HomeMy WebLinkAbout00 - Written CommentsReceived After Agenda Printed
June 11, 2019
Item No. SS3
June 11, 2019, City Council Item SS3 Comments
The following comments on an item on the Newport Beach City Council agenda are submitted by:
Jim Mosher ( jimmosher(c)yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229)
Item SS3. Update on Short Term Lodging
Based on the attachments, it is good to see staff apparently planning to discuss the detailed
language of an ordinance with the Council before it is presented for introduction.
It would have been even better if the "clean" version that has been posted for review matched
the latest, amended "redline," but this appears to still be very much a work in progress.
The attempt to copy court -tested language from other cities is also good, but the Council should
understand there no universally -accepted model, and Newport Beach's currently ordinance,
which the other's language is being grafted onto, is quite different from others.
Indeed, since the fear in regulating internet advertisements is the possibility of challenge an
invalidation due to federal preemption, court decisions from other parts of the country may be as
relevant as the one cited from Santa Monica.
The most recent readily available one opining on this subject seems to be AIRBNB, INC. v. City
of Boston, Civil No. 18-12358-LTS (Dist. Court, D. Massachusetts 2019), which noted that a
recent ordinance enacted by the City of Boston "echoes ordinances enacted by San Francisco
and Santa Monica, both of which survived nearly identical legal challenges by Airbnb," yet might
still contain some unique provisions that will require further litigation (such as a provision
completely banning an internet host from posting any listings for Boston in the event of repeated
violations).
Thus, we have at least three examples of court -reviewed short term lodging of municipal code
for comparison:
• San Francisco's Chapter 41 A -- tested by Airbnb, Inc. v. City & Cty. of San Francisco,
217 F. Supp. 3d 1066, 1071 (N.D. Cal. 2016)
• Santa Monica's Chapter 6.20 -- tested by HomeAway.com, Inc. v. City of Santa Monica,
918 F.3d 676, 680 (9th Cir. 2019)
• Boston's Chapter 9-14 — with possible problems still being litigated in the case cited
above
It might be noted these codes all look very different from each other, and very different from
ours. So reliance on copying a few words out of context may not be sufficient to avoid
challenge.
One common feature that leaps out of these three, but which does not appear to be part of the
Newport Beach proposal as presently written, is that before attempting to regulate internet
advertising, each of these cities commits, in its code, to maintaining a readily available registry
of all units within the city that can be legitimately advertised at a particular moment, and by
June 11, 2019, City Council Item SS3 Comments - Jim Mosher Page 2 of 2
whom. The internet platform operator can then readily compare the listings on their site to the
city's registry to determine which listings are legitimate and which are not.
In contrast to this, our ordinance (proposed Sec. 5.95.050.C) seems to penalize the internet
platform operator if they fail, on their own, to determine, in some undefined way, if each user
advertising a Newport Beach location is the possessor of both a valid Newport Beach business
license (oddly, attached to the "unit" rather than the person) and a currently valid short term
lodging permit for the unit being advertised. The burden that places on the internet operator to
first understand our systems and then locate the information seems substantial. To reduce that
burden and survive challenge, I would guess Newport Beach would have to commit (in
its code) to producing an easily consulted and definitive registry like the other cities.
Another clear difference which needs more explanation is the definition of who is allowed to and
responsible for conducting the short term lodging operations, and how that definition impacts
"home -sharing." The Newport Beach code appears to restrict its application to property owners
in the strictest sense, while the other cities include lessees. Santa Monica not only includes sub-
lessees, but includes some strange language that places liability on all persons providing
services to the unit (including maintenance and even insurance), referred to collectively as the
potential lodging "host."
