HomeMy WebLinkAbout01 - MinutesJune 11, 2024
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Special Joint Meeting with the Finance Committee
May 28, 2024
I. CALL MEETING TO ORDER - 4:00 p.m.
II. ROLL CALL
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, Finance Committee Member Allen Cashion, Finance
Committee Member Nancy Scarbrough
Excused: Finance Committee Member William Collopy, Finance Committee Member Keith Curry
III. PRESENTATION A
• Proclamation Recognizing Temple Bat Yahm 112�
Mayor O'Neill read the proclamation and presented it to Rabbi*Gersh Zylberman, Rabbi Miriam
Philips, Cantor Jonathan Grant, Cantor Elisa Waltzman, Executive Director Sue Penn, President
Adrienne Cohen, 1st Vice President Matt Cabrera, and other congregation members who shared the
history on the naming of Jewish people and gave thanks to Mayor O'Neill and Councilmember Grant
for their support and encouragement, the Newport Beach Police Department for providing safety,
neighbors of many faiths, founders of Temple Bat Yahm, and God for the opportunity to celebrate
their 50th anniversary milestone. do
IV. CURRENT BUSINESS
1. Review of the Proposed scal Year \2241-Wperating Budget
Finance Director Al -Imam and Acting Deputy Finance Director Burguan utilized a presentation to
review the principles guiding the budget development, opportunities for public review, summary of
all expenditure funds, major fund operating expenditures, general fund revenues and expenditures,
primary reasons for a 3.9% General Fund budget growth, program enhancements, key General Fund
program enhancements, non -personnel program enhancements, proposed additional staffing
changes, changes in total staffing since 2009, General Fund sources and uses, recent changes to the
City's pension liability, historical investment, and City's funded status.
Mayor O'Neill expressed the importance of effectively managing the unfunded pension liability. In
response to his question, Finance Director Al -Imam stated that Ca1PERS is currently at 8.9%.
Finance Director Al -Imam continued the presentation and reviewed the employee count, the
retirement tiers, and the pension liability paydown strategy.
Mayor Pro Tem Stapleton thanked the Finance Committee and staff for their work.
Councilmember Grant stated she looks forward to a future Council announcing a fully funded
budget and expressed appreciation for the work done on this matter.
Mayor O'Neill pointed out that, upon being paid off, the unfunded pension liability amount will
become part of the budget.
In response to Councilmember Weigand's question, Recreation and Senior Services Director Levin
explained that the City's preschool programs will be moved, run as a camp in the summer, expressed
support for the contractors who will be running the program, and noted that the part-time hours
will be given back to the budget.
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City of Newport Beach
Special Joint Meeting with the Finance Committee
May 28, 2024
Councilmember Avery noted the ups and downs on the graph and predicted the same will occur in
the future, commended Mayor O'Neill's leadership, emphasized a conservative approach to continue
to get the City through inevitable tough spots, and acknowledged the large responsibility of
developing sound financial practices to continue providing public services. He expressed being
fortunate to be on Council during this period.
Finance Committee Member Scarbrough expressed appreciation for the City's leadership and
thought the City's finances were going in a the right direction.
Jim Mosher inquired about performance metrics and departmental goals, and noted the challenge
with understanding the reasoning for fund placement in the budget, especially the Internal Service
Funds.
Mayor O'Neill announced the next steps and thanked citizen members of the Finance Committee,
Mayor Pro Tem Stapleton, Councilmember Blom, and staff.
IV. PUBLIC COMMENTS — None
V. ADJOURNMENT — 4:40 p.m.
The special 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
May 23, 2024, at 4:00 p.m.
A0
Leilani I. Brown
City Clerk
Will O'Neill
Mayor
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CITY OF NEWPORT BEACH
City Council Meeting Minutes
Study Session and Regular Meeting
May 28, 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. Review of the Proposed Fiscal Year 2024-25 Capirl Improvement Program Budget
Councilmember Kleiman announced she would be recusing herself from discussions
regarding the Shore Cliffs Community Water System Improvements Project, Balboa
Island Water Main Replacement, and Landscape - East Coast Highway due to real
property interest conflicts.
