HomeMy WebLinkAbout01 - MinutesJune 25, 2019
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Minutes
Study Session and Regular Meeting
June 11, 2019
I. ROLL CALL - 5:00 p.m.
Present: Mayor Diane Dixon, Mayor Pro
Member Joy Brenner, Council
Council Member Kevin Muldoon
II.
Tem Will O'Neill, Council Member Brad Avery, Council
Member Duffy Duffield, Council Member Jeff Herdman,
SSI. Clarification of Items on the Consent Calendar - None
SS2. Recognizing the Newport Harbor High School Boys' Volleyball Team for Winning the
CIF Southern Section Division 1 Championship
Newport Harbor High School Athletic Director Jerry Murray and Coach Rocky Ciarelli
highlighted the volleyball team's season and introduced the players in attendance. Mayor Dixon
read the proclamation and presented it to the team. Council Member Duffield also recognized
Assistant Coach Dan Glenn and congratulated the team.
SS3. Update on Short Term Lodging (STL)
Community Development Director Jurjis, License Supervisor Navarrete, and Code Enforcement
Officer Contino utilized a PowerPoint presentation to provide background, discuss the effect of
the 9th Circuit Court ruling, the proposed ordinance and new owner application, interior
postings, agent and hosting platform requirements, enforcement, expanding existing single-
family STLs, and highlighted the proposed licensing requirement change, desire to continue
restricting STLs to mixed-use zones, and limiting the number of vehicles parked on the street.
In response to Council questions, staff reported the City has about 1,400 STL permits, but can
have over 10, 700 potential rental properties based on the allowed land use, discussed how STL
Transient Occupancy Taxes (TOT) are collected, the use of the subpoena process, the purpose of
Host Compliance, the TOT information on the STL ad, how code enforcement receives STL
violation information from the Police Department, how violations are handled in the Harbor,
how cities are working with hosting platforms to have them collect the TOT upfront and remit
it to the owner for submission to the City, the TOT remittance schedule for hosting platforms,
hotels, agents and owners, reviewed the City's quiet hours and how enforcement is handled, and
assured that people can call relative to disturbances any time of the day.
Mayor Pro Tem O'Neill suggested the property owner or management company provide more
than one contact number.
Council Member Brenner discussed the impacts of STLs in R-2 areas.
Council Member Herdman pointed out the need for education and enforcement, and believed it
should be emphasized to the renters that street parking is not guaranteed.
Nancy Gardner suggested defining "noise" in the ordinance.
Gary Sherwin, President of Newport Beach and Company, discussed the importance of tourism,
believed the local owners and management companies follow the rules, but took issue with the
hosting platforms, expressed concern with using City services without paying for them, thanked
staff, and suggested hosting platforms be required to display STL permit numbers.
Don Abrams, Abrams Coastal Properties, agreed with most of the suggested ordinance changes,
except for eliminating the licensing requirement and closing unused STL permits.
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Nancy Arrache discussed illegal parking, believed more enforcement is needed, noted renting
for commercial purposes is prohibited, expressed concern with trash left behind, suggested
implementing a code enforcement hotline, and making STLs subject to periodic inspections.
Karen Carlson agreed that permits should expire after two or three years, especially in R-1
zones, and the TOT amount should be listed.
Jim Petrilh expressed concerns relative to the maximum occupancy calculation, requested that
older permits be grandfathered at current occupancy, and suggested basing occupancy on the
number of bedrooms, parking spaces and bathrooms.
Craig Batley noted STL guests can be asked to leave immediately, there is more impact to the
City by visitors than renters, houses cannot be rented without parking, expressed support for
enforcement and higher fines, expressed concern relative to the 25% restriction in NBMC
Section 5.95.020, and suggested forming a subcommittee to review this.
Shannon Horan, Rental Manager with Abrams Coastal Properties, discussed the difference with
how hosting platforms and property managers collect TOT, and believed the City cannot
reconcile the money from hosting platforms.
