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HomeMy WebLinkAbout01 - Minutes - Amended PagesJune 8, 2021 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Minutes Special Joint Meeting with the Finance Committee May 25, 2021 I. CALL MEETING TO ORDER - 4:00 p.m. II. 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 (arrived at 4:56 p.m.), Council Member Will O'Neill, Finance Committee Member William Collopy, Finance Committee Member John Reed (via Zoom), Finance Committee Member Joseph Stapleton, Finance Committee Member Larry Tucker (via Zoom) III. CURRENT BUSINESS 1. Review of the Proposed Fiscal Year 2021-22 Operating Bu##et [100-20201 Finance Director Catlett utilized a presentation to review guiding principles, key messages, timeline, opportunities for public review, third quarter update recap, tieredbudget balancing framework, three revenue sources: property tax, sales tax, and Transient Occupancy Tax (TOT), General Fund (GF) expenditures, transfers, internal service fund charges, changes in full-time staffing, and proposed additional staff in various City departments, key GF program enhancements, unfunded pension liability (UAL) accelerated PERS payment history and impact of payments, proposed GF surplus allocation, GF sources and uses, and highlighteilw at was not included due to Federal funds. Council Member O'Neill noted the difference betweei where the City is today and where it was last year, appreciated the use of one-time funds on a one-time basis, believed UAL discussions are important, indicated the City's UAL is approximately the same despite the aggressive nature of discretionary pay downs, related t other cities' increasing UALs are reducing their services, and thanked Finance Committee m for their work during an extraordinarily difficult year. Council Member Dixon exp preciation to City Manager Leung and staff during a difficult year and noted the City is do exceptionally well. In response to her questions, Finance Director Catlett indicated the City's 1 % share of the property tax was provided by the City's consultant. City Manager Leung reported new full-time employees will likely be subject to PEPRA, staff is mindful of new State laws pertaining to contract employees, staff submits reimbursement requests for overtime and COVID-related expenditures and is reviewing adjustments to the requirements. Finance Director Catlett added that the City has not received reimbursements from the Federal Emergency Management Agency (FEMA) at the current time. Council Member Dixon congratulated staff for keeping a tight ship and doing the right things. Mayor Pro Tem Muldoon noted that other cities are struggling and thanked staff and Finance Committee members. He expressed the opinion that the future is promising, but the $200,000 for the Boardwalk Ambassador Program is unnecessary. In response to Council Member O'Neill's question, City Manager Leung related that staffing for the Harbor Department is funded from the Tidelands Fund rather than the GF. Mayor Avery indicated that the report reflects that Newport Beach is an extraordinary city and how well the private sector runs their businesses in the City, expressed his satisfaction with staffs good decision-making and the granular review of contract staffing, and stated that the Permit Technician position for the Harbor Department is critical for ensuring boats have insurance. In response to his questions, Finance Director Catlett reviewed the ratio and philosophy of contingency funds and ratios for other cities. Volume 65 - Page 39 City of Newport Beach Special Joint Meeting with the Finance Committee May 25, 2021 Council Member Dixon requested staff add Harbor Department staffing as a footnote to the report. Council Member Brenner congratulated City staff and the Finance Committee for a great job during a challenging year and appreciated the achievements of opening a homeless shelter and balancing the budget with a surplus. In response to Charles Flobe's question, Finance Director Catlett indicated the jurisdiction that receives automobile sales tax depends on the type of sale. Jim Mosher understood that the fraction of property tax that goes to the City is based on ratios ����' that existed whence Proposition 13 passed, the number may be different for each property, and 17% is probably a Citywide average. He noted the City Clerws budget seems to fluctuate by 10% annually, expressed the opinion that the online budget detail book is challenging to use, the Open Budget website needs to be updated with the current budget, and questioned whether the policy for ordering supplies locally should be extended to Professional Services Agreements (PSA). 