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HomeMy WebLinkAbout01/22/2019 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting January 22, 2019 I. ROLL CALL - 4:30 p.m. Present: Council Member Brad Avery, Council Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon Excused: Council Member Kevin Muldoon II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar Regarding the creation of a General Plan Update Steering Committee (Item 5), Mayor Dixon announced that she has formed an ad hoc committee, consisting of herself, Mayor Pro Tem O'Neill, and Council Member Brenner, to review the applications. She indicated there will be a one-week application period, reviewed the proposed timeline and selection process, and announced the first meeting of the committee is scheduled for February 13, 2019, at 6:00 p.m. at Marina Park. SS2. Orange County Business Council Certificate Presentation - Turning Red Tape Into Red Carpet Award Community Development Director Jurjis, utilizing a PowerPoint presentation, explained the award's nomination process and the four projects the City was nominated for. Connor Medina, Government Affairs Specialist for Orange County Business Council, congratulated the City on its nomination and provided the City with certificates. SS3. Short Term Lodging (STL) Update Community Development Director Jurjis, Code Enforcement Supervisor Contino and License Supervisor Navarette utilized a PowerPoint presentation to review the history of short term lodging (STL) in the City, including an overview of the property requirements, a map of the current STL rental areas, the number of current applications versus the number of properties eligible to rent short term, details on the City's contract with Host Compliance to review all internet advertisements for STL listings in Newport Beach, and an interactive map that allows users to find where the best STLs are located, as well as for neighbors to be aware of what homes in their neighborhood are being used for short term lodging. In response to Mayor Dixon's questions, License Supervisor Navarette gave a brief breakdown of Transient Occupancy Tax (TOT) billing and confirmed there is currently not a permit fee; however, staff is studying the process and will return to Council at a later date for discussion. Discussion ensued between staff and Council relative to details on the three STL enforcement divisions (Revenue, Code Enforcement and the Police Department), the citation process, the information Host Compliance provides to the City and how they analyze it, the number of properties that are currently compliant, and staff suggestions to aid in alleviating violations. Karen Carlson thanked City staff for their hard work, believed those STLs grandfathered in from Zone R-1 should be phased out, and suggested, if they have not applied for a renewal, they should be prohibited from being permitted as an STL. Don Abrams, Abrams Coastal Properties, commended staff for their review, and commented on taking away grandfathered -in rights. Volume 64 - Page 11 City of Newport Beach Study Session and Regular Meeting January 22, 2019 George Dirk asked staff to compare short-term rentals versus long-term rentals and suggested staff look at the history of the rental property to determine how to address violations. Mayor Pro Tem O'Neill asked for clarity regarding remodels and his concerns for allowing a small STL to be turned into a larger STL and making sure residents that are renting small portions of their homes are remaining compliant by getting an STL permit. In response to Council questions, Code Enforcement Supervisor Contino, License Supervisor Navarette, Community Development Jurjis and City Manager Leung, detailed how STL noise violations are handled, maximum number of guests in one unit, revocation of permits, and discussed having staff provide regular audits on properties that are in question. Mayor Dixon summarized the modification of staff suggestions, requested exploration of a maximum occupancy of rental homes, stepping up enforcement, and thanked staff for their hard work. Council unanimously agreed to move forward as discussed. In response to Mayor Dixon's question regarding how long the City was going to let Airbnb take advantage of not paying TOT, City Attorney Harp indicated that Airbnb has stated the business is a platform and not actively involved with STL. However, there have been recent developments in the law to provide more clarity in California. SS4. Planning and Adapting to Potential Sea Level Rise (SLR) and Coastal Flooding Community Development Director Jurjis, Associate Planner Nova, and Planning Manager Alford presented a PowerPoint presentation to discuss sea level rise, coastal hazards, the use of FEMA flood maps and regulations, flood protection approaches, design considerations for bulkheads and accessory