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HomeMy WebLinkAbout01 - MinutesI. II. February 23, 2021 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 30, 2021 Call the Meetine to Order - 9:00 a.m. 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 Invocation - Council Member O'Neill Pledge of Allegiance - Council Member Brenner Public Comments on Non -Agenda Items Jim Mosher discussed the format of previous Planni the meetings have evolved into the current format. believed the previous format was more helpful. Phil Bettencourt commended and thanked to former Harbor Commission Chair David Hoiyin Ip noted that many cities have adopted to asking Amazon to take back their boxes, th )se of the meetings, and how the City's priorities are and Mayor O'Neill, and sent greetings t take-out cap and suggested that, in addition back the plastic bubble wrap and air pillows. Nancy Scarborough discussed the Housing Element, the City's Regional Housing Needs Assessment (RHNA) allocation, and Accessory Dwelling Units (ADU), believed the City should maximize the number of ADUs in its RHNA allocation, and noted that high density developments can only provide a low number of affordable housing units Charles Klobe agreed with Mr. Mosher's comments regarding the Planning Session format, requested that the General Plan Update and Circulation Element refocus its efforts on citizen participation, believed citizens do not want high density to meet the RHNA allocation, discussed the advantages of using ADUs toward the RHNAmandate, and asked that Council direct staff to follow this approach. Undate on Fiscal Status City Manager Leung and Finance Director Catlett utilized a presentation to provide an update regarding FY 2020-21 General Fund revenues and expenditures, and discussed the top three revenue sources: property tax, sales tax, and Transient Occupancy Tax (TOT). In response to Council Member Dixon's questions, City Manager Leung and Finance Director Catlett reported that the City has requested and received Federal Emergency Management Agency (FEMA) and Coronavirus Aid, Relief, and Economic Security (CARES) Act reimbursement for COVID-19 expenses, believed FEMA reimburses about 80% of the total cost, and added that staff can provide a report to highlight what the City is claiming and what it is being reimbursed. Finance Director Catlett continued the presentation to discuss unrestricted resources/surplus, displayed a chart of the tiered short-term budget reduction strategy, and highlighted the FY 2021-22 preliminary revenue outlook. Volume 64 - Page 624 City of Newport Beach Planning Session (Special Meeting) January 30, 2021 Council Member O'Neill requested that, in the future, the revenue outlook also include 2018 since COVID-19 was part of 2019. Council Member Dixon noted that the City's housing assessed value has been trending down for the last few years. Finance Director Catlett noted that the City is undergoing a good recovery but is plateauing and not growing at the previous rate. IV. Budeet Development - Operatine Budeet Operating Budget Finance Director Catlett utilized a presentation to discuss the timeline of the public review of the budget, the operating budget pressures, the recent unfunded actuarial liability payment history, pension funding options, and displayed a chart of the impacts of continuing the $35 million payments on the funded and unfunded pension liability. Service Needs City Manager Leung utilized a presentation to discuss funding for the City's homeless strategies, including the Permanent Supportive Housing (PSH) partnerships In response to Council questions, City Manager Leung stated that some development funds go into the affordable housing fund to be used for PSH projects and indicated that Community Development and and Finance are looking into fund sources and will be forecasting for this. She advised that a Housing Element update will be provided at the February 9, 2021 Study Session. Refuse and Recycling Contract Increase City Manager Leung utilized a presentation to highlight the need to build additional annual costs and revenue opportunities into the General Fund budget due to the refuse and recycling contract increase. She noted that the City is in better condition than most cities, but not at the revenue level from two years ago. Code Enforcement Community Devel, staffing levels and Jurjis utilized a presentation to review code enforcement statistics, scussed the pilot program which uses contract hours. In response to Council questions, Community Development Director Jurjis noted the Code Enforcement Supervisor was permanently transferred to the Harbor Department, reported that although they gave up a staff position they were able to fill the void with a contract position, discussed code violations and the increased demand for code enforcement during the pandemic, indicated he is satisfied that code enforcement can handle the current workload, reviewed the use of notice of violation letters prior to issuing citations, confirmed that a citation cannot be issued related to occupancy unless staff witnesses the violation, and believed that, if the ADU trend increases, it would not drain department resources. Boardwalk Ambassador Program Out of an abundance of caution, City Clerk Brown recused herself due to real property interest conflicts. Police Chief Lewis utilized a presentation to discuss the Boardwalk Ambassador Pilot Program which would provide additional presence and visibility on the Boardwalk to augment Police's efforts, and review the contractor's background and estimated costs. Volume 64 - Page 625 City of Newport Beach Planning Session (Special Meeting) January 30, 2021 Harbor Department City Manager Leung noted that, last year, the City discussed additional staffing requests during the budget process but were halted due to the pandemic, and expressed concern relative to having the right resources to implement the new Marine Activities Permit (MAP) program. Harbormaster Borsting utilized a presentation to provide the background of the Harbor Department, the benefits of the Harbor and how it is being used more during the pandemic, displayed a chart of the activity on the Harbor, and reviewed current staffing levels. He requested additional staffing for mooring management and code enforcement, and highlighted the job duties. In response to Council Member Dixon's question, City Manager Leung confirmed that total employee counts will be provided as part of the budget process, stated that she has informed the departments to hold the line this year, and added that the only staffing requests that will come before Council are related to the Harbor Department and A135 issues (contract versus employee regulations). Although Council Member Brenner noted that while she wants the City to have a world-class harbor, citizens have been complaining that there is not enough enforcement throughout the City and there may be other needs that take priority before this request Budget Development Service Needs Summary City Manager Leung displayed a chart that listed the service needs, total costs, and unfunded amounts. Budget Discussion Council Member O'Neill noted that there are other cities in the County that are facing much worse financial issues than Newport Beach. However, he expressed concerns relative to the revenue estimates and trends, noted the City's largest expenditure is staffing, and State mandates on homelessness and organic waste will also incree justified, questioned what will the Capital Improvement Pre only able to balance the last bt deferred. He acknowledged If level, but advised that the b discussions ahead. aenditures. He requested that expenditure increases be budget or whether surpluses will be used, and noted that needs to be reviewed. He pointed out that the City was ecause of the tiered cuts that occurred and many CIP projects were umber of these issues will be handled at the Finance Committee will be coming back to Council and there will be many difficult Council Member Dixon noted that there is still a pandemic, the City's revenue sources are down, agreed with holding the line whenever possible, questioned what services would be decreased or which expenditures reduced, indicated she does not want to see any new positions proposed in this budget until the City is in a better position, and expressed concerns with having to cut the budget without affecting service levels. She pointed out that, although property taxes make up about half of the General Fund, the City would still need to make up the balance that provides for all its services. Council Member Brenner took issue with reducing services when the services are being paid for by the residents through their property taxes. Council Member Duffield stated that enforcement has not occurred on the Harbor for decades, believed the cost will be offset by income and fines, and expressed concern that, if the City does not get a handle on the Harbor, issues will continue. Referencing the service needs summary slide, Mayor Avery believed the list is a reflection of citizens informing Council about enforcement needs and some of the items are mandated while others are optional. He agreed that the City will need to hold the line on the budget in order to not risk the City's financial health, and will probably need to manage all the needs with the current staffing level. Volume 64 - Page 626 City of Newport Beach Planning Session (Special Meeting) January 30, 2021 V. Jim Mosher noted the costs associated with the homeless shelter and questioned if the cost was high, discussed the recycling fee to fully recover current recycling costs but asked if staff anticipates coming back in October with another recycling fee to cover organic waste, and questioned what accounts for the other code enforcement cases listed in the staffing chart. City Manager Leung indicated that the recycling fee adjustment needs to be done on a cost basis, the intent is to have the fee fully recovered, the City anticipates that the recycling costs will be increasing with the new contract, and noted cost recovery can be discussed at a future date, if desired. Hoiyin Ip expressed appreciation for how diligent and mindful Council is being regarding the budget, noted the summary chart is a short list and not one-time fees, believed there will be a lot of costs associated with organic waste reduction compliance (SB1383), and asked how the County is handling SB1383. Mayor Avery recessed the meeting at 10:35 a.m. and reconvened the meeting at 10:48 a.m. with all members of the City Council in attendance. Council MemberBlom announced he would be recusing himself during discussions relative to the Marine Avenue Rehabilitation Project due to real property interest conflicts. Council Member Brenner announced she would be recusing herself during discussions relative to the Grant Howald Park Restoration Project due to real property interest conflicts. Council Member Dixon announced she would be recusing herself during discussions relative to Landscape Enhancement Improvement Project relative to Lido Isle due to real property interest conflicts. Council Member Muldoon announced he would be recusing himself during discussions relative to any street rehabilitation in Eastbluff due to real property interest conflicts; and announced former conflicts relative to the Grant Howald Park Restoration Project and Lido Fire Station No. 2 due to business interest conflicts that no longer exist. City Clerk Brown announced she would be recusing herself during discussions relative to the Oceanfront Boardwalk I Parking Lot Improvement Project and Tsunami Sirens due to real property interest conflicts. Public Works Director Webb utilized a presentation to discuss deferred FY 2020-21 capital funding due to the pandemic, project adjustments from last year, planned General Fund FY 2021-22 capital funding, and suggested programs for FY 