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HomeMy WebLinkAbout02/28/2017 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting February 28, 2017 I. ROLL CALL - 4:00 p.m. Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon H. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - None SS2. 2016 Junior Lifeguard of the Year Mayor Muldoon read the proclamation and Lifeguard Operations Assistant Chief Williams and Lifeguard Captain O'Rourke presented Zoe Ziebarth with the Fire Department 2016 Junior Lifeguard of the Year plaque and a $250 scholarship check from the California State Life Saving Association (CSLSA). SS3. Update on Various Harbor Programs and Projects Assistant City Attorney Torres stated, in an abundance of caution, various Council Members would be stepping out at certain points of the presentation due to potential conflicts of interest. Prior to Harbor Resources Manager Miller presenting a PowerPoint presentation outlining the City -owned seawalls and bulkheads, Council Member Herdman recused himself due to the location of his home to the seawalls. Council Member O'Neill asked if Council Member Herdman had obtained an opinion from the Fair Political Practices Commission (FPPC) on participating on seawall discussions. He believed it would be helpful to have his input on such issues. Assistant City Attorney Torres stated he had not yet requested guidance. Council Member Herdman returned to the dais. Prior to Harbor Resources Manager Miller summarizing the Central Avenue public pier and plaza project, Council Member Avery, Council Member Dixon, and Mayor Pro Tem Duffield recused themselves since they are members of the Newport Harbor Yacht Club that donated funds to the project. Council Member Avery, Council Member Dixon, and Mayor Pro Tem Duffield returned to the dais. In response to Council Member Peotter's question regarding the Balboa Marina, Harbor Resources Manager Miller explained the public slips required by The Irvine Company and proposed relocation. He stated the City would take over management and the item would be publicized. Volume 63 - Page 198 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Following Harbor Resources Manager Miller's presentation relative to the derelict vessel abatement grant, Council Member Dixon requested information on derelict boat removal. Harbor Resources Manager Miller discussed the challenge of identifying derelict boats, noted that the boats are reviewed by staff and the Harbor Commission, and discussed the removal process. Council Member Dixon asked if the process could be improved. Harbor Resources Manager Miller discussed non-payment of fees versus derelict vessels. Council Member Dixon requested data on the number of derelict boats and status of the process. Mayor Pro Tem Duffield discussed the derelict boat issues in Florida and the establishment of volunteers to assist boat owners in repairing their boats. He stated he would propose the Harbor Commission work on creating a similar program. Harbor Resources Manager Miller discussed fixed Coast Guard channel markers and efforts to convert them to floating buoys. In response to Council Member O Neill's question, Harbor Resources Manager Miller stated there were six fixed markers at an estimated replacement cost of $10,000 per buoy. Harbor Resources Manager Miller discussed the Complete Cruising Guide to Newport Harbor and the Harbor beach sand maintenance project. In response to Council Member Dixon's question, Harbor Resources Manager Miller explained that beaches were determined based on input from the community and the City's annual programming. Prior to Harbor Resources Manager Miller discussing Harbor dredging, including the Grand Canal, Council Member Herdman recused himself due to the location of his home. In response to Council Member Peotter's question, Harbor Resources Manager Miller stated the unusable material was taken to the ocean disposal site. Council Member Herdman returned to the dais. In response to Council Member Dixon's question regarding the Regional General Permit (RGP-54), Harbor Resources Manager Miller discussed the 60 permits issued to residents. Harbor Resources Manager Miller discussed future Harbor -wide channel dredging. Mayor Pro Tem Duffield assured the community that Harbor dredging was a top priority. Harbor Resources Manager Miller presented information on recent modifications to private pier and public mooring fees and rents, and vessel/holding tank pump -outs. In response to Mayor Muldoon's question, Harbor Resources Manager Miller stated he had budgeted $150,000 for two pumps. Council Member Avery stated the pump -out stations were important to water quality. Mayor Pro Tem Duffield suggested also adding a drop-off location for used oil and diesel fuel. Without objection, City Manager Kiff suggested continuing the presentation to the next study session. John Panek suggested installing hot water pressure washing facilities at the pump -out station. Volume 63 - Page 199 City of Newport Beach Study Session and Regular Meeting February 28, 2017 SS4. Harbor Mooring Regulation Modifications Harbor Resources Manager Miller presented a PowerPoint presentation, outlining the history of moorings, summary of changes in rates, mooring transfers and fees. In response to Mayor Muldoon's question, Harbor Resources Manager Miller reported the current transfer fee was $708 and the proposed 10% of fair market