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HomeMy WebLinkAbout01/24/2023 - Study Session / Regular MeetingCITY OF NEWPORT BEACH 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 Planner Murillo, 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 City'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 Manhattan Institute fellow Connor Harris that finds the opposite occurs within California communities, provided an example of in -lieu fees, expressed concern for 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 Council Member 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 noted the importance of recognizing that the state -mandated by -right density bonus laws, which incentivize developers to propose projects that include affordable housing, are already in effect. 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 next eight years to meet the RHNA requirements and how the proposed ordinance will affect the 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 Ana case study and expressed the opinion that more studies would be beneficial. Larry Tucker expressed the opinion that Council should gather information from the development community and stated that density bonus has been effective for generating units throughout the City. 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 gained consensus from Council to ruminate on the item and return to staff with guidance. III. PUBLIC COMMENTS Jim Mosher thanked the City Attorney for adding information to the agenda regarding Closed Session Item IV.C, and suggested a 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 X.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 (NBPTEA), 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, Aaron C. Harp, City Attorney, Leilani Brown, City Clerk, and unrepresented employees in positions 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 advice 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 meeting 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: • 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 troop tour of City Hall and spoke with kindergarten classes at Newport Christian School • Announced the Mayor's Dinner on February 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. Resolution No. 2023-7: Big Canyon Habitat Restoration Project - Phase 3: Adoption of License Agreement and Design Plan (C-9135-1) [190-20231 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 the City 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) [381100-2023] 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) [381100-2023] 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 [381100-2023] 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 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) [381100-2023] 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 Amendment No. 8 to the Software Maintenance Agreement with Superion, LLC of Lake Mary, Florida, for a 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) [381100-2023] 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 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 [100-20231 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) 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 — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Joe Ferrino believed documents were missing related to the 2224 Marine Avenue development and expressed concern relative to the approval. Cathy Gilbert informed Council that the St. Andrews Presbyterian Church prayer group is praying for them. Joseph Kogon and Jessica Penunuri requested lights to be added to the Bonita Canyon Sports Park pickleball courts. Dennis McGavack discussed the 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, Mr. Egawa 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 [100-20231 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 to 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, 2023. The motion carried unanimously. 16.Ordinance No. 2023-2: A Code Amendment Updating Accessory Dwelling Unit Regulations to Implement Council Policy K-4 and to Comply with State Law (PA2021-113) [100-20231 Community Development Director 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 Tern 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 Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and New State Law Requirements Related to Accessory Dwelling Units (PA2019-248). The motion carried unanimously. XIX. MOTION FOR RECONSIDERATION - None XX. ADJOURNMENT - 7:24 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 Chambers at 100 Civic Center Drive on January 19, 2023, at 4:00 p.m. r Leilani I. Brown City Clerk Volume 65 - Page 479