2021-2022. In response to Council Member Dixon's questions, Public Works Director Webb clarified that the budget for the Central Library Lecture Hall and Junior Lifeguard Building includes both the City's share and funding through private contributions. He also noted that all the projects on the list had General Fund - related funding and reported that the annual $5 million CIP budget is mostly used toward the City's annual maintenance, not enhancement programs. In response to Council Member Brenner's questions, Public Works Director Webb reviewed the history of the Balboa Island Enhancement Project and stated that staff is looking for a cost effective way to address the benches which would need to be brought to the Parks, Beaches and Recreation Commission; and discussed the Cliff Drive Mobility Improvements Project and stated the Cliff Drive medians were installed as part of a traffic calming effort. Volume 64 - Page 627 City of Newport Beach Planning Session (Special Meeting) January 30, 2021 Public Works Director Webb utilized a presentation and discussed the Facilities Finance Plan (FFP) proposed adjustments for FY 2021-22, noted the FFP was approved by the Finance Committee, pointed out changes and add-ons, and reviewed the two projects staff is proposing to add to the FFP: Newport Coast Pickleball Courts and the replacement of the 15th Street Beach Restrooms. In response to Council Member Brenner's question, Public Works Director Webb indicated that staff has not found any State funding to assist with public restroom replacement, but staff can look into using tidelands funds or parking revenue. Public Works Director Webb, Deputy Public Works Director/City Engineer Houlihan, and Deputy Public Works Director Martin continued with the presentation by reviewing the three major projects in development that will require significant funding: Lower Harbor Navigation Channel Dredging, Balboa Island Drainage System Improvements, and the Corporate Yard — City Fleet Fueling System. In response to Council questions, Deputy Public Works Director/City Engineer Houlihan indicated staff will look into State and Federal grant opportunities for the Balboa Island Drainage System Improvements, but noted there is a lot of competition for grant funds. He also confirmed that the City coordinates street repaving with undergrounding projects. In response to Council questions regarding the City Fle and Deputy Public Works Director Martin discussed Corporation Yard is the only CNG station in the City, and he is unaware of any municipalities using it at this CNG station and CNG station locations outside the Cit, of CNG since they operate the station. Deputy Public Works Directors Martin and challenges, highlighted Executive Order N preliminary fuel island options, and discuss ystem, Public Works Director Webb Natural Gas (CNG), indicated the gdrogen fuel is still new technology sed public accessibility to the City's that Clean Energy controls the cost ontinued the presentation by reviewing fueling sets goals for zero emissions vehicles, displayed allocations and schedule. Public Works Director Webb displayed n slide listing unfunded capital project requests and reviewed the projects. Council Member O'Neill noted that the Balboa Island Drainage System Improvements Project and the Corporate Yard City Fleet Fueling System Project will be almost $10 million in FY 2022-2023, so any project that is deferred this year will be on the same list as those two projects and any deferred project will be even more expensive. He emphasized that tough choices will need to be made not just in this cycle, but for many years. _ In response to Council Member Brenner's questions, Public Works Director Webb discussed trade-offs to updating the video cameras, believed City trucks will be CNG for now since technology does not currently exist to have electric trucks of that size, noted the City may be able to use AQMD funds to pay for part of the project, and expressed hope that funding will be provided to assist with the Executive Order. Jim Mosher indicated that the Newport Ridge Park is a private park because the Irvine Company wanted to dedicate it to the City for public use, but a former City Council rejected the offer of dedication. He also noted that Council, last year, appointed ad hoc committees to deal with the Central Library Lecture Hall and Junior Lifeguard Building, the terms of both ad hoc committees' ended at the end of 2020, and asked if Council received a report from the ad hoc committees. Hoiyin Ip provided examples of hydrogen fuel technology, stated that the CR&R representative at the last meeting indicated their Peris facility produces Renewable Natural Gas (RNG) that can be used in CNG trucks, and discussed the benefits of RNG; however, she indicated that studies show that RNG should be used onsite rather than transfer it through a pipeline. She noted that, pursuant to S131383, cities are required to buy recycled organic waste products and asked if the City should buy it. Volume 64 - Page 628 City of Newport Beach Planning Session (Special Meeting) January 30, 2021 VI. Adjournment- Adjourned the meeting at 11:55 a.m. in memory of Constance "Katie" Muldoon The special meeting 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 27, 2021 at 2:30 p.m. Leilani I. Brown City Clerk Brad Avery Mayor Volume 64 - Page 629 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting February 9, 2021 I. ROLL CALL — 4:00 p.m. February 23, 2021 Agenda Item No. 1 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 IL CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Orange County Human Relations Annual Report James McQueen and Minzah Malik, Orange County Human Relations Board Members, announced the creation of Orange County Together, requested support from Newport Beach and all cities in Orange County, shared data of activities i 20, and thanked the City for its membership. SS3. Current Status of the Housing Element Update Process Community Development Director Jurjis aLd Deputy Community Development Director Campbell utilized a presentation to provide pAates retardiWthe Regional Housing Needs Assessment (RHNA) allocation, theH ing Element Update Advisory Committee (HEUAC), and potential sites. 