Roann Turk indicated she discloses the TOT amount to her guests, they pay it upon booking,
and she remits it to the City. She also provides her guests with the Loud and Unruly Gathering
Ordinance (LUGO) brochure and contact information.
Carmen Rawson believed agents should be licensed, liable for what happens with the property,
and collect the TOT. She also expressed concern with the proposed square footage calculation.
Valerie Van de Zilver indicated she assisted six Orange County cities create STL ordinances.
She discussed how her management company advises renters about TOT and how hosting
platforms handle it, noted her company pays TOT to the cities, highlighted her rental policy,
and pointed out the need to educate guests on the rules.
James Petrilli noted his grandparents use their STL as their retirement income and expressed
concerns with how the square footage calculation could affect owners and their livelihood.
Scott Carpenter, itripvacations.com, stated his hosting platform follows all City and State rules,
he is not a licensedreal estate agent, TOT is disclosed to the renters, believed property managers
should remit TOT and provide a detailed listing by property, asked how the vehicle regulation
would be enforced, and agreed that a working group should be formed.
Ken Rawson requested the City's help with making this a level playing field, expressed concern
with trash at rental units and who to contact if the STL was booked through a hosting platform,
expressed support for the ordinance changes, and believed the maximum occupancy number
should be stricter.
Jeff Bosson, SeaBreeze Vacation Rentals, believed Newport Beach handles STLs better than
most cities, noted houses cannot be rented without parking, and suggested using two occupants
per bedroom + two as the occupancy calculator.
Jim Mosher suggested the ordinance require the City to produce a registry of legal STL
properties, similar to San Francisco and Santa Monica, suggested taking another look at the
definition of "owner," discussed TOT and visitor service fee amounts, questioned how many
business licenses are needed, asked when a violation ends and another begins, and asked if the
City will reserve the private right of action for the public.
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In response to Council questions, staff explained the reasoning behind revoking permits,
confirmed the City receives about $4 million a year from STL TOTS, there is only one code
enforcement officer on duty on Saturdays, the square footage calculation coincides with the
Building and Fire Codes but it can be at the Building Official's and Fire Marshal's discretion if
desired, it is already illegal to exceed the code's occupancy limits, discussed how complaints or
violations are currently handled and the proposed fine schedule, reported TOT goes into the
General Fund, and Host Compliance's services pay for itself.
Mayor Pro Tem O'Neill believed a license requirement is not needed, a process for revocation of
the permit for non-use should be created, and asked staff to speak with Ms. Horan regarding
remittance issues she discussed.
Council Member Muldoon indicated he is not supportive of requiring additional licensing for
managing properties, limiting the number of occupants beyond what is allowed by the codes,
and the automatic suspension of permits unless it is in the R-1 zone. He expressed concerns
regarding large parties, food trucks, commercial use of properties, excessive noise, and trash.
He suggested requiring the hosting platforms pay the TOT directly to the City at time of the
booking.
Council Member Brenner expressed concern with sending Police Officers to STLs repeatedly and
the City not being properly reimbursed, and suggested including cost recovery into the
ordinance, objected to favoring STLs in R-2 zones since disturbances are the same in any
neighborhood, and believed the City should be tougher and have zero tolerance for noise
disturbances.
Mayor Dixon indicated she would like to form an ad hoc committee to discuss STL issues, agreed
the City manages STLs well, and it has good owners and property managers overseeing these
properties.
III. PUBLIC COMMENTS
Jim Mosher commended City Attorney Harp for assisting during a medical emergency at an Aviation
Committee meeting on June 10, 2019. He also thanked the former City Manager and Fire Chief for
placing defibrillators in City vehicles and buildings, and providing training to staff.
IV. RECESSED - 6:49 p.m.
V. RECONVENED AT 7:05 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
Mayor Dixon announced she will be requesting that Item 4 be considered under Motion for
Reconsideration.
