HomeMy WebLinkAbout09/08/2020 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
September 8, 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
II. CURRENT BUSINESS
SS1. Clarification of Items on the Consent Calendar - None
SS2. Proclamation Recognizing September 17-23, 2020 as Constitution Week
Mayor O'Neill read the proclamation and presented it to Ashley Rodi from the Daughters of the
American Revolution.
SS3. Short Term Lodging (STL)
Community Development Director Jurjis used a presentation to discuss the Ad Hoc Committee
on Short Term Lodging, previous Emergency Ordinances, Ordinance No. 2020-15 (Phase 1) and
enforcement, Planning Commission review on July 23, 2020, Ad Hoc Committee
recommendations, minimum night stay survey, the survey regarding STL permit caps, STL
requirements in other cities, timeline to begin the 24-hour answering service, STL permit fee
updates, and the draft Phase 2 ordinance.
In response to Mayor O'Neill's question, Community Development Director Jurjis indicated
Council may request an agenda item regarding removal of the existing Emergency Ordinances.
Hal Sears opposed limiting the number of STLs on Balboa Island and believed the ban causes
Council's constituents to lose revenue.
Jim Mosher believed the City did not adequately inform the public about the topic for which
Council seeks input, expressed concern regarding laws that create classes of citizens that are
treated differently than others, suggested if Council wants to institute a cap, permits should be
granted through an lottery system, and believed revisions need to go through the Planning
Commission before Council.
Charles Dayton indicated STLs are not the issue, believing hotels do not want STLs to succeed.
Carmen Rawson asked if permitted or illegal units in Newport Beach are causing noise, trash,
and other issues, suggested implementing Phase 1, evaluating the results, and enforcing STL
requirements, and suggested the City get rid of illegal units.
Debbie Gubernick stated that Council has to create consistency in the rules, expressed
appreciation for all the research that has occurred, wanted Newport Beach to be a peaceful,
enjoyable place for everyone, including families, and suggested Council strike the right balance
by capping the number of STL permits.
Denys Oberman noted that the reasons to manage the number of STL units are contained within
the ordinance, questioned the equity of complaint -driven enforcement, supported the
recommendation for capping the number of STL permits, and requested additional study of the
three -night minimum suggestion.
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Angela Haryew believed that STL renters are not the problem and permit caps will adversely
affect her family, and opposed a three -night minimum.
Yolena Tam believed that the cap on the number of STL permits is a problem and now is not the
time to implement a cap if Council wants to support small businesses. She suggested that
Council review the results of Phase 1 before considering Phase 2 and increase the cap on permits.
Meg Cooper shared her experience with renting to tenants and stated noise enforcement should
be applied consistently throughout the City, whether a STL, long-term renter, or homeowners.
An unidentified speaker indicated that Newport Beach is a favorite location for renters,
suggested Council implement Phase 1, and agreed with the need to apply rules consistently.
David Tanner suggested Council learn the outcome regarding similar legislation for Laguna
Beach with the Coastal Commission before proceeding, believed Council should look at accessory
dwelling units and junior accessory dwelling units, stated that STL units should meet building
codes, be subject to inspection by the fire department, and provide onsite parking, and noted
that permits should be appealable by the public.
Gila Willner concurred with comments for implementing Phase 1 before Council considers
adding new restrictions and expressed concern that a cap on permits would result in more nine-
month rentals to college students, which may raise more issues.
Lori Hamel opposed having a minimum -night stay requirement, proposed that those with
violations and issues lose their permits, allow responsible STL owners to continue to rent to
responsible tenants, and requested to see an economic report on the proposed changes.
Jolene Capparelle shared her family's experience renting their STL unit and asked Council to
protect her rights and not to penalize her for those that do not comply.
Ken Rawson believed the City should enforce STL regulations and not grant permits to owners
that do not comply with the rules, stated that there are 1,510 active STL permits and only 87
complaints, and noted that Council approved a 24-hour answering service that has not been
implemented yet, and believed data received from the service can allow the City to pull permits.
Laura Curran advised that a drug and alcohol recovery facility adjacent to her property does not
follow local, County, and State codes and violated its agreement within six months of signing
the agreement in 2012, stated that the City should help residents work with State licensing
agencies to attach conditions to all licenses and permits, and asked Council to work with the
State to vigorously enforce licensing requirements.
Frank Capparelle believed the answering service should count complaints against both STL and
long-term renters.
Sue Reed asked Council to reconsider the requirement for a second person to be on-call for
complaints as this is unreasonable for a STL permittee and preferred no minimum -night
requirement.
Scott McFetters, Newport Island, commented that enforcing an ordinance is not easy and stated
that parking violations should count against retaining a STL permit.