4111 In response to Council Member O'Nei 1's questions, Community Development Director Jurjis advised that staff is breaking down Banning Ranch for an affordability component and has discussed the property , with the California Department of Housing and Community Development (HCD), but has not received a response. Further, staff has also spoken with the California Coastal Commission Executive Director, reported that the HEUAC is focusing on individual properties because not all pr erties are primed for redevelopment, and the City must provide substa ial evidence that a arcel of land will turn into housing within the next eight years, but ails of substantial evidence are not clear at this time. Deputy Community Developme Director Campbell added that the return rate for documentation from property owners is 1 Council Member Dixon 46ted that Governor Newsom's proposed budget contains a line item for a new entity, the Housing Accountability Board, that will work with cities, local agencies, and counties; and attend council and planning commission meetings to see if there is true determination to turn existing uses to housing. Community Development Director Jurjis indicated the Housing Accountability Board has been discussed as a unit to help cities, but it is definitely an enforcement unit. Council Member O'Neill indicated that eventually the City needs to submit to HCD specific parcel numbers, the number of housing units the property will convert to, and the number of units in each tier of affordability. He thanked HEUAC members and reiterated the challenge of finding the exact properties. In response to Mayor Avery's questions, Deputy Community Development Director Campbell clarified that staff has reached out to property owners citywide, noted that size is a factor in designating a property as not feasible for redevelopment, stated that an owner's willingness to change land uses in the next eight years is helpful in providing evidence, and added that staff is working on possible housing yields and will share them with the HEUAC next week. Volume 64 - Page 630 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Community Development Director Jurjis continued the presentation with information about the West Newport Mesa Light Industrial Area, Airport Area Offices, and Newport Center. Council Member O'Neill reported that, last year, he sent a letter to the Irvine Company asking them to weigh in and, based on his phone call with them, he believed they will not play a major role in this process for substantial evidence purposes. Community Development Director Jurjis continued his presentation with exploring all options, including the 65 dB CNEL area. Council Member O'Neill added that, at the last HEUAC meeting, Brett Feuerstein discussed a potential housing development that would satisfy affordable housing in that area, the proposal has broad appeal, and if the project moves forward, any housing would be new so the occupants would understand what they were getting. In response to Council Member Blom's questions, Deputy Community Development Director Campbell indicated there is housing in the area, such as Santa Ana Heights, Mesa Drive, and south of the golf course, stated that the opportunities for housing are limited, and added that a General Plan Amendment is needed to build housing on the golf course, but today's consideration is whether to include it for consideration, the�ight density and affordability. Community Development Director Jurjis continued the presentation to discuss land uses, RHNA mandates, and Accessory Dwelling Units ( U). In response to Council Member Dixon's questio Community Development Director Jurjis stated that ADUs may be built by right, production is about 21 units/year, and added that staff is working with HCD on standard plans for ADUs. Council Member Brenner noted the sales efforts of Auilders and suggested the City might see some ramifications from that. Conlinunity Devel ent Director Jurjis advised that staff will submit a draft to HCD for their iut, and bypctober, the Housing Element will be more set in stone. A .k In response to Mayor Avery's questions,munity Development Director Jurjis related that the cost to construct an`ADU is about $30 $350/square foot, and the property owner will have to run a pro for a% determine their return. He confirmed that Junior ADUs (JADUs) need to follow code reeiremenA and stated that, if the ADU is located in a home and the home does not meet co, it will have to be retrofitted to meet the current code, which can be costly. Council Me b Blom calculated a 25 -year return on a $450,000 investment. Mayor Avery questioned whether renting part of a property would impact the homeowners' tax break on selling thMroperty. Community Development Director Jurjis concluded the presentation by discussing fee impacts, public benefit fees, development impact fees, the Housing Element schedule, additional engagement opportunities, newporttogether.com, and next steps. Council Member O'Neill stated that RHNA is complicated, expressed concern that the City will not reach compliance by the end of this process, not due to a lack of effort but as a product of calculations, indicated that CalMatters published an inaccurate article about Newport Beach, then the Orange County Register used the data to rank cities, believed there seems to be a perception that Newport Beach is adverse to affordable housing, but that is not historically true and not true going forward, noted that the City has to find 4,800 units at very specific levels of affordability, encouraged everyone to read the affordable housing subcommittee discussion, stated that affordability levels are a County