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HomeMy WebLinkAbout06/11/2019 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting June 11, 2019 I. ROLL CALL - 5:00 p.m. Present: Mayor Diane Dixon, Mayor Pro Member Joy Brenner, Council Council Member Kevin Muldoon II. CURRENT BUSINESS Tem Will O'Neill, Council Member Brad Avery, Council Member Duffy Duffield, Council Member Jeff Herdman, SS1. Clarification of Items on the Consent Calendar — None SS2. Recognizing the Newport Harbor High School Boys' Volleyball Team for Winning the, CIF Southern Section Division 1 Championship Newport Harbor High School Athletic Director Jerry Murray and Coach Rocky Ciarelli highlighted the volleyball team's season and introduced the players in attendance. Mayor Dixon read the proclamation and presented it to the team. Council Member Duffield also recognized Assistant Coach Dan Glenn and congratulated the team. SS3. Update on Short Term Lodging (STL) Community Development Director Jurjis, License Supervisor Navarrete, and Code Enforcement Officer Contino utilized a PowerPoint presentation to provide background, discuss the effect of the 9th Circuit Court ruling, the proposed ordinance and new owner application, interior postings, agent and hosting platform requirements, enforcement, expanding existing single- family STLs, and highlighted the proposed licensing requirement change, desire to continue restricting STLs to mixed-use zones, and limiting the number of vehicles parked on the street. In response to Council questions, staff reported the City has about 1,400 STL permits, but can have over 10,700 potential rental properties based on the allowed land use, discussed how STL Transient Occupancy Taxes (TOT) are collected, the use of the subpoena process, the purpose of Host Compliance, the TOT information on the STL ad, how code enforcement receives STL violation information from the Police Department, how violations are handled in the Harbor, how cities are working with hosting platforms to have them collect the TOT upfront and remit it to the owner for submission to the City, the TOT remittance schedule for hosting platforms, hotels, agents and owners, reviewed the City's quiet hours and how enforcement is handled, and assured that people can call relative to disturbances any time of the day. Mayor Pro Tem O'Neill suggested the property owner or management company provide more than one contact number. Council Member Brenner discussed the impacts of STLs in R-2 areas. Council Member Herdman pointed out the need for education and enforcement, and believed it should be emphasized to the renters that street parking is not guaranteed. Nancy Gardner suggested defining "noise" in the ordinance. Gary Sherwin, President of Newport Beach and Company, discussed the importance of tourism, believed the local owners and management companies follow the rules, but took issue with the hosting platforms, expressed concern with using City services without paying for them, thanked staff, and suggested hosting platforms be required to display STL permit numbers. Don Abrams, Abrams Coastal Properties, agreed with most of the suggested ordinance changes, except for eliminating the licensing requirement and closing unused STL permits. Volume 64 - Page 117 City of Newport Beach Study Session and Regular Meeting June 11, 2019 Nancy Arrache discussed illegal parking, believed more enforcement is needed, noted renting for commercial purposes is prohibited, expressed concern with trash left behind, suggested implementing a code enforcement hotline, and making STLs subject to periodic inspections. Karen Carlson agreed that permits should expire after two or three years, especially in R-1 zones, and the TOT amount should be listed. Jim Petrilli expressed concerns relative to the maximum occupancy calculation, requested that older permits be grandfathered at current occupancy, and suggested basing occupancy on the number of bedrooms, parking spaces and bathrooms. Craig Batley noted STL guests can be asked to leave immediately, there is more impact to the City by visitors than renters, houses cannot be rented without parking, expressed support for enforcement and higher fines, expressed concern relative to the 25% restriction in NBMC Section 5.95.020, and suggested forming a subcommittee to review this. Shannon Horan, Rental Manager with Abrams Coastal Properties, discussed the difference with how hosting platforms and property managers collect TOT, and believed the City cannot reconcile the money from hosting platforms. Roann Turk indicated she discloses the TOT amount to her guests, they pay it upon booking, and she remits it to the City. She also provides her guests with the Loud and Unruly Gathering Ordinance (LUGO) brochure and contact information. Carmen Rawson believed agents should be licensed, liable for what happens with the property, and collect the TOT. She also expressed concern with the proposed square footage calculation. Valerie Van de Zilver indicated she assisted six Orange County cities create STL ordinances. She discussed how her