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HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach City Council Meeting November 16, 2021 November 30, 2021 Agenda Item No. 1 In response to Council Member Brenner's question, Deputy Community Development Director Campbell assured Council that any additional comments resulting from the Housing Element Update Advisory Committee meeting can be added to the revised housing plan before submitting to HCD. Mayor Avery acknowledged staff for their knowledge, time, and energy to revise the housing plan. SS3. Fractional Home Ownership Community Development Director Jurjis utilized a presentation to discuss fractional ownership of real estate, companies selling fractional ownership, how it works, operations, community concerns, City regulations, and the Newport Beach Municipal Code (NBMC) table of allowed uses, definitions. In response to Council Member Dixon's question, Communilwevelopment Director Juris noted the definition of conversion and its subjective interpretationW application. Council Member Blom highlighted the percentage of LLC&APIWt ownerships in Newport Beach and discussed the reality of future home own1 rshi pact to the City with the elimination of fractional ownership. 04 In response to Council Member Brenner's questions, Gl*unity Development Director Jurjis confirmed the 4ie4rzones in which fractional ownep and Short -Term Lodging (STL) are allowed and not allowed, explained how time share us is subject to the definition, zoning rules when properties convert to condominiums, and the cap on STL applications. Pacaso's Director of Governme t and Community Relations Ellen Haberle utilized a presentation to discuss co-owner ip history, Pacaso's role, owner agreements, and enforced policies. A 6a In response to Council questions, Haberle provided the definition of a luxury home, stated who holds the title and how the co-owners are listed, and related Pacaso's enforcement procedures for respecting local ordinances; confirmed that Pacaso is employed by the LLC to serve as property and program manager; noted that the company uses an LLC operating agreement; stated that ownership interests are sold in one-eighth increments with a 50% cap, and an average owner group consisting of 6-7 members; stated that while neighbor and owner conflict is a reality, local ordinances can preserve the peace, quiet, safety and comfort of the residents; and explained Pacaso's equitable scheduling calendar tool, the rules for member guests, and occupancy cycles. Community Development Director Jurjis agreed to seek collaboration with fractional home ownership companies, like Pacaso, to establish a mutual understanding of City regulations and company enforcement procedures. Ms. Haberle agreed to collaborate with City staff to identify cities with preventative ordinances. Council Member O'Neill expressed concern about regulation standards for commercial enterprise. Community Development Director Jurjis shared that a threshold provision exists for fractionally owned properties with 11 or more members, which requires filing with the Department of Real Estate and public records. Nancy Scarbrough believed that the rotation frequency of member stays is subjective and questioned how fractional ownership will affect property taxes. Volume 65 - Page 184 City of Newport Beach City Council Meeting November 16, 2021 Russell Dahl expressed concern for Pacaso's minimal data and history, unpredictable member behavior and guest visits, long-term unknown ramifications, and avoidance of the City's short- term occupancy and rental rules. Susan Stoneburner asked Council to consider classifying fractional ownership homes as STLs, described her experience with a Pacaso property, and expressed the opinion that the home is being used as a short-term rental without a short-term rental agreement, business license, or proper City taxation. Cathy Brown shared her dismay about having a Pacaso property in a single-family residential zone. Mike O'Neill shared and praised his relationship and experience as a fractional owner with Pacaso. Richard Manga noted his support and relationship as a fractional owner with Pacaso. Mike Desantis shared his displeasure and experience as a Ya 6ntatperty neighbor, expressed concern that his experiences conflicted with Ms. Haberle'sJon, and noted how the property has impacted the neighborhood. Connie Adnoff requested Council investigate 1al op fd�hen fractional owner members disturb the local community. Chuck Fancherde€�believed that the City shou on uisance issues and not regulate good behavior, predict behavior, or profile guests. David Tanner requested that staff explct onal ownerships as a vehicle for affordable housing units. J Council Member Blom correlated bad behavior sightings at fractionally owned properties with problems exhibited at individually owned dwellings, expressed concern with limiting opportunities and creating ore regulations for property purchases and uses, and encouraged communication amongs hbors. Mayor Pro Tem Muldoon ed the opinion that fractional ownership cannot be eliminated and that it does not viol timeshare ordinances. In response to Mayor Pro Tem Muldoon's questions, City Attorne arp shared conduct and public nuisance regulations and possibly creating a volmlWry centralized complaint hotline as a communication tool