VII. INVOCATION - Pastor Jack West, Mariners Church Irvine
VIII. PLEDGE OF ALLEGIANCE - Mayor Pro Tem O'Neill
IN. NOTICE TO THE PUBLIC
X. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
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City of Newport Beach
Study Session and Regular Meeting
June 11, 2019
Council Member Avery:
• Attended the Balboa Island Parade and the first Homeless Task Force meeting
Council Member Duffield:
• Attended the 3Td Annual Newport Harbor Underwater Cleanup
Council Member Muldoon:
• Attended the Balboa Island Parade
Recognized City Attorney Harp for his assistance during an emergency at the recent Aviation
Committee meeting
Council Member Brenner:
• Utilized slides to discuss her tour of the Police Department with Police Chief Lewis, tour of the
Lifeguard Headquarters with Fire Chief Duncan, meeting with Fire Marshal Bass, and tour of the
San Joaquin Reservoir with Utilities Director Vukojevic
• Attended a Women in Newport Beach Government Luncheon, the Employee Appreciation
Luncheon, the Corona del Mar Scenic 5K (slide), the Balboa Island Parade (slide), the Orange
County Sanitation District meeting, and the Lido House Hotel one-year anniversary party
Council Member Herdman:
• Attended the Balboa Island Parade and thanked his colleagues for their participation, as well as
Jack Callahan, Balboa Island Improvement Association President, the Wooden Boat Festival with
Mayor Dixon, the Water Quality/Coastal Tidelands Committee meeting, the Employee Appreciation
Luncheon, a tour of One Uptown Newport Apartments, and the Newport Beach Chamber of
Commerce Marine Committee meeting
• Spoke at the Little Balboa Island Summer Speaker Series
• Announced the upcoming Newport Beach Art Exhibition on June 15, 2019, and the first Concert on
the Green on June 16, 2019
• Displayed the new "Poop Fairy is On Vacation" sign that will be placed throughout the City to
remind people to clean up after their dogs
Mayor Pro Tem O'Neill
• Recognized the students in the audience from Newport Harbor High School and Council Member
Muldoon for his Pt Father's Day on Sunday
• Attended a Newport Beach Foundation Distinguished Citizens event, the Balboa Island Parade, the
Employee Appreciation Luncheon, and the Homeless Task Force meeting
• Wished the entire community a Happy Father's Day
Mayor Dixon:
• Introduced her grandson Brooks Thompkins
• Attended the Corona del Mar Scenic 5k, the District 1 Town Hall meeting, the Lido House Hotel
one-year anniversary party, the grand opening of Fable & Spirit restaurant, the Balboa Island
Parade, the Women in Newport Beach Government Luncheon, and the Employee Appreciation
Luncheon
• Utilized slides to announce the upcoming Vote Center Community Workshop on June 28, 2019, the
4th of July Newport Peninsula Bike Parade & Community Festival and Mariner's Park
Independence Day Parade & Celebration, and the next Speak Up Newport community forum where
Council Member Duffield and Harbormaster Borsting will speak
XI. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
• Incorporating the Harbor Commission into the City Charter (Duffield)
The City Council unanimously concurred to place the matter on a future agenda.
• Creating a Marine Avenue Projects Committee (Standing Committee) (Muldoon)
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With Council Member Herdman recusing himself due to real property interests, the City
Council unanimously concurred to place the matter on a future agenda.
• Review of City Council Policy H-1 (Harbor Permit Policy) to Provide Direction to the
Harbor Commission (O'Neill)
The City Council unanimously concurred to place the matter on a future agenda.
XII. PUBLIC COMMENTS ON CONSENT CALENDAR
Kenyon Paar, General Manager of Five Crowns and SideDoor restaurants, expressed the importance of
the Newport Beach Restaurant Association Business Improvement District (NBRA BID).
Eunjoo Pluenneke, Secretary of the NBRA BID Board and owner of Balboa Lily's and Boardwalk by
Balboa Lily's, expressed reasons why the NBRA BID is a huge value to the City.
Jim Walker, owner of The Bungalow Restaurant, discussed the support of local restaurants at City
events, explained why it is difficult for the NBRA BID to change to the 1996 BID law, took issue with
City funds being provided to the Newport Beach Film Festival, and asked Council to consider the value
of BIDs before making any decisions.
