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HomeMy WebLinkAbout10082019_CC_MinutesCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting October 8, 2019 I. ROLL CALL - 4:00 p.m. Present: Mayor Diane Dixon, Mayor Pro Tem Joy Brenner, Council Member Duffy Kevin Muldoon (arrived at 4:04 p.m.) H. CURRENT BUSINESS Will O'Neill, Council Member Brad Avery, Council Member Duffield, Council Member Jeff Herdman, Council Member SS1. Clarification of Items on the Consent Calendar Council Member Brenner indicated she will probably pull Item 6 (Contract with Arts Orange County to Manage Phase V of the Sculpture Exhibition in Civic Center Park) because she has questions about outreach. SS2. Recognition of the Newport Beach Water Polo 14U Junior Olympics Coach Stefano Ragosa noted that all the players are from Newport Beach and Costa Mesa and highlighted their season, and Mayor Dixon presented certificates to the water polo team. SS3. Regional Housing Needs Assessment (RHNA) Update (PA2018-225) Community Development Director Jurjis and Principal Planner Murillo noted State housing law requires cities to plan for future housing needs and provided a presentation to discuss the RHNA process, Southern California Association of Governments' (SLAG) region/jurisdiction, SCAG's methodology, Newport Beach's housing unit need estimate is 2,764, the current proposed method using projected and existing needs, map of existing need factors, graph of social equity adjustment factors, distribution across income levels, the 2021-2028 Housing Element and how to accommodate the anticipated units, map of where the City could accommodate the required growth, what happens if the City adopts a Housing Element that is inconsistent with State law and does not zone for housing, and the City's Legislative Platform which needs updating to possibly include guiding principles and changes related to housing. In response to Council questions, Community Development Director Jurjis and Principal Planner Murillo defined "unit" and noted the City currently has over 40,000 housing units, reported the estimate is based on population growth and what units SLAG believes can be built, discussed SCAG's responsibility relative to growth and the desire to move housing to areas near transit and jobs, reported every jurisdiction completed a survey and the numbers now lean toward building permit issuance, noted the RHNA numbers are for zoning purposes and cities submit annual progress reports, discussed Senate Bill 35, indicated even areas with Covenants, Conditions and Restrictions (CC&R) and homeowner associations might need to be looked at, assured outreach will be conducted regarding zoning changes, discussed how accessory dwelling units factor into the needed units, agreed the timing needs to be determined for this and the RHNA numbers need to be part of the General Plan process, indicated a Housing Element consultant will eventually be hired, and indicated Costa Mesa's housing unit estimate is 4,300, Fountain Valley's is 1,376, Huntington Beach's is 3,600, Laguna Beach's is 55, and Anaheim's is 17,000. Jim Mosher stated SCAG's growth projection webpage indicated that Newport Beach is projected to have a population of 89,300 in 2020 and 92,700 over the next 20 years with the households only increasing by 1,100 when the RHNA number is 2,700, believed questions about what counts toward the RHNA allocation should be addressed to the State, not SLAG, expressed hope that a presentation will be conducted about the amount of added and lost housing in the City, and indicated he supports updating the Legislative Platform only because the current Council Members were not on Council when it was adopted. Volume 64 - Page 213 City of Newport Beach Study Session and Regular Meeting October 8, 2019 III IV General Plan Update Steering Committee Chair Nancy Gardner stated the Committee received a similar presentation and had similar questions, but assured everyone that they are focused on presenting this to the public in order to garner the residents' vision on how to accommodate this. In response to General Plan Update Steering Committee Member Paul Watkins' questions, Principal Planner Murillo explained how the income numbers were derived and noted they can change during the course of the cycle depending on the County's annual median income. General Plan Update Steering Committee Member Larry Tucker expressed concern that the State might divert the City's revenue stream due to how they set up enforcement fines, the details of how this will work are not known at this point, there is no meaningful ability to appeal the Housing and Community Development (HCD) and SCAG numbers, and believed the ' Committee's recommendation will end up being more reactionary to what the State does than a public vision for the City. Hoiyin Ip noted Irvine's range is 16,000 to 20,000 housing units, expressed concern that