HomeMy WebLinkAbout02/12/2019 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
February 12, 2019
I. ROLL CALL - 4:00 p.m.
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
II. CURRENT BUSINESS
SS1. 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 Whitlinger 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 KMA's 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.
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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 Harp 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
Caroline 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.
IV. CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 matter
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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.
IX. 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
COMMITTEE ACTIVITIES
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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 Rouda, 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 Island's 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.newportbeachca.gov/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 Rouda
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 IV.B.
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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
ORDINANCES FOR ADOPTION
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 Newport Beach, 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
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.
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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-7, F-8, F-11, F-13, F-14, F-15,
F-25 and F-28.
7. 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
8. Newport Beach Police Facility Remodel — Notice of Completion for Contract No. 7261-1
(17F12) [381100-2019]
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)] [381100-2019]
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.
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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 Mayor 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 1.5.50 -
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.
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City of Newport Beach
Study Session and Regular Meeting
February 12, 2019
Motion by Mayor 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
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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 Warmington, 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 signed by President Trump and its opportunity zones.
Charles Klobe asked if accessory dwelling units count toward the City's Regional Housing Needs
Assessment (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 Kitayama 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 Kitayama occurred on Bristol Street and
were also open for lunch, not just dinner.
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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 Dallape 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.
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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 Mayor 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 Bayuiew
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, A Resolution 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 Mayor 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 CEQA in 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
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.
XIX. CURRENT BUSINESS
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) [381100-20191
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 Mayor 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 Vozenilek, 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 her previous motion.
Motion by Council Member Avery, seconded by Mayor 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
XX. MOTION FOR RECONSIDERATION - None
XXI. ADJOURNMENT - 10:53 p.m.
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.
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nDiane B. Dixon, Mayor
Leilani I. Brown, City Clerk
Volume 64 - Page 40