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HomeMy WebLinkAbout04/11/2017 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting April 11, 2017 I. ROLL CALL - 4:00 p.m. Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon H. CURRENT BUSINESS SSL Clarification of Items on the Consent Calendar - None SS2. DMV/Proclamation Recognizing Donate Life California Month John Whalen, Ambassador of One Legacy, thanked the City Council for the proclamation and for bringing awareness to organ donation. Rosemary O'Meeghan thanked the City Council and community for supporting organ donation. Beth Vogel discussed her experience with organ donation. Mayor Muldoon read the proclamation and presented it to them. SS3. Proclamation Recognizing National Library Week Library Services Director Hetherton, on behalf of the Board of Library Trustees, thanked the City Council for the proclamation. Mayor Muldoon read the proclamation and presented it to Board of Library Trustees Vice Chair Janet Ray and Trustee Doug Coulter. SS4. FEMA Open Pacific Coast Study and New Flood Rate Insurance Maps Deputy Community Development Director Jurjis introduced the item as a follow up to the July 2016 Study Session on the FEMA flood maps. Civil Engineer Ghosn presented a PowerPoint presentation, providing background on the mapping project, National Flood Insurance Program, proposed FEMA Flood Insurance Rate Maps, the Everest study, and seawall survey locations. In response to Council questions, Deputy Community Development Director Jurjis explained the colors denoted on the maps and discussed the base flood elevations in West Newport, Balboa Island, and East Newport. He reported that staff was presenting FEMA's data today, but would be requesting revisions to the maps. He stated flood insurance would be required for those in the flood zone. Council Member Dixon clarified that the purpose of attempting to revise the maps would assist the residents. Council Member Herdman stated the revisions would save him approximately $6,400 annually in flood insurance costs. Volume 63 - Page 236 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Mayor Pro Tem Duffield asked for an explanation on the base of the flood analysis. Deputy Community Development Director Jurjis stated the analysis was based on a 1% chance of a flood occurring in 100 years. Civil Engineer Ghosn continued the PowerPoint presentation, explaining the layout, staffs evaluation of the data, FEMA proposed Flood Insurance Rate Map (FIRM), proposed City revisions, and conclusion regarding FEMA using the bathtub methodology and the importance of the use of berms. Deputy Community Development Director Jurjis explained the next steps of requesting FEMA to update the maps to reflect the City's analysis. He discussed potential risks of including an additional 4,000 residents in the flood zone and raising development. Council Member Herdman asked if there would still be flooding if the seawalls were raised. Deputy Community Development Director Jurjis stated the maps were based on current data. In response to Council questions, Deputy Community Development Director Jurjis reported that the FEMA maps would require an additional 4,000 properties to obtain flood insurance. However, with staffs recommendation, that number would be reduced to 1,000. He noted that FEMA was funded by taxpayers through flood insurance. He explained that staff would submit the information to FEMA, with feedback expected back in 45 to 60 days. He noted it had been at least 30 years since the last survey was conducted. He stated that most other coastal cities were not taking action because they did not want to go up against the Federal government. He explained that new construction would have to be raised and remodels would also be affected, but explained the reduced risk of building above the flood line. Council Member Herdman thanked staff for working to relieve residents of the requirement to obtain flood insurance. In response to Mayor Muldoon's question, Deputy Community Development Director Jurjis explained staffs conclusion that berm location was more critical than height. However, staff would have to convince FEMA engineers that the City's berm program was sufficient. Mayor Muldoon stated the City could modify the berms based on FEMAs recommendations or appeal the decision. City Attorney Harp explained that the first step is to work with FEMA, then appeal, followed by litigation. Mark Tabbert asked about FEMA's sea level rise estimates. Deputy Community Development Director Jurjis stated FEMA did not project or predict sea level rise. Michele Brooks asked for clarification on the 22 -foot height limit of waves. She expressed concern about having to raise homes 4 to 13 feet above grade when historically there has been no issue. She stated the current administration might have different