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HomeMy WebLinkAbout01 - MinutesOctober 10, 2023 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Study Session and Regular Meeting September 26, 2023 I. ROLL CALL - 4:04 p.m. Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Councilmember Brad Avery, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Corona del Mar Village Commercial Corridor Land Use and Parking Study Senior Planner Westmoreland and Associate Planner Perez utilized a presentation to discuss the objectives of the study, the Corona del Mar commercial corridor, land uses in the corridor, outdoor dining, parking requirements, parking inventory, the municipal parking lots, parking management strategies, opportunities for alternative transportation, the anticipated cost of the study, and recommendations. Councilmember Kleiman reviewed the goals, opportunities, consumer habits, constraints for commercial properties, and regional parking solutions. She expressed hope that Council is supportive and noted the model can be duplicated for use in other villages throughout the City. r, Councilmember Grant suggested capturin metrics on what parking would look like with and without City -waived parking requirements Mayor Blom stated that the declineain streets is an epidemic in America and pointed out that small shops build communities, but times have changed, and parking, consumer use, and technology should be reevaluated. He indicated that the use of alternative transportation is a benefit to the City, believed there needs to be a holistic approach, noted past corridors that were once successful but are no longer, stated he supports the Request for Proposal (RFP) process to gain a consultant'�persWctive, and thanked staff for their work. Councilmember Avery supported the study and the possibility of applying it to other areas of the City, expressed concern for retail stores, suggested a healthy mix of stores, services and restaurants, and noted that small stores and commercial retail need parking. Councilmember Grant agreed with taking a holistic view, the need to mix business with a community and village feel, and suggested partnering with the Corona del Mar and Newport Beach Chambers of Commerce. In response to her question, Senior Planner Westmoreland confirmed that Corona del Mar corridor consists of almost 50 percent restaurants. Councilmember Kleiman stated that the intention of the study is to assist with some of the constraints noted by property owners as a result of existing land use and zoning restrictions, increase opportunities without burdening the surrounding community, and identify additional parking opportunities. She emphasized that the study should be a comprehensive look that includes the beaches and considers the ripple effect, include dialogue with the property owners, businesses, residents, and provide an opportunity to balance needs. Volume 65 - Page 626 City of Newport Beach City Council Meeting September 26, 2023 Debbie Steven, Corona del Mar Residents Association, supported the idea, thanked Councilmember Kleiman for bringing the matter forward, noted the need to consider balance, and asked Council to support the study. Jim Mosher suggested looking at having vertical mixed -use housing in this area. Bernie Svalstad noted two past studies for this area, supported the idea, questioned how it will tie-in with the new General Plan Update, suggested talking with Scott Laidlaw for his expertise, and thought the study should include walk-ups. Denys Oberman thanked staff and Councilmember Kleiman, noted the villages are evolving and Newport Beach's success is based on a smooth connectivity between them, and recommended considering this evolution. In response to Mayor Blom's question, Senior Planner Westmoreland stated that the curb of Pacific Coast Highway on the northern end is where the Coastal Zone ends. Deputy Community Development Director Campbell noted that this corridor has always been for commercial use, the community rejected mixed -use in 2006, and the question can be revised in this study or the General Plan Update. Mayor Blom expressed interest in including the opportunity for mixed - use housing into the RFP, supported workforce housing,jdnoted connectivity is being considered. 