4 2. Review of Resources and Service Levels to Maintain City B ches [100-2020] City Manager Leung utilized a presentation to discuss beach activi service request statistics. In response to Council Member Dixon's question, City Manager LC1W noted parking lot closures. Community Development Director Jurjis utilized a presentation to discuss code enforcement activity, citations, and staffing options. In response to City Manager Leung queston, C pity Development Director Jurjis indicated that the code enforcement contractor began ork i nuary 2021. In response to Council Members' questions, Community Development Director Jurjis reported approximately ten citations for Short -Term Lodging (STL) violations were issued on Newport Island, the majority of citations were issued for the Peninsula area, citations for work without permits were issued throughout the City, cases are generally located in dense communities, the citation process includes a warning letter except for STL violations, and the majority of code enforcement activity is reactive. He added that the cost for an additional contract employee is $100,000, and the intent is to proactively enforce permitting for commercial picnics and unlicensed vendors. He noted that there are numerous unlicensed vendors selling novelties, beach supplies, and food, the vendors compete with retail establishments, vendors may be stationary in certain areas of the City, two or three street vendors have permits, vendors cannot block the sidewalk and have to provide a 4 -foot clearance, and residents should call code enforcement to report street vendors. Council Member Dixon related that many residents complained about picnic activities bringing alcohol onto beaches and taking business away from local restaurants and businesses. In response to Mayor Avery's questions, Community Development Director Jurjis advised that noise complaints are handled by code enforcement and the Police Department, the normal case load is about 1, 300 cases, and about 40% of citations have been paid. Fire Chief Boyles utilized a presentation to discuss current lifeguard service levels and enhanced lifeguard service options between June 12 and September 6. In response to Council Member Brenner's questions, Chief Boyles described staffing between April and June 12, 2021, stated that staffing depends on the school schedule, staffing for Memorial Day weekend is based on projected weather patterns, lifeguard staffing at Marina Park and the Wedge increases based on population and big wave days, and budget is not a factor in lifeguard staffing. He added that assigning a CERT volunteer to monitor the Newport Island bridge might be a good idea Volume 65 - Page 40 City of Newport Beach Special Joint Meeting with the Finance Committee May 25, 2021 in order to provide education to bridge jumpers and act as a deterrent, citations can be issued for bridge jumping and the potential for injuries exists although there were no injuries in 2020. City Manager Leung indicated staff can look at using CERT volunteers for the upcoming season. Council Member Duffield suggested that staff begin issuing citations for bridge jumping. Mayor Avery concurred with Council Member Duffield's comment and believed monitoring bridge jumpers is a waste of money and staff time. City Attorney Harp indicated bridge jumping is a misdemeanor and bridge jumpers can go to jail. Mayor Avery believed the Lido Bridge is particularly dangerous because of the traffic. Council Member Dixon noted there is signage indicating that bridge jumping is prohibited, and social media seems to drive people to jump. She indicated that she wants to discourage jumping without installing a physical barrier. In response to her questions, City Attorney Harp advised that the fine is a maximum of $1,000, the City Attorney's Office prosecutes the violation and negotiates the fine amount, the fine is typically $100 plus court costs for a total of about $500, and the City Attorney's Office has discretion in prosecuting as a misdemeanor and setting the fine amount. Council Member Dixon agreed with Council Member Duffield's comment. Chief Boyles ded that an incident needs to be witnessed by a full-time officer in order to initiate a citation. Mayor Avery stated the issue is increased by childr�C heering bridge jumping on for hours. ��)) Police Chief Lewis utilized a presentation to discus Vhidwalk Ambassador Program, enhanced service opportunities, and current status. In response to Council Member O'Neill's Chief Lewis reported ambassadors provide education and address quality of life issues, visitors are not necessarily aware of prohibitions, most people comply with verbal warnings, staff hopesviolations decrease as the program continues, the data covered only seven weeks, and the program could be discontinued if it is not effective. Mayor Avery suggested fining the owUys of businesses renting surreys. Chief Lewis noted the program has identi problemat*sinesses. Council Member Blom shared his -observation of an Ambassador interacting with a family in a surrey, related that Newport Beach favors education over citation and the program is working, and appreciated the great work. Council Member Dixon stated the program is the result of trying to figure out how to control the speeding problem, appreciated the gentle touch, understood that residents are pleased to see the Ambassadors, and noted Boardwalk safety is the point of the program. She expressed