HomeMy WebLinkAbout10/13/2020 - Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
October 13, 2020
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. PUBLIC COMMENTS
Jim Mosher believed Council could not fully discuss the five matters noted on Closed Session Item A
in 25 minutes, as the issues may be complex.
III. CLOSED SESSION - Council Chambers Conference Room
A. CONFERENCE WITH LEGAL COUNSEL
ANTICIPATED LITIGATION - INITIATION OF LITIGATION
(Government Code § 54956.9(d)(4)): 5 matters
IV. RECESSED - 4:01 p.m.
V. RECONVENED AT 4:30 P.M. FOR REGULAR MEETING
VI. 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
VII. CLOSED SESSION REPORT
City Attorney Harp reported that upon motion by Council Member Herdman and second by Mayor Pro
Tem Avery, the Council voted unanimously to initiate litigation regarding one matter and added that
particulars related to the litigation will be disclosed to any person upon inquiry once the litigation has
formally commenced.
VIII. INVOCATION - Pastor Drew Ross, Christ Lutheran Church, Costa Mesa
IX. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Avery
X. NOTICE TO THE PUBLIC
XI. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member Brenner:
• Utilized slides to commend the Public Works and Fire Departments regarding their response to the
water main breaks at Shorecliffs, announce the Corona del Mar High School COVID-19 Project, and
the virtual Short -Term Lodging Rental Workshop on October 22, 2020 at 4:00 p.m.
Council Member Dixon
• Attended an Ad Hoc Committee on Short -Term Lodging meeting and a Boardwalk safety meeting
with the Balboa Peninsula Residents Association
• Requested a future agenda item to consider an ordinance to require owner -occupied short-term
rentals on Newport Island only
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Council Member Duffield:
• Requested a future agenda item to discuss the possibility of a zoning code amendment to allow
restaurant and health club uses in MU -DW Mixed -Use Dover Drive/Westcliff area
Council Member Muldoon:
• Requested a future agenda item to discuss traffic calming measures in the Dover Shores
Mayor Pro Tem Avery:
• Attended the Orange County Sanitation District's operations committee meeting and the Ad Hoc
Committee on Homeless Task Force meeting
• Utilized a slide to announce a virtual Zoning Amendment Workshop on October 19, 2020 at
6:00 p.m.
Mayor O'Neill:
• Addressed the Orange County Bar Association regarding the City's and other cities' reactions for
small businesses
• Attended the Housing Element Update Advisory Committee (HEUAC) meeting the prior week and
the virtual Crystal Cove Annual Gala
• Announced Newport Harbor High School will begin its 90th anniversary celebrations over the
weekend and the upcoming Police Appreciation Breakfast
• Utilized slides to announce a virtual workshop entitled, "Envisioning the Future of Housing" on
October 20, 2020 at 6:00 p.m., a shred and e -waste event on October 17, 2020 at Harbor Day School
from 8:00 a.m. to noon, the last day to register to vote is October 19, 2020, and the locations of ballot
drop boxes
XII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
• Consideration of additional restrictions concerning surrey use on the Peninsula [Dixon]
Mayor O'Neill, Mayor Pro Tem Avery, Council Member Brenner, Council Member Dixon, Council
Member Duffield, and Council Member Herdman concurred to bring this matter back at a future
meeting.
• Consideration of holding a discussion about the General Plan Update [Brenner]
In response to Mayor O'Neill's question, Council Member Brenner clarified that she wanted to
review the General Plan Update process during a study session.
The City Council unanimously concurred to bring this matter back at a future meeting.
• Consideration of maintaining outdoor dining after the COVID Emergency [O'Neill,
Dixon, Muldoon]
The City Council unanimously concurred to bring this matter back at a future meeting.
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR
Due to technical difficulties, Mayor O'Neill recessed the meeting at 4:49 p.m. and reconvened
at 4:58 p.m. with all members of the City Council in attendance.
Council Member Brenner noted residents in the area of Item 8 (Concrete Alley and Street Replacement
—Award of Contract No. 7753-2 (21R07)) have underground utilities and will soon have new alleys. She
expressed her appreciation for their willingness to provide funding.
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In response to Council Member Dixon's question regarding Item 13 (Approval of Budget Amendment to
Allocate Restricted Donations for Purchase of SWAT Team Protective Equipment), City Manager Leung
reported that a group of community members who have a personal connection to a member of the police
force anonymously donated funds which will be used to purchase protective equipment for the SWAT
team.
Mayor O'Neill thanked staff and the Spyglass Hill Homeowners Association for developing and funding
Item 9 (Mission Bay Drive Drainage Project — Award of Contract No. 7889-1) and members of the
community for donating to Item 13, and announced staff has pulled Item 16 (City Council Support for
Opening Park Playgrounds) from the agenda.
Jim Mosher noted that one-way streets adjacent to those named in Item 3 (Ordinance No. 2020-25:
Designating Portions of 61St and Lancaster Streets in Newport Shores as One -Way Streets) are not
included in the Newport Beach Municipal Code, questioned how Item 5 (Resolution No. 2020-86:
Announcing Its Commitment to End Child Marriage and Authorizing the City Manager, or Designee, to
Provide Educational Information Pertaining to Ending Child Marriage) pertained to the functions of the
City, and inquired whether staff made Council aware of all the applicants for Item 14 (Confirmation of
Appointment to the Newport Beach Restaurant Association Business Improvement District Advisory
Board of Directors) prior to voting.
