HomeMy WebLinkAbout01/29/2018 - Special MeetingCITY OF NEWPORT BEACH
City Council Minutes
Planning Session (Special Meeting)
January 29, 2018
I. ROLL CALL - 5:30 p.m.
Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff Herdman,
Council Member Scott Peotter, Mayor Pro Tem Will O'Neill, Mayor Duffy Duffield
Absent: Council Member Kevin Muldoon (excused)
Pledge of Allegiance - Council Member Avery
II. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Susan Skinner requested that a goal be added for the City to reestablish trust with the residents and
provided examples of issues from the previous General Plan Update election.
Nancy Gardner expressed concern about the loss of marine -related businesses in the harbor and
suggested establishing something similar to the Williamson Act for the boating community.
III. UPDATE ON FISCAL ISSUES
Finance Director Matusiewicz and City Manager Kiff provided a PowerPoint presentation outlining the
ending FY 2016-17 General Fund results related to surplus, property tax, sales tax, Transient
Occupancy Tax (TOT), and General Fund revenue trends, discussed short and long term funding
challenges, unfunded pension liability and its trend, last year's payment strategy and the accelerated
payment history, claims and judgments, possible allocations of the surplus money, and takeaways for
today.
In response to Council questions, City Manager Kiff and Finance Director Matusiewicz explained why
the City should still remain cautious when dealing with sales tax, TOT, and unfunded pension liability
assumptions and estimates; discussed unfunded pension liability; the City's actions toward lowering it
and the drivers creating the large amount; reported on potential additional funding for harbor uses and
public safety; provided examples of neighborhood projects; and explained the Facilities Financing Plan
(FFP) and the current annual allocation toward the fund.
Regarding short and long term funding challenges, Council Member Herdman expressed the need for
increased enforcement on the boardwalks and public areas.
Mayor Pro Tem O'Neill expressed hope that future Councils will set a goal to not make any reductions
in the amount of FFP funding contributions.
Nancy Gardner noted that tax dollars for online shopping will be going before the Supreme Court and
asked if the City is supporting any group that is supporting this. Finance Director Matusiewicz noted
the City receives an allocation through the County tax pool for online purchases; however, it is a much
smaller portion than through direct sales in the City.
Denys Oberman asked for confirmation that the community has adequate provisions for fire, safety and
enforcement needs, and if there are any provisions to revisit the pension issue in order to fill in essential
public needs.
Nancy Skinner thanked Council for addressing the unfunded mandate for pensions and thanked staff
for its conservative approach.
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Vartan [Piroumian] asked the City to make crime prevention a higher priority, noting the increase of
crimes in the Dover Shores neighborhood.
In response to Carmen Rawson's question, City Manager Kiff noted the revenue trend is not problematic
and is detailed in the budget document, discussed workers compensation, and explained the pension
benefits for new employees.
David Tanner requested and received confirmation from City Manager Kiff that the City does take all
economic trends into consideration, including the Federal tax cut.
Noting the importance for Council in handling the public's money, Jim Mosher suggested the City
produce an annual financial report similar to what the Orange County Auditor -Controller publishes.
Roy Englebrecht noted he will be running for City Council in 2018 because he feels he has solutions to
the unfunded liability problem.
Allen Beek expressed concerns about unfunded pension liability and asked where citizens can find more
information. Mayor Pro Tem O'Neill reported that pension is discussed at every Finance Committee
meeting.
IV. A MODERN VISION FOR THE HARBOR
Using a PowerPoint presentation, City Manager Kiff and Public Works Director Webb highlighted the
harbor operations program that began Summer 2017, code enforcement on the harbor, next steps,
potential phases, dredging projects, and explained what a Port Master Plan is and its benefits.
In response to Council questions, City Manager Kiff indicated that the harbor management review will
consider whether to establish a harbor division or harbor department, if it could involve lifeguards, and
other issues. He also explained the previous harbor agreement with the County and what is currently
being done relative to code/noise enforcement and derelict vessels.
Council Member Peotter likened the Port Master Plan to the Local Coastal Program (LCP), and
explained how the City would handle specific approvals that normally go before the California Coastal
Commission, which would save time and money.
Mayor Duffield expressed the need for a Port Master Plan and the importance of the properties on the
harbor, and explained that the plan could assist with creating an affordable method to dredge and
improve properties on the water.
Nancy Gardner recommended following up with the U.S. Army Corps of Engineers since they were
interested in pursuing a dredging project.
Dennis Baker discussed the benefits of having City staff patrolling the harbor versus having the Orange
County Sheriffs Department staff do the patrolling.
Vicki Cubeiro relayed an incident she experienced and expressed safety concerns relative to Mooring
Field B, believing it was not posted properly.
