HomeMy WebLinkAbout01 - MinutesDecember 8, 2015
Agenda Item No. 1
CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
November 24, 2015
I. ROLL CALL - 6:00 p.m.
Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council
Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
City Clerk Brown announced that Council Member Peotter is participating from a
teleconference location pursuant to Government Code §54953(b) - 9809 SW Quail Post
Road, Portland, Oregon.
II. PUBLIC COMMENTS
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Jim Mosher commented on Closed Session Item D and on a section of the City Charter that
requires that when a freeway is constructed in the City, it has to have the approval of the public.
He commented on the subject property and questioned how the freeway project moved ahead
without public participation. —
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.
III. CLOSED SESSION - 6:05 p.m. _hk
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6)
Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City
Manager, Terri Cassidy, Deputy City Manager, Barbara Salvini, Human Resources Director,
and Jonathan Holtzman; 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. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code § 54957 (b)(1))
Title: Dave Kiff, City Manager
Aaron C. Harp, City Attorney
Leilani Brown, City Clerk
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IV
VA
C. CONFERENCE WITH LABOR NEGOTIATOR
(Government Code § 54957.6)
Agency Designated Representative: Council Member Tony Petros
Unrepresented Employees: Dave Kiff, City Manager, Aaron C. Harp, City Attorney, and
Leilani Brown, City Clerk.
D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code § 54956.8): 1 matter
Property: Parcel C (APN 442-071-23) generally located at 3300 Jamboree Road,
Newport Beach, California
Agency Negotiator: Dave Kiff, City Manager
Negotiating Party: Fletcher Jones Motor Cars
Under Negotiation: Price and terms of payment for sale of real property
RECESS
RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
VI. ROLL CALL
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Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council
Member Duffield, Council Member Muldoon, Mayor Tem Dixon, Mayor Selich
City Clerk Brown announced that Council Member Peotter is participating from a
teleconference location pursuant to Government Code §54953(b) - 9809 SW Quail Post
Road, Portland, Oregon.
VII. CLOSED SESSION REPORT - None _
VIII. PLEDGE OF ALLEGIANCE - Council Member Muldoon
IX. INVOCATION - Council Member Curry
Mayor Selich announced that Item No. 27 will be heard immediately after Item No. 23,
without objection.
X. NOTICE TO THE PUBLIC
XI. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEMS)
Council Member Curry announced that the Orange County Business Council presented the
Leadership Award for Public Service to Mayor Selich, at the annual Turning Red Tape into Red
Carpet Awards.
Council Member Petros reported on an informal meeting on November 16, 2015 in Dover Shores, to
discuss issues related to John Wayne Airport (JWA) takeoffs. He added that as Chair of the
Aviation Committee, he is following the matter, listening to the public and engaging the County
and the FAA. Additionally, on November 17, 2015, he and the City Attorney participated in a
conference call with the City of Phoenix and their legal counsel, to discuss their lawsuit with the
FAA and the circumstances around that. He noted that there are many differences in
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circumstances, but also a great deal of similarity between the two cities and will be looking forward
to a collaborative role that will enhance the City's position with the FAA in future discussions.
Mayor Selich reported attending the Marine Ball on November 10, 2015. On November 12, 2015,
he attended a meeting with Balboa Island residents to discuss the dredging of the Grand Canal and
the status of the Park Avenue Bridge. Additionally, he reported attending the Citizen of the Year
banquet for Paul Watkins and welcomed the Black Meeting Planners Coalition which was held in
the City to study the possibility of hosting future conventions in Newport Beach. He added that he
participated in the recent ceremonial lighting at the Dunes Resort. Mayor Selich announced that
the City Clerk's office is accepting new and unwrapped toys for the Children of our Troops through
Operation Christmas.
XII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA - None
XVIII. PUBLIC HEARING (Pursuant to City Council Policy A-6, Item 20 is being taken out of
order)
20. Proposed Assessment District No. 117 - Area Bounded by Bayside Drive, Avocado
Avenue, Coast Hwy & Carnation Avenue [89/100-2015]
Council Member Muldoon recused himself from this Item due to a financial interest.
Council Member Curry recused hi
with AT&T.
City Attorney Harp clarified that'
to a financial conflict.
this Item due to a stockholder conflict
Muldoon had to recuse himself due
Assistant City Engineer Sinacori and Public Works Director Webb provided a brief report and
addressed the counting of ballots, the tabulation process and announcement of the results.
Assistant City Engineer Sinacori addressed next steps and the proposed schedule.
City Clerk Leilani Brown announced that those counting ballots have been deputized to do so.
Mayor Selich opened the public hearing.
Neal Ellis, 621 Begonia, spoke against the assessment district adding that the telephone poles
should not be removed at the expense of property owners. He commented on irregularities in
the petition and opined the entire petition is suspect.
Jim Mosher, 2210 Private Road, addressed Council's original direction to staff regarding this
matter and requested clarification regarding the petition result when City parcels are not voted
for and not included in land acreage. He commented on the amount of money at risk, and
inquired on money spent to date, and questioned the process if the vote results in over 50%.
Malcolm Geffen, 412 Avocado, spoke against the assessment district and alleged that his name
was forged on the original signature, in favor of same. He expressed concerns with proceeding
in small sections, with the invalid ballot and with related costs. He suggested that Council
should look at the whole City rather than singling out one small portion.
Lila Crespin spoke against the assessment district noting that it was improperly thought out
and is unfair to residents.
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Patti Gorczyca, 605 Begonia, spoke in support of the assessment district and thanked specific
property owners who were part of a working group as well as City Council and staff.
