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HomeMy WebLinkAbout01 - MinutesFebruary 14, 2023 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Study Session and Regular Meeting January 24, 2023 I. ROLL CALL — 4:00 p.m. Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council Member Erik Weigand II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Inclusionary Housing Ordinance Community Development Director Jurjis, Principal P1annA VIurillo, and Kathy Head, President of Keyser Marston Associates, reported on the State mandates for the construction and development of affordable housing, required Inclusionary Housing Ordinance for affordable housing minimums, and voluntary density bonus provision; and utilized a presentation to discuss inclusionary housing, provide a background, the Regional Housing Needs Allocation (RHNA) fulfillment tool, density bonus, the ICity's previous Inclusionary Housing ordinance, financial evaluation parameters(www.newportbeachca.gov/inclusionary), pro forma evaluation tests, supportable requirements for rental and ownership projects, examples within Southern California, and a summary for a possible ordinance for the City. Mayor Pro Tem O'Neill questioned whether a study exists that demonstrates whether Inclusionary Housing Ordinances lead to more housing production and noted research by Fellow Conner Harris that finds the opposite occurs within California communities, provided an example of in -lieu fees, expressed concern fc r the study dates and increased construction from State regulations, and noted the opportunity to study ordinances from other cities. In response to Mayor Pro Tem O'Neill's question, Principal Planner Murillo and Ms. Head clarified the calculation process for determining the per market rate. Mayor Pro Tem O'Neill expressed concern regarding project plans and preferred to continue gathering information from other cities. Through the example of in -lieu fees at Newport Center, Principal Planner Murillo clarified the recommendation to take the lowest fee and apply it across the board. In response to Couwmember Avery's question, Ms. Head discussed an informal study she conducted of four California cities with inclusionary housing that showed no discernable pattern, and the key to a successful Inclusionary Housing Ordinance is to moderate and balance the requirement. Council Member Avery noted the importance of staying in touch with the development industry, getting feedback about what is doable, an awareness of the risk involved in development, and land value challenges. In response to Council Member Weigand's question, Principal Planner Murillo clarified that the use of an Inclusionary Housing Ordinance is at the discretion of Council, 13 Orange County cities have completed their RHNA, and highlighted the State's focus. Council Member Weigand expressed the opinion that more expert feedback should be collected and a second Council study session should take place. Council Member Grant concurred with Council Member Weigand's comments, expressed disappointment for the lack of funding to meet the RHNA numbers and, in response to her question, Principal Planner Murillo noted that standards and guidelines for the use of Affordable Housing Funds will be included in the draft Inclusionary Housing Ordinance and noted how in -lieu fees have been used in the past. Volume 65 - Page 471 City of Newport Beach City Council Meeting January 24, 2023 Council Member Kleiman discussed the importance of the by -right density bonus laws to increase low-income housing. In response to Council Member Weigand's questions, Ms. Head noted the legislature allowed inclusion of rentals beginning in 2017 and that the Inclusionary Housing Ordinance can include properties for rent and for sale. Mayor Blom discussed the City's geographic challenges, believed the City can use its inventiveness to create profitable venue opportunities, expressed interest in discussing new ideas, noted success with density bonuses in the airport area, and would like to wait and see. Jim Mosher expressed the opinion that a clearer agenda would have given the new Council Members a chance to review this topic in advance, expressed confusion regarding the terminology of the in -lieu threshold and staffs proposal, expressed concern relative to the by -right approach for 50 units or more, and inquired whether an estimate exists of the total number of units the City is expected to build over the ext eight years to meet the RHNA requirements and how the proposed ordinance will affec number. Adam Wood, Building Industry Association, reminded Council that other development impact fees will increase the total cost of and burden on development, impacts on interest rates, and noted the industry is facing hardship. He discussed the Santa case study and expressed the opinion that more studies would be beneficial. _ C Larry Tucker expressed the opinion that Council should gather information from the development community and stated that density bonuihas been effective for generating units throughout the City. r Nancy Scarbrough discussed development scenarios using 5% and 15% inclusionary housing, noted the complexity of this topic, and supported taking more time to work it through. Mayor Blom gaine nsensus from Council to ruminate on the item and return to staff with guidance. III. PUBLIC COMME Jim Mosher thanked the City Attorney for adding information to the agenda regarding Closed Session Item IV.C, and suggested '�future agenda item to clarify and review the role of Hearing Officers. Ida Wolff provided a handout and requested that the Ben Carlson statue be removed. City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items listed on the Closed Session agenda and read the titles, and reported that the City Manager, City Attorney, and City Clerk will not be participating in Closed Session Item IV.B.2 due to potential impact on their finances. IV. CLOSED SESSION - After Study Session - Council Chambers Conference Room A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: The American Legion Newport Harbor Post No. 291, located at 215 15th Street, Newport Beach, California, 92663. City Negotiators: Seimone Jurjis, Community Development Director and Lauren Wooding Whitlinger, Real Property Administrator. Volume 65 - Page 472 City of Newport Beach City Council Meeting January 24, 2023 Negotiating Parties: Evin D. Planto. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 2 matters 1. Agency Designated Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human Resources Director, and Charles Sakai, Esq. Employee Organizations and Unrepresented Employees: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach Employee League (NBEL); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach City Employees Association (NBCEA); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Part Time Employees Association of Newport Beach (PTEANB); Newport Beach Professional and Technical Employee Association (N TEA), and unrepresented employees not in positions designated as Key and Management. 2. Agency Designated Representatives: Noah Blom, Mayor, and William O'Neill, Mayor Pro Tem. Unrepresented Employees: Grace Leung, � City Manager, Vron C. Harp, City Attorney, Leilani Brown, City Clerk, and unrepresented employees in pc1sitions designated as Key and Management. C. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION — ANTICIPATED LITIGATION (Government Code § 54956.9(d) (1) and (d) (4)): 2 matters SoCal Recovery, LLC, a California Limited Liability Company et al. v. City of Costa Mesa United States District Court, Central District of California, Case No. 8:18-cv-01304-JVS-PJW Ninth Circuit Court of Appeals, Case No. 20-55820 Raw Recovery, LLC, v. a California Limited Liability Company v. City of Costa Mesa United States District Court, Central District of California, Case No. 8:18-cv-01080-JVS-PJW Ninth Circuit Court of Appeals, Case -No. 20-55870 (The reason for holding a closed session in regard to these matters is for the purpose of conferring with and/or receiving advicq from the City's legal counsel and to receive direction from the City Council regarding the possible filing and/or participation in an amicus brief.) V. RECESSED — 5:14 p.m. VI. RECONVENED AT 6:40 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council Member Erik Weigand VIII. CLOSED SESSION REPORT Regarding Closed Session IV.C, City Attorney Harp reported that the City Council authorized the City Attorney to file and/or participate in the amicus brief litigation; and the motion was made by Mayor Pro Tem O'Neill, seconded by Mayor Blom, and unanimously approved by Council. IX. INVOCATION — Dr. Jim Turrell, Center for Spiritual Living Newport Mesa, Costa Mesa Volume 65 - Page 473 City of Newport Beach City Council Meeting January 24, 2023 X. PLEDGE OF ALLEGIANCE - Council Member Grant XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Kleiman: • Attended the Association of California Cities - Orange County (ACC-OC) Newly Elected Officials Training and Orientation and a Corona del Mar High School Speech and Debate Team program with Council Member Stapleton Council Member Stapleton: • Attended the ACC-OC Newly Elected Officials Training and Orientation, the Boat Parade Awards Dinner, and a Corona del Mar High School Speech and Debate Team program • Announced the Water Quality/Coastal Tidelands Committee tting Council Member Grant: • Attended the ACC-OC Newly Elected Officials Training and Orientation and the League of California Cities New Mayors and Council Members Academy Council Member Weigand: 10 • Attended the Community Alliance for Bike Safety (CABS) meeting, the ACC-OC Newly Elected Officials Training and Orientation, and the Newport Beach Chamber of Commerce ribbon cutting for Calaveras Mexican Restaurant Mayor Pro Tem O'Neill: • Attended the Transportation Corridor Agencies (TCA) Board of Directors meeting where he was reappointed as Chair of the San Joaquin Hills TCA Board of Directors • Announced that the Friends of the Newport Beach Library had a successful book sale • Hosted a Girl Scout troep tour of City Hall and spoke with kindergarten classes at Newport Christian School • Announced the Mayor's Dinner on %F%ruary 9, 2023 Mayor Blom: • Attended the United States Conference of Mayors in Washington, D.C. XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Consider adopting a resolution modifying City Council Policy A-1 (City Council) to require that "Matters Which a Council Member has Asked to be Placed on a Future Agenda" be primarily focused on issues that directly impact the finances, property, authority, policies, or interest of the City of Newport Beach and/or finances, property, or rights of the residents of the City of Newport Beach [Council Member O'Neill] The City Council unanimously concurred to bring the matter back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher discussed and summarized Item 14 (Status on Planning Commission's Efforts Related to Fractional Homeownership), expressed the opinion that, in Item 11.3 (Planning Commission Agenda for the January 19, 2023 meeting), the Planning Commission granted a variance and building height exceptions and set findings aside for the applicant's offer to donate money to a City art fund, and requested that Council review the matter. Volume 65 - Page 474 City of Newport Beach City Council Meeting January 24, 2023 XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 10, 2023 City Council Meeting [100-20231 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. RESOLUTIONS FOR ADOPTION 3. Resolution No. 2023-6: Supporting Efforts to Eliminate the Threat of Fentanyl to the Newport Beach Community [100-20231 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. 