management company advises renters about TOT and how hosting platforms handle it, noted her company pays TOT to the cities, highlighted her rental policy, and pointed out the need to educate guests on the rules. James Petrilli noted his grandparents use their STL as their retirement income and expressed concerns with how the square footage calculation could affect owners and their livelihood. Scott Carpenter, itripvacations.com, stated his hosting platform follows all City and State rules, he is not a licensed real estate agent, TOT is disclosed to the renters, believed property managers should remit TOT and provide a detailed listing by property, asked how the vehicle regulation would be enforced, and agreed that a working group should be formed. Ken Rawson requested the City's help with making this a level playing field, expressed concern with trash at rental units and who to contact if the STL was booked through a hosting platform, expressed support for the ordinance changes, and believed the maximum occupancy number should be stricter. Jeff Bosson, SeaBreeze Vacation Rentals, believed Newport Beach handles STLs better than most cities, noted houses cannot be rented without parking, and suggested using two occupants per bedroom + two as the occupancy calculator. Jim Mosher suggested the ordinance require the City to produce a registry of legal STL properties, similar to San Francisco and Santa Monica, suggested taking another look at the definition of "owner," discussed TOT and visitor service fee amounts, questioned how many business licenses are needed, asked when a violation ends and another begins, and asked if the City will reserve the private right of action for the public. Volume 64 - Page 118 City of Newport Beach Study Session and Regular Meeting June 11, 2019 In response to Council questions, staff explained the reasoning behind revoking permits, confirmed the City receives about $4 million a year from STL TOTs, there is only one code enforcement officer on duty on Saturdays, the square footage calculation coincides with the Building and Fire Codes but it can be at the Building Official's and Fire Marshal's discretion if desired, it is already illegal to exceed the code's occupancy limits, discussed how complaints or violations are currently handled and the proposed fine schedule, reported TOT goes into the General Fund, and Host Compliance's services pay for itself. Mayor Pro Tem O'Neill believed a license requirement is not needed, a process for revocation of the permit for non-use should be created, and asked staff to speak with Ms. Horan regarding remittance issues she discussed. Council Member Muldoon indicated he is not supportive of requiring additional licensing for managing properties, limiting the number of occupants beyond what is allowed by the codes, and the automatic suspension of permits unless it is in the R-1 zone. He expressed concerns regarding large parties, food trucks, commercial use of properties, excessive noise, and trash. He suggested requiring the hosting platforms pay the TOT directly to the City at time of the booking. Council Member Brenner expressed concern with sending Police Officers to STLs repeatedly and the City not being properly reimbursed, and suggested including cost recovery into the ordinance, objected to favoring STLs in R-2 zones since disturbances are the same in any neighborhood, and believed the City should be tougher and have zero tolerance for noise disturbances. Mayor Dixon indicated she would like to form an ad hoc committee to discuss STL issues, agreed the City manages STLs well, and it has good owners and property managers overseeing these properties. III. PUBLIC COMMENTS Jim Mosher commended City Attorney Harp for assisting during a medical emergency at an Aviation Committee meeting on June 10, 2019. He also thanked the former City Manager and Fire Chief for placing defibrillators in City vehicles and buildings, and providing training to staff. IV. RECESSED - 6:49 p.m. V. RECONVENED AT 7:05 P.M. FOR REGULAR MEETING VI. ROLL CALL Present: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon Mayor Dixon announced she will be requesting that Item 4 be considered under Motion for Reconsideration. VII. INVOCATION - Pastor Jack West, Mariners Church Irvine VIII. PLEDGE OF ALLEGIANCE - Mayor Pro Tem O'Neill IX. NOTICE TO THE PUBLIC X. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Volume 64 - Page 119 City of Newport Beach Study Session and Regular Meeting June 11, 2019 Council Member Avery: • Attended the Balboa Island Parade and the first Homeless Task Force meeting Council Member Duffield: • Attended the 3rd Annual Newport Harbor Underwater Cleanup Council Member Muldoon: • Attended the Balboa Island Parade • Recognized City Attorney Harp for his assistance during an emergency at the recent Aviation Committee meeting Council Member Brenner: • Utilized slides to discuss her tour of the Police Department with Police Chief Lewis, tour of the Lifeguard Headquarters with Fire Chief Duncan, meeting with Fire Marshal Bass, and tour of the San Joaquin Reservoir with Utilities Director Vukojevic • Attended a Women in Newport Beach Government Luncheon, the Employee Appreciation Luncheon, the Corona del Mar Scenic 5K (slide), the Balboa Island Parade (slide), the Orange County Sanitation District meeting, and the Lido House Hotel one-year anniversary party Council Member Herdman: • Attended the Balboa Island Parade and thanked his colleagues for their participation, as well as Jack Callahan, Balboa Island Improvement Association President, the Wooden Boat Festival with Mayor Dixon, the Water Quality/Coastal Tidelands Committee meeting, the Employee Appreciation Luncheon, a tour of One Uptown Newport Apartments, and the Newport Beach Chamber of Commerce Marine Committee meeting • Spoke at the Little Balboa Island Summer Speaker Series • Announced the upcoming Newport Beach Art Exhibition on June 15, 2019, and the first Concert on the Green on June 16, 2019 • Displayed the new "Poop Fairy is On Vacation" sign that will be placed throughout the City to remind people to clean up after their dogs Mayor Pro Tem O'Neill • Recognized the students in the audience from Newport Harbor High School and Council Member Muldoon for his 1St Father's Day on Sunday • Attended a Newport Beach Foundation Distinguished Citizens event, the Balboa Island Parade, the Employee Appreciation Luncheon, and the Homeless Task Force meeting • Wished the entire community a Happy Father's Day Mayor Dixon: • Introduced her grandson Brooks Thompkins • Attended the Corona del Mar Scenic 5k, the District 1 Town Hall meeting, the Lido House Hotel one-year anniversary party, the grand opening of Fable & Spirit restaurant, the Balboa Island Parade, the Women in Newport Beach Government Luncheon, and the Employee Appreciation Luncheon • Utilized slides to announce the upcoming Vote Center Community Workshop on June 28, 2019, the 4th of July Newport Peninsula Bike Parade & Community Festival and Mariner's Park Independence Day Parade & Celebration, and the next Speak Up Newport community forum where Council Member Duffield and Harbormaster Borsting will speak XI. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Incorporating the Harbor Commission into the City Charter (Duffield) The City Council unanimously concurred to place the matter on a future agenda. • Creating a Marine Avenue Projects Committee (Standing Committee) (Muldoon) Volume 64 - Page 120 City of Newport Beach Study Session and Regular Meeting June 11, 2019 With Council Member Herdman recusing himself due to real property interests, the City Council unanimously concurred to place the matter on a future agenda. • Review of City Council Policy H-1 (Harbor Permit Policy) to Provide Direction to the Harbor Commission (O'Neill) The City Council unanimously concurred to place the matter on a future agenda. XII. PUBLIC COMMENTS ON CONSENT CALENDAR Kenyon Paar, General Manager of Five Crowns and SideDoor restaurants, expressed the importance of the Newport Beach Restaurant Association Business Improvement District (NBRA BID). Eunjoo Pluenneke, Secretary of the NBRA BID Board and owner of Balboa Lily's and Boardwalk by Balboa Lily's, expressed reasons why the NBRA BID is a huge value to the City. Jim Walker, owner of The Bungalow Restaurant, discussed the support of local restaurants at City events, explained why it is difficult for the NBRA BID to change to the 1994 BID law, took issue with City funds being provided to the Newport Beach Film Festival, and asked Council to consider the value of BIDs before making any decisions. Regarding Item 20 (Board and Commission Scheduled Vacancies), Jim Mosher expressed concerns regarding the nominations on the Civil Service Board, the City Arts Commission and the Harbor Commission, and discussed his belief that the City Charter, City Council Policy A-2, and the Brown Act were violated. City Attorney Harp confirmed that the appointment to the City Arts Commission would need to be a four-year term per the City's Charter and explained why it is acceptable to have only one nominee for the Civil Service Board vacancy. XIII. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the May 28, 2019 City Council Meeting [100-20191 Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. Pulled from the Consent Calendar RESOLUTIONS FOR ADOPTION 4. Pulled for discussion under Motion for Reconsideration 5. Resolution No. 2019-49: Annual Measure M2 — Program Eligibility Submittal [100-20191 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt the Measure M2 Seven -Year CIP; Volume 64 - Page 121 City of Newport Beach Study Session and Regular Meeting June 11, 2019 c) Adopt Resolution No. 2019-49, A Resolution of the City Council of the City of Newport Beach, California, Concerning the Status and Update of the Circulation Element, Mitigation Fee Program, and Pavement Management Plan for the Measure M2 Program; and d) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual eligibility requirements. Council Member Herdman recused himself on Item 5 due to real property interests. 