1 .0SS3. Policy Discussion to Consider the Nightly Closure of All Public Restrooms in the City Public Works Director Webb, Superintendent Brodowski, and Supervisor Mason utilized a presentation to review the public restrooms and janitorial services, examples of various restroom facilities and locations, survey results restrooms that are closed at night, nighttime restroom closure considerations, costs/use table, variables for cost and resource estimates, cost estimates for nighttime closure of all 36 restrooms, and a map with associated costs of 13 select restrooms considered for closing at night. Public Works Director Webb further discussed the use, abuse, and loiterin the 19th Street restroom and Newport Pier restroom. In response to Councilmember Stapleton's question, Public Works Director Webb clarified that, except for fie restrooms 1 of the restrooms are currently open 24 hours a day, seven days a week. In response to C%nci ember Kleiman's question, City Manager Leung clarified that the survey was predomi�r�tely for Orange County, but there were a couple of other cities included. Councilmember Kleiman noted her initial research with many beach cities and thought that having the restrooms open 24 hours prohibited safe and secure use. She supported overnight closure of restrooms and thought the monetary cost can be addressed efficiently and outweighs the resource expenditure for responses and repairs. Councilmember Stapleton concurred with Councilmember Kleiman, noted activity he has witnessed at the 58th Street and Bob Henry Park restrooms, suggested using technology such as motion detection and alarms, referred to this matter as "all or nothing," and deferred to staff to determine the types of closures. Councilmember Weigand thanked Councilmembers Kleiman and Stapleton for bringing this matter forward. In response to his questions, City Manager Leung stated that the City did not ask other cities to share their opinions about the overnight restroom closures. He expressed appreciation for the cleanliness of the restrooms and thought they are a good resource. Public Works Director Webb indicated that restrooms need to be cleared periodically due to being occupied. Councilmember Weigand suggested identifying closing times by area, determining the contractor cost, process for closing the restrooms in other cities, and closing overnight access to public restrooms with consideration for restroom use. Volume 65 - Page 627 City of Newport Beach City Council Meeting September 26, 2023 Councilmember Grant discussed the difference between the cost to clear and lock restrooms, clarified the budget allocated to clearing, and suggested distinguishing the costs for each. Mayor Pro Tem O'Neill reviewed the costs, noted the scale tips after year two, suggested using automatic locks if the overnight closures will last longer than two years and the number of restrooms to be closed increases beyond 13, and viewed it as an ongoing investment. In response to Councilmember Weigand's question, City Attorney Harp reviewed the restroom use prohibitions and noted the challenges for enforcement. Councilmember Avery supported the nightly closing of the proposed 13 restrooms, suggested keeping the restrooms open that are on the route from the Newport Pier to Lido Village until the bars and restaurants close, and noted the need for flexibility to change course for sites that are an issue. Councilmember Grant emphasized the need for co m unity and establishment owners' involvement and communication to eliminate unintendensequences. Denys Oberman expressed approval for nightly restroom closures, noted that unintended uses occur due to having the restrooms available, expressed concern for safety and security, suggested taking a simple approach to resolving the problem, and asked Council to move forward. Joe Angelo noted that individuals live behind the 15th Street restroom, discussed activities around the shower area, expressed concern for NewpWt Beach losing its integrity, suggested the restroom close when the beach closes, and asked for action. 01 Jim Mosher agreed with Councilmembe4&igand's comments, noted limited restroom options during the hours of 2:00 a.m. to 6:00 a.m., a sanitation problem and Hepatitis A outbreak in 2017 among the homeless population ip San Diego County, asked if the Public Works Department has gathered input from the City's Homeless Coordinator, and suggested that the City consider de.6ign solutions. Mayor Blom supported nightly'Rosure of restrooms and evaluating the outcome, relayed how the problem at the Civic Center was resolved after locking the restroom at night, opposed taking public safety personnel away from other matters to respond to restroom issues, and noted a willingness to spend money on infrastructure investments that improve the City. Councilmember Kleiman concurred with Mayor Blom and emphasized that nighttime use of the restrooms is often not consistent with its intended use, and that not closing all of the restrooms might burden other areas of the City that have restrooms open, supported nightly