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HomeMy WebLinkAbout03/09/2021 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting March 9, 2021 I. ROLL CALL - 4:00 p.m. Present: Mayor Brad Avery. Council Member Noah Blom, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill Excused: Mavor Pro Tem Kevin Muldoon II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar In response to Council questions, Community Development Director Jurjis clarified that only the Code amendments would go before the Planning Commission if Council approved Item 4 (Resolution Nos. 2021-18 and 2021-19: Adoption of City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Initiation of Amendments Related to Increasing Housing Opportunities (PA2021-019)). Further, the policy encourages housing production but does not waive any Code requirements. Council Member O'Neill added that the policy does not pertain to a specific project. SS2. An Overview on Code Enforcement Program [100-20211 Community Development Director Jurjis and Acting Code Enforcement Supervisor Murrav utilized a presentation to discuss the purpose. responsibility, and history of the Code Enforcement Division, the two tiers of the fine schedule, types of enforcement. what is enforced, the number of code enforcement cases, Short -Term Lodging (STL) cases in 2020, and the STL hotline. In response to Council Member O'Neill's question, Acting Code Enforcement Supervisor Murray related that the bulk of hotline noise complaints are for the Peninsula area, from 32°, Street to West Newport. Acting Code Enforcement Supervisor Murray continued the presentation with the citation appeal process and the Tier 1 enforcement procedure. In response to Council Member Dixon's question, Acting Code Enforcement Supervisor Murray advised that a property owner has seven days to correct a trashcan issue following receipt of a notice. but the Newport Beach Municipal Code (NBMC) does not specify a number of days. Council Member Dixon noted that seven days may be too long. Acting Code Enforcement Supervisor Murray continued the presentation with Tier 2 enforcement procedures. In response to Mayor Avery's question. Acting Code Enforcement Supervisor Murray indicated 66 citations were issued for STL violations in 2020. and noted that the fine increased from $250 to $1.000 in 2020. In response to Council Member O'Neill's question. Acting Code Enforcement Supervisor Murray reported that no revocation or suspension of an STL permit has occurred yet. In response to Council Member Dixon's question. Acting Code Enforcement Supervisor Murray advised that hotels use commercial haulers and dumpsters and have pickup schedules. Council Member Dixon believed STLs should be considered a commercial entitv and have different rules than residences. Volume 64 - Page 651 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Acting Code Enforcement Supervisor Murray concluded the presentation by highlighting staffing and schedules. Community Development Director Jurjis requested direction regarding increased proactive enforcement for specific violations, nighttime staffing, appeal time for citations, and Tier 1 fines. In response to Council Member Brenner's question, Community Development Director Jurjis indicated parking on a driveway approach blocks public access, which the Vehicle Code prohibits; only police officers can enforce the Vehicle Code; and a provision would need to be put in the NBMC so that the parking enforcement vendor has the authority to cite. Acting Code Enforcement Supervisor Murray added that this type of parking happens frequently on East Balboa Boulevard. Mayor Avery noted that cars are also parked on the apron. In response to Council Member Dixon's questions, Community Development Director Jurjis reported that the Finance Department is working on a Code change that will be brought to the Council at a later time, stated that before 2012, the City had only Tier 1 fines and both Council and staff felt the fines were not effective, created Tier 2, and amended Council Policy to be more aggressive and to reduce the length of the grace period. Acting Code Enforcement Supervisor Murray indicated two to three citations are issued each weekend for construction noise, which is down from 30 per weekend. Council Member Dixon supported aggressive enforcement as allowed by law, using Transient Occupancy Tax (TOT) revenue to fund enforcement, changing the appeal period to 21 days, and increasing Tier 1 fines. Council Member Brenner concurred with decreasing the appeal period to 21 days and believed 48 hours should be sufficient time for a property owner to correct a trash notification. In response to her questions, Community Development Director Jurjis and Acting Code Enforcement Supervisor Murray advised that a citation is issued when the Police Department issues a Disturbance Advisement Card (DAC) or a Loud and Unruly Gathering Ordinance (LUGO), and added that, if Council supports seven nights of additional enforcement, staff will conduct a fee study. In response to Council Member O'Neill's questions, Community Development Director Jurjis stated that 15 STL citations have been issued since October 1, 2020, due to hotline complaints, agreed improvements were needed to the hotline, and noted that the part-time staff position is needed to help with enforcement on weekends. City Manager Leung clarified that additional staff resources are needed for overnight enforcement. In response to Mayor Avery's question, Acting Code Enforcement Supervisor Murray noted complaints during the weekend include construction on Saturdays and landscape work on Sundays. Council Member O'Neill supported four nights of staffing during the summer months, if the budget is sufficient, with a review of citations in the fall, and concurred with the suggestions to increase fines and reduce the appeal period. In response to Council Member Dixon's questions, Acting Code Enforcement Supervisor Murray noted that an email to the hotline results in a case being started and an investigation, and that the challenge is contacting the STL tenant. Community Development Director Jurjis indicated that having the hotline notify the emergency contact and Code Enforcement Officer is working, but noise may have stopped by the time