HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach
City Council Meeting
March 8, 2022
March 22, 2022
Agenda Item No. 1
Mayor Pro Tem Blom thanked staff for their work, addressed staffing challenges and project
evolution cycles, found the goals and plans to move the City forward impressive, and
acknowledged notable differences while driving on City streets compared to other cities.
Public Works Director Webb and Deputy Public Works Director Houlihan continued the
presentation to review the five-year look ahead and significant projects.
In response to Council Member Brenner's questions, Public Works Director Webb reported
funding as undetermined for new Balboa Island benches, noted a preventative maintenance
approach, and related expenses connected to slurrying versus repaving streets.
Jim Mosher shared that virtual access is available for the upcoming CCC meeting
(www.coastalca.gov) and reported an out-of-date link to the Facilities Financing Plan (FFP) on
the City's Finance Department webpage.
Laura Curran noted opportunities for public review of theand shared landscaping safety
hazards on Newport Boulevard.
Laura Curran discussed her attendance at a Board of Sup hearing to discuss fentanyl
distribution in Orange County, statistics, dosing, effects on NewpcW Beach Police Department (NBPD)
officers, opportunities to learn about the deadly drug and relatedpisues, distribution channels, issues
with residential facilities for drug treatment, regulation enforcement, and sober living home treatment,
partnerships, and responsible operators. She further noted the consequences for nonassertive
discussions with legislators+w-es and thanked4ada,
d of Supervisors for hosting the hearing.
City Attorney Harp announced that touncil would adjourn to Closed Session to
discuss the item listed in the Closed Sessiread the titles, and indicated he and City
Clerk Brown would be recusing themselves on Item IV.B due to personal financial interests.
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IV. CLOSED SESSION f
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 matter
Agency Designated Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human
Resources Director, and Charles Sakai, Esq., Negotiators.
Employee Organizations: Newport Beach Police Management Association (NBPMA) and Newport
Beach Lifeguard Management Association (NBLMA).
B. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 matter
Agency Designated Representatives: Kevin Muldoon, Mayor, and Noah Blom, Mayor Pro Tem.
Unrepresented Employee: Leilam I. Brown, City Clerk, and Aaron C. Harp, City Attorney.
V. RECESSED - 5:07 p.m.
VI. RECONVENED AT 5:30 P.M. FOR REGULAR MEETING
VII. ROLL CALL
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City of Newport Beach
City Council Meeting
March 8, 2022
In response to Council Member Dixon's questions, Community Development Director Jurjis clarified
the parcel owned by the City and sold to Kobe Bryant, the Master Plan of Streets and Highways for
road access amendments, Pacifica Christian High School's (PCHS) purchase intentions, Surplus
Lands Act for development, and PCHS' parking requirements.
In response to Council Member Brenner's inquiries, Real Property Administrator Whitlinger
utilized a slide to discuss $1 per year or no fee agreement properties, and Community Development
Director Jurjis referenced City Council Policy F-7 pertaining to fair market value, procedures for
waiving Council policies, and State Lands Commission rules.
Council Member O'Neill emphasized that Council will not be waiving City Council Policy F-7 since
findings were made, utilized the 1499 Monrovia Avenue map to address the regional process for
revisions to the Master Plan of Streets and Highways, clarified the lease agreement and access road
use, elaborated on the unique space with no conversion option, and indicated how it is not
comparable to any other location in the City. He further elaborated on alternative uses of the space,
current neighboring tenant uses and structural investments, a�d benefits to the City for continued
use which led him to support a productive use for the space.
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Mayor Pro Tem Blom shared his perspective on identifying productive Ises of City properties that
benefit the community, school district space use and function, and observations during a recent
PCHS visit, and acknowledged the financial invment by PCHS and partnership in long-term
goals. ct
Council Member Brenner expressed the importa f bein equitable and following a consistent
policy.
Council Member Avery summarized traffic patterns at PCHS, questioned lease agreement terms,
noted City services to the parcel, suggested alternative property uses, and expressed support for
PCHS, but rent should be identified by a study.
In response to Mayor Muldoo QCs, City Attorney Harp discussed the revocable license
agreement, the 90 -day ter ce, and City Council's purview to make findings and
determine market uone. ldohighlighted the slide that listed the organizations with
$1 per year or n ee s and Community Development Director Jurjis disclosed PCHS'
agreement to pay $1 per year.
