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HomeMy WebLinkAbout01 - MinutesFebruary 26, 2019 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) February 2, 2019 I. Roll Call - 9:00 a.m. Present: Council Member Brad Avery, Council Member Joy Brenner, Council Member Jeff Herdman, Council Member Kevin Muldoon (arrived at 9:06 a.m.), Mayor Pro Tem Will O'Neill, Mayor Diane Dixon Excused: Council Member Duffy Duffield Pledge of Allegiance - Council Member Avery H. Public Comments on Non -Agenda Items Dr. Anne Marie Fine (slides), Kathleen Hallal (slides), Vanessa Armstrong (slide), Jennifer Iralam, Katherine Young, Amanda Plunkett, and Nancy Gardner discussed research and issues surrounding the use of pesticides, expressed concerns with pesticides being used at parks and schools, encouraged the City to discontinue the use of pesticides and use organic herbicides instead, encouraged people to review the Dewayne Johnson vs. Mansanto Company lawsuit, and indicated a study was provided to former City Manager Kiff that could be provided to staff. Jim Mosher highlighted last year's strategies, expressed concern that Council's goals are not part of today's presentations, and believed one of those goals was to look at election reform during a non -election year. Bernie Svalstad, Chairman of the Corona del Mar Business Improvement District, discussed plans for the dolphin topiaries at Coast Highway and Marguerite Avenue. Hoiyin Ip discussed Santa Cruz's general plan update outreach process and suggested using polling technology to assist with gathering data. Council Member Muldoon indicated he received the emails concerning pesticides and will be asking staff to start using organic alternatives. Council Member Brenner stated that polling technology was used during the League of California Cities meetings she attended and encouraged the City to use the technology during the General Plan process. III. Undate on Fiscal Issues City Manager Leung and Finance Director Matusiewicz provided a PowerPoint presentation outlining the FY 2017-18 General Fund (GF) results related to property tax, sales tax, and Transient Occupancy Tax (TOT), and discussed funding challenges associated with unfunded pension obligations, workers' compensation, and City infrastructure needs. Mayor Pro Tem O'Neill invited everyone to attend future Finance Committee meetings and discussed the City's contingency reserves, surplus funds, and additional pension payments. Mayor Dixon pointed out that only about 17% of property tax money comes back to the City, received confirmation that the Board of Equalization is still determining how sales tax will be distributed, noted the strain on staff relative to short term rental issues, and commended staff for paying its employee contribution, but noted shortfalls are paid by the GF. Volume 63 - Page 22 City of Newport Beach Planning Session (Special Meeting) February 2, 2018 Jim Mosher mentioned the discussion at the Planning Commission meeting relative to property value filtration, noted employees' salaries are increased to pay for their share of the contributions to retirement, which in turn means the City is still paying, and believed the open expenditure portal to view City checks has not been implemented. Dennis Baker complimented staff for its aggressiveness in receiving grants and hoped this continues. In response to Allan Beeks questions, Mayor Pro Tem O'Neill and Finance Director Matusiewicz explained the differences between the OF, restricted funds, enterprise funds, revenues from property taxes, sales taxes and TOTS, and the different types of revenues (non -spendable, restricted, committed, assigned, contingency, and surplus). Mayor Dixon added that these are cash flows into the City and there are rules and regulations to how they are kept in reserve. IV. Mana2rine Service Levels City Manager Leung reviewed service level considerations relative to enforcement, increased maintenance of public facilities, and maintaining service levels with rising demands. Using a PowerPoint presentation, Police Chief Lewis discussed a proposal and reasons to increase the current eight motorcycle officers to ten. Community Development Director Jurjis reviewed the results of the residential parking enforcement pilot program, the option to augment parking enforcement services with the existing vendor during peak times of the year, and proposed code enforcement changes. Assistant City Manager Jacobs reported on the success of having Code Enforcement Supervisor Cosylion in the Harbor Department, the concerns if he is removed from the Harbor due to his expertise, and noted Newport Beach Municipal Code Title 17 (Harbor Code) will be amended this year, which may require additional enforcement. Mayor Dixon suggested having the Finance Committee review the proposed code enforcement changes, but agreed that the City's annual visitors rate impacts City services. In response to Council questions regarding traffic enforcement, Police Chief Lewis reported that traffic safety is measured differently than crime statistics, provided information on how traffic safety funding occurs, clarified how traffic enforcement is distributed throughout the City, noted they also have an educational component to their service, and they have minimal code enforcement duties, depending on the type of enforcement needed. Council Member Avery pointed out the Newport Heights area is requesting additional traffic enforcement. Council Member Herdman expressed support for the hiring of additional traffic officers. Council Member Muldoon indicated that, unless the crime rate increases, he will not be supporting adding more traffic officers at this time. Regarding residential parking and code enforcement, Council Member Brenner expressed concern with increased enforcement since it appears that construction is forcing the residents to park illegally. Discussion ensued relative to whether the City wants to change the code enforcement model from reactive to proactive due to resident requests for more enforcement and the need for increased enforcement and education in the Harbor. Public Works Director Webb introduced Deputy Public Works Director Martin and utilized a PowerPoint presentation to discuss sidewalk public pressure washing and costs, the increase in need and demand for the service, what property owners are responsible for, and confirmed the budget level has remained constant for ten years. Council Member Muldoon expressed support for holding the line, but making adjustments for inflation. Council Member Herdman thanked staff for making the City look nice and requested no cutback in efforts. Volume 64 - Page 23 City of Newport Beach Planning Session (Special Meeting) February 2, 2018 Mayor Pro Tem O'Neill recused himself from cleaning service discussions since his law firm represents ABM. Utilizing a PowerPoint presentation, Public Works Director Webb highlighted the cleaning service and locations serviced, ongoing service issues, the use of staff resources to backfill service needs, staffing options, the need for increased services, and effects of wear and tear on facilities due to the transient population. Council Member Muldoon expressed