the Code Enforcement Officer arrives, confirmed the Code Enforcement Officer has to experience the violation, and the Code Enforcement Officer will issue a warning if noise is not loud enough for a citation. He further stated that the number of STL permits has increased, but the number of Code Enforcement Officers has decreased and added that Code amendments are pending before the California Coastal Commission. Acting Code Enforcement Supervisor Murray clarified that the nighttime officer began in January Volume 64 - Page 652 City of Newport Beach Study Session and Regular Meeting March 9, 2021 2021. Council Member Dixon requested the number of emails received be included in future reports. Council Member Duffield supported Council Member Dixon's comments, noted the difference between a complaint and a citation, agreed email counts need to be included, emphasized the City needs to find ways to help the residents since noise from STLs affects property values, and believed that there are more complaints than listed. In response to Council Member Brenner's questions, City Attorney Harp advised that it would be inappropriate for Council to direct enforcement on a particular issue. Acting Code Enforcement Supervisor Murray indicated some YouTube celebrities are occupying a STL on Newport Island, but there have been no violations and the owner is checking the property frequently. He noted that Code Enforcement Officers can inspect STLs and recently issued a corrections letter to a property owner who is working with planning staff to comply while still renting the STL. He further stated that animal control handles complaints regarding off -leash dogs. Community Development Director Jurjis clarified that the NBMC does not tie a building code violation to an STL permit, the property owner in question needs prior work permitted, and stated that a Building Code violation could be tied to a STL permit if Council wishes. City Attorney Harp added that staff can work on associating Building Code violations with an STL permit. Council Member Brenner believed there could be a more accurate analysis after the summer and pandemic. Council Member Blom noted staff needs manhours to make enforcement happen, STL is becoming a focus of irritation for residents, more citations were issued for STLs than anything else, code enforcement is trending well, and stated the request for 0.75 FTE is amazing compared to the increase in STLs. Council Member Dixon related that the City has been operating in a pandemic, so the numbers are low compared to normal, the Building Code should be fully integrated with enforcing STLs, and an STL's permit should be on hiatus until the property is brought into compliance. In response to her questions, City Attorney Harp reported enforcement of STL permits includes all violations of the NBMC and State law, and stated that staff would issue a red tag if there was a safety issue and would stop an STL from operating. He added that occupancy is based on the property's overall square footage, not the number of bedrooms, and noted that officers need discretion for enforcement. In response to Council Member Brenner's question, Community Development Director Jurjis indicated the NBMC defines a bedroom by use of the room, there is no requirement for a closet, and the conversion of a closet into a bedroom with the proper window is not a life safety issue. Mayor Avery commended staff for being able to carry out code enforcement duties with the number of STL units in the City, Newport Beach is a great town for businesses, an STL that impacts the neighborhood hurts other businesses, Council needs to focus on property owners being good partners and managing their properties well, and Council has to send a clear message and help residents. Denys Oberman thanked Council for bringing forward this issue, indicated the roles of the various enforcement groups need to be clarified so residents know who to call, fines should be the same for STL and non-STL nuisance complaints, and believed the number of citations is a fraction of the number of complaints. Bud Reveley remarked that code enforcement officer authority is confusing, agreed with Council Member Dixon's comment about suspending STL permits for code violations, suggested that leases be provided to staff, expressed concern that code enforcement officers cannot cite parking violations, believed the law that says a parking ticket is also a violation to the STL is irrelevant, Volume 64 - Page 653 City of Newport Beach Study Session and Regular Meeting March 9, 2021 discussed Boardwalk uses and the need for a solution for the Boardwalk, and the California Coastal Commission. Nancy Scarbrough reported that the City has an app for reporting code violations, suggested staff make the public more aware of the app, and asked about the process for a complaint from the app. Carmen Rawson suggested that information about the specific areas of complaints and citations would be useful and believed code enforcement staff should work the nights and hours when the most complaints are made. Scott McFetters believed the amount of phone calls and emails to the Police Department and code enforcement does not correlate to the statistics on the slides, the data reflects only the number of events and not the number of calls about an event, holding the operators and owners accountable would be good, having STLs on Newport Island does not make sense, and STL permits should be suspended for operating at a higher capacity than permitted. Regarding enforcement, City Attorney Harp recommended Council leave discretion with code enforcement officers and convey a desire for aggressive enforcement. With Council Member Blom voting "no" and Mayor Pro Tem Muldoon absent, there was a 5-1 consensus to increase Tier 1 fines. With Council Member Blom voting "no" and Mayor Pro Tem Muldoon absent, there was a 5-1 consensus to change the appeal time for citations from 30 days to 21 days. With Mayor Pro Tem Muldoon absent and Council Member O'Neill abstaining, there was a 5-0 consensus to schedule staff for four additional night shifts, if the budget allows, with the summer months as a trial period. City Attorney Harp advised that proactive enforcement across the board would require a significant amount