Loading...
HomeMy WebLinkAbout01 - MinutesAugust 8, 2017 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting July 25, 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 II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - None SS2. Presentation of Small Business of the Year Award by Assemblyman Matt Harper Assemblyman Matt Harper presented Figge Photography with an Assembly Resolution, and Council Member Dixon read and presented a proclamation to them. Mayor Pro Tem Duffield and Council Member Herdman commended the business. SS3. Presentation to Russell Surfboards on Their 50th Anniversary Council Member Dixon read and presented John Paul "JP" Roberts with the proclamation. SS4. Friends of the Library Check Presentation Friends of the Library President Amy Hunt and Bookstore Manager Wendy Frankel presented the City with a $250,000 check. SS5. Newport Beach and Company/Visit Newport Beach Annual Report/Presentation Mayor Pro Tem Duffield recused himself from Item SS5 since he conducts business with Visit Newport Beach. Debbie Snavely, General Manager Marriott Newport Beach Hotel and Spa & Chairperson of Visit Newport Beach & Newport Beach and Co., reviewed their annual report, introduced the Visit Newport Beach Executive Committee members in attendance, and discussed their purpose. Jonathon Vopinek, VP of Asset Management & Marketing for R.D. Olson Development, highlighted the Lido House Hotel project, which is scheduled to open February 2018. Gary Sherwin, President and CEO of Newport Beach and Company, discussed travel patterns, hotel average daily rates and comparisons within the County, the 2017 budget, group sales performance and room night production, industry recognition, brand promise and advertising, digital and international marketing, public relations, leisure marketing performance, Visit Newport Beach's total impact, Newport Beach and Company's structure, community resources and marketing partnerships, and critical issues (new hotels in the County, international instability, hotel renovations, group sales/meeting slowdowns), and new programing for Newport Beach TV. Volume 63 - Page 324 City of Newport Beach Study Session and Regular Meeting July 25, 2017 In response to Council questions, Mr. Sherwin discussed the importance of having more meeting spaces and the reason for the off-year reporting. Finance Director Matusiewicz reported on the City's Transient Occupancy Tax (TOT) and property tax amounts, and short- term rental issues. Mr. Sherwin further answered questions relative to the budgets, membership dues, importance of the Board of Directors, involvement with the Balboa Merchants Association and Balboa Island Museum and Historical Society, and the importance of Newport Harbor. Jim Mosher commented on the organization's membership dues, the Visit Newport Beach restricted fund, and the Newport Beach Christmas Boat Parade funding; and asked if they have other funds that are not reviewed by the City. SS6. Summary of Sewer Rate Proposal Municipal Operations Director Murdoch provided the staff report, highlighting the use of sewer rates, rate history, the proposed increase and rationale, use of the Enterprise Fund, fund balance, the current and proposed rate structure, the revenue and expenditure balance, typical bill impacts, and next steps. Municipal Operations Director (MOD) Murdoch answered Council questions relative to the fund balance as it relates to the target reserve balance, the automatic CPI increase, Proposition 218 process, the Sewer Master Plan history and purpose, Capital Improvement Program (CIP) funding, sewer reserve policies, the Hazard Mitigation Plan, the use of the Enterprise Fund, the potential for changing the proposed rate increase, the new billing system, and the 60/40 rate structure. He emphasized the risk of not increasing the rates, the potential impacts to the Harbor due to pump station failures, and the use of the General Fund transfer money for CIP uses. Finance Director Matusiewicz provided information relative to the reserve policy, the purchase of bonds, and the City's financial rating. City Manager Kiff confirmed that the recession had something to do with the previous Council not raising the sewer fees since they had raised water fees. John Farnkopf, HF&H Consultants LLC Senior Vice President, clarified the 80/20 rule relative to the cost structure. Council Member O'Neill pointed out that the increases never occurred in 2010 pursuant to the Sewer Master Plan, highlighted the compounding structural deficit, and emphasized that the City should not use General Fund to cover sewer fee related shortfalls. Jack Skinner expressed the importance of water quality in the Bay, touted Mr. Murdoch's expertise, and expressed concern with the threat of a sewer system failure. Nancy Skinner commended MOD Director Murdoch and Finance Director Matusiewicz, and expressed hope that the sewer rate will be increased. Jim Mosher asked if the City's facilities are being used efficiently and if the increase is too modest. III. PUBLIC COMMENTS Jim Mosher provided comments relative to the Closed Session agenda, believing it was not informative. 