the opinion that businesses would rather not rent surreys, the Coastal Commission does not allow the City to prohibit surreys in the coastal area, and education is the only path forward right now. Public Works Director Webb utilized a presentation to discuss beach, boardwalk, street and area staffing, cleaning, landscape services, and porter services; volunteer organization cleaning efforts; public sidewalk, plaza, and area pressure washing locations, schedule, and costs; beach cleaning and maintenance constraints; and options for service level enhancements. In response to Council Member Brenner's' questions, Public Works Director Webb indicated the Corona del Mar (CdM) plaza refers to the area around Marguerite Avenue, staff can look into more pickups in the evening, one issue with early morning pickups is complaints about the noise of trucks, staff is cleaning areas around outdoor dining, spot cleaning is also done, CdM is not regularly steam cleaned, steam cleaning includes light posts, bridges, and dog areas, most services are provided by contract resources, Council increased the budget two years ago, cleaning is needed for traffic, Volume 65 - Page 41 City of Newport Beach June 8, 2021 Study Session and Regular Meeting Agenda Item No. 1 May 25, 2021 XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON Council Member Brenner: Submitted an Orange County Mosquito and Vector Control District report for the record regarding Newport Beach Utilized slides to announce the CEO of Mother's Market spoke to the Corona del Mar Residents Association (CdMRA), the Modified Vehicle Street Racing and Take Over Task Force and statistics, a SWAT training in Corona del Mar, and requested residents planning to demolish their homes contact the Police Department about using the homes for training Requested a future agenda item regarding direction to the Parks Beaches and Recreation Commission to agendize an Ocean Boulevard Bluff Walk presentation Council Member O'Neill: • Thanked Recreation and Senior Services staff for opening fields • Attended the Corona del Mar High School theater performance • Hosted a first -grade boy scout troop in the City Council Chambers • Announced a Finance Committee meeting on May 27, 2021 at 3:0et Council Member Dixon: • Utilized slides to share the sound wall replacemAt project inewport and announced a District 1 Virtual Town Hall on June 17, 2021 at 5:00 p.m. • Attended a Zoom meeting with 2nd District Supervisor Katrina Foley regarding airport matters and an Aviation Committee meeting on May 17, 2021 • Thanked the Recreation and Senior Services D I,Public Works Departments, and staff for the Grant Howald Park grand opening Mayor Avery: A - • Utilized slides to show dredging at the Haentrance and the Grant Howald Park grand opening held earlier in the day do • Attended meetings of the Finance Committee, Homeless Task Force, Orange County Sanitation District (OCSD) Board, and administration committee 4W XIII. PUBLIC COMMEN N CONSBNT CALENDAR In response to Council Member Dixon's question regarding Item 7 (Resolution No. 2021-44: Approval of Revised City Council Travel Policy F-8), City Manager Leung clarified that the revision extended the travel policy to commissions. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the May 11, 2021 City Council Regular Meeting [100-2021] 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. ORDINANCES FOR ADOPTION 3. Ordinance No. 2021-10: Amending Portions of Chapter 1.05 of the Newport Beach Municipal Code Relating to Citation Fees and Citation Appeal Period (PA2021-079) [100-2021] Volume 65 - Page 46 City of Newport Beach Study Session and Regular Meeting May 25, 2021 Administrative Manager Miller continued the presentation with the CAD construction process. Public Works Director Webb noted the Stage 13 Project involved digging sand from the ocean floor, moving it to the beach, and not refilling the hole. For the dredging project, the hole will be refilled. In response to Council Member Dixon's question, Public Works Director Webb advised that the hole in the ocean floor may be referred to as a vault. Steve Cappellino, Anchor QEA, reviewed current CAD locations, CADs have been constructed within 200 yards of residences in the northeastern United States, such as New Bedford Harbor, but not on the West Coast, and other facilities are receiving materials with higher -concentration material than proposed for Newport Harbor. Administrative Manager Miller continued the presentation with the Basis of Design Report (BODR) and the CAD construction process. Public Works Director Webb noted staff worked with the community and the Harbor Commission regarding using the CAD for ten years, the community raised concerns, the compromise was two years to obtain permits for residential dredging and use of the CAD for six months, the current RGP-54 permit does not allow CAD disposal, staff will work on that in the next permit, and two years is not a long time fordents to obtain permits and line up a dredging service. Administrative Manager Miller continued the