Regarding Item 20 (Board and Commission Scheduled Vacancies), Jim Mosher expressed concerns
regarding the nominations on the Civil Service Board, the City Arts Commission and the Harbor
Commission, and discussed his belief that the City Charter, City Council Policy A-2, and the Brown Act
were violated.
City Attorney Harp confirmed that the appointment to the City Arts Commission would need to be a
four-year term per the City's Charter and explained why it is acceptable to have only one nominee for
the Civil Service Board vacancy.
XIII. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the May 28, 2019 City Council Meeting [100-2019]
Waive reading of subject minutes, approve as amended, and order filed.
2. Reading of Ordinances
Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title
only.
ORDINANCE FOR ADOPTION
3. Pulled from the Consent Calendar
RESOLUTIONS FOR ADOPTION
4. Pulled for discussion under Motion for Reconsideration
5. Resolution No. 2019-49: Annual Measure M2 -Program Eligibility Submittal [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 the Measure M2 Seven -Year CIP;
c) Adopt Resolution No. 2019-49, A Resolution of the City Council of the City of Newport Beach,
California, Concerning the Status and Update of the Circulation Element, Mitigation Fee
Program, and Pavement Management Plan for the Measure M2 Program; and
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d) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual eligibility
requirements.
Council Member Herdman recused himself on Item 5 due to real property interests.
6. Resolution No. 2019-50: Adopting a Resolution Pursuant to Labor Code Section 3600.2;
Workers' Compensation [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) Adopt Resolution No. 2019-50, A Resolution of the City Council of the City of Newport Beach,
California, Made Pursuant to California Labor Code Section 3600.2.
Resolution No. 2019-51: Adoption of Fiscal Year 2019-20 Appropriations Limit [100-2019]
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. 2019-51, A Resolution of the City Council of the City of Newport Beach,
California, Determining and Establishing an Appropriations Limit (GANN) for Fiscal Year
2019-20 in Accordance with Article AAIB of the California Constitution and Government Code
Section 7910 in the amount of $ 201,601,920.
S. Resolution No. 2019-52: Authorizing the Temporary Closure of Selected Streets for the
July 4th Holiday Period [100-2019]
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. 2019-52, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing the Temporary Closure of BackBay Drive, the ZOOBIock of Orange Street
from Traffic Off of Pacific Coast Highway, Via Oporto from Via Lido to 32^d Street, San Joaquin
Hills Road Between Back Bay Drive and the Entrance to the Park Newport Apartment Complex,
and Via Malaga Between Via Oporto and Via Lido.
9. Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of
Public Hearing [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 the Corona del Mar Business Improvement District's Fiscal Year 2018-19 Annual
Report and its Proposed Fiscal Year 2019-20 Budget; and
c) Adopt Resolution No. 2019-46, A Resolution of the City Council of the City of Newport Beach,
California, Declaring its Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments for the Fiscal Year of July 1, 2019 to June 30, 2020, and Fix the Time and
Place of a Public Hearing for June 25, 2019.
Mayor Pro Tem O'Neill abstained on Item 9.
10. Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant
Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the
Time and Place of a Public Hearing [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 the Newport Beach Restaurant Association Business Improvement District's Revised
Fiscal Year 2018-19 Annual Report and its Revised Proposed Fiscal Year 2019-20 Budget; and
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June 11, 2019
c) Adopt Resolution No. 2019-47, A Resolution of the City Council of the City of Newport Beach,
California, Declaring its Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments for the Fiscal Year of July 1, 2019 to June 30, 2020,
and Fix the Time and Place of a Public Hearing for June 25, 2019.
Mayor Pro Tem O'Neill abstained on Item 10.
11. Resolution No. 2019-53: Formation of an Ad Hoc Committee on Business Improvement
Districts [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 No. 2019-53, A Resolution of the City Council of the City of Newport Beach,
California, Creating an Ad Hoc Committee on Business Improvement Districts, as amended to
include a third Council Member to the committee; and
c) Confirm Mayor Diane Dixon's appointments of herself, Council Member Joy Brenner and
Council Member Jeff Herdman to the Ad Hoc Committee on Business Improvement Districts.
