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HomeMy WebLinkAbout01/14/2020 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting January 14, 2020 I. ROLL CALL - 4:00 p.m. Present: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon H. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Proclamation to Stanbridge University Recognizing Their Recent Student Volunteer Activities within Newport Beach as Part of Their "Roots for Change" Native Tree and Bush Planting Initiative Mayor O'Neill read the proclamation and presented it to Mary Aileen Matheis, Vice President Irvine Ranch Water District (IRWD) and volunteer Chair of the Board of Directors for Shadetree Partnership; Jenny Roney, Human Resources Director for the Irvine Ranch Water District (IRWD) and Volunteer Board of Directors Member for Shadetree Partnership; Yasith Weerasuriya, Stanbridge University President; and Lisa Caraway, Stanbridge University outREACH/Student and Alumni Affairs Officer, who expressed their appreciation to the City and Arborist Pekar and announced that another tree planting event is scheduled for March 8, 2020, at Castaways Park. SS3. Update on State Housing Mandate — Regional Housing Needs Allocation (RHNA) and Proposed Action Plan Community Development Director Jurjis and Deputy Community Development Director Campbell utilized a presentation to discuss the background of the RHNA number increasing from 2,751 to 4,832, the Southern California Association of Governments (SCAG) process, final numbers to be set by October 2020, the Housing Element process, challenges, an action plan that challenges the RHNA number but attempts to comply with requirements, previous meetings with State Legislators, City Charter Section 423, State penalties under AB 101, and housing accomplishments from 2013 to 2018. Mayor O'Neill believed Charter Section 423 should not be amended, and requested that everyone share the seriousness of the issue. He suggested that staff 1) utilize the legal and appeal processes to attempt to reduce the RHNA number, 2) ask for more time and fewer units, and 3) initially follow the 2006 General Plan Update (GPU) model. He discussed the number of housing units currently in the City, agreed with staff's suggestion to focus on updating the Housing Element with the assurance that, once the RHNA number is stabilized, the GPU will continue with a larger advisory committee, believed the current housing issue should be reviewed by a smaller committee with specific expertise, received a breakdown of affordable housing by income, questioned the use of incentives, whether floating units could count towards the RHNA number, and whether units exceeding the previous RHNA number of five could be counted toward the new allocation, noted recent court opinions do not help the home rule provision in the California Constitution, stated Council needs to discuss how units are counted, determine if Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) count, asked if staff looked at each neighborhood for State or Federal laws or regulations that would prohibit"the kind of growth proposed by the California Department of Housing and Community Development (HCD) and SCAG. In response to Mayor O'Neill's question, Deputy Community Development Director Campbell addressed the Request for Proposals (RFP) for a consultant whose scope of work centers around the Housing, Land Use and Circulation Elements, and discussed the timeline. Mayor O'Neill suggested, because of time constraints, the responses may need to bypass the steering committee and come directly before the City Council, but assured everyone that the GPU process will continue to be led by the committee. Community Development Director Jurjis reported that staff has not begun Volume 64 - Page 270 City of Newport Beach Study Session and Regular Meeting January 14, 2020 cataloging issues such as the coastal zone, Federal Emergency Management Agency (FEMA) flood maps, fire severity zones, and liquefaction or landslide areas. Mayor O'Neill believed this work should be done within the next 30 days since the City needs justifications that are unique to the City to challenge the RHNA allocation. Council Member Herdman noted there is currently no judicial remedy and Statewide housing needs will probably supersede a City Charter argument. As suggested in a meeting he had with David Tanner, he believed that the imbalance between new housing laws and the City's General Plan places Newport Beach in a potentially dangerous situation in the event of a natural disaster or other emergency. He suggested the City declare a State of Emergency and notify the State that the City is temporarily placing a hold on implementing State mandates for population growth until the threat to public safety is no longer considered an emergency. Council Member Dixon noted California's population growth has been the lowest in 80-90 years and believed the population projections should be challenged. She inquired about the number of housing projects the California Coastal Commission (CCC) or other agencies have rejected in the last five years and what legal arguments other cities have proposed. City Attorney Harp indicated court opinions, related to charter cities and the home rule doctrine, have been issued and believed the City would benefit from teaming with other