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 Volume 63 - Page 325 City of Newport Beach Study Session and Regular Meeting July 25, 2017 A. 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, and Peter Brown; Labor Negotiators. Employee Organizations: Newport Beach Police Association (NBPA); and Newport Beach Police Management Association (NBPMA). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) (e)(1)): 2 matters C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 2807 Newport Boulevard, Newport Beach, CA 92663 (APN 047-0310-22) Agency Negotiator: Seimone Jurjis, Assistant Community Development Director Lauren Wooding, Real Property Administrator Negotiating Party: MNG Newport Beach, LLC Under Negotiation: Instruct negotiator as to price and terms of payment. D. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter County of Orange v. Air California; City of Newport Beach v. County of Orange, et al. U.S. District Court Case No. CV 85-1542 TJH (MCx) V. RECESSED - 6:15 p.m. IL VL RECONVENED AT 7:04 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 Herdman X. INVOCATION - Pastor Jordan Hansen, Newport Mesa Church XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member O'Neill: Attended the Crystal Cove Community Emergency Response Team (CERT) Program meeting Attended the Pacific Symphony performance Toured the Irvine Ranch Water District wastewater treatment plant Volume 63 - Page 326 City of Newport Beach Study Session and Regular Meeting July 25, 2017 Attended the Corona del Mar Residents Association meeting Represented the City at the Orange County Fair for Newport Beach Day Wished his wife "Happy Anniversary" Wished Council Member Herdman "Happy Birthday" Council Member Peotter: Toured Big Canyon Reservoir Council Member Dixon: Commended the City Arts Commission for the Pacific Symphony performance Council Member Herdman: Displayed photos of the Park Avenue Bridge (aka Little Balboa Island Bridge) Grand Opening Attended the Newport Beach Chamber of Commerce Spirit Award Ceremony Provided an update at the Newport Beach Chamber of Commerce Government Affairs meeting Attended the 1/1 Marines Foundation car wash Attended the Junior Lifeguards hot dog dinner Attended the Speak Up Newport meeting where they discussed the Animal Shelter Foundation Attended the Big Canyon Ribbon Cutting Ceremony Mayor Muldoon: Attended the Park Avenue Bridge Grand Opening XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA Moving the Finance Committee's Citizen Appointees to Terms that Align with Fiscal Years; Correcting the Times at which the Finance Committee Meets (O'Neill) The City Council unanimously concurred to place the matter on a future agenda. Future Study Session on Drone Policies, Including Policies in Other Cities (Dixon, Peotter) The City Council unanimously concurred to place the matter on a future agenda. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR City Manager Kiff provided a report relative to Item 3 (Employment Agreement with Charles Duncan for Fire Chief Services); and noted that an ordinance for introduction has been provided relative to Item 13 (Establish Pilot Program Allowing A -frame Signs in Lido Marina Village and Initiate Zoning Code Amendment Allowing A -frames Long -Term). Deputy City Manager Finnigan requested that Recommendation b to Item 15 (Newport Beach & Company's 2018 Destination Marketing Plan Supplement, the FY 2017-2018 Visit Newport Beach, Inc. Budget, and the Newport Beach Tourism Business Improvement District (NBTBID) Fiscal Year 2017-2018 Annual Report and Budget) be amended to read, "Authorize a waiver of the timeline provided in Section 3 of the NBTBID Management Agreement." XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the July 11, 2017 City Council Meeting [100-2017] Waive reading of subject minutes, approve as amended, and order filed. Volume 63 - Page 327 City of Newport Beach Study Session and Regular Meeting July 25, 2017 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. RESOLUTIONS FOR ADOPTION 3. Employment Agreement with Charles Duncan for Fire Chief Services (C-8459-1) [38/100- 20171 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) Adopt Resolution No. 2017-46, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the City Manager to Execute an Employment Agreement Between the City of Newport Beach and Charles Duncan for the Services of Fire Chief and to Adjust the Salary Range for Fire Chief Commensurate with the Employment Agreement. 