of new staffing. City Manager Leung believed a blanket proactive policy statement would not assist staff since it requires additional resources, and noted that proactive enforcement in specific areas would be based on resources. Council Member Dixon preferred to maintain reactive enforcement, unless officers see something they need to proactively enforce, and stated that if staff needs more resources, they should come back to Council with a request. Acting Code Enforcement Supervisor Murray confirmed that health and safety issues are proactively enforced. Council Member Dixon defined proactive enforcement as not waiting for a complaint, such as violations on the Boardwalk. SS3. Capital Improvement Program (CIP) Early Look [100-2021] Public Works Director Webb and Deputy Public Works Director Houlihan utilized a presentation to discuss Council CIP, selection of new projects, significant projects completed this fiscal year (FY) and under construction, proposed FY 2021-22 CIP projects, the deferred projects list from FY 2020-21, and facility projects. City Clerk Brown announced she will be recusing herself during discussions relative to the Ocean Boardwalk / Parking Lot Improvement Project due to real property interests conflicts. Council Member Dixon announced she will be recusing herself during discussions relative to the Landscape Enhancement Program — Lido Isle Median due to potential personal financial effect. Volume 64 - Page 654 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Council Member Blom announced he will be recusing himself during discussions relative to the following projects due to real property interest conflicts: Utilities Undergrounding Assessment No. 111, Balboa Island Drainage Improvements, Landscape Enhancement Program - Lido Park Rehabilitation, and Marine Avenue Rehabilitation. Public Works Director Webb and Deputy Public Works Director Houlihan continued the presentation and discussed streets and drainage projects, transportation projects, the Balboa Island trolley, water quality and environmental projects, and parks, harbors and beaches projects. In response to Council Member Dixon's question, Deputy Public Works Director Houlihan stated the demolition of the restaurant on Newport Pier is in the budget. Public Works Director Webb added that a permit for the demolition has been approved, and an application for pier work is pending with the California Coastal Commission. Deputy Public Works Director Houlihan continued the presentation and discussed water and wastewater projects, and miscellaneous projects. In response to Council Member Dixon's question, Deputy Public Works Director Houlihan indicated funding is sufficient for the oceanfront encroachment removal. Deputy Public Works Director Houlihan continued the presentation with recommended projects from the unfunded needs list. City Manager Leung clarified that projects were deferred as part of the budgeting for COVID-19 impacts, and a group of deferred projects were identified as priorities for the baseline $5 million CIP budget and are proposed as new projects, stated that the recommended projects may be delayed, but they are next in line to move from the deferred list to the budget, added that based on budget surpluses, these projects are good candidates for using the funds, and noted that a third group of projects does not need to be funded now or staff feels could be deferred. Council Member O'Neill requested that the Streetlight Rehabilitation Program be moved into the CIP due to cost savings from the new lights and to increase public safety. In response to Council Member Brenner's question, City Manager Leung related that funding for the General Plan Update is primarily for consultant services in order to update the Housing, Circulation, and Land Use Elements. In response to Council Member Dixon's questions, City Manager Leung understood the majority of the funding is for the Land Use Element component, $650,000 the following year should finish the core elements, and the intention to complete the entire General Plan. Update. Deputy Public Works Director Houlihan concluded the presentation with a discussion about the five-year look ahead of significant projects. Jim Mosher discussed the Peninsula Encroachment Program at Peninsula Point, noted the Oceanfront Encroachment Fund comes from West Newport oceanfront homeowners, and asked if Peninsula Point homeowners are being asked to contribute funds toward the City's costs for removing their encroachments from the public beach. III. PUBLIC COMMENTS Bill Taormina expressed support for Item 11 (Ordinance No. 2021-6: Zoning Code Amendment to Allow the Operation of Wine Tasting Rooms Within the Industrial Zoning (IG) District (PA2020-042)) and hoped Council moves forward with the ordinance. Volume 64 - Page 655 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Jim Mosher stated the Community Room is being used as a Vote Center, one candidate obtaining a majority of the votes is unlikely to happen since there are five candidates, and the solution to this election and future City elections is to have ranked -choice voting. Council Member Dixon congratulated Angela Crespi on being named Deputy City Manager in Hermosa Beach and thanked her for her service to the City. City Attorney Harp reported the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the title. IV. CLOSED SESSION - Council Chambers Conference Room A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter V. RECESSED - 5:58 p.m. VI. RECONVENED AT 6:30 P.M. FOR REGULAR MEETING VII. 