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HomeMy WebLinkAbout09/14/2021 - Regular MeetingCITY OF NEWPORT BEACH City Council Meeting Minutes Regular Meeting September 14, 2021 I. ROLL CALL - 4:00 p.m. 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 II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Proclamation Acknowledging Constitution Week Mayor Avery read the proclamation and presented it to Ashley Rodi, who thanked the City Council. SS3. Check Presentation from the Friends of the Newport Beach Library Amy Hunt, President of the Friends of the Library, discussed bookstore operations during the pandemic, introduced Friends board members, and presented the City with a check for $200,000. Mayor Avery acknowledged the hard work needed to relocate and operate the bookstore. SS4. Inclusionary Housing Ordinance Overview and Considerations Community Development Director Jurjis and Senior Planner Zdeba utilized a presentation to discuss previous Council activities, what is inclusionary housing, basic ordinance structure, Southern California examples, and the Cities of Encinitas and Beverly Hills inclusionary ordinances. In response to Council Member O'Neill's question, staff reported alternative means to comply with an inclusionary ordinance are available when a project is too small to provide an affordable unit, typically a developer pays an in -lieu fee or rounds a fractional unit to a whole, and there is a threshold at which providing affordable housing is not logical. Senior Planner Zdeba continued the presentation with information regarding the previous ordinance, items for discussion, and State Density Bonus Law (SDBL). In response to Council Members' questions, Community Development Director Jurjis indicated that SDBL allows a developer to increase a 100 -unit housing project with 15% very -low-income housing to 150 units, a simple inclusionary requirement is better for calculating the number of units, the City needs to produce affordable housing to report to the State, if the City does not meet its Regional Housing Needs Assessment (RHNA), it will be forced to rezone more properties, five very -low-income units for a 20% increase may be too low, the City should have a requirement of 10% or more with a minimum number of units to be produced, and an inclusionary ordinance is more likely to be used for smaller projects. He stated that SDBL allows a developer to increase the project density by 20% above the City's maximum density if the project provides 5% very -low-income units, developers will take advantage of the SDBL, increasing density by 50% for 15% very -low-income units is huge for a developer. calculating an inclusionary percentage that will provide units to meet the City's RHNA is not straightforward, developers may want to build 100% affordable or even 40% affordable, and staff can provide an estimate of the number of units certain percentages are likely to produce. He added that this type of incentive will not meet the 4.900 RHNA number, every agency is struggling with this concept, the California Department of Housing and Community Development (HCD) only Volume 65 - Page 127 City of Newport Beach City Council Meeting September 14, 2021 requires justification when the percentage is greater than 20%, the challenge in Newport Beach is the value of real estate, and the City should have some type of inclusionary requirement, but a high percentage is probably not the right one. Council Member Dixon wanted to consider data and different scenarios, stated a small number of developers can tap into external funding sources for affordable housing, noted that Ms. Scarbrough has calculated 24,000 units will provide 4,800 affordable units, and an inclusionary ordinance will not provide a significant number of affordable units. Council Member Blom related that developments need to be located where they are wanted, the State has included incentives in the SDBL, the City should take advantage of the State's incentives, the City can incentivize affordable housing with less policy, in -lieu fees seem like extortion to pay for what the City needs to do, there are not many spaces for large amounts of housing, and there is a fine line between an incentive and a financially infeasible requirement. He preferred the City of Beverly Hills' system because it looks strong. In response to Council Members' questions, Community Development Director Jurjis agreed that a higher inclusionary requirement incentivizes a greater number of market -rate units and provides some affordable units, staff and a consultant will study using in -lieu fees and present information to the Council in about eight months, Proposition 218 does not apply to housing, and staff surveyed agencies' inclusionary requirements. He stated that not all developers will utilize SDBL, projects may comply with an inclusionary ordinance without a substantial increase in units, the RHNA requirement for affordable housing is about 2,400 units, a higher inclusionary requirement will provide more affordable units, there is a limit on the inclusionary percentage, the City will have to use its buffer units if it does not produce enough affordable units, a lower inclusionary percentage means more development will be needed to meet the RHNA numbers, and staff is already planning for more development. He added that, with a 15% inclusionary requirement and use of the SDBL, there will be a number of big projects throughout the City, many factors play into housing developments, and a developer could propose a home with an ADU and a second unit, all at market rate. Senior Planner Zdeba concluded the presentation with possible paths moving forward. In response to Council Member Dixon's questions, Community Development Director Jurjis advised that an ordinance would be better than an interim policy, staff must accept an all market -rate housing project