structures, staffs suggestions, and the probabilistic projections based on the California Coastal Commission. In response to Mayor Pro Tem O'Neill and Mayor Dixon's questions, Associate Planner Nova explained the history of the Local Coastal Program and the reasons for staffs current suggestions using data from 2016, when the LCP was adopted. City Clerk Brown recused herself from discussions regarding the FEMA map due to property interest conflicts. Deputy Community Development Director Ghosn, utilizing a PowerPoint presentation, discussed the changes of the FEMA flood zone, particularly on the Balboa Peninsula, the overall zoning changes that will need to take place, demonstrated building design changes to take into consideration, and an upcoming public outreach meeting with FEMA. In response to Council questions, staff explained the remedies to be taken for Balboa Island and surrounding areas regarding FEMA flood zones, and reiterated what direction staff needs from Council. Council Member Duffield indicated he agreed with staff recommendations since it is State mandated; however, noted sea level rise since the 1950s has been very minimal. Nancy Gardner suggested the City have a comprehensive plan in place to save the beaches. Brion Jeannette, architect, voiced his concerns and suggestions about raising buildings and the consequences that may arise from doing this. Community Development Director Jurjis confirmed that after March 21, 2019, all projects along the coastline must comply with FEMA's height requirement guidelines. Volume 64 - Page 12 City of Newport Beach Study Session and Regular Meeting January 22, 2019 Mayor Dixon summarized the presentation and confirmed staff directives. Council unanimously agreed to move forward as discussed. SS5. Economic Update from Beacon Economics Christopher Thornberg, Beacon Economics, utilized a PowerPoint presentation to summarize the positives and negatives of the economic forecast for the City, State and Country, which included the Gross Domestic Product (GDP), labor markets, home prices, consumer debt, oil production prices, trade deficits, and the Federal Reserve policy. III. PUBLIC COMMENTS Without objection, Mayor Dixon combined Items III and XVI. City Attorney Harp announced there would be no Closed Session. IV. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Grace K. Leung, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director, and Peter Brown; Labor Negotiators. Employee Organizations: Newport Beach Lifeguard Management Association (NBLMA); Newport Beach City Employees Association (NBCEA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employees Association (NBPTEA); Newport Beach Employees League (LABEL); and Part Time Employees Association of Newport Beach (PTEANB). V. RECESSED - 6:55 p.m. VI. RECONVENED AT 7:10 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Brad Avery, Council Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon Excused: Council Member Kevin Muldoon VIII. CLOSED SESSION REPORT - None IX. INVOCATION - Pastor James Pike, Lutheran Church of the Resurrection, Huntington Beach X. PLEDGE OF ALLEGIANCE - Council Member Herdman Without objection, Mayor Dixon moved Item XVI out of order. XVI. PUBLIC COMMENTS ON NON AGENDA ITEMS The following individuals discussed and provided handouts expressing their concerns regarding the Newport Beach Aquatic Center (NAC) Board members and asked Council to conduct an investigation into the situation since the NAC is located on City -owned property: Lizzy Wonnick Lauren Wonnick Elyse Kong Patrick Rolfes Volume 64 - Page 13 City of Newport Beach Study Session and Regular Meeting January 22, 2019 John Warwick Donna Warwick Chrissy Emmel Matt Wyatt In response to Council comments, City Attorney Harp confirmed that no action on the NAC could take place at this meeting because the item is not on the current agenda. Ann Parker discussed the sober living court case, City of Costa Mesa vs. Yellowstone Recovery, and asked the City to file an amicus brief and assist Costa Mesa with funding the appeal. Steve Ray, Executive Director of Banning Ranch Conservancy, welcomed the newly elected Council Members, provided an update on the Conservancy, and indicated he looks forward to working with the City. XI. NOTICE TO THE PUBLIC Without objection, Mayor Dixon combined Items XII and XVII. XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Brenner: • Toured the Big Canyon Restoration area and the City's Traffic Management Center • Attended the Corona del Mar Residents Association meeting with Mayor Pro Tem O'Neill and Council Member Herdman; the Orange County Sanitation District (OCSD) special meeting; and the performance of Shrek at Harbor View Elementary • Commented on the performance of Grease put on by the students at Anderson Elementary • Requested a future agenda item