Carmen Rawson requested and received confirmation that it would cost $17 million to remove the legacy
material, and took issue with Phase III since Peninsula residents have been asking For more law
enforcement for some time.
Nancy Skinner suggested that the City purchase waterfront property so it can lease it to a business that
can assist with maintaining the boats on the harbor.
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Jim Mosher agreed that the harbor benefits everyone, but noted that a majority of the residents do not
live on the harbor or own a boat, and asked that the City not forget the needs of the other residents.
Regarding the Port Master Plan, he believed that the laws would need to be administered according to
the State, not local laws, and expressed concern that the City will have difficulty understanding this
responsibility.
Council Member Dixon pointed out that the harbor generates a total economic impact of $348 million
for the County.
Mayor Duffield recused himself from Newport Beach Municipal Code Title 17 discussions due
to business interests.
Mayor Pro Tem O'Neill agreed Title 17 needs to be rewritten; however, requested that the simpler
amendments be brought back as soon as possible since the more difficult amendments require outreach
meetings and discussions with harbor staff, the Harbor Commission, and the City Council. He expressed
the opinion that he prefers forming a harbor department, not just a harbor division.
Council Member Avery noted that there are many examples of cities running their own harbors with
Sheriffs Department presence, and believed this would allow for a better response to residents and
businesses.
David Tanner requested the amendment take advances in technology and automation into consideration
because it could affect employee counts and City finances.
V. WHETHER AND WHEN TO DO A GENERAL PLAN UPDATE
Community Development Director Jurjis utilized a PowerPoint presentation to discuss the history of
the General Plan, current status of the Housing Element, AB691, different approaches, and the
tentative schedule for Concept 1 (Learn, Talk, and Listen).
In response to Council questions, Community Development Director Jurjis and Deputy Community
Development Director Campbell indicated Concept 1 would probably involve more than one meeting per
Council district, the meetings would look at a wider range of land uses, what is working and what is not
working, and believed the City will be in a better position to determine if a complete or partial General
Plan Update is needed after the meetings.
Council Member Herdman believed education should also be provided at the meetings.
Fred Fourcher requested the City also involve airport business owners in the meetings.
Susan Skinner asked for a commitment to transparency, accountability, and a level playing field for
residents during the upcoming General Plan Update process. She read the previous ballot summary and
discussed what she believes the General Plan Update actually did.
Dorothy Kraus, Vice President of Stop Polluting Our Newport (SPON), stated SPON initiated its own
citizens General Plan advisory committee and conducted workshops, provided their reasons for why the
General Plan Update needs to start now, indicated they will continue the workshops through the
election, and requested Council move forward with the process.
Dennis Baker, Treasurer of SPON, explained that the public only gets to vote on a General Plan Update
if it triggers Greenlight, believed there has been too many amendments to the General Plan over the
years, and expressed the opinion that citizens should not have to keep protesting the General Plan,
which may mean it should be revisited.
Adriana Fourcher suggested moving forward with Concept 2 (start the General Plan Update now) to set
the scope and determine which elements are a priority.
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Denys Oberman believed the General Plan needs to be looked at now and through a process that aligns
the passions and interests of residents and businesses with the City's interests, believing doing this will
create a General Plan that is meaningful.
Jim Mosher suggested using the Community Newsletter as a public communication tool for the update
process, cautioned about going too far with a comprehensive General Plan Update without having the
Regional Housing Need Assesment (RHNA) numbers, noted that the Harbor and Bay Element also
needs to be considered when considering land uses, and explained his definition of "compliant"
David Tanner noted that the State's efforts may affect the General Plan Update process, suggested
moving forward with evaluating the existing General Plan and California Environmental Quality Act
(CEQA) guideline updates, in light of regulatory changes, discussed AB 2299, and suggested amending
Ordinance No. 2017-11.
In response to Council questions, Community Development Director Jurjis and Deputy Community
Development Director Campbell indicated that staff believes the General Plan is compliant, even though
some elements may be out of date or need updating; asserted that he would never recommend a plan
that would put the lives of residents at stake, as suggested by SPON's attorney; noted most cities are
on the same housing element cycle as the City but will take different approaches for updating; and
reported most of the housing opportunity sites are in the airport area.
Mayor Pro Tem O'Neill stated that affordable housing is an issue for every city, emphasized the need to
be vigilant in maintaining local control, expressed concern with going through the process without
taking RHNA numbers into consideration, and assured everyone that no interest group dominates over
another. He suggested using staff to lead the meetings, then bring in a consultant.
Council Member Dixon noted that State mandates will drive the timing of the General Plan Update, but
the City should try to do something. She suggested conducting the meetings, but map out a parallel
process that would not be affected by RHNA.
