HomeMy WebLinkAbout01 - MinutesOctober 11, 2022
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Special Meeting
September 27, 2022
I. CALL THE MEETING TO ORDER
II. ROLL CALL — 4:02 p.m.
Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council
Member Will O'Neill
III. CURRENT BUSINESS
1. Resolution No. 2022-61: Initiation of Zoning Code and Local Coastal Program
Amendments Related to Fractional Homeownership (PA2022-0202) [100-20221
Community Development Director Jurjis reviewed the previous direction provided to staff by
Council to initiate a Newport Beach Municipal Code (NBMC) change and moratorium, and
requested further direction from Council.
Council Member O'Neill supported moving forward i�de change initiation and the Planning
Commission preparing the first draft. Mayor Muldoon concurred.
Council Member Dixon suggested that Council give diretrtion to the Planning Commission and
recommended providing direction and a framework for staff.
Council Member Brenner agreed that mor+irection is needed for the Planning Commission, noted
the original municipal cod#xcluded timeshares and fractional ownerships, and suggested the
moratorium begin immediately and sunset lien an ordinance is in place.
Council Member O'Neill thAght the last study session provided a general framework, referenced
the approach ad litigation in St. Helena, and suggested the Planning Commission use it as a
starting point. I I
Mayor Muldoon concurred that Council had given direction previously and the parameters of the
St. Helena lawsuit makes the most sense to use.
Council Member Dixon agreed but added that there are other factors to consider. She announced
that she met with a Pacaso representative and discussed options, noted this is a new industry with
few case studies, and stated it requires a more substantive study.
Council Member Avery agreed with Council Member O'Neill, suggested moving deliberately,
identifying options, and picking a solution that works for the City.
Mayor Muldoon thought that a majority exists to regulate fractional ownerships in residential areas
of the City.
Gabe Dima-Smith, Pacaso Public Affairs Manager, appreciated the thoughtful approach by Council,
stated that Pacaso is not a timeshare business model, co -ownership is common and has been present
for decades, no regulatory framework exists, and expressed interest in meeting with staff to reach a
mutually agreeable policy.
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Gary Cruz shared his wife's five points that addressed timeshare characteristics, suggested creating
a moratorium, and expressed concern for banning fractional ownerships in only R-1 zones since
Newport Island is zoned R-2.
Nancy Scarbrough suggested forming an ad hoc committee to help the Planning Commission work
through the extensive study conducted by staff, agreed with adopting a moratorium and taking a
slower approach, and indicated that there are currently five fractional ownership listings.
Jim Shaheen shared his background and the benefits of co -ownership.
Jim Mosher discussed Ordinance No. 82-14, which addresses timeshares, read the definition from
the NBMC, and questioned enforcement.
City Attorney Harp indicated that the purchase of a residential property by an LLC does not
constitute a timeshare under the current provisions of the NBMC.
Meagan Licata, Pacaso employee, on behalf of the Stein , read their letter of support and
highlighted their co -ownership experience.
Denys Oberman thanked Council for bringing the item forward, agreed with City Attorney Harp,
supported enacting a moratorium, expressed the opinion that fractional ownership intensifies a
neighborhood, noted challenges with setbacks and consequences of establishing co -ownership
properties, discussed fractional ownership and timeshare history, and indicated a need to manage
the concentration.
Mike O'Neill stated that the wrong definition of timeshare is being used and discussed the
differences between fractional ownership and timeshare transactions, the ability to buy up to half
the property for a 180-day use, Pacaso having an interest in property management without a
financial interest in the property, and questioned the parameters of a moratorium.
Carmen Rawson expressed the opinion that the Pacaso business model is a timeshare, defined two
types of timeshares, reviewed the guidelines for co-owner stays, questioned why timesharing is
allowed in residential areas, reviewed the limits and regulations, and indicated the short-term
lodging ordinance does not apply to fractional ownership properties because the owners are not
paying rent or Transient Occupancy Tax (TOT).
Chrissy Bruchey, Pacarpo e 1yee, read a letter from Steve Hayes and his family that supports the
Pacaso model. II.-
Cathy Brown noted that she lives in a residential neighborhood behind a Pacaso property and asked
Council to address owners who stay for short amount of time, and cleaners, friends and family who
come and go.
Samantha Walsh, Pacaso employee, read a letter from property owner Anthony Kumar who shared
his experience as a fractional owner.
Roberta Smith provided a complaint regarding the Plaza del Sur property.
Timothy Ellis, Pacaso Home Estate Manager, read a statement from property owner Sam Papoyan
and provided his own background and best practices.
Steve Rosansky, President and CEO of Newport Beach Chamber of Commerce, noted different
viewpoints on the subject, encouraged Council to be deliberative and engage with Pacaso, and asked
that if the Council adopts a moratorium that it be for a short duration.