support for combining or increasing the frequency of cleaning, but not adding in-house staff. Mayor Dixon indicated she would like to see a comparison of whether to conduct the service in-house or contract out the service. Council Member Avery noted the City needs to find a way to maintain its restrooms and sidewalks in a way that is welcoming. Dennis Baker discussed code enforcement issues associated with businesses hiring outside businesses to conduct pressure washing and suggested amending code enforcement hours to cover current off hours. Allan Beek explained why a restroom is needed at the end of the Peninsula, near the Wedge. Sandy Hassel Shortchff believed Code Enforcement Supervisor Cosylion needs to return to his duties at City Hall and someone else should be trained to handle issues in the Harbor. Dorothy Kraus believed Code Enforcement Supervisor Cosylion should remain on the Harbor and the City should promote within or train someone to fill the supervisor role. Regarding power washing, she pointed out the State is still in a drought and the City should continue to conserve water. Max Johnson suggested slightly increasing power washing in congested areas. Mel Beale expressed concern that the City does not have a regulation that limits the number of vehicles allowed to park at a residence at one time. Cheryl Laidlaw requested the City increase traffic and pedestrian safety at Superior Avenue and Coast Highway. Public Works Director Webb indicated the City is trying to have a pedestrian bridge built. Carol Lind requested power washing occur at least once a year at West Newport Park and improved cleaning service at the restroom located at Orange Street and Seashore Drive. Bernie Svalstad requested sidewalks in Corona del Mar be cleaned once a year. Public Works Director Webb noted the City currently conducts spot cleaning in Corona del Mar. Jim Mosher noted the Orange County Transportation Authority (OCTA) removed trash receptacles at bus stops, encouraged Council to receive public input before changing code enforcement to be proactive, expressed support for in -sourcing services due to the Public Employees' Pension Reform Act (PEPRA), and asked how many traffic violations are being conducted by motorcycle officers compared to patrols car officers. V. Break Mayor Dixon recessed the meeting at 11:06 a.m. and reconvened the meeting at 11:14 a.m. Without objection, Item VII was taken out of order. VII. Current and Proposed Capital Proiects Public Works Director Webb utilized a PowerPoint presentation for the entire portion of this discussion and displayed a booklet and a slide of current projects of interest. Volume 64 - Page 24 City of Newport Beach Planning Session (Special Meeting) February 2, 2018 City Attorney Harp announced that City Clerk Brown recused herself from discussions relative to the boardwalk due to real property interest conflicts. Regarding the Newport Pier/McFadden Square/Oceanfront Parking Lot/Boardwalk Upgrade, Public Works Director Webb discussed the last improvement in 1990, the general consensus to have a dual trail system on the boardwalk from 15th Street to 36th Street, possible improvements that can occur at McFadden Square with the restrooms, kiosk, surface, vehicle traffic, and boardwalk widening, and at the 15th Street restroom area. Mayor Dixon expressed support for looking into the improvements, but believed all of it does not need to be done at the same time. Mayor Pro Tem O'Neill requested staff look at moving the centennial sphere from McFadden Square to the Civic Center Park sculpture garden since it tends to cause a congestion issue. Council Member Brenner believed art should be placed throughout the City and not just at the Civic Center Park, but this larger discussion can be done at a later date. Regarding the Newport Boulevard entry landscape, Public Works Director Webb noted the medians do not have irrigation, believed it may need beautification enhancements, and reported the view of the corporate yard can also be improved. Council Members Avery and Brenner expressed support for upgrading the entries into the City. Public Works Director Webb noted the Old Newport Boulevard Business District is requesting improvements to Old Newport Boulevard, indicated this could be discussed during the General Plan Update process, stated the area is not in the Street Paving Master Plan, and suggested considering moving parking into the center of the street. Mayor Dixon and Council Member Muldoon expressed support for including this in the General Plan Update process. Mayor Pro Tem O'Neill suggested looking into using any surplus funds from the median project as a one-time expense to upgrade the City's entryway and using gas tax money to assist with paving Old Newport Boulevard. Council Member Herdman cautioned against completely changing the ambiance of the beach town. Council Member Avery noted businesses are investing in the Old Newport Boulevard area, so the City can encourage more growth by cleaning it up and making it more inviting to invest. Council Member Muldoon recused himself due to business interests related to undergrounding matters. Discussion ensued relative to possibly using undergrounding funds Regarding the Santa Ana Avenue and Avon Street area, Council Member Avery believed improvements are needed due to safety reasons for pedestrians and bicyclists. Council Member Brenner requested to see what the public benefits are for all of the proposed projects discussed today. Regarding the Caltrans lot behind the A Restaurant, Public Works Director Webb reported the City is looking to purchasing it to offset parking. Regarding the Ocean Boulevard concrete street replacement at Carnation Avenue to Goldenrod Avenue, Council Member Brenner noted the construction on private property is impacting the area and emphasized the City should not lose its property or have it encroached on. Public Works Director Webb noted the City is working with the community and reported there may be a way to allow parking in the area. Council Member Herdman recused himself on Balboa Island drainage system discussions due to real property interests. Volume 64 - Page 25 City of Newport Beach Planning Session (Special Meeting) February 2, 2018 Public Works Director Webb discussed the Balboa Island drainage system issues, noted it needs an upgraded pump system, described the sub -terrain storm water pump station, and highlighted the proposed benefits and possible funding sources. Regarding the Newport Pier and restaurant at the end of the pier, Public Works Director Webb discussed the benefits and cost savings with moving the restaurant closer to shore or somewhere else near the pier. Mayor Dixon expressed support, noting the pier needs retrofitting. Council Member Muldoon suggested, if the restaurant is removed, to remove the center of the area so fisherman can use it for fishing. Council Member Brenner recused herself on the Orange Coast River Park discussions due to real property interest conflicts. City Manager Leung and Public Works Director Webb reported the Orange Coast River Park is requesting that each adjacent agency make a $20,000 contribution toward the development of the plan since