2023-6, A Resolution of the City Council of the City of Newport Beach, California, Supporting Efforts to Eliminate the Threat of Fentanyl to the Newport Beach Community. 4 4. Resolution No. 2023-7: Big Canyon Habitat Restoration Project - Phase 3: Adoption of License Agreement and Design Plan (C-9135-1) [100-20231 a) Find this Project exempt from the California Environmental Quality Act ("CEQA") pursuant to California Public Resources Code Section 21080.56; and b) Adopt Resolution No. 2023-7, A Resolution of therCity Council of the City of Newport Beach, California, Approving the Big Canyon Habitat Restoration Project Phase 3, Approving a License Agreement and Memorandum of Understanding with the California Department of Fish and Wildlife, and Authorizing Submittal of an Application to the California Coastal Commission (PA2022-034). CONTRACTS AND AGREEMENTS 5. Newport Beach Mariners Library, Corona del Mar Lifeguard Substation, and Ben Carlson Lifeguard Headquarters Heating, Ventilation, and Air Conditioning Replacement Project - Award of Contract No. 8760-1 (22F02) [381100-20231 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1 Section 15301(d) (maintenance of existing public facilities and mechanical equipment involving no expansion of existing use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 8760-1 to Western Allied Corporation for the bid price of $427,497 for the Newport Beach Mariners Library, CdM Lifeguard Substation, and Ben Carlson Lifeguard Headquarters HVAC Replacement Project, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $43,000 (approximately 10 percent of total bid) to cover the cost of unforeseen work not included in the original contract. 6. Goldenrod Pedestrian Bridge Improvements Project - Award of Contract No. 8871-1 (23R12) [381100-20231 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1 Section 15301(d) (maintenance of existing public facilities involving no expansion of existing use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; Volume 65 - Page 475 City of Newport Beach City Council Meeting January 24, 2023 b) Approve the project plans and specifications; c) Award Contract No. 8871-1 to Diamond Construction and Design for the bid price of $158,223 for the Goldenrod Pedestrian Bridge Improvements Project, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $23,000 (approximately 15 percent of total bid) to cover the cost of unforeseen work not included in the original contract. 7. Approval of On -Call Professional Services Agreements for Project Management Services [381100-2023] 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 On -Call Professional Services Agreements with Ardurra Group, Inc. (C-9136-1), DMC Engineering (C-9136-2), and Z&K Consultants, Inc. (C-9136-3) for professional project management services, with each agreement being for a term of three years and a total not -to -exceed amount of $200,000, and authorize the Mayor and City Clerk to execute the agreements. � 8. Award of On -Call Plumbing Maintenance and Repair Services Agreements with Pacific Plumbing of Southern California, Verne's Plumbing, Inc., and ACCO Engineered Systems [381100-20231 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 On -Call Maintenance and Repair Service Agreements with Verne's Plumbing Inc. (C-7140-3), Pacific Plumbing of Santa Ana (dba Pacific Plumbing of Southern California) (C-8516-2), and ACCO Engineered Systems Inc. (C-9138-1), with each agreement being for a term of three years and total not -to -exceed amount of $200,000 per agreement, and authorize the Mayor and City Clerk to execute the agreements. 9. Amendment No. 8 to--CAD/RMS Software Maintenance Agreement with Superion, LLC (C-5505) [381100-20231 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 Amendment No. 8 to the Software Maintenance Agreement with Superion, LLC of Lake Mary, Florid4, for or not -to -exceed cost of $1,424,012.47 over ten years, and authorize the Mayor and City Clerk to execute the Amendment. 10. Maintenance/Repair Services Agreement with C3 Office Solutions LLC dba C3 Tech for Copier Maintenance and Repair Services (C-9137-1) [381100-20231 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 the Maintenance/Repair Services Agreement with C3 Office Solutions LLC dba C3 Tech for copier maintenance services for a five-year term, ending January 25, 2028, and a total not -to -exceed amount of $260,443.60, and authorize the Mayor and City Clerk to execute the agreement. MISCELLANEOUS 11. Planning Commission Agenda for the January 19, 2023 meeting [100-2023] Receive and file. Volume 65 - Page 476 City of Newport Beach City Council Meeting January 24, 2023 12. Budget Amendment to Accept a Check from the California State Library for Literacy Services (CLLS) and Appropriate Funds to the Library's FY 2022-23 Budget [100-2023] 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 $43,022 from the California State Library for Literacy Services (CLLS) and approve Budget Amendment No. 23-045 to increase expenditures by the same amount in the Literacy accounts. 13. Grants and Donations Report for the Quarter Ending December 31, 2022 [I00-2023] 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) Receive and file. 14. Status on Planning Commission's Efforts Related to Fractional Homeownership (PA2022-0202) [100-2023] Receive and file. Motion by Mayor Pro Tem O'Neill, seconded by Council Member Stapleton, to approve the Consent Calendar; and noting the amendments to Item 1. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR lione XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS I Joe Ferrino believed documents were missing related to the 2224 Marine Avenue development and expressed concern relative to thp, approval. Cathy Gilbert infor?ica Council that the St. -Andrews Presbyterian Church prayer group if praying for them. IV Joseph Kogon and Pen u i requested lights to be added to the Bonita Canyon Sports Park pickleball courts. Dennis McGavack discussefflffe growing popularity of pickleball and asked for lights to be added at the Bonita Canyon Sports Park pickleball courts. Jackson Creamer relayed the enjoyment he experiences from playing pickleball and asked Council to add lights to the Bonita Canyon Sports Park pickleball courts. George Egawa complimented Jackson for his presentation and discussed the passion for the sport by the pickleball community in the area. In response to Mayor Pro Tem O'Neill's question, the Mr. Ogawa relayed that he spoke with the Recreation and Senior Services Department, but Mayor Pro Tem O'Neill suggested he speak directly with Recreation and Senior Services Director Levin. XVIII. PUBLIC HEARINGS 15. Ordinance No. 2023-1 and Resolution Nos. 2023-4 and 2023-5: General Plan Amendment to Increase the Development Limit for Bay Island [100-2023] Volume 65 - Page 477 City of Newport Beach City Council Meeting January 24, 2023 Community Development Director Jurjis and Senior Planner Crager noted having presented this item at the January 10, 2023 City Council meeting but are returning for another public hearing due to a public noticing error. Mayor Blom opened the public hearing. Coralee Newman, Government Solutions, representing the applicant, asked that the comments from the January 10, 2023 City Council meeting be included in the record for this meeting. Jim Mosher expressed concern relative to the land use entitlement, whether the Levine Act applies, the original intention of 24 or 25 unit counts, and a floor area limit correction. City Attorney Harp stated that no conflict with the Levine Act exists. Hearing no further testimony, Mayor Blom closed the public hearing. Motion by Council Member Avery, seconded by Council Member Stapleton, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 - Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) adopt Resolution No. 2023-4, A Resolution of the City Council of the City of Newport Beach, California, Approving General Plan Amendment No. GP2022-001 toi Change the Development Limit Specified for Bay Island from 23 Dwelling Units to 25 Maximum Dwelling Units (PA2022-087); c) adopt Resolution No. 2023-5, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2022-003 to Change the Development Limit Specified for Bay Island from 23 Dwelling Units to 25 Maximum Dwelling Units (PA2022-087); and d) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2023-1, An Ordinance of the City Council of the City of Newport Beach, California, Approving Zoning Code Amendment No. CA2022-005 to Change the Development Limit Specified for Bay Island from 23 Dwelling Units to 25 Maximum Dwelling Units (PA2022-087), and pass to second reading on January 24, 202,7 9 The motion carriigd unanimously. 16.Ordinance Nfilirp*1emen 023-2: Coe Amendment Updating Accessory Dwelling Unit Regulations to until Policy K-4 and to Comply with State Law (PA2021-113) [100-20231 Community Developector Jurjis and Principal Planner Murillo offered to answer questions and provide a presentation at the request of Council. Mayor Blom opened the public hearing. Jim Mosher requested the City not rewrite State laws and include in the ordinance that the City is complying with State law with modifications, and expressed the opinion that the height limit change to 20 feet should not be approved. Hearing no further testimony, Mayor Blom closed the public hearing. Council Member Kleiman thanked Principal Planner Murillo for his work, noted her time spent on this matter while on the Planning Commission, agreed with Mr. Mosher's objection to the increased height limit, and suggested a more restrictive standard. Principal Planner Murillo utilized a slide to review the major changes in State Law Standards, intention behind the recommendation by staff, and a building height code draft consistent with the limits of State law that could be used. In reply to Mayor Pro Tem O'Neill's question of the location of the building height code, Principal Planner Murillo referenced Page 16-18 of the staff report. Volume 65 - Page 478 City of Newport Beach City Council Meeting January 24, 2023 In response to Council Member Weigand's question, Principal Planner Murillo utilized a slide to show the City's major transit stops and High Quality Transit Corridors (HQTC), and clarified that staff recommends the code be implemented on the greyed -out areas. Council Member Weigand supported Council Member Kleiman's suggestions. Motion by Council Member Kleiman, seconded by Mayor Pro Tem O'Neill, to a) find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA; b) waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No. 2023-2, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Code Amendment No. CA2021-005 Amending Section 20.48.200 (Accessory Dwelling Units) of the Newport Beach Municipal Code to Implement Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and New State Law Requirements Related to Accessory Dwelling Units (PA2021-113), and pass to second reading on February 14, 2023; and c) adopt Resolution No. 