4. Resolution No. 2017-47: Adopting a Memorandum of Understanding with the Association of Newport Beach Ocean Lifeguards (ANBOL) and Establishing Salary Ranges (C-2058) [38/100-2017] 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) Adopt Resolution No. 2017-46, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding Between the City of Newport Beach and the Association of Newport Beach Ocean Lifeguards and to Adjust the Salary Ranges to be Commensurate with the Contract Provisions, for the period July 1, 2017 through June 30, 2021 and establishing salary ranges for the Lifeguard I, II and III classifications. 5. Resolution No. 2017-48: Reimbursement for Assessment District Project Costs Incurred Prior to Issuance of Tax Exempt Obligations [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; and b) Adopt Resolution No. 2017-48, A Resolution of the City Council of the City of Newport Beach, California, Regarding its Intention to Recover Costs Associated with the Issuance of Tax Exempt Obligations for Assessment Districts. Mayor Muldoon recused himself from Item 5 due to his employment in the telecommunications field. CONTRACTS AND AGREEMENTS 6. Contract Approval for Public Safety Helicopter Services Between the Cities of Newport Beach and Huntington Beach (C-8285-1) [38/100-2017) 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; and b) Approve the services agreement for public safety helicopter support between the City of Huntington Beach and the City of Newport Beach ("Agreement"), and authorize the Mayor to execute the Agreement on behalf of the City. Council Member O'Neill recused himself from Item 6 in an abundance of caution due to a family relationship with someone employed by the Huntington Beach Police Department. Volume 63 - Page 328 City of Newport Beach Study Session and Regular Meeting July 25, 2017 7. School Resource Officer Program Agreement (C-8510-1) [38/100-2017] 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) 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. Agreement for On -Call Streetlight Electrical Repair Services with Siemens Industry, Inc. (C-8511-1) [38/100-2017] 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) Approve the agreement with Siemens Industry, Inc. for on-call streetlight electrical repair services for a five-year term for a not to exceed amount of $2,500,000, and authorize the Mayor and City Clerk to execute the agreements. 9. Agreement with ES Engineering Services, LLC for Landfill Gas Control System Operation and Maintenance Services at Newport Terrace Landfill (C-8512-1) [38/100- 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; and b) Authorize and approve the Mayor to execute a professional services agreement with ES Engineering Services LLC for an amount not to exceed $472,500 over a three-year contract term. MISCELLANEOUS 10. Planning Commission Agenda for the July 20, 2017 Meeting [100-2017] Receive and file. 11. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library and Appropriate Funds to the Library's Fiscal Year 2017/2018 Maintenance and Operation Budget [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) Approve Budget Amendment No. 18BA-001 to increase revenue estimates by $250,000 in Account 0106052-511080 (Friends of the Library Donations) and to increase expenditure estimates by the same amount in Division 0106052 (Friends of the Library) and Division 01060604 (Literacy Services): Increase expenditure accounts: 0106052-841052 Library Materials $190,000 0106052-841004 Programming $ 55,000 01060604-841004 Literacy Programming $ 4,000 01060604-841052 Literacy Materials 1,000 Total $250,000. 12. Newport Coast Local Coastal Program and Planned Community Amendments Initiation [100-2017] a) Find that the action is not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2) and 15060(c)(3); and b) Initiate amendments to the City's certified Local Coastal Program and the Newport Coast Planned Community Development Plan to incorporate Newport Coast into the City's certified Local Coastal Program. Volume 63 - Page 329 City of Newport Beach Study Session and Regular Meeting July 25, 2017 13. Establish Pilot Program Allowing A -frame Signs in Lido Marina Village and Initiate Zoning Code Amendment Allowing A -frames Long -Term (PA2014-054) [100-20171 a) Find the project is categorically exempt under Section 15303, of the State CEQA (California Environmental Quality Act) Guidelines - Class 3 (Construction or Conversion of Small Structures); b) Initiate an amendment to the Newport Beach Municipal Code allowing A -frame signs in Lido Marina Village; and c) Introduce No. Ordinance No. 2017-12, An Ordinance of the City Council of the City of Newport Beach, California, Temporarily Allowing A -frame Signs in Lido Marina Village, and pass to second reading on August 8, 2017. 