Craig Wallace urged Council to halt the next phase until the results of the new regulations are
available, to act on evidence, and not to apply solutions to problems that do not exist for most
STLs.
Bud Reveley believed the number of permits should remain at the current number and asked if
there are illegal units in the City and, if so, how many.
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Avo Abadizian opposed increasing the minimum night stay, indicated the STL ban would have
weighed heavily on his decision to purchase a home in Newport Beach, and believed some of the
issues could be resolved by regulating long-term rental homes.
Jacqueline Wittmeyer expressed disappointment with the Planning Commission's discussion
and hoped Council would consider that she relies on her long-term rental for income.
Carol McDermott, representing Burr White Realty, Balboa Vacation Rentals, Sea Breeze
Vacation Rentals, and Abrams Coastal Properties, indicated the goal of the Ad Hoc Committee
was to balance the needs of property owners and residents, believed the standards of Phase 1
and Phase 2 are designed to diminish STL as it has existed for years, noted the Planning
Commission voted to deny Phase 2 regulations, stated the findings for Phase 2 are misleading
and unfair in describing all tourists as burdens, believed comparing Newport Beach to cities
without miles of coastal and bay frontage is unfair, Phase 2 should be postponed, regulations
must be approved by the Coastal Commission which has determined that STL is a permitted
right, supported a three -night minimum, the STL ban forced visitors into more crowded
situations and prevented new STL owners from obtaining permits, the ban prevents a single-
family homeowner who proposes a tear down/rebuild from retaining a STL permit, the proposed
cap will limit coastal access and reduce Transient Occupancy Tax (TOT) paid to the City, the
proposed cap does not address inactive permits or a mechanism for acquiring new permits as
inactive permits expire, suggested Council consider a different process for allowing new permits
and require permitholders to pay a minimum of $1,000 in TOT annually, which will reduce the
number of permits, STL comprises only 7 percent of total dwellings on the Peninsula, the Good
Neighbor Policy and the Nuisance Response Plan need further clarification, a guest contract
could address the policy and response plan, the Phase 1 ordinance should require a minimum
age of 25 years to rent a STL, a local contact person should be located within 5 miles of the
property, violation and penalty provisions should be based on the issuance of clearly defined
standards, a minimum of one parking space per property is acceptable, and Council should
consider occupancy limits.
Tresa Holloway discussed her reason for purchasing a STL unit, agreed with instituting an age
limit of 25 years or more, a three -night minimum stay, and a cap, believed the language of the
current ordinance is very negative and only allows negative input to Council through the
dedicated phone line, suggested hiring a patrol or private security to monitor and help enforce
some of these restrictions, and believed STL owners and management companies should form
some type of alliance.
Pete Evans opposed a 6 -night minimum and indicated he has adapted to a three -night minimum
and has been a good operator with no complaints.
Mayor Pro Tem Avery noted a housing revolution across the State, which is changing
neighborhoods, stated the solution to noise, parking, and trash complaints is robust and
fair/equitable code enforcement, but code enforcement boils down to dollars, believed the City
should invest more money into code enforcement and education, noted that he has always felt
the vast majority of STL owners/operators are good, but the City needs to focus on violations of
all types in all neighborhoods. He suggested that neighbors also form their own peaceful
solutions to the problems.
Council Member Dixon indicated she watched the Planning Commission meeting and did not
believe they fully understood the circumstances. Community Development Director Jurjis
agreed in that the Planning Commission has not spent 18 months on the subject, unlike the Ad
Hoc Committee. Council Member Dixon noted the Ad Hoc Committee separated the changes
into items that do and do not require Coastal Commission approval, noting the recommended
minimum night stay and cap on permits will need to go to the Coastal Commission. Community
Development Director Jurjis explained that staff recommended bifurcating the ordinances, staff
believes the Coastal Commission will support the proposal, and Newport Beach has the most
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STLs of any city of its size. In response to Council Member Dixon's question, Community
Development Director Jurjis advised that from the City's standpoint, the City has a permit
program with conditions; therefore, it is a conditional permit to operate STLs and is not a
property right. City Attorney Harp concurred and advised that a STL is allowed through an
annual permit and that permits do not vest anyone with a property right, and it can be
withdrawn. However, he explained that a long-term lease or a rental agreement for more than
30 days is a property right. Council Member Dixon clarified that Council is trying to find peace
between STL owners/management companies and residents. Community Development Director
Jurjis reiterated that there is no recommendation to take permits away from anyone, the goal
is more enforcement, and the program is reactive as residents report issues to code enforcement,
added that the 24-hour hotline will track data, and noted that complaints reported after
business hours should be directed to the Police Department. Council Member Dixon related that
good STL operators will not be affected by the recommendations. Community Development
Director Jurjis asked Council to provide feedback regarding establishing a cap, as current
permitholders might lose their permits through a lottery system. Council Member Dixon
explained that a property owner cannot demolish a duplex and build a single-family home,
stated that the City needs to think about the impacts of replacing single-family homes with
duplexes or quadraplexes on neighborhoods and STLs, and indicated that the Regional Housing
Needs Assessment (RHNA) allocation will be an interesting conflict between the Coastal
Commission and the Governor because STLs remove homes from the housing stock. Community
Development Director Jurjis noted the number of illegal units have dropped significantly,
between 10-20. Council Member Dixon supported a three -night minimum and a cap because
STLs decrease the housing stock and believed that the City should conduct an Environmental
Impact Report (EIR) of STL impacts on the community.