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An unidentified speaker noted the City's responsibility to support its investors and longtime
residents, discussed diminution of property value, and a comparison to how Costa Mesa was able to
establish care facility development limits when it was thought too not be possible. Furthermore, he
suggested consulting with attorneys who have handled similar cases with success on an appeal, and
questioned if the NBMC is sufficient.
Purvi Doshi, Pacaso employee, read a statement on behalf of owner Cathy Coste.
Dave Archie, neighbor to a Pacaso property, encouraged an accelerated solution, noted three -to -
seven -day guest rotations over the last year, discussed their behavior, and offered to share
additional experiences.
Charles Klobe noted the number of sold shares in Newport Beach and urged Council to conduct a
study and do what it best for the residents of the City.
Max Johnson stated his opposition to fractional home ownership.
Michael Jacobs discussed the Plaza del Sur property, supported moratorium to conduct a study,
and opposed businesses in residential areas.
Mayor Muldoon noted that sold shares are grandthered in, supported regulations in R-1 and R-2
zones, looked forward to what is brought back toll -Council, expressed support for Council Member
O'Neill's analysis, expressed concern retarding enacting a moratorium, and supported the
emergency passage of regulation of R-1 and R-2�ones.
Motion by Mayor Muldoon, seconded by Council Member O'Neill, to a) determine this action
exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262
(Feasibility and Planning Studies) Xf the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3; and b) adopt Resolution No. 2022-61, A Resolution of the City Council of the City
of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning) and Title
21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code
Related to Fractional Homeownership (PAr 2022-0202).
In response to cil Member Dill's question, Council Member O'Neill clarified that the request
includes movin^ulckly, using existing models and language from St. Helena to encompass what
the City wants, and the Planning Commission has enough information to craft the language to be
sent back to Council. Souncil Member Dixon sought expediency, and in response to her question,
Community DevelopmeNat Director Jurjis indicated that staff will have a study session with the
Planning Commission to discuss the current NBMC, break down the St. Helena code, ask for
feedback from the Planning Commission, draft NBMC amendments, and return to Council with a
written document by the first part of the new year. Council Member Dixon clarified that the City
Council will give the Planning Commission the parameters and framework within the context of the
St. Helena ordinance, agreed to be supportive, and asked if support exists among her colleagues to
have a 60 or 90-day moratorium to give the Planning Commission time to do the work or impose
immediate code changes to control the density.
Mayor Muldoon expressed concern for litigation if the City makes any missteps, suggested a special
meeting of the Planning Commission to address it sooner, and noted a drastic move will weaken the
City's position.
In response to Council Member Brenner's question, Mayor Muldoon clarified his suggestion to move
through more quickly instead of enacting a moratorium. Council Member Brenner noted that she
would support passing this to the Planning Commission with a moratorium in place.
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Council Member O'Neill stated the importance of reviewing Government Code Section 65858, which
is the standard for a moratorium, and indicated it does not apply to this situation,
the City's hands are tied by State law.
At the request of Council Member Brenner, Council Member O'Neill read Government Code Section
65858.
In response to Council Member Dixon's question, City Attorney Harp clarified that all moratoriums
and urgency ordinances have the same basic standard and require an immediate threat to the public
health, safety, and welfare. He also clarified that any non -urgency ordinance takes effect 30 days
after the second reading. Community Development Director Jurjis indicated that a draft ordinance
could return to Council by the first or second Council meeting in November and would take effect
30 days after the second meeting.
In response to Council Member Avery's question regarding the City of Beverly Hill's moratorium,
City Attorney Harp noted that Beverly Hills enacted a mora rium two years ago, they were the
only city in the State to do so, and they were not challenged,
In response to Council Member Brenner's question, Community Development Director Jurjis
relayed that the Planning Commission could hold special meetings but staff will not return to
Council until November at the earliest.
Council Member Dixon questioned why the City cannot enact a moratorium, to which Mayor
Muldoon stated that due process must be followed. Council Member Dixon concluded that Council
agrees about expediting the process, following the due process rules, and moving forward in a
manner that is supported by neighbors and respects property rights.
Motion by Council Member Brenner to establish a moratorium and go forward with the rest of
staffs recommendation. � 10
Council Member O'Neill questioned the findings included in Council Member Brenner's motion and
City Attorney Harp stated that the CiTy-`7`�nnot establish a moratorium at this meeting but could
direct staff to come back with a proposed moratorium.
Alternate motion by Council Member Brenner, seconded by Council Member Dixon, to
a) determine this action exempt from the California Environmental Quality Act (CEQA) pursuant
to Section 15262 (Fea`�ibility and Planning Studies) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3; b) adopt Resolution No. 2022-61, A Resolution of the City Council
of the City of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning)
and Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal
Code Related to Fractional Homeownership (PA2022-0202); and c) direct staff to bring back a
moratorium discussion at the next City Council meeting.
