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HomeMy WebLinkAbout01 - MinutesJune 26, 2018 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Minutes Study Session and Regular Meeting June 12, 2018 I. ROLL CALL - 4:00 p.m. II. Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem Will O'Neill, Mayor Duffy Duffield SSI. Clarification of Items on the Consent Calendar - None SS2. Earthquake Early Warning Information Out of an abundance of caution, Mayor Duffield recused himself on Item SS2 because he has a family member involved in the industry. Fire Captain Tiscareno utilized a PowerPoint presentation to display the fault zones near the City, discuss the United States Geological 'Survey System (USGSS), explain the Integrated Public Alert Warning System (IPAWS), and report on Early Warning Labs, costs, and early detection locations. He explained how the warning system was used in the Bay Area Rapid Transit (BART) system and during the Mexico earthquake, and discussed the visit to Los Angeles County Fire Station No. 51 with Fire Chief Duncan and Assistant Fire Chief Boyles to review their early warning system. In response to Council questions, Fire Chief Duncan and Fire Captain Tiscareno discussed how the early warning system connects with fire apparatus doors and lights, reported on the difference in alarm sound for the system compared to standard calls, confirmed that there would not be much notification if the City were close to the epicenter; however, if the earthquake, occurredfurther away, the fire department would be able to pull out the apparatus safely and in a timely manner. He reported that the early warning system is a federal system that does not require special licensing, can be accessed at shakealert.com, and would be available at the end of the year. In response to Jim Mosher's comments, Fire Chief Duncan and Fire Captain Tiscareno discussed the proper way to open fire station apparatus doors during an emergency and the difference in apparatus doors at the newer and older fire stations. SS3. Utility Undergrounding - Approaches for Each Pending District Council Member Muldoon recused himself on Item SS3 due to business interest conflicts. Public Works Director Webb, Deputy Public Works Director Vukojevic, and Assistant City Engineer Sinacori utilized a PowerPoint presentation to display an example of how undergrounding can change an area, discuss Rule 20A funds collected from all Southern California Edison's (SCE) ratepayers and Rule 20A projects in the City, explain 20B projects and displayed where they have occurred in the City, review the status of Assessment District 117, highlight Assessment Districts 111, 116 and 116b and discuss issues with the projects due to SCE's process, transparency, and overruns, report on assistance the City has requested of the California Public Utilities Commission (CPUC), and highlight next steps and options. Volume 63 - Page 523 City of Newport Beach Study Session and Regular Meeting June 12, 2018 In response to Council questions, Public Works Director Webb, Deputy Public Works Director Vukojevic, and Assistant City Engineer Sinacori indicated that Assessment District 117 will be brought back at the June 26, 2018 City Council meeting, noted Laguna Beach has built Rule 20B projects on their own, discussed SCE's overhead costs compared to the City's, reviewed Rule 20A proj ect options for the Peninsula, and believed that the City might be able to do the Rule 20A and Rule 20B projects since some money for Rule 20B projects has been collected. Tony Mathis, Principal Manager of Distribution Project Management for SCE, discussed the increase in civil pricing from contractors, explained SCE's bidding process, expressed the desire to find out why the City is receiving lower prices from other bidders, highlighted limitations in their tariff, explained that their overhead cost cannot be passed onto specific projects and is the same rate as all their capital work, indicated that the Rule 20A prof ect on the Peninsula is enough to allow the City to do some parts of the project and the entire Rule 20B project, but noted SCE has not had a city do that, so it would need to be done on an exception basis, and discussed the timeline. Assistant City Engineer Sinacori noted that all redesigned and thanked SCE for their assistance. emphasized there are no restrictions on Rule customers from building the projects, which would In response to Council and staff questions, cost and bid information, but the CPUC is possible City credits to assist with of the projects, and the need to ree for the delays and indicated SCE may not be prioritized over other SCE [a projects will need to be c Works Director Vukojevic that prohibits agencies or tv from SCE overhead costs. ported it is SCE policy to not share 7 at this time. He further discussed and design costs, the complications ing competitive bids. He apologized projects as aesthetic projects that Mayor Pro Tem O'Neill and Council Member Herdman took issue with Mr. Mathis' statement that undergrounding projects are aesthetic projects, and further highlighted safety issues and suggested residents contact their State Senators for assistance. Deputy Public Work's Director'' Vukojevic reported on how Anaheim conducted miles of undergrounding, documented a reliability increase on every undergrounding project, and noted all their bid and cost information was made available for review, which probably reduced costs since it was more