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.
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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.
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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.
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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.
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Study Session and Regular Meeting
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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