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HomeMy WebLinkAbout02/14/2017 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting February 14,2017 I. ROLL CALL - 3:30 p.m. H. Present: Council Member Herdman, Council Member Avery (arrived at 3:33 p.m.), Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon SSI. Clarification of Items on the Consent Calendar - None SS2. Presentation from the Orange County Human Relations Commission Dr. Kerry Reynolds, Orange County Human Relations Commissioner, highlighted the Commission's purpose, presented a handout, and discussed programs utilized in Newport Beach. She presented a Certificate of Recognition to Mayor Muldoon for the City's commitment to fostering mutual understanding and eliminating prejudice, intolerance and discrimination. SS3. Recognizing Mr. Dean Zipser (Winner of the Franklin G. West Award by the Orange County Bar Association) Council Member O'Neill recognized Dean Zipser for his receipt of the Franklin G. West Award. SS4. Follow-ups from the 2017 Planning Session, Including a Review of Projects in the Facilities Financing Plan (FFP) City Manager Kiff presented a PowerPoint presentation reviewing the Facilities Financing Plan (FFP). Council Member Dixon discussed developer contributions that provide financially towards the City's infrastructure. City Manager Kiff explained the unfunded pension liability and the need to reevaluate proposed projects. Council Member O'Neill stated the FFP was made up of General Funds and developer fee funds. Finance Director Matusiewicz explained that general public benefit fees, with the exception of the 2% that is set aside for cultural arts and restricted funds, were deposited into the FFP fund. City Manager Mff discussed the limited contributions to the fund. Council Member Dixon expressed gratitude for the City's fortunate financial situation. In response to Council Member Dixon's question, Public Works Director Webb confirmed that the Capital Improvement Program (CIP) budget ranges from $60 million to $70 million, with $5 million coming from the General Fund. City Manager Kiff recommended shelving the West Newport Community Center project and Corona del Mar Fire Station project. He suggested aggressively applying for grants for the pedestrian bridges near Sunset Ridge Park. He discussed the Newport Pier project and suggested not proceeding with the restaurant rebuild. He recommended efforts to obtain community donations for the Junior Lifeguard Headquarters and the library lecture auditorium. Volume 63 - Page 1S4 City of Newport Beach Study Session and Regular Meeting February 14,2017 City Manager Kiff indicated that he welcomed input at this time, but recommended referring the matter to the Finance Committee. In response to Council Member O Neill's question, City Manager Kiff discussed the status of Fire Station No. 5 (Corona del Mar), but pointed out that Fire Station No. 2 (Lido) had a more urgent need. Council Member Dixon asked if an interim improvement program was possible for the Corona del Mar Library and Fire Station. City Manager Kiff stated that the Facilities Maintenance Fund could potentially be used. Finance Director Matusiewicz reported the balance of the fund was approximately $17 million, with $1 million committed to the Fire Station No. 6 (Mariners). City Manager Kiff noted there were projects that were being recommended to proceed that could utilize the funds. In response to Council Member Peotter's question, Finance Director Matusiewicz noted that some developer fees had a specific time period to be used. Community Development Director Brandt reported that development agreement fees and public benefit fees could be used at the City Council's discretion. She noted that 2% of developer fees were set aside for cultural arts, but there were no other uses or time restrictions. Regarding the Junior Lifeguard Headquarters, City Manager Kiff noted no funds were included in the FFP for it. He indicated that the Junior Lifeguard trailers could be replaced, but the parents believe the program deserved better. He explained the need for restroom facilities. Public Works Director Webb reported that the proposed project was approximately 5,000 square feet. Regarding the Newport Pier, Public Works Director Webb discussed the proposed Newport Pier project and outlined Options 1 and 2. City Manager Kiff expressed concern regarding significantly investing in a restaurant and the potential for storm damage. Mayor Pro Tem Duffield asked what would be required to upgrade the end of the Newport Pier to support a food truck. Public Works Director Webb discussed the need to replace the original piles. In response to Council questions, Public Works Director Webb emphasized that Option 1 was necessary for public safety and discussed the need for structural foundations for a restaurant. City Manager Mff presented options for Lower Castaways Park and discussed revenue that could be generated from parking. Mayor Pro Tem Duffield noted that discussions regarding Option 3 for Lower Castaways Park were ongoing. City Manager Mff discussed the