value is difficult to obtain. In response to Council Member Dixon's question, Harbor Resources Manager Miller stated the current transfer fee was 50% of the annual permit fee. He confirmed that this has been in place since 2010. Council Member Avery stated the value of a 40 -foot mooring was between $20,000 to $25,000, so the fee would be approximately $2000. Council Member Dixon discussed the transparency effort to post sold moorings. In response to Council Member O'Neill's question, Assistant City Attorney Torres explained the code allowing the information to be posted on the City's website or on a third party website. Council Member O Neill questioned how the information could be verified. Council Member Avery agreed with the value of retaining sales data. Council Member Peotter expressed concern about a third party website and suggested that the official tracking be done by the City. Council Member Avery concurred. Harbor Resources Manager Miller highlighted the summary of potential changes. In response to Council Member Dixon's question, Assistant City Attorney Torres explained that the City managed the tidelands on behalf of the State. Council Member Dixon proposed transfer fees of 150% of the annual fee and indicated support for basing the fee on the market rate. Harbor Resources Manager Miller explained the Harbor Commission's determination for the transfer fee was to be 75% of the annual fee. He stated the current fee is 50% of the annual permit fee. He explained how moorings might be retained after a derelict boat is removed. Council Member Dixon indicated support for retaining the .gov website for moorings. Council Member Avery discussed insurance requirements and suggested additional resources towards ensuring adequate insurance. Referencing the staff report, Council Member O Neill discussed deeming the mooring vacant, sub -permitting, the three-day notification to reclaim the mooring, and the repair of damage to mooring equipment. He questioned why the City was taking on the liability. Harbor Resources Manager Miller explained that, if the City was renting out a mooring and it was damaged, the City should justify and seek damages from the renter. Council Member O'Neill questioned why the City would sublet. Harbor Resources Manager Miller explained the fees collected on the rentals. Mayor Muldoon asked the amount of damages for a recent incident. Harbor Resources Manager Miller stated the damages were $400 to 600. Mayor Muldoon believed damages was a rare occurrence and did not expose the City to much risk. In response to Council Member Peotter's questions, Harbor Resources Manager Miller reported proof of insurance was due with fees. He added that vessel registration was monitored by Harbor Patrol and registered/documented vessels were required to have insurance. Council Member Peotter questioned whether the City should be a transfer agent. Volume 63 - Page 200 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Harbor Resources Manager Miller clarified that mooring transfers were facilitated by the Harbor Patrol. Regarding dye packs, Council Member Peotter suggested requiring the use of dye packs and that the agreement include a provision to allow relocation of boats for the removal of sea lions and penalties for late payments. Mayor Pro Tem Duffield discussed the prior requirement to have a boat in the mooring to retain the mooring and anchoring in the mooring field. He indicated support for allowing boats to be moved in order to remove sea lions. Council Member Herdman concurred with Council Member Dixon relative to potentially increasing the fee to 100% or greater. Harbor Resources Manager Miller commented on mooring payment delinquencies. Council Member Herdman suggested mooring fees be tacked on to water fees. Council Member Avery confirmed that mooring fees were included with water bills, suggested adding non -City residents to the billing process, and thanked the mooring permittees for collaborating with the Harbor Commission. Brian Ouzounian asked if onshore moorings were required to have insurance and whether guest renters provided insurance certificates, believing there was routine damage from guests using moorings. He asked if insurance was required on boats not in the mooring and if sales tax was paid on mooring transfers. Harbor Resources Manager Miller stated non- visible damage was difficult to charge to a renter and that insurance should be provided for all vessels. Mayor Muldoon stated Assistant City Attorney Torres indicated there was no sales tax since it was a leasehold interest. John Panek asked if the City reimbursed the person for taking possession of a mooring and if owners were compensated for the rental of the mooring. He provided alternative methods for removing sea lions. Assistant City Attorney Torres explained that the moorings were being rented rather than used for a fee. He explained that the City owned the tidelands and personal property would be paid for by the City at fair market value. Council Member Peotter noted that payment for personal property would be offset by rent owed. Mayor Muldoon suggested implementing the lowest possible fee. Dan Gribble stated moorings were purchased for affordability. He asked why the prices were increasing and what the fee went towards. He stated it would be difficult to base the fee on sale price and questioned the purpose of monitoring the mooring sales. He encouraged