views and believed the jetties mitigated wave issues. She expressed concern how the change could impact property values and insurance costs. Mayor Muldoon suggested a mailer notifying residents in the flood zones of the outcome of the study. Deputy Community Development Director Jurjis stated there was a disconnect between what was seen and the micro -probability considered by FEMA. Ying Poon; Everest International Study, confirmed the jetties were not considered in the study. City Manager Kiff asked if the groin fields in West Newport were considered. Mr. Poon stated that wave modeling was conducted for the past 50 years. Volume 63 - Page 237 City of Newport Beach Study Session and Regular Meeting April 11, 2017 In response to Mayor Pro Tem Muldoon's question, Deputy Community Development Director Jurjis discussed structure height limitations. Barbara De La Pena discussed her difficulty with obtaining homeowners insurance. She expressed concern about impacts on property values due to new construction being forced to be built on stilts. She suggested that the coastal Mayors unite to work with FEMA. Brian Ouzounian discussed insurance on his properties, expressed concern with rebuilding Balboa Island, suggested joining forces with other cities, and asked if he could discuss the effects of the study on his properties. Council Member Dixon asked if the Coastal Communities Coalition was reviewing FEMA's flood maps. City Manager Diff stated he had not seen it on the agenda but it would be an appropriate topic for consideration. Paul Meyer, representing about 15 Balboa Island residents, expressed appreciation to staff for the information. SSS. Mooring Administration Concepts for 2017-18, Future Harbor Services City Manager Kiff presented a PowerPoint presentation explaining moorings, the City's contract with the Orange County Sheriffs Department (OCSD), the move towards a different model relying on technology, private contractors and City involvement, critical issues, and next steps. In response to Council Member Dixon's question, City Manager Kiff discussed Harbor Patrol duties and explained that, if the City took over mooring administration, Harbor Patrol was not interested in patrolling times of use nor fishing on the pier. Council Member Dixon discussed residents' request for controlling squatters on moorings. City Manager Kiff stated the goal was to be more customer oriented. Council Member Dixon commended staff and Council Members Avery and Duffield For working on the proposal. Council Member O'Neill asked if the notice to terminate the contract could be rescinded if the City was not prepared on July 1. City Manager Kiff stated the Sheriffs Department was glad to terminate the contact, but willing to assist with the transition. Council Member O'Neill expressed concern that the Sheriffs Department no longer wanted to perform the duties and asked if a financial analysis had been done. City Manager Kiff explained that the proposed model would focus on high use times and stated he anticipated it would be significantly less expensive. City Attorney Harp stated it would be necessary to work out an interim deal with the County. Council Member Avery clarified that the Harbor Patrol would continue to patrol and take action as necessary. He discussed ongoing complaints about noise and stated it was incumbent upon the City to enforce the Municipal Codes. He stated the idea was to have a City presence during high volume times with activity based patrols. He stated the summer would be used as a pilot program to take feedback and fine tune the program. Mayor Pro Tem Duffield noted staff was already involved in mooring activity, particularly derelict boats, sea lions and live -a -boards. He suggested also providing sea tows and vessel assistance to boat owners. He stated it was an experimental model anticipated to cost less. He suggested utilizing Marina Park and providing a service dock for mooring holders. He stated it was necessary to make mooring transfers easier and more transparent. Volume 63 - Page 238 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Council Member Peotter stated mooring transfers and temporary rentals could be determined via the My NB mobile application. He stated the goal was to take the next year to determine the best service model. Jim Mosher expressed concern that the existing contract was approved by the Full City Council and a major change was implemented by the City Manager. In response to Mayor Muldoon's question, City Manager Kiff stated he consulted with the City Attorney's Office who determined he could issue the notice. Brian Ouzounian expressed concern with the capital cost of purchasing boats. He expressed concern at the loss of the Harbor Patrol contract. He discussed the policy change during Natalie Wood's death and expressed concern with issues during