CONTRACTS AND AGREEMENTS
12. Street Pavement Repair Program - Notice of Completion for Contract No. 7442-1 (19R03)
[381100-2019]
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project. On November 13, 2018, the City Council found this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c);
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
13. Concrete Replacement Program - Notice of Completion for Contract No. 7434-1 (19R06)
[381100-2019]
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project. On November 27, 2018, the City Council found this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c);
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
14. Newport Bay Trash Mitigation Project - Approval of Agreement for Catch Basin
Connector Pipe Screens (CPS) (C-8022-1) [381100-2019]
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301, Class 1 (Existing Facilities) of the CEQA Guidelines, because this project has no
potential to have a significant effect on the environment;
b) Approve Budget Amendment No. 19BA-046 recognizing and appropriating $125,226 in new
revenue and expenditures from Orange County Transportation Authority (OCTA) Measure M
Competitive revenue (Account No. 1230052-431150-19X11) and Measure M Competitive CIP
(Account No. 1230052-980000-19X11); and
c) Authorize the City Manager to enter into the necessary agreements with United Storm Water,
Inc. for $156,531.75 for the purchase and installation of 425 catch basin connector pipe screens
(CPS).
15. Tentative Agreement with the Part Time Employees Association of Newport Beach
(PTEANB) (C-3362) [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; and
b) Receive and file the Tentative Agreement between the City of Newport Beach and the Part Time
Employees Association of Newport Beach.
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Study Session and Regular Meeting
June 11, 2019
16. Tentative Agreement with the Newport Beach Fire Management Association (NBFMA)
(C-2946) [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) Receive and file the Tentative Agreement between the City of Newport Beach and the Newport
Beach Fire Management Association.
17. General Liability Third Party Administrator - Approval of Professional Services
Agreement with AdminSure, Inc. (C-8179-1) [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 five-year Professional Services Agreement with AdminSure, Inc. for Third Party
General Liability Claims Administration Services at a not -to -exceed amount of $565,015.34, and
authorize the Mayor and City Clerk to execute the Agreement.
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18. Planning Commission Agenda for the June 6, 2019 Meeting [100-2019]
Receive and file.
19. Appointments to the Aviation Committee [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;
b) Confirm Mayor Diane B. Dixon's appointment of Alan Guenther as the District 1 Member on
the Aviation Committee for a term expiring June 30, 2025;
c) Confirm Mayor Pro Tem Will O'Neill's appointment of Hugh Logan as the District 7 Member on
the Aviation Committee for a term expiring June 30, 2025;
d) Confirm Council Member Brad Avery's appointment of Steve Byers as the District 2 Member on
the Aviation Committee for a term expiring June 30, 2022;
e) Confirm Council Member Duffy Duffiehfs appointment of Bonnie O'Neil as the District 3
Member on the Aviation Committee for a term expiring June 30, 2025;
f) Confirm Council Member Kevin Muldoon's appointment of Thomas Meng as the District 4
Member on the Aviation Committee for a term expiring June 30, 2022;
g) Confirm Council Member Jeff Herdman's appointment of James Dunlap as the District 5
Member on the Aviation Committee for a term expiring June 30, 2025;
h) Confirm Council Member Joy Brenner's appointment of Jeffrey Cole as the District 6 Member
on the Aviation Committee for a term expiring June 30, 2022;
i) Confirm Mayor Diane B. Dixon's appointment of Jack Stranberg as the At -Large Member on the
Aviation Committee for a term expiring June 30, 2022;
j) Confirm Mayor Diane B. Dixon's appointment of Stephen Livingston as the General Aviation
Community Member on the Aviation Committee for a term expiring June 30, 2025; and
k) Direct the City Clerk to advertise for the Newport Coast seat on the Aviation Committee.