development will occur if areas of the City are rezoned, discussed the environmental impacts development has on quality of life, believed sustainability needs to be addressed, and questioned whether new homes should be allowed to be fossil fueled homes. Mayor Dixon reported there is currently a bill on the Governor's desk that would add further importance to affordable housing by mandating cities to remove code, zoning and parking requirements. She believed a Legislative Platform update is appropriate, but suggested adding aggressively" before "support" in order to try to maintain the character of the City. PUBLIC COMMENTS Brian Lochrie, Transportation Corridor Agencies (TCA), reported on the new Toll Road sticker thetollroads.com/sticker) that replaces the transponder, how it will eventually be interoperable throughout the nation, and the proper way to dispose of the transponder. Jim Mosher cautioned Council that they can only talk about a purchase or lease in Closed Session during Items IV.A.2 and IV.A.3, and requested that goals for the Council -appointed employees be made public so the public knows what Council is judging them on (Item IV.B). Hoiyin Ip discussed the last City Council meeting, and commended Council on their sincerity and sense of duty. 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. CLOSED SESSION — Council Chambers Conference Room A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code § 54956.8): 3 matters 1. Property: 4200 Campus Drive, Newport Beach, CA 92660 Agency Negotiators: Grace Leung, City Manager Seimone Jurjis, Community Development Director Lauren Whitlinger, Real Property Administrator Negotiating Parties: Avis Rent A Car Systems, LLC Under Negotiation: Price and terms of payment Volume 64 - Page 214 City of Newport Beach Study Session and Regular Meeting October 8, 2019 2. Property: 3175 Airway Avenue, Costa Mesa, CA 92627 APN: 427-091-12 Agency Negotiators: Grace Leung, City Manager Seimone Jurjis, Community Development Director Lauren Whitlinger, Real Property Administrator Negotiating Parties: City of Costa Mesa Under Negotiation: Price and terms of payment 3. Property: 1885 Anaheim Avenue, Costa Mesa, CA 92627 APN: 424-211-12 Agency Negotiators: Grace Leung, City Manager Seimone Jurjis, Community Development Director Lauren Whitlinger, Real Property Administrator Negotiating Parties: City of Costa Mesa Under Negotiation: Price and terms of payment B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (THE CITY COUNCIL WILL MEET TO DISCUSS THE PROCESS FOR THE ANNUAL PERFORMANCE REVIEW OF THE CITY MANAGER) Government Code § 54957(b)(1)): 1 matter Title: Grace K. Leung, City Manager V. RECESSED — 5:02 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon VIII. CLOSED SESSION REPORT City Attorney Harp reported that, regarding Item IV.A.1, Council authorized the real property negotiators to continue to negotiate with Avis Rent A Car Systems, LLC, and regarding Items IV.A.2 and IV.A.3, Council instructed the real property negotiators to continue to negotiate with Costa Mesa. IX. INVOCATION — Pastor Megan Hutchinson, St. Andrews Presbyterian Church X. PLEDGE OF ALLEGIANCE — Council Member Avery XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Avery: Attended a Homeless Task Force Housing Subcommittee meeting, an Orange County Sanitation District Operations Committee meeting, and the 100th anniversary party for the Balboa Ferry Council Member Duffield: Attended the Newport Harbor High School Hall of Fame Inductee Ceremony Requested a future agenda item to consider prohibiting all electric and motorized bicycles and vehicles from the Peninsula boardwalk Volume 64 - Page 215 City of Newport Beach Study Session and Regular Meeting October 8, 2019 Council Member Muldoon: Announced he was a judge at the Corona del Mar Sandcastle Contest with Mayor Dixon and Council Member Brenner Council Member Brenner: Attended the Corona del Mar Business Improvement District meeting, a Solid Waste Recycling Committee meeting with Mayor Pro Tem O'Neill, Art in the Park, the Newport -Mesa Unified School District's State of the Schools Breakfast with Mayor Dixon, Mayor Pro Tem O'Neill, and Council Member Herdman, the Newport Beach Sister City Association Picnic, Wake Up! Newport featuring Congressman Harley Rouda, an Association of California Cities — Orange County (ACC -OC) workshop regarding a primer on permanent supportive housing with Principal Planner Murillo, Homeless Coordinator Basmaciyan, and Homeless Task Force Member Tom Peterson, a Police Department Swearing in Ceremony with Mayor Dixon and Council Member Herdman, and the Corona del Mar Residents Association Executive Committee meeting Judged at the Corona del Mar Sandcastle Contest Met with Irvine Council Member Farrah Khan Along with Homeless Task Force Member Terry Moore, visited the Trellis Life On The Streets (LOTS) program at The Crossings Church