regarding the Newport Aquatic Center (NAC) Council Member Herdman: • Attended the Airport Messaging and Strategy meeting; the Peninsula Pointe Homeowners Association meeting; the potential Palm Street Parking Structure meeting; the Sister Cities and City Arts Commission dinner; the monthly Government Affairs meeting at the Chamber of Commerce; the Orange County Mosquito and Vector Control District Board of Trustees meeting; the Airport Land Use Commission meeting; and a meeting with the City's new airport consultant • Requested a future agenda item regarding increasing buildable square footage for cottages within the City to discourage them from being demolished Mayor Pro Tem O'Neill: • Attended the Corona del Mar Residents Association meeting; the Finance Committee meeting; and the San Joaquin Hills Transportation Corridor Agency (TCA) meeting • Announced the upcoming Orange County Point in Time homeless census; Newport Beach Foundation Distinguished Citizens program; the Christmas Boat Parade awards dinner; CERT Banquet on January 30, 2019; the City Council 2019 Planning Session on February 2, 2019 at 9:00 a.m.; the Mayor's Dinner on February 7, 2019; the Lifeguard tryouts on February 10, 2019; and he would be moving his office hours to the 2nd Wednesday of the month starting in February Mayor Dixon: • Announced Restaurant Week will be held until January 27, 2019 (dinenb.com); and the Mayor's Youth Council has teamed with the Salvation Army to collect donations until March for families affected by the recent California wildfires. Donations can be dropped off at Newport Harbor and Corona del Mar High Schools or the City's Community Youth Center (amahaffev @new-oortbeachca.gov or 949-644-3151) • Attended the Newport Beach Foundation sponsored event to educate young adults about their government; and the City Leaders Reception, along with Council Member Brenner, held at Angel Stadium and sponsored by the Association of California Cities — Orange County (ACC -OC) Volume 64 - Page 14 City of Newport Beach Study Session and Regular Meeting January 22, 2019 • Indicated she will be traveling next week to Washington DC for the United States Conference of Mayors meeting and, while there, will meet with Congressman Rouda and other Congressional members to talk about John Wayne Airport (JWA) and harbor dredging. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher voiced his comments, questions and concerns regarding Items 1 (minutes for the January 8, 2019 meeting), Item 3 (proposed revisions to Council Policy A-1), Item 5 (General Plan Update and Steering Committee), and Item 7 (Professional Services Agreement with LSA of Irvine). Steve Ray, Banning Ranch Conservancy, expressed his thoughts on the General Plan Update Steering Committee regarding applicants' qualifications and asked for the process to be open and transparent. Carl Cassidy believed the General Plan Update Steering Committee, when discussing CEQA requirements, should include input from a variety of people with varying types of experiences. Mayor Pro Tem O'Neill pointed out that the selection process for the Steering Committee would be subject to the public records act, and clarified the Mayor would not be choosing the members of the Steering Committee, but will only be making suggestions along with himself and Council Member Brenner. Once their suggestions are made, the choices will be brought to Council for approval. Mayor Dixon reiterated that she has formed an ad hoc committee consisting of herself, Mayor Pro Tem O'Neill, and Council Member Brenner to review the applications for the General Plan Update Steering Committee and highlighted the Committee's duties. She announced the first General Plan meeting is scheduled for February 13, 2019 at 6:00 p.m. at Marina Park. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 8, 2019 City Council Meeting [100-20191 Waive reading of subject minutes, approve as written, 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. Resolution No. 2019-5: Proposed Revisions to City Council Policy A-1, City Council [100- 20191 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. 2019-5, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy A-1 Relating to City Council Meetings. 4. Resolution No. 2019-6: Adopting a Memorandum of Understanding with the Newport Beach Employees League (NBEL) and Associated Salary Schedule (C-2065) [38/100-2019] 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) Adopt Resolution 2019-6, 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 Newport Beach Employees League Association; and Volume 64 - Page 15 City of Newport Beach Study Session and Regular Meeting January 22, 2019 c) Approve Budget Amendment No. 019BA-028 appropriating $103,421.39 to salary and benefit accounts from unappropriated General Fund surplus fund balance for the remainder of fiscal year (FY) 2018/19 representing the first six (6) months of the three-year NBEL contract. Council Member Brenner abstained from Item 4 because she was not involved in the process, but expressed support for the item. 5. Resolution No. 2019-7: General Plan Update Initiation and Creation of a Steering Committee (PA2017-141) [241100-2019] 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. 