their facilities tie into City facilities, and noted grants should be aligned with the budget process. Bob Wilson and Kristen Petros, Orange Coast River Park, provided a handout, indicated Newport Beach is the first city they have approached, noted the City provided some funding to hire a consultant for the vision plan, and this is the next step for the regional plan. Mayor Dixon indicated support for moving forward through the General Plan Update process and paying it back through grants, if received. Council Member Muldoon recused himself from discussions regarding the Boys & Girls Club due to potential property interest conflicts and left the meeting at 11:58 a.m. Public Works Director Webb and Recreation and Senior Services Director Detweiler discussed the Boys & Girls Club fundraising efforts, the improvements at the Newport Beach facility and their lease, the potential to use this facility for City recreation uses, how the Newport -Mesa Unified School District (NMUSD) will be partnering with the Club, and other programs the City has assisted with financially, and estimated 95% of the children served at the facility are from Newport Beach. Mayor Dixon and Council Members Brenner, Avery and Herdman commended the Club and expressed support for providing assistance at a level to be determined at a later date. Regarding the Old Newport Boulevard Business District, Rick Haskell discussed his investments in the area and the current state of the area, requested the City upgrade the area, and believed improvements would bring others in to the district. Dorothy Kraus indicated that Stop Polluting Our Newport (SPON) requests the City implement the 2016 Streetscape Master Plan this year and highlighted the SPON letter. Council Member Avery agreed that this needs to be looked at again. Mayor Dixon suggested doing something small and putting the rest in the General Plan process. Travis Wittan, Boys & Girls Club, described the larger project, noted $1.5 million will be invested into the Newport Beach facility, and reported they are already discussing recreation programs with City staff and leveraging the building during the day when the children are not there. He thanked the NMUSD for providing space to continue programming while the Club will be under construction. Tom Collister, Boys & Girls Club, discussed other benefits, the expansion of the sports activities, and the development of a teen program with the partnership of the NMUSD. Jim Mosher believed the Boys & Girls Club does not need City funding since they are raising private funds and also benefit from their lease agreement with the City. Volume 64 - Page 26 City of Newport Beach Planning Session (Special Meeting) February 2, 2018 Regarding the Santa Ana Avenue and Avon Street area, Max Johnson suggested enlarging or widening the crosswalk lines and installing flashing lights, improving bicycle access from Coast Highway, and providing lights, signage and a crosswalk at the Arches Bridge loop. VI. Update on Continuing Initiatives City Manager Leung reported that contracts will be coming to the City Council to provide enhanced social/work services to assist the homeless and look at ensuring ways to provide the safest, less polluting departures at John Wayne Airport (JWA). Mayor Dixon reported on her visit to Washington DC to discuss airport -related issues and discussions with Congressman Ronda and other Congressional delegates, the support of the Federal Aviation Administration's Reauthorization Bill, and Congressman Ronda and Congresswoman Napalitano's support of Newport Beach's efforts. She stated she is encouraged and will continue working with Congressman Ronda. Hoiyin Ip displayed a slide of the UNICEF Hunger Banquet she attended, described the outreach program, and suggested the City use UNICEF's outreach toolkit. Mayor Dixon thanked staff and the residents for attending the Planning Session and noted the budget process will be going before the Finance Committee and will ultimately come before the City Council for discussion and approval. VIII. Adiournment - 12:29 p.m. The special meeting agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 31, 2018, at 9:00 a.m. D Leilani I. Brown City Clerk Diane B. Dixon Mayor Volume 64 - Page 27 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting February 12, 2019 I. ROLL CALL - 4:00 p.m. II. Present: Council Member Brad Avery, Council Member Joy Brenner, Council Member Jeff Herdman, Council Member Kevin Muldoon, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon Excused: Council Member Duffy Duffield SSI. Clarification of Items on the Consent Calendar Mayor Dixon announced Item 16 (Appeal of Harbor Commission's Decision) will be moved to the Consent Calendar during the regular meeting in order to continue the Public Hearing to the March 12, 2019 City Council meeting. SS2. Beacon Bay Home Owner's Association Proposed Rate Change to Current Lease Community Development Director Jurjis and Real Property Administrator Whithnger utilized a PowerPoint presentation to display a map of the Beacon Bay properties, where they are situated in uplands and tidelands areas, to discuss the State Lands Commission's responsibilities relative to Beacon Bay, Beacon Bay's history, amendments to the Beacon Bay lease, the transfer process, rent calculation examples, the current and past lease version, revenues collected, the home owners' proposed rent structures, the home owners' revenue modeling, Keyser Marston Associate's (KMA) revenue modeling, staff and the State Lands Commission's concerns, and possible next steps, and reported the home owners provided staff with a market analysis, not an appraisal report. Council Member Muldoon suggested continuing discussions with the home owners and State Lands Commission and indicated that conducting an appraisal may be justified. Mayor Pro Tem O'Neill received information from Community Development Director Jurjis regarding what is happening in Lake Tahoe and believed something is needed to reconcile the home owners' and KMAs calculations. He suggested forming a Finance Committee subcommittee consisting of three of the citizen members to 1) reconcile the calculations, 2) if no appraisal is conducted, come back to the City Council with an analysis, 3) if the subcommittee is able to reconcile the calculations, provide a recommendation as to whether an appraisal is needed, and 4) if the community association pays for the appraisal, have the subcommittee review the appraisal and make recommendations to Council regarding rent terms. Jim Helfrich, President of the Beacon Bay Community Association, agreed with the suggestion to form a Finance Committee subcommittee in order to reach a solution, but believed their information meets the State Lands Commission's requirements and will not result in a revenue reduction for the City. He indicated that, although properties are split between uplands and tidelands, the association agrees that everyone should pay the same rate. He indicated the association would like the opportunity to meet with the subcommittee. Drew Lawler, referenced a handout, reviewed their market value analysis, what they believe they should be charged, how the change would