Hoiyin Ip, addressing Item 11 (Amendment No. Two to Agreement for Beach Container Refuse
Collection Service with Rainbow Disposal Co., Inc.), thanked the Public Works Department for cleaning
the beaches, noted the annual cost of the contract increased from $120,000 to $320,000, and hoped
Council would support the trash and toxics reduction ordinance.
Denys Oberman, addressing Item 4, thanked staff for bringing this item forward, but believed the
ordinance contained a significant gap regarding enforcement and that motorized vehicles on the
Boardwalk are unsafe.
XIV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the September 22, 2020 City Council Regular Meeting [100-20201
Waive reading of subject minutes, approve as written, 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 INTRODUCTION
3. Ordinance No. 2020-25: Designating Portions of 61st and Lancaster Streets in Newport
Shores as One Way Streets [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) Waive full reading, read by title only, introduce Ordinance No. 2020-25, An Ordinance of the
City Council of the City of Newport Beach, California, Amending Section 12.52.060 of the
Newport Beach Municipal Code to Designate Portions of Streets as One -Way Traffic Only, and
pass to second reading on October 27, 2020.
ORDINANCE FOR ADOPTION
4. Ordinance No. 2020-24: Amending Chapter 12.54 of the Newport Beach Municipal Code
Pertaining to the Oceanfront Boardwalk Safety Program [100-20201
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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) Conduct second reading and adopt Ordinance No. 2020-24, An Ordinance of the City Council of
the City of Newport Beach, California, Amending Chapter 12.54 of Title 12 of the Newport Beach
Municipal Code Pertaining to the Oceanfront Boardwalk Safety Program.
City Clerk Brown recused herself from Item 4 due to real property interest conflicts.
Council Member Muldoon voted "no" on Item 4.
RESOLUTIONS FOR ADOPTION
5. Resolution No. 2020-86: Announcing Its Commitment to End Child Marriage and
Authorizing the City Manager, or Designee, to Provide Educational Information
Pertaining to Ending Child Marriage [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. 2020-86, A Resolution of the City Council of the City of Newport Beach,
California, Announcing Its Commitment to End Child Marriage by Calling for an "End Child
Marriage Under 18, No Exceptions" Law and Authorizing the City Manager, or Designee, to
Provide Educational Information Pertaining to Ending Child Marriage.
6. Resolution No. 2020-87: Adding Street Sweeping Parking Restrictions on Terrace Ridge
[100-20201
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2020-88, A Resolution of the City Council of the City of Newport Beach,
California, Establishing "No Parking" Restrictions on Designated Streets on Specific Days and
Times to Improve Street Sweeping Effectiveness and Rescinding Resolution No. 2017-66.
7. Resolution No. 2020-88: Emergency Management Performance Grant Authorization
(C-8653-1) [381100-20201
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. 2020-82, A Resolution of the City Council of the City of Newport Beach,
California, Providing Written Authorization to the State of California Governor's Office of
Emergency Services of the Standard Assurances Required to Apply for Grants from the Federal
Department of Homeland Security, Federal Emergency Management Agency.
CONTRACTS AND AGREEMENTS
8. Concrete Alley and Street Replacement - Award of Contract No. 7753-2 (21R07) [381100-
20201
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. 7753-2 to S&H Civilworks for the total bid price of $1,288,025, and
authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $129,000 (approximately 10 percent of total bid) to cover the cost of
unforeseen work not included in the original contract; and
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e) Approve Budget Amendment No. 21-016 appropriating $122,671 in increased expenditures in
Account No. 65802-941003 from Assessment District 117 unappropriated fund balance.
Council Member Muldoon recused himself from Item 8 due to previous business interest
conflicts.
City Clerk Brown recused herself from Item 8 due to real property interest conflicts.
9. Mission Bay Drive Drainage Project- Award of Contract No. 7889-1 (211103) [381100-20201
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15304 (minor alterations in the condition of land, water, and/or vegetation) of the CEQA
Guidelines, as the project only entails minor trenching without removal of healthy, mature trees;
installation of subdrain pipe; and backfilling to restore the original surface;
b) Approve project drawings and specifications;
c) Award Contract No. 7889-1 to Bunker Construction, Inc. for the total bid price of $143,983, and
authorize the Mayor and City Clerk to execute the contract;
d) Establish $14,400 (approximately 10 percent) contingency to cover the cost of unforeseen work
not included in the original contract; and
e) Approve a Cooperative Agreement (C-7889-2) with Spyglass Hill Community Association
(Association) and accept the $100,000 contribution included in the adopted FY2020-21 CIP
budget for the project, and authorize the Mayor and City Clerk to execute the agreement.
