Loading...
HomeMy WebLinkAbout06/26/2018 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting June 26, 2018 I. ROLL CALL - 4:32 p.m. 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 II. CURRENT BUSINESS SS1. Discussion Relating to Amending the City Charter Regarding Majority Voter Approval of Certain Debt City Manager Kiff noted the election item on the regular meeting agenda, reviewed the purpose of the proposed Charter amendment, and indicated Council can decide on a dollar threshold, if the amount should be adjusted annually, and if there should be exemptions. Larry Tucker, Finance Committee member but speaking as an individual, expressed concern the proposal was not brought before the Finance Committee. He asked how a campaign would be handled, if reserves would be used in the future to avoid going to a vote, and how it would bind future City Councils. Keith Curry took issue that no other city in the country has this restriction, discussed the timing of the city hall and park project bids if an election was required, explained why he believed this would be bad policy and cost taxpayers money, and expressed concern with which projects this proposal would effect, how this would bind future City Councils, the unintended consequences, and the need for special elections. Nancy Skinner expressed concern that the proposal would raise taxes, suggested paying for projects by removing items from the budget, believed the City should handle financing as it currently does, and requested the threshold be set high if moving forward. Jim Mosher believed the proposal has not been reviewed thoroughly, suggested postponing placing this on the November ballot, questioned the deadlines outlined in the staff reports, suggested creating a legislative committee, and raised questions and concerns with the Charter amendment. Bob McCaffrey discussed Proposition 13, believed taxpayers should decide on large City spending, and suggested a 2/3 voter approval threshold. Council Member Muldoon noted this was discussed two years ago, staff did not take it to the Finance Committee, Council should decide these types of issues, costs can be estimated to see if there is voter support for the project, discussed when Certificates of Participation (COP) would be used, discussed the purpose of the proposal, agreed it should not bind future Councils on unreasonable projects, suggested placing a 55% voter approval with a $25 million threshold, and agreed that an emergency exemption should be included. Council Member Peotter indicated he has been a supporter of this since 2014 due to the cost of the city hall and park project, believed the past Council obligated future voters to pay the debt on this project, took issue with growing government, expressed support for the suggested thresholds, and suggested amending the ballot description language. Volume 63 - Page 540 City of Newport Beach Study Session and Regular Meeting June 26, 2018 In response to Council questions, City Clerk Brown discussed election deadlines. City Manager Kiff confirmed most of the current Council Members will not be seated when 18 of the 19 large projects will be considered, reported on city hall and park project payment amounts and subsidies, and that it represents about 4.7% of the general fund expenditure budget. Bond Counsel Brian Forbath, Stradling, Yocca Carlson & Rauth, confirmed COPS could be used for the sea wall project and discussed the possible need for an asset transfer for that project. Council Member Dixon suggested exempting police and fire facilities, and having a $30 million or $40 million threshold with a 2/3 vote. Mayor Pro Tem O'Neill indicated he could support a $50 million threshold due to funding concerns, noting Facilities Financing Plan (FFP) funding is associated with development. He noted City Councils set aside money every year for Harbor capital improvements; however, expressed concerns with drawing down the FFP to a point that the City would need to use general fund money or reserves. Mayor Duffield discussed the concerns he heard from voters about the daily cost to pay for the city hall and park project and indicated the project might have been smaller if it went to a vote. Council Member Avery emphasized Council's fiduciary duty, believed the City spent more than necessary for the city hall and park project, asked what a campaign would look like, and expressed his reticent support for a 55% voter approval and $50 million threshold, with annual adjustments. Council Member Peotter discussed using a percentage of the general fund budget rather than a dollar threshold. City Manager Kiff and City Attorney Harp indicated they would need more time to review the suggestion. The following straw votes were conducted in order to draft language and bring it back for consideration during the regular meeting (Item 23): • $50 million threshold — Council Member Dixon, Council Member Avery, Mayor Pro Tem O'Neill and Mayor Duffield • 2/3 of the electors voting on the proposition — Council Member Muldoon, Council Member Peotter and Mayor Duffield • 55% of the electors voting on the proposition — Council Member Muldoon, Council Member Dixon, Council Member Avery and Mayor Pro Tem O'Neill • Exemption for police and fire facilities — Council Member Dixon and Council Member Avery City Attorney Harp indicated he and City Manager Kiff would also draft an amended ballot description and bring it back for consideration during the regular meeting. III. PUBLIC COMMENTS Jim Mosher suggested prohibiting omnibus Charter amendments and instituting some type of run- off election. He referenced his written comments about the noticing of Closed Session items and