14. Proposed Sewer Rates [100-20171 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; b) Review the results and proposed recommendations of the sewer rate study; c) Direct staff to send rate notices to customers in compliance with Proposition 218; and d) Set the date of September 12, 2017, for tabulation of protests and conduct a public hearing of proposed rates. wp_ 15. Newport Beach & Company's 2018 Destination Marketing Plan Supplement, the FY 2017-2018 Visit Newport Beach, Inc. Budget, and the Newport Beach Tourism Business Improvement District (NBTBID) Fiscal Year 2017-2018 Annual Report and Budget (C- 4961) [38/100-20171 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) Authorize a waiver of the timeline provided in Section 3 of the NBTBID Management Agreement; c) Receive and file Newport Beach & Company's 2018 Destination Marketing Plan Supplement and the Performance Standards Report; d) Review and approve, as presented, VNB's FY 2017-2018 budget; e) Review and approve, as presented, NBTBID's FY 2017-2018 Annual Report; and f) Review and approve, as presented, NBTBID's FY 2017-2018 budget. Mayor Pro Tem Duffield recused himself from Item 15 since he conducts business with Visit Newport Beach. 16. Annual Formal Reporting of Council Discretionary Funds [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; and b) Receive and file. Motion by Mayor Pro Tem Duffield, seconded by Council Member Peotter, to approve the Consent Calendar; and noting the recusals by Mayor Muldoon on Item 5, Mayor Pro Tem Duffield on Item 15, and Council Member O'Neill on Item 6; the amended recommendation to Item 15; and the introduction of an ordinance to Item 13. 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 XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None Volume 63 - Page 330 City of Newport Beach Study Session and Regular Meeting July 25, 2017 XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Chad Kroeger expressed his desire to have cities build a Paul Walker statue and the nation to change the U.S. National Anthem to Don't Stop Believin'by Journey. Diane Blaisure, Newport Citizens for Responsible Growth, expressed concerns with the change in the proposed project for the Corona del Mar High School Sports Complex. Jim Mosher believed there is confusion about Council's actions if they are not restated before taking the vote, and requested public comment opportunities be provided if Council discusses non -agenda issues and resolution titles be read similar to ordinance titles. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill noted that "Chad Kroeger and his brother" have made national news delivering the same speech to other cities. Council Member Herdman reported on Aviation Committee and Water Quality/Coastal Tidelands Committee meetings. XIX. PUBLIC HEARINGS 17. Resolution Amending Rent for Commercial Tidelands Uses in Newport Harbor [100- 2017] Mayor Pro Tem Duffield recused himself from Item 17 due to a business property he uses on the commercial marina. Assistant Community Development Director Jurjis provided information relative to reducing the existing marina rates, the rate history since 2012, examples of the commercial rate changes, how the rate affects fuel dock business and the rationale behind the fuel dock rate, and revenue comparison and uses. Discussion ensued relative to finding out if the three fuel dock businesses have a preference between paying a flat rate vs. a base rate plus a usage fee, in order to make it revenue -neutral. In response to Council questions, Assistant Community Development Director Jurjis and City Manager Kiff discussed the differences in the appraisals, the median rate, the 2012 rate increase, and the freezing of the rates in 2015. They confirmed there would be no rate increases proposed tonight and that the Rental Rate table in Attachment A of the Resolution should be amended to read, "Fuel Docks — Greater of base rent or percentage rent, percentage rent calculated at $0.015 per gallon up to 100,000 gallons per year, and $0.02 per gallon over 100,000 gallons per year." Mayor Muldoon opened the public hearing. Michael Morgan requested and received clarification relative to the rates adopted in 2012, when frozen in 2015, and those proposed today; and requested that the 2015 rates not be unfrozen. Jim Parker, Port Calypso Marina, referenced an email he sent and asked that Council consider his suggestions for more equitable treatment of commercial marinas. Jim Mosher expressed confusion about the authority to freeze the rate increase and how the proposed resolution