10. Via Lido Soud and Nord Water Main Replacement - Award of Contract No. 7645-2 (20W12)
[381100-20201
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Class 2 Section 15302(c) (replacement of existing public facilities involving negligible or no
expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter
3, because it has no potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No. 7645-2 to T.E. Roberts, Inc. for the bid amount of $3,787,401 for the
Via Lido Soud and Nord Water Main Replacement project and authorize the Mayor and City
Clerk to execute the contract;
d) Establish a contingency of $378,000 (approximately 10% of total bid) to cover the cost of
unforeseen work not included in the original contract; and
e) Approve Budget Amendment No. 21-017 appropriating $1,347,500 in increased expenditures in
Account No. 70201931-980000-20W12 from the Water Enterprise Fund unappropriated fund
balance.
11. Amendment No. Two to Agreement for Beach Container Refuse Collection Service with
Rainbow Disposal Co., Inc. (C-4709) [381100-20201
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;
b) Approve Amendment No. Two to Agreement with Rainbow Disposal Co., Inc. for Beach
Container Refuse Collection Service to modify the compensation terms to increase the total not -
to -exceed amount by $400,000.00 for a total not -to -exceed amount of $1,897,624.30, and extend
the contract to December 31, 2022; and
c) Authorize the Mayor and City Clerk to execute the amendment.
12. Parking Meter Equipment Replacement Plan and Purchase Authorization (C-8644-1)
[381100-20201
a) Find this project 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 1578) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because this project has no potential to have a significant effect on the environment;
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b) Authorize staff to purchase and install the minimum number of pay stations as may be required
to ensure compliance with the City's Local Coastal Program Implementation Plan and the
California Vehicle Code;
c) Authorize the City Manager or designee to enter into an agreement for the purchase, installation
and maintenance of the minimum number of multi -space pay stations required to replace single
space parking meters, in an amount not to exceed $661,004; and
d) Waive the standard bidding requirements provided by City Council Policy F-14 and approve a
single source award of the agreement to T2 Systems, Inc. (T2).
Council Member Muldoon recused himself from Item 12 due to previous business interest
conflicts.
MISCELLANEOUS
13. Approval of Budget Amendment to Allocate Restricted Donations for Purchase of SWAT
Team Protective Equipment [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) Approve Budget Amendment No. 21-012 increasing revenue estimates by $33,570 in the Police
Department Private Donations/Contributions account, 01035352-561005, and increasing
expenditure appropriations to the Police Department SWAT Supplies expenditure account,
01035353-841024.
14. Confirmation of Appointment to the Newport Beach Restaurant Association Business
Improvement District Advisory Board of Directors [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) Appoint Micah Schiesel, representing The Lounge Group, to the NBRA BID Advisory Board of
Directors for term ending June 30, 2021.
15. Grants and Donations Report for the Quarter Ending September 30, 2020 [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) Receive and file.
16. City Council Suppo=t for Opening Park Playgrounds [100-2020]
Removed from the agenda.
Motion by Mayor Pro Tem Avery, seconded by Council Member Dixon, to approve the Consent
Calendar; and noting the "no" vote by Council Member Muldoon on Item 4, recusals by Council Member
Muldoon on Items 8 and 12, and the removal of Item 16 from the agenda.
The motion carried unanimously.
XV. ITEMS REMOVED FROM THE CONSENT CALENDAR — None
XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Hoiyin Ip hoped outdoor dining would become permanent in some way and that staff would consider a
car -free entertainment area.
Jim Mosher suggested Council discuss rules for rentals in excess of 30 days, particularly a homeowner's
ability to rent a room or rooms for more than 30 days.
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Mike Glenn understood that Council directed staff to prepare an ordinance limiting Boardwalk users to
pedestrians only during summer weekends and questioned whether staff ignored the direction, obtained
a modification from Council without the public's knowledge, or would present the ordinance at a future
meeting.
Mayor O'Neill indicated that staff would present the ordinance at a future meeting.
XVII. PUBLIC HEARINGS
17. Resolution Nos. 2020-89 and 2020-90: Approving General Plan Amendment No. GP 2020-
005 and Tentative Parcel Map No. NP2020-007 for a Residential Subdivision at
2400 Santiago Drive (PA2020-041) [100-20201
Associate Planner Lee utilized a presentation to discuss the applicant's request and display a map
of proposed and existing conditions on the parcel.
In response to Council questions, Associate Planner Lee indicated two adjacent parcels have flag
lots, structures are located on both, City records contain approvals for both, noted that this action
could serve as a precedent for owners of other large lots in the area, stated that this is not spot
zoning, advised that the Planning Commission has reviewed the application, the General Plan
designation for the parcel will remain the same, and confirmed that the City will be able to count
an additional housing unit towards its Regional Housing Needs Assessment (RHNA) allocation.
Mayor O'Neill opened the public hearing.
Jim Mosher noted the resolution does not include a map showing the parcel before and after the
General Plan amendment.
Steve Farwell opposed the subdivision of the parcel.
Charlie Cotton advised that no one from the project has contacted him, inquired regarding the
precedent for subdivisions mentioned in the report, requested that Council continue the item so he
could learn about the property owner's intentions regarding trees on the parcel, and further
requested the original zoning for the parcel.