Council Member Herdman stated he wants this industry to thrive in the City and noted that it
has never been the intent of the Ad Hoc Committee to eliminate this industry. Jim Mosher
commented that placing a cap on STL permits would increase the value of homes with permits,
added that if Council does not place a cap, the proliferation of STL permits might decrease home
values because the proliferation may change the complexion of neighborhoods, believed a lottery
system would be very difficult to manage because of the property owners' uncertainty of
obtaining a permit each year, noted that the claims that there is no evidence of a need for the
Ad Hoc Committee and its recommendations are not true, and stated his support for establishing
a cap and a minimum three -night stay.
Council Member Brenner emphasized that the Planning Commission was put at a disadvantage
by having to weigh in after only a couple of hours of testimony, stated that the Ad Hoc Committee
has gone through an extensive process of revisions and meetings and has tried to balance the
rights of STL operators and residents. In response to her question, Community Development
Director Jurjis indicated STLs have grown 50% in the last six or seven years, probably due to
online platforms. Council Member Brenner believed not regulating STLs would change the
community from residential to one big hotel, noted that Council may need to consider using the
24-hour phone service for all nuisance violations, and stated support for the minimum rental
age of 25 years of age and the possibility of adopting Airbnb's no -party -policy.
Mayor O'Neill believed the language Council has used in the ordinance is particularly harsh
against this industry, inquired to the statistic for the conversion of STLs to homes on Balboa
Island, expressed concern about Coastal Commission approval if there is not an evidence -based
approach, noted that the 24-hour answering service will be operating soon and if the complaints
are valid, they will result in citations, and expressed his desire to see an economic analysis to
understand the impacts of STLs on City revenues.
Council Member Muldoon favored less regulation and continuing the item until the economy
has recovered.
With Mayor Pro Tem Avery and Council Members Brenner, Dixon, Duffield, and Herdman
agreeing, there was a 5-2 straw vote to require a three -night minimum stay.
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With Mayor Pro Tem Avery and Council Members Brenner, Dixon, and Herdman agreeing,
there was a 4-3 straw vote to institute a cap of 1,550 STL permits.
With Council Member Brenner disagreeing, there was a 6-1 straw vote to allow STL permits
upon the death of the permitholder to be transferred to a family member or heir such that the
transfer is not considered a new permit.
With Council Member Brenner disagreeing, there was a 6-1 straw vote to allow STL permits to
be transferred/assigned to a new owner upon the sale of the property.
With Mayor Pro Tem Avery and Council Members Brenner, Dixon, and Herdman agreeing,
there was a 4-3 straw vote to impose an age limit of at least 25 years to rent a STL.
III. PUBLIC COMMENTS
Mayor O'Neill announced that Closed Session will be continued to the September 22, 2020 City
Council meeting.
Jim Mosher believed the description of the Closed Session item is opaque and suggested language for a
future notice, commenting that if the item pertains to a sale of the property, Council should publicly
discuss the desirability of selling the property prior to discussing a price. He further believed that two
of the Future Agenda Items involve ballot measures, and a city may not use taxpayer funds to tell voters
whether they should support or oppose ballot measures.
Matthew Hurray inquired about opening the Balboa Island boardwalk.
Sylvia Santana advised that the Big Canyon Coastal Habitat Restoration and Adaptation Project is
occurring under her balcony and requested a review of the project due to the removal of trees and the
destruction of the trail.
An unidentified speaker thought the Big Canyon Coastal Habitat Restoration and Adaptation Project
area was a bird sanctuary and requested clarification from the City about what has been removed and
what is planned to be removed in the near future.
An unidentified speaker stated the trees in the Big Canyon Coastal Habitat Restoration and Adaptation
Project area were providing value and asked Council to take it seriously in order to save some of the
trees and accomplish the project.