commended the description for Item IV.D, but believed the City Attorney's legal analysis of what could be discussed should be made public. Larry Tucker discussed including an exemption to the proposed Charter amendment regarding emergencies that could ultimately cause damage to someone else's property. Nancy Skinner asked what the proposed Charter amendment's $50 million threshold would cost per household and the definition of disaster and emergency. Volume 63 - Page 541 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Keith Curry calculated the per household amount on the $50 million threshold and believed it would represent about 2.5% of the City's budget. Lesley Miller discussed the agreement between the City and residents relative to the alley between Ocean Front and East Ocean Boulevard, and requested that, before the City deems the project complete, it require the developer or contractor to restore the alley and replace the pavers. City Attorney Harp announced that the City Council will not be meeting relative to Item IV.D, however, reported the City Council would adjourn to Closed Session to discuss the remaining items as listed in the Closed Session agenda and read the titles. 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); Newport Beach Professional and Technical Employees Association (NBPTEA); and Newport Beach Employees League (LABEL). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION — INITIATION OF LITIGATION (Government Code § 54956.9(d)(4): 1 matter C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) and § 54956.9(e)(1)): 1 matter D. PUBLIC EMPLOYEE APPOINTMENT (Government Code § 54957 (b)(1)): 1 matter Title: City Manager. The City Council will consider all matters authorized by Government Code Section 54957 (b)(1) related to the appointment of a new City Manager; however, the City Council will not be appointing a new City Manager at this meeting. V. RECESSED - 5:44 p.m. VI. RECONVENED AT 7:00 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 VIII. CLOSED SESSION REPORT - None IX. INVOCATION - Council Member Peotter X. PLEDGE OF ALLEGIANCE - Mayor Pro Tem O'Neill Volume 63 - Page 542 City of Newport Beach Study Session and Regular Meeting June 26, 2018 XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member Peotter: • Announced increased enforcement to keep dogs out of the Santa Ana River Jetty area by the City and County due to the least tern habitat Council Member Dixon: • Attended the opening day of the Newport Beach Junior Lifeguard program and thanked all staff involved • Announced the upcoming Finance Committee meeting on June 28, 2018, and the 4th of July is for Families Bike Parade and Community Festival in Channel Place Park Council Member Herdman: • Attended the 54th Annual Newport Beach Art Exhibition, the June 18, 2018 Aviation Committee meeting, and a Vietnam Veterans Hero Day with Council Member Muldoon • Announced upcoming Concerts on the Green performers • Recognized Finance Director Matusiewicz and his staff for receiving a Certificate of Achievement for excellence in financial reporting from the Government Finance Officers Association Council Member Muldoon: • Attended the Vietnam Veterans Hero Day and commended Council Member Herdman for his participation at the event Mayor Pro Tem O'Neill: • Attended the Orange County Veterans Advisory Council meeting, the Living History luncheon at Corona del Mar High School, Irrelevant Week 2018 Banquet honoring Trey Quinn, the Newport Beach Police Department swearing in ceremony, and the Chapman Economic Forecast update • Announced upcoming 4th of July events throughout the City and encouraged everyone to have fun, but be safe and sane XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher questioned the amount of the new pay structure for K-9 Officers in Item 5, took issue with the Water Quality/Coastal Tidelands Committee not properly being informed of Items 11 and 12, and commented on the process taken by the Community Development Director regarding the Coastal Development Permit waiver for the De Minimis Development (Item 15). In response to Mr. Mosher's comment, Council Member Herdman indicated that the Water Quality/Coastal Tidelands Committee was well aware of both Items 11 and 12 and had been working on reaching the two agreements with the County of Orange for over a year. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the June 12, 2018 City Council Meeting [100-20181 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 INTRODUCTION Volume 63 - Page 543 City of Newport Beach Study Session and Regular Meeting June 26, 2018 3. Creation of a Harbor Department [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) Introduce Ordinance No. 2018-10, An Ordinance of the City Council of the City of Newport Beach, California, Creating a Harbor Department and Folding the Harbor Resources Division into the Engineering Services Division of the Public Works Department, and pass to second reading on July 10, 2018; c) Introduce Ordinance No. 2018-11, An Ordinance of the City Council of the City of Newport Beach, California, Amending the Title and Introductory Table of Chapter 2.12, Section 2.12.010 and Adding Section 2.12.120 to Title 2 of the Newport Beach Municipal Code, Pertaining to the Harbor Department, and pass to second reading on July 10, 2018; and d) Adopt Resolution No. 2018-40, AResolution of the City Council of the City of Newport Beach, California, Creating Positions and Amending and Establishing Position Classifications and Salary Ranges for the Harbor Department. Mayor Duffield recused himself on Item 3 due to business interest and source of income conflicts. RESOLUTIONS FOR ADOPTION 4. Proposed Creation of a Civilian Fire Marshal Position [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) Adopt Resolution No. 2018-41, AResolution of the City Council of the City of Newport Beach, California, Creating a Civilian Fire Marshal Position and Establishing the Position Classification and Salary Range. 