jurisdictions, especially coastal cities. Council Member Dixon noted the discussion has not mentioned schools, transportation, infrastructure, and water needed to support the population growth. She thanked the steering committee members for their service. Community Development Director Jurjis reported the consultant prepared a heat map depicting the locations where the community is willing to accept additional housing units. Council Member Dixon emphasized that the City needs to be active in monitoring housing legislation, speaking on housing bills in Sacramento, and mobilizing the community. In response to Mayor Pro Tem Avery's questions, Community Development Director Jurjis indicated Marin County's RHNA numbers are low and its Housing Element is due in 2023. Most cities submit their Housing Elements on eight-year cycles, but some cities have four-year cycles. He noted that Santa Ana's RHNA number is approximately 6,000, explained that Riverside County's argument is that, since jobs and infrastructure are located on the coast, housing units should be located near the jobs and roads. Mayor Pro Tem Avery believed the State has to do something to provide affordable housing for people, but the burden on Southern California, Newport Beach in particular, is punitive. Council Member Brenner believed the multipronged approach is the City's only hope and that Council needs to emphasize traffic. She advised that Mayor O'Neill had asked her to arrange a meeting with Stop Polluting Our Newport (SPON) and Line in the Sand, which resulted in everyone being on the same page. Council Member Duffield indicated that he moved his factories out of Newport Beach in 1998 because of the South Coast Air Quality Management District (AQMD) mandates. He pointed out that manufacturers and jobs are inland, not on the coast, and believed jobs in coastal areas are service-oriented. Council Member Muldoon stated that SPON leadership supported the local assembly woman who supported the housing legislation which resulted in the RHNA allocation. He noted the community is dealing with an imbalance and asked SPON to assist in returning balance to the State. Mayor O'Neill suggested that the City Attorney's Office continue its legal analysis and prepare for an appeal, seek assistance from the League of California Cities (LCC), maintain good relationships with HCD and SLAG, and explore utilizing the services of lobbyists. He reiterated that the Housing Element Update Advisory Committee (Item 20) should have members with specific expertise, discussed suggested categories, and emphasized that Council still needs to do everything it can to at least try to comply with requirements to submit a Housing Element. Volume 64 - Page 271 City of Newport Beach Study Session and Regular Meeting January 14, 2020 Council Member Dixon recommended condensing the timeframe for the Housing Element Update Advisory Committee application period and selection process, suggested that staff may need to determine how much acreage is available for development in the City, and advised that she is the incoming Chair of the Association of California Cities -Orange County (ACC -OC), will take office on April 1, 2020, and will be in Sacramento with the ACC -OC in a couple of weeks. Nancy Gardner believed that, if the City cannot obtain an extension to the Housing Element deadline, the deadline should not be the driving force because getting the Housing Element right is important. Further, if the City is showing good faith and making every effort, she did not believe the State would impose the harshest penalties. She added that it could be helpful to have input from the environmental community. Allan Beek indicated that construction costs do not make housing affordable. It is the competition of people wanting to live near the beach. He suggested imposing an employment tax to move businesses out and housing into the City. He believed that working cooperatively is the way to achieve housing. Dennis Baker suggested qualifications for the Housing Element Update Advisory Committee and believed the Chair would have to be strong, but collaborative and available. Jean Watt, SPON, agreed with the need to be cooperative and applauded Council for its thorough discussion. She believed that the ideal approach is to reduce the RHNA number, obtain credit for all the previously constructed housing, agree on the number of new units, convert commercial buildings to residential, and learn how to obtain subsidies or philanthropy that will incentivize builders to do the conversions. She indicated that SPON supports the formation of the Housing Element Update Advisory Committee, but does not want a housing crisis to hijack other parts of the General Plan. Further, they want to save Banning Ranch and believed the City should also get credit for uncounted subleased units that charge low rents. Charles Klobe thanked the steering committee and staff for their work on the first phase of the General Plan outreach process. He believed that State mandates are unreasonable, but the City is in an untenable position. He expressed support for the proposed multipronged approach, the formation of the committee, and restarting the outreach process once there is a lull in the RHNA process. He asked audience members to stand to show their support for his comments. Denys Oberman agreed