In response to Council Member Dixon's question, Community Development Director Jurjis
confirmed that Beverly Hills is the only City to enact a moratorium and City Attorney Harp noted
that any findings for a moratorium in Newport beach would need to be based upon facts specific to
Newport Beach.
Council Member O'Neill expressed the opinion that staffs time is better spent on the code initiation
instead of trying to identify findings on a moratorium, and opposed the motion in an effort to be sure
the City is moving forward speedily.
In response to Council Member Dixon's inquiry, City Attorney Harp stated that he has not consulted
with an outside attorney regarding enacting a moratorium and agreed with Council Member Dixon
that this may be a prudent course of action if direction is given to go forward with the moratorium.
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Council Member Brenner questioned whether lack of staff time is a problem. Mayor Muldoon
indicated the City Attorney's Office's time is separate from Community Development at this time,
but City Attorney Harp noted that his office works closely with the Community Development
Department in regards to these matters.
With Council Members Brenner and Dixon voting yes, the alternate motion failed 2-5.
The original motion carried unanimously 7-0.
IV. ADJOURNMENT - 5:37 p.m.
The special meeting 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 22, 2022, at 4:00 p.m.
Leilani I. Brown
City Clerk
Kevin Muldoon
Mayor
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October 11, 2022
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Regular Meeting
September 27, 2022
I. ROLL CALL - 5:41 p.m.
Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council
Member Will O'Neill
II. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Shana Conzelman, Friends of Newport Harbor, stated their position for responsible and sustainable
dredging without a Confined Aquatic Disposal (CAD) and expressed concerns for future dredging
prevented by a CAD, taxpayer expense, beach erosion, CAD stability, toxic exposure, dumping
prioritization, and out of water contaminated material locations,A
Susan Lockhart expressed her opinion that the project will not improve the Harbor environment and
that no water quality model was done by the City to collect data and contaminants in the sediment near
homes. I
An unidentified speaker indicated that the preferred method for storing contaminated material is to
remove it from the water and that a CAD is used in commercial ports where alternatives are not
available. She took issue that Newport Beach would be the first city to place a CAD in a recreational
harbor.
Philip Thompson opposed the CAD project, offered an alternative, and relayed the impacts to people.
Deborah Klein expressed concern relative to th pro'tective contaminant barrier provided by the CAD.
Grace Hobbs expressed concern re ardidred in plan, environmental analysis, and effects to
p g g dredging Y
people from toxic materials affecting water quality.
Bill expressed conc�n relative to the time and money invested by the City to clean up a toxic weed in
China Cove and relayed his concern for where the CAD will be placed.
Sandy MacDougall opposed the CAD placement in the Harbor and asked that an additional 90 days be
granted to the California Coastal Commission (CCC) to review the proposal.
An unidentified speaker expressed the opinion that funding would not be lost if the CAD project is not
approved and urged residents to register their opposition on the Friends of Newport Harbor website and
message a City Council representative requesting a 90-day extension to review the proposal.
David Rhodes expressed his belief that Council is solely focused on one solution, has been misled by
skewing of the facts, and hoped that the project is not approved by CCC.
Bill Kenney, Newport Harbor Foundation, shared the Foundation's purpose and composition, thanked
Council and staff for being steadfast in the dredging project, indicated that a completed analysis was
conducted, mentioned the benefits of dredging, noted the safety of materials in question, and supported
the project.
City Attorney Harp announced that the City Council would adjourn to Closed Session to
discuss the item listed on the Closed Session agenda and read the title.
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III. 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, Barbara Salvini, Human
Resources Director, and Charles Sakai, Esq., Negotiators.
Employee Organizations: Newport Beach City Employees Association (NBCEA), and Newport
Beach Professional and Technical Employees Association (NBPTEA).
IV. RECESSED — 6:04 p.m.
V. RECONVENED AT 6:30 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council
Member Will O'Neill 40
VII. CLOSED SESSION REPORT
City Attorney Harp announced that no reportable actions were taken.
VIII. INVOCATION — Council Member Brenner
IX. PLEDGE OF ALLEGIANCE — Mayor Muldoon
X. PRESENTATION
• Friends of the Newport Beach Library Check Presentation
Library Services Director Hartson and the Board of Library Trustees Chair Paul Watkins
introduced the Friends of the Library Bookstore Manager Amy Hunt who presented a check in the
amount of $200,000 to the library, thanked the bookstore volunteers and library staff, and
introduced Friends of the Newport Beach Library Board Member and Marketing Director/Publicity
Coordinator Janet Cal 'ster0F
Council Member Dixon thanked the Friends of the Library staff and Board of Trustees, and reported
that the City has received $1,481,894 from the Library Foundation since 2014 and $2,251,000 from
the Friends of the Library to the City of Newport Beach General Fund.