the transition period. He discussed issues with sea lion management. Dan Gribble, Newport Mooring Association member, commended staff on the proposal, but questioned the line between the Harbor Patrol and City responsibilities. Paul Blank, Harbor Commission Chair, questioned the action requested of the Harbor Commission at its May meeting. Carter Ford, Newport Mooring Association, committed support and resources from the Newport Mooring Association, and expressed support for the proposal. He encouraged the City to clearly determine emergency response and thanked the City for its efforts. City Manager Kiff stated the proposal was related to mooring administration and enforcement of Title 17. He reported that Harbor Patrol would retain fire and emergency medical services, and the City contracted with Chuck South for sea lion mitigation. Harbor Resources Manager Miller stated Harbor Patrol is the first responder to sea lion issues, but South Mooring Company was used to augment sea lion services in the Fall. Council Member Avery pointed out the City was augmenting current Harbor services. III. PUBLIC COMMENTS - None City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - Council Chambers Conference Room A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director; Peter Brown, Esq., Negotiators. Employee Organizations: Association of Newport Beach Ocean Lifeguards (ANBOL) and Newport Beach Police Association (NBPA). C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957 (b)(1)) Volume 63 - Page 239 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk D. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6 (a)) Agency Designated Representative: Council Member Diane Dixon Unrepresented Employees: Dave Kiff, City Manager, Aaron C. Harp, City Attorney, and Leilani Brown, City Clerk. V. RECESSED - 5:27 p.m. VI. RECONVENED AT 7:02 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon VIII. CLOSED SESSION REPORT City Attorney Harp reported that there were no reportable actions taken. IX. PLEDGE OF ALLEGIANCE - Council Member Dixon X. INVOCATION - Dawn Anahid MacKeen, Author of The Hundred -Year Walk XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Mayor Muldoon presented a proclamation to the Newport Beach Tennis Club commending its service to the community. He requested a future agenda item to discuss moving the President Reagan statue to the Civic Center Park Sculpture Garden. Council Member O'Neill stated he attended the Police Appreciation Breakfast. He announced his open business hours and stated he would be reading and singing during National Library Week. Council Member Dixon requested a future item regarding parking strategies on the Peninsula and Mariners Mile. She discussed her attendance at the movie in Marina Park. She stated she and Council Member Herdman read stories during National Library Week. She stated that she and Council Member Herdman dedicated Sphere 1.12 in the Sculpture Garden in the morning, announced a document shredding event on May 6, 2017, thanked the Argyros Family for their donation to the Orange County Girl Scouts, and announced that a Finance Committee meeting will be held on April 13, 2017. Council Member Herdman announced National Library Week and complimented the Recreation staff on the Mayor's Egg Roll event. He stated he was continually impressed with the volunteers on all the Boards and Commissions and discussed the recent Water Quality/Coastal Tidelands Committee meeting he attended. He announced the District 5 Town Hall meeting on May 1, 2017. He requested a future agenda item relative to the Bayside Drive project. Volume 63 - Page 240 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Council Member Avery stated he attended the Police Appreciation Breakfast and Water Quality/Coastal Tidelands Committee meeting. Mayor Pro Tem Duffield stated he attended the Police Appreciation Breakfast. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Brian Ouzounian requested Item 4 be pulled from the Consent Calendar and discussed his efforts to rent his mooring. He requested allowing permittees to rent moorings and keep fees, allow guests to use the mooring at no charge/ no limit, and to use mooring rental fees as a credit on the mooring bill. He believed the fees were too high and further discussion was necessary. Mayor Muldoon explained the City Council's discussion and decision that occurred at the prior meeting. Jim Mosher expressed concern about allowing the Anaheim Ducks to advertise on the Newport Pier, believing this violates City Council Policy L-16. David Shanker, Anaheim Ducks employee, discussed the team's ties to the City and the goal to motivate the community to support the team. W. R. Dildine discussed the fireworks display by the Anaheim Ducks and their work with youth organizations. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the March 28, 2017 City Council Meeting [100-20171 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. ORDINANCE FOR INTRODUCTION 3. Waterfront Project Guidelines and Standards - Harbor Design Criteria, Commercial & Residential Facilities: Approve Revised Standards [100-2017] 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. Alternatively, determine this action is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment; b) Adopt Resolution No. 2017.22, A Resolution of the City Council of the City of Newport Beach, California, Amending the City's Waterfront Project Guidelines and Standards, Harbor Design Criteria - Commercial and Residential Facilities; and c) Introduce Ordinance No. 2017-8, An Ordinance of the City Council of the City of Newport Beach, California, Deleting Newport Beach Municipal Code Subsection 17.01.030(A)(2) and Amending Newport Beach Municipal Code Subsection 17.01.030(D)(1), 17.35.010(A), 17.50.040(A) and 17.50.050(D) Relating to the City's Waterfront Project Guidelines and Standards, Harbor Design Criteria - Commercial and Residential Facilities, and pass to second reading on April 25, 2017. Volume 63 - Page 241 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Mayor Pro Tem Duffield recused himself from Item 3 due to a lease property business he has on the waterfront. Council Member Avery recused himself from Item 3 due to a potential conflict with relation to his employer. ORDINANCE FOR ADOPTION 4. Harbor Mooring Regulation Modifications - Second Reading [100-20171 a) Determine this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(C)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the City Council finds the approval of this ordinance is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment; and b) Conduct second reading and adopt Ordinance No. 2017-7, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Title 17 Relating to Moorings. Mayor Muldoon voted "No" on Item 4. RESOLUTION FOR ADOPTION 5. Uptown Newport Planned Community Park In -lieu Fee Credits Determination Located at 4201-4301 Jamboree Road (PA2011-134) [100-20171 a) Determine the approval of park in -lieu fee credits is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and (3); and b) Adopt Resolution No. 2017-23, A Resolution of the City Council of the City of Newport Beach, California, Approving Park In -Lieu Fee Credits for the Uptown Newport Project (PA2011-134). CONTRACTS AND AGREEMENTS 7. Central Avenue Public Dock -Award of Contract No. 8197-1 (171-112) [381100-20171 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 4 Section 15303 Class 3 New Construction or Conversion of Small Structures of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve the project drawings and specifications; c) Award Contract No. 8197-1 to Associated Pacific Constructors, Inc. (APC) for the total bid price of $232,100.00, and authorize the Mayor and City Clerk to execute the contract; and d) Establish $23,900.00, approximately 10 percent, contingency amount to cover the cost of unforeseen work not included in the original contract. Mayor Pro Tem Duffield, Council Member Dixon, and Council Member Avery recused themselves on Item 7 due to their Newport Harbor Yacht Club membership. 8. Fire Station No. 4 Interior Renovation - Reject All Bids - Contract No. 8134-1 (161011) 1381100-20171 a) Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; Volume 63 - Page 242 City of Newport Beach Study Session and Regular Meeting April 11, 2017 b) Reject all bids received for Contract No. 8134-1; and c) Direct staff to re -advertise for bids at a later time. Council Member Herdman recused himself on Item 8 due to real property interest. 9. Fire Station No. 6 Apparatus Bay Replacement Project - Reject All Bids - Contract No. 6422-1 (16F11) [381100-20171 a) Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Reject all bids received for Contract No. 6422-1; and c) Direct staff to re -advertise for bids. 10. Request to Construct Improvements within Existing Flood Control Easement at 365 Newport Glen Court (C-8462-1) [381100-2017] 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) Waive City Council Policy L-6, Private Encroachments in the Public Rights -of -Way, to allow the construction of a 10 -ft wide by 40 -ft long pool within the existing flood control easement; and c) Direct Staff to enter into an Encroachment Agreement with Owners and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. 11. Amendment No. One to Maintenance/Repair Services Agreement with Duke's Root Control, Inc. for Sewer Line Root Control Services (C-4571) [381100-2017] a) Determine that the action is exempt from the California Environmental Quality Act (CEQ) 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 Maintenance/Repair Services Agreement with Duke's Root Control, Inc., for sewer root control services to increase the total not -to -exceed amount to $236,151 for the remainder of the term of the agreement, and authorize the Mayor and City Clerk to execute the amendment. 