Without further explanation, it is not obvious what the intent is in copying language from Santa
Monica, but substituting "owner" for "host." In other words, is Newport trying to prohibit a family
from renting a room in a house if the person named on the deed is on vacation during the
renter's stay? And what if the recorded owner is a trust? Who must be present to have the
rental qualify as home -sharing? And if the arrangement does not qualify as home -sharing
because the recorded owner is not present during the stay, is it intended to be outside the range
of the code, and therefore not subject to TOT, etc.? (one might similarly wonder what the rules
are if a paid stay is longer than 30 days)
Received After Agenda Printed
June 11, 2019
Written Comments
June 11, 2019, City Council Consent Calendar Comments
The following comments on items on the Newport Beach City Council agenda are submitted by:
Jim Mosher ( jimmosher(a�yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229)
Item 1. Minutes for the May 28, 2019 City Council Meeting
The corrections suggested below in strikeout.underline format are to the passages from the
draft minutes shown in italics. The page numbers refer to Volume 64.
Page 107, Item SS2 (announcement of conflicts on CIP), first bullet: "Council Member Avery:
Balboa Peninsula Crosswalks Improvements Phase ll and Balboa Boulevard Pedestrian
Crossing Phase II projects due to real property interests"
[The video (at 12:25) confirms this is what Council Member Avery read from the City
Attorney's script, but from the PowerPoint slides, I suspect the reference was to Phase "I"
and 11" (not "II" and "ll") of the same project, referred to as Projects 18T03 and 19T11, both
reported on page 37 of the proposed CIP budget. See Slide 4 (Completed / Near
Completion: "Balboa Peninsula Ped Crossings") and Slide 7 (In Design: "Balboa Blvd Ped
Crossings Ph 2")]
Page 107, last paragraph: "Public Works Director Webb, Acting City Engineer Sinacori, and
Administrative Manager Copeland utilized a PowerPoint presentation ..."
Page 114, Item XVI, paragraph 5: "Susan DveraGk Dvorak expressed concerns..."
Page 114, Item XVI, paragraph 6: "Pat Vannes Banas spoke..."
Page 114, Item XVI, paragraph 7: "An unidentified speaker Peppy Palmer discussed the
issues she is having with a construction project next to her home, ..." [see video at 2:42:50; Ms.
Palmer, being well known to the Council, forgot to mention her name, but it seems unlikely she
intended to speak anonymously.]
Page 115, in "public hearing" section, paragraph 2, line 3: "size and length of this dock, the
precedence precedent it would set if permitted, the possibility of a large boat"
Item 3. Ordinance No. 2019-9: Adoption of an Ordinance Restricting
Construction Related Noise on Saturday and Posting of a Project
Information Sign for Construction Projects in High -Density Areas
I commented on this ordinance when it was introduced as Item 3 on May 28. Since nothing was
changed at first reading, all those concerns remain valid.
From the May 28 minutes, the Council's rationale for confining the ordinance to a mapped area
of the City was that it was neither needed nor desired in gated areas with strong homeowners
associations. Yet, as enacted, the ordinance applies to gated communities with strong HOA's
(Bayshores, Bay Island, Harbor Island, etc.) while providing no relief at all to vast areas without
gates on HOA's (essentially everything west of the Upper Bay, plus Santa Ana Heights. I
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 2 of 9
continue to be unable to understand the harm that would be done by requiring the posting of
contact information on the already -required construction fences in those areas.
Item 4. Resolution No. 2019-48: Approving the Proposed Residential
Dock Reconstruction Project at 939 Via Lido Soud
It's possible some of the Council members who voted to approve this might want to reconsider
their vote as some misleading statements were made at the hearing.
In particular, the Conzelman's may have created the impression that when they purchased their
home a few years ago, they were assured the could, by right, build a dock of the sort being
proposed, but that Council Policy H-1 had since been changed without their knowledge.
Administrative Manager Miller may have seemed to confirm this by saying that, in some areas,
Policy H-1 had formerly allowed docks to extend up to 20 feet beyond the pierhead line, but now
all extensions beyond the pierhead line need Harbor Commission review subject to the new
criteria. What Mr. Miller was referring to was the "west" side of Lido Isle (the straight part with
sandy beaches facing Marina Park), between U.S. Bulkhead Stations 172 and 174, where the
former Policy H-1 (see the 2008 and 2004 versions) did indeed allow 20 -foot extensions out to
the project line. But the present property is not in that section, and Policy H-1 has never
allowed construction beyond the pierhead line at this location, or anywhere else on Lido
Isle (other than between Stations 172 and 174). As Mr. Miller tried to explain, the existing dock,
extending several feet beyond the pierhead line, had not been constructed in conformity with the
approved plans.