Shawna Schaffner, representing the applicant, related details of the proposal, noted that the
subdivision will add one housing unit to the City, and that the subdivision will result in two parcels
that are similar to parcels immediately surrounding the site.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Mayor O'Neill noted the application does not propose development of the parcel and believed
Mr. Cotton will have time to meet with the owner regarding the trees.
In response to Council questions, Deputy Community Development Director Campbell reported
several lots on the block were subdivided in an almost identical fashion prior to the City's annexation
and noted that staff has referred to the precedent as a way of indicating the proposed subdivision is
compatible with the area. Further, future development of the resulting lot would be subject to R-1
zoning standards and could be a large house or a house and accessory dwelling unit but not a
multifamily dwelling, stated that an application to develop the lot would be subject to the usual
Planning Division review, noted that this type of proposal is not common but reflects the area, and
added that, if Council feels the subdivision is inappropriate for the community, it does not have to
approve the application.
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Motion by Council Member Muldoon, seconded by Council Member Herdman, to a) find
this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section
15303 under Class 3 (New Construction) of the CEQA Guidelines, because it has no potential to
have a significant effect on the environment; b) adopt Resolution No. 2020-89, A Resolution of the
City Council of the City of Newport Beach, California, Approving General Plan Amendment
No. GP2020-003 for a Residential Subdivision Located at 2400 Santiago Drive (PA2020-041); and
c) adopt Resolution No. 2020-90, A Resolution of the City Council of the City of Newport Beach,
California, Approving Tentative Parcel Map No. NP2020-007 for a Residential Subdivision Located
at 2400 Santiago Drive (PA2020-041).
With Mayor Pro Tem Avery voting "no," the motion carried 6-1.
18. Ordinance No. 2020-26: Short Term Lodging Amendments to Chapter 5.95 and Title 21 of
the Newport Beach Municipal Code (PA2020-048) [100-20201
Mayor O'Neill recommended Council discuss provisions specific to Newport Island separately and
direct staff to return with modifications because public comments have suggested the proposed
amendments are insufficient. City Attorney Harp advised that the recommendation is appropriate.
Mayor O'Neill acknowledged that the good operators wanted to obtain the City's support while
balancing the needs of residents and visitors.
Council Member Herdman reported that the Ad Hoc Committee on Short -Term Lodging (STL) has
been working on this issue for 20 months, held ten community meetings and more than 20 ad hoc
committee meetings, and heard from the community, property owners, and STL owners, stated that
Council has adopted an ordinance that regulates the STL industry and that allows staff to collect
data on problem units, believed the City has the tools and means to eliminate problem units, assured
that good operators have nothing to worry about, and emphasized that Council is responsible for
protecting the well-being of residents.
Council Member Brenner noted comments from STL operators supporting a six -night minimum, the
cap will not negatively impact current STL operators, and good operators appreciate the ordinance.
Council Member Dixon stated that engagement with management companies and residents has
been intensive, noted that the STL topic has been before Council for four or five years, believed the
four -night minimum stay requirement for Newport Island is almost impossible to enforce, stated
the answering service is not a legal enforcement mechanism, noted that residents are looking to the
City to enforce the Code, affirmed that the ordinance contains the good operators' requirements for
a minimum age of 25 years and a good neighbor policy, and stated that the City ha& not assessed
the negative environmental impacts of STLs on the community.
In response to Council Member Dixon's questions, Community Development Director Jurjis advised
that the Coastal Commission believes STL units are low-cost visitor accommodations and wants to
preserve the units in any Coastal Zone, stated the majority of complaints to the hotline concern
noise, and noted that staff investigates all complaints, but code enforcement officers need evidence.
Police Chief Lewis indicated police officers enforce after -hour parking violations and notify code
enforcement of citations or advisements that are issued. Community Development Director Jurjis
related that code enforcement resources appear to be enough and that staff will assess resources
over time.
In response to Mayor O'Neill's questions, Community Development Director Jurjis reported the ad
hoc committee worked through and analyzed the cap, looked at the number of permits issued and
the number in process and added a little more for a total of 1,550, stated that if Council approved a
cap of 1,550, the ad hoc committee wants to amend the emergency ordinance to allow the issuance
of permits up to the cap, reported approximately 30 citations not related to COVID-19 have been
issued to STL owners in the past two years, noted that Government Code requires a six-week review
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by the public before Council or a discretionary body takes a look at a Local Coastal Plan (LCP), and
confirmed that staff published an LCP notice six weeks prior to any consideration and is not required
to do another six week notice if the LCP is changed. Mayor O'Neill did not believe there is
justification for the emergency ordinance and disagreed with staff regarding the six-week notice for
an LCP.
Council Member Brenner expressed concern that the number of STL units in the Coastal Zone will
increase by 60 units, stated that the ad hoc committee has a pro-business approach and did not want
to eliminate STLs, noted that the Police Department has to address crimes before STL complaints,
but Council has to address citizen complaints.
Council Member Herdman noted the ordinance has various infractions that can result in a citation,
and two citations in a year can result in permit revocation. In response to Council Member
Herdman's questions, Community Development Director Jurjis reported that the City cannot
implement any ordinance revisions until the Coastal Commission approves them and if Council
amends the emergency ordinance to remove the ban, staff will issue the permits in process.