if there is no inclusionary ordinance, Council can direct that an inclusionary ordinance apply to projects of two or more units or that all projects pay an in -lieu fee, accessory dwelling units (ADU) are smaller and tend to be affordable, new housing legislation in Sacramento will probably not cause an onslaught of developers acquiring real property in Newport Beach, the legislation provides an opportunity for developers to subdivide residential properties and build two duplexes once the market normalizes. and about half of Newport Beach's housing stock is original construction. Council Member Brenner expressed the opinion that distinguishing between a homeowner's wishes for his property and a developer's wish to make a profit is important, expressed concern that if SB 9 and SB 10 pass and an inclusionary ordinance applies to seven or more units, a developer could build a ten -unit condo adjacent to single-family homes, and noted that Council needs to consider unintended consequences. Nancy Scarbrough stated that a high inclusionary requirement is important, with a 51% inclusionary requirement the City will need 39,764 housing units, at 15% the need is 24,503 units, at 20% the need is 17,400 units, and a 44%, inclusionary requirement would not increase the 50% density bonus. She suggested that Council debate over an inclusionary requirement. Charles Klobe discussed the 2510 West Coast Highway and Newport Village projects. inclusionary requirements for the Cities of Santa Monica and Pasadena. an inclusionary requirement as the only legal means to compel developers to include more affordable units in projects, support for a 20% inclusionary requirement, and the SDBL. Volume 65 - Page 128 City of Newport Beach City Council Meeting September 14, 2021 Adam Wood, Building Industry Association, noted that the wrong inclusionary requirement will result in no housing production, and emphasized that an inclusionary requirement needs to be workable. Jim Mosher understood that staff is proposing an ordinance for Council to endorse, SB 9 will change the character of R-1 neighborhoods and generate market -rate housing, a developer may choose only one density bonus if a mix of affordable units is required, and the Affordable Housing Task Force has not met in quite a while. In response to Council Member Dixon's question, Community Development Director Jurjis reported that the City of Anaheim adopted an interim ordinance in 2019 and may modify it to comply with RHNA numbers, and Anaheim's Mayor appointed a committee that recommended an inclusionary fee. Council Member Dixon recommended a Mayor -appointed ad hoc committee explore an inclusionary requirement or fee and suggested that Council adopt an interim policy of 10% inclusionary housing. Council Member Blom preferred to wait for HCD's comments on the Draft Housing Element and the City of Anaheim's decision, Council does not need to rush to a decision, opposed a temporary inclusionary policy because it raises issues for current development, and supported staff's recommendation to await HCD's comments and study both the Cities of Anaheim and Beverly Hills' systems. Council Member O'Neill suggested staff provide potential impacts of having 15% and 20% inclusionary requirements on development, noted that developers work the math to fit the size of the lot when utilizing SDBL, stated he could support a 15% inclusionary requirement, and was unsure of the minimum number of units to which an inclusionary requirement would apply. Council Member Brenner expressed concern that developers will hurriedly submit projects if Council does not adopt an interim policy as quickly as possible, supported a 15% or 20% interim policy, viewed the interim period as a way to collect data, and preferred an interim 20% policy while a committee studies the issues. Community Development Director Jurjis noted that Council comments addressed forming an ad hoc committee and establishing an interim policy, staff could present an interim policy while a committee studies an inclusionary requirement, and staff could make recommendations for an ordinance once the committee concludes its work. City Attorney Harp advised that a policy is not an enforceable law. Council Member Dixon remarked that a policy relays the will of the City Council and supported forming an ad hoc committee and developing an interim ordinance. In response to Mayor Avery's question, Community Development Director Jurjis believed the prospect of an interim policy would not cause developers to submit applications. There was a unanimous straw vote to support conducting additional study. Council Member Blom suggested that, after staff provides Council with information, Council may decide whether to form an ad hoc committee if additional information is needed. Council Member Dixon believed an ad hoc committee would have a more robust discussion and analysis. Community Development Director Jurjis related that staff could hire a consultant to conduct concrete analyses and present them at a future study session, at which time Council could decide to form an ad hoc committee or direct staff to prepare an ordinance. Volume 65 - Page 129 City of Newport Beach City Council Meeting September 14, 2021 In response to Mayor Avery's question, City Manager Leung related that an expert analysis would be a good idea, HCD's comments are anticipated in 30 days, and this information would adequately inform Council. Council Member Dixon preferred to proceed with an ad hoc committee in order to obtain information and to move quickly. Council Member Brenner noted that Council Members will continue working on the issue and provide their input, and indicated she wanted to establish an interim policy quickly so that Council does not miss opportunities for affordable units. In response to her question, Community Development Director Jurjis related that staff