and discussed the program Announced that, on October 26, 2019, she will be holding her first Town Hall meeting at the Corona del Mar Fire Station from 9:00 a.m. to 10:30 a.m. to receive feedback about short-term vacation rentals and proposed changes to construction regulations (slide) Council Member Herdman: Attended the City's Annual Employee Health Fair with Council Member Brenner and complimented Human Resources, and a Dunes Hotel scoping meeting Announced he will be conducting a Town Hall meeting on October 14, 2019, at 6:30 p.m. at the Carroll Beek Community Center to receive input relative to short-term lodging, and the Aviation Committee subcommittees are beginning to meet and develop plans of action Complimented City Arts Commission Chair Arlene Greer and the Commission for Art in the Park and the Concert Series, and the Corona del Mar Chamber of Commerce for the Meet and Greet at Sherman Library and Gardens Requested a future study session so the Fire Department could inform the community on what has been done since last year to better prepare for wildfires Mayor Pro Tem O'Neill Attended the Marian Bergeson Excellence in Public Service Series Lunch, the Corona del Mar Sandcastle Contest, Newport -Mesa Unified School District's State of the Schools Breakfast, Fire Service Day, and the Police Department Swearing in Ceremony Announced a TCA meeting and Finance Committee meeting on October 10, 2019, the City Council Ad Hoc Committee on Election Reform public input meeting on October 14, 2019, and the Visit Newport Beach Annual Dinner on October 17, 2019 Mayor Dixon: Attended the Marian Bergeson Excellence in Public Service Series Lunch, a Women in Green forum, the Banning Ranch Conservancy ribbon cutting, the Meet and Greet at Sherman Library and Gardens, Art in the Park, the Corona del Mar Sandcastle Contest, and Concert in the Park Provided the State of the City to the Exchange Club of Newport Harbor Displayed slides to announce a free community fair to kick-off the General Plan Update process and the 3rd Annual Halloween Spooktacular on October 26, 2019 Jim Mosher received confirmation from Mayor Pro Tem O'Neill that he will be holding office hours on October 9, 2019, at the Newport Coast Community Center. XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA Volume 64 - Page 216 City of Newport Beach Study Session and Regular Meeting October 8, 2019 Direct the Parks, Beaches & Recreation Commission to evaluate the feasibility of a community pool that serves recreational & therapeutic needs at Lower Castaways Park Dixon] The City Council unanimously concurred to place the matter on a future agenda. XVI. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 9 (Budget Amendment to Accept a Check from the Newport Beach Public Library Foundation and Appropriate Funds to the Library's Fiscal Year 2019-20 Maintenance and Operation Budget), Mayor Dixon reported that, over the last 10 years, the Friends of the Library has raised and given back $2.5 million to the City and the Newport Beach Public Library Foundation has raised and given back 2 million to offset the City's General Fund to support library resources, programming and activities. She expressed the City's appreciation to both organizations. Regarding Item 10 (Beacon Bay Ground Lease Finance Subcommittee Report), Council Member Brenner announced she had ex parte communication with Finance Committee Member Larry Tucker. Regarding Item 4 (Resolution No. 2019-89: Approval and Award of Professional Services Agreement for Banking and Merchant Card Processing Services with J.P. Morgan Chase Bank, N.A. and Paymentech, LLC), Jim Mosher questioned choosing a bank that is charging more than twice the amount another bank would charge the City over the next 15 years, noted the contract is for five years but the not -to -exceed amount reflects the 15 year contract amount, and believed the amounts listed in the banking services document do not add up with the table in the staff report. Finance Director Matusiewicz noted the difference between the two bank prices was $12,000; however, reported J.P. Morgan Chase Bank is much larger and staff believed their technology would lead to beneficial efficiencies for the City and provide more payment options for the customers. City Attorney Harp added that the contract has been amended to have the Finance Director sign the contract instead of the Mayor. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the September 24, 2019 City Council Meeting [100-2019] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. RESOLUTIONS FOR ADOPTION Resolution No. 2019-88: Certifying Funding Listed in the Federal Transportation Improvement Program (FTIP) [100-2019] 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. 