obligation for a General Plan Update. In response to Council Member Herdman's question, City Manager Kiff explained costs for a consultant to prepare the environmental review. City Manager Mff presented the West Coast Highway Landscaping project. In response to Council Member O'Neill's question, Public Works Director Webb stated there would be a general fund expense related to this project. City Manager Kiff discussed leases on City -owned properties. Council Member O'Neill requested a study session relative to the City's debt policies, particularly the Finance Policies, prior to Finance Committee consideration. Volume 63 - Page 185 City of Newport Beach Study Session and Regular Meeting February 14, 2017 In response to Council Member Herdman's questions, Public Works Director Webb discussed the currently funded design for refurbishment of Marine Avenue on Balboa Island. City Manager Kiff explained the process for the project. Council Member Peotter discussed the proposed Bayside Drive Plan. Public Works Director Webb stated the project was in the current CIP. Council Member Peotter believed a redesign could save funds. Joy Brenner indicated she understood the issues related to unfunded pension liability and the urgency for the seawall. She discussed community input and the enthusiasm for the Corona del Mar Library project and suggested installing air conditioning, replacing the windows, and upgrading the furniture as short-term repairs. Jimmy Ulcickas, co-founder of Bluewater Grill, expressed his desire for a restaurant at the end of the Newport Pier. Linh Do presented Valentine's Day cards to the City Council. She discussed the need for improvements at the Corona del Mar Library and requested Council's continued support for the library renewal project. Nancy Abrams suggested constructing a downsized restaurant at the end of the Newport Pier. Karen Carlson urged the City Council to proceed with upgrading the Corona del Mar Library. Mayor Muldoon dispelled the rumor that the Corona del Mar Library property would be sold. Graham Harvey, Junior Lifeguard Foundation, thanked the City Council for its consideration of upgrading the headquarters. In response to Council Member Dixon's question, Mr. Harvey discussed potential reductions in the cost of the proposed project. George Schroeder expressed concern with having to decide between important projects. He indicated support for the Fire Station No. 2 and Junior Lifeguard Headquarters projects. He questioned the need for a restaurant at the end of Newport Pier when there were so many existing restaurants in the area. Jim Mosher stated the largest revenue source was residential property tax and discussed the purpose of the FFP. He expressed concern with postponing the bidding on the Corona del Mar Library without Council direction to do so. He asked if the General Plan had to be updated every ten years. Mayor Muldoon stated a General Plan Update had been attempted but failed. He asked for information on the library bid. City Manager Mff explained that the project was not yet put out to bid, pending the new City Council being seated. Paul Watkins suggested creating an action list and timeline for freshening -up the Corona del Mar Library. In response to Mayor Muldoon's question, Finance Director Matusiewicz stated the arts fund balance was $441,000. Public Works Director Webb stated $1.5 million was budgeted for facilities maintenance. Volume 63 - Page 186 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Mayor Muldoon suggested putting off the Corona del Mar Library/Fire Station project, but making improvements to the existing structures. He suggested eliminating the Utilities and Corporate Yard merger, West Newport Beach Community Center project, and Grant Howald Park project; recommended either doing nothing or implementing Option 3 for Lower Castaways Park; not proceeding with the Newport Pier; and suggested waiting on fundraising for the Junior Lifeguard Headquarters. He asked for input from colleagues on the the Lido Fire Station. He indicated he was eager to sell the Lido Hotel property or increase the lease rate, and even more eager to sell the old community center with restrictions to allow continued access to the gym. Council Member Dixon believed the Lido Fire Station was a high priority and strongly supported proceeding with short-term upgrades to the Corona del Mar Library. She indicated support for constructing a restaurant on Newport Pier if the costs could be reduced, recommended that the Finance Committee review the Lido House Hotel property and West Newport Community Center, suggested reducing the size of the Junior Lifeguard Headquarters, and agreed with proceeding with the West Newport Landscaping project. In response to Council Member Herdman's question, City Manager lCff explained the West Newport Community Center lease to Pacifica Christian High School, and discussed the location of the old and new facilities. Council Member Herdman stated his priorities, based on the unfunded liability issue, would be the Lido Fire Station, Corona del Mar Library refurbishment, Junior