could draft a document for Council consideration at the second meeting in October. In response to Council Member O'Neill's questions, City Attorney Harp advised that a project does not have to comply with a Council policy but does have to meet all other criteria. Community Development Director Jurjis stated a study would require 60 to 90 days to complete. Council Member O'Neill noted Council consensus for an inclusionary requirement and indicated staff should continue to advocate for affordable housing in projects. III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS Jim Mosher noted that HCD's comments for agencies in the Southern California Association of Governments (SLAG) region are similar, discussed litigation which is the subject of Closed Session Item IV.B., recommended that Council not spend taxpayer funds to support the litigation because the California Supreme Court is unlikely to accept the case and the City of San Diego is asking Council to endorse bad public policy. Nancy Scarbrough discussed the California Community Planning Initiative, which unwinds SB 9, SB 10, and density bonuses, and suggested that Council endorse it. Casey Westerfield referred to the August 26, 2021 incident in Santa Ana Heights, and noted an overconcentration of group homes in the neighborhood, expressed concerns caused by the transient nature of the homes' residents, the need for a coordinated approach to regulations, and a meeting with Supervisor Foley on September 24, 2021. An unidentified speaker addressed the lack of regulations for group homes with six or fewer residents, City of Costa Mesa's ordinance, and additional regulations for group homes. An unidentified speaker related that a developer intends to establish a residential care facility on Vista Baya, the City halted unpermitted work on the property, and residents are concerned for their children's safety. She sought Council's assistance with maintaining the residential character of the neighborhood and provided photos of the neighborhood's July 4th celebration. Janna Hedler shared her experiences living next door to a facility for the elderly and neighbors' concerns regarding the facility's compliance with regulations. John Wong believed the overconcentration of group homes is a serious problem that will get worse if Council does not regulate them. An unidentified speaker stated the problem with group homes are that they are not run well, supervised, or regulated, and if the City will not act, residents should go to the State. An unidentified speaker indicated that neighbors are considering buying guns in response to the recent incident, Council support would be appreciated, and these problems are not wanted. An unidentified speaker asked Council to reconsider allowing the conversion of single-family homes to healthcare facilities, so children can play freely outdoors and to help the community avoid further incidents. Volume 65 - Page 130 City of Newport Beach City Council Meeting September 14, 2021 In response to Mayor Pro Tem Muldoon's question, City Attorney Harp advised that the State of California has removed the City's ability to regulate any licensed group home, the City has to treat every licensed facility the same as a single-family residence, the City of Costa Mesa's ordinance is almost identical to Newport Beach's ordinance, Costa Mesa's distancing requirements apply to the distance of regulated homes from licensed facilities, the City's ordinance is comprehensive, concerns regarding group homes should be addressed to State representatives, and the City has worked for more than a decade to obtain local control. Mayor Pro Tem Muldoon remarked that the political party to which Supervisor Foley belongs to is running the State, releasing criminals, and passing laws. Council Member Brenner assured the public that Council continues to monitor the situation and is looking at every possibility. In response to Council Member Dixon's question, City Attorney Harp related that integral facilities are two facilities that work together as one, and the court issued an injunction against the City to prevent it from enforcing laws related to integral facilities. Council Member O'Neill suggested members of the public contact him to discuss advocacy efforts. City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION — Council Chambers Conference Room A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Grace K. Leung, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director, and Charles Sakai, Esq., Negotiators. Employee Organizations: Association of Newport Beach Ocean Lifeguards (ANBOL), Newport Beach Police Association (NBPA), Newport Beach Professional and Technical Employees Association (NBPTEA), Newport Beach City Employees Association (NBCEA), and Newport Beach Firefighters Association (NBFA). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION — INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter Michael Ramesh Haytasingh u. City of San Diego Court of Appeal, Fourth Appellate District, Division One, Case No. D076228 Superior Court of San Diego County, Case No. 37 -2014 -00082437 -CU -PO -CTL (The City Council will be meeting with legal counsel to discuss the City of San Diego's request for amicus support related to the Court of Appeal's interpretation of the five (5) mile per hour speed limit for vessels set forth in Harbor Code Section 655.2 (a).) V. RECESSED — 5:47 p.m. VI. RECONVENED — 6:34 p.m. 