Elizabeth Young, 2228 Pacific Drive, spoke in support of the assessment district and listed her
reasons for same. She encouraged the Finance Committee to consider a deferred assessment
program in order to lighten the burden on residents.
Dennis Baker, 706 Begonia, spoke in support of the assessment district and reported that his
assessment is $27,000.
Mark Simon, 2420 First Avenue, spoke in support of the assessment district.
Harold Meany, 601 Carnation, spoke in support of the assessment district and commented on
the many improvements made by the City during the last few years. He commented on long-
term financing to minimize the burden on residents and questioned the costs and length of time
to complete the project. Ak
Hearing no further testimony, Mayor Selich closed the public hearing. He announced
that the ballots will be counted at this time and the results will be announced once the
tabulations have been completed. '
Public Works Director Webb commented on the money and time spent on the process and
Assistant City Engineer Sinacori addressed the utilities involved.
The meeting continued as per the agenda (ITEM XIII) at this juncture.
IV
City Clerk Brown announced that, based on the tabulations for the ballots received, 52.20% of
the ballots were submitted in favor of the Assessment District for a total assessment of
$1,741,039.28. 47.80% of the votes were submitted in opposition, for a total assessment of
$1,594,380.56.
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Motion by Council Member Peotter, seconded by Council Member Duffield, to adopt
Resolution No. 2015-102, A Resolution of the City Council of the City of Newport Beach,
California, Making Determinations, Confirming Assessments and Proceedings and Designating
the Superintendent of Streets to Collect and Receive Assessments and to Establish a Special
Fund for City of Newport Beach Assessment District No. 117, overruling protests, approving
final engineer's report, levying assessments without modification, approving and ordering the
work and improvements for the utility underground project, and authorizing and directing
related actions with respect to Assessment District No. 117 since the results were greater than
or equal to 50% of the weighted "Yes" votes versus "No" votes.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Petros, Council Member Duffield, Mayor
Pro Tem Dixon, Mayor Selich
Recuse: Council Member Curry, Council Member Muldoon
The meeting was directed to the regular agenda, Item No. 24, at this juncture.
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR
Dennis Baker spoke regarding Item No. 16 (Contract for Veterinary Services) and complemented
Council and staff for addressing the issue.
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Elizabeth Conway spoke regarding Item No. 4 (Second Reading and Adoption of Ordinance No.
2015-33 Imposing An Express Ban on Marijuana Cultivation, Marijuana Processing, Marijuana
Delivery, and Marijuana Dispensaries in the City) and asked Council to delay consideration and
approval of the subject ordinance to remove the ban on delivery. She added that wholesale ban on
all cannabis activity allows the entry for illegal players and deprives the City of the tax revenue it
could use to fund needed public education and safety efforts. She added that medical cannabis
delivery has been occurring statewide and encouraged the City to reconsider not banning delivery.
Jim Mosher commented on Item No. 3 (Water Efficient Landscape Ordinance Amendment) and
referenced an ordinance being proposed by the Metropolitan Water District of Orange County. He
stated that the ordinance proposed at this time is not the final draft that had been prepared and
encouraged adoption of the "correct" one.
Frank Marino, Chairman/CEO of MJIC, spoke regarding Item No. 4. He requested that Council
postpone the express ban on cannabis deliveries to medical marijuana patients in the City. He
noted there are many patients in the City and many are un&e to travel to gain safe access to their
medicine. He noted there are many statistics showing the%f of marijuana to many illnesses
and diseases, and offered additional information to Coyncil.
XIV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the November 10, 2015 Study Session and Regular Meeting [100-2015]
Waive reading of subject minutes, approve as amended, and order filed.
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2. Reading of Ordinances
Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by
title only.
ORDINANCE FOR INTRODUCTION
Water Efficient Landscape Ordinance Amendment (NBMC Chapter 14.17) [100-2015]
a) Find that the adoption of Code Amendment No. CA2015-001 is not subject to the California
Environmental Quality Act (CEQA) pursuant to Section 15307, Class 7 (Actions by
Regulatory Agencies for the Protection of Natural Resources); and
b) Introduce Ordinance No. 2015-34, An Ordinance of the City Council of the City of Newport
Beach, California, Amending Chapter 14.17 of Title 14 of the Newport Beach Municipal
Code in its Entirety Pertaining to Regulations Required for Water Efficient Landscaping
(PA2015-169), and pass to second reading on December 8, 2015.
ORDINANCE FOR ADOPTION
4. Second Reading and Adoption of Ordinance No. 2015-33 Imposing An Express Ban on
Marijuana Cultivation, Marijuana Processing, Marijuana Delivery, and Marijuana
Dispensaries in the City [100-2015]
Conduct second reading and adopt Ordinance No. 2015-33, An Ordinance of the City Council of
the City of Newport Beach, California, Imposing an Express Ban on Marijuana Cultivation,
Marijuana Processing, Marijuana Delivery, and Marijuana Dispensaries in the City.
RESOLUTIONS FOR ADOPTION
5. Resolution of the City Council of the City of Newport Beach Regarding Disability
Retirement and Reinstatement Determinations and Appeals for Local Safety
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Members Under the Public Employees Retirement Law; Delegating Authority for
Local Public Safety Member Disability Retirement and Reinstatement
Determinations and Rescinding Resolution No. 2008-89 [100-20151
Adopt Resolution No. 2015-100, A Resolution of the City Council of City of Newport Beach,
California, Regarding Disability Retirement and Reinstatement Determinations and Appeals for
Local Safety Members Under the Public Employees Retirement Law; Delegating Authority for
Local Public Safety Member Disability Retirement and Reinstatement Determinations and
Rescinding Resolution No. 2008-89.