Although it may not be completely relevant, since the newly approved dock could go to new
owners with different intentions, the Council should be aware they were presented with
testimony about the reason for wanting the oversized dock that conflicted with what the Harbor
Commission had been told. As the draft minutes indicate, the applicant assured the Council
"they do not intend to dock a large boat as it impedes their view." But when the same matter
was before the Harbor Commission on February 13, the same person told the Commission he
wanted to reconfigure the dock so it "could accommodate as many Harbor 20s as possible for
regattas, and could accommodate his wife's dream boat." Later the dock builder "reported
the proposed vessel's overall length is 79 feet." (per Harbor Commission minutes, pages 3
and 4 — which were in the staff report, but possibly overlooked).
Regarding the proposed resolution:
On page 4-5, in the fourth "Whereas," the statement "that the gangway and
reconfigured U -shape float (currently permitted to extend up to the pierhead line) would
extend 16 feet beyond the pierhead line;" appears to be incorrect with regard to "the
gangway and" and those words should probably be deleted. The gangway connects to
shore, and does not extend to, let alone beyond, the pierhead line.
2. On page 4-6, in the first "Whereas," it is not clear why it says "on or about February 13,
2019," for the Harbor Commission hearing date, since the date is quite certain. The
words "or about" sound needlessly evasive and should probably be deleted (with same
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 3 of 9
comment regarding the third "Whereas" on that page). In line 5 of the first "Whereas," the
reference to "NBMC" does not explain what code section was used for noticing, and it
should probably be inserted since it is not obvious from the context.
3. On page 4-7, in Section 1 (the CEQA determination), the increase from 1,287 square
feet to 1,765 square feet of overwater coverage represents a 37% expansion. It is not
clear how staff expects the Council to be able to find a 37% increase to be "negligible or
no expansion" (as is needed for the first cited exemption to apply). Indeed the need (or
lack of need) for such an expansion is likely to be an issue for the Coastal Commission.
4. In Section 2, the resolution, oddly, doesn't quote the required findings but paraphrases
and sometimes truncates them.
a. In the case of 2.A, the resolution indicates deviations from the Design Standards
are allowed in the event of "practical difficulties," but does not explain what the
practical difficulties are in this case.
b. In addition, as seems increasingly to be the case with variance requests
presented to the Planning Commission, the "facts" in support of the findings are
marshaled in such a way as to imply the decision maker has no responsibility to
use their independent judgment as to whether the proposal might be problematic,
but instead has a positive obligation to approve the deviation unless a member of
the public is able to supply irrefutable evidence that a required finding cannot be
met.
However that may be, as best I can tell, Section 2 completely, and without
explanation, fails to address the required finding of NBMC Section
17.50.040(B)(3). Namely, that the proposal conforms "to the policies and
regulations of the certified Local Coastal Program."
Item 6. Resolution No. 2019-50: Adopting a Resolution Pursuant to
Labor Code Section 3600.2; Workers' Compensation
The description of this item on the agenda, which simply repeats the above title's statement that
it involves adopting a resolution related to a Labor Code section having to do with workers'
compensation, is not particularly informative.
The staff report adequately mentions and describes AB -1749 ("Workers' compensation: off-duty
peace officer"), which enacted the new Labor Code Section 3600.2, but does not explain it was
prompted by the Orange County Board of Supervisors' denial (based on legal advice from their
counsel that they had no authority to grant them) of claims by off-duty Sheriff's Deputies for
injuries sustained while allegedly aiding victims of the tragic October 1, 2017, mass shooting in
Las Vegas.
According to the staff report, the present resolution would allow the City to grant a claim under
similar circumstances. And despite AB -1749's author's belief he was simply re -stating existing
law, under the new EIA rules the existence of such a resolution is now apparently necessary for
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 4 of 9
that agency to assist in paying. But it apparently, as with existing law, does not commit the City
to granting such claims.
