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HomeMy WebLinkAbout02/24/2015 - Study Session / Regular MeetingCity Council Minutes Study Session and Regular Meeting February 24, 2015 I. ROLL CALL - 4:00 p.m. Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar Regarding Item 3 (Massage Establishment Regulations), Council Member Curry asked whether staff has worked with hoteliers and day -spa establishments to obtain their input. City Manager Kiff affirmed and Deputy Police Chief McGill indicated that Lt. Short will respond further when he arrives. Council Member Petros referenced Mr. Mosher's written comments regarding Item 3 and asked why the Resolution is being brought forward now instead of with the second reading of the Ordinance. City Attorney Harp suggested continuing the Resolution until the second reading of the Ordinance. Regarding Items 8 (Request to Install Private Improvements within the Ocean Boulevard Public Right -of -Way at 3335 Ocean Boulevard) and 9 (Request to Retain Private Improvements within the Ocean Boulevard Public Right -of -Way at 3415 and 3425 Ocean Boulevard), Council Member Petros noted that there are requests being made in a larger context and asked why they are coming forward now instead of bundling with the overall project. Public Works Director Webb stated that a driveway replacement is being proposed as a separate encroachment and action, but he is not aware if the homeowners coordinated and, had staff known, they could have combined the items. In response to Mayor Selich's question regarding Item 9, Public Works Director Webb confirmed that the project is for a replacement wall. Council Member Petros stated that, if the owners knew their projects would be coming before Council at the same time, this could have been combined under one application and some accommodation could have been made so that plan checks and processing of the encroachment could have occurred all at once, with the possibility of reducing the fee burden to the residents and accelerating the project. He encouraged residents to bundle improvements if possible. SS2. Orange County Sanitation District (OCSD) - Newport Force Main Project (Mariner's Mile) Council Member Duffield recused himself from this item since he lives within 500 - feet of the project. Jim Herberg, OCSD General Manager, introduced the project, acknowledged disruptions, and addressed project needs. Rob Thompson, OCSD Director of Engineering, provided a PowerPoint presentation to address OCSD service areas, sewers in Newport Beach, the Newport Beach program map, attempts at minimizing impacts, schedules, mitigation measures, and community outreach. Volume 62 - Page 203 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Council Member Petros emphasized that this is a priority project for the City and commented on the various problems experienced thus far. He requested that OCSD ensure that Phase 1 is complete in May. Mr. Thompson reported that OCSD is committed to the schedule and estimated the likelihood that Phase 1 should be completed by May was 80% to 85 %. In response to Council Member Petros questions, he reported that K -rails will be taken up when Phase 1 is complete and a couple of lanes will be freed until Phase 2 begins. Discussion ensued regarding impacts through the coming year. Martin Dicks, OCSD Project Manager, commented on the work to be completed this year and addressed issues with tunneling. Council Member Petros listed the current challenges related to the project, noting that the project produces a systematic disruption of traffic in the City. In response to Mayor Pro Tom Dixon's question, Mr. Thompson addressed the schedule for the work to be done along Newport Boulevard and related impacts. Public Works Director Webb reported that staff will work closely with OCSD. W.R. Dildine reported that OCSD has worked closely with the merchants and commented on the problems when the traffic signals went out. He discussed the updated technology, pointed out the need for the project, and commented positively on OCSD's work. SS3. Transportation Corridor Agencies (TCA) - San Joaquin Hills Corridor Refinancing Amy Potter, TCA Chief Financial Officer, provided a PowerPoint presentation addressing the formation of the TCA, issuance of bonds, refinancing and restructuring, comparison of old and new debt structures, and the benefits of refinancing. SS4. Options for Regulation of Water Propelled Vessel Council Member Duffield recused himself from this item due to a potential business conflict. Harbor Resources Manager Miller introduced the item and deferred to Harbor Commissioner Kenney for a presentation. Harbor Commissioner Kenney provided a PowerPoint presentation to address the definition of water propelled vessel, background, issues, and public outreach. He provided videos of the different types of equipment, and he addressed the Ad -Hoc Committee's research and reconnaissance, space constraints in the Harbor, and Harbor Commission conclusions and recommendations. Harbor Resources Manager Miller presented details of the Mission Bay Model. In response to Council Member Petros' question, Harbor Commissioner Kenney reported on the number of people attending public outreach