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HomeMy WebLinkAbout01 - MinutesDecember 8, 2020 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Minutes Study Session and Regular Meeting November 24, 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 Kevin Muldoon Absent: Council Member Jeff Herdman IL CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Update on City's Residential Refuse and Recycling Collection Program Public Works Director Webb introduced William O'Toole of Economics and Dean Ruffridge of CR&R. Deputy Public Works Director Martin used a presentation to discuss solid waste management in the City, changing laws regarding solid w,j& collection, recycling and disposal, the City's recycling status, Citywide residential ref lection, and the current two -cart collection system. In response to Council questions, Deputy Public Works Director Martin indicated the Material Recovery Facilities (MRF) are operational, stated that the residential dry cycle diversion rate is slightly less than 50% and needs to be more than 50%, and noted that, in order to comply with State mandates, the City needs to m the contract to reach the needed level of program deployment. 4111 Deputy Public Works Director Martin continued the presentation with program additions needed to accommodate changes in State law, proposed collection and processing modifications, a proposed three -cart opt'n, and the ability to meet the diversion rate. In response to Council questions, Deputy Pilic Works Director Martin advised that the current hauler is moving amay from the three -cart system, and the State mandate favors a three -cart system, noted that some households -do not have blue carts because State mandates were not as strict when jiey were originally issued, stated that with legislative changes, blue carts are now mandatory ddedt full program implementation will require green carts for every household. Mayor O'Neill noted thIF Council has tried to not require three carts, and the main concern is implementation throughout the City. In response to Mayor O'Neill's question, Deputy Public Works Director Martin explained that the options for processing material is becoming more limited such that a two -cart blended system is challenging. Mr. O'Toole stated that the City needs to provide organic service to each resident because organics cannot be separated if mixed with recyclables or trash, noted that the City will not meet the requirement to separate organic waste with the two -cart system, and confirmed that CR&R has reached the same conclusion. In response to Council questions, Deputy Public Works Director Martin reported staff researched using a split -body truck that can collect and haul two different types of material, but it is expensive and CR&R does not use this type of truck. He stated that, when the Municipal Code is updated, enforcement can be utilized where education has not been successful, noted that 18 months is the recommended length of time to fully implement a successful program, believed residents have to be more selective about managing their carts, handling their trash and breaking it down with the three -cart system. Public Works Director Webb added that residents may use two smaller cans rather than one large can. Deputy Public Works Director Martin related that staff will work with residents who need more cans and discuss with Council about options for providing multiple cans. Volume 64 - Page 570 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Deputy Public Works Director Martin continued the presentation with an overview of preliminary pricing received from CR&R, contract unknowns, negotiation options, and proposed costs per household. In response to Council questions, Deputy Public Works Director Martin indicated there are other cities that have implemented similar programs and CR&R has contracts with some of those cities, stated that the City can provide blue cans now so that residents can begin putting material into the correct cans and sorting excess waste. Mayor Pro Tem Avery believed residents should be made aware of ways to reduce waste, the City should impose penalties for large amounts of trash, businesses operating group homes in neighborhoods that are for-profit businesses should not be paying a residential rate, and a program that educates and is supported by residents will help with compliance. Mayor O'Neill noted shopping local would decrease packaging and waste. In response to Council Member Brenner's questions, Deputy Public Works Director Martin reported that, through education and outreach, staff will i8aotential tify and address residents' needs. Public Works Director Webb added that staff has discussed valet service for residents who need assistance, options for cost recovery, and noted that Council will take action on this during Item 20. Deputy Public Works Director Martin related that some cities have an exclusive franchise under which one hauler collects all refuse and noted that the City currently operates under an open franchise. Public Works DirectWebb cl ified that an exclusive franchise could potentially reduce the number of trucks and p vide lesskhoice, but may result in a lower cost. Council Member Duffield shared hiso ervations and support of sorting refuse in