Given that history, it might have been helpful to disclose if Newport Beach has previously
honored any workers' compensation claims in connection with the October 2017 tragedy, or any
other out-of-state incidents.
Item 11. Resolution No. 2019-53: Formation of Ad Hoc Committee on
Business Improvement Districts
It is good to see this committee/"working group" being formally and publicly created by the
Council, rather than appearing out of the blue by staff appointment (as has happened in the
past, most recently, with various aviation -related committees).
In that connection, although the staff report refers to this ad hoc committee as consisting of "two
Council members and City staff," it is presumably understood that the unnamed City staff
people are not really members of the committee, but simply resources available to assist they
two committee members in their research. If any non -Council -members were part of the
committee and had any say in its recommendation back to the Council, then the Brown Act
would require all the committee's discussions to be noticed and open to the public.
Regarding the substance of the committee's work, I'm not sure who they plan to talk to, but I
think it's important to realize most of the City's BID's evolved out of existing private
organizations that had experienced difficulty raising enough private funds to sustain themselves.
To keep the group going, a small group of enthusiasts then turns to the government to impose
involuntary dues on prospective members, with promises the groups will be self-sustaining with
no drain on public resources. But then they eventually seek a government "match" to the
involuntary contributions, and having established that as a "right," may even evolve back, as has
happened with Balboa Island and Balboa Village, into private organizations totally funded by the
government "match" with no member contributions at all. That model, it seems to me, is not a
particularly good or democratic one.
Item 15. Tentative Agreement with the Part Time Employees
Association of Newport Beach (PTEANB)
The staff report provides no explanation for why the negotiations with this group weren't started
until after the previous agreement with them had expired. That said, it is good to see it involves
no retroactive raises.
The staff report is less clear about what effect approving the MOU with the 55 represented
employees will have on the City's relationship with the additional 208 part-time staff who are not
represented by the group.
It also does not explain the significance of page 15-16 where the tentative agreement has been
signed by eight unidentified people, but not by the one PTEANB member whose signature
seems to be needed on page 15-15.
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 5 of 9
Regarding the substance of the agreement, it is a little disturbing to see the boilerplate
statement under "B" on page 15-5 (apparently common to all the City's MOU's) that there may
be "decisional or statutory lave' that allows agreements like this to prevail over provisions of the
City Charter. Given that Article XI, Section 5(b) of the California Constitution gives charter cities
"plenary" (which means "absolute") authority to set the compensation of their employees, it
would be good to know what laws those are that allow a council to set compensation contrary to
its charter.
Item 16. Tentative Agreement with the Newport Beach Fire
Management Association (NBFMA)
It is very good to see an agreement that has been reached before the old one expired, and that
involves no retroactive terms.
Item 17. General Liability Third Party Administrator - Approval of
Professional Services Agreement with AdminSure, Inc.
It is good to see staff concluding from the prescribed procurement process that someone other
than the present contractor is not only better qualified to do the work, but also cheaper (at least
for the new contract period).
The staff report might have acknowledged, however, that AdminSure is (and has been since
2014) the City's current incumbent on another contract (C-5976), for worker's compensation
claims. It might also have indicated how much the City is currently paying for the same services
($537,805 plus CPI for the five-year term of C-3366).
Item 19. Appointments to the Aviation Committee
It is a continuing mystery why one of the deal points in the Newport Coast annexation was that
residents there would have a special seat reserved for them on the Aviation Committee. Did
residents in Newport Coast want to be sure the City wouldn't push too hard for re -use of the EI
Toro Marine Air Station (fearing it might have affected them more than JWA)? Or was there
some other reason? In any event, it now has the curious effect that District 7, the district with
arguably the least impact from JWA, has the greatest representation on the Aviation Committee.
Regarding the other appointments, as City staff is undoubtedly aware, unlike the Airport
Working Group and Stop Polluting Our Newport, the name "Citizens Against Airport Noise and
Pollution" has not been found among legal entity registrations filed with the California Secretary
of State through June 4.