2019-88, A Resolution of the City Council of the City of Newport Beach, California, Certifying that the City of Newport Beach has the Resources to Fund the Project in the Federal Transportation Improvement Program for Federal Fiscal Years 2020121 - 2025126 and Affirming its Commitment to Implement the City Project. Council Member Muldoon voted no on Item 3. Volume 64 - Page 217 City of Newport Beach Study Session and Regular Meeting October 8, 2019 4. Resolution No. 2019-89: Approval and Award of Professional Services Agreement for Banking and Merchant Card Processing Services with J.P. Morgan Chase Bank, N.A. C-8609-1) and Paymentech, LLC (C-8609-2) [381100-20191 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. 2019-89, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Director of Finance to Execute an Agreement between the City of Newport Beach and J.P. Morgan Chase Bank, N.A. in Connection with the City's Banking Services; c) Authorize the Finance Director and City Clerk to execute a five-year Banking Services Agreement with the option to extend for an additional ten years, with J.P. Morgan Chase Bank, N.A., for banking and services with a total not -to -exceed amount of $466,215 over fifteen years ($31,081 x 15); and d) Authorize the Finance Director and City Clerk to execute a five-year Merchant Card Processing Services Agreement with the option to extend for an additional ten years, with Paymentech, LLC, for merchant card services consistent with the fee schedule presented on Schedule A of the Merchant Agreement. Mayor Pro Tem O'Neill recused himself on Item 4 due to financial interest conflicts. CONTRACTS AND AGREEMENTS 5. 2017-18 Streetlight Improvement Project — Notice of Completion for Contract No. 6269 17V02) [381100-20191 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. Council Member Muldoon recused himself on Item 5 due to real property interest conflicts. 6. Contract with Arts Orange County to Manage Phase V of the Sculpture Exhibition in Civic Center Park (C-8463-3) [381100-20191 a) Determine that the action is exempt from the California Environmental Quality Act CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve a contract with Arts Orange County for project management of Phase V of the Sculpture Exhibition in Civic Center Park for a total amount not to exceed $91,436.00, and authorize the Mayor and City Clerk to sign the agreement. 7. Benefits Broker Third Party Administrator — Approval of Professional Services Agreement with Burnham Benefits Insurance Services (C-8610-1) [381100-20191 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 a five-year Professional Services Agreement with Burnham Benefits Insurance Services for Benefits Broker Services at a not -to -exceed amount of $245,000, and authorize the Mayor and City Clerk to execute the Agreement. Out of an abundance of caution, Council Member Muldoon recused himself on Item 7 due to potential business interest conflicts. MISCELLANEOUS 8. Planning Commission Action Report for the October 8, 2019 Meeting [100-201.91 Receive and file. Volume 64 - Page 218 City of Newport Beach Study Session and Regular Meeting October 8, 2019 9. Budget Amendment to Accept a Check from the Newport Beach Public Library Foundation and Appropriate Funds to the Library's Fiscal Year 2019-20 Maintenance and Operation Budget [100-2019] 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. 20-017 to increase revenue estimates by $155,000 in Account 0106051-511085 (Library Foundation Donations) and to increase expenditure estimates by the same amount in Division 0106051 (Library Foundation) and Division 01060604 (Literacy Services). 10. Beacon Bay Ground Lease Finance Subcommittee Report [100-2019] 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 the report. 11. Grants and Donations Report for the Quarter Ending September 30, 2019 [100-2019] 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 the report. Motion by Mayor Pro Tem O'Neill, seconded by Council Member Duffield, to approve the Consent Calendar; and noting the "no" vote by Council Member Muldoon on Item 3, the recusal by Mayor Pro Tem O'Neill on Item 4, recusal by Council Member Muldoon on Items 5 and 7, and amendments to Item 1. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Murphy McCann discussed a bike accident on Clay Street in June 2019, expressed concern for safety and the need for bike lanes and sidewalks in Newport Heights to protect bicyclists and pedestrians, noted his first petition had 300 signatures and the second petition, which had over 160 signatures, deals with the decision making process regarding the safety initiatives, requested that Council listen to everyone and not just people who can attend meetings, listed streets of concern, and assured Council that they have the support of the community to install bike lanes and sidewalks. Teresa Hernandez discussed why the City needs a temporary homeless shelter, expressed support for placing a shelter on the Campus Drive site if the cost is reasonable, suggested joining other cities