meetings. Volume 62 - Page 204 City of Newport Beach Study Session and Regular Meeting February 24, 2015 In response to Council Member Muldoon's question, Harbor Commissioner Kenney reported that, because of the amount of area required to operate, the Harbor Commission did not believe there is any appropriate place in the Harbor for water propelled vessels to operate and addressed space constraints in Newport Harbor. In response to Council questions regarding noise impacts, Harbor Resources Manager Miller reported that staff tried to measure potential noise impacts, but experienced scheduling conflicts. He added that Jetpack America has done a study, but staff has yet to conduct its own study. He noted that many of the complaints relative to jet propelled vehicles were related to noise. Jack Tingley, former Parks, Beaches and Recreation Commissioner, spoke in support of the Harbor Commission's recommendations and expressed concerns with public safety. Jim Mosher likened the operation with water skiing or parasailing, and spoke in support of the Harbor Commission's recommendations. Chris del Rey commented on his experience living by the beach and observing water propelled vessels. He did not feel that noise is a problem, stated that he tried it and enjoyed it, and believes that there is a lot of space in the Harbor. He added that the pilots are experienced and the equipment comes with a kill switch in case of an emergency. He believed that the problems are being exaggerated and commented on the safety and enjoyment of the operation. Raquel del Rey reported that safety is a prime concern and spoke in support of the water propelled vessel operation. Pam Whiteside expressed concern regarding noise, wakes, and safety. She spoke in support of the Harbor Commission's recommendations. In response to Council Member Petros' question regarding potential damage to boats by increased wakes, Harbor Resources Manager Miller stated that he has heard of complaints from the American Legion with concerns regarding wakes at their marina. Dean O'Malley, President of Jetpack America, believed that they have proven over the past years that they can operate a successful and safe business for their customers in the Harbor. He addressed safety, compliance with Harbor rules and regulations, measures to reduce noise, the creation of a Newport Beach operations plan, submission of a Marine Activities application, efforts at increasing tourism and supporting local businesses, and facilitated positive media exposure for the City. He pointed out that they were selected by the U.S. Coast Guard to help develop its nation -wide rules and regulations for commercial jet pack operators. Additionally, he stated that they have had no citations from the Harbor Patrol and noted that they have proven they can coexist in the water. In response to Council questions, Mr. O'Malley reported that the ocean is not a good location to train users and that transporting customers to the open ocean would not be viable. He reported that, if the operation is banned in the Harbor, they will need to shut down their operations in the City. He reported that the power unit is a jet ski that is four - stroke with between 3,000 and 5,000 RPMs. He indicated that they have served 5,000 customers in Newport Beach and, in the summer, they can service ten to fifteen people per day. He further provided their hours of operation. He confirmed that they have the ability to control the throttle and communicate with their customers throughout their flight. Volume 62 - Page 205 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Zach Funston, President of Mission Bay Sports Center, provided information regarding the organization and addressed the types of equipment and programs. He expressed support for Jetpack America and water propelled vessels. James Haas, U.S. Coast Guard Auxiliary District 11 Directorate Chief of Prevention, spoke on the regulations of jet pack operations and Jetpack America. Judy Cole expressed concerns with wakes, compared Mission Bay with Newport Harbor, and expressed support for the Harbor Commission recommendations. George Farah expressed concerns regarding increased noise, high speeds, and safety, and believed that it is very invasive. He spoke in support of the Harbor Commission recommendations. Chris Herman, yacht broker and boater, spoke in support of Jetpack America and believed that there is a way for all water - related activities to operate in the Harbor. He read a letter from a customer, Captain Ed, expressing his support for the operation. Billy Whitford, Executive Director of the Newport Aquatic Center, commented on the Jetpack America operation and expressed concerns regarding safety as it relates to privately operated water propelled vessels. Don Cole expressed concerns with safety, high speeds, and wakes. Eric Longabardi commented on requirements for private operations, including personal water crafts and a flying device. He noted that the equipment costs at least $20,000 and believed that the proliferation of personal operations is unlikely. City Manager Kiff reported that staff is seeking direction to craft an ordinance. In response to Council Member Petros' question, City Attorney Harp stated