Lifeguard Headquarters with foundation support, and West Newport Landscaping project. Mayor Pro Tem Duffield concurred with Mayor Muldoon's assessment. He indicated that he struggled with the costs associated with the Newport Pier. Public Works Director Webb discussed the need to change out the piles and highlighted the cost of building the restaurant shell. City Manager F.iff confirmed that the existing restaurant needed to be removed. In response to Council Member O'Neill's question, Public Works Director Webb stated $6.9 million was currently budgeted for the Corona del Mar Library/Fire Station project. Council Member Peotter indicated support for proceeding with a General Plan Update and eliminating the Utilities and Corporate Yard merger. City Manager Kiff agreed that the Corona del Mar Library was functioning, but needed to be updated. Public Works Director Webb discussed maintenance. Council Member Peotter suggested deferring the Corona del Mar Library and Fire Station project, utilizing grants for the Sunset Ridge Park Bridge, deferring the West Newport Community Center project, and adding rustic improvements or utilizing private funding for Lower Castaways Park. He agreed with demolishing the existing Newport Pier restaurant and rehabilitating the Newport Pier, but not proceeding with a new restaurant. He suggested having the Finance Committee review divestment of properties. Council Member Avery discussed community support for the Corona del Mar Library and Junior Lifeguard Headquarters. He suggested a public/private partnership for the Lower Castaways Park. He believed additional examination was necessary for Fire Station No. 2 and hoped it could last four to five more years. He agreed that Corona del Mar Library and Grant Howald Park needed safety upgrades. In response to Council Member Dixon's question, City Manager Mff stated he would work with Finance Director Matusiewicz and the Finance Committee on how removal of projects would change the General Fund contribution to the FFP. Council Member Dixon suggested the Finance Committee prepare scenario plans. She stated the City was not falling off the cliff, but unfunded liability was an issue. She stated it was necessary to be prudent and fiscally responsible. Volume 63 - Page 187 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Council Member Herdman discussed the recent Mariner's Mile presentation. Council Member O'Neill suggested continuing to re -budget the Corona del Mar Library, to retain the project as a priority. He stated not all FFP funds could be used for unfunded liability or projects within the community. In response to Mayor Muldoon's question, City Manager Mff discussed the recommendation to grant fund the Sunset Ridge Park Pedestrian Bridge and Dog Park. Mayor Muldoon stated it was difficult to come up with a list, but it is an opportunity to preserve the City going forward. He stated he remained committed to the Corona del Mar Library. He encouraged private funding to complete projects. III. PUBLIC COMMENTS Referencing Closed Session Item C, Jim Mosher suggested including information that the City is looking for potential locations for the new Lido Fire Station. He also suggested that Orange County Museum of Art v. City Council of the City of Newport Beach, et al. be explained in public. 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 A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter B. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 3 matters Rubendario Cabrera v. City of Newport Beach, et al. Orange County Superior Court Case No. 30-2014-00726252-CU-PO-CJC Maria Balbuena o. City of Newport Beach, et al. Orange County Superior Court Case No. 30-2014-00724934-CU-PO-CJC Orange County Museum of Art v. City Council of the City of Newport Beach, et al. Orange County Superior Court Case No. 30-2017-00896448-CU-PT-CJC C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Properties: (1) 2807 Newport Boulevard, Newport Beach, CA 92663 (APN 047-031-22) (2) 500 32nd Street, Newport Beach, CA 92663 (APN 047-031-19) (3) 516 32nd Street, Newport Beach, CA 92663 (APN 047-031-20) (4) 530 32nd Street, Newport Beach, CA 92663 (APN 047-031-22) Agency Negotiators: Seimone Jurjis, Assistant Community Development Director Mark Vukojevic, Deputy Public Works Director/City Engineer Lauren Wooding, Real Property Administrator Volume 63 - Page 188 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Negotiating Parties: (1) MNG Newport Beach, LLC (2) New Port Beach Mixed Development, LLP (3) Lido Associates II, LLC (4) Bishop of Protestant Episcopal Church in Los Angeles Under Negotiation: Price and Terms of Payment D. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957 (b)(1)) Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk V. RECESSED - 5:27 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. 