competitive. Bill Willis, SCE retiree, expressed his frustration with the process, took issue with SCE's overhead cost, and believed SCE should allow the City to manage and design the projects in order to save the City and residents money. Brian Ouzounian took issue with the SCE's overhead cost, commended the City for wanting to bid this out directly, believed ratepayers have the right to know actual costs, and agreed with how the City wants to move forward. Mayor Duffield believed technology currently exists so residents can be in charge of their own power systems. Council Member Dixon expressed her appreciation to staff for bringing the information forward and noted that some of the undergrounding projects will be brought back to a meeting in the near future. SS4. Harbor Department Mayor Duffield recused himself on Item SS4 due to business interest conflicts. Volume 63 - Page 524 City of Newport Beach Study Session and Regular Meeting June 12, 2018 City Manager Kiff utilized a PowerPoint presentation to point out that the proposed Harbor Department change is included in the budget checklist, display the department organizational chart, and discuss the department's positions, partnership with the lifeguards, overall proposed budget changes, business plans, and next steps. In response to Council questions, City Manager Kiff noted the future of the Harbor Department is a decision for the City Council, the next city manager and Harbor Director, pointed out the Harbor Department is being created without increasing the overall headcount to the City, but does increase hours, explained the advantage of this method of staffing, and discussed the effects on Code Enforcement, Citywide, of temporarily moving Code Enforcement Supervisor Cosyhon to the Harbor Department for a year. Council Member Avery believed the proposal gives the City a framework to move forward and evolve into the right sized Harbor Department, commended Harbormaster Durgan, expressed support for partnering with the lifeguards and working on improving the City's relationship with the Orange County Sheriff s Department, and encouraged the City to grow more partnerships. Council Member Muldoon expressed concern with increasing hours, even if the employees are Public Employee Pension Reform Act (PEPRA) employees. Alan Pyenson, Vue resident, expressed supportfor the proposal, believed the current structure is confusing to most residents, and expressed hope for increased code enforcement, especially due to noise issues. Brian Ouzounian pointed out the c( Harbor Department, questioned the the difference in fees for moorings used to fund the department. Jim Mosher for the dep ,changing the Harbor Division into the Ing a Harbor Department, took issue with expressed hope that mooring fees are not are calculated, noted the previous staffing proposal concern and caution relative to increasing code In response to Council questions, City Manager Kiff discussed possible changes that could offset the department's ovists, confirmed that the proposal would provide an increased level of service in the Harbor,and reported that the funding was created a year ago in order to bring on Harbor Division employees. Council Member Muldoon pointed out the creation of the department is being done without increasing mooring or dock fees and emphasized there is a difference between full time and part time employees. Council Member Avery noted that Newport Harbor is a long harbor and responding to calls could take a long time, believed the City should have more boats but it is costly, and reported the community can expect more Harbor patrolling due to the partnership with the Sheriffs Department and lifeguards. III. PUBLIC COMMENTS Noting the amount of Council correspondence received regarding Closed Session Item IV.B, Jim Mosher believed that negotiations should not begin until the City Council has made a decision to sell the property during open session. Brian Ouzounian expressed concerns with illegal fireworks on the Peninsula during July 4th and hoped that the City will provide more staffing during the holiday. Volume 63 - Page 525 City of Newport Beach Study Session and Regular Meeting June 12, 2018 City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items as listed in the Closed Session agenda. He also announced that Mayor Duffield will be recusing himself on Item IVB. due to source of income conflicts, and he and City Clerk Brown will be recusing themselves on Item IV.D based on personal financial effect of the negotiations. IV. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director, and Peter Brown; Labor Negotiators. Employee Organizations: Newport Beach Lifeguard Management Association (NBLMA); Newport Beach City Employees Association (NBCEA); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Employee Association (NBPT,EA). B. CONFERENCE WITH REAL PROPERTY (Government Code § 54956.8): 1 matter Property: 3300 Newport Boulevard, Agency Negotiator: Dave Kiff, City Manager, Seimone Jurjis, Community Development Director, and Lauren Whithnger, Real Property Administrator Negotiating Parties: Robert D. Olson, President of Olson Real Estate Group, Inc. the Manager of Lido House, LLC, a California limited liability company Under Negotiation: Instruction to negotiator will concern price and terms of payment. C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code §,54957 (b)(1)): 2 matters Title: Leilani I. Brown, City Clerk Title: Aaron C. Harp, City Attorney D. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6 (a)): 2 matters Agency Designated Representative: Marshall "Duff' Duffield, Mayor Unrepresented Employee: Leilani I. Brown, City Clerk and Aaron C. Harp, City Attorney V. RECESSED - 6:01 p.m. VI. RECONVENED AT 7:07 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem Will O'Neill, Mayor Duffy Duffield Volume 63 - Page 526 City of Newport Beach Study Session and Regular Meeting June 12, 2018 VIII. CLOSED SESSION REPORT Regarding Item IV.B, City Attorney Harp announced that the City Council directed staff to take no action. IN. INVOCATION - Bill Cunningham, First Church of Christ, Scientist, Newport Beach X. PLEDGE OF ALLEGIANCE - Mayor Pro Tem O'Neill XI. NOTICE TO THE PUBLIC Mayor Duffield noted Item 28 will be discussed before Item 23. XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member Dixon: • Announced Speak Up Newport's meeting on June 13, Cove State Park restoration, the Finance Committee Beach Art Exhibit on June 16, 2018, Concert on the summer reading program • Attended the Wooden Boat Festival Council Member Herdman: • Attended the Orange County Transp • Thanked his City Council colleagues Council Member Muldoon: • Attended the Balboa Island rovide an update on the Crystal on June 14, 2018, the Newport June 17, 2018, and the library's 'TA) meeting Balboa Island Parade Mayor Pro Tem O'Neill: • Attended the Newport Harbor High School Memorial Day Ceremony, Newport Beach Chamber of Commerce Athletic Awards Dinner, Balboa Island Parade, Employee Appreciation Lunch hosted by the NewportBeach Chamber of Commerce, Boys and Girls Club Leadership Breakfast, and the Orange County Veterans Advisory Council meeting • Announced the Concerts on the Green season will begin on June 17, 2018 and Irrelevant Week begins June 16, 2018 Mayor Duffield: • Attended the 2.d Annual Newport Harbor Underwater Cleanup, Balboa Island Parade, and Corona del Mar Scenic 5K XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of bringing forth possible changes to residential leases at Beacon Bay (Herdman) The City Council concurred to place the matter on a future agenda, with Council Member Herdman, Council Member Muldoon, Council Member Peotter, and Mayor Duffield supporting the item. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 6, Council Member Dixon expressed support for the recommended action, but requested that the Corona del Mar Business Improvement District and the City work together to transition to the 1994 BID law over the next 12 months. Volume 63 - Page 527 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Regarding Item 5, John DeFrenza, Newport Beach Restaurant Association Business Improvement District Board Member, indicated he is encouraged by the move to transition to the 1994 BID law since it may allow for more involvement by restauranteurs. Regarding the November 6, 2018 General Municipal Election (Item 8), Jim Mosher noted he submitted written comments and discussed suggestions for alternative voting systems the City could implement. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the May 22, 2018 Special Joint Meeting with the Finance Committee and City Council Meeting [100-2018] Waive reading of subject minutes, approve as written, 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. ORDINANCES FOR ADOPTION 3. Prohibition of Piers and Floats in Newport Harbor - Second Reading [100-2018] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) arA 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 Ordinance No. 2018-5, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Chapter 17.35 Relating to the Prohibition of Piers and Floats in Certain Areas of Newport Harbor. Mayor Duffield recused himself on Item 3 due to business interests and source of income conflicts. AO 111W 4. Re -organizations of the Public Works Department, Municipal Operations Department, and Creation of a Utilities Department - Second Reading of Ordinance Nos. 2018-6 and 2018-8 [100-2018] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sect�15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physica change to the environment, directly or indirectly; b) Adopt Ordinance No. 2018-6, An Ordinance of the City Council of the City of Newport Beach, California, Abolishing the Municipal Operations Department, Adding the Former General Services Division to the Public Works Department as the Municipal Operations Division, and Creating the Utilities Department; and c) Adopt Ordinance No. 2018-8, An Ordinance of the City Council of the City of Newport Beach, California, Amending Sections 2.12.010, 2.12.080, and 2.12.100, of Chapter 2.12 of Title 2 of the Newport Beach Municipal Code, Pertaining to the Utilities Department and Public Works Department. RESOLUTIONS FOR ADOPTION 5. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 (Resolution No. 2018-27) and Approve Funding Support for Fiscal Year 2019 (continued from the May 22, 2018 City Council meeting) [100-2018] 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; Volume 63 - Page 528 City of Newport Beach Study Session and Regular Meeting June 12, 2018 b) Approve the Newport Beach Restaurant Association Business Improvement District's Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019 Budget; c) Adopt Resolution No. 2018-27, AResolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2018 to June 30, 2019, and Fix the Time and Place of a Public Hearing for June 26, 2018; and d) Approve $40,000 in City funding support to the Newport Beach Restaurant Association Business Improvement District for Fiscal Year 2018-2019. Mayor Duffield recused himself on Item 5 due to business interests and source of income conflicts. 6. Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 (Resolution No. 2018-28) and Approve Funding Support for Fiscal Year 2019 (continued from the May 22, 2018 City Council meeting) [100-2018] 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) Approve the Corona del Mar Business Improvement District's Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019 Budget; c) Adopt Resolution No. 2018-28, AResolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for thcal Year of July 1, 2018 to June 30, 2019, and Fix the Time and Place of a Public HeaAWW June 26, 2018; and d) Approve $40,000 in City funding support to the Newport Beach Restaurant Association Business Improvement District for Fiscal Year 2018-2019. Adoption of Fiscal Year 2018-19 Appropriations Limit [100-2018] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2018-31, AResolution of the City Council of the City of Newport Beach, California, termining and Establishing an Appropriations Limit (GANN) for Fiscal Year 2018-19 icordance with Article XHIB of the California Constitution and Government Code Section 7910, in the amount of $194,345,791. S. Calling the November 6, 2018 General Municipal Election [391100-2018] 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) Adopt Resolution No. 2018-32, AResolution of the City Council of the City of Newport Beach, California, Calling for the Holding of a General Municipal Election to be Held on Tuesday, November 6, 2018, for the Election of Members of the City Council as Required by the Provisions of the City Charter; c) Adopt Resolution No. 2018-33, AResolution of the City Council of the City of Newport Beach, California, Requesting the Board of Supervisors of the County of Orange to Consolidate a General Municipal Election to be Held on Tuesday, November 6, 2018, with the Statewide Primary Election to be Held on the Same Date Pursuant to California Elections Code Section 10403 for the Purpose of Electing Members of the City Council; and d) Adopt Resolution No. 2018-34, AResolution of the City Council of the City of Newport Beach, California, Adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at an Election to be Held on Tuesday, November 6, 2018. 9. Resolution No. 2018-35: Adopting a Memorandum of Understanding with the Newport Beach Lifeguard Management Association (LMA) and Amending the Salary Range for the Position of Assistant Chief, Lifeguard Operations (C -2058B) [381100-2018] Volume 63 - Page 529 City of Newport Beach Study Session and Regular Meeting June 12, 2018 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution 2018-35, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Lifeguard Management Association and Amending the Salary Range for the Position of Assistant Chief, Lifeguard Operations. 10. Resolution of Intention to Modify the Newport Beach Tourism Business Improvement District's Management District Plan [100-2018] 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) Resolution No. 2018-36, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Modify the Newport Beach Tourism Business Improvement District's Management District Plan and Fixing the Time and Place of a Public Meeting and Public Hearing Thereon and Giving Notes Thereof. Mayor Duffield recused himself on Item 1:& bit interests and source of income conflicts. CONTRACTS AND AGREEMENTS 11. Request for Policy Waiver to Install Private Improvements within the Public Right -of Way at 1011 Kings Road (C-7043-4) [381100-2018] 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 City Council Policy L-6, Private Encroachments in the Public Rights -of -Way, to allow the installation of a planter wall and steps within the Kings Road right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and c) Direct Staff to enter into an Encroachment Agreement with the Owners, and authorize the City Manager and City CIV to execute the Encroachment Agreement within one (1) calendar yearupon recei of approval. 12. Tentative Agreement Newport Beach Police Association (NBPA) (C-2056) [381100- 2018] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to §§15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Receive and consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Police Association. 13. Approval and Award of Agreement with Duke's Root Control, Inc., for Sewer Root Control Services (C-8555-1) [381100-2018] a) Determine this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) Approve the Maintenance/Repair Services Agreement with Duke's Root Control, Inc. for sewer root control services for a three (3) year term with a total amount not -to -exceed $300,000, and authorize the Mayor and City Clerk to execute the agreement. Volume 63 - Page 530 City of Newport Beach Study Session and Regular Meeting June 12, 2018 14. Approval and Award of Agreement with GCI Construction, Inc. (C-8556-1), W.A. Rasic Construction Co. (C-8556-2), and T.E. Roberts, Inc. (C-8556-3) for Underground Utility Repair Services [381100-2018] a) Determine this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) Approve the on-call agreement(s) with GCI Construction, Inc., W.A. basic, and T.E. Roberts, Inc. for underground utility repair services for a three-year term with a total amount not -to - exceed $1,500,000; or $500,000 per each of the three (3) agreements, and authorize the Mayor and City Clerk to execute the agreement(s). Council Member Muldoon recused himself on Item 14 due to business interest conflicts. 