Luis Garcia, PCHS Director of Business and Operations, summarized PCHS' educational dedication
to the community, its nonprofit status, mission and goals, fundraising, tuition, scholarship process,
donor assistance, funding goals, financial assistance, and opportunities to grow value in the
community, and requested an extension of the existing agreement with the opportunity for future
amendments.
Nancy Scarborough noted that there was a business on the $1 per year or no fee agreement list,
discussed PCHS' asset and tuition, and suggested that a fair market price or equitable arrangement
be considered.
Charles Klobe recommended reviewing the current organizations with $1 per year or no fee
agreements, expressed opposition to extending the no fee agreement, requested the City Council
reject the proposal, and supported assessing a property rental fee and keeping road access to
Banning Ranch.
Jim Mosher noted public school availability, requested a list of organizations with fee agreements,
and questioned having a no fee agreement with PCHS.
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City of Newport Beach
City Council Meeting
March 8, 2022
David Bahnsen explained PCHS' fundraising goals and scholarship opportunities and requested
continued use of the no fee agreement originated with Kobe, Inc., recalled the fair market value
process on the 15th Street PCHS property lease, reported approximately $2 million paidby PCHS in
the form of City La*rentt noted PCHS' nonprofit status, donor dependency, monetary property
investments, and operational needs, and questioned fair market value determinationes.
Mayor Muldoon discussed license agreement revocation and PCHS' campus safety by continuing the
no fee agreement, and suggested continuing the license arrangement.
Motion by Mavor Muldoon, seconded by Council Member O'Neill, to a) determine this action
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 Section 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 this action will
not result in a physical change to the environment, directly or indirectly; b) approve a waiver of City
Council Policy F-7 — Income Property based on the findings contained in this staff report, that
conducting an open bid process or changing the licensee would result in excessive vacancy and costs,
and the use of the property provides a unique service to the community and might not otherwise be
provided where an open bid or fair market value of the property be required; and c) authorize the
City Manager and City Clerk to execute Amendment No. One to Revocable License Agreement
Between the City of Newport Beach and PCHS F ties, LLC, Assignee of Kobe Studios, LLC, for
the Use of City Property.
Council Member O'Neill defended the community valuted to the organizations with a $1 per
year or no fee agreement but agreed that con ued e ation should occur, and pointed out the
unique nature of this property.
Mayor Pro Tem Blom acknowledged Fletcher Jones' impact on the City, envisioned a community
that cultivates growth and provides value and betterment, and commended the investment in the
City from organizations with a $1 per year ar no fee agreement.
In response to Council Member Dixon's questions, Real Property Administrator Whithnger
confirmed shared 1jW of the gymnasium for sports activities with public attendance. Council
Member Dixon n City Council Policy F-7 stipulations and expressed her support for the
amendment.
In response to Council Member Brenner's questions, Real Property Administrator Whithnger
clarified the discounted continued use of the gym by PCHS, Community Development Director Jurjis
indicated an amended agreement for the Community Center was already approved by Council and
reviewable in two years upon the agreement termination, City Attorney Harp stated the benefits of
separate agreements to maintain revocable options and ensure City access to the property, and City
Manager Leung emphasized that the Council policy and findings support concerns for equitable
discounting for organizations that provide benefits to the public.
In response to Council Member Avery's inquiry, Community Development Director Jurjis confirmed
that PCHS negotiated with the City for the 4 94* a._ t n i. _ 1499 Monrovia Avenue
property after purchasing it from Kobe Bryant and received a no fee license agreement with a
potential recall by the City to accommodate Banning Ranch. Council Member Avery supported the
amendment and continuing fair and equitable rent on City owned parcels.
In response to Mayor Muldoon's question, Community Development Director Jurjis confirmed that
the Fletcher Jones use is for a right-of-way. Mayor Muldoon concurred with Council Member Avery,
supported nonprofit entities, compared the property to Fletcher Jones' since it is a potential roadway
opportunity, and agreed with having more stringent guidelines and Council's purview to decide the
worthiness of $1 per year or no fee agreements based on public benefit.
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