Oregon, which starts in the kitchen. Council Member Dixon indicated a successfuAgram will require education and behavior change, the program will be he environment and lower operating costs, and noted that the City of Brooklyn fines re wi0ontinued pick up refuse if it is not sorted correctly. Deputy Public Works Director Marti the presentation with a comparison of residential organics programs in Orange County cities and options for residential refuse service (Item 20). A4 11 Mayor O'Neill noted that le is a member of the Residential Refuse Ad Hoc Committee, along with Council Members Brenner and Dixon, and recommended a hybrid of Options 1 and 2, stated that the responses to a Request for Proposal (RFP) would include uncertainty premiums, confirmed his preference would be to approve an extension (Item 20) to provide time to reach a deal with CR&R by'Whe second meeting in January or make a recommendation to go out to an RFP, or both, and concluded by suggesting staff present the best offer from CR&R and bring it to Council and, if it is not approved, Council would initiate the RFP process knowing the responses may be higher without the reconciliation concept. In response to Council Member Dixon's questions, Deputy Public Works Director Martin indicated the City of Laguna Beach uses Waste Management and stated that negotiations can address some additional cost adjustments, but the bulk of negotiations have been concluded. Council Member Dixon concurred with the Mayor's recommendation. Deputy Public Works Director Martin concluded the presentation with a discussion of exclusive commercial refuse collection zones, five different haulers driving through Marine Avenue and Corona del Mar daily, potential resolutions for truck -impacted areas, and exclusive commercial franchise zones. Volume 64 - Page 571 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Council Member Brenner advised that she spoke to the Corona del Mar Business Improvement District (BID), merchants, and residents, regarding interest in exclusive commercial zones because the trucks are problematic for residents. She believed that putting this out to bid and having different haulers compete for the rates might save businesses money and the convenience makes it worth considering, and questioned whether Council should look at the possibility of having one hauler for both residential and commercial services. Mayor O'Neill preferred to discuss this further at the ad hoc level, was open to having the conversation, but wanted to stay focused on residential hauling. Nancy Scarbrough asked if Council has considered service for Accessory Dwelling Units (ADU) and new restrictions on trucks and fuels, and suggested placing short-term lodging in the business category. Hoiyin Ip thanked staff for undertaking a tough project, noted Laguna Beach residents use three carts, agreed with changing to the best possible option now and hoping to change habits, expressed excitement about public education, and suggested associating trash pickup with water quality, shopping local, and environmental justice. Jim Mosher believed this item would have benefited fyom having the presentation published before the meeting, recalled everyone provided their own trash carts and paying a recycling fee prior to the CR&R contract, commented that the vendor is now asking residents to do what they thought they were paying the vendor to do, notbd CR&R serves residential areas in Newport Beach under a separate contract with a two -c rt system and reports achieving 49% recycling in the mixed cart and 100% in the organics cart, questioned why'the City cannot achieve the same results with the same system and whether the City has to reach a 75% diversion goal by 2020, indicated diversion and percentages nothing if the volume of trash is always increasing, believed the State's real goal is to reduce the total poun�of trash taken to the landfill per capita below a certain amount, wondered how he City is doing with that goal, and suggested it would be helpful to know how Waste Management services isolated areas of the City. Charles Klobe recalled the City pitching recycling to residents as optional when the City first contracted for waste hauling and advised that a number of commercial trucks cut through Newport Heights daily ?o ;,each Pacific Coast Highway. In response to 46ayor O'Neill's question, Mr. Ruffridge reported CR&R is involved in providing clean air vehicles and supports changing to electric vehicles by 2035, noted that there currently are no electric trucks that ca2"6omplete a route in one day, stated that electric vehicles are heavier, create more wear and tear on infrastructure, and haul smaller loads, added that technology is not there yet for larger trucks, and confirmed that CR&R is the last company in the county to provide two -cart programs in Newport Beach, Costa Mesa, Stanton and Rossmoor and has proposed changing to a three -cart system. In response to Council Member Dixon's question, Mr. Ruffridge stated that most trucks use Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG), RNG is cleaner than electricity because it has negative impacts on the environment, getting to 75% is tough, and CR&R is the only company with a contract to burn garbage in lieu of coal at cement plants