to create a permanent shelter, encouraged the City to utilize the Corporate Yard for a shelter, and urged Council to do what is in the best interest for its residents. Jennifer Brennan discussed what she witnessed on Tustin Avenue while taking her children to school and asked Council to consider the fear children feel while biking to school. Bret Rosol, Ebb Tide resident, agreed the City needs a homeless shelter but believed the area near the Corporate Yard is over -concentrated, stated he will move if the shelter is placed at the Corporate Yard, took issue with the argument about budget and asked what safety is worth, and encouraged Council to utilize the Campus Drive site for the shelter. Zena Pasqual expressed concern with the amount of traffic generated by and speeding of rideshare services who are not paying attention to the bicyclists. Marc Perkins, Costa Mesa Alliance for Better Streets, expressed support for Murphy McCann and Newport Heights residents, encouraged the City to make the streets safer, believed the solutions do not have to be complicated, and discussed curb extensions. Volume 64 - Page 219 City of Newport Beach Study Session and Regular Meeting October 8, 2019 David Allison expressed support for making improvements to traffic safety, noted he is not comfortable letting his fourth grader walk home even though they live a few blocks from school, and reiterated there is community support to make the safety improvements. Lisa Wright relayed recent bike accident stories that she felt could have been prevented, believed the City has the worst bike accident data, and urged Council to take the appropriate steps toward safety. Russell stated he and his family bike everywhere in the City, believed many of the streets could be safer, requested that Council direct staff to hire a consultant, and noted that other cities have been making pedestrian and bike safety improvements and requested the City do the same immediately. Bill Ashmore discussed the reasons he believed there were protesters in front of the Council Chambers tonight, believed their signs were corporate -generated, questioned why they are protesting when they knew their homes were located across industrial areas, believed the homeless issue is not about housing, and took issue with people still camping at the OCTA Transportation Center. Angela Ashmore stated she made her own signs, believed the protesters' energies are misplaced and encouraged them to attend Costa Mesa City Council meetings, suggested Council Members Brenner and Avery attend Al -Anon meetings, and encouraged the City to open the shelter and protect its citizens. Council Member Brenner indicated she has been an Al -Anon member for over 20 years. Scott Berman stated he does not let his children walk or bike to school even though they live 3.5 blocks away, pointed out that there is more distracted and unsafe driving these days because of cell phones, and noted he has an electric car and it is hard for the bicyclists to hear him. Lyndsay Fox stated she does not allow her children to ride their bikes to school, believed there is so much that can be done to prevent accidents and make it safer in the area, indicated the community supports Murphy McCann's efforts, and agreed that Council should take everyone's concerns into consideration, noting she took the night off so she could attend tonight. Frederick Rawlins stated that Newport Heights is a bike corridor to the beach and schools, urged Council to keep the children safe, and agreed about there being more distracted driving. Alex Powell believed the City is not equipped to deal with the homeless issue and it would do a disservice to the homeless if there were not proper mental health and rehabilitation services, and encouraged the City to do it right and partner with Costa Mesa and Santa Ana. Lorett Corona and her son, Tate, expressed support for Murphy McCann's efforts, asked what it will take to make the changes, relayed close calls around the neighborhood and Ensign Intermediate School, and hoped that showing up on a school night will make a difference. Monique Christensen stated Proposition 47 was supposed to provide money for mental health and rehabilitation, and encouraged everyone to note who they voted for so these issues are avoided in the future. Natalie Machado, Ebb Tide resident, stated her husband designed the signs and everyone chipped in as a community to purchase them, asked Council to consider relocating the homeless shelter from the Corporate Yard, especially since trash is dumped there, expressed safety concerns for Hoag Hospital employees, and asked where the homeless will go during the day. Ryan Janis, Ebb Tide resident, expressed concern for the safety of the neighborhoods and asked what 14 days in a homeless shelter would do for drug addiction and situations that led people to be homeless and whether the individuals will be screened