6. Resolution No. 2019-50: Adopting a Resolution Pursuant to Labor Code Section 3600.2; Workers' Compensation [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. 2019-50, A Resolution of the City Council of the City of Newport Beach, California, Made Pursuant to California Labor Code Section 3600.2. 7. Resolution No. 2019-51: Adoption of Fiscal Year 2019-20 Appropriations Limit [100-2019] 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) Adopt Resolution No. 2019-51, A Resolution of the City Council of the City of Newport Beach, California, Determining and Establishing an Appropriations Limit (GANN) for Fiscal Year 2019-20 in Accordance with Article XIIIB of the California Constitution and Government Code Section 7910 in the amount of $ 201,601,920. 8. Resolution No. 2019-52: Authorizing the Temporary Closure of Selected Streets for the July 4th Holiday Period [100-2019] 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) Adopt Resolution No. 2019-52, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Temporary Closure of Back Bay Drive, the 100 Block of Orange Street from Traffic Off of Pacific Coast Highway, Via Oporto from Via Lido to 32nd Street, San Joaquin Hills Road Between Back Bay Drive and the Entrance to the Park Newport Apartment Complex, and Via Malaga Between Via Oporto and Via Lido. 9. Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of Public Hearing [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) Approve the Corona del Mar Business Improvement District's Fiscal Year 2018-19 Annual Report and its Proposed Fiscal Year 2019-20 Budget; and c) Adopt Resolution No. 2019-46, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2019 to June 30, 2020, and Fix the Time and Place of a Public Hearing for June 25, 2019. Mayor Pro Tem O'Neill abstained on Item 9. 10. Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of a Public Hearing [100-2019] Volume 64 - Page 122 City of Newport Beach Study Session and Regular Meeting June 11, 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) Approve the Newport Beach Restaurant Association Business Improvement District's Revised Fiscal Year 2018-19 Annual Report and its Revised Proposed Fiscal Year 2019-20 Budget; and c) Adopt Resolution No. 2019-47, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2019 to June 30, 2020, and Fix the Time and Place of a Public Hearing for June 25, 2019. Mayor Pro Tem O'Neill abstained on Item 10. 11. Resolution No. 2019-53: Formation of an Ad Hoc Committee on Business Improvement Districts [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. 2019-53, A Resolution of the City Council of the City of Newport Beach, California, Creating an Ad Hoc Committee on Business Improvement Districts, as amended to include a third Council Member to the committee; and c) Confirm Mayor Diane Dixon's appointments of herself, Council Member Joy Brenner and Council Member Jeff Herdman to the Ad Hoc Committee on Business Improvement Districts. CONTRACTS AND AGREEMENTS. 12. Street Pavement Repair Program — Notice of Completion for Contract No. 7442-1 (191103) [38/100-2019] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On November 13, 2018, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c); b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 13. Concrete Replacement Program — Notice of Completion for Contract No. 7434-1 (19R06) [38/100-2019] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On November 27, 2018, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c); b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 14. Newport Bay Trash Mitigation Project — Approval of Agreement for Catch Basin Connector Pipe Screens (CPS) (C-8022-1) [381100-2019] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1 (Existing Facilities) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve Budget Amendment No. 19BA-046 recognizing and appropriating $125,226 in new revenue and expenditures from Orange County Transportation Authority (OCTA) Measure M Competitive revenue (Account No. 1230052-431150-19X11) and Measure M Competitive CIP (Account No. 1230052-980000-19X11); and c) Authorize the City Manager to enter into the necessary agreements with United Storm Water, Inc. for $156,531.75 for the purchase and installation of 425 catch basin connector pipe screens (CPS). Volume 64 - Page 123 City of Newport Beach Study Session and Regular Meeting June 11, 2019 15. Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) (C-3362) [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; and b) Receive and file the Tentative Agreement between the City of Newport Beach and the Part Time Employees Association of Newport Beach. 16. Tentative Agreement with the Newport Beach Fire Management Association (NBFMA) (C-2946) [38/100-2019] 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) Receive and file the Tentative Agreement between the City of Newport Beach and the Newport Beach Fire Management Association. 