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HomeMy WebLinkAbout01 - Minutes - AmendedFebruary 25, 2020 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Minutes Study Session and Regular Meeting February 11, 2020 I. ROLL CALL - 5:00 p.m. II. 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 SSI. Clarification of Items on the Consent Calendar Regarding Item 7 (Ordinance No. 2020-5 — Harbor Code), Council Member Dixon clarified that the Harbor Commission will review live- aboard occupancy inommercialmarinas. City Attorney Harp added that the Harbor Commission will also rev ew� commercial uses as part of the Marine Activityies Permit chapter. C, Council Member Muldoon requested an item separate from Item 7 for the Harbor Commission to consider the purview of the City Manager t�w encroaching piers and floats to exist, the notice that must be given, and setbacks. Council Member Herdman noted the Harbormmission's review of Title 17 and hve-aboards took an entire year, and the process provided aTiple opportunity for community input; expressed the opinion that receiving input this late i e process almost subverts the process; and noted that, if someone wanted to spend more ee nights in their boat, there are other options within the harbor to do that. Mayor O'Neill received confirmation from City Attorney Harp that the motion for Item 7 could include a recommendation for the Harbor Commission to look at the pier issue. SS2. Recognition of Jim Mosher for Hours Devoted to City Business Mayor O'Neill and Council Member Brenner read the proclamation and presented it to Jim Mosher, who thanked Council for honoring him and recognizing the value of public input and the value added by everyone who takes the time to provide their input. Mr. Mosher suggested that a better way to recognize public participation is to restore the time limit for public comments to five minutes and the public's ability to remove items from the Consent Calendar. SS3. Consideration of Prohibiting Motorized Uses on the Oceanfront Boardwalk City Clerk Brown recused herself due to real property interest conflicts. Public Works Director Webb and Principal Civil Engineer Sommers utilized a presentation to discuss the Oceanfront Boardwalk Safety Program and other regulations, electric bicycle (e -bike) classifications, emerging technology, summary of allowed and prohibited uses, the Oceanfront Improvement Project, and considerations for discussion. Council Member Dixon remarked that many study sessions have been held on this topic over the years, indicated she would like to hear solutions because enforcement is not having an impact, noted the difficulty in differentiating the classifications of e -bikes, and pointed out that the boardwalk was originally a pedestrian path. Mayor O'Neill indicated he would like to understand what makes an e -bike unique from a regular bicycle in terms of spee4a1fety. Volume 64 - Page 302 City of Newport Beach Study Session and Regular Meeting February 11, 2020 A straw poll found two Council Members supporting Consideration 1, four Council Members supporting Consideration 2, three Council Members supporting Consideration 3, two Council Members supporting Consideration 4, four Council Members supporting the installation of a speed bump or structural change on the boardwalk, one Council Member supporting a pilot program limiting hours of access during the summer, and seven Council Members supporting an increase to the fines. III. PUBLIC COMMENTS Liz McNabb4ek , Assemblywoman Petkrie-Norris' Office, provided legislative updates to City Manager Leung. Peter Beck inquired about the possibility of installing a restroom facility at the Wedge. Colonel Stephen Sharma noted ratepayers pay 10-12 cents/kilowatt--hour for electricity while a nuclear fusion power plant charges 1.2 cents/kilowatt--hour, and suggest �l replacing California's fossil -fuel supply with nuclear fusion supply. IV. CLOSED SESSION - Taken at the end of the meeting V. RECESSED - 6:57 p.m. VI. RECONVENED AT 7:09 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, Councilember Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon VIII. CLOSED SESSION REPORT Ak IN. INVOCATION - Reverend Dr. George Okusi, St. John the Divine Episcopal Church, Costa Mesa ;ouncil X. PLEDGE OF ALLEG NCE - Member Brenner Ir XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON Council Member Herdman: Announced the Aviation Committee's subcommittees are meeting; requirements for boardwalk signage on Balboa Island have been updated; unused news racks are being removed from Marine Avenue; and the water quality in the harbor is as good as it was in the 1950s Council Member Dixon: • Shared Barbara Sloate's letter expressing her gratitude for Council's recognition • Attended SCAG's Regional Transportation Policy meeting • Utilized a slide to indicate ways the public could support Working Wardrobes after its headquarters burned Council Member Brenner: Walked Balboa Island and found the water to be extremely clear Announced efforts to preserve governmental history, historic buildings and sites; and an art exhibit entitled Jungle Junk Critters on display from February 1 to April 30, 2020 at Sherman Library and Gardens Volume 64 - Page 306 City of Newport Beach Study Session and Regular Meeting February 11, 2020 b) Conduct second reading and adopt Ordinance No. 2020-4, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Code Amendment No. CA2019-006 to Amend Title 15 Entitled `Building and