determination, and believed that, in order to incentivize affordable housing in Newport Beach, there are two approaches: direct subsidy and density bonuses. Volume 64 - Page 631 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Deputy Community Development Director Campbell indicated the City's RHNA is roughly 25% very -low-income, 25% low-income, and 25% moderate -income units. Council Member O'Neill related that the City cannot reach 1,200 very -low-income units using density bonuses, tax incentives are limited and competitive, development agreement monies will probably be used for affordable housing subsidies rather than capital projects, he does not envision residents being excited about high density, he agrees with Community Development Director Jurjis about doing things now because it continues to show good -faith efforts, he agrees with doing a General Plan Amendment and a Council Policy, staff interpretations will be helpful as Council works through General Plan Amendments, Council needs to look at an overlay in the coastal zone and the Airport area, mixed-use in areas like light industrial and the 65 dB CNEL area, and hotel/motel residential conversions with constraints, there could be a Council Policy and General Plan Amendment for hotels/motels to convert 25% of rooms, a Council Policy could incentivize ADU production, Council should be aggressive in the ultimate number of ADUs, in a General Plan Amendment and Council Policy, Council should have a preference for a diversity of economic uses for office buildings, parking structures, and commercial buildings, the Planning Commission could review annually or biennially areas of mixed-use that have only single uses with a preference for encouraging residential in a mixed-use environment, a Council Policy for the short term and a General Plan Amendment for the ng term shows progress and will achieve more housing units, when the Housing Element Land Use Element come back, the conversation will be much harder, and right now, Co 101 uId get to the easier portions and move forward. Council Member Blom noted there are a number of exapty office spaces in Newport Center, stated that business and citizen interests align when Council makes something better, and better does not always mean bigger and more robust. He stated that the City is blessed with people who want to rebuild from withi, ieved the Irvine Company not wanting to work with the City is a disservice, recovery is probably n comng to Newport Center, and indicated that the process needs to move forward quit er. Council Member Dixon supporte accelerating changes to the General Plan and Council Policy to provide a framework. In respo e t+er question, Community Development Director Jurjis explained that the General Plan, offing Element, and Land Use Element are tied together, and suggested that Council do the easy portions now without triggering the Greenlight provision, such as conversion of hotel units and mixed-use in light industrial areas. Council Member Dixon believed the industrial area of West Newport and Newport Center are right for mixed-use, residential, commercial, and possibly a new village and wondered whether Council can accelerate that discussion, the City needs as many ADUs as possible and could incentivize property owner# to construct ADUs, proposed legislation restricts parking requirements, and expressed concern about the City's financial health and maintenance of the City in the future because of changes to development impact fees. Council Member Brenner referred to the irony of needing the Irvine Company's help now and the need to mend fences, and hoped the Irvine Company can see how they and the City can help each other. In response to her question, Community Development Director Jurjis advised that a General Plan Amendment is worth having a conversation with the Irvine Company. Council Member Brenner suggested having a study session specifically about affordable housing and a conversation with the Newport -Mesa Unified School District about their property above Banning Ranch. She encouraged forming a program where staff assists property owners with determining if they can construct an ADU and a citizen -driven program to brainstorm a specific area plan for West Newport. Council Member O'Neill clarified that the Irvine Company has not refused to be involved in the process, but they prefer not to be involved right now, and that his comments about low -hanging fruit apply to all property owners and suggested using a dual track of General Plan Amendments and Council Policies. Volume 64 - Page 632 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Council Member Blom concurred with moving forward with some ideas that do not need to go to the Coastal Commission, if possible, and hoped to mend fences with those who want to invest in the City. Mayor Avery concurred with proceeding quickly, stated that the City needs to create housing and receive the community's buy -in, indicated that the City needs well-built projects and oversite in order to create communities that reflect Newport Beach, added that the important thing is to keep the integrity of current neighborhoods and villages, and believed ADUs will impact parking. Council Member Dixon indicated the Irvine Company's vision created the City that residents enjoy today and it would be a big miss not to have their input, encouraged staff to start conversations with them, and noted that legislation has changed planning laws and taken away local control in the last two years. Jim Mosher criticized the City's online efforts for public engagement, expressed confusion as to what will be delivered on October 15, discussed staffs interpretation of changing just the Housing Element without triggering Greenlight, but point out that converting hotel rooms to housing will trigger Greenlight, and noted that staff has iscussed penalties if the City over promises how much development will occur. Nancy Scarbrough believed that what the Stake is asking for is unreasonable, the RHNA numbers are available in the Kimley-Horn re ort distrijluted to the HEUAC in December and provided the numbers, using ADUs for a larg6 portion of the RHNA numbers can give the City time to work out the percentages of ADUs versus high-density development versus reallocation, the City needs a bigger plan to look at this, estimating a higher number of ADUs and monitoring them will give the City time to plan for high-density hou ing, the percentages of 5% low-income to 95% above -moderate or moderate income are not attTnable, and the fact that West Newport is the only industrial area needs to be considered when discussing converting it to housing and commercial. 