5. Resolution No. 2018-42: Adopting a Memorandum of Understanding with the Newport Beach Police Association (NBPA) and Associated Salary Schedule (C-2056) [38100- 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) Adopt Resolution No. 2018-42, 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 Police Association and Associated Salary Schedule. 6. Update of Council Policy F-14 (Authority to Contract) [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) Adopt Resolution No. 2018-43, AResolution of the City Council of the City of Newport Beach, California, Amending City Council Policy F-14, Authority to Contract. Formation of Community Facilities District for Uptown Newport [100-2018] a) Determine this 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) Adopt Resolution No. 2018-44, AResolution of the City Council of the City of Newport Beach, California: (1) Authorizing the California Statewide Communities Development Authority (`Authority') to Form a Community Facilities District within the Territorial Limits of the City of Newport Beach to Finance Certain Public Improvements; (2) Embodying a Joint Community Facilities Agreement Setting Forth the Terms and Conditions of the Community Facilities District Financing; (3) Approving an Acquisition Agreement among the Authority, the City and the Developer; and (4) Authorizing Staff to Cooperate with the Authority and its Consultants in Connection Therewith. Volume 63 - Page 544 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Mayor Pro Tem O'Neill recused himself on Item 7 due to property interest conflicts and Council Member Muldoon recused himself on Item 7 due to business interest conflicts. CONTRACTS AND AGREEMENTS 8. Corporation Yards Painting Project - Notice of Completion for Contract No. 7153-1 (18F02) [381100-2018] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On October 24, 2017, City Council found this project exempt from the California Environmental Quality Act (CEQA); b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release Faithful Performance Bond one (1) year after acceptance by the City Council. 9. Citywide ADA Curb Access Ramp Improvements - Notice of Completion for Contract No. 7154-1 (181111) [381100-2018] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On November 14, 2017, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302(c); 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 Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 10. Irvine Avenue Pavement Rehabilitation - Award of Contract No. C8515-2 (171121) [381100-2018] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1, (b), (c) (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, because this has no potential to have a significant effect on the environment; b) Approve the Cooperative Agreement between City of Newport Beach and City of Costa Mesa for Irvine Avenue Pavement Rehabilitation (C-8515-3); c) Approve the project drawings and specifications; d) Award Contract No. 8515-2 to R.J. Noble Company, Inc. for the total bid price of $2,459,825.00, and authorize Mayor and City Clerk to execute the contract; e) Establish and encumber a $246,000.00 (approximately 10 percent) contingency amount to cover the cost of unforeseen work not included in the original contract; and f) Approve Budget Amendment No. 18BA-039 appropriating $34,000 from the Water Enterprise fund to Account No. 70101-980000-18R09; recognizing $1,187,016.00 from the City of Costa Mesa and appropriating $1,187,016.00 to Account No. 13501-980000-171121 for Irvine Avenue Pavement Rehabilitation project with unencumbered funds carried over to FY 2018-19 Capital Improvement Program Budget. 11. Water Quality Educational Outreach Program - Approval of Professional Services Agreement with Orange County Department of Education (C-8270-2) [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; and b) Award and approve, via single source selection, a five (5) year Professional Services Agreement (PSA) with Orange County Department of Education, a public agency by and through the Orange County Superintendent of Schools, to provide educational outreach services, for a not -to -exceed amount of $225,000.00, and authorize the Mayor and City Clerk to execute the agreement. 12. Cooperative Agreement to Implement Total Maximum Daily Load Programs for Nutrients, Fecal Coliform Bacteria and Toxics in the Newport Bay Watershed (C-8559- 1) [381100-2018] Volume 63 - Page 545 City of Newport Beach Study Session and Regular Meeting June 26, 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) Authorize the Mayor and the City Clerk to execute Cooperative Agreement MA -080- 18011416 with the County of Orange and other upstream partners to implement these water quality improvements, studies, monitoring, shared funding, and maintain compliance with the TMDL mandates. 13. Agreements for As -Needed Building Maintenance and Repair Services (C-8560) [38/100-20181 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 on-call agreements for as -needed maintenance and repair services for a three-year term with RAMCO General Engineering Contractors (C-8560-1) for a not -to -exceed amount of $300,000, John M. Rabun (C-8560-2) for a not -to -exceed amount of $365,000 and TL Veterans Construction (C-8560-3) for a not -to -exceed amount of $300,000, and authorize the Mayor and City Clerk to sign the agreements. MISCELLANEOUS 14. Planning Commission Agenda for the June 21, 2018 Meeting [100-2018] Receive and file. 15. Coastal Development Permit Waiver for De Minimis Development Located at 191 Riverside Avenue (PA2018-083) [100-20181 a) Determine this action is not a project as defined and 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 is to receive and file only and will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. 