through the Engineered Municipal Solid Waste (EMSW) program. Mayor O'Neill reiterated the thought process behind his recommendation of Option B-1. III. PUBLIC COMMENTS Hoiyin Ip thanked Council Members for attending the Circulation Element workshop and suggested making online workshops more exciting and giving participants homework, a cliff hanger or a takeaway before and after the meetings, and commented that public participation doubled during the Planning Commission Meeting public comment period. Volume 64 - Page 572 City of Newport Beach Study Session and Regular Meeting November 24, 2020 City Attorney Harp reported the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - Council Chambers Conference Room A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957(b)(1)): 3 matters Title: Grace K. Leung, City Manager Title: Aaron C. Harp, City Attorney Title: Leilani I. Brown, City Clerk B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 3 matters Agency Designated Representative (s): Will O'Neill, Mayor; and Brad Avery, Mayor Pro Tem Unrepresented Employees: Grace K. Leung, City Manager- aron C. Harp, City Attorney; and Leilani I. Brown, City Clerk V. RECESSED - 5:22 p.m. VI. RECONVENED AT 6:20 P.M. FOR REGULAR MEETING go VII. ROLL CALL Present: Mayor Will O'Neill, Mayor Pro Tem Bra Ave ouncil Member Joy Brenner, Council Member Diane Dixon, Council Member Jeff Her an, Council Member Kevin Muldoon Absent: Council Member Duffy Duffield VIII. CLOSED SESSION REPORT City Attorney Harp reported th to reportable aC'iions were taken. IX. INVOCATION - May& O'Net X. PLEDGE OF ALLEGIANCE - Council Member Herdman XI. NOTICE TO THE PUBLIC XII COMMITTEE ACTIVITIES Council Member Herdman: • Requested a future agenda item regarding consideration of converting the Water Quality/Coastal Tidelands Committee to a reinstated Environmental Quality Affairs Committee or Commission with expanded responsibilities Council Member Dixon: • Announced the Aviation Committee will meet on December 7, 2020 • Hosted a District 1 townhall meeting on November 19, 2020, which focused on enforcement issues on the Boardwalk and the naming of the new Fire Station • Used a slide to thank the Utilities Department for replacing the 16" water valves Volume 64 - Page 573 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Council Member Muldoon: • Requested a future agenda item regarding holding the Christmas Boat Parade in a safe and responsible way due to the receipt of over 250 support emails Council Member Brenner: • Utilized slides to announce a Corona del Mar Community Survey (newportbeachca.gov/cdmsurvey), that the Police Department is citing and towing vehicles, the Corona del Mar Christmas Walk during the month of December with a storefront holiday lighting and decoration contest (cdmvillage.com), and the Corona del Mar Residents Association Light Up Corona del Mar event (cdmra.org) Mayor Pro Tem Avery: • Utilized slides to announce the Newport Beach Public Library Foundation holiday fundraising campaign (NBPLfoundation.org), support for homeless assistance (newportbeachca.gov/give), and upcoming community engagement opportunities (newporttogether.com) • Announced his mentee, Bruce Bennett, from Newport Harbor High School is shadowing him for the day Mayor O'Neill: • Attended the City Selection Committee, Association of California Cities -Orange County (ACC -OC), the San Joaquin Hills Transportation Corridor Joint P wers Agency (TCA) Board, and Corona del Mar Residents Association meetings, and the bloo held in tCommunity Room hosted by Supervisor Steel and the City • Announced the 75th anniversary of Sugar and pice on Novembe 28, 2020, a groundbreaking ceremony for the new Fire Station on December 8, 2020, and City facility closures on November 26 and November 27, 2020 _ XIII. AGENDA • Consideration of installing disabl�d transfer lifts at Marina Park [Muldoon] All Council Members present goncurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Muldoon reported the time period for him to report business conflicts regarding Item 7 (Resolution No. 2020101: Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area)) has expired. Jim Mosher, addressing Ite 14 (Community Programs Grants and Special Events Grants Updates for Fiscal Year 2020-21), noted some of the events did not take place, believed the recommendation for the Newport Ocean Sailing Association (NOSA) needs clarification, and asked how unused grants are being handled. David Tanner thanked Council Member Herdman for his years dedicated to serving the people of Newport Beach and hoped he would find additional ways to serve the people. Nancy and George Barfield thanked Council Member Herdman for serving on the City Council and appreciated his many accomplishments. Arlene Greer appreciated Council Member Herdman's support of the City Arts Commission and its events. Karen Carlson thanked Council Member Herdman for his service and for supporting the Corona del Mar Library project. Volume 64 - Page 574 City of Newport Beach Study Session and Regular Meeting November 24, 2020 XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the November 10, 2020 City Council Regular Meeting [100-2020] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. RESOLUTION FOR ADOPTION 3. Resolution No. 2020-97: To Terminate the Joint Exercise of Powers Agreement and Dissolve the Joint Powers Employee Benefit Authority Effective at the End of Fiscal Year 2020-21, June 30, 2021 (C-2678) [38100-2020] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment directly or indirectly; and b) Adopt Resolution 2020-97, A Resolution of the City Council of the City of Newport Beach, California, to Terminate the Joint Exercise ofPow Agreement and Dissolve the Joint Powers Employee Benefit Authority Effective at the End cal Year 2!920-21, June 30, 2021. 