be phased in, noted the taxes they pay for their property, believed the lease already contains an inflation protection provision, and compared the lease rates of their properties compared to the Basin Marine Shipyard. Volume 64 - Page 28 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Discussion ensued relative to the need to determine if the State Lands Commission requires the City to charge fair market value or a different amount following additional study, and if an appraisal is required versus a professional rent study. City Attorney H arp pointed out the State Lands Commission will also need to approve the lease agreement. In response to Jim Mosher's question, Community Development Director Jurjis indicated $10,000 has been expended for KMA s service. Council Member Muldoon expressed support for forming the subcommittee and suggested the City ask the State Lands Commission if the revenue modeling is acceptable in order to avoid additional costs and delays. There was unanimous consensus to move forward with a Finance Committee subcommittee SS3. Overview of City Trees Public Works Director Webb, Deputy Public Works Director Martin, and City Arborist Pekar, utilized a PowerPoint presentation to review City tree statistics, provide information regarding maintenance and pruning, service request examples, crew rental, palm skinning, additional and necessary tree maintenance duties, tree planting, City Council policies and ordinances, examples of standard trees, special landscape trees, dedicated trees, and neighborhood trees, described problem trees, criteria for removing standard trees, emergency removals due to wind and/or rain storms, reforestation of City trees, tree trimming standards, supplemental tree trimming, encroachment and construction permits/projects, and examples of approved removals and replacements. City Manager Leung indicated that a presentation regarding herbicide use will be coming before Council the second meeting in March. In response to Council questions, Deputy Public Works Director Martin and City Arborist Pekar confirmed the applicant pays all costs related to the removal or reforestation of special trees and City tree removal due to view impacts, reported the draft policy related to dedicating trees and benches is being reviewed by a Parks, Beaches & Recreation Commission subcommittee, discussed the efforts to rebuild the City's tree inventory, confirmed the division also conducts tree education at schools, explained the benefits of allowing a variety of trees for each street, and encouraged everyone to review the full presentation. III. PUBLIC COMMENTS IV. Carolyn Taylor, Chrissie Emmel, Bill Applegate and Dave Grant discussed and provided handouts to express their concerns regarding the Newport Beach Aquatic Center's (NAC) current board members, financial mismanagement and misuse of restricted fundraising money, and asked Council to conduct an investigation into the situation since the NAC is located on City -owned property. Jim Mosher expressed concern regarding recent requests before the Zoning Administrator that are not constructing houses on stilts and referenced Item 3 (Floodplain Management) on tonight's agenda. Community Development Director Jurjis reported the maps do not go into effect until March 2019. City Attorney Harp reported the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the titles. Regarding Closed Session Item IV.B and out of an abundance of caution, Council Member Brenner recused herself based on potential effects on a family member and City Manager Leung recused herself due to potential impacts on her personal finances. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Volume 64 - Page 29 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Agency Designated Representatives: Grace K. Leung, 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 Police Management Association (NBPMA); Newport Beach Professional and Technical Employees Association (NBPTEA); and Part Time Employees Association of Newport Beach (PTEANB). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4): 1 matter C. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Maury Friedson u. City of Newport Beach, et al. Mediation - Case No. 30-2018-01000354-CU-PO-CJC Claim No.: 20170000144 D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property Address: 406, 408, 410 South Bay Front, Balboa Island Agency Negotiator: Grace Leung, City Manager, Seimone Jurjis, Community Development Department Director and Lauren Whitlinger, Real Property Administrator Negotiating Parties: Seymour Beek Under Negotiation: Price and terms of payment V. RECESSED - 5:47 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Brad Avery, Council Member Joy Brenner, Council Member Jeff Herdman, Council Member Kevin Muldoon, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon Excused: Council Member Duffy Duffield VIII. CLOSED SESSION REPORT Regarding Closed Session Item IV.B, City Attorney Harp stated that, as the owner and lessor of the property, the City is concerned about the allegations raised against the management of the Newport Aquatic Center (NAC) and reported the City will be contacting the NAC board to discuss each concern and the terms of the ground lease. IN. INVOCATION - Pastor Phil Eyskens, Lighthouse of Costa Mesa Church of the Nazarene X. PLEDGE OF ALLEGIANCE - Council Member Avery XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON Volume 64 - Page 30 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Council Member Avery: • Utilized slides to announce that the Newport Heights neighborhood meeting has been rescheduled to March 6, 2019, at 6:00 p.m. in the Newport Theater Arts Center, discuss his time with his Newport Harbor High School mentee, Landon Searcy, and announce Steve Smith's 100th birthday Council Member Muldoon: • Requested a future agenda item to look at alternative options to using pesticides Council Member Brenner: Utilized a slide to announce a community meeting on February 13, 2019 at 6:30 p.m. at the Community Youth Center to discuss Grant Howald Park improvements Attended the League of California Cities newly -elected officials training session, an Association of California Cities - Orange County (ACC -OC) meeting, a Toll Roads meeting, the Planning Session, a luncheon with Congressman Ronda, and a Corona del Mar Residents Association board meeting Toured the Utilities Yard Council Member Herdman: • Utilized a slide to display the Pelican Hill magazine which included an article about the City's sculpture garden • Attended a meeting with Assemblywoman Petrie -Norris, the Newport Beach Chamber of Commerce boat parade awards dinner, a meeting to discuss Balboa Islands infrastructure, the Salvation Army ribbon cutting ceremony for a homeless facility in Tustin Ranch, the Water Quality/Coastal Tidelands Committee meeting, the Mayor's Dinner, and the Tim Tebow Foundation's Night to Shine event • Requested a future agenda item to discuss election reform Mayor Pro Tem O'Neill: • Attended the Newport Beach Foundation's Distinguished Citizens graduation, the County's Point - in -Time count, the Newport Beach Chamber of Commerce boat parade awards dinner, City Manager Leung's Wake Up Newport presentation, Newport Beach Fire Department's pinning ceremony, Judge Colover's reception, and a Government Finance Officers Association (GFOA) meeting • Utilized a slide to highlight the lifeguard tryouts held on February 10, 2019 Mayor Dixon: • Utilized slides to announce the General Plan Update Community Meeting on February 13, 2019, at 6:00 p.m. at Marina Park, City Council, announced City Council and Planning Commission meeting videos can be viewed on www.newnortbeachca.