20. Board and Commission Scheduled Vacancies - Confirmation of Nominees [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;
b) Waive the portion of City Council Policy A-2 (Boards, Commissions & Committees) that
recommends nominating two or more candidates for each vacancy, if a sufficient number of
candidates are available;
c) Should the City Council nominate Arlene Greer for a potential seat on the City Arts Commission,
waive a portion of City Council A-2; and
d) Confirm the nominations made by the City Council Ad Hoc Appointments Committee:
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Board of Library Trustees [2 vacancies]
1. Janet Ray (incumbent)
2. Barbara Glabman
3. Carrie Williams
4. Ash Kumra
Buildine and Fire Board of Anneals [1 vacancy]
1. Robert Ahlke (incumbent)
2. Crystal Chavez -Jones
Citv Arts Commission [1 vacancy]
1. Arlene Greer (incumbent)
2. Maureen Flanagan
Civil Service Board [1 vacancy]
Maiqual (Mike) Talbot
Harbor Commission [2 vacancies]
1. Marie Marston
2. Steve Scully
3. Renee West
Parks. Beaches & Recreation Commission [2 vacancies]
1. Laird Hayes (incumbent)
2. Cynthia Sender
3. Sheela Voleti
4. Kate Malouf
Plannine Commission [2 vacancies]
1. Sara Klaustermeier
2. Alex Chazen
3. Mark Rosene
Motion by Mavor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the
Consent Calendar, except for the items removed (3 and 4); and noting the recusal by Council Member
Herdman on Item 5, abstentions by Mayor Pro Tem O'Neill on Items 9 and 10, and amendments to
Items 1 and 11.
The motion carried unanimously.
XIV. ITEM REMOVED FROM THE CONSENT CALENDAR
3. Ordinance No. 2019-9: Adoption of an Ordinance Restricting Construction Related Noise
on Saturday and Posting of a Project Information Sign for Construction Projects in High -
Density Areas [100-2019]
Council Member Avery indicated the Newport Shores Community Association would like to opt out
of the ordinance requirements and believed other homeowner associations should be provided that
option.
Following discussion, it was determined to move forward with Ordinance No. 2019-9 and direct staff
to bring back a proposed amendment at a future meeting to allow homeowner associations the
opportunity to opt out of the regulations.
Motion by Mavor Pro Tem O Neill, seconded by Council Member Herdman, to a) find this
action 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, California Code of Regulations, Title 14, Chapter 3, because it has no potential
for resulting in physical change to the environment, directly or indirectly; and b) conduct second
reading and adopt Ordinance No. 2019-9, An Ordinance of the City Council of the City of Newport
Beach, California, Amending Portions of Chapters 10.28 and 15.16, and Adding Section 15.60.030
to the Newport Beach Municipal Code, Relating to Construction Activity and Signage in Designated
High -Density Areas.
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The motion carried unanimously.
XVII. MOTION FOR RECONSIDERATION
4. Resolution No. 2019-48: Approving the Proposed Residential Dock Reconstruction
Project at 939 Via Lido Soud [100-2019]
Mark Conzelman, appellant, confirmed he is available at attend the June 25, 2019 City Council
meeting, but questioned what factors caused Mayor Dixon to make a motion for reconsideration.
Mayor Dixon briefly highlighted the reasons the item is being reconsidered.
Pete Swift took issue with Council reconsidering this item and questioned the concerns regarding
the proposed dock plan.
Motion by Mavor Dixon. seconded by Council Member Brenner, to reconsider the item and
bring it back at the June 25, 2019 City Council meeting.
The motion carried 5-1-1, with Mayor Pro Tem O'Neill abstaining and Council Member Muldoon
voting no.
XV. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Susan Skinner apologized to the City Council and City Attorney Harp for stating the City violated the
Brown Act relative to Closed Session items, but asked Council to work towards having more
transparency in the future.
Ken Rawson expressed concerns about electric bicycles speeding on the boardwalk and asked Council to
increase Police presence in the area.
Joe Angelo requested that electric bicycles be prohibited on the boardwalk and Police foot patrol be
increased on the boardwalk.
