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HomeMy WebLinkAbout01 - MinutesCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting January 26, 2021 I. ROLL CALL - 4:00 p.m. February 9, 2021 Agenda Item No. 1 Present: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon (arrived at 4:04 p.m.), Council Member Noah Blom (arrived at 4:04 p.m.), Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar City Manager Leung reported that she received good feedback regarding the Marine Activities Permit (MAP) application in Item 3 [Ordinance No. 2021-3: Amending Chapter 17.10 (Marine Activities Permits) of Title 17 (Harbor Code) of the Newport Beach Municipal Code and Other Related Provisions], requested the opportunity to continue editing the application, and indicated it would not affect adoption of the ordinance. SS2. Review of Restaurant Parking and Outdoor Dining Requirements Council Member Blom recused himself du( to business .West conflicts. Community Development Director Jurjis land Prinflpalnner Schneider utilized a presentation to discuss the Emergen5W Temporary Use Permit, public spaces, pros and cons, private on-site/restaurant parking, and parking staiNi jS. %1h.- In response to Council Member O'Neill's question, Principal Planner Schneider noted the range of parking standards considers employee parking*nd added that most restaurants come in at 1 space per 40 square feet.of net Nblic area. Principal Planner Schneider continued the presentation by discussing the effects of ride share and deliveries on parking standards. Co immunity Development Director Jurjis added that there is minimal data available to suppoFT"his idea, believed that no restaurant in Orange County has a dedic ted ride share parking space, and noted that staff is requesting Council input on this issue. In response to ouncil Member questions, Community Development Director Jurjis indicated the City has issued approximately 110 Emergency Temporary Use Permits, stated that a very small percentage of those provide seating on the sidewalk, and added that there are about 400 restaurants in Newport Beach and the number that have shut down during COVID-19 is unknown. Council Member Dixon stated that parking is not the same in all cities, circumstances on the Peninsula are unique, and believed rideshare programs need more than one parking space. Principal Planner Schneider concluded the presentation with consideration of bicycle use, coastal restrictions and tidelands, and a list of items for direction and feedback. In response to Council Member Dixon's questions, Community Development Director Jurjis advised that staff seeks guidance regarding interior versus exterior occupant load, City Council Policy L-21, McFadden Square, restaurants leasing City spaces, and increasing occupant load. In response to Council Member O'Neill's questions, Community Development Director Jurjis related that staff will return with proposed code changes to initiate measures, community outreach, and proposed recommendations in a Study Session. Council Member O'Neill indicated Volume 64 - Page 608 City of Newport Beach Study Session and Regular Meeting January 26, 2021 there may be different approaches in different parts of the City, the City is behind with technology, there is a lot of turnover in parking spaces and a lot more biking, a need to know the number of bike stalls that can be exchanged for a parking space, there may be a difference seasonally, and Council may not be at a point to initiate a Code change at this time. He expressed a desire for staff to hire a consultant and conduct outreach to study it. Council Member Brenner noted that residents are enjoying outside dining and would like to see that continue, stated that Corona del Mar is different from other areas, residents have stated they have been patient and want restaurants to thrive and survive, indicated that Council needs extensive public outreach, and believed that parking spaces for rideshare services need to be on Pacific Coast Highway, not in residential areas. Mayor Pro Tem Muldoon supported this moving forward as quickly as possible. Council Member Duffield supported staffs ideas and liked Council Member O'Neill's comments. Mayor Avery supported studying all the available options, noted that parking at the Newport Beach Pier is difficult in the summer and forces custoers erause rideshare services and bikes, and stated that Council needs to consider areas sepairmnd figure out where there is room to take away public parking and determine the dema Council Member O'Neill believed that optionsAwo,can6 four can move faster on the planning level, taking away public parking works now ut it may not work when people can return to dining inside restaurants, and infel eo that tioN one and five will be more site specific. Council Member Dixon indicated that there are many layers of questions and issues, the Peninsula has parking challenges during good weat*, public outreach will be critical, and restaurant parking in residential/high density areas needs to work for residents, businesses, and the public. AO N Jim Mosher indicated the only concern raised in the presentation was increased maintenance, discussed Council Member Dixon's concerns about the loss of public parking space, discussed City Council Policy L-21, and encouraged people to walk more. 1k Following a straw poll, City A#ney Harp noted that all Council Members expressed support for all the points presented. Mayor Pro Tem Muldoon clarified that he supported any permanent work. SS3. Review of CommmIcial Parking Needs Community Development Director Jurjis and Principal Planner Schneider utilized a presentation to discuss commercial parking, the update to the parking code, overlays and activity nodes, the parking management overlay for Balboa Village coming to Council on February 9, 2021, standards for commercial centers, curbside management, and coastal restrictions, and requested direction regarding engaging a traffic/parking consultant to provide recommendations. Council Member Dixon supported using an outside consultant, briefly reviewed the history of the Balboa Village overlay, and believed an overlay can be a game changer to stimulate economic development in the many villages. In response to Council Member Dixon's question, Community Development Director