Council to pass the regulations as proposed by the Harbor Patrol and Newport Mooring Association (NMA). Diana Davis asked if live -aboard residents could use the showers at Marina Park Patricia Newton, NMA, agreed with the Harbor Commission's recommendations regarding transfer of mooring permits and annual fees. In response to Council Member Dixon's question, Ms. Newton stated the NMA accepted the Harbor Commission's recommendation that the transfer fee be set at 75% of the annual fee. Volume 63 - Page 201 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Jim Mosher believed the harbor code was difficult to understand. He suggested adding the requirement that transfers occur at the Harbor Patrol Office. He expressed the opinion that it was reasonable for the public to be skeptical when the regulations were worked out with those that would benefit from the regulations. He questioned private control of public waters. Mayor Muldoon explained that rental revenues went to the City. John Fradkin urged Council to allow transferability past November 2020. He discussed the cost of purchasing his mooring and believed the sunset date would implement a taking of property. Richard Dorn stated the Harbor Commission had decided moorings would be a permit rather than rent. Carter Ford, NMA Board Member, believed the mooring renter should be held accountable for any damages, suggested collecting fees every two months, explained that NMA had offered to maintain the mooring sale website page but would be happy if the City maintained the website, and believed the transfer fee should be tied to the annual fee. He noted that mooring transfers were limited to one per year. Chuck South discussed transfer and mooring fees and believed sales would be difficult to track. Council Member Peotter pointed out that high rents made the value of the moorings low. He agreed with Assistant City Attorney Torres that the transfer fee was part of the rent. He believed the number of transfers should be unlimited and that he was in favor of charging the lowest rate feasible and offering more services. Mayor Muldoon thanked the permittees for working on the matter. He stated he would support 50% of the annual permit fee and staff's recommendations. City Manager Kiff requested Council consensus on the transfer fee. Mayor Pro Tem Duffy and Mayor Muldoon indicated support for 50% of the annual permit fee. Council Member O'Neill, Council Member Dixon, Council Member Avery, Council Member Herdman, and Council Member Peotter indicated support for utilizing 75% of the fee. Council Member Dixon thanked the NMA for its hard work. She suggested additional amenities and services be provided in order to justify the fee. III. PUBLIC COMMENTS - None Assistant City Attorney Torres announced that the City Council would adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Volume 63 - Page 202 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Property: 883 West 15th Street, Newport Beach 92663; APN: 424-011-37 Agency Negotiator. Dave Kiff, City Manager and Carol Jacobs, Assistant City Manager Negotiating Parties: Pacifica Christian High School - Orange County, a California non-profit corporation Under Negotiation: Instruction to negotiator regarding price and terms of payment B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957 (b)(1)) Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk C. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6 (a)) Agency Designated Representative: Council Member Diane Dixon Unrepresented Employees: Dave Kiff, City Manager, Aaron C. Harp, City Attorney, and Leilani Brown, City Clerk. V. RECESSED - 6:25 p.m. VI. RECONVENED AT 7:05 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon VIII. CLOSED SESSION REPORT Assistant City Attorney Torres reported that there were no reportable actions taken. DL PLEDGE OF ALLEGIANCE - Council Member Dixon X. INVOCATION - Council Member Herdman XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member O Neill stated he attended the Corona del Mar Chamber luncheon; Newport Coast Pavilions Ribbon Cutting; and the City's blood drive. Council Member Dixon reminded residents of the Women in Newport Networking (WiNN) meeting on March 16, 2017, from 5:30 p.m. to 7:00 p.m., in the Civic Center Community Center. She announced that Michelle Steel, Chair of the Orange County Board of Supervisors, would be speaking. Council Member Herdman stated he participated in Fire Ops 101; visited the Newport Beach Animal Shelter, and attended the Corona del Mar Residents Association, Newport -Mesa Unified School District meeting about the Corona del Mar Stadium, and Ralph Rodheim's celebration of life. He Volume 63 - Page 203 City of Newport Beach Study Session and Regular Meeting February 28, 2017 reported he was also working with the Balboa Island Museum to find a permanent home and spoke at the St. Andrew's Presbyterian Church's Men's Breakfast. Council Member Avery discussed the recent winds on the Harbor and stated he was impressed that everything held together. Mayor Pro Tem Duffield concurred. XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Sending a Letter in Support of St. James the Great Re -securing Their Church (Dixon) The City Council unanimously concurred to place the matter on a future agenda. • Summary of the Existing General Plan Designation and Zoning for the Newport Beach Tennis Club (Muldoon) The City Council unanimously concurred