2019-7, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to the General Plan and Local Coastal Program and Creating the General Plan Update Steering Committee. CONTRACTS AND AGREEMENTS 6. Architecture Services - Amendment No. 1 to On-call Professional Services Agreement with WLC Architects, Inc. (C-8122-1) [381100-2019] 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) Approve Amendment No. 1 to WLC's PSA, to extend the contract term to May 30, 2021, and add $100,000.00 to the current contract for a total not -to -exceed amount of $220,000.00; and c) Authorize the Mayor and City Clerk to execute the amendment. 7. Lower Sunset View Park Design —Approval of Professional Services Agreement with LSA (C-8020-2) (15T09) [38/100-2019] 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 Professional Services Agreement with LSA of Irvine, California, for the Lower Sunset View Park Conceptual Design project at a not -to -exceed price of $48,500, and authorize the Mayor and City Clerk to execute the Agreement. 8. Amendment No. One to Maintenance/Repair Services Agreement with International Line Builders, Inc. for Citywide Streetlight Maintenance and Repair Services (C-6212) [38/100- 2019] 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) Approve Amendment No. One to the Maintenance/Repair Services Agreement with International Line Builders, Inc., for Citywide streetlight maintenance and as -needed repairs, adding $125,000 to the contract for a total not -to -exceed amount of $1,478,425 for the remainder of the term of the agreement; and c) Authorize the Mayor and City Clerk to execute the Amendment. 9. Tentative Agreement with Newport Beach Police Management Association (NBPMA) (C-2932) [38/100-2019] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to §§15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Receive and consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Police Management Association. Council Member Brenner abstained on Item 9 because she was not involved in the process. Volume 64 - Page 16 City of Newport Beach Study Session and Regular Meeting January 22, 2019 MISCELLANEOUS 10. Planning Commission Agenda for the January 17, 2019 Meeting [100-2019] Receive and file. Motion by Mayor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the Consent Calendar; and noting the abstention by Council Member Brenner on Items 4 and 9. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Duffield, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Muldoon XV. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS (taken out of order) XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES (combined with Item XII) XVIII. PUBLIC HEARINGS 11. Harbor Fees for the New Harbor Department and Select Rents [100-20191 Council Member Duffield recused himself due to business interest conflicts. Senior Accountant Schweitzer utilized a PowerPoint presentation to discuss the background, harbor fees, and rents for mooring permits, slips, dinghy racks, guest/transient moorings and storage. In response to Council questions about rate increases, Jim Netzer, City's appraiser from Netzer & Associates, and Real Property Administrator Whitlinger indicated that the comparisons used for the rate change were based on Avalon, San Diego, Belmont Pier and Balboa Yacht Club rates and explained fair market booking fees, the initial application, anchorage fees, the history of rental rates, and noted rates have not increased in many years. Mayor Pro Tem O'Neill clarified that fees are not taxes but are charged to the specific person who needs a specific service from the City. He expressed his concerns about the proposed large increase in harbor fees. Council Member Avery also expressed his concerns about the proposed increase and suggested building the application fee into the rate. Mayor Dixon opened the public hearing. Jim Mosher commented on the possible conflict between the next Harbor Commission meeting and the General Plan Update Steering Committee meeting since they are both scheduled for February 13, 2019. Hearing no further testimony, Mayor Dixon closed the public hearing. Mayor Pro Tem O'Neill believed the $17 application fee could be a customer service issue and should be reviewed by the Harbor Commission. Volume 64 - Page 17 City of Newport Beach Study Session and Regular Meeting January 22, 2019 Motion by ayor Pro Tem O'Neill, seconded by Council Member Avery 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. 