closure of all restrooms, and acknowledged direct and indirect costs. Councilmember Stapleton supported nightly closure of all restrooms and relayed an encounter with drug users in a restroom. Councilmember Weigand supported the 13 restrooms recommended for nightly closure, suggested evaluating each location individually, but opposed beginning with the nightly closure of all restrooms. City Manager Leung noted Council's consensus to use automatic locks, relayed that the City will not be able to close all 36 restrooms at one time, and suggested a phased approach, community notification, and returning to Council with an implementation plan. Mayor Blom concurred, emphasized that time is of the essence, and relayed the Police Department's support. Mayor Pro Tem O'Neill questioned if there is consensus to use automatic locks on all restrooms. Volume 65 - Page 628 City of Newport Beach City Council Meeting September 26, 2023 City Attorney Harp asked for clarification of Council's position regarding automatic locks on all or a portion of the restrooms. Councilmember Kleiman thought the study session should provide general direction to staff and more information on soft costs is needed. Mayor Blom inquired if Council would like to see direction on closing all of them. City Attorney Harp asked if Council would like the item brought back for a more detailed study session. Councilmember Grant concurred with implementing a phased approach and requested a detailed list of priority sites and the associated costs. Mayor Pro Tem O'Neill indicated that the City should move forward with the proposed 13 restrooms plus the restroom at 58th Street, and have a future discussion relative to the nightly closure of all restrooms. Councilmember Stapleton requested that the restroom on 58th Street be prioritized. City Manager Leung noted staff will move forward wi the proposed 13 restrooms plus 58th Street, and will return to Council with costs and axlementation plan for the others. In response to Councilmember Kleiman's questions, Public Works Director Webb displayed the slide of the proposed 13 restrooms and how the restrooms were selected in partnership with the Police Department. 4 In response to Councilmember Stapletn's question, Public Works Director Webb noted that neither of the piers are included because they receive frequent use and asked for Council's direction on closing times. 16 In response to Councilmember Kleiman's question, Public Works Director Webb stated that the Corona del Mar beaches are not on the list. Supervisor Mason noted an evening vandalism problem, but not a homeless problem, at that location. Councilmember Kleiman noted other unintended uses reported in the Police bulletins, expressed concern for pushing problems to other parts of the City by selectively' closing restrooms, and expressed interest in including restrooms adjacent to the beaches. Supervisor Mason reported that restrooms with automatic locks have as many issues as those that do not, noted successful areas that utilize a combined approach of automatic locks and manual clearing, and suggested a hybrid approach. Councilmember Kleiman proposed coming back for a more robust conversation and with more information, agreed that automatic locks will not solve but rather mitigate issues, suggested a more vetted propo? al, and possibly a hybrid approach. Mayor Blom directed staff to return with more information for Council's consideration. III. PUBLIC COMMENTS Nancy Gardner, representing Good Neighbor Newport, explained the composition, purpose, and interest of the group and indicated that, to improve the tone during campaigns, the group will be offering candidates an optional campaign code of conduct to sign. She provided a copy of the code of conduct and asked for Council and the public to provide feedback. Jim Mosher relayed the constitutional right to cross the beach to access the water at any hour and further questioned the reason behind Item XIII regarding formally opposing Assembly Constitutional Amendment 13 and Assembly Constitutional Amendment 1. 