6. Approval of Measure M2 Expenditure Report [100-2015]
Adopt Resolution No. 2015-101, A Resolution of the City Council of the City of Newport Beach,
California, Concerning the Measure M2 Expenditure Report for the City of Newport Beach for
the Fiscal Year Ending June 30, 2015, substantially to form, subject to technical revisions in
conformance with OCTA guidelines.
CONTRACTS AND AGREEMENTS
7. Big Canyon Restoration Wetlands Project - Approval of Amendment No. 1 to the
Professional Services Agreement with Burns & McDonnell (Project 15X12; C -6023A)
[38/100-20151
Approve Amendment No. 1 to the Professional Services Agreement (C -6023A) with Burns &
McDonnell of Brea, California, to make design modifications specified in the scope of work for
the Big Canyon Restoration Wetlands project at a not -to -exceed fee of $135,720.00 and
authorize the Mayor and City Clerk to execute the Agreement.
8. Orange County Sanitation District (OCSD) Mariners Mile Wastewater Force Main
City Inspection Support Services Amendment with Anderson Penna (C-6107) [38/100-
2015]
a) Approve Amendment No. 2 with Anderson Penna for an additional $75,800 in inspection
support services and authorize the Mayor and City Clerk to sign the agreement on a form
approved by the City Attorney;
b) Approve Budget Amendment No. 16BA-018, increasing revenue estimates in the
Contributions fund by $119,350 in account 13501-431075 and increasing expenditure
appropriations by $119,350 in the Contributions Fund in account 13501-980000-16S10; and
c) Approve Budget Amendment No. 16BA-018, increasing revenue estimates in the Water
Capital Fund by $55,297.66 in account 70203-511040 and increasing expenditure
appropriations by $55,297.66 in the Water Capital Fund in account 70201-980000-15W02.
Council Member Duffield recused from this Item since his residence is within 500 feet
of the subject property.
Council Member Curry recused from this Item since he is a Director of the Orange
County Sanitation District.
9. Storm Drain Evaluation - Approval of Professional Services Agreement with
Downstream Services, Inc. - Contract No. 6277 [38/100-20151
Approve Professional Services Agreement, Contract No. 6277, with Downstream Services, Inc.
of Escondido, California, to provide storm drain evaluation services at a not -to -exceed price of
$200,000.00, and authorize the Mayor and City Clerk to execute the Agreement..
10. Request to Relocate a Driveway and Install Private Improvements within the Public
Right -of -Way at 2723 Ocean Boulevard (N2015-0365) (C-6371) [38/100-20151
a) Waive City Council Policy L-2, Driveway Approaches, to allow the relocation of an existing
driveway on Ocean Boulevard;
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b) Waive City Council Policy L-6, Private Encroachments in the Public Rights -of -Way, to
allow retaining walls and guard rails that exceed 36 inches in height, private landscaping,
private irrigation, drainage improvements and appurtenances that encroach in excess of 1 -
foot into the Ocean Boulevard right-of-way, contingent upon all conditions of the
Encroachment Permit process being met; and
c) 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.
11. Eastbluff Park Field Improvements - Award Contract No. 6268 [38/100-2015]
a) Approve the project plans and specifications;
b) Award Contract No. 6268 to Calpromax Engineering, Inc. (Calpromax), for the total bid
price of $138,800.00, and authorize the Mayor and the City Clerk to execute the contract;
and
c) Establish a contingency of $21,200.00, approximately 15 percent, to cover the cost of
unforeseen work.
12. Orange County Transportation Authority Cooperative Agreement No. C-5-3525 for
MacArthur Boulevard Rehabilitation from East Coast Highway to Bonita Canyon
Drive (C-6372) [38/100-2015]
Approve Cooperative Agreement No. C-5-3525 Vith OCTA for APM grant funds for the
MacArthur Boulevard Rehabilitation project, ana authorize the Mayor and City Clerk to
execute the agreement. As
13. Annual Concrete Replacement Program - Award of Contract No. 6304 [38/100-2015]
a) Approve the project drawings and specifications;
b) Award Contract No. 6304 to Unique Performance Construction, Inc. for the Total Bid Price
of $483,425.00, and authorize the Mayor and the City Clerk to execute the contract;
c) Establish an amount of $49,000 (10%) to cover the cost of unforeseen work not included in
the original contract; and
d) Approve Budget Amendment No. 16BA-015, transferring $50,000.00 in project savings from
Account No. 01001927-980000-151104 (2014-2015 Citywide Slurry Seal Program) to Account
No. 01001927-980000-16E11 (Concrete Pavement Replacement).
14. Amendment of Professional Service Agreement with T&B Planning for
Environmental Services for the Proposed 150 Newport Center Project Located at
150 Newport Center Drive (PA2014-213) (C-6103) [38/100-2015]
Approve the amendment to the Professional Services Agreement, and authorize the Mayor and
City Clerk to execute the agreement.
15. Animal Sheltering Services (C-6373) [38/100-2015]
Authorize the Mayor to sign a contract with Home Free Animal Sanctuary, 20302 Riverside
Drive, Newport Beach, CA 92660 for $60,000 per year.
16. Contract for Veterinary Services (C-6374) [38/100-2015]
Authorize the Mayor to sign the Professional Services Agreement with Mariner's Mile Pet
Clinic for Veterinary Services at the City's contract Animal Shelter.
MISCELLANEOUS
17. Planning Commission Agenda for the November 19, 2015 Meeting [100-2015]
Receive and file.