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 Volume 65 - Page 131 City of Newport Beach City Council Meeting September 14, 2021 VIII. CLOSED SESSION REPORT City Attorney Harp announced that, regarding Closed Session Item IV.B., Council unanimously supported a motion made by Council Member O'Neill and seconded by Council Member Blom to provide amicus support to the City of San Diego. IX. INVOCATION — Leslee Allen, First Church of Christ, Scientist X. PLEDGE OF ALLEGIANCE — Council Member Dixon XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Brenner: • Attended the Grant Howald Park Movie Night • Utilized slides to highlight the completion of repairs to the East Jetty in Corona del Mar and announce an e -bike safety campaign, which Police Chief Lewis summarized • Noted recent incidents at Westcliff Plaza, which Police Chief Lewis advised are being addressed • Reported activities of the Orange County Vector and Mosquito Control District • Requested a future item regarding the communitiesforchange.org initiative. City Attorney Harp noted that the City cannot take an advocacy position but can direct the public to materials. Council Member O'Neill: • Announced the San Joaquin Transportation Corridor Authority (TCA) discussed refinancing its debt • Attended the Sherman Gardens Soiree with Council Member Brenner, Fire & Lifeguard Appreciation Dinner, and Ben Did Go 6.0 • Announced the Spyglass Hill picnic on September 18, the OASIS Cars and Coffee on September 19, and Concert in the Park on September 26 Council Member Dixon: • Utilized slides to highlight the Olympian Parade, Peninsula Fire Station beam signing and tour, and the District 1 Town Hall meeting on October 5 • Attended the Orange County Council of Governments (OCCOG) and SCAG Regional Council meetings and the Fire & Lifeguard Appreciation Dinner • Announced that Henry and David Pyle completed the acquisition of the Balboa Fun Zone today (balboafunzone.com) • Announced an Aviation Committee meeting on September 20 Council Member Blom: • Attended a meeting with the Newport Beach Chamber of Commerce Commodores, the District 5 Town Hall, Peninsula Fire Station tour, and the Ben Carlson event Council Member Duffield: • Attended a Water Quality/Coastal Tidelands Committee meeting and announced the Watershed Executive Committee meeting on September 15 • Utilized a slide to announce dredging of the Newport Harbor entrance channel and thanked the U.S. Army Corps of Engineers, Public Works Director Webb, and Public Works Manager Miller Mayor Avery: • Attended the Peninsula Fire Station tour and the Fire & Lifeguard Appreciation Dinner • Utilized slides to announce the American Red Cross' volunteer recruitment and the Coastal Cleanup Day on September 18 Volume 65 - Page 132 City of Newport Beach City Council Meeting September 14, 2021 XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consider a discussion on the growing trend of fractional ownership of residential property, addressing how they may impact residential neighborhoods and compliance with the municipal code [Dixon and Brenner] The City Council unanimously concurred to bring the item back at a future meeting. • Consider a discussion on whether the City should pursue the establishment of one, or several exclusive commercial solid waste collections and recycling franchise areas such as the Corona del Mar Business District, Balboa Island and/or Balboa Village Business District [Brenner] Mayor Avery and Council Members Brenner, Dixon, and Duffield concurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Chase Wickersham, addressing Item 10 (Resolution No. 2021-82: Supporting Gypsum Canyon Veterans' Cemetery), noted that a coalition of veterans and elected officials have been working for several years to obtain a veterans' cemetery, The Irvine Company donated the property, and the City of Anaheim designated the property for a veterans' cemetery. He encouraged Council to approve the resolution. Regarding Item 10, Robert Brower indicated that the State will own and operate the cemetery, and the Department of Veterans Affairs will provide funding. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the August 24, 2021 City Council 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. ORDINANCES FOR INTRODUCTION 3. Ordinance No. 2021-16: Amending the LCP Implementation Plan Related to Residential Design Standards Addressing Third Story Massing (PA2019-070) [100-20211 a) Find this amendment exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment; and b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-16, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code and Adopting Local Coastal Program Amendment No. LC2019-006 Related to Residential Design Standards (PA2019-070), and pass to second reading on September 28, 2021. 4. Ordinance No. 2021-17: Amending the LCP Implementation Plan Related to Setback Maps S -3A and S-313 on Lido Isle (PA2016-066) [100-2021] a) Find this amendment exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 of the CEQA Guidelines. Class 5 (Minor Alterations in Land Use Limitations) because it has no potential to have a significant impact on the environment: and Volume 65 - Page 133 City of Newport Beach City Council Meeting September 14, 2021 b) Waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No. 2021-17, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code and Adopting Local Coastal Program Amendment No. LC2017-004 Related to Certain Front Yard and Side Yard Setbacks on Lido Isle (PA2016-066), and pass to second reading on September 28, 2021. 