2023-8, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2021-003 to the California Coastal Commission to Amend Section 21.48.200 (Accessory Dwelling Units) of the Newport Beach Municipal Code to Implement Coun Policy K-4 (Reducing the Barriers to the Creation of Housing) and New State Law Requ' ments Related to Accessory Dwelling Units (PA2019-248). ' The motion carried unanimously. XIX. MOTION FOR RECONSIDERATION — No XX. ADJOURNMENT — 7:24 p.m. The agenda was posted on the City's website and on the City located in the entrance of the City Council Chambers a Leilani I. Brown City Clerk t Volume 65 - Page 479 CITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 28, 2023 I. Call the Meeting to Order — 9:00 a.m. Roll Call Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council Member Erik Weigand Invocation — Mayor Pro Tem O'Neill Pledge of Allegiance — Council Member Stapleton II. Public Comments on Non -Agenda Items Jim Mosher noted that Council has not provided any direction, presentation handouts are not available, and there is no call -in option for public comment included on the agenda. Dennis Bress thanked City Manager Leung for the weekly newsletter and asked Council to consider an artificial intelligence tool for searchable meeting recordings. IV Lee Pearl provided a handout of the Balboa Island's wish list. III. Update on Financial Status a t Develo ment Financial Status Finance Director Al -Imam utilized a presentation to provide a Fiscal Year (FY) 2021-22 General Fund budget surplus recap, highlight the Dove Street property purchase, discuss FY 2022-23 General Fund revenue, expenditure, and projected surplus, discuss the preliminary revenue outlook for FY 2023-24, and review the top three revenue source projections for FY 2023-24: property tax, sales tax, and Transient Occupancy Tax 1TOT). ,1W Regarding the $10 million surplus, Mayor Pro Tem O'Neill clarified that $6.7 million will probably be allocated to purchase the land for the new Police Department and $3 million will be used to meet reserve targets. City Manager Leung confirmed that the first $10 million surplus is spoken for and will likely grow further to go towards long term liabilities and enhancement projects. In response to Council Member Stapleton's questions, City Manager Leung clarified that $3 million reserve funds is an estimate and Finance Director Al -Imam confirmed a 25% contingency of General Fund operating expenditures and discretionary payments to Ca1PERS, and noted that next year's budget is not set yet. Mayor Pro Tem O'Neill noted that the reserve policies will be reviewed, the City maintains a conservative three-year General Fund reserve for operating expenses, the City needed to dip slightly into the reserve during the pandemic, highlighted reasons for backing out discretionary amounts on top of the unfunded pension liability payments, and noted the 25% savings into reserves. Volume 65 - Page 480 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Budget Development City Manager Leung and Finance Director Al -Imam utilized a presentation to discuss the budget process, timeline, public review of the budget, and the City's pension paydown strategy, roll -forward of valuations to June 30, 2022, staff pension funding recommendation, inflationary environment, recruitment and retention challenges, and staff retention and managing workload demands. Mayor Pro Tem O'Neill highlighted the public's ability to review the budget, announced there will be an overview of revenue projections at the next Finance Committee meeting, noted the complexity of the City's budget, discussed the City's budget resiliency, and thanked all those participating in the budget process. Jim Mosher expressed the opinion that it would be helpful for the public to have the presentations posted in advance of the meeting, expressed surprise with the sales tax projection, questioned the employee contract adjustments, and discussed the Library Services Manager position. Dennis Bress expressed confusion relative to the unfunded pension liability amount and payback period, noted grant opportunities and use of the Coronavirus Aid, Relief, and Economic Security (CARES) Act money, encouraged the active pursuit of grant funding, and advocated to have Supervisor Katrina Foley's office assist with grant opportunities. Chuck Fancher expressed gratitude for the presentation and well-ruloity and recommended that the City have long-term capital infrastructure planning. Mayor Pro Tem O'Neill discussed the Facilities Financing P1 FFP) and how funds are used. Mayor Blom relayed that staff actively searches for available funding, clarified that the sales tax projections are based on lower sales and lVher prices across the sector, and noted the City maintains a conservative budget approach. A& 0 Council Member Avery noted the potMial�astructure costs involved with drainage and pumps in the Harbor, beach flooding, increased weather intensity, and the need to protect homes and businesses. Mayor Pro Tem O'Neill concurred with ouncil Member Avery and suggested taking back more control of the Harbor from the County. IV. Continuing Initiatives General Plan Update Community Development Director Jurjis utilized a presentation to review the General Plan Update committee structure, Land Use Element schedule, and other related matters being worked on that currently do not have a deadline. In response to Mayor Pro Tem O'Neill's questions, Community Development Director Jurjis confirmed that a Greenlight vote is triggered by the number of housing units and explained the City's approach to simplifying the Environmental Impact Report (EIR) by having housing development overlay commercial square footage recognized in the General