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 City Attorney Harp announced that no reportable actions were taken. IX. INVOCATION - Reverend Dr. George Okusi, St. John the Divine Episcopal Church X. PLEDGE OF ALLEGIANCE - Mayor Avery XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON ;COMMITTEE ACTIVITIES Council Member Brenner: • Attended meetings of the Ad Hoc Committee on Short Term Lodging, the Corona del Mar Business Improvement District (BID), and the City Council Solid Waste Working Group • Used a slide to announce the March 23, 2021 public hearing regarding the proposed Proposition 218 recycling service rate increase Council Member O'Neill: • Used a slide to announce Housing Element and Circulation Element Workshops (newp orttogether. com) • Attended the funeral of Richard Luehrs • Announced a Finance Committee meeting on March 11, 2021 Council Member Dixon: • Utilized slides to discuss the Boardwalk Ambassador Program and announce a Virtual District Town Hall Meeting on March 18, 2021 at 5:00 p.m. • Announced Speak Up Newport on March 10, 2021 will discuss quality of life in the City Volume 64 - Page 656 City of Newport Beach Study Session and Regular Meeting March 9, 2021 • Attended and provided updates from an Aviation Committee meeting, Aviation Noise and Emissions Symposium, and Southern California Association of Governments (SCAG) meeting Council Member Blom: • Attended the Aviation Noise and Emissions Symposium • Appreciated the reopening of sports and harbor activities over the weekend Mayor Avery: • Utilized slides to announce the entrance channel dredging project, east jetty repairs, and the Short Term Lodging complaint hotline (949-718-3443) XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of waiving Newport Beach's business license tax for one year for businesses in sectors shut down by the Governor's order [Avery and O'Neill] Council Members Blom and Duffield recused themselves due to business interest conflicts. The City Council concurred 5-0 to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 4 (Resolution Nos. 2021-18 and 2021-19: Adoption of City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Initiation of Amendments Related to Increasing Housing Opportunities (PA2021-019)), Jim Mosher questioned the appropriateness of Council approving Council Policy K-4 since it is short-term direction to staff, noted the Housing Element Update Advisory Committee (HEUAC) did not review the policy, and believed the provision for converting hotel rooms will create hundreds of new dwelling units without amending the General Plan or triggering a Greenlight vote. Dylan Jarrett, addressing Item 4, stated he was pleased that Council is taking steps to encourage and promote affordable housing, appreciated the encouragement of Accessory Dwelling Units (ADU) and greater implementation of mixed-use construction, and hoped Council understands that Council Policy K-4 will not replace the 2,000 units the City wants to cut from its Regional Housing Needs Assessment (RHNA). Lawrence Allan, Roy Allan Slurry Seal Inc. (Roy Allan), offered to answer Council questions regarding Item 5 (Slurry Seal'Program — Award of Contract No. 7893-1 (Project No. 21R04)) at the appropriate time. David Tanner, addressing Item 4, stated the City needs to take additional steps to address RHNA requirements, and believed Council Policy K-4 authorizes staff to develop interpretations and return to Council for further evaluation and public review. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the February 23, 2021 City Council Regular Meeting [100-20211 Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. Volume 64 - Page 657 City of Newport Beach Study Session and Regular Meeting March 9, 2021 ORDINANCE FOR ADOPTION 3. Ordinance No. 2021-5: Adoption of a Non -Conforming Sign Code Amendment Ordinance (PA2019-184) [100-20211 a) Find this project categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3), the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment; and b) Conduct second reading and adopt Ordinance No. 2021-5, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 20.42.140 (Non -Conforming Signs) to Remoue the Amortization of Nonconforming Signs (PA2019-184). Council Member Duffield recused himself on Item 3 due to potential business interest conflicts. RESOLUTIONS FOR ADOPTION 4. Resolution Nos. 2021-18 and 2021-19: Adoption of City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Initiation of Amendments Related to Increasing Housing Opportunities (PA2021-019) [100-20211 a) Determine this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), and 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2021-18, A Resolution of the City Council of the City of Newport Beach, California, Adopting Council Policy K-4 (Reducing the Barriers to the Creation of Housing) (PA2021-019); and c) Adopt Resolution No. 2021-19, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to the City of Newport Beach General Plan, Coastal Land Use Plans, and Titles 20 (Planning and Zoning) and 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to Increasing Housing Opportunities (PA2021- 019). CONTRACTS AND AGREEMENTS 5. Pulled from the Consent Calendar MISCELLANEOUS 6. Planning Commission Agenda for the March 4, 2021 Meeting [100-20211 Receive and file. Budget Amendment to Accept Grant Funding from the 2021 Hoag Memorial Hospital Presbyterian Community Benefit Program for the OASIS Transportation Program [100- 2021] a) Determine this action is not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(4) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, which provides "the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment" is not considered a project under CEQA, and pursuant to Section 15060(c)(3), actions that are not projects are not subject to CEQA; and b) Accept grant funding in the amount of $50,000 from Hoag Memorial Hospital Presbyterian Community Benefit Program and approve Budget Amendment No. 21-028 to increase revenues by the same amount in 0107033-511045 (OASIS Transportation). Volume 64 - Page 658 City of Newport Beach Study Session and Regular Meeting March 9, 2021 8. Cultural Arts Grants Fiscal Year 2020 (C-8577) [381100-20211 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve recommended recipients for Fiscal Year 2020-21 Cultural Arts Grants as selected by the City Arts Commission in accordance with City Council Policy I-10 — Financial Support for Culture and the Arts. Mayor Pro Tem Muldoon voted "no" on Item 8. 9. Confirmation of Council Member Joy Brenner's Citizen Appointment to the Finance Committee [241100-20211 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) Confirm Council Member Joy Brenner's reappointment of Larry Tucker to serve on the Finance Committee until June 30, 2021. 