5. Ordinance No. 2021-18: Amending the LCP Implementation Plan and Coastal Land Use Plan Related to the Amortization of Nonconforming Signs (PA2019-184) [100-20211 a) Find this amendment exempt pursuant to California Environmental Quality Act ("CEQA') Guidelines Section 15061(b)(3), and Section 15265(a)(1), because it has no potential to have a significant effect on the environment and local governments are exempt from the requirements of CEQA in connection with the adoption of a Local Coastal Program; b) Adopt Resolution No. 2021-79, A Resolution of the City Council of the City of Newport Beach, California, Amending Policy No. 4.4.4-4 of the Newport Beach Coastal Land Use Plan Related to the Amortization of Nonconforming Signs (PA2019-184); and c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-18, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to the Amortization of Nonconforming Signs (PA2019-184), and pass to second reading on September 28, 2021. Council Member Duffield recused himself from Item 5 due to business interest conflicts. ORDINANCE FOR ADOPTION 6. Ordinance No. 2021-15: Non -Exclusive Commercial Solid Waste Franchises [42/100-20211 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) Conduct second reading and adopt Ordinance No. 2021-15, An Ordinance of the City Council of the City of Newport Beach, California, Granting the 2020 Non-Exclusiue Franchise Agreement for Commercial Solid Waste and Divertible Materials Handling Services Within the City of Newport Beach to the two so named companies. RESOLUTIONS FOR ADOPTION Resolution No. 2021-74: Approving Revisions to City Council Policy H-1 Recommended by the Harbor Commission [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) Adopt Resolution No. 2021-74, A Resolution of the City Council of the City of Newport Beach, California, Amending and Renaming City Council Policy H-1, "The Harbor Permit Policy". Council Member Duffield recused himself from Item 7 due to business interest conflicts. 8. Resolution No. 2021-80: Authorizing the City Manager to Apply for the PLHA Grant and Adopting the PLHA Plan for the Permanent Local Housing Allocation Program [100-20211 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2021-80, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the City Manager to Apply for the PLHA Grant and Adopting the Permanent Local Housing Allocation Program; and Volume 65 - Page 134 City of Newport Beach City Council Meeting September 14, 2021 c) Authorize the City Manager to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments as required by the State of California. 9. Resolution No. 2021-81: Creating a Management Fellow Position [100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2021-81, A Resolution of the City Council of the City of Newport Beach, California, Creating a Management Fellow Position and Establishing the Position Classification and Salary Rate. Mayor Pro Tem Muldoon voted "no" on Item 9. 10. Resolution No. 2021-82; Supporting Gypsum Canyon Veterans' Cemetery [100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2021-82, A Resolution of the City Council of the City of Newport Beach, California, Supporting Gypsum Canyon Veterans' Cemetery. 11. Removed from the Consent Calendar CONTRACTS AND AGREEMENTS 12. Concrete Replacement Program - Notice of Completion for Contract No. 7892-1 (Project No. 21R06) [381100-2021] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 13. Grant Howald Park Rehabilitation - Notice of Completion for Contract No. 7476-2 (19P11) [38/100-2021] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. Council Member Brenner recused herself from Item 13 due to property interest conflicts. Mayor Pro Tem Muldoon recused himself from Item 13 due to potential business interest conflicts. 14. Balboa Pier and Channel Place Park Restrooms Rehabilitation Project - Award of Contract No. 8700-1 [381100-2021] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 -Class 1(a) and (d) alterations involving partitions, plumbing and conveyances; restoration of deteriorated or damaged facilities of the CEQA Guidelines, because this project results in no expansion of an existing use; b) Approve the project plans and specifications; c) Award Contract No. 8700-1 to Allinone Construction, Inc. for the total bid price of $135,910, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency amount of $20,400 (approximately 15 percent) to cover the cost of unforeseen work not included in the original contract. Volume 65 - Page 135 City of Newport Beach City Council Meeting September 14, 2021 15. Civic Center Chiller Maintenance and Repair — Amendment No. 1 to Maintenance and Repair agreement with Envise Inc. (C-8674-1) [381100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. One to Maintenance and Repair Agreement with Envise Inc. (C-8674- 1) to add technical support of the HVAC systems to the scope of work and increase the NTE by $117,189 for a total NTE amount of $267,189; and c) Authorize the Mayor and City Clerk to execute the amendment. 16. Removed from the Consent Calendar 17. Acceptance of the State of California Office of Traffic Safety Selective Traffic Enforcement Program Grant PT22042 (C-8201-6) [381100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize the City Council to accept a $270,000 Selective Traffic Enforcement Program (STEP) award granted to the NBPD by the OTS per City Council Policies F-3 and F-25. To comply with City Council Policy F-3, the City Council must formally accept the award of $270,000 and create a new appropriation to expend the funds; and c) Approve Budget Amendment No. 22-008 increasing NBPD revenue estimates and expenditure appropriations by $270,000. 18. Joint Agreement for the 800 MHz Countywide Coordinated Communications System (C -2755-A) [381100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve a new Joint Agreement for the Operation, Maintenance and Financial Management of the Orange County 800 Megahertz Countywide Coordinated Communications System (CCCS), and authorize the Mayor and City Clerk to execute the Agreement. Mayor Pro Tem Muldoon recused himself from Item 18 due to potential business interest conflicts. 19. School Resource Officer Program Agreement (C-8510-5) [38/100-2021] 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 the agreement between the City of Newport Beach and NMUSD to participate in the School Resource Officer Program, and authorize the Mayor to execute the Agreement on behalf of the City of Newport Beach. MISCELLANEOUS 20. Planning Commission Agenda for the September 9, 2021 Meeting [100-2021] Receive and file. 21. City Hall and Limited Off -Site Facilities Holiday Closure from Friday, December 24, 2021 through Sunday, January 2, 2022 [100-2021] 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 closing City Hall and providing limited services at off-site facilities from Friday, December 24, 2021 through Sunday, January 2, 2022. All facilities would reopen on Monday, January 3, 2022. Volume 65 - Page 136 City of Newport Beach City Council Meeting September 14, 2021 22. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library and Appropriate Funds to the Library's Fiscal Year 2021-22 Maintenance and Operation Budget [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) Accept a check in the amount of $200,000 from the Friends of the Newport Beach Library and approve Budget Amendment No. 22-004 to increase expenditures by the same amount in Division 0106052 (Friends of the Library). 23. Budget Amendment to Accept a Check from the California State Library and Appropriate Funds to the Library's Fiscal Year 2021-22 Maintenance and Operation Budget [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) Accept a check in the amount of $12,000 from the California State Library and approve Budget Amendment No. 22-006 to increase expenditures by the same amount in Division 0106053 (Designated Gifts). Motion by Mayor Pro Tem Muldoon, seconded by Council Member O'Neill, to approve the Consent Calendar, except the items removed (Items 11 and 16); and noting the "no" vote by Mayor Pro Tem Muldoon to Item 9, the recusals by Council Member Duffield to Items 5 and 7, the recusal by Council Member Brenner to Item 13, the recusals by Mayor Pro Tem Muldoon to Items 13 and 18, the ordinance correction to Item 4, and the amendments to Item 1. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 11. Resolution No. 2021-83: Ford Road Overnight Parking Restrictions [100-2021] In response to Council Member Brenner's question, Public Works Director Webb reported overnight parking is available on most City streets, some streets have restrictions, all residential streets are swept, and at Council's direction streets with heavy traffic and debris are posted with no parking signage. Further, Council enacted a 72 -hour parking ordinance, the Police Department enforces the ordinance, certain streets tend to collect cars due to an association's parking restrictions or a work environment, and residents should contact the Police Department about parked vehicles. Rick Tilley read Gina Miller's statement regarding relocation of no -parking signs behind 1706 Port Sheffield Place, construction vehicles parked long-term on Ford Road, and opposition to recreational vehicles and sprinter vans parked long term on Ford Road. She requested that the no -parking signs be returned and the City prohibit long-term parking on Ford Road. An unidentified speaker questioned the designation of on -street parking for overnight parking of vehicles, expressed concerns that the area will appear to be a construction site and that recreational vehicles (RV) have parked on the street for months, and requested a prohibition of overnight parking on both sides of the block. In response to Council Member O'Neill's questions, Traffic Engineer Brine advised that two-thirds of the north side of Ford Road restricts overnight parking, one-third is designated for RV parking, the construction vehicles are part of a long-term project in the Port Streets neighborhood, the project should be complete in October 2021, currently cars can park overnight along both sides of the street, and there have not been any restrictions on overnight parking along the north side of the street. Volume 65 - Page 137 City of Newport Beach City Council Meeting September 14, 2021 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; and b) adopt Resolution No. 2021-83, AResolution of the City Council of the City of Newport Beach, California, Prohibiting Overnight Parking on Segments of Ford Road between Newport Hills Drive West and the West End of Ford Road. The motion carried unanimously. 16. Approval of Grant Agreement with Trellis International (C-8769-1) [38/100-20211 Public Works Director Webb and Public Works Finance/Administrative Manager Schweitzer utilized a presentation to discuss current volunteer cleanup efforts, the Community Volunteer Cleanup Program, Trellis International Community Impact Team (CIT), the proposed grant agreement, a volunteer project in Big Canyon Nature Park, and project photos. Terry Moore, Trellis International, advised that Trellis has operated several programs in the City of Costa Mesa for a considerable period of time, the CIT is composed of homeless and housing - insecure individuals who work on projects, funding provides gift cards for CIT members, CIT members learn life and employment skills, four CIT members have been identified for full-time employment, and the program will benefit individuals and the City. Public Works Director Webb indicated that the program is a great way to re -introduce homeless individuals to the workforce, staff will have help cleaning the City, and CIT members will learn job skills. Jim Mosher hoped Council will support the program and grant agreement, suggested the descriptions of agenda items be improved, and supported compensation for CIT members. In response to Council Member Brenner's question, Mr. Moore reported that Trellis received a donation of a high-powered pressure washer and volunteers have registered to learn how to use the washer. Council Member Brenner noted that businesses and residents can request the services of CIT members. Mr. Moore added that the team has many skills, most team members are homeless situationally, many of the sponsors are restaurants, and Trellis' goal is to foster community and volunteerism. Motion by Council Member Brenner, 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; and b) authorize the Public Works Director and City Clerk to execute a grant agreement with Trellis International that provides City funding in the amount of $30,000 covering a one-year period. The motion carried unanimously. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Steve Schwartz noted the City's inability to regulate group homes, and inquired whether the City has enacted the same regulations as the City of Costa Mesa. City Attorney Harp reiterated the similarity between Newport Beach's and Costa Mesa's ordinances and the fact that neither regulates licensed facilities. Todd McFarland stated that he and his neighbors do not want a sober living facility in their neighborhood and expressed the opinion that these facilities can cause problems in the neighborhood. He asked Council to enact and enforce an ordinance like Costa Mesa's and prevent the developer on Vista Baya from implementing a sober living facility. Volume 65 - Page 138 City of Newport Beach City Council Meeting September 14, 2021 An unidentified speaker shared his observations of residents from the facility located near him and expressed concern for the safety of his family following the recent incident. He requested Council assistance with increased lighting and police patrols. An unidentified speaker discussed the health impacts of radiation generated by fiber optic cables and believed Council needs to do something about the cables. Mayor Pro Tem Muldoon left the dais during these discussions due to potential business interest conflicts. In response to an unidentified speaker's questions, City Attorney Harp advised that the City of Costa Mesa does not regulate licensed facilities, there is some question as to whether one of the facilities is licensed, and the court ruled that Costa Mesa's ordinance is valid. In response to Council Member Dixon's questions, City Attorney Harp indicated that anyone can report a perceived violation of the Municipal Code or State law to the Police Department, the Police Department responds to all complaints, people in recovery are a protected class, people can smoke on their private property, and the State will not reveal information about an active investigation to the City. In response to Council Member Brenner's request, City Attorney Harp emphasized that residents need to work with their State representatives to return local control. Mayor Avery stated that he understands residents' frustration and indicated that Council would take action if it was allowed to, the Police Department responds to complaints, and staff will follow up regarding unlicensed facilities. XVIII. PUBLIC HEARINGS 24. Community Development Block Grant Program Year 2020-21, Consolidated Annual Performance and Evaluation Report (C-8209-7) [381100-20211 Motion by Mayor Pro Tem Muldoon, seconded by Council Member Blom, to a) find this activity exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; b) approve the Program Year 2020-21 CAPER; and c) authorize the City Manager or her designee to submit the Program Year 2020-21 CAPER to HUD. Mayor Avery opened the public hearing. Jim Mosher requested that staff clarify whether small business grant programs will be retooled because funding was not expended and whether the funding will be lost or reprogrammed. Hearing no further testimony, Mayor Avery closed the public hearing. The motion carried unanimously. 25. Resolution No. 2021-84: An Additional Extension of Emergency Temporary Use Permits (PA2020-069) [100-20211 Council Member Blom recused himself due to business interest conflicts. Mayor Avery opened the public hearing. Volume 65 - Page 139 City of Newport Beach City Council Meeting September 14, 2021 Jim Mosher noted that Council previously extended emergency temporary use permits (ETUP) to September 8, 2021, those permits have expired, and Council cannot resurrect expired permits. He questioned the intent of the agenda item. Jeff Shields, representing Jill Markowicz, agreed that ETUPs have lapsed and indicated that there is no need for emergency extensions because indoor dining has returned. He expressed the opinion that an ETUP is a gift from the City, neighbors bear the burden of outdoor dining, two restaurants have received a total of 16 administrative citations or notices of violation, and 23 complaints about the two restaurants have been made since June 8, 2021. He suggested amending the resolution to apply to permitholders that have not received notices of violation or administrative citations. Hearing no further testimony, Mayor Avery closed the public hearing. In response to Council Member Dixon's questions, Community Development Director Jurjis reported noise complaints have been made about six restaurants, typically staff works with restaurants to comply with requirements, three businesses received citations and subsequently resolved its issues, staff has revoked ETUPs for two restaurants, the ETUPs were restored during the appeal process, and the two restaurants are now in compliance with requirements. He indicated that an appeal is filed with the City Manager, a hearing is held, and the applicant and staff present their evidence. He stated that one restaurant became a new establishment, and the other changed its menu, Code Enforcement Officers must witness a violation, a video of a violation is not sufficient, and staff has issued several citations to one business and counseled the other several times. He confirmed that Ms. Markowicz has complained about drug use in parking lots, but that is a matter for the Police Department. He explained that an ETUP allows a restaurant to expand table service to the public sidewalk or metered parking spaces, some restaurants have requested an extension because business is slowing with the end of the summer season, and financial information is not part of the ETUP process. He noted that the two restaurants are required to close outdoor service at 10 p.m., and