to place the matter on a future agenda. • Election and Campaign Reform (Dixon) The City Council unanimously concurred to place the matter on a future agenda. • Getting Confirmation from HOAs that a Proposed Residential Project Complies with the HONs CC&Rs Prior to the City's Acceptance of the Building Plans (Herdman) The City Council unanimously concurred to place the matter on a future agenda. • Revisiting the Council's November 2016 Direction Regarding Bayside Drive Changes (Herdman, Muldoon) The City Council unanimously concurred to place the matter on a future agenda. • Study Session on Council Policy F-6 (Debt Management Policy) (O'Neill) The City Council unanimously concurred to place the matter on a future agenda, preferably at a meeting in April XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher suggested the Mayor read the titles of the Consent Calendar items. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the February 14, 2017 City Council Special Meeting and January 24, 2017 City Council Meeting [100-2017] 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. ORDINANCE FOR ADOPTION 3. Prohibition of Water -Propelled Vessels Above the Water Surface in Newport Harbor (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; and Volume 63 - Page 204 City of Newport Beach Study Session and Regular Meeting February 28, 2017 b) Conduct second reading and adopt 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. 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. RESOLUTION FOR ADOPTION 5. Resolution to Revise Parking Restrictions Near Corona del Mar High School [100- 2017] 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) Adopt Resolution 2017.14, A Resolution of the City Council of the City of Newport Beach, California, Establishing `No Parking" Restrictions on the Designated Streets on Specific Days and Times to Improve Street Sweeping Effectiveness and Repealing Resolution No. 2015-73. CONTRACTS AND AGREEMENTS 6. Sewer Main Lining and -Repairs Project - Notice of Completion for Contract No. 6363 (Project No. 15503) [381100-2017] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. (On June 14, 2016, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301); 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 the Faithful Performance Bond one year after the acceptance by the City Council. Balboa Island Seawall - Approval of Amendment No. 2 to the Professional Services Agreement with COWI (15H11) (C-6419) [381100-2017] 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; and b) Approve Amendment No. 2 to the Professional Services Agreement (PSA) with COWI of Long Beach, California, for the Balboa Island Seawall Coping Repair at a not -to -exceed fee of $22,370.00, and authorize the Mayor and City Clerk to execute the Amendment. Council Member Herdman recused himself from Item 7 due to a conflict of interest in real property within 500 -feet of the project. 8. Approve Amendment No. 2 with Great Scott Tree Service, Inc. for Tree Maintenance Services (C-5648) [381100-2017] 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; and b) Approve Amendment No. 2 to the Maintenance Services Agreement with Great Scott Tree Service, Inc. to increase the total amount not to exceed to $1,700,000 per contract year, and authorize the Mayor and City Clerk to sign the agreement. Volume 63 - Page 205 City of Newport Beach Study Session and Regular Meeting February 28, 2017 9. Agreement for Retiree Health Savings Plan Claims and Reimbursement Administration (C-5529) [381100-2017] 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; and b) Waive the contract award requirements in Council Policy F-14 and authorize the Mayor to enter into the proposed one-year administrative services agreement with Meritain to act as the City's RHS plan claims and reimbursement administrator pursuant to a single source justification. MISCELLANEOUS 10. Planning Commission Agenda for the February 23, 2017 Meeting [100-2017] Receive and file. 11. Water Quality/Coastal Tidelands Committee Appointments [241100-2017] 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; b) Confirm Mayor Kevin Muldoon's appointment of Council Member Brad Avery as the Chair of the Water Quality/Coastal Tidelands Committee; c) Waive the portion of Council Policy A-2 (Board, Commission and Committee Appointments) which requires two or more applications for each vacant seat; and d) Reappoint Carl Cassidy to the Water Quality/Coastal Tidelands Committee. Motion by Mayor Pro Tem Duffield, seconded by Council Member Peotter, to approve the Consent Calendar, except for the item removed (Item 4); and noting the "no" vote by Mayor Muldoon to Item 3, 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. ITEM REMOVED FROM THE CONSENT CALENDAR 4. Resolution Supporting Submission of Grant Applications Under the Orange County Transportation Authority (OCTA) Measure M2 Tier 1 Environmental Cleanup Program (17X12) [100-20171 In response to Council Member O'Neill's question, Public Works Director Webb stated the language in Section 1 was required by OCTA. He stated the application was for trash collection devices, not specifically water wheels. He presented a slide of the proposed water wheel. Council Member O'Neill asked if the language in Section 1 could be modified. Assistant City Attorney Torres stated the language would be clarified in the final resolution. Council Member Dixon stated the