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member O'Neill:
• Attended the Spyglass Hill picnic, Finance Committee meeting, OASIS Cars & Coffee Event,
Concert on the Green, the Newport Beach Fire and Lifeguard Appreciation Dinner, Associated
California Cities of Orange County (ACC-OC) Board meeting and conference, and Newport Beach
Junior Lifeguard Building Groundbreaking
Council Member Duffield:
• Provided a County of Orange Executive Watershed Committee report
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Council Member Dixon:
• Attended the Aviation Committee meeting, Snowy Plover Management Plan meeting for Peninsula
residents, Spyglass Hill picnic, Newport Beach Fire and Lifeguard Appreciation Dinner, and
Newport Beach Junior Lifeguard Building Groundbreaking
• Announced a Concert at Marina Park and continued contribution opportunities to the Newport
Beach Junior Lifeguard Foundation (nbjgfoundation.org)
Council Member Brenner:
• Attended the final Concert on the Green and Orange County Mosquito and Vector Control District
Board of Trustees meeting
• Announced the Corona del Mar Residents Association (CdMRA) Candidate Forum
Council Member Avery:
• Attended the Newport Beach Fire and Lifeguard Appreciation Dinner and Newport Beach Junior
Lifeguard Building Groundbreaking
Mayor Muldoon:
• Utilized slides to share the Newport Beach Junior Lifeguard Building Groundbreaking, Welcome
to Aquatrak for daily water use tracking, water leaks, and water use alerts, and the General Plan
Advisory Committee application process (newportpeachca.gov/vaca y)
• Announced the Love Newport Beach Volunteer DAy II
XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA (NON -DISCUSSION ITEM)
Consider creating a three -member Ad Hoc Citizens Advisory Committee, consisting of
residents with background in public safety and criminal justice, to address residential
burglary concerns and advise neighborhoods on preventative measures [Mayor
Muldoon] '
Council unanimously concurred to bring matter back at a future meeting.
XIV. PUBLIC COMMEMTS ON CONSENT CALENDAR
WN
Regarding Item 11 (Phase VIII of the Sculpture Exhibition in Civic Center Park) Council Member
O'Neill requested that the Public Benefits Fund be used, rather than the General Fund.
Denys Oberman expressed support for Item 5 and City Attorney Harp clarified that the City's intent is
to return all local authority to the City for regulation of all group home facilities.
Kelly Carlson, President of the Balboa Village Merchant Association, thanked staff and Code
Enforcement for responding to concerns over the summer and for establishing a permanent Code
Enforcement Officer to help protect small businesses, and expressed support for Item 3 (Request to Add
Code Enforcement Officer I Position)
Regarding Item 11, Arlene Greer and Commissioner Vice Chair Maureen Flanagan thanked Council for
supporting and attending the Sculpture Exhibition, concerts, and upcoming art exhibitions.
XV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the September 13, 2022 City Council Meeting [100-20221
Waive reading of subject minutes, approve as amended, and order filed.
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2. Reading of Ordinances
Waive reading in full of all ordinances under consideration and direct the City Clerk to read by title
only.
RESOLUTIONS FOR ADOPTION
3. Resolution No. 2022-62: Request to Add Code Enforcement Officer I Position to the
Community Development Department [100-20221
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. 2022-62, A Resolution of the City Council of the City of Newport Beach,
California, Adding a Code Enforcement Officer Position to the Community Development
Department; and
c) Approve Budget Amendment No. 23-022 transferring $86,016 from the Code Enforcement
Professional Services account to various salary and b:Accounts.
Mayor Muldoon voted "no" to Item 3.
4. Resolution No. 2022-63: Acceptance of Oil Spill Response Equipment Staging Grant
Funding from the California Department of Fish and Wildlife Office of Spill Prevention
and Response [100-2022]
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. 2022-63, A Resolution of the City Council of the City of Newport Beach,
California, Accepting Grant Funds from the California Department of Fish and Wildlife, Office
of Spill Prevention and Response for Oil Spill Response Equipment Staging; and
c) Approve Budget Amendment No. 23-019 recognizing $5,000.00 in grant revenue from the
California Department of Fish and Wildlife (10045451-431455) and appropriating $5,000.00 to
Account No. 10045451-881002.
5. Resolution No. 2022-64: SupporNg Restoring Local Authority in the Regulation of Group
Residential Uses [I00-20221
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. 2022-54, A Resolution of the City Council of the City of Newport Beach,
California, Supporting the Restoration of Local Authority to Regulate Residential Care Facilities
and Calling Upon the State of California to Increase its Oversight and Enforcement of
Residential Care Facilities Until Local Authority is Restored.
CONTRACTS AND AGREEMENTS
6. Fire Station No. 2 Project (Project 15F13) — Notice of Completion for Contract No. 8269-2
[381100-20221
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.