for diseases before entering the shelter. Edward Allebest stated he represents many of the property owners around the airport, noted the City owns over 400 pieces of property it could use for the homeless shelter, understood that every shelter location will have opposition, believed the Campus Drive site is the most costly, would take the longest time to implement, would negatively impact the economy in the area, and is the least compassionate place to put human beings, and encouraged Council to find better solutions. Volume 64 - Page 220 City of Newport Beach Study Session and Regular Meeting October 8, 2019 Anthony Tabarsi announced he is a rehabilitated sex offender, expressed concern for himself and people who live on the streets, and believed the solution is. to talk to the politicians in Washington DC. Christine Nunez believed Council is working in the best interest of the City, discussed how the homeless crisis has affected the City, stated she visited the Peninsula and saw the homeless issues in the area, encouraged the City to continue to find a location for the shelter and offer services for those who want help so the City can enforce its anti -camping laws, and believed some of the issues the City is facing are due to issues at Share Our Selves (SOS). Barbie George read a Daily Pilot article which discussed the cost of Costa Mesa's permanent homeless shelter, Costa Mesa's shelter model, and how there has not been an increase in crime around the shelter in Anaheim. She noted that the City would use a similar model, the model works, but believed the City needs the opportunity to let it work. Albert Lin expressed concern with the City building a homeless shelter near his home and requested the City find a better location than the Corporate Yard since it may increase crime, decrease home values, and create unsanitary conditions. Ryan Reza Farsai expressed support for the City finding a resolution to the homeless issue and keeping it under budget, but suggested looking into housing that is portable or converting shipping containers into residential space. Vladimir Ljubaren noted the influx of motorized vehicles on the boardwalk, even though they are prohibited, believed more enforcement is needed, and stated the boardwalk is the face of the City. Jack Rose, Ebb Tide resident, believed that the Corporate Yard homeless shelter should have been on tonight's agenda if the City declared a crisis or at least provided an update about the homeless crisis, discussed the amount of solid waste the Corporate Yard is permitted to collect, expressed concern that the City wants to place its homeless population there, and requested the City permanently withdraw this location from consideration. Gary Osterberg stated he is in the mobile home park business, believed 50 people can be housed for 600,000 to $700,000, and noted mobile homes provide more location flexibility and can be used for medical and training facilities. Unidentified speaker thanked Murphy McCann and Jack Rose for organizing people to attend tonight's meeting, applauded everyone for attending, and believed the Corporate Yard is not an appropriate location for a homeless shelter. Luke Dru stated that a UCLA study indicated that a major percentage of the homeless have drug and/or mental health problems, suggested painting white speed limit numbers on the roads near the Newport Heights schools, and requested more traffic enforcement and stop signs in the area. Max Johnson noted there is not a perfect location for the homeless shelter in the City, agreed this is a complex issue, and urged people to be involved and volunteer at a shelter. Brandon Caudle urged the City to continue to work with the neighboring cities and the State, move forward with a temporary homeless shelter, and thanked Council for tackling this issue. Council Member Herdman emphasized the importance for child safety and that he wants something to be done while he is still on Council, expressed appreciation to the parents who attended today's meeting, and noted there was a rumor that there was no support for making any changes in Newport Heights. He added that the City is not considering purchasing the Campus Drive property. Council Member Muldoon assured that, no matter where the homeless shelter is located, they will not be able to exit and enter as they please, encouraged everyone to visit Tustin's shelter, and emphasized the City wants to deal with this crisis. He requested a future agenda item to consider installing bike lanes and sidewalks in Newport Heights. Volume 64 - Page 221 City of Newport Beach Study Session and Regular Meeting October 8, 2019 Council Member Brenner noted that, several months ago, she requested an item be placed on a future agenda to look at creating a Traffic Affairs Commission so the City would not be looking at traffic issues piecemeal, suggested incorporating this with the Planning