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. IV. CLOSED SESSION — After Study Session — Council Chambers Conference Room A. CONFERENCE WITH LEGAL COUNSEL Volume 65 - Page 629 City of Newport Beach City Council Meeting September 26, 2023 EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Steven Shulman v. City of Newport Beach Workers' Compensation Appeals Board Case No. ADJ8398388 Councilmember Weigand recused himself from Item IV.A due to being biased on the matter. V. RECESSED — 5:52 p.m. VI. RECONVENED AT 6:05 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Robyn Grant, Councilmember Lauren Kleiman, Erik Weigand CLOSED SESSION REPORT City Attorney Harp announced that no reportable actions were INVOCATION — Pooneh Khazei, Baha'i Community PLEDGE OF ALLEGIANCE — Mayor Blom NOTICE TO THE PUBLIC mber Brad Avery, Councilmember Aber Joe Stapleton, Councilmember XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Councilmember Kleiman: • Attended the Fiends of OASIS Ca s and Coffee event, the 25th Annual Newport Beach Fire and Lifeguard Appreciation Dinner, the Newport Bay Trash Interceptor Groundbreaking Ceremony, and the Newport Beach 1/1 Marines Foundation Mess Night • Announced the CalOpAma Enrollment Lunch and Learn at the OASIS Senior Center Councilmember Stapleton: • Thanked the Commodores Club and Newport Beach Chamber of Commerce for hosting the 25th Annual Newport Beach Fire and Lifeguard Appreciation Dinner • Attended the Newport Bay Trash Interceptor Groundbreaking Ceremony • Thanked Mike Zimmerman for the OASIS Senior Center Cars and Coffee event, Fire Battalion Chief Philip Puhek for taking the Newport Beach Foundation Distinguished Citizen Program members on a tour of the Fire Department, and Judge Steven Bromberg for starting the Newport Beach 1/1 Marines Foundation Mess Night and expressed hope it will become an annual event Councilmember Grant: • Attended the 25th Annual Newport Beach Fire and Lifeguard Appreciation Dinner, the Newport Bay Trash Interceptor Groundbreaking Ceremony, the Newport Beach 1/1 Marines Foundation Mess Night and also thanked Judge Bromberg, the OASIS Senior Center Cars and Coffee event, the 18th Annual Art in the Park, and the Newport Beach Police Department's Mobile Cafe • Announced the 61st Annual Sandcastle Contest on October 1, 2023, the Newport Beach Fire Department's Fire Service Day at Fire Station 7 on October 8, 2023, and a meeting hosted by Speak Up Newport to discuss "What Are Our Kids Learning in School These Days?" on October 11, 2023 Volume 65 - Page 630 City of Newport Beach City Council Meeting September 26, 2023 Councilmember Avery: • Attended the 25th Annual Newport Beach Fire and Lifeguard Appreciation Dinner, the Newport Bay Trash Interceptor Groundbreaking Ceremony, and the Operations Committee meeting of the Orange County Sanitation District Mayor Pro Tem O'Neill: • Acknowledged former Mayor Duffy Duffield for his hard work on the Newport Bay Trash Interceptor project • Announced the Pacific Air Show in Huntington Beach on September 29 to October 1, 2023 Mayor Blom: • Noted that the Councilmembers who attended the Newport Beach 1/1 Marines Foundation Mess Night did drink from the grog XIII. MATTERS WHICH COUNCILMEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Consider formally opposing Assembly Constitutional Amendment 13 as an attack on taxpayers' ability to pass future taxpayer protection measures or restore critical provisions from Proposition 13 when courts undermine them [O'Neill and Weigand] The City Council unanimously concurred to bring the matted baV a future meeting. Consider formally opposing Assembly Constitutional Amendment 1 that would lower the threshold on the percentage of votes needed to raise special taxes from the current two-thirds to only 55% [O'Neill and Grant] h _ The City Council unanimously concurred to bring the matter back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Councilmember Weigand asked for clarification on Item S13 (Approval of the Joint Use Agreement Between the City of Newplorf-Beach and -��port-Mesa Unified School District for Use of Mariners Branch Library). Mayor Pro Tem O'Neill stated that his motion would include the redline versions and City Attorney Harp larified that the motion would apply to the version handed out earlier today. XV. CONSENT CALE AR READING OF MINUTES ANIFORDINANCES 1. Minutes for the September 12, 2023 City Council Meeting 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. ORDINANCE FOR ADOPTION 3. Ordinance No. 2023-14: Non -Exclusive Commercial Solid Waste Franchise 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) Conduct second reading and adopt Ordinance No. 2023-14, An Ordinance of the City Council of the City of Newport Beach, California, Granting a Non -Exclusive Franchise Agreement for Commercial Solid Waste and Divertible Materials Handling Services Within the City of Newport Beach to the so -named company. RESOLUTIONS FOR ADOPTION Volume 65 - Page 631 City of Newport Beach City Council Meeting September 26, 2023 4. Resolution No. 2023-54: Summary Vacation of Existing Public Waterline Easement at 352 Poppy Avenue 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. 