4. Resolution No. 2020-98: Initiation of Zonin ode Amendment Related to Eating and Drinking Establishments and Health/Fitness Facilities in the MU -DW Zoning District (PA2020-316) [100-2020] Admb- a) Determine this action is exempt from environmental 1Ww under the California Environmental Quality Act (CEQA) pursuant to Section 15262 oft CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and_ b) Adopt Resolution No. 2020-98, A Resolution of the City Council of the City of Newport Beach, California, Initiating Am-endmeni to Title 20 (Planning and Zoning) of the City of Newport Beach Municipal Code Related to Eating and Drinking Establishments and HealthlFitness Facilities in the MU -DW (4lixed-Use DoverlWestcliff) Zoning District (PA2020-316). 5. Resolution No. 2020-99: Acceptance of Grant Funds from the California Department of Alcoholic BevOrage Control's ABC -OTS Grant Program (C-8108-3) [38/100-2020] a) Determine this action is exe pt from the California Environmental Quality Act (CEQA) pursuant to SItions 1506 (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) Accept the ABC -OTS FY 2020-21 grant award in the amount of $17,500, and authorize the Chief of Police to execute grant documents subject to approval as to form by the City Attorney; c) Approve Budget Amendment No. 21-019 to increase revenue estimates by $17,500 in the ABC grant account, No. 01035352-431472-G2102 and to increase expenditure appropriations by the same amount in the Detective Division; and d) Adopt Resolution No. 2020-99, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Acceptance of the California Department Of Alcoholic Beverage Control's FY 2020-2021 Office Of Traffic Safety Grant Program Award, and Authorizing the Chief of Police to Act as "Authorized Agent" to Execute on Behalf of the City Grant Documents Necessary to Secure Payment and Implementation of Grant Funds to Supplement the Police Departments Alcohol Education and Enforcement Efforts. 6. Resolution No. 2020-100: Approval of the 2019 Urban Areas Security Initiative Grant Program Transfer Agreement (C-7042-5) [38/100-2020] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; Volume 64 - Page 575 City of Newport Beach Study Session and Regular Meeting November 24, 2020 b) Adopt Resolution No. 2020-100, A Resolution of the City Council of the City of Newport Beach, California, Approving the Agreement for Transfer or Purchase of Equipment /Services or for Reimbursement of Training Costs for FY 2019 Urban Areas Security Initiative (UASI) Between the City of Santa Ana and the City of Newport Beach; and c) Authorize the Mayor to sign the agreement attached to the Resolution. 7. Resolution No. 2020-101: Petition Certification and Request for Funding for Proposed Underground Assessment District No. 120 (Santa Ana Avenue and Cliff Drive Area) [100- 20201 a) Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding); b) Adopt Resolution No. 2020-101, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 120; and c) Approve Budget Amendment No. 21-020 to advance and appropriate $100,000 from General Fund and increase expenditures in Account No. 66902-941 6 (AD Assessment Engineering). CONTRACTS AND AGREEMENTS 8. Slurry Seal Program — Notice of Completion f ntra 7681-1 (Project No. 201104) [38/100-20201 a) Accept the completed work and authorize the ler, f Notice of Completion for the project; b) Authorize the City Clerk to release thl'L`abor 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 acceetance by the City Council. .MW 9. Concrete Replacement Program (FY 2020-21) — Award of Contract No. 7892-1 (Project No. 211106) [38/100-20201 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(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 7892-1 to S & H Civilworks for the total bid price of $680,000, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $68,000 (10 percent of total bid) to cover the cost of unforeseen work not included in the original contract. 10. Big Canyon Restoration Project — Phase 2A: Contract Contingency Increase, Contract No. 8208-2 (20X12) [38/100-20201 a) Find the requirement for environmental review under the California Environmental Quality Act ("CEQA") is satisfied by the January 22, 2019 Council adoption of Resolution No. 2019-9, A Resolution of the City Council of the City of Newport Beach, California, Adopting Mitigated Negative Declaration No. ND2018-001 (SCH No. 2018081098) for the Big Canyon Coastal Habitation Restoration and Adaptation Project - Phase 2A (PA2018-078), including the Mitigation Monitoring and Reporting Plan, prepared for the Big Canyon Coastal Habitat Restoration and Adaptation Project - Phase 2A (PA2018-078), pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3; and b) Authorize a revised