Construction" and Title 20 Entitled "Planning and Zoning" of the City of Newport Beach Municipal Code Related to Cottage Preservation (PA2019-181). Ordinance No. 2020-5: Changes to the Newport Beach Municipal Code, Title 17 - Harbor Code [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) Conduct second reading and adopt Ordinance No. 2020-5, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 17 (Harbor Code) and Other Related Provisions of the Newport Beach Municipal Code Making Comprehensive Revisions Including, but not limited to, Updating Definitions, Regulating Marine Sanitation Devices to Protect Against Discharge of Waste in Newport Harbor, Amending Requirements for Mooring Sub- Permits,AddingaProcedure toAllow Mooring Length Exten ns and Modifying and/or Adding Procedures forlssuance of Permits, Appeals/Calls for Revieu1W Revocations, and directing the Harbor Commission to consider commercial uses as partAIII&L Marine Activitt es Permit process, commercial leases, dock encroachments, and City Anluthority to sign leases. Council Member Duffield recused himself on Item 7 AMMiness interest conflicts. RESOLUTIONS FOR ADOPTION S. Resolution No. 2020-15: Amending the August 2020 City Council Regular Meeting Date [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) Adopt Resolution No. 2020-15,Resolution of the City Council of the City of Newport Beach, California, Amending the T�Cetor the August 2020 City Council Regular Meeting. 9. Resolution No. 2020-16: Resolution in Support of Balanced Energy Solutions and Local Control [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) Adopt Resolution No. 2020-16, A Resolution of the City Council of the City of Newport Beach, California, Supporting Balanced Energy Solutions and Maintaining Local Control of Energy Solutions. 10. Resolution No. 2020-17: Correcting Recently Approved Fire Protection Service Water Rates and Charges Established in Resolution No. 2019-103 [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) Adopt Resolution No. 2020-17, A Resolution of the City Council of the City of Newport Beach, California, Establishing and Correcting Fire Protection Service Water Rates and Charges for the 1 -inch, N/ -inch, and 2 -inch Meter, Adopting the Water Rates and Charges for the 2'12 -inch Meter with Phased in Increases and Removing the Water Rates and Charges for the 3/ -inch Meter. Council Member Muldoon voted `ho" on Item 10. 11. Resolution No. 2020-18: Proposed City Council Policy - Offshore Mooring Extensions [100-2020] Continue the item to a future City Council meeting. Volume 64 - Page 308 City of Newport Beach Study Session and Regular Meeting February 11, 2020 XVIII. Municipal Code Related to Hedge Heights in Front Setbacks Abutting Stradas Within Lido Isle (PA2019-132), and pass to second reading on February 25, 2020; and c) adopt Resolution No. 2020- 19, AResolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2019-002 to the California Coastal Commission to Amend Title 21 Entitled `Local Coastal Program Implementation Plan" of the City of Newport Beach Municipal Code Related to Hedge Heights in Front Setbacks Abutting Stradas Within Lido Isle (PA2019-132). With Council Member Dixon recusing herself, the motion carried 6-0. 20. Ordinance No. 2020-8: Amending the Newport Beach Municipal Code for Short Term Lodging [100-2019] Community Development Director Jurjis, License Supervisor Navarrete, and Code Enforcement Officer Contino utilized a presentation to discuss complaints about short-term rentals, citations issued, illegal rental properties, the history of short-term lodg the formation of an ad hoc committee, public outreach, the number of short-term lodging in able cities, recommended updates and enforcement, and resources needed. � AA Council Member Dixon stated that the ad hoc committee received input from property management companies, residents, and staff; noted that District 1 has the most short-term rentals and are welcome in the City; however, with the inception of online rentals, short-term lodging has become burdensome to many neighborhoods stated that the n ber of short-term lodging permits has grown significantly since 2015; clarified that the onance so directed at individuals who are legally or illegally renting their homes for one night; expressed support for the recommendations; assured everyone that the ad hoc committee tried to balance the needs of property management companies, residents, and property owners; indicated that conducting an inspection of each property subject to a permit application may be burdensome for staff, but random inspections may be needed; indicated that a resident reviewed rent a properties on Newport Island and found some properties list more bedrooms for short-term r� s than shown on sales listings; and expressed concern that the revolving door of overnight stays creates havoc, trash, and public safety issues. Council Member Muldoon stated he preferred proactive enforcement versus responding to complaints, the $110,000 in expenses will be recouped through the collection of additional Transient Occupancy Taxes (TOT). In response to his questions, City Attorney Harp, Community Development Director Jurjis, and License Supervisor Navarrete reported that fees may not be collected upfront when a hosting platform is not used, approximately 60 percent of properties use a hosting platform, consultants for the City conduct random audits of properties that do not use a hosting platform, most properties that have been audited