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HomeMy WebLinkAbout07/26/2016 - Regular MeetingI. II. IV. V VI. CITY OF NEWPORT BEACH City Council Minutes Regular Meeting July 26, 2016 ROLL CALL — 6:00 p.m. Present: Council Member Peotter (arrived at 6:20 p.m.), Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon PUBLIC COMMENTS Jim Mosher encouraged the City Council to provide more detailed descriptions of Closed Session topics . He questioned the need for discussions with all ten labor associations, and believed that both conference with legal counsel matters need enhanced explanations. 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. CLOSED SESSION — 6:03 p.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, and Barbara Salvini, Human Resources Director; 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 ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) and (e)(1): 1 matter RECESS RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Volume 63 - Page 64 City of Newport Beach Regular Meeting July 26, 2016 VII. CLOSED SESSION REPORT - None City Attorney Harp announced that all members of the City Council were in attendance during Closed Session discussions. VIII. PLEDGE OF ALLEGIANCE - Council Member Duffield IX. INVOCATION - Council Member Petros X. • Fire Suppression on Newport Beach's Ocean Piers Deputy Fire Chief Duncan utilized a PowerPoint presentation to provide an overview of the Seal Beach Pier Fire of May 20, 2016, Newport Pier, Balboa Pier, built in fire protections, challenges relative to access, various scenarios, and fire boat resources. In response to Mayor Dixon's question, Deputy Fire Chief Duncan discussed the need to breach the concrete, delaying firefighting. XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEMS) Council Member Petros reported that he participated in the July 9 Pier -to -Pier swim. In addition, he announced the upcoming Don Burns Annual Swim at Big Corona del Mar Beach on August 20. He discussed the meeting he attended with Mayor Dixon and Public Safety, Public Works, and members of the public on issues related to bicycle and pedestrian safety around schools and announced that an item would be on the City Council's upcoming agenda. Council Member Curry congratulated the OASIS Senior Center staff on the Jimmy Buffet tribute band event. He announced the community forum on July 28, at 5:30 p.m., in the Newport Coast Community Center to interview the District 7 Council candidates. Mayor Dixon discussed the Community Development Department discussion on Mariners' Mile ideas. XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Amending the NBMC to allow for temporary displays of patriotic pennants over the public right-of-way on Balboa Island (Selich) Council Member Selich suggested bringing an item forward to amend the Newport Beach Municipal Code, and updated his request to read "Decorative" instead of "Patriotic." Motion by Council Member Selich, seconded by Council Member Petros, to bring the matter to a future agenda. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Volume 63 - Page 65 City of Newport Beach Regular Meeting July 26, 2016 XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 13 (Annual Report on Council Discretionary Grant Funds), Jim Mosher expressed concerns over the propriety of the discretionary grant funds. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the July 12, 2016 Study Session and Regular Meeting [100-2016] 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. ORDINANCES FOR ADOPTION 3. Adoption of Ordinance No. 2016-10 Amending Chapter 5.20 of the NBMC Entitled Pawnbrokers, Secondhand Dealers and Junk Dealers [100-20161 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Conduct second reading and adopt Ordinance No. 2016-10, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Chapter 5.20 Entitled `Pawnbrokers, Secondhand Dealers and Junk Dealers." CONTRACTS AND AGREEMENTS 4. Dolphin and Tamura Shallow Water Well Rehabilitations - Notice of Completion for Contract No. 5981 (Project No. 15W11) [381100-20161 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. (At the July 14, 2015 meeting, this project was found to be exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302); 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 the acceptance by the City Council. 5. City Radio Tower Rehabilitation -Award of Contract No. 7094-1 [381100-2016] a) Staff recommends the City finds this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; b) Approve the project drawings and specifications; c) Award Contract No. 7094-1 to Telcom, Inc. for the total bid price of $425,458.00, and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $42,500 (approximately 10 percent) to cover the cost of unforeseen work not included in the original contract; e) Authorize City Manager to execute a Reimbursement Agreement with the County of Orange (C-7094-2) for its contribution to the project on a form approved by the City Attorney; and f) Approve Budget Amendment No. 17BA-004 appropriating $184,000.00 from 800MhZ Equipment unappropriated balance to Account No. 75401-980000-16M13; $34,500 from Water Enterprise unappropriated balance to Account No. 70101-980000.16M13; $11,500 from Volume 63 - Page 66 City of Newport Beach Regular Meeting July 26, 2016 Wastewater Enterprise unappropriated balance to Account No. 71101-980000-16M13; and $25,000 from IT Equipment unappropriated balance to Account No. 76501-980000-16M13 for City Radio Tower Rehabilitation Project. 