with the multipronged approach and believed the City needs data about what is available without degrading current residential zoning areas and to talk to someone who understands the economics surrounding affordable housing. Becky Adams thanked Council for all their work and expressed concerns about the number of rental units located above garages. She recommended that the City attempt to comply so that it is not fined, but suggested that the construction of housing not be rushed since laws may change. Linda Watkins noted there are no simple solutions, advocated for collaboration, extraordinary leadership, and expertise, and believed the General Plan process should be managed differently than when it was reviewed in 2006. Nancy Scarbrough thanked the steering committee and staff for their work on the General Plan outreach meetings. She noted that most residents will likely be unhappy with the RHNA numbers, but stated their collective anger should be directed at State representatives, not Council. She urged the community to demonstrate its dissatisfaction through its votes. She asked if ADUs and JADUs can be counted toward the RHNA numbers and whether units approved in the prior cycle can be counted. Terry Welsh, President of the Banning Ranch Conservancy, noted they recently received a $50 million donation towards the purchase of Banning Ranch and discussed the Trust for Public Land's negotiations to acquire Banning Ranch. He believed Council should plan for future housing with the idea that Banning Ranch will be open space. Volume 64 - Page 272 City of Newport Beach Study Session and Regular Meeting January 14, 2020 Steve Ray, Executive Director of Banning Ranch Conservancy, reviewed Banning Ranch Conservancy's mission and cautioned Council not to include Banning Ranch in its consideration of housing alternatives since negotiations for the acquisition of Banning Ranch are underway. Jim Mosher urged Council to push back against the RHNA numbers, seek delay, and not give up on home rule arguments. He believed growth is incompatible with a sustainable future and agreed that growth has slowed down in California. He questioned why SLAG is asking that more housing be built when there may not be people to occupy them. Larry Tucker supported a political strategy over a legal strategy to reduce the RHNA numbers. He believed the Housing Element Update Advisory Committee should focus on sites that could accommodate housing, identify and prioritize as many sites as possible, identify as many units as possible until the issue of credits is clarified or RHNA requirements are reduced, have expertise in real estate development and planning, and include resident representation. He cautioned that building heights may need to be increased to accommodate units and to improve the aesthetics of projects. David Tanner believed that the impact of housing laws enacted since 2017 will be greater than the impact of the RHNA numbers, the City needs to know the impact of housing laws, especially those in which the City has no jurisdiction, needs data to determine the effect on regional infrastructure, health, and safety, and should proceed with working with other cities. He supported seeking an extension of the Housing Element deadline. If the Housing Element fully complies with laws, the City can advise HCD that it is contingent upon the State mitigating the impacts from State laws and suggested that a committee look at the legal aspects with other cities. He questioned whether cities have been afforded due process and whether these laws are a regulatory taking. Hoiyin Ip thanked the City for its hard work regarding the RHNA numbers and suggested the City not mention its limited water supply in order to avoid privatized water. Mayor O'Neill stated that staff needs to investigate zoning issues for permanent supportive housing as part of very -low-income housing. In response to his question, Community Development Director Jurjis reported that the Vivante Senior Housing Project would count as housing units, but the Harbor Pointe Senior Living Project would not count since it is similar to a hospital. In response to Council Member Muldoon's question, Community Development Director Jurjis reported a limited number of granny flats have been permitted, but others are currently considered illegal units. However, if the City legalizes, the units may be able to be counted. Council Member Muldoon proposed waiving past fees and potential citations, and temporarily waiving all applications going forward as an incentive for property owners to begin the permitting process. He stated he could even support staff knocking on doors to promote the program and implementing grace periods. He noted that occupants of granny flats already use City services and streets. In response to Council Member Dixon's question, Deputy Community Development Director Campbell advised that an inclusion provision, which was removed from the Subdivision Code, could require projects over a certain size to include a percentage of affordable housing. Council Member Dixon suggested that Council explore it again. Council Member Herdman stated that there are units being rented out at affordable housing rates rather than market rates, and inquired whether staff could find out how much rent is being charged and possibly find more ADUs or low-income