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HomeMy WebLinkAbout01 - MinutesFebruary 27, 2024 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Special Meeting - Planning Session February 3, 2024 I. CALL THE MEETING TO ORDER - 9:00 a.m. Roll Call Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand Absent: Councilmember Brad Avery Invocation - Councilmember Grant Pledge of Allegiance - Councilmember Blom t Mayor O'Neill thanked everyone in attendance and City Manager Leung reviewed the meeting agenda. II. UPDATE ON FINANCIAL STATUS AND BUDGET DEVELOPMENT - REVENUES Finance Director Al -Imam utilized a presentation to review the fiscal year 2024-25 preliminary General Fund revenue outlook, property tax revenue over the years N revenue by category, residential sale trends, and sales tax revenue over the years for major industry grQ ps. 10 In response to Mayor O'Neill's question, Finance Director Al -Imam utilized the presentation to review the graph showing the sales tax revenue by year with trends and projections by major industry group. Mayor O'Neill noted that revenue was down in auto and transportation and flat for consumer goods. Finance Director Al -Imam continued with the presentation to review Transient Occupancy Tax (TOT) revenue over the years, commercial and resident' TOT revenue with an 8% growth this year and about a 2.5% growth next year for hotels, the TOT revew utlook, and other revenues. Mayor O'Neill relayed that the Finance Committee will use the references from the presentation as a base model for the upcoming budget, and in response to his questions, Finance Director Al -Imam stated that the second quarter will be discussed in February and revenues for the next fiscal year will be discussed in March. Mayor O'Neill indicated t4at the March discussion will also include how all the revenues are being projected, which will factor into how the budget will be created by the City Manager. In response to Councilmember Weigand's reference to the decline in commercial property tax, Finance Director Al -Imam explained that the data is received from the County Accessor's Office and preliminary data based on sales and evaluation numbers through December 31, 2023 has been received and overall growth is projected. He indicated that he is not sure of the expected decline number to date. Councilmember Weigand noted that this market is struggling. City Manager Leung noted that residential property tax is the City's solid base revenue. In response to Mayor Pro Tem Stapleton's question, Finance Director Al -Imam noted short-term lodging (STL) increases in 2021-22, permit counts have been above the threshold for a couple of years, there was a dip below the threshold for the first time a few months ago, a reduction in permits by 200 in the last two years, and being at the cap now. City Manager Leung stated that data is received only once a year for individual STL permits which poses a challenge to determine the trend, and proposed a more frequent collection to assist with forecasting. Councilmember Grant noted the current 1,550 STL permit count is down from over 1,600. City Manager Leung indicated that the City Council set a cap at 1,550 STL permits, additional permits for mixed -use need to go to the California Coastal Commission, the count was over 1,600 then dipped below 1,550 which allowed permits on the waiting list to get in, and a waitlist does exist. Volume 66 - Page 31 City of Newport Beach Planning Session February 3, 2024 III. LONG RANGE PLANNING — CAPITAL IMPROVEMENT PROGRAM (CIP) Public Works Director Webb utilized a presentation to discuss the CIP, how projects are selected, prior Council goals and priorities, and City planning documents; and highlighted the Pavement Management Plan and the asphalt pavement life cycle. In response to Mayor O'Neill's question, Public Works Director Webb clarified the funding for the slated and backlogged projects and noted that staff will be asking for an increase in the CIP budget to be $8.5 million. Public Works Director Webb continued with the presentation to continue discussions about the Pavement Management Plan and to review the Facilities Financing Plan (FFP) and reserves. Mayor O'Neill stated that lately bids are higher than numbers in the FFP and asked if the FFP amounts need to be increased. Public Works Director Webb stated that all the costs per square foot in the presentation were adjusted, and the FFP is a planning document that is used to create a budget document. Mayor O'Neill expected more development in the airport area and thought it would be an appropriate action to begin transferring more money from the General Fund to the FFP to make sure costs are Afset going further. City Manager Leung agreed and noted that very little is building the reserves, the fund is reliant on development agreements, and staff is coming to Council in late March to discuss development impact fees. In response to Mayor O'Neill's questions, City Manager Leung confirmed that the Library Lecture Hall has already been backed out of the $25 million in FFP reserves. Public Works Director Webb stated that the Boa Island Drainage Project is coming from the $6 million in the CIP, is about $20 million, will span multiple ars, and is not included in the FFP. Finance Director Al -Imam noted that the Balboa Island Drainage project is anticipated to come out of the FFP fund even though it is not in the FFP. A' Public Works Director Webb continued with the presentation to review the'acilities Maintenance Master Plan, Harbor and Beaches Master Plan, and Park Maintenance Master Plan. City Manager Leung expressed concern for rising costs related to the Balboa Island Seawall Replacement in the Harbor and Beaches Master Plan. Public Works Director Webb noted that the increase in linear foot costs for walls is reflected in the table. City Manager Leung stated it was prudent to start including required contributions to ensure full funding. In response to Mayor O'Neill's question, Public Works Director Webb estimated the project to be a 10 to 15 year replacement period. Mayor O'Neill forecasted at least $13 million per year for the project and stated hat setting aside funds would be helpful for future Councils. Public Works Director Webb continued with the presentation to review the Park Maintenance Master Plan. Mayor O'Neill stated he was not surprised that the City needed to do more in the Park Maintenance Master Plan, but was surprised about the amount and indicated that the amount needs to be increased over the next four years. Councilmember Kleiman commended the previous Council for doing the park audit and hoped audits can be included in the long-term plan. Mayor O'Neill agreed and noted the City has 250 acres of park space. Recreation and Senior Services Director Levin invited the public to participate in a survey and to a meeting on February 13, 2024, at 4:30 p.m. to discuss the San Miguel Park all-inclusive playground project. In response to Councilmember Kleiman's question, Recreation and Senior Services Director Levin shared that the neighbors wanted more lighting at Bob Henry Park, but while he thought redoing it