6. Seaview Lutheran Plaza Affordable Housing Grant (C-6379) [381100-2016] a) Find the project 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 SVLP; and c) Approve Budget Amendment No. 17BA-005 transferring $800,000 from the Affordable Housing Reserve Account to fund the Project. 7. School Resource Officer Program Agreement (C-3309) [381100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve the Agreement between the City of Newport Beach and the Newport -Mesa Unified School District to participate in the School Resource Officer Program ("Agreement"), and authorize the Mayor to execute the Agreement on behalf of the City. 8. Amendment No. One to Agreement for Temporary Laborer Services with Cathyjon Enterprises, Inc. DBA HB Staffing (C-6133) [381100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve the amended Amendment No. One to the Agreement with Cathyjon Enterprises, Inc. DBA HB Staffing for temporary laborer services, and authorize the Mayor and City Clerk to execute the agreement. 9. Amendment No. One to Agreement with Walt Harper for Landscape and Park Services Agreement (C-6394) [381100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the on-call maintenance/repair agreement with Walt Harper for landscape and park services to increase the total amount not to exceed by $60,000, and authorize the Mayor and City Clerk to sign the agreement. MISCELLANEOUS 10. Planning Commission Agenda for the July 21, 2016 Meeting [100-2016] Receive and file. 11. Adoption of City's Discrimination and Harassment Prevention Policy [100-2016] Continue the item to the September 13, 2016 City Council meeting. 12. Update on Water Use and Conservation Efforts June 2016 [100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. Volume 63 - Page 67 City of Newport Beach Regular Meeting July 26, 2016 13. Annual Report on Council Discretionary Grant Funds [100-20161 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. Motion by Mayor Pro Tem Muldoon. seconded by Council Member Peotter, to approve the Consent Calendar; and noting the continuance of Item 11 and the amendment to Item 8. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XVI. ITEM REMOVED FROM THE CONSENT CALENDAR - None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Hart Wurner urged the City Council to allow the encroachment at 119 Grand Canal on Balboa Island. He believed they would be singled out if required to remove the encroachment. City Manager Mff indicated the matter was on the City Council's August 9 agenda. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Petros reported on the July 25 Aviation Committee meeting, highlighting topics such as the impending FAA NextGen project for aligning departures at John Wayne Airport (JWA), height of departures at JWA, and progress on the health study with UCI. Council Member Selich stated the City's Local Coastal Implementation Plan was scheduled for the Coastal Commission's August meeting, but would probably be continued to September. XLY. PUBLIC HEARINGS 14. The Residences at Newport Place Appeal (PA2014-150) Located at 1701 Corinthian Way, 1660 Dove Street, 4251, 4253, and 4255 Martingale Way, and 4200, 4220, 4250 Scott Drive [100-20161 Community Development Director Brandt deferred to the applicant for the presentation. Britnae Jensen, Appellant, Development Manager representing Newport Place Residential, clarified the waiver of park dedication, amount of proposed commercial use, parking, and proposed changes. She presented a PowerPoint presentation depicting what was being appealed and what was originally acted upon by the Planning Commission, including project statistics, renderings of the project, building heights and setbacks, public park versus open space, and the development agreement. Richard Zeilenga, Stowell, Zeilenga, Ruth, Vaughn & Treiger LLP, representing the applicant, discussed the options before the City Council, including granting the appeal, continuing the hearing to September 27, 2016, or referring the project back to the Planning Commission. He requested that, if the item was referred to the Planning Commission, the City Council provide direction relative to whether a development agreement was required and about park ownership. In addition, he questioned why the Planning Commission disregarded the advice of staff and City Attorney. In a Volume 63 - Page 68 City of Newport Beach Regular Meeting July 26, 2016 comparison of development agreement triggers, he highlighted the differences between the Residences at Newport Place and Uptown Newport project. He reiterated that staff assured the applicant that no development agreement was required. He pointed out the project contained 30% affordable housing which provides a public benefit. He urged Council not to refer the project back to the Planning Commission. He presented a quote from Planning Commissioner Lawler indicating the variances would be considered if there was a development agreement and public open space. Council Member Petros noted that Commissioner Lawler indicated he was not speaking on behalf of the