17. General Liability Third Party Administrator - Approval of Professional Services Agreement with AdminSure, Inc. (C-8179-1) [38/100-2019] 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) Approve a five-year Professional Services Agreement with AdminSure, Inc. for Third Party General Liability Claims Administration Services at a not -to -exceed amount of $565,015.34, and authorize the Mayor and City Clerk to execute the Agreement. MISCELLANEOUS 18. Planning Commission Agenda for the June 6, 2019 Meeting [100-2019] Receive and file. 19. Appointments to the Aviation Committee [241100-2019] 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) Confirm Mayor Diane B. Dixon's appointment of Alan Guenther as the District 1 Member on the Aviation Committee for a term expiring June 30, 2025; c) Confirm Mayor Pro Tem Will O'Neill's appointment of Hugh Logan as the District 7 Member on the Aviation Committee for a term expiring June 30, 2025; d) Confirm Council Member Brad Avery's appointment of Steve Byers as the District 2 Member on the Aviation Committee for a term expiring June 30, 2022; e) Confirm Council Member Duffy Duffield's appointment of Bonnie O'Neil as the District 3 Member on the Aviation Committee for a term expiring June 30, 2025; f) Confirm Council Member Kevin Muldoon's appointment of Thomas Meng as the District 4 Member on the Aviation Committee for a term expiring June 30, 2022; g) Confirm Council Member Jeff Herdman's appointment of James Dunlap as the District 5 Member on the Aviation Committee for a term expiring June 30, 2025; h) Confirm Council Member Joy Brenner's appointment of Jeffrey Cole as the District 6 Member on the Aviation Committee for a term expiring June 30, 2022; i) Confirm Mayor Diane B. Dixon's appointment of Jack Stranberg as the At -Large Member on the Aviation Committee for a term expiring June 30, 2022; j) Confirm Mayor Diane B. Dixon's appointment of Stephen Livingston as the General Aviation Community Member on the Aviation Committee for a term expiring June 30, 2025; and k) Direct the City Clerk to advertise for the Newport Coast seat on the Aviation Committee. 20. Board and Commission Scheduled Vacancies - Confirmation of Nominees [241100-2019] 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; Volume 64 - Page 124 City of Newport Beach Study Session and Regular Meeting June 11, 2019 b) Waive the portion of City Council Policy A-2 (Boards, Commissions & Committees) that recommends nominating two or more candidates for each vacancy, if a sufficient number of candidates are available; c) Should the City Council nominate Arlene Greer for a potential seat on the City Arts Commission, waive a portion of City Council A-2; and d) Confirm the nominations made by the City Council Ad Hoc Appointments Committee: Board of Library Trustees [2 vacancies] 1. Janet Ray (incumbent) 2. Barbara Glabman 3. Carrie Williams 4. Ash Kumra Building and Fire Board of Appeals [1 vacancy] 1. Robert Ahlke (incumbent) 2. Crystal Chavez -Jones City Arts Commission [1 vacancy] 1. Arlene Greer (incumbent) 2. Maureen Flanagan Civil Service Board [1 vacancy] Maiqual (Mike) Talbot Harbor Commission [2 vacancies] 1. Marie Marston 2. Steve Scully 3. Renee West Parks, Beaches & Recreation Commission [2 vacancies] 1. Laird Hayes (incumbent) 2. Cynthia Sender 3. Sheela Voleti 4. Kate Malouf Planning Commission [2 vacancies] 1. Sara Klaustermeier 2. Alex Chazen 3. Mark Rosene Motion by ayor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the Consent Calendar, except for the items removed (3 and 4); and noting the recusal by Council Member Herdman on Item 5, abstentions by Mayor Pro Tem O'Neill on Items 9 and 10, and amendments to Items 1 and 11. The motion carried unanimously. XIV. ITEM REMOVED FROM THE CONSENT CALENDAR 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 [100-20191 Council Member Avery indicated the Newport Shores Community Association would like to opt out of the ordinance requirements and believed other homeowner associations should be provided that option. Following discussion, it was determined to move forward with Ordinance No. 2019-9 and direct staff to bring back a proposed amendment at a future meeting to allow homeowner associations the opportunity to opt out of the regulations. Volume 64 - Page 125 City of Newport Beach Study Session and Regular Meeting June 11, 2019 Motion by Mayor Pro Tem O'Neill, seconded by Council Member Herdman, 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) conduct second reading and adopt Ordinance No. 2019-9, An Ordinance of the City Council of the City of Newport Beach, California, Amending Portions of Chapters 10.28 and 15.16, and Adding Section 15.60.030 to the Newport Beach Municipal Code, Relating to Construction Activity and Signage in Designated High -Density Areas. The motion carried unanimously. XVII. MOTION FOR RECONSIDERATION 4. Resolution No. 2019-48: Approving the Proposed Residential Dock Reconstruction Project at 939 Via Lido Soud [100-2019] Mark Conzelman, appellant, confirmed he is available at attend the June 25, 2019 City Council meeting, but questioned what factors caused Mayor Dixon to make a motion for reconsideration. Mayor Dixon briefly highlighted the reasons the item is being