2019-3, A Resolution of the City Council of the City of Newport Beach, California, Adopting and Revising Certain Harbor Department Fees and Rents within the Schedule of Rents, Fines, and Fees, but have the $17 application fee be reviewed by the Harbor Commission. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Recused: Council Member Duffield Absent: Council Member Muldoon 12. Sidewalk Vending Permit Application Fee [100-2019] In response to Council Member Brenner's question, License Supervisor Navarette confirmed the size of the visible permit on the vending cart will need to be approximately 8x10 inches in size. Mayor Dixon opened the public hearing. Hoiyin Ip displayed a slide to voice her concerns regarding street vending and suggested handing out information with the permit application to educate street vendors on sustainability and the City's trash program. In response, to Mayor's Dixon's comment regarding increased trash bins throughout the City, License Supervisor Navarette reported that all sidewalk vendors will be required to provide their own trash receptacles. Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Mayor Pro Tem O'Neill, 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. 2019-4, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Sidewalk Vending Permit Application Fee within the Schedule of Rents, Fines, and Fees. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Duffield, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Muldoon 13. Accessory Dwelling Unit Ordinance Update - Amending the Zoning Code and Local Coastal Program (PA2018-099) [100-2019] Council Member Avery recused himself due to potential property interest conflicts and personal financial affect. Community Development Director Jurjis utilized a slide to provide an update on the item. Mayor Dixon opened the public hearing. Jim Mosher questioned the occupancy requirements and deed restrictions listed in both ordinances. Volume 64 - Page 18 City of Newport Beach Study Session and Regular Meeting January 22, 2019 Senior Planner Murillo and Community Development Director Jurjis confirmed that the occupancy restriction is allowed by State law, the intent is to insure the owner of the property resides at the property, and prevents a developer from renting both homes. If the home is sold, the deed restriction goes with the property and future property owners cannot rent out the Accessory Dwelling Unit (ADU). Additionally, City enforcement staff will rely on a complaint system, as well as recorded deed restrictions being submitted to City staff to monitor - Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Council Member Herdman, seconded by Council Member Duffield, 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. 2018-14, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 20 of the Newport Beach Municipal Code and Adopting Zoning Code Amendment No. CA2018-003 to Implement Revisions to State Law Relating to Accessory Dwelling Units (PA2018-099), and pass to second reading on February 12, 2019; c) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2019-1, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 of the Newport Beach Municipal Code and Adopting Local Coastal Program Amendment No. LC2017-003, as Modified by the California Coastal Commission (Accepting Their Suggested Modifications), Implementing New State Law Requirements Relating to Accessory Dwelling Units (PA2018-099), and pass to second reading on February 12, 2019; and d) adopt Resolution No. 2019-8, A Resolution of the City Council of the City of Newport Beach, California, Amending the Coastal Land Use Plan of the Local Coastal Program to Add Policy 2.7-5 Related to Accessory Dwelling Units (PA2018-099). The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Duffield, Mayor Pro Tem O'Neill, Mayor Dixon Recused: Council Member Avery Absent: Council Member Muldoon XIX CURRENT BUSINESS 14- Big Canyon Coastal Habitat Restoration and Adaptation Project - Phase 2A - Adoption of Mitigated Negative Declaration (MND) and Approve Project Design [100-20191 Public Works Director Webb, Assistant City Engineer Stein and Associate Planner Nova utilized a PowerPoint presentation to discuss the map of Big Canyon Nature Park, the upcoming restoration phases and other future projects, issues with water quality and selenium mitigation, removal of vegetation in the area, available funding, and expected costs along with the timeline for the restoration and adaption projects. In response to Council Member Duffield's comments, Assistant City Engineer Stein explained that selenium occurs due to over irrigation activities in the upper watersheds. Council Member Avery commended staff for their hard work and indicated how important upgrading this area would be, particularly with a focus on the recreational side. Discussion continued between