Plan. Homelessness Assistant City Manager Finnigan and Homeless Coordinator Basmaciyan utilized a presentation to discuss homeless strategies, review the City's response, the City's contracted services (Be Well OC Mobile Crisis Unit, City Net, and Costa Mesa Bridge Shelter), Countywide coordination, State and Federal programs, outreach statistics for 2022, and permanent supportive housing efforts. Volume 65 - Page 481 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 City Manager Leung discussed the amount of work being done, the need to do more, the complexity of the issue, short and long-term solutions, enforcement, additional shelter beds, permanent supportive housing, transportation sites, and continued focus on improving. Mayor Blom noted the serious and difficult nature of the problem, and pointed out that Newport Beach has done more than probably any city in the country. Council Member Grant noted the amount of work and resources that the City has invested and the great strides being made, commended the balance between investment and outcome, the use of community - wide resources, and expressed interest in becoming more involved. In response to Council Member Weigand's questions, Assistant City Manager Finnigan and Homeless Coordinator Basmaciyan clarified that the Peninsula Enforcement Team is a group of Police Officers, reviewed the service hours for Be Well OC Mobile Crisis Unit, and noted that there is no count for the number of homeless sleeping in vehicles. Council Member Stapleton shared the compassion from the community for people experiencing homelessness, commended staff for their work, encouraged further effort, and noted success stories, but expressed concern for the bottle neck for permanent housing solutions, transportation center enforcement action, and vehicles parked on the westside of Newport each. He requested that staff continue to focus on the westside and expressed interest in being par the leadership on the dais to continue a focused effort. In response to Council Member Grant's question, City Manager Leung relayed that there has been an extensive search for permanent supportive housing. Community Development Director Jurjis indicated that the City is working with affordable housing developers, offers and Letters of Intent (LOI) have been issued, and noted challenges relative to the high cost for land in the City. He proposed partnering with adjoining cities to find more affordable larkd. Council Member Kleiman commended staff forWeir work, expressed interest in how Council can support staff's efforts, a4 that staff consider the County's role, and noted this is a priority for her. Mayor Pro Tem O'Neill acknowledged the work done by the City but stated there is still a long way to go, expressed excitement for ideas from the new Council Members, noted that the City's programming prevented a lawsuit against the ity, recognized the strides in recent years, and noted his desire for continued improvement. iiK Council Member Avery expW�sed optimism regarding the interest and fresh perspective of the new Council Members' on this subject, noted letters received from the community, and hoped that everyone understands that the problem must be managed over time. Mayor Blom appreciated a fresh look at the issue, believed the subject will be included in the Capital Improvement Program (CIP), noted the need for community support, and provided positive feedback from Balboa Island residents regarding the work being done by Trellis. John Wayne Airport Assistant City Manager Finnigan utilized a presentation to review the 1985 Settlement Agreement, consultant support, and Aviation Committee key priorities for 2023. Mayor Blom relayed the purpose and function of the Aviation Committee and noted the enforcement of City priorities through the Settlement Agreement and continued advocacy for the City's interests. Council Member Grant expressed support for and acknowledged Sue Dvorak, a City resident, for her representation on the Orange County Airport Commission. Volume 65 - Page 482 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Mayor Blom recognized a more robust interest from the County with Sue Dvorak's involvement and encouraged community members to contact the County while the City narrows its focus and keeps a liaison relationship with Ms. Dvorak. In response to Council Member Weigand's question, Assistant City Manager Finnigan and City Attorney Harp confirmed that environmental justice related to airport noise and emissions has not been a leading effort at the Federal level and can be addressed in a future conversation with the Federal Aviation Administration (FAA). Council Member Grant expressed optimism regarding the new Airport Director Charlene Reynolds. City's Legislative Platform Assistant City Manager Finnigan utilized a presentation to discuss the legislative platform, advocacy, update, and lobbyists. Council Member Weigand requested public safety, wildfire tion, human trafficking, sentence enhancements on fentanyl, and e-bike regulations be added. Mayor Pro Tem O'Neill suggested determining parameters for conversations between Council Members and advocacy consultants to ensure clear direction by, Council 4 10 Council Member Kleiman supported an emphasis on public safety, residential care reform, the Visa Waiver Program, and funding for homelessness. In response to Council Member Weigand's question, City Manager Leung noted that the City applies for grants across departments and through lobbyists, but will look further into ways to identify funding opportunities. Assistant City Manager Finnigan indicated that the Fire Department contracts with a grant writer. 