reconsidered. Pete Swift took issue with Council reconsidering this item and questioned the concerns regarding the proposed dock plan. Motion by Mayor Dixon, seconded by Council Member Brenner, to reconsider the item and bring it back at the June 25, 2019 City Council meeting. The motion carried 5-1-1, with Mayor Pro Tem O'Neill abstaining and Council Member Muldoon voting no. XV. PUBLIC COMMENTS ON NON AGENDA ITEMS Susan Skinner apologized to the City Council and City Attorney Harp for stating the City violated the Brown Act relative to Closed Session items, but asked Council to work towards having more transparency in the future. Ken Rawson expressed concerns about electric bicycles speeding on the boardwalk and asked Council to increase Police presence in the area. Joe Angelo requested that electric bicycles be prohibited on the boardwalk and Police foot patrol be increased on the boardwalk. Randall English thanked the City for working with the Newport Bay Conservancy to support environmental education programs. Brenda Martin expressed concerns regarding traffic on the boardwalk and the proposed updates to the STL regulations. XVI. PUBLIC HEARINGS 21. Resolution No. 2019-54: Fiscal Year 2019-2020 Budget Adoption; City Budget Hearing; Recommendations from the Finance Committee; and Proposed Budget Revision Items [100-2019] Volume 64 - Page 126 City of Newport Beach Study Session and Regular Meeting June 11, 2019 Finance Director Matusiewicz and Budget Manager Giangrande utilized a PowerPoint presentation to discuss budget principles, highlight the positive aspects of the proposed budget, review the budget development timeline, proposed summary, General Fund sources, how it is utilized in conjunction with the budget, unrestricted resources, full-time and part-time position counts, and staff recommendations. Mayor Dixon opened the public hearing. Jim Mosher believed the salaries listed in the proposed budget are only estimates and indicated the exact salary amounts can be found with the State Controller and Transparent California (publicpay.ca.gov). He questioned if the budget allows staff to provide financial support to other merchant associations other than the two BIDS, and if there is funding available to address the homeless issues. Mario Marovic discussed concerns regarding inexperienced landlords, short term rentals, and homelessness, and requested Council reallocate funds to address these issues. Hearing no further testimony, Mayor Dixon closed the public hearing. Mayor Pro Tem O'Neill requested that Line Item 4 (Orange County River Park Contribution for Video Production) on the Budget Revisions list be removed and be encouraged to request funding through the City's grant program. Mayor Dixon utilized a PowerPoint presentation to explain that, due to the increase in crime and traffic in the City, she is requesting to add two Traffic Division Police Officers to the proposed budget. Motion by Mayor Dixon, seconded by Council Member Brenner, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) receive and file the .Finance Committee's budget recommendations; c) approve the Budget Revisions, with the removal of Line Item 4, and include it in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution No. 2019-54, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2019-20 Fiscal Year, as amended by the Budget Revisions and the addition of two Traffic Division Police Officers; and d) file the City Manager's recommended City position classifications and their salary ranges with Resolution No. 2019-54. Mayor Pro Tem O'Neill utilized slides to explain why he does not support adding any additional positions to the proposed budget and believed, if Police Chief Lewis wanted additional positions, he would request them. In response to Council questions, Police Chief Lewis discussed current Police staffing levels, salaries, benefit costs, the City's unfunded pension liability, calls for service, the reduction in crime over the past two years, and current traffic trends in the City. Substitute motion by Mayor Pro Tem O'Neill, seconded by Council Member Muldoon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) receive and file the Finance Committee's budget recommendations; c) approve the Budget Revisions, with the removal of Line Item 4, and include it in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution No. 2019-54, AResolution of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2019-20 Fiscal Year, as amended by the Budget Revisions; and d) file the City Manager's recommended City position classifications and their salary ranges with Resolution No. 2019-54. Volume 64 - Page 127 City of Newport Beach Study Session and Regular Meeting June 11, 2019 Council Member Muldoon assured the public that Newport Beach is a safe place to live, believed the City's crime statistics cannot be compared with other cities since some cities do not report all crimes, and suggested only adding one Police Officer to the proposed budget, but allowing the Police Chief to decide where that position needs to be placed in the department. Mayor