Mayor Muldoon recused himself on Item 6 due to potential business interest conflicts.
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7. Slurry Seal Program (Project No. 22R04) — Notice of Completion for Contract No. 8710-1
[381100-20221
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.
8. Approval of Professional Services Agreement with Griffin Structures for Library Lecture
Hall Construction Management (Project No. 19F11) (C-7444-6) [381100-2022]
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 a Professional Services Agreement (PSA) with Griffin Structures for the Library
Lecture Hall construction management contract for a not -to -exceed amount of $680,000, and
authorize the Mayor and City Clerk to execute the agreem nt.
Mayor Muldoon voted "no" to Item 8.
9. Approval of Amendment No. Three to Agreement for Be ch Container Refuse Collection
Service with Rainbow Disposal Co., Inc. (C-�709) [381100-20221
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(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. Three to Agreement with Republic Services, Inc. for Beach Container
Refuse Collection Service to modify the compensation terms, increase the total not -to -exceed
amount by $1,153,439 for a total not -to -exceed amount of $3,051,063, and extend the term to
February 28, 2026; and —
c) Authorize the Mayor and City Clerk to execute the amendment.
10. School Resource Officer Program Agreement (C-8510-6) [381100-20221
a) Determine that the action is exempf from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2)knd 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.
11. Contract with Arts Orange County to Manage Phase VIII of the Sculpture Exhibition in
Civic Center Park (C-8463-6) [381100-20221
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 contract with Arts Orange County for project management of Phase VIII of the
Sculpture Exhibition in Civic Center Park for a total amount not to exceed $119,000, and
authorize the Mayor and City Clerk to sign the agreement, and amend the funding source.
MISCELLANEOUS
12. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library
and Appropriate Funds to the Library's Fiscal Year 2022-23 Maintenance and Operation
Budget [100-20221
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
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b) Accept a check in the amount of $200,000 from the Friends of the Newport Beach Library and
approve Budget Amendment No. 23-013 to increase expenditures by the same amount in
Division 0106052 (Friends of the Library).
13. Confirmation of Appointments to the Ad Hoc Municipal Code and Council Policy Review
Committee [241100-20221
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly; and
b) Confirm Mayor Kevin Muldoon's appointments of himself, Mayor Pro Tem Noah Blom, and
Council Member Will O'Neill (Chair) to the Ad Hoc Municipal Code and Council Policy Review
Committee.
14. Acceptance of the State of California Office of Traffic Safety Selective Traffic
Enforcement Program Grant PT23055 (C-8201-7) [381100-20221
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 $350,000 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 t award of $350,000 and create
a new appropriation to expend the funds; and
c) Approve Budget Amendment No. 23-01asing NBPD revenue estimates and expenditure
appropriations by $350,000.
Motion by Mayor Pro Tem Blom seconded by Ma or moon, to approve the Consent Calendar;
and noting the recusal by Mayor Muldoon to Item 6, the ' votes by Mayor Muldoon to Items 3 and 8,
and the amendments to Items 1 and 11—)
The motion carried unanimously.
i
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None
XVII. PUBLIC COMMEhJTS ON NON -AGENDA ITEMS — None
it
XVIII. PUBLIC HEARINGS
15. Ordinance Nos. 2022-19 and 2022-20: Tennis Club at Newport Beach Project Amendment
(PA2021-260) (C-5068) [381100-20221
Community Development Director Jurjis and Associate Planner Lee utilized a presentation to
review the project location, land use, previously approved project, proposed amendments, previous
and proposed site plan comparisons, project entitlements, CEQA review, proposed Condition
No. 6, and recommended actions.
In response to Council Member O'Neill's question, Community Development Director Jurjis
confirmed that the applicant submitted an application for tennis courts and the City is not
prohibiting pickleball courts.
Mayor Muldoon opened the public hearing.
Robert O Hill provided the project background and utilized a presentation to review the amended
plans, display renderings, floor plans, photos, and a letter from Kory Kramer of Eagle Four Partners.
He further recommended working together with Eagle Four Partners and provided other potential
partners and tax revenue benefits.
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In response to Council Member Dixon's questions, Mr. O Hill identified a new lap pool on the
rendering, stated the 28 pickleball courts will remain, agreed to comply with Condition No. 6, which
Community Development Director Jurjis agreed the applicant can start right away with a parking
study, and outlined units that will help the City meet affordable housing development goals.