0 Dennis Bress recognized the_work of past and present Councils, suggested the City work with the County regarding the airport, noted aircraft- ight departure corridor, times, noise reduction departure parameters, support from Supervisor Foley and Sue Dvorak, the Fly Friendly program to monitor and analyze jet departures, lowering the noise limits in the Settlement Agreement, and congratulated the homelessness team for their work. Dennis Baker inquired about a plan to address hygiene for the homeless and discussed airport emissions. Nancy Scarbrough discussed the new Housing Trust consisting of developers and Still Protecting Our Newport (SPON), final documentation for the Housing Trust, fundraising, grant applications at the County, State, and Federal levels to be used for purchasing property or providing low interest property loans for permanent supportive housing and affordable housing, collaboration with the City, and stated the first grant is underway. She reminded everyone that there are three parties that sign the Settlement Agreement and discussed additional research by SPON using a new attorney. Charles Klobe, SPON President, shared the Newport Beach Housing Trust website (www.newportbeachhousingtrust.org) and noted that Townsend Public Affairs can be contracted to obtain State grants. Jim Mosher expressed concern regarding direction provided to the Aviation Committee without a discussion within the Committee or with Council, acknowledged the regular updating of the homeless response statistics on the website, and relayed concern over unclear direction by Council to the General Plan Advisory Committee (GPAC), a cancelled Request for Proposal (RFP) for an outside consultant, and the number of housing units to be built in the City over the next eight years. Volume 65 - Page 483 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Lee Pearl complimented the ideas provided by the new Council Members and suggested seeking funds to acquire the best technology for the City. In response to Council Member Weigand's suggestion, City Manager Leung indicated that the City will continue to search for grant opportunities. In response to Council Member Weigand's inquiry, City Attorney Harp indicated that environmental justice is a separate category that staff can look into. Mayor Blom suggested a straw vote to access general support to refine the priorities for the Aviation Committee. The straw vote was supported unanimously. V. Budget Development — Capital Improvement Program (CIP) City Clerk Brown announced she would be recusing herself and leaving the meeting during discussions relative to the McFadden Plaza Rehabilitation and Bike Path project due to real property interest conflicts. Mayor Blom announced he would be recusing himself and leaving the dais during discussions relative to the Balboa Island Drainage System project based on his interest in property located at 224 Marine Avenue. Public Works Director Webb and Deputy Public Works Director/City Engineer Houlihan utilized a presentation to discuss how new projects are selected for the CIP, display the Facilities Financing Plan (FFP), review the Lower Harbor Federal Channel Dredging project, Central Library Lecture Hall project, Balboa Island Drainage System project, 15th Street Beach Restroom Replacement project, Newport Bay Trash Wheel project, Balboa Peninsula Fire Station and Branch Library project, and McFadden Plaza Rehabilitation and BikPath project, and provided information about the upcoming FY 2023-24 CIP. In response to Council Member Stapleton's question, Public Works Director Webb indicated that the City was awarded approximately $10 milliorrfrom a grant for the dredging project and the City agreed to add $10 million to match it. 19 Regarding the Central Library Lecture Hall project, Mayor Pro Tem O'Neill noted that project the will return to Council after the bids are received and expressed interest in Council previewing it, noted substantial cost increasesNand ways to handle the project. In response to Council Member Weigand's question, Public Works DirWtor Webb indicated that a policy decision will be needed to increase the 50/50 split arrangement, private funding is allowable, discussed time limits and boundaries on holding bids, grant funding opportunities, and the cost burden once the City is under contract. In response to Council Member Grant's questions, Public Works Director Webb relayed that the 50/50 split is for the $17.5 million all -in project cost, noted an increase in prices due to inflation, and discussed options for value engineering. Mayor Pro Tem O'Neill discussed options for this project, categorized the project as a "nice to have," and relayed his concern with the project costs. Council Member Avery expressed excitement for the project, suggested digging deeper and finding options to make it happen, and expressed optimism that the project will be completed. Council Member Stapleton thanked and commended Jill Johnson -Tucker for her efforts and noted being cautiously optimistic for better bids. Mayor Blom supported the project, noted the history of increased building costs and bids, the value of upgrading the general infrastructure for public benefit with a long-term goal, a history of development, growth, and investment in Newport Beach, and being aware of the costs. Mayor Pro Tem O'Neill noted the importance of the Balboa Island Drainage System project and, in response to his question, City Manager Leung confirmed that the project is funded by the General Fund. In response to Council Member Grant's question, Public Works Director Webb indicated that the same approach will be needed for Little Balboa Island. Council Member Avery noted that Balboa Island is expensive