15. Removed from the Consent Calendar MISCELLANEOUS it 16. Support for AB 448 - OC Housing Trust [100-2018] Continue indefinitely. i MF 17. Opposition to Mobile Needle Exchange Program in Costa Mesa [100-2018] a) Determine this action is exempt fzbm 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) Authorize Police Chief Jon�to send a statement of concern relating to the distribution location of the proposed County Mobile Needle Exchange Program due to its proximity to local schools. 18. Annual Measure M Fund Eligibility Requirements [100-2018] 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) Adopt the Proposed City Measure M 7 -Year CIP; and c) Direct staff to submit all necessary eligibility materials to OCTA to satisfy the Measure M annual eligibility requirements. Council Members Herdman and Muldoon recused themselves on Item 18 due to real property interests. 19. Confirmation of Voting Delegate and Alternate for the 2018 League of California Cities Annual Conference - September 12, 2018 to September 14, 2018 [100-2018] 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) Designate Mayor Pro Tem Will O'Neill to be the Voting Delegate and Council Member Kevin Muldoon to be the Voting Delegate Alternate at the LCC Conference; and c) Direct the City Clerk to complete and submit the LCC designation form by Friday, August 31, 2018. 20. Appointment of Deborah O'Connor to the Newport Coast Advisory Committee [241100- 2018] 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 Volume 63 - Page 531 City of Newport Beach Study Session and Regular Meeting June 12, 2018 b) Appoint Deborah O'Connor to fill the current vacant position on the Newport Coast Advisory Committee. 21. Board and Commission Scheduled Vacancies - Confirmation of Nominees [241100-2018] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Direct the City Clerk to re -advertise for the Building and Fire Board of Appeals seats; and c) Confirm the nominations made by the City Council Ad Hoc Appointments Committee: Board of Library Trustees [1 vacancy] Kurt Kost Ash Kumra Lisa Winter Building and Fire Board of Appeals [3 vacancies] (no applications were received) Citv Arts Commission [1 vacancy] Lili Bender Judy Chang (incumbent) Wayan Kaufman Civil Service Board [1 vacancy] Sharon Wood (incumbent) Harbor Commission [3 vacancies] Ira Beer (incumbent) Clark Cashion Somer Harding William Kenney (incumbent) Don Yahn Parks Beaches & Recrea Co on [2 vacancies] Hassan Archer Diane Daruty Lynn Gosselin 1 Meredith Sandland Planning Commission [1 vacancy] Curtis Ellmore Peter Koetting (incumbent) Motion by Mavor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the Consent Calendar, except for Item 15; and noting the continuance of Item 16, recusal by Mayor Duffield on Items 31 5 and 10, the recusal by Council Member Muldoon on Items 14 and 18, and the recusal by Council Member Herdman on Item 18. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield XVI. ITEM REMOVED FROM THE CONSENT CALENDAR 15. Special Event Support Program FY 19 Funding Recommendations (C-8082) [381100- 2018] Mayor Duffield recused himself on Item 15 due to business interests and source of income conflicts. Council Member Muldoon believed the Newport Beach Wine and Food Festival should be removed from the list of special event support recipients since it is more of an exclusive event. Volume 63 - Page 532 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Motion by Council Member Muldoon, 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; b) approve the Special Event Support recommendations for Fiscal Year 2018-2019; and c) authorize staff to execute one- year grant agreements with Signature event organizers for the Komen Orange County Race for the Cure (C-8082-213), Hoag Classic (C-8082-7), Newport Beach Restaurant Week (C -8082-3A), and the Newport to Ensenada Yacht Race (C -8082-5A). Council Member Dixon noted that the Newport Beach Wine and Food Festival's funding would cover permit -related costs and suggested allowing it this year since the event is already scheduled for October, but removing them next year, especially since the City did not provide funding last year. The motion carried by the following roll call vote: Ayes: Council Member Muldoon, Council Member Dixon, Council Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill Noes: Council Member Herdman Recused: Mayor Duffield XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Denys Oberman believed property values are being degraded due to variances and inadequate controls in connection with residential development, and highlighted issues that have occurred. She indicated she will submit recommendations to the City Council at a later time. Jim Mosher thanked the City Attorney for reporting out after Closed Session. He referenced his written non -agenda comments and believed that the City Council is required to screen all qualified city manager candidates and not just have the consultant provide a short list. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XIX. PUBLIC HEARING 22. Community Development Block Grant - 2018-2019 Action Plan (C-8482) [38/100-2018] Clint Whited, LDM Associates, utilized a PowerPoint presentation to discuss the Action Plan funds, process, and proposed 2018-2019 activities that will be receiving grants. In response to Council Member Dixon's questions, Community Development Director Jurjis and Mr. Whited explained how Capital Improvement Program (CIP) funds accumulate until a project is determined and reported the 5 -year Consolidated Action Plan was approved in 2015, which includes Americans with Disabilities Act (ADA) improvements, public and human services, and housing activities. Mayor Duffield opened the public hearing. Jim Mosher asked why some organizations received funding while others did not, believed better coordination for CIP projects needs to take place with Public Works, and noted there soon should be more money since the loan repayment will be ending. Hearing no further testimony, Mayor Duffield closed the public hearing. Volume 63 - Page 533 City of Newport Beach Study Session and Regular Meeting June 12, 2018 A'A'A Motion by Mavor Pro Tem O'Neill, seconded by Council Member Dixon, to a) find the approval of 2018-2019 Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34; b) find the approval of 2018-2019 Action Plan 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 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; c) adopt Resolution No. 2018-37, AResolution of the City Council of the City of NewportBeach, California, Approving the 2018-2019 Action Plan for the Allocation of the Federal Community Development Block Grant for the 2018-2019 Fiscal Year; and d) authorize the City Manager to: 1) Adjust appropriations to specific programs and projects as necessary to conform with the final 2018-2019 formula grant allocation of CDBG funds from HUD; 2) Execute all necessary agreements and documents as per the adopted resolution; and 3) Implement the program on behalf of the City. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Member Peotter, Council Member Avery, Mal 28. Potential Ballot Initiative Certain Certificates of Pai City Manager Kiff noted that he Council meeting. He announced i before Item 23. item to the June Member Dixon, Council Mayor Duffield Prior to the Issuance of Revenue Obligations [100-2018] be continued to the June 26, 2018 City tter has requested Item 25 be discussed to continue the Susan Stunner discussed why she believes the item should not be brought to a vote of the people, noting no other jurisdiction has this type of restriction, explained what Certificates of Participation (COP) are used for, and suggested evaluating the ramifications if the ballot initiative passes Denys Oberman believed there is a need for using COPs and suggested setting a threshold to the amount that can be issued through a COP or policy provisions, rather than restricting them entirely unless there is a vote. Council Member Muldoon noted this was discussed about two years ago, believed that using COPs is a way around Proposition 13, and assumed residents would want to vote on how their money will be spent, especially when it involves borrowing money. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Dixon, Council Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield Noes: Council Member Muldoon 25. Consideration of Changing the Structure of the Finance Committee [241100-2018] City Manager Kiff provided the staff report, highlighting the options and proposed change. Volume 63 - Page 534 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Council Member Peotter believed the structure of the Finance Committee should be similar to other boards and commissions, Council voices receive more weight than the citizen members', removing Council from the committee does not change the interaction with the committee, and each Council Member would have an equal voice on the committee if the structure were changed. He expressed frustration about issues he felt were not being handled by the Finance Committee, like evaluating the use of a Section 115 trust. Motion by Council Member Peotter to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2018-39, AResolution of the City Council of the City of Newport Beach, California, Amending the Membership of the City of Newport Beach's Finance Committee, to an all -appointive citizens' body. The motion died for lack of a second. Council Member Muldoon indicated he sits on the Finance Committee, the meetings are run by staff, it is a professional structure and process, and stated Finance Committee Member Tucker noted that some decisions need to be made by those who are accountable to the people directly. He believed the current structure is a good compromise. Council Member Dixon indicated she chairs the Finance Committee, commended Council Member Peotter for initiating the current structure which includes citizens, believed the citizen - members contribute a great deal to the meetings, emphasized Council has the duty to protect the City's finances, expressed support for the current structure, and reported on the committee's current work plan. Mayor Pro Tem O'Neill indicated he is a member of the Finance Committee and it is incumbent upon the Council -committee members to not drown out the citizen member voices, or replace them. He noted the meetings are noticed and open to the public. Council Member Avery believed aro all citizen committee would do a good job, but agreed that Council Members' greatest duty is to protect the financial health of the City, which the current structure achieves. Mayor Duffield expressed understanding for Council Member Peotter's point of view; however, indicated that his Finance Committee appointee, Bill Collopy, believes the makeup should not be changed. He added that Mr. Collopy provides him with regular updates. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) make no changes to the Finance Committee's structure. Carl Cassidy believed the committee should be changed since it could be intimidating to have Council Members serving on the committee. He noted that the citizen members have also been vetted. Nancy Skinner encouraged Council not to change the Finance Committee structure and emphasized the public is welcome to participate during board, commission and committee meetings. Susan Skinner believed the City should have one or more Council Members on the Finance Committee to increase their knowledge of the City's finances. Volume 63 - Page 535 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Jim Mosher took issue with moving items before Public Hearing items. He expressed support for changing the Finance Committee structure, believing it would put more scrutiny on the City's finances. He asked how the Finance Committee citizen members feel about this, believed this should have gone to the Finance Committee for discussion, and noted Council Members rarely report out about Finance Committee actions. Mayor Pro Tem O'Neill noted the appeal process for some commissions, which is not the same for Finance Committee. He also discussed the advantage to having Council Members on Finance Committee due to Closed Session issues. He indicated, if the structure is changed, he suggested still appointing at least one Council Member to the committee. Council Member Muldoon indicated Council Member Peotter can take his seat on the Finance Committee if he feels he is not being represented enough. Council Member Herdman discussed his growing expertise on City matters as a result of being on committees, emphasized that the City Council cannot be experts in every aspect of the City, and expressed support for the the current structure. The motion carried by the following roll call vote Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield Noes: Council Member Peotter NIX PUBLIC HEARING 23. Resolution No. 2018-38: Recommendations from 20181 Council Member system, streetligh conflicts. _ ;et Adoption; City Budget Hearing; and Budget Checklist Items [100- Rdhimself from discussion related to the 800 MHz and assessment district costs due to business interest Council Member Herdman recused himself from discussion related to the quarterly steam cleaning of sidewalks on Balboa Island and Park Avenue bridge replacement due to real property interest conflicts. Council Member Avery and City Clerk Brown recused themselves on discussions related to the Balboa Peninsula Crosswalk Project due to real property interest conflicts. City Manager Kiff utilized a PowerPoint presentation to explain the budget checklist, highlight the addition of a school resource safety officer which will be co -funded by the Newport -Mesa Unified School District (NMUSD), creation of a new Harbor Department, addresses issues with the jail, adds a civilian fire marshal, and shows the City's aggressive efforts to pay down unfunded pension liability. He emphasized the budget is balanced and shows a net zero change in full-time positions. He reviewed important dates and the recommended actions. Mayor Pro Tem O'Neill emphasized that, even if the budget checklist were adopted as is, City operations would still be net positive. He also discussed and commended the City's effort to decrease its pension liability in the next year and into the future, without needing to increase a single tax in the City. He pointed out the large number of CIP projects listed in the budget and discussed the Junior Lifeguard Headquarters and Library Lecture Hall projects. Volume 63 - Page 536 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Council Member Dixon noted the Finance Committee reviewed the budget several times, discussed the interactive budget portal, reported that revenues have outgrown expenditures over the last four years, except for pensions, and noted the City is heading in the right direction without compromising safety and programs to enhance quality of life. In response to Council Member Peotter's questions, Finance Director Matusiewicz reported the City is projecting to fund an additional $8.8 million toward unfunded pension liability, discussed the Fresh Start Program, and explained what a Section 115 trust is and noted the Finance Committee has not studied it completely to make a recommendation to Council. Council Member Peotter suggested setting aside the additional $8.8 million in a separate reserve fund for pension payments until the use of a Section 115 trust is studied fully. Regarding the permanent airport noise monitors, City Manager Kiff reported that it will probably be covered in the existing budget and be placed on the Peninsula and Balboa Island. Discussion ensued relative to a debt study conducted by into account the City's ability to pay its debt, and is a ful Mayor Duffield opened the public hearing. Joy Brenner, Corona del Mar Residents Association including the school resource safety officer and fire mars] Ruth Kobayashi thanked Council for potentially fundinE indicated she will be attending the NMUSD meeting to e Moorlach, which did not take legacy city. sident," expressed appreciation for on the budget checklist. school resource safety officer and they fund their share. Carl Cassidy