HomeMy WebLinkAbout07/25/2017 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
July 25, 2017
I. ROLL CALL - 4:00 p.m.
II.
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
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.
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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 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.
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IV. CLOSED SESSION - Council Chambers Conference Room
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 Juriis, Assistant Community Development Director
Lauren Weeding, 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.
VI. 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
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• Toured the Irvine Ranch Water District wastewater treatment plant
• 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]
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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.
RESOLUTIONS FOR ADOPTION
3. Employment Agreement with Charles Duncan for Fire Chief Services (C-8459-1) [381100-
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) [381100-20171
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, 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 [100-20171
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) 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) [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 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
family relationship with someone employed by the Huntington Beach Police Department.
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7. School Resource Officer Program Agreement (C-8510-1) [381100-2017]
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) [381100-2017]
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) [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) 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 [100-20171
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
[100-20171
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
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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.
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 1100-20171
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.
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) [381100-20171
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 Tent 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:
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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
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 Belieuin' 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 noted that the City Charter previously allowed resolution titles to 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-
20171
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.
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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.
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) [100-2017]
Council Member Avery recused himself due to property interests.
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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.
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 Planner 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 Planner 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.
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Council Member O'Neill expressed concern that this is being mandated by the State.
Mayor Muldoon opened the public hearing.
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 Senior Planner
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 (PA2017-069), 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 (PA2017-069).
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 1100-20171
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.
Volume 63 - Page 334
City of Newport Beach
Study Session and Regular Meeting
July 25, 2017
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
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 Driye�on
July 20, 2017, at 4:00 p.m. 7
ami,
Leilani I. Brown
City Clerk
Mayor
Volume 63 - Page 335