¢ov/calendar, and reported on an emergency sewer and roadway repair on Clubhouse Drive and an emergency water main break on Jamboree Road and Bayside Drive • Attended the National Conference of Mayors conference in Washington DC, the Community Emergency Response Team's (CERT) annual banquet, the Newport Beach Foundation's Distinguished Citizens graduation, the Planning Session, a meeting with Congressman Ronda regarding airport and dredging issues, her Town Hall meeting, the Mayor's Dinner, and a meeting with the Coasters XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Increasing buildable square footage for cottage within the City to discourage tearing them down (Herdman) The City Council unanimously concurred to place the matter on a future agenda. • Investigating the Newport Aquatic Center (NAC) (Brenner) Council Member Brenner requested to pull the item due to Closed Session Item IVB. Volume 64 - Page 31 City of Newport Beach Study Session and Regular Meeting February 12, 2019 XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Without objection, Mayor Dixon moved Item 16 (Appeal of Harbor Commission's Decision) to Consent Calendar so the public hearing could be continued to the March 12, 2019 City Council meeting. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 22, 2019 City Council Meeting [100-2019] Waive reading of subject minutes, approve as written, and order filed. Council Member Muldoon abstained on Item I since he was not present at the meeting. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCE FOR INTRODUCTION 3. Pulled from the Consent Calendar C/].ll]AgEWY1IAC9'U].+1��I7/]JY[/Aq 4. Second Reading and Adoption of Ordinances Updating Regulations Regarding Accessory Dwelling Units (PA2018-099) [100-2019] a) Find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA; b) Conduct second reading and adopt Ordinance No. 2018-14, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 20 of the Newport Beach Municipal Code and Adopting Zoning Code Amendment No. CA2018-003 to Implement Revisions to State Law Relating to Accessory Dwelling Units (PA2018-099); and c) Conduct second reading and adopt Ordinance No. 2019-1, An Ordinance of the City Council of the City of NewportBeach, California, Amending Title 21 of the Newport Beach Municipal Code and Adopting Local Coastal Program Amendment No. LC2017-003, as Modified by the California Coastal Commission (Accepting Their Suggested Modifications), Implementing New State Law Requirements Relating to Accessory Dwelling Units (PA2018-099). Council Member Avery recused himself on Item 4 due to real property interest conflicts. RESOLUTIONS FOR ADOPTION 5. Resolution No. 2019-10: Adopting a Memorandum of Understanding with the Newport Beach Police Management Association (C-2932) [381100-2019] 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 Resolution No. 2019-10, 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 Management Association; and c) Approve Budget Amendment No. 19BA-029 appropriating $69,409.42 to salary and benefit accounts from unappropriated General Fund surplus fund balance for the remainder of Fiscal Year (FY) 2018/19, representing the first three months of the three-year, three-month NBPMA contract. Volume 64 - Page 32 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Council Member Brenner abstained on Item 5 since she was not part of the negotiations. 6. Resolution No. 2019-11: Revised City Council Policies F-3, F-4, F-7, F-8, F-11, F-13, F-14, F-15, F-25 and F-28 [100-2019] 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. 2019-11, A Resolution of the City Council of the City of Newport Beach, California, Adopting Revised City Council Policies F-3, F-4, F-9, F-8, F-11, F-13, F-14, F-15, F-25 and F-28. Resolution No. 2019-12: Formation of a City Council Aviation Ad Hoc Committee to Review the Roles & Responsibilities of the Aviation Committee [100-2019] 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 Resolution No. 2019-12, A Resolution of the City Council of the City of Newport Beach, California, Creating a City Council Aviation Ad Hoc Committee to Review the Structure, Membership, Roles and Responsibilities of the Aviation Committee; and c) Confirm the appointment of Mayor Diane Dixon, Council Member Jeff Herdman and Council Member Kevin Muldoon to the Aviation Ad Hoc Committee. CONTRACTS AND AGREEMENTS S. Newport Beach Police Facility Remodel - Notice of Completion for Contract No. 7261-1 (17F12) [38/100-2019] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 Class 1 (maintenance of existing facilities involving no expansion of an existing use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; c) 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 d) Release the Faithful Performance Bond one year after acceptance by the City Council. 9. Uptown Newport Facilities Relocation and Acquisition Agreements [C -5387(D) and C-5387(E)l [38/100-2019] a) Determine that none of the conditions described in Section 15162 of the California Environmental Quality Act (`CEQA') Guidelines calling for preparation of a subsequent or supplemental EIR have occurred, that no changes or additions to the previously certified Environmental Impact Report No. ER2012-001 (SCH No. 20010051094) (`EIR") are required; and further, the action is also exempt pursuant to Section 15302(d) of the CEQA Guidelines (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding); direct City staff to file a Notice of Exemption; b) Approve the Facilities Relocation Agreement with SCE and authorize the City Manager to execute the Agreement; and c) Approve the revised Acquisition Agreement between the Authority, the City and the Developer, and authorize the City Manager to execute the agreement with any changes as may be deemed necessary by the City Attorney. Mayor Pro Tem O'Neill recused himself from Item 9 due to his membership in the Pacific Club and Council Member Muldoon recused himself on Item 9 due to real property interest conflicts. Volume 64 - Page 33 City of Newport Beach Study Session and Regular Meeting February 12, 2019 10. Approval of a Purchase Agreement with US Digital Designs, Inc. for the Purchase of a Fire Station Alerting System for the New Corona del Mar Fire Station No. 5 (C-8583-1) [381100-2019] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) (replacement of existing public facilities involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the purchase of the Phoenix G2 Fire Station Alerting system from US Digital Designs, Inc. at a not -to -exceed cost of $115,013.39; and c) Approve and authorize the City Manager and City Clerk to sign the Purchase Agreement with US Digital Designs, Inc. for this purchase. Council Member Muldoon recused himself on Item 10 due to business interest conflicts. 