Commission, and indicated traffic needs to be given its due importance. Council Member Avery noted that Newport Heights is in his Council District, reviewed the outreach that occurred in the area, noted residents who attended the meetings opposed installing bike lanes and slowing traffic, indicated he informed Murphy McCann that people needed to show up and demand this type of change, believed the City can install sidewalks in its right-of-ways, and emphasized a majority of the Newport Heights neighborhoods need to make it clear that this is the desire of the community. Mayor Dixon reported Council is wrestling with many issues, including assisting the homeless while keeping the City safe, assured that there will be police presence at the shelter wherever it is located, asked everyone to be patient because they are trying to do what is best for all the residents of Newport Beach, confirmed that the City is working diligently with the negotiating partners, and expressed hope that Council can report back soon. XVIII. PUBLIC HEARING 12. Resolution No. 2019-90: Code Amendment to Allow the Transfer of Development Rights in the Coastal Zone (PA2019-154) [100-2019] Community Development Director Jurjis reported the item is to allow the transfer of development rights in the Coastal Zone, similar to what is allowed in the Zoning Code, emphasized Council has the final decision on any transfer of development rights, and noted there are no requests for transfers tonight. Mayor Dixon opened the public hearing. Jim Mosher expressed opposition to this because he believed transfer of development rights has caused the General Plan to not match what is written, believed the California Coastal Commission will not support this since this would not allow Coastal Development Permits (CDP) in half of the Coastal Zone to be appealed to them, noted the circumstances in which Coastal Commission would allow transfer of development rights, and took issue that this gives special rights to Newport Center. Community Development Director Jurjis noted this is already allowed in the Zoning Code but is missing in the Coastal Zone, and emphasized staff will work with Coastal Commission staff to explain the justification as to why the City is requesting the amendment. Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Council Member Muldoon, seconded by Mayor Pro Tem O'Neill, 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; and b) adopt Resolution No. 2019-90, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2019-003 to the California Coastal Commission to Amend Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code and the City of Newport Beach Local Coastal Program Coastal Land Use Plan Regulating the Transfer of Development Rights PA2019-154). The motion carried unanimously. Volume 64 - Page 222 City of Newport Beach Study Session and Regular Meeting October 8, 2019 XIX. CURRENT BUSINESS 13. Resolution No. 2019-91: Sculpture Exhibition in Civic Center Park — Local Assistance Specified Grant (C-8611-1) [38/100-2019] Library Services Director Hetherton utilized a presentation to discuss the Local Assistance Specified Grant and highlight the application procedure, options, funding, phases, timeline, and staff proposal. In response to Council questions, Library Services Director Hetherton discussed the need to improve the paths in the Civic Center Park and possible material to use for the paths. Council Member Herdman expressed support for the City Arts Commission's request, believed if the Commission's funding was decreased by $135,000, the City would be guilty of supplanting, and pointed out the grant would solve the City's issues relative to art funding. Mayor Pro Tem O'Neill assured that the City is not supplanting but moving the funds back into the General Fund to ensure Phases V and VI are paid for with State money. He added that he believed staff's proposal complies more with the State guidelines and timeframe. City Arts Commission Chair Arlene Greer indicated the staff report did not completely reflect what occurred at the last Commission meeting, stated the Commission's request would provide the opportunity to fund repairs to the park and stop the gaps where the Civic Center Park is bare, noted funding was sought after due to the success of the Sculpture Exhibit, believed installing more sculptures would make raising funds easier, indicated the Commission would not need to request more funding from Council in two years, discussed the revenue opportunity for the City with having people visit the exhibit, indicated the difficulties with Phase IV, touted the uniqueness of the exhibit and that its location is at a cornerstone of the City, and emphasized education programming is still the focus and cities throughout the County have been putting emphasis into art. In response to Mayor Dixon's questions, Commission Chair Greer discussed the efforts of the Newport