2023-54, A Resolution of the City Council of the City of Newport Beach, California, Summarily Vacating a Public Waterline Easement at 352 Poppy Avenue (Portion of Lot 5 of Block "A" of Tract 673); c) Direct staff to process the summary vacation of said easement; and d) Direct the City Clerk to have the Resolution and summary vacation documents recorded by the Orange County Recorder. 5. Resolution No. 2023-55: Summary Vacation of Certain Existing Public Sewer Easement Areas at 850 San Clemente Drive 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. 2023-55, A Resolution of the City Council of the City of Newport Beach, California, Summarily Vacating a Portion of a Public Sewer Easement at 850 San Clemente Drive (Parcel 1 of Lot Merger No. LM2018-004); c) Direct staff to process the summary vacation of said certain easement areas; and d) Direct the City Clerk to have the Resolution and summary vacation documents recorded by the Orange County Recorder. CONTRACTS AND AGREEMENTS 6. Concrete Replacement Program FY 2023-24 (Project No. 24R06) — Award of Contract No. 9378-1 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) the CEQA Guidelines, because this project has no potential to have a significant effect on the environment, b) Approve the project plans and specifications; c) Award Contract No. 9378-1 to Grigolla & Sons Construction Company, Inc. for the bid price of $989,250 for the Concrete Replacement Program FY 2023-24, and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $200,000 (approximately 20 percent of total bid) to cover the cost of unforeseen work nd% ncluded in the original contract; and e) Approve Budget Amendment No. 24-023, appropriating $77,756 in increased expenditures in 01201927-980000-24R06 from the General Fund Capital Projects Fund's unappropriated fund balance. 7. Amendments to Professional Services Agreements for JLee Engineering, Inc., Bureau Veritas North America, Inc., and CSG Consultants, Inc. for Building Safety Related Services 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) Approve and authorize the Mayor and City Clerk to execute Amendment No. One to Professional Services Agreement with JLee Engineering, Inc. (C-8507-7), to increase the contract amount by $250,000, not -to -exceed amount of $610,000; c) Approve and authorize the Mayor and City Clerk to execute Amendment No. Three to Professional Services Agreement with Bureau Veritas North America, Inc. (C-8910-1), to increase the contract amount by $150,000, not -to -exceed amount of $270,000; and d) Approve and authorize the Mayor and City Clerk to execute Amendment No. Three to Professional Services Agreement with CSG Consultant (C-8937-1), to increase the contract amount by $250,000, not -to -exceed amount of $370,000. Volume 65 - Page 632 City of Newport Beach City Council Meeting September 26, 2023 8. Second Amendment to Office Lease with Peregrine Realty Partners, Inc. for Use of Suite 650 Located at 1201 Dove Street (C-9017-2) a) Find this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing facilities) and Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; and b) Authorize the City Manager and City Clerk to execute the Second Amendment to Office Lease between the City of Newport Beach and Peregrine Realty Partners, Inc. for use of City Property, office space Suite 650 located at 1201 Dove Street, in a form substantially similar to the amendment attached to the staff report. 9. Purchase of Phoenix G2 Fire Station Alerting Systems 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 single source selection and purchase of US Digital Designs, Inc. Phoenix G2 Fire Station Alerting Systems for Fire Stations 1, 3, 4, 6, 7, 8 and Lifeguard Headquarters for a total cost of $322,079.60, and authorize the City's Finance Department to issue the Purchase Order. S13. Pulled from the Consent Calendar MISCELLANEOUS 40 10. Planning Commission Agenda for the September 023 Meeting Receive and file. Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Weigand, to approve the Consent Calendar, except the item removed (Item S13); and noting amendments to Item 1. The motion carried unanimously. XVI. ITEM REMOVED FROM THE CONSENT CALENDAR S13. Approval of the Joint Use Agreement Between the City of Newport Beach and Newport - Mesa Unified School District for Use of Mariners Branch Library (C-9418-1) City Manager Leung d what is being brought forward for adoption. In response to Councilmember Weigand's question, City Manager Leung explained the timeline for review and revisions, relayed the Superintendent's support for the latest version, and noted other school district members involved in the review process. Councilmember Weigand expressed concern relative to the edits received earlier in the day, favored