Mayor Pro Tem Blom noted changes in Mr. O Hill's previous affordable housing participation and,
as per Community Development Director Jurjis, the applicant's permit is expired and requires
updates to the plan and plan checks by the Building Department. In response to Mayor Pro Tem
Blom's question, Mr. O Hill stated that it is best for pickleball and the applicant to not include
pickleball in the amendment in order to complete the hotel lease and parking requirements. Mayor
Pro Tem Blom noted that the current pickleball courts exist without a City process, the City will not
take away the existing courts, and encouraged Mr. O Hill to go through the process to make everyone
happy at the same time by adding the pickleball courts to the plan. In response to Mr. O Hill's
question, Community Development Director Jurjis relayed that the applicant's return date to
Council is unknown until after the study is conducted. 14
Council Member Dixon supported a parallel path and in response to her question, Community
Development Director Jurjis stated that the City will of get in the way of the existing pickleball
courts, and Mr. O Hill confirmed that pickleball �tinue indefinitely as codification with the
California Coastal Commission (CCC) and traffic u y take pla14
Brett Feuerstein and Ryan Chase, 50% owners of The Tennis Club at Newport Beach property,
noted an arbitration in progress to determine if Golf Realty Fund has the authority to unilaterally
process the application, opposed the proposed plan, thanked staff for their work, expressed interest
in finding a solution that enables The Tennis Club to grow and thrive, and expressed concern that
there are no pickleball courts in the plan and the proposed lease is for twenty years.
Adk
Sean Abdali, President of Grand Slam Tenni d The Tennis and Pickleball Club operator, stated
the Club is the largest and most prestigio�in America with passionate pickleball members,
promised to one day offer majority gickl�ball, expressed interest in a 72-year lease and new
clubhouse, noted a�petition opposing theconstruction of a hotel and tennis court demolition, and
asked that Council support Plan B. 1
Dalen LawrencApposed the amendment.
Stacy Evans read a stIvIlt from Nick Bollettieri in support of Plan B.
John Rosen opposed the amendment.
Darcy Bouzeos opposed the amendment.
Debbie Schwartz pointed out a discrepancy in the pickleball court plans and requested that Council
deny the amendment.
Michelle Hatch expressed the opinion that Mr. O Hill and Mr. Abdali used deception tactics and
urged Council to oppose Plan B.
Gerald Kelleher relayed instances that have led him to question trust in the operator and owner.
Leo Figueroa supported the amendment and the Club providing both tennis and pickleball.
Rick Tarbell encouraged Council to include 28 pickleball courts as a condition in the amendment,
otherwise he opposed the amendment.
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September 27, 2022
Robin, employee and member of The Tennis Club at Newport Beach, confirmed a 1,300-person
membership and Club intention to offer pickleball.
An unidentified speaker expressed the opinion that non -transparency exists at The Club.
Dawna Baroda Clark expressed an interest in preserving The Tennis Club at Newport Beach and
was curious about alternatives.
Lewis Lanzner noted a discrepancy in the number of pickleball and tennis courts.
Jim Mosher questioned the amount that Council can approve in the General Plan Amendment
without a vote of the public pursuant to the City Charter and suggested providing Mr. O Hill with
a total development limit on the property and allowing him to determine the amount of hotel rooms
he can fit within 40,000 square feet.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
In response to Council Member Dixon's question, Community Development Director Jurjis
confirmed that Council has the authority to vote on this amendment.
Council Member Dixon supported the project anal proposed a motion to approve the General Plan
and Coastal Development Permit amendments and amend the Community Development Plan to
include a condition requiring 28 pickleball courts, of which Mr. O Hill agreed. Community
Development Director Jurjis stated that the study and entitlement processing are for tennis courts
and confirmed pickleball courts cannot be incorporated without adding a second amendment. City
Attorney Harp indicated that Council cannot require Mr. O Hill to oblige without an analysis and a
statement of intent of Council to provide 28 pickleball courts could be included, but it would not be
binding without an analysis. —
Council Member O'Neill noted that all ownerwnust sign off on the plan in order for the map to be
recorded and the applicant can proceed to C C contingent upon approval. In response to his inquiry,
Community Development Director Jumps noted that the applicant would need to repeat the CCC
process if the applicant decides to convert to pickleball courts after the project was approved by CCC
for tennis courts, and noted the challenges related to the plan being a Local Coastal Plan
Amendment. Council Member O'Neill relayed why he previously voted "no" on the amendment for
the development agreement and expressed frustrations about the project.
In response to Council —Member Brenner's question, Community Development Director Jurjis
indicated that Council can deny, continue, or approve the application. Furthermore, he
acknowledged the pending arbitration case and that Mr. O Hill can submit the entitlements for
Council review.
In response to Mayor Muldoon's request, City Attorney Harp explained that the City has determined
that Mr. O Hill has the authority to process the application under the Newport Beach Municipal
Code provisions and the arbitration is separate from the City.
Mayor Muldoon noted that the Newport Beach Tennis Club is thriving under Mr. Abdali's
leadership, pickleball is the fastest growing sport in America and a better profit opportunity than
tennis courts, and the maps are not showing pickleball courts because they need to split the tennis
courts. In response to Mayor Muldoon's question, Mr. O Hill agreed to have 26-28 pickleball courts,
contingent on the traffic study results.