Due to real property interest conflicts, Councilmember Blom announced he would be
recusing himself from discussions regarding Assessment District Nos. 120 and 124, the
Balboa Island Water Main Replacement and Shore Cliffs Community Water System
Improvement Projects, Balboa Island Drainage and Pump Station Improvements, West
Irvine Terrace Main Water Replacements, Peninsula Tide Gate Improvement Project,
and Santa Ana/San Bernar ino Avenues Streets and Drainage due to real property
interest conflicts.
Public Works Director Webb and Deputy Public Works Director Houlihan utilized a presentation
to discuss the Capital Improvement Program (CIP) for fiscal years 2024-25 through 2029-30,
and highlight the 2023-24 CIP projects.
Mayor O'Neill expressed his appreciation to the Public Works Department for all their hard
work.
Deputy Public Works Director Houlihan utilized a presentation to highlight the proposed 2024-
25 CIP list, the CIP budget by category, and CIP budget summary.
Public Works Director Webb thanked Council for being supportive and Public Works
Finance/Administrative Manager Schweitzer for putting the program together.
Jim Mosher suggested an improvement to the parking and public tidelands access at the Bayside
Drive viewpoint, inquired if there is enough money in the budget to successfully complete the
General Plan Update, and thought the Noise Element should be accounted for in the budget.
In response to Mayor O'Neill's question, City Manager Leung confirmed that funding is
available to complete the General Plan Update.
SS3. Public Safety Technology Ad Hoc Committee Results
Mayor O'Neill announced that the Ad Hoc Technology Implementation and Integration
Committee included himself, Mayor Pro Tem Stapleton, and Councilmember Kleiman.
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Police Chief Cartwright and Deputy Police Chief Aguilar discussed the background and utilized
a presentation to discuss the reasons for looking into public safety technology, proposed
technology platforms, the Crime Information Center (CIC) two-part mission and three key
components, Flock cameras, crime prevention and elimination, privacy protection with
Automatic License Plate Reader (ALPR) technology and existing Flock cameras. Furthermore,
he played a video to demonstrate the FususONE platform which highlighted the cloud -based
real-time crime center map interface and how it works. He reported that the Ad Hoc Committee
is considering developing a drone program and policy. In closing, the pending issue for discussion
was to extend or make permanent the City's Flock Camera homeowners association pilot
program which will be expiring on September 20, 2024.
Mayor O'Neill relayed that a drone policy was created by the Ad Hoc Committee to be
implemented once a drone program is developed, a Flock camera policy is in progress, and
advocated for making the homeowners association program permanent.
Councilmember Kleiman expressed her gratitude to the Newport Beach Police Department
(NBPD) and Lt. Morouse for providing an opportunity for the Ad Hoc Committee to view the
Beverly Hills crime center, and advocated for addition* tools for the NBPD.
Mayor Pro Tem Stapleton expressed support fo roviding the NBPD with the best technology
and resources, appreciated the opportunity t erve the Beverly Hills CIC, and stated he
supported using Flock cameras. 0,
Councilmember Weigand expressed appreciation to the Ad Hoc Committee and NBPD and, in
response to his question about priorities, Police Chief Cartwright reported that the proposed
technology platforms work in concert and the drone program is the last piece. He explained that
Fusus can tap into private Ring and Nest systems. Additionally, Deputy Police Chief Aguilar
noted that criminals target areas without technology and thought that having this technology
is the first step for crime prevention and necessary for public safety. Councilmember Weigand
supported the permanent use of Flock cameras by homeowner associations.
Mayor O'Neill clarified that residents need to opt -in for Fusus to access private Ring and Nest
systems. He noted that the first three items (CIC, Flock, and Fusus) are in the proposed budget,
need contracts, and can be implemented in the next fiscal year, and received a description of the
roles of the additional civilian staff in the CIC dispatch area from Police Chief Cartwright.