Beach Arts Foundation, but noted the Commission is trying to help the Foundation raise funds, and believed it would be difficult to raise money if funds are being placed back into the General Fund. Mayor Dixon commended the Commission on their passion, but indicated she would like to see more community support, especially with the growing demands on the General Fund. Lesley Miller, Palm Desert Art in Public Places Commissioner, explained how Palm Desert's art program is well funded, discussed the Desert X program, commended the City for getting the grant, and expressed support for the Arts Commission's request. Jim Mosher shared Mayor Pro Tem O'Neill's concern regarding the timeline, expressed support for receiving public input and Council seeking the Commission's recommendation, stated he was disappointed the Parks, Beaches and Recreation Commission (PB&R) did not have a recommendation, noted Council does not have to follow the Commission's recommendation and believed staffs recommendation was more thought out, questioned if there are other costs that could be charged to the grant, and suggested that Council review the original landscape plan for the park and vision for the Civic Center with the Arts Commission and PB&R. Frederick Rawlins believed there were negative emotions about the rabbit sculptures, but believed private funding will occur if the City works to get positive feedback and publicity about the park. Council Member Avery stated he has always supported the Commission, but agreed the City needs more funding for the homeless issue. He commended the Commission and Council Member Herdman for the money it has raised and for acquiring the grant. Volume 64 - Page 223 City of Newport Beach Study Session and Regular Meeting October 8, 2019 Motion by Council Member Avery, seconded by Mayor Pro Tem O'Neill, 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. 2019-91, AResolution of the City Council of the City of Newport Beach, California, Approving Application for Specified Grant Funding for $500,000 for the Sculpture Exhibition in Civic Center Park Project; and c) approve a proposal to use Local Assisted Specified Grant Funds to fund Phases V and VI of the Sculpture Exhibition in Civic Center Park and infrastructure improvements to Civic Center Park. Mayor Pro Tem O'Neill noted the grant was not generated by the Library Services Department and information about the grant was not received until August, emphasized the importance of determining if the City agrees to the State's terms, indicated the City has finance policies it should follow, pointed out the incredible amount of costs being imposed on cities by the State, and indicated he seconded the motion only because the State would be giving the City money which will be able to offset the General Fund so the City can pay for some of the mandates. In response to Council questions, Library Services Director Hetherton noted the State will reimburse the City for its costs in specific ways and at certain milestones. Mayor Pro Tem O'Neill noted the amount of accounting and auditing associated with the grant. Council Member Muldoon took issue that the State is willing to grant the City $500,000 for art when cities are facing bigger issues, like increased crime, homelessness, and unfunded pension liability. He received confirmation from City Manager Leung that the City would still be eligible for the grant if the resolution was adopted at the next meeting. Substitute motion by Council Member Muldoon, seconded by Council Member Brenner, to continue the item to the October 22, 2019 City Council meeting. Council Member Brenner noted that, when Assemblywoman Petrie -Norris was elected and asked how she could help, the homeless issue was not in the forefront, noted she previously wanted more public outreach when Phase V was approved, and indicated she is not comfortable with approving this at this time because it feels rushed. She emphasized homelessness is a bigger issue and preempts anything else the City is spending money on. Council Member Herdman noted that this Council had encouraged the Commission to embrace the public-private concept when Assemblywoman Petrie -Norris was elected, the Foundation has been struggling with raising funds, and emphasized the grant is a funding solution for the arts issue, although he did not know a time limit was going to be implemented. Mayor Pro Tem O'Neill discussed the Procedural Guide, believing it does not exist, and indicated he is willing to move this forward, as long as the City is confident of what it is agreeing to and the terms are defined. With Council Member Herdman voting no, the substitute motion carried. XX. MOTION FOR RECONSIDERATION — None XX. ADJOURNMENT — 9:54 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 100 Civic C ter Drive on October 3, 2019, at 4:00 p.m. n aE rpOg r n c l 1 r / I I_ Diane B. Dixon, Mayor Volume 64 - Page 224