housing. Council Member Brenner indicated that she has been working with Community Development Director Jurjis regarding bachelor units or studios in Corona del Mar. She estimated that there are at least 300 units located north of the highway, the units would not increase the number of people in the community because the renters are already there, proposed utilizing the Corona del Mar Residents Association to identify these properties, and encourage property owners to register the units whether or not they are rented so they can be included in the RHNA count. She believed the Governor and Legislature should develop tax incentives for people to live close to their work and Volume 64 - Page 273 City of Newport Beach Study Session and Regular Meeting January 14, 2020 for businesses to hire people who live near the businesses, and emphasized that a regional solution for transportation is also needed. In response to City Attorney Harp's question, Mayor O'Neill indicated the Housing Element Update Advisory Committee should be composed of nine voting members and an ex officio member, all of whom are to be residents of the City. He noted that the only change to the timeframes is a one-week turnaround for applications. III. PUBLIC COMMENTS Lanae O'Shields, Public Affairs Manager for Southern California Gas Company, reported many State agencies are exploring legislation to limit energy choice and mandate fully electrified homes and businesses. She expressed the opinion that electrification of homes and businesses is challenging because of affordability, lack of storage, reliability, and customer choice. She encouraged the Council to adopt a resolution that protects customer choice, local control, continued innovation, and affordability. IV. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Ashley Lauren Watts v. Christine Maroney and Monica Aguilar USDC, Central District, Case No. 8:17-cv-01099-AG (SKx) B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 20302 Riverside Drive, Newport Beach, CA 92660 APN: 439-251-05 Agency Negotiators: Grace K. Leung, City Manager Carol Jacobs, Assistant City Manager Jon Lewis, Chief of Police Dennis Birch, Assistant Chief of Police Negotiating Parties: Carole Brown Rich and Kathy Leonard Under Negotiation: Instruct negotiators as to price and terms of payment. V. RECESSED - 6:03 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon VIII. CLOSED SESSION REPORT - None IX. INVOCATION - Reverend Paul E. Capetz, Christ Church by the Sea X. PLEDGE OF ALLEGIANCE - Council Member Muldoon XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Herdman: • Displayed a slide announcing his Town Hall Meeting on January 15, 2020 at 6:00 p.m. Volume 64 - Page 274 City of Newport Beach Study Session and Regular Meeting January 14, 2020 • Announced that the Orange County Historical Commission recognized the Balboa Island Museum • Advised that the Orange County Mosquito and Vector Control District is forming a new assessment district to raise funds to combat the Aedes mosquito (ankle biter) Council Member Dixon: • In response to concerns regarding the impact of AB 5 on employment/independent contracting, City Manager Leung indicated the topic will be discussed during the Planning Session if the analysis is ready Council Member Brenner: • Attended the Speak Up Newport meeting regarding homelessness and commended Homeless Coordinator Basmaciyan for her presentation • Displayed a slide announcing a mental health forum scheduled for January 29, 2020 at 6:30 p.m. in the Community Room ,Council Member Duffield: • Attended a Watershed Executive Committee meeting and a Water Quality/Coastal Tidelands Committee meeting with Council Member Herdman Mayor Pro Tem Avery: • Displayed a slide to announce that a Council study session regarding pedestrian/bicycle access in the Newport Heights area will be held on January 28, 2020 Mayor O'Neill: • Displayed slides of new signage encouraging donations to charities rather than panhandlers and announcements regarding the Planning Session on January 25, 2020 at 9:00 a.m.; and the Newport Beach Foundation's application deadline for the Distinguished Citizen spring class • Announced his appointment as Vice Chair of the Transportation Corridor Agencies (TCA) San Joaquin Board XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of Resolution Supporting Balanced Energy Solutions and Maintaining Local Control of Energy Solutions as California Transitions to a Clean Energy Future (Muldoon) It was the consensus of the City Council to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 14, Mayor O'Neill amended his appointment on the Aviation Committee to appoint Council Member Dixon as the Vice Chair. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the December 10, 2019 City Council Meeting [100-2020] 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. RESOLUTIONS FOR ADOPTION 3. Resolution No. 2020-1: Updating the List of Designated Employees for 2020 Under the City's Conflict of Interest Code [100-2020] Volume 64 - Page 275 City of Newport Beach Study Session and Regular Meeting January 14, 2020 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 amended Resolution No. 2020-1, A Resolution of the City Council of the City of Newport Beach, California, Adopting an Updated Designated Employees List for 2020. 