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18. Confirmation of Appointments to the Newport Beach Restaurant Association
Business Improvement District Advisory Board of Directors [100-20151
Appoint Alexandra Robinson representing Back Bay Bistro, and Christopher Roman,
representing Cucina Enoteca, to fill the unexpired balance of Cindy O'Shea and Alexandra
Robinson's terms on the Newport Beach Restaurant Association Business Improvement
District Advisory Board of Directors which expire on June 30, 2016.
19. Acceptance of the 2014 Emergency Management Performance Grant from the
Federal Emergency Management Agency (FEMA) [100-20151
a) Accept the grant funding in the amount of $10,712 used in support of the City's emergency
management program; and
b) Approve Budget Amendment No. 16BA-017 to accept grant funds from the Federal
Emergency Management Agency (FEMA) through the County of Orange, increase revenue
estimates by $10,712 in account 01040403-431250, and increase expenditures
appropriations by $10,712 in account 01040403-821005.
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Motion by Mayor Pro Tem Dixon, seconded by Council Member Duffield, to approve the
Consent Calendar, noting recusals by Council Members Curry and Duffield on Item No. 8.
The motion carried by the following roll call vote: k
Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council
Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
XV. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVI. PUBLIC COMMENTS ON NON-AG1iIDA ITEMS
Dennis Baker requested that Corn sider televising
making them available on the City's w
George Schroeder agreed with the previo speaker and
Planning Commission meetings for increased transparency.
Planning Commission meetings and
asked that Council consider televising
Arym Diamond, 202 Canal, commented on speed limits and signage on Pacific Coast Highway and
expressed concerns regarding the high amount of traffic coming from Huntington Beach. Mayor
Selich suggested he speak with Public Works Director Webb.
XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None
XVIII. PUBLIC HEARINGS
21. Former City Hall Complex Land Use and Zoning Amendments for the Lido House
Hotel Located at 3300 Newport Boulevard and 475 32nd Street, and Authorization of
Fostering Interest in Nature Program [100-20151
Senior Planner Campbell provided a PowerPoint presentation. He addressed background
including approval of the Lido House Hotel and other actions regarding the site, and modified
amendments. He addressed a cooperative effort between the City and the Newport Dunes for
an educational, camp -like experience for low-income students. He reported that the Coastal
Commission endorsed the program and addressed actions for Council to take at this time as
well as next steps.
Mayor Selich opened the public hearing.
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Jim Mosher commented on inconsistencies between the General Plan and the Coastal Land -
Use Plan in terms of allowing unlimited municipal facilities. He commented on the hotel being
a revenue source for the City and expressed concerns that taxpayers are being asked to
subsidize the hotel project.
Arym Diamond, 202 Canal, noted that one of the concerns of the Coastal Commission was
whether the program would be in perpetuity. He opined that it is a terrible project, especially,
in terms of traffic and noted that the height of the building is above what the City has already
set, as a limit.
Hearing no further testimony, Mayor Selich closed the public hearing.
Motion by Mayor Pro Tem Dixon, seconded by Council Member Curry, to a) find that
all significant environmental concerns for the proposed project have been addressed in the
previously certified Lido House Hotel Final Environmenf.l Impact Report (SCH#2013111022),
and that the changes reflective of the Coastal Commissio]' certification of LCP-5-NPB-14-
0831-3 are not substantial, as they do not involve new sig lificant effects or a substantial
increase in the severity of previously identified significant effects, and therefore, a subsequent
environmental analysis does not need to be prepared; b) find tht FiiN program is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) and
15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; c)
adopt Resolution No. 2015-104, A Resolution of the City Council of the City of Newport Beach,
California, Accepting the Suggested Modifications from the California Coastal Commission
(LCP-5-NPB-14-0831-3) and Approving Revised General Plan Amendment No. GP2012-002 and
Revised Coastal Land Use Plan Amendment No. LC2012-001 for the Former City Hall Complex
Located at 3300 Newport Boulevard and 475 32nd Street (PA2012-031); d) introduce Ordinance
No. 2015-35, An Ordinance of the City Council of the City of Newport Beach, California,
Approving Zoning Code Amendment No. CA2012-003 for the Former City Hall Complex Located
at 3300 Newport Boulevard and 475 32nd Street (PA2012-031), and pass to second reading on
December 8, 2015; e) direct staff to take the necessary steps to develop and implement a new
recreation program called "Fostering Interest In Nature (FiiN)" and develop a Memorandum of
Understanding with the California Coastal Commission to operate the program in accordance
with Coastal Development Permit No. 5-14-1785 (CDP) for the Lido House Hotel; and 0
approve Budget Amendment No. 16BA-012 in the amount of $1,415,232 establishing a new
restricted reserve fund for the FiiN Program.
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
22. Annual Reporting on Development Impact Fees & Development Agreements [100-
2015]
Mayor Selich opened the public hearing. Hearing no testimony, Mayor Selich closed
the public hearing.
Motion by Council Member Curry, seconded by Council Member Petros, to receive and
file the Annual Reports on Development Impact Fees, and Development Agreements.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council
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Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
XIX. CURRENT BUSINESS
23. Project Concept Approval for the Replacement of the Corona del Mar Fire Station
No. 5 and Branch Library [38/100-20151
Deputy Public Works Director Vukojevic provided a PowerPoint presentation addressing
location, existing conditions, community outreach, proposed conceptual layout, building and
site features, community support of architecture, estimated costs, next steps and
recommendations.
Brief discussion followed regarding budget options.
Joy Brenner reported attending numerous meetings and stated she sees this project as a model
of citizens, staff and government working together for tie betterment of the community. She
commented on differences of opinion but everyone was able tareach a satisfactory conclusion.
Jim Mosher commented on the architect and referenced an announcement from the City of
Costa Mesa regarding a fire station of a similar design, where residents were asked to weigh in
on the design. He questioned why residents were not asked to comment this design, and
commented on the need for a temporary fire station during construction.