Mayor Dixon, Assistant City Engineer Stein and Associate Planner Nova that included the importance of updating the area, how the Coastal Commission might be involved, and improving the existing trails in the area. Mayor Dixon commended the Newport Bay Conservancy for their support and involvement. Volume 64 - Page 19 City of Newport Beach Study Session and Regular Meeting January 22, 2019 Council Member Brenner indicated that, while hiking in the area last week, she believed the vegetation is very overgrown and conducive to transients. Randall English, President of Newport Bay Conservancy, described the Conservancy's involvement in the project and indicated this will be an educational and recreational area, great for schoolchildren to visit. Motion by Council Member Brenner, seconded by ayor Pro Tem O'Neill, to a) adopt Resolution No. 2019-9, A Resolution of the City Council of the City of Newport Beach, California, Adopting Mitigated Negative Declaration No. ND2018-001 (SCH No. 2018081098) for the Big Canyon Coastal Habitation Restoration and Adaptation Project - Phase 2A (PA2018-078), including the Mitigation Monitoring and Reporting Plan, prepared for the Big Canyon Coastal Habitat Restoration and Adaptation Project - Phase 2A (PA2018-078), pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3; and b) approve the design for the Big Canyon Coastal Habitat Restoration and Adaptation Project — Phase 2A. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Duffield, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Muldoon 15. Advanced (Water) Meter Infrastructure Project, Approval of Initial Proof of Performance Purchase and Installation Agreement, Project 19W12 (C-8582-1) [381100-20191 Utilities Director Vukojevic and Field Superintendent Catron utilized a PowerPoint presentation to discuss the City's water system, the process of transitioning to smart meters, benefits to the user and the City, the Advanced Meter Infrastructure (AMI) project description, and the proposed collectors and repeaters that would be used. He announced the selected contractor, Mueller LLC, thanked Purchasing Agent Nguyen for his hard work on the selection process, and requested Council amend their motion to replace the existing map with the map that was submitted after the agenda posted. Mayor Pro Tem O'Neill voiced his support of AMI, confirmed that approving this trial does not obligate the City to move forward with the $9.5 million project, discussed enterprise funds, infrastructure spending, State. water conservation requirements, and predicted a potential rate increase as water has become more expensive to buy. In response to Council Member Avery's question, Utilities Director Vukojevic indicated many Orange County cities, as well as 50% or more of water agencies use these meters, and indicated, although there will be challenges when starting a new system, indicated none of the new users want to go back to the old system and are very pleased with the amount of water that is being saved with this early notification system. Mayor Dixon and Utilities Director Vukojevic continued to discuss the benefits of AMI and the current drive-by system the City utilizes, Automated Auto Read (AMR). Luke Dru questioned if this new system had the capability to share its network with other City services such as traffic monitoring and traffic control. Utilities Director Vukojevic indicated the system is limited to the amount of information it can process and sharing the network at this time is not a possibility. Jim Mosher asked for clarification on how many collectors and repeaters would be used, should the City decide to go through with the larger project, where they would be located, and how many collectors and repeaters did the proposals from the other contractors include. Volume 64 - Page 20 City of Newport Beach Study Session and Regular Meeting January 22, 2019 Motion by Mayor Pro Tem O'Neill, seconded by Council Member Brenner, to a) find this work exempt from the California Environmental Quality Act (CEQA) pursuant to Section15301, Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; b) approve a Purchase and Installation Agreement for the Proof of Performance Phase of the Advanced (Water) Meter Infrastructure Project with Mueller LLC for $191,123.76; and c) authorize the Mayor and City Clerk to execute the Agreement. The motion carried by the following roll call vote: Ayes: Council Member Brenner, Council Member Herdman, Council Member Duffield, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Dixon Absent: Council Member Muldoon XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 9:35 p.m. in memory of Dorothy O'Brien The agenda and amended agenda were 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 January 17, 2019, at 4:00 p.m. I Lei ani I. Brown City Clerk Diane B. Dixon Mayor Volume 64 - Page 21