1 continue to object to having seats reserved for "The President ... or his/her designee" of any of
these groups. My reasons are these:
1. Although it may not be technically prohibited by the "Maddy Act" (Cal. Gov. Code Secs.
54970 et seg.), it is certainly contrary to the concept that local government citizen
appointments should be open to enough people to make them worth posting. Posting
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 6 of 9
notice of the opportunity to serve in a position for which a single person qualifies seems
rather pointless (indeed, for that reason, I don't think these citizen -appointee positions
were actually ever posted or advertised).
2. Requiring membership in a private organization as a pre -requisite for government
service is contrary to my notions of civics.
3. In the event the designated President chooses not to serve, giving a person
unconnected with the government the power to choose who will fill a government
position is also contrary to my notions of civics.
Item 20. Board and Commission Scheduled Vacancies - Confirmation
of Nominees
In commenting on this normally routine item, it is difficult to know where to begin. The
recommended actions ask the Council to commit two violations of the City Charter, with
one of those supported by written testimony developed in violation of the Brown Act.
I would start, however, by wondering how many of those being considered for appointment have
ever bothered to attend a meeting of the body they are applying for, let alone having contributed
anything to its deliberations, orally or in writing? Of the current crop of applicants, only Renee
West, a candidate for the Harbor Commission, cites prior attendance at its meetings as a
qualification (although I don't recall her speaking). And I recall Ash Kumra attending, candidate
for the Board of Library Trustees, attending one meeting (again, without saying anything, as
best I can recall) when he thought he might be appointed a year or two ago.
It is probably vain to note I have had an application in continuously for service on the Board of
Library Trustees, and attended and participated in nearly all their meetings, since 2009. And
have attended and participated in nearly all the Planning Commission meetings since 2011 (and
had an application in continuously since an unscheduled opening developed in later 2011). Yet
am evidently not considered a qualified candidate for either.
Board of Library Trustees
First, it might be noted that in nominating and appointing Barbara Glabman, who is currently
completing the second year of her 2017 appointment to the City Arts Commission, the Council
would be creating yet another vacancy on the latter commission, which the Ad Hoc
Appointments Committee was already unable to find qualified applicants for. Also, although
there is no Council policy prohibiting citizens from seeking appointment to another position
before completing the service they previously committed to, it does not seem like something the
Council would want to encourage. To be fair, given the Council's penchant for reappointing
incumbents, the current BCC Roster suggests there won't be an "opening" on the BLT until
2023 (when Ms. Ray will be termed out), and perhaps Ms. Glabman didn't want the two year
hiatus that would result if she didn't seek reappointment to the CAC in 2021.
It might also be pointed out that although the current BCC Roster indicates the incumbent, Janet
Ray, was appointed on "6/30/2015," she was actually appointed on September 8, 2015 (see
Item 21), which suggests the appointment process can be delayed when there is a lack of
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 7 of 9
qualified applicants, as seems, in the Ad Hoc Appointments Committee's opinion, to be the case
this year. In 2015, the Council had two positions to fill on the BLT, to one of which it apparently
intended to re -appoint incumbent Jill Johnson -Tucker, and to the other, newcomer Will O'Neill.
However, the Jack Wu matter caused Mr. O'Neill to withdraw his application and pursue a
Finance Committee appointment, instead. Rather than backfilling the list of applicants with
another name from the existing pool of qualified applicants, the Council instructed the Clerk to
re -advertise the vacancies so the desired appointee (Ms. Ray) would have time to add her
name to that pool. A re -advertising of opportunities to serve would seem appropriate again this
year in those cases where the Appointments Committee feels there are fewer than two qualified
applicants per position.
City Arts Commission
The recommended action to appoint Arlene Greer for a one-year term would violate City
Charter Section 702 ("Appointments. Terms.").
While the Council is free to follow the staff recommendation to waive the term limits it has
established in Council Policy A-2 (which are not part of the Charter), it is not free to waive the
requirements imposed on it by the people through their Charter. Section 702 clearly states that
citizens are to be appointed for four-year terms, and gives the Council no latitude to change
that.