11. Contract with Arts Orange County to Manage Phase IV of the Sculpture Exhibition in Civic Center Park (C-8463-2) [381100-2019] a) Determine that the action is exempt from the California Environmental Quality Act CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve a contract with Arts Orange County for project management of Phase IV of the Sculpture Exhibition in Civic Center Park for a total amount not to exceed $ 84,711, and authorize the Mayor and City Clerk to sign the agreement. MISCELLANEOUS 12. Planning Commission Agenda and Action Report for the January 31, 2019 Special Meeting [100-2019] Receive and file. 13. Pulled from the Consent Calendar 16. 2888 Bayshore Drive (Newport Marina) Appeal of Harbor Commission's Decision [100- 2019] Continue the public hearing to the March 12, 2019 City Council meeting. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the Consent Calendar, except for the items removed (Items 3 and 13); and noting the abstention by Council Member Muldoon on Item 1, abstention by Council Member Brenner on Item 5, recusal by Council Member Avery on Item 4, and recusals by Council Member Muldoon and Mayor Pro Tem O'Neill on Item 9. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Muldoon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Duffield XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 3. Introduction of an Ordinance Amending Newport Beach Municipal Code Chapter 15.50 - Floodplain Management [100-2019] City Clerk Brown recused herself due to real property interest conflicts. City Attorney Harp announced, since Council Members Avery, Duffield, Herdman and Muldoon have conflicts, the Council Members in attendance will be drawing playing cards to determine which Council Member will be requalified to participate in this matter until its conclusion. Council Member Muldoon was requalified. Volume 64 - Page 34 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Motion by Mavor Pro Tem O'Neill, seconded by Council Member Brenner, to a) find this action 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; and b) introduce Ordinance No. 2019-2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 15.05.090 of Chapter 15.05, Adding a Section to Chapter 15.50 and Amending Certain Sections of Chapter 15.50 of Title 15 of the Newport Beach Municipal Code Related to Floodplain Management, and pass to second reading on February 26, 2019. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Muldoon, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Duffield Recused: Council Member Herdman, Council Member Avery 13. Confirmation of Appointments to the General Plan Update Steering Committee [241100- 20191 Council Members Herdman expressed support for the Steering Committee nominees and hoped the General Plan Advisory Committee will represent a broad spectrum of the community. Council Member Brenner discussed the ad hoc review committee process, highlighted the expertise of the applicants, expressed support for the nominees, and noted the remaining applicants will be considered to serve on the General Plan Advisory Committee. Mayor Dixon assured everyone that the Steering Committee's work will be open and transparent, highlighted their scope and provided an overview of the nominees' history with the City. She thanked Mayor Pro Tem O'Neill and Council Member Brenner for being on the ad hoc review committee and thanked the community for their continued interest. Susan Skinner expressed her reasons Council should not appoint Ed Selich and Larry Tucker to the Steering Committee, and displayed the referendum petition from 2016. Linda Watkins requested Council reconsider the appointments. Lynn Lorenz suggested appointing Tim Stoaks to the Steering Committee. Sandra Ayres suggested changing the makeup of Steering Committee so it represents other areas of the City and requested Council take more time in making this decision. Motion by Council Member Brenner, seconded by Council Member Herdman, 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) confirm Mayor Diane B. Dixon's appointments of Nancy Gardner (Chair), Ed Selich, Debbie Stevens, Larry Tucker and Paul Watkins to fill the seats on the General Plan Update Steering Committee; and c) direct staff to come back with a resolution that amends the makeup of the Steering Committee to have seven (7) members. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Muldoon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Duffield Volume 64 - Page 35 City of Newport Beach Study Session and Regular Meeting February 12, 2019 XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS City Attorney Harp highlighted his previous Closed Session Report for Pat Rolfus, Jim Wilmington, Jr. and Susan Skinner who expressed support for moving forward with the NAC investigation. Tom Holton took issue with a citation he received relative to using his garage for storage and requested to meet with City Attorney Harp and Community Development Director Jurjis. Lanae O'Shields, Southern California Gas Company Public Affairs Manager, discussed the benefits of natural gas and cautioned everyone to pay attention to any proposed energy policies. Peggy Palmer expressed concerns and requested assistance relative to dealerships conducting test drives in the Newport Heights neighborhoods. Ryan Farsai discussed the Tax Cuts and Jobs Act signedby President Trump and its opportunity zones. Charles Gold asked if accessory dwelling units count toward the City's Regional Housing Need Allocation (RHNA) count. XVIII. PUBLIC HEARINGS 14. Consideration of Planning and Land Use Entitlements for Harbor Pointe Senior Living, Located at 101 Bayview Place (PA2015-210) [100-2019] Community Development Director Jurjis, Principal Planner Ramirez, and Associate Planner Zdeba utilized a PowerPoint presentation to display the project site (former K tiyama site), discuss the proposed project, required entitlements, the development agreement, paths of travel, elevations, the environmental review, traffic analysis, mitigation, the land use change, Charter Section 423, provided a summary, and review the approvals by the Planning Commission and the Airport Land Use Commission. In response to Council questions, Community Development Director Jurjis and Associate Planner Zdeba discussed the pedestrian walkway, the procedure for trash pick-up, the access points for emergency vehicles, staff, and visitors, the use of the development agreement funds to purchase an ambulance, highlighted the allowable zoning for the site, and believed the zoning change from CO -G to PI has never occurred in the City before. Carol McDermott, representing Centerpointe Senior Living, utilized a PowerPoint presentation to discuss the need for senior care facilities, explain State licensing for Residential Care Facility for the Elderly (RCFE), highlight the proposed General Plan Amendment, review previous changes to the Bayview Planned Community, and discuss the project site, landscape plan, project improvements, open space, project evolution, project renderings, community engagement, environmental assessment, project benefits, and