with Pacaso and other fractional►„.ership businesses. Community Development Director Jurjis reviewed the Department of Real Estate time share laws and procedures for fractional ownership with 11 or more members, confirmed that Newport Beach regulations would need amending to include a time share cap, and concurred that the current City definition of time share does not fits the Pacaso application. In response to Council Member Dixon's questions, Ms. Haberle compared second homeowner travel habits to short-term renters, discussed policy guidelines for complaints, and agreed to share complaint reports with the City. City Attorney Harp clarified the difference between fractional ownership and short-term rentals. In response to Council Member Duffiehfs question, Community Development Director Jurjis explained that home sale prices are based on supply and demand and the possibility does exist for a private homeowner to overprice an individual home sale with the hope of a fractional owner sale at a higher cost. SS4. Water Conservation Ordinance Update Mayor Avery continued the item to the next City Council meeting Volume 65 - Page 185 City of Newport Beach City Council Meeting November 16, 2021 M111 • Attended the annual Visit Newport Beach (VNB) Marketing Outlook and Tourism Awards, Associated California Cities of Orange County (ACC -OC) Leadership Conference, Speak Up Newport meeting regarding offshore oil drilling, and the Mayor's Prayer Breakfast • Met with Council Member O'Neill, Mayor Avery, and staff regarding the General Plan Update process Council Member O'Neill: • Attended the Distinguished Citizens Program/Newport Beach Foundation, the memorial for Detective Sergeant Randy Parker, thanked the Newport Beach Police Department for their help on Halloween • Announced the Citizens of the Year gala on November 19 Council Member Dixon: • Attended the San Onofre Nuclear Generating Station tour with Council Member Brenner, VNB Marketing Outlook and Tourism Awards reception, solid waste management meetings, ACC -OC Leadership Conference, and Orange County Council of Govern is (OCCOG) meeting • Met with Council Member Brenner and staff to discuss the A oc Residential Care Facilities Committee • ARi�Attended the first City Council Redistricting Comm ttee m ting on November 8 Council Member Blom: • Attended the VNB Marketing Outlook and Tourism Award meeting with the Irvine Terrace Residents Association, and the San Diego crew meet, where th Newport Aquatic Center (NAC), Orange Coast College (OCC), and Newport Sea Base rowing teams competed t Mayor Avery: • Attended the Mayor's Prayer Breakfas6ald the VNB Marketing Outlook and Tourism Awards reception W= AGENDA • Consideration o reNework supporting the Support Action for Spent Fuel Now coalition, whit of stakeholders to make offsite spent fuel storage and/or disposal e Federal level, including for the San Onofre Nuclear Generation Stat io ouncil Member Dixon] The City Council una ously concurred to bring the item back at a future meeting. • Consideration of allocating funding to hire a Government Affairs firm to represent the City of Newport Beach regarding laws, rules and regulations related to residential care facilities [Mayor Pro Tem Muldoon] The City Council unanimously concurred to bring the item back at a future meeting. • Consideration of a resolution expressing support for Initiative 21-0016, which: (1) opposes the legislature of the State of California's adoption of legislation that overrides local zoning and land use authority; and (2) ensures that zoning and land use authority is retained by local governmental entities that represent the communities in which the residents reside, and allows local government to participate in solving affordable housing issues through solutions that effectively address the unique needs and conditions of each local community [Council Member Brenner] The City Council unanimously concurred to bring the item back at a future meeting. Volume 65 - Page 187 City of Newport Beach City Council Meeting November 16, 2021 Hamid Kianipur, applicant, explained that his family has owned and operated the station since 2003, reviewed the station's background, outlined the remodel and changes to operating procedures, parking, Americans with Disabilities Act (ADA) accommodations, landscaping, and feedback from the City, the Police Department, and the community. Scott Peotter, architect and project manager representing the applicant, utilized a presentation to show the existing site and building, the various submittals, proposed site, elevations, perspectives, and lighting. In response to Council questions, Mr. Peotter confirmed that the house under construction behind the station stands five -feet higher than the applicant's structure; and related that the canopy will include the new gas station's logo, incorporate the same wood grain, and attempt to tie together the architecture. He added that the current design plan helps keep light and noise pollution to a minimum. In response to Council questions, Community Development Director Jurjis and Traffic Engineer Brine noted that retail and restaurant operators are permitted uses on the property, the City does not regulate who operates the convenience store, and a condition to add a lighting inspection at the end of construction could be added if desired; explained the review