item was premature, but is being done as a placeholder in order to address a trash problem and to submit a grant application. Public Works Director Webb confirmed that staff is seeking Council direction. Volume 63 - Page 206 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Motion by Council Member O'Neill, seconded by Council Member Peotter, 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) adopt amended Resolution 2017.13, A Resolution of the City Council of the City of Newport Beach, California, Supporting the Submission of a Grant Proposal for Funding Under the Orange County Transportation Authority Environmental Cleanup Tier 1 Grant Program and Authorizing the City Manager or Designee to Submit the Proposal. Jim Mosher discussed certification of environmental impact reports and believed the proposed amendment to Section 1 was not adequate. Mike Glenn stated the City should not request funds before knowing its purpose. Council Member O'Neill requested that Section 1 be amended to "The City anticipates supporting the grant proposal." Mayor Pro Tem Duffield indicated support for the water wheel. He discussed volunteer trash collection efforts. He expressed his shock that the California Department of Fish and Wildlife was not supportive of this. He urged efforts to collect trash prior to it entering the Upper Bay. Council Member Peotter concurred with Mayor Piro Tem Duffield and indicated support for the grant. Council Member Herdman expressed interest in learning more about the water wheel and indicated support for the grant application. 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 discussed the amount paid to the Planning Commission and suggested increasing the amount. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Dixon announced that the Finance Committee will meet on March 16, 2017, at 3:00 p.m. XIX. PUBLIC HEARING 12. Santa Ana Avenue Cottages Appeal Located at 20452 Santa Ana Avenue (PA2016-069) [100-2017] Community Development Director Brandt introduced the item and proposed process. Associate Planner Zdeba presented a PowerPoint presentation, outlining the project details, vicinity map, land use, zoning, site photographs, site plan, elevations, rendering, consistency with Zoning Code standards, background, and staffs recommendation. Volume 63 - Page 207 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Mayor Muldoon opened the public hearing. Dunn Voyer, Appellant/Coalition Against Santa Ana Avenue Cottages, indicated opposition to the three-story property, believing it did not fit the neighborhood, would breach the neighbors' privacy, the Planning Commission ignored concerns, would impact property values of surrounding properties, there would be legal exposure to the City, Community Development Director Brandt's testimony was false, there were traffic and public safety concerns, the project was a fire hazard, and the project was a poor design. Matt White, project builder, speaking on behalf of the applicant, Adrienne Brandes, presented a PowerPoint introducing the team, site plan, project specifications, parking improvements, color and materials, and landscape plan. He responded to Mr. Voyer's comments regarding surrounding properties, other three-story units, and the Planning Commission's consideration. He expressed excitement about the project. In response to Mayor Muldoon's question, Mr. White explained the open space for the ADA unit. Sergio Sendowsky, architect with Knitter Partners International, Inc., explained that the units had different orientations. Mr. White added the property was zoned for eight units but they were only proposing seven units. Rob Dodman presented handouts displaying photographs of traffic in the area and showing no three-story structures. He urged Council to review the area. Berkley Egenes expressed concern about the safety of the intersection and increased traffic. Tim Stoaks objected to the three-story fagade and discussed the character of the neighborhood. Lila Crespin urged Council to consider the neighborhood. Jeff Schuster discussed traffic at the intersection and believed the project was out of character. Jim Mosher noted the zoning of the area and asked why the project was not required to be multi- family detached units. Taz Nichol suggested tree removal to reduce traffic issues. He expressed support for the project. Dunn Voyer reiterated that he believed the project did not fit the area. He suggested the plans be modified to have two-story units. He threatened litigation if the project was approved. Matt White believed the project would improve traffic and safety with modifications to the sidewalk. He stated the trash cans would be retained onsite and be picked up from the property. Hearing no further testimony, Mayor Muldoon closed the public hearing. In response to Council Member Dixon's question, Community Development Director Brandt clarified that the zoning currently allowed 11 units and the proposed project was only for seven units. She reported that there are height limitations, not limitations on the number of stories. She discussed existing three-story units throughout the City and believed ingress/egress from the property would be an improvement to existing conditions. In response to Council questions, Sergio Sendowsky stated subterranean development would be cost prohibitive. Adrienne Brandes, property owner, believed that building seven units would be more aesthetically