are compliant, a percentage of compliant properties cannot be determined at the current time, and the size of exterior signage would be a maximum of two square feet. Council Member Muldoon discussed why he would not support the recommendations for exterior signage and parking. In response to Council Member Herdman's questions, Community Development Director Jurjis and License Supervisor Navarrete indicated the definition of "rent" is contained in the Newport Beach Municipal Code; gross rents collected and other fees, such as late checkout fees, are taxable; and the party that collects the TOT would remit it to the City. Council Member Herdman suggested the ordinance reference the Code section defining rent, taxable items, and nontaxable items. Nancy Gardner stated that the property owner earns money while she pays the price for unruly tenants, encouraged Council to adopt the ordinance because it provides some teeth for enforcement, and believed the ordinance will keep short-term lodging more residential. Volume 64 - Page 312 City of Newport Beach Study Session and Regular Meeting February 11, 2020 Colonel Stephen Sharma indicated the U.S. Army Corps of Engineers can build housing in a month, discussed homeless issues, and noted that people can undergo drastic changes in a month. Larry Robinson believed short-term rentals are changing the culture of Newport Island and the recommendations are not enough, and asked whether staff looked at areas of the City where short- term rentals may be appropriate. Craig Williams stated he bought his Balboa Island property in 2017 to have short-term lodging, meets the guests and limits occupancy to four people, and his neighbors support his management of the property. He expressed concerns about the parking regulation for properties on Balboa Island and requirement for signage. He recommended requiring a window decal instead. Connie Adnoff, Beachview Realty, requested that Council not issue another alcohol license in any of the pier areas, stated she vets her tenants, and believed parking is not as problematic for short-term rentals as long-term rentals. Stacey Wyatt attributed much of the change to Newport Island t short-term rentals, stated that 17 of the 109 residences on Newport Island are short-term rentals, d believed more consideration should be given to the number of permits in close proximity to one a r. Kris Murray, Expedia Group, advised that Expedia Group represents VRBO and Home–Away, encouraged the City to develop a seamless registry portal and system that is available to all short- term lodging platforms, and recommended an effective date of 90 days following final passage of the ordinance. She suggested updating the City's license registry at least once a day and ideally in real- time, and believed the provision requiring platforms tllect the TOT requires voter approval under Proposition 218. - Yolena Tam liked the City's clear delineation of where vacation rentals are allowed, indicated the City's permitting process is cumbersome and archaic, believed the occupancy requirement is reasonable, and indicated she did not support the signage recommendation. Jerry Cruz concurred with comments regarding the changes in quality of life on Newport Island and believed requiring only one parking space is incredibly low. Scott Carpenter, iTrip VacaAMl expressed concern that the ordinance may not address changes in technology, suggested placioise monitors in each unit to assist with enforcement, expressed concern that the signage requirement may impose on the tenants' privacy and safety, and requested clear language be incorporated into the ordinance regarding which fees are taxable and nontaxable. Carmen Rawson stated she has been doing short-term rentals since 1992 and has never heard of a visitor service fee, expressed concern that she would not be in compliance with Section 5.95.045 because the agreement is written between the user and her property management company, recommended telling tenants about the requirements rather than giving them copies of the Newport Beach Municipal Code sections, believed providing a contact name does not make sense if an answering service is used. Ken Rawson indicated he attended all the community meetings and heard concerns about parking, encouraged his neighbors to contact the police with complaints about his properties, and stated he supports the recommendation for one parking space per unit. Craig Batley, Burr White Realty, believed the proposed ordinance is a good start that, with revisions, will improve the City's ability to regulate short-term lodging, Newport Beach manages short-term lodging more effectively than any city in Orange County, asked if the City Attorney's Office could provide a model short-term lodging contract, indicated exterior signage indicating maximum occupancy could result in unnecessary complaints, suggested adjusting the occupancy count for square footage, and believed the requirement to use an answering service is impractical. Volume 64 - Page 313 City of Newport Beach Study Session and Regular Meeting February 11, 2020 In response to Council Member Muldoon's questions, City Attorney Harp advised that the California Coastal Commission may require a coastal development permit or modifications to the Local Coastal Program, and discussed cities rights to regulate things within their police power. Community Development Director Jurjis added that short-term lodging is not permitted in mixed-use zones. Council Member Muldoon