staff does not monitor restaurants but responds to complaints. Council Member Dixon suggested amending the resolution to state that a code violation or citation results in immediate ETUP revocation, require compliance with hours of operation for outdoor service, and require maintenance of the public right-of-way if it is being used for outdoor dining. In response to Council Member Brenner's questions, Community Development Director Jurjis advised that a restaurant may submit an application for permanent outdoor dining, the Planning Commission reviews applications that require a parking waiver, hours of operation are set on a case- by-case basis, and staff amended a number of permits to extend outdoor service from 9 p.m. to 10 p.m. Senior Planner Nova related that no permits allow outdoor service after 10 p.m., about one- third of the permits allow outdoor service until 10 p.m., and the vast majority of permits close outdoor service at 9 p.m. Community Development Director Jurjis noted that staff addressed many complaints by speaking with the business owner, restaurants are required to maintain a minimum 4 -foot clearance on sidewalks and provide wheelchair access to the front door, code enforcement addresses accessibility complaints, and the phone number for code enforcement is 949-644-3215. Council Member Brenner stated many people do not want to eat inside restaurants due to the resurgence of COVID-19 cases, and supported staffs review or revocation of permits if there are code enforcement issues or complaints. In response to Council Member Dixon's questions, City Attorney Harp advised that due process is necessary for permit revocation and is built into the process, and Council may add a condition of approval requiring maintenance or cleanliness of the public right-of-way. Community Development Director Jurjis clarified that ETUPs require cleanliness as a condition, and staff can send permitholders a reminder of the requirement. In response to Council Member Brenner's question, Community Development Director Jurjis indicated staff can reduce the hours for outdoor service if there are complaints. Volume 65 - Page 140 City of Newport Beach City Council Meeting September 14, 2021 Motion by Mayor Pro Tem Muldoon, seconded by Council Member O'Neill, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines under Class 1 (Existing Facilities), because this project has no potential to have a significant effect on the environment; and b) adopt Resolution No. 2021-84, A Resolution of the City Council of the City of Newport Beach, California, Authorizing an Additional Extension of Emergency Temporary Use Permits Issued to Commercial and Institutional Uses to Operate on Private Property, Parking Lots, Sidewalks, and Public Property and Temporarily Waiving Council Policy L-21 (PA2020-069). Council Member O'Neill noted that the two restaurants that received citations are not using public property, Ms. Markowicz lodged a long list of complaints prior to the pandemic, a policy discussion should not include neighbor -specific disputes, people want to feel safe by dining outdoors, tying a permit or hours of operation to a complaint is not appropriate, there are good reasons for Council's discussion, and Council should not handle individual complaints. Council Member Dixon trusted staff to handle complaints appropriately and to differentiate between a code violation and a complaint, and expressed the opinion that maintenance should apply to restaurants using public space, and emphasized that Council actions have impact on people's quality of life. Council Member Brenner reiterated that staff acts based on citations, not complaints. With Council Member Blom recusing himself, the motion carried 6-0. XIX. CURRENT BUSINESS 26. Resolution No. 2021-85: Lido Isle Community Association Request for Waiver of City Council Policy L-6 and Associated Encroachment Permit Fees (Encroachment Permit No. N2021-0425) [100-20211 Public Works Director Webb recommended revising recommendation e) to allow Council Members Dixon and Blom to split the encroachment permit fee. Sandi Warneke, Lido Isle Community Association (LICA), related the Board of Directors' desire to contribute to the holiday beauty of the City and described the decorations and their placement on the bridge. In response to Mayor Avery's question, Shelly O'Sullivan indicated costs will be covered in LICA's operating budget. 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; b) waive City Council Policy L-6, Encroachments in the Public Rights -of -Way, to authorize that the City Council rather than the Planning Commission be designated to grant or deny the requested waiver of City Council Policy L-6; c) waive City Council Policy L-6, Encroachments in Public Rights -of -Way, to allow installation of lighted garland and wreaths on each side of the Lido Isle bridge (with power provided from a City outlet), contingent upon all conditions of the Encroachment Permit process being met; d) adopt Resolution No. 2021-85, AResolution of the City Council of the City of Newport Beach, California, Waiving City Council Policy L-6 (Encroachments in Public Rights -of -Way) and Approving Encroachment Permit No. N2021-0425 to Install Seasonal Lighted Garland and Wreaths on the Lido Isle Bridge; and e) accept Council Member Diane Dixon's and Council Member Noah Blom's payments of $2,087.50 each from their City Council discretionary funds and/or personal funds to cover the applicable encroachment permit fee of $4,175.00. The motion carried unanimously. Volume 65 - Page 141 City of Newport Beach City Council Meeting September 14, 2021 XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 8:57 p.m. in memory of Harry S. Rinker, George Engelke, and Bonnie Jinkens 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 September 9, 2021 at 4:00 p.m. Leilani I. Brown City Clerk Volume 65 - Page 142