IV. CLOSED SESSION — Continued to the September 22, 2020 City Council meeting
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code § 54956.8): 1 matter
Property: 883 W 15t" Street, Newport Beach, CA 92660
APN: 424-011-37
Agency Negotiators: Seimone Jurjis, Community Development Director
Lauren Wooding Whithnger, Real Property Administrator
Negotiating Parties: David Bahnsen for Pacifica Christian High School — Orange County
Under Negotiation: Instruct negotiators as to price and terms of payment.
V. RECESSED — 6:37 p.m.
VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
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September 8, 2020
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 - Council Member Brenner
X. PLEDGE OF ALLEGIANCE - Council Member Dixon
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member Duffield:
• Commended the Police, Fire and Harbor Departments for protecting the public over the weekend
and believed the Harbor Department needs additional staff
Council Member Muldoon:
• Noted Orange County moved to the red tier stage of California's Blueprint for a Safer Economy
criteria, which means schools may re -open
• Requested a future agenda item to consider the opening of parks and playground equipment
Council Member Herdman:
• Attended the Water Quality/Coastal Tidelands Committee meeting and received an update
regarding the trash wheel project, an Airport Task Force meeting, a meeting with Congressman
Rouda to discuss sea level rise, a meeting of the Technical Departures Subcommittee, and noted the
City will lobby the Board of Supervisors regarding Fixed Based Operator (FBO) leases at its
September 15, 2020 meeting
Council Member Brenner:
• Hosted a District 6 Town Hall regarding traffic issues and loud vehicles on August 27, 2020, noted
that community committees are working on various topics, added that complaints should be made
to the Police Department at 949-644-3717, noted that the presentation is available on the City's
website, the Corona del Mar Residents Association's website, and the Chamber's website, and
announced a survey of Corona del Mar residents will be conducted
Council Member Dixon:
• Announced the City is encouraging residents to write to the Board of Supervisors regarding the
General Aviation Improvement Program (GAIP)
• Thanked public safety personnel for their efforts over the Labor Day weekend
• Announced a virtual Town Hall for District 1 is scheduled for September 14, 2020, at 5:30 p.m.
• Requested a future agenda item to adopt a resolution to announce the City's commitment to end
child marriage in California
Mayor Pro Tem Avery:
• Attended a Board meeting of the Orange County Sanitation District (OCSD)
Mayor O'Neill:
• Utilized a slide to announce that registration for fall recreation programs opened on September 1,
2020
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XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
• Consideration of an emergency ordinance to enforce State guidance on face coverings by
administrative citation [Brenner]
There was no consensus to bring the item back at a future meeting.
• Consideration of opposing California Proposition 15 [Dixon & O'Neill]
Mayor O'Neill, Mayor Pro Tem Avery, Council Member Dixon, Council Member Duffield, and
Council Member Muldoon concurred to bring this item back at a future meeting.
• Consideration of ways to expand the Newport Beach Municipal Code to address code
violations, including short term lodging, fireworks, and noise complaints [Dixon]
Council Member Brenner, Council Member Dixon, and Council Member Herdman concurred to
bring the item back at a future meeting.
• Consideration of supporting California Proposition 20 [Muldoon]
Mayor O'Neill, Mayor Pro Tem Avery, Council Member Dixon, Council Member Duffield, and
Council Member Muldoon concurred to bring this item back at a future meeting.
• Resolution to Express the City Council's Appreciation to the Newport Beach Fire
Department for All the Mutual Aid Provided During 2020 [O'Neill]
The City Council unanimously concurred to bring the item back at a future meeting.
XIV. PUBLIC COMMENTS ON CONSENT CALENDAR
Nancy Scarbrough, addressing Item 8 (Approval of a Purchase Agreement with South Coast Fire
Equipment, Inc. for Pierce Manufacturing Fire Apparatus), noted the 3% discount for advance payment
and purchase of a performance bond, and asked if the City could earn more than 3% by delaying payment
until the truck is ready.
XV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the August 25, 2020 City Council Regular Meeting [100-20201
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. Ordinance No. 2020-20: Non -Exclusive Commercial Solid Waste Franchise Agreements
[731100-20201
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) Conduct second reading and adopt Ordinance No. 2020-20, An Ordinance of the City Council of
the City of Newport Beach, California, Granting the 2020 Non -Exclusive Franchise Agreements
for Commercial Solid Waste and Divertible Materials Handling Services within the City of
Newport Beach to the 15 so named companies.