that Council may allow commercial operations and prohibit private operations. Mayor Pro Tem Dixon asked regarding limiting the number of commercial operations. City Attorney Harp indicated that the City can draft an ordinance that bans them unless they have an agreement with the City through a Request for Proposal (RFP) process. Council Member Curry thanked Harbor Commissioner Kenney and the Harbor Commission, He expressed concerns regarding the proliferation of related private activity and that the City should prohibit private use. He suggested considering a franchise that incorporates conditions and where there is a process of selecting a responsible operator. He added that he would like to find a way to allow the commercial operation while being cognizant of safety and other concerns. In response to Council Member Peotter's question, Harbor Resources Manager Miller reported that motorized vessels are allowed up to the Newport Aquatic Center (NAC), but would not recommend allowing the operation in the Back Bay. Council Member Peotter expressed support with Council Member Curry's suggestion. Council Member Muldoon agreed with prohibiting private crafts and expressed concern about having one operator consistently in one area. He expressed interest in learning about other acceptable areas and the potential rotation of areas. Volume 62 - Page 206 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Council Member Petros spoke in support of the Mission Bay model, the RFP process, and having one vendor to minimize the impacts. Mayor Pro Tom Dixon agreed with Council Member Petros' comments and suggested potential operation in Marina Park. She also expressed the desire to be sensitive to locations by rotating operational areas. Mayor Selich stated general agreement with the rest of Council and asked regarding regulating private uses. City Attorney Harp stated that it would be appropriate and legal to restrict private operations. Assistant City Attorney Torres commented on the need to make findings regarding compatibility with other uses based on health and safety. Harbor Resources Manager Miller noted that this is similar to the City prohibiting houseboats and floating planes in the Harbor. III. PUBLIC COMMENTS Jim Mosher spoke regarding Closed Session Item C, noting that there has been no public discussion on this matter and that the public should be privy to a public discussion regarding ownership of the slough. City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION — 5:49 p.m. A. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB). B. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (Government Code § 54956.9(a), (d)(1)): 2 matters Pacific Shores Properties, LLC, et al. v. City of Newport Beach Newport Coast Recovery, LLC, et al. v. City of Newport Beach United States District Court, Central District Case Nos. CV 08- 00457 -JVS (RNBx) & CV 09- 00701-JVX (RNBx) United States Court of Appeals, 91h Circuit Case Nos. 11 -55460 & 11.55461 Woody's Group, Inc. v. City of Newport Beach, et al. Orange County Superior Court Case No. 30- 2013- 00687091 California Court of Appeal, Division 3, Case No. 4th Civ. G050155 Volume 62 - Page 207 City of Newport Beach Study Session and Regular Meeting February 24, 2015 C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: APNs 114 - 170 -09 and 114- 170 -70, more commonly referred to as Semeniuk Slough Agency Negotiator: Lauren Wooding, Real Property Administrator Negotiating Party: Sabahan Good Land Holdings, LLC and Kamari Bauer Land Holdings, LLC Under Negotiation: Price and terms of payment V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich VIII. CLOSED SESSION REPORT - City Attorney Harp announced that no reportable actions were taken. IX. PLEDGE OF ALLEGIANCE - Council Member Peotter X. INVOCATION - Dr. Roger Tirabassi, Viewpoint Church XI. PRESENTATIONS - None XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Petros announced that Back Bay Drive will remain closed until February 27, adding that the striping project is one of the first projects that came out of the Bicycle Master Plan and will provide greater passage for bicycles and pedestrians. Mayor Pro Tem Dixon reported that she provided welcome comments at the First Sustainability Summit held on February 5, welcomed the North American Executives of Goodwill International on February 16, and was a guest on the OASIS Sailboat. She announced that the Fire Department will hold seasonal lifeguard tryouts on March 8, and there will be a dedication ceremony of the new Lifeguard Headquarters in honor of fallen Lifeguard Ben Carlson. Additionally, she reported that the Fire Department responded to a boat fire on February 21. She announced an upcoming Music for Children program at the Central Library on March 7 from 11:00 a.m. to noon. She further requested for the March 10 City Council meeting, a proposal to schedule a public hearing on the City's Coastal Development Permit regarding alternatives, footprint, and layout of fire rings. Council Member Curry reported receiving an email from Tom Larkin regarding correcting his comments regarding dock rents, and the number of boats on Mr. Larkin's docks. Council Member Curry noted that he had Mr. Larkin's dock