Elizabeth Stahr commented on the use and importance of the Corona del Mar Library and
spoke in support of the project. She thanked Council for continuing the service.
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Marilou Hergel Foster spoke in support of the Corona del Mar Library and commented on the
outreach process and the cooperation between the City, residents and staff.
Wendy Salter spoke in support of the project and commended the City for the process. She
asked that Council approve the budget so that the project can move forward.
Council Member Peotter commented on the possibility of doing value engineering and adding
the project to the 2016/2017 budget, rather than the current year.
Motion by Council Md,mber Peotter, seconded by Council Member Curry, to a) approve
floor plan option D-4, and rendering Option 3 as the preferred floor plan layout and exterior
architectural style Concept for the Corona del Mar Fire Station No. 5 and Branch Library
replacement; and b) establish a total project budget goal at a not -to -exceed cost of $8,000,000.
Council Member Curry commended Council Member Peotter for attending community meetings
and supporting this project. He commented positively on the cooperative process and
commended the community for its input.
Mayor Pro Tem Dixon agreed with Council Member Curry's comments and noted the
cooperative spirit between the City and the community. She commented positively on the
potential public/private partnership going forward and stated she looks forward to hearing
more about that.
Council Member Muldoon spoke in support of the project and hoped that the City will continue
to pin down the debt.
Mayor Selich stated he supports taking the value engineering approach to this project.
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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
27. Professional Services Agreement - Civic Center Audit (C-6376) [38/100-2015]
(Pursuant to City Council Policy A-6, Item 27 was taken out of order)
City Attorney Harp provided a brief background and addressed Council's previous direction for
the City Attorney's office to select a project manager and audit firm. He addressed the
selection process and deferred to the Project Manager for a report.
Allyson Gipson, Harris & Associates, Project Manager, provided a PowerPoint presentation
with a brief overview of the process for selecting the auditing firm and addressed the goals of
the audit, the procurement process, the evaluation process, an overview of proposing firms,
shortlisted firms, the interview evaluation process and AL
n and negotiations.
Council Member Petros commented on possible contradictions and asked regarding Phase 1
and Phase 2 as well as the chosen firm. He suggested that, if Council moves forward with the
project, that the compensation for the consultant be on a not -to -exceed, fixed fee basis.
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Project Manager Gipson stated a fixed fee would be a great opportunity for the consultant, but
not for the City. She addressed the valuation of the half of a percent and noted speaking with
industry representatives as well as the short-listed firms about their evaluation of Phases 1
and 2. All of them were within the same cost ratios. In terms of the ability to be flexible, the
"not -to -exceed" allows for more flexibility and Project Manager Gipson noted that part of her
role is to monitor what the firm is doing and to keep costs as tight as possible.
In response to Mayor Pro Tem Dixon's question, Project Manager Gipson addressed standard
industry practices with respect to the process and the timing for this type of audit. She added
that a component of the process will be "lessons learned" and commented on the concept and
various components of the subject project.
In response to Council Member Muldoon's question, Project Manager Gipson listed her
qualifications and experience and confirmed that she has no perceived or actual conflicts and
has no relationship with the contractors in question or staff members. Additionally, she
addressed the reason for performing in phases.
Council Member Muldoon stated he would like to set a reasonable reporting period that would
also allow for an objective, transparent audit without having to deal with budget pressures.
In response to Council Member Curry's question, Project Manager Gipson stated that she
reviewed a report issued by the City Manager, in January and commented on her thought
processes in reviewing that report.
Council Member Curry commended Ms. Gipson for reviewing the report and encouraged the
public to read the staff report for this item. He added that for what the City will pay for this
project, it could pay for half the cost of the Library expansion; which would be money, infinitely
better spent. He provided a history of the matter and addressed actions that were taken to
drive a politically -motivated audit that serves no purpose, and suggested using the money to
benefit the taxpayers.
In response to Mayor Pro Tem Dixon's request, Project Manager Gipson addressed the
commonality of an audit such as the subject audit. She reported that it depends on the agency,
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and third -party audits are usually done at the end of a program or project. She added that
sometimes, the cost of the audit is included in the cost of the overall project and usually, audits
are done on complex projects or if problems arise in the midst of a project.
Mayor Pro Tem Dixon stated she wishes the prior Council had dealt with this matter but noted
that the amount of the Civic Center project is a sizable amount, using taxpayer money for a
very complex project, and it is incumbent upon the City to be accountable to the taxpayers. She
addressed the importance of lessons learned to provide a roadmap for future projects. She
added that it is the City's responsibility to respond to residents in terms of how this project was
managed and hoped that the politics could be removed from this issue. She noted that Council
has a fiduciary responsibility and that it is owed to the taxpayers.
Council Member Curry noted that information regarding the cost of the project is available in
the vast documentation that was provided by the City Manager in January. He stated there
has been a strange reluctance to read the documentation by those who profess curiosity about
what happened. He indicated that this is about a political manipulation to create an issue and
stated this is a $600,000 red-light warning that the City is being asked to waste.
Council Member Duffield noted that over 60% of,91holters elected him over the incumbent Mayor
because residents were not happy with how this project was handled. He stated there is a
concern to put this issue to bed so that in the future, similar problems can be avoided. He
added that this is what the majority of voters want.
Arym Diamond, 202 Canal, opined that the City has been poisoned from this project and stated
that what Council Member Curry is missing is that people are upset because there was an
overrun. He stated that this project will affect every other project that will be taken up by the
City and that this matter should be taken very seriously.