Randall English thanked the City for working with the Newport Bay Conservancy to support
environmental education programs.
Brenda Martin expressed concerns regarding traffic on the boardwalk and the proposed updates to the
STL regulations.
XVI. PUBLIC HEARINGS
21. Resolution No. 2019-54: Fiscal Year 2019-2020 Budget Adoption; City Budget Hearing;
Recommendations from the Finance Committee; and Proposed Budget Revision Items
[100-2019]
Finance Director Matusiewicz and Budget Manager Giangrande utilized a PowerPoint presentation
to discuss budget principles, highlight the positive aspects of the proposed budget, review the budget
development timeline, proposed summary, General Fund sources, how it is utilized in conjunction
with the budget, unrestricted resources, full-time and part-time position counts, and staff
recommendations.
Mayor Dixon opened the public hearing.
Jim Mosher believed the salaries listed in the proposed budget are only estimates and indicated the
exact salary amounts can be found with the State Controller and Transparent California
(pubhcpay.ca.gov). He questioned if the budget allows staff to provide financial support to other
merchant associations other than the two BIDS, and if there is funding available to address the
homeless issues.
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Mario Marovic discussed concerns regarding inexperienced landlords, short term rentals, and
homelessness, and requested Council reallocate funds to address these issues.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Mayor Pro Tem O'Neill requested that Line Item 4 (Orange County River Park Contribution for
Video Production) on the Budget Revisions list be removed and be encouraged to request funding
through the City's grant program.
Mayor Dixon utilized a PowerPoint presentation to explain that, due to the increase in crime and
traffic in the City, she is requesting to add two Traffic Division Police Officers to the proposed
budget.
Motion by Mavor Dixon. seconded by Council Member Brenner, to a) determine this action
is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2)
and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to
the environment, directly or indirectly; b) receive and file the Finance Committee's budget
recommendations; c) approve the Budget Revisions, with the removal of Line Item 4, and include it
in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution No. 2019-54, A Resolution
of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2019-20
Fiscal Year, as amended by the Budget Revisions and the addition of two Traffic Division Police
Officers; and d) file the City Manager's recommended City position classifications and their salary
ranges with Resolution No. 2019-54.
Mayor Pro Tem O'Neill utilized slides to explain why he does not support adding any additional
positions to the proposed budget and believed, if Police Chief Lewis wanted additional positions, he
would request them.
In response to Council questions, Police Chief Lewis discussed current Police staffing levels,
salaries, benefit costs, the City's unfunded pension liability, calls for service, the reduction in crime
over the past two years, and current traffic trends in the City.
Substitute motion by Mavor Pro Tem O'Neill, seconded by Council Member Muldoon, to
a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant
to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result
in a physical change to the environment, directly or indirectly; b) receive and file the Finance
Committee's budget recommendations; c) approve the Budget Revisions, with the removal of Line
Item 4, and include it in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution
No. 2019-54, AResolution of the City Council of the City of Newport Beach, California, Adopting the
Budget for the 2019-20 Fiscal Year, as amended by the Budget Revisions; and d) file the City
Manager's recommended City position classifications and their salary ranges with Resolution
No. 2019-54.
Council Member Muldoon assured the public that Newport Beach is a safe place to live, believed the
City's crime statistics cannot be compared with other cities since some cities do not report all crimes,
and suggested only adding one Police Officer to the proposed budget, but allowing the Police Chief
to decide where that position needs to be placed in the department. Mayor Pro Tem indicated he
would not support additional personnel at this time.
Discussion ensued between Council and staff that included employee attrition rates, recruiting
efforts, retirements, the lack of officers available to enforce rules and regulations, the increase of
activity with summer coming, and the changing service demand areas.
Mayor Pro Tem O'Neill discussed the amount of time and effort that went into developing the
proposed budget, noted it is supported by the City Manager and Police Chief, believed no amount of
officers could have prevented the recent homicides that occurred in the City, and indicated he would
not support adding any additional Police Officers.