Jim Mosher thought the emails received from the public for this item were pertaining to the
City Council adopting,,a private drone program rather than the police drones, and suggested an
overarching policy be formed that supports a crime fighting tool but prohibits tracking residents'
daily activity.
Adam Leverenz suggested conducting an analysis to assess staffing needs associated with using
70 ALPRs.
In response to Mayor O'Neill's question, Police Chief Cartwright confirmed that he has no
intention of asking for fewer police officers after implementing ALPRs.
Councilmember Weigand expressed interest in blocking the use of data for personal requests.
In response, Police Chief Cartwright clarified that the City cannot perform unreasonable
searches and seizures as outlined by the 4th Amendment and data will not be provided by
personal request without a Public Records Act Request (PRAR). Mayor O'Neill reviewed the
analysis and policy to address the proper collection and use of data.
Councilmember Blom discussed the data being subject to PRARs and the amount of staff time
needed to sift through data for personal use, supported crime prevention and tools, and
expressed concern for too much data collection. Mayor O'Neill acknowledged the privacy
concerns.
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WA
u
►•n
The straw vote to return to a future Council meeting to make the homeowner association Flock
camera program permanent was unanimous.
PUBLIC COMMENTS — None
CLOSED SESSION — Council Chambers Conference Room
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 2 matters
1. Agency Designated Representatives: Grace K. Leung, City Manager, and Barbara Salvini,
Human Resources Director.
Employee Organizations: Association of Newport Beach Ocean Lifeguards; Newport Beach
City Employees Association; Newport Beach Employees League; Newport Beach Firefighters
Association; Newport Beach Fire Management Association; Newport Beach Lifeguard
Management Association; Newport Beach Police Association; Newport Beach Police
Management Association; Newport Beach Profession nd Technical Employees Association;
and Part Time Employees Association of Newport Be
2. Agency Designated Representatives:
Tem.
id Joe Stapleton, Mayor Pro
Unrepresented Employees: All unrepresentedlemployees (including all employees in the Key
and Management Group), except for the C' anager, City Attorney and City Clerk.
RECESSED — 5:31 p.m.
RECONVENED AT 6:15 P.M. FOR RZWULAR MEETING
VII. ROLL CALL �10
Present: Mayor Will O'Neill, Mayor Pr em Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Counci ember Robyn Grant, Councilmember Lauren Kleiman,
Councilmember Erik Weigand
VIII. CLOSED SESSION REPORT
Assistant City Attorney Summlhill announced that no reportable actions were taken.
IX. INVOCATION — Pastor Russell Lackey, Lutheran Church of the Master
X. PLEDGE OF ALLEGIANCE — Councilmember Grant
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Councilmember Weigand:
• Announced that he will be traveling with Councilmember Grant to Japan for a Sister City event and
reported for the record that both he and Councilmember Grant are using their personal resources
for the trip
Councilmember Grant:
• Along with other Councilmembers, attended the Exchange Club of Newport Harbor's Memorial Day
celebration at the Field of Honor in Castaways Park
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Mayor Pro Tem Stapleton:
• Attended Leadership Tomorrow's government day class as a speaker, the Love Newport opening
party, Public Works Touch -a -Truck event, the Newport Coast pickleball court opening, the Newport
Beach Chamber of Commerce's 62nd Athletic Awards, Newport Harbor High School's Memorial Day
Ceremony, and the Field of Honor event hosted by the Exchange Club of Newport Harbor
• Visited the Sunset Ridge Park bridge and parking lot
Mayor O'Neill:
• Spoke during Leadership Tomorrow's Mayor's Panel
• Attended the Balboa Island Art Walk awards ceremony and the Battle in the Bay water polo
matches at Marina Park
• Announced the Balboa Island Parade on June 2, 2024
XIII. MATTERS WHICH COUNCILMEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA (NON -DISCUSSION ITEM)
Request staff to provide an update on the implementation status of the 2014 City of
Newport Beach Bicycle Master Plan at a City Cou Study Session in the near future
[Mayor Pro Tem Stapleton]
The City Council unanimously concurred to bring
XIV. PUBLIC COMMENTS ON CONSENT CALENDAI
XV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
i future meeting.