would work since the previous resolution was not repealed. Hearing no further testimony, Mayor Muldoon closed the public hearing. Volume 63 - Page 331 City of Newport Beach Study Session and Regular Meeting July 25, 2017 Mayor Muldoon expressed his opinion why this is not similar to residential docks or moorings. He pointed out that the recommendation would reduce the commercial marina rates in all the categories; however, understood how the rates could be perceived as increased if the 2015 rates were unfrozen. Council Member O'Neill clarified that, regarding fuel dock rates, he is not requesting an amendment to the proposed rate, but to have staff meet with the operators if they prefer a flat rate vs. a flat rate plus use fee, and bring back the information to Council for future discussion. Council Member Avery noted that the City analyzed the appraisal, the rates were not implemented for two years since the rates were too high, and the City wanted to charge fair rates. He expressed the opinion that the City has done its due diligence and the City Manager was trying to assist with the change by freezing the rates in 2015. He believed it is not the City's intention to cause hardship for the commercial marinas, but it was time to implement the new rates. Mayor Muldoon clarified for Council Member Herdman that the City was not provided direction from the State Lands Commission on this issue. Motion by Mayor Muldoon, seconded by Council Member Dixon, to a) find this project exempt from 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, because this project has no potential to have a significant effect on the environment; and b) adopt Resolution No. 2017-49, AResolution of the City Council of the City of Newport Beach, California, Adjusting the Rent Charged for Commercial Uses Located Upon Tidelands, including the amendment to the Rental Rate table in Attachment A of the resolution. Following more discussion relative to meeting with the fuel dock businesses in order to discuss their rate preference, Council Member O'Neill suggested not to change the recommendation tonight and go with staff recommendation since the flat rate amount has not been calculated yet. He requested staff determine what the revenue -neutral number (flat rate) is and offer that to fuel dock businesses as an option, which would require an amendment to the Resolution to come back before Council at a later date. After clarifying discussions between staff and Council, it was determined by Mayor Muldoon to remove fuel dock fees in its entirety and bring this individual item back to a future City Council meeting after staff is able to meet with fuel dock businesses for further input. 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 Muldoon Recused: Mayor Pro Tem Duffield 18. Amendment to Local Coastal Program to Establish a Comprehensive Program for Properties Along East Ocean Front to Allow Encroachments and to Remove Unpermitted Development Beyond the Encroachment Area (PA2013-057) [100-20171 Council Member Avery recused himself due to property interests. Deputy Community Development Director Wisneski provided the staff report and explained that the encroachment permit program is only for the sand areas along East Ocean Front. Mayor Muldoon opened the public hearing. Hearing no testimony, he closed the public hearing. Volume 63 - Page 332 City of Newport Beach Study Session and Regular Meeting July 25, 2017 Motion by Council Member Dixon, seconded by Mayor Muldoon, to a) determine that the Local Coastal Program amendment, per California Public Resources Code Section 21080.9 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) adopt Resolution No. 2017-50, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2013-002 Establishing the East Ocean Front Encroachment and Removal and Replacement Program; and c) authorize staff to submit the Local Coastal Program Amendment and the East Ocean Front Comprehensive Encroachment and Removal and Replacement Program to the California Coastal Commission for review and action. Council Member Peotter suggested that the City have Don Schmitz of Schmitz & Associates assist staff in working with the Coastal Commission. Mayor Muldoon believed staff should be able to use any lobbyist/consultant they choose. Discussion ensued relative to whether a contract already exists with a lobbyist/consultant, if a new one needs to be created and brought back to Council, or if the City Manager can approve the contract himself. In response to Jim Doman's question, City Manager Kiff displayed a map of the encroachment permit program area. Amended motion by Council Member Dixon, seconded by Mayor Muldoon, to a) determine that the Local Coastal Program amendment, per California Public Resources Code Section 