12. Amendment No. Two to On -Call Maintenance/Repair Services Agreement with GCI Construction, Inc. for Underground Utility Work (C-6148) [381100-20171 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. Two with OCT Construction, Inc. for utility on-call maintenance/repair services increasing the compensation limits by $125,000 for the remaining one-year period of the agreement, and authorize the Mayor and City Clerk to execute the amendment. MISCELLANEOUS 13. Planning Commission Agenda for the April 6, 2017 Meeting [100-20171 Receive and file. 14. Pending Coastal Development Permit Waiver for De Minimis Development, Located at 129 46th Street (PA2017-017) [100-20171 a) Determine this action is not a project as defined exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines Volume 63 - Page 243 City of Newport Beach Study Session and Regular Meeting April 11, 2017 because this action is to receive and file only and will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. 15. Nominations to Fill the Vacancies on the Harbor Commission [241100-2017] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Confirm the nominations of Ira Beer, Scott Cunningham, Jamshed Dastur, John Drayton, Paul Prioleau and Donald Yahn to fill the two vacancies on the Harbor Commission. 16. Request to Install a Banner on the Newport Pier (N2017-0156) [100-2017] 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) Waive City Council Policy L-16, Temporary Banners Extending Over the Public Right -of -Way, to allow the installation of a 71.25 -foot by 4.5 -foot Anaheim Ducks banner on the Newport Pier for a period of approximately two (2) months (mid-April to mid-June). Motion by Mayor Pro Tem Duffield, seconded by Council Member Herdman, to approve the Consent Calendar, except for the item removed (Item 6); and noting recusals by Mayor Pro Tem Duffield and Council Member Avery to Item 3, recusals by Mayor Pro Tem Duffield, Council Member Dixon and Council Member Avery to Item 7, recusal by Council Member Herdman to Item 8, and the "no" vote by Mayor Muldoon on Item 4. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 6. Revised Bus Parking Rates for Zone 29, the Balboa Pier Parking Lot [100-2017] Council Member O'Neill stated he supported school buses being charged the proposed hourly rate, but did not support commercial buses utilizing the same hourly rate. Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) adopt amended Resolution No. 2017-24, A Resolution of the City Council of the City of Newport Beach, California, Establishing a Revised Schedule of Rates for Users of Buses that Park in Off -Street Parking Meter Zone 29, Commonly Known as the Balboa Pier Parking Lot, to limit the parking fee to educational uses. Deputy City Manager Finnigan, in response to Council Member Dixon's question, explained bus parking in the Balboa Pier lot and efforts to incentivize use of the parking lot. Revenue Manager Tseng reported that buses were either driving up and down the Balboa Peninsula or parking illegally until asked to move. City Attorney Harp asked if school uses should be broadened to governmental uses. O'Neill stated he preferred to keep it to educational uses only and asked that, if the parking lot is still underutilized, staff bring back consideration of applying the rate to commercial uses. Volume 63 - Page 244 City of Newport Beach Study Session and Regular Meeting April 11, 2017 In response to Council Member Peotter's question, City Attorney Harp agreed that the new fee would apply to private buses if utilized for educational purposes. Marcel Ford, Balboa Village Merchants Association, indicated opposition to the full day $100 charge for commercial buses. The motion failed by the following roll call vote: Ayes: Council Member Avery, Council Member O'Neill, Mayor Muldoon Nays: Mayor Pro Tem Duffield, Council Member Herdman, Council Member Dixon, Council Member Peotter Motion by Council Member Peotter, seconded by Council Member Herdman, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) adopt Resolution No. 2017-24, AResolution of the City Council of the City of Newport Beach, California, Establishing a Revised Schedule of Rates for Users of Buses that Park in Off -Street Parking Meter Zone 29, Commonly Known as the Balboa Pier Parking Lot. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Nays: Council Member Avery XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS Paul Blank believed the residents of Corona del Mar were not adequately represented and served Council Member Peotter with a Notice of Intention to Recall him. Lynn Swain expressed displeasure with the performance of Council Member Peotter and supported the recall due to his support of the Museum House project and petition requirements. Lori Morris indicated support for the recall efforts of Council Member Peotter due to his political decisions. Ron Rubino indicated opposition to the proposal to replace the Newport Beach Tennis Club with housing. Ivan Mead concurred with Mr. Rubino and indicated opposition to rezoning the Newport Beach Tennis Club. John Draper commended the owner of the Newport Beach Tennis Club for his charitable donations, but urged retention of the recreational zoning. Mike Glenn thanked the majority of the City Council, particularly Scott Peotter, for being fiscally conservative and retaining the same number of fire rings. Council Member Peotter noted the issues being brought up were discussed in public during the 2014 election, believed a recall based on "political incorrectness" was inappropriate, and stated that voters had the right to run the recall, but it would be costly to the City. Volume 63 - Page 245 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Mayor Pro Tem Duffield took issue with the recall effort, believing that Council Member Peotter had done everything Team Newport advocated for during the 2014 election. He discussed the needs to reduce expenses due to the current Civic Center building, stated the Museum House project was a good project, and believed the petitioners sold it with fake facts. Mayor Muldoon expressed concern about the cost of a recall election. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill reported on the subcommittee to review City Council Policies. XVIII. PUBLIC HEARINGS 17. Local Coastal Program Amendment for the Lido House Hotel Floor Area Expansion Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061) 1381100-20171 Mayor Muldoon opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Herdman, seconded by Council Member Dixon, to a) find that all significant environmental concerns for the proposed project have been addressed in previously certified environmental documents; b) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2017-9, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Local Coastal Program Amendment No. LC2016-001 as Modified by the California Coastal Commission Related to the CV -LV Coastal Zoning District for the Lido House Hotel Project Located at 3300 Newport Boulevard and 475 32nd Street (PA2016-061), and pass on to a second reading on April 25, 2017; and c) adopt Resolution No. 2017-25, AResolution of the City Council of the City of Newport Beach, California, Forwarding Ordinance No. 2017-9 to California Coastal Commission for a Determination of Adequacy to Implement Local Coastal Program Amendment LCP-5-NPB-17-0010-1 as Modified by the Coastal Commission (PA2016-061). The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 18. Local Coastal Program Amendments [100-20171 City Manager Kiff requested the item be continued to refer the matter to the Planning Commission. XIX. CURRENT BUSINESS 19. Approval of a Service Agreement with Professional Parking Corporation for Transit Services for the Balboa Peninsula Shuttle/Trolley Project (17T13) (C-8306-2) [381100- 20171 Deputy Community Development Director Wisneski presented a PowerPoint presentation, providing background on the proposed trolley, 2015 feasibility study, trolley route, proposed operation, funding, and selected branding. Assistant City Engineer Sinacori discussed service provider selection, major components, next steps and operation, and recommended actions. Volume 63 - Page 246 City of Newport Beach Study Session and Regular Meeting April 11, 2017 In response to Council questions, Deputy Community Development Director Wisneski discussed the stakeholders interviewed. Council Member Herdman suggested providing the City Council with a progress report in July to provide an opportunity for further marketing. Assistant City Engineer Sinacori noted that a full summer trial was necessary for the grant funds. Deputy Community Development Director Wisneski anticipated that 40 parking spots would be available at Hoag Hospital, but additional spots could be obtained. She also discussed costs involved with the first year of operation and use of grant funds. Assistant City Engineer Sinacori indicated that staff was still working with the Orange County Transportation Authority (OCTA) on grant funding. Deputy Community Development Director Wisneski noted the City Council approved the cooperative agreement with OCTA and $130,000 from the Balboa Island Parking District. Mayor Pro Tem Duffield noted that the trolley's competitor had no trouble with the proposal. He believed the shuttle would alleviate parking for Catalina Flyer users and increase parking for residents. He commended staff for the proposal and obtaining the funds. In response to Council Member Peotter's question, Deputy