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 VIII. CLOSED SESSION REPORT City Attorney Harp reported that there were no reportable actions taken. IX. PLEDGE OF ALLEGIANCE - Council Member O'Neill X. INVOCATION - Council Member Peotter XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member O'Neill wished his wife, daughter, and the City Council a Happy Valentine's Day. He announced the opening of Heroes Hall and presented the Challenge Coin to Mayor Muldoon. He stated he attended the CERT awards banquet, Police Department Promotional Ceremony, and the Holiday Inn Express Ribbon Cutting Ceremony. He noted that he and Council Member Dixon participated on an interview panel at Newport Harbor High School. Council Member Peotter requested a study session relative to wireless telecommunications and the right- of-way ordinance. Council Member Dixon announced the Second Annual Women in Newport Networking (WiNN) Forum on March 16, 2017, from 5:30 p.m. to 7:00 p.m. She congratulated Mayor Muldoon on the Speak Up Newport Mayor's Dinner. She requested a future agenda item on election and campaign reform. Council Member Herdman stated he attended the League of California Cities (LCC) training on governance, CERT awards dinner, Police Department Promotional Ceremony, and the Mayor's Dinner. He discussed the working group on modifications to Bayside Drive. Mayor Pro Tem Duffield commended Mayor Muldoon on the Mayor's Dinnei Volume 63 - Page 189 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Mayor Muldoon requested future agenda items on the zoning and future use of the Newport Beach Tennis Club and the roundabout at Bayside Drive. Council Member Herdman suggested Item 21 (Certification of Petition for Referendum of Resolution No. 2016-127 Relating to the Museum House Residential Project) be moved to the February 28, 2017 agenda. City Attorney Harp explained the potential litigation allegation. XIII. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA • Amendments to City Council Policy A-19 -Guidelines for Invocations (Muldoon) The City Council unanimously concurred to place the matter on a future agenda. • Updating the City's Wireless Telecommunications Facility and Public Rights -of -Way Ordinances, as well as Reviewing the Fee Schedule for Small Antenna Installations (Peotter) Mayor Muldoon recused himself on this item due to his involvement with the telecommunications business. The City Council unanimously concurred to place the matter on a future agenda. • Study Session on Alternatives to Improve Safety on Ocean Front Walk (Dixon) The City Council unanimously concurred to place the matter on a future agenda. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Dixon urged residents to submit applications for the Water Quality/Coastal Tidelands Committee vacancy (Item 20). Regarding Item 5 (Petition Certification and Request for Funding for Proposed Assessment District No. 113 to Underground Overhead Utilities for West Balboa Island), Brian Ouzounian expressed concern with submerging electrical power and requested that Council direct staff to investigate the long-term functionality. Bill Lewis discussed the reliability of underground systems referenced in Item 5. He discussed the petition process, expressed support for the project, and urged Council to approve Item 5. Carmen Smith, President of the Newport Beach Arts Foundation, thanked the City Council For accepting the Sphere 112 sculpture (Item 16). XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 14, 2017 City Council Special Meeting and January 24, 2017 City Council Meeting 1100-20171 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. Volume 63 - Page 190 City of Newport Beach Study Session and Regular Meeting February 14, 2017 ORDINANCE FOR INTRODUCTION 3. Prohibition of Water -Propelled Vessels Above the Water Surface in Newport Harbor 1100- 20171 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) Introduce Ordinance No. 2017-2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Subsection 17.20.060(B) and Repealing City Council Policy H-6 to Prohibit the Operation of Vessels Propelled by Water Above the Surface of Newport Harbor, and pass to second reading on February 28, 2017. Mayor Pro Tem Duffield recused himself from Item 3 due to his rental boat business being on the Harbor. Mayor Muldoon voted "no" on Item 3. RESOLUTIONS FOR ADOPTION 5. Petition Certification and Request for Funding for Proposed Assessment District No. 113 to Underground Overhead Utilities for West Balboa Island [891100-20171 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding); b) Adopt Resolution No. 2017-11, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 113; and c) Approve Budget Amendment No. 17BA-022 appropriating $125,000.00 from the Assessment District No. 113 unappropriated Fund Balance to Account No. 66302-941006 (Assessment District 113 Engineering Services). 