George Lesley, 500 Canal, expressed skepticism about the proposed $600,000 expenditure. He
stated that Council has a fiduciary duty to explain to residents, the cost/benefit of spending an
additional $600,000 of taxpayer money. He added that there were no specific objects stated
that would lead to findings that would provide residents with money value, believes this project
was extremely unique and very complex, and opined that it is unlikely that the City will ever
have a project of this complexity. He suggested hiring a consultant for a future project in order
to learn those lessons, rather than going back and spending $600,000 of taxpayer money to find
out that $1,040,000 was spent. He referenced an article in the Orange County Register that
recapped the Civic Center project and suggested going back and reading the article.
Jim Mosher commented on the original motion authorizing an audit review and the purpose for
same. He reported that the contract issued for the management part is more than half the
amount allotted for the actual audit and therefore, did not think the City has learned much.
Council Member Muldoon commented on Mr. Lesley's understanding of the importance of an
audit, after the fact, and on the possibility of potential damages for fraud or collusion. He
commented on massive change orders, private events and undisclosed gifts and stated that for
Council to "not look" is corruption. He noted that piece of mind and trust are two of the
numerous benefits to moving ahead with this project.
Motion by Council Member Muldoon, seconded by Mayor Pro Tem Dixon, a) authorize
the Mayor and City Clerk to execute the Professional Services Agreement with RW Block
Consulting, Inc. with the following revisions: i) the not to exceed amount shall be $300,000; and
ii) the Professional Services Agreement shall have a revised scope of work that provides for one
phase with periodic reporting to the City Council; and b) approve amended Budget Amendment
No. 16BA-016, to increase expenditure appropriations by $352,920 from the General Fund
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City of Newport Beach
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unappropriated fund balance to the City Council's budget for professional and technical
services, 01005005-811008.
Council Member Petros commented on the new allegations of gifts and "back-slapping" when
the topic is supposed to be about an audit. He commented on the start of the process and it's
repeated "morphing" and noted that none of the "Team Newport" people were here throughout
it. He stated this project has a long history with over forty meetings and changing in scope. He
added that the bridge was a regulatory requirement resulting from the EIR. He indicated that
this is motivated by political opportunism and suggested that is the lesson that needs to be
learned, first.
Mayor Selich stated he will not support the motion and opined the subject project is a huge
waste of money.
City Attorney Harp confirmed the motion to include a contract not to exceed $300,000 and a
budget amendment for $352,920.
Council Member Curry noted this is how budgets j&crea
The motion carried by the following roll call vote: ` ' 0
Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon, Mayor
Pro Tem Dixon
Nays: Council Member Petros, Counciler Curry, Mayor Selich
Council Member Muldoon recused himself f the continued Item No. 20 due to a
financial interest.
Council Member Curry recused himself from the continued Item No. 20 Item due to a
stockholder conflict with AT&T.
I
The announcement of the vote arding Item No. 20 (Proposed Assessment District No. 117)
was made at this juncture.
Council Member Peotter was excused from the meeting at 9:23 p.m.
24. Cooperative Agreeme with the County for Mooring Management Services in
Newport Harbor (C-4569) [38/100-2015]
Public Works Director Webb presented this item noting the RFP process and a thorough review
of the proposed services. He provided recommendations and offered to respond to questions
from Council.
Motion by Council Member, seconded by Council Member Petros, to approve and
authorize the Mayor and City Clerk to execute the Cooperative Agreement with the County of
Orange for Mooring Management in Newport Harbor for five (5) years.
Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Peotter (excused)
25. Award of Affordable Housing Fund [100-2015]
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Community Development Director Brandt introduced the item noting that the money has been
collected in lieu of providing affordable housing, over the last few years. She reported there is
approximately $4.2 million in the fund that is available for disbursements through a variety of
programs eligible for same. She deferred to staff for a report.
Senior Planner Murillo provided details of a PowerPoint presentation addressed the three
projects for which staff is recommending allocation of the Affordable Housing Fund. He
provided background and addressed the Request for Proposals, proposal evaluation, and
presented a detailed overview of each of the three recommended projects.
In reply to Council Member Petros' question, Senior Planner Murillo confirmed this is a grant
of money which is associated with specific terms. Specifically to one of the sites, he added there
is no possibility of building a sober -living home on the site. Additionally, according to the
terms of the agreement, every resident would go through background checks and he addressed
Police calls for service that have occurred at existing sites.
Ak
Community Development Director Brandt reported that staff believes there will be an
improvement for calls for service as with thenosed agreement this would be a more -
managed living environment.
In further response to Council Member Petros' questions, Public Works Director Webb
addressed and listed improvements specific to West Newport that are currently in progress
and/or pending in the area.
Community Development Director Brandt added that the City has recently entered into an
agreement with a landscaping design firm to help develop a streetscape improvement plan for
the West Newport/Mesa area. Additionally, she addressed Eco Beach, a private construction
project, currently underway. I
Eric Payne, Community Development Partners and Larry G. Haynes, Jr. with Mercy House,
provided a PowerPoint presentation addressing background, project objectives and goals,
providing housing for seniors and veterans, renovation of existing structures and existing/likely
versus proposed changes and services. Mr. Haynes added information regarding Mercy House
addressing quantity and quality of care and noting no negative impacts on the community.
Celeste Jardine -Haug, QASIS Senior Center and Chris Baiocchi, Habitat OC, addressed the
partnership and specific roles of each organization including identifying seniors in need and
focusing on safety and accessibility, not cosmetic repairs.
Charles Gross, President of the Board of Directors of Seaview Lutheran Plaza, Inc., provided
information regarding his organization including its purpose of providing affordable housing to
seniors. He reported that the units are in need of attention in terms of increased personal
safety and accessibility. He addressed their professional management team and offered to
respond to questions from Council.