Community Development Director Wisneski stated $35,000 had been spent to date. She estimated it would cost $22 per rider, including upfront costs and marketing. Council Member Avery indicated support for reducing traffic and increasing business in the area. He agreed that the trolley was expensive, but he would support the proposal. Maureen Cotton, President of the Central Newport Beach Community Association, thanked City staff for its efforts. She indicated support for the trolley to bring business to the area and reduce traffic. Jim Stratton believed the trolley would not compete with the Downtowner. He discussed the need to reduce the number of cars coming onto the Peninsula and, at the same time, encourage people to come to the Peninsula. He added the trolley would increase mobility for those already on the Peninsula. Mike Glenn believed the Downtowner was concerned with the trolley competing with his business, the trolley would cause congestion, Laguna Beach was getting rid of its trolley system to utilize Uber, and the cost per rider was too high. Council Member Dixon asked if Mr. Glenn was aware that he owed the City $600 for his public records requests and utilized 500 hours of staff time. Mr. Glenn indicated he had not been informed of the bill. George Schroeder discussed the different uses between the Downtowner and trolley. He suggested allowing a two-year trial of the trolley. Ashley Jacobs indicated opposition to the trolley. She commended Council Member Dixon for her efforts to alleviate traffic and congestion issues, but believed the 40 parking spaces at Hoag Hospital would be used by Catalina Flyer customers, therefore, traffic and congestion on the Peninsula would not be reduced. She encouraged the City Council to come up with a better solution. She indicated support for building a parking structure. W. R. Dildine stated he had been in the City 50 years and discussed his involvement in revitalization. He urged the City Council to try the trolley. Michael Jacobs believed the trolley would not be fully utilized. He questioned the measure of success following the pilot. Volume 63 - Page 247 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Marcel Ford, Balboa Village Merchants Association, discussed the parking spaces utilized by the Catalina Flyer, the need for shoppers in the Balboa Village, and suggested expanding the trolley to run throughout Newport Beach. Kelly Carlson, Vice President of the Balboa Village Merchants Association and business owner, discussed the need for parking, stated her customers have indicated they would take the trolley, and expressed the importance of getting people to Balboa Village. Council Member Dixon expressed appreciation to the merchants and residents for their input. She stated the trolley was presented to improve traffic, discussed efforts to work together to find solutions to traffic and parking issues, stated 88% of the funds would come from OCTA, and stated that the City would consider the program a success if it exceeded the anticipated 427 passenger count. Motion by Council Member Dixon. seconded by Mayor Pro Tem Duffield, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) approve a Service Agreement with Professional Parking, of Signal Hill, CA, for transit services for a not -to -exceed amount of $116,910.00 for the initial term of the agreement, with an option to renew the agreement in subsequent years through the year 2023. Mayor Pro Tem Duffield discussed the difficulty with using Uber on the Peninsula. Council Member O'Neill discussed the purpose of the OCTA and efforts to become smaller and nimbler. He stated he would support the trolley due to OCTA's support. In response to Council Member Peotter's questions, Deputy Community Development Director Wisneski believed additional spots could be obtained from Hoag Hospital. She stated the proposed trolley was similar to the system used in Dana Point. Council Member Peotter believed the Catalina Flyer and charter boat customers would benefit from parking at Hoag Hospital. He questioned whether the City could assist in making the Downtowner more successful. Deputy Community Development Director Wisneski explained OCTA measured success at 6 passengers per vehicle hour, then 9 in subsequent years. Council Member Peotter believed this could be a bad investment for taxpayers. Mayor Muldoon believed that the private sector was accomplishing milestones in transportation and, since there was a potential interference with an existing business, he would be voting against the agreement. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member O'Neill, Mayor Pro Tem Duffield Nays: Council Member Peotter, Mayor Muldoon Council Member Dixon left the meeting at 9:15 p.m. 20. Contract with Arts Orange County to Manage Phase III of the Sculpture Exhibition in Civic Center Park (C-8463-1) [38/100-2017] City Manager Kiff introduced the item and requested City Council direction on whether to proceed and requested clarification on funding sources. Volume 63 - Page 248 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Library Services Director Hetherton presented a PowerPoint presentation, explaining the rotating exhibition, project management, community engagement, private fundraising, and requested funding, including Visit Newport Beach's arts contribution. In response to Council questions, City Manager Kiff clarified funding from Transient Occupancy Tax (TOT) and the Tourism Business Improvement District (TBID). Library Services Director Hetherton discussed the proposed staff position. Mayor Muldoon discussed the tasks of the City Arts Commission and asked if staff was capable of fulfilling some of the duties. Library Services Director Hetherton explained the functions of the City Arts Commission and the consultant. Mayor Muldoon suggested using in-house staff and having the City Arts Commission take on some of the tasks. He requested the City Manager determine alternative funding. He indicated support for using funds from Visit Newport Beach, but could not support the contract. Council Member O'Neill asked if the last contract included de -installation. Library Services Director Hetherton stated de -installation of Phase 1 was a separate contract. Council Member Peotter suggested the President Reagan sculpture be included in Phase 3. He stated he supported the project last fall because the City Arts Commission promised to obtain private funding. He stated he would continue support, as long as the President Reagan sculpture was included. Council Member O'Neill stated the City Arts Commission spoke at the last study session discussing a substantial amount of funds for public art. He expressed concern about two-thirds of the funds going towards a consultant. He discussed the need for more private support. City Manager Kiff suggested staff come back with alternatives for installation and public input and review, and only have the consultant assist with the public side, not the installation side. Council Member Avery indicated support for art, but suggested the art be privately funded. He questioned the need for the consultant. Motion by Council Member Peotter, seconded by Council Member O'Neill, 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) approve Budget Amendment 17BA-030 appropriating $155,731.00 from the Visit Newport Beach Arts Contributions and expensing to 01060603-811008 for the project management contract and to fund artist honorariums for Phase III; and c) approve a contract with Arts Orange County for project management of Phase III of the Sculpture Exhibition in Civic Center Park for a total amount not to exceed $105,731.00, and authorize the Mayor and City Clerk to sign the agreement; as part of the scope of services, part of the planning should consider a recommendation for location of the President Reagan sculpture, $50,000 honoraria be from private sources in Phase IV, and reduce consultant cost by half, with staff handling installation. In response to Council questions, City Manager Kiff discussed the $150,000 promise from Visit Newport Beach. Council Member O'Neill believed the Visit Newport Beach agreement was broad but the promises should be retained. Council Member Avery asked if the location of the President Reagan sculpture would be determined by the City Arts Commission. Mayor Muldoon stated the City Arts Commission would make a recommendation to the Council. The motion carried by the following roll call vote: Ayes: Council Member Avery, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Volume 63 - Page 249 City of Newport Beach Study Session and Regular Meeting April 11, 2017 Nays: Council Member Herdman Absent: Council Member Dixon Council Member Herdman clarified that he supported the arts, the City Arts Commission, use of General Fund money for arts, and relocating the President Reagan statue. 21. Consider Proposed Decision of Administrative Law Judge (ALJ) Regarding a Disability Retirement in the NBFD [100-20171 Motion by Council Member Herdman. seconded by Council Member O'Neill, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) reject the decision of the ALJ, hear the matter without taking additional evidence, and have staff work with the parties on a schedule to submit written arguments to the City Council before a decision is made. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Absent: Council Member Dixon XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 9:45 p.m. in memory of the victims of the Armenian Genocide 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 April 6, 2017, at 4:00 p.m. The amended 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 April 7, 2017, at 9:00 a.m. i Volume 63 - Page 250