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RESOLUTION FOR ADOPTION
4. Resolution No. 2020-77: Acceptance of the State of California, Department of Parks and
Recreation, Division of Boating and Waterways Grant for Replacement of the City's
Public Vessel Sewage Pumpout Stations (C-8650-1) [381100-2020]
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction) of the
CEQA Guidelines, because this project has no potential to have a significant effect on the
environment;
b) Adopt Resolution No. 2020-77, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing Acceptance of Grant Agreement C8963454 between the State of
California Department of Parks and Recreation, Division of Boating and Waterways and the City
of Newport Beach For Seventy -Five Percent of the Replacement Cost for Five Public Vessel Sewage
Pumpout Stations in Newport Harbor;
c) Authorize the City Manager to sign and execute the Grant Agreement and subsequent related
documents as may be related to the replacement of the City's public vessel sewage pumpout
stations throughout Newport Harbor; and
d) Approve Budget Amendment No. 21-004 recognizing $79,705.57 in increased grant
contributions in Account No. 13501-431385-201113 and appropriates $79,705.57 in increased
expenditures for the Vessel Sewage Pumpout Replacement improvement project (Account No.
13501-980000-20H13).
CONTRACTS AND AGREEMENTS
5. Annual Concrete Replacement Program — Notice of Completion for Contract No. 7682-1
(20R06) [38.1100-2020]
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 Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
6. West Coast Highway Median Landscaping Phase 2 — Notice of Completion for Contract
No. 7189-2 (181,11) [381100-2020]
a) Accept 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 Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
7. FY 2019-20 Streetlight Improvement Project (Eastbluff) — Award of Contract No. 7661-2
(20V02) [381100-2020]
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15302(c) (replacement of existing facilities involving negligible expansion of capacity) of
the CEQA Guidelines, because this project has no potential to have a significant effect on the
environment;
b) Approve the project drawings and specifications;
c) Relieve Alfaro Communications Construction, Inc. (ACCI) of their bid;
d) Award Contract No. 7661-2 to International Line Builders, Inc. for the total bid price of $723,858
(base bid plus additive bid items), and authorize the Mayor and City Clerk to execute the
contract; and
e) Establish and encumber a $74,142 (approximately 10 percent) contingency amount to cover the
cost of unforeseen work not included in the original contract.
Council Member Muldoon recused himself from Item 7 due to previous business interest
conflicts.
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8. Approval of a Purchase Agreement with South Coast Fire Equipment, Inc, for Pierce
Manufacturing Fire Apparatus (C-8634-2) [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) Waive City Council Policy F-14; and
c) Approve a Purchase Agreement with South Coast Fire Equipment, Inc. for a not to exceed
amount of $1,629,343.01 for the purchase of two, Pierce Manufacturing Type 1 Fire Apparatus.
9. Services Agreement for Public Safety Helicopter Services with the City of Huntington
Beach (C-8285-2) [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 it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve the services agreement for public safety helicopter support between the City of
Huntington Beach and the City of Newport Beach, and authorize the Mayor and City Clerk to
execute the Agreement.
Mayor O'Neill recused himself on Item 9 due to a family relationship conflict.
10. Acceptance of the State of California Office of Traffic Safety Selective Traffic
Enforcement Program Grant (C-8201-5) [381100-2020]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly;
b) Authorize the Mayor to sign the Selective Traffic Enforcement Program (STEP) Grant
Agreement and accept a $237,000 award granted to the NBPD by the OTS pursuant to City
Council Policies F-3 and F-25. To comply with City Council Policy F-3, the City Council must
formally accept the award of $237,000 and create a new appropriation to expend the funds; and
c) Approve Budget Amendment No. 21-001 increasing NBPD revenue estimates and expenditure
appropriations by $237,000.
MISCELLANEOUS
11. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library
and Appropriate Funds to the Library's Fiscal Year 2020-21 Maintenance and Operation
Budget [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) Accept a check in the amount of $200,000 from the Friends of the Newport Beach Library and
approve Budget Amendment No. 21-003 to increase expenditures by the same amount in
Division 0106052 (Friends of the Library).
12. City Hall and Limited Off -Site Holiday Closure from Thursday, December 24, 2020
through Friday, January 1, 2021 [100-2020]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve closing the Civic Center and providing limited services at off-site facilities from
Thursday, December 24, 2020 through Friday, January 1, 2021. All facilities would reopen on
Monday, January 4, 2021. The proposed closure does not apply to public safety services or
emergency on-call functions.
13. Response to the Recommendations of the Orange County Grand Jury Report "Protecting
Those Who Protect and Serve" [100-2020]
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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 and send the response.