In response to Council Member Dixon's questions, Community Development Director Jurjis advised
that a majority of the City's 4,000 hotel rooms are located in the Coastal Zone, stated that the
number of units indicates the City's hospitality industry is very strong, confirmed that compared to
cities of similar size, Newport Beach has the highest number of STL units.
Council Member Brenner expressed concern about the transferability of permits because an STL
permit could increase the value of the property and lower the value of surrounding properties.
Council Member Muldoon believed complaints can easily be resolved if code enforcement officers
work later hours or investigate a complaint without a police officer and impose hefty fines.
Mayor O'Neill believed imposing a cap would result in inequities, noted that there are many ways
to transfer property without changing ownership, provided examples, and stated that some changes
in ownership are benign.
Council Member Herdman noted an STL permit must be renewed annually and advised that the
permit is not owned. Mayor O'Neill indicated an individual could not transfer ownership of his
property without losing the STL permit, but an entity could. Council Member Herdman suggested
transferability should be handled separate from the cap, the minimum night stay, and parking
requirements. Mayor O'Neill believed the cap and transferability must be considered together.
Council Member Brenner agreed that these issues should be discussed and considered further.
In response to Council Member Dixon's question, Community Development Director Jurjis
requested that the Mayor conduct a straw poll to determine whether staff returns with an
amendment to the emergency ordinance to eliminate the ban on STL permits if Council wants to
continue the transferability issue. Council Member Dixon noted noise and parking are the critical
pillars of the problem, but service personnel facilitating the rapid turnover of units is also a problem,
stated that eliminating the cap will place an enormous burden on public safety personnel, and
believed the City has issued permits without considering the intensification of traffic and the
impacts on neighborhoods.
Council Member Muldoon reiterated that all STL rules will be irrelevant if they are not heavily
enforced, which would alleviate problems.
Council Member Brenner indicated that people are constantly telling Council Members that rules
and ordinances are not being enforced and stated that enforcement is the key to any plan for STLs.
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Council Member Herdman concurred with Council Member Muldoon's suggestions and stated that
members of the ad hoc committee are advocating for residents in their districts who are being
negatively impacted by STLs.
Mayor Pro Tem Avery noted the same problems have occurred in the Harbor and on the Boardwalk,
believed the Police Department does not have the resources to enforce every regulation and code
enforcement does not have sufficient resources, and suggested that, with training, the City's park
rangers could help with enforcement.
Council Member Dixon pointed out that the issue is how to respond to the residents' pleas for help,
hoped Council can approve a cap for a period of three years in order to stabilize the community, and
preferred to delay the discussion about transferability.
Council Member Muldoon appreciated the City's complaint -based system of enforcement and
suggested Council consider alternatives to enforcement if staffing is not sufficient.
Mayor O'Neill opened the public hearing.
Carol McDermott, representing Craig Batley, Aaron Batley, Jeff Bosson, and Don Abrams believed
the Planning Commission rejected phase 2 because they felt it infringed on coastal access and was
unfair to some property owners, reported the hotline is not working effectively, phase 1 continues to
create confusion, the workshop will not get the input Council wants, noise and parking issues come
down to enforcement, STL guests do not overburden City services or impact traffic, confusion about
some of the provisions requires a continuance of the item, limiting STL permits to 1,550 infringes
on the industry, using the number of bedrooms is a better measurement than square footage for
limiting occupancy, eliminating the cap could eliminate the need for an LCP amendment, the
number of valid permits may be inflated, and suggested including two representatives of the STL
industry on the ad hoc committee.
Jim Mosher indicated he submitted a question regarding the six week noticing to the legal counsel
for the Coastal Commission, stated that a draft of the proposed ordinance was not posted six weeks
in advance, noted that the Coastal Act contains noticing requirements for hearings on LCP
amendments, believed a lottery is the one equitable way to deal with a limited number of permits,
and stated that, if Council includes two STL representatives on the ad hoc committee, it will have
to notice public meetings in accordance with the Brown Act.
Gary Cruz hoped Council would consider the concerns of Newport Island residents, expressed
concern the sense of community is changing, and believed increasing enforcement with new hires or
a contractor is a good idea. s
Mark Markos stated it appears there have been 30 to 40 code violations in the last 45 days, but no
citations have been issued, opposed STLs on Newport Island, and noted support for a ban on STL
permits.
Carmen Rawson agreed with Council Member Muldoon's comments regarding enforcement, opposed
the provision which holds owners responsible for violations, and requested that the Police
Department explain the procedure for issuing a citation.
Scott McFetters commented that enforcement does not work on Newport Island, 90 percent of
residents are permanent, lot sizes, parking, and streets without sidewalks are not appropriate for
STL use, and believed banning STLs or requiring them to be owner -occupied may be a solution.
An unidentified speaker indicated her experience renting to guests via Airbnb and noted she has no
problems with STL tenants.
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Nancy Scarbrough agreed with most of the provisions in the ordinance, noted that on September 6,
2020, a majority of Council supported a minimum night stay and a permit cap, commented that
without community input, the Mayor added transfer of permits via inheritance and property sale,
which Council also supported, believed the provisions should not be considered because the public
has not provided input and the ad hoc committee has not considered them, and stated that the
provisions will turn into a property right that no fixture Council will be able to remove.