4. Resolution No. 2020-2: Adjusting the Salary Schedule for the Positions of Assistant City Clerk and Budget Manager [100-20201 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. 2020-2, A Resolution of the City Council of the City of Newport Beach, California, Amending the Salary Schedule for the Positions of Assistant City Clerk and Budget Manager. 5. Pulled from the Consent Calendar 6. Resolution No. 2020-4: Authorizing Submittal of a Grant Funding Application to the Orange County Transportation Authority for West Coast Highway and Superior Ave./Balboa Blvd. Intersection Improvement (C-8618-1) [38/100-20201 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. 2020-4, A Resolution of the City Council of the City of Newport Beach, California, Authorizing and Approving the Submittal of a Funding Application for an Intersection Capacity Enhancement Project to the Orange County Transportation Authority for Funding Under the Comprehensive Transportation Funding Program. Council Member Muldoon recused himself due to business interest conflicts. 7. Resolution No. 2020-5: Authorizing the Submittal of a Funding Application to the Orange County Transportation Authority for the Balboa Island/Corona del Mar Area Microtransit Feasibility Study (C-8619-1) [38/100-2020] 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. 2020-5, A Resolution of the City Council of the City of Newport Beach, California, Authorizing and Approving Submittal of a Funding Application for the Balboa Island/Corona del Mar Microtransit Feasibility Study Project to the Orange County Transportation Authority for Funding Under the Project V Community -Based Transit/ Circulators Program; and c) Authorize the City Manager to accept contribution funds from Balboa Island Marketing, Inc., the Balboa Island Improvement Association, as well as possible Districts 5 and 6 City Council Discretionary funds, for use as required Local Match funds upon award of Orange County Transportation Authority Project V grant. Council Member Muldoon recused himself due to business interest conflicts. CONTRACTS AND AGREEMENTS 8. MacArthur Boulevard and University Drive Pavement Rehabilitation - Notice of Completion for Contract No. 7183-2 (181123) [381100-2020] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. Volume 64 - Page 276 City of Newport Beach Study Session and Regular Meeting January 14, 2020 9. Concrete Street Pavement Reconstruction (Anade Avenue, Montero Avenue, Alvarado Place, and 6th Street) — Award of Contract No. 7184-2 (18R21) [381100-2020] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(b)(c) Class 1, (maintenance of existing public facilities involving negligible or no expansion of use), of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 7184-2 to Aramexx Construction, for the total bid price of $1,369,708.00, and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $137,000.00 (approximately 10 percent of total bid) to cover the cost of unforeseen work not included in the original contract; and e) Approve Budget Amendment No. 20-025 transferring appropriations of $185,776.70 from the Bison Avenue Pavement Rehabilitation Project (No. 12201-980000-19R21) to the Concrete Street Repair Project (No. 12201-980000-181121) within the Measure M fund. 10. Approval of Amendment No. Four to Professional Services Agreement with Stantec Consulting Services, Inc. (Stantec) for the Arches Diversion Project (C-8279-1) [381100-2020] 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 Amendment No. Four to Professional Services Agreement with Stantec Consulting Services, Inc. for design of the Arches Diversion Project to reflect additional services and to increase the not -to -exceed contract amount by $35,200 for a total not -to -exceed amount of $347,386, and authorize the Mayor and City Clerk to execute the agreements. 11. Amendment to the Professional Services Agreement with Newport Beach & Company for Video Production and Government Access Channel Management (C-8581-1) [381100-2020] 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) Authorize a waiver of Council Policy F-14 in regard to re -bidding NBTV Video Production and Channel Management and award a single -source contract to Newport Beach & Company by amending its existing contract; and c) Execute Amendment No. 1 to the Professional Services Agreement with Newport Beach & Company for Management of NBTV Programming and Operations, which extends the term by one year and adds $117,208.44 for a total not -to -exceed amount of $288,023.24. 12. Lease Agreement with West Point Investment Corporation to Rent Office Space at the Balboa Yacht Basin Located at 829 Harbor Island Drive (C -3090E) [38/100-2020] a) Find this activity 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) Authorize the City Manager and City Clerk to execute a five-year Lease Agreement for use of office space located at the City -owned Balboa Yacht Basin, located at 829 Harbor Island Drive, in a form substantially similar to the agreement attached to the staff report. MISCELLANEOUS 13. Acceptance of a Hoag Memorial Hospital Presbyterian Community Benefit Program Grant for the Newport Beach -Surfer Awareness in Lifesaving Techniques Program [100-2020] 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 277 City of Newport Beach Study Session and Regular Meeting January 14, 2020 b) Accept the Hoag Memorial Hospital Presbyterian Community Benefit Program grant funding of $15,000 to be used in support of the Fire Department's Newport Beach—Surfer Awareness in Lifesaving Techniques (NB -SALT) program; and c) Approve Budget Amendment No. 20-027 to increase revenue estimates by $15,000 and increase expenditure appropriations by $15,000 in Fire Department, Lifeguard Operations NB -SALT Program. 