16. Removed from the Consent Calendar 17. Removed from the Consent Calendar Motion by Mayor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the Consent Calendar, except for the items removed (Items 16 and 17); and noting the recusal by Mayor Duffield on Item 3, recusal by Mayor Pro Tem O'Neill on Item 7, and recusal by Council Member Muldoon on Item 7. 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 XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 16. Support for AB 448 - OC Housing Trust [100-20181 Council Member Dixon acknowledged what an important milestone AB 448 is, not only for Newport Beach but also for all 34 cities in Orange County, explained how these funds would be utilized to assist with the increased homelessness population, and introduced Jenn Lowe from the Association of California Cities, Orange County (ACC -OC). Volume 63 - Page 546 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Jenn Lowe, ACC -OC Member Services Manager, provided a brief update on how ACC -OC was involved in creating a Joint Powers Agreement (JPA) - Orange County Housing Trust and explained the approval process of AB 448, what it will do, and how the funds will be used to help those that have been homeless for more than one year. She indicated the committee is moving quickly due to a large housing bond on the November 6, 2018 ballot and confirmed that participation in the JPA is voluntary. Council Member Dixon reiterated the importance of this movement with all the Orange County cities working together, indicated Senator John Moorlach, and the Orange County Board of Supervisors, are in support of the bill, advised how the housing trust repository would work, explained the gap funding process for participating cities, and confirmed there would be no cost to the City to participate. Motion by Council Member Dixon, seconded 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) authorize the Mayor to send a letter in support of AB 448 (Daly, as amended June 14, 2018) as shown in the staff report. Jim Mosher discussed the legislative analysis of AB448 and clarified that Council would not be voting to create the JPA itself, which can be formed without legislation, but would be voting to allow the JPA to issue bonds and go into debt. 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 17. Confirm Annual Appointments to the Finance Committee [241100-20181 Council Member Muldoon indicated it has been an honor to serve on the Finance Committee, announced he will be relinquishing his seat to Council Member Peotter, and suggested naming Mayor Pro Tem O'Neill as the Chair. Motion by Council Member Muldoon, seconded by Council Member , 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) confirm Mayor Duffy Duffield's and individual City Council Members' appointments to the Finance Committee: (1) Mayor Pro Tem Will O'Neill, who will serve as Chair; (2) City Council Member Diane Dixon; (3) City Council Member Scott Peotter; (4) William Collopy based upon Mayor Duffield's recommendation; (5) Joe Stapleton based upon City Council Member Brad Avery's recommendation; and (6) Larry Tucker based upon City Council Member Jeff Herdman's recommendation. Council Member Kevin Muldoon's citizen member appointment will proceed at a future City Council meeting by separate action. The citizen appointees will serve a one-year term ending June 30, 2019. 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. PUBLIC COMMENTS ON NON -AGENDA ITEMS Lesley Miller expressed concerns over the enclosures for the Snowy Plovers and questioned why they are needed, reported trash is piling up on the beach, and suggested the City create a contact number to report excessive trash. She indicated there are ocean front houses negotiating with the Coastal Commission to make improvements on their homes, believed the City is cooperating with the attorneys of the home owners, indicated this will diminish property values on Peninsula Point, and requested neighboring residents be notified of any increased paving or parking that may take place. Volume 63 - Page 547 City of Newport Beach Study Session and Regular Meeting June 26, 2018 XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Mayor Duffield reported on the Executive Watershed Committee meeting and indicated issues with sediment, trash and vegetation collecting in the Harbor are being addressed by beach cities upstream. He announced that an agreement has been made so those cities will be contributing funds to assist in paying for a $70 million harbor dredging project, which could take some of the financial burden off Newport Beach. XVIII. PUBLIC HEARINGS 18. Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Newport Beach Restaurant Association Business Improvement District's Fiscal Year 2018-2019 [100-20181 Mayor Duffield recused himself due to business interest conflicts. Administrative Analyst Locey provided the staff report and City Clerk Brown announced no protests were received. Mayor Pro Tem O'Neill opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Herdman, seconded by Council Member Peotter, to a) adopt Resolution No. 2018-45, AResolution of the City Council of the City of Newport Beach, California, Confirming the Levying of Assessments for the Fiscal Year of July 1, 2018 to Jun 30, 2019 for the Newport Beach Restaurant Association Business Improvement District, since protests represented less than 50 percent of the total assessment amount; b) 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 c) appoint the following Newport Beach Restaurant Association Business Improvement District members to serve as the Newport Beach Restaurant Association Business Improvement District's Advisory Board of Directors for Fiscal Year 2018- 2019: Phil Crowley, Modo Mio Thaddeus Foret, The Winery Restaurant and Bar Juan Carlos Godinez, Pizza Nova Matthew Meddock, Sessions West Coast Deli Jordan Otterbein, A Restaurant and Market Kenyon Parr, Five Crowns and Side Door Eunjoo Pluenneke, Balboa Lily's Christopher Roman, Fork, Knife + Spoon Talia Samuels, representing Moulin Ron Schwartz, Muldoon's Irish Pub Jim Walker, The Bungalow Restaurant. 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 Recused: Mayor Duffield 19. Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Corona del Mar Business Improvement District's Fiscal Year 2018-2019 [100-20181 Administrative Analyst Locey provided the staff report and City Clerk Brown announced no protests were received. Volume 63 - Page 548 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Mayor Duffield opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Herdman. seconded by Council Member Dixon, to a) adopt Resolution No. 2018-46, A Resolution of the City Council of the City of Newport Beach Confirming the Levying of Assessments for the Fiscal Year of July 1, 2018 to June 30, 2019 for the Corona del Mar Business Improvement District, since protests represented less than 50 percent of the total assessment amount; b) 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 c) Appoint the following Corona del Mar Business Improvement District members to serve as the Corona del Mar Business Improvement District's Advisory Board of Directors for Fiscal Year 2018-2019: Ernie Caponera, Newport Properties Keith Dawson, Dawson & Dawson Edward Hanley, Hanley Investment Group Hamid Kiampur, 76 Gas Station Scott LaFleur, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Jasmin Mortazavi, Mathnasium Bernie Svalstad, Upland Stor King. 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 XIX. CURRENT BUSINESS 20. Resolution Authorizing the Temporary Closure of Selected Streets for the 4th of July Holiday Period [100-20181 Police Chief Lewis and Deputy Police Chief Birch utilized a PowerPoint presentation to discuss the goal for the July 4th holiday, display the Safety Enhancement Zone, highlight the increased police presence, report on enforcement, citation and arrest data, and contact, and discuss where the public can receive and provide the Police Department information. Mayor Duffield and Council Member Dixon commended former Mayor Mike Henn for all his work to change the atmosphere on the Peninsula during the July 4th holiday. In response to Council questions, Police Chief Lewis encouraged residents and visitors to be proactive if they know of upcoming issues or see problems on the Fourth of July, and reported on the Police Department's increased enforcement relative to fireworks, especially on the beach. Deputy Police Chief Birch explained that San Joaquin Hills Road is being closed so emergency vehicles have access to the road. Council Member Avery commended the Police Department and discussed the difference in the holiday compared to 10 years ago. Lesley Miller requested more trash containers at the Wedge during the holiday. Recreation Manager Harmon utilized a PowerPoint to highlight City -sponsored July 4th celebrations, thank the citizen planning committee members and sponsors, and announce the hours of operation for the Peninsula trolley service. Volume 63 - Page 549 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Nancy Skinner thanked the City and asked if Mayor Duffield was participating in the Mariners parade. Motion by Mayor Pro Tem 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 physicalchange to the environment, directly or indirectly; and b) adopt Resolution No. 2018-52, AResolution of the City Council of the City of Newport Beach, California, Authorizing the Closure of Back Bay Drive, the 100 Block of Orange Street from Pacific Coast Highway Traffic, Via Oporto from Via Lido to 32^d Street, San Joaquin Hills Road Between Back Bay Drive and the Entrance to Park Newport Apartments, and Via Malaga Between Via Oporto and Via Lido. 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 21. Public Meeting on the Proposed Modification of the Newport Beach Tourism Business Improvement District's Management District Plan [100-2018] Mayor Duffield recused himself due to business interest and source of income conflicts. Tara Finnigan provided the staff report and noted the public hearing will be held on July 10, 2018. Debbie Snavely, General Manager of the Newport Beach Marriott Hotel and Spa, Chair of Newport Beach and Company, and Chair of the Newport Beach Tourism Business Improvement District (TBID) Board of Directors, provided an update on Transient Occupancy Tax (TOT) amounts, the history of TBID and what the funds are used for, and Visit Newport Beach's (VNB) success in booking room reservations. She also pointed out TBID's success in not using any City funds and discussed the request to add the Lido House Hotel as a new member to TBID. 22. Underground Utility Assessment District No. 117 — Award of Contract No. 7337-1 and Authorization of Limited Obligation Improvement Bonds [381100-2018] Council Member Muldoon recused himself due to potential business interest conflicts. Deputy Public Works