Mayor O'Neill stated the accusation of a backroom deal is obscene and not accurate, and confirmed
that transferability and a cap have to be addressed together.
Council Member Muldoon added that he had not addressed the provisions prior to the Council
meeting, the provisions are standard legal language, and stated that he has no financial interest if
he supports the language.
Scott Carpenter, iTrip Vacations, believed that a cap of 1,550 permits seems arbitrary and that a
cap of 2,000 units might be more appropriate, suggested that, if a STL unit does not pay more than
$1,000 in Transient Occupancy Tax (TOT) per year over a two-year period, the permit is revoked
and Council should consider removing the ban on new permits, and commented that the parking
violations shown in the pictures on Newport Island should be enforced.
Ms. Fine, Airbnb, supported reasonable regulations for STLs that protect public safety and preserve
neighborhood integrity, stated that STL is a way to expand access to the coast, and encouraged
Council to eliminate the minimum night stay requirement.
Michelle Baccaro believed that STLs have been on Newport Island for more than 100 years, found
long-term rental tenants to be more trouble than short-term rental tenants, and a property with a
STL permit has a higher value than a property without a permit. She suggested that Council also
provide a hotline phone number for long-term rentals.
Denys Oberman supported placing a cap on the number of STL permits, agreed with Council
Member comments about enforcement, and requested Council provide clear directions to the Police
Department regarding enforcement.
Rob Wright hoped to purchase a home in Newport Beach with an STL unit and believed parking is
a problem for long-term tenants rather than short-term tenants.
Lucinda indicated Newport Island is currently louder and has more traffic than in the past.
Joe Bo werbank appreciated the four -night minimum stay provision and the complaint hotline,
believed the ordinance is not working, and believed STLs will not work on Newport Island.
Randy Beck advised that he bought his property believing that the STL permit would be
transferable, expressed concern that the City is changing the rules without providing a deadline,
and stated that residents work out parking issues amongst themselves.
Jim Maloney explained that STL permits were not renewed for R-1 properties, believed any cap
needs to be adjusted to market needs, many of the provisions for Newport Island will not change the
complaints, the City should hire inspectors with permit fees and TOT revenues, and disagreed with
the characterization of STLs as an explosion.
Bud Weasley discussed the deterioration of quality of life and the loss of privacy and community,
and believed permits should not be transferred with the sale of a property.
Ray Beaton believed STL is a business that affects neighborhoods and Council should treat it like a
business.
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Penelope Gilbert indicated her property is surrounded by STL units and believed that the units on
Newport Island should be owner -occupied and owner -managed.
Ken Rawson expressed concern that STL owners will be responsible for paying parking citations
issued to their tenants.
Rob Ryan did not believe the Peninsula has changed since the 1990s, but suggested that Newport
Island may need its own rules.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Council Member Herdman noted that the ad hoc committee discussed particular units having to pay
a certain amount of TOT on an annual basis and believed that a STL permit should not be revoked
because the unit does not rent, as it is not the fault of the owner.
In response to Council Member Brenner's questions, Community Development Director Jurjis
reported STL units are allowed in R-2 and multi -family zones but not in single-family, mixed-use,
and commercial zones, the potential for 10,000 STL units would not affect all of the City, square
footage is a uniform method for limiting the occupancy of any type of unit, limiting occupancy based
on the number of bedrooms could lead to property owners adding bedrooms to a unit that cannot
accommodate a large number of bedrooms, a template for a nuisance policy is available on the City's
website, and the City does not have the authority to evict tenants immediately.
In response to Mayor O'Neill's question, City Attorney Harp explained that under the ordinance, a
STL owner would not be responsible for paying a ticket issued to another party for a parking
violation. Further, in accepting a STL permit, the owner is agreeing to be responsible for where
tenants park within 100 feet of the unit, and a notice of violation will be issued prior to a citation.
In response to Council Member Muldoon's questions, City Attorney Harp advised that the City does
not get involved in the relationship between the landlord and the transient user, and staff may
include in the nuisance abatement plan a requirement for operators to include an immediate
eviction clause in its lease agreement. City Manager Leung reported the Police Department and a
contractor handle parking enforcement. Finance Director Matusiewicz indicated the contract may
require the contractor to patrol STL areas more frequently without charging additional fees, the
Police Department may dispatch the contractor directly, and the contractor cannot issue citations
for Vehicle Code violations, only Municipal Code violations. City Manager Leung added that staff is
discussing a reallocation of contract resources to focus on these types of violations in STL areas and
if additional resources are needed, she will advise Council.
Council Member Dixon liked the suggestion of requiring owner -occupied and owner -managed for
units on Newport Island, stated that the ad hoc committee supported the provision to cite the owner
for tenant parking violations because police cannot determine where vehicles belong, suggested
Council consider requiring one onsite parking space per unit and the towing of illegally parked
vehicles, restrict permits to R-2 properties only, provide a flexible cap, maintain the ban on issuing
permits for Newport Island, and enforce parking regulations. In response to her question,
Community Development Director Jurjis indicated staff has received complaints about the hotline
and the vendor is addressing them, and stated that limiting STL to R-2 properties is acceptable with
abatement and a grandfather program for properties holding a permit.