Jurjis noted the California Coastal Commission modified the overlay. Council Member Blom thanked staff, expressed excitement about alternatives for moving forward, indicated that Council has to look toward the future regarding retail/commercial and Volume 64 - Page 609 City of Newport Beach Study Session and Regular Meeting January 26, 2021 IV. V VI. revenue, expressed concern about empty office buildings and commercial spots, and noted that there is opportunity to work with some of those partnerships to find walkable areas and parking areas. Council Member O'Neill believed removing two public spaces for a valet plan gains 10 or 15 spots from people not parking in residential areas, the node idea stimulates private industry, putting in parking structures such as at the Five Crowns Restaurant parking lot, designated spaces for rideshare services prevents double parking, Council has to consider how people are driving and getting dropped off, and encouraged people to use more rideshare programs. Council Member Brenner was intrigued by the idea of designating golf cart parking to create more spaces. Council Member O'Neill suggested adding a few other areas such as Bayside Drive, the Corona del Mar Plaza, and the Westcliff area to bullet point C, areas that are not part of a planned community text and can benefit from some sort of overlay or curb management plan. Council Member Duffield indicated he just x forward to using it to find a parking space. Following a straw poll, City Attorney Harp n( for the bullet points in staffs presentation. PUBLIC COMMENTS - None gal golf cart and is looking Members expressed support City Attorney Harp reported the City Count would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the title. CLOSED SESSION - Council Chambers Conference Room A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Barbara Salvini, Human Resources Director, Labor Negotiator. Employee Organizations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City EmploNees Association (NBCEA); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Employees League (NBEL); Newport Beach Lifeguard Management Association (NBLMA); Part Time Employees Association of NewporWeach (PTEANB); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Employee Association (NBPTEA). RECESSED - 5:00 p.m. RECONVENED AT 5:30 P.M. FOR REGULAR MEETING ROLL CALL Present: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill VIII. CLOSED SESSION REPORT Volume 64 - Page 610 City of Newport Beach Study Session and Regular Meeting January 26, 2021 City Attorney Harp announced that no reportable actions were taken. IX. INVOCATION — President Rajan Zed, Universal Society of Hinduism, Reno, NV X. PLEDGE OF ALLEGIANCE — Council Member Dixon XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Brenner: • Attended the orientation and board meeting of the Orange County Mosquito and Vector Control District • Utilized a slide to show renovations at the Crystal Cove Cottages, learned about the free STEM program, and announced information can be obtained from sara@crystalcove.org • Attended a Homeless Task Force meeting, and used a slide to encourage residents to aid the homeless through Good Giving at newportbeachca.gov/give Council Member O'Neill: • Announced his reappointment as Vice Chair andn e at the San Joaquin Hills Transportation Corridor Authority (TCA) Board meeting • Attended the Corona del Mar Residents Assoc'ation (Cd2IRA) and Housing Element Update Advisory Committee (HEUAC) meetings, and ai µnced that the City of Newport Beach's two appeals were denied by the Southern California Association of Governments (SLAG) • Attended the groundbreaking for Fire Station No. 2 • Acknowledged the one-year anniversary of losing nine members of the community Council Member Dixon: • Attended the Aviation Committee meeting • Announced that Congressw an Steel has been assigned to the House Transportation and Infrastructure Committee • Attended the groundbreaking or Fire Stati /0. 2 and announced a survey to name the fire station Council Member Blo� • Expressed his appreciation to Mayes Avery for appointing him to the Aviation Committee and to Council Member Dixon for chairing the committee Council Member Duffield: • Announced Newport Beachs dredging project will receive a $6.77 million Federal grant this year, reviewed the benefits oTTredging and the City's efforts to obtain funding, and thanked Public Works Director Webb, Administrative Manager Miller, Harbor Commissioner Cunningham, Mayor Avery, the Finance Committee, lobbyists in Washington, Congressman Calvert, Congresswoman Steel, and the U.S. Army Corps of Engineers Mayor Pro Tem Muldoon: • Congratulated Council Member Duffield, Harbor Commissioner Cunningham, and staff for the dredging project which will affect water quality and use of the Bay • Thanked Council Member O'Neill for his leadership during the hardship last year, and indicated his heart goes out to those who lost someone to the tragedy Mayor Avery: • Indicated the award for the dredging project is huge for the City, the health of the Bay, businesses, and residents, and commended Council Member Duffield for his constant effort • Utilized slides to announce the City Council Planning Session on January 30, 2021 and that the Circulation Visioning Workshop has been rescheduled for February 10, 2021 Volume 64 - Page 611 City of Newport Beach Study Session and Regular Meeting January 26, 2021 City Manager Leung introduced new Finance Director Scott Catlett and provided his background. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member O'Neill noted that City Manager Leung pulled the draft Marine Activities Permit applications from Item 3 [Ordinance No. 2021-3: Amending Chapter 17.10 (Marine Activities Permits) of Title 17 (Harbor Code) of the Newport Beach Municipal Code and Other Related Provisions]. Jim Mosher addressed Item 3, believing the whole ordinance needs more work, staff did not adequately address Council's questions at the Study Session, and stated that Council should send its concerns and list of questions to the Harbor Commission for review and response. An unidentified speaker commented that some parents believe telling their kids what to do is bad. Council Member Dixon requested staff explain Item 7 (County of Orange Economic Support Grant Agreement and 2021 Small Business Support Grant Program) so businesses are aware of this opportunity. City Manager Leung reported the County of Orange allocated $2 million per district, and the City of Newport Beach received $290,000, which will be awarde as $5,000 grants through the City's grant program, and information is available on the City's websi XIV. CONSENT CALENDAR RF4DING OF MINUTES AND ORDINANCES 11 - Minutes for the January 12, 2021 City Council Regular Meeting Waive reading of subject minutes, approve as mended, and order filed, 1. [100-2021] 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 ADOPTIO 3. Ordinance No. 2021-3: Amending Chapter 17.10 (Marine Activities Permits) of Title 17 (Harbor Code) of the Newport Beach Municipal Code and Other Related Provisions [100- 2021] 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. 2021-3, An Ordinance of the City Council of Newport Beach, California, Amending Title 17.10 (Marine Activities Permit) of Title 17 (Harbor Code) of the Newport Beach Municipal Code and Other Related Provisions; and c) Receive and file the Marine Activities Permit industry specific applications. Council Member Duffield recused himself on Item 3 due to business interest conflicts and Mayor Pro Tem Muldoon voted "no" on Item 3. RESOLUTION FOR ADOPTION 4. Resolution No. 2021-6: Approval and Award of Professional Services Agreement with Hinderliter, DeLlamas & Associates for Sales Tax and Business License Revenue Services and Authorizing Access to Sales or Transaction and Use Tax Records and Documents Pursuant to California Revenue & Taxation Code Section 7056(b) (C-8568-1) [100-2021] 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 612 City of Newport Beach Study Session and Regular Meeting January 26, 2021 b) Authorize the Mayor and City Clerk to execute a five-year Professional Services Agreement with HdL for sales and use tax auditing and analysis, for a total not -to -exceed amount of $651,000; c) Authorize the Mayor and City Clerk to execute a Contract Governing Access to Confidential Taxpayer Data with HdL describing the legal requirements within California Revenue & Taxation Code ("RTC") 7056; and d) Adopt Resolution No. 2021-6, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Access to Sales or Transaction and Use Tax Records and Documents Pursuant to California Revenue & Taxation Code Section 7056(b). Mayor Pro Tem Muldoon voted "no" on Item 4. CONTRACTS AND AGREEMENTS 5. Window Washing and Exterior Cleaning Services — Amendment No. 1 to Maintenance and Repair Agreement with Crown Building Services, Inc. (C-8019-1) [38/100-20211 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, dir tly or indirectly; b) Approve Amendment No. One to Maintenance and RepaiN Agreement with Crown Building Services, Inc. (C-8019-1) to add $184,000 to the current contract for a total not -to -exceed amount of $478,775 and extend term of the agreement to April 26, 2024; and c) Authorize the Mayor and City Clerk to execute amendment 6. Professional Services Agreement with Cole Huber LL or Hearing Adjudication Services (C-8659-1) [38/100-20211 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) Authorize the Mayor to execute a three-year agreement with Huber for hearing adjudication services, with a not-to-excee o ensation amount of Fifty Thousand Dollars ($50,000). 7. County of Orange Economic Sup rt Grant Agreement and 2021 Small Business Support Grant Program (C-8625-3) [38/100-20211 - a) Determine this action is exempt_h:ani the California Environmental Quality Act (CEQA) pursuant to SAtions 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) Ratify the Subrecipient Agreement Between the County of Orange and the City of Newport Beach for Econ is Support Provided by the City; c) Approve BudgetAmendment No. 21-027 in the amount of $290,000 in grant funds and appropriate to the Economic Development Division of the City Manager's Office; and d) Authorize the City Manager to take any and all action necessary to implement and administer a Small Business Support Grant Program, funded with $290,000 in County General Funds, in accordance with the Grant Agreement between the City of Newport Beach and County of Orange. MISCELLANEOUS 8. Planning Commission Agenda for the January 21, 2021 Meeting [100-20211 Receive and file. 9. Accept the 2019 Emergency Management Performance Grant (C-8075-6) [38/100-20211 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) Accept the grant funding in the amount of $11,038 to be used in support of the City's emergency management program; and Volume 64 - Page 613 City of Newport Beach Study Session and Regular Meeting January 26, 2021 c) Approve Budget Amendment No. 21-024 to accept grant funds from the FEMA through the County of Orange, increase revenue estimates by $11,038 in account 01035352-431250 and increase expenditures appropriations by $11,038 in account 0103511-821005. 10. Grants and Donations Report for the Quarter Ending December 31, 2020 [100-20211 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. Motion by Mayor Pro Tem Muldoon, seconded by Council Member O'Neill, to approve the Consent Calendar; and noting the amendments to Item 1, the recusal by Council Member Duffield to Item 3, and the "no" votes to Items 3 and 4 by Mayor Pro Tem Muldoon. The motion carried unanimously. Orange County Head of the Transition Staff Tim Whitacre provided the County's check related to Item 7, and Mayor Avery acknowledged receipt of the check. Mr. itacre advised that this is not the last funding opportunity from the County since the Supervisor exploring additional ways to help everyone recover and stay in business. In response to Council Member Dixon's question, Mr. Whitac reported the Othena website is challenging and available only to people eligible forier 1A COVID-19 vaccinations and encouraged people to continue checking the website or call 714-83Q00 or 714-834-3220. XV. ITEMS REMOVED FROM THE CONSEN ENDAR — None XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS — None XVII. PUBLIC HEARINGS 10. Ordinance Nos. 2021-1 and 2021-2: Land Use Entitlement Applications for the Residences at 4400 Von Karman Project (PA2020-061) (C-7904-2) [38/100-20211 Council Member O'Neill recused him�f due to his membership at the Pacific Club located at 4110 MacArthur