Motion by Mayor Muldoon, seconded by Council Member Dixon, to a) adopt Resolution
No. 2022-65, A Resolution of the City Council of the City of Newport Beach, California, Adopting an
Addendum to Mitigated Negative Declaration No. ND2010-008 for the Tennis Club at Newport Beach
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City of Newport Beach
City Council Meeting
September 27, 2022
Located at 1602 East Coast Highway (PA2021-260); b) adopt Resolution No. 2022-66, A Resolution
of the City Council of the City of Newport Beach, California, Approving a General Plan Amendment,
Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal
Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005-003,
and Amendment to Limited Term Permit No. XP2011-004 for the Tennis Club at Newport Beach
Located at 1602 East Coast Highway (PA2021-260); c) adopt Resolution No. 2022-67, A Resolution
of the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal
Program Amendment to the California Coastal Commission to Amend the Newport Beach Country
Club Planned Community Development Plan (PC-47) for the Tennis Club Located at 1602 East Coast
Highway (PA2021-260); d) waive full reading, direct the City Clerk to read by title only, and
introduce Ordinance No. 2022-19, An Ordinance of the City Council of the City of Newport Beach,
California, Approving an Amendment to the Newport Beach Country Club Planned Community
Development Plan (PC-47) for the Tennis Club at Newport Beach Located at 1602 East Coast
Highway (PA2021-260), and pass on to second reading on October 11, 2022; and e) waive full
reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-20, An
Ordinance of the City Council of the City of Newport Beach, California, Approving the Second
Amendment to the Development Agreement (DA2008-001) for the Tennis Club at Newport Beach
Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on October 11,
2022. A&
Council Member Avery stated that the project is not ready to come ko Council, but he believes it is
a great location, facility, and plan and would be a shame if it cannot 1JEa brought together for everyone
to win.
In response to Council Member Dixon's questions, Community Development Director Jurjis
explained the series of steps to obtain a permit, Mr. O Hill clarified that the new plan documents
will not include pickleball courts because they already exist and will remain, indicated he agrees
with the conditions approved by the Planning Commission and substitute condition suggested by
staff, shared a willingness to start the traffic study immediately to gain official approval, and
clarified the demolition of tennis courts for the development of a hotel. Community Development
Director Jurjis reiterated he application process for pickleball courts and stated that, if Council
approves the item, Mr. O Hill will submit a fully revised application to the City.
Council Member Dixon discussed next steps and acknowledged the existing pickleball courts,
missing traffic study requirement, and stated that this is a fine project. Community Development
Director Jurjis noted the entitlements are for tennis courts until Mr. O Hill submits a revised
application featuring pickleball courts, which the City will then submit to the CCC.
Council Member Brenner expressed the opinion that the applicant made it difficult for Council, the
project is not ready for approval, and expressed a desire for the applicant to make the project
happen.
With Mayor Pro Tem Blom and Council Members Avery, Brenner, Duffield, and O'Neill
voting "no," the motion failed 2-5.
Motion by Council Member O'Neill, seconded by Council Member Duffield, to continue the
item until the meeting after the Planning Commission approves plans that include pickleball courts.
With Mayor Muldoon voting "no," the motion carried 6-1.
16. Call for Review — Denial of Reforestation Request for 938 Sandcastle Drive [100-2022]
Public Works Director Webb and Parks and Trees Superintendent Pekar utilized a presentation to
review the denial, provide background on the initial request, initial inspection findings, staff denial,
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City of Newport Beach
City Council Meeting
September 27, 2022
reforestation process, Parks, Beaches, and Recreation Commission (PB&R) August 2, 2022 meeting
details, and basis for the call for review to Council.
In response to Council Member Avery's questions, Parks and Trees Superintendent Pekar noted the
current tree is 15 years old, a replacement tree would take many years to grow, the new tree would
not reach the same height as the current tree, and urban forest planting adds more trees than losing
trees. Council Member Avery supported removing the tree and expressed concern for the new tree
providing the same benefits to the environment. Parks and Trees Superintendent Pekar reviewed
options to address Council Member Avery's concern for the environment and noted the history of
tree plantings, volunteer events, plantings in the parks, precedent setting concerns, and the
possibility of fitting two trees in the space.
Council Member O'Neill recommended that Council review City Council Policy G-1, understood that
the request was denied since it did not match the policy, relayed past tree removal experiences,
supported the item, and indicated that the G-1 policy would need to be updated to comply with the
situation.
In response to Mayor Pro Tem Blom's question, Parks and Trees Superintendent Pekar stated public
outreach for the item took place with no public comme&t received at PB&R's meeting.