'Ar N David Tanner believed it is okay for the City not to be in compliance with HCD requirements because the City will not be alone, the State having an enforcement person is inevitable, stated he wanted to hear more about the-gaaeral welfare of residents and how changes will improve quality of life, Aggested that Council look at proactive measures to protect quality of life, related that the talk about circumventing Greenlight is disheartening, talk about piecemealing the General Plan is unbelievable, and urged Council to reconsider the proposed course of action and to look to the pypleof Nei' port Beach first. � A/ Council Member O'Neill related that no one said anything about circumventing Greenlight, a General Plan AmeAKent is not piecemealing, Council is talking about low -hanging fruit, there will be many opportunities for public comment and discussion on this, there is a lot of work being done here, and some of the dual -tracking is more appropriate for General Plan Updates and some for a Council Policy. He proposed staff return with a Council Policy regarding 1) a preference for ADU production, direction to staff to interpret codes consistent with that preference, and direction to staff and the Planning Commission to bring further policy for code changes to be consistent with that as HCD provides further guidance; 2) a direction to the Planning Commission to review annually mixed-use zones for properties that have single, nonresidential uses and to provide policy ideas that incentivize residential in mixed-use areas; and 3) a preference for interpretation of codes that allow 1:1 hotel/motel conversion but no more than 30% of the actual hotel/motel and that such interpretation carry with it some type of development agreement, in -lieu fee, or both. The City Council unanimously concurred to bring this policy back at a future meeting. Volume 64 - Page 633 City of Newport Beach Study Session and Regular Meeting February 9, 2021 III. PUBLIC COMMENTS An unidentified speaker believed staff and the Planning Commission will find an amendment for short- term lodging on Newport Island that the California Coastal Commission will entertain, Newport Island residents want stronger codes, enforcement, and owner -occupied because third -party operators are motivated by profit rather than community. He also noted that more than 130 Newport Island residents signed a petition expressing support for the ban because short-term lodging is banned in R-1 zones. Craig Sheets utilized a presentation to discuss narcotics, guns, nuclear radiation, and Vulcans. Dorothy Kraus noted she could not hear the names of the prior speakers. Regarding Item 4 (Resolution No. 2021-5: City Council Policy G -Series Revisions (City Trees)), Jodi Bole appreciated Council's efforts, asked Council to consider adopting testing for all Landmark Trees, and appreciated Council embracing green infrastructure. IV. RECESSED — 6:00 p.m. V. RECONVENED AT 6:23 P.M. FOR REGULAR MEETING VL ROLL CALL ow Present: Mayor Brad Avery, Mayor Pro Tem Keviji Muldoorl, Council Member Noah Blom, Council Member Joy Brenner, Council Memberne Dixon, Council Member Duffy Duffield, Council Member Will O'Neill VII. INVOCATION — Council Member Brenn VIII. PLEDGE OF ALLEGIANCE — Council Member Duffield IX. NOTICE TO THE PUBLIC X. CITY COUNCIL ANNOUNrMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Brenner: • Used a slide to announce thlealt grades 2021 Awards for Hoag Hospital Council Member O'Neill: • Announced Housing Element Update Advisory Committee and Finance Committee meetings on February 17 and 18, 2021, respectively, his attendance at the Orange County Business Council dinner, and an upcoming Witte Lecture via Zoom • Displayed a slide regarding the Circulation Element Visioning Workshop on February 10, 2021 Council Member Dixon: • Attended Southern California Association of Governments (SCAG) Regional Council and Community Economic and Human Development Committee meetings • Announced City Manager Leung will update Council on homelessness on February 23, 2021 Council Member Blom: • Announced his visit to various homeless hotspots in the City, stated he talked with them, noted ways in which the City is helping the homeless, and appreciated staffs efforts and outreach Council Member Duffield: • Announced his 41St anniversary and thanked Terry for her support and assistance Volume 64 - Page 634 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Mayor Pro Tem Muldoon: • Displayed a slide to announce Small Business Support Grants applications will be accepted February 10-17, 2021 and information can be found at newportbeachca.gov/supportgrants Mayor Avery: • Displayed slides to announce that his interview of Dr. Martin Fee from Hoag Hospital can be viewed at newportbeachca.gov/nbtv or youtube.com/newportbeachgov, the State of the City Address on February 10, 2021 via Zoom with registration at www.speakupnewport.com, and City Hall will be closed on Monday, February 15, 2021, for the President's Day Holiday XI. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of a resolution expressing support for actions to further strengthen local authority and control [Dixon] The City Council unanimously concurred to bring the item back at a future meeting. XII. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Brenner requested a minute amendment reflect the correct title for the organization "Stop Polluting Our Newport (SPON)" on page 614. XIII. CONSENT CALENDAR 1 READING OF MINUTES AND ORDINANCES 1. Minutes for the January 26, 2021 City council Regular Meeting [100-2021] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances 'Alt 1 Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCES FOR ADOPTION 3. Ordinance Nos. 2021-1 a02x2: Approving Koll Center Newport Planned Community Development Plan AmeIlImpact ent and a Development Agreement for the Residences at 4400 Von Karman ProjecA2020-061) (C-7904-2) [38/100-20211 a) Find that EnvironmenReport Addendum No. ER2020-003 for the Residences at 4400 Von Karman Project certified by the City Council on January 26, 2021 was prepared in compliance with California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3; b) Conduct second reading and adopt Ordinance No. 2021-1, An Ordinance of the City Council of the City of Newport Beach, California, Approving 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 c) Conduct second reading and adopt 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 4400 Von Karman Avenue (PA2020-061). Council Member O'Neill recused himself due to his membership at the Pacific Club located at 4110 MacArthur Boulevard. RESOLUTIONS FOR ADOPTION 4. Resolution No. 2021-5: City Council Policy G -Series Revisions (City Trees) [100-20211 Volume 64 - Page 635 City of Newport Beach Study Session and Regular Meeting February 9, 2021 5. a) Determine this action is categorically exempt from the California Environmental Quality Act ("CEQA') pursuant to Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because the activities are in the classes of projects which have been determined not to have a significant effect on the environment; and b) Adopt Resolution No. 2021-5, A Resolution of the City Council of the City of Newport Beach, California, Adopting Revised City Council Policies G -I (Retention, Removal and Maintenance of City Trees), G-3 (Preservation of Views), and G-6 (Maintenance and Planting of Parkway Trees). Resolution No. 2021-9: Denying General Plan Amendment for the Shell Service Station Car Wash Located at 1600 Jamboree Road (PA2016-093) [100-20211 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15270 of the California Environmental Quality Act (CEQA) Guidelines, projects which a public agency rejects or disapproves are not subject to CEQA review; and b) Adopt Resolution No. 2021-9, A Resolution of the City Council of the City of Newport Beach, California, Denying General Plan Amendment No. GP2018-001 and Conditional Use Permit No. UP2016-025 for the Addition of a Car Wash to the Existing Vehicle Service Station Located at 1600 Jamboree Road (PA2016-093). Council Member O'Neill voted "no" to Item 5. CONTRACTS AND AGREEMENTS 6. 2019-2020 Tidegate Improvement Project — N (19F03) [38/100-20211 a) Accept the completed work and authorize the b) C) for Contract No. 7464-1 Aice of Completion for the project; Authorize the City Clerk to release the Labor and M rials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and Release Faithful PerformanQidjWd one year after acceptance by the City Council. 7. Police Station Gun RanItor — Notice of Completion for Contract No. 7080-1 (19F12) [38/100-20211 a) Accept the completed thor e the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clase the Labor and Materials Bond 65 days after the 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. 8. Police Station Locker Room Remodel—Award of Contract No. 7872-1 (21F12) [38/100-20211 a) Find this project ellRffipt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; b) Approve the project drawings and specifications; c) Award Contract No. 7872-1 to Optima RPM, Inc. (Optima RPM) for the total bid price of $762,000.00 (base bid plus additive bid item), and authorize the Mayor and City Clerk to execute the contract; d) Establish $78,000.00 (approximately 10 percent) contingency to cover the cost of unforeseen work not included in the original contract; and e) Approve Budget Amendment No. 21-030 appropriating $366,254.06 in increased expenditures in Account No. 57101-980000-21F12 from Asset Forfeiture Fund and General Fund unappropriated fund balances. 9. Police Station Locker Room Remodel — Approval of Purchase Agreement for Locker Room Lockers (C-7872-2) [38/100-20211 Volume 64 - Page 636 City of Newport Beach Study Session and Regular Meeting February 9, 2021 a) Determine that this purchase is exempt from the California Environmental Quality Act ("CEQA') pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve a Purchase Agreement with Gatehouse MSI, LLC dba McMurray Stern for the purchase of Spacesaver Corporation brand lockers at a not -to -exceed price of $344,546.13, and authorize the Mayor and City Clerk to execute the Agreement; and c) Approve Budget Amendment No. 21-029 appropriating $336,964.43 in increased expenditures in Account Nos. 1050063-911024; 1050061-911024; and 1050062-911024 from Asset Forfeiture Fund unappropriated fund balance. 10. Amendment No. Two to Agreement with Urban Graffiti Enterprises, Inc. for Graffiti Abatement Services (C-8061-1) [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) Approve Amendment No. Two with a nine-month extension to the Maintenance Service Agreement with Urban Graffiti Enterprises, Inc. for graf 'ti abatement services with a total increase in contract compensation of $210,000, and auth ize the Mayor and City Clerk to execute the agreement. 