Boulevard. Council Membtienner disclosed ex parte communications with The Picerne Group (TPG), Still Polluting Our Newport (SPON) representatives, Derek Ostenstein, Melanie Schlotterbeck, and Adriana and Fred Fourcher., r Council Member Dixon disclosed ex -parte communications with the applicant, nearby business owners, TPG, Derek Ostenstein, Dwight Belden, and the Fourchers. Council Member Blom disclosed ex -parte communications with TPG and Olen Properties. Council Member Duffield disclosed ex -parte communications with TPG and a property owner at Mr. Belden's building. Mayor Pro Tem Muldoon disclosed ex -parte communications with the applicant, TPG, and parties objecting to the application, including members of the condominium group. Mayor Avery disclosed ex -parte communications with TPG and SPON. Deputy Community Development Director Campbell utilized a presentation to discuss the airport area, the 2006 General Plan, responses to comments, minor changes to the project such as the Volume 64 - Page 614 City of Newport Beach Study Session and Regular Meeting January 26, 2021 separation between buildings and the location of the freestanding parking structure, and the memorandum from Kimley Horn, the City's environmental consultant. In response to Council Member Dixon's questions, Deputy Community Development Director Campbell reported that the parking structure changed from four stories to five stories, its footprint is smaller but taller, the changes do not affect the outcome of the environmental analysis, the changes resulted from negotiations with business owners in the area, the Planning Commission reviewed the materials for the project, and noted that the park is slightly wider. Mayor Avery opened the public hearing. Greg Nakahira, applicant, thanked staff, the Planning Commission, the Parks, Beaches and Recreation Commission (PB&R), Airport Land Use Commission (ALUC), Koll Company, and community groups, and utilized a presentation to introduce TPG. Ken Picerne used a presentation to provide an executive summary, the project history, how Integrated Conceptual Development Plan (ICDP) granted the ability to develop residences, compliance with the Koll Center Covenants, Conditions anRestrictions (CC&Rs), Planning Commission approved design, community outreach, a stat 7en from SPON, Koll Center building owner outreach, response to community input, the prior request versus the height of the current project, height comparisons, park design comparis , typical building separations, proposed building separations, the office parking replace n, the fre standing garage setback from closest office building. r Tim Stanley, Picerne Development President, reported the purpose of the project is to provide housing through a $250 million investment and utilized a presentation to discuss elevations, and the park design, connectivity, and perspective. W Tony Petros, LSA President and Chief Operating Officer, utilized a presentation to discuss the office parking replacement plan, the LSA Parking Accumulation Study, conclusion that existing parking is adequate for both office and residentialses, Koll Center's acceptance of the findings and the interim parking plan. He further reiterate replacement of all existing office parking, compliance with parking standards, anW 94uttle and valet service if needed. Mr. Picerne adviser that Tl& is e ed to assist the City with implementing its housing plan. Jim Mosher noted the Plannin Commission did not hold a study session on the project, the PB&R reviewed the park twice, an ted concerns about the park and parking. Adriana Fourcher, Von K rman building owner and president of the Von Karman owners association, utilized alWesentation to discuss the proposed parking garage versus the existing garage, stated that the supplemental memo does not address enhancements and materials, and noted that she would like to work with the applicant regarding landscaping, lighting, and screening for the parking structure. Julie Ault, Olen Properties, indicated the setback is not large enough and there will be a parking deficit during Phase 2 of construction, requested a minimum 75 -foot setback, and conditions requiring that there be no parking deficiency and the addition of a small retail component. Geoff Willis, representing Olen Properties, believed the project violates General Plan Policy 6.15.6, that the use of an addendum for CEQA is inappropriate, that the study measured Level of Service (LOS) rather than Vehicle Miles Traveled (VMT), and that COVID-19 triggers a supplemental Environmental Impact Report (EIR). He requested Council deny the project. Fred Fourcher believed that the project violates CC&Rs, the City is taking away existing private property rights, the project negatively impacts private property owners, the project creates a Volume 64 - Page 615 City of Newport Beach Study Session and Regular Meeting January 26, 2021 265 -stall parking deficiency, the proposed parking garage is too far away from the offices it serves, and asked City to direct Koll to address owners' concerns. Bill Salamandrakis, Affordable Housing Access President, stated the project would create 300 new housing units in Newport Beach, supported the project as a model for infill development, and hoped to identify subsidy resources for affordable housing. Bradley Lofgren, Principal at Peregrine Realty Partners, indicated the infill reuse project is unique and shared his analysis of the development plan and its impact on adjacent office buildings. Mike Alcala related that the project is consistent with the General Plan, fulfills the goals of the ICDP, and provides market -rate and affordable housing near public transportation. Paul Fruchbom, Principal with KDF Communities, believed the project will help the City meet its Regional Housing Needs Assessment (RHNA) requirement and urged Council to approve the project. Paul supported the project, especially the park, and noted the importance of housing near work for staff retention. Nicole Criste, representing Olen Properties, indicated she submitted written comments previously, the project is not consistent with the General Plan and an addendum is not an appropriate document for environmental review of this project. Elizabeth Hansburg, People for Housing OC, supp oject because it brings many amenities to the