1. Minutes for the May 14, 2024, 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.
CONTRACTS AND AGREEMENTS
3. Balboa Pier Maintenaarroject No. 24H09) - Notice of Completion for Contract
No. 9323-1
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
4. FY 2022-23 Traffic Signal Rehabilitation Project (Project No. 23T01) - Notice of
Completion for Contract No. 9095-1
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
5. Water Transmission Main Valve Replacement Phase 2 (Project No. 18W12) - Notice of
Completion for Contract No. 7539-3
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
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b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
6. 38th Street and Lake Avenue Landscape Improvement Project — Award of Contract
No. 9008-1 (24L01)
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15302(c), Class 2 (replacement of existing public facilities involving negligible or no
expansion of existing 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) Approve Budget Amendment No. 24-076 appropriating $152,041.70 in increased expenditures
in Account No. 16701-980000-24L01 from the Oceanfront Encroachment Fund unappropriated
fund balance;
d) Award Contract No. 9008-1 to S&H Civilworks for the total bid price of $193,067 for the
381h Street and Lake Avenue Landscape Improvements project, and authorize the Mayor and
City Clerk to execute the contract; and
e) Establish a contingency of $29,000 (approximately % of total bid) to cover the cost of
unforeseen work not included in the original contract
7. Pulled from the Consent Calendar 6
8. Irrigation Controllers Replacement — Award of Contract No. 9527-1
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) Award Contract No. 9527-1 to American Landscape, Inc. for the total bid price of $729,950 for
the replacement of 59 irrigation controllers, and authorize the Mayor and City Clerk to execute
the agreement; and -
c) Establish a contingency of $36,500 (approximately 5% of total bid) to cover the cost of unforeseen
work not included in the original contract.
9. General Liability Third Party Administrator — Approval of Professional Services
Agreement with AdminSure, Inc. (C-8179-2)
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sectiols 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 five-year Rrofessional Services Agreement with AdminSure, Inc. for Third Party
General Liability Claims Administration Services at a not -to -exceed amount of $673,228, and
authorize the Mayor and City Clerk to execute the Agreement.
10. Award and Approval of Purchase Agreement with Florence Marine X, LLC for
Junior Lifeguard Program Uniforms and Apparel (C-9622-1)
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 Purchase Agreement with Florence Marine X, LLC for Junior Lifeguard Uniform
Apparel for a not -to -exceed amount of $1,816,000, with a two-year initial term with three
additional, one-year extensions (for an approximate total five-year term), and authorize the
Mayor and City Clerk to execute the agreement.
MISCELLANEOUS
11. Planning Commission Agenda for the May 23, 2024 Meeting
Receive and file.
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12. Accept the 2021 Emergency Management Performance Grant
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) Accept the grant funding in the amount of $13,270 to be used in support of the City of Newport
Beach's emergency management program; and
c) Approve Budget Amendment No. 24-073 to accept grant funds from FEMA through the County
of Orange, increase revenue estimates by $13,270 in account 0103511-431250 and increase
expenditures appropriations by $13,270 in account 0103511-821005.
13. Accept the 2022 Emergency Management Performance Grant
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) Accept the grant funding in the amount of $14,269 to be used in support of the City of Newport
Beach's emergency management program; and
c) Approve Budget Amendment No. 24-074 to accept grant funds from FEMA through the County
of Orange, increase revenue estimates by $14,269 i)laccount 0103511-431250 and increase
expenditures appropriations by $14,269 in account 0103511-821005.
14. Annual Report and Renewal of the Military E me` t Use Policy for the Newport Beach
Police Department
a) Determine this action is exempt from the C nia 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) Receive and file the 2023 Annual Military Equipment Report; and
c) Renew the Military Equipment Use Policy for the Newport Beach Police Department, including
minor changes to the list of authorized munitions, as specified.