Mayor Pro Tem Avery believed defining ordinance provisions will be difficult, the City needs a better
partnership with STL operators more than enforcement, supported including provisions that will be
effective, believed towing vehicles may not be allowed, commented that operators need to be located
in California, and noted that many local operators do a good job managing STL units.
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Council Member Duffield appreciated the ad hoc committee's many hours of work, concurred with
Council Member Muldoon's comments regarding enforcement, believed Newport Island needs its
own rules, and supported a requirement for owner -occupied and owner -managed on Newport Island.
Mayor O'Neill noted four operators, who represent more than a third of the rental units, do not
support the ordinance as currently written, expressed concern about the Coastal Commission
accepting the LCP amendment as written, clarified the challenges of drafting language for a cap
and transferability clause, stated that Council needs the support of good operators, and believed
modifying the emergency ordinance will require multiple meetings.
Council Member Brenner wanted to move the ordinance forward with the transferability language
in order to begin the process for Coastal Commission approval and Council can amend the ordinance
as needed.
Motion by Council Member Brenner, seconded by Council Member Dixon, to a) find this
project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065
of CEQA and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The proposed
action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no
potential to have a significant effect on the environment; b) waive full reading, read by title only,
introduce Ordinance No. 2020-26, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Portions of Chapter 5.95 of the Newport Beach Municipal Code Relating to
Short Term Lodging, and pass to second reading on October 27, 2020; and c) adopt Resolution
No. 2020-91, A Resolution of the City Council of the City of Newport Beach, California, Authorizing
Submittal of Local Coastal Program Amendment No. LC2020-007 to the California Coastal
Commission, an Amendment to Title 21 (Local Coastal Program Implementation Plan) of the
Newport Beach Municipal Code Related to Short -Term Lodging (PA2020-048).
Mayor Pro Tem Avery compared STL permits to mooring permits, and believed a lottery is a good
idea and preferable to the transferability language.
Council Member Dixon supported the language for transferring ownership through a family trust
and to an immediate family member, and suggested a time limit could be imposed in addition to a
three -night minimum stay, the cap of 1,550 units, a minimum age of 25 years for tenants, and
requiring owners to be responsible for parking violations.
Council Member Herdman reported extensive surveys were conducted of cities and did not find any
transferability policies, and stated Council needs to determine if the Coastal Commission will
approve the cap and a three -night minimum stay.
In response to Council Member Dixon's question, Community Development Director Jurjis advised
that staff can discuss the issues with Coastal Commission staff.
Council Member Muldoon indicated he supports lifting the ban on STL permits, but opposes the
ordinance.
City Attorney Harp proposed amending Condition of Approval 23 to state, "The owner shall ensure
that any transient user or transient user's guest complies with state or local law."
Council Members Brenner and Dixon accepted the amendment.
With Mayor O'Neill, Mayor Pro Tem Avery and Council Member Muldoon voting "no," the
motion, as amended, carried 4-3.
City Attorney Harp requested Council consider whether provisions for Newport Island will include
a grandfather clause.
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Council Member Dixon proposed maintaining the freeze on permits for Newport Island until the
City shifts to owner -occupied and owner -managed. City Attorney Harp advised that the ban on
permits is tied to the emergency; if the emergency demands a freeze on permits, then the freeze is
appropriate, as the ban is not a moratorium. Mayor O'Neill clarified that Council Member Dixon is
not proposing an emergency ordinance but an ordinance. City Attorney Harp reported Council could
propose a moratorium or modify the ordinance.
Mayor Pro Tem Avery inquired about a transition point for Newport Island. Council Member Dixon
suggested enforcement of parking and noise regulations begin immediately and suggested that staff
can return with a proposed ordinance at the next Council meeting.
In response to Council Member Brenner's question, City Attorney Harp suggested Council allow
existing permitholders ten years to amortize out. Council Member Dixon noted existing
permitholders may continue to operate if they transition to owner -occupied and owner -managed.
Council Member Herdman questioned whether requiring owner occupancy and management would
accomplish Council's goals for Newport Island. Council Member Dixon assumed conditions would
improve with owner occupancy and management of units.
Mayor Pro Tem Avery stated some property owners would have to move into the home in order to
comply. City Attorney Harp added that some property owners may choose to sell the home rather
than move into it, but a sale could require some time.
City Attorney Harp suggested staff return with a draft ordinance with options.
Council Member Brenner indicated Coastal Commission approval could take a year and, if the
Council allows a year, property owners would have two years.
Council Member Herdman advised that some STL units are rented for the entirety of 2021, so
24 months is probably the best way to go.
City Attorney Harp advised that a transition period that interferes with owners' contractual
relationships would create issues.
Council Member Duffield related that, if there was a way to fund additional enforcement, he could
support a 24 -month transition, as residents are suffering and their property values are plummeting.
With Council Member Muldoon voting "no," there was a 6-1 straw vote to issue no new
permits on Newport Island.