6. Adopt Resolution for Installation of a Stop Sign on Bay Avenue at Island Avenue [100-20171 a) Determine that this action is exempt from 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 15375 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 2017-12, A Resolution of the City Council of the City of Newport Beach, California, to Post Stop Control on Bay Avenue at the Intersection with Island Avenue. CONTRACTS AND AGREEMENTS Grand Canal Dredging Project - Phase 1 - Notice of Completion of Contract No. 8171-1 (Project No. 161112) [381100-20171 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. This project was found exempt from the California Environmental Quality Act (CEQA) pursuant to Class 4 Section 15304 (g) (Maintenance dredging where the spoil is deposited in a spoil area authorized by all applicable state and federal regulatory agencies); b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. Volume 63 - Page 191 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Council Member Herdman recused himself from Item 7 due to a conflict of interest in real property within 500 -feet of the project. 8. Water Master Plan (2017) -Approval of Professional Services Agreement with Arcadis U.S., Inc. (C-8237-1) (17W02) [381100-20171 a) Determine the action is exempt from 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 a Professional Services Agreement with Arcadis U.S., Inc. of Irvine, California, for the Water Master Plan (2017) at a not -to -exceed price of $342,309.00, and authorize the Mayor and City Clerk to execute the Agreement. 10. Service Agreement with California Forensic Phlebotomy, Inc. (C-8412-1) 1381100-20171 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) Waive the contract procurement requirements of City Council Policy F-14 and approve the single - source service agreement with California Forensic Phlebotomy, Inc. for a not -to -exceed cost of $150,000 during the term of the agreement, and authorize the Mayor and City Clerk to execute the agreement. 11. Approve Agreement with Climatec, LLC for Civic Center HVAC Control System Maintenance and Repair (C-8413-1) [381100-20171 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 Agreement with Climatec, LLC for Civic Center HVAC Control System Maintenance and Repair for a total amount not to exceed $205,440 for five years, and authorize the Mayor and City Clerk to sign the agreement. MISCELLANEOUS 12. Planning Commission Agenda for the February 9, 2017 Meeting [100-20171 Receive and file. 13. Budget Amendment to Accept a Check in the Amount of $23,621 from the California State Library for Literacy Services (CLLS) and Appropriate Funds to the Library's Fiscal Year 2016/2017 Maintenance and Operation Budget [100-20171 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 Budget Amendment No. 17BA-023 to increase revenue estimates by $23,621 in account 01060005-431070 (California Literacy Campaign) and to increase expenditure estimates by the same amount in Division 01060604-711003 (Literacy Services). 14. Central Warehouse Flood [100-20171 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 Budget Amendment No. 17BA-024 increasing revenue estimates for the insurance refund by $76,376.51 and increasing expenditure appropriations from Unappropriated General Fund Balance by $90,775.40. The net fiscal impact to the General Fund is a reduction in fund balance of $14,398.89. Please refer to the table in the `Funding Requirements' section of the staff report for additional details regarding expenditures and revenues related to this request. Volume 63 - Page 192 City of Newport Beach Study Session and Regular Meeting February 14, 2017 15. Request to Install Third Driveway Along the 4615 Brighton Road Frontage [100-2017] 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; b) Waive City Council Policy L-2, Driveway Approaches, to allow the construction of a third driveway along the 4615 Brighton Road frontage within the public right-of-way; and c) Direct the property owner to process a revision to the approved building plan check to reflect the third driveway approach and new single car garage. The plan check shall be reviewed and approved by Public Works staff and an encroachment permit shall be obtained prior to the construction of the additional driveway approach within one calendar year upon receipt of approval. 16. Donation of the Sculpture Sphere 112 to the City of Newport Beach [100-20171 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) Accept the donation of Sphere 112 from the Newport Beach Arts Foundation into the City Art Inventory, and approve the placement of the piece in its current site 17. Review of City Council Policies [100-20171 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) Appoint Mayor Kevin Muldoon, Council Member Will O'Neill, and Council Member Brad Avery to the Ad Hoc Committee to review all City Council Policies. 