activities at the facility. She highlighted the review and approvals by the Planning Commission and the Airport Land Use Commission. In response to Council questions, Ms. McDermott reported trash will be picked up once a week, the area is only accessible to refuse trucks and is enclosed, they worked with the City relative to traffic circulation and are willing to install a security gate so no other vehicle traffic is permitted other than for emergencies and trash pickup. She indicated other deliveries will occur in the roundabout twice a week. Mayor Dixon opened the public hearing. Patti Lampman, Board Member of the Baycrest Court Homeowners Association, asked Council to protect their property rights and noted trash pickup for Fdtiyama occurred on Bristol Street and were also open for lunch, not just dinner. Volume 64 - Page 36 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Kirk Snyder, President of the Baycrest Court and Bayview Court Homeowners Associations, explained why they believe the City cannot change zoning in Area 5 and the project should be denied, expressed concerns regarding their property rights, and also expressed disappointment with their discussions with the applicant. Robert Attyah expressed the importance for senior citizens to have assisted living in the city they currently live in, expressed support for the project, and stated he would move his mother to this facility when completed. Norma Yacoub expressed opposition to the project and concerns regarding the parking plan, believed there would not be enough parking spaces which will impact the community. Rhonda Watkins believed the site would be better used for restaurant use, explained why she feels the environment is not conducive for assisted living/memory care, and suggested having this area reviewed during the General Plan Update process. Tom Dullope indicated he took a parent to a memory care facility and expressed support for having more options for this type of care in the community. Dave O'Keefe noted trash is collected on Wednesdays at 9:00 a.m., he lives closest to the proposed facility, the applicants have already scaled down the project, he had an uncle who had Alzheimer but they were not able to find assisted living for him in the City, and expressed support for the project. Mike Smith asked if Council read all the written comments in the staff report, questioned how parking onsite will be enforced, requested Condition of Approval No. 33 be amended to read, ..... shall be notified of and must comply with...", and asked when the City will start obtaining the ambulance and staff for Fire Station 7. In response to the public comments, Community Development Director Jurjis and Principal Planner Ramirez reported written comments were provided to Council, any changes to the Conditions of Approval need Council approval, highlighted a potential timeline for project development, ambulance procurement, and fire station staffing, and indicated the facility does not count toward the RHNA count since the residents are considered independent dwelling units. Ms. McDermott reviewed the methodology behind the parking plan, noted the architect specializes in senior care facilities, added the use permit requires all construction workers to park onsite or be delivered to the site, and reviewed security measures for the residents. Doug Pancake, architect, provided his background, discussed how parking and staffing issues will be managed, and believed the project has more than adequate parking. Hearing no further testimony, Mayor Dixon closed the public hearing. In response to Mayor Pro Tem O'Neill's question regarding potential legal challenges, City Attorney Harp indicated he reviewed the attorneys' information and believed it is defensible if Council approved the project. In response to Council Member Avery's question, Ms. McDermott believed the residents are concerned about the effect of the project on their property values, but indicated the applicants believe there will be no reduction in property values due to the quality of architecture, quiet population, conditions of approval, and compatibility. Mr. Snyder clarified the residents' concerns are not just with property values, but believed the facility does not fit in with the the fabric of their neighborhood and takes away from their quality of life, indicated they prefer the site be used for at least one restaurant, and requested zoning not be changed and this go through the General Plan Update process. Council Member Brenner described her experiences with having her mother at Crown Cove in Corona del Mar and the secured section for the Alzheimer residents. Volume 64 - Page 37 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Mayor Pro Tem O'Neill pointed out the City normally does not get the opportunity to look at projects that decrease traffic and believed, as the community ages, the City needs senior facilities. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Muldoon, to a) adopt Resolution No. 2019-13, A Resolution of the City Council of the City of Newport Beach, California, Certifying Environmental Impact Report No. ER2018-001, Making Facts and Findings, and Approving a Mitigation Monitoring and Reporting Program in Accordance with the California Environmental Quality Act for the Harbor Pointe Senior Living Project - A Senior Convalescent and Congregate Care Facility Located at 101 Bayview Place (PA2015-210); b) adopt Resolution No. 2019- 14, A Resolution of the City Council of the City of Newport Beach, California, Approving General Plan Amendment No. GP2015-004 to Change the Land Use Designation from General Commercial (CO -G) to Private Institutional (PI) for the Harbor Pointe Senior Living Project - A Senior Convalescent and Congregate Care Facility Located at 101 Bayview Place (PA2015-210); c) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2019-3, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Planned Community Development Plan Amendment No. PD2015-005 Amending Area 5 of the Bayview Planned Community (PC -32) for the Harbor Pointe Senior Living Project - A Senior Convalescent and Congregate Care Facility Located at 101 Bayview Place (PA2015-210), and pass to second reading on February 26, 2019; d) adopt Resolution No. 2019-15, AResolution of the City Council of the City of Newport Beach, California, Approving Major Site Development Review No. SD2015-007, and Conditional Use Permit No. UP2015-047 for the Harbor Pointe Senior Living Project - A Senior Convalescent and Congregate Care Facility Located at 101 Bayview Place (PA2015-210); and e) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2019-4, An Ordinance of the City Council of the City of Newport Beach, California, Approving Development Agreement No. DA2018-006 for the Harbor Pointe Senior Living Project - A Senior Convalescent and Congregate Care Facility Located at 101 Bayview Place (PA2015-210), and pass to second reading on February 26, 2019. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Muldoon, Mayor Pro Tem O'Neill, Mayor Dixon Nays: Council Member Avery Absent: Council Member Duffield 15. Introduction of an Ordinance Amending the City's Local Coastal Program for Consistency (LC2017-002) [100-2019] Mayor Dixon opened the public hearing. Hearing no testimony, she closed the public hearing. Motion by Mavor Pro Tem O'Neill, seconded by Council Member Herdman, to a) find the action statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15265(a)(1) of the California Code of Regulations, Title 14, and Chapter 3 of the Coastal Act. Section 15265(a)(1), which exempts local governments from the requirements of preparing an environmental impact report or otherwise complying with CEQAin connection with the adoption of a Local Coastal Program; b) adopt Resolution No. 2019-16, A Resolution of the City Council of the City of Newport Beach, California, Amending Policy 4.4.2-1 of City of Newport Beach Local Coastal Program Coastal Land Use Plan to Approve Local Coastal Program Amendment No. LC2017-002, as Modified by the California Coastal Commission; and c) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2019-5, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 of the Newport Beach Municipal Code to Approve Local Coastal Program Amendment No. LC2017-002, as Modified by the California Coastal Commission, and pass to second reading on February 26, 2019. The motion carried by the following roll call vote: Volume 64 - Page 38 City of Newport Beach Study Session and Regular Meeting February 12, 2019 NIX Ayes: Council Member Brenner, Council Member Herdman, Council Member Muldoon, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Duffield 16. 2888 Bayshore Drive (Newport Marina) - Appeal of Harbor Commission's Decision [100- 2019] The item was moved to the Consent Calendar so the public hearing could be continued to the March 12, 2019 City Council meeting. 17. Consideration of a Master License Agreement with New Cingular Wireless PCS, LLC (AT&T) for Siting of Small Cell Telecommunication Facilities on City -Owned Light Standards (C-8584-1) [381100-2019] Council Member Muldoon recused himself due to business interest conflicts. Community Development Director Jurjis and Real Property Administrator Whitlinger utilized a PowerPoint presentation to discuss the purpose of small cells, describe macro and micro cells, the placement of small cells on City -owned streetlight poles, proposed small cell designs, the Federal Communications Commission's (FCC) declaratory rule and order, proposed small cell rates, the license agreement terms, and public benefit. In response to Council concerns and questions, Community Development Director Jurjis and Real Property Administrator Whitlinger indicated AT&T's designs are similar to the designs approved in the Verizon agreement and will be included in the AT&T agreement, pointed out AT&T has been working with the City on the designs even though the FCC no longer allows local entities to impose design regulations, there is pending litigation relative to FCC's deregulations, and the City can send an opposition letter regarding the bill that allowed the FCC's deregulations. Mayor Pro Tem O Neill recused himself since his firm represents Ericsson who is an AT&T consultant. Cory Autrey, Wireless Policy Group, utilized a PowerPoint presentation to discuss the benefits to using small cell, the growth of wireless -only use, and ways to increase wireless network capacity, display a map of proposed small cell locations and design samples, and highlight the timeline. He indicated AT&T is aware of the challenges on Balboa Island and Lido Isle due to their shorter light poles. Jim Miller took issue with the proposal and term of the agreement, discussed lawsuits related to the FCC deregulation, and expressed concerns with the placement of the poles and the negative effects 5G may have on people. Jim Mosher believed Council has not directed staff to enter into a master license agreement with any carrier, questioned the small cell rate, disagreed with this proposal being exempt from needing a Coastal Development Permit, and asked if the City would be able to provide this infrastructure better than utilizing private providers. In response to Council questions, City Attorney Harp, Community Development Director Jurjis and City Manager Leung clarified that the City can regulate design, as long as it is reasonable and not burdensome, reported the City is doing this by including the designs in the agreement, and confirmed that any future requests will be handled in the same manner. Motion by Council Member Brenner, seconded by Mavor Dixon, to continue the item to a future meeting. Volume 64 - Page 39 City of Newport Beach Study Session and Regular Meeting February 12, 2019 Mr. Autrey reiterated that AT&T has been working with staff for a while and reached this point prior to the January 14, 2019 deadline in light of the FCC order, AT&T agreed to pay the City's market rate for two years, and the documented designs can be considered the preapproved design. He reviewed the lifespan of the agreement, indicated there would be about 45 poles, expressed concerns that, if the item is postponed, AT&T may want to revisit the terms and only have the option to use FCC's proposed rate, and requested approval so AT&T can move forward with the permitting process. Dan Vozeniliek, AT&T Area Manager, noted that every pole location will be going through the City's public process, the letter of intent expires tomorrow, discussed the pricing, and indicated a ten year agreement is needed due to the investment AT&T will be making into the project. In response to Council questions, Community Development Director Jurjis and City Attorney Harp reviewed the potential revenue at the City's rate, but clarified the FCC rate may be raised if it is a reasonable and justified amount. Further, the agreement includes a provision to negotiate the rate in good faith if the FCC order is overruled and includes a provision that waives claims regarding the rates. Council Member Brenner withdrew herpreoious motion. Motion by Council Member Averv, seconded by Mavor Dixon, to a) find this activity categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; b) approve a waiver of City Council Policy F-7 and L-23 based on findings contained in this staff report and Agreement, and due to the Federal Communications Commission Declaratory Ruling and Third Report and Order (WT Docket No. 17-79 and WC Docket No. 17-84), which impose certain limits on state and local governments' ability to regulate the deployment of small cell telecommunications facilities. The Declaratory Rule and Order limits the type and amount of fees the City can collect for private use of public property; and c) authorize the City Manager and City Clerk to execute a Master License Agreement for the Use of City -Owned Streetlights for Telecommunication Facilities with New Cingular Wireless PCS, LLC, in a form substantially similar to the agreement attached to the staff report. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Avery, Mayor Dixon Recused: Council Member Muldoon, Mayor Pro Tem O'Neill Absent: Council Member Duffield k%1A XXI. ADJOURNMENT - 10:53 p.m. m0mm The agenda and amended agenda were posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on February 7, 2019, at 4:00 p.m. Leilani I. Brown, City Clerk Diane B. Dixon, Mayor Volume 64 - Page 40