presentation w t012 dredging photo and discussion about community and public outreach. Public �Work or Webb emphasized that outreach was extensive. Administrative Manager Miller concluded the presentatiqjVith the CEQA review, details of identified CEQA mitigation measures, public comment periods for CEQA, next steps, and staff recommendation. I In response to Council Member Duffield'stestion, Mr. Cappellino reported computer modeling using field data is used to predict the plume action under different circumstances, and limitations are placed on disposal events to minimize the potential movement of material from the site. A disadvantage of placing the CAD in the Turning Basin is the depth of the water. In response to Mayor Pro Tem Muldoon's question, staff related that the concentration of dredged material will be the same when it is dredged and when it is placed in the CAD, the material placed in the CAD will not harm a swimmer because of the depth of the dredged material, the CAD site will be blocked to vessels during construction, a catastrophic event would be needed to pick up and disperse material, the EPA was not concerned about the in-place material for swimmers unless there was some type of long-term ingestion of the material, and all biological tests found no toxicity of the material. Mr. Cappellino discussed the EPA's reasons for setting limits for material, and the fact that concentrations iri existing sites are not causing biological responses. He added that a person traveling in the Harbor is safe even if sediment is disturbed. In response to Mayor Avery's questions, Mr. Cappellino agreed that large vessels disturb the sediment, which drifts with the current and settles again in some radius around the area, the City does not perform targeted sampling for resuspension events from ships, a very controlled water quality monitoring program is in effect during construction projects, and if results do not match predictions, the City is required to stop or alter the project. He added that testing is phased and currently underway, and results are submitted to the Water Quality Board. In response to Council Member Dixon's questions, Public Works Director Webb stated the CAD will be returned to essentially its original state, and he has no concerns about living within 25 yards of the CAD. In response to Council Member Duffield's question, Mr. Cappellino reviewed the testing for toxic materials and indicated testing materials in the Harbor did not produce a toxic response, when the EPA revised the limit from 1.0 ppm to 1.5 ppm, the amount of unsuitable material to be dredged decreased from 270,000 cubic yards of material to 100,000 cubic yards. Volume 65 - Page 51 City of Newport Beach Study Session and Regular Meeting May 25, 2021 k%111I Harbor Commissioner Beer related that Mr. Luckey's team anticipates providing him with information to share with the Harbor Commission at its June 2021 meeting, and assured Council that the process will continue diligently. Following discussion, motion by Mayor Pro Tem Muldoon, seconded by Council Member Dixon, to a) adopt Resolution No. 2021-46, AResolution of the City Council of the City of Newport Beach, California, Certifying Environmental Impact Report No. ER2021-001; Adopting the Mitigation, Monitoring and Reporting Program; Making Facts and Findings; and Approving the Construction of a Confined Aquatic Disposal Facility and Dredging Outside the Federal Channels in Lower Newport Harbor; and b) direct the Harbor Commission to continue to explore the privately - funded option or other alternatives within 90 days, and make a recommendation to the City Council regarding the alternative(s). The motion carried unanimously. 17. Ordinance No. 2021-12: Eliminating the Balboa Village Area Benefit District [100-2021] Finance Director Catlett utilized a presentation to provide the background, history of the Balboa Village Area Benefit District (District) and the B&oa Village Advisory Committee (BVAC), past and future uses of District funding, and next steps. r Council Member Dixon shared slides of existing conditions while discussing the importance of public information for businesses to operate, use of Community DfFvelopment Block Grant (CDBG) funding, the importance of maintenance, the language of the resolution regarding maintenance, renaming the District and reserve to the `Beach Area District and Reserve' and expanding the area to Balboa Village, Corona del Mar, Ocean Aven Marine Avenue and the boardwalk on Balboa Island, a special fund for parking revenue, and e direct nexus between use of parking revenue from visitors and reinvestment in immediate ares affected by negative visitor impacts. Council Member O'Neill quoted Ronald Reagan's view on the 94984a, government's view of the economy and noted estric as been dedicated for one area only, the anchor tenant recently left the area, the &L ter maintenance, power washing costs $260,000 per year for the whole city while this area generates over $400,000 per year in restricted funding, this is bad fiscal policy, the parking revenues do not go to the General Fund (GFI, funding is needed for aging infrastructure, and removing this restricted fund forces competition and does not stop enhanced maintenance. W Motion by Council Member O'Neill, seconded by Council Member Duffield, 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. 