15. Fiscal Year 2023-24 Third Quarter Financial Report
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 changerto the environment, directly or indirectly;
b) Approve Budget Amendment No. 24-071, adjusting revenue estimates and expenditure
appropriations for the Fiscal Year 2023-24 budget as outlined in the report; and
c) Receive and file the report of budget amendments for the third quarter.
16. Set Public Hearing Date, to Adopt Fiscal Year 2024-2025 Budget
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) Schedule a public hearing of the City's Proposed Budget for Fiscal Year 2024-2025 for
June 11, 2024, and direct the City Clerk to publish a notice of said hearing in accordance with
Section 1102 of the Newport Beach Charter.
Motion by Mayor Pro Tern Stapleton, seconded by Councilmember Weigand, to approve the
Consent Calendar, except the item removed (Item 7); and noting the amendments to Item 1.
The motion carried unanimously.
XVI. ITEM REMOVED FROM THE CONSENT CALENDAR
7. Balboa Boulevard, Newport Boulevard, and 32nd Street Pavement Rehabilitation —
Award of Contract No. 8833-2 (22R11)
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In response to Councilmember Weigand's concern for the impact of the project during the summer
months, Public Works Director Webb explained the approach to prioritize the Newport Elementary
School area and return in September for the remaining areas.
Motion by Councilmember Weigand, seconded by Mayor Pro Tern Stapleton, to 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) approve Budget Amendment
No. 24-078 appropriating $42,000 in new revenue and expenditures from Orange County Sanitation
District to Account No. 13501-980000-22R11; d) award Contract No. 8833-2 to R.J. Noble Company
for the total bid price of $5,119,060 for the Balboa Boulevard, Newport Boulevard, and 32nd Street
Pavement Rehabilitation project, and authorize the Mayor and City Clerk to execute the contract;
and e) establish a contingency of $512,000 (approximately 10% of total bid) to cover the cost of
unforeseen work not included in the original contract.
Jim Mosher suggested informing the public of the types of pedestrian safety improvements being
proposed since it might be more applicable along Balboa Boklevard in the future.
Public Works Director Webb relayed the safety enh cements tAat are being planned.
The motion carried unanimously.
XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS r
George Hylkema discussed tideland fees in the Harbor and provided a handout.
Adam Leverenz noted he has not received a response to his inquiiy on whether yacht clubs will be
exempted from mooring holding fee increases or to see the Harbor Commission's recommendation they
will be making to Council, recited four reliable sources the City could use to evaluate mooring rates, and
asked that Council beco i informed about permit harbor rates.
Jim Mosher announced the Coffee with the Mayor event on May 31, 2024, from 9:00 a.m. to 11:00 a.m.
and inquired about the address.
Mayor O'Neill stated that the Coffee with the Mayor event will take place at the Starbucks at 377 East
Coast Highway.
XVIII. PUBLIC HEARING
17. Resolution No. 2024-32: Notice of Intent to Override Orange County Airport Land Use
Commission's Determination of Inconsistency for the City's Housing Element
Implementation Program Amendments (PA2022-0245)
Assistant City Manager Jurjis introduced Acting Deputy Community Development Director Murillo,
provided background, and indicated that, if Council approves the resolution, a notice will be sent to
the Airport Land Use Commission and staff will return to the July 23, 2024 City Council meeting
to hold a a public hearing and review the housing implementation documents.
Mayor O'Neill recognized and appreciated the work on this matter by staff and noted shared
concerns by the public and Council about the Regional Housing Needs Assessment (RHNA) process.
In response to Mayor O'Neill's question, Assistant City Attorney Summerhill relayed that
Huntington Beach was unsuccessful in challenging the State on the RHNA process. Councilmember
Grant added that other cities have also been unsuccessful.
Mayor O'Neill opened the public hearing.