10. Designation of City's Representatives Under California Government Code Section 54957.6(a) Pursuant to Government Code Section 54957.6(a), designate City Manager Grace Leung, along with Assistant City Manager Carol Jacobs, Human Resources Director Barbara Salvini and Charles Sakai, Esq., as the City's representatives for purposes of labor negotiations with all organizations representing City of Newport Beach employees including, but not limited to, the Association of Newport Beach Ocean Lifeguards, the Newport Beach City Employees Association, the Newport Beach Firefighters Association, the Newport Beach Fire Management Association, the Newport Beach Lifeguard Management Association, Newport Beach Employees League, the Part Time Employees Association of Newport Beach, the Newport Beach Police Association, the Newport Beach Police Management Association, and the Newport Beach Professional and Technical Employees Association. Motion by Mayor Pro Tem Muldoon, seconded by Council Member O'Neill, to approve the Consent Calendar, except the item removed (Item 5); and noting the recusal by Council Member Duffield to Item 3, the "no" vote by Mayor Pro Tem Muldoon to Item 8, and the amendments to Item 1. The motion carried unanimously. XVI. ITEM REMOVED FROM THE CONSENT CALENDAR 5. Slurry Seal Program— Award of Contract No. 7893-1 (Project No. 21R04) [381100-20211 In response to Council Member Brenner's questions, Public Works Director Webb advised that staff was unaware of the allegations until Roy Allan Slurry Seal Inc. protested the bid, staff reviewed the issues with the City Attorney's Office, and believed there are no grounds not to award the contract to American Asphalt South. He noted that both American Asphalt South and Roy Allan have done good work for the City in the past, reported the difference between the bids is about $100,000, and stated that Council may award the contract, reject all bids and direct staff to obtain new bids, or hear the protest. City Attorney Harp indicated Council could hear the protest at a future meeting or defer a hearing to the Hearing Officer. In response to Council Member Dixon's questions, Public Works Director Webb clarified that another bidder, All American Asphalt, has a plant in Irvine with some violations and concerns, and expressed confidence in the bidder's ability to fulfill the contract. Volume 64 - Page 659 City of Newport Beach Study Session and Regular Meeting March 9, 2021 In response to Council Member O'Neill's question, Public Works Director Webb recommended Council not defer the project unless there is a budgetary problem and noted the escalating costs of materials. Motion by Council Member Brenner, seconded by Council Member Dixon, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class i (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) approve the project plans and specifications; c) award Contract No 7893-1 to American Asphalt South, Inc. for the total bid price of $1,042,485.00, and authorize the Mayor and City Clerk to execute the contract; and d) establish a contingency of $20,200.00 (approximately 2 percent of total bid) to cover the cost of unforeseen work not included in the original contract. With Mayor Pro Tem Muldoon voting "no," the motion carried 6-1. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher announced the initial drafts of the Housing Element and the Circulation Element will be available to the public tomorrow and Friday, respectively, and suggested Council reconsider its appointments to the Water Quality/Coastal Tidelands Committee due to errors in the exhibit to the resolution regarding term end dates. XVIII. PUBLIC HEARINGS 11. Ordinance No. 2021-6: Zoning Code Amendment to Allow the Operation of Wine Tasting Rooms Within the Industrial Zoning (IG) District (PA2020-042) [100-20211 Associate Planner Crager provided the staff report regarding licensing, Council direction from August 2020, public outreach, and additional findings. Mayor Avery opened the public hearing. Jim Mosher believed the proposal is inconsistent with the General Plan, Council would need to amend the General Plan before adopting the proposed amendment, the IG District allows ancillary commercial uses, and wine tasting does not support light industrial uses. Phil Greer, Orange Coast Winery representative, clarified that the request is a zoning change, the applicant still has to obtain a Conditional Use Permit (CUP) for a wine tasting room, the ABC Type II license allows the sale of only one brand of wine from one specific vineyard, the Planning Commission found the amendment consistent with the uses, there cannot be food cooked on the premises or live entertainment, operations begin at 5:00 p.m. when businesses and schools in the area are closed, and parking spaces will be available. Jack Plummer indicated he visited the Orange Coast Winery about a year ago, found it to be safe and fun, and expressed support for small businesses in Newport Beach. Gregory Brewsaugh supported adoption of the amendment, believed the area has changed for the better over the past ten years, and a wine tasting room would provide a welcome respite for local residents. Michael Bakke advised that his home and business are located near Orange Coast Winery and believed Orange Coast Winery helps improve the area and increases property values, approval of the amendment will not impact his business, and the business is a quiet place to relax. Sue Brewsaugh encouraged Council to approve the amendment and allow Orange Coast Winery to remain in its location, and stated the business has created a sense of community for its patrons. Volume 64 - Page 660 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Gordon Wanlass requested Council wait to change zoning or the nature of the IG Zone until the General Plan Update occurs. Jeremy Creighton, Common Room Roasters, supported changing the zoning. An unidentified speaker supported the request to change the zoning, reported the business is not a bar, and there have not been any issues with parking. Ian Elliott opposed the request due to parking issues, rezoning an area for one business does not make sense, and the business has been operating illegally. Jeanette Heckert supported allowing a wine tasting room in the IG Zone and indicated parking is not a concern because many local residents would bicycle as opposed to drive to the facility. Hearing no further testimony, _Mayor Avery closed the public hearing. In response to