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The substitute motion failed 3-4, with Council Member Muldoon, Council Member Herdman,
Council Member Brenner, and Mayor Dixon voting no.
Mayor Dixon concurred with Mayor Pro Tem O'Neill about the amount of work that goes into
preparing the budget, reiterated her thoughts on why more Police Officer positions are needed, and
agreed to the compromise by Council Member Muldoon to add one additional officer, at the Police
Chief s discretion.
Mayor Pro Tem O'Neill suggested approving staffs recommendation, with the removal of Line Item
4, and direct staff to bring back the request to hire one Police Officer.
Substitute motion by Council Member Muldoon, seconded by Council Member Brenner,
to a) determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will
not result in a physical change to the environment, directly or indirectly; b) receive and file the
Finance Committee's budget recommendations; c) approve the Budget Revisions, with the removal
of Item 4, and include it in the City's Fiscal Year 2019-20 Approved Budget; c) adopt Resolution No.
2019-54, A Resolution of the City Council of the City of Newport Beach, California, Adopting the
Budget for the 2019-20 Fiscal Year, as amended by the approved Budget Revisions; d) file the City
Manager's recommended list of City position classifications and their salary ranges with Resolution
No. 2019-54; and e) direct staff to bring back a staff report relative to the hiring of one Police Officer.
The motion carried unanimously.
22. Ordinance No. 2019-10: Introduction of an Ordinance Amending the Zoning Code to
Rename the Multiple Residential Detached (RM -D) and Include a Reference to Allow for
Attached Units (PA2019-065) [100-2019]
Community Development Director Jurjis reported the reason for the code amendment is due to the
current code only allowing attached units and not detached units.
Mayor Dixon opened the public hearing.
Anastasios Nikolaou expressed support for amending the zoning code since his property is impacted
by the current code.
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 exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305
under Class 5 (Minor Alterations in Land Use Limitations) of the CEQA Guidelines, because it has
no potential to have a significant effect on the environment; and b) waive full reading, direct the
City Clerk to read by title only, introduce Ordinance No. 2019-10, An Ordinance of the City Council
of the City of Newport Beach, California, Amending the Newport Beach Municipal Code to Rename
the Multiple Residential Detached (RM -D) Zoning District to Medium Density Residential (RMD)
and Include Reference to Attached Dwelling Units (PA2019-065), and pass to second reading on
June 25, 2019.
The motion carried unanimously.
21. Resolution No. 2019-55: Authorization to Issue Obligations by the California Statewide
Development Authority to Benefit the Harbor Pointe Senior Living Project [100-2019]
Finance Director Matusiewicz provided the staff report, confirmed the City is not responsible for
payment of the bonds, and explained the City's involvement.
Mayor Dixon opened the public hearing.
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City of Newport Beach
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Jim Mosher believed this is a gift to the private investors since it would allow them to invest tax
free, and questioned whether the project is a residential project and subject to Greenlight (Charter
Section 423).
Community Development Director Jurjis indicated this project meets the General Plan
requirements and is not subject to Greenlight.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Mayor Pro Tem O'Neill emphasized that the bonds are not a gift and pointed out the City had
nothing to do with the passing of the Tax Equity and Fiscal Responsibility Act (TEFRA).
Motion by Mavor Pro Tem O'Neill, seconded by Council Member Duffield, to a) find the
approval of this resolution is not subject to the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined
in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or indirectly.
Alternatively, find the approval of this resolution is not a project under CEQA Regulation Section
15061(b)(3) because it has no potential for causing a significant effect on the environment; and b)
adopt Resolution No. 2019-55, A Resolution of the City Council of the City of Newport Beach,
California, Approving the Issuance, Sale and Delivery of Multifamily Housing Revenue Bonds of the
California Statewide Communities Development Authority for Harbor Pointe Senior Living.
The motion carried unanimously
XVII. MOTION FOR RECONSIDERATION - None
XVIII. ADJOURNMENT - 9:24 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 June 6,
2019, at 4:00 p.m.
Leilani I. Brown
City Clerk
Diane B. Dixon
Mayor
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