would be nice, he did not feel there were safety concerns. In response to Mayor Pro Tem Stapleton's question, Recreation and Senior Services Director Levin relayed that the maintenance for Buck Gully is through a different contract. Public Works Director Webb continued with the presentation to review the building of the FY 2024-25 CIP budget pursuant to the estimates and suggested projects to focus on. Mayor Pro Tem Stapleton expressed an interest in looking into doing something at Lower Castaways and the feasibility of creating a West Newport Beach Community Center maybe in the area of the Avon Street parking lot, Newport Theater Arts Center, and John Wayne Park. Volume 66 - Page 32 City of Newport Beach Planning Session February 3, 2024 Mayor O'Neill stated that a fresh perspective for Lower Castaways would be helpful and suggested creating an ad hoc committee consisting of Mayor Pro Tem Stapleton, Councilmember Blom, and Councilmember Grant at an upcoming City Council meeting. Regarding a West Newport Beach Community Center, he indicated that this project would be a longer discussion but worth looking into. In response to Councilmember Kleiman's interest, City Manager Leung relayed that the City is not actively looking at acquiring land for centralized parking structures at this time. Councilmember Weigand suggested that the ad hoc committee pay close attention to the high traffic and egress at Lower Castaways. Public Comments Nancy Scarbrough asked if the tidelands report anticipates an increase in revenue due to mooring fee increases, noted that the Bicycle Master Plan has not been reviewed in 10 to 15 years and new mobilities are not in the plan that should be considered, such as, vertical takeoff vehicles at the airport, and stated that the Americans with Disabilities Act (ADA) is a law as is rela to the Parks Master Plan and asked if potential vulnerable areas have been considered. In response to Mayor O'Neill's question, Finance Director Al -Imam stated that no assumptions have been made on mooring rate increases. Mayor O'Neill noted that updating the &Wle Master Plan would require that a Councilmember request a future agenda item to create an ad hoc%GWittee. Public Works Director Webb noted the City meets current ADA compliance when it does upgrades.Recreation and Senior Services Director Levin confirmed that all playgrounds are ADA compliant. IV. BUDGET DEVELOPMENT — PROGRAMS AND SERVICES LEVELS Finance Director Al -Imam utilized a presentation to discuss e FY 2024-25 preliminary General Fund expenditure outlook and pension paydown strategy. Mayor O'Neill noted that the surplus amount was considered for the pension paydown strategy and would be discussed again in May or June. Councilmember Weigand noted the 6.5% target assumption for Ca1PERS and Finance Director Al -Imam relayed a 4% return through December and stated their outlook is not as bright as it should be. City Manager Leung indicated that the final rate of return is from June 30, 2023. Finance Director Al -Imam utilized a presentation to discuss the FY 2024-25 preliminary capital funding outlook. City Manager Leung notod that program enhancements are being reviewed, inflationary pressures are considered, and the importance of enhancing the capital infrastructure to build for the future. In response to Mayor O'Neill's question, City Manager Leung stated that the budget does not take into account increased technology uses at the Police Department, nor is staff ready for a discussion because work is in progress with the ad hoc committee. She noted that the idea is to meet with the ad hoc committee, hold a study session, and propose items into the budget which will have costs associated. In response to Councilmember Kleiman's questions, Finance Director Al -Imam explained that the 2% increase for salaries and benefits includes a one-time allocation that is not going to flow into the budget for police recruitments, and reported that, while the net increase is 2%, the reality is a 3% overall impact. City Manager Leung pointed out that the City only budgets for what is in the negotiated agreements and known increases. Assistant City Manager Jurjis and Code Enforcement Supervisor Murray utilized a presentation to discuss the Code Enforcement budget and staffing, the number of cases in 2023, and types of enforcement. In response to Councilmember Kleiman's question, Code Enforcement Supervisor Murray stated that the code cases are organized by Newport Beach Municipal Code (NBMC) Sections and Chapter 5 includes violations for STL properties and would show up in the STL section. Volume 66 - Page 33 City of Newport Beach Planning Session February 3, 2024 Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued with the presentation to discuss the two-tier fine schedule. In response to Council questions, Assistant City Manager Jurjis stated that general law cities are following State law and STL information is unknown; indicated that this applies strictly to Community Development enforcement and all the paperwork has been updated with the values; and confirmed that the Harbor Department code enforcement officer is not part of this discussion. Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued with the presentation to discuss the beach vending and enforcement challenges. Mayor Pro Tem Stapleton supported finding solutions to dealing with the beach vendors and noted that the companies that setup events on the beach should be included in this effort. In response to Councilmember Weigand's question, Assistant City Manager Jurjis agreed that as enforcement increases, vendors will eventually close, at which time the enforcement focus can shift to other projects and thought that more tools are available to have a more proactive enforcement program that will lead to a reduction of vendors. Mayor O'Neill supported the approach and noted concerns by surrounding businesses regarding the beach vendors and the impact on the livelihood of small business owners. Assistant City Manager Jurjis confirmed that staff will come back to Council before the upcoming summe*season. Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued with the presentation to discuss refuse enforcement and refuse enhancement proposals. i Mayor O'Neill relayed that CalRecycle is understaffed or unable to enforce regulations, suggested early efforts on education if the enforcement is transferred to the Community Development Department (CDD), and expressed his support for the transfer. He noted the staffing change proposal and questioned the amount of work. Assistant City Manager Jurjis clarified that the proposal is for a conversion of a part-time position to a full-time position and does not add moV bodies to CDD. Mayor O'Neill expressed concern for full-time employees (FTEs) and there being enough work to justify going up from 1.5 to 2.0 FTEs. Assistant City Manager Jurjis anticipated a two-year period for education and outreach to meet the threshold before dropping off resources. Mayor O'Neill expressed the opinion that the person would not need to spend all their efforts to refuse and could do other code enforcement actions as well. City Manager Leung stated that resources could be reallocated after the initial two-year period. Councilmember Grant reconfirmed the refuse program goal, reviewed the scorecard, and thought it was pretty good and the education and outreach has been efficient, but the commercial side is behind. Public Director Webb noted that the Cityrreceives monthly reports from the State. Councilmember Grant suggested filtering to other information entities and campaigns that can assist with education. Mayor O'Neill noted the option of reminding commercial haulers that their franchise agreements can be pulled if they do not comply, stated that some of the hauler owners live in the City, and suggested reminding commercial haulers that a 28% compliance level is not acceptable when it comes time to renew their agreements. Councilmember Grant noted that the City has a different system for residential and commercial refuse collection, and suggested a conversation in the future about this and other issues. Councilmember Weigand noted that some commercial haulers are small businesses, expressed concerns for the impacts to local businesses when administering fines, and emphasized the importance of education and opportunities to work on franchise agreements with commercial haulers. Mayor O'Neill relayed that most of what is being addressed is Tier 1 haulers and stated that the City needs more compliant Tier 1 haulers. Councilmember Blom supported bringing this into CDD because it aligns with building codes and thought a lot of the City's issues are not with the haulers but with physical space limitations with the new system. He appreciated the education, suggested working with the haulers to seek efficient equipment, systems, and schedules, and noted that recycling organics for restaurants is hard and there should be a focus on infrastructure and receptacles with new construction. Volume 66 - Page 34 City of Newport Beach Planning Session February 3, 2024 Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued the presentation to discuss the commercial businesses in residential neighborhoods and the proactive enforcement proposal. Councilmember Kleiman expressed concern for an effective allocation of staff resources. Assistant City Manager Jurjis relayed that staff schedules are staggered for peak times and days, and Code Enforcement Supervisor Murray reviewed the employee scheduling and enforcement approach. Councilmember Weigand expressed concern that the City may be shifting to a proactive approach, noted his appreciation for the reactive approach, and expressed an interest in adding recovery residences. Assistant City Jurjis clarified that the majority of Code Enforcement's duties are reactive, and due to insufficient staffing, staff will focus on the areas noted in the proactive list. Assistant City Manager Jurjis collected a consensus for a proactive approach for STLs. Councilmember Weigand clarified his support for scouring the internet for illegal STLs. Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued the presentation and discussed resources to enforce issues related to beach vendors, re e, and STLs, fee recovery options, and STL permit fee comparisons. Councilmember Kleiman supported changing fees to be market rate, raising the bar, and encouraging better operators. In response to her question, City Manager Leung indicated thA TQT goes into the General Fund, is not a restricted fund, STL pays into the TOT, and staff will conduct a penalty fine survey with other cities. Mayor O'Neill expressed an interest in condu inline and makes sense. Councilmember Grant suggested phasing any fees. City Manager Leung relayed that the fee Council for adoption. nalysis to ensure that the fees are isiderate when raising enforcement nce Committee and then to the City Councilmember Kleiman asked if other CouncilmembeTWave an interest in adding more police presence to address quality of life issues by expanding the Homeless Liaison Officer and Peninsula Enforcement Team programs to Corona del Mar and Newport Center. Councilmember Blom expressed support. Mayor O'Neill expressed interest in finding out if the Police Chief finds it warranted, stated this would be part of the budget discussion, and sugges d a study session to discuss it. Library Services Director Hartson and Library Services Manager Lightfoot utilized a presentation to discuss cultural arts, current programs, funding sources, program expenditures, and proposed projects. Councilmember Grant noted that it is important to understand that the biggest part of the cultural arts budget is for the sculpture exhibition and the money budgeted for it is a pass -through amount and not part of the City Arts Commission's budget. She thought that the Council needs to decide if it will continue providing support because it technically is a City operation. Mayor O'Neill supported giving Council the discretion to determine the number of phases if the funds are a pass -through. Further, he stated there should be a holistic view of the City's needs, including Police Department and Code Enforcement needs, sculpture changes every two years, a budget that places emphasis on Citywide efforts, grant funding done by the private sector, and a sculpture garden every two or three years. He indicated he did not think the funding was a pass -through, pointed out that CIP projects are the priority, opposed a budget increase, supported decreasing the largest expenditure, and welcomed the opportunity to have the Council make the decisions. Councilmember Grant thought this is an important discussion to get feedback from the Council, noted that the pass -through represents the minimum amount of money to replace the sculptures and no discretion is in place, expressed a need to reevaluate the commitment to the sculpture garden, grant funding, and the vetting process for programming, and thought the sculpture collection at the Civic Center is a priority and the Arts Foundation should not be relied upon to supplement necessary programming, such as the sculpture collection and concerts. Volume 66 - Page 35 City of Newport Beach Planning Session February 3, 2024 In response to Councilmember Weigand's questions, Library Services Director Hartson stated that professional services fluctuate depending on the maintenance needs and timing, thought that there was an opportunity to look at lengthening the time that sculptures are in the park, discussed the impact on the sculptures from beach elements, and indicated there could be cost savings and guideline changes. Councilmember Weigand stated he opposes wrapping utility boxes and supported working with the private sector for an increased awareness of what the sculpture garden does for the community and donation opportunities. In response to City Manager Leung's suggestion to come back with options to move forward with the sculpture garden, Mayor O'Neill suggested that the City Arts Commission provide Council with options. Councilmember Grant suggested that the City Arts Commission offer opportunities for public funding and recognition of the sculpture garden as an incentive. Public Comments Nancy Gardner stated that she