Council Member Dixon's question, Community Development Director Jurjis reviewed non-compliance issues with the business. Council Member Dixon reported she told the owner to go to Balboa Village, the Balboa Wine Tasting Company is a new business in Balboa Village, the real solution is revising the General Plan, and afterschool .activities are generally in the evening. She stated she does not support the request. Mayor Pro Tem Muldoon stated that one thing government can do is help businesses survive, believed the business has evolved, the atmosphere is tame, and the area is expected to change over time. Motion by Mayor Pro Tem Muldoon, seconded by Council Member O'Neill, to a) find this action proposed herein is not a project subject to the California Environmental Quality Act ("CEQA") in accordance with Section 21065 of the California Public Resources Code and Sections 15060(c)(2), 15060(c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines"). The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment; and b) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-6, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Zoning Code Amendment No. CA2020-005 to Amend Section 20.24.020 (Industrial Zoning Land Uses and Permit Requirements), 20.40.040 (Off -Street Parking Spaces Required), 20.48.090 (Eating and Drinking Establishments), and 20.70.020 (Definitions of Specialized Terms and Phrases) of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Allow for Wine Tasting Rooms Within the Industrial Zoning District (IG) (PA2020-042), and pass to second reading on March 23, 2021. Council Member Blom indicated the area is industrial, the future of the area is going to be different, this type of proposal is needed to get the area up and running and to provide revenue streams and productivity, and West Newport is ready for a change. Council Member O'Neill noted the Planning Commission discussion, Orange Coast Winery has operated in the area, and this area will be reviewed closely in the General Plan Update process. In response to Council Member Brenner's questions, Community Development Director Jurjis reported that staff offered Orange Coast Winery a limited term permit, the Fire Department determined the building needed additional fire sprinklers, the owner will not install sprinklers until Council makes a decision about the zoning, and implementing the General Plan Update will probably take 24 months. Council Member Brenner believed residents in the area are eager for mixed uses that provide a sense of community; however, she was not pleased that the business was operating without the proper permits. Volume 64 - Page 661 City of Newport Beach Study Session and Regular Meeting March 9, 2021 In response to Mayor Avery's questions, Community Development Director Jurjis reported the business has been operating without the proper fire suppression for many years, the limited term permit expires after a year, the applicant will need permits for the expansion of use, occupancy, and conditional use, and the area has room for one more wine tasting business. Council Member Dixon took issue that Council is being asked to reward a business that has been in violation of the Fire Code for more than five years, and Council is two years away from updating the General Plan. In response to her questions, Community Development Director Jurjis stated that reducing business space and its occupant load so that fire sprinklers are not required is a possibility, but the business will still need to develop plans and apply for a CUP, and someone can propose a second wine tasting room in the area. Mr. Greer reported the current owner purchased the building in 2019, the previous owner expanded the business from the first bay into the second bay, the current owner wanted to expand into a third bay but the Fire Department told him he could not operate in the second and third bays without fire sprinklers, the current owner wants to use the first bay that has a 49-person capacity, using the first bay does not require fire sprinklers, the business has been closed for more than a year because of COVID-19 and permitting, the Fire Department did not shut down the business, the current owner has met with the Community Development Department and the Fire Department and proposed a plan to operate in compliance with codes and laws, the current owner will install fire sprinklers in the second bay if Council approves the request, and there are no plans to open the third bay because of the economy. Council Member Blom clarified that obtaining a liquor license for a bar is very different from a wine tasting room, and Council is not considering a full-scale bar. In response to Council Member Dixon's question, Community Development Director Jurjis indicated that the change in use was not permitted. Mr. Greer stated the business has a Type 2 license to serve wine that it produces at a different location. Deputy Community Development Director Campbell clarified that the Zoning Code requires the business to manufacture onsite. With Mayor Avery, Council Member Dixon, and Council Member Duffield voting "no," the motion carried 4-3. Mayor Pro Tem Muldoon left the meeting at 8:07 p.m. 12. Resolution No. 2021-20: Newport Beach Junior Lifeguard Building — Approval of Conceptual Design, Fundraising Memorandum of Understanding (C-7524-3) and Exemption Pursuant to Section 20.10.040(A) of NBMC [381100-20211 Deputy Public Works Director Houlihan and Senior Civil Engineer Tauscher utilized a presentation to discuss existing conditions, the initial and revised site location and floor plan, building amenities, the Parks, Beaches and Recreation Commission (PB&R) presentation and comments, building maintenance and operation costs, tentative building schedule, overall site plan and parking analysis, and staff recommendations. In response to Council Member Dixon's questions, Senior Civil Engineer Tauscher and Deputy Public Works Director Houlihan related that parents can drive through the parking lot for drop off, and berming and raising the building above grade will help prevent flood damage. Lifeguard Operations Assistant Chief Halphide stated a variety of factors ruled out 15th Street as a location for the building, and the proposed site was one of three considered. Council