Nancy Spring reported providing management services to Seaview Lutheran Plaza, Inc.,
throughout its history. She introduced Martin Lakatos, their in-house architect, and indicated
looking forward to working closely with the City to make the necessary improvements in terms
of complying with ADA requirements and accessibility.
Carol DeFreitas alleged that the City is not authorized to enter into the subject agreements
and referenced Government Code Sections 65583 and 65583.2, which require the City to keep
an inventory, by parcel number, that can be used for affordable housing. She referenced an
exception, the Adequate Sales Alternative, and reported that the exception only applies in
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limited circumstances, none of which the City complies with. She addressed the City's
requirements in terms of the number of very -low and low-income housing units and a
determined cap. She referenced the City's Housing Element in terms of acknowledging its need
to create 700 new units and that is has created none.
Carol McDonald questioned grouping seniors and veterans but spoke in support of the project.
Elise Richards reported that one of the sites is close to a playground and expressed concerns
regarding safety. She believed that the project changes the character of the community and
lowers property values. She asked that Council take its time to work with the residents of
Newport Shores regarding this matter.
Bobby McDonald, Chair of the Orange County Veterans Advisory Council, spoke in support of
the housing project in Newport Shores. He urged Council to support veterans by voting in
favor of this matter.
Ak
Brent Duque, 254 62nd Street, spoke in opposition to the proposed project in Newport Shores
and listed his concerns. He commented on other homeless/low-income projects in the City and
alleged lack of Police control and crime -prevention efforts. He opined that Newport Shores has
become a "dumping ground" for Newport Beach and that the proposed project is a waste of City
funds as it will only help twelve people and will not make a difference. He alleged other
violations of Government Codes and asked Council to carefully consider the consequences.
Gina Luzzi, spoke in support of the proposed project noting that it will look better than it
currently does and that it will have an on-site manager to monitor compliance with City
ordinances. She opined that the complex should be for all seniors rather than seniors and
veterans.
David Tanner, 223 62nd Street, questioned whythe decision is being made today and opined
the City should wait until after the Housing Element update. He questioned why the
recommendations were made without the benefit of public input and asked that Council
continue the matter directing staff and the taskforce to consider public input and site
constraints received in responses to the RFP. He alleged that the City is getting into the
affordable housing business, questioned the City awarding large amounts of funds to small
rather than larger projects, and complained that he has not been given the adequate
opportunity to voice his eoncerns.
Nate Iott, 320 Prospect Street, noted his familiarity with housing needs and related challenges.
He referenced the City's General Plan in terms of its goals and expressed concerns regarding
public safety, and persons with mental illness and substance abuse. He noted there are no
requirements to demonstrate that residents of the facility will be "clean and sober" and that
there will be no on-site, qualified mental health professional. He addressed lack of necessary
amenities and felt this project is a wasted opportunity to revitalize West Newport and other
areas in the City.
Arym Diamond, 202 Canal, opined that the City is attempting to "ram this project down the
throats" of its residents and asked that the matter be delayed. He alleged lack of public input
and expressed concerns with investing money in a twelve -unit parcel rather than on sites with
higher densities.
Brian Burlingame, Veterans Coordinator, Vanguard University, Costa Mesa, spoke in support
of the project and of the importance of helping veterans. He mentioned that having seniors and
veterans together, provides a perfect opportunity for mentoring and urged Council to do the
right thing for the City's seniors and veterans.
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Gary Reasoner, 259 62nd Street, expressed concerns with a lack of transparency in this process
and the term of the agreement. He suggested allocating the money to a better location where
more people will be assisted, for the same amount of money.
Howard Rich, Newport Shores board member, commented on his experience in Vietnam and
noted the many issues of returning veterans. He stated that it is a community duty to give
them all the support they need and spoke in support of the proposed projects listing its many
benefits. He spoke on behalf of the board noting that there was little community outreach and
urged the City to correct that in the future.
Tom Neville, 6001 Coast Boulevard, commented on residents of the building and on the
beneficiaries of the project. He spoke in opposition to the project and expressed concerns with
the lack of public input.
Jeremy McKeehen spoke of his experience as a ve^an, and of the importance of the
community helping them to grow and get to the next level in their development.
Michael Daily, 238 62nd Street, commented on the lack of notice to residents of Newport Shores
and asked that Council continue this matter for increased public input. Additionally, he opined
that the proposed is not a good use of the Affordable Housing Funds and suggested the City put
out another RFP and get additional qualified proposals.
Teresa Iott, 320 Prospect, suggested the funds couid be better used by helping additional people
and expressed concerns regarding the term of the agreement, She spoke in opposition to the
project and urged Council not to approve it.
Chris Mergil spoke regarding his background ani experience in the military and in support of
the proposed project. He noted that he sees this as an opportunity to help twelve people who
have placed their lives on hold, to help the greater good. While he understands resident
concerns, he also considers the human factor and urged Council to approve the project.
Daniel Page, Costa Mesa, spoke of his experience in the U.S. Navy and spoke in support of the
proposed project.
Johnny Rimlinger, 326 62nd Street, spoke in support of veterans but felt that the money could
be better used by helping more people.
Leslie Long, 419 Prospect, expressed concerns with the lack of public notice for this item. She
urged Council to continue this matter for increased public input and clarity, commented on the
term of the agreement, and believes there are too many "unknowns".
Scott DeFreitas, 355 Walnut, suggested maximizing the available funds to help as many people
as possible. He commented on the cost per unit and felt that costs are too high.
Ryan Long, 419 Prospect, asked that Council continue the matter for increased public input
and urged that the City maximize the funds to help more people.