With Council Member Muldoon and Mayor O'Neill voting "no," there was 5-2 straw vote
to require short-term lodging on Newport Island to transition to owner -occupied and
owner -managed within 12 months after Coastal Commission approval.
Mayor O'Neill recessed the meeting at 9.05 p.m. and reconvened at 9.16 p.m. with all
members of the City Council in attendance.
XVIII. CURRENT BUSINESS
19. Resolution Nos. 2020-92 and 2020-93: Authorizing an Appeal of the Regional Housing
Needs Assessment and Amending the Purpose of the Housing Element Update Advisory
Committee [100-2020]
Community Development Director Jurjis presented a map to demonstrate that only 45% of the City
is not impacted by constraints and discussed the methodology, COVID-19 impacts, and the timeline.
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Mayor O'Neill reported he has been working with other cities and the Southern California
Association of Governments (SLAG) representative to draft a letter asking SCAG to re-form its
litigation committee to consider filing litigation against the California Department of Housing and
Community Development (HCD) to reduce the allocation.
Community Development Director Jurjis advised that the HEUAC is busy with the Housing
Element and opportunity sites, so the Chair does not believe the HEUAC has the capacity to focus
on the Circulation Element, stated that work needs to begin on the Circulation Element, noted that
the Planning Commission is authorized to review all aspects of the General Plan and make a
recommendation to the City Council, and reported that staff recommends the Planning Commission
update the Circulation Element.
In response to Council Member Brenner's questions, Community Development Director Jurjis
indicated a few Planning Commissioners are interested in participating in the HEUAC's outreach
subcommittee, Tony Petros of LSA is serving as the consultant, and the Planning Commission can
form ad hoc committees to engage community members and experts.
Mayor O'Neill referred to the Orange Coast River Park Conservancy letter suggesting the City focus
on open space and noted that while each element deserves its own review, unfortunately, the
Housing Element is the primary focus.
Council Member Dixon agreed that citizens should be involved and recommended Council direct the
Planning Commission to supervise and work with a community -centered transportation/circulation
ad hoc committee.
Council Member Brenner believed it would be simpler for Council to appoint a committee that is
focused on circulation. Community Development Director Jurjis expressed concern about staffing
another committee and believed that involving the Traffic Affairs Committee would complicate
matters.
City Manager Leung stated that Mr. Petros knows the history of the City and has the necessary
technical expertise, the Planning Commission has to review the Circulation Element Update at
some point, and the Planning Commission is a forum for public review.
Council Member Dixon inquired if anyone on the Planning Commission has circulation or
transportation expertise and acknowledged the Planning Commission's regular workload.
Council Member Brenner commented that traffic is a fundamental issue for the community, and the
Council should not base its decision on staff resources.
Mayor O'Neill clarified that the Planning Commission is needed to obtain public comment and
stated staff time will be better spent on the Housing Element Update with the consultant providing
expertise.
Jim Mosher discussed the Housing Action Plan, the resolution of tasks on the list, staffs proposal
to transfer the Circulation Element to the Planning Commission, the Planning Commission
reviewing work it has authored, and Public Works staff working with a citizens committee on the
Circulation Element.
Hoiyin Ip suggested staff search for residents who want to contribute to the Circulation Element
while Council decides if it wants the Planning Commission or another committee to update the
Circulation Element.
Mayor O'Neill recalled that no applications were submitted to create a circulation subcommittee for
the Housing Element. In response to his question, Community Development Director Jurjis
confirmed that traffic engineers from Public Works would work with the Planning Commission's ad
hoc committee. Mayor O'Neill thanked staff for their effort in preparing the appeal letter, but
questioned the effectiveness of the letter given that all cities will be filing appeals.
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Motion by Mayor O'Neill, seconded by Council Member Muldoon, to a) determine this action
is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2)
and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to
the environment, directly or indirectly; b) adopt Resolution No. 2020-92, A Resolution of the City
Council of the City of Newport Beach, California, Authorizing the Filing of an Appeal of the Southern
California Association of Governments Final Draft Regional Housing Needs Assessment Allocation
for the City of Newport Beach Sixth Cycle Housing Element (PA2018-225); c) adopt Resolution
No. 2020-93, A Resolution of the City Council of the City of Newport Beach, California, Amending
the Purpose and Responsibilities of the Housing Element Update Aduisory Committee Related to the
Circulation Element of the General Plan and Delegating those Responsibilities to the Planning
Commission; and d) authorize the Mayor to send letters to SCAG in support of other Orange County
cities' RHNA Allocation Appeal.
The motion carried unanimously.
20. Coronavirus (COVID-19) Update [100-2020]
City Manager Leung utilized a presentation to discuss the California Blueprint for a Safer Economy,
Orange County's tier status and trends, the reopening of City facilities, Small Business Relief Grants,
and Community Development Block Grant (CDBG) economic development grants.
Mayor O'Neill noted hospitalizations continue to be low.
XX. MOTION FOR RECONSIDERATION - None
XXI. ADJOURNMENT - 10:00 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
October 8, 2020, at 4:00 p.m.
Leilani I. Brown
City Clerk
Will ff IN ein
Mayor
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