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May 28, 2024
Jim Mosher stated his objection to the item, expressed concern for having housing by the airport,
and doubted Council's ability to make the finding that adding new housing would further the State's
effort to minimize the public's exposure to excessive noise and safety hazards.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Motion by Mayor O'Neill, seconded by Councilmember Blom, to a) find that the proposed
overriding action is not subject to the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a
physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2024-32, A
Resolution of the City Council of the City of Newport Beach, California, Notifying the Orange County
Airport Land Use Commission (ALUC) and State Division of Aeronautics Program of the City's
Intention to Find that Amendments to the General Plan, Coastal Land Use Plan, and Title 20
(Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the Newport
Beach Municipal Code Necessary to Implement the General Plan 6th Cycle Housing Element are
Consistent with the Purpose of the State Aeronautics Act and Overrule ALUC's Determination that
the Amendments are Inconsistent with the 2008 John Wayne Airport Land Use Plan (PA2022-0245).
The motion carried unanimously.
XIX. CURRENT BUSINESS & It
18.Ordinance No. 2024-14: Terminating a Non-Exclusiv r anchise Agreement for
Commercial Solid Waste ■
In response to Mayor O'Neill's request for an update since the last Council meeting, Senior
Management Analyst Springer stated that the hauler has not confirmed their voluntary rescinding
of the Tier 1 franchise agreement and that, a requested deliveiable of confirmation between the
client and hauler has not been received, and although correspondence with the commercial entity
has been confirmed, and recent efforts have been made, in relation to recission of Tier 1, no effort
has been made. He indicated that staff is not satisfied enough to justify maintaining the status.
Councilmember Weigand expressed an interest in resolving the matter promptly.
John Katangian, President of Key Disposal & Recycling, Inc., thanked Council for their time and
indicated he thought lie met the compliance requirements that are within his control.
In response to Mayor O'Neill's question, Mr. Katangian stated that the emails related to Tasks 3
and 4 were not included in the staff report and would prevent the termination. He noted that he
used the waste processing company that was recommended by staff despite having better facility
options, and took issue that staff stopped responding to him.
Shelline Katangian stated that she sent reports late due to the time constraint, met with the store
and finished Tasks 3 and 4 and sent them to staff on May 10, 2024, at 2:33 p.m. but received no
response, believed they went above and beyond for this one account, has completed all the requests,
and asked Council to review the information because she does not want to rescind their Tier 1
agreement.
In response to Mayor O'Neill's question, Assistant City Attorney Summerhill stated that adequate
evidence was available to terminate the agreement at this time. Senior Management Analyst
Springer noted compliance inconsistencies and clarified that the hauler has met the requirements
as per conversations with the client. Public Works Director Webb added that compliance should
have started at the time of signing the agreement but the City is just now getting what is needed,
expressed concern for confidence in the hauler, and noted the circumstances with the hauler being
a waste broker.
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Councilmember Grant noted a trust factor issue between the City and the hauler, the amount of
staff time to satisfy State mandates, voiced support for local businesses, and acknowledged the
costibenefit factors. Senior Management Analyst Springer noted the amount of staff time being
spent on this account.
Mayor O'Neill noted the penalties to the City for noncompliance. Senior Management Analyst
Springer stated that the State is aware of the City's efforts to gain compliance with the haulers, sees
the progress in gaining overall compliance, and noted that the enforcement actions to remedy
noncompliance items are becoming problematic.
Motion by Councilmember Blom, seconded by Councilmember Weigand, to a) determine
this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly; and b) waive full reading, direct the City Clerk to
read by title only, introduce Ordinance No. 2024-14, An Ordinance of the City Council of the City of
Newport Beach, California, Terminating a Non -Exclusive Franchise Agreement for Commercial
Solid Waste in its entirety, and pass to second reading on June 11, 2024.
The motion carried unanimously.
XX. MOTION FOR RECONSIDERATION - None
XXI. ADJOURNMENT - Adjourned at 7:02 p.m. in memory of Tom Phillips
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
May 23, 2024, at 4:00 p.m.
.UU11Ui11 1. iuruwll
City Clerk
k%W
Will O'Neill
Mayor
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