confused with one of his neighbor's and showed a picture of Mr. Larkin's docks. He added that, by having multiple U- shaped docks, his benefit from the change will result in a reduction of his annual dock rent when fees are fully phased in 2017. He stated that Mr. Larkin was a contributor to the political efforts to change the Harbor rents and listed his contributions to other various groups. Volume 62 - Page 208 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Council Member Curry commented on the fire rings and problems since the policy has changed. He requested a report on enforcement issues that have been raised since the change, costs to enforce, and steps that can be made to better protect the City's beaches. Mayor Selich reported attending the first community outreach meeting on the Local Coastal Plan (LCP) at the OASIS Senior Center on February 11, and attending the Mayor's Summit hosted by Concordia University on February 20th. He also attended a tribute to the Iwo Jima Veterans at a luncheon at the Marriott Hotel where he presented certificates to 27 survivors of the Battle of Iwo Jima. He commented on the battle, the sculpture Iwo Jima Flag Raisers, and efforts to bring a model of the statue to Camp Pendleton. He also presented highlights of several heroes. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher referenced his written comments on Item 4 (Zoning Code Amendment to Modify the Standards and Process for Reviewing Building Additions to Nonconforming Structures for Second Reading). He addressed the noticing requirements for adoption of ordinances and expressed the opinion that the City has not provided a fair and accurate ordinance summary. Mark Dixon, massage therapist, thanked Police Department staff for their work and efforts and requested amendments relative to fees for those who are CMTC certified. He also requested that the City allow couple's massages. Wendy Joe, Civilian Investigator for the Newport Beach Police Department, stated that the Police Department is not opposed to allowing couple's massages, but will need to study the matter further. City Attorney Harp suggested bringing the matter back for a first reading after modifying the Ordinance to include couple's massages. He added that fees are reviewed periodically. Civilian Investigator Joe reported that the fee is currently being studied and that a background fee was not included in the City's fee. City Attorney Harp reported that the City Attorney's Office will have further discussions with the Police Department about couple's massages and fees. XV. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the January al, 2015 City Council Planning Session, and the February 10, 2015 Study Session and Regular Meeting [100 -2015] 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. B. ORDINANCE FOR INTRODUCTION 3. Massage Establishment Regulations [100 -2015] Continue to the March 10, 2015 City Council meeting. Volume 62 - Page 209 City of Newport Beach Study Session and Regular Meeting February 24, 2015 C. ORDINANCE FOR ADOPTION 4. Zoning Code Amendment to Modify the Standards and Process for Reviewing Building Additions to Nonconforming Structures for Second Reading (PA2014- 083) [100 -20151 Conduct a second reading and adopt Ordinance No. 2015.3, An Ordinance of the City Council of the City of Newport Beach Approving an Amendment to Title 20 (Zoning Code) of the Newport Beach Municipal Code Revising the Amount of Floor Area Additions Allowed to Nonconforming Structures (PA2014 -083), approving Code Amendment No. CA2014 -004. D. RESOLUTIONS FOR ADOPTION 5. Resolution Endorsing the Application for an Urban Streams Restoration Program Grant Application [100 -20151 Adopt Resolution No. 2015 -11, A Resolution of the City Council of the City of Newport Beach Endorsing the Application for an Urban Streams Restoration Program Grant, and Determining Appropriate Environmental Impact Document, Conditionally Accepting Grant if Offered, and Designating Project Representative, Contract Manager, and Fiscal Agent. 6. Approval of a Transfer Agreement for the FY 2014 Urban Area Security Initiative (UASI) Grant Program (C -6052) [381100 -2015] a) Adopt Resolution No. 2015 -12, A Resolution of the City Council of the City of Newport Beach Approving the Transfer Agreement for the Fiscal Year 2014 Urban Area. Security Initiative Grant Program Purposes between the City of Newport Beach and the City of Anaheim, approving the Agreement for Transfer or Purchase of Equipment/Services or for Reimbursement of Training Costs for FY 2014 Urban Areas Security Initiative ( "Transfer Agreement") and authorizing the City Manager and the Fire Chief to act as the "Authorized Agents" to execute for, and on behalf of, the City any actions necessary to implement the Transfer Agreement and obtain federal financial assistance provided by the Federal Department of Homeland Security (DHS) and sub - granted through the California Office of Emergency Services (Cal OES); b) Accept the FY 2014 UASI Grant Fund Training Allocation in the amount of $3,449 to be utilized for reimbursement of training costs associated with approved DHS courses for emergency response personnel. The City of Anaheim UASI has designated $3,449 