business park and reuses commercial space. Dwight Belden commended TPG for listening to tlbe o concerns, supported TPG's direction and intent with the project, and asked Council to direct e applicant to continue working with neighbors and nearby property owners. Michael Costa, President of Highridge CostDevelopment Company, commended TPG for addressing almost all of the neighbors' con erns and utilizing a density bonus to provide 13 affordable housing units 4Vd supported approval of the project. Jennifer HernandZ, representing the applicant, advised that the project implements the City's General Plan a6endment and the ICDP, objections to the project were not submitted timely, denying the applicant based on neighbors' opinions is unconstitutional, and using an addendum is appropriate. Hearing no further testimony, Mayor Avery closed the public hearing. Deputy Community Development Director Campbell clarified that the park has a 150 -foot dimension along Von Karman and meets the General Plan standard, the General Plan does not mandate retail space for the project, the State Density Bonus Law requires the City to accept density above and beyond its General Plan and zoning to accommodate affordable housing construction, and the project's size and density comply with the General Plan. City Attorney Harp noted the response to correspondence addressed many of the CEQA issues raised tonight, and the addendum is appropriate because there is no new information or changed circumstances that require additional environmental analysis. Dana Privett, Kimley-Horn, reported the consultants and staff feel comfortable that the environmental analysis was appropriate as the findings for the project result in no significant impacts or no substantial increase in significant impacts. Volume 64 - Page 616 City of Newport Beach Study Session and Regular Meeting January 26, 2021 Mayor Pro Tem Muldoon remarked that he is a property rights advocate, the applicant's changes were impressive, the project is aesthetically pleasing, and he supports projects that fit within the parameters of local and State laws. Motion by Mayor Pro Tem Muldoon, seconded by Council Member Duffield, to a) adopt Resolution No. 2021-2, A Resolution of the City Council of the City of Newport Beach, California, Adopting Addendum No. ER2020-003 to the 2006 General Plan Update Program Environmental Impact Report and the 2008-2014 City of Newport Beach Housing Element Update Initial Study/Negative Declaration for the Residences at 4400 Von Karman Project Located at 4400 Von Karman Avenue (PA2020-061); b) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-1, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Planned Community Development Plan Amendment No. PD2020-001 for the Residences at 4400 Von Karman Project Located at 4400 Von Karman Avenue (PA2020-061), and pass to second reading on February 9, 2021; c) adopt Resolution No. 2021-3, A Resolution of the City Council of the City of Newport Beach, California, Approving Major Site Development Review No. SD2020-006, Lot Line Adjustment No. LA2020-002, Affordable Housing Implementation Plan No. AH2020-003, and Traffic Study No. TS2020-001 for the Residences at 4400 Von Karman Project Located at 4400 Von Karman Avenue (PA2020-061); and d) waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2021-2,�An Ordinance of the City Council of the City of Newport Beach, California, Approving Development Agreement No. DA2020-002 for the Residences at 4400 Von Karman Project Located at 4 O,Von K an Avenue (PA2020-061), and pass to second reading on February 9, 2021. Council Member Dixon commended TPG for meeting with stakeholders and community groups, noted parking during construction seems to be the issue, hoped TPG can continue to work this out, and suggested that the parking structure be enhanced with landscaping. In response to her questions, Community Development Director Jurjis reported that staff answered questions as they came up during the Planning Commissio hearing, but nt t as detailed as this evening. Deputy Community Development Director Campbell indicated the closest grocery store is located at Jamboree Road and Michelson Drive, with others located in Irvine or Eastbluff. Community Development Director Jurjis added that amenities will be a part of the Land Use Element Update later in the year. Council Member Dixon appreciated the use of the same materials in the market - rate and affordable units iii Uptown Newpoft,-understood this project will be the same, and hoped this project would be a model for future affordable housing projects. 1k Council MembejOBlom stated he is a proponent for the airport area as a whole, more amenities are needed in that area but those things come by getting development in place, and noted this area does not feel like Newport Beach but staff has done a commendable job of bringing it into the fold. He thanked staff and TPG, indicated that stakeholders have to ask for something that helps create the community, and this project will help create the community we want in the airport area, and expressed his support of the project. Council Member Brenner indicated she was part of the discussion with SPON, TPG, and Melanie Schlotterbeck that asked about the lack of grocery stores and retail, but agreed that more residents in the area will attract more retail. She expressed confidence that the issue will be resolved, concurred with appreciation for all parties involved and their respectful comments and clear explanations, as the discussions prepared her to vote on the project, and noted that this is an example for future developments of how much time and energy should be put into a project to educate Council, the Planning Commission, and the community. Council Member Duffield thanked staff for working with TPG. Mayor Avery related that infill development is the City's housing future, residents believe the airport area, West Newport, and Newport Center are appropriate places for housing, residents have a concept of Newport Beach and good development, this area will be its own village, people are needed there to bring in the amenities, housing in California is a new world, the City is fortunate to Volume 64 - Page 617 City of Newport Beach Study Session and Regular Meeting January 26, 2021 have a developer doing a project that is needed, and at least Newport Beach is doing a better job than most cities. He commended staff, the Planning Commission, and the applicant for their work on the project, which will be a model going forward. At Community Development Director Jurjis' suggestion, Mayor Pro Tem Muldoon amended the motion to include the design revisions, and Council Member Duffield concurred. Council Member Dixon recalled community opposition to the prior project and encouraged the community to engage with projects and the Housing Element Update. With Council Member O'Neill recusing himself, the motion carried 6-0. Mayor Avery recessed the meeting at 8:10p.m. and reconvened the meeting at 8:19p.m. with all members of the City Council in attendance. 