and suggested having residents contribute to the drainage, undergrounding, and seawall. Volume 65 - Page 484 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Dennis Bress expressed excitement for the Balboa Island Drainage System project, thanked Council for listening to the people, noted that the residents paid $20,000 per home for underground utilities, and thanked staff for their work on Agate Avenue. Jim Mosher questioned whether the City will abandon the tide valves and suggested simplifying the drainage system through automation to make it more reliable. Linda Kensey asked Council to remember Little Balboa Island when planning. Chuck Fancher expressed gratitude for the Balboa Island Draining System project, expressed concern relative to the use of General Funds for the benefit of Balboa Island, noted changes in the flood horizon schedule, climate and weather pattern changes, and the possibility for more water and flooding issues. Public Works Director Webb clarified that the City's goal for the tide valves is to permanently seal them and direct the water through the underground drainage system. In response to Council Member Avery's question, Public Works or Webb indicated that four pumps are in the new system and portable pumps can be added. In response to Council Member Stapleton's question regarding th 15th Street Beach Restroom project, Public Works Director Webb confirmed that there will be public outreach, recapped past conversations, and relayed the need for discussion on design elements. Mayor Blom noted community concerns that the City is going to build bathrooms for homeless residents and stated that the design should not convey this idea. Mayor Blom informed the public that the Newport Beach 'Trash Wheel project was former Council Member Duffy Duffield's project that he worked on for several years. Public Works Director Webb displayed the trash wheel location and picture of the log boom. Council Member Stapleton noted residents are a jer to work with staff to discuss design concepts for the Balboa Peninsula Fire Station and Branch ibrary and, in response to his questions, Public Works Director Webb relayed an $8.5 million all in cost for the new Peninsula Fire Station while the Corona del mar Fire Station cost approximately $7 million, discussed variables for the cost of the Balboa Peninsula Fire Station, the potential purpose and function of the library and tot lot playground, and next steps. Mayor Blom expressed the opinion that the project could emulate what has been done in Corona del Mar, noted discussions about switching the fire station and library locations, and acknowledged that the project may cost more than the Corona del Mar project. Regarding the McFadden Plaza Rehabilitation and Bike Path project, Mayor Blom relayed that the historical nature of the piers can be brought back while maintaining a robust infrastructure, preferred a reimagined pier to emulate the culture that established it, suggested a holistic approach to the project, and indicated that public input is needed at this stage. In response to Council Member Grant's question, Public Works Director Webb noted that the idea of replacing the restaurant at the end of the Newport Pier was community driven but is at the discretion of Council, stated that regulatory agency considerations need to also be taken into account in the Coastal Zone, and provided suggestions of how to move forward. Council Member Stapleton agreed with Mayor Blom's comments to provide a marquee venue at the pier. Council Member Avery believed this project is analogous on a smaller scale to the Fun Zone area, the pier needs to be reimagined, the pier should not visually dominate the area, the cost for the work on the pier will be high, the project will need to be phased over time, a draft sketch of the vision will be needed to keep the project alive, and opportunities for infrastructure could provide protection from big waves. Dennis Bress suggested adding a mobility plan at the pier and provided suggestions, noted challenges, and discussed opportunities for electric vehicle use. Volume 65 - Page 485 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 VI. Nancy Scarbrough suggested long-term planning consideration to establish a community center in the westside of Newport Heights and the airport area. Carmen Rawson agreed with separating the bicycle and pedestrian trails in the McFadden Plaza area, but not the rest of the Peninsula, suggested sea level rise fees to fund protection from higher waves and peak tide effects, and recommended increasing the TOT fee by one percent to fund beach area flooding issues. Ken Rawson requested that the bicycle study for McFadden Square be modified to include the parking lot near the bike path coming from 36th Street and McFadden Square and the entire way down the boardwalk to Balboa Pier. He believed that stopping the study at 15th Street does not fully address the problem and would be a mistake. Jim Mosher questioned whether the trees posted for removal at the Balboa Peninsula Fire Station and Branch Library properties are part of the CIP and if modeling was conducted to determine if Harbor dredging will improve the flushing around Newport Island. He discussed items from the January 29, 2022 Council meeting that received a unanimous vote, asked which projects happened and which did not, and expressed concern that the subcommittee to look at purchasing land for a future Police Department was appointed by staff instead of Council. Adjournment — 12:27 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 AiLll%_ ouncil Chambers at 100 Civic Center Drive on January 25, 2022 at 12:00 p.m. ah Blom Lyor Volume 65 - Page 486