appealing. Volume 63 - Page 208 City of Newport Beach Study Session and Regular Meeting February 28, 2017 In response to Council questions, Community Development Director Brandt discussed setbacks on the Ebb Tide project compared to the proposed project. She also noted that the proposed project was allowed under the City's zoning. She further discussed the height limit for the RMD Zone which was updated in the 2010 Zoning Code. Council Member Dixon asked if the City had considered the neighboring Costa Mesa homes. Community Development Director Brandt reminded Council that the area was annexed into the City and was an area in transition. She discussed the proximity to open space in the Santa Ana Country Club. Council Member Herdman stated he visited the site and his first impression was that the project would fit into the neighborhood. He reported that the property was surrounded by multi -family homes, with the exception of the single-family residences. He expressed support for the Planning Commission's recommendation and the project. In response to Mayor Pro Tem Duffield's question, Community Development Director Brandt stated the property was limited to 11 -units. Mayor Pro Tem Duffield pointed out that a very large single-family residence could be built on the property. He asked about Mr. Mosher's comment that the project had to be detached units. Community Development Director Brandt reported that the name of the zone was a carry-over from the County, but the actual development standards were for multi -family. Council Member Avery discussed concerns with parking. Community Development Director Brandt stated the CC&Rs would govern parking and garages would have to be used for parking. Motion by Council Member Peotter, seconded by Council Member Herdman, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 (In -Fill Development) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; and b) adopt Resolution No. 2017-15, AResolution of the City Council of Newport Beach, California, Upholding the Planning Commission's Approval of Major Site Development Review No. SD2016-002 for a Seven -Unit Residential Condominium Project Located at 20452 Santa Ana Avenue (PA2016-069). The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Nays: Council Member Dixon Mayor Muldoon recessed the meeting at 8:29 p.m. and reconvened the meeting at 8:48 p.m. with all members of the City Council in attendance. XX. CURRENT BUSINESS 13. Lido Village and West Newport Water Main Replacement -Award of Contract No. 7001- 2 (16W14) [381100-20171 Mayor Pro Tern Duffield recused himself from this item due to a business interest within 500 -feet of the project. Volume 63 - Page 209 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Motion by Council Member Dixon. seconded by Council Member Peotter, to a) find this project exempt from the California Environmental Quality Act pursuant to Sections 15302 (replacement of existing facilities involving negligible expansion of capacity) 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; b) approve the project drawings and specifications; c) award Contract No. 7001-2 to Paulus Engineering, Inc. for the total bid price of $3,152,928.00, and authorize the Mayor and City Clerk to execute the contract; d) establish $300,000.00 (approximately 10 percent) contingency amount to cover the cost of unforeseen work not included in the original contract; and e) approve Budget Amendment No. 17BA-026 appropriating $2,289,353.00 from the unappropriated Water Capital fund balance to Account No. 70201931- 980000-16W14; appropriating $354,684.00 from the unappropriated Wastewater Capital fund balance to Account No. 71201-980000-16W 14; and recognizing reimbursement revenue from Lido House, LLC in the amount of $43,390.30 and appropriating $43,390.30 to Account 13501-980000- 16W14 for the Lido Village Water Main Replacement project. In response to Council Member Dixon's question, Deputy Public Works Director Vukojevic explained that permit parking and phasing was proposed to remedy parking issues during the project. Council Member O'Neill noted that wastewater funds were being used which was in a deficit. 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 Muldoon Recused: Mayor Pro Tem Duffield 14. Newport Beach Sand Replenishment Maintenance - Award of Contract No. 8309-1 (171104) [381100-2017] Council Member Herdman recused himself from this item due to real property interest located in the vicinity of the project. Motion by Council Member Dixon. seconded by Council Member O'Neill, to a) concur with the County of Orange Addendum IP -15-359 as part of Environmental Impact Report No. 583 as the necessary environmental clearances and regulatory permitting for the project; b) approve the project specifications; c) award Contract No. 8309-1 to GCI Construction, Inc. (GCI) for the amount of $753,475.00, and authorize the Mayor and City Clerk to execute the contract; and d) approve Budget Amendment No. 17BA-027 appropriating project savings totaling $414,000.00 from the General Fund Capital unappropriated fund balance to Account No. 01201928-980000-17H04 for Beach / Bay Sand Management. Jim Mosher discussed the increased cost for the project and requested clarification on the increase. Mayor Pro Tem Duffield asked how often nature would impact the sand and if there was possible mitigation. Public Works Director Webb stated river sand was being used which would