2021-12, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 12.44.029 (Area Benefit District Reserve) of Chapter 12.44 (Stopping, Standing and Parking Restrictions) of Title 12 (Vehicles and Traffic) of the Newport Beach Municipal Code to Eliminate the Balboa Village Area Benefit District, and pass to second reading on June 8, 2021. Council Member Blom suggested the photos indicate that money has not been spent in the right way, Council's job is not to prop up businesses, funding is intended to make the City better for everyone, residents use parking lots just as visitors do, government cannot help business, business supports the City, people need to desire investing in Balboa Village, and separating funds only separated the ability to spend the funds. Volume 65 - Page 54 City of Newport Beach Study Session and Regular Meeting May 25, 2021 Council Member Brenner related that she is conflicted about the issue, monies were being collected from a specific area, the City was not doing a good job of maintaining the area, perhaps Council should have noticed a long time ago that the funds were not being well spent to enhance the District, and beachfront communities are suffering. Council Member Dixon agreed that Council's job is not to prop up any business but noted the City is responsible for maintaining public space, the City encourages and benefits from visitors, the projects were identified in the Balboa Village Master Plan and executed by the BVAC, the focus is getting Balboa Village, Corona del Mar, and Balboa Island back to Disneyland standards in the next three years, Council needs to identify targeted areas that need improvements, and the sole purpose is to clean up the City. Mayor Avery concurred with all comments and indicated the City's job is providing and maintaining public infrastructure, running a business in Balboa Village is difficult for many reasons, and segregating funds is not the answer to Balboa Village's issues. , Gary Sherwin, President and CEO of Newport Beach and Company, understood that the new Fun Zone owners have pledged to preserve and enhance the Fun Zone and stilted the City's culture has always been about building a cooperative public-private relationship, the City needs to do its part to keep Balboa Village clean, safe, and attractiv o visitors and merchants, and the proposal to expand the area is a good one. In response to Council Member O'Neill's questions concerning whether Visit Newport Beach would contribute anv of the monev that the City provides from its Transient Occupancv Tax to the maintenance efforts, Mr. Sherwin reported that Newport Beach and Company is going to set aside a special marketing fund for Balboa Village, it is their- job to get visitors into the City, and noted that there is a representative present pport the idea of building a better experience, but would not contribute toward physical im rov nts. Kelly Carlson, President of the I7alboa 11kge Merchants Association and resident, commented that her business is a success but everyone seems to agree that the level of service and appearance of Balboa Village needs to be better, Balboa Village is always going to be a commercial district, and without a solution the problem will continue. Jim Mosher concurred with Council Member O'Neill's premise, noted other parkingbenefit districts were repealed when this District was created, suggested Balboa Village is not the oldest part of Newport Beach, and the City does not own the boardwalk in front of the Fun Zone. In response to Council Member Brenner's questions, Council Member O'Neill indicated a strategic plan for maintenance is needed, the end result is based on Council budget decisions for the GF, a broad policy discussion of GF money is not before Council, and every budget decision determines Council's priority. Council Member Dixon stated she was not aware of any part of the City that was not being addressed, maintenance is the City's responsibility, the BVAC was diligent in fulfilling prior Councils' mandate to implement a master plan for Balboa Village, reserve funds are part of the budget, Council has to bring the area forward as a targeted area for a limited time to invest funds that enhance the City, and Council does not recognize that exceptional maintenance is required. Mike Robb indicated great progress has been made in Balboa Village over the last six years with this funding, the concern today is that neglect will return, the area will not get the attention it needs if the funds return to the GF, the City needs to take care of its property, and BVAC members were promised quarterly meetings to discuss maintenance issues, but the meetings have not occurred. He proposed finding a better way to report progress. Volume 65 - Page 55