is not a fan of public funding for the,&rts and noted that the City is a wealthy community and $10,000 is funded by the Newport Beach Library Foundation. Nancy Scarbrough asked who takes financial responsibility for the emergency services provided to residential care facilities, are the expenses for Fire and Police services gligible for reimbursement by the facility, and if the Fire Medics Program is billed to facilities as a business. Additionally, she questioned if other costs for employment are being considered when converting pa j -tj�positions to full-time. Jim Mosher noted that the pension liability paid down in the next eight years is dependent on Ca1PERS' results, questioned code enforcement efforts relative to gas leaf blowers; discussed the diversion rate in residential areas, the requirement not to contaminate the black carts with organic material, and refuse enforcement obligations, and question if the refuse working group is stir meeting; and suggested reviewing and updating City Council Policy I-10, Fincwcial Support for Culture and Arts. Mayor O'Neill clarified that he was never on the works group and it no longer exists. City Attorney Harp stated that State law requires the City to treat licensed six and under residential care facilities the same as any other residential use and Code Enforcement is in that context, including paramedic services and the Fire Medics Program which is a fee based service for transportation to the hospital and billed at the residential rate, not as a business. City Manager Leung acknowledged the additional costs associated with changing from part-time to full-time employee status, noted pension plan benefit requirements after 1,000 work hours, stated the pension formula is lower with PEPRA, employees are paying a considerable amount towards their contributions, and people are seeking full-time work so consistency and long term employees are factors in the discussion. V. PUBLIC COMMENTS ON NON -AGENDA ITEMS Nancy Gardner noted that the State certified the City's Housing Element which calls for twice the Regional Housing Needs Assessment (RHNA) numbers, encouraged the City to focus on affordable housing, such as work force housing, senior housing, and starter homes, suggested considering inclusionary zoning, explore employer incentives for employee -housing, and support the Housing Trust in the City that is focused on affordability. Jim Mosher suggested that the Council review what planning sessions were in the past and what other cities call them, and suggested holding another type of session that includes bigger priorities, such as the airport, homelessness, RHNA, and other issues. Charles Klobe stated that the Newport -Mesa Unified School District 7-11 Committee is tasked with determining what to do with the land near the City yard. He announced that the committee will meet on February 5, 2024, and encouraged the City to take an interest in what happens to the property. Volume 66 - Page 36 City of Newport Beach Planning Session February 3, 2024 Mayor O'Neill indicated that today's meeting did not cover every issue because that is done regularly at City Council meetings. He expressed appreciation to everyone in attendance. VI. ADJOURNMENT - 11:43 a.m. The special meeting agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on February 1, 2024, at 10:00 a.m. Leilani I. Brown City Clerk Will O'Neill Mayor Volume 66 - Page 37 CITY OF NEWPORT BEACH City Council Meeting Minutes Study Session and Regular Meeting February 13, 2024 I. ROLL CALL - 4:00 p.m. Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Brad Avery, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - None SS2. Proclamation Recognizing Nikki Presley Miliband Mayor O'Neill read the proclamation to recognize Nik"resley Miliband for her extensive leadership and receiving the Orange County B ssociation's Franklin G. West Award. Ms. Miliband thanked the City and expressed gra de for thognition. SS3. Proclamation Recognizing John and Anne Wortmann Mayor O'Neill read the proclamation to recognize John and Anne Wortmann for being two of the City's finest examples of helpers in the City. Mr. and Mrs. Wortmann thanked Council for the recognition. SS4. Recognition of NewpJPt--Mesa Unified School District High School Students Mayor O'Neill read the proclamations and presented them to Corona del Mar High School students Niels Hoffman for tennis, Ava Simos for track, and Melisse Djomby Enyawe for cross country. j Niels Hoffman thanked Council for the recognition, his family, and the team. Ava Simons thanked the City, her friends, family, and her coaches. Melisse Djomby Enyawe thanked Council for the recognition, and her parents and coaches for their support. Mayor O'Neill thanked the parents and coaches and wished the athletes the best. SS5. Housing Element Implementation Program Amendments Assistant City Manager Jurjis provided an update on the work that has been done since the Housing Element certification; discussed the Land Use Element, General Plan Update, Zoning Code Update, objective design standards, and Environmental Impact Report (EIR); and indicated that Deputy Community Development Director Murillo and Assistant City Attorney Summerhill are also in attendance to answer questions. Principal Planner Zdeba utilized a presentation to highlight the background, the reason for the study session, the draft Land Use Element update, the working draft of the policy matrix, new policies to support implementation, City Charter Section 423, implementation actions for the overlay zoning and development standards, objective design standards, horizontal modulation, and CEQA clearance. He reviewed the next steps and proposed schedule. Volume 66 - Page 38 City of Newport Beach City Council Meeting February 13, 2024 Assistant City Manager Jurjis emphasized the schedule is tight. Mayor O'Neill agreed but noted Council's ability to call a special meeting. Principal Planner Zdeba continued the presentation to review accountability in nearby cities, announce that documents are available for review at newportbeachca.gov/heimplementation and newportbeachca.gov/ceqa and comments are due by 5:00 p.m. on March 28, 2024, and share the key takeaways and deadlines. Jim Mosher noted that paper copies of the EIR are at City Hall and all libraries. He stated that November 5, 2024 will be three years into the current eight -year Regional Housing Needs Assessment (RHNA) cycle and questioned housing production, did not think there has been progress in affordable housing development, noted that the airport area is generating affordable housing compared to the total housing being approved, suggested that anyone with similar properties in an overlay district should be eligible for the overlay, and thought there would be a cap on the number of overlays in the event the City met its RHNA number. Larry Tucker hoped that overlays in District 4 at NewlMrt Center are thoughtfully planned and noted the uniqueness of the area, relayed that Charter Section 423 does not apply to zoning changes that are due in February 2025 to iml�kment the Housing Element, reviewed height limits and density in Newport