commended the Finance Committee on their work on the budget, noting they also discuss CalPERS issues. He suggested everyone attend Finance Committee meetings to listen to the investment advice the Citv receives Jim Mosher indicated the May 22, 2018minutes do not reflect any changes to the budget checklist, compared the checklist from May 22, 2018 to tonight's checklist and noted changes, expressed difficulty with finding specific budget items, like CIP or John Wayne Airport (JWA) items, unless they are placed on the checklist, and expressed concern with the institutional knowledge that will be lost with City Manager Kiff s departure. Hearing no further testimony, Mayor Duffield closed the public hearing. City Manager Kiff discussed the interactive budget portal, but indicated items could be better spelled out, thanked Finance Director Matusiewicz, Deputy Finance Director Montano, Budget Manager Giangrande, Budget and Payroll Supervisor Espinoza, staff, and Council for their work on this year's budget, and assured the public that the Finance Department has the same institutional knowledge he possesses. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) review and consider the Finance Committee's budget recommendations; c) review and consider the City Manager's recommended list of City position classifications and their salary ranges; d) conduct a straw vote on the budget checklist of budget revisions, including those items added, changed or removed during the public hearing. Based on the straw vote, Budget Checklist items approved will be included in the City's Fiscal Year 2018-2019 Approved Budget; and e) adopt Resolution No. 2018-38, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2018-19 Fiscal Year, as amended by the City Council and the approved budget checklist. Volume 63 - Page 537 City of Newport Beach Study Session and Regular Meeting June 12, 2018 XY, Motion to amend the motion by Council Member Peotter to include that the additional money for the extra payments to pay Ca1PERS be held in a separate reserve fund. The motion to amend the motion died for lack of second. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield Noes: Council Member Peotter 24. Professional Services Agreement for Parking Management and Parking Enforcement Services (C-8557-1) [38/100-2018] In response to Council Member Muldoon's question, City Buyer Nguyen and Revenue Manager Tseng utilized a PowerPoint presentation to explain the procurement process, compare proposals between SP+ and AmeriPark, and highlight AmeriPark's reduced five-year cost, customer service plan, employee retention, training program, 24-hour call center, knowledge of the City's infrastructure, and expertise nationwide. this action is exempt from the Califox Sections 15060(c)(2) and 15060(c)(3) of f in a physical change to the environment, Mayor and City Clerk to execute the PE year agreement. The motion carried by the Ayes: Council Member mcil Member Dixon, to a) determine tal Quality Act (CEQA) pursuant to ales because this action will not result +ctly; and b) approve and authorize the not to exceed $7,303,420 for a five (5) E Member Muldoon, Council Member Dixon, Council Avery, Mayor Pro Tem O'Neill, Mayor Duffield 26. Approval and Award of Agreement with Sancon Technologies, Inc. for As -Needed Pipe Lining Services (0-8558 1) [38/100-2018] Motion by Council Member Peotter, seconded by Council Member Herdman, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) approve the on- call maintenance and repair services agreement (Agreement) with Sancon Technologies, Inc., for as -needed pipe lining services for a term of three years with a total amount not to exceed of $750,000, and authorize the Mayor and City Clerk to execute the Agreement. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield 27. Consideration of Sending a Letter in Support of HR 5724 Relating to Group Residential Uses [100-2018] City Manager Kiff reported that the Mayor can send letters of support without Council approval if the legislation is consistent with the City's legislative platform. He indicated this is on the agenda because there is a component of HR 5724 that is inconsistent with the City's legislative platform. Volume 63 - Page 538 City of Newport Beach Study Session and Regular Meeting June 12, 2018 Mayor Pro Tem O'Neill and Council Member Dixon commended the thoroughness of the staff report and believed the City should take no position on health insurance laws. Ruth Kobayashi agreed with putting aside the health insurance aspect of the bill, but support the remainder of the bill and relayed issues surrounding group residential uses. Denys Oberman expressed the opinion that being able to regulate group residential uses is important for the City. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) authorize the Mayor to send a letter in support of specific aspects of HR 5724 relating to the placement of recovery facilities. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Mer Member Peotter, Council Member Avery, XXI. MOTION FOR RECONSIDERATION - None NMI. ADJOURNMENT - 9:30 p.m. The agenda and amended agenda were electronic bulletin board located in 100 Civic Center Drive on June 7, 2418, Leilani I. Brown City Clerk zldoon,Council Member Dixon, Council Pro Tem O'Neill, Mayor Duffield on the City's website and on the City Hall ,rance of the City Council Chambers at p.m. and June 8, 2018, at 2:45 p.m. Marshall "Duffy" Duffield Mayor Volume 63 - Page 539