Director Vukojevic and Finance Director Matusiewicz utilized a PowerPoint presentation to highlight the boundary of the resident -driven assessment district, review the cost, and discuss the project and financing schedules. City Manager Kiff pointed out that this is not normally how the City handles assessment districts and believed the City's risk is low and assists in keeping the project on schedule. In response to Mayor Pro Tem O'Neill's question, Finance Director Matusiewicz confirmed the residents already provided initial payment for the project, it would be a Council decision whether to refund the money if the project was not approved, and, if the bonding did not move forward, the City could loan the project the money and further assess the residents. Council Member Herdman emphasized that undergrounding projects are not just for aesthetic reasons, as stated by the Southern California Edison (SCE) representative at a previous meeting, commended staff for coming up with the idea to do the civil work on this project to keep the project affordable, hoped it does this for future projects, and pointed out that this is an assessment to the residents of the assessment district, not a tax. Council Member Dixon commended staff, Council Member Peotter, and the residents of this assessment district, and discussed the lawsuits that occurred due to transformers during the Napa fire. Volume 63 - Page 550 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Council Member Peotter discussed the issues with the Balboa Island undergrounding project, pointed out this is a private/public effort, expressed hope other neighborhoods would take advantage of this streamlined, less expensive process, and thanked the citizens for their efforts. Patti Gorczyca, member of the assessment district working group, listed reasons why undergrounding is important and not just for aesthetic reasons. She thanked City staff and the City Council, especially Council Member Peotter, for assisting with the process and indicated the residents are looking forward to the completion of the project. Mark Simon thanked Council and City staff for their innovative thinking and requested Council approval. Motion by Council Member Peotter. seconded by Council Member Dixon, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302 (d) (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it will not have an adverse effect on the environment; b) approve the project plans and specifications; c) award Contract No. 7337-1 to Asplundh Construction Corp. for the bid amount of $2,167,875.00 for Underground Utility Assessment District No. 117, and authorize the Mayor and City Clerk to execute the contract; d) establish a contingency of $325,000.00 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract; e) approve Professional Services Agreement with NV5 of Irvine, California, for a not -to -exceed fee of $293,269.00 for Construction Administration and Residential Permit Support Services (C-7337-2); and 0 adopt Resolution No. 2018-47, A Resolution of the City Council of the City of Newport Beach, California, Authorizing and Providing for the Issuance of Bonds Pursuant to the Provisions of the Improvement Bond Act of 1915 for City of Newport Beach Assessment District No. 117 and Approving Certain Documents and Authorizing Certain Actions in Connection Therewith. 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 Recused: Council Member Muldoon 23. Calling the November 6, 2018 General Municipal Election — Proposed Charter Amendment [391100-2018] City Manager Kiff reviewed the amendments to the resolutions and exhibit Jim Mosher questioned the cost to add the measure to the ballot, reminded Council to update the names in the resolution of the Council Members who will be writing ballot arguments, asked additional questions for Council to consider, believed the ballot description needs more amendments, and suggested waiting until the next meeting to approve the item. Joy Brenner discussed unintended consequences of placing a Charter amendment on the ballot and the importance of public input, believed and explained why she feels this is being done for political reasons, and emphasized candidates need to abide by the contribution limits. Nancy Skinner listed everything that was included in the city hall and park project, not just the city hall building, and reviewed the bid and financing climate at the time the project was approved. Mayor Pro Tem O'Neill noted there was a Charter amendment on the ballot in 2016 and none of the flyers had his photo on them, even though he was a proponent; however, noted independent expenditures were spent in favor of one of his opponents. Volume 63 - Page 551 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Council Member Herdman noted he received emails opposing this proposal, indicated there is no effect on the community to use COPS and no municipalities in California or possibly the country have this type of restriction, believed it is not a sound practice to restrict City Council's lease obligation debt, and supported the continued use of COPS at the discretion of Council. Council Member Muldoon believed this is an opportunity to give the voters more power over how their money is spent and should go to a vote. He noted he requested this issue be reviewed by the Finance Committee two years ago, but it never was. Council Member Peotter took issue with the cost of the city hall and park project and believed the voters would not have let the cost escalate. He stated the proposal will give voters a say when Councils are going to encumber long term debt for the City. Council Member Avery noted he does not feel this is particularly