and contamination testing process in the event of a sale or lease turn over; shared the difficulty with mandating colors for a potential operator without City mandated design *ndards; and explained that a traffic study was not conducted for this project because the intersection did not meet municipal code thresholds, redirecting traffic flow at this intersection is not conducive to tr�dfic patterns, and restr ping options. Council Member Blom summarized the effor�plicant to conform to City rules and regulations and reminded Council that alterr1erty uses may not be better. Regarding Community Development lirector Jurjis suggesting that a condition be added for the canopy to match the building design, otter agreed. Mr. Kianipur added that he agreed to starting alcohol sales at a later ho Mayor Avery expressed pleasure in t sign plan. An unidentified speaker requested that Council postpone its vote so the recent plan changes and Police Department reports can be reviewed. Doreen Chandler described daily traffic scenarios for Irvine Terrace residents, expressed concerns with the potential impacts of an additional mini mart, and requested Council postpone its vote so a traffic study can be conducted. Jeff Woodman listed possible impacts to traffic expressed concerns regarding on-site parking, the environment, and police call volume, noted a scale discrepancy regarding the canopy in the presentation, and requested a continuance of the proposal. Debbie Stevens expressed support for the Corona del Mar 76 Service Station project. John Hollern referenced the proposed site map to show a noncompliant parking spot and narrow spacing down the middle alley. Robert Gregory opposed adding a convenience store and detailed traffic issues at the intersection. Dean Chandler summarized the intersection traffic patterns and impacts of adding a convenience store, expressed concern for alcohol sales, future property use, redundant retail options, loitering, congestion, visual aesthetics, and quality of life for Corona del Mar residents. Volume 65 - Page 194 City of Newport Beach City Council Meeting November 16, 2021 Garen Yeg4+enian, owner of Korker Liquor, noted a community petition against the Corona del Mar 76 Service Station proposal, highlighted Korker's hours of operation, and stated his concern for waiving development standards and the potential precedence it could set for other businesses. Nancy Van Otten opposed adding a convenience store to the area and highlighted possible environmental concerns related to the gas tanks during renovation. Rebecca asked Council to consider the quality of life and safety of area neighborhoods, traffic congestion, and increased alcohol sales. Bill Wonderly supported the Corona del Mar 76 Service Station project. Walter Mead questioned upgrading a gas station when current car trends lean toward electric vehicles. Bernie Svalstad supported the Corona del Mar 76 Service Station project, summarized the progression of the project plans, and noted the role of Council. Jasmine Mortazavi supported the Corona del Mar 76 Service Stlition project. Lawrence Sherwin requested a postponed vote, trc Stu alternative property options, and questioned the sensibility of adding a convenience e ohol sales next to another alcohol sales retailer. Will Vogue suggested conducting a traffic stud Matt Larson supported the Corona del Maar'76 Sere Station project. Hearing no further testimony, Mayor Aoe*losed the public hearing. Council Member Blom noted the impact ti�Corona del Mar with the current and renovated status of the station, the applicant's due diligenge to the process, and the role of Council. In response to Council Member Brenner's questions, Community Development Director Jurjis confirmed that there are no known gas tank issues at this time. Traffic Engineer Brine clarified a minimum increase in car trips to trigger a traffic phasing ordinance study and how traffic habit observations can feed adjustments. 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 under Class 1 (Existing Facilities) of the CEQA Guidelines, because it has no potential to have a significant impact on the environment; and b) adopt Resolution No. 2021-117, A Resolution of the City Council of the City of Newport Beach, California, Upholding the Decision of the Planning Commission and Approving Conditional Use Permit No. UP2019-004 and Coastal Development Permit No. CD2019-005, which Supersedes Conditional Use Permit No. UP1580, to Remodel and Expand an Existing Convenience Store Including a Waiver of Some Service Station Development Standards and the Introduction of a Type 20 (Off -Sale Beer and Wine) Alcohol Beverage Control License for the Property Located at 2201 East Coast Highway (PA2019-027), with the addition of the following conditions: limit alcohol sales from 9 a.m. to 9 p.m., strike the condition requiring the Community Development Director and Police Chief to evaluate after one-year for the hour extension, require the owner to apply for the change and go through the regular permit process, support modification for the setback relief, have the owner work with staff to create a less contemporary design, and require that the canopy match the design of the building. City Attorney Harp stated that conditions applicable to all businesses should be addressed separately from this motion. Volume 65 - Page 195