contingency of $353,500 (approximately 36 percent) to cover the cost of unforeseen work not included in the original contract. Volume 64 - Page 576 City of Newport Beach Study Session and Regular Meeting November 24, 2020 11. Corporation Yard Re -Roofing Project — Award of Contract No. 7880-1 [38/100-20201 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1 (rehabilitation of deteriorated facilities) of the CEQA Guidelines, because this action results in no expansion of an existing use; b) Approve the project drawings and specifications; c) Award Contract No. 7880-1 to Chapman for the total bid price of $521,328, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency amount of $53,000 (approximately 10 percent) to cover the cost of unforeseen work not included in the original contract. 12. Amendment No. Two to the Professional Services Agreement with Turbo Data Systems, Inc. for Parking Permit Management and Citation Processing Services (C-8027-1) [38/100- 2020] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve and authorize the Mayor and City Clerk to execute the Amendment that increases the not -to -exceed amount to $1,621,724. 13. On -Call Professional Services Agreement for Phlebotomy Services (C-8414-2) [38/100- 20201 _ a) Determine this action is exempt from the Ca4ifornia 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 an On -Call Professional Services Agreement with California Forensic Phlebotomy, Inc. of Anaheim Hills, California to perform forensic phlebotomy services for a three (3) year term, ending November 23, 2023, with a total amount not -to -exceed $150,000, and authorize the Mayor and City Clerk to execute the agreeme 14. Community Programs Grants Special Events Grants Updates for Fiscal Year 2020-21 [38/100-20201 a) Determine this action is exem from t California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) an00(c)(3) of the CEQA Guidelines because this action will not result i} a physical Chang e environment, directly or indirectly; b) Award $10,00n grant funds to NOSA and $6,000 in grant funds to OC Coastkeeper based on the additiordl information these applicants have provided; and c) If approved for grant funds," authorize staff to execute a six-month agreement with OC Coastkeep -8281-20) and a one-year Signature Event Grant Agreement with NOSA (C -8082-6B). MISCELLANEOUS 15. Planning Commission Agenda for the November 19, 2020 Meeting Receive and file. Motion by Mayor Pro Tem Avery, seconded by Council Member Muldoon, to approve the Consent Calendar; and noting the amendments to Item 1. With Council Member Duffield absent, the motion carried 6-0. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Mayor O'Neill announced that tonight is Council Member Herdman's last meeting. Volume 64 - Page 577 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Assemblywoman Cottie Petrie -Norris provided a video expressing appreciation for Council Member Herdman's service and commitment to the City. Karen Tringali, Corona del Mar Residents Association, acknowledged Council Member Herdman's decades of service to the City, support of the Corona del Mar Residents Association, and work on the Aviation Committee. Nancy Scarbrough appreciated Council Member Herdman's hard work over the past four years, willingness to discuss issues with an open mind, and thoughtful consideration of issues. George thanked Council Member Herdman for his service to the City and for providing valuable information and advice. Charles Klobe acknowledged Council Member Herdman's years of service to the City and hoped he would remain active in City affairs. Sue Dvorak thanked Council Member Herdman for the countless hours he devoted to airport issues and his integrity, honesty, and dedication to residents. Phil Greer acknowledged Council Member Herdman for his dedication, integrity, morals, and ethics. Christine thanked Council Member Herdman for be voice for 'izens and being available to Newport Beach residents. Nancy Alston appreciated Council Member Herdman's service to the community and work on the aviation and short-term lodging committees.* Cora Lee Newman thanked Council Member Herdman for his -T ars of service. Thomas Ladd McGregor thanked CouncVember Herdman. Council Member Dixon expressed gratitude foOa portunity to serve on the City Council with Council Member Herdman and for his �npwledge of Island and work on the Aviation Committee and aviation issues. Council Member M doon looked forward to seeing Council Member Herdman's continued involvement in the community. Mayor Pro Tem Avery apprecia Council Member Herdman's friendship and devotion to the City. Mayor O'Neill thanked Council Member Herdman for his service. Council Member Brenner thanked Council Member Herdman for his passion for the community, thoughtfulness, communication skills, and legacy of public service. She presented a commemorative clock to him and his wife, Sally. Council Member Herdman thanked Council and the public for their kind comments, stated that serving on the City Council has been an honor, and added that City staff are the best people. Council Member Herdman left the meeting at 7:17 p.m. Max Johnson thanked Council Member Herdman for his service to the City and for engaging and representing the community. Nancy Scarbrough