21080.9 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) adopt Resolution No. 2017-50, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2013-002 Establishing the East Ocean Front Encroachment and Removal and Replacement Program; and c) authorize staff to submit, with the assistance of a lobbyist/consultant, the Local Coastal Program Amendment and the East Ocean Front Comprehensive Encroachment and Removal and Replacement Program to the California Coastal Commission for review and action. The amended 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 Recused: Council Member Avery 19. Amendments to the City's Regulations Regarding Accessory Dwelling Units (ADU) (PA2017-069) [100-20171 Senior Planer Murillo discussed the change in State law, different types of ADUs, ADU standards based on type, and the recommendations. In response to Council questions, Senior Planer Murillo and Assistant City Attorney Torres provided information relative to how it could be considered affordable housing, proposed deed restrictions, the approval process, the effect on the City, how homeowner associations still maintain control, and confirmed that this applies to single-family homes. Council Member O'Neill expressed concern that this is being mandated by the State. Mayor Muldoon opened the public hearing. Volume 63 - Page 333 City of Newport Beach Study Session and Regular Meeting July 25, 2017 Debra Allen, President of Harbor View Hills Community Association, questioned how applicants would know this does not supersede Covenants, Conditions and Restrictions (CC&Rs). Barry Allen believed the ordinance should include clearer language relative to CC&Rs. Hearing no further testimony, Mayor Muldoon closed the public hearing. In response to Council questions, Community Development Director Brandt and Planning Manager Murillo reported that State law does not supersede CC&Rs regarding ADUs, the applicant is advised to consult their HOAs, the ADU must conform to Building Codes, and the City defined existing structures and has the ability to change the minimum lot size for ADUs, as long as it can justify the change. Motion by Council Member O'Neill, seconded by Council Member Herdman, to a) find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA; b) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2017-11, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Zoning Code Amendment No. CA2017-003 to Implement New State Law Requirements Relating to Accessory Dwelling Units (PA201 7- 069), and pass to second reading on August 8, 2017; and c) adopt Resolution No. 2017-51, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2017-003 to the California Coastal Commission Implementing New State Law Requirements Relating to Accessory Dwelling Units (PA201 7- 069). Mayor Muldoon requested and received clarification from Assistant City Attorney Torres that the City's risk of having its own regulation is that the State could default the City to the State's standards which is less restrictive. 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 20. Adoption of the Complementary Paratransit Plan for the Balboa Peninsula Trolley and an Update on Ridership [100-2017] Deputy Community Development Director Wisneski provided the staff report and answered a question relative to how many vehicles may be off the road due to utilizing the trolley. Motion by Council Member Peotter, seconded by Council Member Dixon, to a) find this action exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a physical change to the environmental, directly or indirectly; b) adopt a Complementary Paratransit Plan as required by the Americans with Disabilities Act (ADA) and the Orange County Transportation Authority (OCTA) 2016 Project V Grant for the fixed -route local transit service (the Balboa Peninsula Trolley); and c) receive and file report on Balboa Peninsula Trolley use statistics. Mayor Muldoon opened the public hearing. Hearing no testimony, he closed the public hearing. 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 Volume 63 - Page 334 City of Newport Beach Study Session and Regular Meeting July 25, 2017 XX. CURRENT BUSINESS 21. Appointment of New Civil Service Board Member to Fill the Unscheduled Vacancy on the Civil Service Board [241100-20171 City Clerk Brown provided the staff report and read the ballots as follows: Howard Herzog — Avery, Dixon, Peotter, O'Neill Hugh Logan — Herdman, Duffield, Muldoon City Clerk Brown announced that Howard Herzog was appointed to the Civil Service Board for a term expiring June 30, 2020. XXI. MOTION FOR RECONSIDERATION - None XXII. ADJOURNMENT - 8:54 p.m. 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 20, 2017, at 4:00 p.m. Leilani I. Brown, City r, Kevin Muldoon, Mayor Volume 63 - Page 335