Steve Foley, building owner, spoke in support of veterans and in support of the project.
Brooke Horgan, 241 Walnut, commented on the high unit cost of the proposed project and
expressed concerns with lower property values and suggested other areas in the City that
would be more suitable for same. She spoke in opposition to the proposed project.
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David Tanner, 6001 Coast Hwy., spoke in opposition to the proposed project. He noted that the
units are very small and opined there are better ways of spending City funds.
Jill Hunt, 251 Prospect, asked that Council consider the concerns of the community and
expressed concerns with the lack of noticing, public input on this matter and on the amount of
money allocated to the project. She stated there are better ways to spend the funds and urged
Council to listen to the community.
Lindsey Watson, Huntington Beach, commented on her experience with residents of the units
and spoke in support of veterans. She felt that the money could be better spent to help more
veterans.
Brian Amendt, Newport Channel Inn, reported receiving no notice for this matter and
expressed concerns regarding impacts to his property and his guests. He urged Council to
ensure that "good" people will reside at the site and not people who will bother his guests.
Ak
Joe Trimble spoke in opposition to the proposed project adding that it creates no additional
housing. He felt that the money could be better used to help more people and noted that the
project provides no real benefit except for the developer. He suggested that the City reopen the
RFP process and select a project that actually expands the City's affordable housing stock.
d
Han Smith, 214 Orange Street, referenced the Civic Center audit and the amount of money it
will cost the City. He commented on them y to be allocated for twelve affordable housing
units and expressed confusion.
Everette Phillips, 206 Walnut Street, commented on other projects in the City, on claims made
by the developer regarding the need for Conditional Use Permits. He felt that Council should
consider more information about the matter than is currently available.
City Attorney Harp reported that there are no legal impediments to moving forward with the
subject agreements.
Community Development Director Brandt reported that staff has evaluated all 3 proposals for
consistency with thNeneral Plan's Housing Element and the related Code requirements and
has found that the City is in full compliance.
Council Member MuldoonTioted that sex offenders are not currently precluded from living near
a park. He expressed sympathy for those who will be displaced but noted that he is inclined to
support staff s recommendations.
Motion by Council Member Muldoon, seconded by Council Member Curry, to a) find
the projects to be funded to be categorically exempt pursuant to Title 14 of the California Code
of Regulations (Section 15301, Article 19 of Chapter 3, Guidelines for Implementation of the
California Environmental Quality Act) under Class 1 (Existing Facilities); b) approve and
authorize the Mayor and City Clerk to execute the agreement with Community Development
Partners (C-6377) and approve Budget Amendment No. 16BA-013, transferring $1,975,000
from the Affordable Housing Reserve Account to fund the Newport Shores Project; c) approve
and authorize the Mayor and City Clerk to execute the agreement with Habitat OC Partners
(C-6378) and approve Budget Amendment No 16BA-013, transferring up to a maximum
$600,000 from the Affordable Housing Reserve Account to fund the Senior Home Repair
Program; and d) authorize staff to negotiate an agreement with Seaview Lutheran Plaza
(C-6379) for the remaining balance of approximately $1.6 million of the Affordable Housing
Fund for the proposed renovations and accessibility improvements.
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Council Member Petros noted this is the granting of funds for the purpose of affordable
housing. He reported there are approximately 300 affordable units that are slated for the
airport area. The Banning Ranch project will also have an affordable element to it. The City is
on a multi -front effort to provide a number of housing opportunities for people who would like
to live in Newport Beach. He felt that the developers failed in terms of public outreach but
stated that does not diminish the benefit of the proposed project.
Council Member Curry expressed support for the item and noted the importance and
responsibility of the City to do its part in ensuring that the housing needs of veterans are
addressed. He felt that having veterans in the community will be a benefit.
Mayor Selich noted his surprise and stated that supporting veterans is one of the most
worthwhile things that a City can do. While he agreed there should have been better notice,
Mayor Selich stated his support of the motion.
Mayor Pro Tem Dixon agreed with Council colle
the motion.
Council Member Duffield spoke in support of the
The motion carried by the following roll call vote:
i support of the project and
Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Peotter (excused) 40
Motion by Council Member Curry, seconded by Mayor Pro Tem Dixon, to continue with
the agenda past 11:00 p.m lab,
�
The motion carried by the following roll11 vote:
Ayes: Council Member Petros, Cou it Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Peotter (excused)
26. Landscape Maintenareement for Parks and Facilities (C-6375) [38/100-2015]
Motion by Council Member Curry, seconded by Council Member Muldoon, to
a) approve and authorize the Mayor and City Clerk to execute the Maintenance Agreement
with Mariposa Landscapes, Inc. for Landscape Maintenance of City Parks and Facilities for an
amount not to exceed $1,975,000 per year; and b) approve Budget Amendment No. 16BA-014,
appropriating an additional $165,397 into the FY 15-16 Parks Division budget.
Jim Mosher stated he was surprised to see there was no financial consequence to Pinnacle
backing out of their contract. He suggested adding a clause in the current contract of possible
consequences if the new contractor fails to deliver on same.
The motion carried by the following roll call vote:
Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Peotter (excused)
XX. MOTION FOR RECONSIDERATION - None
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City of Newport Beach
Regular Meeting
November 24, 2015
XXI. ADJOURNMENT - Adjourned at 11:24 p.m. in memory of Dan Steele
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
November 19, 2015, at 4:00 p.m. and on November 24, 2015, at 12:00 p.m. at 9809 SW Quail
Post Road, Portland, Oregon.
City Clerk
Recording Secretary
Mayor
Volume 62 - Page 519