noted that none of the Planning Commissioners attended the Circulation Element workshop on November 23, 2020, and believed the workshop was interesting and informative. Volume 64 - Page 578 City of Newport Beach Study Session and Regular Meeting November 24, 2020 XVIII. PUBLIC HEARINGS 16. Ordinance No. 2020-28: Residential Design Standards Amendments to Title 20 and Title 21 of the Newport Beach Municipal Code (PA2019-070) [100-2020] In response to Council questions, Principal Planner Murillo reported that the standard lot width throughout the City is 30 feet, a lot width of 30 feet or less is allowed 20% floor area on the third level, a lot width greater than 30 feet is allowed 15% floor area on the third level, the amendment applies the two foot side step -back to more properties, narrower lots need increased floor area on the third level, therefore, staff recommends maintaining the 20% allowance for 30 foot wide lots, a 25 foot wide lot would be exempt from the requirement for side step -backs, and noted that the typical lot size on Balboa Island is 30 feet by 85 feet. Community Development Director Jurjis added that staff engaged the community and design professionals regarding the amendments and received feedback regarding the narrow lots. He reported that the amendments address mansionization and massing issues, announced the community and design professionals support the amendments, noted that SB 330 constrained staff's ability to change design standards, stated that the amendments address the massing of the third floor but do not reduce the floor area or buildable area, and added that the intent of the amendment is to eliminate the loophole hat allows homeowners to enclose outdoor spaces. Council Member Dixon reiterated that the amendments will notnge buildable square footage or living space. She commended staff for engaging th�neral, profes ' nal and design communities. Mayor Pro Tem Avery indicated the many letters of support ar estament to the Community Development Department's hard work and listening to the community. Council Member Brenner noted that Council Member Herdman brought this issue to Council's attention about two years ago, commended staff for an axi?dzing job, and acknowledged this is not going to make everyone happy, but it is all the City can do. Mayor O'Neill opened the public haring. Jim Mosher supported this, clarified that tito Irside step -back will apply to lots 30 feet wide, and suggested applying the 15% third floor 30 foot wide lots and expressing the step -back as a design standard shat it is more defensible. Hearing no further testimony, Mayor O'Neill closed the public hearing. Principal Planner Murillo indicated staff is comfortable with the current verbiage after reviewing it with the California Department of Housing and Community Development (HCD) and the City Attorney's Office. 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. 2020-28, An Ordinance of the City Council of Newport Beach, California, Adopting Zoning Code Amendment No. CA2019-004 to Amend Title 20 (Planning and Zoning) of the City of Newport Beach Municipal Code Related to Residential Design Standards (PA2019-070), and pass to second reading on December 8, 2020; and c) adopt Resolution No. 2020-102, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2019-006 to the California Coastal Commission to Amend Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to Residential Design Standards (PA2019-070). Volume 64 - Page 579 City of Newport Beach Study Session and Regular Meeting November 24, 2020 With Council Members Duffield and Herdman absent, the motion carried 5-0. 17. Resolution No. 2020-103: Intent to Override the Airport Land Use Commission Finding of Inconsistency for the Residences at 4400 Von Karman Project (PA2020-061) [100-20201 City Manager Leung reported that the item was pulled from the agenda. XIX. CURRENT BUSINE 18. Memorandum of Understanding with the City of Costa Mesa Toward the Funding, Development and Shared Use of its Permanent Bridge Shelter Facility (C-8641-1) [38/100- 20201 City Manager Leung reported Council tasked staff with looking at options for a homeless shelter, the most viable option is a partnership with Costa Mesa to build a permanent shelter within Costa Mesa's city limits, Costa Mesa has started construction on a 70 -bed facility at 3175 Airway Avenue, operations are anticipated to begin in March 2021, Costa Mesa's contribution is approximately $11 million for the property and improvements, the City will contribute $1.6 million for capital and furnishings, $1 million annually for operating costs, and will h ve access to shelter services and 20 beds. She added that the Costa Mesa City Council approv Memorandum of Understanding (MOU) the prior week. Mayor Pro Tem Avery commended staff for achieving agreat o e and a partnership with Costa Mesa and noted the long road to reach this point. 