good public policy, but since Council Members are chosen to make the best decisions for the City, he indicated he will be supporting this because the community probably wants a say in these types of issues and in reaction to the cost of the city hall and park project. He indicated that the proposal is a good compromise. Council Member Dixon stated this is one of the more difficult votes she will be making, indicated she would have wanted an advisory vote on this and for it to have been reviewed by the Finance Committee, discussed how the revenues are used in the City, believed the proposal will ultimately protect the City, and noted there will be many opportunities for the community to educate themselves on this issue prior to the November election. Following a short recess, City Attorney Harp noted he has never seen more than three Council Members place their names as authors to a Direct Argument; however, the drafting of the argument could be done during an open meeting if Council proceeds with allowing a majority of Council to write the argument. He clarified that adding others to the list of authors would lose the legislative priority for writing arguments. 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) adopt amended Resolution No. 2018-48, 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 Submission of a Proposed Charter Amendment; c) adopt amended Resolution No. 2018-49, 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 Submitting a Proposed Charter Amendment; d) adopt amended Resolution No. 2018-50, A Resolution of the City Council of the City of Newport Beach, California, Setting Priorities for Filing Written Arguments Regarding a City Measure, and Directing the City Attorney to Prepare an Impartial Analysis; e) adopt Resolution No. 2018-51, A Resolution of the City Council of the City of Newport Beach, California, Providing for the Filing of Rebuttal Arguments for the City Measure Submitted to the Voters at the General Municipal Election to be Held on Tuesday, November 6, 2018, Pursuant to California Elections Code Section 9285; and f) designate Mayor Duffy Duffield, Council Member Kevin Muldoon and Council Member Scott Peotter to create a Direct Argument and Rebuttal Argument for the ballot measure. 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, Mayor Duffield Noes: Council Member Herdman Volume 63 - Page 552 City of Newport Beach Study Session and Regular Meeting June 26, 2018 24. Newport Beach Voter Protection; Rescission of Resolution No. 2018-8 Relating to Subpoenas [100-20181 Mayor Pro Tem O'Neill suggested striking references to Elections Code Sections 9607 and 9608(b), emphasized the proposal focuses on paid signature gatherers, is not being used to invalidate signatures, helps ensure paid circulators are complying with State codes, and the only additional burden is to provide a copy of the certificates to the City Clerk. Council Member Dixon questioned the need to include regulations in the Newport Beach Municipal Code (NBMC), especially since no information has been provided relative to the Orange County District Attorney's investigation. In response to Council Member Avery's questions, City Clerk Brown explained when the City's election official should be receiving a certificate and confirmed she has never received one. City Attorney Harp reiterated the intent is to ensure paid circulators know the rules, is not onerous to companies to provide the certificate for each paid circulator, and read the language included in the Elections Code. Council Member Muldoon noted he would be upset if he was one of the people who had signature fraud done to them and believed the proposal protects voter integrity in the City. City Attorney Harp reviewed the subpoena process, pursuant to the Charter, discussed the letter from the subpoenaed company, and believed the ordinance deals with the issue that occurred. Council Member Herdman questioned how the proposal would prevent this from happening again. He expressed concern with adding another layer for the citizens to redress and another layer of bureaucracy. In response to Council Member Dixon's question, City Attorney Harp noted that every violation of the NBMC is a misdemeanor, but they would work with the City Clerk's Office to ensure people are aware of the regulation. Nancy Skinner stated the problem occurred when a signature gatherer hired someone else to gather signatures. She believed Elections Code Sections 9608 and 9610 require the certificates to be submitted to the proponent. City Attorney Harp indicated the proposal is to have the company also submit the certificates to the City Clerk. Ms. Skinner believed the regulation has nothing to do with forging signatures and hoped this could be discussed during a study session. Jim Mosher agreed the regulation does not deal with forgery of signatures and the certificates only acknowledge the signatures will not be used for any other purpose other than to qualify the measure, and noted this would not affect circulators of State petitions. He referenced the company's letter, noted the regulation does not apply to recall or referendum petitions, and believed the regulation would not be in the proper section of the NBMC and the method of rescinding the resolution is incorrect. Peggy Palmer requested regulations prohibiting the bullying of petition circulators. Mayor Pro Tem O'Neill disagreed with Mr. Mosher's interpretation of the regulation and indicated Ms. Palmer can submit proposed legislation to Council. Council Member Muldoon noted it is illegal to harass circulators and the police should be contacted in those instances. Motion by Mayor Pro Tem O'Neill, seconded by Council