Pro Tem O'Neill indicated he would not support additional personnel at this time. Discussion ensued between Council and staff that included employee attrition rates, recruiting efforts, retirements, the lack of officers available to enforce rules and regulations, the increase of activity with summer coming, and the changing service demand areas. Mayor Pro Tem O'Neill discussed the amount of time and effort that went into developing the proposed budget, noted it is supported by the City Manager and Police Chief, believed no amount of officers could have prevented the recent homicides that occurred in the City, and indicated he would not support adding any additional Police Officers. The substitute motion failed 3-4, with Council Member Muldoon, Council Member Herdman, Council Member Brenner, and Mayor Dixon voting no. Mayor Dixon concurred with Mayor Pro Tem O'Neill about the amount of work that goes into preparing the budget, reiterated her thoughts on why more Police Officer positions are needed, and agreed to the compromise by Council Member Muldoon to add one additional officer, at the Police Chiefs discretion. Mayor Pro Tem O'Neill suggested approving staffs recommendation, with the removal of Line Item 4, and direct staff to bring back the request to hire one Police Officer. Substitute motion by Council Member Muldoon, seconded by Council Member Brenner, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) receive and file the Finance Committee's budget recommendations; c) approve the Budget Revisions, with the removal of Item 4, and include it in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution No. 2019-54, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2019-20 Fiscal Year, as amended by the approved Budget Revisions; d) file the City Manager's recommended list of City position classifications and their salary ranges with Resolution No. 2019-54; and e) direct staff to bring back a staff report relative to the hiring of one Police Officer. The motion carried unanimously. 22. Ordinance No. 2019-10: Introduction of an Ordinance Amending the Zoning Code to Rename the Multiple Residential Detached (RM -D) and Include a Reference to Allow for Attached Units (PA2019-065) [100-2019] Community Development Director Jurjis reported the reason for the code amendment is due to the current code only allowing detached units and not attached units. Mayor Dixon opened the public hearing. Anastasios Nikolaou expressed support for amending the zoning code since his property is impacted by the current code. Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Council Member Herdman, seconded by Council Member Duffield, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 under Class 5 (Minor Alterations in Land Use Limitations) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and b) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2019-10, An Ordinance of the City Council Volume 64 - Page 128 City of Newport Beach Study Session and Regular Meeting June 11, 2019 of the City of Newport Beach, California, Amending the Newport Beach Municipal Code to Rename the Multiple Residential Detached (RM -D) Zoning District to Medium Density Residential (RMD) and Include Reference to Attached Dwelling Units (PA2019-065), and pass to second reading on June 25, 2019. The motion carried unanimously. 21. Resolution No. 2019-55: Authorization to Issue Obligations by the California Statewide Development Authority to Benefit the Harbor Pointe Senior Living Project [100-2019) Finance Director Matusiewicz provided the staff report, confirmed the City is not responsible for payment of the bonds, and explained the City's involvement. Mayor Dixon opened the public hearing. Jim Mosher believed this is a gift to the private investors since it would allow them to invest tax free, and questioned whether the project is a residential project and subject to Greenlight (Charter Section 423). Community Development Director Jurjis indicated this project meets the General Plan requirements and is not subject to Greenlight. Hearing no further testimony, Mayor Dixon closed the public hearing. Mayor Pro Tem O'Neill emphasized that the bonds are not a gift and pointed out the City had nothing to do with the passing of the Tax Equity and Fiscal Responsibility Act (TEFRA). Motion by Mayor Pro Tem O'Neill, seconded by Council Member Duffield, to a) find the approval of this resolution is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, find the approval of this resolution is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment; and b) adopt Resolution No. 2019-55, A Resolution of the City Council of the City of Newport Beach, California, Approving the Issuance, Sale and Delivery of Multifamily Housing Revenue Bonds of the California Statewide Communities Development Authority for Harbor Pointe Senior Living. The motion carried unanimously. XVII. MOTION FOR RECONSIDERATION - None XVIII. ADJOURNMENT - 9:24 p.m. The agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on June 6, 2019, at 4:00 p.m. Mane B. Dixon Mayor Volume 64 - Page 129