Member Dixon appreciated the revised design, the Newport Beach Junior Lifeguard (NBJG) Foundation's and community's efforts to bring this forward, and the opportunity for year-round programs. Volume 64 - Page 662 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Council Member Brenner preferred the new design and expressed concern about flooding. In response to her question, Senior Civil Engineer Tauscher explained that only Junior Lifeguards will use the restrooms when in session, but they will be public restrooms when not in session, and staff can explore ways to deter the homeless from using the entryways -and decks. Council Member Blom commended the NBJG Foundation for donating funds to the project and noted the public can still donate. Public Works Director Webb stated that Graham Harvey, Chairman of the NBJG Foundation, is in attendance and available for questions, if necessary. Mayor Avery reported the community came together to support an iconic program, and the facility will be an asset for the parks program and the community. Council Member O'Neill noted the Memorandum of Understanding (MOU) outlines phases and funding, pointed out that obtaining permits will take some time, and commended the NBJG Foundation for securing substantial contributions. Mayor Avery opened the public hearing. Jim Mosher commented that the California Coastal Commission has approved Junior Lifeguard facilities on beaches in other cities, reduction of the oversized roof will benefit the City's case, and inquired about the reasons for increasing the size of the facility, which is larger than the California Coastal Commission has approved in other cities. Lifeguard Operations Assistant Chief Halphide and Recreation and Senior Services Director Detweiler clarified that the additional space accommodates locker rooms, showers, bathrooms and storage that are not contained in the existing facility, pointed out that the new facility can be programmed for recreational classes, community gatherings, and City meetings and works with the adjacent sports fields, stated that staff anticipates programming the facility for eight months of the year, the facility will serve many uses, Marina Park is operating at maximum capacity, and the community continues to use and request more facilities. In response to Council Member Dixon's question, Recreation and Senior Services Director Detweiler indicated the building will be used for facility rentals, and revenue can be generated through rentals and recreational classes. Charles HIobe suggested citizens working with staff may enhance the City's chances of obtaining California Coastal Commission approval. Hearing no further testimony, Mayor Avery closed the public hearing. Council Member O'Neill looked forward to partnering with the NBJG Foundation for many years. Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 (In -Fill Development Projects) of the California Code of Regulations, Title 14, Division 6, Chapter 3 and CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) review and approve the conceptual design and project cost estimate; c) review and approve the Memorandum of Understanding (MOU) between the City of Newport Beach and the Newport Beach Junior Lifeguard Foundation related to fundraising for the Junior Lifeguard Building; d) adopt Resolution No. 2021-20, A Resolution of the City Council of the City of Newport Beach, Exempting the Junior Lifeguard Building and Recreation Facility from Development Standards Applicable to Projects in the PF (Public Facilities) and PR (Parks and Recreation) Zoning District in Accordance with Section 20.10.040 (Applicability of Zoning Code) of the Newport Beach Municipal Code for the Property Located at 901 East Ocean Front (PA2019-124); and e) direct staff to proceed with preparing and submitting the Coastal Development Permit application package; Volume 64 - Page 663 City of Newport Beach Study Session and Regular Meeting March 9, 2021 completing final Junior Lifeguard Building construction documents, and obtaining bids for construction. With Mayor Pro Tem Muldoon absent, the motion carried 6-0. 13. Ordinance Nos. 2021-7 and 2021-8: Approval of the Fee Study Update [100-20211 Finance Director Catlett and Senior Accountant Schweitzer utilized a presentation to discuss the authority for cost of service fees, the fiscal impact of subsidies, the fee for service methodology, summary of fee study results, fee changes and new fees for the Finance Department, Harbor Department, Public Works Department, and Utilities Department, and additional updates. Council Member O'Neill expressed concern about the subsidy for Regional General Permit (RGP 54) dredging and the Harbor Commission supporting the subsidy to encourage dredging at private docks. Council Member Blom stated he did not favor subsidies, especially a subsidy to dredge a private dock because it benefits a single resident. Council Member Dixon agreed with comments about the dredging subsidy, noted the subsidy from the General Fund totals $7.8 million, and believed costs should be recovered when possible. Council Member Duffield clarified that the property owner is burdened by sediment that comes from somewhere else in the Harbor, but the property owner has to pay for the dredging, emphasized that property owners need to participate in the maintenance of the Harbor, and believed property owners will not dredge if the City does not provide some assistance. In response to Council Member O'Neill's question, Senior Accountant Schweitzer indicated that the 42% dredging subsidy is the same amount as presented to the Finance Committee. Public Works Director Webb shared the history of the subsidy and cost recovery for dredging. Council Member O'Neill noted that dredging improves water quality and increases property values, and suggested a two-stage subsidy in which the property owners pays 50% for the first six months and the full amount after six months. Public Works Director Webb added that certain areas cannot be dredged because of unsuitable material. Council Member Duffield related that the City has deferred upstream sediment from reaching the Harbor, much of a property owner's decision-making centers around sediment returning, sediment inevitably returns, only a limited number of