12. Resolution No. 2021-7: General Plan Amendment for Shell Service Station Car Wash Located at 1600 Jamboree Road (PA2016-093) [100-20211 Council Member Brenner disclosed ex -parte communications wi'at12 Steve Rosansky and Lynn Swain. Council Member O'Neill disclosed ex -parte communications with Mr. Rosansky. Council Member Dixon disclosed ex -parte communications with Mr. Rosansky, neighbors, and Lynn Swain. � + Council Member Blom disclosed ex -parte unications with nine neighboring residents and the owner of the station. Council Member Duffield disclosed ex -parte commuZ sons with residents. Mayor Pro Tem Muldoon disclosed eAartEiCinunications with an advocate for the project and a resident opposing the project. 4 Mayor Avery disclos art communications with Mr. Rosansky and the neighborhood group opposing the proje Assistant Planner Whelan zedYpresentation to display the vicinity map, site plan, and design, and discuss the General Pla mendment and setback modification. I In response to Council Me ber O'Neill's question, Assistant Planner Whelan clarified that the proposed square footage is less than the square footage of the Chevron station across the street. Assistant Planner Whelan continued the presentation to discuss the proximity to residential properties and projected noise levels. In response to Council Member O'Neill's question, Assistant Planner Whelan advised that staff has no reason to dispute the findings of the noise study. Assistant Planner Whelan further presented information regarding noise related conditions and additional conditions and recommendation from the Planning Commission. In response to Mayor Avery's question, Assistant Planner Whelan stated the project will not reduce onsite parking, meets the Code requirements for parking, and added that the applicant is working to keep the existing pine trees, but she would confirm that. Volume 64 - Page 618 City of Newport Beach Study Session and Regular Meeting January 26, 2021 In response to Council Member Dixon's question, Assistant Planner Whelan indicated the applicant is requesting 15 feet setbacks when the Zoning Code requires 30 feet, and noted that staff is not aware of another intersection with two car washes in Newport Beach. Mayor Avery opened the public hearing. Steve Rosansky, Newport West, presented information regarding the design team and history of the service station, provided site pictures, and discussed property rights, architectural drawings, elevations, car washes, parking spaces, retaining trees, 10 -foot wall and hedge extensions, and hours of operation. He shared a demonstration video and discussed equipment placement, the sound study, ambient noise measurement locations, projected car wash noise levels, Federal Aviation Administration (FAA) noise comparisons, and reasons to approve the car wash project. He stated that the project complies with the 30 -foot setback on San Joaquin Hills Road and Jamboree Road, and the setback is geared toward the main traveling streets. Mark Coleman opposed the project because of the setback reduction, the car wash provides no measurable benefit for the City, the burden on Big Canyon residential neighborhood, and Council's goal of maintaining the quality of life. 1% Joan Coleman read comments from David Kuhn, Jr. who opposed the project because he believed there is no need for a car wash, and noted that the applicant has previously received three conditional use permits. Gerald Giannini asked Council to correct the Pla ning Commission's recommendation to approve the project, indicated other projects have been denied because they encroached into the setback, and urged Council to deny the application. Joyce Sciarra related that her home is directly adjacent to ti'l�service station, the noise would impact her young son and elderly father, and urged Council not to ruin the neighborhood. Leonard Simon asked Council -to deny the appli at* n because the noise level of the car wash is not acceptable to adjacent residents and the car wash will not increase sales or employment, and acknowledged petitions froil X11 residents in anyon Mesa opposing the project. Hearing no further testi ny, M or Avery closed the public hearing. Council Member O'Neill beli ed e core issues are density and setback, a car wash will not overburden the site, staffs dis ussion of the setback is convincing, noise is not a reasonable factor to consider in denying the project given the noise study and the noise ordinance, and the right thing is to support the project, a business, and an additional amenity. 1W Council Member Blom noted public comments regarding a five-year process and the hydrogen plant, which required Federal approval, this is about a business owner and property rights whether he agree with it or not, he is a Big Canyon resident, noise in Big Canyon is not that loud, the car wash across the street has a competitive advantage, Council cannot play favorites because this location is near homes rather than apartments, this is not about the noise, business owners do not want to go through a five-year process, and Council's job is to consider the law. In response to Council Member Dixon's questions, Mr. Rosansky related that sound measurements were taken at 2 p.m., a measurement was not taken at closing time, and noise from the car wash is less than 40 decibels. Community Development Director Jurjis indicated neither the General Plan nor the community has referred to a need for more car washes in Newport Beach and that staff has not received any complaints related to the car wash across the street. Council