01 Council Member Dixon indicated many thank you's are needed' as t s journey has been going on for the last three or four years, stated that the City is doing the right thing in a humane manner because the homeless population deserve better than to sleep on the sidewalks and streets, and appreciated the efforts of the City of Costa Mesa, Hoag Hospital the HQpleless Task Force, staff, the Mayor and Council. Council Member Brenner expressed amazement at the progress the City has made in the two years she has been on the City Council and how far the City and community have come, noted staff have become experts in dealing�yvith the homeless, population in a humane manner, appreciated the partnership with Costa i esa, believed this project shows how government should behave, indicated everyone has worked together to solve roblem, and stated the community appreciates all the effort. 8 Council Memb on related that the City has reached this point because of the State's inability to deal with its ow problems and a federal court's decision, that the City must provide this service locally in order to enforce local laws, hoped the number of beds would satisfy the court decision, and thanked the Mayor and Hoag Hospital. Mayor O'Neill noted this is, by far, the most expensive part of the approach to ending homelessness on City streets, the Point -in -Time count two years ago was 64, the number is down to the mid-20s due to local efforts, which is not an easy task when there are no shelters to send someone to, and the community is in a different place than it was two years ago. He thanked everyone on the Homeless Task Force, expressed concern that homelessness will explode due to the debt load from not paying rent, believed when the eviction moratorium ends, the City will need a landing spot for some of those renters, and noted this is a way for people to get into permanent supportive housing and programs. He thanked the City of Costa Mesa and City Manager Leung for developing the partnership. Jim Mosher supported the partnership, but felt that skipping staff reports makes following the discussion difficult, stated that Hoag will pay $300,000 a year towards the City's $1 million annual contribution, presumed that Hoag's first and second payments were placed in a trust fund and available for shelter operating costs, believed another Hoag contribution of $400,000 for homeless shelter services will go toward the City's one-time $1.6 million payment, and inquired regarding the source of the $400,000 payment and whether Council has accepted it. Volume 64 - Page 580 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Dennis Bress congratulated the team effort on a long journey, noted the 20 beds and the important wraparound services will help the homeless move forward with their lives, thanked staff, Costa Mesa, and Council for making this happen, and appreciated that the less fortunate are receiving help. Council Member Brenner appreciated every member of the Homeless Task Force for attending the difficult meetings. Motion by Mayor O'Neill, seconded by Council Member Brenner, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) approve the Memorandum of Understanding Between the Cities of Costa Mesa and Newport Beach for the Funding, Development and Shared Use of a Temporary Shelter Facility, and authorize the Mayor and City Clerk to execute the Memorandum of Understanding; and c) approve Budget Amendment No. 21-018, appropriating $1,600,000 and authorize the City Manager to pay the one-time monetary contributions toward the shelter's capital and furniture, fixtures and equipment as specified in the agreement. With Council Members Duffield and Herdman absent motion carried 5-0. 19. Year -End FY 2019-20 and FY 2020-21 Q1 Financia or 00-20201 Deputy Finance Director Montano utilized a pres atiqp to provide an economic overview, summary of General Fund revenues for Fiscal Year (FY) 2019-20 and the first quarter (Q1) of FY 2020-21, COVID-19 impacts to other funds, General Fund expenditure overviews for FY 2019- 20 and Q1 of FY 2020-21, and General Fund sources and uses. City Manager Leung clarified that revenues were higher than projected and resulted in a $12.2�illion surplus for FY 2019-20. Mayor O'Neill stated the question is how to rol back some of fie budget reductions implemented for FY 2020-21. Deputy Finance Director Montano continue presentation with a discussion of an additional pension payment of $5 million. Mayor O'Neil ported the $5 million was budgeted and would not come from the $12.2 million, budget cuts wee implemented in the order of the reduction strategy tiers but stopped at Tier 5, Tier 51/2 would have included the $5 million payment, and fortunately, the City did not ileach that point. He agreed with the recommendation. In response to Council Member Dixon'Oquestion, Mayor O'Neill stated that the $5 million is an extra additional payment, the City has a normal payment and a default payment for the City's unfunded pension obligation and makes a disoxetionary payment on existing obligations, and noted that the $5 million anticipates that the ublic Employees' Retirement System (PERS) will not hit its investment amounts. V In response to Council Member Dixon's question, Deputy Finance Director Montano advised that the 14% decline is due to supplemental taxes coming in lower than in prior years and noted that, since November, they are actually higher than last year, there is no concern, and there has not been a decline in assessed values. Deputy Finance Director Montano concluded his presentation with a discussion of Tier 4 (Internal Service Fund Charges) reductions, recommendation 2, Tiers 1-3, and staff