Center, and suggested th City and property owners work together to create a plan. Nancy Scarbrough suggested developing language regarding the and development cap for the community. Debbie Allen Moore thanked Council for recognizing the Newport Center view ordinance from 1958 and expressed support for preserving it. 1W In response to Mayor O'Neill's question, Assistant City Manager Jurjis agreed to craft more language in the Land Use Element or Zoning Code to address the cap on housing production. In response to Counoiilmember WeiVnd's question, Assistant City Manager Jurjis expressed an interest in staying on track with the schedule and engaging with property owners about height discussions after V November election. Councilmember Weigand thought that Newport Center is a focal point and needs to be master -planned. Councilmember Blom thanked staff, opposed placing caps in the airport area and Newport Center, supported development where the natural curve exists and protecting neighborhoods, and thought height is the only way to be in compliance with the State and constraints add obstacles to move forward. Additionally, he noted that the City has its own caps with land costs and willing developers. Councilmember Kleiman thanked staff. Councilmember Avery appreciated the work that has been done on this and the residents should be thankful, and thought the City needs to meet the deadlines. In response to his questions, Assistant City Manager Jurjis stated there is interest from property owners, projected a minimum of 20-years for a full build -out, and noted that the Land Use and zoning overlays are not yet adopted. Councilmember Avery concurred with Mayor Blom's interest in protecting neighborhoods, expressed concern for the rate of change, and supported the long timeline. Councilmember Grant summarized her understanding of a Citywide sunset provision once the RHNA units are met and questioned the approach for capping individual areas. Assistant City Manager Jurjis relayed the direction from the Housing Committee and Council to accommodate a maximum number of units for total build -out, excluding density bonus. He stated that staff will need to provide further direction to staff if Council wants to change the total build -out. Volume 66 - Page 39 City of Newport Beach City Council Meeting February 13, 2024 ILIA V. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS Laura Curran announced that the Navigator is available and highlighted that there will be a tour of the native plants at the Civic Center Park on April 11, 2024. She also stated that Sherman Gardens is having a Native Plant Day on April 21, 2024, and there will be a garden tour on May 5, 2024. An unidentified speaker inquired about the process for changing ordinances and opening a homeless shelter in the City since all the shelters are currently full. Mayor O'Neill directed questions regarding City ordinance changes to the City Attorney and suggested reviewing past discussions regarding City homeless shelter efforts. Jim Mosher clarified that he suggested a Citywide "off -switch" once the airport area developed all of the required RHNA. He also suggested increased oversight of the organic waste diversion from landfills because he found it unlikely that the three -cart program is reaching a 91% diversion. Councilmember Grant recused herself from Closed of bias. CLOSED SESSION - After Study Session - Council C A. CONFERENCE WITH REAL PROPERTY NEGOTL (Government Code § 54956.8): 1 matter Property: 883 W Item IV.A to avoid an appearance 15th Street, Newport Beac)A APN ference Room 424-011-37. City Negotiators: Seimone Jurjis, Assistant City Manager, and Lauren Wooding Whitlinger, Real Property Administrator. �- Negotiating Parties: David Bahnsen for Pacifica Christian High School - Orange County. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. RECESSED - 5:06 puk. VI. RECONVENED AT 5:30 P.M. FOR REGULAR MEETING VII. ROLL CALL Wr Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Brad Avery, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand VIII. CLOSED SESSION REPORT City Attorney Harp announced that no reportable actions were taken. IX. INVOCATION - Reverend Matthew Hambrick, First United Methodist Church of Costa Mesa X. PLEDGE OF ALLEGIANCE - Councilmember Weigand XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Volume 66 - Page 40 City of Newport Beach City Council Meeting February 13, 2024 Councilmember Kleiman: • Congratulated the Newport Beach Fire Department for receiving the Insurance Services Office (ISO) Class 1 Rating • Attended the Junior Lifeguard building beam signing, the Police Department promotional and swearing -in ceremony, Southern California Association of Governments (SCAG) Regional Council and Policy meetings, and UCI's Countering Hate Summit Councilmember Avery: • Attended the Police Department promotional and swearing -in ceremony Councilmember Grant: • Thanked staff for their work on the Planning Session, thanked the Airport Working Group and mentioned their annual meeting • Attended the Eastbluff Homeowners Association meeting with Mayor O'Neill, Mayor Pro Tem Stapleton, and Councilmember Kleiman, UCI's Countering Hate Summit, the beam signing at the Junior Lifeguard building, a Lunar New Year event at the Nixon Library with other elected officials, and the Police Department promotional and swearing-' eremony Mayor Pro Tem Stapleton: • Thanked Meghan McNulty of the Newport Beach Arts Foundatiok for hosting an event he attended • Attended a Washington DC lobbying trip with Public Work Director Webb • Announced that applications are available for the Newport Beach Foundation's Distinguished Citizen Program • Attended UCI's Countering Hate Summit and," Juni guard building beam signing Mayor O'Neill: • Attended the Rotary Club and Friends of OASIS meetings • Requested future agenda item to consider forming a Council ad hoc committee to negotiate the terms of the Visit Newport Beach contract for destination marketing services XIII. MATTERS WHICH COUNCILMEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) • Consider adopting an ordinance that bans the sale and distribution of kratom in the City of Newport Beach [Councilmember Kleiman] The City Council unanimously concurred to bring the matter back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR - None XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 23, 2024 City Council Meeting Waive reading of subject minutes, approve as written, 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. ORDINANCES FOR ADOPTION 3. Ordinance Nos. 2024-2 and 2024-3: Approving the Baldwin & Sons Medical Office at 20 Corporate Plaza (PA2022-0158) (C-9502-1) Volume 66 - Page 41 City of Newport Beach City Council Meeting February 13, 2024 a) Find adoption of the ordinances is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15303, Class 3 (New Construction or Conversions of Small Structures) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because the Class 3 exemption includes the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. The exemption also includes additions of up to 10,000 square feet to an office within an urbanized area on sites zoned for such use if not using a significant amount of hazardous substances, all necessary public services are available, and the surrounding area is not environmentally sensitive; b) Conduct second reading and adopt Ordinance No. 2024-2, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to the Corporate Plaza Planned Community Development Plan (PC-17) for a Medical Office Located at 20 Corporate Plaza (PA2022-0158); and c) Conduct second reading and adopt Ordinance No. 2024-3, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Development Agreement for a Medical Office Located at 20 Corporate Plaza (PA2022-0158). RESOLUTION FOR ADOPTION 4. Pulled from the Consent Calendar CONTRACTS AND AGREEMENTS 5. Slurry Seal Program (FY 2022-23 and FY 2023-24) —Award of Contract No. 9380-1 (241104) 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) of 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. 