerial of Village Inn and surrounding uses, the importance of island history, project objectives,
proposed outdoor dining plan, ADA access to outdoor dining, bike corrals, acoustical evaluation and
analysis, responses to neighbors, and widespread support. She requested approval of outdoor dining
and waiver of City Council Policy L-21..�
Council Member Peotter suggested placing the outdoor seating on Park Avenue, instead of Marine
Avenue. Public Works Director Webb presented the existing lane layout at the intersection of Park
Avenue and Marine Avenue, and displayed an alternative. Council Member Peotter explained his
proposal.
Council Member Dixon asked if there would be outdoor dining on Marine Avenue. Council Member
Peotter stated there would be some dining on Marine Avenue and the possibility of continuity with
the existing sidewalk. He explained the location of the stage and suggested allowing flexibility.
Council Member Peotter stated he had discussed the proposal with the appellant and applicant.
Mr. Sullivan stated the Association liked the idea because it solved the noise concern.
Council Member Dixon requested clarification on the Association's concerns about hours of operation
and times for delivery trucks. Mr. Sullivan stated delivery hours had been violated in the past, but
they were looking toward the future. He stated the hours of operation were not a concern if the
outdoor dining was relocated to Park Avenue. He stated he would accept the applicant's word on
efforts to control noise from performers.
Ms. McDermott indicated an opening on the Marine Avenue side was necessary to access the outdoor
dining. She believed Council Member Peotter's suggestion was not as efficient operationally, but
welcomed the opportunity to move the bike racks and improve the outdoor appearance.
Mayor Muldoon indicated support for moving all of the bike racks.
Mr. Sullivan discussed the use of the bike racks during the summer.
Public Works Director Webb stated staff favored having some bike racks by the Village Inn. He noted
there may be site distance issues with the bike corrals.
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Mr. Sullivan expressed concern with having a door on Marine Avenue, but suggested, if there were a
door, it be a Dutch door. Ms. McDermott stated better sound attenuation would occur with a full door.
In response to Council Member Peotter's question, Ms. McDermott discussed difficulty with servers
utilizing a normal door. Mr. Sullivan requested a wide door not be used.
In response to Mayor Muldoon's question, Deputy Community Development Director Wisneski stated
staff had prepared language for the proposed compromise.
Mayor Muldoon opened the public hearing.
Jim Simpkins asked about the location of outdoor dining on Park Avenue. Council Member Peotter
stated the public dining would start from the second door towards Marine Avenue.
Don Abrams commended Council Member Peotter for theoposed compromise, but expressed
concern with moving the bike corrals.
Jay Truax suggested placing the bike corrals on side streets. He stated the sound would go towards
the Fire Station. He discussed the need for ADA compliance. 1W
Jim Mosher explained that the Planning Commission approved the idea for outdoor dining, provided
the City Council waived associated policies. He stated that past practice had been for temporary
sidewalk dining, not permanent installation. He asked how much the applicant would pay to use the
public right-of-way. He agreed that bike racks should be accessible from the alleys.
Dan Miller, Village Inn owner, requested flexibility to utilize brass instruments for live
entertainment. He asked that they be allowed to remain open until 1:30 a.m. on New Year's Eve.
Jack Callahan commended staff on the accurate report. He indicated support for expansion of the
Village Inn. He suggested additional bike racks be placed all over Balboa Island.
Jari Appelroth provided historical background about noise from the Village Inn and indicated it was
currently quiet and family-oriented. He questioned the length of time staff is proposing to move the
bike rack. He suggested referring to the Village Inn as a family restaurant rather than sports bar.
He urged the City Council to approve the application.
Brenton Roger Ogden III asked if the existing doors would remain. Council Member Peotter explained
that the doors and windows would be replaced. Mr. Ogden expressed concern about noise impacts.
He stated the area was historically a beer garden, but the area's image needed to be improved.
Tommy Crosson urged the City Council to approve the application.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
Mayor Pro Tem Duffield applauded Council Member Peotter for his suggested design and believed it
was a more logical expansion. He expressed support for the compromise.
Council Member Peotter suggested installing enhanced landscaping at the corner. Mr. Miller stated
they were willing to compromise some of the visibility, but still needed to maximize the operation. He
stated they would continue to look for ways to beautify the space and reported that he was comfortable
with the proposed compromise.
Council Member Peotter suggested deliveries be allowed after 7:00 a.m.
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City of Newport Beach
Regular Meeting
January 24, 2017
Council Member Dixon complimented Council Member Peotter, the applicant, appellant, and
residents for the compromise.
Council Member Avery asked if Memorandum No. 3 was already agreed upon. He expressed concern
regarding the use of drums and bass sets. Mr. Miller requested the opportunity to retain flexibility
on the types of instruments, while acknowledging the noise ordinance and conditions. Mr. Sullivan
indicated that his objection was to music that penetrated through his walls. Council Member Avery
stated he was pleased with the proposed compromise.
Deputy Community Development Director Wisneski reviewed the proposed changes to the conditions.
She suggested allowing flexibility in the type of doors, landscaping and patio elevation. She stated a
resolution would be brought back to allow the City Council to review the changes.
Motion by Mayor Muldoon, seconded by Council Member Peotter, to incorporate what staff
summarized and bring back the resolution on the Consent Calendar at the February 14, 2017 City
Council meeting.
The motion carried by the following roll call vote:
Ayes: Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member
O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon
Recused: Council Member Herdman 1*
XVIII. MOTION FOR RECONSIDERATION - None
XIX. ADJOURNMENT - 9:47 p.m.
The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board
located in the entrance of the City Council Chambers at 100 Civic Center Drive on
January 19, 2017, at 4:00 p.m.
City Clerk
Mayor
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