Council Member Dixon noted patch work done by the applicant and a root situation that is impacting
the sidewalk. In response to her questions, Parks hnd Trees Superintendent Pekar relayed that the
existing tree cannot be saved and is not part of the special classification, the new tree is not as large,
no objections were received from the neighbors and similar requests have been received. Council
Member Dixon supported the applicant replacing the tree and concurred with Council Member
O'Neill that the Council policy should be reviewed. Parks and Trees Superintendent Pekar noted
the street tree for the neighborhood is a Magnolia, but it has been changed due to an insect
infestation. 4 '+
In response to Council Member Avery's quest, Parks and Trees Superintendent Pekar confirmed
that the tree is in the public right of wa- pd the City has been caring for it for 15 years. Council
Member Avery expressed concern for the tree not providing the same canopy, loosening the rules,
and the precedents for other tree removal requests. Parks and Trees Superintendent Pekar reviewed
the curb, gutter, and sidewalk project for tree removal in Corona del Mar and noted that the
applicant has offered to pay for the tree replacement. Council Member Avery asked for additional
justification for the removal.
r
Council Member Brenner agreed with Council Member Avery regarding environmental concerns,
noted the pleasing appearance of uniform trees plantings, agreed with Council Member O'Neill to
provide better direction to PB&R related to trees, and expressed support for the homeowner to
remove the tree.
Mayor Muldoon opened the public hearing.
An unidentified speaker thanked Council, noted the droppings and damage from the current tree,
the homeowner's support for reforesting, stated the property is a beautiful home owned by a
thoughtful neighbor, and expressed support for the tree replacement.
Jim Mosher emphasized similar PB&R requests that were denied pursuant to City Council Policy
G-1, cautioned about the perception of favoritism, and suggested clear Council policy direction be
provided to PB&R.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
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City of Newport Beach
City Council Meeting
September 27, 2022
Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) determine
this action is categorically exempt from the California Environmental Quality Act ("CEQA')
pursuant to Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because the activities
are in the classes of projects which have been determined not to have a significant effect on the
environment; b) reverse the decision of the Parks, Beaches & Recreation Commission and approving
the application; and c) direct the Parks, Beaches & Recreation Commission to review the removal
and replacement at owner expense in situations where there is general neighborhood support.
With Council Member Avery voting "no," the motion carried 6-1.
17. Ordinance No. 2022-21: Non -Exclusive Commercial Solid Waste Franchise Agreements
[421100-20221
Public Works Director Webb and Deputy Public Works Director Martin stated that the item before
Council is the approval of three recycling haulers who have met the requirements of the application
process to become nonexclusive commercial franchise haulers and provide construction and
demolition hauling services for multiple projects throughout the City.
Mayor Muldoon opened the public hearing. ng no testimony, he closed the public
hearing. Iff
Motion by Council Member Duffield, secondedy5y Mayor Pro Tern Blom, to a) determine
this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly; and b) waive full reading, direct the City Clerk to
read by title only, introduce Ordinance No. 2022-21, An Ordinance of the City Council of the City of
Newport Beach, California, Grantin Non -Exclusive Franchise Agreements for Commercial Solid
Waste and Divertible Materials Handing Serujces Within the City of Newport Beach, and pass to
second reading on October 11, 2022.
The motion carried unanimously. NNW
18. Community Development Block Grant Program Year 2021-22, Consolidated Annual
Performance and Evaluation Report (C-8209-8) [381100-20221
Community Development Director Jurjis and Real Property Administrator Whitlinger discussed the
Community Development Block Grant (CDBG) program's Consolidated Annual Performance and
Evaluation report that detailed the expended funds and program achievements.
Mayor Muldoon opened the public hearing.
Jim Mosher noted that there was a surplus of grant money and expressed concern relative to the
use for the unspent money.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
In response to Council Member Dixon's question, Real Property Administrator Whitlinger clarified
that the surplus funds are from the BeWell program and will be carried forward into the current
fiscal year, the loan will be repaid after this current year, remaining money can be programmed for
future years, the statutory limit of no more of 15 percent of the grant can be spent on public services,
there are no plans to apply for another loan but can be considered if a project demands it, and the
majority of grant needs come from District 1. Community Development Director Jurjis stated that
banked funds can be applied towards Capital Improvement Projects.
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City of Newport Beach
City Council Meeting
September 27, 2022
Motion by Council Member Avery, seconded by Council Member Dixon , 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 2021-22 CAPER; and c) authorize the City Manager or her designee to submit the Program
Year 2021-22 CAPER to HUD.
The motion carried unanimously.
XIX. MOTION FOR RECONSIDERATION - None
XX. ADJOURNMENT - 9:34 p.m.
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 Chambeb t 100 Civic Center Drive on
September 22, 2022, at 4:00 p.m.
Leilani I. Brown
City Clerk
Kevin Muldoon
Mayor
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