Member Muldoon, 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) waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No. 2018-12, An Ordinance of the City of Newport Beach, California, Adding Section 1.26.050 to Newport Beach Volume 63 - Page 553 City of Newport Beach Study Session and Regular Meeting June 26, 2018 Municipal Code Chapter 1.26 to Strengthen and Protect the Integrity of Elections within the City of Newport Beach, and pass to second reading on July 10, 2018; c) rescind Resolution No. 2018- 8, which authorized the issuance of subpoenas related to an investigation of alleged voter fraud; and d) direct City staff to turn over the documents gathered during the City's investigation of alleged voter fraud to the Orange County District Attorney for use in their on-going investigation. In response to Council questions, City Attorney Harp reviewed State law, but pointed out the regulation would also have the company send the certificates to the City Clerk for local issues only to show that the signature gatherers received adequate training and will obey the laws. He indicated this was a way. to deal with the issues that arose recently that were admitted to by the involved company. Council Member Dixon indicated she would like more information on the matter. Council Member Herdman asked what happens if the company failed to provide the City Clerk with the certificate. City Attorney Harp noted there is an educational component to this. He added the regulation also protects the proponents since they may not have enough signatures due to fraudulent behavior. He pointed out that he thought everyone would be supportive of knowing what the rules are. Council Member Avery suggested requiring the proponents to provide the certificates to the City Clerk since they have leverage with the company. Council Member Muldoon emphasized that the volunteers, proponents, and company did nothing wrong and the issue was with a person who was hired by a signature gatherer. The motion failed by the following roll call vote: Ayes: Council Member Muldoon, Mayor Pro Tem O'Neill, Mayor Duffield Noes: Council Member Herdman, Council Member Dixon, Council Member Avery, Abstain: Council Member Peotter Motion by Mayor Pro Tem O'Neill, seconded by Council Member Muldoon, 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) rescind Resolution No. 2018-8, which authorized the issuance of subpoenas related to an investigation of alleged voter fraud; and c) direct City staff to turn over the documents gathered during the City's investigation of alleged voter fraud to the Orange County District Attorney for use in their on- going investigation. The motion carried by the following roll call vote: Ayes: Council Member Herdman (changed his "no" vote after the vote was cast), Council Member Muldoon, Council Member Dixon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield Abstain: Council Member Peotter 25. Annual Appointments to Boards and Commissions [241100-2017] City Clerk Brown provided the staff report and noted four votes are required in order to be appointed. Ash Kumra reviewed his qualifications to be on the Board of Library Trustees. Council Member Muldoon stated he was impressed with Mr. Kumra's application and expressed hope he would continue to apply to be on the Board if not selected tonight. Volume 63 - Page 554 City of Newport Beach Study Session and Regular Meeting June 26, 2018 City Clerk Brown read the ballot votes for the Board of Library Trustees as follows: Kurt Kest — Herdman, Muldoon, Peotter, Avery, Duffield Lisa Winter — Dixon, O'Neill City Clerk Brown announced that Kurt Kest was appointed to the Board of Library Trustees for a four-year term. City Clerk Brown read the ballot votes for the City Arts Commission as follows: Lih Bender — Herdman Judy Chang — Muldoon Wayan Kaufman — Dixon, Peotter, Avery, O'Neill, Duffield City Clerk Brown announced that Wayan Kaufman was appointed to the City Arts Commission for a four-year term. City Clerk Brown read the ballot vote for the Civil Service Board as follows: Sharon Wood — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield City Clerk Brown announced that Sharon Wood was reappointed to the Civil Service Board for a four-year term. City Clerk Brown read the ballot votes for the Harbor Commission as follows: Ira Beer — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield William Kenney — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield Don Yahn — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield City Clerk Brown announced that Ira Beer and William Kenney were reappointed and Don Yahn was appointed to the Harbor Commission for four year terms. City Clerk Brown read the ballot votes for the Parks, Beaches and Recreation Commission as follows: Hassan Archer — Herdman, Muldoon, Dixon, Avery, O'Neill, Duffield Diane Daruty — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield Meredith Sandland — Peotter City Clerk Brown announced that Diane Daruty and Hassan Archer were appointed to the Parks, Beaches and Recreation Commission for four-year terms. City Clerk Brown read the ballot votes for the Planning Commission as follows: Peter Koetting — Herdman, Muldoon, Dixon, Peotter, Avery, O'Neill, Duffield City Clerk Brown announced that Peter Koetting was reappointed to the Planning Commission for a four year term. XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - 9:55 p.m. Volume 63 - Page 555 City of Newport Beach Study Session and Regular Meeting June 26, 2018 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 June 21, 2018, at 4:00 p.m. Leilani I. Brown-- City rownCity Clerk f Marshall "D Du field Mayor Volume 63 - Page 556