9380-1 to Roy Allan Slurry Seal, Inc. for the total bid price of $2,529,419 for the Slurry Seal Program (FY 2022-23 and FY 2023-24), and authorize the Mayor and City Clerk to execute the contract; and W& d) Establish a contingency of $253,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract. 6. Approval of Amendment No. Four to Professional Services Agreement with NV5, Inc. for Construction Support Services for Assessment District 124 (Central Balboa Island) (C-8627-2) a) Acknowledge the project is exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302 (d) (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it will not have an adverse effect on the environment; and b) Approve Amendment No. Four to the Professional Services Agreement with NV5, Inc., for construction support services for Assessment District 124 Phase 1 for an additional not -to -exceed amount of $272,190 for a total not -to -exceed amount of $567,847 and authorize the Mayor and City Clerk to execute the amendment. Councilmember Blom recused himself from Item 6 due to real property interest conflicts. 7. Approval of an On -Call Maintenance and Repair Services Agreement with Cal Building Systems, Inc. for Fire Systems Maintenance, Repair, and Inspection Services (C-7110-3) 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 Services agreement with Cal Building Systems, Inc. for fire systems maintenance, repair, and inspections for a five-year term and a total not -to -exceed amount of $335,000 and authorize the Mayor and City Clerk to execute the agreement. Volume 66 - Page 42 City of Newport Beach City Council Meeting February 13, 2024 8. Approval of Professional Services Agreement with Moffat & Nichol for Newport Harbor Seawall Replacement I Rehabilitation Design (C-9503-1) a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly, and b) Approve a Professional Services Agreement with Moffatt & Nichol for design services of the Newport Harbor Seawall Replacement / Rehabilitation Project for a total not -to -exceed amount of $448,803, and authorize the Mayor and City Clerk to execute the Agreement. 9. OASIS Senior Center Site Lighting Project — Award of Contract No. 9009-2 (23F02) a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(a), Class 1 (Interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances) of 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) Relieve Innovative Engineering Systems, dba Agilitech of its bid due to a clerical error; d) Award Contract No. 9009-2 to SacTown Contractors Corporation for the total bid price of $365,795 for the OASIS Senior Center Site Lighting project, and authorize the Mayor and City Clerk to execute the contract; and e) Establish a contingency of $54,205 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract. 10. Recreation and Senior Services Management Software 49tem for Class Registration, Membership, Point of Sale, and Facility Reservation Services (C-9514-1) 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 Mayor and City Clerk to execute agreement for a five-year term for Software for Class Registration, Membership, Point of Sale, and Facility Reservation Services to ActiveNet in the amount of $320,000; and c) Approve Budget Amendment No. 24-049 to appropriate $64,000 in increased expenditure appropriations for tke annual subscription fee and $120,000 in increased revenue projections from lower transaction fees. 11. Modifications to 20A Pierce Aerial Ladder Truck with Pump 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 a sole source Purchase Order with Pierce Manufacturing, Inc. for the vehicle modifications of Truck 63 for a total cost of $378,205.41, and authorize the City's Finance Director to issue the Purchase Order; and c) Approve Budget Amendment No. 24-050 appropriating $378,205.41 in increased expenditures in Account 7529032-911020 from the General Fund balance. 12. Pulled from the Consent Calendar Motion by Mayor Pro Tem Stapleton, seconded by Councilmember Blom, to approve the Consent Calendar, except the items removed (Items 4 and 12); and noting the recusal by Councilmember Blom to Item 6. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. Resolution No. 2024-8: Resolution of Intention to Disestablish the Newport Beach Tourism Business Improvement District and Fixing the Time and Place of a Public Hearing Volume 66 - Page 43 City of Newport Beach City Council Meeting February 13, 2024 Mayor O'Neill stated that an audit from the State of California resulted from poor oversight and tourism spending in Anaheim, suggested that staff look at the auditor checklist for compliance, and questioned what the new organization is and how it will interact with the organization that receives taxpayer money. He discussed Newport Beach and Company (NB & Co.) and Visit Newport Beach (VNB), funding, executive board placement and compensation, and noted that $2.9 million of the City's tax money is spent without the City's management. He questioned if the new organization is standalone or administered by a taxpayer organization with oversight. In response, City Attorney Harp explained that the new organization is going to be a nonprofit, private organization, with voluntary membership among different hotels in the City who will collect their own funding without the City being involved. He suspected there will be some overlap with the entities receiving taxpayer dollars. In response to Councilmember Weigand's questions, City Attorney Harp stated that it has been made clear to the new organization, and they have been put on notice, that charges on hotel bills cannot be presented in a way that the consumer believes the charges on the bills are City fees or taxes and the private organization has been directed to consult with their own legal counsel. He indicated that there will be no oversight by the City, altlAigh he thought the organization would provide the City with a copy of the format of the bills upon request to ensure that the charges do not look like City fees or taxes. i In response to Mayor O'Neill's question, City Attorney Harp clarified that audit rights exist until the end of 2024 for the VNB owner's association that manages the Tourism Business Improvement District (TBID). In