Planning Commission. Mr. Zeilenga noted that three Planning Commissioners indicated they wanted a development agreement despite staff recommendations. Community Development Director Brandt clarified that, if the City Council wished to refer that matter back to the Planning Commission, it would be to determine a recommendation to the City Council. She stated she had not seen the revised elevation and site plans. Mayor Dixon opened the public hearing. Bill Shopoff stated, in his years in development, he had never previously opposed a project, but. expressed that opposes this project because the setback should be from the park boundary, and he has issues with the one -acre park standards and substandard parking. He discussed the 30% affordable housing requirement. Dorothy Kraus, Vice President of Still Protecting Our Newport (SPON), believed the character of the Airport Area needed to be defined and not piecemealed. She discussed the components of a work -live environment and suggested developing a specific plan for the Airport Area. Jim Mosher pointed out that the project was a discretionary application and Council has the discretion to simply deny the project. He discussed the Planning Commission's hearings and concerns. He proposed that the applicant start the project over with something appropriate for Newport Beach. Laurie Tradia stated she did not feel the CEQA document met the requirements. Rick Roshan, part owner of 1499 McArthur Boulevard, expressed concerns about limited parking and the impact to adjacent properties. Mr. Zeilenga discussed the requested variances for setback, building height and the %-acre park. He addressed Mr. Mosher's comments regarding the Planning Commission's denial. He noted that it had been the practice of the Planning Commission to grant continuances. Hearing no further testimony, Mayor Dixon closed the public hearing. Council Member Selich discussed the comprehensive plan in the Airport Area. He indicated opposition to the project due to the proposed park, density, and redesign. He expressed his inclination to uphold the Planning Commission's decision. Motion by Council Member Selich, seconded by Council Member Petros, to a) deny project and uphold decision of Planning Commission; and b) approve Resolution No. 2016-98, A Resolution of the City Council of the City of Newport Beach., California, Denying the Appeal without Prejudice and Upholding the Planning Commission Denial of Planned Development Permit No. PL2014-001, Lot Merger No. LM2014-003, Affordable Housing Implementation Plan No. AH2015-001, and the Requested Park Waiver for the Residences at Newport Place Project Located at 1701 Corinthian Way, 4251, 4853 and 4255 Martingale Way, 4300, 4380 and 4250 Scott Drive and 1660 Dove Street (PA2014-150). Volume 63 - Page 69 City of Newport Beach Regular Meeting July 26, 2016 City Attorney Harp recommended the matter come back on August 9, 2016 to adopt the resolutions. Council Member Selich suggested modeling the City Council's resolution after the Planning Commission's resolution. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 15. Lido House Hotel Floor Area Expansion, Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061) (C-5567) [38/100-2016] Principal Planner Campbell introduced the item and highlighted the recommendations listed in the staff report. Mayor Dixon opened the public hearing. Tony Wrzosek, Vice President of Planning and Development, RD Olson Development, explained the request for additional floor area for Lido House Hotel. Jim Mosher discussed the importance of trust and the need to implement the Greenlight initiative. Principal Planner Campbell provided background on the General Plan amendment related to the hotel and explained that 20% was consistent with the City Charter. City Attorney Harp stated the original staff report disclosed the Greenlight initiative and confirmed that the proposed action would be in line with the City Charter. Sherman Stacey, attorney for RD Olson Development, discussed Measure B and the process to determine reuse of the property. He described the genesis of seeking additional square footage. He requested that Council uphold the recommendation of the Planning Commission. Hearing no further testimony, Mayor Dixon closed the public hearing. Council Member Selich expressed the opinion that Mr. Mosher did not understand Greenlight. Motion by Council Member Selich, seconded by Council Member Curry, to a) adopt Resolution No. 2016-88, A Resolution of the City Council of the City of Newport Beach, California, Adopting Addendum 1 to the Lido House Hotel Certified Environmental Impact Report (PA2016- 061); b) adopt Resolution No. 2016-89, A Resolution of the City Council of the City of Newport Beach, California, Approving General Plan Amendment No. GP2016-001 for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061); c) adopt Resolution No. 2016-90, A Resolution of the City Council of the City of Newport Beach, California, Approving Coastal Land Use Plan No. LC2016-001 for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061); d) adopt Resolution No. 2016-91, A Resolution of the City Council of the City of Newport Beach, California, Approving Site Development Review No. SD2016-005, Conditional Use Permit No. UP2016-015 