Motion by Mayor Pro Tem Avery, seconded by Council Member Muldoon, to approve the
Consent Calendar; and noting Mayor O'Neill's recusal on Item 9, Council Member Muldoon's recusal on
Item 7, and the amendments to Item 1.
The motion carried unanimously.
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None
XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Hoiyin Ip indicated September is Coastal Cleanup Month, asked Council Members to participate in
clean-up day, requested the plan for the trash and toxics reduction ordinance, and shared a video on
single -use plastics.
Stephanie Riggs requested the one-way signs on Balboa Island be taken down.
Dorothy Kraus, addressing Future Agenda Items, expressed concern regarding the use of tax dollars to
oppose and support Propositions 15 and 20, respectively, and questioned whether it is legal.
Doyle Borden requested removal of the one-way signs on Balboa Island because they detract from the
beauty of the area.
An unidentified speaker supported taking down the one-way signs on Balboa Island, which are intrusive
and no longer necessary.
An unidentified speaker supported removing the one-way signs on Balboa Island due to concerns about
safety and shaming users.
John Larson asked Council to look into banning electric bikes on sidewalks due to speeding.
XVIII. PUBLIC HEARING
14. Ordinance Nos. 2020-22 and 2020-23: Newport Airport Village Planned Community
Development Plan (PA2014-225) [100-20201
Deputy Community Development Director Campbell utilized a presentation to discuss the vicinity
map, the area map, the applicant's request, density of the project, the General Plan Amendment
map, an anomaly in the General Plan, the General Plan airport area residential unit table, and
General Plan policy waivers.
Mayor O'Neill referenced page 14-6 and noted the construction of 329 units in the 7.14 acres of
Planning Area 1 would be an effective density of 46 units/acre, with the density bonus the effective
density would be 69 units/acre, and only two-thirds of the area is buildable, which is a much denser
project. Deputy Community Development Director Campbell advised that CalTrans is involved with
housing near airports and the conflicting rules predate the housing crisis.
In response to Council Member Dixon's questions, Deputy Community Development Director
Campbell indicated the required minimum of 493 dwelling units is too dense, the General Plan
requires a minimum 30 dwelling units/acre and a maximum 50 dwelling units/acre over the entire
residential village (both planning areas), applying the minimum density to Planning Area 1 only
results in a project denser than the General Plan's vision, and the planning areas were created
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specifically to keep residential units away from the safety zone and the area exceeding 65 CNEL;
the Planned Community (PC) text does not allow residential units in Safety Zone 3, but allows
residential units in Safety Zone 6, which covers the entire area; the regulations in the PC text make
this project consistent with the written plan, but the Airport Land Use Commission (ALUC) found
it inconsistent with the plan; Council may approve the project and override the ALUC's finding, and
Council approved providing a Notice of Intent to Override on July 28, 2020. City Attorney Harp
explained assignment and transfer of liability and immunity, and added that the City will not be
held liable if Council approves the project. Deputy Community Development Director Campbell
related that the value of parkland used to calculate an in -lieu fee is based on appraisals conducted
in 2007.
In response to Council Member Herdman's question, Deputy Community Development Director
Campbell advised that staff does not delay applications based on potential amendments to the
General Plan, added that Council could choose to postpone the item for the Housing Element
Update, noted that this project is an opportunity to create a housing opportunity site for the
upcoming Housing Element Update, and further noted that there is no actual project proposed.
In response to Mayor Pro Tem Avery's questions, Deputy Community Development Director
Campbell indicated CalTrans' concerns were the same as the ALUC's concerns, stated that the
property owner is willing to put housing on this site, and the housing can count toward the RHNA
allocation, noted that the majority of the housing in the project will not be affordable housing,
probably around 5%, and confirmed the project may provide 329-444 units, depending on the density
bonus.
In response to Council Member Brenner's questions, Deputy Community Development Director
Campbell could not say whether the number of affordable housing units required on this site by the
upcoming Housing Element would be the same or more than the number required by the current
Housing Element, because policies have not been determined for the upcoming Housing Element.
In response to Mayor O'Neill's question, City Attorney Harp advised that the development
agreement vests the applicant with the right to build the project. Deputy Community Development
Director Campbell explained that the development agreement provides two terms, 15 years for the
residential component and 20 years for the commercial component, noted the applicant could build
housing at any time within that 15 -year period, and staff intends to include the housing in the
Housing Element because they believe it will be built within the next RHNA cycle.
Deputy Community Development Director Campbell continued the presentation with the
components of a park dedication waiver, the Zoning Code amendment, the conceptual plan, and the
development agreement.