response to Councilmember Grant's question, City Attorney Harp stated that the Meeting Assessment Partnership (MAP) is its own entity and suspects there will be an overlap with existing entities who are performing the same tasks. She expressed concern for diluting the money being paid by the City. City Attorney Harp restated Mayor O'Neill's interest in forming a Council ad hoc committee to look at the agreement terms to ensure the money is being appropriately spent. Mayor O'Neill stated that VNB exists solely to market Newport Beach and expressed concern for administrative costs, indicated he had no problem moving forward with Item 4 but thought the questions were worth asking and answers need to be found out. He added that it would be a problem if the City were to pay for overhead when the nonprofit is not. Jim Mosher noted that'MAP members are being allowed to continue to use the "TBID" term on guest folios, discussed the motivation for being part of the TBID, and expressed concern for transferred TBID funds. Laura Curran announced there will be a public hearing on this matter on March 26, 2024, urged Council to review the finances, and asked what will happen with the 3% annual assessment. Gary Sherwin, President and CEO of VNB, stated that TBID was created for the purpose of group marketing efforts and sunsets at the end of January. He noted there was a meeting with hotels to brainstorm about what to do with TBID upon its expiration and relayed that the decision was to have contracts that replicated TBID, list the fee as a tourism marking fee that would get passed through the consumer to VNB, and have governance by the assessed businesses. In response to Mayor O'Neill's questions, Mr. Sherwin explained that MAP contracts with VNB to provide services for group marketing, VNB is the management entity for MAP, charges allocated to MAP are for group sales efforts, and the TBID will be the same as it has always been. He relayed the reasons why the City does not have oversight over the TBID and noted that the governance of MAP is reliant on the hotels that fund it and the contract is with NB & Co. that receives $2.9 million from the VNB. He clarified that the TBID if for group marketing and the Transient Occupancy Tax (TOT) is for overall marketing, stated TBID's sole focus was to enhance group marketing, relayed no specific amount is charged to NB & Co. for MAP services because the costs are contained within MAP, and disclosed he will not have an employment agreement with MAP because MAP contracts with NB & Co. He added that the initiative was driven by the hotel community and its ownership Volume 66 - Page 44 City of Newport Beach City Council Meeting February 13, 2024 and noted that the upside to the arrangement is that there would be additional marketing dollars to create more TOT. Councilmember Kleiman acknowledged procedural inconsistencies and thought a more in-depth conversation was needed. In response to Mayor O'Neill's question about whether the TBID had any assets, City Attorney Harp responded that he had been informed that the remaining TBID money was already transferred to the new nonprofit MAP and that VNB represented that no assets remain. He also noted the City contracts with VNB to be the owner's association and manage the TBID operations, and the City does not approve VNB transactions. He then stated that he thought it would be good to ask Mr. Sherwin about the transfer of assets between VNB and the MAP. In response to Mayor Pro Tem Stapleton's question, City Attorney Harp stated that it was his understanding the TBID money had been transferred to the MAP and that there are no TBID assets or obligations. Mr. Sherwin relayed that VNB is following the State statute, the hotels came up with programming to liquidate the remaining TBID funds, note*the unused funding will be returned to the assessed businesses proportionally, there will be no commingling of funds with MAP, and it is expected that no assets or liabilities will remain w*the program finishes. In response to Councilmember Weigand's question, MNherwin relayed that it is probable that the wording "tourism marketing fee" will be the language used to represent the 5% service fee on the bills of MAP hotels. In response to Councilmember Grant's questions, City Attorney Harp stated that the TBID board reported there were no remaining assets and debt. Mr. Sherwin indicated that the funds had not been transferred to the MAP and there are still monies in the TBID fund, which will remain there until they are all used or are distributed back to the owners. City Attorney Harp suggested removing the item from the agenda to meet with Mr. Sherwin because it was unclear from Mr. Sherwin's state�ts if the TBID had any remaining assets. In response to Mayor O'Neill's stion, City Attorney Harp relayed that, after hearing from Mr. Sherwin, he does of think th esolution is consistent and thought it might be best to find out what is happening with the funds efore moving forward. Mr. Sherwin relayed that the remaining TBID budget is encumbered and accounted for, and MAP money will kick in once TBID is gone. City Attorney Harp noted two paths to handling the remaining TBID money per State law and stated that the responsibility to comply with the law lies with VNB. He also stated that because the TBID is now expired, the City Council has the option of not doing anything and letting State law control how any assets are distributed. Councilmember Grant extended a vote of confidence to Mr. Sherwin and his organization, and expressed an interest in being clear on the terms of the vote. Mayor Pro Tem Stapleton asked City Attorney Harp to clarify whether Council has the option to do nothing tonight and VNB is responsible because the TBID is expired. City Attorney Harp stated that the City could do nothing and it may best to take no action. Motion by Mayor O'Neill, seconded by Councilmember Avery, to table the item to a future meeting if needed. The motion carried unanimously. 12. Professional Services Agreement with PATH for Homeless Outreach Services (C-9515-1) Volume 66 - Page 45 City of Newport Beach City Council Meeting February 13, 2024 Councilmember Kleiman stated she was encouraged that the City would engage with a new partner to address gaps, but suggested pairing the agreement back to a one-year term with the option for two subsequent one-year extensions. In response to City Manager Leung, Melanie McQueen, Regional Director of PATH, agreed in principle to Councilmember Kleiman's amended terms. Councilmember Kleiman stated the reason for the requested change is to allow the City to have a checkpoint and revisit the scope of work at the end of the one-year mark. She indicated she is not insinuating there are anticipated issues. In response to Mayor O'Neill's question, City Attorney Harp suggested giving general authority to the City Attorney's Office to make the modification consistent with the proposed terms. Councilmember Grant expressed appreciation for staff and the new partnership, and relayed a fluid process. Melanie Martin requested greater accountability for safety during the time between when the information is about the unhoused and their place t. lik Mayor O'Neill pointed out that there will also be ensaiion changes resulting from the term changes. Motion by Councilmember Kleiman, seconded by Councilmember Weigand, 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 an amended Professional Services Agreement with PATH for Homeless Outreach Services that reflects a change to the term of the agreement to a one-year term with an option for two one-year extensions and a change in compensation to reflect the modified term and any other necessary changes related, thereto, as approved by the City Attorney, and authorize the Mayor and City Clerk to execute the agreement. The motion carried unanimously. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jessie Fleming requested protection for her neighborhood, stated she lives on a boat and acts as the eyes and ears on the Harbor, noted an upcoming proposal to increase the mooring fee by 400%, and asked Council to be fair so everyone can work together to support the Harbor. Kelsey McCallister provided a handout, relayed the story of Wanda the Whale, and sought the Council's guidance on how to commemorate Wanda. Chris Benzen expressed concern that there are different mooring fee rates for the same submerged tidelands use, shared mooring fee increases, and suggested passing a resolution to use the State Lands Commission's rates. Adam Leverenz reviewed the Brown Act and provided his interpretation, expressed concern for the lack of Council's attendance at the Harbor Commission's special meeting, and encouraged Council to attend the upcoming meeting or listen to the public comments and presentation to collect all the facts. Cathy Gilbert extended an invitation to attend the Love Newport Leaders Gathering in the Friends Room on February 29, 2024 at noon, provided a handout, and noted that a group prays at the Civic Center on Thursdays regularly and prays for the Council. Mike Fleming expressed concern for mooring fee increases. Volume 66 - Page 46 City of Newport Beach City Council Meeting February 13, 2024 An unidentified speaker thanked the community, staff, and Council for their support since she has been on the street. Jim Mosher announced that the public poll is open for the next phase of the sculpture gardens and can be found on the City's website. Nancy Scarbrough shared a description of the Fire Department's Class 1 Rating and benefits, suggested codifying it in a Council policy, and thanked the community, staff, the City Council, City Manager, and Fire Department for their service to achieve this goal. XVIII. PUBLIC HEARINGS 13. Ordinance No. 2024-4: Termination of Development Agreement No. 2008-005 for Sober Living by the Sea, Inc. dba Sierra by the Sea, Inc. Zoning and Public Benefit Agreement (PA2008-199) (C-4145) Mayor O'Neill opened the public hearing. Laura Curran asked if the City would lose the ability to enforce ordinances related to Sober Living by the Sea or other unlicensed sober living homes r a similar agreement. Hearing no further testimony, Mayor O'Neill Closer ose the earing. Assistant City Manager Jurjis clarified the terms of the aleement and allowances pursuant to State law. In response to Councilmember Grant's question, City Attorney Harp stated that the City is not giving up any of its authority, and confirmed that Sober Living by the Sea always had the right to have six or under facilities and has requ sted to terminate extra rights. r In response to Councilmember Avery's q stion, Assistant City Manager Jurjis indicated that the property is not transferring with the terAkation. Councilmember Kleiman relayed that the operator had the ability to transfer or sell the entity, but opted not to do so. Motion by Councilmember Kleiman, seconded by Mayor Pro Tem Stapleton, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Existing Facilities of the CEQA Guidelines. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment, and it is not subject to CEQA; and b) waive full reading, direct the City Clark to read by title only, introduce Ordinance No. 2024-4, An Ordinance of the City Council of the City of Newport Beach, California, Approving the Termination of Development Agreement No. 2008-005 (Zoning Implementation and Public Benefit Agreement Between the City of Newport Beach and Sober Living by the Sea, Inc.) (PA2008-199), and pass to second reading on February 27, 2024. The motion carried unanimously. 14. Resolution No. 2024-9: Intent to Override Orange County Airport Land Use Commission's Determination of Inconsistency for the Residences at 1400 Bristol Street (PA2022-0296) Mayor O'Neill opened the public hearing. Jim Mosher expressed an interest in learning the City's liability consequences from overriding the decision of the Airport Land Use Commission, highlighted Condition of Approval No. 50, and cautioned Council to not override the Commission's decision that it is not a compatible use. Volume 66 - Page 47 City of Newport Beach City Council Meeting February 13, 2024 Hearing no further testimony, Mayor O'Neill closed the public hearing. Motion by Councilmember Weigand, seconded by Councilmember Grant, to a) find that the proposed overriding action is not subject to 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 because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2024-9, A Resolution of the City Council of the City of Newport Beach, California, Notifying the Orange County Airport Land Use Commission and State Department of Transportation, Aeronautics Program of the City's Intention to Find that the Residences at 1400 Bristol Project is Consistent with the Purpose of the State Aeronautics Act and Overrule the Orange County Airport Land Use Commission's Determination that the Project is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (PA2022-0296). The motion carried unanimously. 15. Resolution No. 2024-10: Intent to Override Orange County Airport Land Use Commission's Finding of Inconsistency for the Residences of 1401 Quail Street (PA2023- 0040) Mayor O' 'Neill opened the public hearing. The ng n er testimony, he closed the public hearing. Motion by Councilmember Weigand, seconded by Councilmember Grant, to a) find that the proposed overriding action is not subject to 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 because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2024-10, A Resolution of the City Council of the City of Newport Beach, California, Notifying the Orange County Airport Land Use Commission and State Departmenjof Transportation, Aeronautics Program of the City's Intention to Find that the Residences at 147M Quail Project is Consistent with the Purpose of the State Aeronautics Act and Overrule the Orange County Airport Land Use Commission's Determination that the Project is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (PA2023- 0040). 1wor The motion carried unanimously. XIX. MOTION FOR RECONSIDERATION - None XX. ADJOURNMENT - Adjourned at 7:17 p.m. in memory of Helen "Jerri" Dwan 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 February 8, 2024, at 4:00 p.m. Will O'Neill Mayor Leilani I. Brown City Clerk Volume 66 - Page 48