Member Dixon recalled public comment comparing repetitive noise to a vacuum cleaner, and noise is a quality -of - life issue, indicated that the Beacon Bay car wash is not adjacent to residential properties, there are a number of car washes in Newport Beach, a 15 -foot setback is a significant adjustment, the Volume 64 - Page 619 City of Newport Beach Study Session and Regular Meeting January 26, 2021 petitions are impressive, and stated that she cannot support the project because of the setback encroachment and the potential noise issues during the evening hours. Council Member Duffield shared his noise observations from trash bins being emptied at the site, noted the other car wash being near commercial activity rather than homes, the doors at the Irvine car wash remaining open regularly, and the noise levels from the Irvine car wash. He questioned what will happen if it is built and is noisier than the study, believed that the residents are already overburdened, and stated that he does not support the project. Council Member Brenner commended Mr. Rosansky's representation of the owner, requested the motion include a condition that the trash cans be moved closer to the street because they are detrimental to the residents' quality of life, expressed concern regarding the potential for sound from the car wash and traffic bouncing off the wall and into the residences because of the reduced setback, noted that the car wash should probably be located elsewhere, advised that the General Plan indicates only a service station on the site, but the City has allowed three conditional use permits for two mini -marts and the hydrogen fueling station, which the Chevron does not have. She indicated that she could not see why Council would allow a car wash across the street from an existing car wash. Council Member O'Neill reported that noise bouncing off the wall is discussed on page 12-67 of the agenda packet, expressed concern for residents living in the apartments and not wanting them to think Council does not value their quality of life compdred to hAeovOners, advised that the Newport Beach Municipal Code (NBMC) sets allowable exterior noise levels between 7 a.m. and 10 p.m. and between 10 p.m. and 7 a.m., and the noise study found compliance with the standards, added that the car wash operating louder than allowed would be a violation of the conditional use permit or the NBMC, so the permit could be revoked 4ftion issued, and believed that basing the vote on noise is a disservice. Motion by Council Member O'Neill, seconded by Council Member Blom, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 under Class 3 (New Construction or Conversion of small structures) of the CEQA guidelines, because it has no potential to have a significant effect on the environment; and b) adopt Resolution No. 2021- 7, A Resolution of the City Council of the City of Newport Beach, California, Approving General Plan Amendment No. GP2018-001 and Conditional Use Permit No. UP2016-025 for the Addition of a Car Wash to the Existir' Vehicle Service Station Located at 1600 Jamboree Road (PA2016-093). 11 Mayor Avery believed that no one would want a car wash next to their home, this has been a five- year concern, the emotion behind this issue should be considered, and a car wash is normally a benign use, but residents oppose this project. He questioned whether Council should support the residents despite the facts, noted the ambient traffic noise at the intersection, and stated that Council also representMWisinesses, however he empathized with the residents. Council Member O'Neill stated it is Council's job to never throw the NBMC out but to ensure the law does not change from item to item, and urged Council Members to consider the principal legitimacy that comes with the community following the law. With Mayor Avery, Mayor Pro Tem Muldoon, and Council Members Brenner, Dixon and Duffield voting "no," the motion failed 5-2. City Attorney Harp advised that staff can bring back a resolution of denial at the next meeting. Motion by Council Member Dixon, seconded by Council Member Brenner, to bring back a Resolution of Denial at the February 9, 2021 City Council meeting. With Council Member O'Neill voting "no," the motion carried 6-1. Volume 64 - Page 620 City of Newport Beach Study Session and Regular Meeting January 26, 2021 XVIII. CURRENT BUSINESS 13. Residential Solid Waste and Recycling Franchise Update to Comply with State Organics Recycling Mandates — Request for Council Action on Franchise Extension Options (C-5649 and C-3942) [38/100-2021] Public Works Director Webb summarized the cost and changes to residential services in order to comply with State mandates. Council Member Dixon noted residents will begin sorting waste into three carts, the proposed rate is comparable to rates charged in other cities, and residents and the General Fund will bear the increased expense. In response to Council Member Dixon's question, Deputy Public Works Director Martin utilized a presentation to demonstrate comparable rates, contract costs, recycling fees, the three -cart option, and proposed collection/processing modifications. Public Works Director Webb added that most of the other cities have been using three carts for many years, the City has to buy carts and equipment, and the negotiations resulted in an acceptable deal for the City. He added that the cost to the General Fund will increase by several million dollars a year and, of the two options, staff recommends Option 1. IN City Manager Leung reported the annual increase to the (neral Fund will be $2.8 million, and an adjustment of the recycling fee would cover only $1.4 mill on of the $2.8 million. Motion by Council Member Dixon, seconded by Council Member Duffield, to a) determine this action is exempt from the California Environ ental Qlity �r(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines becauselis action will not result in a physical change to the environment, directly or indipatly; and b) direct staff to proceed with preparation of an amended Residential Solid Waste Franchise contract with CR&R to replace their two existing Residential Solid Waste Collection & Recycling Contrads (C-5649 & C-3942), beginning on October 1, 2021 at an initial monthly rate of $24.08 per residential household, with an