believed mixed-use zones make the most sense for short-term lodging and recommended including short-term lodging in R-2 mixed use zone and prioritizing it in the wait list. Council Member Duffield thanked everyone for their involvement and indicated he was was glad the City is doing something. Mayor O'Neill noted the City has good operators that spoke during public comments who represent probably more than half of all short-term rental units, believed the ordinance would make operations harder and more expensive, indicated placing more restrictions on good operators is not appropriate, suggested having more enforcement, expressed opposition to the sign recommendation, and stated the ordinance goes too far. Council Member Dixon indicated multi -unit properties were excluded so they would not turn into hotel alternatives, assured that the ad hoc committee did not want to impose anything burdensome, and questioned the numbers due to the number of vee complaints received and frustrated neighbors. It Council Member Brenner stated the ad hoc committee heard from a lot of people that, when the police were called, they gave warnings rather than citations, and believed that 35 citations does not accurately depict the problems experienced in the community. In response to questions from the public, Community Development Director Jurjis and License Supervisor Navarrete explained that the total TOT is 10 percent, the ad hoc committee wanted to scale back where possible and to allow the existing 59 short-term lodging permits outside the Coastal Zone to continue for ten years and not to allow any additional permits. Motion by Mavor O'Neill, seconded by Council Member Muldoon, to deny the recommendation. _ Substitute motio 'M'l Member Brenner, seconded bv Council Member Dixon, to a) find this action i rom the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(215060(c)(3) of the CEQA Guidelines because this action will not result in a physical change tot nvironment, directly or indirectly; and b) waive reading, read by title only, introduce Ordinance o. 2020-8, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 1.05.020 Subsection (F), Section 3.16.060 and Chapter 5.95 of the Newport Beach Municipal Code Relating to Short Term Lodging, with amended language to Section 5.95.050.A, and pass to second reading on February 25, 2020. In response to Council Member Duffield's question, City Attorney Harp advised that increasing the number of nights is not part of the motion; however, language could be added requiring a minimum stay of two nights. In response to Council Member Dixon's question, City Attorney Harp indicated a provision regarding Newport Island should return to the City Council. City Attorney Harp noted the revision to Section 5.95.0445.A.6 of the notice shall be in substantial compliance with a template created by the City, which will be available on the City website. Amended substitute motion by Council Member Brenner, seconded by Council Member Dixon, to a) find 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 Volume 64 - Page 315 City of Newport Beach Study Session and Regular Meeting February 11, 2020 result in a physical change to the environment, directly or indirectly; b) waive reading, read by title only, introduce Ordinance No. 2020-8, An Ordinance of the City Council of the City of NewportBeach, California, Amending Section 1.05.020 Subsection (F), Section 3.16.060 and Chapter 5.95 of the Newport Beach Municipal Code Relating to Short Term Lodging, with amended language to Sections 5.95.050.A and 5.95.045.A.6 and requiring a two night minimum stay, and pass to second reading on February 25, 2020; and c) direct staff to return with a provision regarding Newport IslandaBd e With Mayor O'Neill and Council Member Muldoon voting "no," the motion carried 5-2. City Attorney Harp reported that the City Council would adjourn to Closed Session to discuss the item listed in the Closed Session agenda and read the title. Jim Mosher discussed his understanding of the issues and believed Council should not sue the California Coastal Commission because it is likely to lose and the dispute involves the California Coastal Commission and a+rnrivate individuals. In response to Mayor O'Neill's question, City Attorney Harp explained that the notice means that Council is contemplating the initiation of something. IV. CLOSED SESSION - 9:40 p.m. v` A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9 (d) (2) and (e) (3)): 1 matter W On January 28, 2020, the City of Newport Beach received a Notice of Intent to Commence Cease and Desist Order, Restoration Order, and Administrative Civil Penalties Proceedings from John Ainsworth the Executive Director of the California Coastal Commission related to alleged prohibited encroachments on Peninsula Point from a 250 feet southeast of E Street to Channel Road, in the City of Newpo t Beach. A second Notice of Intent related to this same matter was received from John Ains&1th on January 30, 2020. A copy of the Notices of Intent are available for public inspection at tlWity�Clerks Office located at 100 Civic Center Drive, Newport Beach, California 92660.Is Mayor O'Neill reconvene ze meeting at 10:09 p.m. with all members of the City Council in attendance. VIII. CLOSED SESSION REPORT - None XIX. MOTION FOR RECONSIDERATION - None XX. ADJOURNMENT - 10:10 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 February 6, 2020, at 4:00 p.m. Leilani I. Brown City Clerk Will O'Neill Mayor Volume 64 - Page 316