18. Mayor Appointment to the Orange County Sanitation District [100-2017] 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) Confirm Mayor Kevin Muldoon's appointment of Council Member Brad Avery as the alternate member to the OCSD. 19. Appointments to the Finance Committee [241100-20171 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) Confirm Mayor Pro Tem Duffy Duffield's appointment of William Collopy to fill the unexpired balance of Council Member Will O'Neill's term on the Finance Committee and an additional one- year term; and c) Confirm Council Member Brad Avery's appointment of Joseph Stapleton, Council Member Jeff Herdman's reappointment of Larry Tucker, and Council Member Peotter's reappointment of Patti Gorczyca to serve on the Finance Committee for a one-year term. 20. Appointments to the Water Quality/Coastal Tidelands Committee 1241100-20171 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) Waive the portion of Council Policy A-2 (Board, Commission and Committee Appointments) which requires two or more applications for each vacant seat; c) Reappoint Dennis Baker, Louis Danger, Fred Galluccio, Lawrence Houston, and George Robertson, and appoint Erin Delman to the Water Quality/Coastal Tidelands Committee; and d) Direct the City Clerk to re -advertise for the last vacant seat on the Water Quality/Coastal Tidelands Committee. Volume 63 - Page 193 City of Newport Beach Study Session and Regular Meeting February 14, 2017 21. Certification of Petition for Referendum of Resolution No. 2016-127 Relating to the Museum House Residential Project [391100-20171 a) Determine this action is exempt from the 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) Receive and file the Orange County Registrar of Voters Certificate as to Verification of Signatures on Petition. Motion by Mayor Pro Tem Duffield seconded by Council Member Dixon, to approve the Consent Calendar, except for the items removed (Items 4 and 9); and noting the "no" vote by Mayor Muldoon to Item 3, the recusal by Mayor Muldoon on Item 5, the recusal by Mayor Pro Tem Duffield on Item 3, and the recusal by Council Member Herdman on Item 7. 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 XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. 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) [100-20171 Council Member Herdman recused himself due to a conflict of interest in real property within 500 -feet of the project. Deputy Community Development Director Wisneski provided the staff report. Council Member Peotter proposed additional Conditions and a revision to Condition No. 21 Carol McDermott presented a PowerPoint presentation and requested a modification to Condition No. 41 to increase the door width to 42 -inches. In response to Mayor Muldoon's question, Ms. McDermott agreed to the proposed changes with the exception of Condition No. 41. Council Member Peotter discussed Mr. Sullivan's desire for a 36 -inch door and suggested retaining the condition. Jim Mosher questioned Condition Nos. 34 and 35 and pointed out a misspelling, believed Section 2 was unclear as to what was being waived and allowed, asked if the sidewalk was allowed to be raised, expressed confusion about the Conditions related to the bike racks, and questioned the presentation of a site plan. Deputy Community Development Director Wisneski addressed Mr. Mosher's comments. Council Member O'Neill discussed the review process and Council Member Peotter's efforts to reach a resolution. He indicated he was inclined to allow the 42 -inch door in Condition No. 41. Mayor Pro Tem Duffield indicated support for the proposed modification to Condition No. 41, believing the size increase would not increase noise. Volume 63 - Page 194 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Council Member Dixon discussed the proposed noise analysis. She suggested that immediate action be taken on noise issues. Community Development Director Brandt Stated the noise study would determine the outcome. Deputy Community Development Director Wisneski stated the restaurant would have to maintain compliance with the noise ordinance and residents were encouraged to contact staff with complaints. Council Member Avery commended staff and Council Member Peotter on efforts to come to a resolution. He discussed Mr. Sullivan's concern about noise, but indicated support for a 42 -inch door. Community Development Director Brandt presented proposed language for Condition No. 41. Motion by Council Member O'Neill seconded by Council Member Peotter, to a) determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) Guidelines per Section 15303 - Class 3 (Construction or Conversion of Small Structures) in that the improvements associated with the outdoor dining area are considered accessory to the main structure; b) adopt amended Resolution No. 2017-9, AResolution of the City Council of the City of Newport Beach, California, Upholding the Planning Commission's Approval of Use Permit No. UP2016-012 with modified Conditions of Approval to Establish an Outdoor Dining Area Associated with an Existing Restaurant at 127 Marine Avenue (PA2015-016); c) waive portions of City Council Policy L-21, Sidewalk Cafe Standards and Procedures, to allow for a six-foot wide minimum pedestrian clear width sidewalk in a potentially heavy pedestrian traffic area; to allow a barrier that would be permanently bolted in place; to allow the outdoor dining area to be maintained above the level of the existing sidewalk; and to allow the outdoor dining area to be located less than ten feet from the corner of the building; d) require Applicant to obtain an Annual Outdoor Dining Encroachment Permit and pay all applicable fees; and e) direct staff to relocate a portion of the existing bike racks adjacent to the Village Inn to new bike corrals in the 200 and 300 blocks of Marine Avenue. 