14. Annual Mayoral Appointments [241100-2020] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Confirm Mayor Will O'Neill's appointments under City Council Policy A-2, as provided in the staff report and with the Aviation Committee Vice Chair changing from Mayor Pro Tem Avery to Council Member Dixon. 15. Newport Beach Wine and Food Festival Request for Waiver of City Council Policy B-13 [100- 2020] Continue to a future City Council meeting. 16. Pulled from the Consent Calendar 17. Confirm Appointment to the Balboa Village Advisory Committee to Represent the Balboa Village Merchant Association Business Board [24/100-2020] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Confirm Mayor Will O'Neill's BVAC appointment of Kelly Carlson to represent the Balboa Village Merchant Association Business Board for a term that expires on December 31, 2020. Motion by Mayor Pro Tem Avery, seconded by Council Member Muldoon, to approve the Consent Calendar, except the items removed (Items 5 and '16); and noting the recusals by Council Member Muldoon on Items 6 and 7, and the continuance of Item 15 and amendments to Items 1, 3 and 14. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 5. Resolution No. 2020-3: Initiation of Zoning Code and LCP Amendments Related to State Mandated Regulations for ADU and JADU Regulations (PA2019-248) [100-2020] Mayor Pro Tem Avery recused himself due to a real property interest conflicts. Community Development Director Jurjis reported the intent of the item is to update the Municipal Code to comply with State law. Principal Planner Murillo utilized a presentation to define ADUs and JADUs, and summarize changes to development standards. In response to Council questions, Principal Planner Murillo advised that the regulations became effective January 1, 2020, and reported that staff is preparing the modifications and will present them to the Planning Commission during a public hearing and bring the item back to the City Council. Council Member Dixon noted the traffic and parking problems on Balboa Island during high season because there are no requirements for garage parking and reported that three State laws have been passed during her tenure on Council that tell cities how to regulate housing and land use. She indicated that ADUs should remain on the watch list. David Tanner asked about the effect of the new ordinances on short-term rentals and hotels, and if there are any plans to implement requirements beyond State compliance. Volume 64 - Page 278 City of Newport Beach Study Session and Regular Meeting January 14, 2020 Charles Klobe asked if the demolition of a single-family home and construction of three market -rate rental units would result in three units that would not count towards the RHNA numbers. Motion by Mayor O'Neill, seconded by Council Member Duffield, to a) determine this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and b) adopt Resolution No. 2020-3, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20 Entitled "Planning and Zoning" and Title 21 Entitled "Local Coastal Program Implementation Plan" of the City of Newport Beach Municipal Code Related to State Mandated Regulations of Accessory Dwelling and Junior Accessory Dwelling Units (PA2019-248). With Council Member Avery recusing himself, the motion carried 6-0-1. 16. Update on Addressing Homelessness [100-20201 Assistant City Manager Jacobs provided an update regarding the new panhandling signs and the addition of homeless resources and information to the website. She reported that staff is planning monthly forums or seminars on homelessness, seeking additional partnerships, and engaging with the County and its system of care. She indicated there have been a number of success stories, the goal is to house people, and staff has created an internal rapid response team comprised of all City departments. City Manager Leung added that staff is focusing on individual assistance, shelter space, and permanent supportive housing, and noted that Council will discuss homelessness in more detail during the Planning Session. She assured everyone that talks about a regional solution continue among cities. Council Member Dixon noted CityNet and staff have completed an inventory of the homeless in the community. Council Member Brenner indicated that the panhandling sign is phrased as delicately as possible, and the more the City can do to encourage people to donate to organizations that help people, the more panhandling will decrease. Mayor O'Neill indicated the Speak Up Newport presentation on homelessness can be viewed on NBTV Without objection, the item was received and filed. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jose Trinidad Castaneda, Climate Action Campaign, shared the purpose of Community Choice Energy and its ability to help the City fulfill its emission reduction goals and reduce energy rates, and to provide more local control over the investment of revenue and energy savings. He stated that Council or individual Council Members can respond to the City of Irvine's letter in order to receive additional information. Mayor O'Neill noted that Council is interested in Community Choice Energy, but the details have to be evaluated. Ryan Reza Farsai expressed concern regarding the modern-day civil war that is taking place in the country and construction of housing on dirty property. Tim Stoaks, President of the Friends of Newport Beach Animal Shelter (FONBAS), reported they are in the process of purchasing a building for the animal shelter that would be gifted to the City and indicated they aspire to fiscally support the animal shelter. XVIII. CURRENT BUSINESS 18. Request to Waive City Council Policy L-2, Driveway Approach, at 400 40th Street — Encroachment Permit No. N2019-0620 [100-20201 Kevin Snow and Kim Kierstead, applicants/property owners, thanked Council and staff for visiting the site, agreed with staffs recommendation to waive City Council Policy L-2, and requested that Council consider the requirement for an additional off-street parking space as an option. They noted that the Volume 64 - Page 279 City of Newport Beach Study Session and Regular Meeting January 14, 2020 curb is painted red, therefore, will not cause the loss of on -street parking, believed there is no reason to require five parking spaces instead of four, and expressed concern that the additional on -street parking space will cause the loss of 325 square feet of ground -floor living space, which is very important to the concept of aging in place. In response to Council questions, Mr. Snow advised that he would consider the parking space in the design of the project, however, if the space did not work with the design, it would not be part of the project. He confirmed that each unit will have two parking spaces and the structure will be set back five feet from the rear property line, so a very small car or golf cart can park at the rear of the property. City Traffic Engineer Brine confirmed that the planned curb cut is along a red curb. Motion by Council Member Muldoon, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) waive City Council Policy L-2 and allow a new driveway on Marcus Avenue at 400 40th Street on Newport Island. The motion carried unanimously. 19. Ordinance No. 2020-1: Amending Chapter 12.24 of the Newport Beach Municipal Code Regarding Speed Limits [100-2020] Motion by Council Member Muldoon, seconded by Council Member Duffield, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) waive reading, read by title only, introduce Ordinance No. 2020-1, An Ordinance of the City Council of the City of Newport Beach, California, Amending Sections of Chapter 12.24 of the Newport Beach Municipal Code Regarding Increasing and Decreasing State Speed Limits, and pass to second reading on January 28, 2020. The motion carried unanimously. 20. Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee [100-2020] Mayor O'Neill summarized the study session discussion and read the revised Housing Element Update Advisory Committee categories. In response to Charles Klobe's question, Mayor O'Neill indicated that amending City Charter Section 423 is not included in the resolution. Council Member Dixon requested the motion include direction to staff to return with a formal resolution opposing SCAG's RHNA methodology. Motion by Mayor O'Neill, seconded by Council Member Herdman, to a) determine the recommended actions 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) direct staff to file an appeal to SCAG regarding the RHNA methodology; c) adopt amended Resolution No. 2020-6, A Resolution of the City Council of the City of Newport Beach, California, Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee; d) direct staff to move forward with the Housing Action Plan as discussed during the Study Session; and e) direct staff to return with a resolution opposing SCAG's RHNA methodology. The motion carried unanimously. Volume 64 - Page 280 City of Newport Beach Study Session and Regular Meeting January 14, 2020 V. Q 21. Appointment to the Visit Newport Beach, Inc. (VNB) Executive Committee [24/100-20201 Charles Klobe expressed support for the appointment of Jim Mosher. City Clerk Brown read the ballot votes as follows: Jim Mosher - Joy Brenner, Brad Avery Sharon Wood - Diane Dixon, Duffy Duffield, Jeff Herdman, Kevin Muldoon, Will O'Neill City Clerk Brown announced that Sharon Wood is appointed to the VNB Executive Committee. At Mayor O'Neill's request, City Attorney Harp explained Council Policy A-2 regarding service on only one Board, Commission or Committee, adding that he did not believe Ms. Wood's service on the Civil Service Board and the VNB Executive Committee would raise a conflict. Motion by Mayor Pro Tem Avery, seconded by Mayor O'Neill, to waive City Council Policy A-2 relative to serving on only one Board, Commission or Committee at a time since Sharon Wood currently sits on the Civil Service Board. With Council Member Herdman voting no, the motion carried 6-1. City Manager Leung introduced Public Information Manager John Pope. MOTION FOR RECONSIDERATION - None ADJOURNMENT - 8:00 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 January 9, 2020, at 4:00 p.m. 46M;2k��- Leilani I. Brown City Clerk �' Will O'Neill Mayor Volume 64 - Page 281