dredging projects can occur each season, and the season is not very long. Council Member Dixon accepted Council Member Duffield's comments to keep the Harbor dredged, and agreed that a subsidy can incentivize dredging. Council Member O'Neill agreed to use staffs recommendation, but wanted Council to look at the subsidy next year and obtain a recommendation from the Harbor Commission regarding the proper incentivizing approach to get more dredging done, and the Harbor Commission should also look at how many permits have been pulled and talk to property owners about how much the cost of the fee factored into their decision to dredge their docks. In response to Council Member Brenner's question, City Manager Leung clarified that subsidies are normally meant to increase access to programs for children and seniors. Recreation and Senior Services Director Detweiler added that subsidies vary and facility costs are also factored into the cost of programs. Council Member Brenner expressed concern about raising recycling fees and waste fees for the general population while subsidizing fees for some groups. Volume 64 - Page 664 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Council Member Duffield stated the public uses the Harbor and public docks, and dredging does not only occur around private docks. In response to Council Member Dixon's questions, Recreation and Senior Services Detweiler reported that the amount of a subsidy is based on community benefit versus individual benefit, history, market rates, and other factors, another consideration is facilities and services for which no fees are charged, and cost recovery for every expense would raise program fees beyond some people's ability to pay. City Manager Leung noted recreation fees will be studied next year. Senior Accountant Schweitzer advised that the $0.10 per minute after ten minutes would be the overstay surcharge at electric vehicle charging stations and would be collected at the time of use. Mayor Avery stated that he prefers to build equity into recreation programs so that anyone can participate, summer programs are important for families, residents probably need an incentive, and the true cost for participation should be broken down. In response to his question, City Manager Leung indicated staff is going to look at a scholarship program for the Newport Beach Junior Lifeguard Program. Mayor Avery opened the public hearing. Jim Mosher believed that some subsidies may be justified by having a greater community benefit for everybody, the library printing costs are ten times that charged by other City departments, the calculation of the flat fee for Harbor appeals is not the correct approach, and the disparate costs should be weighted by the number of each type of appeal filed. Hearing no further testimony, Mayor Avery closed the public hearing. Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) adopt Resolution No. 2021-21, A Resolution of the City Council of the City of Newport Beach, California, Adopting and Revising Certain Fees Within the Schedule of Rents, Fines, and Fees and Updating the Methodology for Annual Consumer Price Index Calculations; c) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-7, An Ordinance of the City Council of the City of Newport Beach, California, Amending Exhibit A to Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery, and pass to second reading on March 23, 2021; and d) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-8, An Ordinance of the City Council of the City of Newport Beach, California, Enacting Newport Beach Municipal Code Section 12.44.111 to Permit the Establishment of Overstay Charges for Parking at Public Electric Vehicle Charging Stations, and pass to second reading on March 23, 2021. With Mayor Pro Tem Muldoon absent, the motion carried 6-0. 14. Ordinance No. 2021-9: Amending Newport Beach Municipal Code Chapter 5.49 to Remove Fire False Alarms and to Authorize the Police Chief to Investigate Alarm Systems for Permitting [100-20211 Mayor Avery opened the public hearing. Jim Mosher questioned the logic of resetting the number of false alarms to zero at the beginning of each calendar year. Fire Marshal Bass reported that the intent is to change behavior rather than to punish, and indicated the policy aligns with those in police and fire departments throughout the county. Hearing no further testimony, Mayor Avery closed the public hearing. Volume 64 - Page 665 City of Newport Beach Study Session and Regular Meeting March 9, 2021 Motion by Council Member Dixon, seconded by Council Member Blom, 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) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-9, An Ordinance of the City Council of the City of Newport Beach, California, Amending Chapter 5.49 (Burglary -Robbery -Fire Alarm Systems) of the Newport Beach Municipal Code, and pass to second reading on March 23, 2021. With Mayor Pro Tem Muldoon absent, the motion carried 6-0. XIX. CURRENT BUSINESS 15. Coronavirus (COVID-19) Update [100-20211 City Manager Leung and Fire Chief Boyles utilized a presentation to discuss and update Orange County case statistics, the reopening status, State metrics with vaccination targets, Blueprint For a Safer Economy tiers, City sports, vaccine distribution and vaccination data, Fire Department administration of vaccinations, and Fire Department statistics. Council Member O'Neill stated, if 2 million vaccinations occur this week, the County can move into the red tier before March 17, 2021. In response to Council Member Dixon's question, Fire Chief Boyles reported Othena should provide the location, date and time for the second vaccination. XX. MOTION FOR RECONSIDERATION - None In response to Council Member Brenner's question about Mr. Mosher's previous comment, City Attorney Harp reported the appointments to the Water Quality/Coastal Tidelands Committee that occurred at the March 9, 2021 City Council meeting will not need to come back to Councilbecause the minor error in the exhibit to the resolution can be corrected administratively. XM. ADJOURNMENT - Adjourned at 9:48 p.m. in memory of Richard Luehrs 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 March 4, 2021, at 4:00 p.m. Leilani I. Brow City Clerk W u v� B ve y ayor Volume 64 - Page 666