the original version, thought the school district and City are equals, noted the unique opportunity, questioned what will happen if the School Board does not vote in favor, and stated he is not prepared to vote on this matter tonight. Councilmember Grant agreed that receiving the latest edits shortly before the Council meeting is not optimal, acknowledged the importance of this matter, and expressed approval for the current version. Councilmember Kleiman indicated that the changes were intended to protect the City's interests relative to the materials in the library's collection and thought the district would have shared the revisions with School Board members. Councilmember Avery expressed support for the agreement. Jim Mosher thought it would not be prudent to enter into an agreement with last minute revisions, noted there has been no mention that the most recent revisions have been reviewed by the City Volume 65 - Page 633 City of Newport Beach City Council Meeting September 26, 2023 Attorney, and objected with moving forward without the approval of the Board of Library Trustees, whom he understood to be the contracting authority pursuant to the City Charter. Mayor Blom stated that the City's job in a joint use agreement is to prioritize the City and resident's interests. Mayor Pro Tem O'Neill disagreed with Mr. Mosher's interpretation of Section 708 of the City Charter regarding the Board of Library Trustees' authority and stated that the motion pertains to the version received that day, contains redlines, and includes a definition of new material. Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Kleiman, 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) approve the amended Joint Use Agreement between the City of Newport Beach and Newport -Mesa Unified School District for use of Mariners Branch Library for a 20-year period. 10 Councilmember Weigand stated his opposition is not because he disagrees with the item but because he thinks it is a tandem issue and the School Board should have time to review the suggested amendments prior to there being a votA With Councilmember Weigand abstaining, the motion carried 6-0-1. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Nancy Scarbrough shared her car accident experience and commended Police Officer Varela for going above and beyond to assist her, and Chief Cartwright for setting high standards for the Newport Beach Police DepaA XVIII. PUBLIC HEARING 11. Community Development Block Ant Program Year 2022-23, Consolidated Annual Performance and Evaluation Report (C-8209-8) Assistant City Manager Jurjis and Real Property Administrator Wooding Whitlinger indicated they were available for questions-4 Mayor Blom opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Stapleton, 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 2022-23 CAPER; and c) authorize the City Manager or her designee to submit the Program Year 2022-23 CAPER to HUD. Mayor Pro Tem O'Neill expressed enthusiasm to see the Section 108 loan being paid off. The motion carried unanimously. XIX. CURRENT BUSINESS 12. Approval of 2023 Water and Sewer Rate Studies and Setting of Public Hearing for Water and Sewer Rates Volume 65 - Page 634 City of Newport Beach City Council Meeting September 26, 2023 Q XXI. Utilities Director Vukojevic and Finance Director Al -Imam utilized a presentation to review the key discussion points from the May 11, 2023 and July 26, 2023 Finance Committee meetings and August 22, 2023 City Council study session, noted the rates studies are available on the City's website, and discussed the Newport Beach Water System, proposed water rates and typical monthly consumer costs, wastewater/sewer capital needs, proposed sewer rates, typical monthly consumer costs, and recommendations. Jim Mosher thought the studies are hard to follow, noted the per unit cost and lower fixed cost for recycled water, and questioned the factors for sewer consumption variable rates. Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Avery, 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; b) approve the 2023 Water and Sewer Rate Studies; c) direct staff to send a notice of proposed water and sewer rates to property owners and customers in compliance with Proposition 218 State Law; and set the date of November 14, 2023, for the tabulation. The motion carried unanimously. MOTION FOR RECONSIDERATION — None ADJOURNMENT — Adjourned at 6:47 p.m. in memory of Tom Evans The agenda and amended agenda were poste�-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 21, 2023 at 4:00 p.m. and September 22, 2023 at 5:40 p.m., respectively. Leilani I. Brown City Clerk Noah Blom Mayor Volume 65 - Page 635