0 11. Award of On -Call Plumbing Maintenance and Repair Services Agreements with Verne's Plumbing, Inc. (C-7140-2) and PHA Professional Services, Inc. (C-8660-1) [38/100-20211 a) Determine this action is exempt from the CaliforniaNnvironmental 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 On -Call Plumbing Maintenance and Repair'Service Agreements with Verne's Plumbing Services, Inc. and with PHA Professio4al Services Inc., -with each agreement being for a three- year term and total amount not -to -exceed $155,2W, and authorize the City Mayor and City Clerk to execute the agreem MISCELLANEOUS 12. Confirmation of Mayor Brad q1=0s City Council Appointment to the Finance Committee [100-20211 k, a) Determine )his 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) Confirm Mayor Brad Avery's appointment of Council Member Noah Blom to serve on the Finance Committee. Motion by Mayor Pro Tem Muldoon, seconded by Council Member Dixon, to approve the Consent Calendar; and noting the amendments to Item 1, the recusal by Council Member O'Neill to Item 3, and the "no" vote to Item 5 by Council Member O'Neill. XIV. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XV. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher discussed the Board of Supervisors District 2 Special Election, ranked choice voting versus runoff elections, and steps for the City to implement ranked choice voting. XVI. PUBLIC HEARINGS 13. Ordinance No. 2021-4: Amending the Local Coastal Program Implementation Plan to Include Balboa Village Parking Management Overlay District and Plan (PA2017-046) [100-20211 Volume 64 - Page 637 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Community Development Director Jurjis and Deputy Community Development Director Campbell utilized a presentation to discuss the purpose of the Balboa Village Parking Management Overlay District (PM -1), the area affected, PM -1 background, the Local Coastal Program (LCP) amendment process, the amendment, PM -1 components, and recommended actions. Council Member Dixon related that this was passed in January 2015, stated this is a good example of how other government agencies move, reiterated the amendment process, believed this assists businesses with parking, noted that she looks forward to how it changes Balboa Village, and thanked staff for shepherding the overlay. Mayor Avery opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Dixon, seconded by Council Member Blom, to a) find the action statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15265(a)(1) of the California Code of Regulations, Title 14, and Chapter 3 of the Coastal Act. Section 15265(a)(1), which exempts local governments from the requirements of preparing an environmental impact report or otherwise complying with CEQA in connection with the adoption of a Local Coastal Program; and b) waive full reading, direct the Ohy Clerk to read by title only, and introduce Ordinance No. 2021-4, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Local Coastal Program Amendment No. LC2017-001 as Modified by the California Coastal Commission to Title 21 (Local E'oastal Program Implementation Plan) of the Newport Beach Municipal Code Related to the Iyarking Management Overlay District and Plan (PA2017-046), and pass to second reading on Febr%rq 23, 2021. g The motion carried unanimously. 14. Local Coastal Program Amendment related to Restricting Short Term Lodging on Newport Island Title 21 (PA2020-326) [100-2021 to receive and file the continuance. The motion carrie XVII. CURRENT BUSINESS 15. Presentation of Phase VI Recommendations for Sculpture Exhibition in Civic Center Park (C-8661) [381100-2021] Library Services Director Netherton introduced Richard Stein, Arts Orange County, who provided the company's background and utilized a presentation to discuss the selection criteria, public poll summary, the ten sculptures and three alternate sculptures, and the proposed locations for the sculptures. Mayor Avery thanked Mr. Stein, believed public art lifts spirits, and noted a lot of people were enjoying the public art on a recent sunny Saturday and the art is achieving its mission. Council Member Dixon stated the Sculpture Garden continues to get better, commended Mr. Stein, the Arts Commission, and the public, and recalled Council Member Brenner speaking about the importance of art before she was on the City Council. She suggested the Arts Commission consider weighting the public vote more than the jury vote, since this is a public garden of sculptures and the public should have a larger say, and preferred the selection of more Southern California artists when possible. Volume 64 - Page 638 City of Newport Beach Study Session and Regular Meeting February 9, 2021 Council Member Brenner believed public input is growing. In response to her question, Mr. Stein reviewed the selection process. Council Member Brenner recalled her earlier words as Council should give more direction to the Arts Commission about its preferences for sculptures and requested a future agenda item, perhaps a study session, to discuss the kinds of art that the public wants to see. Motion by Council Member Dixon, seconded by Council Member Brenner, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) approve the 10 sculptures, three alternates and the proposed locations within Civic Center Park as recommended by the City Arts Commission for the temporary sculpture exhibit. With Mayor Pro Tem Muldoon voting "no," the motion carried 6-1. 16. Coronavirus (COVID-19) Update [100-20211 City Manager Leung and Fire Chief Boyles utilized a presentation to discuss Orange County cases, the positivity rate, requirements to move to the red tier in the State Blueprint, status of City facilities and recreation, vaccination distribution statistics and points if disbursement (POD), authorization for Newport Beach community clinics, and public safety cases. XVIII. MOTION FOR RECONSIDERATION — None XIX. ADJOURNMENT — Adjourned at 7:33 p.m. in AM The agenda and amended agenda were posted on electronic bulletin board located in the entrance of Center Drive on February 4, 2021, at 4:00 p.m. respectively. Leilani I. Brown City Clerk and John Kruse website and on the City Hall Council Chambers at 100 Civic 6, 2021, at 12:00 p.m., and February Brad Avery Mayor Volume 64 - Page 639