recommendations. In response to Council questions, City Manager Leung related that PERS' numbers lag by two years, PERS' return was 4.7% as of June 30, 2020 when the assumed rate was 7%, staff calculated the shortfall will add about $16 million to the City's unfunded liability, the $5 million payment is critical to paying down that additional amount, and the City can pay down a sizable piece of the $16 million and PERS' charge for the two years the City does not pay the full amount in 21/2 years. Volume 64 - Page 581 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Mayor O'Neill noted the City is doing well in Q1, expressed concern about Q2, encouraged the community to shop local because sales tax dollars will stay with the City. Motion by Mayor O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) review the City Manager's tier framework and approve the associated recommended budget restorations through Budget Amendment No. 21-021, which would 1) appropriate $5 million from the General Fund PERS reserve to make an Additional Discretionary Payment to PERS, as set aside for in the FY 2020-21 Budget, 2) allocate $500,000 from General Fund unappropriated fund balance to replenish the Equipment Replacement Fund, and 3) allocate $2.3 million from General Fund unappropriated fund balance to replenish the General Fund contingency reserve. With Council Members Duffield and Herdman absent, the motion carried 5-0. 20. Residential Solid Waste and Recycling Franchise Update to Comply with State Organics Recycling Mandates - Request for Council Action on Franchise Extension Options (C- 5649) [38/100-2020] Mayor O'Neill reported that Council discussed this duriV the study session and reiterated his recommendation for Option B-1 with the caveat to bring back tle tei ms of a contract with CR&R or an RFP for consideration by the January 26, 20211 City Couil meeting. In response to Council Member Muldoon's question, City Attorney Harp advised that the existing agreement provides that the City can extend t contract and noted that it is not a "no bid" contract. Motion by Mayor O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) provide written notice to CR&R Incorporated of intent to exercise franchise extension on the City Residential Solid Waste Collection & Recycling Contract (C-5649) to a new ending date of October 1, 2021 in order to continue negotiations with the intent to process an amen ment to consolidate -both current contracts (City and Newport Coast) into the City Residential ide C l_Qction & Recycling Service contract (C 5649) and, at the January 26, 2021 City Council meeting, bring back the terms of the contract for Council consideration and, if Council does not agree with the terms, direct staff to prepare and issue an RFP to solicit competitive bids for a fully compliant Citywide Residential Solid Waste Collection & Recycling Services be inning November 1, 2021. With Council Members Duffield and Herdman absent, the motion carried 5-0. 21. Coronavirus (COVID-19) Update [100-2020] City Manager Leung utilized a presentation to discuss statewide trends for October and November, Orange County trends, Newport Beach trends, the State's response of imposing more restrictions and a curfew, and the City's response, including continuing essential services and the Emergency Temporary Use Permit Program. Fire Chief Boyles reminded the community of the proper use of portable gas heaters and indicated the Fire Department anticipates administering COVID-19 vaccinations, but details have not been finalized. Mayor O'Neill reported that the City will coordinate vaccinations with Hoag Hospital and indicated the Fire Department administering vaccinations is good news. Council Member Brenner related that Hoag Hospital recommends that everyone get the flu vaccination as well as the COVID-19 vaccination. Volume 64 - Page 582 City of Newport Beach Study Session and Regular Meeting November 24, 2020 Mayor O'Neill indicated the number of cases has increased over the last 30 days, compared Newport Beach with Costa Mesa, Huntington Beach, Irvine, Anaheim, and Santa Ana, noted the level of increase in Newport Beach has not been as great as in other cities, encouraged everyone to be tested and to patronize local businesses and restaurants, and stated some zip codes are showing case rates above 40, which suggests restrictions are not going away soon. Steve Rosansky, Newport Beach Chamber of Commerce President, noted the difficulty in ensuring that crowds wear masks and maintain social distancing, pointed out the increasing number of COVID-19 cases, and discussed the decision to cancel the Newport Beach Christmas Boat Parade. Council Member Muldoon understood the Chamber's reasons for cancelling the Christmas Boat Parade, but supported holding a smaller parade because people can choose to stay at home, and some need the joy. Mayor Pro Tem Avery agreed with Council Member Muldoon, commended the Newport Beach Chamber for doing the right thing, and encouraged people to make wise decisions and behave responsibly. MOTION FOR RECONSIDERATION - None ADJOURNMENT - 8:41 p.m. The agenda was posted on the City's website an n the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on November 19, 2020, at 4:00 p.m. Will O'Neill Mayor Volume 64 - Page 583