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 9. Lease Agreement for Animal Sheltering Services (C-8406-1) [381100-20171 Council Member O'Neill discussed the ramifications of extending the lease, but stressed the need for an animal shelter. He mentioned the possibility of a non-profit organization taking over this responsibility. Assistant City Manager Jacobs provided historical background on the animal shelter and reported on issues with volunteer staffing. She highlighted alternatives explored for animal sheltering services, explained the need for staffing, and discussed the purpose of a three-year agreement. Council Member Dixon commended staff and the facility, and expressed hope for utilizing the non-profit organization. She indicated support for the proposed agreement. Assistant City Manager Jacobs clarified that the agreement was for five years, but could be changed to a three-year term with two one-year options. Motion by Council Member Peotter, seconded by Council Member O'Neill, 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) authorize the Mayor to sign a Lease Agreement with Volume 63 - Page 195 City of Newport Beach Study Session and Regular Meeting February 14, 2017 Home Free Animal Sanctuary, 20302 Riverside Drive, Newport Beach, CA 92660, for $66,000 per year for a period of three years with an option to extend the term by an additional two years. Tim Stoaks discussed efforts to create a non-profit organization to assist with this. He thanked staff and the community for supporting the shelter. He encouraged the City Council to support the agreement and full-time position. In response to Council Member Dixon's question, Mr. Stoaks discussed the Friends of Newport Beach Animal Shelter non-profit status. Jim Mosher discussed the proposed lease agreement and requested information on the increased cost. In response to Mayor Muldoon's question, Assistant City Manager Jacobs explained that additional square footage was being offered. 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 XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher thanked the City Clerk's Office for posting written comments online. Tim Leedom discussed the removal of dead birds from the Balboa Island shore and suggested conducting a comprehensive study on the condition of the Bay. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Dixon announced that a Balboa Village Advisory Committee (BVAC) meeting will be held on February 15, 2017, at 4:00 p.m. She stated the Finance Committee would be meeting on February 16, 2017, at 3:00 p.m. in the Crystal Cove Conference Room. Council Member Herdman stated he would be attending the Balboa Island Merchants Association Ad Hoc Committee meeting on February 17, 2017, to discuss the refurbishment of Marine Avenue. XIX. CURRENT BUSINESS 22. 15th Street Sidewalk Conceptual Approval - Newport Heights [100-20171 Deputy Public Works Director Vukojevic presented a PowerPoint presentation outlining the request for sidewalk installation and impact on existing trees. Council Member Peotter asked about right-of-way and existing hardscape and landscape. Deputy Public Works. Director Vukojevic discussed the City's right-of-way and coordination with homeowner developed sidewalks. Murphy McCann, father of Brock McCann, expressed appreciation for City Council consideration of the sidewalk. In response to Council Member Peotter's question, Deputy Public Works Director Vukojevic discussed the timeline for design and construction. Volume 63 - Page 196 City of Newport Beach Study Session and Regular Meeting February 14,2017 Council Member Dixon asked if trash collection services had been modified. City Manager mff reported that routes and times had been modified, but efforts were ongoing. Motion by Council Member Peotter, seconded by Council Member Dixon, to a) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment based on the sidewalk being constructed within the improved right of way; and b) approve the conceptual sidewalk layout; waive City Council Policy G-1 and approve the removal of public trees to accommodate the sidewalk, and direct staff to work with the Parks, Beaches, and Recreation Commission on the selection of replacement trees; direct staff to bring back a budget amendment for the project; and incorporate the sidewalk work into the upcoming Newport Heights Concrete Alley Project Deputy Public Works Director Vukojevic clarified that the project also included a sidewalk along Cliff Drive in front of Ensign Intermediate School. In response to Council Member Peotter's question, Public Works Director Webb explained the sidewalk installation in relation to the ongoing development in that area. 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 XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 8:24 p.m. in memory of Chip Donnelly and Ralph Rodheim 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 February 9, 2017, at 4:00 p.m. Mayor �E1a®'Q i City Clerk U <1P�RN1P Volume 63 - Page 197