The letter from five sitting City Arts Commissioners supporting that recommendation, attached
following Ms. Greer's application and designating her as their desired Chair -apparent, was
submitted in violation of the Brown Act — and for that reason, if solicited by the applicant, should
result in disqualification. The letter does not cite the public meeting at which the Commissioners
reached their decision, and I do not recall there ever having been one. If the letter is accurate, it
provides strong evidence the sitting Commissioners illegally discussed this matter outside a
public meeting, either together or serially — as they likely do other Commission matters. As the
current Chair, and the most experienced of the Commissioners, avoiding such situations should
have been especially Ms. Greer's responsibility.
Civil Service Board
The recommendation to make an appointment based on a single name provided by the
Civil Service Board violates Citv Charter Section 710.
The asterisked footnote on staff report page 20-3 says "this year's Civil Service Board
appointment would generally come from a list of three nominees provided by a majority of the
Civil Service Board members." But it is more than "generally." That this seat be filled by
appointment come from "a list of three persons nominated by a majority of the [other] four"
members of the CSB is a requirement of the Charter. The Charter does not give either the
Council or the CSB the latitude to waive the number "three."
In short, the vacancy on the CSB needs to be re -advertised until the CSB is able to come
up with three names from which the Council may choose.
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 8 of 9
And following the Charter prescription is more than a technicality, for allowing future CSB's to
present a single name would allow them to name their fellow members without any Council
discretion, which is clearly not what the Charter intended. The fact that, in this case, only one
person applied is irrelevant. The Charter requires the CSB to present three names, even if that
necessitates action on their part to scare up additional interested parties.
In their defense, at the June 3, 2019, meeting where the one application received was reviewed
and voted on, the CSB members were given a staff memo that did not explain the Charter
Section 710 requirement for three nominees. I was present at the meeting, but did not bring the
problem up to them since I, too, was unaware of it at the time.
Harbor Commission
As with the Planning Commission (see below), it is disturbing to see just three names being
offered from which the Council is expected to fill two "open" positions (that is, ones for which no
incumbent has applied for re -appointment).
In the case of the Harbor Commission, it is a bit difficult to fathom why the Appointments
Committee could produce only three names. In this case, we have both an unexpected
"retirement" as well as an incumbent choosing not to apply for re -appointment, resulting, too the
extent that was known, in 11 applications being submitted.
Without an explanation of what criteria were applied, it is hard to believe that 8 of the applicants
could not be recommended to serve on the Commission. And it would be interesting to know
what the criteria were. Since the Commission makes recommendations, including on spending,
that affect everyone, and not just harbor users, I personally believe it would be useful to have
people on the Harbor Commission who are not intimately familiar with harbor matters.
Plannina Commission
As with the Harbor Commission, having only three candidates from which to fill two "open"
positions on something as important as the Planning Commission is not, in my opinion, a good
thing.
And it seems more than a bit insulting to the remaining 9 applicants (including myself, there
being 12 total) to declare they are unqualified to serve.
As explained above having happened with the Board of Library Trustees in 2015, 1 would
suggest the Council use its discretion to re -post the existence of these vacancies.
Having sitting PC Chair Peter Zak (and HC Chair Dave Girling) choose not to apply for re-
appointment is highly unusual. And extending the application period would be similar to the
(mandatory) provision in the Elections Code that when an incumbent does not file for re-
election, the normal deadline for filing nominating papers is extended.
Compounding this problem, I believe that in attempting to follow Council Policy A-2, the City
Clerk has discarded applications of persons who may have assumed they were still active
candidates. Some of these may have had their names in the running for so many years, and
June 11, 2019, City Council Consent Calendar Comments - Jim Mosher Page 9 of 9
have become accustomed to the annual inquires about whether they are "still interested," that
they may have incorrectly assumed their names were still in the hat. But as it turns out, each
month prior to May the Clerk's Office discards all applications with date stamps older than two
years without alerting those people that they need to re -apply. The email they received the
previous year to enquire about their continued interest will have likely lulled them into a sense
the Clerk is watching over their application and keeping them informed about its status. But she
is not. To remedy this, I think it would be appropriate to send a one-time email notifying
appointment seekers whenever an existing application has been discarded and informing
them that if they are still interested they need to submit a new one.