to reimburse the City's approved UASI training instructors to conduct regional training; and c) Approve Budget Amendment No. 15BA -035 to accept UASI grant funds, increase revenue estimates by $3,449 in account 18- 20 -486G, and increasing expenditure appropriations by $3,449 in account 1830 -7041. E. CONTRACTS AND AGREEMENTS 7. Storm Drain Trash and Debris Interceptor Project - Notice of Completion and Acceptance of Contract No. 5551 (CAP14 -0039) [381100 -20151 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 the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. Volume 62 - Page 210 City of Newport Beach Study Session and Regular Meeting February 24, 2015 8. Request to Install Private Improvements within the Ocean Boulevard Public Right -of -Way at 3335 Ocean Boulevard (C -6053) 1381100 -20151 a) Waive Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to allow construction of a new 2.33 foot tall retaining wall and appurtenances that encroaches in excess of I -foot into the Ocean Boulevard right -of -way, contingent upon all conditions of the Encroachment Permit process being met; and b) Direct staff to enter into an Encroachment Agreement with the Owners, and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. 9. Request to Retain Private Improvements within the Ocean Boulevard Public Right -of -Way at 3415 Ocean Boulevard (C -6054) and 3425 Ocean Boulevard (C- 6055) [381100 -20151 a) Waive Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to retain an existing stacked stone wall with a maximum height of 3 -feet that encroaches in excess of 1 -foot into the Ocean Boulevard right -of -way, contingent upon all conditions of the Encroachment Permit process being met; and b) Direct staff to enter into an Encroachment Agreement with the Owners, and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. 10. Amendment to Joint Agreement for the Operation, Maintenance and Financial Management of the Orange County 800 Megahertz Countywide Coordinated Communications Systems (C -2755) [381100 -20151 Approve the terms of the Amendment to the Joint Agreement for the Operation, Maintenance, and Financial Management of the 800 Megahertz Countywide Coordinated Communications System. F. MISCELLANEOUS 11. Planning Commission Agenda for the February 19, 2015 Meeting [100 -20151 Receive and file. Motion by Mavor Pro Tern Dixon, seconded by Council Member Curry, to approve the Consent Calendar; and noting the continuance of Item 3 to the March 10, 2015, City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tom Dixon, Mayor Selich XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Bob Caustin commented on prior Consent Calendar water- quality items and thanked and commended Public Works Director Webb and his staff for their work, as well as Assistant City Attorney Mulvihill. Regarding the Balboa Village residential permit parking program, Marianne Zippi, believed that the Newport Beach Municipal Code requires that the majority of residents (50% + 1) sign a petition requesting parking permits if they want them. Further, it indicates that all residents must be Volume 62 - Page 211 City of Newport Beach Study Session and Regular Meeting February 24, 2015 counted, not residential units. She inquired as to how the City knows that it has met the 50% + 1 criteria. She believed that she was told conflicting information regarding ballots, noted that her neighbor voted and received an additional ballot, but pointed out that she dad not receive a ballot. She took issue with the process and expressed concerns regarding the way residents are being counted. She suggested using an independent, licensed agency to administer the ballots, that accurate count of residents be provided, and that a new ballot be mailed to all residents. Tom Larkin refuted Council Member Curry's previous claims, including the number of boats on his docks. He commented on his right to vote for anyone he sees fit and to contribute to whomever he wants, as long as it is legal. He alleged that Council Member Curry has a personal grudge against him and requested an apology. Jim Mosher spoke regarding strategic plans, believed that the City is a municipal corporation without a strategic plan, and noted the benefits of having one. Council Member Peotter addressed Council Member Curry's comments and stated he did not realize that Council Members could provide their own slide shows for their own propaganda. Council Member Curry discussed Mr. Larkin's political contributions during the last election. He added that Mr. Larkin will receive a benefit relative to dock fees, in the amount of $737 which is a 40.2% reduction from what he is currently paying. Council Member Peotter requested that Council decorum for issues such as this be agendized for a future Council meeting. Council Member Muldoon thanked Mr. Larkin for his contributions to the community and apologized to him for any offense he may have felt from the dais. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Peotter reported on a recent and upcoming Transportation Corridor Agency (TCA) meeting, noting that the group will discuss different revenue, toll sharing, and toll reductions to give incentives for the Corona del Mar By -Pass plan. Regarding the February 11 Balboa Village Advisory Committee (BVAC) meeting, Council Member Petros reported that they discussed way- finding and monument signage near Palm Avenue. Council Member Curry reported that the Finance Committee will meet on February 26 at 6:00 p.m. Mayor Selich provided an overview of the February 18 Local Coastal Plan (LCP) meeting where 100 residents were in attendance. Other meetings will be held on February 25 from 7:00 p.m. to 9:00 p.m. in the Civic Center Community Room to discuss Coastal Bluffs and Canyons, and on March 4 in the Civic Center Community Room for coastal zone commercial property owners. He commented on the February 18 Tidelands Management Committee (TMC) meeting and announced that the General Plan /Local Coastal Program Implementation Committee will meet on February 26 at 4:30 p.m. in the Newport Coast Conference Room. XIX. PUBLIC HEARING 12. Balboa Island Residential Condominium Prohibition Code Amendment [100 -20151 Motion by Council Member Petros, seconded by Council Member Curry, to continue the public hearing to the March 10, 2015 City Council meeting due to an error in the publication of the public hearing notice. Volume 62 - Page 212 City of Newport Beach Study Session and Regular Meeting February 24, 2015 M4 Mayor Selich opened the public hearing. Jim Mosher commented on the noticing error and commended staff for self - policing itself; however, wondered if the item was properly noticed when it was presented to the Planning Commission. Community Development Director Brandt reported that the noticing for the Planning Commission hearing was done correctly. Hearing no further testimony, Mayor Selich closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 13. Transfer of Development Rights within the North Newport Center Planned Community (PA2014 -212) [100 -2015] Principal Planner Campbell provided a PowerPoint presentation to provide details of the North Newport Center Planned Community, purpose of the transfer, traffic analysis conducted, and recommendations. Barry Allen spoke in opposition to the item and referenced a contract by The Irvine Company (TIC) where they promised to add residential units to the area. He urged Council to hold TIC to its promise and agreements, and believed that this is not a ministerial act. Jim Mosher agreed with Mr. Allen and discussed his written comments. He addressed development limits in the General Plan and reported that the public is supposed to be safeguarded through the implementation of a tracking system. He addressed funding requirements and stated that he does not see an indemnification clause in the documents. Carl Cassidy believed that this is not a ministerial act since it does not involve little or no impact. He added that it should require a California Environmental Quality Act (CEQA) study. He indicated that this matter impacts the overall budget of the City and needs to go before the Finance Committee. Community Development Director Brandt reported that staff verifies all of the numbers and noted that the application fee is intended to cover staff time involved with preparing the staff report and for legal assistance. She reported that there are items that need clarification and that staff will be doing so at a staff level. City Attorney Harp commented on the term "ministerial" and noted that this is a ministerial act, under the requirements of CEQA. Council Member Petros commented on his experience with similar programs and plans, and noted that this is typical along the State and referenced it as "vanilla planning." Motion by Council Member Petros, seconded by Mayor Pro Tern Dixon, to a) find the proposed transfer of development rights is not subject to the California Environmental Quality Act ( "CEQA") pursuant to Section 15268 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, which exempts ministerial projects from the requirements of CEQA; and b) adopt Resolution No. 2015 -13, A Resolution of the City Council of the City of Volume 62 - Page 213 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Newport Beach Approving the Transfer of Development Rights No. TD2014 -002 within the North Newport Center Planned Community (PA 2014 -212), approving the following transfers of development rights: 1) 83,453 square feet of regional commercial intensity from Fashion Island to Block 100, 2) 16,500 square feet of theater seat intensity from Fashion Island to Block 100, 3) 12,656 square feet of regional commercial intensity from Fashion Island to Block 600, and 4) 134 square feet of general office intensity from Block 500 to Block 600. In response to Council Member Peotter's question regarding an agreement with TIC, Community Development Director Brandt noted that it relates to the last transfer of development since intensity was being moved for the two office towers. City Attorney Harp stated that the agreement was to tear it down or keep it vacant, and that there was no requirement that it be torn down. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 14. Lido Partner Settlement Agreement (C -6056) [381100 -2015J City Manager Kiff noted that the report includes a map and reported that the Agreement addresses a long- standing access way for trucks to enter and exit Via Lido Plaza. Jim Mosher commended the City for presenting the final Settlement Agreement. He commented on the City's litigation costs and confidential contracts with outside counsels. He pointed out an error in the staff report relative to where to mail the Quitclaim Deed. Additionally, he commented on the City's ability to police itself in issuing Coastal Development Permits and questioned whether this project needs one. Mayor Pro Tem Dixon commented on concerns raised by Lido Partners about how delivery trucks would access the Via Lido Plaza. She reported that the City always contended that Lido Partners did not have a perpetual legal right to access the shopping center across from the old City Hall site and, therefore, filed a legal complaint against Lido Partners. She emphasized that the City is always concerned about the continued revitalization of Lido Marina Village, so City staff and Lido Partners reached a consensus agreement to allow trucks access to Via Lido Plaza from Via Oporto. She reported that this will result in a complete dismissal of the lawsuit and allows both parties to move forward. She commended Lido Partners and staff. Motion by Mayor Pro Tem Dixon seconded by Council Member Peotter, to approve the Settlement Agreement between the City of Newport Beach and Lido Partners. Assistant City Attorney Mulvihill recommended that Council finds that the approval of the Agreement is exempt from the California Environmental Quality Act (CEQA) for the reason set forth in the staff report. City Manager Kiff and Council Member Petros expressed appreciation to Mayor Pro Tem Dixon for her work on this matter. Amended motion by Mayor Pro Tem Dixon, seconded by Council Member Peotter, to a) approve the Settlement Agreement between the City of Newport Beach and Lido Partners; and b) find that the approval of the Agreement is exempt from CEQA pursuant to the reasons set forth in the staff report. The amended motion carried by the following roll call vote Volume 62 - Page 214 City of Newport Beach Study Session and Regular Meeting February 24, 2015 Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 15. Mid -Year Budget and Staffing Update with Recommendations to Revise Certain Revenue Estimates, Increase one Expenditure Appropriation, and Fund Transfers and Adopt a Resolution Amending Resolution No. 2014 -52 (Budget Resolution) to Adjust Position Staffing [100 -20151 Council Member Peotter referenced the surplus, appropriations to the Unappropriated Assessment Fund and the Compensated Absences Fund, and asked for clarification regarding the latter. City Manager Kiff explained the General Insurance Reserve Fund and the Compensated Absences Fund. He added that there are specific claims in the General Liability Fund, but they also fall under General Claims that the City may expect in the future. Finance Director Matusiewicz addressed the status of the General Liability Fund. In response to Council Member Peotter's question, City Manager Kiff noted complexities in terms of claims. Council Member Peotter stated that he would like the City to start a debt repayment fund. Council Member Petros explained that the City is saving the assets as surplus that it has received. He noted that the City is being proactive in terms of its liabilities. Motion by Council Member Petros, seconded by Mayor Pro Tem Dixon, to a) approve Budget Amendment No. 15BA -030 that increases General Fund revenue estimates by $5,148,470; b) approve Budget Amendment No. 15BA -031 that increases expenditure appropriations by $40,000 from unappropriated Assessment Fund fund balance to Account No. 7401 -9812 (Assessment District Engineering); c) approve Budget Amendment No. 15BA -034 that transfers $2.5 million from the General Fund to the Insurance Reserve Fund and $1.0 million from the General Fund to the Compensated Absences Fund; and d) adopt Resolution No. 2015 -14, A Resolution of the City Council of the City of Newport Beach Amending Annual Budget Resolution No. 2014 -52, Establishing Certain Job Classifications, and Adjusting Position Allocations and Salary Ranges, in the following departments: Fire, Human Resources, Municipal Operations and Police. Jim Mosher spoke regarding personnel issues, including increasing salary ranges for the City's Police and Fire Chiefs. He discussed their current salaries and benefits, noting that they receive more than the City Manager. He reminded Council of the City Charter and Section 601 that forms Administrative City Departments and pointed out personnel changes occurring in the report. Carl Cassidy encouraged the City to allocate more funds into its insurance fund. He suggested that the City compare its legal costs with other cities. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Council Member Peotter commented on the draft agenda for future meetings Volume 62 - Page 215 City of Newport Beach Study Session and Regular Meeting February 24, 2015 XXI. MOTION FOR RECONSIDERATION- None XXII. ADJOURNMENT- Adjourned at 8:34 p.m. in memory of Henry Segerstrom The agenda for the Regular Meeting 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 19, 2015, at 4:00 p.m. L�,�/kl L City Clerk Recording Secretary (Idt, Mayor Volume 62 - Page 216