hopefully remain in place longer. He indicated groin maintenance was helpful. In response to Council Member Avery's question, Public Works Director Webb discussed the quantity of sand and number of truck trips. Council Member Avery discussed the enormity of the project being undertaken by the City. Volume 63 - Page 210 City of Newport Beach Study Session and Regular Meeting February 28, 2017 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 15. Petition for Referendum of Resolution No. 2016-127 Relating to the Museum House Residential Project [39/100-2017] City Clerk Brown presented the staff report Motion by Council Member Herdman to a) determine this action is exempt from the CEQA pursuant to CEQA Guidelines Section 15270, which states that projects that a public agency rejects or disapproves are not subject to CEQA review; and b) repeal Resolution No. 2016-127 in its entirety (and the related approvals) by waiving full reading, directing the City Clerk to read by title only, introducing Ordinance No. 2017-3, An Ordinance of the City Council of the City of Newport Beach, California, Repealing All Approvals for the 100 -Unit Museum House Residential Project Located at 850 San Clemente Drive (PA2015-152), and passing to second reading on March 14, 2017. In response to Council questions, Assistant City Attorney Torres explained that Recommendation A was the CEQA finding for repealing all ordinances and resolutions and Recommendation B introduced the ordinance repealing the approvals. City Clerk Brown explained the election costs outlined in the staff report and believed the City was not eligible for an all -mail ballot election. Referencing the OCMA Urban Housing LLC's, Museum House applicant, correspondence, Nancy Skinner requested the Environmental Impact Report (EIR) be rescinded with the other approvals. Susan Skinner noted a quarter of the registered voters signed the referendum petition and believed it would be a waste of City funds to put the item to a vote of the people. She suggested rescinding all the approvals, rather than hold an election. Bruce Bartram addressed Council regarding printing the exhibits in the sample ballot, discussed Council's requirement to attach the EIR to the referendum petition, believed Council invited the error that was the subject of the lawsuit, stated the citizens had the right to have local legislation reviewed by the people, and urged Council to vote to rescind the project. Dean Stratton expressed disgust that there was no second to the motion. He questioned the City's motivation and asked if the residents should recall the Council Members. Patty Bowman-Mechling asked Council why they are doing nothing to resolve the matter. Bettina Deininger questioned Council and believed the project was approved to garnish the developer's money. She urged Council to rescind the project approvals. Danielle Deistel believed the building was gorgeous and would increase property values. Rollin Daniel took issue with Council and stated he was new to the process as were many other referendum petition signers. Volume 63 - Page 211 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Barry Allen asked the Council Members to explain their positions. He believed the measure would fail at an election and cost the City too much money. He questioned why Council would put the matter to a vote. Janae Lee stated they lived in Newport Beach for its quality of life, but current issues were infringing on the character of the community. She stated the signatures were collected despite unusual circumstances and questioned why Council would want to put the matter to a vote if it will fail. John Petry noted the referendum petition indicated opposition to the Museum House. He expressed concern about the political relationship between certain Council Members and the election consultant involved in the project. He urged Council to take a position against the project. Tom Fredericks questioned why Council did not second the motion Jim Warren wondered why the City supported the project. He believed the project should not be used to reduce the City's unfunded pension liability and requested that Council consider the people's desires. Mike Glenn discussed the size of the referendum petition and inclusion in the sample ballot. He highlighted Council's options to rescind or place the matter on the ballot, and how the public would view the decision. Patrick Strader, Related California, discussed the Line in the Sand effort. He reminded Council of the lengthy project review process, Council Member Herdman's logic on Item 12 to support the Planning Commission's recommendation, believed the purpose of the referendum petition was to put the project to a vote of the people, discussed continued efforts to thwart the project and the documentation attached to the referendum petition, and recommended setting the matter for a vote or continuing the item to allow the Court to determine if the referendum petition was valid. Lori Petry discussed a Speak Up Newport meeting at which the developer indicated the project would stop if it went to a vote of the people. She discussed the signature gathering process and believed people were looking at the decision as a reflection of the Council Members. Debbie Allen discussed her efforts to gather signatures and believed residents did not want the project. Tom Fredericks suggested that Related California pay for the election