annual 2% CPI adjustment, and a contract tem of 8 -years with one 2 -year extension option. In response to Council Member Brenner's qulwon, Public Works Director Webb clarified that this item pertains to the contract with CR&R. CouVil Member Brenner described the challenges for the working group to understand the renijigliients and contract, the amount of work handled by working groups and Council committees, and commended staff and the consultants. She requested the working group review a�wnstituent's letter regarding Amazon developing a trial program to recycle its boxes and packing materials. In response to Mayor Pro Tem Muldoon's question, Public Works Director Webb indicated this item will not directly increase residents' rates and stated that the General Fund will pay the difference. In response to Mayor Avery's question, Deputy Public Works Director Martin indicated no other Orange County city pays refuse costs directly. Mayor Avery believed this will encourage people to produce less trash and sort their waste. Jim Mosher discussed the appointment of the working group, the public's understanding of the contract, the lack of CR&R's proposal, a reduction in service for a higher cost, and justifying the proposal with the City Charter. The motion carried unanimously. 14. Approval of 2020 Residential Recycling Fee Study and Setting of Public Hearing for Residential Recycling Service Fee Rates [100-2021] Public Works Director Webb reviewed the annexation of Newport Coast, CR&R's successful bid to haul waste in Newport Coast in 2007, the fee study, adjustments to the recycling fees for the City Volume 64 - Page 621 City of Newport Beach Study Session and Regular Meeting January 26, 2021 and Newport Coast, notice requirements under Proposition 218, the $1.3 million increase in the fee to $2.3 million, and the fee increase covering 30% of the City's refuse cost. Motion by Council Member Blom, 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; b) approve the 2020 Residential Recycling Fee Study; c) direct staff to send a notice of proposed Recycling Service Fee rates and public hearing date for consideration to all effected residential property owners in compliance with Proposition 218 State Law; and d) set the date of March 23, 2021 for the tabulation of protests votes and conduct a public hearing of proposed Recycling Service Fee rates pending the result of the protest vote. Jim Mosher believed the study is not an actual fee study and shared his research into the history of trash collection fees in the City's Charter. Mayor Pro Tem Muldoon clarified that this item and the previous item are related but not dependent on each other. In response to Council Member Brenner's question, City At�Prney Harp advised that he believes the ordinance adopted by the voters does not cover the recycling fee and increasing the recycling fee is appropriate. _ In response to Council Member Dixon's question, Public Worlds Director Webb indicated that Council denial of the rate increase will reduce the amount of funding to offset the CR&R contract in the previous item, and the General Fund will end up paying the full $2.8 million. With Mayor Pro Tem Muldoon voting "no," the motion carried 6-1. 15. Resolution No. 2021-8: Amended and Restated Employment Agreements for City Manager, City Attorney and City.Clerk8/100-20211 City Manager Leung, City Attorne Ha 4,Od City Clerk Brown recused themselves due to 13 financial interest conflicts. Council Member rt d the terms of the employment agreements are clear, and City Manager Leun Att ney Harp, and City Clerk Brown have agreed to the terms. In response to Ji Mosher'sl question, Human Resources Director Salvini clarified that the contribution is 1% o Clerk Brown's base salary paid biweekly. Motion by Council MWber Dixon, seconded by Mayor Avery, 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. 2021-8, A Resolution of the City Council of the City of Newport Beach, California, Modifying the Salary Ranges for the City Manager, City Attorney and City Clerk; c) approve and authorize the Mayor to execute a Second Amended and Restated Employment Agreement between the City of Newport Beach and City Manager Grace K. Leung, subject to the terms and conditions approved by the City Council (C-8568-3); d) approve and authorize the Mayor to execute a Sixth Amended and Restated Employment Agreement between the City of Newport Beach and City Attorney Aaron Harp, subject to the terms and conditions approved by the City Council (C-7034-4); e) approve and authorize the Mayor to execute a Sixth Amended and Restated Employment Agreement between the City of Newport Beach and City Clerk Leilani Brown, subject to the terms and conditions approved by the City Council (C-7032-4); and f) approve Budget Amendment No. 21BA-026 for $18,031 to enhance salary and benefit accounts for the last six months of FY 2020-21 (January 1, 2021 through June 30, 2021). The motion carried unanimously. Volume 64 - Page 622 City of Newport Beach Study Session and Regular Meeting January 26, 2021 15. Coronavirus (COVID-19) Update [100-20211 City Manager Leung and Fire Chief Boyles utilized a presentation to discuss the lifting of the Regional Stay -at -Home Order, data for Orange County cases, the positivity rate needed to move into the red tier, vaccination data, super sites, hopes for an independent clinic in Newport Beach, othena.com updates and assistance, COVID-19 transport data, and noted there are currently no positive cases in the Police and Fire Departments. In response to Council Member Dixon's question, Fire Chief Boyles related that the County is focusing on opening Super POD (Point of Distribution) locations because the newer vaccine does not require extremely cold temperatures. Jim Mosher inquired regarding Mr. Whitacre's previous statement that 80% of vaccines are being provided to hospitals and private providers, while the County receives 20% of the vaccines. In response to Council Member Brenner's request for clarification of Mr. Mosher's question, Fire Chief Boyles indicated he will obtain and provide information to Council. XIX. MOTION FOR RECONSIDERATION - None '%, ADJOURNMENT - Adjourned at 10:33 p.m. in memory of David Fraser 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 January 21, 2021, at 4:00 p.m. Volume 64 - Page 623