for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061); and e) introduce Ordinance No. 2016-13, An Ordinance of the City Council of the City of Newport Beach, California, Approving Zoning Code Amendment No. CA2016-003 for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061), and pass to second reading on August 9, 2016. Volume 63 - Page 70 City of Newport Beach Regular Meeting July 26, 2016 The motion carried by the following roll call vote Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 16. Amendments to Coastal Land Use Plan and Policy L-12 and the Establishment of a Comprehensive Program for Properties Along East Ocean Front to Allow Encroachments and to Remove Unpermitted Development Beyond the Encroachment Area (PA2013-057) [100-20161 Community Development Director Brandt presented a PowerPoint presentation on the program, including project history, encroachment types, proposed solutions, excluded areas, Part One - Encroachment Program, encroachment fees, use of fees, Part Two — Implement Removal and Replacement Plan, having the City as lead, and recommendations. Council Member Peotter requested explanation on how the Coastal Land Use amendment fit in with the current amendment before the Coastal Commission. Community Development Director Brandt explained that the City was requesting an amendment to the Coastal Land Use Plan and the project would trail the current amendment. Mayor Dixon opened the public hearing. Jim McGee, representing the Balboa Peninsula Point Ocean Front Encroachment Committee, recommended that Council adopt the proposed resolution. He discussed the hearings and meetings regarding the project. Allen Steiner expressed confusion about the reference to tidelands. He stated he was willing to work with the City and volunteered to be on the committee to work with the eight excluded homes. Community Development Director Brandt explained that the City did not have property adjacent to the properties, therefore the tidelands reach the properties. Mayor Pro Tem Muldoon asked if the City could acquire the property for right-of-way. City Manager Kiff stated the City could ask the State Lands Commission. Hearing no further testimony, Mayor Dixon closed the public hearing. Community Development Director Brandt discussed Mr. McGee's letter and accepted the two recommendations on pages 16-23 and 16-25. Motion by Mayor Dixon. seconded by Council Member Petros, to a) determine that the Coastal Land Use Plan amendment, per California Public Resources Code Section 21050.9 and California Environmental Quality Act ("CEQA") Regulation Section 15265, exempts local governments from the requirements of preparing an environmental impact report or otherwise complying with CEQA in connection with the adoption of a Local Coastal Program; b) determine that the Council Policy L-12 Amendment and the East Ocean Front Comprehensive Encroachment and Removal and Replacement Program are exempt from CEQA pursuant to Section 15303 New Construction or Conversion of Small Structures of the CEQA Guidelines; c) adopt Resolution No. 2016.92, A Resolution of the City Council of the City of Newport Beach, California, Approving Coastal Land Use Plan Amendment No. LC2013-002, Council Policy L-12 Amendment, and the East Ocean Front Comprehensive Encroachment and Removal and Replacement Program (PA3013.057); and d) authorize staff to submit the Coastal Land Use Plan Amendment and the East Ocean Front Volume 63 - Page 71 City of Newport Beach Regular Meeting July 26, 2016 Comprehensive Encroachment and Removal and Replacement Program to the California Coastal Commission for review and action. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 17. Annual Update to Fees and Charges [100-20161 Mayor Dixon opened the public hearing. Jim Mosher noted the proposed fee schedule layout was clearer, but suggested the departments be listed alphabetically. He questioned why the fee schedule was adopted prior to the cost recovery ordinance and expressed confusion about the need to correct the ordinance. He discussed Resolution No. 2016-95 regarding fee waivers. In response to Mayor Dixon's question, City Attorney Harp explained that the ordinance would come back for second reading and that any typographical errors would be corrected. Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Council Member Curry, seconded by Council Member Petros, to a) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) adopt Resolution No. 2016-93, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Annual Update to Fees and Charges; c) introduce Ordinance No. 2016-14, An Ordinance of the City Council of the City of Newport Beach, California, Amending Exhibit A to Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery, Section 12.16.020 Related to Parking Penalties, Subsection 14.12.010(B) Related to Water Service Fees, and Ratifying Existing Library Fines, and pass to second reading on August 9, 2016; d) adopt Resolution No. 2016-94, A Resolution of the City Council of the City of Newport Beach, California, Establishing the Penalty Amounts for Parking Related Violations and Administrative Fees for Processing Delinquent Parking Violations and Rescinding Resolution No. 93- 53 and Resolution No. 94-29; and e) adopt Resolution No. 2016.95, A Resolution of the City Council of the City of Newport Beach, California, Establishing Special Event Hourly Rates and Waiving Certain Special Event Fees and Charges for The Library Foundation and Arts Foundation. Council Member Peotter thanked the Building Department for determining fixed fees where appropriate. He requested continued tracking of time. Assistant Community Development Director Jurjis confirmed that Planning and Building time was being tracked. City Manager Kiff and Mayor Dixon thanked staff for its work on the fees and charges. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon Nays: Mayor Pro Tem Muldoon XX. CURRENT BUSINESS 18. Direction Regarding Resolution No. 2015-44 Related to the Previously Proposed City Charter Amendment [391100-20161 Volume 63 - Page 72 City of Newport Beach Regular Meeting July 26, 2016 Council Member Curry noted that the proposed Charter Amendment would require a super majority vote of Council before it could place a tax increase measure on the ballot. He indicated that Council unanimously approved the matter three times. Motion by Council Member Curry, seconded by Council Member Petros, to a) adopt Resolution No. 2016-70, A Resolution of the City Council of the City of Newport Beach, California., Requesting the Board of Supervisors of the County of Orange to Consolidate a General Municipal Election to be Held on Tuesday, November 8, 8016, with the Statewide General Election to be Held on the Same Date Pursuant to California Elections Code Section 10403 for the Purpose of Submitting a Proposed Charter Amendment; b) adopt Resolution No. 2016-71, AResolution of the City Council of the City of Newport Beach, California, Setting Priorities for Filing Written Arguments Regarding City Measures, and Directing the City Attorney to Prepare an Impartial Analysis; c) adopt Resolution No. 2016.72, AResolution of the City Council of the City of Newport Beach, California, Providing for the Filing of Rebuttal Arguments for the City Measure Submitted to Voters at the General Municipal Election to be Held on Tuesday, November 8, 2016, Pursuant to California Elections Code Section 9285; d) designate Mayor Pro Tem Muldoon, Council Member Curry, and Council Member Selich to draft a Direct Argument for the ballot measure and any Rebuttal Argument, if needed; and e) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly. Substitute motion by Mayor Pro Tem Muldoon- seconded by Council Member Peotter, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) for the August 9, 2016 City Council meeting, bring back an amended Ballot Measure to include the "Newport Beach Taxpayer Protection Act" which require 5 of 7 votes of the City Council to propose taxes; and a Ballot Measure that requires 5 of 7 votes of the City Council to bring Certificate of Participations (COPS) to a vote; and c) also bring back the resolutions pertaining to the General Municipal Election scheduled for Tuesday, November 8, 2016, pursuant to City Charter Section 1000, at the August 9, 2016 City Council meeting. In response to City Attorney Harp's question, Mayor Pro Tem Muldoon stated he was proposing one ballot measure. Council Member Curry questioned the validity of the substitute motion as the additional language was not agendized. City Attorney Harp indicated the motion did not violate the Brown Act. Council Member Curry advised that 3 out of 4 California cities had the original proposed law, but none had the substitute law. He believed the substitute motion would limit the City's ability to conduct business, and stressed that he would oppose the substitute motion. Council Member Peotter believed COPS were a work around Proposition 13 and stated he favored full disclosure. In response to Mayor Pro Tem Muldoon's questions, Finance Director Matusiewicz defined Certificates of Participation (COPS). Mayor Pro Tem Muldoon asked if the City could lease property without COPS. Finance Director Matusiewicz noted the City could lease property, but not issue COPS. Mayor Pro Tem Muldoon asked if the City could function without COPS. Finance Director Matusiewicz stated his personal opinion was that it would be a bad idea to cut off that avenue. Mayor Pro Tem Muldoon expressed the opinion that the Finance Director had a bias and stated the City had other means of raising funds. He expressed concern that the opposition did not want the voters to decide. Volume 63 - Page 73 City of Newport Beach Regular Meeting July 26, 2016 Council Member Petros stated Finance Director Matusiewicz did not have a bias Council Member Curry asked if adopting the policy was in the best interest of the City. City Manager Kiff replied he did not feel comfortable responding without presenting the pros and cons of both proposals. Council Member Curry explained why leases worked. Council Member Selich stated he does not prefer either option and would rather have thoughtful discussion. The substitute motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon, Mayor Dixon Nays: Council Member Selich, Council Member Curry, Council Member Petros XVIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT -Adjourned at 9:21 p.m in memory of Retired Fire Chief James (Jim) Reed 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 July 21, 2016, at 4:00 p.m - 4& C �%� - City Clerk Mayor Volume 63 - Page 74