if the measure failed Karen Carlson believed the people of the City did not want the project. Ellen Trujillo stated not everyone was against the Museum House. She discussed her negative experience with referendum petition gatherers at her door. She noted the need for housing for the City's aging community. Lynn Swain thanked Council Member Herdman for making his motion. She believed the people had spoken and requested that Council consider its opinion. Linda Watkins asked how the City got to the point where citizens are questioning Council's ethics. Volume 63 - Page 212 City of Newport Beach Study Session and Regular Meeting February 28, 2017 Council Member Avery stated he liked the project from the beginning, but was disappointed in what followed. He questioned the community's support for project, stated the project was well designed, and believed it would not impact the City, but he would not vote against the will of the people. Council Member Avery seconded Council Member Herdman's motion to a) determine this action is exempt from the CEQA pursuant to CEQA Guidelines Section 15270, which states that projects that a public agency rejects or disapproves are not subject to CEQA review; and b) repeal Resolution No. 2016-127 in its entirety (and the related approvals) by waiving full reading, directing the City Clerk to read by title only, introducing Ordinance No. 2017-3, An Ordinance of the City Council of the City of Newport Beach, California, Repealing All Approvals for the 100 - Unit Museum House Residential Project Located at 850 San Clemente Drive (PA2015-152), and passing to second reading on March 14, 2017. Mayor Dixon stated she initially voted for the project, but would vote to rescind the approvals. She asked for clarification on keeping the EIR active. Community Development Director Brandt explained that the environmental document was a full disclosure document, analyzing the property and proposed project. She reported the EIR could be a resource document for another project proposed at the location. Council Member Dixon stated she could support retaining the EIR. She thanked the residents for their opinions, but expressed disappointment in the personal attacks. Mayor Pro Tem Duffield stated he was not a politician, just a "boat guy who loved the community," and discussed the referendum petition gatherer's sales pitch. Council Member Herdman believed opposition was apparent at the first scoping meeting. He stated his job was to represent the majority. Council Member O'Neill discussed recent litigation related to the project. He asked Council Member Dixon to clarify her comments on the EIR. Council Member Dixon reiterated that she could be in favor of retaining the EIR since it could be used as a resource document. Council Member Herdman stated he would not approve a friendly amendment to retain the EIR. Council Member O'Neill stated his understanding that the referendum petition was not focused on the EIR resolution (Resolution No. 2016-126). Assistant City Attorney Torres explained that the referendum related to Resolution No. 2016-127 regarding the General Plan Amendment. He stated the Newport Beach Municipal Code required that the Zoning Code be consistent with the General Plan, therefore, staff is recommending that all components of the project be repealed if that was Council's direction. However, he agreed that the EIR could be separated. Council Member Herdman questioned why it was included as part of a rescission package. Assistant City Attorney Torres stated staffs interpretation was that it would be a rescission of all components. Council Member O'Neill reauested a friendly amendment to the motion, seconded by Council Member Dixon to remove Section 1 of Ordinance No. 2017-3 related to the EIR. Council Member Peotter thanked the community for its input and efforts. He stated he would not support the motion, but was in favor of putting the matter on the ballot as the community had requested through the referendum petition process. Mayor Muldoon stated there was a need to have developers develop appropriately in the City and requested assistance with conducting another General Plan update. He stated he would be voting to rescind the project in an effort to save the City money. Volume 63 - Page 213 City of Newport Beach Study Session and Regular Meeting February 28, 2017 City Manager Kiff requested and received confirmation from Council Member O'Neill that the friendly amendment would be to only remove Section 1 from the Ordinance. The friendly amendment 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 The original motion, as amended by the friendly amendment, to a) determine this action is exempt from the CEQA pursuant to CEQA Guidelines Section 15270, which states that projects that a public agency rejects or disapproves are not subject to CEQA review; and b) introduce Ordinance No. 2017-3, An Ordinance of the City Council of the City ofNewport Beach, California, Repealing Approvals for the 100 -Unit Museum House Residential Project Located at 850 San Clemente Drive (PA2015-152), and passing to second reading on March 14, 2017, carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Mayor Pro Tem Duffield, Mayor Muldoon Nays: Council Member Peotter, Council Member O'Neill None M. ADJOURNMENT - 10:04 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 February 23, 2017, at 4:00 p.m. City Clerk Y .,' X4\\'1 4100 Volume 63 - Page 214