Council Member Peotter agreed that the City should wait until it receives the RHNA numbers. He
suggested starting late 2019, receiving the RHNA numbers in 2020, and adopting the General Plan
when appropriate, so current resources can be used for the Port Master Plan.
Mayor Pro Tem O'Neill believed the City does not need to wait until late 2019, agreed that a
comprehensive update is probably needed, and asked what can be done, maybe using a RHNA range.
He added that he is excited with the Circulation Element due to new technology being developed.
Council Member Herdman noted that, during his campaign, the community felt that a General Plan
Update was necessary. He suggested holding a series of meetings in each district, not at dinnertime,
and in different venues and dates, so it allows more people to attend. He believed the City is not in a
position to make a decision until all the meetings are conducted.
Council Member Dixon expressed support for Concept 1 and suggested creating a vision for the City's
future since the City's population has stabilized. However, she indicated she could support Concept 2,
as long as a parallel track is conducted.
Mayor Duffield suggested starting with Concept 1, including an education component, leading into a
final product, then roll into Concept 2.
Council Member Avery agreed that this will take time, but emphasized that it should not be dragged
out. He noted everyone campaigned to maintain the City's quality of life and heritage, and agreed that
more listening needs to happen.
Mayor Duffield recessed the meeting at 7.50 p.m. and reconvened the meeting at 8:03 p.m.
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Planning Session (Special Meeting)
January 29, 2018
VI. PUBLIC SAFETY ISSUES
Using a PowerPoint presentation, Police Chief Lewis provided uniform crime reporting statistics,
explained and elaborated on the definition of robberies, aggravated assaults, and property crimes,
highlighted 2017 crime trends, and discussed what is ahead for 2018.
Mayor Pro Tem O'Neill noted that some crime trends have increased, but pointed out that the City is
doing well compared to its neighboring city.
In response to Council questions, Police Chief Lewis discussed the benefits of the Peninsula bicycle
enforcement team, the Police Department's Narcan Program, the drug problem compared to the rest of
the country, assured everyone that the crime rate has not increased if you look at statistics but will
continue to patrol more where needed, and emphasized the need for residents to verify information with
the Police Department.
Mayor Pro Tem O'Neill encouraged everyone to sign up for Nixle and log onto newportbeachca.gov/GIS.
Gary Sherwin, Newport Beach and Company, discussed the Police Department's role as ambassadors
to the City's visitors.
In response to Dennis Baker's questions, Police Chief Lewis discussed some of the Police Department's
non-traditional approaches, including using school resource officers and the elementary schools' Step
Up Program.
Carol Dru expressed concerns about vehicle break-ins and drug use near her home on Kings Road and
requested more policing in the area.
In response to Lori Petry's questions, Police Chief Lewis indicated he does not have the statistics with
him relative to distracted driving due to using cell phones while driving, but assured everyone there is
an enforcement effort because it is a problem. City Manager Kiff added that it also ruins signal timing.
Regarding the illegal sale of items at the beach, Police Chief Lewis noted it is not legal to do so and that
the business community has also complained about the activity.
Allen Beek requested and received information from Police Chief Lewis about the Police Department's
recruiting process for both civilian and sworn officers.
Deputy Public Works Director Vukojevic reviewed the Corona del Mar and Lido fire station projects,
discussed the remodel projects for the Mariners, Balboa Island, and Newport Center fire stations, and
highlighted the list of Capital Improvement Program (CIP) projects.
In response to Jim Mosher's questions regarding the Mariners fire station remodel, Deputy Public
Works Director Vukojevic reported that the height meets the current standard of all fire stations which
provides room for the front cab on new engines to tilt open, and added the building will also meet current
seismic safety standards.
VII. JOHN WAYNE AIRPORT AND NEXTGEN
In the interest of time, City Manager Kiff indicated that this item could be brought back at a future
study session.
Lori Petry expressed concern that there will be four new County Board of Supervisors elected this year
and emphasized that any changes made to John Wayne Airport (JWA) will greatly affect Newport Beach
residents.
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City of Newport Beach
Planning Session (Special Meeting)
January 29, 2018
City Manager Kiff discussed the City's 50 year agreement with the County that prohibits any JWA
runway expansion without City Council approval, but agreed that the City will stay alert to any
potential changes.
Jim Mosher pointed out that the agreement was removed from the website, and believed that it only
covered the runway to the south, not the north.
VIII. ADJOURNMENT - 8:57 p.m.
The special meeting agenda was posted on the City's website and on the City Hall electronic
bulletin board located in the entrance of the City Council Chambers at 100 Civic Center
Drive on January 25, 2018, at 1:30 p.m.
Duffy 14001,
Mayor
4&4" �_-
Leilani I. Brown
City Clerk
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