In response to Council Member Dixon's questions, Deputy Community Development Director
Campbell indicated the project would have some outdoor spaces, and noted that the terms of
development agreements have extended beyond 10 years, but staff feels 15 years is an appropriate
term given the uncertainty of the housing market. Council Member Dixon wished to know the value
of the property to calculate the park in -lieu fee.
Deputy Community Development Director Campbell further discussed the California
Environmental Quality Act (CEQA) analysis, the Airport Environs Land Use Plan (AELUP) map,
ALUC inconsistent findings, project benefits, the public hearing timeline, the staff recommendation,
and future actions.
In response to Mayor Pro Tem Avery's question, Deputy Community Development Director
Campbell related that the ALUC typically finds significant residential projects located in the Airport
Area inconsistent, the height of the residential component will be around 85 feet, five to six stories,
the height limit for the Airport Area is 150 feet, the public safety fee was negotiated because there
is no formula to calculate it, the fee is similar to fees negotiated for other projects, and the City may
need to develop a financing district to finance the ongoing costs of public safety equipment and
personnel.
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Council Member Dixon believed the City needs a policy framework for development agreements to
provide some certainty and suggested that the Finance Committee work with staff to craft a policy.
Patrick Strader, applicant representative, shared the history of the project since 2005, the ALUC's
2014 findings of inconsistency, the voters' failure to adopt Measure Y, density and acreage
requirements, the applicant's request for a development agreement, ALUC findings, the applicant's
offer to pay $2 million within 30 days of signing the agreement, and the reasons for a 15 -year term.
Mayor O'Neill opened the public hearing.
Jim Mosher remarked that Council should reflect on the timing of the project, the fiscal impact
report, and the net cost of the project to the City, and added that Council cannot consider comments
it has not heard.
Nancy Scarbrough believed the percentage of low income and very low-income units is low and
10,000 housing units will be needed to fulfill the RHNA allocation for affordable housing.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Motion by Mayor O'Neill, seconded by Council Member Herdman, to a) adopt Resolution
No. 2020-78, A Resolution of the City Council of the City of Newport Beach, California, Adopting
Environmental Impact Report Addendum No. ER2020-002 to the 2006 General Plan Update
Program Environmental Impact Report and 2014 General Plan Land Use Element Update
Supplemental Environmental Impact Report for the Newport Airport Village Planned Community
Development Located at 4341, 4361, and 4501 Birch Street; 4320, 4340, 4360, 4400, 4500, 4520, 4540,
4570, 4600, and 4630 Campus Drive; and 4525, 4533, and 4647 MacArthur Boulevard (PA2014-
225); b) waive full reading, direct the City Clerk to ready by title only, introduce Ordinance
No. 2020-22, An Ordinance of the City Council of the City of Newport Beach, California, Approving
Zoning Code Amendment No. CA2014-009 and Planned Community Development Plan No. PC2020-
02 Establishing the Newport Airport Village Planned Community Development Plan Located at
4341, 4361, and 4501 Birch Street; 4320, 4340, 4360, 4400, 4500, 4520, 4540, 4570, 4600, and 4630
Campus Drive; and 4525, 4533, and 4647 MacArthur Boulevard (PA2014-225), and pass to second
reading on September 22, 2020; and c) waive full reading, direct the City Clerk to ready by title only,
introduce Ordinance No. 2020-23, An Ordinance of the City Council of the City of Newport Beach,
California, Approving Development Agreement No. DA2014-003 for the Newport Airport Village
Planned Community Development for the Property Located at 4341, 4361, and 4501 Birch Street;
4320, 4340, 4360, 4400, 4500, 4520, 4540, 4570, 4600, and 4630 Campus Drive; and 4525, 4533, and
4647 MacArthur Boulevard (PA2014-225), and pass to second reading on September 22, 2020.
With Council Member Brenner voting "no," the motion carried 6-1.
XIX. CURRENT BUSINESS
15. Emergency Ordinance No. 2020-008: Mandatory Social Distancing, Face Coverings, and
Restrictions on Walk -Up Bars for Eating and Drinking Establishments [100-20201
Council Member Brenner indicated on August 10, 2020, Council Members received a letter from
former Mayors and Council Members, who have formed Recover Newport on the Road to Recovery,
asking Council for this consideration, noted the City's status has changed since August, but this is
an opportunity for the community to voluntarily use masks and not suffer another spike, stated the
City is close to being able to reopen businesses and schools, and believed Council should talk about
this in terms of the effects of the City's new tier on the proposed ordinance.
Council Member Dixon supported the spirit of the ordinance. In response to her question,
Community Development Director Jurjis reported there is one walk-up bar, the Peninsula Kitchen
and Bar.
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Mayor Pro Tem Avery noted restaurants are allowed 25% capacity, but bars are still closed, stated
that code enforcement will ensure businesses and customers remain healthy, and added that if
COVID-19 recurs this winter, Council will need to act quickly to support guidelines and balance
guidelines with personal freedom.
In response to Council Member Muldoon's question, Community Development Director Jurjis
reported that the Police Department enforces State laws, code enforcement handles the conditions
of approval for emergency use permits and contacts businesses that are the subject of complaints,
the County Health Department ensures business staff follow public health protocols, the Alcohol
Beverage Control (ABC) Board has been ensuring alcohol service remains within the confines of the
dining area, and the City has issued warnings in response to complaints. Council Member Muldoon
believed the legal entities for enforcement are already in place and the proposed ordinance is not
needed at this time.
Mayor O'Neill noted the proposed ordinance is covered by existing County and State health orders,
the Police Department can enforce the health orders when necessary, County health agencies have
their own orders that can be enforced by the Sheriffs Department and the health agencies, the City
Manager participates in calls on Fridays with other Mayors, City Managers, and the Orange County
Health Director and CEO, and noted the County will be more aggressive than other agencies.
Council Member Dixon thanked Community Development Director Jurjis and his staff for approving
permits for 110 restaurants, as the vast majority of restaurants and bars are complying with local
and State mandates. In response to her question, Community Development Director Jurjis advised
that one code enforcement officer works Saturday and Sunday, and every month a small team
conducts nighttime restaurant and bar inspections.
In response to Council Member Brenner's question, City Manager Leung did not believe anything
else is needed, as the new tier continues the guidelines for social distancing and masks, which are
requirements of the City's emergency ordinance and temporary use permits.
Jim Mosher believed Council could not adopt the proposed ordinance because there is a noticing
problem and noted that the description and staff report refer to walk-up bars, but the proposed
ordinance refers to dining areas in all eating and drinking establishments.
Motion by Mayor O'Neill, seconded by Council Member Dixon, to table the item indefinitely.
The motion carried unanimously.
16. Coronavirus (COVID-19) Update [100-2020]
City Manager Leung used a presentation to discuss the Blueprint for a Safer Economy, Orange County's
movement from the purple tier to the red tier, new cases and positive tests in the County, red tier
highlights, and reopening updates for the Central Library, City Hall, community centers, and the
OASIS Senior Center.
In response to Council Member Muldoon's question, City Manager Leung indicated the City does not
have any guidance for reopening the OASIS Senior Center gym, but staff can ask for clarification.
Fire Chief Boyles continued the presentation with a discussion of wildfire mutual aid, the most acres
burned in California's history, and the red flag warning for today through Wednesday night. He
reported that there were no serious public safety issues over Labor Day weekend, noted more than
310,000 people visited the beaches, 330 Code 3 responses occurred, and Lifeguards performed 51 ocean
rescues.
Council Member Brenner related that she has never seen as many emergency vehicles as she saw over
the weekend and thanked all personnel on behalf of Council.
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Fire Chief Boyles continued the presentation with a report on the COVID-19 response, case trends with
18 to 34 year old's having the highest rate, testing, and hospitalization/ICU status.
Mayor O'Neill noted the current Reproduction Rate (RT) in California is 0.84, reported the new tier
guidelines only track two categories: positivity rate and case counts, which is adjusted case counts,
indicated there may be a strong push for more testing in Orange County, especially at super center
sites, such as the Orange County Fairgrounds, because more testing may result in a lower positivity
rate, and stated that essential workers may be tested at super center sites.
Council Member Muldoon suggested the infectious rate is assumed unless testing proves otherwise.
Mayor O'Neill believed everyone should be tested, but noted Dr. Chau advised him that elected officials
should not encourage all residents to be tested because it could create a testing backlog, and that
essential workers should be tested regularly.
In response to Mayor O'Neill's questions, City Clerk Brown reported that the Orange County Registrar
of Voter's Office has agreed to provide five-day vote centers at the City Hall Community Room, Marina
Park, OASIS Senior Center, and Newport Coast Community Center and added that drop boxes will be
available as well.
Jim Mosher noted the Council's previous concern about the Newport Beach Restaurant Business
Improvement District (BID), understood Council's allocation of $80,000 to Restaurant Month was
supposed to benefit all food establishments equally, but the program seems to be selective, and stated
that the source of funding for prizes has